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APPRAISAL REPORT APPRAISAL OF A 2,400-Square-Foot Industrial Building Located at 1961 Whitney Mesa Drive Henderson, Nevada 89014 Owner of Record: County Funeral Services, LLC APN: 161-32-712-013 PREPARED FOR Clark County Credit Union c/o Mr. John Gentile 87 E. Lake Mead Parkway Henderson, Nevada 89015 PREPARED BY Luke J. Adamo, MAI Britton-Adamo Group/ROI Appraisal 55 Gibson Road, Suite 104 Henderson, Nevada 89012 Phone: 702-558-2144 Fax: 702-558-9933 File # 20-089 DATE OF “AS IS” VALUATION September 25, 2020
Transcript

APPRAISAL REPORT

APPRAISAL OF

A 2,400-Square-Foot Industrial Building

Located at 1961 Whitney Mesa Drive

Henderson, Nevada 89014

Owner of Record: County Funeral Services, LLC

APN: 161-32-712-013

PREPARED FOR

Clark County Credit Union

c/o Mr. John Gentile

87 E. Lake Mead Parkway

Henderson, Nevada 89015

PREPARED BY

Luke J. Adamo, MAI

Britton-Adamo Group/ROI Appraisal

55 Gibson Road, Suite 104

Henderson, Nevada 89012 Phone: 702-558-2144 Fax: 702-558-9933

File # 20-089

DATE OF “AS IS” VALUATION

September 25, 2020

ROI Appraisal BBRRIITTTTOONN--AADDAAMMOO GGRROOUUPP

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55 South G ibson Road • Su i te 104 • Henderson, NV 89012

Phone 702.558.2144 • Fax 702.558.9933

September 29, 2020

Clark County Credit Union

c/o Mr. John Gentile

87 E. Lake Mead Parkway

Henderson, Nevada 89015

RE: A 2,400-square-foot industrial building located at 1961 Whitney Mesa Drive, Henderson,

Nevada 89014

Owner of Record: County Funeral Services, LLC

APN: 161-32-712-013

To Whom It May Concern:

As you requested, I have completed an appraisal of the above referenced property. The subject

property consists of a single-tenant, industrial building, located at 1961 Whitney Mesa Drive,

Henderson, Nevada 89014. The subject improvements consist of 2,400 square feet of total

building area, containing approximately 480 square feet of one-story office space and 1,920

square feet of warehouse space, indicating an office space ratio of roughly 20%. The subject is

situated on a 0.16-acre site located within the interior of the Green Valley Industrial Park, along the

south side of Whitney Mesa Drive, east of Mountain Vista Street, in the southeast portion of the

Las Vegas Valley, in the City of Henderson, Clark County, Nevada. The subject was constructed

in 2006 and is in an overall good condition for its age.

The subject is currently being operated as a crematorium and includes specific built-in

equipment for the business operation. The equipment is separately identified and valued within

the appraisal. The property is fully described in the attached report, which contains the data and

analysis from which the value estimates were formed.

The purpose of this appraisal is to estimate the market value of the subject property based upon the

following valuation scenario:

• Market Value of the Real Estate – “As Is” – fee simple interest

• Fair Market Value in Continued Use of the Equipment – “As Is” – fee simple interest

The client of this appraisal is Clark County Credit Union. The intended user of this appraisal is

Clark County Credit Union, the Small Business Administration and Nevada State Development

Corporation. The intended use of this appraisal is for loan underwriting and/or credit decisions.

The use of the appraisal, or any information contained herein, by any other party other than the

stated client, or for any other use than the stated intended use, is considered unauthorized and is

55 South G ibson Road • Su i te 104 • Henderson, NV 89012

Phone 702.558 .2144 • Fax 702.558.9933

prohibited. The appraisers and the appraisal firm will assume no responsibility for the results

from the unauthorized use of this report or the contents herein.

This appraisal has been prepared to comply with the Financial Institutions Reform, Recovery and

Enforcement Act of 1989 (FIRREA), the Uniform Standards of Professional Appraisal Practice

(USPAP), as promulgated by the Appraisal Standards Board and the Office of the Comptroller of

Currency, and Clark County Credit Union appraisal requirements. This report has been prepared

in an Appraisal Report format, as set forth under Standards Rule 2-2(a) of USPAP. The depth of

discussion contained in the report is specific to the needs of the client and for the intended use

stated herein.

After considering all of the available facts and subject to the underlying assumptions and limiting

conditions contained herein, it is our opinion that the market values in the subject, as of

September 25, 2020 are:

Component Market Value

Real Estate – “As Is” – fee simple interest $430,000

Continued Use of the Equipment – “As Is” – fee simple interest $100,000

To determine actual mechanical condition of the equipment is outside of our expertise and the

scope of this assignment. The equipment appeared to be in functional and good condition. If it is

the client’s desire to verify the physical condition and/or needed repairs of the subject

equipment, the client should consult a qualified mechanic/technician.

The equipment value is for business personal property only and exclude consideration of real

estate or goodwill, and it is assumed there are no hidden defects which are not discernible from a

visual inspection and which could affect value. The owner is further assumed to have fee simple

ownership of the various appraised items, which are appraised assuming a clear and marketable

title.

The exposure time associated with the value conclusion is estimated at 12 months. The

estimated marketing time for the subject, as of the date of value, is 12 months.

55 South G ibson Road • Su i te 104 • Henderson, NV 89012

Phone 702.558 .2144 • Fax 702.558.9933

Thank you for giving us the opportunity to be of service to you in this important matter. If you

have any questions regarding the attached appraisal report, or require further assistance, please

do not hesitate to call our office at 702-558-2144.

Sincerely,

Luke J. Adamo, MAI

Certified General Appraiser #07352

State of Nevada

55 South G ibson Road • Su i te 104 • Henderson, NV 89012

Phone 702.558 .2144 • Fax 702.558.9933

COVID-19 Disclaimer

As of the date of this appraisal, the world is being significantly affected by COVID-19, also

known as the coronavirus. Reports are that this virus has obviously affected all aspects of the

real estate market. Specifically, there are less sales as potential buyers and brokers cannot

inspect properties and the majority of real estate professionals are working remotely from their

homes. According to CoStar as of March 15, 2020, “Early signs are emerging of a potential

slowdown in U.S. commercial real estate sales from the impact of the coronavirus pandemic. For

the three-week period following Feb. 21, when stock markets first began retreating from historic

highs, the pace of commercial property sales was about half what it was same three weeks a year

ago, according to CoStar data. Multifamily property sales were down about 58%. Industrial sales

sank 63%, retail declined 61% and hospitality showed a 37% drop. The one relative bright spot

was office property sales, which were only off slightly by 4.4%.”

This is obviously one of the most significant economic events in history and the fall out is

difficult to measure for the next few months. Never before has the Governor of the State of

Nevada ordered all casinos and non-essential businesses to close. These closures started on

March 18, 2020. Although phased reopening has begun, this has already lead to significant

layoffs, which will undoubtedly result in missed mortgage payments and other financial damage

to the local economy. Based on the current market data and the recent historical operation of the

subject, the opinion of the market value in this appraisal is valid. However, this pandemic could

cause this opinion of value to change once the effects of the market conditions are more known,

which could be at any time.

The positive aspect of this crisis is that interest rates have been significantly lowered which is

leading to an increase in the refinancing of real estate. In the first week of March, Treasury

yields on some bonds fell to their lowest level since 2001 and the Federal Reserve took the rare

action of making an emergency cut to interest rates to support the market. When Treasury yields

fall, banks charge lower interest rates for mortgages. These rates have really fallen since the first

of March 2020. On top of collapsing Treasury yields, the Federal Reserve announced a rare

emergency rate cut in response to concern over the effect of the rapidly spreading coronavirus on

global growth. They announced a 50-basis point reduction in the target rate on March 3, 2020.

According to the Mortgage Bankers Association (MBA), their Refinance Index increased 26%

on the second week of March from the previous week before much of the capital markets’

turmoil. “The 30-year fixed rate mortgage dropped to its lowest level in more than seven years

last week, amidst increasing concerns regarding the economic impact from the spread of the

coronavirus, as well as the tremendous financial market volatility,” Mike Fratantoni, MBA's

senior vice president and chief economist, said in a statement. “Given the further drop in

Treasury rates this week, we expect refinance activity will increase even more until fears subside

and rates stabilize.” Although these refinance statistics are more reflective of the residential

55 South G ibson Road • Su i te 104 • Henderson, NV 89012

Phone 702.558 .2144 • Fax 702.558.9933

mortgage industry, the lower interest rates will also lead to the refinancing of commercial real

estate mortgages.

A historical analysis or real estate prices due to catastrophic economic events indicates prices

will likely decrease. The great recession caused by the sub-prime lending crises that took hold in

2008 and continued into 2011. The charts below illustrate industrial building prices for the Las

Vegas area.

The price decline in 2008 at the start of the great recession was far greater, dropping over 70%

from 3rd Quarter 2007 to 3rd Quarter 2010, and remaining stagnant through 2013. As indicated in

the table above, according to CoStar Analytics, the anticipation is for declines in property values

of nearly 20% over the next year with an equivalent recovery over the following year.

There is great debate about how the Covid-19 Pandemic will impact commercial real estate

prices. To date there has been nominal data to indicate whether prices are decreasing, as many

sellers have pulled their listings off the market and most buyers remain sidelined to determine

the fallout from lost employment and shuttered small businesses.

A number of brokers in the Las Vegas market area were consulted over the previous month in

regard to the impact of the current market conditions with consideration given to COVID-19.

Although there is limited comparable data to develop a specific adjustment, there is a generally

consensus of some negative impacts to commercial real estate. We are aware of transactions that

have been renegotiated a slightly lower rates of 5%-10%, rate reductions by property managers

55 South G ibson Road • Su i te 104 • Henderson, NV 89012

Phone 702.558 .2144 • Fax 702.558.9933

as a concession to existing tenants of 5%, and deferred rent payments. These factors were

considered in various components within the valuation.

While this appraisal reports an exposure time opinion, marketing times may increase due to the

overall uncertainty in the market at this time due to market participants putting buying/selling

plans on hold until a more clear picture of the extent of the impacts of the virus is determined.

The few transactions that have closed, have yet to show any clear impact. A recent article

published in Market Watch reports delinquencies on commercial mortgage-backed securities

(CMBS), which are loans on malls, skyscrapers, apartments, offices and other property types

packaged into bond deals, stood at 2.57% in March, far lower than their 10.06% peak in July

2012 in the wake of the global financial crisis, according to Moody’s Investors Service’s latest

tally.

But those figures also don’t fully capture the economic disruptions caused by the coronavirus

pandemic, Moody’s analysts warned, adding that property-level “cash-flow stress, particularly

across hotels and retail properties,” will trigger more defaults. Much, naturally, will hinge on

how many borrowers struggle to stay current on their debts in the coming months, if property

loan defaults spike and whether financing conditions start to thaw after freezing up last month.

Even recent positive developments, including talk of daily life eventually resuming, come with

the caveat that the pandemic will leave scars. There are relief efforts for commercial property

owners, which could benefit from some of the Federal Reserve’s up-to-$2.3 trillion in emergency

facilities to keep credit flowing in financial markets. In April 2020, the Fed expanded its reach

to include older commercial mortgage-backed securities, which provided a boost to secondary

trading after liquidity dried up in March. But unlike the Fed’s broad backstop of corporate debt,

new CMBS issuance remains outside of its reach, casting a shadow over the more-than-$60

billion of debt that borrowers will need to refinance through 2022, per Cantor Fitzgerald

estimates.

In conclusion, it is probable property values will decrease in the short term while the economy

re-opens. To date, current data available is not showing any clear downward pressure with

limited inventory in the subject’s property type; however, market fundamentals (increased

unemployment, business closures, loan defaults), will eventually take hold and negatively impact

property values.

Britton-Adamo Group/ROI Appraisal

File Number 20-089

T A B L E O F C O N T E N T S

EXECUTIVE SUMMARY .......................................................................................................... 1

SUBJECT PHOTOGRAPHS ...................................................................................................... 4

INTRODUCTION......................................................................................................................... 8

N E I G H B O R H O O D D E S C R I P T I O N ........................................................................ 14

INDUSTRIAL MARKET OVERVIEW ................................................................................... 29

PROPERTY TAXES AND ASSESSOR’S VALUES .............................................................. 39

SITE DESCRIPTION ................................................................................................................. 42

DESCRIPTION OF IMPROVEMENTS .................................................................................. 45

HIGHEST AND BEST USE ANALYSIS ................................................................................. 48

METHOD OF VALUATION .................................................................................................... 56

SALES COMPARISON APPROACH ..................................................................................... 57

INCOME CAPITALIZATION APPROACH .......................................................................... 74

RECONCILIATION .................................................................................................................. 88

INSURABLE VALUE ................................................................................................................ 91

VALUATION OF EQUIPMENT .............................................................................................. 92

VALUATION ANALYSIS ....................................................................................................... 100

ASSUMPTIONS AND LIMITING CONDITIONS .............................................................. 102

CERTIFICATION .................................................................................................................... 107

ADDENDA

Engagement Letter

Subject Property Information

CoStar Analytics

Definitions

Qualifications of the Appraiser

Britton-Adamo Group/ROI Appraisal

File Number 20-086 1

E X E C U T I V E S U M M A R Y

Real Estate

Property Identification: A single-tenant, free standing industrial building located at 1961

Whitney Mesa Drive, Henderson, Nevada 89014

Assessor Parcel Number: 161-32-712-013

Site Size: 0.16 acres; 7,000 square feet

Building Area: Office – 480 sf

Warehouse – 1,920 sf

Total - 2,400 sf

Office Build-Out: 20%

Number of Units: 1

Occupancy 100% Owner-Occupied

Year Built: 2006

Remaining Economic Life: 35 years

Census Tract: 5101

Zoning: IL, Limited Industry District (Henderson)

Land Use Designation: Commercial (Henderson)

Flood Zone: Zone X; FEMA Flood Insurance Rate Map 32003C 2580F

Highest & Best Use “As Vacant Land”: Hold for industrial development

Highest & Best Use “As Is”: Continued use as industrial building

Probable Buyer: Owner-user

Real Estate Market Value “As Is”: $430,000

Extraordinary Assumptions: None

Hypothetical Condition: None

Insurable Value $195,000

Britton-Adamo Group/ROI Appraisal

File Number 20-086 2

Equipment

General Description: The subject is currently being operated as a crematorium and

includes specific built-in equipment for the business operation.

The primary components of the equipment include:

• Human cremator retort

• Cremains processing station

• 2 walk-in coolers

• Hydraulic lift table

• Mortuary freezer

Assumption/Condition: To determine actual mechanical condition is outside of our

expertise and the scope of this assignment. The equipment

appeared to be in functional and good condition. If it is the

client’s desire to verify the physical condition and/or needed

repairs of the subject equipment, the client should consult a

qualified mechanic/technician.

The equipment values is for business personal property only

and exclude consideration of real estate or goodwill, and it is

assumed there are no hidden defects which are not discernible

from a visual inspection and which could affect value. The

owner is further assumed to have fee simple ownership of the

various appraised items, which are appraised assuming a clear

and marketable title.

Title of Appraised Property: All appraised items are presumably owned by County Funeral

Services, LLC; owner of the aforementioned real property

Highest & Best Use “As Is”: Continued use as crematory

Fair Market Value: $100,000

Sale History of Appraised Items: Other than the acquisition by the current owner, we are

unaware of any prior sales of the appraised items. To our

knowledge, none of the items are currently listed for sale.

Class of Property: Crematory equipment

Use on Effective Date: Crematory equipment

Use on Report Date: Crematory equipment

Measurable Marketplace: Similar businesses that provide comparable products and

services throughout Nevada

Exposure/Marketing Time: 0-6 months

Britton-Adamo Group/ROI Appraisal

File Number 20-086 3

General

Dates of Value: September 25, 2020

Interest Appraised: Fee simple

Date of Report: September 29, 2020

Client Clark County Credit Union

Intended User Clark County Credit Union, the Small Business Administration

and Nevada State Development Corporation

Intended Use: The intended use of this appraisal is for loan underwriting

and/or credit decisions.

Exposure/Marketing Period: 12 months

Britton-Adamo Group/ROI Appraisal

File Number 20-086 4

S U B J E C T P H O T O G R A P H S

Aerial Photograph

SUBJECT

SUBJECT

Britton-Adamo Group/ROI Appraisal

File Number 20-086 5

View to the southwest facing the subject property

South

Yard entrance

Primary access to office

Office

Britton-Adamo Group/ROI Appraisal

File Number 20-086 6

Restroom

Mezzanine

Warehouse

Yard

Britton-Adamo Group/ROI Appraisal

File Number 20-086 7

Equipment

Human cremator retort

2 walk-in coolers

4-person mortuary freezer

Cremains processing station

Hydraulic lift

Britton-Adamo Group/ROI Appraisal

File Number 20-086 8

I N T R O D U C T I O N

Subject Identification

The subject property consists of a single-tenant, industrial building, located at 1961 Whitney

Mesa Drive, Henderson, Nevada 89014. The subject improvements consist of 2,400 square feet

of total building area, containing approximately 480 square feet of one-story office space and

1,920 square feet of warehouse space, indicating an office space ratio of roughly 20%. The

subject is situated on a 0.16-acre site located within the interior of the Green Valley Industrial

Park, along the south side of Whitney Mesa Drive, east of Mountain Vista Street, in the southeast

portion of the Las Vegas Valley, in the City of Henderson, Clark County, Nevada. The subject

was constructed in 2006 and is in an overall good condition for its age.

The subject is currently being operated as a crematorium and includes specific built-in

equipment for the business operation. The equipment is separately identified and valued within

the appraisal. The remaining discussion and analysis of the equipment is provided following the

conclusion of the real property.

The subject property is also identified as Clark County assessor’s parcel number 161-32-712-

013.

Property Ownership and History

The subject is currently under the ownership of County Funeral Services, LLC. The subject

recently transferred to the current owner in July of 2020 via bankruptcy sale at a recorded price

of $215,000 (Document #: 20200717:02663). The current owner operates within the mortuary

industry and was familiar with the distressed nature of the sale. The difference between the

current market value and the recent sale price is primarily attributed to the conditions of sale.

There have been no other transfers involving the subject property in the prior three-year period.

Legal Description

A legal description is provided within the title report as follows:

Britton-Adamo Group/ROI Appraisal

File Number 20-086 9

The subject property is also described by its Clark County assessor’s parcel number 161-32-712-

013 or by its common street address of 1961 Whitney Mesa Drive, Henderson, Nevada 89014.

The property is further described by the maps and exhibits contained within this report.

Census Tract

The subject property is located in Census Tract 5101.

Purpose of the Appraisal

The purpose of this appraisal is to estimate the market values of the subject property based upon the

following valuation scenarios:

• Market Value of the Real Estate – “As Is” – fee simple interest

• Fair Market Value in Continued Use of the Equipment – “As Is” – fee simple interest

Property Rights Appraised

The interest that is the subject of this valuation is the fee simple estate, defined below.

Fee Simple Estate

“Absolute ownership unencumbered by any other interest or estate, subject only to the

limitations imposed by the governmental powers of taxation, eminent domain, police

power, and escheat.”

Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015)

Client of the Appraisal

The client of this appraisal is Clark County Credit Union.

Intended User of the Appraisal

The intended user of this appraisal is Clark County Credit Union, the Small Business

Administration and Nevada State Development Corporation.

Intended Use

The intended use of this appraisal is for loan underwriting and/or credit decisions. The

conclusions and opinions in this appraisal are not to be relied upon for purposes other than the

above stated intended use. The appraisers and the appraisal firm assume no responsibility for

results from the reliance on all or part of the appraisal for any other use other than the specified

intended use.

Effective Date of Valuation/Inspection Date

The effective date of the “as is” market value, as well as the inspection date of the property is

September 25, 2020.

Date of Report

The date of this report is September 29, 2020.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 10

Market Value Defined

Market Value means the most probable price which a property should bring in a competitive and

open market under all conditions requisite to a fair sale, the buyer and seller each acting

prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit

in this definition is the consummation of a sale as of a specified date and the passing of title from

seller to buyer under conditions whereby:

(1) Buyer and seller are typically motivated;

(2) Both parties are well informed or well advised, and acting in what they consider

their own best interests;

(3) 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 the Currency under 12 CFR, Part 34, Subpart C- Appraisals, 34.42 Definitions [f].)

Competency Provision

The signers of this report have the knowledge and experience to complete this appraisal

assignment in a competent manner. They have performed a number of appraisal assignments

recently for this property classification in the market area. Included in the Addenda are the

appraisers’ qualifications and the reader is referred to this section for additional information.

Appraisal Development and Reporting Process

This appraisal has been presented as an Appraisal Report as defined by the Uniform Standards of

Professional Appraisal Practice (USPAP), promulgated by the Appraisal Standards Board of

The Appraisal Foundation, and Clark County Credit Union appraisal requirements. The

reporting guidelines for an Appraisal Report are set forth under Standards Rule 2-2(a) of

USPAP and relate to the content and level of information provided in the report. This reporting

format requires all the necessary research and analysis to be performed however, some of the

information presented can be in an abbreviated format.

This appraisal is also intended to comply with the appraisal standards required by 12 CFR Part

34, dated June 7, 1994 of FIRREA (Federal Financial Institutions Reform, Recovery and

Enforcement Act), and to comply with the 2020-2021 Edition of USPAP, as published by the

Appraisal Foundation, and the appraisal standards of the client.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 11

Scope of the Appraisal

The scope of the appraisal required investigating sufficient data relative to the subject property to

derive an opinion of value. The depth of the analysis was intended to be appropriate in relation

to the significance of the appraisal problem. In preparing this appraisal, the appraisers solely

inspected the exterior of the subject and researched specific subject property information deemed

relevant to this appraisal. This included information relating to ownership, zoning and planning,

flood hazard potential, tax assessment information, as well as other property information that may

affect the highest and best use of the subject. The appraisers also examined the subject's market

area for information on comparable sales, pending sales and listings of similar properties, as well

as general real estate and economic statistics and trends that are applicable to the subject’s

valuation. The market area was also examined to determine the demand and marketability of

properties with the subject's classification.

• Information provided for this appraisal included a brief description of the subject, bankruptcy

purchase agreement, summary of equipment and an engagement letter.

The opinions of the appraisers, and the analyses used to arrive at a conclusion(s) of value, is

based upon the market data available, together with the appraisers’ sole education, experience

and knowledge concerning the type of property being appraised. The appraisers are not

responsible for any items of fact in public records databases, subscription (fee) information

providers, or any other sources deemed reliable, that are incorrect.

Limitations of Scope

None

Environmental Hazards & Conditions

An environmental assessment report for the subject was not provided for review and

environmental issues are beyond my scope of expertise. During the course of this assignment,

there were no obvious signs of adverse environmental conditions or hazardous materials on or

near the property. Therefore, it is assumed that the subject is not adversely affected by

environmental hazards or conditions.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 12

AREA MAP

SUBJECT

Britton-Adamo Group/ROI Appraisal

File Number 20-086 13

NEIGHBORHOOD MAP

Britton-Adamo Group/ROI Appraisal

File Number 20-086 14

N E I G H B O R H O O D D E S C R I P T I O N

The Dictionary of Real Estate Appraisal, (Sixth Edition, 2015, page 156) defines a neighborhood

as “a group of complementary land uses; a congruous grouping of inhabitants, buildings, or

business enterprises.” Neighborhoods are defined by both physical and social boundaries to

delineate areas in which social, economic, governmental and environmental influences work in a

complementary fashion to affect the use and value of real estate. A neighborhood may be an

urban or suburban development, which may include residential, commercial, industrial or other

land uses that are generally characterized as being homogeneous in some respects, and includes a

unified area with some definite boundaries. Neighborhood boundaries may consist of well-

defined natural or man-made barriers or they may be defined by a distinct change in land use or

in the character of the inhabitants.

The purpose of a neighborhood analysis is to provide a bridge between the study of general

influences on all property values and the more detailed influencing characteristics of a localized

neighborhood. Neighborhood analysis is important in that it is concerned with the relationship

of the immediate surrounding urban environment to a particular parcel in its current or proposed

use. This evaluation is a necessary link of the property under study to the general market supply

and demand situation.

Location

The subject neighborhood is located approximately 10 miles south and southeast of downtown

Las Vegas, and is generally delineated by the following boundaries:

North: Russell Road

East: Lake Mead National Recreation Area

South: Black Mountain Range

West: Interstate 15

The majority of the neighborhood is within the City of Henderson boundaries, but also includes

unincorporated portions of Clark County and a section of Paradise Valley Township. Henderson

comprises the majority of the southeast Las Vegas Valley and includes the majority of the

population in the area. Most of the developments that have an impact on the area are within the

city limits of Henderson, including large well-established master-planned communities.

Statistical data for the city of Henderson is primarily presented as it provides the best indications

of the trends seen in the neighborhood.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 15

HENDERSON MAP

Demographics

The following map and table delineates the neighborhood zip codes.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 16

Information on population, housing and income for the City of Henderson are presented in the

following tables:

CITY OF HENDERSON POPULATION BY ZIP CODE

The population in the City of Henderson has had significant growth in recent years with a total

increase of nearly 55% from 2000 to 2015, indicating an annual growth rate of near 3%.

Between 2000 and 2006, Henderson was the fastest growing city in the country in terms of

percentage growth in the United States. The population has grown to over 300,000. The current

population projections indicate growth to nearly 364,000 over the next 5 years with an average

growth rate of nearly 2% per year over the next 10 years.

CITY OF HENDERSON - Housing Estimates by Zip Code

Britton-Adamo Group/ROI Appraisal

File Number 20-086 17

Business/Employment

The City is actively trying to attract new businesses to Henderson and there has been steady

growth in the number of businesses and employment. There are many incentives that attract new

business, as is shown in the list below.

A summary of the Henderson Employment figures are below:

Henderson has a higher median household income than Las Vegas, North Las Vegas and

unincorporated Clark County, and is approximately 23% above the income in all of Clark

County, Nevada.

The business climate is strong due to the many programs to lower various costs of doing

business. The following table provides Henderson’s largest private employers, ranked by the

number of employees.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 18

Henderson Largest Private Employers

Source: City of Henderson – http://hendersondata.com/industrial-structure

The following tables provide information on employment and wages by industry for Clark

County, Nevada.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 19

Source: City of Henderson – http://hendersondata.com/labor-force

Land Use/Development

The city is comprised of a variety of land uses, from low density residential to industrial and

commercial. Land within Henderson and in other local jurisdictions, by land usage is shown in

the following tables.

Land Area (Acres)

Source: http://hendersondata.com/jurisdictional-comparison

% of Land Area

Source: http://hendersondata.com/jurisdictional-comparison

Britton-Adamo Group/ROI Appraisal

File Number 20-086 20

The total land value of each property type for Henderson and other local jurisdictions, is

summarized in the table below.

Total Value By Land Use (2018)

Source: http://hendersondata.com/jurisdictional-comparison

The assessed value per acre for each of the various land uses in Henderson and other local

jurisdictions is summarized in the following table.

Value per Acre (2018)

Source: http://hendersondata.com/jurisdictional-comparison

Single family residential land in Henderson has an assessed value of approximately $676,000 per

acre, higher than Las Vegas, North Las Vegas and unincorporated Clark County, and nearly 25%

above the value per acre for all of Clark County.

Since the turn of the century, Henderson has experienced a tremendous amount of commercial

and residential development. Significant commercial development has occurred to support the

population base including the relocation of numerous businesses to the area. Retail and office

development are primarily located along the major roadways and much of the new construction

has been in the southwest portion of the city along St. Rose Parkway and Eastern Avenue. New

commercial projects not only provide an amenity to the area residents, but also add to the

employment base. Large developments include the Galleria Regional Mall, Green Valley Ranch

District, Sunset Station Hotel/Casino and the Green Valley Auto Center, all of which have been

well received and added to the employment opportunities in Henderson. The Galleria Mall is a

major regional mall with Robinson’s-May, Dillard’s and JC Penney as anchor tenants. The

District is an open-air village retail center adjacent to the Green Valley Ranch Resort with

upscale stores and restaurants at ground level and condominium units above.

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Industrial development has primarily been along the U.S. 95 corridor, generally between Sunset

Road on the north and Lake Mead Drive on the south. Industrial parks such as Black Mountain

Business Park, Gibson Business Park, Green Valley Business Park and Whitney Mesa have

attracted new businesses, many relocating to the Las Vegas area. Over the previous year, there

has been an influx of new industrial development in the West Henderson area of the submarket,

with large distribution centers and warehousing.

With an increasing population base, supporting commercial facilities have increased in demand.

Office buildings had been generally well received by the market, as have most retail centers.

These facilities are generally located along the major thoroughfares, with secondary locations

being built-out with residential product. An indirect influence of the subject neighborhood is the

City of Henderson downtown core. This older section of Henderson is undergoing revitalization

supported by the Redevelopment Agency and is evidenced by several new retail, residential, and

office projects.

The following summarizes the commercial market segments in Henderson as of the 4th Quarter

of 2019.

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Taxable Retail Sales

The following table reflects the year over year retail sales trends and categories.

.

Master Planned Communities

The development of master planned communities in Henderson has accounted for much of the

population growth in the city over the past 20 years. The larger communities include a variety of

single family and multi-family residential products, supporting commercial uses and significant

parks and public recreation and cultural facilities. As of 2017, these communities are in various

stages of development, with most of the anticipated growth in the coming years expected to

occur in the Inspirada and Cadence development, which combined are planned to add over

25,000 units to the city. The major master planned communities in Henderson are presented on

the following page.

HENDERSON MASTER PLANNED COMMUNITIES

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Lake Las Vegas is a large master-planned residential and resort community surrounding a 320

acre lake with more than ten miles of shoreline established in 1984. This community (roughly

half of which is gated) has the additional following amenities: waterfalls, wildlife, high-end

resorts and hotels, a yacht and beach club, a fitness center, three golf courses dispersed

throughout the community, smaller ponds also dispersed throughout the community and

incredible views. There are 19 distinct neighborhoods including custom home sites, courtyard

villas, waterfront & golf villas, resort condominiums, luxury executive homes and courtyard

town homes. Hyatt opened a hotel/casino at Lake Las Vegas in 1999, and the 350-room Ritz-

Carlton hotel/casino was completed in 2003. The community has had ongoing financial

problems and changes in ownership beginning about 2007 when the past developers pushed the

project into bankruptcy. The project emerged from bankruptcy in 2010 under the control of

Credit Suisse and Highland Capital. There have been some positive signs of improvement, with

rising home prices, hotel occupancy improving and sales of vacant sites to developers and

homebuilders. The Falls golf course and the Reflection Bay Golf Club both closed in 2009

however, reopened in 2014. The Casino MonteLago was completed in 2003 and has closed

multiple times, most recently in 2013 and has yet to reopen.

MacDonald Highlands is within the MacDonald Ranch development, a 3,200-acre development

with 4 villages including Del Webb's Sun City MacDonald Ranch, in the city of Henderson,

Nevada. MacDonald Highlands, formerly known as The Foothills at MacDonald Ranch, is a

private gated golf course community in the foothills of the McCullough Mountains south of

Horizon Ridge Parkway, and is planned for 500+ homes on semi-custom and custom home lots.

It features an 18-hole golf course designed by Jay Morrish and David Druzisky, completed in

2001. This 18-hole private course has an open guest policy and is surrounded by custom homes

and custom home lots ranging from about one-third of an acre to over 2 acres.

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Features of this community include a 27,000-square-foot clubhouse, planned to be completed in

2003, which will offer a golf shop, exercise facility, swimming pool, tennis courts and dining, as

well as various community parks and hiking trails. Additional community amenities will include

three parks encompassing 10 acres, featuring tennis, basketball and volleyball courts; play areas;

and picnic facilities. Five miles of fitness trails are also planned in the foothills of Black

Mountain.

Seven Hills is located a mile south of Lake Mead Drive at Eastern Avenue. This 1,300 acre

master-planned community has been developed in two villages, with one oriented to an 18-hole

golf course. The community, upon final build-out, will have 3,600 units, with 735 units in the

golf-oriented portion. The residential projects include rental apartments, detached units, and

custom home sites. Amenities include a golf course, 26 neighborhoods, parks, and discovery

trails. The focal point of this community is Rio Secco, a 72-par championship golf course. One-

third of the total area has been allocated to open area, which includes golf, trails and common

areas.

Anthem is an approximate 5,000 acre community located in southern Henderson, southeast of

Seven Hills and features Sun City Anthem (age-restricted 55 and up), and Solera, a moderately-

priced community within Sun City Anthem, Anthem Country Club (a gated golf course

community), as well as Anthem Highlands, a traditional "family" community with a variety of

single-family homes covering a spectrum of product and prices.

Serving the Sun City residents is the 77,000 square foot Anthem Center clubhouse located at the

high point of the area with commanding views of the Las Vegas Valley. This facility provides a

high-quality environment for a large variety of activities and amenities. Included within the

Anthem Center are: restaurant, a fitness/exercise/wellness center, indoor walking track, indoor

and outdoor pools and spas (handicap accessible), tennis center, ballroom/meeting rooms, studios

for various crafts and activities, bocce ball, billiards, and a library, among others. In 2005,

Independence Center, housing the 300-seat Freedom Hall Theater and SCA-TV studios was

completed at the corner of Anthem Parkway and Hampton Road. Sun City also features The

Revere Gold Club, which offers 2 professional 18-hole golf courses; the Lexington and the

Concord.

The Anthem Country Club community features a gated entry, a Hale Irwin/Keith Foster-

designed golf course and a 33,000 square foot clubhouse housing a dining room, the Club Grille

& Sports Bar and a pro shop, among other features. Anthem Country Club also has a 13,700

square foot athletic club with tennis courts, a six-lane lap pool, resort and wading pools, spa,

volleyball and a poolside cafe. This is an exclusive guard gated private golf neighborhood of

upper end production homes and custom home lots.

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Anthem Highlands and Madeira Canyon are more recent developments at the southern end of

Anthem. These communities offer a variety of single family homes, including the Club at

Madeira, a guard gated community with over 500 homes of 2,500 to 4,800 square feet and prices

averaging over $500,000. Amenities include a clubhouse, swimming pool, tennis courts and

recreational facilities.

Inspirada is a 1,950-acre master planned community located south of the Henderson Executive

Airport and west of Sun City Anthem and Anthem Highlands planned for approximately 15,500

residential units. This development was envisioned as a New Urbanist community which was

designed to capture an “old town” feeling where residents can walk to work, schools, churches

and parks. The development is planned for residential, commercial, mixed-use, and casino

components, and there has been many new residential communities under construction, as well

as roadways and recreation centers with community centers, pools and sports fields.

Residential Market

Recent single family residential market statistics for Henderson and the Las Vegas area are

presented below.

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Accessibility

Accessibility is considered good to most portions of the neighborhood. The US 95 Freeway,

Lake Mead Drive, Boulder Highway, and the I-215/Las Vegas Beltway are the major traffic

thoroughfares for this area and provide good accessibility in and around the market area. The

Las Vegas Beltway “flyover” interchange with US 95 at Lake Mead Parkway provides

uninterrupted traffic flow between the two freeways. The extension of the I-215/Las Vegas

Beltway along Lake Mead Parkway and the interchange with US 95 greatly improves access

throughout Henderson and has helped increase the development in the neighborhood. In

addition, the interchange at St. Rose Parkway and Interstate 15, which opened in 2008, and the

widening of St. Rose Parkway to eight lanes of traffic should satisfy the anticipated growth of

the area over the foreseeable future.

