Arden Realty Group, Inc.
Ticker: ARI 9100 Wilshire Boulevard, East Tower, Suite 700
Exchange: New York Stock Exchange Beverly Hills, California 90212
Industry: Financial (310) 271-8600

Type of Shares:Common Shares Filing Date:7/16/96
U.S. Shares:18,847,500 Offer Date:10/3/96
Non-U.S. Shares:0 Filing Price:$20.00
Primary Shares:18,847,500 Offer Price:$20.00
Secondary Shares:0 Gross Spread:$1.30
Offering Amount: $376,950,000 Selling:$0.78
Expenses: - Reallowance:$0.10
Shares Out After:18,725,000

ManagerTierPhone
Lehman Brothers IncorporatedLead Manager (212) 640-6129
A.G. Edwards & Sons, Inc.Co-manager (314) 289-3000
Alex. Brown & Sons IncorporatedCo-manager (410) 727-1700
Dean Witter ReynoldsCo-manager (212) 392-2222
Everen Securities, Inc.Co-manager (312) 574-6000
Legg Mason Wood Walker, Inc.Co-manager (410) 539-3400
Raymond James & Associates, Inc.Co-manager (813) 573-8108
Smith Barney Inc.Co-manager (718) 921-8473

Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 3/31/96 3/31/95 3/31/96
Revenue:$28.58$15.05$5.39Assets:$380.29
Net Income:-$1.22-$1.85$0.08Liabilities:$364.51
EPS:Equity:$15.78

Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year,
unaudited figures are partial year

Business Description
The company has been formed to continue and expand the real estate business of Arden Realty Group, Inc., a California corporation, and certain affiliated entities which are engaged in owning, acquiring, managing, leasing and renovating office properties. The company's founders, Richard S. Ziman and Victor J. Coleman, along with the other five senior officers at the company, have an average of more than 18 years of experience in the Southern California real estate industry. Upon completion of this Offering, the company will own 24 office properties containing approximately 4.0 million rentable square feet. All of the Properties are located in Southern California, with 21 in suburban Los Angeles County, two in Orange County and one in San Diego County. As or April 30, 1996, the Properties had a weighted average occupancy rate of approximately 88%. The company currently manages 22 of the Properties. Upon completion of the Offering, the company will manage all of the Properties and four additional properties containing approximately 325,000 rentable square feet which are currently by the company for institutional investors and other third-party owners. The company will be a fully integrated, self-administered and self-managed real estate company and expects to quality as a REIT for federal income tax purposes.

Use of Proceeds
The proceeds from the proposed offering will be used for payments to certain participants for their interests in the Arden predecessors and in certain of the properties, repayment of mortgage debt on the properties, repayment of mortgage debt on the properties, including accrued and additional interest on such mortgage debt, purchase of the acquisition properties, tenant improvements and capital expenditure reserves, and for working capital.

Last updated: 10/28/96

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