Economic & market indicators

Valuation Insights & Perspectives, Summer, 2008

Market Rates and Bond Yields--%

                        June    Dec.    June     Dec.    June    June
                        2008    2007    2007     2006    2006    2005

Reserve Bank            2.25    4.83    6.25    6.25    6.02    4.01
Discount Rate

Prime Rate              5.00    7.33    8.25    8.25    8.02    6.01
(monthly average)

Federal Funds Rate      2.00    4.24    5.25    5.25    4.99    3.04

3-Month Treasury Bills  1.86    3.00    4.61    4.85    4.79    2.97

6-Month Treasury Bills  2.13    3.23    4.76    4.88    4.97    3.13

3-Month Certificates    2.76    5.02    5.33    5.32    5.35    3.38
of Deposit

LIBOR-3 month rate      2.95    5.17    5.35    5.35    5.38    3.36

U.S. 5-Year Bond        4.37    3.49    5.03    4.53    5.07    3.77

U.S. 10-Year Bond       4.78    4.10    5.10    4.56    5.11    4.00

U.S. 30-year Bond *     5.12 *  4.53 *  5.20 *  4.68 *  5.15 *  4.35 *

Municipal Tax Exempts   4.50    4.23    4.34    3.76    4.36    4.08
(Aaa) [dagger]

Municipal Tax Exempts   4.92    4.58    4.65    4.14    4.88    4.43
(A) [dagger]

Coroporate Bonds (Aaa)  5.68    5.49    5.79    5.32    5.89    4.96

Corporate Bonds         6.43    6.19    6.33    5.78    6.39    5.33
(A) [dagger]

Corporate Bonds (Baa)   7.07    6.65    6.70    6.22    6.78    5.86

Stock Dividend Yields--%

Common Stocks--500      2.15    2.06    1.81    1.79    1.96    1.83

As of April 2006, the Fed went back to reporting 30-yr rates; the
historical data is 20+ year rates. A factor for adjusting the daily
nominal 20-year constant maturity in order to estimate a 30-year
nominal rate can be found at www.treas.gov/offices/domestic-
finance/debt-management/interest-rate/ltcompositeindex.html.
(Source: Standard & Poor's)

Other Benchmarks

               June      Dec.    June      Dec.     June      June
               2008     2007     2007      2006     2006      2005

Industrial     111.7   114.1    113.4 **  112.2 **  111.9 **  108.3 **
Production     **       **
Index
[paragraph]
**

(Federal
Reserve
2002=100)

Unemployment    5.5     5.0      4.5        4.5       4.6        5.0
(%)
[paragraph]

Monetary
Aggregates,
daily avg.

M1,          1,385.6  1,364.2  1,362.9    1,365.7    1,369.9   1,368.5
$-Billions

M2,          7,687.2  7,447.1  7,241.2    7,021.0    6,829.9   6,509.8
$-Billions

Member Bank
Borrowed
Reserves

$-Billions    N/A      N/A      0.187      0.191      0.253     0.249
##

Consumer
Price Index

All Urban     218.8    210.0    208.4      201.8      202.9    194.5
Consumers

** On November 7, 2005, the Federal Reserve Board advanced to 2002 the
base year for the indexes of industrial production, capacity, and
electric power use. This follows the December 5, 2002, change to a 1997
baseline, from the previous 1992 baseline. Historical data has also
been updated.
## As of March 2008, the Federal Reserve no longer supplied the total
reserves.

Per Capita Income

Per Capita       1Q08    4Q07    1Q07    4Q06    1Q06    4Q05    1Q05
Personal
Disposable
Income

Annual Rate in  34,475  34,128  33,270  32,626  31,763  31,320  30,161
Current $s

Savings as %      0.2     0.0     1.0     0.4     0.9     0.8     1.0
of D.P.I.
[dagger]
[dagger]

KORPACZ REAL ESTATE INVESTOR SURVEY[R] NATIONAL MARKET INDICATORS
SECOND QUARTER 2008

                       Regional Mall               CBD Office

                    2nd Qtr      1st Qtr      2nd Qtr      1st Qtr
                     2008         2008         2008         2008
Discount Rate
(IRR) (a)
Range (%)         7.00-11.00%  7.00-11.00%  6.00-11.00%  6.00-10.00%
Average (%)          8.73%        8.72%        8.04%        7.91%
Change (b.p.)                      +1                        +13

