Property Management

and Leasing

“As a recognized leader in the commercial leasing and property

management industry, our mission is to create and implement

management plans that exceed our clients’ goals and expectations.”

Offices in Birmingham and Huntsville Alabama

(888) 539-1686 | www.chasecommercial.com

Executive

Summary

NAI Chase CommercialLeading full service real estate company

NAI – International Resources

Extensive Commercial Management Experience

Advanced Information Systems

Marketing and LeasingGlobal Network of Agents

Powerful Marketing

Tenacity

Liability ProtectionEstablished Emergency Response

Cost-savings from property insurance

Lease AdministrationSingle Source software to ensure all rent-ups & reconciliations occur

Lease enforcement procedures - rent collection to premises condition

MaintenanceVolume bidding for highest quality at lowest contract prices

Property inspections for quality control

Contract administration and enforcement

Certificate of Insurance tracking

Preventative Maintenance Procedures

Repair request tracking system

Financial AdministrationPowerful software and flexible reports

Full financial package including income, expense and control reports

Budget to actual comparison for monthly and year-to-date income and expenses

Bank Reconciliations

Audit procedures

Internal AccountabilityAccounts Receivables

Lease Renewals

Budget Comparison

Response Time

Tenant Relations

Trend Analysis

Report timing and accuracy

Other Available ServicesAsset Management

Finance

Development

Consulting

Receivership

NAI Chase

Commercial

Vision StatementEthics, integrity, execution; NAI Chase Commercial strives for excellence in

all facets of real estate services in order to provide our clients with premier

services and best practices in the industry. Our team transforms forward

thinking ideas into cutting edge applications, to achieve maximum results for

our clients, company and community

BackgroundNAI Chase Commercial and its principals have over $320 million and 60

years of combined real estate experience and is a leading full-service real

estate organization with the ability to handle all facets of real estate

transactions. NAI Chase Commercial grew by solving the real estate

problems of its diverse client base and capitalizing on market conditions and

competitive weaknesses.

Today, NAI Chase Commercial manages office, retail, and industrial space

valued well in excess of 200 million dollars and is recognized as one of the

leading commercial property management and brokerage firms in Alabama.

The company is organized in mutually supportive areas.

Property Management

Leasing and Brokerage

Acquisition and Disposition

Facilities and Building Maintenance

Finance

Construction/Renovation

Development and Build to Suit Services

Adaptive Reuse and Strategic Planning

Land Acquisition

Team members within each area provide expertise in all aspects of

commercial real estate and allow resources to be seamlessly integrated to

provide clients with unsurpassed flexibility and responsiveness.

National and International ResourcesNAI Chase Commercial is the NAI affiliate exclusively representing Central

and North Alabama. NAI is the world’s largest affiliation of independent

regional companies and represents more management and brokerage

assignments than any other affiliation or company. This affiliation allows NAI

Chase Commercial to represent properties for leading corporations and

buyers throughout the country. NAI gives NAI Chase Commercial the ability

to represent real estate interests on a scale that is not available to any other

real estate organization in this market.

Information Systems

& Integration

NAI Chase Commercial offers unmatched information systems for property

management, accounting, leasing and brokerage. We use PC-based systems

with file servers over local and wide area networks as well as web based

applications. Using internet connections, T-1 lines, desk top computers, laptops,

and smart phones we are able to access all of our information from just about

anywhere.

Chase’s information systems are designed to provide a full ―360 degree‖ view of

the tenant and property performance. Our team, with the ―click of a mouse‖, can

readily see such items as: a lease document and all of its amendments,

outstanding rent, lease options, lease expirations, rent increases, payment

history, written correspondence, repair tickets, and notes of all pertinent

telephone calls and face to face conversations. Along with our philosophy of

capturing information at the time of its occurrence, our information systems

design provides all of our team with a real time and unparalleled grasp of all

information needed to be highly effective in managing each and every property.

Several software applications are used to achieve our information systems

design goals. CenterSoft™ for accounting and lease administration. Angus™ for

tenant repair requests, preventative maintenance, repair responsibility tracking,

and tenant CRM. Google Mini™ for our searchable intranet knowledge base of

policies and procedures. REA™ for building canvassing and CRM for leasing

and brokerage. Microsoft products are used for our electronic document and

correspondence filing.

Why

NAI Chase Commercial?

Professional property management is critical to ensuring the longevity and

vitality of your commercial real estate investment. NAI Chase Commercial

provides proactive management and integrated resources to preserve and

enhance the value of each of your company’s real estate assets.

Our NAI network, which currently manages more than 250 million square feet,

shares best practices and stays on the absolute cutting edge of the industry.

