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HomeMy WebLinkAboutResolutions - 2023.07.27 - 40327 July 27, 2023 RESOLUTION #2023-3203 _ 23-128 Sponsored By: David Woodward Executive's Office - Approval and Acceptance of Assignment of Purchase Agreement to Purchase and Lease Certain Property in the City of Pontiac Chair and Members of the Board: WHEREAS on May 17, 2023, the Economic Development & Infrastructure Committee approved an Assignment of Purchase Agreement for the purchase and lease of the following (collectively referred to as the “Properties”): A. Office building located at 51111 Woodward Avenue, Pontiac, Michigan 48342, known as Ottawa Tower 1 B. Vacant office building located at 31 East Judson Street, Pontiac, Michigan 48342, known as Ottawa Tower II C. Vacant land parcels as more thoroughly described in the Purchase Agreement D. Assignment of Ottawa Tower I office leases E. Assignment of all interest in a Lease that covers the Phoenix Center Parking Structure; WHEREAS the Purchase Agreement outlined an Inspection Period for purchaser, Farbman Acquisition LLC (Farbman Group), to conduct their due diligence on the purchase of the Properties; WHEREAS due diligence was conducted by the Farbman Group and various professional organizations on the Properties. WHEREAS the due diligence covered environmental reports, property condition reports, surveys, title, parking deck report, lease abstract reports on Ottawa Tower I and lease abstract on the Phoenix Center Parking Structure, and income and expense reports on Ottawa Tower I and on the parking lease. WHEREAS the due diligence did not uncover any material finding during the inspection period. The inspection period concludes on July 24, 2023. WHEREAS during the inspection period two appraisals were conducted. Integra Realty Resources performed one appraisal of the Properties and found a prospective market value as stabilized of $19.9 million dollars. Newmark Valuation & Advisory, LLC performed the other appraisal of the Properties and found a market value as is of $19.6 million dollars. WHEREAS the County Executive’s Office desires to purchase for $19,200,000.00 the Properties, has reviewed and approved the attached Assignment of Purchase Agreement, and recommends that the Oakland County Board of Commissioners approve and execute the attached Assignment of Purchase Agreement. WHEREAS Oakland County has been awarded a $50,000,000.00 enhancement grant by the State of Michigan for public infrastructure purposes, has allocated $10,000,000.00 of federal Local Fiscal Recovery Funds for the Pontiac office relocation project, and may consider issuing bonds in the future for a portion of the overall project. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners approves the attached Assignment of Purchase Agreement and authorizes and directs its Chairperson to execute the attached Assignment of Purchase Agreement upon receiving a fully executed Memorandum of Agreement for the Pontiac Redevelopment Project between The County of Oakland and the City of Pontiac prior to the closing date. BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners authorizes an appropriation in the amount of $19,200,000.00 for the purchase of the Properties and an additional amount not to exceed $350,000 in closing costs related to the purchase of the Properties, both from the General Fund Strategic Investment Plan Assigned Fund Balance (GL Account #383554). BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners authorizes an appropriation in the amount of $250,000.00 from the General Fund Strategic Investment Plan Assigned Fund Balance (GL Account #383554) for the management of the properties listed above for a period of 12 months, to begin on the closing date identified in the Purchase Agreement. BE IT FURTHER RESOLVED that County Executive Office and Board of Commissioners intend to reimburse the General Fund at a later date for these appropriation with revenues received from a combination of the State of Michigan’s $50,000,000 enhancement grant to Oakland County and $10,000,000 in Local Fiscal Recovery Funds received under the federal American Rescue Plan Act. BE IT FURTHER RESOLVED that Oakland County intends to issue bonds to pay for the costs associated with acquiring the Properties and the purchase price for the Properties and makes the following declarations for the purpose of complying with the reimbursement rules of Treas. Reg. § 1.150-2 pursuant to the Internal Revenue Code of 1986, as amended: a. Oakland County reasonably expects to reimburse itself with proceeds of the bonds for certain costs of the Properties which were paid or will be paid from funds of Oakland County subsequent to sixty (60) days prior to today. b. The maximum principal amount of debt expected to be issued for the acquisition of the Properties, including issuance costs, is $20,000,000. c. A reimbursement allocation of the capital expenditures described above with the proceeds of the Bonds will occur not later than 18 months after the later of (i) the date on which the expenditure is paid, or (ii) the date the Properties are placed in service or abandoned, but in no event more than three (3) years after the original expenditure is paid. A reimbursement allocation is an allocation in writing that evidences Oakland County’s use of the proceeds of the bonds to reimburse Oakland County for a capital expenditure made pursuant to this resolution. BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners authorizes and directs Deputy County Executive Sean Carlson to execute all closing documents and any other documents required during the closing process for the transaction contained in the Assignment of Purchase Agreement and all other documents which may be required to effectuate the transaction contained in the Assignment of Purchase Agreement. BE IT FURTHER RESOLVED that the FY 2023 budget is amended as reflected in the Schedule A – Budget Amendment document. Chair, the following Commissioners are sponsoring the foregoing Resolution: David Woodward. Date: July 27, 2023 David Woodward, Commissioner Date: July 27, 2023 David Coulter, Oakland County Executive Date: July 27, 2023 Lisa Brown, County Clerk / Register of Deeds COMMITTEE TRACKING 2023-07-26 Economic Development & Infrastructure - Discussion 2023-07-27 Full Board - Adopt Motioned by Commissioner Angela Powell seconded by Commissioner Kristen Nelson to adopt the attached Contract: Approval and Acceptance of Assignment of Purchase Agreement to Purchase and Lease Certain Property in the City of Pontiac. Yes: David Woodward, Kristen Nelson, Gwen Markham, Angela Powell, Marcia Gershenson, Janet Jackson, William Miller III, Yolanda Smith Charles, Charles Cavell, Brendan Johnson, Ajay Raman (11) No: Michael Spisz, Karen Joliat, Christine Long, Robert Hoffman, Philip Weipert (5) Abstain: None (0) Absent: Penny Luebs, Michael Gingell, Gary McGillivray (3) Passed ATTACHMENTS 1. Schedule A - Budget Amendment - Property City of Pontiac 2. Assignment of Purchase Agreement - Ottawa Tower Properties - Farbman - Oakland County (Final Version) 3. FinalReport Ottawa Tower Property.7.26.23 4. 23-0188994-1 - 31 E Judson St 51111 Woodward Ave Pontiac MI.Final.7.26.23 5. County-Pontiac MOA re Phoenix Center Ottawa Towers (DRAFT. 7.27.23).v12 as Amended, Exhibit A and B STATE OF MICHIGAN) COUNTY OF OAKLAND) I, Lisa Brown, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on July 27, 2023, with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affixed the seal of the Circuit Court at Pontiac, Michigan on Thursday, July 27, 2023. Lisa Brown, Oakland County Clerk / Register of Deeds Oakland County, Michigan Schedule "A" DETAIL - General Fund/General Purpose COUNTY EXECUTIVE OFFICE – APPROVAL AND ACCEPTANCE OF ASSIGNMENT OF PURCHASE AGREEMENT TO PURCHASE AND LEASE CERTAIN PROPERTY IN THE CITY OF PONTIAC R/E Fund Name Division Name Fund # (FND)Cost Center (CCN) # Account # (RC/SC) Program # (PRG)Grant ID (GRN) # Project ID # (PROJ) Region (REG) Budget Fund Affiliate (BFA) Ledger Account Summary Account Title FY 2023 Amendment FY 2024 Amendment FY 2025 Amendment R General Fund FND10100 CCN9010101 RC665882 PRG196030 665882 Planned Use of Balance 19,800,000.00 $-$- Total Revenue 19,800,000.00 -- E General Fund FND10100 CCN9010101 SC788001 PRG196030 BFA42110 788001 Transfer Out 19,800,000.00 $-$- Total Expenditure 19,800,000.00 -- R Pontiac Development Fund FND42110 CCN1040801 RC695500 PRG148020 PRJ-17XXX BFA10100 695500 Transfer In 19,800,000.00 -- Total Revenues 19,800,000.00 R Pontiac Development Fund FND42110 CCN1040801 SC760126 PRG148020 PRJ-17XXX 761000 Captial Outlay Miscellaneous 19,800,000.00 -- Total Expenses $19,800,000.00 $-$- Integra Realty Resources Detroit Appraisal of Real Property Ottawa Towers Property 51111 Woodward Ave. & 31 E. Judson St. Pontiac, Oakland County, Michigan 48342 Prepared For: Farbman Group Date of the Report: July 25, 2023 Report Format: Appraisal Report IRR - Detroit File Number: 142-2023-0626 Subject Photographs Ottawa Towers Property 51111 Woodward Ave. & 31 E. Judson St. Pontiac, Michigan Aerial Photograph Integra Realty Resources 400 West Maple Road T 248.540.0040 Detroit Suite 100 F 248.540.8239 Birmingham, MI 48009-3351 www.irr.com July 25, 2023 Andy Gutman President Farbman Group 28400 Northwestern Highway, 4th Floor Southfield, MI 48034 SUBJECT: Market Value Appraisal Ottawa Towers Property 51111 Woodward Ave. & 31 E. Judson St. Pontiac, Oakland County, Michigan 48342 IRR - Detroit File No. 142-2023-0626 Dear Mr. Gutman: Integra Realty Resources – Detroit is pleased to submit the accompanying appraisal of the referenced property. The purpose of the appraisal is to develop an opinion of the market value, pertaining to the leased fee interest in the property. The client for the assignment is Farbman Group. The intended users of this report are Farbman Group and Oakland County. The intended use of the report is for internal purposes. No other party or parties may use or rely on the information, opinions, and conclusions contained in this report. The subject relates to two, office towers containing 391,217 square feet of rentable area, a parking garage containing roughly 2,700 spaces, and various land parcels that total 3.47 acres combined. The office towers are identified as 51111 Woodward Avenue (Tower 1) and 31 E. Judson Street (Tower 2), which were constructed in 1981. These various components are described in greater detail within the body of this report. The appraisal conforms to the Uniform Standards of Professional Appraisal Practice (USPAP), the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute, and applicable state appraisal regulations. Andy Gutman Farbman Group July 25, 2023 Page 2 Standards Rule 2-2 (Content of a Real Property Appraisal Report) contained in the Uniform Standards of Professional Appraisal Practice (USPAP) requires each written real property appraisal report to be prepared as either an Appraisal Report or a Restricted Appraisal Report. This report is prepared as an Appraisal Report as defined by USPAP under Standards Rule 2-2(a), and incorporates practical explanation of the data, reasoning, and analysis that were used to develop the opinion of value. Based on the valuation analysis in the accompanying report, and subject to the definitions, assumptions, and limiting conditions expressed in the report, the concluded opinions of value are as follows: Value Conclusion Value Type & Appraisal Premise Interest Appraised Date of Value Value Conclusion Market Value Leased Fee June 1, 2023 $19,900,000 Extraordinary Assumptions and Hypothetical Conditions 1.The property currently has substantial vacancy. This valuation assumes Oakland County absorbs all the vacant space within the property at a market rent rate, taking full occupancy on the date of value. 1.The valuation assumes that Oakland County is in occupancy as of the effective date of value. Further, this valuation assumes that the interior renovations necessary for occupancy as it relates to carpet, paint, etc., has been completed as of the effective date of value. The use of any extraordinary assumption or hypothetical condition may have affected the assignment results. The value conclusions are based on the following hypothetical conditions. A hypothetical condition is a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. The value conclusions are subject to the following extraordinary assumptions. An extraordinary assumption is an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions. Andy Gutman Farbman Group July 25, 2023 Page 3 If you have any questions or comments, please contact the undersigned. Thank you for the opportunity to be of service. Respectfully submitted, Integra Realty Resources - Detroit Constantino G. Naoum Michigan Certified General Real Estate Appraiser #1205068135 Telephone: 248.979.9690 Email: dnaoum@irr.com Anthony Sanna, MAI, CRE Michigan Certified General Real Estate Appraiser #1205001324 Telephone: 248.979.9663 Email: asanna@irr.com Table of Contents Ottawa Towers Property Quality Assurance 1 Executive Summary 2 Identification of the Appraisal Problem 4 Subject Description 4 Sale History 6 Pending Transactions 6 Appraisal Purpose 6 Value Type Definitions 7 Property Rights Definitions 7 Client and Intended User(s) 8 Intended Use 8 Applicable Requirements 8 Report Format 8 Prior Services 8 Appraiser Competency 8 Scope of Work 9 Economic Analysis 11 Surrounding Area Analysis 11 Office Market Analysis 17 Property Analysis 21 Land Description and Analysis 21 Improvements Description and Analysis 25 Real Estate Taxes 34 Highest and Best Use 36 Valuation 38 Valuation Methodology 38 Land Valuation – Various Parcels 39 Analysis and Adjustment of Sales 43 Property Adjustments 44 Land Value Conclusion 46 Sales Comparison Approach 49 Analysis and Adjustment of Sales 52 Property Adjustments 53 Value Indication 55 Income Capitalization Approach 57 Leased Status of Property 57 Market Rent Analysis 58 Stabilized Income and Expenses 61 Capitalization Rate Selection 65 Direct Capitalization Analysis 68 Reconciliation and Conclusion of Value 69 Exposure Time 70 Marketing Period 70 Certification 71 Assumptions and Limiting Conditions 73 Addenda A. Appraiser Qualifications B. IRR Quality Assurance Survey C. Financials and Property Information D. Comparable Data Land Sales Improved Sales Quality Assurance 1 Ottawa Towers Property Quality Assurance IRR Quality Assurance Program At IRR, delivering a quality report is a top priority. Integra has an internal Quality Assurance Program in which managers review material and pass an exam in order to attain IRR Certified Reviewer status. By policy, every Integra valuation assignment is assessed by an IRR Certified Reviewer who holds the MAI designation, or is, at a minimum, a named Director with at least ten years of valuation experience. This quality assurance assessment consists of reading the report and providing feedback on its quality and consistency. All feedback from the IRR Certified Reviewer is then addressed internally prior to delivery. The intent of this internal assessment process is to maintain report quality. Designated IRR Certified Reviewer An internal quality assurance assessment was conducted by an IRR Certified Reviewer prior to delivery of this appraisal report. This assessment should not be construed as an appraisal review as defined by USPAP. Executive Summary 2 Ottawa Towers Property Executive Summary Property Name Address Property Type Owner of Record Tax ID Land Area 14.65 acres; 637,936 SF Gross Building Area 425,970 SF Rentable Area 391,217 SF Percent Leased 82% Year Built 1981 Zoning Designation Highest and Best Use - As if Vacant Highest and Best Use - As Improved - Office Towers Exposure Time; Marketing Period 12 months; 12 months Effective Date of the Appraisal June 1, 2023 Date of the Report July 25, 2023 Property Interest Appraised Market Value Indications Cost Approach Not Used Sales Comparison Approach $20,300,000 Income Capitalization Approach $19,800,000 Market Value Conclusion $19,900,000 The values reported above are subject to the definitions, assumptions, and limiting conditions set forth in the accompanying report of which this summary is a part. No party other than Farbman Group and Oakland County may use or rely on the information, opinions, and conclusions contained in the report. It is assumed that the users of the report have read the entire report, including all of the definitions, assumptions, and limiting conditions contained therein. C-2, Downtown Mixed Use Inventory for future mixed-use Leased Fee Continued office use Various, see summary in body of report 14-32-226-020, 14-32-227-002, 14-29-484-006, 14-32-226- 021, 14-32-227-003, 14-29-484-003, 14-29-484-010 and 14-32-231-009 Ottawa Towers Property 51111 Woodward Ave. & 31 E. Judson St. Pontiac, Oakland County, Michigan 48342 Office - General Purpose Extraordinary Assumptions and Hypothetical Conditions 1.The property currently has substantial vacancy. This valuation assumes Oakland County absorbs all the vacant space within the property at a market rent rate, taking full occupancy on the date of value. 1.The valuation assumes that Oakland County is in occupancy as of the effective date of value. Further, this valuation assumes that the interior renovations necessary for occupancy as it relates to carpet, paint, etc., has been completed as of the effective date of value. The use of any extraordinary assumption or hypothetical condition may have affected the assignment results. The value conclusions are based on the following hypothetical conditions. A hypothetical condition is a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. The value conclusions are subject to the following extraordinary assumptions. An extraordinary assumption is an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions. Executive Summary 3 Ottawa Towers Property Strengths, Weaknesses, Opportunities, Threats (SWOT Analysis) The analyses presented in this report consider the internal strengths and weaknesses of the subject property, as well as opportunities and external threats. The overall valuation influences are summarized in the following table. Valuation Influences Strengths •Located in downtown Pontiac with excellent visibility. •The subject has direct access to the Phoenix Center parking garage which contains roughly 2,700 stalls/spaces. The garage is under a ground lease from the city of Pontiac to the property owner which requires the owner of the Ottawa Towers to maintain and operate the garage. The annual rental payment is nominal. •The subject reportedly is equipped with fiber optic lines. •The subject contains State of Michigan related entities that currently occupy in excess of 100,000 SF of rentable area, providing a stable source of revenue. Weaknesses •The leases with the State of Michigan may have standard cancelation clauses. •The leases with the State of Michigan do not include base-year stops on operating expenses, including real estate taxes, thus exposing the landlord to any future increases in expenses. •The Phoenix Center garage requires a multimillion dollar upgrade to meet current market standards. Opportunities •Oakland County as the primary occupant would have the added benefit of retaining and attracting tenants to the property as it would anchor this asset for the long-term. •Introduce base-year stops on future new and renewal leases. Threats •The impact of remote working on future office demand. •Rising interest rate risk. •The broader market is experiencing macro-economic issues that are unfolding and creating uncertainty including interest rate hikes, geopolitical conflicts, inflation, volatile stock market, etc. Further, recent bank failures have created concerns about the health of the broader financial markets. This is resulting in a credit crisis that will likely make it more difficult to finance commercial real estate in the near term and may impact property values. These factors could impact commercial real estate pricing and marketability in 2023. Identification of the Appraisal Problem 4 Ottawa Towers Property Identification of the Appraisal Problem Subject Description The subject relates to two, office towers containing 391,217 square feet of rentable area, a parking garage containing roughly 2,700 spaces, and various land parcels that total 3.47 acres combined. The office towers are identified as 51111 Woodward Avenue (Tower 1) and 31 E. Judson Street (Tower 2), which were constructed in 1981. These various components are described in greater detail within the body of this report. Property Identification Property Name Ottawa Towers Property Address 51111 Woodward Ave. & 31 E. Judson St. Pontiac, Michigan 48342 Tax ID 14-32-226-020, 14-32-227-002, 14-29-484-006, 14-32-226-021, 14-32-227-003, 14- 29-484-003, 14-29-484-010 and 14-32-231-009 Owner of Record Various, see summary in body of report Identification of the Appraisal Problem 5 Ottawa Towers Property The previous aerial outlines the various components of the subject property, with a brief description of each as follows: Property 1: This relates to the office tower identified as 51111 Woodward Avenue. This office tower contains a rentable area of 191,217 SF and is 63% leased as of the date of inspection. The owner of record is Ottawa Towers 2021 LLC. Property 2: This relates to the office tower identified as 31 E. Judson. The office tower contains a rentable area of 200,000 SF, with our analysis assuming Oakland County has taken full possession of this tower. The owner of record is 31 E Judson LLC. Property 3: This relates to the Phoenix Center parking garage with both towers having direct access to the garage and reportedly has a capacity of 2,700 spaces. The owner of record is Ottawa Towers 2021 LLC. The garage will require a multimillion dollar investment to modernize the facility to current market standards. The garage is under a ground lease from the city of Pontiac to the property owner which requires the owner of the Ottawa Towers to maintain and operate the garage. The annual rental payment is reportedly $30 every 20 years and has 97-years remaining on the term. A copy of the ground lease was not made available. The parking garage is included in the pending sale to provide adequate parking, especially with Oakland County becoming the main occupant. Otherwise, the property owner would have a difficult time securing needed parking spaces in the immediate area. Even though the parking garage property is identified as its own tax identification number, the structure is sandwiched in-between both office towers with direct access to both towers. Essentially, the parking garage is viewed to be an integral component of the overall office tower complex, with any value attributed to the parking garage intertwined with the office tower valuation. Property 4: This relates to the land parcel located on the north side of E. Judson, east of southbound Woodward Avenue. This land parcel contains 21,867 SF and is zoned C-2, Downtown Mixed Use. The owner of record is Ottawa Towers 2021 LLC. Property 5: This relates to the land parcel located on the northwest corner of E. Judson and northbound Woodward Avenue. This land parcel contains 17,816 SF and is zoned C-2, Downtown Mixed Use. The owner of record is Kingsville Properties LLC & Kingsville Properties II LLC. Properties 6 & 7: These relate to the land parcels located on the south side of Water Street, west of southbound Woodward Avenue. Combined, these land parcels contain 87,992 SF and zoned C-2, Downtown Mixed Use. It should be noted that these properties are currently improved with pavement as the parcels were part of a parking lot. Furthermore, a couple of concrete staircases leading to the Phoenix Center garage are also situated on these properties. These improvements were viewed to be in below average condition and require to be demolished to allow redevelopment of these land parcels. We have estimated a demolition expense of $100,000. The owner of records are Kingsville Properties LLC & Kingsville Properties II LLC and Excellor LLC & Excellor 2 LLC. Identification of the Appraisal Problem 6 Ottawa Towers Property Property 8: This relates to the land parcel located on the southwest corner of Whittemore Street and northbound Woodward Avenue. This land parcel contains 23,610 SF and is zoned C-2, Downtown Mixed Use. The owner of record is Kingsville Properties LLC & Kingsville Properties II LLC. Sale History The current ownership group purchased the subject property, as described herein, from the City of Pontiac for $7,400,000 on cash terms on March 12, 2021. The City of Pontiac purchased all of these assets from the previous owner around the same timeframe for $19,400,000. The prior private owner had a judgment against the City of Pontiac for roughly $30,000,000. The following narrative summarizes the backstory to the judgment of $30,000,000 the City of Pontiac was facing. At one point in the past, the city was proposing the demolition of the Phoenix Center parking garage, which provides the only nearby parking spots to the Ottawa Towers. This would have had a determinantal effect on the property as other options to secure parking spots for the tenants would have been needed to be explored, thus the impetus to seeking legal avenues to stop the demolition of the center. Marketing the vacant office space was difficult for several year while the case was in legal limbo, which suppressed the occupancy of the towers. Eventually the previous owner received the $30,000,000 judgment against the city. The prior owners agreed to waive the judgment if the City of Pontiac purchased the properties for $19,400,000. Once executed, the city sold the properties to the current ownership group for $7,400,000 on cash terms. Even though the city realized a loss of $12,000,000, this was substantially less than the $30,000,000 judgment against them, which was an attractive alternative. Furthermore, a private investor would be able to stabilize the property and help revitalize this specific area of downtown Pontiac. Pending Transactions The subject is reportedly under contract to be purchased, with no details provided. Appraisal Purpose The purpose of the appraisal is to develop the following opinion(s) of value: • The market value of the leased fee interest in the subject property as of the effective date of the appraisal, June 1, 2023 The date of the report is July 25, 2023. The appraisal is valid only as of the stated effective date or dates. Identification of the Appraisal Problem 7 Ottawa Towers Property Value Type Definitions The definitions of the value types applicable to this assignment are summarized below. 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: 1. Buyer and seller are typically motivated; 2. Both parties are well informed or well advised, and acting in what they consider their own best interests; 3. A reasonable time is allowed for exposure in the open market; 4. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5. 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. 1 Property Rights Definitions The property rights appraised which are applicable to this assignment are defined as follows. Leased Fee Interest The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary rights when the lease expires.2 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.3 Leasehold Estate The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease.4 The office towers, which assumes Oakland County is already occupying their space as of the date of value, would be viewed as a leased fee interest valuation. The various land parcels would be viewed as a fee simple valuation. The parking garage valuation is intertwined within the office towers valuation, 1 Code of Federal Regulations, Title 12, Chapter I, Part 34.42[h]; also Interagency Appraisal and Evaluation Guidelines, Federal Register, 75 FR 77449, December 10, 2010, page 77472 2 Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th ed. (Chicago: Appraisal Institute, 2022) 3 Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th ed. (Chicago: Appraisal Institute, 2022) 4 Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th ed. (Chicago: Appraisal Institute, 2022) Identification of the Appraisal Problem 8 Ottawa Towers Property but should be noted that this portion of the subject is under a ground lease with reportedly 97 years remaining on the term, and would typically be viewed as a leasehold estate valuation. In summary, due to the leases already in-place and the client’s request for a singular value of the entire asset, we identify our value conclusion to reflect a leased fee interest valuation. Client and Intended User(s) The client is Farbman Group. The intended users are Farbman Group and Oakland County. No other party or parties may use or rely on the information, opinions, and conclusions contained in this report. Intended Use The intended use of the appraisal is for internal purposes. The appraisal is not intended for any other use. Applicable Requirements This appraisal report conforms to the following requirements and regulations: • Uniform Standards of Professional Appraisal Practice (USPAP); • Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute; • Applicable state appraisal regulations. Report Format Standards Rule 2-2 (Content of a Real Property Appraisal Report) contained in the Uniform Standards of Professional Appraisal Practice (USPAP) requires each written real property appraisal report to be prepared as either an Appraisal Report or a Restricted Appraisal Report. This report is prepared as an Appraisal Report as defined by USPAP under Standards Rule 2-2(a), and incorporates practical explanation of the data, reasoning, and analysis used to develop the opinion of value. Prior Services USPAP requires appraisers to disclose to the client any other services they have provided in connection with the subject property in the prior three years, including valuation, consulting, property management, brokerage, or any other services. We 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 the agreement to perform this assignment. Appraiser Competency No steps were necessary to meet the competency provisions established under USPAP. The assignment participants have appraised several properties similar to the subject in physical, locational, and economic characteristics, and are familiar with market conditions and trends; therefore, appraiser competency provisions are satisfied for this assignment. Appraiser qualifications and state credentials are included in the addenda of this report. Scope of Work 9 Ottawa Towers Property Scope of Work Introduction The appraisal development and reporting processes require gathering and analyzing information about the assignment elements necessary to properly identify the appraisal problem. The scope of work decision includes the research and analyses necessary to develop credible assignment results, given the intended use of the appraisal. Sufficient information includes disclosure of research and analyses performed and might also include disclosure of research and analyses not performed. To determine the appropriate scope of work for the assignment, the intended use of the appraisal, the needs of the user, the complexity of the property, and other pertinent factors were considered. The concluded scope of work is described below. Research and Analysis The type and extent of the research and analysis conducted are detailed in individual sections of the report. The steps taken to verify comparable data are disclosed in the addenda of this report. Although effort has been made to confirm the arms-length nature of each sale with a party to the transaction, it is sometimes necessary to rely on secondary verification from sources deemed reliable. Subject Property Data Sources The legal and physical features of the subject property, including size of the site and improvements, flood plain data, property zoning, existing easements and encumbrances, access and exposure, and condition of the improvements (as applicable) were confirmed and analyzed. Contacts In addition to public records and other sources cited in this appraisal, information pertaining to the subject was obtained from the following party: Property Contacts Contact Name Title/Role Company Andy Gutman President Farbman Group Scope of Work 10 Ottawa Towers Property Inspection Details regarding the property inspection conducted as part of this appraisal assignment are summarized as follows: Property Inspection Party Inspection Type Inspection Date Constantino G. Naoum Interior and exterior June 1, 2023 Anthony Sanna, MAI, CRE Interior and exterior June 1, 2023 Valuation Methodology Three approaches to value are typically considered when developing a market value opinion for real property. These are the cost approach, the sales comparison approach, and the income capitalization approach. Use of the approaches in this assignment is summarized as follows: Approaches to Value Approach Applicability to Subject Use in Assignment Cost Approach Not Applicable Not Utilized Sales Comparison Approach Applicable Utilized Income Capitalization Approach Applicable Utilized The income capitalization approach is the most reliable valuation method for the subject due to the following: • The probable buyer of the subject would base a purchase price decision primarily on the income generating potential of the property and an anticipated rate of return. • Sufficient market data regarding income, expenses, and rates of return is available for analysis. The sales comparison approach is an applicable valuation method because: • There is an active market for similar properties, and sufficient sales data is available for analysis. • This approach directly considers the prices of alternative properties having similar utility. The cost approach is not applicable to the assignment considering the following: • The age of the property would limit the reliability of an accrued depreciation estimate. • This approach is not typically used by market participants, except for new (or proposed) or nearly new properties. Surrounding Area Analysis 11 Ottawa Towers Property Economic Analysis Surrounding Area Analysis Pontiac is the county seat and considered a mature, built-out community that is surrounded by the communities of Auburn Hills and Orion Township to the north, Waterford Township and Sylvan Lake to the west, Bloomfield Township and Bloomfield Hills to the south, and Rochester Hills and Auburn Hills to the east. The subject is situated within downtown Pontiac, which is represented by a black arrow in the following map in relation to the city boundaries. Surrounding Area Analysis 12 Ottawa Towers Property Access and Linkages Primary access and linkages to the subject area, including highways, roadways and public transit are summarized in the following table. Interstate-75 Freeway is east of the subject with accessibility via M-59. These roadways provide convenient access to the local, regional and interstate road and freeway networks. The subject is in the “loop” enjoying good accessibility. Public bus transportation is provided by the SMART bus service (Suburban Mobility Authority for Regional Transportation), while Detroit is served by the DDOT (Detroit Department of Transportation) system. Train service in metro-Detroit is provided by Amtrak, including the nearest station in Pontiac, in addition to other stations in Ann Arbor, Birmingham, Dearborn, Detroit, and Royal Oak. While the Detroit Metro Airport in Romulus is the main airport in SE Michigan, a smaller, primarily corporate airport, known as the Oakland County International Airport, is located just west of Pontiac in Waterford Township. Demand Generators The typical generators of demand affecting the subject property and its market are discussed and analyzed below. Employment and Employment Centers Oakland County has a solid employment base supported by various international, national, and local companies. Significant employment in SE Michigan is related to the auto industry with various administrative, research/design, and manufacturing facilities located throughout the region. The North American headquarters for Stellantis (former Chrysler) is located in Auburn Hills, Ford is headquartered in Dearborn, and General Motors has large operations in Detroit and Warren. The largest concentrations of office buildings and corporate facilities in SE Michigan are located in Southfield, Troy and Detroit. Other major employers in this economy include education, health care, government, and banking. Access & Linkages Vehicular Access Major Highways I-75 and M-59 Primary Corridors Telegraph Road, Orchard Lake Road, South Boulevard, Woodward Avenue, Opdyke Road Vehicular Access Rating Average Public Transit Providers SMART Airport(s) Name Detroit Metropolitan-Wayne County Airport Distance 30 miles Driving Time 40-50 minutes Primary Transportation Mode Automobile Surrounding Area Analysis 13 Ottawa Towers Property Significant office and industrial development is located along the I-75 corridor in this portion of Oakland County, as well as the M-59 Freeway. Much of this development is associated with the automotive industry as the Stellantis Technology Center, is situated along the I-75 Freeway, just north of the M-59 Freeway. In addition to Stellantis, various corporate business parks, research and technology centers, engineering and professional office buildings, and industrial facilities are located in close proximity. General Motors operates a large manufacturing facility in Pontiac, as well as various related production, administration and support buildings. With both Stellantis and General Motors maintaining a major presence in this portion of Oakland County, various auto-related suppliers, engineering, staffing, and other supporting businesses are concentrated in Pontiac, Auburn Hills, Orion Township, Troy, and Rochester Hills. The portion of Interstate-75 that travels through this portion of Oakland County is commonly referred to “Automation Alley” given the large number of auto-related industrial facilities and office/professional buildings. The Pontiac Silverdome, which was the former home of the Detroit Lions (NFL), has been demolished and the underlying 127-acre site located at the intersection of M-59 and Opdyke Road has been redeveloped into a corporate park, including a new Amazon regional fulfillment and distribution center containing over 820,000 square feet. This area also contains retail and commercial development such as hotels, restaurants, retail buildings, and service establishments. Several hospital and medical facilities in this portion of Oakland County provide significant employment in this area, as well as jobs related to education (public school districts and Oakland University). Overall, the subject is well positioned in close proximity to various employment centers. Furthermore, additional employment opportunities are easily reached in surrounding areas given the subject’s location in SE Michigan and convenient access to the local and national freeway system. Large employment centers are located in Ann Arbor to the southwest, Lansing to the west, Flint/Saginaw to the north, and Toledo, Ohio to the south. SE Michigan is also a major transportation corridor as this region provides two international connections with Canada (Windsor from Detroit and Sarnia from Port Huron). Nearby Retail Uses Pontiac is an older, urban community with a central business district (CBD) containing a concentration of office and commercial buildings. Although the CBD has declined in recent decades regarding the number of businesses, occupied buildings, and attractions, this submarket is benefitting from increasing redevelopment activity in recent years. The subject is centrally located in the CBD which contains many bars/restaurants, institutions, office buildings, and mixed-use projects among others. The subject is relatively near commercial development found in adjacent communities. Located just north of Pontiac is Great Lakes Crossing at the southeast quadrant of Baldwin Road and I-75, which is the state’s only enclosed regional “outlet” mall. Anchor tenants include Burlington Coat Factory, Bass Pro Shop as well as a variety of other national retailers. Commercial development is also concentrated along the portion of Telegraph Road with Bloomfield Township that is situated along the southwest border of Pontiac. In addition to large buildings such as Surrounding Area Analysis 14 Ottawa Towers Property Costco, Target, Menard’s, and Dicks Sporting Goods, various other national retailers and local stores are in various strip centers and free-standing buildings. Commercial development in this area also includes banking centers, hotels, restaurants, entertainment, and office buildings. Demographic Factors A demographic profile of the surrounding area, including population, households, and income data, is presented in the following table. Surrounding Area Demographics 2023 Estimates Pontiac Oakland County Michigan Population 2020 61,606 1,274,395 10,077,331 Population 2023 61,548 1,277,325 10,058,043 Population 2028 62,053 1,292,634 10,086,432 Compound % Change 2020-2023 0.0%0.1%-0.1% Compound % Change 2023-2028 0.2%0.2%0.1% Households 2020 23,993 524,047 4,041,760 Households 2023 24,002 527,326 4,051,283 Households 2028 24,217 535,979 4,081,962 Compound % Change 2020-2023 0.0%0.2%0.1% Compound % Change 2023-2028 0.2%0.3%0.2% Median Household Income 2023 $38,893 $89,267 $66,041 Average Household Size 2.5 2.4 2.4 College Graduate %14%48%30% Median Age 36 42 41 Owner Occupied %45%71%72% Renter Occupied %55%29%28% Median Owner Occupied Housing Value $90,820 $330,858 $217,694 Median Year Structure Built 1958 1974 1971 Average Travel Time to Work in Minutes 25 30 27 Source: Claritas Pontiac has a stable population. The household income in the city is less than the county and state. Pontiac has a higher number of renter occupied housing versus the county and state. Home values in the city also lag the county and state. Services and Amenities The subject is served by the Pontiac school district. Fire service is provided by Waterford Township and police protection is provided by the Oakland County Sheriff. Nearby colleges include Oakland University in Auburn Hills and Rochester College in Rochester Hills. Oakland Community College operates several campuses include one in Auburn Hills and one in Waterford Township. Various private, parochial, specialty and trade schools are present in this area. Surrounding Area Analysis 15 Ottawa Towers Property Land Use Predominant land uses in the immediate vicinity of the subject include general commercial/retail, office, and mixed-uses interspersed with residential neighborhoods and apartment buildings. Land use characteristics of the area are summarized below. Outlook and Conclusions The area is in the stability stage of its life cycle. This market area is adequately developed with housing, stores, services, schools, health care, and other public amenities. The freeway network provides residents with access to employment, services and shopping located in other parts of the market. The existing improvements at the subject are considered a compatible use for the neighborhood. Given the history of the area and the growth trends, it is anticipated that property values will remain stable in the near future. In comparison to other areas in the region, the area is rated as follows: Surrounding Area Land Uses Character of Area Urban Predominant Age of Improvements (Years)50+ Predominant Quality and Condition Average Approximate Percent Developed 99% Infrastructure and Planning Average Predominant Location of Undeveloped Land Largely developed community Prevailing Direction of Growth Scattered redevelopment Surrounding Area Ratings Highway Access Above Average Demand Generators Average Convenience to Support Services Average Convenience to Medical Services Average Convenience to Public Transit Average to Below Average Employment Stability Average Neighborhood Amenities Below Average Police and Fire Protection Aveerage to Below Average Barriers to Competitive Entry Average Price/Value Trends Average to Below Average Property Compatibility Average Surrounding Area Analysis 16 Ottawa Towers Property Surrounding Area Map Office Market Analysis 17 Ottawa Towers Property Office Market Analysis Data for the local office segment is presented below is provided by CoStar, a respected industry leader. We concentrated on office buildings in excess of 125,000 SF located in Oakland County, as outlined in the following map. There were approximately 115 properties that met this search parameters. As illustrated, the majority of these office properties are located in Troy, Auburn Hills, Southfield, and Farmington Hills. The following table indicates there is approximately 25,000,000 SF of office inventory in the analyzed area. The vacancy rate is currently at 26.6%, which has increased 2.4% from the previous period. Average market rent is around $22.00/SF, on modified gross terms. Office Market Analysis 18 Ottawa Towers Property Between 2013 and 2020, asking market rent steadily climbed as the office market was seeing vast improvement during this timeframe. Market rent has remained relatively flat since 2020 as the COVID pandemic allowed employers to embrace remote working. Asking rent is forecasted to enter a period of decline in the coming years due to the uncertainty of future demand as most companies will reevaluate office space needs on lease expirations. Between 2013 and 2018, market vacancy rate declined from 29% to 19%, but seen an increase over the past few years to the current level of 26-27%. Large office buildings have been negatively affected post-COVID as large corporations have embraced remote working in some capacity. This has impacted occupancy levels negatively with vacancy rates forecasted to climb upwards at the current time. Office Market Analysis 19 Ottawa Towers Property The following table summarizes occupancy levels of various buildings within the subset: The above buildings have quoted occupancy levels ranging from 70% to 93%. Comparable