Overall Cap Rate
(OAR) (a)
Range (%)         5.00-9.50%   5.00-9.50%   4.50-10.00%  4.50-9.00%
Average (%)          6.71%        6.68%        6.68%        6.63%
Change                             +3                        +5

Residual
Cap Rate
Range (%)         6.00-10.00%  6.00-10.00%  6.00-10.00%  5.75-9.50%
Average (%)          7.38%        7.38%        7.53%        7.29%
Change                             0                         +24

                       Warehouse                Apartment

                 2nd Qtr      1st Qtr      2nd Qtr      1st Qtr
                  2008         2008         2008         2008

Discount Rate
(IRR) (a)
Range (%)      5.50-10.00%  5.50-10.00%  6.00-10.50%  6.00-10.50%
Average (%)       7.68%        7.67%        8.16%        8.15%
Change (b.p.)                   +1                        +1

Overall Cap
Rate (OAR) (a)
Range (%)      5.00-8.50%   5.00-8.00%   3.50-8.00%   3.50-8.00%
Average (%)       6.56%        6.47%        5.75%        5.79%
Change                          +9                        -4

Residual
Cap Rate
Range (%)      5.50-8.50%   5.50-8.50%   4.50-8.50%   4.50-8.50%
Average (%)       7.18%        7.13%        6.69%        6.56%
Change                          +5                        +13

a. Rate on unleveraged, all-cash transactions

Definitions:
b.p. basis points
Discount Rate (IRR). Internal rate of return in all-cash transaction,
based on annual year-end compounding
Overall Cap Rate (OAR). Initial rate of return in all-cash transaction
Residual Cap Rate. Overall capitalization rate used in calculation of
residual price; typically applied to the NOI in the year following the
forecast
Source: KORPACZ REAL ESTATE INVESTOR SURVEY. Personal survey of a cross
section of major institutional equity real estate market participants
conducted during April 2008 by PricewaterhouseCoopers LLP. For complete
information on results of these and other markets covered in the
Survey, contact PricewaterhouseCooopers LLP, PO Box 988; Florham Park,
New Jersey 07932

Conventional Home Mortgage Rates by Metropolitan Area (%)

                    2nd Q  2nd Q  2nd Q
                    2008   2007   2006

Atlanta             6.11   6.34   6.68

Boston #            5.99   6.31   6.44

Chicago #           6.11   6.62   6.73

Cleveland #         6.07   6.37   6.55

Dallas #            6.19   6.44   6.74

Denver #            6.11   6.39   6.65

Detroit #           6.17   6.73   6.73

Houston #           6.23   6.61   6.81

Indianapolis        6.33   6.65   6.79

Kansas City         5.93   6.24   6.41

Los Angeles #       6.16   6.39   6.58

Miami #             6.34   6.68   6.84

Milwaukee #         6.27   6.52   6.58

Minneapolis         6.11   6.37   6.52

New York #          6.09   6.34   6.57

Philadelphia #      6.09   6.34   6.81

Phoenix             6.27   6.44   6.71

Pittsburgh          5.93   6.19   6.35

Portland #          6.11   6.27   6.55

St. Louis           6.22   6.53   6.72

San Diego           6.17   6.32   6.52

San Francisco #     6.19   6.37   6.55

Seattle #           6.06   6.42   6.52

Tampa               6.26   6.54   6.79

Washington, D.C. #  6.17   6.47   6.82

Conventional Home Mortgage Terms

                    June    Dec.    June    Dec.    June    June
                    2008    2007    2007    2006    2006    2005

New House Loans-
U.S. Averages

Interest rate (%)    6.13    6.21    6.54    6.37    6.79    5.76

Term (years)        29.1    29.2    29.5    29.3    29.4    29.2
[paragraph]

Loan ratio (%)      75.6    79.4    76.7    74.9    75.0    74.4

Price (thou. $)    352.7   347.7   357.9   348.6   355.0   329.9

Used House Loans-
U.S. Averages

Interest rate (%)    6.28    6.31    6.63    6.45    6.69    5.71

Term (years)        28.3    28.9    29.7    29.1    28.8    28.3

Loan ratio (%)      77.3    80.6    80.4    78.9    76.5    73.4

Price (thou. $)    310.3   280.0   297.9   292.1   306.9   302.9

[paragraph] Seasonally adjusted
[dagger] Source: Moody's Bond Record
[dagger][dagger] Revised figured used when available
# Consolidated Metroplitan Statistical area