Property Tax Petition.pdf
519 Main Street LLC Petitioner Vs. City Of St Joseph Respondent · 26-001234-TT
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STATE OF MICHIGAN GRETCHEN WHITMER DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS MARLON I. BROWN, DPA GOVERNOR LANSING DIRECTOR 519 Main Street, LLC MICHIGAN TAX TRIBUNAL Petitioner(s) MTT Docket No. City of St. Joseph Respondent(s) ENTIRE TRIBUNAL PROPERTY TAX PETITION 1. Property Parcel No: 76-0340-0243-03-1 (If more than one parcel is at issue, attach a completed Multiple Parcel Petition Form addressing all other parcels at issue.) 2. The property identified above is X real ___ personal. 3. If more than one parcel of real property is under appeal, are the properties contiguous? __ Yes No. (If no, separate Petitions are required for each non- contiguous parcel.) 4, Are all of the parcels of personal property located on a parcel of real property under appeal? ___ Yes ___ No. (If no, separate Petitions are required for each parcel of personal property not located on a parcel of real property under appeal.) 5. If parcels of personal property are under appeal, when were the personal property statements filed by parcel number (attach additional page if necessary): 6. The property identified above is classified as 201 Commercial
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MTT Docket No. Page 2 of 4 10. 11. 12. 13. 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): N/A 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): N/A The property or properties at issue are located in Berrien County. The property or properties’ address is: 519 Main Street, St. Joseph, MI 49085 The assessment or assessments at issue were established by the (applicable local governmental unit): City of St. Joseph Petitioner's legal residence or principal office address is: 519 Main Street, St. Joseph, MI 49085 This appeal involves issues relating to the (check all that are applicable): X the property or properties’ true cash and taxable values the property or properties’ taxable value only If the property or properties’ taxable value is at issue, is there a dispute as to the value of an addition or loss? ___ Yes No uniformity of the property or properties’ assessment
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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): N/A 16. The values for the property identified above as established by Respondent's Board of Review are: Tax Year True Cash Value Assessed Value Taxable Value 2026 1,600,000 800,000 620,337 17. Petitioner contends that the values for the property identified above are: Tax Year True Cash Value State Equalized Value Taxable Value 2026 1,100,000 550,000 550,000 18. The values in dispute for the property identified above are: Tax Year True Cash Value State Equalized Value Taxable Value See Answers 16 & 17 above 19. Petitioner requests the following relief (attach additional page if necessary): Reduction of True Cash Value to $1,100,000 and SEV/Taxable Value to $550,000.
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MTT Docket No. Page 4 of 4 Signature of SEegone 1S/'s Authorized Representative or, if none, Petitioner: Printed Name of Petitioner's Authorized Representative or, if none, Petitioner: Barry Conybeare, authorized representative for 519 Main Street, LLC Email Address: barry@conybearelaw.com Mailing Address: 519 Main-Street, St. Joseph, MI-49085 +H HH Telephone Number: 269.983.0561 Date: May 21, 2026
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This form is issued under the authority of P.A. 206 of 1893, Sec. 211.24c and Sec. 211.34c, as amended. L-4400 CITY OF 8 Xt. Josep. 700 Broad Street - St. Joseph, MI 49085-1276 Ph: 269-983-4731 + Fx: 269-985-0347 Notice of Assessment, Taxable Valuation, and Property Classification THIS IS NOT A TAX BILL NAME AND ADDRESS OF OWNER OR PERSON NAMED ON ASSESSMENT ROLL: Parcel Code: 76-0340-0243-03-1 Property Address: 519 MAIN ST School District Code: 11020 PRINCIPAL RESIDENCE EXEMPTION . There WAS or WAS NOT a transfer of ownership on this property in : Was Not TEMP - RETURN SERVICE REQUESTED 2 sez % Exempt As "Homeowners Principal Residence": 0.00% (1 CELE 0 LE FY FE ER PETE LTT FE | BR PTT % Exempt As "Qualified Agricultural Property": 0.00% 519 MAIN ST LLC % Exempt As "MBT Industrial Personal’: 0.00% BRUCE C CONYBEARE pr f " 519 MAIN ST % Exempt As "MBT Commercial Personal": 0.00% SAINT JOSEPH MI 49085-1365 Exempt As "Qualified Forest Property": [Yes No Exempt As "Development Property": []Yes [X]No ACCORDING TO MCL 211.34c THIS PROPERTY IS CLASSIFIED AS: 201 COMMERCIAL PRIOR YEAR'S CLASSIFICATION: 201 COMMERCIAL: LEGAL DESCRIPTION: LOTS 243 & 244 & THE SWLY 25’ OF LOT 242 ORIGINAL PLAT OF CITY OF ST JOSEPH CURRENT CHANGE FROM PRIOR AMOUNT | 1ENTATIVE AMOUNT | PRIOR YEAR TO YEAR: 2025 YEAR: 2026 CURRENT YEAR 1. TAXABLE VALUE: 604,029 620,337 16,308 2. ASSESSED VALUE: 802,000 1,100,500 298,500 3. TENTATIVE EQUALIZATION FACTOR: 1.00000 4, STATE EQUALIZED VALUE (SEV): 802,000 1,100,500 298,500 5 6 . ASSESSOR CHANGE REASON: Market Adjustment The Inflation Rate Multiplier is: 1.027 Questions regarding the Notice of Assessment, Taxable Valuation, and Property Classification may be directed to the following: Contact Name Phone JACOB SUTTON (269) 983-1231 Email JSUTTON@SJCITY.COM March Board of Review Appeal Information: LOCATION: ST JOSEPH CITY HALL, 700 BROAD ST, ST JOSEPH MI 49085 HEARING DATES: MONDAY MARCH 9TH, 9:00 AM TO 3:00 PM & TUESDAY MARCH 10TH 3:00 PM TO 9:00 PM WRITTEN APPEALS ARE ACCEPTED
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Michigan Depariment of Treasury 618 (Rev, 12:25) Petition to Board of Review . L-4035 This form Is Issued under the authorlty of P.A, 206 of 1893, as amended. Flling Is voluntary; however, you may not appeal to the Michigan Tax Tribunal unless you first protest to the Board of Review, except when the properly Is classified as commerolal real, Industrial real, or developmental real. You may not appeal properly classification to the Slate Tax Commission unless you frst prolast to the Board of Review. TO BE COMPLETED BY OWNER OR OWNER’S AGENT Owner's Name (Please Print or Type) Petitioner's Kem (If Other than Owner, Please Print of Type) 519 Main St LLC. | Township or Clly County Year of Appeal St. Joseph Berrien 2026 The undersigned protests the assessed value and/or the tentative taxable value and/or the property classification and/or the qualified agricultural property exemption of the followIng described property: Property Identified (Parcel code required. Properly address and legal description aplional,) 519 Main St, St. Joseph, MI 49085 Protested item: Assessed Value l] Tentative [l Taxable Status O Classlfication (| Qualified Agricultural Taxable Value (exemption) Property Exemption PRO C : SSMERNT i mplete this section for a protest of assessed value, Including personal property forms, Assessed Value Owner's Estimate of True Cash Value (Market Value) $1,100,500 ) $950,000 Complete this section for a protest of Taxable Value, Reason: [7] Value of Losses [[] value of Additions [| Poverty Exemption [J Uncapping % BRO; 1B ER Complete this section for a request to change the classification. The Board of Review must make thelr decision regarding classification In accordance with Section 211.34 of the Michigan Complled Laws. The Board of Review shall not be influenced by the effect that a particular classification has on that property's status as a homeowner's principal residence or qualified agricultural property.) Classification of property on this year's assessment roll Classification should be (check one of the following): [J Agricutturat [7] industrial [] Timber Cutover 0 Utiity (Personal Property Only) [Jcommerciat ~~ - [J Residential [[] pevelopmentat BR Et = . = T rege di UU RAG ERO PERT AR s of local school operating tax for qualified agricultural proper- ly, the owner may appeal this action to the March Board of Review, THE BOARD OF REVIEW HAS NO AUTHORITY TO CONSIDER OR ACT UPON THE EXEMPTION FROM THE 18 SCHOOL OPERATING MILLS FOR HOMEOWNER'S PRINCIPAL RESIDENCE PROPERTIES.) Percent qualified agricultural exemption granted by assessor (Enter 0 If exemption Percent qualified agricultural exemption requested by owner (Enter 100 If ful] denled) exemption requested) Stale reason(s} for pi for qualified agri I Ihave recent professional opinions that place
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618, Page 2 FOR BOARD OF REVIEW USE ONLY INSTRUCTIONS: Incorporate a copy of this form and the assigned number In the Board of Review minutes Pelition Number MBeR 23 Parcel Code 1 A ASSESSEDIVALUE & Disposilion by Board of Review. The Board of lew must state the reason for its actlon below, J Denied 5 Assessed Value Changed From LC / 190 SDF Jto] Yao oo) ] Record of Vote — Board or lhree-momber committeg bf board Chalrperson: [Xves J No / % / Member; Inlilals Yes 1] No MG Member: Yes J No Initials Inlfafs PS PRESBNVTL be appealed by May 31, Ag Rsrtsid value Jowgnd To If you disagres with the decision of the Board of Review regarding tentalive assessed vi at PO Box 30232, Lansing, M| 48808, Commercial Real, Industrial Real, Devalopmental rieultural Real, Residential Real, Timber-Culover Real and Agricultural Personal Property may be appealed by July 31. The petition must be filed yaww.michlgan.goviaxtrb | form or a form approved by the Michigan Tax Tribunal, Michigan Tax Tribunal forms are avaliable at ys lg wviax!l puavLeng aa ala, you may appeal that decision by filing a pefition with the Michigan Tax Tribunal | Real, Commercial Personal, Industrial Personal and Utility Personal Properly may on a Michigan Tax Tribu TENTATIVE B LU; Ei Fi fu [7] Denled "Tentative Taxable Value Changed From Disposition y Board of Review, “The Board of Review must state the reason for its action below L207 239 o_ 203237 (See aftached L.-4035A) Record of Vole — Board or three-member committed bf board Chalrperson: val Yes [No Member: Initials Yes ] No WG Member: ll} Yes No Initials Initials Reason for Board Actlon Some If you disagree with the declsion of the Board of Review re; garding tentative taxable value, you may appeal that decision by filing a petition with the Michigan Tax Tribunal at Industrial Real, Developmental Real, Commercial Personal, Industrial Personal and Utility Personal Properly may be al, Timber-Cutover Real and Agtlcullural Personal Property may be appealed by July 31, The petition must be filed on e Michigan Tax Tribunal, Michigan Tax Tribunal forms ars avallable at michigan. axttib, TE Lo SIRIGAT] ‘Dispos on by [] Denled J Classification Changed From ard of Review, The Board of Review must state the reason for Ils action below, Record of Vote — Board or three-member committee of board Initlals Chalrperson: J Yes 0 No Member: [I Yes I] No Member: IN Yes OJ No Inifials Initials Reason for Board Action If you disagree with the declslon of the Board of Revi Lansing MI 48909, by few regarding classification, you may appeal by sending Form 2187 to the State Tax Commission at PO Box 30471, GREE eT G02 TURAL d Disposition! 6 Board of Revlew must state the reason for ts action below, [7] Exemption Request Denled [| Exemptlon percent modified from % to % Record of Vote — Board or three-member commilies of board Chalrperson: J Yes [I] No Member; [7] Yes J No i Member: [Il Yes J No
