Grand Rapids-StrategicEvidencel-2026-MI-Protest.pdf
Grand Rapids Ind Properties LLC Petitioner Vs. City Of Grand Rapids Respondent · 26-001570-TT
Text extracted from the reviewed PDF, organized by page. OCR and reading order may contain errors; confirm details in the PDF below.
Page 1
STATE OF MICHIGAN GRETCHEN WHITMER DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS MARLON I. BROWN, DPA GOVERNOR LANSING DIRECTOR GRAND RAPIDS IND PROPERTIES LLC (Strategic Law Group) , MICHIGAN TAX TRIBUNAL Petitioner(s) \ MTT Docket No. City of Grand Rapids Assessor's Office Respondent(s) ENTIRE TRIBUNAL PROPERTY TAX PETITION 1. Property Parcel No: 41-18-20-126-001 (If more than one parcel is at issue, attach a completed Multiple Parcel Petition Form addressing all other parcels at issue.) 2. The property identified above is X__real ___ personal. 3. If more than one parcel of real property is under appeal, are the properties contiguous? ___ Yes ___ No. (If no, separate Petitions are required for each non- contiguous parcel.) 4, Are all of the parcels of personal property located on a parcel of real property under appeal? ___ Yes ___ No. (If no, separate Petitions are required for each parcel of personal property not located on a parcel of real property under appeal.) 5. If parcels of personal property are under appeal, when were the personal property statements filed by parcel number (attach additional page if necessary): 6. The property identified above is classified as Industrial 7. If the assessment or assessments at issue were protested, the protest was made to Respondent's March July December Board of Review. MICHIGAN TAX TRIBUNAL - 611 W. OTTAWA ST., LANSING, MI 48933 - 517-335-9760 PO BOX 30232, LANSING, MI 48909 - Other Carriers: 2407 N. GRAND RIVER AVE., LANSING, MI 48906
Page 2
MTT Docket No. Page 2 of 4 8. 10. 11. 12. 13. 14. If a protest was required and no protest was made, list the separate and specific facts upon which Petitioner relies to invoke the Tribunal’s authority over the assessment or assessments at issue (attach additional page if necessary): If the appeal was not submitted by the deadline for the filing of an appeal for the classification or classifications of the properties at issue (i.e., May 31 or July 31 of the tax year involved), list the separate and specific facts upon which Petitioner relies to invoke the Tribunal’s authority over the assessment or assessments at issue (attach additional page if necessary): The property or properties at issue are located in Kent County. The property or properties’ address is: 1120 SE 36TH ST GRAND RAPIDS, MI 49508 The assessment or assessments at issue were established by the (applicable local governmental unit): City of Grand Rapids Assessor Petitioner's legal residence or principal office address is: 3707 E Southern Ave Mesa, AZ 85206 This appeal involves issues relating to the (check all that are applicable): X the property or properties’ true cash and taxable values the property or properties’ taxable value only If the property or properties’ taxable value is at issue, is there a dispute as to the value of an addition orloss? ___ Yes __ No uniformity of the property or properties’ assessment the property or the properties’ exemption from ad valorem taxation under MCL The tax year(s) at issue are: 2026
Page 3
MTT Docket No. Page 3 of 4 15. If more than the current tax year is being appealed, list the separate and specific facts upon which Petitioner relies to invoke the Tribunal’s authority over the prior tax year or years (attach additional page if necessary): 2026 16. The values for the property identified above as established by Respondent's Board of Review are: Tax Year True Cash Value Assessed Value Taxable Value 2026 35,692,200 17,846,100 14,779,022 17. Petitioner contends that the values for the property identified above are: Tax Year True Cash Value State Equalized Value Taxable Value 2026 17,010,114 8,505,057 8,505,057 18. The values in dispute for the property identified above are: Tax Year True Cash Value State Equalized Value Taxable Value 2026 18,682,086 9,341,043 6,273,965 19. Petitioner requests the following relief (attach additional page if necessary): Given the significant disparity between the income-supported valuation and the current assessment, there appears to be strong support for a reduction in the 2026 assessed market value. The taxpayer is seeking reasonable tax relief to help offset substantial building expenses and elevated operating costs incurred during a financially challenging year. A reduction in the assessed value would more accurately reflect the property’ s current economic condition, income-producing capability, and overall market position 20. List the separate and specific facts upon which Petitioner relies to support the relief requested (attach additional page if necessary): Please see attached income and expense docs/evidence packet (see attached).
