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Bloomingdale Hills Riverview, Florida

James D. Hudgins, Founder v. 678.722.2001 Integrity Experience Results [email protected] www.stoneridgecapital.com Bloomingdale Hills Riverview, Florida

Executive SummarySummary Property Overview Tenant Information Financial Analysis Market Summary Offering Terms & Conditions

Introduction Stone Ridge Capital is pleased to present the opportunity to acquire Bloomingdale Hills, a newly developed 78,686 square foot grocery-anchored shopping center (99% occupied) located in Riverview, (Tampa) Florida. Built in 2002, Bloomingdale Hills features a solid tenant base and is anchored by (61,286 SF), St. Joseph Children’s Hospital of Tampa (6,000 SF) and an outstanding line-up quality retail shops. The shopping center is further enhanced by a superior line-up of national outparcel tenants including Hollywood Video, McDonald’s, Wendy’s, Subway and Amscot Financial. Other retailers in the immediate area include , Super Target, Wal-Mart, Home Depot, and Walgreen’s. This strategically positioned neighborhood center sits at the intersection of West Bloomingdale Avenue and Providence Road, just minutes from the newly expanded Westfield Brandon, formerly known as Brandon Town Center Mall. Riverview, Florida is a high growth community located in Hillsborough County and conveniently situated along the I-75 & US Highway 301 corridor, just about 15 minutes from downtown Tampa and 45 minutes from the beautiful beaches of Bradenton, Florida.

NOI (2007): $460,964

Center Size: 78,686 sq. ft.

Occupancy: 99%

Anchor: 61,286 sq. ft.

Shop Space: 17,400 sq. ft.

Year Built: 2002

Major Tenants: Albertsons St. Joseph’s Children’s Hospital

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Investment Highlights

Albertsons – opened this new state-of-the-art grocery store in April 2002 and leases 61,286 square feet within the shopping center. Albertsons built their own building and leased the building pad for a period of 25 years (4/08/2002 — 4/27/2027). Their current base rent is $3.34 psf with scheduled increases of 5% for each of their 8 option periods. This premier store is one of 95 Albertsons operating in the State of Florida.

St. Joseph Children’s Hospital opened a 6,000 square foot facility in October 2002. Their initial lease term was 5 years. St. Joe recently exercised their 1st renewal option through September 30, 2010. Their base rent will increase to $21.56 per square foot as of October 1, 2007.

National Outparcel Tenants – Bloomingdale Hills is further enhanced by an outstanding line-up of national outparcel tenants including Hollywood Video, 7-11, McDonald’s, Wendy’s, Subway & Amscot Financial (not included in this offering).

Debt Free – The shopping center is not encumbered by an existing commercial mortgage.

High Growth Area – Riverview, Florida is a very high growth area of Hillsborough County. The population within 1 mile is projected to grow approximately 37% over the next five years.

Traffic Counts – The daily traffic along West Bloomingdale Avenue currently exceeds 40,000+ trips per day.

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Offering Summary

Bloomingdale Hills 10863 West Bloomingdale Avenue Riverview, Florida 33569-3616

Major Tenants Albertsons - 61,286 SF St. Joseph Hospital – 6,000 SF

Year Built 2002

Building Size 78,686 SF

Site Size 9 (+-)acres

Location Strategically located off I-75 – US Highway 301 at the intersection of W. Bloomingdale Ave & Providence Road

Occupancy 99%

Income & Expense 2007 Anchor Base Rent: $204,695 Shop Base Rent: $355,543 Recoveries: $161,926 Gross Income: $722,164 Vacancy Factor: $25,873 Effective Gross Income: $696,291 Expenses: $235,327 Stabilized NOI: $460,964

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Financial Highlights Bloomingdale Hills is being offered without an asking price and is not encumbered by an existing commercial mortgage. 64% of the base rent is derived from the long term credit anchor tenants (Albertsons & St. Joseph Children’s Hospital) offering the investor strong annual cash flow. The shop tenants within shopping center are paying an average rental rate of $20.43 per square foot, well within the rental rate range for comparable shop space in competing centers throughout the sub- market.

Conclusion Bloomingdale Hills Shopping Center has prospered since its development in 2002. The national, regional and local tenant mix is solid thus resulting in a property which has experienced a very successful tenant occupancy history. This strategically positioned neighborhood grocery anchored center sits at the intersection of West Bloomingdale Avenue and Providence Road, just minutes from the newly expanded Westfield Brandon, formerly known as Brandon Town Center Mall. Riverview, Florida is a high growth community located in Hillsborough County and conveniently situated along the I-75 & US Highway 301 corridor, just about 15 minutes from downtown Tampa. The center sits in the middle of a well established, highly visible and dominant retail trade area (Wal- Mart, Super Target, Home Depot, Publix and Walgreens). The location features strong daily traffic counts, healthy demographics and excellent accessibility. With its superb historical tenant occupancy and strong anchor tenant credit (Albertsons), this center will likely be considered the area’s dominant community shopping center well into the future.

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Location Map

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Property Photos

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Property Highlights

Location: Riverview, Florida is one of Tampa Bay’s most explosive suburban growth areas. It is conveniently located along the I-75 & US Highway 301 corridor 15 minutes from Tampa, 45 minutes from the beautiful beaches of Bradenton, Florida, one hour from Walt Disney World, and two and a half hours from Kennedy Space Center and the east coast of Florida.

