a unique opportunity in a dynamic location

A UNIQUE OPPORTUNIT YIN A DYNAMIC LOCATION

Exceptional 628,000-square-foot mixed-use development advantageously located in the heart of Desert Ridge–Arizona’s largest master-planned community

• Strategically located within minutes of top resort hotels, downtown Phoenix, downtown Scottsdale and the city’s most affluent residential areas

• The trade area includes nearly 541,801 households with an average household income of $86,886

• Situated in the prosperous Northeast Valley of Phoenix Loop 101, more than 172,000 cars pass the site daily

• High Street is positioned at the intersection of two major freeways, Phoenix Loop 101 and State Route 51, offering excellent visibility and accessibility

• Arizona’s largest resort, the 950-room JW Marriott Desert Ridge Resort & Spa, is within walking distance

• World-class architecture incorporates the finest aspects of city living

• Popular Restaurant and Bar Collection features esteemed local and national restaurateurs’ finest dining concepts

• Annual events attract thousands of local and out-of-state visitors

• Located in the sixth-largest metropolitan area in the nation, with a population of over 1.4 million, and growing

• Phoenix is one of the fastest growing cities in the US, with an expected population growth of 2.7% during 2013

A PREMIER RESTAURANT AND RETAIL DISTRICTEXECUTIVE SUMMARY

LIVE WORK PL AY

Dynamic mix of dining, entertainment, retail, services, Class-A office space and luxury apartment homes make High Street an exceptional place to live, work and play.

DEMOGRAPHICALLY DESIRABLESO EASY TO GET HERE. SO HARD TO LEAVE.

Access• Easily accessed and exceptionally visible, more than 172,000 cars pass the site

daily and more than 2.4 million people live within 30 minutes or less• Sited at the intersection of two major freeways• The freeway interchange draws visitors from all four directions more quickly

and conveniently than any other site in the Northeast Valley

Desert riDge• Encompassing 5,700 acres, the community of Desert Ridge is one of the

fastest-growing and most demographically desirable communities in the country

• Within Desert Ridge, there are 5,800 single family luxury homes and condominiums with an additional 1,400 more under construction

• There is high-density, luxury residential directly across the street• Desert Ridge Marketplace, a 1.2 million square-foot power and entertainment

center, is adjacent to High Street and draws more than 25 million visitors annually

High Street is centrally located in the affluent Northeast Valley of Phoenix at Loop 101 and

56th Street, in the rapidly growing master-planned community of Desert Ridge. The

demographics are compelling for those looking to attract discerning, savvy clientele with

expendable income.

• Desert Ridge Marketplace focuses on big box and teen/family retail, leaving High Street well positioned to attract customers looking for upscale dining, entertainment and retail options

• The adjacent 950-room JW Marriott Desert Ridge Resort & Spa hosts some 1,000,000+ visitors a year, and is the largest hotel in Arizona, with more than 110,000 indoor/130,000 outdoor square feet of convention space, 36 holes of championship golf, 8 tennis courts, and a 28,000 square-foot spa

• The JW Marriott Canyon Villas, a mere one mile from the property, has 252 time-share units

• The renowned Mayo Clinic operates a 268-bed hospital and medical center complex one mile south of the property

DemogrAphics• Immediate trade area includes nearly 2.4 million people with an average

household income of approximately $89,565• Within five miles of the property, average household income is $87,704, which

is well above the Phoenix MSA average of $70,179

High Street offers the opportunity to create an interactive lifestyle with an existing mix of retail, restaurant, residential, office, entertainment and event uses.

Planned to incorporate and encourage the finest aspects of city living: excitement, authenticity, public and private spaces, varied architectural styles and a sense of spontaneity, High Street is a 24/7 environment, appealing to each of the most important customer segments.

retAil, restAurAnts & nightlifeOne of its most compelling components, High Street offers four city blocks of stunning restaurant, entertainment and retail suites.

