For more information, please go to www.cbre.com/dgproperties

KMART CENTER - SACRAMENTO, CA

D u B o i s G i a n u l i a sw w w. c b r e . c o m / d g ACCEPTING OFFERS IMMEDIATELY

E x c l u s i v e l y O f f e r e d B y

John DuBoisS e n i o r V i c e P r e s i d e n t9 1 6 . 4 4 6 . 8 7 6 1j o h n . d u b o i s @ c b r e . c o m

Jon GianuliasS e n i o r V i c e P r e s i d e n t9 1 6 . 4 4 6 . 8 7 8 7j o n . g i a n u l i a s @ c b r e . c o m

Mark DenholmA s s o c i a t e9 1 6 . 4 4 6 . 8 2 4 5m a r k . d e n h o l m @ c b r e . c o m

Joe DuBoisA s s o c i a t e9 1 6 . 4 4 6 . 8 2 8 0j o e . d u b o i s @ c b r e . c o m

CB Richard Ellis, Inc.555 Capitol Mall, Suite 100Sacramento, California 95814Fax: 916.446.8292

STOCKTON BLVD (26,000 ADT)

STOCKTON BLVD (26,000 ADT)

WAREHOUSE SUPERMARKETS

5200 STOCKTON BOULEVARDSACRAMENTO, CALIFORNIAKMART CENTER

• Value Add Opportunity in Below Market Rents and

Parcelized Pads

• Stable Investment – 100% Leased

• Center Anchored by National Tenants

• Location serving Stockton Blvd Trade Area, Surrounded by

High Density Residential In-Fill Area

• To Be Delivered Free and Clear of Existing Debt

HIGHLIGHTS SUMMARY

ACCEPTING OFFERS IMMEDIATELYPrice: Best Offer

CY 2007 Projected NOI: $959,068

Property: 5200 Stockton Boulevard Sacramento, CA

Leasable Space Included: ±132,630 SF

Land Included: ±10.37 Acres

Year Built: 1967

PROPERTY DESCRIPT ION

This offering is a neighborhood shopping center in Sacramento’s Stockton Blvd retail corridor. Stockton Blvd is a major north-south thoroughfare, with an average 26,000 vehicles per day at the Offering. The Offering has excellent exposure on Stockton Blvd and is easily accessible to regional traffic via Fruitridge Road, which provides an interchange with State Hwy 99 just over a mile from the offering. Stockton Blvd is a 4-lane thoroughfare that serves as an alternate north-south route for commuters avoiding the congestion of State Hwy 99.

DEMOGRAPHICS

1 Mile 3 Mile 5 Mile

2006 Population (est) 27,072 170,843 411,655

Population Growth (2000-2006) 7.33% 7.31% 8.32%

Average Household Income $43,723 $49,428 $53,777

MARKET DESCRIPT ION

The South Sacramento market contains approximately 4.2 million square feet of retail space, over 12% of the regional market’s inventory. There are an additional 220,000 square feet under development to take advantage of the on-going revitalization of Stockton Blvd. Average asking rental rates in the market were at $1.50 in the 2nd Quarter of 2006. This Kmart Shopping Center’s average in-place rents (excluding Kmart) are $1.17 as of August 2006, below market and ensuring strong retention of existing tenants, and Kmart’s rent of $0.34 NNN is significantly below market.

DUBOIS GIANULIAS

www.cbre.com/dg

FINANCIAL SUMMARY

Income CY 2007

Minimum Rent 978,352Retail Sales Percentage Rev. 9,453CAM Reimbursement 265,354Other Income 1 2,391

Total Gross Income 1,255,550 TRUEVacancy Allowance 2 3% (7,763)

Effective Gross Income 1,247,787 TRUE

Expenses 3

CAM Expenses 149,297Management Fees 37,434Insurance 7,457Property Taxes 94,531 0.67%

Total Expenses (288,719)

Net Operating Income $959,068

Footnotes:

3. Based on Seller's budget

1. Misc Revenues in Seller's Agus model, undefined

2. Total gen. vac'y factor of 3%, excluding income from Kmart, Burger King and Round Table

Tenant Sales information will be available to interested parties upon request. Please contact us for further information.

