Flagstaff, AZ

18301 Von Karman Avenue, Suite 800Irvine, CA 92612Phone: (949) 221-1800 Fax: (949) 221-1830www.farislee.com

EXCLUSIVE INVESTMENT ADVISOR:

4751 E. MARKETPLACE DRIVE, FLAGSTAFF, AZ 86004

WHY FLAGSTAFF? 10

PRICING ANALYSIS 17

TENANT SYNOPSIS 22

PROPERTY OVERVIEW 3

TABLE OF CONTENTS

The information contained herein has been carefully compiled from sources we consider reliable, and while not guaranteed as to completeness or accuracy, we believe it to be correct as of this date. The proforma revenues and expenses set forth in this brochure do not constitute a representation, warranty, or guaranty of any of the numbers set forth herein or of any economic value attributable to the property or income that may be derived therefrom. Independent estimates of proforma revenues and expenses should be developed before any decision is made on whether to invest in the property. Buyer to verify square footage of building, and the potential for adding additional floors.

Flagstaff, AZ Donald MacLellanSenior Managing Partnerdmaclellan@farislee.com(949) 221-1821R.E. License No. 0897784

CBC Advisors and Faris Lee Investments (“FLI”) have been engaged respectively as the exclusive broker and exclusive investment advisor to the Seller in connection with Seller’s solicitation of offers for the purchase of the property known as The Marketplace, City of Flagstaff, County of Coconino, State of Arizona. Prospective purchasers are advised that as part of the solicitation process, Seller will be evaluating a number of factors including the current financial qualifications of the prospective purchaser. Seller expressly reserves the right in its sole and absolute discretion to evaluate the terms and conditions of any offer and to reject any offer without providing a reason therefore. Further, Seller reserves the right to terminate the solicitation process at any time prior to final execution of the Purchase Agreement.

The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property, and it is not to be used for any other purpose or made available to any other person without the express written consent of Seller or FLI. The material is based in part upon information supplied by the Seller and in part upon financial information obtained

by FLI from sources it deems reasonably reliable. Summaries of any documents are not intended to be comprehensive or all-inclusive, but rather only outline some of the provisions contained therein and qualified in their entirety by the actual document to which they relate.

No representation or warranty, expressed or implied, is made by the Seller, FLI, or any of their respective affiliates as to the accuracy or completeness of the information contained herein. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence, including engineering and environmental inspections, to determine the condition of the Property and the existence of any potentially hazardous material located at the Property site or used in the construction or maintenance of the building at the Property site.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those

expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or FLI or any of their affiliates or any of their respective officers, directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

Prospective purchasers are not to construe the contents of this Offering Memorandum or any prior or subsequent communication from FLI or Seller or their affiliates or any of their respective officers, directors, shareholders, owners, employees, or agents as legal, tax, or other advice. Prior to submitting an offer, prospective purchasers should consult with their own legal counsel and personal and tax advisors to determine the consequences of an investment in the Property and arrive at an independent evaluation of such investment.

STATEMENT OF CONFIDENTIALITY & DISCLAIMER

DOMINANT COMMUNITY CENTER INVESTMENT OFFERING IN

ARIZONA’S FASTEST-GROWING SCIENCE & TECHNOLOGY CENTER

Kalen RickardSenior Vice PresidentCBC Advisorskalen.rickard@cbcadvisors.com(602) 910-6486 AZ Broker License No. LC659198000

BROKER OF RECORD:

PROPERTY OVERVIEW

PRICINGPricing: $26,600,000NOI: $1,996,911Cap Rate: 7.50%Cash on Cash: 10.84%

INVESTMENT SUMMARYCBC Advisors (“Exclusive Broker”) and Faris Lee Investments (“Investment Advisor”) are pleased to offer for sale the leasehold interest in The Marketplace (the “Property”), 268,022-square-foot dominant community center in a highly growing area of Flagstaff. The center features a mix of industry leading daily-needs, home improvement and discount retailers including Home Depot, Petco, Cost Plus World Market, Best Buy, Marshall’s, Bealls, Tuesday Morning and Old Navy. About 85% of these tenants have been in the center for 10 years, demonstrating retailer commitment and strength of the trade area. Besides the existing center, there are also three (3) developable outparcels included in the offering, which provides value-add opportunity. From a tax perspective, the favorable long-term ground lease with the state of Arizona allows the investor 100% depreciation on the investment.

LOCATION SUMMARYFlagstaff, AZ features a highly educated population (45% have Bachelor degrees or higher); strong forecasted job growth (39% over the next 10 years); strong science and technology industries; new high-density residential developments; and an exceptionally robust tourism industry with over 4.6 million annual visitors to attractions such as nearby Grand Canyon, Snowbowl ski resort and Lowell Observatory. The subject property is located in the most dynamic submarket of Flagstaff, close to the relocated Harkins Theater (only movie theater in city), Flagstaff Regional Mall (undergoing redevelopment with new institutional ownership), new Hampton Inn/Fairfield Hotel and the Flagstaff auto center, including soon-to-be opened Mercedes-Benz dealership. With all these nearby developments, The Marketplace is ideally positioned to benefit from new destination traffic, cross-traffic and tourism in this growing retail corridor.

THE INVESTMENT

4

PROPERTY OVERVIEW | INVESTMENT SUMMARY

FUNDAMENTALLY STRONG MARKET AREA – FLAGSTAFF Q Highly educated population (45% have Bachelor degrees or higher)

and strong forecasted job growth (39% over the next 10 years)

Q Science and technology employers including Flagstaff Medical Center (#5 Best Hospital in Arizona), US Geological Survey (sole science agency for Department of the Interior), Lowell Observatory (world-class astronomical facility) and W.L. Gore (leading biomedical firm & #3 on World’s Best Multinational Workplaces list)

Q Growing Northern Arizona University (3,000 new students over next 3 years) and new high-density residential developments will drive population growth

Q Robust tourism industry (over 4.6 million annual visitors) for attractions including The Grand Canyon, Snowball ski resort and Lowell Observatory

AWARD-WINNING TRADE AREA FOR BOTH YOUNG PROFESSIONALS AND FAMILIES

Q Ranked #1 Most Up-and-Coming City (America Unraveled 2016)

Q Ranked #1 Best Place for Millennials in Arizona (Niche 2017)

Q Ranked #1 Small College Town with Great Quality of Life (BestChoiceSchools.com 2016)

Q Ranked #3 for Best College Town - Northern Arizona University (American Institute of Economic Research, 2017)

