Allegiance Realty Corporation

CASE STUDY
DISPOSITION PERFORMANCE

PROPERTY Atrium Corporate Campus & Executive Center Portfolio
Somerset, New Jersey

Atrium Corporate Campus is a four-building, 952,400 sf office complex and exhibit center situated on 66.7 acres in Somerset. The Corporate Campus is considered among New Jersey’s premier office parks and is situated in one of the state’s strongest sub-markets. Campus Drive Executive Center is comprised of two four-story office buildings totaling 200,000 sf, situated on 12.8 acres. This property was acquired from Goldman Sachs, an Institutional seller, in an off-market transaction.

TYPE Atrium: Class A  |  Campus: Class B
PORTFOLIO SIZE 1,152,400 SF
ACQUISITION DATE January 27, 2005
PURCHASE PRICE $78,300,000
CAPITAL RAISE Institutional Equity Partner:  Rockpoint Group;
Lender:  Istar Financial
ASSET MANAGEMENT

Completed aggressive expense reduction strategy leading to a cost savings of more then $1 million annually. Implemented multi-million dollar capital improvement plan for repositioning strategy. Initiated aggressive marketing and leasing strategy with two national brokerage firms leading to lease-up of over
300,000 sf.

DISPOSITION DATE December 19, 2005
SALES PRICE $103,850,000
HOLD PERIOD 11 Months
INVESTOR IRR 56%

DISPOSITION STRATEGY
Within nine months of acquisition, peak market conditions were identified and early achievement of maximum asset value and project momentum were recognized. Through the implementation of a previously well defined disposition strategy the sale was completed within eleven months of acquisition, producing a 56% IRR.

Albuquerque Plaza