TKR TONY KAMAND REALTY LLC - LoopNet · 71 Broadway, Level 2B, #108 New York, New York 10006 73 Old Dublin Pike, Suite 10, Doylestown, Pennsylvania 18901 *All replies to Toms River

TKR TONY KAMAND REALTY LLCReal Estate Appraisers and Consultants

Phone 732-286-9250 * Fax 732-286-1900200 Main Street, Suite 100

Toms River, New Jersey 0875371 Broadway, Level 2B, #108New York, New York 10006

73 Old Dublin Pike, Suite 10,Doylestown, Pennsylvania 18901

*All replies to Toms River office

WEB SITE WWW.TONYKAMAND.COM

November 3, 2017

Mr. Thierry Smith1st Jersey Commercial26 Main Street, Suite 1Toms River, New Jersey 08753

Re: “Calloway's”595-605 Route 9Block 29, Lots 21, 22, 23 and 24Eagleswood TownshipOcean County, New Jersey 08092

Dear Mr. Smith:

As per your request, Tony Kamand Realty LLC has completed a restricted appraisal report on the abovereferenced property (Subject Property). The purpose of this appraisal was to estimate the market value ofthe subject property as of October 19, 2017. The conclusions of our research and analysis is presentedwithin this report with all supporting documentation concerning the data, reasoning and analyses retained inour company files.

This appraisal report is intended to comply with the reporting requirements set forth under Standards Rule2-2 of the Uniform Standards of Professional Appraisal Practice for a restricted appraisal report. As such, itpresents only limited discussions of the data, reasoning and analyses that were used in the appraisalprocess to develop the appraiser’s opinion of value. The depth of discussion contained in this report isspecific to the needs of the client and for the reports intended use. The appraiser is not responsible forunauthorized use of this report.

The subject of this appraisal is an 8,178 square foot, single story restaurant and amusement park known asCalloways Restaurant and Eagleswood Amusement Park. The amusements include a driving range, two,18-hole miniature golf courses, batting cages, two go-kart tracks, an arcade building (4,000 square feet),pro shop with one apartment containing 3,742 square feet and a 1,300 square foot garage. The woodframe restaurant was built in 2001 and is currently in average condition. There was no noted deferredmaintenance. There was no deferred maintenance noted..

The buildings and site improvements are situated on a 13.680 acre site that has a topography that is gentlyrolling, but at street grade. The site has 843.70 feet of frontage on Route 9. The property is located in theC-2/V and R-A5, Highway Commercial/Village and Residential zone. The land to building ratio is 72.87:1,the building coverage is 1.37% and the FAR is 0.01.

595-605 Route 9, Eagleswood Township, New Jersey Page 2

12977 TONY KAMAND REALTY LLC

The real estate appraisal process typically includes defining the appraisal problem, inspecting the subjectproperty and its surroundings, considering the subject’s highest and best use, conducting a survey ofrelevant market activity, applying the appropriate approaches to value (Cost, Sales Comparison and/orIncome Approach), and reconciling the indicated values into a final value estimate.

The scope of this appraisal involved all the necessary research and analysis in order to prepare a restrictedappraisal report. This report has been written to conform to the Uniform Standards of ProfessionalAppraisal Practice (USPAP) as established by the Appraisal Foundation, as well as the standards of theAppraisal Institute. The report is intended to comply with the reporting requirements set forth underStandards Rule 2-2 of the Uniform Standards of Professional Appraisal Practice for a restricted appraisalreport. A review of the scope for this assignment was as follows:

Property Type: Restaurant and Amusement FacilityOwner: Steakmaster, Inc..Purpose of Appraisal: Estimate Market ValueUse of Appraisal: To assist in setting a sales priceValue Interest: Fee simple estateIntended Client: 1st Jersey CommercialIntended User: 1st Jersey CommercialExtraordinary Assumptions: There are no extraordinary assumptions..Hypothetical Conditions: There are no hypothetical conditions..Highest and Best Use: As Vacant – Retail; As Improved – Continued useInspection Date: October 19, 2017Valuation Date: October 19, 2017Photographs Taken On: October 19, 2017Inspected By: Tony F. Kamand Jr., MAI and Lisa M. Laurence

Extent of Inspection: Exterior and interior of improvements (what was readily observable), aswell as the surrounding area

Subject Land and BuildingMeasurements:

Land dimensions and area was obtained from public records.Improvement size was obtained from the appraisers measurements.

Approaches Used for Conclusion: Cost and Sales Comparison Approaches

Extent of Research: Research of public records, tax records and company files. We also spokewith brokers and participants active in this market.

Based on our inspection of the subject property, the investigation and analyses undertaken it is our opinionthat the market value of the subject property in the fee simple estate as of October 19, 2017 is:

Value Type Value Premise Value Perspective Date of Value Concluded ValueMarket Value As Is Current October 19, 2017 $5,700,000

According to the tax collector’s office of Eagleswood Township as of October 19, 2017 the taxes on the subject property are past due Theprincipal amount owed is $53,481.25. This does not include interest or penalties.

