CB Richard Ellis Disposes of Multi-Market, Million Square Foot Real Estate Portfolio for J.P. Morgan.

NEW YORK--(BUSINESS WIRE)--Sept. 22, 1999--

CB Richard Ellis has successfully disposed of a 1,079,000 sq. ft. portfolio on behalf of J.P. Morgan Investment Management. The portfolio consisted of three Koger Centers in Little Rock, AK, Norfolk, VA, and Raleigh, NC, and was sold for an aggregate of nearly $80 million. Each property was sold to a separate buyer. Senior Vice Presidents Jeffrey Dunne and Dave Simson, and James R. Tully, Associate, were responsible for the disposition with local support from Kelly Truitt (CB Richard Ellis, Little Rock), Patrick Gill (CB Richard Ellis, Norfolk) and Jeff Glenn (CB Richard Ellis, Raleigh).

"We aggressively marketed both the portfolio, and each of the properties individually. Each Koger Center was an attractive property in their respective markets and generated a great deal of interest," said Simson.

The first property to be sold was the Koger Center-Little Rock, which sold in April of this year for $30.4 million. "In addition to six buildings and 372,369 sq. ft. of space, the Koger Center-Little Rock offered nearly 33 acres of vacant land for future development, making this particular property extremely attractive for the right buyer," said Dunne. The Little Rock center was sold to ISB Investors, a Little Rock-based investment firm.

In May of this year, CB Richard Ellis disposed of the Koger Center-Norfolk. This 425,000 sq. ft. suburban office complex sold for $26.7 million to Interstate Office Holdings, LLC, an entity controlled by Harbor Group International. "Although this property was built in the 1970s, its prime location led to multiple offers from regional investors," said Dunne.

The Koger Center-Glenwood in Raleigh, NC was the last property to be sold, in July of this year. This 10-building, 281,066 sq. ft. property sold for $22.5 million to Grubb Management. "The Glenwood transaction completed the sale of the portfolio assignment on Morgan's behalf and demonstrates the value of CB Richard Ellis' multi-office partnering capabilities," said Dunne. "Joint ventures with other CB offices have enabled us to better serve our clients who own assets outside of the greater New York metropolitan area."

"We chose CB Richard Ellis for their strategic thinking and their ability to put a strong, core management team in place, while providing us with a professional in each of our markets," said Jim McLoughlin, Vice President, J.P. Morgan. "We were very pleased with the results," he added.

CB Richard Ellis (NYSE: CBG) is the world's leading real estate services company. Headquartered in Los Angeles with 10,000 employees worldwide, the company serves real estate owners, investors and occupiers through nearly 250 principal offices in 35 countries. Services include property sales and leasing, property management, corporate advisory services and facilities management, mortgage banking, investment management, capital markets, appraisal/valuation, research and consulting. CB Richard Ellis had 1998 revenues of over $1 billion.

J.P. Morgan is a global financial firm that has built an international reputation for excellence in serving the needs of corporations, governments, institutions, and individuals. The firm manages $326 billion in assets -- more than $12 billion of which is in real estate -- for defined benefit and defined contribution plans, proprietary mutual funds, third party mutual funds, and high net worth individuals. Morgan's commitment to real estate is evidenced by its 28-year history of successful investing and more than 70 real estate professionals who manage both private and public real estate portfolios.