We stay on top of market trends by actively participating in organizations such

as the Certified Commercial Investment Member (CCIM), Institute of Real

Estate Management (IREM), Building Owners and Managers Association

(BOMA), National Association of Industrial Office Parks (NAIOP), International

Council of Shopping Centers (ICSC), and the Society of Industrial and Office

Realtors (SIOR).

We devise and implement a plan that increases cash flow and return on your

investment, ultimately creating additional value for you. This goal may seem

obvious, but it is a continuing challenge for investors everywhere. NAI Chase’s

Property Managers begin with the fundamentals of property management then

think well beyond the obvious to deliver innovative and actionable solutions for

your assets.

When making the final decision about a professional property management

provider, we believe the decision often becomes one concerning more than

programs, procedures, technology and reputation. The ultimate decision often

concerns the people involved with providing the service.

Our Chief Financial Officer oversees all property accounting.

Certified Property Managers® lead property management for all properties.

We have highly experienced and designated brokerage and leasing agents.

Tenant relationships are developed and maintained, an essential part of our

marketing campaigns.

We are global in our thinking, yet local in our approach.

The individuals that are NAI Chase Commercial have a personal desire to do

the best. Working as a unified team, NAI Chase Commercial is able to harness

the combined creativity and drive to produce superior quality and results. That

is why NAI Chase Commercial is known for “Strength of Experience, Power

of Vision”.

Marketing & Leasing

Services

Power of the NAI Global NetworkNAI is one of the world’s top brokerage services companies, with 5,000

professionals in 325 member firms located in 55 countries. It is the world’s

largest managed network of commercial real estate firms and consummates

over $45 billion in real estate transactions annually. NAI Global is not just a

network — we’re a managed network structured to provide smart thinking and

fast action on behalf of clients operating in corporate, institutional and

government sectors around the world. We move with the efficiency and

flexibility of a strong, nimble organization leveraging our local expertise and

global relationships to access the best opportunities, locally, nationally and

worldwide.

Advanced and Aggressive MarketingWe evaluate your property's strengths, weaknesses and competitive market

opportunities. We make solid recommendations to improve the market

perception of a property, to make it more attractive to potential users, or to

reposition and reintroduce it with broader appeal or greater revenue potential.

NAI Chase Commercial maintains the highest standard for marketing all

classes of properties and types of space. Quality marking materials are

incorporated in a multifaceted distribution of information. Highly-visible and

very recognizable signs generate calls. Flyers, direct mail, and direct email are

used to convey information to the tenant, owner and brokerage communities.

Internet marketing incorporates a number of sites: Loopnet, CCIMREDEX,

Google, Lycos, OLX, Oodle, Propbot, Vast, Commercial Source, Property Line,

Real Up, and Proxio, as well as the power of the proprietary NAI Global

internal marketing network.

NAI Chase Commercial also markets the old fashion way, we canvas our local

markets. By continually canvassing we achieve a comprehensive

understanding of competitive buildings strengths and weaknesses as well as

upcoming lease expirations, expansions, or contractions. Continually talking to

businesses throughout our local markets provides us the information to attract

new tenants to our properties by knowing who, what and when opportunities

will arise.

ReportingWe incorporate Contact Relationship Software in our leasing/brokerage

process. Thus we are able to provide very accurate and up to the minute

contact reporting. Our management team receives a daily contact and activity

report from all leasing associates allowing upper management to both monitor

and pro-actively assist all leasing associates.

The standard monthly reporting package includes:

Contact report

Activity Pipeline report

Lease Expiration report

Vacancy report

NAI Chase Commercial Specialties Retail

Office

Medical

Corporate

Industrial

Government facilities (local, state and federal)

Services we provide within our specialties:

Landlord/Owner Representation In-depth market and property analysis

Proper positioning strategy

Tenant mix analysis

Leasing plans

Aggressive marketing

Professional marketing materials

Pre-qualification of potential tenants

Site tours: Attendance of all prospect tours

Proposal preparation and delivery

Skilled negotiations of contract terms and conditions

Lease contract preparation and delivery

Site Selection

Investment and Feasibility Analysis

Buy/Sell transaction negotiation

Tenant/Buyer Representation Current situational analysis and strategic planning

Market analysis and alternative identification

Site Location Selection

Site tours: Attendance of all prospect tours

Municipal incentives identification and negotiations

Comparative property, infrastructure and financial analysis

Transaction negotiation

Services delivery from first contact to move-in

Complete Tenant Relocation Services

Lease Negotiation

Retailers have unique needs

NAI ReStore

NAI ReStore is designed to provide leading retailers, franchisors and franchisees

with access to best-in-class global site selection and market analysis, tenant

representation, acquisition/disposition, property management and other retail real

estate advisory services. This vital service offering enables chain stores to

prudently and profitability manage, optimize and expand their retail real estate

network on a local, nationwide and/or global basis.

