APPRAISAL OF REAL PROPERTY

FHA/VA Case No. Page # 1

APPRAISAL OF REAL PROPERTY

XXXXXX

New York, NY 10011

Block: XXX Lot: 11

XXXXXXXXX

5,000,000

12/30/2013

Alexander M. Yampolsky

Form GA1V - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE

LOCATED AT

FOR

OPINION OF VALUE

AS OF

BY


LAVAL, LLC. ( 917) 495-9008

Form 71B1 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE

R15-04642

2 DD 15

0091.00

XXXXXXXXX

XXXXXX

New York New York NY 10011

Block: XXX Lot: 11

N/A N/A N/A

Conventional - property rights appraised are Leased Fee

XXXXXXXXX N/A

XXXXXXX 06/26/2015 XXXXX

Interior

Comparable Sales

Scope of work

Limiting Conditions and Assumptions

5 1 84

10

0-2

50,000 10,000,000 1,000,000

new 130 5

3,000,000 15,000,000 5,000,000

70 150 80

Walk-up/Elevator 4-40

60 70+/- Average

0-5

on block

NYC

on block

.5 M

1 M

No incompatible land uses noted during our inspection. Overall property

appeal and maintenance is average.

N/A -The rental market is active in the subject area, with good demand for residential rental units and

retail/office space.

N/A -The rental market is active in the subject area, with good demand for residential rental units and

retail space.

Potential exists for adding units in the area with spot new construction

ongoing.

No

No known probable changes in the economic base of the area. Economic conditions stabile at present time.

The subject is located in the

Chelsea section of Manhattan. Good residential and commercial location. See addenda for further details.

25' X 98.75' subject to survey 2,452

C6-3X Residential and commercial use permitted.

Macadam

Adequate

Level as grade

Average/Typical

Appear adequate

No other known adverse easements or encroachments.

Typical utility easements and common walls

TO B

E C

OM

PLE

TED

BY

LEN

DER

APPRAISAL REPORT-RESIDENTIAL INCOME PROPERTYThis form may be used for appraisal of income producing properties provided the loan requested does not exceed $750,000.

Borrower/Client File No.

Map Reference

Census TractCounty State Zip Code

Date of Sale Loan Requested $

Fee Leasehold (attach completed Lease Analysis FHLMC Form 461)

Lender's Address

Date By

Note: FHLMC/FNMA do not consider the racial composition of the neighborhood to be a relevant factor and it must not be considered in the appraisal.

Property Address

City

Legal Description

Current Sale Price (if applicable) $

Terms of Sale

Property Rights Appraised

Lender

Instructions to Appraiser: The purpose of this appraisal is to estimate the current Market Value of the Subject Property. The Definition of Market Value is as set forth in CertificationAnd Statement Of Limiting Conditions (FHLMC 439).

Other Information

Appraisal requested from

Items 1, 2, 4, 5, & 6 are required. Attach additional items and check box if items are considered appropriate for this appraisal or are requested by Lender.

1.

2.

3.

4.

5.

6.

Descriptive photographs of subject property

Descriptive photographs of street scene

Photographs of

Sketch or floor plan of typical units

Owner's current certified rent roll if existing, or

pro forma if proposed or incomplete

Owner's income and expense statement

pro forma income and expense statement

, or

7.

8.

9.

10.

11.

12.

13.

Map(s)

Plot plan or survey

Qualifications of Appraiser

Lease Analysis FHLMC 461 (required if leasehold interest appraised)

Summary of reciprocal agreements with other owners for use of parking,

driveways, recreational facilities, private streets, (required if applicable)

NEI

GH

BO

RH

OO

D

Location

Built-up

Present land use

Change in present land use

Property values

Housing demand/supply

Predominant occupancy

Condominium:

Single Family:

Typical apartment:

Estimated neighborhood apartment vacancy rate

Describe any incompatible land uses and overall property appeal and maintenance level

Describe any oversupply of units in area by type and rental

Describe any shortage of units in area by type and rental

Describe potential for additional units in area considering land availability, zoning, utilities, etc.

Is population of relevant market area of insufficient size, diversity and financial ability to support subject property and its amenities ? If yes, specify.

Describe any probable changes in the economic base of neighborhood which would favorably or adversely affect apartment rentals(e.g. employment centers, zoning)

General comments including either favorable or unfavorable elements not mentioned (e.g. public parks, view, noise, parking congestion)

Price range $

Age

Price range $

Age

Urban

Over 75%

% Condominiums

% Commercial

Not Likely

(*) From

Increasing

In balance

Owner

Suburban

25% to 75%

% 1-Family

%

Likely (*)

To

Stable

Shortage

Tenant

Rural

Under 25%

% Apartments

Taking Place (*)

Declining

Oversupply

% Vacant

to $

yrs. to

to $

yrs. to

yrs.

yrs.

Predominant $

Predominant

Predominant $

Predominant

No. Stories

Condition

Type

No. Units

Rent Levels:

Age

Increasing

yrs.

