CalEast Completes CenterPoint Properties Trust Acquisition

CHICAGO, March 8, 2006 - The California Public Employees' Retirement System ("CalPERS") and LaSalle Investment Management ("LaSalle") announced today that through a subsidiary of their joint venture, CalEast Global Logistics ("CalEast"), they have closed on the previously announced acquisition of CenterPoint Properties Trust (NYSE: CNT) ("CenterPoint") in an all-cash transaction totaling approximately $3.4 billion. The merger was approved by the holders of 71.8% of CenterPoint's common shares who voted at the special meeting called to approve the merger. Under the transaction, all common shares are being acquired for $50 per share in cash.

CenterPoint's common and Series B preferred shares will be delisted from the New York Stock Exchange effective at the close of business today.

CalEast and its sister company, CalEast Industrial Investors, are leading investors in logistics warehouse and related real estate whose members include CalPERS and LaSalle. CalEast Industrial Investors owns and operates over 15 million square feet of industrial real estate, including warehouses, light assembly, air cargo and distribution centers throughout the United States, Canada and Mexico. LaSalle, the investment management business of Jones Lang LaSalle (NYSE:JLL), serves as the managing member of CalEast and CalEast Industrial Investors. Since 1999, CenterPoint and CalEast Industrial Investors have partnered in a joint venture known as CenterPoint Venture LLC, which acquires, develops, manages and sells industrial property.

About LaSalle Investment Management

LaSalle Investment Management, Inc., a member of the Jones Lang LaSalle group (NYSE: JLL), is a leading global real estate investment manager with approximately $30 billion of assets under management. LaSalle Investment Management is active across a range of real estate capital and operating markets on behalf of institutional and private investors worldwide. For more information, visit www.lasalle.com.

CalEast Industrial Investors to Acquire CenterPoint Properties Trust

CHICAGO, December 7, 2005 - CenterPoint Properties Trust (NYSE:CNT) ("CenterPoint"), the California Public Employees" Retirement System ("CalPERS") and LaSalle Investment Management ("LaSalle") today announced that CalEast Industrial Investors LLC ("CalEast") and CenterPoint reached a definitive agreement whereby CalEast will acquire CenterPoint for $50 per common share in cash.

CenterPoint is a publicly traded real estate investment trust (REIT) and the largest industrial property company in the 1.4-billion-square-foot Chicago regional market. CalEast is a leading investor in logistics warehouse and related real estate whose members include CalPERS and LaSalle. LaSalle, the investment management business of Jones Lang LaSalle (NYSE:JLL), serves as the managing member of CalEast. Since 1999, CenterPoint and CalEast have partnered in a joint venture known as CenterPoint Venture LLC, which acquires, develops, manages and sells industrial property.

The per share purchase price represents a 9.1% premium over CenterPoint’s closing share price on December 7, 2005, and a 13.1% premium to the average closing price over the past three months. The total consideration is approximately $3.4 billion, which includes the assumption of CenterPoint’s debt and preferred stock. CenterPoint expects to continue to pay regular common dividends, which are expected to be increased 8.2% to $0.4625 per quarter for 2006. CenterPoint’s 7.5% Series B convertible preferred shares will remain outstanding after the merger, but in accordance with their terms will become convertible into the merger consideration, without interest. CenterPoint’s Series D Preferred Shares, which are not convertible, will continue to be outstanding after the merger as well.

Completion of the transaction, which is expected to occur in March or April of 2006, is subject to approval by CenterPoint's common shareholders and certain other customary conditions. Completion of the merger is not subject to the receipt of financing by CalEast. CalPERS and Jones Lang LaSalle have subscribed to additional equity in CalEast to fund this transaction. This transaction has been unanimously approved by CenterPoint’s Board of Trustees.

"This transaction maximizes value for shareholders as an all cash sale with no financing contingency. The price achieved reflects the significant value of the operating platform that we have created.," said Mike Mullen, Chief Executive Officer of CenterPoint.

