C o l l i e r s I n t e r n at i o n a l r e ta i l a d v i s o r s

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1 C o l l i e r s I n t e r n at i o n a l r e ta i l a d v i s o r s COLLIERS INTERNATIONAL 1610 Arden Way, Suite 240 Sacramento, California T: F:

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3 C o l l i e r s i n t e r n at i o n a l r e ta i l a d v i s o r s Our team has almost 50 years of combined experience in the Northern California retail market. During this time, we have been part of over 850 sales and lease transactions with a cumulative value of over $3 Billion. Our Team has extensive experience in representing both tenants and landlords and both acquisition and disposition principals throughout Northern California. The depth of our team enables us to propel your requirement to completion, seamlessly bringing all sides of the successful transaction together to accelerate the goals of all involved to a positive outcome. On the landlord/tenant representation side, the team works closely with parties in the re-tenanting of existing shopping centers as well as the leasing of new retail developments. High quality marketing flyers, web pages, HTML distributions and other tools are harnessed from the Colliers extensive platform of marketing options to position your property in the marketplace. On the acquisition/disposition representation side, the team brings an extensive database and understanding of active buyers and sellers within each market and product type to each assignment. In addition to unparalleled local market knowledge, our team is part of the Colliers Investment Services Group (CISG). CISG is an elite partnership of the companies most successful Investment brokers designed to provide the utmost level of service to the client throughout the representation process. Our team is extremely hands on with all Keith Mellor Retail Leasing & Sales keith.mellor@colliers.com Scott Laeber Retail Leasing & Sales scott.laeber@colliers.com Heath Charamuga Investment Sales heath.charamuga@colliers.com Erik Neese Investment Sales erik.neese@colliers.com aspects of bringing a property to market and analyzing assets for acquisition. All financial underwriting, marketing material and negotiations are handled by our team members to facilitate effective programs for our clients. A b o u t C o l l i e r s Colliers International is one of the nation s largest publicly traded commercial real estate corporations. Specialization distinguishes us from the competition. Colliers International provides transaction services, management services, financial services, and strategic services through the 9,000 professionals in 293 offices in 61 countries. Colliers International accrued $1.442 billion in revenue in 2006 additionally; Colliers International has an annual transaction volume of $54 billion. Colliers International is a full service commercial real estate organization that is committed to constantly investigating and applying new and better ways to provide value to its clients, while exercising the highest level of service. Colliers International combines its command over 100 local markets in North America, unsurpassed research capabilities and the expertise of its over 4,400 talented professionals to ensure its clients every advantage in the market place. Colliers International is committed to accelerating your success. Whether it s sales, leasing, management or advisory services, our team of professionals offer fully integrated, knowledge driven solutions for all your commercial real estate needs. The Sacramento Colliers International office, which includes our Roseville location, is staffed with 63 professionals and 20 support staff. The office performs leasing, sales and management of retail, industrial, multi-family, office and land product. The Sacramento Colliers International Research Group, headed by Garrick Brown, publishes the industry leading market reports that we have included on a regular basis and is widely regarded as second to none. Benjamin Prater Investment Sales ben.prater@colliers.com S u m m a ry Our top priority in complete representation includes; understanding your needs, your property and your goals. Ultimately we want to ensure that you are strategically positioned in the market place.

4 R e ta i l L e a s e T R A N S A C T I O N S (partial list): 1,318 Square Feet Yuba City, CA 2,700 Square Feet Rancho Cordova, CA 2,350 Square Feet Stockton, CA 1,500 Square Feet Tracy, CA 2,537 Square Feet Sacramento, CA 1,128 Square Feet Woodland, CA 1,710 Square Feet Redding, CA 1,200 Square Feet Elk Grove, CA 1,000 Square Feet Citrus Heights, CA 1,258 Square Feet Rocklin, CA 1,100 Square Feet Roseville, CA 1,200 Square Feet Roseville, CA i n v e s t m e n t T R A N S A C T I O N S (partial list): Westlake Shopping Center Daly City, CA 569,000 Square Feet CarMax Roseville, CA 75,318 Square Feet Tassajara Shopping Center Blackhawk, CA 141,601 Square Feet College Greens Shopping Ctr Sacramento, CA 116,271 Square Feet Promenade Shopping Center Sacramento, CA 135,563 Square Feet Copperwood Shopping Ctr Sacramento, CA 144,387 Square Feet Jiffy Lube Elk Grove, CA 3,916 Square Feet Jiffy Lube Galt, CA 4,018 Square Feet

