Real Estate Partners Enjoys Explosive Growth in 2003 With $200 Million in Acquisitions; The Company Anticipates Assets to Top $500 Million in 2004

Business Wire

January 16, 2004

NEWPORT BEACH, Calif., Jan 16, 2004 (BUSINESS WIRE) -- Real Estate Partners Inc. experienced explosive growth in 2003, due to its focus on core services, company mergers and acquisitions, and addition of key personnel. As a result of these factors Real Estate Partners was able to acquire almost $200 million in high quality, investment-grade real estate.

These acquisitions included a $145 million multi-family portfolio from EQUITY RESIDENTIAL (EQR). The 2,400+/- unit portfolio includes eight properties located in the Southern and Mid-Atlantic States. Tom Thompson, executive vice president of Coldwell Banker Commercial(R) REP, represented the buyer, REPFund Apartments II LLC. Real Estate Partners Inc., is a managing member of REPFund Apartments II LLC. The seller, EQUITY RESIDENTIAL of Chicago, is the second largest real estate investment trust (REIT) in the United States.

In October of 2003, Coldwell Banker Commercial brokered the $28 million sale of a 816-unit apartment portfolio. The portfolio includes two properties located in Louisiana, one property in Texas and one in Arizona. Coldwell Banker Commercial REP represented REPFund Apartments LLC and Real Estate Partners Inc. as the buyers. The seller was AIMCO Properties of Denver. AIMCO is the country's largest apartment REIT.

Prior to the AIMCO deal, the company closed the $10.3 million sale of Sunset Ridge Professional Plaza, a six-building portion of a nine-building, 119,000+/- square-foot office property located in Henderson, Nev. Tom Thompson of Coldwell Banker Commercial REP represented the buyer, Real Estate Partners Income Fund I LLC. MacDonald Properties of Henderson, Nev. was the seller.

"Real Estate Partners Inc. is proud to represent its investors in the acquisition of these outstanding investment portfolios. These three portfolios have substantially enhanced the value of Real Estate Partners for our investment clients," reported Dawson Davenport, president of REP. "The combination of well-positioned products, low interest rates and the possibility of an emerging economy provide the perfect market environment for such acquisitions. We are currently investigating another several hundred million dollars' worth of additional acquisitions. Paired with the skill and experience of our finance, acquisition, and management teams, we feel these market conditions represent a truly unique opportunity for our investors and partners."

"We utilized the expertise of our team with the local knowledge and national presence of Coldwell Banker Commercial to assist us in these transactions," stated Tom Thompson, director of the Investment Services Division for Real Estate Partners. "Our clients, investors and partners intend to continue the acquisition of multi-family projects and portfolios throughout 2004 and 2005. Our investment team performed swiftly and decisively in bringing these very large and complicated transactions to a successful conclusion."

About Real Estate Partners

Real Estate Partners is a privately held real estate investment services firm specializing in the acquisition, repositioning and management of under-performing properties. The company owns and operates Orange Coast Commercial Inc. DBA Coldwell Banker Commercial REP, providing access to a network of over 300 affiliate offices around the country with a 90-year history and an established reputation for high quality service. The principals and officers of Real Estate Partners are creative, experienced commercial real estate and real estate finance professionals who are dedicated to maximizing investor value through strategic acquisitions, key partnerships and a suite of management services.

About Coldwell Banker Commercial

Coldwell Banker Commercial(R) is a registered trademark licensed to Coldwell Banker Real Estate Corp. The Coldwell Banker Commercial system has more than 500 commercial real estate offices with more than 3,000 sales associates throughout North America, South America, Europe, Africa, Asia and Australia. The Coldwell Banker Commercial system is an industry leader in providing commercial real estate solutions, serving the needs of tenants, landlords, sellers and buyers in the leasing, acquisition, disposition and management of all property types. Coldwell Banker Real Estate Corp. is a subsidiary of Cendant Corp. (NYSE:CD). For additional information, on Coldwell Banker Commercial REP visit the company's Web site at www.cbcrepca.com or contact them at 949-585-7605.

Each office is independently owned and operated except offices owned and operated by nrt incorporated.

SOURCE: Real Estate Partners Inc.

CONTACT: Real Estate Partners Inc.

Dawson Davenport, 877-915-3297

ddavenport@cbcrepca.com

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