For each potential acquisition or disposition, Kennedy Associates Real Estate Counsel, LP's research, acquisition, and asset management staff conduct detailed analysis of demand, supply, and capital market conditions. This includes quantitative evaluations of:

• Demand - including employment, household formation, income, and retail sales
• Supply - including absorption, new construction, vacancy, rents, and user needs
• Capital markets - including asset prices, cap rates, and investment flows by type

Formal forecasting methods include economic base, shift-share, econometric, and demand-supply market analysis models.

MEPT places a primary emphasis on markets with proven ability to generate continued demand for all property types, withstand business cycle and market volatility, and provide relative liquidity and economic diversification. Kennedy evaluates macro and region-specific economic, space market, and capital market trends to determine particular emphases during certain phases of the real estate cycle. MEPT currently has investments in over 25 major metropolitan markets.

MEPT evaluates opportunities based on the merits of each individual asset. In order to insure that each asset will create value, MEPT seeks investments where:

• Development of new assets at costs below current market values
• Acquisition of existing properties at or below replacement cost
• Building rehab and/or expansion, where appropriate
• Identifying opportunities to lease the asset at higher rents

The process of seeking specific opportunities in our target markets and property types is initiated and directed by acquisition officers based in Seattle, Dallas, Chicago, Washington, DC, Los Angeles, and San Francisco. Because these professionals have long-established relationships with property owners and developers, providing MEPT with early access to prime opportunities.