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CONDOR WN = REALTOR® Office Use Only MLS No. COMMERCIAL-INDUSTRIAL LISTING AGREEMENT = REALTOR® (EXCLUSIVE RIGHT TO SELL AND/OR LEASE) ed Listing Date: April 17, 2026 Expiration Date: Twelve Midnight the April 17, 2027 . This Agreement is made between Bruce Conybeare (the Owner) and Wright Properties (the “Brokerage firm”) herein after referred to as “Broker”. I/We, the undersigned Owner, hereby grant to the undersigned Broker the exclusive right to transact the property located at: 519 Main St, St Joseph, MI 49085 Number Street Name Post Office Address Zip Code located in the City of St Joseph 5 Berrien County, Michigan and legally described as: LOTS 243 & 244 & THE SWLY 25' OF LOT 242 ORIGINAL PLAT OF CITY OF ST JOSEPH and tax code(s): 11-76-0340-0243-03-1 In consideration of the mutual covenants herein and services to be performed, Broker is appointed as Owner's agent with irrevocable and exclusive right to transact the property by sale, exchange, option or lease, during the Term for the following price and terms. Where the word “Owner” appears, it shall also mean “Seller,” “Lessor,” “Landlord,” or “ Optionor”; “Buyer” shall also mean “Lessee,” “Tenant, ” or “Optionee”. 1. Price: Owner offers the Property for sale or exchange at a price of __One Million, One Hundred Forty-Nine Thousand dollars ($ 1,149,000.00 ) payable upon the following terms and conditions: cash, conventional financing, SBA financing Owner offers the Property for lease at the rate of: dollars (§ xxx ) per XXX payable upon the following terms and conditions: Owner offers the Property for sale, exchange, option or lease upon any other price and terms acceptable to Owner as evidenced by Owner's execution and delivery of a written Buy & Sell Agreement with respect to the Property. 2. Property Offered For Sale: In the case of a sale, the above price(s) includes the real estate together with all buildings and permanent improvements and fixtures attached thereto: except the following items to be EXCLUDED (if any): 3. Personal Property Offered For Sale: "i case of L591 he above price includes the following items of personal property to be INCLUDED in the sale: /" Aes tind 4. Brokerage Fee: Owner agrees to pay Broker a brokerage fee, which shall be determined and paid as follows: a. Sale: If the transaction is a sale, Owner shall pay Broker Five percent( _ 5.000 _%) of the gross sales price and $ xxx , collectively, the Brokerage fee, which shall be paid at the time of closing of the transaction when title to or an interest in the Property is transferred to Buyer. b. Exchange: If the transaction is an exchange, Owner shall pay Broker percent( __ xxx %) of the consideration received by Owner for the Property and § xxx , collectively, the Brokerage fee, which shall be paid at the time of closing of the transaction when title to or an interest in the Property is exchanged for other property. ¢. Lease: If the transaction is a lease, Owner shall pay Broker percent( __xxx _ %) of the total gross amount to be received by Owner during the term of the lease and $ xxx , collectively, the Brokerage fee, which shall be paid at the time Owner and a Lessee enter into a lease. If the lease includes one or more options to renew or extend the lease, Owner shall pay Broker a brokerage fee of percent( __ xxx %) of the total gross amount to be received by Owner during the renewal or extension term of the lease, which shall be paid at the time the extended lease term begins. If the lease includes one or more options to expand the leased premises, a
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10. 11. COMMERCIAL-INDUSTRIAL LISTING AGREEMENT e. Default: If Owner enters into a fully executed Agreement for sale, exchange, option or lease and Owner defaults under that Agreement, then a brokerage fee in the same amount as would be payable upon a closing or lease execution pursuant to this Agreement shall be due immediately upon such default. f. Ready, Willing and Able Buyer: If Broker procures a written offer from a Buyer who is ready, willing and financially able to consummate the proposed transaction concerning the Property according to the terms contained in this Agreement, and Owner refuses to accept the offer, Broker shall be immediately entitled to a brokerage fee in the same amount as would be payable upon a closing or lease execution pursuant to this Agreement. If the property or a substantial interest in the property is sold, exchanged, leased, or optioned pursuant to a contract which was entered into by the Owner during the term of th is listing agreement, then owner shall pay the Broker the brokerage fee agreed to in Paragraph 4. g. Suit By Owner: If Owner successfully prosecutes a suit against a Buyer who breached a purchase agreement, exchange agreement or lease concerning the Property and collects all or any part of the monetary damages proximately caused by such breach as a result of trial, compromise, settlement or otherwise, then, after first deducting Owner's reasonable attorney fees and court costs, Owner shall pay Broker an amount equal to one-half (1/2) of the funds received by Owner; but, the maximum amount Owner shall be obligated to pay to Broker shall not exceed the amount of Broker's brokerage fee. h. Protection. If Owner sells, exchanges, leases, options the Property to a party who was procured in whole or in part by the efforts of Broker, a cooperating Broker or Owner during the term of this Agreement, and if such transaction occurs within 30 days after the time this Agreement terminates, then Owner shall pay Broker a brokerage fee pursuant to the applicable section of Paragraph 4, however, this paragraph shall not apply if this Agreement terminates and the Property is listed exclusively with another licensed real estate broker. Cooperation. Broker is authorized to: (indicate choices by an [X]Yes[ JNo. a) Offer subagency to other Brokers and to offer a portion of the total brokerage fee due as compensation for acting as a subagent. Said portion of the agreed upon brokerage fee to be not more than 1 percent of the sales, option, lease or exchange transaction amount or § xxx Yes[ No. b.) Offer to other Brokers a portion of the total Brokerage fee due as compensation for producing an acceptable transaction while acting as a Buyer's/Lessee's Agent. Said portion of the agreed upon brokerage fee to be not morethan 2.500 percent of the sales, option, lease or exchange transaction amount or § xxx (X] Yes []No. c.) Offer to other Brokers a portion of the total brokerage fee due as compensation for producing an acceptable offer to purchase while acting as a Transaction Coordinator. Said portion of the agreed upon brokerage fee to be not more than __ 1.000 percent of the sales price or $ xxx Potential Conflict of Interest with Buyers. In the even the Broker procures a Buyer ‘who has contracted with the Broker as a Buyer's Agent, the Broker is authorized to act as a Disclosed Dual Agent pursuant to the Attached Dual Agency Consent Addendum and pursuant to a Dual Agency Agreement, which will be signed by Owner and Buyer at the time an offer to purchase is presented. [Jyes[x]No. MLS. Broker promises to use reasonable efforts to find a Buyer for the property upon the terms and conditions set forth herein. Broker is hereby authorized to file this listing with the MLS of the Real Estate Information Systems of Southwestern Michigan and provide them with the following: (1) a copy of this listing agreement; and (2) any changes to this listing agreement; and (3) after the closing, transaction information including transaction price/terms. Owner's Convenants: Owner agrees to cooperate with Broker and cooperating Brokers fully with respect to Broker's efforts to market and transact the Property. Owner agrees to refer to Broker all inquiries received relating to the sale, exchange, lease or option of the Property and to conduct all negotiations with prospective Buyers of the Property through Broker. Owner further agrees to furnish Broker any information concerning the Property as Broker may reasonably request from time to time including, but not limited to the following: Owner's Representation: The undersigned Owner (I) holds title to the Property in fee simple ; (II) is authorized and has the capacity to execute and deliver this Listing Agreement; and (III) has the ability to convey a good and marketable title by a general warranty deed and/or enter into a sale, exchange, option or lease. Signs/Media. Broker is hereby authorized to place a “For Sale/Lease” sign on the property and remove all other “For Sale/Lease” signs. Broker may also advertise the availability of the property through any other medium. Access. Owner agrees to provide Broker reasonable access to the buildings on the property for the purpose of exhibiting the property to prospective Buyers. Owner represents that adequate insurance will be kept in force to protect Owner in the
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COMMERCIAL-INDUSTRIAL LISTING AGREEMENT arises at any time concerning the condition of the Property, the structures, improvements permanently installed and affixed thereto, property defects, or health hazards, Owner agrees to indemnify, defend and hold Broker and cooperating Broker, and their agents from and against any and all claims which they may incur as a result of any dispute. Owner's indemnity obligations shall include any and all demands, liabilities, damages, losses, judgements, expenses, costs and attorney fees. 13. Authority To Obtain Property Information: If Owner has mortgaged the Property, Owner hereby authorizes the lending institution to divulge all mortgage information to Broker and to provide copies of the note and mortgage, if requested. Owner also authorizes Broker to obtain historic utility billing information from utility service providers. 14. Earnest Money: In the event that any Agreement for the sale, exchange, option or lease of the Property does not close due to the Buyer's default or refusal to complete the transaction as provided by the agreement, any forfeited earnest money deposit shall be used first to pay expenses incurred as a result of the Agreement, such as title work, termite inspection, document preparation, other inspections and such other expenses. The balance of the deposit may be retained by Broker as compensation for services rendered. (As agreed between the Owner and Broker in writing) Owner acknowledges that Broker cannot release the earnest money if there is a dispute between Owner and a Buyer regarding the earnest money. In any event all earnest money held by Broker shall be retained until Owner, Buyer and Broker mutually agree in writing as to its disposition or until the disposition is directed by a court order. 15. Additional Provisions: Owner and Broker acknowledge that: All persons signing below as Owner have read and understand this Agreement and have received a copy. This Agreement contains the entire agreement of the parties and cannot be changed except by their written consent. This Agreement is binding upon the Owner's heirs, administrators, executors, successors and assigns. Broker warrants the Broker holds a valid Michigan real estate license. Broker may refer Owner to other professionals, service providers or product vendors, including lenders, loan brokers, title insurers, escrow companies, inspectors, surveyors, engineers, consultants and environmental inspectors. Broker has no responsibility for the performance of any service provider. Owner is free to select providers other than those referred or recommended to Owner by Broker. f. If it becomes necessary for Broker to retain an attorney or initiate any legal proceedings in order to secure compliance with this Agreement, then, in addition to all other sums Broker may be entitled to recover, Broker shall also been titled to recover court costs, reasonable attorney fees, pre-judgment and post-judgment interest and all other costs incurred by Broker in connection therewith. g. The parties agree that this Listing Agreement, any amendment or modification of this Listing Agreement or any other written notice or communication in connection with this Listing Agreement may be delivered or given by sending or transmitting it by electronic mail or by fax. Any such communication shall be deemed delivered at the time it is sent or transmitted. The parties agree that the electronic signatures and initials shall be deemed to be valid and binding upon the parties as if the original signatures or initials were present in the documents in the hand writing of each party. All electronic mail shall be delivered to the Owner at the following address: barry@conybearelaw.com All electronic mail shall be delivered to the Broker at the following address: kerry@thewrightbroker.com Either party shall provide the other with notice of any change of electronic mail addresses. h. Owner and Broker agree that, as required by law, Owner and Broker shall not discriminate on the basis of race, color, national origin, religion, sex, marital status, familial status, age or disability of the parties. i. Broker is not and shall not be charged with the responsibility for the custody, management, care, maintenance, protection or repair of the Property nor for the protection or custody of any personal property located thereon, unless provided for in another written agreement. R j. Other: ff Sellers foslees prodvees bogie, Then broberoge feo 0 BS A 7 14 7 LR Accepted by Wright Properties REALTOR BROKER
