COBBLESTONE SHOPPING CENTER - REDDING, CA

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COBBLESTONE SHOPPING CENTER - REDDING, CA DuBois Gianulias www.cbre.com/dg ACCEPTING OFFERS IMMEDIATELY Exclusively Offered By Jon Gianulias Senior Vice President 916.446.8787 jon.gianulias@cbre.

1 COBBLESTONE SHOPPING CENTER - REDDING, CA DuBois Gianulias ACCEPTING OFFERS IMMEDIATELY Exclusively Offered By Jon Gianulias Senior Vice President jon.gianulias@cbre.com John DuBois Senior Vice President john.dubois@cbre.com Mark Denholm Associate mark.denholm@cbre.com Joe DuBois Associate joe.dubois@cbre.com HARTNELL AVENUE CB Richard Ellis, Inc. 555 Capitol Mall, Suite 100 Sacramento, California Fax: For more information, please go to

COBBLESTONE SHOPPING CENTER 192 HARTNELL AVENUE REDDING, CA HIGHLIGHTS Neighborhood Center Anchored by Raley s Supermarket Stable Investment 97% Leased with In-Place Rents Below Market Rent All Three

Best Offer CY 2007 Projected NOI: $1,170,957 Property: 192 Hartnell Avenue Redding, CA Leasable Space Included: ±122,091 SF Land Included: ±12 Acres Year Built: 1982-1988 To Be Delivered Free and

The center s low vacancy reflects the quality of its grocery anchor, named number one supermarket in the country three times since 1997.

2 COBBLESTONE SHOPPING CENTER 192 HARTNELL AVENUE REDDING, CA HIGHLIGHTS Neighborhood Center Anchored by Raley s Supermarket Stable Investment 97% Leased with In-Place Rents Below Market Rent All Three Pads on Separate Parcels, Offering Flexibility in Ownership Strategies Layout Provides Excellent Visibility and Access to Cross-River Traffic on E Cypress SUMMARY ACCEPTING OFFERS IMMEDIATELY Price: Best Offer CY 2007 Projected NOI: $1,170,957 Property: 192 Hartnell Avenue Redding, CA Leasable Space Included: ±122,091 SF Land Included: ±12 Acres Year Built: To Be Delivered Free and Clear of Debt PROPERTY DESCRIPTION Cobblestone Shopping Center is a Raley s anchored shopping center located in the center of Redding CA. The center s low vacancy reflects the quality of its grocery anchor, named number one supermarket in the country three times since Cobblestone Shopping Center is visible and easily accessible from E Cypress, one of only spans across the Sacramento River in downtown Redding. All three of the center s pads are on separate parcels, which offers flexibility in ownership and exit strategies. DEMOGRAPHICS 1 Mile 3 Mile 5 Mile 2006 Population (est) 7,500 65,900 94,700 Population Growth ( ) 9.2% 11.6% 12.1% Average Household Income $36,000 $50,000 $52,600 MARKET DESCRIPTION Redding is located on Interstate 5, 150 miles north of Sacramento. It has recently been recognized by Money Magazine as #9 on their list of the top 20 cities to relocate or start a small business, and Expansion Management Magazine ranked Redding as the #1 city in the US for manufacturing. These rankings are reflected in the double-digit population growth in the 3 miles surrounding the site between 2000 and Average in-place rents (excluding Raley s) at Cobblestone are just over $1.00, well below the average asking rent for retail in Redding of $1.50 as of mid This below market average ensures strong tenant rentention as leases expire in the future.

