November 1, 2007

Virtú Investments Acquires the Grand Rapids Industrial Portfolio

Grand Rapids, MI — Virtú Investments, LLC, a San Francisco based real estate investment management firm, acquired five industrial/flex buildings (collectively, the Grand Rapids Industrial Portfolio) in Grand Rapids, MI in September of 2007. The buildings range in size from 23,500 to 65,270 square feet and were recently constructed, with four of the five buildings under five years old. The Grand Rapids Industrial Portfolio purchase gives Virtú the opportunity to acquire five attractive properties for approximately 80% of replacement cost, with immediate upside in one of the fastest growing and most diversified markets in the Midwest.

With a population of over 1.3 million, Grand Rapids is the second largest city in the state of Michigan and the central hub of Michigan's west coast. As recently as 2005, the Grand Rapids Metropolitan area was selected as one of America's "Best Places to Live and Work" by both Best Places Almanac and Expansion Magazine. Since 2000 Grand Rapids has experienced over $2.5 billion in new construction, with more than a billion dollars of new real estate investment currently occurring in the downtown area alone, much of which is attributed to the increasing demand for state of the art healthcare and medical research facilities in the area.

Virtú considers the Grand Rapids Industrial Portfolio to be a strong investment for a variety of factors, including the quality of buildings, diversity and strength of tenants, strong economic growth climate of the market, reasonable price per square foot and higher than normal yield at time of purchase. Specifically, Virtú's strategy in purchasing the asset is to acquire quality single-tenant buildings with strong tenants at attractive current yields, which Virtú believes will generate healthy returns as leases mature over time.

Virtú will be obtaining new, non-recourse 10-year financing from PPM at a fixed rate of 145 basis points over the 10-year Treasury Bill. This rate was locked at 6.15%. The first 3 years of the loan is interest only. Virtú believes the loan will facilitate excellent cash flows to investors from date of purchase with a strong IRR return, and will further provide stability for CAP rates upon disposition.

The Grand Rapids Industrial Portfolio purchase was sourced by Washington based Commercial Acquisitions Director John Green. For more information concerning commercial acquisitions throughout the United States, contact John Green at Virtú Commercial (360 620-1800). For information concerning multi-family acquisitions throughout the Midwestern U.S., contact Marc Olivieri (480 773-1619). For information concerning other multi-family acquisition possibilities in the Western U.S., contact Stuart Bone (415 999-2088).

Michael Green and Scott McWhorter formed Virtú Investments in 1997. Since then, the company has acquired over forty properties throughout the country. The company's current portfolio is valued at approximately $400 million and Virtú has approximately $120 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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