San Francisco, June 14, 2005 – Carmel Partners, Inc. announced today that its Carmel Partners Investment Fund I, L.P., (“Fund I”), has acquired six properties in two of its primary markets of Hawaii and southern California, including: the Barbers Point Portfolio, in Kapolei, Hawaii; Lafayette Parc Townhome Apartments in West Covina, California; the Arbors Apartments in Santa Ana, California; and the Aloha Surf Hotel in Honolulu. Fund I, which closed in November 2003, is now over 85% invested.

The Barbers Point Portfolio, Carmel’s most recent acquisition, consists of three properties: Orion Housing, Orion Park, and Makai. It is located on a former Naval Air Station, on the southwest side of Oahu. Carmel plans on spending $5 million to $8 million to renovate the 520 units. Carmel acquired the property for $79.5 million.

Lafayette Parc Townhome Apartments, built in 1964, is a 259-unit Los Angeles County apartment complex that caters to families. Carmel plans to spend $4 million upgrading the units. The company acquired Lafayette Parc for $40.45 million.

The Arbors Apartments is an Orange County garden-style complex built in 1969. Carmel acquired the Arbors for $18.5 million and plans to renovate the units and common areas.

The Aloha Surf Hotel, built in 1967, and located in Honolulu’s Waikiki District, has 202 rooms that Carmel recently converted into condominiums. Carmel invested approximately $2 million to renovate the common areas of the hotel. The property was acquired for $15.7 million.

“We are very excited about our recent transactions,” said Ron Zeff, Chief Executive Officer. “All of the properties are located in our core markets and possess strong real estate fundamentals and value-add opportunities.”

About Carmel Partners

Based in San Francisco, Carmel Partners is a private real estate investment firm, specializing in multifamily transactions within the United States. Founded in 1992 by Ron Zeff, Carmel Partners also maintains offices in Irvine, Denver, Seattle, Washington, D.C. and Honolulu.

Carmel Partners is currently pursuing value-add apartment properties, condo conversions, ground-up developments and joint venture deals in its core markets of northern and southern California, Seattle, Denver, Washington, D.C. and Hawaii. For more information regarding Carmel’s acquisition criteria, please contact Chris Beda, Chief Investment Officer at cbeda@carmelpartners.net.

Fund I is a $215 million discretionary equity fund used for the acquisition and renovation of residential properties. In the last 18 months, Fund I has acquired or is under contract to acquire over $750 million of assets. In April 2005, Carmel Partners closed its second discretionary institutional real estate investment fund, Carmel Partners Investment Fund II, L.P., (“Fund II”), with $400 million in equity commitments. It is projected that Fund II will consist of over $1.2 billion of assets.

Summary of Deals:

Contact: Owen Blicksilver
Owen Blicksilver Public Relations
516-742-5950

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