LAPALCO BLVD AT ALEX KORNMAN BLVD

C O N F I D E N T I A L O F F E R I N G M E M O R A N D U M

LAPALCO BLVD AT ALEXKORNMAN BLVD

HARVEY, LA

REDEVELOPMENT OPPORTUNITY

33 New Montgomery Street, Suite 1230San Francisco, CA 94105

TEL 415.765.6900www.s ta rboardne t . com

LOUIS CORNEJO

[email protected]

415.956.2003 fax

NEW ORLEANS, METROPOLITAN AREA

PRICE REDUCTION — 10.5% CAP RATE

Confidentiality Agreement

THIS CONFIDENTIAL PROPERTY INFORMATION PACKAGE (the “Package”) is intended solely foryour own limited use in considering the pursuit of negotiations to acquire 2100 Alex KornmanBoulevard (the “Property”), located in Harvey, LA, and is not intended to be an offer for the saleof the Property. Starboard TCN has prepared this confidential Package, which contains brief,selected information pertaining to the business and affairs of the Property. Any informationcontained herein is obtained from sources considered reliable. However, neither the Owner norStarboard TCN purport this Package to be all-inclusive or to contain all the information aprospective purchaser may desire. In addition, neither the Owner nor Starboard TCN isresponsible for any mis-statement of facts, errors, omissions, prior sale, withdrawal from market, orchange in terms, conditions or price without notice.

The information supplied herein is for informational purposes only and neither the Owner, norStarboard TCN, make any representation or warranty, expressed or implied, as to the accuracy orcompleteness of this confidential Package or its contents, and no legal liability is assumed orimplied with respect thereto. Any person or firm intending to rely upon the information hereinshould verify said information independently. By acknowledgment of your receipt of this Package,you agree that: its contents are confidential; you will hold and treat it in the strictest of confidence;you will not, directly or indirectly, disclose or permit anyone else to disclose this Package or itscontents to any person, firm, or entity without prior written authorization of Starboard TCN you willnot use or permit this Package or its contents to be used in any fashion or manner detrimental tothe interest of the Owner of the Property

PHOTOCOPYING OR OTHER DUPLICATION OF ANY PART OF THIS PACKAGE IS STRICTLYPROHIBITED. THE OWNER OF THE PROPERTY EXPRESSLY RESERVES THE RIGHT AT ITS SOLEDISCRETION TO REJECT ANY OR ALL PROPOSALS OR EXPRESSIONS OF INTEREST IN THEPROPERTY AND TO TERMINATE DISCUSSIONS WITH ANY PARTY AT ANY TIME WITH ORWITHOUT NOTICE. THIS PACKAGE SHALL NOT BE DEEMED A REPRESENTATION OF THE STATEOF AFFAIRS OF THE PROPERTY NOR CONSTITUTES AN INDICATION THAT THERE HAS BEENNO CHANGE IN THE BUSINESS OR AFFAIRS OF THE PROPERTY SINCE THE DATE OFPREPARATION OF THIS PACKAGE. THE PROPERTY WILL BE SOLD ON AN “AS-IS, WHERE-IS”BASIS WITHOUT REPRESENTATION OR WARRANTY.

If you do not wish to pursue negotiations leading to the acquisition of the Property, or if youdiscontinue such negotiations, you agree to return this confidential Package to Starboard TCN. Ifyou do not agree to abide by the terms stipulated in this Statement, please return this Package toStarboard TCN prior to your review of the information contained herein.

Confidential Offering Memorandum i

The information has been secured by Starboard TCN from sources believed to be reliable. It is not guaranteed, however, and should be verified prior to consummating any transaction.

33 New Montgomery Street, Suite 1230San Francisco, CA 94105

Phone: 415-438-2144 • Fax: 415-956-2003 • www.starboardnet.com

Table of Contents

SECTION 1 - Pricing & Financial Analysis

Financial SummaryTenant Profile

Investment Overview

SECTION 2 - Property Description

Location OverviewFloor Plan

Area Retailers Map

SECTION 3 - Demographic Analysis

Confidential Offering Memorandum ii


Financial Summary

SUMMARY

Premises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2100 Alex Kornman Blvd, Harvey, LA

Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $7,295,000 $5,700,000

Rentable Square Feet . . . . . . . . . . . . . . . . . . . . ±111,000

Price/Square Foot . . . . . . . . . . . . . . . . . . . . . . $65.72

CAP Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.33% 10.5%

Year Built . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1984

Lot Size . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.03 Acres

Type of Ownership . . . . . . . . . . . . . . . . . . . . . Fee Simple

Stories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . One

TENANT SUMMARY

Tenant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Wal-mart — S&P AA rating

Lease Guarantor . . . . . . . . . . . . . . . . . . . . . . . Wal-mart Stores, Inc.

