two-story oFFICE BUILDING111,957 sQUArE FEEt

phoENIx, Azmaricopa coUNTY • arizoNa

INvEstmENt oFFErING

wEstDUNLAp AvENUE2149

exclusive advisors market contact

CONFIDENTIALITY AND CONDITIONS

The material contained in this Offering Memorandum is confidential and for the purpose of considering the purchase of the Real Estate described herein. It is subject to the terms and provisions of the Confidentiality Agreement signed by the recipient of this material, and is not to be used for any purpose or made available to any other person without the express written consent of Cushman & Wakefield of Arizona, Inc. (“Broker”).

This Offering Memorandum was prepared in May, 2011, by Broker solely for the use of prospective purchasers of 2149 W. Dunlap Avenue, located in Phoenix, Arizona (the “Real Estate”). Neither Broker, Owner nor any of their respective officers, employees or agents, make any representation or warranty, express or implied, as to the completeness or the accuracy of the material contained in the Offering Memorandum or any of its contents, and no legal commitments or obligations shall arise by reason of this package or any of its contents. Owner reserves the right to eliminate any portion or all of the Real Estate from any offer for sale at any time prior to the completion of a binding contract of sale executed by both Owner and a prospective purchaser.

Prospective purchasers of the Real Estate are advised (i) that changes may have occurred in the condition of the Real Estate since the time of this Offering Memorandum or the financial statements therein were prepared and that (ii) all financial projections are provided for general reference purposes only in that they are based on assumptions relating to the general economy, competition, and other factors beyond the control of Broker and the Owner and, therefore, are subject to material variation. Prospective purchasers of the Real Estate are advised and encouraged to conduct their own comprehensive review and analysis of the Real Estate.

The Offering Memorandum is a solicitation of interest only and is not an offer to sell the Real Estate. The Owner and Broker expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Real Estate, and expressly reserve the right, at their sole discretion, to terminate discussions with any entity at any time with or without notice. The Owner shall have no legal commitment or obligations to any entity reviewing the Offering Memorandum or making an offer to purchase the Real Estate unless and until a written agreement satisfactory to the Owner has been fully executed, delivered, and approved by the Owner and any conditions to the Owner thereunder have been satisfied or waived.

This Offering Memorandum is confidential. By accepting the Offering Memorandum, you agree (i) that you hold and treat the Offering Memorandum and its contents in the strictest confidence, (ii) that you will not photocopy or duplicate any part of the Offering Memorandum, (iii) that you will not disclose the Offering Memorandum or any of its contents to any other entity without the prior written authorization of Broker, and (iv) that you will not use the Offering Memorandum in any fashion or manner detrimental to the interest of the Owner or Broker.

cushman & Wakefield of arizona, inc.2555 East Camelback Road, Suite 300

Phoenix, Arizona 85016

Jeffrey colejeff.cole@cushwake.com949.955.7652

chris tocichristopher.e.toci@cushwake.com

602.229.5951

ed Hernandezed.hernandez@cushwake.com949.930.4380

mike sayre mike.sayre@cushwake.com602.229.5947

marc renardmarc.renard@cushwake.com

213.955.6413

DeVry Campus | phoenix • arizona

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total Building area ................................................................ 111,957 SFland area ................................................................................. 14.9 acresyear Built ...........................................................................................1983parking ratio ....................................................................... 9.8/1,000 SF% leased ..........................................................................................100%tenant .........................................................DeVry University (NYSE:DV)tenant annual revenue .............................................................$2 Billion

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offering summaryConstructed in 1983, 2149 West dunlap avenue is a two-story suburban office building located in the Metrocenter submarket situated on a 14.9 acre site. devry university (NYSE: DV) occupies the entire 111,957-square-foot building through September 2017.

With a long-term lease to a national and financially stable tenant, the asset represents an attractive investment for investors seeking stable cash-flow.

property

n institutional-Quality asset: Built in 1983, the Property is an institutional-grade suburban office asset that features superior construction, a quality, high-profile image in an excellent location with a strong user in a proven submarket.

n over-standard parking: 2149 West Dunlap Avenue provides surface parking at a ratio of 9.8 spaces per 1,000 rentable square feet.

n site access: The asset is located at Dunlap Avenue (a major local arterial road) and 22nd Avenue, one-half mile east of the Black Canyon Highway (Interstate-17). There are five points of ingress and egress to the property via Dunlap Avenue, 22nd Avenue, and Alice Avenue.

n Divisibility: The building has a central atrium area that divides each floor into two wings that would facilitate divisibility to accommodate multiple office tenants in the future, if necessary.

location

n prominent location: By virtue of its proximity to the Interstate 17 and Loop 101 freeways, the Property has unparalleled access to northwest and northeast housing and labor markets. Freeways, housing, and labor accessibility have caused more Fortune 500 companies to select the Metrocenter submarket over any other submarket in Phoenix.

n numerous amenities: Nearby is the 1.4 million square foot Metrocenter Mall – Phoenix’s oldest regional mall – the Sheraton Crescent Hotel, and numerous restaurants and hotels. Metrocenter Mall features four department stores (Dillard’s, Robinsons-May, Sears, and JCPenney), a 12-screen Harkins Theatre, numerous sit-down restaurants, a food court, and more than 160 specialty retailers. Adjacent to the property is the Village Centre, home to Domino’s Pizza, Subway, Kyoto Bowl and Enterprise Rent-A-Car.