5200 STOCKTON BOULEVARDSACRAMENTO, CALIFORNIAKMART CENTER

NOT TO SCALE -- ALL DIMENSIONS ARE

APPROXIMATE.

S ITE PLANPARCEL MAP

OFFERING

OFFERING

STOCKRIDGE PLAZA

WAREHOUSE SUPERMARKETS ( (5210

DUBOIS GIANULIAS

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RENT ROLL

Rentable As of August 2006

Suite Tenant Sq Ft (±) Share Start End Annual Rent Mon. Rent $/Sq. Ft. On To Options

100 RadioShack 2,381 1.8% Nov-05 Jan-09 $38,100.00 $3,175.00 $1.33 Nov-06 $3,333 NoneNov-07 $3,500

110 Access Dental 2,480 1.9% Feb-02 Jan-07 $35,484.00 $2,957.00 $1.19 None

115 Tobacco Store 1,877 1.4% Apr-05 May-10 $30,180.96 $2,515.08 $1.34 Jun-07 $2,590 1, 5-yr option with $75/mo annual increasesAnnually $75/mo

120 Compremex LLC 1,292 1.0% Nov-05 Oct-08 $20,352.00 $1,696.00 $1.31 Nov-06 $1,763 NoneNov-07 $1,834

125 Lily's Beauty 1,020 0.8% May-06 Apr-11 $13,800.00 $1,150.00 $1.13 May-07 $1,196 NoneAnnually 4%

130 Check Into Cash 1,258 0.9% Aug-02 Jul-08 $18,876.00 $1,573.00 $1.25 Option $1,808 1, 3-yr option at $1,808/mo

135 Euromarket 1,656 1.2% Sep-04 Aug-09 $19,128.00 $1,594.00 $0.96 Sep-06 $1,674 1, 5-yr option with 5% annual increasesAnnually 5%

140 Carniceria Mexico 1,480 1.1% Oct-03 Dec-06 $20,424.00 $1,702.00 $1.15 Opt 1 $1,776 1, 3-yr option at $1.20, $1.30, $1.30

145 Servicios Latinos 1,640 1.2% Mar-06 Jun-11 $24,600.00 $2,050.00 $1.25 Apr-07 $2,132 1, 5-yr option with continued $0.05/mo bumpsAnnually $0.05/sf/mo

150 - 180 Aaron Rentals 9,300 7.0% Jul-01 Jun-11 $84,249.00 $7,020.75 $0.75 Option $7,723 1, 5-yr option remaining at fixed rent

5050 China Palace II 1,485 1.1% Sep-03 Aug-08 $33,192.00 $2,766.00 $1.86 Sep-06 $2,905 NoneSep-07 $3,049

5060 La Favorita Taqueria 3,040 2.3% Dec-02 Feb-08 $43,411.20 $3,617.60 $1.19 Jan-07 $3,739 None

5140 Round Table Pizza 3,280 2.5% Sep-05 Aug-08 $51,480.00 $4,290.00 $1.31 Sep-06 $5,117 NoneSep-07 $5,321

5150 Burger King 3,795 2.9% Sep-04 Aug-09 $73,920.00 $6,160.00 $1.62 Sep-06 $6,344 3, 5-yr options at FMV remainAnnually 3%

5200 Kmart 1 74,000 55.8% Feb-02 Jan-12 $395,000.04 $32,916.67 $0.34 Feb-07 $37,255 4, 5-yr options at set increases remainEach Opt 6%

5210 Big Lots 22,349 16.9% Subleased from Kmart

BATH Restrooms 297 0.2%

Total GLA 132,630 100.0% $1.17 Average In-Place Excluding Kmart

Total Available 0.0% $902,197.20 $75,183.10 $0.57 Total Average In-Place

TOTAL OFFERING GLA 132,630

1. Kmart has been tenant since 1964. Now in Primary Term of new lease with current LL dated November 2001, have exercised first of 5, 5-yr options. $/sf/mo rent is for total 96,349 SF noted in Lease.