"Through CalEast’s acquisition of CenterPoint, we gain access to an attractive warehouse portfolio, a high quality land bank, and an outstanding management team that has played a pioneering role in the rapidly emerging intermodal logistics industry," said Lynn Thurber, Chief Executive Officer of LaSalle. "We look forward to the CenterPoint management team's continued leadership of the company."

"Rapid growth in global trade is driving significant change in the warehouse requirements and logistics strategies of companies around the world," said Mike McCook, Senior Investment Officer-Real Estate of CalPERS. "CalEast has had a property joint venture with CenterPoint for six years, during which time we have come to know the company and its management team well. We believe that CenterPoint is very well positioned to capitalize on the continuing modernization of the global supply chain."

Wachovia Securities acted as financial advisor to CenterPoint, and Kirkland & Ellis LLP provided legal advice to the company. Morgan Stanley acted as financial advisor to CalEast and Jones Day provided legal advice.

About CenterPoint Properties Trust

CenterPoint Properties Trust is a publicly traded real estate investment trust and the largest industrial property company in the 1.4-billion-square-foot Chicago regional market. As of September 30, 2005, CenterPoint owned approximately 38 million square feet and CenterPoint and its affiliates owned or controlled an additional 3,053 acres of land upon which approximately 44.1 million square feet could be developed. CenterPoint is focused on providing unsurpassed tenant satisfaction and adding value to its shareholders through customer driven management, investment, development and redevelopment of warehouse, distribution, light manufacturing buildings and logistics infrastructure.

About CalEast Industrial Investors, LLC

Founded in 1998, CalEast Industrial Investors, LLC is a leading investor in logistics warehouse and related real estate whose members include the California Public Employees' Retirement System and LaSalle Investment Management, Inc. CalEast owns and operates over 15 million square feet of industrial real estate, including warehouses, light assembly, air cargo and distribution centers throughout the United States, Canada and Mexico.

About LaSalle Investment Management

LaSalle Investment Management, Inc., a member of the Jones Lang LaSalle group (NYSE: JLL), is a leading global real estate investment manager with approximately $29 billion of assets under management. LaSalle Investment Management is active across a range of real estate capital and operating markets on behalf of institutional and private investors worldwide. For more information, visit www.lasalle.com.

Certain matters discussed in this press release are forward-looking statements within the meaning of Federal securities laws. There can be no assurance that future results will be achieved and actual results could differ materially from forecasts and estimates. Forward-looking statements in this press release include, without limitation, statements relating to the anticipated closing date of the transaction, and the possibility that any of the conditions to closing, including those outside the control of CenterPoint, will be satisfied. CenterPoint does not assure the future results or outcome of the matters described in forward-looking statements; rather, these statements merely reflect current expectations of the approximate outcomes of the matters discussed. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond CenterPoint's control. The reader is cautioned to make his/her own judgment with regard to the statements discussed in this press release and the assumptions noted by CenterPoint herein.

Many factors may cause actual results to differ materially from the anticipated future results or performance expressed or implied by these forward-looking statements. Certain factors that could cause actual results to differ materially are general business and economic conditions, completion of pending acquisitions and dispositions, competitive market conditions, weather, pricing of debt and equity capital markets and other risks inherent in the real estate business. Such factors and others are listed in the Company’s Form 10-K and 10-Qs.

Additional Information about the Merger and Where to Find It

In connection with the proposed merger of Solstice Properties Trust ("Solstice") with a wholly owned subsidiary of CalEast Industrial Investors LLC ("CalEast"), Solstice intends to file relevant materials with the Securities and Exchange Commission, including a proxy statement. INVESTORS AND SECURITY HOLDERS OF SOLSTICE ARE URGED TO READ THESE MATERIALS WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT SOLSTICE, CALEAST AND THE MERGER. The proxy statement and other relevant materials (when they become available) and any other documents filed by Solstice with the SEC may be obtained free of charge at the SEC's website at www.sec.gov. In addition, investors and security holders may obtain free copies of the documents filed with the SEC by Solstice by contacting Solstice Investor Relations at 630.586.8101 or accessing Solstice's investor relations website. Investors and security holders are urged to read the proxy statement and the other relevant materials when they become available before making any voting or investment decision with respect to the merger.