Stable Declining

% Decreasing Stable Increasing Rent Controls No Yes (comments on page 4 if Yes)

Employment Stability

Adequacy of Utilities

Convenience of Schools

Police and Fire Protection

Recreational Facilities

Property Compatibility

Protection from Detrimental Conditions

General Appearance of Properties

Appeal to Market

Public Transportation

Employment Centers

Shopping Facilities

Grammar Schools

Freeway Access

yrs.

yrs.

Access or Convenience

OVERALL RATING Good Avg. Fair Poor

Distance

SIT

E

Dimensions

Zoning (classification, uses and densities permitted)

Highest and best use

Electricity

Gas

Water

Sanitary Sewer

COMMENTS (including any easements or encroachments or any nonconforming use(s) of present improvements)

Area Sq. ft. or Acres

Present Improvements do do not conform to zoning regulations

Present use Other (specify)

Public Comm. Individual Street Public Private Ingress and Egress (Adequacy)

TopographySurface

Storm Sewer

Curb & Gutter

Sidewalk

Street Lights

Sep.Tnk. Alley

View Amenity

Drainage and Flood Conditions

Is the property located in a HUD Identified Special Flood Hazard Area?Underground Electricity & Telephone

FHLMC Form 71B-Rev. 8/77 [Y2K] Page 1



1931 5

1 7 18 6 None N/A

Masonry Brick Rubber membrane/good

Sheet-rock/average Wood/tile/average Sheetrock/tile/average

Unable to observe Adequate Adequate

HVAC and steam gas Unknown - no access

HVAC for retail. individual units for apartments Adequate

None N/A N/A

Door locks, intercom

Adequate gas water heaters

Adequate

Adequate

None

N/A N/A

The subject is in overall average condition. No functional or

external inadequacies. Typical mixed-use building (addenda)

The Cost Approach was not developed due to lack of applicability (see reconciliation of values in addenda).

See addenda

See Addenda See Addenda See Addenda

Se e add

DES

CR

IPTI

ON

OF

IMP

RO

VEM

ENTS

Existing Approx. Year Built Proposed Under Construction Elevator Walk-up No. of Stories Row or Townhouse

No. of Bldgs. No. of Units No. of Rooms No. of Baths Parking Spaces: No. Type

Basic Structural System Exterior Walls Roof Covering

Interior Walls Floors Bath Floor and Walls

Insulation Adequacy Adequacy and Soundproofing

Heating: Central Individ. Type Fuel Condition

Air Conditioning: Central Individ. Describe Adequacy and Condition

Elevator(s): Number Automatic Adequacy and Condition

Security Features

Kitchen cabinets, drawers and counter space Adequate Inadequate Good Avg. Fair Poor

Range/Oven Fan/Hood Dishwasher Disposal General appearance of property

Refrigerator Washer Dryer Quality of construction (materials and finish)

Hot Water Heater(s) Condition of improvements

Plumbing Fixtures Rooms size and layout

Electrical Service Closets and storage

Recreational Facilities Plumbing-adequacy and condition

Electrical-adequacy and condition

Amenities and parking facilities

Effective Age Yrs. Estimated Remaining Economic Life Yrs. Appeal to market

COMMENTS: (Special features, functional or physical inadequacies, repairs needed, modernization, etc.)

OVERALL PROPERTY RATING

CO

ST

AP

PR

OA

CH

LAND SALES (complete ONLY if appropriate for this appraisal) Zoning Area Sales Price Date Price per Sq. Ft. or per Unit

1. / $ $ Per

2. / $ $ Per

3. / $ $ Per

Comments & Reconciliation

Estimated Land Value $

APARTMENT BUILDING(S)-ESTIMATED REPRODUCTION COST NEW

X = Sq. ft. X (Stories) = Sq. ft. X $ $



OTHER IMPROVEMENTS $

$

$

TOTAL ESTIMATED COST NEW OF IMPROVEMENTS $

LESS DEPRECIATION

DEPRECIATED VALUE OF IMPROVEMENTS $

ADD-ESTIMATED LAND VALUE $

INDICATED VALUE BY THE COST APPROACH (IN FEE SIMPLE) $

IF LEASEHOLD DEDUCT VALUE OF FEE INTEREST (ATTACH CALCULATIONS) $

INDICATED VALUE BY THE COST APPROACH (LEASEHOLD) $

CO

MP

AR

AB

LE R

ENTA

L D

ATA

ITEM COMPARABLE NO. 1 COMPARABLE NO. 2 COMPARABLE NO. 3

Address

Proximity to subj.

Rntl. survey date

Brief No. Units No. Vacant Age Yrs No. Units No. Vacant Age Yrs No. Units No. Vacant Age Yrs

description

of property

improvements

Rm. Count Size Monthly Rent Rm. Count Size Monthly Rent Rm. Count Size Monthly Rent

Tot BR b Sq. Ft. /$ Rm Tot BR b Sq. Ft. /$ Rm Tot BR b Sq. Ft. /$ RmIndividual

unit

breakdown

Utilities, furn-iture andamenities in-cluded in rent

Comparison

to subjectincluding rental

concessions,

if any

MO

NTH

LY R

ENT

SC

HED

ULE

SU

BJE

CT

Utilities included in actual rents:

Utilities included in forecasted rents:

Water

Water

Gas

Gas

Heat

Heat

Electric

Electric

Air Conditioning

Air Conditioning

No.of

Units

Unit RM Count

Tot. BR b

Total

Rooms

Sq Ft

Area

Per Unit

No.

Units

Vacant

ACTUAL RENTS

Per Unit

Unfurnished Furnished

Total

Rents

FORECASTED RENTS

Per Unit

Unfurnished Furnished

Total

Rents

Per

Sq. Ft. or Room

$ $ $ $ $ $ $c|

TOTAL $ $

FHLMC FORM 71B - Rev. 8/77 Page 2



XXXXXX

New York

2 DD 15

2,452 SF

7 0

5-story mixed-use building

Average

Average

None

None

Average

GBA

LOCATION Average

APPEAL Average

Heat Water/Sewer

Inspection/owner

N/A

N/A

N/A

Price Unit:

Net Adjustments:

Adjusted Price :

128 W 23rd St

New York, NY 10011

0.07 miles SE

2 DD 15

N/A

See addenda

See addenda

Geo Data

Sale

43 W 27th St

New York, NY 10001

0.27 miles E

2 DD 15

N/A

See addenda

See addenda

Geo Data

Sale

149 W 27th St

New York, NY 10001

0.20 miles NE

2 DD 15

N/A

See addenda

See addenda

Geo Data

Sale

See addenda for comments on adjustments and reconciliation.

5,750,000

5

See addenda for more info.

Addendum Addendum

$0.25/SF

4,140,000

See addendum

MA

RK

ET A

PP

RO

AC

H

ITEM SUBJECT COMPARABLE NO. 1 COMPARABLE NO. 2 COMPARABLE NO. 3

Address

Proximity to subject

Map code

Lot size

Brief description of

building

improvements

Quality

Condition

Recreational facilities

Parking

Tenant appeal

Unit

breakdown

Util. paid by owner

Data source

Price

Sale-Listing-Offer

Date of sale

Terms

(Including conditions

of sale and

financing terms)

Gross Annual Income

Gross Ann. Inc. Mult. (1)

Net Annual Income

Expense Percentage (2)

Overall Cap. Rate (3)

Price per unit

Price per room

Price gross bldg. area

No. Units:

Year Built:

No. Vac. No. Units:

Year Built:

No. Vac. No. Units:

Year Built:

No. Vac. No. Units:

Year Built:

No. Vac.

No. of

Units Total BR Bath

UNIT ROOM COUNT No. of

Units Total BR Bath


Units Total BR Bath


Units Total BR Bath

UNIT ROOM COUNT

$ Unf. F $ Unf. F $ Unf. F $ Unf. F

Complete as many of the following items as possible using data effective at time of sale

$ $ $ $

$ $ $ $

% % % %

% % % %

$ $ $ $

$ $ $ $

$ $ $ $/sq. ft. bldg. area /sq. ft. bldg. area /sq. ft. bldg. area /sq. ft. bldg. area

(1) Sale Price / Gross Annual Income (2) Total Annual Expenses / Total Gross Annual Income (3) Net Annual Income / Price

RECONCILIATION:

INDICATED VALUE BY MARKET APPROACH

INC

OM

E A

PP

RO

AC

H

INCOME EXPENSES ACTUAL FORECASTED

Real Estate Taxes* $ $

Other taxes or licenses

Insurance

Unsubordinated ground rent

Fuel

Gas

Electricity

Water and sewer

Trash removal

Pest control

Maintenance and repairs

Interior and exterior decorating

Cleaning expenses and supplies

Management (Off-site)

Res. Mgr. salary & apartment

Janitor(s) salary & apartment

Miscellaneous

REPLACEMENT RESERVES

Carpeting and drapes

Ranges and refrigerators

Dishwashers and disposals

Individual heating & AC units

TOTAL EXPENSES & REPL. RES.

INDICATED VALUE BY INCOME APPROACH $

$ $

Total Monthly Apartment Forecasted Rents

Other Monthly Income (Itemize)

Total Gross Monthly Forecasted Income

Total Gross Annual Forecasted Income

Less Forecasted Vacancy and Collection Loss

Effective Gross Annual Income

Less Forecasted Expenses & Replacement Reserves

Net Annual Income from Total Property

Less Return on and Recapture of Depreciated Value of

Furnishings

Net Annual Income from Real Property

Capitalized as follows:

*Real Est. Taxes

Total Assessed Value $

Comments:

$

$

$

$

$

$

$

$

$

$

$Actual Est. Tax Rate Per $100

($ @ %)

( %) (

(

(

)

)

)




The subject is in overall average condition. See addenda for comments.

Normal assumptions and limiting conditions

apply. The intended use of this report is to assist the client in assets valuation. The intended user is the client. See addenda for comments.

Not used

5,750,000

4,140,000

See addenda.

5,000,000

09/01/2015


GENERAL COMMENTS (Including comments on any items rated poor or fair)

CONDITIONS AND REQUIREMENTS OF APPRAISAL (include required repairs, replacements, painting, termite inspections, etc.)

