Prominent South Florida Real Estate Professionals Team To Purchase Orlando Resort Hotel

Fort Lauderdale, Florida (January 7, 2003) –REH Capital Partners, LLC, headed by Frank Nardozza, former National Real Estate and Hospitality Practice Leader for KPMG Consulting, announced today the acquisition of the 144 unit Lake Cecile Suites and Resort in Orlando, Florida in partnership with Ezra Katz, CEO of the IAG Florida and IAG Florida Corp, and Miami investor Enrique Dillon. The acquisition marks the first of several planned acquisitions by REH Capital Partners in the upcoming months in “turn around” hotel investment opportunities throughout the United States. The property was purchased out of foreclosure from an Arizona based lender for $4,700,000 representing a deep discount from pre-“911” market pricing and about a 60 percent discount to full replacement cost. The property will undergo a complete renovation and refurbishment, which is scheduled for completion in April of 2003 at an estimated cost of approximately $1,600,000. Upon completion of the renovation, the resort will be affiliated with Choice International Hotels as a MainStay Suites Resort and will be one of the first ever conversions of an existing property to the MainStay Suites brand in the United States.

“With this acquisition we believe we have found a tarnished gem whose luster we believe we can readily restore”, says Frank Nardozza, Chairman of REH Capital Partners and former National Hospitality Practice Leader for KPMG Consulting. He added, “we were able to lock in the pricing for the property back in March of 2002 based on immediate post “911” performance and we patiently waited and worked through many issues with the seller to finally reach the finish line last week”. Comments Jim Fitzgerald, Chief Investment Officer for REH Capital Partners, “we chose to affiliate with MainStay Suites, the extended stay brand of Choice Hotels International, since we felt we needed to get across the message that this property is more than a mix of standard sized hotel rooms and suites, and is different in that it offers very large family villa type units, all with full kitchens, ranging in size from 500 to 825 square feet per unit.”

Legg Mason Real Estate Capital out of Los Angeles, California provided acquisition and renovation financing for the property. Kelco Management and Development, based in Weston, Florida, will manage the day-to-day operations of the property. REH Capital Partners teamed with Fort Lauderdale based IAG Florida, Inc. in evaluating the transaction and completing the financing.

Lake Cecile Suites and Resort is located at the intersection of State Road 535 and Highway 192 in the heart of the Central Florida tourism corridor and just minutes from the Walt Disney World Attractions and Universal Studios Orlando Resort. The 10-acre resort consists of one and two bedroom suites, all with full kitchens and most with log burning fireplaces, situated in a scenic resort setting along the shores of Lake Cecile. The Resort was originally developed as a Marriott Residence Inn. The Resort features a lakeside sandy beach, wooden docks, a sun deck overlooking Lake Cecile, fishing, water sports, a playground, video game room, basketball and volleyball courts, a heated swimming pool and Jacuzzi, pool bar and snack bar, and many other resort amenities.

IAG Florida, Inc. provides development, mortgage and real estate brokerage services for hospitality, living & lifestyle real estate products. Associated with IAG Florida in Miami, a full service real estate investment banking firm, IAG provides clients with the integration of financial, operational and real estate development skills, all of which are essential for success in today's hospitality industry.

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