"We're seeing the year start off with a very strong market, especially for the trophy properties," says David Begelfer, head of the Boston Chapter of the National Association of Industrial and Office Properties. "This is right in line with what we've been seeing for the last three years--an ever increasing appetite for prime investment properties here in Boston."

Jenkintown, PA-seller American Financial Realty Trust acquired the property, at One Lincoln St., in February 2004 for a record $671 per sf, or $704 million, and sold off a 30% share in the asset later that year to an affiliate of the Canadian group IPC US Income Commercial REIT. The recent sale of the Financial District office building generated about $200 million, which will be used primarily to pay off the company's debt, according to Anthony DeFazio, with American Financial.

"For us, its part of a larger strategy where we are selling off non-core assets, those that are not part of long-term customer relationships, and redeploying that capital into paying down our debt," he says, noting that the sale was part of the firm's repositioning strategy, announced in August. "That market is red hot right now. Seizing the market dynamics and unlocking shareholder value at such a favorable price is part of that strategic mission."