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Louis Kestenbaum & Joel Kestenbaum/Fortis Property Group Land $880M Sale in Boston
Fortis Property Group is leading the “Northeast-based private real estate investment group” that has agreed to acquire the 1 million-square-foot State Street Financial Center at 1 Lincoln Street in Boston for more than $880 million, or $880 per square foot, according to sources familiar with the sale.

The Brooklyn, NY-based Fortis, Louis Kestenbaum, Joel Kestenbaum, and a group of other New York investors are expected to close on the 36-story office tower from a joint venture led by American Financial Realty Trust (NYSE:AFR) and an affiliate of IPC US Income REIT by the end of this year or early 2007.

Fortis, Louis Kestenbaum & Joel Kestenbaum, apparently set its sights on Boston following several high-profile Dallas deals where it agreed to pay about $280 million for the three-building, 1.4 million-square-foot office complex known as Galleria Office Towers in Dallas.

The addition of State Street Financial Center will build out Fortis’ portfolio considerably. The privately held firm headed by CEO Jonathan Landau is controlled by the Kestenbaum family. Joel Kestenbaum is the son of Louis Kestenbaum. Fortis manages some 3 million square feet in commercial properties and about 454 residential units.

The group of investors joining Fortis in the Boston deal could not be learned. American Financial announced the pending sale last week, but did not identify the buyer.