Details Address/Name:18000 W. 9 Mile Property Class:B Location:Southfield Occupancy Level:> 90% Building Type:Office Tower Expense Structure:¹Mod. Gross Building Size (SF):245,000 Rental Rate Range:¹$12-14/SF Yr. Blt./Renovated:1975 Comparison to Subj.:Similar Address/Name:Riker Building Property Class:B Location:Pontiac Occupancy Level:70% Building Type:Office Expense Structure:¹Full Service Building Size (SF):50,000 Rental Rate Range:¹$11-14/SF Yr. Blt./Renovated:1928, 1987 Comparison to Subj.:Inferior Address/Name:23077 Greenfield Property Class:B Location:Southfield Occupancy Level:71% Building Type:Office Bldg.Expense Structure:¹Mod. Gross Building Size (SF):290,000 Rental Rate Range:¹$12-15/SF Yr. Blt./Renovated:1971 Comparison to Subj.:Similar Address/Name:Crown Pointe Property Class:B Location:Oak Park Occupancy Level:88% Building Type:Office Bldg.Expense Structure:¹Mod. Gross Building Size (SF):265,000 Rental Rate Range:¹$12-14/SF Yr. Blt./Renovated:1972 Comparison to Subj.:Similar Address/Name:Nine Mile Crossing Property Class:B Location:Southfield Occupancy Level:93% Building Type:Office Tower Expense Structure:¹Full Service Building Size (SF):140,000 Rental Rate Range:¹$12-14/SF Yr. Blt./Renovated:1969 Comparison to Subj.:Similar ¹ Quoted terms are adjusted to modified gross terms whereas the tenant pays base rent plus in-suite electric. Office Market Analysis 20 Ottawa Towers Property The following table relates to leasing activity, which remained relatively stable over the past couple of years but a decline in activity over the past couple of quarters is observed. Office Market Outlook and Conclusions The following factors are considered when selecting an appropriate vacancy rate for the subject: • Located in downtown Pontiac with excellent visibility. • The subject has direct access to the Phoenix Center parking garage which contains roughly 2,700 stalls/spaces. The garage is owner a ground lease which requires the owner of the Ottawa Towers to maintain and operate the garage. • Oakland County as a primary occupant would have the added benefit of retaining and attracting tenants to the property as it would anchor this asset for the long-term. • Oakland County has a AAA bond rating from S&P which is described as extremely strong and the highest possible rating to secure. • The impact of remote working on future office demand. Based upon the previous data and the subject’s competitive position, a vacancy rate of 18.0% is concluded for the subject. Land Description and Analysis 21 Ottawa Towers Property Property Analysis Land Description and Analysis Land Description Land Area 14.65 acres; 637,936 SF Source of Land Area Public Records Primary Street Frontage Woodward Ave. Secondary Street Frontage E. Judson St. Shape Irregular Corner Yes Topography Generally level and at street grade Drainage No problems reported or observed Environmental Hazards None reported or observed Ground Stability No problems reported or observed Flood Area Panel Number 26125C0368F Date September 29, 2016 Zone X Description Outside of 500-year floodplain Insurance Required?No Zoning; Other Regulations Zoning Jurisdiction City of Pontiac Zoning Designation C-2 Description Downtown Mixed Use Legally Conforming?Appears to be legally conforming Zoning Change Likely?No Permitted Uses Multifamily, commercial, office, and service uses Other Land Use Regulations None noted Utilities Service Provider Water Municipal Sewer Municipal Electricity DTE Natural Gas Consumers Local Phone Various We are not experts in the interpretation of zoning ordinances. An appropriately qualified land use attorney should be engaged if a determination of compliance with zoning is required. Land Description and Analysis 22 Ottawa Towers Property Land Area Summary Land Area Summary Tax ID Address SF Acres 14-32-226-020 51111 Woodward - Property 1 77,058 1.77 14-32-227-002 31 E. Judson - Property 2 45,869 1.05 14-29-484-006 Phoenix Garage - Property 3 363,726 8.35 14-32-226-021 E. Judson Land - Property 4 21,867 0.50 14-32-227-003 Woodward/Judson Land - Property 5 17,816 0.41 14-29-484-003 Water Sreet Westerly Land - Property 6 46,174 1.06 14-29-484-010 Water Sreet Easterly Land - Property 7 41,818 0.96 14-32-231-009 Woodward/Wittemore Land - Property 8 23,610 0.54 Total 637,936 14.65 Source: Public Records It should be noted that Properties 5-8 represent land parcels and total 3.47 acres, please refer to the aerial plat on the next page. These land parcels will be valued separately and added into the valuation of the office towers. Easements, Encroachments and Restrictions A current title report was not provided for review. There are no apparent easements, encroachments, or restrictions that would adversely affect value. This valuation assumes no adverse impacts from easements, encroachments, or restrictions, and further assumes that the subject has clear and marketable title. Conclusion of Site Analysis Overall, the physical characteristics and the availability of utilities result in a functional site, suitable for a variety of uses including those permitted by zoning. Uses permitted by zoning include multifamily, commercial, office, and service uses. No other restrictions on development are apparent. Land Description and Analysis 23 Ottawa Towers Property Aerial Photograph Land Description and Analysis 24 Ottawa Towers Property Flood Hazard Map Improvements Description and Analysis 25 Ottawa Towers Property Improvements Description and Analysis Overview The subject relates to two, office towers containing 391,217 square feet of rentable area, a parking garage containing roughly 2,700 spaces, and various land parcels that total 3.47 acres combined. The office towers are identified as 51111 Woodward Avenue (Tower 1) and 31 E. Judson Street (Tower 2), which were constructed in 1981. These various components are described in greater detail within the body of this report. The following description is based on the inspection of the property and discussions with ownership. Improvements Description `Overall Property 51111 Woodward Ave.31 E. Judson St. Name of Property Ottawa Towers I-II Tower 1 Tower 2 General Property Type Office Office Office Property Sub Type General Purpose General Purpose General Purpose Competitive Property Class B B B Occupancy Type Multi-Tenant Multi-Tenant Vacant Percent Leased - Overall 82%63%0% Number of Buildings 2 1 1 Stories 8 8 8 Construction Class A A A Construction Type Steel frame Steel frame Steel frame Construction Quality Good Good Good Condition Average Average Average Gross Building Area (SF)425,970 225,970 200,000 Rentable Area (SF)391,217 225,970 200,000 Land Area (SF) - Tower I & II 122,927 77,058 45,869 Floor Area Ratio (RA/Land SF)3.18 2.93 4.36 Floor Area Ratio (GBA/Land SF)3.47 2.93 4.36 Building Area Source Rent Roll Rent Roll Rent Roll Year Built 1981 1981 1981 Actual Age (Yrs.)42 42 42 Estimated Effective Age (Yrs.)20 20 20 Estimated Economic Life (Yrs.)50 50 50 Remaining Economic Life (Yrs.)30 30 30 Number of Parking Spaces 2,700 Phoenix Center Garage Phoenix Center Garage Parking Spaces/1,000 SF RA 6.90 n/a n/a Improvements Description and Analysis 26 Ottawa Towers Property Construction Details 51111 Woodward Ave.31 E. Judson St. Foundation Concrete Concrete Structural Frame Steel Steel Exterior Walls Sheet metal Sheet metal Roof TPO, redone in 2015 Asphalt and gravel (original) Interior Finishes Carpet, LED lighting, and tile. Dated finishes in some areas per our inspection. Carpet, LED lighting, and tile. Dated finished per our inspection. HVAC Chiller w/ dual boiler system Chiller w/ dual boiler system Elevators 4 5 (includes service elevator) Sprinklers Yes Yes Occupancy Status The property is 82% leased to various tenants, which assumes Oakland County is occupying their space at 31 E. Judson, as of the date of value. The following table provides a summary of the sizes and leased percentages of the building areas. Locations and Occupancy Location Gross Building Area Rentable Area Leased SF % Leased 51111 Woodward 225,970 191,217 120,329 62.9% 31 E. Judson 200,000 200,000 200,000 100.0% TOTAL 425,970 391,217 320,329 81.9% Improvements Analysis The current property owner has invested over $400,000 since purchase regarding building improvements, not including items related to tenant buildouts. This capital improvements relate to renovating the lobby, electrical system, lighting, etc. Quality and Condition Based on the hypothetical condition that that the interior renovations as it relates to carpet, paint, etc., has been completed as of the effective date of value, the subject is considered to be consistent to that of competing properties. Functional Utility The property is adequately suited for multi-tenant occupancy. However, its larger floor plates necessitates either larger users or increased expense in demising the floor plate to accommodate smaller users. The overall condition of the property is in reasonably good condition. Improvements Description and Analysis 27 Ottawa Towers Property Deferred Maintenance No deferred maintenance is apparent from the property inspection, and none is identified based on the discussions with current ownership. A property conditions report was not provided for review. Planned Capital Expenditures The Phoenix Center parking garage will require a capital infusion to update the structure to current market standards and accommodate additional workers and patrons. No budget was available regarding this matter however a multimillion dollar expense would be expected. Due to the unknown level of expense, this situation will be handled via a capitalization rate premium. ADA Compliance Based on the property inspection and information provided, there are no apparent ADA issues. However, ADA matters are beyond the scope of expertise of the assignment participants, and further study by an appropriately qualified professional would be recommended to assess ADA compliance. Hazardous Substances An environmental assessment report was not provided for review, and environmental issues are beyond the scope of expertise of the assignment participants. No hazardous substances were observed during the inspection of the improvements; however, detection of such substances is outside the scope of expertise of the assignment participants. Qualified professionals should be consulted. Unless otherwise stated, it is assumed no hazardous conditions exist on or near the subject. Personal Property No personal property items are identified which would have any material contribution to market value. Conclusion of Improvements Analysis In comparison to competitive properties in the market, the subject improvements are rated as follows: Improvements Ratings Visibility/Exposure Above Average Design and Appearance Average Age/Condition Average Landscaping Average Improvements Description and Analysis 28 Ottawa Towers Property 51111 Woodward exterior view 31 E. Judson exterior view 31 E. Judson exterior view 31 E. Judson cafeteria 31 E. Judson elevators 31 E. Judson cafe seating Improvements Description and Analysis 29 Ottawa Towers Property 31 E. Judson loading dock 31 E. Judson vacant floor 31 E. Judson lobby area 31 E. Judson mechanicals 31 E. Judson vacant floor 31 E. Judson staircase in lobby Improvements Description and Analysis 30 Ottawa Towers Property 31 E. Judson restroom 31 E. Judson stairwell 51111 Woodward elevator 51111 Woodward conference center 31 E. Judson roof 51111 Woodward vacant floor Improvements Description and Analysis 31 Ottawa Towers Property 51111 Woodward vacant floor 51111 Woodward occupied suite 51111 Woodward loading dock 51111 Woodward occupied suite 51111 Woodward vacant floor 51111 Woodward mechanicals Improvements Description and Analysis 32 Ottawa Towers Property 51111 Woodward main lobby 51111 Woodward restroom 51111 Woodward roof Parking garage Parking garage Parking garage Improvements Description and Analysis 33 Ottawa Towers Property Parking garage Parking garage Land parcel along E. Judson Land parcel at corner of E. Judson and Woodward Vacant parcels along Water Street Real Estate Taxes 34 Ottawa Towers Property Real Estate Taxes In the State of Michigan, the following three assessed values are carried on the tax roll for any property: 1. State Equalized Value (SEV) 2. Capped Value (CV) 3. Taxable Value (TV). The TV is established as the lower of the SEV and CV. The SEV, which is often referred to as the assessed value, is established for property tax purposes and is theoretically equal to 50% of the local assessor’s opinion of market value or true cash value (TCV). The SEV for any given year is set as of December 31 of the preceding year and is to be similar to assessments for similar property. The CV results from a constitutional provision for a cap on assessment increases. The increase is limited to the rate of inflation in any year (based on the Consumer Price Index) or an overall constitutional limit of 5% per year, whichever limitation results in the lowest taxable value. This limitation continues until a property is sold or transferred as defined by assessment regulations whereupon the cap provision is suspended. A total millage rate is applied to taxable value resulting in the annual tax burden for a property. Municipalities and counties are given the authority to levy property taxes at varying levels as well as there being a provision for a state-levied property tax for education purposes. Local school districts have the authority to levy, after voter approval, a non-homestead tax of up to an additional 18 mills and, in limited instances, an enhancement tax. The reported tax rate is a summation of the levies of the various taxing bodies. Real estate taxes and assessments for the current tax year are shown in the following table. Taxes and Assessments - 2023 Assessed Value Taxes and Assessments Tax ID True Cash Value (TCV) Assessed Value / SEV Taxable / Capped Value Tax Rate Capped Taxes Uncapped Taxes 14-32-226-020 $2,919,540 $1,459,770 $1,459,770 5.520000%$80,579 $80,579 14-32-227-002 $1,888,480 $944,240 $944,240 5.520000%$52,122 $52,122 14-29-484-006 $0 $0 $0 5.520000%$0 $0 14-32-226-021 $27,340 $13,670 $13,670 5.520000%$755 $755 14-32-227-003 $35,280 $17,640 $17,640 5.520000%$974 $974 14-29-484-003 $81,920 $40,960 $40,960 5.520000%$2,261 $2,261 14-29-484-010 $152,640 $76,320 $76,320 5.520000%$4,213 $4,213 14-32-231-009 $46,740 $23,370 $23,370 5.520000%$1,290 $1,290 $5,151,940 $2,575,970 $2,575,970 $142,194 $142,194 Real Estate Taxes 35 Ottawa Towers Property Based on the concluded market value of the subject, the assessed value appears low. The first two parcels relate to the office towers and indicate a combined tax liability of $132,701. Since the property will have significant investment to update interior finishes and exterior features, we adjust this figure upward 10% which implies an adjusted figure of $145,971, which is utilized for the stabilized date of value of the office buildings. Highest and Best Use 36 Ottawa Towers Property Highest and Best Use The highest and best use of a property is the reasonably probable use resulting in the highest value, and represents the use of an asset that maximizes its productivity. Process Before a property can be valued, an opinion of highest and best use must be developed for the subject site, both as though vacant, and as improved or proposed. By definition, the highest and best use must be: • Physically possible. • Legally permissible under the zoning regulations and other restrictions that apply to the site. • Financially feasible. • Maximally productive, i.e., capable of producing the highest value from among the permissible, possible, and financially feasible uses. As Though Vacant – Towers I-II & Parking Garage First, the property is evaluated as though vacant, with no improvements. Physically Possible The physical characteristics of the site do not appear to impose any unusual restrictions on development. Overall, the physical characteristics of the site and the availability of utilities result in functional utility suitable for a variety of uses. Legally Permissible The site is zoned C-2, Downtown Mixed Use. Permitted uses include multifamily, commercial, office, and service uses. There are no apparent legal restrictions, such as easements or deed restrictions, effectively limiting the use of the property. Given prevailing land use patterns in the area, only mixed- use is given further consideration in determining highest and best use of the site, as though vacant. Financially Feasible Based on the accompanying analysis of the market, there is currently demand for additional mixed- use development at the current time. However, it appears a newly developed mixed-use on the site would not have a value commensurate with its cost. It appears construction costs are currently outpacing value in the market; therefore, mixed-use is not considered to be financially feasible. Maximally Productive There does not appear to be any reasonably probable use of the site that would generate a higher residual land value than holding the property for future development of a mixed-use. Accordingly, holding the property for future mixed-use, based on the normal market density level permitted by zoning, is the maximally productive use of the property. Highest and Best Use 37 Ottawa Towers Property Conclusion Holding the property for future development of a mixed-use is the only use which meets the four tests of highest and best use. Therefore, it is concluded to be the highest and best use of the property as though vacant. As Improved – Towers I-II & Parking Garage The subject site is developed with two, office buildings and an adjoining parking garage, which is consistent with the highest and best use of the site as though vacant. The existing improvements are currently leased and produce a significant positive cash flow that is expected to continue. Several scenarios are examined to analyze feasibility, as follows: Demolition: The value of the existing improved property exceeds the value of the site, as though vacant. Thus, demolition is not feasible. Conversion: A repurposing of the subject property is not likely to result in significantly higher rental rates or property value. Converting the subject property to an alternative use is not applicable in this case, nor is it likely. Expansion: There is no excess or surplus land available for expansion. The property’s building to land ratio of falls within the typical range observed among competing properties. Expansion appears unlikely. Renovation: Renovating the property to accommodate Oakland County as an occupant would result in substantially greater value. The property has historically suffered from higher vacancy due to limited tenant demand from large users. Retrofitting the space for a large occupant such as Oakland County, would maximize the value of the property as it would solidify full occupancy of the property and perhaps attract and retain other tenants to the property as well. Continuation: The current use of the subject property meets the four criteria for highest and best use. Based on the analysis above, a continuation of the current use is concluded to be financially feasible. Based on the analysis in the income capitalization approach, the project appears to be financially feasible, including a reasonable line item for entrepreneurial profit. There does not appear to be any alternative use that could reasonably be expected to provide a higher present value than the current use, and the value of the existing improved property exceeds the value of the site, as though vacant. For these reasons, continued office use is concluded to be maximally productive and the highest and best use of the property as improved. Various Land Parcels Inventory for future mixed-use development. Most Probable Buyer Taking into account the size and characteristics of the property and its occupancy, the likely buyer is a local / regional investor. Valuation Methodology 38 Ottawa Towers Property Valuation Valuation Methodology Appraisers usually consider three approaches to estimating the market value of real property. These are the cost approach, sales comparison approach and the income capitalization approach. The cost approach assumes that the informed purchaser would pay no more than the cost of producing a substitute property with the same utility. This approach is particularly applicable when the improvements being appraised are relatively new and represent the highest and best use of the land or when the property has unique or specialized improvements for which there is little or no sales data from comparable properties. The sales comparison approach assumes that an informed purchaser would pay no more for a property than the cost of acquiring another existing property with the same utility. This approach is especially appropriate when an active market provides sufficient reliable data. The sales comparison approach is less reliable in an inactive market or when estimating the value of properties for which no directly comparable sales data is available. The sales comparison approach is often relied upon for owner-user properties. The income capitalization approach reflects the market’s perception of a relationship between a property’s potential income and its market value. This approach converts the anticipated net income from ownership of a property into a value indication through capitalization. The primary methods are direct capitalization and discounted cash flow analysis, with one or both methods applied, as appropriate. This approach is widely used in appraising income-producing properties. Reconciliation of the various indications into a conclusion of value is based on an evaluation of the quantity and quality of available data in each approach and the applicability of each approach to the property type. The methodology employed in this assignment is summarized as follows: Approaches to Value Approach Applicability to Subject Use in Assignment Cost Approach Not Applicable Not Utilized Sales Comparison Approach Applicable Utilized Income Capitalization Approach Applicable Utilized The sales comparison approach is utilized for the various parcels of land that are vacant. Land Valuation – Various Parcels 39 Ottawa Towers Property Land Valuation – Various Parcels The following aerial and corresponding narrative describes the land parcels that will be valued separately: Property 4: This relates to the land parcel located on the north side of E. Judson, east of southbound Woodward Avenue. This land parcel contains 21,867 SF and is zoned C-2, Downtown Mixed Use. Property 5: This relates to the land parcel located on the northwest corner of E. Judson and northbound Woodward Avenue. This land parcel contains 17,816 SF and is zoned C-2, Downtown Mixed Use. Properties 6 & 7: These relate to the land parcels located on the south side of Water Street, west of southbound Woodward Avenue. Combined, these land parcels contain 87,992 SF and zoned C-2, Downtown Mixed Use. It should be noted that these properties are currently improved with pavement as the parcels were part of a parking lot. Furthermore, a couple of concrete staircases leading to the Phoenix Center garage are also situated on these properties. These improvements were viewed to be in below average condition and require to be demolished to allow redevelopment of these land parcels. We have estimated a demolition expense of $100,000. Land Valuation – Various Parcels 40 Ottawa Towers Property Property 8: This relates to the land parcel located on the southwest corner of Whittemore Street and northbound Woodward Avenue. This land parcel contains 23,610 SF and is zoned C-2, Downtown Mixed Use. To develop an opinion of land value for these various parcels, the sales comparison approach is used. This approach develops an indication of value by researching, verifying, and analyzing sales of similar properties. For this analysis, price per square foot is used as the appropriate unit of comparison because market participants typically compare sale prices and property values on this basis. The most relevant sales are summarized in the following table: Summary of Comparable Land Sales No.Name/Address Sale Date; Status Effective Sale Price SF; Acres Zoning $/SF Land 1 Vacant Land Aug-22 $625,000 112,559 M-1 $5.55 4401 E. Eight Mile Rd. Closed 2.58 Warren Macomb County 2 Dollar General Land Apr-22 $265,000 64,033 C-3 $4.14 450 E. Walton Blvd.Closed 1.47 Pontiac Oakland County 3 Vacant Land Mar-22 $60,000 17,424 C-1 $3.44 1272 Baldwin Ave. Closed 0.40 Pontiac Oakland County 4 Vacant Land Aug-21 $775,000 130,680 C-4 $5.93 3111 Centerpoint Pky. Closed 3.00 Pontiac Oakland County Subject Various C-2 Land Parcels 0.41 AC - 2.02 AC Pontiac, MI Complete writeups with additional information of each of the previous sales are found in the addendum for review. Land Valuation – Various Parcels 41 Ottawa Towers Property Comparable Land Sales Map Land Valuation – Various Parcels 42 Ottawa Towers Property Sale 1 Vacant Land Sale 2 Dollar General Land Sale 3 Vacant Land Sale 4 Vacant Land Land Valuation – Various Parcels 43 Ottawa Towers Property Analysis and Adjustment of Sales Adjustments are based on a rating of each comparable sale in relation to the subject. The adjustment process is typically applied through either quantitative or qualitative analysis, or a combination of both analyses. Quantitative adjustments are often developed as dollar or percentage amounts, and are most credible when there is sufficient data to perform a paired sales analysis. While percentage adjustments are presented in the adjustment grid, they are based on qualitative judgment rather than empirical research, as there is not sufficient data to develop a sound quantitative estimate. Although the adjustments appear to be mathematically precise, they are merely intended to illustrate an opinion of typical market activity and perception. With the exception of market conditions, the adjustments are based on a scale, with a minor adjustment in the range of 5% and a substantial adjustment considered to be 20% or greater. The rating of each comparable sale in relation to the subject is the basis for the adjustments. If the comparable is superior to the subject, its sale price is adjusted downward to reflect the subject’s relative attributes; if the comparable is inferior, its price is adjusted upward. Transactional adjustments are applied for property rights conveyed, financing, conditions of sale, expenditures made immediately after purchase, and market conditions. In addition, property adjustments include – but are not limited to – location, access/exposure, size, quality, effective age, economic and legal characteristics, and non-realty components of value. Adjustments are considered for the following factors, in the sequence shown below. Transactional Adjustments Real Property Rights Conveyed The opinion of value in this report is based on a fee simple estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat, as well as non-detrimental easements, community facility districts, and conditions, covenants and restrictions (CC&Rs). All the comparables represent fee simple estate transactions. Therefore, adjustments for property rights are not necessary. Financing Terms In analyzing the comparables, it is necessary to adjust for financing terms that differ from market terms. Typically, if the buyer retained third-party financing (other than the seller) for the purpose of purchasing the property, a cash price is presumed and no adjustment is required. However, in instances where the seller provides financing as a debt instrument, a premium may have been paid by the buyer for below-market financing terms, or a discount may have been demanded by the buyer if the financing terms were above market. The premium or discounted price must then be adjusted to a cash equivalent basis. The comparable sales represented cash-to-seller transactions and, therefore, do not require adjustment. Land Valuation – Various Parcels 44 Ottawa Towers Property Conditions of Sale Adverse conditions of sale can account for a significant discrepancy from the sale price actually paid, compared to that of the market. This discrepancy in price is generally attributed to the motivations of the buyer and the seller. Certain conditions of sale are considered non-market and may include the following: • a seller acting under duress (e.g., eminent domain, foreclosure); • buyer motivation (e.g., premium paid for assemblage, certain 1031 exchanges); • a lack of exposure to the open market; • an unusual tax consideration; • a sale at legal auction. None of the comparable sales had atypical or unusual conditions of sale. Thus, adjustments are not necessary. Market Conditions A market conditions adjustment is applied when market conditions at the time of sale differ from market conditions as of the effective date of value. Adjustments can be positive when prices are rising, or negative when markets are challenged by factors such as a deterioration of the economy or adverse changes in supply and/or demand in the market area. Consideration must also be given to when the property was placed under contract, versus when the sale actually closed. In evaluating market conditions, changes between the comparable sale date and the effective date of this appraisal may warrant adjustment; however, if market conditions have not changed, then no adjustment is required. The sales took place from August 2021 to August 2022. All sales executed after mid-2022 are considered reflective of current market conditions with no adjustments applied. Sale 4 was executed in 2021 and adjusted downward slightly as interest rates have escalated drastically sense this timeframe and affected land prices negatively. Property Adjustments Location Factors considered in evaluating location include, but are not limited to, demographics, growth rates, surrounding uses and property values. All of the comparables are similar to the subject. No adjustments are necessary. Access/Exposure Convenience to transportation facilities, ease of site access, and overall visibility of a property can have a direct impact on property value. High visibility, however, may not translate into higher value if it is not accompanied by good access. In general, high visibility and convenient access, including Land Valuation – Various Parcels 45 Ottawa Towers Property proximity to major linkages, are considered positive amenities when compared to properties with inferior attributes. All of the comparables are similar to the subject. No adjustments are necessary. Size Due to economies of scale, the market exhibits an inverse relationship between land area and price per square foot, such that larger sites generally sell for a lower price per square foot than smaller lots, all else being equal. To account for this relationship, applicable adjustments are applied for differences in land area. The comparables that are larger than the subject will be adjusted upward, and vice versa. The land parcels being valued range in size from 0.41 to 2.02 acres. Due to the varying sizes, we do not apply any adjustments to the sales as this characteristic will be considered when selecting a concluded unit rate for each property. Shape and Topography This category accounts for the shape of the site influencing its overall utility and/or development potential, as well as the grade of the land. Sales 1, 2 and 3 are similar to the subject and require no adjustment. Sale 4 is inferior to the subject. An upward adjustment is applied. Zoning This element of comparison accounts for government regulations that can affect the types and intensities of uses allowable on a site. Moreover, this category includes considerations such as allowable density or floor area ratio, structure height, setbacks, parking requirements, landscaping, and other development standards. The subject has a zoning designation of C-2 - Downtown Mixed Use. Sale 2 is similar to the subject and requires no adjustment. Sale 4 is superior to the subject. A downward adjustment is applied. Sales 1 and 3 are inferior to the subject. Upward adjustments are applied. Land Valuation – Various Parcels 46 Ottawa Towers Property Adjustments Summary The sales are compared to the subject and adjusted to account for material differences that affect value. The following table summarizes the adjustments applied to each sale. Land Sales Adjustment Grid Subject Comparable 1 Comparable 2 Comparable 3 Comparable 4 Name Land Parcels Vacant Land Dollar General Land Vacant Land Vacant Land Address Various Locations 4401 E. Eight Mile Rd. 450 E. Walton Blvd. 1272 Baldwin Ave. 3111 Centerpoint Pky. City Pontiac Warren Pontiac Pontiac Pontiac County Oakland Macomb Oakland Oakland Oakland State Michigan MI MI MI MI Sale Date Aug-22 Apr-22 Mar-22 Aug-21 Sale Status Closed Closed Closed Closed Effective Sale Price $625,000 $265,000 $60,000 $775,000 Square Feet Various 112,559 64,033 17,424 130,680 Acres 0.41 AC - 2.02 AC 2.58 1.47 0.40 3.00 Zoning Code C-2 M-1 C-3 C-1 C-4 Price per Square Foot $5.55 $4.14 $3.44 $5.93 Transactional Adjustments Property Rights Fee Simple Fee Simple Fee Simple Fee Simple % Adjustment –––– Financing Terms Cash to seller Cash to seller Cash to seller Cash to seller % Adjustment –––– Conditions of Sale Arm's-length Arm's-length Arm's-length Arm's-length % Adjustment –––– Market Conditions 6/1/2023 Aug-22 Apr-22 Mar-22 Aug-21 Annual % Adjustment 0%–––-5% Cumulative Adjusted Price $5.55 $4.14 $3.44 $5.63 Property Adjustments Location –––– Access/Exposure –––– Size –––– Shape and Topography –––5% Zoning 10%–5%-5% Net Property Adjustments ($)$0.56 $0.00 $0.17 $0.00 Net Property Adjustments (%)10%0%5%0% Final Adjusted Price $6.11 $4.14 $3.62 $5.63 Range of Adjusted Prices $3.62 - $6.11 Average $4.87 Land Value Conclusion Prior to adjustments, the sales reflect a range of $3.44 - $5.93 per square foot. After adjustment, the range is $3.62 - $6.11 per square foot, with an average of $4.87 per square foot. Land Valuation – Various Parcels 47 Ottawa Towers Property Property 4: Based on its size, zoning, and road frontage, the land value conclusion is presented as follows: Land Value Conclusion Property 4 Indicated Value per Square Foot $5.00 Subject Square Feet 21,867 Indicated Value $109,335 Rounded $110,000 Property 5: Based on its size, zoning, and road frontage, the land value conclusion is presented as follows: Land Value Conclusion Property 5 Indicated Value per Square Foot $5.50 Subject Square Feet 17,816 Indicated Value $97,988 Rounded $100,000 Properties 6 & 7: Based on its size, zoning, and road frontage, the land value conclusion is presented as follows: Land Value Conclusion Properties 6 & 7 Indicated Value per Square Foot $5.75 Subject Square Feet 87,992 Indicated Value $505,954 Adjustments Deduct: Demo Costs -$100,000 Total Adjustments -$100,000 Indicated Value $405,954 Rounded $410,000 Land Valuation – Various Parcels 48 Ottawa Towers Property Property 8: Based on its size, zoning, and road frontage, the land value conclusion is presented as follows: Land Value Conclusion Property 8 Indicated Value per Square Foot $4.00 Subject Square Feet 23,610 Indicated Value $94,440 Rounded $90,000 The following tables summarizes the previous value conclusions for each of the land parcels. Summary of Values Parcel Unit of Comparison Total SF Indicated Value per Square Foot Indicated Value Rounded Property 4 Total SF 21,867 $5.00 $109,335 $110,000 Property 5 Total SF 17,816 $5.50 $97,988 $100,000 Properties 6 & 7 Total SF 87,992 $5.75 $405,954 $410,000 Property 8 Total SF 23,610 $4.00 $94,440 $90,000 Total 151,285 $5.34 $707,717 $710,000 The land parcels indicate a total value of $710,000, which will be added into the value of the office towers accordingly. Sales Comparison Approach 49 Ottawa Towers Property Sales Comparison Approach The sales comparison approach develops an indication of value by comparing the subject to sales of similar properties. The steps taken to apply the sales comparison approach are: • Identify relevant property sales; • Research, assemble, and verify pertinent data for the most relevant sales; • Analyze the sales for material differences in comparison to the subject; • Reconcile the analysis of the sales into a value indication for the subject. For this analysis, price per square foot of rentable area is used as the appropriate unit of comparison because market participants typically compare sale prices and property values on this basis. The sales considered most relevant are summarized in the following table. Summary of Comparable Improved Sales No.Name/Address Sale Date; Status Yr. Blt.; # Stories; % Occ. Acres; FAR; Parking Ratio Effective Sale Price Rentable SF $/Rentable SF 1 Crown Pointe Dec-22 1972 8.92 $13,650,000 265,479 $51.42 25900 Greenfield Rd. Closed 6 0.75 Oak Park 85%3.01/1,000 Oakland County 2 Auburn Hills Corporate Center Dec-22 2000 7.24 $7,157,500 120,000 $59.65 900 N. Squirrel Rd. Closed 3 0.41 Auburn Hills 38%4.55/1,000 Oakland County 3 Lockdale Business Center Jun-22 1984 5.63 $6,000,000 93,988 $63.84 24725 W. Twelve Mile Rd. Closed 3 0.42 Southfield 47%3.87/1,000 Oakland County 4 Mars Corporate Center Apr-21 1974 7.84 $9,200,000 171,700 $53.58 25200 Telegraph Rd. Closed 5 0.56 Southfield 64%4.05/1,000 Oakland County Subject 1981 3.47 391,217 Ottawa Towers Property 8 2.59 Pontiac, MI 82%6.90/1,000 The sales are adjusted to the stabilized occupancy of 82% for the subject. Complete writeups with additional information of each of the previous sales are found in the addendum for review. Sales Comparison Approach 50 Ottawa Towers Property Comparable Improved Sales Map Sales Comparison Approach 51 Ottawa Towers Property Sale 1 Crown Pointe Sale 2 Auburn Hills Corporate Center Sale 3 Lockdale Business Center Sale 4 Mars Corporate Center Sales Comparison Approach 52 Ottawa Towers Property Analysis and Adjustment of Sales Adjustments are based on a rating of each comparable sale in relation to the subject. The adjustment process is typically applied through either quantitative or qualitative analysis, or a combination of both analyses. Quantitative adjustments are often developed as dollar or percentage amounts, and are most credible when there is sufficient data to perform a paired sales analysis. While percentage adjustments are presented in the adjustment grid, they are based on qualitative judgment rather than empirical research, as there is not sufficient data to develop a sound quantitative estimate. Although the adjustments appear to be mathematically precise, they are merely intended to illustrate an opinion of typical market activity and perception. With the exception of market conditions, the adjustments are based on a scale, with a minor adjustment of 5% and a substantial adjustment considered to be 20% or greater. The rating of each comparable sale in relation to the subject is the basis for the adjustments. If the comparable is superior to the subject, its sale price is adjusted downward to reflect the subject’s relative attributes; if the comparable is inferior, its price is adjusted upward. Transactional adjustments are applied for property rights conveyed, financing, conditions of sale, expenditures made immediately after purchase, and market conditions. In addition, property adjustments include – but are not limited to – location, access/exposure, size, quality, effective age, economic and legal characteristics, and non-realty components of value. Adjustments are considered for the following factors, in the sequence shown below. Transactional Adjustments Real Property Rights Conveyed Property rights considerations encompass a wide range of factors including, for example, deed type, deed restrictions, and whether the property is encumbered by leases. All of the comparables represent leased fee transactions, and adjustments for property rights are not necessary. Financing In analyzing the comparables, it is necessary to adjust for financing terms that differ from market terms. Typically, if the buyer retained third-party financing (other than the seller) for the purpose of purchasing the property, a cash price is presumed and no adjustment is required. However, in instances where the seller provides financing as a debt instrument, a premium may have been paid by the buyer for below-market financing terms, or a discount may have been demanded by the buyer if the financing terms were above market. The premium or discounted price must then be adjusted to a cash equivalent basis. Sale 1 was purchased via an assumption of debt; therefore, adjusted downward. Sales Comparison Approach 53 Ottawa Towers Property Conditions of Sale Adverse conditions of sale can account for a significant discrepancy from the sale price actually paid, compared to that of the market. This discrepancy in price is generally attributed to the motivations of the buyer and the seller. Certain conditions of sale are considered non-market and may include the following: • a seller acting under duress (e.g., eminent domain, foreclosure); • buyer motivation (e.g., premium paid for assemblage, certain 1031 exchanges); • a lack of exposure to the open market; • an unusual tax consideration; • a sale at legal auction. None of the comparable sales had atypical or unusual conditions of sale. Thus, adjustments are not necessary. Market Conditions A market conditions adjustment is applied when market conditions at the time of sale differ from market conditions as of the effective date of value. Adjustments can be positive when prices are rising, or negative when markets are challenged by factors such as a deterioration of the economy or adverse changes in supply and/or demand in the market area. Consideration must also be given to when the property was placed under contract, versus when the sale actually closed. In evaluating market conditions, changes between the comparable sale date and the effective date of this appraisal may warrant adjustment; however, if market conditions have not changed, then no adjustment is required. The sales took place from April 2021 to December 2022. All sales executed after mid-2022 are considered reflective of current market conditions with no adjustments applied. Sale 4 was executed in 2021 and adjusted downward slightly as interest rates have escalated drastically sense this timeframe and affected land prices negatively. Property Adjustments Location Factors considered in evaluating location include, but are not limited to, demographics, growth rates, surrounding uses and property values. Sales 1, 3 and 4 are similar to the subject. No adjustments are necessary. Sale 2 is adjusted downward for superior location. Access/Exposure Convenience to transportation facilities, ease of site access, and overall visibility of a property can have a direct impact on property value. High visibility, however, may not translate into higher value if it is not accompanied by good access. In general, high visibility and convenient access, including Sales Comparison Approach 54 Ottawa Towers Property proximity to major linkages, are considered positive amenities when compared to properties with inferior attributes. All of the comparables are similar to the subject. No adjustments are necessary. Building Size Due to economies of scale, the market exhibits an inverse relationship between building area and price per square foot such that larger buildings sell for a lower price per square foot than smaller buildings, all else being equal. To account for this relationship, applicable adjustments are applied for differences in building area. The comparables that are larger than the subject are adjusted upward, and vice versa. Sale 1 is similar to the subject and requires no adjustment. Sales 2, 3 and 4 are smaller than the subject, and downward adjustments are applied. Parking This adjustment refers to the amount and type of parking provided. The subject has a parking ratio of 6.90 spaces per 1,000 square feet of building area. All of the comparables have lower parking ratios than the subject. Upward adjustments are applied. Quality of Construction This category accounts for construction quality, amenities, market appeal and functional utility. All of the comparables are similar to the subject. No adjustments are necessary. Effective Age/Condition While year built can give insight into the utility of a property, the more important consideration is the level of condition and modernization of the property. The subject was constructed in 1981, has an effective age of 20 years, and is in average condition. Comparables exhibiting newer effective ages are adjusted downward to reflect the discrepancy in remaining economic life, and vice versa. All of the comparables are similar to the subject. No adjustments are necessary. Economic Characteristics Items considered in this category consist of non-stabilized occupancy, above/below market rents, tenant mix, and other economic factors. Excluded are differences in rent levels that are already considered in previous adjustments, such as for location or quality. Note: these adjustments are made as refinements. Care is made to avoid double-counting adjustments previously applied. All of the comparables are similar to the subject. No adjustments are necessary. Sales Comparison Approach 55 Ottawa Towers Property Adjustments Summary The following table summarizes the adjustments discussed above and applied to each sale. Improved Sales Adjustment Grid Subject Comparable 1 Comparable 2 Comparable 3 Comparable 4 Property Name Ottawa Towers Property Crown Pointe Auburn Hills Corporate Center Lockdale Business Center Mars Corporate Center Address 51111 Woodward Ave. & 31 E. Judson St. 25900 Greenfield Rd. 900 N. Squirrel Rd. 24725 W. Twelve Mile Rd. 25200 Telegraph Rd. City Pontiac Oak Park Auburn Hills Southfield Southfield County Oakland Oakland Oakland Oakland Oakland State Michigan MI MI MI MI Sale Date Dec-22 Dec-22 Jun-22 Apr-21 Sale Status Closed Closed Closed Closed Sale Price $13,300,000 $7,157,500 $6,000,000 $9,200,000 Other Adjustment $350,000 ––– Effective Sale Price $13,650,000 $7,157,500 $6,000,000 $9,200,000 Gross Building Area 425,970 290,448 128,859 103,125 