McKinney Advisory Group Introduction

By

(Ph) 858.519.3240 (Fax) 858.519.3250

Prepared For: Thomas EbnerDirector Kontron

Date: November 4, 2014

Corporate Real Estate and Government Economic Incentives Advisory Services

Building Strategic Partnerships for the Future

12250 El Camino Real, Suite 220, San Diego, CA 92130

San Diego Long Beach Honolulu Orlando St. Louis

www.McKinneyAdvisory.com

Damian McKinney, Founder & CEO

Cell: 562.889.2001

Email: [email protected]

Julie Dunlap, Corporate Real Estate Advisor

Cell: 858.229.5597


Peter Quinn, Corporate Real Estate Advisor

Cell: 858.864.8491


80% of the team members have over 15

years of corporate real estate advisory

experience specializing in industrial,

office, and retail.

Andy Zlotnik Legal Counsel

Jamie Keller Portfolio Lease Admin

Lic.#01249255

Damian McKinney Principal

Lic.#00777218

Peter Quinn Corp. RE Advisor

Lic.#00806439

Julie DunlapParalegal / Corp. RE Advisor

Lic.#01243401

Charlie Copelan Corp. RE Advisor

Lic.#0129508

Kelly Nicholls Corp. RE Advisor

Lic.#00947564

Personalized Project Team

All information contained herein is from sources deemed reliable, however, no representation or warranty is made as to the accuracy thereof. McKinney Brokerage Group License #01891265

Andrew Metyers Corp. RE Advisor,

Investment, Financial Analysis Lic. #01239760

Lisa Jarman Corp. RE Advisor

Lic. #01806439

Tyler Repstad Market Research Specialist

Lic. #01942179

Value Added Services

Real Estate Services

Market Analysis - Competitive Site

Negotiate Lease Terms and Conditions

Review Lease Terms

Program Brief

Tenant Improvement Scope

Review Financing

Site Alternatives Study

Build To Suit

Sale Lease Back Comprehensive

Programming

Key Date Tracking

Lease Abstracting

CAM* Reviews & Audits

Government & Community Interface

Landlord Interface

Lease Administration

Construction Review

IT Procurement Admin

Furniture Procurement Admin

Audio/Visual Program Admin

Move Management Program

Administration

Workplace Strategy

Interior Architecture

Project Management Services

*CAM: Common Area Maintenance

All-Encompassing Tenant Representation Services

Transaction Management

Pursuit of state & local incentives

Assess site and building information using national

data that we acquire

Orchestrate multi-site competition to maximize client leverage

Solicit and evaluate proposal responses

Develop/negotiate Letter of Intent

Aggressively negotiate lease/purchase contract

Financial Analysis

Occupancy cost analysis

Lease vs. Buy analysis

Alternative location cost comparison

Government incentive benefits analysis

Expense reconciliation and audit

Strategic Planning

Evaluate current situation

Define current and future real estate financial goals

Orchestrate workspace optimization

Assist in budget development and support

Prepare critical-path time lines

Develop strategic real estate plan

Market Research

Market research surveys, demographics, and property reports

Vacancy and absorption statistics

Market trend analysis

Analyze sale & lease comparables

Project Management

Refine project time lines

Work letter review and negotiations

Negotiate vendor contracts

Monitor value-engineering process

Monitor costs and options

Advise on move coordination

Ongoing Services

Annual operating expense audits at no charge

Landlord/tenant liaison

Lease administration

Asset management

Sublease and buyout negotiations

Disciplines of Experience

New lease agreements

Lease renewal negotiations

Blend-and-extend renewal negotiations

Expansion/contraction negotiations

Lease buyouts

Subleases

Acquisition, including facilitating financing

Build-to-suits

Sale/lease-back

Construction of add-on space

Remodeling/repositioning

Disposition of assets

Alternative sources of debt and equity

Financial Statement Impact Review

Every Client is unique, having its own financial requirements and focus. While most Clients are

comfortable with cash flow analysis for decision making, businesses with large and growing multi-

location real estate assets often have particular additional requirements, including GAAP reporting,

lender covenants and compliance, economic profit analysis, and capital budget decision support.

Financial Alternatives Review

As a result of both its Client side representation as well as its substantial investment fund

management experience, McKinney is well versed in traditional financing and acquisition

techniques. But more importantly, McKinney has tremendous experience in structuring

alternative financing techniques which often open up a whole new world of possibilities for the

Client. Some of these alternatives include Sale/Leaseback, Section 1031 Like-Kind Exchanges, Credit

Tenant Lease financing, New Market Tax Credit, EB - 5 Funding and Economic Development

Incentives.

