Eastbrook at West Fields Debt Package

C o n fi d e n t i a l O ff e r i n g Memorandum for the Financing of

OFFERING CONDITIONS AND CONFIDENTIAL MEMORANDUMThis is a confidential memorandum intended solely for your own use in considering whether to pursue negotiations to provide Joint Venture Equity for Eastbrook at Westfields, a 292,000 square foot office development located in Chantilly, Virginia (the Property), with Penzance Companies (the Sponsor). It is not intended to be an offer or contract for the sale of the Property. This confidential memorandum contains brief selected information pertaining to the Property and has been prepared by Jones Lang LaSalle, as the Propertys exclusive equity financing agent, from information supplied by the Sponsor. Although this confidential memorandum has been reviewed by representatives of the Sponsor, it does not purport to be all-inclusive or to contain all the information which a prospective lender may desire or deem relevant in determining whether to pursue negotiations to acquire the Property. Neither the Sponsor nor Jones Lang LaSalle nor any of their respective owners, directors, employees, representatives or agents make any representation or warranty expressed or implied as to the accuracy or completeness of this confidential memorandum or any of its contents and no legal liability is assumed or to be implied with respect thereto. The Sponsor reserves the right to withdraw the Property from the market or change the terms of the offering at any time, and will have no legal obligation unless and until written agreements have been approved and executed by all parties involved in the equity of the Property. This document is provided subject to errors, omissions, prior sale, change of price or terms and other changes in the information and is subject to modification or withdrawal without notice. The contents herein are confidential and are not to be reproduced or distributed to another party without the prior written consent of Jones Lang LaSalle. If after reviewing the following information you decide not to pursue the investment further, please return all information received to: Wes Boatwright, Jim Gladden or Shelby Pool in our Washington, DC office at the address below:

Wes Boatwright [email protected] 202-478-8683

Jim Gladden [email protected] 202-478-2358

Shelby Pool [email protected] 202-478-8635

Jones Lang LaSalle 1717 Pennsylvania Avenue, NW Suite 1000 Washington, DC 20006 phone: 202-478-2300 fax: 312-601-1230 http://www.joneslanglasalle.com

TABLE OF CONTENTSI. Executive Summary Executive Summary..............................................................................................................................................1 Joint Venture Equity Request..............................................................................................................................4 Development Overview Development Summary.......................................................................................................................................5 Aerial Photograph................................................................................................................................................8 Site Plan..................................................................................................................................................................9 Renderings...........................................................................................................................................................10 Elevations............................................................................................................................................................13 Floor Plans...........................................................................................................................................................15 Location Information Regional Map......................................................................................................................................................19 Local Map............................................................................................................................................................20 Location Description.........................................................................................................................................21 Financial Information Development Budget..........................................................................................................................................25 Summary of Assumptions.................................................................................................................................26 Budget and Draw ScheduleAnnual..............................................................................................................27 Budget and Draw Schedule11x17.................................................................................................................28 Market Information Economic Overview...........................................................................................................................................34 Office Market Overview.....................................................................................................................................38 Lease Comparables.............................................................................................................................................44 Sale Comparables................................................................................................................................................45 Land Sale Comparables......................................................................................................................................46 Competitive Properties Competitive Development Survey....................................................................................................................49 Sponsor and Project Team Sponsor and Project Team.................................................................................................................................50

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EXECUTIVE SUMMARYJones Lang LaSalles Real Estate Investment Banking group is pleased to present exclusively the opportunity to provide land acquisition and construction financing for Eastbrook at Westfields (the Property). The subject Property is a speculative two building office development totaling 292,000 square feet. Located in Westfields Corporate Center, one of the premier office parks in Northern Virginia, the Property has immediate access to the National Reconnaissance Office (NRO) and is a few miles south of Dulles International Airport. Additionally, Eastbrook at Westfields is located just a few miles from Dulles Discovery, a major secure government agency campus that will ultimately total 1.2 million square feet (delivery in late 2007). The sponsor of the Project is the Penzance Companies (the Sponsor), which currently has the land site under contract. The Sponsor is seeking a joint venture equity partner to invest in this development and provide a commitment prior to the go hard date of the contract at the end of January. The requested acquisition and construction loan shall be 65% of the total cost of the project. The Project will be leveraged with construction financing, which is being requested simultaneous with this offering.Transaction Highlights Development is site plan approved and drawings are complete Property: 292,000 SF office development Total Costs: $74.95 million ($257/SF) Stabilized NOI: $6.2 million Hold Periods: Three- to five-year Leveraged IRR: 22.5% (projected) Financing Closing Date: February 2007 Estimated Construction Start: March 2007 Estimated Delivery: August 2008

Property Eastbrook at Westfields is a site plan approved development opportunity in one of Northern Virginias premier office parks, Westfields Corporate Center. The site is 12.04 acres zoned I-3 located on the northeast corner of Newbrook Drive and Westfields Boulevard in western Fairfax County. When completed, this Project will consist of two six-story office buildings totaling 292,000 square feet to be developed on a speculative basis. There will be 748 surface parking spaces and the two buildings will meet GSA security setback requirements. The buildings will be designed with a concrete structure and have an 8-6 typical finished ceiling height with a through building lobby. The Sponsor anticipates beginning construction on both buildings simultaneously in March 2007, with an anticipated delivery date of August 2008. Location Located on the east side of Westfields Corporate Center, the subject Property is located in close proximity to National Reconnaissance

Property Summary Eastbrook at WestfieldsMarket Type Size # Buildings Class Stories Floor Sizes: Land Area Construction Commencement Construction Completion Parking Route 28 South (Westfields Corp. Center) Speculative Office Development 292,000 SF 2 A 6 48,600 SF 12.04 Acres March 2007 August 2008 3.8/1,000 RSF

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EXECUTIVE SUMMARY (continued)Office (NRO) and a number of well-known contractors such as Boeing, Lockheed Martin, SAIC and Northrop Grumman. The site is located less than five miles south of Dulles International Airport and a future 1.2 million square foot campus for a secure government agency known as Dulles Discovery. The first phase of this campus, totaling approximately 400,000 square feet, will deliver in late 2007. This agency is rumored to have already optioned the second phase and potentially be out of space. Like NRO, substantial demand will be generated from the occupant at Dulles Discovery. Westfields Corporate Center is one of Fairfax Countys premier office park developments, comprising 1,100 acres at the intersection of Route 28 and Westfields Boulevard. The park provides convenient access to the metro region via Interstate 66, Route 50 and Route 28. Employees within Westfields can take advantage of exclusive amenities such as on-site childcare and the 345-room Westfields Marriott and Conference Center. This first class facility offers three restaurants, 40,000 square feet of conference facilities and a health and fitness center complete with indoor and outdoor pools. Nearby is the 18-hole Westfields golf course designed by Fred Couples and managed by Marriott, and shopping centers such as the Fair Oaks Shopping Center and Sully Station Shopping Center are minutes away. Market Strong tenant demand characterized this market in 2006 with more than 849,000 square feet of net absorption occurring in the Route 28 South submarket; this represents 21% of all net absorption in Northern Virginia during the year. As a result, average Class A rental rates have spiked by 25% to their current level of $29.64 per square foot. The economy of the Washington, DC metropolitan area remains very strong, with regional job growth of 76,800 in the 12 months ending September 2006 and a total gain of over 260,000 jobs since June 2002. Strong job growth has contributed to bringing the areas unemployment rate down to 2.9% in the 3rd quarter of 2006, which is well below the national average of 4.8%. Additionally, GDP in the metropolitan region grew by 4.1%, as compared to 3.5% nationally in 2005. Job growth has stemmed from the expansion and relocation of both public institutions and private companies. Regional defense spending, and especially intelligence spending, have been the key drivers of public sector demand. Development Status Eastbrook at Westfields is site-plan-approved. Construction drawings are 90% complete and most of the third party work is also completed. The Projects ability to meet Department of Defense requirements is a critical competitive advantage. Eastbrook at Westfields meets set back and other security requirements allowing for upwards of 292,000 square feet of space in a contiguous, two-building-format. To accommodate the needs of a larger tenant, the buildings could be connected. Construction can commence in a matter of a few months, allowing the Project to capitalize on a unique supply delivery window. The Project is one of only two developments that can deliver in Westfields East in 2008. At current absorption rates, 2008 will be a peak year for demand. Limited supply, coupled with this projected demand, bodes well for Easbrook. Commencement is scheduled for March 2007 with delivery to follow 17 months thereafter in August 2008.

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EXECUTIVE SUMMARY (continued)Financing Structure The Sponsor is requesting 65% LTC acquisition and construction financing that will be committed to lend by the go hard date of January 31st 2007. Closing on the land shall occur 30 days thereafter.

