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HomeMy WebLinkAboutItem #1 New Day Parkway land swap■ i1114KIRKHAM Appraisals (Bus) (208)233-4132 P.O. Box 2503 Kirkhamappraisal@gmail.com Pocatello, Idaho 83206 AN APPRAISAL REPORT OF A 2.05+/- Acre Tract of Vacant Commercial Land LOCATED AT TBD New Day Parkway Chubbuck, Idaho 83202 CLIENT LandQuest J119KIRKHAM Appraisals P.O. Box 2503 Pocatello, Idaho 83206 (Bus) (208)233-4132 March 14, 2024 Mr. Brandon Ratliff LandQuest Dear Brandon Ratliff, Re: TBD New Day Parkway Chubbuck, Idaho 83202 At your request, we have appraised a real property interest for the above real estate. Our objective was to form one or more opinions about the market value for a 100% ownership interest in the subject property's fee simple estate assuming no liens or encumbrances other than normal covenants and restrictions of record. The subject property physically consists of two autonomous, vacant parcels creating one tract of land. The tract of land consists of a total of 2.98+/- acres with what appears to be two access points from New Day Parkway based on a site concept plan provided by the client. Of the 2.98+/- acres, only about 2.05+/- acres is usable because of ROW easements along the north side of the property. The land is in a developing area with office, medical office, industrial, residential, and vacant land uses, off a new I-15 Interstate Interchange. This tract of land is zoned "C-1" Limited Commercial by the City of Chubbuck. This valuation contains analyses, opinions, and conclusions along with market data and reasoning appropriate for the scope of work detailed later herein. It was prepared solely for the intended use and intended user(s) explicitly identified in the attached report. Unauthorized users do so at their own risk. The appraisal is communicated in the attached document, which conforms to the version of the Uniform Standards of Professional Appraisal Practice (USPAP) in effect on this report's preparation date of March 14, 2024. This letter is not an appraisal report hence it must not be removed from the attached 90 -page document. If this letter is disjoined from the attached appraisal report, then the value opinions set forth in this letter are invalid because the analyses, opinions, and conclusions cannot be properly understood. In general, valuation of the subject property involves no atypical issues. All value opinions are affected by all the information, extraordinary assumptions, hypotheses, general limiting conditions, facts, descriptions, and disclosures stated in the attached appraisal report. After careful consideration of all factors pertaining to and influencing value, the data and analysis thereof firmly supports the following final value opinion(s) for the subject property as of March 11, 2024: $445,000 Market Value "As Is" Thank you for your business. Let us know how we may further serve you. Brian Kirkham, MAI Certified General Appraiser Idaho License CGA -3486 License Expiration Date: 5/9/2024 Table of Contents Overview....................................................................................................... l SalientInformation........................................................................................................ 1 NoteworthyIssues......................................................................................................... 1 Scopeof Work..............................................................................................2 Scopeof Work...............................................................................................................2 Introduction.............................................................................................................. 2 Assignment Elements................................................................................................ 2 Relevant Characteristics.......................................................................................... 4 Extent of Services Provided...................................................................................... 5 Other Intended Use Considerations......................................................................... 5 MiscellaneousMatters.............................................................................................. 5 AppraisalDevelopment............................................................................................ 6 Concept Explanations............................................................................................... 6 Scopeof Work Limitation............................................................................................. 9 Report Reliance & Use Restrictions.............................................................................. 9 Scope of Work Exclusion - Insurable Value ...............................................................10 Extraordinary Assumptions & Disclosures.................................................................. l l Hypothetical Conditions..............................................................................................12 Personal Property & Intangibles..................................................................................12 Definition of Market Value.........................................................................................13 Definition of Real Property Estates.............................................................................14 Non -Disclosure State...................................................................................................16 Assemblage..................................................................................................................16 Disclosures..................................................................................................17 Professional Standards.................................................................................................17 Competency.................................................................................................................17 AreaData...................................................................................................18 RegionalMap..............................................................................................................18 NearbyLand Uses........................................................................................................ 34 Pocatello/Chubbuck Residential Market Analysis...................................................... 35 Regional Commercial Market Data.............................................................................37 SubjectProperty........................................................................................41 Identification of the Property.......................................................................................41 LegalDescription.........................................................................................................41 AerialView..................................................................................................................42 SoilsMap.....................................................................................................................43 TopographyMap......................................................................................................... 44 SaleHistory.................................................................................................................48 FloodHazard............................................................................................................... 48 RealEstate Taxes.........................................................................................................48 Zoning.......................................................................................................................... 48 Zoning.......................................................................................................................... 49 EnvironmentalRisks....................................................................................................50 SubjectProperty.......................................................................................................... 51 SubjectSite..................................................................................................................51 Analyses& Conclusions............................................................................52 ValueIntroduction.......................................................................................................52 RealEstate Cycles....................................................................................................... 53 Highestand Best Use................................................................................................... 54 LandValue.................................................................................................................. 60 Introduction............................................................................................................ 60 Summary of Land Sales.......................................................................................... 66 Land Sales Location Map....................................................................................... 67 Analysis & Conclusions.......................................................................................... 69 ValueSummary........................................................................................................... 71 ExposureTime.............................................................................................................72 Contingent and Limiting Conditions ........................................................................... 73 Certification................................................................................................................. 80 Addenda...................................................................................................... 82 DigitalImages.............................................................................................................. 82 Technical Qualifications.............................................................................................. 83 EngagementLetter....................................................................................................... 84 CopyrightProtection.................................................................................................... 90 Endof Report............................................................................................................... 90 Overview • . Salient Information Property Type Vacant Tract of Commercial Land Real Estate Appraised TBD New Day Parkway Chubbuck, Idaho 83202 County Bannock Estate Valued 100% of the Fee Simple Estate Client LandQuest Client File Number 24-985 Most Likely Buyer Owner -User March 11, 2024 Effective Value Date (point in time that the value applies) Report Date (date the report is transmitted to client) March 14, 2024 Land Size (Usable) 2.05+/- Acres or 89,298+/- square feet Flood Hazard Zone X Zoning Classification "C-1" by the City of Chubbuck Highest & Best Use As Though Vacant Commercial Final Value Conclusion(s) $445,000 Market Value "As Is" Noteworthy Issues The subject property physically consists of two autonomous, vacant parcels creating one tract of land. The tract of land consists of a total of 2.98+/- acres with what appears to be two access points from New Day Parkway based on a site concept plan provided by the client. Of the 2.98+/- acres, only about 2.05+/- acres is usable because of ROW easements along the north side of the property. The land is in a developing area with office, medical office, industrial, residential, and vacant land uses, off anew I-15 Interstate Interchange. This tract of land is zoned "C-1" Limited Commercial by the City of Chubbuck. No atypical factors significantly affect value. The real estate appraised is generally typical for this type of property in this locale. 24-985 Kirkham Appraisals Inc. Page 1 Scope of Work ... Scope of Work Introduction The Uniform Standards of Professional Appraisal Practice (USPAP) defines scope of work as "the type and extent of research and analysis in an assignment". Scope of work includes, but is not limited to: ➢ the extent to which the property is identified; ➢ the extent to which tangible property is observed; ➢ the type and extent of data researched; and ➢ the type and extent of analyses applied to arrive at opinions or conclusions. Assignment Elements The purpose of this assignment (the problem to be solved) is to form one or more opinions about value. This purpose necessitates identification of seven assignment elements listed below. 1. Client Information Client's Name * * Client's Company Name Appraiser(s) Engaged By Client's Interest In Property Appraised 2. Other Intended Users 3. Intended Use Of Report (To aid) 4. Value Opinion(s) Developed Standard / Definition Of Value Used To Form The Value Opinion(s) ** The client is always an intended user. Mr. Brandon Ratliff LandQuest The Client Potential Buyer None Decisions By A Potential Buyer Market value Advisory Opinion 30 of USPAP, which is the same definition as the one in FIRREA. 24-985 Kirkham Appraisals Inc. Page 2 Scope of Work Assignment Elements 5. Key Dates Effective Value Date (point in time the value applies) Date Property Appraised Was Observed By One Or More Appraisers Signing This Report 6. Assignment Conditions Extraordinary Assumptions Hypothetical Conditions Jurisdictional Exceptions Expected Public or Private On -Site or Off - Site Improvements Affect Value Assemblage of Estates or Component Parts Affects Value Other March 11, 2024 Land Observed March 11, 2024 One Or More Apply, Detailed Later Herein None Used None Used Not Expected Not Expected None Used 24-985 Kirkham Appraisals Inc. Page 3 Scope of Work Relevant Characteristics The seventh assignment element is relevant characteristics about the property appraised. These characteristics are typically categorized as physical, legal, and economic. Physical attributes of the property appraised are presented later in the Subject section of this report. Some characteristics are identified below. Atypical issues are listed in the Noteworthy Issues section and may be further detailed elsewhere herein. Unless specifically stated otherwise, the estate appraised (listed below) assumes no adverse leases, liens or encumbrances other than normal covenants and restrictions of record. 7a. Physical Existing Property Use Property Use Reflected In One Or More Value Opinions Sources of Information About the Property Appraised Included 7b. Legal Category Of Property Appraised Estate(s) Appraised Legal Issues Considered Environmental Concerns 7c. Economic Effect Of Lease(s) On Value Cost Information Type of Reconstruction Cost Used Source of Reconstruction Cost Information Vacant Land Vacant Land Just An Exterior Observation; Online Public Records; Public Records in Government Office Real Property Fee Simple No Atypical Legal Issues No Known Environmental Concerns No Leases Hence Not Applicable Not Applicable Not Applicable 24-985 Kirkham Appraisals Inc. Page 4 Scope of Work Extent of Services Provided Number of Final Value Opinions Developed Value Opinion(s) Reflect the Worth Of the Property Appraised Extent Of Report Preparation Other Reporting Requirements Extent Of Data Research Data Sources Documents Considered Data Verification Extent Of Subject Observation by One Or More Appraisers Signing Report Other Intended Use Considerations Client's Prior Engagement Of Appraisal Services Loan To Value Ratio Atypical Issues Assignment Complexity FIRREA Compliance Insurable Value Miscellaneous Matters Scope of Work Agreement 6 As Is An Appraisal Report Not Applicable Extensive Local MLS; Private Data Provider Service; Public Records at Gov't Office(s); Public Records on Gov't Website(s); Online Public Records; Other Appraisers; Real Estate Sales Agents; Buyers and / or Sellers; Landlords and / or Tenants None Direct and Indirect Methods Moderate Land Viewing Specifics of this viewing, if any, are detailed in the Extraordinary Assumptions & Disclosures section of this report. Never Not Applicable No Atypical Issues Typical Complexity FIRREA Not Applicable Insurable Value Is Not An Intended Use Agreement in Addenda 24-985 Kirkham Appraisals Inc. Page 5 Scope of Work Appraisal Development Appraisal development is the extent of research and analyses that produce one or more credible opinions of value for one or more specifically identified intended users and an explicitly stated intended use. In this context, credible is defined as "worthy of belief'. Depending upon the intended use, intended users, and agreements between the appraiser and the client, the appraisal development process may include several, but not necessarily all of the following tasks. ➢ observation of the property appraised ➢ research for appropriate market data ➢ data verification ➢ consideration of influential market area, physical, economic, and governmental factors ➢ determination of the subject's highest and best use(s), if appropriate ➢ development of one or more applicable approaches to value ➢ reconciliation of value indications ➢ preparation of this report In most cases, the core valuation process begins with a highest and best use analysis. This is essential because it establishes a framework for the proper selection of comparables. Cited comparables should have the same highest and best use as the property appraised. 24-985 Kirkham Appraisals Inc. Page 6 Scope of Work Appraisal Development If some property modification like new construction is contemplated, a feasibility analysis may be appropriate. In some cases, feasibility may simply be justified by inferred market evidence like low vacancy or rising rents. According to USPAP, all approaches that are applicable to the interest being appraised and necessary to produce credible results must be developed. The type of highest and best use; extent of feasibility considered; and the relevance of each major approach are listed below. Highest and Best Use Feasibility Analysis (a more detailed study separate from highest & best use) Cost Approach Sales Comparison Income Approach An Inferred Demand Analysis Separate Feasibility Analysis Not Developed Not Applicable And Not Included In Report Applicable And Included In Report Not Applicable And Not Included In Report Quoting "The Appraisal of Real Estate" Thirteenth Edition published by the Appraisal Institute, page 186 says "Highest and best use analysis and feasibility analysis are interrelated, but feasibility analysis may involve data and considerations that are not directly related to highest and best use determinations. Such analyses may be more detailed than highest and best use analysis, have a different focus, or require additional research. " Applicable and necessary approaches were selected for development after consideration of available market data, intended use, and intended user(s). An approach considered not applicable was omitted because this methodology is not appropriate for the property interest being appraised, or sufficient data to properly develop the approach was not available. Any approach judged not applicable, yet included in this report, was developed solely at our client's request. Data used to develop an inapplicable but included approach has a low to nil degree of comparability to the subject. Hence, no emphasis was given an approach deemed not applicable but included. Furthermore, no liability or responsibility is assumed for an approach considered not applicable but included at the client's request. 24-985 Kirkham Appraisals Inc. Page 7 Scope of Work Concept Explanations Intended use and all intended user(s) should be weighed heavily during the scope of work decision. A single intended user who frequently engages appraisal services is likely very knowledgeable about the appraisal process. For this type user, the appraisal development and reporting for less complex property types might be toward the lower end of the spectrum. By contrast, multiple intended users, especially those with opposing motivations, likely need extensive appraisal development and reporting. Litigation is a prime example when a thorough appraisal development and detailed reporting is warranted. A loan to value ratio reflects risk. For commercial -grade loans, ratios over 75% are generally regarded as risky. If a contemplated loan is viewed as risky, then the extent of appraisal development and the level of report detail should be more comprehensive. Similarly, more complex properties generally warrant more thorough analyses and more extensive report details. Prior engagement of appraisal services by a client implies a level of awareness about the appraisal process. A greater awareness may justify a less thorough level of report detail whereas the opposite is true for an individual who has never engaged an appraisal. A Jurisdictional Exception is an assignment condition, which voids a portion of USPAP that is contrary to law or public policy. When a Jurisdictional Exception applies, only the contrary portion is void. The remainder of USPAP remains in full force and effect. Jurisdiction Exceptions always shrink USPAP, not expand it. Data verification affects reliability. Direct data verification confirms information used in the report with one or more parties who have in-depth knowledge about physical characteristics for the property being appraised, or related financial details. Indirect verification employs information obtained from a secondary source like a data reporting service, a multiple listing service, or another appraiser. Direct verification is generally more time- consuming and costly, but also more reliable. Information from all data sources was examined for accuracy, is believed reliable, and assumed reasonably accurate. However, no guaranties or warranties for the information are expressed or implied. No liability or responsibility is assumed by Kirkham Appraisals Inc. or the appraiser(s) for any inaccuracy from any seemingly credible information source. 24-985 Kirkham Appraisals Inc. Page 8 Scope of Work Concept Explanations A statement about observation of the subject property by the appraiser(s) is listed above. If the subject was observed, this viewing was not as thorough as a professional property inspection. A professional inspector determines the precise physical condition, remaining useful life, and operability of major building components like the structural system, roof cover, electrical system, plumbing, and heating plant. Inspectors typically do not ascertain size of the building, or characteristics of the land. By contrast, an appraiser commonly ascertains both land and building size. Ordinarily, appraisers do not determine operability, or remaining useful life of building systems. An appraiser typically views real estate to determine only general attributes like physical condition of the building as a whole, site topography and access, building size, construction quality, floor plan, and functionality of the property as a whole. For this appraisal, no probes, investigations, or studies were made to discover unapparent, adverse physical features. Highest and best use analyses can be categorized into two groups - inferred and fundamental. A fundamental analysis is quantified from broad demographic and economic data such as population, household size, and income. Supply is inventoried. Subject specific characteristics are considered. Then, the relationship between supply and demand is weighed to determine a specific highest and best use for the subject. An inferred analysis uses local trends and patterns to infer a general highest and best use for the subject. For an inferred analysis, market dynamics that might be considered include prices, market exposure times, rents, vacancy, and listings of similar real estate. Inferred analyses emphasize historical data while fundamental analyses are based on future projections. The kind of highest and best use analysis utilized in this assignment is listed above. Scope of Work Limitation All readers of this report should be aware the foundation, for conclusions communicated herein, was based on and limited to an inferred market analysis, not a fundamental market study. Our scope of work agreement with our client does not include a detailed fundamental analysis. A fundamental analysis forecasts demand from broad demographic and economic data like population and income. Existing supply is inventoried. Then the relationship of supply and demand is weighed to determine net demand. An inferred analysis is based on local trends and patterns from which inferences are made. Sales, listings, marketing intervals, and/or price change for other similar land infer there is adequate demand for the subject parcel at a price level congruous with this data. If the client desires an in-depth analysis regarding the subject's marketability, potential alternate uses, or a numeric demand analysis, it is suggested a detailed fundamental market analysis be prepared. Report Reliance & Use Restrictions No liability is assumed, expressed, or implied by Kirkham Appraisals Inc., or the appraiser(s) for unauthorized use of this report. Only those persons, parties, entities, companies, corporations, partnerships, associations, or groups that are explicitly identified as an intended user on page 2 may rely on, and use this report. There are no implied, suggested, inferred, consequential, or indirect intended users of this report. Unauthorized users should not use, or rely on any portion of this document. Unauthorized users do so at their own risk and peril. 24-985 Kirkham Appraisals Inc. Page 9 Scope of Work Exclusion - Insurable Value The cost approach may or may not have been developed herein. Unless explicitly stated otherwise, the cost approach was developed solely to support the subject's market value. Use of this appraisal, in whole or part, for another purpose is not an expected intended use. Nothing in this appraisal should be used, or relied upon to determine the amount or type of insurance coverage to be placed on the subject property. The signatory / signatories to this report assume no liability for, and do not guarantee that any insurable value inferred from this report will result in the subject property being adequately insured for any loss that may be sustained. Since labor costs, material costs, building codes, construction intervals, and governmental regulations are constantly changing, the cost approach may not be a reliable indication of replacement or reproduction cost for any date other than this report's effective value date. 24-985 Kirkham Appraisals Inc. Page 10 Extraordinary Assumptions & Disclosures An extraordinary assumption is defined by the Uniform Standards of Professional Appraisal Practice (USPAP) to be "an assumption, directly related to a specific assignment, as of the effective date of the assignment results, which, if found to be false, could alter the appraiser's opinion or conclusions". Extraordinary assumptions presume as fact otherwise uncertain information. In other words, this type assumption involves uncertainty about an underlying premise. An example is a survey that displays a lot size. If the lot size is later found to be much smaller, then the value conclusion may be negatively affected. USPAP Standard Rule 1-2(f) requires the identification of all extraordinary assumptions that are necessary for credible assignment results. This appraisal employs the following extraordinary assumptions. ➢ Features of the subject site such as legal description, dimensions, size, etc. were obtained from publicly available sources. All information taken therefrom is assumed reasonably correct. ➢ Observation of the subject was limited to a moderate viewing of the entire property. It is assumed the land has no subsoil defects. No soiling borings were made. Furthermore, the appraiser(s) did not attempt to study, dig, probe, investigate, detect, remove materials, or discover unfavorable physical features on, above, or below the ground. ➢ Real estate tax information for the subject was obtained from a reputable online source, so it is assumed reasonably correct. Moreover, this information is assumed the most recent that is expeditiously available to the public. ➢ A public water system and public sewer main are connected to the subject structure, or available near the subject's lot lines. This appraisal assumes these systems possess sufficient capacity to serve the intended use of the subject improvements, if any. This appraisal also assumes the water is potable and non -contaminated. If these systems were inadequate to serve the subject's intended use, then the subject's value and marketability would be adversely affected. ➢ Assumptions and presumptions discussed in the Noteworthy Issues section of this report, if any, are incorporated by way of reference into these Extraordinary Assumptions & Disclosures. ➢ A recently issued title policy was not furnished to the appraiser(s). If a value -impairment is identified or suggested in a title policy, another professional report, or some other document, this appraisal does not address issues that are significantly atypical for a valuation of this type property unless specifically identified in the Scope of Work and/or Noteworthy Issues section of this report. The above extraordinary assumptions as well as other assumptions anywhere herein are integral premises upon which the conclusions in this document are based. If any of these assumptions are later found to be materially untrue or inaccurate, then this report's assignment results may or may not be affected. 24-985 Kirkham Appraisals Inc. Page 11 Hypothetical Conditions USPAP defines a hypothetical condition as "a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis." Hypothetical conditions assume conditions that are contrary to known fact. An illustration is the current valuation of a proposed home. For the purpose of a rational analysis, it is assumed the home exists on the effective value date, but it is known the home is nonexistent. Another example is a new zoning classification, that a property does not have today, but the new zoning is assumed for the purpose of a logical current valuation. Uncertainty is not involved with a hypothetical condition. An essential premise underlying the valuation is known not to exist on the effective value date. USPAP Standard Rule 1-2(g) requires the identification of all hypothetical conditions that are necessary for a credible value opinion. This appraisal employs no hypothetical conditions. Personal Property & Intangibles Personal property is movable and not permanently affixed to the real estate. Examples of personal property are freestanding ranges, refrigerators, tables, desks, chairs, beds, linen, silverware, hand tools, and small utensils. An intangible is a nonphysical asset like franchises, trademarks, patents, goodwill, and mineral rights. Personal and intangible property included in this appraisal's value opinion, if any, is considered typical for this type real estate, yet insignificant to the value opinion. Therefore, non -realty is not itemized or valued herein. Moreover, this report's final value conclusion(s) excludes unaffixed equipment, detached trade fixtures, and chattel unless specifically stated to the contrary. 24-985 Kirkham Appraisals Inc. Page 12 Definition of Market Value The definition of market value is used in all federally regulated transactions that exceed a minimum amount. This definition is mandated by Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989. The exact same definition was published in the Federal Register several times by different federal agencies. Some printings are: 12 C.F.R. Part 34.42(g); 55 Federal Register 34696, August 24, 1990, as amended at 57 Federal Register 12202, April 9, 1992; and 59 Federal Register 29499, June 7, 1994.) Federal agencies publishing the exact same definition include the • Office of the Comptroller of the Currency (OCC) as 12 CFR 34, subpart C • Federal Reserve Board (FRB) as 12 CFR 225, Subpart G • Federal Deposit Insurance Corporation (FDIC) as 12 CFR 323.2, Definition (g) in 55 Federal Register, 33,888 August 20, 1990, Effective September 19, 1990. • Office of Thrift Supervision (OTS) as 12 CFR 564 • National Credit Union Administration (NCUA) as 12 CFR 722 The exact same definition was again published jointly by the OCC, OTS, FRS, and FDIC on page 61 of the "Interagency Appraisal and Evaluation Guidelines ". These guidelines were published in the Federal Register on December 10, 2010 as Volume 55, page 77472. All the above citations defined market value as: "the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition 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 both typically motivated; • both parties are well informed or well advised, and acting in what they consider their own 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 offinancial 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. " Virtually the same definition is also cited in Advisory Opinion 30 in the Uniform Standards of Professional Appraisal Practice (USPAP). 