I80 Side Rail Appraisal Letter

APPRAISAL REPORT
0000000000
I-80 Side rail property

Vacant Land
6 South 5600 West
Salt Lake City, Utah 84116
BBG File #0122009242

Client File #scmrs-22137
Prepared For
Mr. Robert Keller
Snow Christensen & Martineau
10 Exchange Place, 11th Floor
Salt Lake City, UT 84111
Report Date
May 13, 2022
Prepared By
BBG, Inc., Salt Lake City Office
3115 Lion Lane, Suite 310
801-321-0050
Client Manager: J. Philip Cook, MAI

pcook@bbgres.com
May 13, 2022
Mr. Robert Keller

Snow Christensen & Martineau
10 Exchange Place, 11th Floor
Re: Appraisal of Real Property

I-80 Side rail property
6 South 5600 West
Salt Lake City, Utah 84116
BBG File #0122009242
Client File #scmrs-22137
Dear Mr. Keller:
In accordance with your authorization (per the engagement letter found in the Addenda of this report), an Appraisal
Report of the above-referenced property has been prepared.
The subject property is 41.03 acres of vacant land alongside a rail car storage facility. The property is approximately
6,500 feet from east to west and 350 feet from north to south.
The property is vacant land, encumbered with multiple utility easements including the UNEV refined petroleum
pipeline, a 135KV power distribution line, an irrigation canal and roughly 6 acres of wetlands (3 permanent and 3
seasonal).
This Appraisal Report was prepared to conform with the requirements of the Uniform Standards of Professional
Appraisal Practice (USPAP). This report has been written in accordance with the Code of Ethics and the Standards of
Professional Practice of the Appraisal Institute. In addition, this report is intended to be in compliance with additional
requirements of Snow Christensen & Martineau (client) as applicable. This report is intended to be used by the
intended user(s) named herein; no other party may rely upon the opinions presented in this report.
EXTRAORDINARY ASSUMPTION(S) AND HYPOTHETICAL CONDITION(S)

The val ues pres ented wi thi n thi s apprai s al report are s ubject to the extraordi nary as s umpti ons and hypotheti cal
condi ti ons l i s ted bel ow. Purs uant to the requi rement wi thi n Uni form Standards of Profes s i onal Apprai s al Practi ce
Standards , i t i s s tated here that the us e of any extraordi nary as s umpti ons mi ght have affected the as s i gnment
res ul ts .
Extraordinary Assumption(s) Thi s apprai s al empl oys no extraordi nary as s umpti ons .
Hypothetical Condition(s) Thi s apprai s al empl oys no hypotheti cal condi ti ons .
Based on the analysis undertaken, the following value opinion(s) have been developed.
MARKET VALUE CONCLUSION(S)

Appraisal Premise Interest Appraised Date of Value Value Conclusion
Market Value - As Is assuming adequate access Fee Si mpl e Apri l 22, 2022 $3,680,000
Market Value - As Is - Without access Fee Si mpl e Apri l 22, 2022 $2,210,000
This letter must remain attached to the report, which should be transmitted in its entirety for the value opinion(s)
set forth above to be relied upon by the intended user(s).
I-80 SIDE RAIL PROPERTY APPRAISAL

Mr. Keller
May 13, 2022
Page 2
BBG, Inc. appreciates the opportunity to have performed this appraisal assignment on your behalf. If we may be of
further service, please contact the Client Manager.
Sincerely,
Da rrel Mos s , MAI Corey Cook, MAI

Uta h Certi fi ed Genera l Appra i s er Uta h Certi fi ed Genera l Appra i s er
Li cens e #: 6272290-CG00 Li cens e #: 6404407-CG00
801-321-0083 801-321-0059
dmos s @bbgres .com ccook@bbgres .com

T A BLE OF C ONTENTS
Subject Property .................................................................................................................................................... 1
Summary of Salient Facts ....................................................................................................................................... 3
Property Transaction History ................................................................................................................................. 6
Scope of Work ....................................................................................................................................................... 7
Regional Overview ................................................................................................................................................. 9
Neighborhood Overview...................................................................................................................................... 10
Site Description ................................................................................................................................................... 16
Property Assessment and Tax Analysis ................................................................................................................ 23
Market Analysis ................................................................................................................................................... 24
COVID-19 & Broader Economic Overview ............................................................................................................ 29
Highest and Best Use ........................................................................................................................................... 30
Valuation Process ................................................................................................................................................ 32
Land Valuation ..................................................................................................................................................... 33
Certification ......................................................................................................................................................... 42
Standard Assumptions and Limiting Conditions ................................................................................................... 43
Addenda .............................................................................................................................................................. 47

SUBJECT PROPERTY 1
S UB JEC T P ROPERTY

SUBJECT PROPERTY 2
A E R IA L P H O T O GR A P H
Subject

SUMMARY OF SALIENT FACTS 3
S UMMARY OF S ALIENT FACTS

APPRAISAL INFORMATION
Client Snow Chri s tens en & Ma rtinea u

10 Excha nge Pl a ce, 11th Fl oor,
Sa l t La ke Ci ty, UT 84111
Intended User(s) Thi s a ppra i s a l report ma y onl y be rel i ed upon by the cl i ent a nd i ntended us er(s ) na med
herei n.
Intended Use Thi s a ppra i s a l i s to be us ed for i nterna l pl a nni ng a nd potentia l l y for purcha s e
negotia tion purpos es .
Property Rights Appraised / Premise •Ma rket Va l ue of the s ubject property, As Is a s of Apri l 22, 2022 a s s umi ng a cces s
•Ma rket Va l ue of the s ubject property, a s of Apri l 22, 2022 a s s umi ng no a cces s
Date of Inspection Apri l 22, 2022
Marketing Time 12 months
Exposure Time 12 months
Owner of Record Suburba n La nd Res erve Inc.
Property Contact(s) Property wa s di s cus s ed wi th Robert Kel l er. The property wa s i ns pected by Da rrel l Mos s .
Most Probable Purchaser Owner-Us er
Highest and Best Use
If Vacant Indus tri a l Devel opment/As s embl ege

PROPERTY DATA
Property Name I-80 Si de ra i l property

Address 6 South 5600 Wes t
Sa l t La ke Ci ty, Utah 84116
Location Long i ndus tri a l pa rcel between Inters tate 80 a nd a ra i l s tora ge ya rd, wes t of 5600 Wes t
Property Description La nd (Indus tri a l )
Va ca nt La nd
County Sa l t La ke
Parcel Number 07-35-351-001 a nd 07-34-477-001
Census Tract No. 1139.06
Legal Description 07-35-351-001
BEG AT SE COR SEC 35, T 1N, R 2W, S L M; N 0^02'20" E 600.7 FT; S 89^56'49" W 5015 FT M OR
L; S 600.7 FT; N 89^56'49" E 5015 FT M OR L TO BEG. LESS TRACTS DEEDED TO UTAH DEPT
TRANSPORTATION. 44.79 AC, M OR L. 4724-918 4977-0105 6093-1392
07-34-477-001
ALL BLKS 1, 2, 6, 7, 10, & 12, MAPLEWOOD ADD; EXCEPT STATE RD, RR PROP, & TRACTS DEEDED
TO UTAH DEPT OF TRANSPORTATION.3879-0438 4977-0116 6093-1392
Addi tiona l l ega l des cri ption of i ndi vi dua l pa rcel s i s pres ented i n a s urvey i n the
a ddenda . The Survey excl udes roa dwa y dedi ca tions a nd ha s a n overa l l s i ze of 41.03
a cres .
Site Area
Primary Site (Usable Area) 1,132,560 s qua re feet (26.00 a cres )
Surplus Land 654,707 s qua re feet (15.03 a cres )
Total 1,787,267 square feet (41.03 acres)
Zoning M-1; Indus tri a l
Flood Status Zone X (uns ha ded) i s a Non-Speci a l Fl ood Ha za rd Area (NSFHA) of mi ni ma l fl ood ha za rd,
us ua l l y depi cted on Fl ood Ins ura nce Ra te Ma ps (FIRM) a s a bove the 500-yea r fl ood l evel .
Thi s i s a n a rea i n a l ow to modera te ri s k fl ood zone tha t i s not i n a ny i mmedi a te da nger
from fl oodi ng ca us ed by overfl owi ng ri vers or ha rd ra i ns . In communi ties tha t pa rtici pa te
i n the Na tiona l Fl ood Ins ura nce Progra m (NFIP), fl ood i ns ura nce i s a va i l a bl e to a l l
property owners a nd renters i n thi s zone.
RISK SUMMARY
Advantages Location near Interstate-80 and rail lines. Strong industrial market.
Challenges Difficult shape for development, multiple easements and some wetlands.
VALUE INDICATIONS
As Is Assuming Adequate Access as of April 22, 2022
Land Value With Access $3,680,000 $3.25 per us a bl e s qua re foot

Land Value With Access $2.22 per s qua re foot overa l l
Without Access as of April 22, 2022
Land Value - Without Access $2,210,000 $1.95 per us a bl e s qua re foot
Land Value - Without Access $1.33 per s qua re foot overa l l

EXTRAORDINARY ASSUMPTION(S) AND HYPOTHETICAL CONDITION(S)

The val ues pres ented wi thi n thi s apprai s al report are s ubject to the extraordi nary as s umpti ons and hypotheti cal
condi ti ons l i s ted bel ow. Purs uant to the requi rement wi thi n Uni form Standards of Profes s i onal Apprai s al Practi ce
Standards , i t i s s tated here that the us e of any extraordi nary as s umpti ons mi ght have affected the as s i gnment
res ul ts .
Extraordinary Assumption(s) Thi s apprai s al empl oys no extraordi nary as s umpti ons .
Hypothetical Condition(s) Thi s apprai s al empl oys no hypotheti cal condi ti ons .

PROPERTY TRANSACTION HISTORY 6
P ROPERTY T RANSACTION H ISTORY

There have been no known transactions of the subject property within the three years prior to the effective date
of this appraisal.

SCOPE OF WORK 7
S COPE OF W ORK
The scope of work best defines the needs of the client(s) and intended user(s) of the report and dictates what factors
an appraiser considered during the valuation process. The scope of work summarized below has been deemed
acceptable as it meets or exceeds both the expectations of parties who are regularly intended users for similar
assignments and what an appraiser’s peers’ actions would be in performing the same or a similar assignment. As
such, the scope of work summarized below is deemed appropriate for this assignment based on its parameters and
will produce credible assignment results. Additional scope details are included in appropriate sections of this report.
There are uncertainties regarding legal access to the subject parcel. Accordingly, for this assignment we have been
asked to appraise the subject property assuming adequate access exists, and without access.
SCOPE OF THE INVESTIGATION

General and Market Data Analyzed ▪ Regional economic data and trends
▪ Market analysis data specific to the subject property type
▪ Published survey data
▪ Neighborhood demographic data
▪ Comparable cost, sale, rental, expense, and capitalization rate data
▪ Floodplain status
▪ Zoning information
▪ Assessor’s information
▪ Interviewed professionals knowledgeable about the subject’s property type
and market
Inspection Details The property was inspected by Darrell Moss on April 22, 2022. At the time of the
inspection it was evident that the oil pipeline is near an existing 135KV powerline
easement. It also appears that a portion of the wetlands occupy a small portion of
the property that is encumbered with utility easements. It is also evident that there
is a pond occupying approximately three acres that is well established and not a
seasonal pond. The surrounding area of the pond is thick with cat tails and other
wetland vegetation.
A title search was not made available to the appraisers and a Specific mapping of
easements was not available. However, the UNEV petroleum pipeline consumes a
portion of the subject, the US Fish and wildlife Inventory identifies nearly six acres
of wetlands on the subject, and there are 135K power lines. Overall, approximately
30% of the subject is encumbered. However, it appears that a portion of the
encumbrances may be shared. In our estimation based on google earth aerial
measurements, nearly 63% of the property is considered usable land, which we
estimate to be approximately 1,132,560 square feet of usable area.
Value in industrial property is primarily in usable land. Wetlands can at times be

filled, but costs are often prohibitive. For the purposes of this appraisal, value will
be determined based on the 26 acres (1,132,560 square feet) estimated as usable
land. The additional land identified as surplus land and is not considered to
contribute to overall value.

SCOPE OF WORK 8
Data Sources DATA SOURCES

Site Size As s es s or's Records
Ta x Da ta As s es s or's Records
Zoning Informa tion SLC Pla nning Dept, Web s ite
Flood Sta tus FEMA
Compa ra ble La nd Sa les Sha red da ta , Interna l files , Cos ta r, MLS
VALUATION METHODOLOGY
Most Probable Buyer To apply the most relevant valuation methods and data, the appraiser must first
determine the most probable buyer of the subject property. Based on the analyses
presented, the most probable buyer of the subject property would be a(n) Owner-
User
Valuation Methods Utilized This appraisal employs only the Sales Comparison Approach. Based on our analysis
and knowledge of the subject property type and relevant investor profiles, it is our
opinion that this approach would be considered necessary and applicable for market
participants. Since no improvements exist on site, the Cost Approach is not relevant.
The property generates no income and is not typically marketed, purchased or sold
on the basis of anticipated lease income; thus, the Income Capitalization Approach
was precluded.
DEFINITIONS
Pertinent definitions, including the definition of market value, are included in the glossary, located in the Addenda of this
report. The following definition of market value is used by agencies that regulate federally insured financial institutions in the
United States:
Market Value 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 are 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. [1]
LEVEL OF REPORTING DETAIL

Standards Rule 2-2 (Real Property Appraisal, Reporting) contained in USPAP requires each written real property appraisal
report to be prepared as either an Appraisal Report or a Restricted Appraisal Report.
This report is prepared as an Appraisal Report. An Appraisal Report must at a minimum summarize the appraiser’s analysis
and the rationale for the conclusions.
[1] (Interagency Appraisal and Evaluation Guidelines; December 10, 2010, Federal Register, Volume 75 Number 237, Page 77472)

REGIONAL OVERVIEW 9
R EGIONA L O VERV IEW
R E G I ONA L M A P
Subject

NEIGHBORHOOD OVERVIEW 10
N EIGHB ORHOOD O VERV IEW

Please see the aerial maps below on which the Subject Property location is shown.
N E IG H B OR H O OD M A P
Subject
Jurisdiction and Proximity

The Subject Property is located within the corporate jurisdiction of Salt Lake City, which forms the northern boundary
of Salt Lake County. Salt Lake City is surrounded by Davis County to the north and South Salt Lake City and West
Valley City to the south. The Central Business District of Salt Lake City is roughly five miles east of the Subject
Property, while vehicular access to the Salt Lake International Airport is 2.5 miles east.
Interstate 80, the primary east-west transportation artery through the state and is directly north of the Subject
Property. Interstate 80 connects with Interstate 15, the primary north-south transportation artery through the state,
and Interstate 215, a loop around the Salt Lake Valley. It also connects with Bangerter Highway, a major north-south
thoroughfare in the western portion of the Salt Lake Valley at approximately 4000 West.

