ET Petition Amended w Attached Exhibit.pdf
Martin Jeff Heppler, Petitioner Vs. Township Of Emmett, Respondent · 25-003286-TT
Text extracted from the reviewed PDF, organized by page. OCR and reading order may contain errors; confirm details in the PDF below.
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STATE OF MICHIGAN GRETCHEN WHITMER GOVERNOR DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS LANSING MARLON I. BROWN, DPA DIRECTOR 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 _____________________________, MICHIGAN TAX TRIBUNAL Petitioner(s) v MTT Docket No. _____________________________, Respondent(s) ENTIRE TRIBUNAL PROPERTY TAX PETITION 1. Property Parcel No: _____________________________________________ (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 ___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 _________________________ 7. If the assessment or assessments at issue were protested, the protest was made to Respondent’s ___ March ___ July ___December Board of Review. Martin J. Heppler 25-002666 Emmett Charter Township 10-008-005-00 x x x commercial x
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MTT Docket No. _________________ Page 2 of 4 8. 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): 9. 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): 10. The property or properties at issue are located in _______________County. The property or properties’ address is: 11. The assessment or assessments at issue were established by the (applicable local governmental unit): ________________________________________ 12. Petitioner’s legal residence or principal office address is: 13. This appeal involves issues relating to the (check all that are applicable): ________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 or loss? ___ Yes ___No ________uniformity of the property or properties’ assessment ________the property or the properties’ exemption from ad valorem taxation under MCL ______ 14. The tax year(s) at issue are: _______________________________________ 25-002666 Calhoun 2000 E Columbia Ave, Battle Creek, MI 49014 Emmett Charter Township, Calhoun County 8666 E D. Ave, Richland, MI, 49083 x 2025
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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): 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 17. Petitioner contends that the values for the property identified above are: Tax Year True Cash Value State Equalized Value Taxable Value 18. The values in dispute for the property identified above are: Tax Year True Cash Value State Equalized Value Taxable Value 19. Petitioner requests the following relief (attach additional page if necessary): 20. List the separate and specific facts upon which Petitioner relies to support the relief requested (attach additional page if necessary): 25-002666 2025 485,000 485,000 242,500 2025 310,000 155,000 155,000 2025 175,000 87,500 87,500 Order that the assessed value for the parcel numbered 10-008-005-00 be adjusted to $310,000, with the taxable value and tax bill changed to reflect that figure. See attached appraisal dated May 29, 2025.
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MTT Docket No. _________________ Page 4 of 4 Signature of Petitioner’s Authorized Representative or, if none, Petitioner: ______________________________________________________________________ Printed Name of Petitioner’s Authorized Representative or, if none, Petitioner: ______________________________________________________________________ Email Address: _________________________________________________________ Mailing Address: ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ Telephone Number: _____________________________________________________ Date: _________________________________________________________________ 25-002666 /s/ Nelson Karre Nelson Karre nkarre@vcflaw.com 70 Michigan Ave W Suite 450 Battle Creek, MI, 49017 269-965-7000 August 29, 2025
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SITE DESCRIPTION GRR250041 General Description The subject site consists of 1 parcel. As noted below, the subject site has 1,666,587 SF (38.26 AC) of land area. The area is estimated based on the records of the Emmett Charter Township Tax Assessor and may change if a professional survey determines more precise measurements. As will be shown in graphics later in this section, a significant portion of the subject site is not considered usable. This includes the following approximations (most estimated utilizing the Calhoun County GIS mapping application). SITE AREA ALLOCATIONS AREA ACREAGE Usable Acres 3.25 Surplus Acres 6.75 Flood Way / Flood Hazard Area 1.97 Wetlands 22.37 Communication Tow er Easement 0.23 Heavily Sloped/ Access Easement 3.69 TOTAL GROSS ACRES 38.26 Assessor Parcel 10 008 005 00 Number Of Parcels 1 Land Area Acres Square Feet Primary Parcel 325 141,570 Unusable Land 28.26 1,230,987 Excess Land 0.00 0 Surplus Land 6.75 294,030 Total Land Area 38.26 1,666,587 Shape Irregular - See Plat Map For Exact Shape Topography Sloping below street grade Drainage Assumed Adequate Utilities All available to the site / pd ra / / 2 a & Street Improvements Street Direction No. Lanes Street Type JS 5 East Columbia Ave. Primary Street two-way four-lane major arterial v South Raymond Road Secondary Street two-way two-lane connector street v Frontage The subject has adequate frontgage along East Columbia Avenue and South Raymond Road. Accessibility The accessibility of the subject is rated as average. The subject is accessed from two streets, with the main entrance and primary point of ingress/egress being East Columbia Ave.. Major transportation arterials within proximity to the subject include East Columbia Avenue, 1-194 and 1-94, providing linkage to the surrounding area. Exposure The subject has below average exposure due to the topographical features resulting in limited visibility, despite its location along a major arterial. The project's exposure rating takes into account its below average visibility and its average traffic count. It also considers the subject's exposure from multiple streets. © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 29
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SITE DESCRIPTION CONTINUED GRR250041 Seismic The subject is in a low risk zone. Flood Zone Majority Of The Site Zone X (Unshaded). This is referenced by Community Number 260561, Panel Number 26025C0192C, dated April 04, 2011. Zone X (unshaded) is a moderate and minimal risk area. Areas of moderate or minimal hazard are studied based upon the principal source of flood in the area. However, buildings in these zones could be flooded by severe, concentrated rainfall coupled with inadequate local drainage systems. Local stormwater drainage systems are not normally considered in a community's flood insurance study. The failure of a local drainage system can create areas of high flood risk within these zones. Flood insurance is available in participating communities, but is not required by regulation in these zones. Nearly 25-percent of all flood claims filed are for structures located within these zones. Minimal risk areas outside the 1-percent and .2-percent-annual- chance floodplains. No BFEs or base flood depths are shown within these zones. (Zone X (unshaded) is used on new and revised maps in place of Zone C.) Along The River Zone AE. This is referenced by Community Number 260561, Panel Number 26025C0192C, dated April 04, 2011. Zone AE is a High Risk Special Flood Hazard Area (SFHA). Special Flood Hazard Areas represent the area subject to inundation by 1-percent-annual chance flood. Structures located within the SFHA have a 26- percent chance of flooding during the life of a standard 30-year mortgage. Federal floodplain management regulations and mandatory flood insurance purchase requirements apply in these zones. Areas subject to inundation by the 1-percent- annual-chance flood event determined by detailed methods. BFEs are shown within these zones. (Zone AE is used on new and revised maps in place of Zones A1-A30.) Site Rating Overall, the subject site is considered a below average industrial site in terms of its location, exposure, and physical characteristics (flood zone, easements and wetlands), despite its location along a major arterial. Easements A preliminary title report was not available for review. During the on-site inspection, no adverse easements or encumbrances were noted. This appraisal assumes that there is no negative value impact on the subject improvements. If questions arise regarding easements, encroachments, or other encumbrances, further research is advised. Soils A detailed soils analysis was not available for review. Based on the development of the subject, it appears the soils are stable and suitable for the existing improvements. Hazardous Waste We have not conducted an independent investigation to determine the presence or absence of toxins on the subject property. If questions arise, the reader is strongly cautioned to seek qualified professional assistance in this matter. Please see the Assumptions and Limiting Conditions for a full disclaimer. ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY. SERVICES E10)
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GRR250041 ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Raymond Rd S = 3 10-008-005-00 HEPPLER MARTIN J & JUDITH M 2000 E COLUMBIA AVE #192, BATTLE CREEK Show Detail 31
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EXHIBITS CONTINUED GRR250041 ZONING MAP ARTESIAN CT = 3 RAYMOND Ri (Ea AB AGRICULTURAL BUSINESS DISTRICT | GC GENERAL COMMERCIAL DISTRICT RR - RURAL RESIDENTIAL DISTRICT RC - REGIONAL COMMERCIAL DISTRICT ete ] RA - LOW DENSITY RESIDENTIAL DISTRICT LI- LIGHT INDUSTRIAL DISTRICT RB - MEDIUM DENSITY RESIDENTIAL DISTRICT IP - INDUSTRIAL PARK DISTRICT | OC - OPEN SPACE & WATER BODY CONSERVATION ME MULTEFAMILY RESIDENCE DISTRICT CIY LIMITS MH - MANUFACTURED HOML PARK DISTRICT LC - LOCAL COMMERCIAL DISTRICT ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 32
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GRR250041
CONTINUED
FLOOD MAP
Flood Map
Report
Pa
For Property we At P
: >
RealQuest
orelogic’
2000 COLUMBIA AVE E 192, BATTLE CREEK, MI 49014-6300
County: CALHOUN, MI
Report Date: 05/28/2025
Flood Zone Code
Flood Zone Panel
Panel Date
AE
260561
- 26025C0192C
04/04/2011
Special Flood Hazard Area {SFHA)
Within 250 ft. of multiple flood zones?
Community Name
In
Yes (AE,X,X500)
EMMETT
Flood Zone Description:
Zone AE-An area inundated by 100-year flooding
Flood Zones
Wl coos 100-vesr Floodway
[J] 100-vesr Flanewsy
Undsterminus
500-yenr Monealain Ind. eve protected arms
BB coos 100-vear Floodpiain
100-year Flogeplain
Unknown or Area Nal. Incuded
Out of Spel Flood Hozard Ares
33
©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY: SERVIC]Page 10
EXHIB CONTINUED GRR250041 WETLAND MAP etlands Estuarine and Marine Deepwater Estuarine and Marine Wetland Freshwater Emergent Wetland Freshwater Forested/Shrub 0 Wetland Freshwater Pond HB Lake [J Other Riverine Riparian [] Forested/Shrub [] Herbaceous PFO1C © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 34
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CONTINUED GRR250041 ESTIMATED USABLE LAND AREA HEPPLER. MARTIN J & JUDITH M 2000 E COLUMBIA AVE #192, BATTLE CREEK Show Details ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY. SERVICES 35
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EXHIBITS CONTINUED GRR250041 ESTIMATED USABLE AND SURPLUS LAND AREA 10-008-005-00 HEPPLER MARTIN J & JUDITH M 2000 E COLUMBIA AVE #192, BATTLE CREEK Show Details | ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 36
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CONTINUED ASSESSOR'S SKETCH 28" canopy for go carts 560.00 sf 20 20' 28" gocart track 1/2 mile x 16 ft pool for kiddie boats 75'x75" wd shed 10x12 120sf wd shed 10x12 120sf wd shed 10x14 140sf 18 hole mini golf Sketch by Apex Sketch ©2025 COLLIERS INTERNATIONAL VAL 40" 80' storage 3200.00 sf 12 ft sty ht 12 36' 40" office area 480.00 sf 8 ' Hat 12' GRR250041 40' 60" pole 2160.00 sf avg sty ht 13’ 60’ 37
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IMPROVEMENT DESCRIPTION GRR250041 INTRODUCTION The information presented below is a basic description of the existing improvements. This information is used in the valuation of the property. Reliance has been placed upon information provided by sources deemed dependable for this analysis. It is assumed that there are no hidden defects, and that all structural components are functional and operational, unless otherwise noted. If questions arise regarding the integrity of the improvements or their operational components, it may be necessary to consult additional professional resources. MULTIPLE BUILDING DESCRIPTION GRID % YEAR EFF. ECON. REM. CLEAR DOORS BUILDING GBA NRA OFFICE BUILT AGE LIFE LIFE HEIGHT DOCK GRADE QUALITY CONDITION Building 1 3,200 3,200 3% 1988 20 45 25 12 FT 0 1 Average Average Building 2 2,640 2,640 18% 1987 20 45 25 12-13" 0 1 Average Average Canopy 480 0 10% 1988 20 45 25 12-13 0 0 Average Average TOTAL 6320 5840 10% 0 2 Property Type Industrial - Other Industrial Design Single or Multi-Tenant Vacant - 1 Tenant Spaces Number of Buildings 3 (See Multiple Building Chart For Breakdown) Number of Stories 1 Net Rentable Area (NRA) 5,840 SF Gross Building Area (GBA) 6,320 SF Clear Height 12'-13' Grade Level Doors 2 Site Coverage Ratio 4.5% Land to Building Ratio 224:1 Year Built 1987 AgelLife Analysis Actual Age 38 Years Effective Age 20 Years Economic Life 45 Years Remaining Life 25 Years Quality Average Condition Average Functional Design The subject is a former family recreation property with putt putt, a Go-Kart course, a bumper boat pool, battling cages and the like. The property closed some time ago and the two industrial buildings on site have the greatest value as they have been leased on occasion although they are currently vacant as of the inspection date. Those two buildings and the parking areas are generally constructed within market expectations given their vintage and have a functional design for light industrial and service uses. The remaining improvements including the putt putt course, canopy for the Go-Karts, several small sheds, Go-Kart Course (paving), inground pool and other minor improvements are concluded to add no contributory value to the property since the recreation center is no longer economically viable © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 38
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IMPROVEMENT DESCRIPTION CONTINUED GRR250041 and a substantial investment would be required to get the property to usable condition. A deduction to raze and / or fill in the dilapidated site improvements could be made, but since further development is not currently feasible, it is likely a potential buyer would leave the site improvement as-is until such time when use of the land could be developed economically. So no deduction is applied. Basic Construction Class S Foundation Concrete Slab With Footers Framing Steel Frame Exterior Walls Metal Roof Metal Seam Insulation Assumed to be standard and to code for both walls and ceilings Heating Forced Air Air Conditioning Sleeve Units Lighting Fluorescent and LED Interior Walls Drywall and exposed construction materials Electrical Assumed adequate and to-code. Ceilings Acoustical tile and exposed construction materials Windows Standard windows; glass in aluminum frames Doors Glass in metal frame Flooring Sealed concrete, ceramic tile, VCT Plumbing Standard plumbing for an industrial building Fire Protection The subject has smoke alarms but does not have a fire sprinkler system. Landscaping Asphalt paving, concrete sidewalks, concrete curbing, pole mounted lights and low maintenance landscaping Signage There is a monument style sign in front of the subject. Parking The subject property has ample, but an unstriped asphalt parking area that is in fair condition (spalling noted). The subject's parking lot provides more than adequate parking for industrial use. Deferred Maintenance The subject property has an ongoing maintenance program in place. Based on my interview with the property contact and the onsite inspection by the field appraiser, no observable deferred maintenance exists to the two primary buildings with contributory value. The building and site improvements previously utilized for the family fun center have significant deferred maintenance; however, since they do not contribute to the overall value of the property, no deduction for curing the deferred maintenance issues is applied. Hazardous Materials This appraisal assumes that the improvements are constructed free of all hazardous waste and toxic materials, including (but not limited to) asbestos. ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 39
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IMPROVEMENT DESCRIPTION CONTINUED GRR250041 Please refer to the Assumptions and Limiting Conditions section regarding this issue. ADA Compliance This analysis assumes that the subject complies with all ADA requirements. Please refer to the Assumptions and Limiting Conditions section regarding this issue. © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 40
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ASSESSMENT & TAXATION GRR250041 INTRODUCTION In 1994, Michigan passed Proposal A, a constitutional amendment that states that the taxable value of any residence or business cannot increase by more than 5.0% or the rate of inflation, whichever is less. In Michigan, the local assessor estimates the State Equalized Value (SEV), which is 50% of the “market value” of the property. Real estate taxes are based on the Taxable Value, which after a sale is set equal to the SEV. The assessor multiplies the previous year’s taxable value by the CPI (capped at a maximum increase of 5.0%) to calculate the Taxable Value. The Taxable Value will never be higher than the SEV, but can be much lower if property values are annually increasing faster than 5.0% and the property has not sold in a long time. Upon transfer of ownership, the new taxable value is set equal to the assessor's in-place estimate of SEV, and the old “capped” taxable value no longer applies. The subject property is located within Emmett Charter Township. The following assessed value and property tax based on the 2024 SEV and 2024 actual tax rates are summarized in the following table. ASSESSMENT & TAXES - TAX YEAR 2024 Tax Year 2024 Tax Rate 5.812780% Tax Rate Area Emmett Charter Tow nship Taxes Current Yes Taxes SF Basis Net Rentable Area APN TRUE CASH VALUE TAXABLEVALUE EXEMPTIONS SEV BASETAX 10008 005 00 $485,200 $242,600 $0 $242,600 $14,102 Totals $485,200 $242,600 $0 $242,600 $14,102 Total/SF $83.08 $41.54 $0 $41.54 $2.41 Additional Tax Charges Administrative Fee (upcharge on base taxes) 1.00% $141 Total Additional Tax Charges $141 Total Base Tax & Additional Tax Charges $14,243 Total Base Tax & Additional Tax Charges Per SF $2.44 Source: Er Tow nshif tic Similarly, the following table illustrates the assessed value and property tax based on the 2025 SEV and 2024 tax rates (since the 2025 tax rates have not yet been published). This is summarized in the following table. ASSESSMENT & TAXES - TAX YEAR 2025 Tax Year 2025 Tax Rate 5.812780% Tax Rate Area Emmett Charter Tow nship Taxes Current Yes Taxes SF Basis Net Rentable Area APN TRUE CASH VALUE TAXABLEVALUE EXEMPTIONS SEV BASETAX 10 008 005 00 $491,700 $245,850 $0 $245,850 $14,291 Totals $491,700 $245,850 $0 $245,850 $14,291 Total/SF $84.20 $42.10 $0 $42.10 $2.45 Additional Tax Charges Administrative Fee (upcharge on base taxes) 1.00% $143 Total Additional Tax Charges $143 Total Base Tax & Additional Tax Charges $14,434 Total Base Tax & Additional Tax Charges Per SF $2.47 Source: Er Tow nship Ass t & Taxation ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY. SERVICES 41
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ASSESSMENT, & TAXATION CONTINUED GRR250041 SUBJECT PROPERTY ANALYSIS The State Equalized Value (SEV) for the subject property is $242,600 (or $41.54/SF) in 2024 with a tax burden of $14,243 (or $2.44 PSF) in 2024. Similarly, State Equalized Value (SEV) for the subject property is $245,850 (or $42.10/SF) in 2025 with an estimated tax burden of $14,434 (or $2.47 PSF) in 2025. There are no exemptions in place. Total taxes for the property are $14,434 or $2.47/SF. According to the online records maintained by the Emmett Charter Township Assessor's Office, real estate taxes for the subject property are current as of the date of this report. CONCLUSION Ordinarily, property taxes would be calculated and deducted from the operating expenses of the property. In this instance, however, the appropriate tax amount is not known since it is the purpose of this report to determine what the appropriate value on which taxes are to be based. In such cases, the valuation applies a tax loaded capitalization rate. This is achieved by adding the effective tax rate to the capitalization rates and the result is the rate applied in the income approach. This will be shown in the forthcoming report. © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 42
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ZONING ANALYSIS GRR250041 INTRODUCTION Zoning requirements typically establish permitted and prohibited uses, building height, lot coverage, setbacks, parking and other factors that control the size and location of improvements on a site. The zoning characteristics for the subject property are summarized below: ZONING SUMMARY Municipality Governing Zoning Emmett Charter Township Planning & Zoning Department Current Zoning Light Industrial (LI) Permitted Uses Permitted uses within this zoning district primarily include self- storage, various service use, various light industiral and wholesale warehousing / material distribution, office, auto senice, outdoor display / storage and amusment / recreation facilities. Current Use Light Industrial Is Current Use Legally Permitted? Yes Zoning Change Not Likely ZONING REQUIREMENTS Conforming Use The subject's improvements represent a legal, conforming use. Minimum Site Area (SF) 43,560 SF (Since the property lacks public sewer) Minimum Site Width (Feet) 150 Feet Minimum Yard Setbacks Front (Feet) 35 Feet Side (Feet) 20 Feet Side Road Fronting (Feet) 35 Feet Rear (Feet) 35 Feet Maximum Site Coverage 60% Maximum Building Height 35 Feet Parking Requirement Spaces Required (Industrial) Based on employment characteristics Spaces Provided Ample (Unstriped) Source: Emmett Charter Tow nship Planning & Zoning Department ZONING CONCLUSIONS Based on the interpretation of the zoning ordinance, the subject property is an outright permitted use that could be rebuilt if unintentionally destroyed. Detailed zoning studies are typically performed by a zoning or land use expert, including attorneys, land use planners, or architects. The depth of my analysis correlates directly with the scope of this assignment, and it considers all pertinent issues that have been discovered through my due diligence. Please note that this appraisal is not intended to be a detailed determination of compliance, as that determination is beyond the scope of this real estate appraisal assignment. ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 43
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MARKET ANALYSIS GRR250041 INTRODUCTION The market analysis section provides a comprehensive study of supply/demand conditions, examines transaction trends, and interprets ground level information conveyed by market participants. Based on these findings and an analysis of the subject property, conclusions are drawn with regard to the subject's competitive position within the marketplace. Below is a list of the various sections covered in the following Industrial Market Analysis: > West Michigan Industrial Market > Battle Creek / W. Calhoun County Industrial Submarket > Transaction Trends > Subject Property Analysis WEST MICHIGAN INDUSTRIAL MARKET The following is an analysis of supply/demand trends in the West Michigan Industrial market using information provided by CoStar, widely recognized as a credible source for tracking market statistics. The table below presents historical data for key market indicators. WEST MICHIGAN HISTORICAL STATISTICS (LAST TEN YEARS) PERIOD SUPPLY NEW CONSTRUCTION NET ABSORPTION ~~ VACANCY ASKING RENT 2015 345,655,121 SF 2,029,841 SF 5,454,658 SF 3.7% $3.21/SF 2016 ~~ 347,212,654 SF 2,179,950 SF 4,437,658 SF 2.7% $3.43/SF 2017 ~~ 349,306,713 SF 2,209,810 SF 3,953,394 SF 1.7% $3.57/SF 2018 351,349,056 SF 2,413,569 SF 1,644,516 SF 1.7% $4.05/SF 2019 353,360,811 SF 2,825,782 SF (1,180,868) SF 2.3% $4.13/SF 2020 357,207,291 SF 4,544,646 SF 2,768,481 SF 3.2% $4.30/SF 2021 359,370,634 SF 2,542,776 SF 4,623,775 SF 2.6% $4.79/SF 2022 363,277,237 SF 3,914,288 SF 2,797,988 SF 2.6% $5.37/SF 2023 365,682,518 SF 2,661,371 SF 3,757,390 SF 2.3% © $5.54/SF 2024 367,907,983 SF 2,323,743 SF 1,086,314 SF 2.4% $6.06/SF CAGR 0.6% - - - 6.6% ed on [R7) Over the past ten years the West Michigan Industrial market was strong where there was strength in prevailing Industrial supply/demand conditions. Over this time period the market inventory increased by 8.0%. Further there was positive absorption (8.5% change), moderate decrease in the vacancy rate (-1.3% change) and considerable increase of the asking average rent (88.8% change). Analysis of the data indicates the West Michigan Industrial market has gone through three distinctive trends over the past ten years. TEN YEAR HISTORICAL TREND ANALYSIS PERIOD ADDED SUPPLY NET ABSORPTION VACANCY ASKING RENT 2015-2024 27,645,776 SF 29,343,306 SF 3.7%—2.4% $3.21—-$6.06 10 Yrs 8.0% 8.5% -1.3% 88.8% 2015-2017 6,419,601 SF 13,845,710 SF 3.7%—1.7% $3.21-8$3.57 3 Yrs 1.9% 4.0% -2.0% 11.2% 2018-2020 9,783,997 SF 3,232,129 SF 1.7%—3.2% $4.05-%4.30 3 Yrs 2.8% 0.9% 1.4% 6.2% 2021-2024 11,442,178 SF 12,265,467 SF 2.6%—2.4% $4.79-$6.06 4 Yrs 3.2% 3.4% -0.2% 26.5% ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 44
