Commercial Real Estate Services P.O. Box 997 Snoqualmie, WA Phone (425) Fax (425) Mike Kirkland Broker MK

1. Pre-Acquisition Process Determine Source/Amount of Equity Investment Determine Desired Product Type Determine Desired Market(s) Determine Target Leverage Ratio Determine Acquisition Deadline, i.e., Trade Driven? Project Macro Market Directions Establishment of Acquiring Entity Prepare Investor Financial Package Determine Debt Preferences Test Debt Market Sources of Funds 2. Acquisition “Contracting” Process Property Search Catalogue Property Preview Pre-Offer Analysis Offer Letter of Intent “LOI” or Real Estate Purchase and Sale Agreement “REPSA” Contract Negotiation Execution of a Binding REPSA Transaction A-Z

3. Due Diligence Process Property Specific, Physical and Fiscal Abstract of REPSA Due Diligence Task List Order Title Establish Title and Escrow Accumulation of Data-Transfer/Development Doc’s Assimilation of Data Into Study Format Abstract of Leases and Contracts Analysis of Data Assemble Vendor Team Physical Study Lender Survey and Application Tenant Credit and Financial Study Market Conditions Study Preparation of Due Diligence Study Results Soft Decision Ordering Third Party Reports 4. Decision Analysis Tenant Interviews Identification of Net Operating Income “NOI” Calculation of Imputed Capitalization “CAP” Rate Determination of Leverage Rate Determination Projected Investment Performance Final Review of Third Party Reports Decision

5. Post Decision/Related Contract Activities Final Loan Application and Commitment Contract Key Event Administration Counter Negotiations Removal of Applicable Conditions Pre Decision Activities Tenant Estoppels Tenant Announcements Vendor Set Up Escrow and Title Work 6. Closing of Transaction Final Review of Transaction Documentation Progress Review of Escrow Closure Documentation Internal Audit- All Proration's/Fees/Transfer Funds Review and Approval of Settlement Statement Notice to Seller Removing All Conditions tot Closing Set Closing Date

8.Management and Operating Cycles 7. Closing and Post Closing Activities Closing of Transaction Post Closing Notices to Tenants Final Management System Set Up Vendor Contracting Banking Set Up Establishment of Tenant Files Compliance Letters Assumption/Establishment of Budget First Billing Statements

I.Mortgages Paid on Time – 21,500 II.Sales – ½ of a Dozen Per Year III.Leases – 130 Per Year IV.Budgets & Rec’s - 3,600

VALUEVALUE TIME The Value Today The Value Tomorrow December 2007 MK Investment Strategy