Boston Properties Inc. will be growing its holdings in Los Angeles in the wake of its initial success in the market, CEO Owen Thomas said on an Aug. 2 earnings call.
"Growing L.A. [exposure] is a priority for us. ... We have been looking and studying a number of new investments. Some have been offered by intermediaries ... and some are more private discussions," Thomas said.
The potential investments include both acquisitions and development- and redevelopment-oriented projects, Thomas added.
The real estate investment trust moved into the market in 2016 via the acquisition of a 49.8% stake in Colorado Center, in Santa Monica. The company is tracking "a little under half a dozen" opportunities in the market, most if not all of them in West Los Angeles — the boundaries of which Thomas described as "Santa Monica, Beverly Hills, Hollywood, El Segundo" — rather than downtown, where a commercial property revival has been underway for the last couple of years.
"We're not trying to grow just for growth's sake," Thomas said. "In addition to growing, we want to make money for shareholders in the process. And we feel we did that on Colorado Center, and that's our bar for new investments."
Outside of Los Angeles, Boston Properties' operations are concentrated in and around the Boston; New York; San Francisco; and Washington, D.C., markets.