Regional spotlight: office-property offerings

Real Estate Alert, March 31, 2004

LOS ANGELES AREA

* The city, which has consistently attracted one of the country's most diversified buyer pools, has seen an increasing number of European players scouting "core" offices.

* Many opportunistic players are targeting underperforming properties suitable for renovation or repositioning. Their activity has helped raise the Class-C occupancy rate to 88.8%, up from 87.2% at yearend 2002.

On the Market                      Seller

Colorado Center, Santa Monica      Tishman Speyer partnership
Union Bank Building, Los Angeles   Walton Street Capital
Trident Center, West Los Angeles   Manatt Phelps, Mitchell Silberberg
Arboretum Gateway, Santa Monica    Commonwealth Atlantic
Maple Plaza, Beverly Hills         Realtech Development

                                                       Estimated
                                                         Value

                                   Hit            SF
On the Market                      Market      (000)     ($Mil.)

Colorado Center, Santa Monica      March       1,187        $475
Union Bank Building, Los Angeles   January       646         145
Trident Center, West Los Angeles   November      350         100
Arboretum Gateway, Santa Monica    December      200          98
Maple Plaza, Beverly Hills         December      281          97

                                   Estimated
                                     Value

On the Market                       (Per SF)   Broker

Colorado Center, Santa Monica           $400   Secured Capital
Union Bank Building, Los Angeles         225   Lehman Brothers
Trident Center, West Los Angeles         286   Eastdil Realty
Arboretum Gateway, Santa Monica          490   Lazard Freres
Maple Plaza, Beverly Hills               345   Secured, Cushman

Recent Deals                      Buyer

601 South Figueroa, Los Angeles   DIFA
  (80% stake)
777 South Figueroa, Los Angeles   Commonwealth Partners, Calpers
700 South Flower, Los Angeles     Cargill Financial
Arboretum Gateway, Santa Monica   Commonwealth Atlantic
Maple Plaza, Beverly Hills        David Wilstein

                                                       Sales
                                                       Price

                                                 SF
Recent Deals                      Closed      (000)   ($Mil.)

601 South Figueroa, Los Angeles   (Pending)   1,039      $259
  (80% stake)
777 South Figueroa, Los Angeles   (Pending)   1,004       250
700 South Flower, Los Angeles     March       1,028       130
Arboretum Gateway, Santa Monica   December      200        98
Maple Plaza, Beverly Hills        December      281        97

                                   Sales
                                   Price

Recent Deals                      (Per SF)   Broker

601 South Figueroa, Los Angeles       $312   (None)
  (80% stake)
777 South Figueroa, Los Angeles        250   (None)
700 South Flower, Los Angeles          126   Kennedy Wilson
Arboretum Gateway, Santa Monica        490   Lazard Freres
Maple Plaza, Beverly Hills             345   Secured, Cushman

NORTHERN VIRGINIA

* Herndon, which was crushed by the dot-corn implosion, is showing signs of a turnaround. The occupancy rate has climbed by six points from the recent low, but still is only 73.8%.

* Leasing demand marketwide is expected to be strong from government contractors, especially those tied to homeland security and defense needs. But with 1.7 million sf of new space scheduled to come on line this year, the occupancy rate may still fall from the current 84.6%.

On the Market                          Seller

Tycon Courthouse, Vienna               Walton Street, Atlantic Realty
American Center, Vienna                Prime Property Fund
10500-10750 Worldgate Drive, Herndon   Fannie Mae
Ellipse at Ballston, Arlington         New Boston Fund

                                                           Estimated
                                                             Value

                                       Hit           SF
On the Market                          Market      (000)    ($Mil.)

Tycon Courthouse, Vienna               February      442      $88
American Center, Vienna                February      322       64
10500-10750 Worldgate Drive, Herndon   February      350       61
Ellipse at Ballston, Arlington         February      197       60

                                       Estimated
                                         Value

On the Market                          (Per SF)    Broker

Tycon Courthouse, Vienna                 $200      Holliday Fenoglio
                                                     Fowler
American Center, Vienna                   200      Cassidy & Pinkard
10500-10750 Worldgate Drive, Herndon      175      Cushman & Wakefield
Ellipse at Ballston, Arlington            300      Cushman & Wakefield

Recent Deals                          Buyer                 Closed

Carlyle Gateway 1&2, Alexandria       Grosvenor Americas    (Pending)
Campus at Dulles Technology Center,   Republic Properties   January
  Herndon
5001 Eisenhower Avenue, Alexandria    Ralph Dweck group     (Pending)

                                                 Sales Price

                                      SF
Recent Deals                          (000)   ($Mil.)   (Per SF)
Carlyle Gateway 1&2, Alexandria         245     $83       $340
Campus at Dulles Technology Center,     350      61        170
  Herndon
5001 Eisenhower Avenue, Alexandria      549      55        100

Recent Deals                          Broker

Carlyle Gateway 1&2, Alexandria       Trammell Crow
Campus at Dulles Technology Center,   (None)
  Herndon
5001 Eisenhower Avenue, Alexandria    (None)