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Contact: Nick Derasmo (212.841.7505)

PRINCIPAL REAL ESTATE INVESTORS FORMS VENTURE WITH TWININGS TO DEVELOP RESIDENTIAL TOWER NEXT TO MIT

Thursday, January 29, 2004 - Cambridge, MA - Sonnenblick-Goldman Company arranged a joint venture between Principal Real Estate Investors -- on behalf of its Principal U.S. Property Account -- and Twining Properties to develop a luxury residential tower in Cambridge, MA. The 24-story tower, with 324 apartments, will be the tallest building in the 1.3-million square-foot Kendall Square Project adjacent to MIT and overlooking the Charles River. Lyme Properties, master developer for Kendall Square, has recently completed the new Genzyme headquarters, research labs for Vertex and a 1,400 car underground parking garage. Twining Properties acquired development rights above the parking garage from Lyme and plans to commence construction later this year. A requirement of the Kendall Square masterplan is that each building be designed by a world-class architect. The apartment tower, designed by CBT Architects, uses a dramatic 230- foot glass façade to form a beacon for Kendall Square that is highly visible from Boston. The tower will include retail and a health club, and will be connected to a luxury hotel and situated directly across the street from a world-class performing arts center. Principal Global Investors is the dedicated real estate group of Principal Life Insurance Company, based in Des Moines, IA. Twining Properties, founded by Alex Twining, formerly with Morgan Stanley and AvalonBay Communities, has offices in Boston and New York. "Principal’s extensive experience investing in urban real estate development is a perfect match with Twining Properties’ focus on complex urban mixed-use developments in Boston, New York City and Washington, D.C.," explains Steve Kohn, president of Sonnenblick-Goldman. "Quality rental apartments located in a high-barrier-to-entry market, such as Cambridge, are an excellent long-term investment for clients of our U.S. Property Account," says Rod Vogel, managing director, Principal Real Estate Investors. Alex Twining, principal of Twining Properties, adds, "We are fortunate to have acquired one of the finest development sites in the Boston marketplace." The Principal U.S. Property Account is a commingled fund of real estate equity investments for retirement plans. The fund primarily invests in fully developed, income- producing commercial properties. It currently includes investments in more than 100 office, industrial, multifamily and retail properties across the United States. About Principal Real Estate Investors: www.principalglobal.com Principal Real Estate Investors, the dedicated real estate group of Principal Global Investors, manages or subadvises over $24 billion in commercial real estate assets. Principal Real Estate Investors is the sixth largest institutional real estate manager in the United States based on tax-exempt assets under management. Principal Global Investors is a diversified asset management organization and a member of the Principal Financial Group®, with expertise in equities, fixed income and real estate investments, as well as specialized overlay and advisory services. Principal Global Investors manages $108 billion in assets for retirement plans and other institutional clients. About Twining Properties: www.twiningproperties.com Twining Properties is a real estate investment and development company focused on urban mixed-use development in Boston, New York City and Washington, D.C. Principals of Twining Properties were formerly with Morgan Stanley, JP Morgan, AvalonBay Communities and CareMatrix and have over 100 years experience in real estate acquisition, financing, development, leasing and asset management, including over two million square feet for MetroNexus owned by Morgan Stanley. For information contact Anne Pennington, Twining Properties, at (212) 704-0920 or anne.pennington@twiningproperties.com.

Sonnenblick-Goldman, LLC is the industry’s leading independent real estate investment banking firm. Founded in 1893 to serve the financing needs of the real estate industry, Sonnenblick-Goldman, LLC provides a full range of financial services, including debt and equity placements, joint ventures, investment sales and advisory services. Headquartered in New York, Sonnenblick-Goldman maintains offices in San Francisco, Boston, Hong Kong, Shanghai, Sydney and Tokyo. Further information can be found at Sonnenblick-Goldman, LLC’s website at www.cushwake.com/sonngold.