The concluded value is cited in cash or equivalent terms and assumes the site to be environmentally soundand in compliance with all state and federal environmental regulations.



It must be noted that only our client who has contracted us and paid for this report is permitted to use thisreport. This report and the data, analysis and ideas incorporated herein, as an instrument of professionalservices, is the property of Tony Kamand Realty LLC and is not to be used, in whole or in part for any otherpurpose without the written consent of Tony Kamand Realty LLC.

We certify that we have no present or contemplated future interest in the property and that our employmentand compensation are in no way contingent upon the value reported.

If you have any questions or need additional information please do not hesitate to contact us.

Respectfully submitted,

TONY KAMAND REALTY LLC

Tony F. Kamand Jr., MAI Lisa LaurenceNJ Certified General Real Estate Appraiser, No. RG-668 NJ Certified General Real Estate Appraiser, No. RG-1874



VALUATION PROCESS

Typically, real estate can be valued by applying three approaches, i.e., Cost, Sales Comparison andIncome Capitalization.

VALUATION PROCESS

This is a restricted appraisal report which is intended to comply with the reporting requirements set forthunder Standards Rule 2-2 of the Uniform Standards of Professional Appraisal Practice for a restrictedappraisal report. In this valuation analysis, we have applied the Cost and Sales Comparison Approaches tovalue. The two approaches to value will be reconciled and a final value concluded for the subject. Mostweight will be placed upon the approach or approaches that best reflects market value.

THE COST APPROACH

The Cost Approach is an appraisal technique in which the present value of the land, as vacant andavailable for development to its highest and best use is estimated using the Sales Comparison Approach.The land value is added to the depreciated cost of the improvements. The depreciated cost of theimprovements is estimated by calculating the reproduction cost new of the improvements and siteimprovements and deducting any attributed loss from accrued depreciation.

The Cost Approach is based upon the proposition that an informed buyer would pay no more than the costof producing a substitute property with the same utility as the subject property. The Cost Approach wasapplied to the subject property in the following manner:

Our comparable land sales are presented as follows. A complete narrative write-up of each land sale is contained in our files. Inaddition the complete land sales analysis, replacement cost calculations and estimates of all accrued depreciation are containedin our files. The following is a summary of our conclusions.

LAND SALES ANALYSIS AND CONCLUSIONS

The comparable land sales (refer to next page) represent similar parcels of vacant land. Each sale differedas compared to the subject and required adjustments. Factors of adjustment include property rights,financing, special conditions, market conditions, location, size, topography and site characteristics.

Subject Sale # 1 Sale # 2 Sale # 3 Sale # 4 Sale # 5

Address 595-605 Route 9 2302-2310 LakewoodRoad (Rt. 9)

2290-2298 LakewoodRoad (Rt.9)

1815-1823 LakewoodRoad

1815-1823 LakewoodRoad 155 Route 9

City Eagleswood Township Toms River Township Toms River Township Toms River Township Toms River Township Berkeley Township

Sale Price N/A $400,000 $375,000 $465,000 $465,000 $595,000Date of Sale N/A 3/1/2017 4/15/2016 2/10/2015 2/10/2015 ListingLand Area SF 595,901 101,495 98,881 122,404 122,404 149,411Land Area in Acres 13.680 2.330 2.270 2.810 2.810 3.430Primary Frontage/Feet 843.70 206.20 247.50 340.10 340.10 300.00Front Foot Per Acre 61.67 88.50 109.03 121.03 121.03 87.46Topography Level Level Level Gently rolling Level LevelZoning C-2/V and R-A5 LI LI RHB RHB HBShape Irregular Rectangular Rectangular L-Shaped Flag Irregular

Sale Price N/A $400,000 $375,000 $465,000 $465,000 $595,000Land Acres 13.680 2.330 2.270 2.810 2.810 3.430Unadjusted Price/Acre N/A $171,674 $165,198 $165,480 $165,480 $173,469



LAND SALES ANALYSIS AND CONCLUSIONS (CONT.)

After analyzing each sale and making appropriate adjustments we have placed equal weight on all of thesales. We have concluded a unit value for the subject’s 13.68 acre site as follows:

A summary of the Cost Approach is presented on the following page.

SUMMARY OF COST APPROACH

Costs were derived from Marshall & Swift Valuation Manual. Depreciation based on age-life method.

Lot 24 - is a 1.77 acre parcel that is improved with a 1,008 square foot home. There is also a right of waythat runs through the north side of the site. The highest and best use of the site is to raze the currentimprovement and to use the site to expand the parking from the adjacent parcel or use the land for futuredevelopment. The value of this property is in the land and we have concluded a value of $180,000,(rounded) for Lot 24.