Join a handpicked selection of esteemed restaurateurs’ – featuring culinary superstars such as Cameron Mitchell’s Ocean Prime, Valley favorites La Bocca Wine Bar & Urban Kitchen and Scottsdale’s own Kona Grill, as well as the state’s premier nightclubs Blue Martini and Modern Margarita – all of which offer the finest cuisine presented by Arizona’s hottest chefs.

Enjoy nonstop comedy, hilarity and delicious drinks & dines at High Street’s crown gem for entertainment, Rick Bronson’s House of Comedy. The gorgeous venue allows audiences to wine and dine while enjoying the absolute best in live, stand-up comedy.

Overall, the 175,000 square feet of ground-level space offers flexible floor plans, stunning finishes and charming tree-lined street access for current and future dining, entertainment and shopping favorites.

A SOPHISTICATED URBAN ENVIRONMENT TO LIVE, WORK AND PL AY

A SOPHISTICATED URBAN ENVIRONMENT TO LIVE, WORK AND PL AY

resiDentiAlThe Residences on High Street are contemporary rentals of unmatched style and modern convenience. Each home is elegantly crafted with generous living spaces full of natural light, rich customizable finishes and timeless urban design. The 99 stylish, one-, two- and three-bedroom units are fully leased and range from approximately 750 square feet to more than 1,850 square feet. Each unit has access to a private parking garage, exclusive saltwater pool and modern entertainment area.

officeThe Offices on High Street are comprised of 330,000 square feet of Class A office space and feature Fortune 500, tech, financial services, insurance and law tenants ranging from 10,000 to 60,000 square feet.

Situated in seven three- and four-story buildings above High Street’s modern streetscape, The Offices provide workers, clients and visitors a sophisticated neighborhood experience. The Offices on High Street are home to a variety of large and small companies including Cigna, Inventure Foods Inc., GlobalTranz Enterprises, Alliance Home Loans, Sprouts Farmer’s Market Corporate Offices and Navitus Health Solutions.

Executives, employees and clients occupying the Class A professional office buildings benefit from the convenience of dining and entertainment amenities inherent to the property.

scottsDAle AirpArk & AirportJust minutes from High Street, the Scottsdale Airpark is a prominent employment hub for Arizona and home to approximately 50,000 workers at 2,580 companies ranging from office and light industrial to hotel and retail. Scottsdale Airpark, which includes office, industrial, retail, hotel and aircraft hangers, currently employs 50,000 and is expected to grow by 30,000 additional workers over the next 20 years.

Located within the Airpark, Scottsdale Airport is one of the nation’s premier and busiest single-runway, general aviation facilities in the United States, recording approximately 170,000 takeoffs and landings each year. Just recently, the Airport expanded its international service which will allow visitors and business travelers from all over the world to fly directly to Scottsdale.

mAjor sports frAnchisesPhoenix is a sports-lovers paradise with every major sport represented in both professional and amateur teams, with games or training accessible year-round. • MLB Arizona Diamondbacks – Chase Field (Downtown Phoenix) • NBA Phoenix Suns – US Airways Center (Downtown Phoenix) • NFL Arizona Cardinals – University of Phoenix Stadium (Glendale) • NHL Phoenix Coyotes – Jobing.com Arena (Glendale)

mAjor employers North Phoenix is a hub for employment. Within five miles of the property there are more than 96,000 daytime employees.

