Assignment
Acquire 3.2 acres in Durham for the development of a class A three story, 56,000 square foot office building to be anchored by Soloman Smith Barney in the top floor and the Anthony & Co, Durham office on the ground floor.

Objective
To create value for our investors which included numerous local families while developing a unique Class A office building.

Opportunities/Challenges
The site was quite difficult in topography and the schedule was extremely tight. AACRE Properties delivered the building on time and in budget. We were approached by an investor about selling the building, and we did so, subject to a 1031 exchange.

Results
We swapped the Valley View office for the Nortel Training Center in West Raleigh, a 180,000 square foot high technology office project located on 17.5 acres of land. The purchase price was so attractive no one could believe we were able to do it. We will re-tenant the property in 2005 after Nortel vacates at year-end 2004.