Summary Standard 0714...Jul 25, 2018 · 6. This appraisal assignment was not based upon a requested minimum valuation, a specific valuation, or the approval of a loan. 7. Our analyses,

APPRAISAL REPORT

422 Pawtucket Avenue, 134 Harrison Street/635 Main Street

Pawtucket, Providence County, Rhode Island 02860

Justin Decter

GREYSTONE & CO., INC.

152 West 57th Street, 60th Floor

New York, New York 10019

www.cbre.com/valuation

VALUATION & ADVISORY SERVICES

33 Arch Street, Level 28

Boston, MA 02210

T 617-912-7000

F 617-912-6901

www.cbre.com

July 25, 2018

Justin Decter

GREYSTONE & CO., INC.

152 West 57th Street, 60th Floor

New York, New York 10019

RE: Appraisal of

422 Pawtucket Avenue, 134 Harrison Street/635 Main Street

Pawtucket, Providence County, Rhode Island

Dear Mr. Decter:

At your request and authorization, CBRE New England has prepared an appraisal of the market

value of the referenced property. Our analysis is presented in the following Appraisal Report.

The subject consists of three residential and commercial buildings with addresses of 422

Pawtucket Avenue, 134 Harrison Street & 635 Main Street in Pawtucket, Rhode Island as well as a

parking garage located on Auburn Street. The property consists of three predominantly three-

story apartment buildings with 422 Pawtucket Avenue being mixed use residential with street level

retail. The improvements were constructed in 1920 & 1940 with renovations between 2015 and

2018 and are situated on a combined .57-acre site. The subject contains a combined 29

residential units and two street level retail units. It is noted that although 134 Harrison Street and

625 Main Street are two separate buildings with different addresses, they share a parcel and

property record card with the City of Pawtucket. The subject is currently 100% occupied and is

more fully described, both legally and physically, within the enclosed report.

Based on the analysis contained in the following report, the market value of the subject is

concluded as follows:

MARKET VALUE CONCLUSION

Appraisal Premise Interest Appraised Date of Value Value Conclusion

As Is Fee Simple Estate July 11, 2018 $2,600,000

Compiled by CBRE

The report, in its entirety, including all assumptions and limiting conditions, is an integral part of,

and inseparable from, this letter.

The following appraisal sets forth the most pertinent data gathered, the techniques employed,

and the reasoning leading to the opinion of value. The analyses, opinions and conclusions were

Justin Decter

July 25, 2018

Page 2

developed based on, and this report has been prepared in conformance with, the guidelines and

recommendations set forth in the Uniform Standards of Professional Appraisal Practice (USPAP),

the requirements of the Code of Professional Ethics and Standards of Professional Appraisal

Practice of the Appraisal Institute. It also conforms to Title XI Regulations and the Financial

Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) updated in 1994 and further

updated by the Interagency Appraisal and Evaluation Guidelines promulgated in 2010, as well

as Freddie Mac underwriting guidelines.

This report is for the use and benefit of, and may be relied upon by

a) the Seller/Servicer, Freddie Mac and any successors and assigns (“Lender”);

b) independent auditors, accountants, attorneys and other professionals acting on behalf of

Lender;

c) governmental agencies having regulatory authority over Lender;

d) designated persons pursuant to an order or legal process of any court or governmental

agency;

e) prospective purchasers of the Mortgage; and

f) with respect to any debt (or portion thereof) and/or securities secured, directly or

indirectly, by the Property which is the subject of this report, the following parties and their

respective successors and assigns:

• any placement agent or broker/dealer and any of their respective affiliates, agents

and advisors;

• any initial purchaser or subsequent holder of such debt and/or securities;

• any Servicer or other agent acting on behalf of the holders of such debt and/or

securities;

• any indenture trustee;

• any rating agency; and

• any institutional provider from time to time of any liquidity facility or credit support

for such financings

In addition, this report, or a reference to this report, may be included or quoted in any offering

circular, information circular, offering memorandum, registration statement, private placement

memorandum, prospectus or sales brochure (in either electronic or hard copy format) in

connection with a securitization or transaction involving such debt (or portion thereof) and/or

securities.

The intended use and user of our report are specifically identified in our report as agreed upon in

our contract for services and/or reliance language found in the report. No other use or user of

the report is permitted by any other party for any other purpose. Dissemination of this report by

any party to non-client, non-intended users does not extend reliance to any other party and CBRE

will not be responsible for unauthorized use of the report, its conclusions or contents used

partially or in its entirety.

Justin Decter

July 25, 2018

Page 3

It has been a pleasure to assist you in this assignment. If you have any questions concerning the

analysis, or if CBRE can be of further service, please contact us.

Respectfully submitted,

CBRE - VALUATION & ADVISORY SERVICES

Matthew Wood, MRICS, MAI Harris E. Collins, MAI, CRE, FRICS

First Vice President Executive Vice President/Partner

RI Cert. Gen. Appraiser Lic. #0060025 RI Cert. Gen. Appraiser Lic. #0A01402

Phone: 617-912-6956 Phone: 617-912-6912

Fax: 617-912-6901 Fax: 617-912-6901

Email: [email protected] Email: [email protected]

James T. Moore, MAI, MRICS

Executive Vice President/Partner

RI Cert. Gen. Appraiser Lic. #0020042

Phone: 617-912-6977

Fax: 617-912-6901

Email: [email protected]

mailto:[email protected]

Certification

i

Certification

We certify to the best of our knowledge and belief:

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

2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting

conditions and are our personal, impartial and unbiased professional analyses, opinions, and conclusions.

3. We have no present or prospective interest in or bias with respect to the property that is the subject of this report

and have no personal interest in or bias with respect to the parties involved with this assignment.

4. Our engagement in this assignment was not contingent upon developing or reporting predetermined results.

5. Our compensation for completing this assignment is not contingent upon the development or reporting of a

predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the

attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this

appraisal.

6. This appraisal assignment was not based upon a requested minimum valuation, a specific valuation, or the

approval of a loan.

7. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with

the Uniform Standards of Professional Appraisal Practice, as well as the requirements of the State of Rhode Island.

8. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in

conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal

Practice of the Appraisal Institute.

9. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly

authorized representatives.

10. As of the date of this report, Matthew Wood, James T. Moore, and Harris E. Collins have completed the continuing

education program for Designated Members of the Appraisal Institute.

11. As of the date of this report, Shelly E. D’Aleo has completed the Standards and Ethics Education Requirements for

Candidates/Practicing Affiliates of the Appraisal Institute.

12. James T. Moore has and Matthew Wood and Harris E. Collins have not made a personal inspection of the

property that is the subject of this report.

13. Shelly E. D’Aleo provided significant real property appraisal assistance to the persons signing this report.

14. Although employees of other CBRE, Inc. divisions may be contacted as a part of our routine market research

investigations, absolute client confidentiality and privacy were maintained at all times with regard to this

assignment without conflict of interest.

15. Matthew Wood, James T. Moore, and Harris E. Collins have not provided any services, as an appraiser or in any

other capacity, regarding the property that is the subject of this report within the three-year period immediately

preceding acceptance of this assignment.

Matthew Wood, MRICS, MAI Harris E. Collins, MAI, CRE, FRICS

First Vice President Executive Vice President/Partner

RI Cert. Gen. Appraiser Lic. #0060025 RI Cert. Gen. Appraiser Lic. #0A01402

James T. Moore, MAI, MRICS

Executive Vice President/Partner

RI Cert. Gen. Appraiser Lic. #0020042

Subject Photographs

ii

Subject Photographs

Aerial View

Subject Photographs

iii

Photo 1 – Typical View of the Subject Photo 2 - Typical View of the Subject

Photo 3 - Typical View of the Subject Photo 4 – Typical View of the Subject

Photo 5 – Internal View Photo 6 – Internal View

Subject Photographs

iv



Photo 11 – Internal View Photo 12 – Surrounding Land Use

Executive Summary

v

Executive Summary

Location

Highest and Best Use

As If Vacant

As Improved

Property Rights Appraised

Date of Report

Date of Inspection

Estimated Exposure Time

Estimated Marketing Time

Land Area 0.57 AC 24,680 SF

Improvements

Property Type Apartment

Number of Buildings

Number of Stories

Gross Building Area

Net Rentable Area

Number of Units 29

Average Unit Size 614 SF

Year Built 1920 & 1940 Renovated: 2015-2018

Condition

Buyer Profile

Financial Indicators

Current Occupancy 100.0%

Stabilized Occupancy 95.0%

Overall Capitalization Rate 7.25%

Pro Forma Operating Data Total Per Unit

Effective Gross Income $331,479 $11,430

Operating Expenses $136,716 $4,714

Expense Ratio 41.24%

Net Operating Income $194,763 $6,716

3

22,050 SF

July 25, 2018

4 Months

4 Months

17,800 SF

July 11, 2018

Leased Fee Interest

Mixed Use Resi & Street Retail

Mixed Use Resi & Street Retail

422 Pawtucket Avenue, 134 Harrison Street/635

Main Street, Pawtucket, Providence County, Rhode

Island 02860

(with some street level retail)

Investor-Local

Average

3

Executive Summary

vi

VALUATIONTotal Per Unit

Land Value $1,800,000 $62,069 Sales Comparison Approach $2,700,000 $93,103

Income Capitalization Approach $2,700,000 $93,103

Insurable Value $2,600,000 $89,655

CONCLUDED MARKET VALUE

Appraisal Premise Interest Appraised Value

As Is Leased Fee Interest $2,700,000

Compiled by CBRE

Date of Value

July 11, 2018

EXTRAORDINARY ASSUMPTIONS

An extraordinary assumption is defined as “an assumption directly related to a specific

assignment, as of the effective date of the assignment results, which if found to be false, could

alter the appraiser’s opinions or conclusions.” 1

• The appraisal assumes that 422 Pawtucket Avenue is correctly utilizing the residential mill rate

in Pawtucket even though it is a mixed-use building and will not be changed in the near

future.

The use of an extraordinary assumption may have affected the assignment result.

HYPOTHETICAL CONDITIONS

A hypothetical condition is defined as “a condition, directly related to a specific assignment,

which is contrary to what is known by the appraiser to exist on the effective date of the

assignment results, but is used for the purposes of analysis.” 2

• None noted

1 The Appraisal Foundation, USPAP, 2018-2019 ed., U-3.

2 The Appraisal Foundation, USPAP, 2018-2019 ed., U-3.

Table of Contents

vii

Table of Contents

Certification ....................................................................................................................... i

Subject Photographs ...........................................................................................................ii

Executive Summary ............................................................................................................ v

Table of Contents ............................................................................................................. vii

Introduction ...................................................................................................................... 1

Area Analysis .................................................................................................................... 5

Neighborhood Analysis ................................................................................................... 10

Site Analysis .................................................................................................................... 14

Improvements Analysis .................................................................................................... 17

Zoning ............................................................................................................................ 22

Tax Assessment Data ....................................................................................................... 23

Highest and Best Use ...................................................................................................... 32

Appraisal Methodology ................................................................................................... 33

Insurable Value ............................................................................................................... 34

Sales Comparison Approach ............................................................................................ 36

Income Capitalization Approach ...................................................................................... 40

Reconciliation of Value .................................................................................................... 53

Assumptions and Limiting Conditions ............................................................................... 54

ADDENDA

A Engagement Letter

B Improved Sale Data Sheets

C Rent Comparable Data Sheets

D Operating Data

E Qualifacations

Introduction

1

Introduction

OWNERSHIP AND PROPERTY HISTORY

Title to the property is currently vested in the name of Cougar Capital II LLC, who acquired title to

134 Harrison Street on October 2016, as improved for $725,000, as recorded in 4005/336 of

the Providence County Deed Records. Cougar Capital II, LLC acquitted title to 422 Pawtucket

Avenue/635 Main Street and the Auburn Street garages on December 2015, as improved for $0,

as recorded in 3904/331 of the Providence County Deed Records. A nominal sale price was

recorded and we assume this represents an internal transfer between related parties.

To the best of our knowledge, there has been no other ownership transfers of the property during

the previous three years and the property is not currently offered for sale.

INTENDED USE OF REPORT

This appraisal is to be used for potential mortgage financing, and no other use is permitted.

INTENDED USER OF REPORT

This appraisal is to be used by Greystone & Co., Inc. and no other user may rely on our report

unless as specifically indicated in the report.

Intended Users - the intended user is the person (or entity) who the appraiser intends

will use the results of the appraisal. The client may provide the appraiser with

information about other potential users of the appraisal, but the appraiser ultimately

determines who the appropriate users are given the appraisal problem to be solved.

Identifying the intended users is necessary so that the appraiser can report the

opinions and conclusions developed in the appraisal in a manner that is clear and

understandable to the intended users. Parties who receive or might receive a copy of

the appraisal are not necessarily intended users. The appraiser’s responsibility is to

the intended users identified in the report, not to all readers of the appraisal report. 3

This report is for the use and benefit of, and may be relied upon by

a) the Seller/Servicer, Freddie Mac and any successors and assigns (“Lender”);

b) independent auditors, accountants, attorneys and other professionals acting on behalf of

Lender;

c) governmental agencies having regulatory authority over Lender;

d) designated persons pursuant to an order or legal process of any court or governmental

agency;

e) prospective purchasers of the Mortgage; and

3 Appraisal Institute, The Appraisal of Real Estate, 14th ed. (Chicago: Appraisal Institute, 2013), 50.

Introduction

2

f) with respect to any debt (or portion thereof) and/or securities secured, directly or

indirectly, by the Property which is the subject of this report, the following parties and their

respective successors and assigns:

• any placement agent or broker/dealer and any of their respective affiliates, agents

and advisors;

• any initial purchaser or subsequent holder of such debt and/or securities;

• any Servicer or other agent acting on behalf of the holders of such debt and/or

securities;

• any indenture trustee;

• any rating agency; and

• any institutional provider from time to time of any liquidity facility or credit support

for such financings

In addition, this report, or a reference to this report, may be included or quoted in any offering

circular, information circular, offering memorandum, registration statement, private placement

memorandum, prospectus or sales brochure (in either electronic or hard copy format) in

connection with a securitization or transaction involving such debt (or portion thereof) and/or

securities.

PURPOSE OF THE APPRAISAL

The purpose of this appraisal is to estimate the market value of the subject property.

DEFINITION OF VALUE

The current economic definition of market value agreed upon by agencies that regulate federal

financial institutions in the U.S. (and used herein) is as follows:

The most probable price which a property should bring in a competitive and open market under

all conditions requisite to a fair sale, the buyer and seller each acting prudently and

knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this

definition is the consummation of a sale as of a specified date and the passing of title from seller

to buyer under conditions whereby:

1. buyer and seller are typically motivated;

2. both parties are well informed or well advised, and acting in what they consider their own

best interests;

3. a reasonable time is allowed for exposure in the open market;

4. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements

comparable thereto; and

5. the price represents the normal consideration for the property sold unaffected by special

or creative financing or sales concessions granted by anyone associated with the sale. 4

4 Interagency Appraisal and Evaluation Guidelines; December 10, 2010, Federal Register, Volume 75 Number 237,

Page 77472.

Introduction

3

INTEREST APPRAISED

The value estimated represents the leased fee interest and defined as follows:

Leased Fee Interest - A freehold (ownership interest) where the possessory interest has

been granted to another party by creation of a contractual landlord-tenant

relationship (i.e., a lease). 5

SCOPE OF WORK

This Appraisal Report is intended to comply with the reporting requirements set forth under

Standards Rule 2 of USPAP. The scope of the assignment relates to the extent and manner in

which research is conducted, data is gathered and analysis is applied. CBRE New England

completed the following steps for this assignment:

Extent to Which the Property is Identified

The property is identified through the following sources:

• postal address

• assessor’s records

Extent to Which the Property is Inspected

The units inspected are shown below:

Unit No. Plan Type Status

422-1 2 Bed / 1 Bath Occupied




635-3 4 Bed / 1 Bath Vacant/Now Occup.




Type and Extent of the Data Researched

CBRE reviewed the following:

• applicable tax data

• zoning requirements

• flood zone status

• demographics

• income and expense data

• comparable data

5 Dictionary of Real Estate Appraisal, 113.

Introduction

4

Type and Extent of Analysis Applied

CBRE New England analyzed the data gathered through the use of appropriate and accepted

appraisal methodology to arrive at a probable value indication via each applicable approach to

value. The steps required to complete each approach are discussed in the methodology section.

Data Resources Utilized in the Analysis

DATA SOURCES

Item: Source(s):

Site Data

Size Local Assessor's Office

Improved Data

Building Area Local Assessor's Office

No. Bldgs. Inspection

Parking Spaces Inspection

Year Built/Developed Local Assessor's Office

Economic Data

Deferred Maintenance: Information Provided

Building Costs: Marshall & Swift

Income Data: Rent Roll / Market Research

Expense Data: Information Provided / Market ResearchOther

Compiled by CBRE

Area Analysis

5

Area Analysis

Moody’s Economy.com provides the following excerpt from the Providence-Warwick, RI-MA metro

area economic summary as of January 2018.

PROVIDENCE-WARWICK, RI-MA - ECONOMIC INDICATORS

Indicators 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Gross Metro Product (C09$ Bil) 70.9 71.2 71.2 72.2 73.5 74.2 75.0 76.3 77.2 77.7 79.8 81.8

% Change -0.2 0.3 0.1 1.3 1.9 0.9 1.1 1.7 1.2 0.7 2.7 2.4

Total Employment (Ths) 677.2 683.1 692.6 705.3 713.2 722.2 729.9 736.7 741.2 741.7 745.4 751.4

% Change 0.7 0.9 1.4 1.8 1.1 1.3 1.1 0.9 0.6 0.1 0.5 0.8

Unemployment Rate (%) 10.4 9.8 9.0 7.5 6.0 5.1 4.5 4.3 4.2 4.7 4.8 4.7

Personal Income Growth (%) 3.6 4.2 0.6 3.5 4.6 1.9 2.5 2.8 3.2 3.3 3.4 3.3

Median Household Income ($ Ths) 53.2 54.3 55.0 56.6 58.9 61.9 63.6 64.7 66.1 67.7 69.3 70.9

Population (Ths) 1,601.6 1,604.2 1,605.8 1,610.5 1,613.7 1,616.9 1,619.9 1,622.2 1,623.9 1,625.1 1,626.2 1,628.3

% Change 0.0 0.2 0.1 0.3 0.2 0.2 0.2 0.1 0.1 0.1 0.1 0.1

Net Migration (Ths) -2.7 0.2 -0.2 3.6 2.0 1.7 1.5 0.6 0.0 -0.6 -0.9 0.2

Single-Family Permits (#) 963.0 1,144.0 1,465.0 1,441.0 1,482.0 1,662.0 1,921.4 2,598.7 2,843.7 2,734.8 3,190.1 3,355.1

Multifamily Permits (#) 215.0 217.0 509.0 334.0 336.0 902.0 313.5 536.6 587.1 390.0 547.0 631.2

Fhfa House Price (1995Q1=100) 195.7 191.8 192.1 197.8 206.1 216.2 230.1 239.2 240.8 245.8 253.4 262.5

Source: Moody's Economy.com

RECENT PERFORMANCE

Providence-Warwick is trailing the U.S. and its large New England peers. The approximately 2%

rise in the Moody's Analytics business cycle index over the past year compares with a closer to 3%

rise nationwide and in the Boston and Cambridge metro divisions. Yet, the Providence economy

is in better shape than it appears at first glance. The hard count of jobs that survey-based

Area Analysis

6

estimates are benchmarked to each year in March indicates a larger increase between mid-2016

and mid-2017 than currently reported. Also, the dip in payroll employment in last year's fourth

quarter has more to do with a sparse supply of labor than an unwillingness to hire. After a brief

pickup, Providence's labor force is contracting, but wages are rising more quickly, with hourly pay

up more than 4% over the past year, and house prices are appreciating at their fastest rate in

more than a decade.

PROSPECTS

Despite recent slippage, Providence will keep pace with the slow-growing Northeast in 2018.

Manufacturing and logistics are cruising; factory job growth matches its mid-2014 cycle high,

and given strength in demand and business investment in particular, industrial production will

enter uncharted territory this time next year. Providence will also benefit more than the state from

rising trade flows because it includes logistics-centric Bristol County MA. Hiring by Amazon at its

fulfillment center in Fall River MA is reflected in notably faster growth in transportation and

warehousing. Boston is among the 20 finalists for Amazon's second headquarters, and

Providence could benefit without the expense if it is chosen. A strong Boston will also draw more

job seekers willing to commute there for jobs in finance, tech and healthcare that, on average,

pay 80%, 50% and 40% more, respectively, than those in Providence.

COMPETITIVENESS

More commuter jobs will help only so much, and Providence will struggle to compete with its

northern neighbor in innovation and entrepreneurship. Providence wants the biomedical,

technology and engineering clusters that have transformed Boston, raising its profile. For the

economy's size, universities in Providence spend a lot on research and development, yet the

metro area scores poorly in patents and startups. It needs more talent in the right fields and

technologies worthy of commercialization to make headway.

Providence's three largest universities have opened or are nearing completion of new facilities for

engineering and research. Brown and University of Rhode Island are seeking more patents for

inventions, devices, and other intellectual property, and those schools and Johnson & Wales are

pursuing grants from the National Institutes of Health. These are key steps in the development of

patentable innovations that attract venture capital and spur new firms and high-wage jobs.

FEDERAL WHIPSAW

Because of its reliance on defense and education, Providence will benefit more than most from

the new federal budget, but its consumers lose under the new tax law. Property, sales, state and

local taxes are high, and the legislation scales back the deductions individuals can take. In

affluent pockets of Washington, Bristol and Newport counties, the tax plan will raise the cost of

homeownership and slow the ascent of house prices. As relative living costs increase,

consumption may suffer, and a pickup in out-migration, especially of retirees, is possible.

Area Analysis

7

CONCLUSION

Job growth in Providence-Warwick will downshift as its business cycle matures, but spillover

growth from Boston and favorable prospects for producers of goods and those that transport and

store them will help the metro area keep pace with the region in 2018. Longer term, high costs

and weak demographics will be hurdles, and not until the first half of the 2020s will it become

clear whether efforts to boost Providence's competitiveness have succeeded.

POPULATION

The following statistics are available through the U.S. Census Bureau. Projections are based

upon the 2010 census. Historical population statistics are summarized as follows:

AREA POPULATION STATISTICS

Area 2010 2018

Annual %

Change

2023

Annual %

Change

City of Pawtucket 71,148 71,648 1.4% 72,223 0.2%

Providence County 626,667 637,835 1.3% 647,488 0.3%

Rhode Island 1,052,567 1,067,528 0.7% 1,078,542 0.2%

Source: CBRE Fast Reports

As depicted in the preceding statistics, the City of Pawtucket has experienced an increase in

population over the past seven years, as have Providence County and the State of Rhode Island.

Over the next five years similar growth trends are predicted.

TRANSPORTATION

Business and industry in Rhode Island are served by well-coordinated intermodal transportation

facilities. The state's strategic location within the densely populated Northeast provides significant

regional market opportunities and relative access to Canadian and European markets.

Approximately sixty-five percent of New England's total population resides within seventy-five

miles of Providence, while most major metropolitan areas in the United States and Canada are

within a thousand miles.

Air Service: Located directly off Interstate 95 in Warwick, Rhode Island, T. F. Green Airport is a

twelve-minute drive from Providence. The airport recently underwent a large-scale

expansion/renovation at an approximate cost totaling $209 million and the brand new, state-of-

the-art facility is considered a quick and economical alternative to Massachusetts' Logan

International Airport. In addition to T. F. Green, five general aviation airports are also operated

by the Rhode Island Airport Corporation. Private and charter facilities are available.

Rail Service: Rhode Island is served by Amtrack and the MBTA Commuter Rail Services, with three

MBTA rail stops within Rhode Island referred to as Providence Station, T.F. Green and Wickford

Area Analysis

8

Junction. The following map published by the Massachusetts Bay Transportation Authority details

the commuter rail lines servicing greater Providence and greater Boston.

Highways: Interstate 95 runs north-south through Providence, while Interstate 195 connects

Providence to eastern Rhode Island and southeastern Massachusetts. Interstate 295 encircles

Providence while Route 146 provides a direct connection to Worcester, Massachusetts. A large-

scale highway project of note is referred to as The Iway and represents the Interstate 95

Relocation Project. This project was performed by the Rhode Island Department of Transportation

(RIDOT) and represents the largest project since the construction of the interstate highway system.

The project involved moving Interstate 95 to address a wide range of issues including safety,

replacing aging infrastructure, lessening traffic congestion and bolstering economic development.

The estimated cost of the project was approximately $446 million. Smithfield is easily accessible

via Interstate 295 with the subject property located just west of Exit 7 of Interstate 295.

Bus Service: Several bus lines provide interstate transportation, with Bonanza Bus Lines offering

hourly service to Boston and numerous daily trips to New York City. The Rhode Island Public

Transit Authority (RIPTA) provides efficient commuter service between major urban areas, with

downtown Providence functioning as the hub.

GOVERNMENT

The subject is located within the City of Pawtucket and the city has a comprehensive zoning plan

and building code which provides specific guidelines for development of all types of properties

and is considered to have had a positive effect on the development of the city.

