12402 Industrial Boulevard | Victorville, California

:: OFFERING MEMORANDUM Capital Markets | Private Client Group

:: INDUSTRIAL INVESTMENT 12402 Industrial Boulevard | Victorville, California

Replacement Cost. 50% Below Industrial/Office Incubator Park Park Industrial/Office Incubator Institutional Quality Institutional Quality Priced at Priced Add Value

Capital Markets | Private Client Group TABLE OF CONTENTS

01 Property Summary Investment Summary Investment Highlights

02 Property Location Aerial Photographs Local and Regional Maps

03 Property Description Property Description Site Plan

04 The Market City Overview County Overview Sale Comparables

05 Financials Executive Summary Financing Assumptions Cash Flor Projections Leveraged Summary In-Place NOI vs. Pro-Forma NOI IPRO Forma Income Existing vs. Market Comparison Vacant Space Assumptions Lease Expirations For more information on Foxborough Business Park, please visit our website at Rent Roll www.pcgnb.com/FoxboroughBP Replacement Cost

Property Summary Investment Summary Investment Highlights 01

FOXBOROUGH BUSINESS PARK | Property Summary PROPERTY SUMMARY Investment Summary Investment Highlights

Foxborough Business Park “Value Add” Industrial/Office Park Opportunity Priced at $8,250,000 ($64 PSF) which is significantly below 12402 Industrial Boulevard xx Rare opportunity to acquire a seven building business the estimated replacement cost of $16,095,765 ($126 PSF) Victorville, CA 92395 park that is divided into 35 units. xx Low future risk once the project is leased, of major Ideal Victorville Business Park Location Purchase Price...... $8,250,000 vacancy due to 35 separate units ranging from 805 to xx Immediate I-15 freeway access via the 4-way interchange Price PSF...... $64 13,650 SF the largest only equating to 10.74% of the at Bear Valley Road. Year 1 NOI...... $675,847 total building area. xx Centrally located off of Bear Valley Road, one of Year 1 In-Place Cap Rate...... 7.80% xx Many of the existing tenants have been located within Victorville’s major East/West thoroughfares and is Building Size...... 128,047 SF the Foxborough Business Park for over 8 years. home to numerous retail amenities such as Sears, Vons, Land Size...... 346,302 SF xx Existing vacant units require little to no additional capital Walmart, Home Depot, Lowes and many more national Estimated Replacement Cost...... $126 PSF and are available for immediate occupancy. Also, retailers. smaller unit sizes will require less capital for tenant xx Victorville is an ideal business community because of it’s improvements when spaces become vacant. affordable housing and access to a deep labor pool. xx A wide variety of suite sizes and types allows tenants to The property is within 5 miles of 173,473 people with expand and contract throughout the business park which an estimated average household income of $61,036. will limit future vacancy. xx Ideal business park amenities, within 2 miles of xx Limited available office in Victorville and Hesperia the following: 14 restaurants, 9 grocery stores, 9 has resulted in one of the lowest vacancy rates in all pharmacies, 9 banks and 5 shopping centers. of Southern California. Between 1,000 and 15,000 square feet, there is 2,151,188 square footage of office space in the market with a vacancy rate of 7.6%. For industrial space between 2,000 and 20,000 square feet, there is 2,894,036 square feet where the vacancy rate is 6.1%. This low vacancy will help to increase tenant retention and limit downtime.

Property Location Aerial Photographs Local and Regional Maps 02

FOXBOROUGH BUSINESS PARK | Property Location PROPERTY LOCATION | Aerial Photographs

HI DESERT PLAZA THE MALL OF VICTOR VALLEY

Moja ve (I-15) Freeway

H DESERT VALLEY HOSPITAL

Hesp eria Road

d oa t R e y e le r al t V S ar e Be in m s

i S

Indus trial Bo ulevard

7 FOXBOROUGH BUSINESS PARK | Aerial Photographs

Industr ial Bou levard

t e e tr S e in m s a J

8 PROPERTY LOCATION | Local and Regional Maps

Foxborough Business Park

Property Description Property Description Site Plan Floor Plans 03

FOXBOROUGH BUSINESS PARK | Property Description PROPERTY DESCRIPTION

Property Description Parcel Statistics

Address :: 12402 Industrial Boulevard Victorville, CA 92395

County :: San Bernardino

Property Type :: Office/Industrial Business Park

Total Buildings :: Seven (7)

Number of Units :: Thirty-Five (35)

Parking :: 396 spaces

Year Built :: 1991

Construction Type :: Reinforced Concrete Tilt-up

Fire Sprinklers :: Yes

Loading :: Ground Level

Power :: 100 amps per unit

PARCEL LAND SIZE BUILDING OFFICE INDUSTRIAL Zoning :: M-2T BUILDING NUMBER NUMBER (SF) SIZE (SF) SPACE (SF) SPACE (SF)

12402 Industrial Boulevard 3091-261-07 346,302 128,047 46,532 81,515

TOTAL 346,302 128,047

11 FOXBOROUGH BUSINESS PARK | Site Plan

Building C JASMINE STREET Multi-Tenant Building A Multi-Tenant

Building E Building F Building G Industrial Industrial Industrial Divisible Divisible Divisible

Building D Multi-Tenant Building B Multi-Tenant

INDUSTRIAL BOULEVARD

12 PROPERTY DESCRIPTION | Floor Plans

F2 F1 A1 G1

E1, 2 & 3 F1&F2A A2 G2 Building C

A11 F3 G3 A3 A10

A4 A9 E4 F4 G4

D1 E5 A5 A8 G5 F5 & 6 G6 A6 A7 D2 E6 D3 D3 A E7 F7 G7 D4 G8 E8

D5A B1 B2 B3 B4 B5 B6 B7 E9 F8, 9 & 10 G9

E10 G10 D7 Suite Tenant Sq. Ft. BUILDING A 10,858 Suite Tenant Sq. Ft. Suite Tenant Sq. Ft. A01 American Univ. of Med Tech. 2,418 BUILDING C 11,375 BUILDING F 26,970 A02_10 Good Deal Realty 1,433 C01-07 Desert Valley Medical Group 11,375 F01-02 Lifecare Solutions 4,500 A03 Strands Hair Co. 1,298 BUILDING D 12,348 F01-02A Management Office 1,000 A04 Desert Valley Hospital 1,242 D01-02 Smart Fit 3,948 F03 Desert Valley Medical Group 2,720 A05 Advanced Micro Technologies 680 D03-07 County of San Bernardino 8,400 F04 Desert Valley Medical Group 2,550 A06 James Hearing Aid Center 1,064 BUILDING E 27,300 F05-06 FleetPride Inc. 5,100 A07 VACANT 805 E01-03 VACANT 8,550 F07 Desert Valley Medical Group 2,550 A08 VACANT 829 E04 Victor Valley Community Hospital 2,550 F08-10 Iglesia Mision Christiana 8,550 A09 VACANT 778 E05 VACANT 2,800 BUILDING G 27,300 A11 Victoria Staging & ReDesign 311 E06 VACANT 2,550 G01-05 Bear Valley Rentals 5,400 BUILDING B 11,896 E07 VACANT 2,550 G02-03 Desert Valley Medical Group 5,700 B01 Glenn P Matney, M.D. 1,650 E08 R & R Electric 2,850 G04 VACANT 2,550 B02-05 VACANT 6,746 E09-10 Mojave Copy & Printing 5,450 G06-10 Desert Valley Medical Group 13,650 B06 Roger Moushabek, M.D. 1,750 TOTAL 128,047 B07 Omaha Woodman Life Insurance 1,750

The Market City Overview County Overview Sale Comparables 04

FOXBOROUGH BUSINESS PARK | The Market THE MARKET

City Overview Victorville is a city located in the Victor Valley of southwestern San Bernardino County. Victor Valley The community was incorporated on September 21, 1962, and has a population of over Victor Valley is a subregion of Southern California north of the San Bernardino Mountains 107,000. Estimates suggest that this figure more than doubles during business hours to in the Mojave Desert. It is located in San Bernardino County and situated east of the accommodate the needs of the more than 300,000 people who call the Victor Valley Antelope Valley and north of the Cucamonga Valley. The Victor Valley is part of the 14th home. Victorville is accessible via Interstate 15 and Highway 395, linking the city with largest metropolitan area, the Inland Empire. Out of 6 incorporated cities, the largest all other areas of Southern California and to Las Vegas. An integral part of the high one is Victorville. The Victor Valley ranks second to Coachella Valley and Imperial Valley desert, Victorville enjoys the advantage of being right in the middle of two highly popular in the fastest-growing overall in California, the United States and some say all of North destinations in the United States. High desert living in Victorville offers outstanding America. opportunities for plentiful, secure employment, home ownership, higher education, safe neighborhoods and nearby desert, lake and mountain recreation. The Victor Valley includes the communities of Adelanto, Apple Valley, Hesperia, Lucerne Valley, Oak Hills, Phelan, Victorville and Wrightwood. Victorville is the business hub Victorville is the multimodal transportation hub of Southern California. Transporting of the area and draws consumers from well beyond its immediate area. It is the largest cargo via truck, rail or air, Victorville brings them all together and on their way within a commercial center between San Bernardino and the Nevada border. The Victor Valley pro-business, fast track environment. 60% of all goods moving into and out of Southern has an estimated population of 350,000. The urban sprawl is in a 10 mile radius from California travel through Victorville. Victorville in an otherwise “rural” desert region. xx Southern California Logistics Airport (SCLA): A 5,000-acre international logistics hub Top 10 Employers for Victorville with multimodal capabilities, including ground transportation services and a 2-hour Company Name No. of Employees

