May 17, 2007 Capital Growth Properties and Madison Marquette Form Midwest Strategic Alliance Will Seek Expansion of Existing 31 Million Square Foot Retail Real Estate Portfolio MINNEAPOLIS, MN (May 17, 2007) Capital Growth Properties, Inc. and Madison Marquette, announced today the formation of a strategic alliance that enables both companies to expand their activities nationally and in the Midwest specifically. The new alliance, Capital Growth Properties Madison Marquette, will seek new investment opportunities while continuing to manage and lease both companies' existing 31 million square foot portfolio of national retail real estate. Madison Marquette will contribute its existing Minneapolis-based operating business and professional team to the new joint venture and will obtain an ownership interest in Capital Growth Properties. Capital Growth Properties will contribute its existing national operating business to the new joint venture and John Nagle, President and Chief Operating Officer of Capital Growth Properties, will manage this new combined Minneapolis-based entity. "Madison Marquette's Minneapolis-based team includes some of the industry's most experienced and talented professionals," said Mr. Nagle. "Their expertise will be a solid foundation for us to grow our property portfolio through new acquisitions and new client relationships," he said. "It is an exciting new partnership that will enhance our ability to provide outstanding service to clients in the Midwest and throughout the country," said Greg Bergan, Executive Vice President of Madison Marquette. With the completion of this acquisition, Capital Growth Properties Madison Marquette will provide asset management, management, development, leasing or accounting services for over 8 million square feet of property. The national portfolio increases to 42 retail properties in seven states, including Alabama, Colorado, Iowa, Michigan, Minnesota, Ohio and Texas. Nagle said he is actively pursuing new acquisitions and third-party management opportunities in addition to current activity in development, leasing and full-service management for retail, office and industrial properties. William Buchalter, Chief Executive Officer of Capital Growth Properties, said, "This alliance enhances our ability to deliver attractive and stable returns to our investors through our national activities and now more specifically, the Midwest," said Mr. Buchalter, "It creates an exciting synergy for both parties, allowing us better geographical coverage and access to expanded resources from both organizations." "We are pleased to now have a dedicated vehicle for sourcing successful new investment opportunities in the Midwest while further enhancing the quality of service we provide to our clients," said Amer Hammour, Chief Executive Officer of Madison Marquette. About Capital Growth Properties Capital Growth Properties, Inc., a private Real Estate Investment Company which owns, manages, acquires and develops retail, office and industrial properties. Through a proprietary methodology, the company works diligently to provide attractive and stable returns for its investors through a diverse portfolio of income producing real estate assets, including retail, office and industrial/light properties in a variety of geographic locations and investment sizes. Principals of Capital Growth Properties have been involved in the development, construction, leasing, management and ownership of more than $500 million of commercial real estate throughout the United States. Further information can be found at www.capitalgrowthproperties.com. About Madison Marquette Madison Marquette is a Washington, D.C.-based investor, developer and operator of retail and retail mixed-use real estate throughout the United States. The company specializes in creating unique retail destinations that respond best to consumer preferences. With regional offices in San Francisco, Los Angeles, Seattle, San Diego, Philadelphia, New York and Ft. Lauderdale, Madison Marquette seeks investment opportunities in growing markets. The company maintains a sophisticated in-house operating capability and oversees 23 million square feet of retail real estate. This diverse national portfolio includes many properties that Madison Marquette manages and leases on behalf of clients. For more information about Madison Marquette, please visit madisonmarquette.com. © 2007 Capital Growth Properties, Inc.