8560 Sunset West Hollywood, CA 90069

OFFERING MEMORANDUM

Exclusive Advisors: Richard J. Plummer David C. Hasbrouck Andrew T. Harper (213) 955-6418 (213) 955-6410 (213) 955-6464

Local Leasing Experts: Anthony C. Gatti Andrew R. McDonald (213) 955-6436 (310) 595-2219

Cushman & Wakefield of California, Inc. 601 South Figueroa Street, 47th Floor Los Angeles, California 90017 Tel: 213.955.5100 Fax: 213.955.5124

CUSHMAN & WAKEFIELD CONFIDENTIALITY & DISCLAIMER

Statement of Confidentiality & Disclaimer

This Offering Memorandum is confidential and is furnished to prospective purchasers of the Property described herein subject to the terms of the Confidentiality Agreement previously provided to and executed by such prospective purchasers. This Memorandum is intended solely to assist prospective purchasers in their evaluation of the Property and their consideration of whether to purchase the Property. It is not to be used for any other purpose or made available to any other person without the prior written consent of the Owner of the Property.

This Memorandum was prepared on the basis of information available to the Owner and to Cushman & Wakefield of California, Inc., the Owner’s exclusive agent in connection with the sale of the Property. It contains pertinent information about the Property and the surrounding area but it does not contain all the information necessary for a complete evaluation of the Property. The projected cash flow and other financial information contained herein are for reference only.

Although the information contained in this Memorandum is believed to be accurate and reliable, neither the Seller nor its agent guarantees its accuracy or completeness. Because of the foregoing and because the Property will be sold on an “as is” basis, prospective purchasers should make their own independent assessments, investigations, and projections regarding the Property. Although additional material, which may include engineering, environmental, or other reports, may be provided to certain prospective purchasers as appropriate, such parties should confer with their own engineering and environmental experts, counsel, accountants, and other advisors.

The Owner expressly reserves the right, in its sole discretion, to reject any offer to purchase the Property or to terminate any negotiations with any party at any time, with or without notice. The Owner shall have no legal commitment or obligation to any prospective purchaser unless and until a written Purchase and Sale Agreement has been fully executed and delivered and any and all conditions to the Owner’s obligations thereunder have been fully satisfied or waived.

The Owner is responsible for any commission due its agent in connection with a sale of the Property. The Owner shall not be responsible for any commission claimed by any other agent or broker in connection with a sale of the Property. No other party, including the Owner’s agent, is authorized to make any representation agreement on behalf of the Owner. This Memorandum remains the Property of the Owner and its agent and may be used only by parties approved by the Owner and its agent. No portion of this Memorandum may be copied or otherwise reproduced or disclosed to anyone except as provided herein and as permitted by the express terms of the Confidentiality Agreement.

CUSHMAN & WAKEFIELD

TABLE OF CONTENTS

Executive Summary The Offering ...... 1 Property Highlights ...... 1 Investment Highlights ...... 2 Financial Information ...... 2 Guidelines for Prospective Purchasers ...... 3

Area Description Westside Map ...... 4 West Los Angeles Overview ...... 5 Sunset Millennium Project ...... 14

Property Description Property Overview ...... 17 Improvements Description ...... 18 Site Description ...... 20 Typical Floor Plans ...... 21

Market Analysis Westside Los Angeles Market Overview ...... 23 West Hollywood Submarket Overview ...... 27 Sunset Millennium Competitive Subset ...... 29 8560 Sunset Competitive Leasing Niche ...... 29

Financial Analysis Investment Highlights ...... 33 10-Year Cash Flow Analysis ...... 34 Cash Flow Assumptions ...... 35

Tenant Information Selected Tenant Overviews ...... 37 Rent Roll ...... 39 Building Stacking Plan ...... 40

CUSHMAN & WAKEFIELD

EXECUTIVE SUMMARY

THE OFFERING

Cushman & Wakefield of California, Inc. ("C&W"), as exclusive advisor and agent of the Owner, is pleased to offer for sale 8560 Sunset, West Hollywood, California (the "Property"). 8560 Sunset is a ten-story modern office building with an outstanding location in the heart of the Sunset Strip and is considered the best office building in the West Hollywood submarket. The Property contains 70,639 rentable square feet with parking for 173 vehicles in a convenient, two-level subterranean parking garage attached to the building and in an adjacent 962-stall parking garage. 8560 Sunset lies within the three-block Sunset Millennium Project. This high-end, urban residential, retail and office mixed-use development is anchored to the west of the building by 100,000 square feet of new retail, restaurants, and Equinox, an upscale fitness center. The east end of Sunset Millennium will include two luxury hotels totaling 300 rooms.

PROPERTY HIGHLIGHTS „ Situated high atop Sunset Boulevard, 8560 Sunset provides spectacular views of West Los Angeles from virtually every floor. „ The Property recently underwent a comprehensive capital renovation program creating a virtually new building. The $10 million renovation consisted of new skin, mechanical systems, common areas, and a fire/life safety system. „ Unique, irreplaceable real estate in the greater West Los Angeles office market. „ Excellent location offering tenants access to some of the best retail, dining, entertainment and high- end housing in Southern California. „ With a strategic West Hollywood location along the Sunset Strip, 8560 Sunset is located at the heart of the entertainment and media industries. „ 8560 Sunset is adjacent to high-end executive housing in the Hollywood Hills, Beverly Hills, Bel Air and other elite west side communities.

CUSHMAN & WAKEFIELD 1 EXECUTIVE SUMMARY

INVESTMENT HIGHLIGHTS „ The Property is 100% leased to six tenants. „ Limited lease expiration exposure allowing for substantial leverage. „ 8560 Sunset is situated in the highly desirable West Hollywood/Beverly Hills office market, an office market with major barriers for future development. „ Due to recent capital upgrades, relatively new tenant improvements, and the institutional quality of ownership, low capital expenditures will be required in the near-term.

FINANCIAL INFORMATION Effective Gross Income ...... $2,791,300 ($39.51 psf) Total Expenses ...... $904,200 ($12.80 psf) Net Operating Income ...... $1,887,100 ($26.71 psf)

2 CUSHMAN & WAKEFIELD EXECUTIVE SUMMARY

GUIDELINES FOR PROSPECTIVE PURCHASERS

The Property is being offered without an asking price.

Bids Bids should be submitted to Cushman & Wakefield of California, Inc. in a non-binding Letter of Intent format.

Terms of the Sale

The purchase price shall be payable "All Cash" to Seller at the close of escrow. Other terms and conditions shall be in accordance with Seller's Purchase and Sale Agreement (The PSA) which shall include, among other things, an "As Is" sale.