turnaround. Many major corporations are relocating to SCLA, including Boeing, Verizon Directories Corp 800 General Electric Aircraft Engineering and Pratt & Whitney. Victor Valley Union High School District Financing 800 xx BNSF Logistics Facility (proposed): BNSF Railway Company and the City of Victorville Victor Valley Community Hospital 620 signed an exclusive Memorandum of Understanding (MOU) in January 2007 to explore development of a major intermodal logistics center at Victorville’s railway Victor Valley Community College District 600 center, adjacent to SCLA, nationally recognized for its unique development through Victor Elementary School District 575 public-private partnerships. Desert Valley Medical Group Inc 565 xx Major Routes: Victorville, with easy freeway access, is located off I-15, US-395 and City of Victorville 502 SR-18 between Los Angeles and Las Vegas—just 40 miles from I-10 and I-40. Other nearby main routes include SR-60, I-215, I-210, SR-138 and other major highways. County of San Bernardino 500 xx Western U.S. delivery in 24-hours: Cargo can be cleared and transported to the West Victorville City Office 450 and points eastward within 24-hours via ground or rail. Walmart 400 xx Ports of Los Angeles and Long Beach: Express access from Victorville to both deep- water ports, less than 100-miles, via Union Pacific Railway and BNSF. xx U.S. Customs Point of Entry: Victorville’s secured Port of Entry designation allows businesses to bypass lengthy seaport Customs inspections. Open 24/7. 15 THE MARKET | County Overview

San Bernardino County Located on the eastern edge of the Los Angeles metropolitan region, San Bernardino County acts as the gateway between Southern California and the continental United States. Encompassing over 20,000 square miles, San Bernardino County is the largest county in the United States. About 90 percent of the county is desert; the remainder consists of the San Bernardino Mountains and the San Bernardino Valley. Popular attractions in the area include the San Bernardino National Forest, Joshua Tree National Monument, Death Valley National Monument, and the East Mojave Scenic Area. Its southwestern portions (the more urbanized part of San Bernardino County) are considered to be part of the Inland Empire region of Southern California, a bi-county area. The fast growing county has a population of 2.05 million with a projected 2012 population of 2.35 San Bernardino Train Station million. (12th in the country but only 4th in the state), largely located in its more populated southwestern portions. LA/Ontario International Airport (ONT) is located 35 in the top tier for various measures of growth from miles east of downtown Los Angeles on the western population and job creation to construction and San Bernardino County has one of the largest networks border of San Bernardino County. As the second office space absorption over the last decade. Called of arterials in Southern California, which serve as the largest air cargo airport in Southern California ONT by other names, such as the San Bernardino Valley, backbone of the transportation system connecting the local is serviced by 13 major air freight carriers and is the Inland Southern California, and “The IE,” this region access system to the regional freeway network. Many major west coast’s air and truck hub for UPS and a major is most commonly called the Inland Empire by locals. arterials in the Valley area carry significantly high daily distribution point for FedEx. ONT provides more than It is generally considered to be the area between traffic (ADT) volumes. In addition, the ports of Los Angeles 380 daily flights to every major city in the United the southern coastal areas of Orange County, Los and Long Beach, which are two of the busiest ports in States and services over 7.2 million passengers Angeles, and the Palm Springs CA, and other desert the world, send and receive a large portion of the goods annually. cities. traveling into and out of the United States through San Bernardino County either by truck or rail. Inland Empire Inland Empire contains over 50 cities, including With a population of over 4.2 million people Riverside, San Bernardino, Chino Hills, Rancho and the largest region of Southern California, the Cucamonga, Ontario and Temecula’s Wine Country Inland Empire, comprised of both Riverside and San to the south. The Inland Empire also includes the Bernardino Counties, is one of the most significant San Bernardino Mountains to the north including economies in the United States. It has been rated Big Bear and Lake Arrowhead. Boasting the 13th

16 There are many factors that continue to contribute to the sustained economic growth of the Inland Empire including:

xx Tremendous Population Growth xx Diverse Employment Base xx Accessibility to Major Metropolitan Areas xx Efficient Transportation and Freight Routes xx Access to the Expanded Ontario International Airport and Ports xx Quality New Construction in the Residential, Office, Retail and Industrial Segments xx Access to an Abundant and Educated Labor Pool San Bernardino International Airport xx Significant Public and Private Investment in Area xx Affordable and Executive Level Housing x largest metropolitan market, the region has been rated growing number of Fortune 500 corporations, including x Excellent Quality of Life in the top tier for various measures of growth, including Wal-Mart, Home Depot, Target, Costco Wholesale, population and job creation. Walgreens, United Parcel Service, Lowe’s, FedEx, “Companies are coming here because of the Inland Anheuser-Busch, Staples, Kohl’s, Toys “R” Us, Black & Empire’s lower costs of living and doing business. The As California’s job creation leader for more than a Decker, Fisher Scientific International, Big Lots and Ross Inland Empire offers significant benefits to companies decade, the Inland Empire is attracting the interest Stores, have capitalized on the region’s competitive outside of California who have compelling reasons to be of business, real estate, and site selection executives advantages and have established operations in the doing business here and those already in California who around the country and the world. The Inland Empire Inland Empire. need to relocate but don’t want to pack up and leave the offers a strategic West Coast location, vast amounts of state.” available land for future growth, a highly-skilled and – Paul Hiller, CEO, The Inland Empire Economic educated work force, a sophisticated transportation Partnership infrastructure, and access to 27 colleges and universities (including seven research institutions). The area features a changing economic landscape with emerging technological productivity, and employs an excess of 1.7 million people. The Inland Empire is a key distribution hub for many leading companies. A

17 FOXBOROUGH BUSINESS PARK | Sale Comparables

SALES PRICE ADDRESS BLDG SF $/PSF SALE DATE Type CAP RATE 1 15372 Bonanza Rd $1,400,000 13,248 $106 8/12/2010 Industrial Foxborough Victorville, CA Business Park 2 18925 Navajo Rd $6,611,592 70,000 $94 2/3/2010 Industrial Apple Valley, CA

3 13010 Hesperia Rd $2,100,000 18,256 $115 1/4/2010 Office Victorville, CA

4 12520 Business Center Dr $1,250,000 10,597 $118 6/4/2009 Industrial Victorville, CA

5 2143 & 2151 $8,750,000 125,301 $70 8/26/2010 Office Convention Center Dr Ontario, CA

6 9333 Baseline Rd $2,150,000 21,020 $102 9/23/2010 Office Rancho Cucamonga, CA

7 1230 E Belmont St $2,352,000 28,000 $84 3/15/2010 Industrial Ontario, CA

$3,516,227 40,917 $86

18 19 Financials Replacement Costs 05

FOXBOROUGH BUSINESS PARK | Financials FINANCIALS | Executive Summary

PROPERTY DESCRIPTION TOTAL Property Type Office / Industrial Size of Improvements 128,047 SF Property Owner American Spectrum Realty Advisors, Inc. Currently Vacant as of 1/1/11 30,708 SF Property Address 12402 Industrial Blvd Current Occupancy as of 1/1/11 76.02% Victorville, CA

ACQUISITION AND RESIDUAL SUMMARY LEVERAGE SUMMARY [1]

MARKET LOAN Purchase Price as of January 1, 2011 $64 PSF $8,250,000 Initial Loan Funding (as of Jan-11) $4,950,000 'Costs to Stabilize' [2] Loan-To-Total Investment/Value 57.10% Lease-Up Downtime (18 Months) 236,162 Loan-To-Price 60.00% Tenant Improvements 134,800 Funding Date Jan-11 Leasing Commissions 47,776 Maturity Date Dec-21 Total Costs to Stabilize $418,738 Loan Term 11.0 Years Total Investment $68 PSF $8,668,738 [3] Amortization Period 25 Years Interest Rate 6.00% Year 1 Year 2 Year 3 Capitalization Rate 7.80% 7.66% 8.01% Origination Fee on Initial Loan Funding 1.00% Cash Return 9.66% 5.16% 7.47% Loan Constant 7.73% Leveraged Cash Return 12.06% 1.70% 7.02% Debt Service Coverage Ratio (NOI) 1.77x Debt Service Coverage Ratio (CF) 1.24x

3-Year 5-Year 7-Year Total Investment as of January 1, 2011 100% $8,668,738 Average Capitalization Rate 7.82% 7.88% 8.18% Total Initial Loan Principal -57% (4,950,000) Average Cash Return 7.43% 6.89% 7.07% Total Initial Loan Fees 1% 49,500 Average Leveraged Cash Return 6.93% 5.70% 6.11% Holdbacks and Escrows 0% 0 Initial Equity 43% $3,768,238 Net Residual Value as of December 31, 2021 $11,479,000 Net Residual Per Square Foot $90 Residual Capitalization Rate 8.00% Residual Cost of Sale 3.00%

ALL CASH IRR 9.09% LEVERAGED IRR 11.84%

[1] Leveraged analysis is based on financing that a particular investor may or may not be able to obtain. [2] Costs to stabilize assume and include 18 months of downtime, tenant improvements and leasing commissons associated with the lease up of the initial vacant space. [3] All returns are based on Total Investment. 21

