Caruso Affiliated Holdings Buys Marina Waterside in Marina del Rey; Plans Major Renovation.

Business Editors/Real Estate Writers

LOS ANGELES--(BUSINESS WIRE)--Jan. 21, 2004

Caruso Affiliated Holdings has purchased Marina Waterside, a 10-acre retail center located on Lincoln Boulevard between Mindanao Way and Fiji Way in Marina del Rey from Carlyle Realty Holdings. The sale does not include the land which is owned by the County of Los Angeles. In December the County approved the transfer of the long-term land lease to Caruso.

"Marina del Rey is one of the most demographically desirable areas in the city and it's among the most underserved markets," said Rick Caruso, CEO. "We plan to turn the center into the jewel of the Marina by completely transforming it with our brand of style and amenities."

Marina Waterside is anchored by a Ralphs which plans to renovate and convert the store to its upscale Ralphs Fresh Fare model. Other tenants include Bank of America, California Pizza Kitchen, Pier 1 Imports and Chico's along with several cafes and smaller shops. The total renovation investment is estimated to be $11 million, which will include significant architectural and landscaping improvements to create a more inviting center that better serves the community. The company expects to begin its renovations in the second quarter and complete the project improvements by year-end.

Caruso points out that Caruso Affiliated now controls two of the best retail sites in the Marina area, with Marina Waterside and Playa Vista Town Center. Playa Vista Town Center, for which Caruso Affiliated has been selected as developer, will comprise 195,000 square feet of retail, restaurants and entertainment space along with 175 apartments.

"With the two centers we control some very attractive retail space that we will be marketing to top flight national and boutique local tenants," said Rick Moses, senior vice president, chief development officer, Caruso Affiliated Holdings.

Marina Waterside was built in 1964 and renovated in 1981. Caruso's in-house design group, along with a consulting team that includes Perkowitz & Ruth architects and Richard Sawyer design, have already begun planning the center's transformation.

Caruso Affiliated Holdings is widely recognized for its open-air retail destinations that are major destinations and gathering places because of their large public spaces and entertaining features such as dancing fountains, kiosks and art works. The Grove, its wildly successful center adjacent to the historic Farmer's Market in midtown Los Angeles, has attracted an estimated 18 million visitors during its first year. Other Caruso projects have become town centers in communities such as Encino, Calabasas and Thousand Oaks. Currently in planning stages is the Glendale Town Center, a 15-acre destination in the heart of Glendale, California.