United Properties Announces Reorganization

Real Estate Services, Corporate Solutions Divisions to Operate as NorthMarq;
United Properties to Focus on Development, Investment Businesses

MINNEAPOLIS (Feb. 5, 2008) — Twin Cities-based commercial real estate leader United Properties today announced it will reorganize its business. The company’s Real Estate Services divisions, including Brokerage, Property Management, Construction and Corporate Solutions, will be reorganized under the NorthMarq name. United Properties will focus on its Development and Investment businesses. The reorganization is expected to be complete by May 1.

NorthMarq currently operates NorthMarq Capital, one of the country’s largest commercial real estate mortgage banking firms with offices in 29 markets. The new NorthMarq organization will provide clients with broad real estate services, in addition to the debt and equity services currently offered by NorthMarq Capital.

“This significant realignment of United Properties and NorthMarq will allow each company to focus on its unique value proposition, capture more market opportunities and be positioned for strategic growth on a national level,” said Boyd Stofer, United Properties President and CEO.

The new NorthMarq Real Estate Services and United Properties will be led by distinct leadership teams and operate as independent organizations under a new holding company with Stofer as chairman and CEO. Twin Cities-based Pohlad Companies will continue to own all companies. Job growth is projected at both United Properties and NorthMarq.

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(click image to open PDF file)

Jeff Eaton will become president of the newly formed NorthMarq Real Estate Services. Kevin Farrell will continue as executive managing director of NorthMarq Corporate Solutions. Frank Dutke will become president of the United Properties Investment and Development businesses. All currently hold executive positions with United Properties.

Boyd Stofer Jeff Eaton

Frank Dutke Kevin Farrell

“We announced in November that NorthMarq was laying the groundwork to become a major investment sales player,” Padilla said. “Our goal is to open up to three new offices this year.” Padilla said the company is planning to build a network of 10 strategically located Investment Sales offices over the next three years. “Notwithstanding the current economic and capital markets climate, we are committed to this strategy. In fact, the current environment may provide greater opportunities for acquisitions and recruitment,” Padilla added.

Ed Padilla, CEO NorthMarq Capital

Client-Focused Growth Planned For Core Real Estate Services
The new NorthMarq Real Estate Services organization will be strategic and selective in expanding into new markets. “NorthMarq Capital’s well-established national footprint and our expanded investment sales platform position us to grow into new geographic areas — based on where our clients need us,” said Jeff Eaton, who will lead NorthMarq Real Estate Services. “Our focus will be on strengthening our client relationships and adding more value to their businesses.”

United Properties Corporate Solutions in January announced it would integrate Philadelphia-based NorthMarq Advisors into its business. The division will operate as NorthMarq Corporate Solutions.

“Combining our businesses gives us the geographic reach to expand our service offering to corporate clients here and in other strategic locations,” said Kevin Farrell, who will lead the NorthMarq Corporate Solutions business. “Our two organizations already serve clients nationally and internationally. We expect to double our business by 2010 in order to service our growing customer base.”

United Properties Plans Investment, Development Portfolio Growth
The restructured United Properties will focus on its Investment and Development businesses. The company’s Development division over the last 30 years has developed millions of square feet of office, industrial, retail and multi-family/senior housing projects. The company currently has 16 active projects, including three Applewood Pointe senior housing cooperatives, two retail centers in Colorado, a mixed-used development and a number of industrial projects.

United Properties currently owns and manages 7 million square feet of assets, including office, industrial, retail and multifamily properties in Minnesota, Wisconsin and Colorado. Frank Dutke will continue to lead the company’s Investment and Development businesses. “Our focus will be on expanding, diversifying and creating portfolio value,” Dutke said.

NorthMarq and United Properties over the next 90 days will be finalizing the details of the restructuring, developing the expanded NorthMarq services brand and redefining the United Properties brand. Property leasing signs will begin changing in early summer, with both company names appearing on Twin Cities signage for a transition period.

About United Properties
United Properties is a diversified commercial real estate company with more than 500 employees and 30 million square feet of office, industrial, retail and multi-family properties under management. The company specializes in the full range of real estate services, including healthcare real estate, corporate services, construction and third-party services, along with businesses in retail, residential, office and industrial development.

Based in the Twin Cities, United Properties received the 2004 National Developer of the Year Award from the National Association of Industrial and Office Properties (NAIOP), the commercial real estate industry’s leading trade association, and has been recognized as one of the “Best Places to Work” by the Minneapolis/St. Paul Business Journal for the last five years. United Properties is located on the Web at uproperties.com.

About NorthMarq Capital
NorthMarq Capital is one of America’s leading real estate investment banking firms. With 28 offices in major markets coast-to-coast, NorthMarq offers its clients the ideal combination of a strong national company capable of attracting a wide range of capital sources and an organization strategically positioned to provide vital firsthand knowledge of and presence in local markets. In 2007, the company posted a transactional volume of more than $14 billion with a loan servicing portfolio of more than $35 billion on behalf of more than 50 institutional investors.

NorthMarq has a proud legacy of leadership spanning 50 years, providing the highest quality service to real estate investors, developers and capital sources.

The company provides debt and equity financing for all types of commercial properties. In 2003, NorthMarq became one of America’s largest mortgage banking operations with its acquisition of the mortgage banking and real estate consulting divisions of Legg Mason Real Estate Services. In 2004, NorthMarq became affiliated with AmeriSphere Multifamily Finance, one of America’s Fannie Mae DUS and FHA lenders.