Figueora Central - Oceanwide/Tohigh Construction

Figueroa Central 1101 SOUTH FLOWER STREET PROPOSAL FOR RETAIL LEASING SERVICES PRESENTED TO:

汪杰

MS. SHARON ZHOU TOHIGH CONSTRUCTION INVESTMENT, LLC

coordinated.

A SEAMLESS, HIGHLY PROVEN LEASING TEAM WITH THE EXPERTISE TO DELIVER OPTIMUM RESULTS.

ConnECtED.

A PROVEN TRACK RECORD OF CONNECTING LEADING TENANTS WITH UNIQUE OPPORTUNITIES.

CommItted.

DELIVERING TOP RESULTS THROUGH HARD WORK AND A KEEN FOCUS ON OUR CUSTOMERS. PRESENTED BY: ADAM TISCHER Vice President License No. 01766213 Dir +1 213 532 3268 adam.tischer@colliers.com MARK TARCZYNSKI Executive Vice President License No. 01020868 Dir +1 213 532 3278 mark.tarczynski@colliers.com

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CONTENTS INTRODUCTION

4

COLLIERS INTERNATIONAL

6

OUR SERVICES

U.S. RETAIL SERVICES

8

SELECT TENANTS

TEAM OVERVIEW

9

PROJECT TEAM TEAM DIFFERENTIATORS TEAM AFFILIATIONS TEAM PROFILES SELECT RETAIL CLIENT LIST

PROJECT DESCRIPTION

18

FIGUEROA CENTRAL MASSING & PROGRAMMING

FOCUS4 MARKETING

18

THE WHY THE WHAT THE HOW THE WHEN

RETAIL MARKET OVERVIEW

36

INSIGHTS GLOBAL HIGHLIGHTS LOS ANGELES BASIN RETAIL HIGHLIGHTS DTLA HIGHLIGHTS

APPENDIX

40

APPENDIX 1 TARGET TENANTS APPENDIX 2 RETAIL MARKET REPORTS APPENDIX 3 LISTING AGREEMENT

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INTRODUCTION Thank you for inviting Colliers Retail Leasing to prepare a proposal for exclusive retail advisory and brokerage services for the retail development located at 1101 South Flowers Street in Downtown Los Angeles known as Figueroa Central. In this proposal we will share why Colliers International is the right partner for Tohigh Construction Investment, LLC, and how we will work together to turn your vision for Figueroa Central into a reality.

All members of Colliers’ Los Angeles Urban Redevelopment Group (LAURG), live in Downtown, work in Downtown, and play in Downtown. Our office is situated just two blocks from the future retail space at Figueroa Central and, because we focus exclusively on Downtown Los Angeles, we are extremely active in the Downtown market.

In fact, for more than two decades, LAURG has been responsible for bringing the largest number of high-profile retail tenants to Downtown Los Angeles. Some of the more notable retail tenants are Ralphs, The Palm, Morton’s, Bottega Louie, Rivera, Border Grill, California Pizza Kitchen, Plan Check, US Bank, First Republic Bank, Chase Bank and Water Grill.

Our local team is strengthened by Colliers’ Urban Retail Leasing Team around the world with a track record including international retailers such as Barneys New York, Chanel, Louis Vuitton, Hermès, Tiffany & Co. and CH Caroline Herrera. The pairing of both teams offers hands on local expertise and national reach.

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We believe the retail space at Figueroa Central will be extremely valuable to the large number of upscale, high-volume retailers currently combing the marketplace, seeking opportunities to capitalize on increased convention center bookings. With the pace of current and future developments in the immediate area at an all-time high, the timing is right for these retailers to enter the market.

Based on our group’s extensive urban retail experience and personal desire to make Downtown Los Angeles the best it can be, we are highly prepared and ready to engage top retailers in what we know is an incredible opportunity. Downtown Los Angeles has reestablished itself as a vibrant and dynamic community. The only thing missing is an upscale retail component.

Colliers Retail Leasing stands fully prepared to capture this missing piece of the Downtown Los Angeles puzzle. Our team is COORDINATED, CONNECTED and COMMITTED to delivering top results for Tohigh Construction Investment, LLC.

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COLLIERS INTERNATIONAL Colliers International is a leader in global real estate services, defined by a spirit of enterprise. Through a culture of service excellence and a shared sense of initiative, Colliers integrates the resources of real estate specialists worldwide to accelerate the success of its partners.

In addition to being highly skilled experts in their field, our people are passionate about what they do. And they know we are invested in their success just as much as we are in our clients’ success.

This is evident throughout our platform—from Colliers University, our proprietary education and professional development platform, to our client engagement strategy that encourages cross-functional service integration, to our culture of caring.

We connect through a shared set of values that shape a collaborative environment throughout our organization that is unsurpassed in the industry. That’s why we attract top recruits and have one of the highest retention rates in the industry.

Colliers International has also been recognized as one of the “best places to work” by top business organizations in many of our markets across the globe.

COLLIERS INTERNATIONAL AT A GLANCE*

2.1 in Annual Revenue $75 80,000 Transactions

$

billion

15,800

Professionals

| 63

| 1.46

billion Square Feet Managed

Countries

| 485

Offices

billion in over

5,800

Brokers

*Square footage includes office, industrial and retail property under management. Residential property is excluded from this total. All statistics are for 2013.

Founding member of the World Green Building Council

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Member of World Economic Forum

2013 ™

Named Top 100 service provider more times than any other real estate firm

The secondmost-recognized commercial real estate brand

Colliers Offices Updated March 2014

OUR SERVICES The foundation of our service is the strength and depth of our specialists. Our clients depend on our ability to draw on years of direct experience in the local market. Our professionals know their communities and the industry inside and out. Whether you are a local firm or a global organization, we provide creative solutions for all your real estate needs.

Colliers International offers a comprehensive portfolio of real estate services to occupiers, owners and investors on a local, regional, national and international basis.

In addition to these sectors, we provide our clients with a deep level of knowledge in specialized industries and product types, such as law, technical facilities and healthcare.

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U.S. RETAIL SERVICES Our leasing professionals know the value of placing the right tenants in the right location. Our relationships with local, regional, national and international retailers enable us to find the optimal retailer for the right space to maximize the performance of your retail assets.

Colliers Retail Services has almost 500 specialists across North America. Colliers has an enterprising and innovative spirit that encourages our professionals to think creatively and exceed your expectations. We pride ourselves on offering creative, often outside-the-box solutions, to meet your ever-changing needs.

We encourage and support collaborative relationships at every level of our business, from within the local office to national teaming. We’re able to do this through a unique partnership structure that combines the strength and stability of a global platform with local accountability and dexterity.

Our philosophy is truly unique in our industry and distinct from our competitors. Our touch is local, our reach global and, most importantly, when you hire us, you get all of us.

