72ndCornhuskerInvestmentParticulars

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1.1 EXECUTIVE SUMMARY

Purpose: identify strategic properties (land, improved and non-improved) with a value-added situation,develop and implement a plan to increase the assets value, then rea lize the new value through a sale,refinance or increased operating profits.

The purpose of this strategic business plan is to lay out the process and facts regarding an improvedpiece of land containing approximately 2.4 acres or 104,544 square feet. The general improvementsconsists of a general purpose multi-tenant retail facility containing approximately 23,655 gross squarefeet, concrete drives, parking, signage, lighting and all utilities connected to the improvements. Theproperty was developed in 2004. The purpose of this report is to analyze the facts by developing,revitalizing, leasing and managing the investment property to create value for the company andinvestors and or prospective purchaser.

Objectives

The objectives will be:

Ultimate sale of the subject improvements and real estate.

Pre-lease or obtain letters of intents prior to any revitalization. At a minimum of 50% of thegross square feet at market rents.

Obtain all necessary bids necessary to re-construct improvements.

Keys to Success

The keys to a successful implementation of this business plan include:

Hiring and retaining people with proven records to implement the plan.

Keeping ahead of the market curve in pricing and renting vacant units. Careful implementation of the plan and budget.

Project:

Area:

The property is located in Papillion, Nebraska (Sarpy County), immediately south of Omaha (DouglasCounty) and is considered part of the Omaha Metropolitan Area. The Retail Center is located at 749Pinnacle Drive, Papillion, Nebraska 68046, directly west to 72 nd Street, which is Metropolitan Omahas

major (4 to 6 lanes) north/south corridor and sits in the northwest quadrant of 72nd

Street andCornhusker Road, which is one of Sarpy Counties most heavily trafficked intersections with in excess of 34,000 cars per day. The property is bounded with Cornhusker Drive to the North, Harrison Street to theSouth, 84 th Street to the West and 72 nd Street to the East. All are major four lane arterial routes.


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Activity within a one mile radius of the subject property has been accelerated by the excellent arterialroutes, expansion of growth of population by Papillion, now pushing east of 72 nd Street, with Bellevuerapidly expanding west towards 72 nd Street. The immediate area has become in-fill developments due tothe two cities growth. Commercial activity has not been unexpected given the strong demographics(median household income in excess of $80,000.00 per year and with household growth in excess of 8%per year (resulting in a doubling of nearby households since 1990).

Retail activity within a one mile radius has resulted with development in-excess of 1.4 million squarefeet. The closest center, (under one mile to the North at 72 nd Giles), Market Pointe, is anchored by Wal-Mart and Lowes and s mall box stores. Shadow Lake located to the South at 72 nd and Hwy 370, is one of the areas Premier Outdoor Malls and is anchored by almost every notable National large and mediumbox Retailer (JC Pennys, Dick Sports, Best Buy, Old Navy, Pet Smart, Bed Ba th & Beyond, Dress Barn,along with small box space featuring TJ Max, Sally Beauty, Lens Crafters, GNC, Aeropastel, Maurices,Justice, American Eagle, Ann Tayor, Jos A. Banks, etc. Please see attached a list of Retail centers andRetailers located within the immediate area.

Rental rates for small shop space within a three mile radius ranged from a low of $5.25 to a high of $22.00 per square foot with the average rent per square foot of $14.73. Survey consisted of 25 retail


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facilities, majority in-line spaces, with a total of 187,036 square feet available for lease. With the rentalranges in the upper end just within a one mile distance, this positions our improvement with anexcellent rental rate and location perspective (almost halfway between the two larger centers. Pleasesee attached exhibit.


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The Papio Pointe building was built in 2004 and was recently over 90+% leased by multiple tenants. Thebuilding currently has a prime anchor location available, with approximately 15,500 square feetavailable. The property currently has two drive-thru lanes, monument signage, a Tuscan Design withstone, efis and glass store front windows. The property sits on approximately 2.4 acres of land andincludes 133 parking spaces for a ratio of 5.6 per 1000 square feet. Access to the site is excellent via 72 nd

street onto Pinnacle Drive (North of bldg) and Cornhusker onto Pinnacle (just to the South). Exposureand visibility from 72 nd Street and Cornhusker is excellent.

Papio Point is an attractive retail center primed for an anchor tenant. With excellent exposure, accessalong Omahas major north/sou th corridor, strong area growth, location and competitive pricing willoffer a unique opportunity to potential tenants and or purchaser.

Zoning: Commercial

Arterials: The traffic arteries in the market area are considered excellent.

Economics: Rental projections were estimated and construed from actual letters of intent to leaseon the proposed retail project. The typical leases will be for five years, with totalexpense recapture. It is envisioned that there will be an increase (bump) at an estimated5% over years 1 6. Expenses were calculated on an annual basis at an estimated$3.15/sf which covers management, taxes, and insurance and common area


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maintenance recoveries. Please see project development budget, Net present valuecalculation and Sensitivity Analysis.

Building Square Feet: 23,655

Land Acre/Square Feet 2.44 Acres or 106,243 square feet

Land to Building Ratio 22%

No. Buildings 1

No. Stories 1

Street Frontage Yes

No. of Parking Spaces 133 stalls or 5 spaces per 1,000 square feet

Location class A

Building Class Class A Multi-tenant Retail Building

Zoning Commercial

Year built Mid 2004


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Development Plans :

The plan will feature an environmentally conservative approach to re-developing any proposed improvements. Thebusiness plan complementing the re-development suggests a net present potential value for the proposed project ,when complete and 95% occupied, a value in excess of $3.7 million USD utilizing a 8% capitalization rate.

Assumptions:

This business plan has the following assumptions.

There is no radical negative change in the neighborhood that the site and improvements will belocated in. Red development is grading land directly east and across 72 nd Street, which I willbelieve will add to the further demand for the area.

Our site is directly in the middle of two major retail centers. Occupancy in these facilities appearto be near 100%. Given our excellent location, access, and exposure. Our property is and can berevitalized into an excellent general purpose, multi-tenanted retail center. I believe it will be willaccepted and absorbed by multiple type tenants.

No laws are changed or passed to adversely affect the zoning/use of the property and itsintended use

Documents

72ndCornhuskerInvestmentParticulars