Market Leasing Assumptions Tenant Information

Building Square Footage 125,000 Tenant 1 Dirty Dancing Fanclub

President Mike Daugard
Analysis Start Date 6/1/2010 Lease Square Footage 25,000
Lease/Rent Commencement 6/1/2010
2010 Market Rent Lease Term 5 Years
<50,000 square feet $ 26.00 NNN Rent $ 25.00
>50,000 square feet $ 23.00 NNN Reimbursement Method NNN
Rental Escalations 2.5%
New/Renewal Lease Term 5 years

Annual Growth Rates Tenant 2 Target Corporation

Market Rent Growth 3% Lease Square Footage 100,000
Operating Expense Growth Rate CPI Lease/Rent Commencement 6/1/2010
Tenant Improvement Growth Rate CPI Lease Term 10 Years
Rent $ 22.00
Vacancy Rate 5% EGI Reimbursement Method NNN
Rental Escalations 2.5%
Operating Expenses $/PSF
Utilities $ 2.50
Cleaning $ 0.75
Repairs & Maintenance $ 1.50 Market Leverage
Security $ 0.10
Snow Removal $ 0.15 Loan To Value (LTV) 65%
General & Administrative $ 1.50 Interest Rate 7.50%
Management Fee $ 0.50 Amortization Period (months) 360
Insurance $ 0.10 Loan Term (months) 120
Real Estate Taxes $ 2.25
TOTAL $ 9.35

Downtime Period
New 9 months
Renewal 0 months

2010 Tenant Improvement Allowance

New $ 35.00
Renewal $ 10.00

Leasing Commissions
New 5.5%
Renewal 3.5%
Target Rent
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Market Rent $ 23.00 $ 23.69 $ 24.40 $ 25.13 $ 25.89 $ 26.66
PSF $ 22.00 $ 22.55 $ 23.11 $ 23.69 $ 24.28 $ 24.89
Monthly $ 183,333 $ 187,917 $ 192,615 $ 197,430 $ 202,366 $ 207,425
Annually $2,200,000 $2,255,000 $2,311,375 $2,369,159 $2,428,388 $2,489,098

Daugard Rent
Year 1 Year 2 Year 3 Year 4 Year 5
Year 6
Market Rent $ 26.00 $ 26.78 $ 27.58 $ 28.41 $ $29.26
30.14
PSF $ 25.00 $ 25.63 $ 26.27 $ 26.92 $ $27.60
30.14
Monthly $ 52,083 $ 53,385 $ 54,720 $ 56,088 $ 57,490
$ 62,794
Annually $ 625,000 $ 640,625 $ 656,641 $ 673,057 $ 689,883
$ 753,528
Less: Commission $ 138,628
Less: TI $289,818.52
Total Rent $2,825,000 $2,895,625 $2,968,016 $3,042,216 $3,118,271 $2,814,180

TI Increase @ $10 $10.00 $10.30 $10.61 $10.93 $11.26 $11.59

TI Increase @ $35 $35.00 $36.05 $37.13 $38.25 $39.39 $40.57
 Year 7 Year 8 Year 9 Year 10
$ 27.46 $ 28.29 $ 29.14 $ 30.01
$ 25.51 $ 26.15 $ 26.80 $ 27.47
$ 212,610 $ 217,926 $ 223,374 $ 228,958
$2,551,326 $2,615,109 $2,680,486 $2,747,499

Year 7 Year 8 Year 9 Year 10

$ 31.05 $ 31.98 $ 32.94 $ 33.92
$ 30.89 $ 31.67 $ 32.46 $ 33.27
$ 64,364 $ 65,973 $ 67,622 $ 69,313
$ 772,366 $ 791,676 $ 811,467 $ 831,754

$3,323,692 $3,406,784 $3,491,954 $3,579,253

$11.94 $12.30 $12.67 $13.05

$41.79 $43.05 $44.34 $45.67
 Existing Building An
Cash Flow Acquisition Year
0 1
Revenue
Potential Gross Rent $ 2,825,000
Reimbursements $ 1,168,750
Total Revenue $ 3,993,750

Vacancy $ 199,688

Effective Gross Income (EGI) $ 3,794,063

Expenses
OPEX $ 887,500
RE Taxes $ 281,250
Total Expenses $ 1,168,750

Net Operating Income (NOI) $ 2,625,313

Cap Rate 9.00% 9.25% 9.50%

Purchase Price $ 29,170,139 $ 28,381,757 $ 27,634,868

Acquisition Year
Unleveraged IRR - 6 Year Hold 0 1
Cash Flow $(28,916,256) $ 2,625,313
Reversion Amount
Total Cash Flow $(28,916,256) $ 2,625,313

