Colonial Properties Trust and DRA Advisors, LLC Complete their Acquisition of CRT Properties, Inc.

BIRMINGHAM, Ala. -- Colonial Properties Trust (NYSE: CLP), a diversified real estate investment trust that owns a portfolio of multifamily, office and retail properties, announced that it closed today on its previously announced transaction with an investment fund managed by DRA Advisors, LLC to acquire CRT Properties, Inc.

Earlier today, CRT Properties, Inc. merged with an investment fund managed by DRA Advisors. In connection with this merger transaction, Colonial Properties, through its previously announced joint venture with DRA Advisors, acquired a 15 percent ownership interest and will manage substantially all of the acquired portfolio of approximately 26 office properties.

"We are excited about the opportunity to expand our relationship with DRA and recognize that our first priority is to lease office space," said Bo Jackson, executive vice president of Colonial Properties' office division. "This represents an excellent investment for our company, providing us an operating platform of quality office properties in high-growth Sunbelt cities. We were fortunate to retain a strong team of property managers and expect to maintain high levels of service for our clients."

David Luski, chief operating officer of DRA added, "We are enthusiastic about the opportunity to continue to add value to this diverse Southeastern portfolio in partnership with Colonial Properties, while further building our mutually rewarding relationship."

Today's transaction added 11.7 million square feet of office space to Colonial Properties' existing office portfolio of 8.3 million square feet for a total 20 million square feet of managed space. Subsequent to this transaction, about 62 percent of Colonial Properties' office portfolio is concentrated in Atlanta, Ga., with 4 million square feet of office space; Orlando, Fla., with 3 million square feet; Huntsville, Ala., with 1.6 million square feet; Birmingham, Ala., and Houston, Texas, each with 1.4 million square feet; and Charlotte, N.C., with 914,000 square feet.

The majority of the acquired CRT properties are Class A office buildings located in suburbs of high-growth Sunbelt cities. Major corporate clients include Citigroup, Verizon Communications, Inc., Blue Cross Blue Shield, InterContinental Hotels Group and Bechtel Corporation. Approximately two-thirds of the leases extend beyond 2007.

Colonial Properties Trust, through its subsidiaries, owns a portfolio of multifamily, office and retail properties where you live, work and shop in the Sunbelt. Colonial Properties Trust performs development, acquisition, management, leasing and brokerage services for its portfolio and properties owned by third parties. The company has a total market capitalization of approximately $5.5 billion. As of Sept. 27, the company owns or manages 48,170 apartment units, 20 million square feet of office space and 13.5 million square feet of retail shopping space. Headquartered in Birmingham, Ala., Colonial Properties is listed on the New York Stock Exchange under the symbol CLP and is included in the S&P SmallCap 600 Index. For more information, visit www.colonialprop.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by the forward looking statements. Factors that impact such forward looking statements include, among others, real estate conditions and markets; performance of affiliates or companies in which we have made investments; changes in operating costs; legislative or regulatory decisions; our ability to continue to maintain our status as a REIT for federal income tax purposes; the cost and availability of new debt financings; volatility of interest rates or capital market conditions; effect of any terrorist activity; or other factors affecting the real estate industry generally.

Except as otherwise required by the federal securities laws, the Company assumes no liability to update the information in this press release.

The Company refers you to the documents filed by the Company from time to time with the Securities and Exchange Commission, specifically the section titled "Business-Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2004, which discuss these and other factors that could adversely affect the Company's results.