SWIG Announces the Purchase of 40,210 Square Foot Littleton Retail Center

LITTLETON, Colorado – July 2008 – On July 29, Meadows Investors, LLC, a joint venture between Southwestern Capital Partners, LLC and Quiat Meadows, LLC, successfully closed on the purchase of the Meadows Plaza Shopping Center in Littleton, Colorado. The Meadows Plaza is a 40,210 square foot in-line retail center at the northeast corner of Ken Caryl Avenue and Simms Street. The center is currently 90% occupied by thirteen tenants including Vitamin Cottage, Einstein Brothers Bagels, Papa Johns and Blockbuster. The purchase also included four out parcels that are ground leased to Wendy’s, Pizza Hut/Taco Bell, Diamond Shamrock Gas Station and Xpress Lube/Car Wash. Plans for the center call for minor renovations including parking lot repairs and exterior painting. Andrew Ledger, the asset manager, stated, “The shopping center has a tremendous tenant mix made up of national, regional and local retailers. The submarket offers some of Metro Denver’s best demographics that will drive business for our tenants and enable us to keep the high occupancy rates in place. Similarly zoned land is almost non-existent in the Ken Caryl submarket. We are extremely pleased with the purchase of this asset and our relationship with the Quiat Companies and our lender, Guaranty Bank."

Southwestern Strategically Positioning for Rebound in Housing Market

COMMERCE CITY, Colorado – June 2008 – On June 27, Stillwater Investors, LLC and Stillwater Investors II, LLC, affiliates of Southwestern Investment Group, successfully closed on the purchase of 50 finished single family residential lots in the Stillwater subdivision in Commerce City, Colorado. Stillwater, located at the southwest corner of 120th Avenue and Peoria, is a 225 lot subdivision that has been substantially built out with the exception of the lots acquired by Southwestern. Plans call for holding the lots until the housing market accelerates with an ultimate disposition of lots to a homebuilder. Jake Schroeder, the manager for the project stated, “given the purchase price for these finished lots we feel that we are strategically positioned for a rebound in the residential market when that occurs”. The project was purchased from First Community Bank and is a joint venture between internal Southwestern investors and SREP Stillwater Assoc, LLC, an affiliate of JCR Capital.

Question of the Week: What are the effects of the slowdown in residential real estate on land and development opportunities?
Response given by Mark D. Campbell, President of Southwestern Investment Group, Inc.

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DENVER, Colorado – Colorado Real Estate Journal – June 4, 2008 – When considering the effects of the slowdown in the residential real estate market on land and development opportunities in the greater Denver metropolitan area, there are several key factors that come into play and affect both new land development opportunities and existing deals.

The most notable of those factors include decreasing land values, lack of funding in both the debt and equity arenas for such transactions, and the existence of a large gap between seller expectations and a buyer’s ability to meet those expectations. As a result of the foregoing, new land development opportunities must be structured on favorable terms to become viable, and existing deals must be re-evaluated as they become more and more sensitive to market conditions. Buyers/developers are reanalyzing cost estimates and project projections, scrutinizing beds and negotiating costs with third-party consultants, and working to have the most comprehensive development plan.

Due to the slowdown in the market and corresponding “credit crunch,” real land values have decreased. Nonetheless, many sellers have not yet adjusted or changed their selling/asking prices to the current market trends. Accordingly, fewer transactions are taking place. Exacerbating problems and because of the weak residential market, traditional lenders and private equity sources have scaled back their interests in providing funds for residential development projects by lowering loan-to-values or requiring higher rates of return on the investment. These requirements further decrease land values and widen the gap between seller expectations and a buyer’s ability to meet those expectations.

To be successful and until the market dramatically improves, as we move into the next cycle of land development, new transactions will need to be creatively structured, including a combination of terms that allow buyers sufficient time to entitle projects prior to acquiring them, building into contracts a period of time for possible change I market conditions, re-evaluating and reducing land sale prices, extending closing conditions, applying a variety of applicable and nonapplicable earnest money deposits, sellers providing carry-back financing, and/or creating joint venture type structures between sellers and buyers.

On the subject of existing transactions, deals that once projected strong revenues must be re-evaluated to determine if they are still viable business opportunities. For buyers to continue developing what is now a stressed project, the deal terms may need to be restructured. This often requires a price reduction for the property, an extension of terms to close the transaction later than originally expected, or changing a straight acquisition to a joint venture or partnership project.

