July 25, 2003

DEVELOPMENT OF URBAN RESIDENCES CONTINUES ALONG THE WOODLANDS WATERWAY®

THE WOODLANDS, TX - (July 25, 2003) - Hundreds of urban residences are now under construction along The Waterway, and developers of the projects are reporting strong sales, according to Eric Wojner, senior vice president of commercial development for The Woodlands Operating Company, L.P.
The first phase of The Waterway Lofts, a seven-story tower containing 36 residences, is scheduled for completion by the end of this year. All but two of the lofts are sold in the first phase. The two remaining lofts are priced in the mid- to high-$400's.

The second phase is now in design, and construction should begin this fall with completion planned for the fall of 2004. Developer Threshold Interests reports multiple reservations on units in the second phase. Phase two prices range from the $300's to more than $1 million.

Hahnfeld, Witmer, Davis, a Houston-based developer active in The Woodlands, is building The Remington Brownstones on a 1-9-acre site just south of The Waterway Lofts. Eighteen of the 29 units are already sold and construction is underway. The three-story "brownstone" style townhomes will feature all brick exteriors with wood windows, and are expected to range in size from 2,000 to 3,000 square feet. Prices range from the low $300's.

James Badger Interests, LLC has begun sales of 43-45 mid-rise condominiums at One Riva Row. With construction slated to begin before year-end, the developer reports reservations on 25 percent of the planned units. The project is located on a two-acre site at Six Pines Drive and Riva Row, directly across from The Cynthia Woods Mitchell Pavilion.

Construction is underway on 18 units at Waterway Village, a project of Morgan Residential, Inc. of Houston. The 30-unit project fronts on Riva Row at Timberloch Place. According to Scott Morgan, president, seven of the units are already under contract. Each home will face the street with a private garden and second story balcony off the master bedroom. Featuring open floor plans with custom finishes, the 2,472-square-foot, three-bedroom, 2 ½-bath residences will also include bonus rooms, gourmet kitchens with granite countertops and stainless steel appliances, and oak hardwood floors in living areas. Prices range from the $320's. to $330's. "The strong sales already reported on these urban residences validates the fact that people are looking for a more active, cosmopolitan lifestyle along The Waterway,"

Wojner said. "As we continue to refine plans for the entertainment and retail venues along The Waterway, we expect to see that interest level build with the announcement of each new project."

The Woodlands Waterway is a 1.25-mile long water feature, transportation corridor, and linear park that links the office buildings, shopping, dining, urban residences, and entertainment venues in The Woodlands Town Center.
The Woodlands is a 27,000-acre master-planned community located 27 miles north of downtown Houston. It is a project of The Woodlands Operating Company, L.P., a Crescent Real Estate Equities and Morgan Stanley limited partnership.

For more information, contact:
Paul Lazzaro Susan Vreeland-Wendt
281-719-6148 281-719-6174
plazzaro@thewoodlands.com