Retail Growth: Big Box national retailers continue to open new locations along the explosive West Bloomingdale Avenue. Retailers that have recently opened in Riverview along West Bloomingdale Avenue include Home Depot, Super Target (Oct. 2007), Walgreen’s, Publix, & Sweet Bay Markets. Less than 2 miles away is the newly expanded Westfield Brandon, formerly known as Brandon Town Center Mall, which features a tremendous retail and residential base.

Demographics & Economy: Riverview continues to have steady growth in both population and work force. The estimated population growth within one mile of the Bloomingdale Hills is 37% over the next 5 years. Housing development is growing at a staggering rate annually with Hillsborough County continuing to set records for housing & multi-family permits. Unemployment is below the state level and has the county’s largest employment growth sector. The predominant employment sectors for this area are services and retail trade.

Radius Population Households Average Growth 2005-2010 HH Income 1 Mile 8,709 3,449 $63,677 37.00% 3 Miles 70,211 27,158 $65,680 25.30% 10 Miles 155,854 57,379 $67,342 16.48%

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Close-up Aerial Photo

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Market Aerial Photo

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Site Plan

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Tenant Summary The two largest shop tenants at Bloomingdale Hills Shopping Center are St. Joseph Children’s Hospital occupying 6,000 square feet and DHM Dental Group occupying 2,400 square feet. There is currently only one vacancy within center containing 900 square feet. Great Clips has a lease expiration of August 31, 2007 but they are scheduled to exercise the first 5 year option contained in their lease. The shopping center shop tenants are paying an average rent of $20.43 psf.

Tenant Size (SF) Lease Expiration Rent (PSF) Albertsons 61,286 April 7, 2027 $3.34 DHM Dental Group 2,400 July 31,2014 $18.00 Cutie Beauty Salon 1,200 April 30, 2008 $16.88 Pizza (Grotheer) 1,200 Feb. 29, 2011 $24.96 New Tenant 900 TBD $22.00 Dollar Party 1,500 April 30, 2010 $20.05 Great Clips* 1,200 Aug. 31, 2007 $20.20 Shanghai Chinese 1,000 Sept. 30, 2012 $19.66 Sun Nails & Spa 1,000 Aug. 31, 2008 $17.75 Signature Cleaners 1,000 Aug. 31, 2008 $20.71 St. Joe Children’s 6,000 Sept. 30, 2010 $21.56 Total 78,686 $20.43 (AVG) * Pending lease renewal.

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Company History Albertsons was founded by Joe Albertson in 1939 in Boise, Idaho. Albertsons, Inc. is the second largest operator of grocery stores in the United States, trailing only the Co., although in overall food retailing it also trails Wal-Mart Stores, Inc., the leader in that category. Following the April 2004 $2.47 billion acquisition of the Shaw’s and Star Markets chains, Albertsons operated more than 2,500 stores in 37 states, mainly in the West, Southwest, Midwest, Mid-Atlantic, and New England. The units include about 1,350 combination food-and-drug stores as well as around 420 conventional (under the Albertsons, , Food Stores, Shaw’s, and Star Markets names); about two dozen warehouse stores (Max Foods and Super Saver Foods); and more than 700 stand-alone drugstores (Osco Drugs and Sav-on Drugs). Among the combination stores were a number of outlets operating under dual banners: Albertsons Osco, Albertsons Sav-on, and Jewel-Osco. More than 230 of the company’s stores include onsite gasoline stations. Albertsons had small-town beginnings but had evolved by the early 2000s into a suburban-oriented operation; despite its expansion into a coast- to-coast operator, it also remained a predominantly western chain, with more than half of its stores located in that U.S. region. The company’s history turns on the expansion of the one-stop shopping concept upon which it was founded, which led to the growth of larger stores carrying more diverse products and eventually to the jumbo food-and-drug stores that were the key to Albertsons tremendous success. Key numbers for fiscal year ending January, 2006: Sale: $40,358.0M Net income: $446.0M Stores: 2,481 Sale to Supervalu, CVS & Cerberus Capital Management On January 23, 2006, Supervalu, CVS Pharmacy, and an investment group led by Cerberus Capital Management announced they had agreed to acquire Albertsons for $17.4 billion in cash, stock and debt assumption. www.albertsons.com As of June 2, 2006, the company’s retail stores have been divided as follows: SUPERVALU and CVS acquired 1,826 of company’s and drugstore assets, leaving about 655 stores for Cerberus Capital Management (which operate under the Albertsons, Super

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Saver, and Grocery Warehouse banners). Subsequent sales (most notably 132 stores in Northern California) have further reduced the Cerberus Capital Management owned stores to less than 400 supermarkets. Supervalu (New Albertsons, Inc.) Supervalu has acquired 1124 stores in the deal, including: • Acme (134 locations) • Acme Express, Jewel Express, and Albertsons Express (107 fuel centers) • Albertsons (564 locations in Southern California, Idaho, Montana, Nevada, North Dakota, Oregon, Utah, Washington and Wyoming), - New Albertsons Inc. • (11 locations) • Jewel and Jewel-Osco (198 locations) • Lazy Acres (1 location) • Max Foods (4 locations) (3 converted into Lucky, 1 closed in July 2006) • Osco Pharmacy and Sav-on Pharmacy (906 pharmacies) • Save-A-Lot (2 stores franchised by Shaw’s) • Shaw’s (188 locations) • (20 locations) • Distribution centers (11 centers)

CVS CVS has acquired all (approximately 702) of the stand-alone Osco Drug and Sav-on Drugs re- branding them all as CVS Pharmacy, though they are closing approximately 100 of the acquired stores. Many CVS locations are close to Sav-On stores.