Lease Type . . . . . . . . . . . . . . . . . . . . . . . . . . . Absolute Triple-Net (NNN)

Roof and Structure . . . . . . . . . . . . . . . . . . . . . . Tenant Responsible

Lease Term . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Years

Lease Expiration . . . . . . . . . . . . . . . . . . . . . . . 01/31/2012

Term Remaining on . . . . . . . . . . . . . . . . . . . . . ±4 Years

ANNUALIZED OPERATING DATA

Base Rent ($5.47/SF) . . . . . . . . . . . . . . . . . . . . $607,478

Net Operating Income (NOI) . . . . . . . . . . . . . . . . $607,478

Confidential Offering Memorandum 1


Tenant Profile

Wal-Mart – S&P AA rating. $349B in sales, $16B net worth. Wal-Mart is the world’s largest retailer with2,250 Supercenters and 1,188 Wal-Mart Stores. NYSE: WMT

ABOUT WAL-MART

Many trace discount retailing´s birth to 1962, the first year of operation for Kmart, Target and Wal-Mart.But by that time, Sam Walton´s tiny chain of variety stores in Arkansas and Kansas was already facingcompetition from regional discount chains. Sam traveled the country to study this radical, new retailingconcept and was convinced it was the wave of the future. He and his wife, Helen, put up 95 percent ofthe money for the first Wal-Mart store in Rogers, Arkansas, borrowing heavily on Sam´s vision that theAmerican consumer was shifting to a different type of general store.

Today, Sam´s gamble is a global company with more than 1.9 million associates worldwide and morethan 7,000 stores and wholesale clubs across 14 markets.

But it all started with an understanding of what consumers want from a retailer.

While other discounters such as Kmart quickly expanded across the country in the 1960s, Sam was ableto raise the funds to build only 15 Wal-Mart stores. Wal-Mart got the boost it needed in 1970, when itsstock was offered for the first time on the New York Stock Exchange. The public offering created the capitalinfusion that grew the company to 276 stores by the end of the decade. By focusing on customerexpectations, Wal-Mart was growing rapidly in 11 states.

In the 1980s, Wal-Mart became one of the most successful retailers in America. Sales grew to $26 billionby 1989, compared to $1 billion in 1980. Employment increased tenfold. At the end of the decade therewere nearly 1,400 stores. Wal-Mart Stores, Inc. branched out into warehouse clubs with the first Sam'sClub in 1983. The first Supercenter, featuring a complete grocery department along with the 36departments of general merchandise, opened in 1988. Wal-Mart had become a textbook example ofmanaging rapid growth without losing sight of a company´s basic values. In Wal-Mart´s case, the basicvalue was, and is, customer service.

Ironically, technology plays an important role in helping Wal-Mart stay customer focused. Wal-Martinvented the practice of sharing sales data via computer with major suppliers, such as Proctor & Gamble.Every time a box of Tide is rung up at the cash register, Wal-Mart´s data warehouse takes note and knowswhen it is time to alert P&G to replenish a particular store. As a result, Wal-Mart stores rarely run out ofstock of popular items.





INVESTMENT HIGHLIGHTS

• Lease Guaranteed by Wal-Mart

Stores, Inc.

• Absolute Triple-Net (NNN) Lease

• ±4 Years Remaining on Lease

• 10.5 % CAP Rate

• Great Opportunity for investor/

developer to redevelop and add

value.

• Below market rents — $5.47 PSF

Investment OverviewStarboard TCN Retail Group is pleased to offer for sale an 111,000± square foot single story retail

building that is leased on an Absolute Triple Net (NNN) basis to Wal-mart Stores Inc. The subject property

is a “dark” Wal-mart Store, with a lease term that expires on January 31, 2012.

Wal-mart has relocated to a larger, Super Center format, one mile east, and has a large presence in the

area; five stores within a five-mile radius.

The subject property is well located within a major retail hub of the Greater New Orleans area.

