PLAZA 15251525 N. GRANITE REEF ROAD │ SCOTTSDALE, ARIZONA

INVESTMENT PACKAGE

4715 N. 32nd Street, Suite 100Phoenix, AZ 85018

602.957.9900 │ 602.957.6300www.landmarktcn.com

ANDY MELLEN602.977.9900

Mellen@LandmarkTCN.com

TABLE OF CONTENTS

EXECUTIVE SUMMARYThe OpportunityTerms of OfferingInvestment Highlights

THE PROPERTY: PLAZA 1525Property PhotosProperty Site MapAerial Photograph of LocationLocation Area Map

MARKETING MATERIALSLeasing Brochure

AREA OVERVIEWCity of Scottsdale OverviewEconomic OverviewOffice Market OverviewDemographics

DISCLAIMER

4715 N. 32nd Street, Suite 100Phoenix, AZ 85018

602.957.9900 │ 602.957.6300www.landmarktcn.com

THE OPPORTUNITY

As an exclusive agent for the owner,Landmark TCN, is pleased to offer thisunique investment opportunity at Plaza1525. The offering consists of medical,dental and professional office spacewhich is located at 1525 N. Granite ReefRoad in Scottsdale, Arizona on the SEC ofMcDowell Road and Granite Reef Road,minutes from Loops 101 and 202freeways.

TERMS OF OFFERING

EXECUTIVE SUMMARY

ADDRESS 1525 N. Granite Reef Rd.,

Scottsdale, Arizona

ZONING S-R

PARCEL SITE 1.79 Acres

PARKING 98 (5/1000)

BUILT 1974 & 1980

TOTAL BUILDING SIZE 19,352 SF

COUNTY Maricopa

MAP-PAGE-PARCEL 131-06-24H & 24J

% LEASED 60% (11,526/19,352)

NUMBER OF TENANTS 6

SALES PRICE $3,000,000.00

PRICE PER SQUARE FOOT $155.00

INVESTMENT HIGHLIGHTS

• Located in “McDowell Village,” an upscale, Scottsdale re-development project

• Mixed Use Commercial Office Space - Medical, Dental and Professional

• Suites within property:1 – 1,406 Square Feet3 – 3,491 Square Feet5 – 2,365 Square Feet7 – 1,415 Square Feet9 – 1,307 Square Feet10 – 1,307 Square Feet11 – 1,648 Square Feet12 – 967 Square Feet14 – 1,300 Square Feet15 – 1,300 Square Feet16 – 1,288 Square Feet17 – 1,288 Square Feet

• Existing: 19,352 Sq.Ft. Office Buildings built in 1974 & 1980

• 1/4 Mile to the Loop 101 freeway; Near Loop 202 freeway

EXECUTIVE SUMMARY

THE PROPERTY: PLAZA 1525

THE PROPERTY: PLAZA 1525

THE PROPERTY: PLAZA 1525

THE PROPERTY: PLAZA 1525

THE PROPERTY: PLAZA 1525

THE PROPERTY: PLAZA 1525

AREA OVERVIEW

CITY OF SCOTTSDALE OVERVIEW

Southern Scottsdale is “betwixt and between” the dynamic andappealing office space locations of Downtown Scottsdale andDowntown Tempe/Tempe Town Lake. Downtown Scottsdale andDowntown Tempe/Tempe Town Lake provide the followingadvantages for office space uses:

• Central and accessible locations with positive images;

• Proximity to a diverse set of housing uses;

• Proximity to retail, lodging, and other support services andamenities, including eating and drinking establishments;

• Market responsive product types with appropriate physicalcharacteristics including adequate infrastructure and parking;and most important,

• Locations within office agglomerations or a “critical mass” thathelp businesses attract and retain labor and operate costeffectively and productively. Agglomeration economies refer to aspatially concentrated development and capital base that fromincreasing returns to economies of scale, gives cost and revenueadvantages to a geographic area’s expanding and new firms.These advantages are “external to the firm” because they benefitall the companies engaged in a given range of activities within aparticular place, without firms having to shell out extraresources.

