Blackstone Group LP is reportedly in talks to sell off a large part of its office building portfolio in Boston as part of a deal worth $2.5 billion.
Inside sources told Bloomberg that Blackstone is discussing deals with several potential buyers like Oxford Properties Group, MetLife Inc and Norges Ban Investment Management to unload six prime office buildings in downtown Boston.
According to the sources, altogether the portfolio accounts for about 3.6 million square feet. The buildings include 1 Memorial Drive near Microsoft's New England research and development center and 225 Franklin Street.
However, not much is known about the deal as the talks are private and still in an early stage.
Blackstone is looking to dissolve most of its Boston-area office building that it acquired after taking over Equity Properties Office Trust in 2007 for $36 billion. The deal was the largest leveraged buyout ever at that time, according to The New York Times.
Earlier in January, the firm sold 1-3 Center Plaza in Boston for $307 million to Shorenstein Properties. Other properties sold in the region include (list courtesy: Business Journal)
- Wellesley Office Park for $237 million to Manulife Financial Corp.
- New England Executive Park in Burlington for $216 million to Charles River Investors
- 25 Mall Road in Burlington for $77.1 million to TA Associates
- Riverside Center at 275 Grove St. Newton for $197 million to Hines
- A pair of buildings in Cambridge's Kendall Square for $192.6 million to Jamestown, an Atlanta-based realty firm
More recently, Blackstone agreed to buy 49 percent stake in One Market Plaza, a major office building in San Francisco. According to Businessweek, the deal was estimated at $1.2 billion.
Blackstone is currently the largest single-family home owner in the United States. The company has "$60 billion in total assets that are under management" and "$10 billion in capital available for investments," according to CNBC.