Solstice and CalEast and their respective executive officers, trustees, managers and directors may be deemed to be participating in the solicitation of proxies from the security holders of Solstice in connection with the merger. Information about the executive officers and trustees of Solstice and the number of Solstice common shares beneficially owned by such persons is set forth in the proxy statement for Solstice's 2005 Annual Meeting of Shareholders, which was filed with the SEC on April 19, 2005. Investors and security holders may obtain additional information regarding the direct and indirect interests of Solstice and CalEast and their respective executive officers, trustees, managers and directors in the merger by reading the proxy statement regarding the merger when it becomes available.

This communication shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

Portfolio located at 25 Airports in the United States and Canada

LaSalle Investment Management Announces Acquisition of Portfolio of Distribution Properties on Behalf of CalEast Industrial Investors, LLC from affiliates of Greenfield Partners, LLC

Portfolio located at 25 Airports in the United States and Canada

CHICAGO, IL April, 2005 – LaSalle Investment Management, Inc. ("LaSalle"), on behalf of its client CalEast Industrial Investors, LLC ("CalEast"), today announced their entrée into the on-airport air cargo real estate sector. The acquisition, believed to be the largest portfolio of privately held air cargo facilities, consists of 90 distribution properties at 25 airports across the United States and Canada and includes the formation of a venture to help grow CalEast’s presence with industry leader Aeroterm, LLC. The seller, a joint venture of Aeroterm, LLC and affiliates of Greenfield Partners, LLC, was represented by Mike Caprile, of CB Richard Ellis, and Banc of America Securities. Aeroterm will continue in its roles as Operating Partner and Property Manager. The portfolio contains 5.5 million square feet of distribution space and 4.3 million square feet of ramp space. CalEast was represented by the LaSalle Investment Management team of Dan Witte, Managing Director; Brian Trahan, Vice President; John Minahan, Vice President; and Neil Herceg, analyst.

"CalEast, one of the largest industrial landlords in North America, views the air cargo sector as an ideal complement to its existing portfolio," said Witte. "Air cargo buildings represent a valuable niche of real estate in the supply chain, characterized by strong, current and expected demand, coupled by very limited supply, with a finite amount of ‘inside the fence’ space that typically is controlled by government bodies."

"On behalf of CalEast, we are very pleased to team with Aeroterm as our operating partner," Witte continued. "The firm, and its founders, John Cammett and Kenneth Code have established themselves as leaders in this unique sector with a proven track record in creating value for investors, tenants and airports. We’re confident in their ability to continue to provide the business with a distinct competitive advantage."

The portfolio is approximately 93% leased with major tenants including FedEx Corp., UPS, DHL, the United States Postal Service, BAX Global and many of the major air carriers. It has a presence in some of the most active air cargo markets in North America including: New York, Miami, Dallas/Fort Worth, Newark, Houston, Portland, Philadelphia, Montreal, Edmonton, Calgary and Ottawa.

"We are excited to be venturing with CalEast,” said John Cammett, President of Aeroterm. "Their confidence and commitment is a validation of our plan and provides us with a stable, long term, competitive capital source, to continue expanding our business."

"We are extremely happy to have accomplished such a positive outcome, after dedicating seven years to building a significant and compelling portfolio," said Eugene A. Gorab, President and Chief Executive Officer of Greenfield Partners, LLC. "This has been an attractive investment for our Firm and a gratifying partnership with Aeroterm. We are confident that their new venture with CalEast and LaSalle will be equally successful."

