$21 Million Forward Commitment Announced

Richmond, VA – June 6, 2003: Richmond-based John B. Levy & Company, Inc. is pleased to announce today a $21,000,000 forward commitment by a major pension fund to provide permanent takeout financing on behalf of New Apartments, LLC, whose sole managing member is JRJG, Inc. The financing provides for the development of the Estates at Horsepen, luxury townhouse apartments located in Richmond, Virginia. The property will be financed with a permanent mortgage having a 10-year term that amortizes over 25 years.

The Estates at Horsepen, currently under construction, has a fantastic location adjacent to the new Philip Morris headquarters building in Richmond’s West End. The general area is described as the Glenside Interchange and is a major employment center with approximately two million square feet of class A office space within a five-minute drive of the property. The project includes 257 one, two and three-bedroom luxury townhouse apartments units, a 5,700 square foot clubhouse that features an exercise facility, business center, kitchen/bar area and a multimedia room, as well as a resort-style pool.

“There are two key elements which will ensure the success of this project, the forward commitment for financing, and the location of the site – which you cannot beat,” said John B. Levy, president, John B. Levy & Co. “Rates are at a 45 year low, but there is no guarantee that they will stay at this level. We structured a forward commitment, which secures the rate over the long term, guaranteeing them a lower payment as rates rise, which we know they will do,” said Levy.

John B. Levy & Company, Inc. is a real estate investment-banking firm founded in 1995 and headquartered in Richmond, Virginia. The firm raises equity or debt for developers and owners of commercial and multi-family projects nationwide. The firm has structured over $1 billion in financing. Despite a tumultuous economic environment over the past several months, the firm has successfully closed a number of transactions, each with its own property specific challenges. Representative transactions include: $16,500,000 in financing for a newly-rehabbed student housing project adjacent to North Carolina A&T; a $10 million non-recourse rehabilitation loan for a speculative office property in downtown Richmond; a $7.4 million acquisition/ rehab loan for a multifamily project in Durham, North Carolina (closed in 20 days) and an office building in Orlando, Florida, a market that has faced significant vacancies over the past 18 months.

Contact Andrew R. Little, 804-644-2000, ext. 260, for more information.

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