LOCATED IN MOST DYNAMIC SUBMARKET IN FLAGSTAFF Q Next to newly Relocated State-of-the-Art Harkins Multiplex Theater -

Highly Successful Opening

Q Adjacent to Flagstaff Auto Center including the new Mercedes-Benz dealership (opening 2nd Quarter 2018)

Q Nearby Flagstaff Regional Mall undergoing redevelopment with new institutional ownership

Q New Hampton Inn and Fairfield Hotel across the highway

DOMINANT COMMUNITY CENTER IN FLAGSTAFF – STRONG INDUSTRY LEADING RETAILERS

Q Synergistic mix of leading daily-needs, home improvement and discount retailers

Q Daily-needs tenants include Petco, Cost Plus World Market and Best Buy

Q Home improvement leader Home Depot

Q Bealls - New Store with Strong Opening Sales

Q Discount retailers include Marshall’s, Tuesday Morning and Old Navy

HIGHLIGHTS

5

PROPERTY OVERVIEW | HIGHLIGHTS

LONG-TERM OCCUPANCY WITH RECENT NEW LEASES & TENANT RENEWALS

Q Long-term occupancy, recent renewals and new leasing demonstrates retailer commitment and strength of the trade area

Q Recent renewals of 43% of GLA including Petco, Best Buy and Tuesday Morning

Q Approximately 85% of tenants have been in the center for at least 10 years

Q New 10-year lease with Bealls - Excellent Grand Opening Sales

INSTITUTIONAL QUALITY CONSTRUCTION – PRIDE OF OWNERSHIP

Q Institutional quality construction with modern brick facade

Q Investment-grade community center with nationally recognized retailers

EXCELLENT CASH-ON-CASH RETURNS & OPEN TO HISTORICALLY LOW RATE FINANCING

Q Potential to achieve double-digit, cash-on-cash returns

Q Current interest rates still at historic lows

VALUE-ADD OPPORTUNITY Q Three (3) developable outparcels included in the offering

Q Ability for new owner to create value and help energize retail corridor by developing pads that feed off of Harkins Theater destination traffic and Flagstaff Regional Mall redevelopment cross-traffic

100% DEPRECIATION AVAILABLE Q Favorable long-term ground lease with the state of Arizona

Q Leasehold position allows the investor 100% depreciation on the investment

HIGHLIGHTS CONT.

6

PROPERTY OVERVIEW | HIGHLIGHTS

7

2007YEAR BUILT

28.89ACRES

Three (3) Land Pads IncludedFOR DEVELOPMENT

268,022RENTABLE SQUARE FEET

100% LeasedINDUSTRY LEADING NATIONAL RETAILERS

PROPERTY OVERVIEW | PROPERTY KEY FACTS

Near Flagstaff MallUNDERGOING REDEVELOPMENT WITH NEW INSTITUTIONAL OWNERSHIP

8

Next to Flagstaff Auto Center

Adjacent to NewState-of-the-Art Harkins TheaterONLY MOVIE THEATER IN FLAGSTAFF EXCELLENT OPENING SALES

NEW MERCEDES-BENZ DEALERSHIP OPENING IN 1Q 2018

PROPERTY OVERVIEW | SURROUNDING COMMERCIAL PROPERTY FACTS

9

39.26%PREDICTED JOB GROWTH OVER THE NEXT 10 YEARS

200,000PEOPLE WITHIN TRADE AREA

45.37%FLAGSTAFF POPULATION WITH COLLEGE DEGREES

53.35%POPULATION GROWTH SINCE 2000

22 MinutesAVERAGE COMMUTE TIME

4,600,000ANNUAL VISITORS

PROPERTY OVERVIEW | REGIONAL MAP FLAGSTAFF FACTS

WHY FLAGSTAFF?

11

WHY FLAGSTAFF? | TRADE OVERVIEW

TOP SCIENCE/TECHNOLOGY EMPLOYERS IN FLAGSTAFF

Flagstaff Medical Center Q Major hospital and trauma center

serving entire Northern Arizona area Q Ranked one of Arizona’s Top Hospitals Q 2,200 Employees

W.L. Gore Technologies Q Leading Bio Medical Firm Q One of Fortune Magazine’s top 100

places to work in 2017 Q 1,900 Employees

Northern Arizona University Q More than 30,000 Students Q Employs more than 2,500 faculty and

staff Q Ranked #4 in USA Today’s best small

college towns

Lowell Observatory Q World-Class Astronomical Facility Q Established in 1894 Q Conducts research and public

education programs on-site and conducts research worldwide

US Geological Survey Astrogeology Science Center

Q Primary Science Agency for Department of the Interior

Q Ongoing research addresses issues related to water, ecosystems, climate and land-use change, energy and minerals, environmental health, and planetary exploration and study

12

WHY FLAGSTAFF? | GROWING SCIENCE & TECHNOLOGY HUB

HOTELS

Hampton Inn Q Recently opened in Aug 2017 Q 98 rooms

Fairfield Inn Q Under construction with Nov 2017

delivery Q 100 rooms

Marriott Residence Inn Q Recently opened in Sept 2017 Q 100 rooms

SINGLE FAMILY RESIDENTIAL

Presidio in the Pines Q Under construction townhomes

and single family Q 470 dwelling units

Pinnacle Pines Q Under construction townhomes Q 266 dwelling units

Juniper Point Q Planned mixed-use/residential Q 1,590 dwelling units

Canyon Del Rio Q Planned mixed-use/residential Q 1,390 dwelling units

HIGH DENSITY MULTIFAMILY

Fremont Station Q Under construction mixed-use/MF Q 227 units

The Hub Q Under construction mixed-use/MF Q 206 units

Mill Town Q Planned mixed-use/MF Q 340 units

The Standard at Flagstaff Q Planned mixed-use/MF Q 245 units

13

WHY FLAGSTAFF? | HOTEL AND RESIDENTIAL DEVELOPMENT

FOREST HIGHLANDSForest Highlands recently completed a $6.75 million renovation to both The Canyon and The Meadow Clubhouses. Improvements consisted of expanding and enhancing dining rooms, lounges, wraparound decks, a new childrens center, and much more.

Q Forest Highlands’ Canyon Golf Course is ranked #2 for private golf courses in Arizona

Q Forest Highlands’ Meadow Golf Course is ranked #8 for private golf courses in Arizona

Q Forest Highland Golf Course is ranked among the top 100 courses in the world by Golf Digest in 2017

Q Forest Highlands encompasses 1,100 acres with home values ranging between $470,000 to $3,250,000 around the luxurious golf course

PINE CANYONPine Canyon Golf Courses is a private course that was designed by Jay Morrish and offers challenging play with scenic views of the San Francisco peaks.

