Cottleville Corners Offering Memorandum

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GENERAL PARAMETERS - ASSUMPTIONS FINANCIAL OVERVIEW Cottleville O'Fallon, MO 58,204 SF Cottleville O'Fallon, MO 58,204 SF

7/6/2016

General Parameters

Available Office Space Lease-up Assumptions Available Office Space Lease-up Assumptions

General Parameters

October 1, 2016

Start Date: Inflation:

Date Leased 12/01/16 11/01/16 02/01/17 04/01/17 Date

Square Square Feet Feet 2,459 1,234 1,220 1,616 2,459 1,234 1,220 1,616

Rate (psf) Rate (psf) $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $6.00 $6.00

Steps Term Free Steps Term Free

T.I.

L.C.

START DATE: INFLATION:

October 1, 2016

Start Date: Inflation:

T.I.

L.C.

$0.20 5.0% 3.0% 10 3.0%

Building Cottleville Cottleville Cottleville Cottleville

Suite

(psf)

(Mos)

Rent (Mos.)

(psf) $5.00 $5.00 $5.00 $5.00

(%)

$0.20 5.0% 3.0% 10 3.0%

Building Cottleville Cottleville Cottleville Cottleville

Suite

Leased 12/01/16 11/01/16 02/01/17 04/01/17

(psf)

(Mos)

Rent (Mos.)

(psf) $5.00 $5.00 $5.00 $5.00

(%)

Years of Analysis: Market Rent Growth: General Vacancy Loss:

102-103

3.0% 63 3.0% 63 3.0% 63 3.0% 63 3.0% 63 3.0% 63 3.0% 63 3.0% 63

3.0 3.0 3.0 3.0

6.00% 6.00% 6.00% 6.00%

Years of Analysis: Market Rent Growth: General Vacancy Loss:

102-103

3.0 3.0 3.0 3.0

6.00% 6.00% 6.00% 6.00%

3.0%

108 116 212

YEARS OF ANALYSIS: MARKET RENT GROWTH: GENERAL VACANCY LOSS:

Capital Reserve:

3.0% New 5.0% 25%

New 25%

Renewal

Weight d

Renewal

Weighted

1,000

2,000 2,000

3,000 3,000

4,000

5,000

6,000

7,000

1,000

4,000

5,000

6,000

7,000

Available Space Lease-up Available Space L ase-up

Renewal Probability:

75%

N/A

Renewal Probability:

75%

N/A

Downtime:

Year 2016 2017

6 months

0 months

1.50 months

Downtime:

Year 2016 2017

6 months

0 months

1.50 months

3,693 2,836 6,529

CAPITAL RESERVE:

$0.20 Option 1

Debt:

Option 2

Option 3

Debt:

Option 1

Option 2

Option 3

2016

3,693

2016

3,693

Totals

Loan to Value:

65.0%

Totals

Loan to Value: Interest Rate: Amortization:

65.0%

New Renewal Interest Rate: 4.00% 4.00%

Weighted

30 Years DO NOT INCLUDE IN OM

DO NOT INCLUDE IN OM

Amortization:

75% 30 Years 1.00%

RENEWAL PROBABILITY:

25% Loan Fee:

N/A

1.00%

Loan Fee:

DOWNTIME:

6 months 0 months Exit Cap Rate: 9.00%

1.50 months

Exit Cap Rate:

9.00%

2017

2,836 2,836

2017

Market Rates - 1st Floor Suites

New

Renewal

Weighted

MARKET RATES - 1ST FLOOR SUITES

New

Renewal

Weighted

New Rate Changes (Annual) Base MLA Base Rent (per S.F.)

Term (Mos) Rate Changes (Annual) Base MLA Base Rent (per S.F.)

