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Glenborough Acquires Class ''A'' Office Property in Northern, Va
Press Release
Feb. 9, 2005

SAN MATEO, Calif.--(BUSINESS WIRE)-- Feb. 9, 2005--Glenborough Realty Trust Incorporated (NYSE:GLB - News; GLB PrA) announced that it completed the $71.7 million acquisition of Metro Place II, an office property located in Merrifield, VA. Metro Place II is 100% leased primarily to defense industry tenants. The property is not subject to any lease expirations until 2009.

The property consists of a ten-story Class "A" multi-tenant office building that totals 234,466 net rentable square feet and a six-level parking garage. The property is located across the street from the Dunn Loring-Merrifield Metrorail station, on Park Tower Drive in Merrifield, Virginia, just east of the intersection of Park Tower Drive and Gallows Road. Metro Place II is situated just west of the interchange between the Capital Beltway (I-495) and I-66, and is located minutes from Route 50, Route 29 and Gallows Road, which provide access to the entire Northern Virginia region. An estimated 300,000 vehicles per day travel past Metro Place II along Interstate 495, while an additional 189,000 vehicles drive past the Property along Interstate 66. The Property is approximately 10 miles from downtown Washington, DC and four miles from Tysons Corner.

Metro Place II is located steps from the Dunn Loring-Merrifield Metro station. A Metrorail station can create significant demand from tenants, specifically government contractors, who must comply with the federal government's requirement that certain federal contracts be serviced by a location near a Metro station. The presence of a Metrorail station is also a significant amenity to tenants whose employees commute either from the suburbs or from downtown locations. Many tenants need to draw from the labor pool in the suburbs, but also need easy access to their customers in downtown Washington, DC. The area surrounding the Dunn Loring-Merrifield Metrorail station is rapidly evolving into an urban, pedestrian-friendly 24 hour environment.

Completed in 1999, distinguishing features of the Property include a dramatic lobby with marble floors, stainless steel elevator doors and a decorative ceiling. The Property also features an on-site exercise facility offering weight and aerobic equipment. Floor sizes average 23,000 square feet with a center core design which allows the property to efficiently accommodate both single floor and multi-tenant configurations while maximizing the window lines. Parking is provided for 829 vehicles or 3.5 spaces per 1,000 square feet. There are 35 executive parking spaces under the office building and approximately 794 spaces in the six-level parking structure adjacent to the building.

Andrew Batinovich, President and CEO commented, "This asset offers a stable long-term investment yield due to the credit tenancy, remaining lease terms, current high occupancy, and the minimal need for future capital improvements due to the building's recent construction. Overall, the property benefits from a prime evolving urban location in Merrifield within walking distance of the Dunn Loring-Merrifield Metrorail station and close proximity to abundant amenities, excellent infrastructure, an attractive residential community as well as Washington, D.C., and other Northern Virginia locations."

Proceeds for the acquisition were provided by the recently completed sale of Rockwall I & II, a 343,000 square foot office complex located in Rockville, MD, for a total price of $76.7 million. Rockwall I and II were built in the mid 1970s. The gain on sale in the Rockwall transaction will be approximately $17 million. The Company utilized a 1031 tax deferred exchange to complete the acquisition of Metro Place II.

Glenborough is a REIT which is focused on owning high quality, multi-tenant office properties concentrated in Washington D.C., Southern California, Boston, Northern New Jersey, and Northern California. The Company has a portfolio of 62 properties encompassing approximately 11 million square feet as of December 31, 2004.

Source: Glenborough Realty Trust Incorporated