MARCH 17, 2015

ASB Real Estate Investments Acquires Williamsburg Retail Portfolio for $86 Million; Plans $38 Million Redevelopment with Partner L3 Capital

Brooklyn—March 17, 2015—ASB Real Estate Investments announced today the $86 million acquisition of 12 buildings and four land parcels in the heart of Williamsburg in a joint venture with L3 Capital, LLC. The purchase from a family estate was made by ASB on behalf of its Allegiance Fund, a $5 billion core investment vehicle. Aligning with ASB’s urban high‐street retail strategy and taking advantage of the neighborhood’s attractiveness as an emerging shopping and nightlife destination, the partnership intends to invest an additional $38 million to redevelop the ground floor retail space in the buildings and construct new retail space on the vacant lots.

With prime retail frontage on North 6th and 7th Streets between Berry Street, Wythe Avenue, and Kent Avenue in a fast developing shopping corridor near the Bedford Avenue subway station, the portfolio consists of one‐ to four‐story brick buildings, totaling approximately 64,000 square feet of space. Most of the buildings also have upper‐floor apartments. The preliminary development and redevelopment plans would increase the size of the portfolio by an additional 12,000 square feet.

“Williamsburg has rapidly evolved into one of New York’s most attractive neighborhoods—it’s not only a prominent area that attracts artists, musicians, designers, and young professionals, but it is also a burgeoning tourist destination,” said Brodie Ruland, Senior Vice President responsible for the New York area at ASB Real Estate Investments. “Williamsburg’s rise in popularity has made retailers realize that they need to tap into the demand and excitement created by significant residential development, new restaurants and entertainment venues. We see this acquisition as a way to help shape the retail landscape in the neighborhood.”

The properties involved in the transaction include: 81, 83, 85, 87, 89, and 91 N. 6th Street; 104, 106, and 108 N. 7th Street; 111, 113, and 115 N. 6th St; 130 Berry St.; 129 and 131 Kent Avenue; and 168‐170 Wythe Ave.

With this investment, ASB’s urban high‐street retail portfolio exceeds $1 billion and includes many international retailers and high‐fashion brands including Ralph Lauren, Fendi, Patagonia, Urban Outfitters, Forever 21, Barneys and Rag & Bone.

ASB’s portfolio in New York City features 10 investments valued at approximately $900 million, including office, residential and high‐street retail assets in SoHo, the Meatpacking District, Brooklyn, Chelsea, and the Financial District. The company focuses its overall investment activity on major U.S. cities including Washington DC, Boston, Chicago, San Francisco, Los Angeles, Miami and Denver.

This marks the firm’s third joint venture with L3 Capital. In 2012, they jointly acquired 72‐76 Greene Street, a five‐story mixed‐use property in SoHo, and in 2014, acquired 120 N. 6th Street, a two‐story retail building in Williamsburg.

About ASB Real Estate Investments
ASB Real Estate Investments (ASB), a division of ASB Capital Management, LLC, is a leading U.S. real estate investment management firm, managing $5.7 billion* in gross assets under management for over 300 institutional clients. Headquartered in Washington DC, ASB invests in major urban markets across the country, concentrating in office, multifamily, retail and industrial properties. ASB manages the ASB Allegiance Real Estate Fund, its sole vehicle for core investing; the ASB Meridian Real Estate Fund, a lowleverage value creation vehicle; and a development separate account.

About L3 Capital
L3 Capital is a best‐in‐class boutique prime urban retail real estate investment firm that targets institutional quality core‐plus and value‐add urban retail investments within first tier metropolitan markets. Headquartered in Chicago IL, L3 invests in major urban markets across the country, concentrating in retail and mixed‐use properties.

* as of December 31, 2014

The information provided in the release does not constitute an offer to sell or buy securities or the solicitation of an offer to sell or buy securities.