190,084 Rentable Area 391,217 265,479 120,000 93,988 171,700 Year Built 1981 1972 2000 1984 1974 Price per SF of Rentable Area $51.42 $59.65 $63.84 $53.58 Transactional Adjustments Property Rights Leased Fee Leased Fee Leased Fee Leased Fee % Adjustment –––– Financing Terms Assumption Cash to seller Cash to seller Cash to seller % Adjustment -5%––– Conditions of Sale Arm's-length Arm's-length Arm's-length Arm's-length % Adjustment –––– Market Conditions 6/1/2023 Dec-22 Dec-22 Jun-22 Apr-21 Annual % Adjustment 0%–––-5% Cumulative Adjusted Price $48.85 $59.65 $63.84 $50.90 Property Adjustments Location –-10%–– Access/Exposure –––– Building Size –-10%-10%-10% Parking 5%5%5%5% Quality of Construction –––– Effective Age/Condition –––– Economic Characteristics –––– Net Property Adjustments ($)$2.44 -$8.95 -$3.19 -$2.55 Net Property Adjustments (%)5%-15%-5%-5% Final Adjusted Price $51.29 $50.70 $60.65 $48.36 Range of Adjusted Prices $48.36 - $60.65 Average $52.75 Indicated Value $50.00 Value Indication Prior to adjustment, the sales reflect a range of $51.42 - $63.84 per square foot. After adjustment, the range is $48.36 - $60.65 per square foot, with an average of $52.75 per square foot. Sales Comparison Approach 56 Ottawa Towers Property We consider the following to arrive at an indication of value: • Located in downtown Pontiac with excellent visibility. • The subject has direct access to the Phoenix Center parking garage which contains roughly 2,700 stalls/spaces. The garage is owner a ground lease which requires the owner of the Ottawa Towers to maintain and operate the garage. The garage requires a multimillion dollar upgrade to meet current market standards. • Oakland County as the primary occupant would have the added benefit of retaining and attracting tenants to the property as it would anchor this asset for the long-term. • Oakland County has a AAA bond rating from S&P which is described as extremely strong and the highest possible rating to secure. • The impact of remote working on future office demand. Based on the preceding analysis, the value indication by the sales comparison approach is as follows: Value Indication by Sales Comparison Indicated Value per SF $50.00 Subject Square Feet 391,217 Indicated Value $19,560,850 Adjustments Land Parcels (various)$710,000 Total Adjustments $710,000 Indicated Value $20,270,850 Rounded $20,300,000 Income Capitalization Approach 57 Ottawa Towers Property Income Capitalization Approach The income capitalization approach converts anticipated economic benefits of owning real property into a value estimate through capitalization. The steps taken to apply the income capitalization approach are: • Analyze the revenue potential of the property. • Consider appropriate allowances for vacancy, collection loss, and operating expenses. • Calculate net operating income by deducting vacancy, collection loss, and operating expenses from potential income. • Apply the most appropriate capitalization method, either direct capitalization or discounted cash flow analysis, or both, to convert anticipated net income to an indication of value. The two most common capitalization methods are direct capitalization and discounted cash flow analysis. In direct capitalization, a single year’s expected income is divided by an appropriate capitalization rate to arrive at a value indication. In discounted cash flow analysis, anticipated future net income streams and a future resale value are discounted to a present value at an appropriate yield rate. In this analysis, we use only direct capitalization because investors in this property type typically rely more on this method. Leased Status of Property A rent roll for the property is shown below, based on our review of the owner’s rent roll. Suite Tenant SF Lease Start Lease End Term (Mos.)Lease Type Income Type Contract Rent Contract Rent/SF/Yr Market Rent Rent Applied PGR Projected PGR/ SF Var.State of Michigan 67,332 4/1/2013 3/31/2024 132 Gross $/SF/Yr $1,043,646 $15.50 $13.50 Contract $1,043,646 $15.50 110 State of Michigan 5,700 7/1/2013 6/30/2023 120 Gross $/SF/Yr $79,800 $14.00 $13.50 Contract $79,800 $14.00 150 Hispanic ASD Services 3,000 6/15/2022 9/14/2025 39 Modified Gross $/SF/Yr $36,000 $12.00 $13.50 Contract $36,000 $12.00 410 DHS 13,517 9/1/2013 10/31/2023 122 Gross $/SF/Yr $189,238 $14.00 $13.50 Contract $189,238 $14.00 500 DHS 25,317 5/1/2017 10/31/2032 186 Gross $/SF/Yr $413,933 $16.35 $13.50 Contract $413,933 $16.35 704 E-Community Outreach 200 11/1/2022 12/31/2023 14 Gross $/SF/Yr $3,600 $18.00 $13.50 Contract $3,600 $18.00 720 Oakland Literacy 4,113 4/1/2023 9/30/2028 66 Modified Gross $/SF/Yr $24,678 $6.00 $13.50 Contract $24,678 $6.00 725 Gary Peters 800 8/12/2022 1/2/2027 53 Gross $/SF/Yr $16,680 $20.85 $13.50 Contract $16,680 $20.85 77 Vanstone Injury Law 350 2/1/2023 1/31/2024 12 Gross $/SF/Yr $4,200 $12.00 $13.50 Contract $4,200 $12.00 115A Vacant 400 Modified Gross $/SF/Yr $0 $13.50 Market $5,400 $13.50 600 Vacant 25,317 Modified Gross $/SF/Yr $0 $13.50 Market $341,780 $13.50 700 Vacant 19,504 Modified Gross $/SF/Yr $0 $13.50 Market $263,304 $13.50 700A Vacant 350 Modified Gross $/SF/Yr $0 $13.50 Market $4,725 $13.50 800 Vacant 25,000 Modified Gross $/SF/Yr $0 $13.50 Market $337,500 $13.50 800A Vacant 317 Modified Gross $/SF/Yr $0 $13.50 Market $4,280 $13.50 1 Oakland County 200,000 6/1/2023 5/30/2033 120 Modified Gross $/SF/Yr $2,700,000 $13.50 $13.50 Market $2,700,000 $13.50 Total/Average*391,217 $4,511,775 $14.08 $5,468,763 $13.98 Vacant SF 70,888 18% Leased SF 320,329 82% *Average contract rent is based on leased square feet. 4 Rent Roll As of the effective valuation date, the subject is 82% leased and occupied, which is considered stabilized. It should be noted that this valuation assumes that Oakland County is in occupancy of their space of 200,000 SF as of the date of value. We utilize a ten year term on this space. Income Capitalization Approach 58 Ottawa Towers Property The division of expense responsibilities between the owner and tenants is as follows: Subject Expense Structures Space Type Lease Type Owner Tenant Real Estate Taxes X Insurance X Utilities X Elec.Varies by tenant Payroll & Benefits X Repairs/Maintenance X Cleaning/Janitorial X Grounds X Security X General/Administrative X Management X Replacement Reserves X Modified Gross Office The suites occupied by State of Michigan related entities are on full-service, gross terms, which is a typical requirement for government agencies for budgetary purposes. The landlord implied that all non-governmental tenants going forward will be on modified gross terms which will require the tenant to reimburse for in-suite electric with base-year stops on operating expenses. Market Rent Analysis Contract rents typically establish income for leased space, while market rent is the basis for estimating income for current vacant space and future speculative re-leasing of space due to expired leases. To estimate market rent, we analyze comparable rentals most relevant to the subject in terms of location, property type, size, and transaction date. Comparables used in our analysis are summarized in the following table. Income Capitalization Approach 59 Ottawa Towers Property Comparable Details Address/Name:18000 W. 9 Mile Property Class:B Location:Southfield Occupancy Level:> 90% Building Type:Office Tower Expense Structure:¹Mod. Gross Building Size (SF):245,000 Rental Rate Range:¹$12-14/SF Yr. Blt./Renovated:1975 Comparison to Subj.:Similar Address/Name:Riker Building Property Class:B Location:Pontiac Occupancy Level:70% Building Type:Office Expense Structure:¹Full Service Building Size (SF):50,000 Rental Rate Range:¹$11-14/SF Yr. Blt./Renovated:1928, 1987 Comparison to Subj.:Inferior Address/Name:23077 Greenfield Property Class:B Location:Southfield Occupancy Level:71% Building Type:Office Bldg.Expense Structure:¹Mod. Gross Building Size (SF):290,000 Rental Rate Range:¹$12-15/SF Yr. Blt./Renovated:1971 Comparison to Subj.:Similar Address/Name:Crown Pointe Property Class:B Location:Oak Park Occupancy Level:88% Building Type:Office Bldg.Expense Structure:¹Mod. Gross Building Size (SF):265,000 Rental Rate Range:¹$12-14/SF Yr. Blt./Renovated:1972 Comparison to Subj.:Similar Address/Name:Nine Mile Crossing Property Class:B Location:Southfield Occupancy Level:93% Building Type:Office Tower Expense Structure:¹Full Service Building Size (SF):140,000 Rental Rate Range:¹$12-14/SF Yr. Blt./Renovated:1969 Comparison to Subj.:Similar ¹ Quoted terms are adjusted to modified gross terms whereas the tenant pays base rent plus in-suite electric. Income Capitalization Approach 60 Ottawa Towers Property Comparable Rentals Map Income Capitalization Approach 61 Ottawa Towers Property Market Rent Conclusion Based on the preceding analysis of comparable rentals, recent leases at the subject, and trends evident in the market, market lease terms for the subject are concluded as follows. Concluded Market Lease Terms Space Type SF Market Rent Measure Rent Escalations Lease Type Lease Term (Mos.) Free Rent (Mos.) TI/SF New TI/SF Renew Office 391,217 $13.50 $/SF/Yr Fixed Steps Modified Gross 60 2 $15.00 $7.00 The subject is concluded to have a market rate ranging from $12.00-$15.00/SF on modified gross term which would require the tenant to reimburse for in-suite electric. A specific rate will be dependent on the size of the space, desirability of the space, term, length, and amount of tenant improvements provided by the landlord. Therefore, we will utilize a typical rental rate of $13.50/SF. Furthermore, tenant improvement allowance and free rent are negotiable dependent on similar factors. Based upon current market trends, free rent of 2 months is concluded, TI allowance of $15.00/SF for new tenants, while a lower rate is concluded for renewal tenants. This market rent conclusion is applied to the Oakland County occupied space as outlined in this report, to allow for a proper income analysis of the property at stabilized occupancy. Stabilized Income and Expenses Potential Gross Rent Potential gross rent is based on contract rents from leases in place plus market rents for vacant space, as shown in the following table. Income is projected for the 12-month period following the effective date of the appraisal. Potential Gross Rent Space Type SF Annual $/SF/Yr $/SF/Yr Annual Annual $/SF/Yr Leased Space Office 320,329 $4,511,775 $14.08 $13.50 $4,324,442 104%$4,511,775 $14.08 Total Leased 320,329 $4,511,775 $14.08 $13.50 $4,324,442 104%$4,511,775 $14.08 Vacant Space Office 70,888 $956,988 $13.50 $13.50 $956,988 100%$956,988 $13.50 Total Vacant 70,888 $956,988 $13.50 $13.50 $956,988 100%$956,988 $13.50 Total Subject 391,217 $5,468,763 $13.98 $13.50 $5,281,430 104%$5,468,763 $13.98 1 Contract rent for leased space; vacant space at market. 2 Projected Rent is different from Potential Rent at Contract in cases in which market rent, rather than contract rent, is applied to some of the existing leased space. Please refer to the Rent Roll. Potential Rent at Contract (1)Potential Rent at Market Projected Rent (2) Contract as % of Market Income Capitalization Approach 62 Ottawa Towers Property Expense Reimbursements The leases that relate to the State of Michigan entities are on gross, full-service, terms, as the landlord will assume all operating expenses. The new leases executed, as well as all future lease with non- government agencies, will be on modified gross terms which will require the tenant to reimburse in- suite electric usage with base-year stops on operating expenses. We forecast that electric reimbursement will be $1.25/SF and this rate is only applied to the 200,000 SF of rentable area that relates to 31 E. Judson whereas Oakland County is the sole occupant. This implies a stabilized amount of $250,000. Vacancy & Collection Loss Allowance Stabilized vacancy and collection loss is estimated at 18.0%. This estimate considers the submarket vacancy rate, vacancy rates at competing properties, and the credit risk of the subject’s tenants. Expenses Operating expenses are estimated based on the operating history of the subject and expense data from comparable properties, as summarized in the following tables. Income Capitalization Approach 63 Ottawa Towers Property Operating History and Projections Trailing-12 4/30/23 Income Base Rent $1,834,910 $5,468,763 Reimbursement 28,463 250,000 Potential Gross Income*$1,863,373 $5,718,763 Vacancy & Collection Loss @ 18.0%-1,029,377 Effective Gross Income $1,863,373 $4,689,386 Expenses Real Estate Taxes $113,801 $145,971 Insurance 115,180 97,804 Utilities 473,117 782,434 Payroll & Benefits 246,220 254,291 Repairs/Maintenance 217,139 547,704 Cleaning/Janitorial 111,609 430,339 Grounds 31,324 97,804 Security 56,341 58,683 General/Administrative 47,058 78,243 Management 0 187,575 Replacement Reserves 0 97,804 Total Expenses $1,411,789 $2,778,653 Net Operating Income $451,584 $1,910,732 IRR Projection *IRR projected income is the total potential income attributable to the property before deduction of vacancy and collection loss. Historical income is the actual income that has been collected by the property owner. As it relates to the Phoenix Center parking garage, it is expected that the garage will generate additional revenue from auxiliary sources such as transient use, etc. Any revenue generated from these sources is expected to be fully offset by annual expenses to maintain and operate the garage, i.e., net neutral situation. As such, income and expenses related to the parking garage are not summarized in the above projections. Income Capitalization Approach 64 Ottawa Towers Property Expense Analysis per Square Foot Comp 1 Comp 2 Comp 3 Year Built 1982 1999 1988 SF 150,000 350,000 300,000 Prevailing Lease Type Varies Mod. Gross Mod. Gross Operating Data Type Actual Actual Actual Trailing-12 Year 2022 2022 2021 4/30/2023 Real Estate Taxes $3.87 $2.13 $2.01 $0.29 $0.37 Insurance $0.22 $0.16 $0.23 $0.29 $0.25 Utilities $3.41 $1.76 $2.56 $1.21 $2.00 Payroll & Benefits $0.35 $0.12 $1.16 $0.63 $0.65 Repairs/Maintenance $1.41 $1.04 $1.65 $0.56 $1.40 Cleaning/Janitorial $1.23 $0.85 $1.26 $0.29 $1.10 Grounds $0.15 $0.21 $0.49 $0.08 $0.25 Security $0.14 $0.31 $0.34 $0.14 $0.15 General/Administrative $0.18 $0.11 $0.51 $0.12 $0.20 Management $0.60 $0.41 $0.67 $0.00 $0.48 Replacement Reserves $0.00 $0.00 $0.00 $0.00 $0.25 Total $11.56 $7.10 $10.88 $3.61 $7.10 *Comp 1: Comp 2: Comp 3: Subject IRR Projection Office Bldg., Lansing, MI Comp Data* Historical & Projected Exp. 1981 391,217 Modified Gross Office Bldg., Southfield, MI Office Bldg., Troy, MI It should be noted that the expense comps indicate a range of $4.56/SF to $8.20/SF for operating expenses excluding real estate taxes, management, and replacement reserves, with the subject’s forecasted amount totaling $6.00/SF. Forecasted Expenses • RE Taxes –Estimated in the previous Real Estate Tax section; • Insurance – Our forecasted amount considers the subject’s trailing-12 figure which is supported by the expense comps; • Utilities – Our forecast is based on the expense comps and considers the subject is operating at stabilized occupancy; • Payroll - Our forecasted amount considers the subject’s trailing-12 figure which is supported by the expense comps; • Repairs/Maintenance – The subject’s age and condition are considered when concluding to an appropriate rate. Reliance is given to the expense comps; • Cleaning/Janitorial – Our forecast considers the subject is operating at stabilized occupancy; • Grounds – Our forecast considers the subject is operating at stabilized occupancy; Income Capitalization Approach 65 Ottawa Towers Property • Security – Our forecasted amount considers the subject’s trailing-12 figure which is supported by the expense comps; • General/Administrative – Our forecasted amount considers the subject’s trailing-12 figure which is supported by the expense comps; • Management – Forecasted at 4% of EGI; and • Replacement Reserves – Recent capital improvements, if any, are considered when selecting a rate. Forecasted at $0.25/SF. Capitalization Rate Selection A capitalization rate is used to convert net income into an indication of value. Selection of an appropriate capitalization rate considers the future income pattern of the property and investment risk associated with ownership. We consider the following data in selecting a capitalization rate for the subject. Capitalization Rate Comparables No.Property Name City Year Built Sale Date Rentable Area % Occup.Cap Rate 1 Office Portfolio Okemos 1993 - 1997 12/13/2022 91,197 91%9.00% 2 Office Portfolio Delta Township 1991 - 2001 10/19/2022 153,678 80%8.95% 3 Office Buildings Troy 1986, 1989 9/1/2022 454,419 90%8.84% 4 Novi Office Centre Novi 1986 4/5/2022 38,000 99%8.75% 5 Nottingham Office Plaza Farmington Hills 1987 2/15/2022 61,024 88%8.00% Indicated Cap Rate Range:8.00% - 9.00% Average (Mean) Cap Rate:8.71% Capitalization Rate Surveys – Office Properties IRR-ViewPoint National CBD Office IRR-ViewPoint National Suburban Office PwC 1Q-23 National CBD Office PwC 1Q-23 National Suburban Office ACLI 4Q-22 National Office Range 5.00% - 9.75%5.50% - 8.75%4.25% – 7.50%4.65% – 8.00%NA Average 7.00%7.18%5.78%6.24%6.03 Source: IRR-Viewpoint 2023; PwC Real Estate Investor Survey; American Council of Life Insurers Investment Income Capitalization Approach 66 Ottawa Towers Property Band of Investment Method Mortgage/Equity Assumptions Loan To Value Ratio 70% Interest Rate 6.50% Amortization (Years)25 Mortgage Constant 0.0810 Equity Ratio 30% Equity Dividend Rate 13.00% Weighted Average of Mortgage and Equity Requirements Mortgage Requirement 70%x 8.10%=5.67% Equity Requirement 30%x 13.00%=3.90% Indicated Capitalization Rate 9.57% Rounded 9.60% Capitalization Rate Conclusion To reach a capitalization rate conclusion, we consider each of the following investment risk factors to gauge its impact on the rate. The direction of each arrow in the following table indicates our judgment of an upward, downward, or neutral influence of each factor. 2Q-21 3Q-21 4Q-21 1Q-22 2Q-22 3Q-22 4Q-22 1Q-23 CBD 5.78 5.8 5.8 5.64 5.7 5.7 5.75 5.78 SUBURB 6.22 6.07 6.19 6.13 6.03 5.97 6 6.24 ACLI 5.64 4.97 5.05 6.01 5.25 5.42 6.03 4 4.5 5 5.5 6 6.5 7 Office Capitalization Rate Trends CBD -PwC Real Estate Investor Survey -National CBD Office Market SUBURB -PwC Real Estate Investor Survey -National Suburban Office Market ACLI -American Council of Life Insurers Investment Bulletin -Office Properties Income Capitalization Approach 67 Ottawa Towers Property Capitalization Rate Risk Factors Factor Issues Impact on Rate Income Characteristics Rollover risk, escalation pattern, above/below market rents, major tenant credit strength  Competitive Market Position Construction quality, market appeal, age/condition, functional utility  Location Market area demographics and life cycle trends; proximity issues; access and support services  Market Vacancy rates and trends; rental rate trends; supply and demand  Highest and Best Use Upside potential from redevelopment, adaptation, and/or expansion  Overall Impact  The following is considered when selecting an appropriate cap rate: • Located in downtown Pontiac with excellent visibility. • The parking garage requires a multimillion dollar upgrade to meet current market standards. • Oakland County as the primary occupant would have the added benefit of retaining and attracting tenants to the property as it would anchor this asset for the long-term. • Oakland County has a AAA bond rating from S&P which is described as extremely strong and the highest possible rating to secure. • The impact of remote working on future office demand. Based on current market conditions a capitalization rate of 9.50% is concluded for the subject; however, as mentioned the property owner will need to undertake a multimillion dollar project to upgrade the parking garage to current market standards. A budget of such a project was not available for the assignment. To consider the exposure to this expense, a premium of 50 basis points is added into the concluded cap rate of 9.50%, which produces an adjusted cap rate of 10.00%. Capitalization Rate Conclusion Method Capitalization Rate Indication Analysis of Comparable Sales 8.00% - 9.00% Band of Investment 9.60% Conclusion 10.00% Income Capitalization Approach 68 Ottawa Towers Property Direct Capitalization Analysis Net operating income is divided by the capitalization rate to indicate the stabilized value of the subject. Valuation of the subject by direct capitalization is shown in the following table. Direct Capitalization Analysis Annual $/SF Bldg. Income Potential Gross Rent $5,468,763 $13.98 Reimbursement $250,000 $0.64 Potential Gross Income $5,718,763 $14.62 Vacancy & Collection Loss 18.00%-$1,029,377 -$2.63 Effective Gross Income $4,689,386 $11.99 Expenses Real Estate Taxes $145,971 $0.37 Insurance $97,804 $0.25 Utilities $782,434 $2.00 Payroll & Benefits $254,291 $0.65 Repairs/Maintenance $547,704 $1.40 Cleaning/Janitorial $430,339 $1.10 Grounds $97,804 $0.25 Security $58,683 $0.15 General/Administrative $78,243 $0.20 Management 4.00%$187,575 $0.48 Replacement Reserves $97,804 $0.25 Total Expenses $2,778,653 $7.10 Net Operating Income $1,910,732 $4.88 Capitalization Rate 10.00% Indicated Value $19,107,325 $48.84 Adjustments Land Parcels (various)$710,000 $1.81 Stabilized Value Indication $19,817,325 $50.66 Rounded $19,800,000 $50.61 Reconciliation and Conclusion of Value 69 Ottawa Towers Property Reconciliation and Conclusion of Value The values indicated by the preceding analyses are as follows: Summary of Value Indications Cost Approach Not Used Sales Comparison Approach $20,300,000 Income Capitalization Approach $19,800,000 Reconciled $19,900,000 The income capitalization approach is given the greatest weight because it is the most reliable valuation method for the subject. The sales comparison approach is given less weight because it does not directly consider the income characteristics of the property. The cost approach is not applicable to the subject and is not used. Accordingly, our value opinion follows. Value Conclusion Value Type & Appraisal Premise Interest Appraised Date of Value Value Conclusion Market Value Leased Fee June 1, 2023 $19,900,000 Extraordinary Assumptions and Hypothetical Conditions 1.The property currently has substantial vacancy. This valuation assumes Oakland County absorbs all the vacant space within the property at a market rent rate, taking full occupancy on the date of value. 1.The valuation assumes that Oakland County is in occupancy as of the effective date of value. Further, this valuation assumes that the interior renovations necessary for occupancy as it relates to carpet, paint, etc., has been completed as of the effective date of value. The use of any extraordinary assumption or hypothetical condition may have affected the assignment results. The value conclusions are based on the following hypothetical conditions. A hypothetical condition is a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. The value conclusions are subject to the following extraordinary assumptions. An extraordinary assumption is an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions. The opinions of value expressed in this report are based on estimates and forecasts that are prospective in nature and subject to considerable risk and uncertainty. Events may occur that could cause the performance of the property to differ materially from the stated estimates, such as changes in the economy, interest rates, capitalization rates, financial strength of tenants, and behavior of investors, lenders, and consumers. Reconciliation and Conclusion of Value 70 Ottawa Towers Property Exposure Time Exposure time is the length of time the subject property would have been exposed for sale in the market had it sold on the effective valuation date at the concluded market value. Based on the concluded market value stated previously, the probable exposure time is 12 months. Marketing Period Marketing time is an estimate of the amount of time it might take to sell a property at the concluded market value immediately following the effective date of value. The subject’s marketing period is estimated at 12 months. Office Average Marketing Time (Months) IRR-ViewPoint National CBD Office IRR-ViewPoint National Suburban Office PwC 1Q-23 National CBD Office PwC 1Q-23 National Suburban Office Range 0.00 - 18.00 0.00 - 18.00 3 – 12 1 – 15 Average 8.61 8.70 8.1 8.4 Source: PwC Real Estate Investor Survey Certification 71 Ottawa Towers Property Certification We certify that, to the best of our knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions. 3. We have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. 4. We 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 the agreement to perform this assignment. 5. We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 6. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. 7. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 8. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice as well as applicable state appraisal regulations. 9. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. 10. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 11. Constantino G. Naoum has made a personal inspection of the property that is the subject of this report. Anthony Sanna, MAI, CRE has personally inspected the subject. 12. No one provided significant real property appraisal assistance to the persons signing this certification. 13. We have experience in appraising properties similar to the subject and are in compliance with the Competency Rule of USPAP. 14. As of the date of this report, Anthony Sanna, MAI, CRE, has completed the continuing education program for Designated Members of the Appraisal Institute. Certification 72 Ottawa Towers Property 15. In Michigan, appraisers are required to be licensed/certified and are regulated by the Michigan Department of Licensing and Regulatory Affairs, 611 West Ottawa, P. O. Box 30018, Lansing, Michigan, 48909. Constantino G. Naoum Michigan Certified General Real Estate Appraiser #1205068135 Anthony Sanna, MAI, CRE Michigan Certified General Real Estate Appraiser #1205001324 Assumptions and Limiting Conditions 73 Ottawa Towers Property Assumptions and Limiting Conditions This appraisal and any other work product related to this engagement are limited by the following standard assumptions, except as otherwise noted in the report: 1. The title is marketable and free and clear of all liens, encumbrances, encroachments, easements and restrictions. The property is under responsible ownership and competent management and is available for its highest and best use. 2. There are no existing judgments or pending or threatened litigation that could affect the value of the property. 3. There are no hidden or undisclosed conditions of the land or of the improvements that would render the property more or less valuable. Furthermore, there is no asbestos in the property. 4. The property is in compliance with all applicable building, environmental, zoning, and other federal, state and local laws, regulations and codes. 5. The information furnished by others is believed to be reliable, but no warranty is given for its accuracy. This appraisal and any other work product related to this engagement are subject to the following limiting conditions, except as otherwise noted in the report: 1. An appraisal is inherently subjective and represents our opinion as to the value of the property appraised. 2. The conclusions stated in our appraisal apply only as of the effective date of the appraisal, and no representation is made as to the effect of subsequent events. 3. No changes in any federal, state or local laws, regulations or codes (including, without limitation, the Internal Revenue Code) are anticipated. 4. No environmental impact studies were either requested or made in conjunction with this appraisal, and we reserve the right to revise or rescind any of the value opinions based upon any subsequent environmental impact studies. If any environmental impact statement is required by law, the appraisal assumes that such statement will be favorable and will be approved by the appropriate regulatory bodies. 5. Unless otherwise agreed to in writing, we are not required to give testimony, respond to any subpoena or attend any court, governmental or other hearing with reference to the property without compensation relative to such additional employment. 6. We have made no survey of the property and assume no responsibility in connection with such matters. Any sketch or survey of the property included in this report is for illustrative purposes only and should not be considered to be scaled accurately for size. The appraisal covers the property as described in this report, and the areas and dimensions set forth are assumed to be correct. Assumptions and Limiting Conditions 74 Ottawa Towers Property 7. No opinion is expressed as to the value of subsurface oil, gas or mineral rights, if any, and we have assumed that the property is not subject to surface entry for the exploration or removal of such materials, unless otherwise noted in our appraisal. 8. We accept no responsibility for considerations requiring expertise in other fields. Such considerations include, but are not limited to, legal descriptions and other legal matters such as legal title, geologic considerations such as soils and seismic stability; and civil, mechanical, electrical, structural and other engineering and environmental matters. Such considerations may also include determinations of compliance with zoning and other federal, state, and local laws, regulations and codes. 9. The distribution of the total valuation in the report between land and improvements applies only under the reported highest and best use of the property. The allocations of value for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used. The appraisal report shall be considered only in its entirety. No part of the appraisal report shall be utilized separately or out of context. 10. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraisers, or any reference to the Appraisal Institute) shall be disseminated through advertising media, public relations media, news media or any other means of communication (including without limitation prospectuses, private offering memoranda and other offering material provided to prospective investors) without the prior written consent of the persons signing the report. 11. Information, estimates and opinions contained in the report and obtained from third-party sources are assumed to be reliable and have not been independently verified. 12. Any income and expense estimates contained in the appraisal report are used only for the purpose of estimating value and do not constitute predictions of future operating results. 13. If the property is subject to one or more leases, any estimate of residual value contained in the appraisal may be particularly affected by significant changes in the condition of the economy, of the real estate industry, or of the appraised property at the time these leases expire or otherwise terminate. 14. Unless otherwise stated in the report, no consideration has been given to personal property located on the premises or to the cost of moving or relocating such personal property; only the real property has been considered. 15. The current purchasing power of the dollar is the basis for the values stated in the appraisal; we have assumed that no extreme fluctuations in economic cycles will occur. 16. The values found herein are subject to these and to any other assumptions or conditions set forth in the body of this report but which may have been omitted from this list of Assumptions and Limiting Conditions. 17. The analyses contained in the report necessarily incorporate numerous estimates and assumptions regarding property performance, general and local business and economic conditions, the absence of material changes in the competitive environment and other matters. Some estimates or assumptions, however, inevitably will not materialize, and unanticipated events and circumstances may occur; therefore, actual results achieved during Assumptions and Limiting Conditions 75 Ottawa Towers Property the period covered by our analysis will vary from our estimates, and the variations may be material. 18. The Americans with Disabilities Act (ADA) became effective January 26, 1992. We have not made a specific survey or analysis of the property to determine whether the physical aspects of the improvements meet the ADA accessibility guidelines. We claim no expertise in ADA issues, and render no opinion regarding compliance of the subject with ADA regulations. Inasmuch as compliance matches each owner’s financial ability with the cost to cure the non- conforming physical characteristics of a property, a specific study of both the owner’s financial ability and the cost to cure any deficiencies would be needed for the Department of Justice to determine compliance. 19. The appraisal report is prepared for the exclusive benefit of you, your subsidiaries and/or affiliates. It may not be used or relied upon by any other party. All parties who use or rely upon any information in the report without our written consent do so at their own risk. 20. No studies have been provided to us indicating the presence or absence of hazardous materials on the subject property or in the improvements, and our valuation is predicated upon the assumption that the subject property is free and clear of any environment hazards including, without limitation, hazardous wastes, toxic substances and mold. No representations or warranties are made regarding the environmental condition of the subject property. IRR - Detroit, Integra Realty Resources, Inc., and their respective officers, owners, managers, directors, agents, subcontractors or employees (the “Integra Parties”), shall not be responsible for any such environmental conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because we are not experts in the field of environmental conditions, the appraisal report cannot be considered as an environmental assessment of the subject property. 21. The persons signing the report may have reviewed available flood maps and may have noted in the appraisal report whether the subject property is located in an identified Special Flood Hazard Area. However, we are not qualified to detect such areas and therefore do not guarantee such determinations. The presence of flood plain areas and/or wetlands may affect the value of the property, and the value conclusion is predicated on the assumption that wetlands are non-existent or minimal. 22. We are not a building or environmental inspector. The Integra Parties do not guarantee that the subject property is free of defects or environmental problems. Mold may be present in the subject property and a professional inspection is recommended. 23. The appraisal report and value conclusions for an appraisal assume the satisfactory completion of construction, repairs or alterations in a workmanlike manner. 24. IRR - Detroit is an independently owned and operated company. The parties hereto agree that Integra shall not be liable for any claim arising out of or relating to any appraisal report or any information or opinions contained therein as such appraisal report is the sole and exclusive responsibility of IRR - Detroit. In addition, it is expressly agreed that in any action which may be brought against the Integra Parties arising out of, relating to, or in any way pertaining to the engagement letter, the appraisal reports or any related work product, the Integra Parties shall not be responsible or liable for any incidental or consequential damages or losses, unless Assumptions and Limiting Conditions 76 Ottawa Towers Property the appraisal was fraudulent or prepared with intentional misconduct. It is further expressly agreed that the collective liability of the Integra Parties in any such action shall not exceed the fees paid for the preparation of the assignment (unless the appraisal was fraudulent or prepared with intentional misconduct). It is expressly agreed that the fees charged herein are in reliance upon the foregoing limitations of liability. 25. IRR - Detroit is an independently owned and operated company, which has prepared the appraisal for the specific intended use stated elsewhere in the report. The use of the appraisal report by anyone other than the Client is prohibited except as otherwise provided. Accordingly, the appraisal report is addressed to and shall be solely for the Client’s use and benefit unless we provide our prior written consent. We expressly reserve the unrestricted right to withhold our consent to your disclosure of the appraisal report or any other work product related to the engagement (or any part thereof including, without limitation, conclusions of value and our identity), to any third parties. Stated again for clarification, unless our prior written consent is obtained, no third party may rely on the appraisal report (even if their reliance was foreseeable). 26. The conclusions of this report are estimates based on known current trends and reasonably foreseeable future occurrences. These estimates are based partly on property information, data obtained in public records, interviews, existing trends, buyer-seller decision criteria in the current market, and research conducted by third parties, and such data are not always completely reliable. The Integra Parties are not responsible for these and other future occurrences that could not have reasonably been foreseen on the effective date of this assignment. Furthermore, it is inevitable that some assumptions will not materialize and that unanticipated events may occur that will likely affect actual performance. While we are of the opinion that our findings are reasonable based on current market conditions, we do not represent that these estimates will actually be achieved, as they are subject to considerable risk and uncertainty. Moreover, we assume competent and effective management and marketing for the duration of the projected holding period of this property. 27. All prospective value opinions presented in this report are estimates and forecasts which are prospective in nature and are subject to considerable risk and uncertainty. In addition to the contingencies noted in the preceding paragraph, several events may occur that could substantially alter the outcome of our estimates such as, but not limited to changes in the economy, interest rates, and capitalization rates, behavior of consumers, investors and lenders, fire and other physical destruction, changes in title or conveyances of easements and deed restrictions, etc. It is assumed that conditions reasonably foreseeable at the present time are consistent or similar with the future. Assumptions and Limiting Conditions 77 Ottawa Towers Property 28. The appraisal is also subject to the following: Extraordinary Assumptions and Hypothetical Conditions 1.The property currently has substantial vacancy. This valuation assumes Oakland County absorbs all the vacant space within the property at a market rent rate, taking full occupancy on the date of value. 1.The valuation assumes that Oakland County is in occupancy as of the effective date of value. Further, this valuation assumes that the interior renovations necessary for occupancy as it relates to carpet, paint, etc., has been completed as of the effective date of value. The use of any extraordinary assumption or hypothetical condition may have affected the assignment results. The value conclusions are based on the following hypothetical conditions. A hypothetical condition is a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. The value conclusions are subject to the following extraordinary assumptions. An extraordinary assumption is an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions. Addenda Ottawa Towers Property Addendum A Appraiser Qualifications Constantino G. Naoum Integra Realty Resources - Detroit irr.com T 248.540.0040 Ext. 102 F 248.540.8239 400 West Maple Road Suite 100 Birmingham, MI 48009 Experience Mr. Naoum, Senior Director, is a Certified General Real Estate Appraiser who has been actively involved with appraisal and advisory services since 1995. Mr. Naoum has extensive knowledge in a number of commercial property types including land development, manufactured housing communities, office buildings, medical office buildings, golf courses, single-and multi-tenant retail centers, multifamily and vacant land parcels. Mr. Naoum is highly proficient at Argus and has extensive experience working on very large multi-tenant office buildings with Life Insurance Companies, Conduits, and Conventional Lenders. Mr. Naoum also has extensive experience in litigation support including rezoning cases, tax appeals, divorce proceedings, partnership disputes, and right-of-way assignments. Professional Activities & Affiliations Appraisal Institute: Associate Member Licenses Michigan, Certified General Real Estate Appraiser, 1205068135, Expires July 2025 Education Bachelor of Science in Business Administration, Major Finance Masters of Business Administration, Major Finance, Wayne State University, Detroit, Michigan Successfully completed numerous real estate related courses and seminars sponsored by the Appraisal Institute, including: - Real Estate Appraisal Principles - Real Estate Appraisal Procedures - Basic Income Capitalization - General Applications - USPAP A & 420 USPAP B - Advanced Income Capitalization - Highest and Best Use - Advanced Sales Comparison & Cost Approaches dnaoum@irr.com - 248.979.9690 Anthony Sanna, MAI, CRE Integra Realty Resources - Detroit irr.com T 248.540.0040 Ext. 107 F 248.540.8239 400 West Maple Road Suite 100 Birmingham, MI 48009 Experience Mr. Sanna, Executive Director has actively counseled and advised clients on issues relating to the sale, leasing, valuation, management, and development of commercial real estate assets since 1989. Mr. Sanna served as the Managing Director of IRR Detroit from 2003-2018. He has a diversified background in real estate with primary emphasis in the areas of valuation for investment property, institutional assets, portfolio asset management and complex real estate issues. Conversely, Mr. Sanna continually manages a re-occurring volume of traditional mortgage loan appraisal work on all varieties of properties, large and small, focusing on core real estate assets including hotel, office, industrial, retail, and multifamily properties. Mr. Sanna has extensive consulting and valuation experience relating to corporate and private clients on an array of issues pertaining to estate and property trust matters, partnership disputes, air rights, partial and fractional interests, contract disputes, and mediation/arbitration disputes. Mr. Sanna’s experience in these matters provides clients with a well-rounded framework for valuation and consulting solutions. Professional Activities & Affiliations Appraisal Institute, Member (MAI) Counselor of Real Estate (CRE) Board of Director: Integra Realty Resources - 2005-2008; 2012-2017 and 2019-Current Board of Director: Commercial Board of Real Estate - Michigan Chapter Licenses Michigan, Certified General Real Estate Appraiser, 1205001324, Expires July 2025 Education Bachelor of Science (Business Administration) Wayne State University Appraisal Institute Courses: - Principals of Real Estate Appraisal - Procedures of Real Estate Appraisal - Uniform Standards of Professional Practice - Basic Income Capitalization - Advanced Income Capitalization - Report Writing - Advanced Applications/Case Studies Qualified Before Courts & Administrative Bodies Qualified expert witness before the Michigan Tax Tribunal, various Circuit Courts, planning boards, commissioner hearings and County Tax Boards. asanna@irr.com - 248.979.9663 About IRR Integra Realty Resources, Inc. (IRR) provides world-class commercial real estate valuation, counseling, and advisory services. Routinely ranked among leading property valuation and consulting firms, we are now the largest independent firm in our industry in the United States, with local offices coast to coast and in the Caribbean. IRR offices are led by MAI-designated Senior Managing Directors, industry leaders who have over 25 years, on average, of commercial real estate experience in their local markets. This experience, coupled with our understanding of how national trends affect the local markets, empowers our clients with the unique knowledge, access, and historical perspective they need to make the most informed decisions. Many of the nation's top financial institutions, developers, corporations, law firms, and government agencies rely on our professional real estate opinions to best understand the value, use, and feasibility of real estate in their market. Local Expertise...Nationally! irr.com Addenda Ottawa Towers Property Addendum B IRR Quality Assurance Survey Addenda Ottawa Towers Property IRR Quality Assurance Survey We welcome your feedback! At IRR, providing a quality work product and delivering on time is what we strive to accomplish. Our local offices are determined to meet your expectations. Please reach out to your local office contact so they can resolve any issues. Integra Quality Control Team Integra does have a Quality Control Team that responds to escalated concerns related to a specific assignment as well as general concerns that are unrelated to any specific assignment. We also enjoy hearing from you when we exceed expectations! You can communicate with this team by clicking o n the link below. If you would like a follow up call, please provide your contact information and a member of this Quality Control Team will call contact you. Link to the IRR Quality Assurance Survey: quality.irr.com Addenda Ottawa Towers Property Addendum C Financials and Property Information Rent Roll – 51111 Woodward Municipal Field Records / Legal Descriptions Addenda Ottawa Towers Property Unit(s) Lease Lease Type Area Lease From Lease To Term Annual Annual Rent Rent Per Area 100, 200, 300, 400 DEPARTMENT OF HUMAN SERVICES Office Gross 67,322.00 4/1/2013 