Financial Research Group

Corporate Brochure

11390 Olympic Blvd., Suite 480 Los Angeles, CA 90064 t: 310.319.1888 e: dietrichsh@aol.com w: financialresearchgroup.com

Home Savings Tower, Los Angeles, California Consulting Developer

Our approach to each project is a simple, uncompromised commitment to excellence and to the advancement of our Client’s interests.

This commitment, combined with the confidence and support of our Clients, is the foundation of our success.

CONTENTS

I

Introduction

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II

Development Services

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III

Consulting Services

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IV

Partial Client List

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V

Client References

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VI

Professional References

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VII

Qualifications

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VIII Appendix

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The California Endowment, Los Angeles, California Needs Analysis, Site Evaluation and Acquisition, Development Management and Construction Management (joint venture with Project Development Group)

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I Introduction

Since its formation in 1970, Financial Research Group (FRG) has provided sophisticated real estate development and consulting services to its institutional, corporate and real estate clients. The firm’s approach to projects recognizes that real estate is not a homogeneous commodity. Creation and maintenance of value require sensitivity to the opportunities and limitations of each project and to the market it serves.

FRG emphasizes the application of these ideas in the development and operation of large, complex, real estate and consulting projects for its clients.

The past 5 years have brought convulsive changes to the real estate industry. Today, we must respond to immediate challenges and opportunities while protecting long term value. However, the fundamentals of success remain unchanged: long term value can only be created through the sustained delivery of a quality product to the ultimate consumer.

• Project Programming

The firm has a well-earned reputation for excellence in a number of areas, including, but not limited to: • Feasibility Studies and Market Based Master Planning • Project budgeting • Project Scheduling • Development Management • Property recovery • Review of Problem Properties and Development of Recovery Programs

02

The Arboretum Gateway, Santa Monica, California 200,000 SF Office, 5 Level Underground Garage Consulting Development and Construction Management (Joint Venture with Project Development Group)

03

The firm is unique in the flexibility of its relationships with its clients.

For clients with limited internal real estate resources, FRG can assume full responsibility for the development process. For firms with significant real estate capabilities, FRG works with the client’s personnel, often as a part of the client’s organization. FRG can also act in the traditional role of a consultant, producing analytical reports and recommendations.

FRG’s widespread experience as a developer/owner, manager, and consulting developer has given it an extensive knowledge base that is unique in the industry.

Our firm is able to undertake large projects through the use of strategic partners and our long term relationships with professional firms in Southern California and other areas. For the past two decades we have worked on a joint venture basis with Project Development Group of Beverly Hills. PDG specializes in construction management. The relationship provides construction expertise commencing in the early phases of the project and a seamless transition to the construction phase.

The joint venture projects include the Arboretum Gateway (Universal Music Group) project, Sunset Millennium and California Endowment Headquarters project.

04

Santa Fe International (C.F. Braun), Alhambra, California 37 Acre Site, 1.4 million SF of Existing Office Redevelopment Masterplanning, Feasibility Alternatives and Disposition Management.

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II Development Services

FRG has the capacity to manage the development of complex projects from concept through completion.

FRG brings to each project a unique combination of experience gained as an owner/developer, managing developer, member of large project development teams, and consultant on more than 21 million square feet of projects.

FRG initially focuses its attention on the first 20% of the development process, where 80% of the critical decisions will be made. During this early stage of the project, FRG assists its clients by identifying critical issues, exploring alternatives, and delivering the analytical support required to make informed decisions.

One of the most effective tools available to the project team is a wellconceived and properly maintained development program which starts with the opportunity that the project seeks to exploit.

Each project reflects a unique opportunity and has special requirements. For most projects, the marketing, design, financing, and regulatory objectives are interrelated.

FRG carefully prepares and faithfully executes a user-oriented development program which remains the cornerstone of the successful project as the development process becomes more complex.

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The extended entitlement process of major projects can distance the pre-development team from the realities and needs of the client and the market. FRG provides leadership within the project team, bringing all parts together in order to conceive and execute a well-planned project.

FRG recognizes that on large projects, there are few decisions or actions that are insignificant. To maintain the integrity of the project through completion, FRG works with recognized leaders in construction management to deliver the high level of effort required during construction.

FRG solicits the owner’s input at each critical decision point as well as when the owner requests involvement. In effect, the owner’s senior management acts as directors of the development process, while FRG assumes responsibility for the creation and execution of the development program.

Although the firm undertakes a wide variety of consulting projects, it limits the number of its active projects at any given time. This way, each client receives the benefit of our extensive, active involvement with its project.

