October 21, 2004

WASHINGTON - The U.S. Army recently announced its selection of Clark Pinnacle Family Communities LLC (Clark Pinnacle) as its partner in creating the Community Development and Management Plan (CDMP) for Fort Benning and Camp Frank D. Merrill, Georgia, as part of the Residential Communities Initiative (RCI). Clark Pinnacle is a joint venture between Clark Realty Capital, L.L.C. of Bethesda, Md. and Pinnacle of Seattle.

The CDMP will serve as the blueprint for the construction of a proposed 3,600 new homes and the refurbishment of approximately 540 existing homes - of which 500 are historically significant - at Fort Benning and Camp Merrill. Development of the CDMP will take approximately six months. Following the plan's acceptance by the Army, Department of Defense, Office of Management and Budget, and Congress, implementation is expected in the fall of 2005.

Approximately $400 million in private sector debt and equity will be spent during the eight-year initial development period to renovate existing and construct new/replacement family housing.

Clark Realty Capital and affiliates will manage the project's development, design, construction, and asset management, and Pinnacle will handle property management operations. Award-winning architect Torti Gallas and Partners, Silver Spring, Md., will provide the design and land planning for the homes.

In addition to the Fort Benning project, Clark Pinnacle is developing, building, renovating, and operating military family housing at Fort Belvoir, Va.; the Presidio of Monterey and Naval Postgraduate School in Monterey Bay, Calif.; and at Fort Irwin, Moffett Federal Airfield, and Parks Reserve Forces Training Area in Calif. Clark is also developing and building military family housing for the Department of the Navy at Marine Corps Base Quantico in Virginia, and at the Naval Complex in San Diego. Clark Realty Capital has raised $2 billion in debt and equity for these developments. When these projects are complete, Clark Realty Builders will have constructed or renovated more than 14,000 military family homes.

About Clark
Founded in 1906, the Clark organization has become one of the country's premier developers of multifamily housing and is the largest privately held general building contractor and the fifth largest multifamily builder in the nation. 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.