la01-15-0110.000 land report - all bundles

BUNDLE H LAND VALUATION

© 2015 VALBRIDGE PROPERTY ADVISORS | Argote, Derbes, Graham, Shuffield and Tatje, Inc. Page 271

Indicators$/Usable Acre $353,017 $/Usable SF $8.10

Verification Confirmed With Vendor, Jefferson Parish Assessor and Clerk of Court Confirmed By Woody Crochet III Confirmation Date May 12, 2015

Remarks X This is the sale of a 0.22 acre, 9,563 square foot, parcel of land located on the west side of Georgia Avenue just southeast of the major intersection of Williams Blvd. and West Napoleon Ave. in the southern portion of Kenner. At the time of sale, this site was vacant, cleared, filled, level and is just south of a CVS location and across the street from Big Easy Storage, a mid-sized, climate controled storge facility. The site remains vacant as of May 2015. This sale was originally listed for $99,900 and sold at $77,500 after being on the market for only 5 days.


© 2015 VALBRIDGE PROPERTY ADVISORS | Argote, Derbes, Graham, Shuffield and Tatje, Inc. 72

LAND COMPARABLE 4

Property IdentificationProperty/Sale ID 2541/2229 Property Type Commercial Land Address/Location Southeast corner of Daniel and 5th Streets City, State Zip Kenner, Louisiana 70062 Latitude/Longitude 29.977390/-90.247840 Tax ID 920013722, 920013718 Legal Description Lots 18-A & 22-A, Square 44, Kenner Orchards, Subdivision, Jefferson Parish,

Kenner, Louisiana.

Transaction DataSale Date September 20, 2013 Sale Status Closed Vendor Stanley John and Darleen

M. Rieder Vendee Joseph Morris Jeffery

Property Rights Fee Simple Financing Cash to Seller Conditions of Sale Typical Recording Number NA# 113-47433 Sale Price $120,000

Property DescriptionGross Acres 0.62 Gross SF 27,000 Usable Acres 0.62 Usable SF 27,000 Access Average Rail Access No Water/Port Access No Visibility Average Parcel Type Corner

Shape Rectangular Dimensions 150' x 180' Topography Level Utilities All are available to the site. Flood Hazard Zone AE and X Zoning Code S-I Zoning Description Special Industrial District Encumbrances/ Easements

None known




Verification Confirmed With Vendee, Jefferson Parish Assessor and Clerk of Court Confirmed By Support Staff Confirmation Date November 7, 2013

Remarks X This is the sale of a 0.62 acre, 27,000 square foot, parcel of land located at the southeast corner of Daniel and 5th Streets approximately three blocks south of Airline Drive and three blocks west of Williams Blvd. in the southern portion of Kenner. At the time of sale, this site is vacant, cleared, filled and level. The site remains vacant as of May 2015.



LAND COMPARABLE 5

Property IdentificationProperty/Sale ID 2542/2230 Property Type Commercial Land Address/Location Corner of Maria and 5th Streets City, State Zip Kenner, Louisiana 70062 Latitude/Longitude 29.977762/-90.249907 Legal Description Lots 21-25, Square 46, Kenner Orchards, Jefferson Parish, Kenner, Louisiana.

Transaction DataSale Date June 20, 2014 Sale Status Closed Vendor Fitzgerald Family

Properties, LLC Vendee Steven K. Fruge



Dimensions Shape

100’ by 120’ Rectangular

Topography Level Utilities All are available to the site. Flood Hazard Zone AE Zoning Code S-I Zoning Description Special Industrial District Encumbrances/ Easements

None known



Indicator $/Usable Acre $199,650 $/Usable SF $4.58


Remarks X This is the sale of a 0.28 acre, 12,000 square foot, parcel of land located at the southeast corner of Maria and 5th Streets approximately three blocks south of Airline Drive and four blocks west of Williams Blvd. in the southern portion of Kenner. The sale was originally listed for $59,000 and sold at $55,000 after being on the market for 85 days.



Land Sales Comparison Analysis We analyzed the sales and made adjustments for differences in the elements of comparison previously listed. The comparable sales are adjusted to the subject: if the comparable sale was superior to the subject, we applied a negative adjustment to the comparable sale. A positive adjustment to the comparable property was applied if it was inferior to the subject. Transaction adjustments include Real Property Rights Conveyed, Financing Terms, Conditions of Sale, and Expenditures Made Immediately After Purchase. The adjustments are discussed as follows:

Real Property Rights Conveyed The sale comparables all reflect the fee simple interest as well as the subject, with no adjustments required.

Financing Terms The transaction price of one property may differ from that of an identical property due to different financial arrangements. Sales involving financing terms that are not at or near market terms require adjustments for cash equivalency to reflect typical market terms. A cash equivalency procedure discounts the atypical mortgage terms to provide an indication of value at cash equivalent terms. All of the comparable sales involved typical market terms by which the sellers received cash or its equivalent. The buyers paid cash or tendered typical down payments and obtained conventional financing at market terms for the balance. Therefore, no adjustments for this category were required.

Conditions of Sale When the conditions of sale are atypical, the result may be a price that is higher or lower than that of a normal transaction. Adjustments for conditions of sale usually reflect the motivations of either a buyer or a seller who is under duress to complete the transaction. Another condition of sale adjustment can arise from the vendee being a neighboring property owner. Another, more typical condition of sale adjustments involves the downward adjustment required to a comparable property’s for-sale listing price, which usually reflects the upper limit of value. A review of the land sales reviled that all of the sales exhibited typical conditions of sale and no adjustment was warranted.

Expenditures Made Immediately After Purchase A knowledgeable buyer considers expenditures that will have to be made upon purchase of a property because these costs affect the price the buyer agrees to pay. Such expenditures may include: (1) costs to demolish and remove any portion of the improvements, (2) costs to petition for a zoning change, and/or (3) costs to remediate environmental contamination. The relevant figure is not the actual cost incurred, but the cost that was anticipated by both the buyer and seller. Unless the sales involved expenditures anticipated upon the purchase date, no adjustments to the comparable sales are required for this element of comparison.

Market Conditions Adjustment Market conditions change over time as a result of inflation, deflation, fluctuations in supply and demand and other factors. Changing market conditions creates the need for adjustments to sale comparables that represent transactions during periods of dissimilar market conditions. Discussions with market participants and investigation of older land sales, indicates that the vacant land market



in Kenner, Louisiana has been stable to slightly increasing. As such, we have applied a nominal annual adjustment of 2.5% to the land sale comparables.

Property Adjustments Property adjustments are usually expressed quantitatively as percentages that reflect the increase or decrease in value attributable to the various characteristics of the property. In some instances, however, qualitative adjustments are used. These adjustments are based on locational and physical characteristics and are applied after the application of transaction and market conditions adjustments. Our adjustments to the sale comparables are summarized on the following adjustment grid. These qualitative and quantitative adjustments are based on our market research, best judgment, and experience in the appraisal of similar properties.

Location Location adjustments may be required when the locational characteristics of a comparable are different from those of the subject. These characteristics can include general neighborhood characteristics, freeway accessibility, street exposure, corner versus interior lot location, neighboring properties, view amenities, and other factors. The subject fronts the north side of 18th Street and the west side of Maria Street approximately five blocks west of Williams Blvd. and just east of the Armstrong International Airport. The subject has good access and average visibility. The five land sale comparables are located to the east and south of the subject and airport. Land Sale No. 1 is located just one block west of Williams Blvd. and was adjusted -5% for this slightly superior location. Land Sale No. 2 is located at the very southern end of Kenner just south of 3rd Street and one block north of the Mississippi River Levee and required a 15% adjustment for this inferior location. Land Sale No. 3 is located on the west side of Georgia Ave. just southeast of the major intersection of Williams Blvd. and West Napoleon Avenue. This significantly superior location required a -30% adjustment. Lastly, Land Sale Nos. 4 and 5 are similarly located just south of the Airport on 5th Street and did not require and adjustment.

Size The size adjustment identifies variances in the physical size of the comparables and the subject improvements. Typically, the larger a parcel, the lower the sale price per unit. This inverse relationship is due, in part, to the principle of “economies of scale.” The subject site is 0.30 acres, 13,084 square feet. Land Sale Nos. 1 and 2, are significantly smaller than the subject and were adjusted -5.0%. Land Sale No. 4 is twice the size of the subject and required a 5.0% adjustment.

Shape/Depth The subject site consists of a rectangular shaped parcel as does all of the comparables. As such, no shape or depth adjustments are warranted.

Corner Exposure Tracts with major street influence tend to bring higher prices than otherwise comparable secondary locations. Additionally, tracts featuring corner influence typically command higher prices in the market place, as opposed to interior locations. The subject is a corner site similar to Land Sale Nos. 2, 4 and 5. Land Sale Nos. 1 and 3 are interior sites requiring a 5% adjustment.



Zoning The subject is zoned R1-P, Planned Unit Development, however, due to deed restrictions, residential uses cannot be developed. The highest and best use of sale comparables are considered to be very similar to the subject property and, as discussed in the Highest and Best Use section of this report, the most likely developmental scenario is to request a rezoning of the subject in order to develop it with a secondary commercial or light industrial use. There is certainly risk involved with purchasing a parcel of land that is not developable as zoned in hopes that a zoning change request will be granted for another use. The appraisers have adjusted the land sales a consistent -25% to account for this risk, as well as, the effort and time associated with obtaining a zoning change or variance for the subject property.

Noise Abatement In addition to the zoning risk discussed above, any future building development of the site must include enhanced noise reduction construction requirements. The only uses allowed in the subject’s location, which has an average airport related noise level of 75 decibels, are commercial, industrial, recreational and similar other uses. If any future buildings are constructed on the site, they must be soundproofed per the following regulation, “Measures to achieve an average sound level of 25 decibels must be incorporated into the design and construction of portions of any building where the public is received, office areas, noise sensitive areas or where the normal noise level is low”. In order to properly quantify an adjustment for the noise abatement requirement, property owners, developers and the Marshall & Swift Construction Cost Guide were consulted. The increased cost for noise reduction is estimated to be between $3.75 and $6.50 per square foot of building area. As such, the noise abatement adjustment to the subject site will be estimated by the following calculation. A 4:1 building ratio will be applied to the size of the land sale to estimate the size of a probable commercial or industrial building. An estimated extra soundproofing cost of $5.00 per square foot will be applied to the square footage of the probable building. This increased building cost total will then be divided by the total price paid for the comparable to arrive at the allocated percentage of adjustment. The land sales and their calculated noise abatement adjustments are detailed in the following chart:

Land Sale No. 1 Land Sale No. 2 Land Sale No. 3 Land Sale No. 4 Land Sale No. 5

Land Size (SF) 6,375 6,850 9,563 27,000 12,000

Land to Bldg. Ratio 4:1 4:1 4:1 4:1 4:1Size of Probable Bldg. (SF) 1,594 1,713 2,391 6,750 3,000Cost of Soundproofing Per SF x $5.00 x $5.00 x $5.00 x $5.00 x $5.00

Additional Cost of Construction $7,969 $8,563 $11,954 $33,750 $15,000Divided by Comparble Sale Price $26,000 $22,500 $77,500 $120,000 $55,000Allocated Percentage of Adjustment -30.65% -38.06% -15.42% -28.13% -27.27%

Called….. -30.0% -38.0% -15.0% -28.0% -27.0%

Noise Abatement Adjustment Calculation



Land Sales Adjustment GridSubject Sale # 1 Sale # 2 Sale # 3 Sale #4 Sale #5

Sale ID 300 1859 2228 2,229 2230Date of Value & Sale May 7, 2015 05/19/08 02/10/11 09/12/13 09/20/13 06/20/14Unadjusted Sale Price $26,000 $22,500 $77,500 $120,000 $55,000Usable Square Feet 13,084 6,375 6,850 9,563 27,000 12,000

FALSE FALSE FALSE FALSETransactional AdjustmentsProperty Rights Conveyed Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple

Adjustment - - - - -Adjusted Sale Price $4.08 $3.28 $8.10 $4.44 $4.58

FALSE FALSE FALSE FALSEFinancing Terms Cash to Seller Cash to Seller Cash to Seller Cash to Seller Cash to Seller Cash to Seller


FALSE FALSE FALSE FALSEConditions of Sale Typical Typical Typical Typical Typical Typical


FALSE FALSE FALSE FALSEExpenditures after Sale $0 $0 $0 $0 $0

Adjustment 0.0% 0.0% 0.0% 0.0% 0.0%Adjusted Sale Price $4.08 $3.28 $8.10 $4.44 $4.58

Market Conditions AdjustmentsElapsed Time from Date of Value 6.97 years 4.24 years 1.65 years 1.63 years 0.88 years

Market Trend Through May-15 17.4% 10.6% 4.1% 4.0% 2.2%Adjusted Sale Price $4.79 $3.63 $8.43 $4.62 $4.68

FALSE FALSE FALSE FALSEPhysical Adjustments

Location Fronting 18th Street at Maria Street

East Side of Florida Ave. just west of Williams Blvd.

Corner of Pollock St. and 3rd St.

West side of Georgia Ave. one block east of Williams Blvd.

Corner of Daniel St. and 5th St.

