<PAGE>
                                                                  Exhibit 10.112


                         COMMERCIAL MANAGEMENT AGREEMENT

            THIS COMMERCIAL MANAGEMENT AGREEMENT ("Agreement") is made and
entered into as of the 15th day of July, 1987, by and between AVENUE ASSOCIATES
LIMITED PARTNERSHIP, a District of Columbia limited partnership ("Owner"), and
CROW-WASHINGTON OFFICE MANAGEMENT COMPANY, INC., a Texas corporation
("Manager").

                              W I T N E S S E T H :

            WHEREAS, Owner is the owner of a parcel of land located on
Pennsylvania Avenue, N.W., Washington, D.C. between 7th, 9th and D Streets, N.W.
("Property") and proposes to construct thereon two (2) multi-use structures
including retail, residential and commercial space and a parking garage(s)
("Buildings") (the Property and the Buildings being collectively referred to as
the "Premises"); and

            WHEREAS, Owner has agreed to appoint Manager as the sole and
exclusive managing agent for the commercial (which term includes all
non-residential) space in the Buildings and Manager has agreed to serve as such,
all subject to the terms and conditions hereinafter set forth.

            NOW, THEREFORE, in consideration of the foregoing, One Dollar
($1.00), the terms set forth below, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, Manager and Owner
hereby agree as follows:

                                    ARTICLE I

                   ESTABLISHMENT OF MANAGERIAL RESPONSIBILITY

            Section 1.1 Appointment of Manager. Owner hereby appoints Manager,
and Manager hereby accepts appointment, on the terms and conditions hereinafter
provided, as sole and exclusive Manager of the commercial portion of the
Premises.

                                   ARTICLE II

                       SERVICES TO BE PERFORMED BY MANAGER

            Section 2.1 Preparation of Annual Budget. (a) Within ninety (90)
days after the certificate of occupancy permitting occupancy of the commercial
portion of either of the

<PAGE>

Buildings is obtained and on or before every August 1 during the term hereof,
Manager shall prepare and deliver to Owner an operating and capital budget in
form satisfactory to Owner in preliminary draft form setting forth an itemized
statement of the estimated receipts and disbursements (capital, operating and
other) for the next fiscal year. Such preliminary budget shall include a rent
roll for the commercial portion of the Buildings, taking into account, without
limitation, the general condition of the commercial portion of the Premises,
rate of completion of any contemplated repairs to the commercial portion of the
Premises, the then current occupancy level, lease expirations, the physical
condition of the commercial portion of the Buildings and rentals charged in the
competing office and retail buildings in the area. Each such preliminary budget
shall also include suggested leasing guidelines (including rental rates, terms,
parameters for tenant creditworthiness, escalation clauses, remodeling and
parking charges, and other pertinent matters) to serve as a basis for
negotiating with prospective or renewal commercial tenants, a schedule of
proposed job descriptions and requirements for any and all independent
contractors and employees of Manager serving the commercial portion of the
Premises, a reasonable estimate of wage rates and all other compensation to be
paid such contractors and employees.

            (b) After review and approval by Owner in accordance with Section
2.05 of the Joint Venture Agreement of Market Square Associates ("Joint Venture
Agreement"), Manager shall refine each such preliminary budget into final draft
form not later than thirty (30) days after delivery of such preliminary budget;
following its approval in final form by Owner, said budget (hereinafter called
an "Annual Budget") shall constitute a standard to which Manager shall adhere.
Notwithstanding the foregoing, sums shown in the Annual Budget for tenant
improvement work are for illustrative purposes only and no sums for tenant
improvement work will be spent except on a lease-by-lease basis as approved by
Owner. Except with the prior consent, which will not be unreasonably withheld or
delayed, of Owner or in the case of emergency repairs permitted under Section
2.4 hereof, no expense or cost may be incurred or commitment made by Manager in
connection with the maintenance, repair or operation of the commercial portion
of the Premises in excess of ten percent (10%) of each base item and in the
aggregate five percent (5%) over the Annual Budget for operating expenses
("Excess Payment"); no overspending of the individual items or the aggregate
amount of the Annual Budget for capital expenses is permitted by this Section.
The making of any Excess Payment by Manager shall not be a default under this
Agreement; provided, however, the Amount of such Excess Payment shall be an
obligation of Manager and shall not be paid from funds of Owner and Owner shall
be under no obligation to reimburse Manager for such expenditures unless such
Excess Payment is subsequently approved by Owner in its reasonable discretion.

            Section 2.2 Independent Contractors. Pursuant to the Annual Budget,
Manager shall investigate, contract with, pay, supervise and discharge any
personnel required for the routine maintenance and operation of the commercial
portion of the Premises on a day-to-day basis, including architects, engineers,
accountants, attorneys and others. Such personnel shall in every instance be
independent contractors or employees of Manager and shall not be employees


                                       2
<PAGE>

of Owner. After any party has been engaged to perform personal or professional
services for Owner, Manager shall give Owner notice thereof and Owner may
require Manager to terminate the contracts of such persons serving the Premises
whom Owner, in its sole discretion, deems unsatisfactory. Except as provided in
Section 5.3 below, all salaries, wages and other compensation of personnel
contracted with by Manager hereunder shall be paid by Manager from funds of
Owner or reimbursed to Manager by Owner pursuant to the terms hereof.

