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Real Estate | 6 Months Ended
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Jun. 30, 2022
Real Estate [Abstract] |
Real Estate | 3. Real Estate BXP Real estate consisted of the following at June 30, 2022 and December 31, 2021 (in thousands):
|  | June 30, 2022 |  | December 31, 2021
Land |  | $ | 5,177,647 |  |  | $ | 5,061,169 |
Right of use assets - finance leases |  | 237,488 |  |  | 237,507 |
Right of use assets - operating leases |  | 168,370 |  |  | 169,778 |
Land held for future development (1) |  | 583,700 |  |  | 560,355 |
Buildings and improvements |  | 15,242,197 |  |  | 14,291,214 |
Tenant improvements |  | 3,050,862 |  |  | 2,894,025 |
Furniture, fixtures and equipment |  | 52,207 |  |  | 51,695 |
Construction in progress |  | 593,958 |  |  | 894,172 |
Total |  | 25,106,429 |  |  | 24,159,915 |
Less: Accumulated depreciation |  | (6,077,270) |  |  | (5,883,961) |
|  | $ | 19,029,159 |  |  | $ | 18,275,954 |
_______________ (1)Includes pre-development costs. BPLP Real estate consisted of the following at June 30, 2022 and December 31, 2021 (in thousands):
|  | June 30, 2022 |  | December 31, 2021
Land |  | $ | 5,082,926 |  |  | $ | 4,964,986 |
Right of use assets - finance leases |  | 237,488 |  |  | 237,507 |
Right of use assets - operating leases |  | 168,370 |  |  | 169,778 |
Land held for future development (1) |  | 583,700 |  |  | 560,355 |
Buildings and improvements |  | 14,969,392 |  |  | 14,014,010 |
Tenant improvements |  | 3,050,862 |  |  | 2,894,025 |
Furniture, fixtures and equipment |  | 52,207 |  |  | 51,695 |
Construction in progress |  | 593,958 |  |  | 894,172 |
Total |  | 24,738,903 |  |  | 23,786,528 |
Less: Accumulated depreciation |  | (5,963,676) |  |  | (5,772,018) |
|  | $ | 18,775,227 |  |  | $ | 18,014,510 |
_______________ (1)Includes pre-development costs. Acquisition On May 17, 2022, the Company completed the acquisition of Madison Centre in Seattle, Washington for a net purchase price, including transaction costs, of approximately $724.3 million. The acquisition was completed using the proceeds from BPLP’s $730.0 million unsecured term loan (See Note 6). Madison Centre is an approximately 755,000 net rentable square foot, 37-story, LEED-Platinum certified, Class A office property. The following table summarizes the allocation of the purchase price, including transaction costs, of Madison Centre at the date of acquisition (in thousands):
Land |  | $ | 104,641 |
Building and improvements |  | 505,766 |
Tenant improvements |  | 58,570 |
In-place lease intangibles |  | 74,598 |
Above-market lease intangibles |  | 3,794 |
Below-market lease intangibles |  | (23,114) |
Net assets acquired |  | $ | 724,255 |
The following table summarizes the estimated annual amortization of the acquired in-place lease intangibles and the acquired above- and below-market lease intangibles for Madison Centre from May 17, 2022 through the remainder of 2022 and each of the five succeeding fiscal years (in thousands):
|  | Acquired In-Place Lease Intangibles |  | Acquired Above-Market Lease Intangibles |  | Acquired Below-Market Lease Intangibles
Period from May 17, 2022 through December 31, 2022 |  | $ | 7,266 |  |  | $ | 640 |  |  | $ | 2,011 |
2023 |  | 12,200 |  |  | 1,098 |  |  | 3,442 |
2024 |  | 10,842 |  |  | 254 |  |  | 3,411 |
2025 |  | 10,770 |  |  | 254 |  |  | 3,398 |
2026 |  | 10,306 |  |  | 254 |  |  | 3,210 |
2027 |  | 9,161 |  |  | 254 |  |  | 2,805 |
Madison Centre contributed approximately $6.5 million of revenue and approximately $0.6 million of net income to the Company for the period from May 17, 2022 through June 30, 2022. Dispositions On March 31, 2022, the Company completed the sale of 195 West Street located in Waltham, Massachusetts for a gross sale price of $37.7 million. Net cash proceeds totaled approximately $35.4 million, resulting in a gain on sale of real estate totaling approximately $22.7 million for BXP and approximately $23.4 million for BPLP. 195 West Street is an approximately 63,500 net rentable square foot Class A office property. 195 West Street contributed approximately $0.4 million of net income to the Company for the six months ended June 30, 2022 and contributed approximately $0.1 million and $0.3 million of net loss to the Company for the three and six months ended June 30, 2021, respectively. 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. On April 7, 2022, the Company executed an agreement to assign its right to acquire 11251 Roger Bacon Drive to a third party for an assignment fee of approximately $6.9 million. Net cash proceeds totaled approximately $6.6 million and is reflected as Other income - assignment fee in the Company's Consolidated Statements of Operations. 11251 Roger Bacon Drive is an approximately 65,000 square foot office building situated on approximately 2.6 acres. The property was 100% leased. On June 15, 2022, the Company completed the sale of its suburban Virginia 95 Office Park properties located in Springfield, Virginia for an aggregate gross sale price of $127.5 million. Net cash proceeds totaled approximately $121.9 million, resulting in a gain on sale of real estate totaling approximately $96.2 million for BXP and approximately $99.5 million for BPLP. Virginia 95 Office Park consists of eleven Class A office/flex properties aggregating approximately 733,000 net rentable square feet. Virginia 95 Office Park contributed approximately $1.0 million and $2.3 million of net income to the Company for the period from April 1, 2022 through June 15, 2022 and the period from January 1, 2022 through June 15, 2022, respectively, and contributed approximately $1.9 million and $4.1 million of net income to the Company for the three and six months ended June 30, 2021, respectively. Developments On April 27, 2022, the Company entered into a 15-year lease agreement with AstraZeneca for approximately 570,000 net rentable square feet at the Company’s 290 Binney Street future development project. 290 Binney Street is part of the initial phase of a future life sciences development project located in the heart of Kendall Square in Cambridge, Massachusetts. The full project will consist of two buildings aggregating approximately 1.1 million rentable square feet of life sciences space and an approximately 400,000 square foot residential building. The lease and commencement of construction are subject to various conditions, some of which are not within the Company’s control. There can be no assurance that the conditions will be satisfied or that the Company will commence the development on the terms and schedule currently contemplated or at all. On April 29, 2022, the Company partially placed in-service 2100 Pennsylvania Avenue, a Class A office project with approximately 480,000 net rentable square feet located in Washington, DC. On May 13, 2022, the Company commenced the development of Reston Next Office Phase II, a Class A office project located in Reston, Virginia. When completed, the building will consist of approximately 90,000 net rentable square feet. On June 29, 2022, the Company completed and fully placed in-service 325 Main Street, a Class A office project with approximately 414,000 net rentable square feet located in Cambridge, Massachusetts.

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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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