24-985 Kirkham Appraisals Inc. Page 13 Definition of Real Property Estates One or more of the following underlined legal estates or interests are valued in this report. Definitions of three estates, quoted immediately below, are from The Dictionary of Real Estate Appraisal, 6th Edition; published by the Appraisal Institute, copyright 2015. Fee Simple Estate "Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. " Leased Fee Estate "The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires." Leasehold Estate "The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease." The words "Leased Fee Estate" constitute a real estate term. This term is not defined in Black's Law Dictionary, the Deluxe Eight Edition. However, leased fee estate is defined by USLegal.com as: "an ownership interest held by a landlord with the right of use and occupancy conveyed by lease to others; usually consists of the right to receive rent and the right to repossession at the termination of lease." In effect, the definitions of "lease fee estate" by the Appraisal Institute and USLegal.com are equivalent. Chicago Title Insurance Company, one of the largest in the country, does not use the term "Lease Fee Estate" in their title insurance policies. Chicago Title does insure the "Fee Simple Estate Subject to the Leases". For all practical purposes, the terms "Leased Fee Estate" and "Fee Simple Estate Subject to the Leases" are equivalent. Market value of the leased fee estate represents the worth of real property to the landlord (the lessor) as encumbered by terms set forth in one or more leases. A leasehold estate is the tenant's (the lessee's) interest in real property. A lease is an encumbrance because it limits or precludes the landlord's right of use. If a property is unencumbered, then usage of the term "fee simple estate" could be strictly or narrowly interpreted to mean the property is not encumbered by lease. If there are no leases for a multitenant facility, then the building has no lease income. Under this interpretation, the value of the fee simple (VFS) would be less than the value of the leased fee (VLF). Accordingly, the VFS < VLF because lease -up costs must be paid by a buyer to find tenants. In effect, total lease -up cost would constitute a penalty to the property's value imposed by a buyer. Components of a total lease -up cost include leasing commissions, rent loss, concessions, tenant improvements, any other cash expenditures, and buyer incentive to undertake the risk of lease -up. 24-985 Kirkham Appraisals Inc. Page 14 Definition of Real Property Estates According to the Appraisal Institute course General Appraiser Income Approach, Part 2 - page 231, there are two interpretations of the term "fee simple estate". A second interpretation for fee simple estate is a value -oriented definition used by many real estate appraisers. For valuation purposes, market value of the fee simple is the worth of the property assuming it is already leased at market rent to a level of stabilized occupancy. Under this interpretation, the VFS ? VHF because lease -up costs to find tenants are already paid. An extremely important concept in the valuation of leases is the relationship between market rent or income (IFS) and contract rent, the rent stated in a lease (IAF). If the contract rent is below market rent (IAF < IFS), the tenant enjoys an advantageous position called a positive leasehold interest. Then, the value of the leased fee is usually less than the value of the fee simple (VLF < VFS). If contract rent exceeds market rent (IAF > IFS), then the landlord has an advantage while the tenant has an unfavorable position called a negative leasehold interest. When contract rent equals market rent, then the numerical value of these two estates is equal but the rights of each estate are distinctly different. In essence, the difference interpretations for the fee simple estate involve lease -up costs. If fee simple is interpreted to mean no leases encumber the property, then a buyer of a multitenant facility would incur lease -up costs. These cost would likely be substantial so a prospective buyer would penalize the property by the amount of the total lease - up cost, which is detailed above. If fee simple is interpreted to mean the value of real property already leased up to stabilized occupancy at market rent, then no lease -up is necessary so no lease -up penalty is appropriate. For valuation purposes in this report, three estates are defined below. • Market value of the fee simple estate for a single -user property like a one -user building or vacant land represents the worth to the most probable buyer via the sales comparison approach. Income generation on a rental basis is not an important factor to this buyer. Property suitability for the buyer's own use or use control are the primary purchasing criteria. Lease -up costs are not relevant. In this context, fee simple means the property is not encumbered by lease. • The fee simple estate for a multiple-tenantfacility is different from the one immediately above. A different interpretation is appropriate for a building designed to generate real estate rental income like a shopping center or apartment building. This estate for this type property is defined as the worth to the most probable buyer assuming the property is already leased to a level of stabilized occupancy at normal market terms including market rent. Lease -up costs are assumed already paid so a lease -up penalty is not appropriate. • An investment grade, leased, single -user building is best valued in a fashion that is similar to a multiple - tenant property. Hence, the interpretation for fee simple in the immediately preceding paragraph is best for an investment grade, leased, single -user building. • Market value of the leased fee estate is defined as the worth of real property to its current owner as encumbered by terms specified in one or more leases. • Lastly, a leasehold estate is defined as one tenant's interest in real property as defined by a lease. These definitions are crucial valuation concepts in this report. 24-985 Kirkham Appraisals Inc. Page 15 Non -Disclosure State Idaho is a non -disclosure state. This means essential information like grantor, grantee, sale prices and sale dates for real estate transactions are not listed in public records. Hence, appraisers must gather key details from parties involved who have no incentive to cooperate. Often appraisers are compelled to obtain the information from secondary sources. This lessens reliability of the data and lengthens the time required to complete a proper appraisal. Kirkham Appraisals Inc. discloses it made reasonable attempts, within the context of the scope of work, to obtain all key information from seemingly reliable sources; but common sense suggests some data may not be completely accurate. Assemblage USPAP Standard Rule 14(e) requires an analysis of the assemblage of various estates or component parts that affect value. In this case, no assemblage is expected so value is not affected. 24-985 Kirkham Appraisals Inc. Page 16 Disclosures* • • Professional Standards All leading professional appraisal organizations, the U.S. Congress, all state legislatures, and numerous legal jurisdictions recognize the Uniform Standards of Professional Appraisal Practice (USPAP), promulgated by the Appraisal Foundation. Revised biennially to keep it contemporary, these standards set forth ethical practices and proper procedures for a competent appraisal. This appraisal fully complies with all relevant portions of the USPAP version in effect on the report date. It also complies with the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA), a federal law. The report date is shown in the Salient Information. Competency The person signing this report is licensed to appraise real property in the state the subject is located. I affirm I have the experience, knowledge, and education to value this type property. I have previously appraised similar real estate. 24-985 Kirkham Appraisals Inc. Page 17 t. ..� •Aberdeen Rigby "Idaho I-alls - *Animor 15 Blackfoot ori t fall object- Property . 11 :a ovatello � ,rr eI' na F a NIL r + A } I mace L2rjli r' C owe nicr; 0Lati•3 Hot Springs. oesn- Bannock County, 1D 46 Bannock Count}; 1D (16005) Geography; County pnepaned by Esri mermam Fanta ReservaVr b O LOA I r �4 J t 91v 1 II JII J L913 � rrnii i /} C� CabEMG Y 24-985 Kirkham Appraisals Inc. Page 19 oesn- Summary Bannock County, ID 46 Pnepaned by Esri Bannock Caunty, ID (16005) Geography; County Bannock Count... PCpulartion 20141 Population 82,839 20241 Population 87,018 2023 Papulation 89,E 2028 Population 90,474 20141-2020 Annual Rate 0.49% 2020-2023 Annual Rate 0.72% 2023-2028 Annual Rate 0.31% 20241 Male Population 49.7% 2020 Female population 50,3'X0 20241 Median Age 34.7 2023 Male Population 50.4% 2023 Female Papulation 49.6% 2023 Median Age 34.0 In the identifiied area, the current year population is 89,078. In 2020, the Census count in the area was 97,01B. The rate of change since 2020 was 0.72% annually. The five-year projection for the population in the area is 90,474 representing a change of 41.31% ann ually from 2023 to 24128. Currently, the population is 50.4% male and 49.6% female. Median Age The median age in this area is 34.0, compared to U.S. median age of 39.1. Race and E#hnirily 2023 White Alone 83.3% 2023 Black Alone 1.10% 2023 American Indian/Alasl€a Native Alone 3A% 2023 Asian Alone 1.4% 2023 Pacific Islander Alone 0.3% 2023 Other Race 3.3% 2023 Two or More Races 7.2% 2023 Hispanic Origin (Any Race) 9.5% Persons of Hispanic origin represent 9.5% of the population in the identified area compared to 19.4% of the U.S. papulation. Persons of Hispa nic Origin may be of any race. The Diversity Indexr which measures the probability that two people from the same area will be From difFeFent race}ethnic groupsr is 41.9 in the identified arEar compared to 72.1 for the U.S. as a whole. Hoursebands 2023 Wealth index SS 2010 Households 30r682 20241 Households 32,438 2023 Households 33r433 2028 Households 34r298 20141-2020 Annual Rate 0.56% 2020-2023 Annual Rate 0.93% 2023-2028 Annual Rate 0.51% 2023 Average Household Size 2.50 The household Count in this area has cha nged from 32,438 in 2020 to 33,433 in the corn=_nt yea , a change of 0.93% annua Ily. The fivB-area r projection of households is 34,29Br a cha nge of 0.51% annually from the current area r total. Average h ousehold size is currently 2.50, compared to 2.51 in the year 2020. The number of families in the current year is 22,235 in the specified area. bate Hots. ]rimme Is expresud to urrent dollars_ HOUllnp rtftprdmhlllty 1r4ft mind Percent of Ino rrre V Nortl;B9e ca"I bws arc ably avmnatde fa amm with 96 Or more awner-Cocupied h,ousling units. The GIN Index nV*%res Ow # tp w hkh the distribution of Income roc consumption among IrSdividuals or hausehdds within arc ecrosorrry deviates frrfm a peHnecti y equal dllHtuMan. A (Ari intdrx 9F 9 represents perfect equality, while arc Index of 100 Implies perfect Inep uality. Sauree: U$_ C&n La bureau. Esrl Rxecrosls For 2023 and 2429. Esri mnverted Census 2010 Into 2020 geogrephy and Census 2626 data. Q2A23 Esrl December 19, 2423 Page i of 2 24-985 Kirkham Appraisals Inc. Page 20 oesn- Summary Bannock County, ID 46 Prepaned by Esri BannockCaunty, ID (16005) Geography; County Bannod€ Count... Mortgage Income 2423 Percent of Income For Mortgage 27.246 Median Household Income 2023 Median Household Income 563,898 2028 Median Household Income s75,591 2023-2028 Annual Rate 3.42% Average Household Income 2023 Average Household Income 583r449 2028 Average Household Income s97,369 2023-2028 Annual Rate 3.14% Per Capita Income 2023 Per Capita In€ome 531,413 2028 Per Capita In€ome 537,014 2023-2028 Annual Rate 3.33% GIHI Index 2023 Gini Index 39,6 Househohds by Income Current median household income is $63r898 in the area, compared to $72,603 far all U.S. households. Median household income is projected to be 575591 in five years, compared to $82,410 far all U.S. households Current average household income is $133,449 in tris area, compared to $107,008 for all U.S. households. Average household income is projected to be 197,389 in five years, compared to $122,048 for all U.S. households Current per capita income is $31,413 in the area, compared to the U.S. per capita income of 541,310. The per capita income is projected to he 537,010 in five yearsr compared to $47,525 for all U.S. households Housing 2023 Housing Affordability index 90 2010 Total Hcusintg Units 33,191 2010 Owner Occupied Housing Units 20,817 2010 Renter Occupied Housing Units 9,865 2010 Vacant Housing Units 2,509 2020 Total Housing Units 34,903 2020 Owner Occupied Housing Units 21,939 2020 Renter Occupied Housing Units 10,499 2020 Vacant Housing Units 2,455 2023 Total Housing Units 35,949 2023 Owner Occupied Housing Units 22,272 2023 Renter Occupied Housing Units 11,161 2023 Vacant Housing Units 2,516 2028 Total Housing Units 36,678 2028 Owner occupied Housing Units 23,074 2028 Renter Occupied Housing Units 11,224 2028 Vacant Housing Units 2r390 Socioeconomic Status Index 2023 Socioeconomic Status Index 50,8 Currently, 62.0% of the 35,945 housing un its in the area are owner 000upied; 31.0%, renter oompied; and 7.0x% are vacant Currently, in tate U.S., 58.5% of the housing units in the area are owner cooupied; 31.7% are renter occu pied; and 9.13% are 4a€a nt. In 2020r there were34,903 housing units in the area and 7.1% vacant housing units. The annual rate of change in housirtg units since 2020 is 0.91%. Median horse value in the area is $288,957, compared to a median home value of $308,943 forthe U.S. In five years, median value is projected to change by 3.67% annually to 5346r107. Data Hots. ]acme Is expresser in urremt dollws_ HOUling Af1bMiDbillly 1r4ft and Percent of lrimrnre For NartgB9e ta"WiSms arc anly avalletde fix arras with 50 Or more awner-Cotupied h,euslup units. The GIN Index mom# Ow tp whkh the distribution of Income oe consumption anwng Irdividuals Or hauseWds within an ec000rrry deviates firm a pertiei2d y equal dllinSuMan. A (Ari irtdrx ore represents perfect equality, while an index of 100 Implies perfect Inep uality. Sawee: U$_ ffrtcu4 bureau. Esrl kweeasts For 2023 and 2429. Esrl mnver4ed Census 2010 Into 2020 geogrephy and Census 20215 data. Q2A23 Esrl December 19, 2423 Page 2 al 2 24-985 Kirkham Appraisals Inc. Page 21 oesn- r a Profile Bannock County, ID 46 Prepaned by Esii Bannock County, ID (16005) Geography; County Bannock Count.. population Stunmary 2010 Total Population 82,839 2020 Total Population 87,018 2420 G1oupQuarters 2,240 2023 Total population 89,078 2423 Group Quarters 2,240 2028 Total Population 94,474 202 2028 Annual Rate 0.31% 2D23 Total Daytime Papulation 87,162 Workers 36,574 Residents 50,588 Hluasehold Summary 2010 Households 34,692 2010 Average Household Size 2.64 202D Total Households 32,438 2420 Average Household Size 2.61 2023 Households 33,433 2423 Average Household Size 2.60 2028 Households 34,298 202B Average Household Size 2.57 2023-2028 Annual Rate 0.51% 2010 Families 24,836 2410 Average Farrily Size 3..17 2023 Families 22,235 2423 Average Farrily Size 3.13 202B Families 22,814 202B Average Rwrily Size 3.09 2423-2028 Annual Rate 0.52% Housing Unit Summary 2000 Housing Units 29,102 Owner C„coupied Housing Units 66.0% Renter Occupied Housing Units 27.4% Vacant Housing Units 6.6% 2010 Housing Units 33,191 Owner Crooupied Housing Units 62.7% Renter Occupied Housing Units 29.7% Vacant Housing Units 7.6% 2020 Housing Units 34,943 Ovrner Occupied Housing Units 62.9% Renter Occupied Housing Units 30.1% Vacant Housing Units 7.1% 2D23 Housing Units 35,949 Ovrner C€=pied Housing Units 62.0% Renter Occupied Housing Units 31.0% Vacant Housing Units 7.0% 202B Housing Units 36,678 Owner C€=pied Housing Units 62,9% Renter O€cupiad Housing Units 34.6% Vacant Housing Units 6.5% Data Note: Household population includes persons not residing in group quarters. Average Household Size is the household population divided by total households. persons in Families include the householder and persons related to the householder by birthr rnarriager or adoption. Per Capita Income represents the income reoeired by all persons aged 15 years and over divided by the tote I population. SourcLm Esri forecasts for 2023 and 2028. U.S. Census Bureau 2000 and 20141 decennial Census data oonverted by Esri into 2020 eeooraohy. x}2023 IEsd December 19, 2023 Page 1 of 8 24-985 Kirkham Appraisals Inc. Page 22 oesn- r a Profile Bannock County, ID 46 Pnepaned by Esii Bannock County, ID (16005) Geography; County Bannock Caunt.. 2023 Households by Income Household Income Base 33,433 <$15,000 14, 7% 515,004 - 524,999 8.7% 525,000 - 534x999 5.7% 535,004 - x#9,999 11.6°16 S50r000 - 574,999 24,2% 575,004 - 599,999 14,5% 5140,004 - 5149,999 17.9% 5150,000 - $199,999 6,7% 5200,000+ 33°16 Average Household Inoorne $83,449 2026 Hourse,6Mds by Income Household Income Base 34,298 <$15,000 8.2% S15A00 - 524r999 7.4% 525r004 S34r999 4,7% S35r004 S49r999 9,6% 5.5+ =0 574r999 19.6% 575x004 $99r999 15.4% S100r004- $149,999 21,1% 5150r004- #159,999 9,3% 5200r088+ 4.7% Average Household Incorne $97,389 2023 Owner Occupied Housing Units by Value Total 22x272 -:$50,000 7.2% 554x004 - S99r999 4.B% 5140x044 5149,999 7,0% 5150r0()0 ;199,999 6.B% 5204r000 $249,999 12,3% 5250r000 $299,999 15.3% S300r000 $399,999 27.2% S440r000 $499,999 9.4% S504rO00 5749,999 8,0% S750r004 3999,999 1.5% 51,000,000 - $1,499,999 4.4% 51,500,000 - $1,999,999 4,0% 52,000,000 + 4,1% Average Home Value $304,640 2028 Owner Occupied Housing Units by Value Total 23,074 <$50,000 4,13°16 S50r004 - S99r999 2.B% 514i]r000 5149,999 3,1% $15Dr004 3199,999 1,13% 52UDr000 5249,999 5.9% S250r000 5294,999 143°16 &304x000 5359,999 36,3% S400r000 $499,999 16.2% S5D0r000 - 5749,999 12.2% 57.50r0(10 - 5959,999 1.5% 51,000,000 - $1,499,999 4,4% 51x500,000 - $1x999,999 6,0% 52, 000, 000 + 4.1% Average Home Value $361,076 Data Notee Income represents the preceding year, expressed in cuiTent dollars. Household income includes wage and salary eamingsr interest dividends, net renter pensioner SSI and welfare paymentsr child support, and alimony, Sourcw Esri forecasts for 2023 and 2028. U.S. Census Bureau 2000 and 20141 decennial Census data converted by Esri into 2020 ee,ae iaohy. x)2023 IEsd December 19, 2023 Page 2 of 8 24-985 Kirkham Appraisals Inc. Page 23 F04AMM warket Prc (9)2023 Esri December L9, 2023 Page 3of8 24-985 Kirkham Appraisals Inc. Page 24 Bannock County, Id 46 BannockCaunty, Id (15005) Geography; county Prepaid by Esii Bannock Count.. Median Household Income 2023 $63,898 2028 $75,591 Median Home Value 2023 $288,957 202B $346,107 Per Capita Income 2023 $31,413 2028 $37,010 Median Aye 2010 31.5 2020 34.7 2023 34.0 2028 34.3 2020 Population by Age Total 87,018 0 - 4 6.6% 5-9 7.4% 10-14 7.7% 15-24 15.396 25-34 13.596 35-44 13.0% 45-54 10.2% 55-64 11.0% 65-74 9.6% 75 - B4 4.3% 85+ 1.596 1 B + 74.0% 2023 Popdatian by Aye fatal 89,078 0-4 7.4% 5-9 7.3% 10-14 7.1% 15-24 14.9% 25-34 14.796 35-44 13.096 45-54 9.696 55 - 64 10,B96 65-74 9.296 75 - B4 4.4% 85+ 1.696 1 B + 74.2% 2028 Popdatian by Aye Total 90,474 0 - 4 7.5% 5 - 9 7.2% 10-14 7.0% 15-24 15.1% 25-34 13.5% 35-44 13.3°16 45-54 10.3% 55 - 64 9.6% 65-74 9.2% 75 - B4 5.5% 85+ I.B% 18 + 74.5% 202.0 PaPUlation by Sex Sourcee Esri fnrecastr. for 2023 and 2028. U.S. Census Bureau 2000 and 2010 decennial Census data canverud by Esri into 2020 neaarwhx (9)2023 Esri December L9, 2023 Page 3of8 24-985 Kirkham Appraisals Inc. Page 24 I� Warket Pre Bannock County, ID 46 Prepared by Esri Bannock Ccunty, ID (16005) Geography; County Bannock Count.. Males 43,211 Females 43,807 2023 Population by Sex Males 44,930 Females 44,148 2028 Population by Sex Males 45,581 Females 44,893 2010 Population by Race/Etlinf ty Total 82,839 White Alone 893% Blade Alone 03% American Indian Alone 3,2% Asian None 1.3% Pacific Islander Alone 4.2% Some Other Race Alone 2.1% Two or Ma -e Races 2.7% Hispanic Origin 6.7% Diversity Index 29.3 2020 Popdat m by Race/Ettrnicity Total 87,018 White Alone 833% Black Alone 0.9% American Indian Alone 3.6% Asian Kane 1.4% Pacific Islander Alone 0.31Y6 Some Other Race Alone 3,2916 Two or More Races 6.9% Hispanic Origin 9.2% Diversity Index 44.9 2023 Po.pdatian by RacefEtirnicity Total 89,078 White Alone 83.3% Blade Alone 1.0% American Indian Alone 3,4% Asian Alone 1,4% Pacific Islander Alone 4.3% Some Other Race AJone 3.3% Two or More Races 7,2116 Hispanic Origin 9.5% Diversity Index 41.9 2028 Popriation by Racef Ettrnicity Tatal 94,474 White Alone 82.1% Black Alone 1.1% American Indian Alone 3,3% Asian None 1.5% Pacific Islander Alone 4.4% Same Other Race Alone 3.6% Ttvo or More Races 8,0% Hispanic Origin 10.1% Diversity Index 44.0 Data Note: Persons of Hispanic Origin may be of any race. The Diversity Index measures the probability that two people From the same area will be from different ra€eiethnir groups. Source: Esri forecasts for 2023 and 2028. U.S. Census Bureau 2000 and 20141 decennial Census data converted by Esri into 2020 aeag raphy. December 19, 2023 x}2023 Esri Page 4 of 8 24-985 Kirkham Appraisals Inc. Page 25 Oesn- r a Profile Bannock County, ID 46 Prepaned by Esii Bannock County, ID (16005) Geography; County Bannock Count.. 2020 Population by Relationship and Household Type Total 87,018 In Households 97.4% Householder 37.3% Opposite -sex Spouse 18.2% Same -Seat Spouse 4.2% Opposite -Sex Unmarried Partner 2,7% Sara a -Sex Unmarried Partner 4.1% Biological Child 28.1% Adopted Child 0.13% stepchild 1.7% Grandchild 2.2% Brother or Sister 0.9% Parent 4.7% Parent -in-law 4.2% Son-in-law or Daughter-in-law 4.4% Other Relatives 0.9% Foster Child 0,1% Other Nonrelatives 3.1% In Group Quateis 2.6% Institutionalized 1.0% Noninstitubanalized 1,5% 2023 Population 25+ by Educational Attainment Total 56,311 Less than 9th Grade 1.3% 9th - 12th Qader Na Diploma 5.0% High School Graduate 22.6% GED/A ternative Credential 4.5% Some College, No Degree 22.9% Associate Degree 11.9% Bachelor's Degree 21.5% GraduaWProfessional Degnee 14.3% 2023 Popuiatian 15+ by Marital Status Total 69,623 Neuer Married 30.2% Married 53.5% Widmved 5.2% Divorced 11,2% 2023 Civilian Population 16+ in Labor Force Civilian Popukation 16+ 40,014 Papulation 16+ Employed 96,8°16 Papulation 16+ Unemployment rate 3.2% Population 15-24 Employed 19.2% Population 16-24 Unemployment rate 5,7% Population 25-54 Employed 63,6% Population 25-54 Unemployment rate 2.5% Population 55-64 Employed 13.1% Population 55-64 Unemployment rate 2.5% Population 65+ Employed 4.1% Population 65+ Unemployment rate 4.4% Sourcw Esri forecasts for 2023 and 2028. U.S. Census Bureau 2000 and 20141 decennial € anus dai3 converted by Esri into 2020 geag raphy. December 19, 2023 x}2023 Esri Page 5 of 8 24-985 Kirkham Appraisals Inc. Page 26 oesn- r a Profile Bannock County, ID 46 Prepaned by Esii Bannock County, ID (16005) Geography; County Bannm& Count... 2023 Employed Population 16+ by Industry Total 36,735 AgncultuiWMin ing 1.5% Construction 6.13% Manufactuiing 7.9% Wholesale Trade 1.3% Retail Trade 10,2% Transportation{Utilities 6.5% Information 1.2% Finance}Insurance/Real Estate 8,5% Services 49.5% Public Administration 6.0% 2023 Employed Population 15+ by Occupation Total 313,739 White Cellar 99.3% Managernent[Busi nes--/Financial 13.7% Professional 25.6% Sales 8.4% Administrative Support 11.646 Services 18.8% Blue Collar 21.9% Fanni ngf Forestry/Fishi ng 0.346 Canstiuction/Extlacton 5.046 Insb IlationJMai ntenance/ Repair 3.1% Production 9.446 Transportation{Material Moving 8.146 2420 Flouseholds by Type Total 32,438 Married Couple Households 49.246 With Own Children <IS 20.7% Without Own Children <1S 28.44'0 Cohabitating Couple Households 7.446 With Own Children <IS 2.6% Without Own Children <1S 4.8% Male Hou5ehioldei, No Spouse/Paitrrer 19.046 Living Alone 12.6% 65 Years and over 31% With Own Children <IS 1.946 Without Oven Children <18, With Relatives 2.5% No Relatives Present 1.6% Female Householderr No Spouse/Paitrrer 24.4% Living None 14.146 65 Years and over 6.4% With Own Children <18 4.9% Without Own Children <1S, With Relatives 4.7% No Relatives Pi -sent 1.246 2024 Households by Size Total 32,438 1 Person Household 26,9% 2 Person Household 33.6% 3 Person Household 14.5% 4 Person Household 11.7% 5 Person Household 7,0% 6 Person Household 3.8016 7 + Person Household 2.5% Sourcw Esn forecasts for 2023 and 2028. U.S. Census Bureau 2000 and 20141 decennial Census dat3 converted by Esri into 2020 oeaq iaphy. December 19, 2023 x}2023 Esd Page 6 of 8 24-985 Kirkham Appraisals Inc. Page 27 oesn- r a Profile Bannock County, ID 46 Pnepaned by Esii Bannock County, ID (16005) Geography; County Bannock Count.. 2020 Households by Tenure and Mortgage Status Total 32,438 Owner D=pied 67,6% Owned with a Mortgage clan 46,2% ONmed Free and Clear 21.4% Renter Occupied 32.4% 2023 Affordability, Mortgage and Wealth Housing Affordability index 90 Percent of Income for Mo itgag a 27.2% Wealth Index 68 2020 Housing Units By Urban/ Rural Status Tatal 34,903 Urban Housing Units 833% Rural Housing Units 16.2% 2020 Population By Urban/ Rural Status Total 87,018 U0ban Population 83.0% Rural Papulation 17.0% Data Note: Households with children include any households with people under age 18, related or not. Multigenerational households are families with 3 or more parent-child relationships. Unmarried partner households are usually classified as nonfamily households unless them_ is another member of the household related to the householder. Multigenerational and unmarried partner households are reported only to the tract level. Esri estimated black group dat3r whkh is used to estimate polygons or non-standard geography. Sourcee Esri forecasts far 2023 and 2028. U.S. Census Bureau 2000 and 201D decennial Census data converted by Esri into 2020 cieag raphe. December 19, 2023 ?2023 tsri Page 7 of 8 24-985 Kirkham Appraisals Inc. Page 28 oesn- r a Profile Bannock County, ID 46 Prepaned by Esri Bannock County, ID (16005) Geography: County Bannock Count.. Top 3 Tapestry Segments 1. Set to Impress (LLD) 2. Middleburg (4C) 3. Dad and Neavcamers (9F) 2023 Consumer Spending Apparel & Services: Total $ $59,317,392 Average Spent $1,744.31 Spending Potential Index 79 Education; Total $ $45,323,19B Average Spent $1,355.64 Spending Potential Index 76 Entertainment{Recneation: Total $ $99,636,547 Average Spent $2.9B0.19 Spending Potential Index 79 Food at Home: Total $ $179,059,626 Average Spent $5,355.78 Spending potential Index 79 Food Array from Home: Total $ $98,656,968 Average Spent $2,950.89 Spending Potential Index 79 Health Care: Total $ $196,554,092 Average Spent $5,B79.04 Spending Potential Index 80 HH Furnishings & Equipment: Total $ $77,834,043 Average Spent $2,328.46 Spending Potential Index 79 Personal Care Products & Seivices: Tatal $ $25,482,532 Average Spent $762.20 Spending Potential Index 80 Shelter: Total $645,831,197 Average Spent $19,347.09 Spending Potential Index 7B Support Payments/Cash Qantri6utions} in Kind: Tatal $ $82,B70,21B Average Spent $2,478.70 Spending Potential Index 79 Travel: Total s $58,589,717 Average Spent $1,752.45 Spending potential Index 78 Vehicle Maintenance& Repaiis: Total $ $35,676,492 Average Spent $1,067.09 Spending Patential Index 81 Data Note: Consumer spending shows the a mount spent on a variety of goads and services by households that reside in the area. Empend itures are shown by broad budget categories that are not mutually e�odlusive. Consumer spending does not equal business reven ue. Total and Average Amount Spent Per Household represent annual figures. The Spending Potential Index represents the amount spent in the area relative to a national average OF 100, Sources Consumer Spending data are derived from the 2019 and 2020 Consumer Er:penditure Surveys, Bureau of Labor Statistics. Esri. Sources Esri forecasts for 2023 and 2028. U.S. Census Bureau 2000 and 2010 decennial Census data oonverted by Esri into 2020 eeaa raohy. x}2023 Esd December 19, 2023 Page 8 of 8 24-985 Kirkham Appraisals Inc. Page 29 Environmental Issues A visual inspection of the property did not reveal any apparent environmental issues or concerns. While the appraiser has inspected the subject property, he is not qualified to detect hazardous substances whether by visual inspection or otherwise, nor qualified to determine the effect, if any, of known or unknown substances present. The final value estimate is based on the subject being free of hazardous waste contamination. Parties desiring more precise and reliable information may wish to engage a professional environmental consultant to conduct an environmental assessment. Should such assessment indicate an adverse condition is present that has not been addressed by this appraisal; the conclusion of this appraisal may need revision. General Area Data and Trends The cities of Pocatello and Chubbuck are located close together in southeast Idaho in a valley surrounded by mountains on three sides. The cities are at an altitude of 4,450 feet in the western foothills of the Rocky Mountains near the Oregon Trail. One main railway, Interstate 86, Interstate 15, and the Portneuf River intersected the city. The southeastern area of Idaho was inhabited by the Shoshone and Bannock Indian tribes for hundreds of years prior to the Lewis and Clark expedition in 1805. It was the Lewis and Clark reports of that expedition that first attracted fur trappers and traders to southeastern Idaho. One of the first permanent settlements was established by Nathaniel Wyeth of Massachusetts a few miles northeast of Pocatello at Fort Hall in 1834. After over -trapping and changes in fashion ended the fur trade, Wyeth's settlement became a stopping point for immigrants traveling the Oregon Trail. It was not until after the discovery of gold in Idaho in 1860 that immigrants began settling in Idaho in large numbers. The gold rush had brought a demand for goods and services that supported the establishment of towns. The Portneuf Valley and Pocatello area became the corridor that was initially used by freight shipping and stage lines. After the gold rush ended, the settlers who remained in the Pocatello area turned to agriculture as a means of support and the nearby Snake River provided ample irrigation water for crops. The region eventually became a major supplier of potatoes and grain products. The city was named for Chief Pocatello of the Shoshone tribe who gave the railroad a right-of-way through the original Fort Hall Indian Reservation for a line that connected Salt Lake City, Utah to Butte, Montana. Initially, the Utah and Northern Railroad stopped for water in the Pocatello Creek area. Then, with the arrival of the Oregon Short Line in 1882, the area became a junction and transfer point between the two railroads. In 1887, the Oregon Short Line moved its offices to the Pocatello Junction and the two railroads merged, creating a large repair and maintenance facility. In 1888, an Executive Order ceded 1,840 acres of Indian land to establish the city of Pocatello. The Pocatello/Chubbuck area has a four -season climate that was sunny and dry with less than fifteen inches of precipitation annually. Summers were dry and warm with cool nights and an average temperature in July of 72 degrees. The winter temperatures averaged thirty-five degrees with several months of snow. According to The US Census bureau, as of April 2010, Pocatello's population was 54,255 persons: a 5.29% increase from the 2000 census. 13,922 reside in the neighboring town of Chubbuck, Idaho. Chubbuck experienced 43.35% growth between 2000 and 2010. The total population for Bannock County was 87,018 persons living in 1,112 square miles in 2020. The growth for Bannock County between 2010 and 2020 was, overall, 5.04%. The county is population is reported at 89,078 persons as of 2023. The cost of living in Bannock County was well below the national average for groceries, housing, utilities, and transportation. The median priced home in Bannock County reported at $225,283 in 2022; apartment rents were from $400 to $2,200 per month. The chief sources of income in Pocatello/Chubbuck and the nearby trade area was manufacturing, mining, transportation, agriculture, medical products, processing of agricultural products, high-tech and nuclear research, recreation and tourism. 