Joint venture structures may include a contribution by the seller of all or a portion of the land and its value. The buyer/developer contribution may be all or a portion of the value of the expertise and development costs (oversight, entitlement, paying for third-party costs – such as surveyors, civil engineers, transportation/traffic engineering, utility services analysis, and water and sanitation analysis, zoning, annexation, platting, etc.).

While the slowdown in residential real estate has had an impact on new land development projects and land sale opportunities, it also may have created new opportunities for all parties. While currently very few transactions are occurring, in the near future stressed developers and landowners, responding to stresses and impacts from myriad sources unrelated to the transaction between the seller and buyer/developer (e.g., the mortgage holders on the property), will be required to dispose of property at what buyers/developers see as potentially attractive prices.

Southwestern Affiliate Company Sells 9.6 Acres to Union Pacific Railroad

COMMERCE CITY, Colorado – May 2008 – On May 21, 2008 SW Rosemary, LLC, an affiliate of Southwestern Investment Group Inc., closed the sale of a 9.6 acre property at the corner of 84th Avenue and Quebec Street in Commerce City, Colorado to the Union Pacific Railroad Company. The land was acquired by SW Rosemary, LLC in April, 2006. The sale price of the property was $1,125,000. The brokers for the transaction were Tim Gilchrist and Brian Wilkes of Fuller Real Estate.

Aurora Park Holdings Closes on Premium Property Available for Attracting Retail Tenants

AURORA, Colorado – March 2008 – On March18, Aurora Park Holdings, LLC, an affiliate of Southwestern Investment Group, successfully closed on the purchase of the Aurora Park Shopping Center in Aurora, Colorado. Aurora Park is a 35,971 square foot retail center at the northeast corner of Alameda Avenue and Sable that is currently 65% occupied. Plans call for an extensive rehabilitation of the property in order to attract new tenants and fill the existing vacancies. Andrew Ledger, the manager for the project stated, "The center is in an ideal location, across from both the Aurora Mall, the Aurora City Center and the new Centrepoint mixed-use RTD project. This will allow us to attract recognizable retail tenants that otherwise have been unable to find adequate space in the submarket. Additionally, the existing vacancies give us an ideal opportunity for a true value-added retail project." Construction on the site will begin this spring and is expected to be complete by year end. The project is a joint venture between internal Southwestern investors and Somera Capital Management.

Affiliate Company of Southwestern Investment Group Closes on a Retail Project in Kansas

OLATHE, Kansas – March 2008 – Another affiliate of Southwestern Investment Group, Blackbob Investors, LLC, closed on a retail development project in Olathe, Kansas. The 1.85 acre site is an outparcel in the Lowe’s Home Improvement anchored shopping center at the intersection of 138th Street and South Blackbob Road. The site has been divided into two lots, one of which already has an executed ground lease with Arby’s. The second site is currently being marketed for sale to a variety of retail users. The acquisition was funded by a mix of internal and external private investors.

King Soopers Owner Buys Retail Center on South College

DENVER, Colorado – Colorado Real Estate Journal – February 20, 2008 – The company that owns the King Soopers chain purchased a shopping center in the heart of the South College Avenue corridor in Fort Collins.

The Dillon Companies Inc., parent company of Kroger, bought the Kmart Plaza Shopping Center for $8 million. SW Fort Collins LLC, an entity of Greenwood Village-based Southwestern Investment Group, sold the 118,336-sf square-foot property.

While it is presumed King Soopers will open a store at the location at some point, a Kroger spokesman said only that the company is weighing its long-term options for the site. Kmart occupies an 84,000-sf space on a lease that extends through 2011. The lease includes two five-year renewal options at Kmart’s existing rental rate, which has remained flat since the store took occupancy in 1971.

SUGARLAND, Texas – August 2007 – CAP First Colony, LLC, a joint venture between Capmark Equity (formerly GMAC), internal investors of Southwestern Investment Group, and an external investor acquired a 111,675 square foot shopping center located in Sugarland, Texas. The center was formerly occupied by a 68,150 square foot Randall’s who vacated the premises in late 2005. The Randall’s space is sublet to AVG Partners who continues to pay rent but does not occupy the space. The ownership group intends to negotiate a lease termination with AVG Partners, subdivide the Randall’s space, remodel the premises, and stabilize for a sale in the near future. The acquisition closed August 15, 2007 for $13,500,000.

Acreage Bought for Flatiron Meadows

DENVER, Colorado – Denver Business Journal – August 13, 2007 – Colorado real estate developer Southwestern Investment Group Inc. has purchased 367 acres in Erie for its $365 million Flatiron Meadows residential project.

Southwestern Investment acquired the ground through its Flatiron Investors LLC affiliate for undisclosed terms. The land is located at the southeast corner of 111th Avenue and Leon Wurl Parkway.