RECONCILIATION AND VALUE CONCLUSION

Indicated Value by the Cost Approach $

Indicated Value by the Market Approach $

Indicated Value by the Income Approach $

FINAL RECONCILIATION

I certify, that to the best of my knowledge and belief, the statements made in this report are true and I have not knowingly withheld any significant information; that I have

personally inspected subject property, both inside and outside, and have made an exterior inspection of all comparable sales listed herein; that I have no interest, present

or contemplated, in subject property or the participants in the sale; that neither the employment nor compensation to make said appraisal is contingent upon any value

estimate; and, that all contingent and limiting conditions are stated herein. Certification and Statement of Limiting Conditions

(FHLMC Form 439 Rev. 6/93) applies ( on file with Client Attached).

As a result of my investigation and analysis, my estimate of Market Value of the subject property as of is

$

Date

Date

Date

Appraiser

Appraiser

If applicable, complete the following

Supervising or Review Appraiser

Did Did Not Physically Inspect Property

FOR LENDER'S USE ONLY (completion optional)

Loan Recommended $ @ %. Term yrs. Principal & Interest $ /mo. $ /annually

Subject to:

Borrower's Cost or Purchase Price $ Appraised Value $ Loan to Appraised Value %

Loan: Per Unit $ Per Room $ Per Sq. Ft. of Building Area $

Gross Annual Forecasted Income $ Gross Annual Income Multiplier Overall Capitalization Rate %

Forecasted Annual Expenses and Replacement Reserves $ ( % of Gross Annual Forecasted Income)

Break-even Point (this loan): (Annual Exp. & RR $ + Annual P & I pymts. $ ) / (Gross Annual Income $ ) = %

(All financing) : (Annual Exp & RR $ + Annual P & I pymts. for all financing $ ) / (Gross Annual Inc. $ ) = %

Borrower's Return on Appraised Equity (Net Annual Inc. $

(Appraised Value $

(-) Annual P & I pymts $

(-) Loan Amt. $

) = $

) = $

(1)

(2)

$ (1) / $ (2) = %

Comments or Committee Action



LAVAL, LLC. ( 917) 495-9008

XXXXXX

New York

2 DD 15

2,452 SF

7 0

5-story mixed-use building

Average

Average

None

None

Average

GBA

LOCATION Average

APPEAL Average

Heat Water/Sewer

Inspection/owner

N/A

N/A

N/A

Price Unit:

Net Adjustments:

Adjusted Price :

52 W 21st St

New York, NY 10010

0.22 miles SE

2 DD 15

N/A

See addenda

See addenda

Geo Data

Sale

4

129 W 29th St

New York, NY 10001

0.30 miles NE

2 DD 15

N/A

See addenda

See addenda

Geo Data

Sale

5

209 W 18th St

New York, NY 10011

0.26 miles SW

2 DD 15

N/A

See addenda

See addenda

Geo Data

Sale

6

MA

RK

ET D

ATA

AN

ALY

SIS

MARKET DATA ANALYSISRESIDENTIAL INCOME PROPERTY

ITEM SUBJECT COMPARABLE NO. COMPARABLE NO. COMPARABLE NO.

Address

Proximity to subject

Map code

Lot size

Brief description of

building

improvements

Quality

Condition

Recreational facilities

Parking

Tenant appeal

Unit

breakdown

Util. paid by owner

Data source

Price

Sale-Listing-Offer

Date of sale

Terms

(Including conditions

of sale and

financing terms)

Gross Annual Income

Gross Ann. Inc. Mult. (1)

Net Annual Income

Expense Percentage (2)

Overall Cap. Rate (3)

Price per unit

Price per room

Price gross bldg. area

No. Units:

Year Built:

No. Vac. No. Units:

Year Built:

No. Vac. No. Units:

Year Built:

No. Vac. No. Units:

Year Built:

No. Vac.

No. of

Units Total BR Bath


Units Total BR Bath


Units Total BR Bath


Units Total BR Bath

UNIT ROOM COUNT

$ Unf. F $ Unf. F $ Unf. F $ Unf. F

Complete as many of the following items as possible using data effective at time of sale

$ $ $ $

$ $ $ $

% % % %

% % % %

$ $ $ $

$ $ $ $

$ $ $ $/sq. ft. bldg. area /sq. ft. bldg. area /sq. ft. bldg. area /sq. ft. bldg. area

CO

MM

ENTS

Comments:


Form MAP.LOC - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE

Location Map

XXXXXXXXX

XXXXXX


XXXXXXXXX

Borrower

Lender/Client

Property Address

City County State Zip Code


Sales Apprroach

Form SCNLGL - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE


Rent Roll



Income Approach


Comments regarding marketing/sale historyThere have been recorded sales of the subject in the past 5 years. The subject is not for sale. Typicalmarketing and exposure time is 6 to 12 months.

Neighborhood analysisThe subject is located in the Chelsea section of Manhattan. The area is a residential community comprisedof a mix of, mixed-use, commercial and apartment buildings and few1-4 family homes. The subject is on

West 23rd Street, a major commercial and automotive thoroughfare. Surrounding the subject are similarresidential and mixed-use properties. The subject is considered to have good commercial and residentiallocation. It is in close proximity to major thoroughfares, highways and public transportation. There wereno known adverse factors affecting marketability.

Description of improvementsThe subject consists of an attached 5-story walk-up mixed-use loft building. The basement, ground floor,and 2-nd floors used as the owner occupied restaurant. It was in overall average condition as of date of

value. The 3, 4 and 5th are apartments. The units on the 3rd floor were inspected. The units reported to bein overall average condition and good renovated with economy grade fixtures. The common areas areclean in overall average condition with no major deferred maintenance or needed repairs.

The mechanical and structural components are in average. There is a gas fired boiler and water heaterprovide heat and hot water for the buildings. They appear to be in adequate working condition. There wasno access to the roof; it reported to be in average condition. No interior leaks noted.The electrical serviceis in average condition and appears to be adequate. The windows are double hung replacement units. Theexterior is in overall average condition.

There was no other noted deferred maintenance or repairs needed. The condition of the subject is a typicalto the market. The attached photographs provide additional details regarding the subject's condition.

Comments on Sales Comparison Approach

The comparables are recent sales of walk-up mixed-use loft buildings. All sales within the subject's marketarea. All sales transferred since 2012. According to the most published reports, market stabilized formixed-use buildings since 2012. No market condition adjustments are warranted.

Location: The subject has good retail location on busy West 23rd Street. Sales 2 to 6 are located on theside streets. These are slightly inferior locations and adjusted 5% upward.

Size: sales adjusted for size based on economies of scale concert, the larger buildings sell at lower price onper SF basis and vise-versa for the smaller buildings. Sales were adjusted for size where warranted.

No other adjustments were considered necessary because the sales similar in other of the aspects.

After adjustments, the sales indicate a range between $509/SF to $850/SF the median of $620/SF andaverage of $650/SF. In consideration of all factors affecting the subject, we reconcile a value towardabove the average of the range and conclude $650/SF for the subject.

Therefore:

The “As Is” value:

8,845 SF x $650/SF = $5,749,250

The “As Is” Value via Sales Approach $5,750,000 (rounded)


Supplemental Addendum

Form TADD - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE

R15-04642

XXXXXXXXX

XXXXXX


XXXXXXXXX

Borrower

Lender/Client

Property Address


File No.

Comments on Income Approach

Income consists of the projected annual rental income for a stabilized year of occupancy. Market rents

were analyzed. The subject’s commercial space and apartments on the 3rd floor are owner occupied. We

utilized the reported contract rent for the commercial space and estimated market rent for the 3rd floorapartments. The subject’s commercial rent is slightly below market. However, the commercial tenant paysfor the entire building heat, water and sewer and porter. Based on the above, the subject rent considered atmarket. The remaining apartments are rent stabilized and fall under DHCR rules and regulations. Weutilized the reported rents for these units and assume these are within DHCR guidelines. We surveyed the leasing agents and or other principals involved with the transactions, other appraisers andthis office files. The subject’s rent level is considered in vacancy rate and cap rate development.

Comments on Income & Expense Analysis A vacancy and collection loss of 7% for commercial space and 5% for the apartments is deemedappropriate for the subject. There is adequate demand for residential and commercial space in the area.

Our estimate of expenses was based on the reported, public records and industry standards. We haveutilized the 2013/14 real estate taxes that were reported.

Insurance was estimated at $7,100 or $0.80 per square foot, a reasonable amount for this type of propertyand similar to the reported.

Repairs and maintenance estimated at $6,200, or $0.70/SF, reasonable given overall average condition.We have also taken deductions for supplies, miscellaneous and reserves.

Reserves were projected at 1.5% of the EGI within the typical 1% to 3% range. These buildings aretypically self-managed; however, we have utilized a management/leasing fee figure of 3%. We have alsodeducted for a miscellanies expenses and professional/legal/leasing fees.

We developed overall capitalization rate is 4.25%. The rate falls within the comparable range. This rate isapplied to the forecasted net operating income as follows:

The “As Is” value:

$176,035 /.0425 = $4,142,000

The “As Is” value via the Income Approach rounded to $4,140,000

In formulating a value conclusion, Sales and Income Approaches were considered. The building is aninvestment property and often purchased for the cash flow it produced. Many buildings like the subject areowner occupied, who tend to pay more than the investors. The subject is approximately 50% tenantsoccupied in this instance. Therefore equal weight is given to the Sales Approach and Income approaches.Should be noted, the subject has significant development rights. The subject is within C6-3X zoning withthe maximum commercial FAR of 6.0 and the maximum residential FAR of 9.0. Its current FAR is 3.61and therefore potential for development exists. As per scope of work the development rights were notestimated but considered in value.

A thorough inspection of the site and neighborhood was conducted, and all available data affecting theproperty's value was analyzed. As a result of these investigations and subject to the enclosed limitingconditions, the "as is" market value of the Leased Fee interest of the subject, as of 12/30/2013, is:

($5,000,000)




R15-04642

XXXXXXXXX

XXXXXX


XXXXXXXXX

Borrower

Lender/Client

Property Address


File No.