ECONOMIC & EMPLOYMENT TRENDS

The Providence-Fall River-Warwick MSA employment base has increased by 0.90% over the past

year. The following table summarizes trends over the years:

Area Analysis

9

Providence-Fall River-Warwick MSA Employment: Annual Averages 2007-2017 (000's)

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (2007-2017)

Total Employment 582.8 569.4 541.9 540.9 544.4 550.1 558.0 567.7 575.8 583.5 588.9 0.1%

Manufacturing 65.0 60.9 52.3 50.5 50.6 50.1 50.4 51.2 51.6 50.9 50.9 -2.4%

Construction 27.6 25.2 21.0 19.5 19.3 19.7 20.2 20.8 21.4 23.1 23.4 -1.6%

Transportation/Utilites 13.0 13.0 12.2 12.4 12.9 13.1 13.2 13.6 14.0 14.3 16.9 2.7%

Wholesale/Retail Trade 89.6 86.8 82.4 81.8 82.3 83.1 82.8 83.9 85.2 85.3 84.2 -0.6%

F.I.R.E 49.6 48.0 45.2 44.5 44.6 44.9 44.9 44.9 45.4 45.4 44.6 -1.1%

Professional/Business/Other Services 264.1 262.7 257.7 261.1 264.5 269.3 276.4 282.8 287.8 293.7 296.4 1.2%

Government 73.7 72.7 71.0 70.9 70.1 69.7 70.0 70.4 70.2 70.7 71.0 -0.4%

Providence-Fall River-Warwick MSA Employment: Annual % Change 2007-2017 (000's)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

-2007 -2008 -2009 -2010 -2011 -2012 -2013 -2014 -2015 -2016

Total Employment -2.3% -4.8% -0.2% 0.6% 1.0% 1.4% 1.7% 1.4% 1.3% 0.9%

Manufacturing -6.3% -4.8% -3.4% 0.2% -1.0% 0.6% 1.6% 0.8% -1.4% 0.0%

Construction -8.7% -14.1% -7.1% -1.0% 2.1% 2.5% 3.0% 2.9% 7.9% 1.3%

Transportation/Utilites 0.0% -16.7% 1.6% 4.0% 1.6% 0.8% 3.0% 2.9% 2.1% 18.2%

Wholesale/Retail Trade -3.1% -6.2% -0.7% 0.6% 1.0% -0.4% 1.3% 1.5% 0.1% -1.3%

F.I.R.E -3.2% -5.1% -1.5% 0.2% 0.7% 0.0% 0.0% 1.1% 0.0% -1.8%

Professional/Business/Other Services -0.5% -5.8% 1.3% 1.3% 1.8% 2.6% 2.3% 1.8% 2.1% 0.9%

Government -1.4% -1.9% -0.1% -1.1% -0.6% 0.4% 0.6% -0.3% 0.7% 0.4%

Providence-Fall River-Warwick MSA Employment: Monthly Average 2017-2018 (000's)

As a % As a %

of Total of Total %

May-17 Employ. May-18 Employ. Change

Total Employment 593.3 100.0% 601.0 100.0% 1.3%

Manufacturing 50.7 8.5% 51.9 8.6% 2.4%

Construction 23.6 4.0% 24.1 4.0% 2.1%

Transportation/Utilites 16.5 2.8% 17.7 2.9% 7.3%

Wholesale/Retail Trade 84.6 14.3% 85.0 14.1% 0.5%

F.I.R.E 38.6 6.5% 39.2 6.5% 1.6%

Services 299.3 50.4% 303.4 50.5% 1.4%

Government 72.3 12.2% 72.6 12.1% 0.4%

Source: Rhode Island Department of Labor and Training, Labor Market Information

Compound

Annual

500.0

520.0

540.0

560.0

580.0

600.0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Year

Total Employment Trends

The latest statistics available show signs of growth, with an overall increase of 0.9% year-over-

year. Transportation/Utilities showed the greatest amount of growth, with a 7.3% increase over

last year.

CONCLUSION

The housing market continues to be a positive factor in the regional economy, with rising home

prices and rising sales bolstering the construction industry and related industries. Median housing

prices across the region are expected to continue to increase, with annual increases of 9 to 10%

in the past year, leveling off as interest rates rise to growth of 2 to 3%.

Overall, the New England region continues to see growth well into the next 12 months and

beyond though the interaction between the Boston Metro and other regional markets.

Neighborhood Analysis

10


LOCATION

The subject is located in the town of Pawtucket, Rhode Island roughly 37 miles south of Boston

Massachusetts and 157 miles northeast of New York, New York. Pawtucket has a total area of

9.0 square miles and is bordered by East Providence, Providence, North Providence, Lincoln,

Central Falls, Seekonk, Massachusetts and Attleboro, Massachusetts. More specifically, the

subject is west of Seekonk River and just north of Internstate-95, adjacent to downtown Pawtucket.

BOUNDARIES

The neighborhood boundaries are detailed as follows:

North: Interstate 95

South: Providence

East: Seekonk River

West: Interstate 95

LAND USE

Land uses in Pawtucket, Rhode Island consist of a mixture of commercial, industrial, and

residential developments as well as plenty of public open space and recreation areas. The city’s


11

planning emphasizes the revitalization of the nearby downtown and riverfront areas as well as

the limitation of commercial strip development by promoting neighborhood and regional

shopping districts. Furthermore, Pawtucket has very little land that is buildable resulting in growth

that is primarily redevelopment and infill while still protecting existing neighborhoods. The

immediate surrounding area consists of mostly residential zones and smaller retailers with

numerous retailers, varying in size, and a range of eateries within walking distance.

ACCESS

The town of Pawtucket is crossed by Interstate 95 and U.S. Route 1, both of which run from

Florida to Maine.

Amtrak's Northeast Corridor and the MBTA's Providence/Stoughton Line run through Pawtucket,

though there has been no stop for either in Pawtucket since 1959. There are currently plans for a

new station to be built on the western side of downtown. The Rhode Island Department of

Transportation (RIDOT) timeline predicts a groundbreaking in 2018 and an opening of the

station in 2020. Commuters can currently board MBTA trains at the South Attleboro stop, located

off Newport Avenue just over the state line. The closest running Amtrak station to Pawtucket is

Providence Station.

Public bus transportation is also available in the city. Rhode Island Public Transit Authority (RIPTA)

operates a hub in downtown Pawtucket with routes to various parts of the city and nearby towns.

Riders can access RIPTA buses to Providence via several routes. There are also popular routes

that provide service from the Downtown Pawtucket area to both the MBTA Station in South

Attleboro, Mass. and to T.F. Green Airport.

T.F. Green Airport is a public international airport located in Warwick, Rhode Island, just 13 miles

south of Pawtucket. The airport has over 20 gates, two asphalt runways, and serves over 30

destinations nonstop.

DEMOGRAPHICS

Surrounding neighborhood demographics are middle income with an average household income

for 2018 of $68,023 within a three-mile radius of the subject. Selected neighborhood

demographics in 1-, 3-, and 5-mile radii from the subject are shown in the following table:


12

SELECTED NEIGHBORHOOD DEMOGRAPHICS

422 Pawtucket Avenue

Pawtucket, RI

Population Imported Fields from Demos Workbook

2023 Total Population 23,020 189,597 378,356




Annual Growth 2018 - 2023 0.13% 0.21% 0.30%

Annual Growth 2010 - 2018 0.04% 0.13% 0.21%

Annual Growth 2000 - 2010 -0.36% -0.03% 0.08%

Households

2023 Total Households 9,521 74,386 144,212




Annual Growth 2018 - 2023 0.12% 0.22% 0.29%

Annual Growth 2010 - 2018 0.04% 0.11% 0.18%

Annual Growth 2000 - 2010 -0.35% -0.11% -0.02%

Income

2018 Median Household Income $42,856 $45,508 $45,100

2018 Average Household Income $65,147 $68,023 $66,119

2018 Per Capita Income $26,988 $27,407 $25,804

2018 Pop 25+ College Graduates 4,725 39,250 70,508

Age 25+ Percent College Graduates - 2018 30.5% 32.2% 28.8%

Source: Nielsen/Claritas

1 Mile 3 Miles 5 Miles

CONCLUSION

The neighborhood appears to be well located in relation to proximity to Greater Providence and

the major thoroughfares providing access to the various points of the region.

The neighborhood consists of a mixture of residential and commercial development. Pawtucket is

a close-in suburb of Providence and as indicated on the preceding chart is anticipated to

experience population and household growth over the next five years. As such, demand for the

subject and surrounding properties should remain average.

Improvements Analysis

13

PLAT MAPS

422 Pawtucket Avenue & Auburn Street Garage

134 Harrison Street & 635 Main Street


14

Site Analysis

The following chart summarizes the salient characteristics of the subject site.

SITE SUMMARY

Physical Description

Gross Site Area 0.57 Acres 24,680 Sq. Ft.

Net Site Area 0.57 Acres 24,680 Sq. Ft.

Primary Road Frontage Pawtucket Avenue

Secondary Road Frontage Harrison Street

Additional Road Frontage Main Street

Additional Road Frontage Auburn Street

Average Depth Irregular

Excess Land Area None n/a

Surplus Land Area None n/a

Shape

Topography

Zoning District

Flood Map Panel No. & Date 44007C0307J 2-Aug-15

Flood Zone Zone X

Adjacent Land Uses

Earthquake Zone

Comparative Analysis

Visibility

Functional Utility

Traffic Volume

Adequacy of Utilities

Landscaping

Drainage

Utilities Adequacy

Water Yes

Sewer Yes

Natural Gas Yes

Electricity Yes

Mass Transit Yes

Other Yes No Unknown

Detrimental Easements X

Encroachments X

Deed Restrictions X

Reciprocal Parking Rights X

Source: Various sources compiled by CBRE

Assumed adequate

Average

Provider

City of Pawtucket

Assumed adequate

RIPTA

City of Pawtucket

National Grid

Eversource

Rating

Average

Assumed adequate

Average

Irregular

Level

RT - Residential Two-Family (422 Pawtucket)

N/A

Commercial and residential uses

INGRESS/EGRESS

Ingress and egress is available to the site via the main road frontages.


15

ENVIRONMENTAL ISSUES

CBRE New England is not qualified to detect the existence of potentially hazardous material or

underground storage tanks which may be present on or near the site. The existence of

hazardous materials or underground storage tanks may affect the value of the property. For this

appraisal, CBRE New England has specifically assumed that the property is not affected by any

hazardous materials that may be present on or near the property.

CONCLUSION

The site is well located and afforded average access and visibility from the roadway frontage.

The size of the site is typical for the area and use, and there are no known detrimental uses in the

immediate vicinity. Overall, there are no known factors which are considered to prevent the site

from development to its highest and best use, as if vacant, or adverse to the existing use of the

site.


16

FLOOD PLAIN MAP


17


The following chart shows a summary of the improvements.

IMPROVEMENTS SUMMARY

Apartment

1920 &

1940 Renovated: 2015-2018

Garage Parkign Spaces: 5


UNIT MIX

Unit Mix/Type Comments No. Units

Percent of

Total

Unit Size

(SF) NRA (SF)

1BD/1BA 3 10.3% 500 1,500

2BD/1BA 23 79.3% 600 13,800

3BD/1BA 2 6.9% 800 1,600

4BD/1BA 1 3.4% 900 900

Residential Total/Average: 29 100.0% 614 17,800

Retail Units 2 100.0% 486 972

Commercial Total/Average 2 100.0% 486 972

Combined Total 31 606 18,772



(Multi-family Walk-up)Property Type

Net Rentable Area

614 SF

29

3

22,050 SF

18,772 SF

3

Number of Units

Average Unit Size

Number of Buildings

Number of Stories

Gross Building Area

Year Built

51.2 Units/Acre

Surface Parking Spaces:

1.31Parking Ratio (spaces/unit)

33

Development Density

YEAR BUILT

The subject was built in 1920 & 1940 and was most recently renovated in throughout 2015-

2018. The owner has provided us with the following list of renovations completed.


18

CONSTRUCTION CLASS

Building construction class is as follows:

D – Wood frame, floor and structure; considered combustible

The construction components are assumed to be in working condition and adequate for the

building.

The overall quality of the facility is considered to be average for the neighborhood and age.

However, CBRE | New England is not qualified to determine structural integrity and it is

recommended that the client/reader retain the services of a qualified, independent engineer or

contractor to determine the structural integrity of the improvements prior to making a business

decision.

BUILDING CONSTRUCTION

Framing: Wood framed

Roof: Flat rubber

Exterior: Vinyl

Windows: Double glazed, double hung vinyl-frame thermal windows

Exterior Doors: Painted solid core metal doors with view panes

Floor-to-Ceiling Height: +/- 8’

MECHANICAL SYSTEMS

Heating & Cooling: Natural Gas

Domestic Hot Water: Hot Water is provided via individual 40- gallon gas-fired

water heaters in each unit.

Fuel Source: Gas & electric

Utility Metering: All units are individually sub-metered for electricity and

cooking gas, but landlord pays heat and hot water

Elevator Service: None

Electrical Service to Each Apartment: 100 amps per unit (separately metered for each apartment)

Life Safety Service: Smoke and CO detectors

Security: Controlled entry

INTERIOR DETAIL

Common Areas Finishes

Walls: Painted sheetrock

Ceilings: Painted sheetrock

Lighting: Ceiling mounted globe lighting

Front Door: Painted solid metal core

Kitchen

Flooring: Tile and hardwood

Countertops: Solid surface

Cabinets: Wood cabinets

Sink: Single-bowl stainless steel

Ceiling: Painted sheetrock


19

Lighting: Ceiling mounted lighting along with hanging pendant

lighting above eating areas

Refrigerator: White frost-free

Stove: White or stainless electric range

Bathrooms

Flooring: Tile



Lighting: Wall-mounted sconce lighting fixture

Vanity: Full white wood vanity with one-piece cultured stone sink

and wall-mounted mirror

Tub/Shower: Full tub/shower with fiberglass surround

Living Room/Dining Room/Bedrooms

Flooring: Hardwood



Closets: Ample

OTHER

Washer & Dryer: Common coin operated laundry

SITE AMENITIES

Parking and Drives

The project features adequate surface parking, as well as 5 garage parking spaces. All parking

is included in rent.

Landscaping

Landscaping is considered to be in average condition and well maintained.

FUNCTIONAL UTILITY

All of the floor plans are considered to feature functional layouts and the layout of the overall

project is considered functional in utility. Therefore, the unit mix is also functional and no

conversion is warranted to the existing improvements.

ADA COMPLIANCE

All common areas of the property do not have handicap accessibility. The client/reader’s

attention is directed to the specific limiting conditions regarding ADA compliance.


20

FURNITURE, FIXTURES AND EQUIPMENT

The apartment units are rented on an unfurnished basis. However, miscellaneous maintenance

tools, leasing office furniture, etc. are examples of personal property associated with and typically

included in the sale of multifamily apartment complexes.

ENVIRONMENTAL ISSUES

CBRE | New England is not qualified to detect the existence of any potentially hazardous

materials such as lead paint, asbestos, urea formaldehyde foam insulation, or other potentially

hazardous construction materials on or in the improvements. The existence of such substances

may affect the value of the property. For the purpose of this assignment, we have specifically

assumed there are no hazardous materials that would cause a loss in value to the subject.

DEFERRED MAINTENANCE

During our inspection of the property, we made note of the condition of the property and site

characteristics and indicated no items of major deferred maintenance as the subject property is

considered to be in average overall condition.

Furthermore, a Property Conditions Assessment (PCA) was performed on the subject site by GRS

Group and a copy of this report dated July 23, 2018 was provided to the appraisers.

The PCA identified $25,172 worth of critical and priority repairs that include the following:

ANALYSIS OF DEFERRED MAINTENANCE

Life Safety $2,800

Paving $8,280

Exterior facades $9,000

Remove unused heating oil $1,000

Soffits/Flashing $2,500

Chimney & Foundation $1,200

Fencing/Wheelstops/Drywall/Roof

survey/Electrical Wiring $392

Subtotal $25,172

Plus: Profit @ 15% $3,776

Rounded Total : $30,000

Source: Information Provided

The total deferred maintenance estimate will be deducted from each approach in order to

conclude the “as is” value for the subject.

ECONOMIC AGE AND LIFE

CBRE | New England’s estimate of the subject improvements effective age and remaining

economic life is depicted in the following chart:


21

ECONOMIC AGE AND LIFE

Actual Age 98 and 78

Years

Effective Age 10 Years

MVS Expected Life 45 Years

Remaining Economic Life 35 Years

Accrued Physical Incurable Depreciation 22.2%

Compiled by CBRE

The remaining economic life is based upon our on-site observations and a comparative analysis

of typical life expectancies as published by Marshall and Swift, LLC, in the Marshall Valuation

Service cost guide. While CBRE | New England did not observe anything to suggest a different

economic life, a capital improvement program could extend the life expectancy.

CONCLUSION

The improvements are in average overall condition. Overall, there are no known factors that

adversely impact the marketability of the improvements.

Zoning

22

Zoning

The following chart summarizes the subject’s zoning requirements.

ZONING SUMMARY ZONING SUMMARY

Current Zoning RT - Residential Two-Family (422 Pawtucket)

Legally Conforming No - See Comments

Uses Permitted Primarily single- and two-family dwelling

units & public receation serving the needs of

the community

Zoning Change Not likely

Category Zoning Requirement

Minimum Lot Size 7,500 Sq. Ft.

Minimum Lot Width 75 Feet

Maximum Height 30 Feet

Minimum Setbacks

Front Yard 15 Feet

Side Yard 8 Feet

Rear Yard 25 Feet

Maximum Bldg. Coverage 30%

Maximum FAR/Density None noted

Parking Requirements 2 spaces per unit

Subject's Actual Parking 1.31 spaces per unit

Source: Planning & Zoning Dept.

ZONING SUMMARY

Current Zoning RM - Residential Multifamily (134 Harrison &

635 Main)

Legally Conforming No - See Comments

Uses Permitted Primarily multi-family dwelling units, local retail

& public receation serving the needs of the

community

Zoning Change Not likely

Category Zoning Requirement

Minimum Lot Size 3,000 Square Feet per dwelling unit

Minimum Lot Width 100 Feet

Maximum Height 30 Feet

Minimum Setbacks

Front Yard 10 Feet

Street Side Yard 10 Feet

Rear Yard 25 Feet

Maximum Bldg. Coverage 30%

Maximum FAR/Density None noted

Parking Requirements 2 spaces per unit

Subject's Actual Parking 1.31 spaces per unit

Source: Planning & Zoning Dept.

The improvements represent a pre-existing legally non-conforming use as a result of minimum lot

size, minimum lot width, minimum setback, and parking space requirements and, if damaged,

may be restored without special permit application. Additional information may be obtained from

the appropriate governmental authority. For purposes of this appraisal, CBRE has assumed the

information obtained is correct and a legal zoning opinion is also recommended as the

appraisers are not legal experts in this regard.

Tax Assessment Data

23

Tax Assessment Data

The subject properties at 134 Harrison and 635 Main Street are categorized as commercial

properties and utilize Pawtucket’s commercial mill rate of 33.21 per $1,000 of assessed value

due to having more than five residential units. The property at 422 Pawtucket Avenue and the

residential garage on Auburn Street is categorized as residential and utilizes the tax rate of 20.13

per $1,000 of assessed value. It is noted that 422 Pawtucket avenue is a mixed-use building and

we assume there is a reason why the assessor’s office does not utilize the commercial mill rate

and that this will continue. In order to come up with the subject’s combined estimated tax

expense, we have undertaken the following bifurcated analysis.

Ad Valorem Tax Worksheet - Current

Tax Rate Per Component

Component Assessed Value $1,000 Taxes

422 Pawtucket $558,200 20.130000 $11,236.57

134 Harrison/635 Main $759,700 33.210000 $25,229.64

Auburn Street $16,200 20.130000 $326.11

Total $1,334,100 27.578374 $36,792.31

The bifurcated analysis shows a mill rate of 27.58 per $1,000 of assessed value and has been

utilized in the following analysis.

The following summarizes the local assessor’s estimate of the subject’s market value, assessed

value, and taxes, and does not include any furniture, fixtures or equipment. The CBRE estimated

tax obligation is also shown.

AD VALOREM TAX INFORMATION

Assessor's Market Value Parcel Description Current Pro Forma

64/0848 422 Pawtucket $558,200 $586,110

52/0199 134 Harrison/635 Main $759,700 $797,685

64/0551 Auburn Street $16,200 $17,010

Subtotal $1,334,100 $1,400,805

Assessed Value @ 100% 100%

$1,334,100 $1,400,805

General Tax Rate (per $1,000 A.V.) 27.578374 27.578374

Total Taxes $36,792 $38,632

Source: Assessor's Office

Tax Assessment Data

24

CONCLUSION

In our pro-forma estimate we have concluded a 5.0% increase to the current assessed value to

take into consideration any increase that may occur in the short term. For the purposes of this

analysis, CBRE New England assumes that all taxes are current.

Market Analysis

25

Market Analysis

The market analysis forms a basis for assessing market area boundaries, supply and demand

factors, and indications of financial feasibility. Primary data sources utilized for this analysis

include Reis and CBRE primary research.

The subject is located in the Providence, Rhode Island submarket as defined by Reis.

Market Analysis

26

Market Analysis – Multi Family

The following discussion illustrates some general observations in the surrounding apartment

market.

Market Analysis

27

Market Analysis

28

Market Analysis

29

According to the research, the Greater Providence market contains some 100,435 apartments

with an average occupancy rate of 95.80%.

The greater Providence market reports an average of 416 completions per annum over the

preceding five years. Given the amount of underlying demand and high-occupancy levels;

occupancy and rental levels are forecast to maintain stabilized levels for the foreseeable future.

COMPETITIVE PROPERTIES

Comparable properties were surveyed in order to identify the current occupancy within the

competitive market. The comparable data is summarized in the following table:

Market Analysis

30

SUMMARY OF COMPARABLE APARTMENT RENTALS

Comp.

No. Name Location Occupancy

1 Parkview Exchange 180 Parkview Drive,

Pawtucket, RI

99%

2 Slater Cotton Mill 75 South Union Street,

Pawtucket, RI

94%

3 Blackstone Valley 325-331 Prospect Street,

Pawtucket, RI

100%

4 Lofts 125 125 Goff Avenue,

Pawtucket, RI

98%

5 The Continental 1250 South Broadway,

East Providence, RI

97%

Subject 422 Pawtucket Avenue, 134

Harrison Street/635 Main

Street,

Pawtucket, Rhode Island

100%

Compiled by CBRE

The majority of comparable properties surveyed reported occupancy rates of 94% or better, and

all are currently in average to good condition. The properties included in the competitive set

represent multi-family properties with similar attributes to the subject from the surrounding area.

SUBJECT ANALYSIS

Occupancy

Based on the foregoing analysis, CBRE New England’s conclusion of stabilized occupancy for the

subject is illustrated in the following table. This estimate considers both the physical and

economic factors of the market.

OCCUPANCY CONCLUSIONS

CBRE - Providence Q1, 2018 95.80%

Rent Comparables - Average 97.60%

Subject's Current Occupancy 100.00%

Subject's Stabilized Occupancy 95.00%

Compiled by CBRE

In our appraisal calculations we have concluded a stabilized occupancy for the subject of 95.00%

allowing for lease turnover and re-letting.

CONCLUSION

The area apartment market and the local submarket are exhibiting strong occupancy levels and

upward trending rental rates, while maintaining favorable absorption in recent years.

Market Analysis

31

Considering the recent trends in absorption and the prospects for new construction, the local

market area should maintain a stabilized occupancy position.

With respect to the subject in particular, we believe the property is reasonably well located for an

apartment project. It is in reasonable proximity to both employment centers and major

roadways, and the surrounding apartment developments are experiencing average to above

average levels of demand. Based upon our analysis, the subject should continue to enjoy good

market acceptance.

Highest & Best Use

32

Highest and Best Use

In appraisal practice, the concept of highest and best use represents the premise upon which

value is based. The four criteria the highest and best use must meet are:

• legally permissible;

• physically possible;

• financially feasible; and

• maximally productive.

The highest and best use analysis of the subject is discussed below.

AS VACANT

The property is zoned for apartment use and is of sufficient size to accommodate various types of

development. The immediate area includes various apartment land uses. Considering the

surrounding land uses, location attributes, legal restrictions and other factors, it is our opinion

that a / an apartment oriented use would be reasonable and appropriate. Therefore, it is our

opinion that the highest and best use would be for apartment-related use, time and

circumstances warranting.

AS IMPROVED

As improved, the subject involves an apartment-oriented facility. The current use is legally non-

conforming. The improvements continue to contribute value to the property and based on our

analysis, the existing use is financially feasible. Therefore, it is our opinion that the highest and

best use of the subject, as improved, is for continued apartment related use.

Appraisal Methodology

33

Appraisal Methodology

In appraisal practice, an approach to value is included or omitted based on its applicability to the

property type being valued and the quality and quantity of information available.

COST APPROACH

The cost approach is based on the proposition that the informed purchaser would pay no more

for the subject than the cost to produce a substitute property with equivalent utility. This approach

is particularly applicable when the property being appraised involves relatively new improvements

that represent the highest and best use of the land, or when it is improved with relatively unique

or specialized improvements for which there exist few sales or leases of comparable properties.

SALES COMPARISON APPROACH

The sales comparison approach utilizes sales of comparable properties, adjusted for differences,

to indicate a value for the subject. Valuation is typically accomplished using physical units of

comparison such as price per square foot, price per unit, price per floor, etc., or economic units

of comparison such as gross rent multiplier. Adjustments are applied to the physical units of

comparison derived from the comparable sale. The unit of comparison chosen for the subject is

then used to yield a total value. Economic units of comparison are not adjusted, but rather

analyzed as to relevant differences, with the final estimate derived based on the general

comparisons.

INCOME CAPITALIZATION APPROACH

The income capitalization approach reflects the subject’s income-producing capabilities. This

approach is based on the assumption that value is created by the expectation of benefits to be

derived in the future. Specifically estimated is the amount an investor would be willing to pay to

receive an income stream plus reversion value from a property over a period of time. The two

common valuation techniques associated with the income capitalization approach are direct

capitalization and the discounted cash flow (DCF) analysis.

METHODOLOGY APPLICABLE TO THE SUBJECT

In valuing the subject, only the sales comparison and income capitalization approaches are

applicable and have been used. The cost approach is not applicable in the estimation of market

value due to the lack of reliance of this method by market participants and the difficulty in

measuring the amount of depreciation present in the asset given the age. However, the

replacement cost was estimated within the analysis of insurable value.

Insurable Value

34

Insurable Value

Insurable value is defined as follows:

1. the value of an asset or asset group that is covered by an insurance policy; can be

estimated by deducting costs of noninsurable items (e.g., land value) from market

value.

2. value used by insurance companies as the basis for insurance. Often considered to

be replacement or reproduction cost plus allowances for debris removal or demolition

less deterioration and noninsurable items. Sometimes cash value or market value, but

often entirely a cost concept. 6

3. a type of value for insurance purposes. 7

CBRE New England has followed traditional appraisal standards to develop a reasonable

calculation based upon industry practices and industry-accepted publications such as the

Marshall Valuation Service. The methodology employed is a derivation of the cost approach and

is not reliable for insurable value estimates. Actual construction costs and related estimates can

vary greatly from this estimate.

The insurable value estimate presented herein is intended to reflect the value of the destructible

portions of the subject, based on the replacement of physical items that are subject to loss from

hazards (excluding indestructible items such as basement excavation, foundation, site work, land

value and indirect costs). In the case of the subject, this estimate is based upon the base building

costs (direct costs) as obtained via the Marshall Valuation Service cost guide, with appropriate

deductions.

This analysis should not be relied upon to determine proper insurance coverage as only

consultants considered experts in cost estimation and insurance underwriting are qualified to

provide an insurable value. It is provided to aid the client/reader/user as part of their overall

decision making process and no representations or warranties are made by CBRE New England

regarding the accuracy of this estimate. It is strongly recommended that other sources be utilized

to develop any estimate of insurable value.

6 Marshall & Swift/Boeckh, LLC, Marshall Valuation Service, (Los Angeles: Marshall & Swift/Boeckh, LLC, 2010), Sec 3,

p 2.

7 Appraisal Institute, The Dictionary of Real Estate Appraisal, 5

th ed. (Chicago: Appraisal Institute, 2010), 102.

Insurable Value

35

INSURABLE VALUE

Primary Building Type: Height per Story: 10'

Effective Age: Number of Buildings: 3

Condition: Gross Building Area: 22,050 SF

Exterior Wall: Net Rentable Area: 17,800 SF

Number of Stories: Average Floor Area: 7,350 SF

MVS Sec/Page 0 0 0 0

Apartments -

11/18

Quality/Bldg. Class 0 0 0 0 Average/D

Component Sq. Ft. 0 SF 0 SF 0 SF 0 SF 22,050 SF

Base Square Foot Cost $0.00 $0.00 $0.00 $0.00 $86.50

Square Foot Refinements

Appliance Package $0.00 $0.00 $0.00 $0.00 $5.00

Sprinklers $0.00 $0.00 $0.00 $0.00 $3.00

Subtotal $0.00 $0.00 $0.00 $0.00 $94.50

Height and Size Refinements

Number of Stories Multiplier 0.00 0.00 0.00 0.00 1.00

Height per Story Multiplier 0.00 0.00 0.00 0.00 1.00

Floor Area Multiplier 0.00 0.00 0.00 0.00 1.00

Subtotal $0.00 $0.00 $0.00 $0.00 $94.50

Cost Multipliers

Current Cost Multiplier 0.00 0.00 0.00 0.00 1.09

Local Multiplier 0.00 0.00 0.00 0.00 1.19

Final Square Foot Cost $0.00 $0.00 $0.00 $0.00 $122.58

Base Component Cost $0 $0 $0 $0 $2,702,800

Base Building Cost (via Marshall Valuation Service cost data) $2,702,800

Insurable Exclusions 5.0% of Total Building Cost ($135,140)

Indicated Insurable Value $2,567,660

Rounded $2,600,000

Value Per SF $146.07

Compiled by CBRE

3

Apartment

10 YRS

Average

Vinyl

Sales Comparison Approach

36


The following map and table summarize the comparable data used in the valuation of the

subject. A detailed description of each transaction is included in the addenda.

SUMMARY OF COMPARABLE APARTMENT SALES

Year No. Avg. Unit Actual Sale Adjusted Sale Price Per NOI Per

No. Name Type Date Built Units Size Price Price 1

Unit 1

Occ. Unit OAR

1 Lake Street Apartments,

35-50 Lake Street,

Warwick, RI

Sale Mar-17 1990 21 786 $1,550,000 $1,550,000 $73,810 100% $6,274 8.50%

2 367 Woonasquatucket Avenue,

North Providence, RI

Sale Jul-17 1988 23 1,048 $1,800,000 $1,800,000 $78,261 100% $5,478 7.00%

3 Laurel Ridge Apartments,

555 Worcester Street,

Southbridge, MA

Sale Feb-17 1988 58 971 $5,450,000 $5,450,000 $93,966 95% $6,362 6.77%

4 400 Angell Street,

Providence, RI

Sale Apr-17 1899 7 607 $850,000 $875,000 $125,000 100% $6,374 5.10%

5 County Green Apartments,

2050-2100 County Street,

Attleboro, MA

Sale Jul-17 1988 36 980 $4,300,000 $4,300,000 $119,444 100% $6,761 5.66%

6 Executive House,

292 Market Street,

Rockland, MA

Sale Nov-17 1973 40 775 $5,375,000 $5,375,000 $134,375 100% N/Av. N/Av.

Subj.

Pro

Forma

422 Pawtucket Avenue, 134

Harrison Street/635 Main Street,


--- --- 1920 &

1940

29 614 --- --- --- 95% $6,716 ---

1

Adjusted sale price for cash equivalency, lease-up and/or deferred maintenance (where applicable)

Compiled by CBRE

Transaction


37

Sale 1

The comparable is located at 35-50 Lake Street in Warwick, Rhode Island. The property consists

of two separate sites. 35 Lake Street consists of an approximately 10,752 square foot of gross

living area (GLA), 3-story apartment building, which is located on a 35,000 square foot site. 50

Lake Street consists of an approximately 8,488 square foot of gross living area (GLA), 3-story

apartment building, which is located on a 25,000 square foot site. Cumulatively, the properties

contain 21 units and 16,500 square feet of Net Rentable Area (NRA). The improvements are in

overall average condition. The property sold in March 2017 for a total consideration of

$1,550,000 or $73,810 per unit. The sale yields an 8.50% capitalization rate.

Sale 2

This comparable represents the sale of a twenty-three-unit brick multi-family property located in

North Providence. The property consists of a single three-story structure and includes seven (7)

one bedrooms and sixteen (16) two-bedroom apartments. The property sold to a local investor in

July 2017 for a total consideration of $1,800,000 or $78,261 per unit. The capitalization rate is

based on the buyer's pro-forma.

Sale 3

The comparable is a 58-unit multi-family mid-rise property located at 555 Worcester Street in

Southbridge, Worcester County, Massachusetts. The property consists of a single, four-story

apartment building with a brick exterior. The improvements were constructed in 1988 and are

situated on a 5.00-acre site. The unit mix is 100% market rate and consists of a mixture of studio,

one bedroom and two-bedroom apartments with an average unit size of 971 square feet. The

community amenities include an on-site management office, ample off-street parking, laundry

facilities, a community room, a fitness center and an outdoor swimming pool. The capitalization

rate is based on the buyer's year one pro-forma income.

Sale 4

The comparable represents a residential property located at 400 Angell Street in Providence,

Rhode Island. The property consists of a single, three-story single-family building with six

bedrooms and six bathrooms. The improvements were constructed in 1899, appears to have

been renovated around 2000 and are situated on a .160-acre site. The property went under

contract in April 2017 to be acquired for $850,000 ($200 per square foot). Upon closing the

purchase plans to spend $25,000 adding an additional bedroom and leasing the property as a

seven-bedroom student housing property. The pro-forma capitalization rate on the transaction

was 5.10% based on forecast rents of approximately $800 per month per bedroom.

Sale 5

The apartments located at Attleboro, MA are comprised of 36 units (30-two bedroom, 6-one

bedroom) totaling 35,262 rentable square feet in three 12-unit buildings built in 1987. Situated

on a 1.83-acre site, there are 72 off street parking spaces. The current debt that is in place MUST


38

be assumed and is through Arbor Commercial Mortgage. The capitalization rate is based on the

actual income in-place at the time of the sale and the trailing 12 months expense.

Sale 6

This comparable represents the sale of a 40-unit multi-family property located just off of Route

139 in Rockland, Massachusetts. The property was built in 1973 and consists of a single, four

story apartment building. The unit mix consists of eighteen (18) one-bedroom apartments and

twenty-two (22) two bedroom apartments with an average unit size of 775 square feet. The

property sold in November 2017 for a total consideration of $5,375,000 or $134,375 per unit.

A capitalization rate was not available to the appraisers.

SUMMARY OF ADJUSTMENTS

Based on our comparative analysis, the following chart summarizes the adjustments warranted to

each comparable.

APARTMENT SALES ADJUSTMENT GRID

Comparable Number 1 2 3 4 5 6

Subj.

Pro

Forma

Transaction Type Sale Sale Sale Sale Sale Sale ---

Transaction Date Mar-17 Jul-17 Feb-17 Apr-17 Jul-17 Nov-17 ---

Year Built 1990 1988 1988 1899 1988 1973 1920 & 1940

No. Units 21 23 58 7 36 40 29

Avg. Unit Size 786 1,048 971 607 980 775 614

Actual Sale Price $1,550,000 $1,800,000 $5,450,000 $850,000 $4,300,000 $5,375,000 ---

Adjusted Sale Price 1

$1,550,000 $1,800,000 $5,450,000 $875,000 $4,300,000 $5,375,000 ---

Price Per Unit 1

$73,810 $78,261 $93,966 $125,000 $119,444 $134,375 ---

Occupancy 100% 100% 95% 100% 100% 100% 95%

NOI Per Unit $6,274 $5,478 $6,362 $6,374 $6,761 N/Av. $6,716

OAR 8.50% 7.00% 6.77% 5.10% 5.66% N/Av. ---

Adj. Price Per Unit $73,810 $78,261 $93,966 $125,000 $119,444 $134,375

Property Rights Conveyed 0% 0% 0% 0% 0% 0%

Financing Terms 1

0% 0% 0% 0% 0% 0%

Conditions of Sale 0% 0% 0% 0% 0% 0%

Market Conditions (Time) 5% 5% 5% 5% 5% 0%

Subtotal - Price Per Unit $77,500 $82,174 $98,664 $131,250 $125,417 $134,375

Location 0% 0% 0% -10% 0% -10%

Project Size 0% 0% 0% -10% 0% 0%

Age/Condition 10% 5% 5% 0% 0% 0%

Quality of Construction 0% 0% 0% 0% 0% 0%

Avg. Unit Size -5% -10% -10% 0% -10% -5%

Project Amenities 0% 0% 0% 0% 0% 0%

Income Characteristics 0% 0% 0% 0% 0% 0%

Other 0% 0% 0% 0% 0% 0%

Total Other Adjustments 5% -5% -5% -20% -10% -15%

Indicated Value Per Unit $81,375 $78,065 $93,731 $105,000 $112,875 $114,219

Absolute Adjustment 20% 20% 20% 25% 15% 15%

Minimum $78,065

Average $97,544

Maximum $114,219

1

Adjusted for cash equivalency, lease-up and/or deferred maintenance (where applicable)

Compiled by CBRE

SALE PRICE PER SQUARE FOOT CONCLUSION

The primary adjustments relate to market conditions at the time of sale, location, project size,

age/condition, and average unit size. On an adjusted basis, the comparables range from


39

$78,065 to $114,219 and average $97,544 per unit. Taking the individual attributes of each

sale into consideration, we are of the opinion a value towards the middle of the adjusted range

would be most appropriate for the subject. The following chart presents the valuation conclusion:

SALES COMPARISON APPROACH Adjusted Indicators From the Grid

Total Units X Value Per Unit = Value

29 X $90,000 = $2,610,000

29 X $95,000 = $2,755,000

VALUE CONCLUSION

Indicated Stabilized & Complete Value $2,700,000

Deferred Maintenance ($30,000)

Lease-Up Discount $0

Indicated As Is Value $2,670,000

Rounded $2,700,000

Value Per Unit $93,103

Compiled by CBRE

Income Capitalization Approach

40


The following map and table summarize the primary comparable data used in the valuation of

the subject. A detailed description of each transaction is included in the addenda.

SUMMARY OF COMPARABLE APARTMENT RENTALS

Comp.

No. Property Name Location

Year

Built Occ.

No.

Units

1 1975 99% 211

2 1900 94% 124

3 1960 100% 55

4 2009 98% 197

5 1971 97% 72

6 1990 100% 2

7 1920 100% 2

8 1900 100% 2

Subj. 422 Pawtucket Avenue, 134

Harrison Street/635 Main

Street,


1920 &

1940

100% 29

Compiled by CBRE

Parkview Exchange 180 Parkview Drive,

Pawtucket, RI

Blackstone Valley

The Continental 1250 South Broadway,

East Providence, RI

325-331 Prospect Street,

Pawtucket, RI

75 South Union Street,

Pawtucket, RI

125 Goff Avenue,

Pawtucket, RI

Lofts 125

Slater Cotton Mill

124 Johnson Street,

Pawtucket, RI

221 Lowden Street, Pawtucket,

RI

165 Norwood Avenue,

Cranston, RI


41

SUBJECT RENT ROLL

SUBJECT RENTAL INFORMATION

No. of Unit Unit Recent Average Rent

Type Units Size (SF) Occ. Leases $/Unit Per SF

1BD/1BA 3 500 SF 100% $875-$925 $907 $1.81

2BD/1BA 23 600 SF 100% $750-$1,250 $885 $1.47

3BD/1BA 2 800 SF 100% $1,150-$1,220 $1,185 $1.48

4BD/1BA 1 900 SF 100% $1,300 $1,300 $1.44

Total/Average: 29 614 SF 100% ----- $922 $1.50

Compiled by CBRE

The retail income is listed as a separate line item in the direct capitalization approach and is

discussed later in the report.

MARKET RENT ESTIMATE

In order to estimate the market rates for the various floor plans, the subject unit types have been

compared with similar units in the comparable projects. The following is a discussion of each

unit type.

One-Bedroom Units

SUMMARY OF COMPARABLE RENTALS

ONE BEDROOM UNITS

Rental Rates

Comparable Plan Type Size $/Mo. $/SF

The Continental 1 BR/ 1 BA 550 SF $760 $1.38

Subject (Concluded Mkt.) 1BD/1BA 500 SF $900 $1.80

Blackstone Valley 1 BR/ 1 BA 700 SF $1,015 $1.45

Parkview Exchange 1 BR/ 1 BA 650 SF $1,050 $1.62


Lofts 125 1 BR/ 1 BA 1,012 SF $1,160 $1.15

Slater Cotton Mill 1 BR/ 1 BA 732 SF $1,370 $1.87

Compiled by CBRE

The comparable evidence indicates a range from $760 to $1,370 per unit per month, indicating

the subject’s quoted rental rates are within the range indicated by the rent comparables. The

subject’s rent roll indicates that a majority of the occupied units are leased at below the quoted

rates, which is indicative of recent rental increases that have taken effect. Considering the

available data, monthly market rent for the subject units is estimated at $900 per unit per month,

which is on the low end of the range due to the comparables being superior due to larger unit

sizes, newer construction, providence location, or buildings with additional amenities.


42

Two-Bedroom Units


TWO BEDROOM UNITS

Rental Rates


The Continental 2 BR/ 1 BA 800 SF $925 $1.16

Subject (Concluded Mkt.) 2BD/1BA 600 SF $975 $1.63


Blackstone Valley 2 BR/ 2 BA 800 SF $1,225 $1.53

Lofts 125 2 BR/ 1 BA 1,250 SF $1,261 $1.01


Slater Cotton Mill 2 BR/ 2 BA 1,000 SF $1,400 $1.40

Lofts 125 2 BR/ 2 BA 1,550 SF $1,615 $1.04

Compiled by CBRE

The comparable evidence indicates a range from $925 to $1,615 per unit per month, indicating

the subject’s quoted rental rates are within the range indicated by the rent comparables. The

subject’s rent roll indicates that a majority of the occupied units are leased at below the quoted

rates with an average of $885 per unit per month. Considering the available data, monthly

market rent for the subject units is estimated at $975 per unit per month which is on the low end

of the range due to the comparables being superior due to larger unit sizes, newer construction,

providence location, or buildings with additional amenities.

Three-Bedroom Units


THREE BEDROOM UNITS

Rental Rates


124 Johnson Street, Unit 2 3BD/1BA 1,000 SF $1,075 $1.08

Subject (Concluded Mkt.) 3BD/1BA 800 SF $1,150 $1.44

Blackstone Valley 3 BR/ 2 BA 1,000 SF $1,405 $1.41

Parkview Exchange 3 BR/ 2 BA 1,100 SF $1,475 $1.34

Lofts 125 3 BR/ 1 BA 1,600 SF $1,730 $1.08

Compiled by CBRE

The comparable evidence indicates a range from $1,075 to $1,730 per unit per month,

indicating the subject’s quoted rental rates are within the range indicated by the rent

comparables. The subject’s rent roll indicates that a majority of the occupied units are leased at

below the quoted rates, which is indicative of recent rental increases that have taken effect.

Considering the available data, monthly market rent for the subject units is estimated at $1,150

per unit per month which is on the low end of the range due to the comparables being superior

due to larger unit sizes, newer construction, providence location, or buildings with additional

amenities.


43

Four-Bedroom Units


FOUR BEDROOM UNITS

Rental Rates


221 Lowden Street 4BD/2BA 1,800 SF $1,400 $0.78

Subject (Concluded Mkt.) 4BD/1BA 900 SF $1,400 $1.56

165 Norwood Avenue 4BD/1BA 1,600 SF $1,725 $1.08

Compiled by CBRE

The comparable evidence indicates a range from $1,400 to $1,725 per unit per month,

indicating the subject’s quoted rental rates are within the range indicated by the rent

comparables. The subject’s rent roll indicates that the occupied unit is leased at below the quoted

rates, which is indicative of recent rental increases that have taken effect. The most recent lease

within the subject was signed at $1,300 per month. Considering the available data, monthly

market rent for the subject units is estimated at $1,400 per unit per month which is on the low

end of the range due to the comparables being superior due to larger unit sizes, newer

construction, providence location, or buildings with additional amenities.

Retail

The property provides two small retail units at street level at 134 Harrison Street. The current

rental rates are shown below as well as some additional local retail rents as additional support.


RETAIL UNITS

Comparable Sign Date Size $/SF

103 Newport Avenue, Pawtucket 2/28/2018 1,444 SF NNN $15.00

234 East Avenue, Pawtucket 3/6/2017 865 SF MG $15.00

Subject 972 SF MG $15.56

1452 Mineral Springs Avenue, N. Prov 4/1/2016 144 SF NNN $20.83

135 Gano Street, Providence 9/12/2017 1,131 SF MG $21.22

Compiled by CBRE

Expense

Basis

The comparables represent rental rates from $15.00 to $21.22 per square foot on a NNN and

modified gross basis. The subject units are leased on a Modified Gross basis with the tenant

responsible for electricity, telephone, and cable. We are of the opinion the units are rented at

market levels. Retail rent has been listed as a separate line item in the direct capitalization

analysis.

MARKET RENT CONCLUSIONS

The following chart shows the market rent conclusions for the subject:


44

MARKET RENT CONCLUSIONS

No. Unit Monthly Rent Annual Rent Annual

Units Unit Type Size Total SF $/Unit $/SF PRI $/Unit $/SF Total

3 1BD/1BA 500 SF 1,500 SF $900 $1.80 $2,700 $10,800 $21.60 $32,400

23 2BD/1BA 600 SF 13,800 SF $975 $1.63 $22,425 $11,700 $19.50 $269,100

2 3BD/1BA 800 SF 1,600 SF $1,150 $1.44 $2,300 $13,800 $17.25 $27,600

1 4BD/1BA 900 SF 900 SF $1,400 $1.56 $1,400 $16,800 $18.67 $16,800

29 614 SF 17,800 SF $994 $1.62 $28,825 $11,928 $19.43 $345,900

Compiled by CBRE

RENT ROLL ANALYSIS

The subject’s rent roll is illustrated as follows:

RENT ROLL ANALYSIS

Total Total

Revenue Component Monthly Rent Annual Rent

29 Occupied Units at Contract Rates $26,740 $320,880

0 Vacant Units at Market Rates $0 $0

29 Total Units @ Contract Rent $26,740 $320,880

29 Total Units @ Market Rent $28,825 $345,900

Indicated Loss-to-Lease 7.2%

Compiled by CBRE

The variation between the total annual rent reflected in the rent roll analysis and the market rent

conclusion is due to older leases that do not reflect recent increases in rental rates.

POTENTIAL RENTAL INCOME CONCLUSION

Within this analysis, potential rental income is estimated based upon the forward-looking market

rental rates over the next twelve months. This method of calculating rental income is most

prevalent in the local market and is consistent with the method used to derive overall

capitalization rates from the comparable sales data.

OPERATING HISTORY

The following table presents available operating data for the subject.


45

OPERATING HISTORY Current Partial Year Data

Year-Occupancy 2017

2018

Annualized Pro-Forma

CBRE

Estimate

Total $/Unit Total $/Unit Total $/Unit Total $/Unit

Income

Net Rental Income $303,173 $10,454 $316,764 $10,923 $319,200 $11,007 $312,175 $10,765

Retail Income Inc. above $0 Inc. above $0 Inc. above $0 $14,364 $495

Other Income $5,279 $182 $5,175 $178 $5,300 $183 $4,940 $170

Effective Gross Income $308,452 $10,636 $321,939 $11,101 $324,500 $11,190 $331,479 $11,430

Expenses

Real Estate Taxes $37,705 $1,300 $38,442 $1,326 $36,466 $1,257 $38,632 $1,332

Property Insurance $11,922 $411 $8,010 $276 $12,279 $423 $12,325 $425

Utilities $15,379 $530 $36,456 $1,257 $15,840 $546 $15,950 $550

Water & Sewer $17,615 $607 $17,994 $620 $18,144 $626 $18,850 $650

Repairs & Maintenance $16,624 $573 $19,668 $678 $24,800 $855 $26,100 $900

Management Fee ¹ $15,159 $523 $15,837 $546 $9,735 $336 $13,259 $457

Administration & General $0 $0 $0 $0 $3,100 $107 $4,350 $150

Reserves for Replacement $0 $0 $0 $0 $7,750 $267 $7,250 $250

Operating Expenses $114,404 $3,945 $136,407 $4,704 $128,114 $4,418 $136,716 $4,714

Net Operating Income $194,048 $6,691 $185,532 $6,398 $196,386 $6,772 $194,763 $6,716

¹ (Mgmt. typically analyzed as a % of EGI) 4.9% 4.9% 3.0% 4.0%

Source: Operating statements

95.0%

Other income is from coin operated laundry.

LOSS TO LEASE

Within the local market, buyers and sellers typically recognize a reduction in potential rental

income due to the difference between market and contract rental rates. In this market, lease

rates are typically flat and are anticipated to roll to market every 12-14 months on average. As a

result, actual collections typically lag behind market rates by approximately 6-8 months.

Based upon the difference between market rent and contract rent, the loss to lease associated

with the subject is estimated at 5.00% of gross rental income. Whilst loss to lease is currently

higher than this figure we would anticipate rental increases upon lease expiration for the under-

rented units to reduce the current amount. This method of calculating rental income is most

prevalent in the local market and is consistent with the method used to derive overall

capitalization rates from the comparable sales data.

VACANCY

CBRE New England’s conclusion of stabilized occupancy for the subject is illustrated in the

following table. This estimate considers both the physical and economic factors of the market.

OCCUPANCY CONCLUSIONS

CBRE - Providence Q1, 2018 95.80%

Rent Comparables - Average 97.60%

Subject's Current Occupancy 100.00%

Subject's Stabilized Occupancy 95.00%

Compiled by CBRE


46

In our appraisal calculations we have concluded a stabilized occupancy for the subject of 95.00%

allowing for natural lease-turnover and re-letting which is in-line with the above occupancy

statistics.

OTHER INCOME

OTHER INCOME

Year Total $/Unit

2017 $5,279 $182

2018 Annualized $5,175 $178

Pro-Forma $5,300 $183

CBRE Estimate $5,200 $179

Compiled by CBRE

Other income is from coin operated laundry within each building. Our estimate is in line with the

previous full year and the 2018 annualized number.

EFFECTIVE GROSS INCOME

The subject’s effective gross income is detailed as follows:

EFFECTIVE GROSS INCOME

Year Total $/Unit

2017 $308,452 $10,636

2018 Annualized $321,939 $11,101

Pro-Forma $324,500 $11,190

CBRE Estimate $331,479 $11,430

Compiled by CBRE

Our pro forma estimate shows an increase to the most recent full year as a result of increasing

rental rates in the market.

OPERATING EXPENSE ANALYSIS

Expense Comparables

The following chart summarizes expenses obtained from recognized industry publications and/or

comparable properties.


47

The comparable data and projections for the subject are summarized as follows:

OPERATING EXPENSES

Year Total $/Unit

2017 $114,404 $3,945

2018 Annualized $136,407 $4,704

Pro-Forma $128,114 $4,418

Expense Comparable 1 N/A $5,098




Compiled by CBRE

The subject’s operating expense pro forma is in line with the total per unit operating expenses

indicated by the expense comparables. It is however, above the historical operating data as a

result of our inclusion of an admin & general expense and a reserves replacement, which is

typically underwritten by investors in the market.

NET OPERATING INCOME CONCLUSION

The comparable data and projections for the subject are summarized as follows:


48

NET OPERATING INCOME EFFECTIVE GROSS INCOME

Year Total $/Unit

2017 $194,048 $6,691

2018 Annualized $185,532 $6,398

Pro-Forma $196,386 $6,772


Compiled by CBRE

Our pro forma estimate shows an increase to the most recent full-year as a result of recent rental

increase associated with improving overall market conditions.