Southwestern Investment plans 645 lots for single-family homes and 244 townhomes for Flatiron Meadows. The developers plans to set aside 115 acres of open space and trails, possibly including a community clubhouse, and 14.5 acres for a grade school.

Home prices will be in the $450,000 to $550,000 range, according to Southwestern Investment.

The town of Erie approved a preliminary platting of the land in June. The developer expects final platting and engineering work to be finished in the spring of 2008.

Construction at Flatiron Meadows also is slated to begin next year.

Based in Englewood, Southwestern Investment develops residential, retail and industrial real estate as well as land and water. Most of the company's projects are located mostly in metro Denver and the Houston area.

Other local projects range from the Safeway-anchored Willow Run Shopping Center in Westminster, which the company sold in 2002, to The Village in Commerce City. Located at 120th Avenue and Chambers Road, the 17-acre The Village retail center expects to start construction in '08.

Southwestern Investments has several residential and retail projects in the works for Adams County.

Affiliate Companies of Southwestern Investment Group Close Several Significant Area Land Deals

ENGLEWOOD, Colorado – July 2007 – Southwestern Investment Group, LLC of Englewood Colorado has successfully closed on five significant land deals in the northern corridor through their affiliate companies. Affiliate Thornton Investors, LLC closed on a 17-acre parcel of land located in Adams County this past May 2007. The site, which sits at 168th and Colorado Blvd., is planned for commercial retail. “We see this corridor as the next area to see prominent growth,” states Matt Ferlic of Southwestern Investment Group. This project is planned for zoning and annexation into Thornton for a build out and completion timeline of 3 to 5 years.

In June, Oxford Investors, LLC, a second affiliate closed the acquisition of a parcel located at the intersection of Oxford and Federal in the city of Sheridan. Guaranty Bank provided financing. The site presently is occupied by a 2,550 sq. ft. retail building that has become an eyesore for the community. Plans are to construct a new 9,600 sq. ft. in line retail building that will be ready for occupancy in the first quarter of 2008. “This Sheridan neighborhood is in significant need of retail that will serve day traffic,” Ferlic states.

July continued to be an active month for SWIG affiliate Box Elder Investors, LLC as they closed on an Aurora property at the intersection of 56th Avenue and Hudson. The 320-acre parcel is currently zoned in the Northeast Plains District, which constitutes a variety of industrial and commercial use. “The investors for Box Elder will most definitely benefit from this ideal location which sits between the Front Range Airport and DIA,” added Dan Foster of SWIG. North Valley Bank provided 50% of the financing for this transaction.

Also in July, Imboden 128, LLC a partnership between SWIG and private investor Don Finley closed on an 80 acre parcel located on the northeast corner of 128th Avenue and Imboden Road in Adams County. This acquisition is the second of four takedowns structured to occur over a period of three years. Upon the final takedown the partnership will own 320 acres.  The partnership intends to entitle the land through Adams County for future large lot residential development.

On July 18, 2007 SW Buckley, LLC also an affiliate, successfully completed the sale of 31 acres of raw land to an entity owned by Idaho based Discovery Real Estate Services. The parcel is located at the northeast corner of 120th Avenue and Buckley Road in Commerce City, CO and was previously owned by Dale and Sharon Cutler. The purchase of the land was estimated at $3.50 per square foot and will be held for future commercial development. In addition Southwestern Investment Group orchestrated a land swap with the E-470 Highway Authority in which SW Buckley LLC will exchange a multi-use easement for additional developable land along 120th Avenue.

In August, 2007, Osceola South, LLC (a partnership between SWIG and a private investor Don Finley) anticipates closing on 40 acres on East 128th Avenue in Adams county. This acquisition is the third of 4 planned takedowns to occur over a period of several years. Upon the final takedown the partnership will own a total of 160 acres. The partnership intends to entitle the land through Adams County for future large lot residential development.

COMMERCE CITY, Colorado – The Gateway News – June 2007 – Mark Campbell, the President of Southwestern Investment Group, presented a plan to city council on Monday evening that would certainly be a win win for everyone in Commerce City. Mayor Paul Natale and the council were all in agreement that Mark’s ideas for design standards were exciting and very timely as new growth is happening quickly all over the northern range of the city. Mayor Paul Natale charged staff with getting a plan back to city council immediately that will tell them what they need to do to make this happen and not reasons why they would be kept from doing this. A very refreshing change for all in attendance to hear.

