4145-4147 E. BASELINE ROADGILBERT, AZ 85234

V A L u A T I O N & D I S p O S I T I O N S T R A T E G y

ADAM TOLSONPrincipal602.954.3771atolson@leearizona.com

STEVE WHITEHEADAssociate602.912.3535swhitehead@leearizona.com

STEVE KOHLSPrincipal602.954.3777skohls@leearizona.com

4145-4147 E. BASELINE ROADGILBERT, AZ 85234

Prepared For:Mr. Michael LongleyAssistant General Counsel

January 13, 2012

| i4145-4147 E . BASELINE

Table of Contents

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SUBJECT

ExECuTIVE SuMMARy ...................................................................................................................................................1-3

Project Summary ....................................................................................... 1

Valuation ................................................................................................... 1

Project Overview ....................................................................................... 2

Market Overview ....................................................................................... 3

SALES STRATEGy ......................................................................................................................................................................4

SALE COMpARABLE TRANSACTIONS (OwNER/uSER) ......................................................5-6

Built Out Space ......................................................................................... 5

Shell Space ............................................................................................... 6

COMpETING SALE pROpERTIES (OwNER/uSER) ............................................................................7

ExhIBIT A: yEAR END 2011 MARkET REpORT .............................................................................8-9

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| 14145-4147 E . BASELINE

Executive Summary

pROJECT SuMMARy

Rentable Area: 4145 Bldg. - 9,384 SF | 4147 Bldg. - 5,511 SFTotal : 14,895 SF

Land Area: 4145 Bldg. - .808 Ac. | 4147 Bldg. - .733 AcTotal: 1.541 Ac.

year Built: 4145 Bldg. - 1997 | 4147 Bldg. - 1998

Construction: Stucco over wood frame

hVAC: Roof mounted package units - heat pump

Fire/Safety: Fully sprinklered

Electrical: Through low voltage power lines

Floors: One (1)

Number of Buildings: Two (2)

Space use: General office

Number of Tenants: 0

Current Occupancy: 00.00%

Leased SF: 0

Vacant SF: 4145 Bldg. - 9,384 SF | 4147 Bldg. - 5,511 SFTotal : 14,895 SF

Max Contiguous Available Space: 9,384 SF

Min. SF Immediately Available: 5,511 SF

parcel Number: 304-98-948 - 304-98-949

Zoning: No, neighborhood office - Town of Gilbert

Freeway Visibility: No

Monument Signage: Yes

Space Condition: Built Out

parking: 73 Total Spaces | 45 Covered Spaces

| 2

pROJECT OVERVIEw• Two (2) single-story, stucco over wood office buildings• Class “B” office buildings located in the Superstition Corridor• Ideal design for a single tenant / owner user investor

Location highlights• Close to executive housing, high-end retail, medical users & Banner Baywood Hospital• 1 mile to US 60• 1.2 miles from Dana Park• Good demographics• Numerous amenities within 1/2 mile (Pei Wei, Paradise Bakery, RA Sushi, etc.)

Strengths• Fee Simple (non-condo) office buildings• Well located Class “B” office asset• Appealing architecture & landscaping• Very good parking ratio of 4.9/1000• Good ingress/egress at a lighted intersection• Good size flexibility for an office user looking to purchase a building• Lack of small, stand-alone, fee-simple buildings available for sale to users• Flexibility for single-tenant or multi-tenant use• Buildings could be utilized by office or medical users

weaknesses• Differed maintenance (roof, parking lot, landscaping, cracked stucco/paint)• 100% vacancy in two separate buildings provides significant risk to partial owner user• High vacancy submarket• Cheap lease competition in immediate area pulling lease rates down• Not a core office corridor• Heavy specialized build-out that likely will require additional tenant improvements • Glut of office condos are available for sale nearby

4145-4147 E . BASELINE

Executive Summary

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MARkET OVERVIEw

Building Summary4145-4147 East Baseline are two Class “B” suburban office buildings located in Gilbert, Arizona. The office buildings are in excellent physical condition overall. Primarily constructed with wood and masonry, the curb-appeal is further enhanced with stone and masonry accents. Attractive grass and desert landscaping surround the buildings, giving it plenty of curb appeal and a very nice presence from Baseline.