n Diversified local economy: Over the years, Metropolitan Phoenix has become much more diversified with expanding industries such as telecommunications and aerospace, currently the 10th largest market nationally. Arizona is home to seven Fortune 500 corporations and universities such as Arizona State University and University of Phoenix have enhanced the area’s human capital resources with skilled labor.

n Housing: Approximately 30% of the single-family housing inventory in Metropolitan Phoenix is adjacent to the Metrocenter submarket. An estimated 170,000 households are within a 5-mile radius of the DeVry University building.

market

n local Business Demand Drivers: The Metrocenter submarket is a major growth center for education, office and technology users. Corporate neighbors include: Blue Cross/Blue Shield, Cognizant Technology Solutions, Wells Fargo, Southwest Gas, Safeway, Aetna, Hypercom, Tri West Healthcare, Cox Communications, PetsMart, Discover Card, Best Western, Traveler’s Insurance, Colonial Penn Insurance, and Waste Management. In addition to DeVry, the area is home to key education facilities of Arts Institute, Argosy University, Ottawa University and University of Phoenix.

n Current market Conditions: The local office market has historically been one of the strongest in the Greater Phoenix area. However, like much of Phoenix, the area has suffered from the recession and direct vacancy has risen to 25.6%. Market fundamentals are improving in 2011 as tenant activity has increased. Direct net absorption on a trailing twelve month (TTM) basis is over 306,000 square feet.

n rental rate growth: Although down from the high of $19.93 per square foot (psf) in 2007, the Metrocenter Class B office market asking rental rates have stabilized in the low-to-mid $17.00 psf range since the end of 2009. Rates have returned to early 2000 levels and currently stand at $17.07 psf as of the first quarter 2011.

Financial HiGHliGHts

n stable Credit Tenant Cash flow: With nearly $2 billion in annual revenue, a market capitalization of $3.5 billion, and a debt-free balance sheet, DeVry University offers a stable, credit cash flow investment.

n DeVry Tenant profile: DeVry has occupied the building since construction in 1983 and will likely renew beyond their current lease term. The building houses their educational campus for the following schools: DeVry University, Keller Graduate School of Management, Chamberlain College of Nursing, and Carrington College. DeVry was established in 1931.

n Below replacement Cost: The property is expected to sell at a value below the total replacement cost including land estimated at approximately $225 per square foot.

investment summary

year 1 net operating income ................................................................................... $1,461,947 year 2 net operating income ................................................................................... $1,488,329

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address: 2149 West Dunlap Avenue phoenix, az 85021

year Built: 1983

rentable area: 111,957

Building parcels: 14.85 acres for building site

parcel number: 158-05-029

parking: The property provides surface parking at a ratio of 9.8 spaces per 1,000 square feet of rentable area, or approximately 1,092 parking spaces.

structure: The property consists of a two-story office building located on the south side of West Dunlap Avenue. The construction is of Type I and is fully protected by an automatic sprinkler system.

exterior Walls & interior Finishes/Windows:Exterior Walls: EIFS walls over metal studsWindows: Solar glass in factory finished aluminum mullions Floors: Combination of commercial-grade carpet and vinyl tile in the office areas

and ceramic tile flooring in the common areas Interior Walls: Painted gypsum boardCeilings: Suspended 2 x 4 acoustic tiles; 9 foot dropped ceiling; 13-14 feet deck to

deck.Lighting: Fluorescent lights

roofs: Roofing consists of single-ply 45 mil EDPM roof membrane that is turned up on the inside of parapet walls and terminates in a “z” flashing. The tops of the parapet walls are EIFS that have shrinking sealants at the joints. Drainage is accomplished by sloping the roof to interior doors drains with adjacent overflows.

Heating & air conditioning: Built-up system consisting of two 230-ton Dunnham-Busch reciprocating chillers, two BAC 235-ton cooling towers, pumps three Mammoth rooftop air-handler units with ducting to variable air volume (VAV) boxes and diffusers for distribution. Heating from perimeter reheat at VAV boxes. Total cooling capacity for the building is 460-tons or 1-ton of air conditioning for every 260 square feet.

plumbing system: Domestic water and sanitary sewer systems are provided to the building by the City of Phoenix. The domestic water service supplies restrooms, water heaters, and specific tenant needs. The plumbing system utilizes copper piping and brass valves. Hot water service is provided by a 50-gallon electric water heater with a circulating pump.

elevator system: The building has one hydraulic-powered passenger elevator with 4,000 lbs. capacity manufactured by Dover. The interior is finished with plastic laminate and stainless steel wall panels, as well as a rubberized floor.

power: 3,000 Amps, 277/480 Volt Electric Service

Fire protection: The monitored fire protection systems consist of an automatic sprinkler system, hand-held fire extinguishers, pull stations, illuminated exit signs, smoke detectors, and horns and strobes. Basis of design is between .10 - .15 GPM per 1500 square feet (“Light Hazard Area”). The system is serviced by an incoming 6-inch riser that splits into two 6-inch risers. Fire hydrants are located on-site and at the adjacent streets.

landscaping: Landscaping consists of mature trees and shrubbery located around the buildings perimeters, in planting islands located in the parking areas and perimeters. Lawn areas are provided along the perimeter of the building.

security: The tenant has installed security systems in accordance to their needs.

utilities: Electricity: Salt River Project Gas: None Water: City of Phoenix Sewer: City of Phoenix Police: Phoenix Police Department Fire Dept.: Phoenix Fire Department

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greaTer pHoenix oVerViewExceptional lifestyle and career opportunities have made metropolitan Phoenix one of the most attractive areas in the country. Now the fifth largest city and 12th largest metropolitan area in the United States, Phoenix has undergone a fundamental change as a result of significant technological advances. The area has grown from a humble western community to a highly developed and diverse community that is home to nearly 4.6 million residents. Metropolitan Phoenix currently accounts for nearly two-thirds of Arizona’s population. In 2009, for the fifth time, Phoenix was named an “All-America City” by the National Civic League.

