Madison Marquette's Bay Street Project in Emeryville, CA Now 85% Leased; First Phase Of Mixed-use Urban Village Set To Open November 7.

Business Editors/Real Estate and Retail Writers

EMERYVILLE, Calif.--(BUSINESS WIRE)--Sept. 24, 2002

Bay Street, the 20-acre urban village currently under construction in Emeryville, CA, today announced the addition of several new tenants including Coach, Apple Computer, Abercrombie & Fitch, Cingular Wireless and Fuddruckers, surpassing the 85% leased level.

These new additions will join the previously announced tenant lineup which includes a 16-screen AMC Theater, a 32,000 square foot Barnes & Noble, Williams-Sonoma, Pottery Barn, Pottery Barn Kids, Talbots, Ann Taylor Loft, J. Jill, Chico's, Banana Republic, Express, Coach, Victoria's Secret, Gap, Old Navy, Reference Clothing Co., Body Shop, AT&T, Franklin Covey, Aaron Brothers, Sunshade, Bath & Body Works, Sunglass Hut, Godiva, Magnolia Hi-Fi, Aerosoles, Cold Stone Creamery and Hot Cups. Several restaurants are also set to open including California Pizza Kitchen, Buckhorn, Pasta Pomodoro, Rubio's Baja Grill, Zao Noodle Bar, Asqew Grill, MacArthur Park and Prego.

"We are extremely pleased with how successful our leasing efforts have been on this project to date, especially considering the current downturn in the economy," said Eric Hohmann, vice president of development for Madison Marquette. "As of today, Bay Street is more than 85% leased and we expect to be fully leased by the end of this year. We are also quite pleased with the variety and quality of national and local retailers and restaurants we have secured for the project."

"The site is situated at the I-80 and I-580 interchange, one of the Bay Area's busiest intersections providing great visibility, which has been a big draw for potential tenants," added Hohmann. "Ideally located next to IKEA at the foot of the San Francisco/Oakland Bay Bridge, more than 260,000 cars pass the site daily."

Once complete, Bay Street will include retail, residential, restaurant, hotel and entertainment offerings designed to serve as a gathering place for East Bay residents and visitors. Bay Street will feature more than 65 shops, nine indoor/outdoor restaurants and a 16-screen AMC Theater as well as 284 apartments, 80 townhouses and a 250-room hotel. The project comprises three city blocks connected by Bay Street, a traditional main street. Bay Street's distinct buildings, plazas, tree-lined sidewalks and terraces will establish a congenial atmosphere ideal for dining, shopping and meeting friends.

The retail portion will serve as the foundation for the residential units, which will be located above the retail. Construction on the housing component is underway with the first phase of units available in summer 2003.

"Bay Street is a prime example of 'smart-growth' -- mixing retail, entertainment, commercial and residential components to create a community while in-filling residential in high-density urban areas," said Emeryville City Manager John Flores. "Bay Street's 264 housing units will certainly help fulfill the city's current demand for more housing while the project's unique setting at a freeway crossroads with easy access to BART makes it an ideal location."

Madison Marquette, an affiliate of international investment firm Capital Guidance Corporation, oversees more than 24 million square feet of regional malls, specialty centers, community centers, urban villages and other retail and mixed-use properties throughout the United States. Headquartered in Washington, D.C., Madison Marquette maintains offices in San Francisco, Los Angeles and Irvine, California; Minneapolis, Cincinnati, Nashville and New York. For more information about Madison Marquette, please visit www.madisonmarquette.com.

California Urban Investment Partners, LLC is a venture formed by MacFarlane Urban Realty Company, an affiliate of MacFarlane Partners and the California Public Employees Retirement System (CalPERS), the nation's largest pension fund. Formed in 1995, CUIP was established to develop and invest in the development of urban properties like Bay Street. MacFarlane Partners is a leading real estate investment manager and developer. Prior to selling its advisory group to GE Capital in 1996, it was the largest minority owned real estate investment advisor in the country with over $2 billion in assets under management. The company currently has invested in or committed to invest in approximately $617 million in urban projects. CalPERS is the largest public pension fund in the country with over $150 billion in assets and over $9 billion in real estate investments or commitments.