Page 4
MTT Docket No. Page 4 of 4 Signature of Bellionc?s Authorized Representative or, if none, Petitioner: = Printed Name of Petitioner's Authorized Representative or, if none, Petitioner: Rebecca Shaver (Strategic Law Group) Email Address: rebecca@strategiclawgroup.com Mailing Address: 3707 E Southern Ave Mesa, AZ 85206 Telephone Number: 480-252-5437 Date: 5/27/2026
Page 5
Agency Authorization Property Tax Matters This Agency Authorization will serve as formal authorization and notification by Glen Una Management Company and associated entities (the “Client”) that Strategic Law Group (“Strategic”) and its attorneys and representatives are hereby granted authority to act on behalf of Client for all property tax matters for the 2026-2028 tax years for the properties and accounts listed on the attached Exhibit A. Specifically, Strategic is delegated full authority to represent Client in filing, signing, negotiating, settling or otherwise dealing with all matters relating to real and personal property tax appeals with the assessor’s office, treasurer’s office and/or any other government office or agency. Furthermore, Strategic is given authority to review, request and obtain copies of any and all information held by the Assessor, Treasurer, or any other government office or agency. An electronic version of this Agency Authorization shall be equivalent to an original authorization and may be used as such. This Agency Authorization will remain in effect until revoked by the Client. When Required, Strategic will provide client with copies of all documents Strategic obtains from any government office or agency, including a copy of protest application. Authorized and Certified by Client: Signature: ____________________________ Date: __________ Name/Title: ___________________________ Phone: _________ Strategic Law Group Representative: Rebecca Shaver_______ 4600 E. Washington St., Suite 300 Phoenix, Arizona 85034 Phone: (480) 252‐2135 Email: rebecca@strategiclawgroup.com 1 Docusign Envelope ID: D83418D3-E1EB-88F7-8199-A515C1A7C178 4/8/2026 Kelly Gardner Vice President of Operations Kelly Gardner
Page 6
Property Name Entity Name Address City State East Empire East Empire Bend, LLC 63065-63085 NE 18th Street Bend Oregon Continental Plaza Continental Green Valley Associates, LLC 210 West Continental Rd Green ValleArizona Dixon Industrial Dixon Industrial Partners LLC 4141 Dixon Street Des MoinesIowa North Washington Denver North Washington, LLC 6425 N. Washington St. Denver Colorado Clive Industrial Clive Iowa Industrial 10400 Hickman, LLC 10400 Hickman Road Clive Iowa San Juan Village San Juan Sacramento, LLC/ Hillside Pointe Associates LLC 3291 Truxel Rd SacramentoCalifornia Ina Meredith West Ina Center Marana Arizona, LLC/ Hillside Pointe Associates LLC 3662 West Ina Road Tucson Arizona Palo Verde Industrial Center 6221 & 6223 S. Palo Verde Tucson, LLC 6221 S Palo Verde Rd Tucson Arizona Deschutes Business Center Deschutes Center Bendor, LLC 20370 Empire Avenue Bend Oregon