$1.2 Billion Invested by Beacon in 1996; Portfolio Now Totals 15.8 Million S/F

    BOSTON, Jan. 6 /PRNewswire/ -- Beacon Properties Corporation (NYSE: BCN)
announced today that it has acquired Presidents Plaza, a 791,000 square foot
four-tower office property located near O'Hare International Airport in
Chicago, Illinois.  The purchase price was $77 million.
    With the completion of the Presidents Plaza purchase, Beacon recorded a
final total of $1.2 billion in acquisitions during 1996.  Targeting a select
number of large national markets, the company increased its portfolio to
104 office buildings totaling 15.8 million square feet.
    Beacon acquired Presidents Plaza from Metropolitan Life Insurance Co., New
York, in exchange for a combination of cash and operating partnership units.
Major tenants in the property include Cotter & Co., Wilson Sporting Goods and
the Gas Research Institute.  The property, 8600 and 8700 West Bryn Mawr
Avenue, consists of two sets of 10- and 12-story towers and is 91 percent
leased.  The property adjoins the O'Hare-to-downtown Chicago rail link.
    Presidents Plaza is the third property acquired by Beacon in the Chicago
office market.  The purchase increased its presence in the city's suburban
regions to approximately 1.6 million square feet, equivalent to 11 percent of
the company's total portfolio.  In August, 1996, Beacon purchased the five-
building, 548,000 square foot Tri-State International suburban office campus
in Lincolnshire, Illinois, and AT&T Plaza, a 225,318 square foot building in
Oak Brook, Illinois.
    The combined net operating income (NOI) of Presidents Plaza is estimated
at approximately $8.4 million (including $2.84 million in straight-line rents)
based on the annualized rental income from leases in place.  The company
expects to invest an additional $1 million for non-recurring capital
expenditures.  Through a combination of contractual rent increases and lease-
up of currently vacant space, the NOI is expected to increase by over
$2 million by next year.  The purchase price of $77 million is estimated to be
about 60 percent of replacement cost.
    Alan M. Leventhal, president and chief executive officer of Beacon,
commented: "The purchase of Presidents Plaza in Chicago completes a year which
saw the transformation of Beacon from a regional to a national office REIT.
Our national strategy is focused on investing in a select number of large
metropolitan markets chosen for their strong supply and demand
characteristics.  During the coming year, we plan to reinforce our presence in
the target markets we have identified."
    Beacon's 1996 acquisition program was facilitated by three successful
public offerings of the company's common stock.  In all, the company issued a
total of 27.6 million shares and raised nearly $800 million in gross proceeds.
At year-end, common stock outstanding totaled 54.4 million shares (including
6.3 million that may be issued upon redemption of operating partnership
units).  Beacon's market capitalization totaled approximately $2 billion and
its total capitalization, including $698 million in debt, amounted to
$2.7 billion.  The company's debt-to-total capitalization ratio was
26 percent, down from 35 percent at year-end 1995.
    Until 1996, Beacon's portfolio was concentrated in the Greater Boston
metropolitan area and characterized by a higher ratio of urban to suburban
office properties.  With its $336 million acquisition of Perimeter Center in
suburban Atlanta in February, 1996, Beacon launched its national growth and
diversification strategy.  The acquisition of Presidents Plaza concluded a
year in which Beacon entered the markets of Chicago, Los Angeles and San
Francisco, as well as Atlanta.  Boston and Washington, D.C. complete its
current list of six core metropolitan markets.
    According to Leventhal, "We determined that in 1996 the opportunity had
arrived in the office real estate cycle to move quickly to create a national
presence.  Although not alone in recognizing this opportunity, we have
developed a distinctive approach by targeting a nucleus of large national
office markets.  We believe this strategy provides a strong focus and
discipline which will serve our shareholders best as we continue to grow in
size."
    The office properties purchased by Beacon in 1996 are summarized, by
region, as follows:

    Boston Metropolitan Area
    The New England Executive Park, Burlington, Massachusetts.
    Riverview, Cambridge, Massachusetts.
    Total Square Feet: 1.1 million.

    Atlanta Metropolitan Area
    Perimeter Center, Atlanta, Georgia.
    Total Square Feet: 3.3 million.

    Chicago Metropolitan Area
    AT&T Plaza, Oak Brook, Illinois.
    Presidents Plaza, Chicago, Illinois.
    Tri-State International, Lincolnshire, Illinois.
    Total Square Feet: 1.6 million.

    Los Angeles Metropolitan Area
    10960 Wilshire Boulevard, West Los Angeles, California.
    Total Square Feet: 543,000.

    San Francisco Metropolitan Area
    Shoreline Technology Park, Mountain View, California.
    Lake Marriott Business Park, Santa Clara, California.
    Total Square Feet: 1.1 million.

    Washington, D.C. Metropolitan Area
    The Northridge 1 Building, Herndon, Virginia.
    1616 North Fort Myer Drive, Rosslyn, Virginia.
    1300 North l7th Street, Rosslyn, Virginia.
    The E. J. Randolph Building, Tysons Corner, Virginia.
    The John Marshall Building, Tysons Corner, Virginia.
    1333 H Street, NW, Washington, DC.
    Total Square Feet: 1.5 million.

    With respect to the urban/suburban ratio in Beacon's portfolio, the
acquisitions made by the company in 1996 increased the proportion of Beacon's
suburban properties to 76 percent, compared with 37 percent at year-end 1995.
    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 104 properties totaling
approximately 15.8 million square feet.  The company specializes in property
acquisitions, management, leasing, design and development.  Further
information is available at the company's Internet site:
http://www.beaconproperties.com.
    Certain matters discussed in this press release may constitute 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 reasonable 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 upon 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.

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