Mark pointed out some very enlightening information that highlighted the differences between attractive and unattractive shopping centers. For a shopper, it translates to feeling comfortable, welcome, relaxed, safe, secure and feeling drawn in, a place to really enjoy yourself, a place you don’t want to leave; as opposed to feeling that you just need to get what you came for and get out of there as soon as you can, not a place you would want to linger and even feeling tense.

When developers are able to spend additional dollars to go beyond the minimum design requirements, they can add visual enhancements through public artwork and landscaping. They can enhance lighting with quality above the minimum requirements and use higher quality materials and architectural enhancements.

Public artwork and landscaping can include sculptures, entry monumentation, park benches and tables, bicycle racks, mature trees, and beautiful flower beds. Lighting that goes above minimum requirements enhances the overall aesthetics of a community. Higher quality materials and architecture encourages the use of brick rather than blocks, and encourages the use of artistic patterns as opposed to just plain walls, as well as the use of cantilevered canopies that add visual pleasure and a welcoming atmosphere.

Businesses benefit through this with long term retail commitment, a greater mix of local and national quality tenants. This translates into fewer and shorter vacancies as well as higher sales tax being generated. This will encourage business expansion and promotes new business development. It will draw more customers to the sites and increases sustainability.

Customer benefits include customer appreciation of a much more pleasant shopping experience, a sense of community pride, a higher quality shopping experience, and a larger selection of merchants to choose from.

Commerce City benefits through higher tax revenue generation, taxes will be retained in Commerce City as opposed to being given to surrounding cities such as Brighton, Denver, Northglenn, Thornton and Westminster. Shoppers will shop more at home in Commerce City. This will create expansion of commercial growth as well as satisfying constituents’ expectations and will create sustainability of businesses in Commerce City.

Currently there are successful sales tax rebate programs in several areas in the north metro Denver area and include Thornton, Northglenn, Westminster, and Brighton. All places we go to shop now due to lack of retail in Commerce City. Assistance for developers to upgrade their projects could take several forms. Use tax could be eliminated, rebates could be given on sales tax collections, fees could be reduced, cash incentives could be given, a lump sum payment given, or structured financing up to a predetermined amount over time.

North Range Town Center, a Southwestern Investment Group project, located at 104th Avenue and Chambers Road, is projecting annual sales of over $16,000,000 with sales tax revenue of almost $600,000. To summarize, incentives will help to contribute to development of new businesses and expansion of surrounding businesses. It will result in substantial and long term expansion of new employment and tax base within the city. The program will also encourage the improvement of existing properties and contribute to a diverse mix of business, employment, cultural and retail opportunities.

Right now the northern range is a blank slate, how do you want it to look? We need to listen to the experts such as Mark during this unique timeframe where standards can be set to put the bar higher for our city and make it the greatest place to live and have a business. Thank you Mark for presenting such a common sense approach to a plan that truly will be a win win for everyone involved.

Affiliate Company of Southwestern Investment Group Becomes Whole Foods Landlord

ENGLEWOOD, Colorado – March 2007 – An affiliate of Southwestern Investment Group, Inc., Englewood, CO known as Regency North Retail, LLC. closed on a retail center located at 91st & Metcalf in Overland Park, Kansas on March 23 2007. The building, which was constructed in 2002 is 74,059 sf and occupied by 5 retail tenants, the anchor tenant being Whole Foods Market, a Cinzzetti’s Italian Market Restaurant, a Hawaiian BBQ, liquor store and two available tenant sites. “This particular acquisition provides us an entry into the solid Kansas City market and we are pleased to be associated with a well respected company as Whole Foods Market,” comments Brian Cujé, Principal of Southwestern Investment Group. The property was purchased from Glenwood I, LLC and Glenwood II, LLC for $15,700,000.

Whole Foods Market is an organic foods store chain recognized nationally and internationally for high standards and quality. As part of their growth strategy they are particular about the locations they position their stores in and strive to become an integral part of the community. FORTUNE magazine ranked Whole Foods Market (NASDAQ: WFMI), the world's leading natural and organic foods supermarket, number 5 on its 2007 list of the "100 Best Companies to Work For.

Affiliate Company of Southwestern Investment Group Sets Sights on Milliken Growth

ENGLEWOOD, Colorado – March 2007 – An affiliate of Southwestern Investment Group, Inc., Englewood, CO known as Millikin Investors, LLC. has closed on approximately 80 acres in Milliken, CO located at the intersection of Weld County Road 19 and Weld County Road 44. The property includes 80 acres, including the oil and gas rights underlying the site. Also included in the deal were various water rights including 125 units of Colorado Big Thompson water shares. Milliken Investors, LLC plans to sell the water shares and original farmhouse in 2007 and will lease the mineral rights to an oil and gas operator. “While we believe the potential for residential growth in the Milliken area has huge opportunity for the future, the immediate value of the water, oil and gas rights is an exciting endeavor for us.” states Matt Ferlic, VP of Real Estate Investment, Southwestern Investment Group.

