January 28, 2008

Virtú Investments, LLC and Ratel Investments, LP Acquire the Gulf Pointe Apartments

Houston, TX — Virtú Investments, LLC, a San Francisco based real estate investment management firm, and Ratel Investments, LP, a Tiburon, CA based real estate co-investment firm, purchased the Gulf Pointe Apartments in Houston, TX in January of 2008. The 240-unit, Class A quality apartment community is located in the burgeoning Southeast Houston submarket, an area that has seen significant rent and occupancy growth over the past few years. Due to Virtú’s previous experience in a nearby submarket and solid history of performance with the Seller, Virtu had a competitive advantage on the purchase of the property.

The Gulf Pointe investment gives Virtú and Ratel the unique opportunity to purchase a recently built Class A quality asset in a rapidly improving market for an attractive price per unit, especially in comparison to replacement cost. The property strategically sits on the edge of the Southeast Houston and Clear Lake submarkets, slightly west of I-45 and a few blocks south of Beltway 8. Both are major commuter thoroughfares, connecting with all major highways in the Greater Houston area. Virtú and Ratel believe that a value add approach consisting of a modest renovation to the property, in conjunction with the strength of the submarket, will fuel strong rent growth and high occupancy well into the future.

Virtú and Ratel will execute a modest renovation to Gulf Pointe that will mainly encompass work on unit interiors, as well as improvements to building exteriors and the overall look of the property. Specifically, interior improvements will include installing “plank” faux wood flooring in selected units, upgrading window treatments and installing 164 new washer/dryer units. Exterior renovations will consist of exterior paint and substantial aesthetic upgrades to the property’s leasing office, clubhouse, fitness center, pool and landscaping, as well as the construction of several new detached garages. Virtú and Ratel anticipate this renovation will enhance curb appeal, improve amenities and raise the profile of the property.

Virtú and Ratel assumed a market HUD loan serviced by Davis-Penn at a fixed interest rate of 5%, with a .8% PMI. However, there are no HUD rental rate or income qualifications for the property.

The Gulf Pointe Apartment Homes acquisition was sourced by Arizona based Regional Acquisitions Director Marc Olivieri. For more information concerning other multi-family acquisitions throughout the Midwestern United States, contact Marc Olivieri (480 773-1619). For information concerning acquisition possibilities in the Western U.S., contact Stuart Bone (415 999-2088). For information concerning commercial acquisitions throughout the U.S., contact Will Fleming at Virtú Commercial (415 398-4202).

Michael Green and Scott McWhorter formed Virtú Investments in 1997. Since then, the company has acquired over forty five properties throughout the country. The company's current portfolio is valued at approximately $450 million and Virtú has approximately $140 million of private equity under management. Virtú performs its own property management and has primary offices in San Francisco and Carlsbad, CA, and satellite offices in Seattle, WA and Scottsdale, AZ.

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