Sunshine, blue skies, temperate weather, and an environment free from natural disasters have all contributed to the exceptional quality of life that Phoenicians have come to enjoy. As a consequence, Metropolitan Phoenix has historically enjoyed some of the most prolific employment and population growth trends in the nation over the past decade. In fact, historically, Metropolitan Phoenix employment growth has averaged three to four times that of the nation.

As its namesake implies, Phoenix continually rises and falls with a grace that few metropolitan areas enjoy. Though its cyclical peaks and troughs are higher and lower than most other cities, it is never a good idea to bet against the Valley of the Sun.

On the heels of 230,000 consecutive job losses in 2008 and 2009, Phoenix is once again demonstrating its resilience. In 2010, with 28,800 jobs ADDED, Phoenix was among the top four private sector job growth generators (before seasonal adjustments) behind Washington DC, Dallas/Fort Worth, and Boston according to a February 2, 2011 report from the Associated Press. Trailing twelve month employment growth is up 11,000 jobs through April 2011 showing very strong signs of stabilization in the Metro Phoenix Area.

The Phoenix area provides employers with a young and well-educated labor force. As the area has grown, greater Phoenix has matured to include a diverse range of industries including high-tech manufacturing, information services, and many regional and corporate headquarters. With a dynamic work force, solid infrastructure, and high quality of life, Phoenix will continue to provide one of the most attractive business climates in the nation. There are many factors that attract businesses to Metropolitan Phoenix including:

• a young, well-educated, and highly productive work force • competitively priced residential, commercial, and industrial real estate • modern transportation infrastructure and state-of-the-art telecommunications • abundant water and power resources • attractive quality of life and moderate climate • affordable cost of living

stronG population GroWtHThe Metropolitan Phoenix area offers businesses the opportunity to capitalize on the exceptional growth that is occurring in the southwestern United States. The population in Metropolitan Phoenix has increased by 33.1% since 2000, nearly four times the U.S. increase of only 8.8%. Moody’s|Economy.com projects the population in Metropolitan Phoenix to continue to increase at a rate averaging 2.6% per year over the next 10 years. This kind of growth would add approximately 1.2 million people to a current population of 4.6 million residents. Metropolitan Phoenix population is projected to grow at more than twice the national rate for the next two decades.

metro phoenix population Growth 2013 Forecast

0

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011F 2012F 2013F

Annual Growth - 111.6 108.0 110.8 103.8 100.3 109.7 108.5 103.2 123.2 161.2 161.9 129.0 111.7 76.77 83.44 130.2 136.4 120.7Population 2,744 2,855 2,963 3,074 3,178 3,278 3,388 3,496 3,600 3,723 3,884 4,046 4,175 4,287 4,364 4,447 4,577 4,714 4,834

2,500

3,000

3,500

4,000

4,500

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5,500

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Metropolitan Phoenix Population Growth 1995 – 2013 Forecast

+4% +4% +4%

+3% +3%

+3% +3%

+3% +3%

+4% +4%

+3% +3% +2% +2%

+3% +3%

+3%

Source: Moody s | Economy.com

consistent employment GroWtHFrom 2002 through 2007 Metropolitan Phoenix created more jobs over that five-year span than any metro area in the United States. Since 2002, the area expanded its employment base by 23.4%; almost quadruple the national rate. Even though it was not considered among the top ten most densely populated areas during that period, Phoenix topped the nation with 325,100 new private-sector jobs, the most of any other metropolitan area. The unemployment rate in Metropolitan Phoenix is consistently lower than the national average and, as of April 2011, the metro area unemployment rate of 8.1% is 90 basis points lower than the national average of 9.0%.

From 2002 through 2007 Metropolitan Phoenix created more jobs than any metro area in the United States. During that five year span, the area expanded its employment base by 23.4%; almost quadruple the national growth rate. Even though Metro Phoenix was not with the top ten most densely populated areas during that time, Phoenix topped the nation with 325,100 new private-sector jobs, leading all other metropolitan areas. The unemployment rate in Metropolitan Phoenix is consistently lower than the national average and, as of April 2011, the metro are unemployment rate of 8.1% is 0.90 basis points lower that the national average of 9.0%

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annual change 1975-2010 (in thousands) with national recessions

1

-16.5

20.7

38.6

69.7

51.2

12.411.2

-2.2

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25.336.5

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50

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75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10

Source: Arizona Department of Commerce.