07

Sunset Millennium, Los Angeles, California Consulting Developer & Construction Management (Joint Venture with Project Development Group)

Many firms have a significant capacity to manage the development process internally. However, they recognize that their projects will benefit from a review, or second opinion, of the project. This ranges from a review of the complete project to assistance with specific elements of the development process. On some projects, FRG has been retained by senior management of the corporate parent to review and assist in the development of projects undertaken by subsidiary organizations.

FRG’s role is to assist the project personnel and senior management of the client company in the evaluation and execution of their project in a manner consistent with the goals that they have established. FRG’s wide range of experience on major projects gives it the ability to anticipate problems, identify alternatives, and bring tested solutions to many common issues.

FRG’s development management services include management of the entire development process, from site acquisition to completion and leasing.

The scope of services is assembled to meet the needs of a specific project and typically includes many of the following: • Development programming • Feasibility and due diligence studies • Site selection • Site acquisition

• Design review and coordination • Contractor selection and negotiation • Development coordination and management • Financial controls, from vision to completion • Construction Management • Coordination of governmental requirements completion • Development coordination and management • Project reporting • Project Closeout FRG’s clients include many of the nation’s largest developers and financial institutions, as well as various individual investors. FRG has provided development services to more than 10.5 million square feet of existing and proposed office and R&D projects in the western United States.

• Architect and engineer selection • Design coordination • Project budgeting and scheduling • Architectural supervision • Governmental approval processing and negotiation

08

Conceptual Design, Los Angeles, California

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III Consulting Services

FRG provides consulting services to institutional, corporate, and private clients. Services include specialized support of project planning, budgeting, scheduling, and marketing activities. Applying its experience as both a developer/owner and consultant, the firm offers tested solutions to critical issues.

FRG has undertaken a wide variety of real estate oriented consulting projects.

Projects can include: Development consulting on highrise office building projects for major national developers, with particular emphasis on conceptual development, product definition, budgeting, and design control.

Property Acquisition and Creation of co-mingled real estate funds for major financial institutions, private investors, corporate facilities including acquisition strategies, property sourcing and screening, negotiation, due diligence, closing and startup.

Asset recovery for severely damaged or deteriorated properties including implementation of emergency repairs and security, reconstruction management, insurance settlement, marketing, and sale.

Review of non-earning assets and development of strategy for completion and disposition on behalf of financial institutions.

Development consulting on major high-rise projects for non real estate oriented, institutional clients with extensive involvement from initial feasibility through completion and leasing.

Investor representation for institutional and private clients on joint venture development projects.

Lease negotiation and tenant representation for corporate tenants.

Relocation of corporate headquarters including lease vs. purchase analyses and development of specific options.

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Conceptual Design, Los Angeles, California

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Computer programs and analytical tools for institutional and corporate clients, to assist staff in the review and development of major projects.

Project review and analysis for Fortune 500 Companies whose Boards of Directors are considering major corporate real estate projects.

Seminars and training programs for partners and asset managers of major institutional and corporate owners.

Redevelopment analyses for regional bank headquarters, including program, budgets, schedules, and economic analyses for each alternative.

Real estate acquisition services including portfolio strategies, search, evaluation, and acquisition of properties.

Building repair and failure review and documentation, including litigation support.

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13

Koll Company

IV CLIENTS

Ladbroke Racing Larwin Corporation Lincoln Property Company Los Angeles Center Los Angeles Unified School District Smith and Hricik Maguire Partners Marine TerminalsCorporation O. Miller Associates

Arboretum Gateway

Mark Fabrics

A. F. Gilmore Company

Peck Trust

Ahmanson Commercial Development Co.

Professional Risk Management

AVNET

Public Storage

Avionics West, Inc.

