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Previous: CORNERSTONE PROPERTIES INC, SC 13D/A, 1997-08-22 |
Next: WRIGHT MANAGED EQUITY TRUST, N-30D, 1997-08-22 |
<PAGE> 1
================================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
AUGUST 18, 1997 (DATE OF EARLIEST EVENT REPORTED)
CORNERSTONE PROPERTIES INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
<TABLE>
<S> <C> <C>
NEVADA 0-10421 74-2170858
(STATE OR OTHER JURISDICTION
OF (COMMISSION (IRS EMPLOYER
INCORPORATION) FILE NUMBER) IDENTIFICATION NO.)
</TABLE>
CORNERSTONE PROPERTIES INC.
126 EAST 56TH STREET
NEW YORK, NY 10022
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
(212) 605-7100
(REGISTRANT'S TELEPHONE NUMBER,
INCLUDING AREA CODE)
================================================================================
<PAGE> 2
ITEM 5. OTHER EVENTS
The Press Release issued by the Registrant, dated August 18, 1997, a copy
of which is included with this Form 8-K as Exhibit 99 and Supplemental
Information to the Press Release, is incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
Exhibit 99 -- Press Release, dated August 18, 1997.
-- Supplemental Information to the Press Release
<PAGE> 3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
CORNERSTONE PROPERTIES INC.
(Registrant)
By: /s/ JOHN S. MOODY
------------------------------------
John S. Moody, President and
Chief Executive Officer
Date: August 21, 1997
By: /s/ THOMAS P. LOFTUS
------------------------------------
Thomas P. Loftus, Vice President
and Controller
(Principal Financial Officer)
Date: August 21, 1997
<PAGE> 1
EXHIBIT 99
CORNERSTONE PROPERTIES INC.
AND DUTCH INSTITUTIONAL HOLDING COMPANY, INC.
AGREE TO MERGE THEIR TROPHY OFFICE PORTFOLIOS
NEW YORK, NEW YORK AUGUST 18, 1997 -- Cornerstone Properties Inc. (NYSE:
CPP) and Dutch Institutional Holding Company, Inc. (DIHC) announce that they
have entered into a definitive agreement for the acquisition by Cornerstone
Properties Inc. of interests in up to nine high-quality office buildings
totaling 4.5 million square feet. The properties are located in the Atlanta,
Boston, Charlotte and Washington, D.C. markets and are 96% leased.
DIHC, the U.S. real estate subsidiary of the Dutch pension fund
Pensioenfonds PGGM, will sell its interests in the properties. Total
consideration will be US$1.055 billion through a combination of approximately
34.2 million shares of Cornerstone common stock priced at $16.00 per share
(totaling $547 million of equity), $250 million in purchase money mortgage debt
and $258 million in cash. Pricing of the transaction was established as of a
reference date of June 18, 1997. After closing, PGGM will become Cornerstone's
largest investor. The 1998 net operating income (NOI) before depreciation and
amortization for the DIHC portfolio on a GAAP basis is anticipated to be $99.1
million which includes a $6.1 million increase for straight line rent
adjustment. The anticipated 1998 NOI for the DIHC portfolio will result in a
minority interest adjustment of $3 million. The transaction contains a provision
for adjustment for any portion of the portfolio which is not included in the
final closing.
Mr. Robert T. Sorrentino, Executive Vice President and Chief Financial
Officer of DIHC said, "This transaction is consistent with our objective of
converting our U.S. real estate investment from ownership of individual
properties to an investment in a successful real estate operating company. We
share Cornerstone Properties' philosophy of investing in high-quality assets in
major markets and look forward to a long and productive relationship with the
Company."
John S. Moody, President and CEO of Cornerstone Properties, said, "We are
very pleased to have been selected by DIHC for this transaction. We believe this
represents an outstanding opportunity to unite two of this country's finest
office building portfolios and moves Cornerstone Properties well down the road
toward achieving our objective of becoming a preeminent owner and operator of
top quality office buildings generating superior risk-adjusted returns. The DIHC
portfolio represents a perfect complement to Cornerstone's existing portfolio
providing similar high quality and increased geographic diversification. The
combined entity will own up to 17 office buildings including 9.5 million square
feet in some of the nation's strongest office markets."
The announcement follows completion of due diligence and the approval of
the transaction by the respective Boards of Directors of Cornerstone and DIHC.
Closing is subject to the approval of the shareholders of Cornerstone Properties
and other customary closing conditions and is expected to occur prior to year
end.
Cornerstone Properties completed a $166.5 million private placement of
stock to institutional investors in November, 1996 and a $225 million U.S. IPO
in April of this year.
Cornerstone Properties is a self-administered equity real estate investment
trust (REIT) investing exclusively in Class A office properties in prime
locations in major metropolitan areas and central business districts. The
Company, through its subsidiaries, currently owns eight Class A office
properties throughout the United States comprising nearly 5 million rentable
square feet. Headquartered in New York City, the Company's stock is traded on
the New York Stock Exchange under the ticker symbol CPP.
The matters described herein contain forward-looking statements that are
made pursuant to the Safe Harbor provisions of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements involve a number of risks,
uncertainties or other factors beyond the Company's control which may cause
material differences in actual results, performance or other expectations. These
factors include, but are not limited to, economic and real estate industry
conditions, leasing risk, rollover risk, tenant credit risk, interest rate risk,
and other factors detailed in the Company's registration statement and periodic
reports filed with the Securities & Exchange Commission.
<PAGE> 2
CORNERSTONE PROPERTIES INC.
SUPPLEMENTAL INFORMATION TO
DIHC ACQUISITION
- PROPERTY FACT SHEET
<PAGE> 3
CORNERSTONE PROPERTIES INC.
126 East 56th Street * New York, NY 10022
212-605-7100 * 212-605-7199 (fax) * www.cstoneprop.com
<TABLE>
<S> <C> <C> <C> <C>
[PHOTO] [PHOTO] [PHOTO] [PHOTO] [PHOTO]
191 PEACHTREE STREET 200 GALLERIA 500 BOYLSTON STREET 222 BERKELEY STREET CHARLOTTE PLAZA
Atlanta, GA Atlanta, GA Boston, MA Boston, MA Charlotte, NC
Completed: 1991 Completed: 1985 Completed: 1988 Completed: 1991 Completed: 1982
1,220,930 sq. ft. NRA 432,698 sq. ft. NRA 714,636 sq. ft. NRA 531,184 sq. ft. NRA 612,728 sq. ft. NRA
Johnson & Burgee Smallwood, Reynolds Johnson & Burgee Robert A.M. Stern Jarvis Putty Jarvis
Design Architect Design Architect Design Architect Design Architect Design Architect
Cousins/Hines Trammell Crow Gerald D. Hines Gerald D. Hines Trammell Crow
Developer Developer Developer Developer Developer
Wachovia Bank; King & Liberty Mutual Group Massachusetts Houghton Mifflin First Union;
Spalding; Powell, Goldstein Financial Services; Saga International Aetna Casualty;
et al; Johnson & Higgins The New England Holidays Parker Poe
</TABLE>
<PAGE> 4
CORNERSTONE PROPERTIES INC.