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Cerberus Capital Management Cerberus Capital Management (Albertsons LLC) www.albertsonsmarket.com acquired 655 stores as part of the January 23, 2006 acquisition deal with Supervalu. The stores operate under the Albertsons, Super Saver, and Grocery Warehouse banners. Cerberus reduced the chain by 132 stores (most of them stores located Northern California) bringing the current chain to 362 supermarkets. Albertsons LLC is composed of four operating divisions which encompasses 362 stores, 5 distribution centers and 43,000 associates. Dallas/Fort Worth 141 Stores Florida 95 Stores Rocky Mountain 46 Stores Southwest 30 Stores Distribution Centers 5 The Cerberus-led group (now named Albertsons LLC) originally acquired: • Albertsons (655 locations in Arizona, Northern California, Colorado, Florida, Louisiana, Oklahoma and Texas) • County Line Liquors (1 location) • Grocery Warehouse (1 location) • Jewel-Osco (2 locations) • Max Foods (2 locations) • Super Saver Foods (23 locations, 21 closed in late 2006) The agreement also included terms for dividing up distribution centers and other real estate and support operations, as well as the sale of 26 Chicago-area from Supervalu to the Cerberus-led investor group. Since Cerberus has taken control of the Cub Foods locations, Cerberus has closed four locations and announced plans to close and sell the remainder to other operators. Supervalu has publicly stated that Albertsons will continue to have a presence in Boise, Idaho, for a three-year period from the date of acquisition, but has not stated which functions will remain permanently in Boise, Idaho, or transitioned to Eden Prairie, Minnesota.

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Albertsons, Inc., is no longer a separate publicly traded company and has been removed from the NYSE. Albertsons will only exist as a nameplate for the grocery stores acquired by Supervalu and Cerberus. New Albertsons, Inc., has become the successor company to Albertsons according to SEC filings. Albertsons LLC was also formed as part of the reorga- nization of assets and liabilities and will eventually be led by the Cerberus group.

NOTE: Cerberus Capital Management recently announced plans to acquire Chrysler for 7.4 billion.

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Major Tenant Lease Profile (Albertsons) Ground Lease Location: Bloomingdale Hills, Riverview Florida Tenant: Albertsons, Inc. Lease Date: July 10, 2001 Commencement: April 8, 2002 Lease Expiration: April 27, 2027 Lease Provisions RCD: Interim Term-Date of Ground Lease/Primary Term-Earlier of (i) the first day after the date Tenant opens for business, and (ii) 180 days after the Pad Certification Date (as defined in the Development Agreement attached as Exhibit B to the Ground Lease). DOP: Date of the Ground Lease (commencement of the Interim Term). Security Deposit: None.

Rental Obligations: Years Annual Rent 1-25 $205,000.00 26-30(option) $215,250.00 31-35(option) $226,012.00 36-40(option) $237,313.13 41-45(option) $249,178.66 46-50(option) $261,637.59 51-55(option) $274,719.47 56-60(option) $287,721.00 61-65(option) $302,107.00

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Operating Expenses/Insurance/Taxes CAM: Tenant shall pay its proportionate share of the total CAM set forth in the CAM Budget approved by Tenant in accordance with Section 12.5 of the Ground Lease. Tenant shall not be obligated to pay CAM charges exceeding the single item cap of $1,500.00 or the aggregate cap of $5,000.00; provided, however expenditures for which Tenant has given its prior written approval shall not be subject to the cap. Insurance: Tenant shall reimburse Landlord for its proportionate share of Landlord’s insurance related to Tenant’s service facilities. Taxes: Tenant shall pay the prorated amount of taxes attributable to the Premises from the Rent Commencement Date to and including the date of expiration or termination of the Ground Lease. Option to Renew: 8 consecutive periods of 5 years on the same terms and conditions as the primary term with at least 180 days written notice before the end of the current term. Sales Reporting/Financial None. Statements: Insurance Requirements: Tenant and Landlord to carry Commercial General Liability with broad form coverage endorsement. The limits of liability shall be i) not less than Two Million Dollars for personal injury, bodily injury, or death of any one person or more than one person and Five Hundred Thousand Dollars with respect to property damage, or ii) a combined single limit of not less than Two Million Dollars. Common Areas: Landlord shall maintain the common areas in good repair at all times. Tenant may at any time elect to assume Landlord’s maintenance obligation to maintain, repair and replace, at its sole cost, the portion of the Common Area within the Premises. Audit Right: Tenant may upon 10 days notice to Landlord, inspect Landlord’s records for CAM incurred during the previous 3 calendar years within 3 years after the end of such calendar year. Utilities: Tenant agrees to pay all charges for electricity, gas, heat, water sewer, telephone, trash disposal and other utility services used in Tenant’s building or service facilities. Signage Rights: Tenant’s standard signs and logos shall not require approval. Assigning and Tenant may assign the Ground Lease or sublet any part of the Ground Lease. Any assignment shall be subject to the Subletting: ECR and the Development Agreement and Tenant shall not be released of any of its obligations.