The property is easy to access from the US 60 Freeway from Val Vista. Located at a light makes getting in and out of the property very easy. There is a full diamond interchange at the US 60 Freeway approximately one mile from the property, which provides good access to the East Valley’s labor base.

Each building offers a different size for an owner user who wants to occupy an entire building or use a portion while leasing out the rest. The location, quality construction, building sizes and unique advantage of owning fee-simple, free standing buildings offer the project very attractive attributes for ownership by either an office medical user.

phoenix Metropolitan Market Summary The Phoenix economic recovery continued to build momentum through the end of 2011, despite uneven employment gains in the preceding quarters. The Valley’s healthcare and retail trades fared the best last year due to robust job creation among medical practitioners and clothing and general merchandise retailers. These indus-tries accounted for the majority of the hiring in the metro, helping push total Phoenix job growth to approximately 2% in 2011, compared with 1.3% nationally. Blue-collar staffing levels also picked up last year, primarily as a result of rising solar manufac-turing hiring and resurgent construction payrolls. Despite milder growth in the fourth quarter, manual industries increased by 6,200 workers during 2011, following the loss of 1,700 positions in 2010. Office-using sectors weighed heaviest on metro area employment. In 2011, white-collar businesses reduced headcounts by an estimated 2,400 people, as professional and business services layoffs overshadowed gains in the financial activities and information industries.

Submarket SummaryThe property is located in the Mesa office submarket which consists of approximately 2.7 million total square feet. Fourth quarter positive absorption was 43,900 square feet, and year end numbers totalled 41,900 SF of positive absorption. The Mesa submarket has a vacancy of 28.3%, which is slightly higher than the Phoenix Metro vacancy of 26.6%. Average rental rates in the Mesa submarket have been battered at $17.99 PSF Full-Service, which is approximately $3.00 less per square foot than the market average of $20.93. The Mesa submarket trended with the overall metro market, ending the year on a positive note with the 4th quarter absorption leading the way. 2012 projections are more of the same, with slow and steady leasing activity that will track with the cautiously improving economy.

4145-4147 E . BASELINE

Executive Summary

| 44145-4147 E . BASELINE

Sales Strategy - Owner/User Sale

Rationale:

Since the rental market is saturated with vacant space at rates that continue to sink, leasing the buildings and selling them on a cap rate basis would likely not yield a price over $100/SF. In addition, the risks and uncertainty of downtime, tenant improvement cost and leasing commissions make leasing even more challenging. We recommend marketing the property to Owner/Users. There have been a number of Owner/User sales in the submarket and this type of buyer will pay more than a typical investor. The asset is well positioned for the user looking to occupy 5,000 to 10,000 square feet. The limited number of quality smaller, fee-simple buildings available to purchase in this submarket adds to the attractiveness of this building. The quality construction, curb appeal, location and size flexibility are positives to attract a wide range of users. This property will be marketed to both medical and office tenants.

Risks (Low):

The risks associated with an Owner/User sale are minimal. SBA financing offers an opportunity for many small business to successfully obtain financing. Furthermore, the cost uncertainty of securing a lease tenant are eliminated.

Conclusion:

The value of the property to an Owner/User would be significantly higher than the value to an investor based on a user’s lease-versus-own break even analysis. Although we would recommend marketing the property at $135/SF the likely value to an Owner/User would be between $95.00 - $115.00 per square foot. This price range is supported by “like building” sale comparables. The value will fluctuate based on the real hard costs a user will have to invest in the subject property for improvements required to suit their use of the space. For instance, an office user may be able to utilize 80% of the existing improvements, while a medical user may require demolition of 80% of the existing improvements and construction of new improvements suitable for a medical use.

