The subject property is a build-to-suit office building, fully leased to the United States of America’s Forestry Service, located in Kalispell, Montana. The Tenant has consolidated multiple nearby locations into this facility located near the intersection of Stillwater Rd. and Reserve Drive one mile west of the Spring Prairie retail development (Costco, Lowe’s Home Improvement, Home Depot, Target, TJ Maxx, Best Buy, Petco, Ross, Bed Bath & Beyond, Pier 1 Imports, McDonald’s, Wells Fargo, Famous Dave’s and others). This attractive single-story facility consists of 28,120 net rentable sf of office and related space. Two additional government related office building are planned adjacent to this U.S. Forestry facility (Land Management & 911). The Government’s committment to this facility is confirmed by the rare 15-year non-cancelable lease term. The Seller will continue to handle all property management making this investment ideal for a passive investor seeking the most secure income stream. The improvements are subject to a 99 year Ground Lease with the State of Montana. The ground lease rent is flat for the initial 20 years, concurrent with the U.S Forestry lease term. The Ground Lease is renewable for 99 years.

Lease Type:
The lease type is a Modified Gross Lease, which is the standard format used by the U.S. Government. The lease term is for 20 years (15 years non-cancelable), after which the tenant can give the Landlord a 60 day notice to terminate. The Landlord is responsible for certain Expenses which are itemized on the following page. The expense figures are based on the Seller’s 2009 Budget. Refer to page 3 for all Operating Expenses. The tenant is responsible for any increase in Property Taxes over the Base Year and for any overtime hours that the Property is operated. The Government is also responsible for electricity and fuel for heating, janitorial service in the office and warehouse and the annual cost of living adjustment (CPI).