24-985 Kirkham Appraisals Inc. Page 30 UMM M.11 III Idaho Central Credit Union PorfieufMedicalCentar Aspire Human Services LLC ON Sem iconducto-r, Inc. Contiergys Cusiamer Wriagemen Union Pacific Railroad Allstate Ins uranceCc VarsityContractars Am Kitchen Inc_ Veal-Nbrt Regional industry also included the Idaho National Laboratory (INL) which was located 60 miles northwest of Pocatello/Chubbuck. Built in 1949, the site had more than 50 nuclear reactors and employed approximately 12,000 individuals. The years between 1970 and 1990 brought recessionary times to Pocatello's older downtown business district. However, in the decade of the 1990's, the older downtown area underwent restoration and revitalization efforts, with the result that numerous small or specialty retail stores and a number of new restaurants relocated in the central downtown area. It was during those recessionary times that Yellowstone Avenue gradually underwent commercial development. Over the ensuing years, the primary areas of expansion and new development on Yellowstone Avenue occurred in the north Pocatello and Chubbuck portions of this major arterial highway. That growth continued, and Yellowstone Avenue became the prime retail commercial center of the city with many newly developing areas that contained retail and service facilities, fast food facilities, restaurants, and the major automobile sales/service establishments. The Pine Ridge Mall, Wal-Mart, and Fred Meyer superstores, as well as, the commercial Pocatello Square subdivision, provided the central focus for the continuing development of new business and expansion on Yellowstone Avenue. Pocatello/Chubbuck offered excellent health care services and facilities. The Portneuf Medical Center was formed when two area hospitals consolidated in 2002. The facility was designated as a Level Three Trauma Center and housed a Life Flight helicopter. Portneuf Medical Center had recently added open heart surgery to its services. Idaho State University (ISU) was among the fastest growing of the four academic institutions of higher education in the State of Idaho. Approximately 13,569 students were enrolled in the 124 Baccalaureate, 50 Masters and nine Doctoral programs. ISU had an outstanding School of Applied Technology that was the largest post -secondary technical institute in the state of Idaho, providing technical and career -oriented educational opportunities. The city of Pocatello has a newer library, 32 parks, two public golf courses, a swimming complex and small zoo, and a Museum of Natural History located on the ISU campus. The city of Chubbuck has a library and numerous parks. The neighborhood is a mix of residential, commercial, and light industrial properties. The market suffered declining values from 2008 to 2011 and stabilized in 2012. The market has increased since. The market has been expanding for several years now. A sharp contraction in the economy occurred in March and April of 2020 with the COVD Pandemic. An expansion occurred shortly after. Drastic inflation and interest rate hikes to fight the inflation could send the economy into a recession within the next 12 months, and has already caused a slow -down to real estate activity. It is possible interest rates may begin to decline in the next several months if inflation continues to ease as it has over the past several months. These interest rate declines could spur some real estate activity. 24-985 Kirkham Appraisals Inc. Page 31 NEW- -7 do ft �i op Bannock County Economic verview Oivllian Labor Force (Dec 2023) 46,209 Unemployment Rate (Dec 2023) 3.296 Population (2022) 89,517 Median Household Income (2021.) $58,472 Per G9 pita Personal Income (202 2) $47,457 Poverty Rata (2021) 12.7% Last Updated: January 2Q24 A pr�„W partnproflhr Idaho Deparkrnent of Labor : l bor.i �a o. o csin*m, amertnjobceater nn twni k Thr IdOv 1rpar1m4nt al Lahar it an aqua) opporuntp aap9o-pr and urrrca pra,idrr. 4uunahla iccommada0 rnr Mr irrlatif upon eoqu+st Gil Ill lar Idrha Wap 59,,-u. 24-985 Kirkham Appraisals Inc. Page 32 Market Delineation: According to Market Analysis for Real Estate Second Edition page 534, "A market area is defined by the specific use or uses of the property and the users it is likely to attract. The tenants and clientele who constitute the demand for the mix of uses in the subject tract will not all be drawn from areas with identical boundaries. Available data often have to be adjusted to correspond to the market areas defined by the location of property users." The market area is the physical area where similar properties effectively compete. It can also be envisioned as the area that contains all the primary competition, and in certain cases, some secondary competition. Market areas may contain one or more neighborhoods, districts, cities, counties, or states. Market Area Boundaries North Bannock County East Bannock County South Bannock County West Bannock County Demographics Physical Area Bannock County Recent Population Level About stable near 89,517 Household Income About stable near $56,472 Local Unemployment Physical Area Bannock County Recent Pattern Mildly declining Approx. Current Percent 3.2% (Bureau of Labor Statistics) Financing (for real estate like subject) General Loan Availability Ample availability; requirements mildly difficult Interest Rate Range 6.00% to 10.00% Typical Loan -to -Value Ratio 70% to 75% Typical Amortization Years 15 to 20 years Loan Maturity / Balloon 5 years 24-985 Kirkham Appraisals Inc. Page 33 Nearby Land Uses Single -Unit Residential Multiple -Unit Residential Retail / Commercial Office Industrial Agriculture Vacant Land Other Total 0% 0% 5% 0% 5% 10% )0% Other Description: The subject property is located along the south side of New Day Parkway bordered by the railroad on the west side. The area has been developed with medical uses, office uses, residential uses, and industrial uses. The subject property is located within 0.90 miles of the Northgate I-15 Interstate Interchange. 24-985 Kirkham Appraisals Inc. Page 34 Proximity Features Expected Change in Economic Base The area is growing, with 1% growth in population and households over the past several years expected to continue. Protection from Adverse Conditions Average Demand for Real Estate Like Subject Moderate Building Age Range 0 to 80 Years Oversupply of Property Like Subject Eastern Idaho has a large amount of land on the market. General Appearance of Property Average Location Average, Suburban Land Use Change Unlikely Police and Fire Protection Average Expressway Access Average Employment Centers Under 1 mile Property Compatibility Average Overall Appeal to Market lAverage Nearby Land Uses Single -Unit Residential Multiple -Unit Residential Retail / Commercial Office Industrial Agriculture Vacant Land Other Total 0% 0% 5% 0% 5% 10% )0% Other Description: The subject property is located along the south side of New Day Parkway bordered by the railroad on the west side. The area has been developed with medical uses, office uses, residential uses, and industrial uses. The subject property is located within 0.90 miles of the Northgate I-15 Interstate Interchange. 24-985 Kirkham Appraisals Inc. Page 34 Pocatello/Chubbuck Residential Market Analysis Physical Area Foreclosures & Short Sales New Construction Pocatello/Chubbuck Shrinking portion of all sales Increasing An Abstract of PocatellofChubbuck MLS Reported Single Family Detached Sales YEAR total sales reported Avg Value Annual %-Chng Med DOM % of Asking Total Ann Sales $ Median Price $ 2013 809 151.336 # 'RE F! 8v 97.29 122,431,489 135.000 2014 841 156.739 1.07 •5 93 97.87 131,817,906 136.450 2015 960 157.490 1.65�� 78 97.82 151,190,603 138.700 2018 1 1.002 188.127 1.80� 70 98.51 1 166,459,388 141.200 2017 1.030 168.578 4.11�� 61 98.74 173,636,209 147.000 2018 989 196.175 15.50% 52 99.21 194,018,001 169.900 2019 981 214.388 10.06% 50 99.42 210,293,114 187.000 2020 988 246.937 18.59% 50 99.53 243,974,548 221.771 2021 1.088 1312.841 1 26.26% 42 1100.00 339,746,105 280.000 2022 1 922 1374.6421 17.86% 1 50 1 99.28 1 345,420,388 330.000 2023 1 747 1378.6331 3.03 •5 1 58 1 98.77 1 282,839,568 340.000 Median dome Pr Iles C6 2-50,000 20D,OM 150,OW 100,1000 2016 1 2011 1 2018 1 2019 1 2020 1 2021 1 2022 1 2023 Seriesi 1141,20 1147,00 1169,90 1187,00 1221,77 1280,100 1330,00 34-0,00 In real estate, average sale price is often greater than the median. If the ratio of the average sale price to the median price (shown in last column) significantly changes from prior periods, the distribution of sales may be the real cause of the price change, and not true price appreciation or depreciation. Further analysis is necessary. Expected Near Future Price Could decrease with increase in interest rates Change Overall Supply & Demand Near equilibrium of Housing 24-985 Kirkham Appraisals Inc. Page 35 Real Estate Like Subject (Commercial and High Density Residential Land) Sales Market New Construction Inventory of Competing Property for Sale Expected Near Future Price Change Marketing Times Overall Market Conditions "MI Some Could Decline with Rising Interest Rates, and a possible recession. Stable Fairly Stable with a possible recession forecast for 2024 The residential market had seen increases in median and average home values since 2011. 2021 and 2022 have brought large increases in value to residential properties. Interviews with agents in the market area indicate there was a shortage of supply for residential homes, which fueled the current residential value growth. New construction starts have increased since 2014 and are expected to continue their increases over the next several years. The federal funds rate for May of 2017 was 1.0%, and went to 0% during the pandemic, and has since increased to 5.25-5.50%. The increase in the federal funds rate has had a significant effect on mortgage rates and real estate activity has slowed. Pocatello's commercial growth has consisted of major retail chains including Costco, Dick's Sporting Goods, and Winco, along with several new restaurants that have been constructed mostly along Yellowstone and East Center Street over the past several years. The main growth in Pocatello and Chubbuck over the past several years has been in high density residential developments and smaller commercial developments in Chubbuck, North Pocatello, and the University area. 24-985 Kirkham Appraisals Inc. Page 36 Regional Commercial Market Data Average Price (Commercial Land Listings) S800.coo $753,377 S�OO,000 � Seaa.000 � Ssoa,000 Sa00800 $372,221 $377,754 d $290,969 5300.800 $200.U00 5100.800 50 Ada County Canyon County Eastern Idaho Southern Idaho Demand Supply Prices DOM* Mv.Grap days on market far nein+ residential construction in Ada and Canyon counties_ Based on the most recent available monthly reports frarn IMLS_ Colliers International of Idaho indicates that demand for commercial land is remaining declining, supply is decreasing, and prices are currently decreasing. The average list price per acre for commercial land in Eastern Idaho where the subject is located, is just below $377,754 per acre or $8.67 per square foot. The acreage of commercial land listings decreased in Eastern Idaho compared to the last quarter. Southern Idaho and Canyon County currently have the most commercial land listed with 2,180 acres and 3,356 acres available, respectively. 24-985 Kirkham Appraisals Inc. Page 37 Highlights ■ The Idaho Palls Regional Airport Is cominumg m upgrade In are effort to offer 'e+ffiaerg and premier orave3 akpmlelxe5" iocustomers and supporte€Momlc gam" In Indk*regon. • Invesl:aa ImeresT In lnultlfarrnty projects Is pdc3InL9 agarm Waga prole=, rhli i) arelaeges€ale, mvRl-use bulldlregsdntuAing a ml;c of recall, Tesldernial and office space are cmperiefw6ng a sdFg)e In papularlcy. r vaceaty$atceepp 2,350,774 735,+476 r hletAleso4-pmn J a RsieajF36) ete ' B.nghar.. =75,752 9,30G XZ750 7-=43 39G 10 T—n Fs:is :27283' 13.311 A o D ► TOTAL 2,TAX093 1F Ea5lerrl a - 6 M753 43W2 a 1Q854 21487 Vt""Rate 1ri0 IIII Ne[ArbunFition V Dire" AidingLeste RttesiFSGy CIAA ► MfEtAST -21r 1229F fo,16.sT 11 4.92ci tL#tLLcs1 A F 1 Overview The economy is stable in Eastern and Southern Idaho- The labor marketin Idaho overall i5 growim from November 2022 to November 2025, employment increased by 4.2% in Idaho Falls and 5.8% in the Pocatello MSA. In Twin Falls, employment decreased by 10.496. Vaca nt=y & Absorption This quarter, vacancy increased slightly in bath Southern Idaho anti Eastern I-laho, Absorption decreased in bath markets-, by 24r122 sq_ ft in Eastern ldaho and 1 r254 sq_ ft in Southern Idaho_ Asking Rate This quarter, asking rates decreased in both Southern and Eastern Iciafla. Since last gUarterr they were down 9.7% in Southern Idaho and 2.2% in Eastern Idaho_ With a US national average cost 0f $8.00-23.00 square font in similarly -sued markets, Eastern and Southern Idaho remain appealing with an average cost of $14.82 per square foot in Eastern Idaho and $17.59 per square foot in Southern Idaho. cassia 2,350,774 735,+476 r ace o a 37239 51310 B.nghar.. =75,752 9,30G XZ750 7-=43 39G 10 T—n Fs:is :27283' 13.311 G-773.986 24AN o D 51 R.as TOTAL 2,TAX093 13„61 I __ _ _s- = i I' a - 6 M753 Banat k 2,350,774 735,+476 IQ%23t -D,176 4&_]M 11 a 51310 B.nghar.. =75,752 9,30G XZ750 7-=43 39G 10 0 5,.5G Eo- rn ille G-773.986 24AN 34.146 ZM4 85~761 6 50,x5+ 51720 TOTAL I 77&7M, 747,734 Ava 43W2 a 1Q854 21487 24-985 Kirkham Appraisals Inc. Page 38 Overview New stores contlnue to open throughout Eastern and 5otithern Idaho, and vacancy remains low rn bath markets_ Yearly net ab5orj�tian is pas itive to Eamem Idaho and negative in Southern Idaho. Asking rates are holding steady in southern Idaho and increasing in Eastern Idaho. Vacancy & Absorption Vacancy remained low this quarter. At 2.1 % in Eastern Idaho and 1.6% in Sout11errl Idaho, it dropped its markets that are well below the national average of 16.3%_ Since the start of the year, occupied square footage has remained relatively steady to bath markets_ Asking Rate Asking rates increased this quarter in Eastern Idaho, up 4-3% from last quarter, and remained steady in Southern Idaho. [asI,a3%&r. larorer 3rrn Folks 147E'ij 7362.077 - Highlights 4,X-- 0 24.100 . - .. .. TWAL J4!alrr[h Staltr,,tks lorationjustannulnced tt was'wming snort' m rale L1n= is$8T6 Imam 29+975 1n Twin Fal EL. dnarW 3,0y'd3J The Idaho Falls Parks and R,erreadw Department rs searchi ng for enue-preneui s lIK331 24,M Tin run and operate 3 cafes art The Idaho Falls mania pa I Gal( courses. A regt,en ror dnglrarn 7,2Bfi pn4osads trasbeen assued for Me operation Df the cafes fram yews 2024-2AQ5. 21,772 4 A.Ic[al waFnvin has opened Soul Sister Float Therapy In Rlgty at 255 Farnsworth Way, wick me goal of pr{NIdIng a felaxin 5ensory4e l%farlonTherapy rn the czmrrunity. Trw Paratello Continunay Recreation Censer has broken ground on a 313 r dollar expanslccl protea ra add aver 3,006 square feet of indoor spare and a neh welghs roam io-zhe center. LI, r VAcarrry Ute ''- ( T j� Het Absorption Dirtet A-41dmg Lease A Ii (N NN I Go ( VI�ll� T F Eastern Vlcartcy riots DW TpIIfIII Nt•tAWOrptisn ars Ditto Al king Leade at A6 Ram-A(NNNF A r n �� F cul 25.596 .F Fur.Ecur Overview New stores contlnue to open throughout Eastern and 5otithern Idaho, and vacancy remains low rn bath markets_ Yearly net ab5orj�tian is pas itive to Eamem Idaho and negative in Southern Idaho. Asking rates are holding steady in southern Idaho and increasing in Eastern Idaho. Vacancy & Absorption Vacancy remained low this quarter. At 2.1 % in Eastern Idaho and 1.6% in Sout11errl Idaho, it dropped its markets that are well below the national average of 16.3%_ Since the start of the year, occupied square footage has remained relatively steady to bath markets_ Asking Rate Asking rates increased this quarter in Eastern Idaho, up 4-3% from last quarter, and remained steady in Southern Idaho. [asI,a3%&r. larorer 3rrn Folks 147E'ij 7362.077 +7,527 -.IU 14S.00 155,521 '.I95 169.974 4,X-- 0 24.100 . - .. .. TWAL %9471 is$8T6 Imam 29+975 '-2C" dnarW 3,0y'd3J 119+804 lIK331 24,M 55,90- dnglrarn 7,2Bfi 21,N7 21,772 4 4 Asking Rates for the commercial properties for Eastern Idaho can be found above and was extracted from Colliers International Idaho Market Research & Forecast Report. These asking rates are fairly stable from the prior quarter. 24-985 Kirkham Appraisals Inc. Page 39 Conclusion The market area has grown over the past couple of years at a slightly slower rate than Boise and Idaho Falls. I would expect extended marketing times and a possible decline in land values in the area with economists predicting a recession in 2024-2025 is possible, but the area is predicted to continue its steady growth of approximately 1% yearly, which will continue its demand for both commercial and residential developments. 24-985 Kirkham Appraisals Inc. Page 40 Subject Property e * . Identification of the Property The real estate appraised is situated at the on the south side of New Day Parkway about 550 west of Whitaker Road. Since the subject property consists of just vacant land, it does not have a common address. Legal Description A professional surveyor and / or legal counsel should verify the following legal description before relying upon, or using it as part of any conveyance, or any other document. This legal description was obtained from public records and is assumed accurate. To Be Determined 24-985 Kirkham Appraisals Inc. Page 41 Aerial View Aerial Map { .15 = low r_ I {ano-.pit r C2024 Aad4 �y p q�� 9aundary Center:42.93456d, -112.459976 aft 1358 2698 11� kJh III 1 F F F 3 -6s -34E D` D M!PRABannock County W _- P r '.1.F. P..rc Wrt Idaho D, o �na�u he mza x*R WA:r��t�,. 3�'11'2CF4 24-985 Kirkham Appraisals Inc. Page 42 Soils Map Soils Map Shcs data protitlded 4 USDA and NRCS. 35 ms State= Idaho Sol County: Bannock Percent Location: 3 -6S -34E Septic Township: Pocatello Soi Acres- 2.05 Irr Bate: 311112024 Barley Irish Paswre wnwwan72� Wheat ��pr e�nrd�d er N Wsuretyxw - P. {vf.pw��� �IILIr• wy.ry♦ CAWDm Nc me x.w A�;7i.'.', : -,� Units Area SyrW: I Q711, &A Area Version: 18 Code Sol Awes Percent Restnuiue Septic Foundation Soi Non- Irr AdFan Barley Irish Paswre Sugar Wheat ❑esu pimn of fidd Layer Units Limits Drainage Irr Class hay Iniga•ed pmkoes Irrigated beets IrrigaoK Class IrrigAed Bu Irrigated AUM lrngat=d Bu Tars Cwt Tars 7 Bahemsilt 2.175 100-0% >$-5ft. Sorrewhv notlirnihed Well Vlc WE 5 101 270 12 29 kwn,0to2 limied draied P --A 51Ppe5 Weighted Average I 6.00 1 3.00 5 10U 270 1 12 20 'n: The aggregation method is "Weighted Average using al l wrnpcnerrts' W06M pr kledby UBDhwd NR{S. 24-985 Kirkham Appraisals Inc. Page 43 Topography Map Topographer Hillshade i I r 1 J, I �� i�lslow 41F 45 --�= 1 Fid -.tea . P F 5i�hc.n-Rr. Law Elevation High i Wg�yret,y a A7nGau rr 20}a w.wAA421A,-- 1 Source= USGS 1 D meter dem Rnterval(ft): 1 Min_ 4,473-3 Max- 4,417-6 Range: 4-3 Average= 4,474A Standard Deviation: 1-3d ft PUCa�o-S#-S# r DR 137ft 274ft H' Y. 3 -6S -34E Bannock t3annock Country W1112024 Idaho Boundary Center. 42.934568, -1 12-451D 1 741 24-985 Kirkham Appraisals Inc. Page 44 Photographs of Subject (photo page 1) Subject Street Subject Street 24-985 Kirkham Appraisals Inc. Page 45 Photographs of Subject (photo page 2) Subject Subject 24-985 Kirkham Appraisals Inc. Page 46 Photographs of Subject (photo page 3) Subject :A Subject ■ 24-985 Kirkham Appraisals Inc. Page 47 Sale History On-line public records and / or a private data -reporting service were used to search for prior sales of the subject real estate. This research discovered no recorded conveyance of the subject during the three -years preceding this report's effective value date. The assessor's office indicated the property did not convey. Moreover, the subject was not offered "For Sale" in the local MLS or other major data -reporting services during this same period. No sale or option agreements are now pending. Flood Hazard According to the appropriate Federal Emergency Management Agency (FEMA) flood map, which is identified below, the subject property is not located in a zone "A" special flood hazard. Flood Map Number 16005CO237D Flood Map Date 07/07/09 Flood Zone X Flood Maps published by FEMA are not precise. If anyone desires a precise determination of the subject's flood hazard classification, a professional engineer, licensed surveyor, or local governmental authority should make an exact determination. Real Estate Taxes Throughout Bannock County, the Total Assessed Value is supposed to represent 100% of market value for all property types. County Bannock Parcel ID # RPRCCP0024406 RPRCCPCO24409 Tax Year 2023 Total Assessed Value Exempt Total Tax Dollars Exempt Real estate taxes are a primary mechanism used by local government to gather the monies needed to fund operations. Too little funds can limit governmental services. Excessive tax burden can hinder real estate values. For the subject, they are owned by the City of Chubbuck and are exempt from taxes. Zoning The subject property is zoned "C-1" Limited Commercial District by the City of Chubbuck. This land is well suited to serve a large number of legally permitted uses. Zoning does not unduly limit value or marketability. 24-985 Kirkham Appraisals Inc. Page 48 Zoning 24-985 Kirkham Appraisals Inc. Page 49 Environmental Risks Disclosure During the course of this appraisal, the appraiser(s) did not detect or attempt to discover any environmental hazard on, under, above, or within the subject real estate. No overt evidence of any environmental hazard is apparent to the untrained eye. It should be known the appraiser(s) did not view the subject property with the intent of detecting any environmental hazard. It is beyond the expertise of the appraiser(s) to detect or determine the chemical nature of any substance or gas. No effort was made to dismantle or probe any part of the property to discover enclosed, encased, or concealed hazards. No effort was exerted to ascertain the presence of any environmental hazard including but not limited to the following. Asbestos Underground storage tanks Lead-based paint Radon Chemical spills Urea formaldehyde insulation Soil contamination or deficiencies Toxic mold PCB Fire resistant treated plywood (FRTP) Flood hazards are detailed elsewhere in this report. Except as enumerated herein, the appraiser(s) were not given the results of any environmental testing on or near the property being appraised. Neither observation of the subject property, or research conducted as part of a typical real estate appraisal suggest the presence of any hazardous substance or detrimental environmental condition affecting the subject. Nearby sites were not investigated to determine whether they are contaminated. Public information and other Internet sources were not researched to determine the presence of hazardous substances or detrimental environmental conditions in the subject's vicinity. Federal, State, and local laws concerning any hazardous substance or gas are sometimes contradictory. Therefore, any needed clean up should comply with the most stringent laws. The appraiser(s) are not informed or trained in environmental legalities. It is assumed no hazardous substance or gas adversely affects the subject real estate. If the subject is adversely influenced by a hazardous condition, then the subject's market value would be impaired. C111iiuIMMI M The presence of any hazardous condition usually diminishes market value. The value opinion formed in this report assumes there is no environmental hazard affecting the subject real estate. No responsibility is assumed by the appraiser(s) or Kirkham Appraisals Inc. for any hazard, or for any expertise required to discover any environmentally hazardous condition. Our client is urged to retain an expert in this field, if desired. 24-985 Kirkham Appraisals Inc. Page 50 Subject Property Subject Site Size 2.05+/- Acres or 89,298+/- Square Feet Easements Typical utility type Encroachments None known; none assumed Shape Generally Rectangular Topography Mostly Level Curbs & Gutters None Water & Sanitation Public water, public sewer at/near site Rear Alley None Access Typical Street Paving Asphalt Sidewalks None Natural Gas Public Adjacent Road(s) 2 -way, 4 -lane Nearby Land Uses Medical, Office, Residential, Industrial Electric Provided by public companies at prevailing rates Major Flaws None Overall Features The land has typical features as compared to similar alternatives. Its overall locational attributes are average relative to competitive parcels. 24-985 Kirkham Appraisals Inc. Page 51 Analyses & Conclusions .10 Value Introduction For real estate that is predominantly unimproved vacant land, there are six valuation methods. The most frequently used sales comparison approach is employed in this report. 24-985 Kirkham Appraisals Inc. Page 52 Real Estate Cycles Real estate generally has four market cycles. "Understanding where the market is and forecasting the extent of duration of the cycle are important in projecting the patternof future income."' These cycles are depicted below. The red arrow depicts the appraiser(s) opinion of the subject's position in the market cycle. Segment Name Characteristics i Growing demand, rental rates climbing above replacement cost, decreasing AB Expansion vacancy, concessions not prevalent, high profit potential stimulating much new construction Stable to weakening demand, stable to weakening vacancy, small BC Contraction concessions beginning to occur, rents stable to mildly weakening, profit potential shrinking so new construction slowing i CD Recession Stagnant to declining demand, vacancy growing, rental rates falling, significant concessions prevalent, new construction virtually halted DA Recovery Demand strengthening, vacancy shrinking, rental rates starting to climb, concessions shrinking, new construction beginning to occur Time until the next major point to 2 years ' Advanced Concepts & Case Studies, pg 253, Appraisal Institute, copyright 2010 24-985 Kirkham Appraisals Inc. Page 53 Highest and Best Use Introduction A highest and best use identifies the most reasonably probable and appropriately supported use of the property appraised. Since market conditions change, a property's highest and best use may change as well. This analysis is an essential step in the determination of market value. Market dynamics determines a property's use and an appraisal values that use. Practically speaking, a highest and best use analysis forms a framework for the proper selection of comparables. The "Dictionary of Real Estate Appraisal", 6th edition, copyright 2015 by the Appraisal Institute defines this term on page 93 as: 1. The reasonablyprobable use ofproperty that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. 2. The use of an asset that maximizes its potential and that is possible, legally permissible, and financially feasible. The highest and best use may be for continuation of an asset's existing use or for some alternative use. This is determined by the use that a market participant would have in mind for the asset when formulating the price that it would be willing to bid. (IVS) 3. [The] highest and mostprofitable use for which theproperty is adaptable and needed or likely to be needed in the reasonably near future. (Uniform Appraisal Standards for Federal Land Acquisitions). " There are two types of highest and best use. The first is highest and best use of land as though vacant. If a building already exists, the second variety is highest and best use as though now improved. The later considers whether the existing building should be retained as is, demolished, remodeled, renovated, repaired, enlarged, or converted to an alternate use. Both types require separate analyses. Current usage may or may not be different from the near future highest and best use. The concept of Highest and Best Use is based upon four major criteria, which are summarized below: 1. Legally The use must be legal or probable. That is, the use must conform to existing zoning Permissible restrictions, or there must be a reasonable likelihood a rezoning or variance may be granted. Private agreements like deed restrictions and leases must also be considered. 2. Physically Physical attributes of the land that must be considered include size, access, shape, orientation, Possible soil conditions, potential hazards, topography, and utilities. Physical attributes of the building that must be analyzed include design, size, efficiency, mechanical systems, floorplan, construction materials, quality, and physical condition. 3. Financially Land may be developed with different uses. Only those uses, which produce a positive net Feasible return over time with acceptable risk, are deemed financially viable. This use must not depress surrounding property values. 4. Maximum Of all uses that survive the first three tests, there is only one use, which produces the greatest Productivity return with the least risk. This single use represents the property's Highest and Best Use. Supply and demand are constantly fluctuating, so it is common for a property's highest and best use to change. 24-985 Kirkham Appraisals Inc. Page 54 Highest and Best Use Introduction Demand analyses can be categorized into two different levels of detail - Inferred and Fundamental. A fundamental analysis forecasts future demand from projections of broad demographic and economic data, specifically population, income, and employment. Existing supply is inventoried. Then, the relationship of supply and demand is weighed to determine residual demand. If residual demand is positive, more of that property type is needed. Of course, the opposite is also true. An inferred analysis is based on local trends and patterns from which inferences are made. This type analysis presumes that recent past trends will continue for the near future. Sale prices, number of competitive listings, marketing intervals, and / or price changes for other similar properties infer there is adequate demand for the subject at a price level congruous with the available data. An inferred analysis emphasizes historical data while a fundamental analysis is based on expected future occurrences. This appraisal's highest and best use was based, in part, on an inferred demand analysis. Following below are detailed considerations used to form a highest and best use determination for the property appraised. Buyer Types The most likely buyer type is crucial to highest and best use. Different buyer types have different motivations and different perceptions of risk. The buyer type must be identified to better understand applicable approaches and the selection of cap rates and yield rates. Different buyer types are identified below. Owner -User Acquires real estate mostly for its use or control. Vacancy & investment yield are not primary criteria. Property suitability is the major objective. Typically, a medium to long-term owner. 2 Secure Income Seeks an established, secure income stream; normally does not change the property in Investor any meaningful way. Usually favors a long-term ownership. 3 Developer Acquires real estate to physically or legally change it in some significant fashion; accepts substantial risk so expects major reward over a short -to -medium holding period. 4 Speculator Buys real estate solely as an investment with most of the reward at termination. Property use is not a primary consideration; medium -to -long-term holding period; Usually buys during very weak market conditions, so accepts huge risk. Mantra: buy low, sell high. 5 Value Growth Buys real estate mostly for price appreciation. Property use is usually not a major Investor consideration. Typically buys during conditions of rapidly increasing prices; prefers a short -to -medium ownership period. 24-985 Kirkham Appraisals Inc. Page 55 Highest and Best Use Most Likely User The most likely user is also important. Clearly, users of an age -restricted, multiunit residential structure have needs and preferences that are much different from young married couples with small children. Similarly, the most likely buyer of a handicap accessible home is a handicap person. This most -likely buyer would perceive the special physical features as beneficial, not detrimental. Preferences and needs of the most likely user affect value, so the most likely user should be identified to judge the extent that existing or proposed improvements fulfill those preferences or needs. Nationally -recognized users typically pay higher prices and rents as compared to local users. Timing of Use A crucial component of a highest and best use is timing. If the timing of a use is not now, when is it? When timing for a specific use cannot be identified, then that use is not the best. If the highest use is not within a decade, then the time -value of money usually precludes that use. When the timing of a use is within a few years, what is the interim use? Remaining dormant is a legitimate interim use. Ideal Improvement Identification of the "ideal improvement" is an essential element of highest and best use. If the property appraised is vacant land, the ideal describes what should be built. If the existing improvements (one or more buildings and site improvements) have the same or similar attributes as the ideal, then the existing improvements have no or minimal depreciation. Obviously, the opposite also applies. The described ideal improvement is as specific as market data will allow. The ideal improvement is the physical use of the land as though vacant. 24-985 Kirkham Appraisals Inc. Page 56 As Though Now Vacant Land If subject parcel were vacant, how would it be used? This question is answered by applying the four tests of highest and best use. Legally Permissible Legal restrictions fall into two main categories - private and public. Private restrictions are agreements imposed by previous owners. Examples include access easements, use limitations, and leases. Public constraints include zoning, right-of-way easements, historic districts, and utility easements. Unless specifically stated otherwise, there are no known atypical private or public restrictions. Zoning permits a variety of commercial uses including office and light retail. Limited commercial (C-1): The purpose of this district is to provide for small office uses and neighborhood scaled convenience business uses which serve nearby residential areas. The goal of this district is to integrate limited commercial activity and professional offices with residential land uses in a climate favorable to both. Particular attention is to be paid to the interface between commercial and professional uses and the residential uses within the same neighborhood. Such a designation is appropriate where commercial activities are to be provided in the midst of a neighborhood for the benefit of the residents thereof. Such benefits may include convenience, energy conservation or related factors. Such a designation may properly apply to a limited area located in a convenient place relative to the circulation pattern for both vehicles and pedestrians within a neighborhood. Some larger establishments may be conditionally permitted if compatible with adjoining uses. Application of this district would also be appropriate where its permitted or conditionally permitted uses might serve as an effective buffer between a residential neighborhood and nearby commercial or industrial uses. Phvsicallv Possible Physical attributes commonly considered include size, shape, access, flood potential, topography, and availability of utilities. Characteristics that may be significantly detrimental but the appraiser(s) are not trained to detect or determine environmental hazards or soil conditions. There are no known environmental concerns or adverse soil conditions. The land is not located in a FEMA special flood hazard. Sewer and water connections are proximate and access is convenient. The subject's 2.05+/- acre size, New Day Parkway frontage, and efficient shape are adequate for a variety of commercial uses. Its location within a developing area with commercial uses is beneficial for a commercial use that would benefit from moderate traffic and it's location near the Northgate I-15 Interstate Interchange. In summary, the subject's physical attributes are conducive for a myriad of legal commercial uses. Financially Feasible Uses that are impossible or improbable physically and legally are first eliminated. Those uses that remain are then tested to determine whether they produce sufficient net income to fully pay for all operating expenses and provide adequate compensation for all invested capital. Commercial vacancy is low in Eastern Idaho at this time for office, retail, and industrial uses. Commercial sales prices are currently commensurate with commercial construction costs. Currently a commercial use is a financially feasible use. There are current headwinds which should be considered, like the monetary policy that has increased mortgage interest rates thus reducing effective purchasing power. Caution should be taken through the next year when the real estate sector is expected to stabilize. 