Owner/user Valuation

Disposition Period: 120 - 180 Days

Asking Price: $2,010,825 $135.00

Gross Sales Price: $1,415,025- $95-$115 $1,712,925

Sales Commission $70,751- $4.75@ 5%: $85,646 $5.75

Tenant Improvement Costs: N/A N/A

Discount for Differed Maintenance: $100,000 $6.71

Leasing Commissions: N/A N/A

Net Sales Price(Before closing costs): $1,244,274- $183.54- $1,527,279 $102.54

Total Per SF

| 5

Section

4145-4147 E . BASELINE

Location Building Size (SF) Title Space

Condition Sale Date Salesprice

Buildingprice / SF Comments

Built Out Space

1 1365 S. Gilbert Rd. Mesa 12,782 Fee Simple Built out 7/5/2011 $907,500 $71.00 Owner/user purchased to renovate the

building for a day care/preschool.

2Sun Valley Office Park 7165 E. university Dr. Mesa

7,271 Condo Built out 1/20/2011 $675,000 $92.83 Medical office condo that was sold to another medical user.

3Val Vista uTAZ 3850 E. Baseline Rd. Mesa

5,000 Condo Built out 8/11/2011 $650,000 $130.00 REO Sale. Office condo with very nice finishes. Purchased by owner/user.

4The Baseline Center 4140 E. Baseline Rd. Mesa

5,407 Condo Built out 6/20/2011 $641,040 $118.56 Space was built out for a church but purchased by a medical user.

5Apache plaza 6915 E. Main Street Mesa

8,173 Fee Simple Built out 11/30/2011 $605,000 $74.02 Former credit union building that was sold to a user with a different use.

6Burk plaza 1549 N. Burk St. Gilbert

8,838 Fee Simple Built out 2/28/2011 $490,000 $55.44 REO Sale. Fee simple building purchased by a user for preschool / daycare.

7Sun Valley Office Park 7165 E. university Dr. Mesa, AZ

6,300 Condo Built out 3/31/2011 $346,500 $55.00 REO sale. Office condo built out as executive suites & purchase by owner/user.

8

Red Mountain Corporate Center 6112 E. Brown Mesa

7,424 Condo partially built out 3/24/2011 $468,000 $63.04 partially build out medical condo sold to

medical owner/user.

9Red Mountain Office Park 3514 N. power Rd. Mesa

5,467 Condo partially built out 10/7/2011 $380,000 $69.51 REO Sale. Owner/user bought building

partially leased and built out.

10

The Village at Superstition Springs 6634 E. Baseline Rd. Mesa

6,362 Condo Built out 11/9/2011 $334,005 $52.50 REO Sale. Office condo built out for medical & purchased by owner/user.

TOTALS Low: 5,000 $346,500 $55.00 high: 12,782 $908,500 $130.00 Average: 7,302 $549,705 $78.19

Sale Comparable Transactions (owner/user)

| 64145-4147 E . BASELINE

Sale Comparable Transactions (owner/user)

Location Building Size (SF) Title Space

Condition Sale Date Sale price price per Sq. Ft. Comments

Shell Space

1Spectrum Falls 2680 S. Val Vista Gilbert

5,443 Condo Shell 6/22/2011 $540,000 $99.21 REO Sale. Shell office condo purchased by medical user.

2Siena Springs 7233 E. Baseline Mesa

7,315 Condo Shell 10/31/2011 $453,530 $62.00 Shell condo purchased by owner/user.

TOTALS Low: 5,443 $453,530 $62.00 high: 7,315 $540,000 $99.21 Average: 6,379 $496,765 $80.61

| 7

project/BuildingBuilding

Size (SF)

Space Condition

Days on Market

year Built Condo? parking Asking price price/SF Comments

Built Out Space

1 77 w. university Dr. Mesa 10,626 Built out 9 1979 No 4.2:1000 $1,381,380 $130.00 Single tenant building built out for

CpAs.

2Vanderbilt plaza 2152 S. Vineyard Ave Mesa

8,019 Built out 637 2002 yes 5:1000 $1,804,275 $225.00 Fully built out medical condo. All equipment available.

3Arizona Federal Credit union 325 N. Stapley Dr. Mesa

10,150 Built out 1,785 1975 No 3.3:1000 $990,000 $97.54 Former Credit union building. Older two-story buildings.