COLLIERS INTERNATIONAL | U.S. RETAIL SERVICES AT A GLANCE*

2.1 Retail Leasing Volume + $8.1 Retail Sales Volume +

$

billion

475+

Retail Professionals*

| 119

Markets

| 53.4M

billion

*U.S. and Canada

SELECT TENANTS

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Retail SF Under Management*

TEAM OVERVIEW PROJECT TEAM Adam Tischer >> >> >> >> >>

Anjee Solanki

Single point of contact DTLA market expert Exclusive representation to DTLA Large corporation client specialist Client touring

Mark Tarczynski

>>

U.S. retail leadership

>>

Cross-border collaboration

>>

Market insights and strategies

Jessica Yardy

>>

Investment market expert

>>

Leasing/transaction

>>

25 yrs of DTLA relationships

>>

New client acquisitions

>>

Production supervision

>>

Client touring

Trever Hopper

Mick Moody >>

Market outreach

>>

Marketing/transaction manager

>>

New business generation

>>

Client liaison to LAURG team

>>

Tenant relations and leasing transaction support

ADDITIONAL SUPPORT

>>

Packaging and design

Rob Galanti L&R Group of Companies

Chris Wong Research Analyst

Monica Chew Marketing Manager >>

Market trends

>>

Retail tenant support for Jessica Yardy

>>

LAURG property support

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TEAM DIFFERENTIATORS

Who Is Colliers Retail Leasing?

LAURG FOCUSES SOLELY ON RETAIL IN DOWNTOWN LOS ANGELES For nearly 25 years, Colliers’ Downtown Los Angeles Urban Retail Group (LAURG) has been actively involved in shaping the new Downtown.

As long-time residents of Downtown, we are heavily involved in the community, which allows us to understand far more than current or past market activity. We are able to identify and predict new trends that are shaping the community. In many cases we are even involved in creating these new trends.

This intimate involvement gives us greater insight into the market and a much deeper understanding of the people living in and moving to Downtown Los Angeles.

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TEAM AFFILIATIONS

PERSONAL RELATIONSHIPS WITH CIVIC AND COMMUNITY LEADERS Our long tenure in Downtown and active participation in the community have yielded many personal relationships with civic and community leaders and stakeholders involved in shaping Downtown. Not only do we explain to a retailer why they should locate in Downtown, we explain the process and we introduce them to the people involved in that process

Case In Point – Ralphs Supermarket In the case of Ralphs – the first supermarket to locate in Downtown Los Angeles in over 50 years – we engaged the Community Redevelopment Agency, City Councilmember Jan Perry and the developer involved. Through these interactions, we convinced the City to subsidize the redevelopment in order to bring Ralphs to the property, paving the way for residential conversion and a significantly higher value for our client.

IDENTIFICATION AND CAPITALIZATION ON EMERGING TRENDS Leveraging our intimate market knowledge and personal relationships, we are often able to identify DTLA’s “next big thing.” We then communicate this vision to a retailer and then guide them through the process of making the vision a reality.

We have a multidisciplinary team to ensure that no opportunity will be missed and no potential retailer will be overlooked. We also have a strong track record of thinking “outside the box” and breaking new ground in terms of property use and price level.

Case in Point – 1100 Wilshire Condo Conversion A high-rise office building to a pioneering developer. We recommended converting the tower into residential condominiums which became the highly acclaimed 1100 Wilshire residential skyscraper. This is a prime example of our ability to think outside the box, sell the vision and marshal government entities to complete the project.

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TEAM PROFILES

ADAM TISCHER | VICE PRESIDENT AREA OF EXPERTISE

EXPERIENCE

Adam K. Tischer joined Colliers in January 2011. He serves as

Retail Leasing, Brokerage: Apartments & Residential, Hotel &

vice president of the Los Angeles Redevelopment Group based

Leisure, Investment Properties, Land, Multifamily Investments

in Colliers’ DTLA office. He specializes in representing large corporate investment and developer clients in the Downtown Los Angeles market and has completed commercial real estate transactions totaling approximately $100 million.

PROFESSIONAL ACCOMPLISHMENTS >> Co-headed CB Richard Ellis’ Los Angeles Urban Redevelopment Group with the group’s founder, Mark Tarczynski. >> Represented large corporate investment clients and landlords, including Bank of America, The Trammell Crow Company, Forest City Enterprises and Good Samaritan Hospital Los Angeles. >> Awarded CB Richard Ellis’ prestigious "Rookie of the Year" award in 2008, given to the highest-producing broker within their first year of business.

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EDUCATION University of Southern California

MARK TARCZYNSKI | EXECUTIVE VICE PRESIDENT AREA OF EXPERTISE

EXPERIENCE

Mark Tarczynski joined Colliers in January 2011 as executive

International Investment Services/Capital Markets, Hotels,

vice president based in the Downtown Los Angeles office.

Land, Residential / Multifamily, Residential/Multifamily, Retail,

His extensive relationships with city and state government

Hotels Restaurants & Leisure

officials, along with his collective Downtown expertise, allow him to provide his clients with the most intimate and up-todate market knowledge and trends, thus unlocking the “hidden” value in his clients’ property holdings.

EDUCATION University of Indiana

PROFESSIONAL ACCOMPLISHMENTS Mark has sold more Downtown Los Angeles high-profile, redevelopment properties over the past fifteen years than all other competitors combined. With over an 80 percent market share for redevelopment property sales, Mark dominates the Downtown Los Angeles urban redevelopment market.

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AREA OF EXPERTISE Jessica L. Yardy joined Colliers International in 2014 as a retail specialist for the Los Angeles Redevelopment Group (LAURG). Her primary responsibilities are coordinating new project developments and representing the interests of the highprofile clients she assists in bringing into the thriving Downtown Los Angeles market.

JESSICA YARDY ASSOCIATE

BUSINESS BACKGROUND Jessica holds a B.A. in fashion design and marketing. Upon graduation, she successfully started, managed and sold a women’s clothing boutique. She has also launched a women’s active wear line, where she served as vice president. Prior to joining Colliers, she worked at RE/MAX Preferred as head officer, overseeing multiple offices and new business development.

With her educational background and decade-long experience in real estate, Jessica works hard and smart for her clients, whether representing the landlord or tenant in a transaction. She represents institutional owners, retailers, restaurateurs and boutique business owners.

AREA OF EXPERTISE Mick Moody joined Colliers in September of 2014. He serves as an associate for the Los Angeles Urban Redevelopment Group (LAURG) based in Downtown Los Angeles.

He heads business development for LAURG, with a primary responsibility of finding

MICK MOODY ASSOCIATE

new opportunities for the team.

ACCOMPLISHMENTS >> Generated a portfolio of over 275 retail and restaurant clients while at Livingsocial between 2012 and 2013. >> Headed business development unit for multiple tech startups with a focus on restaurants and retail businesses. >> Headed new business initiatives that included marketing collateral and sales pitches for each of his employers.

EXPERIENCE Retail Leasing, Investment Properties, Land, Multifamily Investments, Office.

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AREA OF EXPERTISE Trever Hopper joined Colliers in 2014 after 13 years in the entertainment industry.

He works exclusively with the Los Angeles Urban Redevelopment Group (LAURG).

Trever began his professional career in commercial real estate development, and has since specialized in project development, marketing and advertising.

TREVER HOPPER MARKETING COORDINATOR

ACCOMPLISHMENTS >> Produced award-winning feature films, as well as television pilots for network consideration >> Executive Producer for Commercial Productions – 4Horsemen Films >> CBRE clients included Home Depot, Wal-Mart, Target, Albertsons, Ross, Boarders, Macaroni Grill

EXPERIENCE Development, Marketing, Design, Advertising, Project Management

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Anjee brings over 20 years of focused retail real estate experience to her role as National Director, Retail Services USA. She provides strategic leadership to almost 500 specialized retail professionals operating across 83 markets to offer brokerage, capital markets, and management services. Her collaborative approach to creating innovative business solutions for institutional clients and retailers has helped develop strong, long-standing relationships with numerous clients including:

ANJEE SOLANKI NATIONAL DIRECTOR, RETAIL SERVICES | USA

>> Heitman

>> Clarion

>> Grosvenor

>> American Realty Advisors

>> PNC

>> TIAA-CREF

Anjee will build on the current retail portfolio, growing retail business across all service lines, driving greater collaboration between all markets, recruiting local talent, and elevating Colliers client service and market engagement. She is Vice Chair of the National Colliers Retail Steering Committee and works closely with each practice group leader, and Solomon Ets-Hokin, Chair of the National Retail Committee within Colliers.