Affiliate Company of Southwestern Investment Group Closes on Fort Collin's Retail Center

ENGLEWOOD, Colorado – March 2007 – An affiliate of Southwestern Investment Group, Inc., Englewood, CO known as Town & Country Investors, LLC.  has closed on a Fort Collins retail center located at 2839 South College Avenue. The building, which sits in the dominant retail corridor of Fort Collins is 100% occupied with 7 retail tenants, the anchor tenant being JoAnn Fabrics, which occupies 65% of the space. “This particular acquisition is a value-added opportunity for us in such a growing community as Fort Collins.” States Mark Campbell, President of Southwestern Investment Group. The size of the property is comprised of one single retail building with six in-line tenants and one anchor totaling 25,210 square feet of gross leasable area.

Construction Begins on a 502 Unit Mini Storage in Gypsum Colorado

GYPSUM, Colorado – January 2007 – SW STOR-N-LOCK #21, LLC, an affiliate company of Southwestern Investment Group, Inc, Englewood, CO has recently closed on a 4 acre property in Gypsum Colorado located just south of Eagle County Regional Airport on Airpark Drive. The proposed facility will be a 502-unit self-storage facility for a purchase price of $1,075,000.

SW STOR-N-LOCK has reached an agreement with McCullough-Jones Properties, LLC, a Utah based limited liability company that will develop and manage the facility under the name STOR-N-LOCK. Alan Jones and Franklin McCullough are 30-year veterans of the storage industry in Colorado, Utah and California and are owners or part owners of 20 other facilities; this being the 21st. STOR-N-LOCK is the largest privately owned storage chain in the intermountain area and manages over 1,000,000 square feet of space collectively.

“In a community such as Gypsum, in Vail Valley, explosive growth is fueling the need for convenient storage space. Property owners are demanding it closer and closer to their homes as they move in and out of their new residences, and then many retain their rental space indefinitely, especially when it is close and convenient,” states Alan Jones of McCullough-Jones Properties.

Commerce City to Grow by 410 New Homes Through Continued Efforts of Southwestern Investment Group

ENGLEWOOD, Colorado – January 2007 – An affiliate of Southwestern Investment Group, Inc., Englewood, CO known as Swink, LLC closed on an 80 acre property in Commerce City, CO located at 96th Ave. & Landmark, in 2006. The parcel will, upon completion, be home to 410 single family detached residential homes with an estimated value of $102.5 million. Final plat approval is slated for February of 2007. In addition to this land transaction, on January 19, 2007, Southwestern Investment Group closed on 375 FRICO ERUs originating from Buffalo Highlands LLC, a partnership managed by Paul Joeckel and Bill Klaess. An ERU is the equivalent raw water dedication for one home in Commerce City.

Pheasant Ridge in Commerce City About to Move Forward on Commercial Development

ENGLEWOOD, Colorado – January 2007 – Southwestern Investment Group, Inc., Englewood, CO recently closed on the last remaining 2 acres of Pheasant Ridge in Commerce City, CO located at the southwest corner of Bridge and Tower Road. The land was purchased from Ryland Homes and Southwestern will re-zone the property for commercial use.

Commerce City Purchases Water Rights Through Relations with Southwestern Investment Group

ENGLEWOOD, Colorado – January 2007 – An affiliate of Southwestern Investment Group, Inc., Englewood, CO known as SW Chambers, LLC. has been instrumental in providing the opportunity for Commerce City to purchase valuable water rights of the Lupton Meadows Ditch Company. The original purchase date of 3/8/04 was a transaction between buyer, SW Chambers LLC and the seller, Heit Family LTD. The transaction involved 101 acres of farmland, 35 acres of which were subsequently subdivided by the buyer. 101 shares of Lupton Meadows Ditch Company water were purchased of which 100 were then sold to the city of Commerce City for $905,000. SW Chambers continues to own 1 share of Lupton Meadows Ditch Company water. On December 16, 2006 Hydrosource Acquisitions, Inc. of Englewood, CO became the buyer of 66 acres, water rights and wells. The final purchase price will be adjusted to the rate of $3,200/a.f. of available water storage. The original contract contemplated 1,265.625/a.f. at $3,200/a.f. at a price of $4,050,000. The anticipated water storage is projected to be 1,119 a/f, but in no event less than 880 a/f of water storage. SW Chambers LLC will continue to control the master gravel lease to mine the site for mineral resources.

