Cypress Financial Center Fort Lauderdale, Florida B0788 Brochure PRESS 9/28/05 2:50 PM Page 1

B0788_Brochure_PRESS 9/28/05 2:50 PM Page i

Cypress Financial Center Fort Lauderdale, Florida B0788_Brochure_PRESS 9/28/05 2:50 PM Page 1

Cypress Financial Center

1 Executive Summary B0788_Brochure_PRESS 9/28/05 2:50 PM Page 2

2 Introduction Ideal Location and Superior Amenities Jones Lang LaSalle, as the exclusive marketing advisor to Florida Ideally located at the intersection of Interstate 95 and Cypress Office Property Company (“Owner”), is offering for sale in a single Creek Road, Cypress Financial Center has the best signage and all cash transaction, the Owner’s 100% fee simple interest in best access to and from I-95 of any building in south Florida. The Cypress Financial Center located in the Cypress Creek submarket Property is just 1.5 miles away from the Fort Lauderdale of Fort Lauderdale, Florida (the “Property”). The offering consists Executive Airport and less than 9 miles away from the Fort of an 83% occupied, eleven story trophy Class A office building Lauderdale Hollywood International Airport (FLL). In addition totaling 198,680 sf and 4/1000 covered parking in an adjacent six to access, the Property’s proximity to the Interstate is also a draw story garage. Built in 1988, Cypress Financial Center is the finest to prospective tenants seeking high-exposure building signage, office building in Cypress Creek, one of the finest in suburban Fort which can be seen for miles from both the southern and northern Lauderdale, and boasts the most optimal access to and visibility approach. The Tri-Rail commuter rail system is directly across from Interstate 95 of any office building between Miami and Palm North Andrews Avenue, linking the tri-county area of Broward Beach. No other building in South Florida combines this quality Counties, Miami-Dade and Palm Beach Counties. The 72-mile and highway access, making it not only the first choice, but the system has 18 stations along the South Florida coast and connects only choice for discriminating tenants. to the Metrorail in Miami. Thus, the building offers all of the amenities of a Miami or Ft. Lauderdale CBD building, but with Strong Credit, Bond-Like Income Stream more covered parking and better visibility from and access to Cypress Financial Center’s seven largest tenants account for over major transportation nodes and bedroom communities. 70% of the Property’s net rentable area and nearly 85% of the Just minutes away is the Cypress Creek Station Shopping Center, total leased area. This creditworthy group, of which none expire a 230,000 square foot retail mall, which includes a sixteen screen before December 2009, provide income security and relative ease theater as well as a multitude of dining and shopping options. in management for a new owner of the Property. Within a mile of the Property are the Marriott, Sheraton Suites and Westin hotels, together totaling nearly 900 rooms. CYPRESS FINANCIAL CENTER’S LARGEST TENANTS Tenants RSF % of Total Expires Cypress Financial Center tenants find that the surrounding area Altadis U.S.A., Inc. 37,128 18.7% 4/30/13 provides “one-stop shopping” for all their day-to-day needs, not Brown & Brown, Inc. 30,044 15.1% 9/30/10 unlike Downtown Fort Lauderdale, but they have the added benefit CITCO Technology Mgmt, Inc. 19,211 9.7% 12/31/09 of more parking and lower rents relative to Downtown. Cypress Financial Center is one of the few suburban Fort Lauderdale office Tarragon South Development 19,072 9.6% 1/31/16 buildings that boasts a 4.0 per 1,000 covered parking ratio and is Ace Mortgage Funding, Inc. 12,302 6.2% 10/31/10 the only Class A building between Miami and Palm Beach with this Metropolitan Life Insurance Co. 10,734 5.4% 3/31/10 optimal combination of highway access and signage. Marcus & Milichap Real Estate 10,613 5.3% 6/30/11 Total 139,104 70.0% B0788_Brochure_PRESS 9/28/05 2:50 PM Page 3

Cypress Financial Center

3 Strong Economy and Market Having grown more than 5% in the past year, the Fort Lauderdale economy is the strongest of any major city in Florida and was the seventh fastest growing MSA in the country from 2002 through 2004 in terms of employment growth. Employment growth in Ft. Lauderdale has historically been higher than in the U.S. and this is expected to continue over the next several years. The unemployment rate remains below both the state and national rates at 4.5%, pointing to the economy’s strength. 15,400 jobs were created in 2004, and 27,000 are expected to be added in 2005, with an increase in payrolls of 3.7%. In 2006 and 2007, the business services sector, the primary driver of office space demand, is expected to continue to provide the strongest growth. This growth trend is projected to increase steadily over the next five years creating a strong demand for office space in the coming years.

Relative Employment Performance (1991 = 100) 170 160 150 140 130 120 110 100 90 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09

DataBuffet® MSA code: DMFOT U.S. FT. LAUDERDALE

Strong Trending Market fundamentals Ofﬁce Vacancy: Suburban Ft. Lauderdale vs. U.S.A. Lehman Brothers recently ranked Fort Lauderdale among the top 25.00% ten ofﬁce markets in the country, with respect to projected year- end 2006 vacancy. The vacancy rate has been rapidly declining in 20.00%

Fort Lauderdale since 2002 and is projected to continue to do so 15.00% through 2008. In fact, Fort Lauderdale is expected to reach single 10.00% digit vacancy in 2007, at least two years before the U.S. market as a whole. This sets the stage for a period of rapidly rising rents in 5.00%

the next few years. 0.00% 02 03 04 YTD 05E 06E 07E 08E Vacancy (Suburban) USA Vacancy Better “Value” Compared to Downtown Ft. Lauderdale for Class A Tenancy The Property offers tenants a superior combination of lower occupancy costs, access to amenities and quality of work life compared to the business hub of the area: downtown Ft. Lauderdale.

OCCUPANCY COSTS AND QUALITY OF WORK LIFE Ft. Lauderdale CBD Cost/SF Cypress Financial Center Cost/SF Occupancy Cost Gross Rent $29.00 $26.60 Parking 2/1,000 Covered $2.00 4/1,000 Covered $0.00 Total Occupany Cost $31.00 $26.60

Quality of Work LIfe Rush Hour I-95 Access 10-20 Minutes 1 Minute Access to Tri-Rail None 3 Minute Walk Access to Executive Airport None 3 Minute Drive Highway Signage None Yes Access to Retail Yes Yes Executive Summary B0788_Brochure_PRESS 9/28/05 2:51 PM Page 4

4 Leasing Momentum Dramatic Near and Mid Term Upside Cypress Financial Center is beneﬁting from a rapidly improving Cypress Financial Center affords the core investor an attractive leasing market, as evidenced by a surge of leasing activity over opportunity with low risk due to its high contractual revenue in the past 13 months. New and renewal leases commencing at the the ﬁrst few years of ownership. With little rollover, a new owner Property since August 2004 total over 93,000 square feet, nearly can dedicate full effort to leasing the remaining vacant space. half of the Property’s net rentable area. Embedded within the vacancy is dramatic upside potential, further supported by mid-term rollover as the market continues Near-Term Income Security to tighten. Vacancy in Fort Lauderdale has been rapidly declining amid Value Creation Zone robust job growth, setting the stage for a period of rapidly rising $ 8,000

rents in the next few years. Cypress Financial Center’s rent roll $ 7,000 boasts an excellent rollover schedule. Excluding current vacancy, $ 6,000 less than 12,000 square feet expire during the three and half year $ 5,000 Value Creation Zone period ended December 2008. This contractual income element $ 4,000 (Revenues 000’s) provides a ﬁnancial bridge to what will be the height of the $ 3,000 leasing markets in 2008 through 2010. $ 2,000 $ 1,000

$0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Value Creation Zone Lease Expiration Schedule Contractual Revenue

75,000 100%

80% 50,000 60%

40% Percent Square Feet 25,000 20%

0 0% Vacant MTM 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Interstate 95 Access B0788_Brochure_PRESS 9/28/05 2:51 PM Page 5

Cypress Financial Center

5 Strong Supply Constraints Strong NOI Growth Due to the lack of prime land available in Cypress Creek and the A summary of the Property’s projected financial performance is rising costs of construction, very little development has occurred as follows: in the submarket over the last few years. The scarcity of land is further compounded by competition from residential and retail FINANCIAL PROJECTION SUMMARY (000’S) developers, who typically can pay more for land than office CY Ending December 31 2006 2009 2012 2015 developers. The Florida Department of Transportation, which Total Revenues $4,924 $5,881 $6,816 $7,536 owns the Park and Ride lot adjacent to the Property, is in Total Expenses $2,007 $2,222 $2,439 $2,660 discussions with a local developer who has proposed a residential NOI $2,917 $3,659 $4,377 $4,876 and retail mixed-use project for the site. As such, no additional competing office space will be built here. Given these factors, it is estimated that Cypress Financial Center would cost approximately $280 per square foot to reproduce today, requiring construction rents significantly above current market rates. Executive Summary B0788_Brochure_PRESS 9/28/05 2:51 PM Page 6

Building Interior B0788_Brochure_PRESS 9/28/05 2:51 PM Page 7

Cypress Financial Center

7 Property Description B0788_Brochure_PRESS 9/28/05 2:51 PM Page 8

8 Overview Cypress Financial Center is an eleven story, Class A trophy ofﬁce Lauderdale Executive Airport, and less than 9 miles away is the building located in the Cypress Creek submarket of Fort Fort Lauderdale Hollywood International Airport (FLL). This Lauderdale, Florida. The net rentable area totals 198,680 location, which offers the best visibility and access, gives Cypress rentable square feet, including 1,907 square feet of ground ﬂoor Financial Center a notable advantage among other buildings in retail space. its submarket.

