Wedgwood proposal 11 26 14

Leasing & Management ProposalOnward InvestorsNovember 2014

Wedgewood Commerce Center I

PRESENTED BY:

KEviN O’NEill, SiOR Senior Vice President

STEvE ShEPhERD Senior Associate

COLLIERS INTERNATIONALOnward Investors | PORTFOLIO PROPOSAL COLLIERS INTERNATIONAL

Table of Contents

General OrGanizatiOn About Colliers 3-5 Current Portfolio 6

team and experience Team Overview 9 Team Coordination and Success 10 Resumes 11-14 Additional In-House Services 15-17 leasinG and marketinG Overview 19 Leasing Marketing Plan 20-21 Lease/Sale Comps 22-28 SWOT Analysis 29 Projected Rates 30

capital imprOvements Near and mid-term improvement recommendations 32 cOmpensatiOn Commercial Leasing 34 Property & Construction Management 35

Onward InvestorsWedgwood Commerce Center I Proposal

COLLIERS INTERNATIONAL | MINNEAPOLIS - ST. PAUL

> General Organization

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COLLIERS INTERNATIONAL 3Onward investors | PORTFOLIO PROPOSAL

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Colliers InternationalMinneapolis-St. Paul OverviewOriginally founded in the Minneapolis area as Welsh Companies in 1977, the organization recently partnered with Colliers International and operates from three offices in the Twin Cities area, covering the state of Minnesota and western Wisconsin. We are a full-service, woman-owned firm offering expertise in every property type, with professionals specializing in sales and leasing, corporate services, landlord representation, tenant representation, investment services, appraisal and valuation, asset resolution, and real estate and facilities management.

An Accredited Management Organization® (AMO®), the Minneapolis-St. Paul office of Colliers International oversees a portfolio of 25+ million square feet of office, industrial, retail, and multi-family properties for a variety of institutional and entrepreneurial commercial real estate owners throughout the Midwest, serving the needs of more than 2,000 tenants daily.

2013 MINNESOTA HIgHLIgHTS

> Completed 1,191 transactions totaling over $866 million in consideration

> Ranked #1 in total market share, representing over 19.3 million square feet in the Twin Cities, according to CoStar

> Winner of the MNCAR Industrial Transaction of the Year

> Winner of prestigious TOBY Award from the Building Owners and Managers Association (BOMA)

> Consistently ranked among top two brokerage and real estate management firms in the Twin Cities by the Minneapolis/St. Paul Business Journal


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Today, unlike many commercial real estate firms, FirstService Corp. (NASDAQ: FSRV) is in a strong financial position to continue supporting client services and operations. FirstService Real Estate Advisors (FSREA), the commercial real estate arm of FirstService Corp., which includes CMN, is now the fastest-growing and fourth-largest commercial real estate services firm in the world, with 336 offices in 37 countries.

We believe in the uniting power of leadership to create a strong system of accountability for our clients. Doug Frye is not only President and CEO of CMN and of FirstService Real Estate Advisors globally, he is also Chairman of the Board of Directors for Colliers International globally, and Chairman of the Colliers USA Board of Directors. As such, Frye represents all owners globally, ensuring strong accountability within our entire platform.

FirstService Real Estate Advisors’ integrated service lines provide our clients with a complete team: commercial real estate brokerage, investment sales, corporate services, property management, valuation and appraisal, capital markets financing, project management and hospitality advisory and consulting. Together, these services generate more than $1 billion in annual revenue and employ more than 6,000 professionals.

FirstService also owns the largest residential property management business in North America, FirstService Residential Management, which oversees more than 3,700 residential communities from 45 North American offices.

Colliers International is the fastest growing real estate firm in the world. We are a top tier firm and leader in global real estate services. Colliers is managed by an entrepreneurial group of strong local owners. The largest owner, responsible for the majority of Colliers’ total revenue and for 88 percent of the network’s growth in the past four years, is Colliers Macaulay Nicolls (CMN).

In 2004, CMN created a strategic partnership with FirstService Corporation, a $1.7 billion, publicly traded investment firm. The firm purchased an 83 percent stake in CMN; the remaining equity is held by our senior leadership.

We accelerate your success by making our knowledge your property.

485 offices in63 countries • $2.1 billion USD in annual revenue

• 15,800 professionals and staff

• 1.46 billion* square feet under management

• $75 billion USD in total transaction value

* Square footage includes office, industrial and retail property under management. Residential property is excluded from this total. All statistics are for 2013.

485 offices in63 countries > $2.1 billion USD in annual

revenue> 15,800 professionals and staff> 1.46 billion* square feet under

management> $75 billion USD in total

transaction value

*Square footage includes office, industrial and retail property under management. Residential property is excluded from this total. All statistics are for 2013.

Founding member of the World Green Building Council

Member of World Economic Forum

Named Top 100 service provider more times than any other

The second-most-recognized commercial real-estate brand (2014 LIPSEY SURVEY)

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OUr expertise Workout strategies – Our specialists in multiple disciplines work together to recommend and execute cost-effective workout strategies on behalf of the ownership.

property management – Currently managing in excess of 1.46 billion square feet of office, industrial, retail and residential properties throughout the U.S., including 200,000 multi-family units.

leasing – More than 1,500 leasing agents specializing in office, industrial and retail properties combine extensive tenant relationships nationwide with local marketing efforts to attract new tenants to properties.

valuations & appraisal – Expert appraisers and knowledgeable brokers provide detailed appraisal studies or concise broker opinions of value (BOV).

dispositions – More than 200 investment sales profession-als market office, industrial, retail, hotel, land for development, and multi-family properties through the Colliers Investment Services platform.

receivership – More than 30 experienced individuals within Colliers are prepared to assume receivership responsibilities as required.

capital markets – More than 62 professionals throughout the U.S. arrange debt, equity and joint venture financing, primarily with correspondent financial institutions.

project & construction management – Oversight for remodel, tenant-finish and ground-up projects ranging from $1 million to more than $100 million.