126 East 56th Street * New York, NY 10022
212-605-7100 * 212-605-7199 (fax) * www.cstoneprop.com
<TABLE>
<S> <C> <C> <C>
[PHOTO] [PHOTO] [PHOTO] [PHOTO]
MARKET SQUARE 11 CANAL CENTER 99 CANAL CENTER TRANSPOTOMAC PLAZA 5
Washington, D.C. Alexandria, VA Alexandria, VA Alexandria, VA
Completed: 1990 Completed: 1986 Completed: 1986 Completed: 1983
688,709 sq. ft. NRA 70,365 sq. ft. NRA 137,945 sq. ft. NRA 96,139 sq. ft. NRA
Hartman, Cox CHK Architects CHK Architects Weihe Design Group
Design Architect Design Architect Design Architect Design Architect
Trammell Crow Savage Fogarty Savage Fogarty Savage Fogarty
Developer Developer Developer Developer
Fulbright & Jaworski; Robins Gioia Lowe, Price Onyx Group;
Edison Electric Institute LeBlanc & Becker Larson & Taylor
Howard, Needles
Tannen & Bergendoff
</TABLE>
<PAGE> 5
CORNERSTONE PROPERTIES INC.
SUPPLEMENTAL INFORMATION TO
DIHC ACQUISITION
- TABLE OF PROPERTIES
<PAGE> 6
CORNERSTONE PROPERTIES INC.
TABLE OF PROPERTIES
AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
REMAINING
COMPANY'S NUMBER AVERAGE
YEAR ACQUIRED/ PERCENT TOTAL RENTABLE OCCUPANCY OF LEASE TERM
PROPERTY NAME AND LOCATION YEAR CONSTRUCTED INTEREST SQUARE FEET RATE TENANTS (IN YEARS)
- --------------------------- ---------------- --------- -------------- --------- ------ ----------
<S> <C> <C> <C> <C> <C> <C>
CURRENT PROPERTIES:
One Norwest Center
Denver, Colorado....... 1983 100% 1,188,000 98% 44 9.6
Norwest Center(1)
Minneapolis,
Minnesota.............. 1988 50% 1,118,000 100% 36 12.8
Washington Mutual
Tower(2)(3)
Seattle, Washington.... 1988 50% 1,155,000 98% 126 4.8
125 Summer Street
Boston,
Massachusetts.......... 1995/1989 100% 464,000 90% 29 3.3
Tower 56(4)
New York, New York..... 1996/1983 100% 162,000 95% 45 3.3
One Lincoln Centre(5)
Oakbrook Terrace, IL... 1996/1986 100% 297,000 94% 42 2.7
The Frick Building(5)
Pittsburgh, PA......... 1996/1902 100% 341,000 87% 70 3.7
No. 527 Madison(6)
New York, New York..... 1997/1986 100% 216,000 96% 19 5.4
--- --------- --- --- ----
Total Weighted Average
Current Properties....... 77% 4,941,000 97% 411 7.4
=== ========= === === ====
<CAPTION>
PROPERTY NAME AND LOCATION LARGEST TENANT
- --------------------------- ---------------------------
<S> <C>
CURRENT PROPERTIES:
One Norwest Center
Denver, Colorado....... Norwest Bank Denver N.A.
Newmont Gold Company
Teletech, Inc.
Norwest Center(1)
Minneapolis,
Minnesota.............. Norwest Corporation
Faegre & Benson
KPMG Peat Marwick
Washington Mutual
Tower(2)(3)
Seattle, Washington.... Perkins Coie
Washington Mutual
Karr Tuttle Campbell
125 Summer Street
Boston,
Massachusetts.......... Deloitte & Touche
BTM Capital Corp.
Burns & Levinson
Tower 56(4)
New York, New York..... ICC Associates, L.P.
United Bank of Kuwait
One Lincoln Centre(5)
Oakbrook Terrace, IL... Superior Bank FSB
Microsoft Corporation
Arthur Andersen L.L.P.
The Frick Building(5)
Pittsburgh, PA......... Meyer, Darragh, Buckler,
Bebenek & Eck
Sable, Makaroff & Gudsky
No. 527 Madison(6)
New York, New York..... The Sumitomo Trust &
Banking Co., Ltd.
W.P. Stewart Co., Inc.
Hill Samuel New York, Inc.
Total Weighted Average
Current Properties.......
</TABLE>
- ---------------
(1) While the Company's stated interest in the partnership which owns Norwest
Center is 50%, it receives a priority distribution of 7% on its invested
capital base of $92.3 million prior to the sharing of cash flow equally with
its partners. Additionally, upon the sale of the building, the Company is
entitled to receive its capital bases as a priority distribution out of
proceeds prior to any sharing of proceeds. For the six months ended June 30,
1997, the Company's share of earnings from the Property was 78.28%. The
Company also has the right, exercisable in its sole discretion, to become
managing general partner of the partnership.
(2) Includes the Galland and Seneca Buildings.
(3) While the Company's stated interest in the partnership which owns Washington
Mutual Tower is 50%, it receives two priority distributions on its invested
capital base: 9.53% on its first $47.0 million of capital base investment in
the Property and 8% on the next $100.0 million. Additionally, upon the sale
of the building, the Company will receive the first $147.0 million of
proceeds as a priority distribution before any sharing with its partners.
For the six months ended June 30, 1997, the Company received 100% of the
cash flow from the partnership which owns Washington Mutual Tower. The
Company also has the right, exercisable in its sole discretion, to become
managing general partner of the partnership.
(4) The Company's headquarters are located at Tower 56.
(5) Property acquired by the Company in November 1996.
(6) Property acquired by the Company in February 1997.
<PAGE> 7
CORNERSTONE PROPERTIES INC.
TABLE OF PROPERTIES
DIHC PROPERTIES
AS OF JUNE 30, 1997
<TABLE>
<CAPTION>
REMAINING
COMPANY'S NUMBER AVERAGE
YEAR ACQUIRED/ PERCENT TOTAL RENTABLE OCCUPANCY OF LEASE TERM
PROPERTY NAME AND LOCATION YEAR CONSTRUCTED INTEREST SQUARE FEET RATE TENANTS (IN YEARS) LARGEST TENANT
- ------------------------------- ---------------- --------- -------------- --------- ------- ---------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
ADDITIONAL PROPERTIES:
191 Peachtree Street(1)
Atlanta, Georgia........... 1991 80% 1,221,000 95% 37 8.7 Wachovia Bank;
King &
Spalding;
Powell,
Goldstein,
Frazer &
Murphy
Market Square(2)
Washington, D.C............ 1990 60% 689,000 91% 46 7.7 Fulbright &
Jaworski;
Edison
Electric
Institute;
Reid & Priest;
Shearman &
Sterling
500 Boylston Street(3)
Boston, Massachusetts...... 1988 92% 715,000 100% 16 6.6 Massachusetts
Financial
Services; The
New England;
Towers Perrin
222 Berkeley Street(3)
Boston, Massachusetts...... 1991 92% 531,000 100% 31 7.0 Houghton
Mifflin; Saga
International
Holidays;
Oracle
Corporation
Charlotte Plaza
Charlotte, North
Carolina................... 1982 100% 613,000 99% 42 5.4 First Union;
Aetna; Parker
Poe
200 Galleria
Atlanta, Georgia........... 1985 100% 433,000 94% 60 3.7 Liberty Mutual
Group
11 Canal Center
Alexandria, Georgia........ 1986 100% 70,000 96% 6 7.9 Robbins Gioa;
Veda Inc.
