UKIAH

Ukiah Shopping Center (Vacant Land) Ukiah, CA Site: +/- 15 acres approximately Tenant: Costco (pending) (NASDAQ: COST) Status: Sold to Local Redevelopment Agency

Investment Strategy: In 2007, TKH principals, Anne Keshen and Terrence Tallen purchased 15 acres of “automotive zoned” land located directly on Highway 101 and Airport Park Boulevard in Ukiah, CA, a highly visible location at the Northern gateway to CA’s wine country. Tallen & Keshen Holdings went through the public entitlement process to change the permitted use from automotive retail to general retail/commercial and successfully completed the rezoning of the property in 2007, achieving a unanimous vote from the Ukiah City Council. The more comprehensive retail/mixed use rezoning immediately increased the property value by allowing for a variety of uses including retail, office, residential and industrial. All entitlement strategies and negotiations were performed by the principals of TKH without outside legal counsel. The property subsequently appraised for an increased value of 150% of the original purchase price. TKH negotiated with a number of national credit tenants including: Kohl’s, Target, Best Buy, Costco, Gottschalks, Petco and others to bring these key uses to the City of Ukiah while aggressively competing against Developer’s Diversified planned redevelopment of the shuttered Masonite Industrial plant called Mendocino Crossings. Costco negotiated a letter of intent with TKH for this property. TKH overcame the competitive obstacles of the neighboring project and developed a number of compelling site plans involving assemblages of neighboring properties owned by both public and private stakeholders. The site plans and the value of our prospective retailers was a catalyst for the City of Ukiah Redevelop Agency to purchasing the property from TKH in 2009. Conclusion: TKH is pleased to have made a significant initial investment in the City of Ukiah and believes that the combination of the City’s leadership and TKH’s value creation expertise, market knowledge and retailer relationships will create significant long term value for the local community.