            Section 2.3 Service Contracts. Manager shall make, when necessary,
in the name of Owner, contracts for water, electricity, gas, fuel, oil,
telephone, vermin extermination, trash removal, janitorial service, landscaping,
security service and other necessary services, or such of them as Manager shall
deem reasonably advisable, for the commercial portion of the Premises, provided
each such contract shall be for no longer than a one-year term or shall be
cancellable on no more than thirty (30) days notice after one year without
penalty. Manager shall also place orders in the name of Owner for such
equipment, tools, appliances, materials and supplies as are necessary properly
to maintain the commercial portion of the Premises, subject to the limitations
of the current Annual Budget (as it is subject to the provisions of Section
2.1(b) above) approved by Owner.

            Section 2.4 Maintenance and Repair of Premises. Manager shall cause
the commercial portion of the Premises to be maintained in accordance with the
standards not less than those set forth in Section 2.9(h) below, including
(without limitation) the performance of ordinary alterations and improvements,
supervision of the installation and removal of tenant improvements, interior and
exterior cleaning, painting and decorating, plumbing, carpentry, and such other
normal maintenance and repair work as may be desirable, subject to limitations
of the current Annual Budget approved by Owner and any other reasonable
limitations imposed in writing by Owner in addition to those contained herein.
For any one item of repair or replacement, the expense or cost incurred shall
not exceed the amount allocated thereto in the current Annual Budget, except as
permitted by Section 2.1(b) above and further except that emergency repairs
immediately necessary to secure the preservation and safety of the Premises or
to avoid the suspension of any service reasonably necessary for the operation of
the Premises or to avoid danger to life or property may be made by Manager
without such consent or authority contained in the current Annual Budget
provided Manager shall first make reasonable attempts to contact Owner.
Notwithstanding such authority as to emergency repairs, it is understood and
agreed that Manager will confer as soon as possible with Owner regarding every
such expenditure. Manager shall assure that any contractor performing work on
the commercial portion of the Premises maintains insurance satisfactory to Owner
and any mortgagee of the commercial portion of the Premises, including (but not
limited to) workmen's compensation insurance, employers' liability insurance and
insurance against liability for injury to persons and property arising out of
all of contractors' operations, any subcontractors' operations, and the use of
owned, non-owned or hired equipment, including automotive equipment in the
pursuit of all such operations.


                                       3
<PAGE>

            Section 2.5 Insurance. If requested by Owner, Manager shall
supervise the maintenance of insurance for the Premises, with companies and
through brokers agreed upon by Owner, of such kind and amounts as Owner shall
from time to time be required to carry pursuant to the provisions of applicable
agreements with third parties, and of such other kind and amounts as Owner shall
from time to time require.

            Section 2.6 Collection of Moneys. Manager shall prepare and deliver
all rent bills and other invoices to commercial tenants and shall calculate all
rent escalations and percentage rents due. Manager shall collect all rent and
other charges due from tenants, licensees, concessionaires and any others in
consequence of the authorized operation of facilities in the Premises and
otherwise due Owner with respect to the commercial portion of the Premises.
Owner authorizes Manager to request, demand, collect, receive and receipt for
all such rent and other charges. With the prior written consent of Owner,
Manager may institute legal proceedings and engage legal counsel in the name of
Owner for the collection of overdue rents and other charges and for the
dispossession of tenants and other persons from the commercial portion of the
Premises. Owner will be informed as soon as possible respecting any legal action
which may be contemplated. Any expense incurred in connection therewith shall be
paid by Owner. All moneys collected by Manager shall be forthwith deposited in
the Depository Account (defined in Section 5.2 below).

            Section 2.7 Manager Disbursements. Except as otherwise directed by
Owner and subject to the limitations of Section 2.1(b), Manager shall, from the
funds on deposit in the Operating Account (defined in Section 5.2 below), cause
to be disbursed regularly and punctually amounts due and payable as operating
expenses of the commercial portion of the Premises authorized to be incurred
under the terms of this Agreement, including (without limitation) payment of
utility bills, telephone bills, custodial bills, trash removal bills, water and
sewer rents, vault charges and leasing commissions, payment (if directed by
Owner) prior to delinquency and prior to the addition thereof of interest or
penalties of all real property taxes and assessments and other taxes levied or
assessed against the commercial portion of the Premises, all rents, insurance
premiums and other impositions applicable to the commercial portion of the
Premises, Manager's fees provided for in Article IV, any reimbursement due to
Manager pursuant to Section 5.3, and if requested by Owner, payment of sums due
on any mortgage loan affecting the commercial portion of the Premises. Manager
may also pay sums due on such mortgage loans if permitted by the terms of the
Joint Venture Agreement. After disbursement as herein specified, any balance
remaining shall be disbursed or transferred as generally or specifically
directed from time to time by Owner. Manager shall have no obligation to pay any
of the aforementioned expenses or costs unless there are sufficient funds in the
Operating Account or the funds are supplied to Manager by Owner. In the event
that at any time there are insufficient funds on hand to meet such operating
expenses, Manager shall promptly notify Owner, which shall supply such funds,
and if Manager shall have advanced its own funds to meet such expenses Owner
shall promptly reimburse Manager therefor. All checks to Manager for
reimbursement of expenses and for Manager's fees and all checks for payment of
leasing commissions shall be cosigned by Owner.