99 Canal Center
Alexandria, Virginia....... 1986 100% 138,000 98% 18 4.0 Low, Price,
LeBlanc &
Becker;
Howard,
Needles,
Tannen &
Bergendoff;
National
District
Attorney's
Association
TransPotomac Plaza 5
Alexandria, Virginia....... 1983 100% 96,000 93% 12 3.8 Clean Sites;
Troy
--- --------- --- --- ---
Systems, Inc.;
Cities in
Schools
Total Weighted Average
Additional Properties........ 86% 4,506,000 96% 268 6.8
--- --------- --- --- ---
Total Weighted Average Total
Properties................... 81% 9,447,000 96% 679 7.1
=== ========= === === ===
</TABLE>
- ---------------
(1) While Cornerstone's stated interest in the partnership which owns 191
Peachtree Street will be 80%, its economic interest will be significantly
larger since it will acquire the first mortgage note in the amount of $145
million on the property which earns interest at 9.35% and receive a priority
distribution on its acquired capital base. During 1996, the partners in the
transaction, CH Associates, LTD, received a $250,000 priority distribution,
which they will receive under the partnership agreement through February 28,
2000, with Cornerstone's predecessor receiving the remainder.
(2) While Cornerstone's stated interest in the partnerships which own Market
Square is 60%, its economic interest is significantly larger since it will
acquire the first mortgage note in the amount of $181 million on the
property which earns interest at 9.875% and receive a priority distribution
on its acquired capital base. During 1996, Cornerstone's predecessor
received 100% of the cash flow from the property.
(3) Distributions of cash flow, sales and refinancing proceeds will be in
accordance with the partnership ownership interests of 91.5% to Cornerstone
and 8.5% to Hines.
<PAGE> 8
CORNERSTONE PROPERTIES INC.
SUPPLEMENTAL INFORMATION TO
DIHC ACQUISITION
- TOP TEN TENANTS
<PAGE> 9
CORNERSTONE PROPERTIES INC.
TOP TEN TENANTS
AS OF JUNE 30, 1997
BEFORE DIHC ACQUISITION
<TABLE>
<CAPTION>
FULL SERVICE
STRAIGHT-LINE RENT
-----------------------
STRAIGHT-LINE PERCENT SCHEDULED LEASE
TENANT RENT RECOVERIES AMOUNT OF TOTAL EXPIRATION DATE
- ------------------------------------- ------------- ----------- ------------ -------- ------------------
<S> <C> <C> <C> <C> <C> <C>
Norwest Corporation(1)(3)............ $ 20,512,000 $10,717,000 $ 31,229,000 23% Jan-99 14,000
Aug-01 7,000
Jul-03 143,000
Jul-13 402,000
Aug-18 451,000
1,017,000
Faegre & Benson(1)(4)................ 3,492,000 3,097,000 $ 6,589,000 5% Dec-97 21,000
Sep-03 175,000
196,000
Perkins Coie(2)...................... 5,177,000 425,000 $ 5,602,000 4% Jul-97 6,000
Jul-98 7,000
Jul-04 199,000
212,000
Deloitte & Touche(2)................. 4,695,000 515,252 $ 5,210,252 4% Oct-99 121,000
The Sumitomo Trust & Banking Co.,
Ltd.(2)............................ 4,334,000 559,000 $ 4,893,000 4% Oct-01 78,000
Washington Mutual(2)................. 3,231,000 285,000 $ 3,516,000 3% Feb-03 16,000
Aug-03 21,000
Apr-07 138,000
175,000
Burns & Levinson(2).................. 2,896,000 386,000 $ 3,282,000 2% Mar-00 85,000
KPMG Peat Marwick(1)................. 1,831,000 1,203,000 $ 3,034,000 2% Aug-09 75000
BTM Capital Corporation(2)(5)(6)..... 2,513,000 130,000 $ 2,643,000 2% Aug-97 3,000
Jul-02 91,000
94,000
Newmont Gold Company(7).............. 1,294,000 700,000 $ 1,994,000 1% Jan-99 23,000
Jan-04 94,000
117,000
--
----------- ----------- -----------
$ 49,975,000 $18,017,252 $ 67,992,252 51%
=========== =========== =========== ==
Total Portfolio............. $ 102,267,000 $31,165,000 $133,432,000
=========== =========== ===========
</TABLE>
- ---------------
(1) Net Lease.
(2) Gross Lease.
(3) Norwest Corporation includes Norwest Corporation and Norwest Bank Denver
N.A.
(4) In April, 1997 the Company amended and extended its lease with Faegre and
Benson, based on their extension option, on 174,680 square feet of space at
a rate of $13.64 through September 30, 2003. The $13.64 rate will take
effect September 30, 1998.
(5) BTM Capital Corporation has contracted to expand into 21,308 square feet to
be delivered to tenant no later than August 1, 1997 at a gross rate of
$26.00 per square foot.
(6) Beginning January 15, 1997, the lease with BTM Capital Corporation adjusted
to a 1997 base year.
(7) The term on 94,000 square feet of this lease has been renewed to January
2004 from January 1999. The net base rental rate on the lease for the period
January 1999-January 2004 will be determined based on market conditions for
similar space in the Denver market. The table shows annualized straight-line
base rent of $11.11 per square foot for Newmont Gold Company, which are
indicative of the terms through January 1999.
<PAGE> 10
CORNERSTONE PROPERTIES INC.