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Commercial-Industrial Real Estate Seller's Representations equAL Haus SPRORTIAY REALTOR® Ow NOOO DWN = - aaa WN Oo FEY NO Ooh NN — ooo NN NN BAB WN nN [$3 NNN © ~N wW WN - O © ww wn Ww Ww [00 w [o> Property Address: 519 Main St, St Joseph, MI City of St Joseph , Michigan (Street) (City, Village, Township) To Seller's best knowledge and belief Seller represents and warrants to Buyer the following: 1. The Property is zoned and [7] ds) (is not) located in a Historic District; [] (is) (is not) located in a flood plain; x] (is) | | (is not) properly zoned for the existing use; (is) (is not) subject to a special use permit; (is) (is not) a non-conforming use; (is) (is not) a known encroachment. Is the property located in a preferential tax zone? | | Yes[X|No If yes, please elaborate: Seller certifies that there presently exists no defect or condition known to Seller which would further adversely affect or materially impair the fitness of the Property for its existing use EXCEPT: NIA 2. There are no actions, suits or proceedings pending or threatened against Seller or the Property, affecting any portion of the Property, bry jg ude tribunal, governmental agency or department, EXCEPT: 7 3. There are no pending or threatened condemnation actions or special assessment of any nature with respect to the Property nor has Seller received any notices of any such condemnation actions or special assessments being contemplated. 4. There are no foreclosures pending or threatened with respect to the Property nor has Seller received any notices of any foreclosure action being contemplated. 5. Seller has not received any notice in writing or otherwise from any governmental or municipal agency requiring the correction of any condition with respect to the Property or any party thereof, by reason of a violation or alleged violation of any applicable federal or state statute, ordinance, code or regulations, EXCEPT: w/A 6. a.The Property does not contain any material defects that would adversely affect the market value or existing use of the Property whether or not such defects could be discoverable by areas on able inspection of the Property. b. To the best of the Seller's knowledge, (1) the Property does not contain any hazardous chemical or material; (2) the Property does not contain any underground storage tanks which are or have been utilized to hold petroleum or other regulated substances; and (3) the Property is not in violation of any Federal or State laws congerning environmental issues. 7. Seller will not impose any deed restrictions upon the Buyer EXCEPT: __ N A 8. Seller certifies that the information in this statement is true and correct to the best of Seller's knowledge as of the date of Seller's signature. Seller / Zs 2 < < P2A Date 2s fd Bruce Conybeare tr
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PROPERTIES Date: March 6, 2026 To: Barry Conybeare RE: Broker Price Opinion for 519 Main St., St Joseph, MI 49085 Your property is a very valuable possession. | would like to thank you for your trust and confidence in my office to assist you through this process. My goal is to establish fair market value for your office building by using comparable sales that recently sold, along with an analysis of existing inventory for sale. To accomplish this, one must truly understand the conditions of the local and regional commercial real estate market. To help you with this process | have prepared a detailed broker price opinion. This document was crafted to ensure that you feel comfortable and confident with our valuation. Based on the analysis | believe the fair market value of your building is: $1,025,000.00 (one million twenty five thousand dollars) Again, this BPO is based on the current conditions of the market, and the actual condition of the building. The analysis also reflects a value that accounts for normal marketing time for this area. If | can be of further assistance, please don't hesitate to contact me. Regards, 4 9 Kerry M Wright 11, GRI/SRS/ABR Broker/Owner, Wright Properties 269.369.4640 (cell) This opinion or analysis is not an appraisal. It is intended only for the benefit of the addressee for the purpose of assisting the seller in deciding the listing, or sales price of the real property and not for any other purposes including but not limited to lending purposes. All information contained herein should be deemed reliable but not guaranteed. All representations are approximate and individual verification is recommended.
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ABOUT ME I'm a top performing, tech-savvy Real Estate Broker in Southwest Michigan, with a strong focus on the St Joseph, Benton Harbor, Stevensville real estate market. | have advanced working knowledge of the commercial real estate market. |am an aggressive negotiator who provides timely and useful market data to my clients. EXPERIENCE I have been a licensed realtor since 2005, having previously sold real estate in West Palm Beach, Florida and Chicago, Illinois. | have sold in excess of $500 million worth of real estate since 2005. | am a graduate of the realtor institute (GRI), Seller Representative Specialist (SRS), and an Accredited Buyers Agent (ABR) - a title held by only 2 percent of licensed realtors nationally. TECHNOLOGY My listings are on the cutting edge of the most current technology available. This technology goes for both local and regional with the support of third party endorsements. From my yard signs, to my facebook page, my Zillow profile, and inclusion in all major and minor search engines, YOUR PROPERTY WILL BE HIGHLY VISIBLE. EXPERTISE I specialize in the local commercial real estate market in Southwest Michigan. | have vast experience working throughout the regional real estate market. AWARDS/RECOGINITION I have been a diamond sales award winner in our local MLS every year | have been a member (17 years). | have recently been awarded the Lifetime Silver sales award by our local MLS. | have finished in the top 1% of all agents in Southwest Michigan Association of Realtors since 2010. | was named to the 40 under 40 business leaders in Southwest Michigan in 2018. CLIENTS FOR LIFE My business is built almost exclusively on referrals from past clients. I work VERY hard to ensure that | earn their trust before, during and after the transaction. PERSONAL My wife Erin and | raise our three daughters whose ages range in age from 12-16. | am the president of the Saint Joseph Public Schools board of education and have served since 2016. | have also recently served on the boards of Water Street Glassworks, and the First Church of God preschool. Real Estate sales is my FULL TIME passion and | am committed to delivering a great experience to you.
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Instant Equity Estimate of Value for 519 Main Street, SJ Income approach Market approach First floor 4500 square at $100/square $ 450,000 at $13/square $ 58,500 Basement 3000 finished square at $75/square $ 225,000 at $10/square $ 30,000 | Unfinished basement 1500 square at $30/square $ 45,000 Total income $ 88,500 NNN paid by tenant Management at 5% $ (4,500) Vacancy at 10% $ (8,800) Capital repairs at 3% $ (2,500) NOI $ 72,700 Cap Rate Value 8% $ 909,000 9% $ 808,000 10% $ 727,000 $ 720,000 The range of value for 519 Main Street is $720,000 to $808,000 Respectfully submitted by,
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Broker Opinion of Value 519 Main St,
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Table of Contents Table of Contents Executive Summary 3 Property Overview 4 Market Comps 5-6 Valuation 7 Fee Summary 8 About Bradley 9 Advisor Bios 10-12 . BRADLEY € © MPA INET Confidentiality & All materials and information received or derived from Bradley Company, LLC its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness , veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party's intended use or any and all other matters. Neither Bradley Company, LLC its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party's active conduct of its own due diligence to determine these and other matters of significance to such party. Bradley Company, LLC will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE. Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third-party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. Bradley Company, LLC makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. Bradley Company, LLC does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions, vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the
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Fao ). BRADLEY Opinion of Value Ji BRADLEY 519 Main St, Saint Joseph, MI 49085 Thank you for your interest in Bradley Company's services related to the potential sale your property. This proposal intends to provide you with information on our company and team, as well as our opinion on the best marketing strategy for your asset. We believe it is essential that the brokerage agents you select have comprehensive real estate knowledge and extensive management and transaction experience for the property type and location. You need professionals who understand the importance of branding and perception, and who know how to execute and maintain innovative marketing strategies. Bradley Company is confident that our qualifications are superior for the outlined assignment. We have assembled a team of top professionals to market this property for sale. The combined efforts of the Bradley Company team will enhance our consulting and brokerage services on the project by overseeing the development of all targeted lists of qualified prospects, negotiations, and closing. The team offers local and regional expertise combined with regional and national marketing to help you reach your occupancy goals. Only Bradley Company can provide this integrated brokerage team and level of local, regional, and national resources.