Land Value ConclusionSubject Site 13.68 AcresIndicated Unit Value $100,000 per AcreIndicated Value $1,368,000Rounded $1,370,000

Replacement Cost SummaryTotal Per SF

Building Base Cost $2,562,675 $148.82Site Improvement Costs $3,218,281 $186.89Total Replacement Cost Before Profit $5,780,956 $335.71Developer's Profit at 10% of Building Cost and Site Improvement $578,096 $33.57Replacement Cost New $6,359,052 $369.28

Less Accrued DepreciationPhysical Deterioration

Curable (Deferred Maintenance) $0 $0.00Incurable Effective Age Economic Life % of Depreciation Building Improvement 10 50 20% ($563,789) ($32.74) Site Improvements 5 15 33% ($1,180,036) ($68.53)

Total Physical Deterioration ($1,743,825) ($101.27)

Functional Obsolescence $0 $0.00External Obsolescence $0 $0.00Total Accrued Depreciation of Improvements ($1,743,825) ($101.27)

Total Depreciated Cost of Improvements $4,615,227 $268.02

Plus Land Value $1,370,000 $79.56Subtotal $5,985,227 $347.57

Indicated Value By The Cost Approach $5,985,227 $347.57Rounded $5,990,000 $347.85



SALES COMPARISON APPROACH – IMPROVED SALES

The Sales Comparison Approach is based on the premise that the informed, prudent and rationalpurchaser (investor or user) will pay no more for a property than the cost to him of acquiring a similarcompetitive property with the same utility as of the valuation date. The approach is predicted on theassumption that there is, in fact, an active market for the type of property being appraised; and that the dataon recent sales prices of similar competitive properties on the same market, representing bona fide arm'slength transactions, are an appropriate guide to the market value of the subject property.

COMPARABLE SALES ANALYSIS AND CONCLUSIONS

In the sales comparison approach we have valued the restaurant based on a one acre site and then addedthe value of the remaining land and buildings. Several sales were researched from the marketplace. Thesales utilized represent the most comparable available. Each of the comparable sales differed ascompared to the subject and required adjustments. Factors of adjustment include property rights,financing, special conditions, market conditions, location, size, condition and utility.

Each of the sales differed as compared to the subject and required adjustments. After analyzing each saleand making appropriate adjustments we have placed equal weight on all the sales used and haveconcluded a unit value for the restaurant as follows:

Refer to the following for our sales summary and adjustment grid.

Subject Sale # 1 Sale # 2 Sale # 3 Sale # 4Property Name Calloway's Fromagerie Sapore Italiano The Mill Lakeside ManorAddress 595-605 Route 9 26 Ridge Road 921 and 1001 Arnold Avenue 416 South Broadway 1309 Ocean Road

City Eagleswood Township Rumson Borough Point Pleasant Borough West Cape May Borough Spring Lake Heights and WallTownship

SF of GBA 8,178 6,405 3,142 4,057 18,000Year Constructed 2001 1900 1956 1875 1938Condition Average Average Average Average AverageSpecific Use Amusement Facility Restaurant Restaurant Restaurant RestaurantSite - Acres 1.0000 0.7000 0.4971 0.4059 3.1200Land to Building Ratio 5.33 4.76 6.89 4.36 7.55Sale Price N/A $1,440,000 $644,500 $1,000,000 $4,400,000Date of Sale N/A 4/1/2016 12/5/2016 1/25/2017 1/31/2017Adjusted Price/SF of GBA N/A $224.82 $205.12 $246.49 $244.44

Subject Property 8,178 Gross Building AreaIndicated Unit Value $190 per SFIndicated Value $1,553,820Rounded $1,555,000

Indicated Value



SUMMARY OF COMPARABLE SALES AND ADJUSTMENT GRID

Subject Sale # 1 Sale # 2 Sale # 3 Sale # 4Property Name Calloway's Fromagerie Sapore Italiano The Mill Lakeside ManorAddress 595-605 Route 9 26 Ridge Road 921 and 1001 Arnold Avenue 416 South Broadway 1309 Ocean Road

City Eagleswood Township Rumson Borough Point Pleasant Borough West Cape May Borough Spring Lake Heights and WallTownship

SF of GBA 8,178 6,405 3,142 4,057 18,000Year Constructed 2001 1900 1956 1875 1938Condition Average Average Average Average AverageSpecific Use Amusement Facility Restaurant Restaurant Restaurant RestaurantSite - Acres 1.0000 0.7000 0.4971 0.4059 3.1200Land to Building Ratio 5.33 4.76 6.89 4.36 7.55Sale Price N/A $1,440,000 $644,500 $1,000,000 $4,400,000Date of Sale N/A 4/1/2016 12/5/2016 1/25/2017 1/31/2017Adjusted Price/SF of GBA N/A $224.82 $205.12 $246.49 $244.44AdjustmentsProperty Rights Similar Similar Similar SimilarProperty Rights 0.00% 0.00% 0.00% 0.00%Adjusted Price/SF $224.82 $205.12 $246.49 $244.44

Financing Cash Equiv. Cash Equiv. Cash Equiv. Cash Equiv.Financing 0.00% 0.00% 0.00% 0.00%Adjusted Price/SF $224.82 $205.12 $246.49 $244.44

