Cobalt REIT II.

Funded by seven institutional investors, REIT II holds enoughpromise for Cobalt to tap about $80 million of equity and leverageit to $250 million to $300 million for the development of roughlyfive million sf of light-industrial in the next three years,according to Lewis D. Friedland, managing partner of theDallas-based investment group. Leading the development push is DirkP.D. Mosis III, the REIT's San Antonio-based managing director,with Aaron Reynolds, senior associate in the headquarters office asthe program's financial analyst.

The first ground-ups are the 348,460-sf, five-building FreeportNinety in Stafford, TX, a 25-acre development with Avera CapitalPartners of Houston as its partner; 238,112-sf Shiloh 400 BusinessCenter in Alpharetta, GA, a three-building project on 18 acres withCharlotte, NC-based Crescent Resources LLC as the partner; and a54,000-sf building on 5.3 acres at Diamond Lake in Rogers, MN, withCobalt in a one-off development role. The spec buildings will comeon line in the fourth quarter.