NAI ReStore can help retailers, franchisors and franchisees with the following

services:

Global Market Analytics: We use a holistic approach to help chain stores

optimize their store and distribution networks. This includes analysis of detailed

geo-demographic data, customers and competitors, all down to street level

granularity seamlessly across 65 countries. This produces a cohesive vision to

keep the network the correct size, in the right locations, targeting the right people

at the right price points.

Tenant Representation: We first utilize the ―SAS‖ (Site Attribute Survey)

developed by our global market analytics group to pinpoint site selection more

accurately. SAS lays out the metrics and parameters historically shared by all ―A‖

stores and translates them into acceptable ranges and site selection criteria for

each chain within each market. This enables our local Tenant Representation

Specialists in over 325 markets, working closely together with our national and

global retail teams, to implement each retailer’s strategic expansion plans with

greater reliability and consistency. We also are able to help retailers cut costs

through a process that includes market analyses, identification of alternatives,

negotiation of incentives, comparative property, infrastructure and financial

analyses and lease negotiation.

New Development and Leasing: Through our locally owned offices, we know

and work closely with local officials, property owners, financial institutions,

investors, merchants and strategic development partners in each community. So

we can flexibly procure and develop first choice targeted locations- whether

leased, ground-leased, acquired or a sale-leaseback. We can also help pre-lease

properties with synergistic co-tenants or develop the excess land separately for

that purpose.

Dispositions, Investment Sales and Sale-Leasebacks: In a retail disposition

industry filled with middlemen who may take on assignments only to farm out

much of the heavy lifting to local brokers like ours, we can take on these

assignments directly, and pass on more savings to you. To unlock some or all of

the value in any your retail properties, our incredible technology and local and

global infrastructure mean we can bring your dispositions to the attention of

interested merchants and investors worldwide.

International: We offer the most comprehensive market coverage of any global

real estate services provider. NAI offices are owned and staffed by local experts

with deep roots and strong ties to the local community – people who understand

the local market dynamics and know how to get things done. Combine this market

knowledge with our geo-demographic analytic studies of 65 countries and we can

help franchisors and franchisees successfully penetrate any international market

with pinpoint accuracy.

Emergency Response

Participation

Property managers and maintenance personnel are on call 24 hours a day to

respond to tenant emergency situations.

One phone number serves for repair requests, daytime emergencies and

nighttime emergencies. Calls are answered during the day by a property manager

assistant. Nighttime emergency calls are automatically routed to the cell phone

number of our on call person. We strive to have all of our calls answered 24 hours

a day by a real live person.

In the case of a building or area emergency, NAI Chase Commercial has

partnered via Angus™ Systems with MIR3™ Intelligent Notifications to provide the

most advanced emergency notification system available. This system is the same

used by major universities and key government agencies for notification of

emergency situations. MIR3’s Intelligent Notifications not only get the messages

delivered, but also allows recipients to respond, providing real-time updates to and

from a variety of modalities, including mobile phone, land line, PDA, email, pager,

TTY, fax, text messages (SMS) and other devices. Notifications of emergency

situations are sent to key contact individuals of each tenant.

Facilities ManagementPreventative Maintenance &

Tenant Services Requests

Maintaining the property in excellent condition is paramount to the long term

viability of the property. Proper maintenance has profound effects on the ability to

attract new tenants, tenant retention and lender satisfaction.

Preventative MaintenanceA determination of preventative maintenance needs is made by our director of

maintenance and reviewed by the property manager. Once these needs are

determined, a list of preventative maintenance tasks is compiled and assigned a

frequency of occurrence. This information is entered into our web based

preventative maintenance system. PM tickets are generated by the system and

emailed to the smart phones of our maintenance personnel or contractors. Each

item has a specific time frame in which to be completed. Our system flags and

reports items that have not been completed and sends an escalation email to both

the maintenance supervisor and property manager.

Tenant Service RequestsTenant Service Requests (TSR) play an important role in tenant retention. Thus

an effective and responsive system is required. Tenants call a single number for

maintenance requests or repairs. Tenant service requests are entered into our

web based TSR system. The system emails the service request to the proper

maintenance person or contractor’s smart phone. The TSR has a priority

assigned to it which dictates the time frame in which it is to be completed. Items

not completed within the allotted time are escalated via email to the director of

maintenance and the property manager.

Most importantly, the landlord should not incur the cost for work that is the

tenant’s responsibility to complete. The repair responsibilities dictated by the

lease are abstracted for on-screen viewing when the tenant calls with a service

request. If the item is not the landlord’s responsibility, we can immediately

discuss the repair with the tenant and guide them to the proper solution.

