Highlights

• Extremely Low $1.04/SF/Month Rent; Other Comparable Tesco Leases are at $1.70/SF/Month or Higher
• Priced Below Replacement Cost
• New 15-Year Corporate NNN Lease with a Tenant Operated by One of the World's Largest International Retailers

• Fixed Rent Increases Every 5 Years Throughout the Original Term and All Six Option Periods
• Completely Renovated in 2007
• Excellent Location on a Busy, 12-Lane Intersection, 39,400 Vehicles Per Day Pass the Subject

Description

The subject property is a 15,440 square foot retail building built in 1990, recently renovated in 2007. Tesco Stores West, Inc. currently leases 14,000 square feet of the subject property under a 15-year NNN corporate lease that commenced in March of 2007. The lease includes six 5-year options to renew and fixed rent increases every 5 years throughout the original term and all six option periods. Battery Depot leases 1,440 square feet of the subject property under a new 5-year NNN lease with annual rent increases that will commence approximately June of 2008. Battery Depot is in possession of the premises and performing tenant improvement work.

Tesco Stores West Inc. is a wholly owned subsidiary of Tesco that operates more than 2,500 supermarkets, supercenters and convenience stores. Tesco, a UK-based company, is the largest British retailer by both global sales and domestic market share and one of the world's largest international retailers. Tesco has invested $2 billion over 5 years in Fresh & Easy. By the end of this year there are likely to be some 200 Fresh & Easy stores in California, with the company making a particularly energetic push in the Bay area.

The subject property is located within the recently renovated Red Mountain Plaza in Mesa, Arizona. Other notable tenants located within the plaza include Hollywood Video, Burger King, Family Dollar, and Checker Auto Parts. Red Mountain Plaza is located just off State Route 202 (aka Loop 202), which encompasses the eastern Phoenix metropolitan area and navigates and surrounds the cities of Tempe, Mesa, Chandler, and Gilbert, making it very vital to the area freeway system. The property has excellent visibility from State Route 202.

Mesa, AZ is one of the United States' fastest-growing cities, and currently ranks as the 38th-largest. Mesa is the most populous suburban city in the United States; in North America, only suburban Mississauga, Ontario is larger.

The subject property offers an investor the opportunity to purchase a newly renovated retail building leased to a wholly owned subsidiary of the world's third largest retailer in one of the United States' fastest growing cities. In addition, this asset is priced below replacement cost and is leased at a rental rate well below market which makes this a unique investment opportunity.