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Property Ove Property Description This 9,338 square foot well maintained office building situated on a 0.47 acre parcel within the established commercial corridor of downtown Saint Joseph. The property benefits from strong visibility along Main Street and sits within close proximity to retail, professional services, restaurants, etc. The site offers ample parking to accommodate many different uses. Strengths e Strong central location along busiest street in Saint Joseph, MI e Only .3 miles from the St. Joseph-Benton Harbor Amtrak Station e Both floorplans fit market need for smaller office demand e Ample surface parking for employees and clients . BRADLEY © MF (PAINE Property Details Address 519 Main St, Saint Joseph MI 49085 Parcel 11-76-0340-0243-03-1 County Berrien Lot Size 0.47 AC Building Size 9,338 SF Zoning Downtown District Utiities Municipal water and sewer Traffic Counts 17,066 VPD Weaknesses o Limited office user pool in marketplace may result in longer period on-market
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[i Market Comps 519 Main St., Saint Josef 3901 Stonegate Park Saint Joseph, MI 49085 Price $327,000 Building Size 2,046 SF Price / SF $159.82 Status On Market 2467 M-139 Saint Joseph, MI 49085 Price $475,000 MI 49085 1901 Niles Ave, Saint Joseph, MI 49085 Price $1,050,000 Building Size 11,200 SF Price / SF $93.75 Status On Market 2945 Niles Ave, Saint Joseph, MI 49085 3824 M-139, Saint Joseph, MI 49085 Price $850,000 Building Size 6,528 SF Price / SF $130.21 Status On Market 2717 S State St, Saint Joseph, MI 49085
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Market Comp 225 Vail Ct, 914 Main St, 3906 Stonegate Park, Saint Joseph, MI 49085 Saint Joseph, MI 49085 Saint Joseph, MI 49085 Price $360,000 Price $315,000 Price $500,000 Building Size 3,804 SF Building Size 3,830 SF Building Size 4,185 SF Price / SF $94.64 Price / SF $82.24 Price / SF $119.47 Status Closed Status Closed Status On Market
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. ). BRADLEY Valuation Summary BEADLE Property Valuation 519 Main St is a well-maintained, centrally located 9,338 two-story office building currently occupied by a law firm. St. Joseph is a smaller, but active market, and this size, configuration, and location of office is attractive to potential buyers. Our valuation takes into consideration market comparables, general economic factors, local conditions, and demand for this sort of asset. We would expect this property to transact in the $100 to $105 per square foot range. At 9,338 square feet of improved office space this translates to a value range of $933,800 to $980,490. We would recommend taking the property to market at $115 per square foot, or $1,073,870.
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. BRADLEY € © [MIRA INE? Fee Summary Bradley Company will undertake this assignment on the basis of an Exclusive Engagement. We will submit a proposed draft Exclusive Sale Listing upon Bradley Company's selection. Description Exclusive listing for sale. Marketing Materials The retainer fee will be waived. Marketing Exposure Anticipated sale within 6-12 months of assignment. Commission Fees Sales commission shall be 6% of total sale price in the event that only Bradley Company listing team is involved in the transaction. In the event there is a co-operating broker there than the listing team involved, commission will be increased by 1%. Listing Terms The listing shall run for a term of one (1) year. *This proposal with its pricing is valid for thirty (30) days from the date provided to the owner.
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About Bradley Your trusted, full-service commercial real estate advisors. At Bradley Company, we help clients make confident commercial real estate decisions through personalized service, deep local expertise, and strategic insight. Whether you're buying, selling, leasing, or managing a property, we act with your best interests in mind to deliver results that align with your goals and move your Our Numbers 270+ 3.700+ $415 Million 200+ Professionals on staff Multi-Family in Brokerage Commercial Properties ready to help you Units Managed Transactions in 2024 & Facilities Managed Our Reach Our experienced professionals across the Midwest are notably recognized with designations including SIOR, CCIM, MCR, CPM, and RPA. Our local expertise in all sectors of the market coupled with
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Advisor
Biography
eyco.com
Office
112 W. Jefferson Blv
uite 300
South Bend, IN 46601
574.
(6{0[0]0]
Education
Bachelor o
ence, Communications
Purdue University
Affiliations & Memberships
Licensed Real Estate Broker in
the State of Indiana
ICBR
| CREA
Senior Vice President
Greg Pink joined Bradley Company in 1999. He serves as a Vice President. Previously
he worked for Burkhart Advertising as a subcontracting coordinator for the United
Airlines Worldwide Maintenance Facility.
Greg is a licensed real estate salesperson in the State of Indiana. His primary
responsibility is as an Industrial/Land Specialist for all of St. Joseph, Marshall and
Elkhart counties. He has additionally served his clients in the past on investment
sale, industrial and office building disposition and landlord and tenant representation
assignments.
+
#1 Producing Broker, 2010 & 2024
+
Bradley Company “Persistence & Patience” Award for 2005, an award to recognize
brokers who have demonstrated diligence, persistence, professionalism and
patience in their transactions throughout the year
+
Spirit of Habitat Award, Habitat for Humanity of St. Joseph County, 2025
+
AM General
+
Great Lakes Capital Development
+
Towne Air Freight
+
CEVA
+
Manufacturing Technology, Inc.
+
Federal Mogul
+
Hilti
+ McCormick & Company, Inc.
+
AffiniaPage 25
Advisor Biography Contact jjessen@bradleyco.com Office - 574.968.9270 Cell - 574.210.8773 Office 112 W. Jefferson Blvd., Suite 300 South Bend, IN 46601 5 1.6000 Education University of Notre Dame Ba or of Business Administration Indiana University Master of Business Administration Specialties & Services Office Investment Retail \ | 5 Managing Director, Brokerage - North Central Indiana In his role, John primarily focuses on office, retail, and investment sale lines of business. John also serves as Director for Bradley Capital Markets, bringing with him nine years of experience in investment banking and corporate finance. Prior to joining Bradley Company, John received his Bachelor of Business Administration from the University of Notre Dame. Upon graduation, he spent four years in investment banking, working for Raymond James & Associates in Chicago, IL. At Raymond James, John performed a wide variety of services, including mergers & acquisitions, debt/equity offerings, and valuation and fairness opinions. John then went on to earn his Masters of Business Administration from Indiana University’s Kelley School of Business, focusing on finance and marketing. Upon graduation, John then went on to spend two and a half years working in a wide variety of financial planning and analysis roles at Whirlpool Corporation in Benton Harbor, MI. John lives in Granger, IN with his wife and two sons. In his free time, John enjoys cycling, boating, and spending time with his family. On Saturdays in the fall you will find him cheering on his beloved Fighting Irish football team. 1CsC Indiana WorkOne Board Member ICBR Fischoff Board Member DTSB Board Member South Bend Awesome Fund Michiana Forty Under 40
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Advisor Biography Contact ghudak@bradleyco.com ffice - 574.855.5706 Cell - 574.993.0669 (0) ef} 112 Jefferson Blvd., Suite 300 South Bend, IN 46601 574.237.6000 Education Bachelors in Business Administration, Western Michigan University Specialties & Services Office Investment Retail \ \ 4 Senior Vice President Gage Hudak, currently Senior Vice President at Bradley Company, brings over 10 years of experience and dedication to the real estate industry. His focus centers on the office, retail, and investment markets of Northern Indiana and Southwest Michigan, where he has earned recognition for his achievements, including the 2018 Bradley Company Rookie Broker of the Year and consistent placements as a Top 10 Broker, including most transactions in 2020, 2021, 2022, and 2023. Gage completed his Bachelor's Degree in Business Administration, majoring in business management with a focus on finance at Western Michigan University. Additionally, he has earned the esteemed Certified Commercial Investment Member (CCIM) designation, highlighting his advanced proficiency in financial and market analysis within the commercial real estate sector. Prior to his brokerage role, Gage gained valuable insights working as a Market Research Analyst, contributing to a deeper understanding of economic conditions and market trends in the real estate landscape. Beyond his professional commitments, Gage is passionate about community service and leadership. He serves on the advisory council of Big Brothers Big Sisters and is a dedicated board member of both the Edwardsburg Sports Complex and Downtown South Bend, Inc., showcasing his commitment to community growth and development. In his free time, Gage finds happiness in creating meaningful memories with his family, particularly his two children. An avid lover of the outdoors, he often engages in lake activities, providing opportunities for his family to share in the joys
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Mailing Address 7240 West H Avenue Kalamazoo, Michigan 49009 Appraiser Contact Information (269) 808-0332 russkoshar@gmail.com Restricted Appraisal Report CLIENT: Attorney Barry Conybeare 519 Main Street St. Joseph, MI 49085 FILE NUMBER: 26-013 SUBJECT ADDRESS: 519 Main Street St. Joseph, MI 49085 EFFECTIVE DATE: February 18, 2026 DATE OF REPORT: February 26, 2026 APPRAISER: Russel K. Koshar Certified General Appraiser
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7240 West H Avenue, Kalamazoo, Michigan 49009 (269) 808-0332 February 26, 2026 Attorney Barry Conybeare 519 Main Street St. Joseph, MI 49085 RE: 519 Main Street St. Joseph, MI 49085 Dear Attorney Conybeare: In response to your appraisal request of February 11, 2026, I have formulated an opinion of the as-is fee-simple market value of the above referenced property. The value estimate in this report applies to the dates as noted. Any future review of this appraisal must consider the facts, market data, and economic climate that existed on the effective date of value as stated in the report. This report was prepared beginning at the time of engagement through the date of this appraisal. The analysis that follows contains pertinent data on which the estimate of market value is based. Given the scope of the assignment, no extraordinary assumption nor hypothetical assumptions are involved. The reader is encouraged to review the report in its entirety. Based on the intended user and use of this report, it has been prepared in accordance with the requirements of the Restricted Appraisal Report option of the Uniform Standards of Professional Appraisal Practice. Respectfully submitted, Russel K. Koshar Certified General Appraiser License Number: 1205071087 Expiration: 07/31/2027
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26-013 519 Main Street, St. Joseph, MI 49085 EXECUTIVE SUMMARY Appraisal File Number: 26-013 Property Address: 519 Main Street St. Joseph, MI 49085 Tax Identification Numbers: 11-76-0340-0243-03-1 Interest Appraised: Fee Simple Estate Appraisal Premise: As-Is Market Value Improvement Size: 4,669 sf (above grade) 3,000 sf (below grade) 7,669 sf (GBA) Site Size: 0.476 acre Land-to-building ratio: 4.44:1 (above grade) Zoning: Commercial Highest and Best Use Owner-Occupied Professional Office Date of Value February 18, 2026 Date of Property Viewing February 18, 2026 Date of Report February 26, 2026 Opinion of Value: $1,100,000 Exposure Time: 4-6 months Note: The opinion of value stated on this page is only valid when accompanied by the attached appraisal report in its entirety.