24-985 Kirkham Appraisals Inc. Page 57 Maximum Productivity Maximum productivity is considered only if more than one use survives the first three tests. This concept holds land will be developed with the use that returns the greatest positive reward over time assuming it is appropriately supported. However, the numerical return should not be the sole determinant. The numerical reward must be weighted within the context of risk. When a use is expected to produce a very attractive return but the risk is very high, that use is often eliminated. A commercial use is currently the maximally productive use for the subject property. Conclusion As Though Now Vacant Physical Use Timing of Physical Use Interim Use Market Participants Most Likely Buyer Most Likely User A New Commercial Building/Buildings Immediately develop with the physical use No Interim Use An owner -user The buyer Considering the foregoing highest and best use determinations, comparables were selected with the same or similar highest and best use. This data is very influential while forming a value opinion for the property appraised. 24-985 Kirkham Appraisals Inc. Page 58 Land Value "As Is" 24-985 Kirkham Appraisals Inc. Page 59 Land Value Introduction The best method of valuing vacant land is the sales comparison approach. Sales of similar sites are gathered and compared to the parcel being appraised. Differences affecting value are noted. Adjustments to compensate for dissimilarities are applied applicable transactions. Adjusted comparables produce an indication of value for the subject parcel. Any factor can affect value. Those considered during this appraisal's land valuation process included yet are not limited to prominence of location, date of sale, size, shape, availability of utilities, zoning, topography, and access. Numerous sales were reviewed; however, only those deemed most comparable were selected for detailed analysis. All conveyed on an "arm's length" basis except if specifically noted otherwise. Land sales shown herein are presented on a dollar per square foot basis as a common denominator. Abbreviations Used in Some Tables SEC = Southeast Corner Sim = Similar NWC = Northwest Corner Inf = Inferior Loc Fea = Locational Features Sup = Superior There are few, if any, conveyances of truly similar land. Therefore, an opinion of the subject's land value was developed after consideration of scarce sales, which hinders the sales comparison process. Moreover, the allocation method of land valuation was also considered. 24-985 Kirkham Appraisals Inc. Page 60 Land Sale #1 Commercial Property Land Location Data Address it1' I Cfl unty 11D W Siphon Rffad Ch ut tt _, P= --ruck Sales Data Granter Siphon PrDpe•rtiesLLC Grantee F nanc i rig Term!, Cash t--=ell=r Property Right, Conveyed JesseAldDusand HaHey Akiou_ Fte=irrFI= Sale Gate - - Gay's an Market Sales Price x915 SM -3c Ca 5h Equivalent Price Conditions of Sak ,,rmsLenfl h Verification lv? $8is. 51Ix IJan Thnnias: Agent Economic In dicator Site Data Parrel:P Sze in 5F RFRC'.,:H=OCv5:-1 111,51= oning Sze inAcre a L' - 2.5E Appraisal Indicators vera 11PricePeruni# I Grasanentr.9uidpli.r 7.31 I I 4. Lf 3pitalization Rate F -GI a ran cy G1 €KP- W01 ISO SO jsv 24-985 Kirkham Appraisals Inc. Page 61 Land Sale #2 Commercial Property Land Location Data Address ity courtbJ TBD New Day Parkway Chubhurk Bannock Sales Data Grarmnr Spud Buddies LLC -Grantee Ir -=_rite DevelapmentGroup, In Sate Date Sakes Pare 4!W 202 2 $112907S.2D Days an Market Cash EquivalentPrire $1,129,-a S.20 Economic In-dicator Rnanririg Terms cgsh tc =-eller Property Rights Conveyed Fee r-implE C43 "itians of 5a le 4rmsLen-th VEriferatian erardrr PadiPf:EL, •rer Site Data Parcel 0 Size in 5F RPRCCPC--2u:2S X51,3'1 Zoning Size inAtrea App rai5a11ndicator5 Overall Price Per Unit 1Gross Rem MultipEer •x.•30 Capitalization Rate PGI Vacancy ES Expenses Itiol 0 5v s- 5u 11so This isthesalaof 9.77{/- acres along New Day Parkway. A new interstate interchangewasmmpleted within thepast -E-au pl eof ye ars that h as i nrre aced traffrc flow along N ew Day. Th e subject was not gru bbed or level ed before purch asE. Buyer provided m e th e settlement statem ent from AI li anre Tit] e. Picture 24-985 Kirkham Appraisals Inc. Page 62 Land Sale #3 Commercial Property Land Location Data Address C itp countyr TRIS',_., L-1 F=-r,r.= -- t I Bennack Sales E)ata Grantar LLL Side in 5F Rnancirig Term s E=h CL :: -E- G ra nt ee ariirg Property Rightr Cnveyne d �r-ca at Chubburk LLC Fea.5imple Sale ame 5 2019 Sales Prue $1443MOMsLen-th Caniftaew afSale Days an Q6-1hq�iva h 6lent Prise VerifRatmn Unknown $1,165,Mago Con fidentiaI Economic Indicator Site Data Parcel # Side in 5F RFRCNM031•0a 278,7 ariirg Sze in Acres C-1 (Lim itedComti 6. LC App ra isa I Ind icators vera 11 Price Per Unit Gross Ren tA9ultiplie� $ -.1= . -,c ] ipitaIiaatian Rate PG Q €,gpai *91 L $ o 159 Isr- 01mmem This is asal e of a &40f - acre part.el th at wassplit from a lar.-er part el. Thesales price included $27 SMO in road casts actardingtothe seller. The land was sold m anamisted IMrigcarnpanyandtheyare buildinga large assisted Inning facility. The cash equivalent price removed thL-$27S,W6in road rusts. Picture ii SEI �:'� '� rai a=� �i . • -, — ... -... - . 1..j 24-985 Kirkham Appraisals Inc. Page 63 Land Sale #4 Commercial Property Land Location Data Address ity CM" TEDYellawsinne Hwy Chubburlc jBanw& So le s Do to Site Data C, ranter arK3-w, R Grey Sate in SF R narri ng Terms BI" : tell Er Gramee Wamer, Theodore J Property Rights Conveyed Fee r- irrFle Sale Date Sales Frits IGDnditar15 of Sale 9/q2021 $1 x --.cc ArmsLenath Days are Market C�shEquivaIentPrite Verifiration 57 $129,o}D-m 5catt Kel ler: agent Econ-om is Indicator Parcet Sate in SF RPRCCPCt XI02 27,-3 Zoning Size in Ar res a-2 -a E3 App ra isa I Ind icatar5 verall Price lGruss Rent Mu Eti i I -a-30 Capitalization Rate 3. PER Varanry {a bwertieswow -0 jsv $o I 5C This is a parcel of land acnxss from Cross Roads RV in Ch Lbbu r k It has goad frontage on Yellowstone and issu rrnun ded Ly a n ew townh-Duse develapm ent and same cflm mercial build res Picture MONO Lp� CrnKat U�o4{i:-1: fF gq_er►r4V ti.,..,_,r � ��� hpnr�w.'/++rt Oak _ w�.F}yriq Sr. Few+. A. hfi.0 ..•.Ilia.•. F i , FSo-a C�o-x r�� C9Q 6h+�rry 49� :v�-0 rao-• %-J.1. J. 24-985 Kirkham Appraisals Inc. Page 64 Land Sale #5 Wcatiort Data A Ukess Carr 5 328 Ye lbw --;tone Aviv ue h ubbu do Ban node *ales Data Site Data -Granter Mathevr5fiiczawa F nanc i rig Terms ia_h tL ;all=: -Grantee Pro pe rty Right C onveje d !RG Holdings, LLC. FeeSimple {ale Dme 531esPrice lCo rid ibans cf5ale 5j1V 3023 51 =:mymaao 4rmsLength []yrs m Market Cash Equivalent pare• M_-fi mtian $1,40},'.00 P&S:Deed Economic Indicator Parcel # Size in 5F RPR3853M2EM, R 192,c3' nft Size in Acres Mu =. 5E Arlo ra iso I Ind icators vera 11 Price Per Unit Grass Rent Multiplier 5' CS . CC Capita I i zatia n Rate *Ir I.. P{,I a Expenses JINDI S O 0 $4 $�, Com iii en:m Th is L th a sale of twg parcel saf land a brig Y ell awston a Ave nu e i n Ch ut«buck th at was not yet an nex2d i rrtff th a flty. Th ere were im pravement5 that are W be razed i n th e future far -deve kapm Ent of th e krt into {om merr ial uses. pr"e 24-985 Kirkham Appraisals Inc. Page 65 d- *Ir I.. t' .. I k i w +r .I r r 41 ' } ttll' rl'i 24-985 Kirkham Appraisals Inc. Page 65 Land Value Summary of Land Sales # Location Sale Size (SF) Zoning Purchase Price/SF Date Price 1. 110 W Siphon Road, 04/22 111,514+/- C-2 $815,518 $7.31 Chubbuck 2. TBD New Day Parkway, 04/22 251,341+/- C-2 $1,129,075 $4.49 Chubbuck 3. TBD New Day Parkway, 05/19 278,784+/- C-1 $1,165,000 $4.18 Chubbuck 4. TBD Yellowstone Highway, 08/21 27,443+/- C-2 $129,000 $4.70 Chubbuck 5. 5328 Yellowstone Avenue, 05/23 198,634+/- MU $1,400,000 $7.05 Chubbuck Subject TBD New Day Parkway, - 89,298+/- C-1 - - Chubbuck 24-985 Kirkham Appraisals Inc. Page 66 Land Value Land Sales Location Map 24-985 Kirkham Appraisals Inc. Page 67 Land Value Quantitative Adjustment Grid Land/Site Adjustment Grid SUMMARY OF COMPARABLES Subject 1 2 3 4 6 Date of Sale 04/22 04/22 05/19 08/21 05/23 Zoning C-1 C-2 C-2 C-1 C-2 MU Utilities City City City City City City Sale Price $815,518 $1,129,075 $1,165,000 $129,000 $1,400,000 Size (SF) 89,298 111,514 251,341 278,784 27,443 198,634 Price/Square Foot $7.31 $4.49 $4.18 $4.70 $7.05 ADJUSTMENTS Property Rights Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Adjusted Price/Foot $7.31 $4.49 $4.18 $4.70 $7.05 Cond/Terms - - - - ($1.41) Adjusted Price/Foot $7.31 $4.49 $4.18 $4.70 $5.64 Market (Time) Adj. $0.00 $0.00 $0.38 $0.14 $0.00 Adjusted Price/Foot $7.31 $4.49 $4.55 $4.84 $5.64 Location - - - - - Zoning - - - - - Size - - - - - Utilities - - - - - Shape/Topography - - - - - Frontage/Access ($1.46) - - - - Other - - - - - ADJUSTED VALUE $5.85 $4.49 $4.55 $4.84 $5.64 Net Adjustment ($1.46) $0.00 $0.00 $0.00 $0.00 Range of Values $4.49 to $5.85 Mean $5.08 24-985 Kirkham Appraisals Inc. Page 68 Land Value Analysis & Conclusions The subject and all cited comparable sales share several characteristics. They are all located in Chubbuck and have similar possible development uses. These commonalities justify inclusion of these transactions in this analysis. Often there are differences between the property appraised ("the subject") and a comparable sale. When the dissimilarity affects value, an adjustment to the sale price of the comparable is necessary. PropeM Rights Agreements or laws create partial interests in real estate. A deed restriction or life estate usually reduces rights and value. If the subject is not affected by these limitations and a comparable is, then the comparable's sale price needs an upward property rights adjustment. In another situation, unfavorable leases eliminate a landlord's right to collect market rent, so the real estate sells for a below-market price. If the property appraised has no lease adversities and a comparable does have unfavorable leases, then the comparable requires upward adjustment. Unless stated otherwise, property rights are virtually the same for the subject and all cited conveyances. Hence, no adjustments are necessary for this element of comparison. Financing Sub -market financing is a common technique used to finance the acquisition of real estate during periods of high interest rates. When non -market financing is used, the financing may be favorable to the buyer so the sale price is inflated. The escalated price can be envisioned as a composite of the worth of real estate plus the value of advantageous financing. Since value created by financing is not real property, the contribution of the advantageous financing must be deducted from total sale price to derive market value for just the realty. On the opposite hand, there are instances where the buyer assumes unfavorable financing, so the sale price is diminished. In the latter case, an upward adjustment must be applied to the sale price of the comparable thusly deriving the market value of the real estate. Unless a statement is made to the contrary, non -market financing was not used to acquire any comparable sale cited in this report. Therefore, no compensations are needed for financing. Conditions of Sale An adjustment for conditions of sale is necessary when a criterion of market value is violated. It could compensate for unusual buyer or seller motivations. For instance, when a seller gives a buyer an atypical rebate, discount, credit, or something of value to induce a conveyance, the sale price is usually inflated. In this case, it is logical to deduct the worth of the giveback from the sale price. Residual sums represent the property's market value. In another scenario, a buyer may pay a premium to facilitate an assemblage. In this instance, the premium must be deducted from the sale price to derive market value for that conveyance. Sale 5 was purchased by a neighbor to assemble into their current parcel, and it appears they paid a premium based on the other sales in the area. This sale is adjusted downward for its premium. Expenditure Post Sale This is a situation when a buyer is compelled to invest additional money into a property immediately after acquisition for some atypical reason. Post -sale invested sums are appropriately added to a comparable's sale price thereby producing an adjusted sale price. Examples are demolition costs or building -code compliance costs. Unless a contrary statement is made, no adjustments are necessary for post -sale expenditures. Market Conditions Adjustments for market conditions are commonly referred to as time adjustments, but this is misleading. Value does not change due to the passage of time; sometimes it remains stable. Often real estate values fluctuate due to changes in supply and demand, interest rates, employment, or inflation. This type of adjustment compensates for change in market conditions between a sale's transaction date and a later point in time. All cited comparables conveyed between May 2019 and this report's effective value date. The market did increase to about the middle of 2022. Sales prior to 2022 were adjusted at 3% annually up through the middle of 2022. Location Each property was rated to the subject for locational aspects such as value growth potential, access, and general desirability. Those transactions with superior locations were adjusted downward and vice versa. All sales are from Chubbuck, so no adjustments were considered necessary. Physical Attributes A myriad of physical characteristics can affect land value. Some examples are lot size, shape, site orientation, availability of utilities, and soil conditions. Those sales with superior physical qualities warrant downward adjustment and vice versa. 24-985 Kirkham Appraisals Inc. Page 69 Size can be an influential factor in value for commercial land. Often smaller size land will sell at a premium over larger parcels of land. I have performed a trend analysis, which indicated low correlation between size and price per square foot, so no adjustments were made. Frontage and access can have a major factor for commercial land values. Often land with high density traffic frontage or very near interstate interchanges will sell at a premium over lower density traffic roads or farther distances from the interstate. Sale 1 is a corner lot, and is adjusted downward. Analysis & Conclusions The appraiser is well aware the cited conveyances are less than ideal comparisons. However, sales of more comparable properties were not discovered during our research. Selected transactions were chosen for analysis because they are all moderately priced, commercial parcels like the subject, that have similar highest and best uses. The adjusted data for the subject varies from $4.49 to $5.85 per sq. ft., with a $5.08 per square foot average. A value near the central tendency is considered reasonable. After consideration of all factors pertaining to and influencing land values, the following is selected as the most fitting value indication for the subject parcel as though vacant. Accordingly, Subject Property 89,298 Sq. Ft. @ $5.00 Per Sq. Ft. _ $446,490 Indicated Market Value of Subject Land "As Is" $445,000 Via Sales Comparison, Say 24-985 Kirkham Appraisals Inc. Page 70 Value Summary The subject property physically consists of two autonomous, vacant parcels creating one tract of land. The tract of land consists of a total of 2.98+/- acres with what appears to be two access points from New Day Parkway based on a site concept plan provided by the client. Of the 2.98+/- acres, only about 2.05+/- acres is usable because of ROW easements along the north side of the property. The land is in a developing area with office, medical office, industrial, residential, and vacant land uses, off anew I-15 Interstate Interchange. This tract of land is zoned "C-1" Limited Commercial by the City of Chubbuck. A highest and best use analysis concluded a commercial use would yield the greatest net return to the land. The cost approach is only applicable buildings with minimal depreciation. In this case, this approach is not an appropriate valuation method. Vacant land is seldom leased in this locale, so rental data for just the land is almost non-existent. Hence, the income approach is also not applicable. The sales comparison approach firmly supports the worth of the land as though vacant. After careful consideration of all factors pertaining to and influencing value, the data and analysis thereof firmly supports a market value for the subject real estate as of March 11, 2024. $445,000 Market Value "As Is" 24-985 Kirkham Appraisals Inc. Page 71 Exposure Time Terminology abounds in the real estate appraisal profession. Two related but different concepts that are often confused are Exposure Time and Marketing Time. USPAP specifically addresses the confusion. Definition Explanation "The estimated length of time the property interest being Backward looking, ends on Exposure Time appraised would have been offered on the market prior to the the effective value date. (Statement 6) hypothetical consummation of a sale at market value on the Based on factual past events effective date of the appraisal". ' "An opinion of the amount of time it might take to sell a real or Forward looking, starts on the Marketing Time effective value date. A (Advisory Personal property interest at the concluded market value forecast based on Opinion 7) during the period immediately after the effective date of the expectancies of future appraisal". occurrences. Marketing time and exposure time are both influenced by price. That is, a prudent buyer could be enticed to acquire the property in less time if the price were less. Hence, the time span cited below coincides with the value opinion(s) formed herein. USPAP Standard rule 1-2(c)(iv) requires an opinion of exposure time, not marketing time, when the purpose of the appraisal is to estimate market value. In the recent past, the volume of competitive properties offered for sale, sale prices, and vacancy rates have fluctuated little. Sale concessions have not been prevalent. In light thereof, an estimated exposure time for the subject is 0 to 12 months assuming competitive pricing and prudent marketing efforts. 24-985 Kirkham Appraisals Inc. Page 72 Contingent and Limiting Conditions 1. By this notice, all persons, companies, or corporations using or relying on this report in any manner bind themselves to accept these Contingent and Limiting conditions, and all other contingent and limiting conditions contained elsewhere in this report. Do not use any portion of this report unless you fully accept all Contingent and Limiting conditions contained throughout this document. 2. The "Subject" or "Subject Property" refers to the real property that is the subject of this report. An Appraiser is defined as an individual person who is licensed to prepare real estate appraisal -related services in the State of Idaho and affixes his / her signature to this document. 3. Throughout these Contingent and Limiting Conditions, the singular term "Appraiser" also refers to the plural term "Appraisers". The terms "Appraiser" and "Appraisers" also refer jointly / collectively to "Kirkham Appraisals Inc.", its officers, employees, contractors, personnel, staff, shareholders, members, and affiliates. The masculine terms "he" or "his" also refer to the feminine term "she" or "her". 4. In these Contingent and Limiting Conditions, the "Parties" refers to all of the following collectively: (a) the Appraiser(s), (b) Kirkham Appraisals Inc., (c) the client, and (d) all intended users. 5. These Contingent and Limiting Conditions are an integral part of this report along with all certifications, definitions, descriptions, facts, statements, assumptions, disclosures, hypotheses, analyses, and opinions. 6. All contents of this report are prepared solely for the explicitly identified client and other explicitly identified intended users. The liability of the Appraiser is limited solely to the client. There is no accountability, obligation, or liability to any other third parry. Other intended users may read but not rely on this report. In no event, shall the Appraisers be liable for consequential, special, incidental or punitive loss, damages or expense (including without limitation, lost profits, opportunity costs, etc.) even if advised of their possible existence. If this report is placed in the hands of anyone other than the client, the client shall make such party aware of all contingent and limiting conditions, assumptions, and disclosures. Use of this report by third parties shall be solely at the risk of the third party. 7. This document communicates the results of an appraisal assignment. This communication is not an inspection, engineering, construction, legal, or architectural report. It is not an examination or survey of any kind. Expertise in these areas is not implied. The Appraiser is not responsible for any costs incurred to discover, or correct any deficiency in the property. 24-985 Kirkham Appraisals Inc. Page 73 Contingent and Limiting Conditions 8. As part of this appraisal, information was gathered and analyzed to form opinion(s) that pertain solely to one or more explicitly identified effective value dates. The effective value date is the only point in time that the value applies. Information about the subject property, neighborhood, comparables, or other topics discussed in this report was obtained from sensible sources. In accordance with the extent of research disclosed in the Scope of Work section, all information cited herein was examined for accuracy, is believed to be reliable, and is assumed reasonably accurate. However, no guaranties or warranties are made for this information. No liability or responsibility is assumed for any inaccuracy which is outside the control of the Appraiser, beyond the scope of work, or outside reasonable due diligence of the Appraiser. 9. Appraiser and Client agree the following mutual limitation of liability is agreeable in consideration of the fees to be charged and the nature of appraisal services provided under this Agreement. Appraiser and Client agree to the fullest extent permitted by applicable law, that the Appraiser's and its Personnel's maximum aggregate and joint liability to the other party for claims and causes of action relating to this Agreement for appraisals or other services under this agreement shall be limited to $25,000 or the total of all fees and costs charged by the Appraiser for services that are subject of the claim(s) or cause(s) of action. This limit of liability extends to all types of claims or causes of action, whether in breach of contract or tort, including without limitation claims / causes of action for negligence, professional negligence, or negligent misrepresentation on the part of either party or its Personnel, but excluding claims / causes of action of intentionally fraudulent conduct, criminal conduct, or intentionally caused injury. The Personnel of each parry are intended third parry beneficiaries of this limitation of liability. The word "Personnel", as used in this paragraph, means the respective party's staff, employees, contractors, members, partners, affiliates, and shareholders. Appraiser and Client agree that they each were free to negotiate different terms than stated in this Agreement or contract with other parties. 10. Real estate values are affected by many changing factors. Therefore, any value opinion expressed herein is considered credible only on the effective value date. Every day that passes thereafter, the degree of credibility wanes as the subject changes physically, the economy changes, or market conditions change. The Appraiser reserves the right to amend these analyses and/or value opinion(s) contained within this appraisal report if erroneous, or more factual -information is subsequently discovered. No guarantee is made for the accuracy of estimates or opinions furnished by others, and relied upon in this report. 11. In the case of limited partnerships, syndication offerings, or stock offerings in the real estate, the client agrees that in case of lawsuit (brought by the lender, partner, or part owner in any form of ownership, tenant, or any other party), the client will hold Kirkham Appraisals Inc., its officers, contractors, employees and associate appraisers completely harmless. Acceptance of, and/or use of this report by the client, or any third party is prima facie evidence that the user understands and agrees to all these conditions. 24-985 Kirkham Appraisals Inc. Page 74 Contingent and Limiting Conditions 12. For appraisals of multiunit residential, only a portion of all dwellings was observed. A typical ratio of observed dwellings roughly approximates 10% of the total number of units, and this ratio declines as the number of dwellings grows. It is assumed the functionality, physical condition, construction quality, and interior finish of unseen units are like the functionality, physical condition, construction quality, and interior finish of observed units. If unobserved dwellings significantly differ from those that were viewed in functionality, physical condition, quality, or finish, the Appraiser reserves the right to amend theses analysis and/or value opinion(s). 13. If the appraised property consists of a physical portion of a larger parcel is subject to the following limitations. The value opinion for the property appraised pertains only to that portion defined as the subject property. This value opinion should not be construed as applying with equal validity to other complementary portions of the same parcel. The value opinion for the physical portion appraised + the value of all other complementary physical portions may or may not equal the value of the whole parcel. 14. Unless specifically stated otherwise herein, the Appraiser is unaware of any engineering study made to determine the bearing capacity of the subject land, or nearby lands. Improvements in the vicinity, if any, appear to be structurally sound. It is assumed soil and subsoil conditions are stable and free from features that cause supernormal costs to arise. It is also assumed existing soil conditions of the subject land have proper load bearing qualities to support the existing improvements, or proposed improvements appropriate for the site. No investigations for potential seismic hazards were made. This appraisal assumes there are no conditions of the site, subsoil, or structures, whether latent, patent, or concealed that would render the subject property less valuable. Unless specifically stated otherwise in this document, no earthquake compliance report, engineering report, flood zone analysis, hazardous substance determination, or analysis of these unfavorable attributes was made, or ordered in conjunction with this appraisal report. The client is strongly urged to retain experts in these fields, if so desired. 15. If this report involves an appraisal that values an interest, which is less than the whole fee simple estate, then the following disclosure applies. The value for any fractional interest appraised + the value of all other complementary fractional interests may or may not equal the value of the entire fee simple estate. 16. If this appraisal values the subject as though construction, repairs, alterations, remodeling, renovation, or rehabilitation will be completed in the future, then it is assumed such work will be completed in a timely fashion, using non -defective materials, and proper workmanship. All previously completed work is assumed completed in substantial conformance with plans, specifications, descriptions, or attachments made or referred to herein. It is also assumed all planned, in -progress, or recently completed construction complies with the zoning ordinance, and all applicable building codes. A prospective value opinion has an effective value date that is beyond or in the future relative to this report's preparation date. If this appraisal includes a prospective valuation, it is understood and agreed the Appraiser is not responsible for an unfavorable value effect caused by unforeseeable events that occur before completion of the project. 24-985 Kirkham Appraisals Inc. Page 75 Contingent and Limiting Conditions 17. This valuation may or may not include an observation of the appraised property by an Appraiser. The extent of any observation is disclosed in the Scope of Work section of this report. Any observation by an Appraiser is not a professional property inspection. Viewing of the subject was limited to components that were not concealed, clearly observable, and readily accessible without a ladder on the property observation date. As used herein, readily accessible means within the Appraiser's normal reach without the movement of any man made or natural object. Comments or descriptions about physical condition of the improvements are based solely on a superficial visual observation. These comments are intended to familiarize the reader with the property in a very general fashion. 18. The allocation of value between the subject's land and improvements, if any, represents our judgment only under the existing use of the property. A re-evaluation should be made if the improvements are removed, substantially altered, or the land is utilized for another purpose. 19. The Client and all intended users agree to all the following. (A) This appraisal does not serve as a warranty on the physical condition or operability of the property appraised. (B) All users of this report should take all necessary precautions before making any significant financial commitments to or for the subject. (C) Any estimate for repair or alternations is a non -warranted opinion of the Appraiser. 20. Electric, heating, cooling, plumbing, water supply, sewer or septic, mechanical equipment, and other property systems were not tested. No determination was made regarding the operability, capacity, or remaining physical life of any component in, on, or under the real estate appraised. All building components are assumed adequate and in good working order unless stated otherwise. Private water wells and private septic systems are assumed sufficient to comply with federal, state, or local health safety standards. No liability is assumed for the soundness of structural members since structural elements were not tested or studied to determine their structural integrity. The roof cover for all structures is assumed water tight unless otherwise noted. This document is not an inspection, engineering or architectural report. If the client has any concern regarding structural, mechanical, or protective components of the improvements, or the adequacy or quality of sewer, water or other utilities, the client should hire an expert in the appropriate discipline before relying upon this report. No warranties or guarantees of any kind are expressed or implied regarding the current or future physical condition or operability of any property component. 21. Any exhibits in the report are intended to assist the reader in visualizing the subject property and its surroundings. The drawings are not surveys unless specifically identified as such. No responsibility is assumed for cartographic accuracy. Drawings are not intended to be exact in size, scale, or detail. 22. Value opinions involve only real estate, and inconsequential personal property. Unless explicitly stated otherwise, value conclusions do not include personal property, unaffixed equipment, trade fixtures, business - good will, chattel, or franchise items of material worth. 24-985 Kirkham Appraisals Inc. Page 76 Contingent and Limiting Conditions 23. All information and comments concerning the location, market area, trends, construction quality, construction costs, value loss, physical condition, rents, or any other data for the subject represent estimates and opinions of the Appraiser. Expenses shown in the Income Approach, if used, are only estimates. They are based on past operating history, if available, and are stabilized as generally typical over a reasonable ownership period. 