Cencor Doubles Austin Presence With Portfolio Purchase.

Business Editors

AUSTIN, Texas--(BUSINESS WIRE)--Aug. 29, 2002

In its biggest expansion through the acquisition of existing properties, Cencor Acquisition Company is nearly doubling the presence of Cencor Realty Services and its sister company, The Weitzman Group, in the Austin retail market with the purchase of a portfolio containing eight shopping centers. This represents the first transaction for Cencor's strategic venture with GE Capital Real Estate for the acquisition of existing shopping center properties in Texas' major markets. Cencor is the dominant operator and developer of community retail projects in the Texas market. The seller was a private investor. Austin is a market characterized by rapid population growth, strong retailer demand and a low retail vacancy rate and therefore is an excellent location for the first of several planned statewide acquisitions for the Cencor venture with GE Capital.

The retail portfolio consists of eight shopping centers located throughout Austin, in Round Rock and in Temple, Texas, with a total of 1,368,161 square feet of space. The retail portfolio is currently 93 percent leased. The centers are extremely well located in thriving, high-growth markets and are at locations that offer outstanding visibility and access.

"Cencor's venture with GE Capital closed just this past May, and here we are sixty days later with our first acquisition. This is a testament to the strength of the Texas retail market and the quality of services that Cencor and Weitzman provide for retail properties," said Herbert D. Weitzman, Cencor and Weitzman's chairman and CEO.

Scott Freid, partner in charge of the Austin office of Cencor Realty Services and its affiliate, brokerage firm The Weitzman Group, is responsible for bringing the portfolio to the acquisition company. Negotiations on the transaction were handled by Freid and Randy Woodruff, Cencor's Chief Financial Officer, who represented Cencor Acquisition Company and GE Capital. In addition, Woodruff handled loan negotiations on behalf of Cencor Acquisition Company. Holiday Fenoglio Fowler, L.P., the largest intermediary of commercial real estate capital in the nation, was the mortgage broker for the deal, and Bear Stearns, a leading investment banking, securities and brokerage firm, provided financing.

"Cencor was founded in 1989 with offices in Austin and Dallas/Fort Worth and has been a significant presence in Austin's retail market since then. With this new acquisition by the Cencor and GE Capital venture, Cencor's management and project representation portfolio in Austin now totals 4 million square feet. In addition, Weitzman handles project representation for an additional 1.9 million square feet. I think it also says a lot for our city that the first acquisition of this strategic alliance took place in Austin. The city's long-term economic prospects, as well as the strength of the current retail market, are convincing arguments for a real estate investment of this magnitude. These are well-established centers in mature neighborhoods, making them excellent additions to the Cencor portfolio in Austin," Freid said. The Austin retail market has long ranked as the healthiest major market in Texas in terms of balanced supply and demand.

Weitzman noted, "Our long history in Texas reflects our belief that the state and its major markets such as Austin offer the best real estate opportunities in the United States. This portfolio offers excellent anchors and retailers, centers that are performing at exceptional levels and that offer an excellent complement to our existing portfolio in Austin and throughout Texas. With this purchase enhancing the presence of Cencor and Weitzman in Austin, we are creating an integrated platform for our growth in this core market and in Texas."

Cencor's President and Chief Operating Office Marshall Mills noted, "Cencor has grown through a focus on community retail centers in Texas, and this new acquisition enhances that focus and cements our standing in the key Austin market. This is the first acquisition for our strategic venture with GE Capital, and it shows the real estate community the quality of anchors and locations that we are seeking. This is an ideal acquisition for us, as it meets all our requirements, including strong community-oriented anchors and retailers, excellent locations in mature, growing markets and the opportunity for value enhancement through our comprehensive management and leasing programs."

"GE Capital Real Estate is excited about and this venture with Cencor," noted Ron Lamontagne, Director at GE Capital Real Estate. "Our overall goal is to actively pursue acquisitions in Texas where we can couple sound investment strategies and intimate market knowledge, providing long-standing quality investment returns. This portfolio acquisition and our new relationship with Cencor is a perfect fit for this strategy."

All eight centers in the portfolio are strategically located with excellent visibility in the midst of densely populated communities. The properties also are located in communities where there is limited opportunity for new development. Approximately 64 percent of the space in the portfolio is leased to major retailers, including H-E-B, Academy Sports & Outdoors, Michaels, Stein Mart and Eckerd.

