Loop Calhoun Condominiums~Valuation of Remaining Units~

Opportunity Advisors, LLC

The Loop Calhoun Condominiums

Model Format: Discounted cash flow model Buy units today Sell units over time Factor in selling costs, carry costs Solve for value based on required return

VALUATION MODEL

Assumptions: 58 units (79,866 total square feet) purchased 1,377 average square feet per unit Sell all units over 48 month period Gross sales price: $220 psf (~$302,940 per unit) Selling costs: 7.3% of gross sales price Capex: ~ $5,500 per unit Taxes: ~ $225 per unit per month Dues: ~ $500 per unit per month Property management fees: ~ $13,300 per month Required investor IRR: 23%

VALUATION MODEL

Original sales price of $282 per square foot

Sales Price Considerations: General market decline Tarnished project image Suburban Condo Large unit size Rentals Re-sales Parking Last 10 units

Updated sales price of $220 per square foot Decline of 22%

VALUATION MODEL

Jan-

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10100

120

140

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MSPUS

MSP 29%

US 29%

Source: Standard & Poor’s

S&P / CASE-SHILLER HOME PRICE INDEX

VALUATION MODEL

LOOP CALHOUN RECENT SALESUnit # Date Sold Sale Type SQ FT Sales Price $ / SQ FT # of Stalls

# 319 7/15/2010 Bank 957 $ 225,000 235 1

# 310 6/21/2010 Bank 957 $ 217,500 227 1

# 323 6/21/2010 Re-Sale 1,022 $ 200,000 196 1

# 517 5/27/2010 Bank 1,777 $ 436,000 245 2

# 204 4/6/2010 Bank 962 $ 190,000 197 1

# 206 3/26/2010 Bank 1,271 $ 270,000 212 1

# 317 3/11/2010 Re-Sale 957 $ 199,000 208 1

# 328 1/18/2010 Bank 1,359 $ 380,000 280 2

# 301 12/3/2009 Bank 1,697 $ 460,000 271 2# 211 11/25/2009 Re-Sale 1,288 $ 300,600 233 1

# 201 11/12/2009 Bank 1,730 $ 425,000 245 2

SQ FT Sales Price $ / SQ FT

Total 13,977 $ 3,303,100

Average 1,270.64 $ 300,282 236.32

Last 6 months (average) 1,129 $ 248,214 219.85

Conclusion: Assumptions dictate a bulk purchase value of ~$9.4 MM

• ~$118 per square foot

VALUATION MODEL

SKYSCAPE vs. LOOP CALHOUN

LocationDemographic

Image

SKYSCAPE EXPERIENCE

SkyscapeMinneapolis, MN

Purchased 72 units in January of 2010

Bought in bulk at 45% discount to current prices

Sellers were BofA and Wells Fargo

Loop Calhoun Condominiums~Valuation of Remaining Units~

Opportunity Advisors, LLC