OFFice HOtel mUlti-FamilY land indUstrialretail

Colliers International Locations

Complete Coverage with over 96 Offices in the USABentonville, ARLittle Rock, ARPhoenix, AZScottsdale, AZBakersfield, CAFresno, CARoseville, CAStockton, CACarlsbad, CAGilroy, CASacramento, CATemecula, CA Commerce, L.A.Oakland, CASan Bernandino-Inland Empire/Riverside,CATorrance, L.A. DowntownL.A.Orange Cty,CA

San Diego, CAValencia, L.A. Encino, L.A.Pleasanton, CASan Francisco, CAWalnut Creek, CA Fairfield, CARedwood County, CASan Jose, CADenver, COHartford, CTNew Haven, CTStamford, CTWashingtonD.C.Delaware, D.CWilmington, D.CClearwater, FLFt Lauderdale, FLMiami, FLPalm Beach, FL

Fort Myers, FLJacksonville, FLOrlando, FLTampa Bay, FLAtlanta, GASavannah, GAHonolulu, HIBoise, IDNampa, IDChicago, ILRosemont, ILIndianapolis, INLawrence, KSBoston, MABaltimore, MDColumbia, MDAnn Arbor, MIGrand Rapids, MIKalamazoo, MIDetroit, MI

Holland, MIMinnetonka, MNMinneapolis, MNShoreview, MNKansas City, MOSt. Louis, MOLincoln, NEOmaha, NEMount Laurel, NJParsippany, NJLong Island, NYNew York, NYReno, NVLas Vegas, NVCharlotte, NCDurham, NCRaleigh, NCOklahoma, OKCincinnati, OHCleveland, OH

Columbus, OHPortland, ORAllentown, PAConshohocken, PAHarrisburg, PAPhiladelphia, PA Pittsburgh, PACharleston, SCColumbia, SCGreenville, SCMemphis, TNNashville, TNDallas, TXHouston, TXSugar Land, TXRichmond, VABellevue, WASeattle, WA


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Colliers InternationalNorthwest Submarket Properties

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BrOOklYn park: 1. 9110 83rd Ave N 2. 7125 Northland Terr N

cOlUmBia HeiGHts: 3. 3836 Stinson Blvd

cOOn rapids: 4. 2437 Coon Rapids Blvd 5. 299 Coon Rapids Blvd 6. 3495 Northdale Blvd NW

FridleY: 7. 500 73rd Ave NE 8. 452 Northco Dr 9. 5301 East River Rd NE

GOlden valleY:10. 7575 golden Valley Rd11. 4150 Olson Mem Hwy

HOpkins:12. 810 1st St S

maple GrOve:13. 13700 Reimer Dr14. 7830 Main St15. 12000 Elm Creek Blvd16. 10200 73rd Ave N17. 7767 Elm Creek Blvd18. 11320 86th Ave N19. 7001 E Fish Lake Rd

medina:20. 4700 County Road 19

minnetOnka:21. 10159 Wayzata Blvd22. 4350 Baker Road23. 111 Cheshire Lane24. 121 Cheshire Lane

25. 18202 Minnetonka Blvd26. 11812 Wayzata Blvd27. 10653 Wayzata Blvd28. 10590 Wayzata Blvd

neW HOpe:29. 9220 Bass Lake Road30. 9401 36th Ave N31. 7500 42nd Ave N

plYmOUtH:32. 4100 Berkshire Ln N33. 10405 6th Ave N34. 13705 26th Ave N35. 9850 51st Ave N36. 2600 Fernbrook Ln N37. 14000 25th Ave N38. 15700 37th Ave N39. 9655 Schmidt Lake Rd40. 14405 21st Ave41. 14505 21st Ave N42. 15655 37th Ave N43. 3655 Plymouth Blvd44. 2355 Polaris Ave N45. 15350 25th Ave N

rOGers:46. 13980 Northdale Blvd

st. lOUis park:47. 5051 Highway 748. 4915 W 35th St49. 5100 gamble Dr50. 5401 Parkdale Dr51. 1660 S Hwy 100

WaYzata:52. 305 Minnetonka Ave53. 328 Barry Ave S


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Colliers International Minneapolis-St. Paul Potential Competing Properties

13700 riemer drive maple Grove, mn

20,000-square-foot, 2-story office building located in Maple Grove, Minnesota. This property is over 90% occupied, and will allow or leasing team to be aware of all Maple grove prospective tenants. The proposed leasing team has leased this building for three different owners and kept it full during the recent down turn.

55 West plymouth, mn

While this property could be seen as a competitor to Wedgwood Commerce Center I, at Colliers, we prefer to view it as an opportunity to satisfy more tenants by providing more options within the same area. We would be able to market both properties to a similar set of users, maximizing our efficiency of filling vacancies in both locations. Additionally, the buildings are located in different cities and are over 8 miles apart.



> Team & Experience

Onward Investors | PORTFOLIO PROPOSAL COLLIERS INTERNATIONAL 9

team & experience

Colliers has assembled a team of highly skilled industrial and property management professionals to present to Onward Investors. Each member of the team has a distinct role to play. Collectively, their superior market knowledge, work ethic, creative and critical thinking, as well as the team’s ability to build long lasting relationships, is what allows them to achieve the vision and goals set forth by owners.

