Greenstreet Real Estate Partners manages KLC PropCo real estate portfolio

H Leverage Greenstreet Real Estate Partners’ significant expertise: — KLC believes it is able to better maximize the potential of its real estate assets by having them managed by a dedicated and highly experienced team at Greenstreet Real Estate Partners rather than having them managed at the operating company level. m Cash generated will be reinvested in acquiring more assets. Diversify the real estate portiolio: — The Greenstreet Real Estate Partners team is actively looking at diversification and reinvestment opportunities for the real estate portfolio. The diversification strategy will include some opportunistic investments in non-education related real estate assets. 42.2. Management Team KLC PropCo is managed by Greensireet Real Estate Partners through a long-term agreement. Greenstreet Real Estate Partners has a highly experienced management team to guide the continued acquisition and diversification of the real estate portfolio. The management team includes Steven Green, Chairman and CEO of Greenstreet Real Estate Partners, Jeffrey Safchik, COO and CFO and Steven Cox, Executive Vice President Real Estate. Greenstreet Real Estate Partners controls a significant portfolio of owned and self-managed real estate and has extensive experience in corporate transactions involving owned real estate. Greenstreet Real Estate Partners operates a private real estate equity platform, having made in excess of $850 million in acquisitions and with assets currently under management (excluding KLC PropCo} of $540 million. It has owned and managed in excess of 10 million square feet of shopping centers with value in excess of $1 billion. The principals of Greensireet Real Estate Partners each have in excess of 20 years in real estate and capital markets. Their biographies can be found in Appendix A. 12.3. Description of the Real Estate Assets The highly diversified portfolio includes 845 properties in 37 states. The properties are primarily one story wood-framed buildings totaling 5,119,320 sq. ft. Some of the larger state concentrations include Texas, California, lIllincis and Virginia. No single state accounts for more than 11% of the total centers (see the Figure below for details on the geographic distribution}. The properties are single-tenanit stand-alone buildings. The average age of the properties is approximately 15 years with 22% of the portfolio built after 1991 and approximately 6% of the facilities being constructed prior to 1979. The centers’ trailing 12 month Utilization was 58.9% as of December 31, 2005. 161 HOUSE_OVERSIGHT_024534