The Goddard School $2,316,000 / 9.5% CAP S. Ridge Road, McKinney, TX North Dallas Suburb. Lake Forest Crossing.

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1 Rep. Photo Average HH Income (3-Mile Radius) $120,657 Dallas, TX 12 Miles South PROPOSED Ridge Road McKinney Ranch Parkway Lake Forest Crossing The Goddard School 3952 S. Ridge Road, McKinney, TX North Dallas Suburb brand NEW 15-YeaR Net Lease w/ 10% Rent bumps Every 5-Years goddard schools ranked #1 child care franchise (8th Consecutive year) high growth location: 70,000+ FAmilies in 3-Mile radius Strategic location along major commute thoroughfare near municipalty center & retail corridor (wal-mart supercenter) market leader: 320+ Franchisee schools in 37 states across the US Mckinney #9, Forbes (2009) americas 25 best places to move Mckinney ranked fastest growing U.S. city & 2006 McKinney ranked in the top 100 wealthiest cities in the nation US census American business journal $2,316,000 / 9.5% CAP Exclusive Listing Agent: Joe Caputo (415) joe@exp1031.com EXP REALTY ADVISORS HQ: 118 East 28th Street #808 New York NY T: (212) F: (212)

2 The Goddard School

3 Purchase Price: $2,316,000 CAP Rate: 9.5% Lease Term: 15 Years Building Area: +/- 8,068 SF Land Area: +/ Acres Lease Type: Double Net* Rental Increases: 10% Every 5-Years Occupancy: 100% Year Built: 2009 * Roof & Structure - HVAC Maintained By Landlord After Year-10 EXP Realty Advisors is pleased to present for sale a brand new The Goddard School child care facility located within one of the fastest growing cities and county seat of one of the wealthiest counties in the United States. The subject property consists of a brand new building of approximtely 8,068 square feet on approximtaely 1.44 acres. This offering gives investors the unique opportunity to purchase a brand stabilized asset, leased to an established day care provider, within a rapidly expanding family oriented community. The US Department of Education shows 13M children under the age of six are enrolled in child care making it one of the fastest growing service industries in the US. Investment Highlights New 15-Year Double Net Lease, w/ 10% Increases Each 5-Years Lease Includes Personal Guarantees From Franchise Operators Market Leader: 320+ Franchise Owned Schools in 37 States Ranked #1 Child Care Franchise For 8 Consecutive Years Adjacent to Wal-Mart Anchored Shopping Center 10 Public Schools in a 3-Mile Radius to 16 Child Care/Pre-Schools in 15-Mile Radius (Mostly in Homes & Churches) McKinney Ranked Fastest Growing City - U.S. Census , 2006 McKinney Ranked #9 America s Best Places to Move - Forbes 2009 McKinney Consistently Ranks in the Top Wealthiest U.S. Cities Average HH Income (3-Mile): $120,657 COPYRIGHT ALL USE, DISCLOSURE AND/OR REPRODUCTION NOT SPECIFICALLY AUTHORIZED IS PROHIBITED. ALL RIGHTS RESERVED. EXP Realty Advisors ( Agent ) has espresented this confidential Investment Memorandum to assist the recipient in evaluating the Property and it is intended for your use only. This confidential material contains brief, selected information pertaining to the Property and shall not be considered all-inclusive or unchanged since the date of preparation. No warranty as to the accuracy or completeness is expressed or implied. The information has been received from sources believed to be reliable but is not guaranteed. Agent disclaims all liabilities in connection with any inaccuracies or incompleteness. The Buyer should independently verify each item of information and have the same reviewed by its tax advisor and/or legal counsel. The Buyer agrees that (a) the materials are of a highly confidential nature and will be held in the strictest confidence or shall be returned to Agent upon request; (b) the Buyer shall not contact any property manager, employee or tenant of the Property regarding the enclosed materials or the Property, without prior approval of Agent; and (c) the Buyer understands and agrees that Agent represents the seller and not the Buyer. Neither the seller nor Agent shall have any obligation to pay any commission, finder s fee, or other compensation to any broker or other person dealing with the Buyer. The Buyer may provide information to persons retained for the purpose of evaluating the Property after first obtaining a signed confidentiality agreement from such persons to keep such information confidential. The Buyer shall defend, indemnify and hold harmless the seller, Agent and its affiliates from and against any claims, demands, damages, liabilities, costs or expenses, including reasonable attorneys fees, relating to any claim for a commission, finder s fee or other compensation by any broker or other person dealing with the Buyer. The Property is being sold on an as-is, where-is and with all faults basis.

