The primary goal of the Corporate Office Properties' acquisition team is to achieve high cash flow yields over the long-term without taking undue risk. The team has acquired more than $4 billion worth of suburban office properties. Our unique ability to uncover, evaluate and structure strategic acquisitions has allowed us to acquire $165 million worth of properties in 2003, $264 million worth of properties in 2004, $364 million worth of properties in 2005, $180 million worth of properties in 2006 and $378.6 million worth of properties in 2007.

Acquisition Criteria

Corporate Office Properties utilizes an extremely rigorous, disciplined and highly selective acquisition strategy with the following criteria.

Corporate Office Properties Trust is presently seeking:

• high-quality office properties located in suburban markets, preferably in the Mid-Atlantic region
• single or multi-story office properties
• buildings of at least 50,000 square feet of space in size
• portfolio of office buildings located in Mid-Atlantic suburban submarket
• entity transactions of portfolios exceeding $100 million, featuring strong management organizations and a major regional presence. These types of transactions are used to enter new geographic markets.

Acquisition Opportunities

To present an acquisition opportunity to Corporate Office Properties Trust, please contact:

James K. Davis, Jr.
Vice President, Investments
Corporate Office Properties Trust
(443) 285-5710
jim.davis@copt.com

Acquisition History

January 2007

The acquisition of 56 operating properties containing 2,352,000 square feet and 187 acres of land at a cost of $363.9 million, including approximately $1.4 million in transaction costs, all located in Maryland. The buildings are located in the submarkets of White Marsh, Columbia, BWI, Towson and Hunt Valley.

The operating properties are approximately 85% occupied. Major tenants in the portfolio include Comcast Corporation, MedStar Health, Inc., Orbital Sciences Corporation and The Johns Hopkins University. The 187 acres of entitled land can support a minimum of 2 million square feet of office development. The total price was funded through $182.4 million in debt assumption and cash, with the seller receiving $154.9 million in the form of common shares issued at a deemed value of $49.00 per share and $26.6 million in Series K convertible preferred shares with a fixed coupon of 5.6%.

October 2006

The acquisition of approximately 500 acres of the 591 acre former Fort Ritchie United States Army base located in Cascade, Washington County, Maryland. The balance of the property is anticipated to close in the spring of 2007. The purchase price was $5.0 million, adjusted pro rata for the property holdback. The property is approximately 8 miles west of Route 15, along Route 550 which is north of Frederick, Maryland and near the Pennsylvania border.

The approximately 591 acre site contains a mix of office space, support buildings, residential units, recreational and woodland areas. COPT’s proposed development plan includes 67 acres of historic area, 24 acres of lakes, 20 acres of community use, 79 acres of business development, 135 acres of residential development and 257 acres of woodland area. The Company plans to develop 1.7 million square feet of office space on the site and 673 residential units including a mix of apartments, duplexes, condominiums, townhomes and single family units. It is anticipated that Fort Ritchie will be developed over a 10 to 15 year timeframe, with the intent of creating 4,500 jobs.

July 2006

The acquisition of a 611,379 square foot office building known as the Renaissance at Columbia Gateway for $78.0 million. The Renaissance at Columbia Gateway is located at 7125 Columbia Gateway Drive in the Columbia Gateway Business Park in Columbia, Maryland which is positioned between Baltimore and Washington, D.C., near the intersection of MD Route 175 and Interstate 95. The building is comprised of 319,330 square feet of Class A office space on three floors and 292,049 square feet of warehouse space.

The acquisition of 178 acres of land known as Clarks Hundred for $26.6 million. The parcel of land is located adjacent to one of COPT's core business parks, The National Business Park (NBP) in Annapolis Junction, Maryland. NBP is a premiere business park containing 285 acres and is bordered by the Baltimore Washington Parkway. The purchase was funded by $19.3 million in cash and the balance with the issuance of common units in our operating partnership.

May 2006

The acquisition of three Class "A" office buildings containing a total of 324,549 square feet for a purchase price of $43.6 million. The office buildings are located at 5725, 5755 and 5775 Mark Dabling Boulevard in the north Interstate 25 submarket of Colorado Springs, south of the Company's existing properties in the InterQuest Office Park.

