PERIMETER GATEWAY II E. Hartford Drive Scottsdale, AZ Prepared By: Colton Trauter, Principal

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1 PERIMETER GATEWAY II 8777 E. Hartford Drive Scottsdale, AZ Prepared By: Colton Trauter, Principal 3200 E. Camelback Rd., Suite 100 Phoenix, AZ MAY 2014

2 LEE & ASSOCIATES TABLE OF CONTENTS Perimeter Gateway II 1. Marketing Materials Flyer(s), Fact Sheet, Site Plan 2. CoStar Listing 3. Brokerage Website Listing Brokerage blast 4. Competitive Survey Summary of competitive listings 5. Lease Comparable Submarket lease comps 8777 E. Hartford Drive Scottsdale, AZ 85255

3 80,000 SF CLASS A OFFICE BUILDING another fine development of Available For Lease PERIMETER GATEWAY II 8777 EAST HARTFORD DRIVE SCOTTSDALE, ARIZONA n n n n Close proximity to the Pima Freeway (Loop 101) fulldiamond interchange The Scottsdale Airport and the Scottsdale Airpark The unique and beautiful Sonoran Desert Several resort hotels including The Boulders, Fairmont Princess, Hyatt Regency Scottsdale, Four Seasons, JW Marriott Desert Ridge Resort and Westin Kierland Resort Area Amenities n n n Numerous residential communities and golf communities including DC Ranch and Grayhawk An abundance of retail centers that provide everything from fine dining to high-end retail Numerous world-renowned golf courses, including Troon and Troon North, Desert Mountain, Desert Highlands, Estancia and the Tournament Players Club For information contact: BILL BLAKE (602) bblake@leearizona.com COLTON TRAUTER (602) ctrauter@leearizona.com 3200 EAST CAMELBACK ROAD, SUITE 100 PHOENIX, ARIZONA (602) FAX (602) No warranty or representation, expressed or implied, is made as to the accuracy of the information contained herein and same is submitted subject to errors, omissions, change of price, rental, or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals.

4 BILL BLAKE (602) COLTON TRAUTER (602) EAST CAMELBACK ROAD, SUITE 100 PHOENIX, ARIZONA (602) FAX (602) AD RO A PIM PRINCESS DRIVE HAYDEN ROAD Y EWA FRE 01 P1 LOO SCOTTSDALE PRINCESS RESORT VE DRI TER IME PER SCOTTSDALE ROAD PERIMETER CENTER HARTFORD DRIVE BELL ROAD TOURNAMENT PLAYERS CLUB N TPC DESERT COURSE SCOTTSDALE PROMENADE FRANK LLOYD WRIG HT BO ULEVA RD WEST WORLD PERIMETER GATEWAY II 8777 EAST HARTFORD DRIVE SCOTTSDALE, ARIZONA Building Features: n Signage: Exterior freeway signage available n Parking: 4:1000 SF (underground parking available) n Terrific exterior views of McDowell Mountains n Tenant flexibility, as landlord currently owns and manages ±1.3 million SF at this location of office space in and around Perimeter Center

5 PERIMETER GATEAWAY II ADDRESS: 8777 East Hartford Drive, Scottsdale, AZ TOTAL BUILDING SIZE: 80,000 RSF AVAILABLE SPACE: Suite 105 Suite 110 Suite 115 Suite 125 Suite 210 7,063 RSF 5,963 RSF 11,217 RSF 6,373 RSF 16,698 RSF MINIMUM CONTIGUOUS: 2,500 RSF MAXIMUM CONTIGUOUS: 47,357 RSF LEASE RATE: $23.50/SF PARKING: 5:1,000 TENANT IMPROVEMENTS: COMMENTS: Negotiable Landmark building in the heart of the prestigious 260 acre business office park. The site is nestled near the base of the McDowell Mountains. There is an abundance of retail centers and shopping malls that provide everything from find dining to high-end retail. Exclusively Presented By: Bill Blake Principal (602) Colton Trauter Principal (602) East Camelback Road, Suite 100 Phoenix, Arizona