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FINANCING REQUESTACQUISITION AND CONSTRUCTION FINANCINGAsset: Type: Total Loan Amount: Initial Cost: Initial Loan Amount: Sources & Uses (Rounded): Class A Office Development totaling 292,000 NRSF Acquisition and Construction Loan $48,720,000 $10,250,000 $6,675,000

Sources Construction Loan JV Equity Penzance Equity Total Sources Uses Land Acquisition Costs Hard Costs Soft Cost Interest Carry Costs Total Uses

% of Total 48,720,000 65.00% 23,600,000 31.50% 2,625,000 3.50% 74,945,000 100.00% 8,430,000 49,640,000 11,920,000 4,955,000 74,945,000

% of Equity 90.00% 10.00% 100.00%

Loan to Cost: Term: Credit Spread: Interest Rate Index: Interest Rate: Lender Fee: Recourse:

65% Two Years, with two 12-month extensions 195 bps LIBOR5.30% 7.25% 50 bps Non-recourse, except for standard carve-outs, and completion guarantee, which will be provided by an entity controlled by the Penzance Companies. February 28, 2007

Closing:

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DEVELOPMENT SUMMARYProject Summary Eastbrook at Westfields is a site plan-approved development opportunity in one of Northern Virginias premier office parks: Westfields Corporate Center. The site is 12.04 acres zoned I-3 located on the northeast corner of Newbrook Drive and Westfields Boulevard in western Fairfax County. The approved site plan is for two six-story buildings14224 Newbrook Drive and 14226 Newbrook Drivethat can be connected, totaling approximately 292,000 square feet of rentable space. The site plan indicates that there will be 748 surface parking spaces and both buildings will meet GSA security setback requirements. The Sponsor intends to break ground and develop both buildings simultaneously. Project Description The Eastbrook Office Project will be composed of two new, six-story office buildings with full lower levels (not included in the FAR calculation) of approximately 292,000 FAR square feet in area. These six-story buildings will be designed as concrete structures with 11-0 typical floor to floor (8-6 typical finished ceilings) with through building lobbiesthe lobbies being two-story on the lower entry side. The building heights will be approximately 66-0. The project is described as follows: Two six-story office buildings (base building) with a concrete system, and precast concrete and an aluminum framed window exterior building skin. Site development will include landscaping, pedestrian sidewalks, roadway and drives, exterior signage, exterior lighting and parking at a ratio of 3.8 cars/1,000 RSF. Tenant areas in the Base Building Package will include finished core rooms and building exit stairs. Perimeter walls and columns will be framed and insulated; gypsum wallboard will not be installed. Core walls will be finished, ready for paint. ACT and lights in tenant areas will not be installed. A finished Class A two-story lobby will be included in the base building; typical floor elevator lobbies will not be finished. A typical design will be supplied as an add alternate. The structural system for the buildings is a combination of post-tensioned and mild steel reinforced concrete utilizing a slab-beam system. Post-tensioning is contained within the typical 10-0 wide by 13-0 thick slab-beam spanning between columns in the north-south direction. A 7 thick mild steel reinforced slab spans in the east-west direction. The typical office floor-to-floor height is 11-0. The clear height to the underside of the 7- slab is 10-4 . The clear height to the underside of the 13 slab-beam is 9-11. The typical office floors are designed for a 100 psf live load. The interior columns are typically 24 x 30 while the perimeter columns are typically 24 x 24.

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DEVELOPMENT SUMMARY (continued) Dual Primary electrical services to two 2000 KVA service transformers. The 2000 KVA transformers serve two 2500A 480Y/277 volt switchboards located in the buildings main electrical room. 480/277v, 4-wire, 3-phase circuit breaker type main switchgear (2-2500 amp switchboards). 8.0 watts per square foot for tenant lights and outlets. Pad site for generator available, in addition to emergency generator for life safety and base building systems. Six 4 conduits to public right-of-way for fiber optic service and copper. Six 4 conduits to each telephone/data closet reiser from main telephone room. Six 4 riser sleeves running floor to floor in each closet. Each floor is served by two water cooled, self contained VAV units. Each unit has a continuous main duct loop to eliminate low pressure distribution points. Tons per square foot: 1 per 290 Lobby Connector AC Two 5-ton water source heat pump units.

General Design Elements The design of the Eastbrook Office buildings will include the following common design elements: Site 1. 2. 3. 4. 5. 6. 7. 8. 9. Parking ratio of 3.8 spaces/1,000 RSF. Split-faced CMU walls and metal gate enclosed dumpster pad of approximately 10x10, large enough to accommodate a trash dumpster with concrete pad in front. Drop-off area at the front of the building. Architecturally treated main entrance, unit pavers, low walls, seating, bollard lighting. Well-landscaped site with large plant material. Tree caliper to be a minimum of 3. Sod all areas within building pad and main entry drive. Mow strip around perimeter of building, where appropriate. Architecturally designed site directional and building signage. Monument sign at entrance to site designed to be compatible with building facade materials. A Building Emergency Power Generator will be located at lower level.

Building Exterior 1. 2. 3. 4. 5. Precast panels as indicated on the building elevations, glass curtainwall and punched windows. Architectural canopy feature at main building entrancefront and rear; cantilevered structure, metal clad, metal ceiling system with downlights. Roof screen will be of precast panels. Low parapets will be faced with metal panels. Mechanically attached, 60 mil EPDM membrane roof. Architectural lighting at main entrance, site lighting to meet the Westfields Architectural Guidelines.

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DEVELOPMENT SUMMARY (continued)Building Interior 1. First floor main (through and two-story on lower entry side) and elevator lobbies architecturally designed with elements of stone flooring, carpet, wood, textured coatings, wall covering, glass and glass door suite entries, gypsum board ceilings and specialty lighting. Backlit building directory and consideration given for location of artwork in the lobby. Two emergency exit stairwells are to be providedone exiting lobby, one exiting through a side exit passageway. Three geared 3500#/350fpm elevators will provide service to all floors. Elevators will be machine roomless type (similar to Otis Gen-2) with a remote service panel closet located on the lower level. The main electrical room and mechanical room will be on the lower level of the building. The water service/sprinkler room will be on lower level. External loading spaces are provided at lower level. One electrical closet and one telephone closet will be provided on each floor. Closets will be stacked up the building and floor sleeves and conduits will be provided. A cased opening will be provided between elevator lobbies and tenant corridors to facilitate the transition of finishes. Glass suite entries will be provided off the main lobby; glass will be frosted or architecturally treated. Elevator cabs to be custom designed using wood panels, stainless steel trim, flooring compatible to the building lobby, and accent lighting. Button fronts of elevator cabs will be selected from manufacturers standards.

2. 3. 4. 5. 6. 7. 8. 9. 10.

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AERIAL PHOTOGRAPHFUTURE 1.2 MILLION SF SECURE GOVERNMENT CAMPUSS S UL L W LY Y IL L RO LA O AD R D DR RO A (C AD CO M IN T ME TER EN RC H C H CI NG AN N GE S S OO E U N)) PG RA DE E

Future Long & Future Long & Foster HQ Foster HQ Scitor Scitor SAIC SAIC

Future FBI Future FBI

Future FBI

Northrop Grumman Northrop Grumman Lockheed Martin Scitor Lockheed Martin Scitor Corporation Corporation Northrop Grumman Northrop Grumman Aerospace Aerospace Corporation Corporation Boeing Northrop Grumman Boeing Northrop Grumman General Dynamics General Dynamics Aerospace Aerospace Corporation Corporation

Quest Diagnostics Quest Diagnostics General Dynamics General Dynamics

Datatrac DatatracMantech Mantech FBI FBI Omniplex Omniplex Rolls Royce Rolls RoyceE NG HA RC TE IN

CSC CSC

COMTek COMTekFord Motor Ford Motor Company Company CACI CACI Travelers Insurance Travelers Insurance Boeing Boeing

General Dynamics General Dynamics

6) 00 (2 E AD GR UP

Sully District Sully District Police Station Police StationRO UT E2 8

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SITE PLAN

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RENDERINGS

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RENDERINGS (continued)

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RENDERINGS (continued)

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ELEVATIONS

North Elevation

South Elevation

ELEVATIONS (continued)

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East Elevation

West Elevation

LOWER LEVEL FLOOR PLAN

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FIRST FLOOR PLAN

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SECOND FLOOR PLAN

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THIRD, FOURTH, FIFTH AND SIXTH FLOOR PLANS

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REGIONAL MAP

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LOCAL MAP

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LOCATION DESCRIPTIONProperty Overview The Eastbrook at Westfields site benefits from its strategic location in one of Fairfax Countys premier office parks, Westfields Corporate Center, which is home to numerous government agencies and Fortune 500 companies such as the National Reconnaissance Office (NRO), Boeing, Lockheed Martin, SAIC and Northrop Grumman. The site is positioned on the border of Fairfax and Loudoun Counties, among the nations wealthiest. A secure government agency is having a new campus, called Dulles Discovery, built just north of Westfields off of Route 28. This new center will drive increased demand for space by defense and government contractors throughout the Route 28 corridor. Location

Eastbrook at W estfields LocationLandmarkRoute 28 Dulles International Airport Terminal Dulles Toll Road Reston Town Center Capital Beltway (I-495) The Pentagon Reagan National Airport The White House

Distance from Property0.9 Miles 4.8 Miles 6.0 Miles 7.6 Miles 13.5 Miles 20.9 Miles 23.0 Miles 23.0 Miles

The site is well-located just minutes from Washington Note: Distances are direct aerial routes; drive times vary depending on local Dulles International Airport and the convergence of traffic patterns. several major roadways including I-66, Routes 28, 50 and the Dulles Toll Road (Rt. 267). Eastbrook at Westfields straddles Route 28, which connects the Toll Road to I-66 and continues south to Manassas. The Dulles Toll Road (Route 267) runs from the Beltway (I-495) to Loudoun County, providing easy access from Washington, DC to Loudoun County. Future tenants of Eastbook at Westfields will benefit from the projects close proximity to the local airports. Ronald Reagan National Airport is 23 miles away and Washington Dulles International Airport is within 4.8 miles of the development site. Washington Dulles International Airport was built in 1962 as the first airport developed specifically to accommodate jets. Originally designed to handle a maximum of six million passengers annually, the airport has grown to an annual volume in excess of 23 million passengers a year. The airport currently serves 43 airlines (15 major airlines, eight regional airlines and 20 international airlines), and provides non-stop flights to 125 destinations including 40 international destinations. Growth projections for both passenger and aircraft operations highlighted the need for even more airport facilities in the future. In 2000, the Airports Authority Board of Directors approved a second phase of capital investment. The Board approved $3.4 billion in projects which are part of d2, the Dulles Development program. The d2 projects completed so far include two new Daily Parking Garages, passenger walkways with moving sidewalks connecting the garages to the Main Terminal and connecting the Main Terminal to