Southern Scottsdale is not so close that it can be readily linked to potential expansion of the Downtown Scottsdale or Downtown Tempe/Tempe Town Lake office space agglomerations. Southern Scottsdale, however, is close enough to these agglomerations such that prospective non-price sensitive users considering office space options in either Downtown Scottsdale or Downtown Tempe/Tempe Town Lake will typically not choose to locate in Southern Scottsdale. However, the potential opportunity exists to capture office space users that are priced out of these adjacent areas because of the availability of lower-priced office space in Southern Scottsdale.

AREA OVERVIEW

ECONOMIC OVERVIEW

Investment Market Benefits – South Scottsdale

Projects are still occurring in all real estate sectors – residential,office, retail, hotel, and cultural/institutional uses.

This area has seen almost 4,000 new residential units either built,in process, or planned since January 2003. Condo conversionshave not been included in this figure. According to a recent ASUstudy, the 2007 median resale home price for southern Scottsdalewas $308,500. This reflects a 50% increase from the 2000 medianresale home price of $205,000.

This area is seeing a significant amount of reinvestment in theexisting housing stock. In the last five years, there have been 666permits issued (valued at over $21 million) for major remodelingor additions, and an additional 6,504 permits issued (valued over$92 million) for minor home improvements. This is a significantincrease from only a year ago, when the sum of both was just over$75 million.

While downtown Scottsdale has seen the majority of thisinvestment (≈$1.9 billion or about 60% of the total), the balance ofsouthern Scottsdale is now attracting a significant amount ofinterest from developers and appears to be where many of thenew projects in the coming years will focus. In fact, plannedprivate sector projects in the downtown and in SouthernScottsdale account for $889 million, or more than a 27% of allactivity over the last five years.

Office Space Investment Benefits – South Scottsdale

To help assess the competitive position of SouthernScottsdale as a location for office space, we conductedresearch to identify the comparative advantages anddisadvantages of the Southern Scottsdale submarket.

Comparative Advantages

The following comparative advantages apply to SouthernScottsdale as an office location:

• Good accessibility to Loop 101 and Loop 202 and a centrallocation from which to access other activity centers in thePhoenix region including Downtown Scottsdale, thePhoenix International Airport, the Tempe campus ofArizona State University, and Downtown Tempe

• Access to a large pool of well educated workers

• The prestige of a Scottsdale address.

AREA OVERVIEW

DEMOGRAPHICS: POPULATION AND EMPLOYMENT

Demographic and Income Estimates for Residents

in the Five-Minute Drive Time Trade Area: 2000-2012

2000 2007 2012 2000-2007

% Change

2007-2012

% Change

Population 68,716 74,429 79,257 8.3 6.5

Households 31,964 34,319 36,384 7.4 6.0

Average Household Income $51,992 $55,484 $59,618 6.7 7.5

Total Household Income $1,661,872,288 $1,904,155,396 $2,169,141,312 14.6 13.9

Sources: City of Scottsdale Economic Vitality Department; SitesUSA; Gruen Gruen + Associates.

Employment and Job Growth

Scottsdale is creating jobs faster than it is adding to its labor force and thus remains a net importer of labor. This createsemployment opportunities for Scottsdale residents and creates a significant business component to the local tax base.Scottsdale’s unemployment rate was lower than state and metropolitan levels and was approximately 2.6 in 2006.

Scottsdale recruited ten new targeted firms with about 1,500 new jobs over the past year, with average annual salaries ofapproximately $60,000. The City benefited from population growth, as well as higher income levels due to the addition of higherwage jobs. Major new employers to announce moves to Scottsdale last year included eBay/PayPal, Quicken Loans, andCareerBuilder.com, as well as the announcement that Dial Corp. will be expanding and relocating their corporate headquartersto a new site in Scottsdale.