Adjacent to Cypress Financial Center is a six-story structured The Office Building garage providing 785 spaces with 10 designated for handicap Layout usage by Property tenants and visitors. The Property was built in The core of the building is located in the center of each floor and 1988 and acquired by Florida Office Property Company in 1999. features functional floor plates. This unique design offers tenants a multitude of views, including unobstructed views of Downtown The Property was designed by 3D/International, a Houston, Texas Fort Lauderdale. The ground floor contains the lobby, café and based architecture firm that has 14 offices throughout the United sundry shop, and office space. Four passenger elevators with one States. 3D/I has designed many high profile buildings across the designated as freight/passenger elevator in the building provide United States, Southeast Asia and the Middle East. access to the office space on the 1st through 11th floors. All common areas have been renovated with new wall coverings, Location 2x2 ceiling grids and carpet. Situated within the important Cypress Creek submarket, the Property’s location provides it with a distinct competitive Amenities advantage. Cypress Financial Center is located at 5900 North Excellent tenant amenities include the proximity of multiple Andrews Avenue at the intersection of North Andrews Avenue retail centers, numerous sit-down and take-out restaurants, and Interstate 95, Fort Lauderdale’s major thoroughfare. The Tri-Rail station and a diverse range of hotels. Within walking Property boasts excellent frontage along the Interstate, and distance are four banks, six hotels and ten restaurants. On-site provides easy access to I-95 South via the on-ramp located amenities include an ATM, lobby café and sundry shop, and adjacent to the parking garage. Just 1.5 miles away is the Fort car washing services.

NW 60TH STREET Signage Cypress Financial Center is the most highly visible Cypress Creek ofﬁce building from

POND Interstate 95. Signiﬁcant value can be created through the licensing of signage space on the NW 60TH STREET building and garage as well as on the exterior monument sign at the entrance to the Property.

1 SStorytory SStructuretructure

6 STORY PARKING FACILITY

R T H

A N D R E W

A V E N U E

CYPRESS FINANCIAL CENTER SITE LINE

NOT A PART OF OFFERING. OWNED 95 BY NAUTICAL HOME FURNISHINGS.

PART OF OFFERING. GROUND LEASED TO NAUTICAL HOME FURNISHINGS SUBJECT TO LESSEE’S PURCHASE OPTION. Site Plan B0788_Brochure_PRESS 9/28/05 2:51 PM Page 9

Cypress Financial Center

9 Construction Detail Mechanical Detail Structure Vertical Transportation The office tower is an 11-story structure, 240 feet long by 90 feet Four high-rise Schindler G.M.G. geared type passenger elevators wide. All framing is poured-in-place concrete. Floor slabs are that are capable of traveling 350 feet per minute. Two of the high- supported by poured concrete steel reinforced purlins and flat rise elevators have a weight limit of 3,500 pounds, while the other concrete reinforced beams, which are themselves supported by two are rated at 3,000 pounds. The two garage passenger elevators square poured-in-place columns. The building envelope consists are Schindler hydraulic type elevators capable of traveling 150 feet of pre-cast concrete panels spanning from one concrete column to per minute. another. The balance of the exterior wall consists of horizontal Heating, Ventilation and Air Conditioning bands of double paned, tinted glass and aluminum window frames. Air conditioning is provided by a multi-zoned variable volume Roof (VAV) system with pneumatic thermostat controls. Each floor is The main roof was installed in 1993 and consists of a concrete serviced by approximately fifteen VAV boxes with nine VAV boxes deck, vapor barrier, 1.3 inches of polyisocyanurate insulation, 0.5 on the perimeter. The source of the air conditioning is two 260 ton inch thick perlite insulation, base sheet, and a Paradiene 20/30 FR Trane centrifugal chillers. Each floor is equipped with a Trane air membrane specification by Siplast. The Paradiene 20/30 FR handler, for temperature and humidity control. The Evapco roofing membrane is a 2-ply SBS modified bitumen, with granular cooling tower, which was replaced in 2004, is located on the fifth surfacing on the top ply. floor of the garage.

Floor Specs Water Floor plates average 18,819 rentable square feet. The elevator core Domestic water is supplied to the building from the 60th Street runs through the center of the building, with two banks of two side via a four inch water main, where it is piped through a passenger elevators facing each other north and south. The slab- backflow preventer and then to the pump room, where pressure is to-slab height is 15'-0'' for the 1st and 2nd floors and typical floors boosted from 65 p.s.i. to approximately 115 p.s.i. by two pumps, are 13'-0'' inches, with the finished ceiling height measuring 9 feet variable speed drives and a control panel and a series of pressure on all floors. Floor loads are 50 pound live uniform load reducing valves. Water for the tenants and restrooms is piped per square foot. The floor loss factors are 15% and 10% for through core restrooms via the central wet column. multi- tenant and single tenant, respectively. Electricity Loading Dock The building’s electric service rating is 480/277 volts, 3 phase, and The 5 bay loading dock is located on the north side of the building 4 wire. There is one electric/phone closet on each floor next to the under the parking garage and can accommodate delivery vehicles mechanical room which contains power distribution panels and up to 13'-6'' in height. data/voice terminal blocks for tenant electrical services. In 1993 the existing lighting system was retrofitted to a more energy Entrances conservative lighting system by incorporating T-8 fluorescent There are three sets of double doors leading to the main lobby bulbs with electronic type ballasts. entry with one directly leading from the parking garage elevators. The loading dock has two entrances into the building. All entrance Telecommunications doors are on key access which automatically unlock during Cypress Financial Center has fiber-optic connections that have business hours. been installed by Bell South. Bell South manages the lines coming into the building and must therefore, be contacted for all fiber- Suite Entrances optic and regular telephone communication requirements. This All entrances to individual suites are accessible through interior arrangement with Bell South allows the Property to make available corridors with standard ADA building signage. the latest communication technology. Each floor has its own phone room, where these communication services are terminated, which Restrooms allows the provider to easily install components or upgrade to the Women’s and men’s restrooms have been updated and are existing system thereby utilizing the latest technology. handicap accessible. Property Description Property B0788_Brochure_PRESS 9/28/05 2:52 PM Page 10

10 Life Safety All floors are fully sprinklered with hose connection standpipes in Total capacity is 785 spaces,representing a ratio of approximately cabinets at both stairwell entry points. The garage is fully 4.0 per 1,000. Certain tenants are entitled to reserved parking per equipped with stand pipes that feed fire hoses that are mounted at their lease or pursuant to a separate parking license agreement. each stairwell. The building is equipped with a 100 h.p. Patterson Such entitlement and associated revenue is detailed in the rent roll. pump capable of pumping 100 gallons of water per minute. Nautical Furnishings Security Ground Lease The Property employs manned security in the lobby and parking Adjacent to the parking garage is a one story structure that is garage and an electronic key card system monitors access to the currently occupied by Nautical Home Furnishings, Inc., a retailer building and four elevators after normal business hours. In specializing in nautical items for the home and business. The addition, floors 3, 5, 10 and 11 have electronic access control. building and tract of land (which are detailed on the site plan) are owned by Nautical Home Furnishings and not a part of this Emergency Power offering. A small non-contiguous parcel totaling approximately A 400-kilowatt Cummins diesel engine-driven generator provides 3,765 square feet is included as part of the offering (see site plan). emergency power for the emergency lighting circuits on all floors Nautical Home Furnishings, Inc. is currently paying $2,000 per and in the stairwells, the fire alarm panel and associated life safety year under the ground lease for a portion of the non-contiguous equipment, the fire pumps and one elevator. The transfer switch is parcel (2,824 square feet) which is set to expire in July 2011. located in the main electrical room and is rated 600 amperes at 277/480 volts. The generator is fed by a 550 gallon above-ground • The tenant has five automatic, five-year renewal options storage tank located on level 1 of the loading dock. remaining at fair market value. If the tenant does not wish to renew the lease, notice must be provided one year prior The Garage to expiration. Six Level Parking Structure A 6-level parking garage located adjacent to the Property consists • The tenant has a termination option with 90 days notice. of a precast and poured-in-place concrete reinforced system, open to the elements. An enclosed climate controlled walkway on the • The tenant has a purchase option on the ground leased parcel ground floor connects the building to the garage, where two (see site plan), during the last year of the primary term and all passenger elevators provide access to levels 1-5 of the parking renewal terms of the lease. The purchase price varies depending deck. The garage is open Monday through Friday 6:00 a.m. until on when the option is exercised. 9:00 p.m. with 24 hour access to the first level seven days a week. The analysis assumes the ground lease payments continue over the entire life of the analysis pursuant to the assumptions detailed in the financial section of this offering memorandum.