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Default: A party shall be in default upon the expiration of 30 days (10 days in the event of failure to pay money) from receipt of written notice from the other party specifying such default provided that such party has failed to cure the default prior to the expiration of such 30 day/10 day period (except if such default failure cannot be rectified within the 30 day period using good faith). Tenant may set-off the cost of performing any of Landlord’s obligations against rent due in the event of a Landlord default. If the default is material, Tenant may also terminate the Ground Lease. Development Landlord and Tenant shall each perform their obligations under the Development Agreement and any default Agreement: thereunder shall constitute a default under the Ground Lease provided that written notice is delivered to defaulting party stating that such is a default under the Ground Lease. Mortgage: Tenant or any assignee may place a mortgage/deed of trust on any improvements constructed on the Premises and on Tenant’s interest in the Premises provided such mortgage shall not encumber Landlord’s title, shall not be for any greater term than the term of the Ground Lease, and shall be released upon termination of the Ground Lease. Other Termination In the event any applicable governmental law, rule, or regulation precludes the ordinary and usual operation of Rights: Tenant’s business and if Landlord does not cure this condition to Tenant’s satisfaction within 90 days after receipt of written notice from Tenant, Tenant may terminate the Ground Lease by written notice to Landlord. In the event of a taking by eminent domain of, or damage to, any portion of, interest in or access to the Premises, Tenant’s Building or the Center, or any easements or appurtenances thereto, Tenant my terminate the Ground Lease within 6 months thereof. In the event Tenant’s Building is destroyed due to casualty and within 1 year thereafter, Tenant has not commenced reconstruction, Landlord may terminate the Ground Lease upon 60 days advance notice and payment of a termination fee to Tenant. In the event (i) Tenant ceases business for a continuous period of 1 year for any reason other than (a) labor diffi- culties, acts of God, and other reasons beyond Tenant’s control, (b) the initial construction of Tenant’s building or the Common Area improvements, or (c) temporary closure due to restoration, construction, expansion and other alterations to Tenant’s Building or Common Area improvements, or (ii) Tenant provides Landlord written notice of its intent to permanently cease business, Landlord shall have the one time right to terminate the Ground Lease upon written notice to Tenant and payment of the greater of the Fair Market Value or Book Value of Tenant’s Building, improvements and alterations to the Premises.

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Income & Expense Statement

GROSS SCHEDULED INCOME: 2007 BUDGET Anchor (Albertsons) $204,695

Shops Base Rent: 355,543 TOTAL SCHEDULED RENT: 560,238

RECOVERIES: Common Area Maintenance: 112,036 Insurance: Included in CAM Real Estate Taxes: 44,250 Outlot CAM Reimbursement: 5,640 TOTAL RECOVERIES 161,926

VACANCY FACTOR 5% 25,873

EFFECTIVE GROSS INCOME: 696,291

EXPENSES: Common Area Maintenance 153,141 Estimated 2007 Taxes 43,402 Insurance Included in CAM Property Management at 4% 30,915 Reserves for Structural & Repair ($0.10/SF): 7,869 TOTAL EXPENSES 235,327

NET OPERATING INCOME (NOI): $460,964

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Property Expenses - 2007 Property Budget Item 2007 Cost Comments Management Fees 30,850 4.44% of Effective Gross Income Payroll & Benefits 13,377 Repairs & Maintenance 18,078 Professional Fees 0 Cleaning 13,659 Landscaping 20,220 Snow & Salt 0 Property Operations 1,140 Supplies 0 Waste Removal 15,488 Utilities 38,400 Fire Prevention 4,697 Security 0 Energy Management Systems 0 Maintenance Services (Onsite) 0 Fire Protection - Site 0 Electricity - Site 0 Stormwater/Sewer Assessments 0 Repairs to Canopy / Roof 0 Non-reimbursable Expenses 12,200 Management Fees -30,850 Management fees included on Income & Expense Statement Total Common Area Maintenance 137,259 Property: 15,882 Liability: 0 Total Insurance: 15,882 Total CAM Expenses: 153,141 Property Taxes 43,402 Total Property Taxes: 43,402 Parcel 1 Shop Space Taxes Only Albertsons 85,441 Parcel 2 Albertsons Taxes Only (not included)

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Common Area & Real Estate Tax Recovery Schedule - 2007

