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US Industrial REIT Purchases Distribution Building In Memphis, Tenn.

June 24th, 2003 - San Antonio, TX

US Industrial REIT, an affiliate entity sponsored by USAA Real Estate Company, has increased its portfolio with the recent acquisition of a Class A distribution building located in Memphis, Tenn. The property is located at 4880 Tuggle Road in southeast Memphis, and is 1,135,453 sq. feet. The purchase price was not disclosed.

The property was purchased from Commonfund Realty, an endowment fund based in Wilton, Conn. The investment manager was CB Richard Ellis Investors. Jack Fraker, John Robinson and Randy Baird located in Dallas, and Dan Wilkinson of Memphis, Tenn., handled the transaction for the seller.

With the addition of 4880 Tuggle, the REIT now owns 18 properties in three states including more than 9.9 million sq. feet of industrial product valued at more than $300 million. Building tenants include Ford Motor Company and Cleo, Inc.

Currently, US Industrial REIT (USIR) owns approximately 3.3 million sq. feet of industrial property in the metropolitan Memphis area. “This recent acquisition of the Tuggle property represents our latest expansion of an already significant portfolio in Memphis that we feel will add value to the USIR,” said Patrick Duncan, senior vice president of real estate operations and investments for USAA Real Estate Company. “This project, already fully leased, has excellent qualities in terms of function, location and tenant representation.”

USAA Real Estate Company has more than $2.8 billion of assets under management and provides acquisition, build-to-suit and development services for corporate and institutional investors. The USAA Real Estate Company portfolio consists of office, industrial and hotel properties as well as investments in real estate operating companies. Its parent company, USAA, a diversified financial services company, offers its five million members a comprehensive range of insurance, banking and investment products and services designed to help them meet their financial needs. Headquartered in San Antonio, with offices throughout the United States and Europe, USAA owns or manages assets of more than $66 billion.