View of Ocean from Tenant Space B0788_Brochure_PRESS 9/28/05 2:52 PM Page 11

Cypress Financial Center

11 Market Overview Bryant

Lake Okeechobee 98 809 441 704 Belle Glade 880 PalmPalm BeachBeach WWestest PPalmalm BeachBeach InternationalInternational AirportAirport

Lake Worth

npike

u T

Florida Florida Boynton Beach Arthur Marshall Loxahatchee 806 Delray Beach Wildlife Reserve 95

Sandalfoot 808 Boca Raton Cove 441

Margate 1 Pompano Beach

Cypress Financial Center FFtt LLauderdaleauderdale EExecutivexecutive AAirportirport 75 FortFort LLauderdaleauderdale

FFtt LLauderdaleauderdale HHollywoodollywood IInternationalnternational AAirportirport Hollywood

Atlantic Ocean Opa-LockaOpa-Locka 27 AirportAirport 95

9 Miami Beach 826 Hialeah MiamiMiami IInternationalnternational 41 AAirportirport MiamiMiami

Tamiami B0788_Brochure_PRESS 9/28/05 2:52 PM Page 12

12 Broward County Overview Broward County encompasses approximately 1,320 square miles the next 5 years, ranking 33 out of 378 fastest growing markets in in Florida’s Southeast region and is bounded by the Atlantic the nation. The growth rate in Fort Lauderdale has historically Ocean on the east, the Everglades on the west, Palm Beach doubled that of the U.S., and is projected to continue to do so. County to the north, and Miami-Dade County to the south. The Everglades on the west and the Atlantic Ocean on the east create The population is becoming increasingly younger and diverse natural boundaries for the county. Comprised of 30 due to migration and the aging of the baby boomer generation. municipalities and 28 cities, the county is divided by State Road The share of population age 65 and older dropped from nearly 84 and the Sawgrass Expressway. 20% of the total population in 1990 to just over 14% in 2005.

The eastern portion of the county is concentrated with The result is a larger labor pool from which companies in and residential and commercial development, since the western around the area can draw and furthermore should attract new portion of the county contains approximately 780 square miles employers to the market. of environmentally sound conservation area. Broward County enjoys a consistently warm climate, with an average temperature Population Growth Rate of 76 degrees in January, and 90 degrees in July. 3.00% Population 2.50% 2.00% Broward County’s population has experienced steady growth 1.50% over the past 10 years, becoming the second largest county by 1.00%

population in the state, and the 15th largest county in the United 0.50%

States. The largest city in the county is Fort Lauderdale, with a 0.00% 2005 population of 1,789,300, a number that is expected to 1999 2000 2001 2002 2003 2004 2005E 2006E 2007E 2008E 2009E reach approximately 1,954,572 by 2010. The Fort Lauderdale- Fort Lauderdale Pompano Beach area is anticipated to grow by 2.1% annually for U.S.

Building Interior B0788_Brochure_PRESS 9/28/05 2:52 PM Page 13

Cypress Financial Center

13 Economy & Employment Broward County is one of the nation’s most desirable business Jacksonville (8); Orlando (11); Tampa-St. Petersburg (14); and locations because it enjoys a complementary balance between Miami (22). domestic and international trade and migration. Due to its proximity to Miami-Dade County, Broward County’s economy Except for technology, all employment sectors are expanding. has been reaping the beneﬁts of Miami’s booming international Broward County’s major sources of employment stem from the trade. This has attracted a strong rate of in-migration. Broward education/health services and professional/business services County also derives a highly skilled workforce from the several industries. These industries are driving the majority of the job surrounding universities in the area, including the University gains in the area. In addition, the leisure and hospitality industry of Miami, Florida International University and Florida remains strong as it continues to expand as a result of rising Atlantic University. occupancy rates, bed tax collections, and average daily room rates.

Relative Employment Performance (1991=100) 170 160 150 140 130 120 110 100 90 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09

DataBuffet® MSA code: DMFOT U.S. FT. LAUDERDALE

Industry Base Having grown more than 5% in the past year, the Fort Lauderdale Broward County has a diverse industry base, which helps mitigate economy is among the strongest of any major city in Florida. In the effects of national and state recessions. In the Fort Lauderdale fact, Fort Lauderdale was ranked the seventh fastest growing MSA area, the trade and transportation industry accounts for the largest in the nation with respect to job growth from 2002 through 2004. employment by industry. This industry has expanded to Employment growth in Ft. Lauderdale has historically been accommodate the mass in-migration and thriving international higher than in the U.S. and this is expected to continue over the trade. With nearly 15% of the area’s population above the age of next several years. The unemployment rate remains below both 65, the healthcare industry has seen tremendous growth over the the state and national rates at 4.5%, pointing to the economy’s past five years. Healthcare employment has risen by 20% since strength. 15,400 jobs were created in 2004, and 27,000 are June 2000. Rounding off Broward County’s top industries is expected to be added in 2005, with an increase in payrolls of leisure and hospitality, which currently accounts for 10.8% of 3.7%. In 2006 and 2007, business services are expected to employment. Proximity to Fort Lauderdale-Hollywood continue to provide the strongest growth. This growth trend is International Airport and Broward County’s warm climate projected to increase steadily over the next five years creating a continue to drive tourism. consistent demand for office space in the coming years.

The chart on the next page reﬂects the percentage employment by Affordable cost of living, relatively low business start-up costs, industry sector. growth in the business and professional service industries, and a talent pool that features both young, upwardly mobile professionals recently contributed to Fort Lauderdale’s No. 7 ranking out of 250 metropolitan regions in the U.S. by Inc. Magazine. These rankings were based on job growth and economic diversity data obtained from the U.S. Bureau of Labor

Market Overview Statistics. Joining Fort Lauderdale (7) are West Palm Beach (5); B0788_Brochure_PRESS 9/28/05 2:52 PM Page 14

Change in Employment, Dec 2002 - Dec 2004

Washington DC Las Vegas Phoenix Riverside Tampa Orlando Fort Lauderdale St. Louis San Diego Orange County Baltimore Jacksonville Charlotte NC Minneapolis Nassau - Suffolk

0 20 40 60 80 100 120 Source: Torto Wheaton Research Number of Jobs (000's)

Visitors enjoy more than 20 miles of award-winning palm-fringed EMPLOYMENT BY INDUSTRY golden-sand beaches, numerous golf courses, and a shopping Average Monthly Employment Broward County Florida mecca with abundant shops, malls, flea markets, and Florida’s Construction 6.5% 6.2% largest outlet mall. Sports fans can relish in professional football, Education & Health Services 18.4% 18.9% baseball, basketball, hockey, soccer, and thoroughbred Financial Activites 8.4% 6.7% horseracing. Offshore, Broward County offers a full range of water Information 2.8% 2.4% activities, including diving, snorkeling, fishing, boating and all Leisure & Hospitality 10.8% 11.2% water sports. Broward County also offers a wide range of Manufacturing 4.5% 5.3% historical and cultural opportunities, such as museums, art Other Services 3.7% 3.2% galleries, theaters, and music and cultural festivals. Professional & Business Service 16.1% 17.4% Public Administration 5.8% 6.1% Transportation Trade, Transportation and Utilities 22.7% 20.9% Linked by a measureless infrastructure of airports, railways, Unclassified 0.2% 0.10% roadways and seaports, Broward County has the world on its doorstep. This network is constantly expanding and improving to Source: eFlorida.com accommodate long-term growth. The Property benefits from Culture/Activities/Sport convenient access to two international airports, Fort Lauderdale- Broward County’s enticing climate and internationally accessible Hollywood International Airport and Miami International location fuel its increasingly popular reputation as an Airport. Fort Lauderdale-Hollywood International Airport is internationally known destination for both business and pleasure. located on U.S. Highway 1, proximate to I-95, and I-595, in No longer solely a tourist destination, Broward County’s pro- addition to several federal and state highways. Servicing 20.8 business developments have attracted a wide range of small and million passengers a year, Fort Lauderdale-Hollywood large businesses to the area’s multiple convention centers. The International Airport is ranked 23rd in the U.S. and 48th world class Greater Fort Lauderdale-Broward County Convention worldwide. Conveniently, Miami International Airport is only 26 Center most recently beat out 16 other U.S. cities to host the miles away from the Property. meeting for the General Assembly of the Organization of American States in early June. This has garnered additional In addition to air transportation, Broward County offers state of business for the area and may help boost neighboring Miami’s the art rail services. Both the FEC and Tri-Rail are in walking position in its bid to become the headquarters of the Free Trade distance from the Property, with the nearest port 3 miles from the Area of the Americas. Property. In June 2005, the Tri- County Commuter Rail (Tri-Rail) was transformed into the South Florida Regional Transportation Broward County prides itself on its unique blend of recreational Authority (SFRTA) in an effort to further mobility in South opportunities, historical points of interest, and cultural events. Florida to aid population expansion and economic viability. B0788_Brochure_PRESS 9/28/05 2:52 PM Page 15

