New Boston Fund Acquires Fully Leased Newspaper Headquarters Office Building

Boston real estate firm cites stable cash flow and prime location of Community Newspaper Co. building


BOSTON, June 16, 2004 - New Boston Fund, a Boston-based real estate investment, development and management firm, today announced that it has purchased 254 Second Ave., an 85,890-square-foot building in Needham, Mass., for $10.9 million.

The facility is fully leased to Community Newspaper Co., a consortium of local community newspapers and a subsidiary of The Boston Herald. The building serves as corporate headquarters for Community Newspaper Co.

The Boston Herald, Community Newspaper Co., and Herald Interactive are all companies of Herald Media, Inc. The deal was brokered by Spaulding & Slye Colliers, and the purchase price amounts to $127 per square foot.

"The lease offers stability and immediate cash flow," said Jim Kelleher, senior vice president and director of acquisitions for New Boston Fund. "We`re pleased to be able to purchase a building that is fully leased to an established news organization. The building is located just off of Route 128 on the Needham/Newton border and provides easy access for workers."

The purchase expands New Boston Fund`s portfolio in the Greater Boston area, which now totals well over 3 million square feet. The sale was conducted on behalf of New Boston Fund`s newest investment offering, New Boston Real Estate Investment Fund, LP VI . New Boston Fund is actively acquiring and developing properties on behalf of the Fund, which currently has received more than $250 million of equity commitments and is expected to close with $350 million to $400 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.