Moderator: Fred B. Córdova, III, Senior Vice President / Investment Services Group, West Regional Manager, COLLIERS ASSET RESOLUTIONS TEAM Michael S. Adler, President – MAI, CPM, ADLER REALTY INVESTMENTS, INC. Mark Laderman, Managing Director — Los Angeles, TISHMAN SPEYER Matthew May, President, MAY REALTY ADVISORS Richard J. Plummer, Executive Vice President / Institutional Capital Markets, GRUBB & ELLIS COMPANY Sam Rosenwald, Partner, BLACK EQUITIES GROUP, LTD. Kevin Shannon, Vice Chairman, CB RICHARD ELLIS

1. Timing Matters CRE Value & the 4th Dimension DISTRESSED REAL ESTATE SUMMIT: CALIFORNIA Fred Cordova February 4, 2010

3. S&P 500 - $932

4. Commodities – C: $1.45

6. Vacancies – 10.9%

7. Values - $180-$300

8. Sales Volume – 4Q08: $200mCapital Market Institutional $ January 1, 2009

10. S&P 500 - $1126 (15.25 X F)

11. Commodities – C: $3.40

13. Vacancies – 13.5%

14. Values - $180-$300 psf

15. Sales Volume – Q4 $200mCapital Market Institutional $ Lender / Servicer Foreign / Private $ January 1, 2010

17. Industrial: availability 182 msf (12.43%); some mkts > 25%

18. Retail: rents in free fall; vacancies 20% to 50%

19. Multi-family: eff rents down > 25%; econ vacancy 40%

20. Development pipeline is dry across all

21. Unemployment >10%; Under Emp > 17%

22. Consumers => savers; deleveraging

23. EPS flattens without top line revenue growth

24. Federal, state, local deficits mountingS&P is up > 65% from 3/9/09 low Commodity prices are surging Feds proceeding with TALF CMBS II is underway REIT stocks have rebounded $1.5 to $2.0 T CRE debt to be restructured Fundamentals still deteriorating Values still dropping Cap rate spreads over T’s are 2 x norm Transaction pipeline is dry

25. 2010 CRE Values Timing Trumps Modeling

26. 2009’s Wild Ride Office Values and Sales Volumes Plummeted in 2009 Source: RCA Q3 -09

27. Recapitalizing CRE 2000 - 2010 With Values down 40%-50%, most equity is GONE Source: Emerging Trends in Real Estate (PWC/ULI)

28. Debt Maturities But is Manageable Looks Ominous $1.8T Bank debt is near term concern $215B near term CMBS will “extend and mend” Source: Emerging Trends in Real Estate (PWC/ULI)

29. The Tsunami Is a Myth

30. Timing Matters CRE Value & the 4th Dimension