DIRECT CAPITALIZATION

Direct capitalization is a method used to convert a single year’s estimated stabilized net operating

income into a value indication.

Comparable Sales

The overall capitalization rates (OARs) confirmed for the comparable sales analyzed in the sales

comparison approach are as follows:

COMPARABLE CAPITALIZATION RATES

Sale Sale Price

Sale Date $/Unit Occupancy OAR

1 Mar-17 $73,810 100% 8.50%

2 Jul-17 $78,261 100% 7.00%

3 Feb-17 $93,966 95% 6.77%

4 Apr-17 $125,000 100% 5.10%

5 Jul-17 $119,444 100% 5.66%

Indicated OAR: 95% 5.10%-8.50%

Compiled by: CBRE

Published Investor Surveys

The results of the most recent investor surveys are summarized in the following chart.


49

OVERALL CAPITALIZATION RATES

Investment Type OAR Range Average

CBRE Apartments

Class A 3.00% - 8.00% 4.97%

Class B 3.75% - 8.00% 5.48%

Class C 3.00% - 10.50% 6.43%

RealtyRates.com

Apartments 3.87% - 13.06% 8.57%

Garden/Suburban TH 3.87% - 11.79% 7.84%

Hi-Rise/Urban TH 4.90% - 13.06% 8.82%

PwC Apartment

National Data 3.50% - 7.50% 5.26%

Indicated OAR: 4.97%-7.84%

Compiled by: CBRE

Band of Investment

The band of the investment technique has been utilized as a crosscheck to the foregoing

techniques. The Mortgage Interest Rate and the Equity Dividend Rate (EDR) are based upon

current market yields for similar investments. The analysis is shown in the following table.

BAND OF INVESTMENT

Mortgage Interest Rate 4.25%

Mortgage Term (Amortization Period) 30 Years

Mortgage Ratio (Loan-to-Value) 70%

Mortgage Constant (monthly payments) 0.05903

Equity Dividend Rate (EDR) 7%

Mortgage Requirement 70% x 0.05903 = 0.04132

Equity Requirement 30% x 0.07000 = 0.02100

100% 0.06232

Indicated OAR: 6.20%

Compiled by: CBRE

Debt Coverage Ratio

The debt coverage ratio (DCR) is the ratio of net operating income to annual debt service and

measures the ability of a given property to meet its debt service out of net operating income.

Utilizing data obtained from knowledgeable mortgage finance professionals, the subject’s

projected NOI can be tested for reasonableness against the market’s typical loan parameters to

determine whether or not the DCR is positive. This analysis is shown in the following table.


50

DEBT COVERAGE RATIO ANALYSIS

Estimated As Is Value $2,700,000

Mortgage Ratio (Loan-to-Value) 70%

Estimated Mortage Loan Amount $1,890,000

Mortgage Interest Rate 4.25%

Mortgage Term (Amortization Period) 30 Years

Mortgage Constant (monthly payments) 0.05903

Annual Debt Service (monthly payments) $111,572

Estimated NOI $194,763

Estimated Debt Coverage Ratio (DCR) 1.75

Market Debt DCR 1.40

Positive DCR? (Y or N) Yes

Compiled by: CBRE

Capitalization Rate Conclusion

The following chart summarizes the OAR conclusions.

OVERALL CAPITALIZATION RATE - CONCLUSION

Source Indicated OAR

Comparable Sales 5.10%-8.50%

Published Surveys 4.97%-7.84%

CBRE Estimate 7.25%

Compiled by: CBRE

All of the comparable data presented above presents a consistent indication with the local

transactions indicating rates slightly above the national indications. Overall, a capitalization rate

in the middle portion of the local transactions best represent pricing characteristics for the subject

with the national data used as secondary support.

Direct Capitalization Summary

A summary of the direct capitalization is illustrated in the following chart.


51

DIRECT CAPITALIZATION SUMMARY

Income $/Door/Mo. $/Unit/Yr Total

Potential Rental Income $288 $11,928 $345,900

Loss to Lease 5.00% (14) ($596) ($17,295)

Adjusted Rental Income $274 $11,331 $328,605

Vacancy & Credit Loss 5.00% (14) ($567) ($16,430)

Net Rental Income $260 $10,765 $312,175

Retail Income 13 $521 $15,120

Other Income 4 $179 $5,200

Vacancy & Credit Loss 5.00% (1) ($35) ($1,016)

Effective Gross Income $276 $11,430 $331,479

Expenses

Real Estate Taxes $1,332 $38,632

Property Insurance $425 $12,325

Utilities $550 $15,950

Water & Sewer $650 $18,850

Repairs & Maintenance $900 $26,100

Management Fee 4.00% $457 $13,259

Administration & General $150 $4,350

Reserves for Replacement $250 $7,250

Operating Expenses $4,714 $136,716

Operating Expense Ratio 41.24%

Net Operating Income $6,716 $194,763

OAR / 7.25%

Indicated Stabilized & Complete Value $2,686,382

Rounded $2,700,000

Deferred Maintenance (30,000)

Lease-Up Discount -

Indicated As Is Value $2,656,382

Rounded $2,700,000

Value Per Unit $93,103

Compiled by CBRE


52

CONCLUSION OF INCOME CAPITALIZATION APPROACH

The conclusions via the valuation methods employed for this approach are as follows:

INCOME CAPITALIZATION APPROACH VALUES

Direct Capitalization Method $2,700,000

Discounted Cash Flow Analysis $2,500,000 Reconciled Value $2,700,000

Compiled by CBRE

Primary emphasis has been placed on the direct capitalization approach. This method is

considered to best reflect the actions of buyers and sellers currently active in this market.

Reconciliation of Value

53

Reconciliation of Value

The value indications from the approaches to value are summarized as follows:

SUMMARY OF VALUE CONCLUSIONS

Sales Comparison Approach $2,700,000

Income Capitalization Approach $2,700,000

Reconciled Value $2,700,000

Compiled by CBRE

The cost approach typically gives a reliable value indication when there is strong support for the

replacement cost estimate and when there is minimal depreciation. Considering the substantial

amount of depreciation present in the property, the reliability of the cost approach is somewhat

diminished. Therefore, the cost approach is not considered applicable to the subject.

In the sales comparison approach, the subject is compared to similar properties that have been

sold recently or for which listing prices or offers are known. The sales used in this analysis are

considered highly comparable to the subject, and the required adjustments were based on

reasonable and well-supported rationale. In addition, market participants are currently analyzing

purchase prices on investment properties as they relate to available substitutes in the market.

Therefore, the sales comparison approach is considered to provide a reliable value indication,

but has been given secondary emphasis in the final value reconciliation.

The income capitalization approach is applicable to the subject since it is an income producing

property leased in the open market. Market participants are primarily analyzing properties based

on their income generating capability. Therefore, the income capitalization approach is

considered a reasonable and substantiated value indicator and has been given primary emphasis

in the final value estimate.

Based on the foregoing, the market value of the subject has been concluded as follows:

MARKET VALUE CONCLUSION

Appraisal Premise Interest Appraised Date of Value Value Conclusion

As Is Leased Fee Interest July 11, 2018 $2,700,000

Compiled by CBRE

Assumptions and Limiting Conditions

54


1. Unless otherwise specifically noted in the body of the report, it is assumed that title to the property or properties

appraised is clear and marketable and that there are no recorded or unrecorded matters or exceptions to title that

would adversely affect marketability or value. CBRE New England is not aware of any title defects nor has it been

advised of any unless such is specifically noted in the report. CBRE New England, however, has not examined title

and makes no representations relative to the condition thereof. Documents dealing with liens, encumbrances,

easements, deed restrictions, clouds and other conditions that may affect the quality of title have not been

reviewed. Insurance against financial loss resulting in claims that may arise out of defects in the subject’s title

should be sought from a qualified title company that issues or insures title to real property.

2. Unless otherwise specifically noted in the body of this report, it is assumed: that the existing improvements on the

property or properties being appraised are structurally sound, seismically safe and code conforming; that all

building systems (mechanical/electrical, HVAC, elevator, plumbing, etc.) are in good working order with no major

deferred maintenance or repair required; that the roof and exterior are in good condition and free from intrusion

by the elements; that the property or properties have been engineered in such a manner that the improvements, as

currently constituted, conform to all applicable local, state, and federal building codes and ordinances. CBRE New

England professionals are not engineers and are not competent to judge matters of an engineering nature. CBRE

New England has not retained independent structural, mechanical, electrical, or civil engineers in connection with

this appraisal and, therefore, makes no representations relative to the condition of improvements. Unless

otherwise specifically noted in the body of the report: no problems were brought to the attention of CBRE New

England by ownership or management; CBRE New England inspected less than 100% of the entire interior and

exterior portions of the improvements; and CBRE New England was not furnished any engineering studies by the

owners or by the party requesting this appraisal. If questions in these areas are critical to the decision process of

the reader, the advice of competent engineering consultants should be obtained and relied upon. It is specifically

assumed that any knowledgeable and prudent purchaser would, as a precondition to closing a sale, obtain a

satisfactory engineering report relative to the structural integrity of the property and the integrity of building

systems. Structural problems and/or building system problems may not be visually detectable. If engineering

consultants retained should report negative factors of a material nature, or if such are later discovered, relative to

the condition of improvements, such information could have a substantial negative impact on the conclusions

reported in this appraisal. Accordingly, if negative findings are reported by engineering consultants, CBRE New

England reserves the right to amend the appraisal conclusions reported herein.

3. Unless otherwise stated in this report, the existence of hazardous material, which may or may not be present on

the property was not observed by the appraisers. CBRE New England has no knowledge of the existence of such

materials on or in the property. CBRE New England, however, is not qualified to detect such substances. The

presence of substances such as asbestos, urea formaldehyde foam insulation, contaminated groundwater or other

potentially hazardous materials may affect the value of the property. The value estimate is predicated on the

assumption that there is no such material on or in the property that would cause a loss in value. No responsibility

is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. The

client is urged to retain an expert in this field, if desired.

We have inspected, as thoroughly as possible by observation, the land; however, it was impossible to personally

inspect conditions beneath the soil. Therefore, no representation is made as to these matters unless specifically

considered in the appraisal.

4. All furnishings, equipment and business operations, except as specifically stated and typically considered as part of

real property, have been disregarded with only real property being considered in the report unless otherwise

stated. Any existing or proposed improvements, on or off-site, as well as any alterations or repairs considered, are

assumed to be completed in a workmanlike manner according to standard practices based upon the information

submitted to CBRE New England This report may be subject to amendment upon re-inspection of the subject

subsequent to repairs, modifications, alterations and completed new construction. Any estimate of Market Value is

as of the date indicated; based upon the information, conditions and projected levels of operation.

5. It is assumed that all factual data furnished by the client, property owner, owner’s representative, or persons

designated by the client or owner to supply said data are accurate and correct unless otherwise specifically noted

in the appraisal report. Unless otherwise specifically noted in the appraisal report, CBRE New England has no

reason to believe that any of the data furnished contain any material error. Information and data referred to in

this paragraph include, without being limited to, numerical street addresses, lot and block numbers, Assessor’s

Parcel Numbers, land dimensions, square footage area of the land, dimensions of the improvements, gross

building areas, net rentable areas, usable areas, unit count, room count, rent schedules, income data, historical

operating expenses, budgets, and related data. Any material error in any of the above data could have a


55

substantial impact on the conclusions reported. Thus, CBRE New England reserves the right to amend conclusions

reported if made aware of any such error. Accordingly, the client-addressee should carefully review all

assumptions, data, relevant calculations, and conclusions within 30 days after the date of delivery of this report

and should immediately notify CBRE New England of any questions or errors.

6. The date of value to which any of the conclusions and opinions expressed in this report apply, is set forth in the

Letter of Transmittal. Further, that the dollar amount of any value opinion herein rendered is based upon the

purchasing power of the American Dollar on that date. This appraisal is based on market conditions existing as of

the date of this appraisal. Under the terms of the engagement, we will have no obligation to revise this report to

reflect events or conditions which occur subsequent to the date of the appraisal. However, CBRE New England will

be available to discuss the necessity for revision resulting from changes in economic or market factors affecting the

subject.

7. CBRE New England assumes no private deed restrictions, limiting the use of the subject in any way.

8. Unless otherwise noted in the body of the report, it is assumed that there are no mineral deposit or subsurface

rights of value involved in this appraisal, whether they be gas, liquid, or solid. Nor are the rights associated with

extraction or exploration of such elements considered unless otherwise stated in this appraisal report. Unless

otherwise stated it is also assumed that there are no air or development rights of value that may be transferred.

9. CBRE New England is not aware of any contemplated public initiatives, governmental development controls, or

rent controls that would significantly affect the value of the subject.

10. The estimate of Market Value, which may be defined within the body of this report, is subject to change with

market fluctuations over time. Market value is highly related to exposure, time promotion effort, terms, motivation,

and conclusions surrounding the offering. The value estimate(s) consider the productivity and relative

attractiveness of the property, both physically and economically, on the open market.

11. Any cash flows included in the analysis are forecasts of estimated future operating characteristics are predicated

on the information and assumptions contained within the report. Any projections of income, expenses and

economic conditions utilized in this report are not predictions of the future. Rather, they are estimates of current

market expectations of future income and expenses. The achievement of the financial projections will be affected

by fluctuating economic conditions and is dependent upon other future occurrences that cannot be assured.

Actual results may vary from the projections considered herein. CBRE New England does not warrant these

forecasts will occur. Projections may be affected by circumstances beyond the current realm of knowledge or

control of CBRE New England

12. Unless specifically set forth in the body of the report, nothing contained herein shall be construed to represent any

direct or indirect recommendation of CBRE New England to buy, sell, or hold the properties at the value stated.

Such decisions involve substantial investment strategy questions and must be specifically addressed in consultation

form.

13. Also, unless otherwise noted in the body of this report, it is assumed that no changes in the present zoning

ordinances or regulations governing use, density, or shape are being considered. The property is appraised

assuming that all required licenses, certificates of occupancy, consents, or other legislative or administrative

authority from any local, state, nor national government or private entity or organization have been or can be

obtained or renewed for any use on which the value estimates contained in this report is based, unless otherwise

stated.

14. This study may not be duplicated in whole or in part without the specific written consent of CBRE New England nor

may this report or copies hereof be transmitted to third parties without said consent, which consent CBRE New

England reserves the right to deny. Exempt from this restriction is duplication for the internal use of the client-

addressee and/or transmission to attorneys, accountants, or advisors of the client-addressee. Also exempt from

this restriction is transmission of the report to any court, governmental authority, or regulatory agency having

jurisdiction over the party/parties for whom this appraisal was prepared, provided that this report and/or its

contents shall not be published, in whole or in part, in any public document without the express written consent of

CBRE New England which consent CBRE New England reserves the right to deny. Finally, this report shall not be

advertised to the public or otherwise used to induce a third party to purchase the property or to make a “sale” or

“offer for sale” of any “security”, as such terms are defined and used in the Securities Act of 1933, as amended.

Any third party, not covered by the exemptions herein, who may possess this report, is advised that they should rely

on their own independently secured advice for any decision in connection with this property. CBRE New England

shall have no accountability or responsibility to any such third party.

15. Any value estimate provided in the report applies to the entire property, and any pro ration or division of the title

into fractional interests will invalidate the value estimate, unless such pro ration or division of interests has been set

forth in the report.


56

16. The distribution of the total valuation in this report between land and improvements applies only under the existing

program of utilization. Component values for land and/or buildings are not intended to be used in conjunction

with any other property or appraisal and are invalid if so used.

17. The maps, plats, sketches, graphs, photographs and exhibits included in this report are for illustration purposes

only and are to be utilized only to assist in visualizing matters discussed within this report. Except as specifically

stated, data relative to size or area of the subject and comparable properties has been obtained from sources

deemed accurate and reliable. None of the exhibits are to be removed, reproduced, or used apart from this

report.

18. No opinion is intended to be expressed on matters which may require legal expertise or specialized investigation

or knowledge beyond that customarily employed by real estate appraisers. Values and opinions expressed

presume that environmental and other governmental restrictions/conditions by applicable agencies have been

met, including but not limited to seismic hazards, flight patterns, decibel levels/noise envelopes, fire hazards,

hillside ordinances, density, allowable uses, building codes, permits, licenses, etc. No survey, engineering study or

architectural analysis has been made known to CBRE New England unless otherwise stated within the body of this

report. If the Consultant has not been supplied with a termite inspection, survey or occupancy permit, no

responsibility or representation is assumed or made for any costs associated with obtaining same or for any

deficiencies discovered before or after they are obtained. No representation or warranty is made concerning

obtaining these items. CBRE New England assumes no responsibility for any costs or consequences arising due to

the need, or the lack of need, for flood hazard insurance. An agent for the Federal Flood Insurance Program

should be contacted to determine the actual need for Flood Hazard Insurance.

19. Acceptance and/or use of this report constitutes full acceptance of the Contingent and Limiting Conditions and

special assumptions set forth in this report. It is the responsibility of the Client, or client’s designees, to read in full,

comprehend and thus become aware of the aforementioned contingencies and limiting conditions. Neither the

Appraiser nor CBRE New England assumes responsibility for any situation arising out of the Client’s failure to

become familiar with and understand the same. The Client is advised to retain experts in areas that fall outside

the scope of the real estate appraisal/consulting profession if so desired.

20. CBRE New England assumes that the subject analyzed herein will be under prudent and competent management

and ownership; neither inefficient or super-efficient.

21. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations

and laws unless noncompliance is stated, defined and considered in the appraisal report.

22. No survey of the boundaries of the property was undertaken. All areas and dimensions furnished are presumed to

be correct. It is further assumed that no encroachments to the realty exist.

23. The Americans with Disabilities Act (ADA) became effective January 26, 1992. Notwithstanding any discussion of

possible readily achievable barrier removal construction items in this report, CBRE New England has not made a

specific compliance survey and analysis of this property to determine whether it is in conformance with the various

detailed requirements of the ADA. It is possible that a compliance survey of the property together with a detailed

analysis of the requirements of the ADA could reveal that the property is not in compliance with one or more of the

requirements of the ADA. If so, this fact could have a negative effect on the value estimated herein. Since CBRE

New England has no specific information relating to this issue, nor is CBRE New England qualified to make such

an assessment, the effect of any possible non-compliance with the requirements of the ADA was not considered in

estimating the value of the subject.

24. Client shall not indemnify Appraiser or hold Appraiser harmless unless and only to the extent that the Client

misrepresents, distorts, or provides incomplete or inaccurate appraisal results to others, which acts of the Client

approximately result in damage to Appraiser. Notwithstanding the foregoing, Appraiser shall have no obligation

under this Section with respect to any loss that is caused solely by the active negligence or willful misconduct of a

Client and is not contributed to by any act or omission (including any failure to perform any duty imposed by law)

by Appraiser. Client shall indemnify and hold Appraiser harmless from any claims, expenses, judgments or other

items or costs arising as a result of the Client's failure or the failure of any of the Client's agents to provide a

complete copy of the appraisal report to any third party. In the event of any litigation between the parties, the

prevailing party to such litigation shall be entitled to recover, from the other, reasonable attorney fees and costs.

Addenda

ADDENDA

Addenda

Addendum A

ENGAGEMENT LETTER


Proposal and Contract for Services

CBRE | NE Partners 33 Arch Street, 28th Floor Boston, MA 02110 www.cbre.us/valuation

July 10, 2018 James T. Moore, MAI, MRICS Executive Vice President

Justin Decter GREYSTONE & CO., INC. 152 West 57th Street, 60th Floor New York, NY 10019 Phone: 917.421.4541 Email: [email protected] RE: Assignment Agreement 422 Pawtucket, 134 Harrison & 635 Main Street

Pawtucket, RI

Dear Mr. Decter:

We are pleased to submit this proposal and our Terms and Conditions for this assignment.

PROPOSAL SPECIFICATIONS Purpose: To estimate the Market Value of the referenced real estate

Premise: As Is Rights Appraised: Leased Fee Intended Use: Underwriting Purposes Intended User: The intended user is GREYSTONE & CO., INC. and Fannie Mae,

and such other parties and entities (if any) expressly recognized by CBRE | NE Partners as “Intended Users” (as further defined herein).

Reliance: Reliance on any reports produced by CBRE | NE PARTNERS under this Agreement is extended solely to parties and entities expressly acknowledged in a signed writing by CBRE | NE PARTNERS as Intended Users of the respective reports, provided that any conditions to such acknowledgement required by CBRE | NE PARTNERS or hereunder have been satisfied. Parties or entities other than Intended Users who obtain a copy of the report or any portion thereof (including Client if it is not named as an Intended User), whether as a result of its direct dissemination or by any other means, may not rely upon any opinions or conclusions contained in the report or such portions thereof, and CBRE | NE PARTNERS will not be responsible for any unpermitted use of the report, its conclusions or contents or have any liability in connection therewith.

Justin Decter

Assignment Agreement Page 2 of 8

July 10, 2018

www.cbre.us/valuation


Inspection: CBRE will conduct a physical inspection of both the interior and exterior of the subject property, as well as its surrounding environs on the effective date of appraisal.

Valuation Approaches: Sale Comparison and Income Approaches Report Type: Standard Appraisal Report Appraisal Standards: USPAP Appraisal Fee: $3,500 Expenses: Fee includes all associated expenses Retainer: A retainer is not required for this assignment Payment Terms: Final payment is due upon delivery of the final report or within thirty

(30) days of your receipt of the draft report, whichever is sooner. The fee is considered earned upon delivery of the draft report. We will invoice you for the assignment in its entirety at the completion of the assignment.

Delivery Instructions: CBRE | NE PARTNERS encourages our clients to join in our environmental sustainability efforts by accepting an electronic copy of the report. An Adobe PDF file via email will be delivered to Justin. [email protected]. The client has requested No (0) bound final copy (ies).

Delivery Schedule: Draft Report: 15 business days after Start Date Final Report: Upon Client’s request

Start Date: The appraisal process will start upon receipt of your signed agreement and the property specific data.

Acceptance Date: These specifications are subject to modification if this proposal is not accepted within 5 business days from the date of this letter.

When executed and delivered by all parties, this letter, together with the Terms and Conditions and the Specific Property Data Request attached hereto and incorporated herein, will serve as the Agreement for appraisal services by and between CBRE | NE PARTNERS and Client. Each person signing below represents that it is authorized to enter into this Agreement and to bind the respective parties hereto.

We appreciate this opportunity to be of service to you on this assignment. If you have additional questions, please contact us.

Sincerely,

shelly.daleo

Rectangle

Justin Decter


July 10, 2018



CBRE | NE Partners Valuation & Advisory Services

James T. Moore Executive Vice President As Agent for CBRE | NE Partners T 617.912.6977 [email protected]

AGREED AND ACCEPTED FOR GREYSTONE & CO., INC.: Signature Date Name Title Phone Number E-Mail Address

07/10/2018

Transaction ManagerBenjamin Bullock

[email protected]

Justin Decter


July 10, 2018

Revised July 5, 2016


TERMS AND CONDITIONS 1. The Terms and Conditions herein are part of an agreement for appraisal services (the “Agreement” )

between CBRE | NE Partners (the “Appraiser”) and the client signing this Agreement, and for whom the appraisal services will be performed (the “Client”), and shall be deemed a part of such Agreement as though set forth in full therein. The Agreement shall be governed by the laws of the state where the appraisal office is located for the Appraiser executing this Agreement.

2. Client shall be responsible for the payment of all fees stipulated in the Agreement. Payment of the appraisal fee and preparation of an appraisal report (the “Appraisal Report, or the “report”) are not contingent upon any predetermined value or on an action or event resulting from the analyses, opinions, conclusions, or use of the Appraisal Report. Final payment is due as provided in the Proposal Specifications Section of this Agreement. If a draft report is requested, the fee is considered earned upon delivery of the draft report. It is understood that the Client may cancel this assignment in writing at any time prior to delivery of the completed report. In such event, the Client is obligated only for the prorated share of the fee based upon the work completed and expenses incurred (including travel expenses to and from the job site), with a minimum charge of $500. Additional copies of the Appraisal Reports are available at a cost of $250 per original color copy and $100 per photocopy (black and white), plus shipping fees of $30 per report.

3. If Appraiser is subpoenaed or ordered to give testimony, produce documents or information, or otherwise required or requested by Client or a third party to participate in meetings, phone calls, conferences, litigation or other legal proceedings (including preparation for such proceedings) because of, connected with or in any way pertaining to this engagement, the Appraisal Report, the Appraiser’s expertise, or the Property, Client shall pay Appraiser’s additional costs and expenses, including but not limited to Appraiser’s attorneys’ fees, and additional time incurred by Appraiser based on Appraiser’s then-prevailing hourly rates and related fees. Such charges include and pertain to, but are not limited to, time spent in preparing for and providing court room testimony, depositions, travel time, mileage and related travel expenses, waiting time, document review and production, and preparation time (excluding preparation of the Appraisal Report), meeting participation, and Appraiser’s other related commitment of time and expertise. Hourly charges and other fees for such participation will be provided upon request. In the event Client requests additional appraisal services beyond the scope and purpose stated in the Agreement, Client agrees to pay additional fees for such services and to reimburse related expenses, whether or not the completed report has been delivered to Client at the time of such request.

4. Appraiser shall have the right to terminate this Agreement at any time for cause effective immediately upon written notice to Client on the occurrence of fraud or the willful misconduct of Client, its employees or agents, or without cause upon 30 days written notice.

5. In the event Client fails to make payments when due then, from the date due until paid, the amount due and payable shall bear interest at the maximum rate permitted in the state where the office is located for the Appraiser executing the Agreement. In the event either party institutes legal action against the other to enforce its rights under this Agreement, the prevailing party shall be entitled to recover its reasonable attorney’s fees and expenses. Each party waives the right to a trial by jury in any action arising under this Agreement.

