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1 Keegan & Coppin REAL ESTAT E KEEGAN & COPPIN COMPANY, INC. ONCOR INTERNATIONAL Commercial Real Estate Services Prime Commercial Property For Sale Income Property with Future Expansion/Re-use or Development Potential 5,400± s f of Sp a c e Available for Lease Do No t Di s t u r b Te n a n t s! 60 Mill Street Healdsburg, California Location: Near downtown Healdsburg and across from Safeway Market Place APN # Land Area: approx. 3 acres (134,960 sf) Approx. 29,000 sf of Income Producing Buildings Zoning: MU - Mixed Use Potential Re-Zoning: The city of Healdsburg Planning Department is interested in other commercial uses and developments that can include retail/residential mixed-use or retail/ office mixed-use. There is also potential for a hotel/resort development. Sa l e Pr i c e: $5,950,000 Space Available for Lease: 5,400± sf Lease Rate: $.60 Gross plus Utilities Vicinity Map Contact: Marshall Kelly, Broker Associate Dino D Argenzio, Partner KEEGAN & COPPIN COMPANY, INC. ONCOR INTERNATIONAL 1355 North Dutton Avenue Santa Rosa, CA (707) Fax (707) mkelly@keegancoppin.com Dargenzio@KeeganCoppin.com O N C O R I N T E R N A T I O N A L Offices in 220 Cities: UNITED STATES, CANADA, DENMARK, FRANCE, GERMANY, INDIA, AUSTRIA, RUSSIA, CHINA, AUSTRALIA, UNITED KINGDOM, THE NETHERLANDS, MEXICO, JAPAN, ITALY, SPAIN, SWITZERLAND, CZECH REPUBLIC, BELGIUM, POLAND, NORWAY, UKRAINE, SWEDEN, FINLAND, HUNGARY, BRAZIL, CHILE, ARGENTINA, IRELAND The above information, while not guaranteed, has been secured from sources we believe to be reliable. This is not an offer to sell or lease and is subject to change or withdrawal. An interested party should verify the status of the property and the information herein.

2 KEEGAN & COPPIN COMPANY, INC. - PLEASE DO NOT DISTURB TENANTS! - COMMERCIAL REAL ESTATE Address: 60 Mill Street x Healdsburg Ave. Area: ± 3 Acres with approximately 29,000 sf of income property City: Healdsburg, CA Price: $5,950,000 AP: Land Price psf: Building Price psf: Approx. $45.00/sf Approx. $205 psf Rentable sf: 5,400± sf Zoning: MCI (mixed commercial, light industrial) Asking Rent: $.60 psf Gross plus Utilities Description of Site: This is one of the premiere sites for redevelopment in the Downtown Healdsburg area. There are existing tenants in place providing income to a buyer until a future development is ready to begin. Current on-site improvements comprised of ± 15,000 sf former hardware store, ± 10,000 sf metal industrial type building and several other freestanding buildings; all are rented on a short term basis; one tenant has less than 3 years remaining. Current estimated gross income is ±$260,000/annually. Note: Dedication of ±210 sf of Mill Street frontage has not been finalized and current assessor s parcel map shows the parcels going to the center line of Mill Street; therefore buyer shall perform its own land and building survey and verify sizes. Zoning: Current zoning is MU (Mixed Use). If you require further information on the above designation contact us to you the excerpts from the zoning ordinance or contact the City of Healdsburg (707) Description of Location - Area: The property is located within walking distance of Downtown Healdsburg Square, Hotel Healdsburg, restaurants and wine tasting rooms and across the street from the 85,000 sf Safeway Regional Center. Utilities: The property has PG&E, municipal water from City of Healdsburg and sewer to the site. Development Potential: Subject to formal city rezoning and site plan approvals, the City of Healdsburg Planning Department will consider a new resort hotel, convention development, retail development or mixed use project combining retail, residential and/or office buildings. The property is not being offered for sale based upon actual building or land sizes. Contact: Marshall Kelly, Broker Associate or Dino D Argenzio, Partner KEEGAN & COPPIN CO., INC North Dutton Avenue Santa Rosa, CA (707) * Fax (707) MKelly@KeeganCoppin.com or Dargenzio@KeeganCoppin.com Website: O N C O R I N T E R N A T I O N A L Offices in 220 Cities: UNITED STATES, CANADA, DENMARK, FRANCE, GERMANY, INDIA, AUSTRIA, RUSSIA, CHINA, AUSTRALIA, UNITED KINGDOM, THE NETHERLANDS, MEXICO, JAPAN, ITALY, SPAIN, SWITZERLAND, CZECH REPUBLIC, BELGIUM, POLAND, NORWAY, UKRAINE, SWEDEN, FINLAND, HUNGARY, BRAZIL, CHILE, ARGENTINA, IRELAND

