Please answer & show work for questions a-k below based on the following assumptions: Offering for Industrial Warehouse, a 195K SF,100% leased (single tenant) warehouse. ASSUMPTIONS: Purchase Price $24 Mil Terms: 4 Mil Cash with balance financed at 8.75%, 25 yrs level pmt amortized monthly Prepayment penalty is 1% of balance if prepaid within the first 4 years Base year data (2018):

REVENUE Rental Income $2,743,000 OPERATING EXPENSES Real Estate Taxes $137,150 Labor Costs $327,788 HVAC $181,062 Repairs & Maintenance $175,000 Hazard Insurance $72,000 Total $893,000 NET OPERATING INCOME $1,850,000

Holding Period Assumptions: Purchase Date: 12/31/2018 Rental Income: 5% increase/yr Operating Expenses (ALL): 4% increase/yr

Escalation Income (DUE TO OWNER): Real Estate Taxes: Increase 3% per yr from 2018 Base Yr Expense; Overage ONLY (difference between a given yr & previous yr) is due to the owner Labor: Increase 4% from 2018 Base Yr Expense; Overage ONLY (difference between a given yr & previous yr) is due to the owner Depreciable Basis: 80% of Purchase Price Sales Date: 12/31/23 (Sales Proceeds are received 12/31/23) Sales Cap Rate: 9.5% (Using 2024 NOI) Selling Costs: 8.0% of Selling Price (Includes Commissions) Marginal Tax Rate: 39.6% L-T Capital Gains Tax Rate:20% Depreciation Recapture Tax Rate:25.0% * In any operational years where a "Taxable Loss" is encountered, the calculation for the TAX (TAXSAVINGS)should be treated as a TAX REFUND, and "taken in" during the same tax year as the loss.

QUESTIONS a. What is the Net Sale Price in 2023? b. What is the Before-Tax Cash Flow (BTCF) in 2019? c. What is the After-Tax Cash Flow (ATCF) in 2019? d. What is the Margin of Safety (excluding any sale dollars) in 2023? e. What is the Cash on Cash Return (After-Tax) in 2019-2023? f. What is the Net After-Tax Sales Proceeds? g. What is the Pre-Tax IRR for this investment (both Leveraged and Unlevered)? h. What is the After-Tax IRR for this investment (both Leveraged and Unlevered)? i. What is the NPV of this investment using a 12% discount rate (before tax)? What is the Pre-Tax IRR for this investment (both Leveraged and Unlevered)? j. What is the NPV of this investment using a 12% discount rate (after tax)? k. Should you purchase this asset? Why or why not?

Please answer & show work for questions a-k below based on the following assumptions: Offering for Industrial Warehouse, a 195K SF, 100% leased (single tenant) warehouse. ASSUMPTIONS: Purchase Price 24 Mil Terms: 4 Mil Cash with balance financed at 8.75%,25 yrs level pmt amortized monthly Base Prepayment penalty is 1% of balance if prenaid within the firet 4 vraaro Hold * In any operational years where a "Taxable Loss" is encountered, the calculation for the TAX (TAX SAVINGS) should be treated as a TAX REFUND, and "taken in" during the same tax year as the loss. QUESTIONS a. What is the Net Sale Price in 2023? b. What is the Before-Tax Cash Flow (BTCF) in 2019? c. What is the After-Tax Cash Flow (ATCF) in 2019? d. What is the Margin of Safety (excluding any sale dollars) in 2023? e. What is the Cash on Cash Return (After-Tax) in 2019-2023? f. What is the Net After-Tax Sales Proceeds? g. What is the Pre-Tax IRR for this investment (both Leveraged and Unlevered)? h. What is the After-Tax IRR for this investment (both Leveraged and Unlevered)? i. What is the NPV of this investment using a 12% discount rate (before tax)? j. What is the NPV of this investment using a 12% discount rate (after tax)? k. Should you purchase this asset? Why or why not? Please answer & show work for questions a-k below based on the following assumptions: Offering for Industrial Warehouse, a 195K SF, 100% leased (single tenant) warehouse. ASSUMPTIONS: Purchase Price 24 Mil Terms: 4 Mil Cash with balance financed at 8.75%,25 yrs level pmt amortized monthly Base Prepayment penalty is 1% of balance if prenaid within the firet 4 vraaro Hold * In any operational years where a "Taxable Loss" is encountered, the calculation for the TAX (TAX SAVINGS) should be treated as a TAX REFUND, and "taken in" during the same tax year as the loss. QUESTIONS a. What is the Net Sale Price in 2023? b. What is the Before-Tax Cash Flow (BTCF) in 2019? c. What is the After-Tax Cash Flow (ATCF) in 2019? d. What is the Margin of Safety (excluding any sale dollars) in 2023? e. What is the Cash on Cash Return (After-Tax) in 2019-2023? f. What is the Net After-Tax Sales Proceeds? g. What is the Pre-Tax IRR for this investment (both Leveraged and Unlevered)? h. What is the After-Tax IRR for this investment (both Leveraged and Unlevered)? i. What is the NPV of this investment using a 12% discount rate (before tax)? j. What is the NPV of this investment using a 12% discount rate (after tax)? k. Should you purchase this asset? Why or why not