Construction Underway on Allen & O'Hara California State University Student Apartments.

Business Editors

MEMPHIS, Tenn.--(BUSINESS WIRE)--Sept. 30, 2002

With construction already underway, Allen & O'Hara Education Services, LLC (AOES), a wholly-owned subsidiary of Allen & O'Hara, Inc., recently participated in a groundbreaking celebration for the University Village student apartments it is developing on the campus of California State University at San Marcos, California. AOES was selected by the California State University (CSU) system to develop and manage the first privatized, on-campus student housing complex on any of its 23 state university campuses. The development format established at the Cal State San Marcos site will become a prototype for developments on other CSU locations. Project development costs of approximately $28 million were financed through the sale of tax-exempt bonds.

University Village, the first of several phases of housing to be built on the Cal State San Marcos campus, will accommodate 460 students, primarily freshmen. The apartments were designed by Onyx Architects of Pasadena, California, and are composed of two and four-bedroom units. Each apartment features its own dining area and kitchen, and each bedroom will be wired for high-speed Internet connections, telephone, and cable television. Each building will have community meeting rooms and lounges. University Village is expected to be completed next summer, with students moving in at the beginning of the fall semester of 2003.

Working with AOES as development consultant is Hutton Development Company of Costa Mesa, California. Hutton has over 20 years development experience, including student housing at the University of California Riverside. Elia Construction Company of Calabasas, California is the contractor.

Cal State San Marcos is a rapidly growing university of 6,500 students nestled in the foothills of northern San Diego. Distinguished by its small class sizes, accessibility of faculty, and challenging academic programs, Cal State San Marcos is projected to double in size by the year 2010.

Memphis-based Allen & O'Hara is a diversified real estate developer and manager with almost 40 years experience in the student housing industry. Allen & O'Hara has developed, owned, or managed 80 student housing properties comprising over 28,000 beds in 21 states. Through the years, Allen & O'Hara has housed nearly 400,000 students. AOES is currently managing more than 7,600 beds at student residences at the University of Louisville, the University of North Carolina, North Carolina State University, Alabama A&M University, and Salisbury State University, to name a few.