                                       4
<PAGE>

            Section 2.8 Discounts. Manager shall at all times be under a duty to
use its best efforts to secure for and credit to Owner any discounts,
commissions or rebates obtainable as a result of any purchase of goods or
services or as a result of other activities undertaken pursuant to this
Agreement unless otherwise directed by Owner.

            Section 2.9 Miscellaneous Duties of Manager.

            (a) Books and Records and Monthly Reports. Manager shall keep all
books of account and other records required by Owner, keep vouchers, statements,
receipted bills and invoices and all other records in such form as may be
required by Owner, covering all collection, disbursements, and other data in
connection with the commercial portion of the Premises; permit Owner, or any
person designated by any general partner in Owner, at any reasonable time, to
audit the books, records and accounts of Manager relating to the commercial
portion of the Premises, and Manager will exhibit such books, records and
accounts to any person designated by any general partner in owner for that
purpose, which accounts and records relating to the commercial portion of the
Premises, including all correspondence and leases, shall be the property of
Owner and, upon any termination of the appointment of Manager, shall be
surrendered to Owner without charge therefor within ten (10) days after such
termination date. As soon as reasonably practicable, and in any event on or
before the 15th day of each month during the term of this Agreement, Manager
shall render to Owner a detailed written report (hereinafter called the "Monthly
Report") covering the operations for the preceding full calendar month. The
Monthly Reports shall include designation of all receipts and disbursements
during such period (and shall set forth an accurate list of accounts receivable
and accounts payable) and moneys retained in the Operating Account as of the
last day of the preceding calendar month. Such report shall include a copy or
facsimile of all notices received from any mortgagee or land lessor with respect
to payments made to such mortgagee or land lessor in such preceding calendar
month, a brief narrative summary highlighting the past month's operation, a
statement setting forth the variances between actual operating results and the
budgeted results, and a detailed rent roll (the form of which shall be supplied
to Manager by Owner).

            (b) Annual Report. Within sixty (60) days after the end of each
fiscal year, Manager shall deliver to Owner a preliminary and unaudited profit
and loss statement, balance sheet, and statement of change in financial position
of Owner. Within one hundred twenty (120) days after the end of each fiscal
year, Manager shall deliver to Owner an audited profit and loss statement, a
balance sheet and a statement of change in financial position of Owner, showing
the results of operations of the commercial portion of the Premises for that
fiscal year, all prepared in accordance with generally accepted accrual basis
accounting principles consistently applied. The audit shall be performed by
Seidman & Seidman or another firm of independent accountants as Owner may
designate. The fees and charges of all accountants shall be an expense of Owner.
Manager shall also furnish Owner, within said one hundred twenty-day period,
with a detailed list of all accounts receivable and accounts payable as of the
end of that fiscal year and with such other information as Owner shall
reasonably request. In addition, within thirty (30) days after


                                       5
<PAGE>

the end of each of the first three (3) quarters of the fiscal year, Manager
shall deliver an unaudited financial statement for the preceding quarter
consisting of a balance sheet and a statement of profit and loss.

            (c) Tenant Complaints. Manager shall serve as liaison between Owner
and commercial tenants and maintain business-like relations with commercial
tenants, whose service requests shall be received, logged and considered in
systematic fashion (in accordance with standards used by the managers of
first-class office-retail projects in Washington, D.C.) in order to show the
action taken with respect to each. Complaints of a serious nature (i.e.
involving claims in excess of $1,000) shall, after thorough investigation, be
reported to Owner with appropriate recommendations. Notwithstanding anything to
the contrary set forth in this Agreement, Owner reserves the right to contact
its tenants directly, but Owner agrees to exercise this right in such manner so
as not to interfere with Manager's performance under this Agreement and to make
all such contacts as provided in the Joint Venture Agreement.

            (d) Returns Required by Law. Except when same are legally required
to be filed by Owner, Manager shall execute and file punctually, when due, all
forms, reports, and returns required by law relating to the employment of
personnel and the operation of the commercial portion of the Premises, including
all property, franchise and other tax returns. If directed in writing by Owner,
all of such tax returns shall be reviewed by Seidman & Seidman or such other
firm of independent accountants as shall be designated by Owner. Returns shall
be furnished to Owner in sufficient time that they may be reviewed by Owner and
filed without the necessity for extensions of time for filing.

