January 05, 2011

URDANG, Falcon Southwest Announce Acquisition of Texas Apartments

BNY Mellon Investment Manager and Falcon Southwest See Opportunity to Add Value to Class A Multifamily Property in San Marcos

PLYMOUTH MEETING, PA, January 5, 2011 — URDANG, the real estate investment manager and part of BNY Mellon Asset Management, and its joint venture partner Falcon Southwest have announced the acquisition of The Palazzo, a 300-unit Class A multifamily community in San Marcos, Texas, approximately 30 miles south of Austin.

URDANG made its portion of the acquisition through Urdang Value-Added Fund II L.P. (Fund II), a closed-end private real estate fund managed by Urdang Capital Management, Inc. The property was purchased from a private seller on a direct basis as the property was not broadly marketed for sale. Terms of the transaction were not disclosed.

The Palazzo, located at 1011 Wonder World Drive, is a Class A multifamily community featuring a low density layout, a best-in-class amenity package and Italian-themed architecture. The property is visible from Interstate 35 and Wonder World Drive. The Palazzo, centrally located within San Marcos, is near major employment centers including Texas State University, Central Texas Medical Center, Tanger Outlet Center and San Marcos Premium Outlets. The joint venture partnership will focus on improving property operations, addressing deferred maintenance, and implementing a moderate renovation program.

"Our partner's local market knowledge and ability to secure the property directly enabled us to acquire a quality asset at an attractive cost with the ability to create additional value," said Jeff Reder, senior vice president, Urdang Capital Management. "The architecture, amenities and location distinguish The Palazzo as a premium property that provides it with a competitive advantage in this region."

"We have been studying San Marcos over the last several years and believe now is the time to invest in this market as we believe it is poised to recover." said Phil Capron, chairman, Falcon Southwest. "The combination of URDANG's reputation, available capital through Fund II, and Falcon Southwest's track record and experience enabled us to secure this very attractive investment opportunity. In today's challenging economic environment, the team was able to obtain attractive debt quickly to accomplish the year-end closing desired by the seller."

Falcon Southwest is a dynamic, entrepreneurial real estate investment firm dedicated to earning high, risk-adjusted returns through value-added acquisition and repositioning opportunities. The company's investment strategy emphasizes direct acquisitions or recapitalizations of office, industrial and multifamily properties. Primary target markets are located throughout the Southwestern United States and include Phoenix, Houston, Dallas-Fort Worth, Austin and San Antonio.

Founded in 1987 with an exclusive focus on institutional investment grade real estate, URDANG offers a variety of strategies and products, managing approximately $1.9 billion in public real estate securities through Urdang Securities Management, Inc. and approximately $1.7 billion in debt and private equity real estate investments through Urdang Capital Management, Inc. for institutional investors and high net worth individuals throughout global markets and across public and private capital sectors. URDANG's research-driven process combines top down economic analysis and market/country selection with bottom up underwriting of properties, companies and management teams to seek high, risk-adjusted returns. It is one of the investment boutiques of BNY Mellon Asset Management.

BNY Mellon Asset Management is the umbrella organization for BNY Mellon's affiliated investment management firms and global distribution companies.

BNY Mellon is a global financial services company focused on helping clients manage and service their financial assets, operating in 36 countries and serving more than 100 markets. BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing superior asset management and wealth management, asset servicing, issuer services, clearing services and treasury services through a worldwide client-focused team. It has $24.4 trillion in assets under custody and administration and $1.14 trillion in assets under management, services $12.0 trillion in outstanding debt and processes global payments averaging $1.6 trillion per day. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation. Additional information is available at www.bnymellon.com.

All information source BNY Mellon Asset Management as of September 30, 2010. This press release is qualified for issuance in the US only and is for information purposes only. It does not constitute an offer or solicitation of securities or investment services or an endorsement thereof in any jurisdiction or in any circumstance in which such offer or solicitation is unlawful or not authorized. This press release is issued by BNY Mellon Asset Management to members of the financial press and media and the information contained herein should not be construed as investment advice. Past performance is not a guide to future performance.
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