12/29/2010 11:37 AM CB Richard Ellis Financial Consulting Group 2 FOXBOROUGH BUSINESS PARK | Financing Assumptions

GLOBAL VACANT SPACE LEASING SECOND GENERATION LEASING

Bldg A Bldg B Bldg C Bldg D Bldgs E, F, G Analysis Period Occupancy and Absorption Retention Ratio 70% 70% 70% 70% 70% Commencement Date January 1, 2011 Projected Vacant at 1/1/11 30,708 SF End Date December 31, 2021 Currently Vacant as of 1/1/11 30,708 SF Financial Terms Term 11 Years Percentage Vacant at 1/1/11 23.98% 2011 Monthly Market Rent $1.05 PSF $1.05 PSF $0.80 PSF $0.85 PSF $0.55 PSF Absorption Period 18 Month(s) Rent Adjustment 3.00% Annually 3.00% Annually 3.00% Annually 3.00% Annually 3.00% Annually Area Measures Absorption Period Start Date January 1, 2011 Lease Term 3 Years 3 Years 5 Years 3 Years 3 Years Building Square Feet (NRSF) 128,047 SF First Absorption Occurs On May 1, 2011 Expense Reimbursement Type FSG w/BY Modified Gross Modified Gross Modified Gross Modified Gross Last Absorption Occurs On July 1, 2012 Growth Rates Consumer Price Index (CPI) 3.00% Financial Terms Bldg A Bldg B Bldgs E, F, G Tenanting Costs Other Income Growth Rate 3.00% 2011 Monthly Market Rent $1.05 PSF $1.05 PSF $0.55 PSF Rent Abatements Operating Expenses 3.00% Rent Adjustment 3.00% Annually 3.00% Annually 3.00% Annually New 0 Month(s) 0 Month(s) 0 Month(s) 0 Month(s) 0 Month(s) Real Estate Taxes 2.00% Lease Term 3 Years 3 Years 3 Years Renewal 0 Month(s) 0 Month(s) 0 Month(s) 0 Month(s) 0 Month(s) Market Rent Growth Expense Reimbursement Type FSG w/BY Modified Gross Modified Gross Weighted Average 0.00 Month(s) 0.00 Month(s) 0.00 Month(s) 0.00 Month(s) 0.00 Month(s) CY 2012 - 0.00% Rent Abatements 0 Month(s) 0 Month(s) 0 Month(s) CY 2013 - 3.00% Tenant Improvements ($/NRSF) $5.00 PSF $15.00 PSF $1.00 PSF Tenant Improvements ($/NRSF) CY 2014 - 6.00% Commissions 6.00% 6.00% 6.00% New $5.00 PSF $5.00 PSF $10.00 PSF $5.00 PSF $1.00 PSF CY 2015 - 5.00% Renewal $2.50 PSF $2.50 PSF $5.00 PSF $2.50 PSF $0.50 PSF CY 2016 - 4.00% EXPENSES Weighted Average $3.25 PSF $3.25 PSF $6.50 PSF $3.25 PSF $0.65 PSF CY 2017 - 3.00% CY 2018 - 3.00% Operating Expense Source 2010 Budget [2] Commissions CY 2019 - 3.00% New 6.00% 6.00% 6.00% 6.00% 6.00% CY 2020 - 3.00% Management Fee (% of EGR) 3.00% Renewal 3.00% 3.00% 3.00% 3.00% 3.00% CY 2021+ - 3.00% Weighted Average 3.90% 3.90% 3.90% 3.90% 3.90% Real Estate Taxes Reassessed Yes [3] General Vacancy Loss 5.00% [1] Millage Rate 1.178000% Downtime Special Assessments $5,437 New 6 Month(s) 6 Month(s) 6 Month(s) 6 Month(s) 6 Month(s) Capital Reserves (CY 2011 Value) $0.15 PSF Weighted Average 2 Month(s) 2 Month(s) 2 Month(s) 2 Month(s) 2 Month(s)

Notes: All market rent rates are stated on calendar-year basis. [1] General Vacancy Loss factor includes losses attributable to projected lease-up, rollover downtime, and fixturing downtime. All tenants are subject to this loss factor. [2] Operating Expenses are based on 2010 Budget, grown 3% for 2011. [3] Real Estate Taxes have been reassessed at the estimated purchase price based on a millage rate of 1.178000% plus special assessments of $5,437.

22 This page is part of a package and is subject to the disclaimer on the Executive Summary. 12/29/2010 11:37 AM CB Richard Ellis Financial Consulting Group 3 FINANCIALS | Cash Flow Projections

Calendar Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Physical Occupancy 77.64% 89.00% 99.30% 96.13% 89.56% 99.36% 95.17% 89.16% 99.40% 97.52% 88.21% 97.98% Overall Economic Occupancy [1] 81.71% 90.34% 95.00% 95.00% 90.45% 95.00% 93.99% 90.26% 95.00% 95.00% 88.66% 95.00% Weighted Average Market Rent $0.69 $0.69 $0.71 $0.75 $0.79 $0.82 $0.85 $0.87 $0.90 $0.93 $0.95 $0.98 Weighted Average In Place Rent [2] $0.75 $0.70 $0.70 $0.71 $0.77 $0.79 $0.81 $0.87 $0.88 $0.90 $0.94 $0.96 Total Operating Expenses PSF Per Year $2.68 $2.74 $2.82 $2.89 $2.95 $3.05 $3.13 $3.21 $3.31 $3.40 $3.47 $3.58 [3] CY 2011 REVENUES $/SF/YR Scheduled Base Rent Gross Potential Rent $8.81 $1,128,272 $1,069,106 $1,073,999 $1,100,200 $1,171,826 $1,212,526 $1,259,090 $1,313,674 $1,352,723 $1,394,175 $1,437,058 $1,475,977 Absorption & Turnover Vacancy (1.78) (228,150) (108,453) (11,607) (52,041) (112,069) (12,221) (75,863) (128,122) (10,761) (39,659) (163,118) (34,346) Base Rent Abatements 0.00 000000000000 Total Scheduled Base Rent 7.03 900,122 960,653 1,062,392 1,048,159 1,059,757 1,200,305 1,183,227 1,185,552 1,341,962 1,354,516 1,273,940 1,441,631 Expense Reimbursements 0.93 118,886 54,034 36,587 22,416 2,151 3,054 2,658 1,925 3,304 2,625 1,395 3,179 TOTAL GROSS REVENUE 7.96 1,019,008 1,014,687 1,098,979 1,070,575 1,061,908 1,203,359 1,185,885 1,187,477 1,345,266 1,357,141 1,275,335 1,444,810 General Vacancy Loss 0.00 0 0 (43,922) (4,090) 0 (48,558) 0 0 (57,040) (30,181) 0 (39,612) EFFECTIVE GROSS REVENUE 7.96 1,019,008 1,014,687 1,055,057 1,066,485 1,061,908 1,154,801 1,185,885 1,187,477 1,288,226 1,326,960 1,275,335 1,405,198 OPERATING EXPENSES Electricity (0.31) (39,331) (40,511) (41,727) (42,978) (44,268) (45,595) (46,963) (48,372) (49,823) (51,318) (52,857) (54,443) Water & Sewer (0.09) (11,330) (11,670) (12,020) (12,381) (12,752) (13,135) (13,529) (13,934) (14,353) (14,783) (15,227) (15,683) Gas (Bldg A) (0.02) (2,678) (2,758) (2,841) (2,926) (3,014) (3,105) (3,198) (3,294) (3,392) (3,494) (3,599) (3,707) Rubbish Removal (0.20) (26,141) (26,925) (27,733) (28,565) (29,422) (30,305) (31,214) (32,150) (33,115) (34,108) (35,131) (36,185) Landscaping (0.01) (824) (849) (874) (900) (927) (955) (984) (1,013) (1,044) (1,075) (1,107) (1,141) Lighting Maintenance (0.01) (1,545) (1,591) (1,639) (1,688) (1,739) (1,791) (1,845) (1,900) (1,957) (2,016) (2,076) (2,139) Parking Lot Maintenance (0.00) (309) (318) (328) (338) (348) (358) (369) (380) (391) (403) (415) (428) Pest Control (0.02) (2,668) (2,748) (2,830) (2,915) (3,003) (3,093) (3,186) (3,281) (3,380) (3,481) (3,586) (3,693) Alarm/Fire/Security Svcs (0.14) (18,077) (18,619) (19,178) (19,753) (20,346) (20,956) (21,585) (22,232) (22,899) (23,586) (24,294) (25,023) Repairs & Maintenance (0.08) (9,682) (9,972) (10,272) (10,580) (10,897) (11,224) (11,561) (11,908) (12,265) (12,633) (13,012) (13,402) Porter, Janitorial & Supplies (0.42) (53,251) (54,849) (56,494) (58,189) (59,934) (61,733) (63,584) (65,492) (67,457) (69,480) (71,565) (73,712) Roof Repairs (0.01) (1,200) (1,236) (1,273) (1,311) (1,351) (1,391) (1,433) (1,476) (1,520) (1,566) (1,613) (1,661) Management Fee (0.24) (30,570) (30,441) (31,652) (31,995) (31,857) (34,644) (35,577) (35,624) (38,647) (39,809) (38,260) (42,156) Insurance (0.33) (42,494) (43,769) (45,082) (46,434) (47,827) (49,262) (50,740) (52,262) (53,830) (55,445) (57,108) (58,822) Property Taxes (0.80) (102,623) (104,567) (106,549) (108,571) (110,634) (112,738) (114,884) (117,073) (119,306) (121,583) (123,906) (126,275) TOTAL OPERATING EXPENSES (2.68) (342,723) (350,823) (360,492) (369,524) (378,319) (390,285) (400,652) (410,391) (423,379) (434,780) (443,756) (458,470) NET OPERATING INCOME 5.28 676,285 663,864 694,565 696,961 683,589 764,516 785,233 777,086 864,847 892,180 831,579 946,728 CAPITAL COSTS Tenant Improvements (1.10) (140,651) (165,385) (18,501) (60,578) (102,832) (16,562) (125,015) (147,036) (10,491) (38,997) (170,179) (110,264) Leasing Commissions (0.32) (40,674) (89,195) (8,395) (33,926) (84,362) (7,961) (51,762) (107,966) (6,868) (22,109) (124,486) (39,774) Capital Reserves (0.15) (19,207) (19,783) (20,377) (20,988) (21,618) (22,266) (22,934) (23,622) (24,331) (25,061) (25,813) (26,587) TOTAL CAPITAL COSTS (1.57) (200,532) (274,363) (47,273) (115,492) (208,812) (46,789) (199,711) (278,624) (41,690) (86,167) (320,478) (176,625) OPERATING CASH FLOW $3.72 $475,753 $389,501 $647,292 $581,469 $474,777 $717,727 $585,522 $498,462 $823,157 $806,013 $511,101 $770,103 ACQUISITION & RESIDUAL SALE Purchase Price ($8,250,000) 00000000000 Lease-Up Downtime (18 Months) ($236,162) 207,699 28,463 000000000 Tenant Improvements ($134,800) 121,800 13,000 000000000 Leasing Commissions ($47,776) 31,865 15,911 000000000All Cash Net Residual Value [4] 0000000000011,479,077 IRR CASH FLOW BEFORE DEBT ($8,668,738) $837,117 $446,875 $647,292 $581,469 $474,777 $717,727 $585,522 $498,462 $823,157 $806,013 $11,990,178 9.09% MARKET LOAN [5] Loan Funding / Payoff 4,950,000 0000000000(3,619,112) Loan Fees (49,500) 00000000000Leveraged Annual Debt Service 0 (382,715) (382,715) (382,715) (382,715) (382,715) (382,715) (382,715) (382,715) (382,715) (382,715) (382,715) IRR CASH FLOW AFTER DEBT ($3,768,238) $454,402 $64,160 $264,577 $198,754 $92,062 $335,012 $202,807 $115,747 $440,442 $423,298 $7,988,350 11.84%