Q The golf courses includes a 35,000 square-foot club house that offers fine dining, wine tasting, and state of the art spa and fitness facilities

Q Pine Canyon Golf Course is ranked #5 for private golf courses in Arizona

Q Pine Canyon Golf Course is ranked among the top 100 courses in the world by Golf Digest in 2017

Q The Pine Canyon Golf Course is a private community with homes available for purchase up to $1,480,000 and for lease from $425 to $495 per night14

WHY FLAGSTAFF? | PREMIUM GOLF DEVELOPMENTS

TOURISM IN FLAGSTAFFWith many well recognized attractions in and around Flagstaff, tourism is a big economic driver for city of Flagstaff. The city experiences more than 4 million visitors annually, who come to see the many attractions Flagstaff has to offer. Flagstaff has more hotels per capita than Las Vegas, which employs over 5,400 employees for the large amount of visitors the city experiences annually.

GRAND CANYON NATIONAL PARKDesignated as one of the 7 natural wonders of the world, Grand Canyon National park is located within an hour’s drive of Flagstaff. The canyon is 277 miles long and is up to 18 miles wide, attracting in excess of 5 million visitors per year.

SEDONA NATIONAL PARKSedona National Park is 1.8 million acres of national forest land located 30 miles south of Flagstaff. The beautiful scenery in the park attracts more than 3 million visitors annually.

ARIZONA SNOWBOWLOpened in 1938, Arizona Snowbowl is one of the few ski resorts in Arizona. The mountain resort in Flagstaff employs more than 550 seasonal staff members and is visited by almost 200,000 visitors annually.

15

WHY FLAGSTAFF? | WORLD-CLASS ATTRACTIONS

2017 Estimated Population 4,779 26,389 43,491 84,798

2022 Projected Population 5,028 27,401 45,128 87,768

2010 Census Population 4,706 26,338 41,365 79,027

2000 Census Population 3,937 24,802 38,129 64,021

Projected Annual Growth 2017 to 2022 1.0% 0.8% 0.8% 0.7%

Historical Annual Growth 2000 to 2017 1.3% 0.4% 0.8% 1.9%

2017 Median Age 29.8 33.7 32.9 30.8

2017 Estimated Households 1,864 9,994 16,993 30,159

2022 Projected Households 1,941 10,344 17,547 31,120

2010 Census Households 1,772 9,595 15,503 27,596

2000 Census Households 1,451 8,862 14,172 23,175

Projected Annual Growth 2017 to 2022 0.8% 0.7% 0.7% 0.6%

Historical Annual Growth 2000 to 2017 1.7% 0.8% 1.2% 1.8%

2017 Estimated White 62.3% 65.8% 68.9% 73.3%

2017 Estimated Black or African American 2.5% 2.2% 2.4% 2.3%

2017 Estimated Asian or Pacific Islander 1.2% 1.8% 2.1% 2.4%

2017 Estimated American Indian or Native Alaskan 12.5% 10.3% 9.2% 7.4%

2017 Estimated Other Races 21.5% 19.9% 17.4% 14.5%

2017 Estimated Hispanic 25.3% 22.6% 20.1% 17.6%

2017 Estimated Average Household Income $70,633 $87,088 $79,697 $77,006

2017 Estimated Median Household Income $59,011 $68,370 $63,176 $61,551

2017 Estimated Per Capita Income $27,568 $33,101 $31,449 $28,017

2017 Estimated Total Businesses 332 1,473 3,150 4,389

2017 Estimated Total Employees 4,171 14,600 32,776 47,059

2017 Estimated Employee Population per Business 12.6 9.9 10.4 10.7

2017 Estimated Residential Population per Business 14.4 17.9 13.8 19.3

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1 Mile 3 Mile 5 Mile 10 MileThe Marketplace - Flagstaff, AZ

©2017, Sites USA, Chandler, Arizona, 480-491-1112 page 1 of 1 Demographic Source: Applied Geographic Solutions 04/2017, TIGER Geography

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WHY FLAGSTAFF? | DEMOGRAPHICS

PRICING ANALYSIS

FLAG

STAF

F MAL

L

280 Employees

DevelopablePad

DevelopablePad Developable

Pad

GardenCenter

Opening 1Q 2018

E. Railhead AvenueTest Drive

S. Mall W

ay

107 106 105 104 103 102

101

PAD 5

E. Marketplace Drive

US HIGHWAY 66

FlagstaffAuto Center

Ste Tenant SF101 The Home Depot 121,001102 Cost Plus World Market 18,289103 Bealls Outlet 25,037104 Old Navy 14,910105 Best Buy 30,000106 Marshall’s 28,000107 Tuesday Morning 15,251PAD05 Petco 15,534

SITE PLAN NOT TO SCALE18

PRICING ANALYSIS | SITE PLAN

101 121,001 45% $19,617 $0.16 $235,404 $1.95 11% Feb-2018 7% $20,990 $0.17 $251,880 $2.08 PTAX 11/8/2007 1/31/2028 $0.15 6 (5-year)Feb-2023 7% $22,459 $0.19 $269,508 $2.23 direct on sub-parcel 7% increase each option

102 Cost Plus World Market 18,289 7% $22,480 $1.23 $269,763 $14.75 12% - - - - - - PTAX: Prorata 3/4/2008 1/31/2019 $1.25 3 (5-year)Opt 1: $24,735/moOpt 2: $27,205/moOpt 3: $29,917/mo

103 Bealls Outlet 25,037 9% $18,750 $0.75 $225,000 $8.99 10% Jan-2023 11% $20,833 $0.83 $250,000 $9.99 Gross 10/1/2017 9/30/2027 $0.75 3 (5-year)estimated estimated

104 Old Navy 14,910 6% $9,819 $0.66 $117,832 $7.90 5% - - - - - - Gross 10/18/2007 1/31/2019 $1.25 None

105 Best Buy 30,000 11% $41,250 $1.38 $495,000 $16.50 23% Feb-2018 -5% $39,375 $1.31 $472,500 $15.75 PTAX: Prorata 10/5/2007 1/31/2023 $1.25 2 (5-year)3x CPI, max 10%

106 Marshall's 28,000 10% $31,500 $1.13 $378,000 $13.50 17% Feb-2018 4% $32,667 $1.17 $392,000 $14.00 PTAX: Prorata 10/4/2007 1/31/2021 $1.25 1 (2-year) and 3 (5-year)