Tenant Square CAM CAM RET RET Water Water TOTAL TOTAL Trade Name Feet $PSF Annual $PSF Annual $PSF Annual Recovery $PSF Albertsons 61,286 $0.82 50,205 $0.00 0 0.00 0 $50,205 $0.82 DHM, Inc. 2,400 $3.50 8,400 $2.74 6,586 0.00 0 $14,986 $6.24 Cutie Beauty Salon 1,200 $3.50 4,200 $2.49 2,993 0.30 360 $7,553 $6.29 Mark Grotheer (Pizza) 1,200 $2.50 3,000 $2.49 2,993 0.00 0 $5,993 $4.99 NEW TENANT 900 $3.50 3,150 $2.49 2,245 0.40 360 $5,755 $6.39 Dollar Party 1,500 $2.24 3,360 $2.49 3,741 0.00 0 $7,101 $4.73 Great Clips 1,200 $3.50 4,200 $2.49 2,993 0.30 360 $7,553 $6.29 Shanghai Chinese Restaurant 1,000 $3.50 3,500 $2.74 2,744 0.60 600 $6,844 $6.84 Sun Nail & Spa 1,000 $3.50 3,500 $2.49 2,494 0.36 360 $6,354 $6.35 Signature Cleaners 1,000 $3.50 3,500 $2.49 2,494 0.18 180 $6,174 $6.17 Tampa Children's Hospital 6,000 $3.50 21,000 $2.49 14,966 0.30 1,800 $37,766 $6.29 Monthly Total: 78,686 $108,015 $44,250 $4,020 $156,285

*Albertsons pays for Real Estate Taxes and water separately

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CAM Pools - 2007 Budget

Expense Category Pool 1 Pool 2 Pool 3 Pool 4 Payroll & Benefits 13,377 13,377 13,377 13,377 Repairs & Maintenance 18,078 18,078 2,510 2,510 Professional Fees 0 0 5,798 5,798 Cleaning 13,659 13,659 0 0 Pool # Tenants Notes Landscaping 20,220 20,220 20,220 20,220 1 DHM, Inc. Pool 1 = CAM + Insur = $3.50 psf fixed. Snow & Salt 0 0 0 0 Cutie Beauty New Tenant Property Operations 1,140 1,140 0 0 Great Clips Shanghai Chinese Supplies 0 0 0 0 Sun Nail & Spa Waste Removal 15,488 15,488 0 0 Signature Cleaners Tampa Children’s Utilities 38,400 38,400 38,400 38,400 2 Mark Grotheer Pool 2 = CAM + Insur = $2.50 psf fixed. Fire Prevention 4,697 4,697 4,697 4,697 3 Albertsons Pool 3 = CAM capped at $50,205.83, Security 0 0 0 0 No Administrative Fee Energy Management Systems 0 0 0 0 Maintenance Services (Onsite) 0 0 0 0 4 Dollar Party Pool 4 = CAM + Insur = $2.24 psf fixed. Fire Protection - Site 0 0 0 0 Electricity - Site 0 0 0 0 Stormwater/Sewer Assessments 0 0 0 0 Liability Insurance: 0 0 0 0 Property Insurance: 15,882 15,882 15,882 15,882 Management Fees: 30,850 30,850 0 0 Administrative Fee: 25,769 25,769 0 0 Less Anchor Contribution -5,237 -55,442 -5,237 -55,442 Total Operating Expenses: 192,323 142,118 95,647 45,442 $3.50 $2.50 $0.82 $2.24 Fixed Fixed Capped Fixed

Shop Space Taxes + Admin PSF: $2.74 Shop Space Taxes W/out Admin PSF: $2.49 Albertsons Taxes Paid Separately: $85,441

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Rent Roll

Space Tenant Square % Of Rent Annual % Of CAM Annual Annual Annual Base Term % Rent Base Term Renewal # Type Feet Total Per SF Rent Total Tenant Pool CAM Taxes Insurance Begins Ends (Break Pt.) Rent Change Options Status 1 Anchor 61,286 77.89% $3.34 $204,695 36.57% Albertsons 3 $50,206 SEE NOTE SEE NOTE Apr-02 Apr-27 None N/A Option 1 - 8 Executed Lease CAP 5% Increase each year 2 Local 2,400 3.05% $18.00 $43,200 7.72% DHM, Inc. 1 $8,400 $6,585 Included Feb-04 Jul-14 None N/A None Executed lease in CAM 3 Local 1,200 1.53% $16.88 $20,256 3.62% Cutie Beauty Salon 1 $4,560 $2,993 Included Sep-02 Sep-08 None $17.38/SF 10/01/07 None Executed lease in CAM 4 Local 1,200 1.53% $24.96 $29,952 5.35% Mark Grotheer (Pizza) 2 $3,000 $2,993 Included Dec-06 Feb-11 None $25.95/SF 03/01/08 Option 1 Executed lease in CAM $26.99/SF 03/01/09 $28.07/SF 03/01/10 5 Local 900 1.14% $22.00 $19,800 3.54% NEW TENANT 1 $3,510 $2,245 Included May-07 Apr-10 None N/A None Proposed Tenant in CAM 6 Local 1,500 1.91% $20.05 $30,075 5.37% Dollar Party 4 $3,360 $3,742 Included Apr-04 Apr-10 None $20.65/SF 05/01/08 None Executed Lease in CAM $21.27/SF 05/01/09 7 Local 1,200 1.53% $20.20 $24,240 4.33% Great Clips 1 $4,560 $2,993 Included Aug-02 Aug-08 None $20.00/SF 09/01/07 Option 2 - 6 Executed Lease in CAM $21.00 $22.00 $23.00 $24.00 $25.00 8 Local 1,000 1.27% $19.66 $19,660 3.51% Shanghai Chinese Rest. 1 $4,100 $2,744 Included Sep-02 Sep-12 None N/A Option 1 Executed Lease in CAM 9 Local 1,000 1.27% $17.75 $17,750 3.17% Sun Nail & Spa 1 $3,860 $2,494 Included Aug-02 Aug-08 None $17.75/SF 09/01/07 None Executed Lease in CAM 10 Local 1,000 1.27% $20.71 $20,710 3.70% Signature Cleaners 1 $3,680 $2,494 Included Aug-02 Aug-08 None N/A Option 1 - 2 Executed Lease in CAM 11 Local 6,000 7.63% $21.56 $129,360 23.11% Tampa Children's Hospital 1 $22,800 $14,966 Included Oct-02 Sep-10 None N/A Option 2 - 3 Executed Lease in CAM 78,686 100% $7.11 $559,698 100%

