BOSTON — BXP (NYSE: BXP), the nation’s largest publicly traded developer, owner, and manager of premier workplaces, is continuing to reshape its portfolio with a high-profile acquisition in Washington, DC, alongside the sale of a major suburban Boston office asset.
Earlier this week, BXP announced it has completed the acquisition of 2100 M Street in Washington, DC’s West End, where it plans to demolish the existing structure and develop a new approximately 320,000-square-foot trophy office building.
Global law firm Sidley Austin LLP has signed a lease for approximately 240,000 square feet, representing 75% of the future building, and will occupy floors four through ten, including rooftop and penthouse space. BXP acquired the site for $55 million and expects construction to begin in 2028, with Sidley’s occupancy slated for 2031.
“This trophy redevelopment will contribute to the success of our clients and support the District’s overall office recovery,” said Pete Otteni, EVP and Co-Head of BXP’s Washington, DC Region, noting continued demand from law firms for high-quality, collaborative workplaces.
Sidley Austin, a nearly 160-year-old global law firm with more than 2,300 lawyers worldwide, has maintained a significant presence in Washington, DC for more than six decades. Managing Partner Kristin Graham Koehler said the new headquarters will support the firm’s continued growth and long-term commitment to the region.
Meanwhile, in suburban Boston, BXP has completed a significant office disposition.
According to reporting by the Boston Business Journal, BXP has sold 140 Kendrick Street in Needham—a roughly 409,000-square-foot, three-building office campus—for $132 million to a joint venture between Lincoln Property Co. and Cross Ocean Partners . The property, one of BXP’s largest suburban Boston office holdings, is approximately 96% leased and anchored by tenants including Wellington Management, Clarks, and Walker & Dunlop. The sale equates to roughly $320 per square foot, according to the BBJ.
The Needham asset was acquired by BXP in 1999 for $31 million and developed in 2000. The transaction represents the second joint acquisition by Lincoln Property Co. and Cross Ocean Partners, following a large Brooklyn office purchase earlier this year, the BBJ reported .
Taken together, the Washington acquisition and Needham sale underscore BXP’s ongoing strategy to recycle capital out of suburban assets while doubling down on premier, centrally located office developments in core urban markets. The company has recently pursued similar repositioning efforts in Washington, DC, including its East End redevelopment at 725 12th Street NW, which secured major law firm preleases.
As office demand continues to favor high-quality, amenitized, and well-located buildings, BXP appears increasingly focused on shaping a portfolio aligned with long-term tenant preferences and post-pandemic workplace trends.
