1400 18th Ave

Assumptions

Property Assumptions

Market Leasing Assumptions

Analysis Start

August 1, 2013

Rentable Building Area

SF

%

Initial Lease-Up Period

12 months

Occupied

76,390

94.26% 5.74% 100.00%

Vacant

Office Renewal

4,651

Total

2013 Market Rental Rates

81,041

$23.00

Growth Rates

Rent Structure

Full Service

General Growth Rate Operating Expenses Real Estate Taxes

3.00% 3.00% 3.00%

Rent Adjustment

2.50% annually

Annual Market Rent Growth Rate

Lease Terms

36 months

Yr 1 Yr 2 Yr 3

3.00% 3.00%

2013 Tenant Improvements

3.00% New 3.00% Renewal

$15.00

Yr 4+

$5.00 $7.50

Weighted

Miscellaneous Revenue

Future Leasing Commissions New

6.00% 3.00% 3.75%

2013 Miscellaneous Revenues

Renewal Weighted

Parking

$100,000 $100,000

Total 2013 Misc. Revenues

Free Rent (Outside)

0 Month(s) Free

Operating & Capital Expense Assumptions

Renewal Probability

75%

Management Fee (% of EGR)

Downtime Period New

3.00%

6 Month(s) 2 months

Weighted

Capital Reserves

$0.35 psf

FOOTNOTES: Actual total square footage for the three buildings is 81,041. The square footage referenced in the leases for Building C results in a discrepancy of 1,479 RSF. It is assumed this RSF is corrected after the first year of tenancy for the tenants in Building C.

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