ReportingDaily reports of the Tenant Service Repair requests are emailed to the director of

maintenance, the property manager and senior management.

Our monthly standard reporting package includes:

Requests for Tenant Services and Repairs

Summary of requests for the month

Trend analysis – 15 month graph by category

Response time

Monthly Preventative Maintenance completed/open items report.

Tenant Relations &

Problem Resolution

Communication is a key element of building and maintaining a collaborative

relationship with tenants. We continually solicit feedback from tenants via one

on one conversations between the property manager and the tenant

representative, call confirmation of satisfaction for EVERY tenant repair

request, surveys for random individual tenant repair requests, and entire

tenant population surveys. The information gathered provides a basis of

understanding and trust between the property manager and the tenant.

Property managers at NAI Chase Commercial understand the key to problem

resolution is quick and accurate responses to tenants.

Lease Administration &

Enforcement

Lease AdministrationLease administration require accurate and organized records to ensure all lease

are properly documented. Lease files are established with the lease and relating

correspondence for each site to provide easy access to a full set of information.

A complete lease abstract of ALL important dates and rental amounts for the

ENTIRE term of the lease are entered into CenterSoft™ immediately after the

lease is executed. This ensures, over the term of the lease, notification and

option dates are met, rental increases implemented, pass through and

reconciliation billings are accurate and timely, and any and all date sensitive

information is handled in a timely manner. As issues arise, our tenant contact

management systems and on line lease and correspondence filing provide ready

access to information to be sure all parties are properly abiding by the lease

agreements.

Lease EnforcementLease administration controls ensure accurate lease abstracting, record keeping,

and accounting. The administration process monitors compliance with the terms

and conditions of each individual lease. If the lease terms are not being met, then

the enforcement provisions identified within the lease or by law are enacted in

accordance with client direction. As a general rule, NAI Chase Commercial takes

a strict approach to enforcing the terms of a lease and expects to be held to

equally high standards in fulfilling the landlord’s responsibilities thereunder.

Contract

Administration

Vendor and Contractor LiaisonBeing a third-party management company, the liaison role is typical for NAI

Chase Commercial. Coordinating vendors, controlling the bid process and

supervising construction and maintenance companies is the routine for us.

Because the scope of work performed by NAI Chase Commercial, new bidders

and favorable pricing may be introduced as a result of increased volume. The

large portfolio currently managed by NAI Chase Commercial allows the company

to have significant pull with vendors and contractors who are very interested in

securing and maintaining contracts with the company.

ComplianceContract compliance is measured through regular and frequent inspections of

the products and services provided. The inspections allow a comparison

between the agreed term and conditions of the contract, and corrective action is

taken as needed for the contractor or vendor to improve service.

Service and Equipment ContractsService and equipment contracts are often technical and must be in compliance

with a manufacturer’s specifications. Working from experience, with vendors or

with specialized consultants, a scope of service is identified and bids are

solicited from qualified contractors. Bid approval is sought based upon the

payback analysis if one has been performed for the equipment, or by identifying

the relative strengths and weaknesses of particular responses to the bid

process. Naturally cost is a factor, but the ability to properly perform is even

more critical. So while the low bid is sought, it is not necessarily the bid

recommended. Notably, all contracts are rebid every two years prior to the

annual budget preparation.

Maintenance, Housekeeping and SecurityProperly accessing the quality requirements along with the financial expectations

allows for the establishment of a proper scope of work. Monitoring compliance

requires both formal and unannounced inspections and making modifications to

procedures or performance as required. Periodic coordination meetings are held

on a predetermined frequency; weekly for high requirements, every 2 weeks for

medium requirements and monthly for low requirements.

Specialized Service and Property ModificationSpecialized services require a clear understanding of the issues being

addressed. While the management team experience typically allows even

specialized services to be contracted without outside assistance, there are

occasions when a specialized consultant will be retained to ensure the work

scope and compliance are in order. Examples may include operational issues

such as evaluating the scope and compliance with elevator maintenance

contracts, or major capital improvements such as roofing a large structure or

cleaning historically significant architectural details.

Subcontracted ServicesThe specific services required vary depending upon the particular facility and

its use. In general terms, NAI Chase Commercial will supervise the following

categories of work but the work tasks will be subcontracted.

Building Maintenance Repairs

Preventative Maintenance

Snow Removal

Landscaping

Janitorial

Parking Lot Sweeping

Mechanical Maintenance HVAC

Plumbing

Electrical

Elevator

Capital Improvement Projects Tenant Improvements

Space Planning

Building improvements

Building Systems Guard Service

Fire Panel

Camera Systems

Access and Alarm Systems

Reviewing Existing Service ContractsA cursory review of the contracts is necessary to set up our tracking systems,

but a more in depth review is needed to understand the merits of the contract.

