Falcon Real Estate works with a number of clients around the world, both individuals and institutions, that have well-established investment objectives for the United States real estate market. Different clients, of course, have different investment objectives, and therefore the Falcon acquisition staff is constantly looking for many types of properties, in differing size ranges and with differing risk parameters.

Our current requirements are listed below:

1. Multi-Tenant Office Buildings: $25 to $150 million range. We are actively seeking high quality office buildings for several of our clients. Prime locations are preferred but attractive investment opportunities in secondary markets will also be considered. We require newer office buildings with occupancy levels of 80% or higher. Credit or quality tenants are favored as well as properties that are leased to a handful of tenants.

2. Single-Tenant Office Buildings: $20 to $200 million price range. Longer-term leases to creditworthy tenants in better locations will be considered. Tenants with investment grade credit ratings or international recognition are preferred and leases must have attractive rental rate increases during the term.

3. Premier Retail: Several of our clients are looking for retail properties in top markets around the U.S. Long-term leases or below market rent situations will be considered if they are leased to the highest quality retailers on high profile retail streets. These properties can fall into virtually any price range.

4. Joint Venture Opportunities: $20 to $125 million equity investment. We are actively reviewing opportunities to recapitalize existing office properties or portfolios. An equity position of 40% to 90% will be considered and preferred returns are desired. Better locations and experienced operators are required.

5. Distressed Debt: Several of our clients are seeking to purchase non-performing commercial mortgage notes. The debt should be tied to residential projects in prime locations. We prefer completed condominium projects that could be converted to rental units. Office properties will also be considered.

October 2008