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Norwegian bank buys stake in Boston office towers

Boston Properties has agreed to sell a 45 percent interest in its office towers at Atlantic Wharf and 100 Federal Street in Boston to the central bank of Norway.

The $1.5 billion deal, which also includes a stake in 601 Lexington in Manhattan, is the latest major sale of Boston area office properties to a foreign investor. In May, Canadian-based Oxford Properties Group purchased five towers in Boston and Cambridge for $2.1 billion.

Norway’s central bank, known as Norges Bank, has been an active investor in Boston and other urban markets across the U.S. In 2013, it also purchased a stake in One Financial Center next to South Station.

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The spurt of tower sales is being driven by rising rents in Boston, where office buildings are still seen as a bargain compared to larger markets such and London, Tokyo and New York.

The deal with Boston Properties gives Norges Bank, which manages Norway’s pension fund, a major stake in two of Boston’s most prominent office buildings. Boston Properties and Norges Bank will form a joint venture for each property upon closing, and Boston Properties will retain property and leasing management responsibilities.

Atlantic Wharf is a 791,000 square-foot tower along the Fort Point Channel. Located at 280 Congress Street, the 31-story office building was completed in 2011 and is debt-free and 100 percent leased.

100 Federal Street is a 1,323,000 square-foot tower acquired by Boston Properties in 2012. It is also debt free and 91 percent leased. Boston Properties was advised in the transaction by Eastdil Secured and the law firm Goodwin Procter.


Casey Ross can be reached at cross@globe.com.