A proper review requires an understanding of the terms and conditions of each

agreement, and evaluation of related work, a discussion with the contractor,

and potentially redefining the scope of work and rebidding.

Determine Local and National Qualified Service ProvidersDue to the large volume of development, construction and property

management work conducted by NAI Chase Commercial, it is easy to locate

qualified service providers for most any project. When selecting a service

provider, it is important to know the provider’s capabilities in the market.

National service providers may enjoy a fine national reputation, but if the local

division is lacking or under qualified, then the national affiliation is of little value.

NAI Chase Commercial will establish specific criteria for contractor

qualification. Based on the criteria, a list of qualified contractors will be

established from current vendors and others who provide service to NAI Chase

Commercial.

Competitively Bid Service ContractsNAI Chase commercial is actively involved in contracts with Federal and State

governments and as such has a requirement to take multiple bids for projects.

Our standard operating practice has always been to take multiple bids for

projects, and meet all applicable laws and regulations.

Proposal requests will be prepared in accordance with the standard procedures

followed by NAI Chase Commercial. Typically small jobs are not reduced to

formal RPF formatting, but the scope of work is sent to interested and qualified

contractors. Bids are evaluated on merit when received. More formal RFP’s are

created for large jobs with a detailed work-scope, and timeline. In the case of

major work of a highly technical nature, a specialized consultant may be retained

to review the project and prepare the RPF under the guidance of NAI Chase

Commercial.

Negotiation of Service ContractsService contracts are negotiated to obtain the most favorable terms. Depending

on the size and type of contract, a RFP may be prepared and distributed to

qualified bidders. Once the RPF is received, additional steps are taken to ensure

the contractor understands the expectations and agrees to the conditions of the

RFP. Modifications are discussed if necessary to explore methods of obtaining

desired results in a more efficient method. The final contract is executed and the

work commences.

Vendor Insurance ComplianceIn order for a vendor to commence work, a contract is executed and a certificate

of insurance for public liability and workman’s compensation is required with

typical limitations of liability are $1,000,000/$2,000,000 respectively. Compliance

with this procedure is tracked via our web based system including automatic

verification of insurance certificate compliance. The web based system allows

field personal, via smart phones, to readily identify approved contractors for each

property.

Financial

Administration

Budget Preparation and TrackingAn initial budget review will occur in order to become familiar with the current

performance expectations. Revisions will be recommended as the management

plan develops, but the revisions generally are tracked as variance items and do

not recast the budget.

The budget process typically runs on a calendar year, but can easily

accommodate a fiscal year format if required. Information is accumulated

throughout the year and in September and October the initial draft of the next

year’s budget is prepared. The draft incorporates detailed leasing projections,

income calculations, operational expenses, a capital improvement plan and a

detailed business plan for the budgeted year. The bottom line shows cash flow

by month. The budget is reviewed and revised by our management team and

then submitted to ownership for comment, revision or approval by the end of

November

The budgeted performance is reviewed monthly and if conditions require, it is

reforecast mid-year. The monthly review is reported via the budget comparison

report which is included in the monthly financial package. This report shows the

actual and budgeted income and expenses for the current month and year-to-

date periods. Variances are computed for each line item and used as the basis

for the financial report narrative. While the budget is a critical to track any

variances from the Operating Budget, proper rent collection procedures, expense

control and ongoing budget tracking are ingredients to produce minimal budget

variances.

Collection of ArrearagesUnless directed otherwise, NAI Chase Commercial takes a very hard line on

collection. The lease term dictates the payment terms and the tenants are

expected to abide by the lease terms, just as the tenant expects NAI Chase

Commercial, on behalf of the owner, to abide by the lease terms. Non-payers will

receive a phone call, follow up by a letter stating late fees (if applicable), then a

written notice of delinquency. If payment is not promptly received, a notice of

default of the lease is sent followed by eviction proceedings. It is the rare case in

which a tenant does not pay prior to the commencement of eviction proceedings.

Monitoring of Financial PerformanceThe monthly financial reports indicate actual performance compared to budgeted

performance. A careful review of the variances allows NAI Chase Commercial to

provide explanations and revised forecasts if necessary. Performance factors

can quickly be adjusted if the financial projections are favorable or unfavorable to

expectations.

Real Estate Tax AppealEach year NAI Chase Commercial monitors and directs real estate tax appeal

work for clients. The appeal process involves analyzing each site to see if the

site market conditions changed to favor a lower taxable value. Large local or

regional firms conduct the appeals on a contingency basis.