AREA OVERVIEW

Total and Vacant Office Space, Vacancy Rate and Rent in Scottsdale: 2003-2007

Year Total Space

# Square Feet

Vacant Space

# Square Feet

Vacancy Rate

%

Annual Rent

$ per Square Foot

2003 19,540,303 2,568,857 13.1 23.27

2004 20,942,713 3,050,826 14.6 23.59

2005 22,024,925 2,384,350 10.8 25.90

2006 24,284,667 2,721,474 11.2 27.96

2007 25,359,924 3,692,281 14.6 28.47

Supply figures represent fourth quarter of each year.

Sources: CoStar Group; Gruen Gruen + Associates.

According to CoStar Group, the inventory of office space in the City of Scottsdale has increased by 5.8 million square feetfrom 19.5 million square feet in 2003 to 25.4 million square feet of space in 2007. The amount of vacant space has rangedfrom a low of 2.4 million square feet or a 10.8 percent vacancy rate in 2005 to a high of 3.7 million square feet of space for avacancy rate of 14.6 percent in 2007. About 1.1 million square feet of office was added to the Scottsdale market from 2006through 2007, while the amount of vacant space increased by almost 1.0 million square feet. Average rental rates haveincreased by over 20 percent from a low of $23.27 per square foot in 2003 to $28.47 per square foot in 2007.

OFFICE SPACE: RENTAL/VACANCY RATE

From the last two quarters of 2003 through the first two quarters of 2007, approximately 5.6 million square feet of spacewas delivered in the Scottsdale office market. The amount of space added to the office inventory equates to 22 percent ofthe total supply. Net absorption of 5.2 million square feet equates to 93 percent of the office space completed. The increasein the vacancy rate described in Table VIII-1 is attributable to the amount of office space additions exceeding the amountof space absorbed. Over the past four years, an average of 1.3 million square feet of office space was absorbed annuallywhile an average of 1.4 million square feet was delivered each year.

Office Space Absorbed and Constructed in Scottsdale: 2003-2007

Year Total Space

# Square Feet

Net Annual Absorption of

Space # Square Feet

Office Space Completed #

Square Feet

2003 19,540,303 515,909 315,317

2004 20,942,713 920,441 932,590

2005 22,024,925 1,748,668 1,023,971

2006 24,284,667 1,942,618 2,259,742

2007 25,359,924 104,450 1,075,257

Total ----- 5,232,086 5,606,877

Average Annual ------ 1,308,022 1,401,719

Sources: CoStar Group; Gruen Gruen + Associates.

AREA OVERVIEW

OFFICE SPACE ABSORPTION

The information contained in the following Marketing Brochure is proprietary and strictlyconfidential. It is intended to be reviewed only by the party receiving it from Landmark TCNand should not be made available to any other person or entity without the written consent ofLandmark TCN. This Marketing Brochure has been prepared to provide summary, unverifiedinformation to prospective purchasers, and to establish only a preliminary level of interest inthe subject property. The information contained herein is not a substitute for a thorough duediligence investigation. Landmark TCN has not made any investigation, and makes nowarranty or representation, with respect to the income or expenses for the subject property, thefuture projected financial performance of the property, the size and square footage of theproperty and improvements, the presence or absence of contaminating substances, PCB's orasbestos, the compliance with State and Federal regulations, the physical condition of theimprovements thereon, or the financial condition or business prospects of any tenant, or anytenant’s plans or intentions to continue its occupancy of the subject property. The informationcontained in this Marketing Brochure has been obtained from sources we believe to be reliable;however, Landmark TCN has not verified, and will not verify, any of the information containedherein, nor has Landmark TCN conducted any investigation regarding these matters andmakes no warranty or representation whatsoever regarding the accuracy or completeness ofthe information provided. All potential buyers must take appropriate measures to verify all ofthe information set forth herein.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR LANDMARK TCN AGENT FOR MORE DETAILS.

DISCLAIMER

PLAZA 15251525 N. GRANITE REEF ROAD │ SCOTTSDALE, ARIZONA

4715 N. 32nd Street, Suite 100Phoenix, AZ 85018

602.957.9900 │ 602.957.6300www.landmarktcn.com

ANDY MELLEN602.977.9900

Mellen@LandmarkTCN.com