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Public Services

With the expansion of the residential base, schools, fire stations, and similar services have been

completed and/or are proposed in the neighborhood. Henderson has been approved for several

new schools, which will likely be located in the southern portion of the neighborhood where the

majority of the residential development is occurring.

Public utilities, police protection and other public services are available to meet the needs of the

neighborhood. As the residential base expands, additional services will be made available.

Conclusion

The City of Henderson has seen substantial growth in the past two decades and continues to

grow, albeit not at the rate seen in the 1990s and early 2000s. During that time Henderson was

the fastest growing city over 100,000 residents in the United States from 1990 to 1996.

Development has been primarily centered in the more than 25 master planned communities

which are predominantly residential with some associated commercial and service uses.

Residential uses include all types of product from entry level condominiums to high-end custom

homes. Commercial development and community services and roadways have been expanded

throughout the area and have for the most part, kept up with the expanding population and

employment base. The future outlook is considered positive with new development occurring

throughout the city, although primarily in the west and east portions where there is still available

vacant land.

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Demographics

Statistics published in the 2019 Las Vegas Perspective provide insight to the demographics of the

population in different neighborhoods of Las Vegas. This information is segmented by zip code,

which is considered to provide a good indication of the demographic profile for specific

locations. The table that follows indicates the general population statistics for the subject’s

neighborhood.

Zip Code Demographic Table

2018 Statistics

Zip Code Clark Co. 89014

Population (No. of Residents) 2,284,616 42,471

AGE

Under 18 23.3% 19.9%

18 to 24 8.7% 9.5%

25 to 34 14.7% 17.4%

35 to 44 13.9% 13.8%

45 to 54 13.0% 12.8%

55 to 64 11.8% 12.7%

65 and Over 14.7% 14.0%

Average Age 38.6 39.3

Median Age 37.9 38.0

EMPLOYMENT STATUS

Unemployment Rate  4.8% 7.4%

HOUSING UNIT DISTRIBUTION

Single Family 62.9% 44.3%

Condominiums 7.6% 12.0%

Townhouses 4.6% 5.5%

Plexes {2-4 Units) 2.2% 50.0%

Mobile Homes 2.7% 10.0%

Apartments 20.1% 37.6%

Total Housing Units 100.1% 100.0%

HOUSING/HOUSEHOLDS

Total Housing Units 866,225 17,899

Occupied Housing Units 812,412 17,362

Vacant Housing Units 56,028 537

Vacancy Rate 6.5% 3.0%

Owner 59% 45.8%

Renter 41% 54.2%

Average Household Size (Persons) 2.96 2.45

HOUSEHOLD INCOME

Income Less than $15,000 9.9% 9.5%

Income $15,000-$24,999 9.3% 8.0%

Income $25,000 - $34,999 10.5% 11.0%

Income $35,000 - $49,999 14.1% 16.8%

Income $50,000 - $74,999 18.8% 20.9%

Income $75,000 - $99,999 13.3% 12.3%

Income $100,000-$149,999 14.4% 12.7%

Income $150,000 - $199,999 4.8% 4.6%

Income $200,000 and Over 4.9% 4.1%

Average Household Income $76,712 $72,618

Median Household Income $57,946 $54,537 Source: Las Vegas Perspective 2019

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I N D U S T R I A L M A R K E T O V E R V I E W

The market overview addresses historic and current trends in the industrial real estate segment

within the Las Vegas metropolitan area. Various sources of market statistics were utilized in this

analysis, including Applied Analysis, Voit Real Estate Services, Colliers International, Restrepo

Consulting Group and Grubb & Ellis. The industrial market statistics presented in the tables

includes speculative and non-speculative incubator, flex, midbay, distribution, freestanding and

other.

The six types of industrial buildings categorized in the Voit Industrial Market Report - Quarterly

Market Survey, are briefly described as follows:

Incubator: 500 - 1,500 sf divisibility, minimal office, one roll-up door

Flex: 1,500 - 3,000 sf divisibility, 40% or more office build-out, one roll-up door, high visibility

Midbay: 5,000 - 15,000 sf divisibility, 10%-15% office build-out, dock high and grade level loading

Distribution: over 15,000 sf divisibility, 3%-5% office build-out, multiple docks and grade level loading

Free standing: single or dual user(s)

Other: tenant improvements to a non-conventional build-out

The Las Vegas market is segmented into submarkets which have the same general location

characteristics, including access, proximity to employment centers, municipal boundaries and

surrounding land uses. The segmentation of the building type and submarket provides the

opportunity to analyze specific segments of the industrial market.

Las Vegas Industrial Market Trends

The following table provides a summary of the primary statistics for the Las Vegas industrial

market in recent years.

Source: Colliers International

The Las Vegas industrial market has consistently gown over the previous 10 years. Lease rates

have also significantly increased over the previous 5 years.

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Absorption of space generally kept up with construction in 2017 - 2019, the total inventory

increased by over 14 million square feet while absorbing nearly 17 million square feet. This has

caused the overall vacancy rate to decline from 5.7% at the beginning of 2017 to one of its

lowest points of 4.0% in 2019. The following table charts this information in comparison to

lease rates.

Source: Colliers International

Current Industrial Market Statistics

The following table provides a snapshot of the Las Vegas industrial market based on the most

recent survey from Colliers International.

Las Vegas Industrial Market 2nd Quarter 2020

In the 2nd Quarter of 2020, approximately 4,892,000 square feet of new industrial space is under

construction, with 11,333,000 square feet of planned industrial space. This is similar to nearly

15.8 million total square feet of both planned and under construction one year prior.

The sales volume has increased over the previous 5 years with increasing average sales prices

and stable cap rates. Additional economic indicates from the most recent Colliers report is

indicated in the following graph.

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Industrial Market Summary

The following includes excerpts from the Colliers Las Vegas Market Report in regard to the

Industrial market:

“Southern Nevada’s industrial market posted 2,036,052 square feet of net absorption in the

second quarter of 2020, an improvement over last quarter and higher than one year ago.

Industrial vacancy increased in the second quarter, but remained low at 4.5 percent. The

weighted average asking rate decreased by $0.01 to $0.71 per square foot (psf) on a triple net

(NNN) basis. The business closures enacted in March 2020 has apparently bifurcated the

industrial market, with large warehouse/distribution properties seeing continued strong net

absorption while other property types struggled.

According to the Nevada Department of Employment, Training and Rehabilitation, Southern

Nevada’s industrial job market lost 5,200 jobs between May 2019 and May 2020. Over this

period, Southern Nevada added 3,200 jobs in construction, but lost 5,200 jobs in the

transportation and warehousing, 3,100 jobs in wholesale and 100 jobs in manufacturing.

Unemployment in the Las Vegas-Paradise MSA was 33.5 percent in April 2020, compared to 4.0

percent in April 2019. From May 2019 to May 2020, total employment in Southern Nevada

decreased by 220,300 jobs, a 10.8 percent decrease. May 2020 numbers were slightly better than

April 2020 numbers, which suggests that the Valley could be seeing recovery from the

employment devastation caused by the COVID-19 business closures that began in March 2020.

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New completions of industrial space in the second quarter of 2020 totaled 777,181 square feet.

The majority of the industrial space completed this quarter was warehouse/distribution space

located in North Las Vegas. Approximately 64 percent of this space was preleased at completion.

An additional 2.8 million square feet of industrial space is scheduled for completion in the third

quarter of 2020, with approximately 33 percent of this space preleased.

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Industrial net absorption was 2,036,052 square feet in the second quarter of 2020, an increase

from one year ago when net absorption was 1,831,220 square feet. The Valley’s highest net

absorption this quarter was in North Las Vegas, at 2,343,153 square feet, followed by the West

Henderson submarket at 154,291 square feet. Net absorption was negative in most other

submarkets, with Southwest experiencing the lowest net absorption, negative 186,568 square

feet. Net absorption was 2,571,233 square feet in warehouse/distribution, negative 172,018

square feet in light distribution, negative 265,375 square feet in light industrial, negative 97,414

square feet in incubator and negative 374 square feet in flex properties.

Southern Nevada’s industrial vacancy rate increased to 4.5 percent in the second quarter of 2020.

The Valley’s lowest vacancy rate was 1.7 percent in the Henderson submarket. The Valley’s

highest vacancy rate was 8.2 percent in rapidly expanding West Henderson, followed by 6.3

percent in North Las Vegas. Among product types, vacancy was lowest in light distribution

properties at 3.4 percent, followed by light industrial at 3.6 percent, 5.1 percent in

warehouse/distribution, 5.2 percent in flex and 6.1 percent in incubator properties.

The industries most active in occupying space in the second quarter of 2020 were involved in

manufacturing (36.3 percent), wholesale (22.4 percent) and transportation and warehousing (12.6

percent). Local companies took 31.5 percent of the leased square footage we tracked in the

second quarter of 2020. Companies headquartered in the Midwest took 29.7 percent of the space

occupied, followed by the Northeast U.S. at 20.3 percent and Southwest U.S. 15 percent.

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The weighted average asking rate for industrial product in Southern Nevada decreased in the

second quarter of 2020. The weighted average asking rate was $0.71 psf, a $0.01 increase from

one quarter ago, and a $0.04 decrease from one year ago. Asking rates increased by $0.03 psf in

flex properties, $0.02 psf in light industrial properties and remained flat in

warehouse/distribution properties. Asking rates decreased by $0.09 psf in incubator and $0.05

psf in light distribution properties.

Industrial investment sales in the second quarter of 2020 showed an improvement over 2019, and

were on par to match the recent high point in investment sales in 2018. Sales volume was $447.1

million in 39 sales totaling 3,343,000 square feet at an average sales price of $130.19 psf. The

average cap rate increased to 7.7 percent from last year’s 6.3 percent, and the average size of a

sold property increased to 88,000 square feet.

The second quarter of 2020 managed to produce over 2 million square feet of industrial net

absorption despite the business closures that began in March 2020. The business closures took a

serious toll on the local economy, with Southern Nevada losing more than 220,000 jobs since

May 2019. The loss of jobs, and the loss of occupied industrial space, was not felt evenly in the

market. Warehouse/distribution product posted all of the Valley’s positive net absorption in the

second quarter of 2020. Other industrial product types, which rely more heavily on small

businesses, suffered negative net absorption. While it is likely that warehouse/distribution

demand will remain relatively strong through the remainder of 2020, it is unknown how quickly

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small businesses will recover. By the end of 2020, we may see an overall positive industrial

picture that nevertheless obscures the challenges faced by many landlords of non-

warehouse/distribution properties in the Valley.

Industrial Submarkets

According to Colliers International, Las Vegas is divided into seven industrial submarkets that

have specific characteristics. The following map delineates the boundaries of each submarket.

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The following table delineates the characteristics of the individual submarkets throughout the

Las Vegas Valley.

Las Vegas Industrial Submarkets 2nd Quarter 2020

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Conclusion

The Las Vegas industrial market has improved over the past 5 years, with vacancy decreasing

below 5%. We have been in complete recovery from the recessions in 2007. As indicated in the

following tables, capitalization rates in the Las Vegas market as well national rates have

continued to improvement with signs of stabilization, after a period improving rates over recent

years.

PwC Real Estate Investor Survey

The occupancy levels for this product type has been relatively consistent in recent years, a trend

that will likely extend to second-tier markets such as Las Vegas over the next few years,

assuming a short-term affect from COVID-19.

Overall based on the provided market data, the industrial market is toward the end of the period

of recovery from the previous recession with positive signs of improvements.

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P R O P E R T Y T A X E S A N D A S S E S S O R ’ S V A L U E S

The State of Nevada employs a millage structure for real estate taxation. Nevada Revised

Statutes require that all property be valued every five years based on a "Replacement Cost"

approach. The Assessor's Office determines the cost necessary to replace an improvement, less

depreciation. The land value is also included, based upon market sales.

During non-reevaluation years, the values are updated every year by an Index computed by the

State Department of Taxation. Current Nevada law requires that all property be factored each

year to reflect the increased cost of construction. This factor varies by location and type of

property. The assessment ratio is 35% as defined in NRS 361.225. In addition, each property

also has a "Computed Taxable" value that cannot exceed the full cash value.

The State of Nevada operates on a fiscal basis with a fiscal year which begins on July 1st and

ends on June 30th of the following calendar year. In Clark County there are a number of tax

districts. The tax rates for each of these districts are based on the amount of monies budgeted to

them for the necessary maintenance and improvements of their facilities and services. The

monies collected must pay for schools, roads, police, and fire protection, along with the other

services that a taxpayer expects from the local government. The tax rates vary depending on the

type of services provided to a particular area.

A comparison of cities of comparable size to those in the Las Vegas Valley shows that Las

Vegas and Clark County have some of the lowest property tax burdens in the western United

States. This helps attract new residents and businesses to the area.

The subject property consists of a legal parcel located in tax area 505 (Henderson), which has a

tax rate for fiscal year 2020/2021 of 2.9291%. The subject’s current assessment and estimated

tax obligation is indicated in the table below.

Clark County Assessment and Cap Reduction Information

APN Land Improvements Total Taxes as

Assessed

Less Cap

Reduction Net Taxes

161-32-712-013 $18,784 $42,860 $61,644 $1,805.61 $355.73 $1,449.88

The Nevada Legislature passed a property tax relief measure in the Spring of 2005 to curb the

impact of rapidly escalating property values. The law limits the amount that taxes can increase

from one year to the next. The tax increases are capped at 3% for owner/occupied homes and a

6.7% cap on most other properties, including the subject. The subject property’s tax liability has

been reduced in the current tax year.

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According to the Clark County Treasurer’s office, as of September 25, 2020, the subject does not

have delinquent taxes. The value conclusion in this appraisal assumes that the taxes have been

paid in full, and there are no outstanding taxes due.

Additional Clark County assessor’s and treasurer’s information for the subject property is located

in the Addenda to this report.

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ASSESSOR’S PARCEL MAP

SUBJECT

SUBJECT

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S I T E D E S C R I P T I O N

Configuration and Size

The subject site includes a 0.16-acre parcel located within the interior of the Green Valley

Industrial Park, along the south side of Whitney Mesa Drive, east of Mountain Vista Street. The

site is near rectangular in shape with roughly 109 feet in a north/south direction and 66 feet in an

east/west direction.

Topography and Flood Hazard

The subject property is generally flat and level with the surrounding properties and adjacent

roadways. According to the FEMA Flood Insurance Rate Map (FIRM) 32003C 2580F, the

subject property is in Zone X, an area determined to be outside the 0.2% annual chance

floodplain. There were no obvious signs of any significant flood hazards that affect the subject

property and none were reported to us during the course of this assignment. It is an assumption

of this report that the subject is not affected by any atypical flood hazards or conditions which

would adversely affect the market value or development potential of the property. A copy of the

flood map is located in the Addenda to this report.

This parcel IS NOT in a 100-year flood zone.

Parcel 16132712013

Owner LEE PROPERTIES NEVADA INC

Address 1961 WHITNEY MESA

Entity Henderson

Contact 702-267-3058

Flood Zone This parcel IS NOT in a 100-year flood zone.

FIRM Panel View FIRM Panel (2580)

LOMR This parcel is not affected by a LOMR

SUBJECT

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Soils and Subsoil

A soil report for the property was not provided to us during the course of this assignment. Based

upon a physical inspection of the property, as well as a review of various maps and site plans,

there are no obvious signs of any significant adverse soil conditions on the subject property. In

addition, no adverse soil conditions were reported to us during the course of this assignment.

Overall, there is no evidence of any adverse soil conditions that would affect the market value or

development potential of the subject property. However, we are not qualified professionals in

this field, and therefore; cannot provide a valid determination of the soil conditions. It is

assumed the soils are capable of supporting a variety of utilizations and developments.

Easements and Encroachments

A title report was not provided for our review and no adverse easements or encroachments were

noted. Based upon a physical inspection of the subject property, the subject is encumbered by

various utility easements, which are typical for industrial buildings in the area. The existing

easements are common to the neighborhood and do not adversely affect the value of the

property. The following describes the easement derived from the deed.

The easements that exist on the subject property are typical for the area and do not significantly

affect the development potential or highest and best use of the property.

Environmental Conditions

A Phase I Environmental Site Assessment was not provided to us. Based upon a physical

inspection of the subject property, there does not appear to be any significant adverse

environmental conditions that are obvious and would affect the market value of the property. In

addition, there were no reported adverse conditions on the subject site, or any adjacent sites.

However, we are not professionals in this field and are not qualified to determine environmental

hazards or conditions. Therefore, we take no responsibility to the existence of any known or

unknown environmental hazards or conditions that may exist on the subject property (see

Assumptions and Limiting Conditions #8).

Seismic Hazard

The Nevada Bureau of Mines and Geology has published a map of known faults and fissures in

the area. Fault scarps are common in the Las Vegas Valley; yet, horizontal or vertical land

movement is generally low. According to consulting geologist Dr. Burton Slemmons, in “Land

Subsidence in Las Vegas”, faults of Las Vegas Valley have low rates of activity with recurrence

intervals of about 10,000 years or more; greatly lower than the 150-300 years for the San

Andreas, Hayward, and Calaveras faults of California.

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Nevada has no regulations for determining earthquake hazard/risk for a specific site, although

Clark County has adopted Uniform Building Code (Zone 2B) requirements, which include

foundation-wall-roof anchoring and steel reinforcement provisions.

Utilities

All public utilities are available and at adequate capacity to accommodate a wide variety of

potential developments, including the existing building improvements. They are provided by the

following:

Electricity: NV Energy

Natural Gas: Southwest Gas Company

Water: Las Vegas Valley Water District

Sewer: Clark County Sanitation District

Telephone: CenturyLink Communications

Disposal: Republic Services

Street Improvements and Access

The subject property is located within the interior of the Green Valley Industrial Park, along the

south side of Whitney Mesa Drive, east of Mountain Vista Street. Access to the subject is

provided from reciprocal access agreements within the development. The development is

accessed by two sets of curb cuts located along Whitney Mesa Drive. Whitney Mesa Drive is a

two lane 60-foot wide roadway, which has a signalized intersection with Mountain Vista Street,

roughly one-quarter mile to the west. Mountain Vista Street is secondary neighborhood arterial,

which intersects with Russell Road roughly one mile to the north and continues throughout

residential communities also intersecting with Tropicana Avenue and Flamingo Road. Mountain

Vista Street turns into and intersects with Sunset Road roughly one-half mile to the south, which

traverses the southern portion of the Las Vegas Valley. The nearest freeway interchanges are at

US Highway 95 via Tropicana Avenue roughly 2 miles to the northwest and via Russell Road

roughly 2 miles to the east. Overall, access to the subject property is considered to be average.

Zoning

The subject property is currently zoned IL, Limited Industry District with the City of Henderson.

The IL district is established to provide areas appropriate for low-intensity industrial uses

including light manufacturing, warehousing and distribution, research and development, and

commercial services, and to protect these areas, to the extent feasible, from the disruption and

competition for space from unrelated retail uses, primary office uses, and general industrial uses.

Conversion of buildings and sites to general office use is permitted only as expressly stated in

this Development Code. Secondary accessory office uses on the site are allowed.

Additional information on this zoning designation is located in the Addenda to this report.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 45

D E S C R I P T I O N O F I M P R O V E M E N T S

The subject is an existing single-tenant industrial building built with 2,400 square feet of

building area. The building includes roughly 480 square feet of office space, which is generally

and open space, and a 2-fixture restroom. The public entrance to the building is situated at the

north side of the building structure via a single glass doorway. There is a grade level doorway

along the west side of the building providing access to the warehouse area from the enclosed

storage yard, and one additional grade level door along the north side of the building. The yard

area includes nearly 2,000 square feet.

In addition, the warehouse also includes roughly 400 square feet of open mezzanine storage

space above the office. The mezzanine is accessed via an interior stairwell in the warehouse.

Due to the quality of the space, it is not considered as part of the total building area is a

beneficial characteristic. The improvements were constructed in 2006 and are in an overall good

condition.

A complete set of building plans as well as a detailed list of the interior improvements were not

provided.

Type of Improvement Office/warehouse building

Number of Buildings One

Number of Stories One

Number of Units One

Year Built 2006

Building Size Office – 480 sf

Warehouse – 1,920 sf

Total - 2,400 sf

Percent Office 20% (480 SF/2,400 SF)

Site Coverage Ratio 34% (2,400 SF/7,000 SF)

Floor Area Ratio 34% (2,400 SF/7,000 SF)

Britton-Adamo Group/ROI Appraisal

File Number 20-086 46

Construction Components

Foundation Reinforced concrete slab

Structural System: Concrete block (CMU)

Roof: A flat built-up commercial roof.

Exterior Walls: Painted concrete

Interior Walls: The interior walls are wood-frame with painted, textured

and taped drywall in office and smooth concrete in

warehouse.

Building Height: 18’ (16’ clear height)

Floor Finish: Ceramic tile throughout the office and smooth concrete in the

warehouse

Plumbing: There is one 2-fixture restroom.

Sprinklers: Yes

Electricity: Commercial grade that is assumed to meet code.

Ceilings & Lighting: Taped and textured drywall with fluorescent light fixtures

in office. Warehouse includes open beam with skylights

and hung metal halide bay light fixtures.

Interior & Exterior Doors: The entryway to the office area consist of glass in an

aluminum frame. The majority of the interior doorways are

wood in wood frames. The warehouse is served by two

external grade level doors.

Heating & A/C: Roof mounted package HVAC unit assumed to maintain

adequate year-round temperatures in office with swap

coolers in the warehouse areas.

Glass: There are storefront glass storefront windows along the

main building façade.

Parking: The subject property has 3 front parking stalls with

additional potential parking in the yard. The parking is

considered to satisfy the current development restrictions.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 47

Yard Improvements: There is minimal landscaping along the perimeter of the

development. The subject includes an enclosed storage

yard with a manual gate along the west side of the building.

Americans with Disabilities Act (ADA) Compliance

The Americans with Disabilities Act (ADA) became effective January 26, 1992. The appraisers

have not made a specific compliance survey and analysis of this property to determine whether

or not 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 the property. Since the

appraisers have no direct evidence relating to these issues, the appraisers did not consider

possible non-compliance with the requirements of ADA in estimating the value of the property.

Hazardous Materials

We are not aware of any potentially hazardous materials (such as formaldehyde foam insulation,

asbestos insulation, radon gas emitting materials, or other potentially hazardous materials) which

will be used in the construction of the improvements. However, we are not qualified to detect

such materials and urge the client to employ an expert in the field to determine if such hazardous

materials exist.

Construction Class/Economic Life

According to the Marshall Valuation Cost reference manual, the subject improvements are

classified as a good quality Class "C" Light Industrial/Warehouse Shell Building, with average

quality Industrial, Interior Office Space (Section 14, Page 35). The life expectancy tables in the

manual (Section 97) indicate an economic life of approximately 45 years for this type of

building.

Effective Age/Condition

The subject property was completed in 2006. The subject improvements have an actual age of

14 years. The overall subject improvements are considered to be in good condition, with an

effective age estimated to be below the actual age at 10 years, indicating a remaining economic

life of 35 years.

Functional Utility

The subject has a design and layout that is typical in the marketplace for a light industrial use,

and is not considered to have any significant functional inadequacies that would limit the

potential use of the property.

Economic Utility

There do not appear to be any external influences which negatively affect the subject property.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 48

H I G H E S T A N D B E S T U S E A N A L Y S I S

Highest and best use, as used in this report, is defined as follows:

“The reasonably probable use of property that results in the highest value. The four criteria that the highest

and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum

productivity.” Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015)

Highest and best use identifies the most profitable, competitive use to which a property can be

put. A property's highest and best use is determined by the competitive forces in the market in

which the property is located. It may or may not reflect the current or proposed use.

The four criteria the highest and best use must meet are physically possible, legally permissible,

financially feasible and maximally productive.

In this analysis, the highest and best use of the property as if vacant and as improved is

addressed. Each criteria identified in the preceding paragraph is considered.

HIGHEST AND BEST USE OF THE SITE AS VACANT

Physically Possible

The subject is situated on a 0.16-acre site located within the interior of the Green Valley Industrial

Park, along the south side of Whitney Mesa Drive, east of Mountain Vista Street, in the southeast

portion of the Las Vegas Valley, in the City of Henderson, Clark County, Nevada. The site is near

rectangular in shape with roughly 109 feet in a north/south direction and 66 feet in an east/west

direction. Access to the subject is provided from reciprocal access agreements within the

development.

The subject property is generally flat and level with the surrounding properties and adjacent

roadways. The site has full utility services available and at adequate capacity to accommodate

most potential developments. The soil conditions appear capable of supporting a range of

development, and the parcel is situated outside the 100-year flood zone. Additionally, no

adverse environmental conditions were noted at the time of inspection. The site offers adequate

utility to support a variety of developments. Overall, there does not appear to be any physical

constraints that would limit potential development of the subject property.

Legally Permissible

The subject property is currently zoned IL, Limited Industry District with the City of Henderson.

The IL district is established to provide areas appropriate for low-intensity industrial uses

including light manufacturing, warehousing and distribution, research and development, and

commercial services, and to protect these areas, to the extent feasible, from the disruption and

competition for space from unrelated retail uses, primary office uses, and general industrial uses.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 49

In conclusion, a variety of legally permissible industrial uses exist for the subject site.

Financially Feasible/Maximally Productive

Financial feasibility of the site as if vacant requires the analysis of uses, which have potential

both physically and legally. As stated previously, legally the development of the site is limited

to industrial uses. Of these potential uses, the use that is maximally productive and results in the

highest net present value is the maximally productive use of the site.

The subject property is located within the interior of the Green Valley Industrial Park, along the

south side of Whitney Mesa Drive, east of Mountain Vista Street. Access to the subject is

provided from reciprocal access agreements within the development. The development is

accessed by two sets of curb cuts located along Whitney Mesa Drive. Whitney Mesa Drive is a

two lane 60-foot wide roadway, which has a signalized intersection with Mountain Vista Street,

roughly one-quarter mile to the west. Mountain Vista Street is secondary neighborhood arterial,

which intersects with Russell Road roughly one mile to the north and continues throughout

residential communities also intersecting with Tropicana Avenue and Flamingo Road. Mountain

Vista Street turns into and intersects with Sunset Road roughly one-half mile to the south, which

traverses the southern portion of the Las Vegas Valley. The nearest freeway interchanges are at

US Highway 95 via Tropicana Avenue roughly 2 miles to the northwest and via Russell Road

roughly 2 miles to the east. Overall, access to the subject property is considered to be average.

Considering the subject’s location in an industrial project, and the physical and legal constraints,

an industrial use is considered feasible.

The Las Vegas industrial market has historically performed well in terms of low vacancy rates,

positive net absorption, and lease rates. The demand for industrial space has been increasing

over the previous five years, which is reflected by the increasing absorption. The expectations

for the long-term are optimistic.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 50

According to the Colliers International, the subject is located in the Henderson submarket. The

following table provides the current industrial market statistics for this area.

Henderson Submarket 2nd Quarter 2020

The Henderson submarket is one of the largest in Las Vegas, comprising of over 14 million

square feet of industrial inventory, or 13% of the entire Las Vegas market. The Henderson

submarket had a positive absorption of roughly 30,907 square feet in the 2nd Quarter of 2020,

resulting in a total positive absorption of 19,184 square feet in 2020.

The total submarket absorption for the previous 5 years is indicated in the following table:

Year Absorption SF

2015 +213,000

2016 +224,000

2017 +620,687

2018 +1,736,968

2019 +310,578

The vacancy rate in the submarket is 2.0%, below the 2nd Quarter of 2019 at 3.6%. The current

vacancy rate is below the Las Vegas market vacancy rate of 5.2%. The average lease rate has

remained stable over the previous year in the submarket, from $0.77 per square foot to the

current rate of $0.80 per square foot.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 51

There has been no new inventory added to the market in 2020. The total submarket new

inventory for the previous 5 years is indicated in the following table:

Year Added Inventory SF

2015 28,000

2016 685,000

2017 240,000

2018 1,900,930

2019 75,000

In addition, there is nearly 1.1 million square feet of industrial space under construction with no

new space under construction. Most of the new space is in the west Henderson area of the

submarket and includes large distribution space that does not compete with the subject.

The long-term viability of the Henderson area is considered good due primarily to the

accessibility and proximity to transportation routes and employment centers. As less new

construction occurs in the industrial market, and absorption improves, the markets will continue

to stabilize.

COVID-19 Market Indicators

Continuing from the Colliers Market Report, the following are excerpts from the general market

conditions:

“The strong start Southern Nevada’s economy had in 2020 has been more then reversed in the

past three months due to the business closures enacted to slow the spread of the COVID-19

virus. Job losses so far this year have been staggering, though there is hope that the re-opening of

businesses in May and of hospitality properties in June will mean an equally impressive rebound

in employment.

Unemployment in the Las Vegas-Paradise MSA was 33.5 percent in April 2020, 29.5 points

higher than in April 2019. Unemployment last peaked in Southern Nevada at 14 percent in

January 2011. The region’s previous low unemployment rate was 3.8 percent in March 2019.

The latest national unemployment figure was 13.3 percent in May 2020, 9.7 points higher than in

May 2019. The national labor force participation rate was 60.8 percent in May 2020, a 2 percent

decrease from one year ago.

From May 2019 to May 2020, employment in Southern Nevada decreased by 220,300 jobs to

816,300 jobs. This was roughly the lowest number of jobs in Southern Nevada since October

2011, and represented 21.3 percent annual growth. On a year-over-year basis, the majority of

new jobs lost in Southern Nevada in May 2020 were in leisure and hospitality (-122,400 jobs),

professional and business services (-32,600 jobs), retail (-24,000 jobs), education and health

services (-14,800 jobs), other services (-7,800 jobs), transportation and warehousing (-5,200

Britton-Adamo Group/ROI Appraisal

File Number 20-086 52

jobs), government (-4,600 jobs), wholesale (-3,100 jobs), information (-2,500 jobs), financial

activities (-500 jobs) and manufacturing (-100 jobs). Jobs were added in construction (+3,200

jobs) and natural resources (+100 jobs).

According to Home Builders Research, 3,083 new homes sold in the first four months of 2020, a

2.65 percent decrease from the same period in 2019. The median price for new homes decreased,

year-over-year, by 3.2 percent in April 2020 to $377,500. The Greater Las Vegas Association of

Realtors reported that 9,482 existing homes sold in the first four months of 2020, a 2.2 percent

increase from the same period in 2019. The median price for existing homes increased, year-

over-year, by 3.3 percent in April 2020 to $310,000.

Hospitality statistics in Southern Nevada were profoundly impacted by the closure of the

Valley’s hotels, motels and resorts. Visitor volume in Southern Nevada was posted negative 97

percent year-over-year growth in April 2020, the most recent quarter for which data is available.

April 2020 saw 106,900 people come to Southern Nevada year-to-date, compared to 3.5 million

people visiting in April 2019.

Gaming revenue totaled $2.4 billion year-to-date in April 2020, a 31.7 percent decrease from

2019. Gaming revenue growth this year was negative 31.8 percent on the Las Vegas “Strip”,

negative 31.2 percent in Downtown Las Vegas and negative 29.5 percent on the Boulder Strip.

Commercial real estate investment sales volume in the first two quarters of 2020 was $885.4

million in 108 sales totaling 5.2 million square feet. The average price per square foot for

commercial property was $170.46, a 1.5 percent increase over the same period in 2019. The

overall cap rate for commercial space in 2020 was 6.3 percent, compared to 6.7 percent in 2019.

Sales volume decreased by 30.9 percent for industrial properties, 44.9 percent for office

properties, 50.8 percent for medical office, 59.9 percent for shopping centers and 87.4 percent

for single-tenant retail.

One can almost look at 2020 as a mad experiment in what happens to an economy when much of

it is closed for a few months. The results are quite convincing that business closures are bad for

business, with many data points so astoundingly dire as to be almost unbelievable. The closures

were made, of course, to slow the spread of COVID-19, and were successful in that. The

reopening of the economy was made to prevent a very serious economic recession. Whether the

reopening has been successful in that is as yet unknown. Economic data is not published as

quickly as one would like, especially in the current economy, but some data that has already been

released, and some anecdotal points, are encouraging. Job losses were expected to be much more

severe in May than they ultimately were. In addition, retail spending in the United States was

quite strong in May 2020. Anecdotally, we have seen more Southern Nevada resort re-openings

in June 2020 than was originally planned, presumably because demand for their services was

higher than expected. As the year proceeds, we will learn more about the nascent economic

Britton-Adamo Group/ROI Appraisal

File Number 20-086 53

recovery of 2020. In the meantime, there is little to do but get back to work.”

Overall, the current economic and market conditions warrant limited new speculative

development and new development should not be started at the present time, unless financial

commitments (i.e. long term lease, build-to-suit, etc.) can be obtained prior to construction.

Therefore, the highest and best use of the subject, assuming a vacant site, is to hold for

development, until economic conditions warrant construction. The timeframe for development is

uncertain.

Conclusion of Highest and Best Use “As If Vacant”

Based on the above analysis, the highest and best use of the site “as if vacant” is to hold for an

industrial development, when market conditions dictate.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 54

HIGHEST AND BEST USE AS IMPROVED

The discussion that follows will examine the highest and best use of the subject given the

existing building improvements. The same factors used to analyze the highest and best use as if

vacant (i.e. physically possible, legally permissible, financially feasible, and maximally

productive are considered.

Physically Possible

The subject is an existing single-tenant industrial building built with 2,400 square feet of

building area. The building includes roughly 480 square feet of office space, which is generally

and open space, and a 2-fixture restroom. The public entrance to the building is situated at the

north side of the building structure via a single glass doorway. There is a grade level doorway

along the west side of the building providing access to the warehouse area from the enclosed

storage yard, and one additional grade level door along the north side of the building. The yard

area includes nearly 2,000 square feet.

In addition, the warehouse also includes roughly 400 square feet of open mezzanine storage

space above the office. The mezzanine is accessed via an interior stairwell in the warehouse.

Due to the quality of the space, it is not considered as part of the total building area is a

beneficial characteristic. The improvements were constructed in 2006 and are in an overall good

condition.

The indicated effective site coverage ratio based on the building foot print is 34% (2,400 SF ÷

7,000 SF) and floor area ratio is 34% (2,400 SF ÷ 7,000 SF) , and based on the design and layout

of the property, there is no excess land available for additional building structures or an

expansion of the existing building improvements. Overall, the improvements are a physically

possible use of the site.

Legally Permissible

The subject appears to satisfy the development restrictions imposed by the IL zoning ordinance

in regards to building setbacks, parking and landscaping requirements. Overall, the

improvements are a legally permissible use.

Financially Feasible/Maximally Productive

The subject improvements are designed for a single-tenant use that has a need for both office and

warehouse areas. The property includes an enclosed storage yard area. There are two grade-

level doorways, one of which accesses the yard directly. The property is occupied by an owner-

user, typical for the market area. Based on the characteristics of the building will likely continue

as a single-tenant building. There are a number of industrial buildings in the immediate market

area that have been generally designed in a similar fashion and are being utilized by a variety of

Britton-Adamo Group/ROI Appraisal

File Number 20-086 55

industrial users similar to the subject. The configuration of the building shell is considered to

maximize the site. The office area is functional for a variety of light industrial users.