Year End ReconciliationA year-end reconciliation of operating expenses is performed for all properties in

order to recapture the cost of all allowable items as determined by each

individual tenant lease. In order to enhance the accuracy and timeliness of the

reconciliation billings, our use of CenterSoft™ accounting software fully

automates this process by incorporating information gathered as part of the

lease abstract with actual expenses incurred over the reconciliation period.

Additionally, as part of the reconciliation billing process, all expenses are

benchmarked against comparable managed properties as well as published

comparable numbers via organizations such as IREM, BOMA and ICSC.

Utilities ManagementTo effectively manage and control utility costs, we track each and every utility

invoice in our utility database. Through a relational database we associate the

meter number, suite number and account number to the key billing elements of

the particular utility, meter readings and costs. We print a 15 month history of

cost and usage for each utility invoice received so the property manager can

readily determine trends or causes of concern when approving the invoice for

payment. This database also ensures that owner’s do not pay for utilities that are

the responsibility of the tenant.

Property Management Accounting SoftwareCenterSoft™ property management software handles all our our Lease

Administration, Accounts Payable, Accounts Receivable and General Ledger.

This application incorporates a unique data structure which puts the lease

document as the heart of the software, adapting easily to unique lease clauses

and calculations. On a monthly basis, all parties receive a full accounting

package containing our standard reports to document all financial activity of the

property. Standard reports can be modified or supplemented to meet any specific

reporting needs. Additionally, we are able to export and upload data from

CenterSoft™ to ownerships' corporate accounting software.

Sample Reporting PackageSample reports are included in the Appendix to this proposal to illustrate the

standard formats offered by the CenterSoft™ accounting system. Variance

reports are designed to meet the needs of the asset manager. While the

accounting system offers a myriad of customizable reports, the following are the

essential elements of our standard reporting package:

Income and Expense Reports Rent Roll Lists each tenant or vacant suite, square feet, expiration, option

periods, base rent, additional rents, and security deposit liability

Unit Encumbrances A list of all units itemizing encumbrances for each

space, such as: first right of refusals and exclusives.

Tenant Ledger Shows the beginning balance, charges by type (rent, CAM,

tax, insurance, late charge, reconciliation, etc) collections, check number,

amount of check, application of payments against charges and ending

balance for each tenant.

Aged Receivables Report Shows the aging of any balance due listed by

tenant.

Operating Income Statement and Budget Comparison Report By chart

account, shows the actual and budgeted income and expenses for the

current month and year-to-date periods. Variances are computed for each

line item and used as the basis for the financial report narrative statement of

actual expense, budget and variance

Control Reports Bank Statement A copy of the bank statement for each account

Bank Account Reconciliation Performed to ensure the accounts are in

balance, and a copy of which is provided

Management Fee Reconciliation Provided to show management fees

billed and paid tie to the management agreement

General Ledger Detail Detailed income and expense itemization by chart

account showing:

Income listing each line item with the type, date and amount of

billings and receipts

Expenses listing each invoice paid, invoice number, vendor,

description, check number and amount

GL adjustments listing each with a description of the entry

Controls &

Banking

Banking RelationshipsNAI Chase Commercial has relationships with a number of major banking

institutions and is able to work with specific client needs to determine the best

solution to use for a given project

Trust AccountsAll funds are held in trust accounts for the entity under contract, and no funds

are commingled. Expenses are paid from a disbursement account that is

funded by the property trust account. Debt services or any other approved

expenses would be paid in the same manner. Surplus funds available at month

end are remitted to ownership, based on the management plan which allows

for working balancing remaining in the property trust account.

Rent CollectionNAI Chase Commercial will aggressively market the building for lease in

attempt to stabilize the asset and it value. Rent collection is a paramount

concern and a major focus of management and accounting activity. By abiding

by the landlord lease responsibilities, providing proper tenant service and

building maintenance, NAI Chase Commercial is able to strictly enforce the

tenant lease obligations.

To ensure all rents and other charges are assessed properly leases are

thoroughly and carefully abstracted by the property accountant into the

accounting system and reviewed by the property manager and controller. The

accounting abstract covers all items and events over the entire term of the

lease and includes items such as: rent, rent escalations, rent abatements, pass

through expense calculation methods, percentage rent, any other type of billing

charge, sales reporting requirements, notice dates, option dates, expiration

dates, first rights of refusal, and any other possible date sensitive item that may

be encountered in the lease. The accounting system has control mechanisms

to verify each and every item is billed or addressed automatically by the

system and at the correct time.

The accounting system generates monthly billings within the system, however,

we do not send invoices to tenants unless there has been a change in the

billing amount. This process adheres to the lease, saves time, effort and

paper. The accounting system notifies the property accountant of any changes

in billing amount so an invoice can be sent for that month.

