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Going Postal

The husband of US Senator Dianne Feinstein has been selling post offices to his friends, cheap.

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The Goldman Sachs Connection

A real estate partnership created by the Goldman Sachs Group called W2005 BWH Realty LLC purchased a parcel of Postal Service land for a residential development alongside the Channel Center in September 2011. The parcel was subdivided from a larger parcel, so it had no previously assessed value as a unit. CBRE sold the postal parcel for $1 million to the entity controlled by the Goldman Sachs Group, which owns 6.6 percent of CBRE, a stake that rivals Blum Capital Partners' stake of 6.9 percent. Goldman Sachs is also a longstanding CBRE client and its co-investor in numerous ventures. Since CBRE took the entire commission of 6 percent, it appears to have represented both seller and buyer in a transaction that poses an apparent conflict of interest.

The CBRE invoice for the sale to the Goldman Sachs partnership does not list a dollar amount for the sale, nor the name of the buyer (which was obtained from deeds on file with the Boston Assessor's office).

In an email, James Allen of the Postal Service Facilities Division wrote that after paying CBRE for both of the Boston Seaport deals, facilities managers requested that CBRE change the format of its invoices to include more information.

Richard C. Blum did not respond to repeated requests for comment.

To read about Senator Feinstein's efforts in a California redevelopment project in which Blum's company was involved, see the chapter "DiFi and the Blumpire" of the e-book.

Proceeds from the sale of the e-book, Going Postal, which may be downloaded in its entirety at Amazon, go solely to the author of this report.

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