FOR IMMEDIATE RELEASE

SOMERSET PARTNERS ANNOUNCES
CLOSE OF $100 MILLION FUND

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Investor Building $400 Million Portfolio of Class-A Multi-Family

In Aggressive Acquisition Campaign

(New York , NY – May 31, 2005) -- Somerset Partners LLC, a New York City-based private real estate investor, announced the close of its $100 million Somerset Multi-Family Fund I, which is supporting an aggressive $400 million acquisition campaign of Class-A multifamily housing throughout the Southwest and Southeast United States . The announcement was made by Somerset Partners' Director of Equity Investments Keith Rubenstein.

Since 2002, Somerset Partners has completed seven significant acquisitions to assemble a $175 million, 3,000-unit portfolio made up of properties in markets such as Atlanta , Oklahoma City, Cincinnati , Little Rock , Tulsa and Wichita . In the last five months, Somerset Partners has completed two acquisitions totaling nearly 1,000 units.

“We're targeting markets with diverse tenant demand, supply constraints and exit liquidity,” said Somerset Partners' principal Marshall Allan. “We focus on generating returns for our investors through strategic investments in real estate assets whose fundamentals are under priced, and by implementing a proven business plan to capture that value.”

“Based on response to our first fund, investors are keen to participate in our program,” noted Somerset Partners' Philip Welch. “We've already deployed half the fund to build this growing portfolio, and we're focused on a number of exciting opportunities that will allow us to achieve superior returns for our investors.”

Somerset Partners highlights its Deep Deuce property, a 294-unit, Class-A urban infill property in the newly redeveloped Bricktown area of Oklahoma City , as a prime example of their investment strategy. The asset is well-occupied and benefits from the ongoing resurgence of the local economy.

In April 2005, Somerset Partners completed its most recent acquisition: the Conservatory at Deerfield , a 498-unit Class-A multi-family property in Mason , Ohio , a suburb of Cincinnati , for $43 million. “The Conservatory at Deerfield is another excellent example of properties we seek for our portfolio of Class-A multi-family housing,” Mr. Allan said. “We are long-term owners and are looking to add several thousand units this year, including individual assets and select portfolios.”

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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.