December 5, 2006

Cobalt Capital Partners Expands in Philadelphia

Irving, TX – Cobalt Capital Partners, L.P., through its Cobalt Industrial REIT affiliate, has acquired Pedricktown Commons, a 237,504 square foot, three building portfolio located within the Gloucester County submarket of Philadelphia, PA. This acquisition increases Cobalt’s Philadelphia/New Jersey portfolio to over 2.1 million square feet. The portfolio is comprised of three multi-tenant buildings that are 63% leased to four quality tenants.

Cobalt Capital Partners, a Dallas-based private equity firm, acquires, manages and develops light industrial properties in major metropolitan markets throughout the United States. The Cobalt Industrial REIT is a private REIT advised by Cobalt Capital Partners. Across its national platform, the Cobalt Industrial REIT owns more than 11.5 million square feet of light industrial space.

For information on Cobalt Capital Partners or to submit an investment for review, please visit our website www.cobaltcapitalpartners.com or contact:

Lewis D. Friedland
Managing Partner
Cobalt Capital Partners, L.P.
5605 N. MacArthur Blvd., Suite 350, Irving, TX 75038
Tel: (972) 893-7000 Facsimile: (972) 893-7001
E-mail: lew.friedland@cobaltcapitalpartners.com