INSIGNIA/ESG HOTEL PARTNERS ARRANGES SALE OF DISTRICT HOTEL

Washington, DC ¡V July 6, 2001 ¡V Insignia/ESG Hotel Partners is pleased to announce the sale of the Residence Inn by Marriottƒ{Washington, DC Thomas Circle at 1199 Vermont Avenue, NW. Vermont Company, LLC sold the 202-suite, extended-stay hotel to JWM Family Enterprises. Marc Magazine and Peter Greene of Insignia/ESG Hotel Partners represented the seller, Vermont Company, LLC in the transaction.

The property was under contract to another purchaser and scheduled to close in March. The purchaser changed its mind at settlement and forfeited its deposit. Insignia/ESG Hotel Partners moved quickly with a backup contract ready for the seller to negotiate and close at the desired sale price. ¡§This is credited to the thoroughness of Insignia/ESG Hotel Partners¡¦ marketing approach,¡¨ stated Marc Magazine, who was brought on locally to spearhead Insignia/ESG Hotel Partners¡¦ presence in the Washington Metropolitan area. ¡§With the seller in New England and the buyer being represented out of California, the phones and emails were fast and furious, but we were able to get the sale completed in the time frame we promised,¡¨ added Peter Greene, who works out of the Insignia/ESG Hotel Partners¡¦ Chicago office.

The Residence Inn was constructed in 1999. The original office building at 1199 Vermont Avenue, NW was purchased by the Vermont Company and transformed into a 12-floor, 202-suite, extended-stay hotel. The property ¡V three blocks from the McPherson Square Metro stop and surrounded by Washington¡¦s numerous attractions and landmarks ƒ{ has three function rooms for hosting meetings or events.

Insignia/ESG Hotel Partners is a leading full-service real estate group focused exclusively on the hospitality industry, with brokerage, financing and advisory operations worldwide. Insignia/ESG Hotel Partners¡¦ professionals handle the full spectrum of hospitality real estate, from high-profile hotels, resorts and chains to limited-service and extended-stay hotels. The company serves the capital needs of more hotel properties annually than any other brokerage firm. Insignia/ESG Hotel Partners operates out of offices in Atlanta, Boston, Chicago, Dallas, Kansas City, London, Los Angeles, Miami, New York, Phoenix, San Francisco, Tampa and Washington, DC.

Insignia/ESG Hotel Partners is part of Insignia/ESG Capital Advisors Group, which focuses on investment sales and debt financing for major properties of all types. Insignia/ESG is a subsidiary of Insignia Financial Group, Inc., a publicly traded real estate company listed on the New York Stock Exchange under the symbol IFS.