Calexico Industrial Calexico Industrial, LLC 325 Weakley Road Calexico California Pioneer Plaza Springfield Pioneer Plaza Springfield, LLC 1805 E Pioneer Parkway Springfield Oregon Grand Rapids Commerce Center Grand Rapids Industrial Properties, LLC 1120 36th Street S.E. Grand RapiMichigan Chandler Tech Center Phoenix Industrial 2022, LLC 300 N 56th Street Chandler Arizona Nellis Plaza Nellis Vegas Properties, LLC 305 N Nellis Blvd Las Vegas Nevada Calexico Industrial #2 Calexico Ind. #2, LLC 2361 Portico Blvd Calexico California 2 Exhibit A Docusign Envelope ID: D83418D3-E1EB-88F7-8199-A515C1A7C178
Page 7
1120 SE 36TH ST GRAND RAPIDS, MI Parcel #41-18-20-126-001 Grand Rapids Distribution 1
Page 8
Total Value $/SF 2024 MarketValue 32,235,400 $ 22.60 $ 2024 Taxable Value 13,891,395 $ 2025 Market Value 34,069,000 $ 23.89 $ 2025 Taxable Value 14,322,028 $ 2026 Market Value 35,692,200 $ 25.02 $ 2026 Taxable Value 14,779,022 $ Market Value $/SF 17,010,114 $ / 11.93 $ 8,505,057 $ Value Summary To Whom It May Concern: The following is a history of the assessor's values over the past three years: Income (Actual) - Market Value Based on our analysis, we are requesting the following value for this property: Method Year Income (Actual) - Taxable Value 2
Page 9
1 1120 SE 36TH ST in GRAND RAPIDS 36th St & Steel Case Dr GRAND RAPIDS IND PROPERTIES LLC Year Built: 1957 Net Leaseable Square Feet: 261,362 2,387,524 Acres: 54.81 1.67 2026 Breakdown Value $/SF 35,692,200 $ 25.02 $ The subject property is a 1,426,269-square-foot industrial facility located in Grand Rapids, Michigan, originally constructed in 1957. For the 2026 tax year, the property has been assessed at a market value of $35,692,200 with a taxable value of $14,779,022. Based on the year-end 2025 income and expense statement and the application of a 9.4% market capitalization rate, the indicated market value is approximately $17,010,114, which is substantially below the current assessed market value. During 2025, the property experienced significant operational and capital challenges, including more than $2 million in necessary tenant and building improvements related to loading dock upgrades and replacements. These expenditures were essential to maintain operational functionality and tenant usability within an aging industrial facility competing against newer and more modern industrial properties in the market. The age of the improvements, ongoing capital requirements, and functional obsolescence continue to negatively impact the property’s marketability and overall value. Given the significant disparity between the income-supported valuation and the current assessment, there appears to be strong support for a reduction in the 2026 assessed market value. The taxpayer is seeking reasonable tax relief to help offset substantial building expenses and elevated operating costs incurred during a financially challenging year. A reduction in the assessed value would more accurately reflect the property’s current economic condition, income-producing capability, and overall market position. Executive Summary Property Summary 2026 Total Value: Location: Major Cross Streets: Owner: Land Square Feet: Land/Build/Ratio: Parcel Count: 3
