BOSTON, Oct. 21 /PRNewswire/ -- Beacon Properties Corporation (NYSE: BCN)
announced today that the company has acquired two Class A office buildings in
Rosslyn, Virginia, for $99.1 million, increasing year-to-date acquisitions to
approximately $700 million.
    The acquisitions, funded from a $300 million credit facility led by
BankBoston Corporation, represent 665,000 square feet and bring Beacon's
holdings in the Washington, D.C. area to approximately 2.3 million square
feet.  The two 19-story buildings, 1616 North Fort Myer Drive and 1300 North
l7th Street, are located near the Potomac River directly across from downtown
Washington, D.C.  The combined occupancy of the buildings is 97 per cent.
    Alan M. Leventhal, Beacon's president and chief executive officer,
commented, "Our acquisitions in Rosslyn, Virginia, contribute to the ongoing
implementation of Beacon's focused national office strategy.  The company's
objective is to invest in large national markets with strong supply and demand
fundamentals and to create a strong presence in each of our target markets,
which currently include Washington, D.C., Boston, Atlanta and Chicago.  So far
in 1996, we have completed nearly $700 million of acquisitions pursuing this
strategy and increased our total portfolio to more than 12 million square
feet."
    Since Beacon's IPO in May 1994, the company has acquired nearly $1 billion
of office properties.  In addition to the two Rosslyn, Virginia, properties,
this year's completed acquisitions include the 32-building Perimeter Center in
Atlanta, Georgia, six buildings in suburban Chicago, three buildings in
Fairfax County, Virginia, and one building in Washington, D.C.  The
44 buildings acquired so far in 1996 comprise about 5.5 million square feet.
    Beacon Properties Corporation is a self-administered and self-managed real
estate investment trust (REIT).  One of the nation's largest office REITs,
Beacon currently owns or has an interest in 70 properties totalling
approximately 12.2 million square feet.  The company specializes in property
acquisitions, management, leasing, design, construction and development.
Further information is available at the company's Internet site:
http://www.beaconproperties.com.
    Certain matters discussed in this press release are forward-looking
statements within the meaning of the Federal securities law.  Although Beacon
believes that the expectations reflected in such forward-looking statements
are based upon assumptions, it can give no assurance that its expectations
will be achieved.  Factors that could cause actual results to differ
materially from Beacon's current expectations include general economic
conditions, local real estate conditions, timely releasing of occupied square
footage expiration, interest rates, availability of equity and debt financing
and other risks detailed from time to time in the company's filings with the
Securities and Exchange Commission, including quarterly reports on Form 10-Q,
reports on Form 8-K and annual reports on Form 10-K.
    NOTE: 1. Based on annualizing rental income from signed leases in place as
of September 1, 1996, the combined net operating income of the Rosslyn,
Virginia, properties (including $600,000 in straight-line rents) is
approximately $11.5 million.
    2. Beacon intends to invest approximately $3.1 million in capital
improvements to the Rosslyn properties over the next three years, including
upgrades to the parking garage and various interior spaces.
    3. The purchase price of $99.1 million is estimated to be approximately
70 per cent of replacement cost.
    4. According to Grubb & Ellis, the office vacancy rate in the Rosslyn-
Ballston submarket is currently 6.5 per cent.  Net absorption through the
second quarter of 1996 totalled 200,000 square feet.  The vacancy rate for the
metropolitan Washington, D.C. market is currently less than 10 per cent.

Link to this page: