Notre Dame Avenue-227, Jogues Street-226-236...APPRAISALS NORTH REALTY INC. 1 227 Notre Dame Avenue/226-236 Jogues Street Sudbury, ON TABLE OF CONTENTS INTRODUCTION Letter of Transmittal

APPRAISAL REPORT

227 Notre Dame Avenue 226-236 Jogues Street Sudbury, ON

Prepared for:

Prestigious Properties Four Inc. 912, 743 Railway Avenue Canmore, AB T1W 1P2

Prepared by:

Art Tworo, AACI, P. APP APPRAISALS NORTH REALTY INC. 66 Elm Street, Suite 301 Sudbury, ON P3C 1R8

APRIL 2013

Appraisals North Realty Inc.

Real Estate Appraisers & Consultants 66 Elm Street, Suite 301, Sudbury, ON P3C 1R8

PHONE: (705) 688-9300 FAX: (705) 688-8883 www.appraisalsnorth.ca

April 19, 2013 Prestigious Properties Four Inc. 912, 743 Railway Avenue Canmore, AB T1W 1P2 Attention: Mr. Mike Hammerlindl VP, Acquisitions Dear Sir:

Appraisal Report 227 Notre Dame Avenue/226-236 Jogues Street

Sudbury, ON Acting on your instructions, I have completed an appraisal on the above noted property. The purpose of this appraisal is to provide an estimate of current market value to assist the applicant in obtaining conventional mortgage financing.

Attached is my report giving a description of the property and other pertinent data gathered during our investigations, which have assisted in arriving at our conclusions. This report conforms to the Canadian Uniform Standards of Professional Appraisal Practice adopted by the Appraisal Institute of Canada. Based on the analysis of the data collected, it is my opinion that the current market value of the subject property, as of April 3, 2013, is:

FOUR MILLION NINE HUNDRED EIGHTY THOUSAND DOLLARS ($4,980,000) The indicated value assumes a cash to vendor sale and an exposure time of 1 to 3 months. Respectfully submitted, APPRAISALS NORTH REALTY INC.

A. W. Tworo, AACI, P.App.

FRONT VIEW - 227 NOTRE DAME AVENUE

SIDE / REAR VIEWS

FRONT VIEW – 236 JOGUES STREET

SIDE / REAR VIEWS

FRONT VIEW – 226 JOGUES STREET

SIDE / REAR VIEWS

GENERAL LOCATION MAP

NEIGHBOURHOOD/ZONING MAP

BUILDING SKETCH

APPRAISALS NORTH REALTY INC.

1 227 Notre Dame Avenue/226-236 Jogues Street Sudbury, ON

TABLE OF CONTENTS

INTRODUCTION

Letter of Transmittal Subject Property Photographs General Location Map Neighbourhood Map Building Sketch

TABLE OF CONTENTS ................................................................................................1 Executive Summary.......................................................................................................3

BASIS OF THE APPRAISAL ...........................................................................................4

Intended Use of the Report ...........................................................................................4 Purpose of the Appraisal ...............................................................................................4 Property Rights Appraised.............................................................................................4 Definition of Value .........................................................................................................5 Effective Date ................................................................................................................5 Scope of Work ...............................................................................................................6

Inspection..........................................................................................................................6 Type of Analysis................................................................................................................6 Data Research ..................................................................................................................6 Audits and Technical Investigations..................................................................................7 Verification of Third Party Information...............................................................................7

Assumptions and Limiting Conditions............................................................................8 FACTUAL INFORMATION.............................................................................................12

Identification of the Property........................................................................................12 Address ...........................................................................................................................12 Legal Description ............................................................................................................12

Area and City Data ......................................................................................................13 Neighbourhood Data ...................................................................................................16 Property Description ....................................................................................................18

Land ................................................................................................................................18 Buildings .........................................................................................................................19

Assessment and Taxes ...............................................................................................24 Land Use Controls.......................................................................................................24


227 Notre Dame Avenue/226-236 Jogues Street Sudbury, ON

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ANALYSIS AND CONCLUSIONS..................................................................................25 Highest and Best Use..................................................................................................25

Property As If Vacant ......................................................................................................25 Property As Improved .....................................................................................................26

Method of Valuation.....................................................................................................27 Estimate of Value – Income Approach ........................................................................29 Estimate of Value – Direct Comparison Approach ......................................................37 Exposure Time ............................................................................................................49 Reconciliation and Final Estimate of Value .................................................................50 Certification..................................................................................................................52

ADDENDA Additional Subject Photographs Zoning and Official Plan Excerpts Qualifications of Art Tworo, AACI, P. App



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Executive Summary

Type of Property: 93 unit residential apartment complex Address of Property: 227 Notre Dame Avenue/226-236 Jogues Street Sudbury, ON Legal Description: Part of Block A, Plan 47-S, PIN 02138-0004,

McKim Township, City and District of Sudbury. Purpose of the Appraisal: To estimate current market value. Intended Use of the Appraisal: Mortgage financing Property Rights Appraised: Fee simple interest. Inspection Date: April 3, 2013 Effective Date: April 3, 2013 Size of Site: 477.92 feet x irregular - 2.22 acres Size of Buildings: Each building has 17,901 square feet of above

grade finish Zoning: R3-1 – Medium Density Residential Official Plan Designation: Living Area 1 Highest and Best Use: Continuation of the present use as a 93 unit

apartment complex Estimate of Current Market Value Income Approach: $4,990,000 Direct Comparison Approach: $4,968,000 Final Estimate of Value: $4,980,000



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BASIS OF THE APPRAISAL

Intended Use of the Report This report has been prepared to provide objective information to assist in obtaining

conventional first mortgage financing on the subject property.

Purpose of the Appraisal The purpose of this appraisal is to estimate the current market value of the subject

property.

Property Rights Appraised The property rights appraised are those in fee simple interest of the surface rights only.

Fee simple is defined in Real Estate Appraising in Canada, published by the Appraisal

Institute of Canada as:

“An absolute fee; a fee without limitations to any particular class of heirs and restrictions, but subject to the limitations of eminent domain, escheat, police power, and taxation. An inheritable estate.”



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Definition of Value Market Value is defined in the Canadian Uniform Standards of Professional Appraisal

Practice, as adopted by the Appraisal Institute of Canada, as:

"The most probable price which a property should bring in a competitive and open market as of the specified date 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 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 best interests; 3. a reasonable time is allowed for exposure in the open market; 4. payment is made in terms of cash in Canadian dollars or in terms of financial

arrangements comparable thereto; 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.

Effective Date

The effective date of the appraisal is April 3, 2013, which corresponds with the date of

inspection. The appraisal report was prepared in the subsequent period.



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Scope of Work The scope of this appraisal covers the investigations and analysis required to prepare a

report which serves the intended use and which is in accordance with the Canadian

Uniform Standards of Professional Appraisal Practice, as adopted by the Appraisal

Institute of Canada. With respect to the subject property, the basic steps followed in

preparing the appraisal report are outlined as follows:

Inspection An inspection of the subject property was completed on April 3, 2013, facilitated by the

onsite manager, Debbie Hall. A cross section of units were inspected, together with

common areas, utility and laundry rooms, roofs, etc.

Type of Analysis This current appraisal complies with the Standards of the Appraisal Institute of Canada.

We are competent in this type of appraisal analysis and have appraised this type of

property previously. This appraisal involves an analysis of the financial characteristics of

the property as were available, as well as general market evidence that reflects both

economic and physical attributes.

Data Research We received our instructions from Mr. Mike Hammerlindl, VP Acquisitions at Prestigious

Properties Four Inc. Mr. Hammerlindl provided us with background information

regarding the subject property including rent rolls, operating expenses, etc. Reference



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was also made to historical information contained in the files of Appraisals North Realty

Inc. Additional information was obtained from the City of Greater Sudbury and MPAC.

Interviews and discussions were held with real estate brokers, appraisers and market

participants including vendors and purchasers in an effort to gather real estate data for

this appraisal or for other assignments. Information available through the Sudbury Real

Estate Board data bank, land title office and the files of Appraisals North Realty Inc.

were also reviewed.

Audits and Technical Investigations We did not complete technical investigations such as:

Detailed inspections or engineering review of the structure, roof or mechanical systems; An environmental review of the property; A site or building survey; Investigations into the bearing qualities of the soils; or Audits of financial records with regard to operating expenses.

Verification of Third Party Information

The analysis set out in this report relied on written and verbal information obtained from

a variety of sources we considered reliable. Unless otherwise stated herein, we did not

verify client-supplied information, which we believed to be correct. The mandate for the

appraisal did not require a report prepared to the standard appropriate for court

purposes or for arbitration, so we did not fully document or confirm by reference to

primary sources all information contained herein.



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Assumptions and Limiting Conditions 1. This report has been prepared at the request of Prestigious Properties Four Inc.

for the purpose of providing an estimate of the current market value of the property known as 227 Notre Dame Avenue/226-236 Jogues Street, Sudbury, Ontario. It is not reasonable for any person other than the person to whom this report is addressed to rely upon this appraisal without first obtaining written authorization from the applicant or the author of this report. This report has been prepared on the assumption that no other persons or parties will rely on it for any other purpose and all liability to all such persons or parties is denied.

2. This report has been prepared at the request of Prestigious Properties Four Inc.

and for the exclusive (and confidential) use of the recipient as named herein and for the specific purpose and function as stated herein. All copyright is reserved to the author and this report is considered confidential by the author and Prestigious Properties Four Inc. Possession of this report, or a copy thereof, does not carry with it the right to reproduction or publication in any manner, in whole or in part, nor may it be disclosed, quoted from or referred to in any manner, in whole or in part, without the prior written consent and approval of the author as to the purpose, form and content of any such disclosure, quotation or reference. Without limiting the generality of the foregoing, neither all nor any part of the contents of this report shall be disseminated or otherwise conveyed to the public in any manner whatsoever or through any media whatsoever or disclosed, quoted from or referred to in any report, financial statement, prospectus, or offering memorandum of the client, or in any documents filed with any governmental agency without the prior written consent and approval of the author as to the purpose, form and content of such dissemination, disclosure, quotation or reference.

3. The estimated market value of the real estate, which is the object of this appraisal,

pertains to the value of the fee simple interest in the real property. The property rights appraised herein exclude mineral rights, if any.

4. The concept of market value presumes reasonable exposure. The exposure period

is the estimated length of time the asset being valued would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of valuation. The overall concept of reasonable exposure encompasses not only adequate, sufficient and reasonable time but also adequate, sufficient and reasonable effort. The reasonable exposure period is a function not only of time and effort, but will depend on the type of asset being valued, the state of the market at the date of valuation and the level at which the asset is priced. (The estimated length of the exposure period needed to achieve the estimated market value is set forth in this report).



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5. The estimate of value contained in this report is founded upon a thorough and diligent examination and analysis of information gathered and obtained from numerous sources. Certain information has been accepted at face value; especially if there was no reason to doubt its accuracy. Other empirical data required interpretative analysis pursuant to the objective of this appraisal. Certain inquiries were outside the scope of this mandate. For these reasons, the analyses, opinions and conclusions contained in this report are subject to the following Contingent and Limiting conditions.

6. The property has been valued on the basis that title to the real estate herein

appraised is good and marketable. 7. The author of this report cannot accept responsibility for legal matters, questions of

survey, opinions of title, hidden or unapparent conditions of the property, toxic wastes or contaminated materials, soil or sub-soil conditions, environmental, engineering or other technical matters, which might render this property more or less valuable than as stated herein. If it came to our attention as the result of our investigation and analysis that certain problems may exist, a cautionary note has been entered in the body of the report.

8. The legal description of the property and the area of the site were obtained from

MPAC. Further, the plans and sketches contained in this report are included solely to aid the recipient in visualizing the location of the property, the configuration and boundaries of the site and the relative position of the improvements on the said lands.

9. The property has been valued on the basis that the real estate is free and clear of all

value influencing encumbrances, encroachments, restrictions or covenants except as may be noted in this report and that there are no pledges, charges, liens or special assessments outstanding against the property other than as stated and described herein.

10. The property has been valued on the basis that there are no outstanding liabilities

except as expressly noted herein, pursuant to any agreement with a municipal or other government authority, pursuant to any contract or agreement pertaining to the ownership and operation of the real estate or pursuant to any lease or agreement to lease, which may affect the stated value or saleability of the subject property or any portion thereof.

11. The property has been valued on the basis that the real estate complies in all

material respects with any restrictive covenants affecting the site and has been built and is occupied and being operated, in all material respects, in full compliance with all requirements of law, including all zoning, land use classification, building, planning, fire and health by-laws, rules, regulations, orders and codes of all federal, provincial, regional and municipal governmental authorities having jurisdiction with respect thereto. (It is recognized there may be work orders or other notices of violation of law outstanding with respect to the real estate and that there may be certain requirements of law preventing occupancy of the real estate as described in



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this report. However, such circumstances have not been accounted for in the appraisal process).

12. Investigations have been undertaken in respect of matters, which regulate the use of

land. However, no inquiries have been placed with the fire department, the building inspector, the health department or any other government regulatory agency, unless such investigations are expressly represented to have been made in this report. The subject property must comply with such regulations and, if it does not comply, its non-compliance may affect the market value of this property. To be certain of such compliance, further investigations may be necessary.

13. The property has been valued on the basis that there is no action, suit, proceeding or

investigation pending or threatened against the real estate or affecting the titular owners of the property, at law or in equity or before or by any federal, provincial or municipal department, commission, board, bureau, agency or instrumentality which may adversely influence the value of the real estate herein appraised.

14. This appraisal report considers the market value of the real estate only. Any

contribution of fixtures and equipment would be included only to the extent that such items contribute to the normal operation of the property, and are not separable as such. We are not experts in equipment valuation and any such equipment, when divorced from the ongoing operation would have a significantly lower value than its use in association with the subject property

15. The data and statistical information contained herein were gathered from reliable

sources and are believed to be correct. However, these data are not guaranteed for accuracy, even though an attempt has been made to verify the authenticity of this information.

16. The estimated market value of the property does not necessarily represent the value

of the underlying shares, if the asset is so held, as the value of the share could be affected by other considerations. Further, the estimated market value does not include consideration of any extraordinary financing, rental or income guarantees, special tax considerations or any other atypical benefits which may influence the ordinary market value of the property, unless the effects of such special conditions, and the extent of any special value that may arise therefrom, have been described and measured in this report.

17. Should title to the real estate presently be held (or changed to a holding) by a

partnership, in a joint venture, through a co-tenancy arrangement or by any other form of divisional ownership, the value of any fractional interest associated therewith may be more or less than the percentage of ownership appearing in the contractual agreement pertaining to the structure of such divisional ownership. For the purposes of our valuation, we have not made any adjustment for the value of a fractional interest.

18. In the event of syndication, the aggregate value of the limited partnership interests

may be greater than the value of the freehold or fee simple interest in the real estate, by reason of the possible contributory value of non-realty interests or benefits such as provision for tax shelter, potential for capital appreciation, special investment



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privileges, particular occupancy and income guarantees, special financing or extraordinary agreements for management services.

19. Unless otherwise noted, the estimated market value of the property referred to herein

is predicated upon the condition that it would be sold on a cash basis to the vendor subject to any contractual agreements and encumbrances as noted in this report as-is and where-is, without any contingent agreements or caveats. Other financial arrangements, good or cumbersome, may affect the price at which this property might sell in the open market.

20. Should the author of this report be required to give testimony or appear in court or at

any administrative proceeding relating to this appraisal, prior arrangements shall be made therefore, including provisions for additional compensation to permit adequate time for preparation and for any appearances, which may be required. However, neither this nor any other of these assumptions and limiting conditions is an attempt to limit the use that might be made of this report should it properly become evidence in a judicial proceeding. In such a case, it is acknowledged that it is the judicial body which will decide the use of this report which best serves the administration of justice.

21. Because market conditions, including economic, social and political factors, change

rapidly and, on occasion, without notice or warning, the estimate of market value expressed herein, as of the effective date of this appraisal, cannot necessarily be relied upon as of any other date without subsequent advice of the author of this report.

22. The value expressed herein is in Canadian dollars. 23. This report is only valid if it bears the original signature(s) of the author(s). 24. The appraiser is not qualified to comment on environmental issues that may affect

the market value of the property appraised, including but not limited to pollution or contamination of land, buildings, water, groundwater or air. Unless expressly stated, the property is assumed to be free and clear of pollutants and contaminants, including but not limited to moulds or mildews or the conditions that might give rise to either, and in compliance with all regulatory environmental requirements, government or otherwise, and free of any environmental condition, past, present or future, that might affect the market value of the property appraised. If the party relying on this report requires information about environmental issues then that party is cautioned to retain an expert qualified in such issues. We expressly deny any legal liability relating to the effect of environmental issues on the market value of the property appraised.

25. These Assumptions and Limiting Conditions shall be read with all changes in number

and gender as may be appropriate or required by the context or by the particulars of this mandate.



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FACTUAL INFORMATION

Identification of the Property

Address


Legal Description

Part of Block A, Plan 47-S, PIN 02138-0004, McKim Township, City and District of Sudbury

The subject property is held in the name of Prestigious Properties Four Inc. and

Prestigious Properties Four Limited Partnership, who purchased it on April 15, 2008, for

$3,950,000.

A title search has not been undertaken and it is assumed that there are no

encumbrances which might negatively affect either the utility or value of the subject

property.

Sales History The subject property was listed exclusively in the summer of 2012 with an asking price

of $4,700,000. According to the owner, there was an accepted offer to purchase for

$4,725,000, however the purchaser requested an extension for their financing condition,

which was not granted. The owners then decided to retain the property and remove it

from the market.



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Area and City Data For more than a century the City of Greater Sudbury has been renowned not only for its

traditional stature as one of the world’s largest sources of nickel ore, but its reputation as

a leader in applied mining research and proactive environmental practices.

Vale, Xstrata Nickel, Canadian Mining Industry Research Organization (CAMIRO), The

Canadian Construction and Mining division of Atlas Copco, MIRARCO, NORCAT, the

Sudbury Neutrino Observatory, and almost 300 other mining and supply services

companies have contributed to make Greater Sudbury the largest integrated mining

complex in the world.

There are many promising features in the local economy. Greater Sudbury has

experienced significant development activity in a number of sectors. The large-format

retail sector continues to grow, with many retailers locating to Greater Sudbury,

expanding the City's role as a regional shopping destination. Significant investments are

underway in the health care sector, including the recent completion of the one-site

Health Sciences North.

In May of 2012, Cliffs Resources announced plans to build a chromite smelter in the

Capreol area of the City of Greater Sudbury. This facility, which is expected to be on

stream in 2016, is expected to generate in the area of 400 to 500 permanent jobs.

The retail sector in Sudbury continues to prosper. The City of Greater Sudbury functions

as a regional shopping destination, servicing a catchment area extending across



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Northeastern Ontario. There are approximately 300,000 people living within a 100 mile

radius. The RioCan Centre on the Kingsway continues to expand, with a 200,000

square foot Lowe store opened recently. The New Sudbury Shopping Centre was

reconfigured to include a new Wal-Mart, Future Shop and a stand alone pad, for a

combined 165,000 square feet of new retail space. The ongoing redevelopment of the

Rainbow Centre in downtown Sudbury now includes Hart Department Stores of Quebec

and a large office/government component. A new 200,000 square foot WalMart was

recently opened off of Long Lake Road, in the south end of the City and this new big box

centre continues to expand. Several new hotels have opened in the past several years,

with more new rooms currently in the development stage.

The Greater Sudbury campus of the Northern School of Medicine is located on the

Laurentian University Campus. The 65,000 square foot facility enrolled its first class of

medical students in the fall of 2005 and the first group of doctors graduated in 2009.

The university recently announced the creation of its new school of architecture, which is

to be located on the former farmer’s market site on Elgin Street, in the downtown core.

Construction began in early 2013, with the school anticipated to create new jobs and

demand for services in the core area.

Over the years, Sudbury's hospital system has become a regional resource and referral

centre for more than 600,000 residents across Ontario. Already a hub for medical

services in Northeastern Ontario, Greater Sudbury is home to a number of institutions

that support health care. The health sector in Greater Sudbury employs over 8,500

people and Health Sciences North is a major employer, second only to Vale.



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The City of Greater Sudbury functions as the regional centre of learning and applied

research for Northeastern Ontario. Laurentian University, Cambrian College, and

Collège Boréal provide excellent educational services through a variety of full and part-

time programs. Total enrolment stands at 23,600 students, 14,000 full-time and 9,500

part-time.

Tourism has always been a major draw in the Sudbury region, with its abundance of

lakes and forests. Fishing, hunting, snowmobiling, etc. are all major draws to the area,

while Science North is a world-class science centre.

Average residential MLS prices in Greater Sudbury grew by 4.7% in 2012. CMHC

forecasts this figure to increase by 2.5% in 2013.

The multiple family residential market has enjoyed low vacancy rates over the past

several years and was 3.1% in 2012, virtually unchanged from 2011. Sudbury’s vacancy

rate is forecast to fall moderately in 2013, largely due to employment gains.

The industrial market in Sudbury continues to grow, with considerable sales activity and

new construction. There appears to have been some pent up demand over the past

decade, resulting in this activity. The Walden Industrial Park, the largest in the area, has

no serviced vacant land remaining. The Valley East Industrial Park, which had been

stagnant for many years, has seen significant development and the City of Greater

Sudbury is currently expanding the park. Vacancy rates for industrial space remain low,

while rental rates continue to increase steadily. The shortage of serviced industrial land

has spurred some development activity, with several industrial subdivisions either in the

planning stage or nearing the marketing stage.



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With regard to the commercial office sector, there is generally an oversupply; however

this pertains mostly to older, existing Class B office space. There are only a handful of

Class A office buildings in the city and they are generally fully occupied. The retail

sector continues to grow, with unprecedented development over the past few years,

particularly in the “big box” format.

Neighbourhood Data The subject property is located on the fringe of Sudbury’s downtown core, on the west

side of Notre Dame Avenue. The area contains a mix of property uses including multiple

family dwellings, some detached single family dwellings, local commercial uses,

institutional uses such schools, church, school board offices, etc. The multiple family

dwellings in the area range from small duplex/triplex type uses, elevatored apartment

buildings, cooperative housing projects, subsidized housing units comprising of

townhouses, etc. The long term trend in the area has been toward renovation of the

existing buildings with very little new construction in the area over the past several

decades.

The area is fully serviced with municipal sewer and water lines, paved roads, curbs,

sidewalks, street lighting, police and fire protection. Notre Dame Avenue at this location

is a paved multi-lane roadway with high traffic volume most hours of the day. Jogues

Street, which borders the south lot line of the subject property, is a paved two lane

roadway that provides access to the local school board offices along with a relatively

modern cooperative housing project.



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Notre Dame Avenue Facing South Notre Dame Avenue Facing North

Jogues Street Facing East



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Property Description Land

According to the Municipal Property Assessment Corporation (MPAC) website, the site

has an area of 96,703 square feet or 2.22 acres. Frontage is listed at 477.92 feet, which

appears to be the measurement along the Jogues Street side.

The site is level at Notre Dame Avenue then follows the incline of Jogues Street to be

somewhat below street level at the approximate mid point of the site and further west.

Access to the gravel parking areas is off Notre Dame Avenue only and parking appears

to be adequate. There are approximately 73 parking spaces available with some

assigned visitor parking, therefore not all units have an assigned parking area. Due to

the adequacy of amenities and the proximity to the central business district, the lack of

one parking space per unit does not appear to impact rentability of the property to a

great degree. Most amenities are within walking distance and a number of tenants

reportedly do not own a vehicle. There is a Sudbury Transit bus stop directly in front of

the property.

Parking Areas



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Buildings The subject property is improved with three individual 3 storey apartment buildings, each

containing 31 units, for a total of 93 units. According to MPAC, the buildings were

constructed in 1963. The chronological age of each structure is therefore 50 years, with

an effective age of 25 years. Remaining economic life is estimated to be approximately

25 to 30 years, assuming continued maintenance.

The complex contains 18 bachelor, 60-1 bedroom and 15-2 bedroom units. Each

building is 3 storey in layout and contains a part full basement. Ground floor area of

each building is 5,967 square feet, therefore each building has 17,901 square feet of

above grade finish. Ground floor units have secondary entries or balconies, while

second and third floor units all have balconies. The following is a brief description of the

buildings.

Foundations: Mix of poured concrete and concrete block Framing: Appears as masonry framing with wood for floors

and divisions. Exterior Walls: Brick for the most part, some vinyl siding, metal

siding at corners and other areas. Roof: Rubber membrane roof at 236 Jogues Street, roll

and tar roof over built up tar and gravel roofing for 227 Notre Dame and 226 Jogues Street.

Interior Walls and Ceilings: Mainly gyproc, some plaster over concrete block,

some ceramic tile. Ceilings are generally gyproc. Flooring: Hardwood, terrazzo, ceramic, sheet vinyl,

broadloom and laminate. Plumbing: Copper, cast iron and ABS lines, 2-79 US gallon

owned water heaters that are installed with each hot water boiler system. Each unit has a standard compliment of kitchen sinks and bathrooms. Each building has laundry facilities.



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Heating: Each building has a newer gas fired, hot water double boiler system. The boilers are reported state of the art with outside temperature monitoring, etc.

Electrical: The main electrical service is housed in 236

Jogues Street which is the middle building. There appears to be 3-400 amp services and 31 meters per building. From the middle building, underground feeds are supplied to 227 Notre Dame and 226 Jogues Street.

Miscellaneous: Each building has access to the roof through the

centre stairwell. The buildings are serviced by elevators between the first and third floors, with no access to the basements. Windows are a mixture of aluminum and wood sash units and newer vinyl clad units. Kitchens are generally painted wood cabinets and there is a 60 amp electrical service (fused) per unit.

Room Allocation: Each building is generally identical with respect to

layout and room allocation. There are four basic types of units throughout the buildings. The bachelors are approximately 300 square feet, the small one bedrooms are approximately 430 square feet, the large one bedroom is approximately 470 square feet, while the two bedroom units are estimated at approximately 680 square feet. As noted previously, the basements are partial only and there were unexcavated areas and crawlspace areas noted at inspection. Each basement has a two bedroom unit. Other rooms include electrical room, boiler room, laundry room with debit card operated washers and dryers, janitorial room and a number of storage rooms with lockers for the tenants. The main floor has a common entry foyer with security features and an intercom. There is a central hallway, two bachelor units and 8-1 bedrooms units. In addition there is a storage room. The second and third floors each contain two bachelor units, 6-1 bedroom units and 2-2 bedroom units. Each floor also has a storage room.



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Comments: The bachelor units are basically open concept bed-sitting rooms and kitchens with a

formal bathroom. Assuming the bachelor units account for 2 rooms each, the total

number of rooms per building, excluding bathroom and common rooms is estimated at

92, for a total 276 rooms for the entire complex. Overall condition of the structure is

considered good to average. Most of the exterior items are in good condition, however

several units on the third floor of 226 Jogues Street have experienced some water

damage due to a recurring issue with the roof. Unit 308 was viewed and requires

extensive repairs to the ceiling. According to the owners, the roof repairs estimated at

$25,000 to $30,000 will be completed as soon as weather permits.

There appears to be an ongoing program to renovate units as they become vacant.

Reportedly, there have been many tenant changes over the past year and as the tenants

vacate the units, they have been renovated.

Overall, the subject complex is in generally good to average condition. Many units have

at least undergone partial upgrading, although there are some which have not been

upgraded and are in average to fair condition only. The roofing at 226 Jogues Street will

require replacement, however the property manager indicates that there have been no

roof issues with the other two buildings. All three buildings have been retrofitted to fire

code. The subject is considered readily rentable and saleable overall.



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Typical Hallways

Laundry Rooms

Hot Water Boiler Systems



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Electrical

Roofing - 227 Notre Dame Ave. Roofing – 236 Jogues Street

Roofing – 236 Jogues Street



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Assessment and Taxes The current assessment on the subject property is $2,762,000. Total realty taxes for the

year 2012 were reported as $76,854.34. This translates to $826.39 per unit, which is

below average for multi family residential properties in the area.

Land Use Controls The subject property is zoned R3-1 – Medium Density Residential under Zoning By-law

2010-100Z for the City of Greater Sudbury. This designation permits a variety of uses,

including apartment complexes such as the subject.

The Official Plan for the City of Greater Sudbury designates this part of the subject

neighbourhood as Living Area I. This designation permits low, medium and high density

residential development. The subject appears to conform with both the zoning by-law

and the Official Plan.



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ANALYSIS AND CONCLUSIONS

Highest and Best Use Fundamental to the concept of value is the idea of “highest and best use”, which is

defined in the Appraisal of Real Estate, Canadian Edition, published by the Appraisal

Institute of Canada, as follows:

“The reasonably probable and legal use of vacant land or an improved

property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value.”

The highest and best use of both land as though vacant and property as improved must

meet four criteria. The highest and best use must be legally permissible, physically

possible, financially feasible and maximally productive. These criteria are often

considered sequentially. Both tests of legal permissibility and physical possibility must

be applied before the remaining tests of financial feasibility and maximal productivity.

Property As If Vacant If the subject site were vacant and unimproved, its highest and best use would likely be

development with a multiple family residential complex similar to the existing one. The

vacancy rate for apartments in Sudbury is low and the subject site is well located and

well suited to development of this nature.



26

Property As Improved The subject property was constructed in 1963 as a 93 unit multiple family complex

consisting of three buildings in overall good to average condition. These buildings have

been close to fully occupied over the past several years and this trend is not likely to

change. The subject has a remaining economic life estimated at between 25 to 30

years, therefore no change in use is anticipated. Based on the foregoing, it is thought

that the highest and best use of the subject property is continuation of the present use

as a 93 unit multiple family residential complex.



27

Method of Valuation The theory upon which the estimate of Market Value is developed considers three basic

and separate factors assumed to be part of the reasoning followed by a prudent

purchaser, namely:

A) The Replacement Cost of Improvements, B) The Income (or Potential Income) from the property, C) The recent sale price of, or current asking price of comparable properties. This results in three basic approaches to value, namely:

1) The Cost Approach, 2) The Income Approach, 3) The Direct Comparison Approach.

The Cost Approach considers the investment required to construct improvements

identical to those on the subject property, considering current market conditions and

construction costs. The figure derived is decreased by the estimated loss in value due

to the various forms of depreciation and increased by the estimated land value as if

vacant.

The Income Approach considers the projected income producing ability of the property,

reduced by the cost to produce this income and the applicable rates of return and

recapture.

The Direct Comparison Approach requires the comparison of the subject property with

similar properties, which have recently been sold or are currently listed for sale, and is

an application of the Principle of Substitution. This principle affirms that when a property

is replaceable, no prudent buyer would pay more for the subject than the cost of



28

acquiring an equally desirable substitute property providing that there is not undue delay

in acquiring the substitution.

The Cost Approach has tended to set the extreme upper limit of value in the marketplace

for a number of years, as supply and demand have not been in balance. The Appraisal

Institute of Canada recommends that, unless the property is new or relatively new, the

Cost Approach should not be employed, due to the difficulty in estimating land value,

replacement cost and the various forms of depreciation. Due to the subject’s age, this

approach was not considered.

We have been provided with income and expense statements for 2011 and 2012, along

with the most recent rent roll. Using this information, we were able to normalize

operating expenses for the subject property and arrive at a realistic net operating

income. The Income Approach is the method most often used by investors in their

decision making.

The Direct Comparison Approach will also be utilized, in that it reflects the actions of

buyers and sellers in the marketplace. The multiple family residential market is currently

quite active and plenty of comparable data was available.



29

Estimate of Value – Income Approach The Income Approach to Value is a method of estimating the present value of

anticipated income benefits generated by a property. The process of discounting future

income to a present worth is called capitalization, which is a mathematical process of

converting the net income into value. The present worth estimate of Market Value is the

amount that a prudent, typically informed purchaser would be willing to pay at a fixed

time for the right to receive the income stream produced by a particular property. The

usual steps involved in developing a value estimate by this approach are:

1) Estimate the total annual gross income of the property, less allowance for

future vacancies and bad debts. 2) Estimate the total annual operating expenses. 3) Calculate the annual net operating income (Gross Income less Expenses). 4) Select an appropriate capitalization rate. 5) Select the appropriate method of capitalization. 6) Using a suitable procedure, convert the anticipated annual net operating

income stream into an indication of the capital value of the property.

Occupancy Status On the date of inspection 4 units, or 4.3% of the complex were vacant. One unit was

rented effective April 1st, while two were being renovated and one bachelor was

renovated and available. There is a wide range of rentals for similar type units

throughout the complex and this generally has to do with the duration of tenancy.