SCOPE OF WORK

The data contained in this report was obtained from the public records and from knowledgeable leasingagents, real estate brokers and principals active in the subject's area. Geo Data and NYC records wereutilized to identify the subject and comparables. Verification of the comparable sales was accomplishedthrough Geo Data and other public records and principals. Comparable rents were obtained from owners,managing agents, leasing agents and other appraisers. Additional information about size, condition andother pertinent aspects of real estate was obtained from Geo Data and NYC public records. This appraisalis based on the extraordinary assumption that the interior and the exterior of the comparables are typicalfor the area, average for the market and in average condition. Area calculations and dimensions are asindicated in public records. If this extraordinary assumption is untrue, the value of the property may beaffected. The client provided the appraisers with the rent roll and expenses. The appraisal is predicated onthe fact that the rent is being collected and is legal.

Per scope of work the development rights were not estimated but considered in value.

The Income, Sales Comparison and Cost Approaches were all considered.

The Sales Comparison Approach provides good and reliable indicator of value since it is a direct

reflection of market activity. The appraiser analyzed the comparable market area for the past two years to

uncover sales of similar buildings. The price per square foot, per unit and Gross Income Multiplier were

considered. The price per square foot is considered to be the most reliable indicator of value in this case.

The Income Approach provides a reliable indicator of value since these properties are typically purchased

for the cash flow they produce. All the subject’s units rented. The reported rent roll utilized to estimate the

potential gross income and estimated market rent. Estimated market rents were used for the owner

occupied 3rd floor units. Adjusted market rents were also utilized to determine potential future increasesin rents as well as estimates for vacancy and risk factors in the development of the capitalization rate.

Vacancy was determined from market analysis of the subject area. Expenses were determined from

comparative analysis and the subject history. A capitalization rate was determined via the

Mortgage-Equity technique, in addition to individual sales analysis and comparisons to competing rates of

return.

The Cost Approach, which analyzes land value, replacement cost and depreciation, was also considered.

However, the subject building was constructed circa 1931. Depreciation estimates become very subjective

and unreliable as the age of building increases. Land sales of small parcels in similar Zoning Districts are

minimal which further inhibits the use of this approach. For these reasons, the Cost Approach was found

to be unreliable, not applicable and not utilized in this analysis.

USPAP Guidelines on Retrospective Valuation Dates

The effective date of value of this report is 12/30/2013. Statement 3 of USPAP details the standards for

retrospective value opinions. Date of inspection 06/28/2015. USPAP states the following with regard to

the use of data in an appraisal with a retrospective effective date of valuation:

Data subsequent to the effective date may be considered in developing a retrospective value as a

confirmation of trends that would reasonably be considered by a buyer or seller as of that date. The

appraiser should determine a logical cut-off because at some point distant from the effective date, the

subsequent data will not reflect the relevant market. This is a difficult determination to make. Studying

the market conditions as of the date of the appraisal assists the appraiser in judging where he or she should

make this cut-off. In the absence of evidence in the market that data subsequent to the effective date were

consistent with confirmed market expectations as of the effective date, the effective date should be used as

the cut-off for data considered by the appraiser.




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the cut-off for data considered by the appraiser.

The sales used in this report are all within a few months of the effective date and subject to the samemarket conditions, especially considering typical 60-180 day contract periods prior to closings.

EXTRAORDINARY ASSUMPTION:

Our appraised value is under the Extraordinary Assumption that:

· The rents utilized in this report within DHCR requirements actually collected.

An assumption, directly related to a specific assignment, which, if found to be false, could alter theappraiser's opinions or conclusions. Extraordinary assumptions presume as fact otherwise uncertaininformation about physical, legal, or economic characteristics of the subject property; or about conditionsexternal to the property, such as market conditions or trends; or about the integrity of data used in ananalysis. An extraordinary assumption may be used in an assignment only if:· It is required to properly develop credible opinions and conclusions;

· The appraiser has a reasonable basis for the extraordinary assumption;

· Use of the extraordinary assumption results in a credible analysis; and

· The appraiser complies with the disclosure requirements set forth in USPAP for extraordinary

assumptions. (USPAP, 2009)

ASSUMPTIONS AND LIMITING CONDITIONS

This appraisal is made subject to the following assumptions and limiting conditions:The submission of this report does not require future testimony or appearance in court or before any publicagency without special arrangements for that eventuality.

Neither all nor any part of this appraisal shall be disseminated to the general public by the use ofadvertising media, public relations media, news media, sales media or other media for publiccommunication without prior written consent of the signatories of this appraisal report.

As per prior agreement, the Client agrees that this appraisal shall not be quoted or referred to in any reportor financial statement of the Client or in any document filed with any governmental agency without thewritten consent of the appraiser. No responsibility is assumed for matters legal in character or nature, nor matters of survey or ofengineering.

The property is appraised as if free and clear, with no adverse easement, encroachments, restriction, etc.,unless otherwise stated. No opinion is rendered as to the title, which is presumed to be good and held inFee Simple. No violations are assumed to exist. No liability is assumed regarding the existence, if any,for mineral deposits or their influence on value.

