1 EXHIBIT (C)(2) PROJECT FLEX SPECIAL COMMITTEE PRESENTATION STRICTLY PRIVATE AND CONFIDENTIAL - PRELIMINARY DRAFT CHASE SECURITIES INC. MAY 2, 2000 [CHASE LOGO] 2 TABLE OF CONTENTS - -------------------------------------------------------------------------------- EXECUTIVE SUMMARY............................................................................................ I SUMMARY OF LEND LEASE / DDR PROPOSAL......................................................................... II PRELIMINARY PORTFOLIO VALUATION.............................................................................. III PRELIMINARY NAV ANALYSIS..................................................................................... IV PRELIMINARY LIQUIDATION ANALYSIS............................................................................. V DDR PUT OPTION CONSIDERATIONS................................................................................ VI PRELIMINARY COMPANY VALUATION................................................................................ VII REVIEW OF CSI DISCUSSIONS WITH LEND LEASE.................................................................... VIII REVIEW OF CSI DISCUSSIONS WITH DDR........................................................................... IX REVIEW OF SELECTED STRATEGIC ALTERNATIVES.................................................................... X NEXT STEPS AND CONSIDERATIONS................................................................................ XI Appendices Preliminary Property Valuation Detail................................................................... A Precedent Transactions.................................................................................. B Public Company Comparables.............................................................................. C Sales Comparables....................................................................................... D [CHASE LOGO] 3 EXECUTIVE SUMMARY [CHASE LOGO] 1 4 PROJECT FLEX - EXECUTIVE SUMMARY BACKGROUND - -------------------------------------------------------------------------------- [ ] In May 1999, Salomon Smith Barney ("SSB") was retained by American Industrial Properties REIT ("AIP" or the "Company") to conduct a broad review of strategic alternatives, including: - Status quo - Re-focused business plan ("TechRealty") - Selected asset sales - Strategic merger(s) - Sale of the Company - Liquidation of assets [ ] Chase Securities Inc. ("CSI") understands that the Special Committee has thoroughly examined these selected strategic alternatives and the potential implications of adopting such alternatives [ ] In addition to evaluating strategic alternatives, SSB also provided its viewpoint on the following important valuation benchmarks: - Net asset value ("NAV"): $12.50 to $14.60 per share (as of 12/13/99)(1) - Liquidation value: $11.43 to $14.05 per share (as of 12/13/99) [ ] In addition to providing Company and real estate valuation analyses, SSB also provided a view on the theoretical value of the AIP / DDR Put Option - Theorized that the value of the put option equals the difference between the proceeds received by AIP less the fair market value of the securities issued to DDR - Discounted this value using the Black-Scholes option pricing model (1) Updated by CSI based on 5/1/00 current net debt and shares outstanding (for comparative purposes) [CHASE LOGO] 2 5 PROJECT FLEX - EXECUTIVE SUMMARY BACKGROUND (CONTINUED) - -------------------------------------------------------------------------------- [ ] As part of SSB's engagement, it distributed and solicited indications of interest to acquire the Company - 60 potential bidders were contacted, including public REITs, private companies, dedicated real estate funds, pension funds, and pension fund advisors - Bidders were asked to bid for all or a significant portion of the Company's assets - Some interested parties expressed interest in only certain assets; SSB encouraged these parties to submit proposals while emphasizing that the Company preferred a transaction including a complete sale of the Company to a single buyer [ ] AIP received eight initial indications of interest, including two for the Company and seven for selected assets (including the LOI submitted by Westcore Industrial on 4/20/00) - Two written bids were submitted for the entire Company, subject to due diligence o Olympus: $13.00 per share (included significant mezzanine debt contribution from existing AIP shareholders) o Lend Lease: $13.58 per share in cash - Whitehall and DLJ expressed verbal indications of interests of $10.50 to $11.00 and just under $13.00, respectively, but both declined a request to submit a written offer - Four other firms expressed interest in selected assets [ ] The board then instructed SSB to ask Lend Lease and Olympus to raise their bids [ ] Olympus declined to raise its offer, but Lend Lease indicated it might be able to bid a higher value for a portion of the assets, if it were not required to bid for the entire Company [ ] On 12/23/99, SSB presented Lend Lease's bid for a portion of the assets to the board, which included a scenario which would merge the remaining Company (following the partial sale to Lend Lease) with Developers Diversified Corporation ("DDR") [CHASE LOGO] 3 6 PROJECT FLEX - EXECUTIVE SUMMARY BACKGROUND (CONTINUED) - -------------------------------------------------------------------------------- [ ] Subsequent negotiations between SSB and DDR / Lend Lease (including several alterations to the mix of assets being purchased by Lend Lease) have resulted in revised proposals by DDR and Lend Lease under which: - Lend Lease purchases 31 assets for $288.7 million - The Company will sell Manhattan Tower separately (valued at $44 million by Lend Lease) - DDR merges with the remaining Company for $272 million [ ] On 4/18/00, CSI was asked by the Special Committee to consider its available alternatives, with specific consideration to the following: - Evaluation of the DDR and Lend Lease proposals - NAV value and liquidation value of the Company - Strategic alternatives in light of the DDR/Lend Lease proposals - Review of the equity purchase agreement between AIP and DDR [ ] During the past five days, CSI has: - Reviewed the Company files provided to CSI - Prepared a preliminary NAV analysis and a liquidation analysis - Outlined selected strategic alternatives available to the Company - Prepared a preliminary valuation of the AIP / DDR put option - Inspected 53 properties (representing 77% of NOI, and 80% of total square footage) - Met with AIP management, Lend Lease and DDR [CHASE LOGO] 4 7 PROJECT FLEX - EXECUTIVE SUMMARY CSI MEETINGS AND SIGNIFICANT CORRESPONDENCE - -------------------------------------------------------------------------------- APRIL 7, 2000 [ ] Conference call with Bob Giles, Jack Little and Bryan Goolsby to discuss current situation and review potential conflicts of interests APRIL 9, 2000 [ ] Conference call with Bryan Goolsby and Jack Little to review the following: - AIP company history - AIP relationship with DDR and the existing equity purchase agreement executed between AIP and DDR - The engagement and scope of services provided by SSB in connection with their strategic alternatives mandate - Transaction record and process conducted to date in connection with the SSB mandate - Recent proposal made to the Special Committee by DDR/Lend Lease to acquire 100% of AIP in a cash transaction APRIL 12, 2000 [ ] Meeting with Bill Bricker to discuss, among other items, the following: - Potential conflicts of interests - Role of Special Committee and its advisors - Chase's role as advisor to the Special Committee (subject to agreement on terms) - DDR/Lend Lease proposal APRIL 20, 2000 [ ] Meeting with Charles Wolcott, Lew Friedland, Mark Simpson and other members of senior AIP management in Dallas to begin assessing the property portfolio APRIL 26, 2000 [ ] Meeting with Mark Bratt and Will Stevens of Lend Lease in Atlanta MAY 1, 2000 [ ] Meeting with Scott Wolstein of DDR in Cleveland [CHASE LOGO] 5 8 PROJECT FLEX - EXECUTIVE SUMMARY DISCUSSION ITEMS - -------------------------------------------------------------------------------- [ ] Summary of the DDR / Lend Lease Proposal [ ] Preliminary Portfolio Valuation [ ] Preliminary NAV Analysis [ ] Preliminary Liquidation Analysis [ ] DDR Put Option Considerations [ ] Preliminary Company Valuation [ ] Review of Lend Lease Discussions [ ] Review of DDR Discussions [ ] Review of Selected Strategic Alternatives [ ] Next Steps [CHASE LOGO] 6 9 PROJECT FLEX - EXECUTIVE SUMMARY STOCK PERFORMANCE GRAPH - -------------------------------------------------------------------------------- 4/28/00 CLOSING STOCK PRICE: $12.50 [GRAPH] Source: Bloomberg Financial Services BBREIT: Bloomberg REIT Index BBREINDU: Bloomberg Industrial REIT Index [CHASE LOGO] 7 10 PROJECT FLEX - EXECUTIVE SUMMARY VOLUME AT PRICE GRAPH - -------------------------------------------------------------------------------- LAST 6 MONTHS [BAR GRAPH] 10-10.99 12.0% 11-11.99 64.3% 12-12.99 23.7% 13-13.99 0.0% 14-14.99 0.0% 15-15.99 0.0% LAST 12 MONTHS [BAR GRAPH] 10-10.99 6.6% 11-11.99 36.9% 12-12.99 29.5% 13-13.99 15.3% 14-14.99 8.8% 15-15.99 3.0% [CHASE LOGO] 8 11 PROJECT FLEX - EXECUTIVE SUMMARY SHAREHOLDER SUMMARY - -------------------------------------------------------------------------------- BASIC CURRENT % OF TOTAL BASIC COMMON SHARES & COMMON SHARES & COMMON UNITS HELD COMMON UNITS HELD ----------------- ----------------- INSTITUTIONAL INVESTORS(1) Developers Diversified Realty Corporation 9,756,656 46.4% Morgan Stanley Dean Witter & Company 1,999,653 9.5% USAA Real Estate Company 1,680,086 8.0% ABKB/LaSalle Securities 1,502,578 7.1% Stichting Pension ABP 348,940 1.7% Algemeen Burgerlijk Pension 348,940 1.7% Kenisington Investment Group 333,500 1.6% Barclays Bank, PLC 250,969 1.2% ---------- ---- SUBTOTAL - MAJOR INSTITUTIONAL INVESTORS 16,221,322 77.2% EXECUTIVE OFFICERS AND DIRECTORS(2) Charles W. Wolcott 86,000 0.4% Lewis D. Friedland 23,383 0.1% Marc A. Simpson 20,650 0.1% David B. Warner 8,900 0.0% Other(3) 13,248 0.1% ---------- ---- ALL MANAGEMENT AND DIRECTORS 152,181 0.7% OTHER 4,644,497 22.1% NET OUTSTANDING SHARES(4) 21,018,000 100% ========== ==== (1) Source: Market Guide.com and Company Proxy (04/24/00) (2) Executable Options as of 12-31-99 : (Wolcott 250,000; Friedland 135,000; Simpson 70,000; Warner 70,000) (3) Executable Options as of 12-31-99 (Adams-1,000; Bricker-4,000; Gidel-1000; Giles-4000; Kraska-4000; Schoff-1000; Wolstein-1000) (4) Net Outstanding Shares are calculated using 21,094,000 shares outstanding less 166,000 Treasury Shares plus 90,000 OP Units. [CHASE LOGO] 9 12 SUMMARY OF DDR / LEND LEASE PROPOSAL [CHASE LOGO] 10 13 PROJECT FLEX - SUMMARY OF DDR / LEND LEASE PROPOSAL SUMMARY - -------------------------------------------------------------------------------- (in millions except per share amounts) DDR Adj. DDR Lend Lease Lend Lease(1) ------------ ------------- Lend Lease Portfolio $ 288.7 $ 288.7 DDR Portfolio 272.0 272.0 Manhattan Towers 44.0 50.0 ------------ ------------ GROSS REAL ESTATE ASSET VALUE $ 604.7 $ 610.7 Plus: Land(3) n/a n/a Net Debt & Working Capital Cash(2) $ 1.9 $ 1.9 Other Assets n/a n/a Debt(2) (318.1) (318.1) Other Liabilities n/a n/a ------------ ------------ Balance Sheet Adjustments $ (316.3) $ (316.3) NET ASSET VALUE $ 288.4 $ 294.4 Basic Shares Outstanding 21.018 21.018 NAV PER SHARE $ 13.72 $ 14.01 Transaction Expenses(2) 17.5 17.5 PROCEEDS TO SHAREHOLDERS $ 12.89 $ 13.18 (1) Assumes Manhattan Towers is removed from Lend Lease portfolio ($44 million deduct), and sold separately for $50 million (CSI est. value) (2) Source: AIP management (3) DDR's $272 million proposal includes land and net working capital [CHASE LOGO] 11 14 PRELIMINARY PORTFOLIO VALUATION [CHASE LOGO] 12 15 PROJECT FLEX - PRELIMINARY PORTFOLIO VALUATION CHASE METHODOLOGY - -------------------------------------------------------------------------------- [ ] Based on traditional real estate analysis [ ] Review of each asset with AIP management, focusing on key drivers of value: market strength, leasing effort, cap rates, etc. [ ] Discussions supplemented by a review of company-provided data: - Q1 Company financial performance - Year 2000 budgets - ARGUS cash flow projections - AIP Trust Managers meeting report - Rent rolls - Historical and recent leasing reports - Capital expenditure budget - Property manager provided data [ ] Reviewed real estate valuations completed by SSB and the Company [ ] Assessed key AIP markets for economic drivers, supply and demand dynamics, and market fundamentals which drive property appreciation and directly impact Chase's cap rate selections [ ] Evaluated Company acquisition data and identified over 125 property sales in key markets, which provided significant insight on investors' required returns, potential for appreciation and market depth [ ] Analyzed the portfolio on a regional basis to assure consistency within markets [ ] Completed property due diligence on approximately 81% of AIP's real estate value including: - 88% of California value - 57% of West Coast value - 100% of Texas and Norfolk/Washington value - Manhattan Towers and Apollo, two of the largest assets - Tamarac Square, one of the larger and more problematic retail properties [CHASE LOGO] 13 16 PROJECT FLEX - PRELIMINARY PORTFOLIO VALUATION CHASE METHODOLOGY (CONTINUED) - -------------------------------------------------------------------------------- [ ] Relied primarily on overall rate capitalization ("OAR") [ ] Utilized Company budgets to derive valuation - high correlation between the budget and actual results - extensive and detailed budgeting process [ ] Selected cap rates by focusing mainly on: asset quality, age, market strength (supply/demand dynamics), tenant quality, location, investor demand (primary vs. second tier cities) and re- leasing and re-tenanting risk [ ] Applied cap rates to AIP's budgeted year 2000 NOIs, adjusted upward by 2.0% to calculate an approximate 12M forward NOI [ ] Used actual management expenses (with a minimum charge 3.0%), and applied a $0.10 psf replacement reserve to each asset [ ] Considered properties with occupancy greater than 90% to be stabilized; leased properties with occupancy below 90% up to 94% if market-supported (with costs for re-tenanting deducted) [ ] Applied a 2% vacancy to all 100% occupied properties [ ] Used AIP's capital plan to evaluate each property's capital needs (buyer approach), with near term expense deducted from value [ ] Reviewed the Company's 10-year discounted cash flow ("DCF") projections and assumptions as a check against our direct capitalization valuation [ ] While CSI believes the projections are aggressive with respect to lease-up of vacant space and vacancy over the projection period, the projections show the potential for property appreciation and yield enhancement which CSI has factored into its OAR selection [ ] Utilized valuations provided by AIP management for several AIP-owned parcels of land [ ] Used our base case valuation but conducted a 5% sensitivity analysis to provide optimistic and conservative benchmarks. Major assets sensitivities are driven by key tenant renewal issues [CHASE LOGO] 14 17 PROJECT FLEX - PRELIMINARY PORTFOLIO VALUATION PORTFOLIO ATTRIBUTES - -------------------------------------------------------------------------------- [ ] A diverse portfolio of flex warehouse with a typical 70% office finish - Most of portfolio is located in dynamic growth markets such as Denver, Phoenix, Tampa, Austin, Houston and Dallas that are subject to overbuilding; although market fundamentals remain strong, further price appreciation may be limited - The remainder of the portfolio is located in second tier markets that have limited upside potential and have limited institutional investor appeal [ ] Typical building age is 15 years; although the properties appear to be reasonably well maintained, additional capital will be required to keep the portfolio competitive [ ] Significant rollover due to average remaining lease term of only 4.1 years - Short lease terms are labor intensive - Lead to increased re-tenanting expense - Increased market risk as markets become more competitive [ ] Average property size is relatively small averaging around 50,000 square feet - Smaller buildings provide good utility to singe tenant users - Tend to attract smaller less credit worthy tenants - Provide less flexibility for tenant expansion [ ] The portfolio has 631 tenants of which the top 25 represent 33% of the square footage and 43% of annual base rent - The two largest and most notable tenants, Cisco and TRW Inc. (11.5% of base rent), occupy the Apollo and Manhattan Towers, respectively - Tenancy for the flex portfolio is characterized by mostly non-rated regional companies [CHASE LOGO] 15 18 PROJECT FLEX - PRELIMINARY PORTFOLIO VALUATION COMPARATIVE DETAIL - ------------------------------------------------------------------------------- AIP DDR ADJ. DDR ($'s in millions) CHASE SSB(1) MGMT LEND LEASE LEND LEASE(2) ---------------- --------------- --------------- ----------------- ------------------- LEND LEASE ASSETS $287.3 - 317.6 $288.5 - $310.2 $316.9 $288.7 $288.7 DDR ASSETS 251.3 - 277.8 262.7 - 282.3 299.6 272.0 272.0 MANHATTAN TOWERS 47.5 - 52.5 37.1 - 39.9 49.9 44.0 50.0 - ------------------------- ---------------- --------------- --------------- ----------------- ------------------- GROSS REAL ESTATE VALUE $586.2 - 647.9 $588.1 - 632.4 $666.4 $604.7 $610.7 (1) Ranges created based on SSB's stated 6/99 NAV midpoints, using 37.5 bps movements upward and downward based on CSI's cap rates (2) Assumes Lend Lease removes Manhattan Towers for a $44 million deduct, and the Company then sells the asset for $50 million; DDR`s proposals include land (estimated value of $3.8 million) [CHASE LOGO] 16 19 PROJECT FLEX - PRELIMINARY PORTFOLIO VALUATION CHASE CONCLUSIONS - -------------------------------------------------------------------------------- [ ] Chase estimates the retail market value of AIP's portfolio to be approximately $586 to $648 million. Additionally, there is $3.8 million of excess land value. [ ] Alternatively, our midpoint valuation is $49 million and 7.4% lower than the Company's valuation; much of the valuation differential is attributable to first year Argus NOI which is $3.8 million greater than the CSI estimate; the difference in value is based on the following: - Aggressive lease-up of vacant space - Higher than historical occupancy in the Argus NOI (97% vs 93%) - CSI adjusts NOI and values for reserves, management fees, and near-term capital expense of $11.5 million - CSI capitalization rates are highly correlated with AIP's, the weighted average cap rate used to value the portfolio was 10.2% [ ] Continued strength in real estate market fundamentals and the corresponding increase in portfolio NOI over the past year is the primary reason why CSI's valuation exceeds that of SSB - Certain individual assets reflect significant differences (Manhattan Towers [CSI $50 million vs. SSB $38.4 million] and Tamarac Square [CSI $9.5 million vs. SSB $18 million]) [CHASE LOGO] 17 20 PROJECT FLEX - PRELIMINARY PORTFOLIO VALUATION CHASE CONCLUSIONS (CONTINUED) - -------------------------------------------------------------------------------- [ ] Our valuation of Tamarac Square is approximately 50% of the Company's and SSB's estimate of $18 million; given this asset's complexity and further downside potential, Chase believes this asset should not be marketed separately, and should remain as part of the DDR portfolio (even at a discounted price) [ ] Consideration should be given to marketing Manhattan Towers independently given the difference in product type and likely institutional investor appeal [CHASE LOGO] 18 21 PROJECT FLEX - PRELIMINARY PORTFOLIO VALUATION MANHATTAN OFFICE TOWERS - -------------------------------------------------------------------------------- [ ] The Manhattan Towers are two partially renovated six-story Class A office buildings that were constructed in mid 1980's; TRW, the major tenant, occupies all of one building and 3 floors of the other building or approximately 76% of the property; the property is well located and has excellent access [ ] The property is situated in the Manhattan Beach/El Segundo submarket which is one of the most popular and hottest markets in the South Bay; the overall vacancy rate is 12.7% with Class 'A' vacancy below 10% [ ] Recent leases in the market for small space users are reported to be in the $2.25 to $2.50 per square foot per month range with tenant improvement costs of approximately $5 per square foot on renewal space and $20 to $30 on new tenant leases [ ] Greatest uncertainty exists with the TRW lease that expires in 2002; if TRW vacates the space, major tenant improvement costs ($20 to $30 per sq. ft.) will be required to attract a new tenant to lease that space; no tenant improvements have been made to this space since it was occupied by Hughes Aerospace in the 1980's [CHASE LOGO] 19 22 PROJECT FLEX - PRELIMINARY PORTFOLIO VALUATION MANHATTAN OFFICE TOWERS - -------------------------------------------------------------------------------- [ ] The Company has solicited four Los Angeles brokers to analyze this asset and to provide their estimates of its potential market value; their results are as follows: BROKERAGE FIRM EST. VALUE (MMS) PRICE PSF ----------------------------------------------------------------------------------------------------- CB Commercial $54.0 $174 Eastdil 48.9 158 Insignia 65.1 210 Secured Capital 48.0 155 AVERAGE $54.0 $174 AIP Management $49.9 $162 Lend Lease Offer 44.0 143 Chase 50.0 162 [ ] The Insignia estimate assumes TRW renews and does not include any re-tenanting expense; the average broker's value excluding Insignia is $ 50.3 million which is directly in-line with our value of $50 million [CHASE LOGO] 20 23 PROJECT FLEX - PRELIMINARY PORTFOLIO VALUATION APOLLO - -------------------------------------------------------------------------------- [ ] The 3 story brick building was constructed in 1988 with a central core and two wings; the building is easily accessible from I-495 and Route 3, but is somewhat remote compared to the higher profile (but higher rent and more congested) areas along the Route 128 corridor; the space could be characterized as good quality; functional back-office space as opposed to what might be considered more typical corporate HQ space [ ] The property is single tenanted (Cisco Systems "CISCO") on a 5-year lease which commences in June 2000 at $12.50 psf triple net (combination renewal and expansion space); market rent is estimated to be approximately $13.50 psf [ ] Cisco is in the process of spending $6 million as a result of this renewal and expansion (the landlord contributed another $4 million); there is a high degree of uncertainty as to whether Cisco will renew at the end of their 5-year lease due to the possible development of a large corporate campus on land in Boxborough, about 12 miles west of Chelmsford on the I-495 corridor VALUE ESTIMATE PRICE PSF - ---------------------------------------------------------------------------------------------------------- Recent Sales NA $132 Recent Listings NA 130 Eastdil $36.0 124 Holliday Fenoglio Fowler 35.0 120 AVERAGE $37.0 $127 [ ] Based on the risks and costs associated with the non-renewal of Cisco as a tenant at the end of their five year lese term, a likely investor purchaser (vs. an owner-user) would estimate that the property value is between $36 million and $37 million [CHASE LOGO] 21 24 PROJECT FLEX - PRELIMINARY PORTFOLIO VALUATION TAMARAC SQUARE - -------------------------------------------------------------------------------- [ ] Tamarac Square Mall is an older enclosed two level mall and a strip convenience center; the property is well located but has suffered from low occupancy due to poor access, lack of critical mass, no anchors and poor circulation; tenants are primarily local or regional; however, the exceptions are the GAP, a Mann Theater and several restaurants on pad sites there are two strong regional malls in the trade area which are primarily responsible for the repositioning [ ] Performance at the mall is mixed; sales for the restaurants are good due to strong local demographics; some local businesses also do well, however, other tenants have percentage rent deals and there may be co-tenancy issues (management currently evaluating) [ ] The greatest uncertainty exists with the Mann's theater; after recent bankruptcy, this 6 screen theater was sold and remains open despite the year 2000 budget that shows closure in March; The lease runs until 2002; given consolidation in the theater industry and the undersized facility, a purchaser would likely assume that the theater closes and that a major retrofit is required; CSI understands that options are being considered, however, no firm alternatives have been identified; if the theater closes it could create significant additional tenant fallout at the mall [ ] In addition to re-tenanting expense, the mall requires a new roof ($400K); repairs were recently made to correct problems with slab movement [ ] Given the hybrid nature of the center and its performance the investment would not appeal to conventional mall or institutional investors; as an opportunistic investment the property would likely trade on adjusted budgeted net income of $1.18 million at a capitalization rate of 12% or $9.8 million; adjusting for capital expenses, suggests a price of $9.5 million; even at this price a protracted marketing period will probably be required [ ] The property was previously marketed and there was a firm offer at $11 million which failed to close due to the unresolved theater situation [CHASE LOGO] 22 25 PRELIMINARY NAV ANALYSIS [CHASE LOGO] 23 26 PROJECT FLEX - PRELIMINARY NAV ANALYSIS CSI CALCULATION - -------------------------------------------------------------------------------- (in millions except per share amounts) CSI VALUATIONS(1) OFFERS -------------------------------- ------------------------- CSI CSI CSI DDR ADJ. DDR (LOW) (MIDPOINT) (HIGH) LEND LEASE LEND LEASE(2) -------- -------- -------- ---------- ------------- Lend Lease Portfolio $ 287.3 $ 302.5 $ 317.6 $ 288.7 $ 288.7 DDR Portfolio 251.3 264.6 277.8 272.0 272.0 Manhattan Towers 47.5 50.0 52.5 44.0 50.0 -------- -------- -------- -------- -------- GROSS REAL ESTATE ASSET VALUE $ 586.2 $ 617.0 $ 647.9 $ 604.7 $ 610.7 Plus: Land(3,4) $ 3.8 $ 3.8 $ 3.8 n/a n/a Net Debt & Working Capital Cash(3) $ 1.9 $ 1.9 $ 1.9 $ 1.9 $ 1.9 Other Assets n/a n/a n/a n/a n/a Debt (318.1) (318.1) (318.1) (318.1) (318.1) Other Liabilities n/a n/a n/a n/a n/a -------- -------- -------- -------- -------- Balance Sheet Adjustments $ (316.3) $ (316.3) $ (316.3) $ (316.3) $ (316.3) NET ASSET VALUE $ 273.8 $ 304.6 $ 335.5 $ 288.4 $ 294.4 Basic Shares Outstanding 21.018 21.018 21.018 21.018 21.018 NAV PER SHARE $ 13.03 $ 14.49 $ 15.96 $ 13.72 $ 14.01 Transaction Expenses $ 17.5 $ 17.5 $ 17.5 $ 17.5 $ 17.5 PROCEEDS TO SHAREHOLDERS $ 12.19 $ 13.66 $ 15.13 $ 12.89 $ 13.18 (1) CSI's low and high valuations are based on a 5% premium and 5% discount to CSI's midpoint value (2) Assumes Manhattan Towers is removed from the Lend Lease portfolio for a deduct of $44 million, and sold separately for $50 million (3) Source: AIP management (4) DDR's $272 million proposal includes land and net working capital [CHASE LOGO] 24 27 PROJECT FLEX-PRELIMINARY NAV ANALYSIS COMPARATIVE NAV SUMMARY - -------------------------------------------------------------------------------- [BAR GRAPH] CSI NAV $ 15.13 $ 12.19 Analysis CSI Liquidation $ 13.86 $ 11.20 Analysis SSB NAV $ 14.60 $ 12.50 Analysis SSB Liquidation $ 14.05 $ 11.43 Analysis DDR / Lend Lease / MT $13.18 DDR / Lend Lease $12.89 Note: Assumes 21.018 million shares outstanding and Company net debt of $318.1 million and $17.5 million in transaction expenses [CHASE LOGO] 25 28 PRELIMINARY LIQUIDATION ANALYSIS [CHASE LOGO] 26 29 PROJECT FLEX - PRELIMINARY LIQUIDATION ANALYSIS METHODOLOGY AND ASSUMPTIONS - -------------------------------------------------------------------------------- [ ] AIP sells all of its assets (for cash) over a two year period [ ] The properties are broadly marketed, with investors invited to bid on individual assets or pools of assets [ ] Current estimated asset values are assumed to grow at an annual rate of 3.0% [ ] Transaction costs associated with the asset sales (e.g., legal, sales commissions, transfer taxes, etc.) are incurred throughout the liquidation process [ ] Existing debts are repaid using cash balances and asset sale proceeds [ ] Excess sale proceeds (after payment of required debt repayments) are distributed to shareholders as special dividends [ ] Operating cash flow (net of all capital expenditures and leasing costs) is distributed to shareholders on a quarterly basis [ ] As the Company reduces in size, severance costs are incurred, but the Company's G&A expense reduces periodically [ ] Working capital balances are settled, and the Company is dissolved, following the completion of the asset liquidations [CHASE LOGO] 27 30 PROJECT FLEX - PRELIMINARY LIQUIDATION ANALYSIS SCENARIO #1 - -------------------------------------------------------------------------------- ASSETS SOLD BASED ON A 10.7% CAPITALIZATION RATE PROJECTED FINANCIAL INFORMATION FOR THREE MONTHS ENDED ------------------------------------------------------------------------------------------ 09/30/00 12/31/00 03/31/01 06/30/01 09/30/01 12/31/01 03/31/02 -------- -------- -------- -------- -------- -------- -------- (in thousands except per share data) Net Operating Income(1) $ 15,596 $ 15,596 $ 12,477 $ 7,798 $ 4,679 $ 3,119 $ 1,560 General & Administrative(2) 1,014 1,014 811 507 304 203 101 -------- -------- -------- -------- -------- -------- -------- EBITDA $ 14,582 $ 14,582 $ 11,666 $ 7,291 $ 4,375 $ 2,916 $ 1,458 Interest Expense(3) 5,549 5,527 4,403 2,741 1,638 1,087 542 CapEx, TI's and Leasing(4) 2,028 2,028 1,622 1,014 608 406 203 Principal Amortization(4) 1,244 1,244 995 622 373 249 124 -------- -------- -------- -------- -------- -------- -------- FREE CASH FLOW $ 5,762 $ 5,784 $ 4,645 $ 2,914 $ 1,755 $ 1,175 $ 590 Shares & OPUs Outstanding 21,018 21,018 21,018 21,018 21,018 21,018 21,018 Free Cash Flow per Share $ 0.27 $ 0.28 $ 0.22 $ 0.14 $ 0.08 $ 0.06 $ 0.03 ASSET SALES @ 10.7% CAP RATE $ 0 $116,607 $174,911 $116,607 $ 58,304 $ 58,304 $ 29,152 Less: Debt of Assets Sold(4) 0 61,709 92,191 61,212 30,481 30,357 15,116 Closing Costs(5) 0 408 612 408 204 204 102 Sales Commissions(6) 0 2,915 4,373 2,915 1,458 1,458 729 Prepayment Penalties(7) 0 0 1,100 0 1,500 0 2,300 Severance Costs(7) 0 0 1,250 1,250 0 1,250 0 Legal and Other(7) 0 0 750 750 0 750 0 -------- -------- -------- -------- -------- -------- -------- Total Liquidation Proceeds $ 0 $ 51,575 $ 74,635 $ 50,072 $ 24,661 $ 24,285 $ 10,905 Liquidation Proceeds/Share $ 0.00 $ 2.45 $ 3.55 $ 2.38 $ 1.17 $ 1.16 $ 0.52 TOTAL DISTRIBUTIONS $ 5,762 $ 57,359 $ 79,281 $ 52,987 $ 26,416 $ 25,460 $ 11,494 TOTAL DISTRIBUTIONS/SHARE $ 0.27 $ 2.73 $ 3.77 $ 2.52 $ 1.26 $ 1.21 $ 0.55 NPV@ ----------------------------------- 06/30/02 TOTAL 13.0% 14.0% 15.0% -------- -------- -------- -------- -------- (in thousands except per share data) Net Operating Income(1) $ 780 $ 61,605 $ 44,440 $ 43,468 $ 42,533 General & Administrative(2) 51 4,004 2,889 2,825 2,765 -------- -------- -------- -------- -------- EBITDA $ 729 $ 57,601 $ 41,551 $ 40,643 $ 39,769 Interest Expense(3) 270 21,757 15,715 15,372 15,043 CapEx, TI's and Leasing(4) 101 8,009 5,777 5,651 5,529 Principal Amortization(4) 62 4,914 3,545 3,468 3,393 -------- -------- -------- -------- -------- FREE CASH FLOW $ 296 $ 22,921 $ 16,515 $ 16,152 $ 15,804 Shares & OPUs Outstanding 21,018 21,018 21,018 21,018 21,018 Free Cash Flow per Share $ 0.01 $ 1.09 $ 0.79 $ 0.77 $ 0.75 ASSET SALES @ 10.7% CAP RATE $ 29,152 $583,037 $367,067 $355,540 $344,532 Less: Debt of Assets Sold(4) 15,054 306,121 192,976 186,932 181,159 Closing Costs(5) 102 2,041 1,285 1,244 1,206 Sales Commissions(6) 729 14,576 9,177 8,888 8,613 Prepayment Penalties(7) 0 4,900 2,554 2,441 2,334 Severance Costs(7) 1,250 5,000 2,704 2,591 2,486 Legal and Other(7) 750 3,000 1,622 1,555 1,491 -------- -------- -------- -------- -------- Total Liquidation Proceeds $ 11,267 $247,400 $156,750 $151,888 $147,243 Liquidation Proceeds/Share $ 0.54 $ 11.77 $ 7.46 $ 7.23 $ 7.01 TOTAL DISTRIBUTIONS $ 11,563 $270,321 $239,704 $237,562 $235,448 TOTAL DISTRIBUTIONS/SHARE $ 0.55 $ 12.86 $ 11.40 $ 11.30 $ 11.20 Notes 1 Based on CSI estimate oif current NOI 2 Assumed to be 6.5% of NOI 3 Assumed average interest rate of 7.2% 4 Chase estimates 5 Assumed to be 0.35% of assets sold 6 Assumed to be 2.5% of assets sold 7 Chase estimates [CHASE LOGO] 28 31 PROJECT FLEX - PRELIMINARY LIQUIDATION ANALYSIS SCENARIO #2 - -------------------------------------------------------------------------------- ASSETS SOLD BASED ON A 9.7% CAPITALIZATION RATE PROJECTED FINANCIAL INFORMATION FOR THREE MONTHS ENDED ------------------------------------------------------------------------------------------- 09/30/00 12/31/00 03/31/01 06/30/01 09/30/01 12/31/01 03/31/02 -------- -------- -------- -------- -------- -------- -------- (in thousands except per share data) Net Operating Income(1) $ 15,596 $ 15,596 $ 12,477 $ 7,798 $ 4,679 $ 3,119 $ 1,560 General & Administrative(2) 1,014 1,014 811 507 304 203 101 -------- -------- -------- -------- -------- -------- -------- EBITDA $ 14,582 $ 14,582 $ 11,666 $ 7,291 $ 4,375 $ 2,916 $ 1,458 Interest Expense(3) 5,549 5,527 4,403 2,741 1,638 1,087 542 CapEx, TI's and Leasing(4) 2,028 2,028 1,622 1,014 608 406 203 Principal Amortization(4) 1,244 1,244 995 622 373 249 124 -------- -------- -------- -------- -------- -------- -------- FREE CASH FLOW $ 5,762 $ 5,784 $ 4,645 $ 2,914 $ 1,755 $ 1,175 $ 590 Shares & OPUs Outstanding 21,018 21,018 21,018 21,018 21,018 21,018 21,018 Free Cash Flow per Share $ 0.27 $ 0.28 $ 0.22 $ 0.14 $ 0.08 $ 0.06 $ 0.03 ASSET SALES @ 9.7% CAP RATE $ 0 $128,629 $192,943 $128,629 $ 64,314 $ 64,314 $ 32,157 Less: Debt of Assets Sold(4) 0 61,709 92,191 61,212 30,481 30,357 15,116 Closing Costs(5) 0 450 675 450 225 225 113 Sales Commissions(6) 0 3,216 4,824 3,216 1,608 1,608 804 Prepayment Penalties(7) 0 0 1,100 0 1,500 0 2,300 Severance Costs(7) 0 0 1,250 1,250 0 1,250 0 Legal and Other(7) 0 0 750 750 0 750 0 -------- -------- -------- -------- -------- -------- -------- Total Liquidation Proceeds $ 0 $ 63,254 $ 92,154 $ 61,751 $ 30,500 $ 30,124 $ 13,824 Liquidation Proceeds/Share $ 0.00 $ 3.01 $ 4.38 $ 2.94 $ 1.45 $ 1.43 $ 0.66 TOTAL DISTRIBUTIONS $ 5,762 $ 69,038 $ 96,799 $ 64,666 $ 32,255 $ 31,299 $ 14,414 TOTAL DISTRIBUTIONS/SHARE $ 0.27 $ 3.28 $ 4.61 $ 3.08 $ 1.53 $ 1.49 $ 0.69 PROJECTED FINANCIAL INFORMATION FOR THREE MONTHS ENDED NPV @ ------------------------------------------------------ ------------------------------------ 06/30/02 TOTAL 13.0% 14.0% 15.0% -------- -------- -------- -------- -------- (in thousands except per share data) Net Operating Income(1) $ 780 $ 61,605 $ 44,440 $ 43,468 $ 42,533 General & Administrative(2) 51 4,004 2,889 2,825 2,765 -------- -------- -------- -------- -------- EBITDA $ 729 $ 57,601 $ 41,551 $ 40,643 $ 39,769 Interest Expense(3) 270 21,757 15,715 15,372 15,043 CapEx, TI's and Leasing(4) 101 8,009 5,777 5,651 5,529 Principal Amortization(4) 62 4,914 3,545 3,468 3,393 -------- -------- -------- -------- -------- FREE CASH FLOW $ 296 $ 22,921 $ 16,515 $ 16,152 $ 15,804 Shares & OPUs Outstanding 21,018 21,018 21,018 21,018 21,018 Free Cash Flow per Share $ 0.01 $ 1.09 $ 0.79 $ 0.77 $ 0.75 ASSET SALES @ 9.7% CAP RATE $ 32,157 $643,144 $404,909 $392,194 $380,051 Less: Debt of Assets Sold(4) 15,054 306,121 192,976 186,932 181,159 Closing Costs(5) 113 2,251 1,417 1,373 1,330 Sales Commissions(6) 804 16,079 10,123 9,805 9,501 Prepayment Penalties(7) 0 4,900 2,554 2,441 2,334 Severance Costs(7) 1,250 5,000 2,704 2,591 2,486 Legal and Other(7) 750 3,000 1,622 1,555 1,491 -------- -------- -------- -------- -------- Total Liquidation Proceeds $ 14,187 $305,794 $193,513 $187,497 $181,750 Liquidation Proceeds/Share $ 0.67 $ 14.55 $ 9.21 $ 8.92 $ 8.65 TOTAL DISTRIBUTIONS $ 14,483 $328,715 $291,241 $288,621 $286,035 TOTAL DISTRIBUTIONS/SHARE $ 0.69 $ 15.64 $ 13.86 $ 13.73 $ 13.61 Notes 1 Based on Management Estimates to 12/31/00 and 3.0% growth per annum thereafter 2 Assumed to be 6.5% of NOI 3 Assumed average interest rate of 7.2% 4 Chase estimates 5 Assumed to be 0.35% of assets sold 6 Assumed to be 2.5% of assets sold 7 Chase estimates [CHASE LOGO] 29 32 DDR PUT OPTION CONSIDERATIONS [CHASE LOGO] 30 33 PROJECT FLEX - DDR PUT OPTION CONSIDERATIONS GENERAL DESCRIPTION - -------------------------------------------------------------------------------- COMMON PREFERRED PRICE/ TOTAL DDR DDR EQUITY FUNDING SHARES SHARES SHARE INVESTMENT --------- --------- --------- ---------- (in MMs except per share data) STAGE I AND II Common 7.43 -- $ 15.50 $ 115.23 STAGE III - TRANCHE A Common 2.22 -- $ 15.02 $ 33.38 COMMON(1) 1.53 -- 15.35 23.53 PREFERRED(1) -- 3.11 13.86 43.09 --------- --------- --------- --------- Subtotal 3.76 3.11 $ 14.57 $ 100.00 STAGE III - TRANCHE B PREFERRED(1) -- 7.21 13.86 $ 100.00 Total Funded 9.66 -- $ 15.39 $ 148.61 TOTAL REMAINING 1.53 10.32 14.05 166.62 --------- --------- --------- --------- GRAND TOTAL 11.19 10.32 $ 14.65 $ 315.23 (1) Assumes AIP 10-day average share price of $12.00 [ ] First stage ($34.2) and Second stage ($81.0) - Funded with common stock at $15.50 per share [ ] Third stage ($200) -- Tranche A and Tranche B - Funded with common stock at $15.50 per share (until DDR reaches 49.9% ownership limit) - Funded with preferred stock at $14.00 per share (up to $100 within Stage III) - Thereafter, funded with preferred stock at $14.00 so long as certain requirements are met: o DDR's share price must be above $18.00 per share o DDR's aggregate investment cannot exceed 10% of DDR's market capitalization [ ] DDR's funding price per share is adjusted downward if AIP's average closing share price for the 10 days preceding the date on which AIP exercises its put option is below $12.12 (see next page) [ ] If any portion of Tranche A is not fully funded prior to 11/20/00, then the option expires and terminates (including the $100 million in Tranche B) [CHASE LOGO] 31 34 PROJECT FLEX - DDR PUT OPTION CONSIDERATIONS VALUATION METHODOLOGY DISCUSSION - -------------------------------------------------------------------------------- [ ] Given the number of variables that can affect the put option, its valuation is far from an exact science [ ] The traditional theoretical valuation of the DDR put option should be discounted - Because there is no secondary market (i.e., no buyers) for this option, academia would conclude it has "zero" value - except to AIP under certain circumstances - The Black-Sholes pricing model is less applicable given the lack of liquidity - Put option has contingency clauses and structure not applicable to "option pricing theory" - Put option cannot be hedged [ ] However, the put option has value to AIP in so far as: - Provides access to equity capital for strategic investment purposes - Not subject to public offering discount (3% - 5%) [ ] Because the Put Option can only be exercised to make acquisitions, it only has value in scenarios where the Company continues as an ongoing concern [ ] In order for the put option to have meaningful value it must be exercised in a manner that creates additional intrinsic value for AIP shareholders - Issued above or close to NAV (e.g., 95%) - Assumes new investment has potential to "re-coup" any discount to NAV issuance [ ] Bigger liability for DDR than value to AIP [CHASE LOGO] 32 35 PROJECT FLEX - DDR PUT OPTION CONSIDERATIONS VALUATION METHODOLOGY DISCUSSION (CONTINUED) - -------------------------------------------------------------------------------- [ ] CSI has theoretically considered two alternative methodologies for valuing the put option: - Value relative to AIP's market value - Value relative to AIP's Net Asset Value (NAV) [ ] The appropriate methodology appears to be the NAV methodology; the decision to issue shares should be based upon an issue price equal to or above net asset value [ ] A decision to issue stock based upon the issue price exceeding the current market price may be inappropriate, particularly in the current depressed equity market for REITs [ ] In a status quo scenario, AIP's share price would likely gravitate towards its peer group (or perhaps lower) due to: - Liquidity issues - Lack of sponsorship - Aborted strategic alternatives review (market may be expecting a value enhancing deal) - High/moderate leverage [ ] CSI used the following methodology to estimate AIP's share price following a public announcement that it continue operating as an ongoing concern: PEER GROUP RELEVANT EST. AIP AVERAGE AIP FIGURE SHARE PRICE ---------- ---------- ----------- 2000E Price / FFO 7.6x 1.49(1) $ 11.36 Enterprise Value / 2000 EBITDA 9.5x 57.1(2) 11.25 NAV Premium / (Discount) (14.7)% 14.49(3) 12.36 -------- MEAN EST. SHARE PRICE $ 11.66 (1) Est. AIP 2000 FFO per share (2) Est. AIP 2000 EBITDA (3) Est. AIP NAV (Chase midpoint) [CHASE LOGO] 33 36 PROJECT FLEX - DDR PUT OPTION CONSIDERATIONS VALUATION RELATIVE TO AIP'S MARKET VALUE - ------------------------------------------------------------------------------- THIS METHODOLOGY MORE ACCURATELY REFLECTS DDR'S POTENTIAL LIABILITY THAN THE VALUE TO AIP SHAREHOLDERS [ ] This methodology assumes that the value of the put is equal to the issue price less the current market price (example: issue 100 shares at $15.50, $12.50 assumed current share price, ($15.50-$12.50) x 100 = $300 value) [ ] Assuming DDR funds the remaining unconditional common shares and unconditional preferred shares, the gross value of the put ranges from a low of $2.3 million based upon a $14.00 AIP share price to a high of $10.1 million based upon a $10.00 AIP share price [ ] Placing a value on the $100 million of conditional preferred shares is questionable, given the variables including DDR's stock price, DDR's market cap and time value [CHASE LOGO] 34 37 PROJECT FLEX - DDR PUT OPTION CONSIDERATIONS INCREMENTAL VALUE OVER AIP MARKET VALUE - -------------------------------------------------------------------------------- COMMON SHARES Assumed AIP share price $ 14.00 $ 13.00 $ 12.00 $ 11.00 $ 10.00 Put option adjustment denominator 12.12 12.12 12.12 12.12 12.12 ------- ------- ------- ------- ------- Adjustment ratio 100.0% 100.0% 99.0% 90.8% 82.5% Funding price per share 15.50 15.50 15.50 15.50 15.50 ------- ------- ------- ------- ------- Adjusted DDR funding price per share $ 15.50 $ 15.50 $ 15.35 $ 14.07 $ 12.79 Assumed AIP share price $ 14.00 $ 13.00 $ 12.00 $ 11.00 $ 10.00 ------- ------- ------- ------- ------- Incremental value per share $ 1.50 $ 2.50 $ 3.35 $ 3.07 $ 2.79 Shares put to DDR (MMs) 1.53 1.53 1.53 1.53 1.53 Estimated Value over Current Share Price (MMs) $ 2.30 $ 3.83 $ 5.13 $ 4.70 $ 4.28 PREFERRED SHARES (STAGE 3A) Assumed AIP share price $ 14.00 $ 13.00 $ 12.00 $ 11.00 $ 10.00 Put option adjustment denominator 12.12 12.12 12.12 12.12 12.12 ------- ------- ------- ------- ------- Adjustment ratio 100.0% 100.0% 99.0% 90.8% 82.5% Funding price per share 14.00 14.00 14.00 14.00 14.00 ------- ------- ------- ------- ------- Adjusted DDR funding price per share $ 14.00 $ 14.00 $ 13.86 $ 12.71 $ 11.55 Assumed AIP share price $ 14.00 $ 13.00 $ 12.00 $ 11.00 $ 10.00 ------- ------- ------- ------- ------- Incremental value per share $ -- $ 1.00 $ 1.86 $ 1.71 $ 1.55 Shares put to DDR (MMs) 3.08 3.08 3.11 3.39 3.73 Estimated Value over Current Share Price (MMs) $ -- $ 3.08 $ 5.79 $ 5.79 $ 5.79 Total Shares put to DDR (MMs) 4.61 4.61 4.64 4.92 5.26 Total Est. Value over Current Share Price (MMs) $ 2.30 $ 6.91 $ 10.92 $ 10.49 $ 10.06 [CHASE LOGO] 35 38 PROJECT FLEX - DDR PUT OPTION CONSIDERATIONS VALUATION RELATIVE TO AIP'S NAV - -------------------------------------------------------------------------------- [ ] Assuming a $11.66 post-announcement share price and a $14.49 NAV for AIP (Chase midpoint before transaction expenses), we have calculated the incremental value of the DDR put option as follows: Estimated AIP share price................................................ $11.66 Divided by............................................................... $12.12 -------- DDR adjustment factor.................................................... 96.20% COMMON PREFERRED-A PREFERRED-B DDR common acquisition price per share................................... $15.50 $14.00 $14.00 DDR adjustment factor.................................................... 96.20% 96.20% 96.20% --------- -------- ------- Adjusted DDR acquisition price per share................................. $14.91 $13.47 $13.47 95% of Chase's NAV (midpoint) per share(1)............................... $13.77 $13.77 $13.77 Adjusted DDR acquisition price per share................................. 14.91 13.47 13.47 --------- -------- ------- Incremental value per share.............................................. $1.14 $0.00 $0.00 MMs of shares put to DDR................................................. 1.53 3.11 7.21 INCREMENTAL VALUE TO AIP (MMS) $1.75 $0.00 $0.00 (1) 95% assumption based on the lack of a public underwriting discount, the potential for accretive investment opportunities, etc. [CHASE LOGO] 36 39 PROJECT FLEX - DDR PUT OPTION CONSIDERATIONS INCREMENTAL VALUE OVER AIP'S NAV - -------------------------------------------------------------------------------- COMMON SHARES Assumed AIP share price $ 14.00 $ 14.00 $ 14.00 $ 13.00 $ 13.00 Put option adjustment denominator 12.12 12.12 12.12 12.12 12.12 ------- ------- ------- ------- ------- Adjustment ratio 100.0% 100.0% 100.0% 100.0% 100.0% Funding price per share 15.50 15.50 15.50 15.50 15.50 ------- ------- ------- ------- ------- Adjusted DDR funding price per share $ 15.50 $ 15.50 $ 15.50 $ 15.50 $ 15.50 Chase NAV per share (high-mid-low) $ 15.96 $ 14.49 $ 13.03 $ 15.96 $ 14.49 ------- ------- ------- ------- ------- Incremental value per share $ (0.46) $ 1.01 $ 2.47 $ (0.46) $ 1.01 Shares put to DDR (MMs) 1.53 1.53 1.53 1.53 1.53 Estimated Value over NAV (MMs) $ -- $ 1.55 $ 3.79 $ -- $ 1.55 PREFERRED SHARES (STAGE 3A) Assumed AIP share price $ 14.00 $ 14.00 $ 14.00 $ 13.00 $ 13.00 Put option adjustment denominator 12.12 12.12 12.12 12.12 12.12 ------- ------- ------- ------- ------- Adjustment ratio 100.0% 100.0% 100.0% 100.0% 100.0% Funding price per share 14.00 14.00 14.00 14.00 14.00 ------- ------- ------- ------- ------- Adjusted DDR funding price per share $ 14.00 $ 14.00 $ 14.00 $ 14.00 $ 14.00 Chase NAV per share (high-mid-low) $ 15.96 $ 14.49 $ 13.03 $ 15.96 $ 14.49 ------- ------- ------- ------- ------- Incremental value per share $ (1.96) $ (0.49) $ 0.97 $ (1.96) $ (0.49) Shares put to DDR (MMs) 3.08 3.08 3.08 3.08 3.08 Estimated Value over NAV (MMs) $ -- $ -- $ 2.99 $ -- $ -- PREFERRED SHARES (STAGE 3B) Assumed AIP share price $ 14.00 $ 14.00 $ 14.00 $ 13.00 $ 13.00 Put option adjustment denominator 12.12 12.12 12.12 12.12 12.12 ------- ------- ------- ------- ------- Adjustment ratio 100.0% 100.0% 100.0% 100.0% 100.0% Funding price per share 14.00 14.00 14.00 14.00 14.00 ------- ------- ------- ------- ------- Adjusted DDR funding price per share $ 14.00 $ 14.00 $ 14.00 $ 14.00 $ 14.00 Chase NAV per share (high-mid-low) $ 15.96 $ 14.49 $ 13.03 $ 15.96 $ 14.49 ------- ------- ------- ------- ------- Incremental value per share $ (1.96) $ (0.49) $ 0.97 $ (1.96) $ (0.49) Shares put to DDR (MMs) 7.14 7.14 7.14 7.14 7.14 Estimated Value over NAV (MMs) $ -- $ -- $ 6.93 $ -- $ -- Total Shares put to DDR (MMs) 11.75 11.75 11.75 11.75 11.75 Total Est. Value over NAV (MMs) $ -- $ 1.55 $ 13.70 $ -- $ 1.55 15% NPV over 6 months $ -- $ 1.44 $ 12.72 $ -- $ 1.44 15% NPV over 12 months -- 1.33 11.80 -- 1.33 15% NPV over 18 months -- 1.24 10.96 -- 1.24 15% NPV over 24 months -- 1.15 10.17 -- 1.15 15% NPV over 30 months -- 1.07 9.44 -- 1.07 15% NPV over 36 months -- 0.99 8.76 -- 0.99 COMMON SHARES Assumed AIP share price $ 13.00 $ 12.00 $ 12.00 $ 12.00 $ 11.00 Put option adjustment denominator 12.12 12.12 12.12 12.12 12.12 ------- ------- ------- ------- ------- Adjustment ratio 100.0% 99.0% 99.0% 99.0% 90.8% Funding price per share 15.50 15.50 15.50 15.50 15.50 ------- ------- ------- ------- ------- Adjusted DDR funding price per share $ 15.50 $ 15.35 $ 15.35 $ 15.35 $ 14.07 Chase NAV per share (high-mid-low) $ 13.03 $ 15.96 $ 14.49 $ 13.03 $ 15.96 ------- ------- ------- ------- ------- Incremental value per share $ 2.47 $ (0.61) $ 0.86 $ 2.32 $ (1.89) Shares put to DDR (MMs) 1.53 1.53 1.53 1.53 1.53 Estimated Value over NAV (MMs) $ 3.79 $ -- $ 1.31 $ 3.55 $ -- PREFERRED SHARES (STAGE 3A) Assumed AIP share price $ 13.00 $ 12.00 $ 12.00 $ 12.00 $ 11.00 Put option adjustment denominator 12.12 12.12 12.12 12.12 12.12 ------- ------- ------- ------- ------- Adjustment ratio 100.0% 99.0% 99.0% 99.0% 90.8% Funding price per share 14.00 14.00 14.00 14.00 14.00 ------- ------- ------- ------- ------- Adjusted DDR funding price per share $ 14.00 $ 13.86 $ 13.86 $ 13.86 $ 12.71 Chase NAV per share (high-mid-low) $ 13.03 $ 15.96 $ 14.49 $ 13.03 $ 15.96 ------- ------- ------- ------- ------- Incremental value per share $ 0.97 $ (2.10) $ (0.63) $ 0.83 $ (3.25) Shares put to DDR (MMs) 3.08 3.11 3.11 3.11 3.39 Estimated Value over NAV (MMs) $ 2.99 $ -- $ -- $ 2.58 $ -- PREFERRED SHARES (STAGE 3B) Assumed AIP share price $ 13.00 $ 12.00 $ 12.00 $ 12.00 $ 11.00 Put option adjustment denominator 12.12 12.12 12.12 12.12 12.12 ------- ------- ------- ------- ------- Adjustment ratio 100.0% 99.0% 99.0% 99.0% 90.8% Funding price per share 14.00 14.00 14.00 14.00 14.00 ------- ------- ------- ------- ------- Adjusted DDR funding price per share $ 14.00 $ 13.86 $ 13.86 $ 13.86 $ 12.71 Chase NAV per share (high-mid-low) $ 13.03 $ 15.96 $ 14.49 $ 13.03 $ 15.96 ------- ------- ------- ------- ------- Incremental value per share $ 0.97 $ (2.10) $ (0.63) $ 0.83 $ (3.25) Shares put to DDR (MMs) 7.14 7.21 7.21 7.21 7.87 Estimated Value over NAV (MMs) $ 6.93 $ -- $ -- $ 6.00 $ -- Total Shares put to DDR (MMs) 11.75 11.86 11.86 11.86 12.79 Total Est. Value over NAV (MMs) $ 13.70 $ -- $ 1.31 $ 12.13 $ -- 15% NPV over 6 months $ 12.72 $ -- $ 1.22 $ 11.26 $ -- 15% NPV over 12 months 11.80 -- 1.13 10.45 -- 15% NPV over 18 months 10.96 -- 1.05 9.70 -- 15% NPV over 24 months 10.17 -- 0.97 9.01 -- 15% NPV over 30 months 9.44 -- 0.90 8.36 -- 15% NPV over 36 months 8.76 -- 0.84 7.76 -- COMMON SHARES Assumed AIP share price $ 11.00 $ 11.00 $ 10.00 $ 10.00 $ 10.00 Put option adjustment denominator 12.12 12.12 12.12 12.12 12.12 ------- ------- ------- ------- ------- Adjustment ratio 90.8% 90.8% 82.5% 82.5% 82.5% Funding price per share 15.50 15.50 15.50 15.50 15.50 ------- ------- ------- ------- ------- Adjusted DDR funding price per share $ 14.07 $ 14.07 $ 12.79 $ 12.79 $ 12.79 Chase NAV per share (high-mid-low) $ 14.49 $ 13.03 $ 15.96 $ 14.49 $ 13.03 ------- ------- ------- ------- ------- Incremental value per share $ (0.42) $ 1.04 $ (3.17) $ (1.70) $ (0.24) Shares put to DDR (MMs) 1.53 1.53 1.53 1.53 1.53 Estimated Value over NAV (MMs) $ -- $ 1.59 $ -- $ -- $ -- PREFERRED SHARES (STAGE 3A) Assumed AIP share price $ 11.00 $ 11.00 $ 10.00 $ 10.00 $ 10.00 Put option adjustment denominator 12.12 12.12 12.12 12.12 12.12 ------- ------- ------- ------- ------- Adjustment ratio 90.8% 90.8% 82.5% 82.5% 82.5% Funding price per share 14.00 14.00 14.00 14.00 14.00 ------- ------- ------- ------- ------- Adjusted DDR funding price per share $ 12.71 $ 12.71 $ 11.55 $ 11.55 $ 11.55 Chase NAV per share (high-mid-low) $ 14.49 $ 13.03 $ 15.96 $ 14.49 $ 13.03 ------- ------- ------- ------- ------- Incremental value per share $ (1.78) $ (0.32) $ (4.41) $ (2.94) $ (1.48) Shares put to DDR (MMs) 3.39 3.39 3.73 3.73 3.73 Estimated Value over NAV (MMs) $ -- $ -- $ -- $ -- $ -- PREFERRED SHARES (STAGE 3B) Assumed AIP share price $ 11.00 $ 11.00 $ 10.00 $ 10.00 $ 10.00 Put option adjustment denominator 12.12 12.12 12.12 12.12 12.12 ------- ------- ------- ------- ------- Adjustment ratio 90.8% 90.8% 82.5% 82.5% 82.5% Funding price per share 14.00 14.00 14.00 14.00 14.00 ------- ------- ------- ------- ------- Adjusted DDR funding price per share $ 12.71 $ 12.71 $ 11.55 $ 11.55 $ 11.55 Chase NAV per share (high-mid-low) $ 14.49 $ 13.03 $ 15.96 $ 14.49 $ 13.03 ------- ------- ------- ------- ------- Incremental value per share $ (1.78) $ (0.32) $ (4.41) $ (2.94) $ (1.48) Shares put to DDR (MMs) 7.87 7.87 8.66 8.66 8.66 Estimated Value over NAV (MMs) $ -- $ -- $ -- $ -- $ -- Total Shares put to DDR (MMs) 12.79 12.79 13.92 13.92 13.92 Total Est. Value over NAV (MMs) $ -- $ 1.59 $ -- $ -- $ -- 15% NPV over 6 months $ -- $ 1.48 $ -- $ -- $ -- 15% NPV over 12 months -- 1.37 -- -- -- 15% NPV over 18 months -- 1.27 -- -- -- 15% NPV over 24 months -- 1.18 -- -- -- 15% NPV over 30 months -- 1.10 -- -- -- 15% NPV over 36 months -- 1.02 -- -- -- [CHASE LOGO] 37 40 PRELIMINARY COMPANY VALUATION [CHASE LOGO] 38 41 PROJECT FLEX - PRELIMINARY COMPANY VALUATION SUMMARY CHART - -------------------------------------------------------------------------------- [BAR GRAPH] Comparable Companies 2000E FFO Multiple 6.7x - 8.7x $ 12.78 $ 10.37 Comparable Transactions 2000E FFO Multiple 7.2x - 12.7x $ 19.56 $ 11.09 CSI NAV Analysis $ 15.13 $ 12.19 CSI Liquidation Analysis NPV of 24 month Liquidation Discounted 13-15% $ 13.86 $ 11.20 SSB NAV Analysis $ 14.60 $ 12.50 SSB Liquidation $ 14.05 $ 11.43 DDR/Lend Lease / MT $13.18 DDR/Lend Lease $12.89 Note: Assumes $17.5 million in transaction expenses [CHASE LOGO] 39 42 PROJECT FLEX - PRELIMINARY COMPANY VALUATION FORWARD FFO ANALYSIS - -------------------------------------------------------------------------------- Price/Latest Quarter Annualized FFO [GRAPH] [CHASE LOGO] 40 43 PROJECT FLEX - PRELIMINARY COMPANY VALUATION PUBLIC COMPANY & PRECEDENT TRANSACTION ANALYSIS - -------------------------------------------------------------------------------- PUBLIC COMPANY ANALYSIS COMPARABLE RANGE IMPLIED AIP VALUE AIP VARIABLE HIGH LOW HIGH(1) LOW(1) - ------------ ---- ---- ------- ------ 2000E FFO $ 1.54 8.3x 6.7x $12.78 $10.37 2000E EBITDA (millions) $57.16 10.2x 10.1x $12.48 $12.33 NAV $14.76 (10.4)% (21.9)% $13.22 $11.53 Notes: (1) Excludes extreme high and low values PRECEDENT TRANSACTION ANALYSIS COMPARABLE RANGE IMPLIED AIP VALUE AIP VARIABLE HIGH LOW HIGH(1) LOW(1) - ------------ ---- ---- ------- ------ 2000E FFO $ 1.54 12.7x 7.2x $19.56 $11.09 2000E EBITDA (millions) $57.16 12.4x 10.6x $18.59 $13.69 20 Days Prior $12.01 28.0% 0.9% $15.37 $12.12 Notes: (1) Excludes extreme high and low values [CHASE LOGO] 41 44 REVIEW OF CSI DISCUSSIONS WITH LEND LEASE [CHASE LOGO] 42 45 PROJECT FLEX - REVIEW OF CSI DISCUSSIONS WITH LEND LEASE OVERVIEW - -------------------------------------------------------------------------------- [ ] On 4/26/00, CSI and Lend Lease Real Estate Investments, Inc. ("Lend Lease") discussed the following: - CSI's role as financial advisor to the Special Committee - the history of Lend Lease's acquisition interest in AIP's assets - an asset-by-asset discussion of Lend Lease's due diligence - the status of Lend Lease's interest in moving forward [ ] Due diligence completed by Lend Lease to date has included: - site inspections of each asset, and meetings with each property manager - inspection of all loan documents and prepayment penalties - a completed (and updated) DCF analysis for each asset [ ] Regarding their interest in moving forward: - their latest acquisition proposal dated 4/19/00 is a "best and final" bid - this latest proposal expires on 4/30/00 - they stated they have submitted four written offers and one verbal offer, while never receiving a written response - openly frustrated with what they perceive as an indecisive Board - their interest in acquiring the assets will expire if the Company does not move forward with documentation following the 5/2/00 board meeting - they are willing for the transaction to be contingent on the Special Committee's receipt of a fairness opinion from CSI, so long as documentation commences immediately [CHASE LOGO] 43 46 PROJECT FLEX - REVIEW OF CSI DISCUSSIONS WITH LEND LEASE CONSIDERATIONS - -------------------------------------------------------------------------------- CONSIDERATIONS COMMENTS -------------- -------- [ ] Due diligence period [ ] Reasonable - Proposed 60 days [ ] Deposit [ ] Perhaps higher - Proposed $1.0 million [ ] Breakage fee [ ] Lower - Proposed $10.0 million [ ] Closing [ ] Reasonable - Proposed 75 days [ ] Carving out additional assets [ ] Perceived as "same old thing"; most likely Lend Lease will walk away [ ] Manhattan Tower [ ] Right of first refusal negotiated away; will - Proposed one day right of first negatively impact marketing refusal process [ ] Bid valuation [ ] Board needs to formulate formal response [CHASE LOGO] 44 47 REVIEW OF CSI DISCUSSIONS WITH DDR [CHASE LOGO] 45 48 PROJECT FLEX - REVIEW OF CSI DISCUSSIONS WITH DDR OVERVIEW - -------------------------------------------------------------------------------- [ ] On May 2, 2000, CSI and Scott Wolstein ("DDR") discussed the following: - DDR believes it is paying a premium for the stub - DDR's discussions with other interested buyers for the stub are at lower prices, and some involve DDR providing subordinated debt - Willing to pay a reasonable premium for the stub to effectuate a transaction - DDR's assets have more near-term rollover; difficult to compare cap rates on the portfolios - Transaction structure - Transaction timing - Valuation methodology for DDR assets - Prospects for re-sale of DDR assets [ ] Due diligence completed by DDR to date includes: - Site inspections of most assets, and meetings with property manager - Third party valuation analysis of DDR assets performed by CB Richard Ellis [CHASE LOGO] 46 49 PROJECT FLEX - REVIEW OF DISCUSSIONS WITH DDR CSI VIEWPOINT - -------------------------------------------------------------------------------- CONSIDERATIONS COMMENTS -------------- -------- [ ] Valuation [ ] Board needs to formulate response - Proposal is $272 million [ ] Treatment of capital expenditures [ ] Impacts cash in StubCo [ ] Timing of transaction [ ] Impacts operations and cash in StubCo [ ] Treatment of dividend [ ] Impacts cash in StubCo [ ] Responsibility for transaction costs [ ] DDR assumption simplifies closing; impacts cash in StubCo [ ] Treatment of working capital, net [ ] Impacts cash in StubCo [ ] Due diligence period [ ] Typically at least 60 days [ ] Break-up fee [ ] Typical for transaction [ ] Refunding mechanism on bulk sale of assets [ ] Negotiating point [CHASE LOGO] 47 50 REVIEW OF STRATEGIC ALTERNATIVES [CHASE LOGO] 48 51 PROJECT FLEX - REVIEW OF SELECTED STRATEGIC ALTERNATIVES SUMMARY OF OBSERVATIONS - -------------------------------------------------------------------------------- STRATEGIC SHAREHOLDER ALTERNATIVE DESCRIPTION VALUE - ----------- ----------- ----------- STATUS QUO [ ] Immediately conclude [ ] Equity valuation may strategic alternative review decline given lack of [ ] Articulate the new liquidity, research and decision, business and operating strategic direction and strategy leverage profile [ ] Market may view strategic alternative review as failure, questioning asset valuation and attractiveness of Company to strategic partners RE-MARKET COMPANY FOR [ ] Re-approach universe of [ ] SSB process cleared the STRATEGIC MERGER OR SALE strategic merger partners and market of logical buyers financial buyers [ ] Lend/Lease/DDR bid is the best offer received to-date EXECUTE LEND LEASE AND [ ] Commence final negotiations [ ] Provides highest current DDR TRANSACTIONS [ ] Independently sell selected proceeds to shareholders from assets SSB process [ ] Merge remaining assets with [ ] Provides liquidity to DDR in exchange for its ownership shareholders position EXECUTE LEND LEASE [ ] Finalize appropriate [ ] Company is in position TRANSACTION AND LIQUIDATE valuations, terms and conditions of owning lower quality assets for Lend Lease and DDR [ ] Liquidation risks [ ] Commence final negotiations [ ] Difficult to define with Lend Lease ultimate proceeds [ ] Begin marketing remaining assets in groups and/or individually EXECUTE DDR TRANSACTION [ ] Commence final negotiations [ ] Resolves AIP / DDR AND PURSUE STATUS QUO with DDR relationship [ ] Determine operating [ ] Lower quality assets are strategy for remaining assets disposed [ ] Reduces size of Company [ ] Increases leverage profile LIQUIDATE ASSETS IN [ ] Begin marketing remaining [ ] Difficult to estimate GROUPS AND/OR INDIVIDUALLY assets in groups and/or value individually [ ] Subject to multiple market risks EVALUATION FACTORS STRATEGIC EXECUTION STATUS OF ALTERNATIVE RISK TIMING DDR PUT OPTION - ----------- --------- ------ -------------- STATUS QUO [ ] Must formulate and [ ] Begins immediately, but [ ] Assuming attractive cost implement business plan to new business plan of investment opportunities, enhance shareholder value implementation (e.g., selected Board may begin accessing [ ] Strategic business plan asset sales, acquisitions equity through DDR Put Option must be compelling to strategy, etc.) may require institutional community to substantial timeframe attract equity capital [ ] Will require Board [ ] Major shareholder desire agreement to effectively to exit implement RE-MARKET COMPANY FOR [ ] Limited number of [ ] At least six to nine [ ] Likely to suspend DDR STRATEGIC MERGER OR SALE interested buyers based on months funding commitment while SSB's comprehensive process (if successful) pursuing transaction [ ] Likely viewed as [ ] Tainted transaction "tainted" situation process may require additional [ ] Likely strategic buyers time away from market (e.g., PS Business Parks) exhibited marginal interest in franchise [ ] Market may question intent of seller EXECUTE LEND LEASE AND [ ] Due diligence risks [ ] DDR- 6 months [ ] Cease to exist DDR TRANSACTIONS [ ] Selected assets appear [ ] Lend Lease - 3-4 months to be highly marketable (e.g.,[ ] Fastest way to get cash Manhattan Tower and Apollo) to shareholders [ ] DDR and Lend Lease desire closure EXECUTE LEND LEASE [ ] Significant market risk [ ] 3-4 months for Lend Lease [ ] Cease to exist TRANSACTION AND LIQUIDATE in liquidation transaction [ ] Requires significant [ ] 18-24 months for management commitment and liquidation coordination EXECUTE DDR TRANSACTION [ ] Smaller market [ ] Three to six months for [ ] Cease to exist AND PURSUE STATUS QUO capitalization company, DDR transaction with high leverage [ ] Must establish status quo business model LIQUIDATE ASSETS IN [ ] Liquidation risks [ ] 18-24 months [ ] Cease to exist GROUPS AND/OR INDIVIDUALLY [ ] Overhead EVALUATION FACTORS ONGOING SOCIAL STRATEGIC & EMPLOYEE ACCESS TO CAPITAL / ALTERNATIVE ISSUES CAPITAL MARKET POSITION - ----------- -------------- ----------------------- STATUS QUO [ ] Ongoing strain between [ ] Limited access to public DDR and management / Board or private equity [ ] Employees likely to [ ] High existing leverage embrace definitive direction profile of Company [ ] No Wall Street sponsorship RE-MARKET COMPANY FOR [ ] Prolongs current [ ] In a strategic merger: STRATEGIC MERGER OR SALE situation - May have improved access [ ] Could further impact to capital morale of employees - Greater critical mass and liquidity - Potentially de-levers the Company EXECUTE LEND LEASE AND [ ] Brings resolution [ ] Not applicable DDR TRANSACTIONS EXECUTE LEND LEASE [ ] Liquidations are [ ] Not applicable TRANSACTION AND LIQUIDATE challenging on employee morale [ ] Most likely requires revised incentive compensation structure EXECUTE DDR TRANSACTION [ ] Brings resolution to [ ] Limited access to public AND PURSUE STATUS QUO DDR/AIP relationship or private equity [ ] High/increasing leverage profile [ ] No Wall Street sponsorship LIQUIDATE ASSETS IN [ ] Liquidations are [ ] Not applicable GROUPS AND/OR INDIVIDUALLY challenging on employee morale [ ] Most likely requires revised incentive compensation AIP RELATIVE POSITION - ----------------------- ---------------------- --------------------- ---------------------- ---------------------- POSITIVE NEUTRAL TO POSITIVE NEUTRAL NEUTRAL TO NEGATIVE NEGATIVE - ----------------------- ---------------------- --------------------- ---------------------- ---------------------- [CHASE LOGO] 49 52 NEXT STEPS AND CONSIDERATIONS [CHASE LOGO] 50 53 PROJECT FLEX NEXT STEPS AND CONSIDERATIONS - ------------------------------------------------------------------------------- [ ] Finalize strategic alternatives review [ ] Formulate final and formal response to DDR and Lend Lease [ ] Mobilize to execute selected strategic alternative [CHASE LOGO] 51 54 APPENDIX A PRELIMINARY PROPERTY VALUATION DETAIL [CHASE LOGO] 52 55 PROJECT FLEX - PRELIMINARY PROPERTY VALUATION DETAIL SORTED BY REGION (PAGE 1 OF 2) - ------------------------------------------------------------------------------- NET OPERATING INCOME CAP RATES -------------------------------------------------------- ---------------------- 1999 FYE 6/01 COMPANY CAP PROPERTY NAME ACTUAL ARGUS '00 BUDGET CSI AIP RATE - ------------- --------- --------- ---------- --------- ----- ----- 10505 Sorrento 432,220 644,533 590,673 585,780 10.00% 10.00 107 Woodmere 519,557 575,707 579,115 573,645 10.00% 10.00 3100 Alfred 559,084 621,496 603,201 600,054 9.75% 9.75 485 Clyde 771,022 782,435 790,923 785,118 9.75% 10.00 Baytech Park 3,292,667 3,756,210 3,675,639 3,658,137 10.00% 10.00 Bridgeway Tech Center/Gateway 1,865,720 2,143,498 2,052,753 2,078,324 9.50% 9.50 Centre Pointe Office Park 2,189,932 2,384,210 2,512,865 2,545,817 10.00% 10.00 Columbia Corp Ctr 1,242,454 1,420,840 1,383,537 1,399,840 10.00% 10.00 Gibraltar Tech Center 247,975 681,842 665,320 661,956 9.75% 9.75 Humboldt Tech Center 403,838 1,140,857 1,115,451 1,082,653 9.75% 9.75 Huntington Drive 669,520 782,076 747,488 757,035 10.50% 10.50 Junction Business Park 1,083,964 1,334,058 1,643,735 1,512,238 9.50% 9.75 Kodak 630,796 669,029 658,951 653,567 10.00% 10.00 Manhattan Towers 2,866,509 3,495,784 3,145,362 3,181,517 7.00% n/a Stewart Plaza 622,942 731,782 676,872 672,455 9.50% 9.50 CALIFORNIA TOTAL 17,398,200 21,164,357 20,841,885 20,748,136 9.85% 9.88 Apollo Drive Office Building (55.84%) 1,099,860 2,029,175 1,644,367 1,981,589 9.00% 9.72 Battlefield Business Park 992,589 1,052,872 1,055,701 1,024,196 10.50% 10.50 Corporex Plaza I 604,238 652,875 637,770 641,522 10.50% 10.50 Greenbrier Circle Corp. Ctr 1,381,896 2,183,790 1,649,480 1,662,006 10.50% 10.50 Greenbrier Tech Center I 753,127 671,382 672,847 664,125 10.50% 10.50 Norfolk Commerce Ctr 2,166,501 2,279,994 2,246,837 2,262,813 10.00% 10.00 Northpointe B 266,552 301,899 297,754 294,398 10.00% 10.00 Northpointe C 347,440 427,154 415,498 419,367 10.50% 10.50 President's Plaza 308,466 329,470 332,730 335,474 10.50% 10.50 Tech Center 29 Ph I 1,356,453 1,526,338 1,406,302 1,388,611 10.00% 10.00 Tech Center 29 Ph II 722,213 780,567 769,141 748,047 10.50% 10.50 Tech Center 29 Ph III 800,036 863,426 836,381 830,518 10.50% 10.50 Volusia Point Shopping Center 806,774 889,060 847,588 857,892 11.00% 11.00 Winter Park BusinessCenter 991,421 1,089,848 1,013,834 1,023,229 10.25% 10.25 EAST TOTAL 12,597,566 15,077,850 13,826,230 14,133,785 10.14% 10.25 1881 Pine Street 681,751 875,914 711,780 715,809 11.00% 11.00 Alumax Building/Reynolds 307,257 294,363 287,389 275,344 11.00% 11.00 Hardline Services Building 740,142 734,893 734,400 696,873 10.50% 10.50 Heritage Business Center 206,230 254,687 139,414 217,004 10.50% 11.50 Heritage VSA 372,354 399,873 395,784 379,688 10.50% 11.00 Northwest Business Center 354,228 707,362 585,377 650,215 11.00% 11.00 Steris Building 247,045 261,646 166,876 201,620 15.00% 15.00 MIDWEST TOTAL 2,909,007 3,528,738 3,021,020 3,136,553 11.01% 11.11 CSI VALUATION ---------------------------------------------------------------------------------------- PRE-ADJUST. LEASING DEF. MAINT. ADJUSTED % OF PROPERTY NAME CSI VALUE COSTS / CAP EX CSI VALUE TOTAL PSF - ------------- ----------- -------- ---------- ---------- ----- -------- 10505 Sorrento 5,857,796 -- -- 5,857,796 0.95% $ 108 107 Woodmere 5,736,451 -- -- 5,736,451 0.93% $ 100 3100 Alfred 6,154,402 -- -- 6,154,402 1.00% $ 182 485 Clyde 7,851,181 -- -- 7,851,181 1.27% $ 127 Baytech Park 36,581,375 -- -- 36,581,375 5.93% $ 194 Bridgeway Tech Center/Gateway 21,877,098 (195,145) (93,300) 21,588,653 3.50% $ 127 Centre Pointe Office Park 25,458,166 (179,146) (861,800) 24,417,220 3.96% $ 124 Columbia Corp Ctr 13,998,398 (487,643) (191,521) 13,319,234 2.16% $ 104 Gibraltar Tech Center 6,789,297 -- (50,000) 6,739,297 1.09% $ 186 Humboldt Tech Center 11,104,133 -- -- 11,104,133 1.80% $ 185 Huntington Drive 7,209,856 (48,621) -- 7,161,235 1.16% $ 114 Junction Business Park 15,510,132 -- -- 15,510,132 2.51% $ 200 Kodak 6,535,668 -- -- 6,535,668 1.06% $ 111 Manhattan Towers 50,000,000 n/a n/a 50,000,000 8.10% $ 162 Stewart Plaza 7,078,469 (122,274) -- 6,956,195 1.13% $ 148 CALIFORNIA TOTAL 227,742,422 (1,032,829) (1,196,621) 225,512,972 36.55% $ 146 Apollo Drive Office Building (55.84%) 20,381,600 -- -- 20,381,600 3.30% $ 140 Battlefield Business Park 9,754,243 -- (60,000) 9,694,243 1.57% $ 63 Corporex Plaza I 6,109,736 (119,630) (407,162) 5,582,944 0.90% $ 58 Greenbrier Circle Corp. Ctr 15,828,626 15,828,626 2.57% $ 69 Greenbrier Tech Center I 6,325,000 (112,315) (331,574) 5,881,111 0.95% $ 62 Norfolk Commerce Ctr 22,628,130 (375,691) (421,000) 21,831,439 3.54% $ 67 Northpointe B 2,943,976 -- -- 2,943,976 0.48% $ 80 Northpointe C 3,993,969 -- -- 3,993,969 0.65% $ 81 President's Plaza 3,194,993 (42,710) (131,063) 3,021,220 0.49% $ 71 Tech Center 29 Ph I 13,886,106 (182,576) (219,100) 13,484,430 2.19% $ 76 Tech Center 29 Ph II 7,124,255 (56,400) -- 7,067,855 1.15% $ 121 Tech Center 29 Ph III 7,909,696 (33,556) -- 7,876,140 1.28% $ 134 Volusia Point Shopping Center 7,799,017 (11,280) -- 7,787,737 1.26% $ 103 Winter Park BusinessCenter 9,982,717 (144,388) -- 9,838,329 1.59% $ 82 EAST TOTAL 137,862,062 (1,078,546) (1,569,899) 135,213,617 21.91% $ 75 1881 Pine Street 6,507,357 (323,330) (73,155) 6,110,872 0.99% $ 55 Alumax Building/Reynolds 2,503,125 -- -- 2,503,125 0.41% $ 38 Hardline Services Building 6,636,887 -- -- 6,636,887 1.08% $ 28 Heritage Business Center 1,886,987 (129,384) (147,600) 1,610,003 0.26% $ 45 Heritage VSA 3,451,714 -- -- 3,451,714 0.56% $ 40 Northwest Business Center 5,911,045 (446,176) -- 5,464,869 0.89% $ 38 Steris Building 1,344,132 -- (50,000) 1,294,132 0.21% $ 32 MIDWEST TOTAL 28,241,248 (898,890) (270,755) 27,071,603 4.39% $ 38 OTHER VALUATIONS ------------------------------------------------------- SSB AIP PROPERTY NAME ARGUS 06/14/99 MGMT COST ---------- ---------- ---------- ---------- 10505 Sorrento 5,082,135 5,100,000 6,445,330 4,750,000 107 Woodmere 5,319,086 5,200,000 5,757,070 5,374,000 3100 Alfred 6,297,623 5,300,000 6,374,318 5,791,000 485 Clyde 15,016,538 11,000,000 8,024,974 7,862,000 Baytech Park 40,644,473 33,365,000 37,562,100 35,345,000 Bridgeway Tech Center/Gateway 23,412,181 22,000,000 22,563,137 20,906,000 Centre Pointe Office Park 27,994,652 22,500,000 23,842,100 21,210,000 Columbia Corp Ctr 13,792,498 13,400,000 14,208,400 13,500,000 Gibraltar Tech Center 6,599,536 17,800,000 6,993,251 17,800,000 Humboldt Tech Center 10,634,891 w/Gibraltar 11,701,097 w/Gibraltar Huntington Drive 7,153,290 7,000,000 7,448,343 8,000,000 Junction Business Park 10,939,067 12,300,000 14,042,716 11,380,000 Kodak 7,398,817 6,400,000 6,690,290 5,026,000 Manhattan Towers 52,083,719 38,400,000 49,939,771 23,053,000 Stewart Plaza 8,213,318 6,300,000 7,702,968 6,085,000 CALIFORNIA TOTAL 240,581,824 206,065,000 229,295,866 186,082,000 Apollo Drive Office Building (55.84%) 14,679,846 18,147,000 22,546,389 17,673,000 Battlefield Business Park 9,876,090 13,400,000 10,027,352 13,200,000 Corporex Plaza I 5,833,687 5,690,000 6,217,857 4,948,000 Greenbrier Circle Corp. Ctr 17,475,376 15,500,000 20,798,000 14,481,000 Greenbrier Tech Center I 7,381,352 7,300,000 6,394,114 7,207,000 Norfolk Commerce Ctr 21,590,780 22,100,000 22,799,940 20,450,000 Northpointe B 2,928,950 6,300,000 3,018,990 5,869,000 Northpointe C 4,157,358 see B 4,068,133 see B President's Plaza 3,084,069 2,880,000 3,137,810 2,375,000 Tech Center 29 Ph I 13,143,272 28,700,000 15,263,380 26,626,000 Tech Center 29 Ph II 7,044,476 see Ph1 7,433,971 see Ph1 Tech Center 29 Ph III 7,673,341 see Ph1 8,223,105 see Ph1 Volusia Point Shopping Center 7,827,186 8,200,000 8,082,364 7,271,000 Winter Park BusinessCenter 10,212,330 9,900,000 10,632,663 9,250,000 EAST TOTAL 132,908,113 138,117,000 148,644,069 129,350,000 1881 Pine Street 8,277,877 6,410,000 7,962,855 6,700,000 Alumax Building/Reynolds 2,787,623 2,830,000 2,676,027 2,970,000 Hardline Services Building 7,245,296 7,000,000 6,998,981 7,543,000 Heritage Business Center 2,466,568 2,120,000 2,425,590 2,395,000 Heritage VSA 4,054,165 3,790,000 3,808,314 3,985,000 Northwest Business Center 7,562,648 5,700,000 6,430,564 7,512,000 Steris Building 2,519,294 2,420,000 1,744,307 2,460,000 MIDWEST TOTAL 34,913,471 30,270,000 32,046,638 33,565,000 [CHASE LOGO] 53 56 PROJECT FLEX - PRELIMINARY PROPERTY VALUATION DETAIL SORTED BY REGION (PAGE 2 OF 2) - -------------------------------------------------------------------------------- NET OPERATING INCOME CAP RATES -------------------------------------------------- -------------------- 1999 FYE 6/01 COMPANY PROPERTY NAME ACTUAL ARGUS '00 BUDGET CSI AIP CSI - ------------- --------- --------- ---------- --------- ----- ----- 2121 Glenville 223,591 208,107 204,668 202,765 10.25% 10.25% Avion Business Center 537,493 599,832 558,096 545,109 10.00% 10.00% Beltline Business Center 214,681 448,397 225,719 586,604 10.00% 10.00% Cameron Creek 319,024 411,771 403,788 407,292 10.00% 10.00% Carpenter Center 149,958 215,295 190,032 210,492 10.75% 10.50% Carrier Place 377,013 425,958 387,472 393,532 10.50% 10.25% Central Park Office Center 412,357 549,271 523,140 516,478 10.25% 10.25% Commerce Center 1,010,187 1,459,742 1,406,807 1,407,289 11.00% 10.50% Commerce Park North 397,034 422,832 425,000 416,614 10.50% 10.00% D/FW North 83,563 364,682 333,915 333,617 10.00% 10.00% Gateway 5&6 399,884 543,457 530,510 507,141 10.50% 10.50% Meridian 165,196 184,864 167,009 160,013 10.00% 9.75% Northgate II 781,539 878,500 808,092 871,606 10.25% 11.00% Northgate III 1,207,316 1,238,475 1,005,501 1,001,197 10.50% 10.75% Northview Bus. Ctr/Whitney Jordan 2,770,800 2,412,624 2,327,563 2,231,872 10.25% 10.25% Parkway Tech Center 357,198 424,911 417,826 411,353 10.00% 10.00% Plaza Southwest 585,570 603,265 603,455 601,560 10.50% 11.00% Shady Trail Business Park 200,332 255,363 232,502 230,691 11.00% 10.75% Skyway Business Center 297,864 269,170 245,810 239,526 10.50% 10.50% Southeast Comm. Ctr/Ben White 92,052 246,233 210,664 200,880 11.00% 11.00% Spring Valley Business Center 1,057,551 1,179,986 1,107,737 1,099,158 10.75% 10.75% Summit Park 897,182 999,347 971,974 932,937 10.25% 10.25% Technipark 10 405,534 442,653 412,531 475,548 10.50% 10.50% Valley View Commerce Park 506,608 719,109 697,515 698,697 10.00% 10.25% Valwood II 180,549 247,033 138,271 267,159 10.50% 10.50% Westchase Park 249,159 328,293 267,670 268,643 10.25% 9.50% TEXAS TOTAL 13,879,235 16,079,170 14,803,267 15,217,771 10.39% 10.39% Academy Point 927,006 1,103,109 998,386 1,010,526 10.50% 10.50% AeroTech R&D 747,168 812,613 762,143 755,338 10.50% 10.50% Black Canyon Tech 619,582 869,103 658,141 782,798 10.25% 10.25% Gateway West (Skygate) 1,160,275 1,439,300 1,188,145 1,198,808 10.00% 10.00% Interlocken Office 1,452,399 1,511,556 1,488,034 1,476,692 10.20% 10.20% Inverness Business Park 802,745 837,479 751,118 742,208 10.00% 10.00% Metro Business Park III 892,531 971,215 954,169 963,728 10.00% 10.00% Tamarac Square 1,660,205 1,859,583 1,230,591 1,197,921 11.00% 12.00% Washington Business Park 1,137,392 1,078,344 1,013,750 1,021,691 10.00% 10.00% WEST TOTAL 9,399,303 10,482,302 9,044,477 9,149,709 10.17% 10.17% TOTAL PORTFOLIO 56,183,311 66,332,417 61,536,879 62,385,953 10.17% 10.20% CSI VALUATION ---------------------------------------------------------------------------------- PRE-ADJUST. LEASING DEF. MAINT. ADJUSTED % OF PROPERTY NAME CSI VALUE COSTS / CAP EX CSI VALUE TOTAL PSF - ------------- ----------- --------- ---------- ---------- ----- -------- 2121 Glenville 1,978,191 -- -- 1,978,191 0.32% $ 96 Avion Business Center 5,451,092 (1,210) -- 5,449,882 0.88% $ 77 Beltline Business Center 5,866,041 (225,417) -- 5,640,624 0.91% $ 94 Cameron Creek 4,072,918 -- -- 4,072,918 0.66% $ 81 Carpenter Center 2,004,682 (16,000) -- 1,988,682 0.32% $ 42 Carrier Place 3,839,335 (108,252) (100,000) 3,631,083 0.59% $ 44 Central Park Office Center 5,038,808 (800) -- 5,038,008 0.82% $ 69 Commerce Center 13,402,751 -- (1,018,200) 12,384,551 2.01% $ 42 Commerce Park North 4,166,138 -- (286,235) 3,879,903 0.63% $ 44 D/FW North 3,336,165 (49,782) -- 3,286,383 0.53% $ 44 Gateway 5&6 4,829,913 -- -- 4,829,913 0.78% $ 65 Meridian 1,641,155 -- -- 1,641,155 0.27% $ 23 Northgate II 7,923,693 (171,015) (51,000) 7,701,678 1.25% $ 33 Northgate III 9,313,464 -- -- 9,313,464 1.51% $ 36 Northview Bus. Ctr/Whitney Jordan 21,774,360 -- (100,000) 21,674,360 3.51% $ 85 Parkway Tech Center 4,113,533 -- -- 4,113,533 0.67% $ 59 Plaza Southwest 5,468,731 -- (78,203) 5,390,528 0.87% $ 36 Shady Trail Business Park 2,145,959 (29,933) -- 2,116,026 0.34% $ 31 Skyway Business Center 2,281,203 -- -- 2,281,203 0.37% $ 34 Southeast Comm. Ctr/Ben White 1,826,182 -- (65,000) 1,761,182 0.29% $ 51 Spring Valley Business Center 10,224,725 -- (112,929) 10,111,796 1.64% $ 107 Summit Park 9,101,820 -- -- 9,101,820 1.48% $ 94 Technipark 10 4,529,024 (45,737) (126,500) 4,356,787 0.71% $ 61 Valley View Commerce Park 6,816,558 -- -- 6,816,558 1.10% $ 49 Valwood II 2,544,369 (236,515) (139,400) 2,168,454 0.35% $ 41 Westchase Park 2,827,819 (107,707) -- 2,720,112 0.44% $ 57 TEXAS TOTAL 146,518,629 (992,368) (2,077,467) 143,448,794 23.25% $ 54 Academy Point 9,624,058 (4,934) (75,000) 9,544,124 1.55% $ 105 AeroTech R&D 7,193,698 (377,635) (60,000) 6,756,063 1.09% $ 89 Black Canyon Tech 7,637,049 (410,309) -- 7,226,740 1.17% $ 72 Gateway West (Skygate) 11,988,078 (224,664) (92,280) 11,671,134 1.89% $ 78 Interlocken Office 14,477,369 -- (182,248) 14,295,121 2.32% $ 117 Inverness Business Park 7,422,076 (43,877) (53,500) 7,324,699 1.19% $ 76 Metro Business Park III 9,637,278 (113,516) (60,000) 9,463,762 1.53% $ 89 Tamarac Square 9,982,679 -- (475,000) 9,507,679 1.54% $ 48 Washington Business Park 10,216,908 (135,050) (99,179) 9,982,679 1.62% $ 73 WEST TOTAL 88,179,193 (1,309,985) (1,097,207) 85,772,001 13.90% $ 80 TOTAL PORTFOLIO 628,543,554 (5,312,618) (6,211,949) 617,018,987 100.00% $ 79 OTHER VALUATIONS ------------------------------------------------------- SSB AIP PROPERTY NAME ARGUS 06/14/99 MGMT COST - ------------- ---------- ---------- ---------- ---------- 2121 Glenville 2,061,964 4,820,000 2,030,312 1,800,000 Avion Business Center 5,585,296 5,700,000 5,998,320 4,750,000 Beltline Business Center 5,461,109 4,800,000 4,483,970 6,516,000 Cameron Creek 3,651,371 3,730,000 4,117,710 4,800,000 Carpenter Center 2,096,707 1,700,000 2,002,744 1,922,000 Carrier Place 3,789,524 3,600,000 4,056,743 3,143,000 Central Park Office Center 5,426,346 4,820,000 5,358,741 4,200,000 Commerce Center 13,151,468 11,200,000 13,270,382 10,700,000 Commerce Park North 4,235,547 3,200,000 4,026,971 7,100,000 D/FW North 3,372,976 3,000,000 3,646,820 3,685,000 Gateway 5&6 4,988,669 4,800,000 5,175,781 4,676,000 Meridian 1,914,667 1,600,000 1,848,640 1,309,000 Northgate II 8,643,248 6,700,000 8,570,732 10,765,000 Northgate III 12,223,029 11,000,000 11,795,000 10,913,000 Northview Bus. Ctr/Whitney Jordan 25,431,753 22,555,000 23,537,795 22,250,000 Parkway Tech Center 3,797,000 3,300,000 4,249,110 3,137,000 Plaza Southwest 6,223,044 5,700,000 5,745,381 5,735,000 Shady Trail Business Park 2,189,449 2,400,000 2,321,482 1,480,000 Skyway Business Center 2,919,210 2,230,000 2,563,524 2,100,000 Southeast Comm. Ctr/Ben White 1,938,681 1,830,000 2,238,482 1,800,000 Spring Valley Business Center 9,906,927 9,300,000 10,976,614 9,250,000 Summit Park 10,424,182 8,700,000 9,749,727 8,638,000 Technipark 10 4,300,694 4,100,000 4,215,743 4,110,000 Valley View Commerce Park 7,112,056 6,200,000 7,191,090 4,000,000 Valwood II 2,182,486 2,250,000 2,352,695 2,441,000 Westchase Park 3,215,064 2,150,000 3,202,859 4,400,000 TEXAS TOTAL 156,242,467 141,385,000 154,727,368 145,620,000 Academy Point 11,328,571 9,230,000 10,505,800 8,650,000 AeroTech R&D 7,925,157 6,720,000 7,739,171 6,600,000 Black Canyon Tech 8,740,795 8,104,000 8,479,054 7,850,000 Gateway West (Skygate) 12,346,119 10,000,000 14,393,000 7,775,000 Interlocken Office 15,567,318 14,640,000 14,819,176 14,632,000 Inverness Business Park 7,969,184 7,380,000 8,374,790 7,550,000 Metro Business Park III 8,505,453 9,280,000 9,712,150 9,900,000 Tamarac Square 17,925,532 18,000,000 16,905,300 33,992,000 Washington Business Park 9,480,859 9,980,000 10,783,440 9,250,000 WEST TOTAL 99,788,988 93,334,000 101,711,882 106,199,000 TOTAL PORTFOLIO 664,434,863 609,171,000 666,425,822 600,816,000 [CHASE LOGO] 54 57 PROJECT FLEX - PRELIMINARY PROPERTY VALUATION DETAIL LEND LEASE ASSETS - -------------------------------------------------------------------------------- NET OPERATING INCOME CAP RATES ----------------------------------------------------- ----------------------- 1999 FYE 6/01 COMPANY PROPERTY NAME ACTUAL ARGUS '00 BUDGET CSI AIP CSI - ------------- ------ --------- ---------- --------- ------- ------ 107 Woodmere 519,557 575,707 579,115 573,645 10.00% 10.00% 3100 Alfred 559,084 621,496 603,201 600,054 9.75% 9.75% 485 Clyde 771,022 782,435 790,923 785,118 9.75% 10.00% Academy Point 927,006 1,103,109 998,386 1,010,526 10.50% 10.50% AeroTech R&D 747,168 812,613 762,143 755,338 10.50% 10.50% Avion Business Center 537,493 599,832 558,096 545,109 10.00% 10.00% Battlefield Business Park 992,589 1,052,872 1,055,701 1,024,196 10.50% 10.50% Baytech Park 3,292,667 3,756,210 3,675,639 3,658,137 10.00% 10.00% Black Canyon Tech 619,582 869,103 658,141 782,798 10.25% 10.25% Bridgeway Tech Center/Gateway 1,865,720 2,143,498 2,052,753 2,078,324 9.50% 9.50% Cameron Creek 319,024 411,771 403,788 407,292 10.00% 10.00% Central Park Office Center 412,357 549,271 523,140 516,478 10.25% 10.25% Centre Pointe Office Park 2,189,932 2,384,210 2,512,865 2,545,817 10.00% 10.00% Columbia Corp Ctr 1,242,454 1,420,840 1,383,537 1,399,840 10.00% 10.00% Corporex Plaza I 604,238 652,875 637,770 641,522 10.50% 10.50% Gibraltar Tech Center 247,975 681,842 665,320 661,956 9.75% 9.75% Humboldt Tech Center 403,838 1,140,857 1,115,451 1,082,653 9.75% 9.75% Huntington Drive 669,520 782,076 747,488 757,035 10.50% 10.50% Interlocken Office 1,452,399 1,511,556 1,488,034 1,476,692 10.20% 10.20% Inverness Business Park 802,745 837,479 751,118 742,208 10.00% 10.00% Junction Business Park 1,083,964 1,334,058 1,643,735 1,512,238 9.50% 9.75% Metro Business Park III 892,531 971,215 954,169 963,728 10.00% 10.00% Northpointe B 266,552 301,899 297,754 294,398 10.00% 10.00% Northpointe C 347,440 427,154 415,498 419,367 10.50% 10.50% Northview Bus. Ctr/Whitney Jordan 2,770,800 2,412,624 2,327,563 2,231,872 10.25% 10.25% President's Plaza 308,466 329,470 332,730 335,474 10.50% 10.50% Skyway Business Center 297,864 269,170 245,810 239,526 10.50% 10.50% Southeast Comm. Ctr/Ben White 92,052 246,233 210,664 200,880 11.00% 11.00% Spring Valley Business Center 1,057,551 1,179,986 1,107,737 1,099,158 10.75% 10.75% Stewart Plaza 622,942 731,782 676,872 672,455 9.50% 9.50% Summit Park 897,182 999,347 971,974 932,937 10.25% 10.25% TOTAL W/O MANHATTAN TOWERS 27,813,714 31,892,590 31,147,115 30,946,769 10.38% 10.08% Manhattan Towers 2,866,509 3,495,784 3,145,362 3,181,517 7.00% n/a TOTAL w/Manhattan Towers 30,680,223 35,388,374 34,292,477 34,128,286 n/a n/a CSI VALUATION -------------------------------------------------------------------------------------- PRE-ADJUST. LEASING DEF. MAINT. ADJUSTED % OF PROPERTY NAME CSI VALUE COSTS / CAP EX CSI VALUE TOTAL PSF - ------------- ----------- -------- ----------- ---------- ------- --------- 107 Woodmere 5,736,451 -- -- 5,736,451 1.63% $ 100 3100 Alfred 6,154,402 -- -- 6,154,402 1.75% $ 182 485 Clyde 7,851,181 -- -- 7,851,181 2.23% $ 127 Academy Point 9,624,058 (4,934) (75,000) 9,544,124 2.71% $ 105 AeroTech R&D 7,193,698 (377,635) (60,000) 6,756,063 1.92% $ 89 Avion Business Center 5,451,092 (1,210) -- 5,449,882 1.55% $ 77 Battlefield Business Park 9,754,243 -- (60,000) 9,694,243 2.75% $ 63 Baytech Park 36,581,375 -- -- 36,581,375 10.38% $ 194 Black Canyon Tech 7,637,049 (410,309) -- 7,226,740 2.05% $ 72 Bridgeway Tech Center/Gateway 21,877,098 (195,145) (93,300) 21,588,653 6.13% $ 127 Cameron Creek 4,072,918 -- -- 4,072,918 1.16% $ 81 Central Park Office Center 5,038,808 (800) -- 5,038,008 1.43% $ 69 Centre Pointe Office Park 25,458,166 (179,146) (861,800) 24,417,220 6.93% $ 124 Columbia Corp Ctr 13,998,398 (487,643) (191,521) 13,319,234 3.78% $ 104 Corporex Plaza I 6,109,736 (119,630) (407,162) 5,582,944 1.58% $ 58 Gibraltar Tech Center 6,789,297 -- (50,000) 6,739,297 1.91% $ 186 Humboldt Tech Center 11,104,133 -- -- 11,104,133 3.15% $ 185 Huntington Drive 7,209,856 (48,621) -- 7,161,235 2.03% $ 114 Interlocken Office 14,477,369 -- (182,248) 14,295,121 4.06% $ 117 Inverness Business Park 7,422,076 (43,877) (53,500) 7,324,699 2.08% $ 76 Junction Business Park 15,510,132 -- -- 15,510,132 4.40% $ 200 Metro Business Park III 9,637,278 (113,516) (60,000) 9,463,762 2.69% $ 89 Northpointe B 2,943,976 -- -- 2,943,976 0.84% $ 80 Northpointe C 3,993,969 -- -- 3,993,969 1.13% $ 81 Northview Bus. Ctr/Whitney Jordan 21,774,360 -- (100,000) 21,674,360 6.15% $ 85 President's Plaza 3,194,993 (42,710) (131,063) 3,021,220 0.86% $ 71 Skyway Business Center 2,281,203 -- -- 2,281,203 0.65% $ 34 Southeast Comm. Ctr/Ben White 1,826,182 -- (65,000) 1,761,182 0.50% $ 51 Spring Valley Business Center 10,224,725 -- (112,929) 10,111,796 2.87% $ 107 Stewart Plaza 7,078,469 (122,274) -- 6,956,195 1.97% $ 148 Summit Park 9,101,820 -- -- 9,101,820 2.58% $ 94 TOTAL W/O MANHATTAN TOWERS 307,108,510 (2,147,450) (2,503,523) 302,457,537 85.81% $ 107 Manhattan Towers 50,000,000 n/a n/a 50,000,000 14.19% $ 162 TOTAL w/Manhattan Towers 357,108,510 (2,147,450) (2,503,523) 352,457,537 100.00% $ 112 OTHER VALUATIONS ------------------------------------------------------- SSB AIP PROPERTY NAME ARGUS 06/14/99 MGMT COST - ------------- ---------- ---------- ---------- ---------- 107 Woodmere 5,319,086 5,200,000 5,757,070 5,374,000 3100 Alfred 6,297,623 5,300,000 6,374,318 5,791,000 485 Clyde 15,016,538 11,000,000 8,024,974 7,862,000 Academy Point 11,328,571 9,230,000 10,505,800 8,650,000 AeroTech R&D 7,925,157 6,720,000 7,739,171 6,600,000 Avion Business Center 5,585,296 5,700,000 5,998,320 4,750,000 Battlefield Business Park 9,876,090 13,400,000 10,027,352 13,200,000 Baytech Park 40,644,473 33,365,000 37,562,100 35,345,000 Black Canyon Tech 8,740,795 8,104,000 8,479,054 7,850,000 Bridgeway Tech Center/Gateway 23,412,181 22,000,000 22,563,137 20,906,000 Cameron Creek 3,651,371 3,730,000 4,117,710 4,800,000 Central Park Office Center 5,426,346 4,820,000 5,358,741 4,200,000 Centre Pointe Office Park 27,994,652 22,500,000 23,842,100 21,210,000 Columbia Corp Ctr 13,792,498 13,400,000 14,208,400 13,500,000 Corporex Plaza I 5,833,687 5,690,000 6,217,857 4,948,000 Gibraltar Tech Center 6,599,536 17,800,000 6,993,251 17,800,000 Humboldt Tech Center 10,634,891 w/Gibraltar 11,701,097 w/Gibraltar Huntington Drive 7,153,290 7,000,000 7,448,343 8,000,000 Interlocken Office 15,567,318 14,640,000 14,819,176 14,632,000 Inverness Business Park 7,969,184 7,380,000 8,374,790 7,550,000 Junction Business Park 10,939,067 12,300,000 14,042,716 11,380,000 Metro Business Park III 8,505,453 9,280,000 9,712,150 9,900,000 Northpointe B 2,928,950 6,300,000 3,018,990 5,869,000 Northpointe C 4,157,358 see B 4,068,133 see B Northview Bus. Ctr/Whitney Jordan 25,431,753 22,555,000 23,537,795 22,250,000 President's Plaza 3,084,069 2,880,000 3,137,810 2,375,000 Skyway Business Center 2,919,210 2,230,000 2,563,524 2,100,000 Southeast Comm. Ctr/Ben White 1,938,681 1,830,000 2,238,482 1,800,000 Spring Valley Business Center 9,906,927 9,300,000 10,976,614 9,250,000 Stewart Plaza 8,213,318 6,300,000 7,702,968 6,085,000 Summit Park 10,424,182 8,700,000 9,749,727 8,638,000 TOTAL W/O MANHATTAN TOWERS 327,217,551 298,654,000 316,861,672 292,615,000 Manhattan Towers 52,083,719 38,400,000 49,939,771 23,053,000 TOTAL w/Manhattan Towers 379,301,270 337,054,000 366,801,443 315,668,000 [CHASE LOGO] 55 58 PROJECT FLEX - PRELIMINARY PROPERTY VALUATION DETAIL DDR ASSETS - -------------------------------------------------------------------------------- NET OPERATING INCOME CAP RATES ----------------------------------------------------- --------------------- 1999 FYE 6/01 COMPANY PROPERTY NAME ACTUAL ARGUS '00 BUDGET CSI AIP CSI - ------------- --------- --------- ---------- --------- ------- ------ 10505 Sorrento 432,220 644,533 590,673 585,780 10.00% 10.00% 1881 Pine Street 681,751 875,914 711,780 715,809 11.00% 11.00% 2121 Glenville 223,591 208,107 204,668 202,765 10.25% 10.25% Alumax Building/Reynolds 307,257 294,363 287,389 275,344 11.00% 11.00% Apollo Drive Office Building (55.84%) 1,099,860 2,029,175 1,644,367 1,981,589 9.00% 9.72% Beltline Business Center 214,681 448,397 225,719 586,604 10.00% 10.00% Carpenter Center 149,958 215,295 190,032 210,492 10.75% 10.50% Carrier Place 377,013 425,958 387,472 393,532 10.50% 10.25% Commerce Center 1,010,187 1,459,742 1,406,807 1,407,289 11.00% 10.50% Commerce Park North 397,034 422,832 425,000 416,614 10.50% 10.00% D/FW North 83,563 364,682 333,915 333,617 10.00% 10.00% Gateway 5&6 399,884 543,457 530,510 507,141 10.50% 10.50% Gateway West (Skygate) 1,160,275 1,439,300 1,188,145 1,198,808 10.00% 10.00% Greenbrier Circle Corp. Ctr 1,381,896 2,183,790 1,649,480 1,662,006 10.50% 10.50% Greenbrier Tech Center I 753,127 671,382 672,847 664,125 10.50% 10.50% Hardline Services Building 740,142 734,893 734,400 696,873 10.50% 10.50% Heritage Business Center 206,230 254,687 139,414 217,004 10.50% 11.50% Heritage VSA 372,354 399,873 395,784 379,688 10.50% 11.00% Kodak 630,796 669,029 658,951 653,567 10.00% 10.00% Meridian 165,196 184,864 167,009 160,013 10.00% 9.75% Norfolk Commerce Ctr 2,166,501 2,279,994 2,246,837 2,262,813 10.00% 10.00% Northgate II 781,539 878,500 808,092 871,606 10.25% 11.00% Northgate III 1,207,316 1,238,475 1,005,501 1,001,197 10.50% 10.75% Northwest Business Center 354,228 707,362 585,377 650,215 11.00% 11.00% Parkway Tech Center 357,198 424,911 417,826 411,353 10.00% 10.00% Plaza Southwest 585,570 603,265 603,455 601,560 10.50% 11.00% Shady Trail Business Park 200,332 255,363 232,502 230,691 11.00% 10.75% Steris Building 247,045 261,646 166,876 201,620 15.00% 15.00% Tamarac Square 1,660,205 1,859,583 1,230,591 1,197,921 11.00% 12.00% Tech Center 29 Ph I 1,356,453 1,526,338 1,406,302 1,388,611 10.00% 10.00% Tech Center 29 Ph II 722,213 780,567 769,141 748,047 10.50% 10.50% Tech Center 29 Ph III 800,036 863,426 836,381 830,518 10.50% 10.50% Technipark 10 405,534 442,653 412,531 475,548 10.50% 10.50% Valley View Commerce Park 506,608 719,109 697,515 698,697 10.00% 10.25% Valwood II 180,549 247,033 138,271 267,159 10.50% 10.50% Volusia Point Shopping Center 806,774 889,060 847,588 857,892 11.00% 11.00% Washington Business Park 1,137,392 1,078,344 1,013,750 1,021,691 10.00% 10.00% Westchase Park 249,159 328,293 267,670 268,643 10.25% 9.50% Winter Park BusinessCenter 991,421 1,089,848 1,013,834 1,023,229 10.25% 10.25% TOTAL PORTFOLIO 25,503,088 30,944,043 27,244,402 28,257,667 11.22% 10.40% CSI VALUATION --------------------------------------------------------------------------------- PRE-ADJUST. LEASING DEF. MAINT. ADJUSTED % OF PROPERTY NAME CSI VALUE COSTS / CAP EX CSI VALUE TOTAL PSF - ------------- ----------- -------- ----------- ---------- ------- --------- 10505 Sorrento 5,857,796 -- -- 5,857,796 2.21% $ 108 1881 Pine Street 6,507,357 (323,330) (73,155) 6,110,872 2.31% $ 55 2121 Glenville 1,978,191 -- -- 1,978,191 0.75% $ 96 Alumax Building/Reynolds 2,503,125 -- -- 2,503,125 0.95% $ 38 Apollo Drive Office Building (55.84%) 20,381,600 -- -- 20,381,600 7.70% $ 70 Beltline Business Center 5,866,041 (225,417) -- 5,640,624 2.13% $ 94 Carpenter Center 2,004,682 (16,000) -- 1,988,682 0.75% $ 42 Carrier Place 3,839,335 (108,252) (100,000) 3,631,083 1.37% $ 44 Commerce Center 13,402,751 -- (1,018,200) 12,384,551 4.68% $ 42 Commerce Park North 4,166,138 -- (286,235) 3,879,903 1.47% $ 44 D/FW North 3,336,165 (49,782) -- 3,286,383 1.24% $ 44 Gateway 5&6 4,829,913 -- -- 4,829,913 1.83% $ 65 Gateway West (Skygate) 11,988,078 (224,664) (92,280) 11,671,134 4.41% $ 78 Greenbrier Circle Corp. Ctr 15,828,626 -- -- 15,828,626 5.98% $ 69 Greenbrier Tech Center I 6,325,000 (112,315) (331,574) 5,881,111 2.22% $ 62 Hardline Services Building 6,636,887 -- -- 6,636,887 2.51% $ 28 Heritage Business Center 1,886,987 (129,384) (147,600) 1,610,003 0.61% $ 45 Heritage VSA 3,451,714 -- -- 3,451,714 1.30% $ 40 Kodak 6,535,668 -- -- 6,535,668 2.47% $ 111 Meridian 1,641,155 -- -- 1,641,155 0.62% $ 23 Norfolk Commerce Ctr 22,628,130 (375,691) (421,000) 21,831,439 8.25% $ 67 Northgate II 7,923,693 (171,015) (51,000) 7,701,678 2.91% $ 33 Northgate III 9,313,464 -- -- 9,313,464 3.52% $ 36 Northwest Business Center 5,911,045 (446,176) -- 5,464,869 2.07% $ 38 Parkway Tech Center 4,113,533 -- -- 4,113,533 1.55% $ 59 Plaza Southwest 5,468,731 -- (78,203) 5,390,528 2.04% $ 36 Shady Trail Business Park 2,145,959 (29,933) -- 2,116,026 0.80% $ 31 Steris Building 1,344,132 -- (50,000) 1,294,132 0.49% $ 32 Tamarac Square 9,982,679 -- (475,000) 9,507,679 3.59% $ 48 Tech Center 29 Ph I 13,886,106 (182,576) (219,100) 13,484,430 5.10% $ 76 Tech Center 29 Ph II 7,124,255 (56,400) -- 7,067,855 2.67% $ 121 Tech Center 29 Ph III 7,909,696 (33,556) -- 7,876,140 2.98% $ 134 Technipark 10 4,529,024 (45,737) (126,500) 4,356,787 1.65% $ 61 Valley View Commerce Park 6,816,558 -- -- 6,816,558 2.58% $ 49 Valwood II 2,544,369 (236,515) (139,400) 2,168,454 0.82% $ 41 Volusia Point Shopping Center 7,799,017 (11,280) -- 7,787,737 2.94% $ 103 Washington Business Park 10,216,908 (135,050) (99,179) 9,982,679 3.77% $ 73 Westchase Park 2,827,819 (107,707) -- 2,720,112 1.03% $ 57 Winter Park BusinessCenter 9,982,717 (144,388) -- 9,838,329 3.72% $ 82 TOTAL PORTFOLIO 271,435,044 (3,165,168) (3,708,426) 264,561,450 100.00% $ 66 OTHER VALUATIONS ---------------------------------------------------- SSB AIP PROPERTY NAME ARGUS 06/14/99 MGMT COST - ------------- ---------- ---------- ---------- ---------- 10505 Sorrento 5,082,135 5,100,000 6,445,330 4,750,000 1881 Pine Street 8,277,877 6,410,000 7,962,855 6,700,000 2121 Glenville 2,061,964 4,820,000 2,030,312 1,800,000 Alumax Building/Reynolds 2,787,623 2,830,000 2,676,027 2,970,000 Apollo Drive Office Building (55.84%) 14,679,846 18,147,000 22,546,389 17,673,000 Beltline Business Center 5,461,109 4,800,000 4,483,970 6,516,000 Carpenter Center 2,096,707 1,700,000 2,002,744 1,922,000 Carrier Place 3,789,524 3,600,000 4,056,743 3,143,000 Commerce Center 13,151,468 11,200,000 13,270,382 10,700,000 Commerce Park North 4,235,547 3,200,000 4,026,971 7,100,000 D/FW North 3,372,976 3,000,000 3,646,820 3,685,000 Gateway 5&6 4,988,669 4,800,000 5,175,781 4,676,000 Gateway West (Skygate) 12,346,119 10,000,000 14,393,000 7,775,000 Greenbrier Circle Corp. Ctr 17,475,376 15,500,000 20,798,000 14,481,000 Greenbrier Tech Center I 7,381,352 7,300,000 6,394,114 7,207,000 Hardline Services Building 7,245,296 7,000,000 6,998,981 7,543,000 Heritage Business Center 2,466,568 2,120,000 2,425,590 2,395,000 Heritage VSA 4,054,165 3,790,000 3,808,314 3,985,000 Kodak 7,398,817 6,400,000 6,690,290 5,026,000 Meridian 1,914,667 1,600,000 1,848,640 1,309,000 Norfolk Commerce Ctr 21,590,780 22,100,000 22,799,940 20,450,000 Northgate II 8,643,248 6,700,000 8,570,732 10,765,000 Northgate III 12,223,029 11,000,000 11,795,000 10,913,000 Northwest Business Center 7,562,648 5,700,000 6,430,564 7,512,000 Parkway Tech Center 3,797,000 3,300,000 4,249,110 3,137,000 Plaza Southwest 6,223,044 5,700,000 5,745,381 5,735,000 Shady Trail Business Park 2,189,449 2,400,000 2,321,482 1,480,000 Steris Building 2,519,294 2,420,000 1,744,307 2,460,000 Tamarac Square 17,925,532 18,000,000 16,905,300 33,992,000 Tech Center 29 Ph I 13,143,272 28,700,000 15,263,380 26,626,000 Tech Center 29 Ph II 7,044,476 see Ph1 7,433,971 see Ph1 Tech Center 29 Ph III 7,673,341 see Ph1 8,223,105 see Ph1 Technipark 10 4,300,694 4,100,000 4,215,743 4,110,000 Valley View Commerce Park 7,112,056 6,200,000 7,191,090 4,000,000 Valwood II 2,182,486 2,250,000 2,352,695 2,441,000 Volusia Point Shopping Center 7,827,186 8,200,000 8,082,364 7,271,000 Washington Business Park 9,480,859 9,980,000 10,783,440 9,250,000 Westchase Park 3,215,064 2,150,000 3,202,859 4,400,000 Winter Park BusinessCenter 10,212,330 9,900,000 10,632,663 9,250,000 TOTAL PORTFOLIO 285,133,593 272,117,000 299,624,379 285,148,000 [CHASE LOGO] 56 59 PROJECT FLEX - PRELIMINARY PROPERTY VALUATION DETAIL WESTCORE ASSETS - -------------------------------------------------------------------------------- NET OPERATING INCOME CAP RATES ----------------------------------------------------- --------------------- 1999 FYE 6/01 COMPANY PROPERTY NAME ACTUAL ARGUS '00 BUDGET CSI AIP CSI - ------------- --------- --------- ---------- --------- ------- ------ 107 Woodmere 519,557 575,707 579,115 573,645 10.00% 10.00% 3100 Alfred 559,084 621,496 603,201 600,054 9.75% 9.75% 485 Clyde 771,022 782,435 790,923 785,118 9.75% 10.00% Academy Point 927,006 1,103,109 998,386 1,010,526 10.50% 10.50% AeroTech R&D 747,168 812,613 762,143 755,338 10.50% 10.50% Avion Business Center 537,493 599,832 558,096 545,109 10.00% 10.00% Battlefield Business Park 992,589 1,052,872 1,055,701 1,024,196 10.50% 10.50% Baytech Park 3,292,667 3,756,210 3,675,639 3,658,137 10.00% 10.00% Black Canyon Tech 619,582 869,103 658,141 782,798 10.25% 10.25% Bridgeway Tech Center/Gateway 1,865,720 2,143,498 2,052,753 2,078,324 9.50% 9.50% Cameron Creek 319,024 411,771 403,788 407,292 10.00% 10.00% Central Park Office Center 412,357 549,271 523,140 516,478 10.25% 10.25% Centre Pointe Office Park 2,189,932 2,384,210 2,512,865 2,545,817 10.00% 10.00% Columbia Corp Ctr. 1,242,454 1,420,840 1,383,537 1,399,840 10.00% 10.00% Corporex Plaza I 604,238 652,875 637,770 641,522 10.50% 10.50% Gateway West (Skygate) 1,160,275 1,439,300 1,188,145 1,198,808 10.00% 10.00% Gibraltar Tech Center 247,975 681,842 665,320 661,956 9.75% 9.75% Humboldt Tech Center 403,838 1,140,857 1,115,451 1,082,653 9.75% 9.75% Huntington Drive 669,520 782,076 747,488 757,035 10.50% 10.50% Interlocken Office 1,452,399 1,511,556 1,488,034 1,476,692 10.20% 10.20% Inverness Business Park 802,745 837,479 751,118 742,208 10.00% 10.00% Junction Business Park 1,083,964 1,334,058 1,643,735 1,512,238 9.50% 9.75% Manhattan Towers 2,866,509 3,495,784 3,145,362 3,181,517 7.00% n/a Metro Business Park III 892,531 971,215 954,169 963,728 10.00% 10.00% Northpointe B 266,552 301,899 297,754 294,398 10.00% 10.00% Northpointe C 347,440 427,154 415,498 419,367 10.50% 10.50% Northview Bus. Ctr/Whitney Jordan 2,770,800 2,412,624 2,327,563 2,231,872 10.25% 10.25% President's Plaza 308,466 329,470 332,730 335,474 10.50% 10.50% Skyway Business Center 297,864 269,170 245,810 239,526 10.50% 10.50% Southeast Comm. Ctr/Ben White 92,052 246,233 210,664 200,880 11.00% 11.00% Spring Valley Business Center 1,057,551 1,179,986 1,107,737 1,099,158 10.75% 10.75% Stewart Plaza 622,942 731,782 676,872 672,455 9.50% 9.50% Summit Park 897,182 999,347 971,974 932,937 10.25% 10.25% Washington Business Park 1,137,392 1,078,344 1,013,750 1,021,691 10.00% 10.00% WESTCORE TOTAL 32,977,890 37,906,018 36,494,372 36,348,785 10.1% 10.1% CSI VALUATION ------------------------------------------------------------------------------- PRE-ADJUST. LEASING DEF. MAINT. ADJUSTED % OF PROPERTY NAME CSI VALUE COSTS / CAP EX CSI VALUE TOTAL PSF - ------------- ----------- -------- ----------- ---------- ------- -------- 107 Woodmere 5,736,451 -- -- 5,736,451 1.53% $ 100 3100 Alfred 6,154,402 -- -- 6,154,402 1.65% $ 182 485 Clyde 7,851,181 -- -- 7,851,181 2.10% $ 127 Academy Point 9,624,058 (4,934) (75,000) 9,544,124 2.55% $ 105 AeroTech R&D 7,193,698 (377,635) (60,000) 6,756,063 1.81% $ 89 Avion Business Center 5,451,092 (1,210) -- 5,449,882 1.46% $ 77 Battlefield Business Park 9,754,243 -- (60,000) 9,694,243 2.59% $ 63 Baytech Park 36,581,375 -- -- 36,581,375 9.78% $ 194 Black Canyon Tech 7,637,049 (410,309) -- 7,226,740 1.93% $ 72 Bridgeway Tech Center/Gateway 21,877,098 (195,145) (93,300) 21,588,653 5.77% $ 127 Cameron Creek 4,072,918 -- -- 4,072,918 1.09% $ 81 Central Park Office Center 5,038,808 (800) -- 5,038,008 1.35% $ 69 Centre Pointe Office Park 25,458,166 (179,146) (861,800) 24,417,220 6.53% $ 124 Columbia Corp Ctr. 13,998,398 (487,643) (191,521) 13,319,234 3.56% $ 104 Corporex Plaza I 6,109,736 (119,630) (407,162) 5,582,944 1.49% $ 58 Gateway West (Skygate) 11,988,078 (224,664) (92,280) 11,671,134 3.12% $ 78 Gibraltar Tech Center 6,789,297 -- (50,000) 6,739,297 1.80% $ 186 Humboldt Tech Center 11,104,133 -- -- 11,104,133 2.97% $ 185 Huntington Drive 7,209,856 (48,621) -- 7,161,235 1.91% $ 114 Interlocken Office 14,477,369 -- (182,248) 14,295,121 3.82% $ 117 Inverness Business Park 7,422,076 (43,877) (53,500) 7,324,699 1.96% $ 76 Junction Business Park 15,510,132 -- -- 15,510,132 4.15% $ 200 Manhattan Towers 50,000,000 n/a n/a 50,000,000 13.37% $ 162 Metro Business Park III 9,637,278 (113,516) (60,000) 9,463,762 2.53% $ 89 Northpointe B 2,943,976 -- -- 2,943,976 0.79% $ 80 Northpointe C 3,993,969 -- -- 3,993,969 1.07% $ 81 Northview Bus. Ctr/Whitney Jordan 21,774,360 -- (100,000) 21,674,360 5.79% $ 85 President's Plaza 3,194,993 (42,710) (131,063) 3,021,220 0.81% $ 71 Skyway Business Center 2,281,203 -- -- 2,281,203 0.61% $ 34 Southeast Comm. Ctr/Ben White 1,826,182 -- (65,000) 1,761,182 0.47% $ 51 Spring Valley Business Center 10,224,725 -- (112,929) 10,111,796 2.70% $ 107 Stewart Plaza 7,078,469 (122,274) -- 6,956,195 1.86% $ 148 Summit Park 9,101,820 -- -- 9,101,820 2.43% $ 94 Washington Business Park 10,216,908 (135,050) (99,179) 9,982,679 2.67% $ 73 WESTCORE TOTAL 379,313,496 (2,507,164) (2,694,982) 374,111,350 100.00% $ 109 OTHER VALUATIONS ---------------------------------------------------- SSB AIP PROPERTY NAME ARGUS 06/14/99 MGMT COST - ------------- ---------- ---------- ---------- ---------- 107 Woodmere 5,319,086 5,200,000 5,757,070 5,374,000 3100 Alfred 6,297,623 5,300,000 6,374,318 5,791,000 485 Clyde 15,016,538 11,000,000 8,024,974 7,862,000 Academy Point 11,328,571 9,230,000 10,505,800 8,650,000 AeroTech R&D 7,925,157 6,720,000 7,739,171 6,600,000 Avion Business Center 5,585,296 5,700,000 5,998,320 4,750,000 Battlefield Business Park 9,876,090 13,400,000 10,027,352 13,200,000 Baytech Park 40,644,473 33,365,000 37,562,100 35,345,000 Black Canyon Tech 8,740,795 8,104,000 8,479,054 7,850,000 Bridgeway Tech Center/Gateway 23,412,181 22,000,000 22,563,137 20,906,000 Cameron Creek 3,651,371 3,730,000 4,117,710 4,800,000 Central Park Office Center 5,426,346 4,820,000 5,358,741 4,200,000 Centre Pointe Office Park 27,994,652 22,500,000 23,842,100 21,210,000 Columbia Corp Ctr. 13,792,498 13,400,000 14,208,400 13,500,000 Corporex Plaza I 5,833,687 5,690,000 6,217,857 4,948,000 Gateway West (Skygate) 12,346,119 10,000,000 14,393,000 7,775,000 Gibraltar Tech Center 6,599,536 17,800,000 6,993,251 17,800,000 Humboldt Tech Center 10,634,891 w/Gibraltar 11,701,097 w/Gibraltar Huntington Drive 7,153,290 7,000,000 7,448,343 8,000,000 Interlocken Office 15,567,318 14,640,000 14,819,176 14,632,000 Inverness Business Park 7,969,184 7,380,000 8,374,790 7,550,000 Junction Business Park 10,939,067 12,300,000 14,042,716 11,380,000 Manhattan Towers 52,083,719 38,400,000 49,939,771 23,053,000 Metro Business Park III 8,505,453 9,280,000 9,712,150 9,900,000 Northpointe B 2,928,950 6,300,000 3,018,990 5,869,000 Northpointe C 4,157,358 see B 4,068,133 see B Northview Bus. Ctr/Whitney Jordan 25,431,753 22,555,000 23,537,795 22,250,000 President's Plaza 3,084,069 2,880,000 3,137,810 2,375,000 Skyway Business Center 2,919,210 2,230,000 2,563,524 2,100,000 Southeast Comm. Ctr/Ben White 1,938,681 1,830,000 2,238,482 1,800,000 Spring Valley Business Center 9,906,927 9,300,000 10,976,614 9,250,000 Stewart Plaza 8,213,318 6,300,000 7,702,968 6,085,000 Summit Park 10,424,182 8,700,000 9,749,727 8,638,000 Washington Business Park 9,480,859 9,980,000 10,783,440 9,250,000 WESTCORE TOTAL 401,128,248 357,034,000 391,977,883 332,693,000 [CHASE LOGO] 57 60 APPENDIX B PRECEDENT TRANSACTIONS [CHASE LOGO] 58 61 PROJECT FLEX PRECEDENT TRANSACTIONS - -------------------------------------------------------------------------------- ($ in millions except per share data) ANNOUNCED DATE/ ACQUIRER / REIT OFFER EQUITY TRANSACTION COMPLETED DATE TARGET SECTOR PRICE/SHARE CONSIDERATION VALUE VALUE - -------------- ------ ------ ----------- ------------- ------- ----------- LBO TRANSACTIONS 09/24/1999 OLYMPUS MULTI-FAMILY $ 23.06 CASH / STOCK $ 694.0 $1,722.5 02/29/2000 WALDEN RESIDENTIAL PROPERTIES 04/05/1999 SHP HOTEL REIT $ 10.38 CASH $ 407.4 $ 839.8 11/22/1999 SUNSTONE HOTEL 03/04/1999 WHITEHALL, BLACKSTONE MULTI-FAMILY $ 12.25 CASH $ 654.9 $1,258.9 10/15/1999 BERKSHIRE REALTY CO. 01/01/1998 TIC ACQUISITION MULTI-FAMILY $ 34.00 CASH $1,536.9 $2,476.6 06/08/1999 IRVINE APARTMENT COMMUNITIES OFFICE INDUSTRIAL 06/16/1999 STARWOOD FINANCIAL TRUST OFFICE/INDUST $ 27.60 STOCK $ 893.3 $1,649.4 11/04/1999 TRINET CORPORATE REALTY 03/01/1999 DUKE REALTY OFFICE / IND $ 30.10 STOCK / ASSUMED DEBT $ 816.7 $1,724.7 06/18/1999 WEEKS CORP. 11/17/1998 PROLOGIS TRUST INDUSTRIAL $ 23.59 CASH / STOCK $ 822.5 $1,426.4 03/30/1999 MERIDIAN INDUSTRIAL TRUST 07/09/1998 RECKSON ASSOCIATES/METROPOLITAN MIXED $ 21.51 CASH / STOCK $ 398.8 $ 724.3 05/24/1999 TOWER REALTY 12/23/1997 HIGHWOODS PROPERTIES INC MIXED $ 65.00 CASH / STOCK $ 314.2 $ 533.2 07/14/1998 J.C. NICHOLS COMPANY 04/29/1996 HIGHWOODS PROPERTIES INC OFFICE INDUSTRIAL $ 11.02 CASH $ 296.7 $ 540.0 09/06/1996 CROCKER REALTY TRUST PREMIUM/(DISCOUNT) PAID: TRANSACTION AT ANNOUNCEMENT VALUE/ ------------------------------- ANNOUNCED DATE/ PRICE/ FORWARD PRIOR PRIOR 52-WEEK COMPLETED DATE FORWARD FFO(1) EBITDA(1) 5-DAYS 20-DAYS HIGH - ----------------- ------------- ----------- ------- ------- -------- LBO TRANSACTIONS 09/24/1999 8.6x 10.8x 21.4% 26.8% 0.0% 02/29/2000 04/05/1999 7.1x 9.1x 45.6% 35.0% (36.4)% 11/22/1999 03/04/1999 9.6x NA 31.5% 27.3% (0.5)% 10/15/1999 01/01/1998 12.9x 14.1x 25.3% 28.0% 5.6% 06/08/1999 OFFICE INDUSTRIAL 06/16/1999 7.2x 10.6x (5.0)% (0.5)% (6.0)% 11/04/1999 03/01/1999 9.6x N/A 15.2% 11.0% (0.1)% 06/18/1999 11/17/1998 10.5x 12.3x 8.4% 2.8% (11.4)% 03/30/1999 07/09/1998 9.6x NA (3.9)% 0.9% (9.2)% 05/24/1999 12/23/1997 11.9x 12.3x 16.1% 25.0% (7.1)% 07/14/1998 04/29/1996 12.7x NA 11.6% 17.5% 7.5% 09/06/1996 High 12.9 x 14.1 x 45.6% 35.0% 7.5% Mean 10.3 x 11.0 x 17.2% 18.6% (6.0)% Median 10.1 x 12.3 x 16.1% 25.0% (6.6)% Low 7.1 x 9.1 x (5.0)% (0.5)% (36.4)% Notes: (1) Based on consensus estimates; 12-month forward from date of announcement. [CHASE LOGO] 59 62 APPENDIX C PUBLIC COMPANY COMPARABLES [CHASE LOGO] 60 63 PROJECT FLEX PUBLIC COMPANY COMPARABLES - -------------------------------------------------------------------------------- SELECTED OFFICE & INDUSTRIAL REITS: MARKET INFORMATION 4/28/00 52-WEEK % OF EQUITY TOTAL SHARE -------------------- 52-WEEK MARKET MARKET COMPANY PRICE HIGH LOW HIGH VALUE(1) CAPITALIZATION(2) - ------- ----- ---- --- -------- -------- ---------------- Bedford Property Investors $ 17.63 $ 18.44 $ 15.63 95.6% $ 347.8 $ 691.8 Brandywine Realty Trust 17.38 20.44 14.75 85.0% 665.8 1,818.4 EastGroup Properties Inc. 20.81 21.88 16.25 95.1% 324.9 681.7 PS Business Parks 22.06 26.38 19.88 83.6% 681.2 773.3 Keystone Properties Trust 12.50 17.00 12.38 73.5% 205.2 892.0 Pacific Gulf Properties 21.50 23.44 19.25 91.7% 504.1 922.5 American Industrial Properties(7) 12.50 15.00 10.06 83.3% 261.9 596.8 Average $ 454.8 $ 963.3 Median $ 426.0 $ 832.6 AGGREGATE VALUE/ DEBT-TO- NET ASSET VALUE PRICE/FFO(4) EBITDA(5) TOTAL MARKET ------------------------ ----------------- ---------------------- COMPANY CAPITALIZATION SHARE(3) PREM./DISC. 2000E 2001E 2000E 2001E - ------- -------------- -------- ----------- ----------------- ----- ----- Bedford Property Investors 49.7% $ 19.81 (11.0)% 7.8x NA 10.2x NA Brandywine Realty Trust 50.2% 23.24 (25.2)% 6.7x 6.2 10.1x 9.9 EastGroup Properties Inc. 35.7% 22.29 (6.6)% 8.3x 7.5 10.2x NA PS Business Parks 4.8% 25.37 (13.0)% 8.2x NA 8.3x NA Keystone Properties Trust 61.9% 16.00 (21.9)% 6.7x 6.3 10.7x 11.4 Pacific Gulf Properties 45.3% 24.00 (10.4)% 8.0x 7.4 NA NA American Industrial Properties(7) 56.1% 14.76(8) (15.3)% 8.1x NA 10.4x 11.5 Average 41.3% (14.7)% 7.6x 6.9x 9.9x 10.7x Median 47.5% (12.0)% 7.9x 6.9x 10.2x 10.7x 2000E PAYOUT RATIO 5-YR FFO -------------------- DIVIDEND GROWTH COMPANY FFO AFFO YIELD RATE(6) - ------- --- ---- ----- ------- Bedford Property Investors 74% 82% 9.5% 11.3% Brandywine Realty Trust 62% 73% 9.2% 8.8% EastGroup Properties Inc. 55% 66% 7.3% 8.5% PS Business Parks 54% 64% 6.6% 9.7% Keystone Properties Trust 63% 73% 9.4% 6.3% Pacific Gulf Properties 64% 67% 8.0% 10.0% American Industrial Properties(7) 57% 84% 7.0% NA Average 62% 71% 8.3% 9.1% Median 63% 70% 8.6% 9.3% Notes: (1) Includes common shares, common share equivalents (excluding options) and operating partnership units. (2) Equals the sum of equity market value (fully diluted), debt outstanding and preferred stock at liquidation preference. (3) Estimates from Realty Stock Review (March 27, 2000) or Green Street Advisors. (4) Estimates from First Call as of April 04, 2000. (5) Aggregate Value is Total Market Capitalization less Cash and Cash Equivalents. EBITDA estimates from analyst reports. (6) First Call consensus estimates as of April 04, 2000. (7) Based on public market information and management projections; assumes 8% EBITDA growth 2000E to 2001E (8) CSI midpoint estimate (excluding transaction expenses) [CHASE LOGO] 61 64 APPENDIX D SALES COMPARABLES [CHASE LOGO] 62 65 PROJECT FLEX SALES COMPARABLES: ARIZONA - -------------------------------------------------------------------------------- Address Seller Buyer Date of Sale Sales Price ------- ------ ----- ------------ ----------- Airport Tech Center Werdin Development Corporation Carlyle Airport Tech Trust 07/01/99 $18,065,047 4127-4129 E Van Buren Street Phoenix, Arizona Quadson Kryene (3 buildings) Krene Associates, LLC Carl Greenwod 06/01/99 $13,797,141 7910-8150 S. Kyrene Road Tempe, Maricopa County, Arizona Ford Motor Credit Voit Superstition Springs Phase Bdford Property Investors, 06/01/99 $ 7,385,000 1355 S. Clearview Avenue 50 Inc. Mesa, Arizona Foothills Corporate Center Foothills Corporate Center SDC Foothills, Inc. 04/01/99 $12,300,000 14415 S 50th Street Phoenix, Maricopa County, Arizona Motion Systems SB 910 LLC Motion Systems LC 03/01/99 $ 6,188,050 3402 E. University Drive Phoenix, Arizona Radyne/Comstream OMB Development LLC Arnold Phoenix Southbank 02/01/99 $ 7,000,000 3138 E. Elwood Street LLC Phoenix, Arizona Tri Star Computers Quads 345 LLC Eastquads 3832 LLC 02/01/99 $ 5,000,000 3832 E Watkins Street Phoenix, Arizona Intesys Intesys Technologies, Inc Gilbert Plastic LLC 02/01/99 $22,500,000 1300 N. Fiesta Boulevard Gilbert, Marcopa County, Arizona Radyne OMB Development LLC Arnold Phoenix Southbank 02/01/99 $ 7,000,000 3138 E. Elwood Street LLC Phoenix, Arizona 1150 West Grove Parkway Plumwood Realty Partners Grove Gateway Montrose, Inc 12/01/98 $13,538,399 Tempe, Arizona 8140-8160 S. Hardy Drive Plumcor Realty Investors Gateway Montrose, Inc 11/01/98 $21,271,414 Tempe, Marcopa County, Arizona Ryan Southbank - Phase II Ryan Southbank II LLC A&B Properties 10/01/98 $14,534,618 3255 E. Elwood Street Phoenix, Arizona Golden Genesis Acoma Properties Mobile Inn Associates 09/01/98 $ 6,919,150 7812 E Acoma Drive Scottsdale, Maricopa County, Arizona Koll Townley Principal Mutual Life Insurance Transwestern Koll 06/01/98 $ 9,812,894 8804-36 N 23rd Avenue Co. Townley LLC Phoenix, Maricopa County, Arizona Demuro Corporate Square Samuel DeMuro Marial Trust University Corporate 05/01/98 $ 7,650,000 1505-1575 W. University Dr. Square Associates Tempe, Arizona Phoenix Metro Tech Center Verde Investments, Inc. Birtcher Senior Properties, 02/01/98 $13,500,000 8260-8650 N. 22nd Avenue Ltd. Phoenix, Maricopa County, Arizona Building Sales Net Operating Percentage of Address Year Built Square Feet Price/sf Income NOI/SF OAR Office ------- ---------- ----------- -------- ------------- ------ --- ------------- Airport Tech Center 1999 194,624 $ 92.82 N/A N/A N/A N/A 4127-4129 E Van Buren Street Phoenix, Arizona Quadson Kryene (3 buildings) 1998 154,917 $ 89.06 $1,268,577.00 $ 8.19 9.19% 30-100% 7910-8150 S. Kyrene Road Tempe, Maricopa County, Arizona Ford Motor Credit 1996 57,193 $129.12 $ 680,579.00 $ 11.90 9.22% N/A 1355 S. Clearview Avenue Mesa, Arizona Foothills Corporate Center 1998 110,921 $110.89 $1,084,443.00 $ 9.78 8.82% 100.00% 14415 S 50th Street Phoenix, Maricopa County, Arizona Motion Systems 1998 79,846 $ 77.50 N/A #VALUE! N/A N/A 3402 E. University Drive Phoenix, Arizona Radyne/Comstream 1998 77,155 $ 90.73 $ 622,276 $ 8.07 8.89% 20.00% 3138 E. Elwood Street Phoenix, Arizona Tri Star Computers 1996 50,000 $100.00 $ 460,000.00 $ 9.20 9.20% 10.00% 3832 E Watkins Street Phoenix, Arizona Intesys 1997 249,370 $ 90.23 $2,205,245.00 $ 8.84 9.80% 20.00% 1300 N. Fiesta Boulevard Gilbert, Marcopa County, Arizona Radyne 1998 77,155 $ 90.73 $ 594,514.00 $ 7.71 8.49% 20.00% 3138 E. Elwood Street Phoenix, Arizona 1150 West Grove Parkway 1997 103,584 $130.70 $1,218,456.00 $ 11.76 9.00% 100.00% Tempe, Arizona 8140-8160 S. Hardy Drive 1997 156,714 $135.73 $1,813,670.00 $ 11.57 8.53% 100.00% Tempe, Marcopa County, Arizona Ryan Southbank - Phase II 1997 120,778 $120.34 $1,347,825.00 $ 11.16 9.27% 100.00% 3255 E. Elwood Street Phoenix, Arizona Golden Genesis 1998 73,600 $ 94.01 $ 613,826 $ 8.34 8.87% 50.00% 7812 E Acoma Drive Scottsdale, Maricopa County, Arizona Koll Townley Principal 1985 121,519 $ 80.75 $ 874,118.00 $ 7.19 8.91% 87.00% 8804-36 N 23rd Avenue Phoenix, Maricopa County, Arizona Demuro Corporate Square 1985 86,759 $ 88.18 $ 722,764.00 $ 8.33 9.45% 88.00% 1505-1575 W. University Dr. Tempe, Arizona Phoenix Metro Tech Center 1984 123,658 $109.17 $1,286,166.00 $ 10.40 9.53% 95.00% 8260-8650 N. 22nd Avenue Phoenix, Maricopa County, Arizona Occupancy Multi or Single at Date of Address Tenant Sale - ------- --------------- ---------- Airport Tech Center N/A 0.00% 4127-4129 E Van Buren Street Phoenix, Arizona Quadson Kryene (3 buildings) Single tenant in 95.00% 7910-8150 S. Kyrene Road each building. Tempe, Maricopa County, Arizona Ford Motor Credit Single 100.00% 1355 S. Clearview Avenue Mesa, Arizona Foothills Corporate Center Multi 86.00% 14415 S 50th Street Phoenix, Maricopa County, Arizona Motion Systems N/A N/A 3402 E. University Drive Phoenix, Arizona Radyne/Comstream Single 100.00% 3138 E. Elwood Street Phoenix, Arizona Tri Star Computers N/A 100.00% 3832 E Watkins Street Phoenix, Arizona Intesys N/A 100.00% 1300 N. Fiesta Boulevard Gilbert, Marcopa County, Arizona Radyne Multi 100.00% 3138 E. Elwood Street Phoenix, Arizona 1150 West Grove Parkway Multi 100.00% Tempe, Arizona 8140-8160 S. Hardy Drive N/A 100.00% Tempe, Marcopa County, Arizona Ryan Southbank - Phase II Multi 100.00% 3255 E. Elwood Street Phoenix, Arizona Golden Genesis N/A 91.00% 7812 E Acoma Drive Scottsdale, Maricopa County, Arizona Koll Townley Principal Multi 73.00% 8804-36 N 23rd Avenue Phoenix, Maricopa County, Arizona Demuro Corporate Square N/A 97.50% 1505-1575 W. University Dr. Tempe, Arizona Phoenix Metro Tech Center N/A 100.00% 8260-8650 N. 22nd Avenue Phoenix, Maricopa County, Arizona 63 [CHASE LOGO] 66 PROJECT PLEX SALES COMPARABLES: CALIFORNIA - -------------------------------------------------------------------------------- Address Seller Buyer Date of Sale Sales Price Year Built ------- ------ ----- ------------ ----------- ---------- San Torras Bus.Center Anthony Richard Marques Goble Family Limited 01/14/00 $ 9,000,000 1975 2074 Walsh Avenue Partnership Santa Clare, CA 4209 Technology Drive Realty Associates Fund V RNM Technology Dr 09/17/99 $16,200,000 1985 Fremont, CA (LP) 1350 Duane Avenue Raymond Duane (LLC) Newpark Leasing Co. 09/02/99 $ 8,500,000 1966 Santa Clara, CA 551 Brown Road Brown Road Corporation (et Balch Enterprises, Inc. 08/13/99 $ 7,386,500 1999 Fremont, CA al) 47800 Fremont Boulevard Xiang Tu Ren Balch Enterprises, Inc. 08/10/99 $ 4,050,000 1998 Fremont, CA Middlefield-Bernardo R&D Middlefield-Bernardo Assoc. Lincoln-Whitehall 08/06/99 $31,780,000 1977 Park (LLC) Pacific (LLC) 825 E. Middlefield Road Mountain View, CA Koll Executive Plaza N/A N/A 08/01/99 $32,325,000 1975, 1982 3400 Torrance Boulevard 3828 W. Carson Street Torrance, CA Fremont Business Center SDC Fremont Business Centers, Lincoln-Whitehall 07/09/99 $18,700,000 1986 5640 Stewart Avenue Pacific (LLC) Fremont, CA Gateway Towers N/A N/A 06/01/99 $56,227,500 1984, 1987 970, 990 W. 190th Street Torrance Adjacent, CA Salvation Army N/A N/A 06/01/99 $26,400,000 1982 180 East Ocean Boulevard Long Beach, CA Coronado/Stender Bus. SI Hahn (LLC) RREEF USA Fund - III 04/13/99 $33,250,000 1974 2902, 2972 Stender Way Santa Clara, CA 2040 Ringwood Avenue Ringwood Ventures (et al) U.S. Small Business 03/19/99 $ 4,100,000 1981 San Jose, CA Admin. 1971 N. Capitol Avenue Adams Capital Management Horton 1971 N. Capitol 03/05/99 $ 4,600,000 1981 San Jose, CA Co. Invs (LLC) 2575 Augustine Drive Augustine Partners (LLC) Digital Equipment 02/25/99 $11,000,000 1985 Santa Clara, CA Corp. 1249 Reamwood Avenue Tasman V LLC M/M James R. & Jane 01/29/99 $10,800,000 1973 Sunnyvale, CA M. Bancroft Mission Plaza Limar Realty Corp. #31 CarrAmerica Realty 01/28/99 $12,585,000 1985 2240-2280 Agnew Road Group Santa Clara, CA 7015, 7151 Gateway AIP-Gateway, Inc. WHLNF Real Estate 01/19/99 $20,750,000 1998 Boulevard Partnership Newark, CA 14600, 14850 Catalina Street 91 Drumm Associates Delta 88 (LP) (et al) 01/08/99 $ 5,425,000 1984 San Leandro, CA Occupancy Building Sales Net Operating Percentage of Multi or Single at Date of Address Square Feet Price/sf Income NOI/SF OAR Office Tenant Sale ------- ----------- -------- ------------- ------ --- ------------- --------------- ---------- San Torras Bus.Center 79,865 $112.69 $939,280.00 $12 10.44% 60% Multi 94% 2074 Walsh Avenue Santa Clare, CA 4209 Technology Drive 167,780 $ 96.56 N/A N/A N/A 70% N/A N/A Fremont, CA 1350 Duane Avenue 116,000 $ 73.28 N/A N/A N/A 25% Single 40% Santa Clara, CA 551 Brown Road 88,516 $ 83.45 N/A N/A N/A 2% Single N/A Fremont, CA 47800 Fremont Boulevard 33,161 $122.13 N/A N/A N/A N/A N/A 0% Fremont, CA Middlefield-Bernardo R&D 171,784 $185.00 N/A N/A 9.30% 60% Multi 100% Park 825 E. Middlefield Road Mountain View, CA Koll Executive Plaza 343,130 $ 94.21 N/A N/A 9.99% N/A N/A 89% 3400 Torrance Boulevard 3828 W. Carson Street Torrance, CA Fremont Business Center 184,074 $101.59 N/A N/A 9.10% 15% N/A 100% 5640 Stewart Avenue Fremont, CA Gateway Towers 452,438 $124.28 N/A N/A 9.50% N/A N/A 96% 970, 990 W. 190th Street Torrance Adjacent, CA Salvation Army 199,156 $132.56 N/A N/A N/A N/A N/A 42% 180 East Ocean Boulevard Long Beach, CA Coronado/Stender Bus. 227,600 $146.09 $2,088,546 $ 9 6.28% 65% Multi 100% 2902, 2972 Stender Way Santa Clara, CA 2040 Ringwood Avenue 39,652 $103.40 $ 531,591 $13 12.97% 15% Single 0% San Jose, CA 1971 N. Capitol Avenue 30,056 $153.05 N/A N/A 9.00% 73% Multi 100% San Jose, CA 2575 Augustine Drive 55,000 $200.00 $1,080,750 $20 9.83% 99% Single 0% Santa Clara, CA 1249 Reamwood Avenue 95,000 $113.68 N/A N/A 9.00% 60% Multi 100% Sunnyvale, CA Mission Plaza 101,700 $123.75 N/A N/A 8.60% 91% Multi 100% 2240-2280 Agnew Road Santa Clara, CA 7015, 7151 Gateway 170,000 $122.06 N/A N/A N/A 60% N/A N/A Boulevard Newark, CA 14600, 14850 Catalina Street 46,080 $117.73 N/A N/A 9.32% 100% N/A N/A San Leandro, CA 64 [CHASE LOGO] 67 PROJECT FLEX SALES COMPARABLES: COLORADO - -------------------------------------------------------------------------------- ADDRESS SELLER BUYER DATE OF SALE SALES PRICE ------- ------ ----- ------------ ----------- 12421 W. 49th Avenue Irene E. Yanker (Trust) Ward West Investments 03/01/99 $ 3,400,000 Wheat Ridge, CO Bldg. No. 3 1300-1390 S. Potomac St Transwestern East By Southeast Teachers Ins Annuity 09/02/99 $ 9,760,000 Aurora, CO (LLC) Assoc. Am 1640 Range Street SRG LLC Galdor Realty Corporation 02/01/99 $ 1,375,000 Boulder, CO 3502 E. Boulder Street Mckenzie Engineering, Inc. Gary Lee Erickson (et al) 06/18/98 $ 525,000 Colorado Springs, CO 450 Courtney Way Hickey Hickey Holdings (LLC) Lafayette Tech Center 11/03/99 $ 1,509,076 Lafayette, CO (LLC) 4630 Forge Road WHB Properties II (LLC) Gamkor LLLP 10/01/98 $ 2,217,000 Colorado Springs, CO 4800 E. Dry Creek Road Dry Creek Trade (LLC) Alliant Techsystems, Inc. 01/25/00 $ 7,700,000 Littleton, CO 4950 E. 41st Avenue RTK Micro Data (LLC) Network Courier Service 08/01/99 $ 335,000 4950 East 41st Avenue Inc. Denver, CO 7000 S. Potomac Street Quaise Realty II (LLC) Wedel Colo (LLC) 12/17/99 $ 1,527,500 Englewood, CO Canal Place Jeff W. Polacek Tenbar, Inc. 09/01/99 $ 1,275,000 2305 S. Syracuse Way Denver, CO Fountainhead Business Center Parade (LLC) (et al) First Industrial (LP) 05/03/99 $ 1,375,000 10691 E. Bethany Drive Aurora, CO BUILDING SALES NET OPERATING ADDRESS YEAR BUILT SQUARE FEET PRICE/SF INCOME NOI/SF OAR ------- ---------- ----------- -------- ------------- ------ --- 12421 W. 49th Avenue 1984 55,000 $ 61.82 N/A N/A N/A Wheat Ridge, CO 1300-1390 S. Potomac St 1980 145,000 $ 67.31 N/A N/A 8.00% Aurora, CO 1640 Range Street 1981 13,455 $ 102.19 $ 134,063 $ 9.96 9.75% Boulder, CO 3502 E. Boulder Street 1984 8,759 $ 59.94 N/A N/A N/A Colorado Springs, CO 450 Courtney Way 1999 16,750 $ 90.09 N/A N/A 10.00% Lafayette, CO 4630 Forge Road 1997 34,547 $ 64.17 $ 221,578 $ 6.41 9.99% Colorado Springs, CO 4800 E. Dry Creek Road 1958 265,428 $ 29.01 N/A N/A 11.00% Littleton, CO 4950 E. 41st Avenue 1982 7,000 $ 47.88 N/A N/A N/A 4950 East 41st Avenue Denver, CO 7000 S. Potomac Street 1983 19,622 $ 77.85 N/A N/A N/A Englewood, CO Canal Place 1982 20,250 $ 62.96 N/A N/A N/A 2305 S. Syracuse Way Denver, CO Fountainhead Business Center 1979 25,216 $ 54.53 $ 158,125 $ 6.27 11.50% 10691 E. Bethany Drive Aurora, CO PERCENTAGE OF MULTI OR SINGLE AT DATE OF ADDRESS OFFICE TENANT SALE ------- ------------- --------------- ---------- 12421 W. 49th Avenue 50% Multi N/A Wheat Ridge, CO 1300-1390 S. Potomac St 60% Multi 90% Aurora, CO 1640 Range Street 90% N/A 100% Boulder, CO 3502 E. Boulder Street N/A Single N/A Colorado Springs, CO 450 Courtney Way 100% Multi 62% Lafayette, CO 4630 Forge Road 50% Multi N/A Colorado Springs, CO 4800 E. Dry Creek Road N/A Multi 74% Littleton, CO 4950 E. 41st Avenue 50% N/A N/A 4950 East 41st Avenue Denver, CO 7000 S. Potomac Street N/A Single N/A Englewood, CO Canal Place 67% Multi 0% 2305 S. Syracuse Way Denver, CO Fountainhead Business Center 100% Multi 100% 10691 E. Bethany Drive Aurora, CO [CHASE LOGO] 65 68 PROJECT FLEX SALES COMPARABLES: TEXAS - -------------------------------------------------------------------------------- Address Seller Buyer Date of Sale Sales Price Year Built - ------- ------ ----- ------------ ----------- ---------- 10605 Delta Drive N/A N/A 09/11/99 N/A 1980 Austin, Texas Freeport Office Center I & II Cardinal Esters Freeports, AFP Associates, Ltd. 10/15/98 $ 20,153,000 1997 4650 Regent Boulevard Inc. Irving, TX Dallas Rapp Collins Worldwide Kreg SW (LP) Allianz Life Ins. Co of 07/02/98 $ 12,943,000 1998 1660 Westridge Circle North No. America Irving, TX Dallas Federal Express Dienna Simkins N/A 10/01/98 $ 12,000,000 1998 17855 JFK Parkway Houston, Texas Waterford A, B & C Waterford Sage HP (Ltd.) TPLP Office Park 01/19/99- $ 11,649,096 1998/1999 9215, 9233 & 9229 Waterford Properties 05/29/99 Centre Boulevard (3 Bldgs.) Austin, TX University Business Park UBC, Ltd. Devane Realty LLC 06/02/99 $ 9,688,320 1986 3019 Alvin DeVane Blvd (Sentinel Real Estate) Austin, TX Travis MetaSolv Crin-Plano I (LP) Paragon Legacy 09/17/98 $ 9,000,000 1988 5560 Tennyson Parkway Associates (Ltd) Plano, TX Plano Plano Braker Center II Equitable Life Assurance CFH-FTAX Limited 12/28/98 $ 8,667,667 1989 11101 Metric Boulevard Society Partnership Austin, Texas 1800-1808 10th Street Miramar Development LP Cabot Industrial 06/11/98 $ 8,375,000 1997 Plano, Texas Properties Collin County 4333 Cambridge Road Schmid-Moulton Parkway East Bay Co., Inc. 08/27/98 $ 8,230,000 1986 Fort Worth, TX (Ltd) NEC Building Midway NEC LP N/A 03/01/98 $ 8,000,000 1998 3100 Promenade Drove Stafford, Fort Bend County, Texas Ryder Trucking N/A N/A 08/27/99 $ 7,934,000 1980 2551 Yeltson Drive Road Rock, Texas 1520 Luna Road CIIF Associates IPERS Valwest 06/15/98 $ 7,800,000 1997 Carrollton, Texas Business Park Dallas County 14801 Sovereign Road Metropolitan Life Insurance Estate of James 11/01/98 $ 7,738,730 1989 Fort Worth, Texas Company Campbell Adams Laboratory Estate of James Campbell Metropolitan Life 11/17/98 $ 7,738,730 1989 14801 Sovereign Road (et al) Insurance Co. Fort Worth, TX Freeport/Royal Trade Center DFW Freeport/Royal Trade Langer US 03/13/98 $ 7,210,000 1997 8600 W. Royal Lane Ctr JV Investments Irving, TX 955 Freeport Parkway Catellus Development Gateway Corporate 08/09/99 $ 6,304,158 1999 Coppell, Texas Corporation Centers Dallas County Building Sales Net Operating Percentage of Multi or Single Square Feet Price/sf Income NOI/SF OAR Office Tenant ----------- ---------- ----------- ----------- ----- -------------- ------------ 10605 Delta Drive 173,004 N/A $ -- N/A 9.90% 2 buildings N/A Austin, Texas (8.2% & 75%, respectively) Freeport Office Center I & II 40,000 $ 125.96 $ 1,902,400 $ 47.56 9.44% N/A N/A 4650 Regent Boulevard Irving, TX Rapp Collins Worldwide 101,163 $ 127.94 $ 1,129,991 $ 11.17 8.73% N/A Single 1660 Westridge Circle North Irving, TX Dallas Federal Express 135,000 $ 88.89 $ 1,050,000 $ 7.78 8.75% 7.40% Single 17855 JFK Parkway Houston, Texas Waterford A, B & C 105,698 $ 110.21 $ 1,023,685 $ 9.68 8.79% 100.00% N/A 9215, 9233 & 9229 Waterford Centre Boulevard Austin, TX University Business Park 107,648 $ 90.00 $ 917,699 $ 8.52 9.47% 89.00% Multi 3019 Alvin DeVane Blvd Austin, TX Travis MetaSolv 52,000 $ 161.54 $ 884,000 $ 17.00 10.52% N/A N/A 5560 Tennyson Parkway Plano, TX Plano Braker Center II 102,285 $971,529.00 $ 9.50 11.20% N/A Multi 11101 Metric Boulevard Austin, Texas 1800-1808 10th Street 208,800 $ 40.11 $737,550.00 $ 3.53 8.81% 11.00% Multi Plano, Texas Collin County 4333 Cambridge Road 139,250 $ 59.10 $ 776,101 $ 5.57 9.43% 90.00% Multi Fort Worth, TX NEC Building 124,702 $ 64.15 $ 698,037 $ 5.60 8.73% 30.00% Single 3100 Promenade Drove Stafford, Fort Bend County, Texas Ryder Trucking 148,000 $ 53.61 N/A N/A $ 10.89 N/A Single 2551 Yeltson Drive Road Rock, Texas 1520 Luna Road 201,620 $ 38.69 $683,540.00 $ 3.39 8.75% N/A Multi Carrollton, Texas Dallas County 14801 Sovereign Road 212,012 $ 36.50 $698,567.00 $ 3.29 9.03% N/A Single Fort Worth, Texas Adams Laboratory 212,020 $ 36.50 N/A N/A 9.30% 5.00% Multi 14801 Sovereign Road Fort Worth, TX Freeport/Royal Trade Center 106,500 $ 67.70 $ 604,137 $ 5.67 8.38% 43.00% Multi 8600 W. Royal Lane Irving, TX 955 Freeport Parkway 150,099 $ 42.00 $565,376.00 $ 3.77 8.97% N/A Multi Coppell, Texas Dallas County Occupancy at Date of Sale ---------- 10605 Delta Drive 100% Austin, Texas Freeport Office Center I & II 88% 4650 Regent Boulevard Irving, TX Rapp Collins Worldwide 100% 1660 Westridge Circle North Irving, TX Dallas Federal Express 100% 17855 JFK Parkway Houston, Texas Waterford A, B & C 100% 9215, 9233 & 9229 Waterford Centre Boulevard Austin, TX University Business Park 100% 3019 Alvin DeVane Blvd Austin, TX Travis MetaSolv 100% 5560 Tennyson Parkway Plano, TX Plano Braker Center II 100% 11101 Metric Boulevard Austin, Texas 1800-1808 10th Street 88% Plano, Texas Collin County 4333 Cambridge Road N/A Fort Worth, TX NEC Building 100% 3100 Promenade Drove Stafford, Fort Bend County, Texas Ryder Trucking 100% 2551 Yeltson Drive Road Rock, Texas 1520 Luna Road 100% Carrollton, Texas Dallas County 14801 Sovereign Road 69% Fort Worth, Texas Adams Laboratory 67% 14801 Sovereign Road Fort Worth, TX Freeport/Royal Trade Center 100% 8600 W. Royal Lane Irving, TX 955 Freeport Parkway 63% Coppell, Texas Dallas County 66 [CHASE LOGO] 69 PROJECT FLEX SALES COMPARABLES: TEXAS - -------------------------------------------------------------------------------- Address Seller Buyer Date of Sale Sales Price - ------- ------ ----- ------------ ------------ Raytheon Building T/E Waterview (Ltd) Smith/Allen Matuschka 03/31/98 $ 6,250,000 17217 Waterview Parkway One Dallas, Texas 2880 North SH 360 360 Registry Ltd. P.J. Food Services 08/01/98 $ 5,664,000 Grand Prairie, Texas Tarrant County Collin Creek II Bus. Center Cabot Industrial Properties Coll-Partners L.P. 07/30/99 $ 4,850,000 820-860 Avenue F (LP) Plano, TX West Loop Bus. Park No. 11 Prentiss Properties Moody Rambin 07/01/98 $ 4,701,938 1214 North Post Oak Road Acquisition Partners, LP Interests Houston, Harris County, TX 11406 Merrick Boulevard N/A N/A 01/01/99 $ 4,700,000 Austin, Texas 3241-3249 S.W. Story Road Cathedral Ocotillo (LP) MIT Unsecured (LP) 12/20/99 $ 4,360,000 Irving, TX Epsilon Texas 24120 Gateway (Ltd) T/E Gateway 2410 07/16/99 $ 4,100,000 2410 Gateway Drive (Ltd) Irving, TX Dallas Level 3 Communications N/A N/A 09/12/99 $ 3,700,000 4207 Smith School Road Austin, TX Addison Tech Center AMB Property II L.P. Addison Jack Ltd. 08/12/98 $ 3,595,000 3799-3801 Realty Road Dallas, TX Valpark Place Dorbet, Inc. Forest Abrams Place 12/04/98 $ 3,445,000 1335, 1345 Valwood Parkway Ltd Carrollton, Dallas County, TX Exchange Business Park MIT Unsecured L.P. Exchange/Summit 03/18/98 $ 3,325,000 624 Krona Drive Associates Plano, TX 1900 Diplomat Drive Cabot Industrial Properties PFP Texas Industrial, 01/28/99 $ 3,250,000 Farmers Branch, TX L.P. Inc. 2270, 2290 Springlake Road Great Oak LLC MTGRP Investors L.P. 09/29/98 $ 3,200,000 Farmers Branch, TX Royal Park MTGRP Investors (LP) Great Oak (LLC) 09/29/98 $ 3,200,000 2270-2290 Springlake Road Branch, TX Dallas 8065 Trister Drive Vantage Development #10, Jefferson-Pllot Life 04/01/99 $ 2,875,000 Irving, TX Inc. Insurance West Tech Business Center West Tech Business Center, Teachers Insurance 09/11/98 $ 2,786,250 6901-6999 Alamo Downs Ltd. and Annuity Parkway Association of America San Antonio, TX Building Sales Net Operating Address Year Built Square Feet Price/Sf Income NOI/SF OAR - ------- ---------- ----------- -------- ------------- ------ ------ Raytheon Building 1985 96,950 $ 64.47 $ 705,311 $ 7.27 11.28% 17217 Waterview Parkway Dallas, Texas 2880 North SH 360 1997 176,960 $ 32.01 $ 583,092.00 $ 3.30 10.29% Grand Prairie, Texas Tarrant County Collin Creek II Bus. Center 1984 74,145 $ 65.41 N/A N/A 11.00% 820-860 Avenue F Plano, TX West Loop Bus. Park No. 11 1984 75,231 $ 62.50 $ 463,141 $ 6.16 9.85% 1214 North Post Oak Road Houston, Harris County, TX 11406 Merrick Boulevard 1990 86,916 $ 54.08 N/A N/A N/A Austin, Texas 3241-3249 S.W. Story Road 1981 99,563 $ 43.79 $ 414,724 $ 4.17 9.51% Irving, TX Epsilon 1983 43,000 $ 95.35 $ 381,410 $ 8.87 9.30% 2410 Gateway Drive Irving, TX Dallas Level 3 Communications 1985 71,558 $ 51.71 N/A N/A N/A 4207 Smith School Road Austin, TX Addison Tech Center 1981 74,384 $ 48.33 N/A N/A N/A 3799-3801 Realty Road Dallas, TX Valpark Place 1981 67,309 $ 51.18 $ 337,891 $ 5.02 N/A 1335, 1345 Valwood Parkway Carrollton, Dallas County, TX Exchange Business Park 1986 45,975 $ 72.32 N/A N/A N/A 624 Krona Drive Plano, TX 1900 Diplomat Drive 1983 82,492 $ 39.40 N/A N/A 9.70% Farmers Branch, TX 2270, 2290 Springlake Road 1985 60,661 $ 52.75 N/A N/A 10.00% Farmers Branch, TX Royal Park 1985 60,661 $ 52.75 $ 320,000 $ 5.28 10.00% 2270-2290 Springlake Road Branch, TX Dallas 8065 Trister Drive 1997 61,308 $ 46.89 $ 260,352.00 $ 4.25 9.06% Irving, TX West Tech Business Center 1983 56,525 $ 49.29 N/A N/A N/A 6901-6999 Alamo Downs Parkway San Antonio, TX Occupancy Percentage of Multi or Single at Date of Address Office Tenant Sale - ------- ------------- --------------- ---------- Raytheon Building N/A Single 100% 17217 Waterview Parkway Dallas, Texas 2880 North SH 360 N/A Multi 0% Grand Prairie, Texas Tarrant County Collin Creek II Bus. Center 90.00% Multi 100% 820-860 Avenue F Plano, TX West Loop Bus. Park No. 11 95.00% N/A 95% 1214 North Post Oak Road Houston, Harris County, TX 11406 Merrick Boulevard 21.00% N/A 80% Austin, Texas 3241-3249 S.W. Story Road 57.00% Multi 97.7% Irving, TX Epsilon N/A Single 100% 2410 Gateway Drive Irving, TX Dallas Level 3 Communications 79.00% N/A 0% 4207 Smith School Road Austin, TX Addison Tech Center 50.00% Multi 100% 3799-3801 Realty Road Dallas, TX Valpark Place N/A N/A 100% 1335, 1345 Valwood Parkway Carrollton, Dallas County, TX Exchange Business Park 40.00% Multi 100% 624 Krona Drive Plano, TX 1900 Diplomat Drive 20.00% Multi 100% Farmers Branch, TX 2270, 2290 Springlake Road 80.00% Multi 100% Farmers Branch, TX Royal Park N/A N/A 100% 2270-2290 Springlake Road Branch, TX Dallas 8065 Trister Drive N/A Single 100% Irving, TX West Tech Business Center 73% Multi 76% 6901-6999 Alamo Downs Parkway San Antonio, TX 67 [CHASE LOGO] 70 PROJECT FLEX SALES COMPARABLES: TEXAS - -------------------------------------------------------------------------------- Building Address Seller Buyer Date of Sale Sales Price Year Built Square Feet ------- ------ ----- ------------ ----------- ---------- ----------- Danka Office Imaging Co. F/S Brookhollow, LTD N/A 10/01/99 $2,650,000 1979 34,482 10130 West Gulf Bank Houston, Harris County, TX 8220-8240 Elmbrook Drive Elmbrook Corporate Rohmoos Venture 01/21/98 $2,525,000 1996 46,500 Dallas, TX Services, Inc 11004 Metric Boulevard Mercantile Fund for Bedford Property 06/01/98 $2,227,661 1982 27,322 Austin, TX Travis Telephone Investors, Inc. Real Estate Equity Trust 2720 Cullen Street Fort Worth ISD Royer & Shutts 12/14/99 $2,100,000 1987 63,384 Fort Worth, TX Commercial PES Building PES Corporation Midway Companies 10/01/99 $2,000,000 1998 25,900 445 Woodline Drive Spring, Montgomery Cty, TX 1200 E. Executive Drive Indus Partners (LTD) Blumin-Kimberly I 05/26/98 $1,911,000 1979 34,425 Richardson, Dallas County, TX (LTD) Ben White Business Center Triangle W, Inc American Industrial 03/26/98 $1,850,000 1984-85 33,529 4120 Commercial Center Properties REIT Drive, Austin, TX Congress 75 Center N/A N/A 06/12/98 $1,762,500 1987 41,354 4030 South Congress Austin, TX 13958 Diplomat Drive Valwood Center I. Ltd. Diplomat Development 08/25/99 $1,751,000 1999 17,015 Farmers Branch, TX Group 3227 Skylane Drive Ray C. Tucker 3227 Skylane Drive 05/07/98 $1,050,000 1984 22,691 Carrollton, Dallas County, TX (LP) MCT Building S&W Ventures Midway MCT Partners, 10/01/99 $1,000,000 1982 13,200 10801 Old Galveston Road Inc. Houston, Harris County, TX 4702 Salum Road Karim Mahmoudizard Gilster, Inc DBA 02/03/99 $ 800,000 1982 20,300 Garland, Dallas County, TX Gilster Properties Occupancy Sales Net Operating Percentage of Multi or Single at Date of Address Price/SF Income NOI/SF OAR Office Tenant Sale ------- -------- ------------- ------ --- ------------- --------------- ---------- Danka Office Imaging Co. $ 76.85 $ 276,070 $ 8.01 10.42% 93.00% N/A 100% 10130 West Gulf Bank Houston, Harris County, TX 8220-8240 Elmbrook Drive $ 54.30 $ 279,000.00 $ 6.00 11.05% N/A Multi 100% Dallas, TX 11004 Metric Boulevard $ 81.53 $ 209,948 $ 7.68 9.43% 95.00% N/A 100% Austin, TX Travis 2720 Cullen Street $ 33.13 $ 334,668 $ 5.28 10.00% 38.00% Multi N/A Fort Worth, TX PES Building $ 77.22 $ 202,005 $ 7.80 10.10% 88.40% Single 100% 445 Woodline Drive Spring, Montgomery Cty, TX 1200 E. Executive Drive $ 55.51 $ 237,360 $ 6.89 N/A N/A Multi 100% Richardson, Dallas County, TX Ben White Business Center $ 55.18 $ 177,063.00 $ 5.28 9.60% 100.00% Multi 50% 4120 Commercial Center Drive, Austin, TX Congress 75 Center $ 42.62 N/A N/A 11.00% 70.00% N/A 90% 4030 South Congress Austin, TX 13958 Diplomat Drive $102.91 $ 152,539.00 $ 8.96 8.71% 38.00% N/A 0% Farmers Branch, TX 3227 Skylane Drive $ 46.27 $ 199,286 $ 8.78 12.69% N/A N/A 100% Carrollton, Dallas County, TX MCT Building $ 75.76 $ 100,736 $ 7.63 10.07% 70.00% Single N/A 10801 Old Galveston Road Houston, Harris County, TX 4702 Salum Road $ 39.41 $ 91,350 $ 4.50 N/A N/A N/A 100% Garland, Dallas County, TX 68 [CHASE LOGO] 71 PROJECT FLEX SALES COMPARABLES: VIRGINIA - -------------------------------------------------------------------------------- Address Seller Buyer Date of Sale Sales Price ------- ------ ----- ------------ ----------- 544 Herndon Parkway Nirvana Associates W9/LWS II Real Estate LP 06/01/98 $ 9,600,000 Herndon, Fairfax County, VA 13505 & 13515 Dulles Met Life DTCD LLC (Legg Mason) 10/01/98 $ 6,850,000 Technology Drive Herndon, Fairfax County, VA 14280 Sullyfield Circle CB Commercial Warehouse Trustees of Washington 01/01/99 $ 6,840,000 Chantilly, Fairrfax County, VA Property Real Estate Atrium Building Liberty Property 418 Partnership, GP 01/01/99 $ 6,500,000 11832 Rock Landing Drive Development CP Oyster Point Business Park Newport News, VA Dulles South 4 A & B Washington R.E. Investment Cambridge Property 01/01/99 $ 6,840,000 14280-90 Sullyfield Circle Trust (WRIT) Group Chantilly, VA 5285 Port Royal Road ButeraProperties III (LLC) Trustees of WRIT 02/01/99 $ 7,031,000 Springfield, VA Indian Creek Center Savoy Trust Indian Creek Trizechahn Indian Creek 02/01/99 $ 5,100,000 44964, 45000, 45064 (LLC) (LLC) Underwood Lane Sterling, VA 3920 Stonecroft Boulevard Security Capital Industrial Principal Life Insurance 04/01/99 $ 8,600,000 Chantilly, Farifax County, VA Trust Company 4040-4080 Walney Road Sully Pinkard LLC Trustee of WRIT 04/01/99 $ 7,500,000 Chantilly, Fairfax County, VA Chantilly Distribution Center II Principal Capital Management Security Capital Industrial 04/01/99 $ 8,600,000 3920 Stonecroft Boulevard LLC Trust (ProLogis) Chantilly, VA Sully Square Washington REIT Sully Pickard LLC 04/01/99 $ 7,760,000 4040-4080 Walney Road Chantilly, VA 520 & 524 Van Buren Street Herndon Square, LLC Williams Communications 05/01/99 $ 8,063,320 Herndon, Fairfax County, VA 5775 Gen. Washington Dr. NGP Holdings II LLC 5775 General Washington 05/01/99 $ 8,100,000 Alexandria, VA Drive LP 14120-14141 Parke Long Transcontinental Realty V-Sullyfirld Properties II, 07/01/99 $14,900,000 Court Chantilly, Farifax Investors LLC County, VA Greenwich Commons Greenwich Commons LP Cornerstone Real Estate 07/01/99 $ 4,905,000 5501 Greenwich Road (Davenport Group) Advisors (Mass Mutual Virginia Beach, VA Life) Parke Long Court 3-6 V-Sullyfield Properties II LLC Transcontinental Realty 07/01/99 $15,100,000 14120-14141 Parke Long (Velsor Properties) Investors, Inc. Court Chantilly, VA Building Sales Net Operating Address Year Built Square Feet Price/sf Income ------- ---------- ----------- ------------ ---------- 544 Herndon Parkway 1985 136,250 $ 70.46 N/A Herndon, Fairfax County, VA 13505 & 13515 Dulles 1985 64,923 $ 105.51 N/A Technology Drive Herndon, Fairfax County, VA 14280 Sullyfield Circle 1987 83,078 $ 82.33 N/A Chantilly, Fairrfax County, VA Atrium Building 1988 70,552 $ 92.13 $ 634,968 11832 Rock Landing Drive Oyster Point Business Park Newport News, VA Dulles South 4 A & B 1988 83,078 $ 82.33 $ 697,000 14280-90 Sullyfield Circle Chantilly, VA 5285 Port Royal Road 1963 108,000 $ 65.10 $ 773,410 Springfield, VA Indian Creek Center 1982 97,288 $ 52.42 $ 433,500 44964, 45000, 45064 Underwood Lane Sterling, VA 3920 Stonecroft Boulevard N/A 159,644 $ 53.87 N/A Chantilly, Farifax County, VA 4040-4080 Walney Road 1985 90,841 $ 82.56 N/A Chantilly, Fairfax County, VA Chantilly Distribution Center II 1997 159,655 $ 53.87 $ 770,600 3920 Stonecroft Boulevard Chantilly, VA Sully Square 1986 95,168 $ 81.54 $ 728,000 4040-4080 Walney Road Chantilly, VA 520 & 524 Van Buren Street 1999 35,285 $ 228.52 N/A Herndon, Fairfax County, VA 5775 Gen. Washington Dr. 1991 107,320 $ 75.48 $ 1,200,000 Alexandria, VA 14120-14141 Parke Long 1988 215,009 $ 69.30 N/A Court Chantilly, Farifax County, VA Greenwich Commons 1985 54,413 $ 90.14 $ 385,730 5501 Greenwich Road Virginia Beach, VA Parke Long Court 3-6 1989 215,003 $ 70.23 $ 1,402,500 14120-14141 Parke Long Court Chantilly, VA Occupancy Percentage of Multi or Single At Date of Address NOI/SF OAR Office Tenant Sale ---------- -------- -------------- --------------- ---------- 544 Herndon Parkway N/A N/A 60.00% Single 100% Herndon, Fairfax County, VA 13505 & 13515 Dulles N/A 9.50% 100.00% Multi 100% Technology Drive Herndon, Fairfax County, VA 14280 Sullyfield Circle N/A 10.30% 70.00% Multi 100% Chantilly, Fairrfax County, VA Atrium Building $ 9.00 9.77% N/A N/A 98% 11832 Rock Landing Drive Oyster Point Business Park Newport News, VA Dulles South 4 A & B $ 8.39 10.19% 60.00% Single 100% 14280-90 Sullyfield Circle Chantilly, VA 5285 Port Royal Road $ 7.16 11.00% 15.00% Single 100% Springfield, VA Indian Creek Center $ 4.46 8.50% 30.00% Multi 100% 44964, 45000, 45064 Underwood Lane Sterling, VA 3920 Stonecroft Boulevard N/A 9.12% N/A Multi 100% Chantilly, Farifax County, VA 4040-4080 Walney Road N/A 10.00% 20.00% Multi 100% Chantilly, Fairfax County, VA Chantilly Distribution Center II $ 4.83 8.96% 11.70% Multi 100% 3920 Stonecroft Boulevard Chantilly, VA Sully Square $ 7.65 9.38% 40.00% Multi 100% 4040-4080 Walney Road Chantilly, VA 520 & 524 Van Buren Street N/A N/A 60.00% Multi 100% Herndon, Fairfax County, VA 5775 Gen. Washington Dr. $ 11.18 14.81% 7.00% Single 100% Alexandria, VA 14120-14141 Parke Long N/A 9.70% 60.00% Multi 94% Court Chantilly, Farifax County, VA Greenwich Commons $ 7.09 7.86% N/A Multi 87% 5501 Greenwich Road Virginia Beach, VA Parke Long Court 3-6 $ 6.52 9.29% 49.00% Multi 93% 14120-14141 Parke Long Court Chantilly, VA 69 [CHASE LOGO] 72 PROJECT FLEX SALES COMPARABLES: VIRGINIA - -------------------------------------------------------------------------------- Address Seller Buyer Date of Sale Sales Price - ------- ------ ----- ------------ ----------- 10400 Battleview Parkway Linden-Battlefield LLC Principal Life Insurance 08/01/99 $ 2,435,000 Manassas, VA Co. 14100 & 14101 Parke Long Principal Life Insurance Company V-Sullyfield Properties III, 11/01/99 $ 7,025,000 Court LLC Chantilly, Fairfax County, VA Parke Long Center 1 & 2 V-Sullyfield Properties III LLC Principal Life Insurance 11/01/99 $ 7,025,000 14100 & 14101 Parke Long (Velsor Properties) Co. Court Chantilly, VA 14320 & 14370 Sullyfield Transcontinental Realty Investors West Group Properties, 12/01/99 $16,500,000 Circle Chantilly, Fairfax LLC County, VA 521 Butler Farms Road Hampton Roads LLC Mongram Retailer Credit 12/01/99 $ 3,560,456 Hampton, VA Service Park @ Lafayette A Dansam International Pleasant Valley Road, LP 12/01/99 $ 1,875,000 4200 Pleasant Valley Road Chantilly, VA Sullyfield Commerce Center 1 West Coast Properties LLC Transcontinental Realty 12/01/99 $16,500,000 & 2 Investors 14320-14330 Sullyfield Circle 14340-14370 Sullyfield Circle Chantilly, VA Building Sales Net Operating Percentage of Address Year Built Square Feet Price/sf Income NOI/SF OAR Office - ------- ---------- ----------- -------- ------------- ------ --- ------------- 10400 Battleview Parkway 1987 39,773 $ 61.22 $ 267,900 $6.74 11.00% N/A Manassas, VA 14100 & 14101 Parke Long 1986 104,000 $ 67.55 N/A N/A 9.90% 66.00% Court Chantilly, Fairfax County, VA Parke Long Center 1 & 2 1987 104,170 $ 67.44 $ 685,750 $6.58 9.76% 65.00% 14100 & 14101 Parke Long Court Chantilly, VA 14320 & 14370 Sullyfield 1985 243,265 $ 67.83 N/A N/A N/A 50.00% Circle Chantilly, Fairfax County, VA 521 Butler Farms Road 1985 44,500 $ 80.01 N/A N/A N/A N/A Hampton, VA Park @ Lafayette A 1989 21,212 $ 88.39 N/A N/A N/A N/A 4200 Pleasant Valley Road Chantilly, VA Sullyfield Commerce Center 1 & 2 1986 243,276 $ 67.82 $ 1,402,500 $5.77 8.50% 30.00% 14320-14330 Sullyfield Circle 14340-14370 Sullyfield Circle Chantilly, VA Occupancy Multi or Single at Date of Address Tenant Sale - ------- --------------- ---------- 10400 Battleview Parkway Multi 100% Manassas, VA 14100 & 14101 Parke Long Multi 92% Court Chantilly, Fairfax County, VA Parke Long Center 1 & 2 Multi 95% 14100 & 14101 Parke Long Court Chantilly, VA 14320 & 14370 Sullyfield Multi 96% Circle Chantilly, Fairfax County, VA 521 Butler Farms Road N/A 100% Hampton, VA Park @ Lafayette A N/A N/A 4200 Pleasant Valley Road Chantilly, VA Sullyfield Commerce Center 1 Multitenant 98% & 2 14320-14330 Sullyfield Circle 14340-14370 Sullyfield Circle Chantilly, VA [CHASE LOGO] 70 73 PROJECT FLEX SALES COMPARABLES: OTHER - -------------------------------------------------------------------------------- Address Seller Buyer Date of Sale Sales Price ------- ------ ----- ------------ ----------- INDIANA Fortune Park Buildings 5 & 6 Connecticut Mutual Life Fortune Park Operating 05/01/98 $ 2,112,000 8755-8765 Guion Road Insurance Co. Associates, L.P. Indianapolis, Indiana MICHIGAN Cardell Corporation N/A N/A 10/01/98 $ 2,250,000 2849 Product Drive Rochester Hills, Oakland County, Michigan MASSACHUSETTS Wellington Two Preotle, Lane & Associates LTD U.S. Trust Company 05/17/99 $23,000,000 20 Cabot Road Medford, MA Two and Three University Jones Lang LaSalle GE Capital Investment 08/26/99 $44,550,000 Office Park Adv MA Hayden Woods Corporate Spaulding & Slye California State Teachers' 11/12/99 $37,000,000 Center Retirement 55 Hayden Avenue Lexington, MA 55 Middlesex Turnpike Boston Capital Partners, Inc. PSI Net Realty, Inc. 02/15/00 $14,400,000 Bedford, MA 100 Apollo Drive Fortune Wakefield LLC RREEF 03/01/00 $14,750,000 Chelmsford, MA MINNESOTA Edenvale Executive Center Equitable Edenvale Executuive LLC 10/01/99 $ 7,603,750 7600-7682 Executive Drive (Duke Weeks) Eden Prairie, Hennepin, MN Valley Gate North Sigmund Helle Edenvale Executuive LLC 11/01/99 $ 3,517,021 10025 Valley Road (Duke Weeks) Eden Prairie, Hennepin County, Minnesota Building Sales Net Operating Percentage of Address Year Built Square Feet Price/sf Income NOI/SF OAR Office ------- ---------- ----------- -------- ------------- ------ --- ------------- INDIANA Fortune Park Buildings 5 & 6 1986 38,655 $ 54.64 $202,898.00 N/A 9.61% 65.00% 8755-8765 Guion Road Indianapolis, Indiana MICHIGAN Cardell Corporation 1989 41,000 $ 54.88 $287,000.00 N/A 12.76% 39.00% 2849 Product Drive Rochester Hills, Oakland County, Michigan MASSACHUSETTS Wellington Two 1987 118,730 $193.72 N/A N/A N/A N/A 20 Cabot Road Medford, MA Two and Three University 1985/1988 278,137 $160.17 N/A N/A 9.30% 100.00% Office Park MA Hayden Woods Corporate 1986 188,706 $196.07 N/A N/A 10.50% 100.00% Center 55 Hayden Avenue Lexington, MA 55 Middlesex Turnpike 1970 93,206 $154.50 N/A N/A N/A N/A Bedford, MA 100 Apollo Drive 1999 112,000 $131.70 N/A N/A 9.80% N/A Chelmsford, MA MINNESOTA Edenvale Executive Center 1983 111,245 $ 68.35 $769,480.00 N/A 10.12% 55.00% 7600-7682 Executive Drive Eden Prairie, Hennepin, MN Valley Gate North 1986 52,828 $ 66.57 $337,644.00 N/A 9.60% 85.00% 10025 Valley Road Eden Prairie, Hennepin County, Minnesota Occupancy Multi or Single at Date of Address Tenant Sale ------- --------------- ---------- INDIANA Fortune Park Buildings 5 & 6 Multi 97% 8755-8765 Guion Road Indianapolis, Indiana MICHIGAN Cardell Corporation N/A 100% 2849 Product Drive Rochester Hills, Oakland County, Michigan MASSACHUSETTS Wellington Two N/A N/A 20 Cabot Road Medford, MA Two and Three University N/A 100% Office Park MA Hayden Woods Corporate N/A 100% Center 55 Hayden Avenue Lexington, MA 55 Middlesex Turnpike N/A N/A Bedford, MA 100 Apollo Drive N/A 100% Chelmsford, MA MINNESOTA Edenvale Executive Center Multi 95% 7600-7682 Executive Drive Eden Prairie, Hennepin, MN Valley Gate North N/A 38% 10025 Valley Road Eden Prairie, Hennepin County, Minnesota [CHASE LOGO] 71