New Boston Fund sells premier Virginia office building, gains significant investment return

Buyer Miller Global Properties cites location, quality and strong market dynamics in making key purchase


BOSTON, July 7, 2004 - New Boston Fund, a Boston-based real estate investment, development and management firm, today announced that it has sold The Ellipse, a 197,400-square-foot office building in Arlington, Va., to Miller Global Properties, LLC.
The sale was brokered on behalf of New Boston Fund by Warren Dahlstrom, senior director of Cushman & Wakefield in Washington, D.C.

New Boston Fund President Jerry Rappaport Jr. cited a strong seller`s market as well as a healthy return for investors as primary considerations for selling the Ellipse. "It`s an advantageous time to be a seller in the Washington, D.C., region," said Rappaport. "This is a stable market with a significant amount of capital and very limited buying opportunities. Those elements combined to make this the ideal time to sell. " New Boston Fund acquired the nine-story office building, which is located at 4350 North Fairfax Drive, in February 2001.

Jim Miller, president of Miller Global Properties, LLC in Denver, said he was pleased with the building`s quality and strong tenant roster.

"This is a very high quality building with a great location in one of the few markets in the country that is showing positive absorption and improvement in the marketplace with high barriers to entry," said Miller, whose firm invests in and develops high quality office buildings and hotels throughout the United States and Europe. "The Ellipse is Metro-served with abundant amenities nearby and has very strong cash flow with great upside potential."

Major tenants include Environ, Keppler Associates Inc., the Packing Machinery Manufacturers Institute, Dun & Bradstreet, and Lockheed Martin. The building is also home to Space Adventures Ltd., a leading space tourism, entertainment and event-production company.

The Ellipse is conveniently located one block away from the D.C. Metro subway in the active Rosslyn-Ballston corridor, Arlington`s strongest submarket, with convenient access to I-66, I-495 and Route 50.

New Boston Fund originally acquired the Ellipse on behalf of New Boston Real Estate Investment Fund, LP V, a $260 million private investment fund that has acquired and developed over $700 million of properties. After the sale, New Boston Fund owns nearly 2 million square feet of premier office and industrial space in Metropolitan Washington, D.C., and Maryland.

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.

About Miller Global Properties

Miller Global Properties has been developing and acquiring commercial real estate properties since its inception in 1995. Focusing primarily on hotels and office buildings, the company has been involved in 68 properties representing over $2 billion of asset value comprising 8.25 million square feet of office space and 1500 hotel rooms. The company has invested approximately $600 million of equity in 18 cities and three countries. Prior to forming Miller Global, various principals were involved in the development, management and/or ownership of such prestigious hotels and resorts as The Lodge at Pebble Beach, The Inn at Spanish Bay, Aspen`s Little Nell Hotel and The Beverly Hills Hotel.