Given the physically and legally possible uses, an industrial building is considered to generate

the greatest return to the land. This use is considered well suited to the location of the subject

and the local market. The size and layout of the improvements are well suited to a variety of

prospective end users. It is unlikely that any alternative use is more financially feasible.

Conclusion of Highest and Best Use “As Improved”

The subject’s highest and best use is for the continued use as an industrial building. This

program of utilization produces the greatest return to the land component, above and beyond

alternative physically possible, legally permissible, and financially feasible uses.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 56

M E T H O D O F V A L U A T I O N

Valuation Approaches

There are three standard approaches to valuing properties. These are the cost approach, the sales

comparison approach, and the income capitalization approach. The type and age of the property

and the quantity and quality of data affect the applicability of each approach for a specific

appraisal problem.

The cost approach is based upon the principle that an informed purchaser would pay no more

than the cost to produce a substitute property with the same utility as the subject property. It is

particularly applicable when the property being appraised involves relatively new improvements

which represent the highest and best use of the land or when specialized improvements are

involved and limited comparable sale data is available.

The sales comparison approach utilizes prices paid in actual market transactions of similar

properties to estimate the value of the subject. This appraisal technique is dependent upon

analyzing truly comparable sales which have occurred recently enough to reflect market

conditions relative to the time period of the subject appraisal.

The income approach is widely applied in appraising income producing properties. Anticipated

net operating income is converted to a present worth through the capitalization process. The

income approach also relies upon market data to establish current market rents and expense

levels to arrive at an expected net operating income.

The resulting indications of value from the three approaches are correlated into a final estimate

of value for the subject property. It is not always possible or practicable to use all three

approaches to value. The nature of the property being appraised, and the amount, quality, and

type of data available dictates the use of each of the three approaches.

Subject Valuation Scenario

The purpose of this appraisal is to estimate the market value “as is” of the subject property. To

estimate the current market value, the sales and income comparison approaches are utilized in

the valuation. Following the approaches, the value conclusion is reconciled by the various

conclusions from the different of the various approaches to value.

The cost approach is not considered to provide a reasonable indication of value as the current

economic conditions are such that the value of a completed office building in the market area is

below the replacement costs. In addition, potential buyers would likely not rely on this method

to value this type of property. The exclusion of the cost approach does not diminish the

credibility of the value conclusion in this appraisal. Therefore, the cost approach is not

considered necessary to the assignment. The conclusions from the sales and income approaches

are reconciled to a final value conclusion at the end of the report.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 57

S A L E S C O M P A R I S O N A P P R O A C H

The Sales Comparison Approach is based upon the principle of substitution. The principle of

substitution holds that the value of a property is relative to what can be paid to acquire a

substitute property that has a similar utility and desirability within a reasonable time period.

Since two properties are rarely identical, a comparative analysis of the sales and the subject must

be made.

The Sales Comparison Approach gives consideration to actual sales of similar properties with

consideration of adjustments as previously stated. The sales prices are analyzed in a common

unit of comparison and the resulting value after any adjustments can be applied to the subject

property to provide a market value indication.

The unit of comparison used in this analysis is the price per square foot of building area, which is

the purchase price of the property divided by the total building area (SF) of the improvements.

The sales utilized are considered the best available for comparison purposes and representative

of the market activity and conditions as of the valuation date. Unless otherwise indicated, the

sales involved arm's length transactions.

Sale data used in this approach has been gathered through a search of various sources, including

CoStar, subscription databases, public records, as well as information obtained from other

appraiser and real estate professionals in the marketplace. The sales used in this analysis are

believed to be the best available for comparison purposes to the subject. A summary of the

improved sales, and a map indicating their location in comparison to the subject, is located on the

following page, and further details of the transactions are on the pages that follow.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 58

IMPROVED SALES MAP AND SUMMARY TABLE

SUBJECT SALE 1 SALE 2 SALE 3 SALE 4 SALE 5 SALE 6 SALE 7

Address

1961

Whitney

Mesa Dr

112 Cassia

Wy

1975

Whitney

Mesa Dr

6041

McLeod Dr

6676

Escondido St

169 N.

Gibson Rd

517 W.

Sunset Rd

98 Corporate

Park

City/Zip Henderson

89014

Henderson

89014

Henderson

89014

Las Vegas

89120

Las Vegas

89119

Henderson

89014

Henderson

89011

Henderson

89074

Submarket Henderson Henderson Henderson Airport Airport Henderson Henderson Henderson

Sale Date - 12/9/19 3/12/20 3/26/20 6/16/20 6/26/20 9/1/20 9/25/20

Sale Price - $818,000 $410,000 $1,050,000 $1,281,540 $875,000 $1,075,000 $1,345,000

Building Size (SF) 2,400 4,368 2,400 5,026 6,045 4,616 5,800 6,515

Year Built 2006 2007 2006 2004 2020 2005 2009 2007

Condition Good Good Good Good Excellent Good Good Good

Structure Masonry

CMU

Masonry

Tilt-Up

Masonry

CMU

Masonry

CMU

Masonry

Tilt-Up

Masonry

Tilt-Up

Masonry

Tilt-Up

Masonry

Tilt-Up

Building Height 18’ 22’ 18’ 21’ 22’ 20’ 24’ 25’

Office % 20%

(1-story)

15%

(1-story)

20%

(1-story)

22%

(1-story)

14%

(1-story)

19%

(1-story)

28%

(1-story)

35%

(2-story)

Net Land Size (SF) 7,000 12,197 5,633 10,019 Common 13,939 18,731 16,553

SCR 34% 36% 43% 49% Common 33% 31% 33%

Property Rights Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple

Financing - Market Market Market Market Market Market Market

Price per SF - $187.27 $170.83 $208.91 $212.00 $189.56 $185.34 $206.45

Yard 2,000 sf

Enclosed No Yard

1,000 sf

Enclosed

4,000 sf

Enclosed

4,000 sf

Enclosed Open Yard No Yard Open Yard

Conditions of Sale - None None None None None None None

Intended Use - Owner-User Owner-User Owner-User Owner-User Owner-User Owner-User Owner-User

Britton-Adamo Group/ROI Appraisal

File Number 20-086 59

IMPROVED SALE #1

Project Name: Black Mountain Pointe

Address: 112 Cassia Wy

Henderson 89014

Assessor’s Parcel Number: 178-14-211-015

Sale Date: 12/9/19

Document Number: 20191209:03298

Buyer: James and Karen Ticken

Seller: McBeath Holdings, LLC

Verification/Source: Listing broker: Mike DeLew - RealComm

Advisors, CoStar Group & Public Records

Sale Price: $818,000

Financing: Market

Interest Transferred: Fee Simple

Price per Square Foot: $187.27

Overall Capitalization Rate: N/A

Physical Characteristics:

Zoning: IG, Henderson

Building Area: 4,368 square feet (Clark County)

Percent Office: 15% (638 sf+/-, 1-story)

Construction Date: 2007

Basic Construction Masonry

Building Height 22 feet

Condition: Good

Land Area: 12,197 square feet

Site Coverage Ratio: 36%

Parking: 11 spaces

Comments: The property was purchased by an owner-user. No

yard. 2 GL doors.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 60

IMPROVED SALE #2

Project Name: Green Valley Industrial Park

Address: 1975 Whitney Mesa Dr

Henderson 89014

Assessor’s Parcel Number: 161-32-712-004

Sale Date: 3/12/20

Document Number: 20200312:02294

Buyer: Weist Ventures, LLC

Seller: Kelly Dunn

Verification/Source: Listing broker: Joe Griffis – Griffis Realty, CoStar

Group & Public Records

Sale Price: $410,000

Financing: Market

Interest Transferred: Fee Simple

Price per Square Foot: $170.83

Overall Capitalization Rate: N/A

Physical Characteristics:

Zoning: IL, Henderson

Building Area: 2,400 square feet (Clark County)

Percent Office: 20% (480 sf+/-, 1-story)

Construction Date: 2006

Basic Construction Masonry

Building Height 18 feet

Condition: Good

Land Area: 5,633 square feet

Site Coverage Ratio: 43%

Parking: 4 spaces

Comments: The property was purchased by an owner-user.

The property has a 1,000 sf enclosed yard and 2

GL doors. Includes mezzanine area.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 61

IMPROVED SALE #3

Project Name: Runway Park

Address: 6041 McLeod Dr

Las Vegas 89120

Assessor’s Parcel Number: 162-36-212-004

Sale Date: 3/26/20

Document Number: 20200318:02267

Buyer: The Frankola Family Trust

Seller: Andrew and Glenda Jackson

Verification/Source: Listing broker: Nick Abraham – Cushman &

Wakefield, CoStar Group & Public Records

Sale Price: $1,050,000

Financing: Market

Interest Transferred: Fee Simple

Price per Square Foot: $208.91

Overall Capitalization Rate: N/A

Physical Characteristics:

Zoning: M-1, Clark County

Building Area: 5,026 square feet

Percent Office: 22% (1,100 sf, 1-story)

Construction Date: 2004

Basic Construction Masonry

Building Height 21 feet

Condition: Good

Land Area: 10,019 square feet

Site Coverage Ratio: 49% (+common)

Parking: Common

Comments: The property was purchased by an owner-user.

The property does has a 4,000 sf secured yard

securing the 1 GL doors. 1,000 sf of mezzanine

storage no included in building area.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 62

IMPROVED SALE #4

Project Name: Escondido Airport Park

Address: 6676 Escondido St

Las Vegas 89119

Assessor’s Parcel Number: 177-02-111-006

Sale Date: 6/16/20

Document Number: 20200624:01542

Buyer: Brian Robertson

Seller: Escondido Investments, LLC

Verification/Source: Listing broker: Brian Riffel – Colliers International,

CoStar Group & Public Records

Sale Price: $1,281,540

Financing: Market

Interest Transferred: Fee Simple

Price per Square Foot: $212.00

Overall Capitalization Rate: N/A

Physical Characteristics:

Zoning: M-D, Clark County

Building Area: 6,045 square feet (Clark County)

Percent Office: 14% (1-story)

Construction Date: 2020

Basic Construction Masonry

Building Height 22 feet

Condition: Excellent

Land Area: 23,522 square feet

Site Coverage Ratio: Common

Parking: Common

Comments: The property was purchased by an owner-user.

Attached building. The property has an enclosed

yard of roughly 4,000 sf and 1 GL door.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 63

IMPROVED SALE #5

Project Name: Saddleback Gibson Business Park

Address: 169 N. Gibson Rd

Henderson 89014

Assessor’s Parcel Number: 178-15-511-037

Sale Date: 6/26/20

Document Number: 20200626:00439

Buyer: One Sixty Nine, LLC

Seller: NKS Gibson, LLC

Verification/Source: Buyer broker: Greg Pancirov – RealComm

Advisors, CoStar Group & Public Records

Sale Price: $875,000

Financing: Market

Interest Transferred: Fee Simple

Price per Square Foot: $189.56

Overall Capitalization Rate: N/A

Physical Characteristics:

Zoning: IG, Henderson

Building Area: 4,616 square feet (Clark County)

Percent Office: 19% (900 sf+/-)

Construction Date: 2005

Basic Construction Masonry

Building Height 20 feet

Condition: Good

Land Area: 13,939 sf

Site Coverage Ratio: 33%

Parking: 15 spaces

Comments: The property was purchased by an owner-user.

The property has an open yard and 1 GL door.

Purchased by tenant.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 64

IMPROVED SALE #6

Project Name: Sunset Pointe Industrial Center

Address: 517 W. Sunset Rd

Henderson 89011

Assessor’s Parcel Number: 178-02-710-014

Sale Date: 9/1/20

Document Number: 20200901:01555

Buyer: Curtis Property Management I, LLC

Seller: Sunset Pointe Group, LLC

Verification/Source: Listing broker: Greg Pancirov, CoStar Group &

Public Records

Sale Price: $1,075,000

Financing: Market

Interest Transferred: Fee Simple

Price per Square Foot: $185.34

Overall Capitalization Rate: N/A

Physical Characteristics:

Zoning: IG, Henderson

Building Area: 5,800 square feet (Clark County)

Percent Office: 28% (1,600 sf, 1-story)

Construction Date: 2009

Basic Construction Masonry

Building Height 24 feet

Condition: Good

Land Area: 18,731 square feet

Site Coverage Ratio: 31%

Parking: 15 spaces

Comments: The property was purchased by an owner-user. No

yard and 1 GL door.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 65

IMPROVED SALE #7

Project Name: Gibson Industrial Park

Address: 98 Corporate Park Dr

Henderson 89074

Assessor’s Parcel Number: 178-15-611-039

Sale Date: 9/25/20

Document Number: 20200925:01612

Buyer: G&AMP Investments, LLC

Seller: Jack Close

Verification/Source: Buyer broker: Andrew Levy – ERA Brokers,

CoStar Group & Public Records

Sale Price: $1,345,000

Financing: Market

Interest Transferred: Fee Simple

Price per Square Foot: $206.45

Overall Capitalization Rate: N/A

Physical Characteristics:

Zoning: IG, Henderson

Building Area: 6,515 square feet (Clark County)

Percent Office: 35% (2-story good office)

Construction Date: 2007

Basic Construction Masonry

Building Height 25 feet

Condition: Good

Land Area: 16,553 sf

Site Coverage Ratio: 33% (5,548 sf)

Parking: 12 spaces

Comments: The property was purchased by an owner-user.

The property has an open yard and 1 GL door.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 66

Adjustment Considerations

In order to arrive at a value conclusion for the subject via the sales comparison approach, it is

necessary to adjust the comparable sale prices for characteristics which are dissimilar than those

of the subject property. The appropriate sequence of adjustments is as follows:

• Property Rights Conveyed

• Terms of Sale

• Conditions of Sale

• Market Conditions

• Location

• Physical Characteristics (age/condition, quality, size, etc.)

Property Rights Conveyed

The subject property is being appraised in a fee simple interest. All of the sales were purchased

in a fee simple interest. Based on an analysis of the comparable sales, there is not considered to

be support for an adjustment for this factor.

Financing Terms of Sale

The market value estimate for the subject is on a cash or cash equivalent basis. The sales sold

for cash or its equivalent and no adjustment is necessary for terms of sale.

Conditions of Sale

Conditions that affect the sale prices include highly motivated buyers and sellers, transfer of

ownership between related parties, and listing prices. Some arms-length transactions may also

reflect atypical motivations, such as unusual tax considerations, lack of exposure to an open

market, or impending eminent domain proceedings. Examples of anything other than a typically

motivated buyer or seller are transfers of ownership between related parties or listing prices

(properties typically sell for less than their asking price).

None of the sales included atypical conditions of sale and no adjustments were applied.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 67

Market Conditions

The sales discovered occurred since December of 2019, within one year from the effective date

of value. The average vacancy trends and average lease rate trends for industrial space since the

respective sale dates is provided in the following tables.

Recent Industrial Trends

The number of sales of industrial properties in Las Vegas has remained relatively stable in the

past few years with capitalization rates declining since 2016. This data is summarized in the

following table.

PwC Real Estate Investor Survey

Britton-Adamo Group/ROI Appraisal

File Number 20-086 68

Occupancy Trends

Market 2Q2019 2Q2020 Avg. 1 Year Trend

Henderson 96.4% 98.0% 2%

Total 96.5% 94.8% -2%

Average Lease Rate Trends

Market 2Q2019 2Q2020 Avg. 1 Year Trend

Henderson $0.77 $0.80 4%

Total $0.74 $0.71 -4%

Source: Colliers Real Estate Market Report

Based on the potential effects of current pandemic as well as recent market trends, there is

evidence of stagnation and potential decline in certain commercial industries. The above data is

primarily reflective of industrial investment property trends however, the subject includes an

owner-user type product, which is a higher demand product considering competitive SBA rates

and scarcity in the market. Although there were some varying trends over the previous year,

there is limited support for a specific adjustment for this factor.

Location

The subject property is located within a secondary industrial area of the Henderson submarket.

All of sales are located within the subject’s immediate area as identified in the following table.

SUBJECT SALE 1 SALE 2 SALE 3 SALE 4 SALE 5 SALE 6 SALE 7

Address 1961 Whitney

Mesa Dr

112 Cassia

Wy

1975 Whitney

Mesa Dr

6041 McLeod

Dr

6676

Escondido St

169 N. Gibson

Rd

517 W. Sunset

Rd

98 Corporate

Park

City/Zip Henderson

89014

Henderson

89014

Henderson

89014

Las Vegas

89120

Las Vegas

89119

Henderson

89014

Henderson

89011

Henderson

89074

Submarket Henderson Henderson Henderson Airport Airport Henderson Henderson Henderson

Avg Rent $0.80 $0.80 $0.80 $0.81 $0.81 $0.80 $0.80 $0.80

Comparability - Sl. Superior Similar Sl. Superior Sl. Superior Sl. Superior Sl. Superior Sl. Superior

Sales 1, 5, 6 and 7 are located within the City of Henderson however, are within the primary

industrial area with superior accessibility. Based on an analysis of the comparable sales, there is

support for some downward consideration. It is noted a slightly varying adjustment is applied to

Sale 6 based on its specific location characteristics.

Sale 2 is located in the subject’s development and no adjustment is applied.

Sales 3 and 4 are located in the Airport submarket. Based on an analysis of the comparable

sales, there is support for downward adjustments to be applied.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 69

Physical Characteristics

Physical characteristics that are considered include size, access/exposure, improvement

age/condition, office build-out, quality and other factors.

Size

The subject property has a total building area of 2,400 square feet. Typically, larger buildings

sell for a lower price per square foot than smaller buildings, and vice versa. The following table

delineates the size and overall comparability to the subject.

SUBJECT SALE 1 SALE 2 SALE 3 SALE 4 SALE 5 SALE 6 SALE 7

Building Size (SF) 2,400 4,368 2,400 5,026 6,045 4,616 5,800 6,515

Comparability - Sl. Inferior Similar Sl. Inferior Sl. Inferior Sl. Inferior Sl. Inferior Sl. Inferior

Based on an analysis of the comparable sales, although there were noted differences in size, there

was support for a limited adjustment within this size range.

Age/Condition

The subject property was completed in 2006 and is considered to be in good condition. The

following table delineates the conditions and overall comparability to the subject.

SUBJECT SALE 1 SALE 2 SALE 3 SALE 4 SALE 5 SALE 6 SALE 7

Year Built 2006 2007 2006 2004 2020 2005 2009 2007

Condition Good Good Good Good Excellent Good Good Good

Comparability - Similar Similar Similar Superior Similar Similar Similar

Adjustments were applied based on their respective conditions.

Office Build-Out

The subject property includes 20% office space. The office area is functional for a variety of

light industrial users.

All of the other sales include between 14% and 35% office space. Upward adjustments at a base

of $60 per square foot for the tenant improvements is applied to the comparables up to 40%.

This figure is a portion of the cost derived from comparable cost information as well as Marshall

Valuation figures Interior Industrial Office (Section 14, Page 35).

Britton-Adamo Group/ROI Appraisal

File Number 20-086 70

The following table provides the calculation for these adjustments.

Subject Sale 1 Sale 2 Sale 3 Sale 4 Sale 5 Sale 6 Sale 7

Build Out 20% 15% 20% 22% 14% 19% 28% 35%

% ∆ - 5% 0% -2% 6% 1% -8% -15%

Office Cost/sf - $60 $60 $60 $60 $60 $60 $60

Adj. Cost/SF - $3.00 $0.00 ($1.20) $3.60 $0.60 ($4.80) ($9.00)

Price/SF - $187.27 $170.83 $208.91 $212.00 $189.56 $185.34 $206.45

% Adjustment - 2% 0% -1% 2% 0% -3% -4%

Based on the estimated adjustments, the calculation appears to be reasonable.

Quality

The subject property includes a free-standing, masonry construction with an 18-foot building

height and two grade-level doors. The subject includes a small enclosed yard along the west side

of the building. The following table delineates the quality of the construction of the sales and

overall comparability to the subject.

SUBJECT SALE 1 SALE 2 SALE 3 SALE 4 SALE 5 SALE 6 SALE 7

Construction Masonry

CMU

Masonry

Tilt-Up

Masonry

CMU

Masonry

CMU

Masonry

Tilt-Up

Masonry

Tilt-Up

Masonry

Tilt-Up

Masonry

Tilt-Up

Building Height 18’ 22’ 18’ 21’ 22’ 20’ 24’ 25’

Type Free Standing Inline

(Sl. Inferior) Free Standing Free Standing Attached Attached Attached Free Standing

Roll-up Doors GL Door GL Door GL Door GL Door GL Door GL Door GL Door GL Door

Yard 2,000 sf

Enclosed

No Yard

(Sl. Inferior)

1,000 sf

Enclosed

4,000 sf

Enclosed

(Superior)

4,000 sf

Enclosed

(Superior)

Open Yard No Yard

(Sl. Inferior) Open Yard

Comparability - Inferior Similar Superior Superior Similar Sl. Inferior Similar

Sale 1 includes an inline industrial condo unit and based on an analysis of the comparables, this

factor is rated as slightly inferior.

Slight adjustments were applied for variations in yard size.

There are additional slight additional variations noted between the properties, however, based on

an analysis of the comparable sales, there is not considered to be support for a specific

adjustment for this factor.

Site Coverage

The site coverage ratio of a property is the size of building footprint in relation to the size of the

parcel. A low site coverage ratio indicates that there is a greater amount of land available for

parking, landscaping, access or additional building improvements. Therefore, a property with a

lower site coverage ratio has a greater amount of land associated with each square foot of

building area which tends to increase the value per square foot.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 71

The subject property has a site coverage ratio 34%. All of the sales vary in site coverage ratios

ranging from 31% to 49%. This factor is partially considered in the variations in yard size and

no additional adjustments were warranted.

Other

There were no other physical characteristics of the sales that warranted adjustments in

comparison to the subject property.

IMPROVED SALES ADJUSTMENT GRID

Element of Sale Sale Sale Sale Sale Sale Sale

Comparison 1 2 3 4 5 6 7

Sale Price 818,000$ 410,000$ 1,050,000$ 1,281,540$ 875,000$ 1,075,000$ 1,345,000$

Building 4,368 2,400 5,026 6,045 4,616 5,800 6,515

Price per Sq. Ft. 187.27$ 170.83$ 208.91$ 212.00$ 189.56$ 185.34$ 206.45$

Property Rights Adj. 0% 0% 0% 0% 0% 0% 0%

Adjusted Price 187.27$ 170.83$ 208.91$ 212.00$ 189.56$ 185.34$ 206.45$

Financing Terms Adj. 0% 0% 0% 0% 0% 0% 0%

Adjusted Price 187.27$ 170.83$ 208.91$ 212.00$ 189.56$ 185.34$ 206.45$

Conditions of Sale Adj. 0% 0% 0% 0% 0% 0% 0%

Adjusted Price 187.27$ 170.83$ 208.91$ 212.00$ 189.56$ 185.34$ 206.45$

Market Conditions Adj. 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Adjusted Price 187.27$ 170.83$ 208.91$ 212.00$ 189.56$ 185.34$ 206.45$

Location -5% 0% -5% -5% -5% -2.5% -5%

Physical Adjustments

Size 0% 0% 0% 0% 0% 0% 0%

Age/Condition 0% 0% 0% -5% 0% 0% 0%

Interior Office 2% 0% -1% 2% 0% -3% -4%

Quaility 5% 0% -5% -5% 0% 2.5% 0%

Site Coverage 0% 0% 0% 0% 0% 0% 0%

Overall Adjustment 2% 0% -11% -13% -5% -3% -9%

INDICATED PRICE/SF 191.02$ 170.83$ 185.93$ 184.44$ 180.08$ 179.78$ 187.87$

Britton-Adamo Group/ROI Appraisal

File Number 20-086 72

Listings

In addition to the comparable sales, properties that are available for sale were used to provide

additional information regarding the current market conditions for the subject. Typically, list

prices reflect a perceived maximum price that can be obtained for a property and will most often

be above the eventual sales price that a property commands in the marketplace. The listings

therefore tend to provide a value indication that lies towards the higher end of the range. In

addition, listed properties do not reflect closed transactions that have occurred at a price that was

agreed upon by a willing buyer and a willing seller, a criterion that is inherent in the definition of

market value. Although the listings do provide additional support for the value conclusions

herein, they should be given only secondary weight in the conclusion of value. The current

listings do provide an indication of the current market perception for a property type however,

they have been presented primarily for informational purposes and are used solely as additional

support for the conclusions rendered in this appraisal.

Improved Listings Summary Table

LISTING 1 2

Address 1963 Whitney

Mesa Dr 6560 Spencer St

City/Zip Henderson

89014

Las Vegas

89119

Submarket Henderson Airport

List Price $675,000 $975,000

Building Size (SF) 3,560 4,832

Year Built 2006 2008

Percent Office 12%

(360 sf mezz) 11%

Price per SF $189.61 $201.78

Comparability Similar Similar

Listings of vacant properties of below 5,000 square feet throughout the Henderson and Airport

submarkets were researched. Two primary listings were provided, ranging in asking prices of

$190 and $202 per square foot, one of which is located within the subject’s development. These

listings are provided as support for the value conclusion stated herein.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 73

Conclusion – Sales Comparison Approach

Seven comparable sales have been presented in order to estimate the market value of the subject

property. After adjustments, the sales indicated a range in values from $170.83 to $191.02 per

square foot, with six of the seven sales ranging between $179.78 and $191.02 per square foot.

The adjusted sales indicate a mean and median at $183 and $184 per square foot, respectively.

Sale 2 is located within the subject’s development and is most comparable to the subject.

Although specific adjustments were not applied, it is noted the property includes a smaller yard

area, is an attached building and is not sprinklered. Considering these inferior factors, a

conclusion above the adjusted price at $170.83 per square foot is considered reasonable.

Conclusion

A number of brokers in the Las Vegas market area were consulted over the previous month in

regard to the impact of the current market conditions with consideration given to COVID-19.

Although there is limited comparable data to develop a specific adjustment, there is a generally

consensus of some negative impacts to commercial real estate, specifically investment products.

We are aware of transactions that have been renegotiated a slightly lower rates of 5%-10%, rate

reductions by property managers as a concession to existing tenants of 5%, and deferred rent

payments.

The subject, however, includes a single-tenant product, and the most probable buyer is an owner-

user. As previously discussed, owner-user products are at a higher demand due to competitive

SBA rates and scarcity in the market. Although a specific market conditions adjustment was not

applied, these positive trends are considered. In addition, the warehouse also includes roughly

400 square feet of an open mezzanine storage space. Due to the quality of the space, it is not

considered as part of the total building area however, is a beneficial characteristic.

Based upon the provided market data, with consideration given to the benefit of various

characteristics, there is considered support for a value conclusion at $180 per square foot.

The market value estimate through the sales comparison approach is indicated below.

Building Area: 2,400 square feet

Estimated Unit Value x $180/sf

Indicated Market Value $432,000

Rounded $430,000

Market Value “As Is” via Sales Capitalization Approach – Fee Simple $430,000

Britton-Adamo Group/ROI Appraisal

File Number 20-086 74

I N C O M E C A P I T A L I Z A T I O N A P P R O A C H

The income capitalization approach analyzes a property’s ability to generate net income. The

subject is analyzed using techniques similar to those a potential purchaser-investor might

employ. The income approach to value is based on the economic principle of anticipation, which

states that value is created by the expectation of benefits to be derived in the future. A typical

method of valuing income-producing property is known as capitalization which converts an

anticipated income stream into value. The real estate market has shown that there is a direct

relationship between income and value of a property.

There are two ways to convert the estimated annual net operating income into a value indication,

direct capitalization of the projected first year net income and discounted cash flow analysis of

net income over a holding period. The typical methodology used by buyers for properties of

similar in size and tenancy to the subject is the direct capitalization methodology. This analysis

converts the subject’s net operating income estimate into a value indication by applying an

overall capitalization rate derived from market transactions and investor expectations.

In the direct capitalization analysis, the potential gross income is first estimated. A deduction is

applied for vacancy and collection loss, which is based on market data and investor expectations,

and results in the effective gross income. Deductions are then recognized for various operating

expenses, if necessary, to indicate the net operating income. The net operating income is then

converted to an estimate of value for the subject using the market-derived overall capitalization

rate.

The subject property is owner-operated. Within this portion of the analysis, the potential gross

income of the subject is estimated via market rents from comparable properties. After projecting

the potential gross income, the vacancy and collection loss factor is deducted, and then the

projected annual expenses. The resulting annual net operating income is estimated. The

estimated market rent of the subject is estimated by an analysis of rents being achieved at similar

properties. Market rent, or economic rent, is the rental income that a property would most likely

command in the open market.

Comparable Rentals

The rents used in this analysis are of comparable industrial properties in the immediate market

area that are considered competitors to the subject property. The rent comparables are used to

estimate the market rent for the subject property. Included on the following pages are details of

the rent comparables and a map indicating their location in relation to the subject property. The

comparables provide indications of the current market conditions for rents of similar space in the

market area.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 75

RENT COMPARABLES MAP AND SUMMARY TABLE

# Location/Name Size (SF) Rental Rate per SF

per Month Comments

1

Green Valley Industrial Park

1963 Whitney Mesa Dr

Henderson 89014

3,560 $0.83

NNN

Tenant: Confidential; Lease start 10/27/20; 1-yr term renewal; 12%

office; Built in 2006; 16’ Clear Ht; 2 GL Doors; Masonry; Est $0.15

CAM fee, Endcap w/yard

Paul Callister – Albright Callister & Assoc

2

Sandhill Airport Park

6320 S. Sandhill Rd, #8

Las Vegas 89120

2,160 $0.85

NNN

Tenant: Confidential; Leased 2/1/20; 32-mo lease; 3% annual incr;

~45% office; Built in 1997; 16’ Clear Ht; 1 GL Doors; Masonry;

$0.17 CAM fee, Inline; No yard

Alex Stanisic – Colliers International

Multiple units leased in previous year at $0.85-$0.95/sf

3

Patrick Airport Center

6045 Harrison Dr

Las Vegas 89120

2,866 $0.80

NNN

Tenant: Bryan Lindsey; Leased 10/7/20; 38-mo lease; 3% annual incr;

28% office; Built in 2000; 18’ Clear Ht; 1 GL Doors; Masonry; $0.20

CAM fee, Inline, No yard

Alex Stanisic – Colliers International

4

Whitney Mesa Business Park

1860 Whitney Mesa Dr

Henderson 89014

3,472 $0.80

NNN

Available space; 2+yr lease; 3% annual incr; N/A office; Built in

2006; 21’ Clear Ht; 1 GL Doors; Masonry; $0.26 CAM fee, Inline, No

yard

Karen Kohler – Executive Realty Services

5

Nu-West Business Park

5460 Desert Point Dr

Las Vegas 89118

7,504 $1.10

NNN

Tenant: Confidential; Leased 8/21/20; 2-yr lease; 3% annual incr;

47% office (High-end); Built in 1995; 16’ Clear Ht; 3 GL Doors;

Masonry; $0.10 CAM fee, Enclosed yard

Chip Madsen – Ivan Sher Group

Britton-Adamo Group/ROI Appraisal

File Number 20-086 76

Rent 1

Rent 2

Rent 3

Rent 4

Rent 5

Britton-Adamo Group/ROI Appraisal

File Number 20-086 77

Analysis of Comparables

The rents used in this analysis are of similar quality industrial buildings that are considered

competitive to the subject property. They are comparable properties that have general similar

locations and physical characteristics to the subject. There are a number of variables between the

subject and the comparables which are analyzed and adjustments made to the lease rates.

The comparables were compared to the subject for a variety of factors including, expense basis

(i.e. triple net, gross etc.), lease terms, as well as a variety of location and physical characteristics

(quality and condition of tenant improvements, size, access, visibility, age/condition).

Consideration was given to each of these factors and based on a comparative analysis,

adjustments were applied where there were substantial differences. The following discussion

describes the adjustments made to the rent comparables.

Discussion of Rent Comparables

Location

A The subject property is located within a secondary industrial area of the Henderson submarket.

All of sales are located within the subject’s immediate area as identified in the following table.

SUBJECT RENT 1 RENT 2 RENT 3 RENT 4 RENT 5

City/Zip Henderson

89014

Henderson

89014

Las Vegas

89120

Las Vegas

89120

Henderson

89014

Las Vegas

89118

Submarket Henderson Henderson Airport Airport Henderson Southwest

Avg Rent $0.80 $0.80 $0.81 $0.81 $0.80 $0.86

Comparability - Similar Sl. Superior Sl. Superior Similar Superior

Rents 1 and 4 are located in the subject’s development or adjacent development and no

adjustment is applied.

Rents 2 and 3 are located in the Airport submarket. Based on an analysis of the comparable

sales, there is support for downward adjustments to be applied.

Rent 5 is located in the primary industrial area of the Southwest submarket, a superior submarket

area.

Size

The subject property has a total building area of 2,400 square feet. The following table

delineates the size and overall comparability to the subject.

SUBJECT RENT 1 RENT 2 RENT 3 RENT 4 RENT 5

Building Size (SF) 2,400 3,560 2,160 2,866 3,472 7,504

Comparability - Similar Similar Similar Similar Sl. Inferior

Based on an analysis of the comparables, nominal adjustments are applied.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 78

Age/Condition

The subject property was completed in 2006 and is in good condition for its age. The following

table delineates the conditions and overall comparability to the subject.

SUBJECT RENT 1 RENT 2 RENT 3 RENT 4 RENT 5

Year Built 2006 2006 1997

(Reno) 2000 2006

1995

(Reno)

Condition Good Good Good Good Good Good

Comparability - Similar Similar Similar Similar Similar

Adjustments were applied based on their respective conditions.

Quality

The subject property is a free-standing industrial building with a masonry construction and a 16’

clear height. The property also includes an enclosed storage yard with 2 grade-level doors. The

following table delineates some of the quality characteristics and overall comparability to the

subject.

SUBJECT RENT 1 RENT 2 RENT 3 RENT 4 RENT 5

Clear Height 16’ 16’ 16’ 18’ 21’

(Sl. Superior) 16’

Construction Masonry Masonry Masonry Masonry Masonry Masonry

Building Type Free

Standing Endcap

Inline

(Sl. Inferior)

Inline

(Sl. Inferior)

Inline

(Sl. Inferior) Attached

Doors GL GL GL GL GL GL

Yard Enclosed Enclosed None

(Inferior)

None

(Inferior)

None

(Inferior) Enclosed

Comparability - Similar Inferior Inferior Sl. Inferior Similar

There are noted differences in quality however, nominal adjustments were applied.

Office Build-Out

The subject property includes an estimated 20% office space. The comparables have the

following office space build-outs:

Subject RENT 1 RENT 2 RENT 3 RENT 4 RENT 5

Build Out 20% 12% 45% 28% N/A 47%

Comparability - Sl.

Inferior Superior

Sl.

Superior Similar Superior

Consideration of adjustments were applied in line with the previous analysis in the Sales

Comparison Approach.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 79

Conclusion – Market Rent

To estimate the economic rent for the subject property, five rent comparables in the market area

were presented and compared to the subject property. The rent comparables utilized in this

analysis were of various light industrial facilities in the subject’s market area. A qualitative

analysis is summarized in the following table based on the previous discussion of comparables.