Core Planning Optimization (a.k.a. Rocket Science)

The mathematics of optimization is the Rocket Science of real estate and we sometimes

employ the services of our PhD affiliates to solve for (recommend) an optimized footprint

strategy.

In this type of project we identify real estate planning groups and their requirements. Based on the

business requirements, metrics, and site visits, McKinney will identify opportunities for savings and

performance improvements.

Results are often staggering, resulting in savings of tens of millions of dollars over the planning

horizon. Using the same optimization software used by the major airlines, hotel chains, retailers and

international logistics planners, the McKinney team can identify sound optimized portfolio footprint

strategies for the Client to implement.

Working with the Clients business unit leaders, McKinney will develop a deep understanding of the

different types of business activities and their real estate requirements.

Corporate Real Estate Tenant Representation

Possible Planning Group Adjacencies

Closer to Headquarters

CommercialProducts Commercial

Sales

Marketing

MobileProducts

AdminSupport

Facilities

NewProducts

NewProductResearch

Data Center Ops

Partner ServicesProject

Management

Software Engineers

Sales Activities

SupportActivities

Legal

HumanResources

Finance

Consumer Sales

New Retail Product C

Core ConsumerProducts

IT Security

Senior Executives

New Retail Product A

Management Challenges Facing Businesses with Multi-Location Commercial Real Estate Footprints How McKinney Helps Clients Navigate the Unique Challenges Presented by Multiple Location Business Models (Leased or

Owned)

For most businesses a major decision about real estate location is an infrequent event

occurring mainly when a single lease expires once every five to seven years.

But for certain types of businesses, a large and growing portfolio of real estate locations (leased

and owned) is critical to success. Even manufacturing and distribution operations are often an

optimized network of locations. Managing such a multi-location portfolio of real estate assets

becomes a major administrative process and often requires daily attention. Moreover,

consolidation comes into consideration as operations reach critical mass.

Thats where McKinney Advisory Group can help. Clients with multi-location real estate

business can turn to our experienced team of commercial real estate transaction

specialists and our post-transaction administration and management experts to stay on top of

their real estate holdings.

Working collaboratively with the Clients own commercial real estate executives, McKinney

Advisory Group helps Clients develop and implement a customized strategic real estate plan

that incorporates the best practices and sound work flow management. The result is an

enterprise wide, strategic real estate management solution, with substantial Client cost savings.

Seeing a Clients Collection of Locations as an Integrated Portfolio

McKinney Advisory Group is not your typical commercial real estate representation firm.

While we do specialize in transaction and location acquisition strategies, McKinney

has always prided itself on its holistic portfolio view. Our Client for Life philosophy and

continued involvement after the transaction is closed is what sets McKinney Advisory

Group apart. Thats why we have client relationships lasting, in some cases, for 30 +

years.

All real estate administration begins with the location. As such, we maintain client

location data in a location-centric data base that organizes and tracks all data on both leased

and owned property in the area. Using state of the art cloud based information architecture,

Clients have direct log-in access to their portfolio via an encrypted internet portal. What this

means for the Client is no significant investment in IT or IT infrastructure while having the

ability to access portfolio information 24/7.

Site Selection and Acquisition Transaction Management

McKinney Advisory Group helps Clients excel in location acquisition strategy by

initiating and managing competitive RFP site selection evaluation processes designed to

pull all data together into a manageable decision format, including demographic profiles,

drive times, public transportation nodes and landmarks, energy costs, labor costs and other

critical variables.


Real Estate Analytics

Program Management

Pre-Open Operating

Sites

Proforma Lease

Potential Locations

Projects Locations Parcels

Facilities Capital

Projects

Contracts/Leases

Tax Parcels

Operating Locations

Remodels, Renovations, etc. Contracts

on Location, Parcel, Facility Locations

Locations Being Built

Pro

toty

pes


Developing a Comprehensive Strategic Plan The Play Book

McKinney Advisory Groups Real Estate Strategic Planning Solutions help manage the entire life cycle

of all Client locations by focusing on:

Location analysis, performance management, long and short-term growth projections

Portfolio Management & optimization

Site selection and transaction management

Lease analysis vs. Purchase analysis

Build-to-Suit analysis

Space build-out & move management

Facilities management

Capital program & project management

Local and regional Government Incentives analysis

Lease administration & rent accounting

Time management, cost projections, bench marks, accountability and contingencies are all integral

parts of a good strategic real estate plan. McKinneys team of experts, in cooperation with its clients

decision makers, help structure the entire campaign of site identification, proforma creation and

analysis, site vs. site analysis, site selection, competitive acquisition, and ultimately cost reduction

comparison analysis.

