January 3, 2005

Cobalt Capital Partners forms private industrial REIT

Irving, TX – Cobalt Capital Partners, L.P. has formed a private REIT to continue its light industrial investment program. The REIT’s investor group will be primarily comprised of institutional investors, including USAA Real Estate Company and members of Cobalt’s management team. The REIT’s first closing included equity commitments exceeding $100 million.

“We are excited about the prospect of continuing our growth through this new entity,” said Lewis D. Friedland, Cobalt’s Managing Partner. “Many of our investors are active buyers of bulk industrial properties. Cobalt will provide them with exposure to the light industrial sector, a product type that we believe offers tremendous opportunities for profitable acquisitions.”

Cobalt Capital Partners, a Dallas-based private equity firm, acquires, manages and develops light industrial properties in major metropolitan markets throughout the United States.

USAA Real Estate Company has approximately $3.2 billion in assets under management and provides acquisition, build-to-suit and development services for corporate and institutional investors. The USAA portfolio consists of office, industrial and hotel properties as well as investments in real estate operating companies.

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