            (e) Compliance with Legal Requirements. Manager shall take such
action as may be necessary to comply with any and all orders or requirements
affecting the commercial portion of the Premises by any federal, state, county,
municipal or other authority having jurisdiction thereover, and orders of the
board of fire underwriters or other similar bodies, subject to the same
limitations contained in Section 2.4 hereof in connection with the making of
repairs and alterations. Manager, however, shall not take any such action as
long as: (i) Owner is contesting any such order or requirement, (ii) Owner
requests Manager not to take such action, and (iii) Owner indemnifies Manager
from and against any civil liability incurred by Manager in failing to take such
action; provided, however, that if failure to comply with any such order or
requirement would or might expose Manager to criminal liability, Manager shall,
without approval of Owner, cause the same to be complied with. Manager shall
promptly, and in no event later than the close of the next business day
following its receipt, give written notice to Owner of any such order or notice
of requirements.

            (f) Claims for Tax Abatements and Eminent Domain Awards. When
requested by Owner from time to time, Manager shall, without charge or
reimbursement, except for out-of-pocket expenses (including attorneys' fees),
render advice and assistance to Owner in the negotiation and prosecution of all
claims for the abatement of property and other taxes


                                       6
<PAGE>

affecting the commercial portion of the Premises and for awards for taking by
eminent domain affecting the commercial portion of the Premises.

            (g) Supervision of Repairs and Alterations. Manager shall supervise
the performance of all matters coming within the terms of this Agreement,
including direct observation, inspection and supervision of all repairs,
decorations, alterations and improvements during the progress thereof and shall
make final inspection of the completed work and approve bills for payment.
Manager shall obtain the necessary receipts, releases, waivers, discharges and
assurances to keep the commercial portion of the Premises free from mechanics'
and materialmen's liens and other claims.

            (h) Management of Premises. Manager shall, generally, take all
actions reasonably necessary to protect and preserve the commercial portion of
the Premises and to manage and operate the commercial portion of the Premises in
an efficient first-class manner consistent with similar buildings in the
downtown Washington, D.C. market to maximize net operating income and shall, at
all times, maintain an organization sufficient to enable it to perform all of
its obligations and functions under this Agreement.

            (i) Tenant Improvements. Manager shall supervise tenant finishing
work and alterations when new tenants take occupancy in the commercial portion
of the Building and shall supervise and inspect modifications and alterations to
existing tenant space when requested for and paid for by existing tenant.
Manager shall contract for tenant finishing work required under leases executed
by Owner after the Conversion Date as defined in Section 2.1 of the Building
Loan Agreement. Any sums payable by tenants to Manager for supervision of such
work shall be in addition to, and not in lieu of, the fees otherwise due to
Manager under this Agreement; provided, however, that the payment of such a fee
by a tenant to Manager may not be subsidized by another lease concession granted
by Owner to the tenant if the effect of such concession would be to otherwise
reduce Manager's fees hereunder.

                                   ARTICLE III

                                      TERM

            Section 3.1 Term. The term of this Agreement shall commence on the
execution of this Agreement (the "Commencement Date"), and shall expire on the
fifteenth (15th) anniversary of the date the first certificate of occupancy
permitting occupancy of the Buildings first is issued, unless this Agreement is
sooner terminated pursuant to Section 3.2 hereof. Notwithstanding the foregoing
sentence, Manager acknowledges that the term of this Agreement may be limited by
law upon the conversion of all or a portion of the Buildings to condominium or
cooperative status and that, in such event, the term of this Agreement (or, if
permitted by applicable law, only the term of this Agreement as it pertains to
the converted portion of the Buildings) shall automatically expire on the latest
date permitted by applicable law at such time (but subject to the expiration
date set forth in the first sentence of this Section). In


                                       7
<PAGE>

the event it is necessary or advisable for Owner (as declarant of the
condominium or cooperative regime or as the controlling unit owner therein) to
terminate this Agreement upon or following the creation of such a regime and in
connection with such creation, Owner shall immediately enter into a new
management agreement with Manager if so permitted by applicable law and as
identical as is possible to this Agreement for the maximum term permissible (but
subject to the expiration date set forth in the first sentence of this Section).
Within ten (10) days after the expiration or earlier termination of this
Agreement, Manager shall deliver to Owner all books, records and materials
relating to the commercial portion of the Premises.

