PGP Partners Begins Construction on Ontario Airport Towers

Orange County Business Journal, Sep 3-Sep 9, 2007

150,000 SF of Office and 10,000 SF of Retail Make Up the First Phase of What Will Be the Largest Class A Office Park in the Inland Empire

PGP Partners, Inc., a diversified commercial real estate investment and development firm based in Lake Forest, California, along with its partner, the North America division of RREEF Real Estate, a part of RREEF Alternative Investments, the global alternative investment management business of Deutsche Bank's Asset Management division, announced the official groundbreaking for one of the largest and most anticipated new office developments in the Inland Empire. When completed, Ontario Airport Towers will be a 25.2 acre master planned, Class "A" retail office project.

Inland Empire's largest Class "A" development

Ontario Airport Towers will be built in three phases and will include approximately 850,000 square feet of office space, making it the largest, multi-tower, Class "A" office building development within the Inland Empire. As part of the first phase of the project, which began construction last week, PGP will build the first six-story steel frame office building totaling 150,000 square feet and two retail buildings representing 10,000 square feet. Phase One is expected to be complete in the Fourth Quarter of 2008. This Class "A" office project is strategically located along the San Bernardino (1-10) Freeway at Archibald and Turner Avenue, allowing for maximum freeway visibility and access.

Tenant interest is gaining momentum

Ontario Airport Towers has already generated a tremendous amount of interest from corporate tenants from throughout Southern California looking for Class "A" space," said Natalie Bazarevitsch of CB Richard Ellis who is leasing the project on behalf of PGP & RREEF, along with CBRE's Taylor lng, Michael Day and David Waggoner. "The start of construction is clearly a significant milestone and we expect to see a lot of momentum generated in the next several weeks and months as the promise of this project becomes reality."

Road expansion eases access

The expansion of Guasti Road, tying Archibald Avenue to the balance of Centrelake, is expected to further increase the project's market appeal, providing easier access to and from the site, as well as to the LA/Ontario Airport which is just minutes from the project, and to the Ontario/Rancho Cucamonga area's major retail centers.

"Ontario Airport Towers will be one of the premier office locations, not only in Ontario, but in all of Southern California," said Ontario Mayor Paul Leon.

Ample parking, amenities

Ontario Airport Towers will offer space ranging from 1,500 to 100,000 square feet, with efficient and flexible floor plates. In addition, with its 5:1,000 parking ratio, Ontario Airport Towers can accommodate a variety of uses from corporate office, administration, sales and back office for tenants needing small, mid-sized or multi-floor office space.

The mixed-use project will be lushly landscaped, incorporating pedestrian-friendly walkways and courtyards that connect the office buildings and retail shops.

"We designed Ontario Airport Towers to be the preeminent office park in the Inland Empire, and one that rivals any Class "A" park in Orange County or Los Angeles," said J. R. Wetzel of PGP Partners. "We believe that the Inland Empire office market is ready for this kind of sophisticated development, particularly in the area surrounding the LA/Ontario International Airport."

For more information about PGP Partners, Inc., please contact Mrs. Kelly Stassel via email at kstassel@pgppartnersinc.com. For more Ontario Airport Towers project information, visit the website at www.OntarioAirportTowers.com.

About PGP Partners, Inc.

PGP Partners, founded in 2000, is a real estate investment, development and management company based in Lake Forest. During the past several years, PGP Partners has successfully completed or is building more than 2.6 million square feet of new development valued at approximately $235 million. The company focuses its development and investment efforts on industrial and suburban office product in major west coast metropolitan areas, with an emphasis on Southern California.

PGP Partners is also developing two other speculative projects with RREEF valued at approximately $30 million. During the past 24 months PGP Partners has purchased and/or sold over $60 million of its own investments. Currently PGP has purchased land for development and existing buildings for repositioning with a total stabilized value over $130 million.

About RREEF

RREEF Real Estate acquires and manages investments in commercial and residential property, and real estate securities on behalf of its institutional and private clients worldwide. Its product offering is global and comprehensive, including core, value-enhanced and high yield property investments as well as investments in publicly traded real estate securities. RREEF Real Estate has more than $77.2 billion in assets under management worldwide as of June 30, 2007.

RREEF Real Estate is part of RREEF Alternative Investments, the global alternative investment management business of Deutsche Bank's Asset Management division. RREEF Alternative Investments consists of four businesses: Real Estate, Infrastructure, Private Equity and Hedge Funds. Headquartered in New York, RREEF Alternative Investments employs more than 1.400 investment professionals in 15 cities around the world to help investors meet a wide range of objectives - from diversification, to preservation of capital, to long-term performance. Named the world's largest alternative investments manager in Global Investor/Watson Wyatt's Alternative Survey, June 2007, RREEF has $89 billion in assets under management worldwide as of 30 June 2007.