RENT COMPARABLES ADJUSTMENT GRID

Element of Rent Rent Rent Rent Rent

Comparison 1 2 3 4 5

Monthly Rent/SF $0.83 $0.85 $0.80 $0.80 $1.10

Market Conditions Adj. -$ -$ -$ -$ -$

Adjusted Annual Rent $0.83 $0.85 $0.80 $0.80 $1.10

Conditions of Lease Adj. -$ -$ -$ -$ -$

Adjusted Annual Rent $0.83 $0.85 $0.80 $0.80 $1.10

Lease Basis Adjustment -$ -$ -$ -$ -$

Adjusted Annual Rent $0.83 $0.85 $0.80 $0.80 $1.10

Location Similar Sl. Superior Sl. Superior Similar Superior

Physical Adjustments

Size Similar Similar Similar Similar Sl. Inferior

Age/Condition Similar Similar Similar Similar Similar

Quality Similar Inferior Inferior Sl. Inferior Similar

Office Build Out Sl. Inferior Superior Sl. Superior Similar Superior

Other Similar Similar Similar Similar Similar

Overall Adjustment Sl. Inferior Similar Sl. Inferior Sl. Inferior Superior

INDICATED ANNUAL RENT $0.83 $0.85 $0.80 $0.80 $1.10

After consideration of lease structure, the majority comparables indicate rates of near $0.85 to

$0.90 per square foot. Considering the subject’s office ratio, a conclusion toward the higher end

of the range is considered reasonable.

Market Rent Conclusion

Based on an analysis of the information provided and recent submarket rent trends, a market rate

at $0.875 per square foot is considered reasonable.

Vacancy and Collection Loss

The next step in the analysis is to estimate the loss in income due to vacancy and collection

losses. The estimated vacancy rate reflects what can be expected over the typical holding period

for a property. The Las Vegas industrial market has experienced a general rise in vacancy in

recent years with the most current estimate at 5.2% of total inventory. The subject is located in

the Henderson submarket, which had a vacancy of 2.0% in the 2nd Quarter 2020.

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File Number 20-086 80

The following table identifies the trends for industrial uses in the market area derived from

CoStar:

Data published in the PwC 3rd Quarter 2020 Real Estate Investor Survey for National Warehouse

Market indicates underlying vacancy and credit loss by survey respondents ranging from 0 % to

10%. The following delineates the individual survey classes.

The following table indicates the occupancy trends in the industrial market in relation to the

increases in the office employment market from Colliers International 2nd Quarter Industrial

Market survey.

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File Number 20-086 81

In addition, discussions with industrial brokers in the area were provided in which the broker

opined the typically applicable vacancy rate for a single-tenant industrial property in the

submarket. It is noted in this scenario, the property was viewed as an investment.

Source Vacancy

Jordan Wirsz – Savant Investment 0%

Amy Ogden – Logic Commercial 0% - 3%

In addition, market participants were asked about vacancy periods upon vacancy for the subject’s

free-standing product type. There is limited availability for the subject’s product type and a

vacancy period of 3-6 months is estimated. Considering an initial lease term of 5 years with

tenant retention being 70% +/- for renewal, this lease up period reflects 2% - 4% vacancy over a

10-year holding period.

The vacancy rate estimate takes into account the typical vacancy which can be expected over a

holding period. Based on the subject’s location and physical characteristics, the vacancy and

collection loss factor is estimated to be below the average market vacancy rate in the area.

Considering the condition of the subject, its single-tenant occupancy and the owner occupancy

trend in the market area, as well as the demand for single-tenant buildings in the market, a

nominal vacancy and collection loss is estimated. The subject is primarily marketable as a

single-tenant property to an owner-user and if a vacancy occurs, the subject may be leased within

a relatively short period at market rent or sold to an owner-user within a limited marketing

period. These various scenarios are considered within the vacancy estimate. The long-term

vacancy for the subject is estimated at 2.5% of potential gross income, which accounts for 3

months of vacancy within a 10-year holding period.

An additional collection loss factor is considered in the current economic climate, considering

some tenants are requesting forbearance. Based on the owner-user occupancy, no additional

amount is estimated.

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File Number 20-086 82

Operating Expenses

The market rent for the subject is estimated on a triple net basis, wherein all operating expenses

are passed through to the tenants in the form of a monthly CAM expense. The property owner

will incur some expenses including legal, accounting, entity fees, and other miscellaneous items.

Consideration is also given for reserves for replacements of short lived items. Each of these is

discussed below.

Non-Reimbursable Expenses

Non-reimbursable expenses are typically expenses including legal, accounting, entity fees, and

other miscellaneous items. Total non-reimbursable expenses are estimated at 2.0% of effective

gross income.

Reserves for Replacements

The replacement reserve category is an annual allowance that typically provides a liquid reserve

account with the funds to be used in the replacement of those items whose useful life is shorter

than that of the building. These short-lived items deteriorate and will eventually need to be

replaced. For example, flooring typically is replaced after five to seven years, heating and air

conditioning units may need to be replaced every 7-12 years, driveway and parking areas may

need to be resurfaced every 3-5 years.

Reserves may or may not be a line item on a typical operating statement because different

owners/managers tend to handle this category in different ways. Some property owners may

actually set up a reserve account to handle a replacement of major items. Other owners pay for

the items as they need to be replaced. If an item is replaced as the need arises, the expense is

typically accounted for as a capital improvement in the repair and maintenance category.

Reserves for the subject property are estimated 1% of EGI.

Overall Rate Analysis

Capitalization is the process of converting a net income stream into an indication of value. There

are several types of capitalization methods that can be utilized to derive a value via the Income

Approach. The direct capitalization method converts a single year's net operating income

estimate into a value indication by applying an overall capitalization rate. Capitalization rates

can be derived from various techniques. These include deriving a rate from the comparable

improved sales, utilizing a band of investment with mortgage and equity components as well as

using a debt coverage formula, and rate surveys.

This portion of the income approach to value will estimate the value of the subject property by

applying a capitalization rate to the net operating income. This method may utilize an overall

rate based upon market extracted capitalization rates from sales comparable or it may use overall

rates reflecting the relationships between mortgage rates and equity investment rates. The

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File Number 20-086 83

overall capitalization rate (OAR) is the ratio of net operating income as of the date of sale to the

cash equivalent sales price. The OAR is a reflection of the present value of anticipated future

benefits.

Capitalization rates can be derived from various techniques. These include deriving a rate from

the comparable improved sales, utilizing a band of investment with mortgage and equity

components as well as using a debt coverage formula, and rate surveys.

Sales Data

The most desirable way to estimate an overall capitalization rate is through market extraction

from sales of comparable properties. Sales of single-tenant industrial building in Las Vegas over

the previous 18 months, in a similar investment class of up to $5,000,000, which provided an

overall capitalization rate estimate were used in the analysis. The following table shows the

overall capitalization rates from all of the sales.

Capitalization Rates from Industrial Properties

Date Property Address Sales Price Building SF Cap Rate

3/22/2019 2545 W Cheyenne Ave $1,218,750 8,000 6.85%

3/29/2019 2821 E Alexander Rd $1,850,000 14,920 6.30%

4/1/2019 611 Cape Horn Dr $1,712,000 12,300 6.47%

4/10/2019 5875 Service Ct $1,292,000 8,078 6.00%

4/11/2019 4625 W Nevso Dr $1,825,000 16,926 6.89%

4/24/2019 4480-4500 Delancey Dr $1,600,000 15,400 5.75%

5/31/2019 2057 E Maule Ave $3,945,000 28,910 5.46%

6/7/2019 3720 W Oquendo Rd $4,000,000 19,690 5.50%

6/17/2019 420 Mark Leany Dr $830,000 5,400 7.50%

7/1/2019 2919 N Lamb Blvd $1,100,000 9,134 6.98%

8/7/2019 229 W Foster Ave $535,000 5,024 6.41%

11/7/2019 3852 E Post Rd $1,275,000 8,330 7.50%

11/19/2019 4530 Calimesa St $2,925,000 25,875 5.70%

12/13/2019 2008 Sunset Rd $715,000 4,960 6.70%

3/16/2020 6635 W Badura Ave $985,000 5,800 4.98%

3/23/2020 6210 Annie Oakley Dr $2,300,000 14,814 7.00%

6/22/2020 4210 N Lamb Blvd $490,000 4,342 6.27%

6/22/2020 4615 N Lamb Blvd $2,685,000 13,625 6.50%

The rates range from 4.98% to 7.50%, with a mean and median of 6.38% and 6.44%. There have

a limited number of truly comparable sales of industrial facilities in the market area over the

previous 2 years, which sold as investment properties with capitalization rates. Considering the

market data and the characteristics of the subject, a rate toward the lower end of the range near

6.0% - 6.5%, is considered reasonable.

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File Number 20-086 84

Broker Interviews

Brokers were specifically interviewed about the potential capitalization rates for the subject with

the leasing scenario with the physical characteristics of similar industrial properties. The results

of the interviews are reported in the following table.

Source Cap Rate

Amy Ogden – Logic Commercial 5.75% - 6.5%

Elizabeth Moore – Real Comm Solutions 5.5%- 6.5%

Ben Millis – Avison Young 5.5%- 6.5%

Sean Zaher - CBRE 5.5% - 6.0%

Dean Willmore – Colliers International 5.5% - 6.0%

The subject includes a good quality industrial building. Based on all of the information, the

overall capitalization rate for the subject, based on the sales information, is estimated at the

center of the range at 6.0%.

National Survey

The PwC Real Estate Investor Survey, a leading national real estate survey published by

PriceWaterhouseCoopers, provides indications of the anticipated discount rates for a variety of

sectors of the real estate investment market. The survey is based on the anticipated market

conditions by active participants in this sector. The information from the most recent survey (3rd

Quarter 2020) is summarized below.

PWC Real Estate Investor Survey

Based on the characteristics of the subject, a market rate slightly above the national average near

5.0% - 6.0%, is considered reasonable.

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File Number 20-086 85

CoStar Market Analytics

The following tables reflect current and forecast cap rate trends as of the date of value, for

general industrial spaces, derived from CoStar Analytics.

Industrial Market

Primary weight is placed on the overall Las Vegas submarket, which reflects an average cap rate

near or slightly above 5.6%.

CBRE Cap Rate Survey

The CBRE Cap Rate Survey was also provided from the 2nd Half of 2019. The following table

summarizes their result from the Las Vegas Market:

Capitalization Rate for Industrial Properties in Las Vegas

Period Type Class A Class B Class C

2nd Half 2019 Stabilized 4.75%-5.25% 5.25%-5.75% 6.5%-7.25%

Based on the characteristics of the subject and the characteristics of the subject property, a

capitalization rate at the high end of Class B properties at 5.75%, is considered reasonable for the

subject.

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File Number 20-086 86

Colliers Cap Rate Survey

The Colliers Cap Rate Survey was also provided from the 2nd Quarter 2020. The following table

summarizes their result from the Las Vegas Market:

Based on the characteristics of the subject and the characteristics of the subject property, a

capitalization rate near the most recent full statistics year, 2019, average of 6.3%, is considered

reasonable for the subject.

Overall Capitalization Rate Conclusion

The overall capitalization rates derived from the various techniques were as follows:

Market Data 6.0% - 6.5%

Broker Interviews 6.0%

PwC Survey 5.0% - 6.0%

CoStar Market Analytics 5.6%

CBRE Survey 5.75%

Colliers Survey 6.3%

The subject includes a single-tenant, good quality industrial building. Considering the specific

characteristics of the subject and market rate, a market rate of 6.0% is utilized.

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File Number 20-086 87

Conclusion of Income Capitalization Approach

A summary of the income capitalization approach for the subject property is located in the table

that follows.

INCOME APPROACH SUMMARY

DIRECT CAPITALIZATION

INCOME

Potential Gross Income (Annual)

1961 Whitney Mesa Dr 2,400 SF @ 0.875$ per Mo (Market) 25,200$

Total 25,200$

LESS: Vacancy & Collection Loss @ 2.5% 630$

Effective Gross Income 24,570$

EXPENSES

Non-Reimbursable Expenses 2.0% of EGI 491$

Reserves 1.0% of EGI 246$

Total Expenses 737$

NET OPERATING INCOME 23,833$

DIVIDED BY OVERALL RATE 6.00%

INDICATED MARKET VALUE 397,215$

FINAL CONCLUSION OF VALUE 400,000$

Market Value “As Is” via Income Capitalization Approach – Fee simple $400,000

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File Number 20-086 88

R E C O N C I L I A T I O N

The market value “as is” indicated by the three separate valuation approaches, are as follows:

Market Value

Cost Approach N/A

Sales Comparison Approach $430,000

Income Approach $400,000

Sales Comparison Approach

In the sales comparison approach, seven sales of similar properties, which have sold recently,

were compared to the subject property. After consideration of all adjustments, there is good

support for a value conclusion near $180 per square foot. The adjustments utilized were

considered reasonable and the resulting value conclusion is considered well supported. The

industrial market includes primarily owner/user properties within the subject’s size range. A

typical buyer of the subject property would likely be an owner/user who would rely on sales of

comparable facilities in a purchase decision. This is considered to be the driving mechanism for

valuation. Considering the quality of the data, the conclusion from this approach is considered to

be a reliable indication of value. Therefore, the conclusion from the sales comparison approach

is considered the primary approach in the final conclusion.

Income Approach

The subject property is developed as a single-tenant industrial building, valued in the fee simple

interest. Based on discussions with the brokers in the immediate area, there has been

increased interest in leasing for the available properties in the market area. A buyer of this type

of property may potentially be an investor, however, would likely base a purchase decision on

sales in the market area. Considering the potential market for the subject, the income approach

method is believed to provide a reasonable indication of value although is given limited weight

in the final market value conclusion.

Reconciliation and Conclusion

Considering the strengths and weaknesses of each of the approaches, the sales comparison

approach is given primary weight with minimal weight given to the income capitalization

approach in the reconciliation.

Based on an analysis of the market data, a market value inline with the current sales price and the

conclusion via the sales comparison approach of $430,000 is considered to be reasonable. The

conclusion equates to a cap rate of 5.9%, based on the potential gross rent, without consideration

given to vacancy or expenses, which is also a reasonably utilized methodology in the

marketplace. This is considered to further support the value conclusion.

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File Number 20-086 89

After considering all of the available facts and subject to the underlying assumptions and limiting

conditions contained herein, the “as is” market value of the fee simple interest in the subject

property, as of September 25, 2020 is:

FOUR HUNDRED THIRTY THOUSAND DOLLARS

$430,000

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File Number 20-086 90

Exposure/Marketing Time

The definitions of exposure time and marketing time are included below.

Marketing Time “An opinion of the amount of time it might take to sell a real or personal property interest at the concluded

market value level during the period immediately after the effective date of an appraisal. Marketing time

differs from exposure time, which is always presumed to precede the effective date of an appraisal.”

Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015)

Exposure Time “The estimated length of time that the property interest being appraised would have been offered on the

market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal.

Comment: Exposure time is a retrospective opinion based on an analysis of past events assuming a

competitive and open market.”

Source: Uniform Standards of Professional Appraisal Practice (USPAP)

Current appraisal guidelines require an estimate of the exposure time be included with an

estimate of market value, whereas an estimate of marketing time is not required unless required

for the specific appraisal assignment. Since exposure time is considered a “retrospective

marketing period”, and always precedes the date of value, it is necessary to examine past market

conditions, prior to the effective date of value. Support for this estimate is obtained by an

analysis of the exposure times associated with sales of comparable properties that have occurred

prior to the date of value of the appraisal. There are also a number of companies, organizations

and governmental agencies that provide marketing and sales information for different properties

and/or market segments. The sales data will typically include the time that was required to

market and close the sale of property, which is equivalent to the exposure time.

Published surveys of market participants regarding opinions of the perceived time necessary to

market and sell a property, as of the current date, are good sources for the estimate of marketing

time. These are estimates of time to sell a property from the date of value of the appraisal, and

looking into the future. Therefore, these opinions are considered indications as to the marketing

time of a property, from the current date until the sale of a property. In addition, discussions

with individual real estate professionals and property owners are used as the basis for an estimate

of the marketing time.

Based on an analysis of comparable sales, published statistics, and information and opinions

obtained from market participants, the appropriate exposure time that would have been

associated with the sale of the subject property at the concluded value on the date of value, is 12

months. Based on the current and projected trends in the market, the marketing time for the

subject is estimated at 12 months.

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File Number 20-086 91

I N S U R A B L E V A L U E

In addition, the client requested the estimated insurable value of the subject. The Insurable

Value of the subject improvements is based on the estimated construction costs. The estimate

does not include site development costs or items such as contractor’s profit, contingency or

overhead. I have provided a brief analysis of the cost approach within the following section.

Marshall Cost Estimate

The Marshall and Swift Publication Company publish a nationally recognized cost manual. The

published costs include all direct costs for the base structure and interior finish, as well as

indirect costs of plans, specifications, and building permits, including engineer’s and architects

fees, normal fees and interest on construction funds during the construction period, sales tax on

materials, contractor’s overhead and profit, including workers compensation, fire and liability

insurance, and unemployment insurance.

The costs determined by the Marshall Valuation Service program include all direct construction

costs plus many indirect cost items. According to the Marshall Valuation Cost reference manual,

the subject improvements are classified as a good quality Class "C" Light Industrial/Warehouse

Shell Building, with average quality Industrial, Interior Office Space (Section 14, Page 35).

These costs were based on the estimates from the Marshall & Swift Cost Manual which includes

some indirect costs which would not be included within the insurable value. I have estimated

this figure to be approximately 10 percent of the total cost.

The following table outlines the estimated insurable value for the subject improvements.

Building Type Shell Building Interior Office

Class C N/A

Type Average Average

Section/Page 14/35 14/35

Estimated Base Cost/SF – Shell $53.50 $56.50

Sprinklers $5.00 N/A

Building Height (18’) 1.086 N/A

Current Cost Multiplier 1.04 1.04

Local Multiplier 1.15 1.15

Indicated Cost/SF $75.98 $67.57

Size (sf) 2,400 480

Indicated Cost: $182,359 $32,436

Total: $214,795

Insurable Value @ 90% $193,315

Rounded $195,000

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File Number 20-086 92

V A L U A T I O N O F E Q U I P M E N T

Subject Identification

The subject business personal property consists of various crematory furniture, fixtures, and

equipment owned by County Funeral Services, LLC with a physical address of 1961 Whitney

Mesa Drive, Henderson, Nevada 89014. All the capital equipment is located at the above-

referenced address.

Ownership History and Title of Appraised Items

It is our understanding that the items appraised are owned and belong to County Funeral

Services, LLC, owner of the aforementioned industrial building. As of the effective date, the

owner operates at the subject property. We assume the items appraised are under said ownership

with a clear and marketable title as of the effective date of valuation.

Purpose of the Appraisal

The purpose of the valuation is to form of the Fair Market Value in Continued Use of the subject

business personal property. The interest valued is the fee simple interest. The Fair Market Value

estimate in this report is the value of the business personal property as if the business is in

operation and the earnings were in support the reported value, without verification.

Property Rights Appraised

The interest that is the subject of this valuation is the fee simple estate, defined below.

Fee Simple Estate “Absolute ownership unencumbered by any other interest or estate, subject only to the

limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.”

Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015)

Standard and Premise of Value

We have developed an opinion of the fair market value in continued use with assumed earnings

of the subject business personal property. With regard to the valuation of personal property, the

most widely recognized and accepted standard of value is fair market value. It is the standard

that applies to nearly all federal and state tax matters, such as estate taxes, gift taxes, inheritance

taxes, income taxes, and ad valorem taxes. It is also the legal standard of value in many other

valuation situations and is considered appropriate to use for the purpose of this valuation.

Fair Market Value Defined

Fair Market Value in Continued Use with Assumed Earnings is defined in Valuing Machinery

and Equipment; The Fundamentals of Appraising Machinery and Technical Assets, Third

Edition, issued by the American Society of Appraisers (ASA), as:

“is an opinion, expressed in terms of money, at which the property would change hands between

a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and

both having reasonable knowledge of relevant facts, as of a specific date and assuming that the

business earnings support the value reported, without verification.”

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File Number 20-086 93

We have developed this appraisal on a premise of fair market value in continued use with

assumed earnings, independent of earnings generated by the business. It is important to note the

appraiser has not verified the past, present, or hypothetical future income-generating

performance of the business to which the assets were a part. Such an analysis may yield varying

results and impact the amount a willing buyer would pay for the assets and/or business they

support.

The following additional definitions are relevant to this report:

Reproduction Cost New: The cost of reproducing a new replica of a property on the basis of

current prices with the same or closely similar materials.

Replacement Cost New: The current cost of a similar new property having the nearest equivalent

utility as the property being appraised.

Depreciation: A loss in value from all causes, including factors of physical deterioration,

functional or technical obsolescence, and external obsolescence.

We have also provided opinion of Orderly Liquidation Value. The definition of this type of value

is as follows:

Effective Date of Valuation/Inspection Date

The effective date of “as is” market value corresponds to the date of inspection and is September

25, 2020.

Date of Report

The date of this report is September 29, 2020.

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File Number 20-086 94

Scope of the Appraisal

For an appraisal assignment, an appraiser must identify the problem to be solved, determine and

perform the scope of work necessary to develop credible assignment results; and disclose the

scope of work in the report. The scope of work for this appraisal included, but was not limited

to, the following:

• Communications and agreement with the client regarding the intended use and intended users of the

appraisal as outlined in this report

• A brief description of the personal property being appraised and its environment

• A personal visit to the location of the subject personal property being appraised and a visual inspection of

most items appraised.

• Research and analysis of reproduction, replacement costs and going market price of items based on

provided information and availability of data

• A search for and analysis of comparable personal property to the items appraised

• Consideration of the application of the cost and/or sales comparison approaches, and applying the relevant

valuation methods as deemed appropriate (A more detailed explanation of the methods and techniques used

in the individual approaches is in the body of this report)

• Reconciliation of the applied approach to value for the final value conclusion

• Preparation of an appraisal report based on our findings

The Extent to Which the Property is Identified

The subject personal property was identified during site visits by Luke J. Adamo on September 25,

2020. Most of the items appraised were visually inspected and, if available, identifying features

were noted which would prove pertinent to the valuation. A specific equipment list was not

provided; however, the appraiser has relied upon his personal inspection and property owner’s

description to identify the majority of the appraised items.

The Extent to Which Tangible Property is Inspected

A visual inspection was made to verify that the personal property items exist and to visually

estimate condition. Most of the items were observed and are assumed to be in good working order,

though a detailed mechanical inspection was not made. The various items being appraised are

photographed, when possible. When applicable, items appraised which were not present during the

site visits are identified via photographs and/or information provided by the client and/or

employees of the company. Any items that were not present for visual inspection are assumed to

be in good working condition.

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File Number 20-086 95

The Type and Extent of Data Researched

We have relied on one or more of the following sources of information for the development of this

appraisal:

• National and regional economic data – Key Value Data, Site to do Business, editions of

the Appraisal Journal, and/or other information sources deemed to be reliable

• Industry data –Key Value Data, IBISWorld, and/or other information sources deemed to

be reliable

• Company information – provided by the client and/or employees or associates

• Valuation data sources – one or more of the following sources: the original equipment

manufacturer (if possible), dealers and brokers of like equipment, published catalogs and

guides of similar equipment, and/or various online sources of information.

We have described the characteristics of the subject items to the best of our ability. Some of the

subject items may be purchased and/or sold with a variety of peripheral attachments, support items,

and other amenities, which could affect value. It is not always possible to know of such factors

that may or may not exist. Therefore, it is assumed the subject items do in fact have basic qualities

needed for operation and may have associated peripheral amenities. All information provided to us

is believed to be accurate but not warranted or guaranteed.

Extent of Research into Physical or Economic Factors that Could Affect Value

National, regional, and industry-related economic factors have been researched using a variety of

sources. The value premise, Fair Market Value in Continued Use with assumed earnings is

independent of earnings generated as part of a going concern business enterprise. It is beyond the

scope of this assignment to analyze or comment on the profitability of the subject business. If the

client has concerns regarding the business, further research on the part of the client and/or intended

users is recommended.

The Type and Extent of Analyses Applied to Arrive at Opinions or Conclusions

Three standard approaches to value include the Cost Approach, Income Approach, and Sales

Comparison Approach. The Sales Comparison Approach is utilized in the valuation of most of the

various personal property items. When comparable sales and/or listings of similar personal

property is scarce or unavailable, the Cost Approach is relied upon. The Income Approach is

seldom developed in the valuation of personal property and was not used in the valuation process.

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File Number 20-086 96

Level of Trade

The subject personal property has been appraised at the following level of trade: Fair Market

Value in Continued Use with assumed earnings.

The following values representing the most common levels of trade are defined in Valuing

Machinery and Equipment: The Fundamentals of Appraising Machinery & Technical Assets,

Third Edition, by the American Society of Appraisers.

Fair Market Value is an opinion, expressed in terms of money, at which the property would

change hands between a willing buyer and a willing seller, neither being under any compulsion to

buy or to sell and both having reasonable knowledge of relevant facts, as of a specific date.

Fair Market Value – Removed is an opinion, expressed in terms of money, at which the property

would change hands between a willing buyer and a willing seller, neither being under any

compulsion to buy or to sell and both having reasonable knowledge of relevant facts, considering

removal of the property to another location, as of a specific date.

Fair Market Value in Continued Use with Assumed Earnings is an opinion, expressed in

terms of money, at which the property would change hands between a willing buyer and a willing

seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge

of relevant facts, as of a specific date and assuming that the business earnings support the value

reported, without verification.

Fair Market Value – Installed is an opinion, expressed in terms of money, at which the property

would change hands between a willing buyer and a willing seller, neither being under any

compulsion to buy or sell and both having reasonable knowledge of relevant facts, considering

market conditions for the asset being valued, independent of earnings generated by the business in

which the property is or will be installed, as of a specific date.

Orderly Liquidation Value is an opinion of the gross amount, expressed in terms of money, that

typically could be realized from a liquidation sale, given a reasonable period of time to find a

purchaser (or purchasers), with the seller being compelled to sell on an as-is, where-is basis, as of a

specific date.

Forced Liquidation Value is an opinion of the gross amount, expressed in terms of money, that

typically could be realized from a properly advertised and conducted public auction, with the seller

being compelled to sell with a sense of immediacy on an as-is, where-is basis as of a specific date.

Liquidation Value in Place is an opinion of the gross amount, expressed in terms of money, that

typically could be realized from a properly advertised transaction, with the seller being compelled

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File Number 20-086 97

to sell, as of a specific date, for a failed, non-operating facility, assuming that the entire facility is

sold intact.

Salvage Value is an opinion of the amount, expressed in terms of money, that may be expected for

the whole property or a component of the whole property that is retired from service for possible

use, as of a specific date.

Scrap Value is an opinion of the amount, expressed in terms of money, that could be realized for

the property if it were sold for its material content, not for a productive use, as of a specific date.

Insurance Cost New is the replacement or reproduction cost new as defined in the insurance

policy less the cost new of the items specifically excluded in the policy, as of a specific date.

Insurable Value Depreciated is the insurance replacement or reproduction cost new less

accrued depreciation considered for insurance purposes, as defined in the insurance policy or

other agreements, as of a specific date.

Overall Condition of Items Appraised

It is understood that the subject items are in Good Condition and are used consistently. Overall,

the subject items visually appear to be in Good Condition.

For reference, we have provided the reader with the following definitions of condition.

Very Good (VG)

This term describes an item of equipment in excellent condition capable of being used to its fully

specified utilization for its designated purpose without being modified and not requiring any

repairs or abnormal maintenance at the time of inspection or within the foreseeable future.

Good Condition (G)

This term describes those items of equipment which have been modified or repaired and are

being used at or near their fully specified utilization but the effects of age and/or utilization

indicate that some minor repairs may have to be made or that the item may have to be used to

some slightly lesser degree than its fully specified utilization in the foreseeable future.

Fair Condition (F)

This term describes those items of equipment which are being used at some point below their

fully specified utilization because of the effects of age and/or application and which require

general repairs and some replacement of minor elements in the foreseeable future to raise their

level of utilization to or near their original specifications.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 98

Poor Condition (P)

This term is used to describe those items of equipment, which can only be used at some point

well below their fully specified utilization, and it is not possible to realize full capability in their

current condition without extensive repairs and/or replacement of major elements in the very

near future.

Scrap Condition (X)

This term is used to describe those items of equipment which are no longer serviceable and

which cannot be utilized to any practical degree regardless of the extent of the repairs or

modifications to which they may be subjected. This condition applies to items of equipment

which have been used for 100% of their useful life or which are 100% technologically or

functionally obsolescent.

Three Approaches to Value

There are three of the traditional approaches to valuing personal property: Cost Approach, Sales

Comparison Approach, and Income Approach.

Cost Approach

The cost approach is based upon the principle or substation, whereas a prudent buyer will not

pay more for a property than the cost of acquiring a substitute property of equivalent utility.

Using the cost approach, the appraiser starts with the current replacement or reproduction cost

new of the property being appraised. At times, replacement models (with similar or equivalent

utility) are offered when the subject model is no longer manufactured. When this condition

exists, the appraiser endeavors to correlate and adjust for various factors involved. After

estimating replacement or reproduction costs, deductions are made, as necessary, for

depreciation from all sources. Sources of depreciation include physical depreciation, functional

obsolescence and economic obsolescence.

Physical depreciation is caused by wear and tear, deterioration, exposure to various elements,

physical stresses, and similar factors over time. Physical depreciation is applied using the

age/life method, where:

Functional obsolescence occurs when the loss in value or usefulness of an item is caused by

inefficiencies or inadequacies inherent in the item, when compared to a more efficient or less

costly replacement property. Functional obsolescence is curable when the cost to cure results in

equal or greater resulting value. Economic obsolescence is depreciation due to factors outside

the appraised item, such as poor economic conditions, availability of financing, etc.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 99

Sales Comparison Approach

The sales comparison approach consists of analyzing sales and/or offering prices of similar items

to the subject items being appraised. To make the sold (or offered) items more comparable to the

subject items, a quantitative or qualitative analysis of differences that impact value is conducted.

The results of the analysis are applied to the subject items being appraised for an indication of

value. The process for the development of this approach is summarized as follows:

• Gather data on sales and/or offerings of similar items

• Determine their comparability to the subject item(s)

• Determine the appropriate units of comparison (if applicable)

• When necessary, conduct a quantitative or qualitative analysis with upward or downward consideration

based upon significant differences between the comparable and subject items

• Conclude to a value (or unit value) and apply the results to the subject item(s)

Income Approach

The income approach involves estimating the net present value of future benefits expected from

the subject items being appraised. If sufficient data is available to allocated income and

expenses to an appraised item, future benefits can be measured over a single period and

capitalized (direct capitalization) or they can be measured over multiple periods, discounted to a

present value using a discount rate (yield capitalization).

Method of Valuation for Subject Personal Property

The market approach was developed when an adequate number of comparable resale items could

be located. The cost approach was developed when similar new items could be located. When

the market approach yields no resale items, the cost approach is relied upon. The income

approach is infrequently used by appraisers of personal property and was not developed, due to

the lack of sufficient income and expense data that could be allocated to specific items appraised.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 100

V A L U A T I O N A N A L Y S I S

The subject is currently being operated as a crematorium and includes specific built-in

equipment for the business operation. The primary components of the equipment include:

• Human cremator retort

• Cremains processing station

• 2 walk-in coolers

• Hydraulic lift table

• Mortuary freezer

Crematory Retort

The subject includes a human crematory retort, identified as American Crematory A-200-HT

with a 400 pound capacity. This is one of the company’s smaller units however, a market

participant indicated the cost new of the system can be upward of $120,000. According to

Marshall Section 11, Page 32 under Mortuaries/Funeral Homes, a crematory retort is identified

to have a cost range of $70,750 to $104,000. Based on the provided data, we have estimated a

cost new of $100,000 for the system. This figure is utilized in the following valuation.

As support for the conclusion, sales and listings of used crematory retorts were also researched.

American Crematory marketed two comparable systems at a cost of $50,000 to $69,000,

spending on the specific system. These units were marketed as refurbished with new

components and are in a slightly superior condition to the subject unit. We are also aware of

three listings derived from Bid-On-Equipment.com which were marketed for sale at a price range

of $50,000 to $77,000 for used systems. This data generally supports the deprecation estimate

and conclusion.

Walk-In Coolers

The subject includes two walk-in coolers with dimensions of roughly 8’x10’ and 9’x10’.

According to Marshall Section 58, Page 1 under Walk-In Boxes, these units generally range from

$14,300 to $20,500 for comparable systems of 32 to 60 degrees for 50 to 100-square-foot boxes.

These costs include 7.5’ high boxes with floors. Costs include refrigeration equipment and one

door, similar to the existing equipment at the subject.

As support for the conclusion, listings of walk-in cooler boxes were research with comparable

sizes ranging between $8,000 to $10,000. These figures do not generally include the

refrigeration or other necessary components. Therefore, the Marshall estimate is considered to

be a more accurate depiction of cost new. Based on this data, an estimated cost of $15,000 for

each of the units is utilized.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 101

Other Equipment

The subject includes three additional major equipment items. Comparable items are publicly

marketed for sale and cost figures are retained within the appraiser’s workfile.

Age/Condition

The majority of the items were reportedly acquired during the previous business operations,

starting approximately in 2005. The estimated average actual age for the equipment is 10-15

years, however, the tools appear to be in working order and in relatively average to good

condition. Therefore, the effective age is estimated below the actual age at 5-15 years,

depending on the specific item.

According to B&L Cremation Systems, Inc, a specialist in the industry, “the average life of our

systems (crematory retort) exceeds 30 years.” This lifespan is reported to be achieved with

regular scheduled maintenance and periodic upgrades. Based on Marshall Valuation tables,

walk-in coolers have an economic life of 10-18 years (Section 97, Page 17). According to the

property owner, some of the smaller items have lower lifespans of roughly 10-15 years, which

may be prolonged with adequate maintenance. It is noted a slightly higher deprecation rate is

applied to the some of these items.

In the following pages are summary tables containing a brief description of the items appraised

and their cost new (by item).

Item Description Approach

Estimated

Cost New

Economic

Life

Economic

Age

Marshall

Depr. FMV

1 Crematory Retort Market/Cost $100,000 30 15 35% $65,000

2 Cremains processing station Market $7,500 15 10 57% $3,225

3 9x10 Walk-In Cooler Market/Cost $15,000 15 5 27% $10,950

4 8x10 Walk-In Cooler Market/Cost $15,000 15 5 27% $10,950

5 4-Man Mortuary Freezer Market $6,250 15 5 27% $4,563

6 Hydraulic Lift Table Market $5,500 10 5 42% $3,190

Total Cost New $97,878

Rounded $100,000

John Raggett, a sales representative with American Crematory Equipment, was provided with a

list of the stated equipment as well as photos of their current condition. The broker opined the

cost of all of the above equipment items would be near $100,000 in their estimated condition.

This figure is consistent with the analysis above.

Therefore, the fair market value is estimated at $100,000.