3 60 MILL STREET HEALDSBURG, CALIFORNIA DO NOT DISTURB TENANTS!!!!!! Oakville Grocery Safeway Center SITE Keegan & Coppin REAL ESTATE Contact: Marshall Kelly, Broker Associate Dino D Argenzio, Partner KEEGAN & COPPIN COMPANY, INC North Dutton Avenue Santa Rosa, CA (707) Fax (707) Website: The above information, while not guaranteed, has been secured from sources we believe to be reliable. This is not an offer to sell or lease and is subject to change or withdrawal. An interested party should verify the status of the property and the information herein.

4 60 MILL STREET HEALDSBURG, CALIFORNIA DO NOT DISTURB TENANTS!!!!!!

5 60 MILL STREET HEALDSBURG, CALIFORNIA Site Plan DO NOT DISTURB TENANTS!!!!!! Mill Street

6 60 MILL STREET HEALDSBURG, CALIFORNIA Zoning Map DO NOT DISTURB TENANTS!!!!!!

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8 The city of Healdsburg has become one of the most desirable places to live or visit in the North Bay area. It has been described by some as the Aspen of the wine country. Located only 65 miles north of San Francisco, Healdsburg has become one of the Wine Mecca s of The United States. Surrounded by vineyards, Healdsburg encompasses a 3.56 square mile area with an estimated local population of 11,700. The larger surrounding trade area comprises a trade population of over 50,000. In town businesses employ about 5,000 people. The area has a mix of traditional classic homes and more modern housing plus rural housing and apartments and town homes. The major industries are agriculture/wine, lumber, tourism and small businesses. Tax revenues for the period were $2,818,000. Hotel/Motel bed taxes for the fiscal year ending June 2006 were $1,100,000. The average age of Healdsburg residents is 37 years. This compares to the larger demographic of Sonoma County which comprises 1,512 square miles and 458,000 people with an average age of 34 which reports tax monies derived from bed taxes of over $2,200,000 last year. The downtown area has dozens of quality restaurants, wine tasting establishments, and a large variety of retail shops, art galleries, a high-end market (Oakville Market) and numerous other downtown attractions surrounding the Park Square.

