2007-2008 MAJOR TRANSACTIONS

• During 2007, with real estate values peaking, WRES did not feel it was a time to be acquiring properties as the market appeared to be fully valued, if not over valued.  With cap rates at historical lows, we sat on the sidelines expecting the market to change.

• In the interim, we repositioned what few properties were still held by refinancing them and taking advantage of historically low interest rates.  Concurrently, Malibu Creek Plaza, in which the Principal of WRES was a partner, was sold after many years of ownership.

• Winco also began to wind down its business as commercial well underwritten “bridge” loans became more difficult to attract.  In the late fall of 2007, with all loans paid off without any losses, the company ceased to continue making bridge loans.  

• During the year, WRES extended and renegotiated all leases due to expire within the ensuing year at its Anchorage property. In Citrus Heights, a new tenant was placed in the single use building after the prior tenant defaulted.  Both of these properties are now fully leased.

• WRES purchased an approximate 80,000 square foot new industrial building in the Sacramento area on behalf of a client.  The building is leased to a long term credit tenant and WRES manages the asset.

• WRES continued the entitlement and development process on the new Stephen S. Wise Middle School which broke ground in the late fall of 2007.  WRES is managing all aspects of the development and the school is set to open in September 2009.

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