Exposure Time

The market value opinions have been predicated upon an exposure time of 0 to 6 months, based

upon available market data.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 102

A S S U M P T I O N S A N D L I M I T I N G C O N D I T I O N S

In acceptance of this appraisal assignment and the completion of the appraisal report submitted

herewith, it has been assumed by the appraiser(s) that:

1. Limit of Liability:

The liability of the appraisal firm and its employees is limited to the client only and to the fee actually received by

appraiser(s). Further, there is no accountability, obligation, or liability to any third party. If this report is

disseminated to anyone other than client, the client shall make such party aware of all limiting conditions and

assumptions of the assignment and related discussions. The appraiser(s) is in no way to be responsible for any costs

incurred to discover or correct any deficiencies of any type present in the property; physically, financially, and/or

legally. In the case of limited partnerships or syndication offerings or stock offerings in real estate, client agrees that

if a legal action is initiated by any lender, partner, part owner in any form of ownership, tenant, or any other party,

the client will hold the appraiser(s) completely harmless in any such action from any and all awards or settlements of

any type, regardless of outcome.

2. Copies, Publication, Distribution, Use of Report:

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(s) remain the property of the Appraiser(s) for the use of the client, the

fee being for the analytical services only.

Except as hereinafter provided, the client may distribute copies of this appraisal report in its entirety to such third

parties as he may select; however, selected portions of this 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 general public by the use of advertising media, public relations, news, sales or other

media for public communication without the prior written consent of the appraiser. (See last item in following list

for client agreement/consent).

3. Information Used:

No responsibility is assumed for accuracy of information furnished by work of others, the client, and his designee or

public records. We are not liable for such information or the work of possible subcontractors. The comparable data

relied upon in this report has been confirmed with one or more parties familiar with the transaction or from affidavit

or other source thought reasonable; all are considered appropriate for inclusion to the best of our factual judgment

and knowledge. An impractical and uneconomic expenditure of time would be required in attempting 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 sale, lease,

or other significant commitment of funds or subject property.

4. Testimony, Consultation, Completion Of Contract For Appraisal Service:

The contract for appraisal, consultation or analytical service is fulfilled and the total fee is payable upon completion

of the report. The Appraiser(s) or those assisting in preparation of the report will not be asked or required to give

testimony in court or hearing because of having made the appraisal, in full or in part, nor engage in post appraisal

consultation with client or third parties except under separate and special arrangement and at additional fee. If

testimony or deposition is required because of any subpoena, the client shall be responsible for any additional time,

fees, and charges regardless of issuing party.

5. Exhibits:

Any sketches, maps, and photographs in this report are included to assist the reader in visualizing the property and

are not necessarily to scale. Site plans are not surveys unless indicated as such.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 103

6. Legal, Engineering, Financial, Structural, and Mechanical Components; Soil Quality:

No responsibility is assumed for matters, legal in character or nature, nor of any architectural, structural, mechanical,

or engineering nature. No opinion is rendered as to the title, which is presumed to be good and marketable. The

property is appraised as if free and clear, unless otherwise stated in the appraisal report. The legal description is

assumed to be correct as used in this report as furnished by the client, their designee, or as derived by the

Appraiser(s).

Please note that no advice is given regarding mechanical equipment or structural integrity or adequacy, soils and

potential for settlement or drainage, matters concerning liens, title status, and legal marketability, and similar

matters. The client should seek assistance from qualified architectural, engineering or legal professionals regarding

such matters. The lender and owner may wish to require mechanical or structural inspections by a qualified and

licensed contractor, civil or structural engineer, architect, or other expert.

The Appraiser has inspected, as far as possible, by observation, the land and the improvements; however, it was not

possible to personally observe conditions beneath the soil or hidden structural or other components. We have not

critically inspected mechanical components within the improvements and no representations are made herein as to

these matters unless specifically stated and considered in the report. The value estimate considers there being no

such conditions that would cause a loss of value. The land or the soil of the area being appraised appears firm;

however, subsidence in the area is unknown. The Appraisers do not warrant against this condition or occurrence of

problems arising from soil conditions. Unless otherwise stated, it is assumed that there are no drainage problems

relating to the land or the improvements.

The appraisal is based on there being no hidden, unapparent, or apparent conditions of the property site, sub-soil, or

structures or toxic materials that would render it more or less valuable. No responsibility is assumed for any such

conditions or for any expertise or engineering to discover them. All mechanical components are assumed to be in

operable condition and status standard for properties of the subject type. Conditions of heating, cooling, ventilating,

electrical and plumbing equipment is considered to be commensurate with the condition of the balance of the

improvements unless otherwise stated. No judgment was made by the appraiser(s) as to adequacy of insulation, type

of insulation, or energy efficiency of the improvements or equipment; which is assumed standard for the subject

property's age and type.

If the appraiser(s) were not supplied with a termite inspection, survey or occupancy permit, no responsibility or

representation is assumed or made for any costs associated with obtaining same or for any deficiencies discovered

before or after they are obtained. No representations or warranties are made concerning the above-mentioned items.

The appraiser(s) assumes no responsibility for any costs or consequences arising due to the need, or the lack of need

for flood hazard insurance. An Agent for the Federal Flood Insurance Program should be contacted to determine the

actual need for Flood Hazard Insurance.

7. Insulation and Toxic Materials:

Unless otherwise stated in this report, the appraiser(s) signing this report have no knowledge concerning the

presence or absence of toxic materials and/or urea-formaldehyde foam insulation in existing improvements. If such

is present, the value of the property may be adversely affected, and re-appraisal at additional cost will be necessary

to estimate the effects of such.

8. Hazardous Substances of Materials:

Unless otherwise stated in this report, the existence of hazardous substances, including without limitation asbestos,

polychlorinated biphenyls, petroleum leakage or agricultural chemicals which may or may not be present on the

property, or other environmental conditions, were not called to the attention of, nor did the appraisers become aware

of such during the appraiser's inspection. The appraiser has no knowledge of the existence of such materials on or in

the property unless otherwise stated. The appraiser, however, is not qualified to test such substances or conditions. If

the presence of such substances, such as asbestos, urea-formaldehyde, foam insulation, or other hazardous

substances of environmental conditions, may affect the value of the property, the value estimated is predicated on

the assumption that there is no such condition on or in the property or in such proximity thereto that it would cause a

loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge

required to discover them. The client is urged to retain an expert in the field of environmental impact upon real

estate if so desired.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 104

9. Legality of Use:

The appraisal is based on the premise that there is full compliance with all applicable federal, state, and local

environmental regulations and laws unless otherwise stated in the report, and that all applicable zoning, building, use

regulations and restrictions of all types have been complied with unless otherwise stated in the report. It is further

assumed that all required licenses, consents, permits, or other legislative or administrative approvals from all

applicable local, state, federal and/or private authorities have been or can be obtained or renewed for any use

considered in the value estimate.

10. Component Values:

The allocation of the total valuation in this report between land and improvements, if included in this report, applies

only under the use of the property, which is assumed in this report. The separate valuations for land and building

must not be used in conjunction with any other appraisal and are invalid if so used.

11. Auxiliary and Related Studies:

No environmental or impact studies, special market study or analysis, special highest and best use study or

feasibility study has been requested or made unless otherwise specified in an agreement for services or so stated in

the report.

12. Dollar Values, Purchasing Power:

The market value estimated and the costs used are as of the date of the estimate of value. All dollar amounts are

based on the purchasing power and value of the dollar as of the date of the value estimate.

13. Value Change, Dynamic Market, Influences, Alteration of Estimate By Appraisers:

The estimated market value, which is defined in the report, is subject to change with market changes over time.

Value is highly related to exposure, time, promotional effort, terms, motivation, and conditions. The value estimate

considers the productivity and relative attractiveness of the property physically on the date of condition and

economically in the marketplace as of the date of value.

In cases of appraisals involving the capitalization of income benefits, the estimate of market value or investment

value or value in use is a reflection of such benefits and Appraiser's interpretation of income and yields and other

factors derived from general and specific client and market information. Such estimates are as of the date of the

estimate of value, and they are thus subject to change as the market changes.

The "Estimate of Market Value" in the appraisal report is not based in whole or in part upon the race, color or

national origin of the present owners or occupants of the properties in the vicinity of the property appraised.

14. Inclusions:

Except as specifically indicated and typically considered as a part of the real estate, furnishings, equipment, other

personal property, or business operations have been disregarded with only the real estate being considered in the

value estimate. In some property types, business and real estate interests and values are combined but only if so

stated within this report.

15. Proposed Improvements, Conditioned Value:

Improvements proposed, if any, on-site or off-site, as well as any repairs required are considered, for purposes of

this appraisal, to be completed in good and workmanlike manner according to information submitted and/or

considered by the appraisers. In cases of proposed construction, the appraisal is subject to change upon inspection of

the property after construction is completed.

16. Management of the Property:

It is assumed that the property that is the subject of this report will be under typically prudent and competent

management, neither inefficient nor super-efficient.

17. Fee:

The appraisers certify that, our compensation is not contingent upon the report of a predetermined value that favors

the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a

subsequent event, or that the appraisal assignment was not based on a requested minimum valuation, a specific

valuation or the approval of a loan.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 105

18. Americans With Disabilities Act:

The Americans with Disabilities Act became effective February 11, 1992. Unless otherwise stated in this report, this

appraisal firm did not conduct a compliance survey or audit, nor was one provided to determine whether or not the

subject property is in conformity with the numerous requirements of the Americans with Disabilities Act. If the

subject property is found to not be in compliance with Americans with Disabilities Act, the cost to cure the lack of

compliance may have a negative or adverse impact on the value of the subject property. No responsibility is

assumed for any such conditions, or for any expertise or knowledge required to discover them. The client is urged

to retain an expert in this field to ascertain the subject property's compliance with the Americans with Disabilities

Act.

19. Changes, Modifications:

The appraiser(s) reserves the right to alter statements, analyses, conclusions or any value estimate in the appraisal if

any new facts pertinent to the appraisal process are discovered which were unknown when the appraisal report was

prepared.

20. Confidentiality:

Appraisers, along with all providers of personal financial services, are required by federal law to inform their clients

of the policies of the firm with regard to the privacy of client nonpublic personal information. As professionals, we

understand that your privacy is very important to you and are pleased to provide you with this information.

Types of Nonpublic Personal Information We Collect: In the course of performing appraisals, we may collect what is

known as “nonpublic personal information’ about you. This information is used to facilitate the services that we

provide to you and may include the information provided to us by you directly or received by us from others with

your authorization.

Parties to Whom We Disclose Information: We do not disclose any nonpublic personal information obtained in the

course of our engagement with our clients to nonaffiliated third parties except as necessary or as required by law.

By way of example, a necessary disclosure would be to our employees, and in certain situations, to unrelated third

party consultants who need to know that information to assist us in providing appraisal services to you. All of our

employees and any third party consultants we employ are informed that any information they see as part of an

appraisal assignment is to be maintained in strict confidence within the firm. A disclosure required by law would be

a disclosure by us that is ordered by a court of competent jurisdiction with regard to a legal action to which you are a

party.

21. Third Party Liability:

ACCEPTANCE OR USE OF THIS APPRAISAL REPORT BY THE CLIENT OR ANY THIRD PARTY

CONSTITUTES ACCEPTANCE OF THE ABOVE CONDITIONS. APPRAISER LIABILITY EXTENDS ONLY

TO THE STATED CLIENT AND NOT TO SUBSEQUENT PARTIES OR USERS, AND THE LIABILITY IS

LIMITED TO THE AMOUNT OF FEE RECEIVED BY THE APPRAISER (S).

Britton-Adamo Group/ROI Appraisal

File Number 20-086 106

This report is subject to the following specific assumptions and limiting conditions:

1. It is assumed that the subject property is free and clear of liens and encumbrances.

2. The soils and sub-soils conditions are assumed by visual observation and are not

warranted by expert opinion. No Phase I environmental assessment was supplied to the

appraiser.

3. It is assumed that fee title to the subject property is vested as indicated in this report.

4. The subject legal descriptions were assumed current and accurate as provide by the Clark

County Assessor and/or surveyors.

5. It is assumed that the land area and site dimensions contained within this report are

accurate in accordance with the Clark County Assessor's plat map.

6. The subject building dimensions and sizes were assumed accurate as provide by the Clark

County Assessor.

7. The subject unit sizes were assumed accurate as provided by the property owner

according to the brochure distributed to prospective tenants.

8. The subject property is assumed free of a Mojave Desert Tortoise habitat, an Army Corps

of Engineers wetlands area and hazardous waste materials. The site was not known to

contain such conditions.

9. It has been assumed that market conditions will not significantly deteriorate due to acts of

war, or unforeseen downturns in the national or local economy. Significant downward

trends in the national or local economy would require a review and possibly a revision of

the conclusions reached in this report.

10. The appraisers used aerial photographs, fences, maps and other markers and methods to

estimate property boundaries.

11. As detailed in this report, the specific location of easements, if any, could not be

established without a title report and an ALTA survey.

12. Special Assumptions: It is noted if there are delinquent taxes on the real estate, the value

conclusion in this appraisal assumes that the delinquent taxes have been paid in full, and

there are no outstanding taxes due.

THE ACCEPTANCE AND/OR USE OF THE APPRAISAL REPORT BY THE CLIENT OR ANY

THIRD PARTY CONSTITUTES ACCEPTANCE OF THE ASSUMPTIONS AND LIMITING

CONDITIONS SET FORTH IN THE PRECEDING PARAGRAPHS. THE APPRAISER'S LIABILITY

EXTENDS ONLY TO THE SPECIFIED CLIENT, NOT TO SUBSEQUENT PARTIES OR USERS.

Britton-Adamo Group/ROI Appraisal

File Number 20-086 107

C E R T I F I C A T I O N

I (We) certify that to the best of our knowledge and belief:

1. The statements of fact contained in this report are true and correct.

2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting

conditions stated in this appraisal report, and are our personal, impartial, and unbiased professional analyses,

opinions and conclusions.

3. I (We) have no present or prospective interest in the property that is the subject of this report and I (we) have

no personal interest or bias with respect to the parties involved.

4. My (Our) compensation is not contingent upon the 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.

5. This appraisal was not based on a requested minimum valuation, a specific valuation, or the approval of a

loan.

6. The analyses, opinions, and conclusions were developed, and this report has been prepared in conformity with

the current requirements of the Uniform Standards of Professional Appraisal Practice as published by the Appraisal

Foundation, and the federal financial institutions regulating agencies. This appraisal is intended to conform to the

requirements of the Office of the Comptroller of Currency and the Commercial Appraisal Guidelines of the client.

7. Luke J Adamo, MAI has (have) made a personal inspection of the property that is the subject of this report.

8. As of the date of this report, Luke J Adamo, MAI, has completed the continuing education program for

Designated Members of the Appraisal Institute.

9. No one provided significant professional assistance to the person(s) signing this report.

10. 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 and the Standards of Professional Practice of

the Appraisal Institute.

11. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly

authorized representatives.

12. The employment of Britton-Adamo Group/ROI Appraisal was not conditioned upon the appraisal producing a

specific value within a given range. Similarly, future employment prospects with the client are not dependent upon

an appraisal producing a specified value. This appraisal assignment was not based upon a specified minimum

valuation, a specific valuation, or the approval of a loan.

13. The undersigned certifies familiarity with properties of the subject's type and is (are) competent to appraise

the subject, as requested by the client.

14. I (We) have not performed services, as an appraiser or in any other capacity, regarding the property that is the

subject of this report within the three-year period immediately preceding acceptance of this assignment.

Luke J. Adamo, MAI

Certified General Appraiser #07352

State of Nevada

Britton-Adamo Group/ROI Appraisal File Number 20-089

ADDENDA

1. ENGAGEMENT LETTER

2. SUBJECT PROPERTY INFORMATION

3. COSTAR ANALYTICS

4. DEFINITIONS

5. QUALIFICATIONS OF THE APPRAISER

Britton-Adamo Group/ROI Appraisal File Number 20-089

ENGAGEMENT LETTER

Britton-Adamo Group/ROI Appraisal File Number 20-089

SUBJECT PROPERTY INFORMATION

Britton-Adamo Group/ROI Appraisal File Number 20-089

COSTAR ANALYTICS

SE LV/Henderson

PREPARED BY

Luke Adamo

Broker

Industrial Submarket Report

Las Vegas - NV

INDUSTRIAL SUBMARKET REPORT

Submarket Key Statistics 2

Leasing 3

Rent 6

Construction 7

Sales 11

Sales Past 12 Months 12

Supply & Demand Trends 14

Rent & Vacancy 16

Sale Trends 18

SE LV/Henderson Industrial

9/27/2020Copyrighted report licensed to ROI Appraisal Britton Group - 103161

OverviewSE LV/Henderson Industrial

424 K 357 K 4.1% 4.6%12 Mo Deliveries in SF 12 Mo Net Absorption in SF Vacancy Rate 12 Mo Rent Growth

The Southeast Las Vegas/Henderson Submarket is thethird largest in Las Vegas, with approximately 18 millionSF of industrial space (around 12.9 million of which isdevoted to logistics). The area is serviced by I-215 andI-515 along with the Union Pacific Railroad, which runsalong the southern portion of the submarket. As is thecase in other Las Vegas submarkets, a large portion ofthe outlying land consists of desert areas, so mostlogistics facilities are located along the I-515 Las VegasExpressway. The tenant base there is similar to that ofSouthwest Las Vegas—most occupants service the localeconomy, and national retail distribution centers aremostly absent.

Logistics deliveries flooded the submarket in 2017 anddrove up the vacancy rate, but healthy absorption, evenwith the further addition of new supply, compressedvacancies to around 4.1%, well below the submarket'shistorical average. Over 1 million SF delivered over thepast year—triple the submarket's four-quarter historicalaverage and almost matched by strong demand. Rentgrowth continues to be solid at around 4.6% continuingthe robust gains from recent years, yet rent levels still lagbehind their historical peak. New development remainshealthy with a handful of sizable projects underway,including two buildings near the Henderson ExecutiveAirport, the 750,000-SF Google Data Center and a616,000-SF Amazon distribution building.

KEY INDICATORS

Market RentVacancy RateRBACurrent Quarter Availability RateNet Absorption

SFDeliveries SF

UnderConstruction

$0.765.0%12,896,595Logistics 7.5% 122,929 0 932,710

$0.950.4%4,209,494Specialized Industrial 0.7% 0 0 750,000

$0.858.1%1,178,917Flex 9.9% 24,198 0 0

$0.814.1%18,285,006Submarket 6.0% 147,127 0 1,682,710

ForecastAverage

HistoricalAverage

12 MonthAnnual Trends Peak When Trough When

7.1%7.8%0.3%Vacancy Change (YOY) 14.2% 2009 Q3 3.3% 2019 Q1

763,472422,743357 KNet Absorption SF 1,798,865 2018 Q2 (196,809) 2011 Q1

977,116432,747424 KDeliveries SF 1,325,187 2018 Q2 0 2016 Q1

2.2%1.0%4.6%Rent Growth 10.3% 2006 Q3 -13.9% 2010 Q1

N/A$76.8M$155 MSales Volume $308.5M 2019 Q4 $6.7M 2009 Q3

9/27/2020Copyrighted report licensed to ROI Appraisal Britton Group - 103161

Page 2

LeasingSE LV/Henderson Industrial

NET ABSORPTION, NET DELIVERIES & VACANCY

VACANCY RATE

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LeasingSE LV/Henderson Industrial

AVAILABILITY RATE

4 & 5 STAR MOST ACTIVE BUILDINGS IN SUBMARKET - PAST 12 MONTHS

Property Name/Address Rating RBA Deals Leased SF 12 Mo Vacancy 12 Mo Net Absorp SF

31,9411710 Raiders Way

AirParc Industrial74,347 1 48.3% 42,254

40,0001070 Mary Crest Rd

111,213 1 52.8% 39,422

13,3351550 Raiders Way

106,680 1 12.5% 26,818

8,1761395 Raiders Way

Building 230,602 3 45.7% 19,157

100,6921387 Raiders Way

Building 4100,692 1 75.0% 0

7,146900 W Warm Springs Rd

Bldg C86,950 1 1.6% (79)

66,700140 Cassia Way

133,378 2 38.3% (67,007)

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LeasingSE LV/Henderson Industrial

3 STAR MOST ACTIVE BUILDINGS IN SUBMARKET - PAST 12 MONTHS

Property Name/Address Rating RBA Deals Leased SF 12 Mo Vacancy 12 Mo Net Absorp SF

32,2231371 Raiders Way

Building 132,941 8 80.2% 21,283

6,2223 Sunset Way

Bldg A10,868 4 66.1% 6,132

15,1361000 N Stephanie Pl

60,000 3 2.0% 6,042

36,4381125 American Pacific Dr

37,482 5 34.0% 5,605

6,7506672 Boulder Hwy

Bldg. B20,250 3 15.6% 4,500

8,640175 Cassia Way

44,560 3 1.9% 4,296

10,649401-429 Max Ct

Max Court Business Center26,875 6 25.1% 3,495

3,4891600 Raiders Way

10,800 2 96.7% 360

28,8501051 Mary Crest Rd

Suncrest Commerce Center156,514 2 4.6% 133

20,2247355 Commercial Way

Bldg U62,000 3 4.9% 56

12,880931 American Pacific Dr

14,132 2 0% 0

6,26150 N Gibson Rd

26,133 2 0% 0

5,649921 American Pacific Dr

17,570 3 0% 0

11,4081065 American Pacific Dr

Bldg 11 Phase IV44,338 2 5.1% (63)

24,1917715 Commercial Way

41,306 5 4.9% (89)

17,0887585 Commercial Way

Phase 1 - Bldg. 163,580 3 5.4% (126)

6,680911 American Pacific Dr

AmPac Business Park I & II16,780 3 2.0% (1,604)

13,1137375 Commercial Way

Bldg V62,000 4 8.8% (8,364)

10,480980 American Pacific Dr

61,460 2 10.2% (10,367)

29,1397685 Commercial Way

Phase 2 - Bldg. 258,435 3 11.6% (11,550)

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RentSE LV/Henderson Industrial

MARKET RENT GROWTH (YOY)

MARKET RENT PER SQUARE FEET

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ConstructionSE LV/Henderson Industrial

DELIVERIES & DEMOLITIONS

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ConstructionSE LV/Henderson Industrial

441,564 763,804 1,682,710 1,734,927All-Time Annual Avg. Square Feet Delivered Square Feet Past 8 Qtrs Delivered Square Feet Next 8 Qtrs Proposed Square Feet Next 8 Qtrs

PAST 8 QUARTERS DELIVERIES, UNDER CONSTRUCTION, & PROPOSED

PAST & FUTURE DELIVERIES IN SQUARE FEET

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ConstructionSE LV/Henderson Industrial

RECENT DELIVERIES

Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner

Jan 20191600 Raiders Way

10,800 1 May 2020-

-1

Jan 20191610 Raiders Way

21,550 1 May 2020-

-2

Jan 20191620 Raiders Way

21,550 1 May 2020-

-3

Sep 20191456 Jet Stream Dr

All In Aviation105,000 1 May 2020

Ndl Group Inc

-4

Mar 20191395 Raiders Way

Building 230,602 1 Dec 2019

-

Matter Durango LLC5

Mar 20191379 Raiders Way

Building 3134,025 1 Dec 2019

-

Matter Durango LLC6

Mar 20191387 Raiders Way

Building 4100,692 1 Dec 2019

-

Burke Construction Group, Inc7

Dec 20171710 Raiders Way

AirParc Industrial74,347 1 Dec 2018

Retko Group Inc

Landstar Management8

Dec 20171720 Raiders Way

AirParc Industrial86,880 1 Dec 2018

Retko Group Inc

Landstar Management9

Jan 20181560 Executive Airport Dr

21,000 1 Nov 2018-

Entech Instruments Inc10

Jan 20181570 Executive Airport Dr

7,200 1 Nov 2018-

Entech Instruments Inc11

Jan 20181580 Executive Airport Dr

10,800 1 Nov 2018-

Freemans Carpet Services12

Jan 20181590 Executive Airport Dr

12,600 1 Nov 2018-

Andrew & Carol Wright13

Jan 20181520 Executive Airport Dr

26,250 1 Nov 2018-

Bruce D Smith14

Jan 20181530 Executive Airport Dr

13,125 1 Nov 2018-

BBS Development LLC15

May 20181530 Executive Airport Dr

13,125 1 Oct 2018-

BBS Development LLC16

Mar 20181540 Executive Airport Dr

14,375 1 Jul 2018-

PEGH Investments LLC17

Sep 2017410 Parkson Rd

5,000 1 Jul 2018-

AML Properties Inc.18

Jun 20171178 Center Point Dr

21,942 1 Jul 2018-

Reyburn Family Trust19

UNDER CONSTRUCTION

Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner

Jul 20191627 Athol Ave

Google Data Center750,000 1 Dec 2020

-

Google Inc1

Aug 201912300 Bermuda Rd

Amazon616,150 - Dec 2020

Panattoni Development Company…

Panattoni Development Company…2

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ConstructionSE LV/Henderson Industrial

UNDER CONSTRUCTION

Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner

Nov 20191720 Chaparral Rd

Bldg C183,560 1 Oct 2020

-

Panattoni Development Company3

Nov 20191725 Chaparral Rd

Bldg D83,000 1 Oct 2020

-

Panattoni Development Company4

Jan 20202201 Moser Dr

50,000 1 Oct 2020-

City of Henderson Public Works5

PROPOSED

Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner

Dec 2020Amigo & Bruner Avenue

Building F614,520 1 Jun 2021

-

-1

Mar 20211300 Wigwam Pky

Building One260,448 1 Jan 2022

-

-2

Oct 2020Executive Airport Dr

Building E200,000 1 Jun 2022

-

-3

Dec 2020Amigo & Bruner Avenue

Building H123,760 1 Jun 2021

-

-4

Dec 2020Amigo & Bruner Avenue

Building G123,760 1 Jun 2021

-

-5

Sep 2021425 E Bruner Ave

100,000 1 Sep 2022Brass Cap Development

-6

Sep 2020425 E Bruner Ave

100,000 1 Dec 2021-

Brass Cap Development7

Mar 20211350 Wigwam Pky

Building Two77,600 1 Jan 2022

-

-8

Sep 2020Volunteer Blvd & Via Insp

Odyssey Tier Industrial…65,590 1 Apr 2021

-

-9

Nov 2020905 E Dale St

A40,180 1 Feb 2021

-

-10

Nov 2020915 E Dale St

B29,069 1 Feb 2021

-

Larry L Monkarsh11

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Page 10

SalesSE LV/Henderson Industrial

Sales volume in Southeast Las Vegas is typically moremodest than in some of the area's larger submarkets,such as North Las Vegas and Airport/East Las Vegas.Properties in this submarket generally trade for less than$10 million.

Sales in the third quarter have picked up slightly from theprevious quarter but remain modest at under $10 million.Deal volume in the first half of 2020 was under $30million, with trades dropping sharply in the secondquarter as the coronavirus pandemic affected the market.One of the sizable deals was the February sale of a

130,842-SF warehouse building in the HendersonInterchange Center by Juliet Companies for $19 million($145/SF). The property, built in 2017, was acquired byCooper & Brain Oil and was 100% leased at the time ofsale.

Investment activity in 2019 received a boost due to aportfolio trade. In July BKM Capital Partners acquired a13-property portfolio from Northwestern Mutual LifeInsurance Company for $111.2 million ($125/SF). Theproperties totaled 887,910 SF and are located in thePacific Business Center in Henderson.

SALES VOLUME & MARKET SALE PRICE PER SF

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Sales Past 12 MonthsSE LV/Henderson Industrial

45 5.5% $147 3.2%Sale Comparables Avg. Cap Rate Avg. Price/SF Avg. Vacancy At Sale

SALE COMPARABLE LOCATIONS

SALE COMPARABLES SUMMARY STATISTICS

Sales Attributes Low Average Median High

Sale Price $215,000 $5,631,030 $1,345,000 $31,329,278

Price/SF $84 $147 $156 $200

Cap Rate 4.3% 5.5% 5.5% 6.7%

Time Since Sale in Months 0.1 7.1 7.1 11.9

Property Attributes Low Average Median High

Building SF 2,400 27,747 8,919 200,450

Ceiling Height 12' 19'10" 18' 32'

Docks 0 3 0 26

Vacancy Rate At Sale 0% 3.2% 0% 100%

Year Built 1955 2001 2003 2018

Star Rating 2.5

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Sales Past 12 MonthsSE LV/Henderson Industrial

Property Name - Address Rating Yr Built Bldg SF Vacancy Price Price/SF

Property

Sale Date

Sale

Cap Rate

RECENT SIGNIFICANT SALES

-1 Bldg B2017 200,450 0% $31,329,278 $156

8385 Eastgate Rd12/10/2019 -

-2 Bldg A2016 163,000 0% $25,476,040 $156

8390 Eastgate Rd12/10/2019 -

-3 140 Cassia Way1997 133,378 0% $20,846,278 $15612/10/2019 -

-4 Henderson Interchange…2017 130,842 0% $19,000,000 $145

860 Wigwam Pky2/14/2020 -

-5 1550 Raiders Way2018 106,680 12.5% $14,905,987 $14010/16/2019 4.3%

-6 150 Cassia Way1997 72,000 0% $11,253,220 $15612/10/2019 -

-7 Pacific Business Center1996 55,974 13.5% $5,250,000 $94

975 American Pacific Dr11/26/2019 -

-8 91 Corporate Park Dr2002 21,000 0% $3,250,000 $15510/8/2019 -

-9 1941 Ramrod Ave1982 29,430 0% $2,908,821 $997/21/2020 -

-10 102 Cassia Way2007 14,600 0% $2,375,000 $1633/6/2020 -

-11 1937 Ramrod Ave1982 19,134 0% $1,891,179 $997/21/2020 -

-12 340-342 Sunpac Ct1998 10,560 0% $1,525,000 $1442/24/2020 -

-13 680 Professional Ave1991 10,096 79.2% $1,479,000 $1469/30/2019 -

-14 Bldg. 82007 6,715 0% $1,345,000 $200

98 Corporate Park Dr9/25/2020 -

-15 141 Cassia Way1998 11,944 0% $1,300,000 $1097/6/2020 -

-16 517 W Sunset Rd2009 5,800 0% $1,075,000 $1859/1/2020 -

-17 181 N Gibson Rd2006 5,464 0% $1,030,000 $1899/30/2019 -

-18 549 W Sunset Rd2009 5,510 0% $990,000 $1804/9/2020 -

-19 529 W Sunset Rd2009 5,750 0% $960,000 $1673/19/2020 -

-20 Bldg 52006 4,869 0% $945,000 $194

161 N Gibson Rd12/10/2019 -

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Supply & Demand TrendsSE LV/Henderson Industrial

OVERALL SUPPLY & DEMAND

Net AbsorptionInventory

% of Inv Construction RatioSF SF Growth % Growth SFYear

2024 689,814 3.1% 2.7%626,283 1.122,900,855

2023 812,712 3.8% 3.0%655,782 1.222,211,041

2022 852,181 4.1% 2.7%579,127 1.521,398,329

2021 1,944,582 10.5% 7.2%1,480,215 1.320,546,148

2020 475,460 2.6% 1.9%347,695 1.418,601,566

YTD 158,900 0.9% 1.0%181,125 0.918,285,006

2019 298,260 1.7% 0.8%141,038 2.118,126,106

2018 1,231,974 7.4% 9.0%1,611,946 0.817,827,846

2017 878,867 5.6% 4.7%776,380 1.116,595,872

2016 649,460 4.3% 1.7%274,103 2.415,717,005

2015 0 0% 0.9%139,233 015,067,545

2014 368,845 2.5% 6.2%928,074 0.415,067,545

2013 0 0% 1.3%187,308 014,698,700

2012 (43,000) -0.3% 0.8%114,479 -14,698,700

2011 (27,641) -0.2% 2.5%363,373 -14,741,700

2010 38,547 0.3% 0.1%13,574 2.814,769,341

2009 128,628 0.9% -0.8%(111,196) -14,730,794

2008 1,263,648 9.5% 3.9%564,820 2.214,602,166

SPECIALIZED INDUSTRIAL SUPPLY & DEMAND

Net AbsorptionInventory

% of Inv Construction RatioSF SF Growth % Growth SFYear

2024 200,932 3.6% 3.1%178,072 1.15,813,938

2023 236,743 4.4% 3.1%174,430 1.45,613,006

2022 248,247 4.8% 2.4%127,599 1.95,376,263

2021 918,522 21.8% 14.7%751,670 1.25,128,016

2020 0 0% 1.2%52,501 04,209,494

YTD 0 0% 1.8%75,000 04,209,494

2019 0 0% -1.7%(71,255) -4,209,494

2018 140,692 3.5% 3.5%148,194 0.94,209,494

2017 0 0% 0%418 04,068,802

2016 0 0% 1.3%51,940 04,068,802

2015 0 0% -1.4%(57,055) -4,068,802

2014 0 0% 8.4%342,664 04,068,802

2013 0 0% 0.1%3,645 04,068,802

2012 (43,000) -1.0% -8.0%(324,859) -4,068,802

2011 (13,000) -0.3% 0.4%16,398 -4,111,802

2010 0 0% 0.3%14,299 04,124,802

2009 26,033 0.6% 4.3%178,345 0.14,124,802

2008 322,381 8.5% 2.8%114,340 2.84,098,769

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Supply & Demand TrendsSE LV/Henderson Industrial

LOGISTICS SUPPLY & DEMAND

Net AbsorptionInventory

% of Inv Construction RatioSF SF Growth % Growth SFYear

2024 488,882 3.2% 2.9%455,743 1.115,908,000

2023 575,969 3.9% 3.2%488,885 1.215,419,118

2022 603,934 4.2% 3.1%459,063 1.314,843,149

2021 1,026,060 7.8% 5.2%738,369 1.414,239,215

2020 475,460 3.7% 2.4%312,453 1.513,213,155

YTD 158,900 1.2% 0.9%120,861 1.312,896,595

2019 298,260 2.4% 1.7%222,074 1.312,737,695

2018 1,091,282 9.6% 11.9%1,483,862 0.712,439,435

2017 878,867 8.4% 6.4%726,163 1.211,348,153

2016 649,460 6.6% 2.3%244,739 2.710,469,286

2015 0 0% 1.6%161,565 09,819,826

2014 368,845 3.9% 5.7%556,761 0.79,819,826

2013 0 0% 1.9%179,184 09,450,981

2012 0 0% 4.1%392,112 09,450,981

2011 (14,641) -0.2% 3.0%280,847 -9,450,981

2010 38,547 0.4% 0.2%22,775 1.79,465,622

2009 102,595 1.1% -3.4%(316,742) -9,427,075

2008 737,651 8.6% 3.9%368,259 2.09,324,480

FLEX SUPPLY & DEMAND

Net AbsorptionInventory

% of Inv Construction RatioSF SF Growth % Growth SFYear

2024 0 0% -0.6%(7,532) -1,178,917

2023 0 0% -0.6%(7,533) -1,178,917

2022 0 0% -0.6%(7,535) -1,178,917

2021 0 0% -0.8%(9,824) -1,178,917

2020 0 0% -1.5%(17,259) -1,178,917

YTD 0 0% -1.2%(14,736) -1,178,917

2019 0 0% -0.8%(9,781) -1,178,917

2018 0 0% -1.7%(20,110) -1,178,917

2017 0 0% 4.2%49,799 01,178,917

2016 0 0% -1.9%(22,576) -1,178,917

2015 0 0% 2.9%34,723 01,178,917

2014 0 0% 2.4%28,649 01,178,917

2013 0 0% 0.4%4,479 01,178,917

2012 0 0% 4.0%47,226 01,178,917

2011 0 0% 5.6%66,128 01,178,917

2010 0 0% -2.0%(23,500) -1,178,917

2009 0 0% 2.3%27,201 01,178,917

2008 203,616 20.9% 7.0%82,221 2.51,178,917

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Rent & VacancySE LV/Henderson Industrial