Nearby major employers include: • Scottsdale Airpark – 50,000 workers at 2,580 companies • Mayo Clinic – 5,200 employees (est.) • American Express – 3,000 (est.) • Desert Ridge Marketplace – 2,500 employees (est.) • JW Marriott Desert Ridge – 1,200 employees • Henkel North America HQ – 900 employees earning $90,000 per year • Go Daddy Group Inc. – 2,500 employees • Fairmont Princess Hotel – 900 employees • Penske Luxury Auto Dealerships – 650 employees • Allied Waste – 550 employees • Scottsdale Healthcare – 540 employees

ArizonA stAte universityWith 72,254 students, Arizona State University (ASU) is the largest public university in the United States. The research university has four campuses, more than 300 majors and awarded more than 17,000 bachelors, masters, doctoral and law degrees in 2011. Additionally, ASU’s popular football program regularly draws a crowd of 72,000+ to Sun Devil Stadium in Downtown Tempe. The Arizona State Sun Devils’ football program competes in NCAA Division I FBS as a member of the Pacific-12 Conference.

THE NEIGHBORHOODADDITIONAL AREA INFORMATION

significAnt locAl eventsJanuary is high season in Phoenix, but remarkable weather and a plethora of world-class venues ensure a fall calendar of premier events and festivals 365 days a year. Here are just some of the events and attractions throughout the year.

Held at the JW Marriott Desert Ridge:• LPGA• Muhammad Ali’s ‘Celebrity Fight Night’

Fundraiser

Held within five miles of High Street:• Phoenix Open • Barrett-Jackson Collector Car Auction• Russo and Steele Collector Automobile Auction • Cactus League MLB Spring Training Held within the High Street trade area:• Fiesta Bowl • P.F. Chang’s Rock n’ Roll Marathon• Pat’s Run

• Insight.com Bowl• BCS Championship Game (rotational) • Scottsdale Culinary Festival• Arizona Renaissance Festival• Aloha Festival• Ostrich Festival• NASCAR - Phoenix International Raceway (2x

annually in spring and fall)• Scottsdale Arabian Horse Show• 2015 Super Bowl

musicAl instrument museumThe 192,000 square foot, $250 million, Musical Instrument Museum (MIM) opened in 2010. The MIM houses a global collection of more than 14,000 instruments and artifacts, offering state-of-the-art audiovisual technology to bring them to life. The museum is also home to a 299-seat music theater where world-class concerts and global artists hail from every corner of the world throughout the year.



current AreA Development • The Toscana Vacation Resort Condos, just across the street, with a total

of 466 luxury residential units. Toscana has recently opened Phase 2 with 115 additional units, which includes the “Palazzo Vacanza” (~10,000 sq. ft. State of the Art Amenities Center), large resort pool, spa and 2 tennis courts.

• 714 unit multi-family apartment complex on the Northeast corner of 56th and Deer Valley.

• 794 single family homes on the Northwest corner of 64th Street and Lone Mountain Road.

• 302 single family homes on the Northwest corner of 56th Street and Dixileta Drive.

future Development • 147 units The Manor Village Life Center is proposed for with hopes of

commencing construction simultaneously with Phase II of The Toscana Vacation Resort Suites.

• New Cancer Center at the nearby Mayo Clinic.• Emerging Arizona Biomedical Corridor just a couple of miles away.

high street rising High Street has experienced a tremendous surge in activity and leasing tours since SKB purchased the property in April 2013. With SKB’s competitive rates, generous TI allowances and willingness to work with tenants, High Street is on a clear path for success. Overall an additional 186,000 square feet has been signed, and new tenant announcements continue each month. current hospitality tenants have experienced a 7-30 percent sales growth year-over-year. Recent highlights: toby keith’s i love this bAr noW openThe 14,336 square-foot, full-service bar features live country music, country dancing as well as local, regional and national up-and-coming artists.

sprouts fArmer’s mArket noW openSprouts relocated their corporate office with approximately 330 team members to High Street. They occupy approximately 77,400 square-feet of office and retail space, which includes a Sprouts Express retail store.