TOP TEN TENANTS
AS OF JUNE 30, 1997
AFTER ACQUISITION OF DIHC PROPERTIES
<TABLE>
<CAPTION>
FULL SERVICE
STRAIGHT-LINE RENT
----------------------
PERCENT
STRAIGHT-LINE OF SCHEDULED LEASE
TENANT RENT RECOVERIES AMOUNT TOTAL EXPIRATION DATE
- ------------------------------------- ------------- ----------- ------------ ------- ------------------
<S> <C> <C> <C> <C> <C> <C>
Norwest Corporation(1)(3)............ $ 20,512,000 $10,717,000 $ 31,229,000 12% Jan-99 14,000
Aug-01 7,000
Jul-03 143,000
Jul-13 402,000
Aug-18 451,000
---------
1,017,000
Massachusetts Financial
Services(1)........................ 10,094,000 4,424,000 $14,518,0000 6% Feb-03 359,000
Wachovia Bank(1)..................... 8,966,000 3,451,000 $ 12,417,000 5% Dec-08 382,000
King & Spalding(1)................... 8,043,000 2,650,000 $ 10,693,000 4% Mar-06 306,000
The New England Life(1).............. 5,102,000 2,633,000 $ 7,735,000 3% Sep-08 213,000
First Union(2)(4).................... 5,664,000 1,804,000 $ 7,468,000 3% Aug-97 47,000
Dec-97 4,000
Aug-98 23,000
Dec-98 23,000
Mar-99 23,000
Aug-00 23,000
Mar-01 46,000
Aug-02 22,000
Mar-08 46,000
Mar-09 23,000
Mar-10 47,000
Mar-11 47,000
---------
374,000
Powell Goldstein Frazer &
Murphy(1).......................... 5,366,000 1,812,000 $ 7,178,0000 3% Jan-06 199,000
Faegre & Benson(1)(5)................ 3,492,000 3,097,000 $ 6,589,000 3% Dec-97 21,000
Sep-03 175,000
---------
196,000
Perkins Coie(2)...................... 5,177,000 425,000 $ 5,602,000 2% Jul-97 6,000
Jul-98 7,000
Jul-04 199,000
---------
212,000
Deloitte & Touche(2)................. 4,695,000 515,000 $ 5,210,000 2% Oct-99 121,000
--
------------ ----------- ------------ ---------
$ 77,111,000 $31,528,000 $108,639,000 41% 3,379,000
============ =========== ============ ==
Total Portfolio............. $ 196,756,000 $65,179,000 $261,935,000
============ =========== ============
</TABLE>
- ---------------
(1) Net Lease.
(2) Gross Lease.
(3) Norwest Corporation includes Norwest Corporation and Norwest Bank Denver
N.A.
(4) On June 30, 1998, 115,000 square feet currently leased to AETNA expires.
First Union has contracted to lease this space beginning September 1, 1998.
This space is included in the 374,000 square feet of space above.
(5) In April, 1997 the Company amended and extended its lease with Faegre and
Benson, based on their extension option, on 174,680 square feet of space at
a rate of $13.64 through September 30, 2003. The $13.64 rate will take
effect September 30, 1998.
<PAGE> 11
CORNERSTONE PROPERTIES INC.
SUPPLEMENTAL INFORMATION TO
DIHC ACQUISITION
- LEASE EXPIRATIONS
<PAGE> 12
LEASE EXPIRATIONS FOR THE PROPERTIES
The following table sets forth lease expirations (in square feet) for each
of the Company's Properties.
<TABLE>
<CAPTION>
Q3-Q4
PROPERTY 1997 1998 1999
- ------------------------- ---------- ------------ -----------
<S> <C> <C> <C> <C>
One Norwest Center square feet(1) 38,000 42,000 99,000
straight-lined rent(2) $ 329,000 $ 295,000 $ 883,000
straight-lined rent per sq. ft. $ 8.66 $ 7.02 $ 8.92
recoveries(3) $ 214,000 $ 246,000 $ 590,000
full service st-line rent(4) $ 543,000 $ 541,000 $ 1,473,000
full service st-line rent per
sq. ft. $ 14.29 $ 12.88 $ 14.88
% full service st-lined rent 2.52% 2.51% 6.84%
asking market rent per sq.
ft.(5) $ 18.10
no. of tenants(6) 4 8 8
Norwest Center(8) square feet 14,000 73,000(10) 61,000
straight-lined rent $ 207,000 $ 621,000 $ 1,055,000
straight-lined rent per sq. ft. $ 14.79 $ 8.51 $ 17.30
recoveries $ 211,000 $ 1,075,000 $ 947,000
full service st-line rent $ 418,000 $ 1,696,000 $ 2,002,000
full service st-line rent per
sq. ft. $ 29.86 $ 23.23 $ 32.82
% full service st-lined rent 1.06% 4.31% 5.09%
asking market rent per sq. ft. $ 32.70
no. of tenants 5 15 5
Washington Mutual Tower square feet 51,000 195,000 193,000
straight-lined rent $ 904,000 $ 4,166,000 $ 3,648,000
straight-lined rent per sq. ft. $ 17.73 $ 21.36 $ 18.90
recoveries $ 21,000 $ 356,000 $ 175,000
full service st-line rent $ 925,000 $ 4,522,000 $ 3,823,000
full service st-line rent per
sq. ft. $ 18.14 $ 23.19 $ 19.81
% full service st-lined rent 3.71% 18.12% 15.32%
asking market rent per sq. ft. $ 27.00
no. of tenants 32 29 28
125 Summer Street square feet 20,000 12,000 134,000
straight-lined rent $ 462,000 $ 288,000 $ 5,038,000
straight-lined rent per sq. ft. $ 23.10 $ 24.00 $ 37.60
recoveries $ 72,000 $ 58,000 $ 701,000
full service st-line rent $ 534,000 $ 346,000 $ 5,739,000
full service st-line rent per
sq. ft. $ 26.70 $ 28.83 $ 42.83
% full service st-lined rent 3.55% 2.30% 38.16%
asking market rent per sq. ft. $ 36.60
no. of tenants 5 6 3
Tower 56 square feet 16,000 18,000 30,000
straight-lined rent $ 690,000 $ 729,000 $ 1,228,000
straight-lined rent per sq. ft. $ 43.13 $ 40.50 $ 40.93
recoveries $ 4,000 $ 11,000 $ 18,000
