PRESS RELEASES

Equastone Refinances Office Building in Phoenix, AZ

(Phoenix, AZ) – Equastone, a private real estate investment firm has refinanced its 86,835 square foot South Mountain Center property, a back-office project located in the Southeast Valley submarket of Phoenix. The San Diego-based firm, which owns the property through Equastone Value Fund, LLC, completed the variable rate financing in its first transaction with Wachovia.

“We are pleased to have started a new relationship with Wachovia. Due to our successful leasing efforts, we were able to refinance the property and provide additional proceeds well above the previous loan balance. We were able to accomplish this even in the currently difficult lending environment which is a testament to value we’ve already added to the project and Wachovia’s ability to underwrite the opportunity. Our current plans are to complete the final leasing of the remaining vacant space and then consider offering the property for sale,” states Thad Meyer, Chief Financial Officer for Equastone.

The single story, back-office building is 75% occupied and a recently signed lease will increase occupancy to 85% when effective. The tenant roster at South Mountain Center includes a telecommunications company, a medical device company, a real estate brokerage firm, and a title company.

South Mountain Center was built in 2001, features modern architecture and a high parking ratio. “The Southeast Valley submarket has experienced significant growth over the past two years. The project is located on Baseline Road which is a major east/west arterial street. The project is located near newly established amenities and housing developments which has aided our leasing efforts,” said Ron Lack, Executive Vice President of Equastone.

About Equastone
Equastone is a leading real estate investment firm specializing in the acquisition and asset management of opportunistic and value-added real estate. Equastone manages investment capital on behalf of Equastone Real Estate Funds, private equity funds for high-net-worth and institutional investors.

Equastone currently owns 61 office buildings encompassing more than 9.3 million square feet throughout the United States and intends to make $1 billion of opportunistic, value-added and distressed debt investments over the next twelve months. For more information about Equastone, call Mykel Sprinkles at (858) 812-3261 or visit www.equastone.com.

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