BETHESDA, Md. (December 12, 2006) — The Washington, D.C. regional office of LCOR Incorporated announced today that an affiliate of the company acquired the ownership of the Montclair Apartments in Silver Spring, Maryland. The new owner of Montclair is LCOR Residential Associates LLC, a joint venture owned by affiliates of LCOR, Lehman Brothers and CalSTRS (the California State Teachers’ Retirement System). The seller of the property was a joint venture between Fairfield Residential and a public pension fund.

Montclair Apartments, a 256-unit garden apartment community in Montgomery County, Md., is approximately 12 miles northeast of downtown Washington, D.C. According to research and consulting firm Delta Associates, the Washington metro area continues to be one of the strongest apartment markets in the nation, with low vacancy rates and high rental rates.

Notably, the Silver Spring submarket is undergoing a significant renaissance, and recently attracted such companies as the Discovery Channel headquarters and Verizon. Major projects either finished lately or under construction offer new retail, restaurant and entertainment venues. In 2003, both the American Film Institute and the Round House Theatre established themselves in Silver Spring, making it a center for the arts. New commercial development along the area’s Route 29 corridor in close proximity to Montclair includes the East County Science and Technology Center. The 660-acre White Oak Federal Center, less than eight miles from the property, will be home to a 3,000,000 square foot campus for the U.S. Food and Drug Administration.

“With its proximity to downtown Washington, D.C. and major business centers and other amenities in Montgomery County, Silver Spring, including Montclair Apartments, is a highly desirable community,” said Timothy D. Smith, senior vice president of LCOR. “The property and community supports a high quality of life for residents, with the limited amount of multifamily supply in the area positioning the property to perform well over time.”

Developed in 1986, Montclair offers residents a mix of one and two bedroom apartments, ranging in size from 755 to 1,091 square feet. Recently completed unit upgrades include new countertops, appliances and light fixtures. The clubhouse, fitness center and pool area also were recently renovated.

LCOR is interested in acquiring other apartment communities in the eastern United States (including in the Washington, D.C., Philadelphia, New York City and Boston areas) for operation as rental properties or condo conversion, as well as sites for new multifamily development. Interested property sellers should contact LCOR Senior Vice President Robert R. Kilroy at rkilroy@lcor.com.

LCOR has a 34-year presence in the Washington area. The company, which specializes in mixed-use, multifamily and office properties, also developed and owns Andover House apartments on 14th and N Streets in Northwest Washington, and the new United States Patent and Trademark Office headquarters campus in Alexandria, Va. LCOR recently broke ground on a 2.7 million square foot mixed-use, town-center-style development at the White Flint Metrorail station in North Bethesda, Md.

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

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