CityScape Announces Wachovia, Kimpton at Ground Breaking and Project Unveiling 
Leading National Financial Services Provider’s Regional Headquarters and Four-Star Hotel Palomar Coming to Downtown Phoenix  
PHOENIX, Ariz. (October 22, 2007) – The developers of CityScape announced new project details, including two major anchors, for the 2.5 million-square-foot, mixed-use project in downtown Phoenix. Wachovia Corporation, one of the nation’s largest diversified financial services companies, will anchor the 600,000-square-foot Class A office tower at One East Washington. Kimpton Hotels & Restaurants will operate a 250-room, luxury boutique Hotel Palomar in the mixed-use tower at One South Central that also includes approximately 150 luxury residential condominium units, plus lower-level retail. Additionally, the developers announced plans for 65 for-rent, market-rate apartments. 
     The new announcements coincided with the ceremonial ground breaking at the project site, and the project unveiling and reception at US Airways Center the evening of October 22. Nearly 600 guests attended the reception where Phoenix Mayor Phil Gordon, Phoenix Councilman Michael Johnson, Wachovia’s Arizona Regional President Bill Morgan, Kimpton CEO and President Mike Depatie and representatives from the project development team reviewed the project in more detail and celebrated the commencement of the project’s construction.  
     “CityScape is a landmark private sector investment over three city blocks that are crucial to our downtown revitalization plans,” said Phoenix Mayor Phil Gordon. “It will bring critical mass to the center of our city, paving the way for more shopping and dining options, plus a downtown grocery store. The groundbreaking is a wonderful first step in what will be an exciting and transforming project for downtown Phoenix.” 
     “This is a great day for the City of Phoenix and our development team who have worked together for nearly two years to reach this point in the project,” said Mike Ebert, Managing Partner at RED Development, LLC, part of the project’s development team. “Being able to create a cohesive, mixed-use development of this scale on three city blocks in the heart of the fifth largest city in the United States is an amazing opportunity and marquee names like Kimpton and Wachovia want to be part of CityScape.”  
     In addition to the three floors of office space totaling 70,000 square feet, Wachovia will receive building-top signage, open a retail branch in the building and distribute ATM locations throughout the project. Wachovia’s plans for a regional headquarters at CityScape coincide with the financial service provider’s expanded presence throughout Arizona. The North Carolina-based bank, whose western U.S. headquarters are based in the San Francisco Bay Area, has established Wachovia Securities and Mortgage offices, as well as 16 retail branches, throughout Arizona.  Wachovia will continue with aggressive expansion efforts over the next year. 
     “CityScape will be a vibrant and important component of the Phoenix landscape and we look forward to being a major contributor to this innovative downtown development,” Wachovia’s Morgan said. “By bringing a full range of financial products and services to this dynamic market, Wachovia is committed to being an active participant in the Phoenix community through our exciting partnership with CityScape.” 
     Kimpton hotels are known throughout the United States for their stylized décor, highly trained staff that specialize in personalized customer care, and popular perks such as free WiFi throughout most hotels; a daily hosted wine hour in the living-room style lobbies; Mind, Body, Spa in-room offerings that pamper; pet friendly policies and its “Forgot It, We’ve Got It” list of complimentary travel necessities. A chef-driven, gourmet restaurant located adjacent to the hotel is also planned.  
     “Earlier this year, Kimpton opened its first hotel in the Phoenix area with our Firesky Resort & Spa. Today, we are so excited to bring the first four-star-quality boutique hotel to downtown Phoenix and double our presence in the city,” explained Kimpton’s Depatie. 
     “The Hotel Palomar will be an experience in modern, yet timeless style and sophistication, and pay homage to the city’s arts and cultural communities.”   
     “Kimpton Hotels have an outstanding reputation and will be an extraordinary asset in marketing downtown Phoenix and our new convention center to visitors from across the country and around the world,” said Steve Moore, President and CEO of the Greater Phoenix Convention and Visitors Bureau.
     “And the retail opportunities included in the CityScape project, including the first grocery store downtown, are exactly the kind of ingredients that people look for in booking their conventions. This is a huge step for all of us and the ripple effect will be felt not only downtown but throughout the city.” 
     In addition to today’s announcements, CityScape will incorporate the TWELVE Hotel & Residences, offering up to 1,000 upscale, yet attainably-priced urban condominium homes paired with a 150-room boutique hotel; 250,000 square feet of retail including previously announced tenants AJ’s Fine Foods, which will bring the first grocery store to downtown Phoenix in many years, and P.F. Chang’s China Bistro, which is creating a signature urban eatery; 3,900 parking spaces and more than 100,000 square feet of open space, including the new Patriot’s Park.  Construction on CityScape, which was originally announced in February 2006, will begin immediately with the excavation of the parking garage on the middle block and the relocation of utilities near the site. The first phase of this multi-phase project is planned to open late 2009, with construction continuing through 2011. Phase one includes the Class A office tower, approximately 200,000 square feet of retail, the apartments, underground parking on the middle block, renovations to the Patriot’s Park parking garage and the new Patriot’s Park.
     CityScape encompasses three blocks at the core of downtown Phoenix. The boundaries of the project are 1^st Avenue to the west, 2^nd Street to the east, Washington Street to the north and Jefferson Street to the south. RED Development (Scottsdale/Kansas City) and the Barron Collier Company (Phoenix/Naples, Fla.) are co-developing CityScape, the largest private investment in the history of downtown Phoenix, along with Novare Group (Atlanta) and CDK Partners (Phoenix). Hunt Construction has been named the general contractor for construction for the middle block. The Phoenix office of CB Richard Ellis is leasing the office space, while RED Development will manage the retail leasing. The project architect for the west and middle blocks is Seattle-based Callison LLC, while the project architect for the east block is Smallwood, Reynolds, Stewart, Stewart & Associates (Atlanta). The landscape, hardscape and open space design firm for the west and middle blocks is Murase Associates (Seattle). David Evans and Associates (Phoenix) is the civil engineer for both the off site and on site improvements related to the middle and west blocks. PK Associates, L.L.C. (Scottsdale) is the structural engineer for the middle block and KPFF Consulting Engineers (Seattle) is the structural engineer for the west block.