Bachelor units range from $402.66 to $729.25 per month, one bedroom units from

$460.66 to $750.00 per month and two bedroom units from $483.53 to $950.04 per

month. All tenants pay their own hydro while heat and appliances are included.



30

A review of competing rental accommodations in the general area indicates that the

rental rates for the long term tenants are generally below economic levels, while the

rental rates for the newer tenants are generally at economic levels. A summary of the

current rent roll is set out as follows.



31



32



33

According to the current rent roll, potential gross annual income is $58,502 x 12 months

or $702,024.

Laundry income is based on the average net revenue for the past two years and totals

$3,607. The laundry equipment in the complex is owned and operated by a third party

company, with a percentage of revenues paid to the landlord. Parking, storage and

miscellaneous revenue was also based on two year averages.

Vacancy and Bad Debt At the present time the subject property has four vacant units due to ongoing

renovations. This represents approximately 4.3% vacancy.

The most recent CMHC statistics for Sudbury indicate an overall vacancy rate of around

4.3% for the downtown core and surrounding areas. The subject has a total of 18

bachelor units throughout the complex. Historically, this type of accommodation has a

more transient tenancy, therefore vacancy rates are typically higher than average.

Given the foregoing, an appropriate rate for vacancy and bad debt within the subject

property is thought to be 5.0%. This amount is deducted from potential gross annual

income to arrive at effective gross income.

Operating Expenses We have been provided with a summary of operating expenses for 2011 and 2012 by

the landlord. We have taken fixed expenses such as realty taxes at face value and

averaged variable expenses in order to eliminate peaks and valleys which occur from

year to year. Management is based on the industry standard of 5%, while reserves for

replacement of long life items was estimated at 2% of effective gross annual income.



34

On site management and other associated expenses were as provided by the landlord.

Reconstructed revenues and expenses are set out as follows:

Potential Gross Annual Income Rent $702,024 Laundry $ 3,607 Parking and Storage $ 4,095 Other Revenue $ 5,651 Total $715,377 Less Vacancy and Bad Debt Estimated @ 5% of Potential Gross Annual Income $ 35,769 Effective Gross Annual Income $679,608 Less Operating Expenses Realty Taxes $76,854 Insurance $13,357 Natural Gas $46,624 Hydro $15,524 Water $32,894 On-Site Managers $49,600 General and Admin $18,863 Marketing $10,688 Repairs & Maintenance $71,275 Management (5%) $33,980 Professional Fees $ 9,442 Reserves 2% $13,592 Total $392,693 $392,693 Annual Net Operating Income $286,915 Operating expenses total approximately $4,223 per unit or 57.7% of effective gross

annual income. This is fairly high for a building of this age, even where the owner is

responsible for heating. However, it is reasonable based on the above average amount

of management, repairs and maintenance associated with the 18 bachelor units within

the complex and the corresponding high turnover rate.



35

Choosing an Overall Capitalization Rate (OCR) The overall rate is derived from analysis of similar properties that have sold or are

available for sale. It is modified to take into account expectations of the subject

property’s future performance. Consideration is given to the quality and durability of the

subject’s income stream, as well as its physical condition and location.

Due to the location of the subject, current real estate dynamics and the limited supply of

comparable properties in the immediate locale, there is a lack of reasonably comparable

data which indicate OCRs. We have therefore utilized data from outside the subject

locale. This places a broader interpretation on the results concluded. The following

chart sets out the results of our investigation:

Chart of Overall Capitalization Rates

NO LOCATION SALE DATE

SALE PRICE

CAP RATE

UNITS

1. 363 Lasalle Boulevard 03/13 $1,000,000 5.72% 12

2. 334 Spruce Street 02/13 $483,000 6.64% 6

3. 187 Wembley Drive 02/13 $725,000 5.7% 8

4. 165 Mountain Street 01/13 $598,000 7.5% 8

5. 315 Annie Street 10/12 $640,000 6.5% 7

6. 415-417 Elm Street 09/12 $575,000 6.83% 8

7. 6 Morrison Avenue 05/12 $680,000 7.50% 9

8. 2182-2190 Madison Avenue 05/12 $1,250,000 5.48% 12

9. 1870 Paris Street 03/12 $1,230,000 6.69% 12

10. 101 Pine Street 12/11 $550,000 6.02% 11

Please note that certain assumptions have been made with regard to vacancy and

collection loss, management fees, etc., to estimate net incomes for some of the above

noted sales, in order to arrive at the individual indicated overall capitalization rate.



36

While the subject property has higher than average expenses, it is thought to have good

upside potential in terms of increased revenues. It is felt that an overall capitalization

rate applicable to the subject property at this time is in the range of 5.75%.

The estimated value by the Income Approach is calculated as follows:

Value = Net Operating Income Capitalization Rate

Value = $286,915 5.75%

Value = $4,989,826 rounded to $4,990,000

FOUR MILLION NINE HUNDRED NINETY THOUSAND DOLLARS ($4,990,000)



37

Estimate of Value – Direct Comparison Approach The Direct Comparison Approach is a method where a value indication is derived by

comparing the property being appraised to similar properties that have sold recently,

applying appropriate units of comparison. The Direct Comparison Approach may be

used to value improved properties or vacant land and is the most common and preferred

method of valuation when comparable sales data is available.

The basis of the Direct Comparison Approach is the Principle of Substitution, which

stipulates that the value of a property tends to be set by the price that would be paid to

acquire a substitute property of similar utility and desirability, within a reasonable amount

of time.

Generally speaking, multiple family properties are valued on the basis of a price per unit,

price per room and sometimes a gross income multiplier. The price per unit is simply the

sale price divided by the number of units, the price per room is the sale price divided by

the total number of rooms excluding common rooms and bathrooms, while the gross

income multiplier is the sale price divided by the potential gross annual income at the

time of sale. The data of most importance are presented on the following pages.



38

Comparable No. 1

Location: 363 Lasalle Boulevard, Sudbury Date Sold: March 15, 2013 Sale Price: $1,000,000 No. of Units: 12 Sale Price/Unit: $83,333 No. of Rooms: 47 Sale Price/Room: $21,277 Comments: A modern twelve unit apartment building with 11-2 bedroom units and 1-1 bedroom unit, for a total of 47 rooms. There are four units per floor, with the one bedroom unit located on the main floor. Layout of the all units are similar, having a kitchen, dining area, living room, two bedrooms and a four piece bathroom. Fixtures and finish are mostly original, with units varying in terms of overall condition from good to average. Built in 1991, it has a partial, unfinished basement and ample paved parking. Rents were generally below market levels at time of sale.