FINANCIAL SUMMARY Income, Calendar Year 2007

334,450 Total Gross Income 1,580,772 Vacancy

1,574,573 Expenses 2 CAM Expenses 235,384

Taxes 109,029 Total Expenses (403,616) Net

Total general vacancy factor of 3%, excluding

Based on Seller's budget Tenant Sales information

3 FINANCIAL SUMMARY Income, Calendar Year 2007 Proforma Minimum Rent 1,246,322 CAM Reimbursement 334,450 Total Gross Income 1,580,772 Vacancy Allowance 1 3% (6,199) Effective Gross Income 1,574,573 Expenses 2 CAM Expenses 235,384 Management Fees 47,237 Insurance 11,966 Property Taxes 109,029 Total Expenses (403,616) Net Operating Income $1,170,957 Footnotes: 1. Total general vacancy factor of 3%, excluding income from Anchors 2. Based on Seller's budget Tenant Sales information will be available to interested parties upon request. Please contact us for further information. D UBOIS GIANULIAS

4 Henderson Rd COBBLESTONE SHOPPING CENTER 192 HARTNELL AVENUE REDDING, CA PARCEL MAP SITE PLAN America s Tires N NOT TO SCALE -- ALL DIMENSIONS ARE APPROXIMATE. Hartnell Avenue = AVAILABLE

5 RENT ROLL Rentable As of August 2006 Increases Suite Tenant Sq Ft (±) Share Start End Annual Rent Mon. Rent $/Sq. Ft. On To Options 10 Perko's Koffee Kup 3, % Feb-87 Jan-07 $78,300 $6, $1.69 Fixed None 16 Goodyear Tire Co. 5, % May-03 Apr-08 $75,444 $6, $1.20 Option 1 $6,915 2, 5-yr options with set rents (subleased to Am's Tire Co) Option 2 $7, America's Tire Company % Jan-06 Apr-08 $13,050 $1, $1.45 May-07 $1,125 None 24 Yuet Bistro 3, % Nov-03 Nov-18 $47,592 $3, $1.00 Dec-06 $4,323 1, 15-year option with $0.03/sf/mo annual increases Annually $0.03/sf/mo 28 RadioShack 2, % Mar-05 Feb-10 $24,012 $2, $0.85 Mar-08 $2,236 1, 5-yr option at $2,566/mo, fixed 32 Little Ceasars Pizza 1, % Mar-06 Jul-11 $31,008 $2, $1.45 Option 1 $2,940 3, 5-yr options at set rents 40 Taj Mahal 3, % Sep-05 Aug-10 $19,200 $1, $0.50 Sep-06 $1,664 None Sep-07 4% 44 Hollywood Nails 1, % Sep-05 Jul-10 $21,840 $1, $1.14 Aug-07 $1,911 None 48 Jackson Hewitt 1, % Sep-03 Sep-06 $12,301 $1, $0.86 Option $1,060 Notice date was April 04; no exercise on file Annually $0.03/sf/mo 64 Sunkissed 1, % May-05 Apr-10 $16,980 $1, $1.01 May-07 $1,500 None Annually 6% 66 Jimboy's Tacos 1, % May-01 Mar-11 $36,852 $3, $1.66 May-07 $3,219 None 68 Orthodontic Centers of 2, % Dec-05 Nov-08 $42,660 $3, $1.54 Dec-06 $3,733 None remain Dec-07 $3, Village Travel Service % Apr-04 Mar-09 $14,232 $1, $1.35 Apr-07 $1,233 None Apr-08 $1, Indo China Market 2, % Apr-04 Apr-09 $23,963 $1, $0.95 May-07 $2,102 1, 5-yr option with $0.05/sf/mo annual increases May-08 $2, Tailor & Tux Rental 1, % Jul-04 Sep-07 $15,420 $1, $1.00 N/A None 84 Precision Haircuts 1, % Jul-03 Jun-09 $16,644 $1, $1.36 Jul-07 $1,456 None 88 Sylvan Learning Center 2, % Mar-05 Feb-10 $28,044 $2, $0.99 Mar-07 $2,430 1, 5-yr option with 5% annual increases Annually 4% 92 Dubes Deli 2, % Jan-03 Oct-08 $27,724 $2, $0.85 Nov-06 $2,446 1, 5-yr option with $0.05/sf/mo annual increases Nov-07 $2, Book Country % Aug-03 Jul-09 $14,616 $1, $1.23 Aug-07 $1,279 None remain Aug-08 $1, Raley's 60, % May-84 May-14 $366,000 $30, $0.51 Fixed 3, 5-yr options at fixed rent 112 Check N Go 1, % Apr-03 Mar-08 $17,568 $1, $1.22 Apr-07 $1,538 None 120 Eastwood Insurance 1, % Feb-05 Jan-08 $22,176 $1, $1.40 Feb-07 $1,914 1, 3-yr option with $0.05/sf/mo annual increases 128 Carlson's Hearing Aid 1, % Jan-05 Dec-09 $14,040 $1, $1.00 Jan-07 $1,228 None 136 Nor Cal Security 1, % Aug-05 Jul-08 $9,804 $ $0.74 Aug-07 $858 None 144 East Earth Trade Winds 1, % Oct-04 Sep-09 $15,564 $1, $0.67 Oct-06 $1,454 None remain 160 US Armed Forces Recruit 1 3, % Sep-04 Aug-07 $56,972 $4, $1.32 Sep-09 $4,890 None 174 Earth Angels 1, % May-03 Apr-11 $8,736 $ $0.42 May-07 $764 None 192 Kragen Auto Parts #4203 5, % Nov-88 Nov-08 $97,179 $8, $1.43 Ea. Option CPI (Yr 1) 2, 5-yr options with CPI increase at beginning of each ELEC Electrical Room 310 Subtotal Leased 118, % $97, $1.14 Average In-Place Rents (excluding Raley's) 60A Available 3, % $0.82 Total Average In-Place Rents Subtotal Available 3,192 TOTAL OFFERING GLA 122, Rent paid in arrears on last day of month. D UBOIS GIANULIAS