This unique opportunity offers an investor the ability to take advantage of rental income while a re-

development and leasing strategy is implemented, with the potential to add tremendous value to the asset.



Location OverviewThe subject property is situated at the southwest corner of Lapalco Blvd and Alex Kornman Blvd in Harvey,

Louisiana.

Harvey is part of the Greater New Orleans Metropolitan area; on the West Bank of the Mississippi River.

Lapalco Blvd is the main retail corridor in the area, with major retailers including Home Depot, Wal-mart

Super Center, Winn-Dixie, Big Lots, Toys R Us, Office Depot, Chase Bank, Dollar Tree, Nissan, Ford,

Harley Davidson.

LOCATION HIGHLIGHTS

• Major retail corridor

• Located 20 Minutes from Downtown

New Orleans, Louisiana

• Harvey is a Thriving Suburb in the

New Orleans Metropolitan Area

• Average Traffic Count — ±50K

• Population in a three mile radius

— 88,348

• Average House Hold Income in a

three mile radius — $59,437

SUBJECT PROPERTY

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Demographics

Population 1-mi. 3-mi. 5-mi.2006 Population 9,613 88,348 191,675% 2006 Male Population 48.86% 48.13% 47.34%% 2006 Female Population 51.14% 51.87% 52.66%2006 Total Adult Population 6,950 64,006 140,8402006 Total Daytime Population 10,173 88,813 203,8102006 Total Daytime Work Population 5,071 41,456 95,9482006 Median Age Total Population 33 34 342006 Median Age Adult Population 43 43 432006 Age 0-5 912 7,759 16,1972006 Age 6-13 1,147 10,739 22,7342006 Age 14-17 604 5,844 11,9042006 Age 18-20 449 4,167 8,2612006 Age 21-24 604 5,123 10,7482006 Age 25-29 623 5,431 12,4682006 Age 30-34 569 5,499 12,2802006 Age 35-39 642 5,906 12,7042006 Age 40-44 775 7,425 15,5902006 Age 45-49 727 6,993 14,7972006 Age 50-54 694 6,089 13,2082006 Age 55-59 704 5,589 12,3602006 Age 60-64 444 3,892 8,6922006 Age 65-69 298 2,582 6,0352006 Age 70-74 176 1,886 4,5642006 Age 75-79 120 1,667 4,1622006 Age 80-84 77 1,029 2,6562006 Age 85+ 48 727 2,315% 2006 Age 0-5 9.49% 8.78% 8.45%% 2006 Age 6-13 11.93% 12.16% 11.86%% 2006 Age 14-17 6.28% 6.61% 6.21%% 2006 Age 18-20 4.67% 4.72% 4.31%% 2006 Age 21-24 6.28% 5.80% 5.61%% 2006 Age 25-29 6.48% 6.15% 6.50%% 2006 Age 30-34 5.92% 6.22% 6.41%% 2006 Age 35-39 6.68% 6.69% 6.63%% 2006 Age 40-44 8.06% 8.40% 8.13%% 2006 Age 45-49 7.56% 7.92% 7.72%% 2006 Age 50-54 7.22% 6.89% 6.89%% 2006 Age 55-59 7.32% 6.33% 6.45%% 2006 Age 60-64 4.62% 4.41% 4.53%% 2006 Age 65-69 3.10% 2.92% 3.15%% 2006 Age 70-74 1.83% 2.13% 2.38%% 2006 Age 75-79 1.25% 1.89% 2.17%% 2006 Age 80-84 0.80% 1.16% 1.39%