3/31/2024 132.00 1,043,490.96 15.50 110 DEPARTMENT OF LICENSING & REGULATION Retail Gross 5,700.00 7/1/2013 6/30/2023 120.00 79,800.00 14.00 150 HISPANIC ASD SERVICES OF MICHIGAN LLC Office Net 3,000.00 6/15/2022 9/14/2025 39.00 36,000.00 12.00 410 DEPARTMENT OF HUMAN SERVICES Office Gross 13,517.00 9/1/2013 10/31/2023 122.00 189,237.96 14.00 500 DEPARTMENT OF HUMAN SERVICES Office Gross 25,317.00 5/1/2017 10/31/2032 186.00 413,932.92 16.35 704A6 E-COMMUNITY OUTREACH SERVICES License Agreement 200.00 11/1/2022 0.00 3,600.00 18.00 720 OAKLAND LITERACY COUNCIL Office Gross 4,113.00 4/1/2023 9/30/2028 66.00 24,678.00 6.00 725 HONORABLE SENATOR GARY PETERS Office Gross 800.00 8/12/2022 1/2/2027 53.00 16,676.28 20.85 775 VANSTONE INJURY LAW, PLLC License Agreement 350.00 2/1/2023 1/31/2024 12.00 4,200.00 12.00 115A VACANT 400.00 0.00 0.00 0.00 600 VACANT 25,317.00 0.00 0.00 0.00 700 VACANT 19,504.00 0.00 0.00 0.00 700A VACANT 350.00 0.00 0.00 0.00 800 VACANT 25,000.00 0.00 0.00 0.00 800A VACANT 317.00 0.00 0.00 0.00 191,207.00 1,811,616.12 9.47 Rent Roll Property: 5111wood From Date: 05/31/2023 By Property Addenda Ottawa Towers Property Addenda Ottawa Towers Property Addenda Ottawa Towers Property Addenda Ottawa Towers Property Addenda Ottawa Towers Property Addenda Ottawa Towers Property Addenda Ottawa Towers Property Addenda Ottawa Towers Property Addenda Ottawa Towers Property Addenda Ottawa Towers Property Addenda Ottawa Towers Property Addenda Ottawa Towers Property Addenda Ottawa Towers Property Addenda Ottawa Towers Property Addenda Ottawa Towers Property Addenda Ottawa Towers Property Addenda Ottawa Towers Property Addenda Ottawa Towers Property Addendum D Comparable Data Addenda Ottawa Towers Property Land Sales Land Sale Profile Sale No. 1 Location & Property Identification Vacant Land Property Name: Sub-Property Type: Commercial, Industrial 4401 E. Eight Mile Rd. Address: Warren, MI 48091 City/State/Zip: Macomb County: Suburban Market Orientation: NEC 8 Mile & Sunset Avenue, E. of Ryan Road Property Location: IRR Event ID: 2950310 Sale Information $625,000 Sale Price: $625,000 Effective Sale Price: 08/15/2022 Sale Date: Sale Status: Closed $/Acre(Gross): $241,873 $/Land SF(Gross): $5.55 $/Acre(Usable): $241,873 $/Land SF(Usable): $5.55 Grantor/Seller: Sundus Hanna & Michele Aboo Grantee/Buyer: Gleaners Community Food Bank Property Rights: Fee Simple Financing: Cash to seller Conditions of Sale: Arm's-length Verified By: Constantino G. Naoum Verification Date: 12/05/2022 Confirmation Source: Paul Reschke-Spartan Real Estate - 248-515-8225 Verification Type: Confirmed-Seller Broker Improvement and Site Data MSA: Detroit-Warren-Dearborn, MI 12-13-32-357-014, -013, -012, -011, -009 Legal/Tax/Parcel ID: 2.58/2.58 Acres(Usable/Gross): 112,559/112,559 Land-SF(Usable/Gross): Usable/Gross Ratio: 1.00 Shape: Irregular Topography: Level Frontage Feet: 331 Frontage Desc.: 8 Mile Road Zoning Code: M-1 Zoning Desc.: Light Industrial Utilities Desc.: All Available Source of Land Info.: Public Records Comments The planning department did not have any plan submissions or zoning change requests from the Gleaners Food Bank (as of Dec-22). Gleaners Food Bank utilizes light industrial buildings as distributions centers to collect food donations and distribute them from their facilities to neighboring agencies or individuals. Vacant land consisting of 5 parcels with different underlying zoning. Three parcels are zoned for light Industrial, one for single-family residential and parking, and one for single-family residential. The parcel that contains the entire 8 Mile Road frontage is zoned industrial. Vacant Land Land Sale Profile Sale No. 2 Location & Property Identification Dollar General Land Property Name: Sub-Property Type: Commercial, Retail 450 E. Walton Blvd. Address: Pontiac, MI 48340 City/State/Zip: Oakland County: Suburban Market Orientation: S/S Walton, W. of Joslyn Property Location: IRR Event ID: 3015712 Sale Information $265,000 Sale Price: $265,000 Effective Sale Price: 04/11/2022 Sale Date: Sale Status: Closed $/SF GBA: $24.41 $/SF NRA: $24.41 $/Acre(Gross): $180,272 $/Land SF(Gross): $4.14 $/Acre(Usable): $180,272 $/Land SF(Usable): $4.14 Property Rights: Fee Simple Financing: Cash to seller Conditions of Sale: Arm's-length Document Type: Warranty Deed Recording No.: Liber 57715, Page 068 Verified By: Constantino G. Naoum Verification Date: 06/05/2023 Verification Type: Secondary Verification Improvement and Site Data MSA: Detroit-Warren-Dearborn, MI 14-16-126-009 Legal/Tax/Parcel ID: GBA-SF: 10,857 NRA-SF: 10,857 1.47/1.47 Acres(Usable/Gross): 64,033/64,033 Land-SF(Usable/Gross): Usable/Gross Ratio: 1.00 Shape: Rectangular Topography: Level Frontage Feet: 276 Frontage Desc.: Walton Bldg. to Land Ratio FAR: 0.17 Zoning Code: C-3 Zoning Desc.: Corridor Commercial Utilities Desc.: All Available Source of Land Info.: Public Records Comments Verified via municipal records. The property was improved with a Dollar General store. Dollar General Land Land Sale Profile Sale No. 3 Location & Property Identification Vacant Land Property Name: Sub-Property Type: Commercial, Retail 1272 Baldwin Ave. Address: Pontiac, MI 48340 City/State/Zip: Oakland County: Suburban Market Orientation: SEC Baldwin & Yale, S. of Walton Property Location: IRR Event ID: 3015730 Sale Information $60,000 Sale Price: $60,000 Effective Sale Price: 03/15/2022 Sale Date: Sale Status: Closed $/Acre(Gross): $150,000 $/Land SF(Gross): $3.44 $/Acre(Usable): $150,000 $/Land SF(Usable): $3.44 Grantor/Seller: Construction Management Grantee/Buyer: Mid-Michigan Energy Property Rights: Fee Simple Financing: Cash to seller Conditions of Sale: Arm's-length Document Type: Warranty Deed Recording No.: Liber 57685, Page 0535 Verified By: Constantino G. Naoum Verification Date: 06/05/2023 Verification Type: Secondary Verification Improvement and Site Data 14-17-253-039 Legal/Tax/Parcel ID: 0.40/0.40 Acres(Usable/Gross): 17,424/17,424 Land-SF(Usable/Gross): Usable/Gross Ratio: 1.00 Shape: Rectangular Topography: Level Corner Lot: Yes Frontage Feet: 145 Frontage Desc.: Baldwin; 120' on Yale Zoning Code: C-1 Zoning Desc.: Local Business Utilities Desc.: All Available Source of Land Info.: Public Records Vacant Land Land Sale Profile Sale No. 4 Location & Property Identification Vacant Land Property Name: Sub-Property Type: Commercial, Retail 3111 Centerpoint Pky. Address: Pontiac, MI 48341 City/State/Zip: Oakland County: Suburban Market Orientation: W. of Opdyke Property Location: IRR Event ID: 3015723 Sale Information $775,000 Sale Price: $775,000 Effective Sale Price: 08/10/2021 Sale Date: Sale Status: Closed $/Acre(Gross): $258,333 $/Land SF(Gross): $5.93 $/Acre(Usable): $258,333 $/Land SF(Usable): $5.93 Grantor/Seller: Centerpoint Associates Grantee/Buyer: LPP Centerpoint Property Rights: Fee Simple Financing: Cash to seller Conditions of Sale: Arm's-length Verified By: Constantino G. Naoum Verification Date: 06/05/2023 Verification Type: Secondary Verification Improvement and Site Data 19-03-427-007 Legal/Tax/Parcel ID: 3.00/3.00 Acres(Usable/Gross): 130,680/130,680 Land-SF(Usable/Gross): Usable/Gross Ratio: 1.00 Shape: Very Irregular Topography: Level Corner Lot: No Frontage Feet: 706 Frontage Desc.: Centerpoint Parkway Zoning Code: C-4 Zoning Desc.: Suburban Business Utilities Desc.: All Available Source of Land Info.: Public Records Comments Verified via municipal records. Improved with a storage facility after the sale contain 1,164 units and 114,165 SF. Vacant Land Addenda Ottawa Towers Property Improved Sales Office Sale Profile Sale No. 1 Location & Property Identification Crown Pointe Property Name: Sub-Property Type: General Purpose 25900 Greenfield Rd. Address: Oak Park, MI 48237 City/State/Zip: Oakland County: Submarket: Royal Oak-Oak Park Suburban Market Orientation: E/S of Greenfield Rd., S/S of Lincoln Rd. Property Location: IRR Event ID: 2968823 Sale Information $13,300,000 Sale Price: $13,650,000 Effective Sale Price: 12/30/2022 Sale Date: Sale Status: Closed $/SF GBA: $47.00 $/SF NRA: $51.42 Grantor/Seller: Oak Park Crowne Pointe Grantee/Buyer: Primestar Asset Property Rights: Leased Fee % of Interest Conveyed: 100.00 Financing: Assumption Conditions of Sale: Arm's-length Verified By: Constantino G. Naoum Verification Date: 01/30/2023 Confirmation Source: Colliers - 248-226-1660 Verification Type: Confirmed-Seller Broker Sale Analysis Other Adjustment: $350,000 Adjustment Comments: Ten-X auction fee (3%) Sale Price Includes FF&E? No Occupancy Occupancy Type Before Sale: Multi-Tenant Occupancy Type After Sale: Multi-Tenant Occupancy at Time of Sale: 85.00% Improvement and Site Data MSA: Detroit-Warren-Livonia, MI Metropolitan Statistical Area 52-25-19-301-009 Legal/Tax/Parcel ID: GBA-SF: 290,448 NRA-SF: 265,479 8.92/8.92 Acres(Usable/Gross): 388,555/388,555 Land-SF(Usable/Gross): Usable/Gross Ratio: 1.00 Year Built: 1972 Most Recent Renovation: 1997-2000, 2012-2017 M&S Class: B Construction Quality: Good Improvements Cond.: Average Construction Desc.: Reinforced concrete frame No. of Buildings/Stories: 1/6 Anchor 1: Visiting Nurses Association Anchor 2: Measurecomp Total Parking Spaces: 798 Park. Ratio 1000 SF GLA: 3.01 No. Surface Spaces: 798 Park. Ratio 1000 SF GBA: 2.75 Yes Elevators/Count: Shape: Irregular Crown Pointe Office Sale Profile Sale No. 1 Improvement and Site Data (Cont'd) Topography: Level Vegetation: Minimal Corner Lot: Yes Frontage Feet: 826 Frontage Desc.: 334ft Greenfield, 492ft Lincoln Frontage Type: 2 way, 3 lanes each way Bldg. to Land Ratio FAR: 0.75 Zoning Code: O Zoning Desc.: Office District Flood Zone: Outside of 500-year floodplain Flood Zone Designation: X Utilities: Electricity, Water Public, Sewer, Gas, Telephone Utilities Desc.: All available Other Bldg. Phy. Info. Source: Source of Land Info.: Public Records Comments Property listed for sale on the auction site Ten-X. Sale included an assumption of debt. Rental rates are estimated to range from around $12 to $15/SF on modified gross terms (gross plus electric). Listing broker indicated property was well-maintained at time of sale. Office building with frontage on Greenfield Rd. and Lincoln Ave. Property has a number of amenities including sundry shop, restaurant and conference facility. Crown Pointe Office Sale Profile Sale No. 2 Location & Property Identification Auburn Hills Corporate Center Property Name: Sub-Property Type: General Purpose 900 N. Squirrel Rd. Address: Auburn Hills, MI 48326 City/State/Zip: Oakland County: Submarket: North Oakland Suburban Market Orientation: E/S Squirrel Road, N. of M-59 Property Location: IRR Event ID: 2968770 Sale Information $7,157,500 Sale Price: $7,157,500 Effective Sale Price: 12/21/2022 Sale Date: Sale Status: Closed $/SF GBA: $55.55 $/SF NRA: $59.65 Grantor/Seller: Bridge Investment Group Grantee/Buyer: Woodside Capital Partners Property Rights: Leased Fee Financing: Cash to seller Conditions of Sale: Arm's-length Verified By: Constantino G. Naoum Verification Date: 01/30/2023 Confirmation Source: Barry Swatsenbarg - Colliers - 248-2 26-1660 Verification Type: Confirmed-Seller Broker Occupancy Occupancy Type Before Sale: Multi-Tenant Occupancy Type After Sale: Multi-Tenant Occupancy at Time of Sale: 38.00% Improvement and Site Data 14-24-476-005 Legal/Tax/Parcel ID: GBA-SF: 128,859 NRA-SF: 120,000 7.24/7.24 Acres(Usable/Gross): 315,374/315,374 Land-SF(Usable/Gross): Usable/Gross Ratio: 1.00 Year Built: 2000 Property Class: A- Construction Quality: Good Improvements Cond.: Good Exterior Walls: Brick No. of Buildings/Stories: 1/3 Ceiling Height Maximum: 10.00 Total Parking Spaces: 546 Park. Ratio 1000 SF GLA: 4.55 No. Surface Spaces: 546 Park. Ratio 1000 SF GBA: 4.24 Yes/4 Elevators/Count: Fire Sprinkler Type: Yes Shape: Irregular Topography: Level Vegetation: Minimal Frontage Feet: 789 Frontage Desc.: Squirrel Frontage Type: 2 way, 3 lanes each way Bldg. to Land Ratio FAR: 0.41 Zoning Code: T&R Zoning Desc.: Technology & Research Utilities Desc.: All Available Auburn Hills Corporate Center Office Sale Profile Sale No. 2 Improvement and Site Data (Cont'd) Public Records Bldg. Phy. Info. Source: Source of Land Info.: Public Records Comments The property had a physical occupancy of 78% at the time of sale however the biggest tenant who occupies 40% of the building, Dassault, is expected to vacate their space by the end of 2023, implying a potential occupancy of 38% for the asset. The buyer based the purchase on upside potential of the asset versus in-place revenue. The listing broker indicated that the building was well maintained by the seller and contained updated common areas. Property was listed for sale on Ten-X, an auction site Ten-X. Listing broker felt the price secured was representative of market value, i.e., no discount. Amenities include an atrium, free wi-fi, outdoor seating, food services. Auburn Hills Corporate Center Office Sale Profile Sale No. 3 Location & Property Identification Lockdale Business Center Property Name: Sub-Property Type: General Purpose 24725 W. Twelve Mile Rd. Address: Southfield, MI 48034 City/State/Zip: Oakland County: Submarket: North Southfield Suburban Market Orientation: S/S 12 Mile, W. of Telegraph Rd. Property Location: IRR Event ID: 2818325 Sale Information $6,000,000 Sale Price: $6,000,000 Effective Sale Price: 06/10/2022 Sale Date: Sale Status: Closed $/SF GBA: $58.18 $/SF NRA: $63.84 Grantor/Seller: JKF Property Grantee/Buyer: Symmetry Property Property Rights: Leased Fee Financing: Cash to seller Terms of Sale Comments: Arm's Length Verified By: Constantino G. Naoum Verification Date: 05/27/2022 Confirmation Source: Symmetry Property Verification Type: Confirmed-Buyer Occupancy Occupancy Type Before Sale: Multi-Tenant Occupancy at Time of Sale: 47.00% Improvement and Site Data MSA: Detroit-Warren-Dearborn, MI 24-17-201-063 Legal/Tax/Parcel ID: GBA-SF: 103,125 NRA-SF: 93,988 5.63/5.63 Acres(Usable/Gross): 245,379/245,379 Land-SF(Usable/Gross): Usable/Gross Ratio: 1.00 Year Built: 1984 Most Recent Renovation: 2010s Property Class: B M&S Class: B Construction Quality: Average Improvements Cond.: Average Exterior Walls: Brick No. of Buildings/Stories: 2/3 Total Parking Spaces: 364 Park. Ratio 1000 SF GLA: 3.87 Park. Ratio 1000 SF GBA: 3.53 Yes/2 Elevators/Count: Fire Sprinkler Type: Wet Air-Conditioning Type: Roof Central Mounted Ballasted Roof,Heating,AC Comm.: Shape: Irregular Topography: Level Corner Lot: Yes Frontage Feet: 200 Frontage Desc.: 12 Mile Road; Lockdale Street - 838' Bldg. to Land Ratio FAR: 0.42 Zoning Code: OS Zoning Desc.: Office Service Flood Plain: No Lockdale Business Center Office Sale Profile Sale No. 3 Improvement and Site Data (Cont'd) Flood Zone Designation: X Comm. Panel No.: 26125C0656F Date: 09/29/2006 Utilities Desc.: All Available Source of Land Info.: Engineering Report Comments The buyer purchased the property based upon upside instead of in-place net operating income. The ground lease with Huntington Bank yields rental income of roughly $128,000 annually with six years remaining on the original 20-year term. The property also contains a branch bank on the property identified as 24805 W. 12 Mile Road, which is under a ground lease. Lockdale Business Center Office Sale Profile Sale No. 4 Location & Property Identification Mars Corporate Center Property Name: Sub-Property Type: General Purpose 25200 Telegraph Rd. Address: Southfield, MI 48034 City/State/Zip: Oakland County: Submarket: North Southfield Suburban Market Orientation: E/S Telegraph, N. of 10 Mile Road Property Location: IRR Event ID: 2759461 Sale Information $9,200,000 Sale Price: $9,200,000 Effective Sale Price: 04/20/2021 Sale Date: Sale Status: Closed $/SF GBA: $48.40 $/SF NRA: $53.58 Grantor/Seller: 25200 Telegraph Assoc. Grantee/Buyer: Brasswater Property Rights: Leased Fee Financing: Cash to seller Terms of Sale Comments: Arm's Length Verified By: Constantino G. Naoum Verification Date: 01/13/2022 Confirmation Source: JP Wolfe, Friedman Real Estate Verification Type: Confirmed-Seller Operating Data and Key Indicators Operating Data Type: In Place Effective Gross Income: $920,000 Management Included: Yes EGIM - Derived: 10.00 Occupancy Occupancy Type Before Sale: Multi-Tenant Occupancy at Time of Sale: 64.00% Number of Tenants at T.O.S.: 12 Improvement and Site Data MSA: Detroit-Warren-Livonia, MI Metropolitan Statistical Area 24-20-477-019 Legal/Tax/Parcel ID: GBA-SF: 190,084 NRA-SF: 171,700 7.84/7.84 Acres(Usable/Gross): 341,510/341,510 Land-SF(Usable/Gross): Usable/Gross Ratio: 1.00 Year Built: 1974 Most Recent Renovation: 2005 Property Class: B Construction Quality: Average Improvements Cond.: Average Exterior Walls: Glass No. of Buildings/Stories: 1/5 Total Parking Spaces: 696 Park. Ratio 1000 SF GLA: 4.05 No. Surface Spaces: 696 Park. Ratio 1000 SF GBA: 3.66 Air-Conditioning Type: Roof Central Mounted Shape: Rectangular Topography: Level Frontage Feet: 496 Mars Corporate Center Office Sale Profile Sale No. 4 Improvement and Site Data (Cont'd) Frontage Desc.: Telegraph Road Bldg. to Land Ratio FAR: 0.56 Zoning Code: ERO Zoning Desc.: Education Research-Office Utilities Desc.: All Available Public Records Bldg. Phy. Info. Source: Source of Land Info.: Public Records Comments The buyer purchased the asset based upon the potential to raise occupancy in the future. Lobbies/atrium updated in the 2010s. Contains an onsite cafeteria. Mars Corporate Center NEWMARK VALUATION & ADVISORY 31 E Hudson & 51111 Woodward Ave (Campus I and II) 31 East Judson Street & 51111 Woodward Avenue Pontiac, Oakland County, MI 48342 Newmark Job No.: 23-0188994-1 Restricted Appraisal Report Prepared For: Andy Gutman Oakland County c/o NAI Farbman 28400 Northwestern Highway, 4th Floor Southfield, MI 48034 Prepared By: Newmark Valuation & Advisory 27725 Stansbury Blvd., Suite 300 Farmington Hills, MI 48334 NEWMARK VALUATION & ADVISORY Newmark Valuation & Advisory 27725 Stansbury Blvd., Suite 300 Farmington Hills, MI 48334 www.nmrk.com/valuation July 25, 2023 Andy Gutman Oakland County c/o NAI Farbman 28400 Northwestern Highway, 4th Floor Southfield, MI 48034 RE: Appraisal of an Office property located at 31 East Judson Street & 51111 Woodward Avenue, Pontiac, Oakland County, MI 48342, prepared by Newmark Valuation & Advisory, LLC (herein “Firm” or “Newmark”) Newmark Job No.: 23-0188994-1 Dear Mr. Gutman: The subject property represents a 391,217 square-foot office project located at the northeastern corner of the intersection of Woodward Avenue and Judson Street in the city of Pontiac, Oakland County, MI 48342. The subject was constructed in 1981 and is situated on a 14.650-acre site, with 11.1700 representing the primary site and 3.480 representing excess land in several non- contiguous parcels. The improvements comprise two office towers (51111 Woodward Avenue [Tower 1] and 31 East Judson Street [Tower 2]) and a ground leasehold interest in the Phoenix Center, a 2,700 space parking garage that connects to the two towers and serves as the primary means of parking for the project. The subject was acquired by the current ownership in March 12, 2021 for a reported consideration of $7,400,000. The seller was the City of Pontiac, who acted in duress (described in further detail in the Property History section below). The subject is under contract to be sold to Oakland County (via Farbman Acquisition, LLC) for a consideration of $19,200,000. The County then expects to occupy all of the presently vacant space at the property (some 270,888 or 69.2%), turning the project into a cornerstone redevelopment within the city of Pontiac that is hoped to jump start the so-far tepid redevelopment activity in the city. The subject is further described within the attached report. July 25, 2023 ANDY GUTMAN 31 E Hudson & 51111 Woodward Ave (Campus I and II) Based on the analysis contained in the following report, the opinion of value for the subject is: Strengths 1. The subject represents one of the most visible office projects in the city of Pontiac 2. The subject has been well maintained, with the structure and mechanical plant in generally good condition. Even most tenant spaces are likely to require only moderate retrofit. 3. The subject has access to Phoenix Center, which provides parking for the subject at present, which is generally regarded as an appealing amenity 4. Existing tenancy comprises primarily governmental uses, a tenant base for which the subject is suited and which aligns well with the intended County occupancy, while providing marketable tenancy to the ownership Key Value Considerations Risk Factors 1. Pontiac remains an only secondary / tertiary market 2. Phoenix Center is reportedly in need of substantial renovations 3. Governmental leases include provisions for early termination (typical of the tenant type) 4. The recent increases in interest rates are applying pressure to real estate prices across all asset classes. ESG+R 1. Heat Stress is at the medium risk threshold category 2. The subject is not located in a flood zone 3. The property is not LEED certified 4. Based on our research, there are no local ESG laws that affect the subject property National Trends and Uncertainties 1. Federal Reserve interest rate increases and associated effects on cost of capital and investment rates along with credit tightening have impaired transaction volumes. 2. Despite positives such as a healthy job market, at least a mild recession is still expected later this year. 3. Consumer spending and robust job growth have so far kept the economy growing in spite of high inflation and interest rate increases, as well as bank closures. 4. Easing of inflation, consumer spending, and continued job growth have so far kept the economy growing in spite of interest rate increases and bank s ystem stress. July 25, 2023 ANDY GUTMAN 31 E Hudson & 51111 Woodward Ave (Campus I and II) Extraordinary Assumptions An extraordinary assumption is defined in USPAP as an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions. The value conclusions are subject to the following extraordinary assumptions that may affect the assignment results. Hypothetical Conditions A hypothetical condition is defined in USPAP as a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results but is used for the purpose of analysis. The value conclusions are based on the following hypothetical conditions that may affect the assignment results. The appraisal was developed based on, and this report has been prepared in conformance with the Client’s appraisal requirements, the guidelines and recommendations set forth in the Uniform Standards of Professional Appraisal Practice (USPAP), the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute, Title XI of the Financial Institution Reform, Recovery and Enforcement Act (FIRREA) of 1989, and the Interagency Appraisal and Evaluation Guidelines (December 2, 2010). Value Conclusions Appraisal Premise Interest Appraised Date of Value Value Conclusion Market Value "As Is" Leased Fee 6/21/2023 $19,600,000 Value of Excess Land Excess Site 2 3.480 Acres Fee Simple 6/21/2023 $279,000 * Excess land is not included in the final value conclusions Compiled by Newmark 1. It was assumed that the reported parking structure retrofit costs are sufficient to cure any outstanding deferred maintenance 2. It was assumed that Oakland County occupies all of the available space subsequent to the prospective sale. The use of these extraordinary assumptions might have affected assignment results. 1. None CERTIFICATION 5 31 E Hudson & 51111 Woodward Ave (Campus I and II) Certification We certify that, to the best of our knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are our personal, impartial and unbiased professional analyses, opinions, and conclusions. 3. We have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. 4. We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 5. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. 6. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 7. This appraisal assignment was not based upon a requested minimum valuation, a specific valuation, or the approval of a loan. 8. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, as well as the requirements of the State of Michigan. 9. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. 10. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 11. As of the date of this report, Ilya Barskiy, MAI has completed the continuing education program for Designated Members of the Appraisal Institute. 12. Ilya Barskiy, MAI made a personal inspection of the property that is the subject of this report. Tony Roberts has not personally inspected the subject. 13. Significant real property appraisal assistance was provided by Casey Wagner (MI License No. 1201076899) who has not signed this certification. The assistance of Casey Wagner (MI License No. 1201076899) consisted of participating in the property inspection, conducting research on the market, subject property, and transactions involving comparable properties, performing certain appraisal analyses, and assisting in report writing, all under the supervision of the person(s) signing this report. 14. The Firm operates as an independent economic entity. Although employees of other service lines or affiliates of the Firm may be contacted as a part of our routine market research investigations, absolute client confidentiality and privacy were maintained at all times with regard to this assignment without conflict of interest. 15. Within this report, "Newmark", "Newmark Valuation & Advisory", "Newmark, Inc.", and similar forms of reference refer only to the appraiser(s) who have signed this certification and any persons noted above as having provided significant real property appraisal assistance to the persons signing this report. CERTIFICATION 6 31 E Hudson & 51111 Woodward Ave (Campus I and II) Ilya Barskiy, MAI Executive Vice President Certified General Appraiser Michigan # 1205071463 Telephone: 248.871.2327 Email: Ilya.Barskiy@nmrk.com Tony Roberts Senior Managing Director Certified General Appraiser Michigan # 1205074174 Telephone: 248-228-4895 Email: Tony.Roberts@nmrk.com 16. Ilya Barskiy, MAI has not performed any 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 the agreement to perform this assignment. Tony Roberts has not performed any 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 the agreement to perform this assignment. 17. In Michigan, appraisers are required to be licensed/certified and are regulated by the Michigan Department of Licensing and Regulatory Affairs, PO Box 30018 Lansing, Michigan 48909. TABLE OF CONTENTS 31 E Hudson & 51111 Woodward Ave (Campus I and II) Table of Contents Appraisal Transmittal and Certification Certification Table of Contents Subject Maps Subject Photographs Executive Summary ................................... 10 Introduction ............................................... 13 Economic Analysis .................................... 16 Area Analysis ......................................... 17 Neighborhood Analysis ......................... 21 Office Market Analysis .......................... 25 Subject Property Analysis ......................... 29 Land and Site Analysis .......................... 31 Zoning and Legal Restrictions .............. 32 Improvements Analysis ......................... 33 Real Estate Taxes .................................. 35 Excess Land Valuation .............................. 37 Sales Comparison Approach ..................... 40 Sales Comparison Approach Conclusion ................................................................. 42 Income Capitalization Approach ............... 44 Rent Roll / Tenant Overview .................. 44 Market Rent Analysis ............................. 45 Operating Expense Analysis ................. 50 Direct Capitalization .............................. 50 Direct Capitalization Summary ............. 54 Reconciliation of Value ............................. 56 Assumptions and Limiting Conditions ...... 57 Addenda A. Glossary of Terms B. Engagement Letter C. Legal Description D. Comparable Data Improved Sales E. Précis Metro Report - Economy.Com, Inc. F. Appraiser Qualifications and Licenses SUBJECT MAPS 8 31 E Hudson & 51111 Woodward Ave (Campus I and II) Aerial Photo Location Map SUBJECT PHOTOGRAPHS 9 31 E Hudson & 51111 Woodward Ave (Campus I and II) Exterior View of the Subject - 51111 Woodward Ave Exterior View of the Subject - 31 East Judson St View of the Main Lobby View of a Typical Occupied Space View of a Typical Vacant Space View of the Parking EXECUTIVE SUMMARY 10 31 E Hudson & 51111 Woodward Ave (Campus I and II) Executive Summary Property Type: Office-General Purpose Street Address: 31 East Judson Street & 51111 Woodward Avenue City, State & Zip: Pontiac, Oakland County, MI 48342 MSA Name: Detroit-Warren-Dearborn, MI Market Name: MI - Detroit Submarket Name: Pontiac Investment Class: Class C Latitude: 42.633837 Longitude: -83.290141 Census Tract: 1424.00 Gross Building Area (SF): 425,970 Net Rentable Area (SF): 391,217 Year Built: 1981 Current Occupancy: 100.0% Land Area: 11.170 acres; 486,565 SF Assessor's Parcel ID(s): Highest and Best Use - As Vacant: An Office Use Highest and Best Use - As Improved: Office Use 31 E Hudson & 51111 Woodward Ave (Campus I and II) 14-32-227-002, 14-32-226-020 & 14-29-484-006; 14-32-226- 021, 14-32-227-003, 14-29-484-003, 14-29-484-010 and 14-32-231-009 EXECUTIVE SUMMARY 11 31 E Hudson & 51111 Woodward Ave (Campus I and II) Analysis Details Valuation Date: Market Value "As Is" June 21, 2023 Inspection Date and Date of Photos: Report Date: Report Type: Client: Intended Use: Intended User: Appraisal Premise: Intended Use and User: Interest Appraised: Exposure Time (Marketing Period) Estimate: Site Characteristics Total Land Area (Gross): 14.650 acres; 638,154 SF Usable Land Area (Net): 11.170 acres; 486,565 SF Surplus Land Area: 0.000 acres; 0 SF Excess Land Area: 3.480 acres; 151,589 SF Shape: Irregular Topography: Level Flood Zone: Zone X Flood Map / Date: 26125C0368F / 9/29/2006 Zoning C-2: Downtown Mixed Use Legally Conforming Yes Easements / Encroachments: None Noted Environmental Hazards: None Noted Improvements Characteristics Number of Buildings / Stories: 3 / 8 Gross Building Area (SF): 425,970 Net Rentable Area (SF): 391,217 Floor Area Ratio: 0.875 Year Built / Renovated: 1981 / None Property Condition Average Required Capital Expenditures (total): $3,850,000 Economic Age / Life: 25 Yrs / 50 Year Life June 21, 2023 Market Value "As Is" July 25, 2023 The intended use and user of our report are specifically identified in our report as agreed upon in our contract for services and/or reliance language found in the report. No other use or user of the report is permitted by any other party for any other purpose. Dissemination of this report by any party to non-client, non-intended users does not extend reliance to any other party and Newmark will not be responsible for unauthorized use of the report, its conclusions or contents used partially or in its entirety. Restricted Appraisal Report The intended use of the appraisal is solely for internal business decisions (“intended use”) and no other use. and no other use is permitted. Oakland County and NAI Farbman and no other user is permitted by any other party for any other purpose. Leased Fee 12 Months (12 Months) Oakland County c/o NAI Farbman Compiled by Newmark Number of Tenants 10 Average Contract Rent/SF $10.52 Average Market Rent/SF $8.50 MLA Space Type Summary Rentable SF % Leased % of Total Contract Rent Contract Rent PSF Market Rent PSF Contract as % of Market Office Space: 391,217 100.0% 100.0% $10.52 $8.50 123.7% Total 391,217 100.0% 100.0% $10.52 $8.50 123.7% Leasing Summary Valuation Summary Excess Land Value $279,000 Sales Comparison Approach $/SF $ Total Number of Sales 5 Range of Sale Dates Oct-20 to Feb-23 Adjusted Range of Comparables ($/SF)$55.28 to $93.05 Indicated Sales Comparison Approach Value As Is $50.15 $19,620,000 EXECUTIVE SUMMARY 12 31 E Hudson & 51111 Woodward Ave (Campus I and II) Income Capitalization Approach - Direct Capitalization Method $/SF $ Total Capitalization Rate Indicators and Conclusion Indication Comparable Sales 7.72% - 11.21% Investor Surveys 7.00% - 8.50% Band of Investment 10.50% Concluded Going-In Capitalization Rate 10.50% Stabilized Income Estimate Potential Gross Income $14.11 $5,519,214 Stabilized % Vacancy & Collection Loss -13.50% ($745,094) Effective Gross Income $12.20 $4,774,120 Operating Expenses $5.88 $2,300,564 Operating Expense Ratio 48.2% Net Operating Income $6.32 $2,473,555 Capitalization Rate 10.50% Indicated Income Capitalization Approach Value As Is $50.38 $19,710,000 1. It was assumed that the reported parking structure retrofit costs are sufficient to cure any outstanding deferred maintenance 2. It was assumed that Oakland County occupies all of the available space subsequent to the prospective sale. 1. None Compiled by Newmark Extraordinary Assumptions and Hypothetical Conditions An extraordinary assumption is defined in USPAP as an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions. The value conclusions are subject to the following extraordinary assumptions that may affect the assignment results. A hypothetical condition is defined in USPAP as a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. The value conclusions are based on the following hypothetical conditions that may affect the assignment results. The use of these extraordinary assumptions might have affected assignment results. INTRODUCTION 13 31 E Hudson & 51111 Woodward Ave (Campus I and II) Introduction OWNERSHIP HISTORY The title to the subject is presently vested in the name of Ottawa Towers 2021 LLC. The subject was acquired by the current ownership in March 12, 2021 for a reported consideration of $7,400,000. The seller was the City of Pontiac, who acted in duress. The previous owner of the property secured a $30,000,000 judgement against the City associated with the Phoenix Center parking deck. The threat of this payment was widely reported to likely push the City into bankruptcy. When the subject’s owner presented a cash offer at the stated $7,400,000, the City was able to avoid bankruptcy, buying out the asset from the previous owner at $19,400,000 and transferring it to the current owner at $7,400,000. Again, although the City incurred a loss as a result of this transaction, its magnitude was bearable for the City and helped it avoid bankruptcy. With these considerations, the most recent purchase price is not deemed to represent a reliable indicator of the subject’s market value. The subject is under contract to be sold to Oakland County (via Farbman Acquisition, LLC) for a consideration of $19,200,000. The County then expects to occupy all of the presently vacant space at the property (some 270,888 or 69.2%), turning the project into a cornerstone redevelopment within the city of Pontiac that is hoped to jump start the so-far tepid redevelopment activity in the city. Based on the analysis and conclusions contained in this report, this pending purchase price is generally consistent with the property’s market value. Listing Status: Not Listed For Sale In-Contract: May 17, 2023 Buyer: Seller: Purchase Price: $19,200,000 $49.08 Per SF (Net Rentable Area) Variance Compared to Appraised Value: -2.04% Previous Sales Date of Sale: March 12, 2021 Most Recent Reported Sale: March 12, 2021 Buyer: Seller: Purchase Price: $7,400,000 $18.92 Per SF (Net Rentable Area) Deed Information: Comments: Compiled by Newmark Warranty Deed Acquired as a vacant lot Ownership History The following summarizes all transactions involving the subject within the prior three years. Oakland County (via Farbman Acquisition, LLC) Ottawa Towers 2021 LLC Ottawa Towers 2021 LLC City of Pontiac INTRODUCTION 14 31 E Hudson & 51111 Woodward Ave (Campus I and II) To the best of our knowledge, no other sale or transfer of ownership has taken place within a three-year period prior to the effective date of the appraisal, nor the property is presently listed for sale. PHOENIX CENTER GROUND LEASE The subject property includes ground leasehold interest in the Phoenix Center. The ground lease reportedly has some 97 years remaining, and stipulates nominal payments by the lessee ($30 every 20years). The lessee carries all obligations of ownership and maintenance on the parking garage, which was reflected, as appropriate, in the forthcoming analyses. DEFINITION OF VALUE Market value is defined as: “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: – Buyer and seller are typically motivated. – Both parties are well informed or well advised and acting in what they consider their own best interests. – A reasonable time is allowed for exposure in the open market. – Payment is made in terms of 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.” (Source: Code of Federal Regulations, Title 12, Chapter I, Part 34.42[g]; also Interagency Appraisal and Evaluation Guidelines, Federal Register, 75 FR 77449, December 10, 2010, page 77472) RESTRICTED APPRAISAL REPORT This appraisal is presented in the form of a restricted appraisal report, which is intended to comply with the reporting requirements set forth under Standards Rule 2-2(b) of USPAP. The use of this report is limited to the client and the intended user should note that the rationale for how the INTRODUCTION 15 31 E Hudson & 51111 Woodward Ave (Campus I and II) opinions and conclusions set forth in the report may not be understood properly without additional information in the appraiser’s work file. SCOPE OF WORK Extent to Which the Property is Identified – Physical characteristics – Legal characteristics – Economic characteristics Extent to Which the Property is Inspected Newmark inspected the subject property on June 21, 2023 as per the defined scope of work. Ilya Barskiy, MAI made a personal inspection of the property that is the subject of this report. Tony Roberts has not personally inspected the subject. Type and Extent of the Data Researched – Exposure and marketing time. – Neighborhood and land use trends. – Demographic trends. – Market trends relative to the subject property type. – Physical characteristics of the site and applicable improvements; – Flood zone status. – Zoning requirements and compliance. – Real estate tax data. – Relevant applicable comparable data; and – Investment rates Type and Extent of Analysis Applied We analyzed the property and market data gathered through the use of appropriate, relevant, and accepted market-derived methods and procedures. Further, we employed the appropriate and relevant approaches to value, and correlated and reconciled the results into an estimate of market value, as demonstrated within the restricted appraisal report. Application of Approaches to Value Approach Comments Cost Approach Sales Comparison Approach Income Capitalization Approach Compiled by Newmark The Income Capitalization Approach is applicable and is utilized in this appraisal. The Sales Comparison Approach is applicable and is utilized in this appraisal. The Cost Approach is not applicable and is not utilized in this appraisal. ECONOMIC ANALYSIS 16 31 E Hudson & 51111 Woodward Ave (Campus I and II) Economic Analysis NATIONAL TRENDS AND UNCERTAINTIES National and Global economies have experienced record setting inflation and interest rates have continued to increase. Influences of the COVID pandemic on the economy have reduced but some fallout effects continue. A recession is still a concern among economists and the populace at large while the yield curve continues to signal a recession. The April 2023 forecast by The Conference Board shows the strong likelihood of a recession later this year. Surveys of economists are not as severe with usually about 60% saying they expected a recession this year. However, consumer spending and robust job growth have allowed the economy to continue to grow. In an effort to curtail inflation, The Federal Reserve embarked on an aggressive strategy which may be bearing fruit. In spite of three major bank failures, the Fed raised rates another 25 basis points in May 2023, for a total of 500 basis points over the course of 2022 into 2023. The Fed is targeting a range of 5.00% to 5.25% for the Federal Funds Rate – the highest since August 2007. The three 2023 increases were smaller at 25 basis points than the previous increases and the Fed signaled a tentative hint that the current tightening cycle is near an end bringing to a close the fastest increase in rates the Federal Reserve has ever engineered. Commercial real estate is receiving an increased amount of attention as prices are demonstrably falling and transaction volumes plummeting. These effects are a function of the unfavorable economic and credit conditions as well as other factors such as impacts to office use driven in part by the COVID-19 pandemic. Credit tightening, which includes wider credit spreads and lower loan-to-value ratios, is arising due to uncertain economic outlooks, deterioration in real estate collateral values, and concerns about bank liquidity. According to Real Capital Analytics (RCA), commercial transaction volume was down 56% in the first quarter of 2023 over the same period in 2022. Note, however, that the first quarter of 2022 had record high transaction volumes which skews the comparison. We have considered, and will address, these issues throughout this appraisal and report including in our determinations of overall capitalization rates, discount rates, market rent assumptions, market conditions adjustments, and growth of rents and expenses where applicable. ECONOMIC ANALYSIS 17 31 E Hudson & 51111 Woodward Ave (Campus I and II) AREA ANALYSIS Area Map The subject is located within Pontiac and Oakland County, Michigan. It is part of the Warren-Troy- Farmington Hills metro area (Warren-Troy-Farmington Hills MSA). ECONOMIC ANALYSIS 18 31 E Hudson & 51111 Woodward Ave (Campus I and II) Employment Sectors and Trends Employment data by occupation and business/industry sectors provides an indication of the amount of diversification and stability in the local economy. Job sector composition also gives an indication of the predominant drivers of current and future demand for supporting commercial real estate sectors. The following tables display employment data by occupation sector and by business/industry sector for the area and region. Occupation Sector White Collar 2,708 36.8% 10,287 39.2% 488,160 73.0% 1,303,806 62.3% 2,844,958 59.5% Administrative Support 747 10.2% 2,563 9.8% 62,296 9.3% 217,064 10.4% 495,434 10.4% Management/Business/Financial 458 6.2% 2,027 7.7% 151,089 22.6% 368,791 17.6% 783,715 16.4% Professional 827 11.3% 3,566 13.6% 215,203 32.2% 538,370 25.7% 1,165,279 24.4% Sales and Sales Related 676 9.2% 2,131 8.1% 59,572 8.9% 179,581 8.6% 400,530 8.4% Services 2,151 29.3% 6,744 25.7% 80,256 12.0% 313,412 15.0% 740,314 15.5% Blue Collar 2,491 33.9% 9,182 35.0% 100,279 15.0% 475,112 22.7% 1,195,653 25.0% Construction/Extraction 624 8.5% 2,609 10.0% 23,665 3.5% 90,917 4.3% 225,569 4.7% Farming/Fishing/Forestry 44 0.6% 44 0.2% 459 0.1% 2,480 0.1% 15,958 0.3% Installation/Maintenance/Repair 161 2.2% 609 2.3% 12,805 1.9% 58,113 2.8% 150,380 3.1% Production 1,004 13.7% 3,602 13.7% 31,027 4.6% 158,521 7.6% 412,791 8.6% Transportation/Material Moving 658 9.0% 2,318 8.8% 32,323 4.8% 165,081 7.9% 390,955 8.2% Total Employees (16+ Occupation Base) 7,350 100.0% 26,213 100.0% 668,695 100.0% 2,092,330 100.0% 4,780,925 100.0% Source: ESRI; Compiled by Newmark Current Employment by Occupation Sector Michigan48342 Detroit-Warren- Dearborn, MI MSAPontiac City Oakland County Industry Sector Agriculture/Mining 7 0.1% 12 0.0% 1,526 0.2% 6,169 0.3% 46,608 1.0% Construction 663 9.0% 2,697 10.3% 33,536 5.0% 117,584 5.6% 290,859 6.1% Manufacturing 1,240 16.9% 4,675 17.8% 132,640 19.8% 404,311 19.3% 889,586 18.6% Wholesale Trade 56 0.8% 168 0.6% 10,051 1.5% 32,088 1.5% 74,647 1.6% Retail Trade 947 12.9% 3,166 12.1% 61,849 9.2% 213,236 10.2% 505,304 10.6% Transportation/Utilities 334 4.5% 1,138 4.3% 23,572 3.5% 116,369 5.6% 252,679 5.3% Information 71 1.0% 491 1.9% 10,016 1.5% 25,835 1.2% 56,887 1.2% Finance/Insurance/Real Estate 145 2.0% 761 2.9% 58,962 8.8% 150,796 7.2% 298,336 6.2% Services 3,810 51.8% 12,557 47.9% 318,092 47.6% 958,245 45.8% 2,197,038 46.0% Public Administration 77 1.0% 548 2.1% 18,451 2.8% 67,697 3.2% 168,981 3.5% Total Employees (16+ Occupation Base) 7,350 100.0% 26,213 100.0% 668,695 100.0% 2,092,330 100.0% 4,780,925 100.0% Source: ESRI; Compiled by Newmark Current Employment by Industry Sector 48342 Pontiac City Oakland County Detroit-Warren- Dearborn, MI MSA Michigan ECONOMIC ANALYSIS 19 31 E Hudson & 51111 Woodward Ave (Campus I and II) Comparing the industry sectors for the local market area (Pontiac City) to Detroit-Warren- Dearborn, MI MSA indicates the local market area is somewhat more heavily weighted toward the Construction, Services, Retail Trade, and Information sectors. By contrast, the industry employment totals for Detroit-Warren-Dearborn, MI MSA indicate somewhat higher proportions within the Finance/Insurance/Real Estate, Manufacturing, Transportation/Utilities, Public Administration, Wholesale Trade, and Agriculture/Mining sectors. The following graphic further illustrates this comparison. Source: ESRI; Compiled by Newmark Employment Comparison 45.8% 19.3% 10.2% 5.6% 5.6% 7.2% 3.2% 1.2% 1.5% 0.3% 47.9% 17.8% 12.1% 10.3% 4.3% 2.9% 2.1% 1.9% 0.6% 0.