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MARKET ANALYSIS CONTINUED GRR250041 The three year period from 2015 to 2017 was highlighted with increased supply, significant positive absorption, decrease of vacancy rates and considerable increase of asking rent in the market. The next three year period from 2018 to 2020 featured increased supply, slight positive absorption, moderate increase of vacancy rates and considerable increase of asking rent levels. The most recent four year period from 2021 to 2024 featured increased supply, positive absorption, moderate decrease of vacancy rates and considerable increase of asking rent levels. Over the past ten years the market had a compound annual growth rate (CAGR) of 0.6% per year. Vacancy has ranged from 1.7% to 3.7% with an average of 2.5%. Vacancy decreased from 3.7% in 2015 to 1.7% in 2017, increased from 1.7% in 2018 to 3.2% in 2020 and decreased from 2.6% in 2021 to 2.4% in 2024. WEST MICHIGAN VACANCY & SUPPLY! (SF) 4% 370,000,000 4% 365,000,000 3% 360,000,000 3% 355,000,000 2% 350,000,000 2% 345,000,000 1% 340,000,000 1% 335,000,000 0% 330,000,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 SUPPLY VACANCY ©CoStar Over the past ten years asking rent has experienced a CAGR of 6.6%. Asking rent hit a low of $3.21/SF in 2015 and a high in 2024 at $6.06/SF. ASKING RENT 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 ASKING RENT ©CoStar In the past ten years a total of 27,645,776 SF were added to the supply with 29,343,306 SF of net absorption achieved during the same period. CONSTRUCTION/ABSORPTION & VACANCY. 6,000,000 4,000,000 L 2,000,000. 0 2015 2016 2017) 2018 2019 2020 2021 2022 2023 2024 NEW CONSTRUCTION NET ABSORPTION ©CoStar. ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 45
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MARKET ANALYSIS CONTINUED GRR250041 WEST MICHIGAN TRAILING FOUR QUARTER PERFORMANCE PERIOD SUPPLY NEW CONSTRUCTION NET ABSORPTION ~~ VACANCY ASKING RENT 2024 Q2 366,285,682 SF 531,881 SF 281,724 SF 2.4% $6.01/SF 2024 Q3 366,447,055 SF 161,373 SF (303,822) SF 2.5% $6.11/SF 2024 Q4 367,907,983 SF 1,460,928 SF 1,416,038 SF 2.5% $6.09/SF 2025Q1 368,792,183 SF 884,200 SF (927,586) SF 3.0% $6.02/SF Source As of Q1 2025 the West Michigan market has a total Industrial inventory of 368,792,183 SF with 11,078,197 SF vacant indicating a current vacancy rate of 3.0%. There was 884,200 SF completed last quarter, whereas there was 3,038,382 SF added in the last year. Over the past four quarters the West Michigan industrial market has experienced a moderate increase of supply. These key factors have resulted in positive net absorption, increase of vacancy rates and nominal increase of asking rent in the marketplace. WEST MICHIGAN VACANCY & ASKING RENTAL RATE (LAST FOUR QUARTERS) $6.12 $6.10 $6.08 $6.06 $6.04 $6.02 $6.00 $5.98 $5.96 2024Q2 2024Q3 2024Q4 2025Q1 ASKING RENT VACANCY ©CoStar Key supply/demand statistics for the most recent quarter, last year and historical averages are summarized below. Q1 2025 2024 Last 10 Total SF 368,792,183 367,907,983 356,033,002 Vacant SF 11,078,197 8,940,164 9,011,195 Market Vacancy 3.0% 2.4% 2.5% Construction Grow th Rate 0.2% 0.6% 0.6% Absorption Rate (0.3%) 0.3% 0.8% Average Asking Rent/SF $6.02 $6.06 $4.45 Source: Costar® Vacancy The Q1 2025 vacancy rate (3.0%) is slightly higher than last year (2.4%) and consistent with the average vacancy over the past ten years (2.5%). The historic vacancy trend indicates strong long-term demand for industrial space in the West Michigan market. The most recent vacancy trends demonstrate slightly inferior market conditions in comparison to the historic trend and suggest continued stability moving forward. Supply The inventory grew by 0.2% during Q1 2025, whereas the growth rate was 0.6% last year. Over the past ten years the West Michigan industrial market grew at a CAGR of 0.6%. The historic trend demonstrates a strong growth rate that was generally supported. The most recent trends show reduced growth in comparison to the historic trend in reaction to the current economic conditions. © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 46
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MARKET ANALYSIS CONTINUED GRR250041 WEST MICHIGAN INDUSTRIAL CONSTRUCTION ACTIVITY. SUMMARY STATUS NO. OF PROJECTS SIZE (SF) % OF SUPPLY Under Construction 29 9,404,693 2.5% Source: Costar® Absorption During Q1 2025 net absorption was -0.3% and net absorption was 0.3% over the last year. The West Michigan industrial market has established an overall trend of strong absorption (0.8%) over the past ten years. The historic absorption trend indicates strong long-term demand for industrial space in the West Michigan market. The most recent absorption trends demonstrate inferior market conditions in comparison to the historic trend and suggest continued stability moving forward. West Michigan Market Conclusion Based on the preceding analysis, the West Michigan Industrial market demonstrates sound fundamentals. Analysis of supply and demand factors indicate the market is currently stable with no evidence to prove this will change any time soon. The greatest strength of the market appears to be its low vacancy rates. There are no observed weaknesses of the market that stand out. BATTLE CREEK /W. CALHOUN COUNTY INDUSTRIAL SUBMARKET OVERVIEW The following is an analysis of supply/demand trends in the Battle Creek / W. Calhoun County Industrial submarket using information provided by CoStar. The table below presents historical data for key market indicators. BATTLE CREEK / W. CALHOUN COUNTY. HISTORICAL STATISTICS (LAST TEN YEARS PERIOD SUPPLY NEW CONSTRUCTION NET ABSORPTION VACANCY ASKING RENT 2015 19,037,616 SF 0 SF 97,813 SF 12% $2.61/SF 2016 19,023,928 SF 0 SF 87,718 SF 1.6% $3.13/SF 2017 19,023,928 SF 0 SF (175,175) SF 1.8% $3.29/SF 2018 19,002,480 SF 0 SF 193,458 SF 1.4% $3.60/SF 2019 19,114,247 SF 120,000 SF 125,864 SF 0.9% $3.92/SF 2020 19,414,515 SF 305,310 SF 36,242 SF 1.8% $3.18/SF 2021 19,414,515 SF 0 SF 127,616 SF 2.4% $4.34/SF 2022 19,414,515 SF 0 SF (657,678) SF 41% $4.85/SF 2023 19,458,244 SF 43,729 SF 694,348 SF 2.3% $3.79/SF 2024 19,458,244 SF 0 SF 136,355 SF 1.7% $5.25/SF CAGR 0.2% = = - 7.2% "Si y numbe d on information w hich is amended/updated on an on-go [9] Cos Over the past ten years the Battle Creek / W. Calhoun County Industrial submarket was strong where there was strength in prevailing Industrial supply/demand conditions. Over this time period the submarket inventory slightly increased by 2.5%. Further there was slight positive absorption (3.5% change), moderate increase in the vacancy rate (0.5% change) and considerable increase of the asking average rent (101.1% change). Analysis of the data indicates the Battle Creek / W. Calhoun County Industrial submarket has gone through three distinctive trends over the past ten years. ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY. SERVICES 47
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MARKET ANALYSIS CONTINUED GRR250041 TEN YEAR HISTORICAL TREND ANALYSIS PERIOD ADDED SUPPLY NET ABSORPTION VACANCY ASKING RENT 2015-2024 469,039 SF 666,561 SF 1.2%—1.7% $2.61—-85.25 10 Yrs 2.5% 3.5% 0.5% 101.1% 2015-2017 0 SF 10,356 SF 1.2%—1.8% $2.61—-8$3.29 3 Yrs 0.0% 0.1% 0.6% 26.1% 2018-2019 120,000 SF 319,322 SF 1.4%—0.9% $3.60—$3.92 2Yrs 0.6% 1.7% -0.5% 8.9% 2020-2024 349,039 SF 336,883 SF 1.8%—1.7% $3.18—$5.25 5 Yrs 1.8% 1.7% -0.1% 65.1% The three year period from 2015 to 2017 was highlighted with stable supply, slight positive absorption, moderate increase of vacancy rates and considerable increase of asking rent in the submarket. The next two year period from 2018 to 2019 featured slightly increased supply, positive absorption, moderate decrease of vacancy rates and considerable increase of asking rent levels. The most recent five year period from 2020 to 2024 featured slightly increased supply, slight positive absorption, moderate decrease of vacancy rates and considerable increase of asking rent levels. Over the past ten years the submarket had a compound annual growth rate (CAGR) of 0.2% per year. Vacancy has ranged from 0.9% to 4.1% with an average of 1.9%. Vacancy increased from 1.2% in 2015 t0 1.8% in 2017, decreased from 1.4% in 2018 to 0.9% in 2019 and decreased from 1.8% in 2020 to 1.7% in 2024. BATTLE CREEK /W. CALHOUN COUNTY VACANCY & SUPPLY 18,500,000 19,400,000 19,300,000 19,200,000 19,100,000 19,000,000 18,900,000 | 1] | 18,800,000 18,700,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 SUPPLY VACANCY ©CoStar Over the past ten years asking rent has experienced a CAGR of 7.2%. Asking rent hit a low of $2.61/SF in 2015 and a high in 2024 at $5.25/SF. ASKING RENT 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 ASKING RENT ©CoStar In the past ten years a total of 469,039 SF were added to the supply with 666,561 SF of net absorption achieved during the same period. ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 48
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MARKE YSIS GRR250041 CONTINUED CONSTRUCTION/ABSORPTION' & VACANCY 1,000,000, 500,000 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 NEW CONSTRUCTION NET ABSORPTION ©CoStar The following table summarizes the trailing four quarter performance of the Battle Creek / W. Calhoun County submarket. BATTLE CREEK / W. CALHOUN COUNTY TRAILING FOUR QUARTER PERFORMANCE PERIOD SUPPLY NEW CONSTRUCTION NET ABSORPTION VACANCY ASKING RENT 2024 Q2 19,458,244 SF 0 SF (34,415) SF 2.2% $5.13/SF 2024 Q3 19,458,244 SF 0 SF 157,178 SF 1.4% $5.53/SF 2024 Q4 19,458,244 SF 0 SF 64,167 SF 1.1% $5.31/SF 2025Q1 19,710,244 SF 252,000 SF (29,462) SF 2.5% $6.21/SF Source: Costar® As of Q1 2025 the Battle Creek / W. Calhoun County submarket has a total Industrial inventory of 19,710,244 SF with 488,209 SF vacant indicating a current vacancy rate of 2.5%. There was 252,000 SF completed last quarter, whereas there was 252,000 SF added in the last year. Over the past four quarters the Battle Creek / W. Calhoun County industrial submarket has experienced an increase of supply. There was also positive net absorption, increase in vacancy rates and increase of asking rent in the marketplace. BATTLE CREEK /W.CALHOUN COUNTY VACANCY & ASKING RENTAL RATE (LAST FOUR QUARTERS) - $7. $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 2024Q2 2024 Q3 2024 Q4 2025Q1 ASKING RENT VACANCY ©CoStar Key supply/demand statistics for the most recent quarter, last year and historical averages are summarized below. Q1 2025 2024 Last 10 Total SF 19,710,244 19,458,244 19,236,223 Vacant SF 488,209 326,898 368,181 Market Vacancy 2.5% 1.7% 1.9% Construction Grow th Rate 1.3% 0.0% 0.2% Absorption Rate (0.1%) 0.7% 0.3% Average Asking Rent/SF $6.21 $5.25 $3.80 Source ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY. SERVICES 49
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MARKET ANALYSIS CONTINUED GRR250041 Vacancy The Q1 2025 vacancy rate (2.5%) is slightly higher than last year (1.7%) and slightly higher than the average vacancy over the past ten years (1.9%). The historic vacancy trend indicates strong long-term demand for industrial space in the Battle Creek / W. Calhoun County submarket. The most recent vacancy trends demonstrate slightly inferior market conditions in comparison to the historic trend and suggest continued stability moving forward. Supply The inventory grew by 1.3% during Q1 2025, nor were there any new deliveries in the last year. BATTLE CREEK / W. CALHOUN COUNTY INDUSTRIAL CONSTRUCTION ACTIVITY SUMMARY STATUS NO. OF PROJECTS SIZE (SF) % OF SUPPLY Under Construction 1 2,500,000 11.3% Absorption During Q1 2025 net absorption was -0.1% and net absorption was 0.7% over the last year. The Battle Creek / W. Calhoun County industrial market has established an overall trend of stable absorption (0.3%) over the past ten years. The historic absorption trend indicates stable long-term demand for industrial space in the Battle Creek / W. Calhoun County submarket. The most recent absorption trends demonstrate inferior market conditions in comparison to the historic trend and suggest continued stability moving forward. Battle Creek / W. Calhoun County Submarket Conclusion Based on the preceding analysis, the Battle Creek / W. Calhoun County Industrial submarket demonstrates sound fundamentals. Analysis of supply and demand factors indicate the market is currently stable with no evidence to prove this will change any time soon. The greatest strength of the submarket appears to be its low vacancy rates. There are no observed weaknesses of the submarket that stand out. TRANSACTION TRENDS Sales Volume The volume of sale transactions for similar assets has been steady over the past six months within the marketplace. This assertion is supported by the comparable sales that were selected for the Sales Comparison Approach. These sales are somewhat recent transactions, which provides support for the reported market sales activity. Sales volume is directly impacted by the activity levels of sellers and buyers of this property type. Seller Activity Based on research completed on various listing sources including CoStar and LoopNet, properties similar to the subject in terms of pricing and overall investment appeal have general availability, with numerous listings offered within the marketplace. FALSE Most Probable Buyer Profile/Activity In the open market, the subject property type would command most interest from regional and local buyers that are actively pursuing similar owner-user properties. There is currently steady buyer demand for substitute properties of the subject based on the volume of sale transactions and reports by buyers, sellers and other market participants during confirmation of market transactions. The most probable buyer is an owner user. Transaction Trends Conclusion Based on the preceding analysis, there is an established sales market for the subject property. As previously discussed, the velocity of sale transactions has been steady over the past six months. Currently there is steady buyer demand, while there is general availability for this property type on the supply side. Based on these factors, © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 50
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MARKET ANALYSIS CONTINUED GRR250041 conditions are in equilibrium in regard to negotiating sale terms. One of the greatest observed strengths of this asset type is the particularly sound fundamentals compared to other commercial real estate sectors. SUBJECT PROPERTY ANALYSIS This market analysis has examined historical and current supply/demand trends for the subject property type on market and submarket levels. Next, transaction trends were researched and analyzed. The final step will be to draw conclusions from the market data and analyses based on their perceived influence on the subject property. The subject is a former recreational center that has most recently been utilized for light industrial / service use by way of leasing the two primary improvements. The property has a total net rentable area of 5,840 SF, which does not include the various sheds and canopy.. The market generally classifies the subject as owner-user property, but it could be leased. The most notable physical strength of the subject is its appealing construction quality of the two light industrial buildings. Tenant Appeal Conclusion Based on my analysis of the subject property and investigation of comparable properties in the marketplace, the subject is considered to have average overall tenant appeal if it were leased. Buyer Appeal Conclusion Based on my analysis of the subject property and investigation of substitute properties in the marketplace, the subject is considered to have average overall buyer appeal with an average competitive position if the asset was exposed to the open market. General Vacancy Conclusion As summarized in the table below this market analysis relied on various published data sources and field research for assessing how supply/demand conditions influence the long-term vacancy estimate of the subject property. CoStar 2025 Q1 LAST YR 10 YRAVG West Michigan Market 3.0% 2.4% 2.5% Battle Creek / West Calhoun County Sul 2.5% 1.7% 1.9% Subject 0.0% GENERAL VACANCY RATE CONCLUSIONS 4.0% Based on the subject's size, location and appeal, the submarket analysis findings warrant primary consideration. The 1% quarter 2025 submarket level analysis indicated a CoStar vacancy rate of 2.5%, 1.7% in 2024 and an average vacancy rate of 1.9% over the past ten years. The market level analysis indicated a CoStar vacancy rate of 3.0% in the 15! quarter of 2025, 2.4% in 2024, and an average vacancy rate of 2.5% over the past ten years. Based on my analysis of supply/demand trends and considering the subject's potential for multi-tenant, a general vacancy rate of 4.0% is concluded for both valuation dates. EXPOSURE TIME & MARKETING PERIOD Exposure time is defined as "An opinion, based on supporting market data, of the length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal.” (The Dictionary of Real Estate Appraisal, Appraisal Institute, 2022). Reasonable exposure time is impacted by the aggressiveness and effectiveness of a property’s exposure to market participants, availability and cost of financing, and demand for similar investments. Exposure time is best established based the recent history of marketing periods for comparable sales, discussions with market participants and information from published surveys. ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 51
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MARKET ANALYSIS CONTINUED GRR250041 The following information was taken into consideration to develop estimates of exposure time and marketing period for the subject property: EXPOSURE TIME & MARKETING PERIOD SOURCE QUARTER RANGE AVG LASTQ LASTYR PriceWaterhouse Coopers National Warehouse 4Q24 0 to 12 4 4 4 East North Central (ENC) Region Warehouse ~~ 4Q 24 2 to 6 4 4 4 Comparable Sales Dataset 1 to 18 7 AVERAGE 1 to 12 5 4 4 The availability of acquisition financing factors into exposure time. In recent quarters, financing has been available for well-positioned commercial real estate, particularly for stabilized assets within core MSAs and owner/user deals. For second tier or marginal properties, financing has been available but subject to more stringent requirements. Based on review of the local capital market, we conclude that adequate financing options would have been available to consummate a sale of the property on the date of value. Exposure Time Conclusion The preceding information generally supports an exposure time range from 1 to 12 months for relatively similar industrial properties. The subject property is of average quality and is in average condition. Based on its overall physical and locational characteristics, the subject has average overall appeal to partial owner/users and/or owner/users. Considering these factors, a reasonable estimate of exposure time for the subject property is 12 months or less. Marketing Period Conclusion Marketing period is very similar to exposure time, but reflects a projected time period to sell the property, rather than a retrospective estimate. We have reviewed open listings and discussed the market with local participants, and given the nature of the subject property, we feel that a time period of 12 months or less is supported for the subject's marketing period. © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 52
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HIGHEST & BEST USE ANALYSIS GRR250041 INTRODUCTION The highest and best use of an improved property is defined as that reasonable and most probable use that will support its highest present value. The highest and best use, or most probable use, must be legally permissible, physically possible, financially feasible, and maximally productive. This section develops the highest and best use of the subject property As-Vacant and As-Improved. AS-VACANT ANALYSIS Legal Factors The legal factors that possibly influence the highest and best use of the subject site are discussed in this section. Private restrictions, zoning, building codes, historic district controls, and environmental regulations are considered, if applicable to the subject site. Permitted uses of the subject's LI (Light Industrial) zoning were listed in the Zoning Analysis section and include commercial development. The potential use that meets the requirements of the legal permissibility test is industrial development. Physical & Locational Factors Regarding physical characteristics, the subject site is irregular in shape and has sloping topography with average access and fair/average exposure. The subject is surrounded by commercial development and vacant land. Given the subject's location and surrounding uses, the subject site is desirable for industrial development. Of the outright permitted uses, physical and locational features best support development of an industrial property as market conditions warrant for the site’s highest and best use as-vacant. Feasibility Factors The financial feasibility of those uses that meet the legal and physical tests discussed is analyzed further in this section. Supply and demand conditions affect the financial feasibility of possible uses. Indicators of feasibility, which typically indicate favorable or non-favorable supply and demand conditions, include construction financing and proposed projects. There has been a lack of new commercial construction throughout the subject's area. This is evidence that new commercial construction is not feasible at this time. Financial feasibility factors generally support a three to five-year hold prior to development. As-Vacant Conclusion Based on the previous discussion, the subject's highest and best use as-vacant is concluded to be development of an industrial property as market conditions warrant. AS-IMPROVED ANALYSIS Legal Factors The subject property, as-improved, is an industrial other industrial project that is zoned LI (Light Industrial). The subject's improvements represent a legal, conforming use. The legal factors influencing the highest and best use of the property support the subject's use as-improved and in use for service use / industrial use. Physical & Locational Factors The physical and locational characteristics of the subject improvements have been previously discussed in this report. In summary, the subject's improvements were constructed in 1987/1988 and have a remaining economic life of 25 years based on my estimate. The project is of average quality construction and in average condition, with adequate service amenities. The subject improvements as-improved are sufficiently supported by site features including its irregular, sloping topography, average access and fair/average exposure. Further, the subject's location supports the subject improvements as-improved with similar and homogeneous developments present in the subject's immediate market area. Physical and locational factors influencing the highest and best use of the property support the subject's use as-improved for industrial / service use. ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY. SERVICES 53
