RER Equities and New Boston Fund Acquire 450,000 SF Capital One Buildings in Richmond, VA.

HERNDON, Va. -- A joint venture of RER Equities, Inc. of Herndon, Virginia and New Boston Fund has acquired two Richmond, Virginia area Class A office buildings totaling 453,660 gross square feet from Capital One Financial Corporation. The 35-acre complex is located near the intersection of I-295 and I-64, across the street from the entrance to the highly acclaimed Innsbrook Corporate Center in Henrico County. A five-acre undeveloped land parcel in this premier office market was included in the acquisition.

"This acquisition provides us with a signature institutional-quality property in a landmark location," said Christopher Kallivokas, Chairman of RER Equities, Inc. "This property matched our opportunistic investment criteria perfectly, with its incomparable location and additional development potential."

The new ownership plans to lease the buildings to corporate tenants after Capital One, which leased back the space, vacates the property in late 2005. The largest employer in Richmond, Capital One is moving to a new 350-acre corporate office campus at West Creek Office Park in Goochland County, about ten minutes away.

RER/New Boston has plans to enhance the property's value through strategic leasing of the existing office buildings and realization of opportunities presented by the developable land that was included in this acquisition. "There is a significant demand for quality restaurants in the area, as well as for day care facilities," noted Bruce Levy, RER Equities' CEO.

The property was originally developed by Bank of Virginia, which changed its name to Signet Banking Corporation in 1986. In 1995, Capital One was spun off from Signet in one of Virginia's most astounding business success stories.

The five-story Operations Center at 11011 West Broad Street was constructed in 1976 with 243,357 gross square feet, including a first-floor employees' cafeteria that may be converted to a food court or retail center by the new ownership. The 210,303 GSF Card Center at 11013 West Broad Street, linked to its sister building by a two-story covered walkway, was completed in 1987 with raised flooring that accommodates high-tech wiring.

"This opportunity fit very well into our investment philosophy of acquiring well-located assets where we can add value through re-leasing and re-positioning," said James Kelleher, senior vice president and director of acquisitions at New Boston Fund.

"We have a track record of helping corporations like Capital One dispose of excess real estate in a win-win structure," added Jerry Rappaport Jr., president of New Boston Fund. "We are confident in RER's ability to reposition the building to attract local corporations to this high-quality, low-cost facility."

B. K. Allen of B.K. Allen Real Estate represented the joint venture in the transaction. The seller, Capital One Financial Corporation, was represented by Guy Ponticiello of Jones Lang LaSalle.