Conditions of Sale Similar Similar Similar SimilarConditions of Sale 0.00% 0.00% 0.00% 0.00%Adjusted Price/SF $224.82 $205.12 $246.49 $244.44

Market Conditions Apr-16 Dec-16 Jan-17 Jan-17Market Conditions 0.00% 0.00% 0.00% 0.00%Adjusted Price/SF $224.82 $205.12 $246.49 $244.44Other AdjustmentsLocation Superior Superior Superior SuperiorLocation -20.00% -10.00% -10.00% -20.00%Size Similar Superior Superior InferiorSize 0.00% -10.00% -10.00% 10.00%Condition Similar Similar Similar SimilarCondition 0.00% 0.00% 0.00% 0.00%Land/Building Ratio Similar Similar Similar SuperiorLand/Building Ratio 0.00% 0.00% 0.00% -5.00%Functional Similar Similar Similar SimilarFunctional 0.00% 0.00% 0.00% 0.00%Other Similar Similar Similar SimilarOther 0.00% 0.00% 0.00% 0.00%

Adjustments to Adjusted Price/UnitNet % Adjustments -20.0% -20.0% -20.0% -15.0%Net $ Adjustments -$44.96 -$41.02 -$49.30 -$36.67Gross % Adjustments 20.0% 20.0% 20.0% 35.0%Gross $ Adjustments $44.96 $41.02 $49.30 $85.55Adjusted Price/SF $179.86 $164.10 $197.19 $207.77



SALES COMPARISON APPROACH VALUE CONCLUSION

$1,555,000$665,620

$2,038,245$1,268,000$5,526,865

$5,526,865$5,525,000

TotalRounded

Value Via Sales Comparison Approach (Restaurant)

Land Value (12.68 acres)Subtotal

Depreciated Value of Other BuildingsDepreciated Value of Site Improvements



CERTIFICATIONTony F. Kamand Jr., MAI and Lisa Laurence certify to the best of their 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 our personal, impartial, unbiased professional analyses, opinions and conclusions.

3. We have no present or prospective interest in the property that is the subject of this report, and we have no personalinterest with respect to the parties involved.

4. We have no bias with respect to the property that is the subject of this report or to the parties involved with thisassignment.

5. We will maintain confidentiality and privacy of customer/client information obtained during the course of thisassignment.

6. Our engagement in this assignment was not contingent upon the development or reporting of a predetermined value ordirection in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulatedresult, or the occurrence of a subsequent event directly related to the use of this appraisal.

7. Our compensation for the preparation of this report is not in any way contingent upon the reporting of a predeterminedvalue or direction in value that favors the cause of the client, or a minimum valuation, the attainment of a stipulatedresult, the approval of a loan, or the occurrence of a subsequent event.

8. Our analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with therequirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the AppraisalInstitute and the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation.

9. We have made a personal inspection of the property that is the subject of this report.

10. No one provided significant professional assistance to the undersigned in the preparation of the analyses, conclusionsand opinions concerning real estate that are set forth in this appraisal report. Tony Kamand Jr., MAI takes fullresponsibility for any assistance relied upon by a professional who did co-sign this report.

11. We comply with the Competency Provision in USPAP as adopted in FIRREA and have sufficient education andexperience to perform the appraisal of the subject property.

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

13. We have not performed any services in regard to the subject property within the prior three years, as an appraiser or inany other capacity.

14. The undersigned will be responsive to any inquiries during any review process that are part of this assignment. Inaddition, if contacted by the client’s loan production staff (if applicable) we will immediately direct the inquiry to theclient’s appraiser or their designee of said inquiry.

15. As of the date of this report, Tony F. Kamand Jr. has completed the requirements under the continuing educationprogram of the Appraisal Institute, and is currently a state certified general real estate appraiser in the state in whichthe subject of this report is located.

Tony F. Kamand Jr., MAI Lisa LaurenceNJ Certified General Real Estate Appraiser, No. RG-668 NJ Certified General Real Estate Appraiser, Certification No. RG-1874



UNDERLYING ASSUMPTIONS & LIMITING CONDITIONS

This specific appraisal report is subject to the following underlying assumptions and limiting conditions:

1. No responsibility is assumed for the legal description provided or for matters pertaining to legal or title considerations. Title to theproperty is assumed good and marketable unless otherwise stated.

2. There are no existing judgments or pending or threatened litigation, which could affect the value of the property.

3. The property is appraised free and clear of any liens and encumbrances unless otherwise stated.

4. Responsible ownership and competent property management are assumed.

5. The information furnished by others is believed to be reliable, but no warranty is given for its accuracy.

6. All engineering studies are assumed correct. Any illustrative material in this report is included only to help the reader visualize theproperty.

7. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or lessvaluable. No responsibility is assumed for such conditions or for obtaining the engineering studies that may be required to discoverthem.

8. It is assumed that the property is in full compliance with all federal, state, and local environmental regulations and laws unless thelack of compliance is stated, described, and considered in the appraisal report.

