US Industrial REIT Acquires Industrial Property in Woodland, California

November 17th, 2005 - San Antonio TX

The US Industrial REIT has purchased a 1.2 million square foot portfolio in the heart of the highly desirable northern California industrial market.

The $51 million purchase consists of three one-story Class A buildings in Woodland: Tide Court A, 221 Hanson Way and 2222 East Beamer Street. These properties represent efficient bulk distribution space within one of northern California's high growth industrial submarkets and offers easy access to and from Highway 113 and Interstate 5, near Sacramento.

The three buildings are well-leased to two tenants -- Hewlett Packard and Advanced Marketing Services, both serving regional and national customers. The Hanson Way and Beamer Street buildings have characteristics typically not found in most buildings in the market, including a 1:10,000 square foot loading door ratio, high tech security monitoring and surveillance and walls that fall below grade level pop-outs, allowing the buildings to be easily cross-docked.

US Industrial REIT is an affiliate entity sponsored by USAA Real Estate Company. The REIT owns 20 properties including more than 11 million square feet of industrial product valued at more than $450 million.

"The acquisition increases the industrial product in the US Industrial portfolio and enhances overall real estate diversification for USAA Real Estate Company and its fellow investors," says Ed Kelley, President and CEO of USAA Real Estate. "It is US Industrial's first portfolio in northern California and this asset will be managed by USAA Realty Company."

USAA Real Estate Company has more than $3.5 billion in assets under management and provides acquisition, build-to-suit and development services for corporate and institutional investors. The USAA portfolio consists of office, industrial, retail and hotel properties.