4 3217 E. Queen Creek Rd. Gilbert 7,793 Built out 295 2007 yes 5.5:1000 $899,000 $115.36

REO condo, fully built out as a dental suite. All equipment included. In escrow.

5Entrada Executive plaza 1423 S. higley Rd. Mesa

4,900 Built out 638 2000 yes 3.4:1000 $813,400 $166.00 Fully built out office condo

6Fairways at Superstition Springs 2500 S. power Rd. Mesa

5,706 Built out 911 2004 yes 6:1000 $679,014 $119.00 Very nice office condo. Fully built out with high-end finishes

7 4011 E. presidio St. Mesa 5,695 Built out 125 2000 No $650,000 $114.14

Nice office building with high-end finishes. Sorrounded by industiral lots.

8Amberwood plaza 840 E. Mckellips Mesa

5,860 Built out 46 2003 No 4.6:1000 $586,000 $100.00 Very nice office condo, fully buit out with high-end finishes.

9Mckellips professional 535 E. Mckellips Mesa

7,008 Built out 2 2004 yes 4.5:1000 No price N/A Fully built out office condo.

TOTALS Low: 4,900 2 $586,000 $97.54 high: 10,626 1,785 $1,804,275 $225.00 Average: 7,306 494 $975,384 $133.38

4145-4147 E . BASELINE

Competing Sale Properties (owner/user)

| 8

METRO PHOENIX OFFICE MARKET REPORT

AZPhoenix

YEAR-END 2011

Over the past 30 years, there has been rapid expansion of Lee & Associates offices throughout the country, making it one of the largest and fastest growing commercial real estate organizations in the United States. Lee & Associates has offices throughout Arizona, California, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Missouri, Nevada, New Jersey, New York, South Carolina, Texas and Wisconsin.

4Q TRENDS AT A GLANCE

WWW.LEEARIZONA.COM | PAGE 1

From the Office of John Cerchiai & Fred Darche

Accelerating Office Absorption Setting the Stage forContinued Improvement in 2012Economy The Phoenix economic recovery continued to build momentum through the end of 2011, despite uneven employment gains in the preceding quarters. The Valley’s healthcare and retail trades fared the best last year due to robust job creation among medical practitioners and clothing and general merchandise retailers. These indus-tries accounted for the majority of the hiring in the metro, helping push total Phoenix job growth to approximately 2% in 2011, compared with 1.3% nationally. Blue-collar staffing levels also picked up last year, primarily as a result of rising solar manufac-turing hiring and resurgent construction payrolls. Despite milder growth in the fourth quarter, manual industries increased by 6,200 workers during 2011, following the loss of 1,700 positions in 2010. Office-using sectors weighed heaviest on metro area employment. In 2011, white-collar businesses reduced headcounts by an estimated 2,400 people, as professional and business services layoffs overshadowed gains in the financial activities and information industries. Commercial Real Estate Both office and industrial fundamentals improved measurably late last year. These gains marked the first signs of stabilization in the local office market, where sluggish office-using employment has dampened space demand. Still, some white-collar indus-tries continue to expand, fostering leasing activity and space absorption. As a result, office vacancy fell for two consecutive quarters for the first time since the end of the recession. Industrial vacancy, by comparison, has decreased in each of the past nine quarters, supported by rising blue-collar payrolls since late-2010. Although many in-dustrial operators continue to cut rents and offer healthy tenant incentives, market rents are approaching a bottom for a small number of assets in supply constrained submarkets. Outlook The economic turnaround will accelerate throughout 2012. Persistent blue-collar job growth will drive a relatively quicker pace of recovery in the industrial market. The expansion of manual-trade businesses will support the creation of nearly 5,000 new blue-collar jobs and positive net absorption of approximately 3 million square feet by midyear. Modest office-using employment growth is forecast for 2012; however, busi-nesses are expected to rehire at a cautious pace. On a year-over-year basis, office market fundamentals will improve, yet the lack of a full-fledged white-collar recovery will restrain the pace and sustain downside risks, as many companies will still return excess space to the for-lease market.