9. It is assumed that the property conforms to all applicable zoning and use regulations and restrictions unless nonconformity has beenidentified, described and considered in the appraisal report.

10. It is assumed that all required licenses, certificates of occupancy, consents, and other legislative or administrative authority from anylocal, state, or national government or private entity or organization have been or can be obtained or renewed for any use on whichthe value estimate contained in this report is based.

11. It is assumed that the use of the land and improvements is confined within the boundaries or property lines of the property describedand that there is no encroachment or trespass unless noted in the report.

12. Unless otherwise stated in this report, the existence of hazardous materials, which may or may not be present on the property, wasnot observed by the appraiser. The appraiser has no knowledge of the existence of such materials on or in the property. Theappraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, urea-formaldehydefoam insulation, and other potentially hazardous materials may affect the value of the property. The value estimate is predicated onthe assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed forsuch conditions or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert inthis field, if desired.

13. Any allocation of the total value estimated in this report between the land and the improvements applies only under the statedprogram of utilization. The separate values allocated to the land and buildings must not be used in conjunction with any otherappraisal and are invalid if so used.

14. An appraisal is inherently subjective and represents only an estimate of a property's fair market value.

15. No environmental impact studies were conducted in conjunction with this appraisal, and our value opinions are subject to revisionbased upon any such studies. If any environmental impact statement is required by law, the appraisal assumes that such statementwill be favorable and will be approved by the appropriate regulatory bodies.

16. Any income and expense estimates contained in this appraisal are used only for the purpose of estimating current fair market valueand do not constitute predictions of future operating results.

17. Possession of this report, or a copy thereof, does not carry with it the right of publication.

18. The appraiser, because of this appraisal, is not required to give further consultation or testimony or to attend in court with referenceto the property in question unless arrangements have been previously made.



UNDERLYING ASSUMPTIONS & LIMITING CONDITIONS (CONT.)19. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraiser, or the firm

with which the appraiser is connected) shall be disseminated to the public through advertising, public relations, news, sales, or othermedia without the prior written consent and approval of the appraiser.

20. Any value estimates provided in the report apply to the entire property, and any pro-ration or division of the total into fractionalinterests will invalidate the value estimate, unless such pro-ration or division of interests has been set forth in the report.

21. Any proposed improvements are assumed to have been completed unless otherwise stipulated; any construction is assumed toconform with the building plans referenced in the report.

22. The forecasts, projections, or estimates contained herein are based on current market conditions, anticipated short term supply anddemand factors, and a continued stable economy. These forecasts are, therefore, subject to changes with future conditions.

23. We reserve the right to require, as a condition to our rendering an opinion as to value, the engagement of professional experts incertain disciplines. The engagement of any such expert and the compensation of such expert shall be solely the responsibility of theclient.

24. The value found herein is subject to these and to any other assumptions or conditions set forth in the body of this report but whichmay have been omitted from these Underlying Assumptions and Limiting Conditions.

25. This appraisal is made with the understanding that the subject can obtain a negative declaration from the Department ofEnvironmental Protection following the regulations and requirements of the Environmental Cleanup Responsibility Act of 1983(ECRA), as amended. This act requires as a pre-condition of any cessation of operation or the transfer of real property, which usedor stored regulated hazardous substances, the testing, cleanup and disposal of any such material. The appraisers are not qualifiedto determine the existence of any such hazardous material and therefore, have expressed a value of the subject property as if freeand clear of any such substances.

26. In conjunction with the preceding paragraph, the appraisers have not been apprised of, nor are they qualified to ascertain, theexistence of Radon, a radioactive gas that occurs naturally in the soil of certain identified areas. This gas, in concentrated form hasbeen shown detrimental and its existence would create a negative impact on value. As in the above instance, the value estimateassumes the subject is free and clear of Radon gas.

27. The Americans with Disabilities Act (ADA) became effective January 26, 1992. We have not made a specific compliance surveyand analysis of this property to determine whether it is in conformity with the various detailed requirements of the ADA. It is possiblethat a compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that theproperty is not in compliance with one or more of the requirements of the act. If so, this fact could have a negative effect upon thevalue of the property. Since we have no direct evidence relating to this issue, we did not consider possible noncompliance with therequirements of the ADA in estimating the value of the subject.

28. This appraisal report is intended to comply with the reporting requirements set forth under Standards Rule 2-2 of the UniformStandards of Professional Appraisal Practice for a restricted appraisal report. As such, it presents only limited discussions of thedata, reasoning and analyses that were used in the appraisal process to develop the appraiser’s opinion of value. The depth ofdiscussion contained in this report is specific to the needs of the client and for the reports intended use. The appraiser is notresponsible for unauthorized use of this report.

The Appraisal Institute conducts a continuing education program for its designated members. Tony F. Kamand Jr.,MAI is currently certified under this program.