% 2006 Age 85+ 0.50% 0.82% 1.21%2006 White Population 5,349 46,269 97,2712006 Black Population 3,393 34,859 82,1272006 Asian/Hawaiian/Pacific Islander 520 3,784 5,9802006 American Indian/Alaska Native 38 446 9092006 Other Population (Incl 2+ Races) 313 2,990 5,3892006 Hispanic Population 447 4,885 8,6872006 Non-Hispanic Population 9,166 83,463 182,988% 2006 White Population 55.64% 52.37% 50.75%% 2006 Black Population 35.30% 39.46% 42.85%% 2006 Asian/Hawaiian/Pacific Islander 5.41% 4.28% 3.12%% 2006 American Indian/Alaska Native 0.40% 0.50% 0.47%% 2006 Other Population (Incl 2+ Races) 3.26% 3.38% 2.81%% 2006 Hispanic Population 4.65% 5.53% 4.53%% 2006 Non-Hispanic Population 95.35% 94.47% 95.47%2000 Non-Hispanic White 6,849 52,694 118,0592000 Non-Hispanic Black 4,455 38,463 113,4202000 Non-Hispanic Amer Indian/AK Native 56 499 1,0902000 Non-Hispanic Asian 749 4,735 7,9882000 Non-Hispanic Hawaiian/Pacific Islander 2 29 602000 Non-Hispanic Some Other Race 4 108 3182000 Non-Hispanic Two or More Races 195 1,299 3,279% 2000 Non-Hispanic White 55.64% 53.86% 48.34%% 2000 Non-Hispanic Black 36.19% 39.32% 46.44%% 2000 Non-Hispanic Amer Indian/AK Native 0.45% 0.51% 0.45%% 2000 Non-Hispanic Asian 6.08% 4.84% 3.27%% 2000 Non-Hispanic Hawaiian/Pacific Islr 0.02% 0.03% 0.02%% 2000 Non-Hispanic Some Other Race 0.03% 0.11% 0.13%% 2000 Non-Hispanic Two or More Races 1.58% 1.33% 1.34%

Population Change 1-mi. 3-mi. 5-mi.Total Employees n/a n/a n/aTotal Establishments n/a n/a n/a2006 Total Population 9,613 88,348 191,6752006 Total Households 3,161 28,563 63,661Population Change 1990-2006 -2,867 -7,108 -56,814Household Change 1990-2006 -1,270 -4,600 -26,503% Population Change 1990-2006 -22.97% -7.45% -22.86%% Household Change 1990-2006 -28.66% -13.87% -29.39%Population Change 2000-2006 -3,333 -16,648 -65,694Household Change 2000-2006 -1,419 8,233 -32,346% Population Change 2000-2006 -25.75% -15.86% -25.53%% Households Change 2000-2006 -30.98% -22.37% -33.69%



Housing 1-mi. 3-mi. 5-mi.2000 Total Housing Units 4,945 38,864 106,2762000 Occupied Housing Units 4,613 36,729 96,0572000 Owner Occupied Housing Units 2,833 23,029 53,2372000 Renter Occupied Housing Units 1,779 13,700 42,8202000 Vacant Housing Units 332 2,135 10,219% 2000 Occupied Housing Units 93.29% 94.51% 90.38%% 2000 Owner Occupied Housing Units 57.30% 59.26% 50.09%% 2000 Renter Occupied Housing Units 35.98% 35.25% 40.29%% 2000 Vacant Housing Units 6.72% 5.49% 9.62%

Income 1-mi. 3-mi. 5-mi.2006 Median Household Income $47,846 $43,232 $38,3162006 Per Capita Income $20,732 $19,216 $18,4912006 Average Household Income $63,047 $59,437 $55,6742006 Household Income < $10,000 289 2,478 7,7662006 Household Income $10,000-$14,999 185 2,087 5,2272006 Household Income $15,000-$19,999 174 1,838 4,4492006 Household Income $20,000-$24,999 172 1,896 4,2382006 Household Income $25,000-$29,999 200 1,763 3,9742006 Household Income $30,000-$34,999 177 1,792 4,0072006 Household Income $35,000-$39,999 138 1,386 3,2702006 Household Income $40,000-$44,999 130 1,609 3,6872006 Household Income $45,000-$49,999 202 1,806 3,7332006 Household Income $50,000-$59,999 277 2,658 5,4972006 Household Income $60,000-$74,999 298 2,947 5,8122006 Household Income $75,000-$99,999 530 3,630 6,4352006 Household Income $100,000-$124,999 196 1,209 2,2612006 Household Income $125,000-$149,999 89 776 1,4502006 Household Income $150,000-$199,999 54 279 7112006 Household Income $200,000-$249,999 21 117 3082006 Household Income $250,000-$499,999 26 271 7812006 Household Income $500,000+ 2 19 542006 Household Income $200,000+ 49 407 1,143% 2006 Household Income < $10,000 9.15% 8.68% 12.20%% 2006 Household Income $10,000-$14,999 5.85% 7.31% 8.21%% 2006 Household Income $15,000-$19,999 5.51% 6.44% 6.99%% 2006 Household Income $20,000-$24,999 5.44% 6.64% 6.66%% 2006 Household Income $25,000-$29,999 6.33% 6.17% 6.24%% 2006 Household Income $30,000-$34,999 5.60% 6.27% 6.29%% 2006 Household Income $35,000-$39,999 4.37% 4.85% 5.14%% 2006 Household Income $40,000-$44,999 4.11% 5.63% 5.79%% 2006 Household Income $45,000-$49,999 6.39% 6.32% 5.86%% 2006 Household Income $50,000-$59,999 8.77% 9.31% 8.63%% 2006 Household Income $60,000-$74,999 9.43% 10.32% 9.13%% 2006 Household Income $75,000-$99,999 16.77% 12.71% 10.11%



