Rubenstein Completes $1 Billion Disposition Plan, Opens New Chapter for Company

Philadelphia, PA., September 27, 2004— The Rubenstein Company, L.P. (Rubenstein) has much to celebrate. In the last few weeks it has closed on the disposition of commercial holdings in a series of deals worth approximately $1 billion — and opened a new chapter in the company’s investment future. On Friday, Rubenstein closed the most recent deal, a property in Tyson’s Corner, Va., valued at $112.5 million. The deal follows the highly-publicized $600 million transaction with an affiliate of Brandywine Realty Trust, which closed last Tuesday. Lehman Brothers acted as financial advisor to Rubenstein on both transactions.
In disposing of their holdings at what many see as the peak in the real estate market, the company has propelled itself into an entirely new phase of investment strategy. It begins this new chapter with no outside investors, a “clean slate” of properties, and 35 years of office real estate expertise. Moving forward, the Philadelphia-based firm plans to connect with a select group of investors, many of whom the company has held discussions with in the past. Discussions will focus on the application of Rubenstein’s expertise to potential investments in multi-tenant, mid or high rise office buildings and commercial campuses throughout the Mid-Atlantic and Northeastern region.
“We are excited about the future and the new investment phase in our company’s successful evolution,” said David Rubenstein, president and CEO. As to specific structure of a new investment vehicle, Rubenstein explained that “a fund structure would be the likely candidate. We’re looking to team up with investors whose goals match up with our expertise, but we don’t want to limit ourselves to pre-determined options.”

“We will take some time to figure out the most efficient financial platform to enable us to implement our creative investment strategies in the commercial office sector,” said Rubenstein. “To succeed in this environment, you’ve got to have the insight, experience and confidence to capitalize on the opportunities as they present themselves. It’s the only way you can deliver superior risk-adjusted returns for your investors, which is ultimately the key to success.”

While the Company has monetized a number of holdings, Rubenstein retains a strong foundation of industry knowledge and a reputation for assembling sophisticated deals. One of its most recent successes involved solidifying a virtual monopoly in the premier suburban Philadelphia submarket by adding the Wyeth-Ayerst campus to the Radnor Corporate Center, a five-building, approximately 750,000 square foot campus the company already owned. The deal is a case model for the Company’s ability to win prime opportunities and convert them to vehicles for growth.

In the Wyeth deal, Rubenstein had acquired one of the largest single chunks of premier Main Line real estate available in decades, and further enhanced its value through renovation and redevelopment. After a series of financing and recapitalization strategies, the Company relinquished this Main Line monopoly position as part of the deal with Brandywine Realty Trust.

Real estate investment fund authority Dean Adler of Lubert-Adler is optimistic about the company’s new forward strategy. “The Rubenstein organization has consistently been, for over three decades, one of the most astute investors in the region,” said Adler. “They do not invest in an abundance of transactions, but when they do, the investments tend to be large, creative and very profitable for their investors. Historically, they seem to know when it is time to invest and when it is time to divest.”

Led by David Rubenstein, the existing team will continue to uncover opportunities to add value to office-building related properties through redevelopment, lease-up, refinancing and other activity. The team will also continue to manage Rubenstein’s existing holdings, which consist of approximately $100 million in assets, comprised primarily of land in Pennsylvania. In addition to the land, which has a development potential of more than 3 million square feet, Rubenstein retains ownership interest in more than 1.8 million square feet of office space and management and leasing assignments for more than 3 million square feet of office space.


About The Rubenstein Company, L.P.
The Rubenstein Company, L.P. (TRCLP) is a fully integrated real estate organization specializing in the financing, acquisition, development, asset management, leasing, property management and disposition of Class A office building-related real estate. Begun as a sole proprietorship by Mark E. Rubenstein in 1969, TRCLP has since grown steadily into one of the largest private owners and operators of prominent office properties in the Mid-Atlantic region. Following the profitable disposition of many of their core assets in 2004, the TRCLP management team, led by David Rubenstein, continues to manage its ownership interest in more than 1.8 million square feet of office space and operate more than 3 million square feet of office space. The company also owns land with development rights for an additional 3 million square feet.