Tenant Representation is a topic in itself. But in a nutshell, McKinneys 7- Step process, fine tuned for

over 30 years, jump-starts its selection process by mining regional & national data bases to develop a

comprehensive local market analysis and an initial set of space candidates that fit the Clients defined

needs.

With a robust market analysis in hand, McKinney initiates a competitive bake-off among possible

space candidates and documents the progression of offers and counter offers. It is not unusual for

McKinney to manage detailed RFP offer and counter offer bids for 10 or more candidates per

desired location.

After the Client and McKinney narrow the candidates to a short-list, we develop detailed

comparative Lease Proforma data and perform cash flow and P&L analysis (including

GAAP and SOX impact, if necessary). Side-by side comparison of multiple lease proposals

help support optimal decision making.

Identify Needs & Requirements

Analyze Target Markets

Identify Initial Targets

Analysis and Short Lists

Negotiations

Selection

Post Execution

1

2

3

4

5

6

7

Lease Administration Scope of Services

McKinneys Lease Administration Services are a secret weapon for its Clients. Our Lease (and

Contract) Administration Services include:


Auditing

Real Estate Operational Expense Auditing

Lease Abstracting, Validation & Design

GAAP Capital Lease Consulting Occupancy

Cost Allocation

Diligence

Space Size Verifications


Lease Negotiation - Lease Traps

While most clients focus on the big ticket items (base rent and tenant improvement costs)

McKinney Advisory Group makes sure that the two-dozen or so standard Landlord

friendly terms designed to trap unwary tenants are also negotiated out of the

transaction. These lease traps can cost an unsuspecting tenant almost as much as the base

rent.

By calling upon our 30+ years of experience and a standard set of Client requirements as

well as our own set of tenant favorable lease amendments, we routinely save our Clients tens

of thousands of dollars. In fact, this aspect alone typically generates savings into the

thousands for our Clients.

Construction and Tenant Improvement Project Assistance

McKinney will also coordinate the creation of schedules and budgets by project type,

regions, market or any other method desired or used. Having worked in this area for

decades, we have seen it all. And we dont let the way it's always been done penalize

the Clients schedule or budget.

McKinney Advisory Group can assist the Client to track all facilities, their assets, and

construction projects including documents, schedules, and budgets related to each facility as

well as equipment detail on each facility asset.


Clients often track every space, its use, and any occupancy details including association

with related subleases. Clients often desire to track facility performance history for

sales, expenses, or other metrics. We can assist Clients in the implementation of this

tracking and can later use this data for strategic insights and portfolio review.

Contingency planning affects the importance of "options" to expand, cancel or sublet space as well as length of lease term, options to buy or rights of first refusal. Creating"real options" and management flexibility in thoughtful ways that matches the Client's business needs is an important aspect of McKinney's portfolio advisory service.

McKinney Lease Administration Keeps Clients in control of important financial impact items, such as:

Critical Dates, Rights, Obligations and Kick-out Dates

CPI, Percentage Rent and Other Escalations

Rent Bumps & Additional Rent Review

Lost Security Deposits and Letters of Credit

Notices & Reporting

Lease Abstracting and Validation

Lease File Organization and Maintenance

Negotiation and Collection of lease administration disputes with landlords

Summary

While many commercial real estate firms can handle the occasional (but important) space

transaction for Clients, not many have the depth, the credentials or the experience to represent the

needs imposed by the multi-location business model. McKinney Advisory Group has more than 30

years of demonstrated success.

Lease Auditing

Lease Auditing, also known as CAM Auditing or Operating Expense Auditing, is the detailed review

and comparison between the legal definitions in the lease and what a landlord may be charging for

occupancy cost. Most companies are overcharged for items they dont even know about.

How significant is portfolio administration for a typical Client? One way to answer that question is to

convert administrative savings into equivalent sales.


Recently, for example, McKinney Advisory Group obtained CAM and Work Letter

adjustments of almost $3 million on behalf of one client representing 15% of its base real

estate occupancy costs. At an 8% net income to sales ratio, this $3 million savings represents

the sales equivalent of adding $37.5 million in new revenue to the top line.

Portfolio Strategic Review

Best practices require that Clients with multi-location space footprints conduct a

periodic strategic review of their portfolio. This can be undertaken by McKinney along any

number of perspectives.

Scenario Analysis

Portfolio Strategy includes finding the right balance between leased space and owned space

and identifying and mitigating risk (including business continuity).

Addressing Potential Concerns

Based on our expertise, weve identified the following potential concerns and responses.

Concerns Opportunities and Benefits

Savings are too small to be meaningful

Too much time

Taking responsibilities for real estate undermines local control

Portfolio evaluation requires cost investment

The savings we can achieve through portfolio strategy and superior implementation can equal the value ofacquiring another division without the capital investment.