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26-013 519 Main Street, St. Joseph, MI 49085 TABLE OF CONTENTS STATEMENT OF ASSUMPTIONS & LIMITING CONDITIONS ..............................................1 SCOPE OF THE APPRAISAL .......................................................................................................3 SUMMARY OF PERTINENT FACTS...........................................................................................4 Purpose of the Appraisal ......................................................................................................4 Definition of Market Value ..................................................................................................4 Definition of Fee Simple Estate ...........................................................................................5 Intended User and Use of the Report ...................................................................................5 Interest Appraised ................................................................................................................5 Effective Date of Value .......................................................................................................5 Date of Property Viewing ....................................................................................................5 Date of Report ......................................................................................................................5 Property Identification .........................................................................................................6 Personal Property .................................................................................................................6 Sales History of the Subject Property ..................................................................................6 Zoning ..................................................................................................................................7 Zoning Map ..........................................................................................................................7 Flood Hazard Discussion .....................................................................................................8 Flood Hazard Map ...............................................................................................................8 Assessed Values and Taxation .............................................................................................9 Competency .......................................................................................................................10 PROPERTY DESCRIPTION: Site Description ..................................................................................................................11 Site Survey .........................................................................................................................12 Geographic Information System Mapping w/Aerial Overview .........................................13 Improvement Description ..................................................................................................14 Floor Plans .........................................................................................................................15 Views of Subject Property .................................................................................................16 HIGHEST AND BEST USE .........................................................................................................18
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26-013 519 Main Street, St. Joseph, MI 49085 VALUATION METHODOLOGY ................................................................................................21 SALES COMPARISON APPROACH ..........................................................................................21 INCOME CAPITALIZATION APPROACH ...............................................................................28 RECONCILIATION ......................................................................................................................33 ESTIMATED EXPOSURE TIME ................................................................................................34 CERTIFICATION .........................................................................................................................35 APPRAISAL LICENSE ................................................................................................................36 QUALIFICATIONS ......................................................................................................................37 ADDENDUM ................................................................................................................................40 A) Engagement Agreement
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1 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 STATEMENT OF ASSUMPTIONS & LIMITING CONDITIONS The certification of the appraiser appearing in this appraisal report is subject to the following assumptions and limiting conditions and to such other specific and limiting conditions as are set forth in this report. 1. No title investigation has been made, and no warranty of title is implied. Title to the property is assumed to be good and marketable unless otherwise stated. Legal description of the property is limited to that provided by the client. Utilization of the land and improvements, if any, is assumed to be within the property boundaries, there being no encroachment or trespass unless noted in the appraisal report. The appraiser has not made a survey of the property, nor determined the exact acreage for the whole or any part. 2. Possession of this report or any copy thereof does not carry with it the right of publication, nor may it be used for other than its intended use. The physical report remains the property of the appraiser for the use of the client-the fee being for the analytical services only. The appraisal report shall not be given to third parties without the prior written consent of the signatories of this appraisal report. Neither all nor any part of this appraisal report shall be disseminated to the public without the prior written consent of the appraiser and client. 3. The Appraiser is not required to give testimony or appear in court because of having made the appraisal with reference to the property in question unless arrangements have been previously made and only when the appraiser's standard per diem fee and travel costs are paid prior to the appearance. 4. Information furnished by others is believed to be reliable. However, no responsibility is assumed for accuracy of the information furnished by work of others, the client, his designee, or public records. An impractical and uneconomic expenditure of time would be required to furnish unimpeachable verification in all instances, particularly as to engineering and market related information. It is suggested that the client consider independent verification as a prerequisite to any transaction involving a sale, lease, or other significant commitment of funds for the subject property. The sketches and maps in this report are included to assist the reader in visualizing the property for illustrative purposes only. 5. The property and its current use are assumed to be in full compliance with all applicable Federal, State and Local Regulations and Laws.
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2 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 6. The description and evaluation of the property is based on visual inspection only. It is assumed that there is no hidden or unapparent condition of the property, subsoil, structures, or presence of toxic materials that would affect value. The appraiser did not make any engineering or environmental test, audits, or studies, and did not have knowledge of the results of any such investigations unless stated so in the appraisal report. All mechanical components are assumed to be in operating condition unless otherwise stated. 7. The appraisal value is subject to change over time and if there is a change in the known physical and legal characteristics of the property, the appraiser reserves the right to alter statements, analyses, conclusions, and value estimates if the facts are pertinent to the appraisal process become known after the time of report preparation. 8. The liability of the appraiser, his employer and associated staff is limited to the client and the fee collected. Further, the appraiser assumes no responsibility for any costs incurred to discover or correct any deficiencies of any type present in the property. 9. On all appraisals, subject to satisfactory completion, repairs, or alterations, the appraisal report and value conclusions are contingent upon completion of the improvements in a workmanlike manner. The survey, legal description, plans and specifications, when finalized will conform to the preliminary information provided the Appraiser as the basis of this report. 10. The Americans with Disabilities Act (ADA) became effective January 26, 1992. We have not made a specific compliance survey and analysis of this property to determine whether it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property together with a detailed analysis of the requirements of the ADA could reveal that the property is not in compliance with one or more of the requirements of the act. If so, this fact could have a negative effect upon the value of this property. Since we have no direct evidence relating to this issue, we did not consider possible noncompliance with the requirements of ADA in estimating the value of the property. 11. Square footage is not guaranteed by the appraiser. The client or any user of this appraisal report acknowledges and agrees that any statements regarding the square footage of the property and/or improvements are approximations only and are not representations or warranties thereof and are not intended to be relied upon by the client or users of this appraisal report. If square footage is a material factor to the client or users of the appraisal report, said party shall determine the square footage by its own independent inspection.
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3 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 SCOPE OF THE APPRAISAL The intent of this report is to provide an appraisal report prepared in accordance with the requirements of the Restricted Appraisal Report option of the Uniform Standards of Professional Appraisal Practice (USPAP), as promulgated by the Appraisal Standards Board of the Appraisal Foundation. No special actions were required to comply with the USPAP competency provision. The analysis is based on the following elements: • A physical viewing of the subject property and neighborhood. • Field verification of building area (when applicable). • A review of economic indicators that demonstrate market conditions, attitudes, and trends for property in this location. • A review of various data sources in search of comparable market information relating to this type of property. • Confirmation of relevant data by buyers, sellers, brokers, or other parties associated with the market transaction. • Analysis of pertinent information. • Estimates of value based on appropriate methodology • Reconciliation and conclusion of the required values. • The sales comparison and income capitalization approaches are used to value the as-is fee- simple market value of the subject real property. • I, Russel K. Koshar, personally viewed the subject property and authored this report • Market data sources include Southwest Michigan Regional Information Center (SWMRIC), Commercial Alliance of Realtors of West Michigan (CARWM), CoStar, and published statistics as noted in the report. Disclaimer The reader is cautioned and reminded that the value conclusion presented in this appraisal report applies only as of the effective date indicated. The appraiser makes no representation as to the effect on the appraised property of any unforeseen event, after the effective date of the appraisal.
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4 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 SUMMARY OF PERTINENT FACTS Purpose of the Appraisal The purpose of this appraisal is to provide the best estimate of the as-is fee-simple market value of the subject real property. Market value is defined by the federal financial institution's regulatory agencies as follows: Definition of Market Value Market Value is defined as "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 interest; 3. A reasonable 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." Source: Office of the Comptroller of Currency, 12 CFR, Part 34
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5 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 Definition of Fee Simple Estate The value developed in the appraisal is based on fee simple ownership of the property, which is defined as, “...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.” The appraisal assumes the property has a marketable title, and there are no unusual liens, restrictions, or encumbrances.1 Intended Users and Use of the Report The appraisal report has been prepared at the request and for the EXCLUSIVE use of Attorney Barry Conybeare. The appraisal function is to estimate the market value of the subject property for internal asset analysis and possible sale under the specified appraisal premises: The “As Is” Premise: An estimate of the market value of the property in its present condition subject to the market conditions prevalent as of the effective date of the appraisal, without hypothetical conditions, assumptions or qualifications concerning the physical or legal aspects of the property. If the property has not achieved stabilized occupancy or sellout as of the date of the appraisal, all applicable deductions and discounts need to be applied to estimate the “As-Is” value.1 Interest Appraised Fee Simple Estate Effective Date of Value February 18, 2026 Date of Property Viewing February 18, 2026 Date of Report February 26, 2026 1Source: The dictionary of real estate appraisal. 5th ed. Chicago: Appraisal Institute, 2018.
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6 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 Property Identification Address: 519 Main Street, St. Jsoeph, MI 49085 Parcel Number: 11-76-0340-0243-03-1 Legal Description: LOTS 243 & 244 & THE SWLY 25’ OF LOTS 242 ORIGINAL PLAT OF CITY OF ST JOSEPH The legal description is taken from the local municipal assessment records and set forth for the purpose of distinguishing the general location of the site. No liability is assumed for accuracy, and this description should not be used in matters relating to the property without further verification on the part of the user. If for any reason this description is found to be erroneous, the appraiser reserves the right to revise the estimation of value accordingly. Personal Property No personal property is included in this valuation. Sales History of the Subject Property Title is held in the name of 519 Main Street, LLC and has been in excess of three years. The property currently does not appear to be listed for sale in the local multiple listing system.
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7 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 Zoning The appraised property is zoned C0-A, Commercial Office District. The purpose of this zoning is to promote development for commercial, office, administrative, and institutional uses which by their characteristics have a low turnover of vehicular movement and as such enhance the proper movement of traffic along major arterial roads. Institutional uses allowed in this district should be centrally located in relation to the population they will serve. Related commercial service activities and certain basic personal services are also permitted. Limited residential uses are also permitted. The subject property's current improvements and use are allowed under this zoning. Zoning Map
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8 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 Flood Hazard Area Discussion According to information from the Federal Emergency Management Agency (FEMA) the appraised property is in a Zone “X”. This is defined as an area of minimal flood hazard that is outside the Special Flood Hazard Area (SFHA). This information is from the National Flood Insurance Program, flood insurance rate map number 26021C0101D with an effective date of April 25, 2024. Flood Hazard Map
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9 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 Assessed Values and Taxation The assessor of a local unit of government must, by the first week of March of each year, prepare an assessment that represents 50% of the true cash value of the property as of the prior December 31. The assessment is then subject to review by the Board of Review. The Equalization Department for the individual counties then studies the assessments to determine whether the assessments, as prepared by the assessor and reviewed, are at the legislated 50% level. If not, the county can adjust the assessment to the proper level by the use of an equalization factor. The State Tax Commission then analyzes the work of the county equalization department to determine whether the county totals represent proper levels of assessment. After the three levels of equalization are completed, the assessor’s assessments are converted to State Equalized Valuation. The SEV theoretically represents 50% of the “true cash value” of the property. In 1995, the State of Michigan adopted Proposal A. Under Proposal A, unless a property sells, annual assessment increases are limited to 5% or the inflation rate, whichever is less, creating a taxable value. If the property sells, the taxable value can then be increased to reflect the current assessed value. Property taxes are computed by multiplying the local millage rate by the taxable value. The taxable value has no relationship to the market value unless it has recently been increased to the SEV. The 2026 SEV for the subject property is $1,100,500 with a taxable value of $620,337. Properties in the state of Michigan are taxed on the basis of their SEV, which theoretically represents 50% of the true cash value of the subject property. All tax information was acquired from local municipal assessment records. The property’s SEV is excessive and beyond any indications of market value. As of the date of this report, the local municipality showed no delinquent taxes. According to assessment records, the appraised property was assessed in 2025 at a non- homesteaded millage rate of 59.671900. The total annual tax amount billed for the year was $36,392.27.