6 E Hartford Dr - Perimeter Gateway II Location: Landlord Rep: Developer: Management: Recorded Owner: Perimeter Gateway II NWC Bell Rd & Loop 101 Scottsdale Cluster Scottsdale Airpark Submarket Maricopa County Scottsdale, AZ Lee & Associates Desert Troon Companies, Inc. - DTR12, LLC Building Type: Class A Office Status: Built Oct 2006 Stories: 2 RBA: 80,000 SF Typical Floor: 40,000 SF Total Avail: 63,644 SF % Leased: 20.5% For Sale: Not For Sale Expenses: 2013 $3.26/sf; 2013 $6.82/sf Parcel Number: Parking: 200 Surface Spaces are available; 200 Covered $55.00/mo; Reserved $65.00/mo; Ratio of 5.00/1,000 SF Floor SF Avail Floor Contig Bldg Contig Rent/SF/Yr + Svs Occupancy P 1st 16,287 16,287 16,287 $23.50/fs 30 Days Negotiable Lee & Associates / Bill A. Blake (602) / Colton Trauter (602) New building on DHL Campus in Perimeter Center. Loop 101 frontage. P 1st / Suite 105 7,003 30,357 47,357 $23.50/fs Vacant Negotiable Lee & Associates / Bill A. Blake (602) / Colton Trauter (602) New building on DHL Campus in Perimeter Center. Loop 101 frontage. P 1st / Suite 110 5,912 30,357 47,357 $23.50/fs Vacant Negotiable Lee & Associates / Bill A. Blake (602) / Colton Trauter (602) New building on DHL Campus in Perimeter Center. Loop 101 frontage. P 1st / Suite ,123 30,357 47,357 $23.50/fs Vacant Negotiable Lee & Associates / Bill A. Blake (602) / Colton Trauter (602) New building on DHL Campus in Perimeter Center. Loop 101 frontage. Term Type New New Direct Direct This copyrighted report contains research licensed to Lee & Associates /4/2014 Page 1

7 E Hartford Dr - Perimeter Gateway II(cont'd) Floor SF Avail Floor Contig Bldg Contig Rent/SF/Yr + Svs Occupancy P 1st / Suite 125 6,319 30,357 47,357 $23.50/fs Vacant Negotiable Lee & Associates / Bill A. Blake (602) / Colton Trauter (602) New building on DHL Campus in Perimeter Center. Loop 101 frontage. P 2nd 17,000 17,000 47,357 $23.50/fs Vacant Negotiable Lee & Associates / Bill A. Blake (602) / Colton Trauter (602) New building on DHL Campus in Perimeter Center. Loop 101 frontage. Term Direct New Type Building Notes Landmark building in the heart of the prestigious 260 acre business office park. The site is nestled near the base of the McDowell Mountains. There is an abundance of retail centers and shopping malls that provide everything from fine dining to high-end retail. This copyrighted report contains research licensed to Lee & Associates /4/2014 Page 2

8 Summary Proposal Comparison Perimeter Gateway II Perimeter Gateway III 8777 E Hartford Dr / 1, 1, 1, 1, 2, E Hartford Dr / 1 (05/21/2014 9:53 AM) (05/21/2014 9:52 AM) Space Floor: 1, 1, 1, 1, 2, 1 - Suite: 105 Floor: 1 - Suite: Area 63,644 RSF, 63,644 USF 5,000 RSF, 5,000 USF Term 6/1/2014-5/31/2019 (5 Years) 6/1/2014-5/31/2019 (5 Years) Discount Rate 6.00% 6.00% CASH FLOW METRICS $ $ / RSF $ / USF $ $ / RSF $ / USF Total Cash Flow 7,719, ,338 Present Value 6,701, ,338 Average Cash Flow / Yr 1,543, , Year 1 Cash Flow 1,503, , Market Net Effective Rent / Yr * 1,541, , Proposal Net Effective Rent / Yr 1,541, , * Excludes Other Rev/Costs & TI HEAD COUNT METRICS PER HEAD (10) PER HEAD (10) Square Feet 6,364 RSF (6,364 USF) 500 RSF (500 USF) Total Cash Flow $771,912 $63,034 Present Value $670,168 $54,734 Average Cash Flow / Yr $154,382 $12,607 Year 1 Cash Flow $150,365 $12,309 The analysis contained herein is based on assumptions and estimates which have not been (or cannot be) independently verified and are subject to change. No representation or warranty is made as to the accuracy or completeness of the analysis and all information herein is provided as is. The analysis herein should not be construed as investment, tax or legal advice. Summary Proposal Comparison (Tenant Perspective) Copyright 2013 CoStar Realty Information, Inc. Jim Cornish (654017) May 21, :23 PM PAGE 1