OVERALL RENT & VACANCY

Market Rent

Per SF Index % Growth Vs Hist PeakYear

Vacancy

SF Percent Ppts Chg

2024 119 0.6% 10.4%$0.88 1,859,080 8.1% 0%

2023 119 2.8% 9.8%$0.87 1,796,439 8.1% 0.4%

2022 116 9.0% 6.8%$0.85 1,640,416 7.7% 1.0%

2021 106 -0.2% -2.0%$0.78 1,368,265 6.7% 1.8%

2020 106 -1.0% -1.9%$0.78 904,385 4.9% 0.6%

YTD 110 3.0% 2.1%$0.81 754,395 4.1% -0.2%

2019 107 8.4% -0.9%$0.79 776,620 4.3% 0.6%

2018 99 6.5% -8.6%$0.72 652,339 3.7% -2.6%

2017 93 6.4% -14.1%$0.68 1,032,311 6.2% 0.3%

2016 87 7.8% -19.3%$0.64 929,824 5.9% 2.2%

2015 81 8.0% -25.2%$0.59 554,467 3.7% -0.9%

2014 75 5.4% -30.7%$0.55 693,700 4.6% -3.9%

2013 71 1.1% -34.3%$0.52 1,252,929 8.5% -1.3%

2012 70 -3.4% -35.0%$0.52 1,440,237 9.8% -1.0%

2011 73 -5.8% -32.7%$0.53 1,597,716 10.8% -2.6%

2010 77 -10.6% -28.5%$0.57 1,988,730 13.5% 0.1%

2009 87 -13.5% -20.0%$0.63 1,963,757 13.3% 1.5%

2008 100 -7.6% -7.6%$0.73 1,723,933 11.8% 4.1%

SPECIALIZED INDUSTRIAL RENT & VACANCY

Market Rent

Per SF Index % Growth Vs Hist PeakYear

Vacancy

SF Percent Ppts Chg

2024 110 0.8% 0.6%$1.04 409,946 7.1% 0.2%

2023 109 3.0% -0.2%$1.03 387,220 6.9% 0.9%

2022 106 9.3% -3.2%$1.00 325,055 6.0% 2.1%

2021 97 0.1% -11.4%$0.91 204,554 4.0% 3.1%

2020 97 -2.5% -11.4%$0.91 37,793 0.9% -1.2%

YTD 101 1.4% -7.9%$0.95 15,294 0.4% -1.8%

2019 99 7.4% -9.2%$0.94 90,294 2.1% 1.7%

2018 92 4.5% -15.4%$0.87 19,039 0.5% -0.2%

2017 88 4.8% -19.0%$0.83 26,541 0.7% 0%

2016 84 7.2% -22.8%$0.80 26,959 0.7% -1.3%

2015 79 7.5% -28.0%$0.74 78,899 1.9% 1.4%

2014 73 4.0% -33.0%$0.69 21,844 0.5% -8.4%

2013 70 1.8% -35.6%$0.66 364,508 9.0% -0.1%

2012 69 -2.3% -36.8%$0.65 368,153 9.0% 6.9%

2011 71 -7.1% -35.3%$0.67 86,294 2.1% -0.7%

2010 76 -11.1% -30.3%$0.72 115,692 2.8% -0.3%

2009 86 -14.3% -21.6%$0.81 129,991 3.2% -3.7%

2008 100 -8.5% -8.5%$0.94 282,303 6.9% 4.9%

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Rent & VacancySE LV/Henderson Industrial

LOGISTICS RENT & VACANCY

Market Rent

Per SF Index % Growth Vs Hist PeakYear

Vacancy

SF Percent Ppts Chg

2024 125 0.4% 11.7%$0.81 1,318,321 8.3% -0.1%

2023 125 2.7% 11.2%$0.81 1,285,938 8.3% 0.3%

2022 122 8.9% 8.3%$0.79 1,199,613 8.1% 0.7%

2021 112 -0.3% -0.5%$0.73 1,055,498 7.4% 1.6%

2020 112 -0.3% -0.3%$0.73 768,203 5.8% 1.1%

YTD 116 3.7% 3.7%$0.76 643,235 5.0% 0.2%

2019 112 9.0% 0%$0.73 605,196 4.8% 0.2%

2018 103 7.4% -8.3%$0.67 561,951 4.5% -3.9%

2017 96 7.4% -14.6%$0.62 954,531 8.4% 0.8%

2016 89 8.3% -20.5%$0.58 801,827 7.7% 3.6%

2015 82 8.6% -26.6%$0.54 397,106 4.0% -1.6%

2014 76 6.5% -32.4%$0.49 558,671 5.7% -2.2%

2013 71 0.5% -36.5%$0.46 746,587 7.9% -1.9%

2012 71 -3.9% -36.9%$0.46 925,771 9.8% -4.1%

2011 74 -5.1% -34.3%$0.48 1,317,883 13.9% -3.1%

2010 78 -10.4% -30.8%$0.50 1,613,371 17.0% 0.1%

2009 87 -13.3% -22.7%$0.56 1,597,599 16.9% 4.3%

2008 100 -7.2% -10.9%$0.65 1,178,262 12.6% 3.2%

FLEX RENT & VACANCY

Market Rent

Per SF Index % Growth Vs Hist PeakYear

Vacancy

SF Percent Ppts Chg

2024 110 0.4% 3.4%$0.91 130,813 11.1% 0.6%

2023 110 2.7% 3.0%$0.91 123,281 10.5% 0.6%

2022 107 9.0% 0.3%$0.88 115,748 9.8% 0.6%

2021 98 -0.3% -8.0%$0.81 108,213 9.2% 0.8%

2020 98 -1.5% -7.7%$0.81 98,389 8.3% 1.5%

YTD 102 2.5% -4.0%$0.85 95,866 8.1% 1.2%

2019 100 7.5% -6.3%$0.83 81,130 6.9% 0.8%

2018 93 7.0% -12.9%$0.77 71,349 6.1% 1.7%

2017 87 4.2% -18.6%$0.72 51,239 4.3% -4.2%

2016 83 5.8% -21.9%$0.69 101,038 8.6% 1.9%

2015 79 5.0% -26.2%$0.65 78,462 6.7% -2.9%

2014 75 1.9% -29.7%$0.62 113,185 9.6% -2.4%

2013 73 2.8% -31.0%$0.61 141,834 12.0% -0.4%

2012 72 -4.5% -32.8%$0.59 146,313 12.4% -4.0%

2011 75 -6.8% -29.7%$0.62 193,539 16.4% -5.6%

2010 80 -9.3% -24.5%$0.67 259,667 22.0% 2.0%

2009 89 -11.4% -16.7%$0.73 236,167 20.0% -2.3%

2008 100 -6.1% -6.1%$0.83 263,368 22.3% 7.8%

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Sale TrendsSE LV/Henderson Industrial

OVERALL SALES

Completed Transactions (1)

Turnover Avg Price/SFDeals VolumeYear

Market Pricing Trends (2)

Avg Price Price IndexAvg Cap Rate Price/SF Cap Rate

2024 -- - -- 188- $155.54 4.9%

2023 -- - -- 187- $154.25 4.9%

2022 -- - -- 178- $146.60 4.9%

2021 -- - -- 146- $120.75 5.4%

2020 -- - -- 151- $124.30 5.7%

YTD $38M27 1.9% $137.56$2,159,706 165- $136.34 5.3%

2019 $308.5M69 13.8% $129.06$6,130,205 1577.2% $129.72 5.4%

2018 $227M61 12.5% $115.66$4,244,716 1466.5% $120.56 5.4%

2017 $49.4M57 4.0% $115.53$1,788,270 1287.2% $105.65 5.7%

2016 $90.1M28 5.9% $97.34$3,573,510 1176.0% $96.55 5.8%

2015 $23.2M38 2.1% $94.00$721,880 102- $84.03 6.2%

2014 $73.7M31 5.1% $99.47$3,293,818 907.8% $74.10 6.6%

2013 $53.1M49 7.9% $72.78$1,696,071 827.7% $67.52 6.8%

2012 $11.5M32 1.7% $61.58$527,408 8311.1% $68.20 6.8%

2011 $20.2M39 3.4% $53.72$912,366 818.9% $66.52 6.9%

2010 $27.7M37 4.9% $67.12$793,595 819.3% $66.45 7.0%

2009 $13M8 1.3% $66.55$2,161,825 83- $68.55 7.0%

(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.

(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

SPECIALIZED INDUSTRIAL SALES

Completed Transactions (1)

Turnover Avg Price/SFDeals VolumeYear

Market Pricing Trends (2)

Avg Price Price IndexAvg Cap Rate Price/SF Cap Rate

2024 -- - -- 193- $159.22 4.8%

2023 -- - -- 191- $157.52 4.7%

2022 -- - -- 181- $149.29 4.8%

2021 -- - -- 148- $122.26 5.3%

2020 -- - -- 152- $125.66 5.6%

YTD -- - -- 167- $138.31 5.2%

2019 $19.2M3 4.7% $98.86$19,150,000 159- $131.59 5.3%

2018 $3M3 0.5% $139.54$1,002,333 149- $123.06 5.3%

2017 $1.5M5 1.9% $67.01$1,501,000 129- $106.29 5.6%

2016 $2.9M4 0.7% $101.02$735,313 118- $97.73 5.7%

2015 $2.5M2 0.7% $84.78$1,253,436 104- $86.07 6.0%

2014 $5.8M5 1.4% $114.04$1,456,000 92- $76.37 6.4%

2013 $2.6M6 9.4% $86.02$871,667 84- $69.78 6.6%

2012 -- - -- 86- $71.08 6.6%

2011 $855K2 0.4% $54.39$427,500 81- $67.09 6.8%

2010 $299.1K2 7.6% $52.01$299,050 81- $67.09 6.9%

2009 $10.5M3 4.2% $60.84$4,812,500 84- $69.56 6.9%

(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.

(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

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Sale TrendsSE LV/Henderson Industrial

LOGISTICS SALES

Completed Transactions (1)

Turnover Avg Price/SFDeals VolumeYear

Market Pricing Trends (2)

Avg Price Price IndexAvg Cap Rate Price/SF Cap Rate

2024 -- - -- 191- $154.62 4.9%

2023 -- - -- 189- $153.46 4.9%

2022 -- - -- 180- $145.99 4.9%

2021 -- - -- 148- $120.40 5.4%

2020 -- - -- 153- $123.91 5.7%

YTD $34.2M16 2.1% $138.48$2,627,308 167- $135.79 5.3%

2019 $274.6M49 16.7% $132.43$6,838,834 1596.1% $129.21 5.4%

2018 $206.7M51 16.5% $115.46$4,674,840 1486.4% $119.96 5.4%

2017 $35.5M33 3.7% $118.07$1,869,475 1307.3% $105.37 5.6%

2016 $85.7M21 8.5% $96.81$4,285,125 1186.0% $96.08 5.8%

2015 $16.6M28 2.4% $95.91$701,136 102- $83.10 6.2%

2014 $58.7M17 6.2% $99.81$4,846,302 907.4% $73.06 6.6%

2013 $44.6M24 7.1% $69.86$2,099,357 827.4% $66.41 6.8%

2012 $8.5M23 1.8% $57.93$516,658 83- $67.14 6.8%

2011 $15.8M20 3.5% $54.04$1,025,896 818.9% $65.93 6.9%

2010 $24.9M32 3.9% $66.78$807,700 819.3% $65.56 7.0%

2009 $254.1K1 0% $55.16$254,123 83- $67.30 7.1%

(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.

(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

FLEX SALES

Completed Transactions (1)

Turnover Avg Price/SFDeals VolumeYear

Market Pricing Trends (2)

Avg Price Price IndexAvg Cap Rate Price/SF Cap Rate

2024 -- - -- 154- $150.96 5.5%

2023 -- - -- 153- $149.87 5.5%

2022 -- - -- 145- $142.64 5.6%

2021 -- - -- 121- $118.70 6.1%

2020 -- - -- 125- $123.18 6.3%

YTD $3.9M11 7.4% $129.95$640,000 137- $134.54 6.0%

2019 $14.8M17 15.2% $119.76$1,534,100 1308.3% $128.06 6.1%

2018 $17.3M7 12.8% $114.71$2,711,666 1196.9% $117.19 6.1%

2017 $12.3M19 13.7% $118.63$1,579,000 1087.0% $106.36 6.3%

2016 $1.5M3 1.0% $128.38$694,000 99- $97.12 6.4%

2015 $4M8 3.9% $92.69$428,880 88- $86.50 6.8%

2014 $9.1M9 9.0% $90.19$1,414,064 788.0% $76.99 7.2%

2013 $5.9M19 9.7% $96.86$839,529 738.0% $71.25 7.4%

2012 $3M9 5.9% $75.13$570,405 7011.1% $68.82 7.5%

2011 $3.6M17 13.2% $52.21$729,063 72- $71.13 7.4%

2010 $2.5M3 2.8% $73.54$817,387 76- $74.39 7.4%

2009 $2.3M4 1.5% $123.59$465,000 81- $79.26 7.3%

(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.

(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

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Page 19

Las Vegas - NV

PREPARED BY

Luke Adamo

Broker

Industrial Market Report

INDUSTRIAL MARKET REPORT

Market Key Statistics 2

Leasing 3

Rent 7

Construction 9

Under Construction Properties 11

Sales 13

Sales Past 12 Months 14

Economy 16

Market Submarkets 19

Supply & Demand Trends 21

Rent & Vacancy 23

Sale Trends 25

Las Vegas Industrial

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OverviewLas Vegas Industrial

4.3 M 1.7 M 6.3% 4.4%12 Mo Deliveries in SF 12 Mo Net Absorption in SF Vacancy Rate 12 Mo Rent Growth

The Las Vegas industrial market is looking to capitalizeon its favorable location, being within a day's drive toSouthern California and large portions of Arizona. Thecity of Las Vegas is promoting the metro as a “majorWest Coast logistics hub” through infrastructureimprovements and by leveraging existing rail lines andairfreight facilities.

This is part of an ongoing effort to diversify the localeconomy, and government officials in North Las Vegasare looking to lure new companies with quick permittingand financial incentives. The past several years haveseen numerous national tenants locate or expand theirpresence in Las Vegas. Companies including Amazon,Sephora, FedEx and Bed Bath & Beyond have all takenspace in the market in last few years.

Las Vegas has seen a number of infrastructureimprovements over the past few years aimed atimproving traffic flow. The Nevada Department of

Transportation began a multiyear, multiphase, $200million-plus upgrade of U.S. 95 in 2010. Another projectcompleted in 2019 is the $1.5 billion Project Neon, whichwidened 3.7 miles of I-15 and provides a directconnection between U.S. 95 and I-15 while improvingthe Spaghetti Bowl interchange.

Construction levels remain elevated after developershave already inundated the metro, particularly the NorthLas Vegas Submarket. Rent growth was strong over thepast several years but started to slow recently as thecoronavirus pandemic impacts the economy. Vacanciesare also forecast to rise as demand falters and themillions of SF in the pipeline deliver.

Investment volume slowed in the third quarter after asolid start to the year, where volume received a boostfrom a sizable trade. This follows 2019 which saw salessurpass $1 billion for the second straight year and sawthe highest sales volume over the past decade.

KEY INDICATORS

Market RentVacancy RateRBACurrent Quarter Availability RateNet Absorption

SFDeliveries SF

UnderConstruction

$0.737.1%105,996,344Logistics 8.7% 56,519 798,672 3,366,809

$0.853.0%18,451,483Specialized Industrial 7.7% 125,914 0 1,684,230

$1.015.4%22,244,896Flex 6.3% (121,738) 0 15,960

$0.796.3%146,692,723Market 8.2% 60,695 798,672 5,066,999

ForecastAverage

HistoricalAverage

12 MonthAnnual Trends Peak When Trough When

8.9%8.3%1.7%Vacancy Change (YOY) 14.3% 2010 Q1 4.0% 2006 Q2

3,376,8543,109,8081.7 MNet Absorption SF 8,585,293 2018 Q2 (4,087,791) 2010 Q1

5,297,3913,456,3454.3 MDeliveries SF 8,626,361 2007 Q2 63,108 2012 Q3

2.1%0.9%4.4%Rent Growth 8.7% 2019 Q3 -13.5% 2010 Q1

N/A$563.4M$1.8 BSales Volume $2B 2020 Q2 $74.4M 2010 Q2

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LeasingLas Vegas Industrial

The Las Vegas industrial market has started attractingmore national and regional companies over the pastseveral years as city officials have been working toreinvent the area as a regional logistics hub. As a result,logistics development is increasing with a number ofmajor speculative projects and preleased buildingsunderway. In the past, the Las Vegas industrial markettypically served local tenants, which constrained demandfor large-scale industrial development.

The vacancy rate recently rose slightly to around 6.3%,with new deliveries outpacing demand. Net absorptionmaintained a healthy pace the past few years, keepingvacancies compressing even in the face of a sizableincrease in speculative construction. Nearly 20 million SFhas delivered in Las Vegas since 2016, and millionsmore SF of space are under construction. Vacancies areforecast to rise over the next several quarters with thecontinued influx of new supply and weakening demanddue to the pandemic.

Even with the uncertain economic landscape surrounding

the coronavirus pandemic, several sizable leases havebeen signed in 2020. While a number of the leases weresigned in the first quarter prior to the pandemic, a fewsignificant ones have taken place since, two for largedistribution companies. In 20Q2, fulfillment servicescompany Ruby Has signed on for more than 373,000 SFin the Speedway submarket. Recently in 20Q3, FedExGround Package Service leased over 632,000 SF inNorth Las Vegas.

The number of large tenants leasing space in Las Vegashas grown in recent years and includes quite a fewnational brands. Development is underway on a new750,000-SF Google Data Center in Henderson. Sephorasigned a lease for a new 755,000-SF distributionbuilding in the Tropical Distribution Center in theSpeedway Submarket that delivered in March 2019.Amazon expanded its presence in the market in 2019,leasing an 855,000-SF distribution building alsocompleted in March in the Tropical Distribution Center,Amazon's third location in North Las Vegas.

NET ABSORPTION, NET DELIVERIES & VACANCY

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LeasingLas Vegas Industrial

VACANCY RATE

AVAILABILITY RATE

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LeasingLas Vegas Industrial

12 MONTH NET ABSORPTION SF IN SELECTED BUILDINGS

3rd QtrBuilding Name/Address Submarket Bldg SF Vacant SF

1st Qtr 2nd Qtr 4th Qtr 12 Month

Net Absorption SF

North Las Vegas Ind 322,560 0 322,560 0 0 0 322,5604800 E Tropical Pky

North Las Vegas Ind 254,548 0 254,548 (10,000) 10,000 0 254,548Sunpoint Crossing (1)

Speedway Ind 213,818 0 213,818 0 0 0 213,818Centennial Commerce Center

North Las Vegas Ind 731,561 213,989 0 0 203,884 0 203,884Northgate Distribution Center

North Las Vegas Ind 169,628 0 169,628 0 0 0 169,628Bldg 2

Speedway Ind 168,000 0 54,212 68,333 45,455 0 168,000Speedway Commerce Center IV

North Las Vegas Ind 207,689 43,884 0 163,805 0 0 163,805Sunpoint Crossing (2)

Speedway Ind 333,704 0 90,163 0 0 0 126,387Harsch Speedway Commerce C…

North Las Vegas Ind 271,616 0 0 (67,584) 67,584 0 124,546Sunrise Industrial Park

SE LV/Henderson Ind 105,000 0 0 105,000 0 0 105,000All In Aviation

North Las Vegas Ind 102,948 0 102,948 0 0 0 92,8771840 Aerojet Way

North Las Vegas Ind 80,278 0 78,518 0 0 0 78,690Bldg 1

SW Las Vegas Ind 83,899 6,380 30,755 21,886 12,878 0 77,519Matter Business Park at Warm S…

Speedway Ind 251,800 176,600 0 75,200 0 0 75,200LogistiCenter at Speedway

SE LV/Henderson Ind 75,000 0 75,000 0 0 0 75,000VSR Industries

SE LV/Henderson Ind 74,347 0 73,840 0 0 0 73,840AirParc Industrial

SW Las Vegas Ind 71,093 0 71,093 0 0 0 71,093Southwest Commerce Center

3,517,489 440,853 1,537,083 356,640 339,801 0 2,396,395Subtotal Primary Competitors

143,175,234 8,863,120 (246,204) (1,008,669) (279,106) 0 (744,610)Remaining Las Vegas Market

146,692,723 9,303,973 1,290,879 (652,029) 60,695 0 1,651,785Total Las Vegas Market

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LeasingLas Vegas Industrial

TOP INDUSTRIAL LEASES PAST 12 MONTHS

Building Name/Address Submarket Leased SF Tenant Name Tenant Rep Company Leasing Rep CompanyQtr

5265 N Sloan Ln North Las Vegas 632,324 FedEx Ground Package S… - CBREQ3 20

6710 E North Belt Rd Speedway 373,363 Ruby Has Berkshire Hathaway… CBREQ2 20

3049 E Washburn Rd North Las Vegas 350,528 Whitebox Technologies, L… - CBRE;Cushman & Wa…Q3 20

5605 N Hollywood Blvd Speedway 285,547 Lowe's Home Center - Colliers InternationalQ1 20

5430 Donovan Way North Las Vegas 203,884 Camco Manufacturing, Inc. Cushman & Wakefield CBREQ1 20

6335 N Hollywood Blvd Speedway 190,362 Lucky Top - Cushman & WakefieldQ3 20

5801 N Nicco Way Speedway 170,272 - Logic Commercial R… CBREQ2 20

4390 Flossmoor St * North Las Vegas 135,250 TemperPack - CBREQ4 19

3732 N Las Vegas Blvd North Las Vegas 115,243 Updike Distribution Logistics Colliers International CBREQ4 19

3450 N Lamb Blvd North Las Vegas 103,000 The Distribution Point Colliers International CBREQ2 20

1387 Raiders Way SE LV/Henderson 100,692 Creative Technology JLL Colliers InternationalQ2 20

3702 N Las Vegas Blvd North Las Vegas 94,686 - - CBREQ3 20

74 W Craig Rd North Las Vegas 89,032 One Stop Mailing NAI Vegas JLLQ3 19

6565 Nascar St Speedway 75,800 Dialog Direct JLL CBREQ1 20

3125-3135 Marco St North Las Vegas 75,000 All American Convention… NAI Vegas JLLQ4 19

2821 Marion Dr North Las Vegas 67,584 Amazon - Logic Commercial Real…Q3 20

4025 E Cheyenne Ave North Las Vegas 66,000 Bekins Commercial Install… - NAI VegasQ2 20

6565 Nascar St Speedway 64,400 - Cushman & Wakefield CBREQ2 20

6565 Nascar St Speedway 63,600 May Manufacturing, LLC - CBREQ3 20

3450 N Lamb Blvd North Las Vegas 60,794 The Distribution Point - CBREQ4 19

3702 N Las Vegas Blvd North Las Vegas 55,552 - - CBREQ2 20

2020 Mendenhall Dr North Las Vegas 53,200 Filmwerks Char Luxury Real Es… Colliers InternationalQ4 19

4208 W Cheyenne Ave North Las Vegas 50,670 Botanic Beauty Products,… Colliers International Colliers InternationalQ2 20

8035 Dean Martin Dr SW Las Vegas 50,000 - - Colliers InternationalQ3 20

3920 W Sunset Rd * SW Las Vegas 50,000 Codale Electric Supply - Majestic Realty Co.Q2 20

4151 Industrial Center Dr North Las Vegas 49,392 Ship Hero LLC - JLLQ2 20

70 W Craig Rd North Las Vegas 48,122 D'Andrea Visual Commun… - JLLQ4 19

2951 Marion Dr North Las Vegas 47,520 Amazon - Logic Commercial Real…Q3 20

4550 Engineers Way North Las Vegas 47,060 - - NAI VegasQ1 20

470 Mirror Ct * SE LV/Henderson 46,649 GT Ventures, LLC - -Q3 19

3101 N Marion Dr North Las Vegas 46,080 Corporate Design Concepts NAI Vegas Colliers InternationalQ4 19

7350 Prairie Falcon Rd Northwest Las Vegas 45,000 Las Vegas Basketball Ce… Albright Callister & A… MDL GroupQ4 19

6335 N Hollywood Blvd Speedway 43,916 RumbleOn - Harsch Investment Pro…Q4 19

4750 W Sunset Rd SW Las Vegas 42,000 - - Sun Commercial Real…Q3 20

5607 Edmond St SW Las Vegas 41,455 - - Colliers InternationalQ4 19

6255 N Hollywood Dr Speedway 40,803 Wholesome Goods - Harsch Investment Pro…Q4 19

3702 N Las Vegas Blvd North Las Vegas 40,222 Golden Star Inc. NAI Vegas CBREQ3 20

1070 Mary Crest Rd SE LV/Henderson 40,000 Apex Plastics, LLC Wardley Real Estate CBREQ1 20

6770 Bermuda Rd * Airport/E Las Vegas 39,995 Hajoca - NAI VegasQ4 19

6425 Santa Margarita St SW Las Vegas 38,972 - - RealComm AdvisorsQ3 20

*Renewal

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RentLas Vegas Industrial

Industrial rents in Las Vegas have just recovered fromlosses sustained during the last recession before beingforecast to decrease in the near-term as the market isaffected by the coronavirus pandemic. Average askingrents are nearly $9.40/SF, on par with their peak in2007, following sustained positive rent growth over thepast decade.

Rent growth in Las Vegas has slowed this year as thecoronavirus pandemic impacts the market. Year-over-year rent gains are around 4.4%, down from 8.7% fourquarters ago. Las Vegas industrial rent growth in 2019ran counter to CoStar's National Index, which saw gainsdecline each quarter. Las Vegas experienced a laterrecovery than most industrial markets, following fiveconsecutive years of rent losses. Rent growth reallypicked up in starting in 2014 and averaged nearly 7.5%annually from 2015 to 2019.

Logistics properties have the lowest average asking rentsof the industrial property types in Las Vegas. However,logistics is seeing the highest year-over-year rent gainsof around 6%, down from approximately 9% in late 2019.Average asking rents for logistics buildings are around7% lower than the market average, despite seeingaverage annual rent growth of more than 8% from 2015to 2019. While logistics properties have the lowest askingrents, the strong rent growth over the past several yearshas boosted asking rent to nearly 5% above their peak

from 2007. By contrast, asking rents for specializedindustrial and flex properties have still not fullyrecovered.

The coronavirus pandemic and the continued influx ofnew supply is weighing on rent growth in North LasVegas. Rent growth has recently slowed to around 5.5%,down from around 9.5% in late 2019 when thesubmarket saw some of the highest rent gains in themarket. North Las Vegas is the metro's largestsubmarket in terms of inventory and continues to be thetarget of the majority of the past decade's newdevelopment. Nearly all the new construction in NorthLas Vegas over the past several years has been logisticsproperties, as well as the majority of new development inthe metro as a whole. Logistics continues to see the topgains in the submarket, well above those for flex andspecialized industrial properties.

The Northwest Submarket, though one of the smallestsubmarkets by inventory, has the highest average askingrents in the metro at around $12.40/SF. This is due tothe relatively high proportion of flex inventory in thesubmarket compared to logistics and specializedindustrial. While flex has seen more moderate rentgrowth the past several years, average asking rents forflex are close to 30% above the metro and over 35%more than logistics average asking rents.

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RentLas Vegas Industrial

MARKET RENT GROWTH (YOY)

MARKET RENT PER SQUARE FEET

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ConstructionLas Vegas Industrial

Industrial construction in Las Vegas remains elevatedeven with the uncertainty surrounding the coronaviruspandemic. Approximately 5.1 million SF of industrialspace is underway, in addition to the nearly 20 million SFdelivered since the start of 2016. New development wasboosted by solid demand with positive net absorptionexceeding 3% of inventory in four of the past five years,which boosted confidence for new development. Withdemand anticipated to slow due to the pandemic, thepace of construction may slow as well as developerspostpone new groundbreakings.

Logistics-oriented warehouse and distribution spacecontinues to dominate new development, atapproximately 70% of the metro's total industrialconstruction. Logistics has been the top industrialproperty type for new construction over the past several

years as ecommerce gains in popularity and Las Vegasworks to become a regional distribution hub.

However, for the first time in several yeas the amount ofspecialized industrial space in development is rising. Thelargest property underway in the metro is the build-to-suit that broke ground in summer 2019 in the SE LasVegas/Henderson Submarket: the 750,000-SF GoogleData Center.

North Las Vegas continues to be the top submarket fornew development, with several sizable buildings underconstruction. One of the largest projects underway is a652,000-SF building in the Golden Triangle LogisticsCenter. The majority of space under way in North LasVegas is speculative, with only around 25% of the SFunder construction preleased.

DELIVERIES & DEMOLITIONS

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ConstructionLas Vegas Industrial

SUBMARKET CONSTRUCTION

Average Building Size

RankUnder Constr

Under Construction Inventory

All ExistingSF (000) Pre-Leased SF (000)SubmarketNo. RankBldgs Pre-Leased %

1 North Las Vegas 11 2,312 210,14318.8% 4 40,318435 2

2 SE LV/Henderson 5 1,683 336,54284.2% 2 32,1351,416 1

3 SW Las Vegas 5 526 105,10747.0% 3 30,568247 4

4 Speedway 2 297 148,6290% 5 110,4020 3

5 Airport/E Las Vegas 9 238 26,4420% 5 30,6740 5

6 Outlying NE Clark Cty 1 12 11,950100% 1 15,88212 6

7 Central Las Vegas 0 - -- - 27,004- -

8 Northwest Las Vegas 0 - -- - 22,241- -

9 Outlying S Clark Cnty 0 - -- - 7,176- -

10 West Las Vegas 0 - -- - 22,982- -

Totals 33 5,067 153,54541.6% 32,7372,109

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Under Construction PropertiesLas Vegas Industrial

33 5,066,999 4.1% 41.6%Properties Square Feet Percent of Inventory Preleased

UNDER CONSTRUCTION PROPERTIES

UNDER CONSTRUCTION

Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner

Jul 20191627 Athol Ave

Google Data Center750,000 1 Dec 2020

-

Google Inc1

Oct 20193195 E Washburn Rd

Bldg 2652,010 1 Oct 2020

-

Golden Triangle Development Inc2

Aug 201912300 Bermuda Rd

Amazon616,150 - Dec 2020

Panattoni Development Company…

Panattoni Development Company…3

Aug 20194004 W Cheyenne Ave

E479,579 1 Oct 2020

-

Matter Durango LLC4

Oct 20193049 E Washburn Rd

Bldg 1350,528 1 Oct 2020

-

Earth Day Texas, Inc5

Oct 20193777 Marion Dr

282,220 1 Oct 2020-

Becknell6

Jan 20208050 W Valley View Blvd

Building 3241,920 1 Oct 2020

-

-7

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Under Construction PropertiesLas Vegas Industrial

UNDER CONSTRUCTION

Property Name/Address Rating Bldg SF Stories Start Complete Developer/Owner

Feb 20206250 Howdy Wells Ave

North Las Vegas Busine…190,553 1 Oct 2020

-

Becknell Industrial8

Nov 20191720 Chaparral Rd

Bldg C183,560 1 Oct 2020

-

Panattoni Development Company9

Jan 20208015 Dean Martin Dr

Building 1174,313 1 Oct 2020

-

Juliet Companies, LLC10

Jun 20202081 E Sunset Rd

LogistiCenter at Sunset151,200 1 Apr 2021

-

-11

Feb 20203679 N Civic Center Dr

Civic Center at Gowan118,021 1 Dec 2020

-

Cecil J & Richard J Hallinan12

Feb 20205360 N Beesley Dr

106,705 1 Oct 2020-

Becknell Industrial13

Mar 2020Lone Mountain Rd & Berg S

Lone Mountain Logistics93,995 1 Nov 2020

-

Pycior Romuald14

Aug 2019W Cheyenne Ave. & Sim…

86,920 1 Oct 2020-

Odyssey Real Estate Capital15

Nov 20191725 Chaparral Rd

Bldg D83,000 1 Oct 2020

-

Panattoni Development Company16

Aug 20193774 W Cheyenne Ave

D72,349 1 Oct 2020

-

Matter Durango LLC17

Aug 20194204 W Cheyenne Ave

B66,484 1 Oct 2020

-

Matter Durango LLC18

Aug 20193778 W Cheyenne Ave

C58,794 1 Oct 2020

-

Burke Construction Group, Inc19

Jan 20208035 Dean Martin Dr

Building 255,000 1 Oct 2020

-

-20

Aug 20194208 W Cheyenne Ave

A50,670 1 Oct 2020

-

Matter Durango LLC21

Jan 20202201 Moser Dr

50,000 1 Oct 2020-

City of Henderson Public Works22

Feb 202013850 S Decatur Blvd

36,810 1 Jan 2021-

Petersen Management23

Mar 20197090 W Arby Ave

17,494 1 Dec 2020-

County of Clark, Dept of Aviation24

Jun 20204000 E Patrick Ln

15,960 2 Dec 2020-

-25

Apr 20205456 Stephanie St

Building 612,002 2 Feb 2021

-

-26

Mar 2020800 Agave Rd

11,950 1 Oct 2020-

-27

Apr 20205456 Stephanie St

Building 211,548 2 Feb 2021

-

-28

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Page 12

SalesLas Vegas Industrial

Investment has slowed in the third quarter following solidsales in the first half of the year, which was bolstered bya significant trade. Transactions in 2019 surpassed $1billion for the second year in a row and made it a banneryear for sales over the past decade. Sales volumetotaled just over $1 billion in 2018, up from around $715million in 2017 and significantly higher than the metro'shistorical average of about $520 million. Investors appearto be more cautious in the current economic environmentand sales are unlikely to reach the peak levels of thepast couple of years.

One of the notable transactions of 2020 was the Maysale of an Amazon distribution building by developerVanTrust Real Estate for $110 million ($129/SF).Preylock Holdings acquired the 855,000-SF building inthe Tropical Distribution Center, built in 2019, and 100%leased to Amazon.

More recently in July, the Moulton Company acquired a322,560-SF distribution building in North Las Vegas for$45.2 million ($140/SF). The property was built in 2020and was sold by developer VanTrust Real Estate 100%leased to a single tenant.

Logistics continues to see the highest share of dealvolume in 2020, after making up approximately 75% ofthe total sales volume in the metro in 2018 and 2019.Along with sales volume, Las Vegas' average price perSF is rising, now approximately 20% higher than thenation's. Cap rates have compressed by around 150basis points over the past decade to around 5.5%.

Developers have been some of the top sellers in themarket recently as they sell newly completed properties,many to REITs, private equity, and institutional investors,which have been some of the top buyers over the pastfew years.

