June 30, 2005 TO HOLDERS OF UNITS OF AMERICAN REPUBLIC REALTY FUND I Re: Offer to Purchase Units for $200 Per Unit Dear Unit Holder: Enclosed is an amendment relating to our OFFER TO PURCHASE up to 1,500 Units of limited partnership interests in AMERICAN REPUBLIC REALTY FUND I (the "Partnership") at a cash purchase price of $200 per Unit, without interest, less the amount of distributions made to you after the date of the Offer and less any transfer fees imposed by the Partnership for each transfer, which the Partnership advises us are $50 per transfer (regardless of the number of units transferred). Please consider the following points, which are discussed in greater detail in the Offer to Purchase that was sent to you previously, as amended and supplemented by the enclosures: o The Offer is $25 per Unit (14%) more than the highest prior third-party offer for Units of which Purchaser is aware (which we made on July 2, 2004), based on a review of public SEC filings. In a private purchase, the Purchaser's affiliate acquired a substantial block of Units for $225 per Unit, in October 2004. o The Partnership's reported 2004 revenue is down by more than $219,000 compared to 2003 revenue and vacancy at its properties has increased. o The Partnership will not be required to terminate before December 31, 2012, unless a majority of the limited partners approve an earlier dissolution or an event occurs that would require a dissolution, according to the Partnership's limited partnership agreement, and, according to the Partnership's public reports, the termination date can be extended if certain events occur. o You may be able to obtain a tax benefit by selling if you have accumulated passive losses that you can use once you have disposed of your investment in the Partnership; you should consult your tax advisor about this possibility. We urge you to read the Offer to Purchase completely and to return your completed Agreement of Transfer and Letter of Transmittal promptly (blue form) in the envelope provided. The Offer is now scheduled to expire on July 18, 2005. For answers to any questions you might have regarding these materials or our Offer, or assistance in the procedures for accepting our Offer and tendering your Units, please contact us at (800) 611-4613 (toll free). Very truly yours, EVEREST PROPERTIES II, LLC