ASSOCIATED ESTATES TO ACQUIRE 7-PROPERTY PORTFOLIO FOR $324M

RICHMOND HEIGHTS, OHIO — Associated Estates Realty Corp., a REIT based in Richmond Heights, has entered into a definitive purchase agreement for a seven-asset portfolio of Class A apartment communities in the Southeast. Associated Estates will purchase the 1,606-unit portfolio for approximately $324 million. The communities include the 134-unit St. Mary's Square in Raleigh, N.C.; the 215-unit Lofts at Weston in Cary, N.C.; the 295-unit Apartments at Blakeney in Charlotte, N.C.; Alpha Mill Phase I & II, totaling 267 units, in Charlotte; the 345-unit Perimeter Town Center in Atlanta; and the 350-unit Varela in Tampa. The seven assets have an average delivery date of 2012, with three of the assets currently under construction. Six of the seven assets will be acquired free and clear of debt, but The Apartments at Blakeney acquisition will include the assumption of a $28 million loan.