January 2006

The acquisition of 9965 Federal Drive in Colorado Springs, a 60,000 square foot office/lab building located on an 11-acre parcel. The vacant property was formerly used as a research facility and contains a 20,000 square foot "clean" room and lab. Purchased for $2.6 million, the Company expects to invest close to another $3 million dollars to renovate and lease the building as office space. When completed and leased, the total cost is approximately $93 per square foot with replacement cost estimated at over $140 per square foot. The site can support an additional 20,000 to 30,000 square feet of office development. Located within the InterQuest Office Park along the I-25 northeast submarket of Colorado Springs, the building is adjacent to the 132-acre land parcel in which the Company purchased a 50% interest during September 2005, as well as two office buildings (InterQuest 3 and 4) purchased by the Company in December 2005.

December 2005

The acquisition of 7 buildings totaling about 705,000 square feet located in the Hunt Valley Business Community in Hunt Valley, Maryland. In addition, the Company acquired 14 office buildings totaling approximately 402,000 square feet located in the Rutherford Business Center, Woodlawn, Maryland. These 21 properties in Baltimore County were valued at $124.5 million or $112.00 per square foot. The Hunt Valley portfolio is located directly off of I-83 in Northern Baltimore County. The Woodlawn portfolio is located directly off of I-695 and is adjacent to the Social Security Administration headquarters and Centers for Medicare and Medicaid Services.

The acquisition of 9950 and 9960 Federal Drive, two single-story, Class "A" office buildings containing 113,000 square feet on a 10 acre parcel. The value of the properties is $11.4 million. The office buildings are located in the northeast submarket of Colorado Springs along I-25, within the InterQuest Office Park, and adjacent to the 132 acre land parcel that the Company purchased a 50% interest in during September 2005.

The acquisition of 7015 Albert Einstein Drive, a single-story, Class "A" office building containing 61,203 square feet for $9.2 million. The office building is located in the Columbia Gateway Business Park in Columbia, Maryland.The office building is 100% leased to Broadwing Corporation (formerly known as Corvis Corporation).

October 2005

The acquisition of 110 Thomas Johnson Drive, a four-story, Class "A" office building containing 117,803 square feet for $17.0 million. The office building is located in Frederick, Maryland close to the northwest end of the I-270 Corridor. This acquisition marks the Company's entrance into this targeted submarket. The Company acquired the building from Farmers and Mechanics Bank (F&M), a subsidiary of Mercantile Bancshares Corporation. F&M will lease back 58% of the rentable square footage of the office building for ten years. The acquisition includes 21.43 acres of land capable of supporting the development of approximately 80,000 square feet of new office space, in addition to the existing 117,803 square feet on the site.

The acquisition of three office buildings in Colorado Springs, Colorado. The first property known as Newport Centre One was acquired for $9.0 million, and is a four story Class A office building containing 67,500 square feet located at 1670 North Newport Road. The office building is located near the Colorado Springs Airport and Peterson Air Force Base, and is 100% leased to the United States Government and a defense contractor. The second acquisition consists of two office buildings known as Science Park I & II that were purchased for $18.0 million. Science Park I is a three story Class A office building containing 102,717 square feet located at 985 Space Center Drive. Science Park II is a single story office building containing 33,190 square feet located at 980 Space Center Drive. Science Park I & II are 93% leased primarily to defense contractors serving Peterson Air Force Base. These buildings are located at the northern entrance of Patriot Park. The Company acquired Patriot Park in July, and currently has a 50,000 square foot, fully leased building under construction on five acres within the park. The Company also purchased for $9.2 million a 50% undivided interest in 132 acres of land known as the InterQuest Office Park that can support approximately 935,000 square feet. The Company paid $2.5 million at closing with the balance financed through a $6.7 million seller note. The Company also assumed a $1.4 million bond obligation. The InterQuest Office Park is located along I-25 at the northern portion of the Colorado Springs market, near the entrance to the Air Force Academy. The InterQuest Office Park will primarily serve commercial tenants as well as some defense contractors and the development of new office buildings will commence depending on tenant demand.

