Kannapolis, N.C., July 26, 2005 – A team of three developers has unveiled plans to build Kellswater Commons, a commercial development on the Kannapolis Parkway. Merrifield Partners, Crosland, and the partners of Kellswater Bridge Development will invest $80 to $90 million on the project, which will include retail, office/medical space, and townhouses.

The Kannapolis City Council voted to enter into an agreement with the development team last night to jointly build the proposed east-west connector road that will eventually run from Rogers Lake Road west to the Kannapolis Parkway.

“Building an east-west connector road has long been a high priority for Kannapolis. By partnering with the Kellswater developers, we will be able to save significant money in construction costs. This road will be an important bridge between downtown and the southwestern part of Kannapolis.”

Mike Legg, Kannapolis City Manager

According to the agreement, Kellswater Commons will provide the right of way and build the portion of the road that runs across its 61-acre site. Kellswater Commons will spend between $750,000 and $1 million on their segment of the road, with the City of Kannapolis spending $2.1 million to finish the connection to Rogers Lake Road. The new roadway will be one and one-third miles long. By partnering with Kellswater Commons, Kannapolis will reduce its portion of the estimated construction costs by more than 30 percent.

“We are attracted by the projected growth in the area that will be driven by the Kannapolis Parkway,” said James Merrifield, managing partner, Merrifield Partners. “Not only are the prospects for Kannapolis very good from an economic development standpoint, but we’ve also built a solid working relationship with the city that has made the project progress smoothly to this point.”

According to George Kiser, a partner and manager of the Kellswater Bridge Development, the finished development will include 200-400,000 square feet of retail space, 200-300,000 square feet of office/medical space, and 50-150 townhomes.

“The new east-west connector road will greatly benefit access from Western Kannapolis to the Kellswater Commons, the Kannapolis Parkway and I-85,” said Kiser. “Kellswater Commons will provide convenient, quality retail and office space for the entire area. The Kannapolis City Council and Mike Legg are to be congratulated for their vision in providing infrastructure and a visionary land use plan that make Kellswater Commons possible.”

Work on the connector road will begin immediately, which is slated to take two years to complete. Once the road is finished, construction on the commercial development will begin. The entire project should be completed in seven years, and is projected to provide $441,000 in property tax revenues to the City each year along with 1,400 to 1,700 permanent jobs. Kannapolis also anticipates at least $1 million of revenue from utility connection fees and recurring annual water and sewer sales and between $60,000 and $100,000 in new annual sales tax revenues.

In order to complete the project, Kannapolis City Council voted to approve reimbursement resolution that allows the City to spend money on the project immediately and begin making debt payments of $155,000 during FY 2007. By 2008, total new revenues are expected to cover the cost of the debt payments for the new road. Another option would be to use revenue from the Second Creek land sale to pay for all of or part of the project.

About Merrifield Partners

Merrifield Partners, an affiliate of Crosland, is one of Charlotte’s leading office and industrial development and brokerage firms. Operating as Crosland Commercial for many years, Merrifield Partners developed a portfolio of over 2,500 acres of land and 2.5 million square feet of commercial space. For more information, visit www.merrifieldpartners.com.

About Crosland

Crosland Inc. is recognized as one of the Southeast’s leading, privately held, diversified real estate companies and is active in retail, office, industrial, multi-family residential real estate, land development, and general contracting. The company’s breadth of product expertise has enabled it to be a leader in multi- and mixed-use developments.

Founded in 1937, the company has since developed, built or managed more than 25,000 multi-family residential units, over 13,500 single-family homes, 45 retail centers, 40 commercial buildings, more than 2,500 acres of commercial property, and 120 residential communities in the Carolinas, Georgia and Tennessee.

Headquartered in Charlotte, N.C., Crosland has offices in Raleigh, Orlando, Tampa and Nashville and also operates in Durham, Chapel Hill, Greensboro, Winston-Salem, and Asheville, as well as in Greenville and Hilton Head, S.C., and Hot Springs, Va. Its current portfolio, representing existing projects and those under development, has a market value exceeding $1 billion. For more information, visit www.crosland.com.

About Kellswater Bridge Development

Kellswater Bridge Development, LLC is headed by George L. Kiser, Jr., Manager and Donald E. Wagstaff, Jr. CFO. Kellswater Bridge Development is developing a 202 acre mixed use residential and neighborhood town center project. Kellswater Bridge is currently under construction with homes from $200,000 to $500,000 and is located next to Kellswater Commons.