BentleyForbes

BENTLEYFORBES COMPLETES THE SACRAMENTO-AREA’S LARGEST SUBURBAN OFFICE ACQUISITION WITH $134 MILLION TRANSACTION

BentleyForbes Acquires Portfolio of Eight Office Properties From The Evergreen Company Encompassing Nearly 700,000 Square Feet; Firm Targeting $500 Million in New Investments Before Mid-Year 2004

Sacramento, Calif. (Oct. 30, 2003) – BentleyForbes, the Los Angeles-based, national commercial real estate investment firm, has completed the acquisition of eight suburban office buildings from The Evergreen Company in a transaction valued at $134 million, announced C. Frederick Wehba II, President of BentleyForbes. The eight buildings encompass approximately 700,000 square feet, and are located in the Sacramento-area suburban markets of Roseville, Folsom and Rancho Cordova.

"This acquisition marks a new era in the growth of BentleyForbes," said Wehba. "Acquiring a portfolio of this quality in a single and multi-tenant configuration shows that we are now committed to a wider criteria of investment. We are targeting $500 million in investments before mid-year 2004, and will be aggressively pursuing single-tenant and multi-tenant Class A office, industrial, warehouse and retail properties where strategically appropriate to the growth of our portfolio."

Bear, Stearns & Co provided BentleyForbes institutional financing for the acquisition. Heath E. Charamuga and the Capital Advisory Services Team of Grubb & Ellis Company spearheaded the transaction. The team from Grubb & Ellis includes: Charamuga, Bill Liggett, Erik Neese, Robert H. Cole and Susanne Baker, along with leasing specialists, Dennis Neeley and Clyde Rawlings.

According to Dan Cole, partner with The Evergreen Company, "the sale of this portfolio to BentleyForbes was a perfect fit. We were looking for an experienced and tested owner to acquire these properties, which were developed and leased by our company. We wanted the tenants to feel secure in the new ownership entity. A transaction of this size required us to identify a company that would be able to perform on the transaction and meet the necessary operational criteria. Our search for the right investor led us right to BentleyForbes following our decision to sell these eight buildings."

Chad W. Wehba, Chief Operating Officer of BentleyForbes mentions that while his firm will continue to pursue sale-leaseback and net lease properties, "BentleyForbes has enough capital on hand to facilitate large transactions of single and multi-tenant Class A properties like the acquisition of the The Evergreen Company Portfolio. Our capital resources demand broad investment criteria for our company to continue to grow."

"This transaction is a historic event for the Sacramento marketplace, and a validation of the health of the suburban office markets in this region," said Charamuga. "An acquisition of this complexity truly demands professionalism from the firms involved, and I give high marks to The Evergreen Company and BentleyForbes for the patience and expertise they both have demonstrated. Each side performed diligently on all necessary commitments, and kept this complex, eight-building transaction on the fast track to completion."

Noted as one of Northern California’s preeminent development ventures, the Sacramento-based Evergreen Company developed the eight mid-rise suburban office facilities over the last several years. The portfolio, leased primarily by Neeley and Rawlings of Grubb & Ellis, is virtually 100-percent leased, and is comprised of the following individual buildings and tenants:

1101 Creekside Ridge Drive, Roseville, Calif. – 88,400 square feet; leased by Agilent Technologies and Adventist Healthcare.
101 Creekside Ridge Drive, Roseville, Calif. – 62,300 square feet; leased by Agilent Technologies.
1025 Creekside Ridge, Roseville, Calif. – 73,800 square feet; 60,000 square feet of which is leased by Allstate Insurance.
10734 International Drive, Rancho Cordova, Calif. – 72,300 square feet; leased by Verizon Wireless.
10730 International Drive, Rancho Cordova, Calif. – 99,500 square feet; leased by Verizon Wireless.
3241 Kilgore Road, Rancho Cordova, Calif. – 102,830 square feet; leased by Delta Dental.
11120 International Drive, Rancho Cordova, Calif. – 99,500 square feet; leased by the State of California.
2155 Iron Point Road, Folsom, Calif. – 121,380 square feet; leased by Kaiser Foundation Health Plan.

BentleyForbes is augmenting its growth strategy through the strategic addition of senior executives to its operations team. Recently, the firm announced the appointment of Keith Bjelajac to the position of executive vice president. A seasoned real estate and finance executive, Mr. Bjelajac’s most recent credits include the oversight of the rapid California expansion of Krispy Kreme Doughnuts as Chief Financial Officer for Great Circle Family Foods and experience as a senior finance executive for Office Depot, where he was Chief Financial Officer for the firm’s International division.

About BentleyForbes
Based in Los Angeles, BentleyForbes is one of the nation's fastest-growing commercial real estate investment firms. The firm is exclusively focused on identifying long-term value in Class 'A' real estate. Currently, the firm's portfolio is valued in excess of $1 billion, including properties ranging from office buildings, shopping centers and industrial properties, to light manufacturing facilities and warehouses encompassing more than 11,000,000 square feet throughout the United States. For further information regarding BentleyForbes, its holdings and investment strategies, please log on to www.BentleyForbes.com.

About Grubb & Ellis
With access to collective resources of more than 8,000 people in over 200 offices in 31 countries, Grubb & Ellis is one of the world's leading providers of integrated real estate services. The company provides a full range of real estate services, including transaction, management and consultative services, to users and investors worldwide through its domestic offices and affiliates, global strategic alliances with Knight Frank, one of the leading property consulting firms in Europe, Africa and Asia Pacific, and with Canada's Avison Young. For more information, visit the company's Web site at www.grubb-ellis.com.