Russ Blackwell, CEO of CalEast Industrial Investors and Managing Director of LaSalle Investment Management added, "The acquisition of this portfolio represents a key element in CalEast’s strategy of adjusting our risk/return mix by rotating into property types that we feel offer the most attractive opportunities for income and growth. The portfolio also offers CalEast the opportunity to gain access to both a strong portfolio and exceptional management team."

About LaSalle Investment Management

LaSalle Investment Management, Inc., a member of the Jones Lang LaSalle group (NYSE: JLL), is a leading global real estate investment manager with approximately $26 billion of assets under management. LaSalle Investment Management is active across a range of real estate capital and operating markets including private and public, debt and equity. For more information, visit www.lasalle.com.

About CalEast Industrial Investors, LLC

Formed in April, 1998, CalEast Industrial Investors, LLC (CalEast) is a real estate operating company whose members include LaSalle Investment Management, Inc. and the California Public Employees' Retirement System (CalPERS). CalEast owns over 40 million square feet of industrial real estate, including warehousing, light assembly and distribution centers throughout the United States, Canada and Mexico. CalEast has developed critical mass in core markets and is able to tackle complex portfolio opportunities, the construction of new facilities and leverage strong relationships with regional and national developers. For more information, visit www.caleast.com.

About Greenfield Partners, LLC

Founded in 1997, Greenfield Partners, LLC (Greenfield), is a private equity firm specializing in the real estate sector. Since inception, Greenfield has sponsored five investment vehicles which have attracted over $1.8 billion in equity commitments. Greenfield has offices in South Norwalk, CT and Chicago, IL. For more information, visit www.greenfieldpartners.com

About Aeroterm

Over the last decade, Aeroterm has focused on air cargo facilities, developing expertise in acquisitions, financing, day-to-day management, leasing and development. Aeroterm is headquartered in Annapolis, Maryland, with regional offices in Houston, Texas and Montreal, Quebec.

On the Block

A firm controlled by two well-known real-estate investors is putting more than 200 industrial buildings on the block. CalEast Industrial Investors, LLC, a joint venture of LaSalle Investment Management Inc. and the California Public Employees' Retirement System, says the buildings amount to a little more than half of its 40-million-square-foot portfolio.

Columbus, Ohio-based CalEast will consider a 50% joint venture interest in or outright sale of any of 207 industrial buildings totaling 23 million square feet of space in 18 markets in the Eastern U.S. CalEast hopes to take advantage of a strong market in the properties it is selling, while shifting the money to out-of-favor industrial properties that will generate higher returns. The firm wouldn't comment on how much the assets might fetch.

RIght now, "the best returns are in the value-add sector" of the industrial market, says Russ Blackwell, CalEast's chief executive and a managing director at LaSalle Investment. Mr. Blackwell estimates about 20% of the CalEast portfolio currently includes such value-add industrial properties and says CalEast may look to increase such investments to as much as 80% of the portfolio. He defines value-add properties as those that can be redeveloped or have high vacancy rates, as well as development projects built for specific users and even those built without a tenant committed to the space.

Wall Street Journal
1/26/2005

CenterPoint Venture to Be Extended and Expanded; Revolving Fund Expected to Significantly Expand Activity

Oak Brook, Ill. Sept. 22,2004 - CenterPoint Properties Trust (NYSE:CNT) announced today that it has agreed to a five-year extension and expansion of CenterPoint Venture LLC, a co-investment entity originally formed in January 2000 between the CenterPoint's taxable subsidiary and CalEast Industrial Investors, LLC (a real estate operating company owned by The State of California Public Employees' Retirement System and LaSalle Investment Management. Inc.).

CenterPoint Venture's revolving fund includes expanded equity commitments of $200 million by CalEast and $67 million by CenterPoint. Concurrently, the venture expects to renew its line of credit and expand its capacity to $150 million. 'The reformulated venture expects to undertake up to double its historical activity.

