Hines Announces Leasing Activity at Phoenix Tower

(HOUSTON) – Hines, the property and leasing manager for Phoenix Tower in Houston, on behalf of building owner, FSP Phoenix Tower Limited Partnership (“FSPLP”), announced today the following leasing activity at the 34-story, 629,000-square-foot office tower located at 3200 Southwest Freeway:

Forethought National Life Insurance Company signed a lease for 7,110 square feet.

Elliott Hirshfeld of CB Richard Ellis, Inc. represented the firm in lease negotiations.

The Lincoln National Life Insurance Company signed a lease for 11,652 square feet.

The company was represented in lease negotiations by Jon Silberman of NAI Houston.

TranSystems Corporation signed a lease for 6,306 square feet.

The global transportation consulting services provider was represented by Elliott Hirshfeld of CB Richard Ellis, Inc.

Hines Director of Leasing Paula Bruns represented the building owner, FSPLP, in negotiations with all three tenants.

 “We welcome the opportunity to have these three prestigious tenants in the building, and are looking forward to a long-term relationship with them,” said Bruns. “Phoenix Tower is a well-located project in the Greenway area providing tenants a newly renovated, energy-efficient, amenity-rich office tower.”

Bruns also reported that 152,683 square feet of contiguous space is available in the building for a large tenant needing corporate identity.

At the direction of FSPLP, Hines has been involved in an ongoing improvement program at the building including: the installation of new spandrel glass panels to improve energy efficiency and overall appearance; renovation of building common areas; the addition of a conference facility; updated building entrances; and the addition of a Jack Nicklaus-designed putting green atop the building garage.

All of the equity interests in FSPLP are owned, directly and indirectly, by FSP Phoenix Tower Corp.

(“Phoenix Tower Corp.”), a real estate investment trust sponsored by Franklin Street Properties Corp. (“FSP”) (NYSE Amex: FSP).

Phoenix Tower Corp. is a Delaware corporation formed to purchase, own, operate, improve and reposition Phoenix Tower in the marketplace.

Phoenix Tower Corp. is a public reporting company and all of its filings with the United States Securities and Exchange Commission are available at www.sec.gov.

Phoenix Tower is not owned by FSP.

FSP and its affiliates own and operate approximately 1.5 million square feet of Class A office space in greater Houston, including The Offices at Park Ten, Energy Tower I, and Eldridge Green (CITGO’s corporate headquarters).

FSP, based in Wakefield, Massachusetts, is focused on achieving current income and long-term growth through investments in commercial properties.

FSP operates in two business segments: real estate operations and investment banking/investment services.

The majority of FSP’s property portfolio is suburban office buildings, with select investments in certain central business district properties.

FSP’s subsidiary, FSP Investments LLC (member, FINRA and SIPC), is a real estate investment banking firm and a registered broker/dealer.

FSP is a Maryland corporation that operates in a manner intended to qualify as a real estate investment trust (REIT) for federal income tax purposes.

To learn more about FSP please visit its Web site at www.franklinstreetproperties.com.

Hines is a privately owned real estate firm involved in real estate investment, development and property management worldwide. The firm’s historical and current portfolio of projects that are underway, completed, acquired and managed for third parties includes more than 1,100 properties representing approximately 454 million square feet of office, residential, mixed-use, industrial, hotel, medical and sports facilities, as well as large, master-planned communities and land developments.

With offices in 100 cities and 17 countries, and controlled assets valued at approximately $25.8 billion, Hines is one of the largest real estate organizations in the world. Visit www.hines.com for more information.