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HIGHEST & BEST USE ANALYSIS CONTINUED GRR250041 Alternative Uses & Feasibility Factors In addition to legal and physical considerations, analysis of the subject property as-improved requires the treatment of two important issues: 1) consideration of alternative uses for the property; and 2) the marketability of the most probable use. The five possible alternative treatments of the property are demolition, expansion, renovation, conversion, and the subject's use as-improved. » Demolition The subject improvements contribute significant value above the current land value. Therefore, demolition is not applicable in this case. » Expansion The subject property comprises approximately 38.26 acres (1,666,587 SF), although | have estimated that only 10-acres is suitable for use / development. | have estimated that the two industrial buildings require about 3.25-acres to operate, while the remaining 6.75-acres are considered surplus land (balance is unusable for a myriad of reasons noted previously. Therefore, expansion of the subject is an option, however, not considered a viable option at the current time (except for a build to suit scenario. » Renovation The subject property is approximately 38 years old and is in average condition. Renovating the subject is an option. However, the feasibility of said renovation would depend on the scope of work and the associated costs. Based on the scope of work agreed upon for this assignment, we have valued the subject in its as-is condition. y Conversion Conversion is neither appropriate nor applicable to this property. » Continued Use “As-Is” The final option is the continued use of the property "As-Is." This is legal, physically possible, financially feasible, and maximally productive. Therefore, continued use as an industrial / service use property is considered appropriate. Among the five alternative uses, the subject's use as-improved is supported to be its Highest and Best Use. Marketability Factors In general supply/demand conditions and immediate market area trends support viable short and long-term operations of the subject's use as-improved. Based on my analysis of the subject property and investigation of comparable properties in the marketplace, the subject is considered to have average overall tenant appeal if it were leased. Based on my analysis of the subject property and investigation of substitute properties in the marketplace, the subject is considered to have average overall buyer appeal with an average competitive position if the asset was exposed to the open market. As-Improved Conclusion Based on the previous discussion, the highest and best use of the subject property as-improved is concluded to be continued use as an industrial / service use property. © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 54
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VALUATION METHODS GRR250041 INTRODUCTION The following presentation of the appraisal process deals directly with the valuation of the subject property. The following paragraphs describe the standard approaches to value that were considered for this analysis. INCOME APPROACH The Income Approach is based on the premise that properties are purchased for their income producing potential. It considers both the annual return on the invested principal and the return of the invested principal. This valuation technique entails careful consideration of contract rents currently in place, projected market rents, other income sources, vacancy allowances, and projected expenses associated with the efficient operation and management of the property. The relationship of these income estimates to property value, either as a single stream or a series of projected streams, is the essence of the income approach. The two fundamental methods of this valuation technique include Discounted Cash Flow and Direct Capitalization. >» Discounted Cash Flow (DCF) The DCF analysis models a property's performance over a buyer's investment horizon from the date of acquisition through the projected sale of the property at the end of the holding period. Net cash flows from property operations and the reversion are discounted at a rate reflective of the property’s economic and physical risk profile. > Direct Capitalization This method analyzes the relationship of one year’s stabilized net operating income to total property value. The stabilized net operating income is capitalized at a rate that implicitly considers expected growth in cash flow and growth in property value over a buyer's investment horizon. The implied value may be adjusted to account for non-stabilized conditions or required capital expenditures to reflect an as is value. Characteristics specific to the subject property warrant that this valuation technique is developed. Development of the Income Approach is a specific scope requirement of this assignment. The subject is an investment property; therefore, the Income Approach represents the decision making process of knowledgeable buyers and sellers of this property type. The Direct Capitalization method is used in this analysis. Discounted Cash Flow analysis does not contribute substantially to estimating value beyond the direct capitalization method and is not used in this analysis. SALES COMPARISON APPROACH The Sales Comparison Approach is based on the principle of substitution, which asserts that no one would pay more for a property than the value of similar properties in the market. This approach analyzes comparable sales by applying transactional and property adjustments in order to bracket the subject property on an appropriate unit value comparison. The sales comparison approach is applicable when sufficient data on recent market transactions is available. Alternatively, this approach may offer limited reliability because many properties have unique characteristics that cannot be accounted for in the adjustment process. Characteristics specific to the subject property warrant that this valuation technique to be developed. Development of the Sales. Comparison Approach is a specific scope requirement of this assignment. Sufficient sales data is available to provide a credible value estimate by the Sales Comparison Approach. Based on this reasoning, the Sales Comparison Approach is presented within this appraisal. ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY. SERVICES 55
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VALUATION METHODS CONTINUED GRR250041 LAND VALUATION Development land in the subject marketplace is most often valued utilizing the Sales Comparison Approach. Characteristics specific to the subject property warrant that a site value is developed. Development of the subject site value is a specific scope requirement of this assignment. The subject site has surplus land that is not separately marketable from the economic site that requires valuation. Within the Site Valuation section, only the subject's surplus land is valued. COST APPROACH The Cost Approach is a set of procedures through which a value indication is derived for the fee simple estate by estimating the current cost to construct a reproduction of (or replacement for) the existing structure, including an entrepreneurial incentive or profit; deducting depreciation from the total cost; and adding the estimated land value. Adjustments may then be made to the indicated value of the fee simple estate in the subject property to reflect the value of the property interest being appraised. For investment properties, this valuation technique is most often relied upon as a test of financial feasibility for proposed construction. Characteristics specific to the subject property do not warrant that this valuation technique is developed. Development of the Cost Approach is not a specific scope requirement of this assignment. The Cost Approach has limited applicability due to the age of the improvements and lack of market based data to support an estimate of accrued depreciation. Based on the preceding information, the Cost Approach will not be presented. RECONCILIATION OF VALUE CONCLUSIONS The Income (Direct Capitalization) and Sales Comparison approaches are used to value the subject property. The surplus land value will be developed separately and added to the Income and Sales Comparison approach value indicators. After which, the as-is market value, inclusive of the contributory value of the surplus land, will be reconciled into the final opinion of market value in the Analysis of Value Conclusions section. © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 56
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INCOME APPROACH GRR250041 INTRODUCTION The Income Approach is based on the premise that properties are purchased for their income producing potential. It considers both the annual return on the invested principal and the return of the invested principal. This valuation technique entails careful consideration of contract rents currently in place, projected market rents, other income sources, vacancy allowances, and projected expenses associated with the efficient operation and management of the property. The relationship of these income estimates to property value, either as a single stream or a series of projected streams, is the essence of the income approach. As previously discussed within the Valuation Methods section, the Direct Capitalization method is used in this analysis, and Discounted Cash Flow analysis is not developed. Direct Capitalization This method analyzes the relationship of one year’s stabilized net operating income to total property value. The stabilized net operating income is capitalized at a rate that implicitly considers expected growth in cash flow and growth in property value over a buyer's investment horizon. The first step in the direct capitalization method is to estimate the subject's durable rental income through reconciliation of the subject's in-place lease terms and market rent analysis. Next, | analyze other income items including reimbursements and miscellaneous revenue. Then, vacancy allowance and operating expenses are estimated based on analysis of the subject and market indicators. Finally, the resulting net operating income is capitalized at an appropriate supported rate. The implied value may be adjusted to account for non-stabilized conditions or required capital expenditures to reflect an as is value. Given the appraisal problem and defined scope of work, the following table summarizes the value scenarios and Income Approach methods developed within this appraisal report: INCOME APPROACH VALUE SCENARIOS VALUE METHODS USED SCENARIO DCF DIRECT CAP Retrospective Value (December 31, 2023) v Retrospective Value (December 31, 2024) Vv Income Approach Framework The following identifies the primary sections and order in which the Income Approach is developed. o Subject Lease Analysis e Market Rent Analysis e Contract Income Risk Analysis e Income & Expense Analysis o Capitalization Rate Analysis e Direct Capitalization e Adjustments to Value SUBJECT LEASE ANALYSIS The subject property is being valued in the fee simple position, so we will focus on market rent. RETROSPECTIVE VALUE AS-IS — DECEMBER 31, 2023 MARKET RENT ANALYSIS This section examines competitive comparable properties within the marketplace to establish our opinion of market rent for the subject property. This allows for a comparison of the subject property's contract to what is attainable in the current market. ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY. SERVICES 57
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INCOME APPROACH CONTINUED GRR250041 | have assumed Modified Gross terms, where the tenant pays suite utilities, interior maintenance and janitorial in addition to rent, and the owner pays for real estate taxes, property insurance, repairs and maintenance, in addition to management and administration expenses. Adjustment Process Quantitative adjustments are made to the comparable leases. The following adjustments or general market trends were considered for the basis of market rent analysis. Transactional Adjustments If warranted, the comparable leases were adjusted for varying lease structures, atypical concessions and market conditions. The adjustment for rent concession equivalency quantifies the differences between market standard free rent and tenant improvement allowances compared to those of the lease transaction, which were divided by the comparable’s lease term, and applied to the beginning “face” rent of the comparable lease. The market conditions adjustment is explained at the end of this section. Concession Adjustment The differences between free rent and tenant improvements (+/-) is divided by the comparable’s lease term, and applied to the beginning base rent of the comparable lease. This methodology does not take into account amortization of rental increases over the lease term. The rent concession adjustment calculation is outlined below: CONCESSION ADJUSTMENT SUMMARY FREE RENT ADJUSTMENT TI ADJUSTMENT Comparable Free Rent Comparable TI Less: Market Standard Less: Market Standard Equals: Free Rent Adjustment Equals: TI Adjustment Divided by Comparable Monthly Lease Term Divided by Comparable Lease Term Times: Beginning Base Rent Equals: Adjustment Equals: Adjustment Property Adjustments Quantitative percentage adjustments were made for location and physical characteristics such as size, age, condition, exposure and parking ratio. Where possible the adjustments applied are based on paired data or other statistical analysis. It should be stressed that the adjustments are subjective in nature and are meant to illustrate my logic in deriving a value opinion for the subject site. Tenant Space Adjustments The lease comparables were further adjusted to the subject to account for tenant space specific characteristics such as size and space functionality. Transactional market conditions adjustment was based on a review of historical sale data, market participant interviews and review of current versus historical pricing. Based on my research, the following table summarizes the market conditions adjustment applied in this analysis. MARKET CONDITIONS ADJUSTMENT Per Year As Of December 2023 (As-Is) 2% The analysis applies an upward market conditions adjustment of 2% annually reflecting the conditions between the oldest comparable lease date up through the effective valuation date. ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 58
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INCOME APPROACH CONTINUED GRR250041 ANALYSIS OF COMPARABLE WAREHOUSE LEASES The Warehouse lease analysis is used to derive an opinion of market rent and correlating leasing assumptions for the Warehouse MLA category. The following table includes a summary of the comparables selected for this analysis, including relevant listings and actual leases at competing properties. Following the table is an adjustment grid, analysis and my conclusion. Datasheets containing more details of the comparables are presented later in this section. WAREHOUSE LEASE SUM COMPARABLE SUBJECT LEASE1 LEASE2 LEASES Name Former Recreational Industrial Building Industrial Building Industrial Building Industrial Building Industrial Center Manufacturing Address 2000 East Columbia Ave. 927 Industrial 904 Hotop Avenue ~~ 692 South 8th Street 1338 Branch Street 2015 Schippers Ln Parkw ay City Battle Creek Plainw ell Kalamazoo Kalamazoo Kalamazoo Kalamazoo State Mi Mi Mi Mi MI Mi Zip 49014 49080 49048 49009 49001 49048 PHYSICAL INFORMATION Property Type Industrial Industrial Industrial Industrial Industrial Industrial NRA 5,840 14,700 20,075 15,600 36,300 17,440 Occupancy 100.0% 100.0% 42.0% 100.0% 20.0% 100.0% Location Average Average/Good Average Average/Good Average Average Quality Average Average Average Average/Good Average Average Condition Average Average/Good Fair/Average Average/Good Average Average Exposure Fair/Average Average Average Average Average Average Access Average Average Average Average Average Average Year Built 1987 1991 1970 2001 1988 1920 Clear Height 12-13" 13 Feet 35 Feet 17-26 Feet 18 Feet 12 Feet LEASE INFORMATION Tenant Name Industrial Tenant Pro Turf Move Up NA Jetech Inc Commencement Date 12/10/2023 9/26/2023 9/24/2023 8/17/2023 5/7/2023 Lease Type New New New New New Lease Status Signed Signed Signed Signed Signed Rate Type MG MG NNN MG NNN Size (SF) 4,100 8,900 15,600 8,800 17,440 % Office 22.0% 15.0% 12.8% 15.1% 13.4% Rent ($/SF/Yr.) $8.00 $4.95 $5.75 $6.50 $4.00 Avg. Escalation/Yr - - - - 2.0% © 2025 COLLIERS INTERNATION. 59
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INCOME APPROACH CONTINUED GRR250041 SE LEASE R ST 5 Orangeville 3 — = hid Richland: SU Lake | 7 sma levels ho Park;0akiRark £ Ra East]Leroy; : iy E Ere at HEY 8 he vt) #27 Map data ©2025 COMPARABLE KE ComP DISTANCE ADDRESS LEASEDATE SF SUBJECT = 2000 East Columbia Ave., Battle Creek, MI & No. 1 26.4 Miles ~~ 927 Industrial Parkw ay, Plainw ell, Mi 12/10/2023 4,100 No.2 21.5 Miles 904 Hotop Avenue, Kalamazoo, MI 9/26/2023 8,900 No. 3 27.7 Miles 692 South 8th Street, Kalamazoo, Mi 9/24/2023 15.600 No. 4 21.2Miles 1338 Branch Street, Kalamazoo, MI 8/17/2023 8,800 No.5 20.8 Miles 2015 Schippers Ln, Kalamazoo, MI 5/7/2023 17,440 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES
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INCOME APPROACH CONTINUED GRR250041 WAREHOU MENT TABLE SUBJECT LEASES LEASES Name Former Recreational Industrial Building Industrial Building Industrial Building Industrial Building Industrial Center Manufacturing Address 2000 East Columbia 927 Industrial 904 Hotop Avenue ~~ 692 South 8th Street 1338 Branch Street 2015 Schippers Ln Ave. Parkw ay City Battle Creek Plainw ell Kalamazoo Kalamazoo Kalamazoo Kalamazoo NRA 5,840 14,700 20,075 15,600 36,300 17,440 Year Built 1987 1991 1970 2001 1988 1920 Tenant Name Industrial Tenant Pro Turf Move Up NA Jetech Inc Commencement Date 12/10/2023 9/26/2023 9/24/2023 8/17/2023 5/7/2023 Lease Type New New New New New Lease Status Signed Signed Signed Signed Signed Rate Type MG MG NNN MG NNN Size (SF) 4,100 8,900 15,600 8,800 17,440 Rent ($/SFiYr.) $8.00 $4.95 $5.75 $6.50 $4.00 Avg. Escalation/Yr - - - - 2.0% TRANSACTIONAL ADJUSTMENTS Lease Type $0.00 $0.00 $3.00 $0.00 $3.00 Concessions $0.00 $0.00 $0.00 $0.00 $0.00 Market Conditions* 0% 1% 1% 1% 1% Subtotal Eff Rent $8.01 $4.98 $8.80 $6.55 $7.09 PROPERTY ADJUSTMENTS Location Average Average/Good Average Average/Good Average Average Adjustment -10% 0% -10% 0% 0% Size (Property) 5,840 14,700 20,075 15,600 36,300 17,440 Adjustment 0% 0% 0% 0% 0% Quality Average Average Average Average/Good Average Average Adjustment 0% 0% -10% 0% 0% Condition Average Average/Good Fair/Average Average/Good Average Average Adjustment -10% 10% -10% 0% 0% Exposure Fair/Average Average Average Average Average Average Adjustment 0% 0% 0% 0% 0% Access Average Average Average Average Average Average Adjustment 0% 0% 0% 0% 0% Age 1987 1991 1970 2001 1988 1920 Adjustment 0% 0% 0% 0% 0% Clear Height 12-13" 13 Feet 35 Feet 17-26 Feet 18 Feet 12 Feet Adjustment 0% -10% -5% -3% 0% Subtotal Property Adj -20% 0% -35% -3% 0% TENANT SPACE ADJUSTMENTS Size (Tenant) 5,840 4,100 8,900 15,600 8,800 17,440 Adjustment 0% 0% 5% 0% 5% Subtotal Tenant Adj 0% 0% 5% 0% 5% TOTAL ADJUSTED RENT $6.41 $4.98 $6.16 $6. $7.45 STATISTICS UNADJUSTED ADJUSTED MARKET CONCESSIONS" Low $4.00 $4.98 Lease Type Modified Gross HIGH $8.00 $7.45 MEDIAN $5.75 $6.38 AVERAGE $5.84 $6.27 * Market Conditions Adjus - Compound annual change in market conditions: 2% Date of Value (for adjustment 123 lations ): 12/3 ©2025 COLLIERS INTERNATION ALUATION & ADVISORY 61
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INCOME APPROACH CONTINUED GRR250041 Warehouse Lease Analysis The comparables indicate an adjusted lease rate range from $4.98 to $7.45/SF, with a median of $6.38/SF and an average of $6.27/SF. The range of total gross adjustment applied to the comparables was from 3% to 41%, with an average gross adjustment across all comparables of 18%. The level of total adjustment applied to the comparables is considered to be moderate. Overall, the availability of market data and extent of analysis was adequate to develop a reasonably credible lease rate conclusion. The adjustment process for each comparable is discussed in the following paragraphs. Discussion of Adjustments Comparable 1 ($6.41/SF adjusted) required a total upward transaction adjustment of $0.01. This comparable required a total downward adjustment of -20% for property characteristics. The total gross adjustment applied to this comparable was 20%. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 2 ($4.98/SF adjusted) required a total upward transaction adjustment of $0.03. This comparable required adjustments for property characteristics, however these resulted in a net adjustment of 0%. The total gross adjustment applied to this comparable was 21%. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 3 ($6.16/SF adjusted) required a total upward transaction adjustment of $3.05. This comparable required a total downward adjustment of -30% for property characteristics. The total gross adjustment applied to this comparable was 41%. The substantial level of gross adjustments required for this comparable was justified due to the comparable's varying attributes. Considering these factors, this comparable is given secondary consideration as a value indicator for the subject. Comparable 4 ($6.38/SF adjusted) required a total upward transaction adjustment of $0.05. This comparable required a total downward adjustment of -3% for property characteristics. The total gross adjustment applied to this comparable was 3%. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants primary consideration as a value indicator for the subject. Comparable 5 ($7.45/SF adjusted) required a total upward transaction adjustment of $3.09. This comparable required a total upward adjustment of 5% for property characteristics. The total gross adjustment applied to this comparable was 6%. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants secondary consideration as a value indicator for the subject. © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 62
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INCOME APPROACH CONTINUED GRR250041 WAREHOUSE SPACE MARKET RENT CONCLUSION — DECEMBER 31,2023 The comparables indicate an adjusted lease rate range from $4.98 to $7.45/SF, with a median of $6.38/SF and an average of $6.27/SF. Based on the results of the preceding analysis, Comparable 1 ($6.41/SF adjusted) and Comparable 4 ($6.38/SF adjusted) are given primary consideration for the lease rate conclusion. The following table summarizes the analysis of the comparable leases and the Warehouse market rent conclusion. WAREHOUSE LEASE CONCLUSION TABLE LEASE ADJUSTMENT NET GROSS OVERALL LEASE RATE TRANSACTIONAL' ADJUSTED PROPERTY? FINAL ADJ % ADJ % COMPARISON 1 $8.00 $0.01 $8.01 -20% $6.41 -20% 20% PRIMARY 2 $4.95 $0.03 $4.98 0% $4.98 1% 21% SECONDARY 3 $5.75 $3.05 $8.80 -30% $6.16 7% 41% SECONDARY 4 $6.50 $0.05 $6.55 -3% $6.38 -2% 3% PRIMARY 5 $4.00 $3.09 $7.09 5% $7.45 86% 6% SECONDARY Low $4.98 AVERAGE $6.27 HIGH $7.45 MEDIAN $6.38 ACHIEVABLE MRKT RANGE CONCLUSION Warehouse $4.98 - $7.45 $6.50 "Cumulative 2Additive (Includes Tenant Adjustments) Comparable Rent Data Sheets The following pages present the rent comparable data sheets that were used in the prior analysis. ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES
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COME APPROACH CONTINUED GRR250041 Name Industrial Building Address 927 Industrial Parkw ay City, State, Zip Code Plainw ell, Mi, 49080 MSA Kalamazoo-Portage, MI Net Rentable Area (NRA) 14,700 Year Built 1991 Occupancy 100.0% Site Size 70,131 SF Site Coverage 21% Parking Spaces 10 Parking Ratio 0.70 Clear Height 13 Feet = \ > % Office 18.4% INDUSTRI UILDING Dock Doors 3 Name Jodi Milks Cross Docked No Source Leasing Broker Date / Phone Number 01/04/2024 Confidential REMARKS This comparable represents a multi-tenant industrial building located in the City of Plainw ell. The building has municipal utilities, central air, and 3 phase, 480V pow er. Suite Cw as marketed for lease at $8.00 PSF, MG, for 3 months before a lease w as signed in December 2023. Suite C has 2 overhead doors. The tenant pays utilities, trash, janitorial, phone and data. TENANT NAME RATE TYPE SIZE START DATE TERM LEASERATE ADJ LEASERATE Industrial Tenant MG 4,100 12/10/2023 24 $8.00 $6.41 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY
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INCOME APPROACH CONTINUED GRR250041 COMPARABLE 2 PHYSICAL INFORMATION Name Industrial Building Address 904 Hotop Avenue City, State, Zip Code Kalamazoo, Mi, 49048 Net Rentable Area (NRA) 20,075 Y ear Built 1970 Occupancy 42.0% Site Size 101,930 SF Site Coverage 20% Construction Steel Clear Height 35 Feet % Office 14.1% Grade Doors 2 Cross Docked No INDUSTRIAL BUILDING CONFIRMATION Name Jeff Chrystal Source Leasing Broker Date / Phone Number 01/16/2024 +1269-207-5431 REMARKS This subject property is an industrial building w ith 20,075 square feet of net rentable area. Built in 1970, there are 2 grade level doors and 0 dock doors, a 35 feet clearance, and sits on 2.34 acres. The space was leased on September 26, 2023 at the rate of $4.35 MG per year to Pro Turf. The lease termw as not disclosed. TENANT NAME RATE TYPE SIZE START DATE LEASERATE LEASERATE Pro Turf NG 8,900 09/26/2023 $4.95 $4.98 ©2025 COLLIERS INTERNATIONAL VALUATION & Al SORY SERVICES 65
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INCOME APPROACH
CONTINUED
GRR250041
COMPARABLE 3
PHYSICAL INFORMATION
Name
Industrial Building
~\
Address
692 South 8th Street
ZF
City, State, Zip Code
Kalamazoo, MI, 49009
al
Bh
{4
MSA
Kalamazoo-Portage, Mi
Net Rentable Area (NRA)
15,600
Year Built
2001
Occupancy
100.0%
Site Size
381,585 SF
Site Coverage
4%
Construction
Metal/Masonry
Parking Spaces
33
ve
2
:
Parking Ratio
2.10
;
-
ge
=
% Office
12.8%
Name
David Keyte
Grade Doors
2
Source
Leasing Broker
Dock Doors
1
Date / Phone Number
02/09/2024
+1269 373 8104
Cross Docked
No
REMARKS
This comparable represents an industrial building located in Oshtemo
Tow nship. This freestanding building sits on a parcel of land containing 2
other industrial buildings. The building is accessed via a shared drive, and is
not visible from any main roadw ays. The space w as marketed for lease at
$5.75 PSF, NNN, for a 3 year term, for one month before the tenant signed a
lease at full asking price.
