The eight-story tower is home to a bevy of tenants including law firms Shaw Pittman LLP and Wilkinson Barker Knauer LLP. Boston Properties has agreed to continue providing property management and leasing services on behalf of Blue Capital, which is a subsidiary Vereins-und Westbank AG, Hamburg, Germany. "We are pleased to acquire 2300 N St. as our third property in Washington, DC," Blue Capital vice president Olaf Fortmann says. "It is an excellent long-term investment and increases our US portfolio to more than $900 million. We are delighted to retain Boston Properties as property manager."

For its part, Boston Properties will direct funds from the sale toward reducing debt. More specifically, industry insiders are assuming that the money will go toward paying down debt incurred by the REIT's $1 billion purchase of Citigroup's headquarters building on Park Ave. in New York last September. Boston Properties parted with another Washington, DC holding, One and Two Independence Square, in November in return for $345 million. The company has announced it will detail additional specifics on the use of funds during its First Quarter 2003 earnings conference call next month.