Boundaries and Neighborhood Land Use
A neighborhood is defined as, “a group of complementary land uses; a congruous grouping of inhabitants, buildings,
or business enterprises.”1 Neighborhood boundaries may consist of well-defined natural or man-made barriers or
they can be more or less well defined by a distinct change in land use.
The neighborhood is generally defined by the following boundaries.
- North Boundary Salt Lake City Limits
- South Boundary Highway 201
- East Boundary Interstate 215
- West Boundary Salt Lake City limits
The neighborhood comprises primarily newer industrial properties with development mostly in the eastern part of
the neighborhood near I-215 and Bangerter Highway with more recent development just west of the Salt Lake
Airport both north and south of the I-80 and 5600 West interchange. The predominant land uses within the
neighborhood are the airport, industrial warehouses, and manufacturing, with commercial uses located along I-80.
Salt Lake City International Airport. The airport is currently undergoing an on-site airport facilities replacement,
depicted below, with an expected cost of $3 billion. A portion of the new airport is open now and completion of
construction of new facilities is scheduled for 2024.
1 The Dictionary of Real Estate Appraisal, Appraisal Institute, 6th Edition, 2015, p. 156.

Salt Lake International Center. Industrial uses are generally located along 4000 West south of I-80, and 5600 West
north and south of I-80. The most notable business park development is the Salt Lake International Center (“SLIC”).
SLIC is sited on some 1,100 acres on the north side of I-80 immediately west of the airport and 0.5 miles east of the
Subject Property. Much of this park is built-out, which has spurred development north and west of its traditional
boundaries, including land that was formerly part of a landfill, small portions of which were reclaimed years ago.
There is rail service in SLIC, with a spur located on the west side. This enhances industrial development opportunity
given this need by some industrial users.
State Prison Relocation. Officials broke ground in August 2017 for construction of a new Utah State Prison northwest
of the Subject Property. Infrastructure construction began in January 2017. Construction is completed with prisoners
expected to be relocated from the existing prison in 2021/2022.
The cost of the project, which will accommodate a population capacity of 4,000, is currently estimated at
approximately near $1 Billion, up from the original budget of $550 million. This increase resulted from higher site-
specific costs – $154 million rather than the $100 million originally targeted prior to actual site selection, plus an
average annual 8.6% increase in construction costs.
The very high site-specific costs result from the remote location of the prison without any pre-existing infrastructure,
the low elevation of the land, and soils conditions/wetlands issues.
Inland Port Authority. In the 2018 legislative session, the state legislature passed a bill to create an inland port
authority to oversee land use over nearly 20,000 acres north of I-80 between I-215 (approximately 2200 West) and
8400 West (1/2 mile west of the Subject Property), excluding the airport; and certain portions of land south of I-80
between Bangerter Highway (4000 West) and Kennecott’s tailings pond at about 8000 West.

The goal is to establish an international trade hub for the western portion of the United States, with the intent to
attract businesses that, “engage in regional, national, or international trade…” 2 and complementary businesses.
The bill is controversial as Salt Lake City views it as a land grab from the state in order to control development in
what would otherwise be city jurisdiction. The City is in process of suing the state. Accordingly, there may be
modifications over time. However, the bill paves the way for the Governor’s Office of Economic Development, Salt
Lake City Economic Development, and others to market Utah as a distribution hub that could take pressure off
coastal cities and facilitate faster delivery of goods throughout the country.
SLC Port Global Logistics Center. The NWQ, LLC, an entity comprising Colmena Group, Wadsworth Development
Group, and Stokes Partners, with some affiliation with Kennecott (Rio Tinto) is proposing the SLC Port Global Logistics
Center on 3,000 acres of land. This entity acquired over 1,500 acres of the property in November 2017, with
Kennecott already owning much of the remainder. NWQ, LLC announced in February 2018 that Phase I would consist
of 10 buildings and 7.5 million square feet of bulk distribution and manufacturing space. Many of the buildings have
been recently completed and more are on the way.
This site, most of which will require a large amount of fill to bring it to the minimum elevation threshold for
development, has moved up significantly in development timing because of the prison development. Its location
(identified in the following aerial image as NWQ) is shown below.
NWQ
Growth Cycle
The neighborhood is in a strong growth cycle due to very strong economic conditions generally, the city’s airport
replacement project, the state prison relocation, and NWQ, LLC’s project. Vacant land is giving way to industrial and
2 S.B. 234 Utah Inland Port Authority.

business park development (e.g., Amazon recently completed multiple ~1 million square foot buildings, and
development is anticipated to continue.
Age/Life Trends
Improvements range in age from new to about 30 years, with much new construction occurring. There is a large
amount of vacant land available for future growth.
Access/Linkages
Interstate 80, the state’s primary east/west freeway, is immediately accessible via 7200 West a short distance to the
east of the Subject Property. I-80 links with Interstate 15, the state’s primary north/south freeway, approximately
7.7 miles east, and I-215 approximately 5 miles east.
UDOT has a long-term plan to construct a future phase of the Mountain View Corridor (“MVC”) that will eventually
connect from I-80 to Utah County. The MVC will impact the neighborhood (and most likely the Subject Property) as
shown in the map below.
Future Phase of Mountian View Corridor Through Neighborhood
The MVC as currently planned will connect to Interstate 80 at the parcel bordering the subject to the east. Plans for
the MVC interchange with Interstate 80 have not been designed. UDOT has indicated that the project near the

subject has not been funded, and land has not been acquired and design work has not been done. Timing is
anticipated within 3 to 10 years. The MVC is completed northerly to California Avenue, 1.8 miles south of the subject.
The location of the subject neighborhood in comparison to other attractions and landmarks is shown in the table
below:
DISTANCE TO SUPPORTIVE USES / ACCESS

Type Distance Direction
Interstate/Freeways
Inters tate 15 6.6 mi l es E
Inters tate 215, SLC, UT 4.6 mi l es E
Transportation Centers
Sa l t La ke Interna tiona l Ai rport, Sa l t La ke Ci ty,UT 3.1 mi l es E
Shopping Facilities
Ci ty Creek, SLC, UT 11.4 mi l es E
Shops a t South Town, Sa ndy, UT 16.1 mi l es SE
Fa s hon Pl a ce, Murra y, UT 12.1 mi l es SE
Education Centers
Uni vers i ty of Utah, SLC, UT 10.2 mi l es E
Bri gha m Young Uni vers i ty, Provo, UT 41.1 mi l es SE
Utah Va l l ey Uni vers i ty, UT 37.9 mi l es SE
Weber State Uni vers i ty,Ogden, UT 29.6 mi l es N
Employment Centers
CBD, Sa l t La ke Ci ty, UT 7.6 mi l es E
Sa ndy, UT 17.5 mi l es SE
Landmarks / Other
Templ e Squa re, Sa l t La ke Ci ty, UT 7.6 mi l es E
Al ta Ski Res ort, Al ta, UT 24.3 mi l es SE
Pa rk Ci ty, Utah 29.5 mi l es E

SITE DESCRIPTION 16
S ITE D ESCRIPTION

SITE DESCRIPTION 17
GENERAL SITE DESCRIPTION OVERVIEW
Location Long i ndus tri a l pa rcel between Inters ta te 80 a nd a ra i l s tora ge ya rd, wes t of 5600 Wes t
Parcel Number 07-35-351-001 a nd 07-34-477-001
Legal Description 07-35-351-001
BEG AT SE COR SEC 35, T 1N, R 2W, S L M; N 0^02'20" E 600.7 FT; S 89^56'49" W 5015 FT M OR
L; S 600.7 FT; N 89^56'49" E 5015 FT M OR L TO BEG. LESS TRACTS DEEDED TO UTAH DEPT
TRANSPORTATION. 44.79 AC, M OR L. 4724-918 4977-0105 6093-1392
07-34-477-001
ALL BLKS 1, 2, 6, 7, 10, & 12, MAPLEWOOD ADD; EXCEPT STATE RD, RR PROP, & TRACTS DEEDED
TO UTAH DEPT OF TRANSPORTATION.3879-0438 4977-0116 6093-1392
Addi ti ona l l ega l des cri pti on of i ndi vi dua l pa rcel s i s pres ented i n a s urvey i n the
a ddenda . The Survey excl udes roa dwa y dedi ca ti ons a nd ha s a n overa l l s i ze of 41.03
a cres .
Site Area
Primary Site 1,132,560 s qua re feet (26.00 a cres )
Surplus Land 654,707 s qua re feet (15.03 a cres )
Total 1,787,267 square feet (41.03 acres)
Configuration Irregul a r
Topography Va ryi ng
Drainage
Utilities/Municipal Services Typi ca l uti l i ti es a nd muni ci pa l s ervi ces a va i l a bl e nea r the s i te.
Floodplain Zone Map Date
Zone X (Uns ha ded) 49035C0120E September 22, 2001
Zone X (uns ha ded) i s a Non-Speci a l Fl ood Ha za rd Area (NSFHA) of mi ni ma l fl ood ha za rd,
us ua l l y depi cted on Fl ood Ins ura nce Ra te Ma ps (FIRM) a s a bove the 500-yea r fl ood l evel .
Thi s i s a n a rea i n a l ow to modera te ri s k fl ood zone tha t i s not i n a ny i mmedi a te da nger
from fl oodi ng ca us ed by overfl owi ng ri vers or ha rd ra i ns . In communi ti es tha t pa rti ci pa te
i n the Na ti ona l Fl ood Ins ura nce Progra m (NFIP), fl ood i ns ura nce i s a va i l a bl e to a l l
property owners a nd renters i n thi s zone.
Census Tract No. 1139.06
Soil/Subsoil Conditions We di d not recei ve nor revi ew a s oi l report. However, we a s s ume tha t the s oi l 's l oa d-
bea ri ng ca pa ci ty i s s uffi ci ent to s upport exi s ti ng a nd/or propos ed s tructure(s ). We di d
not obs erve a ny evi dence to the contra ry duri ng our phys i ca l i ns pecti on of the property.
Environmental Concerns No unus ua l condi ti ons obs erved. No s tudi es provi ded. Si te i s a s s umed to be free of a ny
envi ronmenta l concerns .
Land Use Restrictions Mul ti pl e ea s ements for hi gh power el ectri c l i nes , refi ned petrol eum pi pel i ne, ra i l l i nes
dri vewa ys , i rri ga ti on ca na l , pond a nd wetl a nds , Inters ta te off-ra mp.
Hazards Nuisances Approxi ma tel y s i x a cres a re regi s tered wetl a nds ba s ed on photogra phs . 3 of thos e
a cres i s a n a cti ve pond
Frontage Inters ta te 80
Access Gra vel roa d through underpa s s of Inters ta te 80
Visibility Avera ge/Good
Surrounding Land Uses Ra i l s tora ge to the s outh, Inters ta te to the north
Enterprise Zone none
Traffic Counts Approxi ma tel y 27,000 vehi cl es per da y
Comments Inters ta te fronta ge a l ong tra i n tra cks . but not on a fronta ge roa d. 6500 feet ea s t to wes t,
350 to 400 feet north to s outh. Long na rrow pa rcel s evered by ra i l a nd roa dwa y
dedi ca ti ons .

SITE DESCRIPTION 18
ZONING
Designation M-1
Description Indus tri a l
Zoning Intent The ma nufa cturi ng di s tri cts a re i ntended to provi de a ppropri a te l oca tions for
ma nufa cturi ng, fa bri ca tion, proces s i ng, pa cka gi ng, di s tri bution, s tora ge, s hi ppi ng a nd
other tra ns portation a ctivi ties contri buting to the economi c ba s e of the ci ty; to
enha nce empl oyment opportuni ties ; to encoura ge the effi ci ent us e of l a nd; to
enha nce property va l ues a nd the tax ba s e; to i mprove the des i gn qua l i ty of i ndus tri a l
a rea s ; a nd to hel p i mpl ement a dopted pl a ns .
Compliance Va ca nt La nd therefore i t i s conformi ng
ZONING REQUIREMENTS
Permi tted Us es Offi ce, pa rki ng, retai l , l i ght ma nufa cturi ng, s tora ge, vehi cl e repa i r, wa rehous e,
whol es a l e di s tri bution
Mi ni mum Lot Si ze 10,000 Sq Ft
Ma xi mum Lot Si ze None
Mi ni mum Lot Wi dth 80 feet
Front (mi n. ft.) 15
Ma xi mum Hei ght 65 feet, Ra i l roa d offl oa di ng 85 feet

SITE DESCRIPTION 19
S ITE S URVEY
The image above is from Salt Lake County Assessors web site. The web site image differs from the Dominion
Engineering Associates survey presented in the addenda. Please note the vertical lines to the west side of the
subject. These are roadways planned many years ago, before the interstate was built. The same are documented in
the following image from the survey shown below, where the subject is highlighted in yellow, the petroleum pipeline
is in light green, the pond area is in light blue, and the designated roadways in white:
The roadways are not included in the overall acreage because they are not part of the property. However, roadway
dedications can be vacated if roadway use is not anticipated. Typically, the city would need to be paid for the
property based on an across the fence value.
The next part of the subject to the east is the following:

SITE DESCRIPTION 20
In this parcel the rail line controls/owns the part of the property highlighted in light purple. The rail property creates
a triangle shaped parcel of approximately 1 acre, severed by the rail lines. The next part of the subject going east is
next:
This is the better and most usable part of the subject, but there are wet areas, a canal and other easements. Based
on observation and google earth measurements, approximately 16 acres is considered usable.
The last ad easternmost part of the property is next. It is narrow and not considered usable acerage.

SITE DESCRIPTION 21
U SABLE AREA
The image above contains a summary of the usable area of the subject. The overall parcel is highlighted in red. The
usable area is shown in yellow.
The property to the east of the train tracks is superior and contains approximately 16 acres and is bound by a canal
and wetlands to the east and the rail line to the west.
The west property contains approximately 10 acres, bound by the rail line to the east, the oil pipeline to the north
and property boundary to the south and west with the potential to acquire the roadways if vacated by the city.
Z ONING M AP
Zoning for the subject is designated M-1. This is a light industrial and manufacturing zone.

SITE DESCRIPTION 22
W ETLANDS I NVENTORY M AP
National Wetlands Inventory showing approximately 6 acres of wetlands on the subject. The wetland habitat is
classified as PABF and PEM1A. The PABF is semi-permanently flooded, while the PEM1A classification is identified
as, “surface water is present for brief periods in growing season, temporarily flooded “

PROPERTY ASSESSMENT AND TAX ANALYSIS 23
P ROPERTY A SSESSMENT AND T A X A NALYSIS

P ROPERTY A SSESSMENT AND T AX D ATA
The following table summarizes the subject’s real property taxes for 2020 and 2021. The property is taxed under
greenbelt status:
REAL ESTATE ASSESSMENT AND TAXES

Tax ID No. 2020 2021
07-35-351-001 a nd 07-34-477-001 $3,575,100 $3,724,100
Ta x Va l ue Subtota l $3,575,100 $3,724,100
As s es s ed Va l ue @ 0.45% $16,486 $16,928
Genera l Ta x Ra te 0.0133 0.0130
Property Taxes $220 $220
Speci a l /Di rect As s es s ments $0 $0
Total Taxes $220 $220
D ELINQUENCY
There are no delinquent real property taxes. Real property taxes for the 2022 tax year are payable and due in
November 2022.

