***Alex. Brown Realty, Inc. is a privately-owned real estate investment manager organized in 1972 and headquartered in Baltimore, Maryland. ABR co-invests with clients and joint venture partners in properties located throughout the United States. For four decades, in virtually all types of real estate and under widely varying economic conditions, ABR has represented the interests of its clients, maximizing the value of their real estate investments.ABR is an SEC-registered investment advisor. **** HistoryOrganized by the Partners of Alex. Brown & Sons. ABR was established in 1972 to originate real estate investments for the partners and clients of Alex. Brown & Sons (formerly the oldest investment bank in the U.S. and now a part of Deutsche Bank).The Alex. Brown Real Estate Group. In 1980, Alex. Brown & Sons formed Alex. Brown Realty Advisors, Inc. (ABRA) to provide real estate investment advisory services to public pension funds. Both ABR and ABRA were operated under the holding company Alex. Brown Real Estate Group, Inc. until 1990, when Alex. Brown & Sons merged ABRA with a subsidiary of Kleinwort Benson to form Alex. Brown Kleinwort Benson Realty Advisors Corporation (ABKB). ABKB subsequently acquired the assets of FIA Associates, Inc. and became the largest real estate advisor to public pension funds in the U.S. ABKB was sold to LaSalle Partners, Inc. in 1994.ABR as a Privately Owned Company. In 1991, ABR's management team and several key Alex. Brown & Sons employees purchased a controlling interest in ABR. Employees of ABR currently own approximately one-third of the company; the balance of the stock is owned by individuals and family-office investors, many of whom regularly invest in ABR sponsored funds. ***OverviewABR Investment Programs. ABR was established in 1972 to originate real estate investments for the partners and clients of Alex. Brown & Sons. In subsequent years, ABR's investment offerings have ranged from private partnerships structured for a handful of high net worth individuals to large publicly-registered national offerings for multiple investors. In 1994, ABR began to focus its efforts on large, commingled funds. These funds have delivered an institutional-quality real estate investment product and have provided clients with an opportunity to co-invest with ABR in a diverse portfolio of U.S. properties. To date, ABR has offered seven of these larger, commingled funds.Investment Strategy of ABR Funds. The investment strategy of the ABR Funds is defined by three principal characteristics:? Value-added investments, typically requiring development, redevelopment, rehabilitation, repositioning, recaplitalization or financial restructuring ? Investment in mid-size properties, generally requiring an equity commitment of $3?10 million, and having a total cost of between $10?30 million? Investment through joint ventures with local and regional developers and operators***Strategy - CriteriaBroad Network of Strategic Alliances. ABR makes its property investments through joint ventures established with local real estate developers and operators. These joint venture partners, who typically source the property investments, possess expertise in their local real estate markets and property types, and provide strong organizational and entrepreneurial skills at the property level. By making its investments through these joint ventures, ABR is able to create excellent portfolio diversification-investing in a broad spectrum of property types in a wide variety of geographic markets. Joint Venture Structure. Each investment is made through a separate joint venture established at the property level. All mortgages are also arranged at the property level, with the terms of each financing customized to suit the particular investment objectives and circumstances of the property. The joint ventures are typically structured as either a limited partnership.