315 N Telegraph Rd Waterford, MI 48328

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1 315 N Telegraph Rd Waterford, MI 48328

2 Contents Reis Observer 3 Metro Analysis Section 1 - Current Metro Rent Details 12 Section 2 - Nonanchor Rent Growth Comparisons 12 Section 3 - Current Metro Rent Details 13 Section 4 - Nonanchor Rent Growth Comparisons 13 Section 5 - Current Metro Vacancy Details 14 Section 6 - Vacancy Rate Comparisons 14 Section 7 - Current Metro Vacancy Details 15 Section 8 - Vacancy Rate Comparisons 15 Section 9 - Nonanchor Rent Growth Comparisons and Forecast 16 Section 10 - Vacancy Rate Comparisons and Forecast 16 Section 11 - Metro Inventory Detail 17 Section 12 - Inventory Growth Comparison 17 Section 13 - Construction/Absorption Change 18 Section 14 - Construction Deliveries 19 Section 15 - Submarket New Construction Project Tally 19 Section 16 - Metro Inventory Detail 20 Section 17 - Construction/Absorption Change 20 Section 18 - Occupancy at Completion 21 Section 19 - Stabilization Data 21 Section 20 - New Construction Listing 22 Section 21 - Submarket Snapshot 28 Section 22 - Economic and Demographic Trends 29 Section 23 - Metro Area - Detroit 30 Section 24 - Metro Data 31 Section 25 - Metro Data 32 Section 26 - Metro Data 33 Submarket Analysis Section 27 - Current Submarket Rent Details 35 Section 28 - Nonanchor Rent Growth Comparisons 35 Section 29 - Current Submarket Rent Details 36 Section 30 - Nonanchor Rent Growth Comparisons 36 Section 31 - Current Submarket Vacancy Details 37 Section 32 - Vacancy Rate Comparisons 37 Section 33 - Current Submarket Vacancy Details 38 Section 34 - Vacancy Rate Comparisons 38 Section 35 - Nonanchor Rent Growth Comparisons and Forecast 39 Section 36 - Vacancy Rate Comparisons and Forecast 39 Section 37 - Submarket Inventory Detail 40 Section 38 - Inventory Growth Comparison 40 Section 39 - Construction/Absorption Change 41 Section 40 - Submarket Data 42 Section 41 - Submarket Data 43 Section 42 - Submarket Data 44 Rent Comps Sales Comparables

3 Reis Observer

4 Reis Observer Retail - Asset Advisor Reis Observer January DETROIT 12, 2009 Published January 12, 2009 THE ECONOMY General Motors Corp., Ford Motor Co., and Chrysler LLC are fighting for their lives. Large stretches of Detroit are already dead. That is the sad verdict on the city by Bloomberg News, and after nearly a decade of employment and population losses heading into the worst economy in nearly 60 years, the rest of the Detroit metropolitan area is faring little better. The population of the once vibrant manufacturing hub that grew up around the 20th century expansion of the auto business has contracted to less than 850,000 from a peak of 1.9 million in the 1950s. More fallout is expected as the area s biggest industry eliminates jobs...that exodus has left Detroit with the highest poverty and foreclosure rates in the U.S. and, at 10.1% in October in the area including Livonia and Dearborn, one of the steepest measures of unemployment in the nation as well. According to Current Employment Survey (CES) data from the Bureau of Labor Statistics (BLS), non-farm payroll employment in the broader MSA fell every year from 2001 to 2007, and the record for 2008 may approach the loss in 2001, currently the worst year of the lot. As of September 2008 employment was down by 60,900 (3.1%) from September 2007, a far faster pace of decline than a year earlier. Household-based data from the BLS shows a decline of 24,900 employed residents in the metro area, including the self-employed, in the year to September 2008, actually an improvement compared with the decrease of about 40,000 in the previous 12 months. The decrease in the labor force also slowed as the employment decline spread across the U.S., as there are no longer growing areas for Detroiters to move to in search of jobs. All this, moreover, was before the dramatic events as the Big Three automakers, the mainstays of Michigan s economy, headed for bankruptcy as consumer demand and the credit markets collapsed. As of this writing, it is difficult to imagine where a turnaround will come from. The only sectors not in steep decline are Government, which lost 700 jobs (0.3%) in the year to September, and the substantially governmentfinanced Health Care and Social Assistance, which added 5,400 (2.2%). The most catastrophic employment declines on a percentage basis may be found in Manufacturing (down 27,200 or 10.6%) and Construction and related trades (down 10,800 or 14.2%). Even before the latest round of job cuts and plant closings, the Motor Vehicle Manufacturing industry had lost 29.2% of its Detroit-area jobs in the year to September 2008, for an employment decrease of 13,100. The bellwether Employment Services Employment: BLS reports a seasonally unadjusted unemployment rate of 8.3% in September for the Detroit MSA, up from 7.8% a year earlier. Moody s Economy.com reports a third quarter 2008 average household income of $104,728 for Detroit. Average household incomes of $120,066 and $111,381 are reported for the top metros in the nation and Midwest region, respectively. Jobs Added (000's) Government 12% Leisure & Hospitality 9% Employment Growth Jobs Added Employment by Sector: Education & Health Svc. 14% Retail Trade & Consumer Svc. 15% Rate of Growth Source: BLS 5% 4% 3% 2% 1% 0% -1% -2% -3% -4% Manufacturing 13% Constr, Trans, Util, Nat. Rsrce 7% Wholesale 5% Information 2% Finance 6% Prof. & Business Svc. 17% Source: BLS Rate of Growth 1 Copyright 2009 Reis, Inc. Page 4

5 industry, which includes temporary workers, implies intensifying losses, with a 7.1% employment decrease (6,100) year-over-year. Detroit has seen decades of fruitless renewal efforts as successive mayors built sports stadiums, welcomed casinos and renovated the riverfront, according to Bloomberg, all mostly in vain. The last major dose of good news for the city was in early 2006, when it successfully hosted Super Bowl XL, calling national attention to the region s many amenities. That year, according to the Associated Press, the Winter Blast festival, which was timed to occur during Super Bowl weekend, attracted an estimated 1.2 million people and cost about $3 million. For 2009, the budget for the event is $250,000, less than a quarter of last year's budget of $1.1 million. Organizers say they expect more than 200,000 attendees, down from more than half a million in The Detroit Free Press, moreover, reported the Greektown Casino is expected to run out of cash in December, hampering its ability to continue operating or to finish building its new hotel, which is slated to open in February. The casino is in bankruptcy court. Leisure and Hospitality employment, meanwhile, is down 2,600 (1.4%) year-over-year in metro Detroit. Reis Observer Retail - Asset Advisor Reis Observer January DETROIT 12, 2009 Published January 12, 2009 OUTLOOK Michigan has infrastructure, educational and cultural assets, and is surrounded by natural resources and beauty. Housing and commercial space is now unbelievably inexpensive. Water is plentiful. At some point, one might assume, people and businesses in more expensive and drier places would be attracted to this relative abundance. Moody s Economy.com continues to predict this revival, pushing it out year-byyear. The latest forecast calls for employment growth to resume in 2009, with 11,900 jobs added (0.6%), and strengthen in 2010, with 33,400 (1.7%). Broader economic events since that forecast, however, imply a sharp downward revision and yet another year of suffering for the city, metro area and state. As of the date of this writing, the Big Three are proposing month-long production shutdowns, and GM and Chrysler are discussing a merger that would wipe out thousands of jobs. 2 Copyright 2009 Reis, Inc. Page 5

6 Reis Observer Retail - Asset Advisor Reis Observer January DETROIT 12, 2009 Published January 12, 2009 THE REAL ESTATE MARKET OFFICE Despite the industrial decline of metropolitan Detroit, it is the office market that is suffering most with a 23.9% vacancy rate for its million-square-foot multitenant segment. That is the highest among the top markets tracked by Reis in the third quarter of Square Feet (000's) 4,000 3,000 2,000 1, ,000-2,000-3,000-4,000 Detroit Office Supply and Demand Trends Completed Absorbed Vacancy Rate Source: Reis, Inc. That is up 150 basis points from the previous quarter and 300 year-overyear despite the absence of new supply since first quarter. Only 20,000 square feet more are expected to deliver through the end of The vacancy rate has been rising with few interruptions since 2000, when it was last below 10.0%, as net absorption has been consistently negative. The 1.2 million square feet of negative net absorption for third quarter brought the year-to-date 2008 total to negative 2.2 million. Reis projects negative 3.35 million for the year, the worst year yet, with negative 871,000 forecast for The vacancy rate is forecast to rise above 25.0% and stay there. Rent are falling, with the average asking rent down 0.3% for third quarter, to $19.59 psf, and the average effective rent down 1.4% to $15.73 psf. The year-over-year decrease is 0.7% and 3.1%, respectively. The Class A asking average is just $22.52 psf, little more than the $18.04 psf rate for Class B/C, and it is falling faster. Reis predicts respective decreases of 0.7% and 2.2% this year, the eighth negative year in a row, flat rents for 2009, and minimal gains for Grubb & Ellis reports a vacancy rate of 23.0% for 69.6 million square feet of both multi-tenant and single-tenant space, and an average asking rent of $23.38 psf for Class A and $20.20 psf for Class B. The sub-prime crisis could lead to another round of consolidations as the credit crunch slows the movement of capital and hinders business according to this source. 30% 25% 20% 15% 10% 5% 0% Vacancy Rate Special Real Estate Factors: Office: General Motors Corp. says it is looking to take out a mortgage on its towering headquarters complex as it continues efforts to raise cash to operate in an era of tight credit, the Associated Press reported in early October. GM moved to the complex, built by Ford Motor Co.'s real estate arm in the 1970s, from Midtown Detroit in It took out a $626 million mortgage to buy the buildings and pay for millions worth of improvements, including a huge atrium overlooking the Detroit River and the Windsor, Ontario, skyline. The automaker paid off the initial mortgage when it expired in May, and since then has been looking to raise cash with another financing deal. Don't expect a rebirth, even if GM does sell its Renaissance Center, the Wall Street Journal warned at the end of that month. The potential sale of one of Detroit's most prominent properties comes as area building owners have taken cold comfort in knowing they already have been tested by high vacancy rates and falling rents, challenges that are new to many of their counterparts in healthier U.S. markets just now facing slowing demand. The increasingly tenuous state of the U.S. car makers is causing new fear. A potential merger of GM and Chrysler LLC would likely result in a flood of surplus properties. 3 Copyright 2009 Reis, Inc. Page 6

