STRATEGY ONE > Volume V > Number 1

STRATEGY ONE > Volume IV > Number 2 > Third Quarter 2006

In This Issue

Asset-based lenders may face new challenges
(Page 2)

STRATEGY ONE
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Transformation of historic hotel to affordable housing is under way

Crews work on improvements to Alexandria’s roof in this mid-December photo.

With permits in place and construction under way, the transformation of the once-proud Alexandria Hotel in Los Angeles into affordable housing for area workers has begun.

The 463-room hotel was acquired in August by Alexandria Housing Partners LP, a limited partnership of Buxbaum Group CEO Paul Buxbaum and Ruben Islas and Jules Arthur of The Amerland Group of San Diego—veterans of the affordable housing industry. The acquisition price of approximately $30 million was financed using tax-exempt bonds issued by the Community Redevelopment Agency of the City of Los Angeles, and the renovation will cost another $14 million.

“Everything is going according to plan,” noted Buxbaum. “All of our permits have been finalized, and construction is starting. We have begun to let out contracts for the rehab work and we’ve finished renegotiating all of the building’s commercial streetfront retail leases.”

The rebirth of the Alexandria Hotel is being closely watched in Los Angeles and elsewhere, since it is an example of private enterprise getting involved to help solve a pressing social issue – the lack of affordable housing for workers. When complete, it will be one of the largest affordable housing projects in Los Angeles history.

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Buxbaum Group announces management changes

Paul Buxbaum The fourth quarter of 2006 brought plenty of changes to Buxbaum Group’s management ranks, positioning the company for a new year of continued strong performance in its core areas.

Paul Buxbaum reassumed the title of president in addition to his duties as chairman and chief executive officer, while Jim Siebersma, the executive vice president and head of the Asset Appraisal Group, took on the added duties of chief operating officer. The changes follow the resignations of David Ellis and Richard Ellis, who left to pursue other opportunities.

In another change, Scott Rusczyk, who joined Buxbaum earlier in the year as director of business affairs, was named vice president-business affairs, responsible for all of Buxbaum Group’s activities, including liquidation, advisory and turnaround engagements, along with investments, mergers and acquisitions. The senior management team is rounded out by Executive Vice President Stevan Buxbaum, who directs the company’s marketing and business development efforts.

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