NOI Return 7.80% 7.66% 8.01% 8.04% 7.89% 8.82% 9.06% 8.96% 9.98% 10.29% 9.59% UNLEVERAGED Cash Return 9.66% 5.16% 7.47% 6.71% 5.48% 8.28% 6.75% 5.75% 9.50% 9.30% 5.90% LEVERAGED Cash Return 12.06% 1.70% 7.02% 5.27% 2.44% 8.89% 5.38% 3.07% 11.69% 11.23% 3.41% Debt Service Coverage Ratio (NOI) 1.77x 1.73x 1.81x 1.82x 1.79x 2.00x 2.05x 2.03x 2.26x 2.33x 2.17x Debt Service Coverage Ratio (CF) 1.24x 1.02x 1.69x 1.52x 1.24x 1.88x 1.53x 1.30x 2.15x 2.11x 1.34x Rolling - All Cash IRR 2.51% 6.09% 6.69% 6.30% 8.18% 8.50% 8.10% 8.91% 9.10% 8.44% 9.09% Rolling - Leveraged IRR N/M 5.54% 7.16% 6.37% 10.54% 11.14% 10.29% 11.79% 12.02% 10.78% 11.84%

[1] This figure takes into account vacancy/credit loss, absorption vacancy, turnover vacancy, and base rent abatements. [2] This figure does not include any amount related to expense reimbursements. Only Scheduled Base Rent and Fixed/CPI Increases are included in this calculation, which is based on the weighted-average physical occupancy during each fiscal year. [3] Based on 128,047 square feet. [4] Net Residual Value is calculated by dividing Year 12 NOI by the Residual Cap Rate of 8.00% and applying a 3.00% Cost of Sale. [5] Market Debt based on 60% Loan-to-Value, 6.00% Interest Rate, 25-Year Amortization, and 1.00% Loan Fee. 23

This page is part of a package and is subject to the disclaimer on the Executive Summary. 12/29/2010 11:37 AM CB Richard Ellis Financial Consulting Group 4 FOXBOROUGH BUSINESS PARK | Leveraged Summary

Calendar Year Initial 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

NET OPERATING INCOME $676,285 $663,864 $694,565 $696,961 $683,589 $764,516 $785,233 $777,086 $864,847 $892,180 $831,579 $946,728

OPERATING CASH FLOW 475,753 389,501 647,292 581,469 474,777 717,727 585,522 498,462 823,157 806,013 511,101 770,103

ACQUISITION & RESIDUAL SALE Purchase Price ($8,668,738) 00000000000All Cash Net Residual Value 0000000000011,479,077 IRR CASH FLOW BEFORE DEBT ($8,668,738) $837,117 $446,875 $647,292 $581,469 $474,777 $717,727 $585,522 $498,462 $823,157 $806,013 $11,990,178 9.09%

FINANCING MARKET LOAN Loan Funding / Payoff 4,950,000 0000000000(3,619,112) Loan Fees (49,500) 00000000000 Annual Debt Service 0 (382,715) (382,715) (382,715) (382,715) (382,715) (382,715) (382,715) (382,715) (382,715) (382,715) (382,715) TOTAL MARKET LOAN 4,900,500 (382,715) (382,715) (382,715) (382,715) (382,715) (382,715) (382,715) (382,715) (382,715) (382,715) (4,001,828) Leveraged TOTAL FINANCING OBLIGATION 4,900,500 (382,715) (382,715) (382,715) (382,715) (382,715) (382,715) (382,715) (382,715) (382,715) (382,715) (4,001,828) IRR CASH FLOW AFTER DEBT ($3,768,238) $454,402 $64,160 $264,577 $198,754 $92,062 $335,012 $202,807 $115,747 $440,442 $423,298 $7,988,350 11.84%

Combined Leverage Summary Leveraged Cash Return 12.06% 1.70% 7.02% 5.27% 2.44% 8.89% 5.38% 3.07% 11.69% 11.23% 3.41% Leveraged Cash Return (Cumulative Average) - 6.88% 6.93% 6.51% 5.70% 6.23% 6.11% 5.73% 6.39% 6.88% 6.56%

Combined Debt Service Coverage Ratio DSCR (NOI) 1.77x 1.73x 1.81x 1.82x 1.79x 2.00x 2.05x 2.03x 2.26x 2.33x 2.17x DSCR (CF) 1.24x 1.02x 1.69x 1.52x 1.24x 1.88x 1.53x 1.30x 2.15x 2.11x 1.34x

FINANCING ASSUMPTIONS

Description MARKET LOAN

Initial Loan Funding (as of Jan-11) $4,950,000 Loan-To-Value Ratio (Initial Funding) 60.00% Funding Date Jan-11 Maturity Date Dec-21 Remaining Loan Term During Analysis 11.0 Years Amortization Period 25 Years Interest Rate 6.00% Origination Fee on Initial Loan Funding 1.00% Exit Fee on Balance at Maturity 0.00% Loan Constant 7.73% Debt Service Coverage Ratio (NOI) 1.77x Debt Service Coverage Ratio (CF) 1.24x

24 This page is part of a package and is subject to the disclaimer on the Executive Summary. 12/29/2010 11:37 AM CB Richard Ellis Financial Consulting Group 5 FINANCIALS | In-Place vs. Pro Forma NOI Summary