7 Reis Observer Retail - Asset Advisor Reis Observer January DETROIT 12, 2009 Published January 12, 2009 APARTMENT The 214,200-unit Detroit-area apartment market can no longer buck the metro area decline, as the negative net absorption of 321 units pushed the vacancy rate up 20 basis points to 6.3% in the third quarter No. of Units 5,000 4,000 3,000 2,000 1, ,000-2,000-3,000 Detroit Apartment Supply and Demand Trends Completed Absorbed Vacancy Rate Source: Reis, Inc. of 2008, according to Reis. Net absorption was strong at 2,824 units in 2007, as foreclosures pushed former homeowners into the rental market, but Reis expects net absorption to total negative 447 units in 2008 and negative 276 in The occupied rental stock, moreover, is more than 3,500 units lower as of third quarter than at year-end Fortunately the total rental stock is barely higher than it was at the end of 2002, thanks to limited development. Having averaged nearly 2,500 new units per year in the 1990 to 2002 period, annual completion volumes have been below 500 in most years since. Reis reports 217 apartment units completed by the end of the third quarter, up considerably from the total posted (93) at the quarter s beginning, leaving 365 under construction. Although 1,209 condominium units were also being built at that time, following the third quarter completion of 174, Reis predicts apartment completion totals will remain modest and vacancy will peak at around 7.0% in Rents rose by a limited amount. The average asking rent increased 0.4% to $836 per month, and the average effective rent 0.3% to $772 per month. The year-over-year gains are just 0.8% and 0.7% respectively, and Reis predicts no increase in the fourth quarter of 2008 and for the year as a whole. Rent gains are also forecast to be minimal in 2009, with gradual improvements thereafter. The average effective rent has not fallen since 2003 despite the metro area s problems, according to Reis, though the fourth quarter of 2008 will test that record. Marcus & Millichap predicts a 6.5% vacancy rate and an $838 per month average asking rent for metropolitan Detroit at year-end % 7% 6% 5% 4% 3% 2% 1% 0% Vacancy Rate Special Real Estate Factors: Continued Apartment: With enough abandoned lots to fill the city of San Francisco, Motown is 138 square miles divided between expanses of decay and emptiness and tracts of still-functioning communities and commercial areas, Bloomberg News reported. Close to six barren acres of an estimated 17,000 have already been turned into 500 minifarms,'' demonstrating the lengths to which planners will go to make land productive. Even attempts at redevelopment are now concentrated in a small area. Current projects are concentrated downtown, along the Detroit River and in a four-mile corridor along Woodward Avenue to GM's former headquarters, now a state office building. The National Association of Realtors has stopped reporting median existing home sales price data for metropolitan Detroit, but a local source reports a stunningly low number. Average prices for the metro area declined 45.4% to $62,800; last November, the average price was $115,000, according to the Detroit News, even with home sales rising. With 10% down and the 4.5% interest rate the Federal Reserve is targeting, that implies a monthly mortgage payment of just $285 for 30 years. In the city of Detroit the average price of a home dropped 55% to $18,578 in the first nine months of the year, 4 Copyright 2009 Reis, Inc. Page 7

8 Reis Observer Retail - Asset Advisor Reis Observer January DETROIT 12, 2009 Published January 12, 2009 RETAIL Vacancy has reached double digits for the Detroit MSA s 33- million-square-foot neighborhood and community shopping center market, as Reis reports a rate of 10.0% for the third quarter of That is up 30 basis points from the prior quarter and 100 Square Feet (000's) 2,000 1,500 1, ,000 Detroit Retail Supply and Demand Trends Completed Absorbed Vacancy Rate Source: Reis, Inc. year-over-year, and is the highest Reis has ever recorded here. Although development has slowed, with just 171,000 square feet forecast to complete in 2008 compared with an average of 478,000 per year in the 1993 to 2007 period, net absorption has turned negative. The 64,000 square feet of negative demand for third quarter brings the year-to date total to negative 220,000. With new supply picking up in 2009, Reis predicts the vacancy rate will reach 12.0% before leveling off. Power center vacancy is also on the rise, as developments started during the consumer spending boom finish in the glut. Reis reports nearly 1.5 million square feet of power center space under construction at the close of the third quarter, including the 450,000-square-foot second phase of Fairlane Green, which completed subsequently in Allen Park in November. Reis reports third quarter vacancy for power centers at 7.5%. Neighborhood and community center rents fell in the third quarter, with the average asking rent down 0.3% to $17.59 psf and average effective rent down 0.7% to $15.87 psf. The year over year losses are 0.2% and 1.2%, respectively, and although the effective average has not fallen here over a full year since 1991, Reis predicts a 1.3% decrease for 2008 and a 0.6% decrease for For power centers, Reis reports a third quarter average asking rent of $19.88 psf, down 0.3% year-over-year. For all space, Marcus & Millichap predicts a vacancy rate of 11.4% and an average asking rent of $17.63 per month for year-end Despite the economic collapse, the decline in the retail sector has not been nearly as sharp as elsewhere according to this source. 14% 12% 10% 8% 6% 4% 2% 0% Vacancy Rate Special Real Estate Factors: Continued according to the Detroit Board of Realtors, as cited by Bloomberg News. Retail: Say your prayers. Speakers on a real estate panel stressed the need for innovative ideas to bring about a rebound and gave continued bad news about the Metro Detroit real estate market, Crain s Detroit Business reported. A related report forecasts value losses, rising foreclosures and reduced property values in 2009 and overall sour conditions until The Detroit region did not fare well in the report s assessment. It was ranked last of 51 markets for commercial investment, commercial development and for-sale homebuilding. The panel called residential building lots and distressed condos the best investments, with the multifamily and industrial sectors given a buy/hold rating. A hold rating was given for office and hotels. And pray for retail, an executive told the gathering. The retailers who are expanding have been in the thrift stores category. The closings of Linens N Things and Circuit City stories have had an impact in the retail market and who knows what will happen after the holidays. The retail vacancy rate in Southeast Michigan is 11.7%, he said, 5 Copyright 2009 Reis, Inc. Page 8

9 Reis Observer Retail - Asset Advisor Reis Observer January DETROIT 12, 2009 Published January 12, 2009 TRANSACTION ANALYTICS Office Not surprisingly given the state of the local economy, office investment sales have come to a halt in metropolitan Detroit, with Reis having yet to identify a significant non-portfolio third quarter 2008 transaction. The first and second quarters of the year were slow as well, with four and three transactions for $37 million and $22 million respectively. The price per square foot fell to just $52 in the second quarter, with weak rents and high vacancy pushing the mean transaction cap rate down to 6.3% that quarter. The 12-month rolling mean cap rate is at 8.3%, and Reis expects it to increase to 10.0% by the end of 2012.* Apartment Apartment investment sales were robust until the second quarter of 2008, but then started to weaken. Third quarter saw three buildings change hands for $22.6 million and an average of under $34,000 per unit. The mean cap rate for the quarter is 8.1%, and the 12- month rolling mean is 8.3%. It is forecast to rise to the vicinity of 10.0% by the end of 2009, and stay there. * Retail The $8.2 million in retail property that changed hands in the third quarter in just two transactions is the lowest Reis has recorded here; in 2005 and early 2006 more than $100 million in sales took place every quarter. Although the mean sales price of $302 psf is high, it is unlikely to be representative. The 12-month rolling mean cap rate of 9.2% for the quarter is the highest Reis has recorded since early The rate is forecast to reach the vicinity of 10.0% by the end of 2009 before leveling off.* * Reis Transaction Analytics includes single sale transactions of $2,000,000 and greater, and excludes portfolio sales where pricing 6 Copyright 2009 Reis, Inc. of individual buildings cannot be confirmed. Page 9

10 Reis Observer Retail - Asset Advisor Reis Observer January DETROIT 12, 2009 Published January 12, 2009 INDUSTRIAL With the state of Detroit Industrial Supply and Demand Trends the economy 6,000 14% persistently drying 4,000 12% up demand from 2,000 10% traditional industrial 0 8% space users (i.e. -2,000 6% manufacturing -4,000 4% companies closely -6,000 2% associated with the -8,000 0% automotive Completed Absorbed Vacancy Rate industry), nontraditional Source: Reis, Inc. users have begun to spring up, taking advantage of the significant supply and declining occupancy cost of industrial space, Grubb & Ellis reported. This source put the third quarter 2008 vacancy rate for a 365 millionsquare-foot market including single-tenant space at 13.4%, down 20 basis points from the prior quarter. Net absorption is positive, (albeit not by much), for the quarter and year-to-date according to this source, and space under construction is a mere 402,000 square feet. The third quarter average asking rent is $4.98 psf, Grubb & Ellis reported. The significant supply of available industrial space on the market will allow tenants to shop around and secure favorable lease rates. Square Feet (000's) The vacancy rate has fluctuated between 11.0% and 12.0% since 2002 in the 297-million-square-foot multi-tenant non-manufacturing segment of the industrial real estate market tracked by Reis. Following negative net absorption in 2007, the vacancy rate was 11.8% at the start of Reis predicts net absorption will be near zero in 2008 and modest in the following two years, as the rate remains near the top of that range. A net absorption boom is bound to happen eventually, and Reis currently puts the date at 2011, at which time vacancy is forecast to fall. Rent gains are forecast to be limited until then, generally in the vicinity of 1.0%, but under the circumstances that is a good performance: Reis recorded falling rents each year from 2001 to The asking and effective average rents were $5.05 and $4.80 psf at the start of 2008, much lower than in With vacancy rates at 14.5% in Wayne County; 8.4% in Macomb County; 15.2% in Livingston County; and 10.2% in Oakland County, the abundance of available space on the market discourages the prospect of new, unoccupied development projects, Heartland Real Estate Business reported. Vacancy Rate Special Real Estate Factors: Continued which is actually lower than it has been in past years, when it had been as high as 14%. Industrial: Larger companies continue to downsize and relocate to smaller facilities, which has left a great deal of vacant industrial space in the marketplace, Heartland Real Estate Business reported. However, the Interstate 96 corridor of Oakland County is still seeing some degree of growth and development. High-tech space in Novi remains a bright spot for the industrial sector. There are multiple projects under construction in the Beck North Corporate Park, as well as some firstgeneration, flex space available in the US 23 Corridor. This area is desirable for buyers and tenants due to its centralized proximity to Vacancy Sector 3Q08 3Q07 Chg Office 23.9% 20.9% 300 bps Multifamily 6.3% 6.6% -30 bps Retail 10.0% 9.0% 100 bps Industrial 11.8% 11.1% 70 bps Rents Sector 3Q08 3Q07 Chg Office $19.59 psf $19.73 psf -0.7% Multifamily $836 month $829 month 0.8% Retail $17.59 psf $17.62 psf -0.2% Industrial $5.05 psf $4.95 psf 2.0% For additional metro and submarket level information on the top 80 markets for the four principal property types, visit or call Reis at: (800) 366-REIS. 7 Copyright 2009 Reis, Unless Inc. otherwise indicated, economic and demographic data provided by Moody s Economy. com Page 10 Publication Date: January Reis, Inc.

11 Metro Analysis

12 Retail - Asset Advisor 4th Quarter 2008 Neighborhood Shopping Centers Section 1 - Current Metro Rent Details Nonanchor Asking Rent by Age Year Built Rent Before 1970 $ $ $ $18.70 After 1999 $20.42 All $15.78 As of 12/31/08 Nonanchor Asking Rent Distribution Low 25% Mean Median 75% High $ 7.78 $11.95 $15.78 $15.49 $18.62 $27.89 Number of Properties Under $10.75 $13.52 $16.29 $19.06 $21.83 $24.60 $27.37 $10.74 $13.51 $16.28 $19.05 $21.82 $24.59 $27.36 Over Nonanchor Asking Rent Growth Rate Distribution Number of Properties Low 25% Mean Median 75% High - 8.4% - 0.7% - 0.8% - 0.4% 0.0% 3.5% Under - 7.5% - 6.0% - 4.5% - 3.0% - 1.5% 0.0% - 7.6% - 6.1% - 4.6% - 3.1% - 1.6% - 0.1% 1.4% 4 1.5% Over 152 Negative Growth Positive Growth 61 Anchor Asking Rent Distribution As of 12/31/08 Qtr Ending 12/31/08 Low 25% Mean Median 75% High $ 5.00 $ 9.70 $11.91 $11.53 $14.04 $17.86 Section 2 - Nonanchor Rent Growth Comparisons As of 12/31/08 Quarterly Asking Rent Growth Annualized 4Q08 3Q08 YTD Avg 1 Year 3 Year 5 Year Detroit - 0.8% - 0.3% - 0.3% - 1.1% 0.4% 1.4% Midwest - 0.3% 0.1% 0.0% 0.2% 1.5% 1.9% United States - 0.4% - 0.1% 0.1% 0.3% 2.5% 2.8% Average over period ending: 12/31/08 09/30/08 12/31/08 12/31/08 12/31/08 12/31/08 Metro Rank Total Metro Ranks Compared to: Metros 4Q08 3Q08 YTD 1 Year 3 Year 5 Year Midwest United States Quarterly Rent Growth Rate Trends % Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 Detroit Midwest US Period ending 12/31/08 % 4.0 Asking Rent Growth Rate Trends Detroit Midwest US Period ending 12/31/08 Copyright 2009 Reis, Inc. Page 12

