Amstar Group Completes $1 Billion in Commercial Property Investment Activity During 2004; Targets $1.25 Billion in Leveraged Equity Investments.

DENVER -- Amstar Group:

--Real Estate Private Equity Firm's Smart-Money Strategy Combines Value-Added with Core-Plus and Opportunistic Investing, Continues to Achieve Industry-Leading Returns; Recent Acquisitions Include 600,000 Square Feet of Office Space and 259 Units of Urban Multifamily Development

Amstar Group, a real estate private equity firm based in Denver, Colorado, today reported that during 2004 the firm completed or placed under contract investment acquisitions, dispositions and developments valued in excess of $1 billion, announced Gabe L. Finke, general partner and CEO of Amstar. The activity involved more than 2.8 million square feet of office, 696 multifamily units and 791 hotel rooms.

Amstar has targeted deployment of $1.25 billion in leveraged equity investments, including the commitment of more than $300 million of its own discretionary equity. Over the past 24 months, Amstar has harvested significant investment returns for itself and joint-venture partners through a disciplined disposition program, and is also considering opening its fund to outside institutional investors for the first time in the company's nearly 20 year history.

"We're strategically positioned to capture tremendous value for ourselves, our joint-venture partners and our institutional investors because most importantly, we understand the fundamentals of real estate, can move quickly to close transactions, and bring a high level of execution certainty to our transactions," said Finke, who notes that the firm has closed every deal it decided to pursue in nearly 20 years of successful investing. "Those are crucial elements in today's marketplace. With abundant capital squeezing limited opportunities even further, investors must act quickly and smartly to compete today."

Since inception, Amstar has invested approximately $2 billion domestically in office, apartment and hotel properties. It has recently decided to add retail and industrial properties to its portfolio.

"In 2004, we clearly defined the tenets of our investment program to capture value and enhance returns by primarily focusing on the office and multifamily sectors. Additionally, we refined our industrial property resources to increase holdings in that area, and will continue to explore opportunities that meet our investment criteria in the hotel and retail sectors," said Finke. "More importantly, 2004 was a year to continue building foundations with investment partners. Through a series of strategic joint-ventures with operating partners in key markets, we have set in motion projects and alliances that will fuel the future growth of Amstar well into the next decade."

Mr. Finke cited a number of successful investment and development projects in 2004 as examples of how Amstar expects to apply its expertise in the future. Highlighted transactions completed in 2004 include a $46 million acquisition of two historic office buildings in Downtown Houston; acquisition of two infill sites in Southern California now under development as multifamily projects; signing a $110 million lease with the Department of Justice in Washington, DC.; recapitalization of Independence Plaza, a 25-story office tower in Denver; disposition of a 437-unit luxury apartment community west of downtown Houston; disposition of 300 East Lombard, a 275,000-square-foot office building located within Baltimore's central business district for $40 million; and disposition of the 1.1-million-square-foot Colorado Center (now Yahoo Center) in Santa Monica for $443.6 million.

About Amstar Group, LLC.

Amstar Group, LLC is a real estate private equity firm headquartered in Denver, Colorado. Founded in 1987, Amstar has since acquired and developed 75 properties located across the United States valued at approximately $2 billion. The company's primary property types include office, multifamily, industrial, hotel and retail. Markets targeted for new investment include all major metropolitan areas across the United States. The private equity firm continues to successfully acquire under performing assets in A locations and develop assets in markets with high barriers to entry. As of December 31, 2004, Amstar had equity under management of approximately $400 million.