SOURCE: Equastone

May 29, 2007 15:11 ET

Equastone Momentum Continues With Opportunistic Dallas Acquisition

SAN DIEGO, CA--(Marketwire - May 29, 2007) - Equastone announced the purchase of the Merit Centre portfolio in Dallas, Texas. The portfolio includes three Class B office properties, totaling 295,440 square feet, located in the East LBJ Freeway sub-market. With Merit Centre, Equastone has acquired over 1.8 million square feet in 2007.

Clint Harrington, Executive Vice President for Equastone, said, "After underperforming for many years, we expect occupancy and rental rates in North Dallas to recover due to the expansion of the LBJ freeway and the improving fundamentals of this region. With higher vacancy and lower rental rates in this sub-market, we were able to purchase these properties well below half of replacement cost."

Equastone will invest over $2 million in upgrades to the property over the next year, including renovations to the lobbies and common areas, modernization of the elevator and mechanical systems and enhancements to the exterior. Harrington continued, "The exterior and lobby upgrades will significantly improve the image and appeal of the buildings so we expect the project will lease-up fast. In addition, new tenants will be offered attractive improvement packages and procuring brokers will receive special incentives. New anchor tenants will have the opportunity to re-name a building and gain prominent visibility along one of the most highly used freeways in Texas."

Equastone has awarded the management and leasing of Merit Centre to Bradford Companies. Bernard Deaton, Managing Partner of Bradford, said, "We are extremely excited to be selected as the management and leasing team for this project. Metropolitan Dallas has experienced positive absorption in each quarter since the end of 2004 and this project is poised to take advantage of these positive economic signs." Bradford leases and manages over 12,000,000 square feet of commercial properties throughout the Dallas Metropolitan area.

Equastone intends to acquire $1 billion of office and flex properties throughout the United States over the next year and is actively seeking acquisition opportunities. California, Oregon and Washington investment offerings should be directed to Chris Stai at cstai@equastone.com. All other investment offerings should be directed to Jeff Schindler at jschindler@equastone.com. Equastone and its affiliates currently have offices in San Diego, Denver and Houston, and own properties in California, Arizona, Colorado, Nevada, Louisiana, Texas, Georgia and Oregon.

Equastone is a real estate investment firm specializing in opportunistic and value-added real estate investments. Equastone manages investment capital on behalf of Equastone Real Estate Funds. For more information call Mykel Sprinkles at 858-812-3261 or visit www.equastone.com.

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