Cypress Financial Center

15 Land transportation is constantly improving with the expansion of Ofﬁce Vacancy: Suburban Ft. Lauderdale vs. U.S.A. several major roadways, suitably linking all areas of Broward 25.00%

County.Connecting Downtown Fort Lauderdale to the western 20.00% suburbs is Interstate 595. Alligator Alley intersects I-595, providing 15.00% direct access to I-75 linking Miami, Naples Fort Myers, and Tampa. The Sawgrass Expressway provides access between Palm Beach 10.00%

County and western Broward County. 5.00%

0.00% Broward County’s seaports facilitate both domestic and 02 03 04 YTD 05E 06E 07E 08E Vacancy (Suburban) USA Vacancy international trade. Located within Hollywood, Fort Lauderdale, and Dania, the 2,100 acre seaport of Port Everglades is one of The first chart on the next page is a summary of the submarkets Florida’s strongest economic engines, with over $66 million in that make up Broward County’s Office Market, their vacancy, new annual operating revenues and over 23 million tons in waterborne construction, and net absorption in each for second quarter 2005. commerce annually. To combat Broward County’s rapidly Suburban Fort Lauderdale’s vacancy rate currently stands at just expanding population and economic base, the South Florida under 13% and is projected to drop below 10% in the next Transportation Authority is constantly implementing eighteen months. transportation improvements and developments to ensure accessibility to all areas of Broward County. Broward county’s blossoming economy and office market is a direct result of its tactical and expedient location to perform both Broward County Office Market domestic and international business. Small and large businesses The Broward County Office Market is comprised of alike are attracted to Broward’s high quality of life, business approximately 13,251,000 million square feet of office buildings oriented outlook, and easily accessible air and sea port capacities. in a geographic area extending from the Everglades to west, and The county has proven its economic strength by maintaining an the Atlantic Ocean on the east. The market consists primarily of unemployment level that is on par with the State of Florida, which Class A (29%) and B (44%) assets. is already 90 basis points lower than the national unemployment rate of 5.1%. Broward County Property Class Composition Broward County has grown significantly in the past 20 years, driving the real estate market’s expansion into the western area of 27% 29% the county. The development of two major highways beginning in 1990 assisted this enlargement. Interstate 595 has played the crucial role of connecting downtown Fort Lauderdale to the 44% western suburbs. Intersecting I-595 is Alligator Alley, providing

A B C direct access to I-75, the gateway to Northwest Miami-Dade County, Fort Myers, and Naples. In southern Broward, the Sawgrass Expressway has helped link Palm Beach County with The market continues to show signs of improvement as leasing western Broward County. Enhancing accessibility to Broward’s activity increases and availability decreases. The vacancy rate western portion has spurred the development of residential, decreased to 14.7% during the second quarter, a more than three commercial, and retail in that area. It also allows companies a percentage point drop since year-end 2004. This represents the central location from which to serve the Tri-County area. All of fourth consecutive quarter the vacancy rate has decreased in these factors are responsible for the increase and diversiﬁcation in Broward County. Rents are steadily increasing while absorption Broward’s population base and workforce. continues to ﬂuctuate as the market absorbs new space and short-term sublease space expires. Average asking rents stand at Broward County’s vacancy rate has been decreasing steadily since $25.52 while absorption remains strong at 329,433 square feet year end 2002. This is a strong recovery from the effects of 9/11 for mid-year 2005. and the technology bubble burst. Shortly after September 11, Broward’s economy began to contract parallel to the rest of the nation. During the technology boom, the county experienced over Market Overview B0788_Brochure_PRESS 9/28/05 2:52 PM Page 16

FT. LAUDERDALE SPACE STATISTICS AS OF SECOND QUARTER 2005 Direct Inc. Sublease 2005 Estimated Year-End Year-To- Absorption Year-To- End of End of End of Completions 2006 2004 Date Current Year-To- Date % of Quarter Quarter Quarter (Including Estimated Vacancy (%)Completions Quarter Date Stock Stock Vacancy (%) Vacancy (%) Subleases) Completions

CBD Downtown 21.07% 0 77,747 120,716 2.98% 4,056,702 18.09% 19.00% 0 0 Suburban Cypress Creek 23.00% 0 12,938 138,065 4.12% 3,352,882 18.89% 19.55% 0 0 Plantation 5.99% 110,000 20,131 2,427 0.12% 2,069,994 10.87% 10.92% 0 220,000 Sawgrass Park 9.09% 0 26,211 31,920 1.64% 1,941,474 7.45% 9.11% 147,665 0 Southwest Broward 7.67% 0 15,746 36,305 1.82% 1,989,594 5.84% 6.20% 97,178 0 Suburban Market Total 13.17% 110,000 75,026 208,717 2.26% 9,353,944 11.96% 12.85% 244,843 220,000 Market Totals 15.58% 110,000 152,773 329,433 2.48% 13,410,646 13.82% 14.71% 244,843 220,000

FT. LAUDERDALE - BROWARD COUNTY SPACE STATISTICS (000) AS OF SECOND QUARTER 2005 02 03 04 YTD 05E 06E 07E 08E Net Construction 607 115 87 110 355 220 250 300 Net Absorption 489 270 229 329 780 630 465 370 Ending Stock 13,049 13,164 13,251 13,411 13,606 13,826 14,076 14,376 Ending Vacancy (%) 23.5% 19.9% 17.8% 14.7% 14.2% 11.0% 9.3% 8.6% CBD Vacancy Rate 22.7% 19.5% 20.3% 19.0% 16.3% 11.9% 9.6% 6.7% Suburban Vacancy Rate 23.1% 19.5% 15.7% 12.8% 12.6% 10.0% 8.5% 8.7% Rental Rate (Gross) $23.38 $24.08 $25.50 $25.52 $25.62 $26.16 $27.03 $27.57 CBD Gross Rent $26.19 $25.96 $29.10 $30.06 $29.68 $30.27 $31.18 $32.12 Suburban Gross Rent $22.18 $23.21 $23.20 $23.56 $23.66 $24.37 $25.34 $26.36

4 million square feet of construction. Today, Broward County posts a healthy vacancy rate of 14.2%, which is expected to drop into the single digits in 2007. Vacancy/Rental Rate Relationships

25.0% $30.00 Rental rates have continued to increase since 2002 as result of 20.0% new demand and decreasing vacancy rates. The average asking $25.00

full service rental rate in Broward County is $25.52 per square 15.0% foot for midyear 2005. This is comprised of an average CBD rent $20.00 of $30.06 and a suburban average of $23.56, across all classes. 10.0% $15.00 5.0% For midyear 2005, Broward County posted a positive net 0.0% $10.00 absorption of 780,000 square feet. This is the tenth consecutive 02 03 04 05E 06E 07E 08E quarter Broward County has recorded positive absorption, indicating a strong recovery from the burst of new construction Ft. Lauderdale Vacancy that ﬂooded the market in 2001. Correspondingly, new USA Vacancy construction has signiﬁcantly decreased since 2001, signaling the Ft. Lauderdale Rent (Gross) vigilance of developers. USA Rent (Gross) B0788_Brochure_PRESS 9/28/05 2:52 PM Page 17

Cypress Financial Center

17 Cypress Creek Submarket The Cypress Creek submarket offers a central location to the Tri- The Cypress Creek Office Market has been steadily improving County area, with easy access to Fort Lauderdale’s CBD, Fort over the past few years with vacancy levels falling from post 9/11 Lauderdale-Hollywood International Airport, and surrounding levels. Cypress Creek recorded excellent absorption activity this executive neighborhoods. The submarket consists primarily of year posting the largest amount of new occupancy in the county. Class A (31%) and B (52%) assets. The Cypress Creek submarket Vacancy declined from 23% at year-end 2004 to 18.9% for the is comprised of approximately 3 million square feet of office second quarter 2005, a 410 basis point decrease. buildings in a geographic area bounded by the Florida Turnpike and North Dixie Highway to east and west, and North Cypress Given the lack of viable sites in Cypress Creek for development Bend Drive and State Highway 870 to the north and south. combined with the positive absorption the market has witnessed over the past year, vacancy in the submarket is expected to drop significantly in the next two years. It is projected that Cypress Cypress Creek Historical & Projected Absorption & Completions Creek will reach single digit, pre 9/11 vacancies in 2007, well before the U.S. market as a whole. 300,000 35.0%

200,000 30.0%

100,000 25.0%

0 20.0% 2000 4Q 2001 4Q 2002 4Q 2003 4Q 2004 4Q 2005 4Q 2006 4Q Square Feet % Vacant (100,000) 15.0%

(200,000) 10.0%

(300,000) 5.0%

Period Net Deliveries Net Absorption (400,000) 0.0%

Source: Costar Research.