9 Summary Proposal Comparison LEASE TERMS Perimeter Gateway II Perimeter Gateway III 8777 E Hartford Dr / 1, 1, 1, 1, 2, E Hartford Dr / 1 (05/21/2014 9:53 AM) (05/21/2014 9:52 AM) Service Type: Gross Gross Base Rent: $23.50 / RSF (no steps) $24.50 / RSF (no steps) Free Rent: None$0 None$0 Tenant Improvements: None None Operating Expenses: $10.08 / RSF (3% inflation) $9.50 / RSF (3% inflation) The analysis contained herein is based on assumptions and estimates which have not been (or cannot be) independently verified and are subject to change. No representation or warranty is made as to the accuracy or completeness of the analysis and all information herein is provided as is. The analysis herein should not be construed as investment, tax or legal advice. Summary Proposal Comparison (Tenant Perspective) Copyright 2013 CoStar Realty Information, Inc. Jim Cornish (654017) May 21, :23 PM PAGE 2

10 Summary Cash Flow Comparison Perimeter Gateway II Perimeter Gateway III 8777 E Hartford Dr / 1, 1, 1, 1, 2, E Hartford Dr / 1 (05/21/2014 9:53 AM) (05/21/2014 9:52 AM) Space Floor: 1, 1, 1, 1, 2, 1 - Suite: 105 Floor: 1 - Suite: Area 63,644 RSF, 63,644 USF 5,000 RSF, 5,000 USF Term 6/1/2014-5/31/2019 (5 Years) 6/1/2014-5/31/2019 (5 Years) Discount Rate 6.00% 6.00% CASH FLOW $ $ / RSF $ / USF $ $ / RSF $ / USF Base Rent 7,478, , Total Base Rent 7,478, , Recoveries 240, , Total Rent 7,719, , Cash Flow 7,719, , Present Value 6,701, ,338 Market Net Effective Rent / Yr * 1,541, , Proposal Net Effective Rent / Yr 1,541, , * Excludes Other Rev/Costs & TI The analysis contained herein is based on assumptions and estimates which have not been (or cannot be) independently verified and are subject to change. No representation or warranty is made as to the accuracy or completeness of the analysis and all information herein is provided as is. The analysis herein should not be construed as investment, tax or legal advice. Summary Cash Flow Comparison (Tenant Perspective) Copyright 2013 CoStar Realty Information, Inc. Jim Cornish (654017) May 21, :23 PM PAGE 1

11 Cash Flow Comparison PERIMETER GATEWAY II Floor: 1, 1, 1, 1, 2, 1 Suite: E Hartford Dr / 1, 1, 1, 1, 2, 1 (05/21/2014 9:53 AM) Year 1 Year 2 Year 3 Year 4 Year 5 Lease Total 63,644 RSF 6/1/2014-5/31/ Years Base Rent Total Base Rent Recoveries 1,495,634 1,495,634 8,021 1,495,634 1,495,634 27,512 1,495,634 1,495,634 47,587 1,495,634 1,495,634 68,265 1,495,634 1,495,634 89,563 7,478,170 7,478, ,948 Total Rent 1,503,655 1,523,146 1,543,221 1,563,899 1,585,197 7,719,118 Cash Flow 1,503,655 1,523,146 1,543,221 1,563,899 1,585,197 7,719,118 Total Cash Flow Present Value (6%) Market Net Effective Rent / RSF * Proposal Net Effective Rent / RSF 7,719,118 6,701, * Excludes Other Rev/Costs & TI PERIMETER GATEWAY III Floor: 1 Suite: 8660 E Hartford Dr / 1 (05/21/2014 9:52 AM) Year 1 Year 2 Year 3 Year 4 Year 5 Lease Total 5,000 RSF 6/1/2014-5/31/ Years Base Rent Total Base Rent Recoveries 122, , , ,500 2, , ,500 3, , ,500 5, , ,500 6, , ,500 17,838 Total Rent 123, , , , , ,338 Cash Flow 123, , , , , ,338 Total Cash Flow Present Value (6%) Market Net Effective Rent / RSF * Proposal Net Effective Rent / RSF 630, , * Excludes Other Rev/Costs & TI The analysis contained herein is based on assumptions and estimates which have not been (or cannot be) independently verified and are subject to change. No representation or warranty is made as to the accuracy or completeness of the analysis and all information herein is provided as is. The analysis herein should not be construed as investment, tax or legal advice. Cash Flow Comparison (Tenant Perspective) Copyright 2013 CoStar Realty Information, Inc. Jim Cornish (654017) May 21, :23 PM PAGE 1

