FOR IMMEDIATE RELEASE

SOMERSET PARTNERS ANNOUNCES
$50.4 MILLION DOLLAR SALE OF SOMERSET AT SHILOH PROPERTY

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ATLANTA, GA - Somerset at Shiloh, a 498 unit, Class-A multi-family property in Kennesaw (Cobb County) was sold for $50.4million.  The seller was Somerset Partners LLC, a New York based private equity firm. The buyer was Colonial Properties Trust.

Built in 2001, Somerset at Shiloh is a gated rental community featuring spacious one-, two- and three-bedroom apartment homes, an out door pool, fitness center, tennis courts and business center. Somerset Partners acquired the asset in 2004 for $43.5million. Upon acquiring the property, Somerset implemented a joint capital and management improvement program with LEDIC Management which bettered operations at the property significantly. LEDIC, based in Memphis, is a third-party management firm with 25,000 multi-family units under management throughout the southeastern US.

The $50.4million sales price represents a 5.3% capitalization rate according to sources at Somerset. The seller was represented in the transaction by the Atlanta office of CBRE.

Philip Welch, Managing Director for multi-family operations at Somerset Partners, says that despite the sale Somerset is looking to add 1,000 additional Class A units through acquisition and development.  Since 2002, Somerset has assembled a portfolio of 5,000 Class A and B units in markets such as Atlanta, Memphis, Cincinnati, Oklahoma City, Tulsa, Little Rock and Wichita.

In 2005 Somerset entered the mezzanine lending environment with a $65million investment in a structured financing originated by Wachovia Securities.  The loan was secured by 11,000 rental units in Dallas, Houston, Phoenix, Memphis and Atlanta. Somerset intends in to expand its mezzanine lending program in 2007 for multi-family properties.

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Somerset Partners, LLC, is a private equity firm focused on the preservation and growth of wealth through investment in real estate for its investors and principals. With a focus on long-term ownership and high-quality multi-family assets in economically sound markets, Somerset Partners matches its investments with the specific portfolio requirements of its equity partners. Somerset Partners is owned and managed by Keith Rubenstein, Marshall Allan and Philip Welch.