4 TENANT OVERVIEW: Founded: 1986 Lessee: Franchisee Headquarters: Pennsylvania Personal Guaranty: Yes Locations: 320+ Website: Recently named number one child care franchise in the United States by Entrepreneur magazine, for the eighth consecutive year (January 2009) and one of the top 200 franchise systems (in worldwide sales), by Franchise Times, for the second consecutive year (October 2008); Goddard Systems, Inc. (GSI) is expanding The Goddard School network throughout the United States. Headquartered in King of Prussia, Pennsylvania, GSI currently licenses 320-plus franchised schools in 37 states. Goddard Schools receive unannounced visits from GSI Quality Assurance representatives several times a year. The Goddard QA evaluation meticulously examines all aspects of health and safety as well as providing a detailed assessment of curriculum and programming. This absolute commitment to quality is strongly supported by franchisees as affirmed by an impressive 30 percent who have already purchased second franchises. Goddard franchisees share a common entrepreneurial spirit and a commitment to providing the highest quality child care in their communities, as evidenced by each school s on-site management. With a successful system in place and dedicated franchisees, GSI has achieved its initial goal as the acknowledged leader in franchised child care. The company now has its sights on the next level - recognition as the premier child care provider in the United States. Goddard School buildings are custom designed and planned to provide safe, healthy and stimulating environments for children from six weeks to six-years-old. Two separate playgrounds are designed to challenge and delight each age group. Every Goddard School: Is a fully licensed child care facility Has highly qualified staff trained in Early Childhood Education or Child Development Provides children with carefully planned educational programs that meet the social, emotional, cognitive and physical needs of each child Maintains a small group atmosphere to provide individual attention Offers open and honest communication with parents in an atmosphere of mutual trust and respect This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information an bears all risk for any inaccuracies.

5 Site Plan This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information an bears all risk for any inaccuracies.

6 LOCATION OVERVIEW: Immediate Trade Area The Goddard School is located at the northwest corner of Ridge Road and McKinney Ranch Parkway (FM 720), a major commute thoroughfare for McKinney residents traveling to Dallas. The subject property is near the town municipality center and adjacent to Lake Forest Crossing shopping center which includes the following tenants: Wal-Mart Supercenter and gas station, Blockbuster Video, 7-Eleven, McDonalds, Game Stop, GNC, Sally Beauty, Supercuts, Payless Shoe Source among other national and local retailers. Within the immediate area there are 3 planned unit developments of townhomes. In a 3-mile radius of the subject property, there are 10 public schools, including Johnson Elementary, Evans Middle School, Wolford Elementary School, Walker Elementary School, McNeil Elementary School, Glen Oaks Elementary, Bennett Elementary School, Valley Creek Elementary School and Dowell Middle School. In a 15-mile radius of the subject property, there are approximately 16 child care/pre-schools, most of which are home-based or housed in religious institutions. McKinney, TX McKinney, one of the nation s fastest growing cities and the seat of one of the wealthiest counties in the United States, offers a diverse and stable economy that continues to thrive even in today s turbulent marketplace. McKinney is the county seat of Collin County, located 12-miles north of Dallas and only 30-miles from DFW International Airport. McKinney is served by two U.S. highways: U.S. 75 and U.S Collin County Regional Airport is also located in McKinney. The city is also bordered by State Highway 121 (S.H. 121); portions of the highway are currently under construction with the intention of creating a toll-based roadway. In 2008, the U.S. Census Bureau estimated that the city s population was 115,620. The Census Bureau listed McKinney as the nation s fastest growing city from 2000 to 2003 and again in 2006, among cities with more than 50,000 people. In 2007 it was ranked second-fastest growing among cities with more than 100,000 people and in 2008 as third-fastest. McKinney has grown 125%, from 54,639 to 115,620 between Population estimates for 2009 were 120,000. Dallas-Fort Worth Metroplex The Dallas/Fort Worth Combined Statistical Area is made up of 19 counties and has one of the highest concentrations of corporate headquarters in the United States. American Airlines is the largest employer in the Metroplex. Several major defense manufacturers, including Lockheed Martin, Bell Helicopter Textron, and Raytheon, maintain significant operations in the Metroplex. ExxonMobil, the #1 corporation on the Fortune 500 listings, is also headquartered here. In July 2009, six (6) cities in the Dallas-Fort Worth Metroplex made the Forbes America s 25 Best Places to Move list: Flower Mound (No. 6), Frisco (No. 7), McKinney (No. 9), Carrollton (No. 12), Allen (No. 19), and Plano (No. 25). Dallas, TX Skyline 2009 Demographic Snapshot CATAGORY 1 MILE 3 MILE 5 MILE Population 4,517 66, ,025 Households 1,499 20,831 66,618 Average HH Income $102,273 $120,657 $113,633 Median HH Income $104,644 $115,354 $110,896 Median Disposable Income $79,743 $95,107 $91,621 Owner Occupied Housing 89.5% 85.3% 78.4% Median Age Employment Rate 96.9% 97.9% 97.5% Drive to Work (Alone) 79.0% 87.0% 86.3% White Collar Occupation 90.0% 87.3% 83.9% Source: Demographics Now December 2009 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information an bears all risk for any inaccuracies.

