Boston Properties (BXP) is quietly testing buyer appetite for prime Midtown real estate, putting the 99‑year ground lease for 7 Times Square on the market with whispers in the $700 million to $750 million range. The full‑block, trophy office tower is expected to be shopped through the summer by Eastdil Secured, and the offering ranks among the largest single‑asset office deals to hit the market since 2020, turning the listing into a closely watched stress test for high‑end Manhattan offices.
As reported by The Real Deal, BXP is aiming for roughly $700 million to $750 million for the 1.2 million‑square‑foot leasehold and has tapped Eastdil’s Will Silverman and Gary Phillips to lead the marketing effort. The Real Deal also noted it is not yet clear whether that pricing guidance is for the entire ground lease interest or just BXP’s majority stake.
Building, tenants and revenue streams
The 47‑story tower at 7 Times Square spans about 1.2 million square feet and was completed in 2004, according to Commercial Observer. The building’s base features four floors of electronic billboards, along with owner‑funded amenities such as conference facilities, a client lounge and cafe offerings that generate additional on‑site revenue. Commercial Observer reports the property is about 91 percent leased, with roughly 100,000 square feet still available on the upper floors; recent leasing activity has included deals with Snowflake and KnitWell Group.
Ownership history
BXP currently holds the majority leasehold interest at 7 Times Square. In 2013, an affiliate of Norges Bank acquired a 45 percent stake for $684 million, implying a total property valuation of about $1.52 billion, according to a BXP press release. That joint‑venture structure means a sale of the ground lease would not resemble a straightforward fee simple trade and could involve the buyer stepping into an existing option to purchase the fee interest from the city. The ground‑lease setup adds a layer of complexity for underwriters, but the long‑dated cash‑flow profile can be appealing to certain investors.
Pricing in a shifting market
Green Street’s sale‑comps database shows only nine single‑property office transactions have exceeded $700 million since 2020, which would put 7 Times Square in a very short list if it sells near the top of the indicated range, The Real Deal reported. Prospective buyers are expected to weigh the income tied to the tower’s digital signage, its highly visible Times Square location and the remaining ground‑lease terms when sharpening their pencils on pricing. With office values in flux in the post‑pandemic era, underwriting will hinge heavily on how investors model long‑term cash flow.
Why BXP is pitching now
The offering comes as BXP continues to prune and recycle its portfolio, telling investors it is targeting about $1.9 billion in net proceeds from asset sales, according to the company’s recent earnings discussion. Benzinga published the full earnings call transcript. Commercial Observer reports that bids for the 7 Times Square ground lease are due soon and that BXP has told investors it is making solid headway on its disposition goals, framing this sale as both a capital‑raising move and a bellwether for top‑tier office pricing.
Whoever ultimately lands the lease will be wagering on Times Square’s potent mix of nonstop foot traffic, lucrative signage revenue and a marquee Manhattan address, along with a complicated lease structure that demands detailed analysis. Global institutions and specialized real‑estate players are expected to crowd the field, and where the final number lands will say plenty about how deep‑pocketed buyers view trophy Midtown office towers in 2026.
