Retail Investment Market Overview

1
Retail Investment Market Overview

• Significant Amount of Capital Seeking Retail
  Properties from both the Private and
  Institutional Sector.
• Growth of TIC Sponsors More than 55 Today vs.
  Less Than 10 Four Years Ago.
• Continued Lack of Quality Retail Properties
  Available for Purchase.
• Historically Low 10-Year Treasury Rate (4.55
  as of 2-17-06).
• 1031 Exchange Investors Continue to Pay Highest
  Prices/Lowest Cap Rates.
• Narrow Spread in Cap Rates for Class A, B and C
  Retail Properties.
• Malls Built Today Reflect a Lifestyle Format
  with Department Store Anchors.
• Australian Investors Have Been the Low Cost
  Capital Partners for U.S. Retail REITs.

2
National Financial Returns
Retail Class A
Retail Class B
3
National Retail Bidding Profile
4
National Class A Retail Cap Rates
5
Recent Shopping Center Sales Activity
6
Recent Shopping Center Sales Activity
7
CLOSED SALE City Place Long Beach, California

• ? Total GLA 342,844 square feet
• Tenants Wal-Mart, Ross, Nordstrom Rack
• Occupancy 85
• Price 73,750,000
• Seller Coventry Partners
• Buyer Shooshani Developers LLC
• Broker Todd Goodman Newport Beach

8
CLOSED SALE The Marketplace Bakersfield,
California

• ? Total GLA 298,619 square feet
• ? Tenants Edwards Theatre, Vons, Rite Aid
  Drugstore
• Occupancy 99
• Price 84,500,000
• Seller Castle Cooke
• Buyer Donahue Schriber
• Broker Todd Goodman Newport Beach

9
CLOSED SALE Park Place II Sacramento, California

• ? Total GLA 250,374 square feet
• ? Tenants Kohls, Marshalls, Borders Books
  Music, Bed, Bath Beyond
• Occupancy 95
• Price 68,750,000
• Seller Donahue Schriber
• Buyer SCI Real Estate Investments
• Broker Todd Goodman Newport Beach

10
CLOSED SALE Cerritos Town Center Cerritos,
California

• ? Total GLA 504,736 square feet
• ? Tenants Wal-Mart, Kohls, Edwards Theatres,
  Ross, Office Max, Old Navy, Trader Joes, and
  Best Buy (NAP)
• Occupancy 97
• Price 73,590,000
• Seller The RREEF Funds / Vestar
• Buyer Cornerstone RE Advisers
• Broker Todd Goodman Newport Beach

11
PENDING SALE Downey Landing Downey, California

• ? Total GLA 376,165 square feet
• ? Tenants Best Buy, Marshalls, Bed Bath
  Beyond, Ross, Staples, Michaels, Old Navy,
  PETsMART
• Occupancy 100
• Price /- 109,000,000
• Seller Springcreek Investors/ Eclipse
  Development
• Buyer Pending
• Broker Todd Goodman Newport Beach