The Shops at Breedlove
Acquired in February, 2007 a 91,220 square foot shopping center on 10.34 acres in Monroe, Georgia. The property was purchased in a joint venture with a local real estate developer. The 30 year old property was 60% leased at time of purchase and in a state of disrepair. The business plan is to renovate the center and re-tenant it to make it a prime gathering and shopping plaza for local residents. The purchase was capitalized with financing from a local bank and private equity.

University South Business Center
Acquired in January, 2006 a 114,000 square foot office/warehouse/flex park located on I-85 in Charlotte, North Carolina. The property was purchased for $6 million ($52 psf) which is well below replacement cost and was about 65% leased at time of closing. The acquisition and subsequent lease up will be capitalized by a combination of equity (30%) and bank financing (70%). The business plan consists of fix up, lease up, and sale over a 3 year period.

The Shoppes at Wolflake
Acquired in April, 2005, a 55,000 square foot specialty retail service property near Wolfchase Galleria Mall in Bartlett, Tennessee(Memphis SMSA). The property was purchased for $5.6 million which well below the cost to replace it. The property was purchased subject to existing debt which was restructured to suit our needs. The initial cash on cash return was about 8% based on an87% occupancy with an expected increase to 12% as occupancy and rents are increased. The property was purchased for its long term cash flow potential.

Pine Tree Village Shopping Center
Acquired in December on behalf of a partnership needing a tax free exchange in December 2004, a 27,000 square foot specialty shopping center on a 7.4 acre tract at a major intersection in Cumming, Georgia a rapidly growing suburb north of Atlanta. The purchase price was $5.2 million. The property was 100% leased at the time of purchase.

The Village at Noble Farms, Suwanee, Georgia
Acquired in November, 2004 a 44,000 square foot specialty retail center on 10.5 acres at a major intersection. The purchase price was $9.2 million. The property was 92% leased at closing. The property offered investors a stable ongoing cash on cash return of about 10% per annum and the possibility to expand the center in the future as the market matures and several leases expire. The property was sold in January, 2008 for $12 million resulting in a 25% internal rate of return.

The following properties were purchased by limited liability companies organized by The Simpson Organization (TSO) during the period in which Stan Sonenshine was associated with TSO as Senior Vice President. Preferred Real Estate Funds LLC does not and has not had any ownership interest or responsibilities with regard to these properties.

Interstate Northwest Business Park, Marietta, Georgia
Acquired in December, 2003 a 275,000 square foot office/warehouse/flex park on 22 acres in a high density, high traffic location in Northwest Atlanta. The purchase price was $12.5 million. The property was about 70% occupied at closing and presented an outstanding opportunity to increase cash flow and value through cosmetic enhancements and aggressive leasing and management. The property was sold in 2006 for a substantial profit.

English Avenue Yards, Atlanta, Georgia
Four (4) industrial buildings totaling 88,000 square feet on 3.5 acres west of Midtown Atlanta. Acquired in May, 2001 for $1.3 million from an Atlanta partnership.  The property was purchased to take advantage of the redevelopment trend occurring in the area. 

1401 Peachtree Sheet, Atlanta, Georgia
A 5 story 85,000 square feet office building on Peachtree Street in Midtown Atlanta Acquired in March, 2001 for $7.6 million.  The Seller was DLJ.  The building is adjacent to 1389 Peachtree Street (see below) and represents a potential redevelopment

1389 Peachtree Street, Atlanta, Georgia
A 3 story 42,000 square foot office building on Peachtree Street in Midtown Atlanta. Purchased in September, 2000 for $4.5 million to take advantage of the emerging Midtown market The Seller was the architectural firm of Jova, Daniels, Busby which leased back 15,000 square feet of office space. Shortly after closing the building underwent interior renovations.

The Fountains Building, Atlanta, Georgia
An 82,000 square foot office building and an adjacent 6.7 acre development tract in the Vinings area of Atlanta, Georgia. The building  was purchased in May, 2000 from CMD Realty for $7.8 million to take advantage of road improvements and residential development in the area.

