Boston Properties Buys Stake in Flatiron Building

Boston Properties is in contract to buy a 27% stake in 200 Fifth Avenue which is currently owned by the joint venture of majority owner JPMorgan Asset Management and L&L Holding Co. The pending $280.2 million transaction includes $120.1 million in cash and the assumption of the $160.1 million pro-rata share of the outstanding mortgage maturing in November 2028. Upon expected closing before the end of 2022, the sale will value the 870,000-square-foot building at more than $1 billion. Currently about 93% leased, big block tenant Tiffany & Co. recently agreed to a 10-year extension to 2036 of its global headquarters, however the luxury jeweler will be downsizing for 400,000 square feet to 287,000 square feet as part of the signing.