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10 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 Competency Based on my understanding of the assignment, I consider myself competent to perform the appraisal because: ∙ I have sufficient knowledge of, and experience in, this type of property. ∙ I have taken all the necessary and appropriate steps in order to complete the assignment competently. ∙ I have worked within the subject's market and have adequate knowledge and experience that would not prohibit me from completing this assignment in a professional and competent manner, or in a way that would allow a bias or misleading opinion of value to be rendered.
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11 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 SUBJECT PROPERTY DESCRIPTION Site Description The appraised property is 0.476-acre rectangularly-shaped parcel. It has road frontage along Main Street of 158.13 feet and frontage along Market Street of 131.98 feet. The site is at road grade, level, and appears to have adequate drainage. The property is serviced by all standard utilities. No adverse locational conditions were noted at the time of visiting the site. Site dimensions were obtained from a site survey provided by the assessor’s office. The property is accessed directly from both roadways.
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12 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 Site Survey
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13 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 Geographic Information System Map w/ Aerial Overview
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14 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 Improvement Description The appraised property is improved with a single-story professional office building with a walkout lower level. The main floor is 4,669 square feet and the lower level has approximately 3,000 square feet of finished space. The balance of the lower level is storage and mechanicals. The improvement was built in 1995 and is of frame construction with a flat roof covered with a rubberized membrane, a brick veneered and glass exterior, with a full poured-wall walkout basement. At the main entrance, southeast side of the facility, is a 319 square foot canopy with entrance ramp. The interior has a glassed vestibule entrance on the southeast side of the facility that leads to a reception area with secretarial counter and waiting area. Behind the reception area is a central hallway that runs the length of the building flanked by offices on each side. The main level has six private offices, two conference rooms, a kitchenette, three 2-fixture restrooms, and an area with modular units. Towards the northeast end of the building is an open staircase that leads to the office space in the lower level. A secondary stairwell is at the opposite end of the facility. An elevator also services the facility. Finishes include acoustic ceiling tile on metal grid systems throughout most of the main floor. The reception area has a trayed ceiling. Walls are painted gypsum board. The floors are covered with a mix of commercial-grade carpeting and hard-surface floorings. The lower level has five private offices, a modular office area, two 2-fixture restrooms, a library/resource room, a kitchen with eating area, storage, and mechanical areas. Finishes are similar to the main level; though slightly less formal. The storage and mechanical areas have drywalled ceilings, and exposed concrete walls and floors. Heat is provided via gas-fired forced air with central air conditioning. The entire facility is equipped with a fire suppression system and a back-up generator. All standard utilities service the property. Interior and exterior surfaces are considered of average condition for the age of the facility. Additional site improvements include bituminous paved parking for 25-30 vehicles, concrete curbs and walkways, exterior lighting, fencing, and professional landscaping. The northeast end of the facility has a walkout lower level with small courtyard finished with concrete pavers and professional landscaping.
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15 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 Floor Plans
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16 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 Views of Subject Property (Exterior) View from north View from west View from south Northeast end with courtyard below Main Street looking northeast Main Street looking southwest
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17 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 Views of Subject Property (Interior) Reception area Conference room Main-level office finish Main-level central hallway Open stairwell Lower-level office finish
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18 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 HIGHEST AND BEST USE In real estate, the principle of highest and best use is simply urban space (land and/or improvements) economics. Economics is the study of utilization of scarce resources among competing alternative uses and desires to maximize human satisfactions. These use decisions have two major considerations - type of use and amount of density of use. The Appraisal Institute defines highest and best use as: The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. Highest and best use analysis involves analyzing the subject site according to the following four criteria: • Physically Possible: This criterion pertains to physical characteristics impacting the development potential of the site such as size, shape, topography, availability of utilities and soil conditions. The lack or impairment of any of these factors may make certain types of development impossible or impractical. • Legally Permissible: The second criterion relates principally to zoning restrictions. A community’s development policies or environmental goals may encourage certain uses and preclude others. Other factors impacting a site’s legal permissibility include private restrictions. • Financially Feasible: This criterion measures which of the physically possible and legally permissible uses are likely to be profitable. A full feasibility study on all potential uses is generally beyond the scope of an appraisal. Thus, reliance is placedupon the intent of the zoning, neighboring uses, market supply and demand indications, and evidence of new development. • Maximally Productive: The fourth test is to assess which of the financially feasible uses produces the greatest net return to the land. For example, if apartment use is considered financially feasible, a determination is made as to the density, quality and type of apartment that will be profitable to construct.
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19 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 The highest and best use analysis presented in this appraisal is not intended to be an exhaustive analysis of every possible use for the subject. Rather, it is intended to provide sufficient analysis of the most likely and most reasonable use of the site. The value that is inferred in this definition is the value stated in the “Interest Appraised;” generally Market Value. Highest and Best Use analysis pertains to the use that should be made of a property as improved and concludes suggesting the highest and best improvement to site as-though vacant. Land value is viewed as the driving force of property values in a specific market being a function of the improvement to the land. Thus, the Highest and Best Use of a property is that physically possible, legally permissible, and financially feasible use which results in the highest return to the land. Opinion of Highest and Best Use The appraised property is 0.476 acre and improved with an owner-occupied 7,669 square foot (4,669 square foot above grade) owner-occupied professional office building. The site is zoned CO-A, Commercial Office District which allows for the subject’s current improvements and use. The improvement is both physically possible and legally permissible. The sales comparison approach demonstrates sufficient demand for similar character properties in the local market suggesting financing feasibility as improved. The land-to-building ratio is 4.44:1 (based on above grade square footage). The site is maximally improved. It is my opinion that the highest and best use of the subject property as improved is as an owner- occupied professional office building. The highest and best use of the subject site as-though vacant would be development of the site in conformance with current zoning, for a use that could benefit from the exposure afforded the property along Main Street and close proximity to the central business district. .
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20 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 VALUATION METHODOLOGY Three approaches to value form the foundation of current appraisal theory. These methods are the cost, sales comparison, and income approaches. The cost approach is an analysis based on the proposition that an informed purchaser would pay no more than the cost of producing a substitute property with the same utility as the Subject property. In this approach, a market analysis is first done to estimate the value of the underlying land as if vacant. Replacement costs are estimated by use of the Marshall Valuation Service; a nationally recognized cost-estimating guide that is considered very reliable. The cost approach is most applicable when the property being appraised is of a proposed nature or of relatively new construction, which represents the highest and best use of the land. This approach is also very useful when unique or specialized improvements are involved for which comparable sale data is scarce or non-existent. The cost approach becomes less appropriate when older properties are appraised because of the various forms of depreciation that have accrued over the years. The sales comparison approach utilizes actual market transactions within the general market area of the subject for comparison to the subject property. The sales are analyzed, and through an appropriate adjustment process, develop indications of value. The principle of substitution is the basis of this approach, and it implies that a typical purchaser would investigate recent sales and current offerings before purchasing the subject property. The reliability of this approach is dependent upon the marketability of sales of properties possessing similar physical, locational and economic characteristics as the subject property as of the effective date of the appraisal. The income approach is the most widely used approach undertaken when appraisal an income- producing property. The anticipated present and future income potential of the property is evaluated and capitalized through an appropriate process or processes. This approach is reliant upon the quantity and quality of the market data to estimate accurately the potential income and resulting net income of the property. At the conclusion of the valuation process, the indications of value are correlated and reconciled into a final estimate or opinion of value. At the conclusion of the valuation process, the indications of value are correlated and reconciled into a final estimate or opinion of value. The sales comparison and income capitalization approaches to value are developed and both are considered appropriate methodology for estimating value in the subject property. The cost approach is not developed given the age of the improvement and the difficulty in accurately estimating depreciation.
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21 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 SALES COMPARISON APPROACH The premise of the sales comparison approach is a prudent investor will pay no more for the subject property than the cost of acquiring an equally desirable substitute in the open marketplace (the Principle of Substitution). As the principle of substitution is the basis of valuation in income- producing properties, it directly applies to the sales comparison approach. This approach bases the value of the subject property on the prices at which other substitute properties can be acquired or have been purchased under similar market conditions. That is, a prudent investor/purchaser would pay no more for the subject property than an amount at which comparable properties have been sold. To compare sold properties with the appraisal subject, a relative comparison analysis is utilized. This method utilizes sales of comparable properties, adjusted for differences, to indicate a value for the subject. Valuation is typically accomplished using physical units of comparison such as price per square foot, price per unit, price per floor, etc., or economic units of comparison such as gross rent multiplier. Adjustments are applied to the physical units of comparison derived from the comparable sale. The unit of comparison chosen for the subject is then used to yield a total value. An attempt was made to locate recent sales of similar character professional office buildings in the local market. Given the limited number of comparable local sales, the search is expanded to the regional West Michigan area. Pertinent information regarding these comparables is summarized on the following pages.
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22 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 Comparable Sale 1 535 Cascade West Pkwy SE, Grand Rapids, MI 49546 - $1,360,000 Source: 2026 CoStar Group - Licensed to Koshar Commercial Appraisal Services, LLC Sale Date: July 2025 Sale Price: $1,360,000 Building Size: 8,600 SF Unit Value: $158.14/SF Land-to-building ratio: 6.08:1 Located in the southeast Grand Rapids sub-market of Lowell/Ada, this improvement is a professional building within a business park adjacent to the Cascade Hills Country Club and Golf Course. This is a single-story professional office building block construction with a flat rubberized roof, brick-veneered exterior, and a partial basement. The improvement was built in 1980 and at time of sale was considered average condition for its age. Information was obtained from CoStar and confirmed with assessment records.