ADDENDA


EXTERIOR PHOTOGRAPHS OF SUBJECT PROPERTY

Front of subject facing south

Rear view of subject



Front view of subject south

Pro shop and driving range



Driving range facing west

Storage shed



Mini golf

Bumper car track



Go kart track

Go kart track



Miniature golf course

Miniature golf course



Parking lot

Parking lot



View along Route 9 facing north

View along Route 9 facing south


INTERIOR AND ADDITIONAL PHOTOGRAPHS OF SUBJECT PROPERTY

Bar area Bar area

Lavatory Dining area

Dining area Hostess stand



Security room Lavatory

Dining room Bar

Bar Kitchen



Kitchen Kitchen

Concession area Hot water heaters

Storage


COMPARABLE LAND SALES SUMMARY

Land Sale No 1

Property ID 30363Property Type LandAddress 2302-2310 Lakewood Road (Rt. 9)

Toms River Township, New Jersey 08755

Sale Date 3/1/2017Sale Price $400,000Seller Rodolfo and Yason V JaravataBuyer Yehoshua WertzbergerDeed Reference 16685/1779

Land Acres / SF 2.330 / 101,495Primary Frontage 206.20Zoning LIShape RectangularTopography LevelUtilities All public at street

Price / Acre $171,674Price / SF $3.94Price / FF $1,939.86

There is approximately 40% wetlands on the property.

Land Sale No 2Property ID 30364Property Type LandAddress 2290-2298 Lakewood Road (Rt.9)


Sale Date 4/15/2016Sale Price $375,000Seller Mark Properties LLCBuyer Zebra Holdings II LLCDeed Reference 16394/167

Land Acres / SF 2.270 / 98,881Primary Frontage 247.50Zoning LIShape RectangularTopography LevelUtilities All public at street


There is approximately 30% wetlands on the property.


Land Sale No 3Property ID 23392Property Type LandAddress 1815-1823 Lakewood Road


Sale Date 2/10/2015Sale Price $465,000Seller Kaier, JaneBuyer DCM Properties LLCDeed Reference 16020/00492

Land Acres / SF 2.810 / 122,404Primary Frontage 340.10Zoning RHBShape L-ShapedTopography Gently rollingUtilities All public


Land Sale No 4

Property ID 20478Property Type LandAddress 1815-1823 Lakewood Road


Sale Date 2/10/2015Sale Price $465,000Seller Jane KaierBuyer DCM Properties, LLCDeed Reference 16020/00492

Land Acres / SF 2.810 / 122,404Primary Frontage 340.10Zoning RHBShape FlagTopography LevelUtilities All public



Land Sale No 5Property ID 30430Property Type LandAddress 155 Route 9

Berkeley Township, New Jersey 08721

Sale Date 9/6/2017Sale Price $595,000Seller Rudolph and Sandra Rinderer Jr.

Land Acres / SF 3.430 / 149,411Primary Frontage 300.00Zoning HBShape IrregularTopography LevelUtilities Al public


COMPARABLE IMPROVED SALES SUMMARY

Improved Sale 1

Property ID 9784Property Type RetailProperty Name FromagerieAddress 26 Ridge Road

Rumson Borough, New Jersey 07760

Sale Date 4/1/2016Sale Price $1,440,000Seller 26 Ridge Road, LLCBuyer PJ Sansone Sr Realty, LLCDeed Reference 9160 / 4128

Land Acres 0.700GBA / SF 6,405Rentable Area/SF 6,405Building Condition AverageLand/Building Ratio 4.76

Price/SF - GBA $224.82Price/Unit $1,440,000

This was a real estate only sale.


Improved Sale 2

Property ID 30473Property Type RetailAddress 921 and 1001 Arnold Avenue

Point Pleasant Borough,New Jersey 08742

Sale Date 12/5/2016Sale Price $644,500Seller Capt'n Ed's Place, Inc.Buyer Point Pleasant Hospitality LLCDeed Reference 16617/1833


Price/SF - GBA $205.12

Improved Sale 3

Property ID 28620Property Type RetailProperty Name Sapore ItalianoAddress 416 South Broadway

West Cape May Borough,New Jersey 08204

Sale Date 1/25/2017Sale Price $1,000,000Seller BB 416 Broadway Ventures LLCBuyer Perparim Bici and Gabriella Alejandra BustosDeed Reference 3717/409


Price/SF - GBA $246.49Price/Unit $7,634


Improved Sale 4

Property ID 30772Property Type RetailProperty Name The Mill Lakeside ManorAddress 1309 Ocean Road

Spring Lake Heights and Wall TownshipNew Jersey 07762

Sale Date 1/31/2017Sale Price $4,400,000Seller T & G Realty, LLCBuyer JDE Spring Lake, LLCDeed Reference 92140/49200


Price/SF - GBA $244.44


DEFINITIONS OF SOME COMMON APPRAISAL TERMINOLOGYSource: The Dictionary of Real Estate Appraisal

Absorption period - The actual or expected period of time required from when a property is initially offered for purchase or use by its eventualusers until all portions have been disposed of by sale or until stabilized occupancy has been achieved.

Accrued depreciation - The difference between an improvement’s reproduction or replacement cost and its market value as of the date ofappraisal.

Ad valorem tax - a real estate tax based on property value.

