<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
Date of Report: August 12, 1997
- ----------------------------
(Date of earliest event reported)
GS Mortgage Securities Corporation II
(Exact name of registrant as specified in its charter)
Delaware 33-99774-02 22-3442024
- -------------------------------------------------------------------------------
(State or Other (Commission (I.R.S. Employer
Jurisdiction of File Number) Identification No.)
Incorporation
85 Broad Street, New York, N.Y. 10004
- -------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (212) 902-1000
<PAGE>
ITEM 5. OTHER EVENTS.
Attached as an exhibit to this Amendment to the Registrant's
Current Report on Form 8-K filed July 22, 1997 (the "Form 8-K") are certain
supplemental pages to the property appraisal related to (a) the Esplanade
Shopping Mall Appraisal, filed as Exhibit 99.30 to the Form 8-K, (b) the
Montehiedra Town Center Appraisal, filed as Exhibit 99.36 to the Form 8-K,
(c) the Arboretum VI and VII Appraisal, filed as Exhibit 99.3 to the Form
8-K, (d) the Plaza 1900 Appraisal, filed as Exhibit 99.20 to the Form 8-K,
(e) the Golden East Crossing Appraisal, filed as Exhibit 99.11 to the Form
8-K, (f) the Oakwood Center Appraisal, filed as Exhibit 99.18 to the Form
8-K, (g) the 1760 Market Street Appraisal, filed as Exhibit 99.1 to the
Form 8-K, (h) the 1511-1515 Third Avenue Appraisal, filed as Exhibit 99.25
to the Form 8-K, (i) the Sun Buildings Appraisal, filed as Exhibit 99.23 to
the Form 8-K, (j) the Greenwood Corporate Center Appraisal, filed as Exhibit
99.32 to the Form 8-K, (k) the Westpark Corporate Center Appraisal, filed as
Exhibit 99.26 to the Form 8-K, (l) the Northpark Mall Appraisal, filed as
Exhibit 99.16 to the Form 8-K, (m) the San Valente Building Appraisal, filed
as Exhibit 99.21 to the Form 8-K, (n) the Dover Mall and Commons Appraisal,
filed as Exhibit 99.28 to the Form 8-K, (o) the One Northwest Center
Appraisal, filed as Exhibit 99.19 to the Form 8-K, (p) the Galleria at
White Plains Appraisal, filed as Exhibit 99.31 to the Form 8-K and (q) the
Century Plaza Appraisal, filed as Exhibit 99.7 to the Form 8-K.
The Certificates will be offered pursuant to a Prospectus
and related Prospectus Supplement (together, the "Prospectus"), which will be
filed with the Commission pursuant to Rule 424 under the Securities Act of
1933, as amended (the "Act"). The offer and sale contemplated by the Prospectus
of the Certificates will be registered pursuant to the Act under the
Registrant's Registration Statement on Form S-3 (No. 333-27083) (the
"Registration Statement").
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibits
Item 601(a) of Regulation
S-K Exhibit No. Description
------------------------- -----------
99.1 Supplemental Pages to the Esplanade
Shopping Mall Appraisal
99.2 Supplemental Pages to the Montehiedra
Town Center Appraisal
99.3 Supplemental Pages to the Arboretum VI
and VII Appraisal
99.4 Supplemental Pages to the Plaza 1900
Appraisal
99.5 Supplemental Pages to the Golden East
Crossing Appraisal
99.6 Supplemental Pages to the Oakwood
Center Appraisal
99.7 Supplemental Pages to the 1760 Market
Street Appraisal
99.8 Supplemental Pages to the 1511-1515
Third Avenue Appraisal
99.9 Supplemental Pages to the Sun Buildings
Appraisal
99.10 Supplemental Pages to the Greenwood
Corporate Center Appraisal
99.11 Supplemental Pages to the Westpark
Corporate Center Appraisal
99.12 Supplemental Pages to the Northpark
Mall Appraisal
99.13 Supplemental Pages to the San Valente
Building Appraisal
99.14 Supplemental Pages to the Dover Mall and
Commons Appraisal
99.15 Supplemental Pages to the One Northwest
Center Appraisal
99.16 Supplemental Pages to the Galleria at
White Plains Appraisal
99.17 Supplemental Pages to the Century Plaza
Appraisal
<PAGE>
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed on behalf of
the Registrant by the undersigned thereunto duly authorized.
GS MORTGAGE SECURITIES CORPORATION II
By: /s/ Sheridan Schechner
-----------------------------------------
Name: Sheridan Schechner
Title: Managing Director
Date: August 12, 1997
<PAGE>
[GRAPHIC OMITTED]
[Location Map]
<PAGE>
================================================================================
CIVILIAN LABOR FORCE GROWTH
NEW ORLEANS MSA
- --------------------------------------------------------------------------------
Cvilian Percent Unemployed
Labor ---------------------------------
Year Force Employed Unemployed MSA LA US
- --------------------------------------------------------------------------------
1990 589,000 555,900 33,100 5.60% 6.20% 5.50%
1991 605,000 568,500 36,500 6.00% 7.10% 6.70%
1992 604,700 562,900 41,800 6.90% 8.10% 7.40%
1993 587,300 547,100 40,200 6.80% 7.40% 6.80%
1994 601,000 556,400 44,600 7.40% 8.00% 6.10%
1995 * 613,000 572,000 41,000 6.70% n/a n/a
================================================================================
* Based upon employment through September 1995
<PAGE>
[GRAPHIC OMITTED]
[City Map]
<PAGE>
[GRAPHIC OMITTED]
[Leasing Plan]
THE ESPLANADE
Upper Level Plan
<PAGE>
[GRAPHIC OMITTED]
[Leasing Plan]
THE ESPLANADE
Lower Level Plan
<PAGE>
[GRAPHIC OMITTED]
[Location Map]
<PAGE>
<TABLE>
<CAPTION>
===================================================================================================================================
ANNUAL CASH FLOW REPORT
THE ESPLANADE (KENNER, LA)
Cushman & Wakefield, Inc.
===================================================================================================================================
FY1997 FY1998 FY1999 FY2000 FY2001 FY2002 FY2003 FY2004
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Minimum Rent
Mall Tenants 6,496,140 7,229,476 7,888,677 8,394,166 8,457,568 8,697,760 8,947,733 9,153,574
Food Court Tenants 382,997 398,686 418,425 432,358 454,300 465,382 471,192 463,909
Anchor Tenants 174,750 174,750 174,750 174,750 174,750 174,750 174,750 174,750
- -----------------------------------------------------------------------------------------------------------------------------------
Total Minimum Rent 7,053,887 7,802,912 8,481,852 9,001,274 9,086,618 9,337,892 9,593,675 9,792,233
Recoveries
Cam-Mall Shops 2,102,143 2,316,798 2,492,573 2,666,375 2,711,221 2,834,264 2,925,415 3,021,235
Tax-Mall Shops 454,360 499,419 535,605 569,920 579,674 603,796 621,837 640,732
Hvc-Hvac Income 1,525,145 1,701,184 1,884,148 2,038,440 2,068,246 2,130,065 2,174,051 2,195,375
Fct-Food Court 80,050 84,148 84,714 86,684 93,984 99,283 102,757 103,314
Cam-Anchor Tenants 309,044 309,044 309,044 309,044 309,044 309,044 309,044 309,044
- -----------------------------------------------------------------------------------------------------------------------------------
Total Recoveries 4,470,742 4,910,593 5,306,084 5,670,463 5,762,169 5,976,452 6,133,104 6,269,700
Overage Rent 244,662 216,587 220,014 212,560 159,974 157,314 104,474 103,137
Other Income
Temporary Income 253,125 260,719 268,540 276,597 284,894 293,441 302,244 311,312
Miscellaneous 25,313 26,072 26,854 27,660 28,489 29,344 30,224 31,131
Potential Gross Income 12,047,729 13,216,883 14,303,344 15,188,554 15,322,144 15,794,443 16,163,721 16,507,513
Credit Loss (353,078) (500,331) (997,826) (1,488,428) (1,500,878) (1,547,172) (1,583,127) (1,616,507)
- -----------------------------------------------------------------------------------------------------------------------------------
Effective Gross Income 11,694,651 12,716,552 13,305,518 13,700,126 13,821,266 14,247,271 14,580,594 14,891,006
Operating Expenses
Common Area Maint. 2,252,375 2,331,208 2,412,801 2,497,249 2,584,652 2,675,115 2,768,744 2,865,650
Real Estate Taxes 507,292 525,047 543,424 562,443 582,129 602,503 623,591 645,417
Utilities 1,004,438 1,039,593 1,075,979 1,113,638 1,152,615 1,192,957 1,234,710 1,277,925
Contract Services 91,313 94,508 97,816 101,240 104,783 108,451 112,246 116,175
Food Court Expense 55,802 57,755 59,777 61,869 64,034 66,275 68,595 70,996
General & Admin. 185,669 192,167 198,893 205,854 213,059 220,516 228,234 236,223
Marketing Expense 91,313 94,508 97,816 101,240 104,783 108,451 112,246 116,175
Miscellaneous 37,032 38,328 39,670 41,058 42,495 43,983 45,522 47,115
Management Fee 218,956 240,585 261,056 276,416 277,398 284,857 290,945 296,861
- -----------------------------------------------------------------------------------------------------------------------------------
Total Expenses 4,444,190 4,613,699 4,787,232 4,961,007 5,125,948 5,303,108 5,484,833 5,672,537
Net Operating Income 7,250,461 8,102,853 8,518,286 8,739,119 8,695,318 8,944,163 9,095,761 9,218,469
Commissions 82,605 74,879 72,334 41,891 84,101 38,852 42,067 59,642
Capital Imprvmnts 82,603 85,494 88,486 91,583 94,789 98,106 101,540 105,094
Alterations 232,065 167,277 166,005 110,883 208,233 86,263 96,331 141,709
- -----------------------------------------------------------------------------------------------------------------------------------
Net Cash Flow 6,853,188 7,775,203 8,191,461 8,494,762 8,308,195 8,720,942 8,855,823 8,912,024
===================================================================================================================================
</TABLE>
===============================================================================
ANNUAL CASH FLOW REPORT
THE ESPLANADE (KENNER, LA)
Cushman & Wakefield, Inc.
===============================================================================
FY2005 FY2006 FY2007
Minimum Rent
Mall Tenants 9,332,796 9,381,999 9,665,556
Food Court Tenants 484,590 477,737 490,566
Anchor Tenants 174,750 174,750 174,750
- -------------------------------------------------------------------------------
Total Minimum Rent 9,992,136 10,034,486 10,330,872
Recoveries
Cam-Mall Shops 3,151,877 3,249,050 3,396,405
Tax-Mall Shops 663,217 676,694 704,116
Hvc-Hvac Income 2,227,887 2,249,420 2,235,760
Fct-Food Court 110,077 110,795 116,091
Cam-Anchor Tenants 309,044 309,043 309,044
- -------------------------------------------------------------------------------
Total Recoveries 6,462,102 6,595,002 6,761,416
Overage Rent 95,580 90,277 85,757
Other Income
Temporary Income 320,651 330,271 340,179
Miscellaneous 32,065 33,027 34,018
Potential Gross Income 16,902,534 17,083,063 17,552,242
Credit Loss (1,654,982) (1,671,980) (1,717,803)
- -------------------------------------------------------------------------------
Effective Gross Income 15,247,552 15,411,083 15,834,439
Operating Expenses
Common Area Maint. 2,965,948 3,069,756 3,177,198
Real Estate Taxes 668,006 691,386 715,585
Utilities 1,322,653 1,368,946 1,416,859
Contract Services 120,241 124,450 128,805
Food Court Expense 73,481 76,053 78,714
General & Admin. 244,490 253,047 261,904
Marketing Expense 120,241 124,450 128,805
Miscellaneous 48,764 50,471 52,238
Management Fee 302,631 303,743 312,498
- -------------------------------------------------------------------------------
Total Expenses 5,866,455 6,062,302 6,272,606
Net Operating Income 9,381,097 9,348,781 9,561,833
Commissions 60,236 158,890 114,928
Capital Imprvmnts 108,772 112,579 116,520
Alterations 147,585 365,540 264,877
- -------------------------------------------------------------------------------
Net Cash Flow 9,064,504 8,711,772 9,065,508
===============================================================================
<PAGE>
========================================================
Suite Square Quarterly
# Feet Lease-up Absorp.
--------------------------------------------------------
7 116 VACANT 851 Oct-96
11 210 VACANT 4,489 Oct-96 5,340
21 241-05 VACANT 904 Jan-97
22 301 VACANT 464 Jan-97
36 416 VACANT 2,082 Jan-97
51 614-03 VACANT 620 Jan-97
52 615-01 VACANT 1,450 Jan-97 5,520
31 324-05 VACANT 5,868 Apr-97 5,868
37 418 VACANT 3,014 Jul-97
54 617 VACANT 803 Jul-97
132 2010-06 VACANT 1,729 Jul-97 5,546
45 604 VACANT 3,550 Oct-97
53 616 VACANT 414 Oct-97
55 618 VACANT 362 Oct-97
66 804 VACANT 889 Oct-97
67 806 VACANT 285 Oct-97 5,500
59 708 VACANT 3,051 Jan-98
88 1004-04 VACANT 2,581 Jan-98 5,632
78 824 VACANT 711 Apr-98
87 1003 VACANT 1,320 Apr-98
93 1014 VACANT 2,442 Apr-98
98 1106 VACANT 133 Apr-98
120 1620 VACANT 769 Apr-98 5,375
100 1204 VACANT 442 Jul-98
106 1216 VACANT 2,064 Jul-98
65 802 VACANT 1,454 Jul-98
115 1422 VACANT 1,841 Jul-98 5,801
117 1604-06 VACANT 4,489 Oct-98
124 1710-02 VACANT 1,399 Oct-98 5,888
123 1708 VACANT 4,496 Jan-99
126 1718 VACANT 1,228 Jan-99 5,724
129 2004 VACANT 2,616 Apr-99
147 2216 VACANT 1,917 Jul-98
142 2114 VACANT 933 Apr-99 5,466
138 2102-05 VACANT 4,149 Jul-99
143 2116 VACANT 1,340 Jul-99 5,489
-------------------------------------------------------
Total 67,149
Quarterly Absorption 5,596
========================================================
[GRAPHIC OMMITED]
[Bar Chart]
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
COMMON AREA MAINTENANCE EXPENSE COMPARABLES
Cushman & Wakefield, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Budget Year No. Total Shop Budgeted Expense
No. Area Location State Year Built Stories GLA GLA CAM Expense Per Sq/Ft Location
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 Saratoga County MSA NY 1995 1990/91/93 1 656,501 256,668 $1,900,000 $7.40 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
2 Syracuse MSA NY 1995 1954/96 2 1,035,525 410,818 $2,750,000 $6.69 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
3 Syracuse MSA NY 1995 1988/94 1 776,571 311,557 $2,100,000 $6.74 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
4 Rochester MSA NY 1995 1967/93 2 1,533,574 495,040 $3,265,000 $6.60 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
5 Jefferson County MSA NY 1995 1986/93 1 635,765 209,873 $922,000 $4.39 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
6 Buffalo MSA NY 1996 1985/89 1 753,105 285,771 $1,665,000 $5.83 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
7 White Plains MSA NY 1995 1980/93 4 882,689 326,774 $3,190,000 $9.76 Urban
- ------------------------------------------------------------------------------------------------------------------------------------
8 Fairfield County MSA CT 1995 1986/91 2 1,270,146 499,868 $3,583,000 $7.17 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
9 Meriden MSA CT 1994 1971/94 2 711,626 292,877 $2,550,000 $8.71 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
10 Worcester County MSA MA 1996 1971/87 1 445,875 182,372 $1,410,000 $7.73 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
11 Boston MSA MA 1995 1980/93 1 322,120 155,080 $1,600,000 $10.32 Urban
- ------------------------------------------------------------------------------------------------------------------------------------
12 Bristol County MSA MA 1995 1992 2 1,005,595 349,107 $2,055,000 $5.89 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
13 Bristol County MSA MA 1995 1987/89 2 967,363 374,630 $2,762,000 $7.37 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
14 Essex County MSA MA 1995 1993/94 2 863,344 329,065 $2,315,000 $7.04 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
15 Kingston MSA MA 1994 1989/92 1 771,007 295,562 $1,682,000 $5.69 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
16 Burlington MSA VT 1995 1979/89/92 1 490,424 185,398 $1,000,000 $5.39 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
17 Bucks County MSA PA 1995 1968/75 1 348,309 305,212 $1,824,000 $5.98 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
18 Westminster MSA MD 1995 1987/94 1 524,964 193,557 $1,350,000 $6.97 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
19 Washington-Baltimore MD 1995 1979/93 2 661,639 245,217 $1,880,000 $7.67 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
20 Baltimore MSA MD 1995 1956/91 1 863,376 242,376 $1,940,000 $8.00 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
21 Prince William Cty. MSA VA 1995 1972/96 1 716,796 278,494 $1,600,000 $5.75 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
22 Arlington MSA VA 1994 1986 4 491,057 222,800 $1,930,000 $8.66 Urban
- ------------------------------------------------------------------------------------------------------------------------------------
23 Chicago/DuPage County IL 1995 1962/91 1 2,012,865 830,287 $5,790,000 $6.97 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
24 Chicago/DuPage County IL 1995 1975/96 2 1,477,103 569,926 $4,928,000 $8.65 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
25 Chicago/Cook County IL 1995 1976/94 2 1,251,294 499,999 $4,176,000 $8.35 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
26 Vernon Hills MSA IL 1995 1973/89 2 1,063,706 503,480 $2,500,000 $4.97 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
27 Bloomingdale MSA IL 1995 1981/88/91 2 1,292,186 427,609 $2,030,000 $4.75 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
28 Minneapolis MSA MN 1995 1962/94 1 982,228 201,561 $1,950,000 $9.67 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
29 Milwaukee MSA WN 1995 1972 1 1,014,851 395,598 $2,420,000 $6.12 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
30 Milwaukee MSA WN 1995 1970 1 1,257,676 371,420 $2,700,000 $7.27 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
31 Genesee County MSA MI 1995 1980/93 1 451,036 230,625 $902,000 $3.91 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
32 Louisville/Clark County IN 1995 1990 1 750,343 306,059 $1,676,000 $5.48 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
33 Indianapolis MSA IN 1995 1966/87 1 1,239,059 260,359 $1,431,000 $5.50 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
34 Tampa MSA FL 1995 1995 1 977,047 359,579 $1,980,000 $5.51 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
35 Plantation MSA FL 1995 1979/93 1 1,004,061 282,952 $1,829,000 $6.46 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
36 Miami MSA FL 1995 1982 1 1,120,827 290,385 $1,820,000 $6.27 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
37 Coral Springs MSA FL 1995 1984/96 1 1,171,127 293,183 $1,700,000 $5.80 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
38 North/Central Kansas KS 1995 1987/90 1 400,307 185,324 $830,000 $4.48 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
39 Amarillo MSA TX 1995 1982/86 1 889,508 316,190 $1,180,000 $3.73 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
40 Las Vegas MSA NV 1995 1992 1 241,580 241,580 $3,190,000 $13.20 Urban
- ------------------------------------------------------------------------------------------------------------------------------------
41 Las Vegas MSA NV 1994 1981/93 2 819,374 286,936 $2,455,000 $8.56 Urban
- ------------------------------------------------------------------------------------------------------------------------------------
42 Knoxville MSA TN 1995 1972/94 1 1,333,018 382,150 $1,810,000 $4.74 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
43 Nashville MSA TN 1995 1990 2 716,462 373,662 $2,280,000 $6.10 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
44 Riverside County MSA CA 1995 1970/91 1 1,044,536 411,640 $3,000,000 $7.29 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
45 Seattle MSA WA 1995 1979/95 1 1,012,754 311,019 $1,400,000 $4.50 Suburban
====================================================================================================================================
Survey Mean: 894,452 328,436 $2,205,556 $6.76
====================================================================================================================================
</TABLE>
<PAGE>
================================================================================
=========================================================================
Reversion Calculation
The Esplanade
Cushman & Wakefield, Inc.
-------------------------------------------------------------------------
Terminal Cap Rate
=========================================================================
9.00% 9.25% 9.50%
-----------------------------------------------
Reversion Value $106,242,589 $103,371,168 $100,650,874
Less Cost of Sale @ 2% $2,124,852 $2,067,423 $2,013,017
------------ ------------ ------------
Net Proceeds $104,117,737 $101,303,744 $98,637,856
=========================================================================
=========================================================================
Sale Yield Matrix Analysis
The Esplanade
Cushman & Wakefield Inc.
-------------------------------------------------------------------------
Internal Rate of Return
Reversion Terminal -----------------------------------------------
Value Cap 11.50% 11.75% 12.00%
=========================================================================
$104,117,737 9.00% $82,422,699 $81,138,302 $79,881,125
-----------------------------
$101,303,744 9.25% $81,475,210 $80,211,798 $78,975,095
-----------------------------
$98,637,856 9.50% $80,577,588 $79,334,056 $78,116,750
=========================================================================
--------------------------------------------------
Total Value $80,200,000
Value Per SF of GLA $194
Indicated OAR 9.04%
--------------------------------------------------
================================================================================
<PAGE>
================================================================================
Discounted Cash Flow Analysis
The Esplanade (Kenner, LA)
Cushman & Wakefield, Inc.
- --------------------------------------------------------------------------------
NET DISCOUNT PRESENT ANNUAL
CALENDER CASH FACTOR @ VALUE OF COMPOSITION CASH ON CASH
YEAR FLOW 11.75% CASH FLOWS OF YIELD RETURN
================================================================================
One $6,853,188 X 0.894855 = $6,132,607 7.65% 8.55%
Two $7,775,203 X 0.800765 = $6,226,108 7.76% 9.69%
Three $8,191,461 X 0.716568 = $5,869,739 7.32% 10.21%
Four $8,494,762 X 0.641224 = $5,447,047 6.79% 10.59%
Five $8,308,195 X 0.573802 = $4,767,262 5.94% 10.36%
Six $8,720,942 X 0.513470 = $4,477,939 5.58% 10.87%
Seven $8,855,823 X 0.459481 = $4,069,080 5.07% 11.04%
Eight $8,912,024 X 0.411168 = $3,664,343 4.57% 11.11%
Nine $9,064,502 X 0.367936 = $3,335,156 4.16% 11.30%
Ten $8,711,773 X 0.329249 = $2,868,344 3.58% 10.86%
--------------
Total Present Value of Cash Flows $46,857,624 58.42% 10.46% Average
Annual Change of Cash Flows (Yr.4 to Yr.14) 4.16% --------------
Reversion:
$9,561,833 (1) / 9.25% = $103,371,168
Less: Cost of Sale @ 2.00% $2,067,423
Net Reversion $101,303,744
X Discount Factor 0.329249
--------
Total Present Value of Reversion $33,354,173 41.58%
------
Total Present Value $80,211,798 100.00%
ROUNDED: $ 80,200,000
------------
-------------------------------------------------------
Owned GLA (SF): 413,015
Per Square Foot of Owned GLA: $194
Mall Shop GLA (SF): 366,415
Per Square Foot of Mall Shop GLA $219
Implicit Going-in Capitalization Rate:
Year One NOI $7,250,461
Going-In Cap Rate 9.04%
-------------------------------------------------------
Note: (1) Net Operating Income
================================================================================
<PAGE>
[GRAPHIC OMITTED]
[Area and Region Map]
AREA AND REGION MAP
MUNICIPIOS DE PUERTO RICO
<PAGE>
[GRAPHIC OMITTED]
[San Juan Map]
SAN JUAN MAP
<PAGE>
[GRAPHIC OMITTED]
[Montehiedra Town Center - Lease Plan]
MONTEHIEDRA TOWN CENTER - LEASE PLAN
<PAGE>
[GRAPHIC OMITTED]
[Floor Plan - Southern Section of Mall]
FLOOR PLAN - SOUTHERN SECTION OF MALL
<PAGE>
<TABLE>
<CAPTION>
===================================================================================================================================
ANNUAL CASH FLOW REPORT
Montehiedra Town Center
Cushman & Wakerfield, Inc. 1997 1998 1999 2000 2001 2002 2003
---- ---- ---- ---- ---- ---- ----
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATING INCOME
MINIMUM RENT
In-Line Mall Shops $4,085,121 $4,184,789 $4,214,534 $4,378,476 $4,467,453 $4,496,413 $4,537,730
Food Court Tenants $291,490 $291,490 $291,490 $295,040 $295,220 $295,220 $295,220
Kiosk Tenants $218,129 $221,797 $224,462 $262,151 $292,208 $308,681 $319,769
Anchor Tenants $3,058,970 $3,063,933 $3,088,746 $3,088,746 $3,093,709 $3,118,522 $3,118,522
Cinema $350,000 $350,000 $350,000 $350,000 $350,000 $350,000 $350,000
----------- ----------- ----------- ----------- ----------- ----------- -----------
Subtotal: $8,003,710 $8,112,009 $8,169,232 $8,374,413 $8,498,590 $8,568,836 $8,621,241
RECOVERIES
CAM-Majors/Anchors $261,643 $270,801 $280,279 $290,090 $300,242 $310,750 $321,626
TAX-Anchors $164,551 $170,311 $176,271 $182,441 $188,827 $195,435 $202,275
CAM-Mall Shops $1,321,706 $1,371,097 $1,416,602 $1,463,901 $1,511,032 $1,558,657 $1,606,063
TAX-Mall Shops $188,943 $196,027 $202,890 $209,340 $216,556 $224,092 $231,951
Sprinkler Recovery $59,076 $62,040 $64,207 $66,393 $68,721 $70,990 $73,411
CAM-Food Court $333,258 $343,613 $354,946 $366,480 $378,022 $389,965 $401,547
Subtotal: $2,329,177 $2,413,889 $2,495,195 $2,578,645 $2,663,400 $2,749,889 $2,836,873
Overage Rent $765,887 $895,364 $978,606 $1,004,874 $1,088,378 $1,177,193 $1,287,971
Sales volume (000) $123,531 $130,815 $135,429 $139,998 $145,062 $150,033 $155,340
Gross Rental Income: $11,098,774 $11,421,262 $11,643,033 $11,957,932 $12,250,368 $12,495,918 $12,746,085
----------- ----------- ----------- ----------- ----------- ----------- -----------
Credit Loss ($72,115) ($150,066) ($230,735) ($239,381) ($247,276) ($253,539) ($260,155)
Miscellaneous Income $50,000 $51,500 $53,045 $54,636 $56,275 $57,964 $59,703
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total Income: $11,076,659 $11,322,696 $11,465,343 $11,773,187 $12,059,367 $12,300,343 $12,545,633
OPERATlNG EXPENSES
EXPENSES
Common Area Maint. $1,500,000 $1,552,500 $1,606,838 $1,663,077 $1,721,284 $1,781,529 $1,843,883
Real Estate Taxes $350,262 $362,521 $375,209 $388,342 $401,934 $416,001 $430,561
General &
Administrative $115,000 $118,825 $122,778 $126,863 $131,084 $135,447 $139,956
Miscellaneous $25,000 $25,875 $26,781 $27,718 $28,688 $29,692 $30,731
Management Fee $350,785 $360,296 $365,914 $375,172 $383,479 $389,841 $396,369
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total Expenses: $2,341,047 $2,420,017 $2,497,520 $2,581,172 $2,666,469 $2,752,510 $2,841,500
NET OPERATING INCOME $8,735,612 $8,902,679 $8,967,823 $9,192,015 $9,392,898 $9,547,833 $9,704,133
Structural Reserve $78,818 $81,576 $84,432 $87,387 $90,445 $93,611 $96,887
----------- ----------- ----------- ----------- ----------- ----------- -----------
Subtotal: $78,818 $81,576 $84,432 $87,387 $90,445 $93,611 $96,887
NET CASH FLOW $8,656,794 $8,821,103 $8,883,391 $9,104,628 $9,302,453 $9,454,222 $9,607,246
===================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
========================================================================================================
ANNUAL CASH FLOW REPORT
Montehledra Town Center CAGR CAGR
Cushman & Wakerfield, Inc. 2004 2005 2006 2007 1997-06 1999-06
========================================================================================================
<S> <C> <C> <C> <C> <C> <C>
OPERATING INCOME
MINIMUM RENT
In-Line Mall Shops $4,506,691 $4,929,683 $5,700,617 $6,105,924 3.8% 4.4%
Food Court Tenants $295,220 $357,459 $491,954 $522,997 6.0% 7.8%
Kiosk Tenants $323,492 $306,354 $348,647 $374,139 5.3% 6.0%
Anchor Tenants $3,121,003 $3,133,410 $3,133,410 $3,133,410 0.3% 0.2%
Cinema $350,000 $350,000 $385,000 $402,500 1.1% 1.4%
----------- ----------- ----------- -----------
Subtotal: $8,596,406 $9,076,906 $10,059,628 $10,538,970 2.6% 3.0%
RECOVERIES
CAM-Majors/Anchors $332,883 $344,535 $356,594 $369,074 3.5% 3.5%
TAX-Anchors $209,355 $216,682 $224,266 $232,115 3.5% 3.5%
CAM-Mall Shops $1,644,433 $1,727,357 $1,811,107 $1,906,506 3.6% 3.6%
TAX-Mall Shops $239,537 $244,751 $254,406 $264,414 3.4% 3.3%
Sprinkler Recovery $74,668 $64,311 $65,230 $63,565 1.1% 0.2%
CAM-Food Court $412,279 $371,433 $431,119 $459,870 2.9% 2.8%
Subtotal: $2,913,155 $2,969,069 $3,142,722 $3,295,544 3.4% 3.4%
Overage Rent $1,382,980 $799,671 $632,062 $461,534 -2.1% -6.1%
Sales volume (000) $159,384 $156,939 $170,362 $176,239 3.6% 3.3%
Gross Rental Income: $12,892,541 $12,845,646 $13,834,412 $14,296,048 2.5% 2.5%
----------- ----------- ----------- -----------
Credit Loss ($263,605) ($261,125) ($288,753) ($301,057) 16.7% 3.3%
Miscellaneous Income $61,494 $63,338 $65,239 $67,196 3.0% 3.0%
------- ------- ------- -------
Total Income: $12,690,430 $12,647,859 $13,610,898 $14,062,187 2.3% 2.5%
OPERATlNG EXPENSES
EXPENSES
Common Area Maint. $1,908,419 $1,975,213 $2,044,346 $2,115,898 3.5% 3.5%
Real Estate Taxes $445,631 $461,228 $477,371 $494,079 3.5% 3.5%
General &
Administrative $144,616 $149,432 $154,408 $159,552 3.3% 3.3%
Miscellaneous $31,807 $32,920 $34,072 $35,265 3.5% 3.5%
Management Fee $399,176 $395,064 $427,668 $440,019 2.2% 2.3%
----------- ----------- ----------- -----------
Total Expenses: $2,929,649 $3,013,857 $3,137,865 $3,244,813 3.3% 3.3%
NET OPERATING INCOME $9,760,781 $9,634,002 $10,473,033 $10,817,374 2.0% 2.2%
Structural Reserve $100,278 $103,788 $107,421 $111,180 3.5% 3.5%
----------- ----------- ----------- -----------
Subtotal: $100,278 $103,788 $107,421 $111,180 3.5% 3.5%
NET CASH FLOW $9,660,503 $9,530,214 $10,365,612 $10,706,194 2.0% 2.2%
========================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
==========================================================================================================================
RECENT LEASING ACTIVITY - Mall Shop Tenants By Size
Montehiedra Town Center
Cushman & Wakefield, Inc.
- --------------------------------------------------------------------------------------------------------------------------
Lease Initial Initial Final Final % Change
Tenant Category Term Area Annual Rent/ Annual Rent/ In Rent
(By Size/Area) (Yrs) (Sq/Ft) Rent Sq/Ft Rent Sq/Ft Over Term
==========================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
1. Tenants < 750 sf
Victorian Rook (10/95) 10.0 709 $17,725 $25.00 $21,270 $30.00 20.0%
Crossway Beauty (8/96) 6.0 495 $17,325 $35.00 $19,800 $40.00 14.3%
Montehiedra (10/96) 6.0 585 $14,625 $25.00 $17,550 $30.00 20.0%
------------------- --- --- ------- ------ ------- ------ -----
Subtotal: 3 7.3 1,789 $49,675 $27.77 $58,620 $32.77 19.0%
- --------------------------------------------------------------------------------------------------------------------------
2. Tenants 751-1200 sf
The Horse Lovers' (11/96) 7.0 800 $24,000 $30.00 $29,600 $37.00 23.3%
Clazados Pimpolin (5/95) 10.0 1,200 $30,000 $25.00 $36,000 $30.00 20.0%
Tony Walker (4/94) 7.0 751 $30,000 $39.95 $35,822 $47.70 19.4%
Postal Zone (10/96) 8.0 1,080 $24,840 $23.00 $32,400 $30.00 30.4%
Lord Jim Leather (3/96) 5.0 800 $22,400 $28.00 $24,000 $30.00 7.1%
Hill Monograms (1/96) 10.0 751 $22,530 $30.00 $26,285 $35.00 16.7%
--------------------- ---- --- ------- ------ ------- ------ -----
Subtotal: 6 7.8 5,382 $153,770 $28.57 $184,107 $34.21 19.7%
- --------------------------------------------------------------------------------------------------------------------------
3. Tenants 1201-2000 sf
Ther Pro Image (5/95) 10.0 1,461 $43,830 $30.00 $51,135 $35.00 16.7%
Madelene Boutique (11/95) 10.0 1,780 $46,280 $26.00 $60,520 $34.00 30.8%
The Book Shop (5/96) 8.0 1,716 $32,999 $19.23 $32,999 $19.23 0.0%
Banco Santander (2/96) 10.0 1,553 $46,590 $30.00 $62,120 $40.00 33.3%
Eye Center (3/95) 10.0 1,596 $39,900 $25.00 $47,880 $30.00 20.0%
Crossway Family (5/95) 10.0 1,430 $42,900 $30.00 $50,050 $35.00 16.7%
Bostonian (3/95) 10.0 1,335 $29,370 $22.00 $34,710 $26.00 18.2%
---------------- ---- ----- ------- ------ ------- ------ -----
Subtotal: 7 9.7 10,871 $281,869 $25.93 $339,414 $31.22 20.4%
- --------------------------------------------------------------------------------------------------------------------------
4. Tenants 2001-3500 sf
Xposif (12/96) 10.0 3,419 $51,285 $15.00 $61,542 $18.00 20.0%
La Defensa (11/95) 10.0 2,394 $52,668 $22.00 $57,456 $24.00 9.1%
Athletic Express (12/96) 10.0 3,294 $82,350 $25.00 $82,350 $25.00 0.0%
Almacenes Gonzales (2.96) 10.0 2,861 $71,525 $25.00 $85,830 $30.00 20.0%
Click (9/98) 10.0 2,180 $43,600 $20.00 $47,960 $22.00 10.0%
Patrica (5/96) 8.0 2,025 $52,650 $26.00 $56,700 $28.00 7.7%
-------------- --- ----- ------- ------ ------- ------ ----
Subtotal: 6 9.7 16,173 $354,078 $21.89 $391,838 $24.23 10.7%
- --------------------------------------------------------------------------------------------------------------------------
5. Tenants 3501-5000 sf
La Gran Via (5/95) 10.0 4,360 $109,000 $25.00 $130,800 $30.00 20.0%
Party Land (11/95) 10.0 4,029 $76,551 $19.00 $80,580 $20.00 5.3%
One Price Clothing (11/95) 10.0 4,360 $87,200 $20.00 $87,200 $20.00 0.0%
Footaction (12/95) 10.0 4,966 $99,320 $20.00 $99,320 $20.00 0.0%
Kay Bee Toys (7/95) 10.0 4,317 $77,706 $18.00 $90,657 $21.00 16.7%
Le Club (4/96) 10.0 4,005 $92,115 $23.00 $100,125 $25.00 8.7%
-------------- ---- ----- ------- ------ -------- ------ ----
Subtotal: 6 10.0 26,037 $541,892 $20.81 $588,682 $22.61 8.6%
- --------------------------------------------------------------------------------------------------------------------------
6. Tenants 5001-10000 sf
Kress & Kress Kids (4/95) 10.0 6,331 $94,965 $15.00 $107,627 $17.00 13.3%
Discovery Zone (2/95) 20.0 10,000 $200,000 $20.00 $240,000 $24.00 20.0%
--------------------- ---- ------ -------- ------ -------- ------ -----
Subtotal: 2 15.0 16,331 $294,965 $18.06 $347,627 $21.29 17.9%
- --------------------------------------------------------------------------------------------------------------------------
7. Tenants > 10000 sf
Giralda (12/94) 15.0 14,615 $226,971 $15.53 $250,501 $17.14 10.4%
Marianne (12/94) 10.0 10,481 $146,734 $14.00 $146,734 $14.00 0.0%
---------------- ---- ------ -------- ------ -------- ------ ----
Subtotal: 2 12.5 25,096 $373,705 $14.89 $397,235 $15.83 6.3%
==========================================================================================================================
Survey Total: 32 10.3 101,679 $2,049,954 $20.16 $2,307,523 $22.69 12.6%
==========================================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
==========================================================================================================================
FOOD COURT ANALYSIS - Rent & Sales Productivity
Montehiedra Town Center
Cushman & Wakefield, Inc.
- --------------------------------------------------------------------------------------------------------------------------
1996 1995
--------------------- ------------------------- Rent-
Lease Demised Annual Rent Per Annual Sales Per Sales
Tenant Date Area Rent Sq/Ft Sales Sq/Ft Ratio
==========================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
Sbarro Mar-92 700 $42,000 $60.00 $929,701 $1,328.14 4.52%
- --------------------------------------------------------------------------------------------------------------------------
El Sandwichon Mar-92 360 $22,320 $62.00 $297,260 $825.72 7.51%
- --------------------------------------------------------------------------------------------------------------------------
Flamers Mar-92 461 $27,660 $60.00 $1,061,328 $2,302.23 2.61%
- --------------------------------------------------------------------------------------------------------------------------
Taco Maker Oct-93 530 $31,800 $60.00 $760,838 $1,435.54 4.18%
- --------------------------------------------------------------------------------------------------------------------------
La Parilla Mar-92 370 $37,000 $100.00 $715,032 $1,932.52 5.17%
- --------------------------------------------------------------------------------------------------------------------------
Chopsticks Mar-92 651 $45,570 $70.00 $721,296 $1,107.98 6.32%
- --------------------------------------------------------------------------------------------------------------------------
Country Pit Jun-95 651 $39,060 $60.00 $878,398 $1,349.31 4.45%
- --------------------------------------------------------------------------------------------------------------------------
KFC Mar-92 768 $46,080 $60.00 $791,077 $1,030.05 5.82%
- --------------------------------------------------------------------------------------------------------------------------
Total: 8 4,491 $291,490 $6,154,930
Average: 561 $36,436 $64.91 $769,366 $1,37O.5O 4.74%
==========================================================================================================================
</TABLE>
<PAGE>
================================================================================
AVERAGE MALL SHOP RENT CALCULATION
Montehiedra Town Center
Cushman & Wakefield, Inc.
- --------------------------------------------------------------------------------
Suite Size Applicable Pro-Rata Initial Weighted
Category Sq/Ft Share Market Rent Average
================================================================================
In-Line Mall Shops
Under - 750 SF 2,817 SF 1.45% $31.00 $0.45
751 - 1,200 SF 11,787 SF 6.07% $30.00 $1.82
1,201 - 2,000 SF 28,328 SF 14.60% $26.00 $3.80
2,001 - 3,500 SF 61,273 SF 31.58% $22.00 $6.95
3,501 - 5,000 SF 48,397 SF 24.94% $20.00 $4.99
5,001 - 10,000 SF 16,331 SF 8.42% $18.00 $1.52
Over - 10,000 SF 25,096 SF 12.93% $15.00 $1.94
================================================================================
Mall Shop Average Rent: 194,029 SF 100.00% $21.46
================================================================================
===============================================
Other Components Sq/Ft
===============================================
Food Court Tenants 4,491 SF
Kiosk Tenants 1,530 SF
Anchor Tenants 275,402 SF
Cinema 50,000 SF
===============================================
Property Total 525,452 SF
===============================================
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
COMMON AREA MAINTENANCE EXPENSE COMPARABLES
Cushman & Wakefield, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Budget Year No. Total Shop Budgeted Expense
No. Area Location State Year Built Stories GLA GLA CAM Expense Per Sq/Ft Location
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 Saratoga County MSA NY 1995 1990/91/93 1 656,501 256,668 $1,900,000 $7.40 Suburban
2 Syracuse MSA NY 1995 1954/96 2 1,035,525 410,818 $2,750,000 $6.69 Suburban
3 Syracuse MSA NY 1995 1988/94 1 776,571 311,557 $2,100,000 $6.74 Suburban
4 Rochester MSA NY 1995 1967/93 2 1,533,574 495,040 $3,265,000 $6.60 Suburban
5 Jefferson County MSA NY 1995 1986/93 1 635,765 209,873 $922,000 $4.39 Suburban
6 Bufalo MSA NY 1996 1985/89 1 753,105 285,771 $1,665,000 $5.83 Suburban
7 White Plains MSA NY 1995 1980/93 4 882,689 326,774 $3,190,000 $9.76 Urban
8 Fairfield County MSA CT 1995 1986/91 2 1,270,146 499,868 $3,583,000 $7.17 Suburban
9 Meriden MSA CT 1994 1971/94 2 711,626 292,877 $2,550,000 $8.71 Suburban
10 Worcester County MSA MA 1996 1971/87 1 445,875 182,372 $1,410,000 $7.73 Suburban
11 Boston MSA MA 1995 1980/93 1 322,120 155,080 $1,600,000 $10.32 Urban
12 Bristol County MSA MA 1995 1992 2 1,005,595 349,107 $2,055,000 $5.89 Suburban
13 Bristol County MSA MA 1995 1987/89 2 967,363 374,630 $2,762,000 $7.37 Suburban
14 Essex County MSA MA 1995 1993/194 2 863,344 329,065 $2,315,000 $7.04 Suburban
15 Kingston MSA MA 1994 1989/92 1 771,007 295,562 $1,682,000 $5.69 Suburban
16 Burlington MSA VT 1995 1979/89/92 1 490,424 185,398 $1,000,000 $5.39 Suburban
17 Bucks County MSA PA 1995 1968/75 1 348,309 305,212 $1,824,000 $5.98 Suburban
18 Westminster MSA MD 1995 1987/94 1 524,964 193,557 $1,350,000 $6.97 Suburban
19 Washington-Baltimore MD 1995 1979/93 2 661,639 245,217 $1,880,000 $7.67 Suburban
20 Baltimore MSA MD 1995 1956/91 1 863,376 242,376 $1,940,000 $8.00 Suburban
21 Prince William Cty. MSA VA 1995 1972/96 1 716,796 278,494 $1,600,000 $5.75 Suburban
22 Arlington MSA VA 1994 1986 4 491,057 222,800 $1,930,000 $8.66 Urban
23 Chicago/DuPage County IL 1995 1962/91 1 2,012,865 830,287 $5,790,000 $6.97 Suburban
24 Chicago/DuPage County IL 1995 1975/96 2 1,477,103 569,926 $4,928,000 $8.65 Suburban
25 Chicago/Cook County IL 1995 1976/94 2 1,251,294 499,999 $4,176,000 $8.35 Suburban
26 Vernon Hills MSA IL 1995 1973/89 2 1,063,706 503,480 $2,500,000 $4.97 Suburban
27 Bloomingdale MSA IL 1995 1981/88/91 2 1,292,186 427,609 $2,030,000 $4.75 Suburban
28 Minneapolis MSA MN 1995 1962/94 1 982,228 201,561 $1,950,000 $9.67 Suburban
29 Milwaukee MSA WN 1995 1972 1 1,014,851 395,598 $2,420,000 $6.12 Suburban
30 Milwaukee MSA WN 1995 1970 1 1,257,676 371,420 $2,700,000 $7.27 Suburban
31 Genesee County MSA MI 1995 1980/93 1 451,036 230,625 $902,000 $3.91 Suburban
32 Louisville/Clark County IN 1995 1990 1 750,343 306,059 $1,676,000 $5.48 Suburban
33 Indianapolis MSA IN 1995 1968/87 1 1,239,059 260,359 $1,431,000 $5.50 Suburban
34 Tampa MSA FL 1995 1995 1 977,047 359,579 $1,980,000 $5.51 Suburban
35 Plantation MSA FL 1995 1979/93 1 1,004,061 282,952 $1,829,000 $6.46 Suburban
36 Miami MSA FL 1995 1982 1 1,120,827 290,385 $1,820,000 $6.27 Suburban
37 Coral Springs MSA FL 1995 1984/96 1 1,171,127 293,183 $1,700,000 $5.80 Suburban
38 North/Central Kansas KS 1995 1987/90 1 400,307 185,324 $830,000 $4.48 Suburban
39 Amarillo MSA TX 1995 1982/86 1 889,508 316,190 $1,180,000 $3.73 Suburban
40 Las Vegas MSA NV 1995 1992 1 241,580 241,580 $3,190,000 $13.20 Urban
41 Las Vegas MSA NV 1994 1981/93 2 819,374 286,936 $2,455,000 $8.56 Urban
42 Knoxville MSA TN 1995 1972/94 1 1,333,018 382,150 $1,810,000 $4.74 Suburban
43 Nashville MSA TN 1995 1990 2 716,462 373,662 $2,280,000 $6.10 Suburban
44 Riverside County MSA CA 1995 1970/91 1 1,044,536 411,640 $3,000,000 $7.29 Suburban
45 Seattle MSA WA 1995 1979/95 1 1,012,754 311,019 $1,400,000 $4.50 Suburban
====================================================================================================================================
Survey Mean: 894,452 328,436 $2,205,556 $6.76
====================================================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
OPERATING EXPENSE STATISTICS
Cushman & Wakefield. Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
ULI ULI ULI ULI ULI ULI ULI ULI
--- --- --- --- --- --- --- ---
Super-Regional Super-Regional Super-Regional Super-Regional Regional Regional Regional Regional
Centers/ Centers/ Centers/ Centers/ Centers/ Centers/ Centers/ Centers/
U.S. U.S. East East U.S. U.S. East East
Average Median Average Median Average Median Average Median
==================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Property Profile
Total GLA: 999,544 1,009,585 935,436 937,742 582,893 579,154 644,794 676,000
Total Owned GLA: 563,689 535,272 531,481 483,976 461,822 435,855 512,183 448,114
Shopsales/sf*: $203.09 $198.93 $220.64 $183.81 $176.16 $163.54 $204.96 $183.05
Anchor Sales/sf: $149.38 $135.66 $152.35 $136.98 $156.30 $152.29 $174.78 $176.70
Operating Income
Minimum Rent: $16.30 $16.79 $17.14 $18.17 $12.05 $11.33 $13.62 $11.99
Overage Rent: $1.14 $1.04 $1.40 $1.25 $0.86 $0.76 $0.92 $1.00
CAM Charges: $4.68 $4.60 $5.01 $4.70 $3.34 $3.23 $4.33 $4.02
Property Taxes: $1.72 $1.54 $1.79 $1.52 $1.13 $1.08 $1.62 $1.32
Insurance: $0.11 $0.06 $0.13 $0.14 $0.09 $0.08 $0.13 $0.05
Utilities: $1.74 $1.84 $2.38 $2.43 $1.55 $1.18 $1.35 $0.65
Other: $1.15 $0.62 $1.24 $0.53 $0.42 $0.37 $0.28 $0.34
----- ----- ----- ----- ----- ----- ----- -----
Total Income: $27.32 $27.32 $29.08 $28.59 $19.86 $18.98 $23.25 $22.25
Operating Expenses
Total Maintenance**: $4.50 $4.45 $4.85 $4.67 $3.43 $3.16 $4.11 $3.50
Real Estate Taxes: $1.86 $1.55 $2.04 $1.51 $1.27 $1.16 $1.75 $1.19
Insurance: $0.32 $0.28 $0.40 $0.29 $0.26 $0.23 $0.30 $0.26
Advertising: $0.60 $0.44 $0.83 $0.61 $0.56 $0.48 $0.64 $0.35
Administrative***: $0.87 $0.74 $0.82 $0.71 $0.93 $0.82 $0.96 $0.80
Management Fee: $0.63 $0.59 $0.61 $0.55 $0.46 $0.39 $0.53 $0.42
----- ----- ----- ----- ----- ----- ----- -----
Total Expenses: $9.25 $8.87 $9.84 $8.47 $7.35 $6.63 $8.89 $7.38
OER: 33.9% 32.5% 33.8% 29.6% 37.0% 34.9% 38.2% 33.2%
Net Operating Income $17.63 $17.12 $18.72 $17.01 $12.02 $10.85 $14.33 $13.28
- --------------------
* Average sales include all mall shop tenants.
** CAM expenses include repairs & maintenance, utilities, and security.
*** Management fees & bad debt allowances have been deducted from
administrative costs. Management has been shown separately.
Source: Urban Land Institute "Dollars & Cents" (1995); International Council of
Shopping Centers "The Score" (1996).
(Because the data are means/medians, detailed amounts do not add to totals).