100% Occupancy at Market Rents In-Place NOI [1] Year 3 Pro Forma NOI Jan-2011, Annualized $ PSF Pro Forma $ PSF Jan-11 to Dec-11 $ PSF Size of Improvements 128,047 SF 128,047 SF 128,047 SF REVENUES Scheduled Base Rent Gross Potential Rent $1,119,036 $8.74 $1,073,999 $8.39 $1,060,212 $8.28 Absorption & Turnover Vacancy ($257,640) ($2.01) ($11,607) ($0.09) $0 $0.00 Base Rent Abatements $0 $0.00 $0 $0.00 $0 $0.00 Total Scheduled Base Rent $861,396 $6.73 $1,062,392 $8.30 $1,060,212 $8.28 Expense Reimbursements $122,892 $0.96 $36,587 $0.29 $0 $0.00 TOTAL GROSS REVENUE $984,288 [1] $7.69 $1,098,979 [1] $8.58 $1,060,212 $8.28 General Vacancy Loss $0 $0.00 ($43,922) ($0.34) ($53,011) ($0.41) EFFECTIVE GROSS REVENUE $984,288 $7.69 $1,055,057 $8.24 $1,007,201 $7.87 OPERATING EXPENSES Electricity ($39,336) ($0.31) ($41,727) ($0.33) ($39,331) ($0.31) Water & Sewer ($11,328) ($0.09) ($12,020) ($0.09) ($11,330) ($0.09) Gas (Bldg A) ($2,676) ($0.02) ($2,841) ($0.02) ($2,678) ($0.02) Rubbish Removal ($26,136) ($0.20) ($27,733) ($0.22) ($26,141) ($0.20) Landscaping ($828) ($0.01) ($874) ($0.01) ($824) ($0.01) Lighting Maintenance ($1,548) ($0.01) ($1,639) ($0.01) ($1,545) ($0.01) Parking Lot Maintenance ($312) ($0.00) ($328) ($0.00) ($309) ($0.00) Pest Control ($2,664) ($0.02) ($2,830) ($0.02) ($2,668) ($0.02) Alarm/Fire/Security Svcs ($18,072) ($0.14) ($19,178) ($0.15) ($18,077) ($0.14) Repairs & Maintenance ($9,684) ($0.08) ($10,272) ($0.08) ($9,682) ($0.08) Porter, Janitorial & Supplies ($53,256) ($0.42) ($56,494) ($0.44) ($53,251) ($0.42) Roof Repairs ($1,200) ($0.01) ($1,273) ($0.01) ($1,200) ($0.01) ManagementManagement Fee ($29,532)($29,532) ($0.23)($0.23) ($31,652)($31,652) ($0.25)($0.25) ($30,570)($30,570) ($0.24)($0.24) Insurance ($42,492) ($0.33) ($45,082) ($0.35) ($42,494) ($0.33) Property Taxes ($102,624) ($0.80) ($106,549) ($0.83) ($102,623) ($0.80) TOTAL OPERATING EXPENSES ($341,688) [2] ($2.67) ($360,492) [2] ($2.82) ($342,723) ($2.68) NET OPERATING INCOME $642,600 $5.02 $694,565 $5.42 $664,478 $5.19 Capitalization Rate 7.41% 8.01% 7.67% TOTAL INVESTMENT $8,668,738 $67.70 $8,668,738 $67.70 $8,668,738 $67.70 TOTAL COSTS TO STABILIZE $418,738 $418,738 $418,738 PURCHASE PRICE AS OF JANUARY 1, 2011 $8,250,000 $64.43 $8,250,000 $64.43 $8,250,000 $64.43 Capitalization Rate on Purchase Price 7.79% 8.42% 8.05%

In-Place Occupancy (At Start of Analysis With No Vacant Lease-Up) 76.02% - - Pro-Forma Occupancy - 89.00% 100.00%

Notes:

[1] In-Place Net Operating Income is calculated using contractual rents and expense reimbursements as of January 2011, Annualized (less a 5.00% General Vacancy Loss). In-Place NOI does not include vacant lease-up revenue, downtime due to near-term expirations, or future rent increases for existing tenants. [2] Property Taxes are reassessed based on the purchase price.

This page is part of a package and is subject to the disclaimer on the Executive Summary. 1/3/2011 2:47 PM CB Richard Ellis Financial Consulting Group 1 FOXBOROUGH BUSINESS PARK | IPRO Forma Income

Tenant Suite GLA Start End Annual Monthly PSF Annual PSF Revenue

American Univ. of Med Tech. A01 2,418 08/01/10 07/31/13 $30,467 $2,539 $1.05 $0 $0.00 $30,467 Good Deal Realty A02_10 1,433 02/01/07 06/30/11 $18,056 $1,505 $1.05 $0 $0.00 $18,056 Strands Hair Co. A03 1,298 07/01/02 05/31/13 $16,355 $1,363 $1.05 $0 $0.00 $16,355 Desert Valley Hospital A04 1,242 06/01/09 02/28/11 $15,649 $1,304 $1.05 $0 $0.00 $15,649 Advanced Micro Technologies A05 680 06/01/95 09/30/12 $8,568 $714 $1.05 $0 $0.00 $8,568 James Hearing Aid Center A06 1,064 06/01/05 07/31/11 $13,406 $1,117 $1.05 $0 $0.00 $13,406 VACANT (A07) A07 805 $10,143 $845 $1.05 $0 $0.00 $10,143 VACANT (A08) A08 829 $10,445 $870 $1.05 $0 $0.00 $10,445 VACANT (A09) A09 778 $9,803 $817 $1.05 $0 $0.00 $9,803 Victoria Staging & ReDesign A11 311 03/01/08 01/31/11 $3,919 $327 $1.05 $0 $0.00 $3,919 Glenn P Matney, M.D. B01 1,650 08/01/98 09/30/13 $20,790 $1,733 $1.05 $0 $0.00 $20,790 VACANT (B02-05) B02-05 6,746 $85,000 $7,083 $1.05 $0 $0.00 $85,000 Roger Moushabek, M.D. B06 1,750 11/01/97 12/31/11 $22,050 $1,838 $1.05 $0 $0.00 $22,050 Omaha Woodman Life Insurance B07 1,750 12/01/95 01/31/11 $22,050 $1,838 $1.05 $0 $0.00 $22,050 Desert Valley Medical Group (C C01-07 11,375 02/01/98 05/31/12 $109,200 $9,100 $0.80 $0 $0.00 $109,200 Smart Fit D01-02 3,948 04/01/01 12/31/11 $40,270 $3,356 $0.85 $0 $0.00 $40,270 County of San Bernardino D03-07 8,400 02/01/96 01/31/12 $85,680 $7,140 $0.85 $0 $0.00 $85,680 VACANT (E01-03) E01-03 8,550 $56,430 $4,703 $0.55 $0 $0.00 $56,430 VACANT (E04) E04 2,550 $16,830 $1,403 $0.55 $0 $0.00 $16,830 VACANT (E05) E05 2,800 $18,480 $1,540 $0.55 $0 $0.00 $18,480 VACANT (E06) E06 2,550 $16,830 $1,403 $0.55 $0 $0.00 $16,830 VACANT (E07) E07 2,550 $16,830 $1,403 $0.55 $0 $0.00 $16,830 R & R Electric E08 2,850 08/01/04 07/31/12 $18,810 $1,568 $0.55 $0 $0.00 $18,810 Mojave Copy & Printing E09-10 5,450 04/01/07 03/31/12 $35,970 $2,998 $0.55 $0 $0.00 $35,970 Lifecare Solutions F01-02 4,500 12/01/08 11/30/11 $29,700 $2,475 $0.55 $0 $0.00 $29,700 Management Office F01-02A 1,000 $6,600 $550 $0.55 $0 $0.00 $6,600 Desert Valley Medical Group (F F03 2,720 11/01/06 10/31/11 $17,952 $1,496 $0.55 $0 $0.00 $17,952 Desert Valley Medical Group (F F04 2,550 11/01/06 10/31/11 $16,830 $1,403 $0.55 $0 $0.00 $16,830 FleetPride Inc. F05-06 5,100 07/01/04 12/31/13 $33,660 $2,805 $0.55 $0 $0.00 $33,660 Desert Valley Medical Group (F F07 2,550 03/01/98 03/31/12 $16,830 $1,403 $0.55 $0 $0.00 $16,830 Iglesia Mision Christiana F08-10 8,550 01/01/08 12/31/14 $56,430 $4,703 $0.55 $0 $0.00 $56,430 Bear Valley Rentals G01_05 5,400 11/01/95 06/30/14 $35,640 $2,970 $0.55 $0 $0.00 $35,640 Desert Valley Medical Group (G G02-03 5,700 08/01/97 01/31/12 $37,620 $3,135 $0.55 $0 $0.00 $37,620 VACANT (G04) G04 2,550 $16,830 $1,403 $0.55 $0 $0.00 $16,830 Desert Valley Medical Group (G G06-10 13,650 07/01/94 01/31/12 $90,090 $7,508 $0.55 $0 $0.00 $90,090 128,047 SF Totals $1,060,212 $0 $1,060,212 Rent $1,060,212 Actual Occupancy Recoveries 0 Occupied 97,339 76.0% Total Gross Income $1,060,212 Vacant 30,708 24.0% Total 128,047 100.0% Less General Vacancy (53,011) Effective Gross Income $1,007,201

Total Expenses (342,723) Notes: Net Operating Income 664,478 Assumes 100% occupancy from start of the analysis with every tenant paying market rent and recoveries.