DeAls signeD since April 2013• La Bocca Wine Bar & Urban Kitchen • 42 Saint • Primp & Blow • Tummy Company, Inc.• Murphy Orthodontics • Desert Ridge Pediatric Dentistry• Desert Ridge Prosthodontics • Mojo Yogurt• Stealth Software • Gigya, Inc. (social media)• Alliance Home Loans • Yeager North• Watermark Wealth Strategies • M3V — The Nail Bar• Hanover Wealth Strategies • Tea2Go• Barbershop Jack’s • Arizona Vacation Rentals• Rick Bronson’s – House of Comedy • Pinspiration• Nobis Technology • Altus• RG Capital • WJ Bradley• Impact Global Resources • Navitus Health Solutions• New American Funding • Firehouse Subs

eXpAnsions AnD renovAtions High Street has undergone a series of targeted renovations and enhancements including new building and monument signage, improved lighting, landscaping and more to maintain its impeccable building standards. Additionally, a second parking garage was built to better serve guests on the east side of the property.

WHAT’S NEXTEXCITING NEW ADDITIONS TO HIGH STREET

High Street’s marketing program emphasizes relationships with the AZ Office of Tourism, Phoenix and Scottsdale Convention and Visitors Bureaus as well as partnerships with nearby resorts and hotels, including the JW Marriott Desert Ridge, to ensure exposure to this important consumer base.

ArizonA tourism • In 2013, 39.1 million domestic and international overnight travelers

experienced Arizona, which equates to approximately 110,000 visitors a day• These travelers contributed $19.3 billion in spending. • Greater Phoenix consistently ranks among the nation’s top cities in the number of

Five Diamond and Four Diamond and Five Star and Four Star resorts• Arizona is ranked in the top five “most popular travel destinations for golfers”

according to the National Golf Foundation. Peak season is January through April. There are 421 golf courses in Arizona, 53 are located in Scottsdale

• Greater Phoenix is home to more than 200 golf courses

scottsDAle• Scottsdale hosted and estimated 8.9 million overnight visitors in 2012, and

7.78 million day visitors with an economic impact of $3.39 billion to the local economy

• The typical Scottsdale visitor is 58 years old with a median yearly income of $96,300

• Scottsdale visitors’ top 10 activities are: shopping, day trips, art galleries & museums, nightlife, Western culture & attractions, Native American culture & attractions, outdoor activities, spas, special events and golf

• In Scottsdale alone, there are an impressive 12,000 hotel rooms. Nearby luxury resorts include: JW Marriott Desert Ridge, Scottsdale Fairmont Princess, The Westin Kierland, Hyatt Regency Scottsdale Resort, Four Seasons Resort, The Boulders and Sanctuary Resort.

* Source: Arizona Office of Tourism, Scottsdale CVB and VisitPhoenix.com

no other industry produces the same

economic impact for the grand

canyon state as its tourism industry.

As a matter of fact, high street’s trade area receives more

annual visitors than the grand canyon.

TOURISM’S IMPACTA BIG PART OF THE HIGH STREET STORY

high street is poised to become the #1 dining and entertainment destination in the northeast valley, filling the void that mature and affluent customers in the trade area are seeking.

DEMOGRAPHIC INFORMATIONBY THE NUMBERS

Source: ESRI Business Analyst

population 2018 Projection 55,309 178,670 575,312 4,606,364 2013 Estimate 51,140 167,679 541,801 4,333,245 Growth 2013-2018 8.15% 6.55% 6.19% 6.30% Population within 30 min drive time: 2,042,024 2013 est. employed pop. 16+ 26,441 85,379 264,783 1,851,676 2013 population by Age Age 0-4 6.2% 6.1% 5.8% 7.3% Age 5-9 6.6% 6.5% 6.0% 7.2% Age 10-14 6.6% 6.7% 6.2% 7.1% Age 15-19 5.8% 6.0% 5.8% 6.8% Age 20 and over 74.9% 74.8% 76.0% 71.6% Age 25 and over 69.1% 69.0% 70.0% 64.4% Age 65 and over 11.3% 12.6% 14.9% 13.2%

