PHILLIPS REALTY CAPITAL PLACES $18.1 MILLION DEBT FOR HISTORIC CBD OFFICE BUILDING

Bethesda, Maryland, September 19th, 2006… Phillips Realty Capital of Bethesda, MD was retained by Norvin Partners, Ltd to procure an $18.1 million acquisition loan for the purchase of 1301 and 1317 Connecticut Ave, NW, an eight story, 64,000 square foot office building and adjacent three story townhouse located in Washington DC’s central business district. The deal was a five-year term, interest only loan.

The building is situated at the corners of Connecticut Avenue, NW, N Street, NW, and 18 th Street, NW. 1301 Connecticut’s unique triangular shape offers its retail tenants over 400 feet of street frontage and its office tenants unobstructed views of the CBD. Blending the Washington area’s native architectural charm with essential contemporary amenities, the building has been certified as an historic property built in 1918 and renovated in 1987. The building is 100% leased.

1301 Connecticut Avenue is located in Washington, D.C.’s prestigious Golden Triangle, one block from Dupont Circle, a trendy center for nightlife, shopping and the arts. The Red Line (Dupont Circle station) of Washington’s Metro and some of Washington’s leading hotels, including the Mayflower, are within blocks of the property. Georgetown, the National Mall and The Verizon Center are all accessible on foot or via a short cab ride.

Norm Livingston, Norvin’s Managing Partner said "he was motivated by this opportunity due to the property’s prime location, significant retail component and potential to improve rents through capital upgrades and professional management”.

Norvin Partners, Ltd is a private equity fund with real estate interests in New York City, the New York tri-state area, Washington, DC, Houston and Florida. Norvin focuses on acquisitions of underperforming Class-A and –B office and medical properties. Founded in 1997, Norvin Partner’s is headquartered in New York City and maintains a regional office in Houston, Texas.

“Phillips Realty Capital is pleased to have worked with Norvin Partners in their first foray into Washington, DC. It was truly a collaborative effort between Phillips, Norvin Partners, Goldman Sachs and the Woodmont Companies”, said John Sieber, Principal of Phillips.

Founded in 1933 as Frank S. Phillips Inc., Phillips Realty Capital manages the entire borrowing process for its commercial clients, from market analysis through underwriting, placement, and closing. Phillips provides financing to real estate investors, developers, and owners for a diverse range of properties, including office, retail, multifamily, industrial, and hospitality.

Phillips Realty Capital provides long- and short-term financing options including permanent, mezzanine, bridge, construction and structured loans, as well as a variety of equity products. The firm utilizes an extensive placement network of institutional investors and capital markets including life insurance companies, pension funds, commercial banks, credit companies, and offshore investors.

Over the last four years, Phillips Realty Capital has financed more than $3 billion in debt and equity in the Washington metropolitan area. On behalf of its correspondent and other lenders, the firm now services a loan portfolio in excess of $1.2 billion. For more information, visit the company’s Web site at www.phillipsrealtycapital.com.

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