The buildings at 13100 and 13130 Yukon Avenue are located in the Los Angeles industrial market. They are specifically located in the city of Hawthorne, which is part of the South Bay industrial submarket. In general, the Los Angeles industrial market is considered one of the top industrial markets in the nation and holds the distinction for maintaining the lowest industrial vacancy for the past several years. The subject property is located in an established infill location with direct proximity to a highly skilled labor pool and direct access to 3 major freeways (405, 105, and 110). The subject property is located with close proximity to the Hawthorne Municipal Airport, as well as, being minutes from the Los Angeles International Airport. In addition, the Los Angeles and Long Beach ports are also within very close proximity to the subject property.

Due to a lack of available development sites, rising construction costs and increasing land values in the greater Los Angeles industrial market, new development activity remains constrained and very limited in scope. During 2007, newly delivered construction totaled just over 3.0 million square feet, which represents less than one-half of one percent (0.30%) of the base inventory. The bulk of the new construction in the Los Angeles area remains in the outlying areas of northern Los Angeles and the eastern portion of the San Gabriel Valley markets. With port container traffic expected to more than triple by 2020 at the Los Angeles/Long Beach ports, the subject property’s location remains a key asset for continued appreciation and value.

The above statistics have been compiled for the Los Angeles Market for the 4th Quarter 2007.