WRIT Acquires One Central Plaza Office Building for $44 Million

Apr 19, 2001, 01:00 ET from Washington Real Estate Investment Trust

    ROCKVILLE, Md., April 19 /PRNewswire/ -- Washington Real Estate Investment
 Trust (WRIT) has acquired One Central Plaza located at 11300 Rockville Pike
 (Route 355) in North Bethesda, Maryland for $44.4 million.  One Central Plaza
 is a twelve-story building containing 274,000 rentable square feet of office
 space on eight levels and 763 parking spaces on a four-level parking garage.
 The building is 99.9% leased. At a purchase price of $162 per square foot, the
 building was acquired at a substantial discount to replacement cost.
     WRIT expects this acquisition to produce a first year return on investment
 of 10.4% on a cash basis and 11.0% on a GAAP basis.  From 2001 through 2004,
 expiring leases average only 8% of the building's square footage per year.
 However, as the rents in these leases average 24% below current market rents,
 the cash return on investment is projected to grow to 11.7% over this period.
     One Central Plaza, built in 1974, is a landmark on Rockville Pike in the
 heart of Montgomery County, Maryland. The property is located directly across
 from the entrance to White Flint Mall and two blocks south of the White Flint
 Metro Station. Leasing and operational synergies are anticipated at One
 Central Plaza as WRIT now owns eight office buildings containing a total of
 1.1 million square feet in the 17 million square foot North Bethesda/Rockville
 submarket.
 
     WRIT is a self-administered, self-managed, equity real estate investment
 trust investing in income producing properties in the greater Washington-
 Baltimore region. The Trust owns a diversified portfolio of 58 properties
 consisting of 10 retail centers, 24 office properties, 15 industrial/flex
 properties and 9 multi-family properties. WRIT shares are publicly traded on
 the New York Stock Exchange (NYSE:   WRE).
 
     Certain statements in this press release are "forward-looking statements"
 within the meaning of the Private Securities Litigation Reform Act of 1995.
 Such statements involve known and unknown risks, uncertainties and other
 factors that may cause actual results to differ materially.  Such risks,
 uncertainties and other factors include, but are not limited to, fluctuations
 in interest rates, availability of raw materials and labor costs, levels of
 competition, the effect of government regulation, the availability of capital,
 weather conditions, the timing and pricing of lease transactions and changes
 in general and local economic and real estate market conditions.
 
                              Acquisition Summary
                               One Central Plaza
                              11300 Rockville Pike
                            North Bethesda, Maryland
 
     One Central Plaza is a twelve-story office building located at 11300
 Rockville Pike in North Bethesda, Maryland. The North Bethesda/Rockville
 submarket contains 17 million square feet of office space with a 3.1% vacancy
 rate.  The property is located directly across from the entrance to White
 Flint Mall and two blocks south of the White Flint Metro station.
     The acquisition of One Central Plaza brings WRIT's total office holdings
 in the North Bethesda/Rockville submarket to 1.1 million square feet in eight
 buildings. This strong market presence provides significant synergistic
 leasing opportunities to accommodate the changing needs of the tenants in
 these properties.
 
     Year Built:             1974
 
     Occupancy:              99.9% leased to 62 tenants.
 
     Average in Place Rents: $24.34 ($22.83 for the 83,500 sf expiring
                             through 2004)
 
     Average Market Rent     $28.50
 
     Capital Improvements:   WRIT plans to invest approximately $3.6 million in
                             capital improvements to the property over the next
                             five years. Major items anticipated to be included
                             in this program include lobby, common area and
                             restroom renovations; roof, cooling tower and heat
                             pump unit replacements; and installation of a new
                             energy management system.
 
     Parking:                Approximately 763 spaces (2.8 spaces per 1,000 sf)
 
     Purchase Price:         $44.4 million ($162.04 psf), cash.
 
     Closing Date:           April 19, 2001
 
     Projected First
     Year Return:            10.4% on a cash basis, 11.0% on a GAAP basis.
 
     Investment Potential:   One Central Plaza presents multiple opportunities
                             for increased income.  These include: below market
                             in place rents, an under-managed parking garage,
                             and operating/management synergies created by
                             virtue of the 1.1 million square feet of office
                             space owned by WRIT in the North
                             Bethesda/Rockville submarket.  Opportunities to
                             increase operating income at the property through
                             proactive management in energy conservation and
                             physical plant upgrades are also projected.
 
                             One Central Plaza has an outstanding tenant
                             retention history and is in an excellent location
                             due to its proximity to executive housing, access
                             to major transportation arteries, Metro, an
                             abundance of nearby amenities such as White Flint
                             Mall, numerous restaurants and the extensive
                             retail services on Rockville Pike. The site is an
                             infill location in an area with few viable
                             development opportunities, and the acquisition
                             price is significantly below replacement cost.
 