In Thousands

Metropolitan Phoenix Annual Change 1975 – December 2010 with National Recessions

Explosive employment growth, at times, leads to a certain element of volatility. Not unlike the job losses experienced at the national level, Metropolitan Phoenix experienced its first bout of measurable job losses in 2008 and again in 2009. Not since the last recession in 2001 has Phoenix experienced any form of job losses. Since nearly 50% of its allocated job base is tied to Finance, Insurance, and Real Estate (FIRE), Business and Professional Services; Education and Health Services, and Government, the job recovery in Metropolitan Phoenix is expected to trend closely with the recovery across the United States. With the housing market recovery under way in Phoenix, ahead of the U.S. as a whole, affordable home prices will continue to drive the economic recovery which has, in turn, contributed to 28,800 new jobs in 2010.

employment Base diversityOriginally known for its five Cs (cotton, cattle, copper, climate, and citrus), Phoenix features a diverse job growth engine with multiple demand drivers including the sectors of high-tech manufacturing, information services, and trade and tourism. Nearly half of the city’s employment base is anchored by financial activities, professional and business services, education and health services and government which fuel absorption of retail, office, and industrial space.

metro phoenix area employmenttotal nonfarm Jobs: 1,741,700 (december 2010)

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Manufacturing 6.3% Natural Resources

& Mining 0.2%

Construction 5.4%

Trade, Transportation &

Utilities 21.1%

Information 1.5%

Financial Activities 7.8%

Professional & Business Svcs

16.3%

Educational & Health Svcs 13.8%

Leisure & Hospitality 10.0%

Other Services 3.9%

Government 13.8%

Metropolitan Phoenix Area Employment – Total Non-Farm Jobs: 1,741,700 (December 2010)

Federal State (incl Education) Local

Durable Goods Non-Durable Goods

Buildings Heavy Specialty Trades

Retail and Wholesale Trade Transportation Warehousing Utilities

Publishing Telecommunications

Finance Insurance Real Estate

Professional, Scientific and Technical

Educational Svcs Health Care Svcs Social Assistance

Arts, Entertainment and Recreation Accommodation Food Services

Employment growth in 2010 was reported in seven of the 11 sectors, led by Trade, Transportation and Utilities. Positive job growth is expected in education and healthcare services, professional and business services, leisure and hospitality, and FIRE (finance, insurance and real estate) sectors. Growth in these sectors will be the catalyst for future absorption. Any recovery in construction, which currently accounts at 5% of our 1.7 million employment base, will be dependent upon future housing starts. Demand for future commercial construction (office, industrial, and retail development) will be muted for several years as the markets digest existing supply levels.

HousinG aFFordaBilityThe median home price in Phoenix increased 92% between June 2002 ($138,000) and June 2006 ($265,000). During the period from mid-2005 through fourth quarter 2007, Metropolitan Phoenix became relatively unaffordable. However, distressed sales, which began in earnest by mid-year 2008, ultimately resulted in peak-to-trough price declines of over 50%. The bottom in the entry-level housing market occurred in April/May 2009 with a median home price of $124,000. Median home prices accelerated in the second quarter 2010 with the Federal Home Buyer Tax Credit, but the momentum was not sustained. As of fourth quarter 2010, the median home price was $140,000. As illustrated, the housing affordability for Greater Phoenix is the highest it has been in at least 15 years.

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greaTer pHoenix oVerViewmetro phoenix Housing affordabilitypct. of Families that can afford the median priced Home

3

25%

35%

45%

55%

65%

75%

85%

95%

4Q95 4Q96 4Q97 4Q98 4Q99 4Q00 4Q01 4Q02 4Q03 4Q04 4Q05 4Q06 4Q07 4Q08 4Q09 4Q10

Source: Arizona Real Estate Center

Metropolitan Phoenix ● Housing Affordability

Pct. Of Families That Can Afford the Median Priced Home

88.5%

35.5%

50% - the Median Income can afford the Median priced home

Housing affordability will continue to be the catalyst for future population and employment growth as Metropolitan Phoenix consistently attracts employers from California and the Midwest.

diverse transportation linkaGesFreewaysSignificant investment in the urban freeway system across Metropolitan Phoenix over the past fifteen years was made to accommodate its rapid growth. In 1985, voters approved a one-half cent transportation excise tax for construction of controlled-access highways. The majority of the 138 miles of urban freeways have been built from these proceeds. Because of these interstate highway improvements, Phoenix is ideally located for distribution of goods to southwestern markets including those in California and Mexico.

The major components of the freeway system include Interstate 10, the southernmost east-west, coast-to-coast, interstate highway in the United States. It stretches from Los Angeles, through Phoenix, to Houston, New Orleans and Jacksonville, Florida. Interstate 17 connects Phoenix with Flagstaff, Arizona, providing linkage to Interstate 40. Within Metropolitan Phoenix, Loop 101 encircles most of the metropolitan area and Loop 202 provides access around the perimeter of the southeast part of the metropolitan area. In addition, the Piestewa Freeway (SR 51) connects I-10 through downtown Phoenix to the northern sector of the metro area and Loop 101.

airportsAccording to Airports Council International, Metropolitan Phoenix is home to the 10th busiest airport for the number of takeoffs/landings (operations) and 9th busiest in terms of passenger traffic. The airport is one of the ten busiest airports in the world with a $90 million daily economic impact. On a daily basis, the airport handles nearly 1,500 aircraft takeoffs/landings along with more than 100,000 passengers and more than 600 tons of cargo. US Airways maintains its headquarters in Phoenix and Sky Harbor Airport is a hub for US Airways and Great Lakes Airlines. It is also the third-largest hub for Southwest Airlines. Sky Harbor International Airport serves its passengers through three terminals and more than 120 gates. US Airways and Southwest Airlines currently share Sky Harbor’s Terminal 4, which handles about 75% of the traffic through the airport. In total, 25 airlines provide nonstop service from Phoenix to 85 cities in the United States and 19 international destinations across Canada, Mexico, and Europe with more than 160 international flights departing from Phoenix daily.