full service st-line rent $ 694,000 $ 740,000 $ 1,246,000
full service st-line rent per
sq. ft. $ 43.38 $ 41.11 $ 41.53
% full service st-lined rent 10.39% 11.08% 18.66%
asking market rent per sq. ft. $ 49.70
no. of tenants 6 5 7
One Lincoln Centre square feet 22,000 56,000 41,000
straight-lined rent $ 342,000 $ 1,089,000 $ 661,000
straight-lined rent per sq. ft. $ 15.55 $ 19.45 $ 16.12
recoveries $ 188,000 $ 401,000 $ 375,000
full service st-line rent $ 530,000 $ 1,490,000 $ 1,036,000
full service st-line rent per
sq. ft. $ 24.09 $ 26.61 $ 25.27
<CAPTION>
PROPERTY 2000 2001 2002 2003 2004 2005
- ------------------------- ------------ ------------ ----------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
One Norwest Center 125,000 55,000 81,000 146,000 118,000(7)
$ 991,000 $ 592,000 $ 742,000 $ 2,115,000 $ 1,338,000
$ 7.93 $ 10.76 $ 9.16 $ 14.49 $ 11.34
$ 740,000 $ 330,000 $ 482,000 $ 890,000 $ 707,000
$ 1,731,000 $ 922,000 $ 1,224,000 $ 3,005,000 $ 2,045,000
$ 13.85 $ 16.76 $ 15.11 $ 20.58 $ 17.33
8.04% 4.28% 5.68% 13.95% 9.49%
6 5 7 1 2
Norwest Center(8) 105,000 2,000 49,000 177,000 97,000
$ 1,646,000 $ 34,000 $ 370,000 $ 2,634,000 $ 1,628,000
$ 15.68 $ 17.00 $ 7.55 $ 14.88 $ 16.78
$ 1,613,000 $ 32,000 $ 737,000 $ 2,747,000 $ 1,501,000
$ 3,259,000 $ 66,000 $ 1,107,000 $ 5,381,000 $ 3,129,000
$ 31.04 $ 33.00 $ 22.59 $ 30.40 $ 32.26
8.29% 0.17% 2.82% 13.69% 7.96%
3 1 2 1 2
Washington Mutual Tower 37,000 47,000 88,000 102,000 270,000 13,000
$ 589,000 $ 995,000 $ 1,845,000 $ 1,903,000 $ 6,482,000 $ 242,000
$ 15.92 $ 21.17 $ 20.97 $ 18.66 $ 24.01 $ 18.62
$ 27,000 $ 35,000 $ 59,000 $ 100,000 $ 481,000 $ 5,000
$ 616,000 $ 1,030,000 $ 1,904,000 $ 2,003,000 $ 6,963,000 $ 247,000
$ 16.65 $ 21.91 $ 21.64 $ 19.64 $ 25.79 $ 19.00
2.47% 4.13% 7.63% 8.03% 27.90% 0.99%
12 9 6 4 4 1
125 Summer Street 120,000 9,000 97,000 16,000 10,000
$ 4,038,000 $ 139,000 $ 2,651,000 $ 318,000 $ 275,000
$ 33.65 $ 15.44 $ 27.33 $ 19.88 $ 27.50
$ 523,000 $ 131,000 $ 171,000 $ 154,000 $ 19,000
$ 4,561,000 $ 270,000 $ 2,822,000 $ 472,000 $ 294,000
$ 38.01 $ 30.00 $ 29.09 $ 29.50 $ 29.40
30.33% 1.80% 18.77% 3.14% 1.96%
8 2 2 2 1
Tower 56 14,000 37,000 25,000 5,000 10,000
$ 581,000 $ 1,561,000 $ 1,206,000 $ 194,000 $ 424,000
$ 41.50 $ 42.19 $ 48.24 $ 38.80 $ 42.40
$ 3,000 $ 6,000 $ 12,000 $ 6,000 $ 4,000
$ 584,000 $ 1,567,000 $ 1,218,000 $ 200,000 $ 428,000
$ 41.71 $ 42.35 $ 48.72 $ 40.00 $ 42.80
8.75% 23.47% 18.24% 3.00% 6.41%
6 10 7 2 2
One Lincoln Centre 87,000 3,000 70,000
$ 1,815,000 $ 54,000 $ 1,567,000
$ 20.86 $ 18.00 $ 22.39
$ 663,000 $ 25,000 $ 634,000
$ 2,478,000 $ 79,000 $ 2,201,000
$ 28.48 $ 26.33 $ 31.44
<CAPTION>
2006
AND % OF
PROPERTY BEYOND TOTAL TOTAL
- ------------------------- ------------ ------------- -------
<S> <C> <C> <C>
One Norwest Center 461,000 1,165,000 12.81%
$ 7,225,000 $ 14,510,000 7.37%
$ 15.67 $ 12.45
$ 2,834,000 $ 7,033,000 10.79%
$ 10,059,000 $ 21,543,000 8.22%
$ 21.82 $ 18.49
46.69% 100.00%
3 44 6.48%
Norwest Center(8) 539,000 1,117,000 12.28%
$ 13,807,000 $ 22,002,000 11.18%
$ 25.62 $ 19.70
$ 8,450,000 $ 17,313,000 26.56%
$ 22,257,000 $ 39,315,000 15.01%
$ 41.29 $ 35.20
56.61% 100.00%
2 36 5.30%
Washington Mutual Tower 138,000 1,134,000 12.47%
$ 2,653,000 $ 23,427,000 11.91%
$ 19.22 $ 20.66
$ 272,000 $ 1,531,000 2.35%
$ 2,925,000 $ 24,958,000 9.53%
$ 21.20 $ 22.01
11.72% 100.00%
1 126 18.56%
125 Summer Street 418,000 4.60%
$ 13,209,000 6.71%
$ 31.60
$ 1,829,000 2.81%
$ 15,038,000 5.74%
$ 35.98
100.00%
29 4.27%
Tower 56 155,000 1.70%
$ 6,613,000 3.36%
$ 42.66
$ 64,000 0.10%
$ 6,677,000 2.55%
$ 43.08
100.00%
45 6.63%
One Lincoln Centre 279,000 3.07%
$ 5,528,000 2.81%
$ 19.81
$ 2,286,000 3.51%
$ 7,814,000 2.98%
$ 28.01
</TABLE>
<PAGE> 13
<TABLE>
<CAPTION>
Q3-Q4
PROPERTY 1997 1998 1999
- ------------------------- ---------- ------------ -----------
<S> <C> <C> <C> <C>
% full service st-lined rent 6.78% 19.07% 13.26%
asking market rent per sq. ft. $ 28.40
no. of tenants 5 12 7
Frick Building square feet 39,000 27,000 34,000
straight-lined rent $ 773,000 $ 548,000 $ 711,000
straight-lined rent per sq. ft. $ 19.82 $ 20.30 $ 20.91
recoveries $ 65,000 $ 26,000 $ 17,000
full service st-line rent $ 838,000 $ 574,000 $ 728,000
full service st-line rent per
sq. ft. $ 21.49 $ 21.26 $ 21.41
% full service st-lined rent 13.61% 9.32% 11.82%
asking market rent per sq. ft. $ 21.70
no. of tenants 15 8 11
No. 527 Madison square feet 15,000 21,000
straight-lined rent $ 764,000 $ 1,111,000
straight-lined rent per sq. ft. $ 50.93 $ 52.90
recoveries $ 109,000 $ 158,000
full service st-line rent $ 873,000 $ 1,269,000
full service st-line rent per
sq. ft. $ 58.20 $ 60.43
% full service st-lined rent 7.32% 10.64%
asking market rent per sq. ft. $ 47.70
no. of tenants 4 3
----------------------------------------------------------------------------