Seller will not pay any other commission or other consideration to any broker or intermediary other than its agent, Cushman & Wakefield, Inc. The Seller reserves the right to negotiate with any party on an exclusive basis at any time. The Seller also reserves the unrestricted right to reject any or all proposals.

CUSHMAN & WAKEFIELD 3 8560 Sunset AREA DESCRIPTION

WEST LOS ANGELES OVERVIEW

8560 Sunset is located in the highly desirable West Los Angeles area of Los Angeles County, internationally recognized as a premier business and living environment. The area known as "West Los Angeles" is generally bounded by the scenic Santa Monica Mountains to the north, Westchester and the beach city of Playa del Rey to the south, the Pacific Ocean to the west and La Cienega Boulevard to the east. West Los Angles is comprised of several of Southern California's most coveted, distinct communities and cities: Santa Monica, Marina del Rey, Culver City, Brentwood, Westwood, Century City, Beverly Hills, Westchester, Playa del Rey and West Hollywood.

West Los Angeles offers the perfect blend of living and business quality of life that is evidenced by the cadre of prominent employers who make it home - technology, entertainment, media, law, accounting, and advertising firms, as well as finance, insurance, and real estate services companies. Many of these firms (particularly those in the entertainment, technology and high-end service industries) face increased competition in attracting skilled personnel and have found that a West Los Angeles location is a prerequisite of hiring and retaining qualified help. In addition, many of these firms are in high-margin industries, relatively insensitive to rental costs, but highly sensitive to location.

The region's prestigious location benefits materially from the existing critical mass of similar firms and support services in the area, access to a highly educated labor force and ease of access to executive and employee housing. Upscale residential communities in the area include Beverly Hills, Bel Air, Pacific Palisades, Brentwood, Malibu and Santa Monica.

City of West Hollywood

The City of West Hollywood has come to define Los Angeles culture. Situated along the base of the Santa Monica Mountains to the north, the redeveloping Hollywood to the east and Beverly Hills on the west, West Hollywood is the West Coast's premier destination of music, interior design, art galleries, showrooms, specialty shops, hotels and restaurants.

Known for its progressive attitude, West Hollywood has a long and colorful history as a haven for the Los Angeles entertainment community. The one and one-half mile stretch of Sunset Boulevard between Hollywood and Beverly Hills gained notoriety

CUSHMAN & WAKEFIELD 5 AREA DESCRIPTION

in the '20s and '30s with the construction of several movie studios and sophisticated nightclubs such as the Trocadero, Ciro's and The Mocambo. Famous film stars and others of more infamous repute flocked to "The Strip" to play and be seen in what was becoming one of the hottest nightspots in the world. The Art Deco style took root with the Los Angeles architectural crowd, and by the '40s, The Strip evoked a sense of elegance, sophistication and fantasy. Within twenty years, The Strip had progressed from a relative entertainment backwater to the home addresses of people like Howard Hughes, John Wayne, Billie Burke, and Bugsy Siegel. This one and one half-mile stretch of pavement had come to embody the outside world's vision of "Hollywood".

The '50s saw The Strip continue to mature as TV focused its lens on the nightlife and the stars attracted to Sunset Boulevard. The '60s brought the establishment of the most influential rock clubs on the West Coast. Clubs like the Whiskey-A-Go-Go, Gazzarri's, and the Troubador played host to new acts such as The Doors, The Who, The Rolling Stones, Buffalo Springfield and The Byrds. By the late '60s, West Hollywood was the heart of the Rock 'N Roll scene in the United States. It would not be long before West Hollywood would become the epicenter for the music industry as well.

Still considered one of the West Coast's hottest nightspots, West Hollywood attracts local and tourist traffic to over a dozen luxury hotels and over 100 restaurants, bars and nightclubs. Specialty couture shops and café-lined sidewalks also attract aesthetically minded consumers worldwide to this pedestrian friendly city. Music venues such as The House of Blues and The Key Club continue the tradition of showcasing today's most recognizable music artists.

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Access and Transportation

West Hollywood is indirectly served by two freeways and a series of major and secondary local thoroughfares. The Hollywood Freeway (US 101) is two miles east of the city limits and provides access between the San Fernando Valley and downtown Los Angeles. The Santa Monica Freeway (Interstate 10) is three miles south of the city limits. This freeway provides access between the City of Santa Monica (Pacific Ocean) and the Los Angeles County limits.

Major east/west arterials include Sunset and Santa Monica boulevards, and Melrose Avenue. North/south primary arterials include Doheny Drive; Robertson, San Vicente, and La Cienega boulevards; and Fairfax and La Brea avenues.

The City of West Hollywood is served by local and regional bus service. The city is also indirectly served by the Metro Rail Red Line. This subway line runs between North Hollywood and downtown Los Angeles (Union Station). At its central hub in downtown, transfers to the Blue Line, Green Line, Gold Line and commuter rail network are easily accommodated. The closest station is located at the intersection of Hollywood Boulevard and Highland Avenue in the Hollywood district to the east.

National and international passenger and airfreight service is provided by Los Angeles International Airport.

CUSHMAN & WAKEFIELD 7 AREA DESCRIPTION

The Sunset Strip

The enduring value of a West Hollywood location has been building since the 1920s, when the world's eyes turned to Hollywood and the glittery nightlife just beyond its western border. The Sunset Strip became the place for celebrities to play and be seen. The '20s and '30s also brought the construction of several movie studios, and many architecturally distinct properties to the one and one-half mile stretch between Hollywood and Beverly Hills. Nightclubs like the Trocadero, Ciro's and The Mocambo were the world's hottest nightspots.

Notoriety of The Strip continued to grow during the '40s and '50s. The legendary Schwab's Pharmacy (now a Virgin Megastore) served as William Holden's combination office, coffee klatch and waiting room for would-be actors and writers in the movie "Sunset Strip". In the early '60s, the Warner Bros. Hit "77 Sunset Strip" - the first hour-long private eye series for television - featured shots of Dino's Lodge, with stars like Efram Zimbalist, Jr. tooling around in a Corvette.

In the late '60s, West Hollywood's renowned nightlife continued with the arrival of clubs like the Whiskey-A-Go-Go and Troubadour. Typical of the scene in West Hollywood, nightlife impacted business life, making West Hollywood the center for the growing music industry.

Today is much the same in that Southern California residents and tourists from afar embrace The Strip's premier collection of rock clubs, restaurants, boutiques, and Hollywood nightspots that are

8 CUSHMAN & WAKEFIELD AREA DESCRIPTION

on the cutting edge of the entertainment business. Popular attractions include the House of Blues, Key Club, Comedy Store, Virgin Megastore, Chateau Marmont, the Laugh Factory, Tower Records, Skybar, and many more.