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23 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 Comparable Sale 2 1710 Tiles Court, Grand Haven MI 49417- $1,320,000 Source: Southwest Michigan Regional Information Center (MLS) Sale Date: April 2025 Sale Price: $1,320,000 Building Size: 10,320 SF Unit Value: $127.91/SF Land-to-building ratio: 27.35:1 This property is on a wooded parcel in an industrial park on the east side of Grand Haven. It is a professional office building constructed of concrete block with a pitched roof covered with architectural shingles, a block and stucco exterior, and a slab foundation. The improvement has no exposure from the road, and the site has surplus land. At time of sale, this facility was below- average condition and needed updating. Information was obtained from the listing agent and confirmed with assessment records.
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24 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 Comparable Sale 3 3906 Stonegate Park, St. Joseph, MI 49085 - $850,000 Source: 2025 CoStar Group - Licensed to Koshar Commercial Appraisal Services, LLC Sale Date: January 2025 Sale Price: $850,000 Building Size: 6,100 SF Unit Value: $139.34/SF Land-to-building ratio: 7.43:1 This comparable is in the Stonegate office park in Royalton Township. It is a two unit with the owner occupying one unit. It is of frame construction with pitched roof covered with architectural shingles, a brick veneered exterior, and a slab foundation. Finishes are medical in nature. Condition of the property at time of sale was considered average. Information was obtained from CoStar and confirmed with assessment records.
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25 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 Comparable Sale 4 6850 Stadium Drive, Kalamazoo, MI 49009 - $950,000 Source: Southwest Michigan Regional Information Center (MLS) Sale Date: November 2024 Sale Price: $950,000 Building Size: 6,787 SF Unit Value: $139.97/SF Land-to-building ratio: 5.78:1 This office building is along the popular commercial corridor of Stadium Drive in Oshtemo Township. Although configured as two units, at time of sale, it was occupied by a single user. It was built in 2007 and is of wood-frame construction with a brick veneer exterior. Condition was considered average. Information was obtained from the listing agent and confirmed with assessment records.
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26 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 Sales Comparison Chart SALES ADJUSTMENT GRID Subject Comp. 1 Comp. 2 Comp. 3 Comp. 4 Price / Square Foot 158.14 127.91 139.34 139.97 TRANSACTION ADJUSTMENTS Property Rights Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple 0% 0% 0% 0% Adjusted $/SF 158.14 127.91 139.34 139.97 Market Conditions Jul-25 Apr-25 Jan-25 Nov-24 0% 0% 0% 0% Adjusted $/SF 158.14 127.91 139.34 139.97 Condition of Sale Arm's Length Arm's Length Arm's Length Arm's Length 0% 0% 0% 0% Adjusted $/SF 158.14 127.91 139.34 139.97 Financing Conv. Conv. Conv. Conv. 0% 0% 0% 0% Adjusted $/SF 158.14 127.91 139.34 139.97 PROPERTY ADJUSTMENTS Location -10% 10% 10% -5% Age 1995 5% 0% -5% -5% Quality/Condition Average 0% 10% 0% 0% Size 7,669 0% 5% 0% 0% Zoning Office 0% 0% 0% 0% Finish Professional Office 0% 0% -5% 5% Land-to-building 4.44:1 0% -10% 0% 0% Functional Utility Average 0% 0% 10% 10% Overall Adjustment -5% 15% 10% 5% Adjusted $/SF 150.23 147.10 153.27 146.97 Mean 149.39 Unadjusted Range 30.23 Median 148.66 Adjusted Range 6.31
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27 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 Comparables Sales Discussion and Conclusion While none of the comparable properties are solely considered reflective of value in the appraised property, collectively these sales illustrate demand for similar character medical-office properties in the Southwest Michigan market and sets parameters that can be utilized to determine value in the subject. The comparable properties are first adjusted for transaction dissimilarities. No transaction adjustments are deemed necessary for the selected comparables. The comparable properties are then adjusted for property dissimilarities. Comparable 1 has value deducted for a superior location in the Grand Rapids market, but added for age. For comparison purposes, the overall adjustment is slightly downward. Comparable 2 is increased for its secluded location in an industrial park, for condition, and for size, as per economies of scale. Value is taken away for the comparable having surplus land. The net adjustment is positive. Comparable 3 is increased for location and functional utility as this property has two units. Value is taken away for age and for having a medical finish. The overall adjustment is upward. Comparable 4 is reduced for location and age. Increases are made for an inferior finish and functional utility as this is a two unit. The final adjustment is upward. The comparables properties have an overall unadjusted unit value range of $127.91 to $158.14 per square foot. After transaction and property adjustments, the unit values range from $146.97 to $153.27 with a mean of $149.39 and a median of $148.66. A unit value of $150.00 per square foot is concluded and equates to an overall value of $1,150,350. The value estimate based on the sales comparison approach is rounded to $1,150,000.
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28 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 INCOME CAPITALIZATION APPROACH The income capitalization approach is a means of estimating the value of a property by considering the future benefits to be derived from the ownership of the property. The estimated net income the property is capable of generating is capitalized at a rate which represents the proper relationship between the risk inherent in the ownership of the property and its net income. The term "market" rent is used to refer to the rental income that the available space in question would most likely command on the open market, as of the effective date of the appraisal. It is the going market rate of rental for competitive space as of that date. Imputed rental income is the process of imputing or assigning a rental rate to owner-occupied income property provided there is an active market for similar, competitive space. An imputed rental will reflect what the space would most probably command if it were made available on the open market. The income capitalization approach to value is based on the premise that a typical purchaser of an income-producing property will estimate a present value of a property by its anticipated net income. The purchaser expects the property to pay for itself and provide a competitive return on the investment until it is sold. Real estate value, therefore, is the value of the present worth of the benefits of ownership as anticipated by prospective investors who constitute the market. The basic steps of the income capitalization approach are: 1. Estimate gross income. 2. Subtract an anticipated loss due to vacancies to arrive at an effective gross income. 3. Subtract applicable expenses to arrive at an estimate of net operating income. 4. Capitalize the net operating income at an overall capitalization rate that reflects the risk in the property.
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29 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 Comparable Office Market Rents The appraised property is owner occupied. To implement this methodology, an imputed rent is estimated based on market comparables. An investigation into the local office rental market was undertaken to find current lease rates for similar character units. The following rentals are identified, and their rental rates illustrated in the following table: ADDRESS Unit Size Area Age Lease Date Length Rate/Term 2047 Niles Ave, St. Joseph 3,000 sf 1994 May-25 5 yrs $13.50/nnn 213 Hilltop Rd, St. Joseph 3,554 sf 1957 Apr-25 3 yrs $9.95/m-g 2570 Niles Rd, St. Joseph 5,500 sf 2011 Apr-24 3 yrs $23.00/nnn 830 Pleasant St, St. Joseph 2,020 sf 1982 Oct-24 3 yrs $12.00/m-g 3134 Niles Road, St. Joseph 5,355 sf 1991 Varies Varies $7.55-14.45/nnn 2900 S. State St, St. Joseph Varies 1976 NA NA $13.00-18.50/m-g 505 Pleasant St - 400, St. Joseph 29,655 sf 1900 Jan-17 Varies $10.00-15.00/m-g 222 State Street, St. Joseph 5,808 sf 1900 Varies Varies $10.00-20.00m-g 500 Renaissance Dr, St. Joseph Varies 1990 Avail. Varies $15.00/m-g 620 Broad St, St. Joseph 2,700 sf Remodel Avail. NA $20.00/m-g 500 Momany Dr, St. Joseph 4,020 sf 2003 Avail. NA $15.00/nnn The comparable office rentals indicate a lease rate range from $7.55 to $20.00 per square foot and vary based on unit characteristics, inclusions, and lease terms. Converting to a triple-net bases suggests a range of $6.95 - $23.00/sf with an unweighted triple- net average of $13.49 For analysis purposes, the imputed rental rate is calculated as a tripe-net arraignment. Based on the characteristics of the subject property, high-value location along Main Street, professional office finish elevator, a rental rate of $15.00 per square foot is concluded and used. Potential income is estimated at $115,035 ($15.00 x 7,669 sf). Vacancy Information published by CoStar for the 1st quarter, 2026, in West Michigan for office properties is averaging 5.08%. Research was also conducted for Berrien County, but data was insufficient for analysis. Based on the characteristics of the appraised property, a rate of 10%, inclusive of 5.0% frictional vacancy, is concluded and used.
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30 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 Expenses For analysis purposes, the property is valued triple-net. Under this scenario, operating expenses are the responsibility of the tenant. Expenses attributable to the landlord are limited to a management fee and repair reserves. According to data collected from other properties I have appraised in the West Michigan market; typical management fees are ranging 7-12% of effective gross income. For this analysis, a rate of 10% is used. According to the latest PWC survey regarding reserves, the typical reserve requirement ranges from $.10 - $.25 per square foot of gross building area. Given the characteristics of the appraised property, a rate of $.15 is utilized and equals $1,150 ($.15 x 7,669 square feet). For valuation purposes, a deduction is also included for triple-net charges incurred by the property owner during a vacancy. This includes real estate taxes @ 8.56/sf*, maintenance @ $0.50/sf**, and insurance @ $0.40/sf**. Total charges equal $9.46/sf, or $72,571.03. Based on a 10% vacancy the charge equates to $7,257. * As value assumes a sale, the real estate taxes are uncapped to the SEV and equal $65,669.93, or $8.56 per square foot annually. The current SEV is excessive and beyond an indications of market value. ** Based on market data.
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31 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 Overall Capitalization Rate There are several methods and sources to develop an overall rate (OAR). The preferred method is market-extracted data from actual recent sales. The market has been researched for sales of leased-fee office facilities in the last 36 months in the West Michigan market. This information is illustrated below. The market-extracted capitalization rates range from 6.36% to 13.66%, with an overall average of 8.63%. Capitalization rates are also obtainable from nationally published data. The most recent edition of the Investor Survey, publish by Realty Rates, for the 1st quarter 2026, shows: Category Range Average Office – All Types 6.12-14.49% 9.45% Office – CBD 6.92-14.49% 10.23% Office – Suburban 6.12-13.29% 9.05% Office – Medical 7.05-13.97% 10.04% The reported rates average 9.05% to 10.23% with most survey participants anticipating rates to decrease moving forward. National average typical exceed rates in the Southwest Michigan market. The latest statistics publish by CoStar show the average capitalization rate for office properties under 10,000 square feet in the 1st quarter 2026 for West Michigan is 7.90%. Given the characteristics of the subject property, a rate of 8.00% is considered appropriate and used for this analysis. Direct capitalization is as follows:
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32 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 Direct Capitalization Income Rental Income $115,035 Potential Gross Income (PGI) 115,035 Vacancy and Credit Loss 10.0% 11,504 Effective Gross Income (EGI) 103,532 Expenses Management Fee 10.0% 10,353 Triple-Net Charges 7,257 Total Expenses 17,610 Reserves for Replacement 0.15 1,150 Net Operating Income (NOI) 84,771 Capitalization Rate 8.00% Estimated Value $1,059,636 The estimated value based on the income capitalization approach is rounded to $1,060,000.
