New Boston Fund and RER Equities Acquire 450,000 SF Capital One Buildings in Richmond, VA

Herndon, VA, September 29, 2004 - A joint venture of RER Equities, Inc. of Herndon, Virginia and New Boston Fund has acquired two Richmond, Virginia area Class A office buildings totaling 453,660 gross square feet from Capital One Financial Corporation. The 35-acre complex is located near the intersection of I-295 and I-64, across the street from the entrance to the highly acclaimed Innsbrook Corporate Center in Henrico County. A five-acre undeveloped land parcel in this premier office market was included in the acquisition.

"This acquisition provides us with a signature institutional-quality property in a landmark location," said Christopher Kallivokas, Chairman of RER Equities, Inc. "This property matched our opportunistic investment criteria perfectly, with its incomparable location and additional development potential. The buildings are located at the epicenter of the top office and retail corridor in the Northwest Quadrant of the Richmond suburban market. Both buildings offer large floor plates exceeding 40,000 square feet and have an extensive network of fiber optic cable, along with sophisticated uninterrupted power supply systems. We will invest in properties like this whenever the opportunity presents itself."

The new ownership plans to lease the buildings to corporate tenants after Capital One, which leased back the space, vacates the property in late 2005. The largest employer in Richmond, Capital One is moving to a new 350-acre corporate office campus at West Creek Office Park in Goochland County, about ten minutes away. Jeffrey Cooke and Evan Magrill of Thalhimer are representing the RER/New Boston joint venture in leasing the office space.

RER/New Boston has plans to enhance the property`s value through strategic leasing of the existing office buildings and realization of opportunities presented by the developable land that was included in this acquisition. "There is a significant demand for quality restaurants in the area, as well as for day care facilities," noted Bruce Levy, RER Equities` CEO. "We could help meet this demand through the sale or lease of retail and commercial pad sites on the property." Under existing zoning, and subject to local requirements, additional buildings can be developed on the site for use as office space, office condominiums, retail (including restaurants), lodging, or other uses.

The property was originally developed by Bank of Virginia, which changed its name to Signet Banking Corporation in 1986. In 1995, Capital One was spun off from Signet in one of Virginia`s most astounding business success stories. Capital One is now the fifth largest U.S. credit card issuer with nearly 50 million customers worldwide.

The five-story Operations Center at 11011 West Broad Street was constructed in 1976 with 243,357 gross square feet, including a first-floor employees` cafeteria that may be converted to a food court or retail center by the new ownership. The 210,303 GSF Card Center at 11013 West Broad Street, linked to its sister building by a two-story covered walkway, was completed in 1987 with raised flooring that accommodates high-tech wiring. Both buildings have been significantly renovated over the last decade. The new ownership plans additional renovations to ensure that these buildings are recognized as Class A institutional-quality office buildings.

The property offers an ideal location and visibility along I-64 and West Broad Street in the Northwest Quadrant. The two-building complex is just a mile from the exciting new Short Pump Town Center, which offers over a million square feet of upscale retail space. Also located on West Broad Street are such major retailers as Wal-Mart, Target, Barnes & Noble, Home Depot, Kohl`s, and Best Buy.

"This opportunity fit very well into our investment philosophy of acquiring well-located assets where we can add value through re-leasing and re-positioning," said James Kelleher, senior vice president and director of acquisitions at New Boston Fund. "We have built a strong partnership with RER, and we expect this investment to yield strong returns over the long-term.

"We are bullish on Richmond, and believe that the area is poised for steady economic growth," added Kelleher, noting that Money magazine recently named Richmond the most livable medium-sized city in the South.

"We have a track record of helping corporations like Capital One dispose of excess real estate in a win-win structure," added Jerry Rappaport Jr., president of New Boston Fund. "We are confident in RER`s ability to reposition the building to attract local corporations to this high quality, low-cost facility."

A recent issue of Forbes magazine ranked Richmond in its top ten "Best Places for Business and Careers," noting that Richmond is the only area to rank in the top half of its list for each of the nine criteria examined by Forbes.

James B. Gurley and Patricia Earnest of Walker & Dunlop represented the buyer on the transaction.

RER Equities, Inc. is an affiliate of RER Financial Group, LLC, established in 1989 to assist federal government agencies in handling the collapse of the nation`s savings and loan industry. Today, RER Financial Group provides a full range of real estate and financial consulting services to government agencies, Wall Street investment banks, rating agencies, and other financial institutions. The company has underwritten over $45 billion of commercial real estate assets and instruments. RER Equities, which acquires and invests in real estate and related assets, is in the process of expanding its real estate investment portfolio through unique acquisition and development opportunities. For more information, visit the Company Web site at www.rerfin.com.

Based in Boston, New Boston Fund is one of the fastest growing private real estate investment, development and management firms in New England. Founded in 1993 by the Rappaport family of Boston, New Boston Fund owns and manages more than 14 million square feet of commercial real estate worth more than $1.4 billion. For more information, see the Company Web site at www.newbostonfund.com.