12 Total Base Rent + Recoveries/Op Exp Total Base Rent + Recoveries/Op Exp Year 1 4 Year 1 7 Year 1 10 Year 1 13 Year 2 16 Year 2 19 Year 2 22 Year 2 25 Year 3 28 Year 3 31 Year 3 34 Year 3 37 Year 4 40 Year 4 43 Year 4 46 Year 4 49 Year 5 52 Year 5 55 Year 5 58 Year E Hartford Dr / 1, 1, 1, 1, 2, E Hartford Dr / 1 The analysis contained herein is based on assumptions and estimates which have not been (or cannot be) independently verified and are subject to change. No representation or warranty is made as to the accuracy or completeness of the analysis and all information herein is provided as is. The analysis herein should not be construed as investment, tax or legal advice. Total Base Rent + Recoveries/Op Exp (Tenant Perspective) Copyright 2013 CoStar Realty Information, Inc. Jim Cornish (654017) May 21, :23 PM PAGE 1

13 Proposal Effective Rent / USF Perimeter Gateway II Floor: 1, 1, 1, 1, 2, 1 Suite: ,644 RSF 63,644 USF (0%) 8777 E Hartford Dr / 1, 1, 1, 1, 2, 1 $24.22 (6% Discount Rate) (05/21/2014 9:53 AM) Perimeter Gateway III Floor: 1 Suite: 5,000 RSF 5,000 USF (0%) 8660 E Hartford Dr / 1 $25.18 (6% Discount Rate) (05/21/2014 9:52 AM) $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00 $18.00 $20.00 $22.00 $24.00 $26.00 The analysis contained herein is based on assumptions and estimates which have not been (or cannot be) independently verified and are subject to change. No representation or warranty is made as to the accuracy or completeness of the analysis and all information herein is provided as is. The analysis herein should not be construed as investment, tax or legal advice. Proposal Effective Rent / USF (Tenant Perspective) Copyright 2013 CoStar Realty Information, Inc. Jim Cornish (654017) May 21, :23 PM PAGE 1

14 Present Value Perimeter Gateway II Floor: 1, 1, 1, 1, 2, 1 Suite: ,644 RSF 63,644 USF (0%) 8777 E Hartford Dr / 1, 1, 1, 1, 2, 1 $6,701,684 (6% Discount Rate) (05/21/2014 9:53 AM) Perimeter Gateway III Floor: 1 Suite: 5,000 RSF 5,000 USF (0%) 8660 E Hartford Dr / 1 $547,338 (6% Discount Rate) (05/21/2014 9:52 AM) $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 The analysis contained herein is based on assumptions and estimates which have not been (or cannot be) independently verified and are subject to change. No representation or warranty is made as to the accuracy or completeness of the analysis and all information herein is provided as is. The analysis herein should not be construed as investment, tax or legal advice. Present Value (Tenant Perspective) Copyright 2013 CoStar Realty Information, Inc. Jim Cornish (654017) May 21, :23 PM PAGE 1

