Quakerbridge Mall Rte 1 Lawrenceville, NJ Site #4 08/1/2013

Decision Logic Quakerbridge Mall is the areas most desirable retail destination for the affluent people who live and work in Lawrenceville, Hamilton, West Windsor, and Princeton communities. It is a productive regional mall and is in the process of an upscale renovation and expansion that will add another 600,000 sq ft including a Nordstroms scheduled for 2014,2015. In addition, the Mall with the expansion will be adding another 100 stores. Recent additions have been Cheesecake, Apple, H & M, Forever 21, and Brio .

Area Map Quakerbridge Mall

Trade Area / Site Summary

Center Layout (Outdoor) Label Co-Tenants and Competitors Directional arrows for Main Entrance Sales Volumes

Mall Layout Label Co-Tenants and Competitors Pinkberry site Label Co-Tenants and Competitors Directional arrows for Main Entrance Sales Volumes

Site Layout Layout “Proposed” (or “Approved”) by Landlord, Pinkberry Design

Pictures

Center Layout (Outdoor)

Area Overview Quaker Bridge Mall Mercer Mall Sams Club Babies R US Best Buy Wal-Mart Home Goods Dick’s Sporting Goods Michael’s Target Kohl’s Wegman’s Princeton Market Fair

Exterior / Interior Signage Layout “Proposed” (or “Approved”) by Landlord, Pinkberry Design

Sales Forecast Year 1 Year 2 Year 3 Rolling 12-Month Sales 700,000 750,000 800,000

Performa Income Statement - $700,000 Sales $700,000 100.0% Cost of Sales 175,000 25.00% Gross Margin 525,000 75.00% Operating Expenses Labor Expense 190,400 27.20% Other 29,961 4.00% Total Operating Expense 219,961 31.00% Fixed Costs Rent Related Expense 98,000 14.00% Royalties 42,000 6.00% Marketing Fund 28,000 Total Fixed Costs 168,000 24.00% EBITDA 137,039 20.00%

Summary of Lease Terms Basic Rent Terms 200 Square Feet, $550 psf, at rent schedule below Term: 10 Years, at 3% increases every 1 year Percentage Rent – 8% over 1.2million breakpoint CAMs capped at 4% per year 4% promo & media Exclusive Use for Frozen Dessert No Radius Restriction Lease Year Annually Monthly 1-2 $110,000.00 $9,167.00 3-4 $116,699.00 $9,725.00 5-6 $123,806.00 $10,317.00 7-8 $131,345.00 $10,945.00 9-10 $135,285.00 $11,274.00

Timeline Estimates: Date of Lease execution: Approximately August 15, 2013 Date of Landlord Delivery: Approximately October 1, 2013 Date plans complete/submit for Permits: Target plan completion date: August 20, 2013 No Zoning Issues identified Building permit and signage process is expected to take 30 days Permit submission target: August 20, 2013 Date receive permits September 20, 2013 Date construction commences October 1, 2013 Date construction completed October 15, 2013 Date store opens October 25, 2013

Summary Remarks Pros Cons Trade Area Site Specifics High Population High HBA in TA Cons Nordstrom’s will not be opening until 2015 in the most recent estimate. Trade Area High Visibility Good Access Co-Tenants close at 9:30pm Site Specifics Potential Issues: This is one of the top Trade Areas that we identified in our Market Plan. Our location is in the center of activity in this mall which is being upgraded with many stores that our primary demographic interacts with. We are locating here as a long-term strategy and understand the short-term challenge of this location during the mall’s upscale transition.

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