STONEBRIDGE DEVELOPERS DISPEL MYTHS REGARDING DISMAL FUTURE OF THE FLATS BY ANNOUNCING LARGEST SINGLE RESIDENTIAL PROJECT IN CITY IN 97 YEARS

1200+ New Housing Units to be Added to West Side of the Flats to Bring Stonebridge Project Total to Nearly 2,000 Units

CLEVELAND—September 20, 2006—If you listen to some reports, you might get the impression that there is no future for The Flats in Cleveland. But you can't tell that to Stonebridge developers Doug Price and Bob Corna. That's because their company, Stonebridge Building & Design, will unveil this Thursday Phases 5 and 6 of an eventual 12-Phase plan for the largest single residential project in Cleveland within the past 97 years. In total, nearly 2,000 housing units will make up the massive Stonebridge project, including 500 units that are already rented, 108 units currently under construction at Stonebridge Plaza, and more than 1,200 units to be included in Thursday's announcement.

"When I hear people say The Flats are dead, I just laugh and tell them they've been to the wrong side of The Flats," said Corna, a partner with Stonebridge Building & Design and long-time Cleveland developer. "The city hasn't seen a residential real estate project the size of what's happening on the west side of The Flats since the 1920s when the West Boulevard subdivision was announced. We've had more sales at Stonebridge in the past three years than any other local real estate development with more than $25 million in sales."

Not only is Stonebridge announcing the largest residential project to hit Cleveland in many decades, but there is also a substantial commercial addition. On Thursday, the company will also unveil renderings and a model that demonstrates its renovation plans for The Cantina Building. This 15,000-square-foot structure will ultimately be the new home for a mixture of offices and retail, including restaurants, a coffee shop, deli, wine bar and convenience store. A glass elevator will take visitors up to the bridge for a breathtaking view of the city. And there will be tall trees and other large foliage covered by an expansive skylight to make customers feel like they're walking and dining outdoors.

"What really sets Stonebridge apart from other projects and developments in the city, aside from its massive size, is the fact that it is already happening," said Doug Price, Stonebridge's other partner and CEO of The K&D Group, the largest owner and manager of Northeast Ohio apartments. "We've got 500 units already completed. We're putting a roof on another 108. And there is nothing to stop us from building the remaining planned units, because we already own the land. This is not just a vision. This is really going to happen, and the economic impact is going to be tremendous for Cleveland."

Developing adequate downtown housing has been a priority for many City officials from both the previous and current Administrations, even before the issue of gaming was planned for the ballot.

The Stonebridge Plaza Building being unveiled on Thursday is commonly referred to as the "crystal palace" because of its exterior. "It is going to be a new landmark to be seen from virtually everywhere," said Corna. The spacious condo units will feature floor-to-ceiling glass, large balconies, hardwood floors, stainless steel appliances and other upscale amenities. At the center will be a beautiful glass atrium covered with a skylight. The top floor will offer some of the city's most exquisite penthouses. Unit prices are expected to range from $150,000 to $1 million.

"We continue to rent and fill our units steadily despite what many in the industry describe as an economic downturn," said Price. "It goes to show that if you give people what they want—spectacular views of the both the river and the city, proximity to downtown Cleveland, and the extra elbow room to move around and even walk to the park—they will come."

According to Corna, the real momentum for Stonebridge dates back to 1995 when, as part of the City's bicentennial celebration, all the city's bridges were lit. "That really set the stage for people to focus on us and get excited about living here," said Corna.

Since that time, Corna and Price have accomplished a great deal, renovating the viaduct, which had been closed since 1912. They cleared the entire area from the overgrown vegetation, elevated the units 60 feet above the river below to provide spectacular views, and provided access to the city.

"We're all about the views," said Price. "Every unit has a view."

Price also noted the attraction of having access to the river. "This makes us unique," he said. "We leveraged a great Cleveland resource and allowed people to access it. We are the first residential downtown community with complete access to the river right outside their doors."

Key to Stonebridge's growth plans is the development of both Wendy Park and Whiskey Island. Stonebridge is working closely with the City to provide a number of infrastructure upgrades, including brick pavement and a secured walkway to Wendy Park. Over the next five years, not only will the city benefit from 1,200 additional housing units, but also 650,000 additional square feet of commercial and retail space. To connect all the buildings and towers, Price and Corna are planning glass skyways.

"It will be unlike anything else, even in the larger cities," said Corna.

The Stonebridge unveiling event, which will be attended by several Cleveland politicians, is scheduled to begin at 4:00 PM on Thursday, September 21 at 2222 Old Superior Viaduct. A party on the bridge, which is by invitation, will follow at 6:00 PM. As part of the unveiling event, Price and Corna will also announce their partnership with the charity Shoes and Clothes for Kids. As part of this agreement, Stonebridge will donate at least $1,000 for every condo unit sold in the new Plaza Building between now and the end of the year.

In addition to Stonebridge, Price and Corna were also responsible for refurbishing Reserve Square and the Embassy Suites.