Wien & Malkin Industrial Partners I, L.P. has closed on a well-located distribution center on the coast of Virginia, situated next to Norfolk International Airport, a cluster of military installations, and Interstate highways serving a broad swath of the Mid-Atlantic region.

At this time, eight properties, totaling 1.442 million square feet, comprise the Industrial Partners portfolio. Although only 90 percent of its capital has been spent to date, the remaining capital is committed to planned upgrades and leasing costs.

"Industrial Partners has acquired a diverse portfolio of quality warehouse and distribution facilities under terms that present excellent long-term current distribution and value-enhancement opportunities," says Anthony E. Malkin. "Our intent is to continue this program with a second industrial fund, to be launched in mid-2008."

The latest acquisition is a 142,000-square-foot facility in Virginia Beach, about 10 miles from the bustling port city of Norfolk and a short distance from the ports of Newport News and Hampton. A U.S. Navy base, a Naval air station and two amphibious bases are among the nearby military facilities. I-64 and Norfolk beltway I-264 link the area with major highways that serve virtually the entire East Coast.

"As is the case with our distribution center in the Charleston, South Carolina area, this newly acquired warehouse/distribution property is especially well positioned to serve the growing port logistics segment of the market," says Jonathan P. Garrity, President of Cambridge Hanover, who provides day-to-day management of the Industrial Partners fund on behalf of Wien & Malkin. "And it's located in a tight submarket, with very limited opportunity for new supply."

The fully leased property, located at 5901-5921 Thurston Avenue, in Airport Industrial Park, was purchased all cash for $6.7 million, or about $47 per square foot. Financing may be obtained in the future.

Five tenants, including Lockheed Martin, currently occupy the premises under leases that expire within three years. All but one of those leases are below current market rents, says Mr. Garrity.

"The industrial market for the greater Norfolk region enjoys an occupancy rate of about 95 percent, and the airport submarket is even tighter, at more than 97 percent," Mr. Garrity observes. "We've acquired a property below its replacement cost, less than a mile from the region's largest airport, in a high-demand location with limited new supply. With a variety of unit sizes, we look forward to a very favorable re-leasing opportunity at attractive rents."

Star indicates the advantageous location of Industrial Partners'
latest acquisition, in a region that includes major shipping
terminals, such as those of Norfolk and Newport News, and
several important Naval installations.

Constructed in 1971, the Thurston Avenue building sits on a 6.26-acre site that includes a large truck courtyard and parking for 60 cars. The building, with ceiling heights ranging from 21 to 24 feet, contains 11 dock-high truck doors, six rail doors, 9,000 square feet of office space and a full sprinkler system. A new roof will be installed prior to the re-leasing program.

In addition to Virginia Beach, Industrial Partners I owns facilities in or near Memphis, TN, Columbus, OH (three), Charleston, SC., the Research Triangle of North Carolina, and Philadelphia.

Investors are reminded that to qualify for participation in a Wien & Malkin investment offering, it is necessary to be registered as an Accredited Investor prior to the offering. Please visit www.wienmalkin.com.