13 Retail - Asset Advisor 4th Quarter 2008 Community Shopping Centers Section 3 - Current Metro Rent Details Nonanchor Asking Rent by Age Year Built Rent Before 1970 $ $ $ $22.03 After 1999 $27.77 All $18.38 As of 12/31/08 Nonanchor Asking Rent Distribution Low 25% Mean Median 75% High $ 8.53 $14.14 $18.38 $16.12 $23.51 $ Number of Properties Under $10.75 $13.52 $16.29 $19.06 $21.83 $24.60 $27.37 $10.74 $13.51 $16.28 $19.05 $21.82 $24.59 $27.36 Over Nonanchor Asking Rent Growth Rate Distribution Low 25% Mean Median 75% High -18.6% - 0.6% - 0.8% 0.0% 0.9% 3.7% Number of Properties Under - 7.5% - 6.0% - 4.5% - 3.0% - 1.5% 0.0% - 7.6% - 6.1% - 4.6% - 3.1% - 1.6% - 0.1% 1.4% 9 1.5% Over 32 Negative Growth Positive Growth 45 Anchor Asking Rent Distribution As of 12/31/08 Qtr Ending 12/31/08 Low 25% Mean Median 75% High $ 6.00 $ 8.13 $12.91 $12.00 $15.00 $23.66 Section 4 - Nonanchor Rent Growth Comparisons As of 12/31/08 Quarterly Asking Rent Growth Annualized 4Q08 3Q08 YTD Avg 1 Year 3 Year 5 Year Detroit - 0.8% - 0.3% 0.0% - 0.1% 0.5% 1.2% Midwest - 0.2% - 0.2% 0.0% 0.2% 1.4% 1.9% United States - 0.3% - 0.1% 0.1% 0.3% 2.2% 2.5% Average over period ending: 12/31/08 09/30/08 12/31/08 12/31/08 12/31/08 12/31/08 Metro Rank Total Metro Ranks Compared to: Metros 4Q08 3Q08 YTD 1 Year 3 Year 5 Year Midwest United States % Quarterly Rent Growth Rate Trends 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 Detroit US Midwest Period ending 12/31/08 % Asking Rent Growth Rate Trends Detroit Midwest US Period ending 12/31/08 Copyright 2009 Reis, Inc. Page 13

14 Retail - Asset Advisor 4th Quarter 2008 Neighborhood Shopping Centers Section 5 - Current Metro Vacancy Details Vacancy Rate By Age Year Built Vac. Rate Before % % % % After % All 13.7% As of 12/31/08 Number of Properties Vacancy Rate Distribution Low 25% Mean Median 75% High 0.0% 3.7% 13.7% 8.6% 19.9% 48.3% Under 5.0% 5.1% 10.1% 15.1% 20.1% 25.1% 30.1% 35.1% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% Over As of 12/31/08 Section 6 - Vacancy Rate Comparisons Quarterly Vacancy Rates Annualized 4Q08 3Q08 YTD Avg 1 Year 3 Year 5 Year Detroit 13.7% 13.6% 13.1% 12.7% 11.5% 10.0% Midwest 12.9% 12.2% 12.1% 11.9% 10.8% 9.9% United States 10.0% 9.2% 9.1% 9.0% 8.2% 7.7% Average over period ending: 12/31/08 09/30/08 12/31/08 12/31/08 12/31/08 12/31/08 Metro Rank Total Metro Ranks Compared to: Metros 4Q08 3Q08 YTD 1 Year 3 Year 5 Year Midwest United States % Quarterly Vacancy Rates 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 Detroit Midwest US Period ending 12/31/08 % Vacancy Rate Trends Detroit Midwest US Period ending 12/31/08 Copyright 2009 Reis, Inc. Page 14

15 Retail - Asset Advisor 4th Quarter 2008 Community Shopping Centers Section 7 - Current Metro Vacancy Details Vacancy Rate By Age Year Built Vac. Rate Before % % % % After % All 8.5% As of 12/31/08 Number of Properties Vacancy Rate Distribution Low 25% Mean Median 75% High 0.0% 2.4% 8.5% 4.8% 8.6% 26.9% Under 5.0% 5.1% 10.1% 15.1% 20.1% 25.1% 30.1% 35.1% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% Over As of 12/31/08 Section 8 - Vacancy Rate Comparisons Quarterly Vacancy Rates Annualized 4Q08 3Q08 YTD Avg 1 Year 3 Year 5 Year Detroit 8.5% 8.1% 8.3% 8.3% 8.8% 9.2% Midwest 10.4% 10.2% 10.0% 9.8% 9.2% 9.1% United States 8.0% 7.7% 7.6% 7.4% 7.1% 7.2% Average over period ending: 12/31/08 09/30/08 12/31/08 12/31/08 12/31/08 12/31/08 Metro Rank Total Metro Ranks Compared to: Metros 4Q08 3Q08 YTD 1 Year 3 Year 5 Year Midwest United States % Quarterly Vacancy Rates 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 Detroit Midwest US Period ending 12/31/08 % Vacancy Rate Trends Detroit Midwest US Period ending 12/31/08 Copyright 2009 Reis, Inc. Page 15

16 Retail - Asset Advisor 4th Quarter 2008 Neighborhood and Community Shopping Centers Section 9 - Nonanchor Rent Growth Comparisons and Forecast Quarterly Asking Rent Growth Annualized 4Q08 3Q08 YTD Avg 1 Year 3 Year 5 Year 5 Yr Forecast Detroit - 0.8% - 0.3% - 0.1% - 0.5% 0.4% 1.2% - 0.2% Midwest - 0.2% - 0.1% 0.0% 0.2% 1.4% 1.9% - 0.1% United States - 0.4% - 0.1% 0.1% 0.3% 2.3% 2.7% - 0.1% Average over period ending: 12/31/08 09/30/08 12/31/08 12/31/08 12/31/08 12/31/08 12/31/13 Metro Rank Total Metro Ranks Compared to: Metros 4Q08 3Q08 YTD 1 Year 3 Year 5 Year 5 Yr Forecast Midwest United States % Asking Rent Growth Rate Trends and Forecast Detroit Midwest US Period ending 12/31/13 Section 10 - Vacancy Rate Comparisons and Forecast Quarterly Vacancy Rates Annualized 4Q08 3Q08 YTD Avg 1 Year 3 Year 5 Year 5 Yr Forecast Detroit 10.4% 10.1% 10.1% 9.9% 9.8% 9.5% 13.5% Midwest 11.4% 11.0% 10.8% 10.7% 9.8% 9.4% 14.6% United States 8.9% 8.4% 8.3% 8.2% 7.6% 7.4% 11.3% Average over period ending: 12/31/08 09/30/08 12/31/08 12/31/08 12/31/08 12/31/08 12/31/13 Metro Rank Total Metro Ranks Compared to: Metros 4Q08 3Q08 YTD 1 Year 3 Year 5 Year 5 Yr Forecast Midwest United States % Vacancy Rate Trends and Forecast Detroit Midwest US Period ending 12/31/13 Copyright 2009 Reis, Inc. Page 16

17 Retail - Asset Advisor 4th Quarter 2008 Neighborhood and Community Shopping Centers Section 11 - Metro Inventory Detail Inventory By Center Age Year Built Percent Before % % % % After % All 100.0% As of 12/31/08 Shopping Center Stock Traits Metro Low Mean Median High Year Built Size (sq. ft.) 6,000 96,017 73, ,199 Distance to Highway (miles) Distance to CBD (miles) Distance to Landmark (miles) As of 12/31/08 Landmark =Detroit River Average Metro Lease Terms Current Inventory Level Properties Square Feet ,595,000 As of 12/31/08 Anchor/ Nonanchor CRD % Free Rent (mos) Expenses $ (Commercial) Lease Term (yrs) Leasing Commission % A - 5.7% 3.2 $ % $ 7.55 N - 6.1% 2.4 $ % $ 7.56 Neighborhood and Community Shopping Centers Section 12 - Inventory Growth Comparison Tenant Improvements $ Quarterly Inventory Growth Rates Annualized 4Q08 3Q08 YTD Avg 1 Year 3 Year 5 Year 5 Yr Forecast Detroit 0.2% 0.1% 0.1% 0.3% 1.0% 1.2% 0.6% Midwest 0.2% 0.3% 0.2% 0.8% 1.4% 1.6% 0.7% United States 0.3% 0.2% 0.3% 1.1% 1.4% 1.5% 0.9% Average over period ending: 12/31/08 09/30/08 12/31/08 12/31/08 12/31/08 12/31/08 12/31/13 Metro Rank Total Metro Ranks Compared to: Metros 4Q08 3Q08 YTD 1 Year 3 Year 5 Year 5 Yr Forecast Midwest United States % Inventory Growth Comparisons and Forecast Detroit Midwest US Period ending 12/31/13 Copyright 2009 Reis, Inc. Page 17

18 Retail - Asset Advisor 4th Quarter 2008 Neighborhood and Community Shopping Centers Section 13 - Construction/Absorption Change Sq Ft Built Construction and Absorption Quarterly 4Q08 3Q08 YTD Avg Sq Ft Absorbed Con/Abs Ratio Sq Ft Built Sq Ft Absorbed Con/Abs Ratio Sq Ft Built Sq Ft Absorbed Detroit 52,000-59, ,000-63, , , Midwest 672, , , , , , Con/Abs Ratio Average over period ending: 12/31/08 12/31/08 12/31/08 09/30/08 09/30/08 09/30/08 12/31/08 12/31/08 12/31/08 Sq Ft Built Construction and Absorption Annualized 1 Year History 3 Year History 5 Year History Sq Ft Absorbed Con/Abs Ratio Sq Ft Built Sq Ft Absorbed Con/Abs Ratio Sq Ft Built Sq Ft Absorbed Detroit 92, , , , , , Midwest 3,008,000-2,819, ,797, , ,532,200 2,866, Con/Abs Ratio Average over period ending: 12/31/08 12/31/08 12/31/08 12/31/08 12/31/08 12/31/08 12/31/08 12/31/08 12/31/08 Construction and Absorption Sq Ft Built Annualized 5 Year Forecast Sq Ft Absorbed Con/Abs Ratio Detroit 197,000 2, Midwest 2,542, , Average over period ending: 12/31/13 12/31/13 12/31/13 Construction/Absorption and Vacancy ,000 Square Feet 0-500, Vacancy Rate (%) Vacancy Rate Construction Absorption Period ending 12/31/13 Copyright 2009 Reis, Inc. Page 18

19 Retail - Asset Advisor 4th Quarter 2008 Section 14 - Construction Deliveries Completed SF SF Under Construction Totals Planned Proposed Totals 2008 YTD Neighborhood 71, , , , , , ,200 Community 20, , , ,000 50, ,062 Power Center 820, , ,000 1,855, , , ,000 Regional , ,000 Mixed Use , , , ,500 Other 13, , , , ,519 Totals 925, , ,000 2,352,300 2,792, ,781 3,745,281 Metro Construction by Project Type Metro Construction by Top Five Submarkets Share % 15.8 % 11.3 % 8.0 % 27.6 % 10.0 % 0.6 % 16.7 % 13.4 % 41.3 % Neighborhood Community Power Regional Mixed Use Other 18.5 % 21.2 % Detroit/West Wayne North Oakland 99-Outer Counties South Oakland Macomb Other Submarkets in Metro Includes all recently completed, under construction, planned, and proposed properties from the table above. Note that some verified listings for planned and proposed properties do not yet have a firm completion date. Section 15 - Submarket New Construction Project Tally Submarket Neigh/ Comm 1. Completed 2. Under Construction 3. Planned/Proposed Power/ Reg. Other Neigh/ Comm Power/ Reg. Other Neigh/ Comm Detroit/West Wayne , , , ,519 North Oakland , , ,000 South Oakland , , ,500 Macomb ,000 38,200 35, , ,200 S. Detroit/Downriver , , ,000 Non-Submarketed Areas , , , ,695,062 Power/ Reg. Other Grand Total Copyright 2009 Reis, Inc. Page 19