=========================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
=========================================================================================================================
OPERATING EXPENSE STATISTICS Regional & Super-Regional Malls
Cushman & Wakefield. Inc. East
- -------------------------------------------------------------------------------------------------------------------------
ICSC ICSC ICSC ICSC ICSC ICSC
---- ---- ---- ---- ---- ----
Enclosed Malls Enclosed Malls Enclosed Malls Enclosed Malls Enclosed Malls Enclosed Malls
U.S. U.S. U.S. U.S. East East
Total 500,000- 800,000- Over Median Median
Survey 799,999sf 999,999sf 1,000,000sf <800,000sf >800,000sf
=========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Property Profile
Total GLA: 744,050 617,499 900,813 1,148,133 324,816 988,503
Total Owned GLA: 441,394 460,399 515,392 575,309 280,740 635,789
Shopsales/sf*: $222.04 $201.55 $259.74 $255.55 $161.96 $251.73
Anchor Sales/sf: $159.39 $145.82 $184.98 $171.34 $160.49 $174.86
Operating Income
Minimum Rent: $17.60 $15.38 $19.85 $21.60 $16.32 $22.97
Overage Rent: -- -- -- -- -- --
CAM Charges: $5.73 $5.45 $8.23 $7.24 $4.28 $7.99
Property Taxes: $1.84 $1.14 $2.76 $2.82 $1.63 $3.45
Insurance: $0.15 $0.17 $0.19 $0.13 $0.13 $0.15
Utilities: $0.73 $1.56 $0.78 $1.08 $0.40 $1.05
Other: $0.28 $0.22 $0.38 $0.39 $0.10 $0.54
----- ----- ----- ----- ----- -----
Total Income: $27.60 $26.22 $32.90 $36.05 $21.61 $39.42
Operating Expenses
Total Maintenance** $4.33 $4.65 $5.45 $5.52 $3.27 $6.11
Real Estate Taxes: $2.31 $1.82 $3.32 $3.30 $2.37 $3.95
Insurance: $0.37 $0.34 $0.42 $0.43 $0.39 $0.43
Advertising: $1.18 $1.04 $1.37 $1.81 $0.77 $1.37
Administrative***: $1.05 $1.02 $1.21 $1.29 $0.83 $1.51
Management Fee: $0.75 $0.65 $0.91 $0.95 $0.51 $1.06
----- ----- ----- ----- ----- -----
Total Expenses: $11.06 $10.50 $12.65 $13.66 $10.09 $15.59
OER: 40.1% 40.0% 38.4% 37.9% 46.7% 39.5%
Net Operating Income $16.26 $14.55 $19.31 $21.19 $14.98 $24.27
=========================================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
============================================================================================================================
SENSITIVITY ANALYSIS
Montehiedra Town Center 1 2 3 4 5 6 7
Cushman & Wakefield, Inc. 1997 1998 1999 2000 2001 2002 2003
---- ---- ---- ---- ---- ---- ----
============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
Effective Gross Income: $11,076,659 $11,322,696 $11,465,343 $11,773,187 $12,059,367 $12,300,343 $12,545,633
Operating Expenses: $2,341,047 $2,420,017 $2,497,520 $2,581,172 $2,666,469 $2,752,510 $2,841,500
Net Operating Income: $8,735,612 $8,902,679 $8,967,823 $9,192,015 $9,392,898 $9,547,833 $9,704,133
Net Cash Flow: $8,656,794 $8,821,103 $8,883,391 $9,104,628 $9,302,453 $9,454,222 $9,607,246
Property Value: $92,000,000
Net Sales Price: $91,838,162 $92,510,174 $94,822,892 $96,895,158 $98,493,435 $100,105,793 $100,690,162
Net Cash Flow: $8,656,794 $8,821,103 $8,883,391 $9,104,628 $9,302,453 $9,454,222 $9,607,246
- NOI Return: 9.50% 9.68% 9.75% 9.99% 10.21% 10.38% 10.55%
- Cash-On-Cash Return: 9.41% 9.59% 9.66% 9.90% 10.11% 10.28% 10.44%
Discounted Income Stream
Discounted Sales Price: $82,551,157 $74,746,259 $68,867,313 $63,256,040 $57,797,251 $52,803,060 $47,740,493
Discounted Cash Flow: $7,781,388 $7,127,264 $6,451,768 $5,943,772 $5,458,803 $4,986,843 $4,555,109
Net Present Value: $90,332,545 $89,654,911 $90,227,732 $90,560,231 $90,560,246 $90,552,897 $90,045,439
============================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
========================================================================================================
SENSITIVITY ANALYSIS -------------------
Montehiedra Town Center 8 9 10 11 CAGR CAGR
Cushman & Wakefield, Inc. 2004 2005 2006 2007 1997-06 1998-06
========================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Effective Gross Income: $12,690,430 $12,647,859 $13,610,898 $14,062,187 2.3% 2.5%
Operating Expenses: $2,929,649 $3,013,857 $3,137,865 $3,244,813 3.3% 3.3%
Net Operating Income: $9,760,781 $9,634,002 $10,473,033 $10,817,374 2.0% 2.2%
Net Cash Flow: $9,660,503 $9,530,214 $10,365,612 2.0% 2.2%
Property Value: $111,889,763 2.2%
-------------------
-------------------
Net Sales Price: $99,382,336 $108,037,604 $111,589,753 Average Returns
Net Cash Flow: $9,660,503 $9,530,214 $10,365,612 Over Holding Period
-------------------
- NOI Return: 10.61% 10.47% 11.38% NOI 10.3%
- Cash-On-Cash Return: 10.50% 10.36% 11.27% Cash 10.2%
Discounted Income Stream Yield Composition
Discounted Sales Price: $42,355,425 $41,388,031 $38,425,906 Reversion 41.7%
Discounted Cash Flow: $4,117,177 $3,650,921 $3,569,396 Cash Flow 58.3%
--------- -----
Net Present Value: $88,777,548 $91,461,076 $92,068,347 Total Value 100.0%
-------------------
========================================================================================================
</TABLE>
================================================================================
ASSUMPTIONS & CONCLUSIONS
- --------------------------------------------------------------------------------
Value Range: Low High Conclusion
Discount Rate: 11.75% 11.00% 11.25%
Terminal Cap Rate: 10.00% 9.25% 9.50%
================================================================================
Value Range/Conclusion: $87,415,694 $94,584,354 $92,000,000
- --------------------------------------------------------------------------------
- Going-In Cap Rate: 9.99% 9.24% 9.50%
- --------------------------------------------------------------------------------
- Price/sf Owned GLA: $166.36 $180.01 $175.09
- --------------------------------------------------------------------------------
- Price/sf Mall Shop GLA: $436.97 $472.80 $459.89
================================================================================
[GRAPHIC OMITTED]
[Bar Chart for NOI vs. Cash Flow]
NOI vs. Cash Flow
================================================================================
SALE-YIELD MATRIX
- --------------------------------------------------------------------------------
Net Reversion Terminal Discount Rate (IRR)
Cost of Sale: Capitalization --------------------------------------------------
2.00% Rate 11.00% 11.25% 11.50% 11.75%
================================================================================
$114,605,692 9.25% $94,584,354 $93,106,885 $91,660,938 $90,245,731
- --------------------------------------------------------------------------------
$111,589,753 9.50% $93,522,187 $92,068,347 $90,645,452 $89,252,735
- --------------------------------------------------------------------------------
$108,728,477 9.75% $92,514,490 $91,083,067 $89,682,042 $88,310,663
- --------------------------------------------------------------------------------
$106,010,265 10.00% $91,557,178 $90,147,052 $88,766,803 $87,415,694
================================================================================
[GRAPHIC OMITTED]
[Bar Chart for NPV vs. Sales Price By Year]
NPV vs. Sales Price By Year
<PAGE>
PHOTOGRAPHS OF SUBJECT PROPERTY
[EXTERIOR PHOTOGRAPH OF ARBORETUM VI PROPERTY]
[EXTERIOR PHOTOGRAPH OF ARBORETUM VII PROPERTY]
<PAGE>
PHOTOGRAPHS OF SUBJECT PROPERTY
[INTERIOR VIEW OF SELECTED BUILDINGS]
[INTERIOR VIEW OF SELECTED BUILDINGS]
<PAGE>
PHOTOGRAPHS OF SUBJECT PROPERTY
[EXTERIOR VIEW LOOKING EAST ALONG ARBORETUM PARKWAY]
[EXTERIOR VIEW LOOKING WEST ALONG ARBORETUM PARKWAY]
<PAGE>
PLAZA 1900
1900 Gallows Road
McLean, Virginia
Rent Roll Analysis
<TABLE>
<CAPTION>
LEASE DATES CURRENT
------------------ ANNUAL RENT
TENANT SQUARE BEGINNING ENDING TERM -----------------
NO. SUITE TENANT FEET PERIOD PERIOD (YRS.) TOTAL PER SF
- ------ ----- ----------------- ------ --------- ------ ------ ----- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 100 GRC International 166,197 Jan-90 May-09 19.4 $3,959,892 $23.83
1998 $24.12
1999 $21.45
2000 $22.46
2001 $21.24
2002 $20.86
2003 $22.03
2004 $25.81
2005 $21.41
2006 $21.09
2007 $20.72
2008 $18.89
2009 $23.28
2 NCI 36,487 Jun-94 Sep-04 10.3 $ 536,122 $14.69
Year 4 $15.25
Year 5 $15.82
Year 6 $16.82
Year 7 $17.45
Year 8 $18.08
Year 9 $18.74
Year 10 $19.42
Year 11 $20.12
------- ----------- --------
Total Rentable Area 202,684 Total Annual Rent $4,520,056 $22.30 / Occupied Area
(RESTUBBED FROM ABOVE TABLE)
EXPENSE RENEWAL OPTIONS
TENANT ANNUAL RECOVERY --------------- IMPROVEMENTS
NO. ESCALATIONS BASIS NO. YRS. RATE CONCESSIONS
- ------ ----------- -------- -------- ---- ------------
<C> <C> <C> <C> <C> <C>
1 As shown FS
2 As shown FS None $0.27
</TABLE>
- --------------------------
Total Percent Average Tenant Size 101,342 SF
Net Rentable Area 202,684 100.00% Average Rental Rate $22.30
Area Leased/Occupied 202,684 100.00%
-------- ------
Vacant Leasable Area -- 0.00%
<PAGE>
["COMPARABLE RENTALS" MAP: DETAIL MAP SHOWING LOCATION
OF SUBJECT PROPERTY AND SURROUNDING AREA]
<PAGE>
================================================================================
Population Growth and Forecasts
================================================================================
Compound
Growth Compound
Rate 1980- Growth Rate
Area 1980 1990 1996 2001 1996 1996-2001
================================================================================
Rocky Mount MSA 123,141 133,235 141,555 146,585 0.87% 0.70%
--------------------------------------------------------------
Nash County 21,928 24,477 25,460 26,139 0.94% 0.53%
--------------------------------------------------------------
Edgecombe County 32,535 35,666 37,109 37,918 0.83% 0.43%
================================================================================
Source: Equifax National Decision Systems
================================================================================
================================================================================
Household Data and Forecasts
================================================================================
Compound
Growth Compound
Rate 1980- Growth Rate
Area 1980 1990 1996 2001 1996 1996-2001
================================================================================
Rocky Mount MSA 2,826 4,133 4,614 4,852 3.11% 1.01%
--------------------------------------------------------------
Nash County 7,824 9,738 10,578 10,941 1.90% 0.68%
--------------------------------------------------------------
Edgecombe County 11,490 13,972 15,118 15,596 1.73% 0.62%
================================================================================
Source: Equifax National Decision Systems
================================================================================
================================================================================
Median Household Income Data and Forecasts
================================================================================
Compound
Growth Compound
Rate 1980- Growth Rate
Area 1980 1990 1996 2001 1996 1996-2001
================================================================================
Rocky Mount MSA $15,989 $29,220 $38,921 $50,237 5.72% 5.24%
------------------------------------------------------------
Nash County $17,385 $34,270 $43,095 $53,611 5.84% 4.46%
------------------------------------------------------------
Edgecombe County $18,017 $36,384 $45,112 $56,162 5.90% 4.48%
================================================================================
Source: Equifax National Decision Systems
================================================================================
================================================================================
Average Household Income Data and Forecasts
================================================================================
Compound
Growth Compound
Rate 1980- Growth Rate
Area 1980 1990 1996 2001 1996 1996-2001
================================================================================
Rocky Mount MSA $18,401 $34,510 $49,888 $68,129 6.43% 6.43%
------------------------------------------------------------
Nash County $19,600 $39,382 $54,068 $73,867 6.55% 6.44%
------------------------------------------------------------
Edgecombe County $20,763 $43,100 $56,552 $76,861 6.46% 6.33%
================================================================================
Source: Equifax National Decision Systems
================================================================================
<PAGE>
================================================================================
DEMOGRAPHIC STATISTICS
Golden East Crossing (Rocky Mount, NC)
Cushman & Wakefield, Inc.
- --------------------------------------------------------------------------------
Effective Trade Rocky Mount State of United
Area MSA North Carolina States (000)
================================================================================
POPULATION STATISTICS
1980 242,775 123,141 5,881,768 226,545,856
1990 256,493 133,235 6,628,637 248,709,872
1996 268,643 141,551 7,280,830 265,037,504
2001 276,809 146,585 7,848,028 277,157,184
Compound Annual Change
1980-1990 0.55% 0.79% 1.20% 0.94%
1990-1996 0.77% 1.01% 1.58% 1.07%
1996-2001 0.60% 0.70% 1.51% 0.90%
- --------------------------------------------------------------------------------
HOUSEHOLD STATISTICS
1980 82,158 41,867 2,043,292 80,389,688
1990 95,426 49,360 2,517,026 91,947,408
1996 102,995 53,700 2,862,251 100,130,936
2001 107,127 55,876 3,123,172 105,246,728
Compound Annual Change
1980-1990 1.51% 1.66% 2.11% 1.35%
1990-1996 1.28% 1.41% 2.17% 1.43%
1996-2001 0.79% 0.80% 1.76% 1.00%
- --------------------------------------------------------------------------------
AVERAGE HOUSEHOLD INCOME
1980 $16,464 $16,385 $17,332 $20,307
1990 $29,054 $30,363 $33,242 $38,453
1996 $35,389 $37,181 $42,552 $49,031
2001 $45,082 $47,835 $56,532 $65,729
Compound Annual Change
1980-1990 5.84% 6.36% 6.73% 6.59%
1990-1996 3.34% 3.43% 4.20% 4.13%
1996-2001 4.96% 5.17% 5.85% 6.04%
- --------------------------------------------------------------------------------
PER CAPITA INCOME STATISTICS
1980 $5,572 $5,600 $6,133 $7,298
1990 $10,908 $11,345 $12,885 $14,420
1996 $13,869 $14,429 $17,153 $18,905
2001 $17,880 $18,729 $22,985 $25,467
Compound Annual Change
1980-1990 6.95% 7.32% 7.71% 7.05%
1990-1996 4.92% 4.93% 5.89% 5.57%
1996-2001 5.21% 5.36% 6.03% 6.14%
- --------------------------------------------------------------------------------
SOURCE: Equifax National Decision Systems
================================================================================
<PAGE>
[GRAPHIC OMITTED]
[Leasing Plan]
GOLDEN EAST CROSSING
Rocky Mount, North Carolina 27804
<PAGE>
[GRAPHIC OMITTED]
[Plot Plan]
Exhibit 'B'
Plot Plan
GOLDEN EAST CROSSING
Rocky Mount, N.C.
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
REGIONAL MALL SALES 1995
1995 Transaction Chart
Cushman & Wakefield, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Sale Sale Year Sale Total Sold Shop Shop Occu- Shop
No. Property/Location Date Built Price GLA GLA GLA Ratio pancy Sales/sf NOI
====================================================================================================================================
<C> <S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
95-1 Natick Mall Dec-95 1994 $265,000,000 1,160,733 646,733 436,733 37.6% 99.0% $416 $21,311,000
Natick, MA (redevel.)
- ------------------------------------------------------------------------------------------------------------------------------------
95-2 Smith Haven Mall Dec-95 1969/ $221,000,000 1,351,913 813,786 505,626 37.4% 93.0% $420 $16,500,000
Lake Grove, NY 86
- ------------------------------------------------------------------------------------------------------------------------------------
953(1) Capitola Mall Dec-95 1977/ $52,500,000 577,396 577,396 197,396 34.2% 92.0% $262 $4,987,500
Capitola, CA 88
- ------------------------------------------------------------------------------------------------------------------------------------
95-4 Centre at Salisbury Aug-95 1990 $78,000,000 884,825 744,825 278,915 31.5% 89.0% $257 $7,020,000
Salisbury, MD
- ------------------------------------------------------------------------------------------------------------------------------------
95-5 Piedmont Mall Jul-95 1983/ $39,000,000 534,135 409,135 188,049 35.2% - $250 $3,600,000
Danville, VA 84
- ------------------------------------------------------------------------------------------------------------------------------------
95-6 River Oaks Center Jul-95 1978 $26,200,000 574,657 493,791 219,099 38.1% - $200 $2,908,200
Decatur, AL
- ------------------------------------------------------------------------------------------------------------------------------------
95-7 Columbia Mall Jul-95 1998 $27,650,000 351,364 351,364 128,024 36.4% 96.0% $165 $2,958,500
Bloomsberg, PA
- ------------------------------------------------------------------------------------------------------------------------------------
95-8 Hot Springs Mall Jun-95 1982 $22,775,000 389,914 318,033 156,000 40.0% 83.0% $240 $2,277,500
Hot Springs, AR
- ------------------------------------------------------------------------------------------------------------------------------------
95-9 Westgate Mall May-95 1960/ $43,000,000 649,185 448,268 253,993 39.1% 77.9% $191 $4,096,457
San Jose, CA 89
- ------------------------------------------------------------------------------------------------------------------------------------
95-10 Silver City Galleria Apr-95 1992 $159,106,000 1,005,595 749,595 349,107 34.7% 96.0% $290 $13,219,000
East Taunton, MA
- ------------------------------------------------------------------------------------------------------------------------------------
95-11 Westgate Mall Apr-95 1975 $25,300,000 768,000 449,974 272,630 35.5% 85.0% $240 $2,403,500
Spartanburg, SC
- ------------------------------------------------------------------------------------------------------------------------------------
95-12 Hanover Mall Jan-95 1971/ $38,000,000 649,130 649,130 298,531 46.0% 90.0% $204 $3,811,400
Hanover, MA 93
- ------------------------------------------------------------------------------------------------------------------------------------
95-13 Greenbrier Mall Jan-95 1981 $84,700,000 774,201 594,201 318,595 41.2% 96.0% $250 $6,600,000
Chesapeake, VA
- ------------------------------------------------------------------------------------------------------------------------------------
95-14(2) Galleria at Tyler Jan-95 1970/ $123,750,000 1,044,536 431,640 411,640 39.4% 86.0% $244 $9,600,000
Riverside, CA 91
====================================================================================================================================
Survey Low: $22,775,000 351,364 318,033 128,024 31.5% 77.9% $165 $2,277,500
Survey High: $265,000,000 1,351,913 813,786 505,626 46.0% 99.0% $420 $21,311,000
- ------------------------------------------------------------------------------------------------------------------------------------
Survey Mean: $86,141,500 765,399 548,419 286,738 37.6% 90.2% $259 $7,235,218
====================================================================================================================================
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
Capitalization Rates Unit Rate Comparison
-------------------- --------------------
Sale Going-In Terminal Price/GLA Price/Mall Sales
No. Property/Location NOI/sf OAR OAR IRR Purchased Shop GLA Multiple
==============================================================================================================
<C> <S> <C> <C> <C> <C> <C> <C> <C>
95-1 Natick Mall $32.95 8.04% 8.00% 10.75% $410 $607 1.46
Natick, MA
- --------------------------------------------------------------------------------------------------------------
95-2 Smith Haven Mall $20.28 7.47% - - $272 $437 1.04
Lake Grove, NY
- --------------------------------------------------------------------------------------------------------------
953(1) Capitola Mall $8.64 9.50% - - $91 $266 1.02
Capitola, CA
- --------------------------------------------------------------------------------------------------------------
95-4 Centre at Salisbury $9.43 9.00% - - $105 $280 1.09
Salisbury, MD
- --------------------------------------------------------------------------------------------------------------
95-5 Piedmont Mall $8.80 9.23% - - $95 $207 0.83
Danville, VA
- --------------------------------------------------------------------------------------------------------------
95-6 River Oaks Center $5.89 11.10% - - $53 $120 0.60
Decatur, AL
- --------------------------------------------------------------------------------------------------------------
95-7 Columbia Mall $8.42 10.70% - - $79 $216 1.31
Bloomsberg, PA
- --------------------------------------------------------------------------------------------------------------
95-8 Hot Springs Mall $7.16 10.00% - - $72 $146 0.61
Hot Springs, AR
- --------------------------------------------------------------------------------------------------------------
95-9 Westgate Mall $9.14 9.53% - - $96 $169 0.89
San Jose, CA
- --------------------------------------------------------------------------------------------------------------
95-10 Silver City Galleria $17.63 8.31% 8.00% 11.00% $212 $456 1.57
East Taunton, MA
- --------------------------------------------------------------------------------------------------------------
95-11 Westgate Mall $5.34 9.50% - - $56 $93 0.39
Spartanburg, SC
- --------------------------------------------------------------------------------------------------------------
95-12 Hanover Mall $5.87 10.03% - - $59 $127 0.62
Hanover, MA
- --------------------------------------------------------------------------------------------------------------
95-13 Greenbrier Mall $11.11 7.79% 8.00% 11.50% $143 $266 1.06
Chesapeake, VA
- --------------------------------------------------------------------------------------------------------------
95-14(2) Galleria at Tyler $22.24 7.76% 8.00% 10.50% $287 $301 1.23
Riverside, CA
==============================================================================================================
Survey Low: $5.34 7.47% 8.00% 10.50% $53 $93 0.39
Survey High: $32.95 11.10% 8.00% 11.50% $410 $607 1.57
- --------------------------------------------------------------------------------------------------------------
Survey Mean: $12.35 9.14% 8.00% 10.94% $145 $264 0.98
==============================================================================================================
</TABLE>
- ----------
(1) Cash equivlent price.
(2) Net of allocation for excess land. Sale includes cinema.
================================================================================
<PAGE>
<TABLE>
<CAPTION>
===================================================================================================================================
REGIONAL MALL SALES 1994
1994 Transaction Chart
Cushman & Wakefield, Inc.
===================================================================================================================================
Sale Sale Year Total Sold Shop Shop Occu- Shop
No. Property/Location Date Built Sale Price GLA GLA GLA Ratio pancy Sales/sf NOI NOI/sf
===================================================================================================================================
<C> <S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
94 1 Independence Center Dec-94 1974/ $53,400,000 863,986 392,524 392,524 45.4% 84.0% $200 $4,592,000 $11.70
(1) Independence, MO 88
- -----------------------------------------------------------------------------------------------------------------------------------
94 2 Biltmore Fashion Park Dec-94 1963/ $110,000,000 554,503 372,000 219,000 39.5% 97.0% $380 $8,600,000 $23.12
(2) Phoenix, Arizona 92
- -----------------------------------------------------------------------------------------------------------------------------------
94- 3 Confidential Dec-94 1981/ $108,000,000 1,123,580 333,468 333,468 29.7% 95.0% $300 $7,538,400 $22.61
Major Southwest MSA 93
- -----------------------------------------------------------------------------------------------------------------------------------
94 4 CPI Portfolio Dec-94 $151,500,000 2,110,051 1,142,386 750,436 35.6% 90.0% $250 $13,350,000 $11.69
(3) 1) Orange Park Mall 1975/
Orange Park, Florida 91
2) University Mall 1974/
Pensacola, Florida 90
3) Broadway Square Mall 1975/
Tyler, Texas 89
- -----------------------------------------------------------------------------------------------------------------------------------
94- 5 Fashion Valley Center Nov-94 1969/ $128,500,000 1,370,262 518,900 373,725 27.3% 91.0% $325 $9,637,500 $18.57
San Diego, California 81/84
- -----------------------------------------------------------------------------------------------------------------------------------
94- 6 Mall of the Americas Oct-94 1970/ $76,200,000 678,000 678,000 225,000 33.2% 98.5% $325 $6,706,000 $9.89
Miami, Florida 93+
- -----------------------------------------------------------------------------------------------------------------------------------
94 7 Corte Madera T.C. Sep-94 1958/ $70,500,000 425,572 425,572 237,453 55.8% 93.5% $325 $5,900,000 $13.86
(4) Marin County, California 85
- -----------------------------------------------------------------------------------------------------------------------------------
94- 8 Layton Hills Mall Sep-94 1980/ $51,375,000 710,030 620,030 399,001 56.2% 94.0% $226 $4,730,000 $7.63
Layton, Utah 91
- -----------------------------------------------------------------------------------------------------------------------------------
94- 9 North Shore Square Jul-94 1985 $34,150,000 624,000 358,709 178,326 28.6% 94.0% $218 $3,073,000 $8.57
Slidell, Louisiana
- -----------------------------------------------------------------------------------------------------------------------------------
94 10 Chesterfield T.C. Jun-94 1986/ $93,600,000 605,161 605,161 291,744 48.2% 95.0% $290 $8,424,000 $13.92
(5) Richmond, Virgina 87/89
- -----------------------------------------------------------------------------------------------------------------------------------
94- 11 Waterside Shops Jun-94 1992 $65,500,000 250,000 250,000 173,930 69.6% 99.0% $400 $5,043,500 $20.17
Naples, Florida
- -----------------------------------------------------------------------------------------------------------------------------------
94- 12 Crossroads Mall Apr-94 1974 $51,500,000 1,114,720 378,704 378,704 34.0% 95.0% $189 $5,300,000 $14.00
Oklahoma City, Oklahoma
- -----------------------------------------------------------------------------------------------------------------------------------
94- 13 Riverchase Galleria Feb-94 1986 $175,000,000 1,251,142 462,612 350,504 28.0% 95.0% $350 $13,295,000 $28.74
Hoover, Alabama
- -----------------------------------------------------------------------------------------------------------------------------------
94 14 Stratford Square Mall Jan-94 1981/ $119,000,000 1,294,682 493,404 493,404 38.1% 98.5% $260 $8,962,500 $18.16
Bloomingdale, Illinois 88/91
===================================================================================================================================
Survey Low: $34,150,000 250,000 250,000 173,930 27.3% 84.0% $189 $3,073,000 $7.63
Survey High: $175,000,000 2,110,051 1,142,386 750,436 69.6% 99.0% $400 $13,350,000 $28.74
- -----------------------------------------------------------------------------------------------------------------------------------
Survey Mean: $92,016,071 926,835 502,248 342,659 40.6% 94.3% $288 $7,610,850 $15.90
===================================================================================================================================
<CAPTION>
=============================================================================================
Capitalization Rates Unit Rate Comparison
-------------------- ---------------------
Sale Going-in Terminal Price/GLA Price/Mall Sales
No. Property/Location OAR OAR IRR Purchased Shop GLA Multiple
=============================================================================================
<C> <S> <C> <C> <C> <C> <C> <C>
94 1 Independence Center 8.60% - - $136 $136 0.68
(1) Independence, MO
- ---------------------------------------------------------------------------------------------
94 2 Biltmore Fashion Park 7.82% - - $296 $502 1.32
(2) Phoenix, Arizona
- ---------------------------------------------------------------------------------------------
94- 3 Confidential 6.98% 7.25% 10.70% $324 $324 1.08
Major Southwest MSA
- ---------------------------------------------------------------------------------------------
94 4 CPI Portfolio 8.81% - - $133 $202 0.81
(3) 1) Orange Park Mall
Orange Park, Florida
2) University Mall
Pensacola, Florida
3) Broadway Square Mall
Tyler, Texas
- ---------------------------------------------------------------------------------------------
94- 5 Fashion Valley Center 7.50% 8.00% 11.00% $248 $344 1.06
San Diego, California
- ---------------------------------------------------------------------------------------------
94- 6 Mall of the Americas 8.80% - 11.80% $112 $339 1.04
Miami, Florida
- ---------------------------------------------------------------------------------------------
94 7 Corte Madera T.C. 8.37% 9.00% 11.00% $166 $297 0.91
(4) Marin County, California
- ---------------------------------------------------------------------------------------------
94- 8 Layton Hills Mall 9.21% - - $83 $129 0.57
Layton, Utah
- ---------------------------------------------------------------------------------------------
94- 9 North Shore Square 9.00% - - $95 $192 0.88
Slidell, Louisiana
- ---------------------------------------------------------------------------------------------
94 10 Chesterfield T.C. 9.00% - - $155 $321 1.11
(5) Richmond, Virgina
- ---------------------------------------------------------------------------------------------
94- 11 Waterside Shops 7.70% - - $262 $377 0.94
Naples, Florida
- ---------------------------------------------------------------------------------------------
94- 12 Crossroads Mall 10.29% - - $136 $136 0.72
Oklahoma City, Oklahoma
- ---------------------------------------------------------------------------------------------
94- 13 Riverchase Galleria 7.60% - 11.50% $378 $499 1.43
Hoover, Alabama
- ---------------------------------------------------------------------------------------------
94 14 Stratford Square Mall 7.53% 8.25% 11.00% $241 $241 0.93
Bloomingdale, Illinois
=============================================================================================
Survey Low: 6.98% 7.25% 10.70% $83 $129 0.57
Survey High: 10.29% 9.00% 11.80% $378 $502 1.43
- ---------------------------------------------------------------------------------------------
Survey Mean: 8.37% 8.13% 11.17% $197 $288 0.96
=============================================================================================
</TABLE>
- ----------
(1) Inclusive of $2.4 million held back for deferred maintenance.
(2) Inclusive of partnership units.
(3) Net of allocation to excess land.
(4) Sale includes 75,712 square foot professional building.
(5) Adjusted to reflect 100% interest.
================================================================================
<PAGE>
<TABLE>
<CAPTION>
========================================================================================================================
MALL SHOP TENANTS BY SIZE
Golden East Crossing (Rocky Mount, North Carolina)
Cushman & Wakefield, Inc.
- ------------------------------------------------------------------------------------------------------------------------
Lease Initial Initial Final Final % Change Rent in Rent
Tenant Category Term Area Annual Rent/ Annual Rent/ In Rent Place CY 1996/
(By Size/Area) (Yrs) (Sq/Ft) Rent Sq/Ft Rent Sq/Ft Over Term CY 1996 Sq/Ft
========================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
County Seat (03/87) 10.0 3,238 $35,618 $11.00 $35,618 $11.00 0.0% $35,618 $11.00
Kinney Shoes (08/86) 10.0 3,299 $49,485 $15.00 $49,485 $15.00 0.0% $49,485 $15.00
D.A. Kelly's (09/93) 4.9 3,500 $43,750 $12.50 $43,750 $12.50 0.0% $43,750 $12.50
-------------------- --- ----- ------- ------ ------- ------ ---- ------- ------
Subtotal: 19 10.6 53,116 $768,084 $14.46 $841,661 $15.85 9.6% $768,084 $14.46
- ------------------------------------------------------------------------------------------------------------------------
5. Tenants 3501-5000 sf
- -----------------------
Victoria's Secret (07/95) 12.0 3,539 $56,624 $16.00 $63,702 $18.00 12.5% $56,624 $16.00
American Eagle (08/95) 9.9 3,883 $62,128 $16.00 $62,128 $16.00 0.0% $62,128 $16.00
Hallmark(11/96) 9.9 4,229 $76,122 $18.00 $76,122 $18.00 0.0% $76,122 $18.00
Durham Sporting GD (08/86) 10.0 4.809 $57,708 $12.00 $57,708 $12.00 0.0% $57,708 $12.00
Rack Room Shoes (02/96) 10.1 4,833 $67,662 $14.00 $86,944 $17.99 28.5% $67,662 $14.00
The Limited (08/86) 12.0 4,887 $75,015 $15.35 $75,015 $15.35 0.0% $75,015 $15.35
Lerner Shop (08/86) 12.0 4,970 $59,640 $12.00 $59,640 $12.00 0.0% $59,640 $12.00
------------------- ---- ----- ------- ------ ------- ------ ---- ------- ------
Subtotal: 7 10.8 31,150 $454,899 $14.60 $481,259 $15.45 5.8% $454,899 $14.60
- ------------------------------------------------------------------------------------------------------------------------
6. Tenants 5001-10000 sf
- ------------------------
Lane Bryant (08/86) 12.0 5,189 $57,079 $11.00 $57,079 $11.00 0.0% $57,079 $11.00
Limited Express (02/88) 12.0 5,204 $83,264 $16.00 $83,264 $16.00 0.0% $83.264 $16.00
Record Town (10/96) 9.9 5,452 $32,292 $5.92 $32,292 $5.92 0.0% $32,292 $5.92
Champs Sports (12/93) 10.0 6,052 $72,624 $12.00 $84,728 $14.00 16.7% $72,624 $12.00
Cato(08/86) 10.4 6,137 $61,370 $10.00 $61,370 $10.00 0.0% $61,370 $10.00
Rex Radio & Telev. (05/94) 5.0 8,466 $42,499 $5.02 $42,499 $5.02 0.0% $42,499 $5.02
-------------------------- --- ----- ------- ----- ------- ----- ---- ------- -----
Subtotal: 6 9.9 36,500 $349,128 $9.57 $361,232 $9.90 3.5% $349,128 $9.57
- ------------------------------------------------------------------------------------------------------------------------
7. Tenants > 10000 sf
- ---------------------
Cannike Cinemas (10/87) 20.0 17,474 $250,053 $14.31 $300,029 $17.17 20.0% $250,053 $14.31
----------------------- ---- ------ -------- ------ -------- ------ ----- -------- ------
Subtotal: 1 20.0 17,474 $250,053 $14.31 $300,029 $17.17 20.0% $250,053 $14.31
*Percentage Rent
========================================================================================================================
Survey Total: 66 13.4 174,164 $2,582,688 $14.83 $2,797,576 $16.06 8.3% $2,587,688 $14.86
========================================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
================================================================================================================
RECENT LEASING ACTIVITY - Mall Shop Tenants By Size
Golden East Crossing (Rocky Mounty, North Carolina)
Cushman & Wakefield, Inc.
- ----------------------------------------------------------------------------------------------------------------
Lease Initial Initial Final Final % Change
Tenant Category Term Area Annual Rent/ Annual Rent/ In Rent
(By Size/Area) (Yrs) (Sq/Ft) Rent Sq/Ft Rent Sq/Ft Over Term
================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
1. Tenants < 750 sf
- --------------------
Sunglass Hut (01/95) 9.9 440 $24,998 $56.81 $24,998 $56.81 0.0%
Christy's (01/95) MTM 600 $18,744 $31.24 $18,744 $31.24 0.0%
Keep In Touch (01/96) MTM 714 $9,000 $12.61 $9,000 $12.61 0.0%
--------------------- --- --- ------ ------ ------ ------ ----
Subtotal: 3 9.9 1,754 $52,742 $30.07 $52,742 $30.07 0.0%
- ----------------------------------------------------------------------------------------------------------------
2. Tenants 751-1200 sf
- ------------------------
Afterthoughts (01/95) 9.9 948 $22,000 $23.21 $22,000 $23.21 0.0%
VIP Formal Wear (08/95) MTM 1,044 $7,200 $6.90 $7,200 $6.90 0.0%
----------------------- --- ----- ------ ----- ------ ----- ----
Subtotal: 2 9.9 1,992 $29,200 $14.66 $29,200 $14.66 0.0%
- ----------------------------------------------------------------------------------------------------------------
3. Tenants 1201-2000 sf
- -------------------------
Dokar (01/96) MTM 1,311 $9,600 $7.32 $9,600 $7.32 0.0%
Kids Footlocker (11/95) 9.7 1,752 $43,800 $25.00 $43,800 $25.00 0.0%
----------------------- --- ----- ------- ------ ------- ------ ----
Subtotal: 2 9.7 3,063 $53,400 $17.43 $53,400 $17.43 0.0%
- ----------------------------------------------------------------------------------------------------------------
4. Tenants 2001-3500 sf
- -------------------------
Bath & Body (11/96) 9.9 2,247 $38,199 $17.00 $38,199 $17.00 0.0%
Briar Patch (11/95) 9.9 2,940 $41,160 $14.00 $47,040 $16.00 14.3%
Hungate Crafts (09/96) 9.9 2,982 $35,784 $12.00 $35,784 $12.00 0.0%
---------------------- --- ----- ------- ------ ------- ------ ----
Subtotal: 3 9.9 8,169 $115,143 $14.10 $121,023 $14.81 5.1%
- ----------------------------------------------------------------------------------------------------------------
5. Tenants 3501-5000 sf
- -------------------------
Victoria's Secret (07/95) 12.0 3,539 $56,624 $16.00 $63,702 $18.00 12.5%
American Eagle (08/95) 9.9 3,883 $62,127 $16.00 $62,127 $16.00 0.0%
Hallmark (11/96) 9.9 4,229 $76,122 $18.00 $76,122 $18.00 0.0%
Rack Room Shoes (02/96) 10.1 4,833 $67,668 $14.00 $87,003 $18.00 28.6%
----------------------- ---- ----- ------- ------ ------- ------ -----
Subtotal: 4 10.5 16,484 $262,541 $15.93 $288,954 $17.53 10.1%
- ----------------------------------------------------------------------------------------------------------------
6. Tenants 5001-10000 sf
- -------------------------
Record Town (10/96) 9.9 5,452 $32,292 $5.92 $32,292 $5.92 0.0%
------------------- --- ----- ------- ----- ------- ----- ----
Subtotal: 1 9.9 5,452 $32,292 $5.92 $32,292 $5.92 0.0%
================================================================================================================
Survey Total: 15 8.5 36,914 $545,318 $14.77 $577,611 $15.65 5.9%
================================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
======================================================================================================================
MALL SHOP TENANTS BY SIZE
Golden East Crossing (Rocky Mount, North Carolina)
Cushman & Wakefield, Inc.
- ----------------------------------------------------------------------------------------------------------------------
Lease Initial Initial Final Final % Change Rent in Rent
Tenant Category Term Area Annual Rent/ Annual Rent/ In Rent Place CY 1996/
(By Size/Area) (Yrs) (Sq/Ft) Rent Sq/Ft Rent Sq/Ft Over Term CY 1996 Sq/Ft
======================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1. Tenants < 750 sf
- -------------------
Sunglass Hut (01/95) 9.9 451 $24,999 $55.43 $24,999 $55.43 0.0% $24,999 $55.43
Lee Nails (09/94) 4.9 579 $18,001 $31.09 $18,001 $31.09 0.0% $18,001 $31.09
Christy's (01/95) MTM 600 $18,744 $31.24 $18,744 $31.24 0.0% $18,744 $31.24
Gr. Amer. Chocalat (08/86) 20.0 624 $24,960 $40.00 $30,002 $48.08 20.2% $24,960 $40.00
Gigi's Boutique (12/86) 63.0 648 $12,960 $20.00 $12,960 $20.00 0.0% $12,960 $20.00
Keep in Touch (01/96) MTM 714 $8,996 $12.60 $8,996 $12.60 0.0% $8,996 $12.60
Claire's Btque (10/86) 9.9 729 $14,580 $20.00 $14,580 $20.00 0.0% $14,580 $20.00
---------------------- --- --- ------- ------ ------- ------ ---- ------- ------
Subtotal: 7 21.6 4,345 $123,240 $28.36 $128,282 $29.52 4.1% $123,240 $28.36
- ----------------------------------------------------------------------------------------------------------------------
2. Tenants 751-1200 sf
- ----------------------
Regis Hairstylist (08/86) 10.0 810 $20,250 $25.00 $25,250 $31.17 24.7% $25,250 $31.17
Electronics Btque (08/91) 10.2 810 $24,000 $29.63 $26,000 $32.10 8.3% $24,000 $29.63
Carousel Children (08/94) MTM 810 $7,493 $9.25 $7,493 $9.25 0.0% $7,493 $9.25
Gold Valley (07/87) 10.0 832 $30,784 $37.00 $30,784 $37.00 0.0% $30,784 $37.00
Stride-Rite (03/87) 10.8 942 $13,188 $14.00 $13,188 $14.00 0.0% $13,188 $14.00
Afterthoughts (01/95) 9.9 948 $22,003 $23.21 $22,003 $23.21 0.0% $22,003 $23.21
Bailey's Jewelers (08/86) 20.4 967 $43,515 $45.00 $58,020 $60.00 33.3% $43,515 $45.00
Jewel Box (08/86) 20.3 1,035 $36,225 $35.00 $51,750 $50.00 42.9% $36,225 $35.00
Picture You/One (09/93) 4.9 1,038 $25,950 $25.00 $28,026 $27.00 8.0% $25,950 $25.00
VIP Formal Wear (08/95) MTM 1,044 $7,673 $7.35 $7,673 $7.35 0.0% $7,673 $7.35
General Nutrition (03/91) 9.9 1,058 $19,996 $18.90 $19,996 $18.90 0.0% $19,996 $18.90
Sugar Foot (11/86) 10.0 1,068 $17,088 $16.00 $17,088 $16.00 0.0% $17,088 $16.00
Lady Footlocker (04/89) 9.9 1,148 $22,960 $20.00 $22,960 $20.00 0.0% $22,960 $20.00
Reeds Jewelers (08/86) 10.3 1,200 $47,496 $39.58 $47,496 $39.58 0.0% $47,496 $39.58
Nauturalizer (03/88) 10.0 1,200 $19,200 $16.00 $19,200 $16.00 0.0% $19,200 $16.00
-------------------- ---- ----- ------- ------ ------- ------ ---- ------- ------
Subtotal: 15 11.3 14,910 $357,821 $24.00 $396,927 $26.62 10.9% $382,821 $24.33
- ----------------------------------------------------------------------------------------------------------------------
3. Tenants 1201-2000 sf
- -----------------------
Lernstone Books (10/89) 9.9 1,243 $18,645 $15.00 $22,374 $18.00 20.0% $18,645 $15.00
Doll'n Bear (10/94) MTM 1,267 $10,922 $8.62 $10,922 $8.62 0.0% $10,922 $8.62
Doker (01/96) MTM 1,311 $10,200 $7.78 $10,200 $7.78 0.0% $10,200 $7.78
Tik (08/86) 13.3 1,420 $35,514 $25.01 $35,514 $25.01 0.0% $35,514 $25.01
Lady's Choice (10/91) 5.0 1,445 $14,450 $10.00 $14,450 $10.00 0.0% $14,450 $10.00
Cannon's Mens wear (12/86) 9.9 1,510 $15,100 $10.00 $15,100 $10.00 0.0% $15,100 $10.00
Ups 'n Downs (05/87) 9.9 1,561 $16,375 $10.49 $16,375 $10.49 0.0% $16,375 $10.49
Friedman's Jeweler (11/89) 10.0 1,631 $50,006 $30.66 $55,000 $33.72 10.0% $50,006 $30.66
Chick Fil-A (08/86) 12.0 1,704 $25,560 $15.00 $25,560 $15.00 0.0% $25,560 $15.00
Kids Footlocker (11/95) 9.7 1,752 $43,800 $25.00 $43,800 $25.00 0.0% $43,800 $25.00
Bombay Co. (09/87) 10.0 1,825 $38,891 $21.31 $38,891 $21.31 0.0% $38,891 $21.31
------------------ ---- ------ ------- ------ ------- ------ ---- ------- ------
Subtotal: 11 10.0 16,669 $279,463 $16.77 $288,186 $17.29 3.1% $279,463 $16.77
- ----------------------------------------------------------------------------------------------------------------------
4. Tenants 2001-3500 sf
- -----------------------
Disc Jockey (08/86) 10.0 2,052 $37,620 $18.33 $37,620 $18.33 0.0% $37,620 $18.33
Bath & Body (11/96) 9.9 2,247 $38,199 $17.00 $38,199 $17.00 0.0% $38,199 $17.00
Radio Shack (11/86) 15.0 2,417 $29,004 $12.00 $35,047 $14.50 20.8% $29,004 $12.00
Footlocker (08/86) 20.0 2,420 $43,560 $18.00 $90,000 $37.19 106.6% $43,560 $18.00
Payless Shoesource (08/86) 10.0 2,487 $39,792 $16.00 $39,792 $16.00 0.0% $39,792 $16.00
Waldenbooks (08/86) 10.4 2,535 $44,109 $17.40 $44,109 $17.40 0.0% $44,109 $17.40
The Finish Line (08/90) 10.2 2,605 $52,100 $20.00 $57,310 $22.00 10.0% $52,100 $20.00
Amy's Hallmark (11/86) 10.2 2,619 $41,904 $16.00 $41,904 $16.00 0.0% $41,904 $16.00
Eye Care Center (10/91) 10.0 2,779 $36,127 $13.00 $46,131 $16.60 27.7% $36,127 $13.00
Shoe Show (08/86) 10.0 2,868 $30,114 $10.50 $30,114 $10.50 0.0% $30,114 $10.50
Briar Patch (11/95) 9.9 2,940 $41,160 $14.00 $47,040 $16.00 14.3% $41,160 $14.00
Kay-Bee Toy (08/86) 10.0 2,972 $44,580 $15.00 $44,580 $15.00 0.0% $44,580 $15.00
Hungate Crafts (09/96) 9.9 2,982 $35,784 $12.00 $35,784 $12.00 0.0% $35,784 $12.00
Fine's Men Wear (10/86) 10.0 3,020 $36,240 $12.00 $36,240 $12.00 0.0% $36,240 $12.00
Merry-Go-Round (09/90) 10.3 3,034 $45,510 $15.00 $45,510 $15.00 0.0% $45,510 $15.00
Hofheimer's Expre (11/86) 10.2 3,102 $43,428 $14.00 $43,428 $14.00 0.0% $43,428 $14.00
======================================================================================================================
</TABLE>
<PAGE>
GOLDEN EAST CROSSING, ROCKY MOUNT, INC
ANNUAL CASH FLOW REPORT
BEGINNING 6/1/96 FOR 13 YEARS
5/20/96 @ 11:05
<TABLE>
<CAPTION>
FY1997 FY1998 FY1999 FY2000 FY2001 FY2002 FY2003
<S> <C> <C> <C> <C> <C> <C> <C>
INCOME
- ------
MINIMUM RENT:
ALL TENANTS 3,579,202 4,114,489 4,270,222 4,401,484 4,449,504 4,517,558 4,633,996
FREE RENT ( 169,937) ( 116,339) ( 15,916) 0 0 0 0
--------- --------- --------- --------- --------- --------- ---------
TOTAL MINIMUM RENT 3,409,265 3,998,150 4,254,306 4,401,484 4,449,505 4,517,558 4,633,996
RECOVERIES:
CAN-MALL SHOPS 1,142,830 1,278,876 1,287,434 1,297,013 1,339,561 1,375,044 1,428,320
TAX-MALL SHOPS 188,671 214,893 221,523 228,182 235,790 240,959 247,177
FCT-FOOD COURT 27,636 31,916 31,970 34,191 35,386 36,624 37,907
CAM-ANCHOR TENANTS 141,014 143,377 146,503 147,036 156,822 170,322 172,779
TAX-ANCHOR TENANTS 85,467 90,887 96,501 102,308 108,320 114,543 120,982
--------- --------- --------- --------- --------- --------- ---------
TOTAL RECOVERIES 1,585,618 1,759,949 1,783,931 1,808,730 1,875,879 1,937,492 2,007,165
OVERAGE RENT 370,654 333,592 309,305 306,806 331,957 356,700 388,100
SALES VOLUME (000) 59,783 62,625 63,792 66,298 68,372 70,449 72,944
--------- --------- --------- --------- --------- --------- ---------
GROSS RENTAL
INCOME 5,365,537 6,091,691 6,347,542 6,517,020 6,657,340 6,811,750 7,029,261
CREDIT LOSS ( 134,138) ( 152,292) ( 158,689) ( 162,925) ( 166,433) ( 170,294) ( 175,731)
WATER/SEWER 35,292 35,998 36,717 37,452 38,201 38,965 39,744
MISCELLANEOUS 70,583 71,995 73,435 74,904 76,402 77,930 79,488
--------- --------- --------- --------- --------- --------- ---------
TOTAL INCOME 5,337,274 6,047,392 6,299,005 6,466,451 6,605,510 6,758,351 6,972,762
EXPENSES
- --------
COMMON AREA MAINT. 1,131,989 1,171,609 1,212,615 1,255,056 1,298,983 1,344,447 1,391,503
REAL ESTATE TAXES 295,361 305,699 316,399 327,472 338,934 350,797 363,075
FOOD COURT EXPENSE 26,815 27,754 28,725 29,731 30,771 31,848 32,963
GENERAL & ADMIN. 90,637 93,809 97,092 100,491 104,008 107,648 111,416
MARKETING EXPENSE 39,555 40,939 42,372 43,855 45,390 46,978 48,623
MISCELLANEOUS 30,438 31,503 32,605 33,747 34,928 36,150 37,415
MANAGEMENT FEE 113,398 129,953 136,909 141,249 143,444 146,228 150,663
--------- --------- --------- --------- --------- --------- ---------
TOTAL EXPENSES 1,728,193 1,801,266 1,866,717 1,931,601 1,996,458 2,064,096 2,135,658
NET OPERATING
INCOME 3,609,081 4,246,126 4,432,288 4,534,850 4,609,052 4,694,255 4,837,104
ALTERATIONS 339,615 130,353 109,766 97,470 34,997 32,485 0
COMMISSIONS 115,219 49,824 48,848 41,351 16,240 14,564 0
REPL'MENT RESERVE 91,991 95,211 98,543 101,993 105,562 109,257 113,081
CAPITAL REPAIRS 100,000 100,000 100,000 100,000 100,000 100,000 100,000
--------- --------- --------- --------- --------- --------- ---------
CASH FLOW 2,962,256 3,870,738 4,075,131 4,194,036 4,352,253 4,437,949 4,624,023
<CAPTION>
FY2004 FY2005 FY2006 FY2007 FY2008 FY2009
<S> <C> <C> <C> <C> <C> <C>
INCOME
- ------
MINIMUM RENT:
ALL TENANTS 4,676,511 4,719,991 4,726,462 4,680,909 5,119,869 5,295,040
FREE RENT 0 0 0 0 0 0
--------- --------- --------- --------- --------- ---------
TOTAL MINIMUM RENT 4,676,511 4,719,991 4,726,462 4,680,909 5,119,869 3,295,040
RECOVERIES:
CAN-MALL SHOPS 1,475,511 1,546,143 1,606,407 1,610,399 1,721,182 1,772,072
TAX-MALL SHOPS 252,415 261,025 266,650 261,380 275,890 285,898
FCT-FOOD CWRT 39,234 40,607 39,815 41,911 43,906 44,116
CAM-ANCHOR TENANTS 176,002 176,635 183,609 193,135 195,702 199,040
TAX-ANCHOR TENANTS 127,647 134,545 141,686 149,076 156,725 164,641
--------- --------- --------- --------- --------- ---------
TOTAL RECOVERIES 2,070,809 2,158,955 2,238,167 2,255,901 2,393,405 2,465,767
OVERAGE RENT 423,242 460,922 494,614 444,492 390,982 422,903
SALES VOLUME (000) 74,897 77,321 79,150 78,920 83,614 85,908
--------- --------- --------- --------- --------- ---------
GROSS RENTAL
INCOME 7,170,562 7,339,868 7,459,243 7,381,302 7,904,256 8,183,710
CREDIT LOSS ( 179,264) ( 183,497) ( 186,481) ( 184,533) ( 197,606) ( 204,593)
WATER/SEWER 40,539 41,350 42,177 43,020 43,881 44,758
MISCELLANEOUS 81,078 82,700 84,354 86,041 87,761 89,517
--------- --------- --------- --------- --------- ---------
TOTAL INCOME 7,112,915 7,280,421 7,399,293 7,325,830 7,838,292 8,113,392
EXPENSES
- --------
COMMON AREA MAINT. 1,440,206 1,490,613 1,542,784 1,596,782 1,652,669 1,710,512
REAL ESTATE TAXES 375,782 388,935 402,547 416,636 431,219 446,311
FOOD COURT EXPENSE 34,117 35,311 36,547 37,826 39,150 40,520
GENERAL & ADMIN. 115,315 119,351 123,529 127,852 132,327 136,958
MARKETING EXPENSE 50,324 52,086 53,909 55,796 57,748 59,770
MISCELLANEOUS 38,725 40,080 41,483 42,935 44,438 45,993
MANAGEMENT FEE 152,993 155,428 156,632 153,762 165,326 171,538
--------- --------- --------- --------- --------- ---------
TOTAL EXPENSES 2,207,462 2,281,804 2,357,431 2,431,589 2,522,877 2,611,602
--------- --------- --------- --------- --------- ---------
NET OPERATING
INCOME 4,905,453 4,998,617 5,041,862 4,894,241 5,315,415 5,501,790
ALTERATIONS 35,065 5,685 62,323 401,932 360,255 169,224
COMMISSIONS 14,676 2,299 25,909 173,678 151,334 67,828
REPL'MENT RESERVE 117,039 121,135 125,375 129,763 134,305 139,005
CAPITAL REPAIRS 100,000 100,000 100,000 100,000 100,000 100,000
--------- --------- --------- --------- --------- ---------
CASH FLOW 4,638,673 4,769,498 4,728,255 4,088,868 4,569,521 5,025,733
</TABLE>
<PAGE>
GOLDEN EAST CROSSING, ROCKY MOUNT, INC.
ANNUAL CASH FLOW REPORT
BEGINNING 1/1/96 FOR 13 YEARS
5/20/96 @ 10:16
<TABLE>
<CAPTION>
CY1996 CY1997 CY1998 CY1999 CY2000 CY2001 CY2002 CY2003 CY2004
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INCOME
- ------
MINIMUM RENT:
ALL TENANTS 3,373,721 3,956,820 4,213,502 4,381,353 4,424,930 4,470,300 4,598,780 4,669,379 4,700,121
FREE RENT (55,516) (188,446) (58,230) 0 0 0 0 0 0
--------- --------- --------- --------- --------- --------- --------- --------- ---------
TOTAL MINIMUM RENT 3,318,205 3,768,374 4,155,272 4,381,353 4,424,930 4,470,300 4,598,780 4,669,379 4,700,121
RECOVERIES:
CAM-MALL SHOPS 1,107,029 1,231,993 1,291,922 1,288,336 1,324,192 1,353,130 1,406,566 1,456,686 1,513,199
TAX-MALL SHOPS 181,530 205,860 218,764 226,708 232,847 238,537 244,501 250,571 256,885
FCT-FOOD COURT 26,837 30,332 31,495 33,698 34,880 36,099 37,364 38,670 40,024
CAM-ANCHOR TENANTS 140,809 141,299 146,285 146,810 147,353 170,080 170,662 175,742 176,366
TAX-ANCHOR TENANTS 83,239 88,584 94,114 99,840 105,764 111,898 118,245 124,814 131,614
--------- --------- --------- --------- --------- --------- --------- --------- ---------
TOTAL RECOVERIES 1,539,444 1,698,068 1,782,580 1,795,392 1,845,036 1,909,744 1,977,338 2,046,483 2,118,088
OVERAGE RENT 407,217 324,202 312,666 302,874 323,509 344,401 373,898 408,450 443,699
SALES VOLUME (000) 60,097 61,159 63,022 65,616 67,388 69,462 71,985 74,205 76,196
--------- --------- --------- --------- --------- --------- --------- --------- ---------
GROSS RENTAL
INCOME 5,264,866 5,790,644 6,250,518 6,479,619 6,593,475 6,724,445 6,950,016 7,124,312 7,261,908
CREDIT LOSS (131,621) (144,766) (156,263) (161,990) (164,837) (168,111) (173,750) (178,108) (181,548)
WATER/SEWER 35,000 35,700 36,414 37,142 37,885 38,643 39,416 40,204 41,008
MISCELLANEOUS 70,000 71,400 72,828 74,285 75,770 77,286 78,831 80,408 82,016
--------- --------- --------- --------- --------- --------- --------- --------- ---------
TOTAL INCOME 5,238,245 5,752,978 6,203,497 6,429,056 6,542,293 6,672,263 6,894,513 7,066,816 7,203,384
EXPENSES
- --------
COMMON AREA MAINT. 1,115,718 1,154,768 1,195,185 1,237,016 1,280,312 1,325,123 1,371,502 1,419,505 1,469,187
REAL ESTATE TAXES 291,116 301,305 311,851 322,765 334,062 345,754 357,856 370,381 383,344
FOOD COURT EXPENSE 26,430 27,355 28,312 29,303 30,329 31,391 32,489 33,626 34,803
GENERAL & ADMIN. 89,334 92,461 95,697 99,046 102,513 106,101 109,814 113,658 117,636
MARKETING EXPENSE 38,986 40,351 41,763 43,224 44,737 46,303 47,924 49,601 51,337
MISCELLANEOUS 30,000 31,050 32,137 33,262 34,426 35,631 36,878 38,168 39,504
MANAGEMENT FEE 111,763 122,777 134,038 140,527 142,453 144,441 149,180 152,335 154,315
--------- --------- --------- --------- --------- --------- --------- --------- ---------
TOTAL EXPENSES 1,703,347 1,770,067 1,838,983 1,905,143 1,968,832 2,034,744 2,105,643 2,177,274 2,250,126
--------- --------- --------- --------- --------- --------- --------- --------- ---------
NET OPERATING
INCOME 3,534,898 3,982,911 4,364,514 4,523,913 4,573,461 4,637,519 4,788,870 4,889,542 4,953,258
ALTERATIONS 184,837 188,733 202,393 59,560 41,681 34,997 32,485 0 35,065
COMMISSIONS 44,247 86,629 81,392 25,639 17,335 16,240 14,564 0 14,676
REPL'MENT RESERVE 91,991 95,211 98,543 101,993 105,562 109,257 113,081 117,039 121,135
CAPITAL REPAIRS 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000
--------- --------- --------- --------- --------- --------- --------- --------- ---------
CASH FLOW 3,113,823 3,512,338 3,882,186 4,236,721 4,308,883 4,377,025 4,528,740 4,672,503 4,682,382
</TABLE>
CY2005 CY2006 CY2007 CY2008
INCOME
- ------
MINIMUM RENT:
ALL TENANTS 4,710,469 4,675,497 4,949,480 5,198,123
FREE RENT 0 0 0 0
--------- --------- --------- ---------
TOTAL MINIMUM RENT 4,710,469 4,675,497 4,949,480 5,198,123
RECOVERIES:
CAM-MALL SHOPS 1,571,690 1,617,061 1,679,714 1,740,085
TAX-MALL SHOPS 263,188 265,649 267,875 281,015
FCT-FOOD COURT 39,208 42,874 41,669 45,928
CAM-ANCHOR TENANTS 177,011 192,847 193,538 198,731
TAX-ANCHOR TENANTS 138,651 145,935 153,473 161,277
--------- --------- --------- ---------
TOTAL RECOVERIES 2,189,748 2,264,366 2,336,269 2,427,036
OVERAGE RENT 483,935 494,395 380,640 411,159
SALES VOLUME (000) 78,101 79,827 80,845 84,753
--------- --------- --------- ---------
GROSS RENTAL
INCOME 7,384,152 7,434,258 7,666,389 8,036,318
CREDIT LOSS (184,604) (185,856) (191,659) (200,908)
WATER/SEWER 41,828 42,665 43,518 44,388
MISCELLANEOUS 83,656 85,330 87,036 88,777
--------- --------- --------- ---------
TOTAL INCOME 7,325,032 7,376,397 7,605,284 7,968,575
EXPENSES
- --------
COMMON AREA MAINT. 1,520,609 1,573,830 1,628,914 1,685,926
REAL ESTATE TAXES 396,761 410,648 425,020 439,896
FOOD COURT EXPENSE 36,021 37,282 38,587 39,938
GENERAL & ADMIN. 121,753 126,014 130,425 134,990
MARKETING EXPENSE 53,134 54,994 56,918 58,910
MISCELLANEOUS 40,887 42,318 43,799 45,332
MANAGEMENT FEE 155,832 155,097 159,904 168,279
--------- --------- --------- ---------
TOTAL EXPENSES 2,324,997 2,400,183 2,483,567 2,573,271
--------- --------- --------- ---------
NET OPERATING
INCOME 5,000,035 4,976,214 5,121,717 5,395,304
ALTERATIONS 49,761 125,964 454,837 213,874
COMMISSIONS 20,123 55,812 194,713 88,463
REPL'MENT RESERVE 125,375 129,763 134,305 139,005
CAPITAL REPAIRS 100,000 100,000 100,000 100,000
--------- --------- --------- ---------
CASH FLOW 4,704,776 4,564,675 4,237,862 4,853,962
<PAGE>
================================================================================
AVERAGE MALL SHOP RENT CALCULATION
Golden East Crossing (Rocky Mount, North Carolina)
Cushman & Wakefield, Inc.