Assessed value - the value according to the tax rolls in ad valorem taxation.

Band of investment - A technique in which cash flow rates attributable to components of a capital investment are weighted and combined toderive a weighted average rate attributable to the total investment.

Base rent - the minimum rent stipulated in a lease.

Basis point - one one-hundredth of one percentage point.

BOMA standard - the standard method of floor measurement for office buildings as defined by the Building and Officers Managers Association.

Bundle of rights theory - the concept that compares property ownership to a bundle of sticks with each stick representing a district and separateright of the property owner, e.g., the right to use real estate, to sell it, to lease it, to give it away, or to choose to exercise all or none of theserights.

Capitalization Rate - any rate used to convert income into value.

Cash equivalent - a price expressed in terms of cash, as distinguished from a price expressed totally or partly in terms of the face amounts ofnotes or other securities that cannot be sold at their face amounts.

Cash flow analysis - a study of the anticipated movement of cash in or out of real estate.

Cash on cash - the ratio of the annual equity income to the equity investment. Also called the equity capitalization rate of equity dividend rate.

Common Area - The total area within a property that us not designated for sale or rental, but is available for common use by all owners, tenantsor their invitee’s, e.g., parking and its appurtenances, malls, sidewalks, landscaped areas, public toilets and service facilities.

Common Area Maintenance (CAM) - expenses of operating and maintaining common areas.

Concession - an inducement to a tenant to lease space, usually in the form of free rent, additional tenant improvement allowance, movingcosts, etc.

Consumer Price Index (CPI) - a measurement of the cost of living determined by the U.S. Bureau of Labor Statistics.

Contract rent - the actual rental income specified in a lease.

Debt coverage ratio - the ratio of net operating income to annual debt service (DCR = NOI/IM).

Deferred maintenance - curable, physical deterioration that should be corrected immediately, although work has not commenced.

Development right - the right to build on or beneath a property, subject to local zoning, building codes, etc.

Direct capitalization - the method used to convert an estimate of a single year’s income expectancy or an average of several years’ incomeexpectancies into an indication of value in one direct step, either by dividing the income estimate by an appropriate rate or by multiplying theincome estimate by an appropriate factor.

Discounted cash flow analysis - a set of procedures in which the quantity, variability, timing, and duration of periodic income, as well as thequantity and timing of reversions, are specified and discounted to a present value or a specified yield.

Discount rate - a rate of return commensurate with the perceived risk used to convert future payments or receipts into present value.

Easement - an interest in real property that conveys use, but not ownership, of a portion of an owner’s property.

Easement appurtenant - an easement that is attached to, benefits, and passes with the conveyance of the dominant estate.

Economic age-life method - the method of estimating accrued deprecation in which the ratio of a building’s effective age to its total life isapplied to the current cost of the improvements to obtain a lump sum deduction.


DEFINITIONS OF SOME COMMON APPRAISAL TERMINOLOGYEconomic life - the period over which improvements to real property contribute to property value.

Effective age - the age indicated by the condition and utility of a structure.

Effective gross income (EGI) - the anticipated income from all operations of real property adjusted for vacancy and collection loss.

Effective tax rate - the ratio between a property’s annual property tax and it’s market value; the tax rate times the assessed value divided by themarket value; the official tax rate times the assessment ratio.

Equity capitalization (dividend) rate - an income rate that reflects the relationship between a single’s year pre-tax cash flow expectancy and theequity investment.

Equity yield rate - an annualized rate of return on equity capital, as distinguished from the rate of return on debt capital or interest.

External obsolescence - an element of accrued depreciation; a defect, usually incurable, caused by negative influences outside a site.

Exposure time – the estimated length of time the property interest being appraised would have been offered on the market prior to thehypothetical consummation of a sale at market value on the effective date of the appraisal. Exposure time is always presumed to occur prior tothe effective date of the appraisal.

Extraordinary Assumptions - an assumption, directly related to a specific assignment, which, if found to be false, could alter the appraiser'sopinions or conclusions. Extraordinary assumptions presume as fact otherwise uncertain information about physical, legal, or economiccharacteristics of the subject property; or about conditions external to the property such as market conditions or trends; or about the integrity ofdata used in an analysis.

Fee simple estate - absolute ownership unencumbered by any other interest or estate subject to only the four powers of government.

Functional obsolescence - a defect caused by a defect in the structure, materials, or design.

Hypothetical conditions – that which is contrary to what exists but is supposed for the purpose of analysis. Hypothetical conditions assumeconditions contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to theproperty, such as market conditions or trends; or about the integrity of data used in an analysis.

Internal rate of return - a measurement of investment performance; the rate of return on capital that is generated within an investment over aperiod of ownership.

Land-to-building ratio - the proportion of land area to gross building area.

Leased fee estate - an ownership interest held by a landlord with the right of use an occupancy conveyed by lease to others.

Marketing time - the time it takes an interest in real property to sell on the market sub-sequent to the date of an appraisal.

Market rent - the rental income that a property would most probably command in the open market.