Total Cornerstone square feet 215,000 444,000 592,000
straight-lined rent 4,471,000 8,847,000 13,224,000
straight-lined rent per sq. ft. $ 20.80 $ 19.93 $ 22.34
recoveries 884,000 2,331,000 2,823,000
full service st-line rent $5,355,000 $ 11,178,000 $16,047,000
full service st-line rent per
sq. ft. $ 24.91 $ 25.18 $ 27.11
% full service st-lined rent 4.01% 8.38% 12.03%
cumulative % full svc st-lined
rent 4.01% 12.39% 24.42%
no. of tenants 76 86 69
<CAPTION>
PROPERTY 2000 2001 2002 2003 2004 2005
- ------------------------- ------------ ------------ ----------- ----------- ----------- ----------
<S> <C> <C> <C>
31.71% 1.01% 28.17%
12 1 5
Frick Building 74,000 9,000 31,000 53,000 11,000
$ 1,346,000 $ 237,000 $ 560,000 $ 1,022,000 $ 246,000
$ 18.19 $ 26.33 $ 18.06 $ 19.28 $ 22.36
$ 23,000 $ 4,000 $ 1,000 $ 19,000 $ --
$ 1,369,000 $ 241,000 $ 561,000 $ 1,041,000 $ 246,000
$ 18.50 $ 26.78 $ 18.10 $ 19.64 $ 22.36
22.23% 3.91% 9.11% 16.90% 3.99%
19 5 7 2 1
No. 527 Madison 9,000 78,000 22,000 8,000* 6,000
$ 392,000 $ 4,334,000 $ 802,000 $ 1,128,000 $ 277,000
$ 43.56 $ 55.56 $ 36.45 $ 141.00 $ 46.17
$ 11,000 $ 559,000 $ 14,000 $ 6,000 $ 3,000
$ 403,000 $ 4,893,000 $ 816,000 $ 1,134,000 $ 280,000
$ 44.78 $ 62.73 $ 37.09 $ 141.75 $ 46.67
3.38% 41.02% 6.84% 9.51% 2.35%
2 1 2 1 1
----------------------------------------------------------------------------
Total Cornerstone 571,000 240,000 441,000 521,000 514,000 29,000
11,398,000 7,946,000 8,941,000 8,988,000 11,246,000 794,000
$ 19.96 $ 33.11 $ 20.27 $ 17.25 $ 21.88 $ 27.38
3,603,000 1,122,000 2,096,000 3,930,000 2,699,000 27,000
$ 15,001,000 $ 9,068,000 $11,037,000 $12,918,000 $13,945,000 $ 821,000
$ 26.27 $ 37.78 $ 25.03 $ 24.79 $ 27.13 $ 28.31
11.24% 6.80% 8.27% 9.68% 10.45% 0.62%
35.66% 42.46% 50.73% 60.41% 70.86% 71.47%
68 34 36 14 12 3
<CAPTION>
2006
AND % OF
PROPERTY BEYOND TOTAL TOTAL
- ------------------------- ------------ ------------- -------
100.00%
42 6.19%
Frick Building 18,000 296,000 3.25%
$ 510,000 $ 5,953,000 3.03%
$ 28.33 $ 20.11
$ 50,000 $ 205,000 0.31%
$ 560,000 $ 6,158,000 2.35%
$ 31.11 $ 20.80
9.09% 100.00%
2 70 10.31%
No. 527 Madison 49,000 208,000 2.29%
$ 2,217,000 $ 11,025,000 5.60%
$ 45.24 $ 53.00
$ 44,000 $ 904,000 1.39%
$ 2,261,000 $ 11,929,000 4.55%
$ 46.14 $ 57.35
19.95% 100.00%
5 19 2.80%
----------------------------------------------------------------------------
Total Cornerstone 1,205,000 4,772,000
26,412,000 102,267,000
$ 21.92 $ 21.43
11,650,000 31,165,000
$ 38,062,000 $ 133,432,000
$ 31.59 $ 27.96
28.53% 100.00%
100.00% 100.00%
13 411
</TABLE>
<PAGE> 14
<TABLE>
<CAPTION>
Q3-Q4
PROPERTY 1997 1998 1999
- ------------------------- ---------- ------------ -----------
<S> <C> <C> <C> <C>
<CAPTION>
PROPERTY 2000 2001 2002 2003 2004 2005
- ------------------------- ------------ ------------ ----------- ----------- ----------- ----------
<S> <C> <C> <C>
<CAPTION>
2006
AND % OF
PROPERTY BEYOND TOTAL TOTAL
- ------------------------- ------------ ------------- -------
191 Peachtree square feet 6,000 17,000 1,000
straight-lined rent $ 164,000 $ 247,000 $ 23,000
straight-lined rent per sq. ft. $ 27.33 $ 14.53 $ 23.00
recoveries $ 12,000 $ 140,000 $ 14,000
full service st-line rent $ 176,000 $ 387,000 $ 37,000
full service st-line rent per
sq. ft. $ 29.33 $ 22.76 $ 37.00
% full service st-lined rent 0.55% 1.20% 0.11%
asking market rent per sq. ft. $ 26.00
no. of tenants 2 6 1
Market Square square feet 11,000 57,000 5,000
straight-lined rent $ 190,000 $ 1,888,000 $ 113,000
straight-lined rent per sq. ft. $ 17.27 $ 33.12 $ 22.60
recoveries $ 60,000 $ 45,000 $ 1,000
full service st-line rent $ 250,000 $ 1,933,000 $ 114,000
full service st-line rent per
sq. ft. $ 22.73 $ 33.91 $ 22.80
% full service st-lined rent 0.96% 7.40% 0.44%
asking market rent per sq. ft. $ 46.75
no. of tenants 3 5 1
500 Boylston square feet 76,000 16,000
straight-lined rent $ 2,561,000 $ 300,000
straight-lined rent per sq. ft. $ 33.70 $ 18.75
recoveries $ 946,000 $ 83,000
full service st-line rent $ 3,507,000 $ 383,000
full service st-line rent per
sq. ft. $ 46.14 $ 23.94
<CAPTION>
191 Peachtree 6,000 137,000 46,000 34,000 17,000
$ 62,000 $ 2,567,000 $ 690,000 $ 839,000 $ 297,000
$ 10.33 $ 18.74 $ 15.00 $ 24.68 $ 17.47
$ 40,000 $ 1,114,000 $ 402,000 $ 307,000 $ 171,000
$ 102,000 $ 3,681,000 $ 1,092,000 $ 1,146,000 $ 468,000
$ 17.00 $ 26.87 $ 23.74 $ 33.71 $ 27.53
0.32% 11.41% 3.38% 3.55% 1.45%
3 7 6 3 5
Market Square 50,000 89,000 10,000 11,000 13,000 174,000
$ 1,391,000 $ 3,357,000 $ 316,000 $ 431,000 $ 418,000 $5,796,000
$ 27.82 $ 37.72 $ 31.60 $ 39.18 $ 32.15 $ 33.31
$ 323,000 $ 713,000 $ 15,000 $ 99,000 $ 85,000 $1,792,000
$ 1,714,000 $ 4,070,000 $ 331,000 $ 530,000 $ 503,000 $7,588,000
$ 34.28 $ 45.73 $ 33.10 $ 48.18 $ 38.69 $ 43.61
