Opportunity

Woodland Business Park ("WBP") consists of three (3) former Tellabs facilities, totaling 213,018 square feet. WBP is situated on approximately 19 acres and is located just south of Ogden Avenue and I-88 in Lisle, Illinois. WBP property is zoning I-1 and has an abnormally high parking ratio of 5.3 cars per 1,000 square feet of office space. WBP was purchased in 2004 by an East Coast REIT. Unsuccessful in it's leasing efforts, Ownership elected to subdivide the Business Park into three (3) separate parcels in an attempt to attract a greater audience to facilitate a sale of the property. ROC Suburban purchased the property at $56 per square foot. The purchase price represented a 20% discount to market and is less than 60% of replacement cost.

Two Woodland, 4951 Indiana Avenue, is a 55,000 square foot, single story, industrial flex building, situated on 4.756 acres. The building was built in 1979 and was converted to 100% office use in 1996 by Tellabs. The building was originally designed to accommodate six (6) separate industrial units, each having its own loading dock.

Result

The plan is to return the asset to its original use (industrial flex building). Location and limited supply of this product type in the immediate area support our repositioning strategy.

Using Two Woodland as intended under the current I-1 zoning, we can reduce the parking ratio (5.3 to 1.5), thus creating an opportunity to add 20,000 square feet of rentable space to the site, and theoretically, create an additional $1.6 million dollars in value.

Opportunity

In pursuit of this property since 2001, ROC Suburban finally negotiated terms of purchase with the out of state owner in late 2006. The purchase price was $4,850,000 or $89 per square foot. The property location and visibility are exceptional, but deferred maintenance and absentee ownership had hindered leasing efforts. Occupancy was less than 80% when we took control of the property.

Employing a "hands-on" approach to management, leasing and construction, strategically investing in building improvements and vigilantly driving down operating costs resulted in improved cash flow, occupancy and value. The building achieved a 100% leasing status within 12 months.

Result

The more interesting play in this deal involved the redevelopment of the site. A plan was conceived to free up the south parking area of the site by erecting a parking deck on the north parcel to accommodate all parking needs of the existing office building. The south lot was then planned for 9,000 square foot of general retail. The plan also calls for inserting drive thru lanes on the eastern elevation of the office building allowing for retail banking on the main floor.

The redevelopment plan has been approved by the City of Naperville. Construction will commence in late 2009. With a 65,000 per day traffic count, demand for retail space at this location will be strong. Net income projections for the property are forecasted to increase by more than 80%, adding more than $5.0 million dollars of value to the project.

Opportunity

Together with an end user, purchased a 58,146 square foot industrial building from a private party. The purchase price was less than $40 per square foot and the property was located in a prominent industrial park in Wheeling, Illinois.

During due diligence, it was discovered that a cell tower on the property had an older, "pro landlord" lease document in place. The deal was structured in a way that isolated the cell tower from the building asset.

Result

Within a year, our partner expanded, taking nearly 60% of the available space, stabilizing the asset on a long term basis. Simultaneously, negotiations with the cell tower user commenced. Before the lease was renewed, we sold the cell tower income stream to a national fund for $140,000. Return on equity for the cell tower component of the deal exceeded 700%. The industrial property is still held in the portfolio, delivering a consistent 20%+ annual return to the investment group.

Opportunity

The Retail Group (“TRG”) recently acquired a 3.81 +/- acre site at the northwest corner of M-21 & State Road, Owosso, Michigan (http://ci.owosso.mi.us/). This site is adjacent to the new Home Depot, across from a Meijer and across from a K-Mart. The site had been owned and occupied by Weekley’s RV for more than 35 years. Over the past two years, TRG unsuccessfully attempted to bring a major drugstore chain to the site. The store was subsequently built at another location. Changed market conditions and Ownership’s failing health and failed business created an opportunity for TRG to purchase the site through a “short sale”. TRG was successful in negotiating the purchase at $625,000; a 54% discount to the face value of the note and 82% discount to the once appraised value. TRG’s intimate knowledge of this marketplace, the regulatory approval process and the in place entitlements, will provide a distinct advantage in creating significant value.

