Boston office tower sells for $889 million

Net proceeds to pay down joint owner's debt

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A joint venture announced the recent sale of the massive State Street Financial Center in Boston, Mass., for a price of $889 million. American Financial Realty Trust, which owned 70 percent of the property, and IPC US Income REIT, which owned 30 percent, sold the 1 million-square-foot, 36-story office building to an affiliate of Fortis Property Group, a Northeast-based real estate investment firm. Net proceeds to American Financial Realty Trust from the sale -- after transaction-related expenses, debt repayment and loan defeasance costs -- are approximately $200 million, which will be used primarily to repay company debt. "The completion of the State Street sale is a cornerstone event in our repositioning plan," says Harold W. Pote, chief executive officer for American Financial Realty Trust. "This sale unlocks significant shareholder value, improves our operating metrics and enhances our financial strength." ...