7 EXISTING DEBT: MUST BE ASSUMED Location Maps

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9 LEASE OVERVIEW Primary Lease Term: Fifteen (15) Years Options: Two (2), Five (5) Year Rent Commencement: October 2009 Annual Rent (Years 1-5): $220,000 Lease Expiration: September 2024 Annual Rent (Years 6-10): $242,000 Lease Type: Double Net (NN) Annual Rent (Years 10-15): $266,200 Roof & Structure: Paid by Landlord* Option One Rent (Years 16-20): $292,820 Personal Guarantee: Yes Option Two Rent (Years 21-25): $322,102 * Lanlord responsible for HVAC replacment during the last 5-years of lease and any option period RENT ROLL Building Land Lease Term Rent** Tenant* Area Area Begin End Monthly Annually Taxes Insurance CAM's The Goddard School 8,068 SF Acres Oct-2009 Sep-2010 $18,333 $220,000 NNN NNN NNN Oct-2010 Sep-2011 $18,333 NNN NNN NNN Oct-2011 Sep-2012 $18,333 NNN NNN NNN Oct-2012 Sep-2013 $18,333 NNN NNN NNN Oct-2013 Sep-2014 $18,333 NNN NNN NNN 10% Increase Oct-2014 Sep-2015 $20,167 $242,000 NNN NNN NNN Oct-2015 Sep-2016 $20,167 NNN NNN NNN Oct-2016 Sep-2017 $20,167 NNN NNN NNN Oct-2017 Sep-2018 $20,167 NNN NNN NNN Oct-2018 Sep-2019 $20,167 NNN NNN NNN 10% Increase Oct-2019 Sep-2020 $22,183 $266,200 NNN NNN NNN Oct-2020 Sep-2021 $22,183 NNN NNN NNN Oct-2021 Sep-2022 $22,183 NNN NNN NNN Oct-2022 Sep-2023 $22,183 NNN NNN NNN Oct-2023 Sep-2024 $22,183 NNN NNN NNN 10% Increase (Option 1) Oct-2024 Sep-2025 $24,402 $292,820 NNN NNN NNN Oct-2025 Sep-2026 $24,402 NNN NNN NNN Oct-2026 Sep-2027 $24,402 NNN NNN NNN Oct-2027 Sep-2028 $24,402 NNN NNN NNN Oct-2028 Sep-2029 $24,402 NNN NNN NNN 10% Increase (Option 2) Oct-2029 Sep-2030 $26,842 $322,102 NNN NNN NNN Oct-2030 Sep-2031 $26,842 NNN NNN NNN Oct-2031 Sep-2032 $26,842 NNN NNN NNN Oct-2032 Sep-2033 $26,842 NNN NNN NNN Oct-2033 Sep-2034 $26,842 NNN NNN NNN * Franchise Operator with personal guarantee from operators Tenant has a first right of refusal to purchase the property. This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information an bears all risk for any inaccuracies.

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