Duke Reyes

Bank of California

Silverado Development

C. L. Peck

Stahl Trust

Carson Estate Company

Sun America

Casey Foss

Sunset Millenium

Carte Blanche Corporation

Terminal Equipment Company

County of Los Angeles

The California Endowment

Crest Steel Corporation

Tobin & Tobin

Dominguez Estate Company

Tooley & Company

Dos Carlos Stages

Trammell Crow Company

Douglas Group

Universal Capital Corporation

Gardner Company

Upland Industries

Goldstein Planting

Union Pacific Railroad

Guthy-Renker

USA/Pacific Atlas

Halekulami/Mitsui Fudosan

USA Petroleum

Harbor Distributing

Watt Industries

Haseko

Wells Fargo Bank

14

World Trade Center, Long Beach, California (proposed) Consulting Developer

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V CLIENT REFERENCES

William Hammerstein Arboretum Gateway, LLC, Santa Monica, California Bruce Kendall Los Angeles Unified School District, Los Angeles, California John Miller Tishman Speyer, Los Angeles, California Julie Tugend The California Endowment, Los Angeles, California Drew Planting J.H. Snyder Partners, Los Angeles, California John J. Mika Santa Fe International Corporation, Dallas, Texas Rosalie K. Stahl The Stahl Trust, New York, New York Chris Redlich Jr., John Sullivan Marine Terminals Corporation, San Francisco, California William L. Tooley Tooley & Company,, Santa Monica, California Preston Butcher William Shubin Legacy Partners Commercial, Inc. (Formerly Lincoln Property Company, N.C. Inc.) Foster City, California

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VI PROFESSIONAL REFERENCES

ATTORNEYS O’Malley Miller, Jeffrey Heintz Munger, Tolles & Olson, Los Angeles, California Fred Allen, Brian Leck, Rick Mallory Allen, Matkins, Leck, Gamble & Mallory Los Angeles, California ARCHITECTS AND ENGINEERS David Hibbert David Hibbert Associates, Architects, Santa Monica, California Robert Englekirk, Lawrence Ho Englekirk Partners, Inc., Los Angeles, California

Matti J. Prabhu Matti J. Prabhu & Associates, Santa Monica, California Trailer Martin, Chuck Whittaker John A. Martin & Associates, Los Angeles, California CONTRACTORS Paul Matt Matt Construction, Santa Fe Springs, California Steve Saunders Saunders Construction, C osta Mesa, California OTHER

Jack Price Jack Price Architect, Beverly Hills, California

Wayne Ratkovich, James Phelan Ratkovich Company, Los Angeles, California

Herb Nadel, Dale Yonkin Nadel Architects, Los Angeles, California

Peter Stevenson Stevenson Systems, Newport Beach, California

Andy Cohen Gensler & Associates, Santa Monica, California

Sam Ross Crain & Associates, Los Angeles, California

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VII QUALIFICATIONS Stephen H. Dietrich, President Thirty years of experience in the development of complex urban projects.

Management of the entire development process from project definition through completion. In-depth experience in major project programming, budgeting, and scheduling. Extensive experience in project entitlements including preparation and processing of EIR’s, entitlement processing, negotiations with governmental agencies, redevelopment studies, and documentation of project agreements.

Also, Guest Lecturer at The Anderson Graduate School of Management at UCLA from 1997 - 2005.

Professional Background University of California, Los Angeles Anderson Graduate School of Management Guest Lecturer, 1997 – 2005 Los Angeles, California Created and taught the school’s course in Real Estate Development: Selected Topics in Urban Land Economics - Entrepreneurial Real Estate Development.

Faculty advisor to NAIOP Competition team.

Financial Research Group President, 1980 – Present Los Angeles, California

Real Estate Development and Management : Development of commercial, office, and industrial facilities as a general partner. Management of retail, office, and industrial projects including marketing, leasing, operations, and dispositions.• Consulting Development: Consulting developer on major office and commercial projects including initial feasibility studies, evaluation of project alternatives, development programming, entitlements and governmental approvals, project scheduling, development budgeting, contractor selection, and development management. Project types include highrise office, mixed-use, industrial, and land development.

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Consulting Services : On more than 50 major commercial and residential projects, the firm has provided focused consulting services such as: evaluation of potential acquisitions, redevelopment studies, site evaluations, evaluation of development proposals, public/private sale-leaseback transactions, portfolio review, portfolio strategy development, building retrofit studies, project risk assessment, joint venture evaluation, tenant representation, investor representation, occupancy alternatives for public agencies, evaluation of ground lease proposals, asset dispositions, and asset acquisition.

Project Planning and Approvals : One of the firm’s specialties is coordinating the approval process for commercial and mixed-use projects. Services include selection of the project team, market evaluation, site evaluation, supervision of the master planning process, feasibility evaluation, approvals processing strategy, supervision of EIR and other studies, negotiation with governmental agencies for owner participation agreements, EIR certification, rezoning, specific plan approvals, and development agreements.

Tooley And Company Vice President, 1976 - 1979 Los Angeles, California

Property Acquisitions : Development of portfolio strategy, property search, evaluation of acquisition negotiations, purchase documentation, and start-up operation. Property types included industrial parks and office buildings.Office Building Development : Site identification, initial feasibility studies, project programming, budgeting, and scheduling. Properties included 201 California Street (Hibernia Bank Headquarters), San Francisco, and 1299 Ocean Avenue (Wilshire Palisades Building), Santa Monica.

