Cleveland, Ohio - K.R.I. announced today that it has acquired Colony Courts Apartments, a 111 unit apartment community located near Shaker Square in Cleveland, Ohio. K.R.I. plans to make significant common area improvements including 850 new windows, new landscaping, new signage, new lighting and laundry room upgrades. Suite improvements will include new kitchens, remodeled bathrooms, ceramic tile and crown molding. The community will also be renamed Van Aken Crossing I, II, & III to differentiate the property from its previous owner of 19 years.

This property is particularly attractive to us because of the excellent location, unusually generous unit mix (64 two bedroom, 1 bath units) and extra large floor plans that even include walk-in pantries, says Mr. Kenneth A. Gee, Co-Managing Partner at K.R.I. Capital Partners. We believe this property is well suited for repositioning because of its great location on a major boulevard right along the Rapid Transit line and the excellent condition of the contiguous properties, adds Mr. Gee.

Cleveland, Ohio - K.R.I. announced today that it has sold Buckwood Apartments, a 28 unit apartment property located at Shaker Square. This represents the first step in the liquidation of a 151 suite portfolio we acquired in December 2003 near the Square, says Mr. Kenneth A. Gee, Co-Managing Partner at K.R.I. Capital Partners. We are currently marketing the balance of the portfolio to prospective buyers and have received a great deal of interest. We hope to have the balance of the portfolio under contract within the next 9 - 12 months, adds Mr. Gee.

The portfolio has undergone significant renovation over the last year and a half and is now stabilized with rents significantly higher than under the prior ownership. Renovations included new windows, new common area carpet, resurfaced parking areas, and many unit upgrades.

Cleveland, Ohio - K.R.I. announced today that it has added to its Shaker Square portfolio of apartment communities with the acquisition of Ashwood Courts, a 38 unit historic apartment property located right on the Square. This acquisition makes the number of units owned by Messrs. Kenneth A. Gee and Gary L. Lieberman at Shaker Square to 263 units. Mr. Gee and Mr. Lieberman are the founders of K.R.I. Capital Partners, a locally owned private equity real estate investment firm.

This acquisition just makes sense for us given our large presence at the Square. We continue to like the Square because of its strong rental demand and close proximity to some of Cleveland's landmark employers such as the Cleveland Clinic, University Hospitals and Case Western Reserve University, says Mr. Lieberman.

This property is already a good property. Our plans for this property include the implementation of operational improvements and continuing the physical improvement plan started by the previous owner. The Square is benefiting from significant investment by its new owner and we believe that this property will benefit greatly as the area continues to improve, added Mr. Lieberman.

Cleveland, Ohio - K.R.I. announced today that it has hired Ms. Melody Thomas to serve as Regional Property Manager for its Shaker Square area properties. Ms. Thomas comes to K.R.I. with several years of property management experience with various property management firms. She has managed both large and small properties. Her broad depth of operating experience will be a great asset to our firm, especially in the Shaker Square area where we have several properties undergoing significant renovations, says Managing Partner, Kenneth A. Gee.

Cleveland, Ohio - K.R.I. announced today that it has closed on a 151 unit apartments portfolio located in the Shaker Square submarket on the east side of Cleveland, Ohio. Plans for the portfolio include a complete makeover to the common areas and suites and will include new windows, carpet, lighting, parking areas, new kitchens and updated baths, ceiling fans, new window treatments and repairs to the building mechanicals. Senior debt financing for the acquisition and improvements was provided by the Investment Real Estate Group of National City Bank.

We really like these properties because of the inherent potential they have, given their historic qualities, very large units and location in a strong rental market. They are close to the Cleveland Clinic, University Hospitals, CWRU and the rapid train station located at the Square, says Managing Partner,
Kenneth A. Gee.