SAN ANTONIO – USAA Real Estate Company and Lewis D. Friedland have formed Cobalt Capital Partners, L.P., a new real estate private equity firm. Cobalt was formed to achieve attractive financial returns for its co-investors by capitalizing on current real estate market opportunities.

Cobalt’s investment strategy will be national in scope, but concentrated in the top tier markets. Initially the firm’s product focus will include the light industrial and suburban office sectors. Cobalt’s operating strategy will include direct management of owned assets, leveraging the expertise of its principals. In addition, the firm will employ partnership and other venture arrangements with local operating relationships.

"We look forward to continuing our relationship with Lew as he has been so successful in past endeavors by enhancing returns to his investors,” said T. Patrick Duncan, senior vice president of real estate operations and investment for USAA Real Estate. “The opportunities Lew is focusing on will complement the core real estate portfolios of USAA and our other investors."

Friedland has more than seventeen years of experience in the commercial real estate investment, development and operations areas. Prior to forming Cobalt, he served initially as the chief investment officer, then chief operating officer, of American Industrial Properties, a New York Stock Exchange listed real estate investment trust. From 1997 to 2001, Friedland directed the growth of American Industrial’s portfolio to $650 million in assets from $70 million until the trust was sold last year. From 1992 until 1996, Friedland formed and managed Crimson Partners, a private real estate investment and development firm with operations in Virginia, Maryland and Florida. Prior to forming Crimson, Friedland was a division partner and managing director with Trammell Crow Company in Virginia.

He received his MBA degree from the Harvard Business School and a bachelor of science degree from the Wharton School of the University of Pennsylvania.

Cobalt is based in Irving, Texas. USAA Real Estate Company is based in San Antonio and operates through 14 regional offices. It has more than $2.7 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 more information on USAA Real Estate Company, visit www.usaarealco.com.

USAA, the parent company of USAA Real Estate Company, has been serving military families since 1922 and has become one of America's leading insurance and financial services companies. The association, well known for its exceptional service, offers its 4.8 million members a comprehensive range of insurance, banking and investment products and services designed to help them meet their financial needs. Headquartered in San Antonio with offices throughout the United States and Europe, USAA owns or manages assets of more than $64 billion.