la Frontera In the News

FOR IMMEDIATE RELEASE

Contact: Scott Schroeder, Corporate Marketing Director
Developers Diversified Realty
(216) 755-5500

DEVELOPERS DIVERSIFIED REALTY AND DAVID BERNDT INTERESTS ANNOUNCE THE GRAND OPENING OF LA FRONTERA VILLAGE

CITY OF ROUND ROCK INTERSECTION LAYS CLAIM AS BEING "THE SALES TAX CAPITAL OF TEXAS"

Round Rock, Texas - - October 11, 2000 - -Cleveland, OH based Developers Diversified Realty (NYSE:DDR) and David Berndt Interests (DBI) of Irving, Texas will host the official grand opening event for La Frontera Village, an 809,748 square-foot shopping center located within La Frontera, a 328-acre mixed-use development at the northwest corner of FM 1325 and I-35 in Round Rock tomorrow, October 12, 2000. The event will be held on-site and will feature a ribbon cutting ceremony and brief program that will include remarks from DDR, DBI and La Frontera officials and several city and county dignitaries including Round Rock City Manager Bob Bennett and Williamson County Commissioner Mike Heiligenstein.

The project - the first retail portion to open within the overall La Frontera development -- elevates Round Rock to a major new level in retail shopping bringing a variety of national retailers to the important I-35 / FM 1325 intersection. Construction began in September 1999 and a large portion of the stores and restaurants are open now or nearing completion. The project's major anchors include a 135,000 s.f. Lowe's Home Improvement, Sam's Club, Circuit City, Office Depot, and Petco plus upscale retailers Barnes & Noble, Bed Bath and Beyond, Pier One, Old Navy and Ulta III.

"The impact of La Frontera Village on the local economy has been phenomenal. In addition to the construction-related jobs it has provided, once it is completed it will create over 2,200 new full and part-time jobs for our community. Also, it is estimated that the center will bring in more than $5 million a year in sales tax revenue for the city and approximately $1.7 million in property taxes of which $1.2 million goes to Round Rock Independent School District. There aren't many local projects that can make that claim," said Phil Brewer, Round Rock Chamber of Commerce President.

La Frontera Village will also include seven sit-down restaurants in a unique restaurant cluster in addition to a soon-to-open food court area with additional eateries. Already open is TGI Friday's. Logan's Roadhouse Cafe will open later this month with Red Lobster following about a month behind. Other restaurants on the drawing board include Don Pablo's, and an up-scale Schlotzsky's Deli and a "Bread Alone" concept and bakery that will serve breakfast, lunch and dinner. In addition to the restaurant cluster Rock Fish Restaurant, Starbucks, Chipolte Grill, Maggie Moo's and others will soon open. In all, there will be more than 46 new retail stores and restaurants.

"We are thrilled to be celebrating the grand opening of La Frontera Village this month," said David Berndt, DBI principal. "Throughout the entire process, we've had great cooperation from Mayor Stluka and city administrators. They've done an outstanding job and it has paid dividends. We've built a wonderful shopping, dining and entertainment venue for residents of Round Rock, Austin and surrounding communities to enjoy."

"La Frontera Village has all the elements of a successful shopping center. The nation's best retailers, a great location at Interstate 35 and FM-1325 and the continued support of the community and city officials," said Eric Mallory, Senior Vice President of Development for DDR. "Now that the groundwork is in place and stores are opening, residents of Round Rock and surrounding communities have a first-class shopping center that will serve their shopping and entertainment needs for years to come."

According to the City of Round Rock, the Interstate 35 / State Highway 1325 intersection, which includes Dell Computer's Headquarters, La Frontera, Boardwalk, Target, and Garden Ridge Pottery, is the "Sales Tax Capital of Texas" - generating the highest sales tax of ANY intersection in the state.

"We are absolutely delighted with the new level of retail activity in Round Rock, which not only serves our existing 61,000-plus residents, but also adds to the economic vitality of our city and to the ability to attract new and diverse business interests," noted Round Rock Mayor Robert A. Stluka. "Among our current City initiatives are efforts to let major employers know that Round Rock is 'Open For Business' in terms of providing housing, workforce availability, and quality of life services for new and expanded business development. Elevating the level of local retail services is an important part of that mix."

La Frontera Village is the first section to open in the overall 328-acre La Frontera master-planned development. Other activities and uses in La Frontera include a 300-room Marriott Conference Center and Hotel which can already be seen rising just to the east of the retail stores. Also under development are two separate office complexes in excess of 200,000 s.f. each, a 411-unit up-scale, urban apartment project, and numerous other sites and users. La Frontera is a development of 35/45 Investors, L.P. of Austin.

Developers Diversified Realty, a national industry leader in shopping center ownership and management, currently owns and operates 206 shopping centers in 40 states totaling 47.7 million square-feet of real estate. DDR is self-administered and self-managed real estate investment trust (REIT) operating as a fully integrated real estate company.

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