Opt 1: $32,667/moOpt 2: $33,383/moOpt 3: $35,000/moOpt 4: $36,166/mo

107 Tuesday Morning 15,251 6% $10,688 $0.70 $128,256 $8.41 6% Gross 4/5/2011 1/31/2022 $1.25 1 (5-year)Opt 1: $11,959/mo

PAD05 Petco 15,534 6% $25,994 $1.67 $311,923 $20.08 14% Feb-2018 10% $28,595 $1.84 $343,140 $22.09 PTAX: Prorata 10/24/2007 1/31/2023 $1.25 1 (5-year)$31,455/month

Total Occupied 268,022 100% $180,098 $0.67 $2,161,177 $8.06 100%Total Vacant 0 0% $0 $0 0%

Total / Wtd. Avg: 268,022 100% $180,098 $0.67 $2,161,177 $8.06 100%

Suite # Tenant Size (SF)

% of Total (SF)

CAM: $3.06/SF; 4% annual increases

CAM: $2.66/SF; lesser of 2.5 times % incr of CPI or 5%

Monthly$/SF

MonthlyRent$/SF

% of Total (Rent)

Current Monthly

Rent

CAM Recovery Type

LeaseStartDate

LeaseExpiration

Date

Market Rent

($/SF/Mo)Lease Options

CurrentAnnual

Rent

AnnualRent$/SF

Rental IncreasesIncrease

Date Increase MonthlyRent

Opt 1: $22,500/moOpt 2: $24,300/moOpt 3: $26,244/mo

The Home Depot (Ground Lease)

AnnualRent

Annual$/SF

CAM: $3.16/SF; lesser of 3 times the % incr of CPI or 4%

CAM: $1.50/SF; lesser of 2.5 times % incr of CPI incr or

The above information has been obtained from sources we believe to be reliable, however we cannot accept responsibility for its correctness.

19

PRICING ANALYSIS | RENT ROLL

1 2 3 4 5 6 7 8 9 10 11 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11

For the Years Ending Dec-2018 Dec-2019 Dec-2020 Dec-2021 Dec-2022 Dec-2023 Dec-2024 Dec-2025 Dec-2026 Dec-2027 Dec-2028 ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ Potential Gross Revenue Base Rental Revenue $2,197,113 $2,328,341 $2,339,973 $2,339,973 $2,458,421 $2,573,754 $2,640,118 $2,654,105 $2,654,105 $2,665,542 $2,705,545 Absorption & Turnover Vacancy - ($115,180) - - ($42,913) - - - - - ($52,191) ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ Scheduled Base Rental Revenue $2,197,113 $2,213,161 $2,339,973 $2,339,973 $2,415,508 $2,573,754 $2,640,118 $2,654,105 $2,654,105 $2,665,542 $2,653,354 Expense Reimbursement Revenue $329,497 $357,934 $395,499 $408,453 $456,615 $486,550 $503,218 $520,318 $538,123 $556,668 $563,757

___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ Total Potential Gross Revenue $2,526,610 $2,571,095 $2,735,472 $2,748,426 $2,872,123 $3,060,304 $3,143,336 $3,174,423 $3,192,228 $3,222,210 $3,217,111 General Vacancy (1) $0 ($6,540) ($124,180) ($124,827) ($90,245) ($139,613) ($143,691) ($145,245) ($146,136) ($147,635) ($96,934) ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ Effective Gross Revenue $2,526,610 $2,564,555 $2,611,292 $2,623,599 $2,781,878 $2,920,691 $2,999,645 $3,029,178 $3,046,092 $3,074,575 $3,120,177 ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ Operating Expenses Property Taxes $148,842 $150,330 $151,834 $153,352 $154,886 $156,434 $157,999 $159,579 $161,175 $162,786 $164,414 Insurance $27,902 $28,460 $29,029 $29,610 $30,202 $30,806 $31,422 $32,051 $32,692 $33,345 $34,012 CAM $205,830 $209,947 $214,146 $218,428 $222,797 $227,253 $231,798 $236,434 $241,163 $245,986 $250,906 Management $75,798 $76,937 $78,339 $78,708 $83,456 $87,621 $89,989 $90,875 $91,383 $92,237 $93,605 Ground Rent $71,327 $74,722 $148,722 $148,722 $148,722 $148,722 $148,722 $149,424 $163,649 $163,649 $163,649 ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ Total Operating Expenses $529,699 $540,396 $622,070 $628,820 $640,063 $650,836 $659,930 $668,363 $690,062 $698,003 $706,586 ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ Net Operating Income $1,996,911 $2,024,159 $1,989,222 $1,994,779 $2,141,815 $2,269,855 $2,339,715 $2,360,815 $2,356,030 $2,376,572 $2,413,591 ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ Leasing & Capital Costs Tenant Improvements - $298,200 - - $38,128 - - - - - Leasing Commissions - $145,368 - - $88,246 - - - - - ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ Total Leasing & Capital Costs - $443,568 - - $126,374 - - - - -

___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ Cash Flow Before Debt Service $1,996,911 $1,580,591 $1,989,222 $1,994,779 $2,015,441 $2,269,855 $2,339,715 $2,360,815 $2,356,030 $2,376,572

=========== =========== =========== =========== =========== =========== =========== =========== =========== =========== Debt Service ($1,132,138) ($1,132,138) ($1,132,138) ($1,132,138) ($1,132,138) ($1,132,138) ($1,132,138) ($1,132,138) ($1,132,138) ($1,132,138)

___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ Cash Flow After Debt Service $864,773 $448,453 $857,084 $862,641 $883,303 $1,137,717 $1,207,577 $1,228,677 $1,223,892 $1,244,434

=========== =========== =========== =========== =========== =========== =========== =========== =========== =========== Occupancy TrendsAverage Physical Occupancy 268,022 265,537 268,022 268,022 265,480 268,022 268,022 268,022 268,022 268,022Average Physical Occupancy - % 100.00% 99.07% 100.00% 100.00% 99.05% 100.00% 100.00% 100.00% 100.00% 100.00%

Cap Rate 7.50% 7.61% 7.48% 7.50% 8.05% 8.53% 8.80% 8.88% 8.86% 8.93%Cash/Cash 10.84% 5.62% 10.74% 10.81% 11.07% 14.26% 15.13% 15.40% 15.34% 15.59%

Pricing Potential 1st New Loan SalePurchase Price $26,600,000 Loan Amount: $18,620,000 70% Exit Price $30,169,888Price PSF $99 Payment (monthly): ($94,345) Exit Cap 8.00%Year 1 Cap Rate 7.5% Interest Rate: 4.50% Loan Balance at Sale $14,913,000Year 1 Cash on Cash 10.84% Amortization Period: 30 yearsLeveraged IRR (10-Year) 15.75% Maturity: 10 years

IRR Multiple Down Payment Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 1015.75% 3.16 ($7,980,000) $864,773 $448,453 $857,084 $862,641 $883,303 $1,137,717 $1,207,577 $1,228,677 $1,223,892 $16,501,322

(1) 5% General Vacancy excluding Home Depot commencing Year 2(2) Outstanding Loan Balance at time of sale

The above information has been obtained from sources we believe to be reliable, however we cannot accept responsibility for its correctness.

