03.11.2009

Thank you for your continued interest in Mills Park. Given the state of the economy, our decision to postpone construction at Mills Park has proven to be a good one and will help to ensure that the original Mills Park vision will ultimately be fulfilled as planned.

I am pleased to report that market indicators suggest that now may be the right time to begin our first phase of construction. I would like to provide you with the details.

While most sectors of the real estate market have experienced significant declines, the medical market has remained strong. Vacancy rates within existing medical facilities remain low, medical property values remain high and the strength of the health-care industry has not suffered nearly as much as other sectors. These factors, along with the location of Mills Park and the quality of the product, have fostered enough interest to support the development of the first of two approved medical building at Mills Park. This building is shown on our master plan as "Building 6." It is located on the northeast corner of the site. As of February 1st, we have been meeting with medical professionals that have expressed interest in the development. So far, the response has been encouraging. Initial meetings suggest that many would have interest in space if they could lease with the option to own in the future. Understandably, a common concern has been the availability of financing. In response, we have developed a program that will provide doctors with unprecedented flexibility. They will have the opportunity to either purchase initially, or lease and decide to purchase at a later date.

We are currently working with our contractor and the City to determine the development schedule. Our expectation is to have sufficient commitments to proceed by summer, in which case construction will begin prior to the end of the year.

I look forward to providing an update in the near future.

Sincerely,
Justin Pelloni
President