THE LIGHTSTONE GROUP ACQUIRES COLONIAL MALLS
IN MACON, GA AND BURLINGTON, NC FOR $170 MILLION

LIGHTSTONE’S NATIONAL, MULTIMILLION-DOLLAR
EXPANSION PROGRAM CONTINUES FULL SPEED AHEAD


LAKEWOOD, NJ, JULY 7, 2005 –The Lightstone Group, one of the largest private owners of retail property in the country, has announced the acquisition of two regional malls from Colonial Properties Trust for an estimated $170 million: the 1.4 million-square-foot Colonial Mall Macon in Macon, Georgia and the 415,000-square-foot Colonial Mall Burlington in Burlington, North Carolina.

David Lichtenstein, chairman and principal of The Lightstone Group, commented, “We love the southern hospitality almost as much as we love buying great properties!”

Angela Mirizzi-Olsen, chief investment officer of The Lightstone Group, stated, “As many of our acquisitions, this was a complicated acquisition with many variables that needed to be coordinated. Together, with the talented team of professionals at Wachovia and Lightstone, we were able to align all the necessary elements together efficiently to finalize this deal so that both parties walked away happy.”

The Lightstone Group plans to upgrade the tenancy and adopt improvements to enhance the shopping experience for guests at both centers. The Lightstone Group’s subsidiary, Prime Retail, will operate and manage the property. The company now owns retail properties in 25 states across the country and in Puerto Rico.

Located at 3661 Eisenhower Parkway, Colonial Mall Macon is the largest of Colonial Properties Trust’s centers and is Central Georgia’s most established shopping destination. It currently stands as a two-story, fully enclosed regional mall with five freestanding buildings. Colonial Mall Macon boasts 200 specialty shops and is anchored by Macy’s, Sears, Dillard’s, JC Penney, Belk Matthews and Parisian. Fronting Route 80 and Eisenhower Parkway on the south and Mercer University Boulevard on the north, the center is strategically located minutes from downtown Macon and is convenient to I-75 and I-475. Constructed in 1969, Colonial Mall Burlington stands as the only enclosed shopping mall in Alamance County.

Located at 180 Colonial Mall, Colonial Mall Burlington is conveniently located just one mile from I-85/I-40. Tall ceilings and ample skylights add to the welcoming environment of the mall, which currently offers over 50 specialty shops and restaurants. Anchored by Belk, JC Penney, Goody’s and Sears, the mall underwent a major renovation in 2003-04.

Bob Brvenik, president of Prime Retail, said, “Burlington and Macon Malls present wonderful opportunities for Prime to really showcase its talents. We look forward to making enhancements to these centers and giving them the ‘Prime’ touch. Our goal continues to be to create the most enjoyable shopping experience, which is why we have made significant security and image upgrades already. We’re excited about our plans to upgrade the tenant mix as well.”

Financing for this transaction was provided by Wachovia.

“We are delighted to work with David Lichtenstein, Angela Olsen and the entire Lightstone Group team,” said Chad Johnson, managing director of Wachovia. “They have established themselves among the most professional and knowledgeable owners in the real estate industry, and this strategic acquisition represents another success for Lightstone. I am confident that with Lightstone’s investment in these centers, they will flourish in their respective regions.”

Presidential Realty Corporation was an institutional partner in these acquisitions, providing necessary equity to complete the transactions.

Jeff Joseph, president of Presidential Realty Corporation, said, “We are once again delighted to have successfully completed the purchase of two more quality shopping centers with The Lightstone Group. We have been doing business with Lightstone since 1999 and have successfully completed a total of nine mall acquisitions. We look forward to continuing to build on this partnership.”

Headquartered in Baltimore, Maryland, Prime Retail is one of the largest and most successful owners of retail centers in the U.S. Its portfolio spans approximately 13 million square feet throughout major markets of the United States and Puerto Rico. Prime Retail has embarked on a multi-million dollar re-investment and re-branding initiative and is recognized as one of the leading retail outlet companies in the industry. For more information please visit primeretail.com.