05-07-07 Silver-McCann Apartment Group II, L.P. Acquires The Barons Apartments in Mesquite, Texas

RICHMOND, VA, BOCA RATON, FL and DALLAS, TX – June 6, 2007 – Silver-McCann Apartment Group II, L.P. (“Silver-McCann”) announced the acquisition of The Barons Apartments in Dallas (Mesquite), Texas.  The 508-unit, garden-style community located in the Mesquite submarket of metropolitan Dallas was built in two phases in 1999 and 2002 and will be managed by Lincoln Property Company.  The acquisition was funded in part by a 10-year fixed rate loan with a rate of 5.84% originated by Lehman Brothers Bank, FSB.

With this acquisition, Silver Capital -- a division of Silver Companies -- and McCann Realty Partners have added the second asset to their latest apartment investment fund, Silver-McCann Apartment Group II, L.P., with the expectation of acquiring an additional $120 million worth of apartment communities in this second fund.

“The Barons Apartments is an ideal acquisition for our second apartment fund.  We were able to attractively leverage this class A community with a long-term fixed rate conduit loan at 5.84%,” said Silver Capital CEO Larry D. Silver.  “This is the sixth acquisition that Silver-McCann has made during the last calendar year.  While it is a very competitive market for investments, we are very encouraged by the success that we are having accessing apartment acquisitions that meet our funds’ objectives.”

“We like buying well located, quality communities like The Barons from their original developer about five years after completion when the community is ready for fresh paint, a spruce-up of amenities and a renewed focus on marketing,” said John McCann of McCann Realty Partners.  “We are just beginning to see real rent growth in some DFW submarkets, including the Mesquite submarket, so we think that the timing of our acquisition of The Barons is just about right.”

Silver-McCann Apartment Group, L.P. was organized in April 2005 by McCann Realty Partners, LLC, an apartment investment company, and Silver Capital, LLC, a division of the real estate development and investment firm Silver Companies, to acquire apartment communities in the Mid-Atlantic and Southeast. The initial fund reached its stated objective of acquiring an apartment portfolio valued at approximately $100 million in the first 18 months of the partnership.  Silver-McCann Apartment Group II, L.P. was formed in January 2007 and continues the partnership with the expectation of acquiring $150-$200 million worth of apartment communities over the next two years.  Silver-McCann has broadened its geographic scope to include the Dallas, Houston, Austin and San Antonio markets in Texas.

Silver-McCann is currently seeking apartment acquisitions in the Mid-Atlantic, Southeast and Texas. For more information, please contact Brand Inlow, Director of Acquisitions, at (804) 852-6657.
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Since 1941, Silver Companies has built an impressive master development and real estate investment enterprise with commercial development approaching 11 million sq. ft. and residential site development totaling more than 50,000 units. In addition, the company’s private equity division has provided more than $1 billion in capital to builders and developers during the last six years. Silver Companies is led by CEO Larry D. Silver and is backed by teams of division presidents, engineers, contractors, project managers, lending, leasing and acquisitions professionals and nationally-recognized strategic partners. Its two headquarter offices are located in Metro Washington, D.C. and Boca Raton, FL. For more information, visit www.silvercompanies.com.

Richmond, VA-based McCann Realty Partners, LLC, was started in late 2004 to invest in apartments.  Its principals have decades of apartment industry experience.  By leveraging industry relationships developed over the past 35 years, MRP has demonstrated its ability to access capital sources and create deal flow, enabling it to find and close apartment investments.  For more detailed information, visit www.mrpapts.com.

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