CASE SUMMARY SHEET EFFECTIVE DATE FOR VALUATION: January 1, 2021 PURCHASE PRICE: $7,900,000 Improvem ents $5,530,000 Land $2,370,000 LONG-TERM FINANCING Loan Value 00% of purchase price Amortization Period 20 years Term 5 years Interest Rate ([2) 4.25% Payments Monthly. rounded up to the next higher dollar Minimum DCR 1.2 There are no prepayment penalties on the loan. RENTAL INCOME PER ANNUM {Base Year - 21021} Market rents increase at 2% per annum. EXPENSES [Base Year - 2021) Property Taxes $1 15,000 CAM Costs $125,000 AL LOWANCES Vacancy and Collection Allowance 3.7% Structural Allowance 2.0% of effective gross Income COMMISSION PAYABLE AND TENANT INDUCEMENTS Commission - New Tenants Only Commission of 5% of the base rent In Year 1, 3% per annum thereafter over the term of the lease. Tenant Improvements Responsibility of the tenants Free Rent - New Tenants 5 months' net rent free at beginning of lease Free Rent - Renewing Tenants 2 months' net rent free at beginning of lease REQUIRED RATE OF RETURN (AFTER-TAX) ON EQUITY: 9.5% MARGINAL INCOME TAX RATE: 48% The investors will qualify for tax on one-half of any capital gains. CAPITAL COST ALLOWANCE: 4% (Class 1) The investors will take the maximum possible CCA. MARKET OVERALL CAPITALIZATION RATE: 7% REVERSION RATE: In consideration of current market expectations and in discussion with a number of local and institutional purchasers who would be interested in acquiring a property similar to the subject. it is appropriate to add a risk premium of 0.5% to the market overall capitalization rate in determining the reversion value for the subject property. CLOSING COSTS: A4% commission of gross sale price is paid on sale