Evergreen Closes 1031 Exchange Purchase of University Fountains Apartments, Lubbock, TX.

PASADENA, Calif. -- Evergreen Realty Group, LLC today announced that it recently completed a private securities offering of $34,900,000 for a 228-unit garden apartment community designed for "Collegiate Living" in Lubbock, TX near Texas Tech University.

"The University Fountains Apartments is the tenth Evergreen securities offering in the past year under the 1031 Exchange private placement of securities provisions for off-campus living near major universities," according to Luke V. McCarthy, President and CEO.

We expect to be very active in this investment area with regional broker/dealers nationwide throughout 2006, McCarthy pointed out.

The University Fountains Apartments is a 683-bed security community located at 2202 Mac Davis Lane, Lubbock, TX 79401.

The garden apartments were completed in 2005 on approximately 12 acres and have 284,436 net rentable square feet of living space. There is a one-story building with an office/clubhouse, computer lab, study room, fully-equipped training room and recreation room with big-screen TV. There are 36 one-bedroom, one bath units; 121 three-bedroom, three-bath units; and 71 four-bedroom, four-bath units.

University Fountains Apartments has a community pool with a sundeck, a sand volleyball court and an outside basketball court. There are 723 open surface and carport parking spaces.

The property, which was acquired for $32,290,000, plus syndication costs, has a mortgage through LaSalle Bank National Association of Newport Beach, CA as security for a note of $22,000,000 at a fixed rate of 5.57% per annum, interest only for the first three years, amortized over 360 months, maturing in ten years, unless mutually modified or extended.

The seller was Lubbock 3 Student Housing, L.P. of Houston, TX. The seller's real estate broker for the transaction was CB Richard Ellis of Dallas, TX. The buyer's real estate broker was Real Property Systems Inc. of Victorville, CA.

Section 1031 of the Internal Revenue Code provides that the federal capital gains taxes are deferred when equity from business or investment real estate sales are exchanged into new properties. By completing a 1031 Exchange, an exchanger can dispose of a property, use all of the equity to acquire replacement investment properties and defer the capital gain tax.

Evergreen Realty Group, LLC is researching acquisitions primarily between $15 million and $50 million in the West, Southwest, Southeast and Midwest for Class "A" apartments, mid-rise office buildings, single-tenant industrial complexes and mini-storage properties.

(Forward-looking statements: Except for the historical information, the matters discussed in this news release may contain forward-looking statements, including, but not limited to, factors relating to future sales. These forward-looking statements may involve a number of risks and uncertainties.)