Corner of Maria St. and 5th Street

Adjustment -5.0% 15.0% -30.0% - -FALSE FALSE FALSE FALSE

Size 13,084 sf 6,375 sf 6,850 sf 9,563 sf 27,000 sf 12,000 sfAdjustment -5.0% -5.0% - 5.0% -

FALSE FALSE FALSE FALSEShape/Depth Rectangular Rectangular Rectangular Rectangular Rectangular Rectangular

Adjustment - - - - -FALSE FALSE FALSE FALSE

Corner Exposure Corner Interior Corner Interior Corner CornerAdjustment 5.0% - 5.0% - -

FALSE FALSE FALSE FALSEZoning R1-P C-1 HI LI S-I S-I

Adjustment -25.0% -25.0% -25.0% -25.0% -25.0%FALSE FALSE FALSE FALSE

Noise Abatement Adjustment -30.0% -38.0% -15.0% -28.0% -27.0%

FALSE FALSE FALSE FALSE FALSENet Physical Adjustment -60.0% -53.0% -65.0% -48.0% -52.0%

Adjusted Sale Price per Usable Sq. Ft. $1.91 $1.71 $2.95 $2.40 $2.25



Conclusion From the market data available, five comparable land sales were selected and adjusted based on pertinent elements of comparison. The adjustments were discussed earlier and are presented in the preceding adjustment grid. The following table summarizes the unadjusted and adjusted sale prices:

The adjusted comparable sales have an indicated range from between $1.71 and $2.95 per square foot with a mean of $2.24 per square foot and a median of $2.25 per square foot. It is our opinion, that a unit value near that of the mean of the adjusted prices, at $2.25 per square foot, is indicated for the subject. This indicates a total market value of $30,000 (rounded).

Exposure Time and Marketing Periods Based on statistical information about days on market, escrow length, and marketing times gathered through investor surveys, sales verification, and interviews of market participants, marketing and exposure time estimates of 12 months are considered reasonable and appropriate for the subject property.

Land Sale StatisticsMetric Unadjusted AdjustedMinimum Sale Price per Usable Sq. Ft. $3.28 $1.71Maximum Sale Price per Usable Sq. Ft. $8.10 $2.95Median Sale Price per Usable Sq. Ft. $4.33 $2.25Mean Sale Price per Usable Sq. Ft. $5.01 $2.24

Land Value Indication

Market Value Opinion (Rounded)13,084 Square Feet x $2.25 Per Square Foot = $30,000

VALUATION OF BUNDLE I-1


Bundle 10

(Parcel I-1)

BUNDLE I-1 SITE DESCRIPTION


Site Description General Data

Location:

The subject property is located on the north side of 18th Street and the west side of Oxley Street just east of the Armstrong International Airport and four blocks west of Williams Boulevard in the southern portion of Kenner, Louisiana.

Number of Parcels / Lots: One Parcel containing seven lots

Excess Land: None

Surplus Land: None

Site Areas Total Site Area Size in SF Size in Acres Gross Land Area ±25,901 0.59 Usable Land Area ±25,901 0.59

Site Characteristics Shape: Rectangular

Depth: 1029’

Topography: Level, cleared and filled with some small wooded areas.

Drainage: Adequate

Grade: At street grade

Interior or Corner: Corner

Street Frontage / Access Frontage Road Primary Secondary Street Name: 18th Street Oxley Street

Street Type: Two-way residential street Two-way residential street

Frontage (Linear Ft.): 129’ 198’

Site Improvements Off-Site Improvements: Subsurface drainage

Utilities: All utilities are available to the site.

On-Site Improvements: None

Landscaping: None



Flood Zone Data Flood Map Panel/Number: 22051C0030E

Flood Map Date: May 23, 1995

Flood Zone: Flood Zone X, an area determined to be outside of the hypothetical 100 and 500 year floodplains.

Other Site Conditions Soils: Typical of the area

Environmental Issues: There were no signs of environmental contamination noted by the appraisers on their site inspection and none were noted by ownership.

Easements/Encroachments: Typical utility easements

Adjacent Land Uses North: Vacant land

South: Vacant land

East: Vacant land with some single-family development

West: Some vacant land and commercial developments

Site Ratings Access: Good

Visibility: Average

Exposure: Average

Overall Site: Average

Zoning Designation Zoning Jurisdiction: City of Kenner

Zoning Code/Category: R1-P; Planned Unit Development District

Permitted Uses: Primarily single-family development; however, other uses are allowed as defined as “acceptable deviation from surrounding existing development” upon submission and approval of plans.

Zoning Comments:

The R1-P zoning is primarily single-family development; however, due to deed restrictions that will be imposed on the site, any type of residential development will not be allowable uses. A purchaser of the subject property will have to apply for a zoning change or variance to allow for development which will have to be some form of commercial, industrial or recreational use, which are the primary other uses allowed under the these deed restrictions. Further, any and all buildings constructed on the subject site will have extra



noise reduction construction requirements, which are above typical standards.

Deed Restrictions

Permitted Uses:

The subject property will be deed restricted from ever being used for any residential purpose. It can be used for most other non-residential uses.

Construction Requirements: (Building Noise Abatement)

Any improvements (building) constructed on the subject site will be required to include enhanced noise reduction construction features as per the requirements included in the addenda herein.



Aerial View in lieu of Survey



Zoning Map



Flood Map

BUNDLE I-1 SUBUECT PHOTOGRAPHS


Subject Photos

Subject as seen looking northwest from 18th Street

View of Oxley Street looking north from 18th Street

BUNDLE I-1 SUBUECT PHOTOGRAPHS


View of 18th Street looking west from subject’s frontage

Subject as seen looking southwest from Oxley Street

BUNDLE I-1 ASSESSMENT AND TAX DATA


Assessment and Tax Data Assessment Methodology The subject property is in the City of Kenner and Jefferson Parish and is subject to taxation by both the city and parish. Louisiana Law requires that all real estate properties in the state be reassessed every four years at 10% of land value and residential improvement value, and between 10% and 15% of all other improvements value.

Assessed Values and Property Taxes Tax comparables are not a reliable method of estimating taxes in the local market for this property type. The local assessor has some latitude in assessing property and assessments can vary somewhat from property to property. By law such a property is to be assessed at 10% of its market value. Over the past 3 years the local assessor has been assessing properties at or near their selling prices unless there is information indicating the price was not a market price. Since Louisiana is a disclosure state, deeds are to reflect actual selling prices. The subject is currently owned by a public entity, the City of New Orleans, and, it is therefore, not subject to taxation. Based upon the Market Value conclusion arrived at herein ($52,000), the subject should be assessed for 2015 at $5,200 and taxes for 2015, assuming the same millage rate for 2014 (.08379), would be ±$435.71.

BUNDLE I-1 HIGHEST AND BEST USE


Highest and Best Use The Highest and Best Use of a property is the use that is physically possible, legally permissible and financially feasible which results in the highest value. An opinion of the highest and best use results from consideration of the criteria noted above under the market conditions or likely conditions as of the effective date of value. Implied in the definition is that the determination of highest and best use results from the judgment and analytical skills of the appraiser; that is, that the use determined from analysis represents an opinion, not necessarily a fact to be found. In appraisal practice, the concept of highest and best use represents the premise upon which value is based.

Analysis of Highest and Best Use as if Vacant In determining the highest and best use of the property as though vacant, we examine the potential for: 1) near term development, 2) a subdivision of the site, 3) an assemblage of the site with other land, or 4) holding the land as an investment.

Physically Possible The physical attributes allow for a number of potential uses. Elements such as availability of utilities, known hazards (flood, environmental, etc.), and other potential influences are described in the Site Description and have been considered. There are no items of a physical nature that would materially limit development other than the property’s size.

Legally Permissible The subject is zoned R1-P, Planned Unit Development District; however, as mentioned previously, due to deed restrictions that have been imposed on the site, all types of residential development are prohibited on the subject site. A purchaser of the subject property will have to apply for a zoning change or variance to allow for the development of a commercial, industrial or recreational use, which are the primary uses allowed under these deed restrictions. Further, any buildings constructed on the site will require enhanced noise abatement features, which are above typical standards, in its construction.

Financially Feasible Once physically possible and legally permissible uses are determined, an appraiser considers the potential of economic or financial feasibility for the most probable uses via a cost/benefit analysis or through direct market observation. The probable use of the site for secondary commercial or light industrial development generally conforms to the pattern of land uses in the market area, representing a positive in terms of market demand. The subject is two blocks west of Williams Boulevard which is Kenner’s most prominent north/south commercial corridor. A cursory review of the neighborhood and commercial/industrial market in Kenner was made and conditions appear to be generally stable. Even though data suggests that supply exceeds demand in the immediate market area, commercial and/or industrial development is financially feasible; however, any new construction on the subject’s site will have the added cost of enhanced sound proofing requirements. These increased costs of construction will negatively affect demand and market value. Maximally Productive



Among the financially feasible uses, the use that results in the highest value (the maximally productive use) is the highest and best use. Considering these factors, the maximally productive use, as though vacant, is for development as a secondary commercial or light industrial use.

Conclusion of Highest and Best Use as though Vacant The subject’s current RR-1 zoning is moot as no residential uses will be allowed on the site as per deed restrictions to be imposed on the site. As previously stated, the subject consists of seven lots, together, measuring 129’ by 198’ and containing 25,901 square feet fronting the north side of 18th Street. Based on current zoning and permissible uses, surrounding land uses, and the subject’s width and depth, the highest and best use, as vacant, is for combination with other adjacent parcels to improve its depth and utility for possible development. Subsequent to the combining with other adjacent parcels, the most likely highest and best use is a secondary commercial and/or light industrial use if and when a zoning change were to be obtained.

Most Probable Buyer/User As of the date of value, the most probable buyer of the subject property is local owner or investor and the most probable user would be local owner or investor.

BUNDLE I-1 APPRAISAL METHODOLOGY


Appraisal Methodology Three Approaches to Value There are three traditional approaches typically available to develop indications of real property value: the cost, sales comparison, and income capitalization approaches.

Cost Approach The cost approach is based upon the principle that a prudent purchaser would pay no more for a property than the cost to purchase a similar site and construct similar improvements without undue delay, producing a property of equal desirability and utility. This approach is particularly applicable when the improvements being appraised are relatively new or proposed, or when the improvements are so specialized that there are two few comparable sales to develop a credible Sales Comparison Approach analysis.

Sales Comparison Approach In the sales comparison approach, the appraiser analyzes sales and listings of similar properties, adjusting for differences between the subject property and the comparable properties. This method can be useful for valuing general purpose properties or vacant land. For improved properties, it is particularly applicable when there is an active sales market for the property type being appraised – either by owner-users or investors.

Income Capitalization Approach The income capitalization approach is based on the principle that a prudent investor will pay no more for the property than he or she would for another investment of similar risk and cash flow characteristics. The income capitalization approach is widely used and relied upon in appraising income-producing properties, especially those for which there is an active investment sales market.

Subject Valuation As stated within the Scope of Work, we have relied solely upon the Sales Comparison Approach. The Cost and Income Approaches to Value have been excluded due to the fact that the property being appraised is vacant land which is not under any lease or in an area where land is typically leased or purchased for its income producing properties.

BUNDLE I-1 LAND VALUATION


Land Valuation – Sales Comparison Approach Methodology Land is most often valued using the Sales Comparison Approach. This approach is based on the premise that a buyer would pay no more for a specific property than the cost of obtaining a property with the same utility. In the sales comparison approach, the opinion of market value is based on closed sales, listings and pending sales of properties similar to the subject property, using the most relevant units of comparison. The comparative analysis focuses on the difference between the comparable sales and the subject property using all appropriate elements of comparison.

Unit of Comparison The unit of comparison depends on land use economics and how buyers and sellers use the property. The unit of comparison in this analysis is per usable square feet.

Elements of Comparison Elements of comparison are the characteristics or attributes of properties and transactions that cause the prices of real estate to vary. The main elements of comparison that are considered in sales comparison analysis are as follows: (1) real property rights conveyed, (2) financing terms, (3) conditions of sale, (4) expenditures made immediately after purchase, (5) market conditions, (6) location and (7) physical characteristics.

Comparable Sales Data A search of data sources and public records, a field survey, interviews with knowledgeable real estate professionals in the area, and a review of our internal database were conducted to obtain and verify comparable sales and listings of vacant land properties. We used five nearby sales in our analysis, these representing the sales judged to be the most comparable in developing an indication of the market value of the subject property. The following table summarizes each of the land sale comparables and is followed by a map displaying the location of each comparable in relation to the subject. Individual land sale write-ups detailing each comparable follow the location map.



COMPARABLE SALES MAP

Land Sales SummaryLand Date Usable Usable Front Sale Price Per

Sale No. of Sale Acres Sq. Ft. Feet Location Zoning Actual Sq. Ft.1 5/19/2008 0.146 6,375 50' 2012 Florida Avenue Kenner, Louisiana C-1 $26,000 $4.082 2/10/2011 0.157 6,850 50' 240 Pollock Street Kenner, Louisiana C-1-PO $22,500 $3.283 9/12/2013 0.220 9,563 75' 2200 Georgia Avenue Kenner, Louisiana C-1 $77,500 $8.104 9/20/2013 0.620 27,000 150' Daniel & 5th Streets Kenner, Louisiana C-I $120,000 $4.445 6/20/2014 0.275 12,000 100' Maria & 5th Streets Kenner, Louisiana S-I $55,000 $4.58



LAND COMPARABLE 1

Property IdentificationProperty/Sale ID 361/300 Property Type Commercial Land Address/Location 2012 Florida Avenue City, State Zip Kenner, Louisiana 70062 Latitude/Longitude 29.992582/-90.242725 Tax ID 920002312 Legal Description Lots 17 & 18, Square 501, Highway Park Subdivision, City of Kenner, Parish of

Jefferson, Louisiana

Transaction DataSale Date May 19, 2008 Sale Status Closed Vendor Janet Root Bowen, et al Vendee Credo, LLC, represented by

Rickey D. Parr, Sole Member


Property DescriptionGross Acres 0.146 Gross SF 6,375 Usable Acres 0.146 Usable SF 6,375 Front Feet 50.00 No. of Lots 2 Access Average Rail Access No Water/Port Access No Visibility Average

Parcel Type Interior Shape Rectangular Dimensions 50' x 127.5' Topography Level Utilities Typical of Area Flood Hazard Zone X Zoning Code C-1 Zoning Description Neighborhood Commercial

District



Encumbrances/Easements None known Indicators$/Usable Acre $177,656 $/Usable SF $4.08

Verification Confirmed With Jefferson Parish Clerk of Court and Grant Rodriguez with Re/Max Real Estate

Partners, Inc. Confirmed By Support Staff Confirmation Date May 1, 2011

Remarks X This is the purchase of a vacant, cleared and filled, commercially zoned parcel of land site fronting the east side of Florida Avenue between 20th and 21st Streets, one block west of Williams Blvd. in Kenner.