She also collaborates with Dwight Hotchkiss, President, Brokerage Services | USA; Karen Whitt, U.S. President and COO | Real Estate Management Services, US; and Brian Ward, President | Capital Markets, Americas to continue to strengthen the Colliers presence. Anjee identifies key influencers and works with them to target clients, retailers, and investors, focusing on generating business leads for our service lines, while offering a more integrated approach that demonstrates our commitment to our clients.

ACCOMPLISHMENTS >> Awarded Top 50 Influential Women in Commercial Real Estate by The Forum in 2012. >> Oversaw Northern California and Nevada portfolio of 101 retail centers worth $2.74 billion. >> Received a letter of recognition from the City of Pleasant Hill for her supervision of the redevelopment project “Downtown Pleasant Hill”, a non-traditional 450,000-SF community center. >> Actively involved with Kukuiula Village, a 90,000-SF ground-up retail resort development on Kauai’s south shore, built as an amenity to a 1,000-acre master-planned community.

EDUCATION Bachelor of Arts, Finance, California State University, Fullerton

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SELECT RETAIL CLIENT LIST

Steven and Mitchell

>>

Eddit Bauer

Rosenthall

>>

Leslie Evers

>>

The Juice Shop

>>

Ogiko Corp

Ecco

>>

A Table In SF, LLC

>>

State Farm

>>

Nespresso

>>

Specialty's

>>

Yvonne Chen

Permaculture

>>

The Lotus Method

>>

Site for Sore Eyes

>>

LL Brown Jewlers

>>

Pat Areias Inc

>>

McDonalds

>>

Game

>>

Christian Louboutin

>>

Athleta

>>

Absinthe Group

>>

Ramla

>>

The Juice Shop

>>

Mina Group

>>

Bun Mee

>>

Blue Barn

>>

Paramo;

>>

Suvir Saran

>>

Veggie Grill

>>

Tender Greens;

>>

Paliotecca

>>

Pig and the Pickle

>>

Empower SF

>>

HSM Coffee

>>

Osha Thai

>>

Soul Cycle

>>

Itoya Topdrawer

>>

Specialty’s

>>

Saison

>>

>>

Craftsmen & Wolves

>>

>>

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PROJECT DESCRIPTION FIGUEROA CENTRAL A magnificent residential and guest destination in Downtown LA’s dynamic “Sports and Entertainment District.” The only one of its kind in the immediate trade area.

PROJECT HIGHLIGHTS AND AMENITIES

RETAIL SPECS

>> 1,448,101 SF

>> 166,583 SF of retail space available for prelease

>> Three high-rise condominium towers

>> Access from two major streets including Flower and

>> A five-star luxury hotel & spa branded by fashion legend, Roberto Cavalli >> A seven-story mixed-use podium >> 32,000 SF wraparound LED ribbon, the largest of its kind in the nation’s West Coast >> 990 residential parking spaces; 480 public parking spaces >> Walking distance from Pico Metro Blue & Expo Lines Station >> Across the street from LA Live including Staples Center, Nokia Theatre and Regal Cinemas

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Figueroa Street >> First and second level spaces designed for top tier retailers and restaurants. >> Premier shopping destination with luxury retailers and flagship stores. >> Contemporary and alluring store frontage. >> High quality retailers that will generate strong sales and rent.

MASSING & PROGRAMMING

Tower One Residence

Tower Two Residence

Tower Three Residence

塔楼二的住宅区域

塔楼三的住宅区域

塔楼一的住宅区域

Hotel Guest Rooms

Residence Amenities

酒店客房

住宅设施

Hotel Amenities / Retail

LED Display & Signages

酒店设施/商业

显示屏 & 广告标示

North Paseo & Plaza

South Paseo & Plaza

北公共通道 & 广场

南公共通道 & 广场

Retail Podium 商业裙房

Massing & Programs 体量 & 分布

Los Angeles CBD

Los Angeles Sports and Entertainment District (LASED)

Int

ers

tat e1

10

NOKIA THEATER FARMER’S FIELD FOOTBALL STADIUM (FUTURE)

July 18, 2014

L.A. LIVE

STAPLES CENTER SITE

South Park District

L.A.CONVENTION CENTER

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THE WHY Create a strategic and distinctive results-driven position based on marketplace needs, perceptions and competition.

THE WHAT Develop a strategic plan for creating awareness, distinction, interest and top results.

Focus4 is Colliers’ four-level marketing platform upon which all actions, tactics and deliverables are driven by an overarching

THE HOW

end user-focused strategy designed to create awareness,

Communicate the story to

distinction, interest and top-of-market results.

targeted users through multiple marketing channels, leveraging the relationships of the Colliers team and Colliers’ global platform.

THE WHEN Create the detailed timeline to ensure that key messages and deliverables are successfully communicated and reinforced.

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THE WHY

Create a strategic and distinctive results-driven position based on marketplace needs, perceptions and competition.

POSITIONING We will position Downtown Los Angeles and Figueroa Central as a “can’t miss” opportunity for retailers. It is the missing component to LA Live's entertainment hub.

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DOWNTOWN LOS ANGELS DEMOGRAPHIC REPORT PRIME DTLA ENTERTAINMENT DISTRICT The transformation of Downtown continuescontinues to flourishtowith As employment rates strengthen, theand conversion of historic The transformation of Downtown ourish with new, world-class residential retail develop-

The renovation of historic theatres andThe hotels is making Downtown both travel destination, and home new, ments. world-class residential and retail developments. buildings to creative offiace space will continue to abring a larger for many Angelenos.

As employment rates strengthen, the conversion of historic buildings to creative offi ce renovation of historic theatres and hotels is making Downtown variety of tenants Downtown, providing increased stability and space will continue to bring a larger variety of tenants Downtown, providing increased stability and diversity to both a travel destination, and a home for many Angelenos. diversity to the market. the market.

VISITORS | 10+ MILLION

Female

EMPLOYEES

Male

$90,580

Median Age

Median Income

500,000+

Female

Male

Vacationing to See Family

52,400

Female

Male

$98,020

$98,700

4+ Years of College

4+ Years of College

Median Income

Married | Partnered

RESIDENTS

Median Income

“ Get here fast so you can still experience the sheer exuberance of a great city in transition."

“ Thoroughfares that once looked deserted and menacing after hours are bustling with people going to new restaurants and other - New York Daily News, October 2014 destinations.”

- New York Times, October 2014

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“ Downtown Los Angeles…now feels like one of the coolest places on earth.”

-New York Daily News, October 2014

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THE WHAT

Develop a strategic plan for creating awareness, distinction, interest and top results.

OUR APPROACH

TARGETED USERS

After a detailed market analysis of the Downtown market and

Our team is Connected regionally with active and prospective

Figueroa Central opportunity, we believe the project will bring a

retailers wanting to expand to the Downtown Los Angeles area

missing component to the Downtown Los Angeles market and

as well as nationally and globally through our team’s extensive

a destination for the entire Los Angeles area.

networks and global platform. We will communicate the story of

The retail component will be a major hub for entertainment, capitalizing on extracting target audiences from the Staples Center, Nokia Theater, LA Live, Convention Center, residence and abundance of local hotels and corporations.

Through a Coordinated approach, we conceptualize bringing in prospective tenants that provide a synergistic relationship to existing venues and future Figueroa Central residents. Our initial target list would include Nike Town, an Apple concept store and a mix of high-end retailers. The third floor would be perfect for a restaurant with ample outdoor seating and live entertainment. This provides an additional amenity for the project and will assist in driving traffic. Other potential tenant uses may include high-end apothecary/cosmetics, salon/spa and mid-range retailers.

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Figueroa Central to thousands of potential users spanning from local upscale retailers to regional and international brands.

See list of sample Target Tenants in Appendix 1.

POTENTIAL LEASING PLAN B1

SBE NIGHT CLUB

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POTENTIAL LEASING PLAN LEVEL 1

Godiva

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POTENTIAL LEASING PLAN LEVEL 2

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RECOMMENDED PRICING Taking the previous plans in to account, we believe Tohigh Construction Investment could potentially achieve the following rental rate range below. We have proposed three tiers, as we believe securing high-end tenants is not 100% guaranteed.

Tier 1 Retail Space - between $6.00 and $9.00 per square foot, per month on a triple-net basis.

Tier 2 Retail Space - between $7.00 and $9.00 per square foot, per month on a triple-net basis.

Tier 3 Restaurant Space - at $6.00 per square foot, per month on a triplenet basis.

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PROFORMA STATEMENT LEVEL 1 Unit Number A B C D E F G H

Proposed Tenant Tumi John Varvatos Soul Cycle Lululemon Solstice Pressed Juicery Lush Cosmetics Godiva

SF 1835 4748 3229 3139 2743 1152 1340 1317

Proposed Rate Potential Total/Mo. $7.00 $12,845 $9.00 $42,732 $8.00 $25,832 $8.00 $25,112 $7.00 $19,201 $6.00 $6,912 $6.00 $8,040 $6.00 $7,902

Potential Total/Yr. $154,140 $512,784 $309,984 $301,344 $230,412 $82,944 $96,480 $94,824

I

Art of Shaving

1319

$6.00

$7,914

$94,968

J&K L

Nespresso Michael Kors

2176 5987

$7.00 $8.00

$15,232 $47,896

$182,784 $574,752

M

Sephora

4359

$8.00

$34,872

$418,464

N O P Q R S

AOC Louis Vuitton Apple Store Chanel NikeTown Hillstone Restaurant Units Total Tohigh Project Difference

7560 6153 10992 6840 9527 7123 81539 85352 3813

$9.00 $9.00 $9.00 $9.00 $9.00 $9.00

$68,040 $55,377 $98,928 $61,560 $85,743 $64,107

$816,480 $664,524 $1,187,136 $738,720 $1,028,916 $769,284

$688,245

$8,258,940

Proposed Rate Potential Total/Mo. $7.00 $17,059.00 $7.00 $13,020.00 $7.00 $5,894.00 $9.00 $24,273.00 $9.00 $36,909.00 $9.00 $42,417.00 $9.00 $62,343.00 $9.00 $78,075.00

Potential Total/Yr. $204,708.00 $156,240.00 $70,728.00 $291,276.00 $442,908.00 $509,004.00 $748,116.00 $936,900.00

PROFORMA STATEMENT LEVEL 2 & PKG Unit Number T U V W X Y Z AE

Proposed Tenant Blaze Pizza Pinkberry Yummy Cupcakes David Yurman Burberry Ralph Lauren Gucci Mastro's

SF 2437 1860 842 2697 4101 4713 6927 8675

AB

Nobu

16020

$9.00

$144,180.00

$1,730,160.00

AC AA

Burke Willams Lemonade

15608 6997

$9.00 $9.00

$140,472.00 $62,973.00

$1,685,664.00 $755,676.00

Total

70877

$627,615.00

$7,531,380.00

Tohigh Projected Difference

72534 1657

Proposed Tenant SBE Nightclub

SF 8697

Potential Total/Mo. $52,182.00

Potential Total/Yr. $626,184.00

Unit Number AA

Proposed Rate $6.00

Figueroa Central | 29

THE HOW

Communicate the story to targeted users through multiple marketing channels, leveraging the relationships of the Colliers team and Colliers’ global platform.

We are Committed to performing a systemized approach to analysis, marketing and communication to ensure you’ll never miss a prospect. We analyze factors such as tenant mix, building characteristics, your immediate and future leasing needs, and market competition.

We will Connect with prospective users through Colliers’ worldwide broker network, also leveraging the strength of Colliers' highly-specialized National Practice Groups.

In addition, we will strategically employ multiple marketing channels to distribute top-quality information designed for print, electronic and face-to-face communications including our “Colliers Connects” marketing system that broadcasts the opportunity to 5,800 Colliers’ brokers globally.

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NATIONAL PRACTICE GROUPS Colliers’ National Practice Groups are composed of best-in-class advisors who strategically focus their business within an industry sector. Thanks to the integrated and collaborative culture at Colliers, members of the following practice groups will serve as an extension of our marketing team, adding value through their niche expertise and buyer relationships:

URBAN RETAIL SERVICES

NET LEASED GROUP

AUTOMOTIVE RETAIL SERVICES

SUSTAINABILITY

TRANSIT-ORIENTED DEVELOPMENT

Figueroa Central | 31

THE WHEN

Create the detailed timeline to ensure that key messages and deliverables are successfully communicated and reinforced.

All aspects of the marketing program will be developed and distributed on a schedule designed to strategically raise and reinforce awareness, motivate strong interest and fully drive strong demand throughout the marketing process.

>> Execute listing agreement between Tohigh and Colliers >> Develop public relations and advertising strategies >> Designate approval process >> Annual budget requirements

>> Begin to contact brokers and potential tenants

>> Introduction of Figueroa Central to U.S. and International brokers >> eBlast - official announcement campaign

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>> Open House #1

>> Project walkthrough with

3Q2015

>> Design online advertising

select brokers

of project

>> Objectives and constraints

2Q2015

>> Project/property walkthrough

>> Continued marketing/adverting

>> Colliers to begin sending out

Tohigh and Colliers

4Q2015

Letters of Interest (LOIs)

1Q2016 >> Promotional campaigns for the 2016 >> Updated progress >> Project status report statement from Colliers

2Q2016

>> Continued marketing/advertising >> LOIs and tenant relations >> Launch a more aggressive

>> Begin to relay tenant build-outs and improvements

marketing/advertising campaign >> Tenants/brokers walk-though

to Tohigh and architect

3Q2016

>> Finalize all tenant leasing

1Q2017

3Q2017

1Q2018

>> Public relations – Conduct

>> Begin to prepare for

news pieces with local

property launch

sources

agreements >> Prepare for Grand Opening

2Q2018

3Q2018

>> Grand Opening

>> Open House (final)

>> Continued aggressive marketing/advertising >> Being to sign leasing agreements >> Open House #2

Figueroa Central | 33

34

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COLLIERS INTERNATIONAL

DESIGN-TO-DEVELOPMENT CONSULTING Over the last 25 years, we have completed nearly $1 billion USD of retail leases in Downtown Los Angeles. The Colliers upscale retail leasing division has an even more extensive track record. For this reason, we are intimately knowledgeable of the specific architectural requirements each retail tenant has for urban locations.