39

Comparable No. 2

Location: 397 Melvin Street, Sudbury Sale Date: February 23, 2013 Sale Price: $895,000 No. of Units: 12 Sale Price/Unit: $74,583 No. of Rooms: 39 Sale Price/Room: $22,948 Comments: A brick 2 storey 12 unit building originally constructed in 1935 with additions over the years. This sale has a 66’ x 120’ corner site with only adequate onsite parking. Building in good condition with mostly ceramic tile floors and several balconies, controlled entries and separate hydro meters. Electric baseboard heating, 2 washers and dryers, 24 tenant appliances. Combination of 2 bachelor apartments, 5-1 bedroom and 5-2 bedroom units. Well maintained property but average location only.



40

Comparable No. 3

Location: 1717 Lansing Avenue, Sudbury, ON Date Sold: August 16, 2012 Sale Price: $7,625,000 No. of Units: 100 Sale Price/Unit: $76,250 No. of Rooms: 600 Sale Price/Room: $12,708 Comments: A 30 year old 100 unit residential townhouse complex consisting of 15 detached buildings ranging from 4 to 8 units per building. 8.02 acre site, good location, each unit has a separate dining room with a walk out to the rear yard and several of the units have an additional 2 piece washroom ensuite of the master bedroom. Full basement for each unit, separate gas furnaces and water heaters. Units range from 1,000 to 1,110 square feet plus the basement areas.



41

Comparable No. 4

Location: 38-52 Pearl Street, Sudbury Sale Date: June 8, 2012 Sale Price: $1,080,000 No. of Units: 23 Sale Price/Unit: $46,957 No. of Rooms: 72 Sale Price/Room: $15,000 Comments: A 2 to 3 storey apartment building with 3- bachelor, 14-1 bedroom and 6-2 bedroom units. Located on the periphery of the downtown core, the building was originally constructed in 1913, but has reportedly undergone some recent upgrading. Unfinished basement area, limited parking available, all rents are inclusive of utilities. Located on the periphery of the downtown core with only fair access.



42

Comparable No. 5

Location: 1198-1200 Voyaguer Street, Sudbury Sale Date: May 16, 2012 Sale Price: $1,830,000 No. of Units: 20 Sale Price/Unit: $91,500 No. of Rooms: 80 Sale Price/Room: $22,875 Comments: 2-2 storey buildings with an overall effective age of 15 years, 13,663 square feet of above grade finish, each building has full finished basements. Total of 1-1 bedroom, 18-2 bedroom and 1-3 bedroom unit. One building has 9 units the other 11 units, located on a 96.6’ x irregular site, total land area of 22,695 square feet. Concrete, steel framing, built up tar and gravel roof systems, a number of balconies and appliances noted.



43

Comparable No. 6

Location: 355 King Street/458-466 Clinton Street, Sudbury

Sale Date: March 6, 2012 Sale Price: $460,000

No. of Units: 8

Sale Price/Unit: $57,500

No. of Rooms: 34

Sale Price/Room: $13,529

Comments: Two 2 storey buildings on a single site, both with finished basements. Forced air and hot water gas heat, average to good condition overall. Corner lot with minimal onsite parking. 1-1 bedroom, 4-2 bedroom and 3-3 bedroom units.



44

Comparable No. 7

Location: 1755 Regent Street, Sudbury 480 Linda Street, Sudbury 256-258 Pine Street, Sudbury 241 Lloyd Street, Sudbury Sale Date: May 9, 2011

Sale Price: $5,900,502

No. of Units: 148


No. of Rooms: 386


Comments: A portfolio of 4 apartment buildings sold by one vendor to one purchaser, something of a duress sale. Regent and Lloyd Street buildings are all bachelor units, Lloyd Street in poor condition. Remaining three buildings are well located and in good condition. 95 bachelor, 13-1 bedroom, 30-2 bedroom, 1-3 bedroom, plus 4 small main floor commercial units at 480 Linda Street.



45

Comparable No. 8

Location: 1147 Ramsey View Court, Sudbury

Sale Date: January 19, 2011

Sale Price: $9,020,000

No. of Units: 144


No. of Rooms: 515


Comments: A 48 year old 7 storey apartment building with two elevators, located in the south end of the city. Most tenants pay own hydro, central gas hot water heating system. Average to good condition overall, upgrades to heating system, roof, windows, elevators and exterior over the past 10 years or so. Paved parking for 147 vehicles. 55-1 bedroom, 87-2 bedroom and two main floor commercial units.



46

The preceding sales can be summarized in the following chart.

No. Location Sale Date

No. of Units

No. of Rooms Sale Price

Price Per Unit

Price Per Room

1 363 Lasalle Blvd. 03/13 12 47 $1,000,000 $83,333 $21,277 2 397 Melvin St. 02/13 12 39 $ 895,000 $74,583 $22,948 3 1717 Lansing Ave. 08/12 100 600 $7,625,000 $76,250 $12,708 4 38-52 Pearl St. 06/12 23 72 $1,080,000 $46,957 $15,000 5 1198-1200 Voyageur St. 05/12 20 80 $1,830,000 $91,500 $22,875 6 355 King / 458-466 Clinton 03/12 8 34 $ 460,000 $57,500 $13,529 7 Regent / Linda / Pine / Lloyd 05/11 148 386 $5,900,502 $39,868 $15,286 8 1147 Ramsey View Crt. 01/11 144 515 $9,020,000 $62,639 $17,514 Subject 93 276

The preceding sales occurred between January 2011 and March 2013 and are indicative

of market transactions throughout the City of Greater Sudbury. In determining what unit

of comparison is best, consideration must be given to the unit mix within the subject and

our comparative sales. The majority of the subject units are bachelors or small 1

bedrooms, while most comparables, with the exception of Sales 4 and 7, are typically 1

and 2 bedroom units. It is felt that using a per unit comparison will distort our valuation

and that the rate per room comparison is more realistic.

Comparable No. 1 is the very recent sale of a building located on a high traffic roadway,

but with far superior location in the New Sudbury area. Similar to the subject in terms of

age and overall condition, with a superior mix of mostly two bedroom units. Rents for

most units were below market levels, but good upside potential for increased revenues.

Considered superior to the subject overall at $21,277 per room.

Comparable No. 2 is a twelve unit building in good condition with similar location to the

subject. Slightly superior unit mix, considered superior to the subject overall at $22,948

per room.



47

Comparable No. 3 is a large multi family complex with 100 townhouse style units. Far

superior location, condition and unit mix. Superior to the subject overall on a per unit

basis but inferior on a per room basis at $12,708, due to economies of scale and the fact

that the dining area is counted as an extra room.