LAND COMPARABLE 2

Property IdentificationProperty/Sale ID 2135/1859 Property Type Commercial Land Address/Location 240 Pollock Street City, State Zip Kenner, Louisiana 70062 Latitude/Longitude 29.975834/-90.267031 Tax ID 920023395 Legal Description Lots 33 & 34, Square 1, Hanson City Subdivision, Jefferson Parish Kenner,

Louisiana.

Transaction DataSale Date February 10, 2011 Sale Status Closed Vendor Kenyon R. Eugene Vendee Carlos G. Metoyer and wife

Kathy Creighton Matoyer


Property DescriptionGross Acres 0.157 Gross SF 6,850 Usable Acres 0.157 Usable SF 6,850 Access Average Rail Access No Water/Port Access No Visibility Average Parcel Type Corner Shape Rectangular Dimensions 50' x 137'

Topography Level Utilities All are available Flood Hazard Zone AE Zoning Code C-1-PO Zoning Description Neighborhood Commercial

District- Planned Unit Development Option

Encumbrances/ Easements

None known




Verification Confirmed With Vendee, Jefferson Parish Assessor and Clerk of Court Confirmed By Support Staff Confirmation Date March 17, 2013

Remarks X This is the purchase of a vacant, commercially zoned parcel of land that forms the southeast corner of 3rd Street (essentially River Road) and Pollock Place in the very southern portion of Kenner near the Mississippi River Levee. This parcel is cleared, filled, level and has good visibility and access from 3rd Street.



LAND COMPARABLE 3

Property IdentificationProperty/Sale ID 2540/2228 Property Type Commercial Land Address/Location 2200 Georgia Avenue City, State Zip Kenner, Louisiana 70065 Latitude/Longitude 29.993566/-90.240492 Legal Description Lot 35-37, Square 457, Highway Park Subdivision, Jefferson Parish, Kenner,

Louisiana.

Transaction DataSale Date September 12, 2013 Sale Status Closed Vendor CE Hernandez Vendee Surasak Tabthong

Property Rights Fee Simple Financing Cash to Seller Recording Number NA# 113-45527 Sale Price $77,500

Property DescriptionGross Acres 0.22 Gross SF 9,563 Usable Acres 0.22 Usable SF 9,563 Access Average Rail Access No Water/Port Access No Visibility Average Parcel Type Interior Shape Rectangular

Dimensions 75' x 127.50' Topography Level Utilities All are available to the site. Flood Hazard Zone AE Zoning Code C-1 Zoning Description Neighborhood Commercial

District Encumbrances/ Easements

None known



LAND COMPARABLE 4


Kenner, Louisiana.






None known



LAND COMPARABLE 5






Dimensions Shape



None known





Location Location adjustments may be required when the locational characteristics of a comparable are different from those of the subject. These characteristics can include general neighborhood characteristics, freeway accessibility, street exposure, corner versus interior lot location, neighboring properties, view amenities, and other factors. The subject fronts the north side of 18th Street and the west side of Oxley Street approximately four blocks west of Williams Blvd. and just east of the Armstrong International Airport. The subject has good access and average visibility. The five land sale comparables are located to the east and south of the subject and airport. Land Sale No. 1 is located just one block west of Williams Blvd. and was adjusted -5% for this slightly superior location. Land Sale No. 2 is located at the very southern end of Kenner just south of 3rd Street and one block north of the Mississippi River Levee and required a 15% adjustment for this inferior location. Land Sale No. 3 is located on the west side of Georgia Ave. just southeast of the major intersection of Williams Blvd. and West Napoleon Avenue. This significantly superior location required a -30% adjustment. Lastly, Land Sale Nos. 4 and 5 are similarly located just south of the Airport on 5th Street and did not require and adjustment.

Size The size adjustment identifies variances in the physical size of the comparables and the subject improvements. Typically, the larger a parcel, the lower the sale price per unit. This inverse relationship is due, in part, to the principle of “economies of scale.” The subject site is 0.59 acres, 25,901 square feet. Land Sale Nos. 1, 2, 3 and 5 are significantly smaller than the subject and were adjusted -5.0%.








Land Size (SF) 6,375 6,850 9,563 27,000 12,000



Called….. -30.0% -38.0% -15.0% -28.0% -27.0%






S S S STransactional AdjustmentsProperty Rights Conveyed Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple











Location Fronting 18th Street at Oxley Street just

east of Airport







Size 25,901 6,375 sf 6,850 sf 9,563 sf 27,000 sf 12,000 sfAdjustment -5.0% -5.0% -5.0% - -5.0%




FALSE FALSE FALSE FALSEZoning RP-1 C-1 HI LI S-I S-I





VALUATION OF BUNDLE I-2


Bundle 11

(Parcel I-2)




Location:

The subject property is located on the north side of 18th Street and the east side of Maria Street just east of the Armstrong International Airport and four blocks west of Williams Boulevard in the southern portion of Kenner, Louisiana.

Number of Parcels / Lots: One Parcel containing one lot

Excess Land: None

Surplus Land: None



Depth: 101’

Topography: Level, cleared and filled. Some parts are lightly wooded.

Drainage: Adequate



Street Frontage / Access Frontage Road Primary Secondary Street Name: 18th Street Maria Street






Landscaping: None









Adjacent Land Uses North: Commercial development

South: Single family and some commercial development

East: Vacant land and single-family development

West: Vacant land and a commercial development


Visibility: Average

Exposure: Average



Zoning Code/Category: R1-P; Planned Unit Development District

Permitted Uses: Primarily single-family development; however, other uses are allowed as defined as “acceptable deviation from surrounding existing development” upon submission and approval of plans.

Zoning Comments:

The R1-P zoning is primarily single-family development; however, due to deed restrictions that will be imposed on the site, any type of residential development will not be allowable uses. A purchaser of the subject property will have to apply for a zoning change or variance to allow for development which will have to be some form of commercial, industrial or recreational use, which are the primary other uses allowed under the these deed restrictions. Further, any and all buildings constructed on the subject site will have extra



noise reduction construction requirements, which are above typical standards.

Deed Restrictions

Permitted Uses:






Zoning Map



Flood Map



Subject Photos

Subject frontage on 18th Street

View of subject looking north from 18th Street






Legally Permissible The subject is zoned R1-P, Planned Unit Development District; however, as mentioned previously, due to deed restrictions that have been imposed on the site, all types of residential development are prohibited on the subject site. A purchaser of the subject property will have to apply for a zoning change or variance to allow for the development of a commercial, industrial or recreational use, which are the primary uses allowed under these deed restrictions. Further, any buildings constructed on the site will require enhanced noise abatement features, which are above typical standards, in its construction.

Financially Feasible Once physically possible and legally permissible uses are determined, an appraiser considers the potential of economic or financial feasibility for the most probable uses via a cost/benefit analysis or through direct market observation. The probable use of the site for secondary commercial or light industrial development generally conforms to the pattern of land uses in the market area, representing a positive in terms of market demand. The subject is two blocks west of Williams Boulevard which is Kenner’s most prominent north/south commercial corridor. A cursory review of the neighborhood and commercial/industrial market in Kenner was made and conditions appear to be generally stable. Even though data suggests that supply exceeds demand in the immediate market area, commercial and/or industrial development is financially feasible; however, any new construction on the subject’s site will have the added cost of enhanced sound proofing requirements. These increased costs of construction will negatively affect demand and market value. Maximally Productive



Among the financially feasible uses, the use that results in the highest value (the maximally productive use) is the highest and best use. Considering these factors, the maximally productive use, as though vacant, is for development as a secondary commercial or light industrial use.

Conclusion of Highest and Best Use as though Vacant The subject’s current RR-1 zoning is moot as no residential uses will be allowed on the site as per deed restrictions to be imposed on the site. As previously stated, the subject consists of one lot measuring 60’ by 101’ and containing 6,049 square feet fronting the north side of 18th Street. Based on current zoning and permissible uses, surrounding land uses, and the subject’s width and depth, the highest and best use, as vacant, is for combination with other adjacent parcels to improve its depth and utility for possible development. Subsequent to the combining with other adjacent parcels, the most likely highest and best use is a secondary commercial and/or light industrial use if and when a zoning change were to be obtained.


BUNDLE I-2 APPRAISAL METHODOLOGY









LAND COMPARABLE 1








District



LAND COMPARABLE 2


Louisiana.








None known



LAND COMPARABLE 3


Louisiana.






None known



LAND COMPARABLE 4


Kenner, Louisiana.






None known



LAND COMPARABLE 5






Dimensions Shape



None known





Location Location adjustments may be required when the locational characteristics of a comparable are different from those of the subject. These characteristics can include general neighborhood characteristics, freeway accessibility, street exposure, corner versus interior lot location, neighboring properties, view amenities, and other factors. The subject fronts the north side of 18th Street and the east side of Maria Street approximately four blocks west of Williams Blvd. and just east of the Armstrong International Airport. The subject has good access and average visibility. The five land sale comparables are located to the east and south of the subject and airport. Land Sale No. 1 is located just one block west of Williams Blvd. and was adjusted -5% for this slightly superior location. Land Sale No. 2 is located at the very southern end of Kenner just south of 3rd Street and one block north of the Mississippi River Levee and required a 15% adjustment for this inferior location. Land Sale No. 3 is located on the west side of Georgia Ave. just southeast of the major intersection of Williams Blvd. and West Napoleon Avenue. This significantly superior location required a -30% adjustment. Lastly, Land Sale Nos. 4 and 5 are similarly located just south of the Airport on 5th Street and did not require and adjustment.

Size The size adjustment identifies variances in the physical size of the comparables and the subject improvements. Typically, the larger a parcel, the lower the sale price per unit. This inverse relationship is due, in part, to the principle of “economies of scale.” The subject site is 0.14 acres, 6,049 square feet. Land Sale No. 4 is significantly larger than the subject and required a 5.0% adjustment.








Land Size (SF) 6,375 6,850 9,563 27,000 12,000



Called….. -30.0% -38.0% -15.0% -28.0% -27.0%






S S S STransactional AdjustmentsProperty Rights Conveyed Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple











Location Fronting 18th Street and Maria St. just

east of Airport







Size 6,049 6,375 sf 6,850 sf 9,563 sf 27,000 sf 12,000 sfAdjustment - - - 5.0% -




FALSE FALSE FALSE FALSEZoning RP-1 C-1 HI LI S-I S-I





VALUATION OF BUNDLE J


Bundle 12

(Parcel J)

BUNDLE J SITE DESCRIPTION



Location:

The subject property is located on the west side of Oxley Street and the south side of 13th Street two blocks east of the Armstrong International Airport and four blocks west of Williams Boulevard in the southern portion of Kenner, Louisiana.

Number of Parcels / Lots: One Parcel containing 15 lots

Excess Land: None

Surplus Land: None



Depth: 120’

Topography: Level, cleared and filled. Some portions are lightly wooded

Drainage: Adequate



Street Frontage / Access Frontage Road Primary Secondary Street Name: Oxley Street 13th Street






Landscaping: None









Adjacent Land Uses North: Vacant land

South: Vacant land

East: Single-family development

West: Vacant Land


Visibility: Average

Exposure: Average



Zoning Code/Category: RR-1; Single-family Residential District

Permitted Uses: Single-family development.

Zoning Comments:

The RR-1 zoning restricts the site to single-family development; however, due to deed restrictions that will be imposed on the site, any type of residential development will not be allowable uses. A purchaser of the subject property will have to apply for a zoning change or variance to allow for development, which will have to be some form of commercial, industrial or recreational use, which are the primary other uses allowed under these deed restrictions. Further, any and all buildings constructed on the subject site will have extra noise reduction construction requirements which are



above typical standards.

Deed Restrictions

Permitted Uses:






Zoning Map



Flood Map

BUNDLE J SUBUECT PHOTOGRAPHS


Subject Photos

Subject as seen looking southwest from Oxley Street

Subject frontage on 13th Street.

BUNDLE J SUBUECT PHOTOGRAPHS


Subject as seen looking northwest from Oxley Street

Subject’s interior from Oxley Street

BUNDLE J ASSESSMENT AND TAX DATA




BUNDLE J HIGHEST AND BEST USE





Legally Permissible The subject is zoned RR-1, Single-Family Residential District; however, as mentioned previously, due to deed restrictions that have been imposed on the site, all types of residential development are prohibited on the subject site. A purchaser of the subject property will have to apply for a zoning change or variance to allow for the development of a commercial, industrial or recreational use, which are the primary uses allowed under these deed restrictions. Further, any buildings constructed on the site will require enhanced noise abatement features, which are above typical standards, in its construction.