PV @ 11% $28,916,256 231.33005129 PSF

PV @ 12% $ 27,678,432
Cap Rate @ 12% 9.49%

Leveraged IRR - 6 Year Hold

LTV 65.00%
Loan Amount $ 18,795,567
Interest Rate 7.50%
Amortization 30 Year
Annual Payments $ 1,577,056

Acquisition Year
0 1
Purchase Price ($28,916,256)
Loan Amount $18,795,567
NOI $2,625,313
Cash Flow $2,625,313
Debt Service $1,577,056
Cash Flow After Debt Service ($10,120,690) $1,048,257
Reversion Amount
Loan Repayment
($10,120,690) $1,048,257

Leveraged IRR 16.59%

Equity Dividend Rate/C-on-C 10.36%

DSC Ratio 1.66

isting Building Analysis- 6 Year Hold
Year Year Year Year Year Year
2 3 4 5 6 7

$ 2,895,625 $ 2,968,016 $ 3,042,216 $ 3,118,271 $ 2,814,180 $ 3,323,692

$ 1,203,813 $ 1,239,927 $ 1,277,125 $ 1,315,438 $ 1,354,902 $ 1,395,549
$ 4,099,438 $ 4,207,943 $ 4,319,341 $ 4,433,710 $ 4,169,082 $ 4,719,240

$ 204,972 $ 210,397 $ 215,967 $ 221,685 $ 208,454 $ 235,962

$ 3,894,466 $ 3,997,545 $ 4,103,374 $ 4,212,024 $ 3,960,627 $ 4,483,278

$ 914,125 $ 941,549 $ 969,795 $ 998,889 $ 1,028,856 $ 1,059,721

$ 289,688 $ 298,378 $ 307,329 $ 316,549 $ 326,046 $ 335,827
$ 1,203,813 $ 1,239,927 $ 1,277,125 $ 1,315,438 $ 1,354,902 $ 1,395,549

$ 2,690,653 $ 2,757,619 $ 2,826,249 $ 2,896,586 $ 2,605,726 $ 3,087,730

9.08%
$ 28,916,256

Year Year Year Year Year

2 3 4 5 6
$ 2,690,653 $ 2,757,619 $ 2,826,249 $ 2,896,586 $ 2,605,726
###
$ 2,690,653 $ 2,757,619 $ 2,826,249 $ 2,896,586 $ 35,108,145

Year Year Year Year Year

2 3 4 5 6

$2,690,653 $2,757,619 $2,826,249 $2,896,586 $2,605,726

$2,690,653 $2,757,619 $2,826,249 $2,896,586 $2,605,726
$1,577,056 $1,577,056 $1,577,056 $1,577,056 $1,577,056
$1,113,597 $1,180,563 $1,249,193 $1,319,530 $1,028,670
$32,502,419
($17,532,080)
$1,113,597 $1,180,563 $1,249,193 $1,319,530 $15,999,010
 Year Year Year Year
8 9 10 11

$ 3,406,784 $ 3,491,954 $ 3,579,253 $ -

$ 1,437,415 $ 1,480,538 $ 1,524,954 $ 1,570,702
$ 4,844,199 $ 4,972,491 $ 5,104,206 $ 5,257,332

$ 242,210 $ 248,625 $ 255,210 $ 262,867

$ 4,601,989 $ 4,723,867 $ 4,848,996 $ 4,994,466

$ 1,091,513 $ 1,124,258 $ 1,157,986 $ 1,192,726

$ 345,902 $ 356,279 $ 366,967 $ 377,976
$ 1,437,415 $ 1,480,538 $ 1,524,954 $ 1,570,702

$ 3,164,574 $ 3,243,329 $ 3,324,042 $ 3,423,764

General Building Assumptions
Building Size 100,000 sf
Market Rent $ 35.00 NNN
CPI Escalations 3%
Vacancy Rate 4%
Expenses OPEX $ 12 psf
RE Taxes $ 6 psf

Lease Information
Tenant Law Firm
Square Footage 100,000 sf
Term 10 Years
Rent $ 30.00 NNN
Rent Escalations 3%
Pro Rata Share of Expenses 100%
Tenant Improvements $ 50.00 psf
Leasing Commissions $ 750,000

Cash Flow
Year 0 Year 1 Year 2 Year 3
Revenue
Potential Gross Rent $ 3,000,000 $ 3,090,000 $ 3,182,700
Reimbursements $ 1,800,000 $ 1,854,000 $ 1,909,620
Total Revenue $ 4,800,000 $ 4,944,000 $ 5,092,320

Vacancy $ (192,000) $ (197,760) $ (203,693)

Effective Gross Income (EGI) $ 4,608,000 $ 4,746,240 $ 4,888,627

Expenses
OPEX $ 1,200,000 $ 1,236,000 $ 1,273,080
RE Taxes $ 600,000 $ 618,000 $ 636,540
Total Expenses $ 1,800,000 $ 1,854,000 $ 1,909,620

