HTHR Hawthorne Finl (MM)

Hawthorne Savings Funds $15 Million Bridge Loan for ConQuest Student Housing EL SEGUNDO, Calif., Feb. 24 /PRNewswire-FirstCall/ -- Hawthorne Savings, F.S.B. ("Hawthorne"), a subsidiary of Hawthorne Financial Corporation , announces today the fundingof a $15 million bridge loan to ConQuest Student Housing for the acquisition and renovation of Campus Court Apartments in Isla Vista, approximately three blocks from the UC Santa Barbara campus. The subject apartment complex, built in 1962, has 96-units in two tri-level buildings arranged in a courtyard-style with two swimming pools at 6672-6690 Abrego Rd. The loan was arranged by Gary M. Tenzer of George Smith Partners, Inc. and funded in just 6 weeks from initial request, including the time between the Christmas and New Year holidays. In 2001 and 2002, Hawthorne funded 5 separate construction loan projects close to the USC campus for ConQuest Student Housing. All projects were completed on time, under budget and were 100% pre-leased. Their properties are managed professionally and provide such key services as parking, security gate and intercom access, satellite television, Ethernet Internet access and a Web site where students can log repair orders, apply for apartment units and check on apartment availability. Isla Vista is a coastal community adjacent to the UC Santa Barbara campus. Completely built-up, the area has not seen new construction in 30 years. ConQuest seeks to expand its investment territory and Campus Court Apartments is a large enough property to make the investment worthwhile. Interior and exterior improvements will include modernizing kitchens, enlarging bathrooms, carpet, new lighting, interior painting, exterior painting according to a new 5-color scheme, raised panel doors -- bringing character and dimension to the buildings. Furthermore, security gates and an intercom system will be added -- a unique feature for the Isla Vista market. ConQuest will increase rents to: $1200 for studios accommodating 1-2 students; $1350 for 1+1 units accommodating 2 students; $2700 for 2+2 units accommodating 4 students; and $3500 for 3+2 units accommodating 6 students. About Hawthorne Savings Hawthorne Savings, F.S.B., an El Segundo, California-based financial institution, and federally-chartered savings bank, was incorporated in 1950 and commenced operations on May 11, 1951. The Bank's 15 full-service retail branches are located in the coastal communities of Southern California, from Westlake Village to Mission Bay in San Diego, with its newest branches located in Baldwin Hills and Irvine. Hawthorne Savings maintains a strong presence in the South Bay region of Los Angeles County and was voted 'Best Bank in the South Bay' for three of the last four years. Hawthorne also specializes in real estate secured loans within the markets it serves, including: 1) permanent loans collateralized by single family residential property, 2) permanent loans secured by multi-family residential and commercial real estate and 3) loans for the construction of multi-family residential, commercial and individual single family residential properties and the acquisition and development of land for the construction of such projects. The Company funds its loans predominantly with retail deposits generated through its fifteen full service retail offices and FHLB advances. For more information, please call 888-TRUE-411 or visit the bank online at http://www.hawthornesavings.com/ . DATASOURCE: Hawthorne Savings, F.S.B. CONTACT: Michelle Menna, Marketing Liaison of Hawthorne Savings, F.S.B., +1-310-725-1866 Web site: http://www.hawthornesavings.com/

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