TENANT NAME
RATE TYPE
SIZE
START DATE
TERM
LEASERATE
ADJ LEASERATE
Move Up
NNN
15,600
09/24/2023
36
$5.75
$6.16
© 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES
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INCOME APPROACH CONTINUED GRR250041 COMPARABLE 4 PHYSICAL INFORMATION Name Industrial Building Address 1338 Branch Street City, State, Zip Code Kalamazoo, M, 49001 Net Rentable Area (NRA) 36,300 Year Built 1988 Occupancy 20.0% Site Size 103,237 SF Site Coverage 35% Construction Masonry Clear Height 18 Feet Grade Doors 8 Dock Doors 0 Cross Docked No INDUSTRIAL BUILDING Name Confidential Source CoStar Date / Phone Number 05/21/2025 Confidential This subject property is an industrial building w ith 8,800 square feet of net rentable area. Built in 1988, there are 8 grade level doors and 0 dock doors, a 18 feet clearance, and sits on 2.37 acres. The space was leased on August 17, 2023 at the rate of $6.50 MG per year. The lease term and tenant's name w as not disclosed. TENANT NAME RATE TYPE SIZE START DATE LEASERATE ADJ LEASE RATE NA NG 8,800 08/17/2023 $6.50 $6.38 ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY. SERVICES 67
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INCOME APPROACH CONTINUED GRR250041 COMPARABLE 5 Name Industrial Manufacturing Address 2015 Schippers Ln City, State, Zip Code Kalamazoo, M., 49048 MSA Kalamazoo-Portage, Mi Net Rentable Area (NRA) 17.440 Year Built 1920 Y ear Renovated 1970 Occupancy 100.0% Site Size 95,832 SF Site Coverage 18% Construction Masonry Parking Spaces 30 Parking Ratio 1.70 INDUSTRIAL MANUFA RING Clear Height 12 Feet Name Trent Wieringa % Office 13.4% Source Leasing Broker Grade Doors 1 Date / Phone Number 01/16/2024 +1616 481 3868 Dock Doors 3 REMARKS Cross Docked No The property located at 2015 Schippers Lane is a standalone industrial building on 2.25 acres. The property is located just East of Dow ntow n Kalamazoo and has nearby access to 1-94 and US-131 highw ays. The industrial portion of the building features access to 3 docks, 1 drive-in door and 1,200 amps of 480v/3-phase pow er. Public records did not have a year built, so it has been estimated to partially been constructed in the early 1900's and expanded in the 1970's. An initial term of five-years w as estimated by the appraiser. TENANT NAME RATE TYPE SIZE START DATE TERM LEASERATE = ADJ LEASERATE Jetech Inc NNN 17,440 05/07/2023 60 $4.00 $7.45 POTENTIAL GROSS RENT My analysis and conclusions of the subject's potential gross rent are detailed as follows: POTENTIAL GROSS RENT SF Leased 5,360 Market Rent $6.50 Expense Structure Modified Gross Contract or Market Market Annual $34,840 PSF (YR) $6.50 PSF (MO.) $0.54 INCOME & EXPENSE ANALYSIS The preceding sections estimated potential gross rent and addressed risk factors associated with the rental income of the subject property. The following section presents my analysis and conclusions for other revenue, vacancy and credit loss and operating expenses. ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 68
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CONTINUED INCOME APPROACH OTHER INCOME GRR250041 In the following section, | analyzed and made conclusions for the other income items of the subject property. The individual income items were then segregated into Expense Reimbursements and Miscellaneous Income for further analysis. Expense Reimbursements Based on my analysis of the subject lease and historical operations, there are no expense reimbursements present. The base lease payments are inclusive of all operatin completed directly by the tenant. Additional Revenue g expenses except those noted previously paid or Based on my analysis of the subject's historical operations, there are no additional revenue generators present. VACANCY AND CREDIT LOSS General vacancy was discussed in depth in the market analysis section of this report. Please reference that discussion for a full analysis. Regarding credit loss, non-sophisticated investors often lump this allocation within the general vacancy loss factor when using direct capitalization. Whereas, sol apply credit loss in a range from none to 2% phisticated investors generally depending on the quality of tenant mix and current economic conditions. My general vacancy and credit loss conclusions are summarized in the following table and are intended to mirror behavior of typical purchasers of the subject. General Vacancy Rate Credit Loss Conclusion VACANCY & CREDIT LOS 4.0% 1.0% Total 5.0% ANALYSIS OF OPERATING EXPENSES The following chart summarizes comparable expenses. EXPENSE COMPARABLES City Novi Westland Westland Madison Heights - State Mi Ml Mi Mm - - - Expense Year 2024 2023 2024 2024 2023 2024 2024 Actual/Budget Actual Proforma Proforma Proforma - - - Net Rentable Area 12,041 20,000 31,503 13,500 12,041 31,503 19,261 Year Built 2000 1986 1983 1959 1959 2000 1982 EFFECTIVE GROSS INCOME $23.51 $8.43 $9.50 $17.29 $8.43 $23.51 $14.68 EXPENSE ITEMS $ISF ~~ %EGI $ISF %EGI $/SF %EGI $/SF %EGI Low HIGH AVG Real Estate Taxes $2.04 87% $1.44 171% $1.08 11.4% $0.96 5.6% $0.96 $2.04 $1.38 Property Insurance $0.15 0.6% $0.18 2.1% $0.23 24% $0.67 3.9% $0.15 $0.67 $0.31 Common Area Maintenance $5.69 24.2% $1.44 17.0% $0.04 0.4% $0.74 4.3% $0.04 $5.69 $1.98 Management Fees $1.33 57% $0.28 3.3% $0.30 3.1% $0.87 5.1% $0.28 $1.33 $0.69 %EGI 5.7% 3.3% 3.1% 5.1% 3.1% 5.7% 4.3% Administrative Fees $0.38 1.6% $0.08 1.0% = = - EH $0.08 $0.38 $0.23 TOTAL EXPENSES ($/SF) $9.59 40.8% $3.42 40.6% $1.65 17.3% $324 18.7% $1.65 $9.59 $4.47 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 69
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INCOME APPROACH GRR250041 CONTINUED CONCLUSION OF OPERATING EXPENSES In the following section | discuss the individual expense conclusions for the subject property. EXPENSE ANALYSIS & CONCLUSIONS REAL ESTATE TAXES ANALYSIS SUBJECT EXPENSE COMPS A discussion of the subject's real estate tax burden was included YEAR TOTAL $ISF %EGI COMP $/SF %EGI in an earlier section of this report. Ordinarily, property taxes w ould 1 $2.04 8.7% be calculated and deducted from the operating expenses of the 2 $144 17.1% property. In this instance, how ever, the appropriate tax amount is 3 $1.08 11.4% not know n since it is the purpose of this report to determine w hat 4 $096 56% the appropriate value on which taxes are to be based. In such cases, the valuation applies a tax loaded capitalization rate. This is achieved by adding the tax rate to the capitalization rates and the result is the rate applied in this approach. This will be show n later CONCLUSION ~ - - AVG $1.38 10.7% in this section. PROPERTY INSURANCE ANALYSIS SUBJECT EXPENSECOMPS This expense includes all premiums and costs incurred for YEAR TOTAL $ISF %EGI COMP $/SF %EGI insurance covering structures, public liability, rental value, 1 $0.15 06% equipment and bonding of employees. The conclusion is based on 2 $0.18 2.1% theexpense comparable information. 3 $023 24% 4 $0.67 3.9% CONCLUSION $1,460 $0.25 40% AVG $0.31 2.3% COMMON AREA MAINTENANCE ANALYSIS SUBJECT EXPENSE COMPS This consists of all expenses related to the common area YEAR TOTAL $ISF °%EGI COMP $/SF %EGI maintenance of the subject including the costs of payroll, employee 1 $5.69 24.2% benefits, service contracts, and maintenance materials and 2 $144 17.0% supplies purchased for the subject. The conclusion is based on the 3 $0.04 04% expense comparable information. 4 $0.74 4.3% CONCLUSION $5,840 $1.00 16.2% AVG $1.98 11.5% MANAGEMENT FEES ANALYSIS SUBJECT EXPENSECOMPS This expense reflects the professional management service for the YEAR TOTAL $ISF %EGI COMP $/SF %EGI subject. The conclusion is based on the expense comparable 1 $1.33 5.7% information. 2 $0.28 3.3% 3 $030 3.1% 4 $0.87 51% CONCLUSION $1,442 $0.25 4.0% AVG $0.69 4.3% ADMINISTRATIVE FEES ANALYSIS SUBJECT EXPENSECOMPS This expense covers all expenses related to the management of YEAR TOTAL $ISF %EGI COMP $/SF %EGI the subject, including staff, office supplies, office equipment rental 1 $0.38 1.6% expenses, management fees, and professional services. The 2 $0.08 1.0% conclusion is based on the expense comparable information. 3 $0.00 0.0% 4 $0.00 0.0% CONCLUSION $584 $0.10 1.6% AVG $0.12 0.7% TAL EXPENSES LOW HIGH CONCLUSION EXPENSE COMPARABLES $/SF $1.65 $9.59 The concluded expenses are below the comparables on a $/SF, EXPENSE COMPARABLES %EGI 17.3% 40.8% but on the low end of the range on a %EGI basis, due to the Real TOTAL EXPENSES $/SF $1.60 Estate Taxes being omitted. Otherwise, the conclusions are d by TOTAL EXPENSES %EG 25.9% supported by the expense comparable data. TOTAL EXPENSES $9,326 © 2025 COLLIERS INTERNATIONAL V. ATION & ADVISORY SERVI 70
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INCOME APPROACH CONTINUED GRR250041 Reserves Although the owner is also responsible for capital expenses, deductions have only been made to arrive at an NOI before capital expenses. To ensure consistency in the analysis, the direct capitalization analysis will be based on market-extracted capitalization rates that have similarly been based on NOIs before capital expenses. DEVELOPMENT OF CAPITALIZATION RATE The going-in capitalization rate, also known as overall rate (OAR), can be determined using several sources and methods. In developing my opinion of OAR, the following techniques were used: >» Comparable Sales (Sales Comparison Approach) > Supplemental Comparable Sales (Competitive Market) > Investor Surveys > Band of Investment Technique Comparable Sales The primary sales utilized in this analysis are either fee simple sales or the income / expense information is unknown, so no OAR’s were extracted from these comparables. Therefore, | have included additional sales (Comparables AC1 thru AC21) to support capitalization rate trends for the subject property. CAPITALIZATION RATE COMPARABLES (OAR) AC1 Ferguson Supply Muskegon Heights Ml January 11,2024 1987 8,250 $47 $3.91 8.38% AC2 Industrial Warehouse Lansing Mi June 30, 2023 1967 24,000 $81 $6.51 8.01% AC3 Multi-Tenant Flex/Office Troy Mi May 22, 2023 1983 29,518 $75 $6.06 8.13% AC4 Single-Tenant Industrial Taylor Mi April 4, 2023 1967 21,575 $39 $3.55 9.00% AC5 United Safety Grand Rapids M November 4,2022 1990 22,292 $103 $8.77 8.50% ACB Single-Tenant Industrial Troy Mi October 12,2022 1970 13,975 $89 $7.68 8.58% AC7 Light Industrial Commerce Charter Tow nship M August29,2022 1985 8,448 $95 $8.14 8.59% AC8 Single-Tenant Industrial Taylor Mi April 14, 2022 1990 14,868 $64 $5.25 8.23% ACY Industrial Flex Building Ann Arbor Mi April 13, 2022 1994 19,600 $125 $11.54 9.26% AC10 Single-Tenant Industrial Gaylord Mi December 27,2024 1980 10,800 $81 $6.58 8.13% AC11 Light Industrial Property Kentw ood MI December 20,2024 1986 30,000 $117 $9.06 7.72% AC12 Industrial Manufacturing Grand Rapids MI December 20, 2024 1984 30,033 $69 $5.49 7.94% AC13 Single-Tenant Industrial Troy MI September 9,2024 1980 9,500 $89 $7.37 8.23% AC14 Single-Tenant Industrial (Flex) Ann Arbor Mi July 24, 2024 1991 37,266 $140 $10.85 7.77% AC15 Show room & Warehouse Kentw ood Mi June 13, 2024 1988 28,061 $72 $5.31 7.36% AC16 Single-Tenant Industrial Troy Ml May 28, 2024 1968 13,595 $121 $9.76 8.09% AC17 Single-Tenant Industrial Troy Mi May 9, 2024 1966 10,400 $142 $11.30 7.97% AC18 Single-Tenant Industrial Washington Mi May 2, 2024 1982 40,000 $71 $5.32 7.51% AC19 Single-Tenant Industrial Novi MI May 1, 2024 2000 12,041 $168 $13.22 7.86% AC20 Single-Tenant Industrial Troy Ml April 1, 2024 1969 18,052 $83 $5.85 7.01% AC21 Ferguson Supply Muskegon Heights Ml January 11,2024 1987 8,250 $47 $3.91 8.38% Low April 13, 2022 7.01% HIGH December 27, 2024 9.26% AVERAGE November 15, 2023 8.13% MEDIAN April 1, 2024 8.13% SUBJECT Battle Creek Mi 1987 5,840 $4.77 The sale comparables indicate a range between 7.01% and 9.26%, with an average rate of 8.13%. The subject is an atypical investment property in a tertiary market, so a rate above the average and closer to the upper end of the range is supported, say between 8.50% and 9.25%. ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 71
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INCOME APPROACH CONTINUED GRR250041 Investor Surveys The potential investor pool for the subject asset includes national, regional and local investors. While all of these groups place emphasis on local cap rates, regional and national investors would also strongly consider national cap rate trends from investor surveys due to the potential to invest in other regions that are offering competitive rates of return. The following graph provides a historical illustration of capitalization rate statistics as surveyed by investors that | considered to be relevant to the subject property. CAPITALIZATION RATE (OAR) 10.50% 9.50% 8.50% 7.50% 6.50% 5.50% 4.50% 3.50% ©PriceWaterhouse Coopers, ©Realty Rates.com, ©Real Capital Analy tics 50% 4Q 15 4Q 16 4Q17 4Q 18 4Q19 4Q 20 4Q 21 4Q 22 4Q 23 4Q24 = PWC National Warehouse ——— PWC East North Central (ENC) Region Warehouse = RR Industrial = RR Warehouse/Distribution = RCA Single Tenant ~~ RCA Tertiary Midwest The following table provides the most recent survey results from investors and My independent market participant interview. CAPITALIZATION RATE SURVEYS (OAR) SOURCE QUARTER RANGE AVG LASTQ LASTYR PriceWaterhouse Coopers National Warehouse 4Q24 4.00% to 7.50% 5.27% 5.55% 5.23% East North Central (ENC) Region Warehouse ~~ 4Q 24 475% to 5.75% 5.19% 5.06% 5.06% RealtyRates.com Industrial 4Q24 581% to 13.14% 9.47% 9.25% 9.56% Warehouse/Distribution 4Q24 581% to 11.50% 8.52% 8.29% 8.61% Real Capital Analytics Single Tenant Industrial 4Q 24 6.46% 6.37% 6.24% Tertiary Midw est Industrial 4Q24 8.48% 7.74% 6.94% AVERAGE 5.09% to 9.47% 7.23% 7.04% 6.94% The PWC indicators provide the lower end of the range, but these surveys are based on properties in larger markets with higher appreciation, so a rate above the averages provided by these surveys seems reasonable. The RealtyRates.com surveys shows average rates ranging from 8.52% and 9.47%. RCA shows average rates ranging from 6.46% to 8.48%. Given the physical and economic characteristics of the subject, a rate more consistent with the RealtyRates.com is supported, suggesting a range of 8.50% to 9.50%. Band of Investment Technique Because most properties are purchased with debt and equity capital, the overall capitalization rate must satisfy the market return requirements of both investment positions. Lenders must anticipate receiving a competitive interest rate commensurate with the perceived risk of the investment or they will not make funds available. ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 72
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INCOME APPROACH CONTINUED GRR250041 Lenders also require that the principal amount of the loan be repaid through amortization payments. Similarly, equity investors must anticipate receiving a competitive equity cash return commensurate with the perceived risk or they will invest their funds elsewhere. To analyze the capitalization rate from a financial position, the Band of Investment Technique is used. Available financing information indicates the following terms: BAND OF INVESTMENT ASSUMPTIONS Loan Amortization Period 30 Years Interest Rate 7.00% Loan-to-Value (LTV) Ratio 70% Mortgage Constant 7.98% Equity dividend rates vary depending upon motivations of buyers and financing terms. The previous terms and an appropriate equity dividend rate are used in the Band of Investments calculations, which are presented on the following chart. BAND OF INVESTMENT CALCULATION Mortgage Component 70% X 7.98% = 5.589% Equity Component 30% XxX 12.00% = 3.600% Indicated Capitalization Rate 9.189% INDICATED CAPITALIZATION RATE 9.19% Capitalization Rate Conclusion — December 31, 2023 Valuation Taking all factors into consideration, the following table summarizes the various capitalization rate indicators and provides the final capitalization rate conclusion. CAPITALIZATION RATE CONCLUSION (OAR) SOURCE QUARTER RANGE AVG LAST Q LASTYR Supplemental Comparable Sales 7.01% to 9.26% 8.13% - - Investor Surveys 4Q24 5.09% to 9.47% 7.23% 7.04% 6.94% Band of Investment Technique 9.19% - - AVERAGE 6.05% to 9.37% 8.18% 7.04% 6.94% CAPITALIZATION CONCLUSION (FEE SIMPLE) 9.00% The upper end of the range of the sales were given greatest consideration in this analysis and supported by the RealtyRates.com survey. As a result, an OAR of 9.00% is supported and concluded in this analysis, prior to loading the capitalization rate for the real estate tax burden. Tax Loaded Capitalization Rate Ordinarily, property taxes would be calculated and deducted from the operating expenses of the property. In this instance, however, the appropriate tax amount is not known since it is the purpose of this report to determine what the appropriate value on which taxes are to be based. In such cases, the valuation applies a tax loaded capitalization rate. This is achieved by adding the tax rate to the capitalization rate. The following calculation has been applied in order to account for the impact of property taxes. TAX LOADED CAPITALIATION RATE - TAX YEAR 2024 Concluded Capitalization Rate 9.00% Real Estate Tax Rate (Milage Rate / 1,000) 5.81278% Effective Real Estate Tax Rate (Tax Rate x Equalization Factor of 50%) 2.90639% Tax Loaded Capitalization Rate (OAR plus Tax Load) 11.9064% Tax Loaded Capitalization Rate 11.91% ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY. SERVICES 73
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INCOME APPROACH CONTINUED GRR250041 DIRECT CAPITALIZATION CONCLUSION — DECEMBER 31, 2023 This method analyzes the relationship of one year’s stabilized net operating income to total property value. The stabilized net operating income is capitalized at a rate that implicitly considers expected growth in cash flow and growth in property value over a buyer's investment horizon. The implied value may be adjusted to account for non-stabilized conditions or required capital expenditures to reflect an as is value. The pro-forma reflecting the subject's stabilized operations is presented in the following table. DIRECT CAPITALIZATION SUMMATION TABLE - AS OF DECEMBER 31, 2023 INCOME ITEMS %PGI YEG] $/SF(MO.) $/SF(YR.) TOTAL Base Contract Income $0.54 $6.50 $37,960 TOTAL RENTAL INCOME $0.54 $6.50 $37,960 VACANCY & CREDIT LOSS General Vacancy (4.0%) ($0.02) ($0.26) ($1,518) Credit & Collection Loss (1.0%) ($0.01) ($0.07) ($380) TOTAL VACANCY & CREDIT LOSS (5.0%) ($0.03) ($0.33) ($1,898) EXPENSE ITEMS Real Estate Taxes ] - - = = Property Insurance (3.8%) (4.0%) ($0.02) ($0.25) ($1,460) Common Area Maintenance (15.4%) (16.2%) ($0.08) ($1.00) ($5,840) Management Fees (3.8%) (4.0%) ($0.02) ($0.25) ($1,442) Administrative Fees (1.5%) (1.6%) (30.01) ($0.10) ($584) TOTAL EXPENSES (24.6%) (25.9%) ($0.13) ($1.60) ($9,326) Capitalization Rate 11.91% Capitalized Value $224,548 INDICATED VALUE $38/SF $220,000 CONTRIBUTORY VALUE OF THE SURPLUS LAND 158.1% 166.4% $0.86 $10.27 $60,000 RETROSPECTIVE VALUE AS-IS (12/31/2023) $48/SF $280,000 Rounded to nearest $10,000 ADJUSTMENTS TO VALUE To reflect conditions in effect at the subject property as the date of value, adjustments to the capitalized value were necessary for the contributory value of the surplus land which is not intrinsically considered in the income approach. Contributory Value of the Surplus Land As will be shown in the land valuation portion of this appraisal, the contributory value of the surplus land is concluded to be $60,000 as of 12/31/2023. Due to a lack of new development in the submarket, no change in land value is concluded for 12/31/2024. Thus the surplus land contributory value is added to the market value conclusion of the necessary site and building improvements. See the land valuation section for the analysis. The preceding value adjustments were applied consistently to both of the Income and Sales Comparison Approaches (12/31/2023 and 12/31/2024). ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES ~ IN
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INCOME APPROACH CONTINUED GRR250041 INCOME APPROACH - RETROSPECTIVE VALUE — AS-IS (DECEMBER 31, 2024 The income approach essentially mirrors the December 31, 2023 approach with the following adjustments: * Market rent is calculated for the 2" valuation date (December 31, 2024) * Market vacancy and collection loss remains at 4.0% and 1.0% respectfully; eo Expenses were inflated from the 12/31/2023 conclusions; and, e The OAR for 12/31/2024 is reviewed for any potential changes. ANALYSIS OF COMPARABLE 2024 WAREHOUSE RENT LEASES The 2024 Warehouse Rent lease analysis is used to derive an opinion of market rent and correlating leasing assumptions for the 2024 Warehouse Rent MLA category. The following table includes a summary of the comparables selected for this analysis, including relevant listings and actual leases at competing properties. Following the table is an adjustment grid, analysis and my conclusion. Datasheets containing more details of the comparables are presented later in this section. 2024 WAREHOUSE RENT LEASE SUMMATION TABLE SUBJECT LEASE] LEASE2 LEASES LEASE4 LEASES BEET aes be nen ds Teen eee | Name Former Recreational Flex Industrial Building Industrial Building Industrial Building Industrial Building Center Address 2000 East Columbia 400 Business centre 927 Industrial 904 Hotop Avenue 692 South 8th Street 1338 Branch Street Ave. Drive Parkw ay City Battle Creek Lansing Plainw ell Kalamazoo Kalamazoo Kalamazoo State Mm Mi Mi Mi Mi Mi Zip 49014 48917 49080 49048 49009 49001 PHYSICAL INFORMATION Property Type Industrial Industrial Industrial Industrial Industrial Industrial NRA 5,840 6,096 14,700 20,075 15,600 36,300 Occupancy 100.0% 100.0% 100.0% 42.0% 100.0% 20.0% Location Average Average/Good Average/Good Average Average/Good Average Quality Average Average Average Average Average/Good Average Condition Average Good Average/Good Fair/Average Average/Good Average Exposure Fair/Average Average Average Average Average Average Access Average Average Average Average Average Average Year Built 1987 1993 1991 1970 2001 1988 Clear Height 12-13' 12 Feet 13 Feet 35 Feet 17-26 Feet 18 Feet LEASE INFORMATION Tenant Name Flex Tenant Industrial Tenant Pro Turf Move Up NA Commencement Date 2/1/2024 12/10/2023 9/26/2023 9/24/2023 8/17/2023 Lease Type New New New New New Lease Status Signed Signed Signed Signed Signed Rate Type MG MG MG NNN MG Size (SF) 2,000 4,100 8,900 15,600 8,800 % Office 10.0% 22.0% 15.0% 12.8% 15.1% Term (Yrs) 5.0 2.0 - 3.0 - Rent ($/SF/Yr.) $11.00 $8.00 $4.95 $5.75 $6.50 ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 75
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INCOME APPROACH CONTINUED GRR250041 COMPARABLE 2024 WAREHOUSE RENT LEASE MAP | COMPARABLE KEY. COMP DISTANCE ADDRESS LEASEDATE SUBJECT - 2000 East Columbia Ave., Battle Creek, Ml = No. 1 40.7 Miles ~~ 400 Business centre Drive, Lansing, MI 2/1/2024 No.2 26.4 Miles ~~ 927 Industrial Parkw ay, Plainw ell, MI 12/10/2023 No. 3 21.5Miles 904 Hotop Avenue, Kalamazoo, MI 9/26/2023 No. 4 27.7 Miles 692 South 8th Street, Kalamazoo, Mi 9/24/2023 No.5 21.2 Miles 1338 Branch Street, Kalamazoo, MI 8/17/2023 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES
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INCOME APPROACH CONTINUED GRR250041 |____ 2024 WAREHOUSE RENT LEASE ADJUSTMENT TABLE | WAREHOUSE RENT LEASE ADJUS T TABLE Name Former Recreational Flex Industrial Building Industrial Building Industrial Building Industrial Building Center Address 2000 East Columbia 400 Business 927 Industrial 904 Hotop Avenue 692 South 8th Street 1338 Branch Street Ave. centre Drive Parkw ay City Battle Creek Lansing Plainw ell Kalamazoo Kalamazoo Kalamazoo NRA 5,840 6,096 14,700 20,075 15,600 36,300 Year Built 1987 1993 1991 1970 2001 1988 LEASE INFORMATION Tenant Name Flex Tenant Industrial Tenant Pro Turf Move Up N/A Commencement Date 2/1/2024 12/10/2023 9/26/2023 9/24/2023 8/17/2023 Lease Type New New New New New Lease Status Signed Signed Signed Signed Signed Rate Type MG MG MG NNN MG Size (SF) 2,000 4,100 8,900 15,600 8,800 Rent ($/SF/Yr.) $11.00 $8.00 $4.95 $5.75 $6.50 TRANSACTIONAL ADJUSTMENTS Lease Type $0.00 $0.00 $0.00 $3.00 $0.00 Concessions $0.00 $0.00 $0.00 $0.00 $0.00 Market Conditions’ 2% 2% 3% 3% 3% Subtotal Eff Rent $11.20 $8.17 $5.08 $8.97 $6.68 PROPERTY. ADJUSTMENTS Location Average Average/Good Average/Good Average Average/Good Average Adjustment -10% -10% 0% -10% 0% Size (Property) 5,840 6,096 14,700 20,075 15,600 36,300 Adjustment 0% 0% 0% 0% 0% Quality Average Average Average Average Average/Good Average Adjustment 0% 0% 0% -10% 0% Condition Average Good Average/Good Fair/Average Average/Good Average Adjustment -20% -10% 10% -10% 0% Exposure Fair/Average Average Average Average Average Average Adjustment 0% 0% 0% 0% 0% Access Average Average Average Average Average Average Adjustment 0% 0% 0% 0% 0% Age 1987 1993 1991 1970 2001 1988 Adjustment 0% 0% 0% 0% 0% Clear Height 12-13" 12 Feet 13 Feet 35 Feet 17-26 Feet 18 Feet Adjustment 0% 0% -10% -5% -3% Subtotal Property Adj -30% -20% 0% -35% -3% Size (Tenant) 5,840 2,000 4,100 8,900 15,600 8,800 Adjustment -5% 0% 0% 5% 0% Subtotal Tenant Adj -5% 0% 0% 5% 0% STATISTICS UNADJUSTED ADJUSTED MARKET CONCESSIONS! Low $4.95 $5.08 Lease Type Modified Gross HIGH $11.00 $7.28 Free Rent MEDIAN $6.50 $6.51 TI's AVERAGE $7.24 $6.34 Conditions Adjustment - Compound annual ange in market conditions Value (for adjustment calculations): 12/31/24 ©2025 COLLIERS INTERNATION. ALUATION & ADVISORY SERVICES 77
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INCOME APPROACH CONTINUED GRR250041 2024 Warehouse Rent Lease Analysis The comparables indicate an adjusted lease rate range from $5.08 to $7.28/SF, with a median of $6.51/SF and an average of $6.34/SF. The range of total gross adjustment applied to the comparables was from 5% to 43%, with an average gross adjustment across all comparables of 26%. The level of total adjustment applied to the comparables is considered to be moderate. Overall, the availability of market data and extent of analysis was adequate to develop a reasonably credible lease rate conclusion. The adjustment process for each comparable is discussed in the following paragraphs. Discussion of Adjustments Comparable 1 ($7.28/SF adjusted) required a total upward transaction adjustment of $0.20. This comparable required a total downward adjustment of -35% for property characteristics. The total gross adjustment applied to this comparable was 37%. The substantial level of gross adjustments required for this comparable was justified due to the comparable's varying attributes. Considering these factors, this comparable is given primary consideration as a value indicator for the subject. Comparable 2 ($6.54/SF adjusted) required a total upward transaction adjustment of $0.17. This comparable required a total downward adjustment of -20% for property characteristics. The total gross adjustment applied to this comparable was 22%. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 3 ($5.08/SF adjusted) required a total upward transaction adjustment of $0.13. This comparable required adjustments for property characteristics, however these resulted in a net adjustment of 0%. The total gross adjustment applied to this comparable was 23%. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 4 ($6.28/SF adjusted) required a total upward transaction adjustment of $3.22. This comparable required a total downward adjustment of -30% for property characteristics. The total gross adjustment applied to this comparable was 43%. The substantial level of gross adjustments required for this comparable was justified due to the comparable's varying attributes. Considering these factors, this comparable is given primary consideration as a value indicator for the subject. Comparable 5 ($6.51/SF adjusted) required a total upward transaction adjustment of $0.18. This comparable required a total downward adjustment of -3% for property characteristics. The total gross adjustment applied to this comparable was 5%. The minimal amount of gross adjustments required for this comparable suggests it is similar to the subject, increasing its applicability for this analysis. Overall this comparable warrants primary consideration as a value indicator for the subject. © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 78
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INCOME APPROACH CONTINUED GRR250041 2024 WAREHOUSE RENT SPACE MARKET RENT CONCLUSION The comparables indicate an adjusted lease rate range from $5.08 to $7.28/SF, with a median of $6.51/SF and an average of $6.34/SF. Based on the results of the preceding analysis, Comparable 1 ($7.28/SF adjusted), Comparable 2 ($6.54/SF adjusted), Comparable 4 ($6.28/SF adjusted) and Comparable 5 ($6.51/SF adjusted) are given primary consideration for the lease rate conclusion. The following table summarizes the analysis of the comparable leases and the 2024 Warehouse Rent market rent conclusion. 2024 WAREHOUSE RENT LEASE CONCLUSION TABLE LEASE ADJUSTMENT NET GROSS OVERALL LEASE RATE TRANSACTIONAL" ADJUSTED PROPERTY? FINAL ADJ % ADJ % COMPARISON 1 $11.00 $0.20 $11.20 -35% $7.28 -34% 37% PRIMARY 2 $8.00 $0.17 $8.17 -20% $6.54 -18% 22% PRIMARY 3 $4.95 $0.13 $5.08 0% $5.08 3% 23% SECONDARY 4 $5.75 $3.22 $8.97 -30% $6.28 9% 43% PRIMARY 5 $6.50 $0.18 $6.68 -3% $6.51 0% 5% PRIMARY Low $5.08 AVERAGE $6.34 HIGH $7.28 MEDIAN $6.51 ACHIEVABLE MRKT RANGE CONCLUSION 2024 Warehouse Rent $5.08 - $7.28 $6.75 "Cumulative 2Additive (Includes Tenant Adjustments) Comparable Rent Data Sheets The following pages present the rent comparable data sheets that were used in the prior analysis. ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY. SERVICES 79
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INCOME APPROACH CONTINUED GRR250041 COMPARABLE 1 PHYSICAL INFORMATION Name Flex Address 400 Business centre Drive City, State, Zip Code Lansing, Mi, 48917 MSA Lansing-East Lansing, MI Net Rentable Area (NRA) 6,096 Y ear Built 1993 Y ear Renovated 2019 Occupancy 100.0% Site Size 20,037 SF Site Coverage 30% Construction Block/Siding Building Class [¢3 Grade Doors 6 Name Matthew Wisniew ski Cross Docked No Source Leasing Broker Date / Phone Number 11/29/2024 +1517 321 2800 This is a small multi-tenant flex/office w ith six tenant spaces. This is a lease on modified gross (rent plus utilities) terms. TENANT NAME RATE TYPE SIZE START DATE LEASERATE LEASERATE Flex Tenant MG 2,000 02/01/2024 60 $11.00 $7.28 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 80
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INCOME APPROACH CONTINUED COMPARABLE 2 PHYSICAL INFORMATION Name Industrial Building Address 927 Industrial Parkw ay City, State, Zip Code Plainw ell, MI, 49080 MSA Kalamazoo-Fortage, Mi Net Rentable Area (NRA) 14,700 Year Built 1991 Occupancy 100.0% Site Size 70,131 SF Site Coverage 21% Parking Spaces 10 Parking Ratio 0.70 Clear Height 13 Feet % Office 18.4% Grade Doors 5 Dock Doors 3 Cross Docked No TENANT NAME RATE TYPE Industrial Tenant MG ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY. SERVICES 81 GRR250041 eat INDUSTRIAL BUILDING Name Jodi Milks Source Leasing Broker Date / Phone Number 01/04/2024 Confidential REMARKS This comparable represents a multi-tenant industrial building located in the City of Painw ell. The building has municipal utilities, central air, and 3 phase, 480V pow er. Suite Cw as marketed for lease at $8.00 PSF, MG, for 3 months before a lease w as signed in December 2023. Suite C has 2 overhead doors. The tenant pays utilities, trash, janitorial, phone and data. SIZE 4,100 START Di TERM 12/10/2023 24 LEASERATE $8.00 ADJ LEASE RATE $6.54
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INCOME APPROACH CONTINUED GRR250041 Industrial Building Address 904 Hotop Avenue City, State, Zip Code Kalamazoo, MI, 49048 Net Rentable Area (NRA) 20,075 Y ear Built 1970 Occupancy 42.0% Site Size 101,930 SF Site Coverage 20% Construction Steel Clear Height 35 Feet % Office 14.1% : Grade Doors 2 yi 7% Cross octed Ne Name Jeff Chrystal Source Leasing Broker Date / Phone Number 01/16/2024 +1 269-207-5431 This subject property is an industrial building w ith 20,075 square feet of net rentable area. Built in 1970, there are 2 grade level doors and 0 dock doors, a 35 feet clearance, and sits on 2.34 acres. The space w as leased on September 26, 2023 at the rate of $4.35 MG per year to Pro Turf. The lease term w as not disclosed. TENANT NAME RATE TYPE SIZE START DATE LEASERATE LEASERATE Pro Turf MG 8,900 09/26/2023 $4.95 $5.08 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 82
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CONTINUED COMPARABLE 4 PHYSICAL INFORMATION Name Address City, State, Zip Code MSA Net Rentable Area (NRA) Year Built Occupancy Site Size Site Coverage Construction Parking Spaces Parking Ratio Building Class Clear Height % Office Grade Doors Dock Doors Cross Docked TENANT NAME Move Up INCOME APPROACH GRR250041 Industrial Building oT Rl 692 South 8th Street Kalamazoo, M, 49009 Kalamazoo-Portage, Ml 15,600 2001 100.0% 381,585 SF 4% Metal/Masonry 33 2.10 Ss 17-26 Feet 12.8% LITT) 1 L Co Em a = INDUSTRIAL BUILDING HE] Name David Keyte 2 Source Leasing Broker 1 Date / Phone Number 02/09/2024 +1269 373 8104 o ing located in Oshtemo This comparable represents an industrial bi Tow nship. This freestanding building sits on a parcel of land containing 2 other industrial buildings. The building is accessed via a shared drive, and is not visible from any main roadw ays. The space w as marketed for lease at $5.75 PSF, NNN, for a 3 year term, for one month before the tenant signed a lease at full asking price. RATE TYPE NNN SIZE 15,600 START DATE 09/24/2023 36 LEASERATE $5.75 ADJ LEASE RATE $6.28 ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY. SERVICES 83
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INCOME APPROACH CONTINUED GRR250041 COMPARABLE 5 PHYSICAL INFORMATION Name Industrial Building Address 1338 Branch Street City, State, Zip Code Kalamazoo, Mi, 49001 Net Rentable Area (NRA) 36,300 Y ear Built 1988 Occupancy 20.0% Site Size 103,237 SF Site Coverage 35% Construction Masonry Clear Height 18 Feet Grade Doors 8 a Dock Doors 0 ; Cross ost " CONFIRMATION Name Confidential Source CoStar Date / Phone Number 05/21/2025 Confidential REMARKS This subject property is an industrial building w ith 8,800 square feet of net rentable area. Built in 1988, there are 8 grade level doors and 0 dock doors, a 18 feet clearance, and sits on 2.37 acres. The space w as leased on August 17, 2023 at the rate of $6.50 MG per year. The lease term and tenant's name w as not disclosed. SIZE START DATE LEASERATE = ADJ LEASERATE NA MG 8,800 08/17/2023 $6.50 $6.51 VACANCY & CREDIT LOSS VACANCY & CREDIT LOSS General Vacancy Rate 4.0% Credit Loss Conclusion 1.0% Total 5.0% CONCLUSION OF OPERATING EXPENSES Operating expenses are the similar to the previous conclusions with noted adjustments below: o Real estate taxes will be calculated using a loaded capitalization rate as previously; o Property insurance, common area maintenance have been escalated by 3.0%.over the 12/31/2023 valuation; and, o Management remains 4.0% of EGI and is self-adjusting. Capitalization Rate Conclusion Capitalization rates saw some upward pressure as a result in an uptick in the 10-year treasury yield in comparison to the previous year. However, much has been offset by the expectation that interest rates would come down. As a result, | have concluded to the same base OAR (prior to loading by the tax rate). Since the 2025 tax rate is unknown, we have applied the 2024 tax rate. As a result, the same loaded OAR as in the 12/31/2023 valuation of 11.91% is utilized in the 12/31/2024 valuation. ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 84
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INCOME APPROACH ONTINUED GRR250041 DIRECT CAPITALIZATION CONCLUSION This method analyzes the relationship of one year’s stabilized net operating income to total property value. The stabilized net operating income is capitalized at a rate that implicitly considers expected growth in cash flow and growth in property value over a buyer's investment horizon. The implied value may be adjusted to account for non-stabilized conditions or required capital expenditures to reflect an as is value. The pro-forma reflecting the subject's stabilized operations is presented in the following table. DIRECT CAPITALIZATION SUMMATION TABLE - AS OF DECEMBER 31, 2024 MLA MARKET CONCLUDED SFINMLA $/SF TOTAL RENT $/YR Warehouse $6.75 Market 5,840 $6.75 $39,420 INCOME ITEMS %PGl %EGI $/SF TOTAL Base Contract Income $6.75 $39,420 TOTAL RENTAL INCOME $6.75 $39,420 VACANCY & CREDIT LOSS General Vacancy (4.0%) (80.27) ($1,577) Credit & Collection Loss (1.0%) ($0.07) ($394) TOTAL VACANCY & CREDIT LOSS (5.0%) ($0.34) ($1,971) EXPENSE ITEMS Real Estate Taxes - = - Property Insurance (3.8%) (4.0%) (80.26) (81,504) Common Area Maintenance (15.3%) (16.1%) ($1.03) ($6,015) Management Fees (3.8%) (4.0%) ($0.26) ($1,498) Administrative Fees (1.5%) (1.6%) ($0.10) (8602) TOTAL EXPENSES (24.4%) (25.7%) ($1.65) ($9,618) Capitalization Rate 11.91% Capitalized Value $233,744 INDICATED VALUE $39/SF $230,000 CONTRIBUTORY VALUE OF THE SURPLUS LAND $60,000 RETROSPECTIVE VALUE AS-IS (12/31/2024) $50/SF $290,000 Rounded to nearest $10,000 INCOME APPROACH CONCLUSION The following table summarizes the opinions of market value that were developed by the direct capitalization method of the income approach. RETROSPECTIVE RETROSPECTIVE VALUATION INDICES VALUE AS-IS VALUE AS-IS INTEREST APPRAISED FEE SIMPLE FEE SIMPLE DATE OF VALUE DECEMBER 31, 2023 DECEMBER 31, 2024 Direct Capitalization $280,000 $290,000 Direct Capitalization $/SF $48/SF $50/SF NOI Proforma $26,736 $27,831 NOI $/SF $4.58/SF $4.77/SF Capitalization Rate 11.91% 11.91% INCOME CONCLUSION $280,000 $290,000 Income Conclusion $/SF $48/SF $50/SF ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 85
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SALES APPROACH GRR250041 INTRODUCTION The Sales Comparison Approach is based on the principle of substitution, which asserts that a buyer would not pay more for a property than the value of similar properties in the market. This approach analyzes comparable sales by applying transactional and property adjustments to bracket the subject property within an appropriate unit value comparison. UNIT OF COMPARISON The most relevant unit of comparison is the price per square foot of NRA. This indicator best reflects the analysis used by buyers and sellers in this market for improved properties with similar design and utility. SALES APPROACH VALUATION - 12/31/2023 COMPARABLE SELECTION | completed a thorough search for similar improved sales in terms of property type, location, physical characteristics, and date of sale. In selecting comparables, emphasis was placed on confirming recent improved sales of properties that match the highest and best use, and buyer/seller profile of the subject property. Overall, the sales selected represent the best comparables available for this analysis. ADJUSTMENT PROCESS Quantitative adjustments are made to the comparable sales. The following adjustments or general market trends were considered for the basis of valuation. Transactional Adjustments Dollar adjustments to the comparable sales were considered and made when warranted for transactional adjustments in the sequence shown below: Property Rights Transferred ~~ The valuation of the subject was completed on a fee simple basis. If warranted, leased fee, leasehold and/or partial interest sales were adjusted accordingly. Financing Terms The subject property was valued on a cash equivalent basis. Adjustments were made to the comparables involving financing terms atypical of the marketplace. Conditions of Sale This adjustment accounts for extraordinary motivation on the part of the buyer or seller often associated with distressed sales. Expenditures After Purchase Adjustments were applied if physical conditions warranted expenditures on the part of the buyer to bring the comparable up to functional standards. Most often this adjustment accounts for costs associated with deferred maintenance. Market Conditions Market conditions adjustments were based on a review of historical sale data, market participant interviews and review of current versus historical pricing. Based on my research, the following table summarizes the market conditions adjustment applied in this analysis. MARKET CONDITIONS ADJUSTMENT Per Year As Of December 2023 (Retrospective) 3% The analysis applies an upward market conditions adjustment of 3% annually reflecting the conditions between the oldest comparable sale date up through the effective valuation date. ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 86
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SALES APPROACH CONTINUED GRR250041 Property Adjustments Quantitative percentage adjustments are also made for location and physical characteristics such as size, age, site and parking ratios, access, exposure, quality and condition, as well as other applicable elements of comparison. Where possible the adjustments applied are based on paired data or other statistical analysis. It should be stressed that the adjustments are subjective in nature and are meant to illustrate my logic in deriving a value opinion for the subject property. PRESENTATION The following Sales Summation Table, Location Map and datasheets summarize the improved sales data. Following these items, the comparable sales are adjusted for applicable elements of comparison and the opinion of value by the Sales Comparison Approach is concluded. IMPROVED SALES SUMMATION TABLE [COMPARABLE] [suBsECT 7] [CoVPARABLET | 1 [covpARABLEZ | 2 [ComPaRABLES | 3 [CoMPARABLEZ™ | 4 [COMPARABLES | 5 omens CBRE Recreational REE Industrial premest Cannabis [eas id] Industrial EEE Industrial eins Industrial Center Property Dispensary Property Property Property Address 2000 East Columbia 12248 East Michigan 1193 East Michigan ~~ 2600 West Dickman 2257 West Columbia 2205 West Dickman Ave. Avenue Avenue Road Avenue Road City Battle Creek Battle Creek Battle Creek Springfield Battle Creek Springfield State M Mi Mi Mi M Mi Zip 49014 49014 49014 49037 49015 49037 County Calhoun Calhoun Calhoun Calhoun Calhoun Calhoun PHYSICAL INFORMATION Property Type Industrial Industrial Industrial Industrial Industrial Industrial NRA (SF) 5,840 7,348 5,488 10,875 7,302 5,694 Land Area (AC) 3.3 26 0.4 0.7 4.0 0.4 L:B Ratio 22.4 15.5 3.2 27 23.9 27 Location Average Average Average Average Average Average Quality Average Average Average/Good Average Average Average Condition Average Fair/Average Good Fair Good Average/Good Exposure Fair/Average Average Average Average Average Average Access Average Average Average Average erage Average Year Built 1987 1950 1950 1960 1960 3/31/2021 10/18/2023 6/27/2023 8/5/2022 7/6/2022 stots Recorded Recorded Recorded Recorded Recorded Marketing Period 14 Mos. 4 Mos. 3 Mos. 1 Mos. 18 Mos. Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $250,000 $299,900 $300,000 $360,000 $248,600 Analysis Price $250,000 $299,900 $300,000 $360,000 $248,600 $/SF NRA $34 $55 $28 $49 $44 ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY. 87
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SALES APPROACH CONTINUED GRR250041 SALES LOCATION MAP Level wo ~—Rark-OakiRark fe, AEE ADEE WER Map data ©202 COMPARABLE KEY ADDRESS occ. SALEDATE OAR SUBJECT 2000 East Colu No. 1 12248 East Michigan Avenue, Battle Creek, MI 3/31/2021 No. 2 1.3 Miles 1193 East Michigan Avenue, Battle Creek, Mi 10/18/2023 No.3 4.1 Miles 2600 West Dickman Road, Springfield, MI 6/27/2023 No. 4 4.8 Miles ~~ 2257 West Columbia Avenue, Battle Creek, MI 8/5/2022 No.5 3.9 Miles 2205 West Dickman Road, Springfield, MI 7/6/2022 ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES
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SALES APPROACH CONTINUED City, State, Zip Code Light Industrial Property 12248 East Michigan Avenue Battle Creek, MI, 49014 GRR250041 1 Go Map data ©2025 Imagery ©2025 Maxar Technologies ANALYSIS INFORMATION Price per SF $34 Adjusted Price per SF $41 Capitalization Rate CONFIRMATION Name Ryan Leonard Company EXP Realty Source Seller's Broker Date / Phone Number 05/20/2025 +1269 420 7608 County Calhoun MSA Battle Creek, Mi APN 53-192-012-00 Buyer Al Vanzandt Seller Ray Leonard Trust Transaction Date 03/31/2021 Transaction Status Recorded Transaction Price $250,000 Analysis Price $250,000 Recording Number 4526/0621 Rights Transferred Fee Simple Financing Seller Conditions of Sale Arms-Length Marketing Time 14 Months Leasable Area (NRA) 7,348 Number of Buildings 2 Year Built 1950 % of Office Build-out 3% Clear Height 12-14 Feet Class Ss Grade Doors 5 Dock Doors 0 Quality Average Condition Fair/Average Site Size 2.6 Acres (114,127 SF) Zoning 1 Access Average Exposure Average Site Coverage 6% IERS INTERNATION. REMARKS 2-building industrial property constructed circa 1950. The broker reported there was a small office / restroom area, estimated to be about 200 SF. About half of the space lacked heat. The property was listed in excess of 14-months and sold at full list price, 89
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SALES APPROACH CONTINUED GRR250041 SOMEFRIDLE 2 Former Cannabis Dispensary Address 1193 East Michigan Avenue City, State, Zip Code Battle Creek, MI, 49014 County Calhoun MSA Battle Creek, MI SALEINFORMATION Buyer Seller Transaction Date Transaction Status Transaction Price Analysis Price Recording Number Rights Transferred Financing Conditions of Sale Marketing Time PHYSICAL INFORMATION Leasable Area (NRA) Number of Buildings Year Built Parking Spaces / Ratio % of Office Build-out Clear Height Grade Doors Dock Doors Quality Condition Building Structure Site Size Zoning Access Exposure Site Coverage © 2025 COLLIERS INTERNATIONAL VAL 10-280-025-00 Waterbury 1193, LLC 1193 Michigan, LLC 10/18/2023 Recorded $299,900 $299,900 4786/0115 Fee Simple Conventional Arms-Length 4 Months 5,488 1 1850 25 (4.6/1,000 SF NRA) 61% 10 Feet 2 0 Average/Good Good Wood 0.4 Acres (17,685 SF) Local Commercial Average Average 31% ION & ADVISORY SERVICES 90 FORMER CANNABIS DISPENSARY 2 SIS INFORMATION Price per SF Adjusted Price per SF $40 Capitalization Rate CONFIRMATION Dustin Damon Jo, RE/MAX Perrett Source Seller's Broker Date / Phone Number 05/20/2025 +1269 317 0988 Industrial property w hich w as renovated for cannabis dispensary use in 2020, but ultimately closed and repurposed for use by a contractor. The property w as listed for $450,000 in 2023, later reduced and sold for $299,900 after about a 4- month marketing period.
