Transaction Reflects Trend of Public Real Estate Companies Selling to Private
 Buyers; Discretionary Capital Source Key to CMD Closing Transaction Quickly
                               And Efficiently

    PHOENIX, Sept. 17 /PRNewswire/ -- In the largest office transaction to
close in the Valley of the Sun in 1999, CMD Realty Investors, Inc., one of the
nation's leading private investors of suburban office properties, today
announced it has closed on the purchase of three suburban office buildings in
Phoenix from Cornerstone Properties, Inc. (NYSE: CPP), a real estate
investment trust (REIT).
    The properties -- which include the Biltmore Lakes Corporate Center,
Gateway I and II and Scottsdale Centre -- total approximately 585,000 square
feet and bring CMD's suburban office portfolio to approximately 850,000 square
feet in Phoenix.
    David Warren, senior vice president responsible for CMD's acquisitions in
the western U.S. and Atlanta, coordinated the transaction.
    According to Warren, the transaction is in keeping with CMD Realty
Investors' acquisition strategy in the Phoenix market.  He also says the deal
reinforces the trend of public real estate companies (REITs) selling all or
portions of their local portfolios to private buyers with discretionary
capital like CMD.
    "After the William Wilson & Associates merger with Cornerstone Properties
in late 1998, the combined publicly-traded entity, Cornerstone Properties,
Inc., made the decision to shift its presence out of certain markets that were
not consistent with its core strategy, Phoenix being one of them," said
Warren.  "Not only did their exit strategy fit nicely with our growth
strategy, but they were extremely confident that CMD had the financial
resources to make the deal happen."
    CMD has maintained an active presence in Phoenix since the 1960's, with
several million square feet of industrial development.  In the early to mid-
1990's, the company sold its Phoenix-area industrial inventory as part of an
overall strategy to focus on suburban office acquisitions.  In addition to the
latest acquisition, CMD's Phoenix portfolio also includes The Pabellon, a
54,000-square-foot, Class A building in Scottsdale, and The Forum, a 205,000-
square-foot Class A suburban office building located on Scottsdale Road, south
of Lincoln.
    "This transaction is the latest example of our investment strategy in
Phoenix which focuses on suburban office properties with exceptional location
and quality," said Warren.  "Each of these properties is well-known and has an
excellent location in its respective submarket."

    About Biltmore Lakes Corporate Center
    Located at 2910-3030 East Camelback Road in Phoenix, Biltmore Lakes
Corporate Center is a six-building complex comprised of 207,270 square feet of
space.  Built in 1981, the complex maintains a premier office location within
the Camelback Corridor, offering exceptional views, backing up to a green belt
area with lakes.  Major tenants include Prudential Insurance, Richmond
American Homes, Acordia of Arizona and North American Mortgage.

    About Gateway I & II
    Gateway I & II are 4-story, Class A suburban office buildings totaling
212,268 square feet.  Located at 426 & 432 North 44th Street in Phoenix, the
buildings have an excellent central location with freeway access and proximity
to the airport.  Built in 1985 & 1986, Gateway I & II are granite-clad with
structured parking.  Major tenants include Motorola, Huber Huut & Nichols,
Kaufman & Broad and McDonalds Corporation.

    About Scottsdale Centre
    Located at 7373 North Scottsdale Road, Scottsdale Centre is a 2-story,
Class A suburban office building comprised of 166,184 square.  Built in 1985,
the building enjoys an excellent location in North Scottsdale with good
visibility, golf course views and access to Scottsdale Road.  Major tenants
include First Bank of Arizona, Fidelity Investments, Denamerica and Keller
Williams.

    About CMD Realty Investors, Inc.
    CMD Realty Investors, Inc., is a Chicago-based privately held real estate
firm specializing in the acquisition, development, leasing and management of
suburban office properties nationwide.  Founded in 1902, the company operates
through a network of regional offices to maximize its local expertise and
centralizes capital markets, disposition, legal and accounting functions to
benefit from the firm's national market knowledge.
    CMD currently owns and operates a portfolio of more than 10 million square
feet of space with primary offices located in Durham, NC, Ft. Lauderdale,
Dallas, Houston, Denver, Phoenix, Washington, D.C. and Atlanta.

    About Cornerstone Properties, Inc.
    Cornerstone Properties is an equity real estate investment trust (REIT)
representing the highest quality office portfolio that is available in the
public market.  Cornerstone ranks among the top four office REITs in the
nation and invests exclusively in Class A office properties in major
metropolitan and prime suburban locations throughout the United States.
Cornerstone's headquarters are located in New York City, while the Company's
western division, known as Wilson Cornerstone, is based in San Mateo,
California.  The Company also has offices in Atlanta and Boston.

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