New Mexico Urban Initiatives Fund, L.P.

The New Mexico Urban Initiatives Fund, L.P. is offered through Blumberg Office’s investment management arm. The Fund, which had its initial closing in September 2003, is a closed-end fund seeking equity returns to investors of between 10% to 14%, after fees, through strategic real estate investments in commercial, industrial, multi-family and mixed-use opportunities in New Mexico’s Community Redevelopment Areas.

The Fund defines Community Redevelopment Areas to include redevelopment zones, low and moderate-income areas, Native American tribal lands, and other areas that have been identified by the federal government and/or state and local governments (e.g., downtown or other urban core areas and/or designated redevelopment districts) as areas where public policy supports economic growth.

A Blumberg Office affiliate serves as general partner of and makes all investment decisions for the Fund, and has the flexibility to make any appropriate investment involving equity or debt. Most of the Fund’s investments are in the form of mezzanine loans that may, or may not, have upside participation components. Potential portfolio investments will generally be in partnership with a developer or operator with a demonstrated capacity to manage complex real estate projects.

The Fund is organized and operates as a limited partnership investing directly, or indirectly, through subsidiaries or joint ventures. Investors invest as limited partners in the Fund. As a result of the Fund’s structure and focus on mezzanine loans, foundations and other tax-exempt organizations should generally not incur significant UBTI from of their investment in the Fund. Moreover, because of the Fund’s investment strategy and its focus on Community Redevelopment Areas, commercial banks that invest in the Fund may receive Community Reinvestment Act (CRA) credit for their investments in the Fund.