Page 10
4 — — i . I Ii Fe mm— =. oo) i I HH Ji TNE RITES w= FI LAN - -- aia ia [iy a —— - — PE r— Te Se | EET— Gr, LL _— ——l se ee a xo ! Cs at rR TT -W -_ -~ Sa uP = ha i i 15 oi A. GE he vg, “. Le y= SEA iw oo hoz I | =r ts an aK, A <f () ~ ya aly I~ A Ae, op 3 2 yt ow ¥) LE = Fe HE A= UE EN Lhe rk iS oY rec -
Page 11
5 er = Ersof. — phe ec — EERE - hy ve a 1] 1 i] nay ger [=] SE i i ad —_——— oe a wri]
Page 12
6 - SE ad — Pu - HE ~ -_ Ld Tad Ein i a WW | as = REE re | A— — —_— ma aie" Fa Beam il Nl] 1 —— ht if - i fo
Page 13
7 hye Na AE SE ARN TE eo ATT A RR iN A a amg oF. Ta A ot Bl fe p—— rol a vy - ati, ——— se _ g— me —_— == ims i SMINRRGC TT =p f= Ie ad _ TIRE send YN — p— (E== Eald a— pa La
Page 14
8 Fa Be = : os x Ee 1] | ene eis] BE TT aE Lo = = ne ai ee, Ws — -- Ee J =
Page 15
2025 2024 Total SF 1,426,269 1,426,269 Rental Income 7,103,334 7,340,735 Other Income 1,342,017 1,596,281 Adjusted Gross Income 8,445,351 8,937,016 Repair & Maintenance 565,164 466,396 Recoverable Other CAM 401,390 432,410 Management Fees 580,926 629,333 Utilities 624,688 591,775 Property Tax 813,558 792,295 Insurance 656,925 674,403 General & Admin. 65,906 37,617 Reapirs & Maint. 157,184 3,775 Tenant Improvments (Loading Docs for 2025) 2,085,904 249,385 Other Non-Operating Expenses 230,987 16,691 Expenditures 241,501 765,959 Reserve for Replacement* 422,268 446,851 Total Expenses 6,846,400 5,106,890 1,598,951 3,830,126 Base Cap Rate 9.40% 9.40% Effective Cap Rate 9.40% 9.40% Indicated Income Value ($) 17,010,114 40,746,023 Value / SF ($) 11.93 28.57 * Reserves for Replacement are not provided by the property owner, they are an addition to the Actual Income Analysis. Expenses Net Operating Income Actual Income Analysis Actual Income Analysis as of 12/31/2025 Income 9
Page 16
5/27/2026 11:40 AM Period to Date % Year to Date % INCOME RENT INCOME Base Rent 7,051,333.95 -2,111.55 7,051,333.95 -2,111.55 Parking Rent 52,000.00 -15.57 52,000.00 -15.57 NET RENTAL INCOME 7,103,333.95 -2,127.12 7,103,333.95 -2,127.12 EXPENSE REIMBURSEMENT CAM Estimate 401,372.15 -120.19 401,372.15 -120.19 INS Estimate 205,365.49 -61.50 205,365.49 -61.50 RET Estimate 244,474.64 -73.21 244,474.64 -73.21 Utility Reimbursement 447,498.44 -134.01 447,498.44 -134.01 TOTAL REIMBURSEMENT 1,298,710.72 -388.90 1,298,710.72 -388.90 PRIOR YEAR REIMBURSEMENTS Prior Year CAM Recovery 62,276.23 -18.65 62,276.23 -18.65 Prior Year Ins Recovery -46,951.08 14.06 -46,951.08 14.06 Prior Year RET Recovery 3,344.34 -1.00 3,344.34 -1.00 SUBTOTAL PRIOR YEAR REIMBURSEMENTS 18,669.49 -5.59 18,669.49 -5.59 OTHER INCOME Damages -5,024.06 1.50 -5,024.06 1.50 Miscellaneous Income 0.50 0.00 0.50 0.00 Interest Income 27,996.59 -8.38 27,996.59 -8.38 Late Fee 1,663.56 -0.50 1,663.56 -0.50 TOTAL OTHER INCOME 24,636.59 -7.38 24,636.59 -7.38 TOTAL