The past nine months have been highly productive for the RP Realty Partners Fund II (“the Fund”). Since making our first investment on August 8 2006, we have acquired 11 properties at an aggregate purchase price of $256 million, including three acquisitions that should close shortly. In addition, we have raised more than $50 million in capital, with Bear Stearns contributing $5 million in December. Our fundraising accomplishments underscore RP Realty Partners’ successful investment track record and the confidence that our partners and financial institutions place in us. The Fund’s 11 assets include eight properties near Orlando, Florida, three properties in New York’s Suffolk and Nassau Counties, as well as our first acquisition, Oak Hills Mall in Salem, Oregon. We have largely concentrated our investments on value-added multi-tenant anchored retail properties, although a number of our Orlando holdings have a mixed-use residential and office component to them, as well. As always, we have been judicious in our due diligence and in selecting our target markets. Our strategy has been to focus on upscale markets with strong demographics, high barriers to entry, and to leverage our debt relationships for financing. Our experience has taught us that these types of markets produce the most competitive long-term returns. By leveraging our deep relationships with financial institutions, the brokerage community and developers, we have been able to acquire all of the Fund’s assets in off-market transactions — thus avoiding bidding wars and increasing return potential. We have also focused on acquiring portfolios, which typically offer lower transaction costs and the efficiency of a single transaction for multiple locations. We expect to close on our final three properties in May and August 2007, and have since decided to close Fund II to investors and dispose of its assets in an orderly fashion. We have already listed the Baldwin Park retail center and the two Altamonte properties for sale and have received a high level of interest. Over the coming 12 months we will be aggressively marketing all of the Fund's properties. Based on the quality of these assets they will be attractive to both institutions and 1031 buyers, and we expect to see strong activity and believe we will realize very competitive returns. Upon the sale of Fund II’s assets, proceeds will be distributed to our limited partners and sponsors in accordance with the terms of our partnership agreement. In conjunction with plans to raise a new Fund III, we recently named Triton Pacific Capital as our exclusive placement agent. In this capacity, Triton Pacific will seek to raise $300 to $400 million from institutional investors, including pension funds, university endowment funds and life insurance companies. We have already prepared the required material for our road show and have begun meeting with investors investors. © Copyright 2007, RP Realty Partners, LLC. All rights reserved. California Finance Lenders License - pending. California loans will be made pursuant to Department of Corporations California Finance Lenders License.