- --------------------------------------------------------------------------------
Suite Size Applicable Pro-Rata Initial Weighted
Category Sq/Ft Share Market Rent Average
================================================================================
- ------------------
In-Line Mall Shops
- ------------------
Under - 750 SF 4,785 SF 2.53% $30.00 $0.76
751 - 1,200 SF 14,910 SF 7.87% $25.00 $1.97
1,201 - 2,000 SF 18,542 SF 9.79% $20.00 $1.96
2,001 - 3,500 SF 61,682 SF 32.57% $15.00 $4.88
3,501 - 5,000 SF 35,511 SF 18.75% $15.00 $2.81
5,001 - 10,000 SF 36,500 SF 19.27% $10.00 $1.93
Over - 10,000 SF 17,474 SF 9.23% $8.00 $0.74
================================================================================
Leasable Mall Shop Space 189,404 SF 100.00%
Percentage of Owned and 43.85%
Leasable GLA*
Mall Shop Average Rent: $15.05
*12+/- percent of physical
mall shop space considered
non-leasable throughout
holding period
================================================================================
================================================================================
Other Components Sq/Ft Pro-Rata Initial Weighted
Share Market Rent Average
================================================================================
Food Court Tenants 3,939 SF 0.91% $30.00 $0.27
Kiosk Tenants 0 SF 0.00% $0.00 $0.00
Owned Anchor Tenants 241,253 SF 55.51% $4.00 $2.22
Non-Owned Anchors 112,957 SF
Non-Leasable Mall Shops 25,361 SF
================================================================================
Other Owned &
Leasable GLA 245,192 SF $2.49
Total
Owned & Leasable GLA 434,596 SF
Property Total 572,914 SF
================================================================================
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
COMMON AREA MAINTENANCE EXPENSE COMPARABLES
Cushman & Wakefield, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Budget Year No. Total Shop Budgeted Expense
No. Area Location State Year Built Stories GLA GLA CAM Expense Per Sq/Ft Location
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 Saratoga County MSA NY 1995 1990/91/93 1 656,501 256,668 $1,900,000 $7.40 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
2 Syracuse MSA NY 1995 1954/96 2 1,035,525 410,818 $2,750,000 $6.69 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
3 Syracuse MSA NY 1995 1988/94 1 776,571 311,557 $2,100,000 $6.74 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
4 Rochester MSA NY 1995 1967/93 2 1,533,574 495,040 $3,265,000 $6.60 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
5 Jefferson County MSA NY 1995 1986/93 1 635,765 209,873 $922,000 $4.39 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
6 Buffalo MSA NY 1996 1985/89 1 753,105 285,771 $1,665,000 $5.83 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
7 White Plains MSA NY 1995 1980/93 4 882,689 326,774 $3,190,000 $9.76 Urban
- ------------------------------------------------------------------------------------------------------------------------------------
8 Fairfield County MSA CT 1995 1986/91 2 1,270,146 499,868 $3,583,000 $7.17 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
9 Meriden MSA CT 1994 1971/94 2 711,626 292,877 $2,550,000 $8.71 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
10 Worcester County MSA MA 1996 1971/87 1 445,875 182,372 $1,410,000 $7.73 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
11 Boston MSA MA 1995 1980/93 1 322,120 155,080 $1,600,000 $10.32 Urban
- ------------------------------------------------------------------------------------------------------------------------------------
12 Bristol County MSA MA 1995 1992 2 1,005,595 349,107 $2,055,000 $5.89 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
13 Bristol County MSA MA 1995 1987/89 2 967,363 374,630 $2,762,000 $7.37 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
14 Essex County MSA MA 1995 1993/94 2 863,344 329,065 $2,315,000 $7.04 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
15 Kingston MSA MA 1994 1989/92 1 771,007 295,562 $1,682,000 $5.69 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
16 Burlington MSA VT 1995 1979/89/92 1 490,424 185,398 $1,000,000 $5.39 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
17 Bucks County MSA PA 1995 1968/75 1 348,309 305,212 $1,824,000 $5.98 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
18 Westminster MSA MD 1995 1987/94 1 524,964 193,557 $1,350,000 $6.97 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
19 Washington-Baltimore MD 1995 1979/93 2 661,639 245,217 $1,880,000 $7.67 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
20 Baltimore MSA MD 1995 1956/91 1 863,376 242,376 $1,940,000 $8.00 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
21 Prince William Cty. MSA VA 1995 1972/96 1 716,796 278,494 $1,600,000 $5.75 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
22 Arlington MSA VA 1994 1986 4 491,057 222,800 $1,930,000 $8.66 Urban
- ------------------------------------------------------------------------------------------------------------------------------------
23 Chicago/DuPage County IL 1995 1962/91 1 2,012,865 830,287 $5,790,000 $6.97 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
24 Chicago/DuPage County IL 1995 1975/96 2 1,477,103 569,926 $4,928,000 $8.65 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
25 Chicago/Cook County IL 1995 1976/94 2 1,251,294 499,999 $4,176,000 $8.35 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
26 Vernon Hills MSA IL 1995 1973/89 2 1,063,706 503,480 $2,500,000 $4.97 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
27 Bloomingdale MSA IL 1995 1981/88/91 2 1,292,186 427,609 $2,030,000 $4.75 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
28 Minneapolis MSA MN 1995 1962/94 1 982,228 201,561 $1,950,000 $9.67 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
29 Milwaukee MSA WN 1995 1972 1 1,014,851 395,598 $2,420,000 $6.12 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
30 Milwaukee MSA WN 1995 1970 1 1,257,676 371,420 $2,700,000 $7.27 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
31 Genesee County MSA MI 1995 1980/93 1 451,036 230,625 $902,000 $3.91 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
32 Louisville/Clark County IN 1995 1990 1 750,343 306,059 $1,676,000 $5.48 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
33 Indianapolis MSA IN 1995 1966/87 1 1,239,059 260,359 $1,431,000 $5.50 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
34 Tampa MSA FL 1995 1995 1 977,047 359,579 $1,980,000 $5.51 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
35 Plantation MSA FL 1995 1979/93 1 1,004,061 282,952 $1,829,000 $6.46 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
36 Miami MSA FL 1995 1982 1 1,120,827 290,385 $1,820,000 $6.27 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
37 Coral Springs MSA FL 1995 1984/96 1 1,171,127 293,183 $1,700,000 $5.80 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
38 North/Central Kansas KS 1995 1987/90 1 400,307 185,324 $830,000 $4.48 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
39 Amarillo MSA TX 1995 1982/86 1 889,508 316,190 $1,180,000 $3.73 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
40 Las Vegas MSA NV 1995 1992 1 241,580 241,580 $3,190,000 $13.20 Urban
- ------------------------------------------------------------------------------------------------------------------------------------
41 Las Vegas MSA NV 1994 1981/93 2 819,374 286,936 $2,455,000 $8.56 Urban
- ------------------------------------------------------------------------------------------------------------------------------------
42 Knoxville MSA TN 1995 1972/94 1 1,333,018 382,150 $1,810,000 $4.74 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
43 Nashville MSA TN 1995 1990 2 716,462 373,662 $2,280,000 $6.10 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
44 Riverside County MSA CA 1995 1970/91 1 1,044,536 411,640 $3,000,000 $7.29 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
45 Seattle MSA WA 1995 1979/95 1 1,012,754 311,019 $1,400,000 $4.50 Suburban
====================================================================================================================================
Survey Mean: 894,452 328,436 $2,205,556 $6.76
====================================================================================================================================
</TABLE>
<PAGE>
[GRAPHIC OMITTED]
[Neighborhood Map]
NEIGHBORHOOD MAP
<PAGE>
[GRAPHIC OMITTED]
[Floor Plan]
FLOOR PLAN OF THIRD FLOOR
<PAGE>
[GRAPHIC OMITTED]
[Site Plan]
SITE PLAN
<PAGE>
[GRAPHIC OMITTED]
[Tax Map Location]
TAX MAP LOCATION
<PAGE>
[GRAPHIC OMITTED]
[Improved Sales Map]
IMPROVED SALES MAP
<PAGE>
COMPARABLE OFFICE RENTALS
<TABLE>
<CAPTION>
====================================================================================================================================
Minimum Effective Expense Tenant
Comp Building Name/Address Lease Size Rent Rent Term Stop Escalations Concessions Improvement
No. (Yr Blt, Size) Date (SF) ($/SF) ($/SF) (Years) ($/SF) Allowance
====================================================================================================================================
<C> <S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 Oakwood Center Jun-97 1,637 $18.00 $18.00 7.5 Base Year 3.0%/Yr No Free $10.00/SF
(1982, 128,353 SF, Class B) Nov-96 3,172 $16.25 $16.25 5 Base Year 3.0%/Yr No Free $6.00/SF
(Expansion)
1997 Renewal 1,887 $16.00 $16.00 3 Base Year 3.0%/Yr No Free $2.00/SF
1997 Renewal 35,247 $18.85 $18.85 7 2000 Base 3.0%/Yr No Free $5.00/SF
2 Greenwood Corporate Center Proposal 11,000 $21.00 $21.00 8 Base Year 3.0%/Yr No Free $8.00/SF
(1985, 154,432 SF, Class A/B) Proposal 8,000 $21.50 $21.50 6 Base Year 3.0%/Yr No Free $8.00/SF
Jul-97 19,872 $20.00 $20.00 10 Base Year 3.0%/Yr No Free $8.00/SF
Jul-97 9,033 $19.00 $19.00 7.5 Base Year 3.0%/Yr No Free $5.00/SF
Jul-97 43,848 $19.80 $19.80 10 Base Year 150% CPI 2 Mos $12.00/SF
Aug-97 19,872 $21.75 $21.75 6.0 Base Year 3.0%/Yr 2 Mos Equiv $11.33/SF
3 10306 Eaton Place Jan-98 N/A $21.00 $21.00 5 1998 Base 3.0%/Yr No Free $5.00/SF
(1988, 121,863 SF, Class A) Jun-05 7,000 $20.00 $20.00 5 1998 Base 3.0%/Yr No Free $5.00/SF
4 Confidential, Class A Mar-97 5,664 $19.50 $19.50 5 No Passthrus 3.0%/Yr No Free As-Is
5 12801 Fair Lakes Parkway Feb-97 44,913 $19.50 $19.50 3 No Passthrus $1.00/SF/Yr No Free As-Is
(1987, 62,000 SF, Class A/B)
5 3701 Pender Drive Jan-97 16,016 $16.20 $16.20 5 Base Year 3.0%/Yr No Free $8.00/SF
(1985, 102,400 SF, Class B)
6 Confidential, Class A Dec-96 3,594 $19.00 $19.00 3 1996 Base 3.0%/Yr No Free As-Is
(1988, 136,000 SF) Feb-97 9,1O5 $18.50 $18.19 5 1997 Base 3.0%/Yr 1 Mos $6.00/SF
- ------------------------------------------------------------------------------------------------------------------------------------
Totals 239,860 $19.47 $19.46 5.9 Base Yr 3.0%/Yr -0.1% Std=$5-$12/SF
====================================================================================================================================
</TABLE>
<PAGE>
Oakwood Center
Operating Income and Expense Analysis
<TABLE>
<CAPTION>
===================================================================
Owner's C&W 1997/98 Fiscal
Net Rentable Area: 128,353 1996 Actual 1997 Budget Year Projection
-------------------------------------------------------------------
Total $/SF Total $/SF Total $/SF
=====================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Revenue From Operations
Base Rental Income $1,704,762 $13.28 $1,864,209 $14.52 $1,860,561 $14.50
Expense Recoveries $2,796 $0.02 $121,416 $0.95 $104,595 $0.81
------ ----- -------- ----- -------- -----
Total Rental Income $1,707,558 $13.30 $1,985,625 $15.47 $1,965,156 $15.31
Interest/Other Receipts $14,710 $0.11 $14,558 $0.11 $14,000 N/A
Credit & Collection Loss $0 $0.00 $0 $0.00 ($39,303) ($0.31)
-- ----- -- ----- --------- -------
Effective Gross Income $1,722,268 $13.42 $2,000,183 $15.58 $1,939,853 $15.11
Operating Expenses
Recoverable Expenses
Real Estate Taxes $110,323 $0.86 $114,814 $0.89 $160,230 $1.25
Operating Expenses $416,265 $3.24 $557,924 $4.35 $479,055 $3.73
General & Administrative $90,598 $0.71 $92,760 $0.72 $97,143 $0.76
Management Fee $45,878 $0.36 $50,006 $0.39 $58,196 $0.45
------- ----- ------- ----- ------- -----
Total Recoverable Expenses $663,064 $5.17 $815,504 $6.35 $794,624 $6.19
Administrative (Non-Recoverable) $19,280 $0.15 $0 $0.00 $25,925 $0.20
TOTAL EXPENSES $682,344 $5.32 $815,504 $6.35 $820,549 $6.39
Net Operating Income $1,039,924 $8.10 $1,184,679 $9.23 $1,119,304 $8.72
========== ===== ========== ===== ========== =====
Capital Expenditures $77,804 $0.61 $29,355 $0.23 $19,253 $0.15
Commissions $155,965 $1.22 $55,352 $0.43 $47,304 $0.37
Tenant Improvements $531,286 $4.14 $45,701 $0.36 $68,935 $0.54
=====================================================================================================
Management Fee % EGI 2.7% 2.5% 3.0%
Recoveries as % Total Expenses 0.4% 14.9% 13.2%
</TABLE>
<PAGE>
MARKET WEST OFFICE SECTOR
CLASS A BUILDINGS
DIRECT COMPETITION
<TABLE>
<CAPTION>
AVERAGE
LOCATION AGE RENTABLE AREA AREA AVAILABLE VACANCY RATE RENTAL RATE/SF TERMS
- ---------------------- ---- ------------- -------------- ------------ -------------- -----
<S> <C> <C> <C> <C> <C> <C>
Centre Square 1974 1,800,000 57,689 3.2% $23.00 Gross
1600 Market Street 1983 760,000 36,166 4.8% $20.00 +Elec.
1700 Market Street 1969 840,792 81,237 9.7% $20.00 Gross
1818 Market Street 1974 947,000 194,235 20.5% $19.50 +Elec.
1900 Market Street 1981 386,000 18,582 4.8% $24.00 Gross
2000 Market Street 1973 650,000 64,746 10.0% $18.00 Gross
7 Penn Center 1968 296,000 48,855 16.5% $20.75 Gross
1601 Market Street 1970 700,000 61,412 8.8% $20.00 Gross
8 Penn Center 1981 237,000 96,655 40.8% $16.50 +Elec.
10 Penn Center 1981 636,000 69,842 11.0% $18.00 +Elec.
1800 Kennedy Boulevard 1984 236,956 20,000 8.4% $18.00 Gross
1880 Kennedy Boulevard 1985 236,788 24,000 10.1% $18.00 Gross
United Engineers 1975 600,000 30,000 5.0% $20.00 Gross
One Logan Square 1983 570,000 28,065 4.9% $24.00 +Elec.
--------- ------- ----
TOTAL 8,896,536 997,981 11.2%
========= ======= ====
</TABLE>
<PAGE>
[PHOTOSTATIC IMAGE OF LAND TITLE SURVEY AND VICINITY MAP]
<PAGE>
["COMPARABLE RENTALS" MAP: DETAIL MAP SHOWING LOCATION
OF SUBJECT PROPERTY AND SURROUNDING AREA]
<PAGE>
["COMPARABLE SALES" MAP: DETAIL MAP SHOWING LOCATION
OF SUBJECT PROPERTY AND SURROUNDING AREA]
<PAGE>
["NEIGHBORHOOD MAP": DETAIL MAP SHOWING LOCATION
OF SUBJECT PROPERTY AND SURROUNDING AREA]
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
SUMMARY OF COMPARABLE IMPROVED SALES
====================================================================================================================================
BLDG SIZE UNIT YEAR
No. LOCATION DATE CONSIDERATION in SF PRICE/S.F. STORIES BUILT COMMENTS
====================================================================================================================================
<C> <S> <C> <C> <C> <C> <C> <C> <C>
1 2300 Gateway Center Jan-96 $2,130,000 22,000 $96.82 2 1988 This is the sale of a nearby
Durham, North Carolina office building situated in a
similar business park setting
outside the Research Triangle.
- ------------------------------------------------------------------------------------------------------------------------------------
2 2500 & 2700 Gateway Center Jan-96 $5,388,000 93,500 $57.63 2 1988 This is the sale of a nearby
Durham, North Carolina flex building situated in a
similar business park setting
outside the Research Triangle.
- ------------------------------------------------------------------------------------------------------------------------------------
3 2200 & 2800 Gateway Center Sep-93 $8,163,500 151,927 $53.73 2 1987 This is the sale of a nearby
Durham, North Carolina flex building situated in a
similar business park setting
outside the Research Triangle.
- ------------------------------------------------------------------------------------------------------------------------------------
4 2950 Gateway Center May-93 $750,000 10,164 $73.79 1-2 1988 This is the sale of a nearby
Durham, North Carolina office building situated in a
similar business park setting
outside the Research Triangle.
- ------------------------------------------------------------------------------------------------------------------------------------
5 Park Forty Plaza Sep-93 $8,900,000 121,324 $73.36 5 1987 This was the sale of a five
Durham, North Carolina story class A office building
located two blocks south of the
subject property.
====================================================================================================================================
</TABLE>
<PAGE>
50000 - WESTPARK 1
LEASE ABSTRACT REPORT
FOR ALL TENANTS
<TABLE>
<CAPTION>
PRIMARY/ ANNUAL
SECONDARY SOUARE LEASE LEASE OPTION MINIMUM MINIMUM OVERAGE CEILING BREAKPOINT
TENANT CODES FEET BEGIN END #/MOS RENT/SF RENT % (000'S) (000'S) RECOVERIES
- ---------------- --------- ------- ----- ----- ------ ----------- --------- ------- ------- ---------- ------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
# 1 - 38,867 7/89 7/01 - 16.90 656,852 - - - OPERATING EXPENSE
CATO RESEARCH - 8/97 17.40 676,286
8/98 17.90 695,719
8/99 18.40 715,153
8/00 18.90 734,586
# 2 1 658 8/94 7/97 - 19.10 12,568 - - - OPERATING EXPENSE
MCI TELECOM -
# 3 - 1,018 1/97 12/97 - 17.25 17,561 - - - OPERATING EXPENSE
CATO RESEARCH -
# 4 - 1,657 9/95 8/98 - 17.00 28,169 - - - OPERATING EXPENSE
TRIANGLE SYSTEMS - 9/97 17.50 28,998
# 5 - 14,401 10/91 2/01 - 16.99 244,673 - - - OPERATING EXPENSE
SANDLER & RECHT - 10/97 17.44 251,153
4/98 17.53 252,450
11/98 18.30 263,538
11/00 18.85 271,459
-------
56,601
=======
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
============================================================================================================
SUMMARY OF COMPARABLE LEASES
============================================================================================================
TERM UNIT SIZE GROSS FREE RENT/
No. LOCATION DATE YEARS in SF RENT/S.F. TI ALLOW.
============================================================================================================
<C> <C> <C> <C> <C> <C>
1 Sycamore Building 3rd Quarter 1996 5 6,000 $16.75 None
Durham, North Carolina $15.00
- ------------------------------------------------------------------------------------------------------------
2 Park 40 Plaza 3rd Quarter 1996 5 3,000 $17.75 None
Durham, North Carolina $15.00
- ------------------------------------------------------------------------------------------------------------
3 University Tower 3rd Quarter 1996 3 3,717 $19.00 None
Durham, North Carolina $5.00
- ------------------------------------------------------------------------------------------------------------
4 Meridian Business Park 3rd Quarter 1996 5 1,800 $18.50 None
Durham, North Carolina $15.00
- ------------------------------------------------------------------------------------------------------------
5 BASF Building 3rd Quarter 1996 5 10,000 $18.00 None
Durham, North Carolina $15.00
============================================================================================================
</TABLE>
<PAGE>
================================================================================
HISTORICAL OPERATING STATEMENT
WEST PARK BUSINESS CENTER
- --------------------------------------------------------------------------------
BAP-Budget C&W-YR1
- --------------------------------------------------------------------------------
OPERATING HISTORY 1994 1995 1996 1997 Projection
- --------------------------------------------------------------------------------
REVENUES
Base Rents $814,596 $858,629 $848,345 $964,442
Operating Escalation $ 17,126 $ 1,534 $(13,561) $ 16,116
Other $ 68 $ 2,424 $ -- $ --
-------- -------- -------- --------
TOTAL REVENUES $831,790 $862,587 $834,784 $980,558
EXPENSES
Real Estate Taxes 63,541 56,478 56,686 56,688 49,636
Insurance -- -- -- -- --
Legal & Professional Fees 241 6,094 46,734 -- 10,000
Cleaning 39,757 38,037 34,699 48,100 40,000
Maintenance Materials 14,064 20,686 10,652 12,549 20,000
Utilities 120,916 97,119 94,776 96,700 100,000
Management 25,816 28,054 27,526 29,058 30,000
Outside Contracts 95,855 92,097 106,149 97,566 110,000
Other Administrative 9,332 11,805 18,373 22,160 12,000
TOTAL EXPENSES $369,522 $350,370 $395,595 $362,821 $371,636
NET OPERATING INCOME $462,268 $512,217 $439,189 $617,737
================================================================================
<PAGE>
NORTHPARK MALL
PROJECT DESIGNATOR: NPRK
ANNUAL CASH FLOW REPORT
BEGINNING 1/1/96 FOR 12 YEARS
<TABLE>
<CAPTION>
CY1996 CY1997 CY1998 CY1999 CY2000 CY2001 CY2002 CY2003
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INCOME
- ------
MINIMUM RENT:
ALL TENANTS 6,462,543 7,309,436 7,927,463 8,186,897 8,316,039 8,543,046 8,864,952 9,067,934
FREE RENT (155,703) (275,529) (30,435) 0 0 0 0 0
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL MINIMUM RENT 6,306,840 7,033,907 7,897,028 8,186,897 8,316,039 8,543,046 8,864,952 9,067,934
RECOVERIES:
HVC-HVAC INCOME 1,418,615 1,580,607 1,692,046 1,747,806 1,770,953 1,827,518 1,880,341 1,920,633
CAM-MALL SHOPS 1,638,507 1,823,852 1,932,767 2,018,862 2,068,500 2,141,822 2,202,377 2,265,988
TAX-MALL SHOPS 641,661 556,620 576,950 597,555 618,135 640,286 662,662 685,806
ADD'L CAM-CAP. EXP. 0 188,615 186,622 0 0 0 0 0
ANCHOR CONTRIB. 580,910 595,626 610,857 626,622 653,188 683,721 701,199 719,289
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL RECOVERIES 4,279,693 4,745,320 4,999,242 4,990,845 5,110,776 5,293,347 5,446,579 5,591,716
OVERAGE RENT 314,209 332,451 341,370 364,215 353,980 357,806 288,648 331,853
SALES VOLUME (000) 73,794 75,935 78,958 82,118 83,788 87,486 90,300 92,887
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
GROSS RENTAL
INCOME 10,900,742 12,111,678 13,237,640 13,541,957 13,780,795 14,194,199 14,600,179 14,991,503
CREDIT LOSS (309,594) (460,643) (631,341) (645,767) (656,379) (675,523) (694,950) (713,609)
TEMP. TENANT/RMU'S 160,000 164,800 169,744 174,836 180,081 185,484 191,048 196,780
MISCELLANEOUS 40,000 41,200 42,436 43,709 45,020 46,371 47,762 49,195
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL INCOME 10,791,148 11,857,035 12,818,479 13,114,735 13,349,517 13,750,531 14,144,039 14,523,869
EXPENSES
- --------
COMMON AREA MAINT. 1,930,000 1,997,550 2,067,464 2,139,825 2,214,719 2,292,234 2,372,462 2,455,498
REAL ESTATE TAXES 545,000 564,075 583,818 604,251 625,400 647,289 669,944 693,392
NON-CAM UTILITIES 977,555 1,075,826 1,131,807 1,169,491 1,181,176 1,213,207 1,235,839 1,258,583
WATER & SEWER EXP. 38,336 42,189 44,385 45,862 46,321 47,577 48,464 49,356
ADD'L CAM-CAP. EXP. 0 200,000 200,000 0 0 0 0 0
GENERAL & ADMIN. 260,000 269,100 278,519 288,267 298,356 308,798 319,606 330,793
MARKETING EXPENSE 100,000 103,500 107,123 110,872 114,752 118,769 122,926 127,228
MISCELLANEOUS 30,000 30,900 31,827 32,782 33,765 34,778 35,822 36,896
MANAGEMENT FEE 198,631 220,991 247,152 256,533 260,100 267,025 274,608 281,993
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
TOTAL EXPENSES 4,079,522 4,504,131 4,692,095 4,647,883 4,774,589 4,929,677 5,079,671 5,233,739
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
NET OPERATING
INCOME 6,711,626 7,352,904 8,126,384 8,466,852 8,574,928 8,820,854 9,064,368 9,290,130
ALTERATIONS 175,823 126,502 174,980 28,778 121,531 40,892 92,835 72,109
COMMISSIONS 38,207 47,358 72,055 12,388 50,547 18,976 41,623 31,237
REPL'MENT RESERVE 46,451 48,077 49,760 51,501 53,304 55,170 57,100 59,099
CAPITAL REPAIRS 0 1,800,000 1,800,000 0 0 0 0 0
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
CASH FLOW 6,451,145 5,330,967 6,029,589 8,374,185 8,349,546 8,705,816 8,872,810 9,127,685
</TABLE>
CY2004 CY2005 CY2006 CY2007
INCOME
- ------
MINIMUM RENT:
ALL TENANTS 9,309,652 9,942,488 10,320,152 11,189,218
FREE RENT 0 0 0 0
---------- ---------- ---------- ----------
TOTAL MINIMUM RENT 9,309,652 9,942,488 10,320,152 11,189,218
RECOVERIES:
HVC-HVAC INCOME 1,927,805 1,976,131 1,982,353 2,077,242
CAM-MALL SHOPS 2,302,467 2,350,128 2,383,590 2,445,446
TAX-MALL SHOPS 709,120 733,984 756,481 781,143
ADD'L CAM-CAP. EXP. 0 0 0 0
ANCHOR CONTRIB. 738,013 767,641 794,521 815,280
---------- ---------- ---------- ----------
TOTAL RECOVERIES 5,677,405 5,827,884 5,916,945 6,119,111
OVERAGE RENT 363,813 248,568 286,760 312,626
SALES VOLUME (000) 95,068 99,338 103,623 107,266
---------- ---------- ---------- ----------
GROSS RENTAL
INCOME 15,350,870 16,018,940 16,523,857 17,620,954
CREDIT LOSS (730,643) (762,565) (786,469) (840,284)
TEMP. TENANT/RMU'S 202,683 208,764 215,027 221,477
MISCELLANEOUS 50,671 52,191 53,757 55,369
---------- ---------- ---------- ----------
TOTAL INCOME 14,873,581 15,517,330 16,006,171 17,057,516
EXPENSES
- --------
COMMON AREA MAINT. 2,541,440 2,630,391 2,722,454 2,817,740
REAL ESTATE TAXES 717,661 742,779 768,776 795,683
NON-CAM UTILITIES 1,266,078 1,290,657 1,295,512 1,344,087
WATER & SEWER EXP. 49,650 50,614 50,804 52,709
ADD'L CAM-CAP. EXP. 0 0 0 0
GENERAL & ADMIN. 342,370 354,353 366,756 379,592
MARKETING EXPENSE 131,681 136,290 141,060 145,997
MISCELLANEOUS 38,003 39,143 40,317 41,527
MANAGEMENT FEE 290,204 305,731 318,207 345,055
---------- ---------- ---------- ----------
TOTAL EXPENSES 5,377,087 5,549,958 5,703,886 5,922,390
---------- ---------- ---------- ----------
NET OPERATING
INCOME 9,496,494 9,967,372 10,302,285 11,135,126
ALTERATIONS 264,606 213,181 424,620 306,413
COMMISSIONS 110,748 83,729 188,142 131,175
REPL'MENT RESERVE 61,167 63,308 65,524 67,817
CAPITAL REPAIRS 0 0 0 0
---------- ---------- ---------- ----------
CASH FLOW 9,059,973 9,607,154 9,623,999 10,629,721
<PAGE>
================================================================================
RECENT LEASING ACTIVITY - Mall Shop Tenants By Size
Northpark Mall (Ridgeland, Mississippi)
Cushman & Wakefield, Inc.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Lease Initial Initial Final Final % Change
Tenant Category Term Area Annual Rent/ Annual Rent/ in Rent
(By Size/Area) (Yrs) (Sq/Ft) Rent Sq/Ft Rent Sq/Ft Over Term
===================================================================================================================
1. Tenants < 750sf
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Sunglass Hut(3/96) 10.0 620 $45,000 $72.58 $45,000 $72.58 0.0%
Claire's Boutique(7/95) 10.0 728 $38,000 $52.20 $42,000 $57.69 10.5%
Anne's Pretzel(8/96) 10.0 550 $40,000 $72.73 $40,000 $72.73 0.0%
We Love Yogurt(1/96) 10.0 690 $42,500 $61.59 $47,500 $68.84 11.8%
Sweet Factory(6/96) 10.0 688 $38,000 $55.23 $46,000 $66.86 21.1%
Sunglass Hut Int'l(1/96) 10.0 570 $42,000 $73.68 $42,000 $73.68 0.0%
------------------------ ---- ----- -------- ------ -------- ------ -----
Subtotal: 6 10.0 3,846 $245,000 $63.83 $262,500 $68.25 6.9%
- -------------------------------------------------------------------------------------------------------------------
2. Tenants 750-1200 sf
Master Cuts(3/95) 10.0 1,095 $32,000 $29.22 $39,999 $36.53 25.0%
Easy Spirit(7/95) 10.0 1,040 $43,680 $42.00 $43,680 $42.00 0.0%
Reeds Jewelers(2/95) 10.0 1,073 $60,000 $55.92 $60,000 $55.92 0.0%
Friedmans(11/95) 10.0 904 $50,000 $55.31 $60,000 $66.37 20.0%
------------------------ ---- ----- -------- ------ -------- ------ -----
Subtotal: 4 10.0 4,112 $185,680 $45.16 $203,679 $49.53 9.7%
- -------------------------------------------------------------------------------------------------------------------
3. Tenants 1201-2000 sf
Sports Ave.(11/95) 10.0 1,396 $41,880 $30.00 $48,860 $35.00 16.7%
Nine West(4/95) 10.0 1,206 $45,225 $37.50 $45,225 $37.50 0.0%
Trade Secrets(10/95) 10.0 1,367 $36,007 $26.34 $38,003 $27.80 5.5%
Micheals Jewlers(10/95) 10.0 1,525 $50,325 $33.00 $56,425 $37.00 12.1%
------------------------ ---- ----- -------- ------ -------- ------ -----
Subtotal: 4 10.0 5,494 $173,437 $31.57 $188,513 $34.31 8.7%
- -------------------------------------------------------------------------------------------------------------------
4. Tenants 2001-3500 sf
Cyberstation(6/95) 10.0 2,810 $67,500 $24.02 $67,500 $24.02 0.0%
Lady Footlocker(11/95) 10.0 2,658 $65,015 $24.46 $75,000 $28.22 15.4%
Pacific Sunwear(9/95) 10.0 2,240 $57,994 $25.89 $66,000 $29.46 13.8%
Underground(7/96) 10.0 2,032 $50,800 $25.00 $50,800 $25.00 0.0%
Bath & Body(3/95) 10.0 2,527 $68,229 $27.00 $68,229 $27.00 0.0%
Cache(9/96) 10.0 2,087 $52,175 $25.00 $52,175 $25.00 0.0%
------------------------ ---- ------ -------- ------ -------- ------ -----
Subtotal: 6 10.0 14,354 $361,712 $25.20 $379,704 $26.45 5.0%
- -------------------------------------------------------------------------------------------------------------------
5. Tenants 3501-5000 sf
Williams Sonoma(10/95) 13.0 3,838 $76,760 $20.00 $76,760 $20.00 0.0%
Limited Too(3/95) 12.0 4,055 $101,375 $25.00 $101,375 $25.00 0.0%
Rack Room Shoes(4/96) 10.0 4,898 $107,756 $22.00 $107,756 $22.00 0.0%
------------------------ ---- ------ -------- ------ -------- ------ -----
Subtotal: 3 11.7 12,791 $285,891 $22.35 $285,891 $22.35 0.0%
- -------------------------------------------------------------------------------------------------------------------
6. Tenants 5001-10000 sf
Banana Republic(3/95) 5.0 5,112 $132,912 $26.00 $143,136 $28.00 7.7%
The Gap(5/95) 8.0 8,785 $351,400 $40.00 $351,400 $40.00 0.0%
Ann Taylor(9/95) 10.0 5,427 $135,675 $25.00 $135,675 $25.00 0.0%
The Finish Line(11/95) 10.0 6,255 $100,080 $16.00 $125,100 $20.00 25.0%
Gap Kids(3/95) 5.0 5,093 $149,123 $29.28 $157,934 $31.01 5.9%
Warner Bros.(4/95) 12.0 7,414 $185,350 $25.00 $185,350 $25.00 0.0%
------------------------ ---- ------ ---------- ------ ---------- ------ -----
Subtotal: 6 8.3 38,086 $1,054,540 $27.69 $1,098,595 $28.85 4.2%
- -------------------------------------------------------------------------------------------------------------------
7. Tenants > 10000 sf
Abercrobe & Fitch(8/96) 12.0 10,600 $243,800 $23.00 $243,800 $23.00 0.0%
------------------------ ---- ------ ---------- ------ ---------- ------ -----
Subtotal: 1 12.0 10,600 $243,800 $23.00 $243,800 $23.00 0.0%
===================================================================================================================
Survey Total: 30 10.3 89,283 $2,550,560 $28.57 $2,662,682 $29.82 4.4%
===================================================================================================================
</TABLE>
<PAGE>
================================================================================
AVERAGE MALL SHOP RENT CALCULATION
Northpark Mall
Cushman & Wakefield, Inc.
================================================================================
Suite Size Applicable Pro-Rata Initial Weighted
Category Sq/Ft Share Market Rent Average
================================================================================
- ------------------
In-Line Mall Shops
- ------------------
Under - 750 SF 8,985 SF 2.90% $60.00 $1.74
751 - 1,200 SF 17,643 SF 5.70% $45.00 $2.56
1,201 - 2,000 SF 38,200 SF 12.34% $30.00 $3.70
2,001 - 3,500 SF 70,478 SF 22.76% $27.50 $6.26
3,501 - 5,000 SF 54,102 SF 17.47% $25.00 $4.37
5,001 - 10,000 SF 109,667 SF 35.41% $22.50 $7.97
Over - 10,000 SF 10,600 SF 3.42% $20.00 $0.68
================================================================================
Mall Shop Average Rent: 309,675 SF 100.00% $27.28
================================================================================
<PAGE>
================================================================================
COMMON AREA MAINTENANCE EXPENSE COMPARABLES
Cushman & Wakefield, Inc.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Budget Year No. Total Shop Budgeted Expense
No. Area Location State Year Built Stories GLA GLA CAM Expense Per Sq/Ft Location
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 Saratoga County MSA NY 1995 1990/91/93 1 656,501 256,668 $1,900,000 $7.40 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
2 Syracuse MSA NY 1995 1954/96 2 1,035,525 410,818 $2,750,000 $6.69 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
3 Syracuse MSA NY 1995 1988/94 1 776,571 311,557 $2,100,000 $6.74 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
4 Rochester MSA NY 1995 1967/93 2 1,533,574 495,040 $3,265,000 $6.60 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
5 Jefferson County MSA NY 1995 1986/93 1 635,765 209,873 $922,000 $4.39 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
6 Buffalo MSA NY 1996 1985/89 1 753,105 285,771 $1,665,000 $5.83 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
7 White Plains MSA NY 1995 1980/93 4 882,689 326,774 $3,190,000 $9.76 Urban
- ------------------------------------------------------------------------------------------------------------------------------------
8 Fairfield County MSA CT 1995 1986/91 2 1,270,146 499,868 $3,583,000 $7.17 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
9 Meriden MSA CT 1994 1971/94 2 711,626 292,877 $2,550,000 $8.71 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
10 Worcester County MSA MA 1996 1971/87 1 445,875 182,372 $1,410,000 $7.73 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
11 Boston MSA MA 1995 1980/93 1 322,120 155,080 $1,600,000 $10.32 Urban
- ------------------------------------------------------------------------------------------------------------------------------------
12 Bristol County MSA MA 1995 1992 2 1,005,595 349,107 $2,055,000 $5.89 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
13 Bristol County MSA MA 1995 1987/89 2 967,363 374,630 $2,762,000 $7.37 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
14 Essex County MSA MA 1995 1993/94 2 863,344 329,065 $2,315,000 $7.04 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
15 Kingston MSA MA 1994 1989/92 1 771,007 295,562 $1,682,000 $5.69 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
16 Burlington MSA VT 1995 1979/89/92 1 490,424 185,398 $1,000,000 $5.39 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
17 Bucks County MSA PA 1995 1968/75 1 348,309 305,212 $1,824,000 $5.98 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
18 Westminster MSA MD 1995 1987/94 1 524,964 193,557 $1,350,000 $6.97 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
19 Washington-Baltimore MD 1995 1979/93 2 661,639 245,217 $1,880,000 $7.67 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
20 Baltimore MSA MD 1995 1956/91 1 863,376 242,376 $1,940,000 $8.00 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
21 Prince William Cty. MSA VA 1995 1972/96 1 716,796 278,494 $1,600,000 $5.75 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
22 Arlington MSA VA 1994 1986 4 491,057 222,800 $1,930,000 $8.66 Urban
- ------------------------------------------------------------------------------------------------------------------------------------
23 Chicago/DuPage County IL 1995 1962/91 1 2,012,865 830,287 $5,790,000 $6.97 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
24 Chicago/DuPage County IL 1995 1975/96 2 1,477,103 569,926 $4,928,000 $8.65 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
25 Chicago/Cook County IL 1995 1976/94 2 1,251,294 499,999 $4,176,000 $8.35 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
26 Vernon Hills MSA IL 1995 1973/89 2 1,063,706 503,480 $2,500,000 $4.97 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
27 Bloomingdale MSA IL 1995 1981/88/91 2 1,292,186 427,609 $2,030,000 $4.75 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
28 Minneapolis MSA MN 1995 1962/94 1 982,228 201,561 $1,950,000 $9.67 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
29 Milwaukee MSA WN 1995 1972 1 1,014,851 395,598 $2,420,000 $6.12 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
30 Milwaukee MSA WN 1995 1970 1 1,257,676 371,420 $2,700,000 $7.27 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
31 Genesee County MSA MI 1995 1980/93 1 451,036 230,625 $902,000 $3.91 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
32 Louisville/Clark County IN 1995 1990 1 750,343 306,059 $1,676,000 $5.48 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
33 Indianapolis MSA IN 1995 1966/87 1 1,239,059 260,359 $1,431,000 $5.50 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
34 Tampa MSA FL 1995 1995 1 977,047 359,579 $1,980,000 $5.51 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
35 Plantation MSA FL 1995 1979/93 1 1,004,061 282,952 $1,829,000 $6.46 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
36 Miami MSA FL 1995 1982 1 1,120,827 290,385 $1,820,000 $6.27 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
37 Coral Springs MSA FL 1995 1984/96 1 1,171,127 293,183 $1,700,000 $5.80 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
38 North/Central Kansas KS 1995 1987/90 1 400,307 185,324 $830,000 $4.48 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
39 Amarillo MSA TX 1995 1982/86 1 889,508 316,190 $1,180,000 $3.73 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
40 Las Vegas MSA NV 1995 1992 1 241,580 241,580 $3,190,000 $13.20 Urban
- ------------------------------------------------------------------------------------------------------------------------------------
41 Las Vegas MSA NV 1994 1981/93 2 819,374 286,936 $2,455,000 $8.56 Urban
- ------------------------------------------------------------------------------------------------------------------------------------
42 Knoxville MSA TN 1995 1972/94 1 1,333,018 382,150 $1,810,000 $4.74 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
43 Nashville MSA TN 1995 1990 2 716,462 373,662 $2,280,000 $6.10 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
44 Riverside County MSA CA 1995 1970/91 1 1,044,536 411,640 $3,000,000 $7.29 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
45 Seattle MSA WA 1995 1979/95 1 1,012,754 311,019 $1,400,000 $4.50 Suburban
====================================================================================================================================
Survey Mean: 894,452 328,436 $2,205,556 $6.76
====================================================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
OPERATING EXPENSE STATISTICS Regional & Super-Regional Malls
Cushman & Wakefield, Inc. East
====================================================================================================================================
ULI ULI ULI ULI ULI ULI ULI
--- --- --- --- --- --- ---
Super-Regional Super-Regional Super-Regional Super-Regional Regional Regional Regional
Centers/ Centers/ Centers/ Centers/ Centers/ Centers/ Centers/
U.S. U.S. East East U.S. U.S. East
Average Median Average Median Average Median Average
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
- --------------------
Property Profile
- --------------------
Total GLA: 999,544 1,009,585 935,436 937,742 582,893 579,154 644,794
Total Owner GLA: 563,689 535,272 531,481 483,976 461,822 435,855 512,183
Shop Sales/sf*: $203.09 $198.93 $220.64 $183.81 $176.16 $163.54 $204.96
Anchor Sales/sf: $149.38 $138.66 $152.35 $136.98 $156.30 $152.29 $174.78
- --------------------
Opertating Income
- --------------------
Minimum Rent: $16.30 $16.79 $17.14 $18.17 $12.05 $11.33 $13.62
Overage Rent: $1.14 $1.04 $1.40 $1.25 $0.86 $0.76 $0.92
CAM Charges: $4.68 $4.60 $5.01 $4.70 $3.34 $3.23 $4.33
Property Taxes: $1.72 $1.54 $1.79 $1.52 $1.13 $1.08 $1.62
Insurance: $0.11 $0.06 $0.13 $0.14 $0.09 $0.08 $0.13
Utilities: $1.74 $1.84 $2.38 $2.43 $1.55 $1.18 $1.35
Other: $1.15 $0.62 $1.24 $0.53 $0.42 $0.37 $0.28
----- ------ ------ ------ ------ ------ ------ ------
Total Income: $27.32 $27.32 $29.08 $28.59 $19.86 $18.98 $23.25
- --------------------
Operating Expenses
- --------------------
Total Maintenance**: $4.50 $4.45 $4.85 $4.67 $3.43 $3.16 $4.11
Real Estate Taxes: $1.86 $1.55 $2.04 $1.51 $1.27 $1.16 $1.75
Insurance: $0.32 $0.28 $0.40 $0.29 $0.26 $0.23 $0.30
Advertising: $0.60 $0.44 $0.83 $0.61 $0.56 $0.48 $0.64
Administrative***: $0.87 $0.74 $0.82 $0.71 $0.93 $0.82 $0.96
Management Fee: $0.63 $0.59 $0.61 $0.55 $0.40 $0.39 $0.53
-------------- ------ ------ ------ ------ ------ ------ ------
Total Expenses: $9.25 $8.87 $9.84 $8.47 $7.35 $6.63 $8.89
OER: 33.9% 32.5% 33.8% 29.6% 37.0% 34.9% 38.2%
- --------------------
Net Operating Income $17.63 $17.12 $18.72 $17.01 $12.02 $10.85 $14.33
- --------------------
====================================================================================================================================
<CAPTION>
====================================================================================================================================
ULI ICSC ICSC ICSC ICSC ICSC ICSC
--- ---- ---- ---- ---- ---- ----
Regional Enclosed Malls Enclosed Malls Enclosed Malls Enclosed Malls Enclosed Malls Enclosed Malls
Centers/ U.S. U.S. U.S. U.S. East East
East Total 500,000- 800,000- Over Median Median
Median Survey 799,999sf 999,999sf 1,000,000sf <800,000sf >800,000sf
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
- --------------------
Property Profile
- --------------------
Total GLA: 676,000 744,050 617,499 900,813 1,148,133 324,816 988,503
Total Owner GLA: 448,114 441,394 460,399 515,392 575,309 280,740 635,789
Shop Sales/sf*: $183.05 $222.04 $201.55 $259.74 $255.55 $161.96 $251.73
Anchor Sales/sf: $176.70 $159.39 $145.82 $184.98 $171.34 $160.49 $174.86
- --------------------
Opertating Income
- --------------------
Minimum Rent: $11.99 $17.60 $15.38 $19.85 $21.60 $16.32 $22.97
Overage Rent: $1.00 -- -- -- -- -- --
CAM Charges: $4.02 $5.73 $5.45 $8.23 $7.24 $4.28 $7.99
Property Taxes: $1.32 $1.84 $1.14 $2.76 $2.82 $1.63 $3.45
Insurance: $0.05 $0.15 $0.17 $0.19 $0.13 $0.13 $0.15
Utilities: $0.65 $0.73 $1.56 $0.78 $1.08 $0.40 $1.05
Other: $0.34 $0.28 $0.22 $0.38 $0.39 $0.10 $0.54
----- ------ ------ ------ ------ ------ ------ ------
Total Income: $22.25 $27.60 $26.22 $32.90 $36.05 $21.61 $39.42
- --------------------
Operating Expenses
- --------------------
Total Maintenance**: $3.50 $4.33 $4.65 $5.45 $5.52 $3.27 $6.11
Real Estate Taxes: $1.19 $2.31 $1.82 $3.32 $3.30 $2.37 $3.95
Insurance: $0.26 $0.37 $0.34 $0.42 $0.43 $0.39 $0.43
Advertising: $0.35 $1.18 $1.04 $1.37 $1.81 $0.77 $1.37
Administrative***: $0.80 $1.05 $1.02 $1.21 $1.29 $0.83 $1.51
Management Fee: $0.42 $0.75 $0.65 $0.91 $0.95 $0.51 $1.06
-------------- ------ ------ ------ ------ ------ ------ ------
Total Expenses: $7.38 $11.06 $10.50 $12.65 $13.66 $10.09 $15.59
OER: 33.2% 40.1% 40.0% 38.4% 37.9% 46.7% 39.5%
- --------------------
Net Operating Income $13.28 $16.26 $14.55 $19.31 $21.19 $14.98 $24.27
- --------------------
- ----------------
* Average sale include all mall shop tenants.
** CAM expenses include repair & maintenance, utilities, and security.
*** Management fees & bad debt allowances have been deducted from administrative costs. Management has been shown separately.
Source: Urban Land Institute "Dollars & Cents" (1995); International Council of Shopping Centers "The Score" (1996).
(Because the data are means/medians, detailed amounts do not add to totals).
====================================================================================================================================
</TABLE>
<PAGE>
[GRAPHIC OMITTED]
[Area Map]
Comparable Building Sales
<PAGE>
[GRAPHIC OMITTED]
[Neighborhood Map]
Comparable Rentals
<PAGE>
- --------------------------------------------------------------------------------
BELOW-MARKET RENT ANALYSIS
3200 PATRICK HENRY DRIVE, SANTA CLARA, CA
- --------------------------------------------------------------------------------
FY1997 FY1998
- --------------------------------------------------------------------------------
Gross Rental Income
at Conract Rates: $777,778 $777,778
Less:
Gross Rental Income
at Market Rates: 1,129,032 1,174,193
----------------------------
Lost Rental Revenue: ($351,254) ($396,415)
- --------------------------------------------------------------------------------
Net Present Value of
Below-Market Rent: ($674,519)
----------
Rounded To: ($670,000)
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
HISTORICAL AND ESTIMATED EXPENSES
SAN VALENTE BUILDING, SANTA CLARA, CALIFORNIA
1995 1996 FY 1997
ACTUAL (Budget) (C&W Estimate)
------ -------- --------------
- --------------------------------------------------------------------------------
Common Area Maintenance $8,500 $2,000 $10,000
Real Estate Taxes $111,500 $115,000 $105,000
Insurance $20,200 $27,600 $20,000
Management $14,900 $17,500 $18,00O
- --------------------------------------------------------------------------------
Total Expenses $155,100 $162,100 $153,000
Per/SF $1.48 $1.55 $1.46
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE>
SAN VALENTE BLDG., SANTA CLARA, CA
ANNUAL CASH FLOW REPORT
BEGINNING 8/1/96 FOR 11 YEARS
<TABLE>
<CAPTION>
FY1997 FY1998 FY1999 FY2000 FY2001 FY2002
<S> <C> <C> <C> <C> <C> <C>
INCOME
- ------
MINIMUM RENT:
ALL TENANTS 777,778 777,778 637,018 1,262,731 1,306,926 1,352,669
------- ------- ------- --------- --------- ---------
TOTAL MINIMUM RENT 777,778 777,778 637,018 1,262,731 1,306,926 1,352,669
RECOVERIES:
REIMBURSABLE EXP. 155,122 158,382 107,358 171,037 179,243 183,757
------- ------- ------- --------- --------- ---------
TOTAL RECOVERIES 155,122 158,382 107,358 171,037 179,243 183,757
------- ------- ------- --------- --------- ---------
GROSS RENTAL
INCOME 932,900 936,160 744,376 1,433,768 1,486,169 1,536,426
CREDIT LOSS (18,658) (18,723) (14,888) (28,675) (29,723) (30,729)
------- ------- ------- --------- --------- ---------
TOTAL INCOME 914,242 917,437 729,488 1,405,093 1,456,446 1,505,697
EXPENSES
COMMON AREA MAIN. 10,204 10,561 10,931 11,314 11,710 12,119
REAL ESTATE TAXES 106,225 108,350 110,516 112,727 114,981 117,281
INSURANCE 20,408 21,123 21,862 22,627 23,419 24,239
MANAGEMENT FEE 18,285 18,349 14,590 28,102 29,129 30,114
------- ------- ------- --------- --------- ---------
TOTAL EXPENSES 155,122 158,383 157,899 174,770 179,239 183,753
------- ------- ------- --------- --------- ---------
NET OPERATING
INCOME 759,120 759,054 571,589 1,230,323 1,277,207 1,321,944
ALTERATIONS 0 0 405,669 0 0 0
COMMISSIONS 0 0 154,390 0 0 0
RESERVES 10,500 10,868 11,248 11,642 12,049 12,471
------- ------- ------- --------- --------- ---------
CASH FLOW 748,620 748,186 282 1,218,681 1,265,158 1,309,473
<CAPTION>
FY2003 FY2004 FY2005 FY2006 FY2007
<S> <C> <C> <C> <C> <C>
INCOME
- ------
MINIMUM RENT:
ALL TENANTS 1,400,012 1,077,333 1,362,826 1,534,418 1,588,122
--------- --------- --------- --------- ---------
TOTAL MINIMUM RENT 1,400,012 1,077,333 1,362,826 1,534,418 1,588,122
RECOVERIES:
REIMBURSABLE EXP. 188,394 140,655 177,874 202,725 207,878
--------- --------- --------- --------- ---------
TOTAL RECOVERIES 188,394 140,655 177,874 202,725 207,878
--------- --------- --------- --------- ---------
GROSS RENTAL
INCOME 1,588,406 1,217,988 1,540,700 1,737,143 1,796,000
CREDIT LOSS (31,768) (24,360) (30,814) (34,743) (35,920)
--------- --------- --------- --------- ---------
TOTAL INCOME 1,556,638 1,193,628 1,509,886 1,702,400 1,760,080
EXPENSES
COMMON AREA MAIN. 12,544 12,983 13,437 13,907 14,394
REAL ESTATE TAXES 119,627 122,019 124,460 126,949 129,488
INSURANCE 25,087 25,965 26,874 27,814 28,788
MANAGEMENT FEE 31,133 23,873 30,198 34,048 35,202
--------- --------- --------- --------- ---------
TOTAL EXPENSES 188,391 184,840 194,969 202,718 207,872
--------- --------- --------- --------- ---------
NET OPERATING
INCOME 1,368,247 1,008,788 1,314,917 1,499,682 1,552,208
ALTERATIONS 0 0 481,807 0 0
COMMISSIONS 0 0 183,367 0 0
RESERVES 12,907 13,359 13,826 14,310 14,811
--------- --------- --------- --------- ---------
CASH FLOW 1,355,340 995,429 635,917 1,485,372 1,537,397
</TABLE>
<PAGE>
================================================================================
DEMOGRAPHIC TRENDS - Dover MSA
Cushman & Wakefield, Inc.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
=============================================================================================================================
Population Estimate Projected CAGR CAGR CAGR
Statistics 1980 1990 1996 2000 1980-90 1990-96 1996-00
=============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
Dover MSA 98,270 111,850 122,500 128,440 1.3% 1.6% 1.2%
- -----------------------------------------------------------------------------------------------------------------------------
State of Delaware 594,940 669,050 720,720 748,590 1.2% 1.2% 1.0%
- -----------------------------------------------------------------------------------------------------------------------------
Mideastern U.S. (000) 42,274 43,708 44,724 45,300 0.3% 0.4% 0.3%
- -----------------------------------------------------------------------------------------------------------------------------
United States (000) 227,226 249,401 265,265 274,758 0.9% 1.0% 0.9%
=============================================================================================================================
Source: Woods & Poole Economics, Inc.
