May 22, 2006

Cobalt Capital Partners expands in Chicago

Irving, TX – Cobalt Capital Partners, L.P., through its Cobalt Industrial REIT affiliate, has acquired a 1,200,046 square foot, nine building portfolio located within five different submarkets throughout the Greater Chicagoland area.

The acquisition increases Cobalt’s Chicago portfolio to over 1.4 million square feet. The portfolio is comprised of nine buildings and is 84% leased to fifteen tenants providing leasing upside in the vacancy. The purchase of this portfolio provides for diversification into five separate submarkets within the greater Chicago industrial market.

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 6.5 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