6 COBBLESTONE SHOPPING CENTER 192 HARTNELL AVENUE REDDING, CA COBBLESTONE SHOPPING CENTER TENANT PROFILES RALEY S The company operates more than 100 supermarkets and larger-sized superstores, mostly in Northern California, but also in Nevada and New Mexico. In addition to its flagship Raley s Superstores, the company operates Bel Air Markets, Nob Hill Foods (an upscale Bay Area chain), and a discount warehouse chain, Food Source. Raley s stores typically offer groceries, natural foods, liquor, and pharmacies. Founded during the Depression by Thomas Porter Raley, the company is owned by Tom s daughter Joyce Raley Teel. GOODYEAR TIRE & RUBBER Goodyear operates about 90 plants worldwide, and has nearly 1,700 retail tire and auto centers. Goodyear is lessee of suite 16 at Cobblestone, and it has sublet its space to the operator of American s Tire Company, lessee of suite 20. KRAGEN AUTO PARTS CSK Auto owns more than 1,260 stores in about 22 states under the names Checker Auto Parts, Schuck s Auto Supply, and Kragen Auto Parts. The stores carry about 18,000 products for domestic and imported vehicles. The company sold its Automotive Information System, which provides auto technicians, parts makers, do-it-yourselfers, and others with diagnostic information for vehicle repairs, to Mobile Productivity. RADIO SHACK JIMBOY S TACOS RadioShack is one of the leading consumer electronics retail chains in North America with more than 7,460 outlets in the US, Puerto Rico, the Virgin Islands, Canada, and Mexico. Its stores offer a variety of products, including computers, DVD players, electronic toys, telephones, and, of course, radios. The stores also sell third-party services such as wireless calling plans and direct satellite service. The chain includes more than 1,700 dealer outlets and about 750 kiosks located primarily in malls and SAM S CLUB stores (kiosks are not RadioShack-branded). Jimboy s Tacos is a small regional chain of quick serve Mexican restaurants in northern California and Nevada. Begun in the mid-1950 s out of a trailer at Kings Beach on Lake Tahoe, the business has since grown to 45 stores.

