CharterMac Sub Terminates Capri Buy Option

In exchange for a $6 million termination fee from Capri Capital Advisors, CharterMac subsidiary CM Investor LLC is not going to act on its option to purchase a 49% interest in Capri Capital, according to New York-based CharterMac.Also related to this development, Capri Capital has repaid a $20 million loan that CharterMac originally made to it in July 2004 in connection with Capri Capital's recapitalization, CharterMac reported. In a related transaction, Capri Capital is transferring its interest in the investment fund Capri Urban Capital to CharterMac, and the fund will be renamed CharterMac Urban Capital. Capri Urban Capital, whose single investor is the California Public Employees Retirement System, makes investments in multifamily and commercial properties in major urban markets. "Given our recent acquisition of ARCap, a company that has strong relationships with major pension funds, we believe that CharterMac is well positioned to expand our pension fund advisory platform in the near term," said Marc D. Schnitzer, chief executive officer and president of CharterMac. He added that Daryl Carter, who is CEO of CharterMac Mortgage Capital and had been co-chairman and co-founder of Capri Capital, will oversee CharterMac Urban Capital. CharterMac can be found on the Web at http://www.chartermac.com.