Santa Monica Boulevard

What was once the last few miles of the famed Route 66 is now the "Main Street" of West Hollywood. Unlike The Strip, Santa Monica Boulevard is not home to multi-story office buildings, and does not offer the variety of independently owned boutiques and dining choices. "The Boulevard" does offer the choice of larger, national retail, restaurant and grocery chains within walking distance of housing.

Recently the recipient of a two-year, $34 million redevelopment and beautification plan, this three-mile long stretch of Santa Monica Boulevard is now tree-lined and landscaped with bike paths and large expanses of greenspace. The city has won numerous awards for the redevelopment of this famed boulevard, including the prestigious National American Institute of Architects Honor Award for Regional and Urban Design.

CUSHMAN & WAKEFIELD 9 AREA DESCRIPTION

Retail and Shopping

Unlike the great majority of Los Angeles, West Hollywood is best experienced by foot. Foot traffic has made the boutiques of West Hollywood among the most varied, fashionable and successful retail stores in the world. Hip fashion boutiques of Melrose Avenue and exclusive art galleries and antique shops perpetuate West Hollywood's eclectic, fashion-forward legacy.

Just outside the city's borders, at the corner of La Cienega and Beverly Boulevards, stands the highly successful Beverly Center. With 200 stores, 13 movie theatres and a food court contained within 900,000 square feet, the Beverly Center is the largest enclosed shopping center in the City of Los Angeles.

Avenues of Art and Design

Established as a Business Improvement District (BID) in 1996, The Avenues of Art and Design has grown to become the West Coast's premier destination of interior design, art galleries, showrooms, specialty shops and restaurants. The district encompasses key sections of Melrose Avenue, Beverly and Robertson Boulevards and complements the city's pedestrian friendly culture. The BID consists of over 400 local businesses, which are assessed modest amounts for the purpose of promoting the area as a unique shopping and commercial destination.

10 CUSHMAN & WAKEFIELD AREA DESCRIPTION

Hotel Accommodations

West Hollywood is home to a collection of the trendiest boutique and small luxury hotels to be found anywhere. Choices include Ian Shrager's landmark Mondrian, the secluded Sunset Marquis Hotel and Villas, the legendary Chateau Marmont, the trendy Standard Hotel and the art-deco masterpiece of the Argyle. West Hollywood's shared border with Beverly Hills places some of the world's most exclusive hotels within close proximity as well. Beverly Hills hotels including The Peninsula, The Regent Beverly Wilshire, The Four Seasons and the Beverly Hills Hotel are all readily accessible to The Strip.

CUSHMAN & WAKEFIELD 11 AREA DESCRIPTION

Dining Amenities

West Hollywood has long been known for its unparalleled number and variety of top class culinary destinations. According to the 2003 Zagat Restaurant Survey, West Hollywood is home to more top-rated restaurants per square mile than any city in Southern California. It was on The Strip that Wolfgang Puck founded his celebrated Spago restaurant, an institution that revolutionized Los Angeles and California cuisine. Other popular restaurants include Morton's, Le Colonial, Fenix at the Arglye, and Asia de Cuba and the Skybar at the Mondrian.

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Business Environment

The historically pro-business government of the city of West Hollywood has attracted numerous companies to relocate to the area. The city benefits from one of the lowest business tax rates in Los Angeles County along with no taxes on either parking or utilities. West Hollywood has established a business environment that continues to retain tenants within the city long-term.

Business Profile # of Percent 10 Largest Employers in Businesses West Hollywood

Retail/Wholesale and Manufacturers 860 53% 1) The Los Angeles County MTA Corporate Headquarters 35 2% 2) Pacific Design Center Service Providers 487 29% 3) The Lot Production: TV, Radio, Motion 70 4% Pictures & Publishing 4) House of Blues

Professionals 202 12% 5) The Vons Companies

6) Wyndham Bel Age Hotel

7) City of West Hollywood

8) Hyatt West Hollywood

9) The Mondrian Hotel

10) Le Parc

CUSHMAN & WAKEFIELD 13 AREA DESCRIPTION

SUNSET MILLENNIUM PROJECT

Sunset Millennium is a Class A, high profile project encompassing three prime blocks along the Sunset Strip and promises to be one of the most exciting mixed-use developments in Southern California. When completed, the project is presently anticipated to feature over 70,000 square feet of Class A office space, 140,000 square feet of high-end retail space and restaurants, luxury condominium units, and an organized parking district. The development is broken into the following three parcels:

West Parcel - The West Parcel is nearing completion. This parcel includes 8560 Sunset. More than 80,000 square feet of retail space and 19,000 square feet of restaurants are also included. This retail center will feature Equinox, an upscale fitness center along with three fine-dining restaurants: Central, Norman's, and Rika.

Middle Parcel - The Middle Parcel development plan presently contemplates a pedestrian-oriented development of retail, restaurants and two luxury condominium buildings. The complexes will offer stimulating retail and restaurants with outdoor dining areas. Public and private parking will be located in a below Sunset Boulevard grade parking structure.

East Parcel - The East Parcel is planned to contain restaurants, retail and two, first class hotels. The hotels will also be complemented by retail and restaurants and will have outdoor dining areas and a landscaped view corridor from Sunset Boulevard. Public parking will be available in a parking structure below Sunset Boulevard.

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The Sunset Millennium Project includes plans for a new Vehicular Access Corridor (VAC) connecting the House of Blues parking lot directly to the East Parcel's parking structure. A new tunnel beneath La Cienega will connect to the Middle Parcel parking garage. An on-grade connection on Alta Loma Boulevard will connect the Middle and West Parcels. The new VAC will relieve traffic on Sunset Boulevard by connecting the East, Middle and existing West parcels, without cars circulating on the City of West Hollywood streets. The VAC will be signaled, allowing for reversal of traffic flow at peak hours.

8560 Sunset

CUSHMAN & WAKEFIELD 15

PROPERTY DESCRIPTION

PROPERTY OVERVIEW

8560 Sunset is a ten-story office tower occupying a prominent and highly visible location within West Hollywood. Totaling 70,639 rentable square feet, 8560 Sunset is one of only a limited number of office buildings of its size and height, as new office construction is now limited to 100 feet in height. Benefiting from excellent proximity to desirable West Hollywood residential neighborhoods, retail, restaurants and hotels, the Property enjoys its unique and irreplaceable location along the legendary Sunset Strip.

Address: 8560 Sunset Boulevard West Hollywood, CA 90069

Location: Southwest corner of the intersection of Sunset Boulevard and Alta Loma Road. Shopping, restaurants, hotels and entertainment are all within a few blocks.

