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Press release from Business Wire

U.S. Bank Closes on $43 Million Loan for Artis REIT's Acquisition of Scottsdale, Arizona Office Building

Wednesday, August 29, 2012

U.S. Bank Closes on $43 Million Loan for Artis REIT's Acquisition of Scottsdale, Arizona Office Building08:00 EDT Wednesday, August 29, 2012 SCOTTSDALE, Ariz. (Business Wire) -- U.S. Bank and Artis, a Winnipeg, Canada-based REIT announced today they have closed on a $43 million loan that will finance Artis' acquisition of the MAX at Kierland office building in Scottsdale, Arizona. The 258,312 square-foot, Class-A Max at Kierland building was built in 2008 and consists of consists of six stories of class A office space on 6.7 acres. The building has been Shell and Core LEED-certified and received a 100% Energy Star designation. This is the third deal U.S. Bank has closed with Artis. According to HFF, a commercial real estate capital intermediary, Canadian investors made up 35 percent of all foreign investments in U.S. commercial real estate in 2011. That's up from only 19 percent in 2007. “During the recession, Canadian REITs, which previously didn't have much exposure to U.S. real estate, remained healthy,” said John Besse, EVP of Commercial Real Estate for U.S. Bank. “Today, they are well positioned to acquire new real estate and the best opportunities to add to their portfolios are in the U.S. We are pleased to partner with Artis to execute that strategy.” Since 2004, Artis has executed an aggressive but disciplined growth strategy, building a portfolio of commercial properties in Canada and the United States, with a major focus on Western Canada. Artis' commercial property comprises more than 20.4 million square feet of leasable area in 196 properties. “We continue to be successful in sourcing and acquiring high-quality assets, such as MAX at Kierland, that increase both the size and caliber of our portfolio,” said Armin Martens, CEO of Artis. About U.S. Bank Commercial Real EstateU.S. Bank Commercial Real Estate specializes in providing creative credit and non-credit financial solutions for real estate developers, REITs, and commercial property owners across the United States. U.S. Bank offers such services as construction/development lending, property acquisition lending, refinancing, lines of credit, and syndications. With an employee base of 400 professionals in 24 offices, U.S. Bank Commercial Real Estate builds long-term relationships designed to help American businesses grow. About U.S. BankMinneapolis-based U.S. Bancorp (NYSE: USB), with $353 billion in assets as of June 30, 2012, is the parent company of U.S. Bank National Association, the fifth-largest commercial bank in the United States. The company operates 3,080 banking offices in 25 states and 5,085 ATMs and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. U.S. Bancorp and its employees are dedicated to improving the communities they serve, for which the company earned the 2011 Spirit of America Award, the highest honor bestowed on a company by United Way. Visit U.S. Bancorp on the web at www.usbank.com. About ArtisArtis is a diversified Canadia real estate investment trust investing in office, industrial and retail properties. Since 2004, Artis has executed an aggressive but disciplined growth strategy, building a portfolio of commercial properties in Canada and the United States, with a major focus on Western Canada. Artis' commercial property comprises more than 20.4 million square feet of leasable area in 196 properties. Leasable area by asset class is approximately 19.4 % retail, 37.1 % office and 43.5 % industrial. The portfolio is located 8.4 % in British Columbia, 28.9 % in Alberta, 4.9 % in Saskatchewan, 17.7 % in Manitoba, 15.3 % in Ontario and 24.8 % in the U.S. Nicole Garrison-SprengerU.S. Bank Public Relations(612) 303- 0731, nicole.sprenger@usbank.com