15 Present Value / Head Perimeter Gateway II Floor: 1, 1, 1, 1, 2, 1 Suite: ,644 RSF 63,644 USF (0%) 8777 E Hartford Dr / 1, 1, 1, 1, 2, 1 $670,168 (6% Discount Rate) (05/21/2014 9:53 AM) Perimeter Gateway III Floor: 1 Suite: 5,000 RSF 5,000 USF (0%) 8660 E Hartford Dr / 1 $54,734 (6% Discount Rate) (05/21/2014 9:52 AM) $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 The analysis contained herein is based on assumptions and estimates which have not been (or cannot be) independently verified and are subject to change. No representation or warranty is made as to the accuracy or completeness of the analysis and all information herein is provided as is. The analysis herein should not be construed as investment, tax or legal advice. Present Value / Head (Tenant Perspective) Copyright 2013 CoStar Realty Information, Inc. Jim Cornish (654017) May 21, :23 PM PAGE 1

16 Total Cash Flow Perimeter Gateway II Floor: 1, 1, 1, 1, 2, 1 Suite: ,644 RSF 63,644 USF (0%) $7,719, E Hartford Dr / 1, 1, 1, 1, 2, 1 (05/21/2014 9:53 AM) Perimeter Gateway III Floor: 1 Suite: 5,000 RSF 5,000 USF (0%) $630, E Hartford Dr / 1 (05/21/2014 9:52 AM) $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 The analysis contained herein is based on assumptions and estimates which have not been (or cannot be) independently verified and are subject to change. No representation or warranty is made as to the accuracy or completeness of the analysis and all information herein is provided as is. The analysis herein should not be construed as investment, tax or legal advice. Total Cash Flow (Tenant Perspective) Copyright 2013 CoStar Realty Information, Inc. Jim Cornish (654017) May 21, :23 PM PAGE 1

17 Year 1 Cash Flow Perimeter Gateway II Floor: 1, 1, 1, 1, 2, 1 Suite: ,644 RSF 63,644 USF (0%) $1,503, E Hartford Dr / 1, 1, 1, 1, 2, 1 (05/21/2014 9:53 AM) Perimeter Gateway III Floor: 1 Suite: 5,000 RSF 5,000 USF (0%) $123, E Hartford Dr / 1 (05/21/2014 9:52 AM) $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 The analysis contained herein is based on assumptions and estimates which have not been (or cannot be) independently verified and are subject to change. No representation or warranty is made as to the accuracy or completeness of the analysis and all information herein is provided as is. The analysis herein should not be construed as investment, tax or legal advice. Year 1 Cash Flow (Tenant Perspective) Copyright 2013 CoStar Realty Information, Inc. Jim Cornish (654017) May 21, :23 PM PAGE 1

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19 Perimeter Center Direct Competition May 2014 PROJECT NAME DEVELOPER/OWNER 1. Riverwalk Arizona North Dobson Road Alter Group TOTAL SQ. FT. AVAIL. SQ. FT. % LEASED 164,565 64,159 61% RENTAL RATE (PSF) $22.50-$23.00 T.I. S (PSF) PARKING RATIO SPEC SUITES COMMENTS Negotiable 5:1000 Phase I consists of two 3-story office buildings totaling 164,000 SF (100,000 and 64,000) The site also has a 142,000 SF design center in four buildings, 27,000 SF of it is available 2. Raintree Corporate Center I, II, III, IV NEC of Raintree Drive and Loop 101 Cavan 707, , % $23.00-$26.50 Negotiable 5:1000 Several available Garage parking at all four phases They have spec suites in Phase I / III 3. McDowell Mountain Business Park SEC Bahia Drive & Loop ,237 37,060 89% $23.50 Negotiable 4.75:1000 Suite 360: 1,596 SF Two 3-story buildings Health Dialogue, Quicken and U of A EWS took Phase II Phase I: 3 rd Flr. spec suite $18.00/FS 4. Promenade Corporate Center I, II North Scottsdale Road Pacific Companies 252,176 52, % $27.30 Negotiable 4:1000 Several available On-site amenities Parking garage 5. North Scottsdale Corporate Center 6811 East Mayo Boulevard Miller Global 156, % $28.00 Negotiable 4:1000 Phase II of the multi-phased project at North Scottsdale Corporate Center 4-story Class A office Exceptional signage Axway signed for 38,000 SF 6. Max at Kierland North Scottsdale Road Trammel Crow 258,312 13, % $30.00-$31.00 Negotiable 4:1000 Several available Frontage along Scottsdale Rd APL and UTI are lead Tenants 7. Pinnacle in Kierland IV North Scottsdale Road Furst Properties 210,000 21, % $31.00 Negotiable 5:1000 Several available Morgan Stanley is anchor tenant Excellent visibility and access from Scottsdale Rd Adjacent to numerous amenities located in Kierland Commons 9 spec suites ranging from 982-3,300 SF L:\JAC\Listing Audits\Gateway II\Direct Competition- Perimeter Audit.doc