North Range Town Center Breaks Ground at the Hub of Commerce City

ENGLEWOOD, Colorado – November 2006 – Southwestern Investment Group, Inc. a Denver metro based land development, investment and management firm is pleased to announce that they have officially broken ground on North Range Town Center, part of a 20 acre parcel of land in Commerce City, CO zoned mixed use. This commercial site will constitute a significant influx of commercial and retail growth for Commerce City. Located at the southeast corner of 104th and Chambers it will bring much needed convenience to the homeowners in nearby neighborhoods such as Reunion. In addition there will be 25 single-family residential lots to be sold to builders.

On hand at the ground breaking ceremony was Commerce City Mayor, Sean Ford, representatives from the project’s construction firm, Hall Irwin, Milliken, CO and David Merritt, Senior VP at AMG National Trust Bank, Englewood, CO whose investors provided a majority of the equity. Mayor Ford stated that this retail center “will greatly enhance the community’s viability and projected growth plan as it is located in the exact center of the 62 square miles of Commerce City” at 104th and Chambers”.

Construction on the first phase is estimated to be complete in the summer of 2007 with a 16,900 square foot retail pad bringing various retail shops to the area. Second phase will constitute the ground lease or sale of 10 commercial pads. "We are presently in negotiations with several banks, fast food franchises, liquor stores, car washes and various service businesses to create a comprehensive retail center,” states Mark Campbell, President Southwestern Investment Group, Inc.

Local Land Developer Secures More Adams County Water Storage

ENGLEWOOD, Colorado – September 2006 – Southwestern Investment Group, Inc. a Denver metro based land development, investment and management firm is pleased to announce that SW-TKO LLC, a SWIG affiliate, has closed on a gravel mining and water storage transaction known as the Lupton Lakes on September 29, 2006. The selling party is a joint venture between Southwestern Investment Group, Inc. and an affiliate of Premier Paving, the largest asphalt contractor in the state of Colorado. The purchase price exceeded $28 million with a future contemplated payment valued at approximately $1.6 million.

The two parties sold the parcel, which totaled 341 acres to a multiple party group spearheaded by Bob Lemke. The buyers were comprised of Denver Water, FRICO, South Adams County Water and Sanitation, Henry Lynn Ditch Company, and United Water and Sanitation. The parcel is expected to produce 32 million tons of aggregate, presently being mined by Lefarge Industries vis-à-vis a royalty lease agreement. After mining, the project will provide for 11,000 acre feet of future water storage for the Fort Lupton area.

Mark Campbell, CEO of Southwestern commented, “This has been a significant project for us to be involved with and we are more than excited by the relationships. We assembled 8 properties over the last two and a half years. We annexed and zoned the property into Fort Lupton and obtained the requisite mining permits from various agencies including the Colorado Department of Minerals and Geology.” In addition Campbell also acknowledged that Civil Resources Inc., headed by Danna Ortiz, as the primary engineer on the project.

ENGLEWOOD, Colorado – September 2006 – Southwestern Investment Group, Inc. a Denver metro based land development, investment and management firm is pleased to announce that High Plains A and M llc, a SWIG affiliate, closed on the large surface water supply transaction with Pure Cycle Corporation on August 31, 2006. This significant transaction, totaling approximately 60,000 acre-feet of senior 1883 water rights in the Arkansas River Valley will provide water and wastewater services to customers in the Denver metropolitan area through the acquisition of the over 21,600 shares of the Fort Lyon Canal Company. As consideration for the water rights, and approximately 17,500 acres of farm land in Bent, Otero and Prowers counties, Pure Cycle will issue High Plains 3,000,000 shares (or 20% of Pure Cycle’s total shares) of restricted common stock and grant the right to receive 10% of the gross proceeds or the equivalent of from the sale of the next 40,000 water taps. This sale will allow Pure Cycle to supply water service to over 180,000 single-family equivalents.

"This sale represents a great combination of assets to serve the residential clients. I’m pleased that we succeeded in doing what was right for the agricultural community on the Arkansas River, the Fort Lyon Canal Company and to continue to enhance the value of these water rights,” states Mark Campbell, President Southwestern Investment Group, Inc. and member of high Plains A and M llc.

"This acquisition is an ideal fit for both parties,” commented Mark W. Harding, President of Pure Cycle. "We welcome the addition of our newest stockholder as a result of this transaction. This transaction aligns the interests of the parties to more effectively develop and manage water supplies in this water short region," concluded Mr. Harding.