MARKET ANALYSIS 24
M A RKET A NA LYSIS
S ALT L AKE C ITY I NDUSTRIAL M ARKET
Costar is the source for the following data. The data reflects conditions of 2021 Q4, the most recent data available.
The initial discussion provides information on the overall Salt Lake City Industrial market.
CoStar’s 2021Q4 Base Case forecast is based on the Oxford Economics Baseline scenario published on December 21,
2021, which incorporates the strong growth experienced in the fourth quarter despite the emergence of the
Omicron variant. The outlook for the first quarter of 2022 envisions a moderate pullback in activity because of the
variant followed by some recovery in the early spring, driving economic growth in the first quarter to about 3.4%
annualized. Economic growth in 2022 is expected to reach a relatively strong 4.4%. After losing roughly 9.1 million
jobs in 2020 and recovering about 6.2 million jobs in 2021, about 1.1 million jobs are added in the first quarter and
about 3.5 to 4 million by year end. The unemployment rate falls below 4% in the second quarter. Employment returns
to its pre-COVID peak in the fourth quarter of 2022. Thereafter, job growth slows gradually to about 0.3% per year
in 2024 before returning to its long run growth rate of 0.6%. Solid aggregate demand amid lingering supply
constraints led to inflation rising sharply in the fourth quarter of 2021. Headline and core PCE rose to their highest
rates in decades but are expected to peak in the first quarter of 2022 as supply constraints ease, with core PCE falling
to about 3.0% before mid-year. In response to higher prices, the Federal Reserve is expected to raise its policy rate
four times in 2022, beginning in March after its asset purchases end. Further, the Fed has signaled that it is prepared
to begin quantitative tightening by mid-year. Capital markets remain calm as spreads settle below 200 basis points
through the end of the forecast period.
Costar provides statistics related to the industrial market based on the following subtypes: Flex, Logistics and
Specialized.
KEY I ND I C A T OR S A T A GL A N C E
PRIOR QUARTER CURRENT QUARTER COMPARISON
Vacancy (%) 2.78% 2.48% decreased 30 Basis Points

Absorption (SF) 794,752 1,210,660 increased 415,908 SF
Quoted Rental Rates ($/SF/Year) $8.39 $8.62 increased $0.23 PSF
Inventory (SF) 164,520,837 165,254,636 increased 733,808 SF
Net Deliveries (SF) 543,748 733,799 increased 190,051 SF
Under Construction (SF) 9,589,966 9,361,661 decreased 228,305 SF
Overall Comparison Market remains strong.

MARKET ANALYSIS 25
S ALT L AKE C ITY I NDUSTRIAL M ARKET S TATISTICS

EXISTING NET NET UNDER QUOTED RATES
INVENTORY ABSORPTION COMPLETIONS CONST.
PERIOD (SF) VACANCY % (SF) (SF) (SF) ($/SF/YEAR)
2021 Q4 165,254,636 2.48% 1,210,660 733,799 9,361,661 $8.62
2021 Q3 164,520,837 2.78% 794,752 543,748 9,589,966 $8.39
2021 Q2 163,977,089 2.94% 3,441,544 2,356,595 7,664,496 $8.15
2021 Q1 161,620,494 3.66% 1,747,059 1,166,185 8,177,229 $7.90
2021 165,254,636 2.48% 7,194,015 4,800,327 9,361,661 $8.62
2020 160,454,309 4.04% 3,781,217 3,563,972 6,957,627 $7.70
2019 156,890,337 4.27% 3,173,120 4,479,263 4,440,656 $7.14
2018 152,411,074 3.54% 2,838,957 3,752,571 4,592,134 $6.72
2017 148,623,408 3.02% 5,031,181 2,446,021 3,242,190 $6.35
2016 146,070,536 4.84% 1,387,877 1,996,717 1,526,268 $5.99
2015 144,073,819 4.49% 3,011,758 2,335,857 2,052,353 $5.75
2014 141,737,962 5.04% -592,128 902,498 2,172,668 $5.50
2013 140,835,464 4.01% 2,908,459 1,292,605 826,001 $5.27
The Salt Lake City Industrial market ended the fourth quarter with a vacancy rate of 2.48%. The vacancy rate was
decreased over the previous quarter, with net absorption totaling 1,210,660 square feet in the fourth quarter.
Rental rates increased compared to the previous quarter, ending fourth quarter at $8.62. A total of 733,799 square
feet was delivered to the market, with 9,361,661 square feet still under construction at the end of the quarter.
A BS OR P T I ON
12-Month Absorption
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
-1,000,000
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Total Market
Net absorption for the overall Salt Lake City Industrial market was 1,210,660 square feet in fourth quarter 2021. That
compares to 794,752 square feet in third quarter 2021, 3,441,544 square feet in second quarter 2021, and 1,747,059
square feet in first quarter 2021.
The Flex Industrial subtype recorded net absorption of 150,907 square feet in the fourth quarter 2021, compared to
101,168 square feet in the third quarter 2021, 505,370 in the second quarter 2021, and 179,056 in the first quarter
2021.

MARKET ANALYSIS 26
The Logistics Industrial subtype recorded net absorption of 948,159 square feet in the fourth quarter 2021,
compared to 433,852 square feet in the third quarter 2021, 2,646,089 in the second quarter 2021, and 1,338,331 in
the first quarter 2021.
The Specialized Industrial subtype recorded net absorption of 111,594 square feet in the fourth quarter 2021,
compared to 259,732 square feet in the third quarter 2021, 290,085 in the second quarter 2021, and 229,672 in the
first quarter 2021.
V A C A NC Y
Vacancy Rates by Class

8%
7%
6%
5%
4%
3%
2%
1%
0%
2012 Q1
2012 Q3
2013 Q1
2013 Q3
2014 Q1
2014 Q3
2015 Q1
2015 Q3
2016 Q1
2016 Q3
2017 Q1
2017 Q3
2018 Q1
2018 Q3
2019 Q1
2019 Q3
2020 Q1
2020 Q3
2021 Q1
2021 Q3
Flex Logistics Specialized
Vacancy for the overall Salt Lake City Industrial market decreased to 2.48% in the fourth quarter 2021. That compares
to 2.78% in the third quarter 2021, 2.94% in the second quarter 2021, and 3.66% in the first quarter 2021.
Flex subtypes reported a vacancy rate of 2.39% at the end of the fourth quarter 2021, 3.15% at the end of the third
quarter 2021, 3.61% at the end of the second quarter 2021, and 3.71% at the end of the first quarter 2021.
Logistic subtypes reported a vacancy rate of 2.84% at the end of the fourth quarter 2021, 3.07% at the end of the
third quarter 2021, 2.98% at the end of the second quarter 2021, and 3.84% at the end of the first quarter 2021.
Specialized subtypes reported a vacancy rate of 1.18% at the end of the fourth quarter 2021, 1.45% at the end of
the third quarter 2021, 2.08% at the end of the second quarter 2021, and 2.75% at the end of the first quarter 2021.

MARKET ANALYSIS 27
R E N TA L R A TE S
Market Rent Growth (YOY)

14%
12%
10%
8%
6%
4%
2%
0%
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
United States Salt Lake City Flex Salt Lake City Logistics Salt Lake City Specialized
The rental rates shown below are per square foot per year on a NNN basis.
The average quoted asking rental rate for available Industrial space, all classes, was $8.62 psf at the end of the fourth
quarter 2021 in the Salt Lake City market area. This represented a 2.7% increase in quoted rental rates from the end
of the third quarter 2021, when rents were reported at $8.39.
The average quoted rate within the Flex sector was $10.97 at the end of the fourth quarter 2021, while Logistics
rates stood at $7.90, and Specialized rates at $9.42. At the end of the third quarter 2021, Flex rates were $10.81,
Logistics rates were $7.61, and Specialized rates were $9.30.
I NV E N TOR Y & C O N STR U C TI O N

During the fourth quarter 2021, a total of 733,799 square feet was completed in the Salt Lake City market area. This
compares to a total of 543,748 square feet that was completed in the third quarter 2021, a total of 2,356,595 square
feet completed in the second quarter 2021, and 1,166,185 square feet completed in the first quarter 2021.
There were 9,361,661 square feet of Industrial space under construction at the end of the fourth quarter 2021.
EXISTING INVENTORY NET DELIVERIES UNDER CONSTRUCTION

SUBTYPE (SF) (12 MONTHS) (SF)
Flex 19,855,361 693,900 327,369
Logistics 103,369,545 4,099,467 8,829,492
Specialized 41,496,230 6,960 204,800
Total 165,254,636 4,800,327 9,361,661

MARKET ANALYSIS 28
M A R KE T O U T L OO K
The Salt Lake City Industrial market ended the fourth quarter 2021 with a vacancy rate of 2.48%. The vacancy rate
decreased over the previous quarter, with net absorption totaling 1,210,660 square feet in the fourth quarter 2021.
Rental rates increased $0.23 PSF over the previous quarter and ended at $8.62. A total of 733,799 square feet was
delivered in the quarter, with 9,361,661 square feet still under construction at the end of the quarter.
Overall, the submarket appears to have solid fundamentals and the subject should enjoy adequate market
acceptance within the submarket.

COVID-19 & BROADER ECONOMIC OVERVIEW 29
COVID-19 & B ROA DER E CONOMIC O VERV IEW

COVID-19 was first identified in the United States in early March 2020 and caused upheaval in the US economy
through early 2021 when vaccines were rolled out in large scale. Since then, COVID-19 vaccines in the US have been
successful in reducing death and new case rates. Recent data indicates hospitalization rates for vaccinated adults
have remained low compared with hospitalizations for unvaccinated individuals. Americans are traveling once again,
and mobility continues to increase as consumers are spending. However, given continued rises in the inflation rate,
the consumer index has increased noticeably as they worry about future inflationary pressures. Investors have
expressed worries over upward pressure on interest rates although interest rates remain well below historical levels.
Strong economic growth has been experienced in 2021 and continues in the early part of 2022.
Notwithstanding the above, the recent events in Ukraine have pushed the price of oil-related products in the U.S. to
all-time highs. As a result, economists and many pundits are suggesting a slowdown in GDP is likely commencing in
the 2Q-2022 and beyond, with a national recession looming if the near-term forecasts come to pass. Real estate
activity prior to, during, and now has remained extremely robust. However, recent concerns have surfaced over the
negative impact of the foregoing events in many real estate sectors. The medium and long-term outlook by investors
may result in a more cautious approach to investing due to the foregoing impacts on the broader economy of
inflation, however a slowing of investment pace has yet to occur.
In late 2021, the Federal Reserve initially suggested modest increases in interest rates during 2022 and possibly
beyond. However, as inflation forecasts moved from transitory to permanent and became more robust in recent
months, the FED forecast a possible greater number of rate increases during 2022 and possibly beyond. Most
recently, The FED announced planned rate increases commencing in the Q2-2022 and during the year to curtail
inflationary trending. The number of rate increases and the magnitude of each remains unknown, as well as the
impact on commercial real estate. The FED is in a precarious spot because if they raise rates too fast this may cause
a recession and if they limit these rate increases, it likely will not reduce inflationary pressures.
As we monitor the real estate markets and the impact of COVID-19 and the Variants to date, it appears that the
pandemic is now largely in the rear-view mirror. Lockdown states have moved toward unmasking and other steps
to open their states and allow for a more robust economy to continue. Going forward, we will attempt to address
key indicators within the appropriate sections of our reports as necessary, mindful of the foregoing elements
impacting CRE. As always, we will remain vigilant in monitoring the national, state, and local economies as they
relate to commercial real estate and the subject property. Should conditions change and elements impacting the
markets and subject property become clearer, such that a full analysis may be warranted, we may have to adjust
our conclusions and forecasts.

HIGHEST AND BEST USE 30
H IGHEST AND B EST U SE

I NTRODUCTION
The highest and best use is the reasonable, probable, and legal use of vacant land or an improved property that is
physically possible, legally permissible, appropriately supported, financially feasible and that results in the highest
value. These criteria are often considered sequentially. The tests of legal permissibility and physical possibility must
be applied before the remaining tests of financial feasibility and maximal productivity. A financially feasible use is
precluded if it is legally prohibited or physically impossible. If a reasonable possibility exists that one of the prior,
unacceptable conditions can be changed, is it appropriate to proceed with the analysis with such an assumption.
H IGHEST AND B EST U SE C RITERIA

The site’s highest and best use is analyzed both as vacant and as improved, and if improvements are proposed then
an as proposed analysis is required. In all cases, the property’s highest and best use must meet four criteria: (1)
legally permissible; (2) physically possible; (3) financially feasible; and (4) maximally productive.
H IGHEST AND B EST U SE A S VACANT

L E G A L L Y P E R M I S SI B LE
Legal restrictions include deed restrictions, CC&R's, lease encumbrances, zoning requirements, building codes,
historic district controls and environmental regulations, and were previously analyzed to determine legally permitted
uses. Legally, the subject is zoned M-1. Permitted uses include Office, warehousing, industrial storage, light
manufacturing auto repair, shipping and storage. Legal access may be an issue, for the purposes of this appraisal we
have analyzed the property both with and without access. No other legal restrictions have been identified that would
limit development of the property beyond the development standards stipulated by municipal code.
P H Y S IC A L LY P O SS IB LE
Size, shape, topography, soil condition, availability of utilities, transportation access, surrounding uses, and
locational characteristics were previously analyzed to determine which legal land uses are physically possible and
which are best to conform to the physical and locational aspects of the site and its setting with respect to the
neighborhood and community. There are also utility easements that prevent construction on the petroleum
pipeline and typically under power line easements. Overall, the physical site attributes result in adequate utility, and
the property could be developed with a variety of legally-conforming uses. Given the surrounding uses and location,
the site is best suited for industrial use, and is well suited for rail car and container storage, but not well shaped for
large warehouses.
F INA NC IA L LY F E A SI BLE
Financially Feasible Financial feasibility is determined by the relationship of supply and demand for the legally
probable land uses versus the cost to create them. The market analysis section reveals that uses in the subject's
market are generally stabilized. Recent and planned warehouse and shipping developments in the market area serve
as direct evidence that new shipping related development is financially feasible. Comparisons of rental rates,
operating expenses and construction costs indicate the property is capable of providing an adequate return on
investment to warrant new industrial development in the current market. Therefore, industrial use is considered
financially feasible.

HIGHEST AND BEST USE 31
M A X I M A L LY P R OD U C TI V E
The final test of highest and best use of the site as vacant is that the use be maximally productive, yielding the highest
return to the land. Industrial development on the subject's site or assemblage is the maximally productive use of the
subject as vacant.

VALUATION PROCESS 32
VA LUATION P ROCESS
Valuation in the appraisal process generally involves three techniques, including the Cost Approach, Sales
Comparison Approach and the Income Capitalization Approach.
These three valuation methods are defined in the following table:
VALUATION METHODS DEFINITION

Cost Approach In this approach, value is based on adding the contributing value of any
improvements (after deductions for accrued depreciation) to the value of the
land as if it were vacant based on its highest and best use. If the interest
appraised is other than fee simple, additional adjustments may be necessary
for non-realty interest and/or the impact of existing leases or contracts.
Sales Comparison Approach In this approach, recent sales of similar properties in the marketplace are
compared directly to the subject property. This comparison is typically
accomplished by extracting “units of comparison”, for example, price per
square foot, and then analyzing these units of comparison for differences
between each comparable and the subject. The reliability of an indication
found by this method depends on the quality of the comparable data found in
the marketplace.
Income Capitalization Approach In this approach, a property is viewed through the eyes of a typical investor,
whose primary objective is to earn a profit on the investment principally
through the receipt of expected income generated from operations and the
ultimate resale of the property at the end of a holding period.
VALUATION METHODS UTILIZED
This appraisal employs only the Sales Comparison Approach. Based on our analysis and knowledge of the subject
property type and relevant investor profiles, it is our opinion that this approach would be considered necessary
and applicable for market participants. Since no improvements exist on site, the Cost Approach is not relevant.
The property generates no income and is not typically marketed, purchased or sold on the basis of anticipated
lease income; thus, the Income Capitalization Approach was precluded.
The valuation process is concluded by analyzing each approach to value used in the appraisal. When more than
one approach is used, each approach is judged based on its applicability, reliability, and the quantity and quality
of its data. A final value opinion is chosen that either corresponds to one of the approaches to value, or is a
correlation of all the approaches used in the appraisal.