CAM, tax, insurance and operating expense billings are estimated and charged

monthly. The accounting software reconciles the monthly estimate billings to

the actual expenses on a annual basis, or shorter period if allowed by the

lease. Balances due from tenants are invoiced, and both credit and debit

balances are reflected on the tenant invoice and tenant ledger.

As a general rule, rents are due on the first day of the month, late on the tenth

day of the month. The collection effort begins immediately on the fifth day of

the month with a friendly reminder phone call made by the property

bookkeeper; followed by assessment of a late fee (per the terms of the lease)

with written notice thereof; followed by written notice of default and a personal

visit by the property manager and, if necessary, evolving into an eviction

proceeding. Typically, even the most marginal tenant pays after the notice of

default has been sent and court action is avoided. Clients are informed of all

collection issues and notified before legal action is pursued. Once a collection

effort begins an open item is created in our tracking system. This system

generates a daily report enabling the property manager and senior executives

to be aware of daily collection activity.

Rents are entered into the accounting system and deposited on the day

received. As an additional control measure, the tenant checks are scanned

for deposit and the checking account number is used by the accounting

software to bring the proper tenant account on screen for application of

payment. This method increases accuracy, is fast and provides a preventive

measure against an undisclosed assignment of a lease.

By recording and depositing rental payments daily, cash flow is maximized

and records are always up to date for accurate and efficient follow up.

Expense ControlExpense control is a key ingredient for the success of both NAI Chase

Commercial and our portfolio of managed properties. A major advantage

offered by NAI Chase Commercial is our ability to negotiate price discounts

due to our volume purchasing power

By lowering pass-through expenses, the sites become more competitive and

can demand higher rents. In addition, tenants are more prone to renew leases

on properties with lower operating expenses.

Expense control begins with realistically budgeting for the property based on

ownership objectives. All anticipated expenses are competitively bid on a

regular basis so as to be certain we are paying the lowest prices possible for

the quality standards required.

Accounts PayablePurchase vouchers are used to ensure suppliers are qualified and hold true to

quoted pricing. At the time of purchase, the assistant to the property manager

creates the purchase voucher and codes the proper property and expense GL

account. It is then approved by the property manager . Once goods are

received, the purchase voucher is compared to the invoice to verify pricing is

correct, if so, it is immediately placed in the queue for payment processing.

The ownership approved operating budget governs the daily expenses of the

property. The Maintenance Director and the Property Manager work together to

keep expenses in budget. The Property Manager executes contracts and

controls vendor invoices in accordance with our policies and procedures.

Management ControlsKey elements of management are performed by one person and closely

checked by another. Such as:

Lease abstracting: Input of lease information into the accounting system and

the tenant service requests systems are vital to the ongoing day to day

management of the property. Thus, the property accountant enters the

accounting information into the accounting system, which is then verified by the

property manager. The repair obligations abstract is performed by the assistant

to the proper manager, then checked by the property manager.

Invoice Processing: It is imperative to correctly code expenses to the correct

property and GL account. This is done by either the assistant to the property

manager or the property manager. This coding is verified by the property

accountant.

Managers Daily Report: Property managers and senior executives receive,

via email, a daily report of all operational activity including notes of

conversations and emails with tenants including items such as: move in/out,

repairs and accounting issues. This report gives our management team an

unmatched grasp of the day to day activities for all properties.

Regional Builders, Inc. – We build relationships, by "Exceeding

Expectations".

Regional Builders is a service-oriented Construction Manager/General

Contractor providing construction and construction management support

services. We visualize ourselves as a construction department within the NAI

system. Working with owners and tenants to maximize design efficiency and

minimize costs, we build and facilitate all aspects of construction and design,

from concept to certificate of occupancy.

Regional Builders is a close and trusted affiliate of NAI Chase Commercial’s.

Since 1997 we have specialized in first class renovation projects, commercial

tenant improvements, and general retrofit construction for office buildings and

shopping centers in North and Central Alabama. With our experience and focus,

no job is too small or too large.

Regional Builders has seen steady growth throughout the years. With an

impeccable safety record, solid and trusted leadership, a thorough

understanding of construction, and with a reputation for being consistently on

time and on budget, Regional Builders is able to focus on not being one of the

biggest...but rather on being one of the best specialty construction firms you can

hire. Our goal is to be an innovative and value-driven firm construction

company. We pride ourselves on the ability to provide quality and timely

construction services for realistic costs in a safe work environment.

Construction Management,

Construction, & Renovation

Build on the power of our network.™

2009 Global Competition*

325

362

238218

203

150118

0

50

100

150

200

250

300

350

400

NAI Global CBRE Colliers C&W JLL Oncor G&E

* # of offices as of April 2009

References

BankingMs. Penny Billings

President

Bancorp South

Huntsville, Alabama (256) 564-8446

Mr. Jay Oglesby

Senior Vice President

Wells Fargo and Company

Birmingham, Alabama (205) 414-9601

Business and InvestmentMr. Gerald C. Finn

Chief Executive Officer

NAI Global, Inc.

