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Real Estate | 6 Months Ended
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Jun. 30, 2021
Real Estate [Abstract] |
Real Estate | 3. Real Estate Boston Properties, Inc. Real estate consisted of the following at June 30, 2021 and December 31, 2020 (in thousands):
|  | June 30, 2021 |  | December 31, 2020
Land |  | $ | 5,038,870 |  |  | $ | 5,069,206 |
Right of use assets - finance leases |  | 237,765 |  |  | 237,393 |
Right of use assets - operating leases (1) |  | 170,331 |  |  | 146,406 |
Land held for future development (2) |  | 497,019 |  |  | 450,954 |
Buildings and improvements |  | 14,082,350 |  |  | 13,777,691 |
Tenant improvements |  | 2,839,358 |  |  | 2,752,880 |
Furniture, fixtures and equipment |  | 51,517 |  |  | 49,606 |
Construction in progress |  | 908,061 |  |  | 868,773 |
Total |  | 23,825,271 |  |  | 23,352,909 |
Less: Accumulated depreciation |  | (5,752,818) |  |  | (5,534,102) |
|  | $ | 18,072,453 |  |  | $ | 17,818,807 |
_______________ (1)See Note 4. (2)Includes pre-development costs. Boston Properties Limited Partnership Real estate consisted of the following at June 30, 2021 and December 31, 2020 (in thousands):
|  | June 30, 2021 |  | December 31, 2020
Land |  | $ | 4,942,017 |  |  | $ | 4,971,990 |
Right of use assets - finance leases |  | 237,765 |  |  | 237,393 |
Right of use assets - operating leases (1) |  | 170,331 |  |  | 146,406 |
Land held for future development (2) |  | 497,019 |  |  | 450,954 |
Buildings and improvements |  | 13,803,708 |  |  | 13,498,098 |
Tenant improvements |  | 2,839,358 |  |  | 2,752,880 |
Furniture, fixtures and equipment |  | 51,517 |  |  | 49,606 |
Construction in progress |  | 908,061 |  |  | 868,773 |
Total |  | 23,449,776 |  |  | 22,976,100 |
Less: Accumulated depreciation |  | (5,643,781) |  |  | (5,428,576) |
|  | $ | 17,805,995 |  |  | $ | 17,547,524 |
_______________ (1)See Note 4. (2)Includes pre-development costs. Acquisitions / Pending Acquisitions On April 19, 2021, the Company entered into an agreement to acquire 11251 Roger Bacon Drive, in Reston, Virginia, for an aggregate purchase price of approximately $5.6 million. The closing is scheduled to occur in the first quarter of 2022. 11251 Roger Bacon Drive is an approximately 65,000 square foot office building situated on approximately 2.6 acres. The property is 100% leased to a single tenant with a lease expiration prior to the planned closing. There can be no assurance that the acquisition will be consummated on the terms currently contemplated or at all. On June 2, 2021, the Company acquired 153 & 211 Second Avenue located in Waltham, Massachusetts for an aggregate purchase price of approximately $100.2 million in cash. 153 & 211 Second Avenue consists of two life sciences lab buildings totaling approximately 137,000 net rentable square feet. The properties are 100% leased. The following table summarizes the allocation of the purchase price, including transaction costs, of 153 & 211 Second Avenue at the date of acquisition (in thousands):
Land |  | $ | 33,233 |
Building and improvements |  | 53,309 |
Tenant improvements |  | 2,631 |
In-place lease intangibles |  | 13,415 |
Below-market lease intangibles |  | (2,412) |
Net assets acquired |  | $ | 100,176 |
The following table summarizes the estimated annual amortization of the acquired in-place lease intangibles and the acquired below-market lease intangibles for 153 & 211 Second Avenue for the remainder of 2021 through the last lease expiration (in thousands):
|  | Acquired In-Place Lease Intangibles |  | Acquired Below-Market Lease Intangibles
Period from June 2, 2021 through December 31, 2021 |  | $ | 5,202 |  |  | $ | 935 |
2022 |  | 8,213 |  |  | 1,477 |
153 & 211 Second Avenue contributed approximately $0.8 million of revenue and approximately ($0.3) million of earnings to the Company for the period from June 2, 2021 through June 30, 2021. On June 7, 2021, the Company entered into an agreement to acquire Shady Grove Bio+Tech Campus in Rockville, Maryland, for an aggregate purchase price of approximately $116.5 million. The closing is scheduled to occur in the third quarter of 2021. The Company’s refundable deposit of $10.0 million is reflected as Cash and Cash Equivalents in the Company’s Consolidated Balance Sheets. Shady Grove Bio+Tech Campus is an approximately 435,000 net rentable square foot, seven-building office park situated on an approximately 31-acre site. The Company