To enhance ability to lease, and to create a more valuable retail experience for both retail tenants as well as their consumers, our team will provide architectural and design consultation services, in coordination with the developer's architects, so as to achieve a world class retail shopping experience commensurate with the spectacular Figueroa Central location.

To enhance ability to lease, and to create a more valuable retail experience for both retail tenants as well as their consumers, our team will provide architectural and design consultation services, in coordination with the developer's architects, so as to achieve a world-class retail shopping experience commensurate with the spectacular Figueroa Central location.

Our team will provide recommendations as they relate to:

INFRASTRUCTURE REQUIREMENTS

DEVELOPMENT OF UNIFORM SIGN GUIDELINES

(i.e. restaurant cooking ventilation,grease traps, etc.)

OPTIMIZING TENANT VISIBILITY

OPTIMAL BAY DEPTHS

OPTIMIZATION OF TENANT ACCESSIBILITY (i.e. shopper path of travel)

All of the recommendations will be designed to maximize tenant sales, ultimately resulting in enhanced rental income stream to you. Our architectural and design consultation services shall be provided at no extra charge to leasing commissions paid.

Figueroa Central | 35

RETAIL MARKET OVERVIEW INSIGHTS There are many residents of Downtown Los Angeles who seek out high-end retail, yet they are forced to travel out of the immediate are to find such retailers. For example: Beverly Hills, Pasadena, Century City and Woodland Hills.

Currently, there are no luxury retailers in the DTLA market. Any high-end tenant has the potential for a very large market share.

The Staples Center, LA Live, Ritz Carlton and JW Marriott as well as the convention center all provide a constant flow of consumers that are prime for high-end retail shopping. Figueroa Central is ideally positioned to provide the retail shopping experience to both Downtown LA residents and their ±500,000 daytime working population, as well as the built-in demand from the adjacent traffic drivers.

Increasing condominium sales and a decreasing vacancy rate within the increasing number of apartment communities results in a growing built-in demand that will need retail services. Figueroa Central will provide the growing population with a much needed retail experience.

GLOBAL HIGHLIGHTS A RISING TIDE STIRS CAUTIOUSLY OPTIMISTIC MARKETS >> Led by the ongoing recovery in the U.S., the strong performance of high street markets and growing development in emerging markets, the global outlook for retail is promising. >> Luxury retailers in particular are thriving, even in regions such as Europe and Asia with weak growth in GDP and consumer spending. International brands are on the prowl for new markets in which to expand. >> New supply is robust in developing markets in Central and Eastern Europe, the Middle East and parts of Asia. In developed markets, construction is mostly limited to prime city centers and redevelopment of existing space. >> Optimism is tempered by threats to global economic growth and the specter of e-commerce. To combat competition from the internet, retailers are adopting new strategies to lure shoppers, such as using space as a showroom to create an “experiential shopping” environment.

Source: Colliers International 2014

36

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COLLIERS INTERNATIONAL

Retailers have their eyes on the 83-million “Millennials” born between 1982 and 2000.

This generation, which is larger than the Baby Boom, is expected to spend more than $200 billion annually starting in 2017, leaving retailers with the tall task of developing a whole new consumer model that had previously been based on appealing to baby boomers.

See Appendix 2 for Global Retail 2014 Highlights.

Figueroa Central | 37

LOS ANGELES BASIN RETAIL HIGHLIGHTS VACANCY DECREASES AND NET ABSORPTION INCREASES FROM PREVIOUS QUARTER Per the Chapman Economic Forecast, consumer sentiments surged in the third quarter of 2014 marking the highest level since 4Q 2004. Higher stock prices, rebounding home prices and lower gasoline prices are boosting consumers’ perception of current economic conditions. In California, the total number of payroll jobs increased by 44,200, a 2.1% annual increase recording in August of 2014.

As the job market continues to recover and consumers are able to increase their spending, retail sales are expected to improve throughout 2014.

See Appendix 2 for full Greater Los Angeles Basin Retail Market Report Q3 | 2014

HISTORICAL VACANCY VS RENTS Los Angeles Basin Retail Market Q3 2010 - Q3 2014

NET ABSORPTION BY MARKET Los Angeles Basin Retail Market Q3 2014

$2.35

8%

800,000 700,000 600,000 500,000 400,000 300,000

7%

$2.25 $2.15

6%

$2.05

5%

$1.95 4%

$1.85 $1.75

3Q10

3Q11

3Q12

Source: Colliers International 2014

38

1,000,000 900,000

|

COLLIERS INTERNATIONAL

3Q13

3Q14

3%­

SF

$ PSF PER MONTH(NNN)

$2.45

9%

% VACANT (TOTAL)

$2.55

(848,500)

(235,700)

200,000 100,000 0 (100,000) (200,000) (300,000)

(219,400) ORANGE COUNTY INLAND EMPIRE

LOS ANGELES COUNTY

DTLA HIGHLIGHTS DOWNTOWN CONTINUES TO SURPRISE Since 2008 over 600 new restaurants, bars, and retail stores have opened in Downtown LA. Downtown has now established itself as a world–renowned destination for great restaurants and bars including 10e, Kazu-Nori and Oyster Gourmet who all opened in the third quarter.

26 Retail Openings in Q3 2014 15 491,241SF

Retail Space Under Construction

| 845,750 SF*

Retail Space in the Pipeline

New Restaurants/Bar Openings in Q3 2014

*Includes Figueroa Central | Source: Downtown Los Angeles Business Improvement District (DCBID), 2014

Figueroa Central | 39

APPENDIX

40

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COLLIERS INTERNATIONAL

APPENDIX 1 TARGET TENANTS CATEGORY High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer

TENANT Alice & Olivia All Saints Armani Burberry Cartier Celine Chanel Chloé Christian Louboutin Coach Cole Haan Dash Diane von Furstenberg Dior Dolce & Gabbana Donna Karen Emilio Pucci Escada Fendi Givenchy Gucci Helmut Lang Herve Leger Hublot Hugo Boss Intermix Isabel Marant James Perse James Perse Jimmy Choo John Varvatos Kenneth Cole Louis Vuitton Madison Marc Jacobs Max Azria Michael Kors Philpp Plein Prada Rag and Bone

CATEGORY High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer High-end Retailer Mid-range Retailer Mid-range Retailer Mid-range Retailer Mid-range Retailer Mid-range Retailer Mid-range Retailer Mid-range Retailer Mid-range Retailer Mid-range Retailer Mid-range Retailer Mid-range Retailer Mid-range Retailer Mid-range Retailer Mid-range Retailer Mid-range Retailer Mid-range Retailer Mid-range Retailer Mid-range Retailer Mid-range Retailer Mid-range Retailer Mid-range Retailer Electronics Stationary Stationary Stationary

TENANT Ralph Lauren Salvatore Ferragamo Satine Ted Baker Theory Tiffany & Co Tory Burch Tom Ford Tumi Valentino Vera Wang Sandro Addison Athleta BCBG BEBE Club Monaco Everything But Water Free People French Connection G Star Kitson Lorna Jane Lululemon Michael Stars Nike Planet Blue Rebecca Minkoff Reformation Revolve Sam Edelman Vince Wildfox Apple Store Sugar Paper Soolip Papyrus

