COSTAR REPORT 2/26/07

Brookfield Flips Former JPMorgan Bldgs. to Crystal River
Two-Bldg. Portfolio in Phoenix & Houston Trades for $234 MillionBrookfield Asset Management (NYSE: BAM) is selling two fully leased office buildings in Houston and Phoenix to Crystal River Capital (NYSE: CRZ) in a deal valued at about $234 million. The 1.2 million-square-foot transaction includes the 750,000-square-foot Chase Tower -- Arizona's tallest building -- at 201 N. Central Ave. in downtown Phoenix, and the 412,500-square-foot North American Technology Center at 1111 Fannin St. in downtown Houston. JPMorgan Chase anchors both buildings under 15-year, triple net leases. Toronto-based Brookfield, which teamed with Blackstone Group to acquire Trizec Properties and Trizec Canada last year for $8.9 billion, acquired the two buildings last fall on behalf of Brookfield Real Estate Opportunity Fund in a 33-property, $460 million portfolio acquisition from JPMorgan Chase. That deal also included Chicago's landmark 300 S. Riverside Plaza office building and Milwaukee's 472,500-square-foot Chase Tower. "These are high-quality acquisitions that we believe will be immediately accretive to our stockholders and reflect the benefit of our association with Brookfield's operating platforms," said Clifford Lai, president and CEO of Crystal River. The New York-based REIT is externally managed and advised by affiliates of Brookfield Asset Management. Crystal River also announced it purchased a $28.5 million investment in BREF One LLC, a real estate finance fund sponsored by Brookfield Asset Management. For more information see www.houstonrealtyadvisors.net