Quarter Circle Capital, LLC Invests $22 Million to Acquire Two Commercial Real Estate Assets in Atlanta Metropolitan Area

Quarter Circle Capital, LLC (QC Capital) today announced the acquisition of two commercial real estate assets in the Atlanta Metropolitan area on behalf of their recently formed fund, QCC Fund I, L.P.

The first asset, known as One West Court Square, is a 158,000 square foot office and retail building located in Decatur, GA. QC Capital acquired the defaulted mortgage note on this asset and subsequently negotiated a deed in lieu of foreclosure with the borrower. The note was acquired from the mortgage note's special servicing agent for approximately $16.7 million in an all-cash transaction. This asset is currently only 23% occupied, and QC Capital is actively leasing the asset's vacant space.

"We have earmarked approximately $4.0 million of additional capital for leasing commissions, tenant improvements and building improvements in order to lease this asset, and have already received positive leasing activity," said Starr P. Schulke, QC Capital's Chief Investment Officer.

The second asset, known as Westside Parkway, is a 61,000 square foot office building located in Atlanta's Mansell Road Corridor. This asset was acquired in partnership with Phoenix Atlanta Partners with QC Capital providing the majority of the approximately $6.5 million all-cash purchase price. This asset was purchased in a negotiated transaction from Duke Realty Corporation and was 100% vacant. During purchase negotiations, Phoenix Atlanta sourced a 23,000 square foot tenant, and signed this lease concurrent with closing. Additionally, Phoenix Atlanta will occupy approximately 5,000 square feet in this asset, reducing vacancy to 55%.

"As with all of our acquired assets, we have substantial funds set aside for asset improvements, tenant improvements and leasing commissions, and we are anticipating rapidly leasing the remaining vacant space in this well-located and attractive asset," said Mr. Schulke.

"Both of these negotiated transactions fit perfectly within our Fund's investment criteria," said James R. Puckett, Chief Executive Officer. "We are in the business of acquiring non-core and/or problem assets or loans from owners or lenders."

With offices in Omaha, Nebraska and San Francisco, California, QC Capital focuses on principal acquisitions of distressed or defaulted debt on, or fee interests in, commercial real estate assets, generally ranging from $5 million to $25 million in value.

About Quarter Circle Capital:

Quarter Circle Capital, LLC makes principal investments in fundamentally sound real estate or debt secured by real estate, the value potential of which it perceives impaired by, among other things, stress caused by obligations of onerous capital structures, shifts in market conditions, property positioning and / or management. QC Capital's senior management includes Starr P. Schulke, Chief Investment Officer, Philip J. Gibson, Managing Director of Acquisitions, John P. Martin, Managing Director of Business Development and James R. Puckett, Chief Executive Officer. Messrs. Gibson and Martin began investing in distressed debt and fee interests in commercial real estate in 1991 and were joined by Mr. Schulke in 1997. Mr. Puckett, whose background includes real estate investment banking and senior level corporate management, joined Messrs. Schulke, Gibson and Martin in 2005 to extend the growth efforts of the company and head the company's executive and finance efforts. For more information about Quarter Circle Capital visit the company's Web site at: www.qccapital.com