24. No liability is assumed for matters of legal nature that affect the value of the subject property. Unless a clear statement to the contrary is made in this report, value opinion(s) formed herein are predicated upon the following assumptions. (A) The real property is appraised as though, and assumed free from all value impairments including yet not limited to title defects, liens, encumbrances, title claims, boundary discrepancies, encroachments, adverse easements, environmental hazards, pest infestation, leases, and atypical physical deficiencies. (B) All real estate taxes and assessments, of any type, are assumed fully paid. (C) It is assumed ownership of the property appraised is lawful. (D) It is also assumed the subject property is operated under competent and prudent management. (E) The subject property was appraised as though, and assumed free of indebtedness. (F) The subject real estate is assumed fully compliant with all applicable federal, state, and local environmental regulations and laws. (G) The subject is assumed fully compliant with all applicable zoning ordinances, building codes, use regulations, and restrictions of all types. (H) All licenses, consents, permits, or other documentation required by any relevant legislative or governmental authority, private entity, or organization have been obtained, or can be easily be obtained or renewed for a nominal fee. 25. Conversion of the subject's income into a market value opinion is based upon typical financing terms that were readily available from a disinterested, third party lender on this report's effective date. Atypical financing terms and conditions do not influence market value, but may affect investment value. 26. This appraisal was prepared by Kirkham Appraisals Inc. and consists of trade secrets and commercial or financial information, which is privileged, confidential, and exempt from disclosure under 5 U.S.C. 522 (b) (4). 27. The Appraiser is not required to give testimony or produce documents because of having prepared this report unless arrangements are agreed to in advance. If the Appraiser is subpoenaed pursuant to court order or required to produce documents by judicial command, the client agrees to compensate the Appraiser for his appearance time, preparation time, travel time, and document preparation time at the regular hourly rate then in effect plus expenses and attorney fees. In the event the real property appraised is, or becomes the subject of litigation, a condemnation, or other legal proceeding, it is assumed the Appraiser will be given reasonable advanced notice, and reasonable additional time for court preparation. 24-985 Kirkham Appraisals Inc. Page 77 Contingent and Limiting Conditions 28. Effective January 26, 1992, the Americans with Disabilities Act (ADA) - a national law, affects all non- residential real estate or the portion of any property, which is non-residential. The Appraiser has not observed the subject property to determine whether the subject conforms to the requirements of the ADA. It is possible a compliance survey, together with a detailed analysis of ADA requirements, could reveal the subject is not fully compliant. If such a determination was made, the subject's value may or may not be adversely affected. Since the Appraiser has no direct evidence, or knowledge pertaining to the subject's compliance or lack of compliance, this appraisal does not consider possible noncompliance or its effect on the subject's value. 29. Kirkham Appraisals Inc. and the Appraiser have no expertise in the field of insect, termite, or pest infestation. We are not qualified to detect the presence of these or any other unfavorable infestation. The Appraiser has no knowledge of the existence of any infestation on, under, above, or within the subject real estate. No overt evidence of infestation is apparent to the untrained eye. However, we have not specifically inspected or tested the subject property to determine the presence of any infestation. No effort was made to dismantle or probe the structure. No effort was exerted to observe enclosed, encased, or otherwise concealed evidence of infestation. The presence of any infestation would likely diminish the property's value. All value opinions in this communication assume there is no infestation of any type affecting the subject real estate or the Appraiser is not responsible for any infestation or for any expertise required to discover any infestation. Our client is urged to retain an expert in this field, if desired. 30. All opinions are those of the signatory Appraiser based on the information in this report. No responsibility is assumed by the Appraiser for changes in market conditions, or for the inability of the client, or any other party to achieve their desired results based upon the appraised value. Some of the assumptions or projections made herein can vary depending upon evolving events. We realize some assumptions may never occur and unexpected events or circumstances may occur. Therefore, actual results achieved during the projection period may differ from those set forth in this report. Compensation for appraisal services is dependent solely on the delivery of this report, and no other event or occurrence 31. No warrantees are made by the Appraiser concerning the property's conformance with any applicable government code or property covenant including but not limited to all laws, ordinances, regulations, agreements, declarations, easements, condominium regulations, restrictions, either recorded or unrecorded. The client is urged to engage the services of a licensed attorney to confirm any legal issue affecting the property appraised. No liability or responsibility is assumed by the Appraiser to determine the cost of replacing or curing any supposedly defective physical component. 32. In the event of an alleged claim due to some defective physical component, the client must notify Kirkham Appraisals Inc. and allow its representatives and experts to examine and test the alleged defective component before any repairs or modifications are made. If any type of repair or modification is made without the knowledge of the Appraisers, the Appraiser is released from all liability, real or alleged. 24-985 Kirkham Appraisals Inc. Page 78 Contingent and Limiting Conditions 33. The client and all explicitly identified intended users agree to notify in writing Kirkham Appraisals Inc., within one year of this report's preparation date, of any claim relating to or arising from this report regardless of any statute of limitations. If Kirkham Appraisals Inc. does not receive this written notification within the year period defined in the paragraph, then the claimant releases the Appraiser from all claims arising from or related to this report. 34. The client and all explicitly identified intended users acknowledge that any claim relating to this report shall be settled in accordance with the commercial arbitration rules of the American Arbitration Association with the Parties each paying an equal share of all associated costs. 35. Any alleged claim must be filed in the Circuit Court for the County that encompasses most of or all of Pocatello, Idaho 83206 where the Appraiser's business office is located. If a court of law voids any portion of these Contingent and Limiting Conditions, then the remainder remains in full force and effect. The claimants(s) agree not to contest the venue set forth herein and to submit to, and not contest, the exercise of personal jurisdiction over them by the foregoing court. The claimant(s) waive all rights concerning the exercise of personal jurisdiction of them by the foregoing courts and all claims of or concerning forum non - conveniences in the foregoing forum. 36. Superseding all comments to the contrary regardless of the date, this report may not be transferred or assigned without the prior written consent of Kirkham Appraisals Inc., the copyright holder. 37. No part of this report shall be published or disseminated to the public by advertising media, public relations media, news media, sales media, electronic devices, or other media without the prior written consent of Kirkham Appraisals Inc.. This restriction applies particularly as to analyses, opinions, and conclusions; the identity of the Appraiser; and any reference to the Appraisal Institute or its MAI, SRPA, or SRA designations. Furthermore, no part of this report may be reproduced or incorporated into any information retrieval system without prior written permission from Kirkham Appraisals Inc., the copyright holder. 24-985 Kirkham Appraisals Inc. Page 79 Certification The appraiser signing this report make the following certifications to the best of his / her knowledge and belief. ➢ The statements of fact contained in this report are true and correct. ➢ Reported analyses, opinions, and conclusions are limited only by the assumptions and limiting conditions contained within this report, and are the appraiser's personal, impartial, and unbiased professional analyses, opinions, and conclusions. ➢ The appraiser has no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved. ➢ The appraiser has no bias with respect to the property that is the subject of this report, or to the parties involved with this assignment. ➢ This engagement is not contingent upon developing or reporting predetermined results. ➢ Compensation paid to the appraiser is not contingent upon the development or reporting of a predetermined value, or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of the appraisal. ➢ Reported analyses, opinions, and conclusions were developed, and this report was prepared in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) ➢ A statement regarding observation of the subject property by the appraiser is listed below. The appraiser is not a professional property inspector. Furthermore, the appraiser has no formal training in the use of tools or instruments as part of a professional property inspection. Observations by the appraiser, if any, was limited to just those physical features and attributes that are not hidden or obscure in any fashion by any object or weather condition. The appraiser did not used any tools or instruments, beyond those typically used by appraisers to probe, study, investigate, detect, or discover any physical feature or attribute that was not clearly visible on the date the property was observed. Appraiser Brian Kirkham, MAI Observations Moderate Land Viewing ➢ No one provided significant real property appraisal assistance to the appraiser(s) signing this certification. ➢ The appraisers have not performed any services, as an appraiser or in any other capacity, regarding the property that is the subject of this report during the three-year period immediately preceding acceptance of this assignment. 24-985 Kirkham Appraisals Inc. Page 80 Certification ➢ Use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. I have completed all continuing education requirements for designated members of the Appraisal Institute. ➢ After careful consideration of all factors pertaining to and influencing value, the data, and analysis thereof firmly supports the following final value opinion(s) for the subject property as of March 11, 2024: $445,000 Market Value "As Is" Brian Kirkham, MAI Certified General Appraiser Idaho License CGA -3486 License Expiration Date: 5/9/2024 24-985 Kirkham Appraisals Inc. Page 81 Addenda • • • Digital Images Our world is rapidly shifting to a global economy in which technology and e-commerce play major roles. Digitized signatures and digital photographs are key elements of this shift. This appraisal may contain digital photographs, which are true and accurate representations. Brightness and/or contrast of these images may have been adjusted to enhance visibility when lighting conditions were too light or too dark. However, the content of these images was not altered or augmented in any way. Digital signatures may be affixed to this document. Statement 8 of USPAP recognizes and addresses the proper use of digitized signatures. In this document, a digital signature is a reproduction of the appraiser's actual signature. Software used for the affixation has a password security feature, which controls its usage. 24-985 Kirkham Appraisals Inc. Page 82 Technical Qualifications Technical Qui-Ilificatiuus Ekren Kirkham, MAI Kirkham Appralsals Inc, 2363 IDuskview Court \1 41 Pocalella, Id 83201 Education: BA_ Degree, Applied Economics Idaho State University, 2010 IDAHO CERTIFIED GENERAL _LPPKU. ER CG.1-3486 Service Education Chairman for Southam Idaho Chapter of the Appraisal Institute MIM -2021) Sp-LLcialiaed Background: - Seminars and courses sponsored by the Appraisal Institute, Amenran Society of Farm Managers and Rural Appraisers and American Institute of Real Estate Appraisers, and Institute of Real Estate Appraisal Studies including: Appraisal IncMftrta-Quanntative Analysis Appraisal I=hrute-Advanced Concepts and Case Studies Appraisal Insbrute-Advanced Market Analysis and Higbest and Best Use Appraisal hEbr to-. dL anced Income Capitalization Appraisal Instihrte-General Appraiser Income Capitai=tion I Appraisal Instil -General A,ppraiserIncomeCapi+al� Appraisal Instiuute-General Appraiser Mar}et Analysis and Highest & Best Use Appraisal Instihrte-General Sales Comparison Approach Appraisal Institute -General Cost Approa& and Site Analysis Appraisal Iusbn te-General Report Writing Appraisal IuFbh"-General Appraiser Market Analysis and Higbest & Best Use Appraisal Inshitute-Statistic s Appraisal hstirute-Adkanced Residential Applicatilaw and Cast Studies USPAP USPAP Update Institute of ReaL Estate Appraisal Studies -Fundamentals of Real Estate Apprdmi s Institute of Real Estate Appraisal Studies— Residential Appraisal Terhni nous I Institute of Real Estate Appraisal Studies— Highest and Best Use Numerous other related courses, semmars and personal study Eminent Domain and Condemnation Appraisal Experience: - Nineteen years of appraisal experience and appraisal re -6i -w Functions I am a designated member of the Appraisal Institute. Area and Type of Appraisah: -Performed appraisals and consulting in Idaho with experience in Soulhem and Southeastern Idaho on residential and comicial propeaties. oriislan of Oowpabonel enb PP6*U10 W LW4nYw agpiFIwt M u*43 ernlrs AAra tke CEFMFL=6 GENERAL APpFkW3ER EIRJAN KEITI I KIPMAm t38313USK VIEW Gr NOCAT11LI.q LID 83201 .Fr.rswY3 Eurran CC,,_M 5 05�T19.'1}14 nMarn.tien�- h.mm `E�pv[s 24-985 Kirkham Appraisals Inc. Page 83 Engagement Letter � KIRKHAM �\ Appraisals P_a. Box 2503 Pocatello, Idaho 832156 (208) 233-4132 Appraisa I Ass ignment DATE OF AGREEMENT: 0212612024 PARTIES TO AGREEMENT: Client: Land Quest Client Representative: Brandon Ratliff Address: NA City, State, Zip: NA Phone: 1208) 221-4962 E-mail: la ndqu est@hotmail_€om Appraiser Name: Brian Kirkham, MAI Company: Kirkham Appraisals, Inc. Address: PO Box 2503 City, State, Zip: Pocatello, ID 83206 Phone: 208-233-4132 E-mail: kirkhamappraisalOgmail_€om: j_kirkhamappraisal@gmail_com 24-985 Kirkham Appraisals Inc. Page 84 Client hereby engages Appraiser to complete appraisal assignments as follows: PROPERTY IDENTIFICATION Appraisal I: A 4.78+f- AC Portion of RPRCCPC04S401 Appraisal 2= 2.48 +f- AC Tract containing RPRCCPCO24406 & RPRCCPCO24409 PROPERTY TYPE Commercial INTER EST VALUED Fee Sample INTENDED USERS LandQuest Notes Na other users are intended byAppr wiser_ The appraiser shall consider the irrterrded users wherr determining the ievef of detail ra be provided in tthe.4Waiso!Report_ 24-985 Kirkham Appraisals Inc. Page 85 INTENDED USE Decisions by ownership for potential land swap TYPE OF VALUE Market value as defined by the appraisal requirements pursuant to FIRREA- DATE OF VALUE Current HYPOTHETICAL CONDITIONS, EHTRAORD1NARY ASSUMPTIONS ITal --W-*oted- APPLICABLE REQUIREMENTS OTHER THAN THE UNIFORM STANDARDS OF PROFESSIONAL APP RA ISA LPRACTICE JUSPAP] The Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute ANTICIPATED SCOPE OF WORT{ Site visit Observation of the property. Valuation approaches Sales Comparison Approach Note= Appraiser shall use all approaches necessary to develop a credible opinion of value_ APPRAISAL REPORT Form or format; Narrative 24-985 Kirkham Appraisals Inc. Page 86 CONTACT FOR PROPERTY ACCESS, IF APPLICABLE NA DELIVERY DATE Four weeks from the date of engagement DELIVERY METHOD E-mail= landquest9hotmail.com NUMBER OF COPIES 1 PDF version PAYMENT The fee of $3,640 is to be call ected prior to completion of the report and ca be mailed by the client to the add ress provided above. If the Appraiser is subpoenaed pursuant to courtorder or required to produce documents by judicial cammandr the client agrees to compensate the Appraisers for their appearance time, preparation time, travel time, and document preparation time at 5344 hourly rate then in effect plus expenses and attomeyfees. In the event the real prop" appraised is, or becomes the subject of litigation, a condemnation, or other legal proceeding, it is assumed the Appraiser will be given reasonable advanced notice, and reasonable additional time for court preparation. CONFIDENTIALrfY Appraiser shall not provide a copy of the written Appraisal Report to or disclose the results of the appraisal prepared in accordance with this Agreement with, any party other than Client, unless Client authoriZesr except as stipulated in the Confidentiality Section of the ETHICS RULE of the Uniform Standards of Professional Appraisal Practice (USPAP)- CHANGES TO AGREEMENT Any changes to the assignment as outlined in this Agreement shall necessitate a new Agreement. The identity of the client, intended users, or intended use; the date of value; type of value; or property, appraised €annot be changed without a new Agreement 24-985 Kirkham Appraisals Inc. Page 87 CANCELLATION Client may cancel this Agreement at anytime prior to the delivery of the report upon written notification to the company. Client shall pay Appraiserfor work completed on assignment prior to receipt of written cancellation notice, un less otherwise agreed upon by Appraiser and Client in writing_ NO THIRD -PARTY BENEFICIARIES Nothing in this Agreement shall create a contractua I rel ationship between the Appraiser -or the Cl lent and any third party, or any cause of action in favor of a ny th ird party. Th is Agreement shall not be €onstmed to render any person or entity a th ird-pa rty beneficiary of this Agreementr incl udingr but not limited to, a ny third parties identified herein. USE OF EMPLOYEES OR INDEPENDENT CONTRACTORS Appraiser may use employees or independent contractors at Appraiser's discretion to complete the ass ignmentr unless otherwise agreed by the parties_ Notwithstanding, Appraiser shall sign the written Appraisal Report and take full responsibility for the services provided as a result of this agreement_ TESTIMONY AT COURT OR OTHER PROCEEDINGS Unless otherwise stated in this Agreement, Client agrees that Analyst's assignment pursuant to this Agreement shall not include the Analyst's participation in or preparation forr whether voluntarily or pursuantto subpoena, any oral or written discovery, sworn testimony in ajudi€ial, arbitration or administrative proceeding, or attendance at a ny jud icial, arbitration, or administrative proceeding rel ating to this assignment_ APPRAISER INDEPENDENCE Appraiser cannot agree to provide a value opinion that is contingent on a predetermined amount. Appraiser ca nnot guarantee the outcome of the assignment in adva nae. Appra iser cannot ensure that the opin ion of value developed as a result of this Assignment wil I serve to fall itate a ny specific obj ective t y Client or others or advance anyparticular €ause. Appraiser's opinion ofvaluewill Ibedeveloped competently and with independen€er impartia I ityr and objectivity. EXPIRATION OF AGREEMENT This Agreement is valid only ifsigned by both the Appraiser and Client within 3 days of the Date of Agreement specified. GOVERNING LAW & JURISDICTION The interpretation and enforcement of this Agreement shall be governed by the laws of the state in which the Analysts principal place of business is located, exclusive of any choice of law rules_ 24-985 Kirkham Appraisals Inc. Page 88 ey Apprats.!r: $risn_IClrkha�n. . (Printad na„tej (date) By talent; )Signature) jPrutted Warne) (dare) 24-985 Kirkham Appraisals Inc. Page 89 Copyright Protection © Copyright 2024 Kirkham Appraisals Inc. Pocatello, Idaho 83206 All Rights Reserved. No part of this document may be reproduced, nor may any portion be incorporated into any information retrieval system without written permission from Kirkham Appraisals Inc., the copyright holder. The descriptions, analyses, and conclusions stated herein are intended for the exclusive use of our client, LandQuest, and other explicitly identified intended users, if any. This report should only be used for the intended use stated herein. Kirkham Appraisals Inc. retains all rights, title, and interests in all trademarks, trade names, trade secrets, data, conclusions, opinions, valuations, and other information included in, arising out of, or in any way related to this appraisal. No person or entity shall be entitled to break down, strip out, mine, or disseminate any component or portion of this report, including, but not limited to any valuations, opinions, data compilations, or conclusions. This report and all its contents are a culmination of intellectual and professional experiences, education, personal investigations, and know-how, which shall at all times remain the property of Kirkham Appraisals Inc., its sole owner. End of Report 24-985 Kirkham Appraisals Inc. Page 90 ■ 11114KIRKHAM Appraisals (Bus) (208)233-4132 P.O. Box 2503 Kirkhamappraisal@gmail.com Pocatello, Idaho 83206 AN APPRAISAL REPORT OF A 2.05+/- Acre Tract of Vacant High Density Residential Land LOCATED AT Lot 15 Legacy Park Division #2 Chubbuck, Idaho 83202 CLIENT LandQuest JINgKIRKHAM �✓\ Appraisals P.O. Box 2503 Pocatello, Idaho 83206 (Bus) (208)233-4132 October 4, 2024 Mr. Brandon Ratliff LandQuest Dear Brandon Ratliff, Re: Lot 15 Legacy Park Division #2 Chubbuck, Idaho 83202 At your request, we have appraised a real property interest for the above real estate. Our objective was to form one or more opinions about the market value for a 100% ownership interest in the subject property's fee simple estate assuming no liens or encumbrances other than normal covenants and restrictions of record. The subject property physically consists of a 2.05+/- acres portion of larger parcel RPRCCPC045401. The subject is accessed near the tennis courts in Capell Park. The land is in a developing area with office, medical office, industrial, high density residential, and vacant land uses, near a new I-15 Interstate Interchange. This tract of land is zoned "R-4" Dense Residential by the City of Chubbuck. This valuation contains analyses, opinions, and conclusions along with market data and reasoning appropriate for the scope of work detailed later herein. It was prepared solely for the intended use and intended user(s) explicitly identified in the attached report. Unauthorized users do so at their own risk. The appraisal is communicated in the attached document, which conforms to the version of the Uniform Standards of Professional Appraisal Practice (USPAP) in effect on this report's preparation date of October 4, 2024. This letter is not an appraisal report hence it must not be removed from the attached 91 -page document. If this letter is disjoined from the attached appraisal report, then the value opinions set forth in this letter are invalid because the analyses, opinions, and conclusions cannot be properly understood. In general, valuation of the subject property involves no atypical issues. All value opinions are affected by all the information, extraordinary assumptions, hypotheses, general limiting conditions, facts, descriptions, and disclosures stated in the attached appraisal report. After careful consideration of all factors pertaining to and influencing value, the data and analysis thereof firmly supports the following final value opinion(s) for the subject property as of March 11, 2024: $445,000 Market Value "As Is" Thank you for your business. Let us know how we may further serve you. Brian Kirkham, MAI Certified General Appraiser Idaho License CGA -3486 License Expiration Date: 5/9/2024 Table of Contents Overview....................................................................................................... l SalientInformation........................................................................................................ l NoteworthyIssues.........................................................................................................1 Scopeof Work..............................................................................................2 Scopeof Work...............................................................................................................2 Introduction.............................................................................................................. 2 Assignment Elements................................................................................................ 2 Relevant Characteristics.......................................................................................... 4 Extent of Services Provided...................................................................................... 5 Other Intended Use Considerations......................................................................... 5 MiscellaneousMatters.............................................................................................. 5 Appraisal Development............................................................................................ 6 ConceptExplanations............................................................................................... 8 Scopeof Work Limitation............................................................................................. 9 Report Reliance & Use Restrictions.............................................................................. 9 Scope of Work Exclusion - Insurable Value...............................................................10 Extraordinary Assumptions & Disclosures.................................................................. l l Hypothetical Conditions..............................................................................................12 Personal Property & Intangibles..................................................................................12 Definition of Market Value.........................................................................................13 Definition of Real Property Estates.............................................................................14 Non -Disclosure State...................................................................................................16 Assemblage..................................................................................................................16 Disclosures..................................................................................................17 ProfessionalStandards.................................................................................................17 Competency.................................................................................................................17 AreaData...................................................................................................18 RegionalMap..............................................................................................................18 NearbyLand Uses........................................................................................................ 34 Pocatello/Chubbuck Residential Market Analysis......................................................35 Regional Multi -Family Market Data........................................................................... 37 SubjectProperty........................................................................................41 Identification of the Property ....................................................................................... 41 LegalDescription.........................................................................................................41 AerialView..................................................................................................................42 SoilsMap.....................................................................................................................43 TopographyMap......................................................................................................... 44 SaleHistory................................................................................................................. 48 FloodHazard............................................................................................................... 48 RealEstate Taxes.........................................................................................................48 Zoning.......................................................................................................................... 48 Zoning.......................................................................................................................... 49 EnvironmentalRisks.................................................................................................... 50 SubjectProperty .......................................................................................................... 51 SubjectSite.................................................................................................................. 51 Analyses& Conclusions............................................................................52 ValueIntroduction....................................................................................................... 52 RealEstate Cycles....................................................................................................... 53 Highestand Best Use................................................................................................... 54 LandValue..................................................................................................................60 Introduction............................................................................................................ 60 Summary of Land Sales.......................................................................................... 67 Land Sales Location Map....................................................................................... 68 Analysis & Conclusions.......................................................................................... 70 ValueSummary........................................................................................................... 72 ExposureTime.............................................................................................................73 Contingent and Limiting Conditions ........................................................................... 74 Certification................................................................................................................. 81 Addenda...................................................................................................... 83 DigitalImages.............................................................................................................. 83 TechnicalQualifications.............................................................................................. 84 EngagementLetter....................................................................................................... 85 CopyrightProtection.................................................................................................... 91 Endof Report ............................................................................................................... 91 Overview • • Salient Information Property Type Vacant Tract of High -Density Residential Land Real Estate Appraised Lot 15 Legacy Park Division #2 Chubbuck, Idaho 83202 County Bannock Estate Valued 100% of the Fee Simple Estate Client LandQuest Client File Number 24-984 Most Likely Buyer Developer Effective Value Date (point in time that the value applies) March 11, 2024 Report Date (date the report is transmitted to client) October 4, 2024 Land Size (Usable) 2.05+/- Acres or 89,568+/- square feet Flood Hazard Zone X Zoning Classification "R-4" by the City of Chubbuck Highest & Best Use As Though Vacant Multi -Unit Residential Final Value Conclusion(s) $445,000 Market Value "As Is" Noteworthy Issues The subject property physically consists of a 2.05+/- acres portion of larger parcel RPRCCPC045401. The subject is accessed near the tennis courts in Capell Park. The land is in a developing area with office, medical office, industrial, high density residential, and vacant land uses, near a new I-15 Interstate Interchange. This tract of land is zoned "R-4" Dense Residential by the City of Chubbuck. No atypical factors significantly affect value. The real estate appraised is generally typical for this type of property in this locale. 24-985 Kirkham Appraisals Inc. Page 1 Scope of Work ...