Princeton, NJ (609) 945 4000

Mr. Randy Wolfe

Vice President

NorthMarq Capital Inc.

Atlanta, GA (404) 237-2456

Legal and AccountingMr. William Sylvester, Esquire

Partner

Baker Donelson Bearman Caldwell &

Berkowitz

Birmingham, Alabama (205) 250-8372

Mr. Gary C. Hutto

President

Gary Hutto Management Consulting, LLC

Birmingham, Alabama (205) 807-5233

TenantMr. Stephen Burridge

Real Estate Facilities

Arrow Electronics

Melville, NY (631) 847-2000

Mr. Greg Hadden

Facilities Asset Management

Tennessee Valley Authority

Knoxville, TN (423)751-8305

OwnerMr. Gary F. Felsher

President

FGH Investments, Inc.

New York, NY (212) 759-0400

Ms. Anne O’Shea

Managing Member

San Francisco Residence Club

Berkeley, CA (510) 848-0272

State GovernmentMr. Billy Barnes

Real Estate Manager

Alabama Department of Revenue

Montgomery, AL (334) 353-9615

Clients

Partial List

Arrow Electronics

3D Research Corporation

AEPCO Engineering, Inc.

Aerotek, Inc.

Agilent Technologies

American Shingle, Inc.

Assurance Technology

Corporation

Avnet Corporation

Avocent Corporation

Bentley Systems, Inc.

Batteries Plus

BF Goodrich

Bedz Express

Boecore, Incorporated

Bonefish Grill

Booz Allen Hamilton

Brockwell Technologies

C.H Robinson Company

CACI International

CAS ITT Weapons

Systems

Casa Blanca Mexican

Restaurant

Chrysler Corporation

CIBER, Inc.

Chili’s Restaurant

Church’s Chicken

Cici’s Pizza

Cingular Wireless

City of Huntsville, Alabama

Comcast Cable

CVS Drug Store

Cybex Computer Corp.

Defense Investigative

Service

DESE Research

Corporation

Dominoes Pizza

Dynamics Research

Corporation

EADS of North America

Eagle Support Services

Eclipse Business Services

Edward Jones Investments

Eckerd Drug Stores

Future Electronics Corp.

General Services Admin.

Gold’s Gym

Hawk Enterprises, LLC

H&R Block

Holliday’s Fashion

IKON Business Systems

Internal Revenue Service

ITT Educational Services

Jacobs Sverdrup

Corporation

Jason’s Deli

Johns Hopkins University

Johnson Controls

Kelly Services, Inc.

K-Force, Inc.

Kentucky Fried Chicken

L3 Communications

Lanier Services Worldwide

Lenscrafter’s

Little Caesar’s Pizza

Lockheed Martin

Mail Boxes Etc

McAlister’s Deli

Mesa Associates

Millennium Enterprises, Inc.

Moog, Inc.

Motorola, Inc.

Movie Gallery, Inc

Mutual of New York

Mutual of Omaha

National Semiconductor

Newk’s Deli

Nothing but Noodles

Operon Bio Technologies

Palm Beach Tanning

Panera Bread Factory

Pratt & Whitney Military

Engines

Progressive Insurance

Publix Supermarkets

Q-Tec Engineering

Quantitech, Inc.

Radio Shack

RBC Bank

Red Hat, Inc.

Redstone Federal Credit

Union

Regis Hair Salon

Rite Aid Drug Stores

Rolls Royce Corporation

Royal Beauty Supply

Schaeffer Eye Care Center

Science Application

International Corporation

SELEX Sensors and

Airborne Systems, US

Sherwin Williams

Sikorsky Helicopter

Star Pharmacy

Discount Drugs

State of Alabama

Department of Revenue

Stephen Gould Corporation

Subway Real Estate Corp.

SunGard Trust Systems

Service Engineering Co.

Synapse Wireless, Inc.

Taco Bell

TDK Corp. of America

Tech USA, Inc.

Tecolote Research Corp.

Telcordia Technologies

Teledyne Brown

Engineering

Tennessee Valley Authority

The Aerospace Corporation

The Athlete’s Foot

The Boeing Company

The Protective Group

The Fresh Market

Titan Corporation

Tuesday Morning

UAW Legal Services

United Space Alliance

US Army Space and

Missile Defense Command

Wells Fargo Home

Mortgage

Vector Aerospace

Verizon Wireless

Wavelink, Inc.

Wyle Laboratories

Alabama Photos by B.J. Ray