Attention to detail adds up.

McKinney team works with individual divisions and develops summaries and key decisions for headquartersreview and decision making.

One point of contact for Client corporate staff.

Cost savings identified are returned to individual divisions.

Individual division goals and priorities are primary business drivers tempered with consideration of corporategoals.

Initial corporate and major divisional interviews and portfolio research and evaluation for domestic locations.(Hourly rate dependent upon scale of review.)

Initial cost of portfolio review is earned back if we reduce space or avoid acquiring additional space. Pay rent orpay to save even more.

Individual transaction costs are compensated through brokerage fees and typically paid by landlords.

Lease Comparative Analysis

Summary of Alternatives

Key Lease Information

Rentable SF Usable SF Commencement Date Termination Date Lease Term (months)

Deal Points

Type of Lease Starting Rent Straight Line Rent Over Term Months of Rent Abatement Calendar Yr. Base Year Operating Expenses Estimated Operating Expenses $/rsf/year Construction Cost / rsf Landlord Const. Allowance / rsf

Tenant Paid Const. Cost / rsf

Rent Average Base Rent / rsf / year Average Gross Rent / rsf / year NPV - Base Rent / rsf / year NPV - Gross Rent / rsf / year Total Rent over Term

Occupancy Cost

Project Costs (Const., Moving, Start Up Costs) First Year Occupancy Cost Total Occupancy Cost over Term Average Total Cost / rsf / year

Average Monthly Occupancy Cost Average Annual Occupancy Cost NPV - Average Annual Occupancy Cost NPV - Total Occupancy Cost / rsf / year $/Seat/Yr

Net Effective Rate / rsf / year @ 8%

Net Effective Rate / Year @ 8%

NPV @ 8%

LL 1 Offer #1A

Address, State

120,000 109,091 3 / 2014 9 / 2024

127

Gross plus Elec $21.50 $22.72

7 2015 $8.00

$40.00 $40.00

$0.00

$22.72 $24.02 $14.79 $15.53

$28,850,000

$0 $1,820,200

$39,571,238 $31.16

$311,585 $3,739,015 $2,432,070

$20.27 $8,478

$29.91 $3,588,930

$25,739,404

LL 1 Offer #1B

Address, State

120,000 109,091 3 / 2014 7 / 2021

89


5 2015 $8.00

$40.00 $28.00

$12.00

$22.85 $23.71 $16.88 $17.46

$20,335,000

$1,440,000 $3,760,200

$28,592,396 $32.13

$321,263 $3,855,155 $2,900,643

$24.17 $8,742

$31.91 $3,829,618

$21,513,105

LL 2 Offer #1

Add ress, State

121,090 105,296 6 / 2014 5 / 2025

132


10 2014 $8.00

$40.00 $30.00

$10.00

$17.33 $18.76 $11.03 $11.83

$23,082,781

$1,210,900 $2,100,343

$32,977,904 $24.76

$249,833 $2,997,991 $1,945,195

$16.06 $6,798

$24.05 $2,911,685

$21,397,148

LL 3 Offer #1Address, State

135,056 125,052 6 / 2014 1 / 2025

128

Gross $17.50 $18.83

8 2014 $8.00

$40.00 $20.00

$20.00

$18.83 $20.21 $12.14 $12.93

$27,123,747

$2,701,120 $3,502,452

$31,812,691 $22.08

$248,537 $2,982,440 $2,000,160

$14.81 $6,763

$21.92 $2,960,024

$21,335,041

LL 4 Offer #1

Address, State

120,000 104,348 1 / 2014

12 / 2025

Gross $15.75 $17.28

2014 $8.00

$40.00 $30.00

$10.00

$17.28 $18.74 $10.67 $11.45

$24,880,000

$1,200,000 $2,590,500

$32,271,653 $22.41

$224,109 $2,689,304 $1,687,385

$14.06 $6,098

$21.77 $2,612,762

$20,248,620

Example

Corporate Counsel Lease Review

Detailed analysis of lease for LOI

Modification of document to tenant favorable language

Identification of real property site specific issues

Analyze non-standard terms and conditions

Quantify risks and obligations

Abstract pertinent provisions

Lease Audits & Portfolio Administration

Service Type Offered Brief Overview

Critical Dates Review and Maintenance

Lease Abstracting and Validation; Software System Set-up and Population

Review key dates and provide updates to client; provide reports of all lease data as requested by the client

Rent Escalation Review Assess accuracy of rent increases

Lost Security Deposits Review security deposit reconciliations from Landlord; ensure Tenant receives timely refunds and credits

Perform lease abstracts either in hard copy format or into the companys existing lease administration software

