Capital Growth Properties, Inc.

August 15, 2007: MINNEAPOLIS--(BUSINESS WIRE)-- BlackRock, one of the world's largest publicly traded investment management firms, today announced the purchase of Calhoun Square, a Twin Cities retail icon located in Minneapolis' Uptown neighborhood.

"There is a considerable amount of planning that will need to take place before any real changes in the center are visible," says Erik Grabowski, vice president for BlackRock. "The redevelopment process requires patience, but we are motivated to make things happen."

Effective at closing Friday, July 27, BlackRock - on behalf of its investment clients, became the new, and sole, owner, while Capital Growth Madison Marquette (CGMM), the retail center's current management company, will continue to provide full-service property management and leasing services for BlackRock.

"We are extremely optimistic about the future of Calhoun Square," says Keith Anderson, executive vice president for CGMM. "BlackRock is committed to redeveloping the center to its full potential and enhancing community ties."

"Capital Growth Madison Marquette will remain the property management group because of its local market relationships," says Craig Estrem, managing director for BlackRock. "It's a strong organization, with the necessary expertise to drive the development process forward."

Although it is premature to anticipate development plans for the retail center and adjacent properties, those involved in the purchase agree that all the elements for success exist at the busy intersection of Hennepin Avenue and Lake Street.

"BlackRock will leverage its strengths and build on the knowledge CGMM gained through earlier development plans," says John Nagle, president and chief operating officer of Capital Growth Properties. "It's much too early to know specifics, but, in the near future, we will re-initiate the planning process with the city. It is clear Calhoun Square plays a vital role within the Uptown community, and BlackRock, along with CGMM, will work to fulfill that role."

For the time being, the new owners and existing Calhoun Square management will initiate a dialogue between current tenants, community leaders and local residents to ensure future plans for the center encompass a shared vision.

About BlackRock

BlackRock is one of the world's largest publicly traded investment management firms. As of June 30, 2007, assets under management were $1.25 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.

About Capital Growth Madison Marquette

Capital Growth Madison Marquette is a wholly owned subsidiary of Capital Growth Properties, Inc. Capital Growth Properties, Inc., is a private real estate-investment company, which owns, manages, acquires and develops retail, office and industrial properties. Through a 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, including retail, office and industrial/light properties in a variety of geographic locations and investment sizes. Principals of Capital Growth Properties have been involved in the development, construction, leasing, management and ownership of commercial real estate throughout the United States. Further information can be found at www.CapitalGrowthMadisonMarquette.com.