Prentiss Properties Trust Announces Acquisition of Cityplace Center in Dallas, Texas; Enters Agreement to Sell Natomas Corporate Center in Sacramento, California.

Business Editors/Real Estate Writers

DALLAS--(BUSINESS WIRE)--March 30, 2004

Prentiss Properties Trust (NYSE:PP), a real estate investment trust (REIT) which focuses on office ownership and development in select markets, announced today that it has entered into a binding contract to purchase Cityplace Center in Dallas from 7-Eleven, Inc. Under the terms of the agreement, 7-Eleven will enter into a 504,351 square-foot lease for three years from the date of closing and continue to maintain its corporate headquarters at the building. 7-Eleven may elect to extend the term of its lease an additional seven years by notifying Prentiss not later than eighteen months from the closing of the sale. The acquisition price for the building is $124 million ($101 per square foot) with an obligation by Prentiss to fund an additional $14.5 million if 7-Eleven exercises its extension option. Closing of the transaction is anticipated by the end of April 2004.

Cityplace Center is a 42-story, 1.2 million square foot, Class "AA" office building located on Central Expressway and Haskell Street just north of downtown Dallas and east of the Uptown/Turtle Creek submarket. The building is currently 82 percent leased with 7-Eleven (504,351 square feet; BBB senior unsecured debt rating from S&P), Homecomings Financial (148,004 square feet; wholly owned subsidiary of GMAC), Dain Rauscher (104,848 square feet), and AON (57,371 square feet; A- senior unsecured debt rating from S&P) serving as the primary tenants.

Cityplace is located directly on a Dart light rail stop, which serves passengers via a tri-level underground station, 120 feet below the building. Additional building features and amenities include an all-granite exterior, ornate granite and mahogany interior finishes, 8 five-story atriums throughout the building, a full service cafeteria and conference facilities totaling approximately 69,000 square feet, close proximity to numerous restaurants, retail and housing in the popular Uptown/Turtle Creek area and additional land which could accommodate approximately 600,000 square feet of additional development.

"The acquisition of Cityplace represents an opportunity to acquire a premier, Class AA asset at a price that is significantly below replacement cost," stated Thomas F. August, President and CEO of Prentiss Properties. "Our 10-year relationship with 7-Eleven, whereby we have acted as their leasing representative for the building, gave us a unique ability to underwrite the acquisition and meet 7-Eleven's need for flexibility. Concurrent with this acquisition, 7-Eleven has hired Prentiss as its tenant representative to explore future space requirements upon maturity of their lease in three years."

The acquisition is expected to yield an initial cash-on-cash return of 6.9 percent and a 7.6 percent GAAP return. In addition, many leases have below market rents and the GAAP yield is expected to improve once FAS 141 adjustments are finalized.

For photographs of the building, please visit the Company's website at www.prentissproperties.com.

Natomas Corporate Center

The Company also announced that it has entered into a binding contract to sell all of its office properties located in Sacramento, Calif., to a partnership of Touchstone Investments and AG West Investors for a sales price of approximately $83 million. The sales price includes an estimated $7 million cost of defeasance of the first mortgage lien on the properties. The actual cost of defeasance will be paid by the buyer and may fluctuate based upon market movements in interest rates prior to the closing of the sale. Closing of the sale is expected in the second quarter of 2004. The sale will result in a significant gain on sale which will be determined once the cost of the debt defeasance is finalized. Proceeds from the sale will be used to help fund asset acquisitions in the Company's core markets.

The sale includes six buildings encompassing 566,181 square feet located approximately five minutes north of downtown Sacramento. The buildings were built between 1984 and 1991 and were acquired by Prentiss Properties in 1997. The buildings are currently 89 percent leased with 28 percent of the net rentable square feet scheduled to expire or expected to be vacated in 2004 and 2005. Under the terms of the agreement, the Company will continue to manage and lease the buildings for the new owner. After the sale, the Company's only remaining holdings in Sacramento will be 10.9 acres of land within the Natomas Corporate Center office park which can be developed into a future office development of approximately 176,000 square feet.

About Prentiss Properties Trust

Prentiss Properties Trust is a self-administered and self-managed real estate investment trust ("REIT"). It owns interests in 137 operating properties with approximately 17.8 million square feet -- 15.5 million of office properties and 2.3 million of industrial properties. The Company has no development projects in the portfolio at this time. The Company, through various management subsidiaries, manages approximately 28.8 million square feet of office and industrial properties owned by Prentiss, its affiliates and third parties.

With its headquarters in Dallas, Prentiss Properties focuses on the ownership of office properties in Metropolitan Washington D.C., Chicago, Dallas, Austin, Northern California and Southern California. It is a full service real estate company with in-house expertise in areas such as acquisitions, development, facilities management, property management and leasing.

Statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of the Private Litigation Reform Act of 1995. Such statements may use words such as "anticipate," "believe," "estimate," "expect," "intent," "predict," "project" and similar expressions as they relate to Prentiss Properties Trust or our management. When we make forward-looking statements, we are basing them on our management's beliefs and assumptions, using information currently available to us. Although we believe that the expectations reflected in the forward-looking statements are reasonable, these forward-looking statements are subject to risks, uncertainties and assumptions including the risks discussed in our filings with the Securities and Exchange Commission. If one or more of these risks materialize, or if our underlying assumptions prove to be incorrect, actual results may vary materially from what we projected. Any forward-looking statements contained in this press release reflect our current views with respect to future events and are subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We have no current intention, and disclaim any obligation, to update or revise any forward-looking statements, whether as a result of new information, future results or otherwise.

For more information on Prentiss Properties Trust, visit the Company's website at www.prentissproperties.com.