Access: At the street level, the building features a Sunset Boulevard entrance. Automobile access is provided via a driveway from Alta Loma Road.

Floors: 10

Occupancy: 100%

CUSHMAN & WAKEFIELD 17 PROPERTY DESCRIPTION

IMPROVEMENTS DESCRIPTION

8560 Sunset was vacated from April 2000 to March 2001 while the building was stripped down to its concrete frame. A new building was built on its seismically enhanced frame including a new roof, curtain wall, common area, and mechanical equipment.

Year Built/Renovated: 1963/2001

Developer(Renovation): Apollo Real Estate Advisors, L.P.

Design Architects: Nadel Architects, Inc.

Contractor: PCL

Structural Engineer: Englekirk Partners

Construction: Foundation - Poured reinforced concrete. Frame - Poured reinforced concrete. Exterior Walls - Concrete walls and aluminum frames. Ceiling System - The ceiling system is a mix of suspended acoustical panels, smooth finish plaster, and decorative tile coverings. Interior Partition System - Wood or metal studs with gypsum board.

Building Skin: New curtain wall, high performance glass system with aluminum mullions. Installation date: 2001.

Roof: Insulated, build-up torch-down tar paper with gravel, metal flashing around perimeter, lead flashing on all penetrations. Installation date: 2001.

Lobby: The ground floor lobby is finished with granite tiles, fluorescent lighting and floor-to ceiling entry glass.

Public Halls and Corridors: Common area hallways are finished with wall-to-wall carpeting and the interior walls are painted and/or wallpapered.

HVAC: Heating and air conditioning are provided through a central roof-mounted system. Each floor is equipped with zoned thermostats.

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HVAC (continued): Fully upgraded in 2001 with the exception of the air handler fans and motor, which were reused. Two new chillers (1 York 50-ton capacity, 1 York 182-ton capacity). Main fan is a Carrier 62,00 CFM capacity. All new chilled water piping system and cooling coils. New auxiliary chilled water loop for tenant use. Closed loop system with variable air volume. Electric strip heating. Installation date: 2001. An Automated Logic Corporation energy management system allows tenant to easily request off-hours HVAC.

Plumbing: All new plumbing stub-ups and lines, upgraded to copper for domestic water, and a new booster pump system. All new sewer lines. Domestic water system is a Tiger Flow house pump with 185-gallon bladder tank. Installation date: 2001.

Electrical: All new electrical system and wiring. GE Spectra switch boards. Brand new bus duct. 1,600 amps @ 480 volts capacity. Installation date: 2001.

Lighting: A mix of recessed fluorescent lights and wall-mounted incandescent fixtures. Some of the office space is equipped with hanging light fixtures.

Elevators: Two Westinghouse traction elevators serve the building with 2,500 pounds capacity per car. Remodeled cab interiors and a new digital control system was installed in 2001.

Fire/Life: The building has a centrally monitored fire alarm system. New installation of Cerberus Pyrotronics MXL fire control panel and field devices. Building is 100% sprinklered. Emergency generator manufactured by Cummins Onan, 200kw @ 480 volts.

Fire pump system was installed in 1993. Detroit Diesel, Peerless Fire Pump 750 gallons per minute.

Parking: On-site parking is located in a two-level subterranean parking garage, totaling 16,619 square feet with capacity for 25 vehicles. There is a parking covenant and parking easement for 148 parking spaces benefiting the 8560 Sunset tenants, in the adjoining 962-stall subterranean garage. The total available parking is 173 spaces, resulting in a parking ratio equal to 2.40 per 1,000 square feet of rentable building area. All 173 parking spaces are encumbered with a 10- year garage lease operated by Central Parking. 8560 Sunset ownership is not responsible for any parking expenses, nor does ownership enjoy any parking income. Central Parking may charge all 8560 Sunset tenants market rate for parking spaces. An abundance of valet and self parking is also available for transient parkers in the adjoining 962-stall garage. Parking rates are regulated by the City of West Hollywood.

CUSHMAN & WAKEFIELD 19 PROPERTY DESCRIPTION

Security: The building employs one guard on a 24-hour, seven-day basis and is also equipped with a video surveillance system. A new DSS Security System with proximity card readers provides after hour access to the main entry door, elevator cabs, and parking levels. A new First Line digital security camera system monitors the main lobby, both emergency egresses, and both parking levels. Installation date: 2001.

Signage/Tall Wall Easement: 8560 Sunset is encumbered with an exclusive sign easement to Clear Channel Outdoor, Inc. (CCO) for a 30-year term. This sign easement encumbers the three eastern tall walls and the western tall wall. Typical on-premises tenant signage, building naming rights and related signage have been retained by the building ownership. The sign easement has been prepaid and building ownership does not receive any further income. COO is provided reasonable access to the sign easement area as well as reasonable access through the interior of the building to the roof. Ownership shall make available electrical utilities for lighting the signs, but COO incurs all costs and expenses for signage lighting. Ownership is responsible for payment of all real estate taxes assessed against the real estate including the value of the sign easement. COO is responsible for all other taxes, permits, licenses, and fees assessed against the sign easement. COO is solely responsible for all costs of installation, maintenance, repair and operation of the Sign Easement. All advertising material shall conform to all applicable laws and community standards for taste.

SITE DESCRIPTION

Location: Southwest corner of the intersection of Sunset Boulevard and Alta Loma Road.

Land Area: 0.23 Acres

Frontage: ± 131 feet along Sunset Boulevard ± 192 feet along Alta Loma Road

Zoning: SSP - Sunset Specific Plan

Assessor's Parcel Number: 5559-001-019

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TYPICAL FLOOR PLANS

1st Floor

5th Floor

10th Floor

CUSHMAN & WAKEFIELD 21 8560 Sunset MARKET ANALYSIS

WESTSIDE LOS ANGELES MARKET OVERVIEW

The westside Los Angeles market is comprised of 13 distinct submarkets within four separate sectors. These sectors generally function independently of one another, despite their close proximity. The following chart shows the division of the four sectors into the 13 submarkets.