Unless otherwise stated in this report, the existence of hazardous substances, including without limitationasbestos, polychlorinated biphenyls, petroleum leakage, or agricultural chemicals, which may or may notbe present on the property, or other environmental conditions, were not called to the attention of nor didthe appraiser become aware of such during the appraiser's inspection. The appraiser has no knowledge ofthe existence of such materials on or in the property unless otherwise stated. The appraiser, however, is notqualified to test such substances, such as asbestos, urea formaldehyde, foam insulation, or other hazardoussubstances or environmental conditions, which may affect the value of the property. The value estimated ispredicated on the assumption that there is no such condition on or in the property or in such proximitythereto that it would cause a loss in value. No responsibility is assumed for any such conditions, or for anyexpertise or engineering knowledge required to discover them. The client is urged to retain an expert in thefield of environmental impacts upon real estate if so desired.

The conclusions and recommendations presented in this report were reached based on our analysis of theinformation available to us from public records, published data sources, subject ownership and principals




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information available to us from public records, published data sources, subject ownership and principals

active in the market. Information, estimates and opinions furnished to the Appraiser, and contained in thereport, were obtained from sources considered reliable and believed to be true and correct. However, theAppraiser can assume no responsibility for accuracy of such items furnished to the Appraiser.

Our conclusions are based upon economic conditions as of the effective date of the appraisal. Anysubsequent, unforeseen adverse economic condition that might occur could impact the subject value.

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

Exposure time is always presumed to precede the effective date of appraisal. A normal exposure time forthe subject property is estimated to be 6-12 months. This conclusion is predicated on interviews withbrokers and other real estate industry sources and on information obtained in the verification process. Thevalue reported herein presumes such an exposure time.




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Form PICPIX.TR - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE

Subject Photo Page

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Subject FrontXXXXXX

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Subject Street

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Photograph Addendum

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Subject street Entrance

Entrance Interior- restaurant

Interior- restaurant Interior- restaurant

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Photograph Addendum

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Interior- restaurant basement kitchen Interior- restaurant basement kitchen

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Form PICINT6 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE

Interior Photos

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Boiler water heater

electrical service electrical service

Staircase Staircase

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Interior Photos

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Typical apartment interior Typical apartment interior



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Comparable 1128 W 23rd St

Comparable 243 W 27th St


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Comparable 452 W 21st St



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Form ACR - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODELAVAL, LLC. ( 917) 495-9008

DEFINITION OF 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, 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 each acting in what he considers his own best interest; (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.

* Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessary

for those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are readily identifiable

since the seller pays these costs in virtually all sales transactions. Special or creative financing adjustments can be made to the

comparable property by comparisons to financing terms offered by a third party institutional lender that is not already involved in the

property or transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession

but the dollar amount of any adjustment should approximate the market's reaction to the financing or concessions based on the

appraiser's judgement.

STATEMENT OF LIMITING CONDITIONS AND APPRAISER'S CERTIFICATION

CONTINGENT AND LIMITING CONDITIONS: The appraiser's certification that appears in the appraisal report is subject to the following

conditions:

1. The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it. The appraiser assumes that

the title is good and marketable and, therefore, will not render any opinions about the title. The property is appraised on the basis of it being under responsible

ownership.

2. The appraiser has provided a sketch in the appraisal report to show approximate dimensions of the improvements and the sketch is included only to assist

the reader of the report in visualizing the property and understanding the appraiser's determination of its size.

3. The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency (or other data sources) and has noted

in the appraisal report whether the subject site is located in an identified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes

no guarantees, express or implied, regarding this determination.

4. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question, unless specific arrangements to do

so have been made beforehand.

5. The appraiser has estimated the value of the land in the cost approach at its highest and best use and the improvements at their contributory value. These

separate valuations of the land and improvements must not be used in conjunction with any other appraisal and are invalid if they are so used.

6. The appraiser has noted in the appraisal report any adverse conditions (such as, needed repairs, depreciation, the presence of hazardous wastes, toxic

substances, etc.) observed during the inspection of the subject property or that he or she became aware of during the normal research involved in performing

the appraisal. Unless otherwise stated in the appraisal report, the appraiser has no knowledge of any hidden or unapparent conditions of the property or

adverse environmental conditions (including the presence of hazardous wastes, toxic substances, etc.) that would make the property more or less valuable, and

has assumed that there are no such conditions and makes no guarantees or warranties, express or implied, regarding the condition of the property. The

appraiser will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such

conditions exist. Because the appraiser is not an expert in the field of environmental hazards, the appraisal report must not be considered as an

environmental assessment of the property.

7. The appraiser obtained the information, estimates, and opinions that were expressed in the appraisal report from sources that he or she considers to be

reliable and believes them to be true and correct. The appraiser does not assume responsibility for the accuracy of such items that were furnished by other

parties.

8. The appraiser will not disclose the contents of the appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice.

9. The appraiser has based his or her appraisal report and valuation conclusion for an appraisal that is subject to satisfactory completion, repairs, or

alterations on the assumption that completion of the improvements will be performed in a workmanlike manner.