Increases

N/A

5200 STOCKTON BOULEVARDSACRAMENTO, CALIFORNIAKMART CENTER

KMART CENTERTENANT PROFILES

BIG LOTS www.biglots.com

Big Lots is the nation’s #1 closeout retailer, with some 1,400 stores in 47 states. (More than one-third of its stores are located in California, Florida, Ohio, and Texas.) It sells a variety of brand-name products that have been overproduced or discontinued, typically at 20% to 40% below discounters’ prices, as well as private-label items. Big Lots closed 43 Big Lots Furniture stores in 2005.

BURGER KING www.burgerking.com

Burger King Holdings operates the world’s #2 hamburger chain (behind McDonald’s) with more than 11,100 restaurants in the US and about 65 other countries. In addition to its popular Whopper sandwich, the chain offers a variety of burgers, chicken sandwiches, salads, and breakfast items. About 1,300 BK locations are company-owned, while the rest are owned and operated by franchisees. Burger King was founded by James McLamore and David Edgerton in 1954. Investment firms Texas Pacific Group, Bain Capital, and Goldman Sachs each own about 25% of the company.

KMART www.kmart.com

Kmart Holding Corporation, a subsidiary of Sears Holding Corp, operates Kmart stores throughout the US. Sears Holding Corp was formed after the merger of Kmart and Sears Roebuck in March 2005. Holding is a broadline retailer with approximately 2,300 full-line and 1,100 specialty retail stores in the United States and 370 Sears stores in Canada. Net Sales in 2005 were at $49B, and the company is on the right track with Assets at $30.6B and just under $20B in liabilities.

RADIO SHACK www.radioshack.com

RadioShack is one of the leading consumer electronics retail chains in North America with more than 7,460 outlets in the US, Puerto Rico, the Virgin Islands, Canada, and Mexico. Its stores offer a variety of products, including computers, DVD players, electronic toys, telephones, and, of course, radios. The stores also sell third-party services such as wireless calling plans and direct satellite service. The chain includes more than 1,700 dealer outlets and about 750 kiosks located primarily in malls and SAM’S CLUB stores (kiosks are not RadioShack-branded).

ROUND TABLE PIZZA www.roundtable.com

William Larson opened the first Round Table Pizza in 1959 and began franchising the restaurants three years later. Round Table Pizza now operates a chain of more than 500 of its signature pizza parlors located primarily in the western US as well as in Asia and the Middle East. Round Table also serves specialty pizzas, sandwiches, salads, and appetizers. Most of the employee-owned company’s locations are operated by franchisees.

DUBOIS GIANULIAS

www.cbre.com/dg

CASH FLOW

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 For the Years Ending Dec-2007 Dec-2008 Dec-2009 Dec-2010 Dec-2011 Dec-2012 Dec-2013 Dec-2014 Dec-2015 Dec-2016

Scheduled Base Rental Revenue 978,352 996,688 1,030,383 1,051,343 1,076,550 1,120,124 1,122,002 1,133,846 1,157,357 1,158,047 Retail Sales Percent Revenue 9,453 9,735 10,036 10,337 10,647 10,967 11,296 11,634 11,983 12,343 Total Reimbursement Revenue 265,354 270,503 279,681 287,526 295,593 303,177 310,132 318,492 328,056 332,148 Other Income 2,391 2,462 2,536 2,612 2,691 2,771 2,855 2,940 3,028 3,119

Total Potential Gross Revenue 1,255,550 1,279,388 1,322,636 1,351,818 1,385,481 1,437,039 1,446,285 1,466,912 1,500,424 1,505,657 General Vacancy (7,763) (292) (11,764) (17,453) (19,401) (15,568) (7,568) (7,406) (13,769) (3,257)

Effective Gross Revenue 1,247,787 1,279,096 1,310,872 1,334,365 1,366,080 1,421,471 1,438,717 1,459,506 1,486,655 1,502,400

