Exclusive Listing Proposal

1. Exclusive Listing Proposal Prepared for: NITZE-STAGEN Frank Stagen Chief Executive Officer Kevin Daniels President Angela Davis Director of Property Management Prepared by: GVA KIDDER MATHEWS Ted McCaffray, Vice President Jim Kidder, SIOR, Vice President Craig Hogan, SIOR, Vice President September 9, 2003 Starbucks Center JK/proposals/Nitze-Stagen/Listing Proposal.ppt

2. Table of Contents Section II Section III Section IV Section V Section VI Section I GVA Kidder Mathews Team Marketing Plan & Timeline Executive Summary ListingStructure Property Overview MarketOverview

3. Executive Summary Property Starbucks Center consists of approximately 2,000,000 square feet on 17 acres. The property is the focal point of the SODO Business District. Two large areas are available: 36,000 square feet on the third floor and 80,000 square feet on the second floor. Real Estate Market There is approximately 65,408,953 square feet of industrial warehouse and office space in the Seattle close-in market. The current vacancy rate for mid-year 2003 is 5.68% (January 1, 2001 vacancy 1.9%). Triple net lease rates for comparable buildings average $0.25 to $0.30 per square foot, blended. Concessions of one-half month of free rent per year of the lease term are common. Office tenant improvements are generally provided on an “as-is” layout but with new paint and carpet. New office build-out is generally amortized. Rent escalations range from six to nine percent increases in the beginning of the fourth year of a five-year lease term.

4. Executive Summary Marketing Team We have assembled this team of professionals at GVA Kidder Mathews with the skills necessary to achieve the optimal outcome for Starbucks Center. Criteria used in assembling the team included: 1) experience in representing landlords and owners in the market; 2) track record in successful completion of similar leasing assignments; 3) high levels of integrity and strong relationships in the real estate community; and 4) diligent cold calling efforts. Ted McCaffray, in conjunction with Jim Kidder, SIOR and Craig Hogan, SIOR, will lead the GVA Kidder Mathews marketing team. Combined, these individuals have 50 years of experience with leasing institutional quality business parks. The balance of this report outlines our proposal to assist Nitze-Stagen in successfully leasing the Starbucks Center.

5. Property OverviewStarbucks Center Property Profile: Starbucks Center Address: 2401 Utah Avenue S.Seattle, WA Total Building Size: 2,000,000 SF Year Built:1912 - 2002 Clear Height:10’ Construction Type: Concrete poured in place Other: MultistoryFreight elevatorsSeismic upgrade

6. Property OverviewStarbucks Center Property Profile: Starbucks Center • Strengths • Quality corporate image • Central SODO location • Excellent access • Multiple office entries • Divisible • Near Port of Seattle • Managed dock-high loading • Concrete truck apron • Truck leveler • Dock equipment • Limitations • Low ceiling height • Freight elevators • Access to elevators is distant • Additional material handling

7. Property OverviewStarbucks Center Competitive Properties for Lease There are approximately 10 industrial buildings available for lease in the 35,000 to 100,000 square foot range. The lease rates for comparable buildings range from $0.25 to $0.30 per square foot, triple net. Rent for office ranges from $0.30 to $0.70 per square foot, depending upon whether it is existing office or build-to-suit.