�� Scope of Work Introduction The Uniform Standards of Professional Appraisal Practice (USPAP) defines scope of work as "the type and extent of research and analysis in an assignment". Scope of work includes, but is not limited to: ➢ the extent to which the property is identified; ➢ the extent to which tangible property is observed; ➢ the type and extent of data researched; and ➢ the type and extent of analyses applied to arrive at opinions or conclusions. Assignment Elements The purpose of this assignment (the problem to be solved) is to form one or more opinions about value. This purpose necessitates identification of seven assignment elements listed below. 1. Client Information Client's Name ** Client's Company Name Appraiser(s) Engaged By Client's Interest In Property Appraised 2. Other Intended Users 3. Intended Use Of Report (To aid) 4. Value Opinion(s) Developed Standard / Definition Of Value Used To Form The Value Opinion(s) ** The client is always an intended user. Mr. Brandon Ratliff LandQuest The Client Owner None Decisions By Ownership Market value Advisory Opinion 30 of USPAP, which is the same definition as the one in FIRREA. 24-985 Kirkham Appraisals Inc. Page 2 Scope of Work Assignment Elements 5. Key Dates Effective Value Date (point in time the value applies) Date Property Appraised Was Observed By One Or More Appraisers Signing This Report 6. Assignment Conditions Extraordinary Assumptions Hypothetical Conditions Jurisdictional Exceptions Expected Public or Private On -Site or Off - Site Improvements Affect Value Assemblage of Estates or Component Parts Affects Value Other March 11, 2024 Land Observed March 11, 2024 One Or More Apply, Detailed Later Herein None Used None Used Not Expected Not Expected None Used 24-985 Kirkham Appraisals Inc. Page 3 Scope of Work Relevant Characteristics The seventh assignment element is relevant characteristics about the property appraised. These characteristics are typically categorized as physical, legal, and economic. Physical attributes of the property appraised are presented later in the Subject section of this report. Some characteristics are identified below. Atypical issues are listed in the Noteworthy Issues section and may be further detailed elsewhere herein. Unless specifically stated otherwise, the estate appraised (listed below) assumes no adverse leases, liens or encumbrances other than normal covenants and restrictions of record. 7a. Physical Existing Property Use Property Use Reflected In One Or More Value Opinions Sources of Information About the Property Appraised Included 7b. Legal Category Of Property Appraised Estate(s) Appraised Legal Issues Considered Environmental Concerns 7e. Economic Effect Of Lease(s) On Value Cost Information Type of Reconstruction Cost Used Source of Reconstruction Cost Information Vacant Land Vacant Land Just An Exterior Observation; Online Public Records; Public Records in Government Office Real Property Fee Simple No Atypical Legal Issues No Known Environmental Concerns No Leases Hence Not Applicable Not Applicable Not Applicable 24-985 Kirkham Appraisals Inc. Page 4 Scope of Work Extent of Services Provided Number of Final Value Opinions Developed Value Opinion(s) Reflect the Worth Of the Property Appraised Extent Of Report Preparation Other Reporting Requirements Extent Of Data Research Data Sources Documents Considered Data Verification Extent Of Subject Observation by One Or More Appraisers Signing Report Other Intended Use Considerations Client's Prior Engagement Of Appraisal Services Loan To Value Ratio Atypical Issues Assignment Complexity FIRREA Compliance Insurable Value Miscellaneous Matters Scope of Work Agreement One As Is An Appraisal Report Not Applicable Extensive Local MLS; Private Data Provider Service; Public Records at Gov't Office(s); Public Records on Gov't Website(s); Online Public Records; Other Appraisers; Real Estate Sales Agents; Buyers and / or Sellers; Landlords and / or Tenants None Direct and Indirect Methods Moderate Land Viewing Specifics of this viewing, if any, are detailed in the Extraordinary Assumptions & Disclosures section of this report. Never Not Applicable No Atypical Issues Typical Complexity FIRREA Not Applicable Insurable Value Is Not An Intended Use Agreement in Addenda 24-985 Kirkham Appraisals Inc. Page 5 Scope of Work Appraisal Development Appraisal development is the extent of research and analyses that produce one or more credible opinions of value for one or more specifically identified intended users and an explicitly stated intended use. In this context, credible is defined as "worthy of belief'. Depending upon the intended use, intended users, and agreements between the appraiser and the client, the appraisal development process may include several, but not necessarily all of the following tasks. ➢ observation of the property appraised ➢ research for appropriate market data ➢ data verification ➢ consideration of influential market area, physical, economic, and governmental factors ➢ determination of the subject's highest and best use(s), if appropriate ➢ development of one or more applicable approaches to value ➢ reconciliation of value indications ➢ preparation of this report In most cases, the core valuation process begins with a highest and best use analysis. This is essential because it establishes a framework for the proper selection of comparables. Cited comparables should have the same highest and best use as the property appraised. 24-985 Kirkham Appraisals Inc. Page 6 Scope of Work Appraisal Development If some property modification like new construction is contemplated, a feasibility analysis may be appropriate. In some cases, feasibility may simply be justified by inferred market evidence like low vacancy or rising rents. According to USPAP, all approaches that are applicable to the interest being appraised and necessary to produce credible results must be developed. The type of highest and best use; extent of feasibility considered; and the relevance of each major approach are listed below. Highest and Best Use Feasibility Analysis (a more detailed study separate from highest & best use) Cost Approach Sales Comparison Income Approach An Inferred Demand Analysis Separate Feasibility Analysis Not Developed Not Applicable And Not Included In Report Applicable And Included In Report Not Applicable And Not Included In Report Quoting "The Appraisal of Real Estate" Thirteenth Edition published by the Appraisal Institute, page 186 says: "Highest and best use analysis and feasibility analysis are interrelated, but feasibility analysis may involve data and considerations that are not directly related to highest and best use determinations. Such analyses may be more detailed than highest and best use analysis, have a different focus, or require additional research. " Applicable and necessary approaches were selected for development after consideration of available market data, intended use, and intended user(s). An approach considered not applicable was omitted because this methodology is not appropriate for the property interest being appraised, or sufficient data to properly develop the approach was not available. Any approach judged not applicable, yet included in this report, was developed solely at our client's request. Data used to develop an inapplicable but included approach has a low to nil degree of comparability to the subject. Hence, no emphasis was given an approach deemed not applicable but included. Furthermore, no liability or responsibility is assumed for an approach considered not applicable but included at the client's request. 24-985 Kirkham Appraisals Inc. Page 7 Scope of Work Concept Explanations Intended use and all intended user(s) should be weighed heavily during the scope of work decision. A single intended user who frequently engages appraisal services is likely very knowledgeable about the appraisal process. For this type user, the appraisal development and reporting for less complex property types might be toward the lower end of the spectrum. By contrast, multiple intended users, especially those with opposing motivations, likely need extensive appraisal development and reporting. Litigation is a prime example when a thorough appraisal development and detailed reporting is warranted. A loan to value ratio reflects risk. For commercial -grade loans, ratios over 75% are generally regarded as risky. If a contemplated loan is viewed as risky, then the extent of appraisal development and the level of report detail should be more comprehensive. Similarly, more complex properties generally warrant more thorough analyses and more extensive report details. Prior engagement of appraisal services by a client implies a level of awareness about the appraisal process. A greater awareness may justify a less thorough level of report detail whereas the opposite is true for an individual who has never engaged an appraisal. A Jurisdictional Exception is an assignment condition, which voids a portion of USPAP that is contrary to law or public policy. When a Jurisdictional Exception applies, only the contrary portion is void. The remainder of USPAP remains in full force and effect. Jurisdiction Exceptions always shrink USPAP, not expand it. Data verification affects reliability. Direct data verification confirms information used in the report with one or more parties who have in-depth knowledge about physical characteristics for the property being appraised, or related financial details. Indirect verification employs information obtained from a secondary source like a data reporting service, a multiple listing service, or another appraiser. Direct verification is generally more time- consuming and costly, but also more reliable. Information from all data sources was examined for accuracy, is believed reliable, and assumed reasonably accurate. However, no guaranties or warranties for the information are expressed or implied. No liability or responsibility is assumed by Kirkham Appraisals Inc. or the appraiser(s) for any inaccuracy from any seemingly credible information source. 24-985 Kirkham Appraisals Inc. Page 8 Scope of Work Concept Explanations A statement about observation of the subject property by the appraiser(s) is listed above. If the subject was observed, this viewing was not as thorough as a professional property inspection. A professional inspector determines the precise physical condition, remaining useful life, and operability of major building components like the structural system, roof cover, electrical system, plumbing, and heating plant. Inspectors typically do not ascertain size of the building, or characteristics of the land. By contrast, an appraiser commonly ascertains both land and building size. Ordinarily, appraisers do not determine operability, or remaining useful life of building systems. An appraiser typically views real estate to determine only general attributes like physical condition of the building as a whole, site topography and access, building size, construction quality, floor plan, and functionality of the property as a whole. For this appraisal, no probes, investigations, or studies were made to discover unapparent, adverse physical features. Highest and best use analyses can be categorized into two groups - inferred and fundamental. A fundamental analysis is quantified from broad demographic and economic data such as population, household size, and income. Supply is inventoried. Subject specific characteristics are considered. Then, the relationship between supply and demand is weighed to determine a specific highest and best use for the subject. An inferred analysis uses local trends and patterns to infer a general highest and best use for the subject. For an inferred analysis, market dynamics that might be considered include prices, market exposure times, rents, vacancy, and listings of similar real estate. Inferred analyses emphasize historical data while fundamental analyses are based on future projections. The kind of highest and best use analysis utilized in this assignment is listed above. Scope of Work Limitation All readers of this report should be aware the foundation, for conclusions communicated herein, was based on and limited to an inferred market analysis, not a fundamental market study. Our scope of work agreement with our client does not include a detailed fundamental analysis. A fundamental analysis forecasts demand from broad demographic and economic data like population and income. Existing supply is inventoried. Then the relationship of supply and demand is weighed to determine net demand. An inferred analysis is based on local trends and patterns from which inferences are made. Sales, listings, marketing intervals, and/or price change for other similar land infer there is adequate demand for the subject parcel at a price level congruous with this data. If the client desires an in-depth analysis regarding the subject's marketability, potential alternate uses, or a numeric demand analysis, it is suggested a detailed fundamental market analysis be prepared. Report Reliance & Use Restrictions No liability is assumed, expressed, or implied by Kirkham Appraisals Inc., or the appraiser(s) for unauthorized use of this report. Only those persons, parties, entities, companies, corporations, partnerships, associations, or groups that are explicitly identified as an intended user on page 2 may rely on, and use this report. There are no implied, suggested, inferred, consequential, or indirect intended users of this report. Unauthorized users should not use, or rely on any portion of this document. Unauthorized users do so at their own risk and peril. 24-985 Kirkham Appraisals Inc. Page 9 Scope of Work Exclusion - Insurable Value The cost approach may or may not have been developed herein. Unless explicitly stated otherwise, the cost approach was developed solely to support the subject's market value. Use of this appraisal, in whole or part, for another purpose is not an expected intended use. Nothing in this appraisal should be used, or relied upon to determine the amount or type of insurance coverage to be placed on the subject property. The signatory / signatories to this report assume no liability for, and do not guarantee that any insurable value inferred from this report will result in the subject property being adequately insured for any loss that may be sustained. Since labor costs, material costs, building codes, construction intervals, and governmental regulations are constantly changing, the cost approach may not be a reliable indication of replacement or reproduction cost for any date other than this report's effective value date. 24-985 Kirkham Appraisals Inc. Page 10 Extraordinary Assumptions & Disclosures An extraordinary assumption is defined by the Uniform Standards of Professional Appraisal Practice (USPAP) to be "an assumption, directly related to a specific assignment, as of the effective date of the assignment results, which, if found to be false, could alter the appraiser's opinion or conclusions". Extraordinary assumptions presume as fact otherwise uncertain information. In other words, this type assumption involves uncertainty about an underlying premise. An example is a survey that displays a lot size. If the lot size is later found to be much smaller, then the value conclusion may be negatively affected. USPAP Standard Rule 1-2(f) requires the identification of all extraordinary assumptions that are necessary for credible assignment results. This appraisal employs the following extraordinary assumptions. ➢ Features of the subject site such as legal description, dimensions, size, etc. were obtained from a plat map provided by the client. The subject has not yet been split from the larger parcel, and an assumption is made based on the plat map that the land can be split as indicated. If the land cannot be split as indicated, the appraisal will change. All information taken therefrom is assumed reasonably correct. ➢ Observation of the subject was limited to a moderate viewing of the entire property. It is assumed the land has no subsoil defects. No soiling borings were made. Furthermore, the appraiser(s) did not attempt to study, dig, probe, investigate, detect, remove materials, or discover unfavorable physical features on, above, or below the ground. ➢ Real estate tax information for the subject was obtained from a reputable online source, so it is assumed reasonably correct. Moreover, this information is assumed the most recent that is expeditiously available to the public. ➢ A public water system and public sewer main are connected to the subject structure, or available near the subject's lot lines. This appraisal assumes these systems possess sufficient capacity to serve the intended use of the subject improvements, if any. This appraisal also assumes the water is potable and non -contaminated. If these systems were inadequate to serve the subject's intended use, then the subject's value and marketability would be adversely affected. ➢ Assumptions and presumptions discussed in the Noteworthy Issues section of this report, if any, are incorporated by way of reference into these Extraordinary Assumptions & Disclosures. ➢ A recently issued title policy was not furnished to the appraiser(s). If a value -impairment is identified or suggested in a title policy, another professional report, or some other document, this appraisal does not address issues that are significantly atypical for a valuation of this type property unless specifically identified in the Scope of Work and/or Noteworthy Issues section of this report. The above extraordinary assumptions as well as other assumptions anywhere herein are integral premises upon which the conclusions in this document are based. If any of these assumptions are later found to be materially untrue or inaccurate, then this report's assignment results may or may not be affected. 24-985 Kirkham Appraisals Inc. Page 11 Hypothetical Conditions USPAP defines a hypothetical condition as "a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis." Hypothetical conditions assume conditions that are contrary to known fact. An illustration is the current valuation of a proposed home. For the purpose of a rational analysis, it is assumed the home exists on the effective value date, but it is known the home is nonexistent. Another example is a new zoning classification, that a property does not have today, but the new zoning is assumed for the purpose of a logical current valuation. Uncertainty is not involved with a hypothetical condition. An essential premise underlying the valuation is known not to exist on the effective value date. USPAP Standard Rule 1-2(g) requires the identification of all hypothetical conditions that are necessary for a credible value opinion. This appraisal employs no hypothetical conditions. Personal Property & Intangibles Personal property is movable and not permanently affixed to the real estate. Examples of personal property are freestanding ranges, refrigerators, tables, desks, chairs, beds, linen, silverware, hand tools, and small utensils. An intangible is a nonphysical asset like franchises, trademarks, patents, goodwill, and mineral rights. Personal and intangible property included in this appraisal's value opinion, if any, is considered typical for this type real estate, yet insignificant to the value opinion. Therefore, non -realty is not itemized or valued herein. Moreover, this report's final value conclusion(s) excludes unaffixed equipment, detached trade fixtures, and chattel unless specifically stated to the contrary. 24-985 Kirkham Appraisals Inc. Page 12 Definition of Market Value The definition of market value is used in all federally regulated transactions that exceed a minimum amount. This definition is mandated by Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989. The exact same definition was published in the Federal Register several times by different federal agencies. Some printings are: 12 C.F.R. Part 34.42(g); 55 Federal Register 34696, August 24, 1990, as amended at 57 Federal Register 12202, April 9, 1992; and 59 Federal Register 29499, June 7, 1994.) Federal agencies publishing the exact same definition include the • Office of the Comptroller of the Currency (OCC) as 12 CFR 34, subpart C • Federal Reserve Board (FRB) as 12 CFR 225, Subpart G • Federal Deposit Insurance Corporation (FDIC) as 12 CFR 323.2, Definition (g) in 55 Federal Register, 33,888 August 20, 1990, Effective September 19, 1990. • Office of Thrift Supervision (OTS) as 12 CFR 564 • National Credit Union Administration (NCUA) as 12 CFR 722 The exact same definition was again published jointly by the OCC, OTS, FRS, and FDIC on page 61 of the "Interagency Appraisal and Evaluation Guidelines". These guidelines were published in the Federal Register on December 10, 2010 as Volume 55, page 77472. All the above citations defined market value as: "the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition 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 both typically motivated, • both parties are well informed or well advised, and acting in what they consider their own 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. " Virtually the same defmition is also cited in Advisory Opinion 30 in the Uniform Standards of Professional Appraisal Practice (USPAP). 24-985 Kirkham Appraisals Inc. Page 13 Definition of Real Property Estates One or more of the following underlined legal estates or interests are valued in this report. Definitions of three estates, quoted immediately below, are from The Dictionary of Real Estate Appraisal, 6th Edition; published by the Appraisal Institute, copyright 2015. Fee Simple Estate "Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. " Leased Fee Estate "The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires. " Leasehold Estate "The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease." The words "Leased Fee Estate" constitute a real estate term. This term is not defined in Black's Law Dictionary, the Deluxe Eight Edition. However, leased fee estate is defined by USLegal.com as: "an ownership interest held by a landlord with the right of use and occupancy conveyed by lease to others; usually consists of the right to receive rent and the right to repossession at the termination of lease." In effect, the definitions of "lease fee estate" by the Appraisal Institute and USLegal.com are equivalent. Chicago Title Insurance Company, one of the largest in the country, does not use the term "Lease Fee Estate" in their title insurance policies. Chicago Title does insure the "Fee Simple Estate Subject to the Leases". For all practical purposes, the terms "Leased Fee Estate" and "Fee Simple Estate Subject to the Leases" are equivalent. Market value of the leased fee estate represents the worth of real property to the landlord (the lessor) as encumbered by terms set forth in one or more leases. A leasehold estate is the tenant's (the lessee's) interest in real property. A lease is an encumbrance because it limits or precludes the landlord's right of use. If a property is unencumbered, then usage of the term "fee simple estate" could be strictly or narrowly interpreted to mean the property is not encumbered by lease. If there are no leases for a multitenant facility, then the building has no lease income. Under this interpretation, the value of the fee simple (VFS) would be less than the value of the leased fee (VHF). Accordingly, the VFS < VHF because lease -up costs must be paid by a buyer to find tenants. In effect, total lease -up cost would constitute a penalty to the property's value imposed by a buyer. Components of a total lease -up cost include leasing commissions, rent loss, concessions, tenant improvements, any other cash expenditures, and buyer incentive to undertake the risk of lease -up. 24-985 Kirkham Appraisals Inc. Page 14 Definition of Real Property Estates According to the Appraisal Institute course General Appraiser Income Approach, Part 2 - page 231, there are two interpretations of the term "fee simple estate". A second interpretation for fee simple estate is a value -oriented definition used by many real estate appraisers. For valuation purposes, market value of the fee simple is the worth of the property assuming it is already leased at market rent to a level of stabilized occupancy. Under this interpretation, the VFS >_ VHF because lease -up costs to find tenants are already paid. An extremely important concept in the valuation of leases is the relationship between market rent or income (IFS) and contract rent, the rent stated in a lease (IAF). If the contract rent is below market rent (IAF < IFS), the tenant enjoys an advantageous position called a positive leasehold interest. Then, the value of the leased fee is usually less than the value of the fee simple (VHF < VFS). If contract rent exceeds market rent (IAF > IFS), then the landlord has an advantage while the tenant has an unfavorable position called a negative leasehold interest. When contract rent equals market rent, then the numerical value of these two estates is equal but the rights of each estate are distinctly different. In essence, the difference interpretations for the fee simple estate involve lease -up costs. If fee simple is interpreted to mean no leases encumber the property, then a buyer of a multitenant facility would incur lease -up costs. These cost would likely be substantial so a prospective buyer would penalize the property by the amount of the total lease - up cost, which is detailed above. If fee simple is interpreted to mean the value of real property already leased up to stabilized occupancy at market rent, then no lease -up is necessary so no lease -up penalty is appropriate. For valuation purposes in this report, three estates are defined below. • Market value of the fee simple estate for a single -user property like a one -user building or vacant land represents the worth to the most probable buyer via the sales comparison approach. Income generation on a rental basis is not an important factor to this buyer. Property suitability for the buyer's own use or use control are the primary purchasing criteria. Lease -up costs are not relevant. In this context, fee simple means the property is not encumbered by lease. • The fee simple estate for a multiple-tenantfacility is different from the one immediately above. A different interpretation is appropriate for a building designed to generate real estate rental income like a shopping center or apartment building. This estate for this type property is defined as the worth to the most probable buyer assuming the property is already leased to a level of stabilized occupancy at normal market terms including market rent. Lease -up costs are assumed already paid so a lease -up penalty is not appropriate. • An investment grade, leased, single -user building is best valued in a fashion that is similar to a multiple - tenant property. Hence, the interpretation for fee simple in the immediately preceding paragraph is best for an investment grade, leased, single -user building. • Market value of the leased fee estate is defined as the worth of real property to its current owner as encumbered by terms specified in one or more leases. • Lastly, a leasehold estate is defined as one tenant's interest in real property as defined by a lease. These definitions are crucial valuation concepts in this report. 24-985 Kirkham Appraisals Inc. Page 15 Non -Disclosure State Idaho is a non -disclosure state. This means essential information like grantor, grantee, sale prices and sale dates for real estate transactions are not listed in public records. Hence, appraisers must gather key details from parties involved who have no incentive to cooperate. Often appraisers are compelled to obtain the information from secondary sources. This lessens reliability of the data and lengthens the time required to complete a proper appraisal. Kirkham Appraisals Inc. discloses it made reasonable attempts, within the context of the scope of work, to obtain all key information from seemingly reliable sources; but common sense suggests some data may not be completely accurate. Assemblage USPAP Standard Rule 14(e) requires an analysis of the assemblage of various estates or component parts that affect value. In this case, no assemblage is expected so value is not affected. 24-985 Kirkham Appraisals Inc. Page 16 Disclosures .. • —11L:l Professional Standards All leading professional appraisal organizations, the U.S. Congress, all state legislatures, and numerous legal jurisdictions recognize the Uniform Standards of Professional Appraisal Practice (USPAP), promulgated by the Appraisal Foundation. Revised biennially to keep it contemporary, these standards set forth ethical practices and proper procedures for a competent appraisal. This appraisal fully complies with all relevant portions of the USPAP version in effect on the report date. It also complies with the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA), a federal law. The report date is shown in the Salient Information. Competency The person signing this report is licensed to appraise real property in the state the subject is located. I affirm I have the experience, knowledge, and education to value this type property. I have previously appraised similar real estate. 24-985 Kirkham Appraisals Inc. Page 17 Rigby 'OUc n Old. ho Fall 4 OAM ',*Blackfcat *Port tiall : � Irobject. Property.,`' •Abe rdce l f;y s T.; IMP., k 0 rr3er-c3n Fal 9 r } .. } •L'a'va Hoi Springs . f2z�- &annod4 County; 1D 46 gannode County; 1D (15005) Geography; County prepared by Esi it Toni_ . b 0 I s91~ Lgij 9fi mi 24-985 Kirkham Appraisals Inc. Page 19 elesn- Summary Bannock Ccunty, Id 46 Prepared by Esri BannockCaunty, ID (15005} Geography: County Bannock Count... Population 2011) Population 82rS39 2020 Population 87,018 2023 Papulation 89.028 2028 Papulation 90,424 201(1-2020 Annual Rate 0.49% 202(1-2023 Annual Pate 0.72% 2023-2028 Annual Rate 0.31% 2020 Male Population 49.7% 202(1 Female Population 5(1.3% 2020 Median Age 34.7 2023 Male Papulation 511.4% 2023 Female Population 49.546 2023 Median Age 34.0 In the identified area, the current year population is 89,07.0. In 2020, the Gen sus count in the area was 87,1118. The rate of change since 2020 was 0.72% annually. The five-year projection far the population in the area is 90,474 representing a change of (1,31% annually from 2023 to 2(128. Currently,, the popu lation is 50.4% male and 49.6% female. Median Age The median age in this area is 34.0, compared to U.S. median age of 39.1. Race and Ethnicity 2023 White Alone 193.396 2023 Black Alone 1.096 2023 American Indian{Alaska Native Alone 3.496 2023 Asian Alone 1.4% 2023 Pacific Islander Alone 0.3% 2023 Other Rare 3.3% 2023 Two or More Races 7.2% 2023 Hispanic Origin (Any Pa€e) 9.5% Persons of Hispanic origin represent 9.5% of the papulation in the identified area compared to 19,446 of the U.S. papulation, Persons of Hispa nic Origin may he of any rare. The Diversity Index, which measures the probability that two people from the same area will he from diFFerent raou;lethnic groups, is 41.9 in the identified amar compared to 72.1 for the U.S. as a whole. Households 2023 Wealth Index 58 201(l Households 30,682 2020 Households 32,4,38 2023 Households 33,433 202E Households 34r298 2010-2020 Annual Pate 0.56% 2020-2023 Annual Rate 0.93% 2023-2028 Annual Pate 0.51% 2023 Average HDusehold Size 2.50 The household count in this area has changed from 32438 in 2020 to 33,433 in the current year, a change of 0.93% annually. The five-year projection of households is 34,2919r a eha nge of 0.51% annually from the current year total. Average h ousehold size is currently 2.50, compared to 2.51 in the year 2020. The number of families in the current year is 22r235 in the specified area. baka Holt; Iricarne Is expresu i In erste nk dollars_ HgUling a ffWpblllky In&eK and Perctnt of Income For H&t:l;"e ra"latlons are only ava liable fix arm Wth yp Or more owrier-62)cupied h,ousinp units. The Gini InAes nlrEiWK4% tltp err ent w which the di sulbuduo of liKomW or aonsump_lon among Individuals or hoLneWlIft wlthlil ari et0r,8rrrg deuiateLi WOMB perfed&y equal fWV2X W_ A Ori indek of 0 reoreMrit3 perTe€t equality, rihlle ari Index OT 100 lMolie& per Te€t lilequally. SOuMe: U5_ CtnSUS bureau. EVI FoeenbSM Fot x023 End 2026. ESM wave t&d Census .MQ Into 2424 peagraprq and Census 2020 data. 021123 Esrl December 19, 2023 Page 1 of 2 24-985 Kirkham Appraisals Inc. Page 20 elesn- Summary Bannock County, Id 46 Prepared by Esn Bannock County, ID (15005} Geography: County tlannodt Count... Mortgage Income 2423 Percent of Income far Mai#gage 27.2% Median Household Income 2023 Median Household In€ome $63rBN 2028 Median Household In€ome 575,591 2023-2028 Annual Rate 3A2% Average Household Income 2023 Average Household Income s83r449 2028 Average Household Income s97r3A9 2023-2028 Annual Rate 3.14% Per Capita Income 2023 Per Capita In€ome $31,413 2028 Per Capita In€ome 537,019 2023-2022 Annual Rate 3.33% GINIIndex 2023 G ni Index 39,5 Households by In€orae Current median household income is 563,M in the area, compared to 572,603 for all U.S. households. Median household income is projected to be 575591 in five years, compared to $82,410 for all U.S. households Current average household income is $:133,449 in this arear compared to $11]7,006 for all U.S. households, Average household income is projected to be $97r389 in five years, compared to $122r048 for all U.S. households Current per capita income is $31,413 in the arear compared to the U.S. per capita income of 541,310, The per capita income is projected to he 537,010 in five yearsr compared to $47,525 for all U.S. households Housing 2023 Housing Affordability Index 91] 2010Total Housing Units 33,191 2010 Owner occupied Housing Units 20,817 2010 Renter Occupied Housing Units 91865 2010 Vacant Housing Units 2,509 2020 Total Housing Units 34,903 2020 Owner occupied Housing Units 21,935 2020 Renter Occupied Housing Units 10,499 2020 Vacant Housing Units 2,465 2023 Total Housing Units 35,949 2023 Owner occupied Housing Units 22,272 2023 Renter Occupied Housing Units 11,161 2023 Vacant Housing Units 2,515 2028 Total Housing Units 36,678 2028 Owner occupied Housing Units 23,074 2028 Renter Occupied Housing Units 11,224 2028 Vacant Housing Units 2,386 Socioeconomic Status Index 2023 Smiceconomi€ Status Index 50.8 Currentlyr 62.0% of the 35,949 housing units in the area are owner occupied, 31.0%, renter occjpied; and 7.0% are vacant. Currently, in the U.S., 58.5% of the housing units in the area are owner occupied; 31.7% are renter o-ocupied, and 9.13°,6 are vacant. In 21]20r there were 34,903 housing units in the area and 7.146 vacant housing units. The annual rate of change in housing units since 2021] is 0.91%. Median home value in the area is $288,957, compared to a median home value of $308,943 for the U.S. In five yearsr median value is projected to change by 3.67% annually to 5346r167. Bata Holt; Iricame Is expresu t in current ddlare_ Hgtating AffWphlllty In6ex and Percent of Income W Mortgage ta"Iti ms are only ava liable fix arm wM 50 Or more Owrler-62)cuped t,ousirq units. The Gini InAes nt{gWrej ft extaivt w which the di sulbudcmi of Womq or consumption among individuals or hoLnewitlt; wlthln ars ecdaomg deviates from a peneisy equal fWV2nuon_ A Ori rhtek of 0 represents perfe€tequality, whlle ars Index df 100 Implies perfect Inepuallity. SouMe: US_ Cerkkd bureau. €VI FoeeCaitS for x023 arm 2026. E&M myA a ted Census mla Into 2a2a geograpity MCI census 2920 data. 021123 Esrl December 19, 2423 Page 2 of 2 24-985 Kirkham Appraisals Inc. Page 21 elesn- Market F Bannock County, Id 46 Prepared by Esri Bannock County, ID (16045} Geography: County Bannock Count... Papulation Summary 2010 Total Population 82,839 2020 Total Population 87,018 2420 a'oup Quarters 2,240 2023 Total Population 69,078 2423 Group Quarteis 2,240 2028 Total Population 94,474 2423-2028 Annual Rabe 0.31% 2D23 Total Daytime Papulation 87,162 Workers 36,574 Residents 54,588 lllousehold Summary 2010 Households 34,682 2010 Average Household Size 2.64 2020 Total Households 32,438 2420 Average Household Size 2.61 2023 Households 33,433 2423 Average Household Size 2.60 2026 Households 34,298 2428 Average Household Size 2.57 2423-2028 Annual Rabe 0.51% 2010 Families 24,836 2410 Average Farrily,r Size 3.17 2023 Families 22,235 2423 Average Farrily Size 3.13 202E Families 22,814 2426 Average Family Size 3.09 2023-2028 Annual Rate 0.52% Hlausing Unit Summary 2000 Housing Units 29,102 Owner Dmupied Housing Units 66.0°16 RenbEr Occupied Housing Units 27.4% Vacant Housing Units 6.6% 2010 Housing Units 33,191 Owner D€mpied Housing Units 62.7°16 Renber Occupied Housing Units 29.7% Vacant Housing Units 7.6% 2020 Housing Units 34,943 Owner Ckooupied Housing Units 62.9% Wmiter Occupied Housing Units 3D.1% Vacant Housing Units 7.196 2023 Housing Units 35,949 Owner Dmupied Housing Units 62.0% Renber Occupied Housing Units 31.0% Vacant Housing Units 7.0% 2026 Housing Units 36,678 Ovrner CK=pied Housing Units 62.9°16 Renber Occupied Housing Units 30.6% Vacant Housing Units 6.5% Data Notee Household population includes persons not residing in group quarters. Average Household Size is the household population divided by total households. persons in Families include the householder and persons related to the householder by birth, marriage, or adoption. Per Capita Income represents the income received by all persons aged 15 years and over divided by the Iota I population. SOUFCO: Esri forecasts for 2023 and 2029. U.S. Census Bureau 2000 and 2010 decennial Census data converted by Esri into 2020 aeon raohx .Z:�2023 Esri December 19, 2023 Page 1 of a 24-985 Kirkham Appraisals Inc. Page 22 Bannock County, Id 46 BannockCaunty, ID (15045} Geography: County Prepared by Esri Bannock Count.. 