Callahan Capital Partners Completes $228 Million
Syndication of Downtown Denver Office Portfolio

Welcomes New Investment Partners, Including CPP Investment Board

CHICAGO (September 26, 2007) – Callahan Capital Partners (“CCP”), a real estate private equity firm, has completed the syndication of its partnership interests in the joint venture that owns five class A office properties totaling 2.8 million square feet and a development parcel, in downtown Denver, for gross proceeds of approximately $228 million. The proceeds of the syndication were primarily used to pay down property level debt.

Through this syndication, CCP welcomes CPP Investment Board (“CPPIB”) and a major U.S. pension fund, both of whom rank among the largest pension funds in North America, as limited partners in this venture. Morgan Stanley Real Estate, through its Morgan Stanley Real Estate Special Situations Fund III, partnered with CCP in the $770 million acquisition of this Denver office portfolio in March 2007 and continues to be a valuable member of the joint venture.

Tim Callahan, Callahan Capital Partners’ chief executive officer commented, “We are delighted to have attracted two highly respected and sophisticated institutional investors as partners in our Denver venture. We view their investment as an endorsement of our management team’s long and successful track record in owning, operating, and creating value in large office portfolios.” Mr. Callahan further noted, “We expect current market conditions to create attractive investment opportunities and look forward to leveraging new and existing relationships to capitalize on them as they arise.”

“The CCP management team’s impressive track record as real estate investors and operators fits well with the CPP Investment Board’s long-term investment strategy. We value this common approach to creating value as we continue our efforts to expand and diversify our real estate portfolio.” said Graeme Eadie, Senior Vice-President, Real Estate Investments, CPP Investment Board.

Callahan Capital Partners completed the acquisition of the Denver CBD office portfolio formerly owned by Equity Office Properties Trust on March 29, 2007 from certain subsidiaries of Blackstone Real Estate.

About the CPP Investment Board:
The CPP Investment Board invests the funds not needed by the Canada Pension Plan to pay current benefits on behalf of 16 million Canadian contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, the CPP Investment Board is investing in publicly-traded stocks, private equities, real estate, inflation-linked bonds, infrastructure and fixed income. The CPP Investment Board is accountable to Parliament and the federal and provincial finance ministers. Based in Toronto, the CPP Investment Board is governed and managed independently of the Canada Pension Plan and at arm's length from governments. At June 30, 2007, the CPP Fund totaled C$120.5 billion including $5.6 billion in real estate investments. For more information, please visit www.cppib.ca.

About Morgan Stanley Real Estate:
Morgan Stanley Real Estate is comprised of three major global businesses: Investing, Banking and Lending. Since 1991, Morgan Stanley Real Estate has acquired $135.9 billion of real estate assets worldwide and currently manages $68.0 billion in real estate assets on behalf of its clients. A complete range of market-leading investment banking services for real estate clients include advice on strategy, mergers, acquisitions and restructurings, as well as underwriting public and private debt and equity financings. As a global leader in real estate lending, Morgan Stanley has offered approximately $156.0 billion of CMBS through the capital markets since 1997, including $35.5 billion in 2006. For more information about Morgan Stanley Real Estate, please visit www.morganstanley.com/realestate.