STEELHEAD CAPITAL PROVIDES $13.16 MILLION LOAN FOR ISLAND CLUB

Steelhead Capital, a commercial mortgage brokerage with offices in San Francisco and Seattle, arranged a $13.16 million acquisition loan for a multi-family property in Las Vegas. This transaction is particularly interesting because the property was underperforming and because Las Vegas is in a "credit watch" situation and obtaining financing is difficult.

FOR IMMEDIATE RELEASE
                  
Chelsea Campbell, Director of Marketing
Steelhead Capital            
415-397-2980 (phone)            
415-397-2981 (fax)            
chelsea@steelheadcapital.com
               
STEELHEAD CAPITAL PROVIDES $13.16 MILLION LOAN FOR ISLAND CLUB

San Francisco, CA -- January 10, 2002 -- Steelhead Capital closed a $13.16 million Fannie Mae loan in Las Vegas for the acquisition of the Island Club Apartments as of December 21, 2001. Notably, the property had less than 12 months of stabilized operating history; however, the loan enabled Virtu Island Club Associates, LLC to acquire the under performing property with below market rents using an 80% loan to value. The transaction was particularly significant considering the relative instability of the property and given Las Vegas current credit watch" status resulting from a drop in tourism traffic post-September 11th. The 7.22% fixed-rate mortgage was arranged through Arbor Commercial Mortgage and carried a 10-year term amortizing over a 30-year period. Peter Slaugh, Principal of Steelhead Capital, is the originator of the loan.

The Island Club Apartments is a 409-unit Class B apartment complex that was built in 1990. Project amenities include a swimming pool, clubhouse, playground and gated entrance. Virtu plans to complete $400,000 in renovations over the next 18 months, with the intention of taking advantage of Fannie Maes second loan program to cash out of the transaction after property stabilization.

Steelhead Capital is a premier provider of creative financing solutions for commercial real estate investors. Steelhead Capital brings an extensive network of lending sources, structured finance experience with a focus on acquisitions, and a clear commitment to personalized customer service to investors financing properties in any of the 50 states. Steelhead Capitals offices are located in San Francisco, CA and Seattle, WA. Complete company information can be found at www.steelheadcapital.com.

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