Cypress Creek Historical & Projected Vacancy

30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 1998 1999 2000 2001 2002 2003 2004 2Q05 2005P 2006P 2007P 2008P

Vacancy Market Overview B0788_Brochure_PRESS 9/28/05 2:53 PM Page 18

18 Sales Comps COMPARABLE OFFICE BUILDING SALES Property Address Sale Date RSF Sale Price Price/RSF Bank of America Tower 150 E. Palmetto Park Road Boca Raton Jul-05 109,609 $34,200,000 $312 595 Financial Center 555-595 S. Federal Highway Boca Raton Jun-05 116,008 $36,715,000 $316 Centurion Tower 1601 Forum Place West Palm Beach Jun-05 144,141 $29,141,190 $202 Las Olas City Centre 401 E. Las Olas Blvd Ft. Lauderdale Mar-05 408,063 $120,000,000 $294 Boca Hamptons Plaza 9030-9080 Kimberly Blvd. Boca Raton Feb-05 93,216 $20,000,000 $215 Mind Body Medical Institute 1905 Clint Moore Road Boca Raton Dec-04 100,000 $23,575,000 $236 Las Olas City Centre 350 & 450 E. Las Olas Blvd Ft. Lauderdale Mar-05 470,326 $138,000,000 $293 City Centre 2000 PGA Blvd North Palm Beach Nov-04 93,500 $19,450,000 $208 Fountain Square Ofﬁce 2600-2700 N. Military Trail Boca Raton Oct-04 242,085 $50,000,000 $207 The Sportsline Building 2200 W. Cypress Creek Ft. Lauderdale Oct-04 80,000 $16,150,000 $202 Phillips Point Promenade 777 S. Flagler Drive West Palm Beach Dec-03 424,200 $140,000,000 $330 Financial Center at the Gardens 3801 PGA Blvd Palm Beach Gardens Nov-03 189,147 43,500,000 $230 Esperante Ofﬁce Building 222 Lakeview Avenue West Palm Beach Sep-03 248,000 $60,800,000 $245 The Plaza 5355 Town Center Road Boca Raton Sep-03 145,344 $30,000,000 $206 Citrix Building 851-899 W. Cypress Creek Road Ft. Lauderdale Sep-02 281,189 $58,000,000 $206 Source: Market Insite Group Inc.

Development Analysis Adjacent Site The chart below shows current construction costs for suburban Adjacent to the Property, is a parcel owned by the Florida Fort Lauderdale ofﬁce buildings. Using this as a guide, Department of Transportation. Currently the FDOT is in extrapolated new construction rents are $25 to $26 psf, negotiations with a developer to build a residential, retail and approximately $8 psf above Cypress Financial Center’s current hotel, mixed used development. The prospective development asking rate. will further bolster an already strong amenity base, while preventing the development of speculative new ofﬁce space near Cypress Financial Center.

CONSTRUCTION COST ANALYSIS

Item $/SF Land 35.0 Base Building - Standard Aggregate Finishes 80.0 Garage (4/1000) 53.0 Site Work 5.0 Tenant Improvements (including ceiling sytem) 50.0 Commissions 3.0 Architectural & Engineering 23.0 Interest Carry 9.0 Impact Fee 5.0 Project/Development/Construction Management Fee 7.0 Miscellaneous /Marketing 5.0 Contingency 5.0 Total $280.0 Required Net Rent @ 9% - 9.5% $25.20 - $26.60 Current Cypress Financial Market Rent $16.50 - $17.50 B0788_Brochure_PRESS 9/28/05 2:53 PM Page 19

Cypress Financial Center

19 Competitive Properties

1 1 1 2 3

Name Radice Corporate Center I Radice Corporate Center II Radice Corporate Center III Broward County Trade Center Pinnacle Corporate Park I Address 600 Corporate Drive 800 Corporate Drive 1000 Corporate Drive 200 W Cypress Creek 500 W Cypress Creek Asking Rent $15.25 $15.25 $15.00 $16.00 $16.00 Occupancy 78.7% 76.0% 98.0% 35.0% 85.0% Net Rentable Area 101,836 120,790 129,700 102,036 151,832 Year Built 1984 1985 1987 1984 1986 Number of Floors 6 7 7 6 7

3 4 5 5 6

Name Pinnacle Corporate Park II Trade Centre South Cypress Park West 1 Cypress Park West II Cypress Centre Address 550 W Cypress Creek 100 W Cypress Creek 6700 N. Andrews Ave. 6750 N. Andrews Ave 6600 N. Andrews Ave. Asking Rent $16.00 $12.00 - $19.00 $16.00 $18.00 $15.00 Occupancy 96.0% 80.0% 92.2% 78.0% 73.4% Net Rentable Area 113,719 215,049 117,633 115,310 124,462 Year Built 2001 1986 1987 2003 1985 Number of Floors 5 10 7 4 5 Market Overview B0788_Brochure_PRESS 9/28/05 2:53 PM Page 20

845

McNab Rd 95 5

FortFort LauderdaleLauderdale e

Andrews Av

6 Rd

CSX Railroad Powerline 1

Cypress Creek Rd 3 2 Cypress Financial Center

Tri Rail Station

North Andrews Gardens Park

95 LEGEND

1 Radice Corporate Park

2 Broward Trade Center Andrews Ave Andrews 3 Pinnacle Corporate Park 4 Trade Centre South 5 Cypress Park West I & II 6 Cypress Centre

Commercial Blvd 870 B0788_Brochure_PRESS 9/28/05 2:54 PM Page 21

Cypress Financial Center

21 Tenancy Summary B0788_Brochure_PRESS 9/28/05 2:54 PM Page 22

22 Industry Diversification Value Creation Zone Cypress Financial Center is currently 83.3% leased, following a As the leasing markets in Cypress Creek continue to strengthen surge of leasing activity. Since August 2004, over 93,000 of new in favor of the landlord, Cypress Financial Center is poised for and renewal deals commenced at the Property. The varied tenant significant value enhancement through the lease-up of existing roster is comprised of 90 tenants in nine different industries. This vacancy. Effectively, Cypress Financial Center provides near diverse tenant representation mitigates the risk to any single term income security coupled with mid-to-long term value industry and delivers a secure cash flow stream. creation opportunity.

Industry Classification $ 8,000 $ 7,000

Other $ 6,000 Technology Real Estate $ 5,000 Communications Value Creation Zone $ 4,000

Staffing (Revenues 000’s) $ 3,000 Law Finance $ 2,000

$ 1,000

$0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Insurance Tobacco Value Creation Zone Contractual Revenue Lease Expiration Schedule Major Tenants Cypress Financial Center’s rollover schedule provides an investor The seven largest tenants at the Property make up over 70% of with near-term income security, while allowing an investor to the total building net rentable area and collectively provide a capitalize on a rapidly rising rent environment through the great deal of security to the rent roll. Following are summaries of lease-up of existing vacancy. Between today and year-end 2008, the business activities of the Property’s major tenants. less than 12,000 square feet expires at the Property.