=============================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
=============================================================================================================================
Household Estimate Projected CAGR CAGR CAGR
Statistics 1980 1990 1996 2000 1980-90 1990-96 1996-00
=============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
Dover MSA 32,960 39,900 44,250 46,660 1.9% 1.7% 1.3%
- -----------------------------------------------------------------------------------------------------------------------------
State of Delaware 208,330 248,600 270,120 281,300 1.8% 1.4% 1.0%
- -----------------------------------------------------------------------------------------------------------------------------
Mideastern U.S. (000) 15,120 16,196 16,543 16,776 0.7% 0.4% 0.4%
- -----------------------------------------------------------------------------------------------------------------------------
United States (000) 80,834 92,210 97,977 101.726 1.3% 1.0% 0.9%
=============================================================================================================================
Source: Woods & Poole Economics, Inc.
=============================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
=============================================================================================================================
Per Capita Estimate Projected CAGR CAGR CAGR
Income 1980 1990 1996 2000 1980-90 1990-96 1996-00
=============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
Dover MSA $7,613 $14,565 $18,905 $22,546 6.7% 4.4% 4.5%
- -----------------------------------------------------------------------------------------------------------------------------
State of Delaware $10,357 $19,719 $24,618 $29,164 6.7% 3.8% 4.3%
- -----------------------------------------------------------------------------------------------------------------------------
Mideastern U.S. $10,798 $21,682 $26,928 $32,240 7.2% 3.7% 4.6%
- -----------------------------------------------------------------------------------------------------------------------------
United States $9,942 $18,666 $23,458 $28,133 6.5% 3.9% 4.6%
=============================================================================================================================
Source: Woods & Poole Economics, Inc.
=============================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
=============================================================================================================================
Retail Sales Estimate Projected CAGR CAGR CAGR
Trends 1980 1990 1996 2000 1980-90 1990-96 1996-00
=============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
Dover MSA ($Mil) $645 $1,046 $1,409 $1,407 9.1% 7.7% -0.1%
- -----------------------------------------------------------------------------------------------------------------------------
State of Deleware ($Mil) $4,216 $6,041 $6,860 $6,578 5.1% 2.2% -4.1%
- -----------------------------------------------------------------------------------------------------------------------------
South Atlantic U.S. ($Mil) $238,701 $325,787 $388,230 $418,512 6.4% 6.5% 7.8%
- -----------------------------------------------------------------------------------------------------------------------------
United States ($Mil) $1,395,243 $1,807,183 $2,079,201 $2,241,319 5.4% 5.5% 7.8%
=============================================================================================================================
Source: Sales & Marketing Management "Survey of Buying Power"
=============================================================================================================================
</TABLE>
================================================================================
REGIONAL.XLS Demographic Trends
<PAGE>
================================================================================
GROWTH PROJECTIONS - Dover MSA
Cushman & Wakefield, Inc.
- --------------------------------------------------------------------------------
Dover MSA
================================================================================
Population Estimate Projected CAGR CAGR
Statistics 1990 1996 2000 1990-96 1996-00
================================================================================
W&P - Dover MSA 111,650 122,500 128,440 1.6% 1.2%
- --------------------------------------------------------------------------------
Equifax - Norfolk MSA 110,993 122,879 129,120 1.7% 1.2%
================================================================================
Consensus Forecast: 1.2%
================================================================================
================================================================================
Household Estimate Projected CAGR CAGR
Statistics 1990 1996 2000 1990-96 1996-00
================================================================================
W&P - Norfolk MSA 32,960 44,250 46,660 5.0% 1.3%
- --------------------------------------------------------------------------------
Equifax - Norfolk MSA 32,737 45,040 47,880 5.5% 1.5%
================================================================================
Consensus Forecast 1.4%
================================================================================
================================================================================
Per Capita Estimate Projected CAGR CAGR
Income 1990 1996 2000 1990-96 1996-00
================================================================================
W&P - Norfolk MSA $ 14,565 $ 18,905 $ 22,546 4.4% 4.5%
- --------------------------------------------------------------------------------
Equifax - NorfoIk MSA $ 12,726 $ 15,621 $ 20,222 3.5% 6.7%
================================================================================
Consensus Forecast 5.6%
================================================================================
================================================================================
REGIONAL.XLS Growth Projections
<PAGE>
================================================================================
EMPLOYMENT TRENDS - Dover MSA & State of Delaware
Cushman & Wakefield, Inc.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
=====================================================================================================
Dover MSA Estimate Projected CAGR CAGR CAGR
Employment Statistics 1980 1990 1996 2000 1980-90 1990-96 1996-00
=====================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
Total Employment 46,240 58,780 68,040 71,500 2.4% 2.5% 1.2%
- -----------------------------------------------------------------------------------------------------
Farm/Agr. Services 2,070 1,910 1,950 1,890 -0.8% 0.3% -0.8%
- -----------------------------------------------------------------------------------------------------
Total Non-Farm Emp. 44,170 56,890 66,070 69,610 2.6% 2.5% 1.3%
- -----------------------------------------------------------------------------------------------------
Mining & Const. 1,730 3,620 4,090 4,330 7.7% 2.1% 1.4%
- -----------------------------------------------------------------------------------------------------
Manufacturing 7,190 6,860 6,390 6,330 -0.5% -1.2% -0.2%
- -----------------------------------------------------------------------------------------------------
T.C.P.U. 1,620 1,980 2,290 2,380 2.0% 2.5% 1.0%
- -----------------------------------------------------------------------------------------------------
Whlse/Retail Trade 7,380 11,360 15,580 17,150 4.4% 5.4% 2.4%
- -----------------------------------------------------------------------------------------------------
F.l.R.E. 2,060 2,410 2,830 2,880 1.6% 2.7% 0.4%
- -----------------------------------------------------------------------------------------------------
Services 6,630 11,760 14,930 16,190 5.9% 4.1% 2.0%
- -----------------------------------------------------------------------------------------------------
Government 17,560 18,900 19,960 20,350 0.7% 0.9% 0.5%
=====================================================================================================
Source: Woods & Poole Economics, Inc.; Dover MSA
=====================================================================================================
</TABLE>
<TABLE>
<CAPTION>
=====================================================================================================
State of Delaware Estimate Projected CAGR CAGR CAGR
Employment Statistics 1980 1990 1996 2000 1980-90 1990-96 1996-00
=====================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
Total Employment 311,320 422,630 450,700 466,440 3.1% 1.1% 0.9%
- -----------------------------------------------------------------------------------------------------
Farm/Agr. Services 7,290 8,320 8,400 8,310 1.3% 0.2% -0.3%
- -----------------------------------------------------------------------------------------------------
Total Non-Farm Emp. 304,020 414,320 442,300 458,140 3.1% 1.1% 0.9%
- -----------------------------------------------------------------------------------------------------
Mining & Const. 17,800 26,860 27,390 27,850 4.2% 0.3% 0.4%
- -----------------------------------------------------------------------------------------------------
Manufacturing 72,580 72,830 68,140 67,910 0.0% -1.1% -0.1%
- -----------------------------------------------------------------------------------------------------
T.C.P.U. 14,050 17,200 18,150 18,590 2.0% 0.9% 0.6%
- -----------------------------------------------------------------------------------------------------
Whlse/Retail Trade 61,270 84,390 92,410 96,330 3.3% 1.5% 1.0%
- -----------------------------------------------------------------------------------------------------
F.l.R.E. 21,730 46,150 52,290 57,870 7.8% 2.1% 2.6%
- -----------------------------------------------------------------------------------------------------
Services 61,950 107,630 122,360 127,450 5.7% 2.2% 1.0%
- -----------------------------------------------------------------------------------------------------
Government 54,640 59,260 61,560 62,140 0.8% 0.6% 0.2%
=====================================================================================================
Source: Woods & Poole Economics, Inc.; State of Delaware
=====================================================================================================
</TABLE>
================================================================================
REGIONAL. XLS Employment Trends
<PAGE>
[GRAPHIC OMITTED]
[Area Map of Dover]
AREA MAP OF DOVER
<PAGE>
================================================================================
DEMOGRAPHIC STATISTICS
Dover Mali (Dover, Maryland)
Cushman & Wakefield, Inc.
- --------------------------------------------------------------------------------
Effective Trade Dover State of United
Area MSA Delaware States (000)
================================================================================
- ----------------------------
POPULATION STATISTICS
- ----------------------------
1980 211,282 98,219 594,338 226,545,856
1990 242,904 110,993 666,168 248,709,872
1996 272,865 122,879 724,890 265,037,504
2001 293,539 130,972 768,365 277,157,184
Compound Annual Change
1980 - 1990 1.40% 1.23% 1.15% 0.94%
1990 - 1996 1.96% 1.71% 1.42% 1.07%
1996 - 2001 1.47% 1.28% 1.17% 0.90%
- --------------------------------------------------------------------------------
- ----------------------------
HOUSEHOLD STATISTICS
- ----------------------------
1980 72,897 32,737 207,081 80,389,688
1990 89,187 39,655 247,497 91,947,408
1996 102,276 45,040 275,714 100,130,936
2001 111,199 48,610 295,159 105,246,728
Compound Annual Change
1980 - 1990 2.04% 1.94% 1.80% 1.35%
1990 - 1996 2.31% 2.14% 1.82% 1.43%
1996 - 2001 1.69% 1.54% 1.37% 1.00%
- --------------------------------------------------------------------------------
- ----------------------------
AVERAGE HOUSEHOLD INCOME
- ----------------------------
1980 $18,143 $17,930 $21,173 $20,307
1990 $33,842 $34,908 $42,070 $38,453
1996 $40,247 $41,394 $50,147 $49,031
2001 $51,184 $52,843 $65,732 $65,729
Compound Annual Change
1980 - 1990 6.43% 6.89% 7.11% 6.59%
1990 - 1996 2.93% 2.88% 2.97% 4.13%
1996 - 2001 4.93% 5.01% 5.56% 6.04%
- --------------------------------------------------------------------------------
- ----------------------------
PER CAPITA INCOME STATISTICS
- ----------------------------
1980 $6,260 $6,216 $7,449 $7,298
1990 $12,682 $12,726 $15,854 $14,420
1996 $15,609 $15,621 $19,645 $18,905
2001 $20,085 $29,695 $26,119 $25,467
Compound Annual Change
1980 - 1990 7.32% 7.43% 7.85% 7.05%
1990 - 1996 4.24% 4.18% 4.38% 5.57%
1996 - 2001 5.17% 13.71% 5.86% 6.14%
- --------------------------------------------------------------------------------
SOURCE: Equifax National Decision Systems
================================================================================
<PAGE>
================================================================================
COMPARABLE MALL SALES RATIOS
Cushman & Wakefield, Inc.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Mall GLA Ratio Mall Mall Shop
No. Stores/ Mall Shop GLA/ As % Of Mall Shop Sales '93/ Shop Sales/ Sales As %
No. Mall Location Dept. Stores Total GLA Total GLA Dept. Store Sales '93 Anchor Sales Of Total Sales
====================================================================================================================================
<C> <S> <C> <C> <C> <C> <C> <C>
1 Central- 213 499,868 39.4% $166,320,000 93.3% 48.3%
Connecticut MSA 5 1,270,146 $178,265,000
- ------------------------------------------------------------------------------------------------------------------------------------
2 North-Central 108 292,877 41.2% $76,520,000 82.8% 45.3%
Connecticut MSA 3 711,626 $92,400,000
- ------------------------------------------------------------------------------------------------------------------------------------
3 Central- 223 525,741 49.6% $137,500,000 117.5% 54.0%
New Jersey MSA 4 1,060,047 $117,000,000
- ------------------------------------------------------------------------------------------------------------------------------------
4 North-Central 165 348,228 40.9% $164,021,000 110.5% 52.5%
New Jersey MSA 3 851,104 $148,427,000
- ------------------------------------------------------------------------------------------------------------------------------------
5 Baltimore- 123 244,694 37.0% $61,597,000 84.1% 45.7%
Washington D.C. MSA 3 661,116 $73,215,000
- ------------------------------------------------------------------------------------------------------------------------------------
6 Baltimore, 139 242,746 30.1% $64,290,000 94.7% 48.6%
Maryland MSA 4 807,642 $67,915,000
- ------------------------------------------------------------------------------------------------------------------------------------
7 Dutchess County, 149 343,266 31.9% $87,790,100 70.9% 41.5%
New York MSA 6 1,075,709 $123,771,000
- ------------------------------------------------------------------------------------------------------------------------------------
8 Broome County, 128 316,907 38.8% $85,488,578 73.2% 42.2%
New York MSA 5 861,310 $89,494,304
- ------------------------------------------------------------------------------------------------------------------------------------
9 Orange County, 140 361,928 36.8% $110,955,000 134.4% 57.3%
New York MSA 5 983,142 $82,580,100
- ------------------------------------------------------------------------------------------------------------------------------------
10 North Boston, 62 157,711 48.6% $29,581,000 94.1% 48.5%
Massachusetts MSA 2 324,751 $31,435,000
- ------------------------------------------------------------------------------------------------------------------------------------
11 Prince William County, 126 270,197 39.3% $43,637,645 76.9% 43.5%
Virginia MSA 4 686,844 $56,731,597
- ------------------------------------------------------------------------------------------------------------------------------------
12 Nashville, 142 372,924 47.7% $55,077,000 139.8% 58.3%
Tennessee MSA 2 782,224 $39,383,000
- ------------------------------------------------------------------------------------------------------------------------------------
13 Minneapolis, 100 203,095 20.6% $44,500,000 31.5% 24.0%
Minnesota MSA 5 987,956 $141,100,000
- ------------------------------------------------------------------------------------------------------------------------------------
14 Las Vegas, 138 286,938 35.0% $103,000,000 77.0% 43.5%
Nevada MSA 5 819,374 $133,846,000
- ------------------------------------------------------------------------------------------------------------------------------------
15 South Seattle- 117 262,593 35.6% $64,186,000 74.7% 42.7%
Federal Way MSA 4 738,418 $85,970,000
- ------------------------------------------------------------------------------------------------------------------------------------
16 North San Francisco- 92 193,086 45.1% $63,200,000 71.8% 41.8%
Marin County MSA 2 427,976 $88,000,000
====================================================================================================================================
Survey Mean 135 307,673 37.7% $83,602,708 86.3% 46.3%
4 815,587 $96,845,813
====================================================================================================================================
</TABLE>
<PAGE>
================================================================================
MARKET SHARE ANALYSIS - Primary Trade Area GAFO Sales
Dover Commons (Dover Delaware)
Cushman & Wakefield, Inc.
================================================================================
- --------------------
SUBJECT SALES VOLUME 1995
- -------------------- ----
Subject Property Sales
Department Store Sales: $84,292,550(1)
Mall Shops: $47,329,910(1)
Total Center Sales: $131,622,460(1)
- ------------------
SUBJECT GAFO SALES
- ------------------
Total Subject Sales: $131,622,460
Less: Non-GAFO Sales (%) at: 8.0% ($10,529,797)
---- -------------
Total Subject GAFO Sales: $121,092,663
Less: Sales Inflow (%) at: 25.0% ($30,273,166)
----- -------------
Total GAFO Sales at Subject: $90,819,497
- ------------------------
TRADE AREA GAFO ANALYSIS 1995
- ------------------------ ----
Trade Area GAFO Potential
Effective-No. Households: 102,276(2)
Effective-Avg Household Income: $40,247(2)
Trade Area Aggregate Income: $4,116,302,172
GAFO Potential (%) at: 14.0% $576,282,304
----- ------------
- ------------------------
MARKET SHARE CALCULATION
- ------------------------
Total Subject GAFO Sales: $90,819,497
Total Trade Area GAFO Potential: $576,282,304
Market Share of Trade Area GAFO Potential: 15.8%
-----
- ----------
(1) Based on actual 1995 sales as reported by management.
(2) Household and Income growth based upon Equifax National Decision Systems
projections for Effective Trade Area.
================================================================================
Cushman Wakefield, Inc. GAFO Market Share Analysis 1995 Confidential
<PAGE>
[GRAPHIC OMITTED]
[Map of Mall Area]
MAP OF MALL AREA
<PAGE>
================================================================================
ANNUAL CASH FLOW REPORT
Dover Mall (Dover, Delaware)
Cushman & Wakefield, Inc.
================================================================================
<TABLE>
<CAPTION>
1997 1998 1999 2000 2001 2002 2003
---- ---- ---- ---- ---- ---- ----
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
<S> <C> <C> <C> <C> <C> <C> <C>
- ----------------
OPERATING INCOME
- ----------------
MINIMUM RENT
Mall Shop Tenants $3,706,871 $4,284,047 $4,832,969 $4,957,216 $4,983,807 $5,018,981 $5,160,982
Food Court Tenants $304,873 $371,928 $377,426 $388,563 $400,042 $411,906 $416,340
Kiosk Tenants $73,434 $76,075 $79,367 $77,801 $91,617 $91,897 $92,765
Anchor Tenants $488,928 $488,928 $488,928 $488,928 $488,928 $488,928 $488,929
Theatre $143,495 $143,495 $155,800 $288,378 $288,378 $288,378 $288,378
-------- -------- -------- -------- -------- -------- --------
Subtotal: $4,717,601 $5,364,473 $5,934,490 $6,200,886 $6,252,772 $6,300,090 $6,447,394
RECOVERIES
UTL-Utility Income $181,043 $206,855 $228,699 $254,479 $260,552 $266,753 $275,128
CAM-Mall Shops $1,526,832 $1,699,080 $1,814,842 $1,927,595 $1,958,470 $1,986,932 $2,039,157
TAX-Mall Shops $280,284 $333,584 $375,666 $411,207 $423,849 $450,797 $472,666
CAM-Anchor Tenants $97,949 $97,949 $97,949 $97,949 $97,949 $97,949 $97,949
TAX-Anchor Tenants $49,666 $49,666 $49,666 $49,666 $49,666 $49,666 $49,666
FCT-Food Court Income $76,403 $92,761 $92,162 $88,616 $92,855 $96,103 $95,846
------- ------- ------- ------- ------- ------- -------
Subtotal: $2,212,177 $2,479,895 $2,658,984 $2,829,512 $2,883,341 $2,948,200 $3,030,412
Overage Rent $450,354 $441,872 $371,284 $362,441 $397,043 $442,216 $464,482
Sales Volume (000) $78,768 $84,517 $89,013 $92,603 $95,232 $97,845 $100,548
Gross Rental Income: $7,380,132 $8,286,240 $8,964,758 $9,392,839 $9,533,156 $9,690,506 $9,942,288
---------- ---------- ---------- ---------- ---------- ---------- ----------
Credit Loss ($163,644) ($260,752) ($358,591) ($375,714) ($381,326) ($387,620) ($397,692)
Temporary Income $101,250 $104,288 $107,416 $110,639 $113,958 $117,377 $120,898
Miscellaneous Income $25,313 $26,072 $26,854 $27,660 $28,489 $29,344 $30,224
------- ------- ------- ------- ------- ------- -------
Total Income: $7,343,051 $8,155,848 $8,740,437 $9,155,424 $9,294,277 $9,449,607 $9,695,718
- ------------------
OPERATING EXPENSES
- ------------------
EXPENSES
Common Area Maint. $1,303,740 $1,349,371 $1,396,598 $1,445,479 $1,496,071 $1,548,433 $1,602,629
Real Estate Taxes $418,008 $432,639 $447,781 $463,453 $479,674 $496,463 $513,839
Utility Expense $440,438 $453,651 $467,260 $481,278 $495,716 $510,588 $525,905
Food Court Expense $45,656 $47,254 $48,908 $50,620 $52,392 $54,225 $56,123
General & Administrative $40,583 $42,004 $43,474 $44,995 $46,570 $48,200 $49,887
Marketing Expense $35,510 $36,753 $38,040 $39,371 $40,749 $42,175 $43,651
Miscellaneous $50,729 $52,505 $54,342 $56,244 $58,213 $60,250 $62,359
Management Fee $155,038 $174,190 $189,173 $196,900 $199,495 $202,269 $207,357
-------- -------- -------- -------- -------- -------- --------
Total Expenses: $2,489,702 $2,588,367 $2,685,576 $2,778,340 $2,868,880 $2,962,603 $3,061,750
NET OPERATING INCOME $4,853,349 $5,567,481 $6,054,861 $6,377,084 $6,425,397 $6,487,004 $6,633,968
Alterations $271,503 $269,017 $149,337 $9,405 $0 $45,827 $39,340
Commissions $98,460 $107,297 $64,512 $3,923 $0 $21,193 $17,234
Reserves for Replacement $83,603 $86,529 $89,557 $92,692 $95,936 $99,294 $102,769
Capital Repairs $400,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000
-------- -------- -------- -------- -------- -------- --------
Subtotal $853,566 $662,843 $503,406 $306,020 $295,936 $366,314 $359,343
NET CASH FLOW $3,999,783 $4,904,638 $5,551,466 $6,071,064 $6,129,461 $6,120,690 $6,274,625
<CAPTION>
2004 2005 2006 2007
---- ---- ---- ----
Year 8 Year 9 Year 10 Year 11
<S> <C> <C> <C> <C>
- ----------------
OPERATING INCOME
- ----------------
MINIMUM RENT
Mall Shop Tenants $5,279,227 $5,298,704 $5,441,658 $5,563,923
Food Court Tenants $429,376 $449,373 $448,740 $434,229
Kiosk Tenants $94,302 $97,521 $100,419 $98,879
Anchor Tenants $488,928 $488,928 $488,928 $488,928
Theatre $295,588 $317,216 $317,216 $317,216
-------- ------- -------- --------
Subtotal: $6,587,421 $6,651,742 $6,796,961 $6,903,175
RECOVERIES
UTL-Utility Income $290,807 $322,928 $336,405 $350,538
CAM-Mall Shops $2,099,569 $2,187,152 $2,275,158 $2,369,202
TAX-Mall Shops $484,246 $490,427 $511,182 $528,518
CAM-Anchor Tenants $97,949 $97,949 $97,949 $97,949
TAX-Anchor Tenants $49,666 $49,666 $49,666 $49,666
FCT-Food Court Income $91,939 $96,799 $99,308 $95,200
------- ------- ------- -------
Subtotal: $3,114,176 $3,244,921 $3,369,668 $3,491,073
Overage Rent $409,415 $403,729 $413,800 $457,086
Sales Volume (000) $103,018 $105,678 $109,856 $112,240
Gross Rental Income: $10,111,012 $10,300,392 $10,580,429 $10,851.334
----------- ----------- ----------- -----------
Credit Loss ($404,441) ($412,015) ($423,217) ($434,053)
Temporary Income $124,525 $128,260 $132,108 $136,072
Miscellaneous Income $31,131 $32,065 $33,027 $34,018
------- ------ ------- -------
Total Income: $9,862,227 $10,048,702 $10,322,347 $10,587,371
- ------------------
OPERATING EXPENSES
- ------------------
EXPENSES
Common Area Maint. $1,658,721 $1,716,776 $1,776,863 $1,839,053
Real Estate Taxes $531,823 $550,437 $569,702 $589,642
Utility Expense $541,682 $557,933 $574,671 $591,911
Food Court Expense $58,087 $60,121 $62,225 $64,403
General & Administrative $51,633 $53,440 $55,311 $57,247
Marketing Expense $45,179 $46,760 $48,397 $50,091
Miscellaneous $64,542 $66,801 $69,139 $71,558
Management Fee $209,905 $211,664 $216,323 $220,808
------- -------- -------- --------
Total Expenses: $3,161,572 $3,263,932 $3,372,631 $3,484,713
NET OPERATING INCOME $6,700,655 $6,784,770 $6,949,716 $7,102,658
Alterations $191,664 $177,196 $198,605 $200,601
Commissions $82,011 $73,524 $85,895 $87,375
Reserves for Replacement $106,366 $110,089 $113,942 $117,930
Capital Repairs $200,000 $200,000 $200,000 $200,000
-------- -------- -------- --------
Subtotal $580,041 $560,809 $598,442 $605,906
NET CASH FLOW $6,120,614 $6,223,961 $6,351,274 $6,496,752
</TABLE>
<PAGE>
================================================================================
RECENT LEASING ACTIVITY - Mall Shops By Size
Dover Mall (Dover, Delaware)
Cushman & Wakefield, Inc.
================================================================================
<TABLE>
<CAPTION>
======================================================================================================================
TENANT CATEGORY TENANT AREA INITIAL INITIAL RENT FINAL
(By Area/Size) NAME/SUITE SQ/FT ANNUAL RENT PER SQ/FT ANNUAL RENT
======================================================================================================================
<S> <C> <C> <C> <C> <C>
1: <750 SQ/FT Original Cookie 720 $36,999 $51.39 $39,999
- ------------- Sweet Factory 651 $30,000 $46.08 $35,000
Fast Feet 420 $18,000 $42.86 $18,000
Claire's Boutique 750 $33,000 $44.00 $39,000
----------------- --- ------- ------ -------
SUBTOTAL: Tenants 4 2,541 $117,999 $46.44 $131,999
2: 751-1,200 SQ/FT General Nutrition 1,194 $38,805 $32.50 $41,790
- ------------------ Hanover Shoes 898 $41,999 $46.77 $48,000
Pearle Vision 903 $23,478 $26.00 $27,090
Master Cuts 965 $25,090 $26.00 $28,950
----------- --- ------- ------ -------
SUBTOTAL: Tenants: 4 3,960 $129,372 $32.67 $145,830
3: 1,201-2,000 SQ/FT Just Sport 1,870 $41,140 $22.00 $41,140
- -------------------- Electronics Boutique 1,412 $36,006 $25.50 $39,999
Unisex 1,873 $46,825 $25.00 $46,825
Expressly Portrait 1,442 $39,999 $27.74 $39,999
------------------ ----- ------- ------ -------
SUBTOTAL: Tenants: 4 6,597 $163,970 $24.86 $167,963
4: 2,001-3,500 SQ/FT Children's Place 3,309 $59,562 $18.00 $59,562
- -------------------- Zales Jewelers 2,882 $74,990 $26.02 $95,000
Footaction 3,010 $75,250 $25.00 $87,290
Spencer Gifts 2,015 $46,345 $23.00 $54,405
Gift Design Gallery 2,463 $64,038 $26.00 $78,816
Legends Sporting Goods 3,100 $50,000 $16.13 $80,600
Waldenbooks 3,317 $86,242 $26.00 $99,510
----------- ----- ------- ------ -------
SUBTOTAL: Tenants: 7 20,096 $456,427 $22.71 $555,183
5: 3,501-5,000 SQ/FT American Eagle 4,176 $75,168 $18.00 $75,168
- -------------------- Aeropastale 4,274 $89,754 $21.00 $115,398
Lane Bryant 4,337 $78,066 $18.00 $78,066
The Disney Store 4,720 $72,039 $15.26 $99,120
---------------- ----- ------- ------ -------
SUBTOTAL: Tenants: 4 17,507 $315,027 $17.99 $367,752
6: 5,001-10,000 SQ/FT Lerner NY 7,311 $131,598 $18.00 $146,220
- --------------------- Victoria's Secret 6,168 $111,024 $18.00 $123,360
Limited 7,220 $129,960 $18.00 $144,399
------- ----- -------- ------ --------
SUBTOTAL: Tenants: 3 20,699 $372,582 $18.00 $413,979
7: > 10,099 SQ/FT Express/Structure 14,182 $269,458 $19.00 $312,003
- ----------------- ----------------- ------ -------- ------ --------
SUBTOTAL: Tenants: 1 14,182 $269,458 $19.00 $312,003
======================================================================================================================
TOTAL Tenants: 27 85,582 $1,824,835 $2l.32 $2,094,709.00
======================================================================================================================
<CAPTION>
=========================================================================================
TENANT CATEGORY TENANT FINAL RENT % RENTAL
(By Area/Site) NAME/SUITE PER SQ/FT INCREASE
=========================================================================================
<S> <C> <C> <C>
1: <750 SQ/FT Original Cookie $55.55 8.11%
- ------------- Sweet Factory $53.76 16.67%
Fast Feet $42.86 0.00%
Claire's Boutique $52.00 18.18%
----------------- ------ ------
SUBTOTAL: Tenants 4 $51.95 11.86%
2: 751-1,200 SQ/FT General Nutrition $35.00 7.69%
- ------------------ Hanover Shoes $53.45 14.29%
Pearle Vision $30.00 15.38%
Master Cuts $30.00 15.38%
----------- ------ ------
SUBTOTAL: Tenants: 4 $36.83 12.72%
3: 1,201-2,000 SQ/FT Just Sport $22.00 0.00%
- -------------------- Electronics Boutique $28.33 11.09%
Unisex $25.00 0.00%
Expressly Portrait $27.74 0.00%
------------------ ------ -----
SUBTOTAL: Tenants: 4 $25.46 2.44%
4: 2,001-3,500 SQ/FT Children's Place $18.00 0.00%
- -------------------- Zales Jewelers $32.96 26.68%
Footaction $29.00 16.00%
Spencer Gifts $27.00 17.39%
Gift Design Gallery $32.00 23.08%
Legends Sporting Goods $26.00 61.20%
Waldenbooks $30.00 15.38%
----------- ------ ------
SUBTOTAL: Tenants: 7 $27.63 21.64%
5: 3,501-5,000 SQ/FT American Eagle $18.00 0.00%
- -------------------- Aeropastale $27.00 28.57%
Lane Bryant $18.00 0.00%
The Disney Store $21.00 37.59%
---------------- ------ ------
SUBTOTAL: Tenants: 4 $21.01 16.74%
6: 5,001-10,000 SQ/FT Lerner NY $20.00 11.11%
- --------------------- Victoria's Secret $20.00 11.11%
Limited $20.00 11.11%
------- ------ ------
SUBTOTAL: Tenants: 3 $20.00 11.11%
7: > 10,099 SQ/FT Express/Structure $22.00 15.79%
- ----------------- ----------------- ------ ------
SUBTOTAL: Tenants: 1 $22.00 15.79%
=========================================================================================
TOTAL Tenants: 27 $24.48 14.79%
=========================================================================================
</TABLE>
<PAGE>
================================================================================
FOOD COURT ANALYSIS
DOVER MALL
Cushman & Wakefield, Inc.
<TABLE>
<CAPTION>
===================================================================================
1996 Rent 1995 Sales
Suite Tenant Lease Date Area/sf Rent SF Sales SF
<C> <C> <C> <C> <C> <C> <C> <C>
===================================================================================
3042 China Court 2/86 490 $ 18,000 $ 36.73 $ 210,415 $429.42
- -----------------------------------------------------------------------------------
3048 A & W Hotdogs 1/93 828 $ 27,000 $ 32.61 $ 188,931 $228.18
- -----------------------------------------------------------------------------------
3056 McDonald's * 5/96 952 $ 40,000 $ 42.02 $ 207,850 $218.33
- -----------------------------------------------------------------------------------
3060 Sbarro 1/89 785 $ 45,000 $ 57.32 $ 513,561 $654.22
- -----------------------------------------------------------------------------------
3064 Boardwalk Fries 1/93 834 $ 35,000 $ 41.97 $ 230,410 $276.27
- -----------------------------------------------------------------------------------
3068 Chik-Fil-A 11/93 1,044 $ 30,700 $ 29.41 $ 534,683 $512.15
- -----------------------------------------------------------------------------------
3072 Bull on the Beach 1/89 2,203 $ 52,872 $ 24.00 $ 558,043 $253.31
- -----------------------------------------------------------------------------------
Total 7 7,136 $248,572 -- $2,443,893 --
Average 1,019 $ 35,510 $ 34.83 -- $342.47
===================================================================================
</TABLE>
* McDonald's moved from in-line store to food court in May 1996. The chart
reflects McDonald's sales/sf from former location.
<PAGE>
================================================================================
WEIGHTED AVERAGE MARKET RENT
DOVER MALL
================================================================================
SUITE APPLICABLE PRO RATA 1996 INITIAL WEIGHTED
SIZE GLA(SQ.FT.) SHARE MARKET RENT AVERAGE
---- ----------- ----- ----------- -------
================================================================================
UNDER - 750 SF 5,080 2.28% $45.00 $1.03
751 - 1,200 SF 11,961 5.38% $33.00 $1.78
1,201 - 2,000 SF 12,144 5.46% $25.00 $1.37
2,001 - 3,500 SF 60,769 27.33% $22.50 $6.15
3,501 - 5,000 SF 58,936 26.50% $19.00 $5.04
5,001 - 10,000 SF 41,078 18.47% $18.00 $3.33
OVER - 10,000 SF 32,392 14.57% $15.00 $2.19
================================================================================
MAIL SHOP GLA 222,360 100.00% $20.86
================================================================================
Food Court 9,218 Anchors 439,460
Kiosks 456
================================================================================
TOTAL MALL GLA 232,034 TOTAL PROJECT 671,494
================================================================================
================================================================================
<PAGE>
================================================================================
LEASE-UP/ABSORPTION OF VACANT SPACE
DOVER MALL
Cushman & Wakefield, Inc.
================================================================================
PRO-JECT
TENANT # Suite Size/SF Description Annual Rent Rent/SF Lease Date
- --------------------------------------------------------------------------------
40 3040 1,046 Food court $41,840 $40.00 7/96
- --------------------------------------------------------------------------------
56 3098 843 In-line store $27,819 $33.00 7/96
- --------------------------------------------------------------------------------
42 3044 304 Food court $12,160 $40.00 7/97
- --------------------------------------------------------------------------------
66 4044 2,989 In-line store $67,253 $22.50 10/96
- --------------------------------------------------------------------------------
80 5032 3,158 In-line store $71,055 $22.50 10/96
- --------------------------------------------------------------------------------
82 5040 8,120 In-line store $146,160 $18.00 1/97
- --------------------------------------------------------------------------------
23 2016 2,016 In-line store $45,360 $22.50 1/97
- --------------------------------------------------------------------------------
86 5061 2,385 In-line store $53,663 $22.50 4/97
- --------------------------------------------------------------------------------
87 5062 1,483 In-line store $37,075 $25.00 4/97
- --------------------------------------------------------------------------------
84 5052 965 In-line store $31,845 $33.00 7/97
- --------------------------------------------------------------------------------
50 3076 567 In-line store $25,515 $45.00 7/97
- --------------------------------------------------------------------------------
70 4068 609 In-line store $27,405 $45.00 10/97
- --------------------------------------------------------------------------------
43 3048 732 Food court $29,280 $40.00 10/97
- --------------------------------------------------------------------------------
72 5004 1,192 In-line store $39,336 $33.00 10/97
- --------------------------------------------------------------------------------
4 1016 2,408 In-line store $54,180 $22.50 1/98
- --------------------------------------------------------------------------------
17 1088 3,951 In-line store $75,069 $19.00 1/98
- --------------------------------------------------------------------------------
9 1044 1,360 In-line store $34,000 $25.00 1/98
- --------------------------------------------------------------------------------
TOTAL 34,128 $819,014 $24.00
================================================================================
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
COMMON AREA MAINTENANCE EXPENSE COMPARABLES
Cushman & Wakefield, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Budget Year No. Total Shop Budgeted Expense
No. Area Location State Year Built Stories GLA GLA CAM Expense Per Sq/Ft Location
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 Saratoga County MSA NY 1995 1990/91/93 1 656,501 256,668 $1,900,000 $7.40 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
2 Syracuse MSA NY 1995 1954/96 2 1,035,525 410,818 $2,750,000 $6.69 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
3 Syracuse MSA NY 1995 1988/94 1 776,571 311,557 $2,100,000 $6.74 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
4 Rochester MSA NY 1995 1967/93 2 1,533,574 495,040 $3,265,000 $6.60 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
5 Jefferson County MSA NY 1995 1986/93 1 635,765 209,873 $922,000 $4.39 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
6 Buffalo MSA NY 1996 1985/89 1 753,105 285,771 $1,665,000 $5.83 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
7 White Plains MSA NY 1995 1980/93 4 882,689 326,774 $3,190,000 $9.76 Urban
- ------------------------------------------------------------------------------------------------------------------------------------
8 Fairfield County MSA CT 1995 1986/91 2 1,270,146 499,868 $3,583,000 $7.17 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
9 Meriden MSA CT 1994 1971/94 2 711,626 292,877 $2,550,000 $8.71 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
10 Worcester County MSA MA 1996 1971/87 1 445,875 182,372 $1,410,000 $7.73 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
11 Boston MSA MA 1995 1980/93 1 322,120 155,080 $1,600,000 $10.32 Urban
- ------------------------------------------------------------------------------------------------------------------------------------
12 Bristol County MSA MA 1995 1992 2 1,005,595 349,107 $2,055,000 $5.89 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
13 Bristol County MSA MA 1995 1987/89 2 967,363 374,630 $2,762,000 $7.37 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
14 Essex County MSA MA 1995 1993/94 2 863,344 329,065 $2,315,000 $7.04 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
15 Kingston MSA MA 1994 1989/92 1 771,007 295,562 $1,682,000 $5.69 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
16 Burlington MSA VT 1995 1979/89/92 1 490,424 185,398 $1,000,000 $5.39 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
17 Bucks County MSA PA 1995 1968/75 1 348,309 305,212 $1,824,000 $5.98 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
18 Westminster MSA MD 1995 1987/94 1 524,964 193,557 $1,350,000 $6.97 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
19 Washington-Baltimore MD 1995 1979/93 2 661,639 245,217 $1,880,000 $7.67 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
20 Baltimore MSA MD 1995 1956/91 1 863,376 242,376 $1,940,000 $8.00 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
21 Prince William Cty. MSA VA 1995 1972/96 1 716,796 278,494 $1,600,000 $5.75 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
22 Arlington MSA VA 1994 1986 4 491,057 222,800 $1,930,000 $8.66 Urban
- ------------------------------------------------------------------------------------------------------------------------------------
23 Chicago/DuPage County IL 1995 1962/91 1 2,012,865 830,287 $5,790,000 $6.97 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
24 Chicago/DuPage County IL 1995 1975/96 2 1,477,103 569,926 $4,928,000 $8.65 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
25 Chicago/Cook County IL 1995 1976/94 2 1,251,294 499,999 $4,176,000 $8.35 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
26 Vernon Hills MSA IL 1995 1973/89 2 1,063,706 503,480 $2,500,000 $4.97 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
27 Bloomingdale MSA IL 1995 1981/88/91 2 1,292,186 427,609 $2,030,000 $4.75 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
28 Minneapolis MSA MN 1995 1962/94 1 982,228 201,561 $1,950,000 $9.67 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
29 Milwaukee MSA WN 1995 1972 1 1,014,851 395,598 $2,420,000 $6.12 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
30 Milwaukee MSA WN 1995 1970 1 1,257,676 371,420 $2,700,000 $7.27 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
31 Genesee County MSA MI 1995 1980/93 1 451,036 230,625 $902,000 $3.91 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
32 Louisville/Clark County IN 1995 1990 1 750,343 306,059 $1,676,000 $5.48 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
33 Indianapolis MSA IN 1995 1966/87 1 1,239,059 260,359 $1,431,000 $5.50 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
34 Tampa MSA FL 1995 1995 1 977,047 359,579 $1,980,000 $5.51 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
35 Plantation MSA FL 1995 1979/93 1 1,004,061 282,952 $1,829,000 $6.46 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
36 Miami MSA FL 1995 1982 1 1,120,827 290,385 $1,820,000 $6.27 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
37 Coral Springs MSA FL 1995 1984/96 1 1,171,127 293,183 $1,700,000 $5.80 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
38 North/Central Kansas KS 1995 1987/90 1 400,307 185,324 $830,000 $4.48 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
39 Amarillo MSA TX 1995 1982/86 1 889,508 316,190 $1,180,000 $3.73 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
40 Las Vegas MSA NV 1995 1992 1 241,580 241,580 $3,190,000 $13.20 Urban
- ------------------------------------------------------------------------------------------------------------------------------------
41 Las Vegas MSA NV 1994 1981/93 2 819,374 286,936 $2,455,000 $8.56 Urban
- ------------------------------------------------------------------------------------------------------------------------------------
42 Knoxville MSA TN 1995 1972/94 1 1,333,018 382,150 $1,810,000 $4.74 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
43 Nashville MSA TN 1995 1990 2 716,462 373,662 $2,280,000 $6.10 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
44 Riverside County MSA CA 1995 1970/91 1 1,044,536 411,640 $3,000,000 $7.29 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
45 Seattle MSA WA 1995 1979/95 1 1,012,754 311,019 $1,400,000 $4.50 Suburban
====================================================================================================================================
Survey Mean: 894,452 328,436 $2,205,556 $6.76
====================================================================================================================================
</TABLE>
<PAGE>
================================================================================
OPERATING EXPENSE STATISTICS Regional & Super-Regional Malls
Cushman & Wakefield, Inc. East
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
ULI ULI ULI ULI ULI ULI ULI ULI
--- --- --- --- --- --- --- ---
Super-Regional Super-Regional Super-Regional Super-Regional Regional Regional Regional Regional
Centers/ Centers/ Centers/ Centers/ Centers/ Centers/ Centers/ Centers/
U.S. U.S. East East U.S. U.S. East East
Average Median Average Median Average Median Average Median
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- --------------------
Property Profile
- --------------------
Total GLA: 999,544 1,009,585 935,436 937,742 582,893 579,154 644,794 676,000
Total Owned GLA: 563,689 535,272 531,481 453,976 461,822 435,855 512,183 448,114
Shop Sales/sf*: $203.09 $198.93 $220.64 $183.81 $176.16 $163.54 $204.96 $183.05
Anchor sales/sf: $149.38 $138.66 $152.35 $136.98 $156.30 $152.29 $174.78 $176.70
- --------------------
Operating Income
- --------------------
Minimum Rent $16.30 $16.79 $17.14 $18.17 $12.05 $11.33 $13.62 $11.99
Overage Rent: $1.14 $1.04 $1.40 $1.25 $0.86 $0.76 $0.92 $1.00
CAM Charges: $4.68 $4.60 $5.01 $4.70 $3.34 $3.23 $4.33 $4.02
Property Taxes: $1.72 $1.54 $1.79 $1.52 $1.13 $1.08 $1.62 $1.32
Insurance: $0.11 $0.06 $0.13 $0.14 $0.09 $0.08 $0.13 $0.05
Utilities: $1.74 $1.84 $2.38 $2.43 $1.55 $1.18 $1.35 $0.65
Other: $1.15 $0.62 $1.24 $0.53 $0.42 $0.37 $0.28 $0.34
------ ------ ------ ------ ------ ------ ------ ------
Total Income: $27.32 $27.32 $29.08 $28.69 $19.86 $18.98 $23.25 $22.25
- --------------------
Operating Expenses
- --------------------
Total Maintenance**: $4.50 $4.45 $4.85 $4.67 $3.43 $3.16 $4.11 $3.50
Real Estate Taxes: $1.86 $1.55 $2.04 $1.51 $1.27 $1.16 $1.75 $1.19
Insurance: $0.32 $0.28 $0.40 $0.29 $0.26 $0.23 $0.30 $0.26
Advertising: $0.60 $0.44 $0.83 $0.61 $0.56 $0.48 $0.64 $0.35
Administrative***: $0.87 $0.74 $0.82 $0.71 $0.93 $0.82 $0.96 $0.80
Management Fee: $0.63 $0.59 $0.61 $0.55 $0.46 $0.39 $0.53 $0.42
------- --------- ------- ------- ------- ------- ------- -------
Total Expenses: $9.26 $8.87 $9.84 $8.47 $7.35 $6.63 $8.89 $7.38
OER: 33.9% 32.5% 33.8% 29.6% 37.0% 34.9% 38.2% 33.2%
- --------------------
Net Operating Income $17.63 $17.12 $18.72 $17.01 $12.02 $10.85 $14.33 $13.28
- --------------------
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
ICSC ICSC ICSC ICSC ICSC ICSC
---- ---- ---- ---- ---- ----
Enclosed Malls Enclosed Malls Enclosed Malls Enclosed Malls Enclosed Malls Enclosed Malls
U.S. U.S. U.S. U.S. East East
Total 500,000- 800,000- Over Median Median
Survey 799,999sf 999,999sf 1,000,000sf <800,000sf >800,000sf
============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
- --------------------
Property Profile
- --------------------
Total GLA: 744,050 617,499 900,813 1,148,133 324,816 988,503
Total Owned GLA: 441,394 460,399 515,392 575,309 280,740 635,789
Shop Sales/sf*: $222.04 $201.55 $259.74 $255.55 $161.96 $251.73
Anchor sales/sf: $159.39 $145.82 $164.96 $171.34 $160.49 $174.86
- --------------------
Operating Income
- --------------------
Minimum Rent $17.60 $15.38 $19.85 $21.60 $16.32 $22.97
Overage Rent: -- -- -- -- -- --
CAM Charges: $5.73 $5.45 $8.23 $7.24 $4.28 $7.99
Property Taxes: $1.64 $1.14 $2.76 $2.82 $1.63 $3.45
Insurance: $0.15 $0.17 $0.19 $0.13 $0.13 $0.15
Utilities: $0.73 $1.56 $0.78 $1.08 $0.40 $1.05
Other: $0.28 $0.22 $0.38 $0.39 $0.10 $0.54
------ ------ ------ ------ ------ ------
Total Income: $27.60 $26.22 $32.90 $36.06 $21.61 $39.42
- --------------------
Operating Expenses
- --------------------
Total Maintenance**: $4.33 $4.65 $5.45 $5.52 $3.27 $6.11
Real Estate Taxes: $2.31 $1.82 $3.32 $3.30 $2.37 $3.95
Insurance: $0.37 $0.34 $0.42 $0.43 $0.39 $0.43
Advertising: $1.18 $1.04 $1.37 $1.81 $0.77 $1.37
Administrative***: $1.05 $1.02 $1.21 $1.29 $0.83 $1.51
Management Fee: $0.75 $0.65 $0.91 $0.95 $0.51 $1.06
------- ------- ------- --------- ------- -------
Total Expenses: $11.06 $10.60 $12.65 $13.66 $10.09 $15.59
OER: 40.1% 40.0% 38.4% 37.9% 46.7% 39.5%
- --------------------
Net Operating Income $16.26 $14.55 $19.31 $21.19 $14.98 $24.27
- --------------------
</TABLE>
- ----------
* Average sales include all mall shop tenants.
** CAM expenses include repairs & maintenance, utilities, and security.
*** Management fees & bad debt allowances have been deducted from
administrative costs. Management has been shown separately.
Source Urban Land Institute "Dollars & Cents" (1995); International Council of
Shopping Centers "The Score" (1996).
Because the data are means/medians, detailed amounts do not add to totals).
================================================================================
<PAGE>
<TABLE>
<CAPTION>
=================================================================================================================================
SENSITIVITY ANALYSIS
Dover Mall (Dover, Delaware) 1 2 3 4 5 6 7
Cushman & Wakefield, Inc 0 1 2 3 4 5 6
- - - - - - -
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
Effective Gross Income: $7,343,051 $8,155,848 $8,740,437 $9,155,424 $9,294,277 $9,449,607 $9,695,718
Operating Expenses; $2,489,702 $2,588,367 $2,685,576 $2,778,340 $2,868,880 $2,962,603 $3,061,750
Net Operating Income: $4,853,349 $5,567,481 $6,054,861 $6,377,084 $6,425,397 $6,487,004 $6,633,968
Net Cash Flow: $3,999,783 $4,904,638 $5,551,455 $6,071,064 $6,129,461 $6,120,690 $6,274,625
Property Value: $54,600,000
Net Sales Price: $58,383,314 $63,494,218 $66,873,205 $67,379,839 $68,025,880 $69,567,016 $70,266,328
Net Cash Flow: $3,999,783 $4,904,638 $5,551,455 $6,071,064 $6,129,461 $6,120,690 $6,274,625
- NOI Return: 8.89% 10.20% 11.09% 11.68% 11.77% 11.88% 12.15%
- Cash-On-Cash Return: 7.33% 8.98% 10.17% 11.12% 11.23% 11.21% 11.49%
Discounted Income Stream
Discounted Sales Price: $52,011,861 $50,391,987 $47,281,701 $42,440,898 $38,171,781 $34,776,452 $31,292,684
Discounted Cash Flow: $3,563,281 $3,892,551 $3,925,073 $3,824,013 $3,439,462 $3,059,724 $2,794,366
Net Present value: $55,575,142 $57,847,818 $58,662,606 $57,645,817 $56,816,161 $56,480,557 $55,791,155
<CAPTION>
==========================================================================================
SENSITIVITY ANALYSIS 8 9 10 11
Dover Mall (Dover, Delaware) 7 8 9 10
Cushman & Wakefield, lnc - - - --
==========================================================================================
<S> <C> <C> <C> <C>
Effective Gross Income: $9,862,227 $10,048,702 $10,322,347 $10,587,371
Operating Expenses; $3,181,572 $3,263,932 $3,372,631 $3,484,713
Net Operating Income: $8,700,655 $6,784,770 $6,949,712 $7,102,658
Net Cash Flow: $6,120,614 $6,223,961 $6,351,274
Property Value: $74,481,927
Net Sales Price: $71,148,399 $72,878,103 $74,481,927
Net Cash Flow: $6,120,614 $6,223,961 $6,351,274
- NOI Return: 12.27% 12.43% 12.73%
- Cash-On-Cash Return: 11.21% 11.40% 11.63%
Discounted Income Stream
Discounted Sales Price: $28,227,625 $25,758,461 $23,452,408
Discounted Cash Flow: $2,428,310 $2,199,833 $1,999,850
Net Present value: $55,154,406 $54,885,075 $54,578,870
</TABLE>
================================================================================
ASSUMPTIONS & CONCLUSIONS
- --------------------------------------------------------------------------------
Value Range: Low High Conclusion
Discount Rate: 12.50% 11.75% 12.25%
Terminal Cap Rate: 9.75% 9.00% 9.25%
================================================================================
Value Range/Conclusion: $52,549,234 $57,022,634 $54,600,000
- --------------------------------------------------------------------------------
- Going-in Cap Rate: 9.24% 8.51% 8.89%
- --------------------------------------------------------------------------------
- Price/sf Owned GLA: $125.71 $136.41 $130.82
- --------------------------------------------------------------------------------
- Price/sf Mall Shop GLA: $226.47 $245.75 $235.31
================================================================================
================================================================================
SALE-YIELD MATRIX
- --------------------------------------------------------------------------------
Net Reversion Terminal Discount Rate (IRR)
Cost of Sale: Capitalization --------------------------------------------------
3.00% Rate 11.75% 12.00% 12.25% 12.50%
================================================================================
$76,550,870 9.00% $57,022,634 $56,116,851 $55,230,326 $54,362,584
- --------------------------------------------------------------------------------
$74,481,927 9.25% $56,341,436 $55,450,707 $54,578,870 $53,725,461
- --------------------------------------------------------------------------------
$72,521,876 9.60% $55,696,091 $54,819,623 $53,961,702 $53,121,871
- --------------------------------------------------------------------------------
$70,662,341 9.75% $55,083,841 $54,220,903 $53,376,183 $52,549,234
================================================================================
[GRAPHIC OMITTED]
[Bar Chart of NOI vs. Cash Flow]
[GRAPHIC OMITTED]
[Bar Chart of NPV vs. Sales Price By Year]
================================================================================
<PAGE>
================================================================================
ANNUAL CASH FLOW REPORT
Dover Commons (Dover, Delaware)
Cushman & Wakefield, Inc.
