Stanford Corporate Centre

Dallas, Texas

The Stanford Corporate Centre, located in the Far North Dallas office market, offers an exceptional location along the Dallas North Toll way just north of LBJ Freeway, effectively, the heart of business and tourist trade in Dallas. This location provides a strong amenity base, including the Dallas Galleria Mall, Valley View Centre and Village on the Parkway, proximity to the city’s premier residential areas (Park Cities, Preston Hollow, Plano and Frisco) and efficient access to all of the city’s primary commercial centers, including DFW International Airport, Addison Airport, Legacy Business Park and Preston Center.

The Far North Dallas Office Market has historically been DFW’s demand leader, absorbing more than 11 million square feet of space since 1998, an average of nearly 1.2 million square feet per year. During 2006, the submarket experienced net absorption of 1.2 million square feet according to CoStar, by far the largest net absorption of any submarket and accounting for 23% of DFW’s total net absorption.

Currently, it is 99% leased to an attractive mix of local and national credit tenants including EnCana Oil & Gas Inc. and Clear Channel’s AMFM Operating Inc. Combined, they lease over 60% of the property with leases extending through 2012 and 2013, respectively. These existing lease terms provide consistent cash flow with fixed increases and limited near term rollover exposure.

The Property’s current average in-place rent is approximately $4.00 below the current market rate for such a property. As such, strong upside potential exists through the renewal of current tenants in a significantly higher rate environment. Furthermore, the Property’s potential sales price will represent a substantial discount to replacement cost.

The Stanford Corporate Centre is also home to Telos Fitness Center, one of the most successful private health clubs in North Dallas. The 63,000-square-foot Club is located adjacent to the building on the southern portion of the Property with the current lease term in place through July 2013. The Club features state-of-the-art cardiovascular and strength training equipment as well as personal fitness services, indoor and outdoor jogging paths, racquetball courts, pilates and yoga classes, a 25-meter lap pool, full spa services, chiropractic services, full-service locker rooms, a conference room and a full-service café.

STANFORD CORPORATE CENTRE EXECUTIVE SUMMARY
Dallas/Fort Worth currently ranks second in the nation for job growth with 88,700 jobs created for the 12-months ending September 2007. The area ranked fifth nationally in job growth for 2006, creating a total of 94,500 new jobs. Over the five-year period between 2006 and 2011, Dallas/Fort Worth is forecasted by Economy.com to lead the nation in population growth and employment growth, adding 631,400 new residents and creating 361,000 jobs.

FAR NORTH DALLAS OFFICE MARKET
Far North Dallas continues to be amongst the strongest submarkets in Dallas in terms of absorption, occupancy, and rental rates. The strength of the market is more evident when looking at the Property’s competitive set which includes 16 Class A buildings in the southern sector of the Far North Dallas market. Encompassing over 6 million square feet, occupancy for the competitive set now stands at an impressive 90%. According to CoStar, year-over-year rent growth averaged 7.5% from first quarter 2006 through first quarter 2007. The average quoted rental rate has grown to $27.60 plus electricity, the second highest behind the Uptown market.