            Section 3.2 Termination for Cause. During the term of this
Agreement, this Agreement may be terminated by Owner for cause, as "cause" is
hereafter defined. In the event that Owner believes there is cause for the
termination of this Agreement, Owner shall deliver written notice to Manager
specifying which of the items enumerated below constitutes cause for the
termination of this Agreement. This Agreement shall terminate thirty (30) days
after delivery of such written notice to Manager if Manager fails to cure the
item specified within such period, except that such thirty (30) day period shall
be extended if a cure is not possible within such period but is possible within
a reasonable period and Manager commences such cure and thereafter prosecutes it
diligently to completion. "Cause" for termination by Owner shall include the
continuation of any of the following beyond the aforesaid grace period:

            (a) Default shall be made in the performance or observance by
Manager of any covenant, condition or term in this Agreement;

            (b) Manager shall fail to exercise the level of managerial skill,
knowledge and judgment required for the operation of a major, first-class office
and (to the extent applicable) retail building;

            (c) Manager shall engage in conduct constituting fraud, breach of
its fiduciary obligations, or misappropriation of funds;

            (d) Manager shall institute proceedings to be adjudicated a
voluntary bankrupt, or shall consent to the filing of a bankruptcy proceeding
against it, or shall file a petition or answer or consent seeking
reorganization, re-adjustment, arrangement, composition or similar relief under
the federal bankruptcy laws, or any other similar applicable federal or state
law, or shall consent to or fail reasonably to oppose any such proceeding, or
shall consent to the appointment of a receiver or liquidator or trustee or
assignee in bankruptcy or insolvency of it or of a substantial part of its
property, or shall make an assignment for the benefit of creditors, or shall
admit in writing its inability to pay its debts generally as they become due, or
corporate action shall be taken by Manager in furtherance of any of the
aforesaid purposes;

            (e) A decree or order by a court of competent jurisdiction shall
have been entered adjudging Manager bankrupt or insolvent, or approving as
properly filed a petition seeking reorganization, readjustment, arrangement,
composition or similar relief for Manager


                                       8
<PAGE>

under the federal bankruptcy laws, or any other similar applicable federal or
state law, and such decree or order shall have continued undischarged or
unstayed for a period of ninety (90) days; or a decree or order of a court
having jurisdiction for the appointment of a receiver or liquidator or trustee
or assignee in bankruptcy or insolvency of Manager or a substantial part of its
property, or the winding up or liquidation of its affairs, shall have been
entered, and such decree or order shall have remained in force, undischarged and
unstayed for a period of ninety (90) days;

            (f) Developer shall become a Defaulting Venturer (as defined in the
Joint Venture Agreement) and shall remain a Defaulting Venturer beyond the
expiration of any applicable grace period;

            (g) Subject to the provisions of Section 3.1 and if the third-party
elects to terminate this Agreement, Owner shall sell the Premises to a
third-party which is not an "Affiliate" (as defined in the Joint Venture
Agreement) of Owner and any of its partners in an arm's-length transaction;

            (h) Crow-Pennsylvania Avenue Limited Partnership ("Crow-PA") is a
joint venturer in Market Square Associates, Market Square Associates is the sole
(or managing) general partner of Owner, and (i) Owner is in default (beyond the
expiration of any applicable notice and/or grace period) under the terms of the
loan documents of even date herewith between Owner and DIHC Finance Corporation
for any reason which is the fault of Crow-PA (as opposed to being the fault of
DIHC Market Square, Inc.) or (ii) there is a default (beyond the expiration of
any applicable notice and/or grace period) under the terms of that certain
Guaranty of completion, of even date herewith, for the benefit of DIHC Finance
Corporation, DIHC Market Square, Inc., and Market Square Associates;

            (i) The indirect interest of Crow-PA in Owner shall be less than
five percent (5%). For example (and not by limitation), if the direct interest
of Crow-PA in Market Square Associates is 7.14%, and the direct interest of
Market Square Associates in Owner is 70%, then said indirect interest shall be
deemed to be 5% and any further dilution of Crow-PA's interest in Market Square
Associates shall result in a lesser indirect interest in Owner.

            Notwithstanding anything to the contrary set forth in the preamble
of this Section 3.2, no cure period shall be afforded for defaults under Section
3.2(c) (except for breach of fiduciary duty not constituting fraud or
misappropriation of funds) and the only cure period for defaults under Section
3.2(e) shall be the period specified therein.

            In the event of any dispute between the partners in the general
partner in Owner or between DIHC Market Square, Inc. and Manager as to whether
or not Owner has "cause" to terminate this Agreement pursuant to the provisions
of this Section 3.2, such dispute shall be determined by arbitration pursuant to
Article VI hereof.


                                       9
<PAGE>

            Section 3.3 Payment to Manager in Event of Termination. In the event
this Agreement is terminated under Section 3.2 hereof, Manager shall be entitled
only to that portion of the management fee earned pursuant to Article IV of this
Agreement through the date of such termination, in full satisfaction of Owner's
obligation to Manager under this Agreement.

