Avalon Properties, Inc.

Avalon Properties Inc is a self-administered and self-managed real estate investment trust. The company is involved principally in the development, construction, acquisition and operation of residential apartment communities in the Northeast and Mid-Atlantic regions of the United States. It also provides management services for communities owned by unrelated parties. The company was formed to continue the operations and acquire the real estate assets of the Trammell Crow Residential Mid-Atlantic Group. Rental income accounted for 99% of 1997 revenues and managment fees and other income, 1%.