Net Operating Income (NOI) $ 2,808,000 $ 2,892,240 $ 2,979,007

Cap Rate 7.00% 7.25% 7.50%

Purchase Price 40,114,286 38,731,034 37,440,000

Unleveraged IRR - 6 Year Hold Year 0 Year 1 Year 2 Year 3

$ (40,114,286) $ 2,808,000 $ 2,892,240 $ 2,979,007

$ (40,114,286) $ 2,808,000 $ 2,892,240 $ 2,979,007

IRR 9.01%

Leveraged IRR - 6 Year Hold

LTV 75%
Loan Amount $ 30,085,714
Interest Rate 6.0%
Amortization Interest Only
Annual Payments $ 1,805,143

Year 0 Year 1 Year 2 Year 3

Purchase Price $ (40,114,286)
Loan Amount $ 30,085,714
NOI $ 2,808,000 $ 2,892,240 $ 2,979,007
Cash Flow $ 2,808,000 $ 2,892,240 $ 2,979,007
Debt Service $ (1,805,143) $ (1,805,143) $ (1,805,143)
Cash Flow After Debt Service $ (10,028,571) $ 1,002,857 $ 1,087,097 $ 1,173,864

$ (10,028,571) $ 1,002,857 $ 1,087,097 $ 1,173,864

IRR 16.79%

Equity Dividend Rate/C-on-C 10.00%

DSC Ratio 1.56

 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

$ 3,278,181 $ 3,376,526 $ 3,477,822 $ 3,582,157 $ 3,689,622 $ 3,800,310 $ 3,914,320

$ 1,966,909 $ 2,025,916 $ 2,086,693 $ 2,149,294 $ 2,213,773 $ 2,280,186 $ 2,348,592
$ 5,245,090 $ 5,402,442 $ 5,564,516 $ 5,731,451 $ 5,903,395 $ 6,080,496 $ 6,262,911

$ (209,804) $ (216,098) $ (222,581) $ (229,258) $ (236,136) $ (243,220) $ (250,516)

$ 5,035,286 $ 5,186,345 $ 5,341,935 $ 5,502,193 $ 5,667,259 $ 5,837,277 $ 6,012,395

$ 1,311,272 $ 1,350,611 $ 1,391,129 $ 1,432,863 $ 1,475,849 $ 1,520,124 $ 1,565,728

$ 655,636 $ 675,305 $ 695,564 $ 716,431 $ 737,924 $ 760,062 $ 782,864
$ 1,966,909 $ 2,025,916 $ 2,086,693 $ 2,149,294 $ 2,213,773 $ 2,280,186 $ 2,348,592

$ 3,068,377 $ 3,160,429 $ 3,255,242 $ 3,352,899 $ 3,453,486 $ 3,557,090 $ 3,663,803

Year 4 Year 5 Year 6

$ 3,068,377 $ 3,160,429 $ 3,255,242
$ 44,705,318 Reversion Amount
$ 3,068,377 $ 3,160,429 $ 47,960,560
 Year 4 Year 5 Year 6

$ 3,068,377 $ 3,160,429 $ 3,255,242

$ 3,068,377 $ 3,160,429 $ 3,255,242
$ (1,805,143) $ (1,805,143) $ (1,805,143)
$ 1,263,235 $ 1,355,286 $ 1,450,099
$ 44,705,318 Reversion Amount
### Loan Repayment
$ 1,263,235 $ 1,355,286 $ 16,069,702
 Assumptions
Loan Amt ###
Interest rate 7.50%
Term 10
Amortization Peri 30
Mnthly Pmt $131,421.33