September 2005

The acquisition of Gateway Crossing 95, consisting of six one-story office buildings containing 188,819 square feet located in the Columbia Gateway Business Park in Columbia, Maryland for $26.0 million. The office buildings are located on Columbia Gateway Drive, positioned at the mid-point of Baltimore and Washington, D.C., near the intersection of MD Route 175 and Interstate 95. 7130 Columbia Gateway Drive contains 46,840 square feet, 7134 Columbia Gateway Drive contains 21,991 square feet, 7138 Columbia Gateway Drive contains 38,225 square feet, 7142/7146 Columbia Gateway Drive contains 45,951 square feet and 7150 Columbia Gateway Drive contains 35,812 square feet.

April 2005

Acquisition of Rockville Corporate Center, containing 221,702 square feet for $43.3 million. The complex is comprised of two four-story Class "A" office buildings on 14.5 acres and a 9.7 acre parcel of land that has approvals in place to build approximately 215,000 square feet of space. The buildings are located at 15 West Gude Drive and 45 West Gude Drive in Rockville, Maryland. The transaction is a sale leaseback with Applera Corporation, and Celera Genomics, a subsidiary of Applera, will continue to occupy 100% of 45 West Gude Drive and a portion of 15 West Gude Drive after the acquisition. This acquisition represents the third acquisition in Montgomery County, Maryland, bringing the Company's portfolio in that county to 586,686 square feet.

March 2005

Acquisition of a major office complex for $30.5 million in San Antonio, Texas. The complex consists of two buildings that are connected and contain office and R&D space totaling approximately 470,000 square feet. The buildings are located at the intersection of Loop 410 and Military Drive and were acquired from Sony Electronics , Inc. This acquisition marks the initiation of the Company's expansion strategy, which is built around meeting the multi-location requirements of the Company's existing strategic tenants. The office complex is 100% leased to one of the Company's top 20 tenants.

December 2004

Acquisition of Dahlgren Technology Center within King George County in Dahlgren, Virginia, for $26.3 million. Dahlgren Technology Center is comprised of six buildings totaling 204,605 rentable square feet. This complex is located directly adjacent to the Dahlgren Naval Surface Warfare Center, and in close proximity to the Company’s St. Mary’s County, Maryland, portfolio, which is adjacent to the Patuxent Naval Air Station. Dahlgren Technology Center was 100% leased at acquisition, predominately to defense contractors including Lockheed Martin Corporation, Northrop Grumman, SAIC and BAE Systems.

November 2004

Acquisition of 11300 Exploration Drive, a 44,830 square foot building, and 44420 Pecan Court, a 25,200 square foot building, both in St. Mary’s County, Maryland.

September 2004

Acquisition of 14280 Park Meadow Drive, a four-story Class A office building containing 114,126 square feet located in Chantilly, Virginia, for $21.7 million. The building, known as Corporate Point III, was 100% leased on a multi-tenant basis at acquisition. This acquisition marked the Company’s seventh building in Westfields Corporate Center, which totals 1.1 million square feet and was 99% leased.

Acquisition of Pinnacle Towers for $112.5 million at 1751 and 1753 Pinnacle Drive in the Tysons Corner submarket of McLean, Virginia. These two Class A office buildings total 440,102 square feet and were 90% leased. The major tenant is Wachovia Bank, which leases 40% of the total square footage under a long-term lease. This acquisition increased the Company’s ownership in Northern Virginia to over 2 million square feet.

May 2004

Acquisition of 44425 Pecan Court, a 59,055 square foot office building located in St. Mary’s County, Maryland.

April 2004

Acquisition of 10150 York Road, a 178,764 square foot office building located in Hunt Valley, Maryland, for $16.5 million. This five-story building was constructed in 1985 as the headquarters for AAI Corporation and is located within two miles of the Company’s Deereco Road and Atrium buildings. The building was 77% leased to three tenants presenting a value-add opportunity for the Company.

