SELECTED 2010 TO FIRST HALF 2012 DEBT TRANSACTIONS IN SAN FRANCISCO

Pacific Shores 650 California

1,224,823 SF 489,373 SF
Under Contract June 2012

680 Folsom One Sansome IN A VOLATILE AND EVER CHANGING

521,598 SF 616,938 SF
May 2012 May 2012 MARKET WE BELIEVE:

221 Main 166 Geary

384,903 SF 49,447 SF Execution Matters Relationships Matter
April 2012 March 2012

Industry Knowledge Matters Creativity Matters

555 California 525 Market Street
1,807,613 SF 1,032,113 SF
September 2011 January 2011

“#1 Office Brokerage, Nationwide”

“#1 Office Brokerage, San Francisco”
“#1 Mall Brokerage, Nationwide”
“#1 Loan Sale Advisor Nationwide”
“#1 Debt Placement Advisor Nationwide”

Jeff Weber Jason Flynn Louis Stervinou

Senior Managing Director Managing Director Managing Director
415-228-2828 415-228-2910 415-228-2880
jweber@eastdilsecured.com jflynn@eastdilsecured.com lstervinou@eastdilsecured.com

Stephen Van Dusen Mark Penrod Robb Wehmueller

Managing Director Managing Director Director
415-228-2888 415-228-2831 415-228-2850
svandusen@eastdilsecured.com mpenrod@eastdilsecured.com rwehmueller@eastdilsecured.com

Rob Rubano
Director
415-228-2845
rrubano@eastdilsecured.com SA N F RA N C IS C O
 2010-2012 MACROECONOMIC TIMELINE SELECTED 2010 TO FIRST HALF 2012 OFFICE SALES

13,500 4.0% 50 Beale 799 Market

3.5% 663,441 SF 142,902 SF
12,500
3.0% Under Contract Under Contract
11,500 10-Year Treasuries 2.5% Office High Rise Mixed-Use
Dow Jones
2.0%
10,500
1.5%
9,500 1.0% 550 Terry Francois 650 California
289,361 SF 489,373 SF

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Under Contract June 2012
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CAPITAL Bond markets predict low rates for a long time — short term interest Markets settling into a new paradigm; slow to moderate Where will the mountains of cash and liquidity go in a 0-2% rate
600 California 901 Market Street
MARKETS TAKEAWAYS: rates will be kept near zero for at least the next three years. growth but extremely low fixed income returns. environment with limited opportunities for yield? 358,590 SF 210,976 SF
June 2012 June 2012
LEASING MARKET Office High Rise Mixed-Use
SNAPSHOT(1): Q2-2010: $33.43 PSF, FSG; 16.6% Vacancy Rate Q2-2011: $41.64 PSF, FSG; 11.8% Vacancy Rate Q2-2012: $49.79 PSF, FSG; 8.45% Vacancy Rate

$7.00 B $7.00 B
555 Mission Foundry Square I
557,015 SF 334,230 SF

$6.00B
Eastdil Secured San Francisco $6.00B
June 2012
Trophy Office
April 2012
Single Tenant

transacted $4.05B in office deals since 2010 166 Geary

49,447 SF
One Beach Street
97,614 SF
--all types and all sizes--
$5.00B $5.00B
March 2012 January 2012
Mixed Use Office Low Rise

$4.00B
representing 77% of the market. ES San Francisco
Debt Transactions
$4.00B
370 Third Street Kaufman Portfolio
409,783 SF 254,657 SF
December 2011 November 2011
$3.00B $3.00B
Office Lease Up Historic Office

ES San Francisco
Office Transactions 888 Brannan Street 409 & 499 Illinois
$2.00B $2.00B
400,254 SF 453,000 SF
May 2011 April 2011
Redevelopment Medical Center

$1.00B $1.00B
350 Rhode Island 301 Howard
135,509 SF 306,603 SF
Non-ES San Francisco
April 2011 March 2011
Technology Center UCC Foreclosure
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Market Center 333 Market Street
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770,044 SF 657,114
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2010 2011 2012 September 2010 June 2010
(1) Source: CAC Group
2012 TO FIRST HALF 2012 CUMULATIVE OFFICE TRANSACTION TIMELINE: SAN FRANCISCO Graph Data Source Office High Rise Single-Tenant