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team & experience

Team Overview

Bill WardwellExecutive Vice President

Jean KaneCEO

ExECUTIVE LEADERSHIP

Mark PartenExecutive Vice President

Rich ForslundProperty Management

Mark KolsrudSenior Vice President

PROPERTY MANAgEMENT INVESTMENT SALES

LEASINg

Kevin O’NeillSenior Vice President

MARKETINg & RESEARCH SUPPORT

Lisa BergersonDirector of Marketing & Communications

Maura CarlandDirector of Research

Angela RosenbergLicensed Brokerage Services Assistant

Steve ShepherdSenior Associate

Kay Wallinaccount

Jordan WeigeltFinancial analyst


team & experience

Team Coordination and Successexperienced teamThe Project Team is composed of well-known, highly experienced and respected individuals in the real estate business. Most importantly, each individual possesses different strengths, skill sets and a motivation to succeed that are unmatched by any competitor. The Project Team is comprised of seasoned veterans that specialize every day in filling up vacant space for property owners. Not only does this team work effectively and efficiently, they have fun doing their job. They enjoy the challenge of pulling together the right solution for each unique situation—delivering the best experience and outcome to the client.

UnderstandinG tHe task at HandNothing is more important than having an in-depth understanding of the real estate, the owners goals and objectives and where the prospects to fill the space will come from. We have as comprehensive a marketing package as possible by gathering the details up front. We will leverage our knowledge of the market, prospects, and building to achieve the highest possible rental rate for our client. Our ability to qualify prospects, show the property in the best possible detail and provide our owner with the most accurate information to conclude a transaction is what sets us apart from our competition.

deptH OF resOUrcesthe power of local Flexibility. Colliers now has more than 15,800 professionals operating out of 485 offices worldwide in 63 countries.

In its continuing plan to significantly expand its U.S. footprint, Colliers recently partnered with Welsh in Minneapolis who has a long-standing history of providing commercial real estate services in the Twin Cities area dating back to 1977. The partnership allows the Colliers Minneapolis office with 80 brokerage advisors and 50 property management professionals to seamlessly tie into the vast array of services which Colliers provides on a worldwide basis. The Minneapolis office is ranked #1 in total market share of square feet represented in the Twin Cities according to CoStar, and Colliers is consistently ranked among the top two brokerage and property management firms in the state by the Minneapolis-St. Paul Business Journal.

One important distinction between Colliers Minneapolis and our competitors is that the Minneapolis office remains locally owned and operated. Principals retain equity and bring vested alignment of interests thereby creating the best culture in the industry. Our competitors do not share this advantage. Colliers Minneapolis’ goal is to continue our 36 year tradition of consistently creating value for our clients through our resource-rich organization comprised of intelligent, creative, entrepreneurial, passionate and opportunistic people.

cOnclUsiOnWe sincerely appreciate the opportunity to present our qualifications to Onward Investors for this important assignment. On the pages that follow, please find more detailed information related to our team strengths, strategic approach, negotiating style, and fee schedule specific to this project. You will have made an excellent decision in choosing Colliers for this assignment!

as YOUr BUsiness partner, We can:> Identify competitive advantages and opportunities for improvement> Create a specific go-to-market strategy tailored to your business needs> Proactively identify tenants whose space no longer suits their needs> Anticipate service needs by routinely soliciting tenant feedback> Advise owners on cost-effective maintenance strategies> Apply best-in-class marketing tools to segmented target groups, generating strong interest and feedback

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team & experience


team & experience

KEVIN O’NEILL, SIORSenior Vice President | Office Brokerage | Minneapolis - St. Paul

area OF expertiseWith more than 20 years of experience at Colliers International (formerly NAI Welsh), Kevin O’Neill consistently ranks among our top salespeople. Kevin has been named a member of the Colliers International Everest Club, which recognizes the top ten percent of all Colliers brokers in the United States. Kevin specializes in owner and tenant representation in office properties located in the western and southern suburban areas of the Twin Cities metro area. Kevin has completed more than 1,800 lease and sale transactions totaling in excess of over 7 million SF of space with total consideration of more than $1.2 billion.

Kevin’s thorough understanding of the office market combined with his straightforward and honest approach has fostered many long term relationships with local and national owners of office buildings. On average, Kevin’s team is responsible for a portfolio of over 1.2 million SF of office space and is actively involved in the sale of owner occupied and investor office buildings.

prOFessiOnal accOmplisHmentsKevin’s team has represented a variety of institutional and entrepreneurial owners including: gE, Cornerstone Real Estate Advisers, Ryan Companies, Onward Investors and Mortenson Construction. Kevin recently completed a ten year lease with a Fortune 100 Company for approximately 210,000 square feet to increase the occupancy of a Class A Building in Eden Prairie to 98%. Southdale Office Centre, a 450,000 SF, four-building project on France Ave. in Edina, has consistently out performed the market during the 14 years Kevin has leased the project.

Kevin’s team also represents corporate real estate users in evaluating their market alternatives and developing and implementing long-term real estate plans. For example, Kevin recently represented a publicly traded software company in relocating to a 130,000 SF space in Minnetonka and assisted a Healthcare company in the lease of 50,000 square feet in downtown Minneapolis. Kevin is skilled and experienced in connecting corporations with the appropriate property.

Kevin lives in Minneapolis with his wife Catherine and enjoys coaching his three children in a variety of sports. Kevin is an active volunteer serving on his parish council and has been a past president and board member for the Minnesota Commercial Association of Realtors.