The Fort Lyon Canal Company diverts water from the Arkansas River near La Junta Colorado and maintains extends over 100 miles of canals, irrigating 93,000 acres of farmland. The Fort Lyon Canal Company water rights dates back to the early 1880's and its two principal reservoirs Horse Creek Reservoir and Adobe Creek Reservoir, have over 100,000 acre feet of decreed storage rights.

Noteworthy Finances

• Due to a re-capitalization of an existing partnership on a single-tenant retail building located in Aurora, Colorado, Southwestern Investment Group refinanced its existing conduit loan to an attractive $3,600,000 loan with American National Life Insurance Company. The loan closed February 22, 2006 and enabled the new partnership, Alameda/225, LLC, to successfully restructure its previous financing and enhance returns to the partners.
  
• As a very successful land owner and developer, Southwestern Investment Group, Inc. approached First Community Bank with a financing need to acquire 80 acres of land in Commerce City, Colorado. The $2,030,200 loan enabled SW 96th, LLC to close on the property March 21, 2006 and begin the entitlement process for single-family and multi-family lots.
  
• Southwestern Investment Group, Inc. secured an attractive opportunity to acquire a Kroger anchored retail shopping center located in a coastal community of Houston, Texas. The $5,815,000 acquisition loan with CIBC (Canadian International Bank of Commerce) enabled SW Kirkwood, L.P. to successfully acquire the 87,000 square foot shopping center on April 6, 2006.
  
• This New Frontier Bank loan of $340,000, completed in less than 15 days, provided acquisition financing to SW Rosemary, LLC on April 26, 2006. The 10 acres of industrial land will be subdivided into 1-acre lots for future sale to an end user.
  
• New Frontier Bank enabled Southwestern Investment Group to acquire 76 acres of land located in Greeley, Colorado. With the $440,000 loan proceeds, SW Greeley, LLC purchased the land May 3, 2006, and will pursue the necessary approvals required to plat approximately 121 single family detached lots.
  
• SW Chambers, LLC approached New Frontier Bank with a request to place debt on approximately 23 acres of commercial land that the entity owned free and clear in Commerce City, Colorado. The bank provided $2,500,000 of loan proceeds on June 8, 2006. The ultimate goal of the project is to bulk sale to a condo, apartment or retail developer once the market matures.
  
• SW Northrange, LLC, a partnership between Southwestern Investment Group, Inc. and a real estate opportunity fund used financing from Guaranty Bank to facilitate the acquisition of 17.22 acres of land and commence a key phrase of the project that will contain approximately 10 outparcel sites and 16,900 square feet of inline retail located in Commerce City, Colorado. The first phase of the funding closed July 7, 2006 in the amount of $4,328,000 for the land acquisition and horizontal development.
  
• Due to Seller carry-back financing that was maturing, New Frontier Bank extended a $2,000,000 loan to SW Woodmen, LLC to payoff the existing note. The bank underwrote, processed and closed this loan in under 3 weeks. The loan closed on July 17, 2006 and is secured by approximately 14 acres of land located at Woodmen & Union in Colorado Springs. SW Woodmen, LLC is under contract to sell the land to a national homebuilder who will develop multi-family on the site after the closing date that is scheduled for 2007.
  
• An American Equity loan in the amount of $850,000 provided refinancing to SW 290, LP on July 21, 2006. Loan proceeds were used to payoff an existing bank loan that was maturing. SW 290, LP owns 3 outparcels located at Highway 290 and Jones Road in Houston, Texas. This key piece of real estate has been under the same ownership since 2001. The long term goal is to hold for investment.

ENGLEWOOD, Colorado – July 2006 – Southwestern Investment Group, Inc. a Denver metro based land development, investment and management firm is pleased to announce that they recently closed on a 17 1/2 acre parcel of land in the city of Brighton Colorado. This parcel, Pheasant Ridge will be the future site of a master plan community of 67 single-family residential lots and future commercial sites. This sale will allow Southwestern Investment Group to support the growth of the Commerce City/Brighton area with quality, responsible development.

"This sale was particularly successful for us as we were able to purchase with cash outright, quickly and efficiently with no financing costs associated,” states Mark Campbell, President Southwestern Investment Group, Inc. Campbell adds that through the diligent efforts of Southwestern’s team, Rhys Duggan, Senior VP of Development, Brian Cujé, Principal, and Tom Swan of their Houston team, they were able to provide the seller, Ryland Homes, Inc. with a substantial sale. The property is located on the southwest corner of Bridge Street and Tower Road.