Financially Feasible Once physically possible and legally permissible uses are determined, an appraiser considers the potential of economic or financial feasibility for the most probable uses via a cost/benefit analysis or through direct market observation. The probable use of the site for secondary commercial or light industrial development generally conforms to the pattern of land uses in the market area, representing a positive in terms of market demand. The subject is two blocks west of Williams Boulevard which is Kenner’s most prominent north/south commercial corridor. A cursory review of the neighborhood and commercial/industrial market in Kenner was made and conditions appear to be generally stable. Even though data suggests that supply exceeds demand in the immediate market area, commercial and/or industrial development is financially feasible; however, any new construction on the subject’s site will have the added cost of enhanced sound proofing requirements. These increased costs of construction will negatively affect demand and market value.

BUNDLE J HIGHEST AND BEST USE


Maximally Productive Among the financially feasible uses, the use that results in the highest value (the maximally productive use) is the highest and best use. Considering these factors, the maximally productive use, as though vacant, is for development as a secondary commercial or light industrial use.

Conclusion of Highest and Best Use as though Vacant The subject’s current RR-1 zoning is moot as no residential uses will be allowed on the site as per deed restrictions to be imposed on the site. As previously stated, the subject consists of 15 lots, together, measuring 120’ by 300’ and containing 35,999 square feet fronting the west side of Oxley Street. Based on current zoning and permissible uses, surrounding land uses, and the subject’s width and depth, the highest and best use, as vacant, is for combination with other adjacent parcels to improve its depth and utility for possible development. Subsequent to the combining with other adjacent parcels, the most likely highest and best use is a secondary commercial and/or light industrial use if and when a zoning change were to be obtained.


BUNDLE J APPRAISAL METHODOLOGY







BUNDLE J LAND VALUATION








LAND COMPARABLE 1








District



LAND COMPARABLE 2


Louisiana.








None known



LAND COMPARABLE 3


Louisiana.






None known



LAND COMPARABLE 4


Kenner, Louisiana.






None known



LAND COMPARABLE 5






Dimensions Shape



None known





Location Location adjustments may be required when the locational characteristics of a comparable are different from those of the subject. These characteristics can include general neighborhood characteristics, freeway accessibility, street exposure, corner versus interior lot location, neighboring properties, view amenities, and other factors. The subject is located in the square block bounded by 13th Street to the north, Oxley Street to the east, 12th Street to the south and vacant land to the west approximately four blocks west of Williams Blvd. and just east of the Armstrong International Airport. The subject has good access but limited visibility. The five land sale comparables are located to the east and south of the subject and airport. Land Sale No. 1 is located just one block west of Williams Blvd. and was adjusted -5% for this slightly superior location. Land Sale No. 2 is located at the very southern end of Kenner just south of 3rd Street and one block north of the Mississippi River Levee and required a 15% adjustment for this inferior location. Land Sale No. 3 is located on the west side of Georgia Ave. just southeast of the major intersection of Williams Blvd. and West Napoleon Avenue. This significantly superior location required a -30% adjustment. Lastly, Land Sale Nos. 4 and 5 are similarly located just south of the Airport on 5th Street and did not require and adjustment.

Size The size adjustment identifies variances in the physical size of the comparables and the subject improvements. Typically, the larger a parcel, the lower the sale price per unit. This inverse relationship is due, in part, to the principle of “economies of scale.” The subject site is 0.83 acres, 35,999 square feet. Land Sale Nos. 1, 2, 3 and 5 are all significantly smaller than the subject and were adjusted -5.0%. Land Sale No. 4, which is 27,000 square feet, is similar to the subject.





Zoning The subject is zoned RR-1 for single-family use; however, due to deed restrictions, residential uses cannot be developed. The highest and best use of sale comparables are considered to be very similar to the subject property and, as discussed in the Highest and Best Use section of this report, the most likely developmental scenario is to request a rezoning of the subject in order to develop it with a secondary commercial or light industrial use. There is certainly risk involved with purchasing a parcel of land that is not developable as zoned in hopes that a zoning change request will be granted for another use. The appraisers have adjusted the land sales a consistent -25% to account for this risk, as well as, the effort and time associated with obtaining a zoning change or variance for the subject property.

Noise Abatement In addition to the zoning risk discussed above, any future building development of the site must include enhanced noise reduction construction requirements. The only uses allowed in the subject’s location, which has an average airport related noise range of between 65 and 75 decibels, are commercial, industrial, recreational and similar other uses. If any future buildings are constructed on the site, they must be soundproofed per the following regulation, “Measures to achieve an average sound level of 25 decibels must be incorporated into the design and construction of portions of any building where the public is received, office areas, noise sensitive areas or where the normal noise level is low”. In order to properly quantify an adjustment for the noise abatement requirement, property owners, developers and the Marshall & Swift Construction Cost Guide were consulted. The increased cost for noise reduction is estimated to be between $3.75 and $6.50 per square foot of building area. As such, the noise abatement adjustment to the subject site will be estimated by the following calculation. A 4:1 building ratio will be applied to the size of the land sale to estimate the size of a probable commercial or industrial building. An estimated extra soundproofing cost of $5.00 per square foot will be applied to the square footage of the probable building. This increased building cost total will then be divided by the total price paid for the comparable to arrive at the allocated percentage of adjustment. The land sales and their calculated noise abatement adjustments are detailed in the following chart:


Land Size (SF) 6,375 6,850 9,563 27,000 12,000



Called….. -30.0% -38.0% -15.0% -28.0% -27.0%






FALSE FALSE FALSE FALSETransactional AdjustmentsProperty Rights Conveyed Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple











Location Fronting Oxley St at 13th Street just east

of Airport







Size 35,999 6,375 sf 6,850 sf 9,563 sf 27,000 sf 12,000 sfAdjustment -5.0% -5.0% -5.0% - -5.0%




FALSE FALSE FALSE FALSEZoning RR-1 C-1 HI LI S-I S-I







Conclusion From the market data available, four most comparable land sales were selected and adjusted based on pertinent elements of comparison. The adjustments were discussed earlier and are presented in the preceding adjustment grid. The following table summarizes the unadjusted and adjusted sale prices:


Exposure Time and Marketing Periods Based on statistical information about days on market, escrow length, and marketing times gathered through investor surveys, sales verification, and interviews of market participants, marketing and exposure time estimates of 12 months is considered reasonable and appropriate for the subject property.




Airport Noise Properties Bundles 1-12 and Parcels A, B, C-1, C-2, D, E, F, G, H, I-1, I-2 & J

RECONCILIATION


Reconciliation Summary of Value Indications The indicated values from the approaches used and our concluded market values for the subject property are summarized in the following table.

Exposure Time and Marketing Periods Based on statistical information about days on market, escrow length, and marketing times gathered through national investor surveys, sales verification, and interviews of market participants, marketing and exposure time estimates of 12 months is considered reasonable and appropriate for the subject property.

As Is

Value Type Market ValueProperty Rights Appraised Fee SimpleEffective Date of Value May 7, 2015Value Conclusions Bundle 1 (A) $120,000 Bundle 2 (B) $12,000 Bundle 3 (C-1) $64,000 Bundle 4 (C-2) $51,000 Bundle 5 (D) $125,000 Bundle 6 (E) $147,000 Bundle 7 (F) $19,000 Bundle 8 (G) $114,000 Bundle 9 (H) $30,000 Bundle 10 (I-1) $52,000 Bundle 11 (I-2) $14,000 Bundle 12 (J) $72,000

Value Conclusions


GENERAL ASSUMPTIONS AND LIMITING CONDITIONS


General Assumptions and Limiting Conditions This appraisal is subject to the following limiting conditions: 1. The legal description – if furnished to us – is assumed to be correct. 2. No responsibility is assumed for legal matters, questions of survey or title, soil or subsoil

conditions, engineering, availability or capacity of utilities, or other similar technical matters. The appraisal does not constitute a survey of the property appraised. All existing liens and encumbrances have been disregarded and the property is appraised as though free and clear, under responsible ownership and competent management unless otherwise noted.

3. Unless otherwise noted, the appraisal will value the property as though free of

contamination. Valbridge Property Advisors | Argote, Derbes, Graham, Shuffield and Tatje, Inc. will conduct no hazardous materials or contamination inspection of any kind. It is recommended that the client hire an expert if the presence of hazardous materials or contamination poses any concern.

4. The stamps and/or consideration placed on deeds used to indicate sales are in correct

relationship to the actual dollar amount of the transaction. 5. Unless otherwise noted, it is assumed there are no encroachments, zoning violations or

restrictions existing in the subject property. 6. The appraiser is not required to give testimony or attendance in court by reason of this

appraisal, unless previous arrangements have been made. 7. Unless expressly specified in the engagement letter, the fee for this appraisal does not

include the attendance or giving of testimony by Appraiser at any court, regulatory, or other proceedings, or any conferences or other work in preparation for such proceeding. If any partner or employee of Valbridge Property Advisors | Argote, Derbes, Graham, Shuffield and Tatje, Inc. is asked or required to appear and/or testify at any deposition, trial, or other proceeding about the preparation, conclusions or any other aspect of this assignment, client shall compensate Appraiser for the time spent by the partner or employee in appearing and/or testifying and in preparing to testify according to the Appraiser’s then current hourly rate plus reimbursement of expenses.

8. The values for land and/or improvements, as contained in this report, are constituent parts of

the total value reported and neither is (or are) to be used in making a summation appraisal of a combination of values created by another appraiser. Either is invalidated if so used.




9. The dates of value to which the opinions expressed in this report apply are set forth in this

report. We assume no responsibility for economic or physical factors occurring at some point at a later date, which may affect the opinions stated herein. The forecasts, projections, or operating estimates contained herein are based on current market conditions and anticipated short-term supply and demand factors and are subject to change with future conditions.

10. The sketches, maps, plats and exhibits in this report are included to assist the reader in visualizing the property. The appraiser has made no survey of the property and assumed no responsibility in connection with such matters.

11. The information, estimates and opinions, which were obtained from sources outside of this

office, are considered reliable. However, no liability for them can be assumed by the appraiser.

12. Possession of this report, or a copy thereof, does not carry with it the right of publication.

Neither all, nor any part of the content of the report, or copy thereof (including conclusions as to property value, the identity of the appraisers, professional designations, reference to any professional appraisal organization or the firm with which the appraisers are connected), shall be disseminated to the public through advertising, public relations, news, sales, or other media without prior written consent and approval.

13. No claim is intended to be expressed for matters of expertise that would require specialized

investigation or knowledge beyond that ordinarily employed by real estate appraisers. We claim no expertise in areas such as, but not limited to, legal, survey, structural, environmental, pest control, mechanical, etc.

14. This appraisal was prepared for the sole and exclusive use of the client for the function

outlined herein. Any party who is not the client or intended user identified in the appraisal or engagement letter is not entitled to rely upon the contents of the appraisal without express written consent of Valbridge Property Advisors | Argote, Derbes, Graham, Shuffield and Tatje, Inc. and Client. The Client shall not include partners, affiliates, or relatives of the party addressed herein. The appraiser assumes no obligation, liability or accountability to any third party.

15. Distribution of this report is at the sole discretion of the client, but third-parties not listed as

an intended user on the face of the appraisal or the engagement letter may not rely upon the contents of the appraisal. In no event shall client give a third-party a partial copy of the appraisal report. We will make no distribution of the report without the specific direction of the client.

16. This appraisal shall be used only for the function outlined herein, unless expressly authorized

by Valbridge Property Advisors | Argote, Derbes, Graham, Shuffield and Tatje, Inc..




17. This appraisal shall be considered in its entirety. No part thereof shall be used separately or out of context.

18. Unless otherwise noted in the body of this report, this appraisal assumes that the subject property does not fall within the areas where mandatory flood insurance is effective. Unless otherwise noted, we have not completed nor have we contracted to have completed an investigation to identify and/or quantify the presence of non-tidal wetland conditions on the subject property. Because the appraiser is not a surveyor, he or she makes no guarantees, express or implied, regarding this determination.

19. The flood maps are not site specific. We are not qualified to confirm the location of the subject property in relation to flood hazard areas based on the FEMA Flood Insurance Rate Maps or other surveying techniques. It is recommended that the client obtain a confirmation of the subject’s flood zone classification from a licensed surveyor.

20. If the appraisal is for mortgage loan purposes 1) we assume satisfactory completion of improvements if construction is not complete, 2) no consideration has been given for rent loss during rent-up unless noted in the body of this report, and 3) occupancy at levels consistent with our “Income and Expense Projection” are anticipated.

21. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures which would render it more or less valuable. No responsibility is assumed for such conditions or for engineering which may be required to discover them.

22. Our inspection included an observation of the land and improvements thereon only. It was

not possible to observe conditions beneath the soil or hidden structural components within the improvements. We inspected the buildings involved, and reported damage (if any) by termites, dry rot, wet rot, or other infestations as a matter of information, and no guarantee of the amount or degree of damage (if any) is implied. Condition of heating, cooling, ventilation, electrical and plumbing equipment is considered to be commensurate with the condition of the balance of the improvements unless otherwise stated. Should the client have concerns in these areas, it is the client’s responsibility to order the appropriate inspections. The appraiser does not have the skill or expertise to make such inspections and assumes no responsibility for these items.

23. This appraisal does not guarantee compliance with building code and life safety code

requirements of the local jurisdiction. It is assumed that all required licenses, consents, certificates of occupancy or other legislative or administrative authority from any local, state or national governmental or private entity or organization have been or can be obtained or renewed for any use on which the value conclusion contained in this report is based unless specifically stated to the contrary.




24. When possible, we have relied upon building measurements provided by the client, owner, or

associated agents of these parties. In the absence of a detailed rent roll, reliable public records, or “as-built” plans provided to us, we have relied upon our own measurements of the subject improvements. We follow typical appraisal industry methods; however, we recognize that some factors may limit our ability to obtain accurate measurements including, but not limited to, property access on the day of inspection, basements, fenced/gated areas, grade elevations, greenery/shrubbery, uneven surfaces, multiple story structures, obtuse or acute wall angles, immobile obstructions, etc. Professional building area measurements of the quality, level of detail, or accuracy of professional measurement services are beyond the scope of this appraisal assignment.