2023 Households by Income Household Income Base 33,433 <$15.000 10.7% 515.000 524r999 8.7% 525r004 S34r999 5.7% 535x006 S49r999 11.6% S50r004 574r999 24,2% $75x004 - $99r999 14.5% 5100.000 5149,999 17.9% S150r000 5159,999 6.7% 529 0.000+ 3.3% Average Household Income $83,449 2026 Households by Income Household Income Base 34,298 <$15,000 8.2% 515r004 524r999 7,4% S25r004 S34r999 4.7% $35r004 S49r999 9.6% SWr004 S74r999 19.6% $75x004 399r999 15,4% 5160r000 5149,999 21.1% 51.50r000 5159,999 9.3% 520Or000+ 4.7% Average Household Income $97,389 2023 {}caner Occupied Hlousing Urrtr by Value Total 22,272 <$50,000 7.2% 550r000 - S99r999 4.B% 5140r000 5149,999 7.0% 5150x000 5199,999 6,13% 5200r000 5249,999 12.3% $250x009 5259,999 15,3% #340.000 5359,999 27,2% #400A00 5459,999 9.4% S5UOr000 5749,999 8.0% 575Or000 5999,999 1.5% 51,000,000 - $1.499,999 0.4% 51,500400 - $ir999,999 4,096 52,000,000 + 0.1% Average Home Value $344,640 2028 Owner Occupied Housing Units by Value Total 23,074 <$56,000 4.B% s50r004 - 599r999 2,B% 5140r060 5149,999 3.1% 5150x000 3159,999 1.9°16 s200r000 -s249,999 5.9% 5250,000 - 5299,999 14.13% 5300,000 - 5359,999 36.3°x6 594Or000 $499,999 16,2% 5500.090 5749,999 12,2% S750A00 5999,999 1.5% 51,000,000 - $1.499,999 0.4% S1x500400 - $1r999,999 4.0% 52,000,000 + 0.1% Average Horne Value $361,076 Data Note: In€ame represents the preceding year, expressed in current dollars. Household income includes wage and salary eamingsr interest dividends, net renter pensioner SSI and welfare paymentsr child suppam and alimony, Source: Esri forecasm for 2023 and 2029. U.S. Census Bureau 2006 and 2010 decennial Census data converted by Esri into 2020 aeon raohy; December 19, 2023 .Z:�2023 Esri Page 2 of 8 24-985 Kirkham Appraisals Inc. Page 23 F04AMM warket Prc (9)2023 Esri December L9, 2023 Page 3of8 24-985 Kirkham Appraisals Inc. Page 24 Bannock County, Id 46 BannockCaunty, Id (15005) Geography; County Prepaid by Esii Bannock Count.. Median Household Income 2023 $63,898 2028 $75,591 Median Home Value 2023 $288,957 202B $346,107 Per Capita Income 2023 $31,413 2028 $37,010 Median Aye 2010 31.5 2020 34.7 2023 34.0 2028 34.3 2020 Population by Age Total 87,018 0 - 4 6.6% 5-9 7.4% 10-14 7.7% 15-24 15.396 25-34 13.596 35-44 13.0% 45-54 10.2% 55-64 11.0% 65-74 9.6% 75 - B4 4.3% 85+ 1.596 1 B + 74.0% 2023 Popdatian by Aye fatal 89,078 0-4 7.4% 5-9 7.3% 10-14 7.1% 15-24 14.9% 25-34 14.796 35-44 13.096 45-54 9.696 55 - 64 10,B96 65-74 9.296 75 - B4 4.4% 85+ 1.696 1 B + 74.2% 2028 Popdatian by Aye Total 90,474 0 - 4 7.5% 5 - 9 7.2% 10-14 7.0% 15-24 15.1% 25-34 13.5% 35-44 13.3°16 45-54 10.3% 55 - 64 9.6% 65-74 9.2% 75 - B4 5.5% 85+ I.B% 18 + 74.5% 202.0 PaPUlation by Sex Sourcee Esri fnrecastr. for 2023 and 2028. U.S. Census Bureau 2000 and 2010 decennial Census data canverud by Esri into 2020 neaarwhx (9)2023 Esri December L9, 2023 Page 3of8 24-985 Kirkham Appraisals Inc. Page 24 elesn- Market F Total 82,839 Bannock County, ID 46 Prepared by Esn Black Alone Bannock County, ID (15045} American Indian None 3.2% Geography: County 1.3% Pacific Islander Alone 0.2% Bannock Count.. Males Two or More Races 43,211 Females 6.7% 43,807 2023 Population by Sex 2824 Popdatinn by Race{Ethnicity Males 87,018 44,930 Females Blade Alone 44,145 2028 Population by Sex 3.6% Asian None Males Pacific Islander AJone 45,581 Females 3.2% 44,893 2014 Population by Race/Ethnicity Total 82,839 White Alone 89.13% Black Alone 4.13% American Indian None 3.2% Asian None 1.3% Pacific Islander Alone 0.2% Some Other Race Alone 2.1% Two or More Races 2.7% Hispanic Origin 6.7% Diversity Index 29.3 2824 Popdatinn by Race{Ethnicity Total 87,018 White AJone 83.13% Blade Alone 4.9% American Indian Nonce 3.6% Asian None 1.4% Pacific Islander AJone 0.3% Some Other Race Alone 3.2% T%,vo or More Races 6.9% Hispanic Origin 9.2% Diversity Index 44.9 2023 Population by Race/Ethnicity Total 89,078 White Alone 83.3% Blade Alone 1.0% American Indian Alone 3.4% Asian None 1.4% Pacific Islander Alone 4.3% Some Other Race Alone 3.3% Ttvo or More Races 7.2% Hispanic Origin 9.5% Diversity Index 41.9 2028 Popdatiun by Race/Ethnicity Total 94,474 White AJone 82.1% Blade Alone 1.1% American Indian Nome 3.3% Asian None 1.5% Pacific Islander Alone 0.4% Some Other Race Alone 3.6% Two or Mae Races 8.0% Hispanic Origin 10.1% Diversity Index 44.0 Data Note: persons of Hispanic Origin may be of a ny race. The diversity Index measures the probabi lity that two people from the same area wi II be from different racelethnic groups. Source: Esd fore€asts for 2023 and 2029. U.S. Census Bureau 2006 and 2010 decennial Census data converted by into 2020g�raphy, December 19, 2023 .Z:�2023 Esri Page 4 of 8 24-985 Kirkham Appraisals Inc. Page 25 elesn- Market F Bannock County, Id 46 Prepared by Esn Bannock County, ID (15045} Geography: County Bannock Count... 2024 Popdatian by Relationship and Household Type Total 87,018 in Households 97.4% Householder 37.3% Opposite-sex Spouse 18.2% Same-Sex Spouse 0.2% Opposite-Sex Unmanied Partner 2.7% Same-Sex Unmarried Partner 4.1% Biological Child 28.1% Adopted Child 4,13% Stepchild 1.7% Grandchild 2.2% Brother or Sister 0.9% Parent 0.7% Parent-in-law 4.2% Son-in-Faw or Daughter-in-law 4.4% Other Relatives 0.9% Faster Child 4.1% Other Nonreladves 3.1% In Group Quaters 2.6% Institutionalized 1.0% Noninstihitionaliaed 1.5% 2023 Population 25+ by Educational Attainment Total 56.311 Less than 9th Grade 1.3% 9th - 12th Grader No Diploma 5.0% High School Graduate 22.6% GED/Afternative Credential 4.5% Some College, No Degree 22.9% Associate Degree 11.9% Bachelor's Degree 21.5% GraduabpjPr fessimal Degree 14.3% 2023 Population 15+ by Marital Status Total 69,523 Never Married 34.2% Marred 53.5% Widowed 5.2% Divorced 11.2% 2023 Civilian Population 16+ in Labor Force Civilian Papulation 16+ 44,014 Papulation 16+ Employed 96,13% Papulation 16+ Unemployment rate 3.2% Population 15-24 Employed 19.2% Population 16-24 Unemployment rate 5.7% Population 25-54 Employed 53.6% Population 25-54 Unemployment rate 2.5% Population 55-64 Employed 13.1% Population 55-64 Unemployment rate 2.5% Population 65+ Employed 4.1% Population 65+ Unemployrrrent rate 4.4% Source: Esd forecasts for 2023 and 2028. U.S. Census Bureau 2006 and 2010 decennial Census data converted by into 2020g�raphy, December 19, 2023 (]2923 Esri Page 5 of a 24-985 Kirkham Appraisals Inc. Page 26 elesn- Market F Bannock County, Id 46 Prepared by Esn Bannock County, ID (16045} Geography: County Bannock Count... 2023 Employed Population 16+ by Indlustryr Taal 38,739 Agriculturm/Min ing 1.5% Construction 6.9076 Manufactwing 7.9% Wholesale Trade I. B% Retail Trade 10.2% Transportation/Utilities 6.5% Information 1.2% Finance/Insurance/Real Estate 8.5% Servioes 49.5% Public Administration 6.0% 2023 Employed Population 16+ by Ooeupartiun Total 313,T39 White Collar 59.3% Management{Businress/Finan€ial 13.7% Professional 25.6% Sales 8.4% Administrative Support 11.6% Services 18.8% Blue Collar 21.9% Farming/Forestry/Fishing 0.3% Cartshir€tion/Extraction 5.0% InstallationJMaintenancel Repair 3.1% Production 5.4% Transportation{Material Moving 3.1% 2020 Households by Type Total 32,43E Married Couple Households 49.2% With Own Children <18 2D.7% Without Dvm Children <18 28.4% Cohabitating Couple Households 7.4% With Own Children <18 2.6% Without Dwn Children <IS 4.8% Male Householder; No Spausef aitner 19.0% Living None 12.8% 65 Years and over 3.9% With Own Children <18 1.9% Without Dvm Children <18, With Relatives 2.5°.'0 No Relatives Prat 1.8% Female Hauseholde . No Spouse/Partner 24.4% Living Alone 14.1% 65 Years and over 6.4% With Own Children <18 4.5% Without Dvm Children <18, With Relatives 4.7% No Relatives Pr-sent 1.2% 2020 Households by Size Total 32,438 1 Person Household 26.9% 2 Person Household 33.6% 3 Person Household 14.5% 4 Person Household 11.7% 5 Person Household 7.0% 6 Person Household 3,8076 7 4 Person Household 2.5% Source: Esri forecasts for 2023 and 2029. U.S. Census Bureau 2006 and 2010 decennial Census data corrvertedSource: for 2023 and 2029. U.S. Census Bureau 2006 and 2010 de Census by into 2020��raphy.into 2020g�raphy. December 19, 2023 /]2023 Esri Page 6 of a 24-985 Kirkham Appraisals Inc. Page 27 �� #Warket Prc Bannock County, Id 46 Bannock County, ID (15045) Geography: County Prepared by Esri Bannock flaunt.. 2020 Households by Tenure and Mortgage Status Total 32,438 Ovrner Occupied 67.6% Owned with a Martgage/Laan 46.2% Ovmed Free and Clear 21.4% Renter Occupied 32.4% 2023 Affordability, Mortgage and Wealth Housing Affordability Index 90 Percent of Income for Moitgag a 27.2% Wealth Index 58 2024 Housing Units By Urban/ Rural Status Total 34,903 Urban Housing Units 83.13% Rural Housing Units 16.2% 2024 population By Urban/ Rural Status Total 87,019 Urban Population 93.0% Rural Population 17.0% Data Note: Households with children include any households with people under age 18, related or not. Multigenerational households are families with 3 or more parent-child relationships. Unmarried partner households are usually classified as nonfamily households unless there is another member of the household related to the householder. Multigenerational and unmarried partner households are reported only to the tract level. Esri estimated block group dater whidr is used to estimate polygons or non-standard geography. Source: Esri fwmasts for 2023 and 2029. U.S. Census Bureau 2006 and 2010 decennial Census data carrverted by Esri into 2020 aeog raphy. December 19, 2023 (]2023 Esri Page 7 of 8 24-985 Kirkham Appraisals Inc. Page 28 Oesn- Market F Bannock County, Id 46 Prepared by Esri Bannock County, ID (15045} Geography: County Bannock Cauny... Top 3 Tap-estry Segments 1. Set to Impress (11D) Z. Middleburg (4C) 3. C+ld and Newcomers (8F) 2023 Consurner Spending Apparel & Services: Total $ $58,317,392 Average Spent $1,744.31 Spending Potential Index 79 Education: Total$ $45,323,1913 Average Spent $1,355.64 Spending Potential Index 76 EntertainmeriVRerneation: Total $ $99,636,547 Average Spent $2,9130.19 Spending Potential Index 79 Food at Home: Total $ $179,059,626 Average Spent $5,355.713 Spending Potential Index 79 Food Away from Home; Total $ $98,656,966 Average Spent $2,950.89 Spending Potential Index 79 Health Care: Total $ $196,554,492 Average Spent $5,1379.44 Spending Potential Index So HH Furnishings& Equipment: Total $ $77,634,443 Average Spent $2,328.46 Spending Potential Index 79 Pemonal Care Products & 3eivices: Total $ $25,4132,532 Average Spent $762.24 Spending Potential Index 84 Shelter: Total S $545,631,197 Average Spent $19,347.09 Spending Potential :Index 713 Support PaymentsJCash Contributions/Gifts in iGnd: Total $ $82,1370,2113 Average Spent $2x478.70 Spending Potential Index 79 Travel: Total s $58,569,717 Average Spent $1,752.45 Spending Potential Index 78 Vehicle Maintenance& Repairs: Total $ $35,676,492 Average Spent $1,067.49 Spending Potential Index 81 Data "e: Consumer spending shows the a mount spent on a variety of goads and services by households that reside in the area. Expenditures are shown by broad budget categories that are not mutually endusiue. Consumer spending does not equal business revenue. Total and Average Amount Spent Per Household represent annual figures. The Spending Potential Index represents the amourrt spent in the area relative to a national average of 140, Source: Consumer Spending data are derived from the 2019 and 2028 Consumer Expenditure Surveys, Bureau of Labor Statistics. Esri. Source: Esri forecasts for 2423 and 2428. U.S. Census Bureau 2046 and 2418 decennial Census data converted by Esri into 2424 aeon raohx t2023 Esri December 19, 2023 Page 8 of 8 24-985 Kirkham Appraisals Inc. Page 29 Environmental Issues A visual inspection of the property did not reveal any apparent environmental issues or concerns. While the appraiser has inspected the subject property, he is not qualified to detect hazardous substances whether by visual inspection or otherwise, nor qualified to determine the effect, if any, of known or unknown substances present. The final value estimate is based on the subject being free of hazardous waste contamination. Parties desiring more precise and reliable information may wish to engage a professional environmental consultant to conduct an environmental assessment. Should such assessment indicate an adverse condition is present that has not been addressed by this appraisal; the conclusion of this appraisal may need revision. General Area Data and Trends The cities of Pocatello and Chubbuck are located close together in southeast Idaho in a valley surrounded by mountains on three sides. The cities are at an altitude of 4,450 feet in the western foothills of the Rocky Mountains near the Oregon Trail. One main railway, Interstate 86, Interstate 15, and the Portneuf River intersected the city. The southeastern area of Idaho was inhabited by the Shoshone and Bannock Indian tribes for hundreds of years prior to the Lewis and Clark expedition in 1805. It was the Lewis and Clark reports of that expedition that first attracted fur trappers and traders to southeastern Idaho. One of the first permanent settlements was established by Nathaniel Wyeth of Massachusetts a few miles northeast of Pocatello at Fort Hall in 1834. After over -trapping and changes in fashion ended the fur trade, Wyeth's settlement became a stopping point for immigrants traveling the Oregon Trail. It was not until after the discovery of gold in Idaho in 1860 that immigrants began settling in Idaho in large numbers. The gold rush had brought a demand for goods and services that supported the establishment of towns. The Portneuf Valley and Pocatello area became the corridor that was initially used by freight shipping and stage lines. After the gold rush ended, the settlers who remained in the Pocatello area turned to agriculture as a means of support and the nearby Snake River provided ample irrigation water for crops. The region eventually became a major supplier of potatoes and grain products. The city was named for Chief Pocatello of the Shoshone tribe who gave the railroad a right-of-way through the original Fort Hall Indian Reservation for a line that connected Salt Lake City, Utah to Butte, Montana. Initially, the Utah and Northern Railroad stopped for water in the Pocatello Creek area. Then, with the arrival of the Oregon Short Line in 1882, the area became a junction and transfer point between the two railroads. In 1887, the Oregon Short Line moved its offices to the Pocatello Junction and the two railroads merged, creating a large repair and maintenance facility. In 1888, an Executive Order ceded 1,840 acres of Indian land to establish the city of Pocatello. The Pocatello/Chubbuck area has a four -season climate that was sunny and dry with less than fifteen inches of precipitation annually. Summers were dry and warm with cool nights and an average temperature in July of 72 degrees. The winter temperatures averaged thirty-five degrees with several months of snow. According to The US Census bureau, as of April 2010, Pocatello's population was 54,255 persons: a 5.29% increase from the 2000 census. 13,922 reside in the neighboring town of Chubbuck, Idaho. Chubbuck experienced 43.35% growth between 2000 and 2010. The total population for Bannock County was 87,018 persons living in 1,112 square miles in 2020. The growth for Bannock County between 2010 and 2020 was, overall, 5.04%. The county is population is reported at 89,078 persons as of 2023. The cost of living in Bannock County was well below the national average for groceries, housing, utilities, and transportation. The median priced home in Bannock County reported at $225,283 in 2022; apartment rents were from $400 to $2,200 per month. The chief sources of income in Pocatello/Chubbuck and the nearby trade area was manufacturing, mining, transportation, agriculture, medical products, processing of agricultural products, high-tech and nuclear research, recreation and tourism. 24-985 Kirkham Appraisals Inc. Page 30 Major Ein p. Idaho Central Credit Union PorneufhdedicalCenter As pire Hum an Services LLC ONSemiconducor,Inc. Contiergys CusiamerNbnagemer Union Pacific Railroad Allstate Insurance Ca %bmityContractars Am Kitchen Inc. wal-Nbrt Regional industry also included the Idaho National Laboratory (INL) which was located 60 miles northwest of Pocatello/Chubbuck. Built in 1949, the site had more than 50 nuclear reactors and employed approximately 12,000 individuals. The years between 1970 and 1990 brought recessionary times to Pocatello's older downtown business district. However, in the decade of the 1990's, the older downtown area underwent restoration and revitalization efforts, with the result that numerous small or specialty retail stores and a number of new restaurants relocated in the central downtown area. It was during those recessionary times that Yellowstone Avenue gradually underwent commercial development. Over the ensuing years, the primary areas of expansion and new development on Yellowstone Avenue occurred in the north Pocatello and Chubbuck portions of this major arterial highway. That growth continued, and Yellowstone Avenue became the prime retail commercial center of the city with many newly developing areas that contained retail and service facilities, fast food facilities, restaurants, and the major automobile sales/service establishments. The Pine Ridge Mall, Wal-Mart, and Fred Meyer superstores, as well as, the commercial Pocatello Square subdivision, provided the central focus for the continuing development of new business and expansion on Yellowstone Avenue. Pocatello/Chubbuck offered excellent health care services and facilities. The Portneuf Medical Center was formed when two area hospitals consolidated in 2002. The facility was designated as a Level Three Trauma Center and housed a Life Flight helicopter. Portneuf Medical Center had recently added open heart surgery to its services. Idaho State University (ISU) was among the fastest growing of the four academic institutions of higher education in the State of Idaho. Approximately 13,569 students were enrolled in the 124 Baccalaureate, 50 Masters and nine Doctoral programs. ISU had an outstanding School of Applied Technology that was the largest post -secondary technical institute in the state of Idaho, providing technical and career -oriented educational opportunities. The city of Pocatello has a newer library, 32 parks, two public golf courses, a swimming complex and small zoo, and a Museum of Natural History located on the ISU campus. The city of Chubbuck has a library and numerous parks. The neighborhood is a mix of residential, commercial, and light industrial properties. The market suffered declining values from 2008 to 2011 and stabilized in 2012. The market has increased since. The market has been expanding for several years now. A sharp contraction in the economy occurred in March and April of 2020 with the COVD Pandemic. An expansion occurred shortly after. Drastic inflation and interest rate hikes to fight the inflation could send the economy into a recession within the next 12 months, and has already caused a slow -down to real estate activity. It is possible interest rates may begin to decline in the next several months if inflation continues to ease as it has over the past several months. These interest rate declines could spur some real estate activity. 24-985 Kirkham Appraisals Inc. Page 31 �A Bannock County Economic Overview Civilian Labor Force (Dec 2023) 4209 Unemployment Bate (Dec 2023) 3.296 Population (2022) 89.5.7 Median Household Income (2021) $88,472 Per Capital Personal Income (202 2) $47v467 Poverty Rate (2021) 12.7% Last Updated: January 2Q24 R pmW partner of the Idaho DeparI:ment of Labor ' Iabor.ida o. ov DMAM- amen atlnjo6€enter naM'oIN Tho Idaho- Drparlmwnt of Labef a an equal opparluallx anrplo-yu and wr„cr pro ;drr. Ramnahla rrcammodm uai we ay&&Alr .w squeal Dial Tit icer HOko flalrq Sarww. 24-985 Kirkham Appraisals Inc. Page 32 Market Delineation: According to Market Analysis for Real Estate Second Edition page 534, "A market area is defined by the specific use or uses of the property and the users it is likely to attract. The tenants and clientele who constitute the demand for the mix of uses in the subject tract will not all be drawn from areas with identical boundaries. Available data often have to be adjusted to correspond to the market areas defined by the location of property users." The market area is the physical area where similar properties effectively compete. It can also be envisioned as the area that contains all the primary competition, and in certain cases, some secondary competition. Market areas may contain one or more neighborhoods, districts, cities, counties, or states. Market Area Boundaries North Bannock County East Bannock County South Bannock County West Bannock County Demographics Physical Area Bannock County Recent Population Level About stable near 89,517 Household Income About stable near $56,472 Local Unemployment Physical Area Bannock County Recent Pattern Mildly declining Approx. Current Percent 3.2% (Bureau of Labor Statistics) Financing (for real estate like subject) General Loan Availability Ample availability; requirements mildly difficult Interest Rate Range 6.00% to 10.00% Typical Loan -to -Value Ratio 70% to 75% Typical Amortization Years 15 to 20 years Loan Maturity / Balloon 5 years 24-985 Kirkham Appraisals Inc. Page 33 Nearby Land Uses Single -Unit Residential Proximity Features Expected Change in Economic Base The area is growing, with 1% growth in population and households overthe past several years expected to continue. Protection from Adverse Conditions Average Demand for Real Estate Like Subject Moderate Building Age Range 0 to 80 Years Oversupply of Property Like Subject Eastern Idaho has a large amount of land on the market. General Appearance of Property Average Location Average, Suburban Land Use Change Unlikely Police and Fire Protection Average Expressway Access Average Employment Centers Under 1 mile Property Compatibility Average Overall Appeal to Market lAverage Nearby Land Uses Single -Unit Residential 40% Multiple -Unit Residential ! 10% Retail / Commercial ! 15% Office ! 10% Industrial 15% Agriculture ! 5% Vacant Land 5% Other 00% Total 100% Other Description: The subject property just north of Capell Park in Chubbuck. The general developed with medical uses, office uses, residential uses, and industrial uses over the past se subject property is located approximately 425 feet east of Mesquite Drive. 24-985 Kirkham Appraisals Inc. Page 34 Pocatello/Chubbuck Residential Market Analysis Physical Area Foreclosures & Short Sales New Construction Pocatello/Chubbuck Shrinking portion of all sales Increasing An Abstract of PocatellofChubbuck MLS Reported Single Family Detached Sales YEAR total sales Avg reported Value Annual %-Chng Med %of QOM Asking Total Ann Sales S Median Price $ 2013 809 151,338 #REF! 85 97.29 122,431,489 135,000 2014 841 156,739 1.07% 93 97.87 131,817,906 136,450 2015 960 157,490 1.65% 78 97.82 151,190,603 138,700 2018 1 1.002 188,127 1.8096 1 70 98.51 1 166,459,388 141,200 2017 1.030 168,578 4.11% 61 98.74 173,636,209 147,000 2018 989 196,175 15.58% 52 99.21 194,018,001 169,900 2019 981 214,366 10.06% 50 99.42 210,293,114 187,000 2020 988 246,937 18.59% 50 99.53 243,974,548 221,771 2021 1.086 1312,8411 26.26% 42 1100.00 339,746,105 280,000 2022 1 922 1374,6421 17.8696 1 50 1 99.28 1 345,420,366 330,000 2023 1 747 1378,6331 3.0396 1 58 1 98.77 1 282,839,568 340,000 Median Horne Prices g 200,GQ10 154,OW 100,000 2016 1 2011 1 2018 1 2019 1 2020 1 2021 1 2022 1 2023 Seriesi 1141,20 1147,00 1169,90 1187,00 1221,77 1280,100 1330,00 340,00 In real estate, average sale price is often greater than the median. If the ratio of the average sale price to the median price (shown in last column) significantly changes from prior periods, the distribution of sales may be the real cause of the price change, and not true price appreciation or depreciation. Further analysis is necessary. Expected Near Future Price Could decrease with increase in interest rates Change Overall Supply & Demand Near equilibrium of Housing 24-985 Kirkham Appraisals Inc. Page 35 Real Estate Like Subject (Commercial and High Density Residential Land) Sales Market New Construction Inventory of Competing Property for Sale Expected Near Future Price Change Marketing Times Overall Market Conditions "MI Some Could Decline with Rising Interest Rates, and a possible recession. Stable Fairly Stable with a possible recession forecast for 2024 The residential market had seen increases in median and average home values since 2011. 2021 and 2022 have brought large increases in value to residential properties. Interviews with agents in the market area indicate there was a shortage of supply for residential homes, which fueled the current residential value growth. New construction starts have increased since 2014 and are expected to continue their increases over the next several years. The federal funds rate for May of 2017 was 1.0%, and went to 0% during the pandemic, and has since increased to 5.25-5.50%. The increase in the federal funds rate has had a significant effect on mortgage rates and real estate activity has slowed. Pocatello's commercial growth has consisted of major retail chains including Costco, Dick's Sporting Goods, and Winco, along with several new restaurants that have been constructed mostly along Yellowstone and East Center Street over the past several years. The main growth in Pocatello and Chubbuck over the past several years has been in high density residential developments and smaller commercial developments in Chubbuck, North Pocatello, and the University area. 24-985 Kirkham Appraisals Inc. Page 36 Regional Multi -Family Market Data MARKET RENTS I MULTIFAMILY MAR KET2023 ow 1 BEDROOM 2 BEDROOM 3 BEDROOM AVERAGE AVERAGE AVERAGE SIZE [SF] 544 970 1,154 M& IF Apartment rents stabilized throughout the Eastern Idaho RASA with the average rates for 1 bedroom units all under 57,150 per month.ln the Idaho Falls and Pocatello regions, average rental rates for 2 bedroom units decreased from this time in 2022. Rents remain highest in the Idaho Falls and Ammon region, but Rexburg follows closely with rent prices increasing by an average of $16.00 in the last year. Multifamily rates in other Eastern Idaho metros such as Pocatello and Chubbuck remain more affordable but are expected to rise considering new supply remains limited in these areas. Single family home sales in Eastern Idaho have declined year - over -year since 2020 with no signs of change to that trend in 2023. Based on data from the Snake River MLS, single family home sales are down almost 13 percent from this time in 2022. Additionally, the current median home sale price Is $390,000, down 575,000 when compared to 2022. High interest rates and continued inflation have put homes out of reach for many would-be buyers, while also discouraging people with mortgage rates at lower levels from selling. 1 BEDROOM 2 BEDROOM 3 BEDROOM, AVG LOW HIGH AVG LOW HIGH AVG LOW HIGH IDAHO FALLS&AMMOH ` 5700 $1,395 S1Ao2 5675 31, W $1,120 $2,110 AVG LOW HIGH AVG LOW HIGH AVG LOW HIGH POCATELLO&CHVBBIICK $912 $717 $1,395 $1,147 $875 51,m 51,333 5942 $1,875 AVG LOW HIGH AVG LOW HIGH AVG LOW HIGH REX6uRG $1,023 W 51,220 $1,236 $900 51,700 51,5 According to TOK Commercial brokers, apartment rents have stabilized throughout most of Eastern Idaho. Single family home sales have slowed over the past several years with the current monetary policy creating affordability issues for single-family housing. This unaffordability could increase the amount of renters in the area, which in turn would increase demand for new multi -family units. 24-985 Kirkham Appraisals Inc. Page 37 MARKET ACTIVITY I M U LTI FAM I LY MARKET 2023 For multifamily product over 4 units, transactions increased by over 70 percent compared to 2021 Val uesalso remain high with a medlen price per door of $141,250, up 5.6 percent from 2022s values.These increases are likely due to stable population growth, cnupied with the rising number of renters, further solidifying the appeal of investing in multifamily real estate in Ea stem Idaho. In the Idaho Falls area, the occupancy rate is currently 96.4 percent for stabilized apartment complexes over 50 units, per ALN Apartment data. This is over 300 basis polnts higher than the current national average of 93.1 percent. National rap rates are 5.28 percent, the highest they have been since 2017.This rise in multifamily cap rates can likely be attributed to higher interest rates. Additl anally, over the next six months, most investors expect overa I I cap rates to contl nue to rise. so 4S as 35 30 25 2' 10 5 a TRANSACTIONS PER YEAR I PRICE PER DOOR slea.onn.00 slna.000.00 s Lao.000.00 sso'wo.o0 W,WD.o11 W,WD.o11 W,WD.o11 gam 2015 21119 2020 2021 2,022 21123 Median Price Per Door -No. of Sales In Eastern Idaho, the multifamily real estate market has experienced significant growth in transactions, increasing by over 70 percent compared to 2022. Values have remained high, with a median price per unit rising by 5.6 percent to $141,250. This growth is attributed to stable population increases and a rising number of renters, making multifamily properties appealing investments in the region. In the Idaho Falls area specifically, occupancy rates for large apartment complexes are at 96.4 percent, significantly higher than the national average of 93.1 percent. National cap rates for multifamily properties have reached 5.28 percent, the highest since 2017, likely due to rising interest rates. Most investors anticipate further increases in cap rates over the next six months. 