Pivotal Group emphasizes a value-oriented development and investment philosophy and uses what it calls an "investor operator" philosophy in managing its operation. This approach not only provides for financial discipline but puts significant emphasis on hands on management.

INVESTMENT CRITERIA

Geographical Areas:
Western Regions of the United States, including Seattle, Portland, San Francisco Bay area, Sacramento, Los Angeles, Orange County, San Diego, Phoenix, Tucson, Calgary, Vancouver, Hawaii, Texas and Mexico. Other regions will be considered upon review of Offering Memorandum.

Property Types:
Prime office, luxury resorts and commercial hotels, recreational properties, light industrial, and master planned communities. Freehold interests and leasehold interests will be considered.

Cash Investment:
$25 million to $300 million.

Age of Improvements:
Typically 1985 or newer.

Office Lease Terms:
Annual cost of living increases for lease terms longer than three years with triple-net or specified dollar expense stops.

Returns:
Depending upon intrinsic qualities and future growth potential.

General:
Properties should be well located with strong demographic momentum in prominent markets. Finished properties should be of high caliber with superior construction, design, and finish.

Exclusions:
Large raw parcels for master planned community development, unless fully entitled and able to be joint ventured, and office properties with long-term leases with little or no inflation protection.