Operating Expenses Management Fee 37,434 38,373 39,326 40,031 40,982 42,644 43,162 43,785 44,600 45,072 CAM 149,297 153,776 158,389 163,141 168,035 173,076 178,268 183,616 189,125 194,798 Insurance 7,457 7,681 7,911 8,149 8,393 8,645 8,904 9,171 9,447 9,730 Property Taxes 94,531 96,421 98,350 100,317 102,323 104,369 106,457 108,586 110,758 112,973

Total Operating Expenses 288,719 296,251 303,976 311,638 319,733 328,734 336,791 345,158 353,930 362,573

Net Operating Income 959,068 982,845 1,006,896 1,022,727 1,046,347 1,092,737 1,101,926 1,114,348 1,132,725 1,139,827

Leasing & Capital Costs Tenant Improvements 6,386 24,038 10,034 4,164 2,956 7,403 27,866 16,876 10,951 40,183 Leasing Commissions 5,086 26,039 8,336 3,095 2,197 5,896 30,187 13,004 8,464 18,547 Capital Reserves 13,661 14,071 14,493 14,928 15,375 15,837 16,312 16,801 17,305 17,824

Total Leasing & Capital Costs 25,133 64,148 32,863 22,187 20,528 29,136 74,365 46,681 36,720 76,554

Cash Flow Before Debt Service 933,935 918,697 974,033 1,000,540 1,025,819 1,063,601 1,027,561 1,067,667 1,096,005 1,063,273

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5 99

555 Capitol Mall, Suite 100Sacramento CA 95814

916.446.6800

Target

Raley's

FREEPORT PLAZARite Aid, Hollywood Video

STOCKRIDGE PLAZAFoodsCo, Dollar Tree,98 Cent & Deals

FRUITRIDGE SHOPPING CTR

Home Depot, Office Max

DD's Discounts, 99 Cent Only

FLORIN WEST CTRBel Air, Longs Drugs,Hollywood Video,Dollar Tree SOUTH POINT CENTER

Rite Aid, Hancock Fabrics, Rainbow Foods, Dollar Store

Family Bargain, Dollar TreePak n' Save (Dark)

FLORIN MALL to become FLORIN TOWN CENTRESuper Wal-Mart (Prop.), Sears

SOUTH CENTERSF Supermarket

VALLEY MACK PLAZAFood Source, DD Discounts,AJ Wright, Blockbuster

VALLEY HI VILLAGEBig Lots, Dollar Tree

POWER INN CENTERFoodsCo, Blockbuster, Kragen

VINEYARD SQUAREAlbertsons, Rite Aid, Hollywood VideoSam's Club

Home Depot

Smart N Final

SOUTHGATE PLAZAWal-Mart, Albertsons-SavOn,Office Max, Ross

VALLEY CENTERRaley's, Hollywood Video

HOME LEISURE PLAZACircuit City (Dark), USA Baby, California Backyard, Oak Furniture

SOUTH SACRAMENTO

M i l e s

0 1 / 2 1

Walgreens Bel Air

Home Depot, Staples

Rite Aid

Food Source, Walgreens,Hollywood Video

Burlington Coat, MJM Designer Shoes,Les Schwab

RIVER OAKSRite Aid, Food Maxx, Goodwill

Walgreens

Walgreens

Furniture USA

1512 Eureka Rd, Suite 100Roseville CA 95661

916.781.2400

PACIFIC RIM PLAZA

Walgreens

La Superior Mexican Market

Walgreens (Prop.)

Walgreens (Prop.) Raley's (Prop.)

Target (Prop.)

PACIFIC PLAZASF Supermarket

Costco, Petsmart, Office Depot

SUBJECTPROPERTY

KMART CENTER

© 2006 CB Richard Ellis, Inc. We obtained the information above from sources we believe to be reliable. However, we have not verified its ac-curacy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction. 90906069

Seller herby advises receiving party that Seller is not currently the owner of the property, and receiving party expressly acknowledges and under-stands that any transaction contemplated herein is expressly subject to and conditioned upon Seller becoming the owner of the Property pursuant to successful completion of the pending merger between seller and Pan Pacific Retail Properties, Inc.