The centers:

-- Anderson Mill is a 171,794-square-foot center located at the northwest corner of U.S. Highway 183 and Lake Creek Parkway in northwest Austin.

-- The center includes H-E-B, Lack's Stores, Hollywood Video, Radio Shack, Taco Bell, Bank of America and others.

-- Century South is a 207,358-square-foot center located at the southwest corner of IH-35 and William Cannon Drive. Retailers in the center include Academy, MacFrugals, World Gym, Blockbuster Video, KFC, Whataburger and Peter Piper Pizza.

-- Market Place is a 295,174-square-foot center located at Temple's major retail intersection of Loop 363 and South 31st Street, peripheral to Temple Mall. The center is anchored by a recently renovated and expanded H-E-B, Bealls, World Gym, Dollar Tree, Advance Auto Parts, Baskin-Robbins, Subway, Altel, TCBY, Pier 1 Imports, Payless Shoe Source, Sally Beauty, U.S. Postal Service, Burger King, Taco Bell, Hollywood Video, Avenue and many others.

-- Springdale Shopping Center is a 163,677-square-foot retail center located at the intersection of U.S. 183 and Springdale (Manor) Road. Springdale is the dominant community retail center in the area, serving Las Cimas and the high-technology suburban East submarket. Retailers in the center include H-E-B, Factory Outlet, North Austin Health Clinic and Austin Diagnostic Clinic, as well as Hollywood Video, Sonic Drive-in, KFC and Frost National Bank.

-- Towne Square Shopping Center is a 77,352-square-foot center located at William Cannon Drive and Manchacha Road, in the midst of a densely populated middle-income neighborhood. Retailers in the center include Eckerd, Wells Fargo, CiCi's Pizza, Hao Hao Restaurant, State Farm, Citi Financial, Pizza Hut, Church's Fried Chicken and others.

-- West Woods Shopping Center is a 205,262-square-foot center located at Bee Caves Road and Walsh Tarlton Lane, adjacent to Barton Creek Mall, in high-growth Southwest Austin in the heart of Westlake Hills. Retailers in the center include Stein Mart, Michaels, World Gym, John Williams Fine Furniture, Eckerd, U.S. Post Office, Bank of America, Radio Shack, Rockfish Seafood Grill, TCBY, Mr. Gatti's Pizza and numerous others.

-- North Park Shopping Center is a 115,747-square-foot center at the northeast corner of Rutland Drive and N. Lamar Boulevard in the densely populated North submarket of Austin. Retailers in the center include H-E-B, Champ Sports, Dollar General, Aaron Rents, One Price Clothing, Schlotsky's, Blockbuster Video, YMCA, One Dollar Deals and others.

-- Round Rock West is a 131,797-square-foot center located at the northwest corner of I-35 and Sam Bass Road, in the Round Rock submarket. Retailers in the center include Gattiland, Eckerd, Taco Bell, Payless Shoes, Hallmark, Avis Rent-a-Car, Hunan Lion Restaurant and others.

The centers will be leased by The Weitzman Group and managed by Cencor Realty Services under the direction of Rheta Williams, director of Austin property management.

Cencor Realty Services, one of the largest shopping center management and development firms in the United States, formed the strategic venture with GE Capital Real Estate for the acquisition of existing shopping center properties in Texas' major markets of Dallas/Fort Worth, Austin, Houston and San Antonio. Properties are acquired by the Cencor Retail Opportunity Portfolio, L.P., an acquisition program for retail properties that is actively pursuing other purchases. Cencor already controls one of the largest non-mall retail portfolios in Texas, with approximately 12.9 million square feet in Texas' major markets.

Cencor ranks as the largest retail property management and development firm that operates in all of Texas' major markets. The company's portfolio has grown from approximately 4 million square feet in 1989 to approximately 11.5 million square feet prior to the Austin portfolio acquisition and 12.9 million square feet today. Cencor operates in Austin, Dallas/Fort Worth, Houston and San Antonio with divisions specializing in property management, asset management, development, construction/renovations/remodeling services and finish-out.

Internal marketing, legal, accounting, architectural and information technology departments support these key functions.

GE Capital Real Estate (www.gecapitalrealestate.com), headquartered in Stamford, Conn., has a portfolio of over $30 billion in assets and more than 30 offices throughout North America, Europe and the Pacific Rim.