This page is part of a package and is subject to the disclaimer on the Executive Summary. 12/29/2010 11:37 AM CB Richard Ellis Financial Consulting Group 8 26 FINANCIALS | Existing vs. Market Comparison

Percentage Square Lease Lease Existing Rent Market Rent Above/(Below) Suite Tenant at January 1, 2011 Feet Start End as of Jan 1, 2011 as of Jan 1, 2011 Market Rent [1]

Existing Tenants F01-02A Management Office 1,000 A01 American Univ. of Med Tech. 2,418 Aug-10 Jul-13 $0.87 PSF FSG $1.05 PSF FSG -17.29% A02_10 Good Deal Realty 1,433 Feb-07 Jun-11 $1.25 PSF Gross $1.05 PSF FSG 18.70% A03 Strands Hair Co. 1,298 Jul-02 May-13 $0.95 PSF Gross $1.05 PSF FSG -9.52% A04 Desert Valley Hospital 1,242 Jun-09 Feb-11 $1.30 PSF Gross $1.05 PSF FSG 23.81% A05 Advanced Micro Technologies 680 Jun-95 Sep-12 $1.10 PSF FSG $1.05 PSF FSG 5.00% A06 James Hearing Aid Center 1,064 Jun-05 Jul-11 $1.48 PSF Gross $1.05 PSF FSG 40.49% A11 Victoria Staging & ReDesign 311 Mar-08 Jan-11 $0.95 PSF Gross $1.05 PSF FSG -9.66% B01 Glenn P Matney, M.D. 1,650 Aug-98 Sep-13 $1.31 PSF FSG $1.05 PSF Gross 24.86% B06 Roger Moushabek, M.D. 1,750 Nov-97 Dec-11 $0.70 PSF FSG $1.05 PSF Gross -33.33% B07 Omaha Woodman Life Insurance 1,750 Dec-95 Jan-11 $0.97 PSF Gross [2] $1.05 PSF Gross -7.61% C01-07 Desert Valley Medical Group (C 11,375 Feb-98 May-12 $0.97 PSF FSG $0.80 PSF Gross 20.65% D01-02 Smart Fit 3,948 Apr-01 Dec-11 $0.70 PSF Gross $0.85 PSF Gross -17.65% D03-07 County of San Bernardino 8,400 Feb-96 Jan-12 $0.82 PSF Gross $0.85 PSF Gross -3.53% E08 R & R Electric 2,850 Aug-04 Jul-12 $0.48 PSF Gross [2] $0.55 PSF Gross -13.20% E09-10 Mojave Copy & Printing 5,450 Apr-07 Mar-12 $0.93 PSF Gross [2] $0.55 PSF Gross 69.37% F01-02 Lifecare Solutions 4,500 Dec-08 Nov-11 $0.98 PSF Gross [2] $0.55 PSF Gross 78.41% F03 Desert Valley Medical Group (F 2,720 Nov-06 Oct-11 $0.62 PSF Gross $0.55 PSF Gross 12.36% F04 Desert Valley Medical Group (F 2,550 Nov-06 Oct-11 $0.62 PSF Gross $0.55 PSF Gross 12.36% F05-06 FleetPride Inc. 5,100 Jul-04 Dec-13 $0.51 PSF FSG $0.55 PSF Gross -7.27% F07 Desert Valley Medical Group (F 2,550 Mar-98 Mar-12 $0.74 PSF FSG $0.55 PSF Gross 34.84% F08-10 Iglesia Mision Christiana 8,550 Jan-08 Dec-14 $0.57 PSF Gross [2] $0.55 PSF Gross 2.92% G01_05 Bear Valley Rentals 5,400 Nov-95 Jun-14 $0.72 PSF Gross [2] $0.55 PSF Gross 31.40% G02-03 Desert Valley Medical Group (G 5,700 Aug-97 Jan-12 $0.63 PSF FSG $0.55 PSF Gross 14.24% G06-10 Desert Valley Medical Group (G 13,650 Jul-94 Jan-12 $0.64 PSF FSG $0.55 PSF Gross 16.11% Total Existing Square Feet 97,339 $0.78 $0.69 12.63%

[1] The calculation of total "Percentage Above/(Below) Market Rent" only includes existing tenants as noted in this schedule. [2] Actual Rent is NNN, analysis models the equivalent GROSS rent for comparison purposes.

27 This page is part of a package and is subject to the disclaimer on the Executive Summary. 12/29/2010 11:37 AM CB Richard Ellis Financial Consulting Group 11 FOXBOROUGH BUSINESS PARK | Vacant Space Assumptions

Square Lease Initial Coupon Rent Lease Rent Tenant Leasing Suite Tenant Feet Start Market Rent [1] Adjustment Term Abatements Improvements Commissions

Vacant Space A07 VACANT (A07) 805 May-11 $1.05 PSF FSG 3.00% Annually 3 Years 0 Month(s) $5.00 PSF 6.00% A08 VACANT (A08) 829 Jul-11 $1.05 PSF FSG 3.00% Annually 3 Years 0 Month(s) $5.00 PSF 6.00% A09 VACANT (A09) 778 Jul-11 $1.05 PSF FSG 3.00% Annually 3 Years 0 Month(s) $5.00 PSF 6.00% B02-05 VACANT (B02-05) 6,746 Sep-11 $1.05 PSF Gross 3.00% Annually 3 Years 0 Month(s) $15.00 PSF 6.00% E01-03 VACANT (E01-03) 8,550 Dec-11 $0.55 PSF Gross 3.00% Annually 3 Years 0 Month(s) $1.00 PSF 6.00% E04 VACANT (E04) 2,550 Mar-12 $0.55 PSF Gross 3.00% Annually 3 Years 0 Month(s) $1.00 PSF 6.00% E05 VACANT (E05) 2,800 Apr-12 $0.55 PSF Gross 3.00% Annually 3 Years 0 Month(s) $1.00 PSF 6.00% E06 VACANT (E06) 2,550 May-12 $0.55 PSF Gross 3.00% Annually 3 Years 0 Month(s) $1.00 PSF 6.00% E07 VACANT (E07) 2,550 Jun-12 $0.55 PSF Gross 3.00% Annually 3 Years 0 Month(s) $1.00 PSF 6.00% G04 VACANT (G04) 2,550 Jul-12 $0.55 PSF Gross 3.00% Annually 3 Years 0 Month(s) $1.00 PSF 6.00% Total Vacant Space 30,708

[1] Calendar year 2011 value. Actual starting contract rent depends on the year in which vacant lease-up tenant begins.

28 This page is part of a package and is subject to the disclaimer on the Executive Summary. 12/29/2010 11:37 AM CB Richard Ellis Financial Consulting Group 12 FINANCIALS | Lease Expirations

Contract Projected Total Annual Cumulative Rent Mkt. Rent $ % Date Tenant Suites SF (% of SF) [1] (% of SF) [1] At Expiration At Expiration Variance Variance

Jan-11 Victoria Staging & ReDesign A11 311 0.24% $0.95 $1.05 ($0.10) -9.68% Jan-11 Omaha Woodman Life Insurance B07 1,750 1.37% 0.81 1.05 (0.24) -22.86% Feb-11 Desert Valley Hospital A04 1,242 0.97% 1.30 1.05 0.25 23.81% Jun-11 Good Deal Realty A02_10 1,433 1.12% 1.25 1.05 0.20 18.73% Jul-11 James Hearing Aid Center A06 1,064 0.83% 1.48 1.05 0.43 40.48% Oct-11 Desert Valley Medical Group (F F03 2,720 2.12% 0.62 0.55 0.07 12.42% Oct-11 Desert Valley Medical Group (F F04 2,550 1.99% 0.62 0.55 0.07 12.42% Nov-11 Lifecare Solutions F01-02 4,500 3.51% 0.96 0.55 0.41 73.64% Dec-11 Roger Moushabek, M.D. B06 1,750 1.37% 0.70 1.05 (0.35) -33.33% Dec-11 Smart Fit D01-02 3,948 3.08% 0.70 0.85 (0.15) -17.65% CYE 2011 Totals 21,268 16.61% 16.61% $0.86 $0.78 $0.07 9.43%

Jan-12 County of San Bernardino D03-07 8,400 6.56% $0.84 $0.85 ($0.01) -1.08% Jan-12 Desert Valley Medical Group (G G02-03 5,700 4.45% 0.65 0.55 0.10 17.73% Jan-12 Desert Valley Medical Group (G G06-10 13,650 10.66% 0.66 0.55 0.11 19.55% Mar-12 Mojave Copy & Printing E09-10 5,450 4.26% 0.88 0.55 0.33 60.30% Mar-12 Desert Valley Medical Group (F F07 2,550 1.99% 0.76 0.55 0.21 38.94% May-12 Desert Valley Medical Group (C C01-07 11,375 8.88% 0.99 0.80 0.19 24.27% Jul-12 R & R Electric E08 2,850 2.23% 0.49 0.55 (0.06) -10.61% Sep-12 Advanced Micro Technologies A05 680 0.53% 1.16 1.05 0.11 10.24% CYE 2012 Totals 50,655 39.56% 56.17% $0.79 $0.66 $0.13 19.11%

May-13 Strands Hair Co. A03 1,298 1.01% $1.20 [2] $1.08 $0.12 10.96% Jul-13 American Univ. of Med Tech. A01 2,418 1.89% 0.92 1.08 (0.16) -14.78% Sep-13 Glenn P Matney, M.D. B01 1,650 1.29% 1.39 1.08 0.31 28.60% Dec-13 FleetPride Inc. F05-06 5,100 3.98% 0.57 0.57 0.00 0.62% CYE 2013 Totals 10,466 8.17% 64.34% $0.86 $0.83 $0.03 3.40%

Jun-14 Bear Valley Rentals G01_05 5,400 4.22% $0.62 $0.60 $0.02 2.56% Dec-14 Iglesia Mision Christiana F08-10 8,550 6.68% 0.44 0.60 (0.16) -27.42% CYE 2014 Totals 13,950 10.89% 75.24% $0.51 $0.60 ($0.09) -15.82% Subtotal 96,339 75.24% Management Office 1,000 0.78% 76.02% Vacant 30,708 23.98% 100.00% TOTAL 128,047 100.00%

[1] Based on 128,047 total building square feet.

