May 11, 2004

FORT IRWIN, CA. - Construction officially kicked off today with a groundbreaking ceremony for Crackerjack Flats, a new neighborhood of 241 homes to be built at Fort Irwin, California, as part of the U.S. Army's Residential Communities Initiative Program.

Speakers at the ceremony included Acting Assistant Secretary of the Army for Installations and Environment Mr. Geoffrey G. Prosch; Fort Irwin Brigadier General Joseph F. Fil, Jr., Commanding General, U.S. Army National Training Center and Fort Irwin; Clark Realty Capital Managing Director Cleve Johnson; and Pinnacle President and CEO Stan Harrelson.

"This community is a place our soldiers will be proud to call home," said Mr. Prosch. "The replacement of 300 homes and construction of over 330 more homes will go a long way toward getting soldiers and families off that dangerous road leading into and out of the installation."

"Today we take a colossal step forward for the betterment of living for our families," said Brigadier General Fil. "Our partner has started construction, and they're doing a great job. I've been down to see the work of this great organization in San Diego at the Naval Training Center, and it is first-class. It is blending in beautifully with houses that go for $800,000 right across the street, and you can't tell which is the Navy's and which is the private sector. That's the kind of work they do."

The Department of the Army and Clark Pinnacle California Military Communities LLC are working together to design, build, and operate military family housing communities at three California military installations: Fort Irwin in San Bernardino County, Moffett Field in Santa Clara County, and Camp Parks in Alameda County. When the initial development plan is complete, Clark Pinnacle will manage a total of 2,376 homes and 200 apartments at Fort Irwin, 316 homes at Moffett Field, and 114 homes at Camp Parks.

Clark Pinnacle California Military Communities is a joint venture between Clark Realty Capital of Bethesda, Md., and Pinnacle of Seattle. At all three installations, Clark Realty Capital and affiliates will manage the development, design, construction and asset management, and Pinnacle will handle the property management.

At Fort Irwin, the initial development plan spans eight years and includes the demolition of 385 homes and the construction of 715 homes. A new 25,000-square-foot community center will provide families with a pool, fitness room, teen center and large ballroom for formal functions. Clark Pinnacle will also construct the Irwin Town Center, a new town village with more than 20,000 square feet of retail space and 200 new one-bedroom apartments for senior unaccompanied soldiers. This is the first time that the Army has privatized senior unaccompanied housing.

Award-winning architect Torti Gallas and Partners designed the new one- and two-story homes at Fort Irwin in the regional Southwest style. The family housing, which has a minimum of three bedrooms, will average 1,750 square feet and offer a range of floor plans. Interior amenities include spacious great rooms, kitchens equipped with dishwashers and microwaves, and two-car garages. Residents of the neo-traditional communities will have access to pedestrian walkways, children's play areas, and outdoor playing courts and fields.

About Clark
Founded in 1906, the Clark organization has become one of the country?s premier developers of multifamily housing. The Clark companies are headquartered in Bethesda, Md., with regional offices strategically located throughout the United States.

About Pinnacle
Pinnacle is an international real estate investment management firm headquartered in Seattle. Pinnacle provides both multifamily residential and commercial real estate owners and investors with a broad scope of realty services, including the acquisition, disposition, rehabilitation, property management, financing, and repositioning of real estate assets.