25. We have attempted to reconcile sources of data discovered or provided during the appraisal process, including assessment department data. Ultimately, the measurements that are deemed by us to be the most accurate and/or reliable are used within this report. While the measurements and any accompanying sketches are considered to be reasonably accurate and reliable, we cannot guarantee their accuracy. Should the client desire a greater level of measuring detail, they are urged to retain the measurement services of a qualified professional (space planner, architect or building engineer). We reserve the right to use an alternative source of building size and amend the analysis, narrative and concluded values (at additional cost) should this alternative measurement source reflect or reveal substantial differences with the measurements used within the report.

26. In the absence of being provided with a detailed land survey, we have used assessment department data to ascertain the physical dimensions and acreage of the property. Should a survey prove this information to be inaccurate, we reserve the right to amend this appraisal (at additional cost) if substantial differences are discovered.

27. If only preliminary plans and specifications were available for use in the preparation of this

appraisal, then this appraisal is subject to a review of the final plans and specifications when available (at additional cost) and we reserve the right to amend this appraisal if substantial differences are discovered.

28. Unless otherwise stated in this report, the value conclusion is predicated on the assumption

that the property is free of contamination, environmental impairment or hazardous materials. Unless otherwise stated, the existence of hazardous material was not observed by the appraiser and the appraiser has no knowledge of the existence of such materials on or in the property. The appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea-formaldehyde foam insulation, or other potentially hazardous materials may affect the value of the property. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required for discovery. The client is urged to retain an expert in this field, if desired.




29. The Americans with Disabilities Act (“ADA”) became effective January 26, 1992. We have not

made a specific compliance survey of the property to determine if it is in conformity with the various requirements of the ADA. It is possible that a compliance survey of the property, together with an analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this could have a negative effect on the value of the property. Since we have no direct evidence relating to this issue, we did not consider possible noncompliance with the requirements of ADA in developing an opinion of value.

30. This appraisal applies to the land and building improvements only. The value of trade

fixtures, furnishings, and other equipment, or subsurface rights (minerals, gas, and oil) were not considered in this appraisal unless specifically stated to the contrary.

31. No changes in any federal, state or local laws, regulations or codes (including, without limitation, the Internal Revenue Code) are anticipated, unless specifically stated to the contrary.

32. Any income and expense estimates contained in the appraisal report are used only for the purpose of estimating value and do not constitute prediction of future operating results. Furthermore, it is inevitable that some assumptions will not materialize and that unanticipated events may occur that will likely affect actual performance.

33. Any estimate of insurable value, if included within the scope of work and presented herein, is

based upon figures developed consistent with industry practices. However, actual local and regional construction costs may vary significantly from our estimate and individual insurance policies and underwriters have varied specifications, exclusions, and non-insurable items. As such, we strongly recommend that the Client obtain estimates from professionals experienced in establishing insurance coverage. This analysis should not be relied upon to determine insurance coverage and we make no warranties regarding the accuracy of this estimate.

34. The data gathered in the course of this assignment (except data furnished by the Client) shall remain the property of the Appraiser. The appraiser will not violate the confidential nature of the appraiser-client relationship by improperly disclosing any confidential information furnished to the appraiser. Notwithstanding the foregoing, the Appraiser is authorized by the client to disclose all or any portion of the appraisal and related appraisal data to appropriate representatives of the Appraisal Institute if such disclosure is required to enable the appraiser to comply with the Bylaws and Regulations of such Institute now or hereafter in effect.




35. You and Valbridge Property Advisors | Argote, Derbes, Graham, Shuffield and Tatje, Inc. both

agree that any dispute over matters in excess of $5,000 will be submitted for resolution by arbitration. This includes fee disputes and any claim of malpractice. The arbitrator shall be mutually selected. If Valbridge Property Advisors | Argote, Derbes, Graham, Shuffield and Tatje, Inc. and the client cannot agree on the arbitrator, the presiding head of the Local County Mediation & Arbitration panel shall select the arbitrator. Such arbitration shall be binding and final. In agreeing to arbitration, we both acknowledge that, by agreeing to binding arbitration, each of us is giving up the right to have the dispute decided in a court of law before a judge or jury. In the event that the client, or any other party, makes a claim against Argote, Derbes, Graham, Shuffield and Tatje, Inc. or any of its employees in connections with or in any way relating to this assignment, the maximum damages recoverable by such claimant shall be the amount actually received by Valbridge Property Advisors | Argote, Derbes, Graham, Shuffield and Tatje, Inc. for this assignment, and under no circumstances shall any claim for consequential damages be made.

36. Valbridge Property Advisors | Argote, Derbes, Graham, Shuffield and Tatje, Inc. shall have no obligation, liability, or accountability to any third party. Any party who is not the “client” or intended user identified on the face of the appraisal or in the engagement letter is not entitled to rely upon the contents of the appraisal without the express written consent of Valbridge Property Advisors | Argote, Derbes, Graham, Shuffield and Tatje, Inc.. “Client” shall not include partners, affiliates, or relatives of the party named in the engagement letter. Client shall hold Valbridge Property Advisors | Argote, Derbes, Graham, Shuffield and Tatje, Inc. and its employees harmless in the event of any lawsuit brought by any third party, lender, partner, or part-owner in any form of ownership or any other party as a result of this assignment. The client also agrees that in case of lawsuit arising from or in any way involving these appraisal services, client will hold Valbridge Property Advisors | Argote, Derbes, Graham, Shuffield and Tatje, Inc. harmless from and against any liability, loss, cost, or expense incurred or suffered by Valbridge Property Advisors | Argote, Derbes, Graham, Shuffield and Tatje, Inc. in such action, regardless of its outcome.

37. The Valbridge Property Advisors office responsible for the preparation of this report is

independently owned and operated by Argote, Derbes, Graham, Shuffield and Tatje, Inc.. Neither Valbridge Property Advisors, Inc., nor any of its affiliates has been engaged to provide this report. Valbridge Property Advisors, Inc. does not provide valuation services, and has taken no part in the preparation of this report.

38. If any claim is filed against any of Valbridge Property Advisors, Inc., a Florida Corporation, its affiliates, officers or employees, or the firm providing this report, in connection with, or in any way arising out of, or relating to, this report, or the engagement of the firm providing this report, then (1) under no circumstances shall such claimant be entitled to consequential, special or other damages, except only for direct compensatory damages, and (2) the maximum amount of such compensatory damages recoverable by such claimant shall be the amount actually received by the firm engaged to provide this report.




39. This report and any associated work files may be subject to evaluation by Valbridge Property

Advisors, Inc., or its affiliates, for quality control purposes. 40. Acceptance and/or use of this appraisal report constitutes acceptance of the foregoing

general assumptions and limiting conditions.


CERTIFICATION


Certification I certify that, to the best of my knowledge and belief:

- the statements of fact contained in this report are true and correct.

- the reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, unbiased professional analyses, opinions and conclusions.

- I have no present or prospective interest or bias in the property that is the subject of this report, and I have no personal interest with respect to the parties involved.

- my compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event. My compensation is not contingent on an action or event resulting from the analyses, opinions, or conclusions in, or the use of, this report. This appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan.

- my analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, and in conformity with the requirements of the state of Louisiana for State Licensed Real Estate Appraisers.

- I have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment.

- I have made a personal inspection of the property that is the subject of this report.

- I was assisted in the preparation of this report by Woodrow Crochet III, Staff Appraiser, Louisiana Real Estate Appraiser Trainee License No. T2835, Appraisal Institute MAI Candidate No. 511261.

- the reported analyses, opinions, and conclusions were developed, and the report has been prepared in conformity with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute.

- the use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.


CERTIFICATION


- As of the date of this report, Henry W. Tatje, III, MAI has completed the requirements under the continuing education program of the Appraisal Institute.

Henry W. Tatje, III, MAI Woodrow C. Crochet, III Louisiana State Certified Louisiana Certified General General Real Estate Appraiser #G0321 Appraiser Trainee License #T-2835


ADDENDA


Addenda Noise Ordinance and Deed Restriction Detail Glossary Qualifications

Henry W. Tatje III, MAI - Senior Managing Director Woody Crochet III, - Staff Appraiser

Information on Valbridge Property Advisors Office Locations


ADDENDA



ADDENDA


Glossary Definitions are taken from the Dictionary of Real Estate Appraisal, 5th Edition (Dictionary), the Uniform Standards of Professional Appraisal Practice (USPAP) and Building Owners and Managers Association International (BOMA).

Absolute Net Lease A lease in which the tenant pays all expenses including structural maintenance, building reserves, and management; often a long-term lease to a credit tenant. (Dictionary)

Additional Rent Any amounts due under a lease that is in addition to base rent. Most common form is operating expense increases. (Dictionary)

Amortization The process of retiring a debt or recovering a capital investment, typically though scheduled, systematic repayment of the principal; a program of periodic contributions to a sinking fund or debt retirement fund. (Dictionary)

As Is Market Value The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date. (Dictionary)

Base (Shell) Building The existing shell condition of a building prior to the installation of tenant improvements. This condition varies from building to building, landlord to landlord, and generally involves the level of finish above the ceiling grid. (Dictionary)

Base Rent The minimum rent stipulated in a lease. (Dictionary)

Base Year The year on which escalation clauses in a lease are based. (Dictionary)

Building Common Area The areas of the building that provide services to building tenants but which are not included in the rentable area of any specific tenant. These areas may include, but shall not be limited to, main and auxiliary lobbies, atrium spaces at the level of the finished floor, concierge areas or security desks, conference rooms, lounges or vending areas food service facilities, health or fitness centers, daycare facilities, locker or shower facilities, mail rooms, fire control rooms, fully enclosed courtyards outside the exterior walls, and building core and service areas such as fully enclosed mechanical or equipment rooms. Specifically excluded from building common areas are; floor common areas, parking spaces,

portions of loading docks outside the building line, and major vertical penetrations. (BOMA)

Building Rentable Area The sum of all floor rentable areas. Floor rentable area is the result of subtracting from the gross measured area of a floor the major vertical penetrations on that same floor. It is generally fixed for the life of the building and is rarely affected by changes in corridor size or configuration. (BOMA)

Certificate of Occupancy (COO) A statement issued by a local government verifying that a newly constructed building is in compliance with all codes and may be occupied.

Common Area (Public) Factor In a lease, the common area (public) factor is the multiplier to a tenant’s useable space that accounts for the tenant’s proportionate share of the common area (restrooms, elevator lobby, mechanical rooms, etc.). The public factor is usually expressed as a percentage and ranges from a low of 5 percent for a full tenant to as high as 15 percent or more for a multi-tenant floor. Subtracting one (1) from the quotient of the rentable area divided by the useable area yields the load (public) factor. At times confused with the “loss factor” which is the total rentable area of the full floor less the useable area divided by the rentable area. (BOMA)

Common Area Maintenance (CAM) The expense of operating and maintaining common areas; may or may not include management charges and usually does not include capital expenditures on tenant improvements or other improvements to the property. CAM can be a line-item expense for a group of items that can include maintenance of the parking lot and landscaped areas and sometimes the exterior walls of the buildings. CAM can refer to all operating expenses. CAM can refer to the reimbursement by the tenant to the landlord for all expenses reimbursable under the lease. Sometimes reimbursements have what is called an administrative load. An example would be a 15 percent addition to total operating expenses, which are then prorated among tenants. The administrative load, also called an administrative and marketing fee, can be a substitute for or an addition to a management fee. (Dictionary)


ADDENDA


Condominium A form of ownership in which each owner possesses the exclusive right to use and occupy an allotted unit plus an undivided interest in common areas. A multiunit structure, or a unit within such a structure, with a condominium form of ownership. (Dictionary)

Conservation Easement An interest in real property restricting future land use to preservation, conservation, wildlife habitat, or some combination of those uses. A conservation easement may permit farming, timber harvesting, or other uses of a rural nature to continue, subject to the easement. In some locations, a conservation easement may be referred to as a conservation restriction. (Dictionary)

Contributory Value The change in the value of a property as a whole, whether positive or negative, resulting from the addition or deletion of a property component. Also called deprival value in some countries. (Dictionary)

Debt Coverage Ratio (DCR) The ratio of net operating income to annual debt service (DCR = NOI/Im), which measures the relative ability to a property to meet its debt service out of net operating income. Also called Debt Service Coverage Ratio (DSCR). A larger DCR indicates a greater ability for a property to withstand a downturn in revenue, providing an improved safety margin for a lender. (Dictionary)

Deed Restriction A provision written into a deed that limits the use of land. Deed restrictions usually remain in effect when title passes to subsequent owners. (Dictionary)

Depreciation 1) In appraising, the loss in a property value from

any cause; the difference between the cost of an improvement on the effective date of the appraisal and the market value of the improvement on the same date. 2) In accounting, an allowance made against the loss in value of an asset for a defined purpose and computed using a specified method. (Dictionary)

Disposition Value The most probable price that a specified interest in real property is likely to bring under the following conditions: Consummation of a sale within a exposure time

specified by the client;

The property is subjected to market conditions prevailing as of the date of valuation;

Both the buyer and seller are acting prudently and knowledgeably;

The seller is under compulsion to sell; The buyer is typically motivated; Both parties are acting in what they consider to be

their best interests; An adequate marketing effort will be made during

the exposure time specified by the client; Payment will be made in cash in U.S. dollars or in

terms of financial arrangements comparable thereto; and

The price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. (Dictionary)

Easement The right to use another’s land for a stated purpose. (Dictionary)

EIFS Exterior Insulation Finishing System. This is a type of exterior wall cladding system. Sometimes referred to as dry-vit.