20 Retail - Asset Advisor 4th Quarter 2008 Section 16 - Metro Inventory Detail Inventory By Center Age Year Built Percent Before % % % % After % All 100.0% As of 12/31/08 Current Inventory Level Properties Square Feet ,595,000 % Market Rate Rental Inventory Growth Trend and Forecast As of 12/31/08 Midwest Region Cumulative Inventory Growth Forecast Ranking National Cumulative Inventory Growth Forecast Ranking Metro Cumulative Growth Forecast Rank Metro Cumulative Growth Forecast Rank Omaha 5.8% 1 Knoxville 10.9% 1 Wichita 3.3% 7 Cleveland 3.1% 8 Detroit 3.0% 9 Indianapolis 2.5% 10 Milwaukee 2.4% 11 Columbus 2.0% 13 Cleveland 3.1% 55 Chattanooga 3.1% 56 Detroit 3.0% 57 Tampa-St. Petersburg 2.9% 58 Portland 2.9% 59 Syracuse 0.6% 76 Section 17 - Construction/Absorption Change Sq Ft Built Construction and Absorption Quarterly 4Q08 3Q08 YTD Avg Sq Ft Absorbed Con/Abs Ratio Sq Ft Built Sq Ft Absorbed Con/Abs Ratio Sq Ft Built Sq Ft Absorbed Detroit 52,000-59, ,000-63, , , Midwest 672, , , , , , Con/Abs Ratio Average over period ending: 12/31/08 12/31/08 12/31/08 09/30/08 09/30/08 09/30/08 12/31/08 12/31/08 12/31/08 Sq Ft Built Annualized 1 Year History 3 Year History 5 Year History Sq Ft Absorbed Con/Abs Ratio Sq Ft Built Sq Ft Absorbed Con/Abs Ratio Sq Ft Built Sq Ft Absorbed Detroit 92, , , , , , Midwest 3,008,000-2,819, ,797, , ,532,200 2,866, Con/Abs Ratio Average over period ending: 12/31/08 12/31/08 12/31/08 12/31/08 12/31/08 12/31/08 12/31/08 12/31/08 12/31/08 Copyright 2009 Reis, Inc. Page 20

21 Retail - Asset Advisor 4th Quarter 2008 Section 18 - Occupancy at Completion Occupancy at Completion Comparisons 80 Occupancy (%) Detroit Overall Occupancy Detroit Occupancy at Completion Midwest Occupancy at Completion US Occupancy at Completion Occupancy at Completion Comparisons Properties Built in: Detroit 81.6% 41.7% 76.3% 74.5% 38.1% 82.3% 78.7% Midwest 78.1% 76.1% 79.3% 76.1% 80.1% 70.1% 70.1% United States 82.2% 82.0% 82.6% 79.4% 80.7% 72.1% 62.8% *Occupation at completion is calculated for all properties completed during each individual calendar year Section 19 - Stabilization Data % 60.0 New Construction Quarters to Stabilization 50.0 Vacancy (%) Quarters After Completion Long Term Metro Vacancy Average Stabilization Data Construction Year: YTD No.of Properties Tracked Properties Stabilized 0-4 Quarters After Completion Properties Stabilized 5-8 Quarters After Completion Properties Stabilized 9-12 Quarters After Completion Properties Stabilized 13+ Quarters After Completion Properties That Have Not Yet Stabilized Stabilization is reached when the average vacancy of the properties built in any given year equals or is less than the metro's average overall vacancy for the last five years. "0" in the Quarters After Completion chart above represents the vacancy at completion. Copyright 2009 Reis, Inc. Page 21

22 Retail - Asset Advisor 4th Quarter 2008 Neighborhood and Community Shopping Centers Section 20 - New Construction Listing No. Property Name and Address Date As Of Secondary Type County Size (Sq Ft) Est. Groundbreak Est. Completion Status Submarket:Detroit/West Wayne 1 2 CADILLAC CENTRE (RETAIL) MONROE WOODWARD AVE DETROIT, MI THE SHOPPES AT GATEWAY PARK WOODWARD EIGHT MILE RD DETROIT, MI Community WAYNE 100,000 Planned Lifestyle Center WAYNE 330,000 Planned 3 OUTLOT LYON TOWNE CENTER MILFORD I-96 DETROIT, MI Free Standing WAYNE 8,250 Proposed 4 OUTLOT LYON TOWNE CENTER MILFORD I-96 DETROIT, MI Free Standing WAYNE 30,000 Proposed 5 OUTLOT LYON TOWNE CENTER MILFORD I-96 DETROIT, MI Free Standing WAYNE 30,000 Proposed 6 OUTLOT LYON TOWNE CENTER MILFORD I-96 DETROIT, MI Free Standing WAYNE 30,000 Proposed 7 OUTLOT LYON TOWNE CENTER MILFORD I-96 DETROIT, MI Free Standing WAYNE 6,500 Proposed 8 OUTLOT LYON TOWNE CENTER MILFORD I-96 DETROIT, MI Free Standing WAYNE 8,570 Proposed 9 OUTLOT LYON TOWNE CENTER MILFORD I-96 DETROIT, MI Free Standing WAYNE 5,600 Proposed 10 OUTLOT LYON TOWNE CENTER MILFORD I-96 DETROIT, MI Free Standing WAYNE 10,600 Proposed FAIRLANE GREEN PH II 3349 FAIRLAND OUTER DR/I-94 ALLEN PARK, MI UNSPECIFIED OUTPARCEL AT CANTON CORNERS MALL FORD LILLEY RD CANTON, MI UNSPECIFIED OUTPARCEL AT CANTON CORNERS MALL FORD LILLEY RD CANTON, MI Power Center WAYNE 450,000 11/2008 Complete Free Standing WAYNE 8,000 8/ /2007 Complete Free Standing WAYNE 4,000 8/ /2007 Complete 14 OUTLOT LYON TOWNE CENTER MILFORD I-96 DETROIT, MI Free Standing WAYNE 14,299 Proposed Copyright 2009 Reis, Inc. Page 22

23 Retail - Asset Advisor 4th Quarter 2008 No. Property Name and Address Date As Of Secondary Type County Size (Sq Ft) Est. Groundbreak Est. Completion Status 15 WONDERLAND VILLAGE PH I PLYMOUTH MIDDLEBELT RD LIVONIA, MI Power Center WAYNE 429,000 3/2006 9/2007 Complete 16 WESTLAND CENTER PH IV FORD WAYNE RD WESTLAND, MI Community WAYNE 10,000 Proposed 17 PLYMOUTH TOWNE CENTER PH I NWC ANN ARBOR HAGGERTY RD PLYMOUTH, MI Neighborhood WAYNE 40,000 7/2007 7/2008 Complete 18 CROSSROADS VILLAGE MICHIGAN BECK RD CANTON, MI Power Center WAYNE 300,000 4/2008 Complete 19 SHOPPES OF FAIRLANE MEADOWS FORD MERCURY DR DEARBORN, MI Neighborhood WAYNE 20,080 6/2006 1/2007 Complete 20 WONDERLAND VILLAGE PH II PLYMOUTH MIDDLEBELT RD LIVONIA, MI Power Center WAYNE 70,000 2/2008 Complete UPTOWN RETAIL CENTER PH II CHERRY HILL N RIDGE RD CANTON, MI UNNAMED RETAIL PROJECT HOLBROOK CHAREST ST HAMTRAMCK, MI PLYMOUTH TOWNE CENTER PH II NWC ANN ARBOR HAGGERTY RD PLYMOUTH, MI PLYMOUTH TOWNE CENTER PH III NWC ANN ARBOR HAGGERTY RD PLYMOUTH, MI Community WAYNE 75,000 Planned Neighborhood WAYNE 9,000 4/2009 Under Constr Neighborhood WAYNE 110,000 Planned Neighborhood WAYNE 30,000 Planned 25 OUTLOT LYON TOWNE CENTER MILFORD I-96 DETROIT, MI Free Standing WAYNE 5,600 Proposed 26 OUTLOT LYON TOWNE CENTER MILFORD I-96 DETROIT, MI Free Standing WAYNE 11,100 Proposed Submarket:Macomb 27 HERITAGE VILLAGE TOWNE CENTER PH II NWC MOUND E 12 MILE RD WARREN, MI Community MACOMB 20,000 4/ /2008 Complete 28 RETAIL WORKS PLAZA-MACOMB GARFIELD RD MACOMB, MI Neighborhood MACOMB 11,685 1/ /2007 Complete 29 AVA CENTER VAN 30 MILE RD/31 MILE RD WASHINGTON TOWNSHIP, MI Neighborhood MACOMB 31,620 1/ /2008 Complete Copyright 2009 Reis, Inc. Page 23

24 Retail - Asset Advisor 4th Quarter 2008 No. Property Name and Address Date As Of Secondary Type County Size (Sq Ft) Est. Groundbreak Est. Completion Status NORDSTROM AT PARTRIDGE CREEK MALL ROMEO PLANK GARFIELD RD CLINTON TOWNSHIP, MI MALL AT PARTRIDGE CREEK HALL GARFIELD RD CLINTON TOWNSHIP, MI PARISIAN AT PARTRIDGE CREEK MALL HALL GARFIELD RD CLINTON TOWNSHIP, MI WATERSIDE MARKETPLACE WATERSIDE 23 MILE RD NEW BALTIMORE, MI MACOMB MALL PH II GRATIOT MASONIC BLVD ROSEVILLE, MI THE SHOPS AT STONYCREEK 26 MILE VAN DYKE RD SHELBY TOWNSHIP, MI STERLING HEIGHTS CENTER DEQUINDRE METROPOLITAN PKWY STERLING HEIGHTS, MI Regional MACOMB 129,000 10/2007 Complete Regional MACOMB 640,000 10/2007 Complete Regional MACOMB 120,000 11/2007 Complete Power Center MACOMB 400,000 6/ /2007 Complete Regional MACOMB 35,000 Planned Lifestyle Center MACOMB 350,000 Planned Community MACOMB 280,000 6/2007 Complete 37 THE VILLAGE AT SHELBY 24 MILE VAN DYKE RD SHELBY, MI Mixed Use MACOMB 11,000 8/2009 Under Constr. 38 PLAZA AT THE POINTE PH II 23 MILE JEFFERSON RD NEW BALTIMORE, MI Neighborhood MACOMB 25,200 Proposed 39 FOUNTAINS OF MACOMB PH II(RETAIL B) HAYES 21 MILE RD MACOMB, MI Neighborhood MACOMB 13,000 Planned Submarket:North Oakland VILLAGE LAKES PLAZA HIGHLAND ELIZABETH LAKE RD WHITE LAKE, MI CITY WALK PH III N ROCHESTER TIENKEN RD ROCHESTER HILLS, MI Community OAKLAND 181,000 8/2007 3/2009 Under Constr Neighborhood OAKLAND 42,000 Planned 42 RETAIL WORKS PLAZA-AUBURN HILLS JOSLYN I-75 AUBURN HILLS, MI Neighborhood OAKLAND 14,170 12/ /2007 Complete ADAMS MARKETPLACE PH I VETERANS MEMORIAL ADAMS RD ROCHESTER HILLS, MI ADAMS MARKETPLACE PH III VETERANS MEMORIAL ADAMS RD ROCHESTER HILLS, MI Community OAKLAND 230,000 12/2007 Complete Community OAKLAND 300,000 Planned Copyright 2009 Reis, Inc. Page 24