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SALES APPROACH CONTINUED OCATION INFORMATION Address City, State, Zip Code County MSA APN SALEINFORMATION Next Generation Law n Care, LLC A&G Construction, LLC Transaction Date 06/27/2023 Transaction Status Recorded Transaction Price $300,000 Analysis Price $300,000 Recording Number 4758/0063 Rights Transferred Fee Simple Financing Cash at Settlement Conditions of Sale Arms-Length Marketing Time 3 Months Leasable Area (NRA) 10,875 | Number of Buildings 1 Year Built 1960 Parking Spaces / Ratio % of Office Build-out Clear Height Class Grade Doors Dock Doors Quality Condition Building Structure Site Size Zoning Access Exposure Site Coverage Light Industrial Property 2600 West Dickman Road Springfield, Ml, 49037 Calhoun Battle Creek, MI 54-100-024-00 8(0.7/1,000 SF NRA) 26% 10-12 Feet Ss 3 1 Average Fair Metal 0.7 Acres (29,707 SF) k1 Average Average 37% GRR250041 y $i i \ 2 Budget Drain ® SM. Cleaning 23/Ho i? / ja 2025 Maxar Technologies Price per SF $28 Adjusted Price per SF $36 Capitalization Rate CONFIRMATION Name Rahjah Stahlhood Company Coldw ell Banker Morehart Realty Source Seller's Broker Date / Phone Number 05/20/2025 +1269 986 3780 REMARKS Light industrial property constructed in stages from 1960 to 1995 with renovations in 1991 and 2006. The property was listed for $339,000, was on the market for about 3-months and sold for $300,000. ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY. SERVICES 91
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CONTINUED COMPARABLE 4 Address City, State, Zip Code County MSA SALE INFORMATION g Buyer Seller Transaction Date Transaction Status Transaction Price Analysis Price Recording Number Rights Transferred Financing Conditions of Sale Marketing Time PHYSICAL INFORMATION Leasable Area (NRA) Number of Buildings Year Built % of Office Build-out Clear Height Class Grade Doors Dock Doors Quality Condition Building Structure Site Size Zoning Access Exposure Site Coverage © 2025 COLLIERS INTERNATIONAL VAL! SALES APPROACH GRR250041 Light Industrial Property 2257 West Columbia Avenue Battle Creek, MI, 49015 Calhoun Battle Creek, MI 52-0066-00-540-0 Jeremy Harris Ted E Goff Trust 08/5/2022 Recorded $360,000 $360,000 4686/0502 Fee Simple All Cash Arms-Length 1 Months 7.302 1 185 39% 10-14 Feet s 3 Price per SF 0 Adjusted Price per SF Average Capitalization Rate od Frame/Siding Al Morehart 4.0 Acres (174,706 SF) Coldw ell Banker Morehart Realty B-1 Source Seller's Broker Average Date / Phone Number 05/20/2025 +1269 441 8184 Average REMARKS 4% Former residential property converted to commercial use with additions of garages and metal buildings. The property was listed for $385k and sold for $360k per public records after a 1-month marketing period. “ ry ION & ADVISORY SERVI 92
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CONTINUED me Address City, State, Zip Code County MSA Al Buyer Seller Transaction Date 07/6/2022 Transaction Status Recorded Transaction Price $248,600 Analysis Price $248,600 Rights Transferred Fee Simple Financing Conventional Conditions of Sale Arms-Length Marketing Time 18 Months fas Leasable Area (NRA) 5,694 Number of Buildings 1 Year Built 1960 Parking Spaces / Ratio % of Office Build-out Clear Height Grade Doors Dock Doors Quality Condition Building Structure Site Size Zoning Access Exposure Site Coverage © 2025 COLLIERS INTERNATION. SALES APPROACH COMPARABLE 5 i L / Nai GRR250041 Light Indus Property 2205 West Dickman Road Springfield, MI, 49037 Calhoun Battle Creek, MI 54-060-008-01 PN SALE INFORMATION Revolve States, LLC Mangw n Properties, Inc. 10 (1.8/1,000 SF NRA) 32% 12 Feet 2 1 Average Average/Good Metal 0.4 Acres (15,507 SF) FH Average Average 37% [] Go, ap ANALYSIS INFORMATION Price per SF Adjusted Price per SF $42 Capitalization Rate CONFIRMATION Name Confidential Company Scott Harrington - Harrington Real Estate Source Seller's Broker Date / Phone Number 05/20/2025 Confidential Light industrial property constructed circa 1960 and later nicely renovated. The property was listed for $349,900, noting that an adjacent property was for sale too, but could be purchased singularly. The list price was later reduced to $299,900 and sold for $248,600 after an 18-month marketing period. ION & ADVISORY SERVICES 93
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SALES APPROACH CONTINUED MPROVED ES ADJ MENT TABLE GRR250041 COMPARABLE 1 COMPARABLE2 CONPARABLE3 CONPARABLE4 COMPARABLES Name Former Recreational Light Industrial Property Former Cannabis Light Industrial Property Light Industrial Property Light Industrial Property Center Dispensary Address 2000 East Columbia 12248 East Michigan ~~ 1193 East Michigan 2600 West Dickman 2257 West Columbia ~~ 2205 West Dickman Ave. Avenue Avenue Road Avenue Road City, State Battle Creek, MI Battle Creek, MI Battle Creek, MI Springfield, MI Battle Creek, MI Springfield, MI Zip 49014 49014 49014 49037 49015 49037 NRA (SF) 5,840 7,348 5,488 10,875 7,302 5,694 Land Area (AC) 33 286 0.4 0.7 4.0 0.4 Year Built 1987 1950 1950 1960 195 1960 SALE INFORMATION Date 3/31/2021 10/18/2023 6/27/2023 8/5/2022 71/6/2022 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $250,000 $299,900 $300,000 $360,000 $248,600 $/SF NRA $34 $55 $28 $49 $44 Property Rights 0% 0% 0% 0% 0% Financing 0% 0% 0% 0% 0% Conditions of Sale 0% 0% 0% 0% 0% Expenditures After the Sale 0% 0% 0% 0% 0% Market Conditions’ 8% 1% 2% 4% 4% Subtotal Transactional Adj Price $37 $55 $28 $51 $46 Location Average Average Average Average Average Average Adjustment 0% 0% 0% 0% 0% Size 5,840 7,348 5,488 10,875 7,302 5,694 Adjustment 0% 0% 5% 0% 0% Quality Average Average Average/Good Average Average Average Adjustment 0% -10% 0% 0% 0% Condition Average Fair/Average Good Fair Good Average/Good Adjustment 10% -20% 20% -20% -10% Exposure Fair/Average Average Average Average Average Average Adjustment 0% 0% 0% 0% 0% Access Average Average Average Average Average Average Adjustment 0% 0% 0% 0% 0% Age 1987 1950 1950 1960 195 1960 Adjustment 0% 0% 0% 0% 0% Clear Height 12-13 12-14 Feet 10 Feet 10-12 Feet 10-14 Feet 12 Feet Adjustment 0% 0% 0% 0% 0% L:B Ratio 22.4 15.5 3.2 27 239 2 Adjustment 0% 3% 3% 0% 3% Subtotal Property Adjustment 10% -28% 28% -20% -8% STATISTICS UNADJUSTED ADJUSTED Low $28 $36 HIGH $55 $42 MEDIAN $44 $41 AVERAGE $42 $40 Dz © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 94
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SALES APPROACH CONTINUED GRR250041 SALES COMPARABLE ANALYSIS Introduction The comparable sales indicate an adjusted value range from $36 to $42/SF, with a median of $41/SF and an average of $40/SF. The range of total gross adjustment applied to the comparables was from 17% to 33%, with an average gross adjustment across all comparables of 24%. The level of total adjustment applied to the comparables is considered to be moderate. Overall, the availability of market data and extent of analysis was adequate to develop the subject property's total value. The adjustment process for each comparable sale is discussed in the following paragraphs. Discussion of Adjustments Comparable 1 ($41/SF adjusted) required a total upward transaction adjustment of 8%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of 10% for property characteristics. This comparable was adjusted upward for its inferior condition. The total gross adjustment applied to this comparable was 18%. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 2 ($40/SF adjusted) required a total upward transaction adjustment of 1%. This comparable is adjusted upward for improving market conditions. This comparable required a total downward adjustment of -28% for property characteristics. This comparable was adjusted downward for its superior quality and condition, and upward for its inferior land-to-building ratio. The total gross adjustment applied to this comparable was 33%. The substantial level of gross adjustments required for this comparable was justified due to the comparable's varying attributes. Considering these factors, this comparable is given secondary consideration as a value indicator for the subject. Comparable 3 ($36/SF adjusted) required a total upward transaction adjustment of 2%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of 28% for property characteristics. This comparable was adjusted upward for its larger size and inferior condition and land-to-building ratio. The total gross adjustment applied to this comparable was 29%. The substantial level of gross adjustments required for this comparable was justified due to the comparable's varying attributes. Considering these factors, this comparable is given secondary consideration as a value indicator for the subject. Comparable 4 ($41/SF adjusted) required a total upward transaction adjustment of 4%. This comparable is adjusted upward for improving market conditions. This comparable required a total downward adjustment of -20% for property characteristics. This comparable was adjusted downward for its superior condition. The total gross adjustment applied to this comparable was 24%. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 5 ($42/SF adjusted) required a total upward transaction adjustment of 4%. This comparable is adjusted upward for improving market conditions. This comparable required a total downward adjustment of -8% for property characteristics. This comparable was adjusted downward for its superior condition, and upward for its inferior land-to-building ratio. The total gross adjustment applied to this comparable was 17%. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 95
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SALES APPROACH CONTINUED GRR250041 SALES COMPARISON APPROACH CONCLUSION The comparable sales indicate an adjusted value range from $36 to $42/SF, with a median of $41/SF and an average of $40/SF. Based on the results of the preceding analysis, Comparable 1 ($41/SF adjusted), Comparable 4 ($41/SF adjusted) and Comparable 5 ($42/SF adjusted) are given primary consideration for the subject's opinion of value. The following table summarizes the analysis of the comparables, reports the reconciled price per NRA value conclusion, and presents the concluded value of the subject property. SALES COMPARISON APPROACH CONCLUSION (NRA) ANALYSIS ADJUSTMENT NET GROSS OVERALL COMP PRICE TRANSACTIONAL ADJUSTED PROPERTY? FINAL ADJ % ADJ % COMPARISON 1 $34 8% $37 10% $41 19% 18% PRIMARY 2 $55 1% $55 -28% $40 -27% 33% SECONDARY 3 $28 2% $28 28% $36 29% 29% SECONDARY 4 $49 4% $51 -20% $41 17% 24% PRIMARY 5 $44 4% $46 -8% $42 3% 17% PRIMARY Low $36 AVERAGE $40 HIGH $42 MEDIAN $41 SUBJECT SF $/SF CONCLUSION VALUE INDICATED VALUE 5,840 Xx $41/SF = $240,000 CONTRIBUTORY VALUE OF THE SURPLUS LAND $60,000 RETROSPECTIVE VALUE AS-IS (12/31/2023) $51/SF $300,000 Cumulative 2Additive Rounded to nearest $10,000 SALES COMPARISON APPROACH 12/31/2024 Due to the change in market conditions, a second sales comparison approach is applied for the 12/31/2024 valuation. ADJUSTMENT PROCESS Quantitative adjustments are made to the comparable sales. The following adjustments or general market trends were considered for the basis of valuation. Transactional Adjustments Dollar adjustments to the comparable sales were considered and made when warranted for transitional adjustments in the sequence shown below: Property Rights Transferred ~~ The valuation of the subject site was completed on a fee simple basis. If warranted, leased fee, leasehold and/or partial interest sales were adjusted accordingly. Financing Terms The subject property was valued on a cash equivalent basis. Adjustments were made to the comparables involving financing terms atypical of the marketplace. Conditions of Sale This adjustment accounts for extraordinary motivation on the part of the buyer or seller often associated with distressed sales. Expenditures After Purchase Adjustments were applied if physical conditions warranted expenditures on the part of the buyer to bring the comparable up to functional standards. Most often this adjustment accounts for costs associated with deferred maintenance. © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 96
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SALES APPROACH CONTINUED GRR250041 Market Conditions Market conditions adjustments were based on a review of historical sale data, market participant interviews and review of current versus historical pricing. on my research, the following table summarizes the market conditions adjustment applied in this analysis. MARKET CONDITIONS ADJUSTMENT Per Year As Of December 2024 (Retrospective) 3% The analysis applies an upward market conditions adjustment of 3% annually reflecting the conditions between the oldest comparable sale date up through the effective valuation date. Property Adjustments Quantitative percentage adjustments are also made for location and physical characteristics such as size, age, site and parking ratios, access, exposure, quality and condition, as well as other applicable elements of comparison. Where possible the adjustments applied are based on paired data or other statistical analysis. It should be stressed that the adjustments are subjective in nature and are meant to illustrate my logic in deriving a value opinion for the subject property. PRESENTATION The following Sales Summation Table, Location Map and datasheets summarize the improved sales data. Following these items, the comparable sales are adjusted for applicable elements of comparison and the opinion of value by the Sales Comparison Approach is concluded. IMPROVED SALES SUMMATIO LE Name Former Recreational Light Industrial Property Former Cannabis Light Industrial Property Light Industrial Property Light Industrial Property Center Dispensary Address 2000 East Columbia 221 North 30th Street 1193 East Michigan 2600 West Dickman 2257 West Columbia 2205 West Dickman Ave. Avenue Road Avenue Road City Battle Creek Springfield Battle Creek Springfield Battle Creek Springfield State Mi Mi Mi M Mi Mi Zip 49014 49037 49014 49037 49015 49037 County Calhoun Calhoun Calhoun Calhoun Calhoun Calhoun Property Type Industrial Industrial Industrial Industrial Industrial Industrial NRA (SF) 5,840 5,120 5,488 10,875 7,302 5,694 Land Area (AC) 33 0.9 0.4 0.7 4.0 0.4 L:B Ratio 22.4 74 32 2 23.9 27 Location Average Average Average Average Average Average Quality Average Average Average/Good Average Average Average Condition Average Average/Good Good Fair Good Average/Good Exposure Fair/Average Average Average Average Average Average Access Average Average Average Average Average Average Year Built 1987 1990 1950 1960 195 1960 Clear Height 12-13" 12 Feet 10 Feet 10-12 Feet 10-14 Feet 12 Feet LOE C1) at is Date 2/29/2024 10/18/2023 6/27/2023 8/5/2022 7/8/2022 Status Recorded Recorded Recorded Recorded Recorded Marketing Period - 4 Mos. 3 Mos. 1 Mos. 18 Mos. Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $260,000 $299,900 $300,000 $360,000 $248,600 Analysis Price $260,000 $299,900 $300,000 $360,000 $248,600 $/SF NRA $51 $55 $28 $49 $44 ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY. SERVICES Oi
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SALES APPROACH ; CONTINUED GRR250041 SALES LOCATION MAP Historic Gel Ng § | COMPARABLE KEY COMP DISTANCE ADDRESS occ. SALEDATE OAR SUBJECT - 2000 East Col Former Recreational Center - . - No. 1 4.3 Miles 221 North 30th Street, Springfield, MI 2/29/2024 No. 2 1.3 Miles 1193 East Michigan Avenue, Battle Creek, MI 10/18/2023 No. 3 4.1 Miles ~~ 2600 West Dickman Road, Springfield, MI 6/27/2023 No.4 4.8 Miles 2257 West Columbia Avenue, Battle Creek, Ml 8/5/2022 No. 5 3.9 Miles 2205 West Dickman Road, Springfield, MI 7/6/2022 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES
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CONTINUED Name Address City, State, Zip Code County MSA APN SALE INFORMATION Buyer Seller Transaction Date Transaction Status Transaction Price Analysis Price Recording Number Rights Transferred Financing Conditions of Sale PHYSICAL INFORMATION Leasable Area (NRA) Number of Buildings Year Built Parking Spaces / Ratio % of Office Build-out Clear Height Class Grade Doors Dock Doors Quality Condition Building Structure Site Size Zoning Access Exposure Site Coverage SALES APPROACH COMPARABLE 1 GRR250041 Light Industrial Property 221 North 30th Street Springfield, MI, 49037 Calhoun Battle Creek, MI 54-080-049-28 Lantinga real Estate Holdings, LLC Challo Properties, LLC 02/29/2024 Recorded $260,000 $260,000 LIGHT INDUSTRIAL PROPERTY. 4807/0803 Ey - / = Fee Simple Cash at Settlement Arms-Length 5,120 1 1990 2(0.4/1,000 SF NRA) 4% 1 12 Feet Go Map data ©; Ss ANALYSIS INFORMATION 1 Price per SF 0 Adjusted Price per SF $48 Average Capitalization Rate Average/Good CONFIRMATION Metal Name Confidential 0.9 Acres (37,766 SF) Company Assessor / Public Records k1 Source Assessor Average Date / Phone Number 05/20/2025 Confidential Average REMARKS 14% Light industrial property w ith minimal office constructed circa 1990 The property sold in an off-market transaction for $260,000 per public records. ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY. SERVICES 99
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SALES APPROACH CONTINUED GRR250041 COMPARABLE 2 Former Cannabis Dispensary Address 1193 East Michigan Avenue City, State, Zip Code Battle Creek, MI, 49014 County Calhoun MSA Battle Creek, MI 10-290-025-00 SALEINFORMATION Buyer Waterbury 1193, LLC Seller 1193 Michigan, LLC Transaction Date 10/18/2023 Transaction Status Recorded Transaction Price $299,900 Analysis Price $299,900 Recording Number 4786/0115 J Rights Transferred Fee Simple i se Financing Conventional | Conditions of Sale Arms-Length Marketing Time 4 Months PHYSICAL INFORMATION h Leasable Area (NRA) 5,488 Number of Buildings 1 Year Built 1950 Parking Spaces / Ratio % of Office Build-out 25 (4.6/1,000 SF NRA) 61% Clear Height 10 Feet Grade Doors 2 Dock Doors 0 Quality Average/Good Condition Good Building Structure Wood Site Size 0.4 Acres (17,685 SF) Zoning Local Commercial Access Average Exposure Average Site Coverage 31% © 2025 COLL uojsueAy TEE INFORMATION Price per SF Adjusted Price per SF Capitalization Rate CONFIRMATION a Dustin Damon a RE/MAX Perrett Source Seller's Broker Date / Phone Number 05/20/2025 +1269 317 0988 Industrial property w hich was renovated for cannabis dispensary use in 2020, but ultimately closed and repurposed for use by a contractor. The property was listed for $450,000 in 2023, later reduced and sold for $299,900 after about a 4- month marketing period. 100
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CONTINUED LOCATIONINFORMATION Name Address City, State, Zip Code County MSA APN SALEINFORMATION Buyer Seller Transaction Date Transaction Status Transaction Price Analysis Price Recording Number Rights Transferred Financing Conditions of Sale Marketing Time PHYSICAL INFORMATION Leasable Area (NRA) Number of Buildings Year Built Parking Spaces / Ratio % of Office Build-out Clear Height Class Grade Doors Dock Doors Quality Condition Building Structure Site Size Zoning Access Exposure Site Coverage © 2025 COLLIERS INTERNATIONAL SALES APPROACH COMPARABLE 3 Light Industrial Property 2600 West Dickman Road Springfield, MI, 49037 Calhoun Battle Creek, MI 54-100-024-00 Next Generation Law n Care, LLC A&G Construction, LLC 06/27/2023 Recorded $300,000 $300,000 4758/0063 Fee Simple Cash at Settlement Arms-Length 3 Months 10,875 1 1960 8(0.7/1,000 SF NRA) 26% 10-12 Feet Ss 3 1 Average Fair Metal 0.7 Acres (29,707 SF) FH Average Average 37% GRR250041 ' id ole EE Soom Si Cleaning 23]Ho © 025 Imagery ©2025 Maxar Technologies ANALYSIS INFORMATION Price per SF $28 Adjusted Price per SF $37 Capitalization Rate CONFIRMATION Name Rahjah Stahlhood Company Coldw ell Banker Morehart Realty Source Seller's Broker Date / Phone Number 05/20/2025 +1269 986 3780 REMARKS Light industrial property constructed in stages from 1960 to 1995 with renovations in 1991 and 2006. The property was listed for $339,000, was on the market for about 3-months and sold for $300,000. LUATION & ADVISORY SERVICES 101
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SALES APPROACH CONTINUED COMPARABLE 4 Name | Address City, State, Zip Code County MSA Al Buyer Seller Transaction Date Transaction Status Transaction Price Analysis Price Recording Number Rights Transferred Financing Conditions of Sale Marketing Time Leasable Area (NRA) Number of Buildings Year Built % of Office Build-out Clear Height Class Grade Doors Dock Doors Quality Condition Building Structure Site Size Zoning Access Exposure Site Coverage © 2025 COLLIERS INTERNATIONAL VALUATION & Al PN SALE INFORMATION § GRR250041 Light Industrial Property 2257 West Columbia Avenue Battle Creek, MI, 49015 Calhoun Battle Creek, MI 52-0066-00-540-0 Jeremy Harris Ted E Goff Trust 08/5/2022 Recorded $360,000 $360,000 4686/0502 Fee Simple re All Cash Fake view IN Arms-Length o Veterinary.Clinic 1 Months 7.302 1 195 39% 10-14 Feet Ss Al 3 Price per SF $49 0 Adjusted Price per SF $42 Average Capitalization Rate Good CONFIRMATION Frame/Siding Name Al Morehart 4.0 Acres (174,706 SF) Company Coldw ell Banker Morehart Realty B-1 Source Seller's Broker Average Date / Phone Number 05/20/2025 +1269 441 8184 Average REMARKS 4% Former residential property converted to commercial use with additions of garages and metal buildings. The property was listed for $385k and sold for $360k per public records after a 1-month marketing period. SORY SERVICES 102
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SALES APPROACH CONTINUED COMPARABLE 5 f Name Address City, State, Zip Code County MSA APN SALEINFORMATION Buyer Seller Transaction Date Transaction Status Transaction Price Analysis Price Rights Transferred Financing Conditions of Sale Marketing Time PHYSICAL INFORMATION Leasable Area (NRA) Number of Buildings Year Built Parking Spaces / Ratio % of Office Buid-out Clear Height Grade Doors Dock Doors Quality Condition Building Structure Site Size Zoning Access Exposure Site Coverage © 2025 COLLIERS INTERNATIONAL VAL Light Industrial Property 2205 West Dickman Road Springfield, MI, 49037 Calhoun Battle Creek, MI 54-060-008-01 Revolve States, LLC Mangw n Properties, Inc. 07/6/2022 Recorded $248,600 $248,600 Fee Simple Conventional Arms-Length 18 Months 5,694 1 1960 10 (1.8/1,000 SF NRA) 32% 12 Feet 2 1 Average Average/Good Metal 0.4 Acres (15,507 SF) FH Average Average 37% GRR250041 LIGHT INDUSTRIAL PROPERTY Fy ~ Go Ma a ©2025 Imagery ©2025 Maxar Technolo ANALYSIS INFORMATION Price per SF Adjusted Price per SF $43 Capitalization Rate CONFIRMATION Name Confidential Company Scott Harrington - Harrington Real Estate Source Seller's Broker Date / Phone Number 05/20/2025 Confidential REMARKS Light industrial property constructed circa 1960 and later nicely renovated. The property was listed for $349,900, noting that an adjacent property w as for sale too, but could be purchased singularly. The list price was later reduced to $299,900 and sold for $248,600 after an 18-month marketing period. ION & ADVISORY SERVICES 103
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SALES APPROACH CONTINUED IMPROVED SALES ADJUSTMENT TABLE GRR250041 COMPARABLE 1 COMPARABLE2 COMPARABLES COMPARABLE COMPARABLES Name Former Recreational Light Industrial Property Former Cannabis Light Industrial Property Light Industrial Property Light Industrial Property Center Dispensary Address 2000 East Columbia Ave. 221 North 30th Street 1193 East Michigan 2600 West Dickman Road 2257 West Columbia 2205 West Dickman Road Avenue Avenue City, State Battle Creek, MI Springfield, MI Battle Creek, MI Springfield, MI Battle Creek, MI Springfield, MI Zip 49014 49037 49014 49037 49015 49037 NRA (SF) 5,840 5,120 5,488 10,875 7,302 5,694 Land Area (AC) 3.3 0.9 0.4 0.7 4.0 0.4 Year Built 1987 1990 1950 1960 195 1960 Date 2/29/2024 10/18/2023 6/27/2023 8/5/2022 7168/2022 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $260,000 $299,900 $300,000 $360,000 $248,600 $/SF NRA $51 $55 $28 $49 $44 Property Rights 0% 0% 0% 0% 0% Financing 0% 0% 0% 0% 0% Conditions of Sale 0% 0% 0% 0% 0% Expenditures After the Sale 0% 0% 0% 0% 0% Market Conditions 3% 4% 5% 7% 8% Subtotal Transactional Adj Price $52 $57 $29 $53 $47 Location Average Average Average Average Average Average Adjustment 0% 0% 0% 0% 0% Size 5,840 5,120 5,488 10,875 7.302 5,694 Adjustment 0% 0% 5% 0% 0% Quality Average Average Average/Good Average Average Average Adjustment 0% -10% 0% 0% 0% Condition Average Average/Good Good Fair Good Average/Good Adjustment -10% -20% 20% -20% -10% Exposure Fair/Average Average Average Average Average Average Adjustment 0% 0% 0% 0% 0% Access Average Average Average Average Average Average Adjustment 0% 0% 0% 0% 0% Age 1987 1990 1950 1960 195 1960 Adjustment 0% 0% 0% 0% 0% Clear Height 12-13" 12 Feet 10 Feet 10-12 Feet 10-14 Feet 12 Feet Adjustment 0% 0% 0% 0% 0% L:B Ratio 224 74 3.2 27 23.9 ar Adjustment 3% 3% 3% 0% 3% Subtotal Property Adjustment -8% -28% 28% -20% -8% TOTAL ADJUSTED PRICE $48 $41 $37. $42 $43 STATISTICS UNADJUSTED ADJUSTED $28 $37 $55 $48 $49 $42 $45 $42 — © 2025 COLLIERS INTERNATIONAL VAL ION & ADVISORY SERVICES
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SALES APPROACH CONTINUED GRR250041 SALES COMPARABLE ANALYSIS Introduction The comparable sales indicate an adjusted value range from $37 to $48/SF, with a median of $42/SF and an average of $42/SF. The range of total gross adjustment applied to the comparables was from 15% to 36%, with an average gross adjustment across all comparables of 26%. The level of total adjustment applied to the comparables is considered to be moderate. Overall, the availability of market data and extent of analysis was adequate to develop the subject property's total value. The adjustment process for each comparable sale is discussed in the following paragraphs. Discussion of Adjustments Comparable 1 ($48/SF adjusted) required a total upward transaction adjustment of 3%. This comparable is adjusted upward for improving market conditions. This comparable required a total downward adjustment of -8% for property characteristics. This comparable was adjusted downward for its superior condition, and upward for its inferior land-to-building ratio. The total gross adjustment applied to this comparable was 15%. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given secondary consideration as a value indicator for the subject. Comparable 2 ($41/SF adjusted) required a total upward transaction adjustment of 4%. This comparable is adjusted upward for improving market conditions. This comparable required a total downward adjustment of -28% for property characteristics. This comparable was adjusted downward for its superior quality and condition, and upward for its inferior land-to-building ratio. The total gross adjustment applied to this comparable was 36%. The substantial level of gross adjustments required for this comparable was justified due to the comparable's varying attributes. Considering these factors, this comparable is given primary consideration as a value indicator for the subject. Comparable 3 ($37/SF adjusted) required a total upward transaction adjustment of 5%. This comparable is adjusted upward for improving market conditions. This comparable required a total upward adjustment of 28% for property characteristics. This comparable was adjusted upward for its larger size and inferior condition and land-to-building ratio. The total gross adjustment applied to this comparable was 32%. The substantial level of gross adjustments required for this comparable was justified due to the comparable's varying attributes. Considering these factors, this comparable is given secondary consideration as a value indicator for the subject. Comparable 4 ($42/SF adjusted) required a total upward transaction adjustment of 7%. This comparable is adjusted upward for improving market conditions. This comparable required a total downward adjustment of -20% for property characteristics. This comparable was adjusted downward for its superior condition. The total gross adjustment applied to this comparable was 27%. The substantial level of gross adjustments required for this comparable was justified due to the comparable's varying attributes. Considering these factors, this comparable is given primary consideration as a value indicator for the subject. Comparable 5 ($43/SF adjusted) required a total upward transaction adjustment of 8%. This comparable is adjusted upward for improving market conditions. This comparable required a total downward adjustment of -8% for property characteristics. This comparable was adjusted downward for its superior condition, and upward for its inferior land-to-building ratio. The total gross adjustment applied to this comparable was 20%. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 105
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SALES APPROACH CONTINUED GRR250041 SALES COMPARISON APPROACH CONCLUSION — 12/31/2024The comparable sales indicate an adjusted value range from $37 to $48/SF, with a median of $42/SF and an average of $42/SF. Based on the results of the preceding analysis, Comparable 2 ($41/SF adjusted), Comparable 4 ($42/SF adjusted) and Comparable 5 ($43/SF adjusted) are given primary consideration for the subject's opinion of value. The following table summarizes the analysis of the comparables, reports the reconciled price per NRA value conclusion, and presents the concluded value of the subject property. SALES COMPARISON APPROACH CONCLUSION (NRA) ANALYSIS ADJUSTMENT NET GROSS OVERALL COMP PRICE TRANSACTIONAL" ADJUSTED PROPERTY? FINAL ADJ % ADJ % COMPARISON 1 $51 3% $52 -8% $48 -5% 15% SECONDARY 2 $55 4% $57 -28% $41 -25% 36% PRIMARY 3 $28 5% $29 28% $37 33% 32% SECONDARY 4 $49 7% $53 -20% $42 -14% 27% PRIMARY 5 $44 8% $47 -8% $43 -0% 20% PRIMARY Low $37 AVERAGE $42 HIGH $48 MEDIAN $42 SUBJECT SF $/SF CONCLUSION VALUE INDICATED VALUE 5,840 Xx $42/SF = $250,000 CONTRIBUTORY VALUE OF THE SURPLUS LAND $60,000 RETROSPECTIVE VALUE AS-IS (12/31/2024) $53/SF $310,000 "Cumulative 2Additive Rounded to nearest $10,000 ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 106
