Radius principals tell GlobeSt.com that the immediate businessplan for the Tustin Financial Center is to complete the retenantingto a multi-tenant office building. They note that 90% of thebuilding was leased at the time of the sale and that 57% of thespace will be coming available for lease in the second quarter of2008.

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The Tustin Financial Center was originally constructed as asingle-tenant building in 1978 for Texas Instruments. It wasextensively renovated in 2006 to convert it to a multi-tenant,institutional quality office building, which benefits from itscentral location in the Tustin/Irvine marketplace at theintersection of Myford Road and Walnut Avenue, one block offJamboree Road.

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Rhonda Henderson, executive vice president and one of thefounding partners of Radius, cites the historically low vacancyrates in the Orange County office market, which has consistentlybeen one of the top-performing office markets in the country inrecent years. She adds that the acquisition follows the Radiusstrategy of "buying very well-located multi-tenant office buildingswhere we can add value with our repositioning experience."

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At the time of acquisition, the building was leased to seventenants. Some 57% of the space is leased to publicly tradedAssurant, a New York City-based firm that provides a broad range ofinsurance products. Other tenants include Fantastic Sams hair care,health and wellness products provider Diamond Tree and electronicscomponent distributor TTI Inc.

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Radius execs tell GlobeSt.com that the company competed againsta number of bidders for the deal, which generated numerous offerson the initial bid and a select number of potential buyers includedin the second round. The company, which typically holds propertiesfor five to seven years, says that its hold for the TustinFinancial Center will depend on market conditions.

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Radius acquired the Tustin property from a SouthernCalifornia-based private investor in a transaction that wasbrokered by Gary Stache, Pat Scruggs and Anthony DeLorenzo of theCB Richard Ellis private client group in Newport Beach, whorepresented both the buyer and the seller. Bill Chiles and ScottPeterson of CBRE Melody's San Diego office, the debt and equityplacement division of CBRE, secured the funding for the transactionthrough Cigna Investments Inc.

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With the acquisition of Tustin Financial Center, RadiusInvestments and its affiliates have assembled a portfolio valued inexcess of $130 million since the company's founding in 2003. Itsother assets are located in Los Angeles, Ventura and San Diegocounties.

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