New Boston Fund Buys Majority Stake in St. Louis Area Office and Retail Park

Boston-Based Developer and Investor Partnering With Well-Known Local Developer The Koman Group on 875,000-Square-Foot Asset in Western Suburb Creve Coeur


BOSTON, Jan. 27, 2006 - New Boston Fund, a Boston-based real estate investment, development and management firm active along the East Coast and in the Midwest, today announced its entry into the St. Louis market, purchasing an 80 percent stake in seven Class A office and retail buildings in the prosperous suburb of Creve Coeur, Mo.

New Boston Fund bought its share of the buildings in CityPlace, a well known, mixed-use park about 10 miles west of the city, from the park`s developer, The Koman Group, of Creve Coeur. The Koman Group, a premier St. Louis area development firm founded by Bill Koman, retains a 20 percent interest in the seven buildings totaling 875,000 square feet. The deal also gives New Boston Fund an option to purchase equal shares in two additional buildings, totaling about 300,000 square feet, that Koman currently has under construction in the same park. New Boston Fund may also participate in current projects that are currently in zoning in the CityPlace marketplace.

Financial terms were not disclosed.

New Boston Fund officials said the firm struck its deal in St. Louis for two reasons: to invest in a quality project with prospects for solid returns, and to establish a lasting partnership with The Koman Group.

"We see this as a golden opportunity to partner with an outstanding developer in one of the primary Midwestern markets on one of the region`s premier suburban parks," said James Kelleher, senior vice president of acquisitions for New Boston Fund. "The Koman Group has outperformed the market for many years, and we look forward to working with the company on future purchases and developments that will generate positive returns for New Boston Fund`s institutional and high-net-worth investors."

"From our side, this deal gives us a chance to work with an entrepreneurial capital source that can help us grow," added Bill Koman, president of The Koman Group. "New Boston Fund knows how to make joint ventures work, and we know the St. Louis market as well, if not better, than anybody. This is shaping up as a very successful strategic venture for both sides."

New Boston Fund, established in 1993, maintains a 14-million-square-foot portfolio of office, industrial, residential and retail assets valued at approximately $1.5 billion. Although the bulk of its portfolio is concentrated along the East Coast, it has footholds in the Midwest in Indianapolis - 18 office and warehouse/distribution buildings, totaling more than 1 million square feet - and Cincinnati.

The Creve Coeur buildings are 93 percent leased. Office tenants include the corporate headquarters for Arch Coal Inc. and Daugherty Business Solutions; the regional headquarters for insurance brokerage firm Lockton Companies; and office sites for Microsoft Corp., Sprint Nextel and a host of other companies. The retail buildings include Provisions, a gourmet grocery store; Caf? Bellagio, a high-end restaurant; Creve Coeur Camera, a top area camera chain; and The Sound Room, a well-known area stereo shop.

CityPlace consists of a variety of buildings, ranging from two to 10 stories in height, all designed with timeless architecture and constructed with high-quality materials. The 30-acre plus park features ample green space, Wi-Fi access, fitness centers, conference areas, structured parking and a scenic lake. The park is located minutes from major transportation routes - I-64, I-70, I-170 and I-270 - in a community with 6 million square feet of space, 45,000 employees and high concentrations of companies in life sciences, information technology and health care.

The Koman Group developed CityPlace in stages, starting in the late 1980s, with the bulk of the construction taking place during the past five years. Bill Koman founded the family firm in 1991. Over the past 16 years, The Koman Group has developed more than $500 million worth of new projects in the St. Louis area, including regional headquarters for Zurich America, Kroger, Peabody Energy and the Casino Queen Development.

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 $1.5 billion.