45 OFFICES NATIONWIDE

Absorption

413,300 SF

Vacancy

-50 basis points to 26.6%

Average Rent-1.6% to $20.93/SF

Supply Unchanged, 0 SF

Number of Sales+6%

Median Sales Price +25% to $95/SF

Office space absorption continues to ramp up, despite erratic white-collar hiring. Metrowide, net absorption of 413,300 square feet was recorded in the final quarter of 2011, the greatest rate in nearly five years. Accelerated absorption indicates that pent up office space de-mand persists, despite little support from office-using staffing levels. While white-collar industries added an estimated 2,300 jobs in the fourth quarter, layoffs occurred in two of the past four quarters, and employment levels will slide by 2,400 workers year over year, a 0.6% reduction. Nevertheless, net absorption of 380,900 square feet was recorded in 2011, and gains will persist this year as modest hiring and company expansion will outpace shuttering and down-sizing firms.

ABSORPTION & EMPLOYMENT

Phoenix office vacancy fell during the final half of 2011, the first con-secutive quarterly improvement since early 2006. In the most recent quarter, in fact, vacancy rates declined across all office property types. Class A vacancy rates declined 30 basis points to 27% in the fourth quarter due to upgrading tenants and expanding financial ser-vices and technology firms. Leasing of back-office and administrative space, meanwhile, supported a vacancy decline of 60 basis points to 26.8% within middle-tier properties and the Class C rate reduction of 170 basis points to 19.5%. Overall, marketwide vacancy receded 50 basis points during the final three months of 2011 to 26.6%. Steadi-er hiring will maintain downward pressure on vacancy this year, with the average rate anticipated to dip below 26% by midyear.

Office rents continue to fall. During the milder recession of the early 2000s, asking rent declines did not stop until vacancy reached the 18% range and two years of robust office-using employment growth were recorded. While each recovery is unique, the Phoenix office mar-ket is just beginning to stabilize and white-collar businesses have yet to add workers for consecutive quarters. Market rents fell 3.9% to $20.93 per square foot in 2011, compared to an 8.7% reduction in the prior year. Submarket asking rent decreases varied considerably, and turnover of space caused erroneous quarter-over-quarter upticks in rents. Nevertheless, rents dropped on an annual basis in every submarket, and owners in peripheral areas such as Arrowhead/Sur-prise, North Phoenix and West 101 will continue to slash rents well into 2012.

Office investment demand remains elevated, though the wide vari-ance in asset quality and the diverse buyer pool obscure market-level trends. To be certain, larger REITs currently play a significant role at the top end of the market. Best-in-class office assets trade in the high-$200 per square foot to low-$300 per square foot range, with cap rates gravitating toward 7.25%. More aggressive Class A buyers typically acquire assets for under $200 per square foot but at initial yields nearing 8%. Despite steady institutional activity, distressed sales still weigh on values. The marketwide median priced slid 13% to $93 per square foot in 2011, compared with a 19% plunge in the prior year. Deal flow increased 30% annually, although quarter-over-quarter trends were choppy due to distressed-asset sales.

YEAR-ENDMETRO PHOENIXOFFICE MARKET REPORT

2011

VACANCY

RENTS

SALES & INVESTMENTS

PAGE 2 | WWW.LEEARIZONA.COM

4145-4147 E . BASELINE

Exhibit a: YEAR END 2011 Market Report

| 9

SUBMARKET TRENDS

YEAR-ENDMETRO PHOENIXOFFICE MARKET REPORT

2011

WWW.LEEARIZONA.COM | PAGE 3

PROPERTY CLASS TRENDS

Net Absorption Vacancy Asking Rents

Submarket Inventory 4Q11 YTD 4Q11 3Q11 4Q10 Rate Q-O-Q Chg. Y-O-Y Chg.

