A desire to compete more aggressively in acquiring properties inspired the play. Allied Partners is a private real estate investment company founded in 1993. Its property holdings are valued at $1.2 billion. With Boston Properties, which is the country's second largest REIT, the joint venture was recently able to make its first purchase--Citigroup Center, a 59-story building in Midtown Manhattan.

Citigroup Center is located on the East Side of Manhattan and is home to a number of tenants such as Citigroup, O'Melveny & Myers, Kirkland & Ellis and AT Kearney. This would be Boston Properties second large deal in this area at this time. As part of a consortium, Boston Properties recently submitted a bid to purchase the net lease of the World Trade Center. Through its affiliate, Skyline Holdings LLC, Allied Partners recently arranged to purchase the tower for $725 million from Dai Ichi Life Investment Properties, a Japan-based insurer.