Broadway Partners and Investcorp Sell Second Office Property in Suburban New York Office Portfolio

NEW YORK, Aug. 11 /PRNewswire/ -- Broadway Real Estate Partners, a national private real estate investment and management firm based in New York, and Investcorp, a global investment group whose real estate team is based in New York, today announced the sale of 1979 Marcus Avenue, a 348,000-square- foot Class A office complex located in Lake Success, New York (Long Island).

Broadway Partners initially acquired 1979 Marcus Avenue in 2001. In 2004, Investcorp purchased a 50% equity stake in a three-asset, one million-square- foot suburban New York office portfolio, as part of its recapitalization by Broadway. Today's announcement follows shortly after the sale of Three Huntington Quadrangle in Huntington, New York (Long Island) - the first sale from this three-asset portfolio - announced on July 26, 2005. Currently, the third, and final asset in this portfolio, the Saxon Woods Corporate Center, a 236,000-square-foot office complex in Westchester County, New York, is also being marketed for sale.

Significant leasing accomplishments for the partners over the approximately two-year holding period included the renewal of IPRO, the building's largest tenant, along with the several new leases with Raytel, Flushing Savings Bank, Sonomed, New World Funding, and others. Upon the time of sale, the property was 95% occupied.

Broadway Real Estate Partners has served as the complex's asset manager and property manager. CB Richard Ellis served as the property's leasing agent, and the Metropolitan Area Capital Markets Group of Cushman & Wakefield represented Investcorp and Broadway in this sale transaction.

Peter Petron, a principal with Investcorp, said, "With two highly successful sales achieved in the portfolio we share with Broadway, we have generated strong returns for our investors. We are delighted with the leasing and financial accomplishments of our joint venture with Broadway to date and we are optimistic about our prospects going forward."

Jonathon Yormak, COO of Broadway Partners, added, "As with the sale of our Three Huntington Quadrangle property, this successful transaction is based on the achievement of our investment objectives with this particular asset. We are proud that we were able to fully execute our value-added strategy and that our efforts led to strong asset appreciation. The sale of these assets has enabled us to achieve our foremost goal of delivering superior yields to our private and institutional investors."

About Investcorp

Investcorp's New York-based team of real estate professionals focuses on high-quality existing commercial, hotel and residential properties with strong cash flow and attractive potential for medium-term capital gains as well as a growing number of opportunistic investments. The team oversees a portfolio with a current value of more than $1.5 billion in selected urban and suburban markets in the U.S. Over the past ten years, Investcorp has concentrated its property investments in sector-specific real estate portfolios including office, retail, hotel, industrial, and residential properties. The 1979 Marcus Avenue transaction is Investcorp's 15th property sale of 2005. Including this transaction, Investcorp has generated sales volume of over $1.0 billion so far this year and in the process has returned more than $265 million in equity to its investors.

In addition to investing in real estate, Investcorp focuses on corporate investments, asset management and technology investments. Since it was established in 1982, the firm has completed transactions with an aggregate value of approximately $25 billion. Additional information on Investcorp may be found at http://www.investcorp.com/.

About Broadway Real Estate Partners, LLC

Founded in 1999, Broadway Real Estate Partners, LLC is a private real estate investment and management firm headquartered in New York. Its partners represent a cross section of domestic and international private and institutional investors. The firm invests in high quality office properties in select markets nationwide. Since 2000, Broadway Partners has purchased approximately 5 million square feet of office space with a value in excess of $1.4 billion.

For more information, contact Charles Millard at Broadway Partners' New York headquarters at 212.810.4023 or visit http://www.bwaypartners.com/.

   Broadway Media Contact:
   Beckerman Public Relations
   Stephanie Singer
   (908) 781-6420
   stephanie@beckermanpr.com

   Investcorp Media Contact:
   Joseph Kuo/Todd Fogarty
   Kekst and Company
   212-521-4800
   joe-kuo@kekst.com
   todd-fogarty@kekst.com