PRAEDIUM GROUP AND AFFIRMATIVE EQUITIES COMPANY SELL MULTI-FAMILY FLORIDA PROPERTY FOR $10 MILLION

New York and Orlando-July 13, 2004--The Praedium Group LLC, a New York City-based national real estate investment firm, and Affirmative Equities Company, also a New York City-based real estate firm, announced today the sale of The Palms at Livingston, located in Lutz, Florida for $10.1 million, or $47,418 per unit. Current occupancy is 94 percent.

Built in 1990, the two story multi-family garden property located at 15420 Livingston Avenue comprises 213 units. Since its purchase in July 2001, numerous capital improvements have been made including landscaping, unit interiors, pool deck and clubhouse.

Gerald Smith of Smith Equities, Orlando, FL represented the sellers. The buyer is a joint venture between Sterling American Property, Inc. and BH Management.

Frank Patafio, Praedium Group principal, said, "The Palms property offered us a superb opportunity to buy a strongly situated property, renovate both the exterior and interior of the development, and then sell in a market supported by its proximity to Orlando. The Florida market continues to offer Praedium great opportunities like The Palms."

Andy Jubelt, Affirmative Equities Company president, said, "In the three years we've worked with Praedium, we've been able to take advantage of a number of investment opportunities. Our disposition of The Palms is the latest in a series of properties we've successfully rehabilitated, leased, stabilized and sold together."

In July 2001 Praedium and Affirmative Equities Company teamed together again to acquire Rollingwood II, Ridgepoint, Springwood II, Bottlebrush, and Stovecove I and II.

Affirmative Equities Company, L.P., is a full service real estate firm utilizing extensive financial and professional resources to develop or acquire real estate assets. Affirmative Equities Company specializes in creative, innovative strategies to increase stability, value and growth for each real estate asset.

The Praedium Group is a real estate investor focusing on under-performing and under-valued assets throughout North America, with $3.5 billion in total investments to date in 1,200 assets comprised of 33 million square feet of commercial space and 28,000 multi-family units. 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.