News Release

United Properties Signs Lease to Bring Kowalski’s to Oak Park Heights

Kowalski’s To Be First Specialty Grocer In Stillwater Area

MINNEAPOLIS (Oct. 18, 2004) — Kowalski’s Markets will be the first specialty grocer to enter the Stillwater market when it opens a 40,000 square foot store in Oak Park Heights next summer. The upscale grocer will anchor a 112,000 square foot neighborhood center located at the intersection of Minnesota State Highways 36 and 5.

Kowalski’s plans to model this store after other locations in the Twin Cities area, featuring its signature Italian Market design wrapped around a fresh produce section. “The first thing we want our customers to see is the bright, cheery colors of the freshest produce around,” said Jim Kowalski, founder and owner of Kowalski’s. “We try to design every store with produce as the centerpiece, not only because it’s a great first impression, but because fresh, organic produce is the centerpiece of healthy eating.”

The Stillwater market will feature the popular amenities and conveniences Kowalski’s has become known for such as a salad bar, olive bar, gourmet coffee, as well as a truly one-of-a-kind deli –– along with packaged-convenience foods, fresh flowers and Kowalski’s expansive gift and card department. This will be the 10th Kowalski’s in the Twin Cities metro area.

Kowalski’s will be the anchor grocer in the existing neighborhood center, which features a mix of service retailers and restaurants, including Wells Fargo, Mailboxes Etc., Regis Hair Salon, Domino’s Pizza and Cellars Wine and Spirits. Outlot buildings feature additional retailers, including Hollywood Video, Bayport State Bank and Burger King.

United Properties provides leasing and property management for the center and has been selected to provide general contractor services on the Kowalski’s construction by Prudential Real Estate Investors, which owns the center on behalf of investors.

“Oak Park Heights and surrounding communities like Stillwater and Lake Elmo are experiencing strong residential and commercial growth,” said Ronn Thomas, senior retail broker, United Properties. “Kowalski’s will be an attractive addition to other retailers that serve the same upscale customer.”

“Kowalski’s will provide the community with much-needed, quality services and products right in their neighborhood,” said Beth Holmgren, United Properties’ senior property manager on the project. “Kowalski’s is an excellent operator with many awards to their credit, including Minnesota Grocer of the Year, The Best Family Grocery Store Award and the Best Small Retail Full-Service Award. We believe this is great fit for the community.”

About Kowalski’s Markets
Kowalski’s Markets is a family-owned collection of markets on both sides of the river. The company was started over 20 years ago by Jim and Mary Anne Kowalski when they took over a struggling Red Owl store on Grand Avenue in St. Paul. Today Kowalski’s features eight markets that bear the signature Italian Market design that has made Kowalski’s unique in the market. Their flagship Woodbury store has received the highest praise throughout the industry and has written up in every trade journal for its unique design that features produce as the centerpiece. Kowalski’s Markets focus is to bring their customers groceries for everyday along with unique, high-quality products and the kind of service they won’t find elsewhere. www.kowalskis.com

About United Properties
United Properties is a full-service commercial real estate company with more than 400 employees and 26.5 million square feet of office, industrial, retail and multi-family properties under management. The company specializes in diverse real estate services, including brokerage, property management, corporate real estate services, facility services, construction management, development services and investment services. Based in the Twin Cities, United Properties provides real estate services worldwide.

Media Contacts
Martha Nevanen
Vice President, Marketing Communications
952-893-7539
mnevanen@uproperties.com

Jessie Folkens
Sr. Communications Consultant
952-837-8516
jfolkens@uproperties.com