9 Overnight stays feed economy Upscale clientele propels bed taxes near record highs as rates, occupancy, rooms on rise Arlene Dawson of Independence, Colo., rests with her dog, Toby, after touring shops around the Healdsburg Square on Thursday. JOHN BURGESS / The Press Democrat By Clark Mason and Martin Espinoza THE PRESS DEMOCRAT At Les Mars, Healdsburg s chic new hotel, room rates start at $525 a night, reflecting an increasingly upscale tourist trade that has helped the city collect a record $1.1 million in bed taxes for the fiscal year that ended in June. It s a similar story in Sonoma, where bed-tax revenues are expected to reach an all-time high of $2.3 million this year, propelled by higher room rates and increasing occupancy at hotels, motels and bed-and-breakfasts. Despite rising gasoline prices and escalating room rates, tourists appear willing to pay top dollar to visit Sonoma County Wine Country. In Healdsburg, city officials and business owners notice that tourists are spending more - whether it s for luxury rooms, gourmet dining or cases of wine. We are seeing a wealthier clientele coming in, said Herb Liberman, the city s economic development director. Rich tourists are coming to Healdsburg, agreed Chris Bryant, owner of three trendy clothing stores around Healdsburg Plaza. And the people with money to spend are not so concerned about spending it. Visitors staying in hotels and motels are the single largest source of tourism spending in Sonoma County, contributing $450 million of the $1 billion tourism segment of the county economy. In Sonoma, tax monies derived from overnight stays have become the most significant source of general fund revenues, topping $2.2 million last year. In fact, transient occupancy tax revenues represent a quarter of yearly general fund dollars. The growth is due to a dramatic increase in the number of guest rooms in Sonoma in recent years as well as increases in both the average room rate and occupancy rates. In 1999, $466,419 was collected by the transit occupancy tax, compared to roughly $2.3 million that is expected to be collected this year, according to Michael Fuson, Sonoma s city manager. We re seeing a lot more bodies, said Michelle Heston, regional director of public relations for Fairmont Hotels, which runs the upscale Fairmont Sonoma Mission Inn & Spa and completed a $65 million restoration of the 226 guest rooms and 60 suites in April. Heston said that since Fairmont took over the Sonoma Mission Inn in 2002, average room rates have grown by 16 percent, while occupancy rates have grown 24 percent. The outlook appears bright for Sonoma County as a whole. The average cost of a Sonoma County hotel room rose more than 12 percent during the first five months of 2006, according to an industry survey. That s the greatest increase of any county in Northern California. In May, a night at a Sonoma County hotel averaged $133, compared with $168 in San Francisco and $177 in Napa County, according to a survey by PKF Consulting. Sonoma County s hotel occupancy rates also rose appreciably in May. Some 74 percent of Sonoma County hotel rooms were full in May, compared to 68 percent a year ago. Stephen Dale, vice president of finance for the Best Western Sonoma Valley Inn and president of the Sonoma Valley Visitors Bureau, said that business has been improving noticeably since He said people are still traveling, even though the price of gasoline has increased dramatically. Not everyone has such a rosy outlook. Bill Bloom, the general manager of Sonoma s historic MacArthur Place Inn & Spa, said pent-up demand after Sept. 11, 2001, resulted in a lot of business in But the first half of the current year has not measured up, he said, and he blames it on high gas prices. But in Healdsburg, no one seems to be crying poor. Bryant, the owner of three clothing shops, has out-of-town customers willing to drop some serious money, like $600 for a skirt at her One-O-One store, which offers the latest European fashions. She sees more well-heeled tourists from major metropolitan areas, such as Atlanta or Boston. But many come from the greater Bay Area, too. Healdsburg also has become a culinary destination, with a growing number of restaurants that attract gourmets. You have to have a good product, there are so many choices, said George Meilleur, a waiter for 10 years at Bistro Ralph. While the hotel occupancy rate has remained essentially the same in Healdsburg over the past two years - at 56 percent - new rooms have been added, bringing the total to more than 330 rooms. And the average room rate went up almost 18 percent, from $166 to $195 over the past year, according to figures compiled by the city s finance department. Les Mars, which opened last year, and the swank Hotel Healdsburg, which opened in 2001, are a big reason Healdsburg has doubled the total amount it collected in bed taxes over the past five years. Total bed taxes - derived from the 10 percent levy the city collects on each room - have gone up steadily every year since 1996, reflecting the thriving tourism trade. It s something city leaders love to see. Whenever we have a head in a bed, the community benefits, said Mayor Mike McGuire. The bed-tax revenues go toward the city s park and recreation programs. This month, the tax will increase to 12 percent to help subsidize the city s public safety budget. Last changed: Jul 26, 2006 The Press Democrat.

10 KEEGAN & COPPIN COMPANY, INC. INCOME AND EXPENSE ANALYSIS FOR IMPROVEMENTS AT 60 MILL STREET, HEALDSBURG, CA APPROXIMATELY 29,000 sft BUILDINGS ON APPROX. 3 ACRES Current Gross Income (See Rent Roll Attached) (With Landlord currently paying all expenses including utilities) Approximate Current Total Income $ 233,748 / year Estimated Landlord Operating Expenses (Approx.)New taxes <$69,000> Insurance <$7,600> Estimate Current Utilities <$41,483> Management (4%)<9,350> Vacancy (4%)<9,350> Total Expense $136, Estimate Net Income $96,965/Yr (After Tax Increase) Estimate net income after tax increase ±$96,965/Yr Note: 60 Mill St is being offered as adaptive re-use or eventual land development potential property. The information above is provided for a short term income potential of the property for further information contact. Contact: Dino D'Argenzio, Partner Marshall Kelly 1355 N Dutton Ave 1355 N Dutton Ave Santa Rosa, CA Santa Rosa, CA (707) x 143 (707) x 177 Mobile: (707) mkelly@keegancoppin.com dargenzio@keegancoppin.com O N C O R I N T E R N A T I O N A L Offices in 220 Cities: UNITED STATES, CANADA, DENMARK, FRANCE, GERMANY, INDIA, AUSTRIA, RUSSIA, CHINA, AUSTRALIA, UNITED KINGDOM, THE NETHERLANDS, MEXICO, JAPAN, ITALY, SPAIN, SWITZERLAND, CZECH REPUBLIC, BELGIUM, POLAND, NORWAY, UKRAINE, SWEDEN, FINLAND, HUNGARY, BRAZIL, CHILE, ARGENTINA, IRELAND

