Atlantic Realty Acquires Montgomery Airpark Portfolio.

Business Editors/Real Estate Writers

VIENNA, Va.--(BUSINESS WIRE)--Feb. 9, 2004

Atlantic Realty Companies, one of the largest real estate services firms in the Washington, D.C. region, has acquired a portfolio of buildings in Montgomery County Airpark in Gaithersburg, MD, consisting of four industrial/service-retail facilities totaling over 104,500 square feet on 5.35 acres. The Portfolio's location in Montgomery County Airpark is just minutes from I-270 and in the heart of one of the strongest industrial markets in the Northeast Corridor. It serves the small bay industrial and service-retail market segments with spaces ranging from 1,500 sq. ft. to 8,000 sq. ft., and has enjoyed high occupancy levels since its construction in the 1980s. It is currently 100 percent leased to 35 tenants from a variety of industries. The seller, Knollwood Development Corporation of Largo, Maryland, was represented by Christopher Kubler of NAI KLNB, Inc. Richard F. Blue, Jr. of Blue & Obrecht represented Atlantic Realty.

The four buildings in the Portfolio include Parkside Technology Center at 8041-8051 Cessna Avenue; Cessna Research & Industry Center at 2-70 Cessna Court; Knollwood Housing & Industry Center at 8130-8174 Beechcraft Avenue and Beechcraft Research & Industry Center at 8130-8174 Beechcraft Avenue. The Portfolio also includes a development site that can accommodate another facility of up to 25,000 sq. ft. Atlantic Realty plans to immediately convert two of the buildings into commercial condominiums, which will provide tenants the opportunity to purchase these units.

"Given its excellent location, the demand for this type of space in Montgomery County and our successful experience with the industrial/service market, we are extremely pleased to be adding this facility to the list of Atlantic Realty properties," said David A. Ross, ARC partner. Atlantic Realty also recently acquired the 125,000 square foot Sunset Business Park, another industrial/service project, located in Herndon, Virginia.

Based in Vienna, Va., Atlantic Realty Companies is a full service commercial real estate company with a portfolio of over six million square feet of commercial properties valued at more than $750 million. Since its founding in 1992, the company has earned numerous awards, including the 2002 Ernst & Young Greater Washington Entrepreneur of the Year Award in Real Estate/Construction.

For more information on Atlantic Realty Companies, visit www.arcrealty.com.