GMAC Commercial Mortgage Delivers Major Equity for Purchase of Prominent D.C. Apartment Complex.

Business Editors

COLLEGE PARK, Md.--(BUSINESS WIRE)--Aug. 15, 2002

The Washington, D.C., office of GMAC Commercial Mortgage Corporation (GMACCM) recently closed a large equity investment with one of its affiliates and a joint venture partner, Ross Development, LLC for the acquisition of The Seven Springs Village Apartments in College Park, Md.

GMACCM was advised by its subsidiary, GMAC Institutional Advisors (GIA).

The joint venture purchased Seven Springs in June for $90,000,000 from the original developer of the project, who owned and managed it since it was built in 1966.

"In our opinion, suburban Washington, D.C., is one of the best performing apartment markets in the U.S., and this sub-market of suburban Maryland is especially strong," commented GIA Vice President and Investment Officer, Steve Stepler. "In Seven Springs we welcomed the opportunity to work with Scott Ross of Ross Development, LLC, a resourceful, well-established owner and manager of suburban Washington, D.C., multifamily real estate."

Seven Springs has excellent highway visibility and access and is near the University of Maryland campus and numerous suburban D.C. employers which are easily accessed via the campus bus service, the nearby Washington, D.C., Metro commuter system and the New Carrollton Amtrak station.

Seven Springs Village is a well-maintained 983-unit complex comprised of three mid-rise buildings and 24 garden-style buildings on 33 acres, located at the intersection of I-495 and I-95.

Seven Springs' amenities include private swimming pool, tennis courts and a clubhouse, which will be renovated as a fitness center and leasing office. 8,000 square feet of on-site retail space provide a daycare center, hairdresser, drycleaner, deli and convenience store to serve Seven Spring's residents.

According to Stepler, GIA viewed this transaction as a means of demonstrating GMACCM's commitment to increasing investment activity in the Mid-Atlantic region and the Washington, D.C., market specifically.

Said Stepler, "While there are a lot of financing transactions in this dynamic metro market, few investors deliver both debt and equity capital to close a deal as GMACCM does through its local Washington, D.C., office. This gives GMACCM a key advantage with its partners as active investors in very competitive and time sensitive acquisition transactions. Seven Springs marks the fourth D.C., apartment acquisition of GMACCM, advised by GIA, in the past two years, totaling 2,000 units in this specific metro market."

GMACCM Vice President Marvin Hill of the local Washington, D.C., origination office is the point person who arranged this equity transaction with GIA. Commented Hill, "Once again, the GMACCM family worked together in a timely fashion to resolve issues and make this transaction become a reality."

GMAC Institutional Advisors, LLC is a SEC registered investment advisor specializing in commercial real estate equity and debt investment and is a wholly-owned subsidiary of GMAC Commercial Mortgage Corporation (GMACCM).

GMACCM, a wholly-owned subsidiary of GMAC Commercial Holding Corp., is a premier financial services firm with extensive funding sources that, coupled with a broad menu of innovative financing programs, serve the needs of borrowers of commercial real estate debt as well as the providers of such capital.

GMACCM is an industry leader in loan origination, servicing, asset management, investment management and technology services.

The diverse lending and servicing specialist and its affiliates have more than 85 offices worldwide. GMACCM has a servicing portfolio exceeding $154 billion and provides a variety of financing products and services including permanent, interim, mezzanine and construction lending as well as equity capital.

GMACCM has specialized lending units focused on healthcare, hospitality and franchise and equipment lending.

News releases and other information about GMACCM, its products and services are available at www.gmaccm.com.