Petra Realty Investors' overriding objective is to maximize investor risk-adjusted returns. Risk is limited through thorough financial analysis and due diligence as well as an investment focus on less speculative properties and developments. We are able to achieve our objective of above average returns by acquiring and enhancing the value of properties that have been undervalued due to below market rents, need for renovation, impending re-leasing, or poor management and developing properties in emerging areas where demographic changes will enhance value in the long term.

Distributions to partners will be determined by each partnership agreement. For example, some partnerships and their associated financing may be structured in a manner that allows significant cash flow distribution to partners on a quarterly basis. Other partnerships may be highly leveraged and structured to create capital appreciation with little to no positive cash flow. In general, however, there will be three mechanisms by which investors will achieve returns:

Dividends: Investors will collect quarterly dividend distributions derived from the investment partnership's positive cash flow.

Refinancing Proceeds: Should the partners decide to refinance and "cash out" some of their investment's equity, a one-time refinancing gain will be paid to the partners.

Resale Proceeds: At a time predetermined by the partnership agreement or by a subsequent agreement by the partners, a sale of the partnership investment may be executed. The proceeds of the sale will either be allocated to partners or deferred in a 1031 exchange.

The details regarding termination of a limited partner's interest due to voluntary, or involuntary reasons will be established in the partnership agreement. Generally, voluntary terminations will be based upon a formula or agreement whereby an independent appraiser will determine the investment property's value.

Petra Realty Investors, Inc.
3775 Beacon Ave., Suite 200 Fremont, CA 94538
Phone: 510.474.1001, Fax: 510.474.1002