Shoppes of Baymeadows, Jacksonville, Florida
A 33,000 square foot neighborhood specialty center in Jacksonville, Florida. Acquired in November, 1999 from Principal Mutual Life for $2.3 million. The property was purchased to increase the size of the portfolio in the south Jacksonville market.

Oak Grove Shoppes, Altamonte Springs, Florida
A 175,000 square foot community shopping center located in Altamonte Springs, Florida. Purchased from UNUM Life Insurance Company in July, 1999 for $10.9 million which was well below replacement cost. Immediately after closing  Fresh Market leased 22,000 square feet on a new 10 year lease. The Property was sold in November, 2005 for $19.5 million

West Volusia Regional, DeLand, Florida
A 1998 this 265,000 square foot community center in DeLand, Florida Purchased in November, 1998 from MONY Real Estate for $14.3 million.   The Property is anchored by Winn Dixie, Eckerds, Belk’s, T.J. Maxx and Office Max, which was added post-closing. It is the dominant retail property in south Deland and was purchased to take advantage of Orlando’s northward growth along I-4. The property was sold in December, 2006 for $24 million

Pharr Plaza, Atlanta, Georgia
A 32,000 square foot retail and office center in the Buckhead area of Atlanta Purchased in May, 1998 for $2.7 million from a local investor. This 2.5 acre site, on Pharr Road in the Buckhead commercial district has significant future development potential. 

Baymeadows Festival
A 70,000 square foot retail center located in the Baymeadows area of Jacksonville, Florida. Acquired from German interests in March 1998 for $6 million to take advantage of Jacksonville’s southside growth.

70 Fairlie Street, Atlanta, Georgia
A 60,000 square foot renovated 5 story office building located at the corner of Fairlie and Walton Streets, in the Fairlie Poplar District of Downtown Atlanta. Purchased in early 1997 for less than $1.0 million from NationsBank, which owned it as a result of a foreclosure. The property was purchased to take advantage of the expansion of Georgia State University and the trend toward in town Living.  The property was sold in July, 2005 for $4.3 million.

Hammond Springs, Atlanta, Georgia
A 62,400 square foot specialty retail center on Roswell Road in the upscale Atlanta suburb of Sandy Springs. The property was purchased in November, 1997 from the Nevada State Retirement Pension Fund for $8.6 million.

Dunwoody Plaza, Atlanta, Georgia
This 50,000 square foot neighborhood retail center in North Atlanta was purchased from German interests for $2.6 million in May, 1997. The Dunwoody area offers very limited opportunity for future development. The center contained a vacant 25,000 square foot supermarket space.  The Property was renovated, the vacant space leased, and the existing tenant base has been upgraded. 

Rhodes Building, Atlanta, Georgia
This 70,000 square foot showroom building was purchased from private investors during 1996 for $3.45 million.  The property was net leased to Rhodes Furniture. Rhodes extended their lease term which enabled the owner to refinance the Property in December, 2002, and then sell to a private investor group in July, 2003 for $4.0 million. The cash flow during ownership and sale resulted in a 23% overall return to the equity investors.

Shops of Dunwoody, Atlanta, Georgia
A 70,000 square foot shopping center located in the Dunwoody area of North Atlanta. It was purchased from Equitable Life Assurance during 1995 for $6 million.  Since acquisition numerous physical improvements have been made to the property and rents have been increased substantially.

The following property was purchased by Steve Rothschild on behalf of a limited liability company organized by Rothschild Real Estate Services prior to the formation of Preferred Real Estate Funds LLC. Preferred Real Estate Funds LLC does not and has not had any ownership interest or responsibilities with regard to this property.

Ellard Village, Alpharetta, Georgia
Acquired in January, 2003, a 26,512 upscale square foot specialty retail center with 5000 square feet of office space for $4.7 million. The property offered investors who provided $1.2 million in equity a 9.0% annual cash on cash return. The property was sold in September, 2004 for $5.98 million effectively doubling the investors’ equity. The capital was subsequently redeployed into the Village of Noble Farms and Pine Tree Village which qualified as 1031 tax free exchange properties.