6.56% 15.58% 1.27% 2.03% 1.93% 29.05%
7 9 4 3 2 4
500 Boylston 400,000 10,000
$10,900,000 $ 126,000
$ 27.25 $ 12.60
$ 4,792,000 $ 115,000
$15,692,000 $ 241,000
$ 39.23 $ 24.10
<CAPTION>
191 Peachtree 892,000 1,156,000 12.71%
$ 17,227,000 $ 22,116,000 11.24%
$ 19.31 $ 19.13
$ 7,953,000 $ 10,153,000 15.58%
$ 25,180,000 $ 32,269,000 12.32%
$ 28.23 $ 27.91
78.03% 100.00%
4 37 5.45%
Market Square 207,000 627,000 6.89%
$ 6,616,000 $ 20,516,000 10.43%
$ 31.96 $ 32.72
$ 2,470,000 $ 5,603,000 8.60%
$ 9,086,000 $ 26,119,000 9.97%
$ 43.89 $ 41.66
34.79% 100.00%
8 46 6.77%
500 Boylston 213,000 715,000 7.86%
$ 5,102,000 $ 18,989,000 9.65%
$ 23.95 $ 26.56
$ 2,633,000 $ 8,569,000 13.15%
$ 7,735,000 $ 27,558,000 10.52%
$ 36.61 $ 38.54
</TABLE>
<PAGE> 15
<TABLE>
<CAPTION>
Q3-Q4
PROPERTY 1997 1998 1999
- ------------------------- ---------- ------------ -----------
<S> <C> <C> <C> <C>
% full service st-lined rent 12.73% 1.39%
asking market rent per sq. ft. $ 36.30
no. of tenants 8 3
222 Berkeley square feet 4,000 20,000 50,000
straight-lined rent $ 164,000 $ 274,000 $ 824,000
straight-lined rent per sq. ft. $ 41.00 $ 13.70 $ 16.48
recoveries $ 30,000 $ 249,000 $ 682,000
full service st-line rent $ 194,000 $ 523,000 $ 1,506,000
full service st-line rent per
sq. ft. $ 48.50 $ 26.15 $ 30.12
% full service st-lined rent 1.29% 3.49% 10.05%
asking market rent per sq. ft. $ 36.30
no. of tenants 4 4 5
Charlotte Plaza(9) square feet 60,000 70,000 31,000
straight-lined rent $ 733,000 $ 1,319,000 $ 580,000
straight-lined rent per sq. ft. $ 12.22 $ 18.84 $ 18.71
recoveries $ 5,000 $ 44,000 $ 19,000
full service st-line rent $ 738,000 $ 1,363,000 $ 599,000
full service st-line rent per
sq. ft. $ 12.30 $ 19.47 $ 19.32
% full service st-lined rent 5.91% 10.92% 4.80%
asking market rent per sq. ft. $ 22.00
no. of tenants 5 7 6
200 Galleria square feet 32,000 38,000 26,000
straight-lined rent $ 457,000 $ 722,000 $ 487,000
straight-lined rent per sq. ft. $ 14.28 $ 19.00 $ 18.73
recoveries $ 5,000 $ 31,000 $ 32,000
full service st-line rent $ 462,000 $ 753,000 $ 519,000
full service st-line rent per
sq. ft. $ 14.44 $ 19.82 $ 19.96
% full service st-lined rent 5.49% 8.95% 6.17%
asking market rent per sq. ft. $ 25.85
no. of tenants 6 11 5
99 Canal Center square feet 5,000 2,000 5,000
straight-lined rent $ 46,000 $ 9,000 $ 76,000
straight-lined rent per sq. ft. $ 9.20 $ 4.50 $ 15.20
recoveries $ 2,000 $ -- $ 6,000
full service st-line rent $ 48,000 $ 9,000 $ 82,000
full service st-line rent per
sq. ft. $ 9.60 $ 4.50 $ 16.40
% full service st-lined rent 1.53% 0.29% 2.62%
asking market rent per sq. ft. $ 26.50
no. of tenants 3 1 2
11 Canal Center square feet 9,000 5,000
straight-lined rent $ 294,000 $ 103,000
straight-lined rent per sq. ft. $ 32.67 $ 20.60
recoveries $ 31,000 $ 1,000
full service st-line rent $ 325,000 $ 104,000
full service st-line rent per
sq. ft. $ 36.11 $ 20.80
% full service st-lined rent 18.52% 5.93%
asking market rent per sq. ft. $ 26.50
no. of tenants 1 1
TransPotomac 5 square feet 15,000 18,000 2,000
straight-lined rent $ 303,000 $ 337,000 $ 43,000
straight-lined rent per sq. ft. $ 20.20 $ 18.72 $ 21.50
recoveries $ 2,000 $ 1,000 $ --
full service st-line rent $ 305,000 $ 338,000 $ 43,000
full service st-line rent per
sq. ft. $ 20.33 $ 18.78 $ 21.50
<CAPTION>
PROPERTY 2000 2001 2002 2003 2004 2005
- ------------------------- ------------ ------------ ----------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
56.94% 0.87%
3 1
222 Berkeley 70,000 113,000
$ 1,327,000 $ 2,154,000
$ 18.96 $ 19.06
$ 772,000 $ 1,251,000
$ 2,099,000 $ 3,405,000
$ 29.99 $ 30.13
14.01% 22.73%
6 6
Charlotte Plaza(9) 27,000 46,000 38,000 22,000 113,000 11,000
$ 471,000 $ 784,000 $ 576,000 $ 438,000 $ 1,772,000 $ 209,000
$ 17.44 $ 17.04 $ 15.16 $ 19.91 $ 15.68 $ 19.00
$ -- $ -- $ 26,000 $ 12,000 $ 309,000 $ 77,000
$ 471,000 $ 784,000 $ 602,000 $ 450,000 $ 2,081,000 $ 286,000
$ 17.44 $ 17.04 $ 15.84 $ 20.45 $ 18.42 $ 26.00
3.77% 6.28% 4.82% 3.60% 16.67% 2.29%
5 1 5 3 3 1
200 Galleria 71,000 61,000 164,000 3,000 11,000
$ 1,548,000 $ 1,276,000 3,289,000 $ 76,000 $ 266,000
$ 21.80 $ 20.92 $ 20.05 $ 25.33 $ 24.18
$ 71,000 $ 46,000 $ 89,000 $ -- $ 282,000
$ 1,619,000 $ 1,322,000 $ 3,378,000 $ 76,000 $ 282,000
$ 22.80 $ 21.67 $ 20.60 $ 25.33 $ 25.64
19.25% 15.72% 40.16% 0.90% 3.35%
15 12 9 1 1
99 Canal Center 27,000 62,000 22,000 14,000
$ 556,000 $ 1,477,000 $ 542,000 $ 299,000
$ 20.59 $ 23.82 $ 24.64 $ 21.36
$ 13,000 $ 80,000 $ 18,000 $ 11,000
$ 569,000 $ 1,557,000 $ 560,000 $ 310,000
$ 21.07 $ 25.11 $ 25.45 $ 22.14
18.15% 49.67% 17.86% 9.89%
2 5 2 3
11 Canal Center 2,000 5,000 5,000
$ 39,000 $ 128,000 $ 115,000
$ 19.50 $ 25.60 $ 23.00
$ -- $ -- $ 1,000
$ 39,000 $ 128,000 $ 116,000
$ 19.50 $ 25.60 $ 23.20
2.22% 7.29% 6.61%
1 1 1
TransPotomac 5 2,000 15,000 27,000