CASH FLOW Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 For the Years Ending Dec-2007 Dec-2008 Dec-2009 Dec-2010 Dec-2011 Dec-2012 Dec-2013 Dec-2014 Dec-2015 Dec-2016

(27,785) (13,730) (31,914) (16,074) (18,854) (34,108) (13,914) Scheduled Base Rental Revenue 1,246,322 1,301,207 1,351,404 1,398,428 1,470,924 1,482,292 1,540,148 1,593,813 1,608,569 1,661,455

7 CASH FLOW Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 For the Years Ending Dec-2007 Dec-2008 Dec-2009 Dec-2010 Dec-2011 Dec-2012 Dec-2013 Dec-2014 Dec-2015 Dec-2016 Potential Gross Revenue Base Rental Revenue 1,267,286 1,310,718 1,359,315 1,426,213 1,484,654 1,514,206 1,556,222 1,612,667 1,642,677 1,675,369 Absorption & Turnover Vacancy (20,964) (9,511) (7,911) (27,785) (13,730) (31,914) (16,074) (18,854) (34,108) (13,914) Scheduled Base Rental Revenue 1,246,322 1,301,207 1,351,404 1,398,428 1,470,924 1,482,292 1,540,148 1,593,813 1,608,569 1,661,455 Expense Reimbursement Revenue Management Fee 19,368 21,800 23,117 24,412 25,955 26,031 27,136 28,041 28,006 29,395 CAM 83,289 85,787 88,361 91,012 93,742 96,555 99, , , ,673 CAM w/15% Admin 94, , , , , , , , , ,665 CAM w/10% Admin 21,956 20,649 19,664 8,270 1,104 Insurance 10,286 10,673 11,052 11,466 11,957 12,210 12,665 13,039 13,295 13,874 Taxes 104, , , , , , , , , ,430 Total Reimbursement Revenue 334, , , , , , , , , ,037 Total Potential Gross Revenue 1,580,772 1,648,579 1,709,784 1,767,664 1,853,878 1,871,325 1,942,455 2,006,407 2,027,636 2,097,492 General Vacancy (6,199) (19,031) (21,814) (4,141) (20,226) (2,971) (20,120) (18,651) (4,341) (25,870) Effective Gross Revenue 1,574,573 1,629,548 1,687,970 1,763,523 1,833,652 1,868,354 1,922,335 1,987,756 2,023,295 2,071,622 Operating Expenses Management Fee 47,237 48,886 50,639 52,906 55,010 56,051 57,670 59,633 60,699 62,149 CAM 235, , , , , , , , , ,123 Insurance 11,966 12,325 12,695 13,076 13,468 13,872 14,289 14,717 15,159 15,613 Taxes 109, , , , , , , , , ,300 Total Operating Expenses 403, , , , , , , , , ,185 Net Operating Income 1,170,957 1,214,682 1,261,483 1,324,628 1,382,231 1,405,179 1,446,531 1,498,673 1,521,514 1,556,437 Leasing & Capital Costs Tenant Improvements 55,374 8,084 19,483 33,993 17,703 21,022 24,395 31,713 35,292 27,268 Leasing Commissions 33,431 6,999 17,339 27,249 16,298 21,559 21,136 28,866 27,959 22,554 Capital Reserves 12,575 12,953 13,341 13,741 14,154 14,578 15,016 15,466 15,930 16,408 Total Leasing & Capital Costs 101,380 28,036 50,163 74,983 48,155 57,159 60,547 76,045 79,181 66,230 Cash Flow Before Debt Service 1,069,577 1,186,646 1,211,320 1,249,645 1,334,076 1,348,020 1,385,984 1,422,628 1,442,333 1,490,207 D UBOIS GIANULIAS

