ECM Fund to Invest $150 Million in Walgreen's Net Leases

CHICAGO - September 23, 2003 - PRNewswire

Equity Capital Management (ECM), an investment firm specializing in net leased commercial real estate, has raised a discretionary equity real estate fund capitalized to invest $150 million in real estate assets leased to Walgreen & Co. under long-term net leases.

Investors in ECM Income & Growth Fund, LLC include a broad spectrum of money managers and high net worth individuals from St. Louis and Chicago. Institutional partners include Bank of America, MONY Real Estate, Transwestern Investment Company, and Wachovia Securities.

The firm's principals, Shelby E. L. Pruett, a Chicago based institutional investor and fund manager, and James G. Koman, a St. Louis based real estate developer and entrepreneur, formed ECM for the purpose of sponsoring private equity investments by the principals and third-party investors. ECM's funds acquire commercial properties leased to national companies under long-term net leases where the tenant is responsible for all property costs such as taxes, maintenance and insurance. Properties generate current income during the holding period and are eventually sold with the objective of producing long- term capital gains.

'The net lease market is a proven and growing market that is attracting significant institutional attention,' said Pruett. 'We believe the demand for net leased properties will continue to grow and be enhanced as the economy improves and national companies are better able to capitalize on their credit rating. We are looking very seriously at a range of portfolio opportunities and are in discussions with a number of developers. We have the advantage of being able to move quickly, which is attractive to owners."

ECM's net lease strategy will help minimize most of the operating risk associated with property ownership and enable the fund to bridge real estate and economic cycles due to the long-term nature of the leases and investment grade credit rating of Walgreens.

As of September 2003, the Income and Growth fund closed to new commitments and began implementing its investment program. Approximately $45 million in assets have been acquired or are under contract to date. The investments are located in prime locations in either high-growth or established suburban areas. These areas have been targeted based on population density, traffic volumes, and established retail corridors.

While the Income and Growth fund is closed, ECM will launch a follow-on investment fund that, in addition to acquiring real estate assets net leased to Walgreens, will acquire net leased assets of a broad base of national tenants.

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