Service Type Offered Brief Overview

CAM and Operating Review operating expense billings for client

CPI, Porters Wages, Percentage Rent and Other

Invoices

Management and Administration Fees

Insurance

Calculate CPI Increases, Precentage rents, etc. and provide updates to client

Review Invoices presented to tenant and ensure compliant with lease

Utilities

HVAC (Overtime & Reimbursements)

Review pro-rata utility billings to ensure compliant with lease

Review after hours HVAC billings to ensure compliant with lease

Review management fee and administrative services billings to ensure compliant with lease

Capital Expenses Review landlord billings for capital expenditures to ensure they are allowable per lease

Review RE Tax billings and ensure Tenant is billed appropriately

Review operating expense billings and determine if Landlord is billing appropriately; Review Landlords Insurance requirements to Tenant against lease to ensure Tenant is only supplying what is required of them

Real Estate Taxes

Negotiations and Collection of Lease Administration

Square Footage Verification

Base Years and Gross-up Calculations

Calculate CPI Increases, Percentage rents, etc. and provide updates to client

Verify square footage matches lease document and is calculated based upon the

appropriate BOMA standards

Expense Ceilings and Adjustments

Ensure Landlords are using correct base year figures and grossing up lease per the terms

of the lease document

Ensure Landlords are appropriately accounting for any CAPs on operating expenses

Reciprocal Easement Agreements

Co-Tenancy and Percentage Rent

Tracking Tenant Improvement Work

Self-explanatory

Self-explanatory

FASB 13 Capital Lease Consulting

Prepare reconciliation packages to Landlord for Tenant Improvement Allowance

reimbursement

Analyze system needs for administration based upon changing laws

Lease Abstracting Lease Auditing

Total Operational Costs

At first glance, real estate costs may not appear to be large amounts. However, 9 times out of 10, obscure real estate costs are greater than the accounting presentation would indicate. Our in-house team members consist of legal, accounting, and lease audit specialists who perform detailed document reviews, lease audits, operating expense reconciliations, and identify costs to create flexibility, cash flow, and minimize overhead.

Like an iceberg, what is visible from the surface (the income statement - lease costs and depreciation) is not a true measure of real estate impact.

Underneath the surface, buried within other items are the impacts that best practice corporations capture as a part of the total cost of real estate operations.

Visible Costs Cost to Own or Lease

Rent Depreciation

Visible and Hidden Costs1. Visible Cost to Own or Lease Rent Depreciation

2. Cost to Operate Insurance, Real Estate Taxes, Utilities, Maintenance, Repair, Facilities Management, PhysicalSecurity and Project Management, CAM pass-thru

3. Cost to Provide Facility Services Janitorial, Food Service, Transportation, Mail Services, Other Services

4. Cost to Manage Locations Strategic planning, fixed asset accounting, environmental, health and safety, warehousing

The Incentive Process

Planning and RFP Preliminary Evaluation Client Requirements Project Definition RFP Process

Analysis & Initial Due Diligence Field Visits Narrow List Analytical Model

Finalist Evaluation and Selection Property Investigations Negotiations Final Selection

Incentive Negotiation and Documentation MOU or Development Agreement Real Estate Transaction Public Announcement Post Announcement Support

Importance of Disciplined Competition and Site Selection Process

1. Produces highest value of proposals of several rounds of negotiation

2. Quickly surfaces the most seriously interested locations

3. Best chance for obtaining coordinated/orchestrated offers from all agencies within a state

4. Best process for site selection other than EDIs which layers right on top of the location selection process

Potential OpportunitiesSite Selection & Incentives

McKinney Proterra transaction recognized in Site Selection for 250K R&D Facility with over $90 million in incentives.

Create multi-state competition for appropriate divisions to capture value in existing location

Respond to changes in customer structure

Significant tax savings and other benefits that go beyond real estate savings to include other savings

Credits & Grants

Exemptions & Discounts

Targeted Zones

Local Incentives

Sweeteners

Corporate Income

Tax Credits

Sales Tax Exemptions

Enterprise Zones

Tax Increment Financing

Closing Grants

Job Creation Grants

Energy Discounts

Other Special Designated Zones

(Ports, Brownfield, etc.)