May 2004

Acquisition of eight office/flex buildings containing 430,869 square feet and two land parcels totaling 13.7 acres in St. Mary’s County, Maryland, for $51.5 million. The buildings, located in two parks, are strategically positioned in close proximity to the Patuxent Naval Air Station. St. Mary’s County, Maryland, is located in the Greater Washington Region, southeast of Washington, D.C.  The contract included two additional buildings totaling 104,000 square feet that the Company would acquire in the next 60 days for $13.6 million pending loan assumption approval.

Acquisition of 400 Professional Drive, a 129,030 square foot building located in Gaithersburg, Maryland, for $22.4 million. This five story, multi-tenanted building located within the Crown Point Office Park, was built during 2000, and was 90% leased with no tenant rollover until 2007.

July 2003

Acquisition, for $75.2 million, of five Class A office buildings totaling 433,814 square feet, located in the Herndon and Dulles South submarkets of Northern Virginia. The buildings were 96% leased at acquisition. Two of the buildings, One and Two Dulles Technology Center, totaling 166,821 square feet, are located near the Company’s recently acquired One Dulles Tower building leased to VeriSign. Three buildings, One, Two, and Three Ridgeview at Westfields, totaling 266,993 square feet, are located adjacent to the Company’s existing properties in the Westfields Corporate Center.

June 2003

The $71.2 million acquisition of 13200 Woodland Park Drive, a 404,665 square foot Class A office building located in Herndon, Virginia. The thirteen-story building was 100% leased by VeriSign, Inc., a provider of infrastructure services for the Internet and telecommunications networks.

March 2003

The $18 million acquisition of 2500 Riva Road, a two-story, 155,000 square foot office building located in Annapolis, Maryland. The building is situated on 12 acres near the intersection of MD Route 50 and Riva Road, within the Parole area of Annapolis. The building is fully leased for fifteen years under a sale leaseback agreement with USinternetworking, Inc. USinternetworking is an Internet application service provider, and the building serves as the company's corporate headquarters and data center. The site includes land for potential development; however, there are no approvals in place and no development is contemplated at this time.

August 2002

The $48 million acquisition of 15049 and 15059 Conference Center Drive, a two-building 290,245 square foot office complex located in Chantilly, VA. The buildings, known as Greens I and II, are situated in the Route 28 corridor, within the Westfields Corporate Center, just south of Dulles International Airport. The buildings were 96% leased at acquisition, including tenants such as Aerospace Corporation, Boeing Company, Booz-Allen Hamilton and Titan Systems Corporation, with no lease rollover until 2005. The transaction included the right to purchase a six acre, fully-entitled development parcel that can support approximately 83,000 square feet of additional office space.

The $27.3 million acquisition of 11800 Tech Road, a 236,441 square foot office building located in North Silver Spring, Maryland. The property is situated near MD Route 29 and New Hampshire Avenue. The building was 95% occupied, featuring tenants such as General Services Administration – Department of Defense, Comcast Cable Communications, Inc., Kaiser Foundation Health Plan, BioCore Medical Technologies, and Holy Cross Hospital. 

June 2002

Acquisition of a 145,806 square foot Class A office building in Columbia, Maryland. The transaction totaled $16 million and was financed by a draw under the Company's line of credit. The property is located at 7000 Columbia Gateway Drive in the prestigious four million square foot Columbia Gateway Business Park, situated at I-95 and Route 175 in the heart of the B/W Corridor. The building was completed in 1999 and is 100% occupied by Honeywell International, Inc.

April 2002

The Company acquired a five-building portfolio totaling 166,625 square feet located in the B/W Corridor for $16.3 million. At acquisition, the properties were 98.3% leased. 

December 2001

Acquisition of a five-story, 470,000 square foot office building in Chantilly, Virginia, which was 100% leased to six tenants, including DynCorp, General Dynamics, Genuity and Verizon, with an average lease term of 6.5 years. The property features over 41,000 square feet of conference, dining and health club facilities. The acquisition also included a contiguous, improved 17-acre development site that can support an additional 400,000 square feet of Class A office space.