Month Beg. Loan Balanc Monthly Pmt. Interest Principal Ending Loan Balance
1 $18,795,566.67 $ 131,421.33 ### $13,949.04 ###
2 $18,781,617.63 $ 131,421.33 ### $14,036.22 ###
3 $18,767,581.41 $ 131,421.33 ### $14,123.95 ###
4 $18,753,457.47 $ 131,421.33 ### $14,212.22 ###
5 $18,739,245.25 $ 131,421.33 ### $14,301.05 ###
6 $18,724,944.20 $ 131,421.33 ### $14,390.43 ###
7 $18,710,553.77 $ 131,421.33 ### $14,480.37 ###
8 $18,696,073.40 $ 131,421.33 ### $14,570.87 ###
9 $18,681,502.53 $ 131,421.33 ### $14,661.94 ###
10 $18,666,840.59 $ 131,421.33 ### $14,753.58 ###
11 $18,652,087.02 $ 131,421.33 ### $14,845.79 ###
12 $18,637,241.23 $ 131,421.33 ### $14,938.57 ###
13 $18,622,302.66 $ 131,421.33 ### $15,031.94 ###
14 $18,607,270.73 $ 131,421.33 ### $15,125.89 ###
15 $18,592,144.84 $ 131,421.33 ### $15,220.42 ###
16 $18,576,924.41 $ 131,421.33 ### $15,315.55 ###
17 $18,561,608.86 $ 131,421.33 ### $15,411.27 ###
18 $18,546,197.59 $ 131,421.33 ### $15,507.59 ###
19 $18,530,690.00 $ 131,421.33 ### $15,604.52 ###
20 $18,515,085.48 $ 131,421.33 ### $15,702.04 ###
21 $18,499,383.43 $ 131,421.33 ### $15,800.18 ###
22 $18,483,583.25 $ 131,421.33 ### $15,898.93 ###
23 $18,467,684.32 $ 131,421.33 ### $15,998.30 ###
24 $18,451,686.02 $ 131,421.33 ### $16,098.29 ###
25 $18,435,587.72 $ 131,421.33 ### $16,198.91 ###
26 $18,419,388.82 $ 131,421.33 ### $16,300.15 ###
27 $18,403,088.67 $ 131,421.33 ### $16,402.02 ###
28 $18,386,686.64 $ 131,421.33 ### $16,504.54 ###
29 $18,370,182.11 $ 131,421.33 ### $16,607.69 ###
30 $18,353,574.42 $ 131,421.33 ### $16,711.49 ###
31 $18,336,862.93 $ 131,421.33 ### $16,815.94 ###
32 $18,320,046.99 $ 131,421.33 ### $16,921.04 ###
33 $18,303,125.96 $ 131,421.33 ### $17,026.79 ###
34 $18,286,099.16 $ 131,421.33 ### $17,133.21 ###
35 $18,268,965.95 $ 131,421.33 ### $17,240.29 ###
36 $18,251,725.66 $ 131,421.33 ### $17,348.04 ###
37 $18,234,377.62 $ 131,421.33 ### $17,456.47 ###
38 $18,216,921.15 $ 131,421.33 ### $17,565.57 ###
39 $18,199,355.58 $ 131,421.33 ### $17,675.36 ###
40 $18,181,680.22 $ 131,421.33 ### $17,785.83 ###
41 $18,163,894.39 $ 131,421.33 ### $17,896.99 ###
42 $18,145,997.40 $ 131,421.33 ### $18,008.85 ###
43 $18,127,988.56 $ 131,421.33 ### $18,121.40 ###
44 $18,109,867.16 $ 131,421.33 ### $18,234.66 ###
45 $18,091,632.50 $ 131,421.33 ### $18,348.63 ###
46 $18,073,283.87 $ 131,421.33 ### $18,463.30 ###
47 $18,054,820.57 $ 131,421.33 ### $18,578.70 ###
48 $18,036,241.87 $ 131,421.33 ### $18,694.82 ###
49 $18,017,547.05 $ 131,421.33 ### $18,811.66 ###
50 $17,998,735.39 $ 131,421.33 ### $18,929.23 ###
51 $17,979,806.16 $ 131,421.33 ### $19,047.54 ###
52 $17,960,758.62 $ 131,421.33 ### $19,166.59 ###
53 $17,941,592.03 $ 131,421.33 ### $19,286.38 ###
54 $17,922,305.65 $ 131,421.33 ### $19,406.92 ###
55 $17,902,898.73 $ 131,421.33 ### $19,528.21 ###
56 $17,883,370.52 $ 131,421.33 ### $19,650.26 ###
57 $17,863,720.26 $ 131,421.33 ### $19,773.08 ###
58 $17,843,947.18 $ 131,421.33 ### $19,896.66 ###
59 $17,824,050.52 $ 131,421.33 ### $20,021.01 ###
60 $17,804,029.51 $ 131,421.33 ### $20,146.14 ###
61 $17,783,883.36 $ 131,421.33 ### $20,272.06 ###
62 $17,763,611.30 $ 131,421.33 ### $20,398.76 ###
63 $17,743,212.54 $ 131,421.33 ### $20,526.25 ###
64 $17,722,686.29 $ 131,421.33 ### $20,654.54 ###
65 $17,702,031.75 $ 131,421.33 ### $20,783.63 ###
66 $17,681,248.12 $ 131,421.33 ### $20,913.53 ###
67 $17,660,334.59 $ 131,421.33 ### $21,044.24 ###
68 $17,639,290.36 $ 131,421.33 ### $21,175.76 ###
69 $17,618,114.59 $ 131,421.33 ### $21,308.11 ###
70 $17,596,806.48 $ 131,421.33 ### $21,441.29 ###
71 $17,575,365.19 $ 131,421.33 ### $21,575.30 ###
72 $17,553,789.89 $ 131,421.33 ### $21,710.14 ###