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BOSTON-New Boston Fund, Inc. a locally based real estate investment, development and management firm, is forming a new real estate investment fund, the company’s sixth since it was formed in 1993. The New Boston Real Estate Investment Fund LP VI will be a $350-million closed-end, commingled investment fund that insiders say is being organized “to take advantage of the unique opportunities that will arise in the real estate market in the next two to three years.”

A spokesperson for the company tells GlobeSt.com that the fund will look at a variety of properties, such as retail, office, R&D, warehouse/distribution and multifamily in the $5-million-to-$70-million range. Locations will cover the Northeast quadrant, including Boston, Washington DC and Chicago, and the fund will pursue acquisitions that are priced below replacement cost andthat offer both current cash flow and long-term appreciation potential. The fund will target both high net-worth and institutional investors as opposed to focusing on one or the other.

The spokesperson says that the firm’s first three funds generated 30% for its investors. The new fund is targeting a blended rate of return of 15% to 20%.

In a statement, the company emphasizes that it adheres to an investment philosophy that focuses on capital preservation and current cash flow. “Fund VI will pursue a balanced investment strategy combining a mix of core, value-added and deeply discounted acquisitions with selective risk-averse development.” Sponsors of the fund will directlyalign their interests with the fund’s investors by co-investing at least $20 million.

William McAvoy, chief investment officer for New Boston, points out that “this balanced strategy allows us to create a diverse portfolio that will generate a strong risk-adjusted rate of return while allowing us to source the best opportunities in the market. This strategy also reduces overall portfolio risk while enhancing returns by combining the stable cash flow of core acquisitions with higher yielding acquisition and developmentopportunities.”

The creation of this fund comes on the heels of the firm’s most recent investment fund, New Boston V, a $260-million fund that is currently 90% invested. Among its recent acquisitions are the Ellipse at Ballston in Arlington, VA, 280 Trumbull St. in Hartford and Rivertech Park in Billerica, MA, as well as the development of Virginia Square Plaza in Arlington, One Brigham Circle in Boston, and $100 million of warehouse/distribution space in Southeastern Massachusetts.

New Boston Fund currently owns and manages more than12 million sf of commercial real estate, including more than 300 acres of developable land, worth $1.5 billion.

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