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LAND VALUATION GRR250041 INTRODUCTION As previously discussed within the Valuation Methods section, the subject is valued as one marketable economic site in this appraisal. Land value is influenced by a number of factors; most prominent of which is development and use potential. These factors, as well as others, are considered in the following analysis. UNIT OF COMPARISON The most relevant unit of comparison is the price per acre. This indicator best reflects the analysis used by buyers and sellers in this market for land with similar utility and zoning in this marketplace. COMPARABLE SELECTION A thorough search was made for similar land sales in terms of proximity to the subject, size, location, development potential, and date of sale. In selecting comparables, emphasis was placed on confirming recent sales of commercial sites that are similar to the subject property in terms of location and physical characteristics. Overall, the sales selected represent the best comparables available for this analysis. ADJUSTMENT PROCESS Quantitative adjustments are made to the comparable sales. The following adjustments or general market trends were considered for the basis of valuation. Transactional Adjustments Dollar adjustments to the comparable sales were considered and made when warranted for transactional adjustments in the sequence shown below: Property Rights Transferred ~~ The valuation of the subject site was completed on a fee simple basis. If warranted, leased fee, leasehold and/or partial interest land sales were adjusted accordingly. Financing Terms The subject site was valued on a cash equivalent basis. Adjustments were made to the comparables involving financing terms atypical of the marketplace. Conditions of Sale This adjustment accounts for extraordinary motivation on the part of the buyer or seller often associated with distressed sales and/or assemblages. Expenditures After Purchase Adjustments were applied if site conditions warranted expenditures on the part of the buyer to create a buildable site. Examples include costs for razing pre- existing structures, general site clearing and/or mitigation of environmental issues. Market Conditions Market conditions adjustments were based on a review of historical sale data, market participant interviews and review of current versus historical pricing. Based on my research, the following table summarizes the market conditions adjustment applied in this analysis. MARKET CONDITIONS ADJUSTMENT Per Year As Of December 2023 (Retrospective) 0% The market has exhibited value stability during the time from the oldest sale date up through both effective valuation date; therefore a market conditions adjustment is not warranted. ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY. SERVICES 107
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ND VALUATION CONTINUED GRR250041 Property Adjustments Quantitative percentage adjustments are also made for location and physical characteristics such as size, shape, access, exposure, topography, zoning and overall utility. Where possible the adjustments applied are based on paired data or other statistical analysis. For example, location adjustments are based primarily on review of land values in the market areas for the comparables relative to the subject. It should be stressed that the adjustments are subjective in nature and are meant to illustrate my logic in deriving a value opinion for the subject site. PRESENTATION The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. AND SALES SUMMATION TABLE Name Former Recreational Vacant Land Vacant Land Vacant Land Center Address 2000 East Columbia Ave. 4421 West Columbia Avenue 550 General Avenue 15074 6 1/2 Mile Road City Battle Creek Battle Creek Battle Creek Battle Creek State Mi Mi Mi Mi Zip 49014 49015 49037 49014 County Calhoun Calhoun Calhoun Calhoun PHYSICAL INFORMATION Acres 6.75 1.24 2.19 7.51 Location Average Average Fair Average Exposure Fair/Average Average Average Average Access Average Average Average Average Shape Irregular Irregular Rectangular Rectangular Site Utility Rating Average Average Average Average SALE INFORMATION Date 8/4/2023 9/6/2022 1/13/2022 Status Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Transaction Price $25,000 $21,000 $130,000 Analysis Price $25,000 $21,000 $130,000 /Acre $20,129 $9,589 $17,310 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 108
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LAND VALUATION CONTINUED LAND SALES LOCATION MAP iLevel ‘Park: Oak! park Leila, Arboretumy siSociety, Historic: Adventist Village Springfield" DISTANCE ADDRESS - 2000 East Columbia Ave., Battle Creek, MI 7.0 Mles 4421 West Columbia Avenue, Battle Creek, Mi 6.3 Miles 550 General Avenue, Battle Creek, Mi 1.5Mles ~~ 15074 6 1/2 Mie Road, Battle Creek, Mi ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES SALEDATE 8/4/2023 9/6/2022 1/13/2022 GRR250041 Map data ©2025 ACRES 38.3 1,666,587 1.2 54,101 22 95,396 75 327,135 SIACRE $20.129 $9,589 $17,310
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VALUATIO CONTINUED GRR250041 COMPARABLE 1 Name Address City, State, Zip Code County MSA APN Vacant Land 4421 West Columbia Avenue Battle Creek, MI, 49015 Calhoun Battle Creek, MI 0069-00-220-0 SALE INFORMATION Buyer Seller Transaction Date Transaction Status Transaction Price Analysis Price Recording Number David Whitaker SR 4421 Columbia, LLC 08/4/2023 Recorded $25,000 $25,000 VACANT LAN Rights Transferred Fee Simple Price $/Acre $/SF Financing All Cash Gross $20,129 $0.46 Conditions of Sale Arms-Length Net $20,129 $0.46 Meritng Tne fonts PHYSICAL INFORMATION Name Dustin Damon Intended Use Commercial Company RE/MAX Perrett Location Average Source Seller's Broker Site Size (Net) 1.24 Acres (54,101 SF) Date / Phone Number ~~ 05/20/2025 +1269 317 0988 Zoning C2 Two contiguous tax parcels zoned C-2 that were previously improved with a Shape Irregular building that was razed prior to the sale. The property was listed for about 10- Topography Generally Level months with an initial asking price of $95,000 and sold for $25,000. Access Average Exposure Average Corner No Utilities Yes © 2025 COLLIERS INTERNATIONAL VAL ION & ADVISORY SERVICES 110
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LAND VALUATION CONTINUED GRR250041 COMPARABLE 2 Li Name Vacant Land Address 550 General Avenue City, State, Zip Code Battle Creek, MI, 49037 County Calhoun MSA Battle Creek, MI APN 13-54-215-008-00 SALE INFORMATION Buyer Erasmo Hernandez Seller CARE Management, LLC Transaction Date 09/6/2022 Transaction Status Recorded Transaction Price $21,000 Analysis Price $21,000 Financing All Cash i $/Acre $/SF Conditions of Sale Arms-Length $9,589 $0.22 Marketing Time 7 Months Net $9,589 $0.22 Intended Use Commercial Name Paul Schw allier Location Fair Company Great Lakes Signature Properties, LLC Site Size (Net) 2.19 Acres (95,396 SF) Source Seller's Broker Site Size (Gross) 2.19 Acres (95,396 SF) Date / Phone Number #VALUE +1616 490 0932 Shape Rectangular 2.19-acre site zoned IRT in the back of a commercial development with a mix of Topography Level industrial and office type developments. The property was listed for $24,900 and Aisess Average sold for $21k after a 7-month marketing period. Exposure Average Corner No Utilities Yes ©2025 COLLIERS | ION & ADVISORY SERVICES 111
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ND VALUATIO CONTINUED GRR250041 COMPARABLE 3 Vacant Land Address 15074 6 1/2 Mile Road City, State, Zip Code Battle Creek, MI, 49014 County Calhoun MSA Battle Creek, MI 10018 033 01 Buyer Thomas F Gunning Trust Seller James & Janice Bsman Transaction Date 01/13/2022 Transaction Status Recorded Transaction Price $130,000 Analysis pce $130,000 Rights Transferred Fee Simple Price $/Acre $/SF Financing Conventional Gross $17,310 $0.40 Conditions of Sale Arms-Length $17,310 $0.40 Merctng Tre 2wons Location Average any Callander Commercial Site Size (Net) 7.51 Acres (327,135 SF) Source Seller's Broker Site Size (Gross) 7.51 Acres (327,135 SF) Date / Phone Number ~~ 05/20/2025 +1269 373 8102 Shape Rectangular Former AM radio station with a small office onsite and 4 radio tow ers, how ever Topography Generally Level broker indicated value is in the land. The property was listed for $149k and sold for $130k after a 2-month marketing period. Access Average Exposure Average Corner No Utilities Yes © 2025 COLLIERS INTERNATIONAL VAL ION & ADVISORY SERVICES 1
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LAND VALUATION CONTINUED LAND S LES ADJU GRR250041 ENT TABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 Name Former Recreational Center Vacant Land Vacant Land Vacant Land Address 2000 East Columbia Ave. 4421 West Columbia Avenue 550 General Avenue 15074 6 1/2 Mile Road City Battle Creek Battle Creek Battle Creek Battle Creek 6.75 1.24 2.19 7.51 e Status Rights Transferred Analysis Price SALE INFORMATION Recorded Fee Simple $25,000 $20,129 Acres Dat: 8/4/2023 9/6/2022 1/13/2022 Recorded Recorded Fee Simple Fee Simple $21,000 $130,000 $9,589 $17,310 TRANSACTIONAL ADJUSTMENTS Price/Acre 0% 0% Property Rights Financing Conditions of Sale Expenditures After the Sale Market Conditions* 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Subtotal Transactional Adj Price $20,129 $9,589 $17,310 PROPERTY ADJUSTMENTS Location Average Average Fair Average Adjustment 0% 20% 0% Size 6.75 1.24 2.19 7.51 Adjustment -10% -5% 0% Exposure Fair/Average Average Average Average Adjustment 0% 0% 0% Access Average Average Average Average Adjustment 0% 0% 0% Shape Irregular Irregular Rectangular Rectangular Adjustment 0% 0% 0% Site Utility Rating Average Average Average Average Adjustment 0% 0% 0% Zoning LI Cc-2 IRT LI Adjustment 0% 0% 0% Topography Sloping Generally Level Level Generally Level Adjustment 0% 0% 0% Utilities Yes Yes Yes Yes Adjustment 0% 0% 0% Subtotal Property Adjustment -10% 15% 0% TOTAL ADJUSTED PRICE $18.1 $11,027 $17,310 STATISTICS UNADJUSTED ADJUSTED Low $9,589 $11,027 HIGH $20,129 $18,116 MEDIAN $17,310 $17,310 AVERAGE $15,676 $15,485 " Market Conditions Adjustment: 0% Date of Value (for adjustment calculations): 12/31/23 © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 113
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LAND VALUATION CONTINUED GRR250041 LAND SALES ANALYSIS Introduction The comparable land sales indicate an adjusted value range from $11,027 to $18,116/Acre, with a median of $17,310/Acre and an average of $15,485/Acre. The range of total gross adjustment applied to the comparables was from 0% to 25%, with an average gross adjustment across all comparables of 12%. The level of total adjustment applied to the comparables is considered to be moderate. Overall, the availability of market data and extent of analysis was adequate to develop a reasonably credible opinion of land value. The adjustment process for each comparable land sale is discussed in the following paragraphs. Discussion of Adjustments Comparable 1 ($18,116/Acre adjusted) did not require any transaction adjustments. This comparable required a total downward adjustment of -10% for property characteristics. The total gross adjustment applied to this comparable was 10%. The moderate level of gross adjustments required for this comparable indicates that it can be adequately relied upon for valuation of the subject. This comparable is given primary consideration as a value indicator for the subject. Comparable 2 ($11,027/Acre adjusted) did not require any transaction adjustments. This comparable required a total upward adjustment of 15% for property characteristics. The total gross adjustment applied to this comparable was 25%. The substantial level of gross adjustments required for this comparable was justified due to the comparable's varying attributes. Considering these factors, this comparable is given secondary consideration as a value indicator for the subject. Comparable 3 ($17,310/Acre adjusted) did not require any transaction adjustments. This comparable did not require any property characteristic adjustments. The total gross adjustment applied to this comparable was 0%. With no adjustments required, this comparable is viewed as a good substitute for the subject. For this analysis, this comparable commands primary consideration as a value indicator for the subject. LAND VALUE CONCLUSION The comparable land sales indicate an adjusted value range from $11,027 to $18,116/Acre, with a median of $17,310/Acre and an average of $15,485/Acre. Based on the results of the preceding analysis, Comparable 1 ($18,116/Acre adjusted) and Comparable 3 ($17,310/Acre adjusted) are given primary consideration for the subject's opinion of land value. This is under the assumption that the surplus land could be sold / developed separately. © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 114
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LAND VALUATION CONTINUED GRR250041 The following table summarizes the analysis of the comparables, reports the reconciled price per acre value conclusion, and presents the concluded value of the subject site. CALCULATION OF LAND VALUE ANALYSIS ADJUSTMENT NET GROSS OVERALL COMP PRICE TRANSACTIONAL" ADJUSTED PROPERTY? FINAL ADJ % ADJ % COMPARISON 1 $20,129 0% $20,129 -10% $18,116 -10% 10% PRIMARY 2 $9,589 0% $9,589 15% $11,027 15% 25% SECONDARY 3 $17,310 0% $17,310 0% $17,310 0% 0% PRIMARY Low $11,027 AVERAGE $15,485 HIGH $18,116 MEDIAN $17,310 COMPONENT SUBJECT ACRES $/ACRE CONCLUSION VALUE Surplus 6.75 x $17,500 = $120,000 TOTAL PROPERTY 6.75 x $17,778 = $120,000 Deduction For Surplus (50%) ($60,000) TOTAL ADJUSTED VALUE $60,000 "Cumulative 2Additive Rounded to nearest $10,000 ADJUSTMENTS TO VALUE In speaking with brokers and market participants as it relates to the contributory value of surplus land, there are several factors that effect the likeliness that a buyer would pay full market value (as if excess land). Some of these factors include: Size, shape and location of the surplus land: Quality or usefulness of the surplus land; and, e Likeliness in the local market that the surplus land would be developed or utilized; In this market, it is noted that a number of properties along Columbia Avenue have some surplus land in the rear of the property (particularly on the south side of Columbia). Some of the sites are long and narrow, and others are wider and could more easily be utilized in conjunction with vertical or site improvement. Some of the land is located within an area prone to flooding (near the Kalamazoo River) and some is attached to properties that are more or less likely to see the surplus land utilized (as opposed to remaining unused land). In the case of the subject, the surplus land area is somewhat irregular in shape, has a developable size (6.75- acres) and the area prone to flooding and other non-usable areas have not been included. Thus, the subject's surplus land has more positives than negatives. In speaking with local brokers and market participants, contributory value of surplus land can range from almost nothing (not likely to be ever used / developed) to full excess land value (market conditions support immediate expansion). Most land falls in the 25% to 75% range. For the subject, the market wouldn't support immediate expansion or development of the surplus land. Further, the site is located off of Columbia Ave. and has limited visibility. Overall, we have concluded that the subject's surplus land contributes about half of excess land value, which is applied as an adjustment. Thus results in a contributory value of the surplus land to be $60,000 (rounded). This value is added to the value conclusions in the sales and income approaches for both 12/31/2023 and 12/31/2024 and is not intended to be a “stand alone” value. ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY. SERVICES 115
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RECONCILIATION OF VALUE CONCLUSIONS GRR250041 INTRODUCTION The Reconciliation of Value Conclusions is the final step in the appraisal process and involves the weighing of the individual valuation techniques in relationship to their substantiation by market data, and the reliability and applicability of each valuation technique to the subject property. Understanding the profiles of potential buyers and their typical reliance on each approach to value strongly influences the weighting process. In the open market, the subject property type would command most interest from regional and local buyers that are actively pursuing similar owner-user properties. There is currently steady buyer demand for substitute properties of the subject based on the volume of sale transactions and reports by buyers, sellers and other market participants during confirmation of market transactions. The most probable buyer is an owner user. The sales comparison approach was consistent with the findings of the income approach. It was reliable in that it used similar nearby properties and has comparisons that required limited adjustments. Itis also the approach most often utilized by owner/users. The income approach, on the other hand, provided a value conclusion based on the income and expense dynamics specific to the subject property. The subject's income and expenses were closely corroborated by market evidence and the capitalization rate indicators were extracted from the market and were consistent. This approach, however, is typically not given as much weight by the typical buyer of the subject. Overall, each approach has areas of reliability and limitations. Based on the overall quality of the data and analyses, and considering the decision-making process of the typical buyer profile of the subject asset, primary emphasis was placed on the sales comparison approach, which is reflected in my final opinions of market value below. PRESENTATION OF VALUE CONCLUSIONS My opinion of value reflects current conditions and the likely actions of market participants as of the date of value. It is based on the available information gathered and provided to us, as presented in this report, and does not predict future performance. Changing market or property conditions can and likely will have an effect on the subject's value. The following table summarizes my final opinions of the Retrospective Market Value and As-Is Market Value of the subject property's fee simple interest. ANALYSIS OF VALUE CONCLUSIONS RETROSPECTIVE RETROSPECTIVE VALUATION INDICES VALUE AS-IS VALUE AS-IS INTEREST APPRAISED FEE SIMPLE FEE SIMPLE DATE OF VALUE DECEMBER 31, 2023 DECEMBER 31, 2024 Sales Comparison Approach $300,000 $310,000 Income Approach $280,000 $290,000 FINAL VALUE CONCLUSION $300,000 $310,000 $/SF $51/SF $53/SF Exposure Time 12 Months or Less Marketing Period 12 Months or Less © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 116
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CERTIFICATION GRR250041 | certify that, to the best of my knowledge and belief: > The statements of fact contained in this report are true and correct. » The reported analyses, opinions, and conclusions of the signer are limited only by the reported assumptions and limiting conditions, and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions. » The signer of this report have no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved. » William Fowler, MAI has performed no 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. » The signer is not biased with respect to the property that is the subject of this report or to the parties involved with this assignment. >» The engagement in this assignment was not contingent upon developing or reporting predetermined results. > The 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. >» The reported analysis, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice and the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. >» William Fowler, MAI inspected the property that is the subject of this report. > No one provided significant real property appraisal assistance to appraiser signing this certification. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. As of the date of this report William Fowler, MAI completed the continuing education program for Designated Members of the Appraisal Institute. In Michigan, appraisers are required to be licensed and are regulated by the Michigan Department of Licensing and Regulatory Affairs, P.O. Box 30018, Lansing, Michigan 48909. = 4 “Jo May 29, 2025 William Fowler, MAI Date Valuation Services Director Certified General Real Estate Appraiser State of Michigan License #1205072943 +1616 988 5843 will. fowler@colliers.com ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 17
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ASSUMPTIONS & LIMITING CONDITIONS GRR250041 This appraisal is subject to the following assumptions and limiting conditions: » The appraiser may or may not have been provided with a survey of the subject property. If further verification is required, a survey by a registered surveyor is advised. » | assume no responsibility for matters legal in character, nor do we render any opinion as to title, which is assumed to be marketable. All existing liens, encumbrances, and assessments have been disregarded, unless otherwise noted, and the property is appraised as though free and clear, under responsible ownership, and competent management. » The exhibits in this report are included to assist the reader in visualizing the property. | have made no survey of the property and assume no responsibility in connection with such matters. » Unless otherwise noted herein, it is assumed that there are no encroachments, zoning, or restrictive violations existing in the subject property. » The appraiser assumes no responsibility for determining if the property requires environmental approval by the appropriate governing agencies, nor if it is in violation thereof, unless otherwise noted herein. > Information presented in this report has been obtained from reliable sources, and it is assumed that the information is accurate. » This report shall be used for its intended purpose only, and by the party to whom it is addressed. Possession of this report does not include the right of publication. » The appraiser may not be required to give testimony or to appear in court by reason of this appraisal, with reference to the property in question, unless prior arrangements have been made therefore. > The statements of value and all conclusions shall apply as of the dates shown herein. » There is no present or contemplated future interest in the property by the appraiser which is not specifically disclosed in this report. » Without the written consent or approval of the author neither all, nor any part of, the contents of this report shall be conveyed to the public through advertising, public relations, news, sales, or other media. This applies particularly to value conclusions and to the identity of the appraiser and the firm with which the appraiser is connected. » This report must be used in its entirety. Reliance on any portion of the report independent of others, may lead the reader to erroneous conclusions regarding the property values. Unless approval is provided by the author no portion of the report stands alone. » The valuation stated herein assumes professional management and operation of the buildings throughout the lifetime of the improvements, with an adequate maintenance and repair program. » The liability of Colliers International Valuation & Advisory Services, its principals, agents, and employees is limited to the client. Further, there is no accountability, obligation, or liability to any third party. If this report is placed in the hands of anyone other than the client, the client shall make such party aware of all limiting conditions and assumptions of the assignment and related discussions. The appraiser is in no way responsible for any costs incurred to discover or correct any deficiency in the property. » The appraiser is not qualified to detect the presence of toxic or hazardous substances or materials which may influence or be associated with the property or any adjacent properties, has made no investigation or analysis as to the presence of such materials, and expressly disclaims any duty to note the degree of fault. Colliers International Valuation & Advisory Services and its principals, agents, employees, shall not be liable for any costs, expenses, assessments, or penalties, or diminution in value, property damage, or personal © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 118
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ASSUMPTIONS & LIMITING CONDITIONS CONTINUED GRR250041 injury (including death) resulting from or otherwise attributable to toxic or hazardous substances or materials, including without limitation hazardous waste, asbestos material, formaldehyde, or any smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals, liquids, solids or gasses, waste materials or other irritants, contaminants or pollutants. » The appraiser assumes no responsibility for determining if the subject property complies with the Americans with Disabilities Act (ADA). Colliers International Valuation & Advisory Services, its principals, agents, and employees, shall not be liable for any costs, expenses, assessments, penalties or diminution in value resulting from non-compliance. This appraisal assumes that the subject meets an acceptable level of compliance with ADA standards; if the subject is not in compliance, the eventual renovation costs and/or penalties would negatively impact the present value of the subject. If the magnitude and time of the cost were known today, they would be reduced from the reported value conclusion. » An on-site inspection of the subject property was conducted. No evidence of asbestos materials on-site was noted. A Phase 1 Environmental Assessment was not provided for this analysis. This analysis assumes that no asbestos or other hazardous materials are stored or found in or on the subject property. If evidence of hazardous materials of any kind occurs, the reader should seek qualified professional assistance. If hazardous materials are discovered and if future market conditions indicate an impact on value and increased perceived risk, a revision of the concluded values may be necessary. > A detailed soils study was not provided for this analysis. The subject's soils and sub-soil conditions are assumed to be suitable based upon a visual inspection, which did not indicate evidence of excessive settling or unstable soils. No certification is made regarding the stability or suitability of the soil or sub-soil conditions. > This analysis assumes that the financial information provided for this appraisal, including rent rolls and historical income and expense statements; accurately reflect the current and historical operations of the subject property. ©2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 119
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DDENDA GRR250041 Engagement Letter Valuation Glossary Qualifications of Appraiser Qualifications of Colliers International Valuation & Advisory Services © 2025 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 120
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pal Valuation & Advisory Service lt. Please sign one copy of the Bd with this assignment and yo MOFESSIONAL SERVICE AGREEME | (“Agreement”) fie Creek, MI 49014-6300
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1d expenses Pppraisal and One (1) Electronic Fin [delivered to the client. | prior to our proceeding. TE to hation & Advisory Services
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Valuation Glossary 2024 Colliers Unless specified otherwise, these definitions were extracted or paraphrased from the following sources or publications: « The Dictionary of Real Estate Appraisal, Seventh Edition, Appraisal Institute, Chicago, lllinois, 2022 (Dictionary). « Uniform Standards of Professional Appraisal Practice, 2020-2023 Edition (USPAP). « The Appraisal of Real Estate, Fifteenth Edition, Appraisal Institute, Chicago, Illinois, 2020 (15th Edition). Absolute Net Lease A lease in which the tenant pays all expenses including structural maintenance, building reserves, and management; often a long-term lease to a credit tenant. (Dictionary) Ad Valorem Tax A real estate tax based on the assessed value of the property, which is not necessarily equivalent to its market value. (15th Edition) Arm’s-length Transaction A transaction between unrelated parties who are each acting in his or her own best interest. (Dictionary) As-Is Market Value The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date. (Dictionary) Assessed Value The value of a property according to the tax rolls in ad valorem taxation; may be higher or lower than market value, or based on an assessment ratio that is a percentage of market value. (Dictionary) Average Daily Room Rate (ADR) In the lodging industry, the net rooms revenue derived from the sale of guest rooms divided by the number of paid occupied rooms. (Dictionary) Band of Investment A technique in which the capitalization rates attributable to components of an investment are weighted and combined to derive a weighted-average rate attributable to the total investment. (Dictionary) Cash-Equivalent Price The sale price of a property that is equivalent to what a cash buyer would pay. (Dictionary) Common Area The total area within a property that is not designed for sale or rental but is available for common use by all owners, tenants, or their invitees, e.g., parking and its appurtenances, malls, sidewalks, landscaped areas, recreation areas, public toilets, truck and service facilities. (Dictionary) Contract Rent The actual rental income specified in a lease. (15th Edition) Cost Approach A set of procedures through which a value indication is derived for the fee simple estate by estimating the cost new as of the effective date of the appraisal to construct a reproduction of (or replacement for) the existing structure, including an entrepreneurial incentive; deducting depreciation from the total cost; and adding the estimated land value. The contributory value of any site improvements that have not already been considered in the total cost can be added on a depreciated-cost basis. Adjustments may then be made to the indicated value of the fee simple estate in the subject property to reflect the value of the property rights being appraised. (Dictionary) Curable Functional Obsolescence An element of depreciation; a curable defect caused by a flaw involving the structure, materials, or design, which can be practically and economically corrected. (Dictionary) Debt Coverage Ratio (DCR) The ratio of net operating income to annual debt service, which measures the relative ability of a property to meet its debt service out of net operating income; also called debt service coverage ratio (DSCR). (Dictionary) Deferred Maintenance Items of wear and tear on a property that should be fixed now to protect the value or income-producing ability of a property. (Dictionary) Depreciation In appraisal, a loss in the value of improvements from any cause; the difference between the cost of an improvement on the effective date of the appraisal and the value of the improvement on the same date. (Dictionary) Direct Costs Expenditures for the labor and materials used in the construction of improvements; also called hard costs. (Dictionary) Discounted Cash Flow (DCF) Analysis The procedure in which a discount rate is applied to a set of projected income streams and a reversion. The analyst specifies the quantity, variability, timing, and duration of the income streams and the quantity and timing of the reversion, and discounts each to its present value at a specified yield rate. (Dictionary) Accelerating success.