% 2006 Household Income $100,000-$124,999 6.20% 4.23% 3.55%% 2006 Household Income $125,000-$149,999 2.82% 2.72% 2.28%% 2006 Household Income $150,000-$199,999 1.71% 0.98% 1.12%% 2006 Household Income $200,000-$249,999 0.66% 0.41% 0.48%% 2006 Household Income $250,000-$499,999 0.82% 0.95% 1.23%% 2006 Household Income $500,000+ 0.06% 0.07% 0.08%% 2006 Household Income $200,000+ 1.55% 1.43% 1.80%

Retail Sales Volume 1-mi. 3-mi. 5-mi.2006 Children/Infants Clothing Stores $950,370 $10,135,757 $24,218,4762006 Jewelry Stores $560,280 $4,404,749 $9,743,4392006 Mens Clothing Stores $1,905,676 $15,877,301 $36,888,5952006 Shoe Stores $1,357,732 $12,468,954 $31,622,1552006 Womens Clothing Stores $3,087,724 $25,228,891 $58,169,6502006 Automobile Dealers $14,903,815 $139,503,779 $302,526,3822006 Automotive Parts/Acc/Repair Stores $2,818,773 $24,849,074 $54,759,4692006 Other Motor Vehicle Dealers $481,554 $4,336,232 $8,123,0432006 Tire Dealers $645,046 $5,876,057 $12,793,5692006 Hardware Stores $682,812 $6,160,647 $12,064,3722006 Home Centers $4,314,626 $38,820,874 $75,986,7622006 Nursery/Garden Centers $2,250,786 $16,038,634 $33,932,8062006 Outdoor Power Equipment Stores $798,680 $7,925,022 $14,654,3782006 Paint/Wallpaper Stores $355,882 $3,184,871 $6,602,3042006 Appliance/TV/Other Electronics Stores $2,126,334 $18,940,523 $41,228,2302006 Camera/Photographic Supplies Stores $325,480 $2,787,887 $5,842,7132006 Computer/Software Stores $1,265,919 $10,333,135 $21,824,8922006 Beer/Wine/Liquor Stores $1,599,199 $12,661,055 $29,813,1732006 Convenience/Specialty Food Stores $1,408,597 $12,894,731 $28,533,3892006 Restaurant Expenditures $6,836,230 $58,272,536 $127,207,6342006 Supermarkets/Other Grocery excl Conv $14,760,115 $134,520,978 $316,353,4542006 Furniture Stores $1,604,718 $13,660,596 $29,603,9122006 Home Furnishings Stores $6,519,629 $51,457,069 $110,478,1922006 Gen Merch/Appliance/Furniture Stores $23,379,085 $197,277,504 $445,465,7872006 Gasoline Stations w/ Convenience Stores $6,881,121 $64,810,637 $143,127,2892006 Other Gasoline Stations $5,472,524 $51,915,906 $114,593,8992006 Department Stores excl Leased Depts $25,505,420 $216,218,025 $486,694,0132006 General Merchandise Stores $21,774,367 $183,616,908 $415,861,8752006 Other Health/Personal Care Stores $1,020,423 $8,185,437 $19,161,9592006 Pharmacies/Drug Stores $7,638,381 $64,927,617 $149,515,4902006 Pet/Pet Supplies Stores $1,442,518 $13,249,298 $26,284,5982006 Book/Periodical/Music Stores $874,986 $6,808,486 $15,487,9562006 Hobby/Toy/Game Stores $970,908 $8,907,573 $19,505,6332006 Musical Instrument/Supplies Stores $77,037 $674,174 $1,444,2622006 Sewing/Needlework/Piece Goods Stores $51,587 $456,416 $956,2452006 Sporting Goods Stores $960,091 $9,125,658 $17,681,1632006 Video Tape Stores - Retail $255,286 $2,349,392 $5,300,184



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