SF New Developments

DENVER, Sept. 5 /PRNewswire-FirstCall/ — Archstone-Smith ASN, one of the nation’s largest apartment companies, today announced the acquisition St. Francis Place, a 410-unit high-rise community in downtown San Francisco. Representing a purchase price of $170.0 million, the acquisition was funded primarily through tax-deferred exchange proceeds from dispositions of apartment communities that no longer meet the company’s long-term investment criteria and $53 million of operating partnership units.

“Our strategy is to own apartments in the most desirable neighborhoods in the country, where housing is exceptionally expensive, and St. Francis Place is a perfect fit with that strategy,” said R. Scot Sellers, chairman and chief executive officer. “St. Francis Place affords residents the chance to enjoy the many cultural and recreational opportunities that living in this great city has to offer, while providing convenient access to more than a million jobs in the financial services, telecommunications and technology sectors.”

St. Francis Place is located at the corner of Third Street and Folsom Street, just four blocks South of Market Street in the heart of downtown San Francisco’s central business district. The community is a short walk from the Montgomery Street BART station and close to U.S. Interstate 80 and U.S. Highway 101, providing quick access to the rest of San Francisco and the East Bay. The world famous Union Square shopping district is located five blocks from the community, offering a multitude of restaurants, art galleries, upscale boutiques and department stores.

St. Francis Place features more than 25,000 square feet of on-site, ground floor retail space occupied by a variety of businesses, including two upscale restaurants, a full-service salon and day spa. The property’s one-, two-, and three-bedroom apartments feature generous floor plans, patios/balconies, and ten foot ceilings and washers/dryers in select units. Residents also enjoy an on-site fitness center, business center with conference room, clubhouse, pool/spa and a 425-space on-site parking garage. The community will operate under the company’s Archstone brand.

Archstone-Smith ASN, an S&P 500 company, is a recognized leader in apartment investment and operations. With a current total market capitalization of $19.2 billion, the company’s portfolio is concentrated in many of the most desirable neighborhoods in the Washington, D.C. metropolitan area, Southern California, the San Francisco Bay Area, the New York City metropolitan area, Boston, Chicago, Southeast Florida and Seattle. The company continually upgrades the quality of its portfolio through the selective sale of assets, using proceeds to fund investments in assets with even better growth prospects. Through its two brands, Archstone and Charles E. Smith, Archstone-Smith strives to provide great apartments and great service to its customers - backed by unconditional service guarantees. As of June 30, 2006, Archstone-Smith owned or had an ownership position in 267 communities, representing 82,491 units, including units under construction.

Archstone-Smith’s archived press releases are available on its web site at http://www.ArchstoneSmith.com or may be obtained by calling (800) 982-9293.

In addition to historical information, this press release contains forward-looking statements and information under the federal securities law. These statements are based on current expectations, estimates and projections about the industry and markets in which Archstone-Smith operates, management’s beliefs and assumptions made by management. While Archstone-Smith management believes the assumptions underlying its forward-looking statements and information are reasonable, such information is necessarily subject to uncertainties and may involve certain risks, many of which are difficult to predict and are beyond management’s control. As such, these statements and information are not guarantees of future performance, and actual operating results may differ materially from what is expressed or forecasted in this press release and supplemental information. See “Risk Factors” in Archstone- Smith’s 2005 Annual Report on Form 10-K for factors that could affect Archstone-Smith’s future financial performance.

Contact:  H. Andrew Cantor               800-982-9293 / 303-708-5959