20

PRICING ANALYSIS | CASH FLOW ANALYSIS

INCOME 1. Base Rental Revenue: Projected based on the terms of in-place tenant leases and the following assumptions:

a. Speculative Lease Terms: See specific assumptions b. Rental Abatements: None c. Renewal Options: All tenant options exercised d. Growth rates: All expenses are projected to increase at 2% annually and property tax at 1% annually e. Market rent growth: All market rents are projected to increase at 3% annually f. Market Rent: See Rent Roll.

2. Expense Reimbursement Revenue: Per 2016 Occupancy Schedule; see rent roll for any fixed CAM amounts and annual increases. Home Depot (121,001 SF) is excluded from the CAM expense recovery calculations.

3. General Vacancy: A loss provision for vacancy is modeled at 5% excluding Home Depot beginning in Year 2 of the analysis EXPENSES 4. Operating expenses have been estimated based on a 2017 Operating Budget 5. Management fee calculated as 3% of Effective Gross Revenue 6. Property taxes based on the 2018 Coconino County reported assessed value of $8,637,318 with an applied millage rate of

9.56736% per the 2016 Coconino County property tax bill. Home Depot pays property tax directly to the tax authority for parcel number 11382014

SPECIFIC ASSUMPTIONS 7. Old Navy: Tenant pays percentage rent in lieu of fixed minimum rent which is 4% of gross sales. Total reported sales from

August 2016 to July 2017 was $2,945,817 and rent payments are estimated at $9,819 per month. Upon lease expiration as of Jan 31st, 2019; tenant is assumed to vacate. Analysis assumes 6 months of downtime and a new tenant to occupy the space August 1, 2019 at $1.25 NNN market rent with $20 TI’s and 6% LCs; 10 year term

GROUND LEASE 8. Property is subject to a Ground Lease with the State of Arizona through December 15, 2098 which covers 28.89 acres as

referenced in Commercial Lease No. 03-104732-99. The current ground rent payment is $71,326.90 which is payable on December 16, 2017 in advance of the lease year ending December 15, 2018. The ground rent payment is set to increase on December 16, 2019 and increase by 10% every 5th Lease Year. Beginning in Lease Year 26 (12/16/2024 to 12/15/2025), Lessee shall have the right to have the base rent adjusted to 8.25% of the fair market value as appraised based upon the highest and best use as unimproved and unencumbered land; which is then increased by 10% every 5 years pursuant to Section 4.11 of the Lease. The aforementioned adjustment of rent may be exercised by the Lessee no more frequently than once every 10 years.

Summary of Acreage Autopark 60.82 56.7% Vintage Partners (Harkin's) 17.6 16.4% Flagstaff Marketplace 28.89 26.9%

Total 107.31

The cash flow period begins January 2018 and presents a 10-year fiscal analysis ending December 2028. The cash flow has been prepared using ARGUS v15 software. A copy of the file is available for your review. Expense and revenue assumptions are based upon operating statements, rent rolls, and other schedules provided by the current owner.

21

PRICING ANALYSIS | CASH FLOW ASSUMPTIONS

TENANT SYNOPSIS

23

HOME DEPOTThe Home Depot, Inc. operates as a home improvement retailer. It primarily serves home owners; and professional renovators/remodelers, general contractors, handymen, property managers, building service contractors, and specialty tradesmen, such as installers. It operates through approximately 2,278 stores, including 1,977 in the United States, Puerto Rico, and the territories of the U.S. Virgin Islands and Guam; 182 in Canada; and 119 in Mexico. The Home Depot, Inc. was founded in 1978 and is based in Atlanta, Georgia.

Company Type: Public (NYSE: HD)

2017 Employees: 406,000

2017 Net Income: $7.96 Billion

2017 Equity: $4.33 Billion

Fiscal Year End: February

2017 Revenue: $94.60 Billion

2017 Assets: $42.97 Billion

S&P Ranking: A

Website: www.homedepot.com

COST PLUS, INC.Cost Plus, Inc. incorporated in 1958 as the first store in San Francisco’s famed Fisherman’s Wharf and called it Cost Plus World Market. Its everyday low prices and high-quality, original items are a great value. The items include an awe-inspiring array of international foods and wines, and much more. There are over 259 Cost Plus World Market stores nationwide. Cost Plus World Market has two distribution centers (DCs), located in Stockton, California, and Windsor, Virginia. It’s in these facilities that merchandise is received from around the world and then distributed to stores across the country.

Company Type: Subsidiary Website: www.worldmarketcorp.com

BED BATH & BEYONDBed Bath & Beyond Inc., together with its subsidiaries, operates a chain of retail stores. As of February 25, 2017, the company had a total of 1,546 stores, includes 1,023 Bed Bath & Beyond stores in 50 states, the District of Columbia, Puerto Rico, and Canada; 276 stores under the names of World Market, Cost Plus World Market, or Cost Plus; 113 buybuy BABY stores in 35 states and Canada; 80 stores under the CTS name; and 54 stores under the Harmon name. Bed Bath & Beyond Inc. was founded in 1971 and is based in Union, New Jersey.

Company Type: Public: (NASDAQ: BBBY)

2017 Employees: 65,000

2017 Net Income: $685.12 Billion

2015 Equity: $2.72 Billion

Website: www.bedbathandbeyond.com

Fiscal Year End: February

2017 Revenue: $12.22 Billion

2017 Assets: $6.85 Billion

S&P Ranking: BBB+

TENANT SYNOPSIS | HOME IMPROVEMENT, DAILY NEEDS & DISCOUNT RETAILERS

24

THE TJX COMPANIES, INC.The TJX Companies, Inc. operates as an off-price apparel and home fashions retailer in the United States and internationally. It operates stores under the T.J. Maxx, Marshalls, HomeGoods, Winners, HomeSense, T.K. Maxx, and Sierra Trading Post names. As of January 28, 2017, the company operated a total of 3,812 stores in 9 countries, including the United States, Canada, the United Kingdom, Ireland, Germany, Poland, Austria, the Netherlands, and Australia. The TJX Companies, Inc. was founded in 1956 and is based in Framingham, Massachusetts.

