FALCON REAL ESTATE ENTERS INTO JOINT VENTURE WITH DEVELOPER FOR OFFICE/RETAIL PROJECT

San Diego, CA, Mar 26, 2007 - /FLIERWIRE/-- Falcon Real Estate Investment Company, LP has entered into a joint venture agreement for the development of the Winchester Commercial Center. Located in Temecula, California, the 74,166 square foot center will consist of six free-standing office buildings totaling 45,750 square feet and two multi-tenant retail buildings with 28,416 square feet. Falcon's partner, Transcan Development, LLC, is an experienced developer with several office/retail projects totaling more than 3.7 million square feet currently underway.

Temecula, situated within the fast growing region known as the Inland Empire, is located in Riverside County, California and approxmately 40 minutes north of San Diego. Retail and office development is required to meet the needs of the region's rapidly expanding residential base.

All six office buildings in the Winchester Commercial Center have been pre-sold and the retail portion of the project is about 30% pre-leased. Construction of the center will commence the second quarter of 2007 with a completion date estimated at December 2008. The Ontario, California office of CB Richard Ellis is handling the sales and leasing of the center.

Falcon provided $7.7 million of equity to fund the development of Winchester Commercial Center. United Commercial Bank provided a $17.6 million construction loan to finance the development. Total development costs are expected to reach about $25.3 million.

Scott Sweeney, Executive Vice President of Falcon, commented "With current yields for stable assets so compressed, development joint ventures such as the one we completed for Winchester Commercial Center are a natural expansion of our business platform. Falcon has allocated additional funds for similar projects."

About Falcon Real Estate Investment Compamy, LP

Founded in 1991, Falcon Real Estate Investment Company, LP is a specialized, professional organization that provides a full range of advisory and management services for international investors in United States real estate. Acting in a fiduciary capacity, Falcon's experienced staff assists clients in acquiring new properties, managing existing properties and portfolios of properties, and arranging appropriate mortgage finanicing. For more information about Falcon Real Estate, please visit www.falconreal.com.