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33 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 RECONCILIATION Reconciliation is the last phase in any valuation assignment in which two or more value indications derived from market data are resolved into a final value opinion. In reconciliation, the appraiser reexamines the entire appraisal. The appraiser then uses reconciliation criteria to form a meaningful, defensible, and credible final value conclusion. The appropriateness of each approach used, the accuracy of the data collected, the calculations made, and the quantity of the evidence presented is considered relative to each specific appraisal assignment. The sales comparison and income capitalization approaches to value are used to estimate value in the appraised property. The sales comparison approach to value is the dominate methodology to valuing the appraised property given its highest and best use as an owner-occupied facility that most likely would not be purchased based on its ability to generate an acceptable rental income stream. The income capitalization approach is also developed and used only as a means to check the reasonableness of value estimated using the sales comparison approach. The following is concluded: Sales Comparison Approach: $1,150,000 Income Capitalization Approach: $1,060,000 Concluded Opinion of Value: $1,100,000 Disclaimer The reader is cautioned and reminded that the value conclusion presented in this appraisal report applies only as of the effective date indicated. The appraiser makes no representation as to the effect on the appraised property of any unforeseen event, subsequent to the effective date of the appraisal.
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34 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 ESTIMATED EXPOSURE TIME A normal exposure period is the amount of time necessary to expose a property to the open market to achieve a sale. Implicit in this definition are the following conditions: 1. The time a property remains on the market. 2. The estimated length of time 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; a retrospective estimate based on an analysis of past events assuming a competitive and open market. Exposure time is always presumed to occur prior to the effective date of the appraisal. The overall concept of reasonable exposure encompasses not only adequate, sufficient, and reasonable time but also adequate, sufficient, and reasonable effort. Exposure time is different for various types of real estate and value ranges and under various market conditions. (Appraisal Standards Board of The Appraisal Foundation, Statement on Appraisal Standards No. 6, "Reasonable Exposure Time in Real Property and Personal Property Market Value Opinions") Market value estimates imply that an adequate marketing effort and reasonable time for exposure occurred prior to the effective date of the appraisal. In the case of disposition value, the time frame allowed for marketing the property rights is somewhat limited, but the marketing effort is orderly and adequate. With liquidation value, the time frame for marketing the property rights is so severely limited that an adequate marketing program cannot be implemented. (The Report of the Appraisal Institute Special Task Force on Value Definitions qualifies exposure time in terms of the three above-mentioned values.) See also marketing time. The most recent information from the local multiple listing service indicates that over the past 12- month period for office properties in the West Michigan market, the average days on the market was 130 with a cumulative average of 163. The sampling consists of 117 properties sold during the period. The market data suggests an estimated exposure time of 4-6 months. Marketing time would likely be similar.
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35 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 CERTIFICATION I 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 are limited only by the reported assumptions and limiting conditions, and are my personal, impartial professional analyses, opinions, and conclusions. ∙ I 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. ∙ I have not engaged in any services pertaining to the subject property within the three-year period immediately preceding acceptance of the assignment. ∙ I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. ∙ my engagement in this assignment was not contingent upon developing or reporting predetermined results. ∙ my 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. ∙ to the best of my knowledge and belief, the reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics, the Standards of Professional Practice of the Appraisal Institute, and the Uniform Standards of Professional Appraisal Practice. ∙ no one provided significant real property appraisal assistance to the person signing this certificate. ∙ the use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. ∙ I have personally viewed the property that is the subject of this report.
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36 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 ∙ as of the date of this report, I have completed the Standards and Ethics Education Requirement for Candidate for Designation of the Appraisal Institute. In Michigan, appraisers are required to be licensed/certified and are regulated by the Michigan Department of Consumer and Industry Services, Licensing Division, P.O. Box 30018, Lansing, Michigan 48909. Signed: Russel K. Koshar, Certified General Appraiser, License Number: 1201071087 * This report has been digitally signed. This signature is made with the intent to authenticate this document. APPRAISAL LICENCE
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37 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 QUALIFICATIONS Russel K. Koshar Certified General Appraiser Koshar Commercial Appraisal Services, LLC CONTACT INFORMATION: 7240 West H Avenue russkoshar@gmail.com Kalamazoo, Michigan 49009 Phone: (269) 808-0332 RELATED INDUSTRY EMPLOYMENT KOSHAR COMMERCIAL APPRAISAL SERVICES, LLC KALAMAZOO, MI Owner NOVEMBER 2016-PRESENT ❖ Real estate appraisal firm providing commercial valuation services in southwest Michigan ACURA VALUATION, INC. – COMMERCIAL DIVISION KALAMAZOO, MI Senior Appraiser AUGUST 2014-NOVEMBER 2016 ❖ Real estate appraisal firm providing residential and commercial valuation services in southwest Michigan CHRISTENSEN KOSHAR & ASSOC. VALUATION SERVICES, LLC KALAMAZOO, MI Partner MARCH 2004-AUGUST 2014 ❖ Commercial real estate appraisal firm providing valuation services in southwest Michigan. REAL ESTATE BROKER (SELF-EMPLOYED) Southwest Michigan Owner 1986-PRESENT ❖ Commercial and residential real estate broker serving the southwest Michigan area. I have owned and operated numerous real estate offices and been a multi-million dollar producer REAL ESTATE BUILDER/DEVELOPER (SELF-EMPLOYED) Southwest Michigan Owner 1991-2007 ❖ Residential builder serving the southwest Michigan area. I was a single-family residential builder, developed residential plats, and restored/renovated residential properties. REAL ESTATE INVESTOR (SELF-EMPLOYED) Southwest Michigan Owner 1981-PRESENT ❖ Owned, operated, and managed hundreds of multi and single-family residential properties in southwest Michigan
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38 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 LICENSES & AFFILIATIONS ❖ Michigan Certified General Appraiser (License: 1201071087) ❖ Michigan Real Estate Broker (License: 6504204250) ❖ American Society of Appraisers (Accredited Senior Appraiser) ❖ Appraisal Institute (candidate for MAI) ❖ Greater Kalamazoo Association of Realtors ❖ Michigan Association of Realtors ❖ National Association of Realtors ❖ GRI - Graduate, REALTOR Institute EDUCATION MICHIGAN STATE UNIVERSITY BUSINESS CURRICULUM LAKE MICHIGAN COMMUNITY COLLEGE BUSINESS CURRICULUM INDIAN RIVER COMMUNITY COLLEGE BUSINESS CURRICULUM VALPARAISO UNIVERSITY BACHELOR OF SCIENCE - BUSINESS FINANCE MARYLHURST UNIVERSITY BACHELOR OF SCIENCE - BUSINESS / REAL ESTATE STUDIES THE APPRAISAL INSTITUTE CANDIDATE FOR MAI EXPERIENCE ❖ Licensed real estate broker in the State of Michigan since 1986. ❖ Licensed builder in the State of Michigan since 1991. ❖ Licensed commercial appraiser in the State of Michigan since 2004. ❖ Founding president of Peace Lutheran Church, St. Joseph, Michigan. ❖ Successfully owned and operated numerous small businesses. ❖ Extensive experience in real estate development, renovation, and investing.
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39 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 RELATED COURSEWORK - Analyzing Distressed Real Estate - 4 hours/Appraisal Institute (AI) - Course 320 - General Applications - 40 hrs/AI - Analyzing Operating Expenses - 7 hrs/AI - Feasibility, Market Value, Investment, Timing: Option Value - 7 hrs/AI - Highest & Best Use and Market Analysis 520 - 40 hrs/AI - Apartment Appraisal, Concepts & Applications - 15 hrs/AI - Michigan Laws & Rules - 2 hrs/AI - 7-Hour National USPAP Update Course - 7 hrs/AI - General Appraiser Sales Comparison Approach - 30 hrs/AI - General Appraiser Report Writing and Case Studies - 30 hrs/AI - General Appraiser Site Valuation and Cost Approach - 30 hrs/AI - General Appraiser Income Approach/Part 1 - 30 hrs/AI - General Appraiser Income Approach/Part 2 - 30 hrs/AI - Real Estate Finance Statistics and Valuation Modeling - 15 hrs/AI - Business Practices and Ethics - 7 hrs/AI - Loss Prevention Program for Real Estate Appraisers - 7 hrs/AI - National USPAP– 15 hrs/Holloway’s Institute (HI) - Real Estate Appraisal One - 30 hrs/HI - Real Estate Appraisal Two - 33 hrs/HI - Introduction to Real Estate Studies - 30 hr/Marylhurst University (MU) - Real Estate Law - 30 hr/MU - Building Construction and Design - 30 hr/MU - Land Use and Zoning - 30 hr/MU - Environmental Issues - 30 hr/MU - Real Estate Development - 30 hr/MU - Principles of Appraising - 30 hr/MU - Real Estate Finance I - 30 hr/MU - Real Estate Finance II - 30 hr/MU - Appraisal of Land Subject to Ground Lease - 7 hrs/McKissock (Mc) - Appraisal of Self-Storage Facilities - 7 hrs/Mc CLIENTS Sturgis Bank & Trust, Huntington National Bank, Old National Bank, United Federal Credit Union, Honor Credit Union, TCF Bank, PNC Bank, Horizon Bank, 1st Source Bank, Consumers Credit Union, Educational Consumers Credit Union, First Financial Bank of Michigan, The Bank of Holland, Southern Michigan Bank & Trust, numerous municipalities, Wal-Mart, State Farm Insurance, AAA Insurance, FDIC, as well as numerous individuals, attorneys, major corporations, and developers.
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40 | P a g e 26-013 519 Main Street, St. Joseph, MI 49085 ADDENDUM A) Engagement Agreement
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