OVERVIEW

High barriers-to-entry location with embedded demand drivers

Address: 1776 Massachusetts Avenue

Location: Washington, DC

Square Footage: 92,939

Investment Profile: Core-Plus

Purchase Date: July 2005

Sale Date: May 2012

Purchase Price: $34,500,000

Sale Price: $45,500,000

INVESTMENT THESIS

Excellent Micro-Market

Potential User Exit

Stable Rent Roll

Strong tenant loyalty along Embassy Row in Dupont Circle

Demand from institutions along Embassy Row including the Brookings Institute, Carnegie and Johns Hopkins

No lease expirations for four years

EXECUTION

UPGRADED TENANT DEMOGRAPHIC

Expanded the Brookings Institute and Johns Hopkins University within building

INCREASED RENTABLE SF

Added 5% of rentable sf via BOMA remeasurement

BASE BUILDING UPGRADES

Addressed deferred maintenance items to attract large, credit worthy user groups

RESULTS

Sold for $45.5 million (32% above purchase price)