Investment Assumptions
Price of Property	$3,200,000.00
Closing Costs	.5% of Property Price
Date of Acquisition	1 January 2011
Holding Period	10 Years
Inflation Rate	3% per Year
Sale Price Method	Capitalize Next Year's NOI
Sale Price Parameter	8% Net Cap Rate
Selling Costs	7% of Sale Price
Investor's Assumptions
General Vacancy & Credit Loss	Zero
Tax Rate - First Year	41.5%
Tax Rate - Following Years	41.5%
Capital Gain Rate	15%
Cost Recovery Recapture Rate	25% - Losses Taken Currently
Present Value Discount Rate Before Debt	10% per Year
Present Value Discount Rate Before Tax	10% per Year
Present Value Discount Rate After Tax	10% per Year
Depreciation Assumptions
Depreciable Amount	70% of Property Price
Depreciable Life	39 Years
Depreciation Method	Straight Line
Depreciation Start Date	at Acquisition
Loan Assumptions
Loan Amount	1.2 Times Debt Coverage
Loan Interest Rate	8% Annually
Original Loan Period	20 Years
Loan Origination Date	at Acquisition
Loan Type	Monthly Payments, Amortizing
Amortize Points for Tax	Amortized over Loan Life
Loan Points Charged	1 Point
Office Local Profile Assumptions
General Renew New Avg Renewal Probability 70% Market Rent $13.00 $/sf/yr $14.00 $/sf/yr 13.3 $/sf/yr Grow Rent Yes TI's $5.00 $/sf $20.00 $/sf 9.5 $/sf Growth Method %>Inflation Commissions None 5.00 % of Base Rent 1.5 % of Base Rent Growth Rate at the Inflation Rate Abatements None None 0 Lease Duration 5.00 Years End Charges None None 0 Life - TI's 15.00 Years Start Charges None None 0 Life - Commissions 5.00 Years Months Vacant 3.00 Months 1.00 Months Year 1 TI's Zero Reimbursements
Drug Local Profile Assumptions
General Renew New Avg Renewal Probability 30% Market Rent $13.00 $/sf/yr $14.00 $/sf/yr 13.7 $/sf/yr Grow Rent Yes TI's None $10.00 $/sf 7 $/sf Growth Method %>Inflation Commissions None 5.00 % of Base Rent 3.5 % of Base Rent Growth Rate at the Inflation Rate Abatements None None 0 Lease Duration 5.00 Years End Charges None None 0 Life - TI's 15.00 Years Start Charges None None 0 Life - Commissions 5.00 Years Months Vacant 6.00 Months 4.00 Months Year 1 TI's Zero Reimbursements Continue
Small Local Profile Assumptions
General Renew New Avg Renewal Probability 80% Market Rent $15.00 $/sf/yr $16.00 $/sf/yr 15.2 $/sf/yr Grow Rent Yes TI's None $5.00 $/sf 1 $/sf Growth Method %>Inflation Commissions None 5.00 % of Base Rent 1 % of Base Rent Growth Rate at the Inflation Rate Abatements None None 0 Lease Duration 3.00 Years End Charges None None 0 Life - TI's 15.00 Years Start Charges None None 0 Life - Commissions 3.00 Years Months Vacant 6.00 Months 1.00 Months Year 1 TI's Zero Reimbursements Continue
Beauty Local Profile Assumptions
General Renew New Avg Renewal Probability Zero Market Rent None $16.00 $/sf/yr 16 $/sf/yr Grow Rent Yes TI's None $5.00 $/sf 5 $/sf Growth Method %>Inflation Commissions None 5.00 % of Base Rent 5 % of Base Rent Growth Rate at the Inflation Rate Abatements None None 0 Lease Duration 3.00 Years End Charges None None 0 Life - TI's 15.00 Years Start Charges None None 0 Life - Commissions 3.00 Years Months Vacant 6.00 Months 6.00 Months Year 1 TI's Zero Reimbursements Continue
201 Office Revenue Assumptions
Annual Revenue	$120,000.00
Revenue Start Date	at Acquisition
Revenue Period	Until 1 January 2013
Revenue Growth Method	Annual at the Inflation Rate
201 Office To Market Re-Leasing Assumptions
Market Profile	Office Local
Repetitions	Until Projected Sale
201 Office Reimbursement Assumptions (The natural prorata for this tenant is 44.44% (10,000 / 22,500))
Expense Method Amount Prorata Min Max GU% Maintenance $ Stop $0.15/sf/yr Natural None None None Insurance $ Stop $0.15/sf/yr Natural None None None Property Taxes $ Stop $0.15/sf/yr Natural None None None Security $ Stop $0.15/sf/yr Natural None None None Utilities $ Stop $0.15/sf/yr Natural None None None Management Fee $ Stop $0.15/sf/yr Natural None None None
102 Drug Store Revenue Assumptions
Annual Revenue	$94,500.00
Revenue Start Date	1 January 2010
Revenue Period	3 Years
Revenue Growth Method	Accrue by Period at 5% Over Inflation
102 Drug Store Continued Revenue Assumptions
Annual Revenue	Continuation
Revenue Start Date	Continuation
Revenue Period	3 Years