25 Retail - Asset Advisor 4th Quarter 2008 No. Property Name and Address Date As Of Secondary Type County Size (Sq Ft) Est. Groundbreak Est. Completion Status ADAMS MARKETPLACE PH II VETERANS MEMORIAL ADAMS RD ROCHESTER HILLS, MI PERRY STREET RETAIL CENTER 1850 N PERRY E WALTON BLVD PONTIAC, MI STONEWOOD CENTER STONEWOOD DIXIE HWY/I-75 CLARKSTON, MI Community OAKLAND 18,000 Planned Neighborhood OAKLAND 32,000 2/2009 Under Constr Neighborhood OAKLAND 76,000 Planned 48 BLOOMFIELD PARK PH I TELEGRAPH SQUARE LAKE RD BLOOMFIELD HILLS, MI Power Center OAKLAND 535,000 Under Constr CITY WALK PH II N ROCHESTER TIENKEN RD ROCHESTER HILLS, MI CITY WALK PH IV 1414 N ROCHESTER W TIENKEN RD ROCHESTER HILLS, MI DUTTON RETAIL CENTER 4433 INTERPARK DUTTON RD/LAPEER RD AUBURN HILLS, MI Neighborhood OAKLAND 50,000 Planned Neighborhood OAKLAND 37,000 Planned Community OAKLAND 24,000 4/2009 Under Constr. Submarket:Not in a Reis submarket GEORGETOWN COMMONS PACKARD GLADSTONE AVE ANN ARBOR, MI UNNAMED RETAIL CENTER JACKSON BAKER RD ANN ARBOR, MI Neighborhood WASHTENAW 91,000 Proposed Power Center WASHTENAW 626,000 Proposed 54 BAY RIVER MARKETPLACE 26 MILE I-94 NEW HAVEN, MI Power Center MACOMB 500,000 8/2007 6/2009 Under Constr. 55 THE CORNERS OF FORT GRATIOT NWC 24TH KEEWAHDIN RD FORT GRATIOT, MI Power Center ST. CLAIR 115,857 11/2007 Complete 56 SOUTH BRANCH CENTER PH II N LAPEER DALEY RD LAPEER, MI Community LAPEER 10,140 10/2007 Complete 57 LOWER TOWN DEVELOPMENT BROADWAY MAIDEN LN ANN ARBOR, MI Community WASHTENAW 138,000 12/2010 Planned 58 SOUTH BRANCH CENTER PH III N LAPEER DALEY RD LAPEER, MI Community LAPEER 40,062 Proposed 59 BRECKON COMMONS 930 E MICHIGAN N MAPLE RD SALINE, MI Neighborhood WASHTENAW 53,000 8/2006 6/2007 Complete Copyright 2009 Reis, Inc. Page 25

26 Retail - Asset Advisor 4th Quarter 2008 No. Property Name and Address Date As Of Secondary Type County Size (Sq Ft) Est. Groundbreak Est. Completion Status 60 CROSSROADS AT LAPEER S LAPEER RD LAPEER, MI Power Center LAPEER 300,000 Planned 61 GREEN OAK VILLAGE PLACE LEE HWY 23 BRIGHTON, MI Power Center LIVINGSTON 500,000 4/2005 3/2007 Complete Submarket:S. Detroit/Downriver WHISPERING WOODS PH II GIRBRALTAR RD BROWNSTOWN TOWNSHIP, MI SAVELAND CENTER 8370 PELHAM CHAMPAIGN ST TAYLOR, MI DIX TOLEDO RD FAMILY DOLLAR 810 DIX TOLEDO OUTER DR LINCOLN PARK, MI WOODHAVEN COMMONS PH III ALLEN WEST RD BROWNSTOWN, MI Neighborhood WAYNE 40,000 Planned Neighborhood WAYNE 15,000 4/2009 Under Constr Free Standing WAYNE 13,680 11/2007 7/2008 Complete Neighborhood WAYNE 50,000 Planned Submarket:South Oakland UNNAMED RETAIL PROJECT W 13 MILE COOLIDGE HWY ROYAL OAK, MI WEST MARKET SQUARE PH II NWC GRAND RIVER BECK RD NOVI, MI TRIBUTE AT WIXOM VILLAGE CENTER PH II NEC WIXOM PONTIAC TRAIL WIXOM, MI PAVILIONS OF TROY (RETAIL) NWC BIG BEAVER COOLIDGE HWY TROY, MI VILLAGE CENTER OF WIXOM PH II (EAST) N WIXOM PONTIAC TRL WIXOM, MI Neighborhood OAKLAND 140,000 Planned Community OAKLAND 24,000 1/ /2007 Complete Neighborhood OAKLAND 27,000 Planned Mixed Use OAKLAND 500,000 Planned Mixed Use OAKLAND 31,500 Planned 71 NOVI TOWNE CENTER PH II NOVI I-96 NOVI, MI Community OAKLAND 25,000 4/ /2007 Complete 72 GREENFIELD RD AND W 10 MILE RD PH II GREENFIELD W 10 MILE RD OAK PARK, MI Neighborhood OAKLAND 15,000 2/2007 8/2007 Complete 73 TWELVE OAKS MALL PH III NOVI 12 MILE RD NOVI, MI Regional OAKLAND 300,000 9/2007 Complete 74 THE COPPERWOOD 10 MILE JOHNS RD SOUTH LYON, MI Neighborhood OAKLAND 120,000 Under Constr. Copyright 2009 Reis, Inc. Page 26

27 Retail - Asset Advisor 4th Quarter 2008 No. Property Name and Address Date As Of Secondary Type County Size (Sq Ft) Est. Groundbreak Est. Completion Status 75 MAPLE RD AT CROOKS MAPLE CROOKS RD TROY, MI Neighborhood OAKLAND 10,000 9/2006 2/2007 Complete Copyright 2009 Reis, Inc. Page 27

28 Retail - Asset Advisor 4th Quarter 2008 Section 21 - Submarket Snapshot Submarket Anchor/ Nonanchor Inventory (Buildings) Inventory (Sq Ft) Asking Rent $ CRD % Vac % Free Rent (mos) Expenses $ (Commercial) Lease Term (yrs) Leasing Commission % Tenant Improvements $ Detroit/West Wayne A 63 4,260,000 $ % 9.4% 3.7 $ % $ 8.47 Detroit/West Wayne N 81 4,858,000 $ % 10.9% 2.9 $ % $ 6.68 S. Detroit/Downriver A 17 1,474,000 $ % 29.7% 3.3 $ % $ 8.44 S. Detroit/Downriver N 27 1,161,000 $ % 16.1% 2.3 $ % $13.25 Macomb A 43 4,669,000 $ % 4.0% 2.6 $ % $ 7.60 Macomb N 64 3,343,000 $ % 14.5% 2.6 $ % $ 6.55 North Oakland A 32 2,701,000 $ % 4.2% 2.4 $ % $ 6.88 North Oakland N 47 3,143,000 $ % 12.0% 2.3 $ % $ 7.00 South Oakland A 37 3,541,000 $ % 7.5% 3.7 $ % $ 6.50 South Oakland N 72 3,445,000 $ % 12.1% 1.8 $ % $ 8.39 Copyright 2009 Reis, Inc. Page 28

29 Retail - Asset Advisor 4th Quarter 2008 Section 22 - Economic and Demographic Trends Household Income Growth Trends Metro vs. Region & U.S. Percentage Change 6.0% 4.0% 2.0% 0.0% -2.0% Detroit Midwest US Provided by Economy.com, Period ending 12/31/13 Total Employment Growth Trends Metro vs. Region & U.S. Percentage Change 2.0% 0.0% -2.0% -4.0% Detroit Midwest US Provided by Economy.com, Period ending 12/31/13 Percentage Change 0.8% 0.6% 0.4% 0.2% 0.0% -0.2% -0.4% Detroit Population/Household Growth Trends Population Households Provided by Economy.com, Period ending 12/31/13 Copyright 2009 Reis, Inc. Page 29

30 Retail - Asset Advisor 4th Quarter 2008 Section 23 - Metro Area - Detroit Detroit Submarkets 1 Detroit/West Wayne 2 South Detroit/Downriver 3 Macomb 4 North Oakland 5 South Oakland Copyright 2009 Reis, Inc. Page 30

31 Retail - Asset Advisor 4th Quarter 2008 Neighborhood Shopping Centers Section 24 - Metro Data Year Qtr Inventory SF/Units Completions Inventory Growth% Vacant Stock Vacancy Rate Vacancy Change(%) Occupied Stock Net Absorption Asking Rent Ask Rent % Chg 2003 Y 11,265, , % 715, % 0.5% 10,550,000 79,000 $ % 2004 Y 11,484, , % 810, % 0.8% 10,674, ,000 $ % 2005 Y 11,769, , % 1,113, % 2.4% 10,656,000-18,000 $ % 2006 Y 11,976, , % 1,337, % 1.7% 10,639,000-17,000 $ % ,986,000 10, % 1,388, % 0.4% 10,598,000-41,000 $ % ,986, % 1,290, % - 0.8% 10,696,000 98,000 $ % ,001,000 15, % 1,299, % 0.0% 10,702,000 6,000 $ % ,027,000 26, % 1,401, % 0.8% 10,626,000-76,000 $ % 2007 Y 12,027,000 51, % 1,401, % 0.4% 10,626,000-13,000 $ % ,027, % 1,500, % 0.9% 10,527,000-99,000 $ % ,027, % 1,532, % 0.2% 10,495,000-32,000 $ % ,067,000 40, % 1,638, % 0.9% 10,429,000-66,000 $ % ,119,000 52, % 1,664, % 0.1% 10,455,000 26,000 $ % 2008 Y 12,119,000 92, % 1,664, % 2.1% 10,455, ,000 $ % Year Qtr Effective Rent Eff Rent % Cons/Abs Chg Abs/Occ Stock% Population Pop% Chg Employment Emp% Chg Households HH% Chg Avg HH Income AHHI% Chg 2003 Y $ % % 4,647, % 2,096, % 1,771, % $94, % 2004 Y $ % % 4,651, % 2,096, % 1,773, % $95, % 2005 Y $ % % 4,646, % 2,087, % 1,772, % $96, % 2006 Y $ % % 4,627, % 2,025, % 1,766, % $98, % $ % % 4,619, % 2,020, % 1,763, % $100, % $ % % 4,611, % 2,012, % 1,760, % $100, % $ % % 4,607, % 2,006, % 1,760, % $101, % $ % % 4,601, % 1,989, % 1,760, % $101, % 2007 Y $ % % 4,601, % 1,989, % 1,760, % $101, % $ % % 4,592, % 1,980, % 1,758, % $102, % $ % % 4,588, % 1,965, % 1,759, % $103, % $ % % 4,588, % 1,953, % 1,761, % $103, % $ % % 4,588, % 1,920, % 1,762, % $102, % 2008 Y $ % % 4,588, % 1,920, % 1,762, % $102, % Copyright 2009 Reis, Inc. Page 31