                                   ARTICLE IV

                                  COMPENSATION

            Section 4.1 Management Fee. (a) During the term of this Agreement,
Owner shall pay Manager monthly in arrears on the last day of each month a
commercial management fee equal to three percent (3%) of the "gross rental
receipts" (as hereinafter defined) actually received by Owner, or by Manager on
behalf of Owner, each month from the commercial operations of the Building. Upon
receipt of the fee, Manager shall promptly pay DIHC Management Corporation
16.67% of such amount as a consulting fee. The term "gross rental receipts" as
used herein shall mean the gross amount of payments to Owner made as rent, fees,
charges or otherwise for the use or occupancy of the commercial, but not the
residential, portions of the Buildings, or any portion thereof, but gross rental
receipts shall not include (i) free rent concessions granted by Owner to
commercial tenants, (ii) bills rendered to commercial tenants for improvements
to the commercial tenant space in the Buildings, (iii) parking revenue except to
the extent such parking revenue exceeds actual applicable expenses relating
thereto (but shall include rent paid by any operator of the garage(s)), (iv)
insurance loss proceeds with respect to the commercial portion of the Buildings
(other than from rent or business interruption insurance), or any award or
payment made by any governmental authority with respect to the commercial
portion of the Buildings in connection with the exercise of any right of eminent
domain, (v) proceeds from the sale, exchange, mortgaging or refinancing of the
commercial portion of the Property, (vi) security deposits delivered by
commercial tenants to Owner prior to the forfeiture of such deposits, (vii) the
overtime utility charges which Owner charges its tenants, or (viii) debt service
payments made by tenants to Owner on loans.

            (b) The fee set forth in Section 4.1(a) shall be unchanged for the
first twelve and one-half (12-1/2) years of the term hereof. In the event
Manager desires to increase said fee at that time, Manager shall give Owner
thirty (30) days notice of the increase requested and evidence of the then
current market rates justifying said increase. In the event Owner denies or
fails to approve the requested increase within the thirty (30) day period, then
the increase shall be deemed denied and Manager may resign as managing agent at
any time. In the event Owner approves the requested increase, the increased
fee(s) shall be effective as of the date requested by Manager.


                                       10
<PAGE>

                                   ARTICLE V

                                 MISCELLANEOUS

            Section 5.1 Use and Maintenance of Premises. Manager agrees to use
best efforts not to permit the use of the commercial portion of the Premises for
any purpose which might void any policy of insurance held by Owner or Manager or
render any loss thereunder uncollectible, or which would be in violation of any
law, ordinance, bylaw or governmental or other restrictions. It shall be the
duty of Manager at all times during the term of this Agreement to operate and
maintain the commercial portion of the Premises in a first-class manner
consistent with the expressed plan of Owner and the budgetary constraints set by
Owner. Full compliance by the commercial tenants with the terms and conditions
of their respective leases shall be pursued, and to this end, Manager shall see
that all commercial tenants are informed with respect to rules, regulations and
notices contained therein. Manager shall be expected to perform such other acts
and deeds as are reasonable, necessary and proper in the discharge of its duties
under this Agreement.

            Section 5.2 Separation of Owner's Moneys. Owner shall establish and
maintain a bank account at a financial institution in the Baltimore, Maryland or
Washington, D.C. metropolitan areas of Owner's choosing for the deposit of all
revenues arising out of the commercial portion of the Premises (the "Depository
Account"). Manager shall promptly deposit all revenues, as same are collected,
in the Depository Account and only the authorized representatives of Owner shall
be able to withdraw funds from the Depository Account. Manager shall establish
and maintain an additional account at a financial institution in the Baltimore,
Maryland or Washington, D.C. metropolitan areas of Owner's choosing for the
purpose of maintaining those funds necessary to the operation of the commercial
portion of the Premises (the "Operating Account"). Owner shall from time to
time, upon the advice of Manager, deposit into the Operating Account sufficient
funds to cover the cost and expense of the maintenance and operation of the
commercial portion of the Premises. Funds may be withdrawn from the Operating
Account upon the signature of duly authorized representatives of Manager or
Owner. Manager shall not deposit in the Depository Account or Operating Account
any funds belonging to Market Square Associates or any person or entity other
than Owner and shall not commingle funds between Owner, Market Square
Associates, or any other person or entity.

            Section 5.3 Expenses of Manager. Owner shall reimburse Manager for
direct expenses of Manager incurred solely on account of the commercial portion
of the Premises for the payment of any proper obligation or necessary expense
connected with the maintenance and operation of the commercial portion of the
Premises, including the wages, salary and other compensation of any approved
full-time on-site property manager(s), all reasonable costs incurred in the
operation of a commercial management office in the Building, including office
rental, personnel positions, supplies, postage, equipment and telephone, and all
travel and entertainment costs reasonably incurred by Manager related to its
management services. As a


                                       11
<PAGE>

consultant, DIHC Management Corporation shall also be entitled to reimbursement
by Owner of its reasonable travel costs incurred in connection with the
Premises. All payments to be made by Manager hereunder shall be made by check
drawn on the Operating Account, except for petty cash items not exceeding Two
Hundred Dollars ($200.00), which may be paid from a fund to be maintained by
Manager for such purposes. Manager shall not be obligated to make any advance to
or for the account of Owner or to pay any sums except out of funds held in the
Operating Account, nor shall Manager be obligated to incur any liability or
obligation for the account of Owner without assurance that the necessary funds
for the discharge thereof will be provided. Any reimbursement to Manager
hereunder shall be in addition to, and not in lieu of, Manager's fees under
Article IV hereof.

