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BOSTON-Two years after American Financial Realty Trust set a record for paying the highest price per square foot for a Boston building, the firm will set a record again when it sells the 36-story State Street Financial Center for more than $880 million.

The Jenkintown, PA company, which acquired the 1.1 million-sf tower at One Lincoln St. just two years ago for $705 million, has reached an agreement with an unnamed Northeast-based private real estate investment group to acquire the fully-leased office tower. The sale is expected to close in late 2006 or early 2007, according to the release.

“My God, that’s amazing. It’s an incredible price,” one broker tells GlobeSt.com of the $840 per sf deal, which will be the highest per square-foot price paid to date for a building in Boston’s CBD.

Anthony DeFazio, spokesman for American Financial, tells GlobeSt.com that the sale is part of the firm’s repositioning strategy announced earlier last month when Harold Pote, the company’s chief executive officer, announced that American Financial would dispose of $75.9 million in proceeds from the sale of 45 properties and four leasehold terminations.

Robert Griffin, with Cushman & Wakefield’s Capital Markets Group, tells GlobeSt.com that the sale validates the strength of Boston’s real estate and investment markets. “It makes perfect sense,” Griffin says. He was not involved in the transaction. “Interest rates are still low, CAP rates have crept lower and it’s a trophy building so with all those things going on, it’s going to get premium pricing.”

American Financial acquired the tower, which is fully leased to State Street Corp., from the building’s development team in 2004 for $671 per sf. At the time, the sale set a record as the highest price ever paid for a commercial building in Boston.

The building’s owner is a joint venture between American Financial and an affiliate of IPC US Income REIT. American Financial owns 70%.

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