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LOCATION DESCRIPTION (continued)Concourse B, reconstruction of Runway 12-30, new permanent Z-gates at the Terminal and the renovation of the original 1962 Eero Saarinen-designed terminal, including improved ticketing counters and new baggage claim devices. Projects currently underway include improving the roadways, expanding Concourse B, building a new Airport Traffic Control Tower and constructing an automated Airport Train System and train stations. A new Security Mezzanine is also included in the construction of the Main Terminal Train Station. Future d2 projects call for expanding the Z-gates, constructing a fourth (2008) and fifth runway and building a new permanent Concourse beyond the present location of Concourse C and D. Dulles is Source: http://www.dullesmetro.com in a constant state of evolution and improvement. The challenge for the Airports Authority is to continue to keep pace with growth in air service and meet the future traveling needs of the Washington, DC metropolitan region. Eastbrook at Westfields will also benefit from the future expansion of the Metrorail system that will extend through Tysons Corner all the way to Dulles International Airport and portions of Loudoun County. This expansion is known as the Dulles Metrorail and is designed to help reduce traffic congestion, create new opportunities for local businesses and give residents and commuters a dependable, stress-free way to get to work. The project will extend the Metrorails orange line, which presently ends at the Vienna station, by 23 miles. According to dullesmetro.com, the majority of the extension will be constructed in the median of the Dulles International Airport Access Highway and Dulles Connector Road, but the alignment also serves Tysons Corner and Dulles Airport. The extension includes 11 new Metrorail stations, a new rail yard on Dulles Airport property and improvements to an existing rail yard at the West Falls Church Metrorail station. This corridor encompasses primary areas, including Tysons Corner, Reston, Herndon and Washington Dulles International Airport, as well as portions of eastern Loudoun County. The Dulles Metrorail project will commence construction on the first phase in early 2007 with completion in 2012. This phase will include all of Tysons Corner and parts of Reston. The second phase is scheduled to begin in 2010 and will encompass Reston, Herndon, Dulles Airport and Loudoun County. Phase two is scheduled to be completed as early as 2015.

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LOCATION DESCRIPTION (continued)In addition to improvements to the Metrorail system, a Route 28 Tax District was formed in 1987 by land owners of commercial and industrial zoned properties from Fairfax and Loudon Counties. The tax district provides for highway infrastructure improvements along Route 28 including the widening of Route 28, the Westfields Boulevard interchangecompleted last year and the soon-to-begin Willard Road interchange. These two interchanges will help to improve traffic flow for employees who commute to Westfields on a daily basis. Westfields Corporate Center Westfields Corporate Center is one of Fairfax Countys premier office park developments, consisting of approximately 1,100 acres surrounding the intersection of Route 28 and Westfields Boulevard. There are approximately 40 competitive office buildings in Westfields Corporate Center, totaling approximately 4.6 million square feet.Interchange Upgrade (Commencing Soon)

Interchange Upgrade (2006)

When completed, Westfields will have between 16 and 18 million square feet of office, research and hotel space. This Corporate Center is situated in a natural setting and is characterized by well-spaced buildings with large set backs, making it a priority location for tenants with a need for physical security. Geographically, the park sits on the western edge of Fairfax County, approximately 23 miles from the heart of Washington, DC. The office park is home to some of the most prestigious companies in the world, most of which have chosen the location for its proximity to the National Reconnaissance Office. These corporations include Scitor, CH2M Hill, DynCorp, Mantech, Aerospace Corporation, Boeing, General Dynamics, SAIC, CACI and Quest Diagnostics. Approximately 4.8 miles north of Eastbrook at Westfields is a substantial future campus for a secure government agency known as Dulles Discovery which will ultimately consist of upwards of 1.2 million square feet. This project is located north of the subject site on Rt. 28, directly across from Dulles International Airport. The first phase of this campus, which will total approximately 400,000 square feet, is currently under construction and will deliver in late 2007. Proximity and accessibility to this campus in the future will be essential for companies seeking to do business with this agency. Westfields is a location that provides this proximity and accessibility. Amenities The site is located in a thriving area with a growing amenity base. There are 12 neighborhood shopping centers within three miles of Eastbrook at Westfields, offering a variety of neighborhood dining and shopping destinations. Additionally, Reston Town Center and Fair Oaks Mall are just a few miles from the property and offer an array of retail options. Westfields Corporate Center is also well-served by a network of 16 hotels within a three-mile radius of the property, including the Westfields Marriott Hotel and Conference Center with 345 rooms and 40,000 square feet of meeting space. In addition, the Washington Dulles Marriott Suites has 253 suites and 2,300 square feet of meeting space in 11 meeting rooms. The Hilton Washington Dulles features 301 guestrooms and suites, and over 22,000 square feet of conference and banquet space. There are also several extended stay hotels, including Extended Stay America and Extended Stay Deluxe. Please see the following page for a map of nearby amenities.

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LOCATION DESCRIPTION (continued)Hotels Centreville SquareCitibank Hunter Mill Deli Lone Star M&T Bank Pizza Hut Quiznos Ruby Tuesday SunTrust Bank Applebees Arbys Bob Os Burger King Chick-Fil-A McDonalds Pizza Hut Taco Bell Willards Pit BBQ

Shopping Centers Chantilly Restaurant ParkTaco Bell

Sully Plaza Center

Centreville Square II Newgate Shopping CenterBank of America Fast Eddies New York Grille Trader Joes

A&W Baja Fresh CVS Express Gourmet Jerrys Sub Shop KFC Milwaukee Frozen Custard Otani Restaurant Pho Bac of Chantilly Shoppers Food Warehouse SunTrust Bank Wachovia Bank Wendys

1. Amerisuites Hotel 2. Courtyard Marriott 3. Cub Run Field House & Rec Center 4. Extended Stay America 5. Hampton Inn 6. Holiday Inn 7. Homestead Village Guest Studio 8. 9. Marriott Towne Plaza Suites 10.Residence Inn 11.Extended Stay Deluxe 12.Springhill Suites 13. Center 14.Wingate Inn 15.Hilton 16.Stay Bridge Suites

Bagel Bakery Ciros New York Pizza Five Guys Grand Food Mart Kabob Express Lil Joes Pizza Two Amigos Wachovia Bank

Sully Station Center

Old Centreville Crossing

Restaurants1. Anitas 2. Bob Evan Farms 3. Bowl America 4. Cici Pizza 5. Damons Grill 6. Longhorn 7. Red Robin 8. Starbucks 9. Texas Roadhouse 10.Famous Daves BBQ

Centrewood Plaza

Dairy Queen Glory Days Grill Little Italy Deli Lulus Caf Martini Billiard & Bar Papa Johns

Ace Hardware Blue Water Grill Fioras Ristorante Hunan Chef Popeyes Safeway Subway

Baskin Robbins Blockbuster Charlie Chiangs Chinese Giant Hallmark Popeyes Starbucks Subway

Pickwick SquareBella Pizza Fortune Gourmet OTooles Roadhouse Wachovia Bank

Village Center

Chantilly CrossingsChipotle Hersheys Ice Cream Target Wachovia Bank

Sully Place Shopping Center

Fitness Centers1. Golds Gym 2. Lifetime Fitness 3. Olympus Gym

Big Kmart Dairy Queen IHOP Restaurant Lowes Papa Johns Pizza Ruby Tuesday SunTrust Bank

Blockbuster Chevy Chase Bank Giant Manhattan Bagel Matsu Sushi McDonalds Milano Restaurant Quiznos Starbucks Vocilli Pizza

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DEVELOPMENT BUDGETDEVELOPMENT BUDGET

Building FAR Feet (Base Gross SF) 261,806 *BOMA Gross Measured Area 313,558 Building Rentable Square Feet 292,000 Office Area 267,078 Rentable to Office Ratio 1.09 Surface Parking Spaces 748 * Lower Level Space is expected to be rentable but excluded from FAR because 50% or more of space is below grade. % OF TOTAL COSTS TOTAL COST $7,899,400 $51,250 $479,666 $8,430,316 COST PER RSF $27.05 $0.18 $1.64 $28.87

COST COMPONENT LAND ACQUISITION & CLOSING COSTS LAND BASIS (Net after backing out costs incurred by former owner) CLOSING COSTS EQUITY/DEBT BROKER FEE TOTAL LAND ACQUISITION & CLOSING COSTS HARD COSTS SHELL BUILDING, SITE WORK, & SURFACE PARKING PREDEVELOPMENT SITEWORK BY FORMER OWNER HARD COST CONTINGENCY TENANT IMPROVEMENTS TOTAL HARD COSTS

0.50%

of Acq

4.00%

$36,500,000 $1,752,000 $1,460,000 $11,680,000 $51,392,000

$125.00 $6.00 $5.00 $40.00 $176.00

SOFT COSTS ARCHITECT & ENGINEER PREDVELOPMENT ARCHITECT & ENGINEER BY FORMER OWNER BUILDING PERMIT, CONSTRUCTION BOND, WATER & SEWER FEES INSPECTIONS, SURVEY, TESTING, & OTHER THIRD PARTY REPORTS RECORDATION, REIMBURSABLES, & MISC. ADMIN. AND TRANSACTION COSTS MARKETING CONSTRUCTION MGMT Expense (Design & Construction) LEASE COMMISSIONS DEVELOPMENT OVERHEAD (Excluding Land & Acquisition Costs) 3.00% SOFT COST CONTINGENCY 4.00% LEGAL COSTS & ACCOUNTING FINANCING FEES AND CONSTRUCTION LOAN CLOSING COSTS TAXES, BUILDERS RISK & COMMERCIAL LIABILITY INSURANCE TOTAL SOFT COSTS CAPITALIZED INTEREST (Through Disposition)

of Hard Costs of Soft Costs

$750,000 $598,600 $876,000 $200,000 $45,000 $300,000 $900,000 $3,007,501 $1,489,200 $368,108 $350,000 $615,000 $670,000 $10,169,409 $4,956,072

$2.57 $2.05 $3.00 $0.68 $0.15 $1.03 $3.08 $10.30 $5.10 $1.26 $1.20 $2.11 $2.29 $34.83 $16.97

TOTAL PROJECT COSTS CHECK:

$74,947,797 $0

$256.67

NOTES: -Contract land acquisition cost is $10.25M, which includes work that has already been completed by the seller including site work ($1.752M) & Architect & Engineer Costs ($0.598M). The land has been put in to the budget at $7.899M and these other costs have been included as indiv. line items above.