NOTE: Albertsons pays taxes and insurance separately Great Clips lease term extended for analysis

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Twelve Months’ Scheduled Rents

Tenant Square May-07 Annual CAM Tax Trade Name Feet Rent/SF May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 Total Recovery Recovery Albertsons 61,286 $3.34 17,058 17,058 17,058 17,058 17,058 17,058 17,058 17,058 17,058 17,058 17,058 17,058 $204,695 50,206 0 DHM, Inc. 2,400 $18.00 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 3,600 $43,200 8,400 6,585 Cutie Beauty Salon 1,200 $16.88 1,688 1,688 1,688 1,688 1,688 1,788 1,788 1,788 1,788 1,788 1,788 1,788 $20,956 4,560 2,993 Mark Grotheer (Pizza) 1,200 $24.96 2,496 2,496 2,496 2,496 2,496 2,496 2,496 2,496 2,496 2,496 2,496 2,496 $29,952 3,000 2,993 NEW TENANT 900 $22.00 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 $19,800 3,510 2,245 Dollar Party 1,500 $20.05 2,506 2,506 2,506 2,506 2,506 2,506 2,506 2,506 2,506 2,506 2,506 2,506 $30,075 3,360 3,742 Great Clips 1,200 $20 .20 2,020 2,020 2,020 2,020 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 $24,080 4,560 2,993 Shanghai Chinese Res’t 1,000 $19.66 1,638 1,638 1,638 1,638 1,638 1,638 1,638 1,638 1,638 1,638 1,638 1,638 $19,660 4,100 2,744 Sun Nail & Spa 1,000 $17.75 1,479 1,479 1,479 1,479 1,479 1,479 1,479 1,479 1,479 1,479 1,479 1,479 $17,750 3,860 2,494 Signature Cleaners 1,000 $20.71 1,726 1,726 1,726 1,726 1,726 1,726 1,726 1,726 1,726 1,726 1,726 1,726 $20,710 3,680 2,494 Tampa Children's Hospital 6,000 $21.56 10,780 10,780 10,780 10,780 10,780 10,780 10,780 10,780 10,780 10,780 10,780 10,780 $129,360 22,800 14,966 Monthly Total: 78,686 $46,642 $46,642 $46,642 $46,642 $46,622 $46,722 $46,722 $46,722 $46,722 $46,722 $46,722 $46,722 $560,238 112,036 44,250 Income: $560,238 112,036 44,250

Blue: indicates month of rent increase*. Actual 78,686 100% Model 78,686 100%

Anchor Rent: 204,695 100% Shops Rent: 355,543

Integrity Experience Results 25 Bloomingdale Hills Riverview, Florida

Executive Summary Property Overview Tenant Information Financial Analysis Market SummarSummaryy Offering Terms & Conditions

Tampa Overview The business climate and overall economy in Tampa and Hillsborough County couldn’t be better. In fact, the Tampa economy is one of the strongest in the country. Tampa has a healthy mix of businesses, from financial services and bioscience, to technology and international trade. Tampa also ranks among the best metropolitan areas in the nation for its low cost of living. With no state income tax and low cost of housing, health care and groceries, there’s no shortage of people who want to live and work in Tampa. During the recession, when the nation’s unemploy- ment rate spiked, Tampa escaped the national average. Currently, the Tampa MSA boasts a 3.0% unemployment rate and Hillsborough County boasts a low 2.8%. Many businesses and employees are taking a closer look at Tampa, and that is why the Tampa area is getting a lot of national attention.

Location & Access Tampa is ideally located on Florida’s West Coast, and features miles of glistening waterways and sandy shorelines. Its central location provides easy access to the nearby Gulf beaches and surrounding areas. Tampa’s waterfront consists of both Hillsborough Bay and Tampa, as well as the beautiful Hillsborough and Alafia rivers and several area lakes. Several major interstates and highways converge in Tampa, creating easy access from any point in the state. Interstate 4 and Highway 60 bring travelers from eastern areas, including Plant City, Lakeland, and Orlando. Interstate 75 and Highway 301 accommodate those traveling from points north and south, including Bloomingdale, Brandon, Riverview, Gainesville, Ocala, Bradenton and Sarasota. Two 15-mile toll roads exist in Tampa, the Veterans Expressway (State Road 589) and the Lee Roy Selmon Expressway (State Road 618).