Comparable No. 4 is slightly inferior to the subject in terms of location. Similar overall

condition, but a far older building with limited parking and difficult access. Considered

inferior overall at $46,957 per unit and $15,000 per room.

Comparable No. 5 has superior location on a quiet street in New Sudbury. Superior in

terms of condition and unit mix, considered far superior to the subject overall at $22,875

per room.

Comparable No. 6 is an 8 unit complex, older and in overall average condition. Similar

to the subject in terms of location, inferior condition. Considered inferior overall at

$13,529 per room.

Comparable No. 7 is an older sale of a large portfolio of properties, varying a great deal

in terms of location, condition, units, etc. Two of the buildings contained a total of 95

bachelor units and the building on Lloyd Street was in poor condition. Considered

inferior to the subject at $39,868 per unit and $15,286 per room, requires upward

adjustment for time of sale.

Comparable No. 8 is an older sale of a large apartment complex with far superior

location in the south end of Sudbury. An older building in good to average condition.



48

The market for rental properties in Sudbury has increased significantly since that time.

Considered slightly inferior overall at $17,514 per room.

After adjustment, the indicated value range for the subject property has been narrowed

to between $17,514 and $21,277 per room, with the lower end of the range considered

realistic. The estimated current market value of the subject property is therefore

$18,000 per room x 276 rooms = $4,968,000. This translates to $53,419 per unit, which

appears reasonable in light of our market evidence.

FOUR MILLION NINE HUNDRED AND SIXTY EIGHT THOUSAND DOLLARS ($4,968,000)



49

Exposure Time

Exposure time has been defined in the Dictionary of Real Estate Appraisal (Third

Edition, Chicago, Appraisal Institute, 1993) as “The time a property remains on the

market”.

The estimated length of time the property interest being appraised would have been

offered on the market prior to a hypothetical consummation of a sale at market value on

the effective date of the appraisal; a retrospective estimate based upon an analysis of

past events assuming a competitive and open market. Exposure time is always

presumed to occur prior to the effective date of the appraisal. The overall concept of

reasonable exposure encompasses not only adequate, sufficient and reasonable time

but also adequate, sufficient, and reasonable effort.

Estimated exposure time is usually expressed as a range and is based on statistical

information where available, information gathered through sale verification and

interviews with market participants. The exposure period is a function of price, time and

use, not an isolated estimate of time alone. Exposure time is different for various types

of real estate and under various market conditions.

Typically properties of similar type and usage to the subject demonstrate a reasonable

exposure time from three to six months, however economic factors may dictate a shorter

or longer period of time in view of fluctuating interest rates and general market demand

at any given time.

Based on the property type, price range and an analysis of relevant sales leading up to

the effective date, Reasonable Exposure time for the subject is estimated to be one to

three months.



50

Reconciliation and Final Estimate of Value The purpose of this appraisal is to estimate the current market value of the property

known as 227 Notre Dame Avenue/226-236 Jogues Street, Sudbury, ON. The property

rights are those of the fee simple interest and the effective date of this valuation is April

3, 2013, being the date of inspection.

In estimating the market value of the subject property, two approaches were used and

provided the following value indications.

Income Approach: $4,990,000 Direct Comparison Approach: $4,968,000

The Income Approach is generally the most relevant method of valuation in the appraisal

of income producing properties since it reflects both investor rationale and current

available financing. The expenses provided to the appraiser appear reasonable in

comparison with similar properties throughout the City of Greater Sudbury. The income

as stated in the statements appears to have room for increases as units become

available and are renovated. The capitalization rate is market derived, therefore the

Income Approach appears to be a valid indicator of the current value of the subject

property.

The Direct Comparison Approach focuses on the physical characteristics of the asset as

opposed to its financial composition. It is popular amongst market participants in that it

is readily understood. Market data was plentiful and indicated a narrow value range. In

conclusion, equal reliance has been placed on the Direct Comparison Approach and the

Income Approach, which indicated a relatively similar value.



51

Based on this analysis, it is estimated that the current market value of the subject

property, as of April 3, 2013, is:

FOUR MILLION NINE HUNDRED AND EIGHTY THOUSAND DOLLARS ($4,980,000)



52

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

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

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

I have no present or prospective interest in the property that is the subject of this

report, and I have no personal interest or bias with respect to the parties involved.

My compensation is not contingent upon the reporting of a predetermined value

or direction in value that favours the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event.

I have made a personal inspection of the property that is the subject of this report on April 3, 2013.

This report has been prepared, in conformity with the Canadian Uniform

Standards of Professional Appraisal Practice, as adopted by the Appraisal Institute of Canada.

No one provided professional assistance to the person signing this report.

The Appraisal Institute of Canada has a mandatory Continuing Professional

Development Program for designated members; as of the date of this report, all signatories to this report have fulfilled the requirements of the program.

My final estimate of value as of April 3, 2013, is:

FOUR MILLION NINE HUNDRED AND EIGHTY THOUSAND DOLLARS ($4,980,000)

Art Tworo, AACI, P. App.

SUPPORTING DATA ADDITIONAL SUBJECT PHOTOGRAPHS ZONING EXCERPTS OFFICIAL PLAN EXCERPTS QUALIFICATIONS OF ART TWORO, AACI, P. APP.

227 Notre Dame Ave., Unit 310 – Kitchen

Living Room

Bathroom

Bedroom

226 Jogues St., Unit 107 – Kitchen

Living Room

Unit 304 – Kitchen

Bathroom

Unit 306 – Kitchen / Living Area

Bathroom

Unit 308 – Living Room

Ceiling Damage

Zoning Excerpts

Official Plan Excerpts

Qualifications of A. W. Tworo, AACI, P.App

Accredited Member - Appraisal Institute of Canada

Actively Involved in the Sudbury Chapter – Appraisal Institute of Canada

1976 - Present - Real Estate Appraiser

1976 - Present - Licensed Realtor and Broker

Member of the Sudbury Real Estate Board - Broker

Honours Graduate - 3 Year Real Estate Administration Program - Cambrian College, Sudbury

Attendance at Various Real Estate and Appraisal Seminars

Recertified Under Mandatory Recertification Program, Appraisal Institute of Canada

Appraisal Assignments Have Been Carried Out for the Following:

Chartered Banks and Trust Companies

Credit Unions and Caisse Populaires

Finance Companies

Law and Accounting Firms

Mortgage Brokerage Firms

Individuals and Corporations

Municipalities

Sudbury Boards of Education

Government of Ontario

Government of Canada

Documents

Notre Dame Avenue-227, Jogues Street-226-236...APPRAISALS NORTH REALTY INC. 1 227 Notre Dame Avenue/226-236 Jogues Street Sudbury, ON TABLE OF CONTENTS INTRODUCTION Letter of Transmittal