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SUMMARY OF ASSUMPTIONSBuilding Areas Eastbrook 313,558 % FAR 313,558 100% 292,000 93% Total 313,558 % FAR 313,558 100% 292,000 93% BOMA Gross Measured Area Building Gross SF Building Rentable SF Debt & Disposition Assumptions 30-Day Libor Spread (bps) Effective Interest Rate 5.30% 225 7.55% 65% 65% Eastbrook Debt Funding Equity $0 $8,430,316 $48,716,068 $17,801,413

Acquisition Financing (Land & Closing Costs) Development Financing (Hard, Soft & Interest)

Critical Dates Start 3/1/2007 3/1/2007 6/1/2007 9/1/2008 12/1/2009 Eastbrook End 5/31/2007 8/31/2008 11/30/2009 12/1/2010 Total Months Months 3 15 15 33 Stabilized Summary Stabilization Period: Dec-2009 to Nov-2010 Eastbrook $/RSF $9,251,683 $31.68 $98,087 $0.34 ($467,488) ($1.60) $8,882,281 $30.42 ($127,321) ($318,302) ($954,905) ($1,273,207) ($31,830) ($2,705,566) $6,176,716 ($0.44) ($1.09) ($3.27) ($4.36) ($0.11) ($9.27) $21.15 8.2% 16.2% 22.5% Exit Cap Rate Selling Costs (as % of Price) 7.00% 2.25% Eastfields $88,238,799 ($1,985,373) $86,253,426 Overall $/rsf $302

Acquisition Date Predevelopment Period Construction Period Lease-up Period Disposition Date

Detail of Base Rental Income Rental Revenue Parking Income Base Rental $9,251,683 $0 $9,251,683

Development Cost Assumptions Eastbrook Land Acquisition Closing Costs Equity Broker Fee Hard Costs HC Contingency Tenant Improvements Predevelopment Costs (Part of Acq) Soft Costs Leasing Commissions $25.19 0.50% 0.64% $125.00 $1,460,000 $40.00 $8.05 $22.48 6% /FAR of Acq. of Debt/Equity /RSF /RSF /RSF /RSF $25.19 0.50% 0.64% $125.00 $1,460,000 $40.00 $8.05 $22.48 6% Inflation Commences Annual %

Base Rental Income Reimbursements Vacancy / Credit Loss Effective Gross Income Operating Expense Cleaning Utilities Real Estate Tax Non Recoverable Exp. Total Operating Expenses Net Operating Income

Jan-2007 Jan-2007 Jan-2007 Jan-2007 Jan-2007

0.00% 0.00% 0.00% 0.00% 0.00%

Income & Expense Assumptions Rental Rate Parking* (see detail on parking tab) $29.50 $/RSF $0.40 $1.00 $3.00 $4.00 $0.10 $8.50 $0.00 5% (begins after stabilization) Inflation Commences Annual % Jan-2007 3.00%

CASH-ON-CASH YIELD UNLEVERED IRR LEVERED IRR

Full Service Rent

Acquisition & Development Costs Eastbrook $/RSF Land Acquisition & Closing Costs Land Acquisition Closing Costs Equity Broker Fee Total Land & Closing Costs Hard Costs Hard Costs HC Contingency Tenant Improvements Total Hard Costs Rent Steps 3.00% 3.00% 3.00% 3.00% OE BY $8.65 $8.91 $8.91 $8.91 Soft Costs Predevelopment Costs Soft Costs Leasing Commissions Total Soft Costs Capitalized Interest $2,350,600 $6,563,308 $3,007,501 $11,921,409 $4,956,072 $74,947,797 $48,716,068 $43,378,841 $26,231,729 $26,231,729 $8.05 $22.48 $10.30 $40.83 $16.97 $256.67 3.14% 8.76% 4.01% 15.91% 6.61% 100.00% $7,899,400 $51,250 $479,666 $8,430,316 $27.05 $0.18 $1.64 $28.87

Operating Expense Cleaning Utilities Real Estate Tax Non Recoverable Exp. Total Operating Expense Capital Reserve Vacancy/Credit Loss

% of Total 10.54% 0.07% 0.64% 11.25%

Jan-2007 Jan-2007

3.00% 3.00%

Lease-up Assumptions Sq. Ft. Phase 1 Block 1a Block 1b Block 1c Block 1d 102,200 63,267 63,267 63,266 292,000 Commence 9/1/2008 1/1/2009 6/1/2009 11/1/2009 Term (yrs) 5 5 5 7

$36,500,000 $1,460,000 $11,680,000 $49,640,000

$125.00 $5.00 $40.00 $170.00

48.70% 1.95% 15.58% 66.23%

Tenant Improvements Costs spent in 3 months preceding lease commencement Leasing Commissions paid 50% at signing (3 months before commencement) and 50% at commencement Assumes 35% of project is pre leased

TOTAL PROJECT BUDGET Total Debt Funding Peak Debt Balance Total Equity Funding Peak Equity Balance

##### #####

6.50% 20.85% 30.26%

6.75% 18.47% 26.34%

Exit Cap 7.00% 16.22% 22.54% Interest Rate 7.25% 16.22% 22.82%

7.25% 14.09% 18.85%

7.50% 12.05% 15.24%

7.75% 10.12% 11.73%

##### ##### Notes Debt is based on 65% of total project cost. Costs to be funded by Equity first until 35% of total project cost have been funded.

6.75% 16.23% 23.30%

7.00% 16.23% 23.06%

7.50% 16.22% 22.59%

7.75% 16.22% 22.35%

8.00% 16.22% 22.12%

PLEASE NOTE THAT FULL SERVICE RENTS, OPERATING EXPENSES & HARD/SOFT COSTS ARE NOT INFLATED THROUGH THE END OF THE CONSTRUCTION PERIOD. THE MARKET OFFICE RENTS & OPERATING EXPENSES ARE INFLATED BEGINNING WITH THE LEASE UP PERIOD. MODEL ASSUMES THAT DEBT & EQUITY IS FUNDED PARI PASSU (65%/35% AS A PERCENTAGE OF HARD & SOFT COSTS) BEGINNING WITH THE PRE DEVELOPMENT PERIOD AND CONTINUING THROUGH STABILIZATION AND SALE OF THE ASSET.

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BUDGET AND DRAW SCHEDULEANNUALEastbrook at Westfields Chantilly, VirginiaYear For the Years Ending Februrary... Year 1 2008 Year 2 2009 Year 3 2010 Year 4 2011 Year 5 2012 Year 6 2013 Year 7 2014

INCOME Block 1a (102,200 sf) Block 1b (63,267 sf) Block 1c (63,267 sf) Block 1d (63,266 sf) Parking Income Scheduled Base Rental Revenue Expense Reimbursement Revenue Block 1a Block 1b Block 1c Block 1d Total Reimbursement Revenue TOTAL POTENTIAL GROSS REVENUE General Vacancy EFFECTIVE GROSS REVENUE OPERATING EXPENSES Operating Expense Cleaning Utilities Real Estate Tax Non Recoverable Exp. Parking Expense TOTAL OPERATING EXPENSES NET OPERATING INCOME

0 0 0 0 0 0

1,552,674 330,006 0 0 0 1,882,680

3,151,927 1,989,939 1,485,029 660,003 0 7,286,898

3,246,485 2,049,637 2,024,590 1,999,808 0 9,320,520

3,343,880 2,111,126 2,085,327 2,059,802 0 9,600,135

3,444,196 2,174,460 2,147,887 2,121,596 0 9,888,139

3,547,522 2,239,694 2,212,324 2,185,244 0 10,184,783

0 0 0 0 0 0 0 0

4,421 0 0 0 4,421 1,887,101 0 1,887,101

31,081 2,819 2,819 2,819 39,538 7,326,436 (115,710) 7,210,726

58,540 19,818 19,818 19,818 117,994 9,438,513 (471,926) 8,966,587

86,824 37,327 37,327 37,326 198,803 9,798,938 (489,947) 9,308,991

115,955 55,361 55,361 55,360 282,036 10,170,175 (508,509) 9,661,667

145,961 73,936 73,936 73,935 367,767 10,552,550 (527,628) 10,024,923

0 0 0 0 0 0 0 0

(25,738) (64,346) (193,038) (257,384) (6,435) 0 (546,941) 1,340,160

(99,922) (249,806) (749,417) (999,223) (24,981) 0 (2,123,349) 5,087,377

(128,269) (320,672) (962,015) (1,282,687) (32,067) 0 (2,725,709) 6,240,878

(132,117) (330,292) (990,875) (1,321,167) (33,029) 0 (2,807,480) 6,501,511

(136,080) (340,201) (1,020,602) (1,360,802) (34,020) 0 (2,891,705) 6,769,962

(140,163) (350,407) (1,051,220) (1,401,626) (35,041) 0 (2,978,456) 7,046,467

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ECONOMIC OVERVIEWWashington, DC Metro Overview Viewed as one of the most thriving and stable economies in the country, the Washington, DC metropolitan area continues to rank among the top three metropolitan regions across the nation based on key economic indicators. In October 2006, the Washington, DC region had one of the lowest unemployment rates across the country at 2.9%, well below the national rate of 4.5%. In 2006, the unemployment rate remained below 3.5%; job growth has been strong, with 77,300 new jobs created in the 12 months ending October 2006. Picking up pace in 2006, total non-farm job growth averaged 2.53%, while in 2005 total non-farm employment grew by an average of 2.3%. Employment growth in the region is led by the Professional and Business services sector, growing at an annual rate of 4.8% ahead of the 2005 average of 4.4%. Anchored by the nations Capitol, Washington, DC, the region serves as headquarters for all major federal agencies. Some of the largest include DoD, Homeland Security, National Institutes of Health and the Food and Drug Administration. The region is also the headquarters for many major companies, including 15 Fortune 500 companies, including Lockheed Martin, MCI, General Dynamics, Nextel Communications, Marriott International, Host Marriott and Fannie Mae. In addition, virtually every major company in the country has a presence in this area. In 2006, 65 local companies had a market capitalization of over $1 billion (Greater Washington Initiative). Economic activity in the region is centered around the federal government, which has a large multiplier effect on jobs. Service companies and contractors that work with the government are a substantial economic force in the region. The federal government accounts for approximately 10.6% of the jobs in the region, while attracting over 100 major contracting and service companies to be headquartered close to government agencies. Much of the government employment activity in Northern Virginia is centered around DoD-related entities while employment activity in Maryland is centered around biotech and healthcare-related firms located near federal agencies such as HHS, FDA, NIH and NCI with a substantial presence in Maryland. As a result, much of Northern Virginias employment base contains a high number of government contractors and engineers, while Marylands includes a number of drug and biotech companies and scientists. Fairfax County Economic Overview Introduction Fairfax County is comprised of 395 square miles adjacent (immediately west) to Washington, DC, Arlington and Alexandria. Fairfax County serves as the core of one of the most vibrant metropolitan economies in the nation, which continues to attract businesses and residents alike. As the national economy slowly improves, the Fairfax County economy has boomed as a result of numerous attributes that are unique to this region, including: One of the countrys fastest growing populations; Historically low unemployment rate;

