PRAEDIUM GROUP AND BIRTCHER ANDERSON ACQUIRE LOS ANGELES AREA PROPERTY FOR $11 MILLION

December 5, 2003-New York and Laguna Niguel, CA --The Praedium Group LLC, a New York City-based national real estate investment firm, announced today a joint venture acquisition with Laguna Niguel, California-based real estate company Birtcher Anderson Properties of 5601 East La Palma Avenue in Anaheim, CA for $11 million, or $90 per square foot. Built in 1984, the four-story office property comprises 117,500 square feet.

Steve Batcheller of CB Richard Ellis represented the seller, iStar Financial of New York.

The property is currently 100 percent leased to First American Real Estate Solutions. Extensively retrofitted in 1995 and 2001 at a cost of approximately $8.2 million, the property is completely built out and is served by fiber optic lines and two redundant power substations.

Chris Hughes, Praedium Group Principal responsible for West Coast acquisitions said, "We are happy to have the privilege to partner on another acquisition with Birtcher Anderson. We were attracted to this property due to its excellent location, and high occupancy with a strong credit tenant. Additionally, the asset is located in a market that is in the early stages of a recovery."

Bob Anderson, President of Birtcher Anderson Properties said, "First American Real Estate Solutions will provide stable cash flow for the next 2½ years, while the sub-market fundamentals should continue to keep rent levels growing, due to the area's desirable location for administrative offices of major companies, coupled with a continued absence of new construction."

Since its inception in 1939 as a family enterprise specializing in real estate acquisition, development and property management, the Birtcher Real Estate Group, through its affiliates like Birtcher Anderson Properties, has grown to preeminence as one of the leading real estate firms in the Western United States. Headquartered in Laguna Niguel, Orange County, California, it has constructed and/or developed more than 200 commercial and industrial properties comprising more than 50 million square feet and more than 100 residential projects, totaling over 12,000 units. Birtcher has also acquired in excess of $2 billion of real estate through public and private vehicles and on an advisory basis.

The Praedium Group is a real estate investor focusing on underperforming and undervalued assets throughout North America, with more than $2 billion in total investments to date. Praedium was formed in 1991 with a leading international investment bank as its sole investor.

Building on the experience and exposure gained through this original investment program, Praedium has been a sponsor of commingled real estate private equity funds since 1994. The funds sponsored by Praedium have attracted investors that include public and corporate pension funds, financial institutions, insurance companies and endowments.

Praedium recently closed on a $465 million real estate private equity fund, Praedium Fund V. This equity will be leveraged to acquire $1.5 billion in properties. The fund is investing in mid-cap assets throughout the United States and Canada in the $10 to $70 million range, targeting multi-family, office, retail and industrial property types. For more information please see www.praediumgroup.com.