10. The appraiser must provide his or her prior written consent before the lender/client specified in the appraisal report can distribute the appraisal report

(including conclusions about the property value, the appraiser's identity and professional designations, and references to any professional appraisal

organizations or the firm with which the appraiser is associated) to anyone other than the borrower; the mortgagee or its successors and assigns; the mortgage

insurer; consultants; professional appraisal organizations; any state or federally approved financial institution; or any department, agency, or instrumentality

of the United States or any state or the District of Columbia; except that the lender/client may distribute the property description section of the report only to data

collection or reporting service(s) without having to obtain the appraiser's prior written consent. The appraiser's written consent and approval must also

be obtained before the appraisal can be conveyed by anyone to the public through advertising, public relations, news, sales, or other media.

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10. We have not performed any appraisal work or other assignments related to the subject property within the three years preceding to his assignment.

11. Alexander Yampolsky meets the current education requirements of the Appraisal Institute as of the date of this appraisal.

APPRAISER'S CERTIFICATION: The Appraiser certifies and agrees that:

1. I have researched the subject market area and have selected a minimum of three recent sales of properties most similar and proximate to the subject property

for consideration in the sales comparison analysis and have made a dollar adjustment when appropriate to reflect the market reaction to those items of significant

variation. If a significant item in a comparable property is superior to, or more favorable than, the subject property, I have made a negative adjustment to reduce

the adjusted sales price of the comparable and, if a significant item in a comparable property is inferior to, or less favorable than the subject property, I have made

a positive adjustment to increase the adjusted sales price of the comparable.

2. I have taken into consideration the factors that have an impact on value in my development of the estimate of market value in the appraisal report. I have not

knowingly withheld any significant information from the appraisal report and I believe, to the best of my knowledge, that all statements and information in the

appraisal report are true and correct.

3. I stated in the appraisal report only my own personal, unbiased, and professional analysis, opinions, and conclusions, which are subject only to the contingent

and limiting conditions specified in this form.

4. I have no present or prospective interest in the property that is the subject to this report, and I have no present or prospective personal interest or bias with

respect to the participants in the transaction. I did not base, either partially or completely, my analysis and/or the estimate of market value in the appraisal report

on the race, color, religion, sex, handicap, familial status, or national origin of either the prospective owners or occupants of the subject property or of the present

owners or occupants of the properties in the vicinity of the subject property.

5. I have no present or contemplated future interest in the subject property, and neither my current or future employment nor my compensation for performing this

appraisal is contingent on the appraised value of the property.

6. I was not required to report a predetermined value or direction in value that favors the cause of the client or any related party, the amount of the value estimate,

the attainment of a specific result, or the occurrence of a subsequent event in order to receive my compensation and/or employment for performing the appraisal. I

did not base the appraisal report on a requested minimum valuation, a specific valuation, or the need to approve a specific mortgage loan.

7. I performed this appraisal in conformity with the Uniform Standards of Professional Appraisal Practice that were adopted and promulgated by the Appraisal

Standards Board of The Appraisal Foundation and that were in place as of the effective date of this appraisal, with the exception of the departure provision of those

Standards, which does not apply. I acknowledge that an estimate of a reasonable time for exposure in the open market is a condition in the definition of market value

and the estimate I developed is consistent with the marketing time noted in the neighborhood section of this report, unless I have otherwise stated in the

reconciliation section.

8. I have personally inspected the interior and exterior areas of the subject property and the exterior of all properties listed as comparables in the appraisal report.

I further certify that I have noted any apparent or known adverse conditions in the subject improvements, on the subject site, or on any site within the immediate

vicinity of the subject property of which I am aware and have made adjustments for these adverse conditions in my analysis of the property value to the extent that

I had market evidence to support them. I have also commented about the effect of the adverse conditions on the marketability of the subject property.

9. I personally prepared all conclusions and opinions about the real estate that were set forth in the appraisal report. If I relied on significant professional

assistance from any individual or individuals in the performance of the appraisal or the preparation of the appraisal report, I have named such individual(s) and

disclosed the specific tasks performed by them in the reconciliation section of this appraisal report. I certify that any individual so named is qualified to perform

the tasks. I have not authorized anyone to make a change to any item in the report; therefore, if an unauthorized change is made to the appraisal report, I will take

no responsibility for it.

SUPERVISORY APPRAISER'S CERTIFICATION: If a supervisory appraiser signed the appraisal report, he or she certifies and agrees that:

I directly supervise the appraiser who prepared the appraisal report, have reviewed the appraisal report, agree with the statements and conclusions of the appraiser,

agree to be bound by the appraiser's certifications numbered 4 through 7 above, and am taking full responsibility for the appraisal and the appraisal report.

ADDRESS OF PROPERTY APPRAISED:

APPRAISER: SUPERVISORY APPRAISER (only if required):

Signature: Signature:

Name: Name:

Date Signed: Date Signed:

State Certification #: State Certification #:

or State License #: or State License #:

State: State:

Expiration Date of Certification or License: Expiration Date of Certification or License:

Did Did Not Inspect Property

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Documents

APPRAISAL OF REAL PROPERTY