PRAEDIUM GROUP AND SCANLANKEMPERBARD SELL OFFICE PROPERTY IN LOS ANGELES FOR $30 MILLION

March 4, 2004-New York and Portland, OR -The Praedium Group LLC, a New York City-based national real estate investment firm, and ScanlanKemperBard Companies, a Portland, Oregon-based real estate merchant banking firm, announced today the sale of 800 Wilshire Boulevard, a 16-story office building located in downtown Los Angeles for $30 million, or $140 per square foot.

Built in 1971 and renovated in 1992, the property is located at the southwest corner of Wilshire Boulevard and Flower Street. The 213,518 square-foot center is currently 85 percent occupied.

Richard Plummer, John Eichler, Anthony Gatti and Andrew Harper of Cushman and Wakefield's Los Angeles' office represented the seller. The buyer was The Ratkovich Company of Los Angeles in association with Prudential Real Estate Investors.

Christopher Hughes, Praedium Group principal, said, "We were attracted to this asset due to its location in downtown Los Angeles. The area offers shopping, public transportation and convenient access to the Harbor Freeway (I-110). With our partner SKB, we pursued an aggressive leasing strategy and in doing so, converted many short-term leases into long-term leases. Ultimately, a buyer emerged who was very interested in the building, and we decided to pursue the transaction."

"The property's strong location, combined with the renaissance occurring in downtown, allowed us to achieve our business plan in less time than we expected," noted Robert D. Scanlan, Principal of SKB. In 2000, a joint venture between SKB and Praedium acquired the 500,000-square-foot, 33-acre Borland Corporation office campus at 100 Enterprise Way in Scotts Valley, California. In 2002, in addition to the purchase of 800 Wilshire Boulevard, the companies also teamed up to purchase Santa Fe Springs Plaza in Santa Fe Springs, California and Margarita Plaza in Huntington Park, California.

Founded in Portland in 1993, ScanlanKemperBard Companies is a leading real estate merchant banking and development advisory firm that acquires properties throughout the western U.S. and has total investments to date of nearly $1 billion. www.skbcos.com.

The Praedium Group is a real estate investor focusing on under-performing and under-valued 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 is currently investing in its most recent $465 million real estate private equity fund, Praedium Fund V. This equity will be leveraged to acquire $1.5 billion in properties. The fund will invest 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.