 

SOURCE Washington Real Estate Investment Trust
    ROCKVILLE, Md., April 19 /PRNewswire/ -- Washington Real Estate Investment
 Trust (WRIT) has acquired One Central Plaza located at 11300 Rockville Pike
 (Route 355) in North Bethesda, Maryland for $44.4 million.  One Central Plaza
 is a twelve-story building containing 274,000 rentable square feet of office
 space on eight levels and 763 parking spaces on a four-level parking garage.
 The building is 99.9% leased. At a purchase price of $162 per square foot, the
 building was acquired at a substantial discount to replacement cost.
     WRIT expects this acquisition to produce a first year return on investment
 of 10.4% on a cash basis and 11.0% on a GAAP basis.  From 2001 through 2004,
 expiring leases average only 8% of the building's square footage per year.
 However, as the rents in these leases average 24% below current market rents,
 the cash return on investment is projected to grow to 11.7% over this period.
     One Central Plaza, built in 1974, is a landmark on Rockville Pike in the
 heart of Montgomery County, Maryland. The property is located directly across
 from the entrance to White Flint Mall and two blocks south of the White Flint
 Metro Station. Leasing and operational synergies are anticipated at One
 Central Plaza as WRIT now owns eight office buildings containing a total of
 1.1 million square feet in the 17 million square foot North Bethesda/Rockville
 submarket.
 
     WRIT is a self-administered, self-managed, equity real estate investment
 trust investing in income producing properties in the greater Washington-
 Baltimore region. The Trust owns a diversified portfolio of 58 properties
 consisting of 10 retail centers, 24 office properties, 15 industrial/flex
 properties and 9 multi-family properties. WRIT shares are publicly traded on
 the New York Stock Exchange (NYSE:   WRE).
 
     Certain statements in this press release are "forward-looking statements"
 within the meaning of the Private Securities Litigation Reform Act of 1995.
 Such statements involve known and unknown risks, uncertainties and other
 factors that may cause actual results to differ materially.  Such risks,
 uncertainties and other factors include, but are not limited to, fluctuations
 in interest rates, availability of raw materials and labor costs, levels of
 competition, the effect of government regulation, the availability of capital,
 weather conditions, the timing and pricing of lease transactions and changes
 in general and local economic and real estate market conditions.
 
                              Acquisition Summary
                               One Central Plaza
                              11300 Rockville Pike
                            North Bethesda, Maryland
 
     One Central Plaza is a twelve-story office building located at 11300
 Rockville Pike in North Bethesda, Maryland. The North Bethesda/Rockville
 submarket contains 17 million square feet of office space with a 3.1% vacancy
 rate.  The property is located directly across from the entrance to White
 Flint Mall and two blocks south of the White Flint Metro station.
     The acquisition of One Central Plaza brings WRIT's total office holdings
 in the North Bethesda/Rockville submarket to 1.1 million square feet in eight
 buildings. This strong market presence provides significant synergistic
 leasing opportunities to accommodate the changing needs of the tenants in
 these properties.
 
     Year Built:             1974
 
     Occupancy:              99.9% leased to 62 tenants.
 
     Average in Place Rents: $24.34 ($22.83 for the 83,500 sf expiring
                             through 2004)
 
     Average Market Rent     $28.50
 
     Capital Improvements:   WRIT plans to invest approximately $3.6 million in
                             capital improvements to the property over the next
                             five years. Major items anticipated to be included
                             in this program include lobby, common area and
                             restroom renovations; roof, cooling tower and heat
                             pump unit replacements; and installation of a new
                             energy management system.
 
     Parking:                Approximately 763 spaces (2.8 spaces per 1,000 sf)
 
     Purchase Price:         $44.4 million ($162.04 psf), cash.
 
     Closing Date:           April 19, 2001
 
     Projected First
     Year Return:            10.4% on a cash basis, 11.0% on a GAAP basis.
 
     Investment Potential:   One Central Plaza presents multiple opportunities
                             for increased income.  These include: below market
                             in place rents, an under-managed parking garage,
                             and operating/management synergies created by
                             virtue of the 1.1 million square feet of office
                             space owned by WRIT in the North
                             Bethesda/Rockville submarket.  Opportunities to
                             increase operating income at the property through
                             proactive management in energy conservation and
                             physical plant upgrades are also projected.
 
                             One Central Plaza has an outstanding tenant
                             retention history and is in an excellent location
                             due to its proximity to executive housing, access
                             to major transportation arteries, Metro, an
                             abundance of nearby amenities such as White Flint
                             Mall, numerous restaurants and the extensive
                             retail services on Rockville Pike. The site is an
                             infill location in an area with few viable
                             development opportunities, and the acquisition
                             price is significantly below replacement cost.
 
 SOURCE  Washington Real Estate Investment Trust