Integrity Experience Results 26 Bloomingdale Hills Riverview, Florida

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Business & Economy Tampa is ranked as one of the Best Places to Live and Work in America. The economy is one of the strongest in the country. It has what employers and individuals are looking for: • a diverse and expanding business mix, • a thriving economy, • a vibrant job market and • a multilingual, highly trained workforce supported by outstanding educational institutions. It is considered one of the best locations for start-ups in the country. The Chamber of Commerce is also committed to attracting new businesses and helping them grow. Tampa has a very bright future due to the business climate throughout the community. Tampa has a healthy mix of businesses, from financial services and bioscience, to technology and international trade.

Hillsborough County Located midway along the west coast of Florida, Hillsborough County has 1,048 square miles of land and 24 square miles of inland water area for a total of 1,072 square miles. The unincorporated area encompasses 909 square miles, or more than 84 percent of the total county area. Municipalities account for 163 square miles. It is perhaps surprising that Tampa, Plant City, and Temple Terrace are the county’s only incorporated places. For a county of its size, Hillsborough has an unusually high number of communities that are unincorporated, and an unusually high percentage of its people living in these areas.

Riverview Demographics The population of Riverview and the neighboring communities of Seffner, Limona, Valrico, Mango, Brandon, Bloomingdale, Durant, Lithia and Dover is about 178,808 with over 62,000 households. Riverview has become a community of young, well-to-do profession- als, many of whom commute to Tampa. According to the 2000 census, 45.9% have incomes of $75,000 or more a year. The average age of the Riverview population is 34 years and 45% of the population over 25 years of age have had some college education or a college degree.

Integrity Experience Results 27 Bloomingdale Hills Riverview, Florida

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Riverview Commercial Growth Riverview has grown by leaps and bounds and has become a major urban community area. New public schools, anchored shopping centers, corporate centers and industries are opening daily. Riverview has grown as a result of the nearby Brandon (2 miles away). Since the expansion of Westfield Brandon, formerly known as Brandon Town Center Mall, the mall has been a catalyst for growth in the nearby Riverview. The Chamber of Commerce is now getting three times as many requests for information from businesses looking to expand in the Riverview / Brandon area. Businesses all over the area are feeling the impact of the mall. The Westfield Brandon draws new customers to the area from all over the state due to its special tenant structure and advanced design. It is also a favorite stop for many international visitors. One million shoppers visited the mall during its first 17 days in operation. The mall potential helped the developer to sign up 70% of the mall’s tenants before the $200 million project was even financed. Now, new stores and shopping centers and residential developments are popping up all around the area of Riverview and Brandon.

Education Students of every age can achieve their educational goals in the Tampa area. For families with young children, there are a variety of wonderful public and private school options to choose from. The public schools of Hillsborough County equaled or excelled the state’s average in scores on FCAT tests, school district monies spent per student and senior graduation rates. Adult students can choose to attend one of many major colleges, universities, technical and trade schools. Tampa is home to a respected medical school, top-ranked law school, private national liberal arts college and several graduate schools. Hillsborough County has the eighth largest school district in the United States consisting of 206 schools (133 elementary schools, 42 middle schools, 2 K-8 schools, 25 high schools and 4 career centers; 73 additional schools including charter, ESE, etc. Twelve out of Hillsborough County’s 23 high schools are ranked in Newsweek’s list of America’s Best High Schools.

Integrity Experience Results 28 Bloomingdale Hills Riverview, Florida

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Housing Tampa has a wide variety of lifestyle opportunities including a home with a bay view, high rise downtown skyline, a gated community villa, or a historic bungalow with quaint shops within walking distance. There are many choices in Tampa and very affordable. Home prices are well below other metropolitan areas in Florida, with the median price of an existing home is only $209,700 compared to the state median price of $236,000. The Tampa area is not only home buyer friendly, it is also a great place for renters offering many apartment choices, including modern buildings with up to date amenities, luxurious pools and fitness centers.

Transportation Tampa International Airport (TIA), considered the best airport in the world, offers an average of 265 daily nonstop scheduled departures to 50 domestic destinations and 44 weekly nonstops to seven international markets. TIA continues to receive numerous official votes of confidence from global customer groups for being one of the world’s most user-friendly air travel facilities. Tampa area residents enjoy many convenient methods of transportation, including three major interstate highways, a trolley system and electric streetcar line in downtown Tampa and an efficient bus system managed by Hillsborough Area Regional Transit. Additionally, Tampa will be constructing more than 400 new miles of lane highway within the next five years.

Conclusion As the largest city on Florida’s west coast, Tampa is a convergence of culture, business and entertainment. Tampa’s eclectic and burgeoning arts district includes the Tampa Performing Art Center, the Tampa Museum of Art, and construction is underway for a river walk along the Hillsborough River. The Ybor City Historic District, which reflects a distinct Cuban flair, is a work of art itself, blending restored structures from the early twentieth century with museums, shopping and a fast-paced nightlife. The Port of Tampa helps facilitate the needs of this business community by offering the largest deep-water port in Florida. In addition, the Port provides access to five major cruise lines with exotic destinations. Local attractions include Busch Gardens, Adventure Island and the Lowry Park Zoo, all drawing millions of visitors each year. Tampa also supports several professional sports, including the 2002 Super Bowl Champion Buccaneers football team and the 2004 Stanley Cup Champion Lightning hockey team. Tropicana Field, which hosts the Tampa Devil Rays baseball team, is a short drive from downtown Tampa.