$ 32,000 $ 275,000 $ 531,000
$ 16.00 $ 18.33 $ 19.67
$ -- $ -- $ 3,000
$ 32,000 $ 275,000 $ 534,000
$ 16.00 $ 18.33 $ 19.78
<CAPTION>
2006
AND % OF
PROPERTY BEYOND TOTAL TOTAL
- ------------------------- ------------ ------------- -------
<S> <C> <C> <C>
28.07% 100.00%
1 16 2.36%
222 Berkeley 271,000 528,000 5.81%
$ 4,094,000 $ 8,837,000 4.49%
$ 15.11 $ 16.74
$ 3,161,000 $ 6,145,000 9.43%
$ 7,255,000 $ 14,982,000 5.72%
$ 26.77 $ 28.38
48.42% 100.00%
6 31 4.57%
Charlotte Plaza(9) 178,000 596,000 6.55%
2,517,000 $ 9,399,000 4.78%
$ 14.14 $ 15.77
$ 2,593,000 $ 3,085,000 4.73%
$ 5,110,000 $ 12,484,000 4.77%
$ 28.71 $ 20.95
40.93% 100.00%
6 42 6.19%
200 Galleria 406,000 4.46%
$ 8,121,000 4.13%
$ 20.00
$ 290,000 0.44%
$ 8,411,000 3.21%
$ 20.72
100.00%
60 8.84%
99 Canal Center 137,000 1.51%
$ 3,005,000 1.53%
$ 21.93
$ 130,000 0.20%
$ 3,135,000 1.20%
$ 22.88
100.00%
18 2.65%
11 Canal Center 42,000 68,000 0.75%
$ 1,043,000 $ 1,722,000 0.88%
$ 24.83 $ 25.32
$ -- $ 33,000 0.05%
$ 1,043,000 $ 1,755,000 0.67%
$ 24.83 $ 25.81
59.43% 100.00%
1 6 0.88%
TransPotomac 5 10,000 89,100 0.98%
$ 263,000 $ 1,784,000 0.91%
$ 26.30 $ 20.04
$ -- $ 6,000 0.01%
$ 263,000 $ 1,790,000 0.91%
$ 26.30 $ 20.11
</TABLE>
<PAGE> 16
<TABLE>
<CAPTION>
Q3-Q4
PROPERTY 1997 1998 1999
- ------------------------- ---------- ------------ -----------
<S> <C> <C> <C> <C>
% full service st-lined rent 17.04% 18.88% 2.40%
asking market rent per sq. ft. $ 23.00
no. of tenants 3 3 1
----------------------------------------------------------------------------
TOTAL square feet 357,000 742,000 733,000
straight-lined rent $6,822,000 $ 16,204,000 $15,773,000
straight-lined rent per sq. ft. $ 19.11 $ 21.84 $ 21.52
recoveries $1,031,000 $ 3,787,000 $ 3,661,000
full service st-line rent $7,853,000 $ 19,991,000 $19,434,000
full service st-line rent per
sq. ft. $ 22.00 $ 26.94 $ 26.51
% full service st-lined rent 3.00% 7.63% 7.42%
cumulative % full svc st-lined
rent 3.00% 10.63% 18.05%
no. of tenants 103 131 94
<CAPTION>
PROPERTY 2000 2001 2002 2003 2004 2005
- ------------------------- ------------ ------------ ----------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
1.79% 15.36% 29.83%
1 1 2
----------------------------------------------------------------------------
TOTAL 756,000 720,000 866,000 971,000 684,000 247,000
$ 15,497,000 $ 19,009,000 $17,167,000 $21,132,000 $14,401,000 $7,477,000
$ 20.50 $ 26.40 $ 19.82 $ 21.76 $ 21.05 $ 30.27
$ 4,050,000 $ 3,847,000 $ 3,900,000 $ 8,844,000 $ 3,515,000 $2,084,000
$ 19,547,000 $ 22,856,000 $21,067,000 $29,976,000 $17,916,000 $9,561,000
$ 25.86 $ 31.74 $ 24.33 $ 30.87 $ 26.19 $ 38.71
7.46% 8.73% 8.04% 11.44% 6.84% 3.65%
25.51% 34.24% 42.28% 53.72% 60.56% 64.21%
102 75 71 27 21 15
<CAPTION>
2006
AND % OF
PROPERTY BEYOND TOTAL TOTAL
- ------------------------- ------------ ------------- -------
<S> <C> <C> <C>
14.69% 100.00%
1 12 1.77%
----------------------------------------------------------------------------
TOTAL 3,018,000 9,094,000 100.00%
$ 63,274,000 $ 196,756,000 100.00%
$ 20.97 $ 21.64
$ 30,460,000 $ 65,179,000 100.00%
$ 93,734,000 $ 261,935,000 100.00%
$ 31.06 $ 28.80
35.79% 100.00%
100.00% 100.00%
40 679 100.00%
</TABLE>
- ---------------
* Includes 4,605 square feet of retail space leased to the Gap at a base rent
of $871,200 and recoveries of $5,964, totalling to a full service rent of
$877,164.
(1) The total square footage expiring in any particular year.
(2) Straight-line rent is the average of all lease payments required to be made
through the term of the lease as required under Generally Accepted
Accounting Principles.
(3) The actual recovery of operating expenses as of June 30, 1997 in net lease
buildings and the recovery of operating expense escalations in gross lease
buildings.
(4) Full Service Straight-Line Rent is Straight-Line Rent plus recoveries.
(5) Asking market rent is the average initially quoted rent to prospective
tenants in each building. All market rents shown are on full service basis.
(6) The number of tenant leases expiring in each year.
(7) Newmont Gold Company has exercised its renewal option to extend its lease
from January 1, 1999 to January 1, 2004. The rate on the lease will be
determined based on market conditions based on similar space in the Denver
market. The expiring rates shown are the rates which Newmont is currently
paying on its lease.
(8) On April 15, 1997, Faegre and Benson extended its lease on a total of
174,860 square feet for a term of five years at a net rate of $13.64 per
square foot.
(9) On June 30, 1998, 115,000 square feet currently leased to AETNA expires.
First Union has contracted the lease this space beginning September 1, 1998.
This space is included in the expiration schedule above based on First
Union's occupancy.
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