sky Harbor international airport (pHx)Sky Harbor has received federal approval for its Airport Enhancement Program. The Airport Enhancement Program is a $2 billion-plus expansion that will include the following projects:• a new 33-gate West Terminal;• Stage 2 of the automated people Mover (Stage 1 has been previously approved);• realignment of Sky harbor Boulevard. west of Terminal 3 and two new taxiways and,• The final concourse addition to Terminal 4, making Terminal 4 an 8-concourse Terminal

deer valley airport (kdvt)The Deer Valley Airport provides services for corporate and general aviation aircraft. The airport is a key attraction for businesses moving into the area. For example, USAA has several corporate jets that it uses to fly executives in and out of the area, and the proximity of the Deer Valley Airport was of primary consideration in their decision to locate to the Deer Valley submarket.

Even as a general aviation reliever airport to Phoenix Sky Harbor International Airport, Deer Valley is the 15th busiest airport in the United States for operations. Deer Valley Airport is home to more than 1,350 aircraft and two general utility runways, 4,500 and 8,000 feet long with a system of parallel and exit taxiways. There is no scheduled airline service but charter service is available. Two large flight training academies, Westwind School of Aeronautics and TransPac Aviation Academy, are located at Deer Valley. These two schools account for a majority of operations at the airport. The airfield will accommodate up to a Gulfstream V business jet.

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light rail transit (lrt)Metropolitan Phoenix completed the initial phase of its own mass transit system on December 27, 2008. Known as METRO Light Rail Transit (LRT), trains operate on city streets in a “center reservation,” similar to the Red Line in Houston, the surface sections of the Green Line in Boston, and some surface sections of the Muni Metro in San Francisco. Some parts of the line, such as the bridge over Tempe Town Lake (near State Route 202) have no contact with vehicle traffic.

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METRO Light Rail Transit connects the cities of Phoenix, Tempe, and Mesa within the metropolitan area. There are 28 stations on the initial 20.3-mile starter segment. Christown Spectrum Mall at 19th Avenue and Bethany Home Road anchors the north end of the line and Main at Sycamore in Mesa anchors the east end. The LRT traverses the CBD along Central Avenue to Washington Street, extends eastward along an alignment north of Sky Harbor International Airport and continues through downtown Tempe then into Mesa.

Each METRO vehicle can seat 66 passengers and comfortably accommodate 175 people with a maximum capacity of 226. The light rail system can accommodate up to 12,000 passengers per hour, the same as a six-lane freeway. For 2009, the first full year of operation, ridership exceeded 5.5 million passengers on the LRT. The METRO Light Rail Transit was one of the largest construction projects ever undertaken in Phoenix and involved coordination of more than a dozen prime construction contractors.

superior Quality oF livinGGreater Phoenix has long been described as one of the best places to live. Quality of life remains an important consideration in site selection as business leaders determine if they can attract employees to the area. The extraordinary quality of life offered in Greater Phoenix has allowed many business leaders relocating to the area to be successful in attracting employees. Phoenix offers a lower cost of living than other metro areas of its size, along with high-quality secondary education and a warm, moderate climate that has historically attracted between 80,000 and 100,000 new residents per year, even in a downturn.

Greater phoenix also offers residents a wide variety of recreational and cultural activities: Every January, Phoenix plays host to the Waste Management Phoenix Open PGA Tournament, a.k.a. “The Greatest Show on Grass”. The event draws crowds averaging 500,000 for the weekend.

The state-of-the-art 17,500-seat Jobing.com arena is home to the Phoenix Coyotes of the National Hockey League (NHL). Located in Glendale at Loop 101 Freeway and Glendale Avenue, the venue was completed in 2003 at a cost $180 million.

The Arizona Diamondbacks play in the chase Field (formerly Bank One Ballpark), which opened in April 1998. Arizona won the World Series in 2001 and has four division titles since becoming a franchise in 1998.

The us airways center (formerly America West Arena) is the home of the NBA Phoenix Suns and the WNBA Phoenix Mercury. The 1995 and 2009 NBA All-Star Games were played at US Airways Center.

university of phoenix stadium, located adjacent to Jobing.com Arena, is home to the Arizona Cardinals Football Team (NFL) and the annual Fiesta Bowl (NCAA). The multi-purpose facility hosted Super Bowl XLII in 2008 and hosted the 2007 and 2011 NCAA BCS National Championship Games

sun devil stadium is located on the campus of Arizona State University in Tempe. The stadium hosts the Insight.com Bowl (NCAA) and was previously the home of the Arizona Cardinals (NFL) and the Fiesta Bowl (NCAA). The 73,379-seat facility hosted Super Bowl XXX in 1996 and has been the venue for several concerts, movies and a visit by Pope John Paul II (1987) and President Obama (2009).

