13625 CALIFORNIA STREET, SUITE 110 | OMAHA, NEBRASKA | 402.933.6336 | WWW.LOCKWOODDEV.COM

The Shoppes at Steele Crossing100 - 160 East Joyce Boulevard

Fayetteville, Arkansas

Offering Memorandum

2

PROPERTY IMAGES

I.O. MetroMojito’s and AT&T

Guitar Center, NW Nails and Lenny’s SubsLouie’s Grill & Bar and Plato’s Closet

3

The information contained in the following Marketing Brochure is proprietary and strictly confiden-tial. It is intended to be reviewed only by the party receiving it from Lockwood Realty, LLC and should not be made available to any other person or entity without the written consent of Lockwood Realty. this Marketing Brochure has been prepared to provide summary, unverified information to prospec-tive purchasers, and to establish only a preliminary level of interest in the subject property. The in-formation contained herein is not a substitute for a thorough due diligence investigation. Lockwood Realty, LLC has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliancewith State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject preoprty. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Lockwood Realty, LLC has not verified, and will not verify, any of the informa-tion contained herein, nor has Lockwood Realty, LLC conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or complete-ness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

CONFIDENTIALTY AGREEMENT

4

PROJECT OVERVIEW

SiteThe Shoppes at Steele Crossing is a 43,000 square foot shopping center located in the heart of the retail, restaurant & entertainment district in Fayetteville, Arkansas. The site is conveniently located at the corner of Joyce Boulevard and Steele Boulevard, adjacent to the Northwest Arkansas Mall (NWA Mall), the only regional mall in the area with over 5.6 million visitors anually. Additionally, the site is located across the street from the new Malco Razorback Cinema, a multiplex theatre with twelve screens.

The Shoppes at Steele Crossing boasts a wide array of national and regional tenant’s such as: Guitar Center, Cold Stone Creamery, Louie’s Grill, Plato’s Closet and I.O. Metro as well as a freestanding Taco Bell (not part of sale).

Fayetteville, ArkansasFayetteville is part of the Metropolitan Statistical Area (MSA) of Northwest Arkansas that includes neighboring cities Springdale, Rogers and Bentonville. Together they have a population of over 464,000, an increase of over thirty percent from 2000 and 2010. According to Forbes Magazine, Northwest Ar-kansas was ranked number fourth for best places for business and careers in 2009.

Major employers include Wal-Mart, J.B. Hunt and Tyson Foods. The Fayetteville Chamber of Com-merce claims that Fayetteville is marked by growing economic prosperity; it also manages to retain a distinctive hometown feeling, making it an attractive place to live, work and play.

Fayetteville, is located in Northwest Arkansas and is home to the University of Arkansas with a student enrollment of approximately 21,000. In addition to the University of Arkansas there are five other uni-versities and more than a dozen modern medical facilities.

Area RetailersOther retail in Steele Crossing includes: Wal-Mart Super Center, The Home Depot, Target, Kohl’s, Best Buy and Bed Bath & Beyond.

5

INVESTMENT OVERVIEW

Price: $9,600,000.00Price/SF: $221.95Cap Rate: 7.75%

Physical Address: 100 - 160 East Joyce Boulevard

Legal Description: Lot 10 CMN Business Park Phase I

Ownership Entity: LRDFI Fayetteville, LLC

Size: 43,253 Square Feet

Land Area: 6.18 Acres

Occupancy: 100%

Year of Construction: 2007

# of Tenants: 11

Construction: Block, Stone, Glass & EIFS

Buildings: 2

Parking: 283 Stalls - 8 Handicap

Zoning: C-2, Commercial Thoroughfare

6

FINANCIAL SUMMARY

2011 Pro FormaAnnual Operating Data

Gross Rental Income: $790,651NNN Fees: $190,764*

Gross Potential Income $981,415Less Vacancy Allowance (5%) $49,071

Effective Income: $932,344Less Expenses: $190,764

Net Operating Income: $741,580

*Estimated 2011 Operating ExpensesCAM: $131,964Taxes: $45,000Insurance: $13,800

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FayettevilleAugust 2011 Rent Roll

