New York-July 22, 2004--The Praedium Group LLC, a New York City-based national real estate investment firm, and New York City-based Pinnacle Realty Company announced today the recapitalization of the Anita Terrace co-op in Rego Park, Queens.

Under the Praedium/Pinnacle plan, equity ownership for existing co-op shareholders and the co-op structure itself will be preserved in exchange for refinancing the existing mortgage and paying other claims and expenses. Praedium/Pinnacle will also acquire ownership in 238 sponsor units.

The court appointed Chapter 11 Trustee, Zachary B. Kass, had originally obtained approval from the U.S. Bankruptcy Court for a 363 sale and liquidation of the property, which would have allowed the winning bidder to de-convert the co-op structure and assume ownership of units formerly owned by the co-op shareholders. These residents would have remained in their homes as tenants, but would no longer have owned them.

Built in 1952, the three building, 14 story complex located at 99-40 and 99-60 63rd Road and 99-05 63rd Drive, is comprised of 564 units totaling 808,920 square feet. The luxury units include studio, one, two, three and four bedroom apartments.

The Anita Terrace co-op board took over management of the property in 1999, eight years after the building was converted to co-op status by ViSutton Associates, and filed for bankruptcy in 2001.

Frank Patafio, Praedium Group principal, said, "Praedium is pleased it was able to offer the co-op owners at Anita Terrace a solution that preserved their rights and status as equity owners. Owning your home is an important part of the American dream and we were in the position to help this group of New Yorkers retain their hard-earned position as home owners."

The Praedium Group is a real estate investor focusing on under-performing and under-valued assets throughout North America, with $4 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.