11 KEEGAN & COPPIN COMPANY, INC. 60 Mill St, Healdsburg, CA Current vs Proforma Income Summary A B C CURRENT TENANTS 60 MILL ST. HEALDSBURG ESTIMATED APPROXIMATE RENTAL AREA (to be verified) ESTIMATED RENT PSF (GROSS) ACTUAL CURRENT GROSS MONTHLY RENT AS PROVIDED BY OWNER (From which Landlord CURRENT LEASE TERM EXTENSION OPTIONS pays utility costs ) Beyond Skin 600 sft $1.15 psft $700 per month M/M None Salon Studio 700 sft $1.40 psft $975 per month 6/30/08 None Hot Dogs (Goofys) 900 sft $1.33 psft $1,200 per month 2/28/08 None Sprouts 850 sft $1.02 psft $870 per month M/M None Costa Rican Imports 450 sft $2.22 psft $1,000 per month M/M None Consignment 1,200 sft $1.52 psft $1,820 per month M/M None Flower Shop 400 sft $1.80 psft $750 per month M/M None Boat Storage ± 5000 sft $0.57 psf $925 per month M/M D Misc. Storage Shared Storage* * $500 per month Antique Coop ± 10,000 sft $57 psft $5,700 per month M/M None E Healdsburg Gymnastics ± 5,400 sft $.56 psft $3,050 per month 8/09 w/5% Increase/Yr None VACANT ± 5,400 sft None M&M Autobody ± 3,600 sft plus $.49 psft $1,989 per month M/M None Approx. 29,700 sft ±$19,479/Month Total Rents Buildings on ± 3.03 acres X 12 (building size is est.) TOTAL $233,748/Year None SEE PROFORMA ATTACHED All current rents for this location are below market, and most rentals are monthly, except for Water and sewer is supplied to all tenants from City of Healdsburg. Rents also include PG&E, at Landlords loss, which is approximately ($.12) twelve+ cent margin, the projected monthly potential rents exclude utilities- which should be paid by all Tenants. * Boat Storage building is only about 50% leased The above information, while not guaranteed, has been secured from sources we believe to be reliable. This is not an offer to sell or lease and is subject to change or withdrawal. An interested party should verify the status of the property and the information herein.

12 SONOMA COUNTY RETAIL SPACE LEASES/COMPS Revised 11/08 1,000 4,000 s.f. LOCATION APPROXIMATE TRIPLE NET RENT LOCATION DESCRIPTION/LEASE DATE SIZE & TENANT / USE MONTHLY STARTING RATE 1791 Marlow Road, Safeway-Marlow Ctr. 1,985 s.f. - Starbuck s Coffee $2.65 psf NNN In-line space (2003 Lease) Santa Rosa (10 year Lease started 2003) 1017 Steele Lane x Cleveland Avenue 1,250 s.f. - Johnny Java s $3.20 psf NNN (10 Year Lease) Freestanding corner building (Mid-2001 Lease) Mendocino Market Place (Safeway Center 1,200 2,500 s.f. $3.50 psf NNN (5-10 Year Leases) In-line retail space Panda Express Blockbuster Video (as of 8/2004) (end cap spaces are approximately 15% higher rent Porter Street BBQ Nail Salon than inline spaces) UPS Mail Center Dentist Leases Great Clips Baja Fresh Redwood Credit Union Cellular World LA Weight loss Shiloh Center, 6580 Hembree Lane Windsor 1,200 2,800 s.f. spaces $ $2.85 psf NNN Period Leases Retail Shops Shiloh Center, Windsor Panda Express 2,400 s.f. $3.25 psf NNN 2007 Leases 8945 Brooks Road, Windsor Redwood Credit Union 3,500 s.f. $2.45 psf NNN September 2005 Lease Fidelity National Title Co. 2,400 s.f. $2.60 psf NNN September 2005 Lease Stony Point Plaza, 1,000-3,200 s.f. spaces psft/nnn July 2007 Leases 740 Stony Point Rd (x) Sebastopol Rd. Subway Juice Shack Fed Ex/Kinks Great Clips Radio Shack Panda Express Washington Mutual Starbucks 269 Aviation Blvd/Airport District Starbucks Subway 2500 Mendocino Avenue, Santa Rosa Addison Avenue Credit Union Pearson & Company Railroad Square Area Leases Sotheby s Real Estate Charles Schwab Financial Wine spectrum Sushi To Dai For Petaluma: Adobe Creek Parkway Cleaners Starbucks 328 Healdsburg Ave Healdsburg 1,900 s.f. 1,200 s.f. 2,931 s.f. 1,444 s.f. 201 Davis St S.E.C. 4 th x Davis $4.20 psft/nnn $3.25 psft/nnn $3.00 psf NNN $3.25 psf NNN $ psft NNN March 2007 Lease March 2007 Lease sft $ sft/nnn Leases 4485 sft $2.50 sft/nnn 2007 Leases Ten (10) years leases commencing in E. Washington Petaluma 1500 sft (JAMBA) 1460 sft (Pizza) $3.25 sft/nnn $3.10 sft/nnn 2007 Leases