SANTA MONICA COLLECTION

Acquisition: October 1997, $11,970,557
Disposition: Various, $28,510,000
Multiple of Capital Invested: 4.09
IRR: 22.67%

Due to landmark changes in state and local rent control laws, in effect in 1999, apartment owners in Santa Monica were entitled to raise rents of voluntarily vacated apartment units to current market rental rates. In anticipation of the change in law, the Company, in 1997, began acquiring apartment projects in Santa Monica.

Santa Monica Collection, consisting of three separate apartment projects totaling 122 rental units, was acquired in October 1997 from one seller in a single transaction. Through aggressive management we increased annual rental income by 64% by June, 2003. Santa Monica Collection performed exceptionally, returning investors entire capital by March, 2003.

The value of each of the apartment projects in Santa Monica Collection was enhanced to maximum potential through effective management and strategic capital improvements. Condominium entitlements were perfected for the 1251 14th Street project, thus enabling the Company to achieve a premium price upon sale. The projects were sold separately in 2003, 2004 and 2011. Santa Monica Collection returned a multiple of capital of 4.09 and achieved an IRR of 22.67%.

Acquisition:  April 2000,  $31,000,000
Disposition:  August 2006,  $110,200,000
Multiple of Capital Invested:  7.90
IRR:  34.38%

In 1999 the Company acquired a 140,000 square foot multi-tenant office building at 10000 Santa Monica Boulevard in Century City, located at the gateway to the exclusive Beverly Hills Triangle. After a series of lease buyouts, the Company entered into a long-term lease with Fox Sports as the sole building tenant at the rental rate of $500,000 per month. The building served as Fox Sports headquarters until 2005 when it was vacated to allow the Company to proceed with its development of a luxury high-rise residential project.

Through proactive management and favorable lease terms, during the first four years of operations, the building generated revenue that was equal to 3 times the original capital investment.

The Company then commissioned architect Richard Meier to create an architectural design for a 352 unit high-rise residential project. The $400 million project was designed to achieve the Leadership in Energy and Environmental Design (LEED) Silver certification.

Utilizing its superior knowledge of the entitlements process, access to various governmental and ministerial agencies and its track record of bringing high profile projects to fruition, the company obtained the entitlements for the 352 unit residential project.

In August of 2006, prior to development, the Company sold the project for $110.2 million. The sale represented a record setting price for land in Los Angeles, at just under $1,100 per square foot. The project returned a multiple of 7.9 times initial capital invested.

PW/C & FIRESIDE

Acquisition:  October 1998,  $9,985,000
Disposition:  March 2003,  $16,480,000
Multiple of Capital Invested:  2.16
IRR:  24.70%

The Company was the largest developer and largest owner of retail properties in the exclusive Montana Avenue Shopping District in Santa Monica.

In 1986 retail rents in the district averaged $1 per square foot per month. Through the Company’s value add, repositioning, and development activities, retail rents in the district climbed to $6 per square foot per month in 2003, record setting prices. Today, the Company’s award winning Montana Avenue developments command some of the highest retail property rents in West Los Angeles.

Acquisition:  April 1997,  $36,011,920
Disposition:  March 2002,  $60,210,000
Multiple of Capital Invested:  2.06
IRR:  45.26%

The Company became the majority owner of retail properties in Westwood Village in 1997.

The Company’s vision for Westwood Village centered around a proposed Village Revitalization Plan designed by Richard Meier. The Village Revitalization Plan sought to fuse the historic features of Westwood Village with fresh, new, and exciting architectural elements. The proposed Village Revitalization Plan created excitement from surrounding business owners, residents, and city officials. The Company’s commissioning of architect Richard Meier also brought national attention and prominence to Westwood Village. The Village Revitalization Plan brought a significant infusion of capital into Westwood Village and is largely credited with initiating the on-going turnaround of Westwood Village.