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% Services Manufacturing Retail  Trade Construction Transportation/Utilities Finance/Insurance/Real Estate Public  Administration Information Wholesale Trade Agriculture/Mining Pontiac City Detroit‐Warren‐Dearborn, MI MSA ECONOMIC ANALYSIS 20 31 E Hudson & 51111 Woodward Ave (Campus I and II) Unemployment The following table displays the historical unemployment data for the area derived from the US Department of Commerce, Bureau of Labor Statistics. The most recent reported unemployment rate for the Detroit-Warren-Dearborn, MI Metropolitan Statistical Area is 2.8% (March 2023). Conclusion Bars represent beginning to end range of unemployment rates in each year Orange bars denote increasing unemployment from beginning to end of year Blue bars are declining unemployment from beginning to end of year Arrows are extent of unemployment rates over the year Compiled by Newmark Unemployment Rate: Detroit-Warren-Dearborn, MI Metropolitan Statistical Area 1.0% 6.0% 11.0% 16.0% 21.0% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 ECONOMIC ANALYSIS 21 31 E Hudson & 51111 Woodward Ave (Campus I and II) NEIGHBORHOOD ANALYSIS Neighborhood Map Boundaries The subject is located in the city of Pontiac, which is considered as suburban downtown location. For the purposes of the forthcoming discussion, the neighborhood was approximated as the area contained within a one-mile radius of the subject. Surrounding Area of Influence Trends Description – The subject’s surrounding area is viewed as suburban downtown area. The area contains some walkable areas, yet primarily relies of vehicular access for occupants of and visitors to the neighborhood. Fundamental Real Estate Cycle The surrounding area is considered to be within the late decline / early revitalization stage of its real estate cycle. ECONOMIC ANALYSIS 22 31 E Hudson & 51111 Woodward Ave (Campus I and II) Access Primary Access Woodward Avenue and Huron Street provide primary vehicular access to the neighborhood. Transportation There is no public transportation in the immediate vicinity of the subject. Distance from Key Locations The subject is located within a 40-minute drive from the Detroit CBD and a 40-minute drive from the Detroit Metropolitan Wayne County Airport. The following illustrates the 15-minute drive time from the subject. Drive Time Map ECONOMIC ANALYSIS 23 31 E Hudson & 51111 Woodward Ave (Campus I and II) Land Use The following was developed from Costar data for the major property types in the surrounding 1.0 mile radius around the subject. Souce: Costar; Compiled by Newmark Surrounding Area Commercial Property Characteristics Office Industrial Retail Flex Specialty Multi- Family Health Care By # of Properties Office Industrial Retail Specialty Multi- Family Health Care By Size (SF) ECONOMIC ANALYSIS 24 31 E Hudson & 51111 Woodward Ave (Campus I and II) Demographics A demographic summary for the defined area is illustrated as follows: Demand Generators Historically driven by General Motors, the area has struggled to secure meaningful demand drivers since the automaker exited the area. It is hoped that the pending purchase and occupancy of the subject by the Oakland County can reignite the drive for revitalization in the surrounding area. 1-Mile Radius 3-Miles Radius 5-Miles Radius 48342 Pontiac City Oakland County Detroit-Warren- Dearborn, MI MSA Michigan Population 2010 Total Population 10,340 71,434 150,155 18,485 59,651 1,202,355 4,296,250 9,883,640 2023 Total Population 10,407 75,205 158,974 18,945 62,479 1,285,938 4,391,572 10,098,040 2028 Total Population 10,339 74,958 158,707 18,774 62,112 1,290,575 4,375,903 10,076,564 Projected Annual Growth % -0.1% -0.1% 0.0% -0.2% -0.1% 0.1% -0.1% 0.0% Households 2010 Total Households 3,586 27,573 59,443 6,735 22,279 483,696 1,682,111 3,872,508 2023 Total Households 3,901 29,919 64,898 7,192 24,406 532,151 1,773,619 4,079,897 2028 Total Households 3,899 30,092 65,438 7,190 24,494 539,208 1,787,073 4,116,402 Projected Annual Growth % 0.0% 0.1% 0.2% 0.0% 0.1% 0.3% 0.2% 0.2% Income 2023 Median Household Income $29,438 $46,723 $65,209 $33,196 $38,810 $91,020 $69,898 $65,287 2023 Average Household Income $44,744 $77,511 $109,461 $46,980 $55,074 $130,356 $102,117 $94,443 2023 Per Capita Income $17,716 $31,451 $45,079 $18,121 $21,926 $53,992 $41,276 $38,288 Housing 2023 Owner Occupied Housing Units 33.2% 46.2% 54.6% 36.5% 37.7% 67.3% 64.6% 63.4% 2023 Renter Occupied Housing Units 54.7% 45.9% 37.8% 54.2% 53.7% 27.3% 28.1% 25.1% 2023 Median Home Value $80,420 $165,363 $277,187 $72,990 $90,426 $326,870 $240,866 $222,633 Median Year Structure Built 1951 1960 1969 1956 1959 1975 1968 1971 Miscellaneous Data Items 2023 Bachelor's Degree 7.7% 16.3% 21.4% 6.9% 11.1% 29.5% 21.2% 20.1% 2023 Grad/Professional Degree 2.8% 10.3% 17.5% 2.7% 4.7% 21.8% 13.7% 12.5% 2023 College Graduate % 10.6% 26.5% 38.9% 9.6% 15.8% 51.3% 34.9% 32.6% 2023 Average Household Size 2.61 2.46 2.37 2.58 2.50 2.39 2.45 2.42 2023 Median Age 37.6 38.6 39.9 35.6 35.4 42.6 41.5 41.1 Source: ESRI; Compiled by Newmark Demographic Analysis ECONOMIC ANALYSIS 25 31 E Hudson & 51111 Woodward Ave (Campus I and II) OFFICE MARKET ANALYSIS Classification The subject is in the Pontiac submarket of the Detroit market. Office Market Overview The following discussion outlines overall market performance in the surrounding Office market using Costar market metric data. Presented first are market statistics of the Detroit area and the subject Pontiac submarket overall. Period Detroit Pontiac Q4 2019 91.2% 90.5% Q1 2020 91.3% 89.4% Q2 2020 91.1% 89.8% Q3 2020 90.6% 89.5% Q4 2020 90.3% 89.6% Q1 2021 90.2% 93.2% Q2 2021 89.9% 88.3% Q3 2021 89.6% 89.1% Q4 2021 89.4% 90.6% Q1 2022 89.4% 90.6% Q2 2022 89.4% 90.0% Q3 2022 89.3% 89.3% Q4 2022 88.6% 88.3% Q1 2023 88.3% 88.5% Source: Costar; Compiled by Newmark Valuation & Advisory Occupancy Rate 85.0% 87.0% 89.0% 91.0% 93.0% 95.0% 97.0% 99.0% Q4 2019 Q3 2020 Q2 2021 Q1 2022 Q4 2022 Detroit Pontiac ECONOMIC ANALYSIS 26 31 E Hudson & 51111 Woodward Ave (Campus I and II) Market and Submarket Trends Period Detroit Pontiac Q4 2019 $19.92 $18.48 Q1 2020 $20.01 $18.77 Q2 2020 $19.96 $19.39 Q3 2020 $20.47 $19.73 Q4 2020 $20.62 $19.82 Q1 2021 $20.47 $19.97 Q2 2021 $20.52 $20.26 Q3 2021 $20.56 $20.35 Q4 2021 $20.68 $23.00 Q1 2022 $20.64 $22.10 Q2 2022 $20.50 $22.19 Q3 2022 $20.69 $22.51 Q4 2022 $20.87 $22.57 Q1 2023 $20.92 $22.53 Source: Costar; Compiled by Newmark Valuation & Advisory Asking Rent Per SF $18.00 $19.00 $20.00 $21.00 $22.00 $23.00 $24.00 $25.00 $26.00 $27.00 $28.00 Q4 2019 Q3 2020 Q2 2021 Q1 2022 Q4 2022 Detroit Pontiac Trailing Four Quarters Ended Q1 2023 Market / Submarket Inventory (SF) Completions (SF)Vacancy (%) Net Absorption (SF) Office Gross Rent Overall / SF Office Base Rent Overall / SF Detroit 228,364,555 916,465 11.70% -1,738,839 $20.92 $18.40 Pontiac 6,628,295 0 11.50% -145,254 $22.53 $15.20 Source: Costar; Compiled by Newmark Valuation & Advisory Office Market Statistics Inventory (SF) Completions (SF)Vacancy % Office Gross Rent Overall / SF Inventory (SF) Completions (SF)Vacancy % Office Gross Rent Overall / SF Q1 2021 227,242,914 478,337 9.8% $20.47 6,628,295 0 6.8% $19.97 Q2 2021 227,289,394 56,543 10.1% $20.52 6,628,295 0 11.7% $20.26 Q3 2021 227,507,005 226,725 10.4% $20.56 6,628,295 0 10.9% $20.35 Q4 2021 227,750,109 244,304 10.6% $20.68 6,628,295 0 9.4% $23.00 Q1 2022 227,669,486 283,664 10.6% $20.64 6,628,295 0 9.4% $22.10 Q2 2022 227,757,055 89,707 10.6% $20.50 6,628,295 0 10.0% $22.19 Q3 2022 228,323,146 590,081 10.7% $20.69 6,628,295 0 10.7% $22.51 Q4 2022 228,321,768 150,137 11.4% $20.87 6,628,295 0 11.7% $22.57 Q1 2023 228,364,555 86,540 11.7% $20.92 6,628,295 0 11.5% $22.53 Source: Costar; Compiled by Newmark Valuation & Advisory Detroit Pontiac Office Market Trends ECONOMIC ANALYSIS 27 31 E Hudson & 51111 Woodward Ave (Campus I and II) Long Term Detroit Market Metrics The following provides a longer-term view of the market. Detroit Market Metrics Period Inventory (SF) Vacancy % Net Absorption (SF) Completions (SF) Office Gross Rent Overall Office Base Rent Overall Q3 2020 226,983,468 9.4% -1,103,107 174,888 $20.47 $17.84 Q4 2020 227,164,131 9.7% -539,714 211,163 $20.62 $17.86 Q1 2021 227,242,914 9.8% -28,084 478,337 $20.47 $17.72 Q2 2021 227,289,394 10.1% -648,078 56,543 $20.52 $17.83 Q3 2021 227,507,005 10.4% -652,578 226,725 $20.56 $17.81 Q4 2021 227,750,109 10.6% -99,334 244,304 $20.68 $17.93 Q1 2022 227,669,486 10.6% -200,898 283,664 $20.64 $18.04 Q2 2022 227,757,055 10.6% 103,696 89,707 $20.50 $18.17 Q3 2022 228,323,146 10.7% 229,947 590,081 $20.69 $18.34 Q4 2022 228,321,768 11.4% -1,420,565 150,137 $20.87 $18.46 Q1 2023 228,364,555 11.7% -651,917 86,540 $20.92 $18.40 Y 2003 216,195,231 13.0% 1,090,715 3,463,156 $20.63 $17.86 Y 2004 218,905,343 13.0% 2,439,544 3,550,514 $20.14 $17.41 Y 2005 221,506,082 13.3% 1,477,102 2,667,283 $19.52 $17.09 Y 2006 224,168,529 14.2% 356,053 2,675,922 $19.72 $17.09 Y 2007 226,184,078 14.4% 1,249,773 2,068,772 $19.39 $16.63 Y 2008 227,303,507 15.1% -611,965 1,134,134 $19.15 $16.50 Y 2009 227,742,235 16.3% -2,333,045 637,119 $18.56 $16.24 Y 2010 228,064,289 16.7% -822,707 574,310 $18.23 $15.89 Y 2011 227,370,956 16.3% 545,448 189,889 $17.80 $15.62 Y 2012 226,953,165 15.9% 480,768 591,374 $17.39 $15.33 Y 2013 225,905,348 15.0% 1,041,916 101,905 $17.23 $15.22 Y 2014 225,539,846 13.9% 2,133,078 625,398 $17.41 $15.36 Y 2015 226,188,486 12.8% 3,176,350 1,125,267 $18.19 $15.96 Y 2016 226,235,972 11.1% 3,845,878 572,623 $18.65 $16.26 Y 2017 226,399,790 10.0% 2,647,994 1,184,249 $18.91 $16.59 Y 2018 226,509,964 9.0% 2,280,597 882,976 $19.32 $17.08 Y 2019 226,712,539 8.8% 661,900 879,133 $19.92 $17.41 Y 2020 227,164,131 9.7% -1,783,315 585,724 $20.62 $17.86 Y 2021 227,750,109 10.6% -1,428,074 1,005,909 $20.68 $17.93 Y 2022 228,321,768 11.4% -1,287,820 1,113,589 $20.87 $18.46 5 Year Average 227,291,702 9.9% -311,342 893,466 $20.28 $17.75 10 Year Average 226,672,795 11.2% 1,128,850 807,677 $19.18 $16.81 15 Year Average 226,944,140 12.8% 569,800 746,907 $18.86 $16.51 Source: Costar; Compiled by Newmark Valuation & Advisory ECONOMIC ANALYSIS 28 31 E Hudson & 51111 Woodward Ave (Campus I and II) Supply & Demand Construction Versus Absorption Trends and Projections Subject and Market Historical and Forecast Trends – The subject is expected to be fully occupied, with Oakland County owner-occupying the presently vacant space; – The subject property is conducive to such occupancy by virtue of the combination its size, design, and as a result of the shallow nature of the surrounding market; – Due to this shallow nature, however, the subject still carries a substantial risk as, especially larger, tenants are very difficult to replace; – Consequently, a stabilized vacancy allowance modestly above the average reported for the market and submarket were deemed reasonable and appropriate. Market / Submarket SF Built SF Absorbed Const. / Abs. Ratio SF Built SF Absorbed Const. / Abs. Ratio SF Built SF Absorbed Const. / Abs. Ratio Detroit 1,113,589 -1,287,820 -0.9 2,705,222 -4,499,209 -0.6 4,467,331 -1,556,712 -2.9 Pontiac 0 -151,276 0.0 0 -173,816 0.0 25,696 411,826 0.1 Source: Costar; Compiled by Newmark Valuation & Advisory Prior Calendar Year History Prior Three Year History Prior Five Year History Prior Calendar Years History Construction/Absorption Change Current Most Recent Full Year Trailing 3- Year Trailing 5- Year Trailing 10- Year Costar Detroit 11.70% 11.40% 9.70% 9.00% 15.00% Pontiac 11.50% 11.70% 10.40% 10.30% 16.80% Subject 0.00% Concluded Subject Vacancy Rate 12.50% Source: Costar, Newmark Valuation & Advisory Market Vacancy Rate Indicators SUBJECT PROPERTY ANALYSIS 29 31 E Hudson & 51111 Woodward Ave (Campus I and II) Subject Property Analysis Site Plan SUBJECT PROPERTY ANALYSIS 30 31 E Hudson & 51111 Woodward Ave (Campus I and II) Flood Map Zoning Map SUBJECT PROPERTY ANALYSIS 31 31 E Hudson & 51111 Woodward Ave (Campus I and II) LAND AND SITE ANALYSIS The subject site comprises several parcels in two primary groupings. Land Parcels Parcel Summary Associated APN(s) Classification Land Area (SF) Land Area (Acres) Site 1 14-32-227-002, 14-32-226-020 & 14-29-484-006 Primary Site 1 486,565 11.1700 Site 2 14-32-226- 021, 14-32-227-003, 14-29-484-003, 14-29-484-010 and 14-32-231-009 Excess Site 2 151,589 3.4800 638,154 14.6500 486,565 11.1700 0 0.0000 151,589 3.4800 Compiled by Newmark Total Gross Land Area Total Usable Land Area Total Surplus Land Area Total Excess Land Area Total Land Area 14.6500 Acres; 638,154 SF Usable Land Area 11.1700 Acres; 486,565 SF Excess Land Area 3.4800 Acres; 151,589 SF Surplus Land Area None Source of Land Area Public Records Location At the northeastern corner of the intersection of Woodward Avenue Site Characteristics Primary Street Frontage Woodward Avenue, East Judson Street Traffic Control at Entry None Traffic Flow Low Accessibility Rating Average Visibility Rating Average Shape Irregular Corner Yes Rail Access No Topography Level Site Vegetation Trees and grass Other Site Characteristics None noted Easement/Encroachments None Noted Environmental Issue None Noted Flood Zone Analysis Flood Area Panel Number 26125C0368F Date 9/29/2006 Zone Zone X Description Area of minimal flood hazard, usually depicted on Flood Insurance Rate Maps as above the 500-year flood level. Insurance Required? No Utilities Utility Services Electricity, gas, sewer, water Compiled by Newmark Land Description SUBJECT PROPERTY ANALYSIS 32 31 E Hudson & 51111 Woodward Ave (Campus I and II) The primary site includes parcels associated with the office towers and the Phoenix Center garage, identified as Parcels 1, 2, and 3 in the map above. The remainder of the parcels represent excess land in somewhat scattered non-contiguous lots, identified as Parcels 4, 5, 6, 7, and 8 in the map above. ZONING AND LEGAL RESTRICTIONS Category Description Zoning Jurisdiction City of Pontiac Zoning Designation C-2 Description This district consists of higher density mixed use development that accommodates a variety of uses, including retail, office, residential, and entertainment uses, and civic and institutional uses of regional importance. This district has a historic character and is built at a walkable scale that creates pedestrian activity. Legally Conforming? Yes Zoning Change Likely? Unlikely Permitted Uses Variety of commercial, office and service uses. Minimum Lot Area 3,000 SF Front Min: 0 ft Max: 5 ft Side Min: 0 ft Max: 5 ft Rear Min: 0 ft Parking Requirement 1 space per 300 sq. ft. of floor area Other None noted Compiled by Newmark Zoning Summary SUBJECT PROPERTY ANALYSIS 33 31 E Hudson & 51111 Woodward Ave (Campus I and II) IMPROVEMENTS ANALYSIS Component Structures Improvements (Structures)Primary Use General Improvement Type Office Use Description General Purpose No. Buildings 3 GBA (SF)425,970 Rentable SF 391,217 Construction Status Existing, Stabilized Operations Construction Class Class A Quality Good Current Condition Average Age/Life Depreciation Analysis Year Built 1981 Year Renovated None Actual Age (Yrs.)42 Economic Life (Yrs.)50 Effective Age (Yrs.)25 Remaining Economic Life (Yrs.)25 Percent Depreciation 50.00% Floor Area Analysis Number of Stories 8 Est. Ground Floor Area (GBA)53,246 Attributed Site Area (SF)486,565 Site Coverage 10.9% Floor Area Ratio (FAR)0.875 Land to Building Ratio 1.142 Parking Type Covered Parking (Leasehold) Open Parking Spaces 0 Garage Parking Spaces 2,700 Total Parking Spaces 2,700 Parking Ratio Per 1,000 SF NRA 6.90 Construction Details General Purpose Foundation Concrete / Partial Basement Basement None Structural Frame/Construction Summary Steel frame Exterior Walls Precast Concrete Windows Tempered Glass Roof Flat Roof Improvements Description Interior Finish General Purpose Floors Commercial grade carpet, tile, and other resilient flooring Walls Textured and painted sheetrock Ceilings Suspended acoustic tile Lighting Commercial grade fixtures SUBJECT PROPERTY ANALYSIS 34 31 E Hudson & 51111 Woodward Ave (Campus I and II) Space Type/Classification Conclusion – The improvements are of good quality construction and are in average condition overall. However, we note that, with respect to the towers, the structure and the mechanical plants have been well maintained. – Some Interior spaces, especially the main lobby, are likely to require retrofit. The cost of the vacant space retrofit is deemed to be generally commensurate with what can be expected of typical owner-user acquisition / re-occupancy scenario, and was thus not deducted from the value conclusions. – The cost of the main lobby retrofit was estimated at $500,000 for the purposes of our valuation, based on reported lobby renovation totals for other similar projects. – Lastly, the current ownership provided verbal indications that the parking structure would likely require around $3,000,000 to cure outstanding deferred maintenance, which was considered and reflected in our analysis. The following chart summarizes the capital costs discussed above: Engineering & Mechanical General Purpose HVAC Chiller w/ dual boiler system Electrical Assumed adequate Plumbing Assumed adequate Utility Meters Individually metered Elevators 9 Rest Rooms Reported and assumed adequate Fire Sprinklers Yes Compiled by Newmark Building Summary Property Type No. Building s GBA (SF) Rentable SF Occupied SF Primary Use Office-General Purpose 3 425,970 391,217 391,217 Property Type Subtotals Office-General Purpose 3 425,970 391,217 391,217 Improvements Total 3 425,970 391,217 Compiled by Newmark Improvements Summary SUBJECT PROPERTY ANALYSIS 35 31 E Hudson & 51111 Woodward Ave (Campus I and II) Excess Land Improvements One of the excess land sites contains site improvements that include paving and access stairs to the Phoenix Center garage. These improvements appear to be in poor condition and are deemed to be essentially depreciated and would thus need to be removed to permit redevelopment. The cost of this demolition was reported at $100,000, which estimate was utilized in this appraisal. REAL ESTATE TAXES In the State of Michigan, real property taxes are calculated on the basis Taxable Value. The Taxable Value is defined as the lesser of a) Assessed Value, equal to 50% of the property’s true cash value as determined by the assessor, or b) Capped Value, equal to the prior year’s taxable value, less losses, inflated at the lesser of the state-mandated inflation factor (generally equal to the overall inflation), or 5%. The taxes are expressed as a millage rate, or the total levy stated in terms of dollars per $1,000 of taxable value. In the State of Michigan, the taxable value is uncapped in the year following a property’s sale in the open market, i.e. any reasonable purchaser should expect to be taxed based on the Assessed Value regardless of the relationship between the Assessed and Capped Values. Tax Comparables The following chart presents tax comparables considered in our appraisal: Capital Expenditures Item Description Cost Parking Structure Repairs $3,000,000 Main Lobby Retrofit $500,000 Combined Total $3,500,000 Entrepreneurial Profit @ 10.00% $350,000 Subtotal $3,850,000 Total Near-Term Capital Improvements $3,850,000 Compiled by Newmark Taxes and Assessments Tax Year 2023 Tax Area: Pontiac Tax ID Component True Cash Value (SEVx2) Taxable Value (Current Tax) Assessed Value (SEV, Post Transfer) 14-32-227-002, 14-32-226-020 & 14-29-484-006 Main Building $4,626,800 $2,313,400 $2,313,400 Subtotal $4,626,800 $2,313,400 $2,313,400 Assessment Ratio @ 100% 100% General Tax Rate (per $1,000)55.1195 55.1195 Tax Subtotal $127,513 $127,513 Administrative Fees 1.00% $1,275 $1,275 Total Taxes $128,789 $128,789 per SF $0.33 $0.33 Compiled by Newmark SUBJECT PROPERTY ANALYSIS 36 31 E Hudson & 51111 Woodward Ave (Campus I and II) With very few functional and operational larger office buildings within the city of Pontiac, our search was expanded to include properties in our comparable locations of Oakland county. Subject Tax Conclusion Generally, it would be expected that a property’s assessment would increase as it is stabilized. With that, we note that assessments within the city of Pontiac are generally low, and a comparable stabilized asset (Epicentre) is presently reporting low assessment level. Still, a moderate increase in the pro-forma assessment (at $10.00 per square foot of Gross Building Area), placing the property in the upper middle portion of the range indicated by tax comparables, was incorporated in our pro-forma. Tax Year 2023 1 2 3 Subject (Actual) Property Name The Riker Building Epicentre Nine Mile Crossing 31 E Hudson & 51111 City, County, State Pntiac, Oakland, MI Southfield, Oakland, MI Southfield, Oakland, MI Pontiac, Oakland, MI Improvements SF 92,455 241,396 142,409 391,217 Total Assessed Value $669,890 $1,403,790 $2,340,500 $2,313,400 Assessed Value/SF $7.25 $5.82 $16.44 $5.91 Compiled by Newmark Tax Comparables Conclusion 2023 Total Assessed Value $2,313,400 $4,259,700 Total Assessed Value/SF $5.91 $10.89 Tax Rate (Per $1,000)55.1195 55.1195 Ad Valorem Taxes $127,513 $234,793 Administrative Fees (@1.00%) $1,275 $1,275 Direct Assessments $0 $0 Actual / Pro Forma Taxes $128,789 $236,068 per SF $0.33 $0.60 Reported Tax Delinquencies None None Tax Exemptions or Abatements None None Compiled by Newmark Ad Valorem Tax Analysis Subject History EXCESS LAND VALUATION 37 31 E Hudson & 51111 Woodward Ave (Campus I and II) Excess Land Valuation The subject includes 3.480 acres of excess land. The following summarizes the land parcels as they will be valued in this appraisal. Land Comparables Map Land Parcels Parcel Summary Associated APN(s) Classification Land Area (SF) Land Area (Acres) Site 1 14-32-227-002, 14-32-226-020 & 14-29-484-006 Primary Site 1 486,565 11.1700 Site 2 14-32-226- 021, 14-32-227-003, 14-29-484-003, 14-29-484-010 and 14-32-231-009 Excess Site 2 151,589 3.4800 638,154 14.6500 486,565 11.1700 0 0.0000 151,589 3.4800 Compiled by Newmark Total Gross Land Area Total Usable Land Area Total Surplus Land Area Total Excess Land Area EXCESS LAND VALUATION 38 31 E Hudson & 51111 Woodward Ave (Campus I and II) ANALYSIS OF LAND COMPARABLES Please note that the Shape adjustments applied reflected the fact that the subject’s excess land component represents several non-contiguous sites. Lastly, we note that Sites 6 & 7 of the subject included existing structures that would require demolition, and thus demolition costs were subtracted from the value of the underlying land to arrive at as is value for the excess land component. Subject Sale 1 Sale 2 Sale 3 Sale 4 Sale 5 Address 31 East Judson Street 800 Vanguard Drive 450 East Walton Boulevard 1272 Baldwin Avenue 791 Baldwin Avenue Cesar E. Chavez Avenue City, State Pontiac, MI Pontiac, MI Pontiac, MI Pontiac, MI Pontiac, MI Pontiac, MI Proposed Use Office Other Retail Commercial Retail Commercial Retail Commercial General Commercial Gross Acres 3.48 Acres 16.00 Acres 1.47 Acres 0.40 Acres 0.62 Acres 2.69 Acres Useable Land SF 151,589 SF 696,960 SF 64,033 SF 17,424 SF 27,007 SF 117,133 SF Shape/Topography Irregular/Level Irregular/Generally Level Rectangular/Level Rectangular/Level Rectangular/Gently Irregular/Generally Level Utilities Available Electricity, gas, sewer, Electricity, Gas, Sewer, Electricity, Gas, Sewer, Electricity, Gas, Sewer, Electricity, Gas, Sewer, Electricity, Gas, Sewer, Zoning C-2 MUD C-3 C-1 C-1, Local Business C-4, Suburban Business Transaction Type Closed Closed Closed Closed Closed Buyer Rise Pontiac Mi Llc Pontiac Dollar General Mid-Michigan Energy Greater Michigan Lawn Lesh Shkreli Seller Pontiac Community Pontiac Walton BTS Retail Construction Management Family Dollar Stores of MI Ronald Burns Interest Conveyed Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Sale Date May-22 Apr-22 Mar-22 Mar-19 Feb-19 Price $1,000,000 $265,000 $60,000 $50,000 $215,000 Adj. Sale Price $1,000,000 $265,000 $60,000 $50,000 $215,000 Price per Gross Land Acre $62,500 $180,272 $150,000 $80,646 $79,955 Price Per Gross Land SF $1.43 $4.14 $3.44 $1.85 $1.84 Compiled by Newmark Comparable Land Sales Summary Subject Sale 1 Sale 2 Sale 3 Sale 4 Sale 5 Address 31 East Judson Street 800 Vanguard Drive 450 East Walton Boulevard 1272 Baldwin Avenue 791 Baldwin Avenue Cesar E. Chavez Av enue City, State Pontiac, MI Pontiac, MI Pontiac, MI Pontiac, MI Pontiac, MI Pontiac, MI Gross Land SF 151,589 SF 696,960 SF 64,033 SF 17,424 SF 27,007 SF 117,133 SF Usable Land Area (Acres) 3.48 Acres 16.00 Acres 1.47 Acres 0.40 Acres 0.62 Acres 2.69 Acres Usable Land Area (SF) 151,589 SF 696,960 SF 64,033 SF 17,424 SF 27,007 SF 117,133 SF Transaction Type -- Closed Closed Closed Closed Closed Transaction Date -- May-22 Apr-22 Mar-22 Mar-19 Feb-19 Price Per Gross Land SF $1.43 $4.14 $3.44 $1.85 $1.84 Property Rights 0% 0% 0% 0% 0% Financing 0%0%0%0%0% Conditions of Sale 0% 0% 0% 0% 0% Market Conditions (Time) 6/30/2022 0% 0% 0% 3% 3% Subtotal (adjustments are multiplied)0% 0% 0% 3.0% 3.0% Transaction Adjusted Price Per Gross Land SF $1.43 $4.14 $3.44 $1.91 $1.90 Location/Access 0% -10% 0% 0% 10% Corner 0% 0% 0% 0% 0% Frontage 0% 0% 0% 0% 0% Size 20% 0% -5% -5% 0% Shape -10% -10% -10% -10% -10% Topography 0% 0% 0% 0% 0% Utilities 0% 0% 0% 0% 0% Zoning 0% 0% 0% 0% 0% Subtotal (adjustments are summed) 10% -20% -15% -15% 0% Gross Adjustment 30% 20% 15% 18% 23% Overall Adjustment 10.0% -20.0% -15.0% -12.45% 3.0% Indicated Price Per Gross Land SF $1.57 $3.31 $2.92 $1.62 $1.90 Compiled by Newmark Comparable Land Sales Adjustment Grid Transaction Adjustments Physical Adjustments EXCESS LAND VALUATION 39 31 E Hudson & 51111 Woodward Ave (Campus I and II) Useable Land SF 151,589 Comparable Sales Indications Range Average Unadjusted Price Per Gross Land SF $1.43 - $4.14 $2.54 Adjusted Price Per Gross Land SF $1.57 - $3.31 $2.26 Reconciled Value Per Gross Land SF $2.50 Total Indicated Value $378,973 Demolition of Existing Improvements -$100,000 Total Indicated Value $278,973 Rounded $279,000 Compiled by Newmark Land Value Conclusion SALES COMPARISON APPROACH 40 31 E Hudson & 51111 Woodward Ave (Campus I and II) Sales Comparison Approach The sales comparison approach value is derived by analyzing closed sales, listings, or pending sales of properties that are similar to the subject. The unit of comparison applied in this sales comparison analysis is price per square foot as it mirrors the primary comparison method used by market participants. Comparable Map SALES COMPARISON APPROACH 41 31 E Hudson & 51111 Woodward Ave (Campus I and II) The comparables represent the best data available for analysis. They were selected from recent sales of challenging office buildings, and represent both owner / user and speculative investor purchases, supplemented by an investment sale (Comparable 2). All of the comparables were selected based on the fact that they were reportedly primarily underwritten based on the price per square foot metrics. Summary of Adjustments / Adjustment Grid Based on our comparative analysis, the following table summarizes the adjustments warranted to each comparable. SALES COMPARISON APPROACH 42 31 E Hudson & 51111 Woodward Ave (Campus I and II) SALES COMPARISON APPROACH CONCLUSION – Prior to adjustments, the sales reflect a range of $46.07 to $96.97 per SF. – After adjustment, the range is narrowed to $55.28 to $93.05 per SF, with an average of $65.03 per SF. – The standard deviation was reduced from $18.35 prior to adjustments to $7.29 after, lending reasonable support to the adjustment methodology. Subject Sale 1 Sale 2 Sale 3 Sale 4 Sale 5 Property Name 31 E Hudson & 51111 Woodward Ave (Campus I Proposed Genesee Mental Health System (As Is) Crown Pointe Auburn Hills Corporate Center Confidential The Icon Address 31 East Judson Street & 51111 Woodward Avenue 1040 & 1042 West Bristol Road 25900 Greenfield Road 900 North Squirrel Road Confidential 200 Walker Street City Pontiac, MI Flint, MI Oak Park, MI Auburn Hills, MI Detroit, MI Detroit, MI Land Size 11.17 Acres 10.35 Acres 8.92 Acres 7.24 Acres 0.23 Acres 18.17 Acres Size (Rentable Area) 391,217 SF 178,000 SF 265,479 SF 120,000 SF 373,810 SF 420,000 SF Year Built (Renovated) 1981 1965 (2016) 1972 (2017) 2000 (2019) 1927 (1990) 2000 Transaction Type In-Contract In-Contract Closed Closed Closed Recorded Transaction Date May-23 Feb-23 Dec-22 Dec-22 Nov-21 Oct-20 Actual Sale Price $19,200,000 $8,200,000 $13,300,000 $7,157,500 $36,250,000 $34,000,000 Stabilized Sale Price $23,050,000 $8,200,000 $13,300,000 $7,157,500 $36,250,000 $34,000,000 Price per SF $58.92 $46.07 $50.10 $59.65 $96.97 $80.95 Transaction Adjustments Property Rights 0% 0% 0% 0% 0% Financing 0%0%0%0%0% Conditions of Sale 0% 0% 0% 0% 0% Market Conditions (Time)6/30/2022 0% 0% 0% 1% 3% Subtotal (adjustments are multiplied) 0% 0% 0% 1.0% 3.0% Transaction Adjusted Price per SF $46.07 $50.10 $59.65 $97.94 $83.38 Property Adjustments Location 10% -5% -15% -25% -10% Size -5% -5% -5% 0% 0% Age/Condition 0% 10% -10% 10% -10% Parking 5% 5% 5% 10% 5% Features/Amenities 0% 0% 0% 0% 0% Quality 10% 10% 0% 0% -10% Economic Characteristics 0% 0% 20% 0% 0% Other 0% 0% 0% 0% 0% Subtotal (adjustments are summed) 20% 15% -5% -5% -25% Gross Adjustment 30% 35% 55% 46% 38% Overall Adjustment 20.0% 15.0% -5.0% -4.05% -22.75% Indicated Price per SF $55.28 $57.61 $56.66 $93.05 $62.54 Compiled by Newmark Comparable Sales Adjustment Grid SALES COMPARISON APPROACH 43 31 E Hudson & 51111 Woodward Ave (Campus I and II) Based on the preceding analysis, the value indication by the sales comparison approach is as follows: Reconciliation of Price per SF Indication Value Indication Adjusted Value Range - Low $55.28 Adjusted Value Range - High $93.05 Reconciled As Stabilized Value - Price per SF Effective Date: 6/21/2023 $60.00 Subject Rentable Area (SF)391,217 Reconciled As Stabilized Value - Price per SF Analysis $23,473,020 Reconciled As Stabilized Value - Sales Comparison Approach Effective Date: 6/21/2023 $23,473,020 Value Indications As Stabilized Value Indication Prospective As Stabilized Value as of Date of Stabilization Effective Date: 6/21/2023 $23,473,020 Rounded $23,470,000 As Is Value Indication Reconciled As Stabilized Value Effective Date: 6/21/2023 $23,473,020 Stabilization Discount $0 Deferred Maintenance $0 Capital Expenditures ($3,850,000) As Is Value Effective Date: 6/21/2023 $19,623,020 Rounded $19,620,000 Compiled by Newmark Sales Comparison Approach Conclusion INCOME CAPITALIZATION APPROACH 44 31 E Hudson & 51111 Woodward Ave (Campus I and II) Income Capitalization Approach RENTABLE AREA SUMMARY RENT ROLL / TENANT OVERVIEW – As the chart illustrates, the prospective purchaser is expected to owner-occupy some 69.2% of the property; – Notably, the remainder of the occupancy is represented primarily by governmental- oriented users; although small non-governmental occupants are present, they occupy only a nominal portion of the subject. – Reimbursement structures for tenants in place include gross and modifier gross (gross + suite electric reimbursement) structures. – Consistent with the typical market practice, the prospective owner-user space was included at the concluded market rent; – Please note that the market rent in the chart above was converted from the concluded triple net terms to match terms of the leases in place to allow for direct comparison. Occupancy Summary Type of Space (MLA Name) Rentable Area (SF)% Total Leased (SF)% Leased Vacant (SF)% Vacant Contract Rent (PSF) Office 391,217 100.0% 391,217 100.0% 0 0.0% $10.52 Total 391,217 100.0% 391,217 100.0% 0 0.0% $10.52 Compiled by Newmark Suite Rentable Total Rem. Reimb. Number Tenant Area (SF) Start End Mos. Mos. MLA Category Method $ Total $ PSF $ Total $ PSF Various State of Michigan 67,332 Apr-13 Mar-24 132 9 Office Gross $919,312 $13.65 $1,043,646 $15.50 110 State of Michigan 5,700 Jul-13 Jun-23 120 0 Office Gross $77,824 $13.65 $79,800 $14.00 150 Hispanic ASD Services 3,000 Jun-22 Sep-25 39 27 Office Mg $37,210 $12.40 $36,000 $12.00 410 Michigan DHS 13,517 Sep-13 Oct-23 122 4 Office Gross $184,553 $13.65 $189,238 $14.00 500 Michigan DHS 25,317 May-17 Oct-32 186 112 Office Gross $345,664 $13.65 $413,933 $16.35 704 E-Community Outreach 200 Nov-22 Dec-23 14 6 Office Gross $2,731 $13.65 $3,600 $18.00 720 Oakland Literacy 4,113 Apr-23 Sep-28 66 63 Office Mg $51,015 $12.40 $24,678 $6.00 725 Gary Peters 800 Aug-22 Jan-27 53 42 Office Gross $10,923 $13.65 $16,680 $20.85 77 Vanstone Injury Law 350 Feb-23 Jan-24 12 7 Office Gross $4,779 $13.65 $4,200 $12.00 Future Owner Space (Oakland Co) 270,888 0 0 Office NNN $2,302,548 $8.50 $2,302,548 $8.50 Total Occupied 391,217 42 10 $3,936,559 $10.06 $4,114,323 $10.52 Total Total (Average) 391,217 42 10 $3,936,559 $10.06 $4,114,323 $10.52 Compiled by Newmark Rent Roll Lease Term Year 1 Market Rent Year 1 Contract Rent INCOME CAPITALIZATION APPROACH 45 31 E Hudson & 51111 Woodward Ave (Campus I and II) MARKET RENT ANALYSIS Comparable Map Due to the subject’s size and local market dynamics, it is implausible that it could be leased up via smaller tenants. This is consistent with the nature of the prospective acuisition, with the purchaser expected to owner-occupy majority of the property, as well as most substantive tenancy at the property. Furthermore, both the prospective purchaser / occupancy and the larger tenants in place represent governmental entities. With these considerations, the comparables were selected from available recent leases for larger spaces, with the emphasis placed on selecting propertis in shallow / secondary locations and / or governmental entity leases. No. Name Address Subject 31 E Hudson & 51111 Woodward Ave (Campus I and 31 East Judson Street & 51111 Woodward Avenue, 1 Change Healthcare 44000 Garfield Road, Clinton Township, MI 2 Whirlpool Customer Experience Center 553 Benson Road, Benton Harbor, MI 3 Fairlane North Technology Park 15500 Lundy Parkway Drive, Dearborn, MI 4 Marelli Office Building 26555 Northwestern Highway, Southfield, MI 5 Northfield Office Park I & II 5600 & 5700 Crooks Road, Troy, MI 6 DHHS Building 44777 North Gratiot Avenue, Clinton Township, MI Compiled by Newmark INCOME CAPITALIZATION APPROACH 46 31 E Hudson & 51111 Woodward Ave (Campus I and II) Analysis of Comparable Leases Please note that market-oriented triple net charges were used to convert full-service rate indicators to their triple net equivalent amounts. Office Space Subject Comparable 1 Comparable 2 Comparable 3 Comparable 4 Comparable 5 Comparable 6 Property Name 31 E Hudson & 51111 Woodward Ave (Campus Change Healthcare Whirlpool Customer Experience Center Fairlane North Technology Park Marelli Office Building Northfield Office Park I & II DHHS Building Address 31 East Judson Street & 51111 Woodward Avenue 44000 Garfield Road 553 Benson Road 15500 Lundy Parkway Drive 26555 Northwestern Highway 5600 & 5700 Crooks Road 44777 North Gratiot Avenue Lease Date Jan-21 Nov-20 Mar-19 Sep-20 Aug-21 Feb-20 Term (Mos.) 39 168 30 180 0 300 Size (SF) 63,560 85,158 75,244 188,000 1,265 62,728 Tenant Name Change Healthcare Whirpool Corporation The Automobile Club Marelli United States of America State of Michigan Base Rental Rate $16.25 $15.57 $11.50 $13.00 $20.41 $18.00 Effective Rental Rate $16.25 $15.57 $11.50 $13.00 $20.41 $18.00 Lease Reimbursement Method Modified Gross Absolute Net Triple Net Triple Net Full Service Modified Gross Financial Adjustments Expense Structure ($ PSF Adjustment) ($5.15) $0.00 $0.00 $0.00 ($5.15) ($5.15) Expense Structure -32% 0% 0% 0% -25% -29% Conditions of Lease 0%0%0%0%0%0% Market Conditions (Time) 6/30/2022 3% 3% 7% 4% 2% 5% Subtotal -30% 3% 7% 4% -24% -25% Financial Adjusted Rent Per SF $11.43 Physical Adjustments Location/Access/Exposure -20% 0% -10% -15% -20% -10% Size 0% 0% 0% 0% 0% 0% Age/Condition 0% -10% -10% -20% -10% -20% Parking 5%5%5%5%5%5% Features/Amenities 0% 0% 0% 0% 0% 0% Quality 0% -20% -10% -10% -10% -10% Economic Characteristics 0%0%0%0%0%0% Other 0% 0% 0% 0% 0% 0% Subtotal -15% -25% -25% -40% -35% -35% Overall Adjustment -40% -23% -20% -38% -50% -51% Adjusted Rent Per SF $9.72 $12.03 $9.23 $8.11 $10.12 $8.77 Range of Adjusted Rents $8.11 - $12.03 Average $9.66 Indicated Rent $8.50 Compiled by Newmark Comparable Leases Adjustment Grid INCOME CAPITALIZATION APPROACH 47 31 E Hudson & 51111 Woodward Ave (Campus I and II) MARKET RENT CONCLUSION With consideration of the subject’s challenging location, a conclusion near the bottom of the range indicated by the adjusted comparables was deemed reasonable and appropriate. GROSS INCOME ESTIMATE Potential Gross Rent Figures presented below reflect the 12-month period following the effective date of the appraisal. Please note that the chart above includes gross rents only, without consideration of the different reimbursement structures, and thus significantly overstates the difference between potential gross income based on contract and market rents. MLA Category Rentable SF Market Rent Measure Term (Mos.)Mos. Free Office Space: 391,217 $8.50 $/SF/Year Yes 84 0 Compiled by Newmark NNN Concluded Market Lease Terms Rent Escalations Reimbursement Method Leased Potential Rent At Contract Potential Rent At Market Contract as MLA Category SF Annual $/SF/Yr Annual $/SF/Yr % of Market Occupied Space Office Space: 391,217 $4,114,323 $10.52 $3,325,345 $8.50 123.7% Occupied Space Total 391,217 $4,114,323 $10.52 $3,325,345 $8.50 123.7% Vacant Space (at market rents) Office Space: 0 $0 $8.50 $0 $8.50 Vacant Space Total 0 $0 $0.00 $0 $0.00 Overall Total 391,217 $4,114,323 $10.52 $3,325,345 $8.50 Compiled by Newmark Potential Gross Rent INCOME CAPITALIZATION APPROACH 48 31 E Hudson & 51111 Woodward Ave (Campus I and II) Operating History – Note that our pro-forma incorporates the assumption that the vacant space at the subject is owner-occupied by the prospective purchaser, and thus our income pro- forma falls substantially above the historically reported totals. Vacancy & Collection Loss Allowance Vacancy Allowance The subject’s occupancy history is depicted as follows: Period Length TTM Newmark Period Ending 4/30/2023 Projection Occupancy 30.8% 87.5% SF 391,217 391,217 Office Income Total $ $/SF Total $ $/SF Potential Base Rent $1,834,910 $4.69 $4,114,323 $10.52 Lost Absorption / Turnover Rent $0 $0.00 $0 $0.00 Free Rent $0 $0.00 $0 $0.00 Scheduled Base Rent $1,834,910 $4.69 $4,114,323 $10.52 Expense Recoveries $28,463 $0.07 $1,404,891 $3.59 Total Tenant Revenue $1,863,373 $4.76 $5,519,214 $14.11 Parking Income $0 $0.00 $0 $0.00 Other Income $0 $0.00 $0 $0.00 Potential Gross Income $0 $0.00 $5,519,214 $14.11 Vacancy Allowance $0 $0.00 ($689,902) ($1.76) Collection Allowance $0 $0.00 ($55,192) ($0.14) Effective Gross Income $1,863,373 $4.76 $4,774,120 $12.20 Operating Expenses Total $ $/SF Total $ $/SF Real Estate Taxes $113,801 $0.29 $236,068 $0.60 Insurance $115,180 $0.29 $117,365 $0.30 Management $0 $0.00 $167,094 $0.43 Other Expenses $47,058 $0.12 $39,122 $0.10 Common Area Maintenance $1,135,750 $2.90 $1,662,672 $4.25 Replacement Reserves $0 $0.00 $78,243 $0.20 Total Operating Expenses $1,411,789 $3.61 $2,300,564 $5.88 Operating Expense Ratio 75.8% 48.2% Net Operating Income $451,584 $1.15 $2,473,555 $6.32 Compiled by Newmark Operating History and Projections INCOME CAPITALIZATION APPROACH 49 31 E Hudson & 51111 Woodward Ave (Campus I and II) The vacancy estimate for the subject was previously developed in the market analysis section of this report. Collection Allowance – Based on available data and analysis, the concluded collection loss allowance is 1.00%, typical of the subject’s market. Combined Vacancy and Collection Loss Conclusion – Based on this analysis, the total stabilized vacancy and collection loss allowance for the subject is 13.50%. Effective Gross Income Vacancy Allowance Subject % of PGI $/SF Total Newmark Projection 12.50% $1.76 $689,902 Compiled by Newmark Collection Allowance Subject % of PGI $/SF Total Newmark Projection 1.00% $0.14 $55,192 Compiled by Newmark Effective Gross Income Subject $/SF Total TTM Months Ending Apr-2023 $4.76 $1,863,373 Newmark Projection $12.20 $4,774,120 Compiled by Newmark INCOME CAPITALIZATION APPROACH 50 31 E Hudson & 51111 Woodward Ave (Campus I and II) OPERATING EXPENSE ANALYSIS – As was previously noted, the subject’s owner benefits from the ground-leased Phoenix Center parking garage; however, also bearing the maintenance obligations for the parking deck; – This was reflected in our expense comparable selection, with the emphasis placed on selecting properties with associated covered parking decks on site, as well as our common area maintenance expense conclusions. NET OPERATING INCOME DIRECT CAPITALIZATION The following subsections represent different techniques for deriving an overall capitalization rate. Comp 1 Comp 2 Comp 3 Comp 4 Year Built 1983 1986 1989/r2015 1986 SF 236,921 349,643 241,547 734,156 391,217 391,217 Operating Data Type Actual Actual Actual Actual Actual Newmark Year 2022 2021 2021 2021 2023 Projection Effective Gross Office Income Per Square Foot $19.59 $12.11 $17.53 $15.15 $4.76 $12.20 Operating Expenses Per SF Real Estate Taxes $2.01 $1.78 $2.58 $1.76 $0.29 $0.60 Insurance $0.23 $0.13 $0.19 $0.25 $0.29 $0.30 Management $0.75 $0.83 $1.21 $0.46 $0.43 Other Expenses $0.01 $0.38 $0.55 $0.03 $0.12 $0.10 Common Area Maintenance $4.42 $2.74 $3.97 $4.15 $2.90 $4.25 Replacement Reserves $0.20 Total Operating Expenses Per SF $7.42 $5.88 $8.50 $6.66 $3.61 $5.88 Net Operating Income Per SF $12.17 $6.23 $9.03 $8.49 $1.15 $6.32 Operating Expense KPIs (% of EGI) Management 3.83% 6.89% 6.89% 3.04% 3.50% Operating Expense Ratio (% of EGI) 37.90% 48.52% 48.52% 43.96% 75.77% 48.19% Net Operating Income (% of EGI) 62.10% 51.48% 51.48% 56.04% 24.23% 51.81% Compiled by Newmark Expense Analysis Per SF Subject Historical and Projections 1981 Net Operating Income Source % of EGI $/SF Total Comparables Low 51.5% $6.23 Comparables High 62.1% $12.17 Comparables Average 55.3% $8.98 Subject 2023 (Actual Operations) 24.2% $1.15 $451,584 Newmark Projection 51.8% $6.32 $2,473,555 Compiled by Newmark INCOME CAPITALIZATION APPROACH 51 31 E Hudson & 51111 Woodward Ave (Campus I and II) Comparable Sales As most of the primary sales were underwritten on the basis of price per square foot, we considered the following supplemental data to help estimate appropriate capitalization rate for the subject: Investor Surveys No. Property Location Yr. Built Sale Date Rentable Area Occ. % Price per SF OAR Secondary Cap Rate Sales 6 555 W. Crosstown Pky., Kalamazoo, MI 1985 Feb-2023 46,842 99% $133 8.40% 7 2601 and 2701 Cambridge Court, Auburn Hills, MI 1987 Oct-2022 278,181 61% $93 7.72% 8 700 & 800 Tower Drive, Troy, MI 1987 Aug-2022 459,594 95% $129 8.37% 9 Troy, MI 1986 Jun-2022 734,156 76% $70 8.46% 10 5800 Mercury Drive and 17000 Federal Drive, Dearborn, MI 1994 Sep-2021 175,215 100% $77 11.21% Average (Mean) Cap Rate:8.83% Compiled by Newmark Comparable Office Sales Summary INCOME CAPITALIZATION APPROACH 52 31 E Hudson & 51111 Woodward Ave (Campus I and II) Band of Investment Mortgage/Equity Assumptions Loan to Value Ratio 60% Interest Rate 6.50% Amortization (Years) 25 Mortgage Constant 0.0810 Equity Ratio 40% Equity Dividend Rate 14.00% Weighted Average Of Mortgage/Equity Requirements Mortgage Requirement 60% x 8.10% = 4.86% Equity Requirement 40% x 14.00% = 5.60% Indicated Capitalization Rate (Rounded) 10.50% Debt Coverage Ratio Analysis Debt Coverage Ratio 1.40 Loan to Value Ratio 60% Mortgage Constant 0.0810 Indicated Capitalization Rate (Debt Coverage Ratio Method) 6.81% Compiled by Newmark Band of Investment INCOME CAPITALIZATION APPROACH 53 31 E Hudson & 51111 Woodward Ave (Campus I and II) Capitalization Rate Conclusion Investors expect, and the data is showing, that capitalization rates are increasing. We have also heard of specific transaction examples including repricing of deals and simply offers at lower levels owing to the increased cost of capital – not to mention other economic factors such as recession, supply chain, COVID-19, and global crises, etc. It is important to acknowledge that there is a dearth of transactions in the marketplace making it more difficult to determine the impact on cap rates. Brokers and capital markets professionals are reporting significant disconnects between buyers and sellers – as much as 30% - and this is reducing the transaction activity. In addition, various investor surveys and aggregate reporting data may not necessarily reflect investor attitudes today since data could be 2-3 months old or more. We have given significant reliance to our interviews with market participants. We have also taken the following into consideration in the selection of our concluded capitalization rate. – Investors have become selective, cautious, and tentative as cost of capital has increased. – Volatility in the market has led to the disconnect between buyers and sellers thus reducing transaction volume – both in number of sales and overall price volume. – Although the number of transactions has dropped precipitously, market participants are saying that price discovery is demonstrating that values are trending lower. – Negative leverage is present in the market and this cannot be sustained which is putting downward pressure on values. – Brokers report re-trades are occurring at lower pricing and higher indicated capitalization rates. Strengths 1. The subject represents one of the most visible office projects in the city of Pontiac 2. The subject has been well maintained, with the structure and mechanical plant in generally good condition. Even most tenant spaces are likely to require only moderate retrofit. 3. The subject has access to Phoenix Center, which provides parking for the subject at present, which is generally regarded as an appealing amenity 4. Existing tenancy comprises primarily governmental uses, a tenant base for which the subject is suited and which aligns well with the intended County occupancy, while providing marketable tenancy to the ownership Key Value Considerations INCOME CAPITALIZATION APPROACH 54 31 E Hudson & 51111 Woodward Ave (Campus I and II) Direct Capitalization Summary Valuation of the subject by direct capitalization is shown in the table immediately following. Risk Factors 1. Pontiac remains an only secondary / tertiary market 2. Phoenix Center is reportedly in need of substantial renovations 3. Governmental leases include provisions for early termination (typical of the tenant type) 4. The recent increases in interest rates are applying pressure to real estate prices across all asset classes. ESG+R 1. Heat Stress is at the medium risk threshold category 2. The subject is not located in a flood zone 3. The property is not LEED certified 4. Based on our research, there are no local ESG laws that affect the subject property National Trends and Uncertainties 1. Federal Reserve interest rate increases and associated effects on cost of capital and investment rates along with credit tightening have impaired transaction volumes. 