LEASE EXPIRATION SCHEDULE CYPRESS FINANCIAL CENTER’S LARGEST TENANTS NRA Expiring Annual Expiration Cumulative Tenants RSF % of Total Expires (SF) % Expiration % Altadis U.S.A., Inc. 37,128 18.7% 4/30/13 Vacant 33,263 16.7% 16.7% Brown & Brown, Inc. 30,044 15.1% 9/30/10 MTM 294 0.1% 16.9% CITCO Technology Mgmt, Inc. 19,211 9.7% 12/31/09 2005 1,516 0.8% 17.7% Tarragon South Development 19,072 9.6% 1/31/16 2006 0 0.0% 17.7% 2007 1,410 0.7% 18.4% Ace Mortgage Funding, Inc. 12,302 6.2% 10/31/10 2008 8,750 4.4% 22.8% Metropolitan Life Insurance Co. 10,734 5.4% 3/31/10 2009 28,098 14.1% 36.9% Marcus & Milichap Real Estate 10,613 5.3% 6/30/11 2010 58,830 29.6% 66.5% Total 139,104 70.0% 2011 10,319 5.2% 71.7% 2012 0 0.0% 71.7% 2013 37,128 18.7% 90.4%

Calendar Year Ending December 31 Calendar Year 2014 0 0.0% 90.4% 2015 0 0.0% 90.4% 2016 19,072 9.6% 100.0% Property Total 198,680 100.0% B0788_Brochure_PRESS 9/28/05 2:54 PM Page 23

Cypress Financial Center

23 Altadis U.S.A. Altadis U.S.A. is an amalgamation of cigar manufacturers who homes with an estimated value of $3.3 billion to be delivered over cater to localized markets with regional brands. The company’s the next several years. stable of trademarks includes Antonio y Cleopatra, Don Diego, Dutch Master, Dutch Treats, El Producto, Flamenco, Henry Clay, Ace Mortgage Funding H. Upmann, La Corona, Mixture 79, Montecristo, Muriel, Primo Ace Mortgage Funding, Inc. places home loans with borrowers in del Rey, Roio Tan,Royal Jamaica, Te-Amo and Three Star among all credit ranges. Dealing with the greatest range of mortgage a number of others. It is the biggest supplier of private label pipe lenders allows Ace Mortgage Funding the most flexibility when tobacco in the United States. The company has consolidated working with clients on refinancing mortgages and home operation facilities in Honduras, Puerto Rico, Pennsylvania, purchase loans. Ace Mortgage Funding offers home loans in over Jamaica, Virginia, and the Dominican Republic and affiliations for 35 states and has branch offices in: Arizona, Colorado, Florida, production in Mexico, Brazil, and Holland. Leaf supplies are Georgia, Indiana, Minnesota, Missouri, Nevada, Ohio and obtained from growers in every part of the world. It is Tennessee.Fixed and adjustable mortgage rates are available with headquartered in Fort Lauderdale, Florida, where general policy most first and second mortgage and home equity loan programs. decisions are made. MetLife Brown & Brown, Inc. MetLife is one of the largest insurance and financial services Brown & Brown is a publicly traded, independent insurance companies in the U.S. The company’s unparalleled franchises intermediary that provides a variety of insurance and reinsurance and brand names uniquely position it to be the preeminent products and services to corporate, public entity, institutional, provider of protection and savings and investment products in the trade, professional, association and individual clients. U.S. In addition, MetLife’s international operations are focused Headquartered in Daytona Beach and Tampa,Florida, offices are on emerging markets where the demand for insurance and savings located across the United States, with products and services and investment products is expected to grow rapidly in the future. offered through four major business divisions. The MetLife companies serve individuals in approximately 13 million households in the U.S. and provide benefits to 37 million The Citco Group Limited employees and family members through their plan sponsors. The Citco Group Limited is an organization of financial service Outside the U.S., the MetLife companies serve approximately 8 providers, comprised of international banks, trust and fund million customers through direct insurance operations in companies. For over sixty years, the company has served the Argentina, Brazil, Chile, China, Hong Kong, India, Indonesia, growing needs of a diverse client base from its network of Mexico, South Korea, Taiwan and Uruguay. international offices. The group provides corporate/fiduciary, fund administration and fund advisory services, brokerage, Marcus & Millichap banking and data processing services, as well as international Since 1971, Marcus & Millichap Real Estate Investment pension services. In all its business activities, Citco Group is Brokerage Company has been a provider of investment real estate dedicated to customer service, maintaining total client privacy and brokerage services. The foundation of their investment brokerage confidentiality within the necessary statutory frameworks. services is the depth of their local market knowledge. Their 34- year history of maintaining investor relationships in local markets Tarragon Corporation enables them to be one of the best information sources and Tarragon Corporation, founded in 1973, is an urban homebuilder transaction service providers nationally. In 2004, Marcus & focused on developing innovative, high-density communities for Millichap closed $14.4 billion of investment transactions for today’s life style. Based in Manhattan, with offices in Fort private and institutional investors. Marcus & Millichap has Lauderdale, Jacksonville, and Orlando, Florida; Wallingford, established itself as a one of the leading and expanding investment Connecticut and Dallas, Texas. Tarragon’s for-sale communities real estate companies, with more than 900 brokers in markets are concentrated in New Jersey, Florida, New York, Connecticut, throughout the United States. Since 1995, the firm has added 17 Tennessee and Texas. Since developing its urban homebuilding new offices, including openings in Downtown Chicago, West Los model in 1999, Tarragon has experienced exponential growth Angeles, Cleveland and San Antonio in 2004. with 2005 sales expected to near $1 billion, from its 28 active projects and a development pipeline representing over 10,000 Tenancy Summary Tenancy B0788_Brochure_PRESS 9/28/052:54PMPage24

6 Suite Tenant RSF Expiration 600 Ace Mortgage Funding, Inc. 12,302 10/31/10 620 VACANT 5,076 627 Ajilon Professional Staffing 1,516 10/01/05 Total Square Feet 18,894 Suite Tenant RSF Expiration 11 1100 Altadis U.S.A., Inc. 18,300 4/30/13 5 Suite Tenant RSF Expiration Total Square Feet 18,300 500 Tarragon South Development 19,072 1/31/16 Total Square Feet 19,072 Suite Tenant RSF Expiration 10 1000 Altadis U.S.A., Inc. 18,828 4/30/13 4 Suite Tenant RSF Expiration Total Square Feet 18,828 400 Brown & Brown 8,629 9/30/10 420 Ajilon Professional Staffing 3,843 9/30/10 Suite Tenant RSF Expiration 9 450 Brown & Brown 3,533 9/30/10 900 The Florida Bar 6,552 1/31/09 460 VACANT 3,085 905 Southland Partners 1,410 11/30/07 Total Square Feet 19,090 908 Special Risk Underwriters 2,335 6/30/09

920 Miami Entertainment Television 6,532 1/31/08 3 Suite Tenant RSF Expiration 925 VACANT 1,531 300 Brown & Brown 17,882 9/30/10 927 VACANT/Conf. Room 437 Total Square Feet 17,882 Total Square Feet 18,797

2 Suite Tenant RSF Expiration Suite Tenant RSF Expiration 8 200 VACANT 8,565 800 Metropolitan Life Insurance Company 10,734 3/31/10 230 VACANT 2,858 808 VACANT 3,564 260 VACANT 2,136 824 VACANT 2,075 299 VACANT 3,016 826 Panattoni Development Co., LLC 2,218 11/30/08 Total Square Feet 16,575 Total Square Feet 18,591 1 Suite Tenant RSF Expiration Suite Tenant RSF Expiration 7 100 Marcus & Millichap 10,319 6/30/11 700 CITCO Technology Management 12,734 12/31/09 109 Nate’s Place - Café 1,907 4/30/10 750 CITCO Technology Management 6,477 12/31/09 110 VACANT 920 Total Square Feet 19,211 111 Marcus & Millichap Storage 294 MTM Total Square Feet 13,440

Building Total 198,680 24 B0788_Brochure_PRESS 9/28/05 2:54 PM Page 25

Cypress Financial Center

25 LEASE EXPIRATION SCHEDULE AS OF AUGUST 1, 2005 Expiration In-place Annual Cumulative Year Tenant Suite(s) Date Square Feet % % Vacant Multiple 33,263 16.7 16.7

MTM Marcus & Millichap Real Estate 111 MTM 294 294 0.1% 16.9%

2005 Ajilon Professional Stafﬁng, LLC 627 10/01/05 1,516 1,516 0.8% 17.7%

2006 Metro Networks Communications, Inc. Roof 09/30/06 0 0 0.0% 17.7%

2007 Southland Partners, LLC 905 11/30/07 1,410 1,410 0.7% 18.4%

2008 Miami Entertainment Television, Inc. 920 01/31/08 6,532 Panattoni Development Co, LLC 826 11/30/08 2,218 8,750 4.4% 22.8%

2009 The Florida Bar 900 01/31/09 6,552 Special Risk Underwriters, Inc. 908 06/30/09 2,335 CITCO Technology Mgmt, Inc. 700 & 750 12/31/09 19,211 28,098 14.1% 36.9%

2010 Metropolitan Life Insurance Co. 800 03/31/10 10,734 Nate’s Beanery & Books, Inc. 109 04/30/10 1,907 Ajilon Professional Stafﬁng, LLC 420 09/30/10 3,843 Brown & Brown, Inc. 300, 400, 450 09/30/10 30,044 Ace Mortgage Funding, Inc. 600 10/31/10 12,302 58,830 29.6% 66.5%

2011 Marcus & Millichap Real Estate 100 06/30/11 10,319 10,319 5.2% 71.7%

2013 Altadis U.S.A., Inc. 1000 & 1100 04/30/13 37,128 37,128 18.7% 90.4%

2016 Tarragon South Development Corp. 500 01/31/16 19,072 19,072 9.6% 100% TOTAL 198,680 100% Tenancy Summary Tenancy B0788_Brochure_PRESS 9/28/05 2:54 PM Page 26