LAND VALUATION 33
L A ND VA LUATION
M ETHODOLOGY
The Sales Comparison Approach is employed to develop an opinion of land value. In the Sales Comparison Approach,
we developed an opinion of value by comparing similar, recently sold sites in the surrounding or competing area to
the subject property. To determine the value of the subject property, these comparable sales and/or listings are
then evaluated and adjusted based on their differences when compared to the subject property. Inherent in this
approach is the principle of substitution, which states that when a property is replaceable in the market, its value
tends to be set at the cost of acquiring an equally desirable substitute property, assuming that no costly delay is
encountered in making the substitution.
The Sales Comparison Approach to value requires the following sequential steps:
Unit of Comparison A unit of comparison (i.e. price per square foot, price per acre, price per
dwelling unit) must be selected for comparable analysis of the sales and
the subject. The selected unit of comparison must be consistent with
market behavior.
Search for Sales Research must be done to locate comparable sales, listings and
contracts of sites that are similar to the subject. Similarities may include
size, utility, zoning, physical characteristics, location and the date of the
sale.
Confirmation All sales must be confirmed to verify that the data used is accurate, and
the sales, listings or contracts represent arm’s-length transactions.
Comparison Each of the sales that is chosen for this valuation is considered generally
similar to the subject. Therefore, each difference between the
comparables and the subject must be identified, and then adjusted for
the various differences. All adjustments are made to the comparables as
they relate to the subject property.
Reconciliation Once the comparables have been adjusted, a value must be concluded
based on the indications produced from the analysis of the
comparables.
U NITS OF C OMPARISON
Based on market behavior observed, price per square foot or price per acre are common units of comparison. For
this analysis price per square foot is used.
C OMPARABLE L AND S ALES

We reviewed sales of industrial properties in the general neighborhood of the subject. On the following pages, we
present a summary of the properties that we compared to the subject property, a map showing their locations, and
the adjustment process. The property is appraised first with adequate access, followed by an analysis without access.

LAND VALUATION 34
C OMPARABLE L AND S ALES M AP

LAND VALUATION 35
C OMPARABLE L AND S ALES S UMMA RY

SUMMARY OF LAND SALES
Date of Transaction Site Size Site Size Price per Acre Price per SF Road
No. Property / Location Sale Status (Net Acres) (Net SF) Zoning Sale Price (Net) (Net) Frontage Utilities
Va ca nt Indus tri a l /Commerci a l La nd Mountai n

LI, Li ght
1 5760 Wes t 3500 South Aug-21 Cl os ed 5.35 233,046 $1,650,000 $308,411 $7.08 Vi ew Al l a va i l a bl e to s i te.
Indus tri a l
Wes t Va l l ey Ci ty, UT Corri dor
Typi ca l util i ties a nd

Va ca nt Indus tri a l La nd muni ci pa l s ervi ces
2 8000 Wes t 4100 South Jul -21 Cl os ed 32.76 1,427,026 M-1, $6,950,000 $212,149 $4.87 --- a va i l a bl e to s i te. However,
Ma gna , UT s torm dra i n mus t be
extended
Va ca nt Indus tri a l La nd
M-2,
3 7811 Wes t 2100 South Apr-21 Cl os ed 10.02 436,471 $3,273,354 $326,682 $7.50 2100 South Al l a va i l a bl e to s i te.
Indus tri a l
Wes t Va l l ey Ci ty, UT
Va ca nt Indus tri a l La nd 2100 South
4 6941 Wes t 2100 South Aug-20 Cl os ed 24.80 1,080,288 M, Indus tri a l $6,481,728 $261,360 $6.00 frontage Al l a va i l a bl e to s i te.
Wes t Va l l ey Ci ty, UT roa d
5 6650 Wes t 2100 South Ma r-20 Cl os ed 6.72 292,723 M, $2,198,038 $327,089 $7.51 --- Al l a va i l a bl e to s i te.
Wes t Va l l ey Ci ty, UT
M-1, Onl y el ectri c i s a va i l a bl e to
6 1450 North 8800 Wes t Nov-17 Cl os ed 72.63 3,163,686 $3,163,686 $43,560 $1.00 8800 Wes t
Ma nufa cturi ng the s i te
Sa l t La ke Ci ty, UT
Ra i l Swi tchi ng Fa ci l i ty
M-1,
Subj. 6 North 7200 Wes t — — 13.77 600,000 — — — --- ---
Indus tri a l
Sa l t La ke Ci ty, Utah
COMMENTS
1 - Thi s i s a rea r pa rcel of a n exi s ti ng commerci a l devel opment a nd s tora ge fa ci l i ty.
2 - Thi s s a l e wa s reported by Cos ta r, but the s a l e pri ce wa s not confi rmed.
3 - Negoti a ti ons bega n i n ea rl y 2020, went under contra ct Ja nua ry 2021, Cl os ed i n Apri l 2021.
4 - Agent i ndi ca ted tha t the s a l e pri ce coul d not be di s cl os ed, but tha t i t wa s a ctua l l y hi gher tha n the
a s ki ng pri ce. (As ki ng pri ce i s s hown)
5 - Al l neces s a ry fi l l ha d been brought to the s i te pri or to the s a l e. Buyer pl a nni ng to bui l d a 100,000
s qua re foot i ndus tri a l bui l di ng on the s i te.
6 - County records i ndi ca te Tena nt i n Common owners hi p.

LAND VALUATION 36
C OMPARABLE L AND S ALES A DJUSTMENT G RID – W ITH A CCESS

COMPARABLE LAND SALE ADJUSTMENTS
Subject Comp 1 Comp 2 Comp 3 Comp 4 Comp 5 Comp 6
Property / Location I-80 Si de ra i l Va ca nt Va ca nt Indus tri a l Va ca nt Indus tri a l Va ca nt Indus tri a l Va ca nt Indus tri a l Va ca nt Indus tri a l
property Indus tri a l /Commer La nd La nd La nd La nd La nd
6 South 5600 Wes t ci a l La nd 8000 Wes t 4100 7811 Wes t 2100 6941 Wes t 2100 6650 Wes t 2100 1450 North 8800
Sa l t La ke Ci ty, Uta h 5760 Wes t 3500 South South South South Wes t
South Ma gna , UT Wes t Va l l ey Ci ty, Wes t Va l l ey Ci ty, Wes t Va l l ey Ci ty, Sa l t La ke Ci ty, UT
Transaction Status ----- Cl os ed Cl os ed Cl os ed Cl os ed Cl os ed Cl os ed
Date of Sale ----- Aug-21 Jul -21 Apr-21 Aug-20 Ma r-20 Nov-17
Site Size (Acres) 36.73 5.35 32.76 10.02 24.80 6.72 72.63
Site Size (SF) 1,600,000 233,046 1,427,026 436,471 1,080,288 292,723 3,163,686
Buildable SF 0 --- --- --- --- --- ---
Sale Price ----- $1,650,000 $6,950,000 $3,273,354 $6,481,728 $2,198,038 $3,163,686
Zoning M-1 LI M-1 M-2 M M M-1
Property Use Indus tri a l Indus tri a l Indus tri a l Indus tri a l Indus tri a l Indus tri a l Indus tri a l
Unadjusted Price per SF ----- $7.08 $4.87 $7.50 $6.00 $7.51 $1.00
Transactional Adjustments
Property Rights Conveyed Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple
Adjus tment 0% 0% 0% 0% 0% 0%
Subtotal $7.08 $4.87 $7.50 $6.00 $7.51 $1.00
Financing Terms
Adjus tment 0% 0% 0% 0% 0% 0%
Subtotal $7.08 $4.87 $7.50 $6.00 $7.51 $1.00
Conditions of Sale
Adjus tment 0% 0% 0% 0% 0% 0%
Subtotal $7.08 $4.87 $7.50 $6.00 $7.51 $1.00
Expenditures Immed After Sale
Adjus tment 0% 0% 0% 12% 0% 0%
Subtotal $7.08 $4.87 $7.50 $6.74 $7.51 $1.00
Market Conditions Apr-22 Aug-21 Jul-21 Apr-21 Aug-20 Mar-20 Nov-17
Adjus tment 10% 11% 14% 20% 25% 60%
Subtotal $7.79 $5.41 $8.55 $8.09 $9.39 $1.60
Total Transactional Adjustments 10% 11% 14% 35% 25% 60%
Adjusted Price per SF $7.79 $5.41 $8.55 $8.09 $9.39 $1.60
Property Adjustments
Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple
Location 0% 10% 0% 0% 0% 40%
1,600,000 233,046 1,427,026 436,471 1,080,288 292,723 3,163,686
Net Site Size (SF) -10% 0% -10% 0% -10% 0%
--- --- --- --- --- ---
Shape / Configuration -30% -30% -30% -35% -35% -15%
--- --- --- --- --- ---
Access / Visibility -5% -5% -5% -5% -5% 10%
Typical utilities and municipal services available to site.AllHowever,
availablestorm
to site.
drain must be extended All available to site. All available to site. All available
Only electric
to site. is available to the site
Utilities / Infrastructure -5% -5% -5% -5% -5% 0%
Varying 0 Generally level Generally level Slightly sloping Generally level Generally level
Topography 0% 0% 0% 0% 0% 0%
multiple, --- --- --- --- --- ---
Easements / Encumbrances -10% -10% -10% -10% -10% -5%
Total Property Adjustments -60% -40% -60% -55% -65% 30%
Indication for Subject per SF $3.12 $3.24 $3.42 $3.64 $3.29 $2.08
A DJUSTMENT P ROCES S
The sales that we have utilized represent the best available information that could be compared to the subject
property. The major elements of comparison for an analysis of this type include the property rights conveyed, the
financial terms incorporated into a particular transaction, the conditions or motivations surrounding the sale,
changes in market conditions since the sale, the location of the real estate, its physical traits, and the economic
characteristics of the property.

LAND VALUATION 37
D ISCUSSION OF A DJUSTMENTS
T RANSACTIONAL A DJUSTMENTS
P R O P E R T Y R I GH TS C ONV E YE D
This adjustment accounts for any impact that the property rights transferred to the buyer may have on sale price.
For leased fee properties, the length of leases in place and the relationship of market to contract rent could impact
value. Some properties may have stronger appeal to an owner-user or an investor, resulting in a premium or discount
associated with fee simple property rights. If a buyer acquires the leasehold interest in a comparable, then an
adjustment may be necessary that accounts for the impact to the of ground rent and/or risk associated with the
expiration of the ground lease to the sale price.
All of the comparables were considered similar to the subject and no adjustments were required for this category.
F INA NC I N G T E R M S
This category accounts for differences in financing terms associated with the transaction. Financing arrangements
that may require an adjustment include mortgage assumptions (at favorable interest rates), seller buydowns,
installment sales, wrap-around loans, or any other atypical financing arrangements that do not represent cash-
equivalent terms.
T E R M S /C O ND IT IO N S OF S A LE
Adjustments for conditions of sale typically reflect various motivations of the buyer and/or seller. This may include
such factors as seller distress (short sale, REO, auction) or buyer motivation (assemblage, etc.). In some situations,
the conditions of sale may significantly affect transaction prices. Properties that are listed for sale may require
adjustments herein to account for any disparity between asking prices and the achievable sale price anticipated.
E X P E ND ITU R E S I M M E D IA TE L Y A FTE R S A LE
In order to arrive at the effective sale price, the actual sale price of each comparable is adjusted to account for any
expenditures planned by the buyer immediately after sale, such as capital expenditures, cost to cure deferred
maintenance, or lease-up costs.
Comparable No. 4 was judged inferior to the subject and received an upward adjustment of 12%.
M A R KE T C O ND IT IO N S
This adjustment category accounts for differences in economic conditions between the effective date of appraisal
and the transaction date of the comparable, such as may be caused by changing supply and demand factors, rental
rates, vacancy rates and/or capitalization rates. For the most part, industrial property in the Salt Lake Market has
increased at a rather steady rate until late 2020, and then at a much stronger rate of approximately 15% through
2021.
Comparable No. 1 was judged inferior to the subject and received an upward adjustment of 10%. Comparable No. 2
was judged inferior to the subject and received an upward adjustment of 11%. Comparable No. 3 was judged inferior
to the subject and received an upward adjustment of 14%. Comparable No. 4 was judged inferior to the subject and

LAND VALUATION 38
received an upward adjustment of 20%. Comparable No. 5 was judged inferior to the subject and received an upward
adjustment of 25%. Comparable No. 6 was judged inferior to the subject and received an upward adjustment of 60%.
SUMMARY OF T R A N SA C T IO NA L A D JU ST M E N TS
Comparable No. 1 was judged inferior to the subject and received an upward adjustment of 10%. Comparable No. 2
was judged inferior to the subject and received an upward adjustment of 11%. Comparable No. 3 was judged inferior
to the subject and received an upward adjustment of 14%. Comparable No. 4 was judged inferior to the subject and
received an upward adjustment of 35%. Comparable No. 5 was judged inferior to the subject and received an upward
adjustment of 25%. Comparable No. 6 was judged inferior to the subject and received an upward adjustment of 60%.
P ROPERTY A DJUSTMENTS
L O C A TI ON
The appeal of a property’s location to users of and/or investors in a particular property type can influence value
significantly. This factor broadly considers the impact of demographics, geographical attributes, access to
transportation networks and local land use trends on pricing. Comparisons of location can often be derived, or even
quantified, by examining rent, vacancy, capitalization rate, and land value trends in the subject and directly
competitive areas.
Comparable No. 2 was judged inferior to the subject because it is located in a blast zone which specifies additional
building safety measures and limits the amount of south facing windows. An upward adjustment of 10% is applied.
Comparable No. 6 was judged inferior to the subject, being located nearly five miles northwest and the 5600 West
interchange with I-80. It is also far from other industrial properties, next to a new state prison. An upward adjustment
of 40% is applied.
N E T S I TE S IZ E (SF)
Size and pricing typically have an inverse relationship, whereby larger sites tend to achieve lower pricing on a per-
square-foot basis. This is attributable to economies of scale, as well as the narrower pool of prospective buyers for
a larger property.
Sales #1, #3, and #5 are much smaller than the subject which warrants a downward adjustment for these three
comparables. The remaining comparables are considered similar to the subject and no adjustments were required.
S H A P E / C ON FI GU R A TI O N
The configuration, shape, dimensions and depth of a site determine its developability and overall utility. These
factors can impact development costs, usable area of the site, and thereby, achievable pricing. The subject site is
comprised of two parcels in a long and thin shape.
Comparable No. 1 was regarded superior to the subject and received a downward adjustment of 30%. Comparable
No. 2 was regarded superior to the subject and received a downward adjustment of 30%. Comparable No. 3 was
regarded superior to the subject and received a downward adjustment of 30%. Comparable No. 4 was regarded
superior to the subject and received a downward adjustment of 35%. Comparable No. 5 was regarded superior to
the subject and received a downward adjustment of 35%. Comparable No. 6 was regarded superior to the subject
and received a downward adjustment of 15%.