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ECONOMIC OVERVIEW (continued) A highly educated and skilled workforce; and Significant federal government presence

Fairfax Countys diverse economic base is expected to continue to expand through healthy public and private investment within the region. Economy With its highly trained and educated workforce, desirable quality of life, competitive tax structure and proximity to Washington, DC, Fairfax County has a diverse and dynamic economy, boasting more than 29,000 institutions employing more than 583,000 people. There are more than 4,650 technology companies with offices in Fairfax County, including aerospace, e-commerce, Internet services, software development and telecommunications industries. Although many large corporations call Fairfax County home, the majority of businesses are small and locally owned; 97% employ fewer than 100 employees or have revenues under $1 million. Businesses range in size from entrepreneurial start-ups to multi-billion dollar enterprises. Fairfax County is home to the headquarters of six Fortune 500 companies as well as home to more than 260 foreign-owned firms. Companies headquartered in Fairfax County include Capital One Financial, Gannett Corporation, General Dynamics, Nextel, NVR and Sallie Mae. The largest employer in the area is Innova Health Systems, which employs more than 10,000 people in Fairfax County, followed by Booz Allen Hamilton and Northrop Grumman, which both employ between 7,000 and 8,000 people in the county. The countys current economic success can be attributed to a number of different industries; however, the services sector continues to drive the local economy. Major employers include Top 10 Fairfax County Employers Northrop Grumman, Lockheed Martin Employer Number of Employees Corporation, Science Applications International Innova Health Systems +10,000 Corporation, Booz Allen Hamilton, Capital One Booz Allen Hamilton 7,000 8,000 and BAE Systems. The Fairfax County economy continues to outpace the national economy. The recent focus on national defense will continue to drive growth in the areas large defense/aerospace industry in the coming years. In fiscal year 2003, federal procurement spending in Fairfax County was $9.6 billion, contributing significantly to the regional economy.Northrop Grumman Science Applications International Inc. Sprint Nextel Lockheed Martin Freddie Mac Computer Sciences Corp. Navy Federal Credit Union Raytheon 7,000 8,000 6,000 7,000 4,000 5,000 4,000 5,000 4,000 5,000 3,000 4,000 2,000 3,000 2,000 3,000

Although intelligence spending is classified, it is estimated that the total intelligence budget is between $30 billion and $35 billion. Two of the largest benefactors of post-9/11 budget increases are purported to be the Central Intelligence Agency (CIA) and the National Reconnaissance Organization (NRO); both are headquartered in Fairfax County. As the employment graph to the right shows, the economy in Fairfax is very diverse. The services indirectly accounts for 57%, while the trade and government industies account

FAIRFAX C O UNTY, VA ESTABLISHMENTS BY IND USTRY SEC TO RTrade 14.3% Finance, Insurance & Real Estate 6.6% Construction 6.6% Services 57.1% Transportation Utilities & Comm. 2.2%

Government 13.2%

Other 0.0%

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ECONOMIC OVERVIEW (continued)for 14% and 13%, respectively. Economists predict that Fairfax County will continue to outperform the rest of the state and the nation in the foreseeable future. Engineering, business services, construction, defense and intelligence spending have historically been and will continue to be the main economic drivers. In addition, low costs relative to Suburban Maryland will continue to attract business development. Strong demographic trends will bolster the countys real estate, retail and service industries.Demographic & Economic Profile Fairfax County 1,041,200 1,133,000 7.4% 8.8% 38.1 58.5% United States

In addition to significant public funding, Fairfax County continues to benefit from strong venture capital investment. In 2004, Fairfax County received $196 million in venture capital, which represents 24% of all venture capital invested in metropolitan Washington, DC and 67% of all venture capital invested in Virginia. The combination of federal procurement and private investment has stimulated the Fairfax County economy, resulting in strong employment conditions. Fairfax County Population & Employment As part of the nations fourth-largest metropolitan area, Fairfax County has become an extremely popular destination for young professionals and affluent families wishing to take advantage of its strong local economy and high quality of life. The 2005 U.S. Census states: The population in the county reached 1,041,200 people in 2005, representing a 7.4% increase from 2000. The total population in Fairfax County is expected to reach over 1.1 million by 2010. High intellectual capital provides employers within the county a diverse workforce.Fairfax County, VA Labor Force and Unemployment RateLabor Force Unemployment Rate

Population (2005) 296,410,404 Projected Population (2010) 308,935,581 % Growth 2000-2005 5.3% % Growth 2005-2010 4.2% Median Age 36.4 % Labor Force with Bachelors 27.2% Degrees or higher % Labor Force with Graduate or 27.3% 9.9% Professional Degrees Median Household Income $94,610 $46,242 (2005) Median Home Value (2005) $517,600 $167,500 Source: U.S. Census Bureau; Fairfax County Government

The Fairfax County economy is strong and has demonstrated meaningful employment growth over the past several years. In the past twelve months ending October 2006, the Fairfax County economy gained approximately 17,602 jobs, representing a 3.1% increase and accounting for nearly one-quarter of all jobs added in the Washington, DC MSA. Additionally, the unemployment rate shrunk to 1.9%, significantly below the national rate of 4.5%, as well as metropolitan Washingtons unemployment rate of 2.9%. The continued expansion of the areas population base will replenish the countys labor force as the baby boom generation begins to retire during the next 10 years,

600,000

6.0%

400,000

4.0%

200,000

2.0%

0'94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 Oct '06

0.0%

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ECONOMIC OVERVIEW (continued)enabling local industries to expand both their workforce and their operations. Only one in five residents commutes into the District for work; the majority of county residents work in the county. In addition to its population growth, Fairfax County benefits from an affluent population; it is ranked as the second wealthiest county in the United States, with a median household income of $94,610, just behind neighboring Loudoun County. In comparison, the national median household income is $46,242 and the Virginia median household income is $52,000. There are more than 10,000 households with a net worth greater than $1 million and more than 130,000 households with a net worth greater than $500,000. Housing Due to the expansive growth of the local population base, the Fairfax County residential market has experienced an increase of 78,836 housing units since 1990. Despite the increase in supply, Fairfax Countys effective residential rental rate has continued to experience steady increases, climbing to $1,157 in 2004. The residential housing market is one of the strongest in the nation due to the demand for housing within the area. Strong public schools, numerous amenties and close proximity to Washington, DC make Fairfax County a desirable place to live. The median sale price within Fairfax County for single-family homes and townhouses was $415,000 in 2005, up from $288,585 in 2001a 43.8% increase. Last year alone, prices increased 19.3%. Education Fairfax County offers some of the best public school systems in the country. Fairfax County is served by 206 schools: 136 elementary schools, 22 middle schools, 4 secondary schools and 21 high schools. In addition, residents have access to numerous private and parochial schools. Residents of Fairfax County benefit from over 40 institutions of higher education in the metropolitan Washington, DC region, including Georgetown University, Johns Hopkins University, University of Maryland, George Washington University, American University and the University of Virginia, among others. These colleges and universities not only provide Fairfax County with a well-educated workforce, but also a consistent source of employment for the local economy. The proximity of numerous institutions of higher education provides Fairfax County residents with access for opportunities to pursue advanced degrees or additional training. Of all Fairfax County residents over 25 years old, 58.5% hold bachelors degrees or higher, compared to the national average of 27.2%. This, combined with a local public school system which has been recognized by the State of Virginia for its high quality of educational instruction, provides Fairfax County residents with tremendous education opportunities and provides local firms with a highly skilled workforce.Fairfax County, VA Educational Attainment of Labor ForceLess than H.S. Diploma 9% College Degree 30%