CATEGORY Stationary Stationary Denim Denim Denim Denim Denim Denim Denim Denim Denim Apothecary/Cosmetics Apothecary/Cosmetics Apothecary/Cosmetics Apothecary/Cosmetics Apothecary/Cosmetics Apothecary/Cosmetics Apothecary/Cosmetics Apothecary/Cosmetics Apothecary/Cosmetics Apothecary/Cosmetics Apothecary/Cosmetics Apothecary/Cosmetics Apothecary/Cosmetics Apothecary/Cosmetics Apothecary/Cosmetics Apothecary/Cosmetics Apothecary/Cosmetics Apothecary/Cosmetics Apothecary/Cosmetics Apothecary/Cosmetics Apothecary/Cosmetics Barbers Barbers Barbers Barbers Barbers Barbers Barbers Fitness

42

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TENANT Paige Kate's Paperie Flax Pen 7 For All Mankind Citizens of Humanity Civilianaire Diesel Hudson J Brand Nudie Jeans Co William Rast Aveda Beauty 360 Beauty Collection Benefit Beverly Hills Beauty Blue Mercury Blushington Detox Market Dyptique Evolue Fresh Kiehl's Larchmont Beauty Le Pink & Co. LUSH Makeup Forever Min NY Nars Sephora Space NK Ulta Cosmetics Belmont Art of Shaving Baxter Finley C.O. Bigelow Persons of Interest Sloane Square Barbers & Shoppe The Shave Anytime Fitness

COLLIERS INTERNATIONAL

CATEGORY Fitness Fitness Fitness Fitness Fitness Fitness Fitness Fitness Fitness Fitness Fitness Optical Optical Optical Optical Optical Optical Optical Optical Optical Optical Drug Stores Drug Stores Drug Stores Drug Stores Drug Stores Drug Stores Salons & Spas Salons & Spas Salons & Spas Salons & Spas Salons & Spas Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants

TENANT Aura Cycle/Yoga Bar Method Barry's Bootcamp Equinox Flywheel Hot 8 Yoga Moksha Yoga Pure Barre Soul Cycle Yoga Hop Yoga Works Cateye Spectacles Dan Deutsch Dita Legends Eyetailor L.A. Eyeworks Old Focals Scene SEE Solstice Warby Parker CVS Duane Reade Horton & Converse Mickey Fine Supercare Drugs Walgreen's Art of Shaving Blo Blow Dry Bar Chroma Color Bar Drybar Luxe Lab 800 Degrees Acme Bread Angelini Osteria AOC Bagatelle Bay Cities Bedford and Burns Bill Chait

CATEGORY Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants

TENANT 800 Degrees Acme Bread Angelini Osteria AOC Bagatelle Bay Cities Bedford and Burns Bill Chait Bistro 45 Blaze Pizza BOA Bowl Of Heaven Bread Bar Cafe Gratitude Cake House Church Key Cleo Crustacean Cube CUT David Berhnal David Myer Demitasse Drago Eveleigh Fig & Olive Georgetown Cupcakes Gjelina Hakkasan Hamasaku Hatfeilds Hillstone Honor Bar Il Fornaio Innovative Dining Group Johnny Cupcakes Kitchen 24 La Boulange La Brea Bakery La Scala

CATEGORY Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants Restaurants

TENANT Laduree Larchmont Bungalow Lette Macarons Little Fork M Cafe Manhattan Beach Post Masto's Steakhouse Matsuhisa Mercado's Morimoto Mozza Pizzeria Mr. Chow Mrs Winston's Nic's Night + Market Ocean Prime Pace Paiche Pettycash Phorage Picca Portillo's Rock Sugar Rubicon Deli Salt's Cure Sam Fox Scarpetta Smoke.oil.salt Son of a Gun Spago Star Resaurant Group Stix STK Sugar Fish Susina Bakery & Café Sweet Lady Jane Sycamore Kitchen Tartin Tender Greens Terroni

Figueroa Central | 43

APPENDIX 2 RETAIL MARKET REPORTS

44

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COLLIERS INTERNATIONAL

Q3 2014 | RETAIL

greater LOS ANGELES BASIN

market report

Vacancy Decreases and Net Absorption Increases From Previous Quarter MARKET indicators - Q3 2014

EXECUTIVE SUMMARY Retail market fundamentals continue to gradually improve as we move towards the end of 2014. During Q3

VACANCY

6.5%

2014, the Los Angeles basin retail market recorded positive net absorption of 864,800 SF, an increase from the

NET ABSORPTION

864,800 SF

experienced negative tenant movement. The vacancy rate for the region also decreased to 6.5%, a drop of 40

CONSTRUCTION

3,146,786 SF

RENTAL RATE

$2.11 PSF NNN

UNEMPLOYMENT

LA 8.1%

prior quarter of 732,000 SF. Los Angeles and Inland Empire recorded positive absorption while Orange County basis points from the previous quarter. Los Angeles witnessed the largest vacancy decrease in the region to 5.2% from 5.7% compared to one quarter ago. The weighted average asking rental rate increased to $2.11 per square foot (PSF), per month, triple net (NNN) from the previous quarter’s rate of $2.06 PSF NNN. Orange County continues to dominate the average asking rental rate in the region, recording at $2.68 PSF NNN.

OC 5.4% IE 8.7%

Los Angeles Basin Retail Market

HISTORICAL net absorption & Construction COMPLETIONS

Q3 2010 - Q3 2014

Los Angeles Basin Retail Market Q3 2010 - Q3 2014 ABSORPTION

RENTS

>> There was positive demand with 864,800 SF net absorption >> Construction completions decreased to 299,658 SF 1

$2.55

CONSTRUCTION COMPLETIONS

1,400,000

9%

$2.45

$ PSF PER MONTH (NNN)

>> Weighted average asking rental rate increased to $2.11 per square foot NNN

VACANCY

1,000,000

8%

$2.35 7%

$2.25 $2.15

6%

$2.05

5%

$1.95 4%

$1.85 $1.75

3% 3Q10

3Q11

3Q12

3Q13

3Q14

600,000 SF

>> The overall total vacancy rate for the region decreased to 6.5%

HISTORICAL VACANCY VS RENTS

% VACANT (TOTAL)

MARKET trends - Q3 2014

200,000 (200,000) (600,000) (1,000,000) 3Q10

3Q11

Colliers International continuously refines its database. As a result, data reflected in this report may not be consistent with data reported in previous quarters.

www.colliers.com/greaterlosangeles

3Q12

3Q13

3Q14

market Report | Q3 2014 | RETAIL | LOS ANGELES BASIN LOS ANGELEs COUNTY Over the third quarter of 2014, the Los Angeles County retail market experienced 848,500 SF of positive net absorption and an increase of $0.07 PSF NNN in average asking rents. The average asking rental rate was brought up by increasing average rates for super regional/regional malls, community/neighborhood centers and single tenant buildings. Currently, there is a total of 1,734,807 SF of retail under construction in Los Angeles County. The largest property currently being built is the Village At Westfield Topanga in Woodland Hills which is scheduled to be completed by the third quarter of next year. A lease transaction of note in the LA County market was Vallarta Food Enterprises, Inc leasing 30,000 SF at 7902-7940 Imperial Hwy in Downey.

GREATER LOS ANGELES DEMOGRAPHICS >> Population:

18,309,200 (2013 Estimate) 19,065,900 (2018 Projection) 4.0% (Growth 2013-2018)

>> Household income:

$80,900 (Average) $57,500 (Median)

LOS ANGELES COUNTY >> Job growtH:

2.7% (past 12 months)

>> Unemployment rate:

8.1% (as of August 2014)

The Inland Empire saw positive change during the 3rd quarter. Overall positive net absorption recorded 235,700 square feet for the quarter.

