American Realty Advisors Acquires Land's End Apartment Homes in San Francisco Peninsula.

GLENDALE, Calif. -- American Realty Advisors announced today the acquisition of Land's End Apartment Homes, a 260-unit multi-family coastal community located in Pacifica, California, just south of San Francisco and north of Silicon Valley. Completed in 1979, the property consists of eleven two- and three-story buildings. The Class-A apartments were acquired on behalf of one of American's value-added commingled funds and represents a joint venture with Fowler Property Acquisitions, LLC. The partnership intends to reposition the oceanfront community by investing over $5 million in improvements that will promote local job creation.

Situated on a bluff directly above the Pacific Ocean, Land's End offers its tenants superior ocean views and direct beach access. Nearby major employers include Genentech, Inc., Oracle, the San Francisco International Airport, United Airlines Maintenance Division and Gap, Inc. In addition, the property is in close proximity to the area's three regional shopping malls: Stonestown Galleria, Tanforan and Serramonte. Land's End is the only large beachfront property between Marin and Santa Cruz.

Pacifica enjoys an attractive demographic profile. In 2005, the average family household income within a one-mile radius of Land's End is $104,882 and the median home value within a one-mile radius is $528,339, according to Claritas. Furthermore, Pacifica has the highest median household income among the San Francisco and San Mateo regions.

Stanley Iezman, American's Chief Executive Officer and President, commented: "Our acquisition of Land's End is anticipated to be mutually beneficial to both residents of the property, as well as investors in our Fund. We expect the property to benefit substantially from the proposed upgrades and to generate solid returns over the course of our holding period." Mr. Iezman added, "As housing affordability in San Francisco remains a topic of concern, demand for well-located, quality apartment homes will make Land's End an exceedingly attractive asset."

American Realty Advisors is a leading provider of institutional real estate investment management services including acquisition, disposition, development, structured finance, and active asset management. With $2.1 billion in assets under management, American has created customized investment strategies for public employee and corporate pension funds, endowments, foundations, and Taft-Hartley funds for over 15 years. The firm's nationwide portfolios include office, industrial, multi-family, and retail properties. Information regarding American can be found online at www.americanreal.com.