Bancroft's investment philosophy is unique to the real estate industry in several important respects: The Company invests its own funds in all partnerships. The Company receives no upfront fees (other investment firms will take acquisition fees, disposition fees and leasing overrides). The Company's return on investment is 100% performance based. Investors receive a 100% return of invested capital prior to the Company receiving any return of its invested capital. Bancroft's primary objective is to create value for the investor through the identification and acquisition of real estate assets that provide attractive, above market yields and display significant upside potential. The Company specifically targets undervalued real estate in the following categories: suburban office, light industrial, warehouse, laboratory and R&D buildings. Since its inception, Bancroft Capital has pursued a strategy that has emphasized both investment and asset management for its clients. We maintain extensive ties to real estate professionals and lenders throughout the western United States to ensure complete and comprehensive coverage of all aspects of an investment and to provide the best possible combination of investor returns and investment safety. Bancroft believes that value in real estate can be created in three ways: By acquiring an asset at a discount By intense, creative management By converting value into cash through a timely sale Bancroft also believes that because the U.S. real estate markets are going through a transitional period, attractively priced opportunities exist in stable, first tier markets and strong secondary markets. Our strategy is to take advantage of this transitional period by exploiting inefficiencies or dislocations in the marketplace. These include acquisitions involving: a motivated seller, an out-of-favor asset class or size, and/or the need for aggressive leasing/management. A value strategy should not be too narrowly confined to a specific property type, location or size. The condition of real estate markets and different property types within our target markets are constantly changing. Bancroft's strategy is designed to be flexible in order to capitalize on those changes. The most critical element of our strategy is to buy at the right time and the right price. Toward that end, we will not complete a transaction in haste or overpay for an asset. We believe that purchasing an asset below replacement cost provides our clients significant protection against downside risk and increases the likelihood of achieving significant capital gains. Bancroft will pursue a value investment strategy under which the assets acquired have one or more of the following characteristics: Motivated sellers Properties requiring proactive "hands on" management to enhance value Acquisition price less than replacement cost Properties located in markets with superior growth prospects As implemented, Bancroft Capital's aggressive pricing strategy allows the Company to structure its partnerships to both comfortably service debt and provide attractive cash-on-cash and holding period returns to the investor. Finally, Bancroft is committed to maintaining a "hands on" approach through a core group of partners with complementary skills. By keeping our costs at a minimum, we don't feel pressure to acquire an asset in order to justify general and administrative expenses. We have created a trustworthy "virtual team" in each of our focus submarkets to lend us local expertise in the disciplines of brokerage, property management, legal, environmental, engineering/structural, architectural, construction, civil issues and more on an as needed basis. Additionally, our corporate law firm, Allen Matkins Leck Gamble & Mallory is one of the premier real estate law firms in the United States ensuring that Bancroft and our partnerships receive the best legal counsel available.