LERNER TO ACQUIRE SITE NEAR NAVY YARD AND SOUTHEAST FEDERAL CENTER

February 1, 2001 – Lerner Enterprises, one of Washington D.C.’s premier real estate developers, and its affiliate, LMH Realty Group, L.L.C., are moving ahead with a proposed new 190,000 square foot Class ‘A’ office building to be built at 20 M Street, S. E., directly across M Street from the Navy Yard Metro Station in Washington, D. C.

The recent renovation and rehabilitation of numerous buildings inside the Navy Yard, setting the stage for the 2001 NAVSEA Command relocation from Crystal City, Virginia is almost complete. A number of privately owned office buildings are underway along M Street, S. E. and the majority have been fully leased prior to completion.

The proposed 10-story office building will be designed by Weihe Design Group of Washington, D. C., a nationally renowned architectural firm. The building will have a green-glass curtain wall facade with metal horizontal bands. It will be a distinctive building for the neighborhood and will be the first office building seen as one enters the Southeast submarket along M Street from South Capitol Street. It will have four levels of below-grade parking totaling 190 spaces. Leasing will initially be handled by LMH Realty Group, L.L.C. of Washington, D. C. Property Management services will be provided by Lerner Corporation, the management affiliate of Lerner Enterprises.

“Lerner Enterprises is excited about developing 20 M Street, which is clearly one of the premier office development sites in Southeast Washington. Because of the strength of the market and the tremendous location of this site, directly across M Street from the Navy Yard Metro Station, we intend to begin construction of 20 M Street on a fully-speculative basis”, stated Jonathan H. Morris, a Principal of LMH Realty Group, L.L.C.

Lerner Enterprises, founded by Theodore N. Lerner, is one of Washington, D. C.’s largest real estate developers and is involved in all phases of commercial and residential real estate including planning, development, construction, leasing, asset and property management.

Lerner’s extensive office portfolio includes: The Corporate Office Centre at Tysons II, Flint Hill Office Park, 7799 Leesburg Pike and 400 Army Navy drive in Northern Virginia, White Flint North in Maryland, in addition to Washington Square and 1133 Connecticut Avenue, N. W. in Washington, D. C.