32 Retail - Asset Advisor 4th Quarter 2008 Community Shopping Centers Section 25 - Metro Data Year Qtr Inventory SF/Units Completions Inventory Growth% Vacant Stock Vacancy Rate Vacancy Change(%) Occupied Stock Net Absorption Asking Rent Ask Rent % Chg 2003 Y 19,401, % 1,824, % - 0.4% 17,577,000 86,000 $ % 2004 Y 19,427,000 26, % 2,080, % 1.3% 17,347, ,000 $ % 2005 Y 19,862, , % 2,033, % - 0.5% 17,829, ,000 $ % 2006 Y 19,917,000 55, % 1,712, % - 1.6% 18,205, ,000 $ % ,917, % 1,648, % - 0.3% 18,269,000 64,000 $ % ,197, , % 1,624, % - 0.3% 18,573, ,000 $ % ,197, % 1,644, % 0.1% 18,553,000-20,000 $ % ,476, , % 1,641, % - 0.1% 18,835, ,000 $ % 2007 Y 20,476, , % 1,641, % - 0.6% 18,835, ,000 $ % ,476, % 1,741, % 0.5% 18,735, ,000 $ % ,476, % 1,657, % - 0.4% 18,819,000 84,000 $ % ,476, % 1,654, % 0.0% 18,822,000 3,000 $ % ,476, % 1,739, % 0.4% 18,737,000-85,000 $ % 2008 Y 20,476, % 1,739, % 0.5% 18,737,000-98,000 $ % Year Qtr Effective Rent Eff Rent % Cons/Abs Chg Abs/Occ Stock% Population Pop% Chg Employment Emp% Chg Households HH% Chg Avg HH Income AHHI% Chg 2003 Y $ % % 4,647, % 2,096, % 1,771, % $94, % 2004 Y $ % % 4,651, % 2,096, % 1,773, % $95, % 2005 Y $ % % 4,646, % 2,087, % 1,772, % $96, % 2006 Y $ % % 4,627, % 2,025, % 1,766, % $98, % $ % % 4,619, % 2,020, % 1,763, % $100, % $ % % 4,611, % 2,012, % 1,760, % $100, % $ % % 4,607, % 2,006, % 1,760, % $101, % $ % % 4,601, % 1,989, % 1,760, % $101, % 2007 Y $ % % 4,601, % 1,989, % 1,760, % $101, % $ % % 4,592, % 1,980, % 1,758, % $102, % $ % % 4,588, % 1,965, % 1,759, % $103, % $ % % 4,588, % 1,953, % 1,761, % $103, % $ % % 4,588, % 1,920, % 1,762, % $102, % 2008 Y $ % % 4,588, % 1,920, % 1,762, % $102, % Copyright 2009 Reis, Inc. Page 32

33 Retail - Asset Advisor 4th Quarter 2008 Neighborhood and Community Shopping Centers Section 26 - Metro Data Year Qtr Inventory SF/Units Completions Inventory Growth% Vacant Stock Vacancy Rate Vacancy Change(%) Occupied Stock Net Absorption Asking Rent Ask Rent % Chg 2003 Y 30,666, , % 2,539, % - 0.1% 28,127, ,000 $ % 2004 Y 30,911, , % 2,890, % 1.0% 28,021, ,000 $ % 2005 Y 31,631, , % 3,146, % 0.6% 28,485, ,000 $ % 2006 Y 31,893, , % 3,049, % - 0.3% 28,844, ,000 $ % ,903,000 10, % 3,036, % - 0.1% 28,867,000 23,000 $ % ,183, , % 2,914, % - 0.4% 29,269, ,000 $ % ,198,000 15, % 2,943, % 0.0% 29,255,000-14,000 $ % ,503, , % 3,042, % 0.3% 29,461, ,000 $ % 2007 Y 32,503, , % 3,042, % - 0.2% 29,461, ,000 $ % ,503, % 3,241, % 0.6% 29,262, ,000 $ % ,503, % 3,189, % - 0.2% 29,314,000 52,000 $ % ,543,000 40, % 3,292, % 0.3% 29,251,000-63,000 $ % ,595,000 52, % 3,403, % 0.3% 29,192,000-59,000 $ % 2008 Y 32,595,000 92, % 3,403, % 1.0% 29,192, ,000 $ % 2009 Y 32,949, , % 4,203, % 2.4% 28,746, ,000 $ % 2010 Y 32,949, % 4,522, % 0.9% 28,427, ,000 $ % 2011 Y 33,110, , % 4,676, % 0.4% 28,434,000 7,000 $ % 2012 Y 33,326, , % 4,649, % - 0.1% 28,677, ,000 $ % 2013 Y 33,581, , % 4,377, % - 1.0% 29,204, ,000 $ % Year Qtr Effective Rent Eff Rent % Cons/Abs Chg Abs/Occ Stock% Population Pop% Chg Employment Emp% Chg Households HH% Chg Avg HH Income AHHI% Chg 2003 Y $ % % 4,647, % 2,096, % 1,771, % $94, % 2004 Y $ % % 4,651, % 2,096, % 1,773, % $95, % 2005 Y $ % % 4,646, % 2,087, % 1,772, % $96, % 2006 Y $ % % 4,627, % 2,025, % 1,766, % $98, % $ % % 4,619, % 2,020, % 1,763, % $100, % $ % % 4,611, % 2,012, % 1,760, % $100, % $ % % 4,607, % 2,006, % 1,760, % $101, % $ % % 4,601, % 1,989, % 1,760, % $101, % 2007 Y $ % % 4,601, % 1,989, % 1,760, % $101, % $ % % 4,592, % 1,980, % 1,758, % $102, % $ % % 4,588, % 1,965, % 1,759, % $103, % $ % % 4,588, % 1,953, % 1,761, % $103, % $ % % 4,588, % 1,920, % 1,762, % $102, % 2008 Y $ % % 4,588, % 1,920, % 1,762, % $102, % 2009 Y $ % % 4,581, % 1,820, % 1,765, % $99, % 2010 Y $ % % 4,581, % 1,830, % 1,771, % $101, % 2011 Y $ % % 4,582, % 1,875, % 1,785, % $104, % 2012 Y $ % % 4,584, % 1,923, % 1,800, % $108, % 2013 Y $ % % 4,588, % 1,930, % 1,812, % $110, % Copyright 2009 Reis, Inc. Page 33

34 Submarket Analysis

35 Retail - Asset Advisor 4th Quarter 2008 Neighborhood Shopping Centers Section 27 - Current Submarket Rent Details Submarket: North Oakland Nonanchor Asking Rent by Age Year Built Rent Before 1970 $ $ $ $17.58 After 1999 $18.77 All $16.92 As of 12/31/08 Nonanchor Asking Rent Distribution Low 25% Mean Median 75% High $ 9.92 $11.90 $16.92 $15.87 $19.84 $ Number of Properties Under $12.46 $14.99 $17.52 $20.05 $22.58 $25.11 $27.64 $12.45 $14.98 $17.51 $20.04 $22.57 $25.10 $27.63 Over Nonanchor Asking Rent Growth Rate Distribution Number of Properties Low 25% Mean Median 75% High - 9.2% - 0.5% - 1.3% - 0.4% - 0.1% 0.0% Under - 7.8% - 6.5% - 5.2% - 3.9% - 2.6% - 1.3% 0.0% - 7.9% - 6.6% - 5.3% - 4.0% - 2.7% - 1.4% - 0.1% Over 30 Negative Growth Positive Growth Anchor Asking Rent Distribution As of 12/31/08 Qtr Ending 12/31/08 Low 25% Mean Median 75% High $ 5.59 $ 9.00 $11.94 $12.00 $15.00 $17.57 Section 28 - Nonanchor Rent Growth Comparisons As of 12/31/08 % Quarterly Asking Rent Growth Annualized 4Q08 3Q08 YTD Avg 1 Year 3 Year 5 Year North Oakland - 1.3% - 1.9% - 0.6% - 2.5% 0.5% 1.5% Detroit - 0.8% - 0.3% - 0.3% - 1.1% 0.4% 1.4% Midwest - 0.3% 0.1% 0.0% 0.2% 1.5% 1.9% United States - 0.4% - 0.1% 0.1% 0.3% 2.5% 2.8% Average over period ending: 12/31/08 09/30/08 12/31/08 12/31/08 12/31/08 12/31/08 Submarket Rank Total Submarket Ranks Compared to: Subs 4Q08 3Q08 YTD 1 Year 3 Year 5 Year Detroit Midwest United States Asking Rent Growth Rate Trends % Quarterly Rent Growth Rate Trends 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 North Oakland Detroit US Midwest North Oakland Detroit Midwest US Period ending 12/31/ Period ending 12/31/08 Copyright 2009 Reis, Inc. Page 35

36 Retail - Asset Advisor 4th Quarter 2008 Community Shopping Centers Section 29 - Current Submarket Rent Details Submarket: North Oakland Nonanchor Asking Rent by Age Year Built Rent Before 1970 $ $ $ $27.87 After 1999 $30.39 All $25.03 As of 12/31/08 Nonanchor Asking Rent Distribution Low 25% Mean Median 75% High $15.85 $19.17 $25.03 $26.67 $30.16 $30.16 Number of Properties Under $12.46 $14.99 $17.52 $20.05 $22.58 $25.11 $27.64 $12.45 $14.98 $17.51 $20.04 $22.57 $25.10 $27.63 Over Nonanchor Asking Rent Growth Rate Distribution Number of Properties Low 25% Mean Median 75% High - 3.7% - 3.7% - 1.0% 0.6% 0.8% 1.2% Under - 7.8% - 6.5% - 5.2% - 3.9% - 2.6% - 1.3% 0.0% - 7.9% - 6.6% - 5.3% - 4.0% - 2.7% - 1.4% - 0.1% Over 1 Negative Growth Positive Growth 6 6 Anchor Asking Rent Distribution As of 12/31/08 Qtr Ending 12/31/08 Low 25% Mean Median 75% High $ 6.63 $ 6.63 $19.75 $16.80 $20.65 $28.54 Section 30 - Nonanchor Rent Growth Comparisons As of 12/31/08 Quarterly Asking Rent Growth Annualized 4Q08 3Q08 YTD Avg 1 Year 3 Year 5 Year North Oakland - 1.0% - 0.7% 0.7% 2.7% 2.1% 2.6% Detroit - 0.8% - 0.3% 0.0% - 0.1% 0.5% 1.2% Midwest - 0.2% - 0.2% 0.0% 0.2% 1.4% 1.9% United States - 0.3% - 0.1% 0.1% 0.3% 2.2% 2.5% Average over period ending: 12/31/08 09/30/08 12/31/08 12/31/08 12/31/08 12/31/08 Submarket Rank Total Submarket Ranks Compared to: Subs 4Q08 3Q08 YTD 1 Year 3 Year 5 Year Detroit Midwest United States % Quarterly Rent Growth Rate Trends 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 North Oakland Detroit US Midwest Period ending 12/31/08 % 4.0 Asking Rent Growth Rate Trends North Oakland Detroit Midwest US Period ending 12/31/08 Copyright 2009 Reis, Inc. Page 36

37 Retail - Asset Advisor 4th Quarter 2008 Neighborhood Shopping Centers Section 31 - Current Submarket Vacancy Details Submarket: North Oakland Vacancy Rate By Age Year Built Vac. Rate Before % % % % After % All 13.3% As of 12/31/08 Number of Properties Vacancy Rate Distribution Low 25% Mean Median 75% High 0.0% 4.5% 13.3% 6.9% 15.8% 41.2% Under 5.0% 5.1% 10.1% 15.1% 20.1% 25.1% 30.1% 35.1% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% Over As of 12/31/08 Section 32 - Vacancy Rate Comparisons Quarterly Vacancy Rates Annualized 4Q08 3Q08 YTD Avg 1 Year 3 Year 5 Year North Oakland 13.3% 10.9% 11.7% 12.3% 10.2% 9.2% Detroit 13.7% 13.6% 13.1% 12.7% 11.5% 10.0% Midwest 12.9% 12.2% 12.1% 11.9% 10.8% 9.9% United States 10.0% 9.2% 9.1% 9.0% 8.2% 7.7% Average over period ending: 12/31/08 09/30/08 12/31/08 12/31/08 12/31/08 12/31/08 Submarket Rank Total Submarket Ranks Compared to: Subs 4Q08 3Q08 YTD 1 Year 3 Year 5 Year Detroit Midwest United States % Quarterly Vacancy Rates 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 North Oakland US Detroit Midwest Period ending 12/31/08 % Vacancy Rate Trends North Oakland Detroit Midwest US Period ending 12/31/08 Copyright 2009 Reis, Inc. Page 37