COLLIERS INTERNATIONAL4350 Baker RoadSuite 400Minnetonka, MN 55343

Phone 952.897.7724Fax [email protected]

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team & experience

edUcatiOnBA, University of Notre Dame

MBA, Finance, University of Minnesota, Carlson School of Management

Society of Industrial and Office Realtors designee (SIOR)

memBersHipsBoard of Directors and Past President, Minnesota Commercial Association of Realtors (MNCAR)

National Association of Industrial and Office Properties (NAIOP)


team & experience

STEVE SHEPHERDSenior Associate | Office Brokerage | Minneapolis - St. Paul

area OF expertiseA Senior Associate in Colliers International’s Office Brokerage division, Steve Shepherdrepresents tenants in the sale and leasing of properties throughout the Twin Cities. As atenant and buyer representative, Steve follows a consultative approach to site selection and has successfully completed hundreds of transactions on his client’s behalf.

Steve began his real estate career in Chicago providing tenant representation services toorganizations in the Central Business District. In addition to his real estate experience,Steve spent four years with a management consulting firm specializing in sales andmarketing strategies for Fortune 500 firms. He joined Colliers International (formerly NAI Welsh) in 2005.

A leader in the industry, Steve was honored with the Minnesota Commercial Associationof Realtors “Rising Star” award in 2009, which is awarded to a real estate professional who demonstrates a high level of professional conduct, significant production levels, an outstanding contribution to the profession, and participation in other business, civic, and community activity.

prOFessiOnal accOmplisHmentsIn a recent transaction, Steve represented an accounting firm that consolidated severalacquired firms into a 15,000-square-foot Class A suite at I-494 and France Ave. Thenew space was designed and built-to-suit, creating an efficient work environment at reduced rates for his client.

Another recent success story developed as Steve represented a multi-state investmentsyndicate in their purchase of a 63,000 SF building. After extensive searching andnegotiation, they secured the property providing investors with an above market return.

Steve has assisted Farmers Insurance in the procurement and disposition of multipledistrict offices around the Twin Cities market. Throughout his time working with Farmers,Stave has delivered consistently successful outcomes by aligning his approach to management’s objectives through clear, consistent communication and a thoughtful strategic real estate process.




team & experience

edUcatiOnMBA, Carlson School of Management, University of Minnesota

BBA, University of WisconsinReal Estate License, State of Minnesota

memBersHipsExecutive Board Member, Minnesota Commercial Association of Realtors (MNCAR)

National Association of Industrial and Office Properties (NAIOP)

Board Member, St. Louis Park Rotary

aWardsRising Star of the Year, MN Commercial Association of Realtors (MNCAR), 2009

CoStar Power Broker, 2008

Welsh Rookie of the Year, 2006


team & experience

RICH FORSLUNDSenior Real Estate Manager | Minneapolis - St. Paul

area OF expertiseAs a Senior Real Estate Manager, Rich Forslund specializes in the management ofsuburban office and industrial properties in the Twin Cities. Rich manages fourteen officeand industrial properties throughout the metro area and is responsible for upholdingCollier’s high standards of customer satisfaction and service. A consummate professional, Rich is committed to providing quality service and takes pride in his effortsto anticipate the needs of tenants and owners and to foster a sense of communityamong tenants. Rich is a conscientious and detail-oriented professional who provides hisclients with thorough and accurate reports, recommendations and property updates.

Rich began his real estate management career in 1984 with Oxford/BCE Development in Brookfield, working as an assistant property manager in the Minneapolis Baker Center. In 1986 he went to St. Paul where he became the property and general manager of St. Paul Town Square and the Minnesota World Trade Center. Ten years later, Rich switched focus to market third party property management services for Brookfield. Then in 2001, he joined grubb and Ellis as the portfolio manager for Minneapolis properties including Interchange Office Park in St. Louis Park. Most recently, Rich managed the Lumber Exchange Building and Westwood Lake Office Park for Cushman and Wakefield.



edUcatiOnBachelor of Arts, Accounting, University of Minnesota

Masters of Business Administration, University of Minnesota

Real Property Administrator (RPA) Designation, BOMA

memBersHipsBuilding Owners and Managers Association (BOMA), Minneapolis and St. Paul Chapters

National Association of Industrial and Office Properties (NAIOP), Minnesota Chapter


team & experience


team & experience

MARK KOLSRUDSenior Vice President | Investment Sales | Minneapolis - St. Paul

area OF expertiseMark W. Kolsrud is a Senior Vice President for Colliers’ Investment Services group (ISg) in Minneapolis-St. Paul. Mark has been involved with the commercial brokerage business for 30 years, and has worked with nearly every major owner in the Minneapolis-St. Paul area, either through Investment Sales or Landlord Representation.

Before joining Colliers International in 2013, Mark was a Senior Managing Director and Principal at Cassidy Turley (formerly Colliers Turley Martin Tucker), where he started in 1991. Mark was a senior member of Cassidy Turley’s Investment Sales group (ISg), where he was responsible for the direction of private and institutional investment sales both locally and nationally.