The total vacancy rate decreased slightly by 30 bases points to 9.7%.

Average asking rents

remained flat at $1.50 PSF NNN. Super regional/ regional malls had the highest average asking rental rate of $2.44 PSF NNN, while strip centers had the lowest at $1.17 PSF NNN.

There is

Orange County was the only market in the Los Angeles basin to experience negative net absorption recording at -603,600 for 3Q. Total vacancy slightly increased to 5.4% from 5.3%.

There was slight movement of asking rents in all but one category, the overall average asking rental rate increased in the third quarter of 2014 to $2.68 PSF NNN. There is approximately 1,047,955 SF of retail space under construction

Empire. The largest property is a 185,000 SF

inventory under construction in the Inland Walmart Supercenter being built in Perris. Also, in the third quarter of 2014 leasing activity remained positive as The Fresh Market leased 24,365 SF at 73400-73411 El Paseo, in Palm Desert.

vacancy by property type Los Angeles Basin Retail Market Q3 2014 11%

12%

10%

11%

8%

9%

7%

8%

6%

5.2%

% VACANT

7%

5.4%

5%

8.3%

9%

9.7%

10%

6.7%

8.9%

7.0%

5.4%

5% 4%

3.3%

3% 2% 1%

4%

LOS ANGELES COUNTY

| Colliers International

ORANGE COUNTY

INLAND EMPIRE

COMMUNITY/ NEIGHBORHOOD CENTERS

0%

STRIP CENTERS

1%

POWER CENTERS

2%

LIFESTYLE/THEME FESTIVAL CENTERS

3%

SUPER REGIONAL/ REGIONAL MALLS

0% SINGLE TENANT BLDGS.

% VACANT

INLAND EMPIRE

currently 364,024 square feet of new retail

Los Angeles Basin Retail Market Q3 2014

p. 2

any significant tenants.

Orange County

VACANCY by market

6%

in Orange County. The largest property currently being built is The Source lifestyle center in Buena Park, which includes 425,000 square feet of retail space. The project is expected to be completed by the end of 2015. However, this property has had initial challenges in securing

market Report | Q3 2014 | RETAIL | LOS ANGELES BASIN

RETAIL OVERVIEW

Los Angeles Basin Retail Market Q3 2014

EXISTING PROPERTIES

VACANCY

ABSORPTION

CONSTRUCTION

RENTS

Total Inventory SF

Total Vacancy

Total Vacancy Prior Qtr

Net Absorption Current Qtr SF

Net Absorption YTD SF

Completions Current Qtr SF

Under Construction SF

Weighted Avg Asking Lease Rates

SUPER REGIONAL/REGIONAL MALLS

24,045,906

5.1%

4.8%

(62,900)

(67,200)

0

0

$4.38

Market/ Property Type

LOS ANGELES COUNTY POWER CENTERS

14,205,915

5.6%

5.4%

(23,100)

45,700

10,500

0

$3.18

LIFESTYLE/THEME-FESTIVAL CENTERS

4,779,744

3.4%

3.7%

146,800

271,600

137,920

1,353,584

$3.20

COMMUNITY/NEIGHBORHOOD CENTERS

78,282,649

6.9%

7.2%

363,200

533,800

106,817

338,676

$2.39

STRIP CENTERS

30,761,837

7.5%

7.8%

80,700

304,100

0

25,920

$1.65

SINGLE TENANT BLDGS.

77,341,424

2.8%

3.2%

343,800

562,800

0

16,627

$2.26

Subtotal

229,417,475

5.2%

5.7%

848,500

1,650,800

255,237

1,734,807

$2.49

SUPER REGIONAL/REGIONAL MALLS

11,816,790

5.4%

2.6%

(335,200)

(332,500)

0

44,000

$4.94

POWER CENTERS

7,683,672

4.9%

5.3%

25,500

(111,100)

0

0

$3.27

LIFESTYLE/THEME-FESTIVAL CENTERS

3,086,288

10.6%

11.6%

29,600

(25,000)

0

952,870

$3.58

COMMUNITY/NEIGHBORHOOD CENTERS

45,117,544

6.4%

6.8%

176,700

28,700

0

18,085

$2.36

ORANGE COUNTY

STRIP CENTERS

10,490,008

6.5%

6.4%

(2,300)

(59,200)

0

0

$1.57

SINGLE TENANT BLDGS.

25,174,423

2.7%

2.2%

(113,700)

(104,500)

0

33,000

$2.25

Subtotal

103,368,725

5.4%

5.3%

(219,400)

(603,600)

0

1,047,955

$2.68

$2.44

INLAND EMPIRE SUPER REGIONAL/REGIONAL MALLS

10,748,601

6.1%

7.8%

181,400

34,800

0

0

POWER CENTERS

10,458,353

10.3%

9.3%

(107,900)

(129,300)

0

0

$1.84

LIFESTYLE/THEME-FESTIVAL CENTERS

2,330,642

8.4%

7.8%

(14,700)

5,000

0

0

$2.10

COMMUNITY/NEIGHBORHOOD CENTERS

52,745,306

13.9%

14.2%

171,500

183,300

30,000

364,024

$1.47

STRIP CENTERS

12,363,167

11.7%

11.9%

39,200

237,600

14,421

0

$1.17

SINGLE TENANT BLDGS.

42,985,364

4.7%

4.6%

(33,800)

52,300

0

0

$1.28

Subtotal

131,631,433

9.7%

10.0%

235,700

383,700

44,421

364,024

$1.50

LA BASIN TOTAL SUPER REGIONAL/REGIONAL MALLS

46,611,297

5.4%

4.7%

(216,700)

(68,500)

0

44,000

$4.02

POWER CENTERS

32,347,940

7.0%

7.0%

(105,500)

53,200

10,500

0

$2.55

LIFESTYLE/THEME-FESTIVAL CENTERS

10,196,674

6.7%

7.3%

161,700

153,400

137,920

2,306,454

$3.07

COMMUNITY/NEIGHBORHOOD CENTERS

176,145,499

8.9%

9.4%

711,400

607,000

136,817

720,785

$1.95

STRIP CENTERS

53,615,012

8.3%

8.8%

117,600

442,300

14,421

25,920

$1.48

SINGLE TENANT BLDGS.

145,501,211

3.3%

3.7%

196,300

441,200

0

49,627

$1.85

TOTAL

464,417,633

6.5%

6.9%

864,800

740,900

299,658

3,146,786

$2.11

Colliers International |

p. 3

market Report | Q3 2014 | RETAIL | LOS ANGELES BASIN NET ABSORPTION BY MARKET

NET ABSORPTION BY PROPERTY TYPE

Los Angeles Basin Retail Market Q3 2014

Los Angeles Basin Retail Market Q3 2014

800,000

1,000,000 >> Five out of the six property types

848,500

900,000positive net absoprtion recorded

711,400

600,000

800,000 400,000

700,000 600,000

SF

continue to try to keep up with 400,000 shopper expectations 300,000

SF

>> Shopping center landlords 500,000

200,000

161,700 73,600

0

235,700

-200,000

200,000

(105,500) (216,700)

LOS ANGELES COUNTY

COMMUNITY/ NEIGHBORHOOD CENTERS

INLAND EMPIRE

POWER CENTERS

(219,400) ORANGE COUNTY

SUPER REGIONAL/ REGIONAL MALLS

(100,000) (200,000)

LIFESTYLE/THEME FESTIVAL CENTERS

SINGLE TENANT BLDGS.

