National Park Service, Commonwealth Atlantic Enter Into Historic Agreement.

ALEXANDRIA, Va.--(BUSINESS WIRE)--Nov. 23, 1998--

Proposal Eliminates Interchange at Parkway,

Lifts 1938 Development Restrictions

The National Park Service and Commonwealth Atlantic Properties Inc. (CAP) signed a landmark exchange agreement on November 18 that eliminates CAP`s right to an interchange or other access from its property to the George Washington Memorial Parkway in Alexandria, while removing 60-year-old development restrictions on other land the company owns in Arlington.

The complex arrangement provides for Commonwealth Atlantic Properties, the Alexandria-based owner of Potomac Yard and the Potomac Yard Retail Center, to give up all of its rights contained in a 1970 agreement to access the Parkway west of Daingerfield Island, in an area known as Potomac Greens. CAP also agrees to restrict its development of Potomac Greens to residential use with supporting retail.

In exchange, the National Park Service will remove what is termed its 1938 Indenture of a 29.1 acre parcel of land located in South Arlington near Reagan National Airport. The indenture, or restriction, was created in 1938 and prohibited owner RF&P Corporation, the rail company and Commonwealth Atlantic Properties' predecessor, from non-rail usage of the property. Previous attempts to remove the indenture resulted in litigation between the prior owners and the National Park Service, and the indenture remained in place. Also, as a contribution to the continued preservation of the scenic character of the Parkway, the company will grant an easement over the 29.1 acre parcel to the National Park Service, allowing for agreed upon height and set-back limits on the property.

The agreement was reached last month after lengthy negotiations by John G. Parsons, Associate Regional Director of the National Capital Region of the National Park Service, and Richard I. Gilchrist, President/CEO of Commonwealth Atlantic Properties Inc., and resolves decade-long disputes.

"We are extremely pleased that the George Washington Memorial Parkway will be protected as a result of this important agreement," said Parsons. "It is a highly valued community and national treasure, and our exchange agreement with Commonwealth Atlantic Properties allows us to maintain its sanctity, while at the same time removing restrictions so that appropriate development can occur in the future set back from the Parkway."

"The National Park Service has provided us with an important opportunity to resolve what had been an extremely difficult problem for our predecessor, RF&P Corporation, and for us," noted CAP President/CEO Gilchrist. "We can now move ahead, comfortable knowing that the Parkway has been preserved and that our rights as property owners have been restored because of their creative problem solving. We are very appreciative of the substantial efforts and leadership provided by the National Park Service in working with us to bring this to a successful conclusion."

Congressman Jim Moran, in whose Congressional District the CAP-owned property is located, has assisted for many years in seeking settlement of the issue. "This agreement is a major accomplishment for everyone -- the Park Service, Commonwealth Atlantic, the communities of Alexandria and Arlington, and for the long-term preservation of the Parkway," said Moran.

The formal agreement signed November 18 describes a detailed valuation process, which includes appraisals, environmental documentation and public involvement; the agreement will be submitted for Congressional review.

On December 10, 1998, the National Park Service will hold an open house to seek public comment on the potential environmental impacts of the proposed exchange. This scoping meeting will be followed with the preparation of an environmental document which will be released for public comment early next year.

The National Park Service manages the George Washington Memorial Parkway as a scenic gateway to the Nation's Capital and Mount Vernon. While serving as a link between numerous sites associated with American history, the Parkway's scenic corridor protects the viewshed of the Potomac River shoreline and vistas of the Nation's Capital and provides recreational opportunities for local, national, and international visitors.

Commonwealth Atlantic Properties Inc. is the owner of Potomac Yard, a site comprised of approximately 350 acres, most of which is located in Alexandria and the remainder in Arlington. After a long history as a rail yard, CAP began development activities on the site several years ago, including the almost completed Potomac Yard Retail Center. The company also owns and is developing substantial properties and land in Northern Virginia and in the Richmond area.

For more information, contact Commonwealth Atlantic Properties Inc. at [phone] or the National Park Service at [phone].