Property Tax Abatements

Finance/Bond Assistance

Infrastructure Grants

Free/Discounted Land/Public

Land Disposition

Training Grants

Payment-in-lieu-of-tax (PILOT)

Misc. Other Grants and Assistance

Representative Clients

Troy, MI

Concord, Ontario

Addison, IL

Melrose Park, IL

Long Beach, CA

Orange County, CA

Rancho Dominguez,

CA Orange County,

CA Dallas, TX

Irvine, CA

Glendale, CA

Corporate Portfolios Managed

JP Morgan Chase

Citizen Communications

KIK Custom Products

NAL

Alberto Culver

Molina Healthcare

Union Supply Company

Caribiner International

Burnham Service

Company GTE

Select Assignments

Flagstar Bank - HQ

KIK Custom Products - HQ

NAL - HQ

Alberto Culver - HQ

Molina Healthcare - HQ

Applied Medical Resource Group - HQ

Union Supply Group - HQ

Trigem America - HQ Citizen Communications - HQ

Masimo Corporation- HQ

Christie Parker & Hale - HQ

120,000 Sq. Ft.

142,388 Sq. Ft.

201,110 Sq. Ft.

200,000 Sq. Ft.

460,000 Sq. Ft.

244,800 Sq. Ft.

114,920 Sq. Ft.

147,136 Sq. Ft.

225,000 Sq. Ft.

110,000 Sq. Ft.

42,112 Sq. Ft.

3

SUCCESS STORIES

4

SUCCESS STORIES

Team Member Bio Damian McKinney

Founder & CEO 562.889.2001 (ph)

858.519.3250 (fax)

dmckinney@mckinneyadvisory. com

License #00777218

Damian has 32 years of experience in national commercial real estate investment and consulting.

Damian began investing in value-add commercial real estate opportunities in 1985. Prior to investing in

value-add transactions, Damian had been recognized as one of the nations preeminent corporate

services advisors since 1979. His intellect and negotiating skills, combined with his experience in multi-

market real estate transactions, his relationship with governmental agencies, corporations (both

domestic and international), and national real estate brokerage companies have contributed to the

profitable acquisition of properties throughout the United States.

Areas of Expertise

From 1985 to present, Damian has been acquiring value-add real estate. Damian has extensive

experience in hospitality, multi-family, retail, commercial and industrial investments.

Value-Add Transactions

Distribution Center, Fort Wayne, Indiana (1,000,000 SF) Distribution Center, Metro Washington DC (660,000 SF) The Modern Honolulu, Honolulu, HI as the only 4 diamond boutique brand hotel in Hawaii (360-key hotel) The Wyland Waikiki Resort & Spa, Honolulu, HI (400-key hotel Airport Center, Honolulu, HI (110,000 SF office building The Cannery at Iwilei, Honolulu, HI (100,000 SF office/industrial project Waikalua Bayside Estates, Honolulu, HI (20-lot home site development New Phoenix Hotel - To be repositioned (100-key hotel) Sand Island Industrial Building, Honolulu, HI (54,000 SF)

Nationally, Damian has been involved in the acquisition of properties in Hawaii, California, Utah,

Illinois, Indiana, Ohio, Georgia, and Maryland that have a fair-market value in excess of $500 Million.

Client Representations

Ford, Boeing (formerly McDonnell Douglas), TRW, Northrop Grumman, Alberto

Culver, Hughes aircraft, Bell & Howell, U.S. Frieghtways, Emery Airfreight, Bekins,

Molina Healthcare, Proterra and BAX.

Service Specialization

Tenant Rep (Full Service), Economic Development Incentives Procurement,

Tenant Portfolio Administrator & Investment Sales Principal.

Associations & Accreditations

Education

University of Southern California, Bachelors Degree in Business

Administration, Finance Emphasis

Board Member and Founding Member - All Kids, Inc., Los Angeles Vice Chair of Board of Directors San Diego North Economic Council Vice Chair of Board of Directors San Diego Center for Children Board Member - Academy of Our Lady of Peace, San Diego Past Member - American Industrial Real Estate Association Board of Directors Member - Los Angeles American Cancer Society Past President of Board of Directors - Kids Included Together

Recognitions

2014 San Diego Daily Transcripts Top Influential 2014 Center for Wealth and Legacy Inspirational Award Winner

Five office building portfolio, Orange County, CA (220,000 SF)

Team Member BioJulie Dunlap

Corporate Real Estate Advisor & Portfolio Lease Administration

858.519.3247 (ph)

858.229.5597 (cell)

[email protected]

License #: #01243401

Julie joined McKinney Advisory Group, Inc. with over 20 years of commercial real

estate experience. She has extensive experience coordinating real estate transactions

with owners, real estate brokers, attorneys and investors. Julies paralegal

responsibilities include preparing and reviewing legal documents for managing

properties, acquisition and disposition of properties and corporate leasing

transactions. She has the responsibility of oversight of acquisitions and management

of assets in excess of $500 million. Julie has property management experience for

industrial and office projects. Her property management responsibilities include

preparing and negotiating leases, reviewing CAM reconciliations and annual

budgeting, asset management and maintaining tenant relations.