SALES VOLUME & MARKET SALE PRICE PER SF

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Sales Past 12 MonthsLas Vegas Industrial

284 6.6% $134 18.8%Sale Comparables Avg. Cap Rate Avg. Price/SF Avg. Vacancy At Sale

SALE COMPARABLE LOCATIONS

SALE COMPARABLES SUMMARY STATISTICS

Sales Attributes Low Average Median High

Sale Price $215,000 $9,605,996 $2,678,174 $110,000,000

Price/SF $20 $134 $144 $1,061

Cap Rate 4.3% 6.6% 6.6% 9.2%

Time Since Sale in Months 0.1 7.4 7.9 12.0

Property Attributes Low Average Median High

Building SF 1,650 54,533 11,373 855,000

Ceiling Height 8' 21'5" 20' 41'

Docks 0 7 0 124

Vacancy Rate At Sale 0% 18.8% 0% 100%

Year Built 1952 1998 1999 2020

Star Rating 2.4

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Sales Past 12 MonthsLas Vegas Industrial

Property Name - Address Rating Yr Built Bldg SF Vacancy Price Price/SF

Property

Sale Date

Sale

Cap Rate

RECENT SIGNIFICANT SALES

-1 Amazon2019 855,000 0% $110,000,000 $129

6001 E Tropical Pky5/11/2020 -

-2 Bldg. 92018 731,561 57.1% $90,204,236 $123

5430 Donovan Way9/26/2019 -

-3 Northgate Distribution C…2017 558,286 0% $73,660,498 $132

4490 Nexus Way9/26/2019 -

-4 The Honest Co2017 570,810 0% $70,383,030 $123

5550 Donovan Way9/26/2019 -

-5 Bldg 162007 513,240 0% $67,717,110 $132

3837 Bay Lake Trail9/26/2019 -

-6 5605 N Hollywood Blvd2019 670,798 100% $62,384,214 $931/7/2020 5.3%

-7 7000 Placid St1994 309,208 0% $54,010,407 $1759/26/2019 -

-8 4800 E Tropical Pky2020 322,560 0% $45,226,000 $1407/22/2020 -

-9 SunPoint Business Center2016 311,501 0% $42,925,787 $138

2695 N Lamb Blvd12/10/2019 -

-10 Building 22019 290,147 100% $39,983,141 $138

3702 N Las Vegas Blvd12/10/2019 -

-11 4025 E Cheyenne Ave2015 381,804 0% $38,123,738 $1001/8/2020 -

-12 Northern Beltway Indust…2007 234,836 0% $36,200,753 $154

5406 E El Campo Grande…12/10/2019 -

-13 Bldg 12003 266,800 0% $35,201,708 $132

3200 E Gowan Rd9/26/2019 -

-14 3717 Bay Lake Trail2005 266,160 0% $35,117,267 $1329/26/2019 -

-15 Building 32019 254,548 100% $35,077,490 $138

3732 N Las Vegas Blvd12/10/2019 -

-16 Bldg B2017 200,450 0% $31,329,278 $156

8385 Eastgate Rd12/10/2019 -

-17 Building 12019 207,689 100% $28,620,177 $138

3450 N Lamb Blvd12/10/2019 -

-18 National Indoor RV Cent…2018 215,804 0% $28,473,274 $132

4640 Nexus Way9/26/2019 -

-19 Bldg A2008 181,431 0% $27,968,194 $154

5402 E El Campo Grande…12/10/2019 -

-20 Bldg A2016 163,000 0% $25,476,040 $156

8390 Eastgate Rd12/10/2019 -

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Page 15

EconomyLas Vegas Industrial

Las Vegas' recovery came to a standstill with the spreadof the coronavirus but that is ending as businesses beginto reopen. The Las Vegas Strip shuttered all casinos forthe first time in more than 50 years, and in a market sodependent on tourism, it had ripple effects through thelocal economy. Numerous casinos have reopened withnew guidelines, bringing both a portion of leisure andhospitality employees back to work and tourists back tothe metro, but unemployment remained elevated in Julyat around 16.5% according to the Bureau of LaborStatistics.

Prior to the impact of the coronavirus, Las Vegas wassteadily recovering from the recession, bolstered bypositive job and population growth. Annual job growth inthe Las Vegas metro averaged around 3% over the pastfive years, based on numbers from the U.S. Bureau ofLabor Statistics. The Las Vegas metro saw steadygrowth in the number of people moving to the area overthe past decade, and approximately two-thirds of thepopulation growth has come from in-migration fromother states, with a significant portion from southernCalifornia metros.

While state and local officials are working to diversify theeconomy, the leisure and hospitality sector remains LasVegas' primary economic driver. The metro's economicsuccess is inherently tied to tourism, with nearly one inthree jobs based in the sector. The metro attracted morethan 40 million visitors from 2014 to 2019, an all-timerecord, but the decrease in tourism due to thecoronavirus will break that streak. Visitor volume in Maywas down 95% compared to the same month theprevious year according to the Las Vegas Conventionand Visitors Authority. While visitor volume has started torecover with the reopening of many casinos and hotels,visitor volume in July was still down approximately 60%from the same month last year.

With coronavirus dampening travel and large groupgatherings, numerous events were canceled in LasVegas, including all conventions. Hotel occupancy in Julywas down by nearly 50% compared to the previous yearand McCarran International Airport saw passenger trafficdecline by around 65%.

The construction industry's recovery was halted by thecoronavirus after being hit hard by the collapse of thehousing market during the recession. Annualemployment growth in the construction sector over thepast five years averaged around 10%. However, thenumber of workers still remains at only approximately65% of prerecession levels. The metro employed morethan 110,000 construction workers in 2006 and around77,000 workers in March prior to pandemic. The sectorshed about 7,000 jobs, with layoffs not as severe asother sectors with construction allowed to continue.

Construction recently completed on one of the mostsignificant projects in the metro: the new 65,000-seatAllegiant Stadium for the Las Vegas Raiders. TheRaiders and the Las Vegas Stadium Authority partneredto build the stadium, which has held the first practicegames already. While the stadium will go ahead and hostNFL games in 2020, it will be closed to fans due to thepandemic.

The state-backed economic impact report on thestadium is estimating a total economic output of $620million, as well as $35 million new tax dollars each year.Those projections are based on the stadium hosting 46events per year and drawing approximately 450,000 newvisitors. The report also estimates that the stadium wouldcreate an additional around 5,900 permanent jobsthroughout the region.

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EconomyLas Vegas Industrial

LAS VEGAS EMPLOYMENT BY INDUSTRY IN THOUSANDS

NAICS Industry Jobs LQ MarketUS USMarketUSMarket

Current Level 12 Month Change 10 Year Change 5 Year Forecast

0.84%0.96%0.38%2.78%-6.61%-2.09%0.325Manufacturing

1.54%3.60%0.37%0.59%-7.88%-15.29%1.0156Trade, Transportation and Utilities

1.89%4.05%-0.23%-0.23%-9.49%-17.75%1.090 Retail Trade

0.70%1.61%1.19%2.93%-1.30%-1.31%1.054Financial Activities

0.64%1.41%-0.25%0.64%-3.28%-2.99%0.7102Government

1.43%1.36%2.27%5.13%-5.43%3.36%1.573Natural Resources, Mining and Construction

2.30%3.80%1.41%3.29%-5.20%-8.86%0.796Education and Health Services

2.30%5.51%1.64%2.16%-7.39%-19.01%1.0124Professional and Business Services

1.45%4.19%0.22%0.94%-3.52%-12.38%0.610Information

8.71%8.49%-1.80%-2.73%-34.15%-35.21%2.8191Leisure and Hospitality

3.20%5.11%-0.67%0.77%-15.66%-20.21%0.826Other Services

Total Employment 858 1.0 -17.38% -9.17% 0.68% 0.51% 4.51% 2.23%

Source: Oxford Economics

LQ = Location Quotient

Source: Oxford Economics

YEAR OVER YEAR JOB GROWTH

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EconomyLas Vegas Industrial

DEMOGRAPHIC TRENDS

12 Month ChangeCurrent Level

Metro U.S.Metro U.S.Demographic Category

10 Year Change

Metro U.S. Metro U.S.

5 Year Forecast

Population 329,991,4692,302,068 1.5% 0.5% 1.7% 0.6% 1.6% 0.5%

Households 122,505,133834,709 1.5% 0.4% 1.8% 0.7% 1.5% 0.4%

Median Household Income $64,503$56,713 -3.1% 1.3% 0.9% 2.6% 2.9% 2.8%

Labor Force 159,209,6411,051,895 -7.7% -2.7% 0.7% 0.3% 2.6% 1.0%

Unemployment 13.4%24.4% 20.4% 9.8% 1.0% 0.4% - -

Source: Oxford Economics

POPULATION GROWTH

Source: Oxford Economics

LABOR FORCE GROWTH INCOME GROWTH

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SubmarketsLas Vegas Industrial

LAS VEGAS SUBMARKETS

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SubmarketsLas Vegas Industrial

SUBMARKET INVENTORY

12 Month Deliveries Under Construction as % of Inventory

Bldgs SF (000) Percent Rank

Inventory

Bldgs SF (000) Percent RankBldgs SF (000) % Market RankSubmarketNo.

1 Airport/E Las Vegas 15,981 10.9% 4 9 238 1.5% 5521 2 40 0.3% 5

2 Central Las Vegas 13,637 9.3% 5 0 - - -505 0 0 0% -

3 North Las Vegas 45,116 30.8% 1 11 2,312 5.1% 11,119 5 1,153 2.6% 2

4 Northwest Las Vegas 867 0.6% 8 0 - - -39 0 0 0% -

5 Outlying NE Clark Cty 524 0.4% 10 1 12 2.3% 633 0 0 0% -

6 Outlying S Clark Cnty 689 0.5% 9 0 - - -96 0 0 0% -

7 SE LV/Henderson 18,285 12.5% 3 5 1,683 9.2% 2569 7 424 2.3% 4

8 Speedway 8,611 5.9% 7 2 297 3.5% 478 8 2,097 24.3% 1

9 SW Las Vegas 32,341 22.0% 2 5 526 1.6% 31,058 13 587 1.8% 3

10 West Las Vegas 10,640 7.3% 6 0 - - -463 0 0 0% -

SUBMARKET RENT

Growth

Market Rent

Per SFSubmarketNo.

12 Month Market Rent QTD Annualized Market Rent

RankRank GrowthRank

1 Airport/E Las Vegas 3.1%6 4.5% 6$0.89 3

2 Central Las Vegas 3.0%3 3.9% 9$0.94 4

3 North Las Vegas 2.3%9 4.6% 5$0.64 8

4 Northwest Las Vegas 1.8%1 2.9% 10$1.03 10

5 Outlying NE Clark Cty 3.7%4 4.7% 3$0.92 2

6 Outlying S Clark Cnty 4.5%2 5.3% 1$1.01 1

7 SE LV/Henderson 2.5%8 4.3% 8$0.80 7

8 Speedway 2.1%10 4.9% 2$0.58 9

9 SW Las Vegas 2.7%5 4.6% 4$0.89 6

10 West Las Vegas 2.8%7 4.3% 7$0.88 5

SUBMARKET VACANCY & NET ABSORPTION

12 Month Absorption

Rank Construc. Ratio

Vacancy

SF % of InvSF PercentSubmarketNo. Rank

1 Airport/E Las Vegas 772,168 4.8% -(355,747) -2.2% 107

2 Central Las Vegas 277,366 2.0% -(65,272) -0.5% 92

3 North Las Vegas 3,346,398 7.4% 1.1957,627 2.1% 18

4 Northwest Las Vegas 82,343 9.5% -(9,704) -1.1% 89

5 Outlying NE Clark Cty 9,000 1.7% -4,440 0.8% 71

6 Outlying S Clark Cnty 29,500 4.3% -13,225 1.9% 55

7 SE LV/Henderson 754,559 4.1% 1.2363,586 2.0% 34

8 Speedway 2,289,159 26.6% 4.2504,810 5.9% 210

9 SW Las Vegas 1,255,384 3.9% 2.5227,095 0.7% 43

10 West Las Vegas 488,096 4.6% -11,725 0.1% 66

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Supply & Demand TrendsLas Vegas Industrial

OVERALL SUPPLY & DEMAND

Net AbsorptionInventory

% of Inv Construction RatioSF SF Growth % Growth SFYear

2024 4,365,650 2.6% 2.3%3,840,776 1.1170,323,076

2023 5,143,680 3.2% 2.5%4,217,544 1.2165,957,426

2022 5,393,569 3.5% 2.6%4,109,571 1.3160,813,746

2021 5,436,904 3.6% 1.6%2,499,534 2.2155,420,177

2020 6,184,225 4.3% 1.4%2,025,632 3.1149,983,273

YTD 2,893,675 2.0% 0.5%699,545 4.1146,692,723

2019 6,018,976 4.4% 3.2%4,613,536 1.3143,799,048

2018 4,345,439 3.3% 3.9%5,440,492 0.8137,780,072

2017 7,218,605 5.7% 5.5%7,335,192 1.0133,434,633

2016 3,263,025 2.7% 2.4%3,044,674 1.1126,216,028

2015 1,403,020 1.2% 3.2%3,917,606 0.4122,953,003

2014 946,486 0.8% 2.9%3,495,059 0.3121,549,983

2013 543,468 0.5% 2.3%2,762,274 0.2120,603,497

2012 11,424 0% 0.6%674,147 0120,060,029

2011 (34,566) 0% 1.1%1,332,532 -120,048,605

2010 681,768 0.6% 0%28,418 24.0120,083,171

2009 1,320,685 1.1% -3.3%(3,892,755) -119,401,403

2008 7,570,667 6.9% 3.5%4,179,194 1.8118,080,718

SPECIALIZED INDUSTRIAL SUPPLY & DEMAND

Net AbsorptionInventory

% of Inv Construction RatioSF SF Growth % Growth SFYear

2024 622,622 2.8% 2.5%572,998 1.122,783,266

2023 733,581 3.4% 2.9%650,959 1.122,160,644

2022 769,207 3.7% 3.4%720,291 1.121,427,063

2021 1,272,143 6.6% 4.6%949,415 1.320,657,856

2020 1,441,540 8.0% 1.7%321,098 4.519,385,713

YTD 507,310 2.8% 1.1%211,056 2.418,451,483

2019 148,707 0.8% 1.3%224,596 0.717,944,173

2018 140,692 0.8% 2.3%403,400 0.317,795,466

2017 0 0% 2.9%505,843 017,654,774

2016 3,000 0% 0.8%137,768 017,654,774

2015 188,000 1.1% -1.4%(239,321) -17,651,774

2014 0 0% 1.2%204,224 017,463,774

2013 431,592 2.5% 3.6%625,679 0.717,463,774

2012 (26,125) -0.2% -1.6%(280,223) -17,032,182

2011 8,874 0.1% 0.9%154,637 0.117,058,307

2010 56,947 0.3% -0.7%(114,122) -17,049,433

2009 177,727 1.1% -0.1%(22,759) -16,992,486

2008 477,368 2.9% 2.1%347,263 1.416,814,759

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Supply & Demand TrendsLas Vegas Industrial

LOGISTICS SUPPLY & DEMAND

Net AbsorptionInventory

% of Inv Construction RatioSF SF Growth % Growth SFYear

2024 3,680,942 3.0% 2.7%3,338,771 1.1125,015,216

2023 4,336,952 3.7% 3.0%3,634,036 1.2121,334,274

2022 4,547,645 4.0% 2.9%3,439,889 1.3116,997,322

2021 4,097,013 3.8% 1.5%1,712,658 2.4112,449,677

2020 4,677,685 4.5% 1.8%1,903,848 2.5108,352,664

YTD 2,321,365 2.2% 0.7%754,512 3.1105,996,344

2019 5,714,469 5.8% 4.1%4,278,210 1.3103,674,979

2018 4,204,747 4.5% 4.7%4,586,027 0.997,960,510

2017 6,931,205 8.0% 6.9%6,467,656 1.193,755,763

2016 3,260,025 3.9% 3.1%2,691,929 1.286,824,558

2015 1,215,020 1.5% 4.2%3,548,544 0.383,564,533

2014 946,486 1.2% 3.5%2,894,241 0.382,349,513

2013 (17,246) 0% 2.3%1,883,492 -81,403,027

2012 37,549 0% 0.7%556,255 0.181,420,273

2011 18,794 0% 1.4%1,172,463 081,382,724

2010 676,862 0.8% 0.6%460,384 1.581,363,930

2009 1,136,497 1.4% -4.1%(3,336,663) -80,687,068

2008 4,257,743 5.7% 2.6%2,028,765 2.179,550,571

FLEX SUPPLY & DEMAND

Net AbsorptionInventory

% of Inv Construction RatioSF SF Growth % Growth SFYear

2024 62,086 0.3% -0.3%(70,993) -22,524,594

2023 73,147 0.3% -0.3%(67,451) -22,462,508

2022 76,717 0.3% -0.2%(50,609) -22,389,361

2021 67,748 0.3% -0.7%(162,539) -22,312,644

2020 65,000 0.3% -0.9%(199,314) -22,244,896

YTD 65,000 0.3% -1.2%(266,023) -22,244,896

2019 155,800 0.7% 0.5%110,730 1.422,179,896

2018 0 0% 2.0%451,065 022,024,096

2017 287,400 1.3% 1.6%361,693 0.822,024,096

2016 0 0% 1.0%214,977 021,736,696

2015 0 0% 2.8%608,383 021,736,696

2014 0 0% 1.8%396,594 021,736,696

2013 129,122 0.6% 1.2%253,103 0.521,736,696

2012 0 0% 1.8%398,115 021,607,574

2011 (62,234) -0.3% 0%5,432 -21,607,574

2010 (52,041) -0.2% -1.5%(317,844) -21,669,808

2009 6,461 0% -2.5%(533,333) -21,721,849

2008 2,835,556 15.0% 8.3%1,803,166 1.621,715,388

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Rent & VacancyLas Vegas Industrial

OVERALL RENT & VACANCY

Market Rent

Per SF Index % Growth Vs Hist PeakYear

Vacancy

SF Percent Ppts Chg

2024 118 0.4% 10.3%$0.85 16,362,419 9.6% 0.1%

2023 118 2.7% 9.8%$0.84 15,844,442 9.5% 0.3%

2022 115 9.0% 6.9%$0.82 14,925,086 9.3% 0.5%

2021 105 -0.3% -1.8%$0.75 13,647,748 8.8% 1.6%

2020 106 -1.4% -1.6%$0.76 10,713,350 7.1% 2.2%

YTD 110 2.6% 2.5%$0.79 9,303,973 6.3% 1.4%

2019 107 8.4% -0.1%$0.77 7,109,843 4.9% 0.7%

2018 99 6.9% -7.9%$0.71 5,789,344 4.2% -1.2%

2017 92 6.3% -13.8%$0.66 7,218,101 5.4% -0.6%

2016 87 7.6% -19.0%$0.62 7,624,835 6.0% 0%

2015 81 7.5% -24.7%$0.58 7,406,484 6.0% -2.1%

2014 75 5.0% -29.9%$0.54 9,921,070 8.2% -2.2%

2013 72 1.1% -33.3%$0.51 12,469,643 10.3% -1.9%

2012 71 -3.5% -34.0%$0.51 14,688,449 12.2% -0.6%

2011 73 -5.7% -31.6%$0.52 15,351,172 12.8% -1.1%

2010 78 -10.5% -27.5%$0.56 16,718,270 13.9% 0.5%

2009 87 -13.0% -19.0%$0.62 16,064,920 13.5% 4.3%

2008 100 -6.8% -6.8%$0.72 10,851,480 9.2% 2.4%

SPECIALIZED INDUSTRIAL RENT & VACANCY

Market Rent

Per SF Index % Growth Vs Hist PeakYear

Vacancy

SF Percent Ppts Chg

2024 106 0.5% -3.3%$0.92 1,881,401 8.3% 0%

2023 105 2.8% -3.8%$0.92 1,832,419 8.3% 0.1%

2022 102 9.0% -6.4%$0.89 1,750,430 8.2% -0.1%

2021 94 -0.3% -14.2%$0.82 1,702,094 8.2% 1.1%

2020 94 -3.6% -13.9%$0.82 1,379,803 7.1% 5.7%

YTD 98 0.6% -10.2%$0.85 555,615 3.0% 1.6%

2019 98 6.6% -10.7%$0.85 259,361 1.4% -0.5%

2018 91 4.2% -16.3%$0.80 339,750 1.9% -1.5%

2017 88 4.4% -19.6%$0.77 602,458 3.4% -2.9%

2016 84 7.0% -23.0%$0.73 1,108,301 6.3% -0.8%

2015 79 8.0% -28.1%$0.68 1,243,069 7.0% 2.4%

2014 73 3.9% -33.4%$0.63 815,748 4.7% -1.2%

2013 70 2.1% -35.9%$0.61 1,019,972 5.8% -1.3%

2012 69 -2.2% -37.2%$0.60 1,214,059 7.1% 1.5%

2011 70 -7.2% -35.8%$0.61 959,961 5.6% -0.9%

2010 76 -11.5% -30.7%$0.66 1,105,724 6.5% 1.0%

2009 86 -14.5% -21.7%$0.75 934,655 5.5% 1.1%

2008 100 -8.5% -8.5%$0.87 734,169 4.4% 0.7%

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Rent & VacancyLas Vegas Industrial

LOGISTICS RENT & VACANCY

Market Rent

Per SF Index % Growth Vs Hist PeakYear

Vacancy

SF Percent Ppts Chg

2024 123 0.4% 11.0%$0.78 12,660,052 10.1% 0%

2023 123 2.6% 10.6%$0.78 12,322,916 10.2% 0.2%

2022 120 8.9% 7.8%$0.76 11,624,973 9.9% 0.6%

2021 110 -0.3% -1.0%$0.70 10,522,189 9.4% 1.8%

2020 110 -0.6% -0.6%$0.70 8,139,780 7.5% 1.7%

YTD 115 3.4% 3.4%$0.73 7,546,682 7.1% 1.4%

2019 111 8.9% 0%$0.70 5,979,829 5.8% 1.0%

2018 102 7.8% -8.2%$0.65 4,624,011 4.7% -1.0%

2017 95 7.2% -14.8%$0.60 5,338,995 5.7% -0.3%

2016 88 8.5% -20.6%$0.56 5,165,593 5.9% 0.4%

2015 81 8.3% -26.8%$0.52 4,597,497 5.5% -2.9%

2014 75 6.3% -32.4%$0.48 6,931,021 8.4% -2.5%

2013 71 0.6% -36.4%$0.45 8,878,776 10.9% -2.3%

2012 70 -4.0% -36.8%$0.45 10,779,514 13.2% -0.6%

2011 73 -5.2% -34.2%$0.46 11,298,220 13.9% -1.4%

2010 77 -10.9% -30.6%$0.49 12,451,889 15.3% 0.1%

2009 86 -13.6% -22.1%$0.55 12,235,411 15.2% 5.4%

2008 100 -7.3% -9.9%$0.63 7,762,251 9.8% 2.4%

FLEX RENT & VACANCY

Market Rent

Per SF Index % Growth Vs Hist PeakYear

Vacancy

SF Percent Ppts Chg

2024 113 0.6% 8.9%$1.10 1,820,966 8.1% 0.6%

2023 112 2.9% 8.2%$1.09 1,689,107 7.5% 0.6%

2022 109 9.2% 5.1%$1.06 1,549,683 6.9% 0.5%

2021 100 -0.1% -3.8%$0.97 1,423,465 6.4% 1.0%

2020 100 -2.5% -3.7%$0.97 1,193,767 5.4% 1.4%

YTD 104 1.5% 0.2%$1.01 1,201,676 5.4% 1.5%

2019 103 8.0% -1.2%$1.00 870,653 3.9% 0.2%

2018 95 5.9% -8.6%$0.92 825,583 3.7% -2.0%

2017 90 4.9% -13.7%$0.87 1,276,648 5.8% -0.4%

2016 86 5.3% -17.7%$0.83 1,350,941 6.2% -1.0%

2015 81 4.6% -21.9%$0.79 1,565,918 7.2% -2.8%

2014 78 2.1% -25.3%$0.75 2,174,301 10.0% -1.8%

2013 76 1.8% -26.9%$0.74 2,570,895 11.8% -0.6%

2012 75 -3.0% -28.2%$0.72 2,694,876 12.5% -1.8%

2011 77 -6.2% -25.9%$0.75 3,092,991 14.3% -0.3%

2010 82 -8.7% -21.1%$0.80 3,160,657 14.6% 1.3%

2009 90 -10.1% -13.5%$0.87 2,894,854 13.3% 2.5%

2008 100 -3.8% -3.8%$0.97 2,355,060 10.8% 3.8%

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Page 24

Sale TrendsLas Vegas Industrial

OVERALL SALES

Completed Transactions (1)

Turnover Avg Price/SFDeals VolumeYear

Market Pricing Trends (2)

Avg Price Price IndexAvg Cap Rate Price/SF Cap Rate

2024 -- - -- 180- $147.80 5.1%

2023 -- - -- 179- $146.70 5.1%

2022 -- - -- 170- $139.55 5.2%

2021 -- - -- 141- $115.32 5.7%

2020 -- - -- 145- $119.15 5.9%

YTD $565.5M152 3.5% $123.86$6,134,295 1606.2% $131.66 5.5%

2019 $1.9B364 10.6% $133.44$7,256,745 1536.9% $125.68 5.6%

2018 $1.1B354 7.6% $117.25$4,267,417 1416.6% $115.60 5.7%

2017 $712.8M345 9.8% $100.95$3,223,031 1267.1% $103.22 5.8%

2016 $547.3M308 5.3% $93.21$2,603,882 1156.6% $94.25 6.0%

2015 $339.9M296 7.1% $87.87$2,026,568 1017.0% $82.82 6.3%

2014 $440.3M280 4.6% $87.09$1,934,507 877.0% $71.37 6.8%

2013 $332.3M255 6.4% $59.34$1,749,897 797.6% $64.82 7.1%

2012 $214.1M242 3.4% $62.68$1,194,209 788.8% $64.33 7.1%

2011 $275.7M244 8.5% $65.92$1,877,007 799.5% $64.49 7.1%

2010 $123.9M139 2.3% $73.42$1,110,020 799.3% $65.21 7.2%

2009 $105.4M68 1.0% $92.87$1,829,346 838.4% $68.12 7.2%

(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.

(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

SPECIALIZED INDUSTRIAL SALES

Completed Transactions (1)

Turnover Avg Price/SFDeals VolumeYear

Market Pricing Trends (2)

Avg Price Price IndexAvg Cap Rate Price/SF Cap Rate

2024 -- - -- 176- $157.62 5.1%

2023 -- - -- 175- $156.26 5.1%

2022 -- - -- 166- $148.44 5.2%

2021 -- - -- 137- $122.52 5.7%

2020 -- - -- 142- $126.55 5.9%

YTD $61.1M17 2.9% $123.88$4,388,290 157- $140.08 5.5%

2019 $84.1M27 3.6% $160.33$5,235,982 150- $134.57 5.6%

2018 $80.2M40 4.2% $122.51$3,270,965 1397.2% $124.55 5.6%

2017 $49.7M40 3.9% $100.07$2,450,848 123- $110.40 5.8%

2016 $30.7M37 2.2% $100.29$1,334,675 1147.8% $101.56 5.9%

2015 $94M34 6.6% $85.12$4,192,416 1016.7% $89.92 6.3%

2014 $42M26 2.2% $121.76$2,098,538 87- $78.17 6.7%

2013 $25.1M29 5.3% $51.73$1,471,997 798.5% $70.64 7.0%

2012 $38.2M16 3.1% $110.91$4,222,749 79- $70.31 7.0%

2011 $16.2M18 1.2% $82.40$1,015,438 78- $69.74 7.1%

2010 $11.9M10 4.1% $62.26$1,702,324 79- $70.75 7.2%

2009 $30.4M12 2.3% $78.18$3,198,794 837.6% $74.01 7.1%

(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.

(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

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Sale TrendsLas Vegas Industrial

LOGISTICS SALES

Completed Transactions (1)

Turnover Avg Price/SFDeals VolumeYear

Market Pricing Trends (2)

Avg Price Price IndexAvg Cap Rate Price/SF Cap Rate

2024 -- - -- 185- $143.31 5.1%

2023 -- - -- 183- $142.32 5.1%

2022 -- - -- 175- $135.47 5.1%

2021 -- - -- 144- $111.93 5.6%

2020 -- - -- 149- $115.63 5.9%

YTD $481.3M110 4.0% $123.75$7,037,401 1656.2% $127.81 5.5%

2019 $1.7B255 12.8% $131.39$8,585,753 1576.6% $121.59 5.5%

2018 $803.4M247 8.4% $111.35$4,633,573 1446.6% $111.59 5.6%

2017 $567.6M219 6.8% $100.12$3,836,133 1287.1% $99.49 5.8%

2016 $440M213 6.1% $92.08$2,944,318 1176.4% $90.72 5.9%

2015 $204.1M189 7.5% $90.82$1,802,809 1027.0% $79.46 6.3%

2014 $310M184 4.7% $86.67$2,039,915 887.0% $67.93 6.8%

2013 $273.6M177 7.5% $59.23$1,923,956 795.9% $61.62 7.1%

2012 $116.3M141 2.8% $55.21$1,029,881 797.9% $61.15 7.1%

2011 $231.9M161 5.3% $65.28$2,296,577 799.5% $61.32 7.1%

2010 $96M96 2.2% $73.07$1,168,919 809.3% $61.73 7.2%

2009 $51.6M42 0.6% $100.27$1,397,164 839.6% $64.42 7.2%

(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.

(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

FLEX SALES

Completed Transactions (1)

Turnover Avg Price/SFDeals VolumeYear

Market Pricing Trends (2)

Avg Price Price IndexAvg Cap Rate Price/SF Cap Rate

2024 -- - -- 165- $161.19 5.4%

2023 -- - -- 164- $159.77 5.4%

2022 -- - -- 155- $151.75 5.4%

2021 -- - -- 129- $125.67 6.0%

2020 -- - -- 133- $129.96 6.2%

YTD $23.1M25 1.5% $125.99$2,178,694 147- $143.15 5.8%

2019 $173.1M82 6.0% $143.35$3,130,126 1417.4% $137.97 5.8%

2018 $180M67 6.9% $149.79$3,508,638 1306.4% $127.45 5.9%

2017 $95.5M86 27.8% $106.63$1,741,647 1187.0% $115.25 6.0%

2016 $76.6M58 4.6% $97.37$2,024,405 108- $105.21 6.2%

2015 $41.8M73 6.0% $80.94$1,289,224 957.9% $93.10 6.5%

2014 $88.4M70 6.3% $77.88$1,587,382 847.0% $82.30 6.9%

2013 $33.6M49 3.0% $67.75$1,095,102 779.7% $75.49 7.2%

2012 $59.6M85 5.8% $61.79$1,027,376 779.5% $74.75 7.2%

2011 $27.6M65 26.4% $63.67$885,854 77- $75.50 7.2%

2010 $16M33 1.2% $87.69$696,623 79- $77.47 7.2%

2009 $23.4M14 1.1% $101.05$2,152,700 837.9% $81.15 7.2%

(1) Completed transaction data is based on actual arms-length sales transactions and levels are dependent on the mix of what happened to sell in the period.

(2) Market price trends data is based on the estimated price movement of all properties in the market, informed by actual transactions that have occurred.

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Page 26

Las Vegas - NV

PREPARED BY

Luke Adamo

Broker

Industrial Capital Markets Report

INDUSTRIAL CAPITAL MARKETS REPORT - MARKET

Capital Markets Overview 2

Market Pricing 7

Buying & Selling By Owner Type 9

Investment Trends By Buyer & Seller Origin 10

Submarket Sales Trends 11

Recent Significant Sales 12

Players 16

Las Vegas Industrial

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Capital Markets OverviewLas Vegas Industrial

$20.1B $1.8B 5.5% 6.7%Asset Value 12 Mo Sales Volume Market Cap Rate 12 Mo Mkt Sale Price/SF Chg

12 MO SALES PRICE Average Lowest Highest Market

Cap Rate 6.4% 4.3% 8.7% 5.5%

Sale Price/SF $134 $20 $1.1K $132

Sale Price $8.8M $215K $110M -

Sale vs Asking Price -6.4% -41.7% 4.5% -

% Leased at Sale 92.7% 0% 100% -

12 MO SALES VOLUME Total Lowest Highest

Transactions 279 - -

Sales Volume $1.8B $215K $110M

Properties Sold 243 - -

Transacted SF 13.8M 1.7K 855K

Average SF 49.4K 1.7K 855K

KEY PERFORMANCE INDICATORS

SUMMARY

Investment has slowed in the third quarter following solidsales in the first half of the year, which was bolstered bya significant trade. Transactions in 2019 surpassed $1billion for the second year in a row and made it a banneryear for sales over the past decade. Sales volumetotaled just over $1 billion in 2018, up from around $715million in 2017 and significantly higher than the metro'shistorical average of about $520 million. Investors appearto be more cautious in the current economic environmentand sales are unlikely to reach the peak levels of the

past couple of years.

One of the notable transactions of 2020 was the Maysale of an Amazon distribution building by developerVanTrust Real Estate for $110 million ($129/SF).Preylock Holdings acquired the 855,000-SF building inthe Tropical Distribution Center, built in 2019, and 100%leased to Amazon.

More recently in July, the Moulton Company acquired a

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Page 2

Capital Markets OverviewLas Vegas Industrial

322,560-SF distribution building in North Las Vegas for$45.2 million ($140/SF). The property was built in 2020and was sold by developer VanTrust Real Estate 100%leased to a single tenant.

Logistics continues to see the highest share of dealvolume in 2020, after making up approximately 75% ofthe total sales volume in the metro in 2018 and 2019.Along with sales volume, Las Vegas' average price per

SF is rising, now approximately 20% higher than thenation's. Cap rates have compressed by around 150basis points over the past decade to around 5.5%.

Developers have been some of the top sellers in themarket recently as they sell newly completed properties,many to REITs, private equity, and institutional investors,which have been some of the top buyers over the pastfew years.

