October 1, 2003

Cobalt Capital Partners Acquires 15 Building Suburban Philadelphia Industrial Portfolio

IRVING, TX – Cobalt Capital Partners, L.P., a partnership together with USAA Real Estate Company, has acquired 15 office/warehouse buildings in the Mid-Atlantic Corporate Center in West Deptford, N.J. The properties total 931,182 sq. ft., range in size from 20,000 to 180,000 square feet and are currently 93% leased. Cobalt Capital Partners, a Dallas-based private equity firm, is an active buyer of light industrial and other commercial properties in major markets throughout the U.S.

“The acquisition of Mid-Atlantic represents our initial investment in the Philadelphia metropolitan area, a market in which we hope to significantly expand our presence,” said Lewis D. Friedland, Cobalt’s Managing Partner. “This portfolio fits within the property criteria we are targeting; the project is located in one of Southern New Jersey’s strongest industrial corridors, the portfolio contains a diverse portfolio of national, regional and local tenants, and a variety of building sizes and configurations allows for future leasing flexibility.”

Cobalt Capital Partners is a real estate private equity firm based in Dallas. The firm invests in light industrial and suburban office properties nationally.

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