6. Appraiser assumes there are no major or significant items or issues affecting the Property that would require the expertise of a professional building contractor, engineer, or environmental consultant for Appraiser to prepare a valid report. Client acknowledges that such additional expertise is not covered

Justin Decter


July 10, 2018



in the Appraisal fee and agrees that, if such additional expertise is required, it shall be provided by others at the discretion and direction of the Client, and solely at Client’s additional cost and expense.

7. In the event of any dispute between Client and Appraiser relating to this Agreement, or Appraiser's or Client's performance hereunder, Appraiser and Client agree that such dispute shall be resolved by means of binding arbitration in accordance with the commercial arbitration rules of the American Arbitration Association, and judgment upon the award rendered by an arbitrator may be entered in any court of competent jurisdiction. Depositions may be taken and other discovery obtained during such arbitration proceedings to the same extent as authorized in civil judicial proceedings in the state where the office of the Appraiser executing this Agreement is located. The arbitrator shall be limited to awarding compensatory damages and shall have no authority to award punitive, exemplary or similar damages. The prevailing party in the arbitration proceeding shall be entitled to recover its expenses from the losing party, including costs of the arbitration proceeding, and reasonable attorney's fees. Client acknowledges that Appraiser is being retained hereunder as an independent contractor to perform the services described herein and nothing in this Agreement shall be deemed to create any other relationship between Client and Appraiser. This engagement shall be deemed concluded and the services hereunder completed upon delivery to Client of the Appraisal Report discussed herein.

8. All statements of fact in the report which are used as the basis of the Appraiser's analyses, opinions, and conclusions will be true and correct to Appraiser's actual knowledge and belief. Appraiser does not make any representation or warranty, express or implied, as to the accuracy or completeness of the information or the condition of the Property furnished to Appraiser by Client or others. TO THE FULLEST EXTENT PERMITTED BY LAW, APPRAISER DISCLAIMS ANY GUARANTEE OR WARRANTY AS TO THE OPINIONS AND CONCLUSIONS PRESENTED ORALLY OR IN ANY APPRAISAL REPORT, INCLUDING WITHOUT LIMITATION ANY WARRANTY OF FITNESS FOR ANY PARTICULAR PURPOSE EVEN IF KNOWN TO APPRAISER. Furthermore, the conclusions and any permitted reliance on and use of the Appraisal Report shall be subject to the assumptions, limitations, and qualifying statements contained in the report.

9. Appraiser shall have no responsibility for legal matters, including zoning, or questions of survey or title, soil or subsoil conditions, engineering, or other similar technical matters. The report will not constitute a survey of the Property analyzed.

10. Client shall provide Appraiser with such materials with respect to the assignment as are requested by Appraiser and in the possession or under the control of Client. Client shall provide Appraiser with sufficient access to the Property to be analyzed, and hereby grants permission for entry unless discussed in advance to the contrary.

11. The data gathered in the course of the assignment (except data furnished by Client) and the report prepared pursuant to the Agreement are, and will remain, the property of Appraiser. With respect to data provided by Client, Appraiser shall not violate the confidential nature of the Appraiser-Client relationship by improperly disclosing any proprietary information furnished to Appraiser. Notwithstanding the foregoing, Appraiser is authorized by Client to disclose all or any portion of the report and related data as may be required by statute, government regulation, legal process, or judicial decree, including to appropriate representatives of the Appraisal Institute if such disclosure is required to enable Appraiser to comply with the Bylaws and Regulations of such Institute as now or hereafter in effect.

12. Unless specifically noted, in preparing the Appraisal Report the Appraiser will not be considering the possible existence of asbestos, PCB transformers, or other toxic, hazardous, or contaminated substances and/or underground storage tanks (collectively, “Hazardous Material) on or affecting the Property, or the cost of encapsulation or removal thereof. Further, Client represents that there is no major or significant deferred maintenance of the Property that would require the expertise of a professional cost

Justin Decter


July 10, 2018



estimator or contractor. If such repairs are needed, the estimates are to be prepared by others, at Client’s discretion and direction, and are not covered as part of the Appraisal fee.

13. In the event Client intends to use the Appraisal Report in connection with a tax matter, Client acknowledges that Appraiser provides no warranty, representation or prediction as to the outcome of such tax matter. Client understands and acknowledges that any relevant taxing authority (whether the Internal Revenue Service or any other federal, state or local taxing authority) may disagree with or reject the Appraisal Report or otherwise disagree with Client’s tax position, and further understands and acknowledges that the taxing authority may seek to collect additional taxes, interest, penalties or fees from Client beyond what may be suggested by the Appraisal Report. Client agrees that Appraiser shall have no responsibility or liability to Client or any other party for any such taxes, interest, penalties or fees and that Client will not seek damages or other compensation from Appraiser relating to any such taxes, interest, penalties or fees imposed on Client, or for any attorneys’ fees, costs or other expenses relating to Client’s tax matters.

14. Appraiser shall have no liability with respect to any loss, damage, claim or expense incurred by or asserted against Client arising out of, based upon or resulting from Client’s failure to provide accurate or complete information or documentation pertaining to an assignment ordered under or in connection with this Agreement, including Client’s failure, or the failure of any of Client’s agents, to provide a complete copy of the Appraisal Report to any third party.

15. LIMITATION OF LIABILITY. EXCEPT TO THE EXTENT ARISING FROM SECTION 16 BELOW, OR SECTION 17 IF APPLICABLE, IN NO EVENT SHALL EITHER PARTY OR ANY OF ITS AFFILIATE, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, OR CONTRACTORS BE LIABLE TO THE OTHER, WHETHER BASED IN CONTRACT, WARRANTY, INDEMNITY, NEGLIGENCE, STRICT LIABILITY OR OTHER TORT OR OTHERWISE, FOR ANY SPECIAL, CONSEQUENTIAL, PUNITIVE, INCIDENTAL OR INDIRECT DAMAGES, AND AGGREGATE DAMAGES IN CONNECTION WITH THIS AGREEMENT FOR EITHER PARTY (EXCLUDING THE OBLIGATION TO PAY THE FEES REQUIRED HEREUNDER) SHALL NOT EXCEED THE GREATER OF THE TOTAL FEES PAYABLE TO APPRAISER UNDER THIS AGREEMENT OR TEN THOUSAND DOLLARS ($10,000). THIS LIABILITY LIMITATION SHALL NOT APPLY IN THE EVENT OF A FINAL FINDING BY AN ARBITRATOR OR A COURT OF COMPETENT JURISDICTION THAT SUCH LIABILITY IS THE RESULT OF A PARTY’S FRAUD OR WILLFUL MISCONDUCT.

16. Client shall not disseminate, distribute, make available or otherwise provide any Appraisal Report prepared hereunder to any third party (including without limitation, incorporating or referencing the Appraisal Report , in whole or in part, in any offering or other material intended for review by other parties) except to (i) any third party expressly acknowledged in a signed writing by Appraiser as an “Intended User” of the Appraisal Report provided that either Appraiser has received an acceptable release from such third party with respect to such Appraisal Report or Client provides acceptable indemnity protections to Appraiser against any claims resulting from the distribution of the Appraisal Report to such third party, (ii) any third party service provider (including rating agencies and auditors) using the Appraisal Report in the course of providing services for the sole benefit of an Intended User, or (iii) as required by statute, government regulation, legal process, or judicial decree. In the event Appraiser consents, in writing, to Client incorporating or referencing the Appraisal Report in any offering or other materials intended for review by other parties, Client shall not distribute, file, or otherwise make such materials available to any such parties unless and until Client has provided Appraiser with complete copies of such materials and Appraiser has approved all such materials in writing. Client shall not modify any such materials once approved by Appraiser. In the absence of satisfying the conditions of this paragraph with respect to a party who is not designated as an Intended User, in no event shall the receipt of an Appraisal Report by such party extend any right to the party to use and rely on such report, and Appraiser shall have no liability for such unauthorized use and reliance on any Appraisal Report. In the event Client breaches the provisions of this paragraph, Client shall indemnify, defend and hold

Justin Decter


July 10, 2018



Appraiser, and its affiliates and their officers, directors, employees, contractors, agents and other representatives (Appraiser and each of the foregoing an “Indemnified Party” and collectively the “Indemnified Parties”), fully harmless from and against all losses, liabilities, damages and expenses (collectively, “Damages”) claimed against, sustained or incurred by any Indemnified Party arising out of or in connection with such breach, regardless of any negligence on the part of any Indemnified Party in preparing the Appraisal Report.

17. In the event an Intended User incorporates or references the Appraisal Report, in whole or in part, in any offering or other material intended for review by other parties, Client shall indemnify, defend and hold each of the Indemnified Parties harmless from and against any Damages in connection with (i) any transaction contemplated by this Agreement or in connection with the appraisal or the engagement of or performance of services by any Indemnified Party hereunder, (ii) any actual or alleged untrue statement of a material fact, or the actual or alleged failure to state a material fact necessary to make a statement not misleading in light of the circumstances under which it was made with respect to all information furnished to any Indemnified Party or made available to a prospective party to a transaction, or (iii) an actual or alleged violation of applicable law by an Intended User (including, without limitation, securities laws) or the negligent or intentional acts or omissions of an Intended User (including the failure to perform any duty imposed by law); and will reimburse each Indemnified Party for all reasonable fees and expenses (including fees and expenses of counsel) (collectively, “Expenses”) as incurred in connection with investigating, preparing, pursuing or defending any threatened or pending claim, action, proceeding or investigation (collectively, “Proceedings”) arising therefrom, and regardless of whether such Indemnified Party is a formal party to such Proceeding. Client agrees not to enter into any waiver, release or settlement of any Proceeding (whether or not any Indemnified Party is a formal party to such Proceeding) without the prior written consent of Appraiser (which consent will not be unreasonably withheld or delayed) unless such waiver, release or settlement includes an unconditional release of each Indemnified Party from all liability arising out of such Proceeding.

18. Time Period for Legal Action. Unless the time period is shorter under applicable law, except in connection with paragraphs 16 and 17 above, Appraiser and Client agree that any legal action or lawsuit by one party against the other party or its affiliates, officers, directors, employees, contractors, agents, or other representatives, whether based in contract, warranty, indemnity, negligence, strict liability or other tort or otherwise, relating to (a) this Agreement or the Appraisal Report, (b) any services or appraisals under this Agreement or (c) any acts or conduct relating to such services or appraisals, shall be filed within two (2) years from the date of delivery to Client of the Appraisal Report to which the claims or causes of action in the legal action or lawsuit relate. The time period stated in this section shall not be extended by any incapacity of a party or any delay in the discovery or accrual of the underlying claims, causes of action or damages.


Proposal and Contract for Services


SPECIFIC PROPERTY DATA REQUEST

In order to complete this assignment under the terms outlined, CBRE | NE Partners, Valuation & Advisory Services, will require the following specific information for the property:

1. PLEASE NOTIFY US IMMEDIATELY IF ANY OTHER CBRE SERVICE LINE (INCLUDING CAPSTONE)

IS INVOLVED IN THE BROKERAGE, FINANCING, INVESTMENT OR MANAGEMENT OF THIS ASSET.

2. Current title report or title holder name 3. Legal description 4. Survey and/or plat map 5. Site plan for the existing development 6. Building plans and specifications, including square footage for all buildings and suites 7. Current county property tax assessment or tax bill 8. Details on any sale, contract, or listing of the property within the past three years 9. Engineering studies, soil tests or environmental assessments 10. Ground lease, if applicable 11. Details regarding the development costs, including land cost, if developed within the past three

years 12. Three-year and YTD property income and expenses 13. Current year property income and expense budget 14. Detailed occupancy report for the past three years and current YTD 15. Expense reimbursement schedule on a tenant-by-tenant basis, including base-year amounts 16. Complete copies or abstracts of all lease agreements and a current rent roll 17. Details regarding the lease rates/terms and marketing activity for any vacant suites 18. Details regarding any pending changes to the rent roll or pertinent information regarding the

current/future status of the tenants 19. Details regarding any tenant improvement allowances and free rent provided for all leases

pending or signed over the prior 12 months 20. Details regarding capital expenditures made within the last 12 months, or scheduled for the next

12 months 21. Any previous market/demand studies or appraisals 22. Name and telephone number of property contact for physical inspection and additional

information needed during the appraisal process 23. Any other information that might be helpful in valuing this property

Addenda

Addendum B

IMPROVED SALE DATA SHEETS

Sale

Residential - Multi-unit Walk-up

No. 1

Property Name Lake Street Apartments

Address 35-50 Lake Street

Warwick, RI 02886

United States

Government Tax Agency Providence

Govt./Tax ID WARW-000348-000586-000000

Unit Mix Detail

Rate Timeframe

Monthly

Unit Type

No.

% Size (sf)

Rent

Rent / sf

1 BR/ 1 BA 3 14% 700 $835 $1.19

2 BR/ 1 BA 18 86% 800 $985 $1.23

Totals/Avg

21 $964 $1.23

Improvements

Land Area 1.377 ac Status Existing

Net Rentable Area (NRA) 16,500 sf Year Built 1990

Total # of Units 21 Unit Year Renovated N/A

Average Unit Size 786 sf Condition Average

Floor Count 3 Exterior Finish Brick

Property Features Surface Parking

Project Amenities Laundry Facility

Unit Amenities Refrigerator

Sale Summary

Recorded Buyer Lake Street 21 LLC Marketing Time 5 Month(s)

True Buyer John Arruda Buyer Type Other

Recorded Seller P&P Realty Trust Seller Type Corporation

True Seller New England Real Estate Partners Primary Verification Broker

Interest Transferred Fee Simple/Freehold Type Sale

Current Use Multi-Family Date 3/31/2017

Proposed Use None Sale Price $1,550,000

Listing Broker Northeast Private Client Group Financing Market Rate Financing

Selling Broker No broker on deal Cash Equivalent $1,550,000

Doc # N/A Capital Adjustment $0

Adjusted Price $1,550,000

Transaction Summary plus Five-Year CBRE View History

Transaction Date Transaction Type Buyer Seller Price Cash Equivalent

Price/unit and /sf

03/2017 Sale Lake Street 21 LLC P&P Realty Trust $1,550,000 $73,810 / $93.94

Sale

Residential - Multi-unit Walk-up

No. 1

Units of Comparison

Static Analysis Method Other (see comments) Eff Gross Inc Mult (EGIM) 6.63

Buyer's Primary Analysis Other Op Exp Ratio (OER) 43.66%

Net Initial Yield/Cap. Rate 8.50% Adjusted Price / sf $93.94

Projected IRR N/A Adjusted Price / Unit $73,810

Actual Occupancy at Sale 100%

Financial

Revenue Type

Other See

Comments

Period Ending N/A

Source N/A

Price $1,550,000

Potential Gross Income $233,865

Economic Occupancy 100%

Economic Loss $0

Effective Gross Income $233,865

Expenses $102,111

Net Operating Income $131,754

NOI / sf $7.99

NOI / Unit $6,274

EGIM 6.63

OER 43.66%

Net Initial Yield/Cap. Rate 8.50%

Map & Comments

The comparable is located at 35-50 Lake Street in Warwick, Rhode Island. The property consists of two

separate sites. 35 Lake Street consists of an approximately 10,752 square foot of gross living area (GLA),

3-story apartment building, which is located on a 35,000 square foot site. 50 Lake Street consists of an

approximately 8,488 square foot of gross living area (GLA), 3-story apartment building, which is located

on a 25,000 square foot site. Cumulatively, the properties contain 21 units and 16,500 square feet of

Net Rentable Area (NRA). The improvements are in overall average condition. The property sold in

March 2017 for a total consideration of $1,550,000 or $74,048 per unit. The sale yields an 8.50%

capitalization rate.

Sale

Residential - Multi-unit Garden

No. 2

Property Name 367 Woonasquatucket Avenue

Address 367 Woonasquatucket Avenue

North Providence, RI 02911

United States


Govt./Tax ID N/A

Unit Mix Detail

Rate Timeframe

Monthly

Unit Type

No.

% Size (sf)

Rent

Rent / sf

1 BR/ 1 BA 7 30% N/A N/A

2 BR/ 1 BA 16 70% N/A N/A

Totals/Avg

23 $0 N/A

Improvements




Average Unit Size 1,048 sf Condition Average





Sale Summary

Recorded Buyer C & R Properties LLC Marketing Time 3 Month(s)

True Buyer SMG Inc Buyer Type Developer

Recorded Seller St. Augustine Management LLC Seller Type Other

True Seller Ossama Labib Primary Verification CoStar




Listing Broker New England Apartment Group LLC Financing Not Available


Doc # Book 03170 Page 156 Capital Adjustment $0




Price/unit and /sf

07/2017 Sale C & R Properties LLC St. Augustine

Management LLC $1,800,000 $78,261 / $74.68

11/2015 Sale Saint Augustine Mgmt

LLC Cassisi Group LLC $1,750,000 $72,917 / $72.61

Sale


No. 2

Units of Comparison

Static Analysis Method Pro Forma (Stabilized) Eff Gross Inc Mult (EGIM) N/A

Buyer's Primary Analysis Owner/Occupier Op Exp Ratio (OER) N/A



Actual Occupancy at Sale N/A

Map & Comments

This comparable represents the sale of a twenty-three unit brick multi-family property located in North

Providence. The property consists of a single three story structure and includes seven (7) one bedrooms

and sixteen (16) two bedroom apartments. The property sold to a local investor in July 2017 for a total

consideration of $1,800,000 or $78,261 per unit. The capitalization rate is based on the buyer's pro-

forma.

Sale

Residential - Multi-unit Mid/High Rise

No. 3

Property Name Laurel Ridge Apartments

Address 555 Worcester Street

Southbridge, MA 01550

United States

Government Tax Agency Worcester

Govt./Tax ID N/A

Unit Mix Detail

Rate Timeframe

N/A

Unit Type

No.

% Size (sf)

Rent

Rent / sf

1 BR 1 bath 3 5% 510 $675 $1.32

Studio 5 9% 550 $700 $1.27

1 BR 1 bath 28 48% 870 $875 $1.01

2 BR 1 bath 22 38% 1,060 $1,000 $0.94

Totals/Avg

58 $897 $1.00

Improvements




Average Unit Size 971 sf Condition N/A




Unit Amenities Dishwasher, Refrigerator

Sale Summary

Recorded Buyer 555 Worcester Street LLC Marketing Time N/A

True Buyer Granite Realty Trust Buyer Type Private Investor

Recorded Seller Laurel Ridge Apartments Seller Type REIT

True Seller Gajewski Trust Primary Verification CoStar


Current Use Multi-family Date 2/1/2017


Listing Broker Marcus & Millichap Inc Financing Market Rate Financing

Selling Broker Marcus & Millichap Inc Cash Equivalent $5,450,000

Doc # 56695-001 Capital Adjustment $0




Price/unit and /sf

02/2017 Sale 555 Worcester Street LLC Laurel Ridge Apartments $5,450,000 $93,966 / $96.74

Sale


No. 3

Units of Comparison

Static Analysis Method Pro Forma (Stabilized) Eff Gross Inc Mult (EGIM) 8.84

Buyer's Primary Analysis Static Capitalization Analysis Op Exp Ratio (OER) 40.11%




Financial

Revenue Type

Pro Forma

Stabilized

Period Ending 1/1/2017

Source Buyer

Price $5,450,000

Potential Gross Income $648,600

Economic Occupancy 95%

Economic Loss $32,430


Expenses $247,174


NOI / sf $6.55

NOI / Unit $6,362

EGIM 8.84

OER 40.11%


Map & Comments

The comparable is a 58-unit multi-family mid-rise property located at 555 Worcester Street in

Southbridge, Worcester County, Massachusetts. The property consists of a single, four-story apartment

building with a brick exterior. The improvements were constructed in 1988 and are situated on a 5.00-

acre site. The unit mix is 100% market rate and consists of a mixture of studio, one bedroom and two

bedroom apartments with an average unit size of 971 square feet. The community amenities include an

on-site management office, ample off-street parking, laundry facilities, a community room, a fitness

center and an outdoor swimming pool. The capitalization rate is based on the buyer's year one pro-forma

income.

Sale

Residential - Single-Family Residence

No. 4

Property Name N/A

Address 400 Angell Street

Providence, RI 02906

United States


Govt./Tax ID N/A

Unit Mix Detail

Rate Timeframe

N/A

Unit Type

No.

% Size

Rent

Rent / Area

No information recorded

Totals/Avg

N/A N/A N/A

Improvements



Total # of Units 7 Bed Year Renovated 2000


Floor Count 3 Exterior Finish Wood

Property Features Attached Garages, Surface Parking

Project Amenities N/A

Unit Amenities N/A

Sale Summary

Recorded Buyer N/A Marketing Time N/A

True Buyer Walter Bronhard Buyer Type Private Investor

Recorded Seller Anne K Tunderman Seller Type Private Investor

True Seller N/A Primary Verification Broker / Buyer


Current Use Residential Date 4/1/2017

Proposed Use N/A Sale Price $850,000

Listing Broker Peter Scotti & Assoc Financing Market Rate Financing

Selling Broker N/A Cash Equivalent $850,000

Doc # N/A Capital Adjustment $25,000

Adjusted Price $875,000



Price/unit and /sf

04/2017 Sale N/A Anne K Tunderman $850,000 $121,429 / $200.00

Sale

Residential - Single-Family Residence

No. 4

Units of Comparison

Static Analysis Method Pro Forma (Stabilized) Eff Gross Inc Mult (EGIM) 13.02

Buyer's Primary Analysis Static Capitalization Analysis Op Exp Ratio (OER) 33.60%


Projected IRR N/A Adjusted Price / Bed $125,000


Financial

Revenue Type

Pro Forma

Stabilized

Period Ending N/A

Source N/A

Price $875,000

Potential Gross Income N/A

Economic Occupancy N/A

Economic Loss N/A


Expenses $22,579


NOI / sf $10.50

NOI / Bed $6,374

EGIM 13.02

OER 33.60%


Map & Comments

The comparable represents a residential property located at 400 Angell Street in Providence, Rhode

Island. The property consists of a single, three-story single-family building with six bedrooms and six

bathrooms. The improvements were constructed in 1899, appears to have been renovated around 2000

and are situated on a .160-acre site. The property went under contract in April 2017 to be acquired for

$850,000 ($200 per square foot). Upon closing the purchase plans to spend $25,000 adding an

additional bedroom and leasing the property as a seven bedroom student housing property. The pro-

forma capitalization rate on the transaction was 5.10% based on forecast rents of approximately $800

per month per bedroom.

Sale


No. 5

Property Name County Green Apartments

Address 2050-2100 County Street

Attleboro, MA 02703

United States

Government Tax Agency Bristol

Govt./Tax ID ATTL-000027-000000-000187

Unit Mix Detail

Rate Timeframe

Monthly

Unit Type

No.

% Size (sf)

Rent

Rent / sf

Studio 36 100% 979 N/A N/A

Totals/Avg

36 $0 $0.00

Improvements




Average Unit Size 980 sf Condition Good



Project Amenities N/A


Sale Summary

Recorded Buyer Scotia Middlesex LLC Marketing Time N/A

True Buyer Thomas P Steeves Buyer Type Other

Recorded Seller Ohlson Stern Management LLC Seller Type Developer

True Seller Ohlson Stern Management LLC Primary Verification CoStar




Listing Broker United Multi Family Corporation Financing Not Available

Selling Broker N/A Cash Equivalent $4,300,000

Doc # Book 23873 Page 046 Capital Adjustment $0




Price/unit and /sf

07/2017 Sale Scotia Middlesex LLC Ohlson Stern

Management LLC $4,300,000 $119,444 / $121.94

Sale


No. 5

Units of Comparison

Static Analysis Method Trailing Actuals Eff Gross Inc Mult (EGIM) N/A

Buyer's Primary Analysis Other Op Exp Ratio (OER) N/A




Financial

Revenue Type

Trailing Actuals

Period Ending N/A

Source Other(See

Comments)

Price $4,300,000

Potential Gross Income N/A

Economic Occupancy N/A

Economic Loss N/A

Effective Gross Income N/A

Expenses N/A


NOI / sf $6.90

NOI / Unit $6,761

EGIM N/A

OER N/A


Map & Comments

The apartments located at Attleboro, MA are comprised of 36 units (30-two bedroom, 6-one bedroom)

totaling 35,262 rentable square feet in three 12 unit buildings built in 1987. Situated on a 1.83 acre site,

there are 72 off street parking spaces. The current debt that is in place MUST be assumed and is through

Arbor Commercial Mortgage. The capitalization rate is based on the actual income in-place at the time

of the sale and the trailing 12 months expense.

Sale


No. 6

Property Name Executive House

Address 292 Market Street

Rockland, MA 02370

United States

Government Tax Agency Plymouth

Govt./Tax ID ROCK-000052-000000-000004

Unit Mix Detail

Rate Timeframe

Monthly

Unit Type

No.

% Size (sf)

Rent

Rent / sf

1 BR/ 1 BA 18 45% 666 $1,300 $1.95

2 BR/ 1 BA 22 55% 862 $1,500 $1.74

Totals/Avg

40 $1,410 $1.82

Improvements






Property Features Flat Roofs



Sale Summary

Recorded Buyer Rockland Executive House LLC Marketing Time N/A

True Buyer Universal Properties Buyer Type Developer

Recorded Seller 1144 Properties LLC Seller Type Corporation

True Seller F.P. Giglio Enterprises Primary Verification CoStar; Deed

Interest Transferred Leased Fee Type Sale



Listing Broker No broker on deal Financing Market Rate Financing


Doc # Book: 49181, Page: 075 Capital Adjustment $0




Price/unit and /sf

11/2017 Sale Rockland Executive

House LLC 1144 Properties LLC $5,375,000 $134,375 / $173.39

Sale


No. 6

Units of Comparison

Static Analysis Method Trailing Actuals Eff Gross Inc Mult (EGIM) N/A

Buyer's Primary Analysis Static and Yield Capitalization Analyses Op Exp Ratio (OER) N/A

Net Initial Yield/Cap. Rate N/A Adjusted Price / sf $173.39



Financial

No information recorded

Map & Comments

This comparable represents the sale of a 40 unit multi-family property located just off of Route 139 in

Rockland, Massachusetts. The property was built in 1973 and consists of a single, four story apartment

building. The unit mix consists of eighteen (18) one bedroom apartments and twenty-two (22) two

bedroom apartments with an average unit size of 775 square feet. The property sold in November 2017

for a total consideration of $5,375,000 or $134,375 per unit. A capitalization rate was not available to

the appraisers.

