Property Investment Particulars

Papio Point 72nd & Cornhusker

Multi-Tenant Retail Investment Opportunity

23,655 Gross Square Feet

February 1, 2010

Proprietary and Confidential

This is a business plan for evaluation purposes and is not an offering of securities.
 1.1 EXECUTIVE SUMMARY

Purpose: identify strategic properties (land, improved and non-improved) with a value-added situation,
develop and implement a plan to increase the assets’ value, then realize the new value through a sale,
refinance or increased operating profits.

The purpose of this strategic business plan is to lay out the process and facts regarding an improved
piece of land containing approximately 2.4 acres or 104,544 square feet. The general improvements
consists of a general purpose multi-tenant retail facility containing approximately 23,655 gross square
feet, concrete drives, parking, signage, lighting and all utilities connected to the improvements. The
property was developed in 2004. The purpose of this report is to analyze the facts by developing,
revitalizing, leasing and managing the investment property to create value for the company and
investors and or prospective purchaser.

Objectives
The objectives will be:
 Ultimate sale of the subject improvements and real estate.
 Pre-lease or obtain letters of intents prior to any revitalization. At a minimum of 50% of the
gross square feet at market rents.
 Obtain all necessary bids necessary to re-construct improvements.

Keys to Success
The keys to a successful implementation of this business plan include:
 Hiring and retaining people with proven records to implement the plan.
 Keeping ahead of the market curve in pricing and renting vacant units.
 Careful implementation of the plan and budget.

Project:

Area:

The property is located in Papillion, Nebraska (Sarpy County), immediately south of Omaha (Douglas
County) and is considered part of the Omaha Metropolitan Area. The Retail Center is located at 749
Pinnacle Drive, Papillion, Nebraska 68046, directly west to 72nd Street, which is Metropolitan Omaha’s
major (4 to 6 lanes) north/south corridor and sits in the northwest quadrant of 72nd Street and
Cornhusker Road, which is one of Sarpy Counties most heavily trafficked intersections with in excess of
34,000 cars per day. The property is bounded with Cornhusker Drive to the North, Harrison Street to the
South, 84th Street to the West and 72nd Street to the East. All are major four lane arterial routes.

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Activity within a one mile radius of the subject property has been accelerated by the excellent arterial
routes, expansion of growth of population by Papillion, now pushing east of 72nd Street, with Bellevue
rapidly expanding west towards 72nd Street. The immediate area has become in-fill developments due to
the two cities growth. Commercial activity has not been unexpected given the strong demographics
(median household income in excess of $80,000.00 per year and with household growth in excess of 8%
per year (resulting in a doubling of nearby households since 1990).

Retail activity within a one mile radius has resulted with development in-excess of 1.4 million square
feet. The closest center, (under one mile to the North at 72nd Giles), Market Pointe, is anchored by Wal-
Mart and Lowe’s and small box stores. Shadow Lake located to the South at 72nd and Hwy 370, is one of
the areas Premier Outdoor Malls and is anchored by almost every notable National large and medium
box Retailer (JC Penny’s, Dick Sports, Best Buy, Old Navy, Pet Smart, Bed Bath & Beyond, Dress Barn,
along with small box space featuring TJ Max, Sally Beauty, Lens Crafters, GNC, Aeropastel, Maurices,
Justice, American Eagle, Ann Tayor, Jos A. Banks, etc. Please see attached a list of Retail centers and
Retailers located within the immediate area.

Rental rates for small shop space within a three mile radius ranged from a low of $5.25 to a high of
$22.00 per square foot with the average rent per square foot of $14.73. Survey consisted of 25 retail

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facilities, majority in-line spaces, with a total of 187,036 square feet available for lease. With the rental
ranges in the upper end just within a one mile distance, this positions our improvement with an
excellent rental rate and location perspective (almost halfway between the two larger centers. Please
see attached exhibit.

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The Papio Pointe building was built in 2004 and was recently over 90+% leased by multiple tenants. The
building currently has a prime anchor location available, with approximately 15,500 square feet
available. The property currently has two drive-thru lanes, monument signage, a Tuscan Design with
stone, efis and glass store front windows. The property sits on approximately 2.4 acres of land and
includes 133 parking spaces for a ratio of 5.6 per 1000 square feet. Access to the site is excellent via 72nd
street onto Pinnacle Drive (North of bldg) and Cornhusker onto Pinnacle (just to the South). Exposure
and visibility from 72nd Street and Cornhusker is excellent.

Papio Point is an attractive retail center primed for an anchor tenant. With excellent exposure, access
along Omaha’s major north/south corridor, strong area growth, location and competitive pricing will
offer a unique opportunity to potential tenants and or purchaser.

Zoning: Commercial

Arterials: The traffic arteries in the market area are considered excellent.

Economics: Rental projections were estimated and construed from actual letters of intent to lease
on the proposed retail project. The typical leases will be for five years, with total
expense recapture. It is envisioned that there will be an increase (bump) at an estimated
5% over years 1 – 6. Expenses were calculated on an annual basis at an estimated
$3.15/sf which covers management, taxes, and insurance and common area

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 maintenance recoveries. Please see project development budget, Net present value
calculation and Sensitivity Analysis.

Building Square Feet: 23,655

Land Acre/Square Feet 2.44 Acres or 106,243 square feet

Land to Building Ratio 22%

No. Buildings 1

No. Stories 1

Street Frontage Yes

No. of Parking Spaces 133 stalls or 5 spaces per 1,000 square feet

Location class A

Building Class Class A Multi-tenant Retail Building

Zoning Commercial

Year built Mid 2004

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Development Plans:

The plan will feature an environmentally conservative approach to re-developing any proposed improvements. The
business plan complementing the re-development suggests a net present potential value for the proposed project,
when complete and 95% occupied, a value in excess of $3.7 million USD utilizing a 8% capitalization rate.

Assumptions:
This business plan has the following assumptions.
 There is no radical negative change in the neighborhood that the site and improvements will be
located in. Red development is grading land directly east and across 72nd Street, which I will
believe will add to the further demand for the area.
 Our site is directly in the middle of two major retail centers. Occupancy in these facilities appear
to be near 100%. Given our excellent location, access, and exposure. Our property is and can be
revitalized into an excellent general purpose, multi-tenanted retail center. I believe it will be will
accepted and absorbed by multiple type tenants.
 No laws are changed or passed to adversely affect the zoning/use of the property and its
intended use

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