2. Despite positives such as a healthy job market, at least a mild recession is still expected later this year. 3. Consumer spending and robust job growth have so far kept the economy growing in spite of high inflation and interest rate increases, as well as bank closures. 4. Easing of inflation, consumer spending, and continued job growth have so far kept the economy growing in spite of interest rate increases and bank s ystem stress. Source Indication Comparable Sales 7.72% - 11.21% Investor Surveys 7.00% - 8.50% Band of Investment 10.50% Debt Coverage Ratio Analysis 6.81% Concluded Going-In Capitalization Rate 10.50% Compiled by Newmark Capitalization Rate Conclusion INCOME CAPITALIZATION APPROACH 55 31 E Hudson & 51111 Woodward Ave (Campus I and II) Summary of Stabilized Net Operating Income Item Description % of Income $ / SF Total $ Office Income 0 391,217 SF Potential Base Rent $10.52 $4,114,323 Lost Absorption / Turnover Rent $0.00 $0 Free Rent $0.00 $0 Scheduled Base Rent $10.52 $4,114,323 Expense Recoveries $3.59 $1,404,891 Total Tenant Revenue $14.11 $5,519,214 Parking Income $0.00 $0 Other Income $0.00 $0 Potential Gross Income $14.11 $5,519,214 Vacancy Allowance -12.50% ($1.76) ($689,902) Collection Allowance -1.00% ($0.14) ($55,192) Effective Gross Income $12.20 $4,774,120 Operating Expenses 391,217 SF Real Estate Taxes $0.60 $236,068 Insurance $0.30 $117,365 Management 3.50% $0.43 $167,094 Other Expenses $0.10 $39,122 Common Area Maintenance $4.25 $1,662,672 Replacement Reserves $0.20 $78,243 Total Operating Expenses 48.19% $5.88 $2,300,564 Net Operating Income $6.32 $2,473,555 Income Capitalization Approach Direct Capitalization Method $ / SF Total $ Stabilized Net Operating Income $6.32 $2,473,555 Overall Capitalization Rate 10.50% As Stabilized Value Effective Date: $23,557,671 Rounded $60.22 $23,560,000 Value $24,735,554 $24,132,248 $23,557,671 $23,009,818 $22,486,867 As Is As Stabilized Value as of Current Date Effective Date: $23,557,671 Deferred Maintenance $0 Value of TI Amortization $0 Near Term Capital Expenses ($3,850,000) As Is Value Effective Date: $19,707,671 Rounded $50.38 $19,710,000 Compiled by Newmark Value Indication 6/21/2023 6/21/2023 10.25% 10.50% 10.75% 11.00% 6/21/2023 OAR 10.00% Valuation Matrix RECONCILIATION OF VALUE 56 31 E Hudson & 51111 Woodward Ave (Campus I and II) Reconciliation of Value The values indicated by our analyses are as follows: Market Value Premise As Is As of Date: June 21, 2023 Cost Approach: Not Used Sales Comparison Approach: $19,620,000 Income Capitalization Approach: $19,710,000 Market Value Conclusion $19,600,000 Compiled by Newmark Market Value Indications Value Conclusions Appraisal Premise Interest Appraised Date of Value Value Conclusion Market Value "As Is" Leased Fee 6/21/2023 $19,600,000 Value of Excess Land Excess Site 2 3.480 Acres Fee Simple 6/21/2023 $279,000 * Excess land is not included in the final value conclusions Compiled by Newmark 1. It was assumed that the reported parking structure retrofit costs are sufficient to cure any outstanding deferred maintenance 2. It was assumed that Oakland County occupies all of the available space subsequent to the prospective sale. 1. None Compiled by Newmark Extraordinary Assumptions and Hypothetical Conditions An extraordinary assumption is defined in USPAP as an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions. The value conclusions are subject to the following extraordinary assumptions that may affect the assignment results. A hypothetical condition is defined in USPAP as a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. The value conclusions are based on the following hypothetical conditions that may affect the assignment results. The use of these extraordinary assumptions might have affected assignment results. ASSUMPTIONS AND LIMITING CONDITIONS 57 31 E Hudson & 51111 Woodward Ave (Campus I and II) Assumptions and Limiting Conditions The Appraisal contained in this Report (herein “Report”) is subject to the following assumptions and limiting conditions: 1. Unless otherwise stated in this report, title to the property which is the subject of this report (herein “Property”) is assumed to be good and marketable and free and clear of all liens and encumbrances and that there are no recorded or unrecorded matters or exceptions to title that would adversely affect marketability or value. No responsibility is assumed for the legal description, zoning, condition of title or any matters which are legal in nature or otherwise require expertise other than that of a professional real estate appraiser. This report shall not constitute a survey of the Property. 2. Unless otherwise stated in this report, it is assumed: that the improvements on the Property are structurally sound, seismically safe and code conforming; that all building systems (mechanical/electrical, HVAC, elevator, plumbing, etc.) are in good working order with no major deferred maintenance or repair required; that the roof and exterior are in good condition and free from intrusion by the elements; that the Property and improvements conform to all applicable local, state, and federal laws, codes, ordinances and regulations including environmental laws and regulations. No responsibility is assumed for soil or subsoil conditions or engineering or structural matters. The Property is appraised assuming that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimates contained in this report is based, unless otherwise stated. The physical condition of the Property reflected in this report is solely based on a visual inspection as typically conducted by a professional appraiser not someone with engineering expertise. Responsible ownership and competent property management are assumed. 3. Unless otherwise stated in this report, this report did not take into consideration the existence of asbestos, PCB transformers or other toxic, hazardous, or contaminated substances or underground storage tanks, or the cost of encapsulation, removal or remediation thereof. Real estate appraisers are not qualified to detect such substances. The presence of substances such as asbestos, urea formaldehyde foam insulation, contaminated groundwater or other potentially hazardous materials and substances may adversely affect the value of the Property. Unless otherwise stated in this report, the ASSUMPTIONS AND LIMITING CONDITIONS 58 31 E Hudson & 51111 Woodward Ave (Campus I and II) opinion of value is predicated on the assumption that there is no such material or substances at, on or in the Property. 4. All statements of fact contained in this report as a basis of the analyses, opinions, and conclusions herein are true and correct to the best of the appraiser's actual knowledge and belief. The appraiser is entitled to and relies upon the accuracy of information and material furnished by the owner of the Property or owner’s representatives and on information and data provided by sources upon which members of the appraisal profession typically rely and that are deemed to be reliable by such members. Such information and data obtained from third party sources are assumed to be reliable and have not been independently verified. No warranty is made as to the accuracy of any of such information and data. Any material error in any of the said information or data could have a substantial impact on the conclusions of this Report. The appraiser reserves the right to amend conclusions reported if made aware of any such error. 5. The opinion of value stated in this report is only as of the date of value stated in this report. An appraisal is inherently subjective and the conclusions stated apply only as of said date of value, and no representation is made as to the effect of subsequent events. This report speaks only as of the date hereof. 6. Any projected cash flows included in the analysis are forecasts of estimated future operating characteristics and are predicated on the information and assumptions contained within this report. Any projections of income, expenses and economic conditions utilized in this report are not predictions of the future. Rather, they are estimates of market expectations of future income and expenses. The achievement of any financial projections will be affected by fluctuating economic conditions and is dependent upon other future occurrences that cannot be assured. Actual results may vary from the projections considered herein. There is no warranty or assurances that these forecasts will occur. Projections may be affected by circumstances beyond anyone’s knowledge or control. Any income and expense estimates contained in this report are used only for the purpose of estimating value and do not constitute predictions of future operating results. 7. The analyses contained in this report may necessarily incorporate numerous estimates and assumptions regarding Property performance, general and local business and economic conditions, the absence of material changes in the competitive environment and other matters. Some estimates or assumptions, however, inevitably will not materialize, and unanticipated events and circumstances may occur; therefore, actual results achieved during the period covered by the analysis will vary from estimates, and the variations may be material. ASSUMPTIONS AND LIMITING CONDITIONS 59 31 E Hudson & 51111 Woodward Ave (Campus I and II) 8. All prospective value opinions presented in this report are estimates and forecasts which are prospective in nature and are subject to considerable risk and uncertainty. In addition to the contingencies noted in the preceding paragraphs, several events may occur that could substantially alter the outcome of the estimates such as, but not limited to changes in the economy, interest rates, capitalization rates, behavior of consumers, investors and lenders, fire and other physical destruction, changes in title or conveyances of easements and deed restrictions, etc. In making prospective estimates and forecasts, it is assumed that conditions reasonably foreseeable at the present time are consistent or similar with the future. 9. The allocations of value for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used. This report shall be considered only in its entirety. No part of this report shall be utilized separately or out of context. 10. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraiser, or any reference to the Appraisal Institute) shall be disseminated through advertising media, public relations media, news media or any other means of communication (including without limitation prospectuses, private offering memoranda and other offering material provided to prospective investors) without the prior written consent of the Firm. Possession of this report, or a copy hereof, does not carry with it the right of publication. 11. Client and any other Intended User identified herein should consider this report and the opinion of value contained herein as only one factor together with its own independent considerations and underwriting guidelines in making any decision or investment or taking any action regarding the Property. Client agrees that Firm shall not be responsible in any way for any decision of Client or any Intended User related to the Property or for the advice or services provided by any other advisors or contractors. The use of this report and the appraisal contained herein by anyone other than an Intended User identified herein, or for a use other than the Intended Use identified herein, is strictly prohibited. No party other than an Intended User identified herein may rely on this report and the appraisal contained herein. 12. Unless otherwise stated in the agreement to prepare this report, the appraiser shall not be required to participate in or prepare for or attend any judicial, arbitration, or administrative proceedings. 13. The Americans with Disabilities Act (ADA) became effective January 26, 1992. No survey or analysis of the Property has been made in connection with this report to determine whether the physical aspects of the improvements meet the ADA accessibility guidelines. No expertise in ADA issues is claimed, and the report renders no opinion regarding the ASSUMPTIONS AND LIMITING CONDITIONS 60 31 E Hudson & 51111 Woodward Ave (Campus I and II) Property’s compliance with ADA regulations. Inasmuch as compliance matches each owner’s financial ability with the cost to cure the non-conforming physical characteristics of a property, a specific study of both the owner’s financial ability and the cost to cure any deficiencies would be needed for the Department of Justice to determine compliance. 14. Acceptance and/or use of this report constitutes full acceptance of these Assumptions and Limiting Conditions and any others contained in this report, including any Extraordinary Assumptions and Hypothetical Conditions, and is subject to the terms and conditions contained in the agreement to prepare this report and full acceptance of any limitation of liability or claims contained therein. ADDENDA 31 E Hudson & 51111 Woodward Ave (Campus I and II) Addendum A Glossary of Terms ADDENDA 31 E Hudson & 51111 Woodward Ave (Campus I and II) The following definitions are derived from The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015).  Absorption Period: The actual or expected period required from the time a property, group of properties, or commodity is initially offered for lease, purchase, or use by its eventual users until all portions have been sold or stabilized occupancy has been achieved.  Absorption Rate: 1) Broadly, the rate at which vacant space in a property or group of properties for sale or lease has been or is expected to be successfully sold or leased over a specified period of time. 2) In subdivision analysis, the rate of sales of lots or units in a subdivision.  Ad Valorem Tax: A tax levied in proportion to the value of the thing(s) being taxed. Exclusive of exemptions, use-value assessment provisions, and the like, the property tax is an ad valorem tax. (International Association of Assessing Officers [IAAO])  Assessed Value: The value of a property according to the tax rolls in ad valorem taxation; may be higher or lower than market value, or based on an assessment ratio that is a percentage of market value.  Cash Equivalency: An analytical process in which the sale price of a transaction with nonmarket financing or financing with unusual conditions or incentives is converted into a price expressed in terms of cash or its equivalent.  Contract Rent: The actual rental income specified in a lease.  Disposition Value: The most probable price that a specified interest in property should bring under the following conditions: 1) Consummation of a sale within a specified time, which is shorter than the typical exposure time for such a property in that market. 2) The property is subjected to market conditions prevailing as of the date of valuation. 3) Both the buyer and seller are acting prudently and knowledgeably. 4) The seller is under compulsion to sell. 5) The buyer is typically motivated. 6) Both parties are acting in what they consider to be their best interests. 7) An adequate marketing effort will be made during the exposure time. 8) Payment will be made in cash in US dollars (or the local currency) or in terms of financial arrangements comparable thereto. 9) 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. This definition can also be modified to provide for valuation with specified financing terms.  Effective Rent: Total base rent, or minimum rent stipulated in a lease, over the specified lease term minus rent concessions; the rent that is effectively paid by a tenant net of financial concessions provided by a landlord. ADDENDA 31 E Hudson & 51111 Woodward Ave (Campus I and II)  Excess Land: Land that is not needed to serve or support the existing use. 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 has the potential to be sold separately and is valued separately. See also surplus land.  Excess Rent: The amount by which contract rent exceeds market rent at the time of the appraisal; created by a lease favorable to the landlord (lessor) and may reflect unusual management, unknowledgeable or unusually motivated parties, a lease execution in an earlier, stronger rental market, or an agreement of the parties.  Exposure Time: 1) The time a property remains on the market. 2) [The] estimated length of time that 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.  Extraordinary Assumption: An assumption, directly related to a specific assignment, as of the effective date of the assignment results, which, if found to be false, could alter the appraiser’s opinions or conclusions. See also hypothetical condition.  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.  Floor Area Ratio (FAR): The relationship between the above-ground floor area of a building, as described by the zoning or building code, and the area of the plot on which it stands; in planning and zoning, often expressed as a decimal, e.g., a ratio of 2.0 indicates that the permissible floor area of a building is twice the total land area.  Frictional Vacancy: The amount of vacant space needed in a market for its orderly operation. Frictional vacancy allows for move-ins and move-outs.  Full Service Lease: See gross lease.  General Vacancy: A method of calculating any remaining vacancy and collection loss considerations when using discounted cash flow (DCF) analysis, where turnover vacancy has been used as part of the income estimate. The combined effects of turnover vacancy and general vacancy relate to total vacancy and collection loss.  Going-Concern Premise: One of the premises under which the total assets of a business can be valued; the assumption that a company is expected to continue operating well into the future (usually indefinitely).  Going Concern Value: An outdated label for the market value of all the tangible and intangible assets of an established and operating business with an indefinite life, as if sold ADDENDA 31 E Hudson & 51111 Woodward Ave (Campus I and II) in aggregate; more accurately termed the market value of the going concern or market value of the total assets of the business.  Gross Building Area (GBA): 1) Total floor area of a building, excluding unenclosed areas, measured from the exterior of the walls of the above grade area. This includes mezzanines and basements if and when typically included in the market area of the type of property involved. 2) Gross leasable area plus all common areas. 3) For residential space, the total area of all floor levels measured from the exterior of the walls and including the superstructure and substructure basement; typically does not include garage space.  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 full-service lease.  Hypothetical Condition: 1) A condition that is presumed to be true when it is known to be false. (Appraisal Institute: The Standards of Valuation Practice [SVP]) 2) A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. See also extraordinary assumption.  Intended Users: 1) The party or parties the valuer intends will use the report. (SVP) 2) The client and any other party as identified, by name or type, as users of the appraisal or appraisal review report by the appraiser, based on communication with the client at the time of the assignment. (USPAP, 2020-2021 ed.)  Investment Value: 1) The value of a property 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. 2) The value of an asset to the owner or a prospective owner for individual investment or operational objectives. (International Valuation Standards [IVS])  Land-to-Building Ratio: The proportion of land area to gross building area; one of the factors determining comparability of properties.  Lease: A contract in which the rights to use and occupy land, space, or structures are transferred by the owner to another for a specified period of time in return for a specified rent.  Leased Fee Interest: The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires. ADDENDA 31 E Hudson & 51111 Woodward Ave (Campus I and II)  Leasehold Interest: The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease.  Lessee: One who has the right to occupancy and use of the property of another for a period of time according to a lease agreement.  Lessor: One who conveys the rights of occupancy and use to others under a lease agreement.  Liquidation Value: The most probable price that a specified interest in property should bring under the following conditions: 1) Consummation of a sale within a short time period. 2) The property is subjected to market conditions prevailing as of the date of valuation. 3) Both the buyer and seller are acting prudently and knowledgeably. 4) The seller is under extreme compulsion to sell. 5) The buyer is typically motivated. 6) Both parties are acting in what they consider to be their best interests. 7) A normal marketing effort is not possible due to the brief exposure time. 8) Payment will be made in cash in US dollars (or the local currency) or in terms of financial arrangements comparable thereto. 9) 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. This definition can also be modified to provide for valuation with specified financing terms.  Market Rent: The most probable rent that a property should bring in a competitive and open market reflecting the conditions and restrictions of a specified lease agreement, including the rental adjustment and revaluation, permitted uses, use restrictions, expense obligations, term, concessions, renewal and purchase options, and tenant improvements (TIs).  Market Value: A type of value that is the major focus of most real property appraisal assignments. Both economic and legal definitions of market value have been developed and refined, such as the following. 1) The most widely accepted components of market value are incorporated in the following definition: The most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue duress. 2) Market value is described, not defined, in the Uniform Standards of Professional Appraisal Practice (USPAP) as follows: A type of value, stated as an opinion, that presumes the transfer of a property (i.e., a right of ownership or a bundle of ADDENDA 31 E Hudson & 51111 Woodward Ave (Campus I and II) such rights), as of a certain date, under specific conditions set forth in the definition of the term identified by the appraiser as applicable in an appraisal. 1  Market Value of the Going Concern: The market value of an established and operating business including the real property, personal property, financial assets, and the intangible assets of the business.  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 an appraisal. Marketing time differs from exposure time, which is always presumed to precede the effective date of an appraisal.  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.  Net Lease: A lease in which the landlord passes on all expenses to the tenant. See also gross lease; modified gross lease.  Net Net Net Lease: An alternative term for a type of net lease. In some markets, a net net net lease is defined as 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 lease, triple net lease, or fully net lease.  Occupancy Rate: 1) The relationship or ratio between the potential income from the currently rented units in a property and the income that would be received if all the units were occupied. 2) The ratio of occupied space to total rentable space in a building.  Overage Rent: The percentage rent paid over and above the guaranteed minimum rent or base rent; calculated as a percentage of sales in excess of a specified breakpoint sales volume.  Percentage Rent: Rental income received in accordance with the terms of a percentage lease; typically derived from retail store and restaurant tenants and based on a certain percentage of their gross sales. 1 The actual definition of value used for this appraisal is contained within the body of the report. The definition of market value given above is general in viewpoint and is only provided for amplification. ADDENDA 31 E Hudson & 51111 Woodward Ave (Campus I and II)  Prospective Opinion of Value: A value opinion effective as of a specified future date. The term does not define a type of value. Instead, it identifies a value opinion as being effective at some specific future date. An opinion of value as of a prospective date is frequently sought in connection with projects that are proposed, under construction, or under conversion to a new use, or those that have not yet achieved sellout or a stabilized level of long-term occupancy.  Rentable Area: For office or retail buildings, the tenant’s pro rata portion of the entire office floor, excluding elements of the building that penetrate through the floor to the areas below. The rentable area of a floor is computed by measuring to the inside finished surface of the dominant portion of the permanent building walls, excluding any major vertical penetrations of the floor. Alternatively, the amount of space on which the rent is based; calculated according to local practice.  Retrospective Value Opinion: A value opinion effective as of a specified historical date. The term retrospective 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.”  Shell Rent: The typical rent paid for retail, office, or industrial tenant space based on minimal “shell” interior finishes (called vanilla finish or white wall finish in some areas). Usually the landlord delivers the main building shell space or some minimum level of interior build-out, and the tenant completes the interior finish, which can include wall, ceiling, and floor finishes, mechanical systems, interior electricity, and plumbing. Typically these are long-term leases with tenants paying all or most property expenses.  Surplus Land: Land that is not currently needed to support the existing use but cannot be separated from the property and sold off for another use. Surplus land does not have an independent highest and best use and may or may not contribute value to the improved parcel. See also excess land.  Turnover Vacancy: A method of calculating vacancy allowance that is estimated or considered as part of the potential income estimate when using discounted cash flow (DCF) analysis. As units or suites turn over and are available for re-leasing, the periodic vacancy time frame (vacancy window) to release the space is considered.  Usable Area: 1) For office buildings, the actual occupiable area of a floor or an office space; computed by measuring from the finished surface of the office side of corridor and other permanent walls, to the center of partitions that separate the office from adjoining usable areas, and to the inside finished surface of the dominant portion of the permanent outer building walls. Sometimes called net building area or net floor area. See also floor ADDENDA 31 E Hudson & 51111 Woodward Ave (Campus I and II) area. 2) The area that is actually used by the tenants measured from the inside of the exterior walls to the inside of walls separating the space from hallways and common areas.  Use Value: 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. Use value may or may not be equal to market value but is different conceptually. See also value in use.  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. See also use value.  Value Indication: A valuer’s conclusion of value resulting from the application of an approach to value, e.g., the value indication by the sales comparison approach. ADDENDA 31 E Hudson & 51111 Woodward Ave (Campus I and II) Addendum B Engagement Letter NEWMARK VALUATION & ADVISORY 27725 Stansbury Blvd., Suite 300 | Farmington Hills, MI PHONE: (248) 871-2327 | WEB: www.nmrk.com June 9, 2023 Andy Gutman President OAKLAND COUNTY C/O NAI FARMBAN 28400 Northwestern Highway 4th Floor Southfield, MI 48034 Phone: 248.351.4395 Email: gutman@farbman.com Re: Physical inspection report for the property described as: Campus I & II (and additional sites), 31 E Judson Street and 51111 Woodward Avenue, Pontiac, MI (and additional sites) (“Property”) Dear Mr. Gutman: Newmark Valuation & Advisory, LLC (“Firm”) agrees to provide Oakland County c/o NAI Farmban (“Client”) an appraisal of the above-referenced Property in accordance with, and subject to, the terms and conditions set forth below and in the attached Schedules (collectively, “Agreement”). APPRAISAL FEE: $5,000.00 (inclusive of expenses). ADDITIONAL HOURLY FEES: Should court time and preparation be required, it will be billed at $400.00/hr plus expenses. RETAINER: Full retainer REPORT DELIVERABLES: The appraisal, draft and/or final, shall be delivered in electronic format (typically, pdf). One original hard copy of the final appraisal will be provided to Client upon request. COMMENCEMENT AND DELIVERY DATE: Delivery is as follows: Draft appraisal report: one (1) week Final appraisal report: three (3) days following approval and request for final report Andy Gutman OAKLAND COUNTY C/O NAI FARMBAN June 9, 2023 PAGE 2 OF 11 27725 Stansbury Blvd., Suite 300 | Farmington Hills, MI PHONE: (248) 871-2327 | WEB: www.nmrk.com The appraisal process will commence upon receipt by the Firm of (i) this Agreement, signed by Client, (ii) the retainer, and (iii) information and materials identified in Schedule “B.” The appraisal process will conclude upon delivery of the final appraisal report, unless terminated sooner by the Firm or Client or as provided herein. REPORT TYPE: Restricted Appraisal Report VALUATION PREMISE: Market Value Assuming Non-Cannabis Reuse, As Is Market Value, As Complete Market Value INTEREST IN THE PROPERTY APPRAISED: Leased Fee Interest DATE(S) OF VALUE: Current as of: the Date of Inspection INTENDED USER(S): Intended users of the appraisal include only Client (“Intended User(s)”), and no other party is permitted to use or rely on the appraisal. The identification of Intended User(s) of the appraisal is to determine the type and extent of research, analysis and reporting appropriate for the assignment. Designation of a party other than Client as an Intended User is not intended to confer upon such party any rights under this Agreement. INTENDED USE: The intended use of the appraisal is solely for internal business decisions (“Intended Use”) and no other use. RELIANCE LANGUAGE: None GUIDELINES: The analyses, opinions and conclusions are to be developed based on, and the appraisal will be prepared in conformance with the Uniform Standards of Professional Appraisal Practice (USPAP) as published by the Appraisal Foundation. SCOPE OF WORK: The appraiser will use and properly apply all applicable and appropriate approaches to value sufficient to produce credible assignment results. The scope of the analysis will be appropriate for the appraisal problem. ASSUMPTIONS/ LIMITING CONDITIONS: The appraisal will be subject to Firm’s standard Assumptions and Limiting Conditions, which will be incorporated into the appraisal report. In addition, the appraisal may be subject to, and the appraisal report may contain, Extraordinary Assumptions and Hypothetical Conditions. ACCEPTANCE: This shall constitute a binding agreement only if countersigned by the Client, or by an officer, director or other representative of Client who, by Andy Gutman OAKLAND COUNTY C/O NAI FARMBAN June 9, 2023 PAGE 3 OF 11 27725 Stansbury Blvd., Suite 300 | Farmington Hills, MI PHONE: (248) 871-2327 | WEB: www.nmrk.com signing and accepting this Agreement, represents and warrants that he/she is authorized by Client to do so. PAYMENT: Client will be invoiced the appraisal fee (and any expenses) which will be earned in full upon initial delivery of the appraisal report (draft or final), with such appraisal fee (and expenses) payable within 30 days of invoicing. Payment of the fee is not contingent upon any predetermined value or on an action or event resulting from the analysis, opinions, conclusions or use of the appraisal. CHANGES TO THE AGREEMENT: Any significant changes to the assignment as outlined in this Agreement, such as the identity of the Client, Intended User, or Intended Use, will require the preparation and execution of a new agreement. CANCELLATION OF ASSIGNMENT: Client may cancel this Agreement at any time prior to the Firm’s delivery of the appraisal upon written notification to the Firm. Client shall pay Firm for all work completed on the assignment prior to Firm’s receipt of such written cancellation notice, unless otherwise agreed upon by Firm and Client in writing. The Firm may withdraw without penalty or liability from the assignment(s) contemplated by the Agreement before completion or reporting if the Firm determines, in the Firm’s sole discretion, that incomplete information was provided to the Firm prior to the engagement, that Client or other parties have not or cannot provide documentation or information necessary to the Firm’s analysis or reporting, that conditions of the Property render the original scope of work inappropriate, that a conflict of interest has arisen, or that Client has not complied with its payment obligations under this Agreement. The Firm shall notify Client of such withdrawal in writing. NO THIRD-PARTY BENEFICIARIES: Nothing in the Agreement shall create a contractual relationship or any legal duty between Firm or Client and any third party, nor any cause of action, right, or claim in favor of any third party and against Firm or Client. In addition, this Agreement is not intended to, and shall not be construed to, render any person or entity a third-party beneficiary of this Agreement. Client acknowledges and agrees that the appraisal report shall reflect the foregoing. In addition, the appraisal report shall state that no party other than an Intended User identified in the Agreement is entitled to rely upon the appraisal. Andy Gutman OAKLAND COUNTY C/O NAI FARMBAN June 9, 2023 PAGE 4 OF 11 27725 Stansbury Blvd., Suite 300 | Farmington Hills, MI PHONE: (248) 871-2327 | WEB: www.nmrk.com This Agreement may be rescinded by the Firm unless signed and returned to the undersigned within 10 days from the date hereof. If this Agreement correctly sets forth the Client’s understanding of the services to be rendered, and if the terms are satisfactory, please execute and return the Agreement together with any required retainer. Respectfully, Ilya Barskiy, MAI Executive Vice President Certified General Appraiser - State of MI License No. 1201071463 ilya.barskiy@nmrk.com (248) 871-2327 (734) 945-3360 Agreed: OAKLAND COUNTY C/O NAI FARMBAN SIGNATURE: PRINT NAME: TITLE: DATE: XXXX 6/15/2023 ANDREW GUTMAN Authorized Signer Acquisition LLC Andy Gutman OAKLAND COUNTY C/O NAI FARMBAN June 9, 2023 PAGE 5 OF 11 27725 Stansbury Blvd., Suite 300 | Farmington Hills, MI PHONE: (248) 871-2327 | WEB: www.nmrk.com Schedule “A” TERMS AND CONDITIONS ATTACHED TO AND A PART OF THE AGREEMENT DATED JUNE 9, 2023 TO PROVIDE APPRAISAL SERVICES FOR OAKLAND COUNTY C/O NAI FARMBAN 1. These Terms and Conditions are attached to and incorporated into the above referenced Agreement as though fully set forth in full therein. Capitalized terms if not defined herein shall have the same meaning as defined in the Agreement. 2. With respect to any appraisal report, use of or reliance on the appraisal by any party, regardless of whether the use or reliance is authorized or known by the Firm, constitutes acceptance of these Terms and Conditions as well as acceptance of all other appraisal statements, limiting conditions and assumptions stated in the Agreement and appraisal report. 3. It is assumed that there are no matters affecting the Property that would require the expertise of other professionals, such as engineers or an environmental consultant, for Firm to provide the appraisal. If such additional expertise is required, it shall be provided by other parties retained by Client at Client’s sole cost and expense. 4. Client acknowledges that the Firm is being retained as an independent contractor to provide the services described herein and nothing in this Agreement shall be deemed to create any other relationship between Firm and Client, including but not limited to an agency relationship. The parties neither intend nor have any expectation that any such relationship will arise as a matter of law or as a result of this Agreement. This assignment shall be deemed concluded and the services hereunder completed upon delivery of the appraisal described herein to Client. 5. All statements of fact contained in the appraisal report as a basis of the appraiser's analyses, opinions, and conclusions will be true and correct to the best of the appraiser's actual knowledge and belief. The appraiser is entitled to, and shall rely upon the accuracy of information and material furnished to the Firm by Client. Appraiser is also entitled to, and shall, rely on information provided by sources upon which members of the appraisal profession typically rely and that are deemed to be reliable by members of that profession without independent verification. 6. The Firm and the appraiser shall have no responsibility for legal matters, or questions or issues involving survey or title, soil or subsoil conditions, engineering, zoning, buildability, environmental contamination, structural matters, construction defects, material or methodology, or other similar technical matters with regarding the Property. Furthermore, the appraisal will not constitute a survey of the Property. 7. The appraisal and the data and information gathered in its preparation (other than the confidential data and information provided by Client) is and will remain, the property of the Firm. The Firm shall not violate the confidential nature of the appraiser-client relationship by improperly disclosing any confidential information furnished by Client to the Firm. Notwithstanding the foregoing, the Firm and the appraiser are authorized by Client to disclose all or any portion of the appraisal and appraisal report and the related data and information, including confidential data and information provided by Client, to appropriate representatives of the Appraisal Institute if such disclosure is required to comply with the Standards, Bylaws and Regulations of the Appraisal Institute, as well as, such disclosure as required by law and regulations, including compliance with a subpoena and licensing authority regulatory inquiries. The Firm is also authorized to include both confidential and non-confidential data assembled in the course of preparing the appraisal and which may be incorporated into the appraisal report in a database controlled by the Firm for the aggregation of such data and information to produce analytics and other metrics or products. 8. Unless specifically noted in the appraisal report, the appraisal will not take into consideration the possibility or probability of the existence of asbestos, PCB transformers, other toxic, hazardous, or contaminated substances Andy Gutman OAKLAND COUNTY C/O NAI FARMBAN June 9, 2023 PAGE 6 OF 11 27725 Stansbury Blvd., Suite 300 | Farmington Hills, MI PHONE: (248) 871-2327 | WEB: www.nmrk.com and/or underground storage tanks (hazardous material) at on or in the Property, or the cost of encapsulation, removal or remediation thereof. 9. Client shall indemnify, defend (by counsel to be selected by Firm), protect, and hold Firm and Firm’s appraisers, agents, employees, affiliates, representatives, successors and assigns (each, a “Firm Party”), free and harmless from any and all claims, liabilities, losses, penalties, fines, forfeitures, amounts paid in settlement, judgments, and all reasonable attorneys' fees and related litigation costs, fees and expenses incurred by the any of such indemnitees, which result from (i) any failure by Client or Client’s agents or representatives to provide Firm with complete and accurate information regarding the Property; (ii) any material breach by Client of the provisions of the Agreement; (iii) if delivery of the appraisal to a third party is permitted by the Firm, Client providing an incomplete copy of the appraisal to such third party; or (iv) arising from Client or Client’s agents or representatives providing a copy of the appraisal to a party not authorized by the Firm to receive such copy. 10. In preparing the appraisal, it is possible that the appraiser will discover conflicting information. In that event, appraiser will utilize information and data considered to be the most authoritative and for critical information will document the source. Information and data referred to may include, but is not limited to, legal descriptions; physical street addresses; assessor parcel numbers; property history; dimensions and areas of the site/land; dimensions and areas of the building improvements; physical unit counts; rent rolls; leases; lease abstracts; income and expense data; and any other related data. Any material discrepancy and/or error in any of the above data could have a substantial impact on the conclusions reported, and the Firm therefore reserves the right to amend conclusions reported if the Firm is made aware of any such discrepancy and/or error. 11. The appraisal may not be used, included or referenced, in whole or in part, in any offering or other materials without the prior written consent of the Firm, which consent may be conditioned upon the receipt by the Firm of an indemnity agreement, in form and content, satisfactory to Firm and provided by an indemnitor satisfactory to Firm. Client agrees to pay the fees of the Firm’s legal counsel for review of any materials which is the subject of the requested consent. Except as agreed by the Firm expressly in writing, the Firm disclaims liability to any party other than Client. 12. The Firm shall not provide a copy of the appraisal to, or disclose the results of the appraisal to, any party other than Client, unless Client authorizes same, except as provided in the Confidentiality Section of the ETHICS RULE of the Uniform Standards of Professional Appraisal Practice (USPAP) or as otherwise required by law or regulations. 13. Client and any other identified Intended User should consider the appraisal as only one factor together with its own independent considerations and underwriting guidelines in making any decision or investment or taking any action regarding the Property. Client agrees that Firm shall not be responsible in any way for any decision of Client or any Intended User related to the Property or for the advice or services provided by any other advisors or contractors. 14. Unless otherwise stated in this Agreement, Client agrees that the services pursuant to this Agreement shall not include participation in or preparation for, or attendance at, any legal, judicial, administrative, or arbitration proceeding relating to this assignment. In the event the Firm or any Firm Party is required, whether through the service of a subpoena or otherwise, to produce documents or participate in or prepare for any discovery, testimony or attendance, relating to the appraisal or this assignment, where the Firm or Firm Party is not a party to the action or proceedings involved, Client agrees to reimburse expenses incurred by the Firm or Firm Party, including attorney’s fees, in responding to such subpoena or other legal process and compensate the Firm therefor based upon the appraiser’s prevailing hourly or daily rate for providing services as an expert consultant or witness. 15. Except as expressly provided herein, Firm makes no representations or warranties to Client or to any other person or entity with respect to the appraisal and the services to be provided by Firm under this Agreement. To the maximum extent permitted under applicable law, in no event will the Firm or any Firm Party be liable to Client or any third party (regardless of whether such party’s claimed use or reliance on the appraisal was authorized by the Andy Gutman OAKLAND COUNTY C/O NAI FARMBAN June 9, 2023 PAGE 7 OF 11 27725 Stansbury Blvd., Suite 300 | Farmington Hills, MI PHONE: (248) 871-2327 | WEB: www.nmrk.com Firm or a Firm Party) for any indirect, special, exemplary, incidental, or consequential damages (including loss of profits) arising from or relating to this Agreement or the appraisal, even if such party knew or should have known of the possibility of, or could reasonably have prevented, such damages. In no event shall the total liability of the Firm or any Firm Party to Client or any third party (regardless of whether such party’s claimed use or reliance on the appraisal was authorized by the Firm or a Firm Party) arising from or relating to this Agreement or the appraisal, whether based on tort, contract, or any other legal theory, exceed the amount of fees paid to the Firm for the appraisal and the services described herein. Legal claims or causes of action relating to the appraisal are not assignable, except: (i) as the result of a merger, consolidation, sale or purchase of a legal entity, (ii) with regard to the collection of a bona fide existing debt for services but then only to the extent of the total compensation for the appraisal plus reasonable interest, or (iii) in the case of an appraisal performed in connection with the origination of a mortgage loan, as part of the transfer or sale of the mortgage before an event of default on the mortgage or note or its legal equivalent. 16. Federal banking regulations require banks and other lending institutions to engage appraisers where FIRREA compliant appraisals must be used in connection with mortgage loans or other transactions involving federally regulated lending institutions. In view of that requirement, the appraisal may not be accepted by a federally regulated financial institution. 17. In the event Client fails to make payments of any fees or sums when due and payable under this Agreement; then from the date due and payable until paid, the amount due and payable shall bear interest at the maximum rate permitted under the laws of the state in which the Property is located. If the Firm is required to undertake collection efforts including institution of legal action against Client relating to the Agreement, the Firm shall be entitled to recover attorney's fees, litigation expenses, and costs from Client. 