CenterPoint Venture will continue to invest in 'institutional quality' opportunities routinely passed over by the Company due to its more value-added investment focus. The venture improves, packages and then sells these assets to more fixed-income oriented investors. The renegotiated venture also expects to engage in more build-to-suit development than it has in the past and turn its investments more rapidly.

"CalEast has proved itself a terrific partner over the last four years. Our venture will continue to operate with a similar structure and governance, but the renegotiated terms are in line with today's improved market for institutional equity," stated Paul Fisher, Chief Financial Officer.

"We are delighted to renew our CalEast relationship. It very much complements CenterPoint's 'self-funding' business model and franchise. The venture has not only been successful in providing attractive capital, but in CalEast we have found a partner with whom we can efficiently transact other acquisition and disposition business. Over the last four and a half years, about half the $600 million in activity between CenterPoint and CalEast has been transactions outside the venture."

Russ Blackwell, Chief Executive Officer of CalEast commented, "CenterPoint Venture greatly enhances the goals and strategies of CalEast. We are thrilled to grow our relationship with CenterPoint and look forward to continuing success with this creative and entrepreneurial franchise."

The $150 million credit facility syndication is co-led by JP Morgan Securities Inc. and Banc of America Securities LLC. Other banks participating in the facility are Allied lrish Banks, p.I.c., PNC Bank, N.A., US. Bank National Association, Wells Fargo Bank, N.A., Bank Hapoalim B.M.. SunTrust Bank, Comerica Bank and The Northern Trust Company

The CenterPoint Venture extension agreement is subject to the closing of the $1 50 million line of credit, which is expected shortly.

CenterPoint Properties Trust

CenterPoint is a publicly traded real estate investment trust (REIT) and the largest industrial property company in the 1.3-billion-square-foot Chicago regional market. It owns and operates approximately 38 million square feet and the Company and its affiliates own or control an additional 3,185 acres of land upon which approximately 48 million square feet could be developed. The Company is focused on providing unsurpassed tenant satisfaction and adding value to its shareholders through customer driven management, investment, development and redevelopment of warehouse, distribution, light manufacturing buildings and logistics infrastructure. The first major REIT to focus on the industrial property sector, CenterPoint had a total market capitalization of approximately $2.7 billion as of June 30,2004.

Statements in this release which are not historical may be deemed forward-looking statements under federal securities laws. There can be no assurance that future results will be achieved and actual results could differ materially from forecasts and estimates. Factors that could cause actual results to differ materially are general business and economic conditions, completion of pending acquisitions, competitive market conditions, weather, pricing of debt and equity capital markets and other risks inherent in the real estate business. Such factors and others are listed in the Company's Form 10-K and 10-Qs.

CONTACT:

CenterPoint Properties Trust
John S. Gates, Jr. or Paige H. Gilchrist, 630-586-8101
URL: http://www.businesswire.com

LaSalle Investment Management Forms Joint Venture with Mexican Industrial Developer Vesta

Chicago, April, 2004 - LaSalle Investment Management, Inc., on behalf of its client, the California Public Employees' Retirement System ("CalPERS"), today announced a joint venture with Corporación Inmobiliaria Vesta, S. de R. L. de C.V. ("Vesta"), a real estate holding and development company specializing in Mexican industrial properties.

LaSalle, the real estate investment management arm of global real estate services provider Jones Lang LaSalle, will invest in Vesta's existing portfolio and explore additional development and investment opportunities. The firm, on behalf of CalPERS, has committed $50 million in capital over the next three years.

Vesta´s current portfolio comprises 18 buildings totaling 1,629,829 square feet across six metropolitan areas in central Mexico: Mexico City, Queretaro, Tlaxcala, Toluca, San Luis Potosi and Cuautitlan in the State of Mexico. The properties are located in industrial parks with good access to the region´s principal highways. Their multinational tenants include: BMW, Delco Remy, Hitachi, Georgia Pacific, Mars Inc., Hitachi, JSP International and Grammer.

