Arden Realty Announces Acquisition of Sorrento Mesa Corporate Center, Agreement to Acquire 5670 Wilshire Boulevard and the Approval of the Next Phase of Dispositions.

LOS ANGELES -- Arden Realty, Inc. (NYSE:ARI) today announced the purchase of Sorrento Mesa Corporate Center located in the Sorrento Mesa submarket in San Diego County for $185 million. This 608,000 square-foot Class A project consists of four office buildings totaling 555,000 square feet and a 53,000 square-foot retail center. This project is currently 74% leased to a variety of tenants, including Texas Instruments, Claritas, Inc., Scudder Investments, Chicken of the Sea, Altera, Staples, Bank of America and Starbucks. With this acquisition, Arden now owns approximately 25% of the 2.3 million foot Class A office product in the Sorrento Mesa submarket and 6.8% of the entire San Diego County office inventory.

Arden also announced that it has entered into an agreement to acquire 5670 Wilshire Boulevard, located in the Beverly Hills adjacent submarket in Los Angeles County, for approximately $93 million. This 408,000 square foot Class A office building is currently 92% leased to a roster of tenants including Infinity Broadcasting, the Securities and Exchange Commission and Singapore Airlines. In conjunction with this acquisition, Arden will assume a $51.6 million mortgage loan, with an 8.5% interest rate that matures in September 2008.

In addition, Arden also announced that its Board of Directors has approved the disposition of nine properties, totaling approximately 1.5 million square feet, for the next phase of its capital recycling program. Arden expects a minimum of $200 million in sales proceeds from these dispositions and to close these sales over the next six to nine months.

"We are extremely excited to add these superior quality assets, both of which are located in strong submarkets, to our portfolio," stated Arden President and Chief Operating Officer Victor Coleman. "The Sorrento Mesa Corporate Center, with 26% vacancy will allow us to add value through leasing in an improving market over the next 12 months. The 5670 Wilshire Boulevard property has a strong tenant base and complements our existing assets in the Beverly Hills and adjacent submarkets. These transactions demonstrate our commitment to our capital recycling program to continually upgrade our portfolio through the purchase of superior quality assets in highly desirable markets and the sale of non-core or mature assets."

Arden Realty, Inc. is a self-administered, self-managed REIT that owns, manages, leases, develops, renovates and acquires commercial office properties located in Southern California. Arden is the largest publicly traded office landlord in Southern California, with 121 properties, consisting of 197 buildings and approximately 18.9 million net rentable square feet of office space. For more information on the company, visit the Arden website at http://www.ardenrealty.com.

Statements in this news release that are not historical may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although the company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the company's expectations include the availability and cost of capital for future investments, competition within the industry, real estate and economic conditions, and other risks detailed from time to time in the company's Securities and Exchange Commission filings.