NEWS
Date: January 11, 2007

RALPHS SUPERMARKET AT MARKET LOFTS IN DOWNTOWN LOS ANGELES
ON TRACK FOR JUNE OPENING AS COUNCILWOMAN AND DEVELOPERS
PRESENT “KEY TO THE STORE”

-- Lee Homes to launch sales at Market Lofts on January 27 –

LOS ANGELES – Downtown Los Angeles residents, business and community leaders joined Councilwoman Perry and developers Lee Homes and CIM Group today to deliver the “key to the store” to Ralphs executives. The company will now begin work on the interior of the 50,000-square-foot supermarket that is the retail anchor for Market Lofts, located on 9th Street between Hope and Flower. In response to dramatic growth in the downtown population Ralphs announced that the store, scheduled to open in June, will be one of its premier Fresh Fare concepts.

“Ralphs Fresh Fare and Market Lofts are great additions to downtown’s South Park and brings a much-needed amenity to our downtown neighborhoods. With Grand Hope Park, nearby shops and the new housing, South Park is an attractive neighborhood within the downtown core. The ability for people to walk to the shops or work or use one of the many public transportation options here make this a model for urban life,” noted Los Angeles City Councilwoman Jan Perry.

In addition to the Ralphs Fresh Fare, other ground floor retail and services at Market Lofts include The Coffee Bean & Tea Leaf, Cold Stone Creamery, Robeks Juice, The UPS Store and Quiznos Sub.

Ralphs was founded in downtown Los Angeles in 1873. The first store was a modest 112-foot by 65-foot neighborhood market at the corner of Sixth and Spring streets. The company grew within downtown and expanded to suburban markets along with the population. Ralphs’ return brings the first full-service supermarket to downtown in 50 years.

“We are enthusiastic supporters of downtown and are anxious to open our new store. It is fitting that we should return to our roots and be part of shaping a great urban lifestyle in the heart of Los Angeles,” said Dave Hirz, president, Ralphs.

Rising six stories above Ralphs Market Lofts, developed by Lee Homes in partnership with CIM Group, offer 267 one and two bedroom for-sale, open lofts. Market Lofts residents will enjoy a landscaped courtyard complete with swimming pool and spa, social room with gourmet kitchen, fitness center, screening room and private residents entry. Market Lofts residences range from approximately 695 to 1,588 square feet designed with expansive windows, chic kitchens with stainless steel appliances, stone countertops, Italian cabinetry and a host of contemporary accents throughout.

“Residents at Market Lofts will enjoy living in one of the best locations downtown. In addition to the convenience of the downstairs retail, they are steps from L.A. Live and Staples Arena and other great entertainment and dining venues,” added Jeff Lee, president, Lee Homes.

Market Lofts is the second phase of CIM Group’s five-phase South Village project, a $500 million development bounded by 8th and 9th, Flower and Hope Streets. The first phase was completed in early 2004 with the opening of the 251-unit Historic Gas Company Lofts.

“Our $12 million investment in this project is money well spent on bringing one of the basic amenities needed to create a true community for downtown residents,” said Cecilia V. Estolano, chief executive officer of the Community Redevelopment Agency of the City of Los Angeles. “This new Ralphs supermarket and all the other new retail in this project will go a long way towards making downtown a vibrant, pedestrian-friendly residential neighborhood.”

“In just the past seven years, downtown Los Angeles has added more than 10,000 residents. The city center now has more than 20,000 housing units and 30,000 residents. This is a substantial community that will continue to grow and thrive,” noted John Given, principal, CIM Group.

CIM Group and the Lee Homes have been developing for-sale housing in downtown Los Angeles since 2002 when they offered the first for-sale lofts, Flower Street Lofts. The team also developed the 66-unit Grand Lofts and the hybrid, adaptive reuse of 801S. Grand in which the lower floors were retained as Class A office space while converting floors 12-22 of this to Sky – 132 lofts. Combined, CIM Group and the Lee Homes currently account for approximately 1,600 housing units in the South Park area of downtown Los Angeles.

About Lee Homes: The principals of Lee Homes are in their sixth decade as one of the premier housing developers in Southern California. The firm is an urban housing pioneer with a 20-year track record of developing residential communities in urban infill locations. Currently the company has over $1 billion under construction and in planning.

About CIM Group: CIM Group is an integrated, full service real estate investor with in-house acquisition, development, finance, leasing, and management capabilities. CIM Group directs its efforts towards districts of high population density, including the downtown areas within large cities, smaller "main street" districts within towns and suburban cities, and other locations which lie within the metropolitan areas of the country. Since its inception in 1994, CIM Group has been a leading force in the creation of great streets in the cities of Santa Monica, San Diego, Pasadena, Brea and Hollywood.

About Ralphs: Ralphs Grocery Company was founded in 1873 by George A. Ralphs with a single store in downtown Los Angeles. Today the company operates more than 260 supermarkets from its headquarters in Los Angeles. Ralphs is a division of The Kroger Co., (NYSE:KR), one of the nation’s largest food retailers, based in Cincinnati, Ohio. For more information about Ralphs, please visit our website at www.ralphs.com.