Effective Date The date at which the analyses, opinions, and advice in an appraisal, review, or consulting service apply. 2) In a lease document, the date upon which the lease goes into effect. (Dictionary)

Effective Gross Income (EGI) The anticipated income from all operations of the real property after an allowance is made for vacancy and collection losses and an addition is made for any other income. (Dictionary)

Effective Rent The rental rate net of financial concessions such as periods of no rent during the lease term and above- or below-market tenant improvements (TIs). (Dictionary)

EPDM Ethylene Diene Monomer Rubber. A type of synthetic rubber typically used for roof coverings. (Dictionary)

Escalation Clause A clause in an agreement that provides for the adjustment of a price or rent based on some event or index. e.g., a provision to increase rent if operating expenses increase; also called an expense recovery clause or stop clause. (Dictionary)


ADDENDA


Estoppel Certificate A statement of material factors or conditions of which another person can rely because it cannot be denied at a later date. In real estate, a buyer of rental property typically requests estoppel certificates from existing tenants. Sometimes referred to as an estoppel letter. (Dictionary)

Excess Land Land that is not needed to serve or support the existing improvement. The highest and best use of the excess land may or may not be the same as the highest and best use of the improved parcel. Excess land may have the potential to be sold separately and is valued separately. (Dictionary)

Expense Stop A clause in a lease that limits the landlord’s expense obligation, which results in the lessee paying any operating expenses above a stated level or amount. (Dictionary)

Exposure Time 1) The time a property remains on the market. 2) The estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective estimate based on an analysis of past events assuming a competitive and open market. (Dictionary)

Extraordinary Assumption An assumption, directly related to a specific assignment, which, if found to be false, could alter the appraiser’s opinions or conclusions. Extraordinary assumptions presume as fact otherwise uncertain information about physical, legal, or economic characteristics of the subject property; or about conditions external to the property such as market conditions or trends; or about the integrity of data used in an analysis. (Dictionary)

Fee Simple Estate Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. (Dictionary)

Floor Common Area Areas on a floor such as washrooms, janitorial closets, electrical rooms, telephone rooms, mechanical rooms, elevator lobbies, and public corridors which are available primarily for the use of tenants on that floor. (BOMA)

Full Service (Gross) Lease A lease in which the landlord receives stipulated rent and is obligated to pay all of the property’s operating and fixed expenses; also called a full service lease. (Dictionary)

Going Concern Value The market value of all the tangible and intangible

assets of an established and operating business with an indefinite life, as if sold in aggregate; more accurately termed the market value of the going concern.

The value of an operating business enterprise. Goodwill may be separately measured but is an integral component of going-concern value when it exists and is recognizable. (Dictionary)

Gross Building Area The total constructed area of a building. It is generally not used for leasing purposes (BOMA)

Gross Measured Area The total area of a building enclosed by the dominant portion (the portion of the inside finished surface of the permanent outer building wall which is 50 percent or more of the vertical floor-to-ceiling dimension, at the given point being measured as one moves horizontally along the wall), excluding parking areas and loading docks (or portions of the same) outside the building line. It is generally not used for leasing purposes and is calculated on a floor by floor basis. (BOMA)

Gross Up Method A method of calculating variable operating expense in income-producing properties when less than 100 percent occupancy is assumed. The gross up method approximates the actual expense of providing services to the rentable area of a building given a specified rate of occupancy. (Dictionary)

Gross Retail Sellout The sum of the appraised values of the individual units in a subdivision, as if all of the units were completed and available for retail sale, as of the date of the appraisal. The sum of the retail sales includes an allowance for lot premiums, if applicable, but excludes all allowances for carrying costs. (Dictionary)

Ground Lease A lease that grants the right to use and occupy land. Improvements made by the ground lessee typically revert to the ground lessor at the end of the lease term. (Dictionary)


ADDENDA


Ground Rent The rent paid for the right to use and occupy land according to the terms of a ground lease; the portion of the total rent allocated to the underlying land. (Dictionary)

HVAC Heating, ventilation, air conditioning. A general term encompassing any system designed to heat and cool a building in its entirety.

Highest and Best Use The reasonably probable and legal use of vacant land or an improved property that is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are 1) legal permissibility, 2) physical possibility, 3) financial feasibility, and 4) maximally profitability. Alternatively, the probable use of land or improved –specific with respect to the user and timing of the use–that is adequately supported and results in the highest present value. (Dictionary)

Hypothetical Condition That which is contrary to what exists but is supposed for the purpose of analysis. Hypothetical conditions assume conditions contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. (Dictionary)

Industrial Gross Lease A lease of industrial property in which the landlord and tenant share expenses. The landlord receives stipulated rent and is obligated to pay certain operating expenses, often structural maintenance, insurance and real estate taxes as specified in the lease. There are significant regional and local differences in the use of this term. (Dictionary)

Insurable Value A type of value for insurance purposes. (Dictionary) (Typically this includes replacement cost less basement excavation, foundation, underground piping and architect’s fees).

Investment Value The value of a property interest to a particular investor or class of investors based on the investor’s specific requirements. Investment value may be different from market value because it depends on a set of investment criteria that are not necessarily typical of the market. (Dictionary)

Just Compensation In condemnation, the amount of loss for which a property owner is compensated when his or her property is taken. Just compensation should put the owner in as good a position as he or she would be if the property had not been taken. (Dictionary)

Leased Fee Interest A freehold (ownership interest) where the possessory interest has been granted to another party by creation of a contractual landlord-tenant relationship (i.e., a lease). (Dictionary)

Leasehold Interest The tenant’s possessory interest created by a lease. (Dictionary)

Lessee (Tenant) One who has the right to occupancy and use of the property of another for a period of time according to a lease agreement. (Dictionary)

Lessor (Landlord) One who conveys the rights of occupancy and use to others under a lease agreement. (Dictionary)

Liquidation Value The most probable price that a specified interest in real property should bring under the following conditions:

Consummation of a sale within a short period. The property is subjected to market conditions

prevailing as of the date of valuation. Both the buyer and seller are acting prudently and

knowledgeably. The seller is under extreme compulsion to sell. The buyer is typically motivated. Both parties are acting in what they consider to be

their best interests. A normal marketing effort is not possible due to the

brief exposure time. Payment will be made in cash in U.S. dollars or in

terms of financial arrangements comparable thereto.

The price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. (Dictionary)

Loan to Value Ratio (LTV) The amount of money borrowed in relation to the total market value of a property. Expressed as a percentage of the loan amount divided by the property value. (Dictionary)


ADDENDA


Major Vertical Penetrations Stairs, elevator shafts, flues, pipe shafts, vertical ducts, and the like, and their enclosing walls. Atria, lightwells and similar penetrations above the finished floor are included in this definition. Not included, however, are vertical penetrations built for the private use of a tenant occupying office areas on more than one floor. Structural columns, openings for vertical electric cable or telephone distribution, and openings for plumbing lines are not considered to be major vertical penetrations. (BOMA)

Market Rent The most probable rent that a property should bring in a competitive and open market reflecting all conditions and restrictions of the lease agreement including permitted uses, use restrictions, expense obligations; term, concessions, renewal and purchase options and tenant improvements (TIs). (Dictionary)

Market Value The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: a. Buyer and seller are typically motivated; b. Both parties are well informed or well advised, and

acting in what they consider their own best interests;

c. A reasonable time is allowed for exposure in the open market;

d. Payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; and

e. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

Market Value As If Complete Market value as if complete means the market value of the property with all proposed construction, conversion or rehabilitation hypothetically completed or under other specified hypothetical conditions as of the date of the appraisal. With regard to properties wherein anticipated market conditions indicate that stabilized occupancy is not likely as of the date of completion, this estimate of value shall reflect the market value of the property as if complete and prepared for occupancy by tenants.

Market Value As If Stabilized Market value as if stabilized means the market value of the property at a current point and time when all improvements have been physically constructed and the property has been leased to its optimum level of long term occupancy.

Marketing Time An opinion of the amount of time it might take to sell a real or personal property interest at the concluded market value level during the period immediately after the effective date of the appraisal. Marketing time differs from exposure time, which is always presumed to precede the effective date of an appraisal. (Advisory Opinion 7 of the Standards Board of the Appraisal Foundation and Statement on Appraisal Standards No. 6, “Reasonable Exposure Time in Real Property and Personal Property Market Value Opinions” address the determination of reasonable exposure and marketing time). (Dictionary)

Master Lease A lease in which the fee owner leases a part or the entire property to a single entity (the master lease) in return for a stipulated rent. The master lessee then leases the property to multiple tenants. (Dictionary)

Modified Gross Lease A lease in which the landlord receives stipulated rent and is obligated to pay some, but not all, of the property’s operating and fixed expenses. Since assignment of expenses varies among modified gross leases, expense responsibility must always be specified. In some markets, a modified gross lease may be called a double net lease, net net lease, partial net lease, or semi-gross lease. (Dictionary)

Operating Expense Ratio The ratio of total operating expenses to effective gross income (TOE/EGI); the complement of the net income ratio, i.e., OER = 1 – NIR (Dictionary)

Option A legal contract, typically purchased for a stated consideration, that permits but does not require the holder of the option (known as the optionee) to buy, sell, or lease real property for a stipulated period of time in accordance with specified terms; a unilateral right to exercise a privilege. (Dictionary)

Partial Interest Divided or undivided rights in real estate that represent less than the whole (a fractional interest). (Dictionary)


ADDENDA


Pass Through A tenant’s portion of operating expenses that may be composed of common area maintenance (CAM), real estate taxes, property insurance, and any other expenses determined in the lease agreement to be paid by the tenant. (Dictionary)

Potential Gross Income (PGI) The total income attributable to real property at full occupancy before vacancy and operating expenses are deducted. (Dictionary)

Prospective Future Value Upon Completion Market value “upon completion” is a prospective future value estimate of a property at a point in time when all of its improvements are fully completed. It assumes all proposed construction, conversion, or rehabilitation is hypothetically complete as of a future date when such effort is projected to occur. The projected completion date and the value estimate must reflect the market value of the property in its projected condition, i.e., completely vacant or partially occupied. The cash flow must reflect lease-up costs, required tenant improvements and leasing commissions on all areas not leased and occupied.

Prospective Future Value Upon Stabilization Market value “upon stabilization” is a prospective future value estimate of a property at a point in time when stabilized occupancy has been achieved. The projected stabilization date and the value estimate must reflect the absorption period required to achieve stabilization. In addition, the cash flows must reflect lease-up costs, required tenant improvements and leasing commissions on all unleased areas.

Replacement Cost The estimated cost to construct, at current prices as of the effective appraisal date, a substitute for the building being appraised, using modern materials and current standards, design, and layout. (Dictionary)

Reproduction Cost The estimated cost to construct, at current prices as of the effective date of the appraisal, an exact duplicate or replica of the building being appraised, using the same materials, construction standards, design, layout, and quality of workmanship and embodying all of the deficiencies, super-adequacies, and obsolescence of the subject building. (Dictionary)

Retrospective Value Opinion A value opinion effective as of a specified historical date. The term does not define a type of value. Instead, it identifies a value opinion as being effective at some

specific prior date. Value as of a historical date is frequently sought in connection with property tax appeals, damage models, lease renegotiation, deficiency judgments, estate tax, and condemnation. Inclusion of the type of value with this term is appropriate, e.g., “retrospective market value opinion.” (Dictionary)

Sandwich Leasehold Estate The interest held by the original lessee when the property is subleased to another party; a type of leasehold estate. (Dictionary)

Sublease An agreement in which the lessee (i.e., the tenant) leases part or all of the property to another party and thereby becomes a lessor. (Dictionary)

Subordination A contractual arrangement in which a party with a claim to certain assets agrees to make his or her claim junior, or subordinate, to the claims of another party. (Dictionary)

Substantial Completion Generally used in reference to the construction of tenant improvements (TIs). The tenant’s premises are typically deemed to be substantially completed when all of the TIs for the premises have been completed in accordance with the plans and specifications previously approved by the tenant. Sometimes used to define the commencement date of a lease.

Surplus Land Land that is not currently needed to support the existing improvement but cannot be separated from the property and sold off. Surplus land does not have an independent highest and best use and may or may not contribute value to the improved parcel. (Dictionary)

Triple Net (Net Net Net) Lease A lease in which the tenant assumes all expenses (fixed and variable) of operating a property except that the landlord is responsible for structural maintenance, building reserves, and management. Also called NNN, triple net lease, or fully net lease. (Dictionary) (The market definition of a triple net lease varies; in some cases tenants pay for items such as roof repairs, parking lot repairs, and other similar items.)