intends to reposition three of the buildings, which are currently vacant, to support life sciences uses (See Note 15). On June 25, 2021, the Company entered into an agreement to acquire 360 Park Avenue South in New York City, New York for an aggregate purchase price of approximately $300.0 million, including (1) the assumption of the mortgage loan collateralized by the property totaling approximately $202.0 million and (2) the issuance of approximately $98.0 million of OP Units, with a floor price of $111.00 per OP Unit. The closing is scheduled to occur in the fourth quarter of 2021. The Company’s deposit of $30.0 million is reflected as Cash Held in Escrows in the Company’s Consolidated Balance Sheets. 360 Park Avenue South is an approximately 450,000 square foot Class A office building. Upon acquisition, the building will be vacant and the Company intends to redevelop or reposition the building. There can be no assurance that the acquisition will be consummated on the terms currently contemplated or at all. On June 29, 2021, the Company entered into an escrow agreement in connection with an option granted to the Company to purchase Safeco Plaza in Seattle, Washington. The Company’s refundable deposit of $46.5 million is reflected as Cash and Cash Equivalents in the Company’s Consolidated Balance Sheets. Safeco Plaza is an approximately 800,000 square foot Class A office building. There can be no assurance that the acquisition will be consummated on the terms currently contemplated or at all (See Note 15). Developments On February 1, 2021, the consolidated entity in which the Company has a 55% interest completed and fully placed in-service One Five Nine East 53rd Street, a Class A office and retail redevelopment of the low-rise portion of its 601 Lexington Avenue property with approximately 220,000 net rentable square feet located in New York City. On February 25, 2021, the Company commenced the development of 180 CityPoint, located in Waltham, Massachusetts. When completed, the building will consist of approximately 329,000 net rentable square feet of laboratory space. On February 25, 2021, the Company commenced the redevelopment of 880 Winter Street, located in Waltham, Massachusetts. When completed, the building will consist of approximately 224,000 net rentable square feet of laboratory space. On February 25, 2021, the Company commenced the redevelopment of The Prudential Center Observatory, a 59,000 net rentable square foot redevelopment of the top three floors of 800 Boylston Street - The Prudential Center, located in Boston, Massachusetts. On April 16, 2021, the Company removed 3625-3635 Peterson Way from its in-service portfolio following the lease expiration of the last tenant on April 15, 2021. The Company intends to demolish the building and redevelop the site at a future date. 3625-3635 Peterson Way is an approximately 218,000 net rentable square foot Class A office building located in Santa Clara, California. Disposition On December 13, 2018, the Company sold its 6595 Springfield Center Drive development project located in Springfield, Virginia. Concurrently with the sale, the Company agreed to act as development manager and guaranteed the completion of the project (See Note 9). The development project was completed during the second quarter of 2021 and, upon completion of the project, the total cost of development was determined to be below the estimated total investment at the time of sale. As a result, the Company recognized a gain on sale of real estate of approximately $7.8 million during the three months ended June 30, 2021.

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- Definition The entire disclosure for certain real estate investment financial statements, real estate investment trust operating support agreements, real estate owned, retail land sales, time share transactions, as well as other real estate related disclosures. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 970 -URI http://asc.fasb.org/topic&trid=2156125 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 978 -URI http://asc.fasb.org/topic&trid=2134977 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 976 -URI http://asc.fasb.org/topic&trid=2134846 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 974 -URI http://asc.fasb.org/topic&trid=2156429 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 972 -URI http://asc.fasb.org/topic&trid=2134617 + Details
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