CB Richard Ellis Investors Closes Four Deals for CalSTRS Representing $480 Million; Deals Include a Just-Closed 29-Building Portfolio.

LOS ANGELES--(BUSINESS WIRE)--Sept. 13, 1999--

CB Richard Ellis Investors, an investment advisor for the California State Teachers' Retirement System (CalSTRS) since 1987, announced that it has closed four major deals in 1999 representing more than $480 million in real estate assets and almost 6.5 million square feet.

On July 1 of this year, CB Richard Ellis Investors was given expanded discretionary responsibilities when it became one of nine real estate investment firms chosen to invest in real estate for CalSTRS, following a comprehensive manager search by the state organization.

"Each of the nine investment firms chosen has an opportunity to invest for CalSTRS, which is approximately $2 billion underfunded in its real estate allocation, so competition among the new management firms is strong and productive for CalSTRS," said Gary Neumeier, managing director for the CalSTRS account.

"CB Richard Ellis Investors has been active in investing in real estate assets for CalSTRS, particularly in the past few months. In the last six months, our CalSTRS portfolio has grown from $650 million in assets to $1.1 billion," he continued. "We've worked very hard to source deals that meet CalSTRS' investment objectives."

Deals closed include:

-- Three industrial parks in Atlanta, representing 1.3 million square feet (January 1999);

-- A retail center in San Antonio, Texas representing 530,000 square feet (July 1999);

-- A portfolio of 29 office and industrial buildings spanning 15 states and more than 4 million square feet (August 1999);

-- An office building in Charlotte, N.C. representing 600,000 square feet (August 1999);

In addition to purchasing the properties, Neumeier and his asset management team, headed by Hugh Dirstine, have been able to leverage CB Richard Ellis' vertically integrated platform by providing property management and leasing services through its asset services division.

CB Richard Ellis Asset Services is currently providing property management and leasing services for all properties except the San Antonio Retail Center, said Kent Elliott, managing director for CB Richard Ellis Asset Services. "We have added almost 6 million square feet of space under management as a result of CB Richard Ellis Investors' advisory relationship with CalSTRS."

"Our ability to provide real estate management and leasing services through CB Richard Ellis presents a unique opportunity for clients like CalSTRS. By using these services, we are ensured a high-level consistency of service that our clients have come to expect from us as their real estate investment advisors. Our asset services division can help CalSTRS and other clients maintain and increase the value of their investments over time," said Neumeier.

CB Richard Ellis Investors is a wholly owned subsidiary of CB Richard Ellis, the world's leading real estate services company. CB Richard Ellis Investors is based in Los Angeles, and provides real estate investment services to a broad range of institutional clients representing more than $6.9 billion in assets.

CB Richard Ellis (NYSE:CBG) is the world's leading real estate services company. With headquarters in Los Angeles and with 10,000 employees worldwide, the company serves real estate owners, investors and occupiers through nearly 250 principle offices in 35 countries. Services include property sales and leasing, property management, corporate services and facilities management, mortgage banking, investment management, capital markets, appraisal/valuation, research and consulting. CB Richard Ellis had 1998 revenues of more than $1 billion.