Usable Area The measured area of an office area, store area or building common area on a floor. The total of all the usable areas or a floor shall equal floor usable area of that same floor. The amount of floor usable area can


ADDENDA


vary over the life of a building as corridors expand and contract and as floors are remodeled. (BOMA)

Value-in-Use The value of a property assuming a specific use, which may or may not be the property’s highest and best use

on the effective date of the appraisal. Value in use may or may not be equal to market value but is different conceptually. (Dictionary)


ADDENDA


QUALIFICATIONS OF THE APPRAISER

HENRY W. TATJE, III, MAI

BUSINESS ADDRESS: 512 North Causeway Boulevard, Metairie, Louisiana 70001

E-MAIL ADDRESS: [email protected]

WEB SITE adgst.com

BUSINESS TELEPHONE: 504 833-8234 ext 218 or 504 830-3864 (direct line)

FAX NUMBER: 504-830-3870

BUSINESS EXPERIENCE:

Appraiser – Realtor – Max J. Derbes, Inc. 1976 to 1983

Appraiser – Secretary/Treasurer – Metropolitan Valuation Services, Inc. 1983 to Present

Appraiser – Partner – Argote, Derbes, Graham, Shuffield and Tatje 1986 to Present

Broker – Partner – Derbes-Tatje, Realtors 1983 to Present

Broker – Owner – Cypress Property Management 1995 to Present

Appraiser – Senior Managing Director – Valbridge Property Advisors 2013 to Present

EDUCATION:

Graduate of Holy Cross High School, New Orleans, Louisiana 1972 Bachelor of Business Studies, Tulane University, New Orleans, Louisiana 1976 American Institute of Real Estate Appraisers: Course IA - Basic Appraisal Principles Methods and Techniques 1976 Course IB - Capitalization Theory and Techniques 1977 Course 2 - Urban Properties: Application of Appraisal Theory and Technique 1978 Course 6 - Introduction to Real Estate Investment Analysis 1981 Seminar on Statistical Analysis for Real Estate Market Decisions 1977 Various other Seminars and Courses related to Continuing Education 1976 to Present

PROFESSIONAL ASSOCIATIONS:

American Institute of Real Estate Appraisers MAI Certificate No. 7026 State of Louisiana General Real Estate Appraiser License/Certification No. G0321 National Association of Realtors Louisiana Realtors Association Saints Board of Realtors Local Director 1981 to 1984 Treasurer 1985 Secretary 1986 Member of Various Committees 1981 to 1987 Jefferson Board of Realtors The Chamber - New Orleans and River Region 1991 to Present Chairman - River Area Council 1993


ADDENDA


QUALIFICATIONS OF THE APPRAISER (Continued)

HENRY W. TATJE, III, MAI APPROVED APPRAISER FOR:

Chase Bank Bank Plus Mississippi River Bank Hancock Bank First American Bank – Vacherie G E Capital Public Finance First National Bank U.S.A. Regions Bank Capital One Bank Bank of New Orleans First NBC Bank Community Bank First Bank & Trust - New Orleans Whitney National Bank Fidelity Homestead Greater New Orleans Homestead State of Louisiana Department of Transportation and Development

APPRAISAL ASSIGNMENTS COMPLETED FOR:

Department of the Navy U.S. Department of Justice U.S. Fish & Wildlife Service GCR & Associates U.S. Army Corps of Engineers New Orleans Aviation Board St. John the Baptist Parish C.S.X. Corporation St. Charles Parish Marathon Oil Company City of New Orleans Port of New Orleans Chevron Oil Port of South Louisiana U.S. Internal Revenue Service Union Pacific Railroad Travelers Insurance F.D.I.C City of Kenner North Houston Bank. Federal Bureau of Investigation (FBI) Nalco Chemical Company Schlumberger Offshore Services Aristech Chemical Corp. Phelps Dodge Corp. Stolt-Neilson Electro-Coal Transfer Co.

MAJOR PROJECTS: Appraisals of numerous large river front industrial sites and parcels of river batture fronting the Mississippi River in the industrial corridor between Baton Rouge and the mouth of the River, for various private and government entities. Review of all commercial appraisals for site acquisitions over a 35 square block area in Mid City of New Orleans, Louisiana for New VA and LSU Hospitals. Appraisals of numerous levee and drainage servitudes over varying properties for levee and drainage improvements in Jefferson, Plaquemines and St. Charles Parishes, post Hurricane Katrina, for U.S. Army Corps of Engineers and local levee districts, in southeast Louisiana. Various other appraisal assignments, including single and multifamily residential, commercial, industrial, and vacant land for mortgage lending, expropriation, counseling, and other purposes. Appraisals of Salt Domes and related pipelines in Louisiana and Texas for the U.S. Army Corps of Engineers for Strategic Oil Storage Program in the 1970’s and early 1980’s.


ADDENDA



HENRY W. TATJE, III, MAI COURT EXPERIENCE: Qualified as an expert witness in the following jurisdictions: United States Court, Eastern District of Louisiana 19th JDC, East Baton Rouge Parish, State of Louisiana 29th JDC, St. Charles Parish, State of Louisiana 40th JDC, St. John the Baptist Parish, State of Louisiana 24th JDC, Jefferson Parish, State of Louisiana 25th JDC, Plaquemines Parish, State of Louisiana Civil District Court, Parish of Orleans, State of Louisiana United States Court of Federal Claims COURT APPEARANCES AND DEPOSITIONS SINCE 1985: Sid-Mar’s Restaurant & Lounge, Inc., Marion Gemelli Burgess and Sidney Kent Burgess vs. State of Louisiana, Through the Governor and/or the Division of Administration, State Land Office 24th JDC, Division K, Jefferson Parish, State of Louisiana Docket No. 632-032 Summary Appraisal Report, Vacant Commercial Site, 1824 Orpheum Avenue, Lots 1, 2 and 3, Square 128, Metairieville Subdivision, Metairie, Louisiana Deposition: July 16, 2009 Court Testimony: November 12, 2014 Board of Supervisors of Louisiana State University and Agricultural and Mechanical College vs. Marshall F. Gerson, et al Civil District Court, Parish of Orleans, State of Louisiana, Division I Case No. 2011-2614 Review of Appraisals of Small One Story Commercial Building, 1831-35 Tulane Avenue, New Orleans, Louisiana, For Property Acquisitions for Proposed New LSU Medical Center Court Testimony: October 28, 2014 Board of Supervisors of Louisiana State University College vs Southern Electronics Supply, Inc. Civil District Court, Parish of Orleans, State of Louisiana, Division L Case No. 2011-1631 Technical and Factual Review of Appraisal of Office/Warehouse/Service Building Property at 1901 Tulane Avenue, New Orleans, Louisiana Deposition: September 5, 2014 Court Testimony: October 24, 2014 Edwin and Catherine Pearson vs. Jack A. Blossman, Sr., J.A.B.T.F., Inc., Robert L. Torres, Sr., and Tammany Holding Corporation 22 JDC, Division C, Parish of St. Tammany, State of Louisiana Case No. 99-13849 Appraisal of ±7.2 Acre Vacant Parcel of Land, Oak Harbor Blvd., at Howze Beach Road, Slidell, Louisiana Court Testimony: October 23, 2014


ADDENDA



HENRY W. TATJE, III, MAI COURT APPEARANCES AND DEPOSITIONS SINCE 1985 (Continued):

Board of Supervisors of Louisiana State University and Agricultural and Mechanical College vs. Michael P. Villavaso Civil District Court, Parish of Orleans, State of Louisiana, Division D Case No. 2011-3852 Review of Appraisals of Vacant Commercial Site, 1837 Tulane Avenue, & 316-68 S. Roman Street, New Orleans, Louisiana For Property Acquisitions for Proposed New LSU Medical Center Deposition: June 12, 2014 Proffer of Testimony: June 12, 2014 Catherine Lebeouf Moore, Troy Lebeouf, Charmaine Lebeouf, Barbara Lebeouf, and The Succession of Elmo Lebeouf, Jr. vs. Lebeouf Real Estate Company, et al 23rd JDC, Section D, St. James Parish, State of Louisiana Docket No. 35191 Retrospective Appraisal, ±170 Acre Primarily Vacant River Front Site, at Brookstown Community, West Bank Of Mississippi River, Near River Mile 164.5 and Village Of St. James, St. James Parish, Louisiana Deposition: April 29, 2014 Court Date: May 14, 2014 Board of Supervisors of Louisiana State University and Agricultural and Mechanical College vs. Tukandu, Inc., et al Civil District Court, Parish of Orleans, State of Louisiana, Division M Case No. 11-1588 Review of Updated Appraisals of Small Two Story Commercial/Rooming House Bldg, 1926-34 Canal Street, New Orleans, Louisiana for Property Acquisitions for Proposed New LSU Medical Center Deposition: April 10, 2014 Board of Supervisors of Louisiana State University and Agricultural and Mechanical College vs. DEO Company, Inc., et al Civil District Court, Parish of Orleans, State of Louisiana, Division G Case No. 2010-8717 Technical and Factual Review Appraisals of Tenant Occupied Commercial Property at 2217-31 Tulane Avenue, New Orleans, Louisiana Court Testimony: February 5, 2014 St. Bernard Parish Government, et al vs. The United States of America United States Court of Federal Claims Case No. 05-1119L Appraisal of Flood Damage Appropriate Rent Payment Resulting from a Temporary flowage easement over eleven varying properties as a result of flooding caused exclusively by the breaching of the levees of the Mississippi River Gulf Outlet Deposition: September 27, 2013 Parish of Jefferson vs. Katie Sternberger 24th JDC Division I, Jefferson Parish, Louisiana Docket No. 719-094 Appraisal of Single Family Residence at 1008 N. Lester Avenue, Metairie, Louisiana for Expropriation Court Testimony: July 12, 2013


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Religious & Celeste, LLC vs. Cambrie Celeste, LLC, Steven Anderson, et al United States Bankruptcy Court for Eastern District of Louisiana Section B Case No. 10-11958 Appraisal of 12 Unit Condominium Project, 621 Celeste Street, New Orleans, Louisiana Court Testimony: April 22, 2013 St. Charles Parish Land vs. City of New Orleans by and through the New Orleans Aviation Board 29th JDC, Division D, St. Charles Parish, Louisiana Case No. 72,824 Retrospective Appraisal of Wetlands and Canal Areas under Runway, Louis Armstrong Airport for Expropriation, St. Charles Parish, Louisiana Deposition: October 3, 2011 Court Testimony: March 6, 2013 Board of Supervisors of Louisiana State University and Agricultural and Mechanical College vs. Southern Electronics Supply, Inc. (F/K/A Southern Radio Supply Company, Inc.), et al CDC Orleans Parish Division L Section 6 Docket # 2011-1631 Review of Appraisal of Office/Warehouse Building at 1909 Tulane Avenue, New Orleans, Louisiana for Expropriation for New LSU Hospital Deposition: September 5, 2012 Hudson Americas, LLC vs. B-G & G Investors IV and V U.S. Bankruptcy Court, Eastern District of Louisiana Case Nos. 12-10307 & 12-10308 Appraisal of Two Apartment Complexes, New Orleans, Louisiana Court Testimony: July 27, 2012 Sugar Hill vs. United States United States Court of Federal Claims Case No. 09-690 (Fed Cl.) Appraisal of Recreational Vehicle Park, Convent, Louisiana Deposition - December 22, 2011 Court Testimony January 26, 2012 Phillip Family et al vs. Bayou Fleet Partnership 29th JDC, St. Charles Parish, Louisiana Appraisal of Riparian Rights to Mississippi River Batture, Hahnville, Louisiana Deposition - October 24, 2011 Court Testimony - October 26, 2011 Entergy Louisiana LLC vs. Harvey Canal Holdings III, LLC, et al 24th JDC, Jefferson Parish, State of Louisiana Appraisal Review of Power Line Right-of-Way Over Vacant Industrial Land, Harvey, Louisiana Deposition - September 26, 2011 Board of Supervisors of LSU vs. 2400 Canal, LLC Orleans Parish Civil District Court, State of Louisiana Review of Appraisals of 6 Story Office Building, New Orleans, Louisiana Deposition - September 8, 2011


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Board of Supervisors of LSU vs. Oreo, LLC Orleans Parish Civil District Court, State of Louisiana Appraisal Review of Small Improved Commercial Property, New Orleans, Louisiana Deposition - May 12, 2011 West Jefferson Levee District vs. Allstate Financial Company/Choice Property and Advance Mortgage Co., LLC 24th JDC, Jefferson Parish, Louisiana Appraisal of Vacant Wetland Acreage, Avondale, Louisiana Deposition - May 3, 2011 Shell Pipeline Company, L.P., vs. Beaulieu Plantation, Inc. 18th JDC., Division A, West Baton Rouge Parish, State of Louisiana Case No. 34,883 Appraisal of Pipeline Rights-of-Way through Mississippi River Batture, Port Allen, Louisiana Deposition - October 3, 2007 LA Homes, Inc., vs. Parish of Jefferson, et al 24th JDC, Division H, Jefferson Parish, State of Louisiana Docket No. 590-500 Appraisal of Vacant Commercial Land, Marrero, Louisiana Court Testimony - March 28, 2006 Fashion Plantation, LLC vs. Union Pacific Railroad Company United States District Court, Eastern District of Louisiana Case No. 03 - 1812 (N) (3) Market Consultation on Value Loss from Denial of Railroad Crossing Deposition - March 7, 2005 Charles Elmer vs. West Jefferson Levee District 24th JDC, Division B, Jefferson Parish, State of Louisiana Docket No. 375 - 817 Appraisal of 100 Acres Tract of Vacant Land, Westwego, Louisiana Deposition - November 11, 2003 Pontchartrain Levee District vs. Charles A. Ostarly, et al 29th JDC, Division D, St. Charles Parish, State of Louisiana Appraisal of Wetlands for Levee Right-of-Way, St. Rose, Louisiana Court Testimony - December 17 and 18, 2002 United States of America vs. Marcia P. Shornstein, et al United States District Court, Eastern District of Louisiana, Mag. Division I, Section P Case No. 95-2337 Davis Pond Freshwater Diversion Project Deposition and Court Testimony - October, 1996 Louisiana Department of Transportation Development vs. Charbonnet, et al U.S. Highway 90 at I-510/State Project 450 - 43 – 47/I-410 N. O. Loop (Gulf Outlet Bridge - I-10) New Orleans, Louisiana Deposition - January 1995