INCOME 8,445,350.75 -2,528.99 8,445,350.75 -2,528.99 EXPENSES RECOVERABLE EXPENSES CAM EXPENSES REPAIRS & MAINTENANCE Building Repairs 124,350.35 -37.24 124,350.35 -37.24 Roofing Repairs 121,237.43 -36.30 121,237.43 -36.30 Electrical Repairs 39,055.88 -11.70 39,055.88 -11.70 Equipment Repair 555.98 -0.17 555.98 -0.17 Exterior Repair 17,222.05 -5.16 17,222.05 -5.16 Plumbing Repair 54,435.67 -16.30 54,435.67 -16.30 HVAC Repair 138,622.51 -41.51 138,622.51 -41.51 HVAC Repair-Office Bldg 11,310.19 -3.39 11,310.19 -3.39 Irrigation Repair 1,367.86 -0.41 1,367.86 -0.41 Signs/Directory/Flags/Decor 1,784.94 -0.53 1,784.94 -0.53 Painting 8,870.00 -2.66 8,870.00 -2.66 Lighting 10,615.00 -3.18 10,615.00 -3.18 Parking Lot - Maintenance 6,950.00 -2.08 6,950.00 -2.08 Grand Rapids Commerce Center (163) Income Statement Period = Jan 2025-Dec 2025 Book = Cash ; Tree = ops_cf Page 1 of 4 10
Page 17
5/27/2026 11:40 AM Period to Date % Year to Date % Grand Rapids Commerce Center (163) Income Statement Period = Jan 2025-Dec 2025 Book = Cash ; Tree = ops_cf Lock & Keys 2,502.68 -0.75 2,502.68 -0.75 Elevator Inspection & Repair 26,283.10 -7.87 26,283.10 -7.87 REPAIRS & MAINTENANCE - SUBTOTAL 565,163.64 -169.24 565,163.64 -169.24 RECOVERABLE OTHER CAM Snow Removal 93,900.00 -28.12 93,900.00 -28.12 Landscaping 92,063.06 -27.57 92,063.06 -27.57 Other Fire/Life Safety 56,116.49 -16.80 56,116.49 -16.80 Meter Reading 8,189.80 -2.45 8,189.80 -2.45 Janitorial 38,475.74 -11.52 38,475.74 -11.52 Janitorial (office) 2,688.05 -0.80 2,688.05 -0.80 Trash Disposal 15,456.87 -4.63 15,456.87 -4.63 CAM Association Expenses 94,500.00 -28.30 94,500.00 -28.30 RECOVERABLE OTHER CAM - SUBTOTAL 401,390.01 -120.20 401,390.01 -120.20 RECOVERABLE MANAGEMENT FEES Management Fee - GU 332,319.08 -99.51 332,319.08 -99.51 CAM Management Fee 248,606.76 -74.45 248,606.76 -74.45 RECOVERABLE MANAGEMENT FEES - SUBTOTAL 580,925.84 -173.96 580,925.84 -173.96 UTILITIES Electricity 457,597.93 -137.03 457,597.93 -137.03 Electricity-Sub-Metered 34,956.03 -10.47 34,956.03 -10.47 Gas 93,141.98 -27.89 93,141.98 -27.89 Water & Sewer 37,624.71 -11.27 37,624.71 -11.27 Water - Irrigation 1,367.25 -0.41 1,367.25 -0.41 UTILITIES - SUBTOTAL 624,687.90 -187.07 624,687.90 -187.07 TOTAL CAM EXPENSES 2,172,167.39 -650.46 2,172,167.39 -650.46 PROPERTY TAX Property Tax 813,557.94 -243.62 813,557.94 -243.62 PROPERTY TAX - SUBTOTAL 813,557.94 -243.62 813,557.94 -243.62 INSURANCE Insurance 656,925.16 -196.72 656,925.16 -196.72 INSURANCE - SUBTOTAL 656,925.16 -196.72 656,925.16 -196.72 TOTAL RECOVERABLE EXPENSES 3,642,650.49 -1,090.81 3,642,650.49 -1,090.81 UNRECOVERABLE EXPENSES GENERAL & ADMINISTRATIVE Office Utilities 824.11 -0.25 824.11 -0.25 Bank Fees 5,167.54 -1.55 5,167.54 -1.55 Advertising & Promotion 9,132.10 -2.73 9,132.10 -2.73 Consulting Fees 40,000.00 -11.98 40,000.00 -11.98 Legal & Professional Fees 7,485.00 -2.24 7,485.00 -2.24 Accounting Expense 47.24 -0.01 47.24 -0.01 Page 2 of 4 11
Page 18