Macintosh HD:Users:Libby:Desktop:Current Projects:Steele Crossing:Financials:LRDF1 Fayetteville Rent Roll 2011- Joe Platt.xls

Tenant AddressRented Space Rent PSF

Lease Term Rent Due NNN Due Total Due

AT&T 100 East Joyce Blvd, #113 1521 $19.25 11/31/12 $29,279.25 $6,721.68 $36,000.93

Cold Stone Creamery 160 E Joyce Blvd #109 1667 $21.00 10/31/17 $35,007.00 $7,366.80 $42,373.80

Green Ink, Inc 160 E Joyce Blvd #108 1600 $18.00 11/30/12 $28,800.00 $7,070.76 $35,870.76

Guitar Center 160 E Joyce Blvd #103-107 9285 $15.50 9/31/17 $143,917.50 $38,714.16 $182,631.66

I.O. Metro 100 East Joyce Blvd, #107-109 7919 $18.00 12/31/14 $142,542.00 $34,985.64 $177,527.64

Larry's Pizza 100 East Joyce Blvd, #110-112 6212 $18.00 11/30/12 $111,816.00 $27,452.16 $139,268.16

Lenny's Sub 160 E. Joyce Blvd - Suite 101 1667 $20.00 11/30/13 $33,340.00 $7,366.80 $40,706.80

Louie's Grill 100 E. Joyce Blvd Suite 101-103 5850 $22.00 1/31/19 $128,700.00 $25,852.44 $154,552.44

N.W. Nails 160 E. Joyce Blvd - Suite 102 1600 $20.00 3/31/13 $32,000.00 $7,070.76 $39,070.76

Pigtails & Crewcuts 100 E. Joyce Blvd. Ste 105 1389 $17.50 3/31/16 $24,307.50 $6,138.24 $30,445.74

Plato's Closet 100 E. Joyce Blvd Suite 106 2878 $18.00 5/31/13 $51,804.00 $11,980.32 $63,784.32

Uptown Eyes 100 E. Joyce Blvd Suite 104 1665 $17.50 3/31/16 $29,137.50 $7,358.04 $36,495.54

Totals 43,253 $790,650.75 $188,077.80 $978,728.55

Total Building S.F. 43,253Rented Space 43,253Vacancy 100%

RENT ROLL

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LEASE SUMMARY

LRDF1 Fayetteville

Lease Summary

Option Increase

Tenant Address Open Date Lease Term. To Renew Rent Begin Rent Sq. Ft. Sq. Feet Date

AB Eyes 100 E. Joyce Blvd. Suite 104 3/15/2011 3/15/2016 (2) 5 yr ext. 3/15/2011 17.50$ 1665

Option 1: 3/15/2016

Option 2: 3/15/2021

AT & T Wireless 100 E. Joyce Blvd Suites 113 11/17/2007 11/31/2012 (2) 5 yr ext. 11/17/2007 19.25$ 1521

Option 1: 12/1/2012

Option 2: 12/1/2017

Cartridge World 160 E. Joyce Blvd - Suite 108 11/5/2007 11/30/2012 (1) 5 yr ext. 11/5/2007 18.00$ 1600

Option 1: 12/1/2012

Cold Stone Creamery 160 E. Joyce Blvd - Suite 109 10/31/2017 (2) 5 yr ext. 10/18/2007 21.00$ 1667

Option 1: 11/1/2012

Option 2: 11/1/2017

Guitar Center Stores 160 E. Joyce Blvd - Suite 300 8/7/2007 9/31/2017 (2) 5 yr ext. 9/7/2007 15.50$ 9285