Mark started his commercial real estate career with the Robert Bobblett & Associates in 1984, where he managed and leased almost five million square feet of property. Later, Mark also spent time in Europe as a real estate consultant in Holland, germany, France and the United Kingdom. Since 1984, Mark has sold and leased more than 20 million square feet and transacted in excess of $1 billion in Investment Sales.



desiGnatiOns

Society of Industrial and Office Realtors designee (SIOR)

Certified Property Manager (CPM)

aWardsBroker of the Year, 2007-2010

Sale Transaction of the Year, 1994, 1996, 2001, 2003-2008, 2010-2011

President’s Club, 1994-1997, 2001, 2003-2011

aFFiliatiOnsMember, Minnesota Commercial Association of Realtors (MNCAR)

Member, National Association of Industrial and Office Properties (NAIOP)


team & experience

majOr transactiOnsCDC Portfolio - $62 millionDuke Realty - $57 millionOne Southwest Crossing - $42.5 millionMIV Portfolio - $37.5 millionMinneapolis Industrial Portfolio - $35.8 milHoyt Properties - $34.5 millionApartment Sales - $20 millionBAE Facility - $19 millionOne Southwest Crossing - $18.4 millionRL Johnson - $16 millionMig/AMB - $15 million375 Rivertown - $14.8 milliongannett Building - $14.4 million

Midway Distribution Center - $14.4 millionNormandale and Eagandale - $13.3 millionWestpoint Business Center - $13 millionHutchinson Technology - $12.5 millionMet Life Portfolio - $12.3 millionBoatworks Building - $12.15 millionRoseville Corporate Center - $12.015 millionCardinal glass Sale/leaseback - $12 millionMidland Building - $11.2 millionNormandale Tech Center - $10.3 millionAegon USA Realty Advisors - $9.8 million

Onward Investors | PORTFOLIO PROPOSAL

OUR TEAM

COLLIERS INTERNATIONAL 15Felton properties inc.

marketinG/cOmmUnicatiOnprOpertY OvervieWWest market

in-HOUse capaBilities

Whether you use one, a few, or all of our services - our mission and passion is to provide our clients with the best possible real estate solutions, leveraging local flexibility on a global platform.

BrokerageInvestment SalesValuationSpecial Asset ServicesDevelopmentBr

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Design/BuildTenant ImprovementsgeneralTrade ConstructionConstruction ManagementCost estimates

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Master planning/Site AnalysisprogrammingSpace planningArchitecture

Interior Design

general MaintenanceBuilding ServiceselectricalplumbingHVAClocksmith

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real estate Managementreal estate AccountingFacility Management

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Dedicated to providing leading regional real estate services and delivering the best client experience.

BrokerageInvestment SalesCorporate ServicesValuationDevelopmentBr

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permanent FinancingConstruction lendingMezzanine lendingequity Financingloan restructuring

Design/BuildTenant ImprovementsConstruction ManagementAdditions/expansionsComplete renovationsCost estimates C

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project ManagementAnalysis & planningArchitecture & DesignConstruction Administrationrelocation Services

general MaintenanceBuilding ServiceselectricalplumbingHVAClocksmith

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real estate Managementreal estate AccountingFacility Managementlease AdministrationSpecial Asset ServicesM

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a 36-Year HistOrY in tHe minneapOlis-st. paUl marketIn 2011 Welsh partnered with Colliers International for its brokerage and real estate management services—leveraging its well-established reputation in the Twin Cities with an international brand. Locally owned and operated and with access to the best global resources, we offer a fully integrated suite of real estate services to best address the ever-evolving needs of each unique client.

Local Expertise. Global Reach.


OUR TEAM




Full Service Commercial Real Estate

BROKERAgE

By combining our knowledge of the Twin Cities commercial real estate market with the global resources of Colliers, our brokerage services are the perfect fit for any organization. We design truly customized services to transform real estate - often one of the largest expenses for a business - into a competitive advantage.

› Completed 1,191 transactions in 2013, totaling over $866 million in consideration

› Ranked #1 in total leasing market share, representing over 19.3 million square feet in the Twin Cities, according to CoStar

› Consistently ranked among top three brokerage firms in the Twin Cities by the Minneapolis/St. Paul Business Journal

By measuring the performance of an asset as a whole and managing for ROI, we maximize the value of each real estate investment. Our professional staff, industry knowledge and commitment to tenant retention enable us to manage your property to the highest industry standard. In addition, industry-leading procurement strategies have reduced portfolio-wide operating expenses by an average of 27% over the past two years.

› Oversees a portfolio of approximately 25+ million square feet of office, industrial, retail, and multi-family properties

› Serving the needs of more than 2,000 tenants daily

› Accredited Management Organization® (AMO®)

› 24/7 call center

REAL ESTATE MANAgEMENT

We bring your real estate vision to life - whether it’s through new commercial construction, tenant improvement, addition/expansion, or complete renovation. You can expect on-time scheduling, precision estimating, craftsmanship quality, and experienced on-site construction supervision on each and every project.

› Ranked as a Top general Contractor in the Minneapolis/St. Paul Business Journal since 2010

› In the past 10 years, more than 30 companies have used Welsh as their general contractor on four or more projects

› On post-project surveys, 100% of our clients have rated their overall experience as Satisfied, and 84% are Very Satisfied

CONSTRUCTION


OUR TEAM




Providing comprehensive architectural,design, and project management services, we bring a creative approach to each project. Throughout the design process, we never lose sight of our clients’ specific needs and expectations, and we proactively anticipate challenges and develop solutions. We keep projects on track in a timely, cost-effective manner.

› Plan over 300 work places a year › 78% of our work is from repeat clients › 64% of clients work with us on multiple

projects › Registered in more than 15 states

ARCHITECTURE

Our in-house technicians can diagnose and repair any problem, install new services and fixtures, perform general maintenance services, and complete building condition reports. Whether you need a single toilet repaired, or a major overhaul of your HVAC system, we have the tools and expertise to handle all of your facility maintenance needs.

› Available 24/7, 365 days a year › Performing nearly 7,000 work orders

annually › Serviced 650 unique clients across 1,500

locations in 2013 › 2013 client survey results show 93%

satisfied or very satisfied with our performance

FACILITYSERVICES

We provide a variety of creative financing solutions for developers, owners and investors of various commercial real estate properties. Whether you’re looking for straight-forward construction financing, or need unique mezzanine financing solutions, our commercial real estate financing experts can come up with the right way to finance your projects.

