Urban R2 Development Company LLC, ("UR2") is pleased to announce that it has secured financing for the construction of the Catalyst project. The Catalyst is a mixed use project located at the northeast corner of Washington & Des Plaines Streets in the Near West Loop of Chicago. Plans for the site include a 21-story tower that was designed by celebrity architect Lucien LaGrange. The building will feature a full service 24 hour Walgreen’s with a drive through and surface parking exclusive for Walgreen’s customers. Above the Walgreen’s will be a 3-story parking garage for 225 vehicles. The remaining floors will consist of 220 luxury residential units in a fully amenitized building.

The Loan Agreement was finalized on December 2, 2009. The financing is being provided by private capital sources who are familiar with the project and the development accomplishments of its principal, Gary Rosenberg. At a time when equity and debt have become so scarce, any type of financing secured for new construction projects is an amazing feat. With so many lenders under regulatory pressure to rebalance their portfolios, Urban R2 had to search for capital beyond the scope of traditional financing sources. Mr. Rosenberg has been developing real estate for over 40 years and has a vast network of colleagues in the field which is further enhanced by his contributions and ties to the Kellogg Graduate School of Management at Northwestern University. The consensus from executives and business directors is unanimous - completing a transaction has never been so challenging. Each team member involved in the Catalyst project; architects, engineers, consultants, contractors, and agents are ecstatic to see this development break ground.

The loan is expected to close by the end of January, 2010. Proceeds will be used to retire existing loans and fund construction to complete the entire project. The terms set forth in the loan agreement match those outlined in a prior Loan Commitment which had been issued by the lender except that any and all conditions to funding have been removed since they have all been satisfied. Urban R2 has decided to move forward with the Catalyst as quickly as possible. The project will be completed at a time when very few developments will be coming to the market. Due to the lack of new construction starts today, the Catalyst will have a tremendous competitive advantage. The location of the project is also a key factor to its success. It is within walking distance to the Metra train stations, urban nightlife, and Chicago’s downtown central business district, the Loop.

The local Chicago office of Bovis Lend Lease, a globally recognized leader for managing some of the most celebrated developments, will be providing project management and construction related consulting services to the Catalyst. Bovis Lend Lease Chicago is dedicated to applying innovative processes and initiatives that set benchmark standards, reducing time and delivering value. Its work is characterized by innovation, collaboration, unwavering commitment to safety and the integrity and professional excellence to handle all project types. Bovis Lend Lease Chicago was named 'Contractor of the Year' by Midwest Construction and by the Coalition for United Community Action. Additionally, Bovis Lend Lease Chicago has received recognition for many Chicago projects – including Mr. Rosenberg’s most recent accomplishment at 600 N Fairbanks, the 41-story condo tower that was designed by Helmut Jahn.

Very few projects of this size have been able to obtain financing within the past 18 months. However, based on Mr. Rosenberg’s extensive experience with real estate developments, the company was able to secure a capital partner who believed in the merits of the project. Mr. Rosenberg’s track record certainly helped the deal’s progression. Mr. Rosenberg has developed over 50,000 residential units and related commercial facilities on thousands of acres throughout the country, and he has never failed to complete any of his real estate development projects. Mr. Rosenberg also created the real estate program at the Kellogg Graduate School of Management at Northwestern University where he sits on the board and teaches as an adjunct professor.