2013 est. median Age 37.6 38.8 40.5 35 2013 est. pop. Age 25+ by educational Attainment 35,343 115,676 379,858 2,639,059 Some College, no degree 22.2% 23.8% 24.1% 25.5% Associate Degree 8.3% 7.7% 7.8% 8.2% Bachelor’s Degree or Higher 50.6% 42.9% 41.2% 28.4% 2013 est. households by household income 21,467 68,033 226,145 1,589,107 Income $50,0000 - $74,999 19.9% 19.1% 18.2% 19.9% Income $75,000 or Higher 47.6% 43.1% 41.2% 32.5% 2013 est. Average household income $95,122 $87,704 $86,886 $70,1792013 est. median household income $70,746 $63,652 $60,591 $52,0092013 est. per capita income $39,986 $35,705 $36,414 $26,112 2013 est. Average All owner-occupied housing value $298,042 $285,633 $310,562 $206,5742013 est. All owner occupied housing units 13,429 44,368 146,683 1,005,6432018 projection of new housing units 1,452 4,139 12,027 98,026

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HIGH STREET EVENTSHigh Street has become a gathering place for families and friends both in the Desert Ridge neighborhood and around the Valley. VIP fundraisers, high-energy concerts, bustling farmers markets and engaging family events bring the community together time and again. The contemporary architecture and tree-lined streets frame the “Events on High Street” and become the perfect backdrop for charity block parties, holiday events and family celebrations.

engAging our AuDienceEach event is strategically approached to leverage additional opportunities for expanding general consumer awareness of restaurants and retailers. Public Relations TV, print and online coverage, bounce back coupons, social media outreach and paid advertising enable High Street retailers to engage with new audiences through each event.

The Shops and Restaurants on High Street 175,000 sq ftThe Offices on High Street 330,000 sq ftThe Residences on High Street 123,000 sq fttotal 2014 owned sq ft. 628,000 sq ft

Phase 2: Future Development Pad 212,500 sq fttotal sq. ft. 840,000 sq ft

Accessible locAtion AnD convenient pArkingHigh Street is conveniently situated along Loop 101 at 56th Street and Deer Valley Drive in Northeast Phoenix and offers convenient valet and surface parking on High Street as well as covered parking in the six-story parking garage that houses 1,422 spaces.

sustAinAble DesignEnvironmentally conscious planning and sustainable elements such as recycling programs and water efficient landscaping have been incorporated into every aspect of High Street.

PROJECT FACTSMORE ABOUT HIGH STREET

Developed in 2008, high street is a 628,000 square foot mixed-use development that includes retail, restaurants, office and residential units creating a true 24-7 environment.

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Conceptual Design PackagePHOENIX, AZ | #314097 | FEBRUARY 03, 2015

City North A2 | A14

© Nelsen Partners, Inc. 2014

Conceptual RenderingAmenity Deck Between A2 & A14

PHASE 2: FUTURE DEVELOPMENT PADconceptuAl Design

Formed in 1993, SKB is a fully integrated real estate merchant-banking firm based in Portland, Oregon with additional offices in Seattle and Denver. Investment types include office, retail, industrial and mixed-use. SKB also funds bridge loans and periodically provides equity to select developers of ground-up development projects located in the Western United States. SKB has originated total portfolio activity of $2.77 billion comprised of 20.3 million square feet of office, industrial and retail space and 1,955 residential units. With longstanding relationships in each of its markets, SKB has the ability to source, structure and execute value creation across a wide spectrum of real estate opportunities. You may learn more by visiting the company’s website at skbcos.com.

Based in Wayzata, Minnesota with branch offices in Boston, Houston, London, and Mumbai, Wayzata Investment Partners LLC is an SEC registered investment adviser to private investment funds with in excess of $7 billion in assets under management. You may learn more about Wayzata Investment Partner’s by visiting the company’s website at wayzatainvestmentpartners.com.

THE OWNERSHIPSKB AND WAYZATA INVESTMENT PARTNERS

a unique opportunity in a dynamic location

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