› Ranked as one of Midwest Real Estate News’ “Best of the Best”

› Transaction volume totaling over $1.54 Billion

› 530 Commercial Loans › With 81 lenders since inception in 1998

CAPITAL

Full Service Commercial Real Estate


COLLIERS INTERNATIONAL | MINNEAPOLIS - ST.PAUL

> Leasing and Marketing

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REPRESENTATIVE CLIENTS> Hines> Opus> Prudential> Ryan Companies> State Farm> Local Entrepreneurs

Office Brokerage

As a leader in office brokerage and leasing, our emphasis is on strong relationships and clear communication. As a result, our office team of 27 agents completed more than 417 office lease and sale transactions in 2013, involving nearly 5.2 million square feet of office space with total consideration nearing $390 million.

With deep local roots and team stability, our brokers specialize by regional submarket as well as by property type covering every corner of the market. We know every building, every landlord, every deal happening in the market. Our depth of experience, comprehensive database, sound market research, and technological expertise enable us to instantly identify and target the most likely prospects, creating the greatest value for our clients.

Lease negotiations are often complex and tightly scheduled. While our objective is to aggressively complete lease transactions to enhance the value of our clients’ properties, we will not hesitate to advise our clients to step back from a transaction if it does not advance previously established business and financial goals.

Our innovative approach to commercial real estate combined with a comprehensive understanding of the unique processes involved in leasing and brokerage transactions keeps our clients coming back year after year.


APPENDIX

COLLIERS INTERNATIONAL 20

marketinG/cOmmUnicatiOn

Leasing Marketing Plan

prOpertY OvervieWWest market

marketinG/cOmmUnicatiOn

implementatiOnWhen Colliers takes on an assignment, we take nothing for granted. All information relating to the project is compiled and reviewed from the beginning. We take tremendous pride in our tenant relations strategies and will sit down with each tenant and key decision makers beginning on day one. We would initially target 290 tenants within a three mile radius and gradually expand our marketing efforts to the entire 394 and Northwest market.

30-daY leasinG plan• Review overall leasing strategy, promotions and goals review and update accordingly• Property inspection, space tours of building• Continue cold calling campaign - ongoing• Maintain website - ongoing • Initiate mailings and emails to brokers according to marketing plan - ongoing• Maintain property listings with various commercial real estate services (i.e. MNCAR, Costar, MN Real Estate Journal, Loopnet, Property First)• Target tenant mailings to competitive buildings• Report to owner• Team meeting (frequency of meetings to-be-determined)• SharePoint Website

tenant retentiOnTenant retention is a key component of a property’s performance and, as such, is considered to be crucial to the property. An effective tenant relations program is critical to tenant retention and is accomplished by the Colliers team developing a positive, professional relationship with each tenant. Tenant relationships are founded on frequent communication; the Colliers brokers are always aware that it is important for our tenants to know that we want to help them be successful. Our prompt, customer-centric service leads to tenant retention and an easier lease renewal or expansion transaction.

leasinGColliers is a proven leader in industrial and office leasing, with the leasing agents emphasizing professional relationships and timely communication. With extensive market knowledge and superior negotiating skills, Colliers brokers take a proactive approach to leasing. The Colliers team completed 1,191 lease and sales transactions in 2013. Colliers brokers provide periodic market activity updates to ownership, enabling the property owner to remain apprised of the dynamics of the market and submarket in which the property is located.


marketinG

Our marketing and research departments collaborate to offer a variety of targeted marketing capabilities that can be tailored to fit your specific and unique business needs.

� Reach beyond traditional “outbound” marketing tactics to engage prospects � Engage in “inbound” techniques of content marketing � Produce relevant, knowledge-driven content to encourage dialogue with

interested prospects

� Colliers database of tenants in the market � Local and national listing services � Broker open house and event planning � Leverage vast network of local and national brokerages

� iPad and mobile phone applications for opportunity exposure � Responsive design templates and marketing collateral � QR Codes

� More than 300,000 monthly impressions generated through in-house media relations

� Placement in local, regional, national and trade publications

� Customized brochure showcasing buildings � Market and demographic information � Property photos, site plans, and floor plans � Maps and aerials � Highlight local amenities

� Targeted e-campaigns � Digital collateral � Customized website � Interactive property tours

� Leverage valuable LinkedIn, Facebook and Twitter distribution channels

� Direct marketing to prospective tenants and the brokerage community

� Custom reporting to measure campaign performance � Insight on highly engaged prospects � Use data to refine marketing strategy � Email reports � google analytics � Lead activity

OUTBOUND & INBOUND MARKETING pRINT MEDIA

BROKER/REFERRAL MARKETING

MOBILE MARKETING

pUBLIc/MEDIA RELATIONs

DIGITAL MEDIA

sOcIAL MEDIA

ANALyTIcs

Telling Your Story


APPENDIX


Aerial Map

Address City, State Zip Number on report7767 Elm Creek Blvd Maple Grove, MN 55369 1

3300 Fernbrook Ln Plymouth, MN 554475338 2

6000 Nathan Ln N Plymouth, MN 554423274 3

7100 N Northland Cir Brooklyn Park, MN 55428 4

7225 N Northland Dr Brooklyn Park, MN 55428 5

Colliers International/MinneapolisSt Paul http://www.colliers.com/enus/minneapolisstpaulInformation obtained from sources deemed reliable. While considered accurate, we make no guarantee, warranty or representation.