<TABLE>
<CAPTION>
========================================================================================================
1997 1998 1999 2000 2001 2002
---- ---- ---- ---- ---- ----
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
<S> <C> <C> <C> <C> <C> <C>
- ------------------
OPERATING INCOME
- ------------------
MINIMUM RENT
All In-Line Tenants $486,929 $574,629 $547,476 $613,199 $634,519 $614,228
Free Rent ($72,105) ($38,978) ($67,252) ($66,210) ($3,267) ($55,720)
--------- --------- --------- --------- --------- ---------
Subtotal: $414,824 $535,651 $480,224 $548,939 $831,252 $558,508
RECOVERIES
CAM-In-Line Tenants $54,213 $61,689 $59,541 $66,189 $67,416 $67,278
TAX-In-Line Tenants $23,434 $28,596 $29,119 $37,411 $38,106 $38,027
--------- --------- --------- --------- --------- ---------
Subtotal: $77,647 $90,285 $88,660 $103,800 $105,522 $105,305
Gross Rental Income: $492,471 $625,936 $568,884 $650,589 $736,774 $663,813
Credit Loss ($14,407) ($26,029) ($28,444) ($32,530) ($36,839) ($33,191)
--------- --------- --------- --------- --------- ---------
Total Income: $478,064 $599,907 $540,440 $618,059 $699,935 $630,622
- ------------------
OPERATING EXPENSES
- ------------------
EXPENSES
Common Area Maint, $50,729 $52,505 $54,342 $56,244 $58,213 $60,250
Real Estate Taxes $32,974 $34,128 $35,323 $36,559 $37,838 $39,163
Utility Expense $7,102 $7,351 $7,608 $7,874 $8,150 $8,435
Water & Sewer $1,015 $1,050 $1,087 $1,125 $1,164 $1,205
General & Administrative $2,841 $2,940 $3,043 $3,150 $3,260 $3,374
Miscellaneous $1,015 $1,050 $1,087 $1,125 $1,164 $1,205
Management Fee $20,741 $26,783 $24,011 $27,349 $31,563 $27,925
--------- --------- --------- --------- --------- ---------
Total Expenses: $116,417 $125,807 $126,501 $133,426 $141,352 $141,557
NET OPERATING INCOME $361,647 $474,100 $413,939 $484,633 $558,583 $489,065
Alterations $141,900 $12,820 $55,378 $9,388 $0 $48,933
Commissions $62,701 $11,823 $48,375 $7,980 $0 $44,259
Reserves for Replacement $10,395 $10,759 $11,136 $11,525 $11,929 $12,346
--------- --------- --------- --------- --------- ---------
Subtotal: $214,996 $35,402 $114,889 $28,893 $11,929 $105,538
NET CASH FLOW $146,651 $438,698 $299,050 $455,740 $546,654 $383,527
<CAPTION>
========================================================================================================
2003 2004 2005 2006 2007
---- ---- ---- ---- ----
Year 7 Year 8 Year 9 Year 10 Year 11
<S> <C> <C> <C> <C> <C>
- ------------------
OPERATING INCOME
- ------------------
MINIMUM RENT
All In-Line Tenants $654,871 $644,087 $676,009 $717,238 $702,032
Free Rent ($63,998) ($53,379) ($94,352) ($7,353) ($38,779)
--------- --------- --------- --------- ---------
Subtotal: $590,873 $590,708 $581,657 $709,885 $663,253
RECOVERIES
CAM-In-Line Tenants $74,443 $72,659 $77,189 $79,981 $80,174
TAX-In-Line Tenants $42,077 $41,067 $43,628 $45,209 $45,317
--------- --------- --------- --------- ---------
Subtotal: $116,520 $113,720 $120,817 $125,190 $125,491
Gross Rental Income: $707,393 $704,434 $702,474 $635,075 $788,744
Credit Loss ($35,370) ($35,222) ($35,124) ($41,754) ($39,437)
--------- --------- --------- --------- ---------
Total Income: $672,023 $669,212 $667,350 $793,321 $749,307
- ------------------
OPERATING EXPENSES
- ------------------
EXPENSES
Common Area Maint, $62,359 $64,542 $66,801 $69,139 $71,558
Real Estate Taxes $40,533 $41,952 $43,420 $44,940 $46,513
Utility Expense $8,730 $9,036 $9,352 $9,679 $10,018
Water & Sewer $1,247 $1,291 $1,336 $1,383 $1,431
General & Administrative $3,492 $3,614 $3,741 $3,872 $4,007
Miscellaneous $1,247 $1,291 $1,336 $1,383 $1,431
Management Fee $29,544 $29,535 $29,083 $35,494 $33,163
--------- --------- --------- --------- ---------
Total Expenses: $147,152 $151,261 $155,069 $165,890 $163,121
NET OPERATING INCOME $524,871 $517,951 $512,281 $627,431 $581,136
Alterations $18,860 $39,826 $37,096 $0 $0
Commissions $16,709 $34,141 $30,933 $0 $43,065
Reserves for Replacement $12,778 $13,226 $13,688 $14,168 $14,663
--------- --------- --------- --------- ---------
Subtotal: $48,347 $87,193 $81,717 $14,168 $57,728
NET CASH FLOW $476,524 $430,758 $430,564 $613,263 $523,458
========================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
==========================================================================================================
SENSITIVITY ANALYSIS
Dover Commons (Dover, Delaw 1 2 3 4 5 6
Cushman & Wakefield, Inc 0 1 2 3 4 5
- - - - - -
==========================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Effective Gross Income: $476,064 $599,907 $540,440 $618,059 $699,935 $630,622
Operating Expenses: $116,417 $125,807 $126,501 $133,426 $141,352 $141,557
Net Operating Income: $361,647 $474,100 $413,939 $484,633 $558,583 $489,065
Net Cash Flow $146,651 $438,698 $299,050 $455,740 $546,654 $383,527
Property value: $3,900,000
Net Sales Price $4,379,781 $3,824,008 $4,477,086 $5,160,243 $4,518,029 $4,848,808
Net Cash Flow, $146,651 $438,698 $299,050 $455,740 $546,654 $383,527
- NOI Return 9.27% 12.16% 10.61% 12.43% 14.32% 12.54%
- Cash-On-Cash Return: 3.76% 11.25% 7.67% 11.69% 14.02% 9.83%
Discounted Income Stream
Discounted Sales Price: $3,901,809 $3,034,912 $3,165,457 $3,250,310 $2,535,229 $2,423,912
Discounted Cash Flow: $130,647 $348,171 $211,439 $287,059 $306,747 $191,725
Net Present Value: $4,032,456 $3,513,730 $3,855,714 $4,227,626 $3,819,293 $3,899,701
<CAPTION>
==========================================================================================================
SENSITIVITY ANALYSIS
Dover Commons (Dover, Delaw 7 8 9 10 11
Cushman & Wakefield, Inc 6 7 8 9 10
- - - - --
---------- ---------- ---------- ---------- --------
==========================================================================================================
<S> <C> <C> <C> <C> <C>
Effective Gross Income: $672,023 $669,212 $667,350 $793,321 $749,301
Operating Expenses: $147,152 $151,261 $155,069 $165,890 $168,121
Net Operating Income: $524,871 $517,951 $512,281 $627,431 $581,186
Net Cash Flow $476,524 $430,758 $430,564 $613,263
Property value: $6,389,062
Net Sales Price $4,784,881 $4,732,501 $5,796,267 $5,369,052
Net Cash Flow, $476,524 $430,758 $430,564 $613,263
- NOI Return 13.46% 13.28% 13.14% 16.09%
- Cash-On-Cash Return: 12.22% 11.05% 11.04% 15.72%
Discounted Income Stream
Discounted Sales Price: $2,130,918 $1,877,586 $2,048,666 $1,690,574
Discounted Cash Flow: $212,217 $170,900 $152,181 $193,100
Net Present Value: $3,818,923 $3,736,492 $4,059,753 $3,894,761
</TABLE>
================================================================================
ASSUMPTIONS & CONCLUSIONS
- --------------------------------------------------------------------------------
Value Range: Low High Conclusion
Discount Rate: 12.50% 11.75% 12.25%
Terminal Cap Rate: 11.00% 10.25% 10.50%
================================================================================
Value Range/Conclusion: $3,757,132 $4,066,923 $3,900,000
- --------------------------------------------------------------------------------
- Going-In Cap Rate: 9.63% 8.89% 9.27%
- --------------------------------------------------------------------------------
- Price/sf Owned GLA: $8.99 $9.73 $9.33
- --------------------------------------------------------------------------------
- Price/sf Mall Shop GLA: $16.19 $17.53 $18.81
================================================================================
================================================================================
SALE-YIELD MATRIX
- --------------------------------------------------------------------------------
Net Reversion Terminal Discount Rate (IRR)
Cost of Sale: Capitalization --------------------------------------------------
3.00% Rate 11.75% 12.00% 12.25% 12.50%
================================================================================
$5,500,004 10.25% $4,066,923 $4,000,753 $3,935,994 $3,872,612
- --------------------------------------------------------------------------------
$5,369,052 10.50% $4,023,807 $3,958,590 $3,894,761 $3,832,286
- --------------------------------------------------------------------------------
$5,244,190 10.75% $3,982,696 $3,918,387 $3,855,445 $3,793,835
- --------------------------------------------------------------------------------
$5,125,004 11.00% $3,943,454 $3,880,013 $3,817,916 $3,757,132
================================================================================
[GRAPHIC OMITTED]
[Bar Chart of NOI vs. Cash Flow]
[GRAPHIC OMITTED]
[Bar Chart of NPV vs. Sales Price By Year]
================================================================================
<PAGE>
One Northwest Center
13831 Northwest Freeway
Houston, Texas
Recent Lease Analysis Summary
<TABLE>
<CAPTION>
===================================================================================================
Average Average Average
Total Effective Revenue Number of Tenant Tenant
Area Revenue Per SF Tenants Size Finish(1)
===================================================================================================
<C> <C> <C> <C> <C> <C> <C>
1996 Leases 13,294 $146,846 $11.05 5 2,659 $3.75
1995 Leases 28,023 $310,533 $11.08 13 2,156 $12.25
1994 Leases 29,131 $335,542 $11.62 5 5,826 $22.00
----------------------------------------------------------------------------
Overall Total: 70,448 $792,921 $11.26 23 3,083 $10.80
===================================================================================================
1) Includes only those tenants for which information was available.
===================================================================================================
</TABLE>
<PAGE>
One Northwest Center
13831 Northwest Freeway
Houston, Texas
Lease-up Analysis
Net Rentable Area 150,465 SF(1)
Leased/Occupied Area as of August 1996 128,120 SF
<TABLE>
<CAPTION>
Year 1996 1997 1998
<S> <C> <C> <C>
Square Footage to be Leased 22,345 19,660 4,198
Square Footage Leased 2,685 15,462 4,198
----- ------ -----
Remaining Area to be Leased 19,660 4,198 0
</TABLE>
<TABLE>
<CAPTION>
============================================================================================================================
Period Suite Area Suite Area Suite Area
============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
First Quarter 175 4,159 215 4,198
230 1,562
----- ------ -----
Quarter Totals 0 5,721 4,198
===== ====== =====
- ----------------------------------------------------------------------------------------------------------------------------
Second Quarter 499 6,680
----- ------ -----
Quarter Totals 0 6,680 0
===== ====== =====
- ----------------------------------------------------------------------------------------------------------------------------
Third Quarter 360 1,689
----- ------ -----
Quarter Totals 0 1,689 0
===== ====== =====
- ----------------------------------------------------------------------------------------------------------------------------
Fourth Quarter 660 2,685 120 1,372
----- ------ -----
Quarter Totals 2,685 1,372 0
===== ====== =====
============================================================================================================================
Annual Totals 2,685 15,462 4,198
</TABLE>
Assumptions:
(1) The Net Rentable Area is based on the
Square Footage Schedule provided by current
management. We have considered existing suite
configurations.
<PAGE>
One Northwest Center
13831 Northwest Freeway
Houston, Texas
Operating Income and Expense Analysis
<TABLE>
<CAPTION>
=========================================================================================================================
Actual Actual Actual
1993 1994 1995
-----------------------------------------------------------------------------
Actual Actual Actual
Amount Per SF Amount Per SF Amount Per SF
=========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Revenue From Operations
Rental Income $999,988 $6.65 $832,507 $5.53 $1,247,752 $8.29
Operating Expense Recovery $137,446 $0.91 $51,549 $0.34 $72,685 $0.48
Other Income $460 $0.00 $1,003 $0.01 $0 $0.00
---- ----- ------ ----- -- -----
Total Rent, Recoveries, and Other Income $1,137,894 $7.56 $885,059 $5.88 $1,320,437 $8.78
Vacancy and Collection Loss $0 $0.00 $0 $0.00 $0 $0.00
Effective Gross Income $1,137,894 $7.56 $885,059 $5.88 $1,320,437 $8.78
Variable Operating Expenses
Administrative $30,354 $0.20 $18,032 $0.12 $16,155 $0.11
Payroll $80,730 $0.54 $74,110 $0.49 $90,911 $0.60
Janitorial $105,979 $0.70 $77,541 $0.52 $86,846 $0.58
Building Services $6,625 $0.04 $13,939 $0.09 $24,233 $0.16
Repairs & Maintenance $116,504 $0.77 $80,642 $0.54 $114,977 $0.76
Security & Safety $74,463 $0.49 $56,676 $0.38 $78,953 $0.52
Utilities $261,355 $1.74 $224,965 $1.50 $215,788 $1.43
Advertising $6,038 $0.04 $5,917 $0.04 $12,988 $0.09
Management Fees $31,552 $0.21 $24,444 $0.16 $36,355 $0.24
------- ----- ------- ----- ------- -----
Total Variable Expenses $713,600 $4.74 $576,466 $3.83 $677,206 $4.50
Fixed Operating Expenses
Real Estate Taxes $144,103 $0.96 $118,554 $0.79 $125,568 $0.83
Insurance $0 $0.00 $25,850 $0.17 $21,888 $0.15
-- ----- ------- ----- ------- -----
Total Fixed Expenses $144,103 $0.96 $144,404 $0.96 $147,456 $0.98
Total Expenses $857,703 $5.70 $720,870 $4.79 $824,662 $5.48
Net Operating income $280,191 $1.86 $164,189 $1.09 $495,775 $3.29
=========================================================================================================================
<CAPTION>
===============================================================================================
Budget Cushman & Wakefield
1996 1996 Projection
---------------------------------------------------
Actual Annualized
Amount Per SF Amount Per SF
===============================================================================================
<S> <C> <C> <C> <C>
Revenue From Operations
Rental Income $1,477,863 $9.82 $1,506,202 $10.01
Operating Expense Recovery $50,071 $0.33 $37,615 $0.25
Other Income $25,603 $0.17 $0 $0.00
------- ----- -- -----
Total Rent, Recoveries, and Other Income $1,553,537 $10.32 $1,543,817 $10.26
Vacancy and Collection Loss $0 $0.00 ($30,876) ($0.21)
Effective Gross Income $1,553,537 $10.32 $1,512,941 $10.06
Variable Operating Expenses
Administrative $15,536 $0.10 $15,046 $0.10
Payroll $105,024 $0.70 $105,326 $0.70
Janitorial $98,610 $0.68 $88,299 $0.57
Building Services $26,710 $0.18 $27,084 $0.18
Repairs & Maintenance $110,790 $0.74 $112,848 $0.75
Security & Safety $80,475 $0.53 $79,747 $0.53
Utilities $229,700 $1.53 $225,698 $1.50
Advertising $7,570 $0.05 $7,524 $0.05
Management Fees $42,728 $0.28 $45,389 $0.30
------- ----- ------- -----
Total Variable Expenses $717,143 $4.77 $704,962 $4.69
Fixed Operating Expenses
Real Estate Taxes $112,008 $0.74 $110,110 $0.73
Insurance $19,536 $0.13 $19,560 $0.13
------- ----- ------- -----
Total Fixed Expenses $131,544 $0.87 $129,670 $0.86
Total Expenses $848,687 $5.64 $834,631 $5.55
Net Operating income $704,850 $4.68 $678,310 $4.51
===============================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
REGIONAL TRENDS - Westchester County, New York
Cushman & Wakefield, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
====================================================================================================================================
Population Estimate Projected CAGR CAGR CAGR
Statistics 1980 1990 1995 2000 1980-90 1990-95 1995-00
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
Westchester County 866,970 875,240 888,980 889,110 0.1% 0.3% 0.0%
- ------------------------------------------------------------------------------------------------------------------------------------
New York PMSA 18,844,240 19,470,450 19,725,410 19,827,660 0.3% 0.3% 0.1%
- ------------------------------------------------------------------------------------------------------------------------------------
State of New York 17,566,360 18,002,250 18,195,720 18,314,750 0.2% 0.2% 0.1%
- ------------------------------------------------------------------------------------------------------------------------------------
Mideast U.S. (000) 42,273,940 43,708,420 44,562,580 45,300,490 0.3% 0.4% 0.3%
- ------------------------------------------------------------------------------------------------------------------------------------
United States (000) 227,226 249,401 262,791 274,758 0.9% 1.1% 0.9%
====================================================================================================================================
Source: Woods & Poole Economics, Inc.
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
====================================================================================================================================
Household Estimate Projected CAGR CAGR CAGR
Statistics 1980 1990 1995 2000 1980-90 1990-95 1995-00
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
Westchester County 309,450 320,190 323,900 324,230 0.3% 0.2% 0.0%
- ------------------------------------------------------------------------------------------------------------------------------------
New York PMSA 6,803,330 7,130,120 7,189,050 7,235,660 0.5% 0.2% 0.1%
- ------------------------------------------------------------------------------------------------------------------------------------
State of New York 6,377,390 6,644,080 6,684,660 6,730,850 0.4% 0.1% 0.1%
- ------------------------------------------------------------------------------------------------------------------------------------
Mideast US (000) 15,120,130 16,195,990 16,471,580 16,775,980 0.7% 0.3% 0.4%
- ------------------------------------------------------------------------------------------------------------------------------------
United States (000) 80,834 92,210 96,968 101,726 1.3% 1.0% 1.0%
====================================================================================================================================
Source: Woods & Poole Economics, Inc.
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
====================================================================================================================================
Per Capita Estimate Projected CAGR CAGR CAGR
Income 1980 1990 1995 2000 1980-90 1990-95 1995-00
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
Westchester County $15,247 $32,390 $37,850 $46,914 7.8% 3.2% 4.4%
- ------------------------------------------------------------------------------------------------------------------------------------
New York PMSA $11,982 $25,230 $29,651 $37,016 7.7% 3.3% 4.5%
- ------------------------------------------------------------------------------------------------------------------------------------
State of New York $10,906 $22,321 $26,189 $32,478 7.4% 3.2% 4.4%
- ------------------------------------------------------------------------------------------------------------------------------------
Mideast U.S. (000) $10,768 $21,682 $25,825 $32,240 7.2% 3.6% 4.5%
- ------------------------------------------------------------------------------------------------------------------------------------
United States (000) $9,942 $18,666 $22,487 $28,133 6.5% 3.8% 4.6%
====================================================================================================================================
Source: Woods & Poole Economics, Inc.
====================================================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
Employment Statistics Estimate Projected CAGR CAGR CAGR
Westchester County 1980 1990 1995 2000 1980-90 1990-95 1995-00
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
Total Employment 442,380 504,470 476,680 471,930 1.3% -1.1% -0.2%
- ------------------------------------------------------------------------------------------------------------------------------------
Farm/Agr. Services 4,460 4,850 4,880 4,890 0.8% 0.1% 0.0%
- ------------------------------------------------------------------------------------------------------------------------------------
Total Non-Farm Emp. 437,920 499,620 471,800 467,040 1.3% -1.1% -0.2%
- ------------------------------------------------------------------------------------------------------------------------------------
Mining & Const. 20,210 28,730 23,040 23,030 3.6% -4.3% 0.0%
- ------------------------------------------------------------------------------------------------------------------------------------
Manufacturing 76,650 57,110 44,510 41,380 -2.9% -4.9% -1.4%
- ------------------------------------------------------------------------------------------------------------------------------------
T.C.P.U. 21,480 22,980 22,850 22,810 0.7% -0.1% 0.0%
- ------------------------------------------------------------------------------------------------------------------------------------
Whlse/Retail Trade 95,730 99,350 91,720 87,610 0.4% -1.6% -0.9%
- ------------------------------------------------------------------------------------------------------------------------------------
F.I.R.E. 37,390 52,820 47,880 49,110 3.5% -1.9% 0.5%
- ------------------------------------------------------------------------------------------------------------------------------------
Services 130,670 179,410 184,660 186,420 3.2% 0.6% 0.2%
- ------------------------------------------------------------------------------------------------------------------------------------
Government 55,790 59,220 57,140 56,680 0.6% -0.7% -0.2%
====================================================================================================================================
Source: Woods & Poole Economics, Inc.
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
====================================================================================================================================
Retail Sales CAGR CAGR CAGR
Trends 1985 1990 1993 1994 1985-94 1990-94 1993-94
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
City of White Plains ($000) $1,018,960 $1,156,531 $1,223,216 $1,011,257 -0.1% -3.3% -17.3%
- ------------------------------------------------------------------------------------------------------------------------------------
Westchester County ($000) $6,477,942 $8,042,013 $8,405,537 $8,457,444 3.0% 1.3% 10.6%
- ------------------------------------------------------------------------------------------------------------------------------------
New York MSA ($Mil) $41,390 $49,319 $49,589 $50,735 2.3% 0.7% 2.3%
- ------------------------------------------------------------------------------------------------------------------------------------
State of New York ($Mil) $95,807 $124,479 $127,516 $134,422 3.8% 1.9% 5.4%
- ------------------------------------------------------------------------------------------------------------------------------------
United States ($Mil) $1,395,243 $1,807,183 $2,079,201 $2,241,319 5.4% 5.5% 7.8%
====================================================================================================================================
Source: Sales & Marketing Management "Survey of Buying Power"
====================================================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
==============================================================================================================
GROWTH PROJECTIONS - Westchester County, New York
Cushman & Wakefield, Inc.
- --------------------------------------------------------------------------------------------------------------
==============================================================================================================
Population Estimate Projected CAGR CAGR
Statistics 1990 1995 2000 1990-95 1995-00
==============================================================================================================
<S> <C> <C> <C> <C> <C>
Woods & Poole Economics 875,240 888,980 889,110 0.3% 0.0%
- --------------------------------------------------------------------------------------------------------------
Department of Planning 874,866 888,000 891,000 0.3% 0.1%
- --------------------------------------------------------------------------------------------------------------
Demographics USA 875,152 890,287 901,100 0.3% 0.2%
- --------------------------------------------------------------------------------------------------------------
CACI Marketing Systems 874,866 891,878 908,079 0.4% 0.4%
==============================================================================================================
Consensus Forecast: 0.2%
==============================================================================================================
</TABLE>
<TABLE>
<CAPTION>
==============================================================================================================
Household Estimate Projected CAGR CAGR
Statistics 1990 1995 2000 1990-95 1995-00
==============================================================================================================
<S> <C> <C> <C> <C> <C>
Woods & Poole Economics 320,190 323,900 324,230 0.2% 0.0%
- --------------------------------------------------------------------------------------------------------------
Department of Planning 331,389 336,364 342,692 0.3% 0.4%
- --------------------------------------------------------------------------------------------------------------
Demographics USA 0 323,573 328,500 #DIV/O! 0.3%
- --------------------------------------------------------------------------------------------------------------
CACI Marketing Systems 320,030 326,788 332,992 0.4% 0.4%
==============================================================================================================
Consensus Forecast: 0.3%
==============================================================================================================
</TABLE>
<TABLE>
<CAPTION>
==============================================================================================================
Per Capita Estimate Projected CAGR CAGR
Income 1990 1995 2000 1990-95 1995-00
==============================================================================================================
<S> <C> <C> <C> <C> <C>
Woods & Poole Economics $32,390 $37,850 $46,914 3.2% 4.4%
==============================================================================================================
Consensus Forecast: 4.4%
==============================================================================================================
</TABLE>
<TABLE>
<CAPTION>
==============================================================================================================
Average Household Estimate Projected CAGR CAGR
Effective Buying Income 1990 1995 2000 1990-95 1995-00
==============================================================================================================
<S> <C> <C> <C> <C> <C>
Demographics USA $0 $79,130 $93,492 #DIV/0! 3.4%
==============================================================================================================
Consensus Forecast: 3.4%
==============================================================================================================
</TABLE>
<TABLE>
<CAPTION>
==============================================================================================================
Retail Sales Estimate Projected CAGR CAGR
Westchester County 1990 1995 2000 1990-95 1995-00
==============================================================================================================
<S> <C> <C> <C> <C> <C>
Demographics USA $8,402,013 $8,457,444 $9,365,793 0.1% 2.1%
==============================================================================================================
Consensus Forecast: 2.1%
==============================================================================================================
</TABLE>
<TABLE>
<CAPTION>
==============================================================================================================
Non-Agricultural Estimate Projected CAGR CAGR
Employment Growth 1990 1995 2000 1990-95 1995-00
==============================================================================================================
<S> <C> <C> <C> <C> <C>
Woods & Poole Economics 499,620 471,800 467,040 -1.1% -0.2%
==============================================================================================================
Consensus Forecast: -0.2%
==============================================================================================================
==============================================================================================================
</TABLE>
<PAGE>
[GRAPHIC OMITTED]
[Area Map]
CITY OF
WHITE PLAINS
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
DEMOGRAPHIC STATISTICS
Galleria at White Plains (New York)
Cushman & Wakefield, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Primary Secondary Effective Westchester New York State of
Trade Area Trade Area Trade Area County PMSA New York
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
POPULATION STATISTICS
1980 381,329 307,712 691,774 866,599 8,274,963 17,558,076
1990 375,292 306,153 683,960 874,866 8,546,846 17,990,456
1996 383,221 312,445 698,228 898,586 8,651,668 18,293,436
2001 390,295 318,529 711,397 915,143 8,764,405 18,493,734
Compound Annual Change
1980 - 1990 -0.16% -0.05% -0.11% 0.09% 0.32% 0.24%
1990 - 1996 0.35% 0.34% 0.34% 0.45% 0.20% 0.28%
1996 - 2001 0.37% 0.39% 0.37% 0.37% 0.26% 0.22%
- ------------------------------------------------------------------------------------------------------------------------------------
HOUSEHOLD STATISTICS
1980 138,623 111,895 251,545 307,450 3,198,254 6,340,431
1990 138,748 114,153 253,905 320,030 3,252,399 6,639,322
1996 145,604 120,269 266,922 338,365 3,353,426 6,885,111
2001 150,725 124,833 276,641 351,924 3,438,141 7,041,230
Compound Annual Change
1980 - 1990 0.01% 0.20% 0.09% 0.40% 0.17% 0.46%
1990 - 1996 0.81% 0.87% 0.84% 0.93% 0.51% 0.61%
1996 - 2001 0.69% 0.75% 0.72% 0.79% 0.50% 0.45%
- ------------------------------------------------------------------------------------------------------------------------------------
AVERAGE HOUSEHOLD INCOME
1980 $29,548 $26,517 $28,210 $29,619 $19,624 $20,527
1990 $72,322 $58,145 $65,917 $69,264 $45,159 $44,121
1996 $90,118 $80,457 $85,779 $88,846 $59,659 $57,348
2001 $126,136 $115,359 $121,286 $124,652 $85,608 $79,593
Compound Annual Change
1980 - 1990 9.36% 8.17% 8.86% 8.87% 8.69% 7.95%
1990 - 1996 3.73% 5.56% 4.49% 4.24% 4.75% 4.47%
1996 - 2001 6.96% 7.47% 7.17% 7.01% 7.49% 6.78%
- ------------------------------------------------------------------------------------------------------------------------------------
PER CAPITA INCOME STATISTICS
1980 $10,742 $9,642 $10,258 $10,603 $7,672 $7,498
1990 $26,885 $22,101 $24,742 $25,584 $17,396 $16,501
1996 $35,057 $31,949 $33,678 $34,413 $23,634 $22,082
2001 $49,853 $46,590 $48,409 $49,270 $34,398 $31,036
Compound Annual Change
1980 - 1990 9.61% 8.65% 9.20% 9.21% 8.53% 8.21%
1990 - 1996 4.52% 6.33% 5.27% 5.07% 5.24% 4.98%
1996 - 2001 7.30% 7.84% 7.53% 7.44% 7.80% 7.04%
- ------------------------------------------------------------------------------------------------------------------------------------
SOURCE: Equifax National Decision Systems
====================================================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
===================================================================================================================================
ANNUAL CASH FLOW REPORT
Galleria at White Plains (White Plains, NY)
Cushman & Wakefield, Inc. 1997 1998 1999 2000 2001 2002 2003
===================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATING INCOME
MINIMUM RENT
Mall Shop Tenants $8,002,308 $9,072,560 $9,694,412 $10,130,846 $10,174,260 $10,443,418 $10,556,344
Food Court Tenants $705,807 $772,793 $786,819 $814,881 $875,950 $970,146 $1,008,129
Kiosk Tenants $347,271 $355,000 $366,875 $354,254 $380,932 $383,205 $397,430
Anchor Tenants $70,000 $70,000 $70,000 $70,000 $70,000 $70,000 $70,000
-------------- ------- ------- ------- ------- ------- ------- -------
Subtotal: $9,125,386 $10,270,353 $10,918,106 $11,369,981 $11,501,142 $11,866,769 $12,031,903
RECOVERIES
CAM-Mall Shops $3,338,600 $3,619,729 $3,594,247 $3,661,568 $3,728,592 $3,904,222 $4,005,158
CAM-Anchor Tenants $229,433 $224,581 $352,442 $417,030 $432,453 $461,458 $475,817
TAX-Mall Shops $2,332,987 $2,581,200 $2,749,027 $2,922,281 $3,000,863 $3,163,537 $3,265,447
UTL-Utility Income $1,311,929 $1,411,289 $1,436,961 $1,474,701 $1,464,643 $1,492,510 $1,491,490
Fct-Food Court $328,741 $381,575 $382,148 $402,102 $418,126 $464,027 $478,556
-------------- -------- -------- -------- -------- -------- -------- --------
Subtotal: $7,541,690 $8,218,374 $8,514,825 $8,877,682 $9,044,667 $9,485,754 $9,716,468
Overage Rent $113,699 $104,894 $101,230 $105,593 $74,628 $40,243 $71,686
Sales Volume (000) $87,542 $101,501 $110,721 $119,232 $122,601 $128,900 $132,869
Gross Rental Income: $16,780,775 $18,593,621 $19,534,161 $20,353,256 $20,620,437 $21,392,766 $21,820,057
-------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Temporary Income $232,875 $239,861 $247,057 $254,469 $262,103 $269,966 $278,065
Miscellaneous Income $70,875 $73,001 $75,191 $77,447 $79,770 $82,164 $84,628
Vacancy/Credit Loss ($200,860) ($353,335) ($566,242) ($791,796) ($921,364) ($955,266) ($974,498)
------------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------
Total Income: $16,883,665 $18,553,148 $19,290,167 $19,893,376 $20,040,946 $20,789,630 $21,208,252
OPERATING EXPENSES
EXPENSES
Common Area Maint. $3,069,115 $3,176,533 $3,287,712 $3,402,782 $3,521,879 $3,645,145 $3,772,725
Real Estate Taxes $2,738,800 $2,891,326 $3,023,501 $3,144,441 $3,270,218 $3,401,027 $3,537,068
Utility Expense $1,452,000 $1,481,040 $1,510,661 $1,540,874 $1,571,691 $1,603,125 $1,635,188
Water & Sewer $80,667 $82,280 $83,926 $85,604 $87,316 $89,063 $90,844
Food Court Expense $344,958 $357,032 $369,528 $382,461 $395,848 $409,702 $424,042
General & Administrative $263,792 $273,024 $282,580 $292,471 $302,707 $313,302 $324,267
Marketing Expense $81,167 $84,008 $86,948 $89,991 $93,141 $96,401 $99,775
Miscellaneous $10,146 $10,501 $10,868 $11,249 $11,643 $12,050 $12,472
Management Fee $277,173 $311,258 $330,580 $344,267 $347,273 $357,211 $363,107
-------------- -------- -------- -------- -------- -------- -------- --------
Total Expenses: $8,317,818 $8,667,002 $8,986,304 $9,294,140 $9,601,716 $9,927,026 $10,259,488
NET OPERATING INCOME $8,565,847 $9,886,146 $10,303,863 $10,599,236 $10,439,230 $10,862,604 $10,948,764
Replacement Reserve $50,000 $51,750 $53,561 $55,436 $57,376 $59,384 $61,463
Capital Items $256,000 $200,000 $0 $0 $0 $0 $0
Commissions $126,403 $115,020 $103,182 $36,254 $52,739 $52,529 $54,992
Alterations $346,427 $253,172 $243,119 $75,904 $83,845 $106,713 $93,330
----------- -------- -------- -------- ------- ------- -------- -------
Subtotal: $778,830 $619,942 $399,862 $167,594 $193,960 $218,626 $209,785
NET CASH FlOW $7,787,017 $9,266,204 $9,904,001 $10,431,642 $10,245,270 $10,643,978 $10,738,979
===================================================================================================================================
<CAPTION>
==============================================================================================================
ANNUAL CASH FLOW REPORT -------------------
Galleria at White Plains (White Plains, NY) CAGR CAGR
Cushman & Wakefield, Inc. 2004 2005 2006 2007 1997-06 1999-06
==============================================================================================================
<S> <C> <C> <C> <C> <C> <C>
OPERATING INCOME
MINIMUM RENT
Mall Shop Tenants $10,780,024 $10,711,974 $10,844,678 $11,340,942 3.4% 1.6%
Food Court Tenants $1,040,070 $1,063,555 $958,295 $1,049,950 3.5% 2.9%
Kiosk Tenants $422,818 $410,603 $439,078 $455,105 2.6% 2.6%
Anchor Tenants $70,000 $70,000 $70,000 $70,000 0.0% 0.0%
-------------- ------- ------- ------- ------- ---- ----
Subtotal: $12,312,912 $12,256,132 $12,312,051 $12,915,997 3.4% 1.7%
RECOVERIES
CAM-Mall Shops $4,191,475 $4,260,367 $4,470,561 $4,598,720 3.3% 3.2%
CAM-Anchor Tenants $489,913 $501,961 $494,057 $539,546 8.9% 4.9%
TAX-Mall Shops $3,429,502 $3,503,980 $3,675,433 $3,828,972 5.2% 4.2%
UTL-Utility Income $1,513,968 $1,497,803 $1,513,701 $1,521,144 1.6% 0.7%
Fct-Food Court $497,210 $521,050 $514,136 $576,855 5.1% 4.3%
-------------- -------- -------- -------- -------- ---- ----
Subtotal: $10,122,068 $10,285,161 $10,667,888 $11,065,237 3.9% 3.3%
Overage Rent $67,235 $68,093 $87,180 $115,333 -2.9% -2.1%
Sales Volume (000) $138,517 $141,392 $148,046 $151,913 6.0% 4.2%
Gross Rental Income: $22,502,215 $22,609,386 $23,067,119 $24,096,567 3.6% 2.4%
-------------------- ----------- ----------- ----------- ----------- ---- ----
Temporary Income $286,407 $294,999 $303,849 $312,964 3.0% 3.0%
Miscellaneous Income $87,167 $89,782 $92,476 $95,250 3.0% 3.0%
Vacancy/Credit Loss ($1,005,195) ($1,010,019) ($1,030,617) ($1,076,945) 19.9% 8.9%
------------------- ----------- ------------ ------------ ------------ ----- ----
Total Income: $21,870,594 $21,984,148 $22,432,827 $23,427,836 3.2% 2.2%
OPERATING EXPENSES
EXPENSES
Common Area Maint. $3,904,770 $4,041,437 $4,182,887 $4,329,288 3.5% 3.5%
Real Estate Taxes $3,678,551 $3,825,693 $3,978,720 $4,137,869 4.2% 4.0%
Utility Expense $1,667,892 $1,701,249 $1,735,274 $1,769,980 2.0% 2.0%
Water & Sewer $92,661 $94,514 $96,404 $98,332 2.0% 2.0%
Food Court Expense $438,883 $454,244 $470,143 $486,598 3.5% 3.5%
General & Administrative $335,617 $347,363 $359,521 $372,104 3.5% 3.5%
Marketing Expense $103,267 $106,881 $110,622 $114,494 3.5% 3.5%
Miscellaneous $12,908 $13,360 $13,828 $14,312 3.5% 3.5%
Management Fee $371,404 $369,726 $371,977 $390,939 3.3% 1.7%
-------------- -------- -------- -------- -------- ---- ----
Total Expenses: $10,605,953 $10,954,467 $11,319,376 $11,713,916 3.5% 3.4%
NET OPERATING INCOME $11,264,641 $11,029,681 $11,113,451 $11,713,920 2.9% 1.1%
Replacement Reserve $63,614 $65,841 $68,145 $70,530 3.5% 3.5%
Capital Items $0 $0 $0 $0 -100.0% #DIV/0!
Commissions $77,498 $81,535 $101,121 $203,589 -2.4% -0.3%
Alterations $126,709 $138,125 $189,387 $355,142 -6.5% -3.5%
----------- -------- -------- -------- -------- ---- -----
Subtotal: $267,821 $285,501 $338,653 $629,261 -8.3% -1.5%
NET CASH FlOW $10,996,820 $10,744,100 $10,754,798 3.7% 1.2%
-------------------
==============================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
RECENT LEASING ACTIVITY - Mall Shop Tenants By Size
Galleria at White Plains (White Plains, New York)
Cushman & Wakefield, Inc.
====================================================================================================================================
Lease Initial Initial Final Final % Change
Tenant Category Term Area Annual Rent Annual Rent/ In Rent
(By Size/Area) (Yrs) (SqFt) Rent Sq/Ft Rent Sq/Ft Over Term
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
1. Tenants < 750 sf
- -------------------
Things Rememb. (9/96) 10.0 682 $40,920 $60.00 $40,920 $60.00 0.0%
My Favorite Muffin (12/95) 7.0 750 $46,000 $61.33 $58,000 $77.33 26.1%
Auntie Anne's (5/94) 10.0 596 $42,000 $70.47 $48,000 $80.54 14.3%
Game Stop (4/93) 10.0 537 $36,000 $67.04 $46,000 $85.66 27.8%
---------------- ---- --- ------- ------ ------- ------ -----
Subtotal: 4 9.3 2,565 $164,920 $64.30 $192,920 $75.21 17.0%
- ------------------------------------------------------------------------------------------------------------------------------------
2. Tenants 751-1200 sf
- ----------------------
Sweet Factory (6/96) 10.0 960 $43,200 $45.00 $52,800 $55.00 22.2%
Nails & More (2/96) 10.0 993 $30,000 $30.21 $38,000 $38.27 26.7%
Pilde's Optical (2/96) 10.0 884 $55,000 $62.22 $55,000 $62.22 0.0%
Gymboree (5/95) 5.0 979 $51,000 $52.09 $51,000 $52.09 0.0%
Major Jewelers (9/94) 10.0 1,000 $70,000 $70.00 $75,000 $75.00 7.1%
Tailor's Touch (4/93) 70.0 1,167 $42,012 $36.00 $46,680 $40.00 11.1%
--------------------- ---- ----- ------- ------ ------- ------ -----
Subtotal: 6 8.7 5,983 $291,212 $48.67 $318,480 $53.23 9.4%
- ------------------------------------------------------------------------------------------------------------------------------------
3. Tenants 1201-2000 sf
- -----------------------
Candie's (9/96) 10.0 1,256 $37,950 $30.00 $60,720 $48.00 60.0%
Sbarro (9/96) 10.0 1,747 $60,500 $34.63 $69,500 $39.78 14.9%
Tru Stride (2/96) 10.0 1,449 $52,164 $36.00 $57,960 $40.00 11.1%
Spencer Gifts (9/94) 10.0 1,757 $66,766 $38.00 $73,794 $42.00 10.5%
Athlete's Foot (2/94) 8.0 1,451 $120,000 $82.70 $125,000 $86.15 4.2%
--------------------- --- ----- -------- ------ -------- ------ ----
Subtotal: 5 9.6 7,669 $337,380 $43.99 $386,974 $50.46 14.7%
- ------------------------------------------------------------------------------------------------------------------------------------
4. Tenants 2001-3500 sf
- -----------------------
Thom McAn (2/96) 10.0 3,011 $96,352 $32.00 $108,396 $36.00 12.5%
This End Up (2/96) 10.0 2,242 $85,196 $38.00 $94,164 $42.00 10.5%
Hair Design (2/96) 10.0 2,110 $120,000 $56.87 $120,000 $56.87 0.0%
Footlocker (12/94) 10.0 2,441 $120,000 $49.16 $130,000 $53.26 8.3%
Pacific Sunwear (5/94) 10.0 2,215 $88,600 $40.00 $99,675 $45.00 12.5%
Kay Bee Toys (6/93) 10.0 3,322 $119,592 $36.00 $132,880 $40.00 11.1%
Radio Shack (2/93) 10.0 3,157 $63,140 $20.00 $78,925 $25.00 25.0%
------------------ ---- ----- ------- ------ ------- ------ -----
Subtotal: 7 10.0 18,498 $692,880 $37.46 $764,040 $41.30 10.3%
- ------------------------------------------------------------------------------------------------------------------------------------
5. Tenants 3501-5000 sf
- -----------------------
Child Place (2/96) 10.0 4.577 $114,425 $25.00 $128,156 $28.00 12.0%
Limited too (6/95) 10.0 3,949 $126,368 $32.00 $142,164 $36.00 12.5%
American Eagle (12/94) 10.0 3,935 $125,920 $32.00 $141,660 $36.00 12.5%
Bombay Company (10/93) 10.0 4,052 $67,344 $16.62 $121,560 $30.00 80.5%
Disney Store (6/93) 10.0 3,765 $94,125 $25.00 $101,655 $27.00 8.0%
Aeropostale (5/93) 10.0 3,690 $114,390 $31.00 $140,220 $38.00 22.6%
------------------ ---- ----- -------- ------ -------- ------ -----
Subtotal: 6 10.0 23,968 $642,572 $26.81 $775,415 $32.35 20.7%
- ------------------------------------------------------------------------------------------------------------------------------------
6. Tenants 5001-15000 sf
- ------------------------
Structure (9/94) 10.0 5,709 $182,688 $32.00 $205,524 $36.00 12.5%
The Limited (7/93) 12.0 6,353 $222,355 $35.00 $235,061 $37.00 5.7%
Express & Bath (11/92) 12.0 9,258 $296,288 $32.00 $333,324 $36.00 12.5%
Victoria's Secret (11/92) 10.0 5,282 $184,870 $35.00 $195,434 $37.00 5.7%
------------------------- ---- ----- -------- ------ -------- ------ ----
Subtotal: 4 11.0 26,602 $886,201 $33.31 $969,343 $36.44 9.4%
- ------------------------------------------------------------------------------------------------------------------------------------
7. Tenants > 15000 sf
- ---------------------
Bunnie's (8/96) 10.0 26,100 $261,000 $10.00 $261,000 $10.00 0.0%
--------------- ---- ------ -------- ------ -------- ------ ----
Subtotal 1 10.0 26,100 $261,000 $10.00 $261,000 $10.00 0.0%
====================================================================================================================================
Survey Total: 33 9.8 111,385 $3,276,165 $29.41 $3,668,172 $32.93 12.0%
Excl. Group 7: 32 11.4 85,165 $3,015,165 $35.35 $3,407,172 $39.95 13.0%
====================================================================================================================================
</TABLE>
<PAGE>
================================================================================
AVERAGE MALL SHOP RENT CALCULATION
Galleria at White Plains (White Plains, New York)
Cushman & Wakefield, Inc.
- --------------------------------------------------------------------------------
Suite Size Applicable Pro-Rata Initial Weighted
Category Sq/Ft Share Market Rent Average
================================================================================
In-Line Mall Shops
Under - 750 SF 7,584 SF 2.88% $60.00 $1.73
751 - 1,200 SF 16,499 SF 6.27% $48.00 $3.01
1,201 - 2,000 SF 42,074 SF 16.00% $38.00 $6.08
2,001 - 3,500 SF 85,292 SF 32.43% $32.00 $10.38
3,501 - 5,000 SF 54,395 SF 20.68% $28.00 $5.79
5,001 - 15,000 SF 57,193 SF 21.74% $26.00 $5.65
Over - 15,000 SF 0 SF 0.00% $0.00 $0.00
================================================================================
Mall Shop average Rent: 263,037 SF 100.00% $32.64
================================================================================
===================================
Other Components Sq/ft
===================================
Tenants>15,000 Sq/ft 41,551 SF
Street Level Tenants 11,100 SF
Food Court Tenants 9,693 SF
Kiosk Tenants 1,432 SF
Non-Owned Anchors 555,915 SF
===================================
Property Total 882,728 SF
===================================
<PAGE>
<TABLE>
<CAPTION>
================================================================================================
FOOD COURT ANALYSIS - Rent & Sales Productivity
Galleria at white Plains (White Plains, New York)
Cushman & Wakefield, Inc.
- ------------------------------------------------------------------------------------------------
1996 1995
------------------ ----------------------- Rent-
Lease Demised Annual Rent Per Annual Sales Per Sales
Tenant Date Area Rent Sq/Ft Sales Sq/Ft Ratio
================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
Quik'N Natural Oct-82 331 $32,000 $96.68 $214,505 $648.05 14.92%
- ------------------------------------------------------------------------------------------------
Manchu Wok Dec-91 845 $58,000 $68.64 $676,083 $800.10 8.58%
- ------------------------------------------------------------------------------------------------
Arthur Teachers Mar-93 561 $60,000 $106.95 $425,241 $758.01 14.11%
- ------------------------------------------------------------------------------------------------
Genroku May-80 1,323 $44,982 $34.00 $289,759 $219.02 15.52%
- ------------------------------------------------------------------------------------------------
Bizzarre Pizza Oct-89 607 $54,630 $90.00 $283,996 $467.87 19.24%
- ------------------------------------------------------------------------------------------------
Acropolis Feb-96 519 $43,000 $82.85 $281,920 $543.20 15.25%
- ------------------------------------------------------------------------------------------------
Roy Rogers Oct-89 1,200 $111,800 $93.00 $773,156 $644.30 14.43%
- ------------------------------------------------------------------------------------------------
JB's Texas Grill Feb-96 472 $43,000 $91.10 $258,828 $548.36 16.61%
- ------------------------------------------------------------------------------------------------
Big Easy Cajun Nov-95 414 $48,000 $115.94 -- -- --
- ------------------------------------------------------------------------------------------------
Everything Yogurt Oct-89 455 $40,950 $90.00 $265,015 $582.45 15.45%
- ------------------------------------------------------------------------------------------------
Chowders Oct-86 405 $38,000 $93.83 $309,256 $763.60 12.29%
- ------------------------------------------------------------------------------------------------
Nathan's Famous Apr-89 968 $85,000 $87.81 $722,911 $746.81 11.76%
- ------------------------------------------------------------------------------------------------
McDonald's Nov-85 1,593 $63,720 $40.00 $2,160,710 $1,356.38 2.95%
================================================================================================
Total: 13 9,693 $722,882 -- $6,661,380 --
Average: 746 $55,606 $74.58 $555,115 $717.90 10.39%
================================================================================================
Note: Average sales calculated using only those stores reporting full year sales.
================================================================================================
</TABLE>
<PAGE>
================================================================================
-----------------------
LEASE-UP/ABSORPTION PROJECTIONS Applicable GM
Galleria at White Plains (White Plains, New York) Mall Shop GLA 326,813
Cushman & Wakefield, Inc. -----------------------
- --------------------------------------------------------------------------------
Suite Demised Projected Rent Per Projected
No. Description Area Annual Rent Sq/Ft Lease Date
================================================================================
222 Vacant In-Line 2,036 $65,152 $32.00 Oct-96
418 Vacant In-Line 2,896 $92,672 $32.00 Oct-96
368 Vacant In-Line 3,316 $106,112 $32.00 Oct-96
453 Vacant In-Line 2,632 $84,224 $32.00 Jan-97
413 Vacant In-Line 6,624 $172,224 $26.00 Jan-97
306 Vacant In-Line 1,820 $69,160 $38.00 Apr-97
338 Vacant In-Line 3,399 $108,768 $32.00 Apr-97
405 Vacant In-Line 3,412 $109,184 $32.00 Jul-97
491 Vacant In-Line 2,042 $65,344 $32.00 Oct-97
218 Vacant In-Line 603 $36,180 $60.00 Oct-97
354 Vacant In-Line 1,794 $68,172 $38.00 Apr-98
441 Vacant In-Line 1,556 $59,128 $38.00 Apr-98
402 Vacant In-Line 1,654 $62,852 $38.00 Jul-98
486 Vacant In-Line 1,635 $62,130 $38.00 Jul-98
110 Vacant In-Line 15,451 $278,118 $18.00 Oct-98
422 Vacant In-Line 1,342 $50,996 $38.00 Apr-99
389 Vacant In-Line 2,040 $65,280 $32.00 Apr-99
346 Vacant In-Line 3,348 $107,136 $32.00 Apr-99
421 Vacant In-Line 794 $38,112 $48.00 Jul-99
465 Vacant In-Line 2,498 $79,936 $32.00 Jul-99
================================================================================
Survey Total: 60,892 $1,780,880 $29.25
Vacancy Rate: 18.63%
================================================================================
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
COMMON AREA MAINTENANCE EXPENSE COMPARABLES
Cushman & Wakefield, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Budget Year No. Total Shop Budgeted Expense
No. Area Location State Year Built Stories GLA GLA CAM Expense Per Sq/Ft Location
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 Saratoga County MSA NY 1995 1990/91/93 1 656,501 256,668 $1,900,000 $7.40 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
2 Syracuse MSA NY 1995 1954/96 2 1,035,525 410,818 $2,750,000 $6.69 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
3 Syracuse MSA NY 1995 1988/94 1 776,571 311,557 $2,100,000 $6.74 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
4 Rochester MSA NY 1995 1967/93 2 1,533,574 495,040 $3,265,000 $6.60 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
5 Jefferson County MSA NY 1995 1986/93 1 635,765 209,873 $922,000 $4.39 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
6 Buffalo MSA NY 1996 1985/89 1 753,105 285,771 $1,665,000 $5.83 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
7 White Plains MSA NY 1995 1980/93 4 882,689 326,774 $3,190,000 $9.76 Urban
- ------------------------------------------------------------------------------------------------------------------------------------
8 Fairfield County MSA CT 1995 1986/91 2 1,270,146 499,868 $3,583,000 $7.17 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
9 Meriden MSA CT 1994 1971/94 2 711,626 292,877 $2,550,000 $8.71 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
10 Worcester County MSA MA 1996 1971/87 1 445,875 182,372 $1,410,000 $7.73 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
11 Boston MSA MA 1995 1980/93 1 322,120 155,080 $1,600,000 $10.32 Urban
- ------------------------------------------------------------------------------------------------------------------------------------
12 Bristol County MSA MA 1995 1992 2 1,005,595 349,107 $2,055,000 $5.89 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
13 Bristol County MSA MA 1995 1987/89 2 967,363 374,630 $2,762,000 $7.37 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
14 Essex County MSA MA 1995 1993/94 2 863,344 329,065 $2,315,000 $7.04 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
15 Kingston MSA MA 1994 1989/92 1 771,007 295,562 $1,682,000 $5.69 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
16 Burlington MSA VT 1995 1979/89/92 1 490,424 185,398 $1,000,000 $5.39 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
17 Bucks County MSA PA 1995 1968/75 1 348,309 305,212 $1,824,000 $5.98 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
18 Westminster MSA MD 1995 1987/94 1 524,964 193,557 $1,350,000 $6.97 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
19 Washington-Baltimore MD 1995 1979/93 2 661,639 245,217 $1,880,000 $7.67 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
20 Baltimore MSA MD 1995 1956/91 1 863,376 242,376 $1,940,000 $8.00 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
21 Prince William Cty. MSA VA 1995 1972/96 1 716,796 278,494 $1,600,000 $5.75 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
22 Arlington MSA VA 1994 1986 4 491,057 222,800 $1,930,000 $8.66 Urban
- ------------------------------------------------------------------------------------------------------------------------------------
23 Chicago/DuPage County IL 1995 1962/91 1 2,012,865 830,287 $5,790,000 $6.97 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
24 Chicago/DuPage County IL 1995 1975/96 2 1,477,103 569,926 $4,928,000 $8.65 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
25 Chicago/Cook County IL 1995 1976/94 2 1,251,294 499,999 $4,176,000 $8.35 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
26 Vernon Hills MSA IL 1995 1973/89 2 1,063,706 503,480 $2,500,000 $4.97 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
27 Bloomingdale MSA IL 1995 1981/88/91 2 1,292,186 427,609 $2,030,000 $4.75 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
28 Minneapolis MSA MN 1995 1962/94 1 982,228 201,561 $1,950,000 $9.67 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
29 Milwaukee MSA WN 1995 1972 1 1,014,851 395,598 $2,420,000 $6.12 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
30 Milwaukee MSA WN 1995 1970 1 1,257,676 371,420 $2,700,000 $7.27 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
31 Genesee County MSA MI 1995 1980/93 1 451,036 230,625 $902,000 $3.91 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
32 Louisville/Clark County IN 1995 1990 1 750,343 306,059 $1,676,000 $5.48 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
33 Indianapolis MSA IN 1995 1966/87 1 1,239,059 260,359 $1,431,000 $5.50 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
34 Tampa MSA FL 1995 1995 1 977,047 359,579 $1,980,000 $5.51 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
35 Plantation MSA FL 1995 1979/93 1 1,004,061 282,952 $1,829,000 $6.46 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
36 Miami MSA FL 1995 1982 1 1,120,827 290,385 $1,820,000 $6.27 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
37 Coral Springs MSA FL 1995 1984/96 1 1,171,127 293,183 $1,700,000 $5.80 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
38 North/Central Kansas KS 1995 1987/90 1 400,307 185,324 $830,000 $4.48 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
39 Amarillo MSA TX 1995 1982/86 1 889,508 316,190 $1,180,000 $3.73 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
40 Las Vegas MSA NV 1995 1992 1 241,580 241,580 $3,190,000 $13.20 Urban
- ------------------------------------------------------------------------------------------------------------------------------------
41 Las Vegas MSA NV 1994 1981/93 2 819,374 286,936 $2,455,000 $8.56 Urban
- ------------------------------------------------------------------------------------------------------------------------------------
42 Knoxville MSA TN 1995 1972/94 1 1,333,018 382,150 $1,810,000 $4.74 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
43 Nashville MSA TN 1995 1990 2 716,462 373,662 $2,280,000 $6.10 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
44 Riverside County MSA CA 1995 1970/91 1 1,044,536 411,640 $3,000,000 $7.29 Suburban
- ------------------------------------------------------------------------------------------------------------------------------------
45 Seattle MSA WA 1995 1979/95 1 1,012,754 311,019 $1,400,000 $4.50 Suburban
====================================================================================================================================
Survey Mean: 894,452 328,436 $2,205,556 $6.76
====================================================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
==================================================================================================================================
OPERATING EXPENSE STATISTICS
Cushman & Wakefield, Inc.
- ----------------------------------------------------------------------------------------------------------------------------------
ULI ULI ULI ULI ULI ULI ULI ULI ICSC
--- --- --- --- --- --- --- --- ----
Super-Regional Super-Regional Super-Regional Super-Regional Regional Regional Regional Regional Enclosed Malls
centers/ centers/ centers/ centers/ centers/ centers/ centers/ centers/ U.S.