Option 1: 10/1/2012

Option 2: 12/1/2017

I.O. Metro 100 E. Joyce Blvd Suites 107-109 11/23/2007 12/31/2013 (2) 5 yr. ext. 7/1/2008 18.00$ 7919

Option 1: 1/1/2014

Option 2: 1/1/2019

Larry's Pizza 100 E. Joyce Blvd Suites 110-112 11/14/2007 11/30/2012 (2) 5 yr. ext. 11/1/2007 18.00$ 6212

Option 1: 11/30/2012

Option 2: 11/30/2017

Lenny's Sub Shop 160 E. Joyce Blvd - Suite 101 11/30/2013 (2) 5 yr. ext 12/1/2008 20.00$ 1667

Option 1:

Option 2:

Louie's Grill 100 E. Joyce Blvd Suite 101-103 1/31/2019 (2) 5 yr. ext. 2/1/2009 22.00$ 5850

2/1/2014

N.W. Nails 160 E. Joyce Blvd - Suite 102 3/31/2013 (1) 5 yr. ext. 4/1/2008 20.00$ 1600

Option 1: 4/1/2013

Pigtails & Crewcuts 100 E. Joyce Blvd Suite 105 3/15/2011 3/15/2016 (2) 5 yr. ext. 3/15/2011 17.50$ 1389

Option 1: 3/15/2016

Option 2: 3/15/2021

Plato's Closet 100 E. Joyce Blvd Suite 106 5/31/2013 (1) 5 yr. ext. 5/6/2008 18.00$ 2878

Option1: 6/1/2013

43,253Total Building Square Footage

P:\Accounting\Melinda's\Lease Summaries\Fayetteville Lease Summary

9

SITE PLAN

Louie’s Grill

Uptown Eyes

Pigtails & Crewcuts

Plato’s Closet

I.O. Metro Mojitos

AT&T

Lenn

y’s S

ubs

NW

Nai

ls

Guitar Center

Cart

idge

Wor

ldCo

ldst

one

Crea

mer

y

10

BUILDING #1

11

BUILDING #2

NW Nails

12

BEST BUY TARGET TARGET KOHLS

expect great things

SUPER CENTER SUPER CENTER

OLD NAVY

NORTHWEST ARKANSAS MALL

T H E A T R E S

Opening Spring 2007

SITE

Steele Crossing

COLTON’S Steak House & Grill

ITALIAN RESTARANT

Fulbright Expressway

Steele Blvd.

Greatest

WORLD’S

H A M B U R G E R S

Bio de Ouro Bio de Ouro

Gregg Ave.

Joyce Blvd. F I N E F U R N I T U R E

circut circut

RadioShack R

DELI DELI

BUFFALO WILD WINGS GRILL & BAR

TACO BELL

BUENO

AERIAL IMAGE

13

TENANT PROFILE

Guitar Center is a national company with over 200 stores throughout the country. Guitar Center still proves more than ever to be a strong link between musicians and the tools of the trade. Website: www.guitarcenter.com

Lenny’s Sub Shop provides authentic subs and Philly Chees-esteaks served in a real Philadelphia-style sub shop. It contin-ues to expand throughout the United States by offering fran-chise opportunities and by building company owned stores. Website: www.lennyssubshop.com

AT&T Wireless One-Stop is an authorized AT&T wireless dealer and is recognized as the leading worldwide provider of IP-based communications services to businesses. They are also the top U.S. provider of wireless, high speed Internet access, Wi-Fi, local and long distance voice, and directory publishing and advertising services.

Plato’s Closet is a nationwide unique recycling retail store spe-cializing in clothes for teens and twenty somethings with over 200 locations throughout the U.S. and Canada - they buy and sell the latest looks in gently used clothing and accessories from the hottest name brand designers for girls and boys. Website: www.platoscloset.com

I.O. Metro is a specialty lifestyle furniture retailer that sells eclectic import furniture and accessories in 11 retail storesacross the Midwest & Southeast. I.O. Metro has few direct competitors.Website: www.io_metro.com

14

TENANT PROFILE

NW NailsNW Nails is a locally owned nail salon which has been in busi-ness in northwest Arkansas for many years.