May 2001

Purchase of a three-building, 142,000 square foot office portfolio in Columbia, MD, Two of the buildings were 100% leased to companies including State Farm Mutual Automobile, General Physics Corp. and Arbitron. The Company planned to redevelop and upgrade the third building to be suitable for larger tenants. The office buildings -- 6700, 6708 and 6724 Alexander Bell Drive -- are located in Columbia Gateway, a 630-acre business park positioned at the mid-point between Baltimore, MD, and Washington, D.C.

March 2001

Purchased, through a joint venture, a five-building, 314,594 square foot office portfolio near the Baltimore-Washington International (BWI) Airport from UBS Brinson Realty Investors LLC (AETNA Life Insurance Company)  The buildings were 98% leased to companies including CIENA Corporation, Cadmus Journal Services, Inc., and the United States Government.

April 2000

Purchased a four-story, 73,500 square foot office building near the Baltimore-Washington International Airport. The property, located at 7240 Parkway Drive in Hanover, MD, is positioned on five acres, northwest of the Baltimore-Washington Parkway / Route 100 intersection in Anne Arundel County, Maryland. The building was 93% occupied, with an executed lease for the remaining space commencing in July 2000.

March 2000

Purchased 9.6 acre parcel in the Columbia Gateway Business Park. The Company intended to construct a five-story, 125,000 square foot Class A office building on the site, with delivery scheduled for Spring 2001.

December 1999

Purchased two-building, 233,623 square foot portfolio in the suburban north Baltimore office market and 103,670 mixed-use waterfront development in Baltimore City for $41 million. The two office buildings in Timonium, MD—9690 Deereco Road and 375 Padonia Road—were 95% leased, and Brown's Wharf, located in Fells Point, was 100% leased.

November 1999

Purchased two-building, 198,348, square foot portfolio near the Baltimore-Washington International Airport for $25.8 million The two buildings—1302 and 1306 Concourse Drive—were 98% leased.

August 1999

Purchased three-building, 55,726 square foot office portfolio in Harrisburg, Pennsylvania, for $6 million. The buildings were 93% leased.

July 1999

Purchased 61,330 square foot office building in Monmouth Junction, New Jersey, for $6 million. The building was 100% leased to several corporate tenants.

April 1999

Purchased two-building, 99,026 square foot office portfolio near BWI Airport in Maryland, for $9.5 million. The buildings were 100% leased to the United States Government.

Purchased eight-building, 250,413 square foot office portfolio near BWI Airport, for $25.4 million. The portfolio, known as Commons Corporate Center, was 98% leased.

February 1999

Purchased 68,000 square foot office building at Airport Square near BWI Airport for $7 million. The building was 88% leased.

December 1998

Purchased 135 National Business Parkway, an 88,000 square foot office building in the Baltimore-Washington Corridor, for $12 million. The building was 100% leased.

Purchased three-building office portfolio at Columbia Gateway Business Center, totaling 149,000 square feet, for $17 million. The portfolio was 100% leased.

November 1998

Purchased 134 National Business Parkway, a 93,000 square foot office building in the Baltimore-Washington Corridor, for $4 million, and Woodlands Two, a 106,000 square foot building in Columbia, for $3 million.

October 1998

Purchased Woodlands One, a 10,800 square foot building located in the Columbia Gateway Business Park in Columbia, MD, for $18 million. The building was 100% leased.

October 1998

Purchased Centerpoint @ 8A, a nine-building, 270,000 square foot office portfolio located in the greater Princeton, New Jersey, submarket, for $32 million. The buildings were 100% leased.

October 1998

Purchased 7200 Riverwood Drive, a 160,000 square foot office building near Columbia, MD, for $20 million. The building was 100% leased.

September 1998

Purchased 10-building, one million square foot office portfolio in Baltimore City and Anne Arundel, Howard and Prince George's Counties in merger with Constellation Real Estate, Inc. The cumulative occupancy rate was 97%. Transaction also included the purchase of two retail properties totaling 270,000 square feet of space and 96% leased. The total deal was valued at $147 million.

May 1998

Purchased two buildings totaling 265,000 square feet of space near Fairfield, New Jersey, for $29 million. The buildings were 84% leased.

April 1998

Purchased 12-building, 813,000 square foot office portfolio known as Airport Square, near BWI Airport in Maryland, for $72 million. The portfolio was 97% leased.