20 PROJECT NAME DEVELOPER/OWNER 8. La Curvata Pima Road and Downing Olson Drive Harvest Development TOTAL SQ. FT. AVAIL. SQ. FT. % LEASED 173, ,259 53% Perimeter Center Direct Competition May 2014 RENTAL RATE (PSF) $23.00 T.I. S (PSF) PARKING RATIO SPEC SUITES COMMENTS Negotiable 2-4:1000 Five building office project Building sold for $93 psf Signed Bell Auto (12,000 SF) 9. Terra Verde I North Perimeter Drive Desert Troon 180,000 36,000 80% $25.00 Negotiable 5:1000 Located in the middle of three fairways in north Scottsdale Signed Pulte (96,000 SF) Pulte has 46,342 SF available for sublease 10. Scottsdale Quarter SEC of Scottsdale & Greenway-Hayden Roads Glimcher 320,455 14,761 95% $35.00 Negotiable Office above retail (Kierland-esq) Live, work, play environment 800,000 SF of retail, office, residential, hotel Signed Superior Mortgage (18,000 SF) and Cities West (12,000). Signed Starwood for 56,000 SF 11. Pima Center East Pima Center Parkway North 90 th Street East Del Camino Mainspring 655, ,608 72% $ $27.50 Negotiable 5/1000 Several available Mainspring purchased 12. Kierland Office Park 6909, 6929 East Greenway Parkway Furst Properties 100,000 32, % $23.00 Negotiable 4/1000 Several available One of the original office buildings built in Kierland. Working on RSC deal 13. Kierland Corporate Center 7033, 7047 East Greenway Parkway Bataa Oil Incorporated 191,333 38, % $ $28.00 Negotiable 4/1000 Several available Second generation space also available. Underground parking. Financial stress. Signed ST Micro for 27,000 SF in Phase II 14. Kierland One North Scottsdale Road 175, ,450 1% $27.50 Negotiable 5.27/1000 DR Horton in the market now. Whole building (One) could be available. L:\JAC\Listing Audits\Gateway II\Direct Competition- Perimeter Audit.doc

21 PROJECT NAME DEVELOPER/OWNER 15. City North East High Street Capmark Financial TOTAL SQ. FT. AVAIL. SQ. FT. % LEASED 451, , % Perimeter Center Direct Competition May 2014 RENTAL RATE (PSF) $ $26.50 T.I. S (PSF) PARKING RATIO SPEC SUITES COMMENTS Negotiable 4-5:1000 In receivership On-site amenities Easy access to Loop Northsight Financial Center N. Northsight Blvd. Northsight Financial Office Park 120,040 16, % $21.95 Negotiable 4.40: block to Loop 101 Underground parking 17. Scottsdale Northsight N. 87 th St. MIREF Northsight, LLC 136,676 21,880 95% $21.82 Negotiable 5.1:1000 Access to Loop 101 Ample parking available 18. Perimeter Parkview Corporate Center 8377 E Hartford Dr. Desert Troon Companies, Inc. 106,000 51, % $24.00 Negotiable 5:1000 Underground Parking Easy access to Loop Perimeter Gateway V 8665 E Hartford Dr. Desert Troon Companies, Inc. 66,600 66,600 0% $23.50 Negotiable 5:1000 Below grade covered parking Visible signage from Bell Rd. 20. The Pinnacle in Perimeter Center N. 85 th St. Furst Properties LLC 93,320 66, % $24.00 Negotiable 5:1000 Visibility from Loop 101 TOTAL SF AVAILABLE SF Avg. % LEASED 4,774,020 1,424,482 75% L:\JAC\Listing Audits\Gateway II\Direct Competition- Perimeter Audit.doc

