The Flour Mill

Transaction: Acquisition, renovation and sale of landmark office building

Asset Summary: 125,000 square foot office building, 85% occupancy

Location: Occupying an entire city block between the Potomac River and the Historic C&O Canal in the Georgetown submarket of Washington, DC

Date Closed: October 2007 (Originally purchased in 2003)

Investment Strategy:

• Purchased property at a significant discount to replacement cost
• Repositioned common areas, updated all major building systems and leased the building to 100% occupancy
• Implemented improved operating property management practices
• Utilized modest level of long-term, low-cost debt, locking in exceptional risk-adjusted returns for investors

Exit Strategy:

• Sold to an institutional real estate fund