LAND VALUATION 39
A C C E S S / V IS IB I LI TY
Adjustments for access/visibility allow for differences in accessibility to adjacent/nearby roadways, railways and/or
waterways. Sites with visibility and exposure to heavier travelled thoroughfares normally command a premium over
similar sites along tertiary thoroughfares.
Sales #1, #2, #3, #4, and #5 are all located along frontage roads with good access and exposure. This is superior to
the subject which must be access from a frontage road on the other side of the interstate through access under the
interstate. Small downward adjustment is applied to each comparable #1 through #5. Sale #6 is inferior to the subject
being located away from the interstate. Upward adjustment is applied.
U T IL IT IE S / I N FR A S TR U C TU R E
Infrastructure adjustments may reflect differences in utility availability/capacity, developmental plans or other
outside influences.
There are utilities in the area of the subject. However water and sewer are located in the frontage road along the
north side of Interstate 80. The distance is approximately 500 feet north of the subject within the same overpass
currently occupied by train easement and multiple other easements. This is inferior to the other comparables and a
downward adjustment is made to Sales #1 through #5. Sale #6 is similar to the subject; no adjustment is made.
T OP O GR A P H Y
Topography characteristics can influence pricing, as sites with more radical elevation changes typically increase site
preparation/development costs when compared to a level site.
E A SE M E N TS / E NC U M BR A NC E S
This category may be used to illustrate differences in additional legal requirements (outside of zoning) such as
reciprocal parking and/or access agreements, deed restrictions, easements, CCR's and other encumbrances. In this
case, most of the encumbrances have been delt with in selecting a usable area. There are two encumbrances within
the usable area that must be addressed. (1) there is a three-acre pond towards the western quarter of the property
that impacts the general layout of roads or driveways and (2) the existing train tracks encumber the property in a
way that prevents ingress and egress to the western portion of the property when a train is present. Downward
adjustment is applied to each comparable.
SUMMARY OF P R OP E R TY A D JU ST M E N T S
Comparable No. 1 was regarded superior to the subject and received a downward adjustment of 60%. Comparable
No. 2 was regarded superior to the subject and received a downward adjustment of 40%. Comparable No. 3 was
regarded superior to the subject and received a downward adjustment of 60%. Comparable No. 4 was regarded
superior to the subject and received a downward adjustment of 55%. Comparable No. 5 was regarded superior to
the subject and received a downward adjustment of 65%. Comparable No. 6 was judged inferior to the subject and
received an upward adjustment of 30%.

LAND VALUATION 40
L AND VALUE C ONCLUSION

SALES SUMMARY UNADJUSTED ADJUSTED
Minimum $1.00 $2.08
Ma ximum $7.51 $3.64
Avera ge $5.66 $3.13
Media n $6.54 $3.26
After adjustments, the comparable land sales reflect a range from $2.08 to $3.64 per square foot, with an average
of $3.13 per square foot. All the comparables ae given consideration however, Sale #6 is well below the others and
is given less weight as an outlier. The average of Sales #1 through #5 is $3.34 per square foot. Based on the data
available and the analyses presented, a value between the two averages is appropriate, concluded at $3.25 per
usable square foot, calculated in the following table.
LAND VALUE CONCLUSION - WITH ACCESS

Indica ted Va lue per SF $3.25
La nd Area (SF) x 1,132,560
Indicated Value $3,680,820
Rounded to nearest $10,000 $3,680,000
Per SF of total parcel $2.06
L AND V ALUE OF S UB JECT A SSUMING N O L EGAL A CCESS

We have also been asked to value the subject as if legal access is not available.
In a scenario where legal access does not exist the value of the subject is greatly diminished. Typically highest and
best use changes to assemblage with a neighboring property. If there are many potential neighbors as possible
suitors a small discount to the value of a fully utile property could be expected. However, when there is only one
property to assemble to a large discount is more likely. To determine an appropriate discount for inutile parcels,
several sales with limited access or other functional issues, are analyzed.
We are aware of a rear parcel of land with limited access, located at 6441 South Holladay Boulevard, which sold for
$8.99 per square foot. The seller had attempted to develop the parcel separately, but access was insufficient. The
tract was purchased by the adjoining property owner who was able to provide access to the tract and subsequently
developed a Class “A” office building on the site. This sale is contrasted with a nearby tract of land with full access
located at 6512 South 3000 East, which sold for $15.75 per square foot. After accounting for the superior location
of the second sale, as it has exposure to 3000 East, and other minor differences, the two sales show a 35 percent
diminution factor to the first sale for its lack of accessibility.
We are also aware of two adjacent parcels that sold located at 7294 West 3500 South in Magna, Salt Lake County.
One parcel has access from and frontage on 3500 South while the rear parcel was landlocked and does not have
frontage along any road. The parcel having frontage was bought for $8.76 per square foot, while the landlocked
parcel was purchased for $2.04 per square foot. Both parcels were similarly zoned. The parcel having frontage was
38,813 square feet in size, while the landlocked parcel was 41,667 square feet. The two parcels were purchased at
the same time. Pairing these sales shows a discount factor of 77 percent for the landlocked nature of the parcel
relative to the parcel which had adequate frontage and access.

LAND VALUATION 41
Taylorsville City sold 22,284 square feet of an abandoned portion of the Taylorsville Irrigation Canal located near the
NEC of 6200 South and Bangerter Highway to the abutting property owner for $3.10 per square foot. Market sales
indicated value for fully functional sites in the area at the time to be in the $4.65 to $10.00 range. This represents a
33 to 70 percent discount off market prices. This 22,284 square foot parcel was long and narrow and had no
independent utility. There were other options for assemblage, but this sale represented highest and best use. The
buyer was also given $0.31 per square foot for fill and compaction of the canal trough. This parcel was not
landlocked, but it had a similar lack of utility characteristic of landlocked parcels. That is, without assemblage, it had
little if any economic value.
Lastly, a 1.451-acre vacated roadway (Little Cottonwood Creek Road) at approximately 9485 South was sold to the
adjoining property owner. This is commercial land that had a fairly steep slope. The sales price was $0.41 per square
foot. Given that the average land price in the area at the time was approximately $8.50 per square foot, a 95 percent
value diminution is indicated, relating to both the steep slope and the otherwise independent inutility.
The foregoing case studies indicate a range between 39 and 95 percent for landlocked and inutile parcels.
In the subject’s case, there are at least two demand drivers of value even if the property lacks access. (1) Assemblage
with the rail property drives value due to high demand and low supply of suitable industrial property on which to
expand the rail yard, (2) Mountain View corridor is slated to intersect with Interstate 80 at the subject in the next 3
to 10 years. While engineering for the interchange has not been released, there is speculation that UDOT will acquire
a portion of the subject or at least bring access to the subject with a frontage road. These two factors alone suggest
a discount towards the low end of the range, concluded at 40 percent. Applied to the $3.25 per square foot
conclusion made previously. Land value without access is concluded at $1.95 per square foot.
LAND VALUE CONCLUSION - WITHOUT ACCESS

Indi ca ted Va l ue per SF $1.95
La nd Area (SF) x 1,132,560
Indicated Value $2,208,492
Rounded to nearest $10,000 $2,210,000
Per SF of total parcel $1.24
F INAL O PINION ( S ) OF VALUE

Based on the inspection of the property and the investigation and the analysis undertaken, we have developed the
following value opinion(s).
MARKET VALUE CONCLUSION(S)

Appraisal Premise Interest Appraised Date of Value Value Conclusion
Market Value - As Is assuming adequate access Fee Si mpl e Apri l 22, 2022 $3,680,000
Market Value - As Is - Without access Fee Si mpl e Apri l 22, 2022 $2,210,000
M ARKETING T IME AND E XPOSURE T IME

The sales used in the Sales Comparison Approach were formally marketed and purchased after being exposed to the
market. The subject however, because of location and limited access has a limited number of potential buyers, with
the most likely buyer being a party that controls access or could benefit from rail location. Corporate purchases take
time, and we believe that the property could sell within 12 months at the appraised market value. The exposure
time is also estimated at within 12 months.

CERTIFICATION 42
C ERTIFICATION
We certify tha t, to the bes t of our knowl edge a nd bel i ef:

1. The s tatements of fa ct contai ned i n thi s report a re true a nd correct.
2. The reported a na l ys es , opi ni ons , a nd concl us i ons a re l i mi ted onl y by the reported a s s umptions
a nd l i mi ting condi tions a nd a re our pers ona l , i mpa rtia l , a nd unbi a s ed profes s i ona l a na l ys es ,
opi ni ons , a nd concl us i ons .
3. We ha ve no pres ent or pros pective i nteres t i n the property tha t i s the s ubject of thi s report a nd
no pers ona l i nteres t wi th res pect to the pa rties i nvol ved wi th thi s a s s i gnment.
4. We ha ve no bi a s wi th res pect to the property tha t i s the s ubject of thi s report or to the pa rties
i nvol ved wi th thi s a s s i gnment.
5. Our enga gement i n thi s a s s i gnment wa s not contingent upon devel opi ng or reporting
predetermi ned res ul ts .
6. Our compens a tion for compl eting thi s a s s i gnment i s not contingent upon the devel opment or
reporting of a predetermi ned va l ue or di rection i n va l ue tha t fa vors the ca us e of the cl i ent, the
a mount of the va l ue opi ni on, the a tta i nment of a s tipul a ted res ul t, or the occurrence of a
s ubs equent event di rectly rel a ted to the i ntended us e of thi s a ppra i s a l .
7. Thi s a ppra i s a l a s s i gnment wa s not ba s ed upon a reques ted mi ni mum va l ua tion, a s peci fi c
va l ua tion, or the a pprova l of a l oa n.
8. Our a na l ys es , opi ni ons , a nd concl us i ons were devel oped, a nd thi s report ha s been prepa red, i n
conformi ty wi th the Uni form Standa rds of Profes s i ona l Appra i s a l Pra ctice, a s wel l a s the
requi rements of the s tate of Utah.
9. The reported a na l ys es , opi ni ons , a nd Va l ue Indi ca tions were devel oped, a nd thi s report ha s
been prepa red, i n conformi ty wi th the requi rements of the Code of Profes s i ona l Ethi cs a nd the
Standa rds of Profes s i ona l Pra ctice of the Appra i s a l Ins titute.
10. The us e of thi s report i s s ubject to the requi rements of the Appra i s a l Ins titute rel a ting to
revi ew by i ts dul y a uthori zed repres entatives .
11. As of the da te of thi s report, Da rrel Mos s , MAI ha s a nd Corey Cook, MAI ha s compl eted the
continui ng educa tion progra m for Des i gna ted Members of the Appra i s a l Ins titute.
12. Da rrel Mos s , MAI ha s a nd Corey Cook, MAI ha s not ma de a pers ona l i ns pection of the property
tha t i s the s ubject of thi s report.
13. No one provi ded s i gni fi ca nt rea l property a ppra i s a l a s s i s tance to the pers on s i gni ng thi s
certifi ca tion.
14. Da rrel Mos s , MAI ha s not a nd Corey Cook, MAI ha s not provi ded s ervi ces , a s a n a ppra i s er or i n
a ny other ca pa ci ty, rega rdi ng the property tha t i s the s ubject of thi s report wi thi n the three-yea r
peri od i mmedi a tel y precedi ng the a greement to perform thi s a s s i gnment.
Da rrel Mos s , MAI Corey Cook, MAI

Uta h Certi fi ed Genera l Appra i s er Uta h Certi fi ed Genera l Appra i s er
Li cens e #: 6272290-CG00 Li cens e #: 6404407-CG00
801-321-0083 801-321-0059
dmos s @bbgres .com ccook@bbgres .com

STANDARD ASSUMPTIONS AND LIMITING CONDITIONS 43
S TANDARD A SSUMPTIONS AND L IMITING C ONDITIONS

This appraisal report has been made with the following general assumptions:
1) Notwithstanding that Appraiser may comment on, analyze or assume certain conditions in the appraisal,
BBG, Inc. shall have no monetary liability or responsibility for alleged claims or damages pertaining to: (a)
title defects, liens or encumbrances affecting the property; (b) the property’s compliance with local, state
or federal zoning, planning, building, disability access and environmental laws, regulations and standards;
(c) building permits and planning approvals for improvements on the property; (d) structural or mechanical
soundness or safety; (e) contamination, mold, pollution, storage tanks, animal infestations or other
hazardous conditions affecting the property; and (f) other conditions and matters for which licensed real
estate appraisers are not customarily deemed to have professional expertise. Accordingly:
a) The Appraiser has not conducted any engineering or architectural surveys in connection with this
appraisal assignment. Information reported pertaining to dimensions, sizes, and areas is either based
on measurements taken by the Appraiser or the Appraiser’s staff or was obtained or taken from
referenced sources and is considered reliable. The Appraiser and BBG, Inc. shall not be monetarily liable
or responsible for or assume the costs of preparation or arrangement of geotechnical engineering,
architectural, or other types of studies, surveys, or inspections that require the expertise of a qualified
professional.
b) Unless otherwise stated in the report, only the real property is considered, so no consideration is given
to the value of personal property or equipment located on the premises or the costs of moving or
relocating such personal property or equipment. Further, unless otherwise stated, it is assumed that
there are no subsurface oil, gas or other mineral deposits or subsurface rights of value involved in this
appraisal, whether they are gas, liquid, or solid. Further, unless otherwise stated, it is assumed that
there are no rights associated with extraction or exploration of such elements considered. Unless
otherwise stated it is also assumed that there are no air or development rights of value that may be
transferred.
c) Any legal description or plats reported in the appraisal are assumed to be accurate. Any sketches,
surveys, plats, photographs, drawings or other exhibits are included only to assist the intended user to
better understand and visualize the subject property, the environs, and the competitive data. BBG, Inc.
has made no survey of the property and assumes no monetary liability or responsibility in connection
with such matters.
d) Title is assumed to be good and marketable, and in fee simple, unless otherwise stated in the report.
The property is considered to be free and clear of existing liens, easements, restrictions, and
encumbrances, except as stated. Further, BBG, Inc. assumes there are no private deed restrictions
affecting the property which would limit the use of the subject property in any way.
e) The appraisal report 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 appraisal report;
additionally, that all applicable zoning, building, and use regulations and restrictions of all types have
been complied with unless otherwise stated in the appraisal report. Further, it is assumed that all
required licenses, consents, permits, or other legislative or administrative authority, local, state,
federal and/or private entity or organization have been or can be obtained or renewed for any use
considered in the value opinion. Moreover, unless otherwise stated herein, it is assumed that there are
no encroachments or violations of any zoning or other regulations affecting the subject property, that
the utilization of the land and improvements is within the boundaries or property lines of the property
described, and that there are no trespasses or encroachments.
f) The American Disabilities Act (ADA) became effective January 26, 1992. The Appraiser has not made a
specific compliance survey or analysis of the property to determine whether or not it is in conformity