U.S. U.S. East East U.S. U.S. East East Total
Average Median Average Median Average Median Average Median Survey
==================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Property Profile
Total CIA: 999,544 1,009,585 935,436 937,742 582,893 579,154 644,794 676,000 744,050
Total Owned CIA: 563,889 535,272 531,461 463,976 461,822 435,855 512,183 446,114 441,394
Shop Sales/sf': $203.09 $198.93 $220.64 $163.81 $178.16 $183.54 $204.96 $183.05 $222.04
Operating Income
Minimum Rent: $16.30 $16.79 $17.14 $18.17 $12.05 $11.33 $13.62 $11.99 $17.60
Overage Rent: $1.14 $1.04 $1.40 $1.25 $0.86 $0.76 $0.92 $1.00 -
CAM Charges: $4.86 $4.60 $5.01 $4.70 $3.34 $3.23 $4.33 $4.02 $5.73
Property Taxes: $1.72 $1.54 $1.79 $1.52 $1.13 $1.06 $1.62 $1.32 $1.84
Insurance: $0.11 $0.06 $0.13 $0.14 $0.09 $0.08 $0.13 $0.05 $0.15
Utilities: $1.74 $1.84 $2.36 $2.43 $1.55 $1.18 $1.35 $0.65 $0.73
Other: $1.15 $0.62 $1.24 $0.53 $0.42 30.37 $0.28 $0.34 $0.28
------ ----- ----- ----- ----- ----- ----- ----- ----- -----
Total Income: $27.32 $27.32 $29.08 $28.69 $19.38 $18.38 $23.26 $22.26 $27.60
Operating Expenses
Total Maintenance**: $4.50 $4.45 $4.85 $4.67 $3.43 $3.16 $4.11 $3.50 $4.33
Real Estate taxes: $1.86 $1.55 $2.04 $1.51 $1.27 $1.16 $1.75 $1.19 $2.31
Insurance: $0.32 $0.28 $0.40 $0.29 $0.26 $0.23 $0.30 $0.26 $0.37
Advertising: $0.60 $0.44 $0.83 $0.61 $0.56 $0.46 $0.64 $0.35 $1.18
Administrative***: $0.87 $0.74 $0.82 $0.71 $0.93 $0.82 $0.96 $0.80 $1.05
Management Fee: $0.63 30.59 $0.61 $0.55 $0.46 $0.39 $0.53 $0.42 $0.75
--------------- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total Expenses: $9.26 $6.87 $9.84 $8.47 $7.36 $8.83 $8.89 $7.38 $11.06
OER: 33.9% 32.5% 33.8% 29.6% 37.0% 34.9% 38.2% 33.2% 40.1%
Net Operating Income $17.63 $17.12 $18.72 $17.01 $12.02 $10.85 $14.33 $13.28 $18.26
<CAPTION>
============================================================================================================
Regional & Super-Regional Malls
East
- ------------------------------------------------------------------------------------------------------------
ICSC ICSC ICSC ICSC ICSC
---- ---- ---- ---- ----
Enclosed Malls Enclosed Malls Enclosed Malls Enclosed Malls. Enclosed Malls.
U.S. U.S. U.S. East East
500,000- 800,000- Over Median Median
799,999sf 999,999sf 1,000,000sf <800,000sf >800,000sf
============================================================================================================
<S> <C> <C> <C> <C> <C>
Property Profile
Total CIA: 617,499 900,813 1,146,133 324,816 988,503
Total Owned CIA: 460,399 515,392 575,309 280,740 835.789
Shop Sales/sf': $201.55 $259.74 $255.55 $161.96 $251.73
Anchor Sales/sf: $145.82 $184.98 $171.34 $160.49 $174.86
Operating Income
Minimum Rent: $15.38 $19.85 $21.60 $16.32 $22.97
Overage Rent: -- -- -- -- --
CAM Charges: $5.45 $823 $7.24 $4.28 $7.96
Property Taxes: $1.14 $2.76 $2.82 $1.63 $3A5
Insurance: $0.17 $0.19 $0.13 $0.13 $0.15
Utilities: $1.56 $0.78 $1.08 $0.40 $1.05
Other: $0.22 $0.38 $0.39 $0.10 $0.54
------ ----- ----- ----- ----- -----
Total Income: $26.22 $32.90 $36.06 $21.81 $39.42
Operating Expenses
Total Maintenance** $4.65 $5.45 $5.52 $3.27 $6.11
Real Estate taxes: $1.82 $3.32 $3.30 $2.37 $3.95
Insurance: $0.34 $0.42 $0.43 $0.39 $0.43
Advertising: $1.04 $1.37 $1.81 $0.77 $1.37
Administrative***: $1.02 $1.21 $1.29 $0.83 $1.51
Management Fee: $0.65 $0.91 30.95 $0.51 $1.06
--------------- ----- ----- ----- ----- -----
Total Expenses: $10.60 $12.66 $13.66 $10.09 $16.69
OER: 40.0% 38.4% 37.9% 46.7% 39.5%
Net Operating Income $14.55 $19.31 $21.19 $1433 $24.27
</TABLE>
- ----------
* Average sales Include all mall shop tenants.
** CAM expenses Include repairs & maintenance, utilities, and security.
*** Management fees & bad debt allowances have teen deducted from
administrative costs. Management has been shown separately.
Source: Urban Land Institute "Dollars & Cents" (1995); International Council of
Shopping Centers "The Score" (1996).
(Because the data are means/medians dated amounts do not add to totals)
================================================================================
<PAGE>
<TABLE>
<CAPTION>
=================================================================================================================================
----------------------------------------------
REIMBURSABLE EXPENSE ANALYSIS Gross Leasable Area: 326,813
White Plains Galleria (White Plains, New York) (Mall Shops Food Court Kiosks)
Cushman & Wakefield, Inc. ----------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
Actual Actual Projected Budget
1993 1994 1995 1996
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
OPERATING EXPENSES
Advertising/Promotion $4,007 $0.01 $6,193 $0.02 $1,040 $0.00 $1,040 $0.00
Administrative $77,753 $0.24 $118,539 $0.36 $75,635 $0.23 $69,800 $0.21
Janitorial Cleaning $987,623 $3.02 $992,969 $3.04 $1,127,000 $3.45 $1,128,000 $3.45
Building Renovation: $3,113 $0.01 $20,797 $0.06 $13,680 $0.04 $13,680 $0.04
Lawn Maintenance: $18,927 $0.06 $108,677 $0.33 $60,800 $0.19 $60,800 $0.19
Security: $721,695 $2.21 $717,815 $2.20 $806,344 $2.47 $805,800 $2.47
Rubbish Removal $32,838 $0.10 $34,242 $0.10 $30,252 $0.09 $34,200 $0.10
Snow Removal $544 $0.00 $1,916 $0.01 $2,000 $0.01 $2,000 $0.01
Parking Lot $300,000 $0.92 $201,056 $0.62 $100,000 $0.31 $2,000 $0.01
Building Maint/Repair: $1,019,309 $3.12 $1,185,142 $3.63 $1,280,147 $3.92 $1,246,389 $3.81
Payroll Salary Bonus $276,284 $0.85 $206,881 $0.63 $228,380 $0.70 $235,672 $0.72
Payroll Tax Insurance- $44,838 $0.14 $46,359 $0.14 $45,676 $0.14 $47,137 $0.14
Other Operating $128,108 $0.39 $126,925 $0.39 $133,908 $0.41 $108,236 $0.33
General Insurance $178,424 $0.55 $177,212 $0.54 $184,761 $0.57 $184,761 $0.57
Professional Services $469,651 $1.44 $209,220 $0.64 $87,400 $0.27 $96,514 $0.30
Utility-Electric $1,080,613 $3.31 $1,020,628 $3.12 $1,039,256 $3.18 $1,039,256 $3.18
-Gas/Fuel $55,911 $0.17 $56,749 $0.17 $80,902 $0.25 $80,902 $0.25
-Water/Sewer $119,450 $0.37 $58,688 $0.18 $94,800 $0.29 $96,720 $0.30
Rest Estate taxes: $2,191,652 $6.71 $2,367,435 $7.24 $2,504,654 $7.66 $2,631,484 $8.05
Miscellaneous- $0 $0.00 $1,528 $0.00 $0 $0.00 $0 $0.00
Management Fees: $298819 $0.91 $438.845 $1.34 $395,834 $1.21 $381,295 $1.17
---------------- ------- ----- -------- ----- ------- ----- -------- -----
Total Expenses: $8,009,667 $24.61 $9,097,916 $24.78 $9,292,469 $25.37 $6,265,686 $26.29
=================================================================================================================================
Reimbursable Expense*
Common Area Maintenance** $2,962,585 $3,028,643 $3,120,006 $3,024,360
Central Plant utilities $1,418,545 $1,440,649 $1,522,030 $1,440,346
Water/Sewer $88,871 $43,664 $70,531 $78,800
Food Court $262,144 $254,863 $291,349 $341,220
Real Estate Taxes $2 191.652 $2.367.435 $2.504 654 $2,631,484
----------------- ---------- ---------- ---------- ----------
Subtotal: $8,923,797 $7,135,253 $7,508,570 $7,616,210
Nonreimbursable Expense**
Administrative. $786,942 $522,190 $388,066 $368,181
Management $298,819 $438,645 $395,834 $381,295
Miscellaneous: $0 $1.528 $0 $0
-------------- -- ------ -- --
Subtotal: $1,065,761 $962,663 $783,900 $749,476
Total Expense $8,009,568 $8,097,817 $8,292,470 $6,265,666
=================================================================================================================================
* Based upon allocations budget.
** Does not include amortization/depreciation pass-through.
=================================================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
=================================================================================================================================
SENSITIVITY ANALYSIS
Galleria (White Plains, New York) 1 2 3 4 5 6 7
Cushman & Wakefield, Inc. 1997 1998 1999 2000 2001 2002 2003
=================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
Effective Gross Income: $16,883,885 $18,553,148 $19,290,187 $19,893,378 $20,040,946 $20,789,630 $21,208,252
Operating Expenses: $8,317,818 $8,667,002 $8,986,304 $9,294,140 $9,601,716 $9,927,026 $10,259,468
Net Operating Income: $8,565,847 $9,886,148 $10,303,883 $10,599,238 $10,439,230 $10,862,804 $10,948,784
Net Cash Flow: $7,787,017 $9,288,204 $9,904,001 $10,4316842 $10,245,270 $10,643,978 $10,738,979
Property Value: $99,000,000
Net Sales Price: $101,533,391 $105,823,458 $108,857,018 $107,213,714 $111,561,879 $112,446,765 $115,690,908
Net Cash Flow: $7,787,017 $9,266,204 $9,904,001 $10,431,642 $10,245,270 $10,643,978 $10,738,979
-NOI Return: 8.65% 9.99% 10.41% 10.71% 10.54% 10.97% 11.06%
-Cash-On-Cash Return: 7.87% 9.38% 10.00% 10.54% 10.35% 10.75% 10.85%
Discounted Income Steam
Discounted Sales Price: $91,265,970 $85,503,109 $79,059,921 $69,992,299 $65,465,987 $59,312,585 $54,852,837
Discounted Cash Flow: $6,999,566 $7,486,896 $7,193,009 $6,810,086 $6,012,060 $5,614,406 $5,091,701
Net Present Value: $98,265,536 $99,989,572 $100,739,392 $98,481,857 $99,967,605 $99,428,608 $100,060,561
<CAPTION>
=================================================================================================================
------------------
8 9 10 11 CAGR CAGR
2004 2005 2006 2007 1997-08 1999-08
=================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Effective Gross Income: $21,870,594 $21,984,148 $22,432,827 $23,427,838 3.2% 2.2%
Operating Expenses: $10,605,953 $10,954,467 $11,319,376 $11,713,918 3.5% 3.4%
Net Operating Income: $11,264,641 $11,029,681 $11,113,451 $11,713,920 2.9% 1.1%
Net Cash Flow: $10,998,820 $10,744,180 $10,754,798 3.7% 1.2%
Property Value: $120,306,124 2.2%
------------------
------------------
Net Sales Price: $113,277,805 $114,138,145 $120,305,124 Average Returns
Net Cash Flow: $10,996,820 $10,744,180 $10,754,798 Over Holding Period
-NOI Return: 11.38% 11.14% 11.23% NOI 10.6%
-Cash-On-Cash Return: 11.11% 10.85% 10.88% Cash 10.3%
Discounted Income Steam Yield Composition
Discounted Sales Price: $48,277,488 $43,725,082 $41,427,042 Revision 41.8%
Discounted Cash Flow: $4,686,698 $4,115,979 $3,703,412 Cash Flow 58.2%
Net Present Value: $98,171,911 $97,735,483 $99,140,858 Total Value 100.0%
------------------
</TABLE>
<TABLE>
<CAPTION>
=================================================================================================
ASSUMPTIONS & CONCLUSIONS
=================================================================================================
Value Range: Low High Conclusion
Discount Rate: 11.76% 11.00% 11.26%
Terminal Cap Rate: 9.50% 8.75% 9.25%
=================================================================================================
<S> <C> <C> <C>
Value Range/conclusion: $95,038,389 $103,143,017 $99,000,000
-------------------------------------------------------------------------------------------------
- Going-In Cap Rate: 9.01% 8.30% 8.65%
-------------------------------------------------------------------------------------------------
- Price/sf Owned GLA: $290.80 $315.60 $302.93
-------------------------------------------------------------------------------------------------
- Price/sf Mall Shop GLA: $290.80 $315.60 $302.93
=================================================================================================
</TABLE>
<TABLE>
<CAPTION>
=================================================================================================
SALE-YIELD MATRIX
=================================================================================================
Net Reversion Terminal Discount Rate (IRR)
Cost of sale: Capitalitization --------------------------------------------------------
5.00% Rate 11.00% 11.25% 11.50% 11.75%
=================================================================================================
<S> <C> <C> <C> <C> <C>
$127,179,703 8.75% $103,143,017 $101,508,115 $99,908,137 $98,342,216
-------------------------------------------------------------------------------------------------
$123,646,933 9.00% $101,898,831 $100,291,607 $98,718,631 $97,179,055
-------------------------------------------------------------------------------------------------
$120,305,124 9.25% $100,721,898 $99,140,856 $97,593,422 $96,078,767
-------------------------------------------------------------------------------------------------
$117,139,200 9.50% $ 99,606,908 $98,050,670 $96,527,435 $95,038,389
=================================================================================================
</TABLE>
<PAGE>
[GRAPHIC OMITTED]
[Regional Location Map]
<PAGE>
Southern California Region
Demographic Profile
<TABLE>
<CAPTION>
State of Los Angeles Orange Riverside San Bernard San Diego Venture
California County County County County County County
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Description
2000 Projection 34,013,478 9,437,390 2,672,146 1,670,268 1,950,857 2,824,875 786,151
1995 Estimate 31,666,352 9,061,391 2,539,746 1,418,317 1,674,015 2,699,202 723,257
1990 Census 29,760,022 8,863,164 2,410,556 1,170,413 1,418,380 2,498,016 669,016
1980 Census 23,667,910 7,477,507 1,932,710 663,166 895,016 1,861,847 529,174
Annual Increase 1980-1995 2.0% 1.3% 1.8% 5.2% 4.3% 2.5% 2.1%
Annual Increase 1990-1995 1.2% 0.4% 1.0% 3.9% 3.4% 1.6% 1.6%
Annual Increase 1950-2000 1.4% 0.8% 1.0% 3.3% 3.1% 0.9% 1.7%
- -----------------------------------------------------------------------------------------------------------------------------------
Households
2000 Projection 12,050,506 3,173,740 949,451 576,868 652,615 1,055,160 269,441
1995 Estimate 11,142,914 3,067,548 693,154 489,802 554,881 992,296 243,560
1990 Census 10,381,206 2,989,552 827,066 402,067 464,737 887,403 217,298
1980 Census 8,629,867 2,730,469 686,267 242,937 308,643 670,094 172,781
Annual Increase 1980-1995 1.7% 0.8% 1.6% 4.8% 4.0% 2.7% 2.3%
Annual Increase 1990-1995 1.4% 0.5% 1.5% 4.0% 3.6% 2.3% 2.3%
Annual Increase 1995-2000 1.6% 0.7% 1.2% 3.3% 3.3% 1.2% 2.0%
- -----------------------------------------------------------------------------------------------------------------------------------
Avg Household Size
2000 Projection 2.82 2.97 2.81 2.90 2.99 2.68 2.92
1995 Estimate 2.84 2.95 2.84 2.90 3.02 2.72 2.97
1990 Census 2.87 2.96 2.91 2.91 3.05 2.81 3.08
1980 Census 2.74 2.74 2.82 2.73 2.90 2.78 3.06
- -----------------------------------------------------------------------------------------------------------------------------------
Household Income
Average $53,227 $53,900 $57,056 $47,230 $46,535 $50,936 $64,275
Median $41,395 $40,054 $54,407 $38,390 $38,620 $40,100 $54,441
- -----------------------------------------------------------------------------------------------------------------------------------
Per Capita Income $19,128 $18,604 $23,892 $16,628 $15,749 $19,385 $22,038
- -----------------------------------------------------------------------------------------------------------------------------------
Median Age 32.4 31.4 32.6 31.6 29.6 32.1 33.4
- -----------------------------------------------------------------------------------------------------------------------------------
Home-ownership 55.6% 48.2% 60.1% 67.4% 63.3% 53.8% 65.5%
- -----------------------------------------------------------------------------------------------------------------------------------
Median Home Price $195,500 $174,600 $205,900 $120,000 $120,000 $175,800 $214,200
(As of November 1995)
- -----------------------------------------------------------------------------------------------------------------------------------
Education
Bachelors Degree Only 15.3% 14.5% 18.7% 9.7% 9.8% 16.5% 15.1%
Graduate Degree 8.1% 7.8% 9.1% 4.9% 5.2% 8.8% 7.9%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Source: Equifax National Decision Systems
- --------------------------------------------------------------------------------
<PAGE>
Southern California Region
Employment Data ('000's)
<TABLE>
<CAPTION>
Finance,
Insurance & Compound
Trans. & Real Total Annual
Const. Mfg. Utilities Trade Estate Services Gov't Total Employment Change
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Los Angeles
Year 1980 153.0 938.6 214.1 934.3 382.6 1,134.3 508.0 4,264.9 4,319.0 --
1985 163.0 921.3 225.9 1,024.2 409.6 1,420.4 517.0 4,681.4 4,733.8 1.85%
1990 214.1 894.0 248.5 1,128.8 484.3 1,784.0 572.4 5,326.1 5,378.6 2.59%
1995 169.0 725.5 231.9 999.7 447.3 1,802.5 558.8 4,934.7 4,979.8 -1.53%
2000 169.7 724.1 227.5 990.2 465.2 1,905.6 566.1 5,048.4 5,092.5 0.45%
2010 165.1 717.1 221.4 985.2 499.2 2,100.5 590.6 5,279.1 5,322.7 0.44%
- -----------------------------------------------------------------------------------------------------------------------------------
Orange
Year 1980 61.4 226.1 31.0 235.7 115.2 247.4 121.4 1,038.2 1,058.4 --
1985 66.4 249.6 39.0 294.6 135.4 354.2 126.1 1,265.3 1,288.2 4.01%
1990 92.6 261.3 45.1 361.4 173.6 486.5 142.7 1,563.2 1,590.9 4.31%
1995 74.0 231.2 45.8 348.9 177.4 538.0 133.5 1,548.8 1,575.5 -0.19%
2000 76.0 245.8 48.8 373.2 198.4 612.5 135.9 1,690.6 1,718.0 1.75%
2010 77.4 265.5 54.6 424.5 240.7 764.2 146.2 1,973.1 2,002.1 1.54%
- -----------------------------------------------------------------------------------------------------------------------------------
Riverside
Year 1980 16.3 27.0 9.4 53.4 24.7 59.8 50.0 240.6 262.8 --
1985 25.4 30.2 10.9 68.5 25.6 81.3 54.5 296.4 322.3 4.17%
1990 47.1 38.7 15.3 96.7 34.3 125.1 70.3 427.5 456.2 7.20%
1995 40.3 40.2 15.1 106.6 35.0 146.8 71.8 455.8 484.5 1.21%
2000 45.3 44.6 15.7 116.9 37.8 162.6 75.1 498.0 528.0 1.73%
2010 48.5 51.2 17.0 138.3 43.1 193.4 84.4 575.9 607.8 1.42%
- -----------------------------------------------------------------------------------------------------------------------------------
San Bernardino
Year 1980 19.5 39.9 20.0 73.1 26.9 73.8 80.5 333.7 343.4 --
1985 29.4 42.3 24.4 91.4 25.1 104.5 91.9 409.0 420.4 4.13%
1990 44.2 55.3 29.0 127.6 33.0 150.7 106.7 546.5 558.8 5.86%
1995 37.6 58.5 32.1 142.1 35.8 177.7 110.1 593.9 606.0 1.63%
2000 40.2 65.0 33.7 156.5 38.7 197.3 114.5 645.9 658.0 1.66%
2010 39.0 74.6 36.2 184.2 43.4 232.4 123.3 733.1 745.7 1.26%
- ------------------- ----------------------------------------------------------------------------------------------------------------
San Diego
Year 1980 46.5 112.2 31.8 174.6 84.1 217.8 282.7 949.7 979.5 --
1985 63.6 127.6 36.3 220.7 98.5 304.5 286.6 1,137.8 1,166.9 3.56%
1990 83.9 142.3 44.2 282.1 120.2 414.9 315.6 1,403.2 1,435.5 4.23%
1995 73.7 137.1 43.8 281.1 118.5 473.8 301.0 1,429.0 1,460.3 0.34%
2000 83.6 153.1 47.8 314.4 129.4 541.1 303.0 1,572.4 1,604.6 1.90%
2010 98.0 177.5 55.8 387.8 152.7 688.7 318.7 1,879.2 1,913.2 1.77%
- ------------------------------------------------------------------------------------------------------------------------------------
Ventura
Year 1980 11.0 24.9 7.4 43.3 18.7 46.5 45.7 197.5 219.8 --
1985 14.0 29.7 9.2 56.4 20.3 64.8 46.5 240.9 261.9 3.57%
1990 23.0 35.6 13.4 68.1 25.0 91.7 51.0 307.8 331.2 4.81%
1995 19.2 36.0 12.6 70.7 27.1 112.4 51.5 329.5 353.8 1.33%
2000 20.2 40.0 13.4 75.7 29.3 129.6 52.9 361.1 386.2 1.77%
2010 19.1 45.9 14.9 84.7 32.9 162.8 55.4 415.7 441.9 1.36%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Source: Woods & Poole
- -------------------------------------------------------------------------------
<PAGE>
[GRAPHIC OMITTED]
[Map]
<PAGE>
TRIP ALLOCATION CHART
Century City North
================================================================================
<TABLE>
<CAPTION>
Area
Ref. Descriptions/ Parcel Land Improvements No. of Year
No. Address Ownership No. SF/Acres SF Stories Built
======================================================================================================================
======================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
1 Prime Sports Building RE International 4319-001-001 93,218 114,904 7 1977
10000 Santa Monica Investors, Inc. 2.14
Boulevard
- ----------------------------------------------------------------------------------------------------------------------
2 Northrop Plaza I Calif. State Teachers 4319-001-903 59,242 250,000 15 1970
1800 Century Park East Retirement System 1.26
- ----------------------------------------------------------------------------------------------------------------------
3 Northrop Plaza II Calif. State Teachers 4319-001-904 67,518 300,000 19 1983
1840 Century Park East Retirement System 1.55
- ----------------------------------------------------------------------------------------------------------------------
4 Century Park Building Held Properties 4319-001-005 59,677 285,000 15 1970
1880 Century Park East 1.37
- ----------------------------------------------------------------------------------------------------------------------
5 The 1888 Building JMB 1888 Partners 4319-001-006 93,654 487,308 21 1970
1888 Century Park East 2.15
- ----------------------------------------------------------------------------------------------------------------------
6 1940 Century Park Building 1940 Associates 4319-001-007 30,056 50,000 4 1965
1940 Century Park East 0.69
- ----------------------------------------------------------------------------------------------------------------------
7 AAA Club Building Automobile Club of 4319-001-008 29,621 53,303 N/A 1963
1950 Century Park East Southern California 0.68
- ----------------------------------------------------------------------------------------------------------------------
8 Vacant Land AP Properties, Ltd. 4319-001-009 17,860 vacant none none
NE/Century Park E and 0.41 land
between
Santa Monica & Olympic
Blvds
- ----------------------------------------------------------------------------------------------------------------------
9 Off Drilling Site #1 AP Properties, Ltd. 4319-001-010 60,113 vacant none none
2010 Century Park East 1.38 land
- ----------------------------------------------------------------------------------------------------------------------
10 Central Plant Century City, Inc. 4319-001-013 71,438 16,940 N/A 1965
2052 Century Park East 1.64
- ----------------------------------------------------------------------------------------------------------------------
11 Century City Medical Plaza Century City Medical 4319-001-014 80,586 350,000 9/18 1968
2070 Century Park East Plaza Land Co. 1.85
- ----------------------------------------------------------------------------------------------------------------------
12 Pacific Bell Station Pacific Bell 4319-001-803 54,886 N/A N/A N/A
NE/Century Park E 1.26
and between
Santa Monica & Olympic
Blvds
- ----------------------------------------------------------------------------------------------------------------------
13 Century Park Plaza JMB Group Trust III 4319-002-045 44,401 356,387 27 1973
1801 Century Park East 1.02
- ----------------------------------------------------------------------------------------------------------------------
14 Gateway East Topa Equities, Ltd. 4319-002-046 108,029 308,000 13 1964
1800 Avenue of the Stars 2.48
- ----------------------------------------------------------------------------------------------------------------------
15 Century Plaza Towers I & II Delta Towers JV 4319-002-061 524,462 2,250,000 44 1975
2029-49 Century Park East 12.04
- ----------------------------------------------------------------------------------------------------------------------
16 ABC Entertainment Delta Towers JV 4319-002-061 524,462 585,000 5 1972
2040 Avenue of the Stars (leased fee) 12.04
- ----------------------------------------------------------------------------------------------------------------------
17 Off Drilling Site #2 AP Properties, Ltd. 4319-002-053 110,642 N/A N/A N/A
NEC/Constellation Blvd and (Subject Development 2.54
Avenue of the Stars Parcel)
- ----------------------------------------------------------------------------------------------------------------------
18 Restaurant Site AP Properties, Ltd. 4319-002-054 33,106 17,313 N/A 1966
10131 Constellation Boulevard (Subject Development 0.76
Parcel)
- ----------------------------------------------------------------------------------------------------------------------
19 1st Los Angeles Bank AP Properties, Ltd. 4319-002-055 42,689 14,742 N/A 1974
1950 Avenue of the Stars (Subject Development 0.96
Parcel)
- ----------------------------------------------------------------------------------------------------------------------
20 1900 Ave. of the Stars Shuwa Investments 4319-002-056 108,900 570,000 28 1969
1900 Avenue of the Stars 2.50
- ----------------------------------------------------------------------------------------------------------------------
21 Century City North Aetna 4319-002-057 190,357 605,000 26 1971
10100 Santa Monica Boulevard 4.37
- ----------------------------------------------------------------------------------------------------------------------
22 Parking Garage N/A 4319-002-058 116,305 N/A N/A N/A
SW/Century Park E and between 2.67
Santa Monica & Olympia Blvds
======================================================================================================================
</TABLE>
================================================================================
Estimated
Unused Trips Replacement
Phase I Phase II Trips
================================================================================
1 Prime Sports Building 1,609
10000 Santa Monica
Boulevard
- --------------------------------------------------------------------------------
2 Northrop Plaza I 0 0 3,500
1800 Century Park East
- --------------------------------------------------------------------------------
3 Northrop Plaza II 0 0 4,200
1540 Century Park East
- --------------------------------------------------------------------------------
4 Century Park Building 0 0 3,990
1880 Century Park East
- --------------------------------------------------------------------------------
5 The 1888 Building 0 0 6,822
1888 Century Park East
- --------------------------------------------------------------------------------
6 1940 Century Park Building 0 0 700
1940 Century Park East
- --------------------------------------------------------------------------------
7 AAA Club Building 0 156.8 261
1950 Century Park East
- --------------------------------------------------------------------------------
8 Vacant Land 0 0 0
NE/Century Park E and
between
Santa Monica & Olympic
Blvds
- --------------------------------------------------------------------------------
9 Off Drilling Site #1 ** **
2010 Century Park East **included with site #8
- --------------------------------------------------------------------------------
10 Central Plan 0 0 0
2052 Century Park East
- --------------------------------------------------------------------------------
11 Century City Medical 0 0 0
Plaza
2070 Century Park East
- --------------------------------------------------------------------------------
12 Pacific Bell Station 0 0 0
NE/Century Park E
and between
Santa Monica & Olympic
Blvds
- --------------------------------------------------------------------------------
13 Century Park Plaza 0 0 4,968
1801 Century Park East
- --------------------------------------------------------------------------------
14 Gateway East 0 0 4,312
1800 Avenue of the Stars
- --------------------------------------------------------------------------------
15 Century Plaza Towers I & II 0 0 31,500
2029-49 Century Park East
- --------------------------------------------------------------------------------
16 ABC Entertainment 0 85.6 11,350
2040 Avenue of the Starts
- --------------------------------------------------------------------------------
17 Off Drilling Site #2 ** ** 0
NEC/Constellation Blvd and **included with site #18
Avenue of the Starts
- --------------------------------------------------------------------------------
18 Restaurant Site 1,077.3 10,000.0 794
10131 Constellation Boulevard
- --------------------------------------------------------------------------------
19 1st Los Angeles Bank ** ** 1,320
1950 Avenue of the Stars **included with site #18
- --------------------------------------------------------------------------------
20 1900 Ave. of the Stars 0 0 7,960
1900 Avenue of the Stars
- --------------------------------------------------------------------------------
21 Century City North 0 0 8,470
10100 Santa Monica Boulevard
- --------------------------------------------------------------------------------
22 Parking Garage 0 0 N/A
SW/Century Park E and between
Santa Monica & Olympia Blvds
- --------------------------------------------------------------------------------
<PAGE>
West Los Angeles Area
Residential Construction Activity - Permits Issued & Valuation
New single family, multi-family, and residential alterations & additions
Century Plaza Towers
<TABLE>
<CAPTION>
===================================================================================================================================
Annualized
City Name 1990 1991 1992 1993 1994 1995 1996
===================================================================================================================================
BEVERLY HILLS
<S> <C> <C> <C> <C> <C> <C> <C>
Units 120 62 26 39 6 40 10
Dollar Volume ($1,000s) 63,536.4 49,963.1 32,712.9 28,622.6 15,521.5 41,262.6 12,172.6
- -----------------------------------------------------------------------------------------------------------------------------------
CULVER CITY
Units 48 77 6 3 1 3 61
Dollar Volume ($1,000s) 11,178.4 17,784.8 4,242.5 4,738.8 3,382.0 2,905.3 12,537.0
- -----------------------------------------------------------------------------------------------------------------------------------
LOS ANGELES CITY
Units 11,826 5,815 2,627 2,063 2,429 2,637 1,674
Dollar Volume ($1,000s) 1,883,843.7 1,224,612.2 845,929.3 658,854.2 962,560.1 953,356.4 780,477.5
- -----------------------------------------------------------------------------------------------------------------------------------
SANTA MONICA
Units 308 339 218 122 39 66 269
Dollar Volume ($1,000s) 60,622.3 52,659.6 36,190.6 27,305.5 23,006.2 36,143.2 40,657.5
- -----------------------------------------------------------------------------------------------------------------------------------
WEST HOLLYWOOD
Units 86 50 30 48 1 2 8
Dollar Volume ($1,000s) 12,778.4 7,750.7 5,967.2 6,371.0 2,451.3 2,655.1 2,260.7
===================================================================================================================================
TOTAL TRADE AREA
Units 12,388 6,343 2,907 2,275 2,476 2,748 2,039
% of L.A. County 49.5% 39.2% 26.2% 31.3% 32.5% 32.7% 23.8%
Dollar Volume ($1,000s) 2,031,959.2 1,352,770.4 925,042.5 725,892.1 1,006,921.1 1,036,322.6 868,032.6
% of L.A. County 48.9% 42.3% 35.6% 38.0% 46.7% 45.9% 40.6%
===================================================================================================================================
LOS ANGELES COUNTY
Units 25,045 16,195 11,097 7,259 7,621 8,405 8,570
Dollar Volume ($1,000s) 4,155,565.2 3,197,540.0 2,600,387.2 1,910,098.4 2,154,472.9 2,256,613.3 2,136,836.1
===================================================================================================================================
*-Actual valuations through August, 1996 / + - Total figures include YTD 1996 /^-based on 1990-1995 valuation figures
</TABLE>
===============================================================================
Y-T-D* 6-year
City Name 1996 Total+ Average^
===============================================================================
BEVERLY HILLS
Units 8 301 49
Dollar Volume ($1,000s) 19,310.5 250,929.6 38,603.2
- -------------------------------------------------------------------------------
CULVER CITY
Units 51 189 23
Dollar Volume ($1,000s) 10,447.5 54,679.3 7,372.0
- -------------------------------------------------------------------------------
LOS ANGELES CITY
Units 1,116 28,513 4,566
Dollar Volume ($1,000s) 520,318.3 7,049,474.2 1,088,192.7
- -------------------------------------------------------------------------------
SANTA MONICA
Units 179 1,271 182
Dollar Volume ($1,000s) 27,105.0 263,032.4 39,321.2
- -------------------------------------------------------------------------------
WEST HOLLYWOOD
Units 5 222 36
Dollar Volume ($1,000s) 1,507.1 39,480.8 6,329.0
===============================================================================
TOTAL TRADE AREA
Units 1,359 30,496 4,856
% of L.A. County 23.8% 37.5% 38.5%
Dollar Volume ($1,000s) 576,688.4 7,657,596.3 1,179,818.0
% of L.A. County 40.6% 43.3% 43.5%
===============================================================================
LOS ANGELES COUNTY
Units 5,713 81,335 12,604
Dollar Volume ($1,000s) 1,424,557.4 17,699,234.4 2,712,446.2
===============================================================================
<PAGE>
West Los Angeles Area
Non-Residential Construction Activity - Permits Issued & Valuation
New commercial, industrial, other, and non-residential alterations & additions
Century Plaza Towers
<TABLE>
<CAPTION>
===================================================================================================================================
Annualized
City Name 1990 1991 1992 1993 1994 1995 1996
- ------------------------------------------------------------------------------------------------------------------------------------
<S>
BEVERLY HILLS
<C> <C> <C> <C> <C> <C> <C>
Dollar Volume ($1,000s) 93,821.1 82,369.0 104,394.3 140,752.5 71,331.3 84,304.6 68,285.9
% Change -- -12.2% 26.7% 34.8% -49.3% 18.2% -19.0%
- ------------------------------------------------------------------------------------------------------------------------------------
CULVER CITY
Dollar Volume ($1,000s) 23,915.3 48,549.5 30,066.5 21,251.7 32,800.7 23,661.8 29,616.6
% Change -- 103.0% -38.1% -29.3% 54.3% -27.9% 25.2%
- ------------------------------------------------------------------------------------------------------------------------------------
LOS ANGELES CITY
Dollar Volume ($1,000s) 3,464,582.5 2,466,002.5 1,693,117.0 1,559,425.7 2,172,635.8 1,656,967.3 1,538,217.6
% Change -- -28.8% -31.3% -7.9% 39.3% -14.5% -17.2%
- ------------------------------------------------------------------------------------------------------------------------------------
SANTA MONICA
Dollar Volume ($1,000s) 183,692.7 133,222.4 79,378.6 51,806.7 48,402.4 77,327.7 73,063.4
% Change -- -27.5% -40.4% -34.7% -6.6% 59.8% -5.5%
===================================================================================================================================
TOTAL TRADE AREA
Dollar Volume ($1,000s) 3,766,011.6 2,730,143.4 1,906,956.4 1,773,236.6 2,325,170.2 2,042,261.4 1,733,659.1
% of L.A. County 47.2% 46.0% 40.3% 43.4% 52.3% 48.1% 41.0%
% Change -- -27.5% -30.2% -7.0% 31.1% -12.2% -15.1%
===================================================================================================================================
LOS ANGELES COUNTY
Dollar Volume ($1,000s) 7,986,644.6 5,937,135.5 4,735,457.1 4,088,607.8 4,447,393.9 4,249,636.0 4,231,229.6
% Change -- -25.7% -20.2% -13.7% 8.8% -4.4% -0.4%
===================================================================================================================================
*-Actual valuations through August, 1996 / + - Total figures include YTD 1996 /^-Based on 1990-1995 valuation figures
</TABLE>
===============================================================================
Y-T-D* 6-year
City Name 1996 Total+ Average^
===============================================================================
BEVERLY HILLS
Dollar Volume ($1,000s) 56,904.9 633,877.7 96,162.1
% Change -- -- --
- --------------------------------------------------------------------------------
CULVER CITY
Dollar Volume ($1,000s) 24,680.5 204,926.0 30,040.9
% Change -- -- --
- --------------------------------------------------------------------------------
LOS ANGELES CITY
Dollar Volume ($1,000s) 1,025,478.4 14,238,209.2 2,202,121.8
% Change -- -- --
- --------------------------------------------------------------------------------
SANTA MONICA
Dollar Volume ($1,000s) 48,708.9 622,539.4 95,638.4
% Change -- -- --
===============================================================================
TOTAL TRADE AREA
Dollar Volume ($1,000s) 1,155,772.7 15,699,552.3 2,423,963.3
% of L.A. County 41.0% 45.8% 46.3%
% Change -- -- --
===============================================================================
LOS ANGELES COUNTY
Dollar Volume ($1,000s) 2,820,819.7 34,263,694.6 5,240,479.2
% Change -- -- --
===============================================================================
Dollar Volume in $1,000s Dollar Volume Percentage Change per Annum
[Graphic Omitted] [Graphic Omitted]
<PAGE>
Los Angeles County
MARKET & SUBMARKET STATISTICS
End of 2nd Quarter of 1996
<TABLE>
<CAPTION>
Direct Overall
Number Direct Vacancy Overall Vacancy Net Absorption
Market/Submarket Inventory of Bldgs Availabilities Rate Availabilities Rate 2nd Qtr YTD 1996
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CENTRAL LOS ANGELES 56,850,843 275 12,859,808 22.6% 13,923,288 24.5% 150,905 107,671
- ------------------------------------------------------------------------------------------------------------------------------------
1 Downtown Los Angeles 36,579,174 110 7,469,673 20.4% 8,228,958 22.5% (18,512) (65,768)
2 Mid-Wilshire Corridor 13,487,443 78 3,741,484 27.7% 3,999,687 29.7% 178,694 227,624
3 San Gabriel Valley 6,784,226 87 1,648,651 24.3% 1,694,643 25.0% (9,277) (54,185)
- ------------------------------------------------------------------------------------------------------------------------------------
WEST LOS ANGELES 40,278,865 316 6,616,604 16.4% 7,442,876 18.5% 276,675 47,253
- ------------------------------------------------------------------------------------------------------------------------------------
4 Hollywood/West Hollywood 3,874,934 45 753,982 19.5% 758,654 19.6% 65,346 (34,172)
5 Beverly Hills/Century City 14,351,740 89 2,141,386 14.9% 2,323,172 16.2% 248,632 196,757
6 Westwood/West Los Angeles 17,304,111 139 3,093,665 17.9% 3,582,927 20.7% (141,910) (169,577)
7 Marina Area/Culver City 4,748,080 43 627,571 13.2% 778,123 16.4% 104,607 52,245
- ------------------------------------------------------------------------------------------------------------------------------------
SOUTH LOS ANGELES 3,660,063 253 6,220,436 20.3% 6,978,719 22.8% (177,091) (541,499)
- ------------------------------------------------------------------------------------------------------------------------------------
8 LAX/El Segundo 13,669,986 88 3,076,644 22.5% 3,726,440 27.3% (203,256) (502,797)
9 Torrance 7,144,480 79 1,472,752 20.6% 1,532,089 21.4% (53,165) (5,628)
10 Long Beach 9,845,597 86 1,671,040 17.0% 1,720,190 17.5% 79,330 (33,074)
- ------------------------------------------------------------------------------------------------------------------------------------
NORTH LOS ANGELES 39,736,206 476 5,148,023 13.0% 6,422,931 16.2% 88,836 487,684
- ------------------------------------------------------------------------------------------------------------------------------------
11 Simi/Conejo Valley 4,630,037 90 530,810 11.5% 817,372 17.7% (2,522) (9,738)
12 West Valley 8,750,696 100 1,552,433 17.7% 2,033,396 23.2% (13,544) (99,717)
13 Central Valley 8,551,056 113 1,387,658 16.2% 1,570,098 18.4% 43,702 125,779
14 East Valley (including Pasadena) 17,804,415 173 1,677,122 9.4% 2,002,065 11.2% 61,200 471,360
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL 167,525,977 1320 30,844,871 18.4% 34,767,814 20.8% 339,325 101,109
====================================================================================================================================
</TABLE>
Wtd. Avg.
Market/Submarket Rental Rate
- -------------------------------------------------------
CENTRAL LOS ANGELES $18.60
- -------------------------------------------------------
1 Downtown Los Angeles $19.58
2 Mid-Wilshire Corridor $17.08
3 San Gabriel Valley $18.40
- -------------------------------------------------------
WEST LOS ANGELES $23.08
- -------------------------------------------------------
4 Hollywood/West Hollywood $18.34
5 Beverly Hills/Century City $24.24
6 Westwood/West Los Angeles $24.48
7 Marina Area/Culver City $17.16
- -------------------------------------------------------
SOUTH LOS ANGELES $16.92
- -------------------------------------------------------
8 LAX/El Segundo $15.72
9 Torrance $17.28
10 Long Beach $18.60
- -------------------------------------------------------
NORTH LOS ANGELES $20.70
- -------------------------------------------------------
11 Simi/Conejo Valley $18.84
12 West Valley $21.48
13 Central Valley $19.44
14 East Valley (including Pasadena) $21.60
- -------------------------------------------------------
TOTAL $19.47
=======================================================
[GRAPHIC OMITTED]
[MARKET SIZE COMPARISON CHART]
[GRAPHIC OMITTED]
[AVAILABILITIES CHART]
[GRAPHIC OMITTED]
[MARKET WEIGHTED AVERAGE RENTAL RATE COMPARISON CHART]
<PAGE>
LOS ANGELES COUNTY
Construction History Chart of Class A and B Buildings
==============================================================================
Year Central* West** North*** South Total
- ------------------------------------------------------------------------------
82 4,882,683 1,541,242 838,212 3,999,186 11,261,323
83 2,920,192 3,652,672 1,872,082 2,606,238 11,051,184
84 1,810,809 1,333,243 967,610 3,635,363 7,747,025
85 4,412,902 2,402,687 1,278,203 1,922,112 10,015,904
86 2,913,129 2,964,782 2,334,294 2,789,202 11,001,407
87 3,771,021 3,070,016 874,928 3,169,020 10,884,985
88 1,903,160 702,166 1,835,374 2,490,781 6,931,481
89 2,185,292 2,266,345 1,203,053 1,485,792 7,140,482
90 2,451,346 1,638,153 1,150,463 1,450,521 6,690,483
91 4,824,238 1,485,847 865,615 802,029 7,977,729
92 1,703,355 164,450 30,000 0 1,897,805
93 0 0 0 0 0
94 0 0 0 0 0
95 0 135,000 45,700 0 180,700
- ------------------------------------------------------------------------------
Total 33,778,127 21,356,603 13,295,534 24,350,244 92,780,508
==============================================================================
Annual Avg 2,412,723 1,525,472 949,681 1,739,303
- -------------------
* - Including Miracle Mile, Pasadena and Pasadena East
** - Excluding Miracle Mile
*** - Without Tri-Cities
Annual Office Building Construction Trend Line
Los Angeles County
[GRAPHIC OMITTED]
[Bar Chart of Annual Office Building Construction Trend Line]
<PAGE>
SUMMARY OF DEVELOPMENT CONSTRAINTS (POLITICAL)
LOS ANGELES AREA OFFICE MARKETS
Location Development Control
Suburban North
- --------------
Burbank Specific Plan
San Fernando Valley Specific Plan
Ventura Boulevard Specific Plan / Proposition U
Warner Center Specific Plan
Westside
- --------
Park Mile Specific Plan
Miracle Mile Interim Control Ordinance
Beverly Hills Restrictive Zoning
Westwood Specific Plan
Brentwood Proposition U / Specific Plan
West Los Angeles Proposition U
Santa Monica Restrictive Zoning / Specific Plan
Century City Specific Plan
<PAGE>
OFFICE MARKET VACANCY TRENDS
Los Angeles County
================================================================================
Including L.A. Central/Downtown Excluding L.A. Central/Downtown
Vacancy Rates Vacancy Rates
Year Quarter Direct Sublease Overall Direct Sublease Overall
- --------------------------------------------------------------------------------
1991 4th Qtr 19.0% 3.6% 22.6% 19.2% 3.3% 22.5%
- --------------------------------------------------------------------------------
1992 4th Qtr 19.4% 3.5% 22.9% 18.9% 2.7% 21.6%
- --------------------------------------------------------------------------------
1993 4th Qtr 18.8% 3.8% 22.5% 18.4% 3.0% 21.4%
- --------------------------------------------------------------------------------
1994 4th Qtr 18.7% 3.1% 21.8% 17.3% 2.3% 19.5%
- --------------------------------------------------------------------------------
1995 4th Qtr 18.7% 2.3% 21.0% 17.0% 2.4% 19.4%
- --------------------------------------------------------------------------------
1996 2nd Qtr 18.4% 2.4% 20.8% 16.2% 2.6% 18.8%
================================================================================
[GRAPHIC OMITTED]
[Vacancy Ratio Bar Graph
Excluding Los Angeles Central / Downtown Overall Vacancy Rate]
<PAGE>
Net Office Absorption vs Leasing Activity
LOS ANGELES COUNTY
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
Net Office Absorption Leasing Activity(SF) Net Absorption/Leasing Acitivity
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1990 8,258,928 18,950,547 43.6%
1991 2,261,311 18,648,618 12.1%
1992 (5,207) 16,905,261 0.0%
1993 (248,158) 17,561,549 -1.4%
1994 (997,235) 17,459,183 -5.7%
1995 272,154 18,535,438 1.5%
-------------------------------------------------------------------------------------------
Annual Average 1,590,299 18,010,116 8.8%
-------------------------------------------------------------------------------------------
</TABLE>
[GRAPHIC OMITTED]
[LINE GRAPH DEPICTING NET OFFICE ABSORPTION VS LEASING ACTIVITY]
<PAGE>
===============================================
HISTORICAL NET ABSORPTION
Los Angeles County Office Space
-----------------------------------------------
1989 to 1996*
-----------------------------------------------
Year NOA (sqft) % Decrease
---- ---------- ----------
1990 8,258,928
1991 2,261,311 -72.6%
1992 (5,207) -100.2%
1993 (248,158) 4665.9%
1994 (997,235) 301.9%
1995 272,154 -5326.7%
1996* 101,109 -62.8%
-----------------------------------------------
Total 9,642,902
-----------------------------------------------
Annual Average 1,377,557
[BAR GRAPH OMITTED]
Historical Net Office Absorption
<PAGE>
<TABLE>
<CAPTION>
Direct Overall
Number Direct Vacancy Overall Vacancy Net Aborption
Market / Submarket Inventory of Bldgs Availabilities Rate Availabilities Rate 3rd Qtr YTD 1996
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C> <C>
PARK MILE/WEST HOLLYWOOD 9,410,626 76 1,957,001 20.8% 2,270,126 24.1% (504) 107,917
- ------------------------------------------------------------------------------------------------------------------------------------
1 Park Mile 1,079,452 11 317,875 29.4% 335,858 31.1% 2,263 (64,882)
2 Miracle Mile 4,456,240 20 897,873 20.1% 1,188,343 26.7% (15,496) 194,242
3 Hollywood 2,576,475 30 505,328 19.6% 505,328 19.6% 25,655 (16,642)
4 West Hollywood 1,298,459 15 235,925 18.2% 240,597 18.5% (12,926) (4,801)
- ------------------------------------------------------------------------------------------------------------------------------------
BEVERLY HILLS/CENTURY CITY 14,363,192 89 1,942,687 13.5% 2,200,806 15.3% 198,699 397,456
- ------------------------------------------------------------------------------------------------------------------------------------
5 Beverly Hills 5,511,137 63 965,176 17.5% 1,065,092 19.3% 81,608 135,229
6 Century City 8,852,055 26 977,511 11.0% 1,135,714 12.8% 117,091 262,227
- ------------------------------------------------------------------------------------------------------------------------------------
WESTWOOD/WEST LOS ANGELES 17,304,476 139 2,632,460 15.2% 3,248,076 18.8% 461,196 291,619
- ------------------------------------------------------------------------------------------------------------------------------------
7 Westwood 4,084,735 21 440,967 10.8% 554,969 13.6% 66,135 138,274
8 Brentwood 3,254,337 23 393,567 12.1% 468,979 14.4% 37,345 6,020
9 Santa Monica 6,005,655 58 910,413 15.2% 1,281,327 21.3% 308,405 177,248
10 Pacific Palisades 160,407 3 35,956 22.4% 35,956 22.4% 21,732 181
11 West Los Angeles 3,799,342 34 851,557 22.4% 906,845 23.9% 27,579 (30,104)
- ------------------------------------------------------------------------------------------------------------------------------------
MARINA AREA/CULVER CITY 4,748,080 43 608,353 12.8% 736,579 15.3% 19,218 71,463
- ------------------------------------------------------------------------------------------------------------------------------------
12 Marina Del Rey/Venice/MarVista 1,104,431 11 102,914 9.3% 146,768 13.3% (18,662) 39,665
13 Culver City/Westchester 3,643,649 32 505,439 13.9% 589,811 16.2% 37,880 31,798
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL 45,826,374 347 7,140,501 15.6% 8,455,587 18.5% 678,609 868,455
====================================================================================================================================
</TABLE>
Wtd. Avg.
