NU Online News Service, June 3, 11:45 a.m. EDT

American International Group has reached an agreement to sellits 66-story Manhattan headquarters tower and another nearbyskyscraper, a source said.

At the same time a real estate fund announced the sale ofanother AIG building covering 235,000-square-feet located inRidgefield Park, N.J. No price was announced for any of thesales.

David Monfried an AIG spokesman would not comment on thesale.

The buyer was rumored to be from outside the U.S. and the pricein the vicinity of $100 million.

Closing of the sale of the 70 Pine Street headquarters and 72Wall Street office is expected at the end of the summer. Thecompany is at work on plans to move its employees into buildings itowns at 180 Maiden Lane and 175 Water Street, it was learned. Allof the buildings are located in lower Manhattan.

Under the prospective sale agreement, AIG will have the right tooccupy 72 Wall St. until the end of 2009, and 70 Pine St. until theend of 2010. The two buildings had been up for sale for sixmonths.

AIG, since it began selling properties and businesses to payback billions in taxpayer bailout monies, has announced between $5billion and $6 billion in deals. The transactions have involvedcompanies and real estate throughout the world, includingArgentina, Japan and the United Kingdom.

The company has also given the government a 79.9 percentinterest in the company in exchange for lines of credit andTroubled Asset Relief Program money. AIG first began securinggovernment aid in September 2008.

The announcement of the New Jersey property sale at 85Challenger Road was made by KABR Real Estate Investment Partners,LLC. The vacant building was formerly occupied by AIGAssurance.

KABR--a newly formed fund that includes Kenneth Pasternak,former chief executive officer of Knight Trading--said its purchasewas brokered by Cushman & Wakefield's Metropolitan Area CapitalMarkets Group

Mr. Pasternak said the purchase is "a terrific Class A officebuilding that came onto the market at the right time for the rightprice."

The building is located at the junction of Route 46, I-80 andthe New Jersey Turnpike, and KABR said it has a historic occupancyrate of more than 90 percent.

"We've already received a number of tenant inquiries becausethey know we can provide a better space in a better location at abetter value," said Laurence Rappaport, KABR managing partner."That's exactly what shareholders and CEOs are looking for in thisenvironment."

"AIG made the right decision to return this building to thedeveloper market following its foreclosure," said Cushman &Wakefield's Andrew Merin.

Mr. Merin said his firm received 17 bids on the offering, "whichgenerated a highly competitive process, particularly consideringthe current investment climate."