with the various detailed requirements of ADA. It is possible that a compliance survey of the property
and a detailed analysis of the requirements of the ADA would 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
impact upon the value of the property. Since the Appraiser has no direct evidence relating to this issue,
possible noncompliance with the requirements of ADA was not considered in estimating the value of
the property.
g) No monetary liability or responsibility is assumed for conformity to specific governmental
requirements, such as fire, building, safety, earthquake, or occupancy codes, except where specific
professional or governmental inspections have been completed and reported in the appraisal report.
h) It is assumed the subject property is not adversely affected by the potential of floods; unless otherwise
stated herein. Further, it is assumed all water and sewer facilities (existing and proposed) are or will be
in good working order and are or will be of sufficient size to adequately serve any proposed buildings.
i) Unless otherwise stated within the appraisal report, the depiction of the physical condition of the
improvements described therein is based on visual inspection. No monetary liability or responsibility is
assumed for (a) the soundness of structural members since no engineering tests were conducted; (b)
the condition of mechanical equipment, plumbing, or electrical components, as complete tests were
not made; and (c) hidden, unapparent or masked property conditions or characteristics that were not
clearly apparent during the Appraiser’s inspection.
j) If building improvements are present on the site, it is assumed that no significant evidence of termite
damage or infestation was observed during physical inspection, unless so stated in the appraisal report.
Further, unless so stated in the appraisal report, no termite inspection report was available. No
monetary liability or responsibility is assumed for hidden damages or infestation.
k) Unless subsoil opinions based upon engineering core borings were furnished, it is assumed there are
no subsoil defects present, which would impair development of the land to its maximum permitted use
or would render it more or less valuable. No monetary liability or responsibility is assumed for such
conditions or for engineering which may be required to discover them.
l) BBG, Inc. is not an expert in determining the presence or absence of hazardous substances, defined as
all hazardous or toxic materials, wastes, pollutants or contaminants (including, but not limited to,
asbestos, PCB, UFFI, or other raw materials or chemicals) used in construction or otherwise present on
the property. BBG, Inc. assumes no monetary liability or responsibility for the studies or analyses which
would be required to determine the presence or absence of such substances or for loss as a result of
the presence of such substances. Appraiser is not qualified to detect such substances. The Client is
urged to retain an expert in this field; however, Client retains such expert at Client’s own discretion,
and any costs and/or expenses associated with such retention are the responsibility of Client.
m) BBG, Inc. is not an expert in determining the habitat for protected or endangered species, including,
but not limited to, animal or plant life (such as bald eagles, gophers, tortoises, etc.) that may be present
on the property. BBG, Inc. assumes no monetary liability or responsibility for the studies or analyses
which would be required to determine the presence or absence of such species or for loss as a result
of the presence of such species. The Appraiser hereby reserves the right to alter, amend, revise, or
rescind any of the value opinions contained within the appraisal repot based upon any subsequent
endangered species impact studies, research, and investigation that may be provided. However, it is
assumed that no environmental impact studies were either requested or made in conjunction with this
analysis, unless otherwise stated within the appraisal report.
2) If the Client instructions to the Appraiser were to inspect only the exterior of the improvements in the
appraisal process, the physical attributes of the property were observed from the street(s) as of the
inspection date of the appraisal. Physical characteristics of the property were obtained from tax assessment
records, available plans, if any, descriptive information, and interviewing the client and other
knowledgeable persons. It is assumed the interior of the subject property is consistent with the exterior
conditions as observed and that other information relied upon is accurate.

3) If provided, the estimated insurable value is included at the request of the Client and has not been
performed by a qualified insurance agent or risk management underwriter. This cost estimate should not
be solely relied upon for insurable value purposes. The Appraiser is not familiar with the definition of
insurable value from the insurance provider, the local governmental underwriting regulations, or the types
of insurance coverage available. These factors can impact cost estimates and are beyond the scope of the
intended use of this appraisal. The Appraiser is not a cost expert in cost estimating for insurance purposes.
4) The dollar amount of any value opinion herein rendered is based upon the purchasing power and price of
the United States Dollar as of the effective date of value. This appraisal is based on market conditions
existing as of the date of this appraisal.
5) The value opinions reported herein apply to the entire property. Any proration or division of the total into
fractional interests will invalidate the value opinions, unless such proration or division of interests is set
forth in the report. Any division of the land and improvement values stated herein is applicable only under
the program of utilization shown. These separate valuations are invalidated by any other application.
6) Any projections of income and expenses, including the reversion at time of resale, are not predictions of
the future. Rather, they are BBG, Inc.’s best estimate of current market thinking of what future trends will
be. No warranty or representation is made that such projections will materialize. The real estate market is
constantly fluctuating and changing. It is not the task of an appraiser to estimate the conditions of a future
real estate market, but rather to reflect what the investment community envisions for the future in terms
of expectations of growth in rental rates, expenses, and supply and demand. The forecasts, projections, or
operating estimates contained herein are based on current market conditions, anticipated short-term
supply and demand factors, and a continued stable economy. These forecasts are, therefore, subject to
changes with future conditions.
7) The Appraiser assumes no monetary liability or responsibility for any changes in economic or physical
conditions which occur following the effective date of value within this report that would influence or
potentially affect the analyses, opinions, or conclusions in the report. Any subsequent changes are beyond
the scope of the report.
8) Any proposed or incomplete improvements included in the appraisal report are assumed to be satisfactorily
completed in a workmanlike manner or will be thus completed within a reasonable length of time according
to plans and specifications submitted.
9) If the appraisal report has been prepared in a so-called “public non-disclosure” state, real estate sales prices
and other data, such as rents, prices, and financing, are not a matter of public record. If this is such a “non-
disclosure” state, although extensive effort has been expended to verify pertinent data with buyers, sellers,
brokers, lenders, lessors, lessees, and other sources considered reliable, it has not always been possible to
independently verify all significant facts. In these instances, the Appraiser may have relied on verification
obtained and reported by appraisers outside of our office. Also, as necessary, assumptions and adjustments
have been made based on comparisons and analyses using data in the report and on interviews with market
participants. The information furnished by others is believed to be reliable, but no warranty is given for its
accuracy.
10) Although the Appraiser has made, insofar as is practical, every effort to verify as factual and true all
information and data set forth in this report, no responsibility is assumed for the accuracy of any
information furnished the Appraiser either by the Client or others. If for any reason, future investigations
should prove any data to be in substantial variance with that presented in this report, the Appraiser reserves
the right to alter or change any or all analyses, opinions, or conclusions and/or opinions of value.
11) The right is reserved by the Appraiser to make adjustments to the analyses, opinions, and conclusions set
forth in the appraisal report as may be required by consideration of additional or more reliable data that
may become available. No change of this report shall be made by anyone other than the Appraiser. The
Appraiser shall have no monetary liability or responsibility for any unauthorized change(s) to the report.
12) The submission of the appraisal report constitutes completion of the services authorized and agreed upon.
Such appraisal report is submitted on the condition the Client will provide reasonable notice and customary

compensation, including expert witness fees, relating to any subsequent required attendance at
conferences, depositions, or judicial or administrative proceedings. In the event the Appraiser is
subpoenaed for either an appearance or a request to produce documents, a best effort will be made to
notify the Client immediately. The Client has the sole responsibility for obtaining a protective order,
providing legal instruction not to appear with the appraisal report and related work files, and will answer
all questions pertaining to the assignment, the preparation of the report, and the reasoning used to
formulate the opinion of value. Unless paid in whole or in part by the party issuing the subpoena or by
another party of interest in the matter, the Client is responsible for all unpaid fees resulting from the
appearance or production of documents regardless of who orders the work.

Overview
SERVICES
BBG OVERVIEW
Valuation
BBG is one of the nation’s largest real estate due diligence + Single Asset Valuation

firms with more than 45 offices across the country serving + Portfolio Valuation

more than 3,000 clients. We deliver best-in-class valuation, + Institutional Asset Valuation

advisory and assessment services with a singular focus of + Appraisal Review

meeting our clients’ needs. + Appraisal Management

+ Lease and Cost Analysis

Our professional team offers broad industry expertise and + Insurance Valuation

deep market knowledge to help clients meet their objectives + Arbitration & Consulting

throughout the real estate life cycle. + Feasibility Studies

+ Highest and Best Use Studies

BBG clients include commercial real estate professionals, + Evaluation

investors, lenders, attorneys, accountants and corporations. + Investment analysis

+ Tax appeals

+ Litigation Support

+ Manufactured Housing and Campgrounds

THE BBG DIFFERENCE
National Footprint. BBG is one of only two national firms Advisory

offering in-house valuation and environmental and property + ASC 805 Business combinations

condition assessment services for all commercial property types. + ASC 840 Leases

+ Purchase Price Allocations

Customer-focused Growth. BBG is one of the largest national + Portfolio Valuations for reporting net

due diligence firms because we deliver best-in-class work asset values (NAV)
product and provide excellent customer care. + Public and non-traded REIT valuations

+ Valuations for litigation and

Qualified Team. Over 50 percent of BBG appraisers are MAI litigation support
designated and offer deep industry expertise gained through + Sale-leaseback valuation analysis

real-world experience. + Valuations for bankruptcy/fresh

start accounting
+ Cost segregation analysis
Unbiased Independence. By focusing exclusively on

due diligence services, BBG guarantees an independent
perspective free from potential conflicts of interest. Assessment
+ Environmental due diligence

Innovative Technology. BBG has made significant analytics + Property condition consulting

and IT investments to continually improve our data and + Small loan services

report quality. + Energy consulting

+ Environmental consulting

+ Zoning

+ ALTA Surveys

ADDENDA 47
A DDENDA
Glossary .................................................................................................................................................................A
Property Survey ..................................................................................................................................................... B
Flood Map ............................................................................................................................................................. C
Comparable Land Sales ......................................................................................................................................... D
Appraiser Qualifications and Licenses .................................................................................................................... E