These sectors are differentiated according to location and access, market perception Sector 1 and tenant appeal, improvement quality, and rental rates. The combined westside Los 1 Park Mile Angeles market contained 49,980,539 square feet of office area as of the end of second 2 Miracle Mile 3 Hollywood quarter, 2003. There were 7,418,084 square feet available for direct lease in the overall 4 West Hollywood westside office market, indicating a 14.8 percent direct vacancy rate. Including sublease Sector 2 availabilities, the overall vacancy rate was 17.7 percent. 5 Beverly Hills 6 Century City The westside market is widely acknowledged as the most desirable office location in Sector 3 Los Angeles County. This area is home for many executives in the greater Los Angeles 7 Westwood area and includes the upscale residential locations of Beverly Hills, Bel Air, Brentwood, 8 Brentwood 9 Santa Monica West Hollywood, Westwood, Santa Monica, and Hancock Park. The westside office 10 Pacific Palisades market is the preferred location for tenants from the entertainment industry, and is the 11 West Los Angeles headquarters location for numerous advertising agencies. Major components of the Sector 4 tenant base in the westside office market also include law, accounting, and financial 12 Marina del Rey/Venice services firms, as well as high-tech companies, foreign consulates, and corporate 13 Culver City/Westchester tenants.

The westside office market experienced high "double-digit" vacancy rates during the recession of 1990 through 1994 as the significant new supply of office space, completed during the latter half of the 1980's through 1992, coincided with the decline in demand during one of the most severe economic recessions in southern California history. During the period 1995 through 2000 the westside office market experienced positive absorption levels, declining vacancy rates and increasing rental rates as the economy recovered and continued to expand. This economic expansion coincided with a period of essentially no new development in the westside markets during the six-year period 1993 through 1998. Following 2000, however, economic conditions have "softened", negatively impacting most Los Angeles County markets, including the westside. During 2001- 2002, vacancy rates have increased significantly in the westside as a result of new construction and negative absorption. Conditions improved during the first half of 2003. Vacancy rates have started to drop as rents begin to firm.

CUSHMAN & WAKEFIELD 23 MARKET ANALYSIS

The net absorption of office space in the westside market area increased from virtually zero square feet during 1994 to 1,523,155 square feet during 1996. The 1996 figure represented the most significant positive absorption for the westside market area during this decade. The year-end, 1999 net absorption level was 1,755,029 square feet and 2000 absorption totaled over 1.4 million square feet. The positive absorption levels and the continued absence of new Westside Los Angeles Vacancy and Rental Rate development prior to 1999 resulted in continued declining vacancy rates and increasing rents, and larger contiguous "blocks" of space became increasingly scarce. More recently, however, the westside market experienced negative absorption levels and the "premature" loss of a number of "dot-com" tenants such as E-Toys (150,000 square feet) and subleasing activity from tenants such as X-Drive, Sony, Turner Broadcasting, and Sapient. As of year-end, 2001 and 2002 there had been negative absorption nearly 1.9 million (2001) and 1.03 million (2002) square feet in these markets and an increase in larger contiguous blocks of space in the westside. This trend has reversed during the first two quarters of 2003 with positive absorption of 1.04 million square feet in the westside markets.

Increased absorption and declining vacancy rates resulted in spiking rental rates, particularly from 1996 through 2000 prior to leveling off during 2001 and declining during 2002 and year-to-date 2003, as shown in the exhibit below.

Although the weighted average asking rental rate showed an increase of 8.3 percent during 2001 in comparison to 2000, achieved rental rates began to soften and decline over the course of 2001, leading to a decline of 7.8 percent during 2002. Rents appear to have stabilized during year 2003.

Primary Competitive Westside Submarkets

On the following page, the 13 submarkets are listed with their sizes, vacancy rates and average rental rates.

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Office and Submarket Statistics Number Direct Vacancy Direct Overall Overall Vacancy Net Absorption Direct Wtd. Avg. Market / Submarket Inventory of Bldgs Availabilities Rate Availabilities Rate 2nd Qtr '03 Rental Rate

PARK MILE/WEST HOLLYWOOD 9,484,637 73 1,435,861 15.1% 1,769,977 18.7% 61,233 $24.05 1 Park Mile 1,032,587 10 102,420 9.9% 108,157 10.5% 15,141 $19.68 2 Miracle Mile 4,632,946 20 654,097 14.1% 953,400 20.6% 54,291 $23.76 3 Hollywood 2,442,216 27 534,222 21.9% 542,622 22.2% (26,137) $23.16 4 West Hollywood 1,376,888 16 145,122 10.5% 165,798 12.0% 17,938 $31.68

BEVERLY HILLS/CENTURY CITY 15,753,364 92 2,043,370 13.0% 2,342,646 14.9% 861,980 $35.77 5 Beverly Hills 6,312,370 68 777,886 12.3% 840,826 13.3% 215,608 $35.40 6 Century City 9,440,994 24 1,265,484 13.4% 1,501,820 15.9% 646,372 $36.00

WESTWOOD/WEST LOS ANGELES 19,190,727 154 2,805,300 14.6% 3,445,464 18.0% (5,975) $32.87 7 Westwood 2,657,126 11 355,662 13.4% 663,058 25.0% 9,595 $35.04 8 Brentwood 3,256,119 23 433,198 13.3% 473,615 14.5% (88,030) $31.56 9 Santa Monica 7,334,037 66 1,109,896 15.1% 1,279,860 17.5% 56,780 $36.00 10 Pacific Palisades 160,407 3 30,060 18.7% 37,558 23.4% 5,371 $32.52 11 West Los Angeles 5,783,038 51 876,484 15.2% 991,373 17.1% 10,309 $28.68

MARINA AREA/CULVER CITY 5,551,811 47 1,133,553 20.4% 1,270,055 22.9% 122,874 $28.78 12 Marina Del Rey/Venice/MarVista 1,279,431 12 393,763 30.8% 435,678 34.1% (15,924) $29.64 13 Culver City/Westchester 4,272,380 35 739,790 17.3% 834,377 19.5% 138,798 $28.32

TOTAL 49,980,539 366 7,418,084 14.8% 8,828,142 17.7% 1,040,112 $31.34

Submarket Weighted Average Rental Rate Comparison Chart

Westside Los Angeles Submarket Size Comparison Westside Los Angeles Availabilities