Associates Degree 6% High School 15%

Graduate Degree 27%

Some College 13%

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OFFICE MARKET OVERVIEW (WASHINGTON/NOVA/FAIRFAX/WESTFIELDS)Introduction The metropolitan Washington, DC office market sustained its place as one of the leading office markets in the country as of year-end 2006. Strong leasing activity by both the public and private sectors accounted for more than 10.8 million square feet of net absorption. As a result, the regional vacancy rate has dropped to 8.0%. The average asking rent for the metropolitan region increased to $31.21 per square foot, a 7.7% increase from the beginning of 2005. Rental rates in Class A properties spiked between 8% and 20% depending on the market due to the high demand for quality space. Strong economic and employment fundamentals tied with increased federal government spending, largely by the Departments of Defense and Homeland Security, have contributed to the increasingly competitive dynamics of the regional office market over the past several years. The region gained approximately 77,300 jobs in the 12 months ending October 2006 and has gained over 260,000 jobs since June 2002. This brought the unemployment rate down to 2.9% in the 3rd quarter of 2006, which is well below the national average of 4.8%. GDP in the metropolitan region grew by 4.1%, as compared to 3.5% nationally in 2005. Job growth has stemmed from both public institutions and private companies. Regional defense spending, and especially intelligence spending, has contributed to strong job growth. Northern Virginia Overview Northern Virginia is the largest market in the Washington, DC metropolitan region with 150 million square feet of competitive office space comprising Arlington, Fairfax, Loudoun and Prince William Counties and the cities of Alexandria and Falls Church. Fueled by high levels of federal spending, rapid job growth and population expansion, the Northern Virginia region has become one of the strongest suburban real estate markets in the country. Over the past several quarters, positive net absorption, rising rental rates and falling availability have characterized commercial office trends in Northern Virginia. The Northern Virginia market has experienced a dramatic decrease in vacancy, from 14.3% at year-end 2003 to its current level of 8.9% (year-end 2006). Every major submarket in Northern Virginia (except Old Town Alexandria, Crystal City and Herndon) has a single digit vacancy rate. While new construction delivered 4.0 million square feet in 2006, available office space remains limited as 53% of new projects are pre-leased, in addition to a 2006 net absorption of 4.1 million square feet. Approximately 21% (849,000 square feet) of all net absorption in Northern Virginia occurred in the Rt. 28 South submarket, where Eastbrook at Westfields is located. Given the strong leasing momentum outlined above, rental rates in the market are expected to further increase 7-10% in the next 18-24 months. One of the primary drivers of demand in northern Virginia is federal procurement spending. Federal procurement represents the largest and fastest-growing source of federal spending. More than $52 billion in procurement spending is expended in the metropolitan Washington, DC area annually, representing approximately 16% of all national procurement. Northern Virginia has been the major beneficiary of this spending, with approximately $0.50 of every procurement dollar spent in the region ending up there. Historically, procurement spending has increased an average of 7% per year, but since September 11, 2001 increases have averaged 16.5% per year. As a result, federal procurement contracts awarded to the metropolitan area increased more than 79% from 2001-200419% in 2004 alonedue to large discretionary spending increases in the Department of Defense and Department of Homeland Security budgets.

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OFFICE MARKET OVERVIEW (WASHINGTON/NOVA/FAIRFAX/WESTFIELDS) (continued)Federal procurement translates directly into jobs, which in turn contribute to growth in the office and flex markets. According to Stephen Fuller, every $1 billion spent equates to 7,000 jobs*. Thus, there are approximately 182,000 jobs* in Northern Virginia as a direct result of federal procurement. Growth in federal procurement and jobs over the last few years has been substantial. In 2004, there were 42,000 new jobs created in the Washington, DC region as a result of procurement, representing 65% of 2004s total job growth (65,000 jobs). In 2005, increased federal procurement spending translated into an additional 50,000 new jobs. Spending, and thus gains in regional employment, is expected to grow through 2008, but at a slower pace than experienced during the past four years, due to smaller increases in both the Department of Defense and Homeland Security 2006 budgets. The first significant change in the local economy could occur in 2009, as BRAC initiatives begin to be implemented and a new administration sets revised spending priorities. However, even if that procurement slows to its historical level of 7% annually, this normalized growth rate will still create more than 25,000 new jobs annually in the coming years. Of this, approximately 12,250 will be earmarked for Northern Virginia, representing projected net absorption levels of more than 1.8 million square feet annually exclusively from federal procurement. Route 28 South Submarket Overview Market Fundamentals The activity is very visible in Fairfax County, and especially in the Rt. 28 South submarket where there have been a number of new and pending leases from defense contractors and government agencies. The Route 28 South submarket is located southeast of Dulles International Airport. The submarket stretches south along the border with Loudoun County to Manassas Battlefield National Park, then southeast to the intersection of Compton Road and Route 645, then north to the Herndon border before turning west to the airport. It contains the towns of Chantilly and Centreville, along with I-66, Route 50 and Route 28. The National Reconnaissance Office (NRO) is currently the dominant demand generator in the Route 28 South submarket. Located in Westfields Corporate Center, the NRO is a Department of Defense agency that is staffed by members of the DoD and the Central Intelligence Agency. The NRO designs, builds and operates all the nations reconnaissance satellites, distributing the information it gathers to the various arms of the national intelligence community for analysis. The agency occupies a fourbuilding complex on 68 acres in the Westfields Corporate Center. In the future, this market will continue to be substantially dominated by federal intelligence agencies.*50% of the $52 billion in metropolitan Washington, DC procurement funding at the ratio of 7,000 jobs per $1billion equates to approximately 182,000 jobs.

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OFFICE MARKET OVERVIEW (WASHINGTON/NOVA/FAIRFAX/WESTFIELDS) (continued)Numerous contractors are located in the immediate vicinity, including Aerospace Corporation, Boeing, CACI International, Lockheed Martin, Northrop Grumman and Titan Corporation, among others. Other government agencies including the FBI will have a large presence in this market as well. In addition to NRO, a secure government agency is building a campus that will ultimately be upwards of 1.2 million square feet at Dulles Discovery, located north of the Subject Property on Rt. 28, across from Dulles International Airport. The first phase of this campus, totaling approximately 400,000 square feet, is currently under construction and will deliver in late 2007. This agency has reportedly exercised its option for the second phase of occupancy at Dulles Discovery and is understood to be out of space already on its new campus. In addition, the FBI is also close to finalizing a lease for approximately 260,000 square feet in Westfields. These two tenants, along with NRO, will continue to fuel demand from defense and intelligence contractors. Route 28 South is positioned to compete aggressively and is considered a cost effective market from a tenants perspective with the secure government tenants occupancy of its Dulles Discovery campus in the fourth quarter 2007. Contractors are already beginning to commit to space so that they can have proximity to this campus. The two primary alternatives for contractors seeking to do business with the agency at this location include Rt. 28 South (namely Westfields) and Dulles Corner (near the intersection of Rt. 28 and the Dulles Toll Road). Both of these markets can reach the Dulles Discovery campus within a few minutes drive. Target rental rates for new construction in Dulles Corner range from $35.00 to $36.00 per square foot while rents in Westfields are upwards of $30.00 to $32.00 per square foot. Thus, rental rates in Westfields are approximately 7%-10% less compared to Dulles Corner. Government contractors are notoriously price sensitive. As a result, Westfields substantial rent advantage compared to Dulles Corner positions it to capture demand stemming from the new secure government tenant campus. Supply The Route 28 South Submarket contains 9.4 million square feet of office space, of which 6.7 million square feet is Class A quality. Westfields accounts for approximately 50% of the space in this submarket with 4.6 million square feet. This market has seen a dramatic reduction in the vacancy rate over the past year several years. The Class A vacancy rate dropped from 17.0% in the fourth quarter of 2003 to 7.01% at year-end 2006, resulting in a rental rate increase of 7% in 2006 alone.ChantillyRt. 28 South Submarket 2006 Q 4 Statistics Vacant YTD Net Supply % Absorption 6,676,012 7.01% 712,497 1,641,987 13.76% 143,121 1,097,651 15.59% (6,461) 9,415,650 9.19% 849,157

Class A Class B Class C Total

Average Rent $29.64 $26.66 $22.86 $27.70

Although there are currently six blocks of existing space available in the Route 28 South submarket, only one of these blocks is truly competitive: Dulles Gateway Phase One. As the chart below notes, much of this space has or will be removed from the market shortly. While Victory Point (see below) has in excess of 100,000 square feet, it is an older asset with dated finishes, a very high core factor and a less than desirable parking arrangement. The leasing community believes that this building will remain statically vacant. Trinity Centre Two (see below) is the other block of space that is currently vacant, but this space is considered too far south to compete with product in Westfields.

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OFFICE MARKET OVERVIEW (WASHINGTON/NOVA/FAIRFAX/WESTFIELDS) (continued)Route 28 South Submarket Large Blocks of Space > 50,000 SF Size (SF) Avail Built Rent 96,920 51,860 2006 $28.00 115,563 147,624 147,966 115,563 127,978 122,322 2006 1998 1989 $29.00 $27.00 $26.50

Building Lincoln Park II 3076 Centreville Rd. Independence Ctr 2 15040 Conference Ctr Dr. Dulles Gateway Ph 1 13921 Park Center Rd. Victory Point at Westfields 14200 Park Meadow Dr

Comments LOI to Pinnacle CSI for 40,000 SF 15,000 SF (LOI) Competitive Difficult to multi-tenant Very high core factor Parking in rear of building Under contract to an owner/user

Park Stone Place 76,391 76,391 2006 N/A 5155 Parkstone Dr Trinity Centre 2 150,000 100,000 2006 $34.50 Not competitive, too far south 5860 Trinity Pkwy South of I-66 Note: Highlighted buildings are considered to be competitive with Eastbrook at Westfields.