ADDENDA A
G LOSSARY

Appraisal: (noun) the act or process of developing an opinion of value; an Confidential Information:
opinion of value. (adjective) of or pertaining to appraising and related functions 1: information that is either:
such as appraisal practice or appraisal services.7 • Identified by the client as confidential when providing it to a
valuer and that is not available from any other source, or
Appraisal Practice: valuation services performed by an individual acting as an • Classified as confidential or private by applicable law or
appraiser, including but not limited to appraisal and appraisal review.7 regulation.
Appraisal Review: (noun) the act or process of developing an opinion about the 2: Information that is either
quality of another appraiser’s work (i.e., a report, part of a report, a workfile, or • Identified by the client as confidential when providing it to an
appraiser and that is not available from any other source; or
some combination of these), that was performed as part of an appraisal or
• Classified as confidential or private by applicable law or
appraisal review assignment, (adjective) of or pertaining to an opinion about the
regulation *
quality of another appraiser’s work that was performed as part of an appraisal
• NOTICE: For example, pursuant to the passage of the Gramm-
or appraisal review assignment.7
Leach-Bliley Act in November 1999, some public agencies
Appraiser: one who is expected to perform valuation services competently and have adopted privacy regulations that affect appraisers. The
in a manner that is independent, impartial and objective.7 Federal Trade Commission (FTC) issued two rules. The first
rule (16 CFR 313) focuses on the protection of “non-public
Appraiser’s Peers: other appraisers who have expertise and competency in a personal information” provided by consumers to those
similar type of assignment.7 involved in financial activities “found to be closely related to
Assessed Value: The value of a property according to the tax rolls in ad valorem banking or usual in connection with the transaction of
taxation; may be higher or lower than market value, or based on an assessment banking.” These activities include “appraising real or personal
ratio that is a percentage of market value. 1 property.” The second rule (16 CFR 314) requires appraisers
to safeguard customer non-public personal information.
Asset:
Significant liability exists for appraisers should they fail to
1. Any item, the rights to which may have economic value, including
comply with these FTC rules. 7
financial assets (cash or bonds), business interests, intangible
assets (copyrights and trademarks), and physical assets (real estate Cost: the actual or estimated amount required to create, reproduce, replace
and personal property). or obtain a property. 7
2.
In general business usage, something owned by a business Cost Approach: A set of procedures through which a value indication is derived
and reflected in the owner’s business sheet. for the fee simple interest in a property by estimating the current cost to
Asset: A resource controlled by the entity as a result of past events and from construct a reproduction of (or replacement for) the existing structure,
which future economic benefits are expected to flow to the entity. 2 including an entrepreneurial incentive, deducting depreciation from the total
cost, and adding the estimated land value. Adjustments may then be made to
Assignment: a valuation service that is provided by an appraiser as a
the indicated fee simple value of the subject property to reflect the value of
consequence of an agreement with a client.7
the property interest being appraised. 1
Assignment Conditions: Assumptions, extraordinary assumptions, hypothetical
Credible: worthy of belief.7
conditions, laws and regulation, jurisdictional exceptions, and other conditions
Deferred Maintenance: Items of wear and tear on a property that should be
that affect the scope of work.7
fixed now to protect the value or income-producing ability of the property,
Assignment Elements: Specific information needed to identify the appraisal or such as a broken window, a dead tree, a leak in the roof, or a faulty roof that
appraisal review problem: client and any other intended users, intended use of must be completely replaced. These items are almost always curable.1
the appraiser’s opinions and conclusions, type and definition of value; effective
Disposition Value: The most probable price that a specified interest in real
date of the appraiser’s opinions and conclusions; subject of the assignment and
property should bring under the following conditions: 1) Consummation of a
its relevant characteristics; and assignment conditions.7
sale within a specific time, which is short than the typical exposure time for
Assignment Results: An appraiser’s opinions or conclusions, not limited to such a property in that market. 2) The property is subjected to market
value, that were developed when performing an appraisal assignment, an conditions prevailing as of the date of valuation. 3) Both the buyer and seller are
appraisal review assignment, or a valuation service other than an appraisal or acting prudently and knowledgeably. 4) The seller is under compulsion to sell.
appraisal review.7 5) The buyer is typically motivated. 6) Both parties are acting in what they
Bias: a preference or inclination that precludes an appraiser’s impartiality, consider to be their best interests. 7) An adequate marketing effort will be made
independence, or objectivity in an assignment.7 during the exposure time. 8) Payment will be made in cash in U.S. dollars (or
the local currency) or in terms of financial arrangements comparable thereto. 9)
Business Enterprise: an entity pursuing an economic activity.7 The price represents the normal consideration of the property sold, unaffected
Business Equity: the interests, benefits, and rights inherent in the ownership of by special or creative financing or sales concessions granted by anyone
a business enterprise or a part thereof in any form (including, but not necessarily associated with the sale. This definition can also be modified to provide for
limited to, capital stock, partnership interests, cooperatives, sole valuation with specified financing terms. 1
proprietorships, options, and warrants).7 Economic Life: The period over which improvements to real estate
Capital Expenditure: Investments of cash (or the creation of liability) to acquire contribute to property value. 1
or improve an asset, e.g., land, buildings, building additions, site improvements, Effective Date: the date to which the appraiser’s analysis, opinions and
machinery, equipment; as distinguished from cash outflows for expense items conclusions apply, also referred to as date of value. 7
that are normally considered part of the current period’s operations. Also
referred to as Cap Ex.1 Effective Gross Income Multiplier (EGIM): The ratio between the sale price
Cash Equivalency Analysis: An analytical process in which the sale price of a (or value) of a property and its effective gross income.1
transaction with nonmarket financing or financing with unusual conditions or Effective Rent: Total base rent, or minimum rent stipulated in a lease, over
incentives is converted into a price expressed in terms of cash or its equivalent.1 the specified lease term minus rent concessions, the rent that is effectively
Client: the party or parties (i.e., individual, group or entity) who engage an paid by a tenant net of financial concessions provided by a landlord. 1
appraiser by employment or contract in a specific assignment, whether directly Exposure Time: an opinion, based on supporting market data, of the length
or through an agent.7 of time that the property interest being appraised would have been offered
Condominium Ownership: A form of fee ownership of separate units or portions on the market prior to the hypothetical consummation of a sale at the
of multiunit buildings that provides for formal filing and recording of a divided market value on the effect date of the appraisal.7
interest in real estate.1 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. 7
Glossary Page 1
Fair Market Value: Highest and Best Use:
1. In nontechnical usage, a term that is equivalent to the contemporary 1. The reasonably probable use of property that results in the highest value.
usage of market value. The four criteria that the highest and best use must meet are legal
2. As used in condemnation, litigation, income tax, and property tax permissibility, physical possibility, financial feasibility, and maximum
situations, a term that is similar in concept to market value but may be productivity.
defined explicitly by the relevant agency. For example, one definition of 2. The use of an asset that maximizes its potential and that is possible,
fair market value provided by the Internal Revenue Service for certain legally permissible, and financially feasible. The highest and best use may
purposes is as follows: The price at which the property would change be for continuation of an asset’s existing use or for some alternative use.
hands between a willing buyer and a willing seller, neither being under This is determined by the use that a market participant would have in
any compulsion to buy or to sell and both having reasonable knowledge mind for the asset when formulating the price that it would be willing to
of relevant facts. The fair market value of a particular item of property bid. (IVS).
includible in the decedent’s gross estate is not to be determined by a 3. [The] highest and most profitable use for which the property is adaptable
forced sale price. Nor is the fair market value of an item of property to and needed or likely to be needed in the reasonably near future. (Uniform
be determined by the sale price of the item in a market other than that Appraisal Standards for Federal Land Acquisitions) 1
in which such item is most commonly sold to the public, taking into
Hypothetical Condition: a condition, directly related to a specific assignment,
account the location of the item wherever appropriate. (IRS Regulation
which is contrary to what is known by the appraiser to exist on the effective
§20.2031-1) 1
date of the assignment results, but is used for the purpose of analysis.7
Fair Share:
Income Capitalization Approach: Specific appraisal techniques applied to
1. A share of a fund or deposit that is divided or distributed proportionately. develop a value indication for a property based on its earning capability and
2. A share of a burden or obligation that is divided proportionately; e.g., a calculated by the capitalization of property income. 1
tenant in a multitenant building or development may be required to pay
a pro rata share of the building’s operating expenses based on the Inspection: Personal observation of the exterior or interior of the real estate
number of square feet the tenant occupies. In a shopping center, the that is the subject of an assignment performed to identify the property
tenant’s share of operating costs is often stated as a fraction, with the characteristics that are relevant to the assignment, such as amenities, general
gross leasable area of the tenant’s premises as the numerator and the physical condition, and functional utility. Note that this is not the inspection
gross leasable area or gross leased area of the entire shopping center as process performed by a licensed or certified building inspector. 1
the denominator. Insurable Value: A type of value for insurance purposes. 1
3. The share of a trade area that a retail facility is likely to capture; assumes
Intangible Property (intangible Assets): Nonphysical assets, including but not
that capture is a function of property size as a proportion of the overall
limited to franchises, trademarks, patents, copyrights, goodwill, equities,
inventory of competitive space in the trade area, i.e., that the facility
securities, and contracts as distinguished from physical assets such as facilities
captures a “fair share” of the trade area.1
and equipment.7
Fair Value:
Intended Use: the user(s) of an appraiser’s reported appraisal or appraisal
1. The price that would be received to sell an asset or paid to transfer a
review assignment results, as identified by the appraiser based on
liability in an orderly transaction between market participants at the
communication with the client at the time of the assignment.7
measurement date. (FASB)
2. The estimated price for the transfer of an asset or liability between Intended User: the client and any other party as identified, by name or type,
identified knowledgeable and willing parties that reflects the as users of the appraisal or appraisal review report by the appraiser, based on
respective interests of those parties. (This does not apply to communication with the client at the time of the assignment.7
valuations for financial reporting.) (IVS).1 Internal Rate of Return (“IRR”): The annualized yield rate or rate of return on
3. The price that would be received to sell an asset or paid to capital that is generated or capable of being generalized within an investment
transfer a liability in an orderly transaction between market of portfolio over a period of ownership. Alternatively, the indicated
participants at the measurement date.2 return of capital associated with a projected or pro forma income stream.
Feasibility Analysis: a study of the cost benefit relationship of an economic The discount rate that equates the present value of the net cash flows of a
endeavor.1 project with the present value of the capital investment. It is the rate at which
the Net Present Value (NPV) equals zero. The IRR reflects both the return on
Fee Simple Estate: Absolute ownership unencumbered by any other interest invested capital and the return of the original investment, which are basic
or estate, subject only to the limitations imposed by the governmental considerations of potential investors. Therefore, deriving the IRR from analysis
powers of taxation, eminent domain, police power, and escheat. 1 of market transactions of similar properties having comparable income
Floor Area Ratio (FAR): The relationship between the above-ground floor patterns is a proper method for developing market discount rates for use in
area of a building, as described by the zoning or building code, and the area valuations to arrive at Market Value. Used in discounted cash flow analysis to
of the plot on which it stands; in planning and zoning, often expressed as a find the implied or expected rate of return of the project, the IRR is the rate of
decimal, e.g., a ratio of 2.0 indicates that the permissible floor area of a return which gives a zero net present value (NPV). See also equity yield rate
building is twice the total land area. 1 (YE); financial management rate of return (FMRR); modified internal rate of
return (MIRR); yield rate (Y). 1
Going Concern:
Investment Value: 1) The value of a property to a particular investor or class
1. An established and operating business having an indefinite future life.
of investors based on the investor’s specific requirements. Investment value
2. An organization with an indefinite life that is sufficiently long that, over
may be different from market value because it depends on a set of investment
time, all currently incomplete transformations [transforming resources
criteria that are not necessarily typical of the market. 2) The value of an asset to
from one form to a different, more valuable form] will be completed. 1
the owner or a prospective owner for individual investment or operational
Gross Building Area (GBA): objectives. (IVS) 1
1. Total floor area of a building, excluding unenclosed areas, measured Jurisdictional Exception: an assignment condition established by applicable
from the exterior of the walls of the above-grade area. This includes law or regulation, which precludes an appraiser from complying with a part
mezzanines and basements if and when typically included in the market of USPAP.7
area of the type of property involved. Leasehold Interest: The right held by the lessee to use and occupy real estate
2. Gross leasable area plus all common areas. for a stated term and under the conditions specified in the lease. 1
3. For residential space, the total area of all floor levels measured from Leased Fee Interest: The ownership interest held by the lessor, which includes
the exterior of the walls and including the super structure and the right to receive the contract rent specified in the lease plus the reversionary
substructure basement; typically does not include garage space. 1 right when the lease expires.1
Liquidation Value: The most probable price that a specified interest in real
Glossary Page 2
property should bring under the following conditions: 1) Consummation of a Net Rentable Area (NRA): 1) The area on which rent is computed. 2) The
sale within a short time period; 2) The property is subjected to market Rentable Area of a floor shall be computed by measuring to the inside finished
conditions prevailing as of the date of valuation; 3) Both the buyer and seller surface of the dominant portion of the permanent outer building walls,
are acting prudently and knowledgeably; 4) The seller is under extreme excluding any major vertical penetrations of the floor. No deductions shall be
compulsion to sell; 5) The buyer is typically motivated. 6) Both parties are made for columns and projections necessary to the building. Include space
acting in what they consider to be their best interests. 7) A normal marketing such as mechanical room, janitorial room, restrooms, and lobby of the floor.5
effort is not possible due to the brief exposure time 8) Payment will be made in Penetration Ratio (Rate): The rate at which stores obtain sales from within a
cash in U.S. dollars or in terms of financial arrangements comparable thereto. trade area or sector relative to the number of potential sales generated;
9) The price represents the normal consideration for the property sold,
usually applied to existing facilities. Also called: penetration factor.1
unaffected by special or creative financing or sales concessions granted by
anyone associated with the sale. This definition can also be modified to Personal Inspection: a physical observation performed to assist in identifying
provide for valuation with specified financing terms.1 relevant property characteristics in a valuation service.7
Load Factor: A measure of the relationship of common area to useable area Personal Property: any tangible or intangible article that is subject to
and therefore the quality and efficiency of building area layout, with higher ownership and not classified as real property, including identifiable tangible
load factors indicating a higher percentage of common area to overall objects that are considered by the general public as being “personal”, such
rentable space than lower load factors; calculated by subtracting the amount as furnishings, artwork, antiques, gems and jewelry, collectibles, machinery
of usable area from the rentable area and then dividing the difference by the and equipment, and intangible property that is created and stored
usable area: 1 electronically such as plans for installation art, choreography, emails or
designs for digital tokens.7
Load Factor =
Physical Characteristics: attributes of a property that are observable or
measurable as a matter of fact, as distinguished from opinions and
(Rentable Area – Useable Area) Usable Area conclusions, which are the result of some level of analysis or judgement.7
Price: the amount asked, offered or paid for a property.7
Market Value: a type of value stated as an opinion, that presumes the transfer Prospective opinion of value. A value opinion effective as of a specified
of a property (i.e., a right of ownership or a bundle of such rights), as of a future date. The term does not define a type of value. Instead it identifies
certain date, under specific conditions set forth in the value definition that is a value opinion as being effective at some specific future date. An opinion
identified by the appraiser as applicable in an appraisal.7 of value as of a prospective date is frequently sought in connection with
projects that are proposed, under construction, or under conversion to a
Market Value "As If Complete" On The Appraisal Date: Market value new use, or those that have not yet achieved sellout or a stabilized level of
as if complete on the effective date of the appraisal is an estimate of the long-term occupancy. 1
market value of a property with all construction, conversion, or
rehabilitation hypothetically completed, or under other specified Real Estate: an identified parcel or tract of land, including improvements, if
hypothetical conditions as of the date of the appraisal. With regard to any.7
properties wherein anticipated market conditions indicate that Real Property: the interests, benefits and rights inherent in the ownership
stabilized occupancy is not likely as of the date of completion, this of real estate.7
estimate of value should reflect the market value of the property as if
Reconciliation: A phase of a valuation assignment in which two or more value
complete and prepared for occupancy by tenants.
indications are processed into a value opinion, which may be a range of value,
Market Value "As Is" On The Appraisal Date: Value As Is -The value of a single point estimate, or a reference to a benchmark value. 1
specific ownership rights to an identified parcel of real estate as of the
Relevant Characteristics: features that may affect a property’s value or
effective date of the appraisal; relates to what physically exists and is
marketability such as legal, economic or physical characteristics.7
legally permissible and excludes all assumptions concerning
hypothetical market conditions or possible rezoning. See also effective Reliable Measurement: [The IAS/IFRS framework requires that] neither an
date; prospective value opinion. asset nor a liability is recognized in the financial statements unless it has a
cost or value that can be measured reliably.2
Market Value of the Total Assets of the Business: The market value of
the total assets of the business is the market value of all of the tangible Remaining Economic Life: The estimated period over which existing
and intangible assets of a business as if sold in aggregate as a going improvements are expected to contribute eco-nomically to a property; an
concern. This assumes that the business is expected to continue estimate of the number of years remaining in the economic life of a structure
operations well into the future. 4 or structural components as of the effective date of the appraisal; used in the
economic age-life method of estimating depreciation. 1
Replacement Cost: The estimated cost to construct, at current prices as of the
effective appraisal date, a substitute for the building being appraised, using
Marketing Time: An opinion of the amount of time it might take to sell a real modern materials and current standards, design, and layout. 1
or personal property interest at the concluded market value level during Report: any communication, written or oral, of an appraisal or appraisal
the period immediately after the effective date of an appraisal. Marketing review that is transmitted to the client or a party authorized by the client upon
time differs from exposure time, which is always presumed to precede the completion of an assignment.7
effective date of an appraisal. (Advisory Opinion 7 of the Appraisal Standards
Board of The Appraisal Foundation and Statement on Appraisal Standards No. Retrospective Value Opinion: A value opinion effective as of a specified
6, “Reasonable Exposure Time in Real Property Market Value Opinions” historical date. The term retrospective does not define a type of value. Instead,
address the determination of reasonable exposure and marketing time.). 3 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
Mass Appraisal: the process of valuing a universe of properties as of a given appeals, damage models, lease renegotiation, deficiency judgments, estate
date using standard methodology, employing common data and allowing for tax, and condemnation. Inclusion of the type of value with this term is
statistical testing.7 appropriate, e.g., “retrospective market value opinion.” 1
Mass Appraisal Model: a mathematical expression of how supply and Sales Comparison Approach: The process of deriving a value indication for the
demand factors interact in a market.7 subject property by comparing sales of similar properties to the property being
Misleading: intentionally or unintentionally misrepresenting, misstating or appraised, identifying appropriate units of comparison, and making
concealing relevant facts or conclusions.7 adjustments to the sale prices (or unit prices, as appropriate) of the comparable
properties based on relevant, market-derived elements of comparison. The
Net Lease: A lease in which the landlord passes on all expenses to the tenant.
sales comparison approach may be used to value improved properties, vacant
See also lease. 1
land, or land being considered as though vacant when an adequate supply of
Glossary Page 3
comparable sales is available. 1
Scope of Work: the type and extent of research and analyses in an appraisal
or appraisal review assignment. 7
Signature: personalized evidence indicating authentication of the work
performed by the appraiser and the acceptance of the responsibility for
content, analyses and the conclusions in the report.7
Stabilized value: A value opinion that excludes from consideration any
abnormal relationship between supply and demand such as is experienced in
boom periods when cost and sale price may exceed the long-term value, or
during periods of depression, when cost and sale price may fall short of
long-term value. It is also a value opinion that excludes from consideration any
transitory condition that may cause excessive construction costs, e.g., a
premium paid due to a temporary shortage of supply.
Substitution: The principle of substitution states that when several similar or
commensurate commodities, goods, services are available, the one with the
lowest price will attract the greatest demand and widest distribution. This is the
primary principle upon which the cost and sales comparison approaches are
based. 3
Total Assets of a Business: Total assets of a business is defined by the
Appraisal Institute as “the tangible property (real property and personal
property, including inventory and furniture, fixtures and equipment) and
intangible property (cash, workforce, contracts, name, patents, copyrights, and
other residual intangible assets, to include capitalized economic profit).”
Use Value:
The value of a property assuming a specific use, which may or may not be the
property’s highest and best use on the effective date of the appraisal. Use value
may or may not be equal to market value but is different conceptually. 1
Valuation Service: a service pertaining to an aspect of property value,
regardless of the type of service and whether it is performed by appraisers or
by others.7
Value: the monetary relationship between properties and those who buy and
sell, or use those properties, expressed as an opinion of the worth of a property
at a given time.7
Workfile: data, information and documentation necessary to support the
appraiser’s opinions and conclusions and to show compliance with USPAP.7
1
Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago:
Appraisal Institute 2010). 2Appraisal Institute, International Financial Reporting
Standards for Real Property Appraiser, IFRS Website, www.ifrs-
ebooks.com/index.html. 3Appraisal Institute, The Appraisal of Real Estate, 13th
ed. (Chicago: Appraisal Institute 2008). 4 This definition is taken from
“Allocation of Business Assets Into Tangible and Intangible Components: A New
Lexicon,” Journal of Real Estate Appraisal, January 2002, Volume LXX, Number
1. This terminology is to replace former phrases such as: value of the going
concern. 5 Financial Publishing Company, The Real Estate Dictionary, 7 ed. 6
th
U.S. Treasury Regulations. 7USPAP 2020-2021
Glossary Page 4
ADDENDA B
P ROPERTY S URVEY

