Koman, the developer of the 30-acre park, is retaining a 20% stake in the project as well as the ongoing development, management and leasing assignments. Financial terms were not disclosed and were not otherwise immediately available.

Located on Olive Boulevard about one mile east of Interstate 270, the CityPlace buildings range from two to 10 stories and are 93% 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. and Sprint Nextel among others. The retail buildings include the gourmet grocery store Provisions, Cafe Bellagio, Creve Coeur Camera and others. Amenities include wireless access, fitness centers, conference areas, structured parking and a lake.

Neither New Boston nor Koman executives could be reached Friday for comment. In prepared statements, New Boston says Koman Group "has outperformed the market for many years" and, therefore, expects the investment to generate "solid returns" for its stable of institutional and high-net-worth investors. The relationship may also include partnership in future Koman development projects that are still in the approval process, he says. Koman says the relationship gives the company capital with which to grow.

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. Other Koman Group projects include the regional headquarters for Zurich America, Kroger and Peabody Energy, and the Casino Queen development.

New Boston Fund, maintains a 14-million-sf portfolio of office, industrial, residential and retail assets valued at approximately $1.5 billion. The bulk of its portfolio is concentrated along the East Coast. It also owns 18 office and warehouse/distribution buildings in Indianapolis.

Instant Insights /

New Boston Fund Buys 80% Stake in Koman Group's CityPlace Project

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