Competitive Properties1 Maple Grove Executive Plaza2 Plymouth Woods Office Center3 6000 Nathan Lane N4 Quadrant Office Building5 Northland Corporate Center

54

3

2

1


prOpertY analYsis

Competitive Properties Aerial


APPENDIXprOpertY OvervieWWest market

prOpertY analYsis


Survey Competitive Properties

LOCATIONBUILdINg

SIzEAvAILABLE SF qUOTEd NET RATE PSF CAM/TAx PSF

(2014) YEAR BUILT OCCUPANCY %

1maple Grove executive plaza7767 Elm Creek BlvdMaple grove, MN

58,500 SF 8,974 SF $14.00 $12.25 1998 84.66%

2Plymouth Woods Office Center3300 Fernbrook LanePlymouth, MN

85,232 SF 10,392 SF $13.00 $10.18 1999 87.81%

36000 nathan lane Building6000 Nathan Lane NPlymouth, MN

182,250 SF 105,220 SF $11.00 - $14.00 $9.75 1999 42.27%

4Quadrant Office Building7100 Northland Cir NBrooklyn Park, MN

103,362 SF 62,410 SF $10.00 - $12.00 $8.10 1986 39.62%

5northland corporate center7225 Northland Dr NBrooklyn Park, MN

189,204 SF 30,000 SF $12.00 $8.56 1985 84.14%



prOpertY analYsis


Lease Comparables

LOCATION TENANT SPACE SIzE TERMSTARTINg NET

RENTAL RATES/INCREASES

CAM/TAx PSF (2014) TI’S CONCESSIONS

1Weaver lake town Ofc park11322 86th Ave NMaple grove, MN

American Portfolio Management 3,332 SF 36 months

$10.75$0.50 annual

increases$6.95 None None

2parkdale center5100 gamble DriveSt. Louis Park, MN

Northern Star Oral & Maxillofacial Surgery 2,551 SF 120 months

$12.35$0.35 annual

increases$12.58 $40.00 None

3parkdale ii5402 Parkdale DriveSt. Louis Park, MN

Steven Scott Management, Inc. 6,179 SF 72 months

$11.00$0.25 annual

increases$10.99 $25.00 4 months free

rent

4parkdale iv5353 gamble DriveSt. Louis Park, MN

Marketing Management, Inc. 2,505 SF 39 months $9.75 $10.99 $7.00 3 months free

rent

5plymouth professional ctr ii9800 Rockford RoadPlymouth, MN

gerald A. Wimmer & gary L. Williams 1,719 SF 120 months

$14.00$0.25 annual

increases$9.77 None

(renewal) None

6plymouth Woods Ofc center3300 Fernbrook Lane NPlymouth, MN

Baune Dosen & Co LLP 7,582 SF 120 months

$11.00$0.25 annual


rent



prOpertY analYsis


Lease Comparables




7505 Waterford park505 N Highway 169Plymouth, MN

Appleone 2,888 SF 65 months$14.50

$0.50 annual increases

$11.98 $20.00 None

8Wedgewood commerce ctr i6900 Wedgewood RoadMaple grove, MN

Cyberonics, Inc. 4,270 SF 39 months$12.25


$8.33 $17.00 3 months free rent

9Westwood Lake Office Park8441 Wayzata Blvd golden Valley, MN

Reynolds Consumer Products, Inc. fka Practiv Corp

2,301 SF 36 months$17.55 (gross)$0.35 annual


10Quadrant Office Building7100 Northland Cir NBrooklyn Park, MN

Engle, Martin & Associates, Inc. 2,397 SF 38 months $8.25 $8.26 None

(renewal) None

11parkdale plaza1660 Highway 100 SSt. Louis Park, MN

Wakely Consulting 3,818 SF 63 months$12.00



12Westwood Lake Office Park8421 Wayzata Blvdgolden Valley, MN

Maxim Healthcare Services, Inc. 2,341 SF 60 months

$18.00 (gross)$0.25 annual


rent



prOpertY analYsis


Lease Comparables




13Golden Hills ii6100-6190 golden Hills Drgolden Valley, MN

Virteva 19,016 SF 126 months$10.00



14atria corporate center3033 Campus DrivePlymouth, MN

Charter Solutions, Inc. 3,706 SF 44 months

$14.85$0.35 annual


rent

15435 metropoint435 Ford RoadSt. Louis Park, MN

Credit Adjustments, Inc. 3,715 SF 40 months

$14.50$0.25 annual


rent

1655 West Financial center10405 6th Ave NPlymouth, MN

US Bank National Association 20,752 SF 65 months

$10.50$0.25 annual


17parkdale iii5354 Parkdale DriveSt. Louis Park, MN

North Mill Capital LLC 5,503 SF 60 months$11.85



18plymouth professional ctr ii9800 Rockford RoadPlymouth, MN

Mental Health Systems 5,212 SF 84 months

$14.00$0.25 annual


rent



prOpertY analYsis


Sale Comparables

LOCATIONBUILdINg

SIzEYEAR BUILT

CLASS dATE SOLd SALE PRICE PRICE PER SF CAP RATE BUYER SELLER

1Valley Creek Office Park8301 golden Valley Roadgolden Valley, MN

128,628 SF 1998 B Aug 2014 $14,450,000 $112.34 8.50% Frauenshuh Companies CW Capital

