Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--July 31, 2003

Hearthstone, the largest institutional investor of residential developments in the nation, has committed another $21 million for two single-family home developments in South Florida, bringing to around $300 million

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--July 31, 2003

Hearthstone, the largest institutional investor of residential developments in the nation, has committed another $21 million for two single-family home developments

in South Florida, bringing to around $300 million the total invested in Florida homebuilding by the San Francisco-based firm during the last 18 months alone.

"Since 2001, Hearthstone has invested in the development of more than 10 communities in Florida, representing more than 1,600 homes," said Cindy Gilmore, corporate vice president. "Despite spotty national economic indicators, increasing demand for homes, combined with decreasing availability of developable land, have helped maintain South Florida's status as one of the hottest growth markets in America."

According to Gilmore, the investment firm has committed $12 million for Portofino by Crosswinds Communities in Fort Myers. It consists of 212 homes on nearly 60 acres situated west of 12580 Six Mile Cypress Parkway, north of Daniels Road, between Highways 41 and 75. Homes average 1,550 to 2,300 square feet, priced from the $200,000s; estimated "for sale" value: $43 million.

Hearthstone has also committed $9 million for Orchid Estates on Flagler by Sterling Communities, west of the Intracoastal Waterway in West Palm Beach. The luxury project will consist of 18 lots and one estate home on 5.5 acres on Palmetto between Flagler Drive and Olive. Lots average 12,500 square feet, with prices averaging $400,000. Home prices range from $800,000 to mid-$2 millions; estimated "for sale" value: $24 million.

"As developable land disappears, the movement toward infill and re-construction in Florida is growing," said Gilmore. "This means a strong market for 'tear-down' homes, the most desirable located in eastern neighborhoods, particularly between the Intracoastal Waterway and the Beaches. This is especially true north and east of Palm Beach County, a mature area where the market for luxury homes remains strong."

Since 1992, Hearthstone has committed $6.8 billion for 43,000 homes in 329 communities in 54 markets in 20 states. It provides investment capital from public and private pension plans, university endowments, Fortune 100 companies and large private trusts. In 2002, Hearthstone funded $1 billion for 5,604 homes in 60 developments in seven states.

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"Since 2001, Hearthstone has invested in the development of more than 10 communities in Florida, representing more than 1,600 homes," said Cindy Gilmore, corporate vice president. "Despite spotty national economic indicators, increasing demand for homes, combined with decreasing availability of developable land, have helped maintain South Florida's status as one of the hottest growth markets in America."

According to Gilmore, the investment firm has committed $12 million for Portofino by Crosswinds Communities in Fort Myers. It consists of 212 homes on nearly 60 acres situated west of 12580 Six Mile Cypress Parkway, north of Daniels Road, between Highways 41 and 75. Homes average 1,550 to 2,300 square feet, priced from the $200,000s; estimated "for sale" value: $43 million.

Hearthstone has also committed $9 million for Orchid Estates on Flagler by Sterling Communities, west of the Intracoastal Waterway in West Palm Beach. The luxury project will consist of 18 lots and one estate home on 5.5 acres on Palmetto between Flagler Drive and Olive. Lots average 12,500 square feet, with prices averaging $400,000. Home prices range from $800,000 to mid-$2 millions; estimated "for sale" value: $24 million.

"As developable land disappears, the movement toward infill and re-construction in Florida is growing," said Gilmore. "This means a strong market for 'tear-down' homes, the most desirable located in eastern neighborhoods, particularly between the Intracoastal Waterway and the Beaches. This is especially true north and east of Palm Beach County, a mature area where the market for luxury homes remains strong."

Since 1992, Hearthstone has committed $6.8 billion for 43,000 homes in 329 communities in 54 markets in 20 states. It provides investment capital from public and private pension plans, university endowments, Fortune 100 companies and large private trusts. In 2002, Hearthstone funded $1 billion for 5,604 homes in 60 developments in seven states.

Sterling Communities, one of South Florida's best known homebuilders, was founded in the mid-1990s. Crosswinds Communities, operating in five states, was founded during the early 1970s near Detroit.

NOTE: Photo available at: http://members.cox.net/davidkusumoto/ hearthstone-fort-myers-crosswinds-portofino.jpg