0

STRIP CENTERS

-400,000

100,000

(300,000)

196,300

OUTLOOK

market description

Per the Chapman Economic Forecast, consumer sentiments surged in the

The Greater Los Angeles retail market is comprised of 458.5 million square

third quarter of 2014 marking the highest level since 4Q 2004. Higher

feet of multi-tenant shopping centers and single tenant properties.

stock prices, rebounding home prices and lower gasoline prices are

Community/neighborhood centers represent the most amount of space

boosting consumers’ perception of current economic conditions. In

(39%) among the different property types.

California, the total number of payroll jobs increased by 44,200, a 2.1%

affordable retailers and high-end stores due to a population that demands

annual increase recording in August of 2014. As the job market continues

a wide variety of stores. High median income households and strong

to recover and consumers are able to increase their spending, retail sales

population growth contribute to make this region attractive to retailers.

The market attracts both

are expected to improve throughout 2014.

WEIGHTED AVERAGE ASKING LEASE RATES BY MARKET Los Angeles Basin Retail Market Q3 2014

WEIGHTED AVERAGE ASKING LEASE RATES BY PROPERTY TYPE Los Angeles Basin Retail Market Q3 2014

$4.50

$4.02

$3.00 $4.00

$2.68 $2.49

$2.25 $2.00 $1.75

$1.50

$2.55

$2.50

$1.85

$2.00 $1.50

$1.48

| Colliers International

POWER CENTERS

SUPER REGIONAL/ REGIONAL MALLS

ORANGE COUNTY

LIFESTYLE/THEME FESTIVAL CENTERS

LOS ANGELES COUNTY

COMMUNITY/ NEIGHBORHOOD CENTERS

$1.00 INLAND EMPIRE

$1.95

$1.00

$1.25

p. 4

$3.07

$3.00

STRIP CENTERS

$1.50

$3.50

SINGLE TENANT BLDGS.

$2.50

$ PSF PER MONTH (NNN)

$ PSF PER MONTH (NNN)

$2.75

market Report | Q3 2014 | RETAIL | LOS ANGELES BASIN

DEFINITIONS OF KEY TERMS USED IN THIS REPORT Anchor Tenant: A large national or regional retailer that serves as a primary draw for a shopping center.

Capitalization (Cap) Rate: A calculation that shows the relationship between one year’s net operating income and the current market value of a property. Is calculated by dividing the annual net operating income by the sales price.

Community Center: Typically has a total square footage between 100,000 - 350,000 square feet. Often will have 2-3 large anchored tenants, which include supermarkets and drugstores. Other tenants may include retailers that sell items such as apparel, home improvement/furnishings, toys, electronics, or sporting goods.

Direct Vacancy: Space in existing buildings that is vacant and immediately available during the quarter for direct lease, plus space that is vacant but not available for direct lease or sublease (for example, that is being held for a future commitment).

Lifestyle Center: An upscale specialty store shopping center that has a total square footage between 150,000 500,000 square feet. The center usually has an outdoor setting with dining and entetainment.

Neighborhood Center: Focuses on retailers that sell convenience items and personal services. The center will often have a supermarket as an anchor tenant. The size range is 30,000 - 300,000 square feet.

Theme/Festival Center: Predominantly has a unifying theme based on tenants and architectural design. Focuses on restaurants and entertainment while appealing to tourists. The size range is 80,000 - 250,000 square feet.

Single Tenant Free Standing Building: Retail building occupied by only one tenant.

Space Added (Net): Total square feet added during the quarter via construction completions, including renovated space returned to market, less total square feet taken off-market due to demolitions or conversions.

Strip Center: An attached row of stores or service outlets while usually being less than 30,000 square feet.

Under Construction: Includes buildings that are in some phase of construction, beginning with foundation work and ending with the issuance of a Certificate of Occupancy.

United States: 140 Canada: 42 Latin America: 20 Asia Pacific: 195 EMEA: 85 • $2.1 billion in annual revenue • 1.46 billion square feet under

management

• Over 15,800 professionals

united states: Greater Los Angeles Headquarters Office License No. 01908231 865 S. Figueroa Street, Suite 3500 Los Angeles, CA 90017 tel +1 213 627 1214 FAX +1 213 327 3200 PUPIL, MARTIN President, West Region

HOLLINGSWORTH, JOHN Executive Managing Director

Weighted Average Asking Rental Rates: Weighted by the total square feet available for direct lease. Data is based on triple net rents, which excludes costs associated with taxes, insurance, maintenance, janitorial service and utilities. Reported on a monthly, per square foot basis.

Technical Note:

MUMPER, HANS Executive Managing Director

RESEARCH ANALYSTS MATTESON, CAITLIN Research Manager Research Services

GALVIN, THOMAS R. Regional Analyst Research Services

Colliers International is continuously refining its database. The

WONG, CHRIS

data shown in the historical tables and graphics in this report have

Regional Analyst Research Services

been adjusted to take into account these changes in the database.

Power Center: The center often consists of several freestanding anchors with a minimum number of small tenants. The size of the property is typically between 250,000 - 600,000 square feet. The anchor tenants are usually discount department stores, off-price stores, and warehouse clubs.

This report has been prepared by Colliers International for general

Regional/SuperRegional Mall: Provides shopping goods, general merchandise, apparel, and furniture. Often consists of multiple department stores. Regional Malls usually are between 400,000 - 800,000 square feet, and Super Regional Malls typically are greater than 800,000 square feet.

conditions and warranties arising out of this document and

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information only. Information contained herein has been obtained from sources deemed reliable and no representation is made as to the accuracy thereof. Colliers International does not guarantee, warrant or represent that the information contained in this document is correct. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, excludes all liability for loss and damages arising there from.

This report and other research materials may be found on our website at www.colliers.com/greaterlosangeles.

Accelerating success.

Global | Retail | 2014 HIGHLIGHTS

A Rising Tide Stirs Cautiously Optimistic Markets > L ed by the ongoing recovery in the U.S., the strong

performance of high street markets and growing development in emerging markets, the global outlook for retail is promising.

> L uxury retailers in particular are thriving, even in regions such as Europe and Asia with weak growth in GDP and consumer spending. International brands are on the prowl for new markets in which to expand.

> N ew supply is robust in developing markets in Central

and Eastern Europe, the Middle East and parts of Asia. In developed markets, construction is mostly limited to prime city centers and redevelopment of existing space.

> O ptimism is tempered by threats to global economic growth

and the specter of e-commerce. To combat competition from the internet, retailers are adopting new strategies to lure shoppers, such as using space as a showroom to create an “experiential shopping” environment.

Top Ten Global Retail Rents USD/SqFt/Year $3,550

New York, Fifth Avenue

$2,073

Hong Kong, Queen's Road Central, Central

$2,011

Hong Kong, Canton Road, Tsim Sha Tsui

$1,643

New York, Madison Avenue

$1,543

Paris, Champs Elysees

$1,340

London, Old Bond Street

$1,103

Hong Kong, Causeway Bay

$998

Zurich, Bahnhofstrasse

$890

Milan, Via Monte Napoleone

$786

Moscow, Stoleshnikov Lane

All Rents in USD