Released on: December 17, 2007, 4:53 pm

Press Release Author: Anne Monaghan / Monaghan Communications

Industry: Real Estate

Press Release Summary: Highland Development Company is 80 percent complete
redeveloping 375,000 square feet of mixed-use peripheral properties located along
the ring road of Macerich's Metrocenter Mall, a 1.3 million-square-foot regional
mall in Phoenix, Arizona. Highland has invested nearly $4 million in improvements,
and to date has sold 11 of the 16 retail buildings to investors and users including
two buildings to Sun Life Assurance Company of Canada for $7.75 million.

Press Release Body: PASADENA, CALIF. - Highland Development Company, a dynamic
retail and retail-driven mixed-use development company, announced that the firm is
80 percent complete redeveloping 375,000 square feet of mixed-use peripheral
properties located along the ring road of Macerich's Metrocenter Mall, a 1.3
million-square-foot regional mall in Phoenix, Arizona.

Highland Development purchased the 28 acres in July 2005 for over $32 million from
Skanlan Kemper Bard Co. of Portland, Oregon as a value-add opportunity. At the time
of the acquisition, the 35-year-old Metrocenter properties were more than 75 percent
vacant and included Four Points Sheraton Phoenix Metrocenter Hotel, Shoe Pavilion,
Cholo Branch Library, Red Lobster, and various shop and pad users.

Highland Development has invested nearly $4 million in improvements, and to date has
sold 11 of the 16 retail buildings to investors and users including two buildings to
Sun Life Assurance Company of Canada for $7.75 million. The buildings, which sit on
3.7 acres at 10217 North Metrocenter Parkway, total 40,310 square feet and include
tenants Alltel, Regency Beauty, Jason's Deli and The Shoe Pavilion. They were 100
percent occupied at the time of the sale. Capital Pacific of San Francisco, Calif.
represented the buyer, Sun Life Assurance Company, and seller, Highland MC, LLC, in
the sale transaction.

"We are focused on leasing the remaining retail space that we have available at the
center and selling the leased buildings. Currently, the former 50,000-square-foot
Home Place building, which now houses a new 36,000-square-foot 24 Hour Fitness
Center, is being marketed for sale by Capital Pacific for $12,945,000," said
President and CEO Gregory Hoxworth of Highland Development.

Leasing efforts continue to be strong at Metrocenter, said Hoxworth. "Chili's is
expected to open in May 2008 on the site of a former Hungry Hunter, which was
demolished," Hoxworth added. Three additional buildings remain available for lease
or sale: a former What a Burger drive-thru; a 14,000-square-foot building; and a
partially leased building with remaining space for a 24,000-square-foot tenant.

"The redevelopment plan for Metrocenter has provided Highland Development with an
excellent opportunity to add value and grow revenue through asset enhancements,
management and development expertise, and effective leasing and merchandising," said
Hoxworth.

The project is located along one of the area\'s primary business corridors, with
numerous hotels and conference centers and the Metrocenter Mall in close proximity
as well as the I-17, one of the busiest Arizona highways that links to all other
major freeways in the Phoenix metropolitan area.

"This is a great site with approximately 58,000 vehicles per day passing by. Within
3 miles, there are more than 451,000 people with an average household income in
excess of $57,817 and the population is expected to grow to 484,430 by 2011,"
Hoxworth noted.

"It also capitalizes on Metrocenter Mall's outstanding customer draw," said
Hoxworth. "In fact, this is the type of property that we are in the market for in
other markets in Arizona as well as in California, Nevada and Utah."

Metrocenter Mall was purchased in 2005 by a partnership led by Macerich of Santa
Monica, Calif., one of the largest mall owners in the U.S., and since then over $40
million in façade and parking lot improvements have been completed at the
development. The mall is anchored by Dillard's, Macy's, Sears and Harkins Theatres.

Bret Williams and Brian Ward of Retail Brokers, Inc. in Scottsdale, AZ are marketing
and leasing the project's shop space on behalf of Highland Development.

Although the market may be slowing down, Highland Development's thirst for new
projects is not. Highland is continuing to look for new opportunities in the West.
Highland Development plans to spend $150 to $200 million on development projects
during the next few years. The company's development strategy includes both
ground-up shopping center development and acquisition of existing properties with
value-add opportunities from two acres on up in the western United States.

Recently, the company announced that it plans to develop two neighborhood shopping
centers in California. In Visalia, Highland plans to develop a new $35 million,
82,000-square-foot shopping center that is expected to include a specialty market,
drug store, sit-down restaurant, various quick-serve restaurants, cafes, retail
shops and bank.

In the heart of Riverside County's La Quinta's Downtown Village, Highland plans to
develop a new $20 million shopping center anchored by Tesco's Fresh and Easy
Neighborhood Market and will include two retail pad buildings with an aggregate
total of 18,300-square-foot of shop space.

Additionally, the company is nearly finished with the construction of an
84,500-square-foot mixed-use retail/office project in Bakersfield. The new
development is anchored by an existing Walgreens and is expected to be completed
this month.

About Highland Development Company

Highland Development Company is a developer of retail and retail-driven mixed-use
projects throughout the Western United States. The company's development strategy
includes both ground-up shopping center development and acquisition of existing
properties with value-add and/or parcelization opportunities.

As a subsidiary of The Marcus & Millichap Company (TMMC), Highland can expand its
project types by partnering with TMMC subsidiaries SummerHill Homes and Urban
Housing Group for the development of mixed-use projects incorporating single-family
residents and apartment homes.

Currently, Highland has more than one million square feet in various stages of
development or redevelopment in California and Arizona. For more information, visit
www.highlanddevco.com or call Greg Hoxworth, CEO at (626) 696-2002.

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Web Site: http://www.highlanddevco.com

Contact Details: Greg Hoxworth
President & CEO
Highland Development Company
80 S. Lake Avenue, Suite 615
Pasadena, CA 91101
626.696.2002
ghoxworth@highlanddevco.com
www.highlanddevco.com