GH Capital, LLC and Associated Estates Realty Corporation (NYSE: AEC) announce the completion of five substantially renovated apartment homes in Northeast Ohio. The 1,909-unit portfolio consists of HUD subsidized senior apartment properties, including four in the Greater Cleveland area and one in Akron, OH. The five properties are owned by GH Capital, LLC of Sherman Oaks, CA, and managed by Associated Estates Realty Corporation, headquartered in Richmond Heights, OH. GH Capital is celebrating the completion of the properties with many outstanding events, beginning with an Open House at the Euclid Beach properties on Monday, April 4, 2005 from 2 p.m. until 5 p.m. at Euclid Beach Villa. An Open House is also planned at Euclid Hill Villa on Tuesday, April 5, 2005 from 2 p.m. until 5 p.m.

Each property boasts the perfect mix of comfort, care, and convenience in desirable locations. In addition to substantial upgrades to the unit interiors and building systems, GH Capital completed substantial upgrades to the common areas, including installation of 30-45 seat screening rooms at each property, commercial kitchens for contracted meal preparation, library and activity rooms with comfortable seating, staffed computer learning centers with high-speed Internet access, new fitness centers, outdoor picnic areas and other amenities not typically offered or found in HUD-subsidized housing. Construction was completed over a 16-month period with residents in place, through the combined effort of Coldwater Construction, a GH Capital affiliate, and Cleveland-based JAS Construction.

The portfolio includes Euclid Beach Club, located at 123 E. 156th Street, Cleveland, OH; Euclid Beach Villa, located at 125 E. 156th Street, Cleveland, OH; Euclid Hill Villa, located at 100 Richmond Road, Euclid, OH; Forest Hill Terrace located at 14000 Terrace Road, East Cleveland, OH; and White Pond Villa located at 477 White Pond Drive Akron, OH. The five properties range in size from 173 to 559 units and are high-rise apartment buildings.

The property acquisition and renovation was financed though an allocation of nearly $58 million in tax-exempt bonds, representing the largest housing bond transaction in the State of Ohio, and an equity infusion of nearly $25 million through the sale of Low Income Housing Tax Credits.

The owner worked closely with the Ohio Housing Finance Agency (OHFA), which provided the largest allocation of bonds and low-income housing tax credits in one transaction during 2003 for the portfolio, and with the U.S. Department of Housing and Urban Development (HUD) to increase rental subsidies to the projects and ensure affordable housing for senior citizens with low income over a long-term. Financing for the purchase and rehabilitation of the properties was provided by Charter Municipal Mortgage Acceptance Company (CharterMac; AMEX: CHC), one of the nation’s leading full service multifamily finance companies, and equity was provided by affiliate, Related Capital Company.

Commenting on the initial funding, James Spound, Executive Vice President of CharterMac, said, “With no multifamily rental projects planned or under construction in the Northeast Ohio area, CharterMac saw a unique opportunity to invest in what we expect will be among the strongest developments in the area.”

“GH Capital is committed to preserving this housing stock and ensuring that it remains affordable to elderly persons with low income,” added Gregory Perlman, principal of GH Capital. “Our partnership with CharterMac and Related Capital is facilitating this effort in the Cleveland area."

“The goal of GH Capital is to provide more than just affordable housing,” Perlman added. “We strive to provide services and improvements that are typically seen only in market-rate apartments.”

GH Capital is a multifamily real estate development and preservation firm with a primary focus on affordable housing and has substantial experience in the acquisition and preservation of Section 8 properties. GH Capital owns more than 6,000 apartment units throughout the United States, including over 3,000 units in various Ohio communities, with a focus on affordable housing for senior citizens.

Associated Estates Realty Corporation, one of the largest multifamily property managers in the United States, is a real estate investment trust ("REIT"). AEC directly or indirectly owns, manages, or is a joint venture partner in 109 multifamily properties, containing a total of 23,657 units, located in 12 states.

For more information, please contact: Barbara E. Hasenstab, Vice President of Investor Relations & Corporate Communications, by telephone, at 216-797-8798, or e-mail at ir@aecrealty.com. This press release and other corporate information are available through the Company’s website on the Internet at www.aecrealty.com .