Asset management

PERSPECTIVE ASSET MANAGEMENT

November 2010

Retail Deals

Duane Reade (Owned by Walgreens) - Anchor Tenant
57th Street and 6th Avenue
Deal Overview •  Acquisition of 8 retail units comprising 28,142 SF Tenants include: •  •  •  •  Duane Reade Drugstore - 12,500 SF •  Expires: January 2026 Jamba Juice – 1,600 SF •  Expires: June 2015 UPS Store – 1,000 SF •  Expires: Jan 2015 Other (TBD)– 13,000 SF Investment Rationale •  Located on a prime block and corner in one of Manhattan’s most upscale shopping areas. Acquisition of full block from 56th to 57th on 6th Avenue (Avenue of the Americas) •  Immediate location is becoming more upscale. Neighboring property is a high-end Hilton Hotel (built in 2009), and there is a new 1 million SF mixed use development under construction ½ blockaway. The new development will include a hotel and condominiums (built by Extell Corporation) •  Stable tenancy – Duane Reade, which comprises 43% of the space, is owned by Walgreens Corporation, an A+ rated firm with a net worth of $16 billion. The lease is long-term and expires in 2026. •  The deal is not currently being actively marketed. It was brought to us by a contact who is friendly withexisting owner.

Financial Overview •  Purchase Price: $33.0 million •  Rental Income: $2.0 million •  Initial Yield: 6.25% •  Assumes vacant space is leased at $200/SF at ground level and $50/SF for lower level

Duane Reade (Owned by Walgreens) - Anchor Tenant
57th Street and 6th Avenue
Location Photo

Bank of America – 25 West 51st Street (Rockefeller Center)
Deal Overview • Acquisition of a triple net leased Bank of America bank branch. •  The bank pays approximately $1,000,000 per year in rent, with 2.75% annual increases •  The lease is 15 years, with one 15-year renewal option at 90% of Fair Market Value •  The unit is approximately 2,600 SF Investment Rationale •  Located in one of the top retail areas of Manhattan, within Rockefeller Center. •  Solid tenant: Bank ofAmerica is one of the largest and most well-respected banks in the US, with a market capitalization of circa $145 billion •  Bank of America corporate debt yields approximately 4%. The initial yield on this transaction is approximately 175 basis points higher than this, and annual increases. •  Annual increase in rent of 2.75%.

Financial Overview •  Purchase Price $18.0 million •  Rental Income:$1.0m ($400/sf) •  Initial Yield: 5.75% •  Annual Lease Increase: 2.75% •  Assuming a sale in Year 5 at a 5.75% cap rate, we would achieve an IRR of approximately 10.5%

Bank of America – Rockefeller Center, NY, NY
Location Photo

Bank of America & T- Mobile
92-98 Delancey Street – NY, NY
Deal Overview •  Acquisition of a net leased retail condo, Southwest corner of Delancey and Ludlowstreets (aka 101 Ludlow Street) on the Lower East Side of Manhattan. •  A 7,720 sq. ft plus basement space of 3,521 sq.ft corner retail condominium with two double net retail national credit tenants: •  •  Bank of America T-Mobile. Financial Overview •  Purchase Price: approx $22m - $23 million •  Rental Income: $1.274 million •  Initial Yield: 5.50% - 6.25% •  Notes: The is an LOI for the basementspace of 3,521 sq.ft to be rented at $76,200 a year which will increase NOI to $1,350,200

Additional Information

Bank of America & T- Mobile
92-98 Delancey Street – NY, NY
Location Photo

Bloomingdales, Inc – SoHo
504 Broadway – NY, NY
Deal Overview •  Acquisition of a triple net leased retail condo, on one of Manhattans busiest shopping areas in on Broadway in SoHo. •  Tenant isBloomingdales, Inc – one of the cities most respected retail stores •  Approximately 115,000SF of prime retail space over 5 floors Financial Overview •  Purchase Price: approx $50m - $55m •  Rental Income: $2.968 million •  Annual lease increases: 1.1% •  Initial Yield: 5.0% - 5.5% •  Lease expiration: Jan 2052 (42 yrs remaining) NET RENT: 2011: 2012: 2013: 2014: 2015: 2016: 2017: 2018: $2,968,000...