December 29, 2020
12/29/2020
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ADDENDA D
C OMPARABLE L AND S ALES

Land Sale Comparable #1
Vacant Industrial/Commercial Land
5760 West 3500 South
West Valley City, UT 84128
Salt Lake County
BBG Property #549291
Property Data
Property Type/Use Land Lat/Long 40.697980 / -112.0275
Industrial
Parcel ID # 14-26-476-013 Census Tract 1134.14
Opportunity Zone No Frontage Mountain View Corridor
Gross Land Area 233,046 SF Net Land Area 233,046 SF
5.35 Acres 5.35 Acres
Utilities All available to site. Terrain / Topography
Easements / Encroachments Cross access assumed as this is a rear Zoning LI
parcel Light Industrial
Comments This parcel has frontage along Mountain View Corridor, however access is through surrounding properties of
existing commercial development.
Sale Transaction Data for BBG Event #707871 on 8/1/2021 Net Area Gross Area
Transaction Date 8/1/2021 Consideration $1,650,000 Price PSF $7.08 $7.08
Sale Status Closed Adjustments $0 Price Per Acre $308,411 $308,411
Cash Equivalent Price $1,650,000
Property Rights Fee Simple
Grantor Winder Properties, LLC
Grantee Sweetest Ever Real Estate, LLC
Comments This is a rear parcel of an existing commercial development and storage facility.
Verification 3/26/2022
MLS, Salt Lake County Records
1
Vacant Industrial Land
Magna, UT 84044
Salt Lake County
Property Data
Industrial
Parcel ID # 14-33-351-004, 14-33-351-008, 14-33- Census Tract 1139.05
351-010
Opportunity Zone No
Gross Land Area 1,427,026 SF Net Land Area 1,427,026 SF
Utilities Typical utilities and municipal Terrain / Topography Generally level
services available to site. However,
storm drain must be extended
Zoning M-1
Comments Irregular shaped parcel.
Grantor Magna 71, LLC
Grantee Fastenal Company
Comments This sale was reported by Costar, but the sale price was not confirmed.
Costar - Reported as not confirmed, County records
2
Salt Lake County
Property Data
Industrial
Opportunity Zone No Frontage 2100 South
Utilities All available to site. Terrain / Topography Generally level
Easements / Encroachments None detrimental known Zoning M-2
Industrial
Comments level, but roughly 2 acres is low lying wetlands, difficult to develop.
Grantor Kennecott Utah Copper, LLC
Grantee Rory Scott Sower and Brent Fox
Comments Negotiations began in early 2020, went under contract January 2021, Closed in April 2021.
Bobby Stevens Colliers International; County Records
3
Salt Lake County
Property Data
Industrial
Opportunity Zone No Frontage 2100 South frontage road
Flood Designation Zone X (Unshaded)
Utilities All available to site. Terrain / Topography Slightly sloping
Zoning M
Industrial
Comments 1.5 acres of wetlands to be filled at a reported cost of $800,000
Sale Status Closed Adjustments $800,000 Price Per Acre $261,360 $261,360
Grantor Joseph E. Dansie
Grantee West Valley Utah Industrial Owner, LLC
Comments Agent indicated that the sale price could not be disclosed, but that it was actually higher than the asking price.
(Asking price is shown)
Cushman Wakefield; County records.
4
Salt Lake County
Property Data
Industrial
Parcel ID # 14-22-200-011 & 014 Census Tract 1134.15
Opportunity Zone No
Utilities All available to site. Terrain / Topography Generally level
Zoning M
Comments Relatively level industrial site required some fill, brought to the site prior to the sale.
Grantor MPM Property Holdings, LLC
Grantee Kelez Cottonwood Heights, LLC
Comments All necessary fill had been brought to the site prior to the sale. Buyer planning to build a 100,000 square foot
industrial building on the site.
Colliers International; County records
5
1450 North 8800 West
Salt Lake County
Property Data
Industrial
Parcel ID # 07:20:400:008, 009, 010 Census Tract 1139.06
Opportunity Zone No Frontage 8800 West

Utilities Only electric is available to the site Terrain / Topography Generally level
Easements / Encroachments None detrimental known Zoning M-1
Manufacturing
Comments Relatively level triangle shaped parcel
Grantor Premier Western Properties, LLC
Grantee Richard M & Lynn D Morehouse
Comments County records indicate Tenant in Common ownership.
Newmark Knight Frank Valuation & Advisory, LLC referencing listing broker
6
ADDENDA E
A PPRAISER Q UALIFICATIONS AND L ICENSES

Darrell Moss, MAI
Senior Appraiser
Work: 801-473-30390059
dmoss@bbgres.com
Profile
Darrell is a Senior Appraiser at BBG in the Salt Lake City office. Darrell has appraised various types of commercial
properties. Some specialty properties include subdivisions, multifamily developments, apartment to condominium
conversion, mixed use, billboards, gravel pits, lumber yards, Vivint Home Automation Arena (Utah Jazz), MLP oil
pipelines.
Professional Affiliations
State of Utah (License No. 6272290)
Designated Member of The Appraisal Institute (MAI)
Education
MBA, University of St. Thomas, May 1990
Bachelor of Science, Brigham Young University, April 1984
Coursework
• Appraisal Principles Allied Business Schools, November 2005
• USPAP Allied Business Schools, November 2005
• Appraisal Procedures Allied Business Schools, November 2005
• Basic Income Capitalization (Course 310) Appraisal Institute, May 2007
• General Appraiser Income Approach II - Appraisal Institute, September 2008
• General Report Writing and Case Studies - Appraisal Institute, July 2008
• General Appraiser Sales Comparison Approach- Appraisal Institute, May 2008
• General Appraiser Market Analysis and Highest and Best Use - Appraisal Institute, November 2008
• General Appraiser Site Valuation and Cost Approach - Appraisal Institute, October 2008
• Eminent Domain, Utah Land Use Institute, March 2009
• Real Estate Finance Statistics and Valuation Modeling, Appraisal Institute Online, August 2009
• Advanced Applications, Appraisal Institute, September 2009
• Advanced Sales Comparison & Cost Approaches, Appraisal Institute, September 2009
• Report Writing and Valuation Analysis, Appraisal Institute, November 2009
• Business Practices and Ethics, Appraisal Institute Online, December 2009
• Water Rights Seminar, Appraisal Institute, November 2010
• USPAP Update, IRWA, April 2011
• Eminent Domain 2012: How to Determine Just Compensation, February 2012
• Appraisal of Assisted Living Facilities, November 2015
• Fundamental Concepts of Analysis, November 2015
• Appraisal Industrial Incubators, November 2017
• Understanding Residential Construction, November 2017
• Forecasting Revenue, December 2018
• USPAP UTDATE, Business Practices and Ethics, December 2018
●
STATE OF UTAH
DEPARTMENT OF COMMERCE
DIVISION OF REAL ESTATE
ACTIVE LICENSE
Certified General Appraiser
6272290-CG00
DARRELL MOSS
NAME OF HOLDER
DATE ISSUED EXPIRATION
11/26/2021 11/30/2023
https://secure.utah.gov/relms/index.html
realestate.utah.gov
STATE OF UTAH
ACTIVE LICENSE
11/26/2021
11/30/2023
6272290-CG00
DARRELL MOSS
212 E 600 N
LINDON UT 84042
SIGNATURE OF HOLDER REAL ESTATE DIVISION DIRECTOR
Form #2
Corey A. Cook, MAI
Director
Work: 801-321-0059
ccook@bbgres.com
Profile
Corey is a Director at BBG in the Salt Lake City office. He has 17 years full-time appraising and consulting experience
and holds a B.A. degree from Brigham Young University and an MBA degree from Purdue University. He is a certified
appraiser in Utah and has been involved in assignments throughout the western United States. His experience covers
all real estate markets including land, residential and commercial properties, large golf- and ski-oriented master
planned communities and other land development projects, special-purpose and recreational properties, gravel
properties, and a variety of other income producing assets including oil and gas leaseholds and gas gathering and
processing facilities. His primary focus is complex assignments and impaired real estate. His work often supports
expert testimony and decisions made in eminent domain and condemnation proceedings, property tax disputes, real
estate damages including construction defects matters and fire-burned property, bankruptcy, estate planning
matters, and cases involving breach of contract, among other things. His list of clients includes individuals, city,
county, state, and federal government, financial institutions and mortgage companies, insurance and pension funds,
professional firms, and public and private corporations.
Professional Affiliations
State of Utah (License No. 6404407-CG00)
State of Idaho (License No. CGA 4198)
Designated Member of The Appraisal Institute (MAI)
Education
MBA, Purdue University, May 2005
Bachelor of Arts, Brigham Young University, April 2001
Coursework
• Appraisal Principles (Course 110) Appraisal Institute, August 2001
• Appraisal Procedures (Course 120) Appraisal Institute, August 2001
• USPAP (Course 410) Appraisal Institute, September 2001
• Highest & Best Use and Market Analysis (Course 520) Appraisal Institute, March 2002
• Advanced Applications (Course 550) Appraisal Institute, September 2007
• Sales Comparison Approach of Small, Mixed-Use Properties (Course 620) Appraisal Institute, October 2007
• Office Building Valuation: A Contemporary Perspective, June 2007
• Advanced Income Capitalization (Course 510) Appraisal Institute, August 2008
• Advanced Sales Comparison & Cost Approaches (Course 530) Appraisal Institute, November 2009
• General Appraiser Report Writing and Case Studies, Appraisal Institute, April 2011
• Eminent Domain 2012: How to Determine Just Compensation, February 2012
• IRS Valuation (Webinar), Appraisal Institute, July 2012
• Evaluating Commercial Construction, May 2013
• Reviewing Appraisals In Eminent Domain (Course 410) IRWA, March 2014
• Easement Valuation (Course 403) IRWA, September 2014
• Analyzing Tenant Credit Risk and Commercial Lease Analysis, Appraisal Institute, September 2015
• Contamination and the Valuation Process (Webinar), Appraisal Institute, September 2015
• Forecasting Revenue, Appraisal Institute, October 2015
• Eminent Domain and Condemnation, Appraisal Institute, August 2016
• Subdivision Valuation, Appraisal Institute, October 2017
• Business Practices and Ethics, Appraisal Institute, January 2018
• The Discounted Cash Flow Model: Concepts, Issues, and Applications, Appraisal Institute, September 2018
• Appraising Convenience Stores, Appraisal Institute, March 2020
• National USPAP Update Course, Appraisal Institute, September 2020
• Small Hotel/Motel Valuation, Appraisal Institute, December 2020
• Appraising Automobile Dealerships, Appraisal Institute, October 2021
●
STATE OF UTAH
ACTIVE LICENSE
6404407-CG00
COREY COOK
NAME OF HOLDER
DATE ISSUED EXPIRATION
02/03/2021 02/28/2023
https://secure.utah.gov/relms/index.html
realestate.utah.gov
STATE OF UTAH
ACTIVE LICENSE
02/03/2021
02/28/2023
6404407-CG00
COREY COOK
11619 S DOUGLAS VISTA DR
DRAPER UT 84020
SIGNATURE OF HOLDER REAL ESTATE DIVISION DIRECTOR
Form #2

I80 Side Rail Appraisal Letter

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APPRAISAL REPORT

I-80 Side rail property

BBG File #0122009242

Client Manager: J. Philip Cook, MAI

Mr. Robert Keller

Re: Appraisal of Real Property

Dear Mr. Keller:

EXTRAORDINARY ASSUMPTION(S) AND HYPOTHETICAL CONDITION(S)

MARKET VALUE CONCLUSION(S)

I-80 SIDE RAIL PROPERTY APPRAISAL

Da rrel Mos s , MAI Corey Cook, MAI

I-80 SIDE RAIL PROPERTY APPRAISAL

Summary of Salient Facts ....................................................................................................................................... 3

Property Transaction History ................................................................................................................................. 6

Scope of Work ....................................................................................................................................................... 7

Regional Overview ................................................................................................................................................. 9

Site Description ................................................................................................................................................... 16

Property Assessment and Tax Analysis ................................................................................................................ 23

Market Analysis ................................................................................................................................................... 24

COVID-19 & Broader Economic Overview ............................................................................................................ 29

Highest and Best Use ........................................................................................................................................... 30

Valuation Process ................................................................................................................................................ 32

Land Valuation ..................................................................................................................................................... 33

Standard Assumptions and Limiting Conditions ................................................................................................... 43

I-80 SIDE RAIL PROPERTY APPRAISAL

I-80 SIDE RAIL PROPERTY APPRAISAL

I-80 SIDE RAIL PROPERTY APPRAISAL

S UMMARY OF S ALIENT FACTS

Client Snow Chri s tens en & Ma rtinea u

I-80 SIDE RAIL PROPERTY APPRAISAL

Property Name I-80 Si de ra i l property

Land Value With Access $3,680,000 $3.25 per us a bl e s qua re foot

I-80 SIDE RAIL PROPERTY APPRAISAL

EXTRAORDINARY ASSUMPTION(S) AND HYPOTHETICAL CONDITION(S)

I-80 SIDE RAIL PROPERTY APPRAISAL

P ROPERTY T RANSACTION H ISTORY

I-80 SIDE RAIL PROPERTY APPRAISAL

SCOPE OF THE INVESTIGATION

Value in industrial property is primarily in usable land. Wetlands can at times be

I-80 SIDE RAIL PROPERTY APPRAISAL

Data Sources DATA SOURCES

LEVEL OF REPORTING DETAIL

I-80 SIDE RAIL PROPERTY APPRAISAL

R EGIONA L O VERV IEW

I-80 SIDE RAIL PROPERTY APPRAISAL

N EIGHB ORHOOD O VERV IEW

Jurisdiction and Proximity

I-80 SIDE RAIL PROPERTY APPRAISAL

Boundaries and Neighborhood Land Use

The neighborhood is generally defined by the following boundaries.

- North Boundary Salt Lake City Limits

- South Boundary Highway 201

- East Boundary Interstate 215

- West Boundary Salt Lake City limits

I-80 SIDE RAIL PROPERTY APPRAISAL

I-80 SIDE RAIL PROPERTY APPRAISAL

2 S.B. 234 Utah Inland Port Authority.

I-80 SIDE RAIL PROPERTY APPRAISAL

Future Phase of Mountian View Corridor Through Neighborhood

I-80 SIDE RAIL PROPERTY APPRAISAL