Integrity Experience Results 29 Bloomingdale Hills Riverview, Florida

Executive Summary Property Overview Tenant Information Financial Analysis Market Summary OfferingOffering TermsTerms && ConditionsConditions

Offering Terms and Conditions

The delivery of this Investment Property Offering is not intended to determining whether it wishes to proceed with an in-depth investi- constitute an offer, but is merely a solicitation of interest with respect to gation of the subject Property. While this information is from sources a possible sale of one or more properties (collectively, the “Properties” deemed reliable, neither Agent nor Seller nor any of their respective and each a “Property”) owned by Developers Diversified Realty officers, employees, managers, affiliates, advisors or agents has Corporation (“Seller”) and marketed on behalf of Seller exclusively by independently verified it. Neither Agent, nor Seller, nor any of their Stone Ridge Capital, LLC (“Agent”). respective officers, employees, managers, affiliates, advisors or agents make any representations or warranties with respect to the information Please note Seller does not intend to consider any offers for the purchase contained in the Investment Property Offering. The projections and pro for any of the Properties which are not made on an “As Is” basis, with forma budgets contained in the Investment Property Offering represent no adjustments for physical, functional, economic or environmental estimates based on assumptions considered by Seller to be reasonable conditions. under the circumstances. No representations or warranties, expressed or The Investment Property Offering has been prepared solely for informa- implied, are made that actual results will conform to such projections. tional purposes. The Investment Property Offering does not purport to The Investment Property Offering is provided subject to errors, modifi- contain all of the information necessary to enable a prospective purchaser cations or withdrawal at any time, with or without notice. The contents of any of the Properties to reach a purchase decision. Neither Seller of the Investment Property Offering are not to be reproduced without nor Agent, nor any of their respective officers, employees, managers, the express written consent of Seller or Agent. affiliates, advisors or agents has made and, Seller hereby expressly Seller expressly reserves the right, in its sole discretion, to reject any or disclaims, any representation or warranty, expressed or implied, as to all expressions of interest or offers to purchase any of the Properties, the accuracy or completeness of the Investment Property Offering or and/or to terminate discussions with any prospective buyer, at any its contents. The information herein is confidential and intended solely time with or without notice. Seller shall have no legal commitment or for your use in determining whether you, acting as a principal, desire to obligation to any prospective buyer reviewing the Investment Property express an interest in the purchase of any of the Properties. Offering or making an offer to purchase any of the Properties unless Additional information and an opportunity to inspect the Properties, and until a definitive written agreement for the purchase and sale of or any of them, will be made available to interested and qualified the subject Property has been fully executed, delivered and approved by prospective buyers. Each prospective buyer is expected and directed to Seller, and any conditions to Seller’s obligations thereunder have been rely solely upon its own investigation, evaluation and judgments as to satisfied or waived. Agent is not authorized to make any representa- the advisability of purchasing any of the Properties described herein. No tions or agreements on behalf of Seller. prospective buyer is entitled to rely on any statement or information, By accepting the Investment Property Offering the recipient stipulates written or oral, provided by Seller or Agent, or any of their respective that it is acting as a principal only, and not as a broker, in the contem- officers, employees, managers, affiliates, advisors or agents with respect transaction. The recipient of this information further acknowl- to the Properties, or any of them. edges its sole liability for any commissions owed to any broker retained The information contained in the Investment Property Offering by such prospective buyer in connection with any prospective purchase is designed for the sole purpose of assisting a potential buyer in of a Property and agrees to indemnify and hold Seller harmless from and

Integrity Experience Results 30 Bloomingdale Hills Riverview, Florida

Executive Summary Property Overview Tenant Information Financial Analysis Market Summary OfferingOffering TermsTerms && ConditionsConditions

against any and all claims by and/or commissions owed to any broker, broker has waived any claim it may have against Seller, any agent of finder, or commissioned salesperson claiming by, through or under the Seller (including Agent), or any of the Properties, for any commission or prospective buyer. If the recipient is represented by a broker, then such fee based on the contemplated transaction involving the Properties, or party represents and warrants to Seller that such party has obtained the any of them. written agreement of any broker acting on behalf of such party that the broker is bound by the terms and conditions hereof and that such

Procedure for Written Offers Agent has been retained by Seller to exclusively market for sale the Properties. All offers should be in writing and delivered to the offices of Agent in a letter of intent form. Seller will only consider those letters of intent delivered at the prior invitation of the Seller or Agent. No consideration will be given to uninvited offers or offers submitted by real estate brokers or other intermediar- ies without the prior written approval of Seller. Seller will not pay any real estate commission or other form of compensation to any real estate broker or intermediary. Seller reserves the right to reject any or all proposals or offers and to negotiate with any investor exclusively at any time. All letters of intent or inquiries should be directed to Agent at the address, facsimile, e-mail and telephone numbers shown below:

Stone Ridge Capital, llc 295 West Crossville Road v. 678.722.2000 James D. Hudgins, Founder Suite 810 f. 678.722.2002 v. 678.722.2001 Roswell, Georgia 30075 stoneridgecapital.com [email protected]

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