Wells Fargo arena is a 10,754-seat multi-purpose arena located on the campus of Arizona State University in Tempe. The arena serves as the home to multiple ASU athletics teams including men’s and women’s basketball as well as volleyball, gymnastics and wrestling. The facility also plays host to graduation ceremonies and a variety of concerts and shows.

phoenix international raceway, a one-mile, tri-oval racetrack that is home to two annual NASCAR race weekends. The track is both the first and last stop on the West Coast, as well as the second and second-to-last track on the schedule. The grandstand seats approximately 67,000 people and the typical weekend of activities draw more than 200,000 fans.

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14

pHoenix offiCe markeT oVerView

The Phoenix office base contains 76.8 million square feet across 22 submarkets. Class “A” space represents 37.2% or 28.5 million square feet (msf) and Class “B” space accounts for 36.9 msf or 48.1% of the market. Prolific population and employment growth from 2003 through 2007 in the Phoenix metropolitan area fueled strong absorption, low vacancy and rising asking rates causing office development to accelerate. The Phoenix office market absorbed a total of 10.5 million square feet or 2.1 million square feet annually during this five-year period. Not surprisingly, Class “A” office space accounted for nearly 80% of the absorption during this period. As a result, the direct vacancy rate declined to 13.8% in 2007 from a high of 19.6% in 2002. Since the start of 2007, the market took delivery of 12.5 million square feet. However, compared to the previous 1997 to 2002 development cycle which accepted 17.2 million square feet of new space, the current cycle deliveries are muted and will result in a quicker recovery. Coupled with the downturn of the economy, Phoenix experienced negative absorption in 2008 and 2009. However, a strong fourth quarter 2010 of nearly 700,000 sf of absorption positioned the market to end the year with 216,411 sf of positive overall absorption. The strong rebound in absorption for 2010 marks the first positive absorption since 2008 and was instrumental in reducing direct vacancy levels to 25%.

A review of the trailing four-quarter absorption reveals that the market has rebounded. From a low in negative absorption of 1.57 msf in second quarter 2009, the market has steadily improved, moving into positive territory the past two periods.

trailing Four-Quarter office absorption vs. asking rates1Q’04 to 1Q’11

0

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

-­‐2,500,000

-­‐2,000,000

-­‐1,500,000

-­‐1,000,000

-­‐500,000

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

Direct  Net  Absorption   Overall  Absorpton   Asking  Rates

Metropolitan Phoenix Trailing Four-Quarter Office Absorption vs. Asking Rates – 1Q’04 to 1Q’11

Source: Cushman & Wakefield Research

High vacancy rates and the lack of construction financing will curtail any new development in the coming years and will help to strengthen market fundamentals. As the Phoenix area continues to add jobs, absorption will occur and vacancy rates will decline. Weighted average Class “B” asking rents dipped in the first quarter, ending at $20.20 per square foot (psf) from $20.42 psf as of year-end 2010. However, as illustrated from the Absorption versus Market Rate chart rents lag cyclical peaks and troughs in Phoenix by about 24 months. As such, office rents in Metropolitan Phoenix should be finding bottom by mid-year 2011 if history is any indication.

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pHoenix meTro markeT oVerView

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class “B” Historical asking rents vs. vacancy rates

1

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 1Q11

Incr.Growth -$2.13 -$0.61 $0.14 $0.84 $0.52 $1.56 $1.28 $1.68 -$0.11 $0.74 $0.28 -$0.76 -$0.67 -$0.21 $1.22 $3.50 $1.75 -$0.47 -$2.17 -$0.53 -$0.22

Asking Rents $14.57 $12.44 $11.83 $11.83 $11.97 $12.81 $13.33 $14.89 $16.17 $17.74 $17.74 $18.48 $18.00 $17.33 $17.12 $17.12 $18.34 $21.84 $23.12 $20.95 $20.42 $20.20

Class B Vacancy 24.8% 24.9% 26.3% 19.1% 14.2% 12.0% 12.5% 10.5% 9.1% 11.4% 11.9% 17.1% 19.3% 19.8% 21.2% 16.9% 12.9% 14.1% 16.5% 23.5% 25.4% 26.1%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

Metropolitan Phoenix Class “B” Historical Office Asking Rents vs. Vacancy Rates

-15% -5% +1% +7% +4%

+12% +9%

+10% -1% +4% +2%

-4% -4% -1% +7%

+19% +8% -2%

-9% -3% -1%

After a rental rate “bottom” is established, the years immediately following the trough enjoy 5% to 6% annual rent growth. As job growth continues to accelerate, aggressive rent increases are typical in the third, fourth, and fifth years following the bottom. As illustrated, this annual rent growth is documented to be in the double-digit range, comfortably reaching 10% to 12% thresholds with extremes pushing close to 20% (2006).

metrocenter oFFice suBmarketThe Metrocenter submarket distinguishes itself from other submarkets by virtue of its tremendous access to labor. Located along the Black Canyon Freeway corridor, this submarket enjoys immediate access to a vast northwest labor pool unequalled in other parts of the Valley. More Fortune 500 companies reside in the Metrocenter submarket than any other submarket in Phoenix. Corporate residents include: Blue Cross/Blue Shield, Cognizant Technology Solutions, Wells Fargo, Southwest Gas, Safeway, Aetna, Hypercom, Tri West Healthcare, Cox Communications, PetsMart, Discover Card, Best Western, Traveler’s Insurance, Colonial Penn Insurance, and Waste Management. In addition to DeVry, the area is home to key education facilities of Arts Institute, Argosy University, Ottawa University and University of Phoenix.