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Page 3

Capital Markets OverviewLas Vegas Industrial

MARKET SALE PRICE & TRANSACTION SALE PRICE PER SF

MARKET CAP RATE & TRANSACTION CAP RATE

SALES VOLUME BY TRANSACTION TYPE

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Capital Markets OverviewLas Vegas Industrial

CAP RATE DISTRIBUTION PAST 12 MONTHSSALE PRICE PER SF DISTRIBUTION PAST 12 MONTHS

CAP RATE BY TRANSACTION TYPESALE PRICE PER SF BY TRANSACTION TYPE

SOLD SF AS % OF TOTAL SFCUMULATIVE SALES VOLUME BY YEAR

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Capital Markets OverviewLas Vegas Industrial

ASSET VALUE BY OWNER TYPESALES VOLUME BY BUYER TYPE PAST 12 MONTHS

OCCUPANCY AT SALESALE TO ASKING PRICE DIFFERENTIAL

PROBABILITY OF SELLING IN MONTHSMONTHS TO SALE

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Page 6

Market PricingLas Vegas Industrial

MARKET CAP RATE BY LOCATION TYPEMARKET SALE PRICE PER SF BY LOCATION TYPE

MARKET CAP RATE BY STAR RATINGMARKET SALE PRICE PER SF BY STAR RATING

MARKET CAP RATE DISTRIBUTIONMARKET SALE PRICE PER SF DISTRIBUTION

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Market PricingLas Vegas Industrial

4-5 STAR MARKET CAP RATE DISTRIBUTION4-5 STAR MARKET SALE PRICE PER SF DISTRIBUTION

3 STAR MARKET CAP RATE DISTRIBUTION3 STAR MARKET SALE PRICE PER SF DISTRIBUTION

1-2 STAR MARKET CAP RATE DISTRIBUTION1-2 STAR MARKET SALE PRICE PER SF DISTRIBUTION

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Buying & Selling By Owner TypeLas Vegas Industrial

SALES VOLUME BY BUYER TYPE

SALES VOLUME BY SELLER TYPE

NET BUYING & SELLING BY OWNER TYPE

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Page 9

Investment Trends By Buyer & Seller OriginLas Vegas Industrial

ASSET VALUE BY OWNER ORIGINSALES VOLUME BY BUYER ORIGIN PAST 12 MONTHS

SALES VOLUME BY OWNER ORIGIN

Year Sales Volume Bought Sold Net Trans Bought Sold Net Trans Bought Sold Net Trans

Total Local National Foreign

YTD $565.5M $38.1M $114.8M ($76.6M) $497.2M $368.6M $128.6M $2.7M $72M ($69.3M)

2019 $1.9B $193.3M $298.4M ($105.1M) $1.7B $1B $659M $42.6M $601M ($558.4M)

2018 $1.1B $262.3M $242.9M $19.4M $542.4M $775.8M ($233.4M) $205.8M $9.5M $196.3M

2017 $712.8M $137.2M $153.2M ($15.9M) $348M $504.8M ($156.7M) $174.6M $5.6M $168.9M

2016 $547.3M $132.3M $130.8M $1.5M $384.7M $402.8M ($18.1M) $796.7K $597K $199.7K

2015 $339.9M $107.9M $109.1M ($1.2M) $210.1M $173.9M $36.1M $2M $47.4M ($45.4M)

2014 $440.3M $121M $179.2M ($58.2M) $286.7M $235.5M $51.2M $8.8M $8.7M $156.7K

2013 $332.3M $60.8M $70.9M ($10.1M) $215.8M $227.8M ($11.9M) $1.2M $5.3M ($4.2M)

2012 $214.1M $94.1M $62.5M $31.6M $79.9M $128.8M ($48.9M) $2.7M $3.2M ($545.3K)

2011 $275.7M $51.3M $53M ($1.7M) $202.4M $207.6M ($5.2M) $1.6M $3.7M ($2M)

2010 $123.9M $47.1M $40.6M $6.5M $65.7M $75.9M ($10.2M) $98.3K $2.3M ($2.2M)

CAP RATE BY BUYER ORIGINSALE PRICE PER SF BY BUYER ORIGIN

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Page 10

Submarket Sales TrendsLas Vegas Industrial

SUBMARKET SALES TRANSACTIONS PAST 12 MONTHS

Submarket Name Sales Volume Transactions Transacted SF Avg SF Mkt Cap Rate Mkt Sale Price/SF

North Las Vegas $897,848,837 85 7,171,399 84,369 5.5% $118

Speedway $267,386,227 6 2,025,868 337,645 5.3% $121

Airport/E Las Vegas $235,058,028 36 1,497,238 41,590 5.7% $141

SE LV/Henderson $173,117,803 45 1,374,642 30,548 5.4% $135

SW Las Vegas $116,436,663 68 1,156,400 17,006 5.6% $150

West Las Vegas $40,933,871 15 357,098 23,807 5.8% $135

Central Las Vegas $16,211,647 16 162,579 10,161 5.7% $122

Outlying S Clark Cnty $2,396,500 5 16,790 3,358 5.7% $138

Outlying NE Clark Cty $700,000 3 27,174 9,058 5.6% $152

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Page 11

Recent Significant SalesLas Vegas Industrial

6001 E Tropical Pky • Amazon

Tropical Distribution Center • Speedway Submarket • North Las Vegas, NV 89115

Buyer Preylock Holdings, LLC (USA)

Broker JLL

Seller VanTrust Real Estate LLC (USA)

Broker CBRE

Sale Type Investment

Sale Date May 2020

Sale Price $110M ($129/SF)

Leased 100%

Hold Period 16 Months

RBA 855,000 SF

Year Built 2019

5430 Donovan Way • Bldg. 9

Northgate Distribution Center • North Las Vegas Submarket • North Las Vegas, NV 89081

Buyer Blackstone Real Estate In… (USA)

Seller Global Logistic Properties… (USA)

Broker Eastdil Secured, LLC

Sale Type Investment

Sale Cond Bulk/Portfolio Sale, Entity Buy/Member…

Sale Date Sep 2019

Sale Price $90.2M ($123/SF)

Leased 43%

Hold Period 15 Months

RBA 731,561 SF

Year Built 2018

4490 Nexus Way • Northgate Distribution Center Bldg 2

Northgate Distribution Center • North Las Vegas Submarket • Las Vegas, NV 89115

Buyer The Blackstone Group L.P. (USA)

Seller Global Logistic Properties… (USA)

Broker Eastdil Secured, LLC

Sale Type Investment

Sale Cond Bulk/Portfolio Sale, Entity Buy/Member…

Sale Date Sep 2019

Sale Price $73.7M ($132/SF)

Leased 100%

Hold Period 17 Months

RBA 558,286 SF

Year Built 2017

5550 Donovan Way • The Honest Co

Northgate Distribution Center • North Las Vegas Submarket • Las Vegas, NV 89101

Buyer Blackstone Real Estate In… (USA)

Seller Global Logistic Properties… (USA)

Broker Eastdil Secured, LLC

Sale Type Investment

Sale Cond Bulk/Portfolio Sale, Entity Buy/Member…

Sale Date Sep 2019

Sale Price $70.4M ($123/SF)

Leased 100%

Hold Period 21 Months

RBA 570,810 SF

Year Built 2017

3837 Bay Lake Trail • Bldg 16

Prologis Park North • North Las Vegas Submarket • North Las Vegas, NV 89030

Buyer The Blackstone Group L.P. (USA)

Seller Global Logistic Properties… (USA)

Broker Eastdil Secured, LLC

Sale Type Investment

Sale Cond Bulk/Portfolio Sale, Entity Buy/Member…

Sale Date Sep 2019

Sale Price $67.7M ($132/SF)

Leased 100%

Hold Period 55 Months

RBA 513,240 SF

Year Built 2007

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Page 12

Recent Significant SalesLas Vegas Industrial

5605 N Hollywood Blvd

Raceway Industrial Park • Speedway Submarket • Las Vegas, NV 89115

Buyer Black Creek Group (USA)

Seller Hines (USA)

Broker Colliers International

Sale Type Investment

Sale Cond Building in Shell Condition

Sale Date Jan 2020

Sale Price $62.4M ($93/SF)

Cap Rate 5.3% (Pro Forma)

Leased 0%

Hold Period 12 Months

RBA 670,798 SF

Year Built 2019

7000 Placid St

Airport/E Las Vegas Submarket • Las Vegas, NV 89119

Buyer The Blackstone Group L.P. (USA)

Seller Global Logistic Properties… (USA)

Broker Eastdil Secured, LLC

Sale Type Investment

Sale Cond Bulk/Portfolio Sale, Entity Buy/Member…

Sale Date Sep 2019

Sale Price $54M ($175/SF)

Leased 100%

Hold Period 47 Months

RBA 309,208 SF

Year Built 1994

4800 E Tropical Pky

North Las Vegas Submarket • Las Vegas, NV 89115

Buyer The Moulton Company (USA)

Seller VanTrust Real Estate LLC (USA)

Sale Type Investment

Sale Date Jul 2020

Sale Price $45.2M ($140/SF)

Leased 100%

Hold Period 3 Months

RBA 322,560 SF

Year Built 2020

2695 N Lamb Blvd • SunPoint Business Center

Sunpoint Business Center • North Las Vegas Submarket • Las Vegas, NV 89115

Buyer The Blackstone Group L.P. (USA)

Seller Colony Capital, Inc. (USA)

Broker CBRE

Sale Type Investment

Sale Cond Bulk/Portfolio Sale

Sale Date Dec 2019

Sale Price $42.9M ($138/SF)

Leased 100%

Hold Period 30 Months

RBA 311,501 SF

Year Built 2016

3702 N Las Vegas Blvd • Building 2

Sunpoint Crossing • North Las Vegas Submarket • Las Vegas, NV 89115

Buyer The Blackstone Group L.P. (USA)

Seller Colony Capital, Inc. (USA)

Broker CBRE

Sale Type Investment

Sale Cond Bulk/Portfolio Sale

Sale Date Dec 2019

Sale Price $40M ($138/SF)

Leased 0%

Hold Period 11 Months

RBA 290,147 SF

Year Built 2019

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Page 13

Recent Significant SalesLas Vegas Industrial

4025 E Cheyenne Ave

Cheyenne Distribution Center • North Las Vegas Submarket • Las Vegas, NV 89115

Buyer Prologis, Inc. (USA)

Seller Black Creek Group (USA) +1

Broker Eastdil Secured, LLC

Sale Type Investment

Sale Cond Bulk/Portfolio Sale, Entity Buy/Member…

Sale Date Jan 2020

Sale Price $38.1M ($100/SF)

Leased 100%

Hold Period 44 Months

RBA 381,804 SF

Year Built 2015

5406 E El Campo Grande Ave • Northern Beltway Indus…

Northern Beltway Industrial Center • Speedway Submarket • Las Vegas, NV 89115

Buyer The Blackstone Group L.P. (USA)

Seller Colony Capital, Inc. (USA)

Broker CBRE

Sale Type Investment

Sale Cond Bulk/Portfolio Sale

Sale Date Dec 2019

Sale Price $36.2M ($154/SF)

Leased 100%

Hold Period 11 Months

RBA 234,836 SF

Year Built 2007

3200 E Gowan Rd • Bldg 1

Prologis Park North • North Las Vegas Submarket • North Las Vegas, NV 89030

Buyer The Blackstone Group L.P. (USA)

Seller Global Logistic Properties… (USA)

Broker Eastdil Secured, LLC

Sale Type Investment

Sale Cond Bulk/Portfolio Sale, Entity Buy/Member…

Sale Date Sep 2019

Sale Price $35.2M ($132/SF)

Leased 100%

Hold Period 55 Months

RBA 266,800 SF

Year Built 2003

3717 Bay Lake Trail

North Las Vegas Submarket • North Las Vegas, NV 89030

Buyer The Blackstone Group L.P. (USA)

Seller Global Logistic Properties… (USA)

Broker Eastdil Secured, LLC

Sale Type Investment

Sale Cond Bulk/Portfolio Sale, Entity Buy/Member…

Sale Date Sep 2019

Sale Price $35.1M ($132/SF)

Leased 100%

Hold Period 55 Months

RBA 266,160 SF

Year Built 2005

3732 N Las Vegas Blvd • Building 3

Sunpoint Crossing • North Las Vegas Submarket • Las Vegas, NV 89115

Buyer The Blackstone Group L.P. (USA)

Seller Colony Capital, Inc. (USA)

Broker CBRE

Sale Type Investment

Sale Cond Bulk/Portfolio Sale

Sale Date Dec 2019

Sale Price $35.1M ($138/SF)

Leased 81%

Hold Period 11 Months

RBA 254,548 SF

Year Built 2019

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Recent Significant SalesLas Vegas Industrial

8385 Eastgate Rd • Bldg B

Henderson Freeways Crossing • SE LV/Henderson Submarket • Henderson, NV 89015

Buyer The Blackstone Group L.P. (USA)

Seller Colony Capital, Inc. (USA)

Broker CBRE

Sale Type Investment

Sale Cond Bulk/Portfolio Sale

Sale Date Dec 2019

Sale Price $31.3M ($156/SF)

Leased 100%

Hold Period 20 Months

RBA 200,450 SF

Year Built 2017

3450 N Lamb Blvd • Building 1

Sunpoint Crossing • North Las Vegas Submarket • Las Vegas, NV 89115

Buyer The Blackstone Group L.P. (USA)

Seller Colony Capital, Inc. (USA)

Broker CBRE

Sale Type Investment

Sale Cond Bulk/Portfolio Sale

Sale Date Dec 2019

Sale Price $28.6M ($138/SF)

Leased 29%

Hold Period 11 Months

RBA 207,689 SF

Year Built 2019

4640 Nexus Way • National Indoor RV Centers Bldg # 4

Northgate Distribution Center • North Las Vegas Submarket • North Las Vegas, NV 89081

Buyer The Blackstone Group L.P. (USA)

Seller Global Logistic Properties… (USA)

Broker Eastdil Secured, LLC

Sale Type Investment

Sale Cond Bulk/Portfolio Sale, Entity Buy/Member…

Sale Date Sep 2019

Sale Price $28.5M ($132/SF)

Leased 100%

Hold Period 9 Months

RBA 215,804 SF

Year Built 2018

5402 E El Campo Grande Ave • Bldg A

Northern Beltway Industrial Center • Speedway Submarket • Las Vegas, NV 89115

Buyer The Blackstone Group L.P. (USA)

Seller Colony Capital, Inc. (USA)

Broker CBRE

Sale Type Investment

Sale Cond Bulk/Portfolio Sale

Sale Date Dec 2019

Sale Price $28M ($154/SF)

Leased 100%

Hold Period 11 Months

RBA 181,431 SF

Year Built 2008

8390 Eastgate Rd • Bldg A

Henderson Freeways Crossing • SE LV/Henderson Submarket • Henderson, NV 89015

Buyer The Blackstone Group L.P. (USA)

Seller Colony Capital, Inc. (USA)

Broker CBRE

Sale Type Investment

Sale Cond Bulk/Portfolio Sale

Sale Date Dec 2019

Sale Price $25.5M ($156/SF)

Leased 100%

Hold Period 20 Months

RBA 163,000 SF

Year Built 2016

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Page 15

PlayersLas Vegas Industrial

TOP OWNERS

Company Name Owned SF Owned Props Avg SF 12 Mo Bought 12 Mo Sold 12 Mo Net Trans

Prologis, Inc. 11,149,823 67 166,415 $58,178,544 $22,100,000 $36,078,544

The Blackstone Group L.P. 9,932,935 40 248,323 $932,640,044 - $932,640,044

Harsch Investment Properties 9,708,512 197 49,282 - - -

Clark County 4,885,914 39 125,280 - - -

BKM Capital Partners 1,856,161 38 48,846 - $15,199,999 ($15,199,999)

Majestic Realty Co. 1,852,277 9 205,809 - - -

Norwegian Government Pension Fun… 1,675,815 23 72,862 - $22,100,000 ($22,100,000)

Black Creek Group 1,609,300 6 268,217 $62,384,214 $38,123,738 $24,260,476

Fireside Investments 1,600,000 1 1,600,000 - - -

Clarion Partners 1,587,633 8 198,454 $12,100,000 - $12,100,000

City Of Las Vegas 1,367,095 6 227,849 - - -

Modern Logistics Properties 1,138,391 3 379,464 - - -

The TJX Companies, Inc. 1,113,000 2 556,500 - - -

MCA Realty, Inc. 901,483 41 21,987 $3,064,000 $7,850,000 ($4,786,000)

EJM Development Co. 873,953 9 97,106 - - -

Preylock Holdings, LLC 855,000 1 855,000 $110,000,000 - $110,000,000

Harvest Properties 813,120 1 813,120 - - -

Red Rock Resorts, Inc 805,860 51 15,801 - - -

Skadden, Arps, Slate, Meagher & Flo… 779,400 2 389,700 - - -

EastGroup Properties, Inc. 754,368 7 107,767 $25,473,110 - $25,473,110

York Nevada Management South LLC 747,515 20 37,376 - - -

Operating Engineers Local Union No. 3 729,318 3 243,106 - - -

Titanium Metals Corporation 722,688 2 361,344 - - -

VanTrust Real Estate LLC 715,460 1 715,460 - $155,226,000 ($155,226,000)

County of Clark Aviation 693,603 6 115,601 - - -

Bixby Land Company 670,883 4 167,721 - - -

Invesco Ltd. 648,596 4 162,149 - - -

Levi Strauss & Co. 638,365 1 638,365 - - -

Dermody Properties, Inc. 636,123 4 159,031 $35,450,000 - $35,450,000

CapRock Partners 619,223 4 154,806 $7,850,000 $40,050,001 ($32,200,001)

Clark County School District 585,716 4 146,429 - - -

Colony Capital, Inc. 546,480 1 546,480 - $369,498,686 ($369,498,686)

J.A. Kennedy Real Estate Co. 524,283 6 87,381 - - -

CDW Corporation 513,240 1 513,240 - - -

Southern Wine & Spirits America 467,583 1 467,583 - - -

Dale Roesener 463,641 4 115,910 - - -

Clearwater Paper Corporation 450,898 1 450,898 - - -

Tronox 433,731 1 433,731 - - -

Angelo, Gordon & Co. 429,808 5 85,962 - - -

Lincoln Property Company 425,752 6 70,959 $72,000,000 - $72,000,000

MassMutual 421,093 1 421,093 - - -

Landstar Management 419,679 5 83,936 $14,905,987 - $14,905,987

9/21/2020Copyrighted report licensed to ROI Appraisal Britton Group - 103161

Page 16

PlayersLas Vegas Industrial

TOP BUYERS PAST 12 MONTHS

Company Name Sales Volume Transactions Transacted SF Avg SF Cap Rate Sale Price/SF

The Blackstone Group L.P. $939,975,001 32 6,861,661 214,427 - $137

Preylock Holdings, LLC $110,000,000 1 855,000 855,000 - $129

Lincoln Property Company $72,000,000 6 425,752 70,959 - $169

Black Creek Group $62,384,214 1 670,798 670,798 5.3% $93

Prologis, Inc. $58,178,544 2 400,824 200,412 - $145

The Moulton Company $45,226,000 1 322,560 322,560 - $140

Dermody Properties, Inc. $35,450,000 3 384,323 128,108 - $92

EastGroup Properties, Inc. $25,473,110 3 195,938 65,313 - $130

Nicola Crosby Real Estate Asset Managemen… $20,024,997 10 138,219 13,822 - $145

Nicola Wealth Management $20,024,997 10 138,219 13,822 - $145

Linden Capital Partners LP $20,000,000 1 18,847 18,847 - $1,061

Wells Enterprises $19,150,000 1 193,700 193,700 - $99

Cooper & Brain Oil Inc $19,000,000 1 130,842 130,842 - $145

Eric A Knudsen Trust $15,750,000 1 85,943 85,943 7.8% $183

Madaluxe Group $15,199,999 4 103,613 25,903 - $147

Landstar Management $14,905,987 1 106,680 106,680 4.3% $140

Clarion Partners $12,100,000 1 83,125 83,125 5.3% $146

Dairy Farmers of America $10,778,260 1 64,783 64,783 - $166

The Krausz Companies, Inc. $10,500,000 1 86,515 86,515 8.7% $121

Arcadia Inc $10,449,765 3 88,915 29,638 - $118

Dillon, Julie $10,281,250 2 61,375 30,688 - $168

NFI $9,650,000 1 82,900 82,900 - $116

CapRock Partners $7,850,000 2 92,223 46,112 - $85

Alon Pinchassi $7,595,466 3 115,922 38,641 - $66

Wyandotte, Inc. $6,800,000 1 39,975 39,975 - $170

John & Debra Hansen $6,250,000 1 44,000 44,000 - $142

Titan Solar Power $5,600,000 2 28,204 14,102 - $199

Caliber Collision Centers $5,250,000 1 55,974 55,974 - $94

Wright, Leo & Cristina $4,800,000 2 48,564 24,282 - $99

Borris L Shekhter $4,450,000 1 27,799 27,799 - $160

Tiberti Company $3,800,000 1 28,450 28,450 - $134

Nordis Direct, Inc. $3,589,304 1 21,886 21,886 - $164

Community Ambulance $3,250,000 1 21,000 21,000 - $155

MCA Realty, Inc. $3,064,000 1 27,195 27,195 - $113

Benjamin P Millis $2,925,000 1 25,875 25,875 5.7% $113

GUNSALLUS, DANNY $2,880,000 1 20,038 20,038 - $144

Marc Evan Badain $2,708,401 2 17,457 8,729 - $155

David A Bialis $2,685,000 1 13,625 13,625 6.5% $197

Brookfield Asset Management, Inc. $2,680,000 1 12,000 12,000 - $223

Daniel J. Thistle $2,350,000 1 21,137 21,137 - $111

El-Ariss, Samer $2,300,000 1 10,136 10,136 - $227

Susan Ackerman $2,300,000 1 14,814 14,814 7.0% $155

9/21/2020Copyrighted report licensed to ROI Appraisal Britton Group - 103161

Page 17

PlayersLas Vegas Industrial

TOP SELLERS PAST 12 MONTHS

Company Name Sales Volume Transactions Transacted SF Avg SF Cap Rate Sale Price/SF

Global Logistic Properties Ltd $536,376,315 14 3,993,528 285,252 - $134

Colony Capital, Inc. $369,498,686 15 2,555,633 170,376 - $145

VanTrust Real Estate LLC $155,226,000 2 1,177,560 588,780 - $132

Brookfield Asset Management, Inc. $72,000,000 6 425,752 70,959 - $169

Hines $62,384,214 1 670,798 670,798 5.3% $93

CapRock Partners $40,050,001 10 276,443 27,644 - $145

Black Creek Group $38,123,738 1 381,804 381,804 - $100

Brass Cap Development LLC $32,318,110 4 234,910 58,728 - $138

Southern Nevada Operating Engineers $20,054,806 1 19,020 19,020 - $1,054

Flower One Holdings Inc $20,000,000 1 18,847 18,847 - $1,061

Unilever $19,150,000 1 193,700 193,700 - $99

Juliet Companies $19,000,000 1 130,842 130,842 - $145

CalSTRS $17,050,000 3 156,250 52,083 - $109

Panattoni Development Company, Inc. $17,050,000 3 156,250 52,083 - $109

Scheffler Family Trust $15,750,000 1 85,943 85,943 7.8% $183

BKM Capital Partners $15,199,999 4 103,613 25,903 - $147

LaPour Partners $14,905,987 1 106,680 106,680 4.3% $140

PACCAR, Inc. $13,350,000 1 226,157 226,157 - $59

Western Devcon Inc. $12,100,000 1 83,125 83,125 5.3% $146

Stuart, James M $11,340,134 10 91,324 9,132 - $124

Norwegian Government Pension Fund Global $11,050,000 2 79,082 39,541 - $140

Prologis, Inc. $11,050,000 2 79,082 39,541 - $140

Dean Foods Company $10,778,260 1 64,783 64,783 - $166

Tierra Management $10,500,000 1 86,515 86,515 8.7% $121

AML Properties Inc. $10,449,765 3 88,915 29,638 - $118

Donovan Properties Ltd LLC $9,650,000 1 82,900 82,900 - $116

Ansara, Robert $8,250,000 1 68,405 68,405 - $121

MCA Realty, Inc. $7,850,000 2 92,223 46,112 - $85

Spear Development $7,595,466 3 115,922 38,641 - $66

DiNapoli, John B $7,281,250 1 35,500 35,500 - $205

Gary W Lein $6,800,000 1 39,975 39,975 - $170

Puliz Moving & Storage $6,250,000 1 44,000 44,000 - $142

Kenneth & Debbie Kefalas $5,600,000 2 28,204 14,102 - $199

David A Dean $4,800,000 2 48,564 24,282 - $99

Blackard Family Trust $3,800,000 1 28,450 28,450 - $134

Stuart & Cynthia Reyburn $3,250,000 1 21,000 21,000 - $155

Petrus Partners, Ltd. $3,064,000 1 27,195 27,195 - $113

Crescent Electric Supply Company $2,925,000 1 25,875 25,875 5.7% $113

Pirie, Mark $2,880,000 1 20,038 20,038 - $144

Harber, Paul A and Nola A $2,685,000 1 13,625 13,625 6.5% $197

Lowenberg Corporation $2,680,000 1 12,000 12,000 - $223

Curtis Augustino Investments$2,625,000 1 27,987 27,987 - $94

9/21/2020Copyrighted report licensed to ROI Appraisal Britton Group - 103161

Page 18

PlayersLas Vegas Industrial

TOP BROKERS PAST 12 MONTHS

Company Name Sales Volume Transactions Transacted SF Avg SF Cap Rate Sale Price/SF

Eastdil Secured, LLC $759,249,392 30 5,653,146 188,438 - $134

CBRE $468,609,868 43 3,385,259 78,727 - $138

Colliers International $177,316,203 41 1,503,768 36,677 6.1% $118

JLL $137,924,120 4 1,313,374 328,344 - $105

RealComm Advisors $60,055,410 20 391,733 19,587 4.3% $153

Cushman & Wakefield $57,525,001 14 419,808 29,986 7.2% $137

Sun Commercial Real Estate $26,750,000 5 203,490 40,698 8.7% $131

SRS Real Estate Partners $15,750,000 1 85,943 85,943 7.8% $183

Berkshire Hathaway Commercial Services $9,897,999 5 99,815 19,963 - $99

Newmark Knight Frank $9,650,000 1 82,900 82,900 - $116

CORFAC International Inc. $8,410,825 6 53,863 8,977 - $156

Berkshire Hathaway Inc. $7,595,466 3 115,922 38,641 - $66

Realogy Corporation $7,595,466 3 115,922 38,641 - $66

Avison Young $7,415,000 5 54,065 10,813 5.7% $137

ArchCrest Commercial Partners $6,250,000 1 44,000 44,000 - $142

JW Commercial Real Estate $6,250,000 1 44,000 44,000 - $142

Elite Realty $6,189,000 4 47,500 11,875 - $130

Albright Callister & Associates $5,980,000 4 41,831 10,458 6.5% $143

Logic Commercial Real Estate $5,539,304 2 32,102 16,051 - $173

ERA Brokers Consolidated $4,355,785 5 54,794 10,959 6.6% $79

Simply Vegas - Green Valley $2,880,000 1 20,038 20,038 - $144

NAI Global $2,508,000 2 14,347 7,174 - $175

Griffis Realty Investments, LLC $2,385,000 4 18,294 4,574 - $130

Ackerman Realty & Property Management $2,300,000 1 14,814 14,814 7.0% $155

Ohana Realty Group $2,300,000 1 14,814 14,814 7.0% $155

Choice 1 Realty $2,129,000 2 16,068 8,034 - $132

KW Realty International $2,100,000 1 10,484 10,484 - $200

Evolve Realty $2,060,480 1 12,878 12,878 - $160

American Premiere Homes $2,000,000 1 20,000 20,000 - $100

Award Realty Corp. $2,000,000 1 11,455 11,455 - $175

Brazill Team Real Estate $2,000,000 1 20,000 20,000 - $100

Realty One Group Eminence $2,000,000 1 11,455 11,455 - $175

SVN | The Equity Group $1,806,000 3 16,778 5,593 - $108

Polk Realty $1,700,000 1 7,920 7,920 - $215

Thacker & Randall Group $1,658,350 1 9,755 9,755 - $170

Win Win Real Estate $1,575,000 2 8,300 4,150 - $190

Award Realty $1,364,000 1 8,345 8,345 - $163

SGH Commercial Advisers $1,281,540 1 6,045 6,045 - $212

Tom Love Group $1,275,000 1 8,330 8,330 7.5% $153

TR Realty $1,150,000 1 10,000 10,000 - $115

Berggren Commercial Real Estate $1,140,000 1 6,270 6,270 - $182

Voit Real Estate Services $1,075,000 1 5,800 5,800 - $185

9/21/2020Copyrighted report licensed to ROI Appraisal Britton Group - 103161

Page 19

Britton-Adamo Group/ROI Appraisal File Number 20-089

DEFINITIONS

Britton-Adamo Group/ROI Appraisal File Number 20-089

DEFINITIONS FEE SIMPLE ESTATE

“Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.”

Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015)

LEASED FEE ESTATE “The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires"

Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015)

LEASEHOLD ESTATE “The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease”

Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015)

HIGHEST AND BEST USE “The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity.”

Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015)

MARKETING TIME “An opinion of the amount of time it might take to sell a real or personal property interest at the concluded market value level during the period immediately after the effective date of an appraisal. Marketing time differs from exposure time, which is always presumed to precede the effective date of an appraisal.”

Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015)

EXPOSURE TIME “The estimated length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal. Comment: Exposure time is a retrospective opinion based on an analysis of past events assuming a competitive and open market.”

Source: Uniform Standards of Professional Appraisal Practice (USPAP)

MARKET VALUE “A type of value that is the major focus of most real property appraisal assignments. Both economic and legal definitions of market value have been developed and refined, such as the following. 1. The most widely accepted components of market value are incorporated in the following definition: The most probable price that the specified property interest should sell for in a competitive market after a reasonable exposure time, as of a specified date, in cash, or in terms equivalent to cash, under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, for self-interest, and assuming that neither is under duress. 2. Market value is described, not defined, in the Uniform Standards of Professional Appraisal Practice (USPAP) as follows: A type of value, stated as an opinion, that presumes the transfer of a property (i.e., a right of ownership or a bundle of such rights), as of a certain date, under specific conditions set forth in the definition of the term identified by the appraiser as applicable in an appraisal. Comment: Forming an opinion of market value is the purpose of many real property appraisal assignments particularly when the client’s

Britton-Adamo Group/ROI Appraisal File Number 20-089

intended use includes more than one intended user. The conditions included in market value definitions establish market perspectives for development of the opinion. These conditions may vary from definition to definition but generally fall into three categories: (1) the relationship, knowledge, and motivation of the parties (i.e., seller and buyer); (2) the terms of sale (e.g., cash, cash equivalent, or other terms); and (3) the conditions of sale (e.g., exposure in a competitive market for a reasonable time prior to sale). USPAP also requires that certain items be included in every appraisal report. Among these items, the following are directly related to the definition of market value:

• Identification of the specific property rights to be appraised. • Statement of the effective date of the value opinion. • Specification as to whether cash, terms equivalent to cash, or other precisely described financing terms are assumed as the basis of the appraisal. • If the appraisal is conditioned upon financing or other terms, specification as to whether the financing or terms are at, below, or above market interest rates and/or contain unusual conditions or incentives. The terms of above- or below-market interest rates and/or other special incentives must be clearly set forth; their contribution to, or negative influence on, value must be described and estimated; and the market data supporting the opinion of value must be described and explained.

3. The following definition of market value is used by agencies that regulate federally insured financial institutions in the United States: The most probable price that 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:

• Buyer and seller are typically motivated; • Both parties are well informed or well advised, and acting in what they consider their best interests; • A reasonable time is allowed for exposure in the open market; • Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and • 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. (12 C.F.R. Part 34.42(g); 55 Federal Register 34696, August 24, 1990, as amended at 57 Federal Register 12202, April 9, 1992; 59 Federal Register 29499, June 7, 1994)

4. The International Valuation Standards (IVS) Council defines market value for the purpose of international standards as follows: The estimated amount for which a property should exchange on the valuation date between a willing buyer and a willing seller in an arm’s-length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently, and without compulsion. 5. The Uniform Standards for Federal Land Acquisitions defines market value as follows: Market value is the amount in cash, or on terms reasonably equivalent to cash, for which in all probability the property would have sold on the effective date of the appraisal, after a reasonable exposure time on the open competitive market, from a willing and reasonably knowledgeable buyer, with neither acting under any compulsion to buy or sell, giving due consideration to all available economic uses of the property at the time of the appraisal.”

Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015)

“AS IS” MARKET VALUE “The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date.”

Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015)

PROSPECTIVE OPINION OF VALUE “A value opinion effective as of a specified future date. The term does not define a type of value. Instead, it identifies a value opinion as being effective at some specific future date. An opinion of value as of a prospective date is frequently sought in connection with projects that are proposed, under construction, or under conversion to a new use, or those that have not yet achieved sellout or a stabilized level of long-term occupancy.”

Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015)

Britton-Adamo Group/ROI Appraisal File Number 20-089

AGGREGATE OF RETAIL VALUE (ARV)

“The sum of the separate and distinct market value opinions for each of the units in a condominium, subdivision development, or portfolio of properties, as of the date of valuation. The aggregate of retail values does not represent an opinion of value of all the units as though sold together in a single transaction;; it is simply the total of multiple market value conclusions.”

Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015)

EXTRAORDINARY ASSUMPTION

“An assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions. Comment: Uncertain information might include physical, legal, or economic characteristics of the subject property; or conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis.”

Source: Uniform Standards of Professional Appraisal Practice (USPAP), 2020-2021 ed., Appraisal Standards Board of The Appraisal Foundation

HYPOTHETICAL CONDITION

“A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. Comment: Hypothetical conditions are contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis.”

Source: Uniform Standards of Professional Appraisal Practice (USPAP), 2020-2021 ed., Appraisal Standards Board of The Appraisal Foundation

SALES COMPARISON APPROACH

“The process of deriving a value indication for the subject property by comparing sales of similar properties to the property being appraised, identifying appropriate units of comparison, and making adjustments to the sale prices (or unit prices, as appropriate) of the comparable properties based on relevant, market-derived elements of comparison. The sales comparison approach may be used to value improved properties, vacant land, or land being considered as though vacant when an adequate supply of comparable sales is available.”

Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015)

RETROSPECTIVE VALUE OPINION

“A value opinion effective as of a specified historical date. The term retrospective does not define a type of value. Instead, it identifies a value opinion as being effective at some specific prior date. Value as of a historical date is frequently sought in connection with property tax appeals, damage models, lease renegotiation, deficiency judgments, estate tax, and condemnation. Inclusion of the type of value with this term is appropriate, e.g., “retrospective market value opinion.”

Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015)

Britton-Adamo Group/ROI Appraisal File Number 20-089

QUALIFICATIONS OF THE APPRAISER

Britton-Adamo Group/ROI Appraisal File Number 20-089

Qualifications of LUKE J. ADAMO, MAI

AFFILIATIONS/LICENSES Member, Appraisal Institute, #476072 Certified General Appraiser, State of Nevada (License #07352 expires 5/31/21) EMPLOYMENT: Britton-Adamo Group/ROI Appraisal, Henderson, NV Appraiser 2002 to present

REAL ESTATE EXPERIENCE: Residential Sales, Highest and Best Use Analysis; Real Estate

Market and Submarket Analysis; Data Research and Analysis; Site and Project Feasibility Studies; Financial Cash Flow Analysis

APPRAISAL EXPERIENCE: Federal Litigation Support and Testimony, Apartment Complexes, Car Dealerships, Automotive Service Centers, Residential Condominium Projects, Gas/Convenience Stores, Industrial and Manufacturing Facilities, Master Planned Communities, Medical and Professional Office Buildings, Bar/Taverns and Restaurants, Retail Shopping Centers, Self Storage Facilities, Residential Subdivisions, Residential Lots, Vacant Land

GENERAL EDUCATION: University of Nevada, Las Vegas

AFFILIATIONS: President – Las Vegas Chapter of the Appraisal Institute Vice Chair – Nevada State High School Governing Body Clark County Board of Equalization Las Vegas Metro Chamber of Commerce – Leadership Las Vegas Class of 2016 MAI Designation – 2015 NAIOP Member Litigation Professional Development Certification

HOBBIES: Community Volunteering, Outdoor Physical Activity, and World

Traveling REFERENCES: Available Upon Request

Britton-Adamo Group/ROI Appraisal File Number 20-089


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