New Boston Fund Sells Assets in New Hamsphire and Suburban Boston

Boston Firm Earns Significant Investment Return From Property Sales


BOSTON, March, 2004 - New Boston Fund, Inc., the premier Boston-based real estate development and investment firm, today announced the sale of 9 Townsend West in Nashua, NH and the Lowell Research Center in Lowell, MA to Everest Partners, LLC. The combined sale price was $12.75 million.

9 Townsend West is a single story, 137,000 sf office/R&D facility that is fully leased to Compuware and Adaptec, Inc. New Boston Fund purchased the building in December 1996 for $5.6 million, or $41 per square foot. The building is one of the highest quality facilities of its type in the region, and was originally acquired for well below replacement cost. Lowell Research Center, located at 847 Rogers Street in Lowell, is a 54,832 sf, two story office property that is also fully leased. New Boston Fund purchased the asset in December, 1997, for $3.5 million, or $64 psf, again a price that represented a significant discount to replacement cost.

9 Townsend West was acquired on behalf of New Boston Real Estate Investment Fund, LP III, while Lowell Research Center was owned jointly by Fund III and New Boston Real Estate Investment Fund, LP IV.

"New Boston Fund generated a significant return to our investors on the sales of these assets," said Jerry Rappaport, Jr., President of New Boston Fund. "In fact, each asset generated an IRR of greater than 20%. We are actively in the process of selling assets into the current market, and anticipate making additional sales in our core markets in the months ahead."

The firm is currently raising equity for New Boston Real Estate Investment Fund, L.P. VI which will total $350 million of equity. Fund VI pursues a balanced investment strategy combining a mix of core, value-added, and deeply discounted acquisitions with selective risk-averse development, and targets a blended rate of return of 15 to 20 percent to investors. The fund is actively acquiring real estate assets in the Eastern United States, from Boston and Hartford south to Washington, D.C. and Florida, and west to Chicago and Indianapolis.

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 in excess of $1.4 billion. New Boston Fund is also undertaking more than $150 million of development along the East Coast.