LERNER SIGNS LEASE FOR FALLSGROVE VILLAGE OFFICE CENTER

Rockville, Maryland, January 3, 2003 – Lerner Enterprises has announced the signing of a lease with Adventist HealthCare for space in Fallsgrove Village Office Center, located on Shady Grove Road and Fallsgrove Boulevard in Rockville, Maryland. Adventist HealthCare signed a ten year, 10,995 square foot lease for a full service radiology lab that will have MRI, CAT Scan, mammography, ambulatory and surgical facilities.

Adventist HealthCare is the first to sign a lease in the newly completed 75,000 square foot, three story, Class “A,” building located directly adjacent to the retail component of Fallsgrove Village Center, which is anchored by a 56,000 square foot Safeway Food & Drug. Lerner Corporation is the property management company for the office building and retail space.

“We are extremely pleased with the strong interest we have received for office space at Fallsgrove Village Center and we are thrilled to have a tenant of Adventist’s stature kick-off the office leasing on this project,” stated Peter Hill-Byrne, Vice President of Grubb & Ellis, the office leasing agent for Lerner. Hill-Byrne added, “We anticipate signing a lease for the remainder of the first floor soon and we already have significant activity on the second and third floors.”

Since its opening in November, the shopping center has been well received by residents and the same positive reception is expected for the new office tenants. “Employees and patrons of the office building will enjoy the convenience of being located next to upscale shops, restaurants and neighborhood services. Office tenants will enjoy the convenience of downtown Bethesda without the congestion,” states Arthur N. Fuccillo, Vice President of Development for Lerner Enterprises of North Bethesda, Maryland, which developed the shopping center and office building.

Fallsgrove, a mixed-use development is located on the former Thomas Farm, site and is approximately 257 acres. The Fallsgrove master plan includes over 850,000 square feet of office and research and development space, a mix of 1,535 residential units and the newly opened 136,000 square foot Fallsgrove Village Center. The entire project is located directly across Shady Grove Road from the flagship hospital, Shady Grove Adventist Hospital.

Lerner Enterprises of North Bethesda, Maryland, founded by Theodore N. Lerner in 1952, is one of Washington D.C.’s leading and largest real estate developers and is involved in all phases of office, retail and residential real estate including planning, development, construction, leasing, asset management and property management. Lerner’s office portfolio totals over 7 million square feet and includes: The Corporate Office Centre at Tysons II, The Corporate Office Park at Dulles Town Center, Flint Hill Office Park, 7799 Leesburg Pike and 400 Army Navy Drive in Northern Virginia, White Flint North and Fallsgrove Village Center in Maryland in addition to Washington Square and 1133 Connecticut Avenue, N.W. in Washington, D.C. The company’s retail portfolio includes regional malls Dulles Town Center in Dulles, VA and White Flint in North Bethesda, MD and neighborhood centers Annapolis Harbour Center, Annapolis, MD, North Point Village Center, Reston, VA, The Spectrum at Reston Town Center, Reston, VA, Fallsgrove Village Center, Rockville, MD and Towne Plaza, Rockville, MD. Lerner was also the original developer of Tysons Corner Center and Tysons II Galleria in McLean, VA and Wheaton Plaza in Wheaton, MD.

Additional information on Fallsgrove Village Center and Fallsgrove Village Office Center is available at
FallsgroveVillageCtr.com
FallsgroveOffice.com