Boston, MA November 9, 2006

Intercontinental Real Estate Corporation Announces the Acquisition of Sterling Regency in Cary, NC

Intercontinental Real Estate Corporation, a national real estate investment, development, and management firm headquartered in Boston, Massachusetts announced the acquisition of Sterling Regency in Cary, North Carolina. The acquisition was made on behalf of Intercontinental Real Estate Investment Fund III, LLC.  The seller was a joint venture between Transwestern Investment Company and Grubb Properties.

Sterling Regency consists of two multi-story Class A- Office buildings totaling 372,355 square feet.  Located in Regency Business Park in the Cary submarket of North Carolina’s Research Triangle, the asset sits on approximately 18 acres of land with scenic views of Symphony Lake.  Sterling Regency is ideally positioned at the intersection of U.S. Highway 1 and U.S. Highway 64, allowing for easy access to Interstate 40, Raleigh/Durham International Airport, and downtown Raleigh.  Included in the acquisition is a 9 acre land parcel that is permitted for future office development.  Originally constructed in 1985 and 1998 as a secure facility for IBM, both buildings feature 9’ ceiling heights and raised floors.  Amenities include: 1,228 parking spaces, full fitness center, and cafeteria with catering capabilities.

“We are extremely pleased with the acquisition of Sterling Regency and the opportunity to invest in a high-class office complex with a strong tenant base, compelling demographics and exceptional location,” commented Peter Palandjian, Chairman and CEO of Intercontinental. The acquisition process was led by Kevin Darling, Director, Acquisitions for Intercontinental and brokered by Drew Flood and Jud Ryan of Cassidy & Pinkard.

Intercontinental Real Estate Corporation is an SEC registered investment adviser and real estate operating company with expertise in real estate investment, development, construction management, and asset management. The company has built, developed, managed and owned over $3 billion in real property assets across all property types including commercial, mixed use, hotel, recreational and residential projects.  Presently, Intercontinental manages a portfolio in excess of $1.6 billion for its clients and is actively seeking opportunities to invest in core, core plus as well as value oriented development projects.