            Section 5.4 Bond. Manager shall furnish, at the expense of Manager,
a fidelity bond with a commercial surety satisfactory to Owner, in the penal
amount and form approved by Owner, conditioned upon the faithful accounting for
funds of Owner collected or received by Manager.

            Section 5.5 Notices. All notices, demands, requests or other similar
communications required or permitted hereunder shall be deemed delivered when
received if sent by hand delivery (or overnight courier) or if deposited in the
United States certified or registered mail, return receipt requested, postage
prepaid, and addressed to the respective parties at the addresses specified
below, or at such other address as they shall each specify in a notice addressed
and mailed as hereinabove set forth:

To Owner:               c/o DIHC Market Square, Inc.
                        200 Galleria Parkway, N.W.
                        Suite 2000
                        Atlanta, Georgia  30339
                        Attn:  Mr. Charles W. Strawser, Jr.

with a copy to:         DIHC Management Corporation
                        200 Galleria Parkway, N.W.
                        Suite 2000
                        Atlanta, Georgia  30339
                        Attn: Mr. Charles W. Strawser, Jr.

To Manager:             c/o Trammell Crow Company
                        1001 30th Street, N.W.
                        Suite 500
                        Washington, D.C.  20007
                        Attn:  Mr. T. Christopher Roth


                                       12
<PAGE>

with copies to:         Mr. J. McDonald Williams
                        Trammell Crow Company
                        3500 LTV Tower
                        2001 Ross Avenue
                        Dallas, Texas  75201

and to:                 William E. Sudow, Esq.
                        Jones, Day, Reavis & Pogue
                        655 15th Street, N.W.
                        Washington, D.C.  20005

            All notices from Owner relating to an alleged default hereunder
shall contain the following language: "A default by Manager under the Agreement
would constitute an Event of Default under the Joint Venture Agreement of Market
Square Associates by Crow-Pennsylvania Avenue Limited Partnership."

            Section 5.6 Entire Agreement. This Agreement constitutes the entire
agreement between Owner and Manager relating in any manner to the subject matter
of this Agreement. No prior agreement or understanding pertaining to the same
shall be valid or of any force or effect, and the covenants and agreements
herein cannot be altered, changed or supplemented except in writing signed by
Owner and Manager.

            Section 5.7 Governing Law. This Agreement is made pursuant to, and
all of the rights and obligations of the parties hereto and all of the terms and
conditions herein shall be construed in accordance with and governed by, the
laws of the District of Columbia.

            Section 5.8 Severability. If any clause or provision of this
Agreement is illegal, invalid or unenforceable under present or future laws
effective during the term hereof, then the remainder of this Agreement shall not
be affected thereby, and in lieu of each clause a provision of this Agreement
which is illegal, invalid or unenforceable, there shall be added, as part of
this Agreement, a clause or provision as similar in terms to such illegal,
invalid or unenforceable clause or provision as may be possible and as may be
legal, valid and enforceable.

            Section 5.9 Binding Effect. This Agreement shall be binding upon and
shall inure to the benefit of the parties hereto and their respective
successors, heirs and assigns.

            Section 5.10 Assignment by Manager. The rights and obligations of
Manager hereunder shall not be assignable without the prior written consent of
Owner.

            Section 5.11 Subordination. This Agreement and all fees due from
Owner to Manager pursuant hereto shall be subject and subordinate in all
respects to (a) any mortgage or deed of trust upon the commercial portion of the
Premises or any portion thereof and (b) any


                                       13
<PAGE>

collateral assignment of rents due under the leases of space in any improvements
on the commercial portion of the Premises given to any lender to secure a loan
the proceeds of which were used, directly or indirectly, in connection with the
commercial portion of the Premises. This provision shall be self-executing but
Manager shall, upon request, execute such instruments as may reasonably be
requested by Owner or any such mortgagee or lender to evidence such
subordination.

            Section 5.12Exculpation. Anything in this Agreement to the contrary
notwithstanding, Manager accepts and agrees that each of the covenants,
undertakings and agreements herein made on the part of Owner, while in the form
purporting to be covenants, undertakings and agreements of Owner, are,
nevertheless, made and intended not as personal covenants, undertakings and
agreements by its partners or the partners therein or for the purpose of binding
its partners personally or the assets of its partners but are made and intended
for the purpose of binding only its partners' interests, or the interests of the
partners therein, in the assets of Owner and that no personal liability or
personal responsibility is assumed by, nor shall at any time be asserted or
enforceable against the partners of Owner or the partners therein or their
respective heirs, legal representatives, successors and assigns on account of
this Agreement or on account of any covenant, undertaking or agreement of Owner
and its partners in this document contained, all such personal liability and
personal responsibility, if any, being expressly waived and released by Manager,
and Manager further agrees not to seek or enforce any judgments (including but
not limited to specific performance, deficiency judgments, and any and all other
judgments) obtained against Owner or against its partners or the partners
therein beyond the interests of the partners in the assets of Owner.