CUSHMAN & WAKEFIELD 25 MARKET ANALYSIS

Westside Tenants

Entertainment - Motion Pictures, Television and Music Technology - Computer Services, E-Commerce, New Foothill Capital 20th Century Fox Media Frank Gehry & Associates Activision Alesis Studio Electronics* Freedman Broder & Company Actor's Equity Apple Computer Gensler AFTRA Broadband Sports Gillette Another Large Production Canon Communications Goldman Sachs Artisan Entertainment Carat USA Greenberg Traurig Banned from the Ranch Cypress West Haight Brown Bonesteel Bay Films Digiscope Herbalife International Bordertown Productions Ecompanies HOK Cablevision Excelergy IDS Financial Services Caravan Pictures Four Media J. Paul Getty Trust CBS Global Crossing* Japan Foundation Centropolis Effects GTE Mainstreet Jeffer Mangels Cinergi Hewlett Packard Jefferies Group Cognito Films, Inc. Hollywood On-Line Kaufman & Broad Creative Artists (Talent Agency) IBM Key Media Cybermedia IBM Interactive* Korn Ferry Daily Variety Industrial Light & Magic KPFF Engineering Delta Music Info Tech KPMG Peat Marwick Digital Ent. Network Latitude 90 LA Times E! Entertainment Launch Liberty Mutual EMI Music Publishing Lucent Technology Loeb & Loeb Epic Records Massive Media Manatt Phelps Focus Media Microsoft Marathon Bank Fox Sports Net New Wave Entertainment McGraw Hill Companies Fox Television Novell Merrill Lynch HBO OZ Digital Media/eCity Studios Mitchell Silberberg Hollywood Digital Perot Systems Morgan Stanley ICM (Talent Agency) Sun Microsystems Mutual of New York IMAX Symantec Corporation* Nelsen, Thompson Langley Productions TCI Northrop Grumman Corp. Maverick Records Todd AO Oppenheimer MGM/United Artists Rand Corporation MTV Networks/Viacom Professional - Financial, Insurance, Advertising, Law, Random House Pearson Television General Santa Monica College Playboy Enterprises, Inc. (relocating to Glendale) Abrams & Tanaka Sapient Corporation* Rysher Entertainment AG Edwards SoCal Physician's Exchange Saban Entertainment* Argonaut Insurance Paine Weber SAG (Screen Actor's Guild) Aurora Capital People's Bank Showtime Aurora National Life Perkins Will Sire Records Group Bear Stearns Pricewaterhouse Coopers Sony* Berger & Norton Protocare Sony Music Business Week Psomas & Associates Spelling Entertainment Campbell Ewald Prudential Securities TCI Capital Group Specialty Laboratories Telemundo Network Charles Schwab Steelcase Tri-Energy Productions (Getty Images) Christiensen, Miller Stonefield Josepheson United Talent Cohen & Brown Sun America Universal Music Component Research Group Sutro & Company Vanguard Records Dean Witter Times Mirror Publishing Virgin Records Donaldson, Lufkin & Jenrette Towers, Perrin Vision Entertainment Dreyfus U.S. Bancorp Fogel, Feldman Western Media

* Recent downsize or lease terminations

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Westside Tenant Base

The westside is the preferred executive housing location, and although office rental rates in these markets are above other areas of southern California, employee recruitment has become an important consideration, offsetting cost of occupancy concerns, in location decisions. For national firms in particular the westside Los Angeles rental rates are consistent or below rents for offices in other major US markets such as Chicago and New York.

The westside tenant base includes the entertainment industry and other "creative" professions such as advertising and architecture. The westside has also become a financial center for Los Angeles, and is a preferred location for law, accounting, and financial services firms. Although technology tenants have historically been well represented in the westside markets, this component of the market expanded during 1999-2000, particularly in the field of technology, eCommerce and "New Media". This category of tenant entered the westside market during 1999-2000, competing aggressively for available space. The westside market has a critical mass of creative marketing and technical talent, and a dynamic environment created by a variety of cutting edge firms in these business sectors. The "collapse" of the dot-com" market and several related technology firms during 2001 changed the dynamics of this component of the market. The influx of eCommerce or "dot-com" tenants in certain submarkets (such as portions of Santa Monica) resulted in the loss of several major tenants in this sector.

The chart on the previous page provides an overview of the components of the westside tenant base, including entertainment, technology, financial services, law, and corporate tenants.

WEST HOLLYWOOD SUBMARKET OVERVIEW

8560 Sunset's West Hollywood office market, with 16 office buildings totaling 1,376,888 square feet is one of the smallest submarkets in the larger Westside Los Angeles market area. The West Hollywood submarket is situated along the southerly base of the Santa Monica Mountains, immediately adjacent to the eastern boundary of Beverly Hills. Approximately 76 percent of the rentable office area in this market is concentrated in ten buildings along the Sunset Boulevard corridor of West Hollywood. These ten buildings, including 8560 Sunset, are summarized in the following pages, including relevant characteristics such as the building size, age, current availabilities and occupancy rates, and quoted rental rates.

Although the West Hollywood submarket has attracted a diverse tenant base, the entertainment industry represents the primary component of the tenant demand for buildings in this location. Smaller tenants from the film and recording industry have historically been attracted to this submarket, including talent agents and casting companies. There are also a number of smaller law tenants, as well as some dominant larger tenants. These tenants include residents of the adjacent residential areas of Beverly Hills and the hillside areas just south of Sunset Boulevard, and the retail and restaurant amenities in this

CUSHMAN & WAKEFIELD 27 MARKET ANALYSIS

location attract numerous entertainment industry clientele. Most of the Sunset Boulevard office buildings in this submarket offer smaller floorplates than other westside markets (excluding Beverly Hills), and the topography of the community provides outstanding views of westside Los Angeles to the south and west, and the hillside residential areas to the north. The Direct Vacancy & Weighted Average Rent - combination of a limited total office supply, the excellent West Hollywood retail/restaurant amenities, and a location near preferred "upscale" residential communities has created a desirable "boutique" office submarket in West Hollywood.

As shown on the previous statistical overview of the Westside Los Angeles market area, the West Hollywood submarket had a 2nd Quarter 2003 direct vacancy rate of 10.5 percent, with available space offered at a weighted average rental rate of $31.68 per-square-foot annually, full service gross. The chart to the left compares the 10.5 percent vacancy rate with historical vacancy levels for the West Hollywood submarket during the past 12 years (year- end figures).

Absorption Trends - West Hollywood The relatively small size of the West Hollywood submarket can result in greater fluctuations in the vacancy levels from year to year based on one or more significant tenants entering or leaving the market. The chart shows that while the decline in vacancy has been somewhat irregular since peaking at 21.8 percent in 1993, the pattern of steady absorption and no new supply has resulted in a reduction in vacancy to 4.2% in 2000. During the 2001-2002 downturn, West Hollywood experienced an increase in Direct Vacancy to 14.2%. Through the first half of 2003 West Hollywood has enjoyed positive absorption and a drop in vacancy rates to 10.5 percent. However, the Weighted Average Rents have stayed firm since 2000.