26 STAIR STAIR #2 TEL.& TEL.& ROOM ROOM ELECT. ELECT. ROOM ROOM MECHANICAL MECHANICAL ELEV #1 ELEV #1 ELEV #2 ELEV #2 ELEV #4 ELEV #3 ELEV #4 ELEV #3 ROOM WOMEN’S ROOM WOMEN’S JAN. JAN. ROOM MEN’S ROOM MEN’S STAIR STAIR #1 Floor 2 Floor 4-11 GARAGE TO PARKING HALL RM. FIRE ALARM MAIL AREA MAIL ROOM FIRE CORRIDOR STAIR STAIR ROOM ELECT TEL.& ROOM ELECT. ELECT A/C ROOM ROOM MECHANICAL MECHANICAL ELEV ELEV MAIN ENTRY ELEV #1 ELEV #2 LOBBY ELEVATOR ELEV ELEV ELEV #4 ELEV #3 ROOM WOMEN’S MEN JAN. JAN. WOMEN ROOM MEN’S STAIR UP STAIR Floor 1 Floor 3 B0788_Brochure_PRESS 9/28/05 2:55 PM Page 27

Cypress Financial Center

27 Financial Information B0788_Brochure_PRESS 9/28/05 2:55 PM Page 28

28 Year 1Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year Real Estate Tax RecoveryIn-Place Leases Expiring sf)Leases Expiring (% of Total Tax Cummulative Lease ExpirationsRentRecoveryEstate Revenues Base Expense Income780 2.86 569 617 631 649 634 683 722 711 763 779 Real IncomeOperating LossOther RevenuesParking 1,832 6.68 1,328 1,456 1,488 1,530 1,481 1,607 1,713 1,676 1,810 1,843 Safety Vacancy/Credit Maintenance 0% Total 0& Life 4,999 $15.06 2,993 3,465 3,567 3,695 3,684 4,104 4,377 4,376 4,732 4,848 Operating Expenses 1% 1,410Cleaning 1%19 Repairs 0.06 12 13 17 18 & 87 0.11 22 28 29 33 49 67 74 77 82 8,750 4% 0.00 LandscapingAdministrative 0 (67)SecurityTaxes7,717 5%324 28,098 $24.78 4,924 5,511 5,684 5,881 5,861 6,477 6,816 6,858 7,329 7,536 Fee 1.21 241 248 256 264 271 280 288 297 305 315 Fire 14%& 14 0.05 11 12 13 14 Utilities (44) 58,830Estate 19%Management 30%General 10,319 (39) ExpensesReal Income 49%Insurance277 5% 1.04 206 212 219 225 232 239 246 253 261 269 Total Operating 0267 54% $1.00 198 211 216 222 220 233 244 258 265 0 Service 0 (88)814 45 0% 3.05 606 624 643 662 682 702 723 745 767 790 0.17 33 34 35 36 37 39 40 41 42 43 Net Expenditures 37,128 0.43 Work 86 54%Debt 96 135 99 103 113 119 120 128 132 Commissions149 0.56 111 114 117 121 124 128 132 136 140 144 Capital Expenditures 19% 0 (76)Capital 4,996 $14.68 2,917 3,414 3,526 3,659 3,604 4,125 4,377 4,373 4,742 4,876 Tenant Before 73% 0600 Leasing 2.24 444 473 485 499 494 523 549 548 580 594 3,831 $10.59 2,105 3,414 3,397 3,480 2,095 3,187 4,377 3,009 4,668 4,639 2,722 $10.10 2,007 2,098 2,158 2,222 2,257 2,352 2,439 2,486 2,587 2,660 0% Total (35)Flow 73% 0 $4.09 812 1,165 1,510 938 Cash 1,364 74 237 0 130 179 96 0 0% 0.36 72 74 76 78 81 83 85 88 91 93 73% 0 19,072 Occupancy 1.71 340 10% 0 82% $2.38 472 66 89 793 480 0 64 0 722 583 90 717 457 34 114 0 641 582 40 123 95% 100% 99% 99% 93% 97% 100% 96% 100% 99% 96% CASH FLOW PROJECTION (000’S) CY Ending December PSF 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 B0788_Brochure_PRESS 9/28/05 2:55 PM Page 29

Cypress Financial Center

29 Cash Flow Assumptions Market Rent Growth Rates The 11-year cash flow projection for Cypress Financial Center With the economy and job growth surging, the continued was modeled using Argus v.11.2 for the period beginning January resurgence of the Cypress Creek office market, and positive 1, 2006 and ending December 31, 2016. A disk containing an trending market fundamentals, rental rates at Cypress Financial Argus file is included with this offering memorandum. Following Center are expected to grow significantly as the leasing markets are the underlying assumptions used in deriving the cash flows continue to strengthen in favor of the landlord. All rents for the over the projection period. office, retail, roof and storage are assumed to grow on a calendar year basis at the rate of 6% in 2006, 7% in 2007, 7% in 2008, 6% CYPRESS FINANCIAL OCCUPANCY in 2009 and 3% for the remainder of the projection period. In Place NRA % Of Total Leased: Speculative Lease Terms Office 163,216 82.2% Lease terms for speculative new and renewal leases are assumed Retail 1,907 1.0% to be 5 years for all suites less than 5,000 square feet, 7 years for Storage 294 0.1% all suites between 5,000 and 10,000 square feet and 10 years for Total Leased 165,417 83.3% suites 10,000 square feet and larger. Vacant 33,263 16.7% Total Cypress Financial 198,680 100.00% Market Rental Abatement General Growth Rate None 3% per annum Downtime Revenues Should a tenant not renew its lease, the space is assumed to be Base Rent vacant for a period of time prior to lease-up. In the projections, all Projected rental rates are based on recent and historical rental leases rolling during the projection period are assumed vacant for rates achieved at Cypress Financial Center. Historically, the 6 months on an unweighted basis. Property has achieved among the highest rates in the Cypress Creek submarket, due largely to its premier location and easy Options access, superior aesthetics and large amenity package. Leases for The rent roll details the specific options of each tenant at the new and renewing tenants are signed at the then-current market Property. All tenants, with the exception of those detailed on the rental rate, and incur 3.5% annual increases. The rental rate for next page, are assumed to roll to standard market assumptions, as the office and retail space is based upon varying market rental detailed in this Financial Analysis section. This analysis does not rates depending on floor height and views. The 2005 projected assume the exercise of any tenant options. market rents are shown in the table below.

Renewal Probability Category 2005 Market Rent ($/S.F.) Cypress Financial Center has a great track record with regard to Ground Ofﬁce/Retail 17.50 tenant retention. All tenants are assigned a 75% renewal Floors 2-11 Ofﬁce 16.50 probability (used to weight new and renewal market leasing Storage 12.00 assumptions), with the following exception.

1) All rental rates are quoted on a per square foot per year basis, grown according to the growth rates below. Tenant NRA (S.F.) Exp. Date Notes 2) The Office/Retail rental rates are NNN and assume a pro-rata share Ajilon Finance 1,516 10/1/05 Tenant is relocating to Suite 420 reimbursement of Real Estate Taxes and Operating Expenses. (Suite 627) and expanding by 150%. The 3) Office/Retail rents assume 3.5% contractual increases per year. model reflects tenant vacating Suite 627 on 10/1/05, the projected commencement date of its new suite. Financial Information Financial B0788_Brochure_PRESS 9/28/05 2:55 PM Page 30

30 Vacant Lease-up The following vacant spaces are leased up according to the Other income is projected to continue through the life of the following terms and conditions detailed in the chart below. All analysis and, with the exception of the ground rent, grown at the spaces are leased up according to the market terms/concessions General Growth Rate. outlined above for new leases, respective of the location in the building. In addition, all lease-up incurs capital costs including Parking Income tenant improvements and leasing commissions, as later deﬁned in Parking revenue represents income associated with the 6-level this section under Capital Expenditures. parking garage at the Property. Included in this line item are Suite NRA (S.F.) Start Date monthly parking fees for reserved spaces. Pursuant to leases and licenses currently in effect, tenants and licensees are paying for 8 110 920 January 2006 200 8,565 January 2006 spaces at the Property. Included in the model is the revenue 230 2,858 March 2006 associated with in-place parking, seven which will terminate upon 260 2,136 March 2006 expiration of each respective lease, and one license which is 299 3,016 March 2006 projected to continue for the life of the analysis. 450 3,085 May 2006 620 5,076 May 2006 All speculative new and renewal tenants are assumed to pay for a 808 3,564 July 2006 certain number of reserved spaces as determined by the size of the 824 2,075 July 2006 premises. Reserved parking spaces allotted for all suites less than 925 1,531 July 2006 5,000 square feet are two, for all suites between 5,000 and 10,000 927 437 July 2006 Total Vacancy 33,263 square feet are four, and for suites 10,000 square feet and larger are six. The current rate of $65 per month is assumed for this speculative parking revenue, and projected to grow at the general Real Estate Tax and Operating Expense Recovery growth rate. Parking income is assumed to continue along this NNN Leases methodology over the life of the analysis.

