Kettler Announces Joint Venture with Cypress Equities, Affiliate of Staubach Retail, to Build the Village of Leesburg

Business Wire, Nov 16, 2006

Cypress to Focus on Retail in Village of Leesburg, Kettler Will Develop the Residential Community, Project Has Commitment from Wegmans

VIENNA, Va. -- Kettler, formerly KSI Services, Inc., one of the Washington area's leaders in diversified real estate development and property management, has announced plans to create a joint venture with Cypress Equities, an affiliate of Staubach Retail, to develop The Village at Leesburg.

As part of the joint venture, Cypress Equities will develop the retail portion of the Village Center, home to a mix of buildings that are attracting prominent upscale restaurants and national retailers including Wegmans. When completed, the Village Center is anticipated to include 464,000 square feet of retail and restaurant and 200,000 square feet of office. Kettler will develop the residential components of the project including 350 condominiums and apartments as well as a 300-home active adult residential community. They will also oversee development of 300,000 square feet stand-alone office and a hotel and conference center.

"This joint venture is the right move for both Kettler and Cypress Equities," said Robert C. Kettler, founder and chairman of Kettler. We are looking forward to working side by side with Cypress. Their experience of bringing urban design to the suburbs is greatly appealing to our development philosophy."

The Village of Leesburg was approved for a plan amendment and rezoning in May of 2006. Plans include construction of two new roads called for in the Leesburg Town Plan, Crosstrail Boulevard and Russell Branch Parkway, as well as a new interchange which will start in late 2006. Site work and vertical construction for the Village at Leesburg is expected to start in spring 2007.

"We are proud and excited to be working with Kettler on The Village of Leesburg," said Chairman and CEO of The Staubach Company, Roger Staubach. "With the retail expertise of Staubach Retail, the development prowess of Cypress Equities and the residential experience of Kettler, we expect this to be one of the finest mixed-use projects on the East Coast."

Founded in 1758, the Town of Leesburg, Virginia today boasts nearly 30,000 residents. The Kettler/Cypress mixed-use development, incorporating office, retail, restaurants, hotel and conference center, multifamily housing and an active adult residential community will bring a new focus to the community as well as highlighting its historic heritage. The project will continue the strong history that Leesburg has of being a destination location. In addition to enjoying its rich history, people will be able to live, work and play in this new environment.

About Kettler

Based in Northern Virginia, Kettler (formerly KSI Services, Inc.) is a leading developer of award-winning, mixed-use residential and commercial properties across the Washington Metropolitan area. In 2006, Kettler was named one of the area's largest private companies by the Washington Business Journal and is one of the nation's top 20 multifamily developers. Kettler has developed more than five million square feet of commercial space and more than 50,000 homes. Current projects include urban and transit-oriented developments, multifamily housing, commercial and mixed-use developments and resort communities. Robert C. Kettler, a third-generation builder and developer, founded Kettler in 1977.

About Cypress Equities

Formed in 1995, Cypress Equities is the acquisition and development affiliate of The Staubach Group. Cypress Equities focuses on projects ranging in scope from mid-sized (15,000 square feet or larger) to large-scale (1,000,000 square feet or larger) retail centers. With development offices in Dallas, Atlanta, New York, Phoenix and San Francisco, it is an independent company with a dedicated staff that focuses on retail, resort and hospitality development, portfolio acquisitions, build-to-suits, sale-leasebacks and other development services for retail, mixed-use and automotive properties.

About Staubach Retail

A part of The Staubach Company, Staubach Retail provides a full range of services including consulting, brokerage, development, capital solutions, and full real estate outsourcing to both owners and users of retail real estate. In addition, Staubach Retail has specialty focus in the areas of automotive, service and convenience, restaurant and entertainment, anchor and junior anchor, food and drug, and fashion and lifestyle retailers. With the largest staff of retail real estate professionals in the country, Staubach Retail combines national coverage with local expertise to give clients a competitive edge in the retail arena.