Capital Growth Properties, Inc.

April 1, 2008: MINNEAPOLIS -- The Minneapolis Planning Commission last night approved the application for the expansion and renovation of Calhoun Square, the mixed-use retail center located at the intersection of Lake and Hennepin in the heart of Minneapolis' Uptown area. Calhoun Square is owned by a private fund sponsored by BlackRock. BlackRock has engaged Capital Growth Madison Marquette (CGMM) as Calhoun Square's management company and the project developer. The City of Minneapolis' Planning Commission will forward its recommendation to the Minneapolis City Council.

"This is great news for Calhoun Square and for the Uptown Area. We are eager to begin the work of revitalizing this unique Twin Cities' retail center," said John Nagle, CGMM President and Chief Operating Officer.

"Since we purchased Calhoun Square on behalf of our investors, we have been committed to its renovation. Minneapolis' Uptown Area is a great urban neighborhood and we are excited to invest in the revitalization of a shopping center that plays such an important role in its vitality," said Erik Grabowski, Vice President for BlackRock.

In the course of developing the plans for the expansion and renovation of Calhoun Square, CGMM worked closely with community residents and city leaders and was guided by the Uptown Small Area Plan. The goal of the project is to bring vitality to Calhoun Square through the renovation and expansion of the retail and entertainment center. The project will reconnect the urban shopping center with the surrounding neighborhood and make it easier to get into the building and circulate from one retail store to the next. Key features of the plan include opening the building to the sidewalks, widening the sidewalks around the building where new construction permits, adding outdoor pedestrian plazas, developing a market area along Girard Avenue, and redesigning the interior of the shopping center with programmable spaces that can accommodate a range of uses. The retail space will expand from 165,000 square feet to over 200,000 square feet. CGMM is negotiating with a mix of national retailers, local boutiques, and restaurants, including both new and current tenants, to create a unique shopping and entertainment environment that will revitalize the area.

Preparatory work on the site began in February with demolition of the former Music-Go-Round building located at Lake Street and Fremont Avenue. Future construction phases include the addition of two levels to the existing parking structure and the demolition of four of the small adjacent buildings located along Lake Street and Hennepin Avenue, followed by work on the shopping center itself. The actual timeline is contingent on the continuing process of gaining appropriate permits and approvals from the city. Calhoun Square will remain open during the construction process.

About Calhoun Square

Located in the heart of the Uptown area of Minneapolis, Calhoun Square is a, mixed-use center with retail, entertainment and office space. For more than 20 years, it has served the Uptown area by offering a variety of unique retail venues, long-time restaurant favorites and commercial office space. By partnering with a variety of organizations and hosting events, Calhoun Square is a gathering place for the community. For more information, please visit calhounsquare.com.

About Capital Growth Madison Marquette

Minneapolis-based Capital Growth Madison Marquette is a full service real estate company specializing in a strategic array of value-enhancing third party services, including brokerage, construction, development, leasing, management and marketing. CGMM also aggressively pursues acquisitions and joint venture opportunities. It is part of Capital Growth Properties, Inc. (CGP), a private real estate investment company headquartered in Birmingham, Ala. CGP owns, manages, acquires and develops retail, office and industrial properties across the United States. Through proprietary methodology, the company works diligently to provide attractive and stable returns for its investors through a diverse portfolio of income producing real estate assets. CGP's subsidiaries are Capital Growth Madison Marquette and Capital Growth Buchalter. Details at www.CapitalGrowthMadisonMarquette.com.

About BlackRock

BlackRock is one of the world's largest publicly traded investment management firms. As of December 31, 2007, assets under management were $1.36 trillion. The firm manages assets on behalf of institutions and individuals worldwide through a variety of equity, fixed income, cash management and alternative investments products. In addition, a growing number of institutional investors use BlackRock Solutions investment system, risk management and financial advisory services. Headquartered in New York City, the firm has approximately 5,000 employees in 18 countries and a major presence in key global markets, including the U.S., Europe, Asia, Australia and the Middle East. For additional information, please visit the company's website at www.blackrock.com.