5/27/2026 11:40 AM Period to Date % Year to Date % Grand Rapids Commerce Center (163) Income Statement Period = Jan 2025-Dec 2025 Book = Cash ; Tree = ops_cf Site Plans 3,250.00 -0.97 3,250.00 -0.97 TOTAL G & A EXPENSE 65,905.99 -19.74 65,905.99 -19.74 REPAIRS & MAINTENANCE Signage 515.13 -0.15 515.13 -0.15 Shell Space 151,991.12 -45.51 151,991.12 -45.51 Tenant Space Repairs 3,997.99 -1.20 3,997.99 -1.20 Misc. Repairs 679.96 -0.20 679.96 -0.20 TOTAL REPAIRS & MAINTENANCE 157,184.20 -47.07 157,184.20 -47.07 TOTAL UNRECOVERABLE EXPENSES 223,090.19 -66.81 223,090.19 -66.81 TOTAL EXPENSES 3,865,740.68 -1,157.61 3,865,740.68 -1,157.61 NET OPERATING INCOME 4,579,610.07 -1,371.38 4,579,610.07 -1,371.38 DEBT EXPENSE 1st Mortgage Interest 846,303.28 -253.43 846,303.28 -253.43 Note 1 Principal Payment 567,078.56 -169.81 567,078.56 -169.81 TOTAL DEBT SERVICE 1,413,381.84 -423.24 1,413,381.84 -423.24 CAPITAL EXPENDITURES Building Improvements - Misc. 12,740.00 -3.82 12,740.00 -3.82 Building Improvements - Parking Lot 173,213.25 -51.87 173,213.25 -51.87 Building Improvements - HVAC 547.82 -0.16 547.82 -0.16 Building Improvements - Fence 2,200.00 -0.66 2,200.00 -0.66 Building Improvements - Roof 52,800.00 -15.81 52,800.00 -15.81 CAPITAL EXPENDITURES - SUBTOTAL 241,501.07 -72.32 241,501.07 -72.32 TENANT IMPROV. & LEASE COMM. Tenant Improvements 2,085,903.53 -624.63 2,085,903.53 -624.63 Leasing Commissions 373,911.35 -111.97 373,911.35 -111.97 TENANT IMPROV. & LEASE COMM. - SUBTOTAL 2,459,814.88 -736.60 2,459,814.88 -736.60 NET INCOME - OPERATING CASH FLOW 464,912.28 -139.22 464,912.28 -139.22 OTHER NON-OPERATING EXPENSES Management Fee-CA office 175,422.32 -52.53 175,422.32 -52.53 Taxes-Non-Cam(Income Taxes) -800.00 0.24 -800.00 0.24 Prior Year Prepaid Rent -336,902.46 100.89 -336,902.46 100.89 Plus: Prepaid Rent 393,267.33 -117.77 393,267.33 -117.77 TOTAL OTHER NON-OPERATING EXPENSES 230,987.19 -69.17 230,987.19 -69.17 ADJUSTMENTS TO CASH FLOW A/R - Tenant Billbacks -7,895.73 2.36 -7,895.73 2.36 Tax Escrow -24,389.34 7.30 -24,389.34 7.30 TI/LC Reserve Escrow -1,164,931.39 348.84 -1,164,931.39 348.84 Replacement Reserve Escrow 2,447,285.16 -732.85 2,447,285.16 -732.85 Other Reserves -1,074,052.03 321.63 -1,074,052.03 321.63 Page 3 of 4 12
Page 19
5/27/2026 11:40 AM Period to Date % Year to Date % Grand Rapids Commerce Center (163) Income Statement Period = Jan 2025-Dec 2025 Book = Cash ; Tree = ops_cf Closing Cost -0.50 0.00 -0.50 0.00 Tenant Deposits -76,000.00 22.76 -76,000.00 22.76 TOTAL ADJUSTMENTS TO CASH FLOW 100,016.17 -29.95 100,016.17 -29.95 ADJUSTED CASH FLOW 333,941.26 -100.00 333,941.26 -100.00 ADJUSTED CASH FLOW 333,941.26 -100.00 333,941.26 -100.00 Page 4 of 4 13
Page 20
