Sunday, November 05, 2006

State Street Financial Center in Boston to Sell For Over $880 Million

Commercial Property News - November 3, 2006

American Financial Realty Trust said today it has entered into a definitive contract to sell State Street Financial Center, a 36-story, Class A office building in Boston, for more than $880 million to an unnamed Northeast-based private real estate investment group. The price will be before defeasance and other settlement costs.

American Financial, a Jenkintown, Penn.-based REIT that acquires and leases properties to financial institutions, owns a 70 percent interest in the 1.1 million-square-foot-building at 1 Lincoln St. through a joint venture with an affiliate of IPC US Income REIT. IPC has a right of refusal but American Financial officials said in a release they expect the transaction closing to be later this year or in the first quarter of 2007. AFR had purchased the tower for $705 million in February 2004 from a joint venture that included The Gale Co. Later that year, it sold the 30 percent stake to the IPC US Income REIT affiliate. At the time of the joint venture agreement, the building was reportedly valued at $763.5 million.

The building is fully leased with State Street Corp. taking most of the space under a 20-year triple-net lease. The property also has a 900-space garage. Eastdil Secured represented AFR in the transaction. Sphere: Related Content

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