This page is part of a package and is subject to the disclaimer on the Executive Summary. 12/29/2010 11:37 AM CB Richard Ellis Financial Consulting Group 13 FOXBOROUGH BUSINESS PARK | Lease Expirations

[1] Net Rentable Percentage Cumulative Weighted. Average Projected Calendar Number Square Feet Square Feet Square Feet Contract Rent Market Rent $ % Year Ending of Suites Expiring Expiring Expiring At Expiration At Expiration Variance Variance

Currently Vacant 10 30,708 23.98% 2011 10 21,268 16.61% 16.61% $0.86 $0.78 $0.07 9.43% 2012 8 50,655 39.56% 56.17% $0.79 $0.66 $0.13 19.11% 2013 4 10,466 8.17% 64.34% $0.86 $0.83 $0.03 3.40% 2014 2 13,950 10.89% 75.24% $0.51 $0.60 ($0.09) -15.82%

Market Rent At Expiration vs. Weighted Average Contract Rent At Expiration [1]

100.00% $1.00

90.00% $0.90

80.00% $0.80 Foot Foot

g n i

r 70.00% $0.70 i p x E Square Square

t 60.00% $0.60 n e Per Per c

e 50.00% $0.50 P Rent Rent

40.00% $0.40

30.00% $$0.300.30 imum n Minimum 20.00% $0.20

10.00% $0.10

0.00% $0.00 Currently Vacant 2011 2012 2013 2014 % of Building Expiring Proj. Market Rent at Expiration Wtd. Avg. Expiring Contract Rent Sq [1] The years in which no existing tenants expire are not reflected on this graph.

30 This page is part of a package and is subject to the disclaimer on the Executive Summary. 12/29/2010 11:37 AM CB Richard Ellis Financial Consulting Group 14 FINANCIALS | Rent Roll

Market Square % of Lease Term Rental Rates Recovery Tenant Leasing Assumption / Suite Tenant Name Feet Property Begin End Begin Monthly PSF Annually PSF Type Improvements Commissions Market Rent Comments/Options

A01 American Univ. of Med Tech. 2,418 1.89% Aug-2010 Jul-2013 Current $2,100 $0.87 $25,200 $10.42 Base Year (Building - - Market Analysis assumes lease is in place as of 8/10. ASSUMED Aug-2011 $2,162 $0.89 $25,945 $10.73 A) $1.05 FSG (Bldg A) Analysis assumes tenant executes a lease at Aug-2012 $2,229 $0.92 $26,743 $11.06 $2,100 /mo with 3% annual rent increases and a 2011 Base Year for expense reimbursement.

A02_10 Good Deal Realty 1,433 1.12% Feb-2007 Jun-2011 Current $1,786 $1.25 $21,431 $14.96 GROSS - - Market $1.05 FSG (Bldg A)

A03 Strands Hair Co. 1,298 1.01% Jul-2002 May-2013 Current $1,233 $0.95 $14,797 $11.40 GROSS - - Market Right to Terminate effective 11/30/12 with six Jun-2011 $1,428 $1.10 $17,134 $13.20 $1.05 FSG (Bldg A) (6) months notice. Jun-2012 $1,558 $1.20 $18,691 $14.40

A04 Desert Valley Hospital 1,242 0.97% Jun-2009 Feb-2011 Current $1,615 $1.30 $19,375 $15.60 GROSS - - Market $1.05 FSG (Bldg A)

A05 Advanced Micro Technologies 680 0.53% Jun-1995 Sep-2012 Current $750 $1.10 $8,996 $13.23 '95 BY ($31,347 - - - Market Base Year amount is estimated. Oct-2011 $787 $1.16 $9,445 $13.89 Bldg A) $1.05 FSG (Bldg A)

A06 James Hearing Aid Center 1,064 0.83% Jun-2005 Jul-2011 Current $1,570 $1.48 $18,835 $17.70 GROSS - - Market $1.05 FSG (Bldg A)

A07 VACANT (A07) 805 0.63% May-2011 Apr-2014 May-2011 $845 $1.05 $10,143 $12.60 Base Year (Building $5.00 $2.34 Market May-2012 $871 $1.08 $10,449 $12.98 A) $4,025 $1,881 $1.05 FSG (Bldg A) May-2013 $897 $1.11 $10,763 $13.37 6.00%

A08 VACANT (A08) 829 0.65% Jul-2011 Jun-2014 Jul-2011 $870 $1.05 $10,445 $12.60 Base Year (Building $5.00 $2.34 Market Jul-2012 $897 $1.08 $10,760 $12.98 A) $4,145 $1,937 $1.05 FSG (Bldg A) Jul-2013 $924 $1.11 $11,084 $13.37 6.00%

A09 VACANT (A09) 778 0.61% Jul-2011 Jun-2014 Jul-2011 $817 $1.05 $9,803 $12.60 Base Year (Building $5.00 $2.34 Market Jul-2012 $842 $1.08 $10,098 $12.98 A) $3,890 $1,818 $1.05 FSG (Bldg A) Jul-2013 $867 $1.11 $10,402 $13.37 6.00%

A11 Victoria Staging & ReDesign 311 0.24% Mar-2008 Jan-2011 Current $295 $0.95 $3,540 $11.38 GROSS - - Market $1.05 FSG (Bldg A)

B01 Glenn P Matney, M.D. 1,650 1.29% Aug-1998 Sep-2013 Current $2,163 $1.31 $25,959 $15.73 '98 BY ($147,522) - - Market 1st Right of Refusal to lease Suite B2-4 up to Oct-2011 $2,228 $1.35 $26,730 $16.20 $1.05 MG (Bldg B) an additional 4,922 SF but not less than Oct-2012 $2,295 $1.39 $27,539 $16.69 3,500 SF

B02-05 VACANT (B02-05) 6,746 5.27% Sep-2011 Aug-2014 Sep-2011 $7,083 $1.05 $85,000 $12.60 GROSS $15.00 $2.34 Market Sep-2012 $7,297 $1.08 $87,563 $12.98 $101,190 $15,764 $1.05 MG (Bldg B) Sep-2013 $7,516 $1.11 $90,194 $13.37 6.00%

B06 Roger Moushabek, M.D. 1,750 1.37% Nov-1997 Dec-2011 Current $1,225 $0.70 $14,700 $8.40 '01 BY ($166,916) - - Market Lease expired 12/09. Analysis assumes MTM $1.05 MG (Bldg B) Tenant remains in place at current terms for one (1) year after the analysis start.

B07 Omaha Woodman Life Insurance 1,750 1.37% Dec-1995 Jan-2011 Current $1,418 $0.81 $17,011 $9.72 $0.16 /sf/mo FIXED - - Market $1.05 MG (Bldg B)

C01-07 Desert Valley Medical Group (C 11,375 8.88% Feb-1998 May-2012 Current $10,980 $0.97 $131,755 $11.58 '98 BY ($147,522) - - Market Base Year amount is estimated. Jun-2011 $11,309 $0.99 $135,704 $11.93 $0.80 MG (Bldg C)

D01-02 Smart Fit 3,948 3.08% Apr-2001 Dec-2011 Current $2,764 $0.70 $33,163 $8.40 GROSS - - Market Lease expired 12/09. Analysis assumes MTM $0.85 MG (Bldg D) Tenant remains in place at current terms for one (1) year after the analysis start. Base Year amount is estimated.

D03-07 County of San Bernardino 8,400 6.56% Feb-1996 Jan-2012 Current $6,888 $0.82 $82,656 $9.84 GROSS - - Market Right to Terminate with 90 days notice. Feb-2011 $7,063 $0.84 $84,756 $10.09 $0.85 MG (Bldg D)

This page is part of a package and is subject to the disclaimer on the Executive Summary. 12/29/2010 11:37 AM CB Richard Ellis Financial Consulting Group 15 FOXBOROUGH BUSINESS PARK | Rent Roll

E01-03 VACANT (E01-03) 8,550 6.68% Dec-2011 Nov-2014 Dec-2011 $4,703 $0.55 $56,430 $6.60 GROSS $1.00 $1.22 Market Dec-2012 $4,845 $0.57 $58,140 $6.80 $8,550 $10,465 $0.55 MG (Bldg E,F,G) Dec-2013 $4,988 $0.58 $59,850 $7.00 6.00%

E04 VACANT (E04) 2,550 1.99% Mar-2012 Feb-2015 Mar-2012 $1,403 $0.55 $16,830 $6.60 GROSS $1.00 $1.22 Market Mar-2013 $1,445 $0.57 $17,340 $6.80 $2,550 $3,121 $0.55 MG (Bldg E,F,G) Mar-2014 $1,488 $0.58 $17,850 $7.00 6.00%

E05 VACANT (E05) 2,800 2.19% Apr-2012 Mar-2015 Apr-2012 $1,540 $0.55 $18,480 $6.60 GROSS $1.00 $1.22 Market Apr-2013 $1,587 $0.57 $19,040 $6.80 $2,800 $3,427 $0.55 MG (Bldg E,F,G) Apr-2014 $1,633 $0.58 $19,600 $7.00 6.00%

E06 VACANT (E06) 2,550 1.99% May-2012 Apr-2015 May-2012 $1,403 $0.55 $16,830 $6.60 GROSS $1.00 $1.22 Market May-2013 $1,445 $0.57 $17,340 $6.80 $2,550 $3,121 $0.55 MG (Bldg E,F,G) May-2014 $1,488 $0.58 $17,850 $7.00 6.00%