Arrowhead/Surprise 1,413,900 -19,500 -27,000 30.3% 28.9% 28.4% $22.21 -0.9% -6.4%

Camelback Corridor 7,553,700 69,900 -137,300 32.4% 33.3% 30.6% $24.49 -0.9% -0.4%

Deer Valley 2,050,700 -52,200 -142,900 38.2% 35.7% 31.3% $19.76 -2.9% -3.8%

Downtown 7,665,000 14,600 472,400 16.7% 16.9% 22.8% $26.06 -1.0% -4.2%

East Phoenix 3,717,200 -78,400 -143,000 25.9% 23.7% 22.0% $17.14 0.2% -1.3%

Gateway 3,165,400 -11,500 -34,100 31.3% 30.9% 30.2% $20.60 -0.4% -2.3%

I-17 5,880,800 -14,700 119,100 27.6% 27.3% 29.6% $18.03 0.1% -2.1%

Mesa 2,692,300 43,900 41,900 28.3% 30.0% 29.9% $17.99 1.6% -1.9%

Midtown 10,849,600 -79,900 -347,400 26.0% 25.3% 22.8% $19.63 -1.6% -1.6%

North Phoenix 2,469,700 4,200 -83,700 34.0% 34.2% 30.6% $20.14 -6.4% -9.4%

North Scottsdale 8,559,200 142,900 334,700 29.2% 30.8% 33.1% $22.36 -0.3% -0.8%

San Tan Corridor 2,755,200 99,700 228,100 26.1% 29.7% 34.4% $23.16 -2.4% -4.6%

Scottsdale 5,746,200 69,200 225,300 25.2% 26.5% 29.2% $21.83 -1.9% -5.5%

South Scottsdale 3,191,500 92,100 114,600 22.7% 25.6% 26.3% $21.21 -1.2% 2.3%

Tempe/I-10 11,365,400 146,300 -115,300 22.5% 23.8% 21.5% $19.91 -0.4% -4.0%

West 101 2,833,100 -13,200 -124,800 31.9% 31.4% 27.5% $20.02 -2.8% -11.8%

Metro Total 81,908,800 413,300 380,900 26.6% 27.1% 27.1% $20.93 -1.6% -3.9%

Net Absorption Vacancy Asking Rents

Property Class Inventory 4Q11 YTD 4Q11 3Q11 4Q10 Rate Q-O-Q Chg. Y-O-Y Chg.

Class A 34,384,500 113,900 611,600 27.0% 27.3% 28.8% $23.79 -2.0% -3.8%

Class B 44,147,300 242,300 -278,400 26.8% 27.4% 26.2% $19.07 -0.9% -3.1%

Class C 3,377,000 57,100 47,700 19.5% 21.2% 20.9% $14.47 0.4% -8.0%

Metro Total 81,908,800 413,300 380,900 26.6% 27.1% 27.1% $20.93 -1.6% -3.9%

About Lee & AssociatesLee & Associates, founded in 1979, is one of the largest regional commercial real estate services companies in the United States.

Our seasoned shareholders and professionals offer comprehensive brokerage and advisory services. We develop customized solutions for all of your real estate needs through our market-to-market knowledge and versatility across all property types. Our unique business model of broker-ownership and extensive experience has helped us become one of the largest and most highly regarded commercial real estate providers in Arizona and the nation.

Fair Market Value Analysis- Valuation of Land- Valuation of Buildings and Other Improvements

Financial Analysis of Alternatives

Sale-Leaseback

Site Search- Selection- Due Diligence- Acquisition

Build-to-Suit

Disposition of Existing Buildings

- Comparing Alternative Proposals- Purchase vs. Lease Analysis- Existing Building Search- Locally & Nationally

- Institutional Investors- Private Investors

- Site Selection Criteria- Development- Analysis

- For Lease- For Sale- Facility Specification- Comprehensive Bidding & Design Build Construction- Expansion Planning

- Locally & Nationally - REO & Distressed-Asset Valuation & Sales

Report prepared by: David Delich, Senior AnalystMegan Murray, Graphic Designer

For more information regarding commercial real estate trends, investments, leasing or sales, please contact Research Director, Chris McChesney, at research@leearizona.com.

For more information regarding commercial real estate leasing or sales, please contact Ryan Corey at (602) 956-7777 or rcorey@leearizona.com.