"This represents the first of several investments that will expand LaSalle's platform in México," said Amy Erixon, Director of Mexican Operations for LaSalle Investment Management. "By working closely with our colleagues in Jones Lang LaSalle Mexico and leveraging their on-the-ground knowledge, we have been able to uncover very attractive opportunities for our institutional clients."

Lorenzo Berho, Chief Executive Officer of Vesta, commented, "It is very significant that one of the largest pension funds worldwide, with the help and advice of LaSalle, has chosen our company as an investment vehicle and an opportunity for growth. We are very proud of the excellent results our company has obtained since its creation and are very optimistic about this venture, which enables us to position ourselves in a higher business scale and dimension to continue developing the industrial base of Mexico."

"This will further cement Jones Lang LaSalle's position as a leader in the Mexican market," added Pedro Azcue, President of Jones Lang LaSalle Mexico. "LaSalle Investment Management's increased presence in Mexico will substantially expand the range of services we can offer our clients."

About LaSalle Investment Management

LaSalle Investment Management, Inc., a member of the Jones Lang LaSalle group (NYSE: JLL), is a leading global real estate investment manager, with approximately US$23 billion of assets under management. LaSalle Investment Management is active across a range of real estate capital and operating markets including private and public, debt and equity.

For more information visit www.lasalle.com.

About Jones Lang LaSalle

Jones Lang LaSalle is a globally integrated real estate services and money management firm, operating across more than 100 markets around the globe. The company provides comprehensive integrated expertise, including management, transaction, advisory and real estate money management services, to investors and occupiers locally, regionally and globally. Jones Lang LaSalle is an industry leader in property and corporate facility management services, with a portfolio of approximately 725 million square feet (67 million square meters) under management worldwide. LaSalle Investment Management, the company's real estate money management business, is one of the world's largest and most diverse real estate money management firms, with approximately $23 billion of assets under management. For more information, visit www.joneslanglasalle.com.

About Vesta

Vesta started operations six years ago with a majority of Mexican shareholders and a group of US investors based in San Diego, CA. The experience of the Mexican and US investors in the real estate industry helped the company build better buildings each time, get better clients and leases, and later, a credit line with GE Capital and an ISO 9002-2000, being the first development company in Mexico to obtain it.

It is this type of venture that allows international funds, companies and people to benefit from better investment opportunities and, at the same time, participate in the development and improvement of standards of living in developing countries, helping to build their future.

For more information, visit www.vesta.com.mx

LaSalle Investment Management Acquires Mexican Real Estate Portfolio from G. Accion. Transaction believed to be the largest in Latin American history

Chicago and Mexico City, June 23, 2004 - LaSalle Investment Management, Inc. ("LaSalle"), a member of the Jones Lang LaSalle group, today announced the acquisition of a portfolio of 53 properties in Mexico. The portfolio was owned by G. Accion, a leading publicly traded Mexican real estate company.

The approximately US$300 million transaction is believed to be the largest ever completed in Latin America and establishes LaSalle Investment Management as the second largest industrial investor in Mexico.

LaSalle purchased the portfolio on behalf of a consortium of U.S., European and Canadian institutional investors, including the California Public Employees' Retirement System (CalPERS), the British Columbia Investment Management Corporation (bcIMC), and funds owned and controlled by the Jones Lang LaSalle group.

The portfolio, comprising more than 5.6 million square feet of leasable space, includes 52 industrial properties and one office building. The properties are located in 12 cities across Mexico, including all major cities and border markets. Tenants of the buildings are primarily multinational corporations, with 100% of the leases denominated in U.S. dollars. Among the current tenants are Banamex (Mexican subsidiary of Citibank), Sony, Samsung, ABB and Philips Electronics.

"The significant size and institutional quality of this portfolio were of particular importance to our investors," said Amy Erixon, Director of Mexican Operations for LaSalle Investment Management. "We believe that the risks associated with investing in Mexican real estate have been decreasing at a rapid rate, as evidenced by the country's recent achievement of an investment-grade rating. The track record, reputation and professionalism of the seller's management team were also important to selecting this particular transaction."

