Portland, Ore. — February 7, 2008 — Shorenstein Properties LLC embarked on yet another addition to its Portland area commercial real estate portfolio by recently breaking ground on Kruse Oaks III. The five-story office building will be the newest addition to the Kruse Way submarket and will feature approximately 110,000 square feet of Class A office space.

Kruse Oaks III will be located at 5500 Meadows Road in the Kruse Way business district approximately 10 miles south of downtown Portland in Lake Oswego. The new building will have a two level structured parking facility as well as access to all the retail, restaurant and other amenities available in the Kruse Way submarket. In addition, the building is being designed to LEED Gold Certification standards.

“Moving forward with the development of Kruse Oaks III further demonstrates Shorenstein’s commitment to the Portland metro area with the addition of another top quality asset in one of the most desirable office markets in the Pacific Northwest,” said Gregg Meyer of Shorenstein Properties

Shorenstein has assembled a highly qualified team of professionals to work on the development including Group MacKenzie Architects, Howard S. Wright Constructors and Pacific Real Estate Partners working in conjunction with Shorenstein Realty Services on leasing.  The project is estimated to be delivered in April 2009.

Shorenstein’s Portland Metro-area portfolio (www.shorensteinportland.com) consists of just over four million square feet in four distinct submarkets throughout the region including Downtown Portland, Kruse Way/Lake Oswego, SW Portland/Beaverton, and John’s Landing.

About Shorenstein Properties LLC:
San Francisco-based Shorenstein Properties LLC (www.shorenstein.com) is one of the oldest and most successful private real estate investment companies active throughout the United States in the acquisition, development, ownership and management of office and mixed-use properties. Since its beginning in 1924, the company has evolved from a regional real estate operating company to an active national investor and manager of commingled institutional capital. Since 1992, Shorenstein has sponsored nine closed-end real estate investment funds.  Shorenstein’s broad access to transactions and extensive in-house investment and operating expertise has positioned Shorenstein to produce attractive investment results across multiple market cycles.