American Stable Value Fund Acquires Two Properties.

Business Editors

GLENDALE, Calif.--(BUSINESS WIRE)--Jan. 12, 2004

American Realty Advisors announced today that it has acquired two properties on behalf of the American Stable Value Fund. The properties are a mixed use Class A retail and office building located in Arlington, Virginia, and a Class A garden style multifamily residential community in Atlanta, Georgia.

The American Stable Value Fund is a core real estate commingled fund that provides the opportunity for institutional investors to invest in a diversified pool of institutional quality private real estate. Although 2003 was a positive year for stocks, many pension plans are still facing underfunding challenges that will not be alleviated by the modest returns in stock and bond investments expected in coming years. As such, solid real estate investments in income producing stabilized properties have become much more attractive to these investors as a way of improving returns and diversifying their portfolios.

American's Managing Director of Portfolio Management, Scott Darling commented: "Core real estate offers investors numerous benefits including strong cash yields, a hedge against future inflation and high risk adjusted returns, and certainly not least of all, diversification." He added: "The American Stable Value Fund is an excellent way for investors at all levels to gain access to these performance characteristics. Core real estate should play a critical role in producing stable predictable returns in any diversified portfolio."

American formed the American Stable Value Fund in response to a growing demand from its prospective clients. To date, the firm has received more than $230 million in commitments from the Fund's clients and they expect to acquire at least another $100 million in properties nationwide over the next year. Stanley Iezman, American's President & CEO commented: "Our mission is to help our clients meet their pension obligations by generating strong returns. We believe the American Stable Value Fund will broaden our ability to assist many more pension plans in achieving this goal."

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 more than $1.6 billion in assets under management, American has been creating 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. American can be found online at www.americanreal.com.