Meritage/Buchanan JV Acquires Metro-Plex

July 20, 2004

Meritage/Buchanan JV Acquires 290,000 SF Metro-Plex I & II in Landover , MD

Gaithersburg , MD , July 20, 2004 …. A joint venture of New York-based Meritage Properties LLC and Maryland-based Buchanan Partners, LLC has acquired ownership of Metro-Plex I and II, two Class A office buildings near the New Carrollton Metrorail station and the I-495/Route 50 interchange in Landover , MD.

William Collins and Paul Collins of Cassidy & Pinkard represented the seller, MGP Real Estate, LLC, and Bill Morris of Advantis represented the JV in the transaction. Wells Fargo continues to provide mortgage financing on the property.

This is the third property that the Meritage/Buchanan JV has acquired during the last year; the others were 1411 K Street, N.W. and 475 School Street, S.W., both in Washington, D.C. Meritage Properties, formed in early 2003 by former Tishman Speyer Properties senior executive Andrew Nathan, has acquired properties valued at $100 million in its first 15 months of operation. Buchanan Partners, founded in 1997, has a development portfolio of some 2.5 million square feet and 600 acres of commercial land throughout the Washington , D.C. metropolitan area. Buchanan Properties, a division of Buchanan Partners, will manage Metro-Plex I and II.

Metro-Plex I, built in 1980 and partially renovated in 2002-2003, has six floors with approximately 106,000 SF and is located at 8401 Corporate Drive . Metro-Plex II at 8201 Corporate Drive was built in 1982 and towers above the Washington Beltway with 13 floors totaling 187,000 SF. The property also includes a building site approved for up to 200,000 SF of development.

Metro-Plex I and II currently house nearly 70 tenants including Mitre Corporation, the Department of Labor, Heery International, O'Brien & Gere Engineers, and the National Association of Minority Automotive Dealers. Space is available for lease through Neil Beggy of CB Richard Ellis, 301/215-4105.

“We are pleased to add Metro-Plex I and II, our largest office property acquisition to date, to our growing portfolio,” said Nathan. “This property has unparalleled transportation access to downtown Washington and Annapolis via Route 50, and the entire Washington area via the Beltway and the New Carrollton Metrorail station, which is located within walking distance. Adjacent to Metrorail is the New Carrollton Amtrak station, bringing the entire Northeast corridor within easy reach.”

Nathan added that the Metro-Plex complex also offers extensive amenities including a full-service deli, health club, abundant free parking, and a nearby Courtyard by Marriott hotel.

“We plan to continue the prior ownership's efforts to improve the tenant experience through both cosmetic and behind-the-scenes upgrades, including building systems and operations,” noted Brian Benninghoff, Principal, Buchanan Partners. “These improvements may include ‘green' initiatives, which we are exploring in some of our other properties.”

Benninghoff added that Buchanan Partners is bullish on Prince George 's County. The company owns a land parcel across Route 97 from Bowie Town Center , where it plans to develop an environmentally advanced office building beginning this fall.

Under the direction of former Tishman Speyer Properties executive Andrew Nathan, Meritage Properties LLC focuses on the acquisition, ownership and operation of value-added opportunities in select U.S. markets. Its goal is value creation through generation of significant current cash flow and realization of capital appreciation via selective property acquisitions and aggressive, focused asset management. The company's mission is to provide outstanding risk-adjusted returns to its partners while setting the standard by which tenants and brokers judge comparable properties. For more information, visit the company Web site at www.meritageprop.com .

The 20 th most active commercial developer in the Washington , D.C. metropolitan area, according to the Washington Business Journal , Buchanan Partners has developed a portfolio of over 2.5 million square feet of commercial property in the six years since its founding. The portfolio includes office, industrial, flex and retail space projects that have been developed, acquired, approved, or under construction. Buchanan Partners also has acquired, planned or developed over 600 acres of commercial land.

News media contact: Leslie Braunstein,
703/787-7979 - lbraunstein@schum.com