5/27/2026 11:40 AM Period to Date % Year to Date % INCOME RENT INCOME Base Rent 7,340,734.94 -314.99 7,340,734.94 -314.99 NET RENTAL INCOME 7,340,734.94 -314.99 7,340,734.94 -314.99 EXPENSE REIMBURSEMENT CAM Estimate 334,284.60 -14.34 334,284.60 -14.34 INS Estimate 230,388.60 -9.89 230,388.60 -9.89 RET Estimate 212,160.00 -9.10 212,160.00 -9.10 Utility Reimbursement 405,324.60 -17.39 405,324.60 -17.39 TOTAL REIMBURSEMENT 1,182,157.80 -50.73 1,182,157.80 -50.73 PRIOR YEAR REIMBURSEMENTS Prior Year CAM Recovery -43,492.27 1.87 -43,492.27 1.87 Prior Year Ins Recovery 222,768.95 -9.56 222,768.95 -9.56 Prior Year RET Recovery 206,948.39 -8.88 206,948.39 -8.88 SUBTOTAL PRIOR YEAR REIMBURSEMENTS 386,225.07 -16.57 386,225.07 -16.57 OTHER INCOME Miscellaneous Income -20,149.96 0.86 -20,149.96 0.86 Interest Income 24,807.27 -1.06 24,807.27 -1.06 Late Fee 23,241.08 -1.00 23,241.08 -1.00 TOTAL OTHER INCOME 27,898.39 -1.20 27,898.39 -1.20 TOTAL INCOME 8,937,016.20 -383.48 8,937,016.20 -383.48 EXPENSES RECOVERABLE EXPENSES CAM EXPENSES REPAIRS & MAINTENANCE Building Repairs 123,176.78 -5.29 123,176.78 -5.29 Roofing Repairs 26,799.98 -1.15 26,799.98 -1.15 Electrical Repairs 45,507.75 -1.95 45,507.75 -1.95 Equipment Repair 2,630.94 -0.11 2,630.94 -0.11 Exterior Repair 39,937.19 -1.71 39,937.19 -1.71 Plumbing Repair 23,137.89 -0.99 23,137.89 -0.99 HVAC Repair 111,361.83 -4.78 111,361.83 -4.78 HVAC Repair-Office Bldg 9,795.00 -0.42 9,795.00 -0.42 Interior Repair 8,960.82 -0.38 8,960.82 -0.38 Irrigation Repair 5,437.46 -0.23 5,437.46 -0.23 Signs/Directory/Flags/Decor 2,423.24 -0.10 2,423.24 -0.10 Painting 11,140.00 -0.48 11,140.00 -0.48 Lighting 6,517.50 -0.28 6,517.50 -0.28 Parking Lot - Maintenance 25,672.62 -1.10 25,672.62 -1.10 Lock & Keys 5,712.70 -0.25 5,712.70 -0.25 Grand Rapids Commerce Center (163) Income Statement Period = Jan 2024-Dec 2024 Book = Cash ; Tree = ops_cf Page 1 of 4 14
Page 21
5/27/2026 11:40 AM Period to Date % Year to Date % Grand Rapids Commerce Center (163) Income Statement Period = Jan 2024-Dec 2024 Book = Cash ; Tree = ops_cf Elevator Inspection & Repair 18,184.10 -0.78 18,184.10 -0.78 REPAIRS & MAINTENANCE - SUBTOTAL 466,395.80 -20.01 466,395.80 -20.01 RECOVERABLE OTHER CAM Pest Control 200.00 -0.01 200.00 -0.01 Snow Removal 92,500.00 -3.97 92,500.00 -3.97 Landscaping 78,156.51 -3.35 78,156.51 -3.35 Other Fire/Life Safety 99,251.25 -4.26 99,251.25 -4.26 Other-Fire/Internet 2,609.31 -0.11 2,609.31 -0.11 Meter Reading 8,500.00 -0.36 8,500.00 -0.36 Janitorial 41,106.31 -1.76 41,106.31 -1.76 Janitorial (office) 260.00 -0.01 260.00 -0.01 Alarm Monitoring 1,000.00 -0.04 1,000.00 -0.04 Pressure Washing 2,184.87 -0.09 2,184.87 -0.09 Trash Disposal 18,891.30 -0.81 18,891.30 -0.81 CAM Association Expenses 87,750.00 -3.77 87,750.00 -3.77 RECOVERABLE OTHER CAM - SUBTOTAL 432,409.55 -18.55 432,409.55 -18.55 RECOVERABLE MANAGEMENT FEES Management Fee - GU 359,618.82 -15.43 359,618.82 -15.43 CAM Management Fee 269,714.12 -11.57 269,714.12 -11.57 RECOVERABLE MANAGEMENT FEES - SUBTOTAL 629,332.94 -27.00 629,332.94 -27.00 UTILITIES Electricity-Sub-Metered 444,267.90 -19.06 444,267.90 -19.06 Gas 106,986.37 -4.59 106,986.37 -4.59 Water & Sewer 40,402.54 -1.73 40,402.54 -1.73 Water - Irrigation 118.06 -0.01 118.06 -0.01 UTILITIES - SUBTOTAL 591,774.87 -25.39 591,774.87 -25.39 TOTAL CAM EXPENSES 2,119,913.16 -90.96 