38 Retail - Asset Advisor 4th Quarter 2008 Community Shopping Centers Section 33 - Current Submarket Vacancy Details Submarket: North Oakland Vacancy Rate By Age Year Built Vac. Rate Before % % % % After % All 5.1% As of 12/31/08 Number of Properties Vacancy Rate Distribution Low 25% Mean Median 75% High 1.3% 1.3% 5.1% 2.4% 2.5% 11.3% 5 Under 5.0% % 10.1% 15.1% 20.1% 25.1% 30.1% 35.1% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% Over As of 12/31/08 Section 34 - Vacancy Rate Comparisons Quarterly Vacancy Rates Annualized 4Q08 3Q08 YTD Avg 1 Year 3 Year 5 Year North Oakland 5.1% 5.4% 5.0% 4.8% 5.2% 6.2% Detroit 8.5% 8.1% 8.3% 8.3% 8.8% 9.2% Midwest 10.4% 10.2% 10.0% 9.8% 9.2% 9.1% United States 8.0% 7.7% 7.6% 7.4% 7.1% 7.2% Average over period ending: 12/31/08 09/30/08 12/31/08 12/31/08 12/31/08 12/31/08 Submarket Rank Total Submarket Ranks Compared to: Subs 4Q08 3Q08 YTD 1 Year 3 Year 5 Year Detroit Midwest United States % Quarterly Vacancy Rates 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 North Oakland US Detroit Midwest Period ending 12/31/08 % Vacancy Rate Trends North Oakland Detroit Midwest US Period ending 12/31/08 Copyright 2009 Reis, Inc. Page 38

39 Retail - Asset Advisor 4th Quarter 2008 Submarket: North Oakland Neighborhood and Community Shopping Centers Section 35 - Nonanchor Rent Growth Comparisons and Forecast Quarterly Asking Rent Growth Annualized 4Q08 3Q08 YTD Avg 1 Year 3 Year 5 Year 5 Yr Forecast North Oakland - 1.1% - 1.0% 0.2% 1.0% 1.8% 2.3% - 0.2% Detroit - 0.8% - 0.3% - 0.1% - 0.5% 0.4% 1.2% - 0.2% Midwest - 0.2% - 0.1% 0.0% 0.2% 1.4% 1.9% - 0.1% United States - 0.4% - 0.1% 0.1% 0.3% 2.3% 2.7% - 0.1% Average over period ending: 12/31/08 09/30/08 12/31/08 12/31/08 12/31/08 12/31/08 12/31/13 Submarket Rank Total Submarket Ranks Compared to: Subs 4Q08 3Q08 YTD 1 Year 3 Year 5 Year 5 Yr Forecast Detroit Midwest United States % Asking Rent Growth Rate Trends and Forecast North Oakland Detroit Midwest US Period ending 12/31/13 Section 36 - Vacancy Rate Comparisons and Forecast Quarterly Vacancy Rates Annualized 4Q08 3Q08 YTD Avg 1 Year 3 Year 5 Year 5 Yr Forecast North Oakland 8.4% 7.6% 7.7% 7.8% 7.3% 7.4% 10.8% Detroit 10.4% 10.1% 10.1% 9.9% 9.8% 9.5% 13.5% Midwest 11.4% 11.0% 10.8% 10.7% 9.8% 9.4% 14.6% United States 8.9% 8.4% 8.3% 8.2% 7.6% 7.4% 11.3% Average over period ending: 12/31/08 09/30/08 12/31/08 12/31/08 12/31/08 12/31/08 12/31/13 Submarket Rank Total Submarket Ranks Compared to: Subs 4Q08 3Q08 YTD 1 Year 3 Year 5 Year 5 Yr Forecast Detroit Midwest United States % Vacancy Rate Trends and Forecast North Oakland Detroit Midwest US Period ending 12/31/13 Copyright 2009 Reis, Inc. Page 39

40 Retail - Asset Advisor 4th Quarter 2008 Section 37 - Submarket Inventory Detail Submarket: North Oakland Inventory By Center Age Year Built Percent Before % % % % After % All 100.0% As of 12/31/08 Shopping Center Stock Traits Submarket Low Mean Median High Year Built Size (sq. ft.) 10,000 88,294 70, ,199 Distance to Highway (miles) Distance to CBD (miles) Distance to Landmark (miles) As of 12/31/08 Landmark =Detroit River Average Submarket Lease Terms Current Inventory Level Properties Square Feet North Oakland 47 5,844,000 Share of Metro 16.2% 17.9% As of 12/31/08 Anchor/ Nonanchor CRD % Free Rent (mos) Expenses $ (Commercial) Lease Term (yrs) Leasing Commission % A - 4.5% 2.4 $ % $ 6.88 N - 5.5% 2.3 $ % $ 7.00 Tenant Improvements $ Section 38 - Inventory Growth Comparison Quarterly Inventory Growth Rates Annualized 4Q08 3Q08 YTD Avg 1 Year 3 Year 5 Year 5 Yr Forecast North Oakland 0.0% 0.0% 0.0% 0.0% 1.5% 1.3% 1.4% Detroit 0.2% 0.1% 0.1% 0.3% 1.0% 1.2% 0.6% Midwest 0.2% 0.3% 0.2% 0.8% 1.4% 1.6% 0.7% United States 0.3% 0.2% 0.3% 1.1% 1.4% 1.5% 0.9% Average over period ending: 12/31/08 09/30/08 12/31/08 12/31/08 12/31/08 12/31/08 12/31/13 Submarket Rank Total Submarket Ranks Compared to: Subs 4Q08 3Q08 YTD 1 Year 3 Year 5 Year 5 Yr Forecast Detroit Midwest United States % Inventory Growth Comparisons and Forecast North Oakland Detroit Midwest US Period ending 12/31/13 Copyright 2009 Reis, Inc. Page 40

41 Retail - Asset Advisor 4th Quarter 2008 Submarket: North Oakland Section 39 - Construction/Absorption Change Sq Ft Built Construction and Absorption Quarterly 4Q08 3Q08 YTD Avg Sq Ft Absorbed Con/Abs Ratio Sq Ft Built Sq Ft Absorbed Con/Abs Ratio Sq Ft Built Sq Ft Absorbed North Oakland 0-46, , , Detroit 52,000-59, ,000-63, , , Con/Abs Ratio Average over period ending: 12/31/08 12/31/08 12/31/08 09/30/08 09/30/08 09/30/08 12/31/08 12/31/08 12/31/08 Sq Ft Built Construction and Absorption Annualized 1 Year History 3 Year History 5 Year History Sq Ft Absorbed Con/Abs Ratio Sq Ft Built Sq Ft Absorbed Con/Abs Ratio Sq Ft Built Sq Ft Absorbed North Oakland 0-68, ,333 45, ,400 39, Detroit 92, , , , , , Con/Abs Ratio Average over period ending: 12/31/08 12/31/08 12/31/08 12/31/08 12/31/08 12/31/08 12/31/08 12/31/08 12/31/08 Construction and Absorption Sq Ft Built Annualized 5 Year Forecast Sq Ft Absorbed Con/Abs Ratio North Oakland 83,000 56, Detroit 197,000 2, Average over period ending: 12/31/13 12/31/13 12/31/13 Construction/Absorption and Vacancy 200, Square Feet 100, ,000 5 Vacancy Rate (%) Vacancy Rate Construction Absorption Period ending 12/31/13 Copyright 2009 Reis, Inc. Page 41

42 Retail - Asset Advisor 4th Quarter 2008 Submarket: North Oakland Neighborhood Shopping Centers Section 40 - Submarket Data Year Qtr Inventory SF/Units Completions Inventory Growth% Vacant Stock Vacancy Rate Vacancy Change(%) Occupied Stock Net Absorption Asking Rent Ask Rent % Chg 2003 Y 2,223,000 16, % 127, % 0.2% 2,096,000 10,000 $ % 2004 Y 2,312,000 89, % 187, % 2.4% 2,125,000 29,000 $ % 2005 Y 2,336,000 24, % 185, % - 0.2% 2,151,000 26,000 $ % 2006 Y 2,351,000 15, % 197, % 0.5% 2,154,000 3,000 $ % ,351, % 214, % 0.7% 2,137,000-17,000 $ % ,351, % 207, % - 0.3% 2,144,000 7,000 $ % ,351, % 240, % 1.4% 2,111,000-33,000 $ % ,365,000 14, % 267, % 1.1% 2,098,000-13,000 $ % 2007 Y 2,365,000 14, % 267, % 2.9% 2,098,000-56,000 $ % ,365, % 281, % 0.6% 2,084,000-14,000 $ % ,365, % 251, % - 1.3% 2,114,000 30,000 $ % ,365, % 258, % 0.3% 2,107,000-7,000 $ % ,365, % 315, % 2.4% 2,050,000-57,000 $ % 2008 Y 2,365, % 315, % 2.0% 2,050,000-48,000 $ % Year Qtr Effective Rent Eff Rent % Chg Cons/Abs Abs/Occ Stock% 2003 Y $ % % 2004 Y $ % % 2005 Y $ % % 2006 Y $ % % $ % % $ % % $ % % $ % % 2007 Y $ % % $ % % $ % % $ % % $ % % 2008 Y $ % % Copyright 2009 Reis, Inc. Page 42

43 Retail - Asset Advisor 4th Quarter 2008 Community Shopping Centers Section 41 - Submarket Data Submarket: North Oakland Year Qtr Inventory SF/Units Completions Inventory Growth% Vacant Stock Vacancy Rate Vacancy Change(%) Occupied Stock Net Absorption Asking Rent Ask Rent % Chg 2003 Y 3,249, % 192, % - 0.5% 3,057,000 16,000 $ % 2004 Y 3,249, % 344, % 4.7% 2,905, ,000 $ % 2005 Y 3,249, % 185, % - 4.9% 3,064, ,000 $ % 2006 Y 3,249, % 185, % 0.0% 3,064,000 0 $ % ,249, % 146, % - 1.2% 3,103,000 39,000 $ % ,249, % 120, % - 0.8% 3,129,000 26,000 $ % ,249, % 127, % 0.2% 3,122,000-7,000 $ % ,479, , % 157, % 0.6% 3,322, ,000 $ % 2007 Y 3,479, , % 157, % - 1.2% 3,322, ,000 $ % ,479, % 170, % 0.4% 3,309,000-13,000 $ % ,479, % 157, % - 0.4% 3,322,000 13,000 $ % ,479, % 188, % 0.9% 3,291,000-31,000 $ % ,479, % 177, % - 0.3% 3,302,000 11,000 $ % 2008 Y 3,479, % 177, % 0.6% 3,302,000-20,000 $ % Year Qtr Effective Rent Eff Rent % Chg Cons/Abs Abs/Occ Stock% 2003 Y $ % % 2004 Y $ % % 2005 Y $ % % 2006 Y $ % % $ % % $ % % $ % % $ % % 2007 Y $ % % $ % % $ % % $ % % $ % % 2008 Y $ % % Copyright 2009 Reis, Inc. Page 43

