Needham, MA, May 10, 2006 - Potomac Realty Capital, LLC (“Potomac”), a full-service provider of bridge, mezzanine and permanent commercial real estate loans, structured and funded a $31.5 million fixed rate bridge loan, for the acquisition, construction and conversion of a 218 unit garden-style apartment community located in the sought after retirement area of Tucson, AZ. The loan was underwritten at 90% LTV with an 18-month term, interest only. The property is situated in Tucson’s bustling resort area and is in close proximity to conveniences such as medical facilities, universities, high-end shopping and Tucson’s popular River Walk. The complex is one of the newest developments in the area. The Borrower will use the proceeds to purchase the property out of bankruptcy court, complete the construction of the property’s is 21 buildings and then convert the property into a luxury condominium community.

Yaz Grotnik, Director of Sales for Potomac said, “The development encompassed three components including construction, property management and condo conversion making this a complex deal to finance. This client was a fairly new residential real estate developer and we were pleased to have guided them through the process and to have closed the loan in 30 days. Not only did we deliver a competitive program for this new Borrower, we were able to penetrate into a key market for the first time demonstrating our ability to provide creative commercial real estate financial solutions for borrowers in any SMA,” added Grotnik.

Potomac finances real estate transactions designed for visionary owners who value creative financial solutions, strong relationships, and outstanding service. Potomac was formed to offer innovative financing solutions for various types of transactions, including those that don’t meet strict underwriting guidelines. In 2005, Potomac originated over $1 billion in commercial mortgage loans. “We look past the numbers to see the intrinsic value of the deal.  Always keeping our client’s needs in mind, together with our customers, we create value.” said Palmier.  Potomac is headquartered in Needham, MA, with offices in New York, Miami, Maryland and Atlanta. For more information regarding Potomac Realty Capital, please contact Dan Palmier at (781) 972-0170.

Media Contact:      Elizabeth Sarhaddi
                                 Director of Marketing
                                 Potomac Realty Capital
                                 781.972.0170 ext. 6811