July 24, 2004

Cobalt Capital Partners Enters Atlanta Industrial Market

IRVING, TX – Cobalt Capital Partners, L.P., together with USAA Real Estate Company, has acquired a 172,478 square foot, two building industrial portfolio located in Atlanta, Georgia. This portfolio represents Cobalt’s initial entry into the Atlanta market and reflects the firm’s strategy to acquire well located light industrial properties in major markets throughout the United States.

“This acquisition represents Cobalt’s initial investment in the 500 million sq. ft. plus Atlanta industrial market,” said Lewis D. Friedland, Cobalt’s Managing Partner. “The buildings are located in the Fulton Industrial corridor, one of the largest and most active submarkets in Atlanta. We will continue to expand in Atlanta and other major industrial markets through the acquisition of similar properties that provide an opportunity to create value by applying our proactive asset management strategies.” Cobalt Capital Partners, a Dallas-based private equity firm invests in light industrial property in major metropolitan markets throughout the United States.

USAA Real Estate Company has approximately $3.0 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 1100, Irving, TX 75038
Tel: (972) 893-7000 Facsimile: (972) 893-7001
E-mail: lew.friedland@cobaltcapitalpartners.com