US Industrial REIT II Purchases Industrial Property In Shepherdsville, KY

January 23, 2007 - San Antonio, TX

US Industrial REIT II purchased a 832,000 square foot industrial-distribution building in Shepherdsville, KY from Lauth Property Group on January 16th. The transaction's purchase price was not disclosed.

The building is located at 376 Zappos.com Boulevard and is 75% leased to Zappos.com, the leading on-line retailer of shoes and handbags. The property is located in the greater Louisville market and is within 15 minutes of the UPS Worldport Hub at Louisville International Airport. Lauth Property Group will continue to manage the property. The transaction was marketed by John Huguenard of the Colliers Investment Services Group in Indianapolis.

US Industrial REIT II is owned by affiliates of USAA Real Estate Company and other institutional investors. "This is a high-quality distribution property, strategically located in a key industrial submarket of Louisville with excellent accessibility to major interstate highways," said T. Patrick Duncan, President and CEO of USAA Real Estate Company. "With a quality tenant such as Zappos.com and excellent lease terms, this transaction makes a great addition to US Industrial REIT II's growing portfolio."

Since 1977, Lauth has been building facilities for clients to lease or own throughout the United States. Lauth's years of solid experience, coupled with billions worth of completed projects, make it a leading national development and construction firm. Lauth delivers virtually any type of facility including office, industrial, healthcare or retail from its offices nationwide. Additional Lauth information is available at www.lauth.net.

USAA Real Estate Company has more than $3 billion of assets under management and provides co-investment, acquisition, build-to-suit and development services for corporate and institutional investors. The USAA portfolio consists of office, industrial, retail and hotel properties as well as investments in real estate operating companies with an annual volume of transactions in excess of $1billion. USAA Real Estate is a subsidiary of USAA, which has been serving military families since 1922 and has become one of America's leading financial services companies. The association, well known for its exceptional service, offers its 5.6 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, Texas, with offices throughout the United States and Europe, USAA owns or manages assets of more than $100 billion.