Development Management : Preparation of feasibility analyses, site acquisition, preliminary design, marketing, lease negotiations, selection and supervision of architectural teams, construction bidding and administration, financing, and approvals processing. Project types included industrial and office facilities Financial Research Group Founder, 1970 - 1976 Los Angeles, California

Property Acquisitions : Property evaluations, negotiation and documentation of acquisitions, financing, management, and leasing. Property types included residential and commercial.

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Financial Institution Services : Evaluation of investment property operations, evaluation of client portfolios on behalf of financial institution, negotiate for limited partners on behalf of the institution, investment development services, including evaluation of acquisitions for individuals and partnerships on behalf of the financial institution, and evaluation of nonperforming assets. Property types included commercial, residential, agricultural, and raw land development.

Investment Fund Operations : Development of portfolio strategy, supervision of the acquisition process, negotiation of property purchases, due diligence studies, supervision of asset management and dispositions, training of financial institution personnel, and representation of the institution to potential pension fund investors. Portfolio included both commercial and industrial properties.

Individual Acquisitions : Development of portfolio goals, portfolio evaluation, property search, negotiations, and documentation. Property types included commercial and office.

Special Services : Limited partner representation, due diligence studies on public real estate offerings, evaluation of development proposals, project redevelopment studies, evaluation of property operations and leasing. Property types included residential, commercial, and industrial.

United Professional Planning Vice President of Real Estate, 1968 - 1969 Los Angeles, California

Investment Acquisitions, Development, and Management : Evaluation of existing and to-be-developed properties, preparation and negotiation of offers, documentation of purchases, financing, start-up, and operation of portfolio.

Properties included office, commercial, and more than 2,000 apartment units Del Amo Center And The City Development of Major Pioneering Mixed-use Projects, 1965 - 1968 Southern California The Del Amo properties consisted of Del Amo Financial Center and more than 100 acres of surrounding retail, office, and industrial development. The City project, located in the city of Orange, was a 200-acre, mixed-use project including retail, office, and residential properties.

Work included feasibility studies, representation of managing partner, leasing coordination, special projects, financing, budgeting, scheduling, and approvals processing.

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Education Harvard University Graduate School of Business Administration Master of Business Administration with an emphasis in Finance Cambridge, Massachusetts University Of California, Los Angeles Bachelor of Science in Business Administration Los Angeles, California Other California Business Guest Editor - Real Estate Wrote bi-weekly column for California Business on the Real Estate industry.

Guest Speaker Ongoing Topics have included Acquisition Strategies, Management of the Co-Mingled Fund, Implementation of Due Diligence, Management of the Development Process, Quality Control in the Development Process, User-Oriented Office Building Development for Long Term Value, Lessons from the Private Sector for Acquisition and Development of Public Sector Facilities, Development Programming for Major Office Projects, Tactical Strategies in Major Project Leasing and Operations, Thinking Smart about Smart Buildings, Strategic Leasing, and Development Outlook.

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Elaine E. Lokshin

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Elaine E. Lokshin

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Elaine E. Lokshin

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VII APPENDIX

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OFFICE PROJECTS NAME/LOCATION

SIZE/TYPE

One Pacific Plaza Fremont, California

207,100 SF Office Building

Phoenix Leasing Boston, Massachusetts

Office Lease

Casey Foss, Inc. San Francisco, California

Office Lease

Park Plaza Building Fremont, California

40,000 SF Office Building

Tobin Office San Francisco, California

Lease

Dupont Professional Bldg. Irvine, California

22,000 SF Office Building

Woodbridge Anaheim, California

42,000 SF Office Building

Fresno Air Terminal Fresno, California

23,000 SF Office Building

Rocky Mountain Energy Denver, Colorado

200,000 SF Office Building

Sierra Online Oakhurst, California

32,000 SF Office Building

One Westwood Westwood, California

200,000 SF Office Building

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CLIENT

PARTICIPATION

Gulf-Western Ltd.

Feasibility, Consulting for Owner/ Developer

Phoenix Leasing John Casey

Tenant Representative

Casey-Foss J. Casey

Tenant Consulting

Universal Capital David Freed

Redevelopment, Management, & Leasing

Tobin & Tobin David Freed

Tenant Representation

Dupont Professional Universal Capital

Management & Leasing

Woodbridge, Ltd. Universal Capital

Management, Leasing, and Sale

Rosenberg Associates

Developer/Partner

Union Pacific Railroad Upland Industries

Development Review for Parent Company

Sierra Associatse

Partner, Co-Developer

Lincoln Property Co. Preston Butcher

Acquisition and Development Analysis

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