Boston Properties/Delaware North Secure $465M Non-Recourse Mortgage for The Hub on Causeway

Boston — Boston Properties (BXP), together with its joint venture partner, Delaware North, announced the closing of a $465.0 million, 5.5-year, non-recourse mortgage loan secured by the podium and office tower at The Hub on Causeway in Boston, Massachusetts.

“We are pleased to complete this financing, which not only enhances the strength and flexibility of our balance sheet, but also demonstrates our access to attractively priced capital in the secured mortgage market,” said Mike LaBelle, Executive Vice President and Chief Financial Officer, BXP.

The loan is scheduled to mature on April 9, 2031, and bears interest at a fixed rate of approximately 5.733% per annum. Proceeds from the loan were used to repay two existing loans on The Hub on Causeway having an aggregate outstanding principal balance of approximately $490 million.

This transaction represents BXP’s first “Green Bond” mortgage financing, underscoring the quality of The Hub as a premier, sustainable workplace and highlighting BXP’s ongoing commitment to environmentally responsible development.

The Hub on Causeway is a transformative transit-oriented ecosystem featuring an office tower that is home to creative and technology leaders, retail and entertainment spaces, a boutique hotel, a luxury residential tower, and a direct entrance to TD Garden and North Station.

The financing was led by Wells Fargo Bank, N.A., Morgan Stanley Bank, N.A., and Bank of America.

Michael E. LaBelle