22 LEASE COMPARABLES May 06, 2014 Building Name Submarket Tenant Start Date Size Term (Mos.) Rate Structure T.I. Lease Type Parking Ratio Comments Address Landlord Effective Rate Expenses Covered Pima Center Scottsdale Depcom Power, Inc ,048 SF 15 Mos. Mos. 1-1 $0.00 Mos $23.00 As-Is FSG 5:1000 Transaction Type: New Lease CV MainSpring Pima, LLC Eff. Rate: $ E. Pima Center Parkway Pima Center 2C Scottsdale Mainstream Energy Corporation Mainspring Capital ,012 SF 36 Mos. Mos. 1-8 $18.25 Mos $19.10 Mos $19.95 Mos $20.45 As-Is FSG 4.70:1000 Transaction Type: Renewal 8444 N. 90th Street Eff. Rate: $19.34 Scottsdale City Centre Scottsdale Sydergy Solutions, Inc Camelback and Scottsdale Rd. LLC ,622 SF 39 Mos. Mos $17.25 Mos $17.75 Mos $18.25 As-Is FSG :1000 Transaction Type: New Lease 7201 E. Camelback Rd. Eff. Rate: $17.75 Turnstone Office Park North Scottsdale Arizona Community Management Services, LLC ,857 SF 36 Mos. Mos. 1-3 $0.00 Mos $17.00 Mos $17.50 Mos $18.00 $10.00 rsf FSG :1000 Reserved: $35.00/mo Transaction Type: Renewal N. Perimeter Dr. Turnstone Office Park Ltd Eff. Rate: $16.08 Mesquite Corporate Center N. Kierland Blvd. North Scottsdale Martixx Management Waitt Company ,349 SF 40 Mos. Mos. 1-4 $0.00 Mos $23.50 Mos $24.00 Mos $24.50 $5.00 rsf FSG 4:1000 Transaction Type: New Lease Built: RBA: 78,905 SF. Eff. Rate: $21.60 Page 1/4

23 LEASE COMPARABLES May 06, 2014 Building Name Submarket Tenant Start Date Size Term (Mos.) Rate Structure T.I. Lease Type Parking Ratio Comments Address Landlord Effective Rate Expenses Covered Canyon Village N. Thompson Peak Pkwy., Ste. 250 North Scottsdale Rock Corporate Real Estate DMB Associates, Inc ,783 SF 92 Mos. Mos. 1-8 $0.00 Mos $22.50 Mos $23.00 Mos $23.50 Mos $24.00 Mos $24.50 Mos $25.00 Mos $25.50 $47.00 rsf FSG 4:1000 Reserved: $55.00/mo Unreserved: $35.00/mo Transaction Type: New Lease Built: RBA: 29,319 SF. Eff. Rate: $21.91 Thompson Peak Medical Center N. Scottsdale Healthcare Dr. North Scottsdale Wesley G. Wilson, Md. Healthcare Properties, Inc ,981 SF 63 Mos. Mos. 1-7 $12.00 Mos $24.00 Mos $25.25 Mos $26.00 Mos $26.79 Mos $27.59 Eff. Rate: $24.50 $6.00 rsf FSG :1000 Reserved: $35.00/mo Transaction Type: Renewal Built: Pima Center - Mesquite 9150 E. Del Camino, Ste. 108 Scottsdale Chargepoint, Inc. MainSpring Capital Group ,733 SF 48 Mos. Mos. 1-3 $0.00 Mos. 4-4 $18.75 Mos $18.75 Mos $19.25 Mos $19.75 Mos $20.25 As-Is FSG :1000 Transaction Type: New Lease Built: RBA: 42,399 SF. Eff. Rate: $18.34 Page 2/4

