BXP Inc. BXP recently announced that it has completed the formation of a joint venture (JV) with CrossHarbor Capital and Albanese Organization and its partner. The JV has been formed to develop a 670-unit, $400 million residential project – ‘290 Coles Street’.
The move highlights BXP’s diversification efforts aimed at expanding its tenant base and yielding stable revenues.
The property will be developed on a 1.75-acre site located between Coles Street, Jersey Avenue, and 16th and 17th Streets in Jersey City, NJ. The development will feature an eight-story podium, two towers at 14 and 22 stories, parking spaces for more than 350 vehicles and ground-level retail spanning 13,000 square feet.
Strategically located in the neighbourhood of SoHo West, this residential unit will offer its residents accessibility to Hoboken Terminal, which is easily commutable by multiple modes of transit. Moreover, the unit will be equipped with various amenities serving the needs of its residents.
BXP is entitled to a 19% equity interest in the joint venture, with Albanese and CrossHarbor owning 14% and 67%, respectively. BXP will also bring in an additional $65 million preferred equity. Together, BXP and Albanese will investigate the development of the unit.
Per Hilary Spann, EVP, New York region, BXP, “The project will add highly desirable housing with standout amenities in a vibrant neighborhood. Located minutes from Manhattan, 290 Coles underscores our commitment to intelligent design, great location, and the seamless integration of living and working.”
BXP in a Nutshell
BXP has a superior track record of developing premium Central Business District office buildings, successful mixed-use complexes, suburban office centers and build-to-suit projects for a diverse array of creditworthy clients. The above development is another addition to this effect.
The company is witnessing solid leasing momentum driven by healthy tenant demand for premier office spaces. In the fourth quarter of 2024, it has signed leases totaling around 2.3 million square feet, with a weighted average lease term of 10.3 years. The company’s total leasing activity for 2024 totaled approximately 5.6 million square feet.
However, a huge development outlay raises the risks related to cost overruns and lease-up concerns. High competition affects its pricing power and rent growth momentum.
Over the past six months, shares of this Zacks Rank #4 (Sell) company have plunged 10.2% compared with the industry’s decline of 4.9%.
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Stocks to Consider
Some better-ranked stocks from the broader REIT sector are Welltower WELL and SL Green Realty SLG, 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 Welltower’s 2025 FFO per share is pinned at $4.88, which indicates an increase of 13% from the year-ago period.
The Zacks Consensus Estimate for SL Green Realty’s 2025 FFO per share is pegged at $5.52, which implies year-over-year growth of 9.7%.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.
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BXP, Inc. (BXP) : Free Stock Analysis Report
SL Green Realty Corporation (SLG) : Free Stock Analysis Report
Welltower Inc. (WELL) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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