Cali made an important strategic move into the suburban Philadelphia market in 1996. Cali established a strong presence in this top-performing, neighboring market by purchasing seven buildings in three office complexes totaling 761,000 square feet. Rose Tree Corporate Center - A two-building office complex totaling 260,000 square feet and located off Route 1, just two miles from the "Blue Route" in Media. The buildings are 98% leased to over 50 tenants. Five Sentry Parkway - A 100%-leased, two-building office complex in Plymouth Meeting, totaling 131,000 square feet. Airport Business Center - A prestigious three-building office complex totaling 371,000 square feet, located in Lester. The building is adjacent to Philadelphia International Airport and is 99% leased. This acquisition also included an option to buy 13 acres of land which can be developed into over 150,000 square feet of office space.

"Our ability to recognize and act upon positive trends in our mar- kets has positioned the Company as one of the leading office REITs in the country." John R. Cali Chief Administrative Officer and Head of Acquisitions