Addenda

Addendum C

RENT COMPARABLE DATA SHEETS

Lease Comps SummaryLease Comps Report

Property Name - Address Rating SF Leased Floor Sign Date Rent Rent Type

Lease

Type

Rents

-1 103 Newport Ave1,444 1st 2/28/2018 $15.00/nnn AskingNew

-2 135 Gano St1,131 1st 9/12/2017 $21.22/mg EffectiveNew

-3 234 East Ave865 1st 3/6/2017 $15.00/mg EffectiveNew

-4 1452 Mineral Spring Ave144 1st 4/1/2016 $20.83/nnn EffectiveNew

7/25/2018Copyrighted report licensed to CBRE - New England - 697162.

Page 2

http://gateway.costar.com/Gateway/Redir/RedirectToProduct.aspx?productId=PPW&redirUrl=%2Fredir%2Fdefault.aspx%3Feid%3D1079523%26ProductMode%3DProperty%26SelectedTab%3Dlease%26external%3D1




Lease Comps DetailsLease Comps Report

1 103 Newport AvePawtucket, RI 02861 - Pawtucket Submarket

TENANT

Tenant Name: Ministerio Internacional Monte Familiar de Jehova

RENTS

Asking Rent: $15.00/NNN

PROPERTY EXPENSES

Taxes: $4.13/SF (2017)

LEASE

SF Leased: 1,444 SF

Sign Date: Feb 2018

Space Use: Retail

Lease Type: Direct

Floor: 1st Floor

Suite: 2

LEASE TERM

Start Date: Mar 2018

Expiration Date: Mar 2023

Lease Term: 5 Years

TIME VACANT

Date Vacated: Dec 2017

Date Occupied: Mar 2018

Months Vacant: 3 Months

TIME ON MARKET

Date On Market: Nov 2017

Date Off Market: Mar 2018

Months on Market: 3 Months

LEASING REP

New World Realty

178 Park St

North Attleboro, MA 02760-1239

Bill Hermistone (508) 699-0608

PROPERTY

Rentable Area: 3,600 SF

Stories: 1

Floor Size: 3,600 SF

Vacancy at Lease: 0.0%

Land Acres: 0.46

Property Type: Retail

Status: Built 1965

Tenancy: Multi

Class: C

Construction: Masonry

Parking: 50 free Surface Spa…

MARKET AT LEASE

Vacancy Rates 2018 Q1 YOY

0.9%

0.0%

0.0%Current Building 0.0%

Submarket 1-3 Star

Market Overall 3.9%

5.4%

Same Store Asking Rent/SF 2018 Q1 YOY

1.6%

2.8%

18.5%Current Building $15.00

Submarket 1-3 Star

Market Overall $15.61

$14.10

Submarket Leasing Activity 2018 Q1 YOY

12.0

162.2%12 Mo. Leased SF 28,186

Months On Market 6.6


Page 3



2 135 Gano StProvidence, RI 02906 - Providence Submarket

TENANT

Tenant Name: Harbinger Entertainment LLC

Industry: Business Services

RENTS

Asking Rent: $21.22/MG

Starting Rent: $21.22/MG

Effective Rent: $21.22/MG

CONCESSIONS AND BUILDOUT

Asking Discount: 0.00%

Mo. Free Rents: 0 Months

LEASE

SF Leased: 1,131 SF

Sign Date: Sep 2017

Space Use: Office/Retail

Lease Type: Direct

Floor: 1st Floor

LEASE TERM

Start Date: Oct 2017

Expiration Date: Sep 2018

Lease Term: 1 Year

TIME VACANT

Date Occupied: Oct 2017

TIME ON MARKET

Date On Market: May 2017

Date Off Market: Sep 2017


LEASING REP

Albert Realtors Commercial Division

1050 Reservoir Ave

Cranston, RI 02910

Albert Scaralia (401) 944-8008 X712

PROPERTY


Stories: 2



Land Acres: 0.10


Status: Built 1950

Tenancy: Multi

Class: C

Construction: Wood Frame

Parking: 10 free Surface Spa…

MARKET AT LEASE


0.4%

0.3%


Submarket 1-2 Star

Market Overall 4.0%

2.0%


1.2%

0.8%

Current Building -

Submarket 1-2 Star


$16.22

-


1.5

59.1%12 Mo. Leased SF 125,887



Page 4



3 234 East AvePawtucket, RI 02860 - Pawtucket Submarket

RENTS

Asking Rent: $15.26/MG

Starting Rent: $15.00/MG

Effective Rent: $15.00/MG


Asking Discount: 1.70%

PROPERTY EXPENSES

Taxes: $0.59/SF (2017)

LEASE

SF Leased: 865 SF

Sign Date: Mar 2017

Space Use: Retail

Lease Type: Direct

Floor: 1st Floor

LEASE TERM

Start Date: Apr 2017


Lease Term: 3 Years

TIME VACANT

Date Vacated: Dec 2016

Date Occupied: Apr 2017

Months Vacant: 4 Months

TIME ON MARKET

Date On Market: Dec 2016

Date Off Market: Mar 2017


LEASING REP

Ferdie's Key Shop

234 East Ave

Pawtucket, RI 02860-3802

Bob Parmen (401) 725-7365

PROPERTY


Stories: 1



Land Acres: 0.07


Status: Built 1920

Tenancy: Multi

Class: C

Construction: Masonry

Parking: 6 free Surface Spac…

MARKET AT LEASE


1.3%

1.5%


Submarket 1-3 Star

Market Overall 3.8%

4.5%


1.3%

0.7%

Current Building -

Submarket 1-3 Star


$13.88

-


8.4

46.8%12 Mo. Leased SF 29,810



Page 5



4 1452 Mineral Spring AveNorth Providence, RI 02904 - North Providence Submarket

RENTS

Asking Rent: $13.75/NNN

Starting Rent: $20.83/NNN

Effective Rent: $20.83/NNN


Asking Discount: -51.49%

Buildout Status: Full Build-Out

PROPERTY EXPENSES

Taxes: $1.60/SF (2017)

LEASE

SF Leased: 144 SF

Sign Date: Apr 2016

Space Use: Retail

Lease Type: Direct

Floor: 1st Floor

LEASE TERM

Start Date: Apr 2016


Lease Term: 3 Years

TIME VACANT

Date Occupied: Apr 2016

TIME ON MARKET

Date On Market: Nov 2015

Date Off Market: Apr 2016


LEASING REP

Lexington Realty, Inc

1530 Mineral Spring Ave

North Providence, RI 02904

John Luca (401) 556-0884

PROPERTY


Stories: 2



Land Acres: 0.27


Status: Built 1920

Tenancy: Multi

Class: C

Construction: Wood Frame

Parking: 6 free Surface Spac…

MARKET AT LEASE


1.0%

0.8%


Submarket 1-3 Star

Market Overall 4.9%

4.6%


1.3%

1.6%

Current Building -

Submarket 1-3 Star


$14.02

-


8.7

236.3%12 Mo. Leased SF 24,592



Page 6


Comparable


No. 1

Property Name Parkview Exchange

Address 180 Parkview Drive

Pawtucket, RI 02861

United States


Govt./Tax ID N/A

Unit Mix Detail

Rate Timeframe

Monthly

Unit Type

No.

% Size (sf)

Rent

Rent / sf

Studio 14 7% 560 $950 $1.70

1 BR/ 1 BA 40 19% 650 $1,100 $1.69

1 BR/ 1 BA 40 19% 700 $1,155 $1.65

2 BR/ 1 BA 33 16% 820 $1,235 $1.51

2 BR/ 1 BA 34 16% 900 $1,325 $1.47

3 BR/ 2 BA 15 7% 1,100 $1,545 $1.40

2 BR/ 2 BA + Den 35 17% 1,150 $1,400 $1.22

Totals/Avg

211 $1,239 $1.48

Improvements






Property Features Flat Roofs, On-Site Management, Surface Parking

Project Amenities Business Center, Clubhouse, Fitness Center, Laundry Facility, Pool, Tennis Court

Unit Amenities Dishwasher, In-Unit Storage, Refrigerator

Rental Survey

Occupancy 99%

Utilities Included in Rent heat, hot water, water, sewer, and

trash removal

Lease Term 12 Mo(s). Rent Premiums None

Tenant Profile Mixed Concessions None

Survey Date 07/2018 Owner Forest Properties

Survey Notes N/A Management Forest Properties

Comparable


No. 1

Map & Comments

This comparable rental is located at 180 Parkview Drive in Pawtucket, Rhode Island. The Parkview is

located in a residential setting adjacent to the Slater Memorial Park within close proximity to the

Massachusetts state border. The property features excellent access to local Route 1 (Newport Avenue)

and Interstate 95. This property consists of eight three-story garden-style apartment buildings constructed

between 1975 and 1977 featuring brick exterior. Unit amenities include fully-applianced kitchens with

microwaves and disposals, air-conditioning, walk-in closets, and wall-to-wall carpeting. Community

amenities include a pool, fitness center, tennis court, laundry facilities, clubhouse, business center,

surface parking and on-site management. Heat, hot water, water, sewer and trash removal are included

with the rent, the tenant is responsible for all other utilities.

Comparable

Residential - Multi-unit Lofts

No. 2

Property Name Slater Cotton Mill

Address 75 South Union Street

Pawtucket, RI 02861

United States


Govt./Tax ID N/A

Unit Mix Detail

Rate Timeframe

Monthly

Unit Type

No.

% Size (sf)

Rent

Rent / sf

Studio 31 25% 712 $1,165 $1.64

1 BR/ 1 BA 10 8% 732 $1,370 $1.87

1 BR/ 1 BA + Den 16 13% 844 $1,470 $1.74

2 BR/ 2 BA 41 33% 1,000 $1,400 $1.40

1 BR/ 1 BA + Loft 5 4% 1,006 $1,575 $1.57

2 BR/ 2 BA - Deluxe 21 17% 1,375 $1,600 $1.16

Totals/Avg

124 $1,389 $1.46

Improvements



Total # of Units 124 Unit Year Renovated 2009

Average Unit Size 995 sf Condition Good

Floor Count N/A Exterior Finish Brick

Property Features Flat Roofs, Gated/Controlled Access

Project Amenities Fitness Center, Storage Units, Theater

Unit Amenities Dishwasher, In-Unit Storage, Private Patios/Balconies, Refrigerator, Washer/Dryer

Rental Survey

Occupancy 94% Utilities Included in Rent Trash

Lease Term 12 Mo(s). Rent Premiums Balconies/Views

Tenant Profile Mixed Concessions 1 month free and reduced rent on all 2

BR units

Survey Date 11/2017 Owner Nobility LLC

Survey Notes N/A Management Winn

Comparable

Residential - Multi-unit Lofts

No. 2

Map & Comments

This comparable rental property represents Slater Cotton Mill, a 124-unit multi-family property located at

75 South Union Street in Pawtucket, Rhode Island. The property was originally constructed circa 1900

and fully renovated to its current multi-family use in 2009. Unit amenities include central A/C, large

windows, maple cabinets, granite countertops, stainless steel appliances inc. dishwasher, disposal,

microwave, HW flooringin throughout, carpeting BRs, slate flooring in bathrooms, in-unit washer & dryer,

only four units with private balconies. Community amenities include sports court with basketball hoop,

community roof deck, 24-hour fitness center, resident theater room, controlled access, additional

storage, surface parking and on-site maintenance and management. The landlord pays for trash

removal, all other utilities are paid by the tenant.

Comparable


No. 3

Property Name Blackstone Valley

Address 325-331 Prospect Street

Pawtucket, RI 02860

United States


Govt./Tax ID PAWT-000000-000000-350276, PAWT-000000-000000-

350328

Unit Mix Detail

Rate Timeframe

Monthly

Unit Type

No.

% Size (sf)

Rent

Rent / sf

Studio 13 24% 450 $855 $1.90

1 BR/ 1 BA 14 25% 700 $1,015 $1.45

2 BR/ 2 BA 14 25% 800 $1,225 $1.53

3 BR/ 2 BA 14 25% 1,000 $1,405 $1.41

Totals/Avg

55 $1,130 $1.52

Improvements


Net Rentable Area (NRA) N/A Year Built 1960






Unit Amenities Dishwasher, In-Unit Storage, Refrigerator, Vaulted/Cathedral Ceilings

Rental Survey

Occupancy 100% Utilities Included in Rent Heat, hot water, water, sewer, trash



Survey Date 10/2017 Owner Blackstone Valley Portfolio Fund I, LLC

Survey Notes N/A Management Bilotti

Comparable


No. 3

Map & Comments

This comparable rental represents Blackstone Valley apartments, a 55-unit multi-family community

located at 325-331 Prospect Street in Pawtucket, Rhode Island. The property was constructed in 1960

consisting of two, three-story brick buildings housing studio, one-, two-, and three-bedroom floor plans.

Units feature refrigerators, dishwashers, disposals, air conditioning, window blinds, extra storage and

vaulted ceilings while select units feature private balconies. Community amenities include laundry

facilities, on-site/on-call maintenance, nearby public parks, and surface parking included with the rent.

Heat, hot water, water, sewer and trash removal are included with the rent.

Comparable


No. 4

Property Name Lofts 125

Address 125 Goff Avenue

Pawtucket, RI 02860

United States


Govt./Tax ID PAWT-000000-000000-440596

Unit Mix Detail

Rate Timeframe

Monthly

Unit Type

No.

% Size (sf)

Rent

Rent / sf

Studio 50 25% 687 $1,040 $1.51

1 BR/ 1 BA 59 30% 1,012 $1,160 $1.15

2 BR/ 1 BA 32 16% 1,250 $1,261 $1.01

2 BR/ 2 BA 28 14% 1,550 $1,615 $1.04

3 BR/ 1 BA 28 14% 1,600 $1,730 $1.08

Totals/Avg

197 $1,292 $1.14

Improvements


Net Rentable Area (NRA) N/A Year Built 2009


Average Unit Size 1,128 sf Condition Good


Property Features Gated/Controlled Access, On-Site Management, Surface Parking

Project Amenities Storage Units

Unit Amenities Dishwasher, In-Unit Storage, Refrigerator, Washer / Dryer Connections

Rental Survey

Occupancy 98% Utilities Included in Rent Heat, hot water, water, sewer, trash



Survey Date 11/2017 Owner First National Development

Survey Notes N/A Management The Lofts 125

Comparable


No. 4

Map & Comments

This comparable property is a 2009-converted mill building located at 125 Goff Avenue in Pawtucket,

Rhode Island. The property features a single, three to four-story renovated mill building housing 197

studio, one-, two- and three-bedroom loft-style units. Units feature stainless steel appliances, high

ceilings, exposed brick, washer/dryer connections, and wood cabinets. Community amenities include on-

site management, controlled access, extra storage, and on-site surface parking. The landlord pays for

heat, hot water, water, sewer and trash removal while the tenant is responsible for all other utilities.

Comparable


No. 5

Property Name The Continental

Address 1250 South Broadway

East Providence, RI 02914

United States


Govt./Tax ID N/A

Unit Mix Detail

Rate Timeframe

Monthly

Unit Type

No.

% Size (sf)

Rent

Rent / sf

Studio 3 4% 425 $675 $1.59

1 BR/ 1 BA 15 21% 550 $760 $1.38

2 BR/ 1 BA 54 75% 800 $925 $1.16

Totals/Avg

72 $880 $1.20

Improvements






Property Features Gated/Controlled Access, Surface Parking


Unit Amenities In-Unit Storage, Refrigerator

Rental Survey

Occupancy 97% Utilities Included in Rent heat, water, sewer, trash



Survey Date 07/2018 Owner N/A

Survey Notes N/A Management The Bilotti Group, Inc.

Comparable


No. 5

Map & Comments

This comparable represents the Continental located at 1250 South Broadway in East Providence, RI. The

brick exterior property offers a range of studios to two-bedroom units ranging in size from 400 to 800

square feet. Unit amenities include fully applianced kitchens, vinyl flooring in kitchen and bathrooms,

wall-to-wall carpeting in living room and bedrooms, wall-unit air conditioning, and laundry facilities.

Community amenities include surface parking, laundry facilities, controlled access and easy access to

public transit.

Comparable

Retail - Misc. Freestanding Retail

No. 1

Property Name Verizon Plaza

Address 1200 Bald Hill Road

Warwick, RI 02886

United States

Government Tax Agency Kent

Govt./Tax ID N/A

Site/Government Regulations

Acres Square feet

Land Area Net 1.030 44,867

Land Area Gross 1.030 44,867

Excess Land Area N/A N/A

Site Development Status Finished

Shape Irregular

Topography Generally Level

Utilities Connected

Maximum Floor Area N/A

Maximum FAR N/A

Actual FAR 0.31

Zoning General Business - GB

General Plan N/A

Improvements

Gross Leasable Area

(GLA) 13,900 sf

Floor Count 1

Status Existing Parking Type Open

Occupancy Type Multi-tenant Parking Ratio 3.38/1,000 sf

Year Built 1987 Condition Average

Year Renovated N/A Exterior Finish Masonry

Total Anchor Rentable

Area N/A Number of Buildings 1

Total In Line Rentable

Area N/A

Anchor N/A

Junior Anchor N/A

National N/A

Contact

Recorded Owner N/A Leasing Agent N/A

True Owner N/A Company N/A

Rental Survey

Occupancy 72% Tenant Size 1,500 - 3,000 sf

In Line Retail Occupancy 72% Lease Term 60 Mo(s).

Reimbursements NNN Annual Base Rent $15.00 per sf

Rent Changes/Steps 10% / 5 yrs Free Rent 0 - 3 Mo(s).

Survey Date 06/2017 TI Allowance $0.00 - $10.00 per sf

Survey Notes N/A Reimbursement Amount $5.00 per sf

Total Oper. & Fixed Exp. $6.00 per sf

Comparable

Retail - Misc. Freestanding Retail

No. 1

Actual Leases

Tenant Name Tenancy

Use Type Size (sf) Term

(Mo.) Type of

Lease Start Date

Annual

Base

Rate per

sf Reimbs. Rent Changes /

Steps

Free

Rent (Mo.)

TI

Allowance

per sf Eco Dry Cleaners Retail 1,250 60 New 8/1/2017 $15.00 NNN 10% at Option 3 $0.00

Asian Restaurant Retail 2,150 60 New 8/1/2017 $15.00 NNN 10% at Option 0 $0.00

Love Nail & Spa Retail 2,000 60 New 4/1/2016 $20.00 Gross 10% at Option 0 $0.00

Map & Comments

The comparable is a 13,900-square foot retail property located at 1200 Bald Hill Road in Warwick,

Rhode Island known as Verizon Plaza. The improvements were constructed in 1987 and are situated on a

1.03-acre site. At the time of survey the property was 47.10% occupied with two letters of intent that

would bring the overall occupancy up to 71.60% and considered to be in average overall condition. The

property is anchored by Verizon with two other tenants being Love Nail & Spa and West Paws Veterinary

Center.

RemarksGroup Showing Friday, 12/30/16 @ 4:30pm. Come tour this gorgeous apartment! Looking for a freshly updated apartment?? Well,look no further. This comfy 3 bedroom 1 bath flat features a beautifully sun drenched living room with a spacious kitchen andbedrooms. Beautiful gleaming hardwood floors. Lots of charm in this well managed apartment. Sit back and relax in your cozy newhome for the holidays! Plenty of on and off street parking close to local amenities. This apartment could be yours!! So let's get youmoved in!! Pet's are welcome with pet addendum. Must be approved by landlord.

Property InformationApprox. Living Area: 1,000 Sq. Ft. Approx.Lot Size: 6,288 Sq. Ft. Parking Spaces: 1 Off-Street, AssignedLiving Area Includes: Heating: Garage Spaces:Living Area Source: Other Air Cond: NoLiving Area Disclosures: Living Area is estimatedDisclosures: Fee to obtain credit report and background check are lessee's expense (non re-fundable). LA has interest in property.

Rental InformationFor Sale: No First Mon Rent Reqd: Yes Last Mon Rent Reqd: NoAssociation: No Security Deposit Reqd: Yes/$1,075 Lease Terms:Date Available: 12/13/2016 Rent Terms: Lease Term of Rental (months): 12Date Avail.Note: List Bkge. Fee Req. from Tenant: No Insurance Reqd: YesReferences Reqd: Yes Smoking Allowed: NoPets Allowed: Yes w/ Restrictions - Other (See Remarks)

Room Levels, Dimensions and FeaturesRoom Level Size Features

FeaturesAppliances: Range, RefrigeratorArea Amenities: Public Transportation, Shopping, Other (See Remarks)Association Pool: NoBasement: Yes FullBeach - Miles to:Exterior Features:Interior Bldg Feat:Rent Fee Includes: Water, Laundry Facilities, ParkingWaterfront: No

Other Property InfoLead Paint: UnknownDisclosure Declaration: NoElevator: NoFurnished: NoLaundry Features: Common, In BuildingPin #: 240668UFFI:Year Built: 1900 Source: Public RecordYear Built Description: ActualYear Round: Yes

Office/Agent InformationListing Office: Cantave Realty Group, Inc. (781) 725-2172 Ext. 305 Compensation

Listing Agent: Nicholson Cantave (781) 725-2172 Cooperating Compensation: $225

Team Member(s):Sale Office: Cantave Realty Group, Inc. (781) 725-2172 Ext. 305

Sale Agent: Nicholson Cantave (781) 725-2172

Listing Agreement Type: Exclusive Right to RentEntry Only: NoShowing: Other (See Special Showing Instructions)Special Showing Instructions: Please email: [email protected] to request a showing, do not email through MLS.

Firm RemarksApply Here: https://cantaverealtygroupinc1.managebuilding.com/Resident/public/rentals/22266

Market InformationListing Date: 12/13/2016 Listing Market Time: MLS# has been on for 39 day(s)Days on Market: Property has been on the market for a total of 39 day(s) Office Market Time: Office has listed this property for 39 day(s)Expiration Date: Cash Paid for Upgrades:Original Price: $1,075 Seller Concessions at Closing:Off Market Date: 1/21/2017Rental Date: 2/17/2017Sale Price: $1,075

The information in this listing was gathered from third party sources including the seller and public records. MLS Property Information Network and its subscribersdisclaim any and all representations or warranties as to the accuracy of this information. Content ©2018 MLS Property Information Network, Inc.

MLS # 72101362 - RentedRental - Apartment124 Johnson St - Unit 2Pawtucket, RI 02860-4323Providence County

Rent: $1,025Rented Price: $1,075

Unit Level: 2 Total Rooms: 5Grade School: Bedrooms: 3Middle School: Bathrooms: 1f 0hHigh School: Master Bath:Outdoor Space Available: Fireplaces: 0Directions: S Bend St to Johson St. Located close to McCoy Stadium!

