• Focus is New Development, Acquisitions and Condo Conversions, Primarily on East Coast
  
• Funding Closes for First Phase of New Apartments in Suburban Maryland

BERWYN, Pa. and BETHESDA, Md. (June 7, 2006) — LCOR and the California State Teachers' Retirement System (CalSTRS), which last year formed a joint venture to develop and acquire multifamily housing assets primarily on the East Coast, have agreed to increase their combined equity commitment to $287.5 million. When leveraged with debt, the equity will allow the venture to complete multifamily investments of up to approximately $1 billion.

The focus of CalSTRS' joint venture with LCOR, a real estate development, investment and management company, is development and acquisitions, but condo conversions and redevelopments also are targeted in Washington, D.C., Philadelphia, New York City and other East Coast markets.

The joint-venture entity is called LCOR Residential Associates LLC, which is the parent of all project entities owned by the joint venture.

LCOR also announced today that funding has closed for the first phase of construction at North Bethesda Center, a mixed-use commercial and residential development that is rising on a 32-acre site (owned by the Washington Metropolitan Area Transit Authority) adjacent to the White Flint Metrorail station in North Bethesda, Md.

LCOR is the master developer of the site. The first phase of development includes an 18-story, 312-unit rental apartment project and a 65,200 square foot grocery store. The total construction cost is approximately $110 million.

This town-center style development ultimately will include more than one million square feet of office space, 202,000 square feet of street-retail space, and 1,250 multifamily housing units. North Bethesda Center is expected to generate approximately 5,400 new permanent jobs and 6,500 mass transit rides.

LCOR's relationship with CalSTRS dates back to 2003, when the organizations first invested together to develop Wilton House, a 259-unit, 15-story high-rise residential property near Tysons Corner in Northern Virginia. LCOR Residential Associates LLC closed its first investment in June 2005, with the purchase of a New York City site on which LCOR is developing The Charleston, a 191-unit, 21-story high-rise condominium in Murray Hill. In December 2005,

LCOR Residential closed on the acquisition of Ravens Crest, a 444-unit garden apartment community in Manassas, Va., approximately 22 miles west of downtown Washington, D.C.

LCOR specializes in the development of mixed-use, multifamily and office properties, including transit-oriented development. The firm developed and now owns and operates the new United States Patent and Trademark Office headquarters campus in Alexandria, Va., which contains 2.4 million square feet of office space, and was recently named master developer by New Jersey Transit for its 65-acre Hoboken Terminal and Yard transit-oriented property.

Based in Berwyn, Pa., LCOR is a real estate development, investment, operations and asset management company. The firm’s portfolio includes approximately $8 billion of developments completed, under construction or in pre-development.