Getting creative with off-market deals puts firm ahead.

Palisades Financial, LLC (Palfi) had a very successful year in 2005, closing 22 new investment transactions totaling over $47 million.

The firm's continued success has helped position Palisades as one of the best performing investment firms in the New York/New Jersey Metropolitan area.

"Palisades Financial surpassed all of our investment objectives in 2005. We completed transactions for projects we really believed in this past year," said William Procida, principal.

"Our continued growth and performance as a company lies in our unique ability to source and understand very creative, off-market deals on behalf of our Fund and other select institutional partners.

"Our ability to deliver on our promises, identify investment opportunities with significant upside potential and strategically build on our in-house team of professionals has enabled Palisades to consistently out-perform the market."

To celebrate its 10th year in business, Palisades Financial hosted three charity events in 2005 across the NY/NJ metropolitan area, raising over $30,000 for three non-profit organizations, Table to Table, The Rex Foundation and the Intrepid Fallen Heroes Fund.

In 2005, Palfi expanded its management team by bringing aboard two highly experienced businessmen, James F. Calvano and Jack Chimento, joining the firm as principals. James F. Calvano, as the firm's chairman, will chair the company's partners committee and be responsible for the marketing and advertising. Jack Chimento will lead the capital raising efforts. William Procida, founder and chairman, will be returning to what he has built his reputation on, and what he loves best--deal making.

Mr. Calvano joins Palisades Financial after a long career having served in several senior management positions with MoneyGram, Avis Inc., American Express, Travelers Group, Travelers Insurance Companies, Carlson Travel, New Valley Corporation/Western Union and MNE Payment Systems.

Mr. Chimento joins Palisades Financial from Bear Stearns in New York City, where he served as senior managing director responsible for the institutional fixed income desk.

In 2005, Palisades also made the plans to launch its second fund, targeting distressed debt and value-add investment opportunities.

The new Fund will continue to focus on its existing markets of New Jersey, New York, Connecticut, Pennsylvania and Florida.

Additional highlights of this past year include:

* In addition to the appointments of Calvano and Chimento, Palfi welcomed James-Robert Sellinger as a director of Business Development and also Louis Alaimo Jr. as a member of the Business Development team. Jackie D. Vander Ploeg joined Palisades as director of marketing.

* Palisades Regional Investment Fund, in conjunction with joint venture partners Paramount Realty Services and EZA Properties, acquired the 118,000-square-foot Weis Plaza Shopping Center in Kutztown, Pennsylvania.

PRIF is the majority partner in this acquisition.

* A mezzanine loan to Herod Redevelopment, a joint venture between Pinnacle Downtown and Kohl Partners, for The Siena, a $60 million mixed-use redevelopment project. Herod Redevelopment will utilize the loan to redevelop a key location in downtown Montclair, New Jersey. The site is the location of the former Hahnes building, which was recently demolished to make room for Herod's new mixed-use development. The property will be redeveloped to include a retail component and luxury condominiums.

* A $10 million first mortgage portfolio line of credit to Global Home Group, LLC. Global Home Group is using the proceeds from this line of credit towards funding acquisitions, approvals and construction of residential properties located throughout Long Island.

The Global Home Group has substantial land holdings in its Long Island inventory in various stages of development.

* A $5 million construction loan for the ground up construction of a six-story plus penthouse, mixed-use apartment building and new restaurant, Caffe Napoli, located at 180 Hester Street in New York city.

* A $5 million mezzanine loan for a new luxury condominium development, The Vista at Fleetwood. This 11-story building is comprised of 70 one- and two-bedroom residential condominiums will be the largest residential condominium development in Mt. Vernon, New York.

* A $4 million loan to CMB Additives, LLC to acquire 100 percent of the Choline Chloride manufacturing facilities and operations of Bioproducts, Inc., a wholly owned subsidiary of Mitsui & Co. (U.S.A.), Inc.

* A $3.5 million loan to Schmidt and Farrow Investments, LLC. Schmidt and Farrow Investments intend to use the loan as working capital for various investments.