Company Type: Public (NYSE: TJX)

2017 Employees: 235,000

2017 Net Income: $2.30 Billion

2017 Equity: $4.51 Billion

Fiscal Year End: January

2017 Revenue: $33.18 Billion

2017 Assets: $12.88 Billion

S&P Ranking: A+

Website: www.tjx.com

MARSHALLSMarshalls, Inc., is a chain of American and Canadian off-price department stores owned by TJX Companies. Marshalls has over 975 American stores, including larger stores named Marshalls Mega Store, covering 42 states and Puerto Rico, and 38 stores in Canada. Marshalls is the U.S.’s second largest off-price family apparel and home fashion retailer, behind its sister company, T.J. Maxx.

Company Type: Subsidiary

Website: www.marshallsonline.com

TUESDAY MORNINGTuesday Morning Corporation operates as a retailer of upscale decorative home accessories, housewares, seasonal goods, and gifts in the United States. The company offers various products, such as home décor, furniture, bed and bath, kitchen, toys, crafts, pets, and seasonal goods, as well as home furnishings items. It also provides a range of branded merchandise, including Peacock Alley, Sferra, Lenox, Waterford, and Hartmann. The company operated 750 discount retail stores in 41 states. Tuesday Morning Corporation was founded in 1974 and is headquartered in Dallas, Texas.

Company Type: Public (NASDAQ: TUES)

2016 Employees: 1,934

2016 Net Income: $3.71 Million

2016 Equity: $227.28 Million

Fiscal Year End: June

2016 Revenue: $956.40 Million

2016 Assets: $3361.97 Million

Website: www.tuesdaymorning.com

TENANT SYNOPSIS | HOME IMPROVEMENT, DAILY NEEDS & DISCOUNT RETAILERS (CONT.)

25

OLD NAVYOld Navy, founded in 1994 is a popular American clothing and accessories retailer owned by American multinational corporation Gap Inc. Old Navy makes current American fashion essentials accessible for every family. As one of the largest apparel brands in the world, the company offers the customers fabulous fashion online as well in 1,000+ stores around the world. In 1997, became first retailer to reach $1 billion in annual sales in less than four years of operation. Old Navy is a place where everything has great style and quality and the shopping experience is actually fun, not a chore.

Company Type: Subsidiary

Website: www.oldnavy.gap.com

THE GAP, INC.The Gap, Inc. operates as an apparel retail company worldwide. It provides apparel, accessories, and personal care products for men, women, and children under the Gap, Banana Republic, Old Navy, Athleta, and Intermix brands. It has franchise agreements with unaffiliated franchisees to operate Gap, Banana Republic, and Old Navy stores in Asia, Australia, Europe, Latin America, the Middle East, and Africa. As of March 14, 2017, the company operated 3,200 company-operated stores; and 450 franchise stores. The Gap, Inc. was founded in 1969 and is headquartered in San Francisco, California.

Company Type: Public: (NYSE: GPS)

2017 Employees: 135,000

2017 Net Income: $676.00 Million

2017 Equity: $2.90 Billion

Fiscal Year End: January

2017 Revenue: $15.52 Billion

2017 Assets: $7.61 Billion

S&P Ranking: BB+

Website: www.gapinc.com

PETCOPetco is a leading pet specialty retailer that focuses on nurturing powerful relationships between people and pets. The Company provides the products, services, advice and experiences that keep pets physically fit, mentally alert, socially engaged and emotionally happy. Everything they do is guided by the vision for Healthier Pets. Happier People. Better World. The company operate more than 1,400 Petco locations across the U.S., Mexico and Puerto Rico, including more than 120 Unleashed by Petco locations.

Company Type: Subsidiary

Locations: 1,400+

Website: www.petco.com

BEST BUYBest Buy Co., Inc. operates as a retailer of technology products, services, and solutions in the United States, Canada, and Mexico. The company offers its products through stores under the brand names Best Buy, Best Buy Mobile, Best Buy Direct, Best Buy Express, Geek Squad, Magnolia Home Theater, and Pacific Kitchen & Home. It has approximately 1,200 large-format and 400 small-format stores. Best Buy Co., Inc. was founded in 1966 and is headquartered in Richfield, Minnesota.

Company Type: Public: (NYSE: BBY)

2017 Employees: 125,000

2017 Net Income: $1.23 Billion

2017 Equity: $4.71 Billion

Fiscal Year End: January

2017 Revenue: $39.40 Billion

2017 Assets: $13.86 Billion

S&P Rating: BBB-

Website: www.bestbuy.com

TENANT SYNOPSIS | HOME IMPROVEMENT, DAILY NEEDS & DISCOUNT RETAILERS (CONT.)

LEASE ABSTRACTS

Tenant and Landlord Information SectionLease Type (Ground/Lease): Commercial Lease No. 03-104732 & 03-117896Tenant (signing entity): Lease, pg. 1Doing Business As (Business Name): N/AGuarantor: N/ALandlord: Lease, pg. 1Address/Suite #: Lease, sec 1.16 & 2.1 & Exhibit B, pg. 2Lease Dates, Term and PremisesLease Execution Date: Lease, pg. 53Lease Commencement Date: Lease, sec 3.1Rent Commencement Date: Lease, sec 4.1Term: Lease, sec 3.1 & Exhibit B, pg. 2Expiration Date: Lease, sec 3.1Premises RSF: Lease, sec 2.1 & Amend dated 04/07/2015, sec 2

& Exhibit B, pg 2

Pro Rata Share: N/ARent and Additional Rent

Adjusted Base Rent:

Lease Year Start Date End Date AcresBase Rent 107.31

Acres

(A) Flagstaff Marketplace (28.89 Acres)

