September 04, 2008

CT REALTY CORP. ENTERS RESIDENTIAL LOAN MARKET WITH PORTFOLIO BUY FROM MAJOR INVESTMENT BANKING FIRM

NEWPORT BEACH, CALIF. – CT Realty Corp. has acquired a $33.5 million residential loan portfolio from a major investment banking firm, the Newport Beach, Calif.-based company announced today. The portfolio consists of first trust deeds on 99 single-family homes located in the western United States, primarily in California, Washington and Arizona.

According to Robert M. Campbell, president of CT Realty, most the assets are owner occupied with original loan to value ranging from 45 percent to 100 percent. The company plans to implement a multi-faceted workout strategy for the assets in the portfolio. Some of the loans will be traded to individuals and institutional buyers of distressed assets, while borrowers in other instances will be offered cash incentives for a deed-in-lieu of foreclosure. The strategy for the remainder of the loans will be to refinance or restructure.

Campbell also announced the acquisition is a joint venture with Fasthold Capital, a distressed debt acquisition company based in Orange, Calif., which will oversee the day-to-day operations and execution of the workout program. In addition, Mariners Asset Management of Newport Beach will provide oversight of due diligence and management on behalf of CT Realty.

"We have been studying this business for quite some time now," Campbell said. "This particular loan pool provides an attractive entrance into the business for us with the majority of the loans on single-family homes in California, Arizona and Washington. With pressure from the reguators and the sheer volume of delinquent loans, lenders need to divest these non-performing and sub-performing pools. Purchased correctly, there is an opportunity to earn above average returns for our investors."

Equity financing was provided by CT California Fund VI and a local real estate investor. Debt financing was provided by the Clark Investment Group of Wichita, Kan., and Warren Fix.

Since its establishment in 1994, Newport Beach, Calif.-based CT Realty Corp. has focused primarily on industrial, suburban office, multi-family, senior housing, retail, golf course and self-storage properties in the purchase range of $5 million to $75 million. Over the years, CT Realty has completed more than 140 transactions totaling more than $2 billion, which includes acquisitions, sales, development and redevelopment. In addition, the company provides development equity financing through strategic partnerships with developers primarily in Southern California.

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