Commitment to the Mexican Market

This acquisition is LaSalle's second major investment transaction in Mexico in 2004. In April, LaSalle announced a joint venture with Mexican industrial developer Vesta. The firm, on behalf of CalPERS, purchased a 32% interest in a US$100 million portfolio comprising 21 industrial buildings in the greater Mexico City, Toluca, Queretaro, Tlaxcala and San Luis Potosi areas with plans to expand the portfolio substantially.

These two transactions demonstrate the commitment LaSalle is making to its investment practice in Mexico. LaSalle is planning to expand its investment management staff in the Mexico City office substantially over the next two years to support asset management requirements and will continue to assess new acquisition opportunities in the market.

Pedro Azcue, President of Jones Lang LaSalle Mexico and Latin America, welcomes LaSalle's increased presence: "After operating in Mexico for more than 22 years as a service provider, we are pleased to have this tremendous opportunity to grow and diversify our business and to have been able to act as a trusted advisor to two of LaSalle's most influential clients in the largest commercial real estate transaction in Mexico's history."

About LaSalle Investment Management

LaSalle Investment Management, Inc., a member of the Jones Lang LaSalle group (NYSE: JLL), is a leading global real estate investment manager, with approximately US$23 billion of assets under management. LaSalle Investment Management is active across a range of real estate capital and operating markets including private and public, debt and equity.

For more information visit www.lasalle.com.

Moody's Assigns Baa2 Issuer Rating To CalEast Industrial Investors LLC, A Joint Venture Between CalPERS And LaSalle US Holding; Rating Outlook Stable

First-time Rating

Moody's Investors Service has assigned Baa2 issuer rating to CalEast Industrial Investors, LLC, a joint venture owned 98% by the California Public Employees Retirement System (CalPERS) and 2% by La Salle US Holdings. CalEast acquires, develops and owns industrial assets in the Eastern USA. Moody's Issuer Ratings are opinions of the ability of entities to honor senior unsecured financial obligations and contracts. Moody's rating symbols for Issuer Ratings are identical to those used to indicate credit quality of long-term obligations. The rating outlook is stable. This is the first time Moody's has rated CalEast.

According to Moody's, the Baa2 issuer rating considers CalEast's successful execution of a "core plus" property investment strategy. The firm has a $1.4 billion portfolio of warehouse and flex industrial assets, with diversified tenancy and sizable positions in major industrial distribution markets (Chicago, New Jersey, Baltimore and Central Florida) in the Eastern USA. CalEast has generated competitive operational performance, with strong financial metrics, which include conservative leverage at 38% debt to gross asset cost (after considering pro rata consolidation of joint venture interests) and solid fixed charge coverages of ___X as of March 31, 2004. CalEast is also a strategic investment vehicle for CalPERS, which is the largest US pension fund, with over $130 billion in assets. These credit positives are offset by a high level of secured debt, the geographic limitations of CalEast's strategy which limits its franchise value, and the venture's higher risk appetite derived from an opportunistic investment strategy.

Moody's noted that CalEast's "core plus" strategy is reflected in the venture's wholly owned portfolio of stabilized industrial assets in addition to its speculative development activities (limited to 10% of gross asset value) and pursuit of value enhancement opportunities it primarily executes through majority ownership interest in joint venture arrangements with both public and private real estate entities. LaSalle Investment Management (an affiliate of Jones Lang La Salle Incorporated) provides advisory services through a dedicated team of real estate investment professionals, whose compensation is aligned with the interests of the venture. Leasing and property management services are provided from third-party service providers. Moody's believes this operating platform is cost effective and scalable; however, the limitations of this operating platform and CalEast's geographical focus (limited to Eastern USA markets) creates competitive limitations and constrains the establishment of a franchise and identifiable brand, particularly given trends in distribution logistics. As a result of its value enhancement and development activity, CalEast's portfolio occupancy was low at 85% as of March 31, 2004. In Moody's opinion, CalEast's more conservative leverage guideline of 40% of total asset value is a mitigating factor. However, Moody's does note that the components of CalEast's leverage are aggressive, and as a result of reliance on a revolving credit facility and mortgage financing variable-rate debt (net of swaps) is 17%, and secured debt which is 55%, of total debt at March 31, 2004. It is Moody's expectation that as CalEast considers refinancing strategies in 2005 and 2006, the proportion of unsecured financing will increase to enhance financial flexibility as the venture continues to pursue its active portfolio management strategy.