Market History for 124 Johnson St U:2, Pawtucket, RI 02860-4323MLS # Date DOM DTO Price

72101362 12/13/2016 Listed for $1,075 Nicholson Cantave $1,075

1/9/2017 Price Changed to: $1,025 Nicholson Cantave $1,025

UAG 1/21/2017 Status Changed to: Under Agreement Nicholson Cantave

RNT 2/24/2017 Status Changed to: Rented Nicholson Cantave 39 39

Market History for Cantave Realty Group, Inc. (AC1120) 39 39 $1,075

Market History for this property 39 39 $1,075


MLS # 72101362 - Rented Rental - Apartment124 Johnson St U:2, Pawtucket, RI 02860-4323 Rental Price: $1,075


MLS # 72101362 - Rented Rental - Apartment124 Johnson St U:2, Pawtucket, RI 02860-4323 Rental Price: $1,075


Addenda

Addendum D

OPERATING DATA

Rent Roll As of 7/18/18422 Pawtucket Avenue, 134 Harrison Street, & 635 Main Street, Pawtucket, RI

422 Pawtucket AveCommercial 1 N/A 630$ 7,560$ Commercial 2 N/A 630$ 7,560$

1 2/1 955$ 11,460$ 2 2/1 840$ 10,080$ 3 2/1 980$ 11,760$ 4 2/1 1,020$ 12,240$ 5 2/1 1,200$ 14,400$ 6 1/1 925$ 11,100$ 7 2/1 1,120$ 13,440$ 8 1/1 920$ 11,040$ 9 2/1 1,250$ 15,000$

10 1/1 875$ 10,500$ 11 2/1 825$ 9,900$

134 Harrison St1 2/1 800$ 9,600$ 2 2/1 750$ 9,000$ 3 2/1 800$ 9,600$ 4 2/1 800$ 9,600$ 5 2/1 800$ 9,600$ 6 2/1 850$ 10,200$ 7 2/1 800$ 9,600$ 8 2/1 850$ 10,200$ 9 2/1 800$ 9,600$

10 2/1 860$ 10,320$ 11 2/1 800$ 9,600$ 12 2/1 850$ 10,200$ 13 2/1 850$ 10,200$ 14 2/1 800$ 9,600$ 15 2/1 750$ 9,000$

635 Main St1 3/1 1,220$ 14,640$ 2 3/1 1,150$ 13,800$ 3 4/1 1,300$ 15,600$

TOTALS 28,000$ 336,000$

ApartmentUnit Type

Current Rent

GPR

418-422 Pawtucket Ave2015 - Renovation of common areas and units 100,000$ 2016 - Full rehab of exterior and interior including roof, windows, siding, and all units 350,000$

635 Main Street & 134-136 Harrison Street2016 - Boiler repair, Harrison Street roof, unit renovations 120,000$ 2017 - Unit renovations 200,000$

770,000$

Capital ItemTotalCost

422 Pawtucket Avenue, 134 Harrison Street, & 635 Main Street, Pawtucket, RI

Number of Units: 31 31 31

IncomeGross Potential Rent $303,173 815 $105,588 852 $336,000 903 Vacancy - 0.00% - 0.00% (16,800) 5.00%Net Rental Income $303,173 815 $105,588 284 $319,200 858

Laundry Income 5,279 14 1,725 14 5,300 14

Effective Gross Income 308,452 829 107,313 288 324,500 872

Operating ExpensesTaxes 37,705 1,216 12,814 413 36,466 1,176Insurance 11,922 385 2,670 86 12,279 396 Electricity/Gas 15,379 496 12,152 392 15,840 511 Water / Sewer 17,615 568 5,998 193 18,144 585 Repairs & Maintenance 16,624 536 6,556 211 24,800 800 Management (% of EGI) 15,159 4.91% 5,279 4.92% 9,735 3.00%Administrative - - - - 3,100 100 Replacement Reserves - - - - 7,750 250 Total 114,404 3,690 45,470 1,467 128,114 4,133Net Operating Income $194,048 522 $61,842 166 $196,386 528

ProFormaPer Unit

Cash Flow 2017Per Unit

Per Unit

YTD April 2018

TAX RATE: RESD $20.13 CMRE $33.21a08RA ETT A TOTAL AMOUNT OF STATE AID $96,157,0562018REA ESTTE AX _ ___STATE AID LOWERS TAX RATE BY: RESD $18.19CMRE $30.01

MAKE CHECKS PAYABLE TO:

PawtcketCITY OF PAWTUCKET

-JOI TH EVOUTIN -MAKE PAYMENTS TO:RE: 185700 JONTEEOUINCITY OF PAWTUCKET

CURRNT ONERP.O. BOX 9709CURRNT ONERPROV. RI 02940-9709

COUGAR CAPITAL 11 LLCP0 BOX 55071 SUITE 41505BOSTON, MA 02205 PLEASE USE ACCOUNT NUMBER WHEN PAVING BILL

YOU MAY ALSO PAY YOUR BILL ONLINE AT:WWW.PAWTUCKETRI.COM

ACCOUNT#U 185700 REAL ESTATE TAXES BASED ON ASSESSMENT DATE OF DEC. 31, 2017_______________________________________________________________ PLEASE PRESENT ENTIRE BILL WHEN MAKING

riy~ PAYMENTS IN PERSON. FULL PAYMENT IS DUE

64 0848 422 PAWTUCKET RESD BLDG 445,300 14,788.41 ON OR BEFORE JULY 16, 2018 TAXES MAY BEAVE RESD LAND 112,900 3,749.41 PAID IN QUARTERLY INSTALLMENTS ON JULY 16,

TOTAL RESIDENTIA 558,200 11,236.57 2018, OCTOBER 15, 2018, JANUARY 15, 2019

AND APRIL 15, 2019. TAXES NOT PAID BY THEDUE DATE ARE DELINQUENT AND WILL CARRY

FULL PAYM ENT COUPON INTEREST CHARGE FROM JULY 17,2018 ON THE

RESC SCOOL $608 OHER $1.05CURRENT UNPAID BALANCE AT THE RATE OF

OMNE: SCHOOL: $10.04 OTHER: $23.17 13% ANNUALLY. INTEREST WILL BE ASSESSED- ON OCTOBER 16, 2018, JANUARY 16,2019 AND

IF PAYING BILL IN FULL, PLEASE INCLUDETHIS STUB WITH YOUR CHECK TOTAL 11,236.57 APRIL 16, 2019. FAILURE TO PAY IN QUARTERLY

FULL PAYMENT IS DUE IF ANNUAL TAX DUE IS $99.99 AND UNDER INSTALLMENTS WILL RESULT IN FULL PAYMENTDUE. R.I.G.L. 44-5-8

180001857 000 40 0 011236 5770

2018 CITY OF PAWTUCKET, RI Cleco's2 1 CITY OF PAWTUCKET, RI Cleco'

QUARTERLY 4PAYMENT Stub QUARTERLY 3 PAYMENT I Stub

MUST BE PAID ON OR BEFORE APRIL 15, 2019 MUST BE PAID ON OR BEFORE JANUARY 15, 2019

185700 422 PAWTUCKET AVE 185700 1422 PAWTUCKET AVE

PLAT: 64 LOT: 0848 PLAT: 64 LOT: 0848

COUGAR CAPITAL 11 LLC 12,809.15 J ICOUGAR CAPITAL 11 LLC 2,809.14

150001857000401J0025091502 180001857000400J0028091437

CITY OF PAWTUCKET, RI CITY OF PAWTUCKET, RI 12018 Collector's 2018 Collector's

QUARTERLY 2 PAYMENT Stub QUARTERLY 1 PAYMENT I Stub

PLEASE USE FULL PAYMENT COUPON IFAMOUNT DUE IS $99.99 OR LESS

MUST BE PAID ON OR BEFORE OCTOBER 15, 2018 MUST BE PAID ON OR BEFORE JULY 16, 2018

6mznui!L= min IS flmT IWEIE2

LOT:0 422 PAWTUCKET AVE 185700 422 PAWTUCKET AVE

PLAT: 64 LT048PEAT: 64 LOT: 0848

I[= dalim4IA1hCOUGAR CAPITAL 11 ILL 2,809.14 ICOUGAR CAPITAL 11 LLC 2,809.14

1800018570004000028091437 1800018570004000028091437

VALUE EXEMPTIONS AVAILABLE

For Information on all exemptions and qualifications for exemptions, please check the webslte atwww.pawtucketrl.com, or contact the Tax Assessor's Office at (401) 728-0500.

Qualified Veteran To each person who served in the military or naval service of the United States, in any war or conflict listed In 44-3-4, as amended,

of the General Laws of the State of Rhode Island.

Unmarried widow of Qualified veteran

Gold Star Parents (one only)

Total service-connected veteran (100% disabled)

Certified Blind Residents

Handicapped Exemptions Must be under 65 years of age and own and occupy real estate In the City of Pawtucket. (Please see Elderly Exemption)

Elderly Exemption 65 years + (Real Estate Only)

Prisoner of War

Total service-connected disabled veteran Who lives in *specially adapted housing*

Specially adapted autos for handicapped (50% off up to $10,000)

Real estate that Is Individually listed or a Contributing structure in a National Register of Historic Places and is listed on the City of Pawtucket's local

historic district as defined in the City Ordinance Chapter 2726 Section 363-59 as amended. Must be Owner Occupied residential property.

* Exemptions on motor vehicles are determined 2,000

as prescribed by R.I.G.L. 44-34.1-1 regarding the phase out of motor vehicle taxes or as approved by the state

R.l.G.L. 44.3.3 (16) Property Tax Relief

R.I.G.L. 44.5.13.2.5 Exemption for residential improvements. Details and application available In the Tax Assessor's Office.

PAYMENT INFORMATION

If this tax is paid in four (4) installments, the first shall be payable not later than July 16, 2018, the second not later than October 15, 2018, the thirdnot later than January 15, 2019, and the fourth not later than April 15, 2019. If taxes are paid in the CURRENT year. interest will be charged at therate of 13% back to the quarterly due date only. On July 17, 2018, the 2017 taxes will be considered PRIOR, and the interest of 13% will be chargedback to the original due date of the bill (July 17, 2017).

Interest on all PRIOR year taxes will be charged at the rate of 13% back to the original due date.

R.l.G.L. ? 44-5-8 Form of option for quarterly payment. - "Each installment of taxes if paid on or before the last day of each installment periodsuccessively and in order is free from any Interest charge." "if the first installment or any succeeding installment of taxes Is not paid by the last date ofthe respective installment period or periods as they occur, then the whole tax or remaining unpaid balance of the tax, as the case may be, immediate-ly becomes due and payable and carries until collected a penalty at the rate of 13 percent."

QPW~~ JO1I .--z EVOLUTIN-

Mayor Donald R. Grebien401 -728-0500, Ext. 281 DGrebien~aDawtucketri.com

Reinvestment in our SchoolsIProgress continues at our schools. The full renovation of Potter-Burns Elementary was completed and students and teachers

S are enjoying a transformed, bright and welcoming environment.-~ li 1 ' The full renovation of Nathanael Greene Elementary is moving

alon an Sc oolDeatimento wil conpltdin to gst make uChool andhaclongantmento bel compltdin tag ust.hoit and

~ school buildings a priority. We introduced an additional bonding~ proposal to continue our investment, with the assistance of

~ State reimbursement. We will be sharing additional informationwith you.

The City also extends its best wishes and congratulations to our2018 graduates.

Train StationThe Pawtucket-Central Falls Train Station project is moving forward.The Rhode Island Department of Transportation has gone out to bidfor the design and build of the train station stop. Approximately $50million in federal, state and municipal funding has already beencommitted to build the new train station and transit hub, which areexpected to be substantially completed by 2021.

This spring, Mayor Grebien joined elected officials and members ofthe community to launch plans for the new Conant Thread District. The 18@1111=J 011IJG1MIGdistrict surrounding the train station offers 4 million square feet ofpre-permitted development opportunities and another 4 million squarefeet adjacent in downtown Pawtucket. The authentically urban 150-acre district spans two Rhode Islandcities - Central Falls and Pawtucket - in the epicenter of the American Industrial Revolution. The creationof this energetic district will produce housing and job opportunities and a place for businesses to thrive. Visitwww.ConantThread.com for more information and updates.

Pawtucket VeteransThank you for your service to our country and for the sacrifices you have made so we can live freely in ourgreat city. The City makes tax exemptions available for eligible veterans. Our Senior Center hosts aliaison f romn the U.S. Department of Veterans Affairs the first Thursday of every month f rom 9 a.m. - 3 p.m.Please call 728-7582 to make an appointment. The Rhode Island Office of Veterans Affairs frequentlyhosts outreach events in the city and are always available to help. Please call them at: 921-2119.

The Pawtucket Veterans Council coordinates with the various veterans' groups within the city, works onvarious issues and organizes events such as Veterans and Memorial Day ceremonies. They are lookingto involve more Pawtucket veterans. If you are interested in joining a legion post or veterans' group,please contact our office 401-728-0500 ext. 281 or MavorsOfficeopawtucketri.com.

In addition, the Honor Flight Network that transports our heroes to Washington, D.C. to visit and reflect attheir memorials, has reached out regarding Pawtucket World War 11, Korean War, and terminally illveterans. Please reach out to us if you are a family member are eligible and interested.

aPawt ucketMayor Donald Rl. Grebien

401-728-0500 Ext. 281 DGrebienc~pawtucketri.comn

Reinversi6n en nuestras escuelasEl progreso continija en nuestras escuolas. So completd Ia renovaci6n total do Poller Burns Elementary, y las estudiantes ymaestros estdn disfrutanda dle un entomo transformado. luminoso y acogedor. La renovaci6n total de Nathanael GreeneElementary continija dentro del plaza pautado y so completarA en agosto. El Municipio y el School Department (Departamontodo Escuelas) seguirdn hacienda quo nuestras escuelas y nuestros edificios oscalaros; sean una prioridad. Presentanios unapropuesta do bonas adicianal Para seguir con nuestra inversi6n, con Ia asistencia do reintegro, del Estado. Compartiremosinformaci6n adicional con ustedes. El Municipia tambi6n oxtiendo sus felicitaciones; y mejores desoos a los graduados do Iaclase do 2018.

Estacidn doe trenesEl prayecto doe Ia Pawtucket-Central Falls Train Station (Estaci6n do Trenos Pawtucket-Central Falls) sigue avanzando. El RhodeIsland Department of Transportation (Departamenta de Transporte dle Rhode Island) ha abierto las licitacianes parsat diseii y Iacanstrucci6n do Ia parada doe Ia estacidn doe trenes. Ya so han dedicada aproximadamonte $50 rnillones do fondlos fedlerales,estatales y municipales Para constwuir la nueva estaci6n de trenes y ol nuovo centro de trAnsito. So espera quo estos est6n casicompletos Para el 2021.

Esla prnavera, el alcaldo Grebion se uni6 a funcionarios electos y mienibros doe Ia comunidad Para iniciar los planes parsat nuovodistrita do Conant Thread. El distrito que rodea a Ia estaci6n do trones ofroco 4 mullanes do pies cuadradas de aportunidados; dedesarrolla con pormiso previo y otras 4 millonos do pies cuadrados adyacentes al centro do Pawtucket. El distrito aut6nticamenteurbana dle 150 acres incluye a dos ciudlades do Rhode Island, Central Falls y Pawtucket, en el opicentra de ]a revalucin industrialestadounidenso. La creaci6n do esto vigorosa distrito gonorarA oportunidades doe viviendas y empleos y un lugar Para quo lasemprosas prosperen. Para obtener mds infarmaci6n y dabos actualizados, visits wwvw.ConantThread.com.

Veteranos de PawtucketAgradecomos a los veteranas par el servicia quo brindaron a nuestro pais y par los sacrificios quo han hecha Para quo podamosvivir con libortad en nuestra gran ciudad. El Municipio realiza exenciones impasitivas a los veteranos ologibles. Nuestro SeniorCenter (Contra para la Tercera Edad) realiza reuniones doe enlace con el U.S. Department of Veterans Affairs (Departamenta doAsuntos do Vetoranos de EE. UU.) el primer juoves de cada mes, do 9:00 a. m. a 3:00 p. m. Llame al 728-7582 Para pedir una cita.La Rhode Island Office of Veterans Affairs (Oficina doe Asuntos do Veteranos do Rhode Island) realiza eventos doe conexi6n canfrecuenciaoan Ilaciudad, y siompro estA dispuesta aayudar. Comuniquese con ol personal al 921-2119.El Pawtucket Veterans Council (Consojo doe Veteranos doe Pawtucket) trabaja en coordinaci6n con los diferentos gwupos doveteranas de Ia ciudad Para resolver problemas y organizar eventas, como Ia celebraci6n del Dia do los Veteranos de Guerra y elDIa do los Caldos en Guerra. Su personal dosea quo mds veteranos do Pawtucket participen. Si lo intoresa unirse a un contra de IaAmerican Legion (Legi6n Estadlounidense) a Un grupo do vetoranas, camunfiqueso con nuestra oficina al 401-728-0500, int. 281, oescriba a MavorsOffice~nawtucketri.cam. AdemAs, la Honor Flight Network quo transparta a nuestros hdroes a Washington D. C.para visitas y ref loxiones on los monumentos so ha comunicado con nosotros para hablar sabre los voteranos do Pawtucket quohayan prestado servicioaon la Segunda Guerra Mundial y Ia Guerra de Corea y los veteranas quo sean.

Reinvestimento nas nossas escolasO progrosso continua nas nossas escolas. A refrma complota da Potter Burns Elementary tol finalizada e alunos e professores,estdo curtindo umn arnbionte nova, alegroe a colhodor. A reforma completa da Nathanael Greene Elementary estA em curso eem dia para sor finalizada em agosto. A Cidadoe a oDepartamento Escalar cantinuarao a priorizar nossas escolas e suasinstala bes. Apresentamas uma propasta adicional Para continuer cam nosso investimonto, cam a apola do roembalsa estata].Compartilharomos niais infarmag6os. A Cidado tambom envia seus molhares votos a s parab6ns aos nassas formandos 2018.

Estagio doe tremtO projeto da estagdo de trem Pawtucket-Central Falls estA em andamento. 0 Departarno do Transportes; do Rhode Island fez aoferta para projetar a constnjir a parade da ostaga de trem. Aproximadamento 50 milhbes; do d6lares em fundos rnunicipais,estaduals e fedorais jA foram usados para canstruir a nova estagAo do trom ao acontra doe trhnsito, quo devem sor finalizadas at62021 .Nesta Primavera, a prefeito Grebien uniu-se aos representantes eleitos o as membros da comunidade Para langar as pianospara a nova Distrito doe Conant Thread. 0 distrita ao rodor da estarao do trem oferece 1200 km2 do oportunidados Paradesenvolvimenta previamonte autorizadas o outros 1200 ki 2 adjacentes no contra do Pawtucket. 0 distrito autenticamento urbanadoe 150 acres abrange dues cidades do Rhode Island - Central Falls e Pawtucket - no epicentro da Rovolugio Industrial Americana.A criaeAo deste vigoroso distrito praduzirA oportunidados do emprego a moradia 0 um lugar Pare quaoas neg6cias prosperem. Pararuels informav6es a atualizaqoes, visite www.ConantThread.com.

Veteranos doe PawtucketObrigada par servir a nossa pals e pelos sacrificios quo fizeram pare quo passamos viver livromente em nassa grando cidade. ACidado oferece isengAo do irupostos Para voteranos elegfveis. Nosso Contra Senior organize uma reuniao a partir do Departamentodoe Assuntas do Vetoranos dle Guerra dos EUIA toda primeira quinta-feira do m6s, das 9h As 15h. Ligue para 728-7582 Pareaendar. 0 Escrit6rio do Rhode Island para Assuntos de Vetoranos roaliza trequentemento eventos do divulgagao na cidade asompro estA dispanivel para ajudar. Ligue Pare: 921-2119. 0 Conselho do Veteranos doe Pawtucket funciana em coordonagdo camnas diversos grupas doe vetoranos da cidade, trabalba em virios assuntos e organize eventos, camo as cerim6nias do Memorial Dayo do Veterans Day. EstAk procurando envolvor meis veteranas do Pawtucket. So estiver interossado em so unir a um grupo doveterenos ou a umn pasta da legida, entre em cantata cam nosso oscrit6ria, polo nijmero 401-728-0500, remal 281 ou Polo e-mailMavarsOfficeva~oawtucketricom. AI6m disso, a Honor Flight Network, quo transporta nossos lier6is at4 Washington, D.C. paravisitar a ref letir em seus memoris, ostendleu seus servigos aos veteranas doe Pawtucket da Segunda Guerre Mundiel, de Guorre daCorola o liqueles quo ostda cam daengas terminals. Entre em cantata canosco caso voc6 ou umn mombro da familia seja elogivol eesteja intorossada.

TAX RATE: RESD $20.13 CMRE $33.21

2018 EAL STAT TAXTOTAL AMOUNT OF STATE AID $96,157,056

STATE AID 10OWERS TAX RATE BY: RESD $18.19CMRE $30.01

MAKE CHECKS PAYABLE TO:

PawtcketCITY OF PAWTUCKET

-JOI TH EVOUTIN -MAKE PAYMENTS TO:RE: 154130 -J I H VLTO-CITY OFPAWTUCKETCURRENT OWNER PO. BOX 099709COUGAR CAPITAL 11 LLCPO BOX 55071 SUITE 41505BOSTON, MA 02205 PLEASE USE ACCOUNT NUMBER WHEN PAYING BILL

YOU MAY ALSO PAY YOUR BILL ONLINE AT:WWW.PAWTUCKETRI.COM

ACCOUNT# 154130 REAL ESTATE TAXES BASED ON ASSESSMENT DATE OF DEC. 31, 2017___________________________________________________________ PLEASE PRESENT ENTIRE BILL WHEN MAKING

rli 10&ALE PAYMENTS IN PERSON. FULL PAYMENT IS DUE

52 0199 134 HARRISON ST BUILDING 672,200 22,323.78 ON OR BEFORE JULY 16, 2018 TAXES MAY BELAND 87,500 2,905.88 PAID IN QUARTERLY INSTALLMENTS ON JULY 16,TOTAL COMMERCIAL 759,700 25,229.64 2018, OCTOBER 15, 2018, JANUARY 15, 2019

AND APRIL 15, 2019. TAXES NOT PAID BY THE

DUE DATE ARE DELINQUENT AND WILL CARRY

FULL PAYM ENT COUPON INTERESTCHARGE FROM JULY 17, 2013 ON THE

RESD SCOOL $608 OHER $1.05CURRENT UNPAID BALANCE AT THE RATE OF

CMRE: SCHOOL: $10.04 OTHER: $23.17 13% ANNUALLY. INTEREST WILL BE ASSESSED- - ON OCTOBER 16, 2018, JANUARY 16,2019 AND

IF PAYING BILL IN FULL, PLEASE INCLUDE THIS STUB WITH YOUR CHECK TOTAL 25,229.64 APRIL 16, 2019. FAILURE TO PAY IN QUARTERLY

FULL PAYMENT IS DUE IF ANNUAL TAX DUE IS $99.99 AND UNDER INSTALLMENTS WILL RESULT IN FULL PAYMENTDUE. R.I.G.L. 44-5-8

18 000154 130000002 52296421

20 8 CITY OF PAWTUCKET, RI Colco' 0 8 CITY OF PAWTUCKET, R I Cleco'

QUARTERLY 4PAYMENT Stub QUARTERLY 31PAYMENT I Stub

MUST BE PAID ON OR BEFORE APRIL 15, 2019 MUST BE PAID ON OR BEFORE JANUARY 15, 2019

1 = II,(RMN-t~154130 134 HARRISON ST J154130 134 HARRISON ST

PLAT:52 LOT: 01 99 PLAT: 52 LOT: 0199

amImmv I~ ICOUGAR CAPITAL 11 LLC 6,307.41 OUGAR CAPITAL 11 LLC 6,307.41

1800015413000000063074173 18000[15413000000063074173

20 8 CITY OF PAWTUCKET, RI folletrs 2 1 CITY OF PAWTUCKET, RI Collco'

QUARTERLY 2PAYMENT Stub QUARTERLY 1 PAYMENT Stub

PLEASE USE FULL PAYMENT COUPON IFAMOUNT DUE IS $99.99 OR LESS

MUST BE PAID ON OR BEFORE OCTOBER 15, 2018 MUST BE PAID ON OR BEFORE JULY 16, 2018j ~ RMMI mm

154130 134 HARRISON ST 15410 134 HARRI SON ST

PLAT: 52 LOT: 0199 PLAT: 52 LOT: 0199

1US r=tvl~~ W fm vyCOUGAR CAPITAL 11 LLC 6,307.41 COUGAR CAPITAL 11 LLC 6,307.41

18000154130000000r63074173 1800015413000000063074173

VALUE EXEMPTIONS AVAILABLE

For Information on all exemptions and qualifications for exemptions, please check the website atwww.pawtucketrl.com, or contact the Tax Assessor's Office at (401) 728-4500.

Qualified Veteran To each person who served in the military or naval service of the United States, in any war or conflict listed in 44-3-4, as amended,

of the General Laws of the State of Rhode Island.

Unmarried widow of Qualified veteran

Gold Star Parents (one only)

Total service-connected veteran (100% disabled)

Certified Blind Residents

Handicapped Exemptions Must be under 65 years of age and own and occupy real estate in the City of Pawtucket. (Please see Elderly Exemption)

Elderly Exemption 65 years + (Real Estate Only)

Prisoner of War

Total service-connected disabled veteran Who lives in 'specially adapted housing'

Specially adapted autos for handicapped (50% off up to $10,000)

Real estate that Is Individually listed or a Contributing structure in a National Register of Historic Places and Is listed on the City of Pawtucket's local

historic district as defined in the City Ordinance Chapter 2726 Section 363-59 as amended. Must be Owner Occupied residential property.

* Exemptions on motor vehicles are determined 2,000

as prescribed by RIOGL 44-34.1-1 regarding the phase out of motor vehicle taxes or as approved by the state

R.I.G.L. 44.3.3 (16) Property Tax Relief

R.I.G.L. 44.5.13.2.5 Exemption for residential improvements. Details and application available In the Tax Assessor's Office.

PAYMENT INFORMATION

If this tax is paid in four (4) installments, the first shall be payable not later than July 16, 2018, the second not later than October 15, 2018, the thirdnot later than January 15, 2019, and the fourth not later than April 15, 2019. If taxes are paid in the CURRENT year, interest will be charged at therate of 13% back to the quarterly due date only. On July 17, 2018, the 2017 taxes will be considered PRIOR, and the interest of 13% wilt be chargedback to the original due date of the bill (July 17, 2017).

Interest on all PRIOR year taxes will be charged at the rate of 13% back to the original due date.

R.I.G.L. ? 44-5-8 Form of option for quarterly payment. -' T Each installment of taxes If paid on or before the last day of each installment periodsuccessively and in order is free from any interest charge." "if the first installment or any succeeding installment of taxes is not paid by the last date ofthe respective installment period or periods as they occur, then the whole tax or remaining unpaid balance of the tax, as the case may be, immediate-ly becomes due and payable and carries until collected a penalty at the rate of 13 percent."

S owtuckeii~ JOI!N THE EVOLUTION

Mayor Donald Rt. Grebien401-728-0500, Ext. 281 DGrebien~Dawtucketri.com

Renvst en in our Schools. Progress continues at our schools. The full renovation of Potter

Burns Elementary was completed and students and teachersSare enjoying atransformed, bright and welcoming environment.

The full renovation of Nathanael Greene Elementary is movingIUI!JLalong and on-time to be completed in August. The City and the

~~JI4 ; ~ 5 School Department will continue to make our schools and~Arr~ischool buildings a priority. We introduced an additional bonding

~d~r proposal to continue our investment, with the assistance of~State reimbursement. We will be sharing additional information

with you.

The City also extends its best wishes and congratulations to our2018 graduates.

Train StationThe Pawtucket-Central Falls Train Station project is moving forward.The Rhode Island Department of Transportation has gone out to bidfor the design and build of the train station stop. Approximately $50million in federal, state and municipal funding has already beencommitted to build the new train station and transit hub, which areexpected to be substantially completed by 2021.