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SUNSET MILLENNIUM COMPETITIVE SUBSET

Sunset Millennium's main competition comes from seven other office projects located along Sunset Boulevard. The seven buildings that make up this subset total just under 1 million square feet and have a gross vacancy of 11.4%. Average rents per year range from $25.20 to $37.20 psf (Full Service Gross). Though the commercial office market of West Hollywood extends beyond Sunset Boulevard, tenants who are focused on locating to The Strip typically do not look elsewhere. The West Hollywood submarket attracts a diverse tenant base, however, the entertainment industry represents the primary component of the tenant demand for buildings in this location. Historically, tenants along The Strip include residents of the adjacent residential areas of Beverly Hills and the Sunset Hills to the north. The combination of limited office supply, the excellent retail/restaurant amenities, and a location near upscale residential communities has created a desirable "boutique" office market along The Strip.

8560 SUNSET COMPETITIVE LEASING NICHE

8560 Sunset is considered the best quality office building in the West Hollywood submarket. The Property's location and views are unsurpassed. The adjacent amenities and abundant parking provide office tenants with conveniences not found in many of the competitive properties. The smaller floor plates are well-suited to the smaller tenants in this submarket seeking a prestigious building. The recent renovation has elevated 8560 Sunset into the trophy class. No other competitive building enjoys all of these features.

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Competitive Westside Office Projects Building Information Overall Quoted Item Building Name / No. of Area Avg. Flr. Year Available Space (SF) Availability Annual Rent Occupancy Ratio No. Location Stories (SF) Area (SF) Built Direct Sublease (SF) PSF PSF Direct Overall

Property Sunset Millennium 10 70,639 7,200 1963 0 0 ------100.0% 89.8% 8560 W. Sunset Boulevard R-2001 0 7,207 Total $39.00 $42.00 0 7,207 7,207

1 Directors Guild of America 6 106,020 17,670 1988 0 0 ------96.8% 96.8% 7920 W. Sunset Boulevard 3,400 0 Total $28.80 $28.80 3,400 0 3,400

2 Piazza Del Sol 5 41,122 8,224 1927 0 0 ------100.0% 100.0% 8439 W. Sunset Boulevard R-1984 0 0 Total $30.00 $30.00 00 0

3 8730 W. Sunset Blvd 7 73,000 10,428 1954 0 0 ------83.6% 71.8% 8730 W. Sunset Boulevard R-1984 11,940 8,626 Total $37.20 $37.20 11,940 8,626 20,566

4 8800 W. Sunset Boulevard 7 70,877 10,125 1987 0 0 ------100.0% 100.0% 8800 W. Sunset Boulevard 0 0 Total $30.00 $30.00 00 0

5 9000 W. Sunset Boulevard 16 139,163 8,710 1964 0 0 ------96.2% 96.2% 9000 W. Sunset Boulevard 5,347 0 Total $34.20 $34.80 5,347 0 5,347

6 Luckman Plaza 13 232,476 17,883 1965 31,119 0 ------88.8% 88.8% 9200 / 9220 W. Sunset Blvd. 3 55,000 18,333 1968 1,173 0 Total $29.40 $31.80 287,476 32,292 0 32,292

7 Sunset Doheny East & West 9 93,086 10,343 1961 31,927 0 ------81.2% 80.4% 9229 / 9255 W. Sunset Blvd. 11 151,110 13,737 R-1992 13,898 2,017 Total $25.20 $27.60 244,196 45,825 2,017 47,842

Totals (including Property): 1,032,493 13,628 98,804 17,850 116,654 90.4% 88.7%

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CUSHMAN & WAKEFIELD 31

FINANCIAL ANALYSIS

INVESTMENT HIGHLIGHTS

„ The Property is 100% leased. „ Limited near-term lease expiration exposure provides a stable cash flow through 2006. „ The combined West Hollywood/Beverly Hills office market has and inventory of 6.8 million square feet making it the second largest office market in West Los Angeles. „ Due to recent capital upgrades, relatively new tenant improvements, and the institutional quality of ownership, low capital expenditures will be required in the near-term.

Expiration Schedule

Analysis Exhibits

The following items have been prepared in the underwriting of 8560 Sunset Boulevard. The Argus model is included with this Offering Memorandum. „ 10-Year Cash Flow „ Cash Flow Assumptions

The following exhibits are included in the Tenant Information section: „ Tenant Overviews „ Rent Roll as of September 2003 „ Building Stacking Plan

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10-YEAR CASH FLOW ANALYSIS

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CASH FLOW ASSUMPTIONS

Term of Analysis January 2004 - December 2014 Lag Vacancy All Leases 6 Months Building Square Footage 70,639 Weighted Average 2 Months Summary Occupied Total Tenant Improvements Office Office Space 64,848 64,848 100.0% New Tenants $10.00 Ground Floor Retail 5,791 5,791 100.0% Renewal Tenants $5.00 Total 70,639 70,639 100.0% Weighted-Average $6.50

CY 2004 Market Rental Rates Per SF/Year Office Tenants $31.80 FSG Leasing Commissions Years 1-5 Penthouse $42.00 FSG New Tenants 6.00% Ground Floor Tenant $92.00 NNN Renewal Tenants 3.00% Weighted-Average 3.90%

Absorption Market Growth Rates All Space Total Available SF 0 Rental Rates 3.0% Rooftop and Storage Income, Operating Expenses 3.0% Real Estate Taxes 2.0% CY 2004 Operating Expenses GENERAL BUILDING $5.12 Rent Increases (New Leases) UTILITIES $2.69 5 Year Leases Annual 3% MANAGEMENT $0.79 INSURANCE $1.00 REAL ESTATE TAXES $3.20 Lease Terms (New Leases) Total $12.80 All tenants 5 Years Miscellaneous - C&W assumes a management expense of 2.0% of Vacancy/Credit Loss * the effective gross income. Credit Loss 5.0% - Assume the buyer will contract for two roof top * May be greater due to lag vacancy. antennae by January 2005 at a rate of $100,000/year. - Real Estate Taxes have not been re-assessed assuming a sale. - Each buyer should adjust the real estate taxes based on their acquisition price. Current tax rate is 1.0994%. Capital Reserves $0.10 Per Square Foot - Please note that the tall walls and signage have been sold and are not part of this offering. Retention Ratio 70.0% - Central Parking Inc. has a 10-year master parking lease over all of the parking beneath 8560 and the adjoining retail project. The ownership of 8560 is not encumbered by any parking expenses or income. - Insurance cost is estimated by C&W. Each buyer should base their insurance expense on their own estimate.

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TENANT INFORMATION

SELECTED TENANT OVERVIEWS

Keller Williams - www.kw.com

Keller Williams Realty (KW), founded in 1983, is an international real estate company with more than 320 offices located across North America. Keller Williams is the fastest growing real estate company and is currently the 5th largest U.S. residential real estate firm in North America. Keller Williams began franchising its offices in 1991. Since 1996, KW has grown a remarkable 40% each year in agent numbers, earned commission, and profit sharing. In 2002, KW earned $530 million in gross commission sales system-wide and distributed $6 million to agents and administrative staff. The company has succeeded by treating its 23,000-plus franchisees and associates as partners, and shares its knowledge, policy control, and company profits on a system-wide basis. KW's agents are distinguished by their level of professional education, their full-time commitment to real estate sales, and their level of business success.

