STONEWATER ACQUIRES ONE NORTH STATE STREET IN CHICAGO

Los Angeles, CA – May 2007 – Stonewater Partners announced today that it has closed on the purchase of One North State Street located in Chicago, Illinois. One North State is a 523,000 square foot historic office building currently 48% leased to five tenants. The Property was built in 1912 by the firm Holabird & Roche originally for the Mandel Brothers department store. The Property is ideally located on State Street in close proximity to retail, dining, lodging and public transportation.

The building’s current tenants include International Academy of Design and Technology, National Opinion Research, Hostway, Help at Home and Zipatoni. Commenting on the transaction, David Stade, a Stonewater principal, stated "We are excited about expanding our Chicago presence and adding another historic building to our portfolio. Given the rebounding of the Chicago market, proximity to the Block 37 mixed use development and our capital improvement program implementation, we believe there is significant momentum that will increase occupancy of the asset to stabilization.”

Jeffrey Toporek, also a Stonewater principal, added “the transaction is a prime example of Stonewater’s multi-tenant value-add investment strategy. The acquisition also expands our Midwest portfolio and brings us to nearly 2.5 million square feet acquired across the country. In addition, we are also pleased to announce that Transwestern will take over property management responsibilities and JF McKinney will be leading the marketing and leasing efforts.”

For further information:
David Stade
Tel: (310) 209-0500

Jeffrey Toporek
Tel: (914) 285-3700