(B) % of Adjusted Base Rent Payable

(4.4,b,v) Actual Rent

Lease, sec 3.1, 4.1, 4.2, 4.3 & 4.4 & Amend dated 04/07/2015, Exhibit B

17-20 12/16/2015 12/15/2019 28.89 $264,939 $71,327 100.0% $71,32721-25 12/16/2019 12/15/2024 28.89 $582,866 $156,919 94.8% $148,77226-30 12/16/2024 12/15/2029 28.89 $641,153 $172,611 94.8% $163,64931-35 12/16/2029 12/15/2034 28.89 $705,268 $189,872 94.8% $180,01436-40 12/16/2034 12/15/2039 28.89 $775,795 $208,859 94.8% $198,01541-45 12/16/2039 12/15/2044 28.89 $853,374 $229,745 94.8% $217,81746-50 12/16/2044 12/15/2049 28.89 $938,711 $252,720 94.8% $239,59851-55 12/16/2049 12/15/2054 28.89 $1,032,583 $277,992 94.8% $263,55856-60 12/16/2054 12/15/2059 28.89 $1,135,841 $305,791 94.8% $289,91461-65 12/16/2059 12/15/2064 28.89 $1,249,425 $336,370 94.8% $318,90566-70 12/16/2064 12/15/2069 28.89 $1,374,367 $370,007 94.8% $350,79671-75 12/16/2069 12/15/2074 28.89 $1,511,804 $407,008 94.8% $385,87676-80 12/16/2074 12/15/2079 28.89 $1,662,985 $447,709 94.8% $424,46381-85 12/16/2079 12/15/2084 28.89 $1,829,283 $492,480 94.8% $466,91086-90 12/16/2084 12/15/2089 28.89 $2,012,211 $541,728 94.8% $513,60091-95 12/16/2089 12/15/2094 28.89 $2,213,432 $595,900 94.8% $564,96196-99 12/16/2094 12/15/2098 28.89 $2,434,776 $655,490 94.8% $621,457

Periodic Adjustment of Base Rent: Lease, sec 4.4 (a) & (b) See Exhibit B

Adjustment of RentAdjustment of Rent by Appraisal: Lease, sec 4.11

Railhead Associates: 107.310 AcresAutopark: 60.82 AcresVintage Partners: 17.60 AcresFlagstaff Marketplace: 28.89 AcresNone

(A) As of fourth Adjustment Date (Lease Yr 21), Base Rent to be adjusted to $582,865.94. As of fifth Adjustment Date (Lease Yr 26) and each adjustment date thereafter; adjusted base rent shall be determined by multiplying the rent in effect for the prev period by 110%. (B) Following Lease Yr 20, the product derived from multiplying the adjusted base rent by a fraction in which numerator equals Parcel's total building area and denominator equals net land area of parcel, provided that actual rent shall never be less than 50% of adjusted base rent.

Not more than 360 days nor less than 210 days prior to the beginning of the 26th Lease Year or any succeeding Adjustment Date, and no more frequently than once every 10 Lease Years, Lessee shall have the right to have the Adjusted Base Rent adjusted to an amount equal to 8.25% of the then fair market value of the Parcel, subject to the following provisions and limitations: Parcel to be appraised based upon its highest and best use as unimproved and unencumbered land. If the amount equal to 8.25% of the then fair market value of the Parcel, as set forth in Exhibit "B" and exclusive of Percentage Rent, then such amount shall be the new Adjusted Base Rent. Under no circumstance, shall the new Adjusted Base Rent established through the appraisal process for the entire Parcel be less than the greater of $582,865 or the Adjusted Base Rent scheduled for the Lease Year commencing 20 years prior to the upcoming Lease Year or a ratable portion thereof if any Development Parcel(s) has been assigned.

12/15/2098

Ground LeaseRailhead Associates, LLCFlagstaff - The MarketplaceNoneState of ArizonaBetween Highway 66 & I-40 E. of Flagstaff Mall, Flagstaff, AZ

Landlord: 04/04/2000 - Tenant: 03/24/200012/16/199912/16/199999 Years

27

LEASE ABSTRACTS | GROUND LEASE ABSTRACT

Outline for Percentage Rent CalculationTotal Collected Receipts: Lease, sec 4.4(b) (x)

Adjusted Collected Receipts: Lease, sec 4.4 (b) (ii)Capital Expenses: Lease, sec 4.4 (b) (viii)

Return on Capital: Lease, sec 4.4 (b) (vii)

Excess Collected Receipts: Lease, sec 4.4 (b) (vi)Minimum Income:

Lease Year Beginning Ending

Retail (+ @ 3%) - Based on 28.89

Acres

Industrial (+ @ 2%) - Based on

28.89 Acres

Minimum Income (based on 28.89

Acres)

Amend dated 04/07/2015 Exhibit C: Minimum Income Schedule

18 12/16/2016 12/15/2017 $715,909 $83,289 $799,19819 12/16/2017 12/15/2018 $737,387 $84,954 $822,34120 12/16/2018 12/15/2019 $759,508 $86,653 $846,16221 12/16/2019 12/15/2020 $782,293 $88,386 $870,68022 12/16/2020 12/15/2021 $805,762 $90,154 $895,91623 12/16/2021 12/15/2022 $829,935 $91,957 $921,89224 12/16/2022 12/15/2023 $854,833 $93,796 $948,63025 12/16/2023 12/15/2024 $880,478 $95,672 $976,15126 12/16/2024 12/15/2025 $906,893 $97,586 $1,004,47827 12/16/2025 12/15/2026 $934,099 $99,538 $1,033,63728 12/16/2026 12/15/2027 $962,122 $101,528 $1,063,65129 12/16/2027 12/15/2028 $990,986 $103,559 $1,094,54530 12/16/2028 12/15/2029 $1,020,716 $105,630 $1,126,34631 12/16/2029 12/15/2030 $1,051,337 $107,743 $1,159,08032 12/16/2030 12/15/2031 $1,082,877 $109,897 $1,192,77533 12/16/2031 12/15/2032 $1,115,363 $112,095 $1,227,45934 12/16/2032 12/15/2033 $1,148,824 $114,337 $1,263,16235 12/16/2033 12/15/2034 $1,183,289 $116,624 $1,299,91336 12/16/2034 12/15/2035 $1,218,788 $118,957 $1,337,74437 12/16/2035 12/15/2036 $1,255,351 $121,336 $1,376,68738 12/16/2036 12/15/2037 $1,293,012 $123,762 $1,416,77439 12/16/2037 12/15/2038 $1,331,802 $126,238 $1,458,04040 12/16/2038 12/15/2039 $1,371,756 $128,762 $1,500,51941 12/16/2039 12/15/2040 $1,412,909 $131,338 $1,544,24742 12/16/2040 12/15/2041 $1,455,296 $133,964 $1,589,26143 12/16/2041 12/15/2042 $1,498,955 $136,644 $1,635,59944 12/16/2042 12/15/2043 $1,543,924 $139,377 $1,683,300

45 12/16/2043 12/15/2044 $1,590,242 $142,164 $1,732,406>>>>>Year 46-99

See Exhibit C

Total Reciepts less Taxes as follows: (A) all cash revenues received by Lessee in respect of all activities conducted in the ordinary course of Lessee's business at, within or from any part of the Premises; and (B) all cash revenues received by Lessee in respect of approved subleases of all or any portion of the Premises, but excluding amounts received as reimbursements for property taxes, rental taxes and unapplied tenant security deposits. Total Collected Receipts do not include any amounts received by Lessee from activities not in the ordinary course of business, including, but not necessarily limited to, financing proceeds, insurance proceeds, condemnation awards, interest income, assignment proceeds, bulk sales of personal property, etc.

