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(BROOKFIELD PROPERTIES LOGO)
    
    NEWS RELEASE
 BROOKFIELD ACQUIRES POTOMAC TOWER Third Premier Asset in Washington, D.C. Portfolio NEW YORK, September 24, 2004 Brookfield Properties Corporation (BPO: NYSE,
TSX) today announced the acquisition of Potomac Tower, a 19-story office tower
in Rosslyn, Virginia, located on the Potomac River directly across from
Washington, D.C. The building was purchased from Deutsche Immobilien Fonds AG
(DIFA), which was advised by Metzler North America, for $106 million. With this
acquisition, Brookfield owns three premier office properties comprising 1.5
million square feet in the Washington, D.C. metropolitan area, all purchased in
the past nine months. Distinctive architecture and unmatched views have established Potomac Tower as
one of the Washington, D.C. areas top-tier and most sought-after assets, said
Ric Clark, President & CEO of Brookfield Properties Corporation. We are
pleased to add this premier property to our growing Washington, D.C.
portfolio. Situated across the Potomac River from Georgetown, Potomac Tower offers a
stunning panorama of the Washington, D.C. skyline including the national
monuments and the Capitol and an open view corridor up and down the Potomac
River. Designed by I.M. Pei and completed in 1989, Potomac Tower is one metro
stop from Washington, D.C.s CBD, and five minutes from Washington Reagan
National Airport. Potomac Tower measures 238,000 rentable square feet and has a 165,000 square
foot eight-level parking garage with three below-grade and five above-grade
levels. The building is 100% leased with three tenants, including Friedman
Billings Ramsey and Northrop Grumman, occupying 70% of the total space. Brookfields portfolio along the Northeast corridor includes 15 million square
feet in New York, 11 million square feet in Toronto and 2 million square feet
in Boston. Brookfields Washington, D.C. portfolio includes 1625 Eye Street,
N.W. and 701 9th Street, N.W. in addition to Potomac Tower. * * *




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Brookfield Properties Corporation owns, develops and manages premier North
American office properties. The Brookfield portfolio comprises 48 commercial
properties and development sites totaling 46 million square feet, including
landmark properties such as the World Financial Center in New York City and BCE
Place in Toronto. Brookfield is inter-listed on the New York and Toronto Stock
Exchanges under the symbol BPO. For more information, visit
brookfieldproperties.com. Contact: Melissa Coley, Vice President, Investor Relations and Communications,
tel. (212) 417 - 7215, or via email at: mcoley@brookfieldproperties.com *********** Note: This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. The words believe,
expect, anticipate, intend, estimate, and other expressions which are
predictions of or indicate future events and trends and which do not relate to
historical matters, identify forward looking statements. Reliance should not be
placed on forward-looking statements because they involve known and unknown
risks, uncertainties and other factors, which may cause the actual results,
performance or achievements of the company to differ materially from
anticipated future results, performance or achievement expressed or implied by
such forward-looking statements. Factors that could cause actual results to
differ materially from those set forward in the forward-looking statements
include general economic conditions, local real estate conditions, timely
re-leasing of occupied square footage upon expiration, interest rates,
availability of equity and debt financing and other risks detailed from time to
time in the companys 40-F filed with the Securities and Exchange Commission.
The company undertakes no obligation to publicly update or revise any forward
looking statements, whether as a result of new information, future events or
otherwise. - 30 -