E07 VACANT (E07) 2,550 1.99% Jun-2012 May-2015 Jun-2012 $1,403 $0.55 $16,830 $6.60 GROSS $1.00 $1.22 Market Jun-2013 $1,445 $0.57 $17,340 $6.80 $2,550 $3,121 $0.55 MG (Bldg E,F,G) Jun-2014 $1,488 $0.58 $17,850 $7.00 6.00%

E08 R & R Electric 2,850 2.23% Aug-2004 Jul-2012 Current $1,361 $0.48 $16,327 $5.73 NNN - - Market Aug-2011 $1,401 $0.49 $16,815 $5.90 $0.55 MG (Bldg E,F,G)

E09-10 Mojave Copy & Printing 5,450 4.26% Apr-2007 Mar-2012 Current $4,578 $0.84 $54,936 $10.08 NNN - - Market Apr-2011 $4,805 $0.88 $57,661 $10.58 $0.55 MG (Bldg E,F,G)

F01-02 Lifecare Solutions 4,500 3.51% Dec-2008 Nov-2011 Current $4,297 $0.95 $51,560 $11.46 NNN - - Market $0.55 MG (Bldg E,F,G)

F01-02A Management Office 1,000 0.78% Jan-2011 Dec-2035 Current $0 $0.00 $0 $0.00 GROSS - - Market Analysis assumes suite is non-revenue Non-Revenue $0.55 MG (Bldg E,F,G) generating for the duration of the analysis.

F03 Desert Valley Medical Group (F 2,720 2.12% Nov-2006 Oct-2011 Current $1,681 $0.62 $20,172 $7.42 GROSS - - Market $0.55 MG (Bldg E,F,G)

F04 Desert Valley Medical Group (F 2,550 1.99% Nov-2006 Oct-2011 Current $1,576 $0.62 $18,911 $7.42 GROSS - - Market Right to Terminate effective 4/30/11 with 90 $0.55 MG (Bldg E,F,G) days notice.

F05-06 FleetPride Inc. 5,100 3.98% Jul-2004 Dec-2013 Current $2,601 $0.51 $31,212 $6.12 '98 BY ($147,522) - - Market Two (2) three (3) year options at FMV. Jan-2012 $2,703 $0.53 $32,436 $6.36 $0.55 MG (Bldg E,F,G) Jan-2013 $2,907 $0.57 $34,884 $6.84

F07 Desert Valley Medical Group (F 2,550 1.99% Mar-1998 Mar-2012 Current $1,891 $0.74 $22,693 $8.90 '98 BY ($147,522) - - Market Apr-2011 $1,949 $0.76 $23,384 $9.17 $0.55 MG (Bldg E,F,G)

F08-10 Iglesia Mision Christiana 8,550 6.68% Jan-2008 Dec-2014 Current $3,728 $0.44 $44,742 $5.23 NNN (Capped - - Market CAM is capped at $0.13 /sf/mo through $0.13 /sf/mo) $0.55 MG (Bldg E,F,G) 12/11, thereafter cap shall increase 5% annually.

G01_05 Bear Valley Rentals 5,400 4.22% Nov-1995 Jun-2014 Current $2,985 $0.55 $35,816 $6.63 NNN (Capped - - Market CAM is capped at $0.17 /sf/mo, flat for the Jul-2011 $3,132 $0.58 $37,584 $6.96 $0.17 /sf/mo) $0.55 MG (Bldg E,F,G) term. Beginning 7/12, tenant pays annual CPI Jul-2012 $3,227 $0.60 $38,718 $7.17 rent increases, Min 3%, Max 5%, Modeled 3%. Jul-2013 $3,326 $0.62 $39,906 $7.39

G02-03 Desert Valley Medical Group (G 5,700 4.45% Aug-1997 Jan-2012 Current $3,581 $0.63 $42,976 $7.54 '97 BY ($100,725) - - Market Feb-2011 $3,691 $0.65 $44,289 $7.77 $0.55 MG (Bldg E,F,G)

G04 VACANT (G04) 2,550 1.99% Jul-2012 Jun-2015 Jul-2012 $1,403 $0.55 $16,830 $6.60 GROSS $1.00 $1.22 Market Jul-2013 $1,445 $0.57 $17,340 $6.80 $2,550 $3,121 $0.55 MG (Bldg E,F,G) Jul-2014 $1,488 $0.58 $17,850 $7.00 6.00%

G06-10 Desert Valley Medical Group (G 13,650 10.66% Jul-1994 Jan-2012 Current $8,717 $0.64 $104,603 $7.66 '94 BY ($98,000) - - Market Feb-2011 $8,975 $0.66 $107,699 $7.89 $0.55 MG (Bldg E,F,G)

TOTALS / AVERAGES 128,047 $71,780 $0.74 $861,365 $8.85

OCCUPIED SqFt 97,339 76.0% VACANT SqFt 30,708 24.0% TOTAL SqFt 128,047 100.0%

This page is part of a package and is subject to the disclaimer on the Executive Summary. 12/29/2010 11:37 AM CB Richard Ellis Financial Consulting Group 16 NNN

FINANCIALS | Replacement Cost

Land Size 346,302 Square Feet Building Size 128,047 Square Feet

HARD COSTS

Land Acquisition Cost @ $ 5.00 $ 1,731,510 Hard Costs @ $ 60.00 $ 7,682,820 Tenant Improvements @ $45 PSF on 46,532 $ 2,093,940 TOTAL HARD COSTS $ 11,508,270 71%

SOFT COSTS

A & E @ 2.0% $ 230,165 Insurance $0.37 PSF 47,377 Property Taxes 1.10% Hard Costs 126,591 Development Fees $8.50 PSF of Bldg. Area 1,088,400 Legal 1% Hard Costs 115,083 Developer's Profit 10% Hard Costs 1,150,827 Loan Fee 1% Hard Costs 115,083 Contingency 5% Hard Costs 575,414 Interest on Land Carry 3% Hard Costs 51,945 Interest on Construction 5% Hard Costs 575,414 Interest on Lease Up 3% Hard Costs 345,248 Leasing Commission $ 1.30 PSF 165,949 TOTAL SOFT COSTS $ 4,587,495 29%

Total Development Costs $ 16,095,765 100%

Cost Per Square Foot $ 125.70

N:\Shared\SUPPORT\Private Client\TEMPLATES\_PCGNB Folder Template\01-RFP and Offering Memorandum\8 - Replacement Cost Analysis\Victorville Replacement Cost 11-6-10 33

CONFIDENTIALITY AGREEMENT

This is a confidential Memorandum intended solely this Memorandum or use of its contents; and you are In this Memorandum, certain documents, including for your limited use and benefit in determining to rely solely on your investigations and inspections leases and other materials, are described in whether you desire to express further interest in the of the Property in evaluating a possible purchase of summary form. These summaries do not purport to acquisition of the (“Property”). the real property. be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties This Memorandum contains selected information The Owner expressly reserves the right, at its are expected to review all such summaries and pertaining to the Property and does not purport to be sole discretion, to reject any or all expressions of other documents of whatever nature independently a representation of the state of affairs of the Owner interest or offers to purchase the Property, and/ and not rely on the contents of this Memorandum in or the Property, to be all-inclusive or to contain all or or to terminate discussions with any entity at any any manner. part of the information which prospective investors time with or without notice which may arise as a may require to evaluate a purchase of real property. result of review of this Memorandum. The Owner If after reviewing this Memorandum, you have no All financial projections and information are shall have no legal commitment or obligation to further interest in purchasing the Property, kindly provided for general reference purposes only and any entity reviewing this Memorandum or making return this Memorandum to CB Richard Ellis. are based on assumptions relating to the general an offer to purchase the Property unless and © 2010 CB Richard Ellis, Inc. We obtained the information economy, market conditions, competition and other until written agreement(s) for the purchase of the contained in this offering from sources we believe to be factors beyond the control of the Owner and CB Property have been fully executed, delivered and reliable. However, we have not verified its accuracy and Richard Ellis. Therefore, all projections, assumptions approved by the Owner and any conditions to the make no guarantee, warranty or representation about it. It and other information provided and made herein Owner’s obligations therein have been satisfied is submitted subject to the possibility of errors, omissions, are subject to material variation. All references to or waived. change of price, rental or other conditions, prior sale, acreages, square footages, and other measurements lease or financing, or withdrawal without notice. We By receipt of this Memorandum, you agree that this are approximations. Additional information and an include projections, opinions, assumptions or estimates Memorandum and its contents are of a confidential opportunity to inspect the Property will be made for example only, and they may not represent current or nature, that you will hold and treat it in the strictest available to interested and qualified prospective future performance of the property. You and your tax and confidence and that you will not disclose this purchasers. Neither the Owner or CB Richard legal advisors should conduct your own investigation of Memorandum or any of its contents to any other Ellis, nor any of their respective directors, officers, the Property and transaction. entity without the prior written authorization of the affiliates or representatives are any representation Owner or CB Richard Ellis. You also agree that you or warranty, expressed or implied, as to the will not use this Memorandum or any of its contents accuracy or completeness of this Memorandum or in any manner detrimental to the interest of the any of its contents, and no legal commitment or Owner or CB Richard Ellis. obligation shall arise by reason of your receipt of

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