August 9, 2005


TO HOLDERS OF UNITS OF
AMERICAN REPUBLIC REALTY FUND I

     Re: Offer to Purchase 100% of Units for $200 Per Unit

Dear Unit Holder:

     This  letter is to inform you that we have  extended  our OFFER TO PURCHASE
the  limited  partnership   interests  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).

     We are now  offering  to  purchase  ALL  (100%)  of the  Units  and we have
extended the Offer so that it is now scheduled to expire on Thursday, August 25,
2005.

     Please consider the following points:

     o    The Partnership's general partner has stated that it does not plan any
          property  sale  until  the  mortgage  loans  can be paid  off  without
          penalty; i.e., after May 2007.

     o    The Partnership's  general partner has made no  recommendation  for or
          against the Offer,  recognizing that there is no active trading market
          for the Units and Unit Holders do not have a readily  available  means
          of liquidating their investment;  and also noting that "current market
          conditions  and levels of income  and  expense  [of the  Partnership's
          properties]  . . . are likely to change" and a material  change  would
          affect the value of the properties.

     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.

     We urge you to read  thoroughly  the  Offer to  Purchase  and the  enclosed
materials  (which  amend  information  provided to you  previously).  To tender,
please  return your  completed  Agreement of Transfer and Letter of  Transmittal
promptly (blue form) in the envelope provided.

     You will get this letter even if we have already  received your agreement -
if you have already sent in your agreement,  you do not need to do anything else
to  accept  our Offer  unless  we have  separately  notified  you of a  specific
deficiency.  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.

                                        Very truly yours,

                                        EVEREST PROPERTIES II, LLC