8. Property OverviewStarbucks Center Competitive Projects for Lease SUBJECT

9. Property OverviewStarbucks Center Competitive Projects for Lease

10. Property OverviewStarbucks Center Competitive Projects for Lease

11. Market Overview Industrial Market Analysis The close-in industrial market has experienced very flat demand for space over the last six months. We anticipate the market will stabilize in the first quarter of 2004. The current vacancy rate is 5.68%. This is the highest vacancy rate the close-in market has experienced since it was near 5% in the late 1980s. Accordingly, the market is giving steep discounts and has substantially increased lease incentives (i.e., free rent). Broker incentives have increased to full 5% fees on most leasing commissions, with some landlords offering bonus commissions in addition (i.e., trips, $0.50 per square foot of leased area). The Seattle close-in industrial market is typically considered to be the area north of the Kent Valley to downtown Seattle. The area is bound by I-5 to the east and West Marginal Way to the west. The industrial area follows the route of the Green River or Duwamish Waterway. This area has provided a level topography, which has been developed since the turn of the century. The close-in market is within the Seattle city limits with some portions located in unincorporated King County and the City of Tukwila. The market consists of 65,408,953 total square feet. Typical of this market are older facilities with high site coverage, low ceiling heights and challenged loading capabilities. The majority of tenancies are 10,000 to 20,000 square feet.

12. Market Overview Rental Rates The rate for the distribution space in the close-in market is trending toward $0.45 per square foot, NNN. Prices vary from this based on functionality, location and size. Most spaces over 30,000 square feet have had to offer rates in the $0.35 per square foot range. As tenants increase their size beyond 30,000 square feet, economies of scale come into play and tenants are easily swayed by the lower rates in the Kent Valley (i.e., $0.25 to $0.30 per square foot). Rate Recommendation We recommend marketing the space on the second and third floors at $0.25 per square foot, NNN.

13. Marketing Plan Phase I - Preparation Property Detail ReportOur first step in preparing to market a property is to complete a property detail report. We will tour the property and assemble information as required. This information includes floor plans, zoning and land use data, site maps, building specifications, operating systems information, structural reports and utility information. As this information is assembled, we work with our clients to identify unanswered questions which may be asked by prospective tenants. A strategy is then developed to deal with these issues in order to expedite interest in the property. Signage GVA Kidder Mathews will consult with the client and visit the property to determine the best location for sign placement. Signs are strategically placed to maximize exposure to oncoming traffic. Specific information can be placed on the sign to provide prospects with helpful information regarding square footage; however, generally sign copy should be simple to maximize the number of inquiries.

14. Marketing Plan Phase I - Preparation Photographs GVA Kidder Mathews will arrange to photograph the property to maximize prospect interest. In some cases, it may be necessary to have aerial photos prepared to show sites in perspective to their surroundings. We will coordinate with local photographers to arrange shots which create the best image possible. These pictures will then be inserted into the appropriate marketing materials. Maps & Demographics Comprehensive maps and demographic information are helpful to informed decision-making. GVA Kidder Mathews can prepare specific demographic reports and maps which include existing facility locations, employee zip codes, customer locations and proximity to key access routes. Additional information, such as income, age, population, or other key data requested by the client, can also be included. This capability is available on a local, regional, or national/international level.

15. Marketing Plan Phase I - Preparation Preparation of Marketing Materials Brochure Once the property detail report is completed and photos have been developed, a professional brochure can be printed, which includes key selling points of the property, a location map, photo of the site and contact information. Site/Floor Plans Floor plans and/or site plans will be assembled, utilizing architectural drawings provided by our clients or by taking measurements and preparing in-house graphic diagrams. These plans are prepared to give interested parties a clear overview of how a property can be utilized. Detail Summary Detailed information on the property is summarized on one page for a mass marketing campaign. Key information relating to square footage, site features, operating systems and pricing is discussed.

16. Marketing Plan Phase I - Preparation GVA Kidder Mathews Web Site Listing information will be posted to the GVA Kidder Mathews company web site at www.gvakm.com. Listings are updated monthly and are frequently visited by agents and brokers as well as potential tenants. GVA Kidder Mathews Featured PropertyListing information can be posted to the “featured properties” section of the company website at www.gvakm.com. Listings are rotated monthly and are frequently visited by agents and brokers, as well as potential tenants. CBA Multiple Listing Service Information will be submitted to the Commercial Brokers Association (CBA) for publication on their web site. In addition, listing information is made available through the CBA Advantage dial-up listings database. Market Reports GVA Kidder Mathews distributes semiannual reports on the Greater Seattle real estate market, received by more than 1,500 business and property owners. These reports, which are critical to underwriting, are designed to provide current information on the various real estate submarkets, as well as inform recipients of new listings and recent transactions. Currently, these reports cover the industrial, office, retail, apartment and investment specialties.

