March 11, 2005

BETHESDA, MD. - Clark Realty Capital's Capital Markets Group*, a leader in the financing of military family housing, announced that it recently closed a $932 million bond issuance. This bond issuance set a new standard for the financing of military housing as a majority of the bonds were the first to receive the highest credit rating of Aaa by Moody's Investor Services without bond insurance or credit enhancement using a tiered debt structure. The bond issuance refinanced existing bonds for two military housing projects, Fort Belvoir in Virginia and Fort Irwin in California, and generated substantial economic benefit which will provide each post with additional capital to finance its development plan.

The debt market for military housing has been evolving since 1996 when the Military Housing Privatization Initiative (MHPI) was established by Congress. The uniqueness and complexity of the MHPI program has challenged conventional financing approaches, and Clark's Capital Markets Group has been on the forefront of establishing characteristics for debt financing that have attracted a wider audience of institutional investors and enabled it to realize more efficiency.

Clark initially closed on the financing for Fort Belvoir and Fort Irwin in December 2003 and March 2004, respectively. The bonds for each transaction received a debt rating from Standard & Poors of A- for Fort Belvoir and A for Fort Irwin. Recognizing changes in the marketplace combined with increasing investor confidence in these projects and the development team, Clark's Capital Markets Group structured the new bonds for these deals in three classes (instead of one) that included the following ratings from Moody's: Aaa, Aa3, and A3. The tiered structure, in combination with the varying bond maturities, lead to substantially tighter pricing than in previous financings.

Clark's approach to the capital markets has set higher standards of innovative financing for military housing projects. Clark has lead the market in structuring financing using auction-rated securities with a long-dated interest rate swap; structuring financing without bond insurance and issuing bonds as a natural A rated investment; and structuring bonds with a maturity of at least 44 years to maximize interest only and amortization periods tailored to respective projects' cash flow streams. Now, Clark is first to issue bonds that have been awarded highest investment rating without credit enhancement.

Clark has worked with the top Wall Street firms to execute its financings and most recently teamed up with Lehman Brothers, Inc. to execute the Fort Belvoir and Fort Irwin bond issuance. In total, Clark Realty Capital has issued over $3 billion in bonds to finance military housing projects since 2001. "This represents a significant share of the debt market for military housing, and we have been able to push the advancement of the debt instruments through our financial engineering," according to Gregory Day, managing director of Clark's Capital Market Group.

Clark Realty Capital is one of the most active firms in military housing and currently has under management over 25,000 homes for the armed services. "I welcome Clark's work to restructure its financing because it makes more money available to put into houses. That's good for Soldiers," said Col. T.W. Williams, Fort Belvoir installation commander. "Clark's success is a success toward our goal of providing a quality of life for our Soldiers and their families that matches the quality of their service to the nation."

* Clark's Capital Markets Group specializes in the financing of military housing and real estate transactions. For additional information, contact Diane Tomb by phone at 703-909-6212 or by email at dtomb@tombandassociates.com.

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