Revenue Growth Method	Accrue by Period at 5% Over Inflation
Description
102 Drug Store To Market Re-Leasing Assumptions
Market Profile	Drug Local
Repetitions	Until Projected Sale
102 Drug Store Reimbursement Assumptions (The natural prorata for this tenant is 33.33% (7,500 / 22,500))
Expense Method Amount Prorata Min Max GU% Maintenance Net None Natural None None None Insurance Net None Natural None None None Property Taxes Net None Natural None None None Security Net None Natural None None None Utilities Net None Natural None None None Management Fee Net None Natural None None None
2102 Drug Store Percentage Rent Assumptions
BreakPoint	$500,000 $/Year
Sales Percent	2.000%
Annual Sales	$700,000 $/Year
Growth Method	% / Year
Growth Rate	2.000%
103 Beauty Salon Revenue Assumptions
Annual Revenue	$29,000.00
Revenue Start Date	at Acquisition
Revenue Period	Until 1 April 2011
Revenue Growth Method	Annual at the Inflation Rate
103 Beauty Salon To Market Re-Leasing Assumptions
Market Profile	Beauty Local
Repetitions	One Time
103 Beauty Salon To Market Re-Leasing Assumptions
Market Profile	Small Local
Repetitions	Until Projected Sale
103 Beauty Salon Reimbursement Assumptions (The natural prorata for this tenant is 8.89% (2,000 / 22,500))
Expense Method Amount Prorata Min Max GU% Maintenance Net None Natural None None None Insurance Net None Natural None None None Property Taxes Net None Natural None None None Security Net None Natural None None None Utilities Net None Natural None None None Management Fee Net None Natural None None None
104 Donuts Revenue Assumptions
Annual Revenue	$29,000.00
Revenue Start Date	at Acquisition
Revenue Period	Until 1 November 2012
Revenue Growth Method	Annual at the Inflation Rate
104 Donuts To Market Re-Leasing Assumptions
Market Profile	Small Local
Repetitions	Until Projected Sale
104 Donuts Reimbursement Assumptions (The natural prorata for this tenant is 8.89% (2,000 / 22,500))
Expense Method Amount Prorata Min Max GU% Maintenance Net None Natural None None None Insurance Net None Natural None None None Property Taxes Net None Natural None None None Security Net None Natural None None None Utilities Net None Natural None None None Management Fee Net None Natural None None None
105 Flowers Revenue Assumptions
Annual Revenue	$14,500.00
Revenue Start Date	at Acquisition
Revenue Period	Until 1 October 2011
Revenue Growth Method	Accrue by Period at 2000% Over Inflation
105 Flowers Continued Revenue Assumptions
Annual Revenue	Continuation
Revenue Start Date	Continuation
Revenue Period	Until 1 July 2013
Revenue Growth Method	Annual at the Inflation Rate
Description
105 Flowers To Market Re-Leasing Assumptions
Market Profile	Small Local
Repetitions	Until Projected Sale
105 Flowers Reimbursement Assumptions (The natural prorata for this tenant is 4.44% (1,000 / 22,500))
Expense Method Amount Prorata Min Max GU% Maintenance Net None Natural None None None Insurance Net None Natural None None None Property Taxes Net None Natural None None None Security Net None Natural None None None Utilities Net None Natural None None None Management Fee Net None Natural None None None
Maintenance Expense Assumptions
Annual Expense	$11,400.00
Expense Start Date	at Acquisition
Expense Period	Until Projected Sale
Expense Growth Method	Annual at the Inflation Rate
Insurance Expense Assumptions
Annual Expense	$4,600.00
Expense Start Date	at Acquisition
Expense Period	Until Projected Sale
Expense Growth Method	Annual at 2% Over Inflation
Property Taxes Expense Assumptions
Annual Expense	1% of Property Price
Expense Start Date	at Acquisition
Expense Period	Until Projected Sale
Expense Growth Method	Annual at 2% Over Inflation
Security Expense Assumptions
Annual Expense	$3,000.00
Expense Start Date	at Acquisition
Expense Period	Until Projected Sale
Expense Growth Method	Annual at the Inflation Rate
Utilities Expense Assumptions
Annual Expense	$3,400.00
Expense Start Date	at Acquisition
Expense Period	Until Projected Sale
Expense Growth Method	Annual at the Inflation Rate
Management Fee Expense Assumptions
Annual Expense	$14,000.00
Expense Start Date	at Acquisition
Expense Period	Until Projected Sale
Expense Growth Method	Annual at the Inflation Rate