September 1, 2006

Cobalt Capital Partners expands in Dallas

Irving, TX – Cobalt Capital Partners, L.P., through its Cobalt Industrial REIT affiliate, has acquired a 3,325,517 square foot, nineteen building portfolio located in Dallas, Kansas City and St. Louis. This acquisition more than doubles Cobalt’s Dallas portfolio to over 2.8 million square feet and is Cobalt’s initial entry into the Kansas City and St. Louis markets. The portfolio is comprised of nineteen properties consisting of both multi-tenant and single-tenant buildings and was 98% leased to 79 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 10.5 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