18. To the extent permitted under applicable law, any legal action or lawsuit or other proceeding by Client or any Intended User of the appraisal against Firm or a Firm Party whether based in contract, tort, warranty, indemnity or otherwise, relating to the appraisal shall be commenced within two (2) years from the date of delivery of the appraisal to the claimant in such action or proceeding, unless the applicable law provides for a shorter period, and any such claimant waives the right to a jury in any such legal action or lawsuit or other proceeding. Notwithstanding the state of domicile or residency of either party to this Agreement, this Agreement shall be governed and construed under the laws of the state in which the Property is located, and venue for any action or proceeding arising out of this Agreement shall be deemed proper only in the court of competent jurisdiction located in the state in which the Property is located. 19. Throughout the performance of services under this Agreement, the Firm shall maintain at its sole cost and expense the following insurance: (a) Workers’ Compensation, so as to provide statutory benefits as required by the laws of each state within the United States in which the Firm’s services are being provided, and Employer’s Liability insurance with limits of liability of $1,000,000 each accident, $1,000,000 disease each employee and $1,000,000 disease policy limit covering all employees of the Firm engaged in the performance of such services. (b) Fidelity insurance or bond with a limit of $1,000,000 to insure the Firm against loss of its or Client’s assets caused from the dishonest acts of the Firm’s employees. (c) Professional Liability insurance with a limit of liability of $1,000,000 each claim and $1,000,000 aggregate, which limits may be provided by a combination of primary and excess policies. (d) Commercial General Liability insurance providing coverage against damages due to bodily injury (including death), property damage and personal and advertising injury arising in connection with the Firm’s services provided under this Agreement, which insurance coverage shall: (i) be occurrence-based; (ii) provide limits of liability in an amount of $1,000,000 each occurrence and $1,000,000 aggregate (including excess and/or umbrella limits), (iii) include at least those coverages generally included in the most current ISO Commercial Andy Gutman OAKLAND COUNTY C/O NAI FARMBAN June 9, 2023 PAGE 8 OF 11 27725 Stansbury Blvd., Suite 300 | Farmington Hills, MI PHONE: (248) 871-2327 | WEB: www.nmrk.com General Liability insurance policy form (or its equivalent); and (iv) include Client, and such other persons or entities as Client has identified in writing, as additional insureds solely with regard to claims arising out of this Agreement. (e) Commercial automobile liability for owned, hired and non-owned motor vehicles, with a $1,000,000 combined single limit. Andy Gutman OAKLAND COUNTY C/O NAI FARMBAN June 9, 2023 PAGE 9 OF 11 27725 Stansbury Blvd., Suite 300 | Farmington Hills, MI PHONE: (248) 871-2327 | WEB: www.nmrk.com Schedule “B” PROPERTY INFORMATION LIST ATTACHED TO AND A PART OF THE AGREEMENT DATED JUNE 9, 2023 TO PROVIDE APPRAISAL SERVICES FOR OAKLAND COUNTY C/O NAI FARMBAN The following information is requested to be delivered to the Firm so we can provide the proposed services and prepare the Appraisal within the agreed upon time frame. Please forward the physical data such as the site plan, previous engineering reports and/or property reports describing the physical attributes of the Property and all financial information such as rent roll and income and expense statements first as these items are the most time sensitive and should be received immediately to meet the time requirements of this assignment. If, at this time, you are certain you will not be providing any specific items noted below, please cross out the item and mark “NA” next to the item so that we will be notified that the information is not available and will not be forthcoming. 1. Please indicate whether Newmark is sales broker, leasing broker, mortgage broker or property manager for the subject property. 2. Site plan, if available. (Preferably, an AS BUILT PLAN showing an outline of building/s drawn to scale. Please do not send reductions so original scale may be used for measurement purposes. 3. Building plans, if available. 4. Prior engineering report or physical descriptions from prior appraisals or asset management report, if available. 5. Leasing brochures and/or other marketing materials, if available. 6. If the Property has been offered for sale within the last two years, a copy of the offering memorandum or investment book. 7. Past feasibility or market studies and economic impact studies as well as any relevant information collected from third party sources. 8. Agreements of Sale/Options to Buy (current or during last three years), if any. 9. Income and expense statements for the past three years plus year-to-date income and expense statements. 10. Operating budget for current and next year, if available. 11. Management contracts. 12. Copy of most recent real estate tax bill. Please advise if there has been a notice or inquiry by either the County Assessment Board or the School Board regarding the property assessment. Is there any pending litigation or negotiations with these parties that could result in an assessment increase or decrease? 13. Title report, Legal Description, or copy of deed. Provide a written statement of five-year history of legal property owner. Please advise, if there any deed restrictions or encumbrances, easements or cross easements. 14. Personal property inventory, if available. 15. Occupancy rates for the last three years, if not revealed in the financial statements. 16. Ground leases, if any. 17. Approximate actual construction costs, if built during the past three years. Andy Gutman OAKLAND COUNTY C/O NAI FARMBAN June 9, 2023 PAGE 10 OF 11 27725 Stansbury Blvd., Suite 300 | Farmington Hills, MI PHONE: (248) 871-2327 | WEB: www.nmrk.com 18. Environmental audits and studies disclosing any wetlands, hazardous wastes or other environmental conditions such as asbestos or radon. 19. List of any known major repairs and improvements needed. 20. Three-year history of capital improvements. 21. Name of contact person for the on-site physical inspection. FOR APARTMENT PROPERTY 22. Unit mix showing rentable area and asking rent by unit type 23. Scaled apartment unit plans showing layouts and measurements so that rentable area can be confirmed, if available. 24. Rent roll showing tenant name, apartment number, dates of leases and the type of apartment, asking/market rents for each apartment, and contractual rent for each apartment unit. (It would be greatly appreciated if you can provide the rent roll in Excel.) 25. Terms of leases and/rent roll for leased commercial space or roof top rentals. Copies of commercial leases are desirable. If any commercial leases provide for pass through of operating expenses over a base year stop, please provide the dollar amount of the base year stop. FOR INDUSTRIAL, OFFICE, RETAIL PROPERTY 26. Rent Roll (please sign and date) and copies of leases, including addenda and all amendments. Please indicate which leases may have early termination provisions, expansion and/or purchase options. Please identify any tenants who have initiated discussions to renew, terminate or renegotiate/modify their lease(s), or who have given notice to terminate. Proposed terms for such re-negotiations should be revealed. 27. Provide letters of intent to lease or other any outstanding lease proposals that have a reasonable likelihood of being finalized into executed leases. 28. Prior Argus files, if any. 29. List of outstanding leasing commissions brokers and terms of future payments. 30. Financial information such as Annual Statements or credit report/ratings on any major tenant in the building. 31. CAM and real estate tax reimbursement worksheets or listing of base year operating expenses, if applicable. 32. Three-year history of tenant retail sales, if available. FOR LODGING PROPERTY 33. Terms of leases if any and/rent roll for leased commercial space or roof top rentals. 34. ADR and Occupancy rates for the last three years, if not revealed in the financial statements. 35. Business Plan and Marketing Strategy, if any for the upcoming fiscal year. 36. Terms of franchise agreement and management agreement, if any. FOR RESIDENTIAL SUBDIVISION PROPERTY 37. Building plans for the proposed single family, townhouse, age-restricted, and condominium residences. Please do not send reductions so original scale may be used for measurement purposes. Andy Gutman OAKLAND COUNTY C/O NAI FARMBAN June 9, 2023 PAGE 11 OF 11 27725 Stansbury Blvd., Suite 300 | Farmington Hills, MI PHONE: (248) 871-2327 | WEB: www.nmrk.com 38. Market Surveys and Feasibility Analyses, if any, for the proposed development program. 39. Marketing materials for the proposed single family, townhouse, age-restricted, and condominium residences. ADDENDA 31 E Hudson & 51111 Woodward Ave (Campus I and II) Addendum C Legal Description 22/06/2023, 19:51 Parcel Number - 64-14-29-484-003 | City of Pontiac | BS&A Online https://bsaonline.com/SiteSearch/SiteSearchDetails?SearchFocus=All+Records&SearchCategory=Parcel+Number&SearchText=64-14-29-484-003&ui…1/3 Amount Due Current Taxes:$3,511.01 Enter a Payment Date + Owner and Taxpayer Information Owner KINGSVILLE PROPERTIES LLC KINGSVILLE PROPERTIES II LLC 30100 TELEGRAPH RD STE 366 BINGHAM FARMS, MI 48025-5800 Taxpayer SEE OWNER INFORMATION Legal Description T3N, R10E, SEC 29 ASSESSOR'S PLAT NO 131 PART OF LOTS 43 & 44, PART OF LOTS 46, 47 & 48, ALSO PART OF VAC PERRY ST ALL DESC AS BEG AT PT DIST S 14- 32-05 E 20.00 FT FROM NW COR OF LOT 47, TH N 75-13-16 E 431.00 FT, TH S 14-32-05 E 113.60 FT, TH S 75-27-55 W 396.00 FT, TH N 14-32-05 W 76.00 FT, TH S 75-27-55 W 35.00 FT, TH N 14-32-05 W 35.76 FT TO BEG Other Information Recalculate amounts using a different Payment Date You can change your anticipated payment date in order to recalculate amounts due as of the specified date for this property. Recalculate Tax History **Note:  On March 1 at 12:00 AM, Summer and Winter local taxes become ineligible for payment at the local unit. Year Season Total Amount Total Paid Last Paid Total Due 2022 Winter $82.18 $0.00 $82.18 ** Read Note(s) Above General Information for 2022 Winter Taxes School District 63030 PRE/MBT 0.0000% Taxable Value $41,600 S.E.V.$41,600 Property Class 201 - COMMERCIAL- IMPROVED Assessed Value $41,600   Tax Bill Number 16044 Last Receipt Number No Data to Display Last Payment Date No Data to Display Number of Payments 0   Base Tax $79.02 Base Paid $0.00 Admin Fees $0.79 Admin Fees Paid $0.00 Interest Fees $2.37 Interest Fees Paid $0.00 Total Tax & Fees $82.18 Total Paid $0.00   Renaissance Zone 0 Mortgage Code No Data to Display Tax Bill Breakdown for 2022 Winter 10 WATER ST  PONTIAC, MI 48342-2233    (Property Address) Parcel Number: 64-14-29-484-003 Property Owner:  KINGSVILLE PROPERTIES LLC Summary Information >Property Tax information found >12 Building Department records found 6/22/2023 22/06/2023, 19:51 Parcel Number - 64-14-29-484-003 | City of Pontiac | BS&A Online https://bsaonline.com/SiteSearch/SiteSearchDetails?SearchFocus=All+Records&SearchCategory=Parcel+Number&SearchText=64-14-29-484-003&ui…2/3 Click here for a printer friendly version of Winter 2022 Tax information 2022 Summer $3,428.83 $0.00 $3,428.83 ** Read Note(s) Above General Information for 2022 Summer Taxes School District 63030 PRE/MBT 0.0000% Taxable Value $41,600 S.E.V.$41,600 Property Class 201 - COMMERCIAL- IMPROVED Assessed Value $41,600   Tax Bill Number 16044 Last Receipt Number No Data to Display Last Payment Date No Data to Display Number of Payments 0   Base Tax $3,213.87 Base Paid $0.00 Admin Fees $22.13 Admin Fees Paid $0.00 Interest Fees $192.83 Interest Fees Paid $0.00 Total Tax & Fees $3,428.83 Total Paid $0.00   Renaissance Zone 0 Mortgage Code No Data to Display Tax Bill Breakdown for 2022 Summer Click here for a printer friendly version of Summer 2022 Tax information Taxing Authority Millage Rate Amount Amount Paid COUNTY PK & REC 0.343100 $14.27 $0.00 HCMA 0.207000 $8.61 $0.00 OAKLAND TRANSIT 0.950000 $39.52 $0.00 ZOO AUTHORITY 0.094500 $3.93 $0.00 ART INSTITUTE 0.194500 $8.09 $0.00 SCHOOL OPERATING 0.110800 $4.60 $0.00 Admin Fees $0.79 $0.00 Interest Fees $2.37 $0.00  1.899900 $82.18 $0.00 Taxing Authority Millage Rate Amount Amount Paid COUNTY OPERATING 3.968600 $165.09 $0.00 OIS ALLOCATED 0.188100 $7.82 $0.00 OIS VOTED 2.977700 $123.87 $0.00 OCC VOTED 1.489100 $61.94 $0.00 STATE EDUCATION 6.000000 $249.60 $0.00 SCHOOL OPERATING 17.889200 $744.19 $0.00 CITY OPERATING 10.913200 $453.98 $0.00 CAP IMP 1.363900 $56.73 $0.00 SANITATION 2.728100 $113.48 $0.00 YOUTH CENTER 1.451900 $60.39 $0.00 LIBRARY 0.967900 $40.26 $0.00 SENIORS SERVICES 0.483900 $20.13 $0.00 PONTIAC SCH DEBT 2.000000 $83.20 $0.00 SINKING FUND 0.798000 $33.19 $0.00 TRANSFER PENALTY 0.000000 $1,000.00 $0.00 Admin Fees $22.13 $0.00 Interest Fees $192.83 $0.00  53.219600 $3,428.83 $0.00 22/06/2023, 19:51 Parcel Number - 64-14-29-484-003 | City of Pontiac | BS&A Online https://bsaonline.com/SiteSearch/SiteSearchDetails?SearchFocus=All+Records&SearchCategory=Parcel+Number&SearchText=64-14-29-484-003&ui…3/3 2021 Winter $0.00 $0.00 $0.00 2021 Summer $0.00 $0.00 $0.00 2020 Winter $0.00 $0.00 $0.00 2020 Summer $0.00 $0.00 $0.00 2019 Winter $0.00 $0.00 $0.00 2019 Summer $0.00 $0.00 $0.00 2018 Winter $0.00 $0.00 $0.00 2018 Summer $0.00 $0.00 $0.00 2017 Winter $0.00 $0.00 $0.00 2017 Summer $0.00 $0.00 $0.00 Load More Years **Disclaimer: BS&A Software provides BS&A Online as a way for municipalities to display information online and is not responsible for the content or accuracy of the data herein. This data is provided for reference only and WITHOUT WARRANTY of any kind, expressed or inferred. Please contact your local municipality if you believe there are errors in the data. Copyright © 2023 BS&A Software, Inc. 22/06/2023, 19:52 Parcel Number - 64-14-29-484-010 | City of Pontiac | BS&A Online https://bsaonline.com/SiteSearch/SiteSearchDetails?SearchFocus=All+Records&SearchCategory=Parcel+Number&SearchText=64-14-29-484-010&ui…1/2 Enter a Payment Date Owner and Taxpayer Information Owner EXCELLOR LLC EXCELLOR 2 LLC 30100 TELEGRAPH RD STE 366 BINGHAM FARMS, MI 48025- 5800 Taxpayer SEE OWNER INFORMATION Legal Description T3N, R10E, SEC 29 ASSESSOR'S PLAT NO 131 PART OF LOT 7, ALSO ALL OF LOT 14, ALSO PART OF LOT 15, ALSO PART OF LOT 41 TO 45 INCL, ALSO PART OF VAC PERRY ST ADJ TO SAME ALL DESC AS BEG AT PT DIST S 01-54-34 E 20.51 FT & S 75-13-16 W 294.22 FT FROM NE COR OF LOT 26 OF SD PLAT, TH S 14-32-05 E 323.81 FT, TH S 75-27-55 W 64 FT, TH N 14-32-05 W 22.99 FT, TH S 75-27-55 W 121 FT, TH N 14-32-05 W 187 FT, TH N 75-27-55 E 133 FT, TH N 14-32-05 W 113.60 FT, TH N 75-13-16 E 52 FT TO BEG 8-29-14 FR 007 Other Information Recalculate amounts using a different Payment Date You can change your anticipated payment date in order to recalculate amounts due as of the specified date for this property. Recalculate Tax History Year Season Total Amount Total Paid Last Paid Total Due 2022 Winter $0.00 $0.00 $0.00 General Information for 2022 Winter Taxes School District 63030 PRE/MBT 0.0000% Taxable Value $0 S.E.V.$0 Property Class 402 - RESIDENTIAL-VACANT Assessed Value $0   Tax Bill Number 16046 Last Receipt Number No Data to Display Last Payment Date No Data to Display Number of Payments 0   Base Tax $0.00 Base Paid $0.00 Admin Fees $0.00 Admin Fees Paid $0.00 Interest Fees $0.00 Interest Fees Paid $0.00 Total Tax & Fees $0.00 Total Paid $0.00   Renaissance Zone 0 Mortgage Code 01101 Tax Bill Breakdown for 2022 Winter Address Unknown Parcel Number: 64-14-29-484-010 Property Owner:  EXCELLOR LLC Summary Information >Property Tax information found >Building Department information found 6/22/2023 Taxing Authority Millage Rate Amount Amount Paid SCHOOL OPERATING 0.110800 $0.00 $0.00 Admin Fees $0.00 $0.00 Interest Fees $0.00 $0.00  0.110800 $0.00 $0.00 22/06/2023, 19:52 Parcel Number - 64-14-29-484-010 | City of Pontiac | BS&A Online https://bsaonline.com/SiteSearch/SiteSearchDetails?SearchFocus=All+Records&SearchCategory=Parcel+Number&SearchText=64-14-29-484-010&ui…2/2 Click here for a printer friendly version of Winter 2022 Tax information 2022 Summer $0.00 $0.00 $0.00 General Information for 2022 Summer Taxes School District 63030 PRE/MBT 0.0000% Taxable Value $0 S.E.V.$0 Property Class 402 - RESIDENTIAL-VACANT Assessed Value $0   Tax Bill Number 16046 Last Receipt Number No Data to Display Last Payment Date No Data to Display Number of Payments 0   Base Tax $0.00 Base Paid $0.00 Admin Fees $0.00 Admin Fees Paid $0.00 Interest Fees $0.00 Interest Fees Paid $0.00 Total Tax & Fees $0.00 Total Paid $0.00   Renaissance Zone 0 Mortgage Code 01101 Tax Bill Breakdown for 2022 Summer Click here for a printer friendly version of Summer 2022 Tax information 2021 Winter $0.00 $0.00 $0.00 2021 Summer $0.00 $0.00 $0.00 2020 Winter $0.00 $0.00 $0.00 2020 Summer $0.00 $0.00 $0.00 2019 Winter $0.00 $0.00 $0.00 2019 Summer $0.00 $0.00 $0.00 2018 Winter $0.00 $0.00 $0.00 2018 Summer $0.00 $0.00 $0.00 2017 Winter $0.00 $0.00 $0.00 2017 Summer $0.00 $0.00 $0.00 Load More Years **Disclaimer: BS&A Software provides BS&A Online as a way for municipalities to display information online and is not responsible for the content or accuracy of the data herein. This data is provided for reference only and WITHOUT WARRANTY of any kind, expressed or inferred. Please contact your local municipality if you believe there are errors in the data. Copyright © 2023 BS&A Software, Inc. Taxing Authority Millage Rate Amount Amount Paid SCHOOL OPERATING 17.889200 $0.00 $0.00 Admin Fees $0.00 $0.00 Interest Fees $0.00 $0.00  17.889200 $0.00 $0.00 22/06/2023, 16:38 Parcel Number - 64-14-32-226-020 | City of Pontiac | BS&A Online https://bsaonline.com/SiteSearch/SiteSearchDetails?SearchFocus=All+Records&SearchCategory=Parcel+Number&SearchText=64-14-32-226-020&ui…1/3 Enter a Payment Date Owner and Taxpayer Information Owner OTTAWA TOWERS 2021 LLC 33 N SAGINAW ST PONTIAC, MI 48342-2153 Taxpayer SEE OWNER INFORMATION Legal Description T3N, R10E, SEC 29 & 32 ASSESSOR'S PLAT NO 65 PART OF LOTS 5 TO 8 INCL, PART OF LOTS 10 & 11, ALSO PART OF VAC DAWSON ALLEY, ALSO PART OF LOTS 31 TO 39 INCL OF 'ASSESSOR'S PLAT N 114', ALSO PART OF LOT 7 OF 'SUB OF OUTLOTS 18, 22 & 23 IN SE 1/4 OF SEC 29', ALSO PART OF NE 1/4 OF SEC 32 ADJ TO LOT 5 OF 'ASSESSOR'S PLAT NO 65' ALL DESC AS BEG AT PT DIST N 14-22-45 W 79.00 FT & S 75-25-42 W 249.58 FT FROM NW COR OF LOT 16 OF 'ASSESSOR'S PLAT NO 130',TH S 75-25-42 W 108.89 FT, TH N 31-27-19 W 451.91 FT, TH N 88-47-56 E 25.00 FT, TH N 75-47-56 E 173.34 FT, TH ALG CURVE TO RIGHT, RAD 225.00 FT, CHORD BEARS N 82-17-56 E 50.94 FT, DIST OF 51.05 FT, TH N 88-47-56 E 48.06 FT, TH S 14-32-05 E 66.56 FT, TH S 75-27-55 W 54.58 FT, TH S 14-32- 05 E 341.81 FT TO BEG Other Information Recalculate amounts using a different Payment Date You can change your anticipated payment date in order to recalculate amounts due as of the specified date for this property. Recalculate Tax History Year Season Total Amount Total Paid Last Paid Total Due 2022 Winter $2,695.53 $2,695.53 12/28/2022 $0.00 General Information for 2022 Winter Taxes School District 63030 PRE/MBT 0.0000% Taxable Value $1,404,750 S.E.V.$1,404,750 Property Class 201 - COMMERCIAL- IMPROVED Assessed Value $1,404,750   Tax Bill Number 19883 Last Receipt Number 00277530 Last Payment Date 12/28/2022 Number of Payments 1   Base Tax $2,668.85 Base Paid $2,668.85 Admin Fees $26.68 Admin Fees Paid $26.68 Interest Fees $0.00 Interest Fees Paid $0.00 Total Tax & Fees $2,695.53 Total Paid $2,695.53   Renaissance Zone 0 Mortgage Code 00278 Tax Bill Breakdown for 2022 Winter 51111 WOODWARD AVE  PONTIAC, MI 48342    (Property Address) Parcel Number: 64-14-32-226-020 Business: 0919-AAA - ASD LATINOS UNLIMITED DBA Property Owner:  OTTAWA TOWERS 2021 LLC Summary Information >Property Tax information found >27 Building Department records found 6/22/2023 Taxing Authority Millage Rate Amount Amount Paid COUNTY PK & REC 0.343100 $481.96 $481.96 HCMA 0.207000 $290.78 $290.78 OAKLAND TRANSIT 0.950000 $1,334.51 $1,334.51  1.899900 $2,695.53 $2,695.53 22/06/2023, 16:38 Parcel Number - 64-14-32-226-020 | City of Pontiac | BS&A Online https://bsaonline.com/SiteSearch/SiteSearchDetails?SearchFocus=All+Records&SearchCategory=Parcel+Number&SearchText=64-14-32-226-020&ui…2/3 Click here for a printer friendly version of Winter 2022 Tax information 2022 Summer $76,507.77 $76,507.77 08/10/2022 $0.00 General Information for 2022 Summer Taxes School District 63030 PRE/MBT 0.0000% Taxable Value $1,404,750 S.E.V.$1,404,750 Property Class 201 - COMMERCIAL- IMPROVED Assessed Value $1,404,750   Tax Bill Number 19883 Last Receipt Number 00269807 Last Payment Date 08/10/2022 Number of Payments 1   Base Tax $75,760.17 Base Paid $75,760.17 Admin Fees $747.60 Admin Fees Paid $747.60 Interest Fees $0.00 Interest Fees Paid $0.00 Total Tax & Fees $76,507.77 Total Paid $76,507.77   Renaissance Zone 0 Mortgage Code 00278 Tax Bill Breakdown for 2022 Summer Click here for a printer friendly version of Summer 2022 Tax information 2021 Winter $1,759.00 $1,759.00 02/23/2022 $0.00 2021 Summer $50,619.03 $50,619.03 09/14/2021 $0.00 2020 Winter $1,699.14 $1,699.14 02/11/2021 $0.00 Taxing Authority Millage Rate Amount Amount Paid ZOO AUTHORITY 0.094500 $132.74 $132.74 ART INSTITUTE 0.194500 $273.22 $273.22 SCHOOL OPERATING 0.110800 $155.64 $155.64 Admin Fees $26.68 $26.68 Interest Fees $0.00 $0.00  1.899900 $2,695.53 $2,695.53 Taxing Authority Millage Rate Amount Amount Paid COUNTY OPERATING 3.968600 $5,574.89 $5,574.89 OIS ALLOCATED 0.188100 $264.23 $264.23 OIS VOTED 2.977700 $4,182.92 $4,182.92 OCC VOTED 1.489100 $2,091.81 $2,091.81 STATE EDUCATION 6.000000 $8,428.50 $8,428.50 SCHOOL OPERATING 17.889200 $25,129.85 $25,129.85 CITY OPERATING 10.913200 $15,330.31 $15,330.31 CAP IMP 1.363900 $1,915.93 $1,915.93 SANITATION 2.728100 $3,832.29 $3,832.29 YOUTH CENTER 1.451900 $2,039.55 $2,039.55 LIBRARY 0.967900 $1,359.65 $1,359.65 SENIORS SERVICES 0.483900 $679.75 $679.75 PONTIAC SCH DEBT 2.000000 $2,809.50 $2,809.50 SINKING FUND 0.798000 $1,120.99 $1,120.99 TRANSFER PENALTY 0.000000 $1,000.00 $1,000.00 Admin Fees $747.60 $747.60 Interest Fees $0.00 $0.00  53.219600 $76,507.77 $76,507.77 22/06/2023, 16:38 Parcel Number - 64-14-32-226-020 | City of Pontiac | BS&A Online https://bsaonline.com/SiteSearch/SiteSearchDetails?SearchFocus=All+Records&SearchCategory=Parcel+Number&SearchText=64-14-32-226-020&ui…3/3 2020 Summer $50,389.35 $50,389.35 08/31/2020 $0.00 2019 Winter $1,571.22 $1,571.22 02/12/2020 $0.00 2019 Summer $49,502.41 $49,502.41 08/28/2019 $0.00 2018 Winter $1,545.97 $1,545.97 12/21/2018 $0.00 2018 Summer $48,522.85 $48,522.85 08/30/2018 $0.00 2017 Winter $1,506.09 $1,506.09 02/12/2018 $0.00 2017 Summer $46,260.89 $46,260.89 09/05/2017 $0.00 Load More Years **Disclaimer: BS&A Software provides BS&A Online as a way for municipalities to display information online and is not responsible for the content or accuracy of the data herein. This data is provided for reference only and WITHOUT WARRANTY of any kind, expressed or inferred. Please contact your local municipality if you believe there are errors in the data. Copyright © 2023 BS&A Software, Inc. 22/06/2023, 19:49 Parcel Number - 64-14-32-226-021 | City of Pontiac | BS&A Online https://bsaonline.com/SiteSearch/SiteSearchDetails?SearchFocus=All+Records&SearchCategory=Parcel+Number&SearchText=64-14-32-226-021&ui…1/3 Enter a Payment Date Owner and Taxpayer Information Owner OTTAWA TOWERS 2021 LLC 33 N SAGINAW ST PONTIAC, MI 48342-2153 Taxpayer SEE OWNER INFORMATION Legal Description T3N, R10E, SEC 32 ASSESSOR'S PLAT NO 65 PART OF LOT 4, ALSO PART OF LOTS 8 TO 11 INCL, & PART OF VAC DAWSON ALLEY ALL DESC AS BEG AT PT DIST N 14-22-45 W 79 FT & S 75-25-42 W 96.55 FT FROM NW COR OF LOT 16 OF ASSESSOR'S PLAT NO 130, TH S 75-25-42 W 153.03 FT, TH N 14-32-05 W 144.81 FT, TH N 75-27-55 E 153.93 FT, TH S 14-10-39 E 144.72 FT TO BEG 2-1-21 CORR Other Information Recalculate amounts using a different Payment Date You can change your anticipated payment date in order to recalculate amounts due as of the specified date for this property. Recalculate Tax History Year Season Total Amount Total Paid Last Paid Total Due 2022 Winter $26.19 $26.19 02/14/2023 $0.00 General Information for 2022 Winter Taxes School District 63030 PRE/MBT 0.0000% Taxable Value $13,670 S.E.V.$13,670 Property Class 202 - COMMERCIAL-VACANT Assessed Value $13,670   Tax Bill Number 19884 Last Receipt Number 00006989 Last Payment Date 02/14/2023 Number of Payments 1   Base Tax $25.94 Base Paid $25.94 Admin Fees $0.25 Admin Fees Paid $0.25 Interest Fees $0.00 Interest Fees Paid $0.00 Total Tax & Fees $26.19 Total Paid $26.19   Renaissance Zone 0 Mortgage Code No Data to Display Tax Bill Breakdown for 2022 Winter JUDSON  PONTIAC, MI 48342    (Property Address) Parcel Number: 64-14-32-226-021 Property Owner:  OTTAWA TOWERS 2021 LLC Summary Information >Property Tax information found >Building Department information found 6/22/2023 Taxing Authority Millage Rate Amount Amount Paid COUNTY PK & REC 0.343100 $4.69 $4.69 HCMA 0.207000 $2.82 $2.82 OAKLAND TRANSIT 0.950000 $12.98 $12.98 ZOO AUTHORITY 0.094500 $1.29 $1.29 ART INSTITUTE 0.194500 $2.65 $2.65  1.899900 $26.19 $26.19 22/06/2023, 19:49 Parcel Number - 64-14-32-226-021 | City of Pontiac | BS&A Online https://bsaonline.com/SiteSearch/SiteSearchDetails?SearchFocus=All+Records&SearchCategory=Parcel+Number&SearchText=64-14-32-226-021&ui…2/3 Click here for a printer friendly version of Winter 2022 Tax information 2022 Summer $1,838.38 $1,838.38 02/14/2023 $0.00 General Information for 2022 Summer Taxes School District 63030 PRE/MBT 0.0000% Taxable Value $13,670 S.E.V.$13,670 Property Class 202 - COMMERCIAL-VACANT Assessed Value $13,670   Tax Bill Number 19884 Last Receipt Number 00007930 Last Payment Date 02/14/2023 Number of Payments 1   Base Tax $1,727.46 Base Paid $1,727.46 Admin Fees $7.27 Admin Fees Paid $7.27 Interest Fees $103.65 Interest Fees Paid $103.65 Total Tax & Fees $1,838.38 Total Paid $1,838.38   Renaissance Zone 0 Mortgage Code No Data to Display Tax Bill Breakdown for 2022 Summer Click here for a printer friendly version of Summer 2022 Tax information 2021 Winter $18.03 $18.03 02/23/2022 $0.00 2021 Summer $519.45 $519.45 09/14/2021 $0.00 2020 Winter $17.41 $17.41 02/11/2021 $0.00 2020 Summer $517.21 $517.21 08/31/2020 $0.00 2019 Winter $16.11 $16.11 02/12/2020 $0.00 2019 Summer $508.40 $508.40 08/28/2019 $0.00 Taxing Authority Millage Rate Amount Amount Paid SCHOOL OPERATING 0.110800 $1.51 $1.51 Admin Fees $0.25 $0.25 Interest Fees $0.00 $0.00  1.899900 $26.19 $26.19 Taxing Authority Millage Rate Amount Amount Paid COUNTY OPERATING 3.968600 $54.25 $54.25 OIS ALLOCATED 0.188100 $2.57 $2.57 OIS VOTED 2.977700 $40.70 $40.70 OCC VOTED 1.489100 $20.35 $20.35 STATE EDUCATION 6.000000 $82.02 $82.02 SCHOOL OPERATING 17.889200 $244.54 $244.54 CITY OPERATING 10.913200 $149.18 $149.18 CAP IMP 1.363900 $18.64 $18.64 SANITATION 2.728100 $37.29 $37.29 YOUTH CENTER 1.451900 $19.84 $19.84 LIBRARY 0.967900 $13.23 $13.23 SENIORS SERVICES 0.483900 $6.61 $6.61 PONTIAC SCH DEBT 2.000000 $27.34 $27.34 SINKING FUND 0.798000 $10.90 $10.90 TRANSFER PENALTY 0.000000 $1,000.00 $1,000.00 Admin Fees $7.27 $7.27 Interest Fees $103.65 $103.65  53.219600 $1,838.38 $1,838.38 22/06/2023, 19:49 Parcel Number - 64-14-32-226-021 | City of Pontiac | BS&A Online https://bsaonline.com/SiteSearch/SiteSearchDetails?SearchFocus=All+Records&SearchCategory=Parcel+Number&SearchText=64-14-32-226-021&ui…3/3 2018 Winter $15.86 $15.86 12/21/2018 $0.00 2018 Summer $498.71 $498.71 08/30/2018 $0.00 2017 Winter $15.45 $15.45 02/12/2018 $0.00 2017 Summer $475.80 $475.80 09/05/2017 $0.00 Load More Years **Disclaimer: BS&A Software provides BS&A Online as a way for municipalities to display information online and is not responsible for the content or accuracy of the data herein. This data is provided for reference only and WITHOUT WARRANTY of any kind, expressed or inferred. Please contact your local municipality if you believe there are errors in the data. Copyright © 2023 BS&A Software, Inc. 22/06/2023, 16:40 Parcel Number - 64-14-32-227-002 | City of Pontiac | BS&A Online https://bsaonline.com/SiteSearch/SiteSearchDetails?SearchFocus=All+Records&SearchCategory=Parcel+Number&SearchText=64-14-32-227-002&ui…1/3 Amount Due Current Taxes:$16,302.48 Enter a Payment Date + Owner and Taxpayer Information Owner 31 E JUDSON LLC 33 N SAGINAW ST PONTIAC, MI 48342- 2153 Taxpayer SEE OWNER INFORMATION Legal Description T3N, R10E, SEC 32 ASSESSOR'S PLAT NO 130 PART OF LOT 1, ALSO ALL OF LOTS 2 & 3, ALSO PART OF LOTS 4 TO 8 INCL & PART OF LOTS 14 & 15, ALSO PART OF VAC AUBURN AVE ALL DESC AS BEG AT PT DIST N 14-22-45 W 79 FT FROM NW COR OF LOT 16, TH N 14-30-01 W 144.67 FT, TH N 75-27-55 E 128 FT, TH N 14- 32-05 W 2.42 FT, TH N 75-27-55 E 64 FT, TH S 14-32-05 E 2.42 FT, TH N 75-27-55 E 124.91 FT, TH S 14-32-05 E 181.79 FT, TH N 85-36-10 W 6.48 FT, TH ALG CURVE TO LEFT, RAD 648.70 FT, CHORD BEARS S 84-54-44 W 213.77 FT, DIST OF 214.75 FT, TH S 75-25-42 W 100 FT TO BEG Other Information Recalculate amounts using a different Payment Date You can change your anticipated payment date in order to recalculate amounts due as of the specified date for this property. Recalculate Tax History **Note:  On March 1 at 12:00 AM, Summer and Winter local taxes become ineligible for payment at the local unit. Year Season Total Amount Total Paid Last Paid Total Due 2022 Winter $1,795.36 $0.00 $1,795.36 ** Read Note(s) Above General Information for 2022 Winter Taxes School District 63030 PRE/MBT 0.0000% Taxable Value $908,650 S.E.V.$908,650 Property Class 201 - COMMERCIAL- IMPROVED Assessed Value $908,650   Tax Bill Number 19885 Last Receipt Number No Data to Display Last Payment Date No Data to Display Number of Payments 0   Base Tax $1,726.31 Base Paid $0.00 Admin Fees $17.26 Admin Fees Paid $0.00 Interest Fees $51.79 Interest Fees Paid $0.00 Total Tax & Fees $1,795.36 Total Paid $0.00   Renaissance Zone 0 Mortgage Code No Data to Display Tax Bill Breakdown for 2022 Winter 31 E JUDSON ST  PONTIAC, MI 48342-2206    (Property Address) Parcel Number: 64-14-32-227-002 Property Owner:  31 E JUDSON LLC Summary Information >Property Tax information found >3 Building Department records found 6/22/2023 Taxing Authority Millage Rate Amount Amount Paid COUNTY PK & REC 0.343100 $311.75 $0.00  1.899900 $1,795.36 $0.00 22/06/2023, 16:40 Parcel Number - 64-14-32-227-002 | City of Pontiac | BS&A Online https://bsaonline.com/SiteSearch/SiteSearchDetails?SearchFocus=All+Records&SearchCategory=Parcel+Number&SearchText=64-14-32-227-002&ui…2/3 Click here for a printer friendly version of Winter 2022 Tax information 2022 Summer $51,507.12 $37,000.00 02/27/2023 $14,507.12 ** Read Note(s) Above General Information for 2022 Summer Taxes School District 63030 PRE/MBT 0.0000% Taxable Value $908,650 S.E.V.$908,650 Property Class 201 - COMMERCIAL- IMPROVED Assessed Value $908,650   Tax Bill Number 19885 Last Receipt Number 00008038 Last Payment Date 02/27/2023 Number of Payments 2   Base Tax $48,357.92 Base Paid $34,799.88 Admin Fees $483.57 Admin Fees Paid $347.98 Interest Fees $2,665.63 Interest Fees Paid $1,852.14 Total Tax & Fees $51,507.12 Total Paid $37,000.00   Renaissance Zone 0 Mortgage Code No Data to Display Tax Bill Breakdown for 2022 Summer Click here for a printer friendly version of Summer 2022 Tax information 2021 Winter $1,717.69 $0.00 $1,717.69 ** Read Note(s) Above 2021 Summer $50,483.71 $30,000.00 11/30/2021 $20,483.71 ** Read Note(s) Above Taxing Authority Millage Rate Amount Amount Paid HCMA 0.207000 $188.09 $0.00 OAKLAND TRANSIT 0.950000 $863.21 $0.00 ZOO AUTHORITY 0.094500 $85.86 $0.00 ART INSTITUTE 0.194500 $176.73 $0.00 SCHOOL OPERATING 0.110800 $100.67 $0.00 Admin Fees $17.26 $0.00 Interest Fees $51.79 $0.00  1.899900 $1,795.36 $0.00 Taxing Authority Millage Rate Amount Amount Paid COUNTY OPERATING 3.968600 $3,606.06 $2,595.03 OIS ALLOCATED 0.188100 $170.91 $123.00 OIS VOTED 2.977700 $2,705.68 $1,947.09 OCC VOTED 1.489100 $1,353.07 $973.71 STATE EDUCATION 6.000000 $5,451.90 $3,923.36 SCHOOL OPERATING 17.889200 $16,255.02 $11,697.62 CITY OPERATING 10.913200 $9,916.27 $7,136.06 CAP IMP 1.363900 $1,239.30 $891.84 SANITATION 2.728100 $2,478.88 $1,783.88 YOUTH CENTER 1.451900 $1,319.26 $949.38 LIBRARY 0.967900 $879.48 $632.91 SENIORS SERVICES 0.483900 $439.69 $316.41 PONTIAC SCH DEBT 2.000000 $1,817.30 $1,307.79 SINKING FUND 0.798000 $725.10 $521.80 Admin Fees $483.57 $347.98 Interest Fees $2,665.63 $1,852.14  53.219600 $51,507.12 $37,000.00 22/06/2023, 16:40 Parcel Number - 64-14-32-227-002 | City of Pontiac | BS&A Online https://bsaonline.com/SiteSearch/SiteSearchDetails?SearchFocus=All+Records&SearchCategory=Parcel+Number&SearchText=64-14-32-227-002&ui…3/3 2020 Winter $1,682.48 $1,682.48 02/11/2021 $0.00 2020 Summer $49,895.19 $49,895.19 08/31/2020 $0.00 2019 Winter $1,567.29 $1,567.29 02/12/2020 $0.00 2019 Summer $49,378.17 $49,378.17 08/28/2019 $0.00 2018 Winter $1,542.08 $1,542.08 12/21/2018 $0.00 2018 Summer $48,400.92 $48,400.92 08/30/2018 $0.00 2017 Winter $1,502.28 $1,502.28 01/24/2018 $0.00 2017 Summer $46,144.35 $46,144.35 08/24/2017 $0.00 Load More Years **Disclaimer: BS&A Software provides BS&A Online as a way for municipalities to display information online and is not responsible for the content or accuracy of the data herein. This data is provided for reference only and WITHOUT WARRANTY of any kind, expressed or inferred. Please contact your local municipality if you believe there are errors in the data. Copyright © 2023 BS&A Software, Inc. 22/06/2023, 16:43 Parcel Number - 64-14-29-484-006 | City of Pontiac | BS&A Online https://bsaonline.com/SiteSearch/SiteSearchDetails?SearchFocus=All+Records&SearchCategory=Parcel+Number&SearchText=64-14-29-484-006&ui…1/2 Enter a Payment Date Owner and Taxpayer Information Owner OTTAWA TOWERS 2021 LLC 33 N SAGINAW ST PONTIAC, MI 48342-2153 Taxpayer SEE OWNER INFORMATION Legal Description T3N, R10E, SEC 29 & 32 ASSESSOR'S PLAT NO 131 LOTS 8 TO 13 INCL, PART OF LOT 45, PART OF LOTS 47 & 48, ALL OF LOTS 49 TO 62 INCL, PART OF LOT 64, ALL OF LOT 65, PART OF LOT 66, ALL OF LOT 67 & PART OF LOT 68, ALSO VAC ALLEY ADJ TO LOTS 11 & 59, ALSO PART OF VAC PERRY ST, ALSO PART OF LOTS 4 TO 14 INCL OF 'ASSESSOR'S PLAT NO 130', ALSO VAC PART OF AUBURN AVE LYING N OF 'ASSESSOR'S PLAT NO 130', ALSO THAT PART OF VAC SAGINAW ST LYING WITHIN OR ADJ TO 'ASSESSOR'S PLAT NOS 130 & 131', ALSO PART OF LOT 101 OF 'PONTIAC ORIGINAL PLAT', ALSO PART OF 'ASSESSOR'S PLAT NO 65' BEING ALL OF LOTS 1, 2 & 3, ALSO PART OF LOTS 4 & 5, ALSO PART OF VAC DAWSON ALLEY, ALSO PART OF 'ASSESSOR'S PLAT 114' BEING PART OF LOT 8, ALSO ALL OF LOTS 9, 10 & 11, ALSOPART OF LOTS 12, 13 & 14, ALSO PART OF LOT 35, ALSO PART OF LOTS 38 & 39, ALSO PART OF VAC PATTERSON AVE ALL DESC AS BEG AT PT DIST S 14-36-54 E 360.29 FT FROM NE COR OF LOT 96 OF 'PONTIAC ORIGINAL PLAT', TH N 75-13-16 E 94.87 FT, TH S 14-32-05 E 35.76 FT, TH N 75-27-55 E 35.00 FT, TH S 14-32-05 E 76.00 FT, TH N 75-27-55 E 263.00 FT, TH S 14-32-05 E 187.00 FT, TH N 75-27-55 E 121.00 FT, TH S 14-32-05 E 579.77 FT, TH N 85-36-14 W 107.83 FT, TH N 14-32-05 W 181.79 FT, TH S 75-27-55 W 124.91 FT, TH N 14-32-05 W 2.42 FT, TH S 75-27-55 W 64.00 FT, TH S 14-32-05 E 2.42 FT, TH S 75-27- 55 W 128.00 FT, TH S 14-30-01 E 144.67 FT, TH S 75-25-42 W 96.55 FT, TH N 14-10-39 W 144.72 FT, TH S 75-27-55 W 153.93 FT, TH N 14-32-05 W 197.00 FT, TH N 75-27-55 E 54.58 FT, TH N 14-32-05 W 245.00 FT, TH S 75-27-55 W 64.00 FT, TH N 14-32-05 W 159.00 FT, TH N 75-27-55 E 67.00 FT, TH N 14-32-05 W 52.00 FT, TH N 75-27-55 E 97.14 FT, TH N 14-36-54 W 8.35 FT TO BEG Other Information Recalculate amounts using a different Payment Date You can change your anticipated payment date in order to recalculate amounts due as of the specified date for this property. Recalculate Tax History Year Season Total Amount Total Paid Last Paid Total Due 2022 Winter $0.00 $0.00 $0.00 General Information for 2022 Winter Taxes School District 63030 PRE/MBT 0.0000% Taxable Value $0 S.E.V.$0 Property Class 401 - RESIDENTIAL- IMPROVED Assessed Value $0   Tax Bill Number 16045 Last Receipt Number No Data to Display Last Payment Date No Data to Display Number of Payments 0   Base Tax $0.00 Base Paid $0.00 Admin Fees $0.00 Admin Fees Paid $0.00 Interest Fees $0.00 Interest Fees Paid $0.00 Total Tax & Fees $0.00 Total Paid $0.00   Renaissance Zone 0 Mortgage Code 01101 Tax Bill Breakdown for 2022 Winter S SAGINAW  PONTIAC, MI 48342    (Property Address) Parcel Number: 64-14-29-484-006 Property Owner:  OTTAWA TOWERS 2021 LLC Summary Information >Property Tax information found >3 Building Department records found 6/22/2023 22/06/2023, 16:43 Parcel Number - 64-14-29-484-006 | City of Pontiac | BS&A Online https://bsaonline.com/SiteSearch/SiteSearchDetails?SearchFocus=All+Records&SearchCategory=Parcel+Number&SearchText=64-14-29-484-006&ui…2/2 Click here for a printer friendly version of Winter 2022 Tax information 2022 Summer $0.00 $0.00 $0.00 General Information for 2022 Summer Taxes School District 63030 PRE/MBT 0.0000% Taxable Value $0 S.E.V.$0 Property Class 401 - RESIDENTIAL- IMPROVED Assessed Value $0   Tax Bill Number 16045 Last Receipt Number No Data to Display Last Payment Date No Data to Display Number of Payments 0   Base Tax $0.00 Base Paid $0.00 Admin Fees $0.00 Admin Fees Paid $0.00 Interest Fees $0.00 Interest Fees Paid $0.00 Total Tax & Fees $0.00 Total Paid $0.00   Renaissance Zone 0 Mortgage Code 01101 Tax Bill Breakdown for 2022 Summer Click here for a printer friendly version of Summer 2022 Tax information 2021 Winter $0.00 $0.00 $0.00 2021 Summer $0.00 $0.00 $0.00 2020 Winter $0.00 $0.00 $0.00 2020 Summer $0.00 $0.00 $0.00 2019 Winter $0.00 $0.00 $0.00 2019 Summer $0.00 $0.00 $0.00 2018 Winter $0.00 $0.00 $0.00 2018 Summer $0.00 $0.00 $0.00 2017 Winter $0.00 $0.00 $0.00 2017 Summer $0.00 $0.00 $0.00 Load More Years **Disclaimer: BS&A Software provides BS&A Online as a way for municipalities to display information online and is not responsible for the content or accuracy of the data herein. This data is provided for reference only and WITHOUT WARRANTY of any kind, expressed or inferred. Please contact your local municipality if you believe there are errors in the data. Copyright © 2023 BS&A Software, Inc. Taxing Authority Millage Rate Amount Amount Paid SCHOOL OPERATING 0.110800 $0.00 $0.00 Admin Fees $0.00 $0.00 Interest Fees $0.00 $0.00  0.110800 $0.00 $0.00 Taxing Authority Millage Rate Amount Amount Paid SCHOOL OPERATING 17.889200 $0.00 $0.00 Admin Fees $0.00 $0.00 Interest Fees $0.00 $0.00  17.889200 $0.00 $0.00 22/06/2023, 19:50 Parcel Number - 64-14-32-227-003 | City of Pontiac | BS&A Online https://bsaonline.com/SiteSearch/SiteSearchDetails?SearchFocus=All+Records&SearchCategory=Parcel+Number&SearchText=64-14-32-227-003&ui…1/3 Amount Due Current Taxes:$2,099.24 Enter a Payment Date + Owner and Taxpayer Information Owner KINGSVILLE PROPERTIES LLC KINGSVILLE PROPERTIES II LLC 30100 TELEGRAPH RD STE 366 BINGHAM FARMS, MI 48025-5800 Taxpayer SEE OWNER INFORMATION Legal Description T3N, R10E, SEC 32 & 33 ASSESSOR'S PLAT NO 130 PART OF LOTS 9 TO 12 INCL, & PART OF VAC AUBURN AVE & PARK ST ALL DESC AS BEG AT PT DIST N 14-22- 45 W 79 FT & N 75-25-42 E 100 FT & N 84-54-44 E 213.77 FT & S 85-36-14 E 114.31 FT FROM NW COR OF LOT 16, TH N 14-32-05 W 185.06 FT, TH ALG CURVE CONCAVE LEFT, RAD 485.37 FT, CHORD BEARS S 86-31-58 E 94.44 FT, DIST OF 94.59 FT, TH N 87-53-06 E 40.05 FT, TH S 04-23-46 W 181.12 FT, TH N 85-36-14 W 74.18 FT TO BEG Other Information Recalculate amounts using a different Payment Date You can change your anticipated payment date in order to recalculate amounts due as of the specified date for this property. Recalculate Tax History **Note:  On March 1 at 12:00 AM, Summer and Winter local taxes become ineligible for payment at the local unit. Year Season Total Amount Total Paid Last Paid Total Due 2022 Winter $34.82 $0.00 $34.82 ** Read Note(s) Above General Information for 2022 Winter Taxes School District 63030 PRE/MBT 0.0000% Taxable Value $17,640 S.E.V.$17,640 Property Class 202 - COMMERCIAL-VACANT Assessed Value $17,640   Tax Bill Number 19886 Last Receipt Number No Data to Display Last Payment Date No Data to Display Number of Payments 0   Base Tax $33.49 Base Paid $0.00 Admin Fees $0.33 Admin Fees Paid $0.00 Interest Fees $1.00 Interest Fees Paid $0.00 Total Tax & Fees $34.82 Total Paid $0.00   Renaissance Zone 0 Mortgage Code No Data to Display Tax Bill Breakdown for 2022 Winter JUDSON  PONTIAC, MI 48342    (Property Address) Parcel Number: 64-14-32-227-003 Property Owner:  KINGSVILLE PROPERTIES LLC Summary Information >Property Tax information found >Building Department information found 6/22/2023 22/06/2023, 19:50 Parcel Number - 64-14-32-227-003 | City of Pontiac | BS&A Online https://bsaonline.com/SiteSearch/SiteSearchDetails?SearchFocus=All+Records&SearchCategory=Parcel+Number&SearchText=64-14-32-227-003&ui…2/3 Click here for a printer friendly version of Winter 2022 Tax information 2022 Summer $2,064.42 $0.00 $2,064.42 ** Read Note(s) Above General Information for 2022 Summer Taxes School District 63030 PRE/MBT 0.0000% Taxable Value $17,640 S.E.V.$17,640 Property Class 202 - COMMERCIAL-VACANT Assessed Value $17,640   Tax Bill Number 19886 Last Receipt Number No Data to Display Last Payment Date No Data to Display Number of Payments 0   Base Tax $1,938.72 Base Paid $0.00 Admin Fees $9.38 Admin Fees Paid $0.00 Interest Fees $116.32 Interest Fees Paid $0.00 Total Tax & Fees $2,064.42 Total Paid $0.00   Renaissance Zone 0 Mortgage Code No Data to Display Tax Bill Breakdown for 2022 Summer Click here for a printer friendly version of Summer 2022 Tax information 2021 Winter $0.00 $0.00 $0.00 Taxing Authority Millage Rate Amount Amount Paid COUNTY PK & REC 0.343100 $6.05 $0.00 HCMA 0.207000 $3.65 $0.00 OAKLAND TRANSIT 0.950000 $16.75 $0.00 ZOO AUTHORITY 0.094500 $1.66 $0.00 ART INSTITUTE 0.194500 $3.43 $0.00 SCHOOL OPERATING 0.110800 $1.95 $0.00 Admin Fees $0.33 $0.00 Interest Fees $1.00 $0.00  1.899900 $34.82 $0.00 Taxing Authority Millage Rate Amount Amount Paid COUNTY OPERATING 3.968600 $70.00 $0.00 OIS ALLOCATED 0.188100 $3.31 $0.00 OIS VOTED 2.977700 $52.52 $0.00 OCC VOTED 1.489100 $26.26 $0.00 STATE EDUCATION 6.000000 $105.84 $0.00 SCHOOL OPERATING 17.889200 $315.56 $0.00 CITY OPERATING 10.913200 $192.50 $0.00 CAP IMP 1.363900 $24.05 $0.00 SANITATION 2.728100 $48.12 $0.00 YOUTH CENTER 1.451900 $25.61 $0.00 LIBRARY 0.967900 $17.07 $0.00 SENIORS SERVICES 0.483900 $8.53 $0.00 PONTIAC SCH DEBT 2.000000 $35.28 $0.00 SINKING FUND 0.798000 $14.07 $0.00 TRANSFER PENALTY 0.000000 $1,000.00 $0.00 Admin Fees $9.38 $0.00 Interest Fees $116.32 $0.00  53.219600 $2,064.42 $0.00 22/06/2023, 19:50 Parcel Number - 64-14-32-227-003 | City of Pontiac | BS&A Online https://bsaonline.com/SiteSearch/SiteSearchDetails?SearchFocus=All+Records&SearchCategory=Parcel+Number&SearchText=64-14-32-227-003&ui…3/3 2021 Summer $0.00 $0.00 $0.00 2020 Winter $0.00 $0.00 $0.00 2020 Summer $0.00 $0.00 $0.00 2019 Winter $0.00 $0.00 $0.00 2019 Summer $0.00 $0.00 $0.00 2018 Winter $0.00 $0.00 $0.00 2018 Summer $0.00 $0.00 $0.00 2017 Winter $0.00 $0.00 $0.00 2017 Summer $0.00 $0.00 $0.00 Load More Years **Disclaimer: BS&A Software provides BS&A Online as a way for municipalities to display information online and is not responsible for the content or accuracy of the data herein. This data is provided for reference only and WITHOUT WARRANTY of any kind, expressed or inferred. Please contact your local municipality if you believe there are errors in the data. Copyright © 2023 BS&A Software, Inc. 22/06/2023, 19:53 Parcel Number - 64-14-32-231-009 | City of Pontiac | BS&A Online https://bsaonline.com/SiteSearch/SiteSearchDetails?SearchFocus=All+Records&SearchCategory=Parcel+Number&SearchText=64-14-32-231-009&ui…1/3 Amount Due Current Taxes:$2,436.86 Enter a Payment Date + Owner and Taxpayer Information Owner KINGSVILLE PROPERTIES LLC KINGSVILLE PROPERTIES II LLC 30100 TELEGRAPH RD STE 366 BINGHAM FARMS, MI 48025-5800 Taxpayer SEE OWNER INFORMATION Legal Description T3N, R10E, SEC 32 ASSESSOR'S PLAT NO 130 LOTS 34 TO 37 INCL EXC THAT PART TAKEN FOR WIDE TRACK DR Other Information Recalculate amounts using a different Payment Date You can change your anticipated payment date in order to recalculate amounts due as of the specified date for this property. Recalculate Tax History **Note:  On March 1 at 12:00 AM, Summer and Winter local taxes become ineligible for payment at the local unit. Year Season Total Amount Total Paid Last Paid Total Due 2022 Winter $46.13 $0.00 $46.13 ** Read Note(s) Above General Information for 2022 Winter Taxes School District 63030 PRE/MBT 0.0000% Taxable Value $23,370 S.E.V.$23,370 Property Class 202 - COMMERCIAL-VACANT Assessed Value $23,370   Tax Bill Number 19900 Last Receipt Number No Data to Display Last Payment Date No Data to Display Number of Payments 0   Base Tax $44.36 Base Paid $0.00 Admin Fees $0.44 Admin Fees Paid $0.00 Interest Fees $1.33 Interest Fees Paid $0.00 Total Tax & Fees $46.13 Total Paid $0.00   Renaissance Zone 0 Mortgage Code No Data to Display Tax Bill Breakdown for 2022 Winter WOODWARD  Pontiac, MI 48342    (Property Address) Parcel Number: 64-14-32-231-009 Property Owner:  KINGSVILLE PROPERTIES LLC Summary Information >Property Tax information found >1 Building Department records found 6/22/2023 Taxing Authority Millage Rate Amount Amount Paid COUNTY PK & REC 0.343100 $8.01 $0.00  1.899900 $46.13 $0.00 22/06/2023, 19:53 Parcel Number - 64-14-32-231-009 | City of Pontiac | BS&A Online https://bsaonline.com/SiteSearch/SiteSearchDetails?SearchFocus=All+Records&SearchCategory=Parcel+Number&SearchText=64-14-32-231-009&ui…2/3 Click here for a printer friendly version of Winter 2022 Tax information 2022 Summer $2,390.73 $0.00 $2,390.73 ** Read Note(s) Above General Information for 2022 Summer Taxes School District 63030 PRE/MBT 0.0000% Taxable Value $23,370 S.E.V.