McKinley Appointed Receiver by United States District Court for the Southern District of Texas

August 17, 2011

Ann Arbor, MI McKinleys Residential Client Services team is pleased to announce that it has been appointed Receiver for a 14 asset multifamily portfolio spanning over 6 states. This 3,709 unit portfolio includes 7 assets in Texas which marks McKinleys first expansion into the Texas market. This appointment is also is one of the five largest multifamily assignments in the CMBS market in 2011.

This receivership appointment is a testimony to the expertise and value creation that McKinley offers, said Albert M. Berriz, Chief Executive Officer of McKinley. We have become the go-to company for distressed assets based not only our great track record of repositioning distressed assets, but our ability to revitalize apartment communities in an extremely timely manner. We are gratified by the confidence of the Court and the market in our abilities, and for the opportunity that this transaction provides for our team. The complexities inherent in this assignment create many challenges but also provide the most potential for improvement. We are excited about enriching the quality of life in these communities and we expect a successful outcome for all of the stakeholders in this deal."

This appointment represents the 107th court appointment of McKinley to workout distressed real estate since the beginning of the financial crisis.

About McKinley

Founded in 1968 and headquartered in Ann Arbor, McKinley is a leading owner and manager of multifamily real estate. Currently ranked #38 in the NMHC Top 50 list of national apartment management companies, McKinley owns and manages more than 33,000 units throughout 20 states. McKinley specializes in solving complex real estate problems for its own portfolio, as well as a select clientele of institutional investors, private equity clients and special servicers. McKinley is a member of the National Housing Council (NMHC) and is recognized by the Institute of Real Estate Management (IREM) as an Accredited Management Organization (AMO).

For more information on McKinley's Residential Client Services, please contact Kenneth P. Polsinelli, Chief Real Estate Officer at 734-769-8520 x230.