Baltimore, MD (July 8, 2008) - Alex. Brown Realty, Inc. (ABR), a national real estate investment company, has entered into a joint venture with Oakland, California-based Horizon Management Group to acquire the

Fiesta Garden Apartments, an apartment complex in Oakland, California. ABR Chesapeake Fund III, a value-added real estate investment fund sponsored by ABR, provided an equity commitment of $2.3 million to the venture. Nathan Prouty of NorthMarq Capital arranged the debt and equity capital for the transaction.

Fiesta Gardens is a 54-unit gated complex that includes 11 two-and three-story buildings clustered around an interior courtyard. Located in Oakland’s East Bay submarket, the complex is approximately 2.5 miles from the Fruitvale Bay Area Rapid Transit (BART) station and within easy access to the major highways linking Oakland to San Francisco and Berkeley.

“We’re impressed by the strength of Oakland’s apartment market -- it’s seen a steady recovery since the tech bubble burst earlier this decade,” commented Don Brenneman, ABR’s acquisition officer responsible for sourcing the deal. “Given the significant barriers to entry in urban infill locations like Oakland, it’s unlikely that new product will be added in the near future. Limits on new supply, when combined with the projected modest population growth, should continue to reduce overall vacancy and drive rental rates up,” added Brenneman. According to REIS, rental rates in the Oakland apartment market are expected to see average annual increases of 4.1% over the next five years.

The joint venture intends to complete the interior and exterior renovation program initiated by the previous owner and subsequently bring rents in line with current market conditions. “The previous owner made approximately $850,000 in improvements and we expect to invest an additional $420,000 in interior upgrades and $280,000 in exterior capital improvements,” commented Dan Lieberman, Horizon’s founder and CEO. “Improvements on the vacant units are already underway and we expect to reach stabilized occupancy within the year.”

This is the first venture between ABR and Horizon. "Our investment strategy revolves around finding good local partners who know their markets," commented John Prugh, ABR's president and CEO. "Horizon has more than 20 years of experience working in the Oakland market and we look forward to leveraging its knowledge and talent to generate a strong return to our investors."

Alex. Brown Realty, Inc. (ABR) is a privately owned real estate investment manager organized in 1972 and headquartered in Baltimore, Maryland. ABR co-invests with joint venture partners in a broad spectrum of property types located throughout the United States. www.abrealty.com

Horizon Management Group (Horizon) Horizon Management Group is a regional real estate management, development and investment company founded in 1994 by Dan Lieberman. Horizon has an outstanding track record for innovative redevelopment and effective management of apartment communities in northern California. www.renthorizon.com

NorthMarq Capital (NorthMarq) provides a full range of services for commercial real estate owners, occupiers, and investors. Its services include brokerage, property management, construction management, and industry-leading capital market solutions. NorthMarq provides services through four primary business lines: NorthMarq Capital, Real Estate Services, Investment Services, and Corporate Solutions. www.northmarq.com