MARKET INSIGHTS
August 23, 2007

Richmond, VA; August 22, 2007: John B. Levy & Company is pleased to announce that it is has completed the financing for 11 flex/industrial buildings located in Central Pennsylvania. The properties, 460,000 square feet in total, are located just off of the Pennsylvania Turnpike, south of Harrisburg. The Counties of Dauphin, Cumberland, York, Lebanon, and Perry form the Central Pennsylvania Industrial Market and are a major hub for trucking companies delivering goods all throughout the northeast. Harrisburg is conveniently located 75 miles from Baltimore, 100 miles from Philadelphia, 110 miles from Washington D.C. and 200 miles from Pittsburgh.

The Central Pennsylvania market is far and away the largest of all submarkets included in the Tristate (PA, NJ, DE) industrial market. The Central PA submarket is comprised of over 140,000,000 square feet of industrial space or 38.6% of the entire industrial base. The Central PA submarket enjoys a very low vacancy rate of 5.15% with over 4,000,000 square feet of positive absorption in 2006. Continued rent growth and solid market fundamentals appear likely to improve with growing demand for distribution facilities in the region. This market benefits from excellent infrastructure – one of the key factors driving the distribution segment of this market.

The loan was financed with a fixed-rate of 5.73%, 10-year term, with 36 months of interest-only payments. The transaction was complicated by the tenant-in-common (TIC) structure which allows for many different owners to participate in institutional-quality real estate.

In addition to structuring and placing significant capital transactions, John B. Levy & Company undertakes extensive research on the commercial mortgage industry. The firm’s principals work extremely closely with clients; as a result the firm is able to recommend financial structures that are best suited to each individual borrower based upon fluctuations, changes, and irregularities in the market, even in an industry such as this which experiences rapid changes.

Firm Background
John B. Levy & Company, Inc. is a real estate investment-banking firm founded in 1995 and headquartered in Richmond, Virginia. In addition to investing its own proprietary funds into transactions with their clients, the firm raises equity and debt for developers and owners of commercial and multi-family projects nationwide. The firm has structured over $2 billion in financing. During the past 90 days, the firm has successfully closed $300 million in transactions, each with its own property specific challenges.
The firm’s founder, Mr. Levy, is an expert on commercial real estate financing and trends, and, in particular, on the effects of interest rates on the commercial real estate markets. He was the originator and author of the Barron’s/John B. Levy & Company National Mortgage Survey, a monthly survey of more than 30 of the country’s largest institutional investors, and of buyers and sellers of commercial mortgage-backed securities. The survey, which appeared monthly in Barron’s, ran for more than 23 years. He is also co-creator of The Giliberto-Levy Commercial Mortgage Performance Index (sm), the first and pre-eminent index to measure the performance of investments in the commercial mortgage industry. The Index is published each quarter in the Giliberto-Levy Monitor, a publication that provides detailed analysis and commentary on commercial mortgage investments.

For more information, visit the firm’s website at www.jblevyco.com.

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