BXP, Inc. BXP recently announced that on Dec. 27, 2024, it acquired 725 12th Street property encompassing 300,000 square-feet of space in Washington, DC, for a gross purchase price of $34 million.
BXP plans to undertake the demolition and redevelopment of the property, transforming it into a premier workplace of approximately 320,000 square feet.
Located in the Central Business District of Washington, DC, this 12-story building is three blocks away from the White House and in close proximity to Metro Center Station. A large setback from 12th Street, along with frontage on 11th and G Streets, offers stunning views and the opportunity for private terraces and outdoor areas for the building clients to enjoy in the newly designed building. BXP anticipates the completion of the building by late 2028.
As part of closing process, BXP has secured a lease of around 150,000 square feet with the global law firm, McDermott Will & Emery. The lease will be for the five top floors of the future newly constructed property. Additionally, BXP is in the process of negotiating with the client for considering the majority of the remaining space.
Per Pete Otteni, EVP, co-head of the Washington, DC region of BXP, “Our extensive history of successful execution, coupled with the resources, relationships, and expertise to design, construct, and fund a world-class property that delivers on the high expectations of our clients and counterparties, were key components to successfully completing these transactions.”
BXP: In a Nutshell
BXP boasts a portfolio of Class A office assets in a few select markets of the United States. The healthy tenant demand for premier office assets and the company's ability to offer such spaces will likely drive decent leasing activity. A diverse tenant base ensures stable revenues. A healthy balance sheet bodes well for growth.
BXP has been boosting its portfolio quality through repositioning initiatives through acquisitions and the development of properties in core markets and shedding properties in non-core markets. Such moves highlight the company’s prudent capital management practices.
Shares of this Zacks Rank #3 (Hold) company have gained 14.8% over the past six months compared with the industry’s growth of 1.7%.
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Stocks to Consider
Some better-ranked stocks from the broader REIT sector are Cousins Properties CUZ and Vornado Realty Trust VNO, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Cousins Properties’ 2024 FFO per share has been raised marginally over the past two months to $2.68.
The Zacks Consensus Estimate for Vornado’s 2024 FFO per share has been raised marginally over the past two months to $2.16.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