inventoryThe Metrocenter office submarket accounts for 3.8 million square feet, or 5.0% of the metropolitan total office inventory. Of the total Metrocenter inventory, approximately 53% consists of Class B space.

current market conditions The local office market has historically been one of the strongest in the Greater Phoenix area. However, like much of Phoenix, the area has suffered from the recession and direct vacancy has risen to 28.2%. Market fundamentals are expected to improve in 2011 as tenant activity increased in the third and fourth quarters of 2010 resulting in nearly 20,000 square feet of positive net absorption in 1Q11.

rental rate GroWtHAlthough down from the high of $19.93 per square foot (psf) in 2007, the Class B office market asking rental rates have stabilized in the low-to-mid $17.00 psf range since the end of 2009. Rates have returned to early 2000 levels and currently stand at $17.07 psf as of the first quarter 2011.

neW development/trends/construction pipelineWith continued leasing activity and stabilized vacancy levels, building owners will continue to benefit as there are no new construction deliveries slated for the near-term.

CourTyarD area

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lease summary

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lessee: DeVry Inc., a Delaware corporation

Building: 2194 W. Dunlap Avenue phoenix, az 85021

rentable sF: 111,957 (100% of building)

lease signed date: September 13, 2007 (initial lease) April 9, 2008 (first amendment) August 14, 2009 (second amendment)

commencement date: September 13, 2007 (initial lease) August 1, 2008 (first amendment) November 1, 2009 (second amendment)

lease expiration: September 30, 2017 (10 years) monthly Base rent: (a) Initial Space & First Amendment Expansion Space (76,067

SF) Per the schedule below on a “NNN” basis.

months dates monthly rent per sF annual rent per sF1-10 9/13/07 – 7/31/08 $68,983.00 $1.00 $827,796.00 $12.0011-12 8/1/08 – 9/30/08 $76,953.00 $1.01 $769,530.00 $12.1213-24 10/1/08 – 9/30/09 $78,332.66 $1.03 $939,991.92 $12.3625-36 10/1/09 – 9/30/10 $79,979.91 $1.05 $959,758.92 $12.62 37-48 10/1/10 – 9/30/11 $81,660.31 $1.07 $979,923.72 $12.88 49-60 10/1/11 – 9/30/12 $83,379.42 $1.10 $1,000,553.04 $13.15 61-72 10/1/12 – 9/30/13 $85,132.81 $1.12 $1,021,593.72 $13.43 73-84 10/1/13 – 9/30/14 $86,926.06 $1.14 $1,043,112.72 $13.71 85-96 10/1/14 – 9/30/15 $88,754.78 $1.17 $1,065,057.36 $14.00 97-108 10/1/15 – 9/30/16 $90,624.58 $1.19 $1,087,494.96 $14.30 109-120 10/1/16 – 9/30/17 $92,541.07 $1.22 $1,110,492.84 $14.60

Second Amendment Expansion Space (35,890 SF) Per the schedule below, expense recoveries are included in Base Rent on a $8/RSF per year basis.

months dates monthly rent per sF annual rent per sF1-11 11/1/09-9/30/10 $59,816.67 $1.67 $717,800.04 $20.00 12-23 10/1/10-9/30/11 $60,893.37 $1.70 $730,720.44 $20.36 24-35 10/1/11-9/30/12 $62,002.37 $1.73 $744,028.44 $20.73 36-47 10/1/12-9/30/13 $63,144.64 $1.76 $757,735.68 $21.11 48-59 10/1/13-9/30/14 $64,321.18 $1.79 $771,854.16 $21.51 60-71 10/1/14-9/30/15 $65,533.02 $1.83 $786,396.24 $21.91 72-83 10/1/15-9/30/16 $66,781.21 $1.86 $801,374.52 $22.33 84-95 10/1/16-9/30/17 $68,066.84 $1.90 $816,802.08 $22.76

options to extend: Lessee has the option to extend the lease term for two (2) additional five (5) year periods. Base rent shall be the greater of (i) 100% of fair market value or (ii) Base Rent applicable to the last year of the previous lease term. Lessee must give written notice at least nine (9) months prior to the expiration of the current lease term.

operating expenses/taxes: (a) NNN (initial and first amendment expansion space) (b) None; included in base rent (third amendment expansion

space)

parking: Lessee shall be entitled to 842 parking stalls.

security deposit: None

maJor TenanT profile

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DeVry university, inc.

square Feet: 111,957 SF% of Building: 100%in place rent ($/sF/yr): $20.72lease expiration: September 30, 2017employees: 10,009annual revenue: $1.915 Billion (2010)Website: www.devryinc.comticker symbol: DV (NYSE)

sector: Servicesindustry: School

market capitalization: $3.46 BillionGross profit: $1.089 Billionnet income: $279.91 Milliontotal cash: $307.70 Milliontotal debt: $0operating cash Flow: $391.55 Millionlevered Free cash Flow: $227.5 Million Established in 1931, DeVry Inc. is a provider of educational services and the parent organization of Advanced Academics, Becker Professional Education, Carrington College and Carrington College California, Chamberlain College of Nursing, DeVry Brasil, DeVry University, and Ross University. These institutions offer a range of programs in business, healthcare and technology and serve students in middle school through postsecondary education, as well as accounting and finance professionals.

