Identifies Security Capital Affiliate as Investor
             In $71.5 Million Private Placement Announced in May

    ARLINGTON, Va., Oct. 15 /PRNewswire/ -- Charles E. Smith Residential
Realty, Inc. (NYSE: SRW), a Northern Virginia-based real estate investment
trust specializing in urban multifamily rental properties, announced the
acquisition of luxury high-rise apartment properties in Chicago and Boston
with a total value of approximately $70 million.  The two transactions are
part of the first phase of the Company's program to diversify geographically
from its substantial base in the Washington D.C./Northern Virginia metro area
into other strong metropolitan area markets.
    The Company also announced that Security Capital Preferred Growth
Incorporated, a private affiliate of Security Capital Group Incorporated, is
the investor with which the Company arranged the private placement of
$71.5 million in convertible preferred stock in May, 1997.  Security Capital
Preferred Growth is a private REIT that invests in private and public real
estate operating companies with strong intermediate-term prospects for growth.
    Ernest Gerardi, Jr., president of Smith Residential said, "Our national
expansion strategy is being funded in part with capital supplied by major
institutional investors with significant experience investing in publicly
traded real estate operating companies.  Security Capital Group has been one
of the most successful investors in the securitized real estate market, and we
welcome their affiliate's stock ownership in our Company.  Their investment,
in addition to a separate stock purchase by Prudential of $76 million in
September, demonstrates the strong confidence shown by two major institutional
investors in our Company."
    Daniel F. Miranda, managing director for Security Capital Preferred Growth
stated, "We believe that the real estate industry is still in the early stages
of fundamental change and that securitization of the industry will continue to
grow at a rate similar to what has already taken place in the 1990's."  Mr.
Miranda added, "Within this environment, a number of exciting opportunities
exist to invest in well-managed growth companies, such as Charles E. Smith
Residential, and to facilitate their future growth."
    Gerardi continued, "The transactions in Chicago and Boston are initial
steps in the implementation of the geographic expansion strategy we announced
earlier this year, focusing on acquisitions in urban locations in growing
metropolitan areas.  With these investments in place, we are continuing to
work on an existing pipeline of additional opportunities in key national
markets."
    "Consistent with our current asset profile, both of these acquisitions are
high quality urban high-rise properties in strong metropolitan areas," Gerardi
added.  "Chicago and Boston each have excellent long-term economic growth
outlooks and substantial opportunities for additional investment.  Together
with our portfolio in Northern Virginia and Washington D.C., we now operate in
three of the premier urban markets in the country."
    In Chicago, Smith Residential acquired a 36-story 306-unit luxury
high-rise apartment property -- One East Delaware -- in the desirable Near
North submarket just north of downtown Chicago, and two blocks west of
Michigan Avenue.  The property was completed in 1989 and was 99% occupied on
October 1, 1997.  It also includes 41,726 square feet of commercial space.
The property was acquired from Near North Properties, a private Chicago
developer/manager, in a transaction valued at approximately $43 million using
funds from a Smith Residential bank credit line.  Chicago is forecast to have
the largest total job growth of all U.S. cities by 2005, according to the U.S.
Department of Commerce's Bureau of Economic Analysis, and also has a large,
vibrant 24 hour downtown and a long-term tradition of downtown high-rise
living.
    In Boston, the Company used Operating Partnership units to complete an
exchange for a 188-unit luxury high-rise property -- the Company's first "unit
swap" outside its core Northern Virginia/Washington D.C. markets.  The
16-story property -- 2000 Commonwealth Avenue -- is located in the fashionable
Chestnut Hill section of Boston, overlooking the Chestnut Hill reservoir.  It
was built in 1986, and was 98% occupied on October 1, 1997.  The property was
acquired from Charles River Management, a Boston owner/manager, in a
transaction valued at approximately $27 million, including assumption of
$13 million of debt and issuance of 465,000 Operating Partnership units.
    Smith Residential also noted that in early October it completed settlement
of two high-rise acquisitions announced last month -- the 714-unit Lincoln
Towers property in the Ballston submarket of Arlington County, Virginia for
$88.5 million, and the 564-unit Courthouse Hill property currently under
construction in the Arlington Courthouse section of Arlington County,
Virginia, which upon completion will be valued at over $64 million.  The
Company also completed the sale of a combination of common and preferred stock
to the Prudential Insurance Company for a total of $76 million.
    With completion of these transactions, in 1997 Smith Residential has
completed acquisitions totaling 3,036 units, bringing its total owned
portfolio to 18,236 units -- an increase of 20%, and $286 million since the
first of the year.  In addition, the Company currently has 1,195 units under
construction as part of its development pipeline.
    Charles E. Smith Residential Realty, Inc. is a self-managed real estate
investment trust listed on the New York Stock Exchange (SRW).  The Company and
its subsidiaries and affiliates own, acquire, develop, and manage multifamily
residential properties in addition to providing a full range of real estate
services to other property owners.  The Company owns a portfolio of over
18,000 apartment units and manages an additional 4,000+ units for other
owners.  The total market capitalization of the Company -- Charles E. Smith
Residential Realty, including its Operating Partnership -- is approximately
$1.6 billion.  Investor information including press releases about Charles E.
Smith Residential Realty is available on the Company's Web site at:
http://www.smithreit.com ... and also through PR Newswire Company News on Call
by fax 800-758-5804, ext. 101271, or at: http://www.prnewswire.com.

    Certain items discussed in this press release may be deemed to be forward
looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995.  Although Charles E. Smith Residential Realty, Inc.
believes that such statements are based on reasonable expectations and
assumptions, it can give no assurance that its expectations will be attained.
Factors that could cause actual results to differ materially from the
company's expectations include real estate market conditions, information
determined in the course of due diligence review, changes in local economic
conditions and other risks detailed from time to time in the company's reports
and filings with the Securities and Exchange Commission.  The company assumes
no obligation to update or supplement forward looking statements that may
become untrue because of subsequent events.

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