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Chevron Pipeline Company vs Bertha Coleman Riley, et al Empire Terminal 25th Judicial District Court Plaquemine Parish, Louisiana Court Testimony - August, 1994 Parish of Jefferson vs. Marie Krantz Sunset Boulevard Right-of-Way 24th Judicial District Court Jefferson Parish, Louisiana Court Testimony - February, 1994 Finest Foods, Inc., vs. Greater Lakeside Corp. 24th Judicial District Court Jefferson Parish, Louisiana Court Testimony - December, 1992 Sheryl LeBlanc, et al, vs. Janell Faul, et al 24th Judicial District Court Jefferson Parish, Louisiana Court Testimony - December, 1992 Del Remy Corp & Fidelity Insurance Corp. vs. Lafayette Insurance Company Single Family Home Fire Claim 40th Judicial District Court Parish of St. John the Baptist Court Testimony - February, 1992 Eastern District U.S. Bankruptcy Court Before Judges Kingsmill and Brahaney Representing F.D.I.C., R.T.C. and or Related Banks and S & L's New Orleans, Louisiana 40+ Appearances in U. S. Bankruptcy Court Between - 1987 and 1992 Numerous State Court Appearances Centering on Road Right-of-Ways, Pipeline Servitudes, etc. From 1985 to Present PUBLICATIONS AUTHORED OVER THE PAST 10 YEARS None BASIS FOR COMPENSATION FOR APPRAISAL REPORTS AND TESTIMONY $300.00 Per Hour Qualifications – 2015


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WOODROW C. CROCHET III STATEMENT OF QUALIFICATIONS Louisiana General Real Estate Appraiser Trainee, Certificate No. T2835 Appraisal Institute MAI Candidate - Member No. 511261 Personal History: Born in New Orleans, Louisiana - 1969 Education: 1988 - Graduate, De La Salle High School - New Orleans, Louisiana 1993 - Graduate, Auburn University, BA, Finance - Auburn, Alabama Industry Education: 2008 - HUD MAP Appraisal Certification, HUD Headquarters, Washington D.C. 2007 - Completed Fannie Mae Property Inspection and Environmental Apartment

Certification Course, Dallas, TX 2001 - Earned Certified Commercial Investment Member (CCIM) Designation from the

CCIM Institute, Chicago, IL 1998 - Graduate, Mortgage Banking Association of America's School of Mortgage

Banking, Washington DC. Appraisal Institute Education: 2013 - Advanced Concepts and Case Studies, Dallas, TX 2013 - Advanced Market Analysis and Highest & Best Use, Louisville, KY 2013 - Advanced Income Capitalization, Dallas, TX. 2012 - General Appraiser Report Writing & Case Studies, Dallas, TX 2012 - General Market Analysis & Highest and Best Use, Dallas, TX 2012 - 7 Hour USPAP Update Course, Baton Rouge, LA 2012 - General Sales Comparison Approach, Online Course 2011 - Real Estate Finance Statistics & Valuation Modeling, Louisville, KY 2011 - General Appraiser Site Valuation & Cost Approach, Houston, TX. 2010 - 7 Hour USPAP Update Course, Baton Rouge, LA 2010 - General Appraiser Income Approach Part II, Houston, TX 2009 - Business Practices and Ethics, On-line Course 2009 - General Appraiser Income Approach Part I, Dallas, TX 2008 - Basic Appraisal Procedures, Dallas, TX 2008 - Basic Appraisal Principles, Dallas, TX Professional Experience: January 2014 to Present - Staff Appraiser – Argote, Derbes, Graham, Shuffield & Tatje, Inc. August 2008 to January 2014 - Staff Appraiser - Kevin D. Hilbert & Associates - Metairie, LA January 2003 to August 2008 – Asst. V.P., Underwriting -Centerline Capital Group - Dallas, TX August 1994 to December 2002 – Asst. V.P., Underwriting - Standard Mortgage Corporation New Orleans, Louisiana


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CLIENTS SERVED: Banks Regions Bank, Vicky Finley Capital One, Benton Gay Fidelity Homestead Savings First Bank & Trust Farmer’s Merchant Bank

Wells Fargo Bank First NBC J.P. Morgan Chase, Greg Smith Whitney National Bank, Paula Soniat, MAI Central National Bank of Enid, Stephen Hawthorn

Investment Banks/Conduits - Column Guaranteed, LLC Grandbridge Real Estate Capital, LLC Fairfield Financial Group, Patrick Coyne Greystone Funding Corporation Centerline Capital, Dallas, TX Eustis Mortgage Corporation

Chiron Financial Advisors, LLC Walker Dunlop, LLC AGM Financial Servicers Inc., Troy Brown Hudson Realty Capital Enterprise Community Partners, Brandon Dugham Oak Grove Capital, Dallas, TX

Developers / Owners / Professionals Favrot & Shane / First Lake Properties Volunteers of America Renaissance Neighborhood Development Corp Willwoods Community, Fr. Tom Chambers Keith Howard, Developer Louis Lauricella, Lauricella Land Myrtis Nims, Nims Center Rhaoul Guillaume, Jr., Developer

Brian Gibbs, Developer Andrew Schwartz, Developer Dorvin Developments, Howie Raymond Sinclair Kouns & Tony Harper, Alexandria, LA Belle Chasse Academy, Joe Beckeris, LNR Partners, LLC, Cynthia DeBenedetto, MAI Boystown, Scott Kardell, Director

Government Freddie Mac, John Fischer, MAI Attorneys - Lock Lord Bissell Liddell, LLP V.M. Wheeler, III, Gordon Arata, McCollam, Duplantis & Eagan, LLC APPRAISAL ASSIGNMENTS: Apartment Complexes Retail “Big Box” Retail Strip Shopping Centers Mixed Use with Apartments

Warehouses Restaurants Schools Land


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I specialize in the appraisal of income producing properties: Appraisal’s Completed APARTMENTS The Breakers, Metairie, LA The Woodlands, Mandeville, LA Willowood, Metairie, LA Premises I & II, Metairie, LA Falling Water, Kenner, LA Breckenridge, Metairie, LA La Provance, New Orleans, LA (Pre Katrina) Westchase, Harvey, LA (2) Beechgrove I & II, Westwego, LA (2) Chateau Bayou, Ocean Springs, MS Chateau Cleary, Metairie, LA (2) Magnolia Oaks, Gautier, MS Cypress Run, New Orleans, LA Northbridge, Metairie, LA Chateau Carre, Gentilly, New Orleans, LA Riverview, 1039 3rd St., Kenner, LA 4117 Trenton St., 6-plex, Metairie, LA Jackson’s Landing, New Orleans, LA (2) Venus Gardens, New Orleans, LA Groves at Mile Branch Creek, Covington, LA Millstream, Metairie, LA Harper’s Ferry, Kenner, LA Pirogue Cove, East New Orleans, LA Montbatten Drive, 15-Duplexes, Harvey, LA Kabel Drive 4-Plexes, New Orleans, LA La Belle Maison, Kenner, LA (2) Rivertown Apartments, Kenner, LA Maison Bacage, Baton Rouge, LA (2) Audubon Pointe, New Orleans, LA Sugarmill East & West, Kenner, LA Oak Tree, Treme, New Orleans, LA Summerfield Place, Gulfport, LA (2) Gallery, Metairie, LA Country Club Woods, Mobile, AL Terraces of Metairie III, Metairie, LA Coventry Place, Lafayette, LA Acadian Gardens, Lafayette, LA South College Gardens, Lafayette, LA Willow Gardens, Lafayette, LA Springbrook Apts., Baton Rouge, LA Belmont of Hattiesburg, Hattiesburg, LA Ansley Walk, Lafayette, LA Bristol Place, Baton Rouge, LA Indigo Park, Baton Rouge, LA 838 Lowerline St., New Orleans, LA Simone Gardens, Metairie, LA Fernwood Apts., Metairie, LA 1216-1224 Marengo St., New Orleans, LA 2255 St. Charles Ave., New Orleans, LA 324 Codifer Blvd., Metairie, LA Brynmar Apts., Metairie, LA 3000 Independence Apts., Metairie, LA American Can Apts., New Orleans, LA Woodward Wight Apts., New Orleans, LALakes of Chateau South, Kenner, LA The Muses Phase I, New Orleans, LA (2) Azalea Park Apts. 700 Pecan, Hammond, LA Fountain Lakes, Shreveport, LA Beaumonde Apartments, Hammond, LA 700 Pecan Street, 88 Units, Hammond, LA 4029-33 Sanford St. Metairie, LA 4601 Mac Arthur Blvd., Algiers, LA (2) 405 Westside Blvd. 32 Units, Houma, LA Greentree Apts., Hattiesburg, LA The Pines I & II Apts., Gretna, LA (2) The Lodge Apts., Pascagoula, MS Regency Club Apts. Baton Rouge, LA (2) Baywood Apts., Gretna, LA Cedarwood Apts., Gretna, LA Lafitte Housing Development, Sec. 8, N.O. LA Goodman Plaza, Sec. 8, Shreveport, LA Colonial Village Apts., Houma, LA Glouchester Manor, Lafayette, LA Stonebridge Manor, Gretna, LA The Carlyle Apts., Gretna, LA Williamsburg Apts., Metairie, LA Bluebonnet Ridge, Sec. 8, Baton Rouge, LA Siegen Village, Sec. 8, Baton Rouge, LA Brookstone Park, Phase I, Covington, LA Brookstone Park, Phase II, Covington, LA Magnolia Park, Chalmette, LA 1836 Montbatten - 15 Duplexes, Harvey, LA Colonial Village Apts., Houma, LA Lynn Ave. Apts., Thibodaux, LA Diamond Lakes Apts., Lafayette, LA 1824 Oregon St. Apts., Baton Rouge, LA


ADDENDA


APARTMENTS (Continued) 600 Canal St. Apts., New Orleans, LA 1101 Decatur St. Apts., New Orleans, LA Turtle Creek Apts., Metairie, LA LA Freeman Homes, New Orleans, LA Tonti Property Portfolio – 2013 Chateau Napoleon Apts., Metairie, LA Coppermill Apts., Metairie, LA Daytona Apts., Metairie, LA Edenborn Courts & Gardens, Metairie, LA Golden Key Apts., Metairie, LA Greentree Apts., Metairie, LA Hampton Court Apts., Metairie, LA Lakeside V Apts., Metairie, LA Lake Villa Apts., Metairie, LA Lakewood Manor Apts., Metairie, LA L’Esplanade Apts., Metairie, LA Mark Twain I Apts., Metairie, LA Mark Twain II Apts., Metairie, LA Patio Villa Apts., Metairie, LA Peppertree Apts., Metairie, LA Preston Place Apts., Metairie, LA Sagewood Apts., Metairie, LA Somerset Apts., Metairie, LA Summit Apts., Metairie, LA Wilshire Heights Apts., Metairie, LA APARTMENTS - HUD MAP / FEASIBILITY & RENT COMPARABILITY STUDIES Toulon, Gautier, MS - Feasibility and 221d (4) Holy Cross Villas, Bossier City, LA - 223(f) Browns Village, Slidell, LA - 221d (4) Rose of Jackson, Jackson, MS - 231 Alexandria, LA Apt. Feasibility Study 221d(4) Canterbury II Feasibility, Slidell, LA 221d(4) Algiers Crossing Feasibility, N.O., LA 221d(4) Riverview Apts, Kenner, LA 223(f) St. Ann Apts., New Orleans, LA 223(f) Plaza Park Apts., New Orleans, LA 223(f) 210 Baronne St., Apt. Feasibility, N.O., LA Lafitte Housing Development, N.O., LA, RCS Bluebonnet Ridge Apts, Baton Rouge 223(f)

Bayou Rouge, Shreveport, LA - 223 d(4) Lexington Apartments, Biloxi, MS - 223(f) Audubon Pointe, Algiers, LA - 223(f ) Elderly Feasibility Study, Kenner, LA - 231 313 Carondelet Feasibility, 221d(4) Malcolm Kenner Apts, Kenner, LA - RCS Slidell Feasibility Study, Brian Gibbs Pine Hill Estates, Shreveport, LA RCS River House, Mixed Use, B.Rouge, LA 221d(4) Guillaume Apartment Feasibility, Baton Rouge, LA Yorkshire Edenborn, Metairie, LA 223(f) Cypress Place Apts., Sec. 8, Harvey, LA 223(f)


ADDENDA


SHOPPING CENTERS Sav-A-Center, Harvey, LA (Vacant) Elmwood Village Shopping Center RETAIL / OFFICE BUILDINGS / WAREHOUSES Engine Monitor, Inc., James Business Park A-1 Appliance Leasehold, Metairie, LA 5401 Tolar Street, Camellia Beans Home Depot Leased Fee, New Orleans, LA 700 Frenchman St., Boystown, N.O., LA Medical Office, Louisiana Ave, N. O., LA Strip Center, 2701 Veterans, Metairie, LA 3138 Magazine Street N.O., LA - Mixed Use Nims Center, 824 Distributor’s Row 540 N. Cortez St., Warehouse, New Orleans, 1104 Stumpf Blvd., Mixed Use, Gretna, LA 172 Harbor Circle, Warehouse 1908 Veterans Blvd., X-A-Dent 3750 Veterans Blvd., Mixed Use, Ethan Allen 4845 Veterans Blvd., Whitney Land Lease 4841 Veterans Blvd., Rainbow Imports 6711 Airline Drive, Airline Skate Center RESTAURANTS Denny’s, 14099 Hwy. 90, Boutte, LA Don’s Seafood, 4801 Veterans Blvd. Brennan’s, New Orleans, LA Crazy Johnnies Steakhouse ASSISTED LIVING CENTERS/NURSING HOMES Malta Park, New Orleans, LA GOLF COURSES AND COUNTRY CLUBS Colonial Golf & Country Club, Harahan SCHOOLS Belle Chasse Academy, Belle Chasse, LA


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