Crescent Breaks Ground On Downtown Houston's First Multi-Tenant Office Tower Since 1986; 5 Houston Center To Set New Building Standards.

Business Editors

HOUSTON--(BUSINESS WIRE)--Nov. 8, 2000

Downtown Houston's revitalization took a giant step forward today as Crescent Real Estate Equities (NYSE:CEI) broke ground on the first Class A, multi-tenant, high-rise office tower to be built in downtown Houston since 1986.

The new development, 5 Houston Center, is designed for the 21st century office customer and will top out at 27 stories totaling 577,000 square feet. It is an addition to and will be connected by skybridge to Crescent's existing Houston Center complex.

Participating in the ground breaking ceremonies were Alan Friedman, president of development and private equity for Crescent; Jane Page, senior vice president, asset management and leasing for Crescent's Houston Region office; Carlton E. Baucum, managing partner of Ernst & Young's Houston office; John Castillo, Houston City Council Member, District I; Jordy Tollett, president & chief executive officer, Greater Houston Convention & Visitors Bureau; Bob Eury, president, Central Houston; Steve Cole, director of development, Crescent; Debbie Wilson, Houston Center leasing manager, Crescent; John Hesseler, principal/design principal, HKS Architects; and Jim Getman, managing director, Beck Construction. Additional notables attending the festivities included Mike Goldberg, Houston City Council, District C; Diann Lewter, Director of Business Development, Central Houston; Guy Hagstette, Director of Planning, Downtown Houston Management District; Alan Williams, senior project manager, Beck Construction; and others.

At 4:00 p.m., before an architectural rendering of the new development bearing the headline, "Expanding the Dimensions of the Houston Skyline", Jane Page took the podium and welcomed attendees. "Crescent is delighted to continue Houston's downtown revitalization efforts while expanding the many amenities and services of Houston Center to yet another block," Page said. "Downtown occupancy rates for Class A space are at historically high rates, the demand for quality office space is growing, and we're happy to be in a position to respond to our customers' needs." Page then introduced Houston City Council Member, District I, John Castillo, who commended Crescent for its commitment to Houston's success and the downtown revitalization. "The addition of this cutting-edge development to the downtown environment is yet another benchmark for Houston's growth," said Castillo. "We look forward to watching 5 Houston Center take shape, reach completion, and capture its place in Houston's skyline." Alan Friedman, head of Crescent's development team, then recognized Ernst & Young, lead tenant in 5 Houston Center, which recently signed a 10-year lease for approximately 127,000 square feet in the new development. "Ernst & Young has been a valued customer of Houston Center since 1988, and we're delighted that they have chosen to remain here," Friedman said. "5 Houston Center's unique features will set a whole new standard for downtown office buildings, and Ernst & Young's forward thinking culture is an ideal match." Carl Baucum, head of Ernst &Young's Houston office, responded, "Ernst & Young is proud to be a part of this exciting venture with a company of Crescent's high caliber." He continued, "Our high-tech Workplace of the Future office model will link perfectly with the high-tech environment planned for 5 Houston Center. We can't wait to move in!"

5 Houston Center was designed by HKS Architects; general contractor for the project is Beck Construction. Completion of the building is scheduled for third quarter 2002.

Following the ceremony, the group took the traditional shovels and broke ground on the new development. Guests were invited to celebrate the event with champagne and hor d'oeurves catered by Massa's Seafood Restaurant.

5 Houston Center is designed to provide maximum space efficiency for 21st century customers. Its unique features include: ready accessibility to excess power; two telecommunications rooms per floor; full wiring for broadband; taller floor-to-floor heights; larger and more efficient floor plates; and more convenient parking, with an in-building parking garage boasting a parking ratio of 2.2 cars per 1,000 square feet. The garage will occupy the first 8 floors of the building, with convenient entrances on levels 1 and 3.

The building will be connected by skybridge to Chevron Tower, giving direct access to Houston Center's existing 3.1 million square feet of office space and amenities, including the retail shops, restaurants and food court at downtown Houston's only shopping mall, The Park Shops, as well as the Four Seasons Hotel, the Houston Center Club, Houston's underground tunnel system, and more.

About Crescent

Crescent Real Estate Equities Company (NYSE:CEI), one of the country's largest real estate investment trusts, owns and manages, through its subsidiaries, a diversified portfolio consisting of Class A office properties, business-class hotels, luxury resorts and spas, and residential developments. Its mission is to expand the dimensions of business for its customers and maximize value to its shareholders by distinguishing itself as the undisputed leader in each of its businesses. Crescent will accomplish these goals by providing exceptional customer service and asset quality and by executing a disciplined real estate investment and operating strategy that focuses on market leadership, innovative growth opportunities, and outstanding customer, employee and partner alliances.