24 LEASE COMPARABLES May 06, 2014 Building Name Submarket Tenant Start Date Size Term (Mos.) Rate Structure T.I. Lease Type Parking Ratio Comments Address Landlord Effective Rate Expenses Covered Kierland Commons N. Kierland Blvd. North Scottsdale First Allied Asset Management The Macerich Company ,369 SF 66 Mos. Mos. 1-6 $0.00 Mos $28.00 Mos $28.75 Mos $29.50 Mos $30.25 Mos $31.00 Mos $31.75 $25.00 rsf FSG :1000 Transaction Type: New Lease Built: Lifestyle Center. RBA: 41,373 SF. Eff. Rate: $27.16 Indian bend Corporate Center Scottsdale Petty Gilbertson Cox, LLC ,114 SF 36 Mos. Mos. 1-2 $0.00 Mos $17.04 As-Is MOD GRS Transaction Type: New Lease 8151 E. Indian Bend Rd. Donahey Investments, LLC. Eff. Rate: $16.09 Office Condo. Built: parking spaces N. Hayden Rd. Bldg. A-B Scottsdale Amwest Surety Insurance Company ,938 SF 12 Mos. Mos $17.00 As-Is FSG.25:1000 Transaction Type: Renewal Mercoado Properties, Inc Eff. Rate: $ Neighborhood Center N. Hayden Rd. Raintree Corporate Center I N. Pima Rd. North Scottsdale Keller Williams CW Capital Asset Management, LLC ,180 SF 89 Mos. Mos. 1-5 $0.00 Mos $21.50 Mos $22.00 Mos $22.50 Mos $23.00 Mos $23.50 Mos $24.00 Mos $24.50 $30.00 rsf FSG 5:1000 Transaction Type: New Lease Built: Suites 130, 140, 150, & 160. RBA: 149,659 SF. Eff. Rate: $21.71 Page 3/4

25 LEASE COMPARABLES May 06, 2014 Building Name Submarket Tenant Start Date Size Term (Mos.) Rate Structure T.I. Lease Type Parking Ratio Comments Address Landlord Effective Rate Expenses Covered Riverwalk Arizona Scottsdale GlobalTranz ,558 SF 24 Mos. Mos $24.00 Mos $23.00 $0.58 rsf FSG 5:1000 Transaction Type: New Lease The Alter Group 7500 N. Dobson Rd. Eff. Rate: $23.50 Built: RBA: 100,268 SF. Months 1-12: $24.00 Paid on 20,000 SF. Months 13-24: $23.00 Paid on 34,558 SF. The actual effective rate is $ E. Tierra Buena Ln. North Scottsdale Turning Technologies, LLC ,280 SF 36 Mos. Mos $0.80 As-Is NNN 3:1000 Transaction Type: New Lease Eff. Rate: $0.80 The Hewson Company Built: E. Tierra Buena Ln., Ste. 300 Pima Center Scottsdale Rural Metro Operating Company ,025 SF 17 Mos. Mos $14.00 As-Is NNN 4.70:1000 Transaction Type: Expansion Eff. Rate: $ E. Del Camino MainSpring Capital Group Lease Expansion. Scottsdale Crossing 9237 E. Via de Ventura - Bldg. D Scottsdale Head Farmer, LLC. Diamond Ventures ,998 SF 66 Mos. Mos. 1-6 $0.00 Mos $19.50 Mos $20.50 Mos $21.50 Mos $22.50 $12.00 rsf FSG :1000 Reserved: $35.00/mo Transaction Type: New Lease Turnkey TIA. Built: Eff. Rate: $18.82 Scottsdale Forum 6263 N. Scottsdale Rd. Scottsdale Tallwave Clarion Partners ,511 SF 61 Mos. Mos. 1-1 $0.00 Mos $20.75 Mos $21.25 Mos $21.75 Mos $23.00 Mos $23.75 $26.00 rsf FSG :1000 Transaction Type: Expansion Built: Early expansion and extension. Currently in 7,000 SF. T.I. are on 2nd Gen Space Eff. Rate: $21.74 Page 4/4