Result

The site can accommodate four (4) distinct parcels; three (3) primaries and one ancillary (1) self storage along the Right-of-Way. Impressive traffic counts, a cross easement with Home Depot and strong demographics lend to the site’s desirability. Additionally, Owosso is the County Seat, offers a very strong employer base in the healthcare, education and governmental sectors and excellent access to several major roadways. While parts of Michigan have been negatively impacted by the events surrounding the automotive industry, TRG believes Owosso will not be affected. The parcels will be offered as long-term ground leases with an emphasis towards the banking, fast food, grocery, and automotive sectors. TRG will also entertain offers to purchase. With a project cost basis less than $240,000 per acre, TRG will be well positioned to capitalize on even the most turbulent market conditions. TRG will attract quality, long-term tenants by offering a desirable location at very aggressive rates.

Opportunity

This building was the former Midwest regional headquarters of a national insurance company. The building was vacant when purchased for less than $12.00/s.f. and held in inventory for several years. Establishing a TIF district and creatively negotiating a redevelopment agreement with local government, a deal was made with Corinthian Colleges, Inc. (NYSE: COCO), one of the largest post secondary education companies in North America, when they signed a 10 year lease.

Result

The property was sold in 2007 for $7.4 million dollars or $94/s.f. Return on equity exceeded 10% on an annualized basis. Additionally, investor return numbers will be adjusted favorably over the next decade as proceeds from the TIF district are distributed.

Opportunity

Purchased an underperforming multi-tenant office building in the East sector of the O'Hare office market for less than $50 per square foot. Stripped the building down to the perimeter walls and retrofitted the building mechanical systems to facilitate an office condominium product. Brought 19 units to the market with a starting price of $135 per square foot.

Result

Sold out the development in 36 months. Average sales price was $155 per square foot. Project cost was $4 million dollars and total revenue exceeded $6 million dollars.

Opportunity

Acquired and repositioned an under performing 86,000 square foot flex-service property in the West O'Hare market. The buildings were purchased in 1999 from a major Midwestern Insurance Company for $42 per square foot. After vacating the property, it was converted to a 100% office use. Additionally, we facilitated the creation of a Tax Increment Financing District (TIF) at the municipal level. Total project cost was nearly $8.0 million dollars.

Result

Secured an investment grade tenant, U.S. Cellular Corporation, on a long-term lease. The net rental rate was increased from $5.00 to $13.50 per square foot and the stabilized Net Operating Income soared to over $1.35 million dollars annually. The buildings sold for $14 million in September 2003 to an institutional investor. Return on outside equity exceeded 61% on an annualized basis.

Opportunity

On the verge of being condemned by the City of Joliet for outstanding building code violations, we acquired the complex for $12,500 per unit in 1996. Located near the College of St. Francis, the property had significant upside potential.

Result

After a complete renovation, the property was 100% leased and commanded the highest rents in the local market. The property was awarded the "Community Development Award" by the City of Joliet. Tripling in value in just 24 months, the property was sold in 1999 for $1.7 million dollars. Return on invested equity was 159%.

Opportunity

In early 1998, acquired this suburban office property from a non-for-profit foundation. The asking price was less then $70.00 per square foot and considered below market at the time. The opportunity was for a sale- lease back. The in place income was enough to cover operating expenses and debt service. Upside was the second floor vacancy.

Result

Within 24 months, the building was renovated and 100% leased. In 2002 the property was sold to a surgical group affiliated with Good Samaritan Hospital for $112.00 per square foot. Return on invested equity exceeded 21% annually.

Opportunity

Purchased a family owned office building in a desirable East-West corridor location for less than $50.00 per square foot. The property had maintained a long-term vacancy rate of over 60% and had considerable deferred maintenance. Rental rates were 30% below market levels.

Result

Within 29 months, 100% of common areas and 85% of the tenant space were renovated, 97% of the building was leased, and the net rental rates were increased over 83%. The property was sold in 2001 for $106.00 per square foot. The return on invested equity exceeded 23% annually.

Opportunity

Result