Net operating income - the actual or anticipated net income remaining after deducting all operating expenses from effective gross income, butbefore deducting mortgage debt service and book depreciation.

Potential gross income - the total income attributable to real property at full occupancy before deduction for vacancy and operating expenses.

Present value - the value of a future payment or series of future payment discounted to the current date or to time period zero.

Rentable Area - This is the usable area of an office area, with its associated share of both floor common area and building common area addedon. Rentable area is determined by multiplying the Usable area by the combined R/U ratio.

R/U Ratio - The combined conversion factor, obtained by multiplying the Floor R/U by the Building R/U ratios, which when applied to anyUsable area, gives the Rentable area of that office or store area.

Terminal capitalization rate - the rate used to convert income into an indication of the anticipated value of the subject real property at the end ofthe holding period.

Vacancy and collection loss - an allowance for reduction in potential income attributable to vacancies, tenant turnover, and nonpayment of rent.


PROFESSIONAL QUALIFICATIONS OF

TONY F. KAMAND JR., MAIREAL ESTATE VALUATION AND CONSULTING (1986 TO PRESENT)

Real estate valuation of all types of improved and unimproved real property. Properties have been located in NewJersey, New York, California, Illinois, Virginia, North Carolina, Georgia, Delaware, Maryland and Pennsylvania withextensive experience in the following properties:

Apartments LIHTC Projects HUD ProjectsRent Comparability Studies Healthcare Properties Retail Centers

Industrial Office Special Purpose Properties

PROFESSIONAL LICENSES AND CERTIFICATIONS

State of New Jersey - Certified General Real Estate Appraiser - RG-00668State of New York - Certified General Real Estate Appraiser – 46000026069State of Pennsylvania - Certified General Real Estate Appraiser - GA001862State of Delaware - Certified General Real Estate Appraiser - 143010State of Maryland - Certified General Real Estate Appraiser – 27830

PROFESSIONAL AFFILIATIONS

MAI Member of the Appraisal InstitutePast President (2005, 2011 and 2012) - Appraisal Institute, Central New Jersey ChapterPast Treasurer (1995 to 2004) - Appraisal Institute, Central New Jersey Chapter

QUALIFIED AS EXPERT WITNESS

Federal Bankruptcy Court, New Jersey Tax Court, New York Tax Court, Various County Tax Boards and ZoningBoards

EDUCATION

Bloomfield College - B.S. in Business Administration

The Appraisal InstituteReal Estate Appraisal Principles Residential ValuationBasic Valuation Standards of Ethics & Professional PracticeCapitalization Theory/Techniques Part A Capitalization Theory/Techniques Part BCase Studies in Real Estate Valuation Report Writing in Real Estate Valuation

Additional Courses/SeminarsGovernor’s Conference - Multi-Family Housing, HUD Third Party Technical Training for MAP, The Economy and Rates,Urban Land Institute - Improving Shopping Center Performance, Real Estate Commercial Markets, Appraisal Institute -Appraising Retail Properties, Argus Real Estate Analysis Software, Numerous other seminars and courses

REPRESENTATIVE CLIENTS

Banks, Attorneys, Developers, Government Agencies, Fortune 500 Companies, Insurance Companies andInstitutional Investors.


PROFESSIONAL QUALIFICATIONS OF

LISA LAURENCE

REAL ESTATE VALUATION AND CONSULTING (1988 TO PRESENT)

Real estate valuation of all types of improved and unimproved real property. Properties have been mainlylocated in New Jersey with extensive experience in the following:

Apartments Shopping Centers CondominiumsMotels/Hotels Health Care Facilities Planned Unit Developments

Assisted Living Mixed Use Industrial

PROFESSIONAL LICENSES AND CERTIFICATIONS

State of New Jersey - Certified General Real Estate Appraiser #1874

Independent Fee Appraisers (IFA) - Candidate

EDUCATION

Bachelor of Business Administration – Real Estate FinanceTexas Tech University, Lubbock, Texas

USPAP Update – Standards & Ethics for Professionals (2011)Cost Approach (2011)Apartment Valuation (2011)Industrial Buildings (2011)Subdivision Analysis (2010)Environmental Appraising (2010)HUD Housing (2009)Mortgage Fraud (2008)Construction Trends (2005)Income Approach to Value (2005)Report Writing and Valuation Analysis (1990)Case Studies in Real Estate Valuation (1990)Capitalization Theory and Techniques, Part A (1989) and Part B (1989)Basic Valuation Procedures (1988)Standards of Professional Practice (1987)Real Estate Appraisal Principles (1986)

REPRESENTATIVE CLIENTS

Banks, Attorneys, Accountants, Developers, Government Agencies, Fortune 500 Companies, Insurance Companies,and Institutional Investors.

Documents

TKR TONY KAMAND REALTY LLC - LoopNet · 71 Broadway, Level 2B, #108 New York, New York 10006 73 Old Dublin Pike, Suite 10, Doylestown, Pennsylvania 18901 *All replies to Toms River