8 REDDING, CALIFORNIA Area Malls and Major Retailers OASIS RD 5 LAKE BLVD 273 SHASTA COLLEGE SUNSET PLAZA Sunset Market BUENAVENTURA BUENAVENTURA BUENAVENTURA BUENAVENTURA BUENAVENTURA BUENAVENTURA BUENAVENTURA BUENAVENTURA BUENAVENTURA BL BL BL BL BL BL BL BL BL Sacramento River EUREKA WY Rite Aid PLACER HEIGHTS PLAZA Holiday Market, Longs Drugs ATHENS PLAZA OSH, Pier 1, McMahons NORTH POINT PLAZA Raley's, Shopko Dollar Tree, Factory 2U PLACER ST Safeway BENTON FIELD Walgreens COURT COURT COURT COURT COURT COURT COURT COURT COURT ST ST ST ST ST ST ST ST ST SUBJECT PROPERTY COBBLESTONE SHOPPING CENTER 273 N MARKET MARKET MARKET MARKET MARKET MARKET MARKET MARKET MARKET ST ST ST ST ST ST ST ST ST R E D D I N G HILLTOP HILLTOP HILLTOP HILLTOP HILLTOP HILLTOP HILLTOP HILLTOP HILLTOP DR DR DR DR DR DR DR DR DR Bed Bath & Beyond, TJ Maxx, Best Buy, Cost Plus, Pier 1, Michaels Walgreens Toys R Us (Dark) SHASTA CENTER Gottschalk's, Petco PARK MARINA MARINA MARINA MARINA MARINA MARINA MARINA MARINA MARINA DR BECHELLI LN COBBLESTONE COURT S S BONNYVIEW RD CHURN CREEK RD CYPRESS PLAZA Office Depot DANA DR E CYPRESS AVE VICTOR VICTOR VICTOR VICTOR VICTOR VICTOR VICTOR VICTOR VICTOR AVE AVE AVE AVE AVE AVE AVE AVE AVE SIMPSON UNIVERSITY MT SHASTA MALL WinCo Foods Macy's, JCPenney, Sears OLD ALTURAS RD Mervyn's Circuit City Walgreens Target DISCOVERY VILLAGE 44 Big 5 Grocery Outlet SHASTA VIEW DR CHURN CREEK Safeway, Longs Drugs Rite Aid Lowe's HARTNELL AVE Kmart, Ross, 99 Cent Only Office Max, Barnes & Nobles Home Depot Wal-Mart Costco RANCHO RD OLD OLD OLD OLD OLD OLD OLD OLD OLD OREGON OREGON OREGON OREGON OREGON OREGON OREGON OREGON OREGON TRL TRL TRL TRL TRL TRL TRL TRL TRL SHASTA CROSSROADS Food Maxx, Blockbuster Holiday Market AIRPORT RD 0 1 / 2 1 M i l e s CLEAR CLEAR CLEAR CLEAR CLEAR CLEAR CLEAR CLEAR CLEARCREEK CREEK CREEK CREEK CREEK CREEK CREEK CREEK CREEKRD RD RD RD RD RD RD RD RD WESTWOOD VILLAGE Holiday Market, Rite-Aid, Perko's, Carl's John DuBois john.dubois@cbre.com Mark Denholm mark.denholm@cbre.com Jon Gianulias jon.gianulias@cbre.com REDDING MUNICIPAL AIRPORT Joe DuBois joe.dubois@cbre.com 2006 CB Richard Ellis, Inc. We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction Seller herby advises receiving party that Seller is not currently the owner of the property, and receiving party expressly acknowledges and understands that any transaction contemplated herein is expressly subject to and conditioned upon Seller becoming the owner of the Property pursuant to successful completion of the pending merger between seller and Pan Pacific Retail Properties, Inc.

EASTRIDGE PLAZA - PORTERVILLE, CA

EASTRIDGE PLAZA - PORTERVILLE, CA DuBois Gianulias www.cbre.com/dg ACCEPTING OFFERS IMMEDIATELY Exclusively Offered By Jon Gianulias Senior Vice President 916.446.8787 jon.gianulias@cbre.com John DuBois