Demand Historically, the Route 28 South submarket has experienced 415,000 square feet of net absorption annually over the past 10 years. Extensive government contractor leasing in the Route 28 South submarket resulted in net absorption of 849,000 square feet at year-end 2006. Federal contractors comprised the Rt. 28 South Submarket submarkets top three leases, including one of the largest leases in NoVa during Large Tenants in the Market 2006 by Northrop Grumman at Washington Tech Park II. Northrops 166,664 Tenant Name SF Needed square foot lease, combined with a 105,870 lease by Apptis, and a 69,000 square FBI 280,000 foot lease by Mantech, helped reduce direct vacancy rates from 9.9% in the second Mantech 200,000 quarter of 2006 to 9.2% in the third quarter, and provided the majority of the CACI 175,000 submarkets absorption. Other known pending leases will further push net BAE 150,000 absorption upwards. The FBI is looking in Westfields for approximately 280,000 ASC 125,000 square feet, and there are leases pending at Lincoln Park II and Independence Argon 125,000 Center. Tenant activity in the Route 28 South submarket was very strong in 2006 NGIT (2009) 110,000 with nearly two million square feet of verifiable demand, consisting mainly of GSA NGIT (2007) 80,000 and government contractors. In addition to the more than 849,000 square feet of net absorption to date, Jones Lang LaSalle is tracking a number of active tenants demands for space in the Route 28 South submarket totaling approximately 1.5 million square feet. There are 15 requirements for space in excess of 20,000 square feet. As the chart illustrates, demand drives substantially from government contractors, which are serving NRO and the anticipated occupancy of the secure government tenant in the fourth quarter of 2007.Red Cross General Dynamics Aerospace Mitre TMA L3 Crucial Security Total 75,000 60,000 40,000 25,000 20,000 20,000 20,000 1,505,000

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OFFICE MARKET OVERVIEW (WASHINGTON/NOVA/FAIRFAX/WESTFIELDS) (continued)Development As a result of strong demand from NRO and contractors, this market has nearly doubled in size over the past five years. In 2006, six buildings totaling slightly more than 700,000 square feet have delivered in this market. These are currently 62% leased. In addition, there are currently 10 buildings under construction totaling approximately 1.4 million square feet, which are currently approximately 10% preleased.Rt. 28 South Development Activity Buildings Under Construction Building Stoneleigh 2 Westfields 4840 Westfields Blvd Penrose Center 14426 Penrose Place Plaza East II 14291 Park Meadow Dr Dulles International Center 13857 McLearen Dr Commonwealth Center 14370 Newbrook Dr Plaza East I 14295 Park Meadow Dr Mission Ridge 1 15020 Conference Center Dr Mission Ridge 2 15030 Conference Center Dr Stonegate II Conference Center Dr 2900 Towerview Rd Total Owner Bldg SF % Preleased 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% 0.00% 9.9% Lockheed Martin (145,000 SF) Shell U/C for $240 / SF (requires $60 TI) Notes

Normandy Zumot RE Mgmt Tishman Speyer ING BPG Tishman Speyer Carlyle Carlyle OPUS

105,833 150,384 123,966 202,992 158,988 123,426 156,041 151,946 145,000 140,000 1,458,576

When combining buildings that delivered in 2006 and buildings that are under construction (2007-2008 delivery dates), along with current levels of leasing, the projected supply pipeline could be substantially leased. Proposed Buildings In addition to projects under construction, there are a handful of proposed projects in Westfields. Only three of the available projects sites in Westfields will directly compete with the Eastbrook project. All of these are on the east side of Westfields. These include Plaza East (Tishman Speyer), Stoneleigh (Normandy) and Commonwealth Centre (Berwind Property Group). Plaza East consists of two buildings totaling approximately 245,000 square feet, both of which are currently under construction. The buildings will deliver in mid 2007. Stoneleigh includes two buildings totaling 210,000 square feet. One of these recently delivered (100% leased to Apptis) and the other is currently under construction. Commonwealth Centre is a large mixed-use site that will be phased in over many years and ultimately include office, retail and hotel. The office component will be approximately 450,000 square feet. There is one building

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OFFICE MARKET OVERVIEW (WASHINGTON/NOVA/FAIRFAX/WESTFIELDS) (continued)currently under construction totaling about 159,000 square feet. For additional details of development in the Westfields area, please refer to Section VII of this offering memorandum. Rental Rates Rental rates are currently $29.64 per square foot for Class A space, which is up 14.4% over last quarters average asking rent of $25.91 per square foot, and 25.6% above a year ago. This dramatic increase is largely attributable to both the growing government contractor and IT demand as well as to new high-quality space being delivered with rental rates ranging from $30.00 to more than $32.00 per square foot. Conclusion Sustained Homeland Security, defense and especially intelligence spending in the region will provide the key to the areas ability to absorb quickly the new space being delivered to the market. The effects of this can already be seen with the Dulles Discovery campus, pending leases from FBI and multiple large requirements from contractors. Tenant demand from government contactors and the GSA will be driven by a need for employee access, the ability to meet security and corporate identity requirements and proximity to NRO and the secure government tenant. Westfields is well positioned to capture this impending demand. Based on the projected supply pipeline and current tenant demand, Eastbrook at Westfields will deliver at a time when the market has very little competition from new product.

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LEASE COMPARABLESProperty: 2340 Dulles Corner Boulevard

Tenant: Deal SF: Rental Rate: Date:

Northrop Grumman 277,000 $28.75 psf FS December 2005

Term: TIs: Escalation:

10 Years $55.00 psf 3.00%

Property:

4805 Stonecroft Boulevard


TASC 130,000 $28.50 psf FS December 2007


10 Years $35.00 psf 2.50%

Property:

15010 Conference Center Drive


Northrop Grumman 166,664 $28.50 psf FS November 2006


10 Years $69.00 psf 2.75%

Property:

12825 W orldgate Drive


United States Customs Service 60,437 $28.00 psf FS July 2006


5 Years $20.00 psf N/A

Property:

Liberty Center


SAIC 158,920 $19.50 psf NNN April 2006


10 Years $45.00 psf 3.00%

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SALES COMPARABLESProperty: 14660 Lee Rd.Liberty Center 1 at Westfields

Price: Buyer: Seller: Size:

$30,946,298 ($387 psf) Westfields Liberty I, LLC Parcel 45 Associates, LP 80,000 SF

Date: Year Built: Cap Rate:

June 2006 1998 N/A

Property:

14668 Lee Rd.Liberty Center 3 at Westfields


$54,756,013 ($345 psf) Westfields Liberty III, LLC Liberty Center III Associates, LP 158,920 SF


June 2006 2006 N/A

Property:

2250 Corporate Park Dr.Plaza Ridge II


$48.77 million ($309 psf) ACP/2250 Corporate Park Owner, LLC ACP/2250 Corporate Park Drive, LLC 158,015 SF


August 2006 2001 N/A

Property:

14664-14672 Lee Rd.Liberty Center


$140 million ($293 psf) Duke Realty Mark Winkler Company 477,000 SF


March 2006 Proposed N/A

Property:

14700 Lee Rd.Opus at WestfieldsBldg. 1


$23.95 million ($283 psf) Columbia Equity Trust, Inc. Opus East, LLC 84,652 SF


August 2005 2000 7.20%

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LAND SALE COMPARABLESSELLER BUYER SALE PRICE

PROJECT

PROPERTY DESCRIPTION

Building Size: 480,000 SF Land Area: 5.28 Acres Projected Completion: 2007 Dulles Station 3 & 4 Dulles Toll Road @ Centerville Road Class: A Sale Date: 12/2005 Herndon, VA Equity Office Properties / Crimson Partners Washington Real Estate Investment Trust $24,700,000 $45.00/FAR

Notes: Sale includes the right to also develop residential space.

Reston Eastpointe 11091 Sunset Hills Rd Reston, VA

Building Size: 195,890 SF Land Area: 5.53 Acres Projected Completion: 2007 Class: A Sale Date: 1/2006 A/C Associates II LP

Prudential Real Estate Investors

$7,850,000 $40.07 / FAR

Dulles View Rt. 28 / Frying Pan Road Herndon, VA

Building Size: 353,887 SF Land Area: 7.90 Acres Projected Completion: 2007/8 Class: A Sale Date: 8/2006 Penzance Companies

Fifield Development

$13,421,000 $37.92 / FAR

Dulles Corner - Parcel 13 Rt. 28 (South of Dulles Toll Rd) Herndon, VA

Building Size: 650,000 SF Land Area: 13.34 Acres Projected Completion: 2007 Class: A Sale Date: 9/2005

LB Dulles Acquisition LLC

Prudential Real Estate Investors

$22,816,360 $35.00/FAR

Notes: Sale includes the right to develop two office buildings totaling approx. 650,000 SF and a hotel totaling approx. 220,000 SF.

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LAND SALE COMPARABLES (continued)SELLER BUYER SALE PRICE

PRO JECT

PRO PERTY DESCRIPTIO N

Building Size: 1,100,000 SF Land Area: N/A Commonwealth Centre at Westfields Projected Completion: Various Class: A Chantilly, VA Sale Date: 11/2005 N/A Berwind Property Group $41,750,000 $34.79 / FAR

Woodland Park Chantilly, VA

Building Size: 1,850,000 SF Land Area: N/A Projected Completion: Various Class: A Sale Date: 10/2005 Walton Street Tishman Speyer

$64,750,000 $35.00 / FAR

Lake Fairfax Bus Ctr 6 1757 Business Ctr Dr Reston, VA Mason Hirst

Building Size: 250,000 SF Land Area: 11.10 Acres Projected Completion: 2007 Class: A Sale Date: 2000 Van Ness Properties

$8,100,000 $32.40 / FAR

Bridgewater Corporate Center 11325 Random Hills Rd Fairfax, VA Cherrywood Plaza Partners, LLC

Building Size: 200,000 SF Land Area: 5.29 Acres Projected Completion: 2006 Class: A Sale Date: 10/2004

Archon Group

$5,850,000 $29.25 / FAR

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LAND SALE COMPARABLES (continued)SELLER BUYER SALE PRICE

PRO JECT

PRO PERTY DESCRIPTIO N

Stonleigh I & II 4800 Westfields Blvd. 14300 Parkmeadow Dr. Chantilly, VA REO Sale Starco $5,600,000 $26.45 / FAR

Building Size: 211,700 SF Land Area: N/A Projected Completion: 2007 Class: A Sale Date: 2000

Notes: Land was acquired via a foreclosure sale.