With the exception of Nate’s Place and the storage space, all Vacancy/Credit Loss tenants are required to pay their pro-rata share of operating 2% for all tenants. expenses and real estate taxes. All leases at Cypress Financial Center include a 95% gross-up provision. Any additional tenant Operanting Expenses specific terms are detailed in the rent roll. With the exception of Operating Expenses storage space, all new and renewal tenants are assumed to pay All operating expenses have been projected using the 2005 their pro-rata share of operating expenses and real estate taxes. budget and adjusted for one-time and extraordinary items, as Operating expense escalations for new and renewal tenants are further detailed at the back of this financial section. All operating subject to a 95% gross-up clause. expenses are projected to grow at the General Growth Rate and are recoverable from tenants. Other Income Other income includes net tenant services income, interest Real Estate Taxes income and miscellaneous revenue and concession/ Cypress Financial Center is under the taxing authority of the vending income. Broward County Revenue Collector. Assessments are done annually at the beginning of the year. Also included is the ground rent payable by Nautical Furnishings of $2,000 per annum, well below market (see Property Section for Real estate taxes are billed annually on November 1st of that detail). The ground lease expires July 2011 but is subject to five, calendar year and are due no later than March 31st. Owners who five-year renewal options at Fair Market Value. The analysis pay their real estate taxes prior to the due date are eligible for a projects that the ground rent escalates to $5,000 for the first percentage discount of 1% to 4%; the earlier paid the higher the renewal term and an additional $500 for each subsequent renewal discount. Real Estate Taxes are projected to grow at the General term period. Growth Rate and are recoverable from tenants. B0788_Brochure_PRESS 9/28/05 2:55 PM Page 31

Cypress Financial Center

31 Capital Expenditures Tenant Improvements Leasing Commissions The following table outlines the assumed tenant improvement The schedule below details the commission structure that is structure for this analysis. The 2005 tenant improvement projected in the model for all new and renewal tenants. Leasing allowances shown below are assumed to grow at the General Commissions are calculated based upon the gross rent over the Growth Rate. No tenant improvements have been assumed for lease term. storage space.

TENANT IMPROVEMENT ALLOWANCES LEASING COMMISSION RATES (%)

Lease Type Term Allowance $ PSF Building Broker Cooperating Broker Total New Leases 5 years 12.00 Without Cooperating Broker 4.0 0.0 4.0 Renewal Leases 5 years 5.00 With Cooperating Broker 2.0 4.0 6.0 New Leases 7 years 15.00 New Leases - Weighted Average @ 80% Cooperating 5.6 Renewal Leases 7 years 5.00 Without Cooperating Broker 2.0 0.0 2.0 New Leases 10 years 20.00 With Cooperating Broker 2.0 2.0 4.0 Renewal Leases 10 Years 7.50 Renewal Leases - Weighted Average @ 50% Cooperating 3.0 Financial Information Financial B0788_Brochure_PRESS 9/28/05 2:55 PM Page 32

32 Adjustments to 2005 Operating Expense Budget This analysis assumes the exclusion of one-time items, extraordinary expenses and redundant contingencies in the 2005 budget, while adjusting for updated ﬁnancial information. The footnotes following the chart denote any such exclusions from the 2005 budget.

EXPENSE DETAIL Expense Detail Budget CY 2005 Expenses PSF (1) Adjusted CY 2005 Expenses PSF (1) Projected CY 2006 Expenses PSF (1) Cleaning (2) $159,001 $0.80 $153,873 $0.77 $197,789 $1.00 Repairs & Maintenance (3) $243,131 $1.22 $234,131 $1.18 $241,155 $1.21 Landscaping (4) $44,844 $0.23 $32,344 $0.16 $33,314 $0.17 Security $107,386 $0.54 $107,386 $0.54 $110,608 $0.56 Fire/Life Safety $10,260 $0.05 $10,260 $0.05 $10,568 $0.05 Utilities (5) $357,729 $1.80 $346,127 $1.74 $444,194 $2.24 Management Fees (6) $91,933 $0.46 $60,668 $0.31 $86,168 $0.43 General & Administrative (7) $242,166 $1.22 $200,000 $1.01 $206,000 $1.04 Real Estate Taxes $588,109 $2.96 $588,109 $2.96 $605,752 $3.05 Insurance (8) $198,192 $1.00 $69,538 $0.35 $71,624 $0.36 NR - Operating (9) $23,346 $0.12 $0 $0.00 $0 $0.00 Total Expenses $2,066,097 $9.36 $1,802,436 $9.07 $2,007,172 $10.10

(1) Based on total NRA of 198,680 sf. (2) Adjusted for occupancy. (3) Removed $4,200 for eddy current testing, $1,500 to reposition camera, $300 for decorative ﬂags and $3,000 for holiday decorations. (4) Removed $6,000 for plant replacement and irrigation repairs and $6,500 for garage pressure washing. (5) Adjusted for occupancy. Utilities expense is 67% variable. (6) Reduced to 1.75% of EGR, assuming a third-party management company will take a reduced fee to secure the leasing commissions associated with current vacancy lease-up and future rollover. (7) Adjusted to a market rate of $1.00 psf. (8) Insurance adjusted to market rate of $0.35 psf. (9) Removed $18,080 for Advertising and Promotional expenses, $1,200 for non-operating legal fees, $3,684 for non-operating professional fees, and $382 for non-operating other utilities. B0788_Brochure_PRESS 9/28/05 2:55 PM Page 33

Cypress Financial Center

33 Disclaimer Transaction Guidelines This brochure is provided for the sole purpose of allowing a This offering is being distributed to a select group of qualified potential investor to evaluate whether there is interest in investors exclusively by Jones Lang LaSalle. The prospective proceeding with further discussions regarding a possible purchase investor will be selected by the Owner in its sole and absolute of or investment in CYPRESS FINANCIAL CENTER (the “Property”). discretion on the basis of a variety of factors, including, but not The potential investor is urged to perform its own examination limited to: i) offer price, quickest timeframe to hard earnest and inspection of the Property and information relating to same, money and other terms of the transaction; ii) prospective and shall rely solely on such examination and investigation and investor’s financial strength; iii) level of discretion to invest not on this brochure or any materials, statements or information funds; iv) ability to close in a timely fashion; v) experience in contained herein or otherwise provided. closing similar transactions; vi) industry reputation; vii) level of demonstrated Property due diligence completed; viii) Neither Jones Lang LaSalle, nor any of its respective partners, thoroughness and disclosure of Property underwriting; and ix) directors, officers, employees and agents (“Agents”), make any level of hard earnest money at contract signing. representations or warranties, whether express or implied, by operation of law or otherwise, with respect to this brochure or Following the distribution of the offering materials, members of the Property or any materials, statements (including financial the Jones Lang LaSalle team will be available to review statements and projections) or information contained herein or information contained in the Offering Memorandum and assist relating thereto, or as to the accuracy or completeness of such prospective investors with on-site Property inspections and materials, statements or information, or as to the condition, market tours. quality or fitness of the Property, or assumes any responsibility All offers must be presented in writing and be net of all transfer with respect thereto. Such materials, statements and information taxes and recordation fees. have in many circumstances been obtained from outside sources, and have not been tested or verified. Projections, in particular, are based on various assumptions and subjective determinations as to which no guaranty or assurance can be given. Jones Lang LaSalle 153 E. 53rd Street Without limiting the foregoing, in the event this brochure contains New York, New York 10022 information relating to asbestos or any other hazardous, toxic or Fax: 212.421.5242 dangerous chemical, item, waste or substance (“Hazardous Materials”) in relation to the Property, such information shall in no Thomas L. Beneville way be construed as creating any warranties or representations, Managing Director expressed or implied, by operation of law or otherwise, by Agents 212.812.5740 or the owner, as to the existence or non-existence or nature of [email protected] Hazardous Materials in, under, on or around the Property. Jay J. Miele This brochure is provided subject to errors, omissions, change of Vice President price or terms and other changes to the materials, statements and 212.812.5751 information contained herein or relating to the Property, and is [email protected] subject to withdrawal, all without notice. The contents hereof are confidential and are not to be reproduced or distributed Ashley Fitzgerald to any person or entity without the prior written consent of Analyst Agents or used for any purpose other than initial evaluation as 212.812.5741 indicated above. ashley.fi[email protected] Financial Information Financial B0788_Brochure_PRESS 9/28/05 2:55 PM Page 34

CD CONTENTS:

1. Argus v. 12.0 2. Rent Roll B0788_Brochure_PRESS 9/28/05 2:55 PM Page 35