Total Collected Receipts minus Return on Capital (15% X Capital Expenses)Shall include all payments made by Lessee (net of reimbursements from sublessees or any governmental entity of sums which would otherwise qualify as part of Lessee's Total Capital Expenditure) for the purpose of acquiring, constructing or replacing fixed assets, real property, or equipment for placement on the Parcel, and which, in accordance with generally accepted accounting principles, would constitute or be added to the book value of Lessee's capital investment in the Parcel, including, but not necessarily limited to, amounts paid or payable for interest payments, leasing commissions, tenant improvements, tenant allowances, legal and other professional fees, labor and materials, and amounts paid under a conditional sale or other periodic payment arrangement which is of such a nature that the payment obligations of the obligor would be required by generally accepted accounting principles.

15% of the Total Capital Expenditures during the Lease Year, which amount is then applied to reduce Total Collected Receipts for a 25 year period for purposes of calculating adjusted collected receipts. For example: if the total Capital Expenditure was $100, the Return on Capital for that Lease Year would be $15; that $15 amount would then be applied to reduce the Total Collected Receipts for 25 years. In subsequent years, if the Total Capital Expenditure was $150, the Return on Capital for that year would be $37.50 ($15 from the prior Lease Year + $22.50 for the current Lease Year)

Adjusted Collected Receipts minus Minimum Income (Exhibit C) below:

28

LEASE ABSTRACTS | GROUND LEASE ABSTRACT (CONT.)

Percentage Rent:

Maximum Percentage Rent:

Lease, sec 4.4(b), (e), (g) & (h) & Exhibit B, pg. 2 & 3

Lease, sec 4.4(b) (e)

Percentage Rent Statement (Reporting): Lease, sec 4.4(d)Lessor's Right to Release: Lease, sec 4.12

Expense Recovery/Non-Recovery and ResponsibilitiesProperty Taxes: Lease, sec 5.5

Property Tax Cap: N/AInsurance: Lease, sec 11.2

Lease, sec 11.3

Utilities: N/ACAM: N/AManagement Fees/ Admin Fees: N/AExpense Caps: N/ATenant Maintenance Responsibilities: Lease, sec 6.17Landlord Maintenance Responsibilities: Lease, sec 6.17

MiscellaneousCo-Tenancy: N/AExclusive Use: N/ATermination Right: Lease, sec 6.6

Lease, sec 22.1

First Right of Refusal/Right of First Offer: N/ARelocation Rights: N/ASublease/Assignments: Lease, sec 1.28 & 14.2(a)

Lease, sec 14.5

If Tenant is unable to obtain the Approved Zoning prior to the end of the third 3rd Lease Year, or if Tenant discovers or encounters any other conditions or circumstances which render infeasible development of the Parcel in accordance with the Approved Parcel Development Plan, then Tenant may elect to terminate the Lease by written notice to the other party.

The Lease may be terminated as to all or part of the Parcel prior to the Expiration Date upon written agreement signed by both Landlord and Tenant.

NoneNoneNot permitted to assign either (I) all of the Parcel, or (b) one or more Development Parcels without the prior written approval of Landlord, which approval will not be unreasonably withheld or delayed, subject to conditions set forth in section 14.2(a).

Not permitted to sublease all or portions of the Premises without the prior written approval of Landlord, which approval will not be unreasonably withheld or delayed, provided the conditions in section 14.5 are satisfied.

Space Leases of 10,000 SF or less will not require Landlord's prior written approval, subject to conditions set forth in section 14.5(g).

None

Commencing with Lease Year 21, in any Lease Year in which the Actual Rent paid by Lessee is less than the Adjusted Base Rent scheduled for that Lease Year, Lessor shall have the right to re-lease any portion of the Parcel. Lessee shall have the right to match the highest and best bid submitted at any auction of a long-term lease of such portion of the Parcel or, should the auction of long term leases no longer be required by law, then Lessee shall have the right to match the highest and best offer submitted for a long-term lease of such portion of the Parcel. In the event any portion of the Parcel is so re-leased, whether to a third party or to Lessee if Lessee matches the highest and best bid, the portion of the Parcel so re-leased shall be subtracted from the remainder of the Parcel, Adjusted Base Rent for the remainder of the Parcel shall be reduced on a pro rata basis with Exhibit "B" being modified.

Tenant will pay all duties, taxes, charges, assessments, impositions and payments, imposed upon, charged against, measured by or become a lien on any part of the Premises.

NoneTenant to maintain a policy or policies of commercial general liability insurance including property damage.

The minimum amount of coverage will be adjusted upward on Landlord's reasonable request to be made no more frequently than once every 2 years so that such respective minimum amounts of coverage will not be less than the amounts then required by statute or generally carried on similarly improved real estate in the County, whichever is greater.

NoneNoneSilentNoneTenant to keep and maintain the Premises in good order, condition and repair.None

None

Within 180 days of each anniversary of the Commencement Date.

1% of Excess Collected Receipts

CAP of 5% of the Adjusted Base Rent for the period immediately preceding most recent Adjustment Date

29

LEASE ABSTRACTS | GROUND LEASE ABSTRACT (CONT.)

532 SUTTER18301 Von Karman Avenue, Suite 800Irvine, CA 92612Phone: (949) 221-1800 Fax: (949) 221-1830www.farislee.com

EXCLUSIVE INVESTMENT ADVISOR:

4751 E. MARKETPLACE DRIVE, FLAGSTAFF, AZ 86004

The information contained herein has been carefully compiled from sources we consider reliable, and while not guaranteed as to completeness or accuracy, we believe it to be correct as of this date. The proforma revenues and expenses set forth in this brochure do not constitute a representation, warranty, or guaranty of any of the numbers set forth herein or of any economic value attributable to the property or income that may be derived therefrom. Independent estimates of proforma revenues and expenses should be developed before any decision is made on whether to invest in the property. Buyer to verify square footage of building, and the potential for adding additional floors.

Donald MacLellanSenior Managing Partnerdmaclellan@farislee.com(949) 221-1821R.E. License No. 0897784

BROKER OF RECORD:

Kalen RickardSenior Vice PresidentCBC Advisorskalen.rickard@cbcadvisors.com(602) 910-6486 AZ Broker License No. LC659198000