44 Retail - Asset Advisor 4th Quarter 2008 Submarket: North Oakland Neighborhood and Community Shopping Centers Section 42 - Submarket Data Year Qtr Inventory SF/Units Completions Inventory Growth% Vacant Stock Vacancy Rate Vacancy Change(%) Occupied Stock Net Absorption Asking Rent Ask Rent % Chg 2003 Y 5,472,000 16, % 319, % - 0.2% 5,153,000 26,000 $ % 2004 Y 5,561,000 89, % 531, % 3.7% 5,030, ,000 $ % 2005 Y 5,585,000 24, % 370, % - 2.9% 5,215, ,000 $ % 2006 Y 5,600,000 15, % 382, % 0.2% 5,218,000 3,000 $ % ,600, % 360, % - 0.4% 5,240,000 22,000 $ % ,600, % 327, % - 0.6% 5,273,000 33,000 $ % ,600, % 367, % 0.8% 5,233,000-40,000 $ % ,844, , % 424, % 0.7% 5,420, ,000 $ % 2007 Y 5,844, , % 424, % 0.5% 5,420, ,000 $ % ,844, % 451, % 0.4% 5,393,000-27,000 $ % ,844, % 408, % - 0.7% 5,436,000 43,000 $ % ,844, % 446, % 0.6% 5,398,000-38,000 $ % ,844, % 492, % 0.8% 5,352,000-46,000 $ % 2008 Y 5,844, % 492, % 1.1% 5,352,000-68,000 $ % 2009 Y 6,099, , % 720, % 3.4% 5,379,000 26,000 $ % 2010 Y 6,099, % 655, % - 1.1% 5,444,000 65,000 $ % 2011 Y 6,139,000 40, % 673, % 0.3% 5,466,000 22,000 $ % 2012 Y 6,192,000 53, % 666, % - 0.2% 5,526,000 60,000 $ % 2013 Y 6,258,000 66, % 625, % - 0.8% 5,633, ,000 $ % Year Qtr Effective Rent Eff Rent % Chg Cons/Abs Abs/Occ Stock% 2003 Y $ % % 2004 Y $ % % 2005 Y $ % % 2006 Y $ % % $ % % $ % % $ % % $ % % 2007 Y $ % % $ % % $ % % $ % % $ % % 2008 Y $ % % 2009 Y $ % % 2010 Y $ % % 2011 Y $ % % 2012 Y $ % % 2013 Y $ % % Copyright 2009 Reis, Inc. Page 44

45 Rent Comps

46 Retail - Asset Advisor Rent Rent Comparables Comparables SUBJECT PROPERTY 315 N Telegraph 315 North Rd Telegraph Waterford, Road -- 02/06/2009 MI Subject Property Location and Key Tenants Address 315 North Telegraph Road City Waterford State MI ZIP Metro Detroit Submarket North Oakland Latitude Longitude Key Tenants Subject Property Statistics Property Type Retail Property Sub-Type Enclosed Year Built Latest Renovation Total Size (SF) Comparable Group Summary Statistics COMPARABLE GROUP MARKET SUMMARY Low Mean Median High Current Asking Rent/SF (Nonanchor) $10.00 $17.25 $13.68 $35.18 Current Asking Rent/SF (Anchor) $8.00 $11.83 $12.09 $27.99 Current Vacancy Rate 0.0% 16.2% 10.1% 77.9% Total Operating Expenses PSF $2.00 $3.27 $3.46 $5.85 Real Estate Taxes PSF N/A N/A N/A N/A Property Size (SF) 10,250 51,929 48, ,000 Year Built Avg. Submarket Lease Terms Contract Rent Discount -5.5% Free Rent (months/lease) 2.3 Anchor Lease Length (years) 10.9 Nonanchor Lease Length (years) 4.5 Tenant Improvements/SF $7.00 Commissions 4.1% Copyright 2009 Reis, Inc. Page 45

47 Retail - Asset Advisor Rent Rent Comparables Comparables COMPARABLE GROUP LOCATION 315 N Telegraph 315 North Rd Telegraph Waterford, Road -- 02/06/2009 MI Copyright 2009 Reis, Inc. Page 46

48 Retail - Asset Advisor Rent Rent Comparables Comparables COMPARABLE GROUP LISTING 315 N Telegraph 315 North Rd Telegraph Waterford, Road -- 02/06/2009 MI Name Address City State Tel-Huron Shopping Center 3 S Telegraph Rd Pontiac MI Current Asking Rent (Nonanchor) $10.00 Current Asking Rent (Anchor) $9.00 Current Vacancy Rate 41.2% Distance from Subject (miles) 0.64 ZIP Property Size (SF) 74,000 County Submarket Oakland North Oakland Year Built 1954 Most Recent Renov/Expansion 2007 Center Type Neighborhood Center Anchor/Major Tenants China Express Enclosed No Payless Shoe Source Data As Of 12/31/08 Performance Tools 12,665 SF Rite Aid D 12,000 SF S&s Seafood Vacant Anchor 10,000 SF 2 Name Address City State Waterford Corners Shopping Center 3645 Highland Rd Waterford MI Current Asking Rent (Nonanchor) $12.00 Current Asking Rent (Anchor) $8.00 Current Vacancy Rate 5.8% Distance from Subject (miles) 1.65 ZIP Property Size (SF) 75,000 County Submarket Center Type Oakland North Oakland Neighborhood Center Year Built 1977 Most Recent Renov/Expansion Anchor/Major Tenants Planet Fitness 17,000 SF Enclosed No Unknown Anchor 16,196 SF Data As Of 12/31/08 3 Name Address City State Sylvan Shopping Center 2383 Orchard Lake Rd Pontiac MI Current Asking Rent (Nonanchor) $20.10 Current Asking Rent (Anchor) $16.79 Current Vacancy Rate 0.0% Distance from Subject (miles) 2.28 ZIP Property Size (SF) 41,600 County Submarket Center Type Oakland North Oakland Neighborhood Center Year Built 1955 Most Recent Renov/Expansion Anchor/Major Tenants CVS D Enclosed No Rosa Market S Data As Of 12/31/08 Unknown Anchor 10,000 SF Copyright 2009 Reis, Inc. Page 47

49 Retail - Asset Advisor Rent Rent Comparables Comparables COMPARABLE GROUP LISTING 315 N Telegraph 315 North Rd Telegraph Waterford, Road -- 02/06/2009 MI Name Sylvan Plaza (fmr Sylvan Plaza) Current Asking Rent (Nonanchor) $15.82 Address 2565 Orchard Lake Rd Current Asking Rent (Anchor) N/A City State Keego Harbor MI Current Vacancy Rate 4.8% Distance from Subject (miles) 2.45 ZIP Property Size (SF) 40,000 County Oakland Year Built Submarket North Oakland Most Recent Renov/Expansion Center Type Neighborhood Center Anchor/Major Tenants Bellacinos Enclosed No Cleaners Data As Of 12/31/08 5 Name Sawyer's Landing Current Asking Rent (Nonanchor) $12.00 Address 2965 Orchard Lake Rd Current Asking Rent (Anchor) N/A City State Keego Harbor MI Current Vacancy Rate 9.5% Distance from Subject (miles) 2.73 ZIP Property Size (SF) 10,250 County Submarket Center Type Enclosed Oakland North Oakland Neighborhood Center No Year Built 1989 Most Recent Renov/Expansion Anchor/Major Tenants Radio Shack 2,800 SF Data As Of 12/31/08 6 Name Waterford Plaza Current Asking Rent (Nonanchor) $11.86 Address 5010 Hwy 59 Current Asking Rent (Anchor) $8.00 City State Waterford MI Current Vacancy Rate 27.2% Distance from Subject (miles) 3.27 ZIP Property Size (SF) 100,000 County Submarket Oakland North Oakland Year Built 1980 Most Recent Renov/Expansion Center Type Neighborhood Center Anchor/Major Tenants Aaa Auto Club Enclosed No Aco Hardware 15,820 SF Data As Of 12/31/08 Boston Market CVS D Dollar Discount Hallmark Vac Fmr Hancock Fabr Vac Fmr Office Depot Vacant Anchor Vacant Anchor 15,660 SF 11,300 SF 11,300 SF 15,660 SF Copyright 2009 Reis, Inc. Page 48

50 Retail - Asset Advisor Rent Rent Comparables Comparables COMPARABLE GROUP LISTING 315 N Telegraph 315 North Rd Telegraph Waterford, Road -- 02/06/2009 MI Name Address City State Galloway Plaza 1620 N Perry St Pontiac MI Current Asking Rent (Nonanchor) $14.00 Current Asking Rent (Anchor) $13.46 Current Vacancy Rate 10.7% Distance from Subject (miles) 3.99 ZIP Property Size (SF) 49,131 County Submarket Oakland North Oakland Year Built 2002 Most Recent Renov/Expansion Center Type Neighborhood Center Anchor/Major Tenants Bakery Enclosed No Flagstar Bank Data As Of 12/31/08 Hair Salon Pollo Loco Unknown Anchor 9,600 SF 8 Name Address City State Woodward Square S Woodward Ave Bloomfield Hills MI Current Asking Rent (Nonanchor) $29.48 Current Asking Rent (Anchor) $17.02 Current Vacancy Rate 0.0% Distance from Subject (miles) 4.22 ZIP Property Size (SF) 48,000 County Submarket Oakland North Oakland Year Built 2002 Most Recent Renov/Expansion Center Type Neighborhood Center Anchor/Major Tenants Eye Place Enclosed No Rite Aid D 15,000 SF Data As Of 12/31/08 9 Name Address City State Bloomfield Hills Plaza 1571 S Opdyke Rd Bloomfield Hills MI Current Asking Rent (Nonanchor) $13.36 Current Asking Rent (Anchor) $10.71 Current Vacancy Rate 15.8% Distance from Subject (miles) 4.31 ZIP Property Size (SF) 70,000 County Submarket Center Type Enclosed Oakland North Oakland Neighborhood Center No Year Built 1973 Most Recent Renov/Expansion Anchor/Major Tenants Alias Brothers 6,000 SF Domino's Pizza Data As Of 12/31/08 Iga S 30,000 SF Radio Shack Copyright 2009 Reis, Inc. Page 49

51 Retail - Asset Advisor Rent Rent Comparables Comparables COMPARABLE GROUP LISTING 315 N Telegraph 315 North Rd Telegraph Waterford, Road -- 02/06/2009 MI Name The Crossings at Auburn Current Asking Rent (Nonanchor) $31.00 Address 4350 Joslyn Rd Current Asking Rent (Anchor) N/A City State Auburn Hills MI Current Vacancy Rate 77.9% Distance from Subject (miles) 4.79 ZIP Property Size (SF) 14,170 County Submarket Center Type Enclosed Oakland North Oakland Neighborhood Center No Year Built 2007 Most Recent Renov/Expansion Data As Of 12/31/08 11 Name Northway Plaza Current Asking Rent (Nonanchor) $12.09 Address 5300 Dixie Hwy Current Asking Rent (Anchor) N/A City State Waterford MI Current Vacancy Rate 19.7% Distance from Subject (miles) 4.96 ZIP Property Size (SF) 43,000 County Submarket Center Type Enclosed Oakland North Oakland Neighborhood Center No Year Built 1986 Most Recent Renov/Expansion 2005 Anchor/Major Tenants Auto Parts 8,000 SF Data As Of 12/31/08 12 Name Address City State Bloomfield Square 4099 Telegraph Rd Bloomfield Hills MI Current Asking Rent (Nonanchor) $35.18 Current Asking Rent (Anchor) $27.99 Current Vacancy Rate 0.0% Distance from Subject (miles) 4.98 ZIP Property Size (SF) 58,000 County Submarket Center Type Enclosed Oakland North Oakland Neighborhood Center No Year Built 1970 Most Recent Renov/Expansion Anchor/Major Tenants Kroger S 20,000 SF Data As Of 12/31/08 Copyright 2009 Reis, Inc. Page 50

52 Sales Comparables

53 Retail - Asset Advisor Sales Comparables Sales Comparables Retail Subject Property Location Name (None Entered) Address/Area Searched 315 North Telegraph Road, Waterford, MI, Metro Detroit Summary Statistics Low Average High * Total Size (SF) 2,402 66, ,590 * Total Anchor Area (SF) 0 43, ,917 Number of Floors Year Built Time Since Sale (Months) Sale Price $2,160,232 $8,015,405 $75,000,000 Sale Price PSF (Area Purchased) $38 $280 $958 * In the case of a partial sale, the figures shown here include only the area purchased. Total Number of Properties 20 Copyright 2009 Reis, Inc. Page 1 of 23 Copyright 2009 Reis, Inc. Page 52

54 Retail - Asset Advisor Sales Comparables Sales Comparables Retail COMPARABLE GROUP LOCATION Copyright 2009 Reis, Inc. Page 2 of 23 Copyright 2009 Reis, Inc. Page 53