Mission Ridge 15020 Conference Ctr Dr. 15030 Conference Ctr Dr. Chantilly, VA Starco Carlyle

Building Size: 303,892 SF Land Area: N/A Projected Completion: 2007 Class: A Sale Date: 2005

$8,000,000 $25.87 / FAR

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SPONSOR AND PROJECT TEAMPenzance CompaniesPenzance owns, develops and manages commercial properties. Founded in the mid-1990s by principals Victor Tolkan and Julia Springer Tolkan, Penzance focuses on investment grade real estate opportunities in the metropolitan Washington, DC area and has a proven track record of providing stable returns above the market rate. It is an integrated commercial real estate firm that provides value-added strategies through its in-house development, property and project management groups. Penzance employs more than 30 real estate professionals in its headquarters in Washington, DC. The Penzance team combines extensive knowledge of the DC-area real estate market with a keen ability to identify, structure and realize transactions efficiently and cost-effectively. It is an integrated company that adds significant value through its aggressive, disciplined management operations. Since 2003, Penzance has acquired 12 properties valued in excess of $500 million, both existing, as well as development assets. It targets properties in Washington, DC, Northern Virginia and Suburban Maryland with a primary goal of acquiring below replacement cost and maximizing the full potential of each property. Penzances creative entrepreneurial approach has attracted such nationally recognized investment partners as Chicagobased Transwestern Investment Company, LLC and Los Angeles-based American Realty Advisers. Development partners have included Trammell Crow, Real Estate Capital Partners and OConnor Capital. Focused on the Washington, DC metropolitan area, and cited by the Urban Land Institutes Emerging Trends in Real Estate 2004 as the only market that earns unwavering endorsement, Penzance, notable for its responsiveness and flexibility, is uniquely positioned to continue to acquire and develop quality DC-area properties, adding significant value and affording a unique opportunity for institutional and individual investors alike. Principals Victor K. Tolkan Managing Principal and CEO Mr. Tolkan has directed acquisitions and development at Penzance since 1996, when he co-founded Penzance. Prior to that time, he was the Real Estate Portfolio manager for CNV Partnership, a private family enterprise that owned and managed national retail, industrial and commercial properties. In that position, he was responsible for site acquisition, development, leasing, management, tenant build-out and design for more than 70 properties. Mr. Tolkan also served as President and CEO of The Door Store, a retail company which, at its peak, had sales in excess of $50,000,000. Mr. Tolkan is the spouse of Julia Springer Tolkan. Julia Springer Tolkan Managing Principal and Chairman Ms. Tolkan has directed legal and financial affairs at Penzance since 1996, when she co-founded Penzance. Ms. Tolkan is an attorney and economist, and she has experience in negotiating and structuring transactions, including acquisitions, dispositions, development, equity, debt, capitalization and leasing. Prior to 1996, she served as clerk for United States District Judge Peter Beer (ED, Louisiana) and as an economist for the Board of Governors of the Federal Reserve and at Resources for the Future. She was selected for fellowship in the Ph. D. Economics Program at MIT. Ms. Tolkan earned her JD from the University of Virginia School of Law and was an attorney in the real estate and corporate transactions group at the law firm of Shaw Pittman LLP. Ms. Tolkan is the spouse of Victor Tolkan.

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SPONSOR AND PROJECT TEAM (continued)Peter N. Greenwald Chief Administrative Officer. Having worked with the principals and founders of Penzance for more than a decade in an advisory capacity and as a member of the Board of Directors, Mr. Greenwald has since 2004 been a committed member of the Penzance team focusing on equity relationships and communications with partners in the enterprise, as well as legal and business strategies. He was Executive Vice President, General Counsel and Secretary of Retired Persons Services, Inc., a company that, at its peak, had sales in excess of $400 million. He had responsibility for corporate communications, marketing and business strategies in addition to serving as the companys chief liaison with clients. He also had responsibility for the companys legal affairs and Board relations. He has been responsible for developing programs and products from conception to implementation in a broad range of areas and industries from insurance and financial products to pharmacy services. Mr. Greenwald negotiated lease and development terms on the tenants behalf for what was, at the time, the largest non-governmental lease transaction in Washington, DC history. He serves as a member of the Board of Directors of the Mount Vernon Triangle Community Improvement District in Washington, DC and the Rosslyn Business Improvement District in Virginia. He founded the New York law firm of Greenwald & Strongin PC after having been a partner at Rosenman & Colin, now KMZ Rosenman. Mr. Greenwald received his AB and AM from Harvard University and his JD from the New York University School of Law. M. Dana Moore Senior Managing Vice President Ms. Moore brings to Penzance more than 20 years of capital marketsexperience. Prior to joining Penzance, Ms. Moore was with Fannie Mae for five years, most recently as Chief Credit Officer and Senior Vice President, responsible for managing a multi-family portfolio of $138 billion in debt and equity investments, from construction through permanent financing, and a staff of 85 real estate professionals. Her previous experience includes nine years at the Bank of America, where she served as Senior Vice President and Credit Officer, managing a debt portfolio in excess of several billion dollars, as well as Chief Underwriter for the Nations Link Conduit start-up group as it grew to $7 billion in acquisitions, and to a staff of 120. Prior to joining Bank of America, Ms. Moore served for six years in multiple capacities at the First National Bank of Maryland. Ms. Moore received her BA in Economics from Dickinson College, a Certificate of Accounting from the University of Baltimore and has completed the course work for the Masters in Real Estate from Johns Hopkins University. Ahed Shakhsheer Senior Vice PresidentDevelopment Services Mr. Shakhsheer brings 27 years of experience in all aspects of design, project and construction management and general contracting to Penzance. His work has spanned the full range of development challenges including residential, retail, oil refineries, airport and air cargo facilities, and large complex corporate headquarters, for example, for Freddie Mac, both in the U.S. and abroad. Before joining Penzance, Mr. Shakhsheer was with AFCO (Aviation Facilities Company, Inc.) headquartered in McLean, VA, where he was responsible for, among many other projects, the design and construction of 50,000 square foot air cargo buildings in six cities in the Northeast, the Mid-Atlantic and Southeastern sections of the U.S. In addition, he spearheaded the ground-up design and construction of the new airport in Branson, Missouri. Mr. Shakhsheer earned his engineering degree from Texas A&M University in 1978.

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SPONSOR AND PROJECT TEAM (continued)Robert L. Zmuda, CPA Senior Accounting Officer Mr. Zmuda brings 12 years of real estate experience to Penzance, most recently as the Group Financial Manager of the Mid-Atlantic region for Cushman & Wakefield. Prior to that he was the Regional Director for Insignia/CBRE where he managed the accounting department responsible for more than nine million square feet of property. He worked for the John Akridge Companies, where he headed up the accounting group for this DC-area developer. Mr. Zmuda has a BS in accounting and management from St. Francis University and earned an MBA from the University of South Carolina. Matt Pacinelli Director of Leasing Mr. Pacinelli joined Penzance from Glenborough Realty Trust, Inc., where, as Director of Leasing, he was responsible for the generation of rental income from the 1.0 million square foot Washington, DC metropolitan area office portfolio. His expertise in implementing creative asset strategies, combined with his lease negotiation skills and understanding of tenant construction and property management, led to substantial increases in the portfolios occupancy rate during his tenure. At CB Richard Ellis, Mr. Pacinelli represented Fortune 500 companies, as well as divisions of the U.S. Government, in meeting domestic and international real estate requirements. Mr. Pacinelli received his BA in Political Science from American University. Representative Projects 455 Massachusetts Avenue, NW, Washington, DC is a 245,755 square foot Class A office building located on Massachusetts Avenue between 4th and 5th Streets in the heart of the Mount Vernon Triangle. Construction commenced in late 2005, and completion is scheduled for 4th quarter 2007.

Courthouse Place, Arlington, VA is a 115,172 square foot Class A office building located at 2000 N. 14th Street in Arlingtons Courthouse submarket. The nine-story asset was built in 1987. Courthouse Place offers an attractive brick and glass facade with aestetically appealing copper covered turrets. The buildings lobby, restrooms and common areas were all recently renovated. Penzance Companies acquired the asset in 2004.

1130 Connecticut Avenue, NW, DC is a 218,748 square foot Class A office building located in the heart of Washington DCs CBD, across from the landmark Mayflower Hotel. The building was built in 1986. The architecturally distinguished building, with its interior atrium, landscaped lobby and private balconies, is managed by Penzance Management, one of the Penzance Companies. Penzance acquired the building in a joint venture with Greenstreet Niosi Capital Partners in April 2004.

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SPONSOR AND PROJECT TEAM (continued)Ballston Gateway, Arlington, VA is a 136,688 square foot office building built in 2002. Penzance contracted for this prime Ballston, Virginia Metrorail site in 2001, and proceeded with the development of the site in a joint venture with American Realty Advisors.

Photo Unavailable

13618 McLearen Road, Herndon, VA is a 39.6 acre development site with potential for an office park or mixed-use residential community, or both. It is located near the intersection of Route 28 and McLearen Road in Herndon, Fairfax County, Virginia.

1500 Wilson Boulevard, Arlington, VA is a17-story, 247,726 square foot office building built in 1971, with an accessory building with 1,183 square feet of rentable space. The building possesses a two-story underground parking facility with 260 parking spaces.

1101 Connecticut Avenue, NW, Washington, DC is a 12-story(including two below-grade), 178,158 Class A office building built in 1978. It is located in the heart of the Central Business District at the corner of 17th and L Streets, NW.

21740 Beaumeade Circle, Ashburn, VA is a 58,682 square foot office building built in 2006.

44675 Cape Court, Ashburn, VA is a 73,873 square foot office building built in 2006.

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SPONSOR AND PROJECT TEAM (continued)Architectural, Mechanical & ElectricalCMSS Architects will be the architect and perform related functions. A leading architectural design firm in Hampton Roads, Virginia and metropolitan Washington, DC, CMSS Architects is a solution-driven integrated design and planning practice composed of architects, interior designers, urban planners and landscape architects. Founded in 1982 as a partnership, CMSS Architects has grown to become a leading design firm, over 75 strong, serving local, national and international clients. It has earned the reputation as a leader in architectural design, urban planning, interior design and landscape design, through an integrated approach that delivers pride of place and economic success to its clients. General ContractorTo be determined. Construction/Project ManagementTo be determined. Leasing BrokerTo be determined. Financing AgentJones Lang LaSalles Real Estate Investment Banking group (REIB) is the financing agent for the project. REIB has a deep knowledge and network across a range of both public and private capital markets, enabling them to creatively assess and develop the optimum financing strategy for various

Documents

Eastbrook at West Fields Debt Package