$10.00

Renewal $10.00 3.0%

Weighted $0.03 $10.00 $0.03 60.75

3.0% 63.00

3.0% 60.00

3.0% 63.00

Totals

6,529

Totals

6,529

Term (Mos)

$10.00 60.00

60.75

BASE RENT (PER SF)

$10.00

$10.00 0.75

Free Rent (Mos)

3.00

0.00

Free Rent (Mos)

3.00

0.00

0.75

3.0% Leasing Commissions Tenant Improvements

$5.00 6.00%

$0.00 4.00%

$1.25

RATE CHANGES (ANNUAL)

3.0% $0.00

3.0% 4.5

Tenant Improvements Leasing Commis ions

$5.00 6.00%

$1.25 4.50%

4.00%

Net

Reimbursements

TERM (MOS)

63.00

60.00

60.75

Net

Reimbursements

Market Rates - Lower Level Suites

Market Rates - Outlots

FREE RENT (MOS)

3.00

0.00

0.75 Weighted

New Market Rates - Outlots MARKET RATES - OUTLOTS Renewal

New Market Rates - Lower Level Suites

Renewal

Weighted Weighted

Base MLA

New

Renewal

Weighted

New

Renewal

TENANT IMPROVEMENTS

$5.00 Base Rent (per S F.) Rate Changes (Annual)

$0.00 4.00% $6.00 3.0%

$1.25 6.00

$6.00 3.0% 63.00

$6.00 3.0% 60.00

Base Rent (per S.F.) Rate Changes (Annual) Term (Mos) Rate Changes (Annual) Free Rent (Mos) Base Rent (per S.F.) Term (Mos) Tenant Improvements Leasing Commissions Reimbursements Tenant Improvements Leasing Commissions Free Rent (Mos) Base MLA

$13.00

Base MLA

New

Renewal

Weighted

$0.03

3.0% 63.00

3.0% 60.00 $13.00 3.0% 0.00 60.00

$0.03 60.75 $13.00 $0.03 0.75 60.75 $1.25 4.50% 0.75 $1.25 4.50%

Term (Mos) Rate Changes (Annual) Base Rent (per S.F.)

$6.00 3.0% 63.00

$6.00 $0.03 60.75

$13.00

LEASING COMMISSIONS

6.00%

4.50% 60.75

BASE RENT (PER SF)

$13.00

3.0% 63.00

Free Rent (Mos)

3.00

0.00

0.75

3.00

Term (Mos)

Net 60.00 0.00 $0.00

REIMBURSEMENTS

RATE CHANGES (ANNUAL)

3.0%

Tenant Improvements Leasing Commissions

$5.00 6.00%

$0.00 4.00%

$1.25 4.50%

$5.00 6.00%

$0.00 4.00%

Free Rent (Mos)

3.00

0.75

3.00

0.00

Reimbursements MARKET RATES - LOWER LEVEL SUITES Tenant Improvements Leasing Commissions $5.00 6.00%

$1.25 4.50%

$5.00 6.00%

$0.00 4.00%

TERM (MOS)

63.00

60.00

60.75

Net

4.00%

Net

Reimbursements

FREE RENT (MOS)

3.00

0.00

0.75

Notes to Assumptions - Analysis assumes Health Care Solution Team has already expanded its space and extended its lease. - CKE Properties lease start and expiration dates are approximate based on its expected move in date. - The JB Hamilton space is separately owned. It therefore only pays NNN charges to Cottleville's ownership. Notes to Assumptions - Analysis assumes Health Care Solution Team has already expanded its space and extended its lease. - CKE Properties lease start and expiration dates are approximate based on its expected move in date. - The JB Hamilton space is separately owned. It therefore only pays NNN charges to Cottleville's ownership. N w Ren w l Weighted $6.00 $6.00 $6.00 3.0% 3.0% 3.0%

TENANT IMPROVEMENTS LEASING COMMISSIONS

$5.00

$0.00

$1.25

BASE RENT (PER SF)

6.00%

4.00%

4.50%

RATE CHANGES (ANNUAL)

REIMBURSEMENTS

Net

TERM (MOS)

63.00

60.00

60.75

Notes:

FREE RENT (MOS)

3.00

0.00

0.75

- Analysis assumes Health Care Solution Team has already expanded its space and extended its lease. - CKE Properties lease start and expiration dates are approximate based on its expected move in date. - The JB Hamilton space is separately owned. It therefore only pays NNN charges to Cottleville’s ownership.

TENANT IMPROVEMENTS

$5.00

$0.00

$1.25

LEASING COMMISSIONS

6.00%

4.00%

4.50%

REIMBURSEMENTS

Net

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