Crescent Real Estate Equities Inc. announces completed and pending property acquisitions.

NEW YORK--(BUSINESS WIRE)--Nov. 29, 1994--Crescent Real Estate Equities, Inc. (NYSE:CEI) today announced completion of approximately $66 million in office building acquisitions and approximately $59 million of additional property acquisitions expected to close prior to year end.

These completed and pending acquisitions, which in the aggregate are expected to produce initial yields of 10 percent after reserves for recurring capital expenditures, will increase the company's total acquisitions since its initial public offering in May 1994 to over $200 million. According to John Goff, chief executive officer, "The company continues to capture tremendous acquisition opportunities which provide favorable current returns on invested capital and more importantly, significant opportunity for growth as occupancies and rental rates in our selected markets continue to rise."

Crescent completed the acquisition of Two Renaissance Square, a 28 story, 484,000 square foot Class A office building completed in 1991 located in downtown Phoenix. Crescent acquired the building from a bank group led by an affiliate of Citibank, N.A. at a significant discount from its original cost. With a current occupancy of 62 percent, Two Renaissance holds approximately 80 percent of the remaining available Class A office space in the downtown market.

According to Gerald Haddock, president and chief operating officer, "In light of the continuing redevelopment activities in downtown Phoenix, such as the America West Arena and related amenities, Crescent believes that the building is uniquely positioned to capitalize on the resurgence of downtown Phoenix and the overall growth of the Phoenix metropolitan area. We already have active lease proposals for approximately 90,000 square feet of the building's available space."

Crescent also announced the closing of The Avallon, a 126,000 square foot, three-building Class A office complex located in northwest Austin, Texas. The complex is currently 100 percent leased and is located in a submarket that has a Class A occupancy of 94 percent and rental rates for Class A space which have increased approximatley 10 percent since 1993. Crescent has also contracted to acquire a 12.1 acre site for potential future development adjacent to The Avallon. Closing of the land acquisition is expected to occur by Nov. 30, 1994.

Consistent with Crescent's strategy of making opportunistic acquisitions of uniquely located, market dominating properties with a strong operating history and potential for growth, the company has agreed to acquire the Hyatt Regency Beaver Creek located within the heart of the Beaver Creek Ski Resort in Avon, Colo. The Hyatt Regency opened in December 1989 and consists of a 300-room hotel and related retail shops and conference facilities. The closing of the acquisition is scheduled for the end of 1994. According to Goff, "The Hyatt Regency is the premier hotel in the Vail Valley and with existing restrictions on future hotel development in Beaver Creek, this acquisition will provide significant current returns with substantial opportunities for growth in funds from operations. Although our primary focus will continue to be premier office properties, we believe our contacts and relationships will continue to afford us investment opportunities involving unique assets offering superior returns. Through this acquisition, we will be able to participate in the steadily improving fundamentals of the hotel industry."

Also in Colorado, Mira Vista Development Corporation ("MVDC") has entered into an agreement with Highlands Management Group to acquire a 12.5 percent interest in a joint venture involving the development of approximately 1,200 acres in Breckenridge, Colo., one of Colorado's major ski resorts. The development has preliminary approval for 1,500 living units which will be a combination of single family lots and multi-family development parcels. It is anticipated that MVDC's capital commitment for the joint venture will be less than $1 million at any point in time, with development occurring as demand dictates. Demand for product is very strong as evidenced by the initial phase of 32 lots being sold when the lots were first offered to the public at a price per lot ranging from $105,000 to $175,000. MVDC is presently engaged in the development of Mira Vista, an upscale residential community in Fort Worth, Texas consisting of approximately 580 acres and 700 planned lots. Crescent owns a 99 percent economic interest in MVDC through ownership of 1 percent of the voting and all of the nonvoting common stock of MVDC and a mortgage note secured by substantially all of its real property assets.

Crescent also announced that it has completed its due diligence review in connection with its previously announced acquisition of Stanford Corporate Centre from a major life insurance company and is presently awaiting the approval of the ground lessor to the transaction. This approval is the subject of an arbitration between the seller and the ground lessor which is currently in progress and expected to be completed by year-end. Stanford Corporate Centre has a current occupancy of 92 percent and consists of a 266,000 square foot, 14 story Class A office building and adjacent free-standing athletic club located in the North Dallas Tollway submarket.

Crescent is a fully integrated real estate company, which through the UPREIT operating partnership structure, conducts its business activities and owns and operates a diversified portfolio of real estate assets, including 10 office properties and two retail centers comprising approximately 4.9 million square feet and economic interests in four single family residential land developments.

CONTACT: Crescent Real Estate Equities Inc.

Dallas E. Lucas, 212/836-4216