Acquisition Criteria

Geographic Area - Katz Properties focuses on acquisitions in the Northeast and Mid-Atlantic regions, primarily focusing in and around major market places.

Price - Properties priced between $3,000,000 and $50,000,000

Property Classification - Retail strip, neighborhood, community and regional shopping centers. Office properties are also considered.

Katz Properties invests in two types of property:

• "Stabilized" properties that are currently fully leased, which makes them immediate income producers.
• "Added-Value" transactions: these are properties that require renovation and/or additional leasing.

Investment Criteria - Retail Properties

Katz Properties is interested in acquiring retail properties with the following characteristics:

• 25,000 SF or more
• Good market placement, infill locations
• Anchored, unanchored, local or regional tenant base
• Yields exceeding 7% (unleveraged) in the first year with upside potential for future years
• Yields meeting or exceeding 9% for properties with limited upside potential

Investment Criteria - Office Properties

Katz Properties is interested in acquiring Office properties with the following characteristics:

• 50,000 SF or more
• Office / flex, office buildings, and corporate campus properties
• Middle market placement or better - no lower end properties will be considered
• Yields exceeding 7% in the first year with upside potential for future years
• Yields meeting or exceeding 9% for properties with limited upside potential
• Yields for renovation, lease up or turnaround deals will be considered case by case with a focus on future value and high IRR expectations.