Uptown Eyes Eyewear Gallery is where elite eyecare meets ex-clusive eyewear. This vision center offers premiun eyecare ser-vices and an array of high quality products.Website: www.uptownfayettevillear.com

Louie’s Grill & Bar is a member of the Hal Smith Restaurant Group which includes such other concepts as: Charleston’s, Mahogony Prime Steakhouse & Red Rock Canyon. Louie’sis a casual American Fare Grill & Pub. Website: www.ehsrg.com

Cartridge World is the leader in the refilling and remanufac-turing of empty printer cartridges. 2004 was a break out year for store growth; the 100th store in the United States was sold in June. Today, Cartridege World has over 600 stores open throughout the U.S.Website: www.cartridgeworldusa.com

Cold Stone Creamery offers unique ice cream creations to smoothies, cakes and shakes. They boast more than 1,400 stores nationwide. Website: www.coldstonecreamery.com

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TENANT PROFILE

Mojitos Mexican Grill offers authentic Mexican food with a modern twist. A variety of Latin, Carribean and American dishes can also be found on the menu. The restaurant opened in March of 2009.Website: www.mojitosfayetteville.com

Pigtails & Crewcuts is a full service salon for children. From the expert staff to adorable airplane chairs to the video games this salon gives children an experience unlike any other. In addition to hair services, they also throw parties for children and offer a custom line of hair products.Website: www.pigtailsandcrewcuts.com

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FAYETTEVILLE, ARKANSAS MAP

Pop-Facts: Demographic Quick Facts 2011 Report

Radius 1: 100 E JOYCE BLVD, FAYETTEVILLE, AR 72703-6292, aggregate

Radius 2: 100 E JOYCE BLVD, FAYETTEVILLE, AR 72703-6292, aggregate

Radius 3: 100 E JOYCE BLVD, FAYETTEVILLE, AR 72703-6292, aggregate

Radius 3Radius 2

0.00 - 10.00 miles0.00 - 5.00 miles0.00 - 1.00 miles

% % %Radius 1Description

Population

210,858136,9863,171 2016 Projection

191,257124,8752,804 2011 Estimate

140,29792,7091,916 2000 Census

96,62964,4541,087 1990 Census

45.19%43.84%76.26% Growth 1990 - 2000

Households

80,35152,6841,260 2016 Projection

71,43847,0091,092 2011 Estimate

53,52135,862764 2000 Census

37,19525,347407 1990 Census

43.89%41.48%87.71% Growth 1990 - 2000

2011 Est. Population by Single Classification Race 124,875 191,2572,804

152,809 79.9076.9496,0752,291 White Alone 81.70

7,635 3.994.635,77768 Black or African American Alone 2.43

2,594 1.361.351,68517 American Indian and Alaska Native Alone 0.61

5,151 2.693.143,91756 Asian Alone 2.00

1,652 0.861.031,28523 Native Hawaiian and Other Pacific Islander Alone 0.82

15,856 8.299.8212,268272 Some Other Race Alone 9.70

5,559 2.913.103,86877 Two or More Races 2.75

2011 Est. Population Hispanic or Latino 124,875 191,2572,804

30,811 16.1118.6523,286467 Hispanic or Latino 16.65

160,445 83.8981.35101,5892,337 Not Hispanic or Latino 83.35

2011 Tenure of Occupied Housing Units 47,009 71,4381,092

38,824 54.3547.4222,291624 Owner Occupied 57.14

32,614 45.6552.5824,718468 Renter Occupied 42.86

2011 Average Household Size 2.50 2.572.57

Nielsen Solution Center 1 800 866 6511

Prepared By:

Prepared For: Lockwood Development

31 OfPage

© 2011 The Nielsen Company. All rights reserved.

