Tower sold for $889M


BOSTON (AP) — The owners of State Street Financial Center, a 36-story office tower in the city’s Financial District, said Tuesday they have sold the property for $889 million to an affiliate of Fortis Property Group.

The sale was announced by American Financial Realty Trust, a Jenkintown, Pa., real-estate investment trust that owned 70 percent of the building. The remaining 30 percent had been held by IPC US Income Real Estate Investment Trust.

American Financial Realty said it expects to use about $200 million in proceeds from the sale to repay debt and strengthen the company’s bottom line.

“The completion of the State Street sale is a cornerstone event in our repositioning plan,” said Harold Pote, AFR’s chief executive.

Fortis Property Group, a Canadian firm based in St. John’s, Newfoundland, has holdings in commercial real estate, hotels and hydroelectric generation.

State Street Financial Center serves as the headquarters of State Street Corp., which provides financial services to institutional investors.