Capri Capital Advisors, LLC Enters Into Joint Venture to Redevelop El Monte, California Shopping Center

JANUARY 2006 - CHICAGO, IL - Capri Capital Advisors, LLC (“Capri”) has announced it has entered into a joint venture equity investment with The Festival Companies (“Festival”), a Los Angeles-based full-service retail development firm. Together, Capri and Festival will redevelop the existing 57,600-square-foot shopping center and adjacent land into a new 200,000-square-foot retail center that will feature destination retailers and entertainment/restaurant venues in a dramatic, shopper-friendly environment that highlights the area and its historical prominence as the western-most point of the Santa Fe Trail.

“This joint venture allows us to invest with Festival and the City of El Monte in the Santa Fe Trail Plaza retail shopping center,” says Daniel G. Goelz, Executive Vice President of Capri. “When this project is completed, it will be an integrated mixed-use community featuring an assortment of popular retail stores and food and entertainment offerings along with newly-constructed housing units that will cater to the residents of El Monte and its neighbors.”

“This project possesses many of the features Capri looks for when investing in urban markets,” says Quintin E. Primo III, Chairman and Chief Executive Officer of Capri and Executive Portfolio Manager of the Fund. “The redevelopment of this expansive site in the densely-populated area of El Monte will dramatically change the landscape of the community and will provide area residents with the ability to shop in close proximity to where they live.”

“We are pleased to join with the City of El Monte and Capri Capital Advisors, LLC in a public-private partnership,” said Mark Schurgin, President of The Festival Companies. “Our goal is to redevelop this area into a thriving retail and residential environment.”

About CSI II
In October of 2004, Capri announced that it had raised $287.5 million from 15 institutional investors, including several of the nation's largest pension funds, in forming CSI II. The Fund is organized to provide mezzanine debt and structured equity capital to leading real estate developers and owners, the majority of which will be structured as mezzanine loans or as preferred equity where the Fund will have a secured and preferential position in property cash flow and value relative to common equity.

About The Festival Companies
The Festival Companies, a Los Angeles-based real estate advisory firm and leading shopping center developer, has developed or redeveloped more than 100 retail projects from regional malls to open-air centers throughout Southern California and in select markets nationwide. Many of these retail projects have stimulated revitalization and economic growth in their surrounding communities. The Festival Companies has leased over 12 million square feet of retail space. Recent noteworthy accomplishments include a $90 million transformation of the ailing, nearly vacant, 1950's-era Buena Park Mall into today's Buena Park Downtown, a vibrant shopping and entertainment venue with 1 million+ square feet of new big-name retailers and an 18-screen movie theatre. Today, The Festival Companies' $84 million redevelopment of the Royal Hawaiian Shopping Center will restore this historic shopping center to its former position as the leading retail and entertainment destination in Waikiki. The Festival Companies has developed retail projects in 14 states comprising of over 20 million square feet. For more information on The Festival Companies, please call (310) 665-9600 or visit the company's website at www.festivalcos.com.

About Capri Capital Advisors, LLC
Capri Capital Advisors is an institutional real estate investment advisory firm, investing and managing commercial real estate properties and portfolios since 1992. Capri offers a broad spectrum of equity and debt products to its customers - through separate account and commingled fund vehicles - that include equity, debt and securities investment management services. Diversified assets managed on behalf of its pension fund and other institutional clients as of June 2005 total approximately $2.7 billion, with investment offices maintained in Chicago, Irvine, Kansas City and New York. For more information, please call 312-573-5300 or visit the company's website www.capricapital.com.

Capri Capital Advisors, LLC expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in their expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based.

This announcement does not constitute an offer to sell, or a solicitation of an offer to buy any security relating to Capri Capital Advisors, LLC or any of their funds. Any offer or solicitation may be made only through the delivery of a definitive Private Offering Memorandum and all information contained herein is qualified in its entirety by such Memorandum.