Inland Retail Acquires Major Ownership in Birkdale Village from Crosland & Pappas Properties

Charlotte, N.C., May 29, 2003 – Birkdale Village, LLC, an entity developed, owned and managed by Crosland, Inc. and Pappas Properties, LLC, announces the sale of a majority stakeholder position in Birkdale Village, a 52-acre, mixed-use Class A development, to Inland Retail Real Estate Trust, Inc. of Oak Brook, Ill. Crosland and Pappas will maintain a continuing economic interest in the project, retain all remaining outparcels and continue to perform the leasing and management functions at Birkdale Village. Terms of the purchase were not disclosed.

When queried about the rationale for the sale, Ned Long, chief financial officer for Crosland, responded, “There is presently a large availability of institutional capital seeking to invest in Class A real estate projects. Additionally, interest rates are at a historic low point. These factors have created favorable pricing for owners of world-class real estate projects. The bottom line is that the current capital market environment created a window of opportunity for us to monetize some of the value we have created.”

Long went on to state, “Crosland and Pappas believe that we have created a meaningful place for people to live, shop, work and be entertained. We are proud of what we have created and want to continue to enhance the Birkdale Village experience. Based on our prior experience with Inland, we know they possess the capital, expertise, commitment and resources to continue to operate Birkdale Village in a manner that will please residents and visitors alike.”

Inland Retail was represented by Steve Sanders, senior vice president, who operates out of the Holmes Beach, Fl., office of Inland Retail.

Inland Retail Real Estate Trust, Inc. is part of The Inland Real Estate Group of Companies (www.inlandgroup.com), which is comprised of independent real estate investment and financial companies doing business nationwide. With 35 years of experience specializing in investment, commercial real estate brokerage, land development, acquisition and mortgage lending, Inland is one of the nation’s largest privately held real estate companies. Inland’s national headquarters are located in Oak Brook, Ill.

Pappas Properties develops and markets residential and mixed-use projects that meet the changing lifestyle needs of the market by utilizing innovative planning and offering exceptional design and amenities that add value to the overall community.

The principals at Pappas Properties each have more than 20 years of experience in real estate, including the development of retail, office, residential, mixed-use properties and master-planned communities. Pappas Properties and its team of professionals provide in-house expertise in multi-use and land development, construction and property management. For additional information, please call either Peter Pappas or Charles Teal at 704-716-3900.

Crosland, Inc. is recognized as one of the Southeast’s leading, privately-held, diversified real estate companies and is active in retail, office, industrial, multi-family and single-family residential real estate, land development and general contracting.

Founded in 1937, the company has since developed, built or managed more than 20,000 multi-family residential units, over 13,500 single-family homes, 35 retail centers, 25 commercial buildings, more than 2,000 acres of commercial property and 110 residential communities in the Carolinas, Georgia and Tennessee.

Headquartered in Charlotte, N.C., Crosland has an office in Raleigh and also operates in Durham, Chapel Hill, Greensboro, Winston-Salem, and Asheville, as well as in Hilton Head, S.C., Augusta and Atlanta, Ga., Nashville, Tenn., and Tampa, Fla. Its current portfolio, representing existing projects and those under development, has a market value exceeding $700 million. For more information, visit the company’s Web site at www.crosland.com.