5 l a n d l o r d s R E P R E S E N T E D (partial list): AG Touchstone American Tower Systems Archon Group B & L Properties BTV Crown Equities Cadence Capital Investments Capital & Counties Development Group Catholic Healthcare West Centers Dynamic, Inc. CenterVest Capital, LLC Chase Merritt Citibank Commpros, Inc. Corlin Commercial Cottonwood Partners CP Investments Dettling Construction Folsom Square Partners ForTress Investment Group GE Capital Realty Group, Inc Glenborough Realty Trust Granite Bay Ventures Hume Development Investec Commercial, Inc. Krispy Kreme Doughnuts Disposition LaSalle Advisors Main & Main Properties, Inc. MIG Realty Advisors NovaSource California L.P. Paynter Realty & Investment Prentiss Properties RAH Properties RREEF Funds Sares Regis Group TA Associates The BentleyForbes Group, Inc The Evergreen Co Triple Net Properties Union Bank of Switzerland Valley Development Vintage Properties Wall Street Property Co. Watt Genton Associates Wells Fargo Bank Westrust Retail Properties G E O G R A P H I C N E T W O R K The team actively works throughout the following counties: Sacramento, Placer, El Dorado, Yolo, San Joaquin, Stanislaus, Amador, Solano, Yuba, Sutter, Butte, Tehama and Shasta.

6 ±1,259 SF Yogurt ±3,672 SF Photo Studio ±1,150 SF Med Wear ±2,537 SF Five Star Nails ±1,408 SF ±1,802 SF ±3,768 SF Pacific Dental ±4,032 SF PHASE II Tax GameStop ±2,245 SF LA Boxing ±12,550 SF DIVISIBLE PLAN NOT TO SCALE MEASUREMENTS ARE APPROXIMATE Strawberry Creek Shopping Center SaCramento, Ca C a p i ta l M a r k e t s V s. R e ta i l M a r k e t It appears that Greenspan kept interest rates too low for too long. With that, equity investors previously needed to be highly leveraged in order for them to achieve their desired yields. When the financial markets seized, and leverage internally was cut off, financial institutions had to shrink and de-leverage their balance sheets. The end result is that investors must now look to the assets themselves, rather than the capital structure to maintain the status quo. We had an over supply of capital for buyer and lenders alike, due to surplus savings and the expansion of strong balance sheets. After the stock market crash in April of 2000 and the subsequent dot com investment failure, capital began to move toward hard assets such as real estate. Then this shift combined with the increased availability to move capital around the world was realized it created a demand which far exceeded supply, thus the price to acquire an asset was driven up. Prices went up due to the competition, cap rates dropped and underwriting principals became lax. How is the marketplace viewed today? If you are a seller prices have dropped too much; if you are a buyer, not enough. What we all need is for our balance sheets to go back into expansion mode and for buyers and borrowers to change their attitudes. Values will continue to drop as less capital is available. We must accept that the days of cheep debt and high leverage purchases are over. As we look towards 2009/2010, we will see more regulation and higher transparency industry-wide. What does this mean for retail in the Sacramento region? The regions growth in retail was tied closely to the residential marketplace and overall expanding economy. Homeowners were spending at an unheard of rate, betting on continued value appreciation of their personal residences. Now we face the wrath of this spending and the subsequent subprime meltdown. We believe that the residential subprime problem will be more extensive than once believed and even currently reported. We will continue to see a growth in foreclosure activity through 2009, thus we see opportunities for individual future home buyer, who will benefit from substantially lower prices in area markets hardest hit by these subprime mortgages. Opportunities now exists for a wave of cash-rich developers capitalizing on the opportunities created as banks take back acres of finished lots where the original developers no longer have the capital to service the notes. Most all of these new buyers are acquiring finished lots well below the costs of the original infrastructure and improvement costs. Through out the local region we continue to hear of additional businesses closing their doors. With every closed business there are a multitude of effects driving us toward a recession. We do not see much change for the region in We do expect the lending environment to become even tighter in 2009 forcing those property owners who decide to sell, possibly because of their current notes coming due, finding a market with lower pricing, higher capitalization rates and less investor interest due to market uncertainty. Those investors looking to sell, might decide that sooner is better, hoping to stay in front of the wave; realizing that it might be better to price the asset today at a price that looks favorable for today s marketplace, but could be viewed as aggressive in the near future and be unachievable. S U P E R I O R M A R K E T K N O W L E D G E Our advanced market knowledge gives you the edge in making profitable decisions. We lead the industry with proprietary research including current market data, demographic studies, housing studies, operational and competitive analysis, tenant mix comparisons and market potential reports. Colliers International Retail Advisors will provide you with the following services as your retail partner: Integrated products and services to make the most of your investments. In House Mapping and Aerial Services In-depth local market knowledge in every major market including traffic studies, customized demographic reports and analysis, and in-depth market research. Comprehensive capabilities ranging from lease proposals and negotiations, to coordinating architectural and site planning. Strawberry Creek Shopping Center NEC COSUMNES RIvER BLvd & BRUCEvILLE Rd SACRAMENTO, CA Connect Wireless Vietnamese Restaurant Modern Beauty Supply Wine & Spirits

