New Boston Fund Expands in Baltimore Region With Purchase of Warehouse/Distribution Center

Boston real estate firm buys warehouse/distribution facility adjacent to BWI Airport in Hanover, MD; prime location and quality of the facility viewed as key to deal


HANOVER, MD. March, 2004 - New Boston Fund, a Boston-based real estate investment, development and management firm, today announced that it has purchased 1300 Mercedes Drive, a 183,591 SF warehouse/distribution facility strategically located near BWI Airport in Hanover, MD.

New Boston Fund acquired the building for $8 million. The facility was originally constructed by Mercedes Benz in 1985 as its East Coast Parts Distribution Center and features 28-foot clear heights and leading-edge design elements. In addition, the site can accommodate over 100,000 square feet of expansion opportunities. The building is currently fully leased but is available for lease in whole or as a two-tenant property.

Jim Kelleher, Senior Vice President and Director of Acquisitions for New Boston Fund, commented that the asset`s location and quality made it an attractive acquisition. "1300 Mercedes Drive is a high quality property that is very well located. This acquisition represents New Boston Fund`s continued expansion into the Maryland market and also represents our further expansion into warehouse/distribution properties in the area."

Kelleher pointed out that the property represents an exceptional opportunity for companies seeking to serve the Mid-Atlantic and East Coast markets and offers quick access to BWI Airport and Interstate 95.

The acquisition of the Hanover property further expands New Boston Fund`s presence in the Mid-Atlantic region. New Boston Fund currently owns approximately 1 million square feet of premier office space in the Metropolitan Washington, D.C., region. The firm also recently acquired 16500 Hunters Green Parkway, a premier 824,298-square-foot warehouse/distribution facility located in Hagerstown, MD that is the home of Home Depot`s Your Own Warehouse (YOW) Distribution Center. In addition, New Boston Fund and partner Brasler Realty also recently completed the renovation of the York Business Center, a 1.5 million square-foot warehouse/distribution complex in York, PA that is home to RR Donnelley`s East Coast distribution operations. New Boston Fund now owns over 2.5 million square feet of warehouse/distribution space in the Mid-Atlantic region.

New Boston Fund is actively acquiring and developing properties on behalf of New Boston Real Estate Investment Fund, LP VI which currently has received over $200 million of equity commitments and is expected to close with $350 million of total equity commitments.

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 14 million square feet of commercial real estate worth more than $1.4 billion.

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