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1 Arrowhead/Surprise2 Camelback Corridor3 Deer Valley4 Downtown5 East Phoenix6 Gateway7 I-178 Mesa9 Midtown10 North Phoenix11 North Scottsdale12 San Tan Corridor13 Scottsdale14 South Scottsdale15 Tempe/I-1016 West 101

TOP LEASE TRANSACTIONS*

TOP SALES TRANSACTIONS*

YEAR ENDMETRO PHOENIXOFFICE MARKET REPORT

2011

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The information and details contained herein have been obtained from third-party sources believed to be reliable; however, Lee & Associates Arizona has not independently verified its accuracy. Lee & Associates Arizona makes no representations, guarantees, or express or implied warranties of any kind regarding the accuracy or completeness of the information and details provided herein, including but not limited to the implied warranty of suitability and fitness for a particular purpose. Interested parties should perform their own due diligence regarding the accuracy of the information. The information provided herein, including any sale or lease terms, is being provided subject to errors, omissions, changes of price or conditions, prior sale or lease, and withdrawal without notice. Further, data sources are continually revised and re-benchmarked, causing both historical and forecast information, data and analysis to change as new information is added.

Third-party data sources: CoStar Group, Inc., Institute for Supply Management, Moody’s Economy.com, Nielsen/Claritas, Real Capital Analytics, U.S. Bureau of Economic Analysis, U.S. Bureau of Labor Statistics, U.S. Census Bureau, U.S. Department of Commerce.

© Copyright 2011 Lee & Associates Arizona. All rights reserved.

Submarket Property Name Address Tenant Name Square Feet

Downtown One North Central 1 N. Central Ave. Phoenix School of Law 205,130

Tempe/I-10 River Corporate Center 8075 S. River Pkwy. US Foods 133,225

Camelback Corridor Biltmore Financial Center III 2394 E. Camelback Rd. Fennemore Craig 121,000

North Scottsdale Princess & Perimeter I 17600 N. Perimeter Dr. Fender Musical Instruments 119,681

West 101 Glendale Corporate Center 5323 N. 99th Ave. Bechtel Corp. 72,494

San Tan Corridor Chandler Office Center 55 N. Arizona Pl. Ports America 64,827

Downtown Freeport-McMoRan Tower 333 N. Central Ave. Freeport-McMoRan Copper 60,947

North Scottsdale Perimeter Gateway V 8665 E. Hartford Dr. AT Security Service, Inc. 58,100

North Scottsdale Scottsdale Quarter 15147 N. Scottsdale Rd. Starwood Hotels & Resorts 56,189

Tempe/I-10 Foothills Corporate Centre 14415 S. 50th St. Cyracom International, Inc. 55,089

* Selected transactions

Submarket Property Name/Address Sales Price Square Feet Price Per SF Sale/Property Notes

Tempe/I-10 University of Phoenix** $170,000,000 599,664 $283 7% cap rate; sale-leaseback

Tempe/I-10 Fountainhead Office Plaza** $137,000,000 439,070 $312 7.5% cap rate; sale-leaseback

Downtown Arizona Center** $136,500,000 1,061,846 $129 Sold by General Growth Properties

Deer Valley PetSmart Headquarters** $102,500,000 365,672 $280 7.2% cap rate; sale-leaseback

Scottsdale Pima Center** $60,000,000 546,487 $110 7.5% cap rate

Tempe/I-10 Hayden Ferry Lakeside I $39,400,000 203,113 $194 8.2% cap rate

North Scottsdale Kierland Commons** $34,200,000 363,001 $94 Partial interest sale

Deer Valley Union Hills Office Plaza $27,075,000 142,773 $190 7.9% cap rate

San Tan Corridor Gilbert Crossing** $26,200,000 328,003 $80 REO sale

South Scottsdale 4141 N. Scottsdale Rd. $21,700,000 153,428 $141 Three-story, Class B asset

* Selected transactions ** Multi-property or mixed-use transaction

4145-4147 E . BASELINE

Exhibit a: YEAR END 2011 Market Report