7 BUS SACRAMENTO RETAIL OVERVIEW Third QUARTER 2008 SubMarket Bldgs EXISTING PROPERTIES ABSORPTION CONSTRUCTION Total Inventory GLA Total Vacant SF Total Vacancy Rate Vacancy Rate Prior Quarter Net Absorption Current Qtr SF Net Absorption YTD SF Arden/Howe/Watt 28 3,404, , % 5.8% (80,000) (111,676) Auburn/Loomis 15 1,440, , % 6.6% (20,000) 6,284 Completions Current Qtr SF Carmichael/Fair Oaks 19 1,941, , % 7.2% 48,194 43,915 91,194 Citrus Heights/Orangevale 24 3,034, , % 5.7% (65,002) (64,899) Davis 8 896,168 44, % 3.8% (10,020) (12,682) Downtown/Midtown 2 175,000 7, % 2.9% (2,500) (2,500) East Sacramento 3 216,093 18, % 7.4% (3,000) (17,872) El Dorado 9 1,818, , % 5.6% (12,000) 30,752 Elk Grove 31 4,518, , % 6.0% (63,985) (56,111) Folsom 19 3,212, , % 6.6% (52,000) (111,713) Highway 50 Corridor 21 2,800, , % 16.0% (12,100) (173,832) Lincoln 8 1,086, , % 13.0% (11,996) 20,007 Natomas/Northgate 18 2,824, , % 8.5% (23,000) (51,685) Placerville 7 879,418 28, % 2.4% (7,000) (7,000) Rio Linda/N Highlands 18 1,960, , % 6.7% (4,998) 75,377 Roseville/Rocklin 49 8,358, , % 8.9% 104, , ,356 South Sacramento 38 5,332, , % 7.5% (40,023) 227,324 West Sacramento 9 1,932,857 95, % 4.5% (6,200) 213,360 Woodland 12 1,436, , % 10.3% (3,000) 106,892 TOTAL ,269,348 4,156, % 7.6% (264,274) 383, ,550 SHOPPING CENTERS Neighborhood/Community ,843,337 1,902, % 7.8% (107,595) 46,721 91,194 Regional/Power 82 20,770,086 1,552, % 6.1% (292,025) 455,259 Specialty/Lifestyle 5 909, , % 22.5% 189, , ,356 Strip 54 3,755, , % 12.3% (54,010) (147,046) TOTAL ,269,348 4,156, % 6.7% (264,274) 593, ,550 Lincoln Airport Auburn/Lincoln Nicholas Rd. AUBURN Newcastle Hwy. Athens Ave. 99 NEWCASTLE Sunset Blvd. LOOMIS ROCKLIN Roseville/Rocklin 99 ROSEVILLE Baseline Rd. Douglas Blvd. Rio Linda/North Highlands El Dorado RIO NORTH Folsom Lake LINDA HIGHLANDS Citrus Heights/Orangevale 80 S Sacramento HEIGHTS Metro Airport Elkhorn Rd. ANGEVALE Greenback Lane North Natomas/Northgate FOLSOM EL DORADO 5 Watt Avenue Madison Ave. Carmichael/Fair Oaks HILLS Del Paso Rd. McClellan Air Force FAIR OAKS ding Way Base South Natomas CARMICHAEL Davis/Woodland Howe Avenue/Fulton Avenue Folsom 80 WEST SACRAMENTO CORDOVA 80 Mather Port Of Sacramento Air Force Base West Sacramento SACRAMENTO Campus Commons Douglas Rd. Midtown Highway 50 Corridor Downtown East Sacramento 99 Florin Rd. Capitol Ave. Sacramento River Pleasant Grove Blvd. Rio Lind Blvd. Northgate Blvd. Marysville Blvd. Del Paso Blvd. Elkhorn Blvd. 65th St. Howe Ave. Power Inn Rd. So. Watt Ave. Watt Ave. Fiddyment Road Fair Oaks Blvd. Bradshaw Rd. Foothills Blvd. Inustrial Ave. Mather Field Rd. Mather Blvd. Atlantic Jackson Rd. Sunrise Blvd. American Sierra College Blvd. Folsom Blvd. Hazel Ave. River Taylor Road White Rock Road Our survey tracks shopping centers of 50,000 square feet or more in gross leasable area, excluding malls and outlet centers. The information contained in this report was provided by sources deemed to be reliable, however, no guarantee is made as to the accuracy or reliability. As new, corrected or updated information is obtained, it is incorporated into both current and historical data, which may invalidate comparison to previously issued reports MARKET INDICATORS QUARTER 3 RD TH 2008 VACANCY h i NET ABSORPTION i i CONSTRUCTION i i RENTAL RATE i i Meadowview Rd. South Sacramento 5 Laguna Blvd. LAGUNA CREEK Elk Grove Blvd. Sheldon Rd. ELK GROVE Excelsior Rd. Grant Line Rd. Our Knowledge is your Property

8 Colliers international r e ta i l a dv i s o r s SACRAMENTO 1610 Arden Way, Suite 240 Sacramento, CA T: F: