A UNIQUE OPPORTUNITYIN A DYNAMIC LOCATION

Exceptional 628,000-square-foot mixed-use development advantageously located in the heart of Desert Ridge–Arizona’s largest master-planned community

• Strategically located within minutes of top resort hotels, downtown Phoenix, downtown Scottsdale and the city’s most affluent residential areas

• The trade area includes nearly 544,034 households with an average household income of $89,565

• Situated in the prosperous Northeast Valley of Phoenix Loop 101, more than 166,000 cars pass the site daily

• High Street is positioned at the intersection of two major freeways, Phoenix Loop 101 and State Route 51, offering excellent visibility and accessibility

• Arizona’s largest resort, the 950-room JW Marriott Desert Ridge Resort & Spa, is within walking distance

• World-class architecture incorporates the finest aspects of city living

• Popular Restaurant and Bar Collection features esteemed local and national restaurateurs’ finest dining concepts

• Annual events attract thousands of local and out-of-state visitors

• Located in the sixth-largest metropolitan area in the nation, with a population of over 1.4 million, and growing

• Phoenix is one of the fastest growing cities in the US, with an expected population growth of 2.7% during 2013

A PREMIER RESTAURANT AND RETAIL DISTRICTEXECUTIVE SUMMARY

l ive work play

Dynamic mix of dining, entertainment, retail, services, Class-A office space and luxury apartment homes make High Street an exceptional place to live, work and play.

DEMOGRAPHICALLY DESIRABLESO EASY TO GET HERE. SO HARD TO LEAVE.

Access• Easily accessed and exceptionally visible, more than 166,000 cars pass the

site daily and more than 2.4 million people live within 30 minutes or less• Sited at the intersection of two major freeways• The freeway interchange draws visitors from all four directions more

quickly and conveniently than any other site in the Northeast Valley

Desert riDge• Encompassing 5,700 acres, the community of Desert Ridge is one of the

fastest-growing and most demographically desirable communities in the country

• Within Desert Ridge, there are 5,500 single family luxury homes and condominiums with an additional 1,400 more to be built within the year

• There is high-density, luxury residential directly across the street• Desert Ridge Marketplace, a 1.2 million square-foot power and

entertainment center, is adjacent to CityNorth and draws more than 25 million visitors annually

High Street at CityNorth is centrally located in the affluent Northeast Valley of Phoenix at Loop 101 and 56th Street, in the rapidly

growing master-planned community of Desert Ridge. The demographics are compelling for

those looking to attract discerning, savvy clientele with expendable income.

• Desert Ridge Marketplace focuses on big box and teen/family retail, leaving High Street well positioned to attract customers looking for upscale dining, entertainment and retail options

• The adjacent 950-room JW Marriott Desert Ridge Resort & Spa hosts some 1,000,000+ visitors a year, and is the largest hotel in Arizona, with more than 110,000 indoor/130,000 outdoor square feet of convention space, 36 holes of championship golf, 8 tennis courts, and a 28,000 square-foot spa

• The JW Marriott Canyon Villas, a mere one mile from the property, has 252 time-share units

• The renowned Mayo Clinic operates a 268-bed hospital and medical center complex one mile south of the property

DemogrAphics• Immediate trade area includes nearly 2.4 million people with an average

household income of approximately $89,565• Within five miles of the property, average household income is $87,640,

which is well above the Phoenix MSA average of $69,980

A SOPHISTICATED URBAN ENVIRONMENT TO LIVE, WORK AND PLAY

High Street offers the opportunity to create an interactive lifestyle with an existing mix of retail, restaurant, residential, office, entertainment and event uses.

Planned to incorporate and encourage the finest aspects of city living: excitement, authenticity, public and private spaces, varied architectural styles and a sense of spontaneity, High Street is a 24/7 environment, appealing to each of the most important customer segments.

retAil, restAurAnts & nightlifeOne of its most compelling components, High Street offers four city blocks of stunning restaurant, entertainment and retail suites.

Join a handpicked selection of esteemed restaurateurs’ – featuring culinary superstars such as Cameron Mitchell’s Ocean Prime, Valley favorites Mellow Mushroom and Scottsdale’s own Kona Grill, as well as the state’s premier nightclubs Blue Martini and Modern Margarita – all of which offer the finest cuisine presented by Arizona’s hottest chefs.

Overall, the 175,000 square feet of ground-level space offers flexible floor plans, stunning finishes and charming tree-lined street access for current and future dining, entertainment and shopping favorites.

A SOPHISTICATED URBAN ENVIRONMENT TO LIVE, WORK AND PLAY

resiDentiAlThe Residences on High Street are contemporary rentals of unmatched style and modern convenience. Each home is elegantly crafted with generous living spaces full of natural light, rich customizable finishes and timeless urban design. The 99 stylish, one-, two- and three-bedroom units are fully leased and range from approximately 750 square feet to more than 1,850 square feet. Each unit has access to a private parking garage, exclusive saltwater pool and modern entertainment area.

officeThe Offices at High Street are comprised of 330,000 square feet of Class A office space and feature tenants ranging from 10,000 to 60,000 square feet.

Situated in seven three- and four-story buildings above High Street’s modern streetscape, The Offices provide workers, clients and visitors a sophisticated neighborhood experience. The Offices on High Street are home to a variety of large and small companies including Cigna, Inventure Foods Inc., GlobalTranz Enterprises and Kennedy Partners.

Executives, employees and clients occupying the Class A professional office buildings benefit from the convenience of dining and entertainment amenities inherent to the property.

scottsDAle AirpArk & AirportJust minutes from High Street, the Scottsdale Airpark is a prominent employment hub for Arizona and home to approximately 50,000 workers at 2,580 companies ranging from office and light industrial to hotel and retail. Scottsdale Airpark, which includes office, industrial, retail, hotel and aircraft hangers, currently employs 50,000 and is expected to grow by 30,000 additional workers over the next 20 years.

Located within the Airpark, Scottsdale Airport is one of the nation’s premier and busiest single-runway, general aviation facilities in the United States, recording approximately 170,000 takeoffs and landings each year. Just recently, the Airport expanded its international service which will allow visitors and business travelers from all over the world to fly directly to Scottsdale.

mAjor sports frAnchisesPhoenix is a sports-lovers paradise with every major sport represented in both professional and amateur teams, with games or training accessible year-round. • MLB Arizona Diamondbacks – Chase Field (Downtown Phoenix) • NBA Phoenix Suns – US Airways Center (Downtown Phoenix) • NFL Arizona Cardinals – University of Phoenix Stadium (Glendale) • NHL Phoenix Coyotes – Jobing.com Arena (Glendale)

mAjor employers North Phoenix is a hub for employment. Within five miles of the property there are more than 96,000 daytime employees.

Nearby major employers include: • Scottsdale Airpark – 50,000 workers at 2,580 companies • Mayo Clinic – 5,200 employees (est.) • American Express – 3,000 (est.) • Desert Ridge Marketplace – 2,500 employees (est.) • JW Marriott Desert Ridge – 1,200 employees • Henkel North America HQ – 900 employees earning $90,000 per year • Go Daddy Group Inc. – 2,500 employees • Fairmont Princess Hotel – 900 employees • Penske Luxury Auto Dealerships – 650 employees • Allied Waste – 550 employees • Scottsdale Healthcare – 540 employees

ArizonA stAte universityWith 72,254 students, Arizona State University (ASU) is the largest public university in the United States. The research university has four campuses, more than 300 majors and awarded more than 17,000 bachelors, masters, doctoral and law degrees in 2011. Additionally, ASU’s popular football program regularly draws a crowd of 72,000+ to Sun Devil Stadium in Downtown Tempe. The Arizona State Sun Devils’ football program competes in NCAA Division I FBS as a member of the Pacific-12 Conference.

THE NEIGHBORHOODADDIT IONAL AREA INFORMATION

significAnt locAl eventsJanuary is high season in Phoenix, but remarkable weather and a plethora of world-class venues ensure a fall calendar of premier events and festivals 365 days a year. Here are just some of the events and attractions throughout the year.

Held at the JW Marriott Desert Ridge:• LPGA• Muhammad Ali’s ‘Celebrity Fight Night’

Fundraiser

Held within five miles of High Street:• Phoenix Open • Barrett-Jackson Collector Car Auction• Russo and Steele Collector Automobile Auction • Cactus League MLB Spring Training Held within the High Street trade area:• Fiesta Bowl • P.F. Chang’s Rock n’ Roll Marathon• Pat’s Run

• Insight.com Bowl• BCS Championship Game (rotational) • Scottsdale Culinary Festival• Arizona Renaissance Festival• Aloha Festival• Ostrich Festival• NASCAR - Phoenix International Raceway (2x

annually in spring and fall)• Scottsdale Arabian Horse Show• 2015 Super Bowl

musicAl instrument museumThe 192,000 square foot, $250 million, Musical Instrument Museum (MIM) opened in 2010. The MIM houses a global collection of more than 14,000 instruments and artifacts, offering state-of-the-art audiovisual technology to bring them to life. The museum is also home to a 299-seat music theater where world-class concerts and global artists hail from every corner of the world throughout the year.

THE NEIGHBORHOODADDIT IONAL AREA INFORMATION

THE NEIGHBORHOODADDIT IONAL AREA INFORMATION

current AreA Development • The Toscana Vacation Resort Suites, just across the street, with a total

of 466 luxury residential units is anticipated to commence construction in First Quarter 2014 completing 115 Units by Dec. 2014, which will include the “Palazzo Vacanza” (~10,000 sq. ft. State of the Art Amenities Center), large resort pool, spa and 2 tennis courts.

• 714 unit multi-family apartment complex on the Northeast corner of 56th and Deer Valley.

• 794 single family homes on the Northwest corner of 64th Street and Lone Mountain Road.

• 302 single family homes on the Northwest corner of 56th Street and Dixileta Drive.

future Development • 147 units The Manor Village Life Center is proposed for with hopes of

commencing construction simultaneously with Phase II of The Toscana Vacation Resort Suites.

WHAT’S NEXTEXCIT ING NEW ADDIT IONS TO HIGH STREET

high street rising High Street has experienced a tremendous surge in activity and leasing tours since SKB purchased the property in April of this year. Interest has skyrocketed as popular restaurants and businesses see the value of growing their business on High Street. With SKB’s competitive rates, generous TI allowances and willingness to work with tenants, High Street is poised for success in the future. Overall an additional 500,000 square feet has been signed, 300 jobs created and new tenant announcements continue each month. Recent highlights include: toby keith’s i love this Bar opens late spring 2014The 14,336 square-foot, full-service bar will feature live country music, country dancing as well as local, regional and national up-and-coming artists.

la Bocca Wine Bar & urban kitchen opens january 2014This Julian Wright concept will feature more than 150 wines plus food pairings, small plates and an expanded menu from its sister location on Mill Avenue.

rick Bronson’s comedy club opens spring 2014The 6,500 square-foot live comedy and dining venue will open just east of Toby Keith’s I Love This Bar and Grill.

other neWly signeD DeAls• Murphy Orthodontics • Desert Ridge Pediatric Dentistry• Desert Ridge Prosthodontics • Mojo Yogurt• Stealth Software • Gigya, Inc. (international social media)• Tummy Company, Inc.

eXpAnsions AnD renovAtions CityCenter of CityNorth will undergo a series of targeted renovations and enhancements to support the growth of the development while maintaining its impeccable building standards and modern architecture. A second parking garage containing 224 spaces will be built to better serve tenants and guests on the east side of the property. Additional planned improvements to include new building and monument signage, improved lighting, landscaping and more.

High Street’s marketing program emphasizes relationships with the AZ Office of Tourism, Phoenix and Scottsdale Convention and Visitors Bureaus as well as partnerships with nearby resorts and hotels, including the JW Marriott Desert Ridge, to ensure exposure to this important consumer base.

Arizona tourism • In 2011, 37.6 million domestic and international overnight travelers

experienced Arizona, which equates to approximately 103,000 visitors a day• The average travel party size is 2.7 persons averaging 46.7 years old with

an average household income of $79,070 • These travelers contributed $18.3 billion in spending. The tourism industry is

pumping more than $50 million directly into Arizona’s economy daily• Greater Phoenix consistently ranks among the nation’s top cities in the number

of Five Diamond and Four Diamond and Five Star and Four Star resorts• Arizona is ranked in the top five “most popular travel destinations for golfers”

according to the National Golf Foundation. Peak season is January through April. There are 421 golf courses in Arizona, 53 are located in Scottsdale

• Greater Phoenix is home to more than 200 golf courses

scottsdale• Scottsdale hosted and estimated 8.6 million overnight visitors in 2010, and

7.5 million day visitors with an economic impact of $3.2 billion to the local economy

• The typical Scottsdale visitor is 56 years old with a median yearly income of $97,600

• Scottsdale visitors’ top 10 activities are: shopping, day trips, art galleries & museums, nightlife, Western culture & attractions, Native American culture & attractions, outdoor activities, spas, special events and golf

• In Scottsdale alone, there are an impressive 12,000 hotel rooms. Nearby luxury resorts include: JW Marriott Desert Ridge, Scottsdale Fairmont Princess, The Westin Kierland, Hyatt Regency Scottsdale Resort, Four Seasons Resort, The Boulders and Sanctuary Resort. The daily per person expenditure rate of the hotel visitor is $430

phoenix* Source: Arizona Office of Tourism, Scottsdale CVB and VisitPhoenix.com

no other industry produces the same

economic impact for the grand

canyon state as its tourism industry.

As a matter of fact, high street’s trade

area receives more annual

visitors than the grand canyon.

TOURISM’S IMPACTA BIG PART OF THE HIGH STREET STORY

high street is poised to become the #1 dining and entertainment destination in the northeast valley, filling the void that mature and affluent customers in the trade area are seeking.

DEMOGRAPHIC INFORMATIONBY THE NUMBERS

Source: ESRI Business Analyst

population 2017 Projection 54,021 173,870 559,650 4,484,674 2012 Estimate 50,184 165,235 535,417 4,285,238 Growth 2012-2017 7.65% 5.23% 4.53% 4.65% 2012 est. employed pop. 16+ 25,611 87,905 289,176 1,925,451 2012 population by Age Age 0-4 6.30% 6.30% 6.00% 7.40% Age 5-9 6.50% 6.60% 6.10% 7.40% Age 10-14 6.50% 6.60% 6.10% 7.10% Age 15-19 5.50% 5.80% 5.80% 6.80% Age 20 and over 75.00% 74.50% 76.00% 71.40% Age 25 and over 69.90% 69.10% 70.30% 64.40% Age 65 and over 11.20% 12.00% 14.20% 12.90%

2012 est. median Age 37.60 38.60 40.3 34.9 2012 est. pop. Age 25+ by educational Attainment 32,579 111,758 381,914 2,639,059 Some College, no degree 25.20% 24.60% 24.20% 24.30% Associate Degree 8.90% 8.10% 7.80% 7.90% Bachelor’s Degree or Higher 46.30% 39.80% 39.80% 27.30% 2012 est. households by household income 21,107 66,836 223,997 1,572,382 Income $50,0000 - $74,999 17.90% 18.60% 18.30% 20.20% Income $75,000 or Higher 55.00% 47.90% 44.80% 33.10% 2012 est. Average household income $92,776 $86,307 $85,243 $67,7072012 est. median household income $80,896 $71,301 $65,822 $52,7682012 est. per capita income $39,096 $35,142 $35,873 $25,487 2012 est. median All owner-occupied housing value $265,811 $252,777 $268,556 $178,4322012 est. All owner occupied housing units 13,132 43,676 144,498 990,8592017 projection of new housing units 1,826 4,028 11,136 87,691

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High Street EventsHigh Street has become a gathering place for families and friends both in the Desert Ridge neighborhood and around the Valley. VIP fundraisers, high-energy concert series, bustling farmers markets and engaging family events bring the community together time and again. The contemporary architecture and tree-lined streets frame the “Events on High Street” and become the perfect backdrop for charity block parties, holiday events and family celebrations.

engAging our AuDienceEach event is strategically approached to leverage additional opportunities for expanding general consumer awareness of restaurants and retailers. Public Relations TV, print and online coverage, bounce back coupons, social media outreach and paid advertising enable High Street retailers to engage with new audiences through each event.

The Shops and Restaurants on High Street 175,000 sq ftThe Offices on High Street 330,000 sq ftThe Residences on High Street 123,000 sq fttotal 2013 owned sq ft. 628,000 sq ft

Future Development Pad 212,500 sq fttotal sq. ft. 840,000 sq ft

Accessible location and convenient parkingHigh Street is conveniently situated along Loop 101 at 56th Street and Deer Valley Drive in Northeast Phoenix and offers convenient valet and surface parking on High Street as well as covered parking in the six-story parking garage that houses 1,422 spaces.

sustainable DesignEnvironmentally conscious planning and sustainable elements such as recycling programs and water efficient landscaping have been incorporated into every aspect of High Street.

PROJECT FACTSMORE ABOUT HIGH STREET

Developed in 2008 as part of the original citycenter of citynorthtm project, high street is a 628,000 square foot mixed-use development that includes retail, restaurants, office and residential units creating a true 24-7 environment.

established in 1993, scanlankemperBard companies (“skB”) is a fully integrated real estate private equity firm based in portland, or with additional offices in seattle, WA and Denver, co.

investment types include office, retail, industrial and mixed-use. skB also funds bridge loans and periodically provides equity to select developers of ground-up development projects located in the Western united states.

SKB has originated total portfolio activity of $2.84 billion comprised of 20.9 million square feet of office, industrial and retail space and 2,055 residential units. With longstanding relationships in each of its markets, SKB has the ability to source, structure and execute value creation across a wide spectrum of real estate opportunities.

You may learn more about SKB by visiting the company’s website at www.skbcos.com.

THE OWNERSHIPSCANLAN-KEMPER-BARD COMPANIES

FOR RETAIL LEASING INFORMATION, CONTACT

robert B. mcgarey or trent j. goulette Southwest Retail Group

7527 E. First St. | Scottsdale, AZ 85251p: 480.946.6609

robert B. mcgareyPresident/CEO

rob@southwestretail.comc: 480.510.0133

trent j. gouletteVice President

trent@southwestretail.comc: 602.361.6285

WWW.HIGHSTREETAZ.COM