ENGLEWOOD, Colorado – July 2006 – Southwestern Investment Group, Inc. a Denver metro based land development, investment and management firm is pleased to announce that their affiliate company, Denver Wells, LLC was recently granted permits for construction and re-drilling of four Denver Basin wells owned by Denver Wells and one additional well owned by a third party. Construction began on the first well, Webber #1, in the spring of 2006 and as of July water is flowing to the Platte River. The four wells will yield approximately 2000 acre feet per year at a rate of 300 gallons per minute.

"The water from these aquifers is some of the purest in the area – used in bottled water by manufacturers in the area and even Denver’s historic Brown Palace Hotel,” states Mark Campbell, President Southwestern Investment Group, Inc. Campbell adds, “It was necessary for us to acquire several easements from private parties and negotiate a carriage agreement with the City and County of Denver to make this happen. But the final result is that we are proud to be providing water for industrial, commercial, domestic, irrigation, fire fighting and municipal use.”

This first well is located just north of I-70 near the National Western complex and is flowing water to the Platte River via an abandoned storm sewer. The remaining sites are expected to be completed by spring of 2007.

ENGLEWOOD, Colorado – July 2006 – Southwestern Investment Group, Inc. a Denver metro based land development, investment and management firm is pleased to announce that they recently closed on a 23 acre parcel of land in Commerce City, zoned mixed use. This sale of land that was annexed and zoned commercial will constitute a significant influx of commercial and retail growth for Commerce City. Located at the southeast corner of 104th and Chambers it will bring much needed convenience to the homeowners in nearby neighborhoods such as Reunion. In addition there will be 25 single family residential lots to be sold to builders.

Construction is estimated to begin late summer 2006 with a 16,900 square foot retail pad bringing various retail shops to the area. Second phase will constitute the ground lease or sale of 10 commercial pads. "We are presently in negotiations with several banks, fast food franchises, liquor stores, car washes and various service businesses to create a comprehensive retail center,” states Mark Campbell, President Southwestern Investment Group, Inc. Campbell adds, “This is our niche to develop responsibly for the success of the communities we invest in as well as the population they serve.”

ENGLEWOOD, Colorado – May 2006 – Southwestern Investment Group, Inc. a Denver metro based land development, investment and management firm is pleased to announce that High Plains A and M llc, a SWIG affiliate, recently sold a large surface water supply totaling approximately 60,000 acre-feet of senior 1883 water rights in the Arkansas River Valley. The buyer, Pure Cycle Corporation, will provide water and wastewater services to customers in the Denver metropolitan area through the acquisition of the over 21,300 shares of the Fort Lyon Canal Company. As consideration for the water rights, and approximately 17,500 acres of farm land in Bent, Otero and Prowers counties, Pure Cycle will issue High Plains 2,950,000 shares of restricted common stock and grant the right to receive 10% of the gross proceeds or the equivalent of from the sale of 40,000 water taps. This sale will allow Pure Cycle to supply water service to over 180,000 single-family equivalents

"This sale is the culmination of many years of hard work to ensure the right company would acquire this valuable water. We needed to do what was right for the agricultural community on the Arkansas River, the Fort Lyon Canal Company and to continue to enhance the value of these water rights,” states Mark Campbell, President Southwestern Investment Group, Inc. and member of high Plains A and M llc. Additionally, Campbell adds that Pure Cycle will work with the newly created Colorado Inter Basin Compact Committee (the "IBCC"), in cooperation with the Colorado Department of Natural Resources, water providers from across the state, environmental and recreational interests to find creative solutions to maintaining farm operations through improved agricultural efficiencies, annual crop rotations and other innovative ideas to allow a portion of the water to be used in metropolitan areas, while continuing to maintain or enhance the local farming interests.

"This acquisition is an ideal fit for both parties," commented Mark W. Harding, President of Pure Cycle. "The addition of a large amount of senior surface water to our aggregate portfolio enhances Pure Cycle's service capabilities and increases our capacity to supply water. Further, the structure of this transaction aligns the interests of the sellers with that of Pure Cycle, in a way which will greatly benefit all our stockholders," continued Mr. Harding.

The Fort Lyon Canal Company diverts water from the Arkansas River near La Junta Colorado and maintains over 100 miles of canals, irrigating 93,000 acres of farmland. The Fort Lyon Canal Company water rights date back to the early 1880's and its two principal reservoirs Horse Creek Reservoir and Adobe Creek Reservoir, have over 100,000 acre feet of decreed storage rights.