Princeton proves too tempting as REIT announces purchase

Real Estate Weekly, July 12, 2006

Behringer Harvard REIT I, Inc. has announced its acquisition of two office buildings in Princeton, New Jersey.

The purchase consists of two three-story buildings at 600 and 619 Alexander Road that were built in 1983 and 1985, respectively, and are situated on a 656-acre site in south Princeton. Located five miles northeast of the I-295

Loop on U.S. Highway 1 (Route 1), the buildings provide a combined total of 97,447 rentable square feet and are currently 98 percent leased.

Major tenants include Sovereign Bank; Nassau Broadcasting, a radio broadcasting company; and Wells Fargo Bank. Management and leasing of the buildings has been assigned to Trammell Crow Company.

"With its strong rent roll and close proximity to Princeton University, we expect these stabilized properties to provide predictable cash flow for our REIT investors," said Robert M. Behringer, chairman and CEO of Behringer

Harvard. "The Princeton office market has consistently outperformed surrounding markets in central New Jersey in terms of occupancy and rental rates over the past two years."

Princeton University is the social and economic driver of the region and a member of the venerable Ivy League. Employing more than 5,400, it also brings half a million visitors and $2 billion in economic activity to the area. The institution's international prestige also attracts corporate interest to this boutique market.

Princeton University owns 300 acres of developable land directly across from the buildings on Alexander Road, which is the major access road to the university from U.S. Highway 1.