2,119,913.16 -90.96 PROPERTY TAX Property Tax 792,295.35 -34.00 792,295.35 -34.00 PROPERTY TAX - SUBTOTAL 792,295.35 -34.00 792,295.35 -34.00 INSURANCE Insurance 674,402.64 -28.94 674,402.64 -28.94 INSURANCE - SUBTOTAL 674,402.64 -28.94 674,402.64 -28.94 TOTAL RECOVERABLE EXPENSES 3,586,611.15 -153.90 3,586,611.15 -153.90 UNRECOVERABLE EXPENSES GENERAL & ADMINISTRATIVE Office Utilities 1,018.10 -0.04 1,018.10 -0.04 Bank Fees 5,465.90 -0.23 5,465.90 -0.23 Legal & Professional Fees 14,711.40 -0.63 14,711.40 -0.63 Fees & Permits 15,529.38 -0.67 15,529.38 -0.67 Page 2 of 4 15
Page 22
5/27/2026 11:40 AM Period to Date % Year to Date % Grand Rapids Commerce Center (163) Income Statement Period = Jan 2024-Dec 2024 Book = Cash ; Tree = ops_cf Accounting Expense 590.00 -0.03 590.00 -0.03 Miscellaneous Expense 302.40 -0.01 302.40 -0.01 TOTAL G & A EXPENSE 37,617.18 -1.61 37,617.18 -1.61 REPAIRS & MAINTENANCE HVAC 6,475.00 -0.28 6,475.00 -0.28 Tenant Billback -2,700.00 0.12 -2,700.00 0.12 TOTAL REPAIRS & MAINTENANCE 3,775.00 -0.16 3,775.00 -0.16 TOTAL UNRECOVERABLE EXPENSES 41,392.18 -1.78 41,392.18 -1.78 TOTAL EXPENSES 3,628,003.33 -155.68 3,628,003.33 -155.68 NET OPERATING INCOME 5,309,012.87 -227.81 5,309,012.87 -227.81 DEBT EXPENSE 1st Mortgage Interest 867,746.71 -37.23 867,746.71 -37.23 Note 1 Principal Payment 545,635.13 -23.41 545,635.13 -23.41 TOTAL DEBT SERVICE 1,413,381.84 -60.65 1,413,381.84 -60.65 CAPITAL EXPENDITURES Building Improvements - Misc. 464,242.60 -19.92 464,242.60 -19.92 Building Improvements - Parking Lot 191,459.40 -8.22 191,459.40 -8.22 Building Improvements - HVAC 110,257.40 -4.73 110,257.40 -4.73 CAPITAL EXPENDITURES - SUBTOTAL 765,959.40 -32.87 765,959.40 -32.87 TENANT IMPROV. & LEASE COMM. Tenant Improvements 249,385.41 -10.70 249,385.41 -10.70 Leasing Commissions 100,000.00 -4.29 100,000.00 -4.29 TENANT IMPROV. & LEASE COMM. - SUBTOTAL 349,385.41 -14.99 349,385.41 -14.99 NET INCOME - OPERATING CASH FLOW 2,780,286.22 -119.30 2,780,286.22 -119.30 OTHER NON-OPERATING EXPENSES Management Fee-CA office 105,000.00 -4.51 105,000.00 -4.51 Taxes-Non-Cam(Income Taxes) -800.00 0.03 -800.00 0.03 Prior Year Prepaid Rent -424,411.40 18.21 -424,411.40 18.21 Plus: Prepaid Rent 336,902.46 -14.46 336,902.46 -14.46 TOTAL OTHER NON-OPERATING EXPENSES 16,691.06 -0.72 16,691.06 -0.72 ADJUSTMENTS TO CASH FLOW Tax Escrow -39,350.91 1.69 -39,350.91 1.69 Replacement Reserve Escrow -388,846.20 16.69 -388,846.20 16.69 Other Reserves 22.71 0.00 22.71 0.00 Other Furniture -14,854.78 0.64 -14,854.78 0.64 Accounts Payable -75,864.87 3.26 -75,864.87 3.26 Tenant Deposits 85,789.00 -3.68 85,789.00 -3.68 TOTAL ADJUSTMENTS TO CASH FLOW -433,105.05 18.58 -433,105.05 18.58 Page 3 of 4 16
Page 23
5/27/2026 11:40 AM Period to Date % Year to Date % Grand Rapids Commerce Center (163) Income Statement Period = Jan 2024-Dec 2024 Book = Cash ; Tree = ops_cf ADJUSTED CASH FLOW 2,330,490.11 -100.00 2,330,490.11 -100.00 ADJUSTED CASH FLOW 2,330,490.11 -100.00 2,330,490.11 -100.00 Page 4 of 4 17