This spring. Mayor Grebien joined elected officials and members ofthe community to launch plans for the new Conant Thread District. The IM DID100Ddistrict surrounding the train station offers 4 million square feet ofpre-permitted development opportunities and another 4 million squarefeet adjacent in downtown Pawtucket. The authentically urban 150-acre district spans two Rhode Islandcities - Central Falls and Pawtucket - in the epicenter of the American Industrial Revolution. The creationof this energetic district will produce housing and job opportunities and a place for businesses to thrive. Visitwww.ConantThre~d.com for more information and updates.

Pawtucket VeteransThank you for your service to our country and for the sacrifices you have made so we can live freely in ourgreat city. The City makes tax exemptions available for eligible veterans. Our Senior Center hosts aliaison from the U.S. Department of Veterans Affairs the first Thursday of every month from 9 a.m. -3 p.m.Please call 728-7582 to make an appointment. The Rhode Island Office of Veterans Affairs frequentlyhosts outreach events in the city and are always available to help. Please call them at: 921-2119.

The Pawtucket Veterans Council coordinates with the various veterans' groups within the city, works onvarious issues and organizes events such as Veterans and Memorial Day ceremonies. They are lookingto involve more Pawtucket veterans. If you are interested in joining a legion post or veterans' group,please contact our office 401-728-0500 ext. 281 or Mayo rsOffice@'pawtucketri.com.

In addition, the Honor Flight Network that transports our heroes to Washington, D.C. to visit and reflect attheir memorials, has reached out regarding Pawtucket World War 11, Korean War, and terminally illveterans. Please reach out to us if you are a family member are eligible and interested.

SPawtucketMayor Donald Rt. Grebien

401 -728-0500 Ext. 281 DGrobien~aoawtucketri.cam

Reinversi6n en nuestras escuelasEl pragresa cantinda en nuostras escuelas. Se camplet6 Ia renavaci6n total doe Potter Burns Elementary, y los estudiantes ymaestros est~n disfrutando dle un entorno transformado, lurninosa y acogedor. La renovaci6n total do Nathanaol GreeneElementary cantinija dontro del plaza pautado y so complotarA en agosto. El Municipia y el School Department (Departarnentodo Escuolas) seguirAn haciendao quo nuestras escuolas y nuestras edliticios escalares sean una prioridad. Presontamos unapropuosta do bonos adicianal para seguir con nuestra inversi6n, can Ia asistoncia do reintogro del Estado. Compartirernosinformaci6n adicianal can ustedos. El Municipio tambi~n extiondoe sus felicitaciones y mejares deseas a los graduadas doe Iaclaso doe 2018.

Estacidn de trenesEl prayecto do Ia Pawtucket-Central Falls Train Station (Estaci6n do Trenes Pawtucket-Central Falls) sigue avanzanda. El RhodeIsland Department of Transportation (Departarnento dle Transporte do Rhode Island) ha abiorto las licitacianes para el disefia y [acanstwucci6n do [a parada do [a estacidn doe trones. Ya so han dedicada aproximadamento $50 millanes do rondlos fodorales,estatales y rnunicipales para construir Ia nuova estaci6n do tronos y el nueo contra dle trAnsita. Se espora quo estos est6n casicompletas Para el 2021.

Esta primavera, el alcaldo Grebien se unid a funcionarias electas y miembras de Ia carnunidad para iniciar las planes para el nuovodistrito doe Conant Thread. El distrito quo rodea a Ia estaci6n dle trenes ofroco 4 millones de pies cuadrados doe oportunidados dodosarrollo con permisa provia y otros 4 millones de pies cuadradas adyacentos al contra doe Pawtucket. El distrito aut6 'nticamenteurbana de 150 acres incluye a dos ciudlades do Rhode Island, Central Falls y Pawtucket, en ef opicentro do Iao revoluci6n industrialostadounidonse. La croaci6n dle este vigarasa distrito gonerarA oportunidades do viviendas y empleos y un lugar para quo [asempresas prosperon. Para obtenor mis informaci6n y datos actualizadlos, visite wrww.CanantThread.com.

Veteranos do PawtucketAgradecernos; a los veteranas par el servicia quo brindaron a nuestro pals y par los sacrificios quo han hecha para quo podarnosvivir con libertad en nuestra gran ciudad. El Municipia realiza oxonciones impasitlivas a los vetoranas; elogibles. Nuestra SeniorCenter (Contra para Ia Tercera Edad) roaliza rouniones do enlace con ol U.S. Department of Veterans Affairs (Dopartamenta doAsuntas do Veteranas dle EE. UU.) el prirnerjueves do cada mos, do 9:00 a. m. a 3:00 p. n. Lianie a] 728-7582 para pedir una cita.La Rhode Island Office of Veterans Affairs (Oficina de Asuntas do Veteranas do Rhode Island) realiza eventos doe canexi6n confrocuoncia en la ciudlad, y siempre estA dispuesta a ayudar. Comuniqueso con el personal al 921-2119.El Pawtucket Veterans Council (Cansojo do Veteranos; do Pawtucket) trabaja en caardinaci6n can los diferentes grupos doeveteranos de ta ciudad para resolver problemas y organizar eventas, coma la celebraci6n del Dia de los, Vetoranas do Guerra y elDfa dle los Caidlos en Guerra. Su personal desea quo mAs veteranos do Pawtucket participen. Si le interesa unirse a un contra do IaAmerican Legion (Legion Estadounidonso) cun grupa do votoranos, comuniquoso con nuostra oficina al 401-728-0500, int. 281. oescriba a MayorsOffice~ipawtucketri.com. Ademds, Ia Honor Flight Network que transporta a nuestros hdroes a Washington D. C.para visitas y ref loxiones en las manumontos so ha camunicada con nasatros para hablar sabre los voteranos do Pawtucket quohayan prestado servicia en la Segunda Guorra Mundial y Ia Guorra doe Corea y las voteranas quo sean.

Fleinvestirnento nas nossas escolaso progresso continua nas nassas oscolas. A roforma completa da Potter Bums Elementary fal finalizada e alunos e prof essaresostdo curtinda urn ambiento nova, alegre e acoihedor. A roforma completa da Nathanael Greene Elementary estA emn cursa eemn dia para sor finalizada emn agasto. A Cidade eo aDopartamonta Escalar continuar~o a priorizar nossas escolas e suasinstalavaes. Aprosontamas uma praposta adicianal para cantinuar cam nasso investimonta, cam a apolo do reembolsa estatal.Campartiiharomos mais informaQ6os. A Cidado tamrb6m onvia seus melhores votos eaos parabdns aos nossos; torrnandos 2018.

Estagia do tremo prajoto da esta9Ao de trern Pawtucket-Central Falls estA emn andamento. 0 Departamento do Transportes do Rhode Island fez aoforta para projetar e canstruir a parada da ostaQdo de from. Aproximadamento 50 rnilh6os do d6lares em fundaos municipais,ostaduais e fedorais jA foram usados; para construir a nova esta9Ado t rem eo acontra doe trAnsito, quo dovomn ser finalizados at62021 .Nesta primavera, a profeito Grebien uniu-so aos representantes, eloitos e aos mombros da cornunidado para lanvar as pianospara a nova Distrita dle Conant Thread. 0 distrito ao redor da ostagdo do from oforece 1200 kma doe oportunidades paradosonvolvimento previamente autorizadas o outros 1200 knV adjacontes no contra do Pawtucket. 0 distrita autenticamento urbanado 150 acres abrange duas cidades de Rhode Island - Central Falls o Pawtucket - no epicontro da Revolugda Industrial Americana.A criapAo deste vigoroso distrito produzirA apartunidades doe emprego e moradia e umn lugar para quaos negocios prasperern. Paramais informaQ6es e atualizaq6es, visite www.Conantmhread.com.

Veteranos do PawtucketObrigado par servir a nassa pals e polos sacrificias quo fizorarn para quo possamos viver livremonto emn nassa grande cidado. ACidado oferoco isongdo doe impostos para voteranos olegivois. Nassa Contra Sdniar organiza uma reunido a partir do Dopartamontodo Assuntos dle Vetoranos do Guorra dos EUA toda primoira quinta-foira do m~s, das 9h Ais 1 5h. Ligue para 728-7582 Paraagendlar. 0 Escrit6rio do Rhode Island para Assuntos do Veteranos realiza frequentomento ovontos do divulgagdo na cidado esernpre estA disponivol para ajudar. Liguo Para: 921-2119. 0 Conselha doe Veteranos do Pawtucket funciona em coordenagdo camas diversos gwupos do veteranas da cidade, trabalha em virios assuntas e organiza oventas, coma as corimbnias do Memorial Dayo do Veterans Day. EstA procuranda envolver mais veteranos do Pawtucket. So ostivor intoressadoaem so unir a urn grupo dovoteranas au a urn pasta da Iegido, ontro em cantata, cam nossa escrit6ria, polo nfimoro 401-728-0500, ramal 281 ou polo e-mailMavors~ffice@'Dawtucketri.carn* Al6m dissa, a Honor Flight Network, quo transparta nassos hor6is at6 Washington, D.C. paravisitor e ref letir em seus memoriais, estondeu seus sorviqos aos veteranas de Pawtucket da Segunda Guerra Mundial, da Guerra daCoreia e b~quaes que estAo corn doengas torminais. Entro emn cantata canosco casa vacd ou urn membra da familia soja ologivol oosteja interossado.

Addenda

Addendum E

FHLMC & STATEMENT OF LIMITING

CONDITIONS (FORM 439)

Addenda

CBRE NEW ENGLAND

DEFINITION OF MARKET VALUE: The most probably 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 car 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 judgment.

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.

Addenda

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 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 alternations 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 mortgages 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 services(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.

CBRE NEW ENGLAND

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 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, 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, 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

Addenda

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, sec, handicap, family status,

or national origin of either the prospective owners or occupants of the subject or the present

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

5. I have no present or contemplated future interest in the subject, 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 results, 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 notes 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 and the exterior of all

properties listed as comparables in the appraisal report. I further certify that I have notes 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 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.

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.

Addenda

SUPERVISORY APPRAISER'S CERTIFICATION: If a supervisory appraiser signed the appraiser

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: , 422 Pawtucket Avenue, 134 Harrison Street/635 Main

Street, Pawtucket, Providence County, Rhode Island

APPRAISER: SUPERVISORY APPRAISER (only if required):

Name:

James T. Moore

Name:

Harris E. Collins

Date

Signed:

July 11, 2018 Date

Signed:

July 11, 2018

State Certification

No.:

RI Cert. Gen. Appraiser

Lic. #0020042

State Certification

No.:

MA Cert. Gen. Appraiser

Lic. #0A01402

or State License

No.:

Same or State License

No.:

Same

State

:

Massachusetts State: Massachusetts

Expiration Date of Certification or

License:

10/27/2019

Expiration Date of Certification or

License:

07/28/2019

DID Did not inspect the Property

Addenda

Addendum F

QUALIFACATIONS

James T. Moore, MAI, MRICS Executive Vice President/Partner, Valuation & Advisory

CB Richard Ellis N.E. Partners, LP, a CB Richard Ellis Joint Venture

——————————————— Experience ———————————————

James T. Moore joined CBRE/New England in July 2000 and is responsible for all aspects

involved in completing appraisal and consulting reports for all property types. His experience

includes analysis of over $30 billion in property and the completion of over 3,500 assignments.

Mr. Moore is part of a ten-member team. The team’s expertise in valuation and advisory

services includes single-asset and portfolio valuations, capital market support services, litigation,

foreclosure and bankruptcy support, arbitration and consultation and ad valorem property tax

appraisals.

While available for a variety of assignments in New England, with specific market knowledge of

the Boston metropolitan area, southern New Hampshire and Rhode Island; Mr. Moore has

developed an unparalleled expertise in multifamily housing and has established an extensive

database of market trends including capitalization rates, market rents, building sales, expense

comparables and land sales.

———————————— Significant Transactions —————————— Multifamily: The Troy, 315 on A, The Clarendon, Edo, Edge, Element, Battery Wharf, The

Trilogy, 1330 Boylston Street, Gatehouse 75, The Boston Conservatory, Boston, MA; The Batch

Yard, Everett, MA; The Residences at Marina Bay, Highpoint, The Reserve, Quincy, MA; Avalon

North Point, Hanover Cambridgepark, Fuse Cambridge, Atmark, 303 Third Street, Watermark,

Regatta Riverview, Cambridge, MA; The 903 Residences, Providence, RI; Royal Crest, Nashua,

NH; Watertown Mews, Riverpark Lofts, Whitney on Main, Watertown, MA; Padanaram Acres,

South Dartmouth, MA; Station 250, Dedham, MA; Madbury Commons, UNH Student Housing,

Durham, NH.

Office: State Street Financial Center, 53 State Street, One and Two International Place, 50 Milk

Street, 500 Boylston Street, 222 Berkeley Street, 75-101 Federal Street, Boston, MA; Solomon

Pond Park, Marlborough, MA; TJX Headquarters, Framingham, MA; Fidelity Corporate

Campus, Merrimack, NH; and over 2.5 million square feet of assets in Boston’s Seaport

submarket.

Retail: Derby Shoppes at Hingham, Hingham, MA; Cranston Parkade, Cranston, RI; The

Crossing at Walker’s Brook, Reading, MA; Hooksett Commons, Hooksett, NH; Middletown

Village, Middletown, RI; Stallbrook Marketplace, Bellingham, MA; Best Buy, Boston, MA; and

over 500,000 square feet of space along Newbury Street.

Industrial: 75 John Quincy Road, 275 John Hancock Road, Taunton, MA; Forge Park Portfolio;

I-290 Industrial Park; Colony Partners Industrial Portfolio.

Portfolios: Home Properties, Gerding Edlen, Equity Office; KS Partners; Flatley Company;

Archstone Smith; Cabot, Cabot & Forbes; Davis Companies; Gravestar Retail; CBL Retail

Portfolio; Galielo Funds Retail Portfolio; and Ampad New England Industrial Portfolio.

Litigation/Other: International Place Bankruptcy; Dock Square Parking Garage, Boston; Custom

House Parking Garage, Portland, ME; Inskip Auto Dealership, Warwick, RI.

——————————— Professional Affiliations ———————————

• Member of the Appraisal Institute, MAI

• Member of the Royal Institution of Chartered Surveyors, MRICS

Clients Represented

T +1 617 912 6977

F +1 617 912 6901 C +1 617 306 3161 [email protected]

33 Arch Street, 28th Floor

Boston, MA 02110

• AIG

• Arbor Commercial Mortgage

• Bank of New England

• Berkeley Point

• Capital One Bank

• Capitol Alliance

• Citigroup

• Cresset Group

• Deutsche Bank

• East Boston Savings Bank

• Estrich & Co.

• Goedecke & Co.

• Goldman Sachs

• HFF

• JP Morgan

• KeyBank

• Marcone Capital

• Morgan Stanley

• Northern Bank & Trust

James T. Moore, MAI, MRICS Executive Vice President/Partner, Valuation & Advisory


——————————— Professional Achievements —————————

• Recognized as one of the top appraisal production professionals at CBRE nationally

• Recognized multiple times as one of the Top 225 CBRE brokers nationally

———————————————— Education ———————————————

• Skidmore College, B.S.

• Northmarq

• PNC Bank

• RREEF

• UBS

• Walker & Dunlop

• Webster Bank

State of Rhode Island and Providence PlantationsDepartment of Business Regulation

Real Estate Appraisers SectionJohn O. Pastore Complex, Bldg. 69-1

1511 Pontiac AvenueCranston, RI 02920-0942

Deputy Director

Certification No._____________________ This Certification Expires on: _____________________

(In accordance with Title V, Chapter 20.7 of the General Laws of Rhode Island relating to Real Estate Appraisers)Pursuant to vested authority and having received full payment of the required fee, the Department of Business Regulation haslicensed/certified

The person named herein may engage in the business of appraisal practice, provided he shall in all respects conform tothe Provisions of Title V, Chapter 20.7 of the General Laws of Rhode Island 1987, as amended, and the rules and regulationsissued under authority thereof, beginning ____________________ and ending _____________________ unless this license is

suspended revoked or voluntarily returned to the Department during this period.

Certified General Appraiser

Chairperson, Real Estate Appraisers Board

10/28/2017

CGA.0020042

James T. Moore

10/27/2019

10/27/2019

Harris Collins Executive Vice President/Partner, Valuation & Advisory


——————————————— Experience ———————————————

Harris E. Collins joined CBRE/New England in 1991 and is responsible for all aspects involved

in completing appraisal and consulting reports in all property types. His experience includes

analysis of over $35 billion in property on over 3,500 assignments.

———————————— Significant Transactions —————————— • Hotel: Langham Hotel, Boston, MA; Liberty Hotel, Boston, MA; Jury’s Hotel, Boston, MA;

Hilton, Dedham, MA; Sheraton, Newton, MA; and Westin, Providence, RI.

• Office: One Post Office Square, Boston, MA; One Beacon Street, Boston, MA; 125 High

Street, Boston, MA; Crosspoint, Lowell, MA; Waltham Woods, Waltham, MA; Unicorn

Office Park, Woburn, MA.

• Retail: The Loop, Methuen, MA; Providence Place, Providence, RI; Greendale Mall,

Worcester, MA; Rhode Island Mall, Warwick, RI.

• Industrial: Precision Park, North Kingstown, RI; Foss Manufacturing, Hampton, NH; Gillette,

Ayer, MA; 600 N. Bedford St., East Bridgewater, MA.

• Multi-Family: Union Square, Boston, MA; Museum Towers, Cambridge, MA; Waterford

Village, Bridgewater, MA; Cambridge Park Place, Cambridge, MA.


• Massachusetts Certified General Appraiser

• New Hampshire Certified General Appraiser

• Maine Certified General Appraiser

• Rhode Island Certified General Appraiser

• Member of the Appraisal Institute, MAI

• Member Counselors of Real Estate, CRE

• Fellow, Royal Institution of Chartered Surveyors, FRICS

• Board of Overseers, Milton Hospital

• Past Member Leadership Board, New England Chapter, Counselors of Real Estate

——————————— Professional Achievements —————————

• Recognized multiple times as one of the Top 225 CBRE producers nationally

——————————————— Education ————————————————

• Lehigh University, Bachelor of Science

Clients Represented

T +1 617 912 6912

F +1 617 912 7001

[email protected]


Boston, MA 02110

• AIG Global • Allstate • Boston Private Bank • Bank of New Hampshire • Cambridge Savings Bank • Campanelli Companies • CIBC • City of Boston • Colony Realty Capital • CSFB • Eastern Bank • ING Clarion • Liberty Bank • Middlesex Savings Bank • Morgan Stanley • Nationwide Life Insurance • New York Life • Northern Bank & Trust • PNC Bank • Principal • Prudential Insurance • RBS Greenwich Capital • Rockland Trust • RREEF • Salem Five • Sun Life Insurance Co. • TA Associates Realty • The Flatley Company • TIAA-CREF • UBS • Webster Bank • WP Carey




Deputy Director







07/29/2017

CGA.0A01402

Harris E. Collins

07/28/2019

07/28/2019

Matthew Wood Senior Vice President, Valuation & Advisory Services


——————————————— Experience ———————————————

Matthew Wood commenced his appraisal career in 2001 and is currently a Senior Vice

President on CBRE/New England’s Valuation & Advisory Services team located in Boston,

Massachusetts. Responsibilities include completing appraisal and consulting reports across

all property types throughout Massachusetts, Maine, Rhode Island, New Hampshire and

Vermont.

Previously Matt spent over six years working throughout the Middle East; initially as a

Senior Appraiser for Colliers International and five years as an Associate Director of real

estate investments for an Abu Dhabi-based private equity real estate firm specializing in

fund and asset management and property development. Prior to that Matt spent five years

as a commercial real estate appraiser in Melbourne, Australia.

Matt has real estate experience throughout North America, Australia, the Middle East and

North Africa with experience in:

• Property appraisal and valuation across most property types including hotels,

retail, shopping malls, industrial, warehouse distribution centres, self-storage,

commercial buildings, development, senior housing and multifamily

• Acquisition and divestment of real estate assets

• Fund and asset management

• Property development

• Corporate finance and governance including board and investor reporting;

The CBRE/NE Valuation & Advisory Services team’s expertise includes single-asset and

portfolio valuations, capital market support services, market analysis, market feasibility

studies, highest and best use studies, litigation, foreclosure and bankruptcy support,

arbitration and consultation, discounted cash flow analysis, and ad valorem property tax

appraisals.


• Associate of the Australian Property Institute, AAPI – Certified Practicing Valuer

• Professional Member of the Royal Institution of Chartered Surveyors, MRICS

• Designated Member of the Appraisal Institute, MAI

• Certified General Appraiser in MA, ME, NH, RI, VT

——————————————— Education ———————————————

• RMIT University, Melbourne, Australia; B.Bus (Prop) with Distinction

• University of South Australia, Adelaide, Australia; MBA (Property Management)

Clients Represented

T +1 617 912 6956

F +1 617 912 7001

[email protected]


Boston, MA 02110

• Ackman-Ziff • AIG • Allianz • Arbor • Avalon Bay • Bank of China • Barclays • Baupost • Calare Properties • CIII Asset Management • Deutsche Bank • Digital Credit Union • East Boston Savings Bank • Equity Industrial • First Republic Bank • GE Capital • Goedecke & Co • Goldman Sachs • Hartford Life Insurance

Company • JP Morgan • KBS Capital Advisors • LaSalle Investments • MIT Management Co • Morgan Stanley • Northern Bank & Trust • Peoples Bank • Prologis • Prudential • Rockland Trust • Torchlight • UBS • Wells Fargo




Deputy Director







06/25/2018

CGA.0060025

Matthew J. Wood

06/24/2020

06/24/2020

Shelly D’Aleo Senior Valuation Associate, Valuation & Advisory Services


——————————————— Experience ———————————————

Shelly D’Aleo is currently a Senior Valuation Associate with the Valuation & Advisory Services

team located in Boston, Massachusetts. Her responsibilities include completing appraisal and

consulting reports across all property types throughout Massachusetts, Maine, Rhode Island,

New Hampshire and Vermont.

The CBRE/New England Valuation & Advisory Services team’s expertise includes single-asset

and portfolio valuations, capital market support services, market analysis, market feasibility

studies, highest and best use studies, litigation, foreclosure and bankruptcy support, arbitration

and consultation, discounted cash flow analysis, and ad valorem property tax appraisals.

———————————— Significant Transactions —————————— The following is a partial summary of assignments completed:

Multifamily: 304 Newbury Street, Boston, MA; Twenty Two Liberty, Boston, MA; Mandarin

Residences, Boston, MA; Weston Crossing Apartments, Braintree, MA; MIT Portfolio,

Cambridge, MA; 65 Dana Street, Cambridge, MA; 501 Eastern Avenue, Malden, MA; Rockett

Trust Portfolio, Marblehead, MA; Heritage Portfolio; McGowan Portfolio, Lowell & Dracut,

MA; 45 Prospect Hill Street, Quincy, MA; 119 College Avenue, Somerville, MA; 116-118

Dorchester Avenue, South Boston, MA; 15 Dix Street, Winchester, MA; Philips International

Portfolio, Swampscott, MA

Retail: Rockett Trust Portfolio, Marblehead, MA; Citizens Bank Portfolio, NH & VT; 105 Pleasant

Valley Street, Methuen, MA; 11 Faneuil Street, Boston, MA; 615 Arsenal Street, Watertown,

MA; 32-42 West Broadway, South Boston, MA; 1351 White Mountain Highway, North Conway,

NH; BJ’s, Weymouth, MA; 1657 White Mountain Highway, North Conway, NH; West Marine

Portfolio; 624 Boston Road, Springfield, MA; BJ’s, Tilton, NH; 981 Grafton Street, Worcester,

MA; 250 Whiting Farms Road, Holyoke, MA; 416 William S. Canning Boulevard, Fall River, MA;

390 Arsenal Street, Watertown, MA; 65 Mount Auburn Avenue, Auburn, ME

Industrial: Harvey Portfolio; New Englander Industrial Portfolio, Holliston, MA; Brookfield

Portfolio, Westborough, MA; 30 & 32 International Way, Lawrence, MA; 40 Newmarket Square,

Boston, MA; 1 B Street, Derry, NH; 82 South Street, Hopkinton, MA; 580 Pleasant Street,

Watertown, MA; 29 Sanford Drive, Gorham, ME; 46 Stafford Street, Lawrence/Methuen, MA;

120 Forbes Boulevard, Mansfield, MA

Office: 68 Harrison Avenue, Boston, MA; 655 Summer Street, Boston, MA; GTech, West

Greenwich, RI; 750 Dorchester Avenue, Boston, MA; 288 Walnut Street, Newton, MA; 1

Holyoke Square, Salem, MA; 152 Grove Street, Waltham, MA


• Associate Member, Appraisal Institute

• Massachusetts and Maine Appraisal Trainee

——————————————— Education ————————————————

• Bentley University, B.S.

• McCallum Graduate School of Business, Bentley University; MBA (Finance)

Clients Represented

T +1 617 912 6930 C +1 860 841 0923

F +1 617 912 7001

[email protected]


Boston, MA 02110

• Akelius • Arbor • Bank of New Hampshire • Barclays • Beverly Bank • Brookline Bank • Cambridge Savings Bank • Commerce Bank • Digital Federal Credit Union • East Boston Savings Bank • Enterprise Bank • First Republic Bank • Georgetown Bank • Goedecke & Co • Greystone • HarborOne Bank • Harvey Tool Company • Hunt Mortgage Group • Leader Bank • LNR Partners • Mansfield Bank • Melrose Cooperative Bank • Metropolitan Commercial

Bank • MutualOne Bank • Northern Bank • Pacific Western Bank • Prudential • Rockland Trust • Wakefield Cooperative Bank • Wells Fargo