17. Marketing Plan Phase II - Execution Electronic Mail Within the first week of signing a Listing Agreement, GVA Kidder Mathews will send out an electronic brochure to a list of all active commercial real estate agents announcing the availability of the Starbucks Center to the market. Direct Mail Campaign GVA Kidder Mathews will implement a direct mail campaign designed to maximize exposure of the Starbucks Center and increase awareness of its availability. Specific groups will be targeted as follows: Active Target Prospects. GVA Kidder Mathews is constantly tracking prospects in the marketplace. When a new property is listed, the parameters of this property are cross-referenced with known requirements and a target list is developed. Information is then sent to those prospects and follow-up calls are made to generate interest. S.I.C. Users. For properties which require a specific use, a prospect list will be pulled from our computer database. These users can be identified locally, regionally or nationally based on Standard Industrial Classification (S.I.C.) code, as well as by number of employees or other specific parameters. Geographic/General Mailings.Mailings are sent out to prospects who are located in the immediate area around the subject property or who are known to have an interest in certain product types.

18. Marketing Plan Phase II - Execution Communication We will monitor all marketing activity and current status updates shall be communicated to the owner. Communication activity shall include: Cold Calling We will personally contact prospects who have been targeted for the site. These prospects will be contacted on a priority basis. Calls will be tracked via computer or a prospect log so that reports can be generated on an ongoing basis. • Verbal and e-mail status reports • Ongoing marketing activity letters • Copies of letters sent to inquiring brokers and prospects • Periodic meetings between clients and GVA Kidder Mathews agents to ensure open communication channels Tours & Coordination of Due Diligence We will arrange all property tours and coordinate due diligence with contractors, architects, space planners, engineers, lawyers, accountants, city planners, developers, financial analysts, environmental specialists and others necessary to assist in facilitating the transaction. Negotiating and Closing We will work diligently to generate Letters of Intent and offers on the property. These documents will be analyzed by the appropriate parties and their attorneys. We coordinate the negotiations in order to reach agreement on terms and conditions, and shall work to address appropriate issues necessary for closing.

19. Marketing Plan • Storage for • Museums • Theatres • Ballet/dance studios Proposed Users • Storage companies • Public warehouses • Garment manufacturing • Printing companies • Drapery manufacturing • Space specific / low visibilty users • High security • Regional companies

20. Extensive industrial experience Dominant market share Close-in market coverage Creative transaction structuring Integrity and credibility with brokerage community Extensive national coverage through GVAKM Ranked #1 Firm – Industrial Leasing Brokers GVA Kidder Mathews Team Why GVA Kidder Mathews?

21. Active Puget Sound Real Estate Firms(Current Listings According to CBA) Survey conducted via CBA 8/22/03 area 150, 155 properties for lease only

22. Listing Structure Lease We are proposing a fee of five (5) percent of the total lease consideration for the first five years of the lease, and two and one-half percent (2.5) percent for years 6 through 10. In the event that an agent other than the listing team is the procuring agent, we are proposing a fee of seven and one-half (7.5) percent of the first five years, and three and three-quarters (3.75) percent for years 6 through 10, in order to compensate the outside agent with a full fee (5% to outside agent, 2.5% to listing agent). No fee will be payable for lease terms in excess of 10 years. Listing Term GVA Kidder Mathews proposes a six-month listing term. Reporting Reporting will be handled on several fronts. GVA Kidder Mathews will maintain verbal communication with owner throughout the process. We will e-mail owner after each incoming contact on the building. At owner’s request we can have formal marketing meetings on a regular basis.