$23,370 Property Class 202 - COMMERCIAL-VACANT Assessed Value $23,370   Tax Bill Number 19900 Last Receipt Number No Data to Display Last Payment Date No Data to Display Number of Payments 0   Base Tax $2,243.68 Base Paid $0.00 Admin Fees $12.43 Admin Fees Paid $0.00 Interest Fees $134.62 Interest Fees Paid $0.00 Total Tax & Fees $2,390.73 Total Paid $0.00   Renaissance Zone 0 Mortgage Code No Data to Display Tax Bill Breakdown for 2022 Summer Click here for a printer friendly version of Summer 2022 Tax information 2021 Winter $0.00 $0.00 $0.00 2021 Summer $0.00 $0.00 $0.00 Taxing Authority Millage Rate Amount Amount Paid HCMA 0.207000 $4.83 $0.00 OAKLAND TRANSIT 0.950000 $22.20 $0.00 ZOO AUTHORITY 0.094500 $2.20 $0.00 ART INSTITUTE 0.194500 $4.54 $0.00 SCHOOL OPERATING 0.110800 $2.58 $0.00 Admin Fees $0.44 $0.00 Interest Fees $1.33 $0.00  1.899900 $46.13 $0.00 Taxing Authority Millage Rate Amount Amount Paid COUNTY OPERATING 3.968600 $92.74 $0.00 OIS ALLOCATED 0.188100 $4.39 $0.00 OIS VOTED 2.977700 $69.58 $0.00 OCC VOTED 1.489100 $34.80 $0.00 STATE EDUCATION 6.000000 $140.22 $0.00 SCHOOL OPERATING 17.889200 $418.07 $0.00 CITY OPERATING 10.913200 $255.04 $0.00 CAP IMP 1.363900 $31.87 $0.00 SANITATION 2.728100 $63.75 $0.00 YOUTH CENTER 1.451900 $33.93 $0.00 LIBRARY 0.967900 $22.61 $0.00 SENIORS SERVICES 0.483900 $11.30 $0.00 PONTIAC SCH DEBT 2.000000 $46.74 $0.00 SINKING FUND 0.798000 $18.64 $0.00 TRANSFER PENALTY 0.000000 $1,000.00 $0.00 Admin Fees $12.43 $0.00 Interest Fees $134.62 $0.00  53.219600 $2,390.73 $0.00 22/06/2023, 19:53 Parcel Number - 64-14-32-231-009 | City of Pontiac | BS&A Online https://bsaonline.com/SiteSearch/SiteSearchDetails?SearchFocus=All+Records&SearchCategory=Parcel+Number&SearchText=64-14-32-231-009&ui…3/3 2020 Winter $0.00 $0.00 $0.00 2020 Summer $0.00 $0.00 $0.00 2019 Winter $0.00 $0.00 $0.00 2019 Summer $0.00 $0.00 $0.00 2018 Winter $0.00 $0.00 $0.00 2018 Summer $0.00 $0.00 $0.00 2017 Winter $0.00 $0.00 $0.00 2017 Summer $0.00 $0.00 $0.00 Load More Years **Disclaimer: BS&A Software provides BS&A Online as a way for municipalities to display information online and is not responsible for the content or accuracy of the data herein. This data is provided for reference only and WITHOUT WARRANTY of any kind, expressed or inferred. Please contact your local municipality if you believe there are errors in the data. Copyright © 2023 BS&A Software, Inc. ADDENDA 31 E Hudson & 51111 Woodward Ave (Campus I and II) Addendum D Comparable Data ADDENDA 31 E Hudson & 51111 Woodward Ave (Campus I and II) Addendum E Précis Metro Report - Economy.Com, Inc. 1-866-275-3266 helpeconomy@moodys.com ANALYSIS VITALITYRELATIVE COSTS LIVING BUSINESS RELATIVE OF LIFE Best=1, Worst=378Best=1, Worst=403 STRENGTHS & WEAKNESSES U.S.=100% SHORT TERM FORECAST RISKS LONG TERM BUSINESS CYCLE STATUS MOODY’S RATING ECONOMIC DRIVERS Most=1 Least=403 EMPLOYMENT GROWTH RANK Best=1, Worst=410 2021-2023 2021-2026 QUALITY MOODY’S ANALYTICS / Précis® U.S. Metro / February 2023 MANUFAC TURING HIGH TECH 2016 2017 2018 2019 2020 2021 INDICATORS 2022 2023 2024 2025 2026 2027 138.9 141.3 144.8 144.7 139.0 150.8 Gross metro product (C12$ bil) 155.0 155.3 158.0 162.3 166.2 170.0 2.4 1.7 2.5 -0.0 -4.0 8.5 % change 2.8 0.2 1.7 2.7 2.4 2.3 1,229.8 1,250.0 1,266.2 1,270.3 1,146.6 1,198.5 Total employment (ths) 1,246.0 1,269.2 1,278.3 1,286.0 1,287.4 1,288.2 2.2 1.6 1.3 0.3 -9.7 4.5 % change 4.0 1.9 0.7 0.6 0.1 0.1 4.7 4.0 3.8 3.8 10.3 5.3 Unemployment rate (%) 3.6 3.9 4.4 4.2 4.2 4.3 2.9 3.8 3.8 3.0 7.1 4.8 Personal income growth (%) 0.2 4.5 4.2 4.0 3.9 3.7 65.8 68.7 71.3 73.1 75.3 77.8 Median household income ($ ths) 76.8 79.6 82.1 84.8 87.5 90.1 2,555.6 2,564.4 2,567.6 2,570.3 2,569.9 2,572.5 Population (ths) 2,578.3 2,584.2 2,588.0 2,591.4 2,595.0 2,599.1 0.4 0.3 0.1 0.1 -0.0 0.1 % change 0.2 0.2 0.1 0.1 0.1 0.2 6.9 5.5 0.9 0.4 -0.5 5.6 Net migration (ths) 7.4 4.6 2.7 2.6 3.3 4.0 4,665 5,668 5,049 4,346 4,278 4,566 Single-family permits (#) 3,923 5,087 5,522 6,439 6,858 6,718 1,265 1,892 717 1,797 891 1,792 Multifamily permits (#) 1,497 1,081 1,047 963 816 664 159.7 170.5 180.8 189.1 198.0 221.6 FHFA house price (1995Q1=100) 249.0 242.1 227.9 220.4 220.6 223.4 Recent Performance. Warren-Troy-Farmington Hills is losing steam. Job growth has trailed the state and national paces for the past year, and the gaps have widened. Critical manufacturing is losing ground, as are office-using industries. On the other hand, healthcare job creation has finally ramped up. The labor force has been shrinking at a worrying pace since last spring, an unfortunate turn given that it had not returned to the pre-pandemic size. The waning labor pool is helping to push the jobless rate to lows last hit more than 20 years ago, making hiring difficult. After a brief respite last fall, house prices are once again declining in step with the national pace. Vehicles. Easing supply-chain constraints will help increase automaker productivity this year, boosting WRE’s manufacturing payrolls. Manu- facturing accounts for an above-average share of employment, and about two-fifths of factory payrolls are in transportation equipment. There- fore, WRE has been particularly vulnerable to global supply-chain problems, particularly the semiconductor chip shortage. Bottlenecks are loosening, and while demand is cooling under waning vehicle affordability, it remains stron- ger than current supply can fulfill. Backlogs will keep automakers, auto parts suppliers, and tire producers firing for the next couple of years, but after that the outlook weakens. Investment in electric vehicles offers potential upsides if WRE can quickly shift production to EVs. GM is invest- ing in new capacity to produce Cadillac’s flag- ship electric vehicle, the Celestiq, in WRE, and Graphex Technologies will construct a graphite processing plant—a mineral vital for lithium-ion car batteries. Tech. WRE’s high concentration of auto-related tech will prove advantageous as automakers shift their attention to electric vehicles. An increased focus on EV development will be a catalyst for professional and technical services growth in the metro division. WRE’s relatively low cost of doing business and its established base of automakers are major draws for companies looking to relocate or expand. Automakers are investing billions in EV technology to eventually shift away from internal- combustion engines, including in WRE. GM is building a new battery cell innovation lab to devel- op a longer-range battery and expanding its tech center in WRE. However, high borrowing costs and stock market volatility will hamper EV investment in the near term. Furthermore, labor force weak- ness will limit the supply of available workers. Healthcare. Healthcare will extend its strong performance this year, but payrolls will be ris- ing from a relatively low base, and the stronger growth will not last. The industry’s rebound re- sumed in 2022 after making virtually no prog- ress since late 2020. WRE has an outsize share of residents aged 65 and older, which ensures steady demand for health services. However, the high share of retirement-age individuals makes it difficult to find workers to meet this demand, even as employers are offering higher wages and signing bonuses to boost payrolls. Additionally, nursing and residential care facilities account for a greater share of healthcare employment than nationally. These facilities struggle more than others to fill open positions, which will weigh on healthcare’s long-term prospects. Warren-Troy-Farmington Hills will con- tinue to progress this year while much of the country backtracks. Consumer-facing indus- tries such as healthcare, retail and leisure/ hospitality will push ahead, though they will do so from a relatively weak starting point. Manufacturers will get a short-term boost from a confluence of solid demand and im- proved productivity. Longer term, a dearth of young workers will stifle WRE’s prospects. Katie Nied February 2023 STRENGTHS »Auto-related R&D centers, headquarters for automakers and suppliers. »Above-average per capita income. »Above-average educational attainment. WEAKNESSES »Shrinking working-age population. »Overreliance on manufacturing and domestic vehicle industry. »Elevated employment volatility. UPSIDE »Fiat Chrysler investment in neighboring Detroit spurs supplier growth. »EV investment creates long-term demand for auto-related tech. DOWNSIDE »High borrowing costs hurt demand for vehicles more than expected, dinging auto industry growth. »Stock market volatility halts growth in the tech sector, costing high-wage jobs.XWCOUNTY AS OF SEP 27, 2017Aaa 76 1st quintile 3390.38 Rank: 8796%101%147 2nd quintile 119 2nd quintile At Risk Recovery MidExpansion LateExpansion In Recession WARREN-TROY-FARMINGTON HILLS MI Data Buffet® MSA code: IUSA_DMWRE RISK EXPOSURE 2022-2027 MOODY’S ANALYTICS / Précis® U.S. Metro / February 2023 WRE MI U.S. 95 98 01 04 07 10 13 16 19 120 140 160 180 200 220 240 3-MO MA Jul 22 Aug 22 Sep 22 Oct 22 Nov 22 Dec 22 Employment, change, ths 6.6 6.4 2.6 -1.1 -0.4 0.7 Unemployment rate, %3.7 3.6 3.5 3.3 3.2 3.2 Labor force participation rate, %63.4 63.3 63.1 62.9 62.7 62.6 Average weekly hours, #35.2 35.0 35.0 35.0 35.0 35.0 Industrial production, 2012=100 102.4 102.8 103.5 103.6 103.3 102.7 Residential permits, single-family, #4,195 3,595 3,216 3,079 2,844 2,481 Residential permits, multifamily, #1,234 2,003 1,258 1,212 397 1,567 Dec/Dec Dec 17 Dec 18 Dec 19 Dec 20 Dec 21 Dec 22 Employment, change, ths 17.8 14.0 6.9 -116.1 62.2 32.5 PRÉCIS® U.S. METRO • Warren-Troy-Farmington Hills MI WRE MI U.S. 12 13 14 15 16 17 18 19 20 21 22 90 100 11 0 120 130 140 150 17 18 19 20 21 22 -30 -20 -10 0 10 20 30 40 WRE MI U.S. 14 15 16 17 18 19 20 21 22 45 50 55 60 65 70 75 80 WRE MI U.S. 12 13 14 15 16 17 18 19 20 21 22F 23F 24F 25F 26F 85 90 95 100 105 110 115 120 125 ll▼▼▲▲ll▼▼▲▲ll▼▼▲▲ll▼▼▲▲ll▼▼▲▲ll▼▼▲▲WRE MI U.S. 98 01 04 07 10 13 16 19 22 50 100 150 200 250 300 350 WRE MI U.S. 01 03 05 07 09 11 13 15 17 19 21 50 100 150 200 250 300 350 Overvalued Undervalued 98 01 04 07 10 13 16 19 22 -30 -20 -10 0 10 20 30 40 % CHANGE YR AGO, 3-MO MA Dec 21 Jun 22 Dec 22 Total 4.2 4.2 2.9 Mining 10.5 11.7 7.3 Construction 2.0 -1.1 0.9 Manufacturing 2.3 7.9 3.1 Trade 0.3 1.3 2.3 Trans/Utilities 17.8 25.8 11.7 Information 7.9 3.5 1.8 Financial Activities 2.9 0.0 3.3 Prof & Business Svcs. 5.0 3.8 0.9 Edu & Health Svcs. 0.7 0.5 3.2 Leisure & Hospitality 17.2 10.3 3.9 Other Services 7.6 5.1 1.6 Government 1.8 2.9 2.9 FORECAST VS. 6 MO PRIOR 2-Yr 5-Yr Sources: BLS, Moody’s Analytics ECONOMIC HEALTH CHECK BUSINESS CYCLE INDEX RELATIVE EMPLOYMENT PERFORMANCE CURRENT EMPLOYMENT TRENDS Source: Moody’s Analytics Sources: BLS, Moody’s AnalyticsSources: BLS, Moody’s Analytics Sources: BLS, Moody’s Analytics % CHANGE YR AGO Government Goods producing Private services HOUSE PRICE Sources: FHFA, Moody’s Analytics Better than prior 3-mo MA Unchanged from prior 3-mo MA Wo rse than prior 3-mo MA Sources: BLS, Census Bureau, Moody’s Analytics RENTAL AFFORDABILITY GREATER THAN 100=MORE AFFORDABLE DIFFUSION INDEX HOUSE PRICE TRENDS Sources: NAR, Moody’s Analytics GREATER THAN 100=MORE AFFORDABLE HOUSING AFFORDABILITY Source: Moody’s Analytics % JAN 2012=100 JAN 2012=100 1998Q1=100, NSA Sources: Census Bureau, BLS, Moody’s Analytics 3-DIGIT NAICS LEVEL, 6-MO MA LOWHIGHThs % of total Ths % of total MOODY’S ANALYTICS / Précis® U.S. Metro / February 2023 PRÉCIS® U.S. METRO • Warren-Troy-Farmington Hills MI Source: Moody’s Analytics, 2022 96% 0 20 40 60 80 100 167 100 WRE U.S. 0.54 0.00 0.20 0.40 0.60 0.80 1.00 Location Employees NAICS Industry Quotient (ths) 5413 Architectural, engineering & rel. srvcs. 4.7 58.5 3363 Motor vehicle parts manufacturing 11.1 48.3 5511 Management of companies & enterprises 1.4 27.5 5415 Computer systems design & related srvcs. 1.4 26.1 GVL Local Government 0.7 75.0 6221 General medical and surgical hospitals 1.2 43.2 2382 Building equipment contractors 1.1 20.2 5419 Other prof., scientific & technical srvcs. 2.0 13.2 7225 Restaurants and other eating places 0.9 74.8 5613 Employment services 1.4 41.1 5617 Services to buildings and dwellings 1.2 20.2 4451 Grocery stores 0.8 18.0 Source: Moody’s Analytics, 2021 Federal 13,822 State 7,801 Local 74,053 2021 WRE 181.7 14.6 U.S. 15,202.7 10.0 WRE 65.1 5.2 U.S. 8,388.4 5.5 Beaumont Health System 18,261 Chrysler Group LLC 12,848 General Motors Corp. 8,476 Henry Ford Health System 6,368 Ascension Michigan 5,630 St. John Providence Health System 3,061 Magna International of America Inc. 2,646 CHE Trinity Health 2,578 Continental Automotive Systems Inc. 2,000 Comerica Bank 1,974 Flagstar Bancorp Inc. 1,960 Lear Corp. 1,749 Oakland University 1,724 Blue Cross Blue Shield of Michigan 1,709 McLaren Health Care 1,620 The Suburban Collection 1,553 Faurecia North America 1,391 U.S. Farathane 1,338 Delphi Automotive 1,316 Robert Bosch LLC 1,305 Source: Oakland County, 2019 NOT AVAILABLE 92,637 86,348 97,492 WRE MI U.S. 0 20 40 60 80 100 120 COMPARATIVE EMPLOYMENT AND INCOME % OF TOTAL EMPLOYMENT AVERAGE ANNUAL EARNINGS Sector WRE MI U.S. WRE MI U.S. Mining 0.0 0.1 0.4 $28,859 $60,693 $140,972 Construction 4.5 4.2 5.1 $76,264 $68,298 $74,543 Manufacturing 12.6 13.9 8.4 $95,038 $89,554 $95,006 Durable 82.1 75.0 62.2 nd $90,818 $98,900 Nondurable 17.9 25.0 37.8 nd $85,830 $88,725 Transportation/Utilities 2.9 3.9 4.6 $49,546 $62,309 $62,962 Wholesale Trade 4.5 3.9 3.9 $126,787 $102,021 $104,126 Retail Trade 11.1 10.7 10.4 $44,848 $40,007 $43,812 Information 1.6 1.2 2.0 $109,958 $97,167 $167,037 Financial Activities 7.1 5.5 6.0 $65,385 $57,891 $65,977 Prof. and Bus. Services 21.3 15.0 14.6 $90,526 $78,437 $86,343 Educ. and Health Services 14.5 15.5 16.2 $62,768 $63,263 $66,256 Leisure and Hosp. Services 8.1 8.6 9.7 $28,156 $30,043 $36,373 Other Services 3.6 3.7 3.7 $39,484 $38,912 $42,808 Government 8.0 13.7 15.0 $84,665 $79,838 $90,556 Sources: Percent of total employment — BLS, Moody’s Analytics, 2021, Average annual earnings — BEA, Moody’s Analytics, 2021 2020 WRE MI 0 20 40 60 80 100 EMPLOYMENT AND INDUSTRY ENTREPRENEURSHIP Due to U.S. fl uctuations Relative to U.S. TOP EMPLOYERS PUBLIC INDUSTRIAL DIVERSITY EMPLOYMENT VOLATILITY Due to U.S. Most Diverse (U.S.) Least Diverse Not due to U.S.MIDLEADING INDUSTRIES BY WAGE TIER HIGH-TECH EMPLOYMENT HOUSING-RELATED EMPLOYMENT BUSINESS COSTS Source: Moody’s Analytics U.S.=100 EXPORTS PRODUCTIVITY To tal Unit labor Energy State and local taxes Oÿ ce rent BROAD-BASED START-UP RATE U.S.=100 REAL OUTPUT PER WORKER, $ Sources: BEA, Moody’s Analytics, 2021 2016 2021 Sources: Census Bureau, Moody’s Analytics NET MIGRATION, # MOODY’S ANALYTICS / Précis® U.S. Metro / February 2023 WRE U.S. Sources: Census Bureau, ACS, Moody’s Analytics, 2020 MWR MI U.S. 11 12 13 14 15 16 17 18 19 20 21 35 40 45 50 55 60 65 70 INTO WARREN MI Number of Migrants Detroit MI 27,654 Flint MI 4,262 Ann Arbor MI 2,991 Lansing MI 1,525 Chicago IL 1,455 New York NY 1,101 Grand Rapids MI 912 Phoenix AZ 708 Los Angeles CA 685 San Diego CA 428 Total in-migration 72,557 FROM WARREN MI Detroit MI 20,983 Flint MI 5,170 Ann Arbor MI 2,620 Lansing MI 1,530 Grand Rapids MI 1,517 Chicago IL 1,117 Phoenix AZ 1,104 Tampa FL 797 Atlanta GA 726 Dallas TX 697 Total out-migration 75,532 Net migration -2,975 Index 2018 Rank* Gini coefficient 0.46 230 Palma ratio 3.1 215 Poverty rate 9.4% 356 *Most unequal=1; Most equal=403 8 29 32 19 12 7 24 30 23 16 0 1 2 3 4 5 6 7 8 Net Migration, WRE 18 19 20 21 -7,000 -6,000 -5,000 -4,000 -3,000 -2,000 -1,000 0 1,000 0 5 10 15 20 25 30 0 2 4 6 8 10 12 14 16 WRE U.S. 0 5 10 15 20 25 30 2018 2019 2020 2021 Domestic -5,347 -4,435 -6,685 -8,549 Foreign 5,828 3,025 2,882 2,199 Total 482 -1,410 -3,803 -6,350 Sources: IRS (top), 2020, Census Bureau, Moody’s Analytics WRE MI U.S. 82.6% Top Outside Sources of Workers Warren MI Share Detroit MI 12.0 Flint MI 2.3 Ann Arbor MI 0.8 Lansing MI 0.3 Monroe MI 0.1 79.3% Top Outside Sources of Jobs Warren MI Share Detroit MI 15.6 Ann Arbor MI 1.9 Flint MI 1.3 Lansing MI 0.5 Saginaw MI 0.1 Sources: Census Bureau, Moody’s Analytics, avg 2011-2015 RESIDENTS WHO WORK IN WRE WORKERS WHO LIVE IN WRE PRÉCIS® U.S. METRO • Warren-Troy-Farmington Hills MI WRE WRE COMMUTER FLOWS ECONOMIC DISENFRANCHISEMENT Undereducated Balanced Overeducated MIGRATION FLOWS GENERATIONAL BREAKDOWN SKILLS MISMATCH EDUCATIONAL AT TAINMENT % OF ADULTS 25 AND OLDER < High school High school Some college College Graduate school 100 80 60 40 20 0 POPULATION BY AGE, % U.S. PER CAPITA INCOME Sources: BEA, Moody’s Analytics $ THS POPULATION BY GENERATION, % % OF TOTAL Less than HS High School Some College Associate’s Bachelor’s Graduate Occupations Population HOUSEHOLDS BY INCOME, % Gen Z Millennial Gen X Baby Boom Silent & Greatest 0-19,999 20,000-39,999 40,000-59,999 60,000-74,999 75,000-99,999 100,000-124,999 125,000-149,999 150,000-199,999 200,000+ U.S. NET MIGRATION, # ≥7570-7465-69 60-64 55-59 50-5445-49 40-4435-3930-3425-2920-2415-1910-145-90-4 2021 WRE $68,060 MI $56,494 U.S. $64,143 Sources: Census Bureau, ACS, Moody’s Analytics, 2018 Sources: Census Bureau, Moody’s Analytics, 2020 Sources: Census Bureau, ACS, Moody’s Analytics, 2021 Sources: Census Bureau, Moody’s Analytics, 2021 MOODY’S ANALYTICS / Précis® U.S. Metro / February 2023 GEOGRAPHIC PROFILE Sources: ACS, Moody’s Analytics POPULATION DENSITY MEDIAN HOUSEHOLD INCOME MEDIAN COMMUTE TIME POPULATION & HOUSING CHARACTERISTICS Units Value Rank* Total area sq mi 3,562.9 87 Total water area sq mi 285.7 78 Total land area sq mi 3,276.3 86 Land area - developable sq mi 3,266.9 21 Land area - undevelopable sq mi 10.2 332 Population density pop. to developable land 790.6 33 Total population ths 2,590.4 26 U.S. citizen at birth % of population 88.8 270 Naturalized U.S. citizen % of population 6.3 80 Not a U.S. citizen % of population 3.9 165 Median age 41.9 71 Total housing units ths 1,116.7 20 Owner occupied % of total 72.1 8 Renter occupied % of total 23.2 333 Vacant % of total 4.7 369 1-unit; detached % of total 71.3 104 1-unit; attached % of total 6.9 85 Multifamily % of total 18.2 264 Median year built 1976 * Areas & pop. density, out of 410 metro areas/divisions, including metros in Puerto Rico; all others, out of 403 metros. Sources: Census Bureau, Moody’s Analytics, 2021 except land area 2010 PRÉCIS® U.S. METRO • Warren-Troy-Farmington Hills MI About Moody’s Analytics Moody’s Analytics provides fi nancial intelligence and analytical tools supporting our clients’ growth, effi ciency and risk management objectives. The combination of our unparalleled expertise in risk, expansive information resources, and innovative application of technology helps today’s business leaders confi dently navigate an evolving marketplace. We are recognized for our industry-leading solutions, comprising research, data, software and professional services, assembled to deliver a seamless customer experience. Thousands of organizations worldwide have made us their trusted partner because of our uncompromising commitment to quality, client service, and integrity. 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ADDENDA 31 E Hudson & 51111 Woodward Ave (Campus I and II) Addendum F Appraiser Qualifications and Licenses 1 Ilya Barskiy MAI, joined Newmark Valuation & Advisory in 2019 as a Senior Vice President in the Detroit office. Actively engaged in real estate valuation and consulting since 2004, Ilya has extensive experience across many asset classes, with a focus on office properties. He has successfully completed valuations on various proposed, partially completed, renovated and existing structures, including a wide array of general and medical office projects, for-sale and rental multifamily developments, parking facilities, retail centers, single- and multitenanted industrial buildings, complex mixed- use development projects and vacant land. He also has extensive experience in valuations for alternative cultivation, processing, and provisioning properties. Ilya’s valuations have been used in prospective financing, estate planning, collateral monitoring and litigation support. Notable Appraisal Assignments – CBD office complex, 2.4 million SF – Suburban office complex, 2.2 million SF – Suburban office complex, 1.0 million SF – CBD office tower, 1.0 million SF – CBD office tower, 1.0 million SF – Proposed mixed-use development (office, multifamily, retail, and parking components) – CBD parking system encompassing six parking structures and 25 surface lots – Suburban mixed-use project encompassing a 300,000 SF office tower, retail outlots and inline retail, an approximately 300-unit apartment tower and parking deck – Proposed CBD world headquarters, 200,000 SF Licenses and Designations – MAI designation, Appraisal Institute – Certified general real estate appraiser, state of Michigan Education Ilya earned a degree of Bachelor of Business Administration degree with a major in finance from Eastern Michigan University. He also completed extensive coursework from the Appraisal Institute. Ilya Barskiy MAI Executive Vice President Valuation & Advisory t 248-871-2327 m 734-945-3360 ilya.barskiy@nmrk.com YEARS OF EXPERIENCE 15+ AREAS OF SPECIALTY Valuation & Appraisal Office / Medical Office Cannabis Related Real Estate Retail Industrial/Logistics Multifamily Self Storage Complex Mixed-Use Car Washes STATE OF MICHIGAN - DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS LICENSE NO.EXPIRATION DATE 1205071463 07/31/2024 ILYA BARSKIY 45143 BARTLETT DRIVE NOVI, MI 48377 GRETCHEN WHITMER GOVERNOR 1205071463LICENSE NO.07/31/2024EXPIRATION DATE THIS DOCUMENT IS DULY ISSUED UNDER THE LAWS OF THE STATE OF MICHIGAN STATE OF MICHIGAN DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS 22213150808 22213150808 DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS BUREAU OF PROFESSIONAL LICENSING P.O. BOX 30670 LANSING, MI 48909 BUREAU OF PROFESSIONAL LICENSING CERTIFIED GENERAL REAL ESTATE APPRAISER LICENSE COMPLAINT INFORMATION: THE ISSUANCE OF THIS LICENSE SHOULD NOT BE CONSTRUED AS A WAIVER, DISMISSAL OR ACQUIESCENCE TO ANY COMPLAINTS OR VIOLATIONS PENDING AGAINST THE LICENSEE, ITS AGENTS OR EMPLOYEES. FUTURE CONTACTS: YOU SHOULD DIRECT INQUIRIES REGARDING THIS LICENSE OR ADDRESS CHANGES TO THE DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS BY EMAILING BPLHELP@MICHIGAN.GOV OR CALL (517) 241-0199 BUREAU OF PROFESSIONAL LICENSING CERTIFIED GENERAL REAL ESTATE APPRAISER LICENSE ILYA BARSKIY ILYA BARSKIY 1 Tony Roberts joined Newmark Valuation & Advisory in 2018 and currently serves as a Senior Managing Director and Market Leader for Michigan. Tony is responsible for business development, aggressively recruiting top appraisal professionals, continuing to provide outstanding service to clients and overseeing Newmark’s team of appraisers in Michigan. He is also involved with the preparation and review of appraisal reports on a diverse spectrum of property types. Tony’s experience encompasses a wide variety of existing and proposed commercial properties, including industrial, office, retail, multifamily, MHPs/MHCs, self storage, automotive dealerships, seniors living facilities, low income housing tax credit properties, churches, schools, vacant land and mixed-use developments. His appraisal and consulting experience includes report preparation for financing, estate planning, collateral monitoring, acquisition and disposition and tax assessment appeal. He specializes in office, industrial, self storage and student housing properties. In addition, Tony’s team has extensive experience appraising cannabis real estate in Michigan as well as across the country. Tony joined Newmark after more than 10 years with CBRE in the Michigan region. He began at CBRE in 2008 as an associate in the Capital Markets Group before transitioning into the Valuation and Advisory Services Group. Prior to working at CBRE Tony worked for the largest commercial mortgage banking firm located in Michigan where he worked in loan origination as well as loan servicing. Licenses and Designations – Certified general real estate appraiser, State of Michigan – Candidate for MAI designation, Appraisal Institute Education Tony earned a Bachelor of Business Administration degree in finance from Eastern Michigan University. More recently, he successfully completed numerous real estate and valuation courses sponsored by the Appraisal Institute. Tony Roberts Senior Managing Director Market Leader – MI t 248-871-2284 m 248-228-4895 tony.roberts@ngkf.com YEARS OF EXPERIENCE 15+ AREAS OF SPECIALTY Office Industrial/Logistics Multifamily Self Storage Retail Student Housing Mixed-Use Cannabis Automotive Dealerships STATE OF MICHIGAN - DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS LICENSE NO.EXPIRATION DATE 1205074174 07/31/2024 ANTHONY M ROBERTS GRETCHEN WHITMER GOVERNOR 1205074174LICENSE NO.07/31/2024EXPIRATION DATE THIS DOCUMENT IS DULY ISSUED UNDER THE LAWS OF THE STATE OF MICHIGAN STATE OF MICHIGAN DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS 22192150730 22192150730 DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS BUREAU OF PROFESSIONAL LICENSING P.O. BOX 30670 LANSING, MI 48909 BUREAU OF PROFESSIONAL LICENSING CERTIFIED GENERAL REAL ESTATE APPRAISER LICENSE COMPLAINT INFORMATION: THE ISSUANCE OF THIS LICENSE SHOULD NOT BE CONSTRUED AS A WAIVER, DISMISSAL OR ACQUIESCENCE TO ANY COMPLAINTS OR VIOLATIONS PENDING AGAINST THE LICENSEE, ITS AGENTS OR EMPLOYEES. FUTURE CONTACTS: YOU SHOULD DIRECT INQUIRIES REGARDING THIS LICENSE OR ADDRESS CHANGES TO THE DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS BY EMAILING BPLHELP@MICHIGAN.GOV OR CALL (517) 241-0199 BUREAU OF PROFESSIONAL LICENSING CERTIFIED GENERAL REAL ESTATE APPRAISER LICENSE ANTHONY M ROBERTS ANTHONY M ROBERTS Page 1 of 6 MEMORANDUM OF AGREEMENT for THE PONTIAC REDEVELOPMENT PROJECT between THE COUNTY OF OAKLAND and THE CITY OF PONTIAC I. PARTIES The Parties to this Memorandum of Agreement (MOA) are the County of Oakland, 1200 North Telegraph Road, Pontiac, MI 48341(“County”) and the City of Pontiac 47450 Woodward Avenue, Pontiac, MI 48342 (“City”). II. PURPOSE. The purpose of this MOA is to delineate the responsibilities and obligations of the County and the City regarding the historic transformational investment by the County into the downtown area of the City. III. PURCHASE OF PROPERTIES. Simultaneous with the execution of this MOA the County expects to execute an Assignment of Purchase Agreement for certain real property and a lease in the City. The Purchase Agreement that is subject to the Assignment of Purchase Agreement is attached as Exhibit A to this MOA. Exhibit A is incorporated into this MOA. The real property and lease subject to the Purchase Agreement are specifically described therein and may be collectively referred to as “Properties” or individually referred to as the following in this MOA: (1) the “Judson Building” or “Judson Property”; (2) the “Vacant Lots” comprised of five (5) distinct and separate real properties iden tified as Parcels 1 through 5 in the Purchase Agreement; (3) the “Ottawa I Building” or “Ottawa Tower Property”; and (4) the “Phoenix Center Parking Garage or Parking Garage” or “Ground Lease Property.” IV. AGREEMENT ADMINISTRATION. The City Mayor or their successor or their written designee is the City’s MOA Administrator (hereinafter “the City’s Representative”). The Deputy County Executive responsible for the Economic Development Department or their successor or their written designee is the County’s MOA Administrator (hereinafter “County’s Representative”). Each Party, in writing, must notify the other of their written designees and their contact information. V. RESPONSIBILITIES. The County shall: a. Move forward with the demolition of the Phoenix Center Parking Garage within twenty-four (24) months of the final payment of all the City’s outstanding debt obligations on the Phoenix Center Parking Garage; b. Move forward with the construction of a new parking structure upon approval of a transformational brownfield project, in an amount not less than thirty million dollars ($30,000,000.00), by the City and Michigan Economic Development Page 2 of 6 Corporation (“MEDC”) for land/area currently occupied by the Phoenix Center Parking Garage, which is described in the Purchase Agreement; c. Perform and pay for the repair and reconstruction of portions of Saginaw Street and Orchard Lake Road needed as a result of the demolition of the Phoenix Center Parking Garage and construction of a new parking structure, including the reconnection of Saginaw Street and improvement of Auburn/Orchard Lake Road, if funding for the reconnection and improvement is available. Except as provided in this Section, this MOA does not obligate the County to repair, maintain, and operation of Saginaw Street; d. Transfer the work location of at least 500 County employees to the Judson Building ; and e. Work with the City to designate green space that shall be utilized for public use. The area designated for consideration of green space shall be all space that is not occupied by a new parking structure that is north of Orchard Lake Road and South of Water Street between the Woodward loop; and f. Work with the City to develop a campus plan, which shall include park space north of Orchard Lake Road. The City shall receive no less than 2 acres north of Auburn, the dimensions of which shall be no less than 226’ by 390’. The parcel will have direct access to Water St. and/or Saginaw St. Upon completion of the plan, Oakland County shall deed all designated park space including riparian, mineral, water, and air rights, to the City of Pontiac; and g. Agree to seek approval of the project through the City’s zoning and planning process. The City shall: a. Pass a resolution by August 16, 2023, that obligates the City to extinguish and pay any current outstanding debt obligations on the Phoenix Center Parking Garage within 30 days of receiving their FY 2024 enhancement grant funding; b. Notwithstanding any other provision to the contrary, resolve and pay for any and all Claims, (as defined below) against the City regarding the Phoenix Center Parking Garage that occurred or arose before August 16, 2023; c. Pass a resolution by August 16, 2023 that obligates the City to waive any and all claims by the City to the Properties, including the elimination or deletion of Section 7 of the December 31, 2021 Memorandum of Understanding (“MOU”), which involves the transfer of certain real properties (Vacant Lots—Parcel 1 and Parcel 5) to the City. The MOU is attached as Exhibit B and is incorporated into this MOA. The City approves the conveyance of the Vacant Lots (Parcels 1 thru 5) to the County; d. Convey fee simple title to the Phoenix Center Parking Garage (the structure and the real property upon which the structure is located) via a warranty deed, with no reversionary rights, for the consideration set forth in “County’s Responsibilities” Section V of this MOA, together with all improvements and appurtenances, including but not limited (a) all leasehold rights, (b) all tenements, hereditaments, privileges and appurtenances thereto belonging or in any way appertaining thereto, (c) all water, air, riparian and mineral rights, (d) the use of appurtenant easements, whether or not of record, strips and rights of way abutting, adjacent, contiguous or Page 3 of 6 adjoining the Properties, (e) all tangible and intangible personal property located thereat, (f) all fixtures, equipment and other items attached to the improvements located at the Phoenix Center Parking Garage, (h) all fixtures, equipment and other items attached to the improvements at the Phoenix Center Parking Garage, (i) all rights of the City under any express or implied guaranties warranties, indemnifications and other rights, if any, and which the City may have against suppliers, laborers, materialmen, contractors or subcontractors arising out of or in connection with the installation, construction and maintenance of the improvements, fixtures and personal property on or about the Phoenix Center Parking Garage, (j) all assignable licenses, franchises, rights and governmental or other permits, authorizations, consents and approvals, including those necessary to own and/or operate the Phoenix Center Parking Garage, to the extent that the same are legally assignable and (k) all future land division rights, if any. The warranty deed set forth in this Section shall be executed and delivered to the County by [INSERT DATE]. The County shall be responsible to record the warranty deed; and e. Coordinate with the County regarding any potential federal, state, or local grants related to the demolition of the Phoenix Center, the construction of a new parking structure, and the repair and reconstruction of portions of Saginaw Street and Orchard Lake Road needed as a result of the demolition of the Phoenix Center Parking Garage and construction of a new parking structure. VI. LIABILITY. a. Except as otherwise provided herein, each Party shall be responsible for any Claims made against that Party by a third-party and for the acts or omissions of its employees, volunteers, officers, or officials arising under or related to this MOA. b. Except as provided herein, each Party shall seek its own legal representation and bear the costs associated with such representation, including judgments and attorney fees, for any Claim that may arise from the performance of this MOA. c. Each Party shall be solely responsible for all costs, fines and fees associated with any acts or omissions by its employees, volunteers, officers, or officials arising under or related to this MOA. d. Neither Party shall have any right under this MOA or under any other legal principle to be indemnified or reimbursed by the other Party or any of its agents in connection with any Claim. e. Performance of this MOA is a governmental function and government service. This MOA does not, and is not intended to, impair, divest, delegate, or contravene any constitutional, statutory, and/or other legal right, privilege, power, obligation, duty, or immunity of the Parties. Nothing in this MOA shall be construed as a waiver of governmental immunity. f. In no event shall either Party be liable to the other Party or any other person, for any consequential, incidental, direct, indirect, special, and punitive or other Page 4 of 6 damages arising out of this MOA. g. “Claims” as used in this MOA means any alleged losses, claims, complaints, demands for relief or damages, lawsuits, causes of action, proceedings, judgments, deficiencies, liabilities, penalties, litigation, costs, and expenses, including, but not limited to, reimbursement for reasonable attorney fees, witness fees, court costs, investigation expenses, litigation expenses, amounts paid in settlement, and/or other amounts or liabilities of any kind which are incurred by or asserted against a Party, or for which a party may become legally and/or contractually obligated to pay or defend against, whether direct, indirect or consequential, whether based upon any alleged violation of the federal or the state constitution, any federal or state statute, rule, regulation, or any alleged violation of federal or state common law. VII. GENERAL TERMS AND CONDITIONS. a. Neither Party shall delegate or assign any obligations or rights under this MOA without the prior written consent of the other Party. For purposes of this Section, consent for the County shall be given by the County Representative or his/her successor and consent for the City shall be given by the City Representative. b. In addition to the rights and remedies set forth herein, for all Claims arising from or under this MOA the Parties shall have all remedies available to it under the law, including the right to bring an action for specific performance of this MOA. c. Nothing in this MOA shall be construed as creating an employer-employee relationship between County and the City. d. Except as provided for the benefit of the Parties, this MOA does not and is not intended to create any obligation, duty, promise, contractual right or benefit, right to indemnification, right to subrogation, and/or any other right in favor of any other person or entity. e. Absent a written waiver, no act, failure, or delay by a Party to pursue or enforce any rights or remedies under this MOA shall constitute a waiver of those rights with regard to any existing or subsequent breach of this MOA. No waiver of any term, condition, or provision of this MOA, whether by conduct or otherwise, in one or more instances shall be deemed or construed as a continuing waiver of any term, condition, or provision of this MOA. No waiver by either Party shall subsequently affect its right to require strict performance of this MOA. f. If a court of competent jurisdiction finds a term or condition of this MOA to be illegal or invalid, then the term or condition shall be deemed severed from this MOA. All other terms, conditions, and provisions of this MOA shall remain in full force. g. The section and subsection numbers, captions, and any index to such sections and subsections contained in this MOA are intended for the convenience of the Page 5 of 6 reader and are not intended to have any substantive meaning. The numbers, captions, and indexes shall not be interpreted or be considered as part of this MOA. Any use of the singular or plural, any reference to gender, and any use of the nominative, objective or possessive case in this MOA shall be deemed the appropriate plurality, gender or possession as the context requires. h. Notwithstanding any other term or provision of this MOA, neither Party shall be liable to the other for any failure of performance hereunder if such failure is due to any cause beyond the reasonable control of that Party and that Party cannot reasonably accommodate or mitigate the effects of any such cause. Such cause shall include, without limitation, acts of God, floods, fire, explosion, vandalism, national emergencies, insurrections, riots, wars, strikes, lockouts, work stoppages, other labor difficulties, or any law, order, regulation, direction, action, or request of the United States government or of any other government (not including the Parties). Reasonable notice shall be given to the affected Party of any such event. i. Notices given under this MOA shall be in writing and shall be personally delivered, sent by express delivery service, certified mail, or first class U.S. mail postage prepaid, and addressed to the person listed below. Notice will be deemed given on the date when one of the following first occur: (i) the date of actual receipt; (ii) the next business day when notice is sent express delivery service or personal delivery; or (iii) three days after mailing certified U.S. mail. i. If Notice is sent to County, it shall be addressed and sent to the Chairperson of the Oakland County Board of Commissioners, 1200 North Telegraph Road, Pontiac, Michigan 48341 and the Oakland County Executive, 2100 Pontiac Lake Road, Waterford, Michigan 48328. ii. If Notice is sent to the City, it shall be addressed and sent to the City Clerk, 47450 Woodward Avenue, Pontiac, Michigan 48342 and the City Mayor, 47450 Woodward Avenue, Pontiac, Michigan 48342. iii. Either Party may change the individual to whom Notice is sent and/or the mailing address by notifying the other Party in writing of the change. j. This MOA shall be governed, interpreted, and enforced by the laws of the State of Michigan. The Parties shall comply with all federal, state, and local laws, rules, regulations and ordinances. Except as otherwise required by law or court rule, any action brought to enforce, interpret, or decide any Claim arising under or related to this MOA shall be brought in the 6th Judicial Circuit Court of the State of Michigan, the 50th District Court of the State of Michigan, or the United States District Court for the Eastern District of Michigan, Southern Division, as dictated by the applicable jurisdiction of the court. Except as otherwise required by law or court rule, venue is proper in the courts set forth above. Page 6 of 6 k. All disputes arising under or relating to the interpretation, performance, or nonperformance of this MOA shall first be submitted to the City Representative and the County Representative for possible resolution. If the City Representative and the County Representative cannot resolve the dispute, then the dispute shall be submitted to the signatories (or their successors) of this MOA for possible resolution. l. This MOA may be executed in any number of counterparts, each of which shall be deemed an original agreement, but all of which together shall constitute one MOA. Copies (photo, fax, or electronic) of signatures to this MOA will be deemed originals and may be relied on to the same extent as originals. m. This MOA represents the entire agreement and understanding between the Parties regarding [INSERT TOPIC]. This MOA supersedes all other oral or written agreements between the Parties regarding that subject matter. The language of this MOA shall be construed as a whole according to its fair meaning, and not construed strictly for or against any Party. VIII. TERM AND TERMINATION. a. This MOA shall commence on the date it is executed by both Parties (“Effective Date”) and shall end [INSERT DATE]. b. Upon written notice, a Party may terminate this MOA for default by the other Party pursuant to the following procedure: (1) the non-defaulting Party gives the defaulting Party written notice specifically identifying the default(s) and (2) the defaulting Party does not cure the default within sixty (60) calendar days of receiving the written notice of default or the defaulting party does not commence to cure the default within sixty (60) calendar days of receiving written notice of the default and does not diligently pursue the cure to completion, if the default is of such a nature that it cannot be cured within the sixty (60) day period. IX. SIGNATURES THE COUNTY OF OAKLAND By: ________________________________ Date:_______________________ Printed Name: David T. Woodward, Chairperson Title: Oakland County Board of Commissioners CITY OF PONTIAC By: ________________________________ Date:_______________________ Printed Name: Title: 48033560.4 ASSIGNMENT OF PURCHASE AGREEMENT IN CONSIDERATION of One ($1.00) Dollar, and other valuable consideration, the receipt and adequacy of which is hereby acknowledged, FARBMAN ACQUISITION, LLC, a Michigan limited liability company (“Assignor”), hereby assigns, transfers and conveys to OAKLAND COUNTY, a Michigan constitutional and municipal corporation (“Assignee”), all of Assignor’s right, title and interest in and to that certain Purchase Agreement dated as of May 17, 2023, as amended by that certain First Amendment of Purchase Agreement dated as of July 12, 2023 (collectively, the “Purchase Agreement”), by and between Assignor, as purchaser, and 31 E Judson LLC, a Michigan limited liability company, Ottawa Towers 2021, LLC, a Michigan limited liability company, Excellor LLC, a Michigan limited liability company, Excellor 2 LLC, a Michigan limited liability company, Excellor 3 LLC, a Michigan limited liability company, Excellor 4 LLC, a Michigan limited liability company, Excellor 5 LLC, a Michigan limited liability company, Excellor 6 LLC, a Michigan limited liability company, Excellor 7 LLC, a Michigan limited liability company, Kingsville Properties LLC, a Michigan limited liability company, Kingsville Properties II LLC, a Michigan limited liability company, Kingsville Properties III LLC, a Michigan limited liability company, and PhoenixRisingPontiac, LLC, a Michigan limited liability company, collectively, as seller, and Assignee hereby assumes all of Assignor’s right, title and interest in and to the Purchase Agreement. The Purchase Agreement is attached and incorporated into this Assignment as Exhibit A. The Assignee agrees to perform the obligations of the Assignor under the Purchase Agreement, including, without limitation, the funding of any earnest money deposit and payment of all other amounts required to be funded by the Purchaser (as defined in the Purchase Agreement), and performance of all covenants of Purchaser, under the Purchase Agreement. This Assignment of Purchase Agreement may be executed in telecopy (facsimile) or electronic (email) copies and facsimile or electronic signatures shall be binding upon the parties and shall have the same full force and effect as if an original executed copy of this Assignment of Purchase Agreement had been delivered. [Remainder of page intentionally left blank] EXHIBIT A 2 48033560.4 IN WITNESS WHEREOF, the parties have executed this Assignment of Purchase Agreement as of July ____, 2023 ASSIGNOR: FARBMAN ACQUISITION, LLC, a Michigan limited liability company By: Name: Andy Gutman Its: Authorized Representative ASSIGNEE: OAKLAND COUNTY, a Michigan constitutional and municipal corporation By: Name: Its: _____________________________________ By: Name: Its: _____________________________________ EXHIBIT A 45652671.1 EXHIBIT “A” Purchase Agreement [See Attached] EXHIBIT A Exhibit A EXHIBIT A Exhibit A EXHIBIT A Exhibit A EXHIBIT A Exhibit A EXHIBIT A Exhibit A EXHIBIT A Exhibit A EXHIBIT A Exhibit A EXHIBIT A Exhibit A EXHIBIT A Exhibit A EXHIBIT A Exhibit A EXHIBIT A Exhibit A EXHIBIT A Exhibit A EXHIBIT A May 17 Exhibit A EXHIBIT A Exhibit A EXHIBIT A Exhibit A EXHIBIT A Exhibit A EXHIBIT A Exhibit A EXHIBIT A Exhibit A EXHIBIT A Exhibit A EXHIBIT A Exhibit A EXHIBIT A Exhibit A EXHIBIT A Exhibit A EXHIBIT A Exhibit A EXHIBIT A Exhibit A EXHIBIT A Exhibit A EXHIBIT A Exhibit A EXHIBIT A Exhibit A EXHIBIT A Exhibit A EXHIBIT A Exhibit A EXHIBIT A Exhibit A EXHIBIT A Exhibit A EXHIBIT A Exhibit A EXHIBIT A Exhibit A EXHIBIT A Exhibit A EXHIBIT A Exhibit A EXHIBIT A EXHIBIT B EXHIBIT B EXHIBIT B EXHIBIT B EXHIBIT B EXHIBIT B EXHIBIT B EXHIBIT B EXHIBIT B EXHIBIT B