KUSHNER COMPANIES ACQUIRES THREE CITY BLOCKS IN ASBURY
PARK, N.J.

Based Upon Strong Demand for Phase I, Company Moves Forward With Phase II of Wesley Grove

ASBURY PARK, N.J., March 21, 2006 – Kushner Companies has closed title to three city blocks in Asbury Park, N.J., for development of Phase II of Wesley Grove at Asbury Park, a luxury residential development now under construction along the famed Wesley Lake at the southern edge of the city, announced Jeffrey Freireich, managing director. This acquisition clears the way for the private developer to move through the City’s Technical Review Committee approval process on its proposal to build an additional 300 condominiums and duplexes. Financing was supplied by Valley National Bank, which also supplied the Phase I financing.

Kushner Companies purchased the land, which includes three distinct Blocks, 131, 142 and 143, that form the triangle between Cookman, Asbury and Heck Avenues. Kushner Companies purchased the parcels from Asbury Partners, master developer of Oceanfront Asbury, the 56-acre, mixed-use master planned waterfront redevelopment now underway in Asbury Park.

“We have financed both phases of this project and are thrilled with the success,” noted Christopher J. Coiley, senior vice president at Valley National Bank. “We feel very positive about our involvement in the redevelopment of this historic area.”

“We are very excited about the purchase, which was completed the first week of March,” noted Freireich. “Our development arm, Westminster Communities, is well along on construction of Phase I of Wesley Grove. The new community has generated exciting demand from buyers. In fact, we are approaching a 50 percent sellout, and based on the response, we are looking forward to moving as quickly as possible to begin Phase II.”

The first portion of Phase I of Wesley Grove, known as The St. James, is scheduled for completion by early fall 2006. Approximately 50 percent of the 91 townhome and condominium units are already sold. The balance of the 146 residential units in Phase I should see construction commenced shortly.

Ultimately, Wesley Grove will encompass approximately 750 homes and 35,000 square feet of retail space in a pedestrian-friendly neighborhood. The proposed buildings in Phase II will range from three to eight stories. Approximately 450 parking spaces are planned along with a health club, pool and spa facility. The Liebman Melting Partnership, of New York City, is serving as architect for this phase.

The overall Oceanfront Asbury project – which will comprise approximately 3,000 residential units, a 450,000-square-foot retail/entertainment component, improved municipal services, and urban empowerment initiatives – is expected to be completed over a 10-year period. It will ultimately produce an estimated $1.25 billion in total economic redevelopment.