Market / Submarket Rental Rate
- -------------------------------------------------
PARK MILE/WEST HOLLYWOOD $19.13
- -------------------------------------------------
1 Park Mile $15.24
2 Miracle Mile $21.24
3 Hollywood $14.64
4 West Hollywood $25.92
- -------------------------------------------------
BEVERLY HILLS/CENTURY CITY $24.60
- -------------------------------------------------
5 Beverly Hills $25.68
6 Century City $23.40
- -------------------------------------------------
WESTWOOD/WEST LOS ANGELES $24.48
- -------------------------------------------------
7 Westwood $28.56
8 Brentwood $23.76
9 Santa Monica $27.72
10 Pacific Palisades $23.88
11 West Los Angeles $19.20
- -------------------------------------------------
MARINA AREA/CULVER CITY $17.28
- -------------------------------------------------
12 Marina Del Ray/ Venice/MarVista $19.08
13 Culver City/Westchester $16.92
- -------------------------------------------------
TOTAL $22.67
=================================================
[PIE GRAPH OMITTED] [BAR GRAPH OMITTED]
Market Size Comparison Chart Availabilities Bar Graph
[BAR GRAPH OMITTED]
Submarket Weighted Average Rental Rate Comparison Chart
<PAGE>
Century City
Summary of Rental and Occupancy Survey
Competitive Office Buildings November 1996
- ---------------------------------------------------------------------------
Top Tier Second Tier Third Tier Total
TOTALS Class A Class B Class B All Classes
- ---------------------------------------------------------------------------
Number of Buildings 5 11 4 20
Building Area (SF) 4,346,495 4,040,873 531,265 8,918,633
Availabilities
Direct
Square feet 196,136 674,652 72,144 942,932
Ratio 4.5% 16.7% 13.6% 10.6%
Sublease
Square feet 56,701 107,490 -- 164,191
Ratio 1.3% 2.7% 0.0% 1.8%
Overall
Square feet 252,837 782,142 72,144 1,107,123
Ratio 5.8% 19.4% 13.6% 12.4%
===========================================================================
- ---------------------------------------------------------------------------
Top Tier Second Tier Third Tier Average
AVERAGES Class A Class B Class B All Classes
- ---------------------------------------------------------------------------
Stories 37 20 5 21
Building Area (SF) 869,299 367,352 132,816 456,489
Floor Area (SF) 23,243 18,536 27,961 23,247
Year Built 1,980 1,972 1,973 1,975
Availabilities
Direct (SF) 13,076 20,444 6,012 13,177
Sublease (SF) 3,780 3,257 -- 2,348
Overall (SF) 8,428 11,851 3,006 7,762
Parking Ratio/1,000 SF 1 3 3 2
Monthly Parking Rates
Unreserved $124.00 $106.00 $113.00 $114.33
Unreserved $234.00 $179.00 $181.25 $198.08
Reserved $286.00 $238.80 $150.00 $224.93
Rentable Factor 1.16 1.14 1.14 1.15
1996 Taxes / Exp PSF $10.50 $9.50 $11.37 $10.46
===========================================================================
<PAGE>
CENTURY CITY
Rental and Occupancy Survey of Competitive Office Buildings
<TABLE>
<CAPTION>
Top Tier - Class "A" Buildings
==============================================================================================================================
Building Information Overall
Item Building Name / No. of Area Avg. Flr. Year Available Space (SF) Availability
No. Location Stories (SF) Area (SF) Built Floor(s) Direct Sublease (SF)
==============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
C-1 Sunamerica Center 39 774,274 19,853 1990 2 968 0
1999 Avenue of the Stars 2, 25 & 31 0 12,844 Total
---------- ------ ------
968 12,844 13,812
- ------------------------------------------------------------------------------------------------------------------------------
C-2 Fox Plaza 34 710,692 20,903 1987 Ground 4,053 0
2121 Avenue of the Stars 0 0 0 Total
---------- ------ ------
4,053 0 4,053
- ------------------------------------------------------------------------------------------------------------------------------
Subj. Century Plaza Towers - North 44 1,126,769 25,608 1975 14 - 27 0 33,683
2029 Century Park East 7, 37 - 44 41,255 0 Total
---------- ------ ------
41,255 33,683 74,938
- ------------------------------------------------------------------------------------------------------------------------------
Subj. Century Plaza Towers - South 44 1,125,888 25,588 1975 30 0 8,198
2049 Century Park East 3 - 44 62,079 0 Total
---------- ------ ------
62,079 8,198 70,277
- ------------------------------------------------------------------------------------------------------------------------------
C-3 Century City North 26 608,872 23,418 1971 9 0 1,976
10100 Santa Monica Blvd. 2 - 25 87,781 0 Total
---------- ------ ------
87,781 1,976 89,757
==============================================================================================================================
Top Tier Totals 187 4,436,495 23,243 Occupied 198,136 56,701 Vacant
-----------------
252,837
Total SF
==============================================================================================================================
<CAPTION>
November 1996
==============================================================================================================================
Quoted Occupancy Parking Monthly 1996
Item Building Name / Annual Rent Lease Ratio Ratio / Parking Rentable Taxes/
No. Location PSF PSF Type (incl. SL) 1,000 SF Rates Factor Exp PSF
==============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
C-1 Sunamerica Center $33.00 -- $36.00 FSG 98.2% 3.00 $127 1.175 $12.20
1999 Avenue of the Stars $28.80 -- $33.60 FSG $220
$286
- ------------------------------------------------------------------------------------------------------------------------------
C-2 Fox Plaza $30.00 -- $30.00 FSG 99.4% 2.75 $130 1.13 $13.00
2121 Avenue of the Stars -- -- -- -- $250
- ------------------------------------------------------------------------------------------------------------------------------
Subj. Century Plaza Towers - North $19.80 -- $24.00 FSG 93.3% 2.00 $121 1.157 $ 9.10
2029 Century Park East $21.00 -- $26.40 FSG $225
- ------------------------------------------------------------------------------------------------------------------------------
Subj. Century Palza Towers - South $22.20 -- $22.20 FSG 93.8% 2.00 $121 1.157 $ 9.10
2049 Century Park $21.00 -- $26.40 FSG $225
- ------------------------------------------------------------------------------------------------------------------------------
C-3 Century City North $21.00 -- $21.00 FSG 85.3% 2.50 $121 1.19 $ 9.10
10100 Santa Monica Blvd. $24.00 -- $30.00 FSG $250
- ------------------------------------------------------------------------------------------------------------------------------
Top Tier Totals $22.59 -- $28.13 Averages 1.23 $124 1.16 $10.50
Wtd. Avg. Rental Rate 94.2% $234
$286
</TABLE>
<TABLE>
<CAPTION>
Top Tier - Class "B" Buildings
==============================================================================================================================
Building Information Overall
Item Building Name / No. of Area Avg. Flr. Year Available Space (SF) Availability
No. Location Stories (SF) Area (SF) Built Floor(s) Direct Sublease (SF)
==============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
C-6 Northrop Plaza I 15 234,091 15,606 1970 Ground 0 0
1800 Century Park East 2, 4 & 7 13,401 0 Total
-------- ------ ------
13,401 0 13,401
- ------------------------------------------------------------------------------------------------------------------------------
C-7 Northrop Plaza II 19 290,000 15,263 1984 4, 5, 6 0 23,166
1840 Century Park East 6 & 7 14,976 0 Total
-------- ------ ------
14,976 23,166 38,142
- ------------------------------------------------------------------------------------------------------------------------------
C-8 Century Park Plaza 26 342,187 13,161 1973 Ground 9,475 0
1801 Century Park East 2 - 21 30,476 0 Total
-------- ------ ------
39,973 0 39,973
- ------------------------------------------------------------------------------------------------------------------------------
C-9 Watt Plaza - North Tower 23 412,000 17,913 1981 5 0 21,125
1875 Century Park East 3 28,757 0 Total
-------- ------ ------
28,757 21,125 49,882
- ------------------------------------------------------------------------------------------------------------------------------
C-10 Watt Plaza - South Tower 23 412,000 17,913 1982 2, 5, 22 0 30,516
1925 Century Park East 2 - 19 47,583 0 Total
-------- ------ ------
47,583 30,516 78,099
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
November 1996
==============================================================================================================================
Quoted Occupancy Parking Monthly 1996
Item Building Name / Annual Rent Lease Ratio Ratio / Parking Rentable Taxes/
No. Location PSF PSF Type (incl. SL) 1,000 SF Rates Factor Exp PSF
==============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
C-6 Northrop Plaza I -- -- -- -- 94.3% 3.00 $110 1.16 $12.20
1800 Century Park East $22.20 -- $22.80 FSG $160
- ------------------------------------------------------------------------------------------------------------------------------
C-7 Northrop Plaza II $21.60 -- $23.40 FSG 86.8% 3.00 $110 1.16 $12.00
1840 Century Park East $22.60 -- $24.00 $160
- ------------------------------------------------------------------------------------------------------------------------------
C-8 Century Park Plaza $19.20 -- $24.00 FSG 88.3% 2.00 $121 1.13 $10.83
1801 Century Park East $19.20 -- $24.00 FSG $143
$275
- ------------------------------------------------------------------------------------------------------------------------------
C-9 Watt Plaza - North Tower $19.20 -- $21.00 FSG 87.9% 3.00 $110 1.11 $7.50
1875 Century Park East $19.20 -- $25.20 FSG $198
$253
- ------------------------------------------------------------------------------------------------------------------------------
C-10 Watt Plaza - South Tower $15.00 -- $21.60 FSG 81.0% 3.00 $110 1.11 $7.50
1925 Century Park East $19.20 -- $25.20 FSG $198
$253
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
CENTURY CITY
Historical Net Office Absorption
Year Square Feet
1986 399,000
1987 358,000
1988 108,000
1989 (89,600)
1990 278,840
1991 126,859
1992 (258,913)
1993 48,648
1994 81,205
1995 173,451
1996 (3 qtrs) 262,227
Total Square Feet 1,487,717
Average Annual Absorption
1986 - 1995 122,549
1990 - 1995 75,015
Total Absorption
1990 - 1995 450,090
[BAR GRAPH OMITTED]
Historical Chart
<PAGE>
Historical Net Office Absorption
Westwood, Brentwood, West Los Angeles & Santa Monica
Year Square Feet
1984 1,174,000
1985 1,110,000
1986 578,650
1987 889,832
1988 724,276
1989 814,300
1990 286,600
1991 671,693
1992 371,031
1993 289,211
1994 (163,692)
1995 59,932
1996 (3 qtrs) 261,619
Total Square Feet 7,067,452
Average Annual Absorption
1984 - 1995 567,153
1990 - 1995 252,463
Total Absorption 6,805,833
[BAR GRAPH OMITTED]
Historical Chart
<PAGE>
BEVERLY HILLS
Historical Net Office Absorption
Year Square Feet
1986 107,000
1987 127,000
1988 191,000
1989 262,400
1990 (279,780)
1991 (169,399)
1992 112,282
1993 (2,818)
1994 45,581
1995 143,812
1996 (3 qtrs) 135,224
Total Square Feet 672,302
Average Annual Absorption
1986 - 1995 53,708
1990 - 1995 -25,054
Total Absorption
1990 - 1995 -150,322
[BAR GRAPH OMITTED]
Historical Chart
<PAGE>
<TABLE>
<CAPTION>
=====================================================================================================================
PROPOSED PROJECTS
West Los Angeles
=====================================================================================================================
PROJECTS OWNER/DEVELOPER TOTAL OCCUPIED
=====================================================================================================================
<S> <C> <C> <C>
Beverly Hills
Wilshire at Doheny N/A / N/A 43,810 --
101 N. La Cienega G.K Development 75,000 --
Sub-Total 118,810 --
=====================================================================================================================
Santa Monica
1733 0cean Avenue Maguire Thomas Partners / Maguire Thomas Partners 98,237 --
Santa Monica Business Park #F Barclay-Curci Investment / Barclay-Curci Investment 85,000 --
Santa Monica Water Garden II K. Young / J. H. Snyder & K. Young 600,000 --
The Arboretum (Phase II) K. Young 750,000 130,000
Sub-Total 1,533,237 130,000
=====================================================================================================================
West Los Angeles
11255-75 Olympic Boulevard Sycamore Investment Partnership / Douglas, Emmett & Co. 97,929 --
Sub-Total 97,929 --
=====================================================================================================================
Marina Del Rey/Venice/Mar Vista
Playa Vista Phase I N/A / Maguire Thomas Partners 1,250,000 --
Sub-Total 1,250,000 --
=====================================================================================================================
Culver City/Westchester
Marina Island - Bldg. I The Creative Group / The Creative Group 50,340 50,340
Marina Island - Bldg. II The Creative Group / The Creative Group 141,890 --
Marina Island - Bldg. III The Creative Group / The Creative Group 50,340 --
Summerlin Plaza Howard Hughes Properties / Summa Corporation 100,000 --
700 Corporate Pointe Bramalea Ltd., Developments / Bramalea Ltd., Developments 270,000 --
Sub-Total 612,570 50,340
=====================================================================================================================
Century City
Century City Center AP Properties 791,000 --
Sub-Total 791,000 --
=====================================================================================================================
Grand Total - All Markets: 4,403,546 180,381
=====================================================================================================================
</TABLE>
<PAGE>
[GRAPHIC OMITTED]
Map
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Primary Competitive Westside Markets
Net Office Absorption vs. Gross Leasing Activity
================================================================================
- --------------------------------------------------------------------------------
SF of Net SF of Gross Net Percentage
Year Market Absorption Leasing: of Total
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1992 Westwood (94,835) 364,693 -26.0%
Brentwood 15,286 363,480 4.2%
West Los Angeles (178,376) 340,721 -52.4%
Santa Monica 628,956 1,103,998 57.0%
Century City (258,913) 557,059 -46.5%
Beverly Hills 112,282 598,950 18.7%
Sub-total 1992: 224,400 3,328,901 6.7%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1993 Westwood 166,823 316,167 52.8%
Brentwood 19,779 375,836 5.3%
West Los Angeles 177,068 491,426 36.0%
Santa Monica (74,459) 658,637 -11.3%
Century City 48,648 832,760 5.8%
Beverly Hills (2,818) 599,523 -0.5%
Sub-total 1993: 335,041 3,274,349 10.2%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1994 Westwood 149,313 472,963 31.6%
Brentwood 37,078 316,825 11.7%
West Los Angeles (243,152) 244,735 -99.4%
Santa Monica (106,931) 560,465 -19.1%
Century City 81,205 722,317 11.2%
Beverly Hills 45,581 523,030 8.7%
Sub-total 1994: (36,906) 2,840,335 -1.3%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1995 Westwood 172,706 1,172,008 14.7%
Brentwood 148,907 887,428 16.8%
West Los Angeles (120,211) 653,433 -18.4%
Santa Monica (141,470) 935,947 -15.1%
Century City 173,451 1,713,498 10.1%
Beverly Hills 143,812 1,071,170 13.4%
Sub-total 1995: 377,195 8,433,484 5.9%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1996 Westwood 138,274 175,978 78.6%
Brentwood 6,020 69,587 8.7%
West Los Angeles (30,104) 71,613 -42.0%
Santa Monica 177,248 237,559 74.6%
Century City 262,227 123,037 213.1%
Beverly Hills 135,229 126,477 106.9%
Sub-total 3Qtrs 1996: 688,894 804,251 85.7%
- --------------------------------------------------------------------------------
---------------------------------------------------------------------------
Totals 1,588,624 16,681,320 9.5%
Annual Average 317,725 3,336,264 9.5%
===========================================================================
- --------------------------------------------------------------------------------
<PAGE>
[GRAPHIC OMITTED]
Map
<PAGE>
[GRAPHIC OMITTED]
Map
<PAGE>
SUMMARY OF COMPARABLE OFFICE BUILDING SALES
Westside Los Angeles
<TABLE>
<CAPTION>
=====================================================================================================
Improvement Description
- -----------------------------------------------------------------------------------------------------
Item Property Name / Date of Year No. of Rentable Occ. @
No. Location Sale Built Stories Area (SF) Sale
=====================================================================================================
<C> <S> <C> <C> <C> <C> <C>
I-1 Century City North 11/96 1972 26 608,872 90%
10100 Santa Monica Blvd.
Los Angeles (Century City), CA
- -----------------------------------------------------------------------------------------------------
I-2 10960 Wilshire Blvd. 11/96 1971 23 543,804 92%
Los Angeles (Westwood), CA Renovated
1994
- -----------------------------------------------------------------------------------------------------
I-3 MGM Plaza 11/96 1983- 3-6 1,038,757 99%
NEC Colorado Ave & 1991 (6 Bldgs.)
Cloverfield Blvd.
Santa Monica, CA
- -----------------------------------------------------------------------------------------------------
I-4 Wilshire Rodeo Plaza 12/95 1935-1949- 4-5 179,614 93%
9536-9560 Wilshire Blvd. 1986 3 82,548
1313 S. Rodeo Dr. -------
Beverly Hills, CA 262,162
- -----------------------------------------------------------------------------------------------------
I-5 Santa Monica Water Garden 7/95 1991 6 665,720 97%
1620 26th St. (2 Bldgs.)
2425 W. Olympic Blvd.
Santa Monica, CA
- -----------------------------------------------------------------------------------------------------
Subject Century Plaza Towers Escrow 1975 44 2,282,381 94%
2029-2049 Century Park East (2 Towers)
Los Angeles (Century City), CA
=====================================================================================================
<CAPTION>
==================================================================================================
Sales Price
- --------------------------------------------------------------------------------------------------
Item Property Name /
No. Location Total PSF OAR
==================================================================================================
<C> <S> <C> <C> <C>
I-1 Century City North $119,750,000 $196.68 11.4%
10100 Santa Monica Blvd. above-market rents
Los Angeles (Century City), CA
- --------------------------------------------------------------------------------------------------
I-2 10960 Wilshire Blvd. $133,000,000 $244.57 8.5%
Los Angeles (Westwood), CA Adjusted for free rent
6.5% based on projected
1st year NOI
- --------------------------------------------------------------------------------------------------
I-3 MGM Plaza $235,000,000 $226.23 9.8%
NEC Colorado Ave & Note purchase
Cloverfield Blvd.
Santa Monica, CA
- --------------------------------------------------------------------------------------------------
I-4 Wilshire Rodeo Plaza $81,000,000 $308.97 8.0% (1996 NOI)
9536-9560 Wilshire Blvd. 8.8% (1997 NOI)
1313 S. Rodeo Dr.
Beverly Hills, CA
- --------------------------------------------------------------------------------------------------
I-5 Santa Monica Water Garden $165,800,000 $249.05 8.9%
1620 26th St. Note purchase
2425 W. Olympic Blvd.
Santa Monica, CA
- --------------------------------------------------------------------------------------------------
Subject Century Plaza Towers $480,000,000 -- --
2029-2049 Century Park East escrow price
Los Angeles (Century City), CA including
ABC Leased Fee*
==================================================================================================
</TABLE>
* ABC Entertainment Center leased fee interest not a subject of this appraisal
<PAGE>
INVESTMENT CRITERIA
IMPROVED SALES DATA
<TABLE>
<CAPTION>
=====================================================================================
Item Rounded Buyer Profile/
No. Property/Market Location Price PSF Investment Indications
- -------------------------------------------------------------------------------------
<C> <S> <C> <C>
I-1 Century City North $197 Institutional Pension Fund Advisors
10100 Santa Monica Blvd. 11.4% OAR @ 90% occupancy;
Century City, CA above-market rents
- -------------------------------------------------------------------------------------
I-2 10960 Wilshire Blvd. $245 REIT Buyer
Westwood, CA 8.5% OAR @ 92% occupancy
6.5% OAR after free rent
- -------------------------------------------------------------------------------------
I-3 MGM Plaza $226 Pension Fund Advisors
Colorado Ave. LA Regional Focus
Santa Monica, CA 9.8% OAR @ 99% occupancy
- -------------------------------------------------------------------------------------
I-4 Wilshire Rodeo Plaza $309 Institutional Pension Fund Advisors
Wilshire Blvd./ 8.0% (1st year NOI)
S. Rodeo Drive 8.8% (2nd year NOI)
Beverly Hills, CA Includes Retail Component
- -------------------------------------------------------------------------------------
I-5 Santa Monica Water Garden $249 Institutional Fund Advisor
26th St./Olympic Blvd. 8.9% OAR @ 97% occupancy
Santa Monica, CA
=====================================================================================
</TABLE>
<PAGE>
ROLLOVER PROFILE
COMPARABLE SALES DATA
<TABLE>
<CAPTION>
=====================================================================================================================
Item % Leased % Rollover % Rollover Total % Total Vacancy & Rounded
No. @ Sale years 1-3 years 4-5 years 1-5 5-year Rollover % Price PSF
=====================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
I-1 90% 53% 29% 82% 92% $197
Century City North
- ---------------------------------------------------------------------------------------------------------------------
I-2 92% 7% 34% 41% 49% $245
10960 Wilshire Blvd.
- ---------------------------------------------------------------------------------------------------------------------
I-3 99% 1% 25% 43% 44% $226
MGM Plaza
- ---------------------------------------------------------------------------------------------------------------------
I-4 93% 8% 32% 40% 47% $309
Wilshire Rodeo Plaza
- ---------------------------------------------------------------------------------------------------------------------
I-5 97% 28% 10% 38% 41% $249
Santa Monica Water Garden
- ---------------------------------------------------------------------------------------------------------------------
Subject 94% 31% 18% 49% 55% --
=====================================================================================================================
</TABLE>
<PAGE>
Stacking Plan
CENTURY PLAZA TOWERS [LOGO]
2029 Century Park East o North Tower
<TABLE>
<CAPTION>
====================================================================================================================================
Tenant Name/ Square Feet Total Space Occupancy
Flr. No. Description Suite Vacant Occupied Floor (SF) Plan (9/96) Variance Ratio (%)
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C> <C> <C> <C> <C> <C>
1st 1 United CA Bank 100 14,190 14,190
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 0 14,190 14,190 14,190 0 100.0%
- ------------------------------------------------------------------------------------------------------------------------------------
2nd 2 Transit Casualty 200 25,221 25,221
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 0 25,221 25,221 25,221 0 100.0%
- ------------------------------------------------------------------------------------------------------------------------------------
3rd 3 Deloitte & Touche 300 25,221 25,221
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 0 25,221 25,221 25,221 0 100.0%
- ------------------------------------------------------------------------------------------------------------------------------------
4th 4 Cohen, Primiani & Fost 400 5,545 5,545
5 World Cup USA (EXPIRED) 400
6 Conference Center 410 2,420 2,441
7 Jane Teis 415-E 849 849
8 Envirotech 420-E 826 826
9 Brentnall Turley 422-E 1,754 1,754
10 Concorde Capital 430 1,338 1,338
11 Warner Inc 433 827 827
12 Paul Livadry 437 1,306 1,306
13 Pacific Properties 448-E
14 Suzy Vaughan (Must Take) 448 1,390 1,390
15 Suzy Vaughan 450 1,752 1,752
16 Cohen & Primiani 480 7,214 7,214
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 2,420 22,801 25,221 25,242 -21 90.4%
- ------------------------------------------------------------------------------------------------------------------------------------
5th 17 Bernstein & Fox 500 6,168 6,168
18 Bernstein & Fox 510 2,179 2,176
19 Century Hospital 520 8,677 8,677
20 Promax 555-T 5,275 5,275
21 Licker & Ozurivich 590 2,921 2,921
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 0 25,220 25,220 25,217 3 100.0%
- ------------------------------------------------------------------------------------------------------------------------------------
6th 22 Barrister Suites 600-E 25,221 25,221
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 0 25,221 25,221 25,221 0 100.0%
- ------------------------------------------------------------------------------------------------------------------------------------
7th 23 Xerox Corporation 700-T 17,393 17,393
24 Xerox Expansion 720-T 1,833 1,835
25 Vacant 750-V 5,995 5,996
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 5,995 19,226 25,221 25,224 -3 76.2%
- ------------------------------------------------------------------------------------------------------------------------------------
8th 26 National Rx 800 6,914 6,914
27 Vacant 0810-V 2,367 2,328
28 Phoenix, Duff & Phelps 820 5,843 5,843
29 Gallizio 830 1,168 1,168
30 Kenyon Company 840 1,479 1,479
31 Freid & Goldsman 860 5,664 5,664
32 Pegasus Property 880-E 1,786 1,786
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 2,367 22,854 25,221 25,182 39 90.6%
- ------------------------------------------------------------------------------------------------------------------------------------
9th 33 Neilsen Elggren 900 & 8,289 8,289
34 Largo 920-E 6,459 6,459
35 Norwest Mortgage 930 934 934
36 Westmount Managemt 940 2,691 2,691
37 Cruise Fairs 950 4,758 4,758
38 JVC Entertainment 970 2,170 2,170
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 0 25,301 25,301 25,301 0 100.0%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Stacking Plan for North Tower 1 of 4
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
Tenant Name/ Square Feet Total Space Occupancy
Flr. No. Description Suite Vacant Occupied Floor (SF) Plan (9/96) Variance Ratio (%)
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C> <C> <C> <C> <C> <C>
20th 78 Vacant 2000-V 3,805 3,805
79 Kagan Insurance 2010 4,651 4,651
80 Prudential 2050-T 12,403 12,403
81 Jose Eber 2080 4,930 4,930
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 3,805 21,984 25,789 25,789 0 85.2%
- ------------------------------------------------------------------------------------------------------------------------------------
21st 82 Johnson & Higgins 2100 25,800 25,800
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 0 25,800 25,800 25,800 0 100.0%
- ------------------------------------------------------------------------------------------------------------------------------------
22nd 83 Johnson & Higgins 2200 25,800 25,800
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 0 25,800 25,800 25,800 0 100.0%
- ------------------------------------------------------------------------------------------------------------------------------------
23rd 84 Johnson & Higgins 2300 25,800 25,800
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 0 25,800 25,800 25,800 0 100.0%
- ------------------------------------------------------------------------------------------------------------------------------------
24th 85 Johnson & Higgins 2400 25,800 25,800
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 0 25,800 25,800 25,800 0 100.0%
- ------------------------------------------------------------------------------------------------------------------------------------
25th 86 JVC 2500 11,156 11,156
87 Klein & Martin 2550 14,785 14,875
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 0 25,941 25,941 26,031 -90 100.0%
- ------------------------------------------------------------------------------------------------------------------------------------
26th 88 Shapiro Posell 2600 25,800 25,800
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 0 25,800 25,800 25,800 0 100.0%
- ------------------------------------------------------------------------------------------------------------------------------------
27th 89 McCambridge 2700 22,616 22,616
90 Jack Samuels 2718 1,841 1,841
91 Tranquest 2730-E 1,504 1,504
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 0 25,961 25,961 25,961 0 100.0%
- ------------------------------------------------------------------------------------------------------------------------------------
28th 92 Health & Tennis (EXPIRED) 2800
93 Merrill Lynch 2800 18,877 18,131
94 Vacant 2850-V 853 1,779
95 Joseph Tabak 2860 3,694 3,694
96 Exclusive Toy Company 2870 1,371 1,371
97 Garlick & Tack 2890 1,925 1,925
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 853 25,867 26,720 26,900 -180 96.8%
- ------------------------------------------------------------------------------------------------------------------------------------
29th 98 Societe Generale 2900 9,793 9,793
99 Paterson Capital 2920 12,627 12,627
100 DT Joint Venture 2970-E 1,500 1,500
101 Winkler Securities 2980 1,278 1,278
102 Kenneth Shellan 2990 1,425 1,365
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 0 26,623 26,623 26,563 60 100.0%
- ------------------------------------------------------------------------------------------------------------------------------------
30th 103 Paine Webber 3000 26,720 26,720
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 0 26,720 26,720 26,720 0 100.0%
- ------------------------------------------------------------------------------------------------------------------------------------
31st 104 Altschuler Melvoin 3100 13,029 13,029
105 Murphey Marsilles 3110 8,481 8,173
106 Norris Bishton 3150 4,039 4,039
107 Incas France 3160 1,129 1,129
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 0 26,678 26,678 26,370 308 100.0%
- ------------------------------------------------------------------------------------------------------------------------------------
32nd 108 Seyfarth Shaw 3200 7,305 7,305
109 Seyfarth 3210 6,957 6,957
110 Barlow & Kabata 3230 1,803 1,803
111 Vacant 3240-V 1,569 1,569
112 Wyman Isaccs 3250 5,876 5,876
113 Seyfarth Shaw 3270 1,523 1,523
114 Seyfarth Shaw 3280 1,687 1,687
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 1,569 25,151 26,720 26,720 0 94.1%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Stacking Plan for North Tower 3 of 4
<PAGE>
Stacking Plan
CENTURY PLAZA TOWERS [LOGO]
2029 Century Park East o South Tower
<TABLE>
<CAPTION>
====================================================================================================================================
Tenant Name/ Square Feet Total Space Occupancy
Flr. No. Description Suite Vacant Occupied Floor (SF) Plan (9/96) Variance Ratio (%)
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C> <C> <C> <C> <C> <C>
1st 2 Bank Of America 100 14,190 16,422
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 0 14,190 14,190 16,422 -2,232 100.0%
- ------------------------------------------------------------------------------------------------------------------------------------
2nd 3 Bank of America 200 25,221 25,221
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 0 25,221 25,221 25,221 0 100.0%
- ------------------------------------------------------------------------------------------------------------------------------------
3rd 4 Bank of America 300 5,980 5,980
5 Vacant-Unisys (Pending) 305-V 8,937 8,937
6 Vacant 310-V 10,304 10,304
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 19,241 5,980 25,221 25,221 0 23.7%
- ------------------------------------------------------------------------------------------------------------------------------------
4th 7 NWQ Investment (Jul-97) 400 20,700
8 Vacant 405 4,521 25,221
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 4,521 20,700 25,221 25,221 0 82.1%
- ------------------------------------------------------------------------------------------------------------------------------------
5th 9 Littler Mendelson 500 25,221 25,274
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 0 25,221 25,221 25,274 -53 100.0%
- ------------------------------------------------------------------------------------------------------------------------------------
6th 10 Rosenfeld Lindsey 600 4,318 4,318
11 Littler Mendelson 810 5,384 5,425
12 Littler Mendelson (Mar-97) 620 2,216 2,216
13 Littler Mendelson (Mar-97) 630 1,400 1,400
14 Littler Mendelson (Mar-97) 640 1,585 2,471
15 Search West 650 7,170 7,170
16 Co-Counsel 690 3,076 3,076
17 Unallocated Space 699 72 0
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 72 25,149 25,221 26,076 -855 99.7%
- ------------------------------------------------------------------------------------------------------------------------------------
7th 18 Transamerica 700 7,831 7,831
19 Jerome Levine 710 4,181 4,181
20 Shahrokh 720 958 958
21 Tisdale Nicholson 755 5,495 5,495
22 Laski & Gordon 760 3,232 3,232
23 Marcus Prajogi 780 1,253 1,253
24 Transamerica 790 2,276 2,276
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 0 25,226 25,226 25,226 0 100.0%
- ------------------------------------------------------------------------------------------------------------------------------------
8th 25 McGee Willis 800-T 6,086 6,086
26 COMP USA 810 5,580 5,580
27 Vacant 820-V 746 1,392
28 Int'l Inst Business 825 1,209 1,209
29 GEMS Intl TV 830 1,157 1,157
30 Lifetime Entertainment 840 10,070 10,070
31 Unallocated Space 899 373
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 1,119 24,102 25,221 25,494 -273 95.6%
- ------------------------------------------------------------------------------------------------------------------------------------
9th 32 King Weiser 900 16,032 15,937
33 Lennar Partners 920-T 5,863 5,863
34 Thompson Trading 940 1,192 1,192
35 Berry & Callahan 950-T 2,229 2,229
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 0 25,316 25,316 25,221 95 100.0%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Stacking Plan for North Tower 1 of 5
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
Tenant Name/ Square Feet Total Space Occupancy
Flr. No. Description Suite Vacant Occupied Floor (SF) Plan (9/96) Variance Ratio (%)
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C> <C> <C> <C> <C> <C>
24th 70 Lavely & Singer 2400 12,119 12,119
71 Brenner & Glassbur 2450 1,771 1,771
72 Rubenstein/Justman 2460 5,187 5,187
73 Mahoney Coppenrath 2490 5,575 5,575
74 Mahoney (Must Take) 2490 1,206 1,206
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 0 25,858 25,858 25,858 0 100.0%
- ------------------------------------------------------------------------------------------------------------------------------------
25th 75 Kaufman & Bemstei 2500 7,722 7,722
76 Army Times Publish 2515 989 989
77 Shin Han Superior 2518 1,000 1,000
78 Noemi Pollack 2520 3,067 3,067
79 USA Network 2530 2,566 2,500
80 USA Network 2550 8,338 8,338
81 M. G. Young 2580 2,066 2,068
82 Unallocated Space 2599 283
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 283 25,748 26,031 25,748 283 98.9%
- ------------------------------------------------------------------------------------------------------------------------------------
26th 83 Century City Chamber 2610-E 2,254 0
84 Premisys (Building Mgmt) 2650-E 10,860 13,014
85 Legal Research 2660 3,611 3,611
86 Centennial Federal 2670 1,793 1,793
87 Mike Manesh 2680 1,354 1,354
88 Behr & Robinson 2690 6,114 6,114
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 0 25,986 25,986 25,886 100 100.0%
- ------------------------------------------------------------------------------------------------------------------------------------
27th 89 Joseph Blake 2700 3,119 3,119
90 Cheung Am Corp. 2710-P 3,317 3,317
91 Fujisankei 2720 3,350 3,350
92 Davis Management 2725 635 035
93 Academy of Teutsch 2730 966 986
94 Metropolitan Life 2740-E 1,123 1,123
95 Ken Linder 2750 5,040 5,040
96 Dr. Norman Sprague 2760-E 803 803
97 Vacant 2770-V 1,341 1 ,341
98 Epstein Reed 2790 6,281 6,281
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 1,341 24,634 25,975 25,975 0 94.8%
- ------------------------------------------------------------------------------------------------------------------------------------
28th 99 Century Park Inves 2800 26,207 26,207
100 Unallocated Space 2899 513
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 513 26,207 26,720 26,207 513 98.1%
- ------------------------------------------------------------------------------------------------------------------------------------
29th 100 Century Park Inves 2900 26,207 26,207
101 Unallocated Space 2999 513
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 513 26,207 26,720 26,207 513 98.1%
- ------------------------------------------------------------------------------------------------------------------------------------
30th 102 The Boston Group 3000-T 18,522 18,449
103 Prudential Insurance 3090 8,198 8,198
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 0 26,720 26,720 26,647 73 10030%
- ------------------------------------------------------------------------------------------------------------------------------------
31st 104 Lebovits & David 3100 4,576 4,576
105 Loepold Petrich 3110-T 9,840 11,304
106 Barry Fisher 3160-E 4,018 4,018
107 Kleinberg & Lange 3180 8,264 5,358
108 Unallocated Space 3199 22
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 22 26,698 26,720 25,256 1,464 99.9%
- ------------------------------------------------------------------------------------------------------------------------------------
32nd 109 Proskauer Rose (9/97) 3200
110 Weissburg & Aronso 3200+ 26,528 26,528
111 Unallocated Space 3299 192
- ------------------------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 192 26,528 26,720 26,528 192 99.3%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Stacking Plan for North Tower 3 of 5
<PAGE>
[LOGO]
Major Tenant Roster
CENTURY PLAZA TOWERS
2029 Century Park East o North Tower
<TABLE>
<CAPTION>
==========================================================================================================
Tenant Name/ Occupied Lease Dates Minimum Adjust
No. Description Suite Sqft Begin Ending Rent/PSF Date
==========================================================================================================
<S> <C> <C> <C> <C> <C> <C>
117 Foley, Lardner, Weisbur 3500 26,720 Mar-97 Feb-09 $25.80
- ----------------------------------------------------------------------------------------------------------
118 (53,440 square feet) 3600 26,720 Apr-93 Feb-09 $19.20
==========================================================================================================
133 Johnson and Higgins 4300 9,432 Jan-96 Mar-09 $14.04 Jan-96
(137,789 square net) $16.15 Jan-99
$18.57 Jan-04
- ----------------------------------------------------------------------------------------------------------
62 1400 25,157 Jan-94 Mar-09 $19.36 Jan-94
$21.23 Jan-99
$23.63 Jan-04
$27.00 Dec-05
- ----------------------------------------------------------------------------------------------------------
82 2100 25,800 Jan-94 Mar-09 $19.43 Jan-94
$21.23 Jan-99
$22.76 Jan-04
$27.00 Dec-05
- ----------------------------------------------------------------------------------------------------------
83 2200 25,800 Jan-94 Mar-09 $19.43 Jan-94
$21.23 Jan-99
$22.76 Jan-04
$27.00 Dec-05
- ----------------------------------------------------------------------------------------------------------
84 2300 25,800 Jan-94 Mar-09 $19.43 Jan-94
$21.23 Jan-99
$22.76 Jan-04
$27.00 Dec-05
- ----------------------------------------------------------------------------------------------------------
85 2400 25,800 Jan-94 Mar-09 $19.43 Jan-94
$21.23 Jan-99
$22.76 Jan-04
$27.00 Dec-05
==========================================================================================================
109 Seyfarth, Shaw, Fairweather 3210 6,957 Jan-96 Dec-10 $25.20 Jan-96
and Geraldson $27.72
- ----------------------------------------------------------------------------------------------------------
113 (44,192 square net) 3270 1,523 Jan-96 Dec-10 $25.20 Jan-96
$27.72
- ----------------------------------------------------------------------------------------------------------
114 3280 1,687 Jan-96 Dec-10 $25.20 Jan-96
$27.72
- ----------------------------------------------------------------------------------------------------------
108 3200 7,305 Jan-96 Dec-10 $25.20 Jan-96
$27.72
- ----------------------------------------------------------------------------------------------------------
115 3300 26,720 Jan-96 Dec-l0 $25.20 Jan-96
$27.72
==========================================================================================================
70 Strook & Strook & Lavan 1600 20,542 Jun-88 May-96 $25.80
- ----------------------------------------------------------------------------------------------------------
75 (46,157 square net) 1800 25,615 Jun-88 May-98 $25.80
==========================================================================================================
144 Transit Casualty 4400 19,169 Dec-94 Dec-99 $12.00
- ----------------------------------------------------------------------------------------------------------
2 (44,390 square net) 200 25,221 Dec-94 Dec-99 $19.20
==========================================================================================================
NORTH TOWER Totals (SF): 325,968 325,968 Total
==========================================================================================================
</TABLE>
Major Tenant Roster for North Tower
1 of 1
<PAGE>
[LOGO]
Rollover Exposure
CENTURY PLAZA TOWERS
2049 Century Pork East o South Tower
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
Rollover Tenant Name/ Occupied Percentage Expiry Cumulative Rollover
Year No. Description Suite Area (SF) of Building Date SQFT Percent
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 42 Prudential Securit 1300 15,085 1.3% Dec-96
44 Prudential 1350 6,935 0.6% Dec-96
43 Kutack Rock 1330-E 3,179 0.3% Dec-96
83 Century City Chamber 2610-E 2,254 0.2% Dec-96
84 Premisys (Building Mgmt) 2650-E 10,860 1.0% Dec-96
96 Dr. Nonnan Sprague 2760-E 803 0.1% Dec-96
- ----------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 39,116 3.5% 39,116 3.5%
- ----------------------------------------------------------------------------------------------------------------------
1997 106 Barry Fisher 3160-E 4,018 0.4% Jan-97
110 Weissburg & Aronso 3200+ 37,654 3.3% Feb-97
94 Metropolitan Life 2740-E 1,123 0.1% May-97
85 Legal Research 2660 3,611 0.3% Aug-97
114 Shamrock Investment 3330 3,045 0.3% Aug-97
91 Fujisankei 2720 3,350 0.3% Sep-97
131 Aetna Life Insuran 3800 26,948 2.4% Sep-97
20 Shahrokh 720 958 0.1% Oct-97
81 M. G. Young 2580 2,066 0.2% Oct-97
24 Transamerica 790 2,276 0.2% Nov-97
52 Saudi Arabian Air 2000 5,361 0.5% Nov-97
32 King Weiser 900 16,032 1.4% Dec-97
34 Thompson Trading 940 1,192 0.1% Dec-97
53 Smylie & Selman 2060 18,674 1.7% Dec-97
77 Shin Han Superior 2518 1,000 0.1% Dec-97
78 Noemi Pollack 2520 3,067 0.3% Dec-97
- ----------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 130,375 11.6% 169,491 15.0%
- ----------------------------------------------------------------------------------------------------------------------
1998 19 Jerome Levine 710 4,181 0.4% Jan-98
29 GEMS Intl TV 830 1,157 0.1% Jan-98
23 Marcus Prajogi 780 1,253 0.1% Feb-98
139 HBO 4100 26,970 2.4% Feb-98
140 HBO 4200 26,970 2.4% Feb-98
141 HBO 4300 6,717 0.6% Feb-98
147 HBO 4370 1,400 0.1% Feb-98
28 Int'l Inst Business 825 1,209 0.1% Apr-98
89 Joseph Blake 2700 3,119 0.3% May-98
10 Rosenfeld Lindsey 600 4,318 0.4% Jul-95
39 Arant Kleinberg 1080 9,336 0.8% Jul-98
125 McDonald & Company 3720 3,559 0.3% Sep-98
92 Davis Management 2725 635 0.1% Nov-98
22 Laski & Gordon 760 3,232 0.3% Dec-98
62 Tsugawa Investment 2280 1,397 0.1% Dec-98
93 Academy of Teutsch 2730 966 0.1% Dec-98
- ----------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 96,419 8.6% 265,910 23.6%
- ----------------------------------------------------------------------------------------------------------------------
1999 55 Murphy Weir 2100 18,594 1.7% Jan-99
71 Brenner & Glassbur 2450 1,771 0.2% Mar-99
87 Mike Manesh 2680 1,354 0.1% Mar-99
104 Lebovits & David 3100 4,576 0.4% Apr-99
70 Lavely & Singer 2400 12,119 1.1% Jun-91
129 KIA Intertrade 3770 2,475 0.2% Jun-99
90 Cheung Am Corp. 2710P 3,317 0.3% Jun-99
35 Berry & Callahan 950-T 2,229 0.2% Jul-99
61 Mark Rosenberg 2270 2,032 0.2% Aug-99
98 Epstein Reed 2790 6,281 0.6% Sep-99
25 McGee Willis 800-T 6,086 0.5% Sep-99
64 Comedy Partners 2295 4,824 0.4% Oct-99
76 Army Times Publish 2515 989 0.1% Oct-99
- ----------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 66,647 5.9% 332,557 29.5%
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
Stacking Plan for North Tower
1 of 3
<PAGE>
[LOGO]
Rollover Exposure
CENTURY PLAZA TOWERS
2029 Century Park East o North Tower
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
Rollover Tenant Name/ Occupied Percentage Expiry Cumulative Rollover
Year No. Description Suite Area (SF) of Building Date SQFT Percent
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1996 135 Gibson Dunn (Expired) 4330-E 2,728 0.2% Apr-96
128 Alan Goldman 3950-E 3,176 0.3% Jun-96
92 Health & Tennis (EXPIRED) 2800 0.0% Jul-96
91 Tranquest 2730-E 1,504 0.1% Nov-96
8 Envirotech 420-E 826 0.1% Dec-96
7 Jane Teis 415-E 849 0.1% Dec-96
100 DT Joint Ventura 2970-E 1,500 0.1% Dec-96
9 Brentnall Turley 422-E 1,754 0.2% Dec-96
5 World Cup USA (EXPIRED) 400 0.0% Dec-96
- ----------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 12,337 1.1% 12,337 1.1%
- ----------------------------------------------------------------------------------------------------------------------
1997 140 Poms, Smith, Lande 4390-E 2,359 0.2% Jan-97
32 Pegasus Property 880-E 1,786 0.2% Feb-97
22 Barrister Suites 600-E 25,221 2.2% Apr-97
34 Largo 920-E 6,459 0.6% Apr-97
38 JVC Entertainment 970 2,170 0.2% May-97
48 Martin & Klein 1112-E 1,997 0.2% Jun-97
57 GE Investment 1230-E 2,023 0.2% Jun-97
60 Cohen & Johnson 1300-E 17,126 1.5% Jun-97
13 Pacific Properties 448-E 1,390 0.1% Jun-97
95 Joseph Tabak 2860 3,694 0.3% Sep-97
44 Rosenstein 1080 2,692 0.2% Nov-97
49 Alsace Development 1115 1,636 0.1% Nov-97
54 L & S Advisors 1180 2,823 0.3% Nov-97
30 Kenyon Company 840 1,479 0.1% Dec-97
42 Kopple & Klinger 1040 3,426 0.3% Dec-97
90 Jack Samuels 2718 1,841 0.2% Dec-97
106 Norris Bishton 3150 4,039 0.4% Dec-97
- ----------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 82,181 7.3% 94,498 8.4%
- ----------------------------------------------------------------------------------------------------------------------
1998 50 Frederick Cook 1130 2,842 0.3% Mar-98
40 Aaron Cushman 1010 3,540 0.3% Apr-98
59 Alexander, Hallora 1260 5,392 0.5% May-98
70 Strook & Strook 1600 20,542 1.8% May-98
75 Strook & Strook 1800 25,615 2.3% May-98
79 Kagan Insurance 2010 4,651 0.4% May-98
10 Concorde Capital 430 1,338 0.1% Jun-98
58 Stan Rosenfield 1240 1,377 0.1% Jun-98
88 Shapiro Posell 2600 25,800 2.3% Jun-98
3 Deloitte & Touche 300 25,221 2.2% Aug-98
43 Federman. Grdiley 1060 5,751 0.5% Aug-98
55 Freddie MAC 1190 1,884 0.2% Aug-98
12 Paul Livadry 437 1,306 0.1% Sep-98
26 National Rx 800 6,914 0.6% Sep-98
110 Barlow & Kabata 3230 1,803 0.2% Oct-98
11 Warnerlnc 433 827 0.1% Nov-98
102 Kenneth Shellan 2990 1,425 0.1% Dec-98
112 Wyman Isaccs 3250 5,876 0.5% Dec-98
127 AMC 3945 2,124 0.2% Dec-98
- ----------------------------------------------------------------------------------------------------------------------
Sub-Total (SF): 144,228 12.8% 238,726 21.2%
- ----------------------------------------------------------------------------------------------------------------------
1999 37 Cruise Fairs 950 4,758 0.4% Jan-99
39 Paul Ray Company 1000 5,531 0.5% Jan-99
126 Hitachi 3940 2,224 0.2% Jan-99
141 Sarah Milliken 4392 919 0.1% Jan-99
45 Neumeyer & Boyd 1100 5,765 0.5% Mar-99
41 Zolla & Meyer 1020 4,296 0.4% Apr-99
125 Del Rubel 3910 8,489 0.8% Apr-99
</TABLE>
Stacking Plan for South Tower
1 of 3
<PAGE>
[LOGO]
Century City
Summary of Rental and Occupancy Survey
Competitive Office Buildings November 1996
- --------------------------------------------------------------------------------
Top Tier Second Tier Third Tier Total
TOTALS Class A class B Class B All Classes
- --------------------------------------------------------------------------------
Number of Buildings 5 11 4 20
Building Area (SF) 4,346,495 4,040,873 531,265 8,918,633
Availabilities
Direct
Square feet 196,136 674,652 72,144 942,932
Ratio 4.5% 16.7% 13.6% 10.6%
Sublease
Square feet 56,701 107,490 -- 164,191
Ratio 1.3% 2.7% 0.0% 1.8%
Overall
Square feet 252,837 782,142 72,144 1,107,123
Ratio 5.8% 19.4% 13.6% 12.4%
================================================================================
- --------------------------------------------------------------------------------
Top Tier Second Tier Third Tier Average
AVERAGES Class A Class B Class B All Classes
- --------------------------------------------------------------------------------
Stories 37 20 5 21
Building Area (SF) 869,299 367,352 132,816 456,489
Floor Area (SF) 23,243 18,536 27,961 23,247
Year Built 1,980 1,972 1,973 1,975
Availabilities
Direct (SF) 13,076 20,444 6,012 13,177
Sublease (SF) 3,780 3,257 -- 2,346
Overall (SF) 8,428 11,851 3,006 7,762
Parking Ratio/1,000 SF 1 3 3 2
Monthly Parking Rates
Unreserved $124.00 $106.00 $113.00 $114.33
Unreserved $234.00 $179.00 $181.25 $198.08
Reserved $286.00 $238.80 $150.00 $224.93
Rentable Factor 1.16 1.14 1.14 1.15
1996 Taxes / Exp PSF $ 10.50 $ 9.50 $ 11.37 $ 10.46
================================================================================
<PAGE>
CENTURY CITY
Rental and Occupancy Survey of Competitive Office Buildings
<TABLE>
<CAPTION>
Top Tier - Class "A" Buildings
==============================================================================================================================
Building Information Overall
Item Building Name / No. of Area Avg. Flr. Year Available Space (SF) Availability
No. Location Stories (SF) Area (SF) Built Floor(s) Direct Sublease (SF)
==============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
C-1 Sunamerica Center 39 774,274 19,853 1990 2 968 0
1999 Avenue of the Stars 2, 25 & 31 0 12,844 Total
---------- ------ ------
968 12,844 13,812
- ------------------------------------------------------------------------------------------------------------------------------
C-2 Fox Plaza 34 710,692 20,903 1987 Ground 4,053 0
2121 Avenue of the Stars 0 0 0 Total
---------- ------ ------
4,053 0 4,053
- ------------------------------------------------------------------------------------------------------------------------------
Subj. Century Plaza Towers - North 44 1,126,769 25,608 1975 14 - 27 0 33,683
2029 Century Park East 7, 37 - 44 41,255 0 Total
---------- ------ ------
41,255 33,683 74,938
- ------------------------------------------------------------------------------------------------------------------------------
Subj. Century Plaza Towers - South 44 1,125,888 25,588 1975 30 0 8,198
2049 Century Park East 3 - 44 62,079 0 Total
---------- ------ ------
62,079 8,198 70,277
- ------------------------------------------------------------------------------------------------------------------------------
C-3 Century City North 26 608,872 23,418 1971 9 0 1,976
10100 Santa Monica Blvd. 2 - 25 87,781 0 Total
---------- ------ ------
87,781 1,976 89,757
==============================================================================================================================
Top Tier Totals 187 4,436,495 23,243 Occupied 198,136 56,701 Vacant
-----------------
252,837
Total SF
==============================================================================================================================
<CAPTION>
November 1996
==============================================================================================================================
Quoted Occupancy Parking Monthly 1996
Item Building Name / Annual Rent Lease Ratio Ratio / Parking Rentable Taxes/
No. Location PSF PSF Type (incl. SL) 1,000 SF Rates Factor Exp PSF
==============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
C-1 Sunamerica Center $33.00 -- $36.00 FSG 98.2% 3.00 $127 1.175 $12.20
1999 Avenue of the Stars $28.80 -- $33.60 FSG $220
$286
- ------------------------------------------------------------------------------------------------------------------------------
C-2 Fox Plaza $30.00 -- $30.00 FSG 99.4% 2.75 $130 1.13 $13.00
2121 Avenue of the Stars -- -- -- -- $250
- ------------------------------------------------------------------------------------------------------------------------------
Subj. Century Plaza Towers - North $19.80 -- $24.00 FSG 93.3% 2.00 $121 1.157 $ 9.10
2029 Century Park East $21.00 -- $26.40 FSG $225
- ------------------------------------------------------------------------------------------------------------------------------
Subj. Century Palza Towers - South $22.20 -- $22.20 FSG 93.8% 2.00 $121 1.157 $ 9.10
2049 Century Park $21.00 -- $26.40 FSG $225
- ------------------------------------------------------------------------------------------------------------------------------
C-3 Century City North $21.00 -- $21.00 FSG 85.3% 2.50 $121 1.19 $ 9.10
10100 Santa Monica Blvd. $24.00 -- $30.00 FSG $250
- ------------------------------------------------------------------------------------------------------------------------------
Top Tier Totals $22.59 -- $28.13 Averages 1.23 $124 1.16 $10.50
Wtd. Avg. Rental Rate 94.2% $234
$286
</TABLE>
<TABLE>
<CAPTION>
Top Tier - Class "B" Buildings
==============================================================================================================================
Building Information Overall
Item Building Name / No. of Area Avg. Flr. Year Available Space (SF) Availability
No. Location Stories (SF) Area (SF) Built Floor(s) Direct Sublease (SF)
==============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
C-6 Northrop Plaza I 15 234,091 15,606 1970 Ground 0 0
1800 Century Park East 2, 4 & 7 13,401 0 Total
-------- ------ ------
13,401 0 13,401
- ------------------------------------------------------------------------------------------------------------------------------
C-7 Northrop Plaza II 19 290,000 15,263 1984 4, 5, 6 0 23,166
1840 Century Park East 6 & 7 14,976 0 Total
-------- ------ ------
14,976 23,166 38,142
- ------------------------------------------------------------------------------------------------------------------------------
C-8 Century Park Plaza 26 342,187 13,161 1973 Ground 9,475 0
1801 Century Park East 2 - 21 30,476 0 Total
-------- ------ ------
39,973 0 39,973
- ------------------------------------------------------------------------------------------------------------------------------
C-9 Watt Plaza - North Tower 23 412,000 17,913 1981 5 0 21,125
1875 Century Park East 3 28,757 0 Total
-------- ------ ------
28,757 21,125 49,882
- ------------------------------------------------------------------------------------------------------------------------------
C-10 Watt Plaza - South Tower 23 412,000 17,913 1982 2, 5, 22 0 30,516
1925 Century Park East 2 - 19 47,583 0 Total
-------- ------ ------
47,583 30,516 78,099
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
November 1996
==============================================================================================================================
Quoted Occupancy Parking Monthly 1996
Item Building Name / Annual Rent Lease Ratio Ratio / Parking Rentable Taxes/
No. Location PSF PSF Type (incl. SL) 1,000 SF Rates Factor Exp PSF
==============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
C-6 Northrop Plaza I -- -- -- -- 94.3% 3.00 $110 1.16 $12.20
1800 Century Park East $22.20 -- $22.80 FSG $160
- ------------------------------------------------------------------------------------------------------------------------------
C-7 Northrop Plaza II $21.60 -- $23.40 FSG 86.8% 3.00 $110 1.16 $12.00
1840 Century Park East $22.60 -- $24.00 $160
- ------------------------------------------------------------------------------------------------------------------------------
C-8 Century Park Plaza $19.20 -- $24.00 FSG 88.3% 2.00 $121 1.13 $10.83
1801 Century Park East $19.20 -- $24.00 FSG $143
$275
- ------------------------------------------------------------------------------------------------------------------------------
C-9 Watt Plaza - North Tower $19.20 -- $21.00 FSG 87.9% 3.00 $110 1.11 $7.50
1875 Century Park East $19.20 -- $25.20 FSG $198
$253
- ------------------------------------------------------------------------------------------------------------------------------
C-10 Watt Plaza - South Tower $15.00 -- $21.60 FSG 81.0% 3.00 $110 1.11 $7.50
1925 Century Park East $19.20 -- $25.20 FSG $198
$253
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
SUMMARY OF COMPARABLE OFFICE LEASES
Century City Market
<TABLE>
<CAPTION>
===================================================================================================================================
Annual PSF Rent
- -----------------------------------------------------------------------------------------------------------------------------------
Item Lease Area Expense Concessions/ Effective
No. Property Location Date Leased (SF) Term Initial Adjustments Basis Comments FSG Rent
PSF
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CC-1 Sun America
1999 Ave. of the Stars
a) 1996 3,000 36 mos. $38.00 Annual Increases FSG 4 mos. Free rent; $33.78
(Average over $15 psf TI 3 years
Term)
b) 1996 4,800 54 mos. Annual Increases FSG 8 mos. Free rent; $31.83
$37.36 $18 psf TI 5 years
(Average over
c) 1996 3,700 60 mos. Term) Annual Increases FSG 7 mos. Free rent $35.02
$20 psf TI 5 years
$39.65
d) 1996 7,200 60 mos. (Average over Annual Increases FSG 3 mos free rent; $39.92
Term) $5 psf TI 5 years
e) 1996 1,900 36 mos. $43.55 Annual 4% FSG 3 mos free rent; $36.84
(Average over $5 psf TI 3 years
Term)
f) 1995 8,000 60 mos. Annual 4% FSG 10 mos. free rent; $33.96
$35.40 $18 psf TI 5 years
g) 1995 5,000 60 mos. Annual 4% FSG 11 mos. free rent $33.96
$36.00 $20 psf TI 5 years
h) 1995 1,300 60 mos. Annual 4% FSG None free $39.00
$35.40 $10 psf TI 5 years
$36.00
- -----------------------------------------------------------------------------------------------------------------------------------
CC-2 Northrop Plaza
1800 Century Park East
1840 Century Park East
a) 1996 8,000 72 mos. $21.12 Flat FSG None free; $21.60
$30 psf TI 6 years
b) 1996 2,800 60 mos. $20.40 Flat FSG None free; $20.40
$5.50 psf TI 5 years
c) 1996 16,000 66 mos. $21.00 Flat FSG None free; $21.00
===================================================================================================================================
</TABLE>
======================
- ----------------------
Item Effective Rent
No. Adjusted for
TIs
- ----------------------
CC-1
$28.78
$28.23
$31.02
$38.92
$35.17
$30.36
$29.96
$37.00
- ----------------------
CC-2
$16.60
$19.30
$15.91
======================
<PAGE>
<TABLE>
<CAPTION>
===================================================================================================================================
Annual PSF Rent
- -----------------------------------------------------------------------------------------------------------------------------------
Item Lease Area Expense Concessions/ Effective
No. Property Location Date Leased (SF) Term Initial Adjustments Basis Comments FSG Rent
PSF
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
f) 1996 2,800 47 mos. $17.16 Flat FSG 1 month free rent; $16.79
No TI 4 years
g) 1996 2,000 36 mos. $19.44 Flat FSG None $19.44
3 years
h) 1995 3,000 60 mos. $20.76 Flat FSG 1 mo. free rent $20.41
$15 psf TI 5 years
i) 1995 3,500 36 mos. $12.00 Mos. 7-36 FSG $2.50 psf TI $19.00
$20.40 3 years
- -----------------------------------------------------------------------------------------------------------------------------------
CC-4 1880 Century Park East
a) 1996 30,000 120 mos. $22.20 Flat FSG None free; $22.20
$42 psf TI 10 years
b) 1996 10,000 60 mos. $21.00 Flat FSG None free; $21.00
$35 psf TI 5 years
c) 1996 37,000 120 mos. $24.60 Avg. over term FSG None free; $24.60
$47 psf TI
d) 1996 21,000 120 mos. $25.56 Avg. over term FSG None free;
$70 psf TI
e) 1996 4,000 60 mos. $21.00 Flat FSG $33 psf TI
- -----------------------------------------------------------------------------------------------------------------------------------
CC-5 10100 Santa Monica
Blvd. 1995 23,000 30 mos. $18.00 Flat FSG None $18.00
(tenant paid
commission)
- -----------------------------------------------------------------------------------------------------------------------------------
CC-6 1888 Century Park East
a) 1996 24,300 120 mos. $19.80 Yr. 6: $23.40 FSG None free; $21.60
$20 psf TI 10 years
b) 1996 14,900 48 mos. $19.80 Flat FSG None free; $19.80
$15 psf TI 4 years
c) 1996 85,000 72 mos. $18.00 Effective rate FSG None free; $18.00
$5 psf TI 6 years
- -----------------------------------------------------------------------------------------------------------------------------------
CC-7 Century Park Plaza
1801 Century Park East
a) 1996 2,900 63 mos. $23.40 Flat FSG 3 mos. free rent; $22.29
$20 psf TI 5 years
b) 1996 5,200 84 mos. $22.29 Flat FSG None free; $22.29
$10 psf TI 7 years
===================================================================================================================================
</TABLE>
=====================
- ---------------------
Item
No.
