ARLINGTON, Va., March 3 /PRNewswire/ -- Charles E. Smith Residential
Realty, Inc. (NYSE: SRW) announced today that it has acquired the Kenmore
Apartments, a 376 unit luxury high-rise property on upper Connecticut Avenue
in northwest Washington, DC, in exchange for equity in the form of Smith REIT
Operating Partnership Units (OP Units), together with the assumption of debt.
Total value of the transaction was approximately $15.6 million, including
issuance of 510,674 Operating Partnership Units and assumption of
approximately $1.2 million in loans, and other costs.  The Kenmore increases
the Smith REIT's presence in the prestigious Connecticut Avenue corridor to
2,843 apartment units in 10 properties.
    Ernest Gerardi, Jr., president of the Smith REIT, said: "This property is
an excellent addition to our strong concentration in the high demand
Connecticut Avenue corridor and further increases our ability to take
advantage of marketing and operational efficiencies.  It also completes the
commitment, involving the acquisition of three properties, we made to our
investors in conjunction with our recent follow-on stock offering."
    The OP Unit exchange approach used by the Smith REIT in its three recent
acquisitions is a special feature available only to certain REITs known as
"UPREITs."  It is particularly advantageous to longer term property owners
with low or negative tax basis for whom a cash sale would cause a taxable
gain, because it allows deferral of income taxes on the transaction.
    The Kenmore is a 376 unit 11-story luxury high-rise located at 5415
Connecticut Avenue in northwest Washington, D.C. It averaged 97% occupancy in
1995 and 1996 and had an average monthly revenue of $665 in 1996.  The
addition of the Kenmore brings the Smith REIT's concentration in the
Connecticut Avenue corridor to 2,843 apartment units in 10 properties, further
extending the company's operating efficiencies in this submarket.
    The Connecticut Avenue corridor has long been and continues to be the
location of choice for many professionals and others working in downtown
Washington, D.C. because of the prestige of its address, its convenient access
to downtown by car or Metro and an excellent selection of fully serviced
well-maintained luxury apartment buildings.  Because of this continuing strong
demand, and limited new development in recent years, this submarket
consistently maintains occupancies of better than 96%.
    Charles E. Smith Residential Realty, Inc. is a self-managed real estate
investment trust and the largest publicly traded multifamily real estate
company with operations focused on the greater Washington, D.C. area.  The
company and its subsidiaries and affiliates own, acquire, develop and manage
multifamily residential rental properties, as well as providing real estate
services to other property owners.  Press releases and other investor
information about Charles E. Smith Residential Realty are available on the
company's Web site at: http://www.smithreit.com; and are also available
through PR Newswire Company News On Call, by fax, 800-758-5804, ext. 101271 or
at: http://www.prnewswire.com.

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