The Keller Williams Sunset office was the number one office launch in the history of the company, opening its doors with 63 agents in its first official month of business. The Sunset office closed in excess of $30 million in real estate transactions in its first month. The office continues to grow based on the foundations set forth by Keller Williams and the strength of the management team and core group of agents. Paul M. Morris, Chief Executive Officer, and his partner Edward E. Krifcher have guaranteed the lease.

Herman Miller - www.hermanmiller.com

Founded in 1923 and headquarted in Zeeland, Michigan, Herman Miller is the second largest office furniture manufacturer in the world. Herman Miller's stock is traded on the NASDAQ, and had net sales of $2.24 billion in 2001.

Herman Miller's products include: office furniture systems and accessories, freestanding furniture products for office and healthcare environments, office and institutional seating, small office, home office and residential furniture, and filing and storage products.

Herman Miller operates several U.S. subsidiaries: Geiger, with locations in Atlanta, Georgia, and Lake Mills, Wisconsin, specializes in the production of high-quality wood furniture for the corporate office; Herman Miller for Healthcare focuses on the needs of the health-care environment; and Herman Miller for the Home offers classic modern and home office design to consumers.

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USA Intertainment / Kopelson Entertainment - www.intertainment-ag.de

USA Intertainment is the wholly owned subsidiary of Intertainment AG, the publicly traded German movie distribution firm. Intertainment AG acquires the complete film rights from international sales agents, dubs the films into different languages and markets the rights and the licensing to individual distributors for theater, video and television.

In a move to capture a piece of the lucrative production side of the feature film industry, USA Intertainment forged a production partnership with Kopelson Entertainment in 1999. Kopelson Entertainment is the legendary production house founded by Arnold and Anne Kopelson, two of the most successful and prolific feature film producers of all time. Kopelson's films have received over 20 Academy Award nominations, and have grossed nearly two billion dollars in worldwide box office receipts. In 1986 Arnold Kopelson won the Best Picture Academy Award for Oliver Stone's "Platoon". Intertainment AG guaranteed the lease.

Creative Theme Restaurants - www.ctrisunset.com

Creative Theme Restaurants is the holding company for three of the most successful and recognizable restaurants and nightclubs in Los Angeles: Miyagi's, Saddle Ranch Chop House on the Sunset Strip, and Saddle Ranch Chop House at Universal Citywalk.

Founded by the trend-setting restauranteur, Larry Pollack, Creative Theme Restaurants has owned and operated no less than six of the most famous nightclubs and restaurants in Hollywood. Today, Mr. Pollack's three restaurants/nightclubs include: Miyagi's, a three-story, 17,500 square foot sushi restaurant that continues to be one of the hardest reservations in town, despite its large size; Saddle Ranch Chop House on the Sunset Strip and Saddle Ranch Chop House on Universal City Walk. These two "cowboy ranch" themed restaurants are each over 12,000 square feet, feature steaks and both have mechanical bulls.

CMG Worldwide, Inc. - www.cmgworldwide.com

CMG Worldwide is a marketing and talent agency with a client base among the most prestigious in the licensing industry. Headquartered in Indianapolis, Indiana with offices in West Hollywood and Rio de Janeiro, CMG Worldwide was founded in 1973 by Mark Roesler and has now grown to be the premier company for representing the families and estates of deceased celebrities. Today, CMG Worldwide represents over 200 diverse personalities and corporate clients in the sports, entertainment, and music fields such as: Marilyn Monroe, Babe Ruth, Elvis Presley and Frank Lloyd Wright.

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RENT ROLL - SEPTEMBER 2003

Square Start Expiration Monthly Annual Rent Step Base Suite Tenant Name Feet Date Date Base Rent Rent PSF Date Amount Year Comments

Floor 1 AP-MM WSR, LLC 5,791 11/01/03 10/31/06 $44,243 $91.68 11/01/04 $45,112 NNN Assume tenant vacates 11/01/05 $46,038 when lease expires. Floor 2 AP-MM WSR, LLC 7,217 11/01/03 10/31/08 $19,269 $32.04 11/01/04 $19,630 2003 11/01/05 $19,991 11/01/06 $20,424 11/01/07 $20,857 Floor 3 Keller Williams 7,210 12/01/03 11/31/08 $18,025 $30.00 12/1/2004 $18,386 2004 Months 8,11, 43, and 44 of 12/1/2005 $18,746 the Lease Term are abated. 12/1/2006 $19,107 Tenant has Prop. 13 12/1/2007 $19,467 protection.Tenant has one, 5-year option at market. Floor 4 Keller Williams 7,210 12/01/03 11/31/08 $18,025 $30.00 12/1/2004 $18,386 2004 Months 8,11, 43, and 44 of 12/1/2005 $18,746 the Lease Term are abated. 12/1/2006 $19,107 Tenant has Prop. 13 12/1/2007 $19,467 protection. Tenant has one, 5-year option at market. Floor 5 Herman Miller 7,210 12/01/03 11/31/08 $17,592 $29.28 12/1/2004 $18,386 2004 Months 2-5 are free. 12/1/2005 $19,107 Tenant has one, 5-year 12/1/2006 $19,828 option. Floor 6 USA Intertainment 7,233 10/01/01 09/30/06 $24,726 $41.02 10/01/03 Annual 4% 2001 Tenant has one, 5-year option at market. Floor 7 USA Intertainment 7,213 10/01/01 09/30/06 $24,658 $41.02 10/01/03 Annual 4% 2001 Tenant has one, 5-year option at market. Floor 8 USA Intertainment 7,207 10/01/01 09/30/06 $24,638 $41.02 10/01/03 Annual 4% 2001 Tenant has one, 5-year option at market. Tenant is marketing this space for sublease. Floor 9 Creative Theme Rest. 7,181 12/15/01 12/31/11 $24,155 $40.36 12/02/03 Annual 3.5% 2002 Tenant has one, 5-year option at market. Floor 10 CMG 7,167 08/25/01 08/31/06 $25,099 $42.02 09/01/03 Annual 3% 2001 Tenant pays an additional $4,120.75/month for TI cost. Tenant has one, 5-year option at market. Total 70,639 $240,431 SF % Occupied Square Feet 70,639 100.0% Available Square Feet 0 0.0% Total Square Feet 70,639 100.0%

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BUILDING STACKING PLAN

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