2Bass creek corporate center9955 59th Ave NPlymouth, MN

120,122 SF 2000 A May 2014 $10,890,000 $90.66VacantOwner

Occupied

Polaris Industries

Westminster Funds

3northland circle7077 Northland CircleBrooklyn Park, MN

22,245 SF 2007 B Nov 2013 $2,200,000 $98.90 10.00%Providence Minneapolis, LLC

Eagle Valley Bank

4Quadrant Building7100 Northland Circle NBrooklyn Park, MN

106,666 SF 1990 B July 2014 $2,525,000 $23.67 N/A Hempel Properties

garrison Investment group

5Wirth corporate center4150 Olson Memorial Hwygolden Valley, MN

89,626 SF 1990 B Aug 2014 $4,530,000 $50.54 Vacant Mortenson Companies IRET



prOpertY analYsis


Sale Comparables

LOCATIONBUILdINg

SIzEYEAR BUILT

CLASS dATE SOLd SALE PRICE PRICE PER SF CAP RATE BUYER SELLER

613700 Reimer Dr Office Bldg13700 Reimer Dr NMaple grove, MN

20,989 SF 2005 B Apr 2013 $1,848,300 $88.06 13.25%Reimer Drive Investments, LLC

Bank of America

7sycamore plaza6401 Sycamore Ln NMaple grove, MN

71,500 SF 1997 A Nov 2012 $8,000,000 $111.89 Owner Occupied

Vascular Solutions

Dayhu Investments U.S. Corp


APPENDIX



prOpertY analYsis

Market SummaryWedgewood Commerce Center I prOpertY OvervieW Wedgewood Commerce Center I is a four story, 85,000 square foot, Class B office building in Maple grove. It is part of the master planned Wedgewood Park which consists of primarily one story showroom buildings. The building competes with Class B options in the Northwest market in Maple grove, Plymouth and Brooklyn Park.

strengths> good visibility and presence on I-494.> Quality construction with nice glass line.> Underground parking.> Area amenities including hotels and restaurants.> Professional environment.

Weaknesses> Access is difficult off of I-494.> Few building amenities.> Dated common areas and vacancies.

Opportunities > Building signage on I-494 for large users. > Strong I-394 office market. > Potential for medical tenants.> Improving Northwest and Maple Grove office market.

Threats> Northwest vacancy rates are traditionally higher than

the West market. > One story flex options are cost effective.

recOmmendatiOns> Upgrade common areas and vacancies.> Remove water feature and replace with soft

seating areas. > Improve building conference room.> Offer building signage to large users. > Relocate building monument sigange. > Target medical and medical tech users.


APPENDIX



prOpertY analYsis

Projected RatesWedgewood Commerce Center I

prOjected rates FOr neW deals

Net Rental Rate $11.50 with 3% annual increases

Term 65 months

Concession One month gross rent per year

Tenant Improvements $20.00 - $25.00 per rentable square foot

prOjected rates FOr reneWals

Net Rental Rate $12.00 with 3% annual increases

Term 65 months

Concession One month net rent per year

Tenant Improvements $10.00 - $15.00 per rentable square foot




> Capital Improvements


APPENDIX



capital imprOvements

Capital ImprovementsWedgewood Commerce Center I The building has a nice presence and handsome exterior appearance with a combination of glass and stone. The interiors of the building are quite dated. The bulk of our recommendations can be defined as getting the “ugly” out of the building. New finishes and remodel of the water feature would update the lobby. The building lobby and common areas are dark and should be given more light.

The primary benefit of refreshing the common areas would be to shorten the lease up time for the building and also allow Wedgewood to win more deals. There are a lot of dated Class B buildings in the market and we have seen a direct correlation between updated common areas and vacancies and increased leasing velocity. We updated the common areas at Southdale Office Centre in Edina Realty and the building has outperformed the Class B market in the Southwest. Prior to updating the common areas we were at 82% occupancy. Now we are at 91% occupancy.

There are a number of options for tenants in the Maple grove and Northwest market and the owners that are able to update the common areas and vacancies will have the highest occupancy and be able to achieve the best rental rates.

recOmmendatiOns> Replace water feature in lobby with soft seating

area.> Update carpet and wall covering in common areas. > Update ceiling tiles and lights in common areas. > Remove paracube lenses in main lobby.> Replace mirrored ceiling in main lobby.> Remove and replace chrome railings on second floor

and potentially wrap large chrome columns. > Explore raising the ceiling in lower level conference

room and lower level lobby. 7 foot ceiling is too low.> Install electronic directory.> Upgrade ceiling and lights in select vacancies. > Demo and white box select vacancies. > Relocate monument sign to a more prominent spot.



> Compensation



Fees

cOmmercial leasinG Fees

> $1.00 per rentable square foot of space per year of lease term for deals with terms of four years or less.

> $5.00 per rentable square foot of space for deals with five years of lease term, and an additional $0.50 per rentable square foot of space for each additional year(s) of lease term.

> In the event Lessee is procured by any other broker than the listing broker, Les-sor shall pay a total co-brokered fee equal to 150% of the above schedule with a minimum $5.00 total fee on a three year term.

> Payment of commission shall be One-Half (½) of the total commission upon the execution of the Lease by both Lessor and Lessee, and the balance of the total commission is due when Lessee takes possession of the Leased premises.

> In the case of lease renewals, commissions will be one-half of the above sched-ule with a minimum of $2.00 per rentable square foot.

.



Fees

prOpOsed prOpertY manaGement FeeManager shall be entitled to a monthly management fee equal to the greater of 2.75% of gross revenue or $1,500 per month for the portfolio.

The fees will include full-service, professional, property management and accounting services.

cOnstrUctiOn manaGement FeesAmount Fee %Up to $100,000 2.5%$100,001 - $250,000 2%$250,001+ 1.5%

Documents

Wedgwood proposal 11 26 14