PRESS RELEASE:
SARES REGIS GROUP OF NORTHERN CALIFORNIA AND CIGNA
ACQUIRE BELLA VILLAGIO APARTMENTS IN SAN JOSE

SAN JOSE, CA – August 11, 2009 – Sares Regis Group of Northern California, L.P. (SRGNC) and CIGNA Realty Investors (CREI) have acquired Bella Villagio Apartments, a 231-unit luxury apartment community located in San Jose, California for an undisclosed price. This acquisition brings the number of Bay Area apartment communities purchased by SRGNC to 18, representing approximately 3,400 multifamily units at a cost of over $440 million. This deal also marks only the second institutional acquisition of a multifamily property over 100 units in the Bay Area in all of 2009, further highlighting the slowdown in the volume of commercial real estate transactions as a result of challenges in the credit markets. An existing PNC/ARCS FNMA loan was assumed by the new ownership. Broker Scott Bales of Atlas IREG in San Francisco brought the deal to SRGNC.

“We are pleased to once again invest with SRGNC, with whom we have had much success in the past, in the acquisition of Bella Villagio,” said Robert Fair, acquisition director for CREI. “We believe this represents an excellent opportunity to acquire a newer Class A multifamily property at a significant discount to replacement cost and with potential upside based on the quality of the location, the benefit of professional property management and the anticipation of an improving economy over the next several years.”

“As a result of the downturn in the economy and housing markets, SRGNC has been aggressively pursuing both distressed assets and motivated sellers who control quality assets,” said Kenneth Gladstein, Senior Vice President of Investments for SRGNC. “Bella Villagio represents an ideal example of the latter – a five-year-old, institutional-quality asset that was acquired for close to 50% of what it would cost to build today. In addition, it represented a classic opportunity to acquire an under-managed property in a supply-constrained submarket.”

Also attractive to SRGNC was the ability to assume the existing FNMA loan. “Being able to obtain 85% leverage at below 6% for over seven years was clearly accretive to the deal,” said Gladstein. “In addition, having over three years of interest-only payments helps to provide both attractive cash yields on our equity and a cushion should the economy remain soft longer than we anticipate.”

Bella Villagio was built in 2004 and is located just south of downtown San Jose with access to the light rail system and all major Silicon Valley highways. The property has Mediterranean architectural details, average 985 square foot units, secured underground parking, a modern fitness room, heated swimming pool, two spas and yoga studio.

Sares Regis Group of Northern California and its affiliates, Regis Homes of Northern California and Regis Contractors of Northern California, are regional companies based in San Mateo, California, and are affiliated with Irvine-based Sares Regis Group. One of the leading developers and managers of commercial and residential real estate in the western United States, today the companies have a combined portfolio of property and fee-based management contracts valued at more than $4 billion, including 14,500 rental apartments and 15 million square feet of commercial and industrial space. Since its inception, the company has acquired or developed approximately 44 million square feet of commercial properties and 19,000 multifamily and residential housing units. SRGNC currently owns and manages for its clients over 12 communities and 2,500 units in the San Francisco Bay Area.

CREI is a division of CIGNA Corporation (NYSE:CI), a global health service company, that is dedicated to helping people improve their health, well-being and security. CIGNA Corporation's operating subsidiaries provide an integrated suite of medical, dental, behavioral health, pharmacy and vision care benefits, as well as group life, accident and disability insurance, to approximately 46 million people throughout the United States and around the world.

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