- ---------------------
$16.79
$19.44
$17.41
$18.17
- ---------------------
CC-4
$18.00
$14.00
$19.90
$18.56
$14.40
- ---------------------
CC-5
$18.00
- ---------------------
CC-6
$19.60
$16.05
$17.17
- ---------------------
CC-7
$18.29
$20.86
=====================
<PAGE>
SUMMARY OF RECENT SUBJECT LEASES
Century Plaza Towers
<TABLE>
<CAPTION>
====================================================================================================================================
Annual PSF Rent (FSG)
- ------------------------------------------------------------------------------------------------------------------------------------
Item Tenant Date Signed/ Area Floor(s) Tower Term Initial Adjustments Concessions/
Commence Leased (SF) (mos) Comments
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
S-1 Unisys 10/96 8,937 3 South 60 $22.80 Flat $21.60 prsf TI
1/97
- ------------------------------------------------------------------------------------------------------------------------------------
S-2 Littler, Mendelson, et al 6/96 35,806 5 South 132 $27.84 Yr. 6: $29.40 12 months free rent;
11/96 $60 prsf TI
- ------------------------------------------------------------------------------------------------------------------------------------
S-3 Wasser, Rosenson, et al 10/96 8,407 12 North 60 $24.00 Flat $17.28 prsf TI
10/96
- ------------------------------------------------------------------------------------------------------------------------------------
S-4 Mannis & Phillips N/A 4,677 12 North 60 $24.00 Flat $17.28 prsf TI
10/96
- ------------------------------------------------------------------------------------------------------------------------------------
S-5 Sources Services 10/96 8,091 13 North 60 $22.80 Flat $16.65 prsf TI
1/97
- ------------------------------------------------------------------------------------------------------------------------------------
S-6 Kessler 7/96 3,657 15 North 60 $24.60 Flat 1 month free rent;
9/96 $17.28 prsf TI
- ------------------------------------------------------------------------------------------------------------------------------------
S-7 Sitrick & Co. N/A 1,526 17 North 84 $24.60 Flat $9.00 prsf TI
12/96
- ------------------------------------------------------------------------------------------------------------------------------------
S-8 Queensland Trade 8/96 2,444 21 South 60 $27.00 Flat $30.00 prsf TI
8/96
- ------------------------------------------------------------------------------------------------------------------------------------
S-9 Gems Television N/A 2,557 22 South 60 $25.20 Flat $10 prsf TI
10/96
- ------------------------------------------------------------------------------------------------------------------------------------
S-10 Mahoney et al 8/96 6,781 24 South 96 $27.00 Flat 3 months free rent;
11/96 $39.61 prsf TI
- ------------------------------------------------------------------------------------------------------------------------------------
S-11 JVC/Largo 10/96 11,156 25 North 60 $25.80 Flat $17.28 prsf TI
1/97
- ------------------------------------------------------------------------------------------------------------------------------------
S-12 Merrill Lynch N/A 18,877 28 North 120 $26.16 Flat $50.00 prsf TI
7/97
- ------------------------------------------------------------------------------------------------------------------------------------
S-13 Murphy Marsailles 9/96 8,481 31 North 97 $26.40 Flat 1.5 months free rent;
12/96 $30.24 prsf TI
- ------------------------------------------------------------------------------------------------------------------------------------
S-14 Proskauer, et al N/A 36,169 32,33 South 120 $27.00 Flat $51.50 prsf TI
9/97 Cancel
Rights @ 84
- ------------------------------------------------------------------------------------------------------------------------------------
S-15 Seyfarth, Shaw, et al 6/96 44,192 33 North 180 $25.20 Yr. 11: $27.72 $21.00 prsf TI
1/97
- ------------------------------------------------------------------------------------------------------------------------------------
S-16 Foley & Larcner 6/96 53,440 35 North 144 $25.80 Flat $50.00 prsf TI
3/97
- ------------------------------------------------------------------------------------------------------------------------------------
S-17 Hok Tak Int. 6/96 1,695 37 South 120 $24.00 Flat $19.42 prsf TI
2/97
- ------------------------------------------------------------------------------------------------------------------------------------
S-18 Career Images N/A 1,599 37 South 60 $28.92 Flat $13.41 prsf TI
11/97
- ------------------------------------------------------------------------------------------------------------------------------------
S-19 California Com. Bank 6/96 37,431 42 North 132 $26.52 Flat $45.44 prsf TI
2/97
====================================================================================================================================
</TABLE>
==========================================
- ------------------------------------------
Item Effective Rent Effective Rent
PSF Adjusted for TI's
==========================================
S-1 $22.80 $18.48
5 years
- ------------------------------------------
S-2 $26.16 $20.71
11 years
- ------------------------------------------
S-3 $24.00 $20.54
5 years
- ------------------------------------------
S-4 $24.00 $20.54
5 years
- ------------------------------------------
S-5 $22.80 $19.47
5 years
- ------------------------------------------
S-6 $24.19 $20.73
5 years
- ------------------------------------------
S-7 $24.60 $23.31
7 years
- ------------------------------------------
S-8 $27.00 $21.00
5 years
- ------------------------------------------
S-9 $25.20 $23.20
5 years
- ------------------------------------------
S-10 $26.16 $21.21
8 years
- ------------------------------------------
S-11 $25.80 $22.34
5 years
- ------------------------------------------
S-12 $26.16 $21.16
10 years
- ------------------------------------------
S-13 $25.99 $22.21
8 years
- ------------------------------------------
S-14 $27.00 $21.85
10 years
- ------------------------------------------
S-15 $26.04 $24.64
15 years
- ------------------------------------------
S-16 $25.80 $21.63
12 Years
- ------------------------------------------
S-17 $24.00 $22.06
12 years
- ------------------------------------------
S-18 $28.92 $26.24
5 years
- ------------------------------------------
S-19 $26.52 $22.39
11 years
==========================================
<PAGE>
Parking Statements
[LOGO: CENTURY PLAZA TOWERS] CENTURY PLAZA TOWERS
2029 and 2049 Century Park East o Century City, CA
Total NRA (SF) 2,282,381
<TABLE>
<CAPTION>
==============================================================================================================================
1991 PSF 1992 PSF 1993 PSF 1994 PSF
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Revenue
Monthly Parking $7,356,975 $3.22 $6,838,514 $3.00 $6,462,246 $2.83 $6,740,058 $2.95
Validations - Carriage - - - - - - $31,818 $0.01
Validations $1,502,707 $0.66 $1,594,380 $0.70 $1,518,954 $0.67 $1,438,658 $0.63
Daily Parking - Carriage - - - - - - $135,686 $0.06
Daily Parking $1,918,502 $0.84 $1,577,579 $0.69 $1,594,274 $0.70 $1,943,616 $0.85
Interest Income $7,028 $0.00 $5,511 $0.00 $3,697 $0.00 $4,168 $0.00
- ------------------------------------------------------------------------------------------------------------------------------
Total Revenue $10,785,212 $4.73 $10,015,983 $4.39 $9,579,171 $4.20 $10,294,005 $4.51
- ------------------------------------------------------------------------------------------------------------------------------
Total Expenses $2,163,000 $0.95 $1,970,341 $0.86 $1,981,970 $0.87 $2,152,967 $0.94
==============================================================================================================================
Net Operating Income $8,622,212 $3.78 $8,045,643 $3.53 $7,597,201 $3.33 $8,141,038 $3.57
==============================================================================================================================
==============================================================================================================================
<CAPTION>
==============================================================================================================================
1996 YTD Annualized Budget
1995 PSF (Jan-Jun) PSF 1996 PSF 1996 PSF
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Revenue
Monthly Parking $6,493,819 $2.85 $3,368,170 $1.48 $6,736,340 $2.95 $6,951,000 $3.05
Validations - Carriage $41,787 $0.02 $38,173 $0.02 $76,346 $0.03 $70,500 $0.03
Validations $887,566 $0.39 $872,366 $0.38 $1,744,732 $0.76 $1,634,700 $0.72
Daily Parking - Carriage $200,705 $0.09 $111,444 $0.05 $222,888 $0.10 $207,800 $0.09
Daily Parking $1,702,465 $0.75 $947,358 $0.42 $1,894,716 $0.83 $1,644,700 $0.72
Interest Income $5,142 $0.00 $3,081 $0.00 $6,162 $0.00 $4,900 $0.00
- ------------------------------------------------------------------------------------------------------------------------------
Total Revenue $9,331,484 $4.09 $5,340,592 $234 $10,681,184 $4.68 $10,513,600 $4.61
- ------------------------------------------------------------------------------------------------------------------------------
Total Expenses $2,062,088 $0.90 $1,091,903 $0.48 $2,183,806 $0.96 $2,194,972 $0.96
==============================================================================================================================
Net Operating Income $7,269,396 $3.19 $4,248,689 $1.86 $8,497,378 $3.72 $8,318,628 $3.64
==============================================================================================================================
==============================================================================================================================
</TABLE>
Income & Expense Trends
[GRAPHIC OMITTED]
[Line chart depicting Income & Expense Trends]
Net Operating Income
[GRAPHIC OMITTED]
[Bar chart depicting Net Operating Income]
<PAGE>
1994 Income & Expense Statements
[LOGO] CENTURY PLAZA TOWERS
2029 and 2049 Century Park East - Century City, CA
Total NRA (SF) 2,282,361
<TABLE>
<CAPTION>
===================================================================================================================
1,125,888 SF 1,128,789 SF
North Tower PSF (%) South Tower PSF (%) ABC Entertn (%)
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Gross income
Rent Office, Apt, Indust. $20,367,738 $18.09 49.7% $20,153,752 $17.89 49.1% $480,000 1.2%
Rent Commercial $3,422 $0.00 0.2% $0 $0.00 0.0% $932,977 60.2%
Temporary Tenant Rent $0 $0.00 0.0% ($6,165) ($0.01) 100.0% $0 0.0%
Rent Percentage $0 $0.00 0.0% $0 $0.00 0.0% $0 0.0%
Rent Parking / Garage $0 $0.00 0.0% $37,800 $0.03 0.4% $0 0.0%
Rent Storage $186,392 $0.17 56.8% $134,035 $0.12 40.8% $0 0.0%
Marketing Fund Revenue ($390) ($0.00) -2.8% $14,375 $0.01 102.8% $0 0.0%
Rent Rev (Free Rent) $860,526 $0.76 28.7% $2,159,760 $1.92 71.9% $0 0.0%
Recovery of Expenses $781,938 $0.69 47.8% $823,991 $0.73 50.3% $0 0.0%
Rent Net Lease Taxes $4,485 $0.00 0.9% $12,116 $0.01 2.4% $486,272 95.2%
Misc. Tenant Charges $436,268 $0.39 47.5% $397,682 $0.35 43.3% $0 0.0%
Misc. Income $52,973 $0.05 14.0% $277,056 $0.25 73.4% $5,398 1.4%
Interest Income $350,849 $0.31 51.9% $325,130 $0.29 48.1% $0 0.0%
Blanket Insur. Proceeds $867 $0.00 50.0% $867 $0.00 50.0% $0 0.0%
- -------------------------------------------------------------------------------------------------------------------
Total Revenue $23,045,068 $20.47 38.0% $24,330,399 $21.59 40.1% $1,904,647 3.1%
Operating Expenses
Cleaning $1,245,879 $1.11 50.6% $1,180,908 $1.05 48.0% $0 0.0%
Utilities $3,444,261 $3.06 45.6% $2,946,907 $2.62 39.1% $0 0.0%
Repairs & Maintenance $1,836,791 $1.63 48.1% $1,743,365 $1.55 45.7% $2,463 0.1%
General Building $606,911 $0.54 14.6% $599,171 $0.53 14.4% $25 0.0%
Administrative $731,823 $0.65 32.9% $1,115,034 $0.99 50.1% $269,082 12.1%
Management Fee $548,554 $0.49 37.2% $551,568 $0.49 37.4% $46,826 3.2%
Property Insurance $660,878 $0.59 45.3% $660,878 $0.59 45.3% $2,984 0.2%
Real Estate Taxes $813,185 $0.72 27.1% $811,825 $0.72 27.1% $486,272 16.2%
Other $40,403 $0.04 26.6% $41,349 $0.04 27.2% $3,342 2.2%
- -------------------------------------------------------------------------------------------------------------------
Total Expenses $9,928,685 $8.82 37.7% $9,651,005 $8.57 36.7% $810,994 3.1%
===================================================================================================================
Net Operating Income $13,116,383 $11.65 38.2% $14,679,394 $13.03 42.8% $1,093,653 3.2%
===================================================================================================================
Deductions
Interest on Encumbrances $0 $0.00 0.0% $21,938,423 $19.47 66.8% $0 0.0%
Depreciation Expense $21,836,647 $19.40 -168.8% $3,744,361 $3.32 -28.9% $4,895,958 -37.9%
Amort. Tenant Alterations $2,194,543 $1.95 71.4% $808,917 $0.72 26.3% $0 0.0%
Amort. Leasing Commissions $868,036 $0.77 97.5% $0 $0.00 0.0% $0 0.0%
Other Amortization ($1,832) ($0.00) 26.5% ($5,054) ($0.00) 73.0% $0 0.0%
Amort. Mortg. Discount $0 $0.00 0.0% 50 $0.00 0.0% $0 0.0%
- -------------------------------------------------------------------------------------------------------------------
Total Deductions $24,897,394 $22.11 104.0% $26,486,647 $23.51 110.6% $4,895,958 20.4%
===================================================================================================================
Net Cash Flow ($11,781,011) ($10.46) -113.6% ($11,807,253)($10.48) -113.9% ($3,802,305) -36.7%
===================================================================================================================
</TABLE>
===============================================================================
29,724 SF
B-Level PSF (%) Garage (%)
- -------------------------------------------------------------------------------
Gross income
Rent Office, Apt, Indust. $7,998 $0.27 0.0% $0 0.0%
Rent Commercial $613,797 $20.65 39.6% $0 0.0%
Temporary Tenant Rent $0 $0.00 0.0% $0 0.0%
Rent Percentage $45,526 $1.53 99.9% $0 0.0%
Rent Parking / Garage $0 $0.00 0.0% $10,128,115 96.1%
Rent Storage $7,836 $0.26 2.4% 50 0.0%
Marketing Fund Revenue $0 $0.00 0.0% $0 0.0%
Rent Rev (Free Rent) ($16,804) ($0.57) -0.6% $0 0.0%
Recovery of Expenses $31,229 $1.05 1.9% $0 0.0%
Rent Net Lease Taxes $7,782 $0.26 1.5% $0 0.0%
Misc. Tenant Charges $65,455 $2.20 7.1% $0 0.0%
Misc. Income $3,613 $0.12 1.0% $2,202 0.6%
Interest Income $0 $0.00 0.0% $0 0.0%
Blanket Insur. Proceeds $0 $0.00 0.0% $0 0.0%
- -------------------------------------------------------------------------------
Total Revenue $766,432 $25.78 1.3% $10,130,317 16.7%
Operating Expenses
Cleaning $14,635 $0.49 0.6% $20,882 0.8%
Utilities $212,558 $7.15 2.8% $942,322 12.5%
Repairs & Maintenance $50,207 $1.69 1.3% $166,386 4.4%
General Building $213,964 $7.20 5.1% $2,746,578 65.9%
Administrative $92,726 $3.12 4.2% $27,875 1.3%
Management Fee $17,740 $0.60 1.2% $296,517 20.2%
Property Insurance $40,756 $1.37 2.8% $92,524 6.3%
Real Estate Taxes $49,002 $1.65 1.6% $839,474 28.0%
Other $1,059 $0.04 0.7% $65,883 43.3%
- -------------------------------------------------------------------------------
Total Expenses $692,647 $23.30 2.6% $5,200,441 19.8%
===============================================================================
Net Operating Income $73,785 $2.48 0.2% $4,929,876 14.4%
===============================================================================
Deductions
Interest on Encumbrances $0 $0.00 0.0% $0 0.0%
Depreciation Expense $512,586 $17.24 -4.0% $26,587,455 -205.5%
Amort. Tenant Alterations $52,407 $1.76 1.7% $15,949 0.5%
Amort. Leasing Commissions $20,594 $0.69 2.3% $1,642 0.2%
Other Amortization $0 $0.00 0.0% ($38) 0.5%
Amort. Mortg. Discount $0 $0.00 0.0% $0 0.0%
- -------------------------------------------------------------------------------
Total Deductions $585,587 $19.70 2.4% $26,605,008 111.1%
===============================================================================
Net Cash Flow ($511,802) ($17.22) -4.9% ($21,675,132) -209.1%
===============================================================================
================================================================================
<PAGE>
1993 Income & Expense Statements
[LOGO] CENTURY PLAZA TOWERS
2029 and 2049 Century Park East - Century City, CA
Total NRA (SF) 2,282,381
<TABLE>
<CAPTION>
===================================================================================================================
1,125,888 SF 1,126,769 SF
North Tower PSF (%) South Tower PSF (%) ABC Entertn (%)
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Gross income
Rent Office, Apt, Indust. $21,095,345 $18.74 49.7% $20,960,064 $18.60 49.4% $360,000 0.8%
Rent Commercial $5,258 $0.00 0.7% $0 $0.00 0.0% $120,000 17.0%
Temporary Tenant Rent $17,450 $0.02 27.7% $6,165 $0.01 9.8% $0 0.0%
Rent Percentage $0 $0.00 0.0% $0 $0.00 0.0% $877,934 100.0%
Rent Parking / Garage $13,980 $0.01 0.1% $37,800 $0.03 0.4% $0 0.0%
Rent Storage $195,610 $0.17 26.0% $182,459 $0.16 24.2% $0 0.0%
Marketing Fund Revenue $0 $0.00 0.0% $1,200 $0.00 100.0% $0 0.0%
Rent Rev (Free Rent) $952,279 $0.85 363.5% ($700,670) ($0.62) -267.5% $0 0.0%
Recovery of Expenses $1,282,753 $1.14 47.0% $942,509 $0.84 34.5% $469,556 17.2%
Rent Net Lease Taxes $0 $0.00 #DIV/0! $0 $0.00 #DIV/0! $0 #DIV/0!
Misc. Tenant Charges $486,558 $0.43 53.4% $339,514 $0.30 37.3% $0 0.0%
Misc. Income $754,587 $0.67 66.3% $167,861 $0.15 14.7% $1,256 0.1%
Interest Income $116,383 $0.10 36.0% $143,900 $0.13 44.5% ($353) -0.1%
Blanket Insur. Proceeds $110,058 $0.10 100.0% $0 $0.00 0.0% $0 0.0%
- -------------------------------------------------------------------------------------------------------------------
Total Revenue $25,030,261 $22.23 41.7% $22,080,802 $19.60 36.7% $1,828,393 3.0%
Operating Expenses
Cleaning $1,183,570 $1.05 47.4% $1,291,810 $1.15 51.7% $0 0.0%
Utilities $3,427,145 $3.04 45.5% $3,038,748 $2.70 40.4% $4,334 0.1%
Repairs & Maintenance $1,667,696 $1.48 46.6% $1,823,328 $1.62 51.0% $3,576 0.1%
General Building $551,047 $0.49 14.7% $561,418 $0.50 15.0% $619 0.0%
Administrative $1,088,584 $0.97 54.1% $348,227 $0.31 17.2% $522,118 26.0%
Management Fee $687,788 $0.61 47.4% $688,023 $0.61 47.4% $48,556 3.3%
Property Insurance $340,024 $0.30 38.8% $357,384 $0.32 40.8% $0 0.0%
Real Estate Taxes $782,885 $0.70 27.1% $778,191 $0.69 26.9% $469,556 16.2%
Other $47,048 $0.04 28.6% $45,516 $0.04 27.6% $3,013 1.8%
- -------------------------------------------------------------------------------------------------------------------
Total Expenses $9,775,787 $8.68 39.5% $8,930,645 $7.93 36.1% $1,051,772 4.3%
===================================================================================================================
Net Operating Income $18,254,474 $13.55 43.2% $13,150,157 $11.67 37.2% $776,621 2.2%
===================================================================================================================
Deductions
Interest on Encumbrances $7,136 $0.01 0.1% $0 $0.00 0.0% $0 0.0%
Depreciation Expense $4,485 $0.00 0.1% $17,145 $0.02 0.2% $0 0.0%
Amort. Tenant Alterations $2,616,502 $2.32 70.7% $1,040,269 $0.92 28.1% $0 0.0%
Amort. Leasing Commissions $483,642 $0.43 63.5% $258,019 $0.23 33.9% $0 0.0%
Other Amortization $1,832 $0.00 26.5% $5,054 $0.00 73.0% $0 0.0%
Amort. Mortg. Discount $0 $0.00 0.0% $0 $0.00 0.0% $0 0.0%
- -------------------------------------------------------------------------------------------------------------------
Total Deductions $3,113,597 $2.77 13.7% $1,320,487 $1.17 5.8% $0 0.0%
===================================================================================================================
Net Cash Flow $12,140,877 $10.78 96.1% $11,829,670 $10.50 93.6% $776,621 6.1%
===================================================================================================================
</TABLE>
===============================================================================
29,724 SF
B-Level PSF (%) Garage (%)
- -------------------------------------------------------------------------------
Gross income
Rent Office, Apt, Indust. ($11,482) ($0.39) 0.0% $0 0.0%
Rent Commercial $582,164 $19.59 82.3% $0 0.0%
Temporary Tenant Rent $39,294 $1.32 62.5% $0 0.0%
Rent Percentage $0 $0.00 0.0% $0 0.0%
Rent Parking / Garage $0 $0.00 0.0% $9,748,758 99.5%
Rent Storage $6,046 $0.20 0.8% $0 0.0%
Marketing Fund Revenue $0 $0.00 0.0% $0 0.0%
Rent Rev (Free Rent) $10,343 $0.35 3.9% $0 0.0%
Recovery of Expenses $35,835 $1.21 1.3% $0 0.0%
Rent Net Lease Taxes $0 $0.00 #DIV/0! $0 #DIV/0!
Misc. Tenant Charges $64,953 $2.19 7.1% $0 0.0%
Misc. Income $2,503 $0.08 0.2% $370 0.0%
Interest Income $0 $0.00 0.0% $0 0.0%
Blanket Insur. Proceeds $0 $0.00 0.0% $0 0.0%
- --------------------------------------------------------------------------------
Total Revenue $729,656 $24.55 1.2% $9,749,126 16.2%
Operating Expenses
Cleaning $62,021 $2.09 2.5% $50,620 2.0%
Utilities $212,133 $7.14 2.8% $644,352 11.2%
Repairs & Maintenance $90,610 $3.05 2.5% $128,730 3.6%
General Building $235,006 $7.91 6.3% $2,464,089 65.7%
Administrative $27,591 $0.93 1.4% $44,897 2.2%
Management Fee $20,095 $0.68 1.4% $268,375 18.5%
Property Insurance $0 $0.00 0.0% $178,516 20.4%
Real Estate Taxes $46,844 $1.58 1.6% $812,337 20.1%
Other $865 $0.03 0.5% $67,974 41.3%
- --------------------------------------------------------------------------------
Total Expenses $695,165 $23.39 2.8% $4,859,890 19.6%
===============================================================================
Net Operating Income $34,491 $1.16 0.1% $4,889,236 13.8%
===============================================================================
Deductions
Interest on Encumbrances $0 $0.00 0.0% $0 0.0%
Depreciation Expense $5,507 $0.19 0.1% $1,651 0.0%
Amort. Tenant Alterations $39,551 $1.33 1.1% $3,467 0.1%
Amort. Leasing Commissions $20,029 $0.67 2.6% $374 0.0%
Other Amortization $0 $0.00 0.0% $38 0.5%
Amort. Mortg. Discount $0 $0.00 0.0% $0 0.0%
- -------------------------------------------------------------------------------
Total Deductions $65,087 $2.19 0.3% $5,530 0.0%
===============================================================================
Net Cash Flow ($30,596) ($1.03) -0.2% $4,883,706 38.6%
===============================================================================
================================================================================
<PAGE>
Consolidated Income & Expense Statements 1993 - 1997 Budget
CENTURY PLAZA TOWERS [LOGO Century Plaza Towers]
2029 and 2049 Century Park East o Century City, CA
<TABLE>
<CAPTION>
===============================================================================================================
1993 PSF 1994 PSF 1995 PSF
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Gross income
Rent Office, Apt, Indust. $42,411,374 $18.58 $41,020,266 $17.97 $43,699,133 $19.15
Rent Commercial $707,422 $0.31 $1,550,196 $0.68 $592,445 $0.26
Temporary Tenant Rent $62,909 $0.03 ($6,165) ($0.00) $0 $0.00
Rent Percentage $878,140 $0.38 $45,566 $0.02 $1,104,532 $0.48
Rent Parking/Garage $9,800,536 $4.29 $10,541,647 $4.62 $10,014,278 $4.39
Rent Storage $752,437 $0.33 $328,263 $0.14 $725,169 $0.32
Marketing Fund Revenue $1,200 $0.00 $13,985 $0.01 $0 $0.00
Rent Rev (Free Rent) $261,952 $0.11 $3,003,482 $1.32 $511,917 $0.22
Recovery of Expenses $2,729,338 $1.20 $1,637,158 $0.72 $2,146,490 $0.94
Rent Net Lease Taxes $0 $0.00 $510,655 $0.22 $525,694 $0.23
Misc. Tenant Charges $910,825 $0.40 $919,213 $0.40 $784,188 $0.34
Misc. Income $1,138,958 $0.50 $377,572 $0.17 $640,609 $0.28
Interest Income $323,163 $0.14 $675,979 $0.30 $930,646 $0.41
Blanket Insur. Proceeds $110,058 $0.05 $1,734 $0.00 $145,000 $0.06
- ---------------------------------------------------------------------------------------------------------------
Total Revenue $60,088,312 $26.33 $60,619,551 $26.56 $61,820,101 $27.09
Operating Expenses
Cleaning $2,499,352 $1.10 $2,462,618 $1.08 $2,459,905 $1.08
Utilities $7,526,712 $3.30 $7,546,048 $3.31 $7,140,903 $3.13
Repairs & Maintenance $3,578,491 $1.57 $3,815,233 $1.67 $3,100,066 $1.36
General Building $3,749,714 $1.64 $4,166,649 $1.83 $4,221,748 $1.85
Administrative $2,011,157 $0.88 $2,226,942 $0.98 $1,464,360 $0.64
Management Fee $1,451,566 $0.64 $1,474,663 $0.65 $1,438,079 $0.63
Property Insurance $875,924 $0.38 $1,458,020 $0.64 $2,437,847 $1.07
Real Estate Taxes $2,889,813 $1.27 $2,999,758 $1.31 $3,072,789 $1.35
Other $164,698 $0.07 $152,036 $0.07 $141,815 $0.06
- ---------------------------------------------------------------------------------------------------------------
Total Expenses $24,747,427 $10.84 $26,301,967 $11.52 $25,477,512 $11.16
===============================================================================================================
Net Operating Income $35,340,885 $15.48 $34,317,584 $15.04 $36,342,589 $15.92
===============================================================================================================
Deductions
Interest on Encumbrances $9,956,849 $4.36 $10,920,367 $4.78 $10,717,862 $4.70
Depreciation Expense $8,206,387 $3.60 $5,258,940 $2.30 $5,041,885 $2.21
Amort. Tenant Alterations $3,699,789 $1.62 $6,007,260 $2.63 $4,304,536 $1.89
Amort. Leasing Commissions $762,064 $0.33 $1,699,188 $0.74 $1,526,376 $0.67
Other Amortization $6,924 $0.00 ($6,924) ($0.00) $67,923 $0.03
Amort. Mortg. Discount $71,806 $0.03 $71,806 $0.03 $71,806 $0.03
- ---------------------------------------------------------------------------------------------------------------
Total Deductions $22,703,819 $9.95 $23,950,637 $10.49 $21,730,388 $9.52
===============================================================================================================
Net Cash Flow $12,637,066 $5.54 $10,366,947 $4.54 $14,612,201 $6.40
===============================================================================================================
<CAPTION>
===============================================================================================================
Annualized Budget
1996 YTD PSF 1996 PSF 1997 PSF
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Gross income
Rent Office, Apt, Indust.
Rent Commercial
Temporary Tenant Rent
Rent Percentage
Rent Parking/Garage
Rent Storage
Marketing Fund Revenue See 1996 YTD See 1996 YTD See 1997 Budget
Rent Rev (Free Rent) Exhibit Exhibit Exhibit
Recovery of Expenses
Rent Net Lease Taxes
Misc. Tenant Charges
Misc. Income
Interest Income
Blanket Insur. Proceeds
- ---------------------------------------------------------------------------------------------------------------
Total Revenue $0 $0.00 $0 $0.00 $0 $0.00
Operating Expenses
Cleaning
Utilities
Repairs & Maintenance
General Building See 1996 YTD See 1996 YTD See 1997 Budget
Administrative Exhibit Exhibit Exhibit
Management Fee
Property Insurance
Real Estate Taxes
Other
- ---------------------------------------------------------------------------------------------------------------
Total Expenses $0 $0.00 $0 $0.00 $0 $0.00
===============================================================================================================
Net Operating Income $0 $0.00 $0 $0.00 $0 $0.00
===============================================================================================================
Deductions
Interest on Encumbrances
Depreciation Expense
Amort. Tenant Alterations See 1996 YTD See 1996 YTD See 1997 Budget
Amort. Leasing Commissions Exhibit Exhibit Exhibit
Other Amortization
Amort. Mortg. Discount
Total Deductions $0 $0.00 $0 $0.00 $0 $0.00
===============================================================================================================
Net Cash Flow $0 $0.00 $0 $0.00 $0 $0.00
===============================================================================================================
</TABLE>
<PAGE>
1995 Income & Expense Statements
[LOGO] CENTURY PLAZA TOWERS
2029 and 2049 Century Park East o Century City, CA
Total NRA (SF) 2,282,381
<TABLE>
<CAPTION>
==================================================================================================================================
1,125,888 SF 1,126,769 SF
North Tower PSF (%) South Tower PSF (%) ABC Entertn (%)
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Gross income
Rent Office, Apt, Indust. $22,700,932 $20.16 51.9% $20,496,487 $18.19 46.9% $480,000 1.1%
Rent Commercial $0 $0.00 0.0% $0 $0.00 0.0% $0 0.0%
Temporary Tenant Rent $0 $0.00 #DlV/0! $0 $0.00 #DIV/0! $0 #DIV/0!
Rent Percentage $0 $0.00 0.0% $0 $0.00 0.0% $1,071,754 97.0%
Rent Parking Garage $0 $0.00 0.0% $37,800 $0.03 0.4% $0 0.0%
Rent Storage $194,871 $0.17 26.9% $162,696 $0.14 22.4% $0 0.0%
Marketing Fund Revenue $0 $0.00 #DIV/0! $0 $0.00 #DIV/0! $0 #DIV/0!
Rent Rev (Free Rent) ($321,693) ($0.29) -62.8% $829,481 $0.74 162.0% $0 0.0%
Recovery of Expenses $1,159,960 $1.03 54.0% $952,098 $0.84 44.4% $0 0.0%
Rent Net Lease Taxes $4,605 $0.00 0.9% $15,067 $0.01 2.9% $498,024 94.7%
Misc. Tenant Charges $340,204 $0.30 43.4% $357,701 $0.32 45.6% $743 0.1%
Misc. Income $173,842 $0.15 27.1% $415,951 $0.37 64.9% $0 0.0%
Interest Income $414,617 $0.37 44.6% $442,608 $0.39 47.6% $73,421 7.9%
Blanket Insur. Proceeds $72,500 $0.06 50.0% $72,500 $0.06 50.0% $0 0.0%
- ----------------------------------------------------------------------------------------------------------------------------------
Total Revenue $24,739,838 $21.97 40.0% $23,782,389 $21.11 38.5% $2,123,942 3.4%
Operating Expenses
Cleaning $1,260,380 $1.12 51.2% $1,166,455 $1.04 47.4% $0 0.0%
Utilities $3,259,226 $2.89 45.6% $2,880,405 $2.56 40.3% $0 0.0%
Repairs & Maintenance $1,486,683 $1.32 48.0% $1,462,026 $1.30 47.2% ($1,249) 0.0%
General Building $714,780 $0.63 16.9% $715,187 $0.63 16.9% $0 0.0%
Administrative $591,499 $0.53 40.4% $742,329 $0.66 50.7% ($239,506) -16.4%
Management Fee $616,426 $0.55 42.9% $560,884 $0.50 39.0% $26,546 1.8%
Property Insurance $1,129,997 $1.00 46.4% $1,124,029 $1.00 46.1% $0 0.0%
Real Estate Taxes $796,359 $0.71 25.9% $866,936 $0.77 28.2% $498,024 16.2%
Other $41,247 $0.04 29.1% $38,500 $0.03 27.1% $2,484 1.8%
- ----------------------------------------------------------------------------------------------------------------------------------
Total Expenses $9,896,597 $8.79 38.8% $9,556,751 $8.48 37.5% $286,299 1.1%
==================================================================================================================================
Net Operating Income $14,843,241 $13.18 40.8% $14,225,638 $12.63 39.1% $1,837,643 5.1%
==================================================================================================================================
Deductions
Interest on Encumbrances $0 $0.00 0.0% $0 $0.00 0.0% $0 0.0%
Depreciation Expense $1,838,987 $1.63 36.5% $1,891,342 $1.68 37.5% $167,975 3.3%
Amort. Tenant Alterations $2,168,815 $1.93 50.4% $2,067,247 $1.63 48.0% $0 0.0%
Amort. Leasing Commissions $803,067 $0.71 52.6% $700,930 $0.62 45.9% $0 0.0%
Other Amortization $0 $0.00 0.0% $67,923 $0.06 100.0% $0 0.0%
Amort. Mortg. Discount $0 $0.00 0.0% $0 $0.00 0.0% $0 0.0%
- ----------------------------------------------------------------------------------------------------------------------------------
Total Deductions $4,810,869 $4.27 22.1% $4,727,442 $4.20 21.8% $167,975 0.8%
==================================================================================================================================
Net Cash Flow $10,032,372 $8.91 68.7% $9,498,196 $8.43 65.0% $1,669,668 11.4%
==================================================================================================================================
<CAPTION>
============================================================================================
29,724 SF
B - Level PSF (%) Garage (%)
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Gross income
Rent Office, Apt, Indust. $7,664 $0.26 0.0% $0 0.0%
Rent Commercial $592,445 $19.93 100.0% 50 0.0%
Temporary Tenant Rent $0 $0.00 #DIV/0! $0 #DIV/0!
Rent Percentage $32,778 $1.10 3.0% $0 0.0%
Rent Parking Garage $0 $0.00 0.0% $9,976,478 99.6%
Rent Storage $7,836 $0.26 1.1% $0 0.0%
Marketing Fund Revenue $0 $0.00 #DIV/0! $0 #DIV/0!
Rent Rev (Free Rent) $2,046 $0.07 0.4% $0 0.0%
Recovery of Expenses $34,432 $1.16 1.6% $0 0.0%
Rent Net Lease Taxes $7,998 $0.27 1.5% $0 0.0%
Misc. Tenant Charges $65,410 $2.20 8.3% $0 0.0%
Misc. Income $4,467 $0.15 0.7% $202 0.0%
Interest Income $0 $0.00 0.0% $0 0.0%
Blanket Insur. Proceeds $0 $0.00 0.0% $0 0.0%
- --------------------------------------------------------------------------------------------
Total Revenue $755,076 $25.40 1.2% $9,976,680 16.1%
Operating Expenses
Cleaning $14,442 $0.49 0.6% $18,628 0.6%
Utilities $185,039 $6.23 2.6% $811,670 11.4%
Repairs & Maintenance $34,843 $1.17 1.1% $117,763 3.8%
General Building $214,227 $7.21 5.1% $2,577,554 61.1%
Administrative $238,812 $8.03 16.3% $124,687 8.5%
Management Fee $15,127 $0.51 1.1% $208,357 14.5%
Property Insurance $79,105 $2.66 3.2% $104,716 4.3%
Real Estate Taxes $50,203 $1.69 1.6% $861,267 28.0%
Other $1,289 $0.04 0.9% $56,649 39.9%
- --------------------------------------------------------------------------------------------
Total Expenses $833,087 $28.03 3.3% $4,881,291 19.2%
============================================================================================
Net Operating Income ($78,011) ($2.62) -0.2% $5,095,389 14.0%
============================================================================================
Deductions
Interest on Encumbrances $0 $0.00 0.0% $0 0.0%
Depreciation Expense $63,117 $2.12 1.3% $1,262,198 25.0%
Amort. Tenant Alterations $52,941 $1.78 1.2% $15,533 0.4%
Amort. Leasing Commissions $20,766 $0.70 1.4% $1,613 0.1%
Other Amortization $0 $0.00 0.0% $0 0.0%
Amort. Mortg. Discount $0 $0.00 0.0% $0 0.0%
- --------------------------------------------------------------------------------------------
Total Deductions $136,824 $4.60 0.6% $1,279,344 5.9%
============================================================================================
Net Cash Flow ($214,835) ($7.23) -1.5% $3,816,045 26.1%
============================================================================================
</TABLE>
================================================================================
<PAGE>
1996 Y-T-D Income & Expense Statements
CENTURY PLAZA TOWERS
2029 and 2049 Century Pork East - Century City, CA
Total NRA (SF) 2,282,361
<TABLE>
<CAPTION>
=================================================================================================================================
Actual Actual Estimate Estimate Y-T-D(1)
Thru 9/30/96 PSF October PSF November PSF December PSF 1996 PSF
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Gross Income
Office Rent $31,305,972 $13.72 $3,769,025 $1.65 $4,031,098 $1.77 $3,631,539 $1.59 $35,874,997 $15.37
Retail Rent $767,533 $0.35 $85,195 $0.04 $101,883 $0.04 $101,863 $0.04 $872,728 $0.38
Percentage Rent $970.527 $0.43 $91,480 $0.04 $ 90,733 $0.04 $90,733 $0.04 $1,062,007 $0.47
Parking Revenue $8,125,722 $3.56 $861,621 $0.38 $848,960 $0.31 $849,840 $0.37 $8,967,343 $3.94
Escalation Recovery $1,648,657 $0.72 $186,731 $0.08 $216,146 $0.09 $216,146 $0.09 $1,835,388 $0.80
Settlement Fees $2,580,862 $1.13 $0 $0.00 $0 $0.00 $0 $0.00 $2,580.862 $1.13
Other Revenue $1,720,314 $0.75 $229,528 $0.10 $174,204 $0.08 $174,198 $0.08 $1,949,842 $0.85
- ---------------------------------------------------------------------------------------------------------------------------------
Total Revenue $47,139,567 $20.65 $5,223,580 $2.29 $5,463,024 $2.39 $5,064,339 $2.22 $52,363,187 $22.94
Operating Expenses
Cleaning $1,965,158 $0.86 $244,763 $0.11 $224,283 $0.10 $233,010 $0.10 $2,209,921 $0.97
Utilities $5,189,345 $2.27 $623,289 $0.27 $553,074 $0.24 $574,360 $0.25 $5,812,634 $2.55
Repairs & Maintenance $2,126,105 $0.93 $226,150 $0.10 $251,676 $0.11 $266,410 $0.12 $2,352,255 $1.03
General Building $3,046,329 $1.33 $266,652 $0.12 $311,504 $0.14 $298,064 $0.13 $3,312,981 $1.45
Administrative/Mgmt Fea $2,708,083 $1.19 $321,472 $0.14 $258,674 $0.11 $382,982 $0.17 $3,029,555 $1.33
Fixed Expenses $4,822,687 $2.11 $539,348 $0.24 $562,515 $0.25 $562,599 $0.25 $5,362,035 $2.35
Interest Expense $7,893,485 $3.46 $868,934 $0.38 $867,262 $0.38 $865,578 $0.38 $8,762,419 $3.84
- ---------------------------------------------------------------------------------------------------------------------------------
Total Expenses $27,751,192 $12.16 $3,090,608 $1.35 $3,029,188 $1.33 $3,183,003 $1.39 $30,841,800 $13.51
- ---------------------------------------------------------------------------------------------------------------------------------
Net Operating Income $19,388,395 $8.49 $2,132,972 $0.93 $2,433,836 $1.07 $1,881,336 $0.82 $21,521,387 $9.43
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Annualized(2) Forecasted(3)
1996 PSF 1996 PSF
- -------------------------------------------------------------------------------
Gross income
Office Rent $42,089,996 $18.44 $42,737,634 $18.73
Retail Rent $1,047,274 $0.46 $1,076,494 $0.47
Percentage Rent $1,274,408 $0.56 $1,243,473 $0.54
Parking Revenue $10,784,812 $4.73 $10,686,143 $4.68
Escalation Recovery $2,202,466 $0.96 $2,267,680 $0.99
Settlement Fees $3,097,034 $1.36 $2,580,862 $1.13
Other Revenue $2,339,810 $1.03 $2,298,244 $1.01
- -------------------------------------------------------------------------------
Total Revenue $62,835,800 $27.53 $62,890,530 $27.55
Operating Expenses
Cleaning $2,651,905 $1.16 $2,667,214 $1.17
Utilities $6,975,161 $3.06 $6,940,068 $3.04
Repairs & Maintenance $2,822,706 $1.24 $2,870,541 $1.26
General Building $3,975,577 $1.74 $3,922,549 $1.72
Administrative/Mgmt Fea $3,635,466 $1.59 $3,671,211 $1.61
Fixed Expenses $6,434,442 $2.82 $6,487.149 $2.84
Interest Expense $10,514,903 $4.61 $10,495,259 $4.60
- -------------------------------------------------------------------------------
Total Expenses $37,010,160 $16.22 $37,053,991 $16.23
- -------------------------------------------------------------------------------
Net Operating Income $25,825,640 $11.32 $25,836,539 $11.32
===============================================================================
(1) Y-T-D 1996 Figures based Jan-Oct
(2) Annualized 1996 Figures based Jan-Oct
(3) Forecasted 1996 Figures based on (Actual + Estimates) Delta Towers Joint
Venture
<PAGE>
OFFICE BUILDING VACANCY SURVEY
Century City Office Market
Rental and Occupancy Survey for 4th Quarter 1996
<TABLE>
<CAPTION>
==============================================================================================================================
No. of Inventory Available (SF) Vacancy Ratios
Building Classes Buildings Square Feet Direct Sublease Overall Direct Sublease Overall
==============================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
(A) Top Tier "Class A" 5 4,346,495 196,136 56,701 252,837 4.5% 1.3% 5.8%
- ------------------------------------------------------------------------------------------------------------------------------
(B) Second Tier "Class B" 11 4,040,873 674,652 107,490 782,142 16.7% 2.7% 19.4%
- ------------------------------------------------------------------------------------------------------------------------------
(C) Third Tier "Class B" 4 531,265 72,144 0 72,144 13.6% 0.0% 13.6%
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL 20 8,918,633 942,932 164,191 1,107,123 10.6% 1.8% 12.4%
==============================================================================================================================
</TABLE>
[GRAPHIC OMITTED]
[Bar Chart of Office Building Data]
[GRAPHIC OMITTED]
[Bar Chart of Vacancy Ratio Chart]
<PAGE>
DISCOUNTED CASH FLOW ANALYSIS
Century Plaza Towers o 2029 & 2049 Century Park East o l0 year holding period
<TABLE>
<CAPTION>
==================================================================================================================================
10-year holding period 1 2 3 4 5 6 7 8
beginning 1/1/97 CY 1997 CY 1998 CY 1999 CY 2000 CY 2001 CY 2002 CY 2003 CY 2004
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INCOME
Potential Rental Revenue 53,288,604 57,678,506 59,223,958 60,829,894 61,991,627 63,116,000 65,715,369 66,983,676
Absorption & Turnover Vacancy (896,166) (1,473,101) (869,441) (2,000,132) (1,012,862) (1,643,350) (2,643,335) (2,989,967)
Base Rent Abatements (846,300) (48,265) 0 0 0 0 0 0
Miscellaneous Rental Revenue 533,804 342,027 199,661 176,828 110,897 79,558 78,865 66,288
CPI & Other Adjustment Revenue 671,042 420,247 240,186 251,737 150,996 188,746 425,148 588,005
Retail Sales Percent Revenue 44,366 46,634 48,844 42,775 72,578 76,218 79,985 83,884
Expense Reimbursement Revenue 1,640,733 2,079,975 2,567,658 2,997,562 3,543,792 3,949,168 4,229,498 4,126,460
Miscellaneous Revenue 13,355,840 13,984,580 14,817,026 16,468,205 17,033,325 17,618,223 18,223,592 18,850,149
- ----------------------------------------------------------------------------------------------------------------------------------
Potential Gross Income 67,791,923 73,030,603 76,227,892 78,766,869 81,890,353 83,384,563 86,109,122 87,708,495
- ----------------------------------------------------------------------------------------------------------------------------------
Vacancy/Collection Loss (3,389,597) (3,651,530) (3,811,394) (3,938,344) (4,094,518) (4,169,228) (4,305,456) (4,385,425)
Average 11-yr Vacancy (%)
is 7.2% 6.3% 7.0% 6.1% 7.5% 6.2% 7.0% 8.1% 8.4%
- ----------------------------------------------------------------------------------------------------------------------------------
Effective Gross Income 64,402,326 69,379,073 72,416,498 74,828,525 77,795,835 79,215,335 81,803,666 83,323,070
==================================================================================================================================
EXPENSES
Reimbursable Expenses 22,834,447 23,726,827 24,540,151 25,282,122 26,146,674 26,949,726 27,779,556 28,648,952
Office & Retail Expenses 3,331,128 3,447,718 3,568,388 3,693,281 3,822,548 3,956,336 4,094,807 4,238,126
- ----------------------------------------------------------------------------------------------------------------------------------
Operating Expenses 26,165,575 27,174,545 28,108,539 28,975,403 29,969,222 30,906,062 31,874,363 32,887,078
- ----------------------------------------------------------------------------------------------------------------------------------
Operating Expense Ratio 40.6% 39.2% 38.8% 38.7% 38.5% 39.0% 39.0% 39.5%
- ----------------------------------------------------------------------------------------------------------------------------------
NET OPERATING INCOME 38,236,751 42,204,528 44,307,959 45,853,122 47,826,613 48,309,273 49,929,303 50,435,992
==================================================================================================================================
DEDUCTIONS
Tenant Improvements 5,283,032 3,886,214 2,685,925 3,893,783 2,157,564 4,248,378 4,802,702 5,848,227
Leasing Commissions 2,250,355 1,414,174 986,032 1,403,373 722,538 1,909,067 2,104,034 2,230,783
Capital Costs & Reserves 8,140,477 703,333 488,989 506,103 523,817 542,151 561,126 580,765
- ----------------------------------------------------------------------------------------------------------------------------------
Total Deductions 15,673,864 6,003,721 4,140,946 5,803,259 3,403,919 6,699,596 7,467,862 8,659,775
- ----------------------------------------------------------------------------------------------------------------------------------
==================================================================================================================================
NET CASH FLOW 22,562,887 36,200,807 40,167,013 40,049,863 44,422,694 41,609,677 42,461,441 41,776,217
==================================================================================================================================
- ----------------------------------------------------------------------------------------------------------------------------------
CASH ON CASH 4.9% 7.9% 8.7% 8.7% 9.7% 9.1% 9.2% 9.1%
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
======================================================================
10-year holding period 9 10 11
beginning 1/1/97 CY 2005 CY 2006 CY 2007
- ----------------------------------------------------------------------
INCOME
Potential Rental Revenue 68,722,996 70,642,963 72,815,038
Absorption & Turnover Vacancy (2,344,820) (1,168,811) (3,347,980)
Base Rent Abatements 0 0 0
Miscellaneous Rental Revenue 45,000 0 0
CPI & Other Adjustment Revenue 733,900 1,063,393 1,245,476
Retail Sales Percent Revenue 87,920 71,833 90,523
Expense Reimbursement Revenue 4,143,034 4,690,617 5,171,225
Miscellaneous Revenue 19,498,637 20,169,821 20,864,498
- ----------------------------------------------------------------------
Potential Gross Income 90,886,667 95,469,816 98,838,778
- ----------------------------------------------------------------------
Vacancy/Collection Loss (4,544,333) (4,773,491) (4,841,940)
Average 11-yr Vacancy (%)
is 7.2% 7.6% 6.2% 8.5%
- ----------------------------------------------------------------------
Effective Gross Income 86,342,334 90,696,325 91,996,838
======================================================================
EXPENSES
Reimbursable Expenses 29,604,813 30,626,456 31,508,479
Office & Retail Expenses 4,386,460 4,539,987 4,698,887
- ----------------------------------------------------------------------
Operating Expenses 33,991,273 35,166,443 36,201,366
- ----------------------------------------------------------------------
Operating Expense Ratio 39.4% 38.8% 39.4%
- ----------------------------------------------------------------------
NET OPERATING INCOME 52,351,061 55,529,882 55,789,472
======================================================================
DEDUCTIONS
Tenant Improvements 5,235,768 2,416,851 4,812,694
Leasing Commissions 1,970,041 1,042,216 2,111,308
Capital Costs & Reserves 601,092 622,130 643,905
- ----------------------------------------------------------------------
Total Deductions 7,806,901 4,081,197 7,567,907
- ----------------------------------------------------------------------
=========================================================
NET CASH FLOW 44,544,160 665,132,877
=========================================================
- ---------------------------------------------------------
CASH ON CASH 9.7% 11.2%
- ---------------------------------------------------------
AVG. CASH ON CASH 8.8%
FIVE YEAR AVERAGE 8.0%
INITIAL CAP. RATE 6.3%
- --------------------------------------------
TERMINAL CAP. RATE 9.0%
TRANSACTION COST 1.0%
DISCOUNT RATE 10.5%
- --------------------------------------------
REVERSIONARY VALUE $613,684,192
- --------------------------------------------
NET PRESENT VALUE (NPV) $459,627,593
- --------------------------------------------
NRV - Per Square Foot $201.38
============================================================
VALUE MATRIX
Low-Range Mid-Range Hi-Range
- ------------------------------------------------------------
Discount Rate 10.0% 10.5% 11.0%
Net Present Value $475,639,916 $459,627,593 $444,311,719
NPV (PSF) $208.40 $201.38 $194.67
============================================================
Total Bldg (SF): 2,282,381
Net Operating Income (NOI) vs. Net Cash Flow (NCF)
[GRAPHIC OMITTED]
[Line graph depicting Net Operating Income vs. Net Cash Flow]
================================================================================
<PAGE>
<TABLE>
<CAPTION>
Comparative Analysis of U.S. Treasuries & REITS
August 1995 through July 1996
- ---------------------------------------------------------------------------------------------------------------------------------
United States Treasury Yields Real Estate Investment Trust Yields
- ---------------------------------------------------------------------------------------------------------------------------------
Period Long-Term Intermediate Short-Term Equity Mortgage Hybrid All
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Jul-96 7.14 6.69 6.16 7.3 9.8 7.8 7.5
Jun-96 7.25 6.76 6.24 7.3 9.0 7.8 7.4
May-96 7.09 6.53 6.03 7.4 9.0 7.8 7.5
Apr-96 6.98 6.39 5.93 7.5 10.2 7.7 7.7
Mar-96 6.75 6.11 5.67 7.4 9.9 7.8 7.5
Feb-96 6.37 5.58 5.10 7.2 8.8 7.8 7.4
Jan-96 6.12 5.45 5.13 7.2 8.4 7.5 7.3
Dec-95 6.16 5.58 5.36 7.4 9.0 7.7 7.5
Nov-95 6.37 5.79 5.54 7.8 8.9 8.1 7.8
Oct-95 6.49 5.95 5.74 7.7 8.9 7.9 7.8
Sep-95 6.69 6.11 5.85 7.5 8.9 7.9 7.6
Aug-95 6.96 6.37 6.05 7.7 8.3 8.2 7.7
- ---------------------------------------------------------------------------------------------------------------------------------
Average 6.70 6.11 5.73 7.45 9.09 7.83 7.56
=================================================================================================================================
</TABLE>
[GRAPHIC OMITTED]
[Line Chart of Comparative Analysis Trend
August 1995 through July 1996]
<PAGE>
Century Plaza Towers o Century City, CA
INCOME & EXPENSE PROFORMA
- ------------------------------------------------------------------
Combined
Calendar Year Beginning January 1997 PSF
- ------------------------------------------------------------------
Gross Income
Potential Rental Revenue $53,288,604 $23.35
Absorption & Turnover Vacancy (896,166) (0.39)
Base Rent Abatements (846,300) (0.37)
Miscellaneous Rental Revenue 533,804 0.23
CPI & Other Adjustment Revenue 671,042 0.29
Retail Sales Percent Revenue 44,366 0.02
Expense Reimbursement Revenue 1,640,733 0.72
Miscellaneous Revenue 13,355,840 5.85
Vacancy / Collection Loss (3,389,597) (1.49)
- ---------------------------------------------------- -----------
Effective Gross Income $64,402,326 $28.22
- ---------------------------------------------------- -----------
Operating Expenses
Reimbursable Expenses $22,834,447 $10.00
Office & Retail Expenses 3,331,128 1.46
- ---------------------------------------------------- -----------
Total Expenses $26,165,575 $11.46
- ---------------------------------------------------- -----------
- ------------------------------------------------------------------
Total Net Operating Income $38,236,751 $16.75
==================================================================
VALUE TABLE Total Rentable Area SF: 2,282,381
- ------------------------------------------------------------------
Indicated Value Cap Rate PSF
- ------------------------------------------------------------------
$477,959,388 8.0% $209.41
$449,844,129 8.5% $197.09
$424,852,789 9.0% $186.14
$402,492,116 9.5% $176.35
$382,367,510 10.0% $167.53
$364,159,533 10.5% $159.55
$347,606,827 11.0% $152.30
[GRAPHIC OMITTED]
[Photo of Century Plaza Towers]
