PD-West goal is to mitigate risk, and provide a suitable yet stable long-term real estate earnings environment.

Investors receive a preferred 8% cash on cash quarterly payment. This payment is made before any profit is made available to PD-West. Project viability, projections and cash reserves are planned in order to provide this cash on cash return.

This is a development (or rehab opportunity) and as such a built in profit or spread is calculated based on a fixed cost development schedule. The spread is approximately a "development" 9 cap rate versus a sell rate of a finished center of 6.0%- 6.5% cap rate. There are numerous factors that may negatively impact the cap-rate spread. The exit (sell) buying cap rate may move upward with interest rates. In such a case, PD-West may hold the property beyond the build out and wait for cap rates to return to a more suitable rate or simply hold for the first rent rate increase (five years). PD-West can mitigate the cap rate fluctuation because the cost and rent revenues place the development at a cash positive or break-even position. Before a project is approved it must demonstrate a 20% annual return based on a 7.0 cap rate.

Projects are not undertaken without some form of commitment from either "exclusive" tenants or client tenants that are actively engaged. The commitment may be in the form of a contract, or Letter of Intent. Some tenants may not move forward. This may slow (or have no impact) on the project time-line. Construction loans cannot be secured without tenant contracts. PD-West will manage the tenant process with care. Land is not purchased without some realistic prospect of a viable tenant mix, however, if the land is purchased and a tenant mix is delayed, or if some un-foreseen event happens, then the Fund owns the land. In this extreme case, the land would still have value, but, in the extreme, perhaps less than the purchase price. Land is not contracted for unless it is entitled retail commercial. Raw and un-entitled land is not contracted for.

Before a project moves forward with the land purchase a viable tenant and/or tenant mix would be in place. The land would be entitled and be suitable for the tenant mix. All engineering, surveys, soil tests, land use and project specifics, and land use appraisal would be completed before land purchase. At least the following due diligence is completed prior to COE:

• Phase 1 and Phase 2 environmental reports
• Confirmed zoning, availability of utilities, city fees, and design review procedures
• Land Appraisal completed (bank sponsored)
• Review of any land encumbrances (easements, access )
• Rental rate survey and pre-leasing

Investors are not responsible for pre-construction costs if a project is abandoned. Funds may be borrowed from a PD-West Fund for such pre-construction activities, but if a project is not engaged then those costs are the ultimate responsibility of the Developer and paid back to the Fund by PDP.

Investors will not be responsible for any mortgage or loans for property development or final project loans. Those loans are underwritten by the project itself and where required personally guaranteed by Mr. Neustadt. There are certain business strategies that can be accomplished to mitigate risk, but there can be numerous un-foreseen events that may alter these strategies. This overview is NOT intended to review all the risks but rather to provide information regarding strategies that can mitigate some important risk possibilities. The Risk section of the Investor offering should be read and understood.

Investment in the Fund is highly speculative. Prospective investors should conduct their own investigation and analysis of the business, data and prospects of the Partnership and carefully review the Risk Factors, which could materially adversely affect the business and prospects. Prospective investors should be prepared to hold their investment for a substantial time period and possibly lose a substantial portion of their invested capital or all of their invested capital.

The Case Study is an example of project costs and current market cap rates for a sale of a completed project. The Case Study represents the projections for a current project funded by an experienced Real Estate Investment Firm. These projections are budgeted numbers and for general information purposes only. Circumstances and market conditions may alter numbers considerably. However, PD West will not pursue any project unless it believes that the minimum profitability goals are reasonably achievable.