All data listed below is as of EOY 2011:

The Industrial Market Vacancy Rate in Las Vegas is 15.2%.

Total Industrial Inventory in the Las Vegas Valley is 108 million square feet.

Zero square feet of speculative industrial space is currently under construction.

Average Monthly Base Rent for all categories of Industrial space is $.51 per square foot per month NNN.

Total Unemployment in the Las Vegas Valley is 12.5%.

PURCHASE AN INDUSTRIAL BUILDING

Comp Sales: Industrial Buildings

Address	Submarket	Sold Price	Sold Date	Bldg Sq Ft	Sold Price Per Sq Ft	Land Acres	Year Built
4570 Donovan	NLV	$680,000	3/13/12	12,500	$54.40	1.17	2002
2313 Mendenhall	NLV	$1,260,540	10/26/11	26,720	$47.16	1.81	1997
3546 Procyon	SW	$1,396,000	3/23/12	28,330	$49.28	2.34	1963
4625 W Nevso	SW	$700.000	3/30/12	16,962	$41.27	1.27	1990
4149 Wagon Trail	SW	$557,500	3/22/12	8,024	$69.48	.46	2003
6705 S Eastern	AIR	$2,650,000	1/18/12	34,748	$76.26	1.85	2005
270 Spectrum	ELV	$2,871,000	12/02/11	33,579	$85.50	1.93	2001
2875 N Lamb	ELV	$7,000,000	12/29/11	169,085	$41.40	9.78	2007
4114 N Pecos	NLV	$9,400,000	8/17/11	162,336	$57.90	9.05	1999

Submarket abbreviations: SW=Southwest, NLV=North Las Vegas, AIR=Airport, ELV=East Las Vegas, C=Central, H = Henderson

General Outline of the Purchase Process

Building Requirements: Buyer must communicate a description of the Buyer's building requirements to Buyer's Broker: Total building square feet including size of warehouse and office, monthly loan payment budget, occupancy date, clear height, power, natural gas, loading docks, fire sprinklers, yard space for outside storage, number of employees for parking requirements, description of trucks making deliveries, bandwidth, description of activity to be conducted in the warehouse for zoning regulations, freeway access, anticipated holding period, and any other building location requirements.

Market Survey of the Industrial Submarkets: Buyer and Buyer's Broker should drive the industrial submarkets in the Las Vegas Valley and decide which submarket would best suit the Buyer.

Site Tours: Buyer's Broker will set up appointments with Owner Brokers to walk through various buildings in the chosen submarket. Decide on the best building to Purchase.

Offer and Acceptance: The Buyer's Broker will generate an Offer To Purchase the selected property based on terms dictated by the Buyer. The Offer will describe: Legal Names of Buyer and Seller, Real and Personal Property, Earnest Money, Offered Purchase Price, Down Payment, Financing, Closing Date, Escrow Holder, Escrow Officer, Title Policy, Contingencies to Closing and Timeframes for satisfying Contingencies to Closing , Brokerage Fees and Agency Disclosure, Payment of Closing Costs, Seller Warranties, Address For Notice, Offer Expiration Date, Liquidated Damages, Arbitration of Disputes. Buyer should retain a real estate attorney to review the Offer.

Third Parties: If requested, Buyer's Broker can recommend 3 of each:

Lenders
Property & Casualty Insurance Companies
Attorneys
Surveyors
Engineers (environmental, geotechnical, hydrology, civil)
Contractors for physical inspections
Property Managers

Negotiate the Offer with the Seller and gain acceptance of the Offer

Escrow

Open of Escrow: Buyer's Broker or Owner's Broker will take the fully executed Offer and the Earnest Money check to the Title Company and open Escrow.
Preliminary Title Report: Order the Prelim and all supporting documentation and review thoroughly. Buyer should retain a real estate attorney to review these documents.
Financing: Buyer should meet with Lenders as soon as Escrow has opened. Bring the fully executed Offer and Acceptance, 2 years Tax Returns and Current Financial Statements. The Lenders will generate a written Conditional Loan Commitment to Buyer with all loan terms described. Select a Lender. An Appraisal will be paid for by the Buyer and ordered by the chosen Lender. Arrange for any necessary 3rd Party reports: ALTA Survey, Soils Report, Environmental Audit, Drainage report, Physical Property Inspection by a General Contractor. Lender may require Buyer to vest ownership in a newly formed "single purpose entity".
Contingencies to Closing: Immediately begin satisfying all the Contingencies to Closing as soon as possible after open of escrow.

Closing: The Lender will not fund the loan until Buyer has either assumed the existing Fire and Casualty Insurance Policy or has contracted for a new policy. The Lender will dictate the required coverage to your Insurance Agent.

Typical Allocation of Closing Costs in Las Vegas, Nevada:

Closing Costs	Paid by
Recording Fees:
Grant Deed	Buyer
Note & Trust Deed	Buyer
Lender’s Title Policy premium	Buyer
Title Policy Endorsements for Lender	Buyer
New Loan Origination Fee (Points)	Buyer
All Other New Loan Fees	Buyer
Insurance Premium (New Policy)	Buyer
Flood Insurance	Buyer
UCC Fees (Personal Property records)	Buyer
Escrow Fee: 50%	Buyer

Escrow Fee: 50%	Seller
Buyer’s Title Policy premium (CLTA)	Seller
Real Property Transfer Tax ($5.10/$1,000 Value)	Seller
Commission	Seller
Old Loan Payoffs: Reconveyance (P&I)	Seller
Assessments	Seller
Prorations:
Taxes (Paid in advance)	Both
Sewer (Paid in advance)	Both
Insurance (If Buyer assumes policy)	Both

Financing: Typical Owner/User Industrial property in Las Vegas (May1, 2008):

Construction Loan

     Interest Rate 5% Interest Only (Prime plus 200 basis points)

Permanent Loan

     Loan Balance Up to 75% LTV

     Interest Rate - 7 Yr Fixed Rate 6% (10 Year Treasury plus 100 - 400 Basis Points)

     Transaction Costs 1.5% -2% of Loan Amount

     Loan Term 7 Years

     Amortization Period Up To 30 Years

     Recourse Yes

Close of Escrow: After all contingencies have been satisfied, the Buyer and Seller have signed the closing documents, and the Lender is prepared to fund the Loan, the Escrow Officer can close the Escrow.

New Business Set Up: As far as Utilities are concerned, if the Seller has ordered a “Termination of Service” and Buyer has ordered a “Request for New Service” for Close of Escrow, the changeover can be seamless. The utilities will stay on and the Buyer will begin receiving the bills. Select the New Business Links on the Link Bar for phone numbers and websites.