B'field bags Beantown trophies

Real Estate Weekly, Feb 6, 2008

BOSTON, MA: Brookfield Properties Corporation has acquired the minority interest in two downtown Boston office towers in which it owned a 51% interest.

Brookfield Properties acquired the 49% stake in 53 and 75 State Street from RREEF for $477 million or $511 per square foot.

The acquisition gives Brookfield sole ownership of the two trophy towers, which in aggregate encompass 2.1 million square feet of Class A office space in Boston's financial district. The two buildings currently have a combined vacancy rate of 0.3%.

"Consolidation of ownership in 53 and 75 State Street reflects our confidence in the future of the Boston real estate market which continues to exhibit strong leasing fundamentals," said Ric Clark, president & CEO of Brookfield Properties. "This transaction underscores our belief in our ability to create additional value in these two assets which have consistently outperformed the market."

RREEF acquired a 49% interest in the two buildings from Brookfield Properties in 2001. Located in the heart of Boston's financial district, 53 State Street is a modern 40-story, 1.1 million square foot office tower.

75 State Street, located across the street, is one block from Faneuil Hall and Quincy Market.