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Discount Rate Arate of return on capital used to convert future payments or receipts into present value. (Dictionary) Disposition Value The most probable price that a specified interest in property should bring under the following conditions: 1. Consummation of a sale within a specified time, which is shorter than the typical exposure time for such a property in that market. 2. The property is subjected to market conditions prevailing as of the date of valuation. 3. Both the buyer and seller are acting prudently and knowledgeably. 4. The seller is under compulsion to sell. 5. The buyer is typically motivated. 6. Both parties are acting in what they consider their best interests. 7. An adequate marketing effort will be made during the exposure time. 8. Payment will be made in cash in U.S. dollars (or the local currency) or in terms of financial arrangements comparable thereto. 9. 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. This definition can also be modified to provide for valuation with specified financing terms. (Dictionary) Easement The right to use another's land for a stated purpose. Access or right-of-way easements may be acquired by private parties or public utilities. Governments may be the beneficiaries of easements placed on privately owned land that is dedicated to conservation, open space, or preservation. (15th Edition) Economic Life The period over which improvements to real estate contribute to property value. (Dictionary) Effective Age The age of property that is based on the amount of observed deterioration and obsolescence it has sustained, which may be different from its chronological age. (Dictionary) Effective Date The date on which the appraisal or review opinion applies (SVP) (Dictionary) Effective Gross Income (EGI) The anticipated income from all operations of the real estate after an allowance is made for vacancy and collection losses and an addition is made for any other income. (Dictionary) Effective Gross Income Multiplier (EGIM) The ratio between the sale price (or value) of a property and its effective gross income. (Dictionary) Colliers Effective Rent The total base rent, or minimum rent stipulated in a lease, over the specified lease term minus rent concessions - e.g. free rent, excessive tenant improvements, moving allowances, lease buyouts, cash allowances, and other lease incentives, (15th Edition) Eminent Domain The right of government to take private property for publicuse upon the payment of just compensation. The Fifth Amendment of the U.S. Constitution, also known as the takings clause, guarantees payment of just compensation upon appropriation of private property. (Dictionary) Entrepreneurial Incentive The amount an entrepreneur expects or wants to receive as compensation for providing coordination and expertise and assuming the risks associated with the development of a project. Entrepreneurial incentive is the expectation of future reward as opposed to the profit actually earned on the project. (Dictionary) Entrepreneurial Profit A market-derived figure that represents the amount an entrepreneur received for his or her contribution to a past project to compensate for his or her time, effort, knowledge, and risk; the difference between the total cost of a property (cost of development) and its market value (property value after completion), which represents the entrepreneur's compensation for the risk and expertise associated with development. An entrepreneur is motivated by the prospect of future value enhancement (i.e, the entrepreneurial incentive). An entrepreneur who successfully creates value through new development, expansion, renovation, or an innovative change of use is rewarded by entrepreneurial profit. Entrepreneurs may also fail and suffer losses. (Dictionary) Excess Land Land that is not needed to serve or support the existing use. The highest and best use of the excess land may or may not be the same as the highest and best use of the improved parcel. Excess land has the potential to be sold separately and is valued separately. (Dictionary) Excess Rent The amount by which contract rent exceeds market rent at the time of the appraisal; created by a lease favorable to the lessor and may reflect superior management, a lease execution in an earlier, stronger rental market, or an agreement of the parties. Due to the higher risk inherent in the receipt of excess rent, it may be calculated separately and capitalized or discounted at a higher rate in the income capitalization approach. (15th Edition) Expense Stop A dause in a lease that limits the landlord's expense obligation, which results in the lessee paying any operating expenses above a stated level or amount. (Dictionary) Accelerating success.
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Exposure Time An opinion, based on supporting market data, of the length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal. (USPAP) Extraordinary Assumption An assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser's opinions or conclusions. Uncertain information might include physical, legal, or economic characteristics of the subject property; or conditions external to the property, such as market conditions or trends; or the integrity of data used in an analysis. An extraordinary assumption may be used in an assignment only if: e It is required to properly develop credible opinions and conclusions; e The appraiser has a reasonable basis for the extraordinary assumption; e Use of the extraordinary assumption results in a credible analysis; and eo The appraiser complies with the disclosure requirements set forth in USPAP for extraordinary assumptions. (USPAP) External Obsolescence A type of depreciation; a diminution in value caused by negative external influences and generally incurable on the part of the owner, landlord, or tenant. The external influence may be either temporary or permanent. There are two forms of external obsolescence: economic and locational. (Dictionary) Fair Market Value In nontechnical usage, a term that is equivalent to the contemporary usage of market value. As used in condemnation, litigation, income tax, and property tax situations, a term that is similar in concept to market value but may be defined explicitly by the relevant agency or interpreted differently by court precedent. (Dictionary) Feasibility Analysis A study of the cost-benefit relationship of an economic endeavor. (USPAP) Fee Simple Estate Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat. (Dictionary) Floor Area Ratio (FAR) The relationship between the above-ground floor area of a building, as described by the zoning or building code, and the area of the plot on which it stands; in planning and zoning, often expressed as a decimal, e.g., a ratio of 2.0 indicates that Colliers the permissible floor area of a building is twice the total land area. (Dictionary) Functional Obsolescence The impairment of functional capacity of improvements according to market tastes and standards. (Dictionary) Functional Utility The ability of a property or building to be useful and to perform the function for which it is intended according to current market tastes and standards; the efficiency of a building's use in terms of architectural style, design and layout, traffic patterns, and the size and type of rooms. (Dictionary) Furniture, Fixtures, and Equipment (FF&E) Business trade fixtures and personal property, exclusive of inventory. (Dictionary) Going-concern An established and operating business having an indefinite future life. (Dictionary) Going-concern Value An outdated label for the market value of all the tangible and intangible assets of an established and operating business with an indefinite life, as if sold in aggregate; more accurately termed the market value of the going concern or market value of the total assets of the business. (Dictionary) Gross Building Area (GBA) Total floor area of a building, excluding unenclosed areas, measured from the exterior of the walls of the above-grade area. This includes mezzanines and basements if and when typically included in the market area of the type of property involved. (Dictionary) Gross Leasable Area (GLA) Total floor area designed for the occupancy and exclusive use of tenants, including basements and mezzanines; measured from the center of joint partitioning to the outside wall surfaces. (Dictionary) Gross Living Area (GLA) Total area of finished, above-grade residential space area; calculated by measuring the outside perimeter of the structure and includes only finished, habitable, above-grade living space. (Finished basements and attic areas are not generally included in total gross living area. Local practices, however, may differ.) (Dictionary) Highest & Best Use The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. The use of an asset that maximizes its potential and that is possible, legally permissible, and financially feasible. The highest and best use may be for continuation of an asset's existing use or for some alternative use. This is determined by the use that a market Accelerating success.
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participant would have in mind for the asset when formulating the price that it would be willing to bid (IVS). (Dictionary) Hypothetical Condition 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 purpose of analysis. Hypothetical conditions are contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. (USPAP) Income Capitalization Approach In the income capitalization approach, an appraiser analyzes a property's capacity to generate future benefits and capitalizes the income into an indication of present value. The principle of anticipation is fundamental to this approach. Techniques and procedures from this approach are used to analyze comparable sales data and to measure obsolescence in the cost approach. (75th Edition) Incurable Functional Obsolescence An element of depreciation; a defect caused by a deficiency or superadequacy involving the structure, materials, or design that cannot be practically or economically corrected as of the effective date of the appraisal. (Dictionary) Indirect Costs Expenditures or allowances for items other than labor and materials that are necessary for construction, but are not typically part of the construction contract. Indirect costs may include administrative costs, professional fees, financing costs and the interest paid on construction loans, taxes and the builder's or developer's all-risk insurance during construction, and marketing, sales, and lease-up costs incurred to achieve occupancy or sale. Also called soft costs. (Dictionary) Interim Use The use contemplated by the market participants that the subject real estate can be put to while waiting for certain subsequent factors to occur. (Dictionary) Investment Value The value of a property to a particular investor or class of investors based on the investor's specific requirements. Investment value may be different from market value because it depends on a set of investment criteria that are not necessarily typical of the market. (Dictionary) Leased Fee Interest The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversion right when the lease expires. (Dictionary) Leasehold Estate The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease. (Dictionary) Colliers Legal Nonconforming Use A use that was lawfully established and maintained, but no longer conforms to the use regulations of its current zoning; sometimes known as a legally nonconforming use. (Dictionary) Liquidation Value The most probable price that a specified interest in property should bring under the following conditions: 1. Consummation of a sale within a short time period. 2. The property is subjected to market conditions prevailing as of the date of valuation. 3. Both the buyer and seller are acting prudently and knowledgeably. 4. The seller is under extreme compulsion to sell. 5. The buyer is typically motivated. 6. Both parties are acting in what they consider to be their best interests. 7. A normal marketing effort is not possible due to the brief exposure time. 8. Payment will be made in cash in U.S. dollars (or the local currency) or in terms of financial arrangements comparable thereto. 9. 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. This definition can also be modified to provide for valuation with specified financing terms. (Dictionary) Market Area The geographic region from which a majority of demand comes and in which the majority of competition is located. Depending on the market, a market area may be further subdivided into components such as primary, secondary, and tertiary market areas, or the competitive market area may be distinguished from the general market area. (Dictionary) Market Rent The most probable rent that a property should bring in a competitive and open market under all conditions requisite to a fair lease transaction, the lessee and lessor each acting prudently and knowledgeably, and assuming the rent is not affected by undue stimulus. (Dictionary) Market Study An analysis of the market conditions of supply, demand, and pricing for a specific property type in a specific area. (Dictionary) Market Value (Most Common Non-FRT) The most probable price, as of a specific date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that neither is under undue distress. (Dictionary) Accelerating success.
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Market Value (Interagency Guidelines) 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. areasonable 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. ( 72 CFR, Part 34, Subpart C - Appraisals, 34.42(h)). Marketability Analysis The study of how a specific property is expected to perform in a specific market. A marketability analysis expands on a market analysis by addressing a specific property. (Dictionary) Neighborhood Analysis The objective analysis of observable or quantifiable data indicating discernible patterns of urban growth, structure, and change that may detract from or enhance property values; focuses on four sets of considerations that influence value: social, economic, governmental, and environmental factors. (Dictionary) Net Net Net Lease An alternative term for a type of net lease. In some markets, a net net net lease is defined as a lease in which the tenant assumes all expenses (fixed and variable) of operating a property except that the landlord is responsible for structural maintenance, building reserves, and management. Also called NNN lease, triple net lease, or fully net lease. (Dictionary) Net Operating Income (NOI) The actual or anticipated net income that remains after all operating expenses are deducted from effective gross income but before mortgage debt service and book depreciation are deducted. Note: This definition mirrors the convention used in corporate finance and business valuation for EBITDA (earnings before interest, taxes, depreciation, and amortization). (15th Edition) Obsolescence One cause of depreciation; an impairment of desirability and usefulness caused by new inventions, changes in design, improved processes for production, or external factors that make a property less desirable and valuable for a continued use; may be either functional or external. (Dictionary) Colliers Off-site Costs Costs incurred in the development of a project excluding on- site costs such as grading and construction of the building and other improvements; also called common costs or off-site improvement costs. (Dictionary) On-site Costs Costs incurred for the actual construction of buildings and improvements on a particular site. (Dictionary) Overage Rent The percentage rent paid over and above the guaranteed minimum rent or base rent; calculated as a percentage of sales in excess of a specified breakeven sales volume. (75th Edition) Overall Capitalization Rate (OAR) The relationship between a single year's net operating income expectancy and the total property price or value. (Dictionary) Parking Ratio The ratio of parking area or parking spaces to an economic or physical unit of comparison. Minimum required parking ratios for various land uses are often stated in zoning ordinances. (Dictionary) Potential Gross Income (PGI) The total income attributable to property at full occupancy before vacancy and operating expenses are deducted. (Dictionary) Potential Gross Income Multiplier (PGIM) The ratio between the sale price (or value) of a property and its annual potential gross income. (Dictionary) Present Value (PV) The value of a future payment or series of future payments discounted to the current date or to time period zero. (Dictionary) Prospective Opinion of Value A value opinion effective as of a specified future date. The term does not define a type of value. Instead, it identifies a value opinion as effective at some specific future date. An opinion of value as of a prospective date is frequently sought in connection with projects that are proposed, under construction, or under conversion to a new use, or those that have not achieved sellout or a stabilized level of long-term occupancy. (Dictionary) Qualitative Adjustment An indication that one property is superior, inferior, or similar to another property. Note that the common usage of the term is a misnomer in that an adjustment to the sale price of a comparable property is not made. Rather, the indication of a property's superiority or inferiority to another is used in relative comparison analysis, bracketing, and other forms of qualitative analysis. (Dictionary) Accelerating success.
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Quantitative Adjustment In the application of the sales comparison and income capitalization approaches, a numerical (dollar or percentage) adjustment to the sale price, rent, or expense amount of a comparable property to account for the effect on value of a difference between each comparable property and the subject property. (Dictionary) Rentable Area The amount of space on which the rent is based: calculated according to local practice. (Dictionary) Replacement Cost The estimated cost to construct, at current prices as of a specific date, a substitute for a building or other improvements, using modern materials and current standards, design, and layout. (Dictionary) Replacement Cost for Insurance Purposes The estimated cost, at current prices as of the effective date of valuation, of a substitute for the building being valued, using modern materials and current standards, design and layout for insurance coverage purposes guaranteeing that damaged property is replaced with a new property (i.e., depreciation is not deducted). (Dictionary) Reproduction Cost The estimated cost to construct, at current prices as of the effective date of the appraisal, an exact duplicate or replica of the building being appraised, using the same or similar materials, construction standards, design, layout, and quality of workmanship and embodying all the deficiencies, superadequacies, and obsolescence of the subject building. (Dictionary) Retrospective Value Opinion A value opinion effective as of a specified historical date. The term retrospective does not define a type of value. Instead, it identifies a value opinion as being effective at some specific prior date. Value as of a historical date is frequently sought in connection with property tax appeals, damage models, lease renegotiation, deficiency judgments, estate tax, and condemnation. Inclusion of the type of value with this term is appropriate, e.g. “retrospective market value opinion.” (Dictionary) Sales Comparison Approach The process of deriving a value indication for the subject property by comparing sales of similar properties to the property being appraised, identifying appropriate units of comparison, and making adjustments to the sale prices (or unit prices, as appropriate) of the comparable properties based on relevant, market-derived elements of comparison. The sales comparison approach may be used to value improved properties, vacant land, or land being considered vacant when an adequate supply of comparable sales is available. (Dictionary) Colliers Scope of Work The type and extent of research and analysis in an appraisal or appraisal review assignment. Scope of work includes, but is not limited to: The extent to which the property is identified; The extent to which tangible property is inspected; The type and extent of data researched; and The type and extent of analysis applied to arrive at opinions or conclusions. (USPAP) Shopping Center Types Neighborhood Shopping Center: The smallest type of shopping center, generally with a gross leasable area of between 30,000 and 100,000 square feet. Typical anchors include supermarkets, Neighborhood shopping centers offer convenience goods and personal services and usually depend on a market population support of 3,000 to 40,000 people. Community Shopping Center: A shopping center of 100,000 to 400,000 square feet that usually contains one junior department store, a variety store, discount or department store. Acommunity shopping center generally has between 20 and 70 retail tenants and a market population support of 40,000 to 150,000 people. Regional Shopping Center: A shopping center of 300,000 to 900,000 square feet that is built around one or two full-line department stores of approximately 200,000 square feet each plus small tenant spaces. This type of center is typically supported by a minimum population of 150,000 people. Super-Regional Center: A large center of 600,000 to 2.0 million square feet anchored by three or more full-line department stores. This type of center is typically supported by a population area of 300,000 people. (15th Edition) Sum of the Retail Values The sum of the separate and distinct market value opinions for each of the units in a condominium; subdivision development, or portfolio of properties, as of the date of valuation. The aggregate of retail values does not represent the value of all the units as sold together in a single transaction; it is simply the total of the individual market value conclusions. An appraisal has an effective date, but summing the sales prices of multiple units over an extended period of time will not be the value on that one day unless the prices are discounted to make the value equivalent to what another developer or investor would pay for the bulk purchase of the units. Also called the aggregate of the retail values or aggregate retail selling price. (Dictionary) Superadequacy An excess in the capacity or quality of a structure or structural component; determined by market standards. (Dictionary) Accelerating success.
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Surplus Land Land that is not currently needed to support the existing use but cannot be separated from the property and sold off for another use. Surplus land does not have an independent highest and best use and may or may not contribute value to the improved parcel. (Dictionary) Tenant Improvements (Tis) 1. Fixed improvements to the land or structures installed for use by a lessee. 2. The original installation of finished tenant space in a construction project; subject to periodic change for succeeding tenants. (Dictionary) Usable Area The area that is actually used by the tenants measured from the inside of the exterior walls to the inside of walls separating the space from hallways and common areas. (Dictionary) Useful Life The period of time over which a structure or a component of a property may reasonably be expected to perform the function for which it was designed. (Dictionary) Vacancy and Collection Loss A deduction from potential gross income (PGI) made to reflect income deductions due to vacancies, tenant turnover, and nonpayment of rent; also called vacancy and credit loss or vacancy and contingency loss. (Dictionary) Yield Capitalization A method used to convert future benefits into present value by (1) discounting each future benefit at an appropriate yield rate, or (2) developing an overall rate that explicitly reflects the investment's income pattern, holding period, value change, and yield rate. (Dictionary) Colliers Accelerating success.
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Valuation Services Director Valuation & Advisory Services will.fowler@colliers.com Direct: +1 616 988 5843 Mobile: +1 616/970 8040 Fax: +1 616 242 0612 colliers.com 333 Bridge St NW. Suite 1200 Grand Rapids, MI 49504 United States Education or Qualifications Ball State University State Certifications Michigan William Fowler, MAI Area of Expertise William P. Fowler, MAI serves as Valuation Services Director for Colliers International Valuation & Advisory Services in Grand Rapids, Michigan. Prior to joining the Colliers team, Will gained extensive real estate experience by heading offices for regional and national companies. Mr, Fowler has extensive experience in commercial real estate valuations on a variety of local, regional and national investment properties, focused on the Midwest including Michigan, Indiana, Ohio, Kentucky and West Virginia. His experience includes a wide array of owner-occupied, single and multi-tenant properties including retail, office and industrial use properties. Other real estate assignments include: multi-family residential, mobile home parks, automobile dealerships, self- storage facilities, various special use properties (ex. funeral home, proposed cemetery), developing commercial subdivisions, hotels, and a resort, among others. Client types serviced include: REITs, insurance companies, accountants, lenders, local municipalities, private corporations and law firms. Professional Background Mr. Fowler's experience includes two international companies (Colliers International in Indianapolis & CBRE in Grand Rapids), a regional firm (Terzo & Bologna, Inc.) and began his commercial real estate career with Access Valuation. Affiliations or Memberships Appraisal Institute, MAI Designation Great Lakes Chapter of the Appraisal Institute: ¢ Board of Directors (current) Region lll Representative (2018-2019) Hoosier State Chapter of the Appraisal Institute: e Finance Committee (2008-2013) * Nominating Committee (2008, 2015) Chair of the Associate Member Committee © (2010-2011) e LDAC (2009-2010) e Indianapolis Subchapter Chair (2008) o Newsletter Editor (2011-2013) Representative Projects Angie's List Campus, Indianapolis, IN (Multi-Building Office Campus) 17-Property Industrial Portfolio (Kojaian), Grand Rapids Area Custer Building, Grand Rapids, MI CBD (Office/Industrial Property) 5-Property Vision Collision Portfolio, Jackson and Lansing Areas Proposed FedEx, Portage, MI 5-Property, Planet Fitness Anchored Retail Centers (Southeast Michigan) Accelerating success.
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DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS BUREAU OF PROFESSIONAL LICENSING P.O. BOX 30670 LANSING, MI 48309 WILLIAM PATRICK FOWLER 7957 FINNAGEN DR MATTAWAN. MI 439071 GRETCHEN WHITHER STATE OF MICHIGAN = DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS BUREAU OF PROFESSIONAL LICENSING CERTIFIED GENERAL REAL ESTATE APPRAISER LICENSE WILLIAM PATRICK FOWLER LICENSE NO. EXPIRATION DATE 1205072943 07/3L/2025 23228100857 COMPLAINT INFORMATION: THE ISSUANCE OF THIS LICENSE SHOULD NOT BE CONSTRUED AS A WAIVER, DISMISSAL OR ACQUIESCENCE TO ANY COMPLAINTS OR VIOLATIONS PENDING AGAINST THE LICENSEE, ITS AGENTS OR EMPLOYEES. FUTURE CONTACTS: YOU SHOULD DIRECT INQUIRIES REGARDING THIS LICENSE OR ADDRESS CHANGES TO THE DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS BY EMAILING BPLHELP@MICHIGAN.GOV OR CALL (517) 241-0199 GOVERNOR STATE OF MICHIGAN DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS BUREAU OF PROFESSIONAL LICENSING CERTIFIED GENERAL REAL ESTATE APPRAISER LICENSE WILLIAM PATRICK FOWLER LICENSE NO. EXPIRATION DATE Le2ns07v2943 07¢/3L/2025 ‘THIS DOCUMENT 15 DULY ISSUED UNDER THE LAWS OF THE STATE OF MICHIGAN £32246100857