Boston Properties buys NYC's GM Building

NEW YORK—Real estate investment trust Boston Properties Inc. said Tuesday it has completed its previously announced acquisition of the General Motors Building in New York City from affiliates of Macklowe Properties for about $2.8 billion.

The purchase price consisted of about $890 million in cash, the issuance to the Macklowe affiliates of 102,883 common units of limited partnership interest in Boston Properties L.P. and the assumption of about $1.9 billion of debt.

The acquisition was completed through a joint venture among Boston Properties; US Real Estate Opportunities I, L.P., a partnership managed by Goldman Sachs; and Meraas Capital LLC, a Dubai-based private equity firm. Boston Properties has a 60 percent interest in the venture and will manage the property.

The 50-story building has nearly 2 million square feet of rentable area at Fifth Avenue and 59th Street near the southeast corner of Central Park.