American Realty Advisors Hires Director Within Its Asset Management Team

Market Wire, September, 2008

American Realty Advisors is pleased to announce that Brian Lantz has joined the firm as Director, Asset Management for the Midwest and Northeast regions. American welcomes Mr. Lantz who will be based in its Chicago office. The addition of Mr. Lantz will enhance the depth and experience of American's asset management team as the firm's business and client base continues to expand.

Mr. Lantz brings to American an extensive track record spanning more than 26 years of real estate experience. Most recently, he served for 10 years as Executive Director at Morgan Stanley Real Estate Advisor, Inc., during which he was responsible for underwriting and closing capital transactions for a total of $2.1 billion and managing over 14.2 million square feet of commercial real estate with a combined value of $2.2 billion. Prior to joining Morgan Stanley, Mr. Lantz served as a Senior Consultant at Economic Research Associates and was a Manager at E&Y Kenneth Leventhal.

American's President and CEO, Stanley Iezman, commented, "We are pleased to add a professional of Brian's caliber to further expand the level of real estate expertise we provide to our clients. As the team leader in our Chicago office, we believe he will be an invaluable contributor while bringing with him a wealth of real estate and operational experience that will add value to our asset management resources."

American Realty Advisors, a California corporation, is an SEC-registered investment advisor under the Investment Advisers Act of 1940 and a leading provider of real estate investment management services to institutional investors. With more than $4.4 billion* in assets under management, American has provided innovative real estate solutions to institutional investors for over 20 years utilizing core and value-added commingled funds and separate accounts. The firm's portfolios include office, industrial, multi-family, retail and other properties nationwide. Information regarding American can be found online at www.americanreal.com .

Forward-Looking Statements: This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements are statements that do not represent historical facts and are based on our beliefs, assumptions made by us, and information currently available to us. Forward-looking statements in this press release are based on our current expectations as of the date of the release, which could change or not materialize as expected. Actual results may differ materially due to a variety of uncertainties and risk factors. Except as required by law, we assume no obligation to update any such forward-looking statements.

*Assets under management represent gross value of all assets and accounts managed by American as of June 30, 2008 (excluding partners' share of equity and partners' share of debt on partnership investments).

Contact: Joyce Ezaki 818/409-3280