Fri Sep 02, 2011Prepared On:

Pop-Facts: Demographic Quick Facts 2011 Report

Radius 1: 100 E JOYCE BLVD, FAYETTEVILLE, AR 72703-6292, aggregate

Radius 2: 100 E JOYCE BLVD, FAYETTEVILLE, AR 72703-6292, aggregate

Radius 3: 100 E JOYCE BLVD, FAYETTEVILLE, AR 72703-6292, aggregate

Radius 3Radius 2

0.00 - 10.00 miles0.00 - 5.00 miles0.00 - 1.00 miles

% % %Radius 1Description

2011 Est. Households by Household Income 47,009 71,4381,092

10,634 14.8916.557,778107 Income Less than $15,000 9.80

9,186 12.8613.716,445127 Income $15,000 - $24,999 11.63

9,164 12.8313.716,447160 Income $25,000 - $34,999 14.65

12,081 16.9116.727,858194 Income $35,000 - $49,999 17.77

14,441 20.2118.998,925233 Income $50,000 - $74,999 21.34

7,053 9.878.754,11296 Income $75,000 - $99,999 8.79

3,944 5.524.892,29964 Income $100,000 - $124,999 5.86

1,920 2.692.491,17246 Income $125,000 - $149,999 4.21

1,483 2.082.0194729 Income $150,000 - $199,999 2.66

1,220 1.711.7180531 Income $200,000 - $499,999 2.84

312 0.440.472205 Income $500,000 and over 0.46

2011 Est. Average Household Income $54,552 $56,736$63,882

2011 Est. Median Household Income $40,410 $43,361$46,722

2011 Est. Per Capita Income $20,930 $21,477$24,894

2011 Median HH Inc by Single Race Class or Ethn

45,30342,41648,722 White Alone

31,97530,34433,170 Black or African American Alone

30,87926,82860,464 American Indian and Alaska Native Alone

38,85531,77953,376 Asian Alone

39,99039,05256,118 Native Hawaiian and Other Pacific Islander Alone

36,14835,67833,896 Some Other Race Alone

34,61633,31332,668 Two or More Races

34,63133,38233,616 Hispanic or Latino

44,62941,67748,367 Not Hispanic or Latino

Nielsen Solution Center 1 800 866 6511

Prepared By:

Prepared For: Lockwood Development

32 OfPage

© 2011 The Nielsen Company. All rights reserved.

Fri Sep 02, 2011Prepared On:

Pop-Facts: Demographic Quick Facts 2011 Report

Appendix: Area Listing

Radius Definition:

Block GroupType: Radius 1 Reporting Detail: Aggregate Reporting Level:

Area Name:

FAYETTEVILLE, AR 72703-6292 -Radius

Latitude/Longitude100 E JOYCE BLVD

0.00 1.00

-94.15965736.125548

Radius Definition:

Block GroupType: Radius 2 Reporting Detail: Aggregate Reporting Level:

Area Name:

FAYETTEVILLE, AR 72703-6292 -Radius

Latitude/Longitude100 E JOYCE BLVD

0.00 5.00

-94.15965736.125548

Radius Definition:

Block GroupType: Radius 3 Reporting Detail: Aggregate Reporting Level:

Area Name:

FAYETTEVILLE, AR 72703-6292 -Radius

Latitude/Longitude100 E JOYCE BLVD

0.00 10.00

-94.15965736.125548

1

970297487

Project Information:

Order Number:

Site:

Nielsen Solution Center 1 800 866 6511

Prepared By:

Prepared For: Lockwood Development

33 OfPage

© 2011 The Nielsen Company. All rights reserved.

Fri Sep 02, 2011Prepared On:

13625 CALIFORNIA STREET, SUITE 110 | OMAHA, NEBRASKA | 402.933.6336 | WWW.LOCKWOODDEV.COM

For More Information, Please Contact:

Bob Begley, Lockwood Developmentbob@lockwooddev.com

402.933.3663