A ratings upgrade would be primarily dependant on a transforming event such as CalEast expanding and deepening its geographical exposure, and an internalized, vertical integration of management and leasing functions that solidify a franchise. In addition, a reduction of speculative development to less than 5% of total asset value while reducing secured debt to under 50% of total debt would have positive rating implications. We believe these events to be unlikely in the medium term given the venture's size and investment objectives. A downgrade of CalEast's rating would likely result from perceived weakening of support from CalPERS, increase in total leverage over 40%, or a rise in secured debt to over 60% of total debt. An increase in speculative development to over 10%of gross asset value or significant failures in speculative development activity would also put negative pressure on the rating. Moody's does not anticipate this to occur given the venture's investment guidelines.

CalEast Industrial Investors, LLC is a joint venture between CalPERS and LaSalle Investment Management headquartered in Chicago, Illinois, USA. CalEast owns, develops and operates industrial properties in a 38 state region of Eastern USA.

CalEast Purchases Portfolio of 34 Truck TerminalsSites to be managed by North American Terminals Management

Chicago, August 30, 2004

CalEast Industrial Investors, LLC, (CalEast) today announced the acquisition of the North American Truck Terminal Portfolio. The Portfolio consists of thirty-four freight terminal buildings located in key industrial hubs across the United States and Canada. Terms of the transaction were not released.

CalEast was represented by Dan Witte, Managing Director, and John Minahan, Vice President, both of LaSalle Investment Management. The seller, a joint venture between North American Terminals Management (NATT) and AEW Capital Management, was represented by Michael L. Caprile, Executive Vice President and Partner, CB Richard Ellis.

The portfolio was acquired in conjunction with North American Terminals Management (NATT). As CalEast's operating partner, NATT will provide leasing, management, development and acquisition services for the portfolio.

"As one of the largest industrial landlords in North America, CalEast views the truck terminal sector as an ideal complement to its existing portfolio," said Witte. "While often overlooked by institutional investors, we believe that the strong yields offered by truck terminals will draw increasing investor interest to the sector."

"We are also very pleased to have North American Terminals Management as our operating partner," he continued. "They have established themselves as one of the leading owner/operators in this unique sector of the market."

"We're pleased to be venturing with CalEast," said Ken Code, Founding Partner, NATT. "They understand our position in the transportation real estate niche and recognize our ability to add accretive acquisitions to a larger industrial portfolio. We believe the joint venture's resources will enable us to achieve our next level of enterprise growth."

About CalEast Industrial Investors, LLC

CalEast Industrial Investors, LLC, which owns 40 million square feet of industrial real estate throughout North America, is a joint venture between LaSalle Investment Management and CalPERS.

About LaSalle Investment Management

LaSalle Investment Management, Inc., a member of the Jones Lang LaSalle group (NYSE: JLL), is a leading global real estate investment manager with approximately $23 billion of assets under management. LaSalle Investment Management is active across a range of real estate capital and operating markets including private and public, debt and equity. For more information, visit www.lasalle.com.

About North American Terminals

Annapolis, MD based NATT is a real estate investment and development company whose founders, have been actively serving the real estate needs of transportation companies for over 10 years. They and affiliates own and manage approximately six million square feet in over 30 cities across North America.