Brookfield Office Properties Sells Properties in Minneapolis, Houston

Brookfield OfficeProperties Inc. (NYSE: BPO) announced today the sale oftwo assets: the 33 South 6th Street / City Center property inMinneapolis and the KBR Tower office building in Houston, in whichBrookfield sold its 50% interest along with joint venture partnerKBR. Brookfield sold the 33 South 6th Street / Minneapolis City Centerproperty in Minneapolis to Shorenstein Properties LLC on behalf ofits tenth investment fund, Shorenstein Realty Investors Ten, L.P. for$205.5 million gross. Net proceeds to Brookfield were approximately$106 million. The 50-story property contains 1.1 million square feet of officespace, 370,000 square feet of retail space and 687 parking stalls.Target Corp. is the anchor tenant, renting 72% of office space undera lease that expires in December 2023. Overall, the property is 95%leased.Brookfield, along with joint venture partner KBR Inc., sold the KBRTower office building and adjacent garage in Houston to CorporateProperty Associates 17-Global, a public non-traded REIT affiliate ofW. P. Carey Inc. (NYSE: WPC) for $174.6 million gross. Brookfield'sU.S. Office Fund (in which Brookfield owns an 84% interest) had owneda 50% interest in the building through a joint venture with KBR. Netproceeds to Brookfield were approximately $76 million. KBR Tower, located at 601 Jefferson St. in downtown Houston, contains1.05 million square feet of headquarter office and retail space, withan adjacent 1,500-space garage. Brookfield acquired its stake in the40-story tower as part of the Trizec portfolio in 2006.