NTIQ Netiq (MM)

WASHINGTON, Jan. 13 /PRNewswire-FirstCall/ -- CarrAmerica Realty Corporation (NYSE:CRE) announced today that it has purchased 3553 North First Street from NetIQ Corporation (NASDAQ:NTIQ). CarrAmerica paid $10.3 million for the 85,585 square foot office building in San Jose, California. The property is expected to provide a year one GAAP return of 2.2% and a stabilized GAAP return of 9.3%. These expected yields reflect a four month leaseback to NetIQ and speculative leasing of the building thereafter. (Logo: http://www.newscom.com/cgi-bin/prnh/19990820/CRELOGO ) CarrAmerica Managing Director for Northern California, Christopher Peatross, commented, "This acquisition gives us an excellent opportunity to reposition 3553 North First Street, which offers a prime location along the North First Street corridor in San Jose. Currently, the building has new interiors, state-of-the-art building systems and abundant on-site amenities, including tennis, bocce and basketball courts; ample parking; a fitness center with shower facilities; a cafe; and an outside patio with a built-in barbeque. We plan to renovate the exterior, which will upgrade the entire project to Class A status." Mr. Peatross added, "The property is strategically located between two CarrAmerica properties, 3571 North First Street and Rio Robles Technology Park, allowing us tremendous flexibility to accommodate the diverse needs of tenants seeking space in the North First Street Corridor." Completed in 1984, 3553 North First Street is located on the high profile corner of North First Street and Rio Robles and is one-half block south of a Light Rail substation. The building is 60% one-story and 40% two-story, with 10 to 15 foot ceiling heights. The site is a five-minute commute from San Jose Airport and offers pedestrian access to the largest residential development in San Jose. The listing brokers in this transaction were John Brady of CRESA Partners and Gregg von Thadden of Colliers International. In Northern California, CarrAmerica now owns, directly or through joint ventures, interests in 89 office and R&D buildings containing 6.9 million square feet. CarrAmerica owns, develops and operates office properties in 12 markets throughout the United States. The company has become one of America's leading office companies by meeting the needs of its customers with superior service, a large portfolio of quality office properties and extraordinary development capabilities. Currently, CarrAmerica and its affiliates own, directly or through joint ventures, interests in a portfolio of 294 operating office properties, totaling approximately 27 million square feet. CarrAmerica's markets include Austin, Chicago, Dallas, Denver, Los Angeles, Orange County, Portland, Salt Lake City, San Diego, San Francisco Bay Area, Seattle and metropolitan Washington, D.C. For additional information on CarrAmerica, including space availability, visit our web site at http://www.carramerica.com/. Estimates of Diluted FFO and earnings per share and certain other statements in this release, including management's expectations about, among other things, operating performance and financial conditions, may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, dividends, achievements or transactions of the company and its affiliates or industry results to be materially different from any future results, performance, achievements or transactions expressed or implied by such forward-looking statements. Such factors include, among others, the following: national and local economic, business and real estate conditions that will, among other things, affect demand for office space, the extent, strength and duration of any economic recovery, including the effect on demand for office space and the creation of new office development, availability and creditworthiness of tenants, the level of lease rents, and the availability of financing for both tenants and us; adverse changes in real estate markets, including, among other things, the extent of tenant bankruptcies, financial difficulties and defaults, the extent of future demand for office space in our core markets and barriers to entry into markets which we may seek to enter in the future, the extent of the decreases in rental rates, our ability to identify and consummate attractive acquisitions on favorable terms, our ability to consummate any planned dispositions in a timely manner and on acceptable terms, our ability to successfully reinvest the proceeds from dispositions in other properties or markets with improved returns, our ability to complete development projects on time and within budget and our ability to stabilize such projects, and changes in operating costs, including real estate taxes, utilities, insurance and security costs; actions, strategies and performance of affiliates that we may not control or companies in which we have made investments; ability to obtain insurance at a reasonable cost; ability to maintain our status as a REIT for federal and state income tax purposes; ability to raise capital; effect of any terrorist activity or other heightened geopolitical crisis; governmental actions and initiatives; and environmental/safety requirements. For a further discussion of these and other factors that could impact the company's future results, performance, achievements or transactions, see the documents filed by the company from time to time with the Securities and Exchange Commission, and in particular the section titled, "The Company -- Risk Factors" in the company's Annual Report or Form 10-K. http://www.newscom.com/cgi-bin/prnh/19990820/CRELOGO http://photoarchive.ap.org/ DATASOURCE: CarrAmerica Realty Corporation CONTACT: Maureen Wheeler of CarrAmerica Realty Corporation, +1-202-729-1756, Web site: http://www.carramerica.com/

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