Northland Investment Corporation Closes On $90 Million Mortgage Refinancing for 11 Properties in Southeast

Business Wire, July 1, 2002

Business Editors

Northland Investment Corporation, a leading privately held real estate investment, management and development company, today announced that it has closed on the refinancing of a $90.4 million mortgage on eleven properties in the Company's Southern Tier Portfolio.

The loan was structured and financed by The Citigroup Private Bank and Salomon Brothers Realty Corp. and is payable over a 10-year term at a fixed rate of 7.39%. The maturing first mortgage loans from Lehman Brothers and John Hancock were paid off in conjunction with this financing.

Said Lawrence R. Gottesdiener, the Company's chairman and chief executive officer, "The successful completion of this complex financing - which represents the culmination of our value added business plan implemented in 1994 - showcases Northland's ability to balance capitalization, finance growth and reduce our cost of capital."

Noting the Company's significant presence in commercial and multifamily real estate across the United States, Gottesdiener continued, "The Southern Tier Portfolio comprises a range of well-maintained, Class B assets in solid markets. We remain committed to these markets and will continue to pursue our expansion in key locations throughout the country."

Northland's Southern Tier Portfolio consists of 11 properties, totaling 2,756 apartment units in Texas, Florida and North Carolina. The Properties were purchased in 1994 from John Hancock.

About Northland Investment Corporation

Founded in 1970, Northland Investment Corporation specializes in the acquisition, development, operation and long-term ownership of commercial, retail and multifamily real estate throughout the United States. Northland owns a $1 billion diversified portfolio comprised of more than 13 million square feet of real estate overall, with major concentrations in New England and along the southern tier of the United States.