Areas of Expertise

Prepare and review acquisition and disposition documents, correspond with

attorneys, brokers, escrows and vendors to administer all steps in the development

and escrow processes, and prepare proposals and documentation to assist in

commercial real estate transactions.


Nationally, Julie has been involved in tenant representation, acquisition and disposition

of properties in Hawaii, California, Utah, Illinois, Indiana, Ohio, Georgia, and Maryland

that have a fair-market value in excess of $500 Million.


Christie, Parker & Hale, Union Supply Company, The Harbor Club, MMW

Inglewood, LLC, Nikkiso, Neighborhood House Association, and Gunderson

Dettmer


Investor Relations Coordinator, Tenant Rep (Full Service), Acquisitions

and Dispositions Administrator


Education

Colorado State University, B.S., Organizational Leadership and Management

Spokane College, A.A.S. Legal Sciences/Paralegal Certificate

Salesperson License | California Department of Real Estate

Notary Public State of California

The Harbor Club, San Diego, California | Board Member

American Lung Association Leadership Committee

Association of Legal Administrators | Member

Team Member BioPeter Quinn

Corporate Real Estate Advisor

858.519.3256 (ph)

858.864.8491 (m)

PQuinn@mckinneyadvisory. com

License #00806439

Peter has32yearsof experience in commercial real estate brokerage, development, investment

and consulting. Peter began developing and investing in commercial real estate opportunities

in 1985. Pursuit of joint venture development opportunities led to corporate real estate

assignments with Eastman Kodak, Texaco USA and Eli Lilly. These relationships and experience

led to the founding of Parkstone Companies, a provider of corporate real estate services to Fortune

500 companies, investors and major financial institutions, including Security Pacific Bank, Bank of

America, Wells Fargo, and Sumitomo Bank. Quinn led southern California based Voit

Development Companys efforts in San Diego from 2003 to 2007, becoming the third most

active real estate development company in the region while developing or acquiring nearly

1,000,000 square feet of office and industrial product.

Areas of Expertise

Since 1985, Peter has been assisting his partners, investors and clients on the development,

acquisition or repositioning of commercial properties. Peter has extensive experience in office,

industrial, multi-family, and retail investments.



American Hospital Supply, Hughes Corporation, Oakley, Eastman Kodak, Eli Lilly,

Texaco USA, CalFed Enterprises, Bank of America, Wells Fargo, Sumitomo Bank


Investment/ Development Advisory, Tenant Rep (Full Service), & Investment

Sales Prinicpal


Education

B.A. in Business Administration, San Diego State University, Finance Emphasis

Maritime AllianceBoard of Directors San Diego Chamber of Commerce Member San Diego North Economic Development Council Member Junior AchievementMentor Port Tenants AssociationMember InSoCal CONNECTSteering Committee

Canyon Plaza, Development, 168,000 SF Class A office, $45,000,000 project

WaterCourt, Reposition, 173,000 SF, $16,000,000 saved

Texaco USA, Portfolio Assessment and Business Plan Development, 75,000 acres, Unimprovedand un-entitled land, $120 million added balance sheet value

Chula Vista Commerce Center I, Industrial Condo Conversion, 78,614 SF, $6,000,000 added value

Chula Vista Commerce Center II, Industrial Condo, 184,136 SF (this is the largest industrialproject built in Chula Vista in 25 years), $19,000,000 project

Why Team with McKinney Advisory Group?

McKinney has chosen to take a Best Practices approach to the comprehensive real estate services, which it provides to all of its clients. These services include site selection, financial analysis, contract negotiations, and architectural, construction and project management coordination. Our philosophy embraces the idea that a lease and/or purchase is not finished until such time as our client vacates the premises. McKinney prides itself on taking the long term approach to relationship management, as well as uncustomary client service and support.

McKinney is a leading advisory firm when it comes to adding value to Corporate Americas bottom-line. McKinneys creativity, ingenuity, dedication, and tailored approach to its clients needs assures a maximum return to clients shareholders.

Full-service nationwide Tenant Representation brokerage services

Complete centralized lease administration and audit services

Thorough Economic Development Incentives (EDIs) benefits and savings analysis

Highly experienced, full service team dedicated to servicing our clients real estate

needs (often acting as our clients in-house real estate team)

Strategy development first, process implementation second

Virtual business partner with the ability to evaluate opportunities and challenges and

create innovative solutions

Provide counsel at all levels of real estate cycle and ensure real estate goals meet

the business goals

Reduce occupancy costs related to real estate

Comprehensive understanding of all real estate costs, both direct and indirect, results

in savings beyond the rental rate

Market Coverage

The Why Behind What we Do!

