New Boston Fund Sells Office Building for $6.25 Million; Boston Real Estate Firm Reaps Significant Cash Flow with Sale of Three-Story Office Building in Stoneham, Mass.

Business Editors

BOSTON--(BUSINESS WIRE)--Oct. 29, 2003

New Boston Fund, a Boston-based real estate investment, development and management firm, today announced that it has sold a three-story office building in Stoneham, Mass., to Everest Partners for $6.25 million, realizing a significant profit over the six-year hold period.

New Boston Fund acquired the building, located at 91 Montvale Ave., in October 1997 for $5 million from the Teachers Insurance and Annuity Association.

"The building was a solid investment for us, generating very healthy cash returns over the life of the investment," said New Boston Fund President Jerry Rappaport Jr. "We are selling it for well above the acquisition price into a market where investors are searching for stable, well located assets."

The 50,648-square-foot Class A building sits on 1.89 acres of land directly off Interstate 93 and is situated 10 miles north of Boston. Major tenants include Guertin Elkerton & Associates Inc., Synamics Corp., and North Shore Cataract & Laser.

New Boston Fund originally acquired the building for well below replacement cost. The building offered strong potential for appreciation, with staggered lease rollovers and existing rents well below market.

Additionally, the property is in a highly visible location that can be accessed via the Montvale Avenue exit off of Interstate 93. "The location provides easy access to Boston and other commercial markets to the north and south," noted Rappaport.

New Boston Fund acquired the Montvale Avenue building six years ago on behalf of New Boston Real Estate Investment Funds, LP III and IV. Fund IV currently owns well over $200 million of properties along the East Coast and throughout the Midwest.

New Boston Fund is actively acquiring and developing a diverse mix of assets on behalf of its newest investment fund, New Boston Real Estate Investment Fund, LP VI. Fund VI, which currently has received nearly $150 million of equity commitments, is expected to close with $350 million of total equity commitments in mid-2004. Most recently, Fund VI acquired individual office buildings in Burlington and Westwood totaling more than 200,000 square feet and offering immediate, strong cash flow to the firm's investors. Total purchase price for the two buildings was $16.1 million.

About New Boston Fund

Based in Boston, New Boston Fund is one of the fastest growing private real estate investment, development and management firms in New England. Founded in 1993 by the Rappaport family of Boston, New Boston Fund owns and manages more than 13 million square feet of commercial real estate worth more than $1.3 billion.