LOS ANGELES (September 17, 2007)—Younan Properties, Inc., one of the nation’s fastest-growing, privately held real estate investment firms, has added two office buildings to its expanding Houston portfolio. With the acquisition of 1700 West Loop South in the desirable Galleria submarket and Shepherd Place, just south of prestigious River Oaks, the firm’s Houston assets total more than 1.3 million square feet of Class A office space.

Situated in Greater Uptown on Houston’s West Side, 1700 West Loop South is a 15-story office building completed in 1980, offering 253,135 square feet of Class A space located along Loop 610 in the Galleria area. It is 100% occupied by tenants that include Christus Healthcare and Tulane University’s Houston campus.

Shepherd Place, a 14-story office building, is located at 2323 South Shepherd Street on the edge of River Oaks, Houston’s most exclusive residential neighborhood in Central West Houston, slightly east of the Galleria area. Built in 1984, it contains 118,000 square feet and is 97% occupied. Its largest tenant is the U.S. Customs office.

Younan Properties represented itself in the transactions. Dan Miller of Holliday Fenoglio Fowler, L.P. (HFF) represented the seller, Chicago-based CMD Realty Investors.

"The Younan team acted with professionalism and integrity throughout the entire process of acquiring these two outstanding properties, making for smooth and seamless transactions," observed Dan Miller, senior managing director of the Houston office of HFF. "The Galleria submarket is one of Houston’s most preferred office markets and one of its top performers from a leasing standpoint, making these acquisitions especially advantageous for Younan Properties."

Commenting on the fourth and fifth buildings added to its Houston portfolio since June, Zaya Younan, chairman and CEO of Younan Properties said, "Houston’s economy is experiencing robust growth. The Dallas Fed’s Texas Business-Cycle Index showed that in July, Houston grew at an annualized rate of 8.1 percent, the highest pace since November 2006. We are confident that the upswing that is now underway will continue for the next two to three years." Younan pointed to dramatic job growth and Port of Houston activity as indicators of the city’s robust economy. Now the third-largest owner of Class A office space in Texas, Younan Properties holds title to nearly 8 million square feet of prime commercial real estate in the state. In Dallas, it is the top office landlord, with approximately 12% of the city’s Class A assets. Nationwide, its holdings now total more than 10 million square feet of Class A office space.

Earlier this summer, Younan Properties acquired three other Houston office buildings: 6464 Savoy in the desirable deed-restricted Regency Square Office Park; Northbelt Corporate Center, an institutional grade, 10-story office property at 2350 North Sam Houston Parkway East; and the Westchase Bank building, an 11-story, 202,294 square-foot asset at 9801 Westheimer Road. It also owns Norfolk Tower, a 206,680 square-foot office building at 2211 Norfolk Street in Houston. It is under contract to purchase Two Westlake Park, a 381,327 square-foot, 17-story high-rise at 580 Westlake Park Boulevard in Houston.

Headquartered in Los Angeles, Calif., Younan Properties, Inc., a privately-held real estate investment group, specializes in acquiring Class A office properties in high-growth markets throughout the United States. Known for its detailed, hands-on approach to improving operational efficiencies while maintaining top building standards for tenants, the company is recognized for its success in turning around undervalued assets and maximizing the value of stabilized assets. Through the application of proprietary technologies and proactive management, Younan Properties has delivered to its investors an average leveraged IRR of 65% on properties sold to date.

Since founding the company in 2002, Zaya S. Younan has accumulated more than 10 million square feet of well-located Class A office buildings valued at more than $1.5 billion in key markets within Texas, Illinois and Arizona. Additional information about Younan Properties, Inc. can be found at www.younanproperties.com.