Volunteerism

Our teambuilding often takes the shape of volunteer opportunities. We get excited about supporting organizations

through walks, events, and gardening at the local homeless shelter. Many of our staff also serve on committees

for nonprofit philanthropic organizations, providing strategic support and fundraising assistance. Together we

have rebuilt a garden at the local homeless center, raised awareness and walked for local organizations, and

committed to feeding homeless teens on a recurring basis. We gather supplies, toys, as well as consult on strategy

and growth plans. We enjoy getting involved and lending a helping hand whenever we can.

Annual Charity Event

Our signature event each year is our Annual Holiday Event. McKinney Advisory Group organizes and supports,

with the help of local sponsors, an annual giving back event. We invite top CEOs and decision leaders of San Diego

to meet four outstanding nonprofits. Each guest is given a $100 voucher to donate to the charity of their choice.

We bring together like-minded people who care about philanthropy and the San Diego community. This event is

not about the funds raised, or sales presentations, rather the invaluable connections made and celebration of

giving.

We prefer working with companies and nonprofits who are changing lives and creating a positive impact for their

customers or causes they serve. If you feel you are one of those nonprofits or companies that fit into our model we

would love to partner with you to make a difference. We continue to better our services in real estate learning more

about new companies and social missions along the way. We enjoy working on projects that leave the community and

families they touch in a better way.

Our company culture at McKinney Advisory Group is not like many other

firms. We believe in our sense of purpose and commitment to making the world

a better place. Our goal is to help people and companies achieve their visions. This

might sound fluffy or too good to be true so let us explain how we work

differently.

Relationships

McKinney Advisors are truly advisors to our clients. Our clients are people with

dreams and goals. Our clients have families, support other families and are part of

their communities. We understand our clients responsibility to others which

translates to part of our strong sense of fiduciary responsibility to our clients. Our

legal obligation to our clients extends far greater than the best recommendation, it

is a relationship from which we both grow and benefit.

Servant Leadership

With our company and communities, we strive to be Servant Leaders. Servant

Leadership is an ongoing commitment to work as a team that serves each other

and the community. We support our team in continuing education,

family, board of director duties, and the best part is, our clients receive the

benefit of teamwork with multiple strengths rather than just one broker. Servant

Leadership is at the heart of who joins McKinney Advisory Group at every level.

Our team comes to work for McKinney Advisory Group because they believe in

serving others. Our culture is a dedication to doing the right thing, committing to

achieving our clients visions, and making a positive impact in the world.

Partnering with Nonprofits

Our Corporate Social Responsibility is our platform for everything we do.

McKinney Advisory Group seeks to enhance the bottom line and social

impact of nonprofits in our community. Through our business relationships we

have supported many nonprofits with our gifts of time, talent and treasure.

Our advisors are also encouraged and supported as they sit on many nonprofit

Board of Directors. We have a dedicated individual in our staff to assist with

our commitments to nonprofits and make sure we are utilizing our resources to

meet all our nonprofit partners needs effectively.

Founders Letter

Dear Prospective Partner, Thank you for taking the time to get to know McKinney Advisory Group. First, you should understand why we work in commercial real estate, which

is the opportunity to create meaningful relationships and give back to the community. McKinney Advisory Group is founded on the principle that the more

success we have as a company the more we can give back to others. We work as a team to better serve our clients as well as enrich our communities through

volunteering, board memberships and strategic partnerships with nonprofits.

The way in which we practice real estate at McKinney Advisory Group is different. Too often, commercial real estate transactions end when a tenant is handed

the keys to their new space. A typical broker believes that their job is done after closing and they are on to the next deal. However, we

see the closing of one transaction as just the beginning of the next. At McKinney Advisory your competitive advantage is our long-term commitment. We have

enjoyed 30+ year relationships with our clients and believe trust is the key to any successful business venture. Our relationships are built on listening, understanding, continuously

engaging with our clients, and executing a customized strategy to add to their bottom line.

and executing a customized strategy to add to their bottom line.

Time and again I hear our clients say "You really are advisors!" This rings true with everyone at McKinney Advisory. Each advisor on our team brings a high level of competence,

ethics, and a special skill set to every assignment. Our in-house brokers, property managers, legal counsel, project managers, portfolio administrators, and financial analysts pride

themselves in finding customized solutions and creating value-add services for our clients. Further, we seek to enhance the traditional broker representation model by providing

many of our services at no extra cost to our clients.

Whatever your passion, your business, your philanthropic endeavors, we are confident in creating a customized solution to fit your needs.

Yours Truly,

Damian McKinney

Founder and CEO

[email protected]

Our relationships are built on listening, understanding, continuously engaging with our clients,

McKinney Advisory Group Introduction

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