DeVry University provides bachelor’s and master’s degree programs in technology; science, business and the arts. DeVry University is a private, degree-granting, regionally accredited, higher education institution in North America. Undergraduate and graduate degree programs are offered in the United States, Canada and online. Graduate degree programs in management are offered through DeVry University’s Keller Graduate School of Management. DeVry University comprises DeVry’s Business, Technology and Management segment. In July 2009, DeVry University began offering a Bachelor of Science degree in Multimedia Design & Development within its College of Media Arts & Technology.

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CasH flow assumpTions

rentable square Feet 111,957

cash Flow commencement date October 1, 2011

length of analysis 11 Years

vacancy/credit loss 5%

market rent - nnn (Per Sq.Ft. Per Year) $12.00

rent Growth Y2-3 (3%), Y4-5 (5%), Y6-7(7%), Y8-11 (4%)

lease term 5 years

rent escalations 2.0% annual increases

expense Growth rate - annual 3.0%

management Fee 2.0%

downtime on rollover 12 Months

retention ratio 75%

tenant improvements (psF) New Tenant $25.00 Renewal Tenant $10.00

commissions (% of aggregate rent) New Lease 7.5% Renewal Lease 5.0%

capital reserves (psF) $0.20 psf per year plus inflation

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CasH flow sTaTemenT

10-year holding period beginning 10/01/2011 Est. In-Place 1 2 3 4 5 6 7 8 9 10 11Fiscal Year (10/1 - 9/30) Jul-2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Scheduled NNN Effective Rent Per SF/Mo. $1.27 $1.30 $1.32 $1.35 $1.38 $1.41 $1.43 $1.72 $1.36 $1.39 $1.41 $1.44Total Operating Expenses Per SF/Mo. $0.66 $0.66 $0.68 $0.70 $0.72 $0.74 $0.76 $0.74 $0.81 $0.83 $0.85 $0.88Average Occupancy 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 58.33% 100.00% 100.00% 100.00% 100.00%

GROSS REVENUEBase Rental Revenue 1,710,644 1,744,581 1,779,330 1,814,967 1,851,453 1,888,870 1,927,295 1,799,090 1,826,078 1,862,598 1,899,851 1,937,848Absorption & Turnover Vacancy 0 0 0 0 0 0 (449,772) 0 0 0 0Expense Recoveries 599,326 599,326 617,062 635,330 654,144 673,518 686,612 795,814 1,083,018 1,114,597 1,147,674 1,182,344Gross Rental Income 2,309,970 2,343,907 2,396,392 2,450,297 2,505,597 2,562,388 2,613,907 2,145,132 2,909,096 2,977,195 3,047,525 3,120,192

General Vacancy 0 0 0 0 0 0 0 (145,455) (148,860) (152,376) (156,010)Effective Gross Income 2,309,970 2,343,907 2,396,392 2,450,297 2,505,597 2,562,388 2,613,907 2,145,132 2,763,641 2,828,335 2,895,149 2,964,182

OPERATING EXPENSES Cleaning / Janitorial (21,600) (21,600) (22,248) (22,915) (23,603) (24,311) (25,040) (22,568) (26,565) (27,362) (28,183) (29,029) Repairs & Maintenance (127,138) (127,138) (130,952) (134,881) (138,927) (143,095) (147,388) (151,809) (156,364) (161,055) (165,886) (170,863) Utilities (274,407) (274,407) (282,639) (291,118) (299,852) (308,847) (318,113) (286,699) (337,486) (347,611) (358,039) (368,780) General & Administrative (34,058) (34,058) (35,080) (36,132) (37,216) (38,333) (39,483) (40,667) (41,887) (43,144) (44,438) (45,771) Common Area Maintenance (87,393) (87,393) (90,015) (92,715) (95,497) (98,362) (101,312) (104,352) (107,482) (110,707) (114,028) (117,449) Management Fee (46,878) (46,878) (47,928) (49,006) (50,112) (51,248) (52,278) (42,903) (55,273) (56,567) (57,903) (59,284) Real Estate Taxes (276,327) (276,327) (284,617) (293,155) (301,950) (311,008) (320,339) (329,949) (339,847) (350,043) (360,544) (371,360) Insurance (14,159) (14,159) (14,584) (15,021) (15,472) (15,936) (16,414) (16,907) (17,414) (17,936) (18,474) (19,029)Total Operating Expenses (881,960) (881,960) (908,063) (934,943) (962,629) (991,140) (1,020,367) (995,854) (1,082,318) (1,114,425) (1,147,495) (1,181,565)

NET OPERATING INCOME $1,428,010 $1,461,947 $1,488,329 $1,515,354 $1,542,968 $1,571,248 $1,593,540 $1,149,278 $1,681,323 $1,713,910 $1,747,654 $1,782,617

CAPITAL EXPENDITURESTenant Improvements 0 0 0 0 0 0 (1,838,135) 0 0 0Leasing Commissions 0 0 0 0 0 0 (526,643) 0 0 0Capital Reserve (22,391) (23,063) (23,755) (24,468) (25,202) (25,958) (26,737) (27,539) (28,365) (29,216)Total Capital Expenditures (22,391) (23,063) (23,755) (24,468) (25,202) (25,958) (2,391,515) (27,539) (28,365) (29,216) Cash

IRRNET CASH FLOW $1,439,556 $1,465,266 $1,491,599 $1,518,500 $1,546,046 $1,567,582 ($1,242,237) $1,653,784 $1,685,545 $1,718,438 9.58%

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