            Section 5.13Indemnity. To the extent not covered by Owner's
insurance, Manager shall indemnify Owner and save it harmless from and against
all claims, losses and liabilities arising out of damage to property, or injury
to, or death of persons (including the property and persons of the parties
hereto, and their agents, subcontractors and employees) occasioned by or in
connection with the gross negligence or willful misconduct of Manager or
Manager's employees or subcontractor's and all costs, fees and reasonable
attorneys' expenses in connection therewith.

            Section 5.14Waivers. No delay or omission by either party in
exercising any right or power accruing upon the non-compliance or failure of
performance by the other party hereto of any provisions of this Agreement shall
impair any such right or power or be construed to be a waiver thereof. A waiver
by either party of any of the covenants, conditions or agreements hereof to be
performed by the other must be in writing and signed by the party who is waiving
such covenants, conditions or agreements.


                                       14
<PAGE>

                                   ARTICLE VI

                                  ARBITRATION

            Section 6.1 Whenever in this Agreement it is provided that a dispute
shall be determined by arbitration, the arbitration shall be conducted as
provided in this Article. The party desiring such arbitration shall give written
notice to that effect to the other, specifying the dispute to be arbitrated.
Within ten (10) days after said notice is given, the other party shall give
written notice to the first party, specifying the name and address of the person
it proposes to act as arbitrator. If the second party fails to notify the first
party of its choice of arbitrator as aforesaid by the time above specified, then
the first party shall select the arbitrator to determine the dispute. If the
first party does not object to the arbitrator proposed by the second party
within ten (10) days after notice is given of such nomination, the arbitrator
proposed by the second party shall determine the dispute. If the first party
rejects the proposed arbitrator during said period and if they cannot agree upon
said appointment, an arbitrator shall be appointed upon their application or
upon the application of either party by the Chief Judge of the District of
Columbia Court of Appeals. The arbitrator shall decide the dispute and tender a
written decision to the parties within thirty (30) days after his or her
appointment. A decision shall be binding and conclusive upon the parties and
judgment thereon may be entered in any court having jurisdiction thereof.

            Section 6.2 In designating an arbitrator and in deciding the
dispute, the arbitrator shall act in accordance with the rules then in force of
the American Arbitration Association (or any successor thereto), subject,
however, to such limitations or directions as may be placed upon him or her by
the provisions of this Agreement. Each party shall pay the fees and expenses of
its respective attorneys and both shall share equally the fee and expenses of
the arbitrator as well as any fees payable to the American Arbitration
Association or its successor. No arbitrator shall be a person who is or has been
a director, officer, shareholder, partner, associate, employee, or other
principal of either party. The arbitrator shall consider all testimony and
documentary evidence which may be presented at any hearing as well as relevant
facts and data which he or she may discover by investigation and inquiry outside
of such hearings. Each party shall have the right to be represented by counsel
and to cross examine witnesses.

            Section 6.3 An arbitration to determine whether or not Owner has
"cause" to terminate this Agreement under Section 3.2 hereof shall be submitted
to an arbitrator who has had at least ten (10) years experience in the
management of office buildings in the District of Columbia.

            Section 6.4 The obligation of the parties to submit a dispute to
arbitration is limited to disputes arising under those Articles of this
Agreement which specifically provide for arbitration.


                                       15
<PAGE>

                             MANAGER:

                             CROW-WASHINGTON OFFICE MANAGEMENT
                               COMPANY, INC.

                             By:         /s/ T.C. Roth            (Seal)
                                ----------------------------------
                                T. Christopher Roth
                                Vice President

                             OWNER:

                             AVENUE ASSOCIATES LIMITED
                               PARTNERSHIP

                             By: MARKET SQUARE ASSOCIATES

                                  By: CROW-PENNSYLVANIA AVENUE
                                        LIMITED PARTNERSHIP

                                  By: CROW-WASHINGTON CBD
                                        DEVELOPMENT
                                        CORPORATION

                                        By:         /s/ T.C. Roth         (Seal)
                                           -------------------------------
                                           T. Christopher Roth
                                           Vice President

                             By: DIHC MARKET SQUARE, INC.

                                  By:      /s/ Herman A. Vonhof         (Seal)
                                     -----------------------------------
                                             Herman A. Vonhof

ACKNOWLEDGED AND AGREED:
DIHC MANAGEMENT CORPORATION

By:      /s/ C.W. Strawser    (Seal)
   ---------------------------
   Charles W. Strawser, Jr.
   Senior Vice President


                                       16