24-985 Kirkham Appraisals Inc. Page 38 UNDER CONSTRUCTION MULTIFAMILY MARKET 2023 I UNDER CONSTRUCTION r r" / I IPLANNED IDAHO FALLS CEM The data from TOK indicates approximately 468 units in the Pocatello/Chubbuck area to come online in the next several years. This increase in supply should help off -set rising demand. Which in turn could help keep rents stable. 24-985 Kirkham Appraisals Inc. Page 39 UNDER CONSTRUCTION1 MULTIFAMILY MARKET 2023 Accord Ing to the US Census Bureau, the majority of Eastern Idaho cities saw population grow by over two percent from 2020. The strongest growth happened in the cities of Rigby and Ammon, with an 8.2 percent Increase and a 7.3 increase, respectively. This growth continues to drive multifamily development in Eastern Idaho, as demonstrated by a 62 percent increase In multifamily unit penults from the end of 2022. Additionally, there are 75,000 students registered each semester between four major u niversitles and col leges within the region, per REDI.ThIs large student population I n Eastern Idaho al so plays a major role I n multifamily development. Most development continues to occur In Idaho Falls, with over 900 untIts planned or under construction in the area. However, other areas such as Chubhuck/Pocatello and Rexburg are starting to see new multifamily construction as well, with 540 units currently under construction or planned. MULTIFAMILY & SINGLE FAMILY TRENDS 2,500 two 1,500 2,000 500 0 20.2 2019 210210 21321 7022 21323 ■ Single Fahy Permm m Multlia nilly untts POPULATION PERCENT CHANGE BY CITY Ida he FN6 P—e GuEEuek Rex S ONddma Rigby 0.0% IA% 2.0% 3.Q% 0.0% 5.0% 6A% 7.0% 9.QM 9A Population growth in Eastern Idaho, particularly in cities like Rigby and Ammon, has driven a surge in multifamily development, with permits for such units increasing by 62 percent since 2022. The region also boasts a significant student population, with around 75,000 students enrolled each semester across four major universities and colleges. Most development activity is concentrated in Idaho Falls, where over 900 units are planned or under construction, though areas like Chubbuck/Pocatello and Rexburg are also witnessing new multifamily construction, with 540 units currently in progress or planned. Conclusion The market area has grown over the past couple of years at a slightly slower rate than Boise and Idaho Falls. I would expect extended marketing times and a possible decline in land values in the area with economists indicating a recession in 2024-2025 is possible, but the area is predicted to continue its steady growth of approximately 1-2% yearly, which will continue its demand for residential developments. 24-985 Kirkham Appraisals Inc. Page 40 MULTIFAMILY UNITS & PERMIT VALUES 1'00 Sim S9D Ip00 SeD SID SM — Sw cno SSD Sa13 ano $313 SM 200 1 Ssa _ $0 x1318 11319 21320 2021 .2 HV3 N—ber of Unils —N -it Value 6 I AlMnsf Accord Ing to the US Census Bureau, the majority of Eastern Idaho cities saw population grow by over two percent from 2020. The strongest growth happened in the cities of Rigby and Ammon, with an 8.2 percent Increase and a 7.3 increase, respectively. This growth continues to drive multifamily development in Eastern Idaho, as demonstrated by a 62 percent increase In multifamily unit penults from the end of 2022. Additionally, there are 75,000 students registered each semester between four major u niversitles and col leges within the region, per REDI.ThIs large student population I n Eastern Idaho al so plays a major role I n multifamily development. Most development continues to occur In Idaho Falls, with over 900 untIts planned or under construction in the area. However, other areas such as Chubhuck/Pocatello and Rexburg are starting to see new multifamily construction as well, with 540 units currently under construction or planned. MULTIFAMILY & SINGLE FAMILY TRENDS 2,500 two 1,500 2,000 500 0 20.2 2019 210210 21321 7022 21323 ■ Single Fahy Permm m Multlia nilly untts POPULATION PERCENT CHANGE BY CITY Ida he FN6 P—e GuEEuek Rex S ONddma Rigby 0.0% IA% 2.0% 3.Q% 0.0% 5.0% 6A% 7.0% 9.QM 9A Population growth in Eastern Idaho, particularly in cities like Rigby and Ammon, has driven a surge in multifamily development, with permits for such units increasing by 62 percent since 2022. The region also boasts a significant student population, with around 75,000 students enrolled each semester across four major universities and colleges. Most development activity is concentrated in Idaho Falls, where over 900 units are planned or under construction, though areas like Chubbuck/Pocatello and Rexburg are also witnessing new multifamily construction, with 540 units currently in progress or planned. Conclusion The market area has grown over the past couple of years at a slightly slower rate than Boise and Idaho Falls. I would expect extended marketing times and a possible decline in land values in the area with economists indicating a recession in 2024-2025 is possible, but the area is predicted to continue its steady growth of approximately 1-2% yearly, which will continue its demand for residential developments. 24-985 Kirkham Appraisals Inc. Page 40 Subject Property e 9 . Identification of the Property The real estate appraised is part of a larger parcel that is access from Capell Park. The site is just north of the existing tennis courts. Since the subject property consists of just vacant land, it does not have a common address. Legal Description A professional surveyor and / or legal counsel should verify the following legal description before relying upon, or using it as part of any conveyance, or any other document. This legal description was obtained from public records and is assumed accurate. To Be Determined 24-985 Kirkham Appraisals Inc. Page 41 Aerial View Aerial Map I` WAS r h{arn kor i VP i�t 0�, • • . l` -Roanoke -lir— — s� Pgce6eqlq r 3�3:3AE � �+ .jai'``+ y t..X �C IErallorvap Dr— few Jae 4y I awl'_ T. 06 wnz • y ' �C�2624 Avr Dala, Inc. r n;f� Boundary Center: 42.0312015, -112.481344 DR r _3uR cBuR NA!PRAIS!�! 3.GS-34Er A Bannock County W r ' Idaho LX SWrP .QIIL....-F CALLA - 61 M}3 1414!21324 24-985 Kirkham Appraisals Inc. Page 42 Soils Map Soils Map Shcs Bala prDVIWd UY USt7Aand NRCS. 35 ■ State- Idaho Cade County: Bannock Acres Location: 3 -6S -34E NarFly Township: Pocatello Septic Acres: 2.05 Sod Date: 10W2024 kAlfalra Barley waalust� co Pasture tiapp•7rdd Rr x ry urt li' � F. e�.e..�.. o..�.. �.r�. CAWDau kc MA x..0 47..M1I : _u Clam Area Syn16d: IE711, Sal Area Versiwl: 18 Cade Sol Acres Percent NarFly Restrictae Septic Foundation Sod Nrh kAlfalra Barley Irish Pasture Sugar❑escr4=n at field Clam Layer Limis Limits drainage Irr Class hay Irrigated potatoes Iltaied heels Legend Class kCated Bu Irrigated AUM In gatec Tans CW Tans 7 &ahern sit 205 MUM > 0.M sanerrhat notlinhed Well Vic Ille 8 100 270 12 2 barn, 0to2 irnitec chained per— t 5I6Pe5 Weighted Average $.GG 3.1)01 51 1001 2701 121 2 'n: The aggrega ion rnetliod is'VYeighted Average using al I components' Whi date pr Wedby USDA wd NRI --B. 24-985 Kirkham Appraisals Inc. Page 43 Topography Map Topography Contours 4 t Or 71 IF c` QccaLellq _ T (U, Gallawayar W. r. r i 24-985 Kirkham Appraisals Inc. Page 44 Source: USGS tUmeteFdem CF 13BR 2738 Mk!PRAI Interval;ft): 1.0Min: 4,406.9 x 3 -6S -34E SAL CD Max: 4,909.6 w + r. Bannock County M:p� ;-� d.e xe Range: 2.2 t Idaho UsuretAverage: 4,408.1 1414f2624 o.�naou rc mss w.Rt.:�'w�i :. Standard Deviation: U_$2ft Boundary Center. 42.931266, -'1241313D4 24-985 Kirkham Appraisals Inc. Page 44 7r� Photographs of Subject (photo page 3) Subject Subject 24-985 Kirkham Appraisals Inc. Page 47 Sale History The subject property is a portion of a larger parcel that was sold on September 1, 2021. The parcel contained approximately 39.48+/- acres and sold for $4,500,000. The grantor was listed as Keith Tanabe and Tomi Ivie and the grantees were listed as Gary and Jennie Ratliff. The subject has since been platted and split several times as it has been developed. Subject's Current Ownership Owner Information Source Gary Ratliff Assessor's Records Flood Hazard According to the appropriate Federal Emergency Management Agency (FEMA) flood map, which is identified below, the subject property is not located in a zone "A" special flood hazard. Flood Map Number 16005CO237D Flood Map Date 07/07/09 Flood Zone X Flood Maps published by FEMA are not precise. If anyone desires a precise determination of the subject's flood hazard classification, a professional engineer, licensed surveyor, or local governmental authority should make an exact determination. Real Estate Taxes Throughout Bannock County, the Total Assessed Value is supposed to represent 100% of market value for all property types. County Bannock Parcel ID # Part of RPRCCPC045401 Tax Year 2023 Total Assessed Value $462,172 (10.61+/- acres) Total Tax Dollars $1,302.06 Real estate taxes are a primary mechanism used by local government to gather the monies needed to fund operations. Too little funds can limit governmental services. Excessive tax burden can hinder real estate values. The subject's tax burden is within normal ranges and should not have a negative affect on the marketability of the subject property. Zoning The subject property is zoned "R-4" Dense Residential District by the City of Chubbuck. This land is well suited to serve a large number of legally permitted uses. Zoning does not unduly limit value or marketability. 24-985 Kirkham Appraisals Inc. Page 48 Zoning 24-985 Kirkham Appraisals Inc. Page 49 Environmental Risks Disclosure During the course of this appraisal, the appraiser(s) did not detect or attempt to discover any environmental hazard on, under, above, or within the subject real estate. No overt evidence of any environmental hazard is apparent to the untrained eye. It should be known the appraiser(s) did not view the subject property with the intent of detecting any environmental hazard. It is beyond the expertise of the appraiser(s) to detect or determine the chemical nature of any substance or gas. No effort was made to dismantle or probe any part of the property to discover enclosed, encased, or concealed hazards. No effort was exerted to ascertain the presence of any environmental hazard including but not limited to the following. Asbestos Underground storage tanks Lead-based paint Radon Chemical spills Urea formaldehyde insulation Soil contamination or deficiencies Toxic mold PCB Fire resistant treated plywood (FRTP) Flood hazards are detailed elsewhere in this report. Except as enumerated herein, the appraiser(s) were not given the results of any environmental testing on or near the property being appraised. Neither observation of the subject property, or research conducted as part of a typical real estate appraisal suggest the presence of any hazardous substance or detrimental environmental condition affecting the subject. Nearby sites were not investigated to determine whether they are contaminated. Public information and other Internet sources were not researched to determine the presence of hazardous substances or detrimental environmental conditions in the subject's vicinity. Federal, State, and local laws concerning any hazardous substance or gas are sometimes contradictory. Therefore, any needed clean up should comply with the most stringent laws. The appraiser(s) are not informed or trained in environmental legalities. It is assumed no hazardous substance or gas adversely affects the subject real estate. If the subject is adversely influenced by a hazardous condition, then the subject's market value would be impaired. Recommendation The presence of any hazardous condition usually diminishes market value. The value opinion formed in this report assumes there is no environmental hazard affecting the subject real estate. No responsibility is assumed by the appraiser(s) or Kirkham Appraisals Inc. for any hazard, or for any expertise required to discover any environmentally hazardous condition. Our client is urged to retain an expert in this field, if desired. 24-985 Kirkham Appraisals Inc. Page 50 Subject Property Subject Site Size 2.05+/- Acres or 89,568+/- Square Feet Easements Typical utility type Encroachments None known; none assumed Shape Generally Rectangular Topography Mostly Level Curbs & Gutters None Water & Sanitation Public water, public sewer at/near site Rear Alley None Access Typical Street Paving Asphalt Sidewalks None Natural Gas Public Adjacent Road(s) 2 -lane, 2 -way Nearby Land Uses Medical, Office, Residential, Industrial Electric Provided by public companies at prevailing rates Major Flaws None Overall Features The land has typical features as compared to similar alternatives. Its overall locational attributes are average relative to competitive parcels. 24-985 Kirkham Appraisals Inc. Page 51 0 Analyses & Conclusions e e e Value Introduction For real estate that is predominantly unimproved vacant land, there are six valuation methods. The most frequently used sales comparison approach is employed in this report. 24-985 Kirkham Appraisals Inc. Page 52 Real Estate Cycles Real estate generally has four market cycles. "Understanding where the market is and forecasting the extent of duration of the cycle are important in projecting the pattern of future income."' These cycles are depicted below. The red arrow depicts the appraiser(s) opinion of the subject's position in the market cycle. Segment Name Characteristics Growing demand, rental rates climbing above replacement cost, decreasing AB Expansion vacancy, concessions not prevalent, high profit potential stimulating much new construction Stable to weakening demand, stable to weakening vacancy, small BC Contraction concessions beginning to occur, rents stable to mildly weakening, profit potential shrinking so new construction slowing CD Recession Stagnant to declining demand, vacancy growing, rental rates falling, significant concessions prevalent, new construction virtually halted DA Recovery Demand strengthening, vacancy shrinking, rental rates starting to climb, concessions shrinking, new construction beginning to occur Time until the next major point 1 1 to 2 years ' Advanced Concepts & Case Studies, pg 253, Appraisal Institute, copyright 2010 24-985 Kirkham Appraisals Inc. Page 53 Highest and Best Use Introduction A highest and best use identifies the most reasonably probable and appropriately supported use of the property appraised. Since market conditions change, a property's highest and best use may change as well. This analysis is an essential step in the determination of market value. Market dynamics determines a property's use and an appraisal values that use. Practically speaking, a highest and best use analysis forms a framework for the proper selection of comparables. The "Dictionary of Real Estate Appraisal", 6th edition, copyright 2015 by the Appraisal Institute defines this term on page 93 as: 1. The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. 2. The use of an asset that maximizes its potential and that is possible, legally permissible, and financially feasible. The highest and best use may be for continuation of an asset's existing use or for some alternative use. This is determined by the use that a market participant would have in mind for the asset when formulating the price that it would be willing to bid. (IVS) 3. [The] highest and mostprofitable use for which the property is adaptable and needed or likely to be needed in the reasonably near future. (Uniform Appraisal Standards for Federal Land Acquisitions). " There are two types of highest and best use. The first is highest and best use of land as though vacant. If a building already exists, the second variety is highest and best use as though now improved. The later considers whether the existing building should be retained as is, demolished, remodeled, renovated, repaired, enlarged, or converted to an alternate use. Both types require separate analyses. Current usage may or may not be different from the near future highest and best use. The concept of Highest and Best Use is based upon four major criteria, which are summarized below: 1. Legally The use must be legal or probable. That is, the use must conform to existing zoning Permissible restrictions, or there must be a reasonable likelihood a rezoning or variance may be granted. Private agreements like deed restrictions and leases must also be considered. 2. Physically Physical attributes of the land that must be considered include size, access, shape, orientation, Possible soil conditions, potential hazards, topography, and utilities. Physical attributes of the building that must be analyzed include design, size, efficiency, mechanical systems, floorplan, construction materials, quality, and physical condition. 3. Financially Land may be developed with different uses. Only those uses, which produce a positive net Feasible return over time with acceptable risk, are deemed financially viable. This use must not depress surrounding property values. 4. Maximum Of all uses that survive the first three tests, there is only one use, which produces the greatest Productivity return with the least risk. This single use represents the property's Highest and Best Use. Supply and demand are constantly fluctuating, so it is common for a property's highest and best use to change. 24-985 Kirkham Appraisals Inc. Page 54 Highest and Best Use Introduction Demand analyses can be categorized into two different levels of detail - Inferred and Fundamental. A fundamental analysis forecasts future demand from projections of broad demographic and economic data, specifically population, income, and employment. Existing supply is inventoried. Then, the relationship of supply and demand is weighed to determine residual demand. If residual demand is positive, more of that property type is needed. Of course, the opposite is also true. An inferred analysis is based on local trends and patterns from which inferences are made. This type analysis presumes that recent past trends will continue for the near future. Sale prices, number of competitive listings, marketing intervals, and / or price changes for other similar properties infer there is adequate demand for the subject at a price level congruous with the available data. An inferred analysis emphasizes historical data while a fundamental analysis is based on expected future occurrences. This appraisal's highest and best use was based, in part, on an inferred demand analysis. Following below are detailed considerations used to form a highest and best use determination for the property appraised. Buyer Types The most likely buyer type is crucial to highest and best use. Different buyer types have different motivations and different perceptions of risk. The buyer type must be identified to better understand applicable approaches and the selection of cap rates and yield rates. Different buyer types are identified below. Owner -User Acquires real estate mostly for its use or control. Vacancy & investment yield are not primary criteria. Property suitability is the major objective. Typically, a medium to long-term owner. 2 Secure Income Seeks an established, secure income stream; normally does not change the property in Investor any meaningful way. Usually favors a long-term ownership. 3 Developer Acquires real estate to physically or legally change it in some significant fashion; accepts substantial risk so expects major reward over a short -to -medium holding period. 4 Speculator Buys real estate solely as an investment with most of the reward at termination. Property use is not a primary consideration; medium -to -long-term holding period; Usually buys during very weak market conditions, so accepts huge risk. Mantra: buy low, sell high. 5 Value Growth Buys real estate mostly for price appreciation. Property use is usually not a major Investor consideration. Typically buys during conditions of rapidly increasing prices; prefers a short -to -medium ownership period. 24-985 Kirkham Appraisals Inc. Page 55 Highest and Best Use Most Likely User The most likely user is also important. Clearly, users of an age -restricted, multiunit residential structure have needs and preferences that are much different from young married couples with small children. Similarly, the most likely buyer of a handicap accessible home is a handicap person. This most -likely buyer would perceive the special physical features as beneficial, not detrimental. Preferences and needs of the most likely user affect value, so the most likely user should be identified to judge the extent that existing or proposed improvements fulfill those preferences or needs. Nationally -recognized users typically pay higher prices and rents as compared to local users. Timing of Use A crucial component of a highest and best use is timing. If the timing of a use is not now, when is it? When timing for a specific use cannot be identified, then that use is not the best. If the highest use is not within a decade, then the time -value of money usually precludes that use. When the timing of a use is within a few years, what is the interim use? Remaining dormant is a legitimate interim use. Ideal Improvement Identification of the "ideal improvement" is an essential element of highest and best use. If the property appraised is vacant land, the ideal describes what should be built. If the existing improvements (one or more buildings and site improvements) have the same or similar attributes as the ideal, then the existing improvements have no or minimal depreciation. Obviously, the opposite also applies. The described ideal improvement is as specific as market data will allow. The ideal improvement is the physical use of the land as though vacant. 24-985 Kirkham Appraisals Inc. Page 56 As Though Now Vacant Land If subject parcel were vacant, how would it be used? This question is answered by applying the four tests of highest and best use. Dally Permissible Legal restrictions fall into two main categories - private and public. Private restrictions are agreements imposed by previous owners. Examples include access easements, use limitations, and leases. Public constraints include zoning, right-of-way easements, historic districts, and utility easements. Unless specifically stated otherwise, there are no known atypical private or public restrictions. Zoning permits a variety of residential uses including single family development up to high density apartment complexes. Dense residential (R-4): The purpose of this district is to provide for the development of dense residential districts, including apartment buildings and apartment complexes composed of clusters of abutting zero lot line residences, duplexes, threeplexes and fourplexes. Single household dwellings, abutting zero lot line residences, duplexes, threeplexes, fourplexes and apartments are permitted. Class III residential production buildings are allowed only in clustered arrangements as provided elsewhere in this title. Physically Possible Physical attributes commonly considered include size, shape, access, flood potential, topography, and availability of utilities. Characteristics that may be significantly detrimental but the appraiser(s) are not trained to detect or determine environmental hazards or soil conditions. There are no known environmental concerns or adverse soil conditions. The land is not located in a FEMA special flood hazard. Sewer and water connections are proximate and access is convenient. The subject's 2.05+/- acre size, low traffic frontage, and efficient shape are adequate for a variety of residential uses. Its location near other residential uses is beneficial for a residential use. There is a local railroad on the east side of the property that may cause some noise concerns, but several other residential development have occurred along the same rail line, so the impact is considered minimal. In summary, the subject's physical attributes are conducive for a myriad of legal residential uses. Financiallv Feasible Uses that are impossible or improbable physically and legally are first eliminated. Those uses that remain are then tested to determine whether they produce sufficient net income to fully pay for all operating expenses and provide adequate compensation for all invested capital. Residential vacancy is low in Eastern Idaho at this time. Residential sales prices are currently commensurate with residential construction costs. Currently a residential use is a financially feasible use. There are current headwinds which should be considered, like the monetary policy that has increased mortgage interest rates thus reducing effective purchasing power. Caution should be taken through the next several years until the real estate sector is expected to stabilize. Maximum Productivit Maximum productivity is considered only if more than one use survives the first three tests. This concept holds land will be developed with the use that returns the greatest positive reward over time assuming it is appropriately supported. However, the numerical return should not be the sole determinant. The numerical reward must be weighted within the context of risk. When a use is expected to produce a very attractive return but the risk is very high, that use is often eliminated. A residential use is currently the maximally productive use for the subject property. 24-985 Kirkham Appraisals Inc. Page 57 Conclusion As Though Now Vacant Physical Use Timing of Physical Use Interim Use Market Participants Most Likely Buyer Most Likely User A New Residential Building/Buildings Immediately develop with the physical use No Interim Use A developer for immediate improvement Small, local tenants Considering the foregoing highest and best use determinations, comparables were selected with the same or similar highest and best use. This data is very influential while forming a value opinion for the property appraised. 24-985 Kirkham Appraisals Inc. Page 58 Land Value "As Is" 24-985 Kirkham Appraisals Inc. Page 59 Land Value Introduction The best method of valuing vacant land is the sales comparison approach. Sales of similar sites are gathered and compared to the parcel being appraised. Differences affecting value are noted. Adjustments to compensate for dissimilarities are applied applicable transactions. Adjusted comparables produce an indication of value for the subject parcel. Any factor can affect value. Those considered during this appraisal's land valuation process included yet are not limited to prominence of location, date of sale, size, shape, availability of utilities, zoning, topography, and access. Numerous sales were reviewed; however, only those deemed most comparable were selected for detailed analysis. All conveyed on an "arm's length" basis except if specifically noted otherwise. Land sales shown herein are presented on a dollar per square foot basis as a common denominator. Abbreviations Used in Some Tables SEC = Southeast Corner Sim = Similar NWC = Northwest Corner Inf = Inferior Loc Fea = Locational Features Sup = Superior There are few, if any, conveyances of truly similar land. Therefore, an opinion of the subject's land value was developed after consideration of scarce sales, which hinders the sales comparison process. Moreover, the allocation method of land valuation was also considered. 24-985 Kirkham Appraisals Inc. Page 60 Land Sale #1 Commercial Property Land Location Data A*Wess city IC43u my TBD Bench Rued Pocatello Banr:xk Sales Data Grantor Size in SF Fmnci rig Terms Th2Churrh ofJamsCFrist- f Latter -Day Grantee MSP Capital, LLC Cash W5eller Properly RghtsCornreyed Fee Simple Sale Date 5ales Price Can ditians of Sale 022 51,29v,OC.v" Arrn5Len& Days un Ma rk et Cash E qu fora k: nt Price iar-1111ia6o n 690 51 29�,CCC.uv Dean Funk: MLS Economic Indicator Site Data Paruel # Size in SF RPCPPM41•27 22 E,E-S Fond Size in Acres RCP E. 58 Appraisal Indicators G—werall PritePer Unit runs Beat Multiplier $4SD .-v Capital¢atiun RatL- C. C:1"5 P61 Vacancy EGI Expenses NGI 50 15D 1w Iso Isc 24-985 Kirkham Appraisals Inc. Page 61 Land Sale #2 Commercial Property Land Location Data Addr-ss Gty lCmnty TBDQuinn R -Dad Pu-mtellff IB@nncck Sales Data Grantor Size in SF Fran d rig Terms Gary Ratliff Grantee Fant CaBf k-- :-:eller Property Rights Conveyed Gate City Builder- Fee=irrFle SaleDat e 5a1es Price Gun ditkip nsfff Sale 2020 $-2750M.O-- m5 Length Days on Ma rket Cash E qu iwa le rrt Prior a Vefflirafim UnknnwrrA75,GM.-3u anathanVintent Buyer Economic Indicator Site Data Parcel ft Size in SF TBD 162,134 Fant Size in Acres RH 3.72 ADl)raisa I Indicators Overall Price Per Unit RE! ntMultiplier $ 2.93 jaw Capital¢atifln Rate C.c u5_ PCS Vacancy EGI FRerrses IN01 $0 � $0 Isc 24-985 Kirkham Appraisals Inc. Page 62 Land Sale #3 Commercial Property Land Location Data Ad d reo City I C43Uvr7f 4335 H@MhnmE Read PD=Ello lBannuck Sales Data -Granter Size in SF Finan dng Terms Trustmsof the Eriksen Family Trust Grantee Cal Kunkel C33h tv =eller Pruperty Rights Conveyed Fee ample Sale Date Sales Price Canditiansaf Sale VF.?2021 51 WOOM.00 Arrr= Ler} h Days on Market Cash EquivaLent Price Veritkation. Unknown. 51,WZ),'XCL�- Chris Foulkrod:Agent Economic Indicator Site Bata Parcel 0 Size in SF RPRPCPP0,013CO EC C. 257 Zoning Size in Arres RCP 13.?Q Appraisal Indicators Overall Price Per Unit rossRentMultiplier Is 3.•M[} lc.cc Capitalization Rate v --,5= Po 1lcarroy EGI ExpensEs IN01 5v 1w $0 $0]Is-- C om me nt s This Lr* thesalei if a Iarge parr -El alarg I-86 and Hauvtharne Road aaosafrom Hume DeWt. There are commercial uses as wEll as multkfamily antisirglefami ly residential usessun-oundirig thEsu4ect P-t.re .�r 24-985 Kirkham Appraisals Inc. Page 63 Land Sale #4 Commercial ProRY Land J Location Data Address City I County TRDSouth 6th Avenue Pocatello Bannock Sales a ata Site a ata -G raptor Size in SF Frkarrri rig Terms South End LLU Grartee Zoning Cash tr} Sel ler Property Rk;hts Conveyed JGnathan Vincent 3.E' Fee Simple SaleDat e Sales Price Con ditinnsof 5a le I-, -,1 $425,GM Arrrt5 Length Days on Ma rket Cash E qu iva lent Price $fiafkm 5 42 S;OM:20 SteveVigli atu ro: Agent Economic Indicator Pa rml #! Size in SF TQC 15?,E27 Zoning Size inArres MU 3.E' Alalaraisa I Indicators Overall Price Per Unit ros5RerrtMulti plier 5. Capitalization RatL- C.v v5= PGI Vacancy EGI ExpensesIN-01 5v 0 ISO Iso]Is-- C om menta This is a parte) of land just west of PMT transpor ion. The land was roned MU by RamockCounty at theti mL- ofsal e. ThisLr. thesiteofneurlydevelaped1Zu-ritt-mvn!- ume{amplex The tutalperunit is$"23,611. P-rure h •l r ~ / A`• tx ' L P i :'.•`,J• ,fid-■ L.. y I.1 ��•- . 24-985 Kirkham Appraisals Inc. Page 64 Land Sale #5 Commercial Prop" Land Location Data JAIIIEVESS aty CAxjniy 29 5 East Chu bbuck Read Ch ubbu do JBannock Sales Data G rantior Size in 5F Fnarra rig Terms Brady and CandeeCarter Grantee Cash to Seller property Rghts'Conveyed Arbor Court LLC C-2 Fee Simple S.alsDatg Sales price Condrtions-of 5a le 2021 5 61 20DD.00 ma Length Days on Ma rket Cash E qu ora lm Prase Vaffngon U known G1 2,000.01) CkmingStatement Economic Indicator Site Data Parcel V Size in 5F RPRCEBAC C3131 2L,S•CE Zoning Size in Acres C-2 1. AD10fai5a I Indicators Merall MEM per Unit mm Rent Multiplier 57.24 Capitalization Rate v v5= PGI Vacancy EGI ERNFUes NOI 5v 0 0 Iso �a C om me nts This is a parcel of land on E astChubbuck Road just north ofthe neur-Ch ubbuck City Hall. Thesubjertwas xoned G2 tommertial general at the time ofsaIE. Trtal dailytraf ic:of 1gODDrarsperda,svias reported by ITD. Thi sIarid was developedwith a 22ru nit mulitfamilydmrelopmen�which equatesWS21,957 per un it. PrMwe ��w�ir�rl X11 ti M JU�y r ' � t 24-985 Kirkham Appraisals Inc. Page 65 Land Sale #6 Commercial Property Land Location Data SE&5 Data Site Data appraisal Indicators Irerdll Price per Unit rffss Rent Multiplier '. 22 Capitalization Rate Lco nomic Indicato r PGI Vacancy EGI Expenses NOI sv 0a So 5]Is-- C om menta Thesubjettparoelwas purthasedtodeveloped as large apartm ent corn pl Ex. Accord ingtothe agent,thetomplexwilI be high end romFW e�c The amfluntof units being built is unknown. p-r�.re w 1 4 Ir �dIF£SS CS t7f C�LIF�r T�DICnudsen Rfwd Chubbudc Bannock -G ranbar Firanci ng T�Fms F; nudsen PoarFarms CashtaSeller -G rart�e property Rghts Conveys d '.'1L�G Chu bbuck LLQ Fee Simple SaleDate les price Condrtinnsflf Sale v" 53,1vv,�7C.v ms Length Days an Ma rket Cash Equivalent price 7- on 53,1vv,.vv I}an�ebe:Agent Parcel V Size in 5F RPRCYC204 �35,6"v Zoning Size 24-985 Kirkham Appraisals Inc. Page 66 in Ames G� 1v.uv 24-985 Kirkham Appraisals Inc. Page 66 Land Value Summary of Land Sales # Location Sale Size (SF) Zoning Purchase Price/SF Date Price 1. TBD Bench Road, 09/22 286,625+/- RCP $1,290,000 $4.50 Pocatello 2. TBD Quinn Road, 05/20 162,134+/- RH $475,000 $2.93 Pocatello 3. 4335 Hawthorne Road, 08/21 600,257+/- RCP $1,800,000 $3.00 Pocatello 4. TBD South 51 Avenue, 12/21 157,687+/- MU $425,000 $2.70 Pocatello 5. 295 East Chubbuck Road, 06/21 84,506+/- C-2 $612,000 $7.24 Chubbuck 6. TBD Knudsen Blvd, 06/22 435,600+/- C-2 $3,100,000 $7.12 Chubbuck Subject Lot 15 Legacy Park - 89,568+/- R-4 - - Division #2, Chubbuck 24-985 Kirkham Appraisals Inc. Page 67 -rf. ub�jeCt Property. r hUb • L.F k . • 2116 4r 7-1 1� r ' ~'y aF JJ _- wT ry 4 �yp i•IJ +f ` 1 � i f �Yy 'I r'/y'.� f ff /r. Apt � �+• {. T' 4r' At LL � a s nage, .2M4,ki ,. =W:w� , ,fir,;• _ . �:'��``�Fi'+ �r }syu `�'L -.I � � '+Jii� •._—�i'���F/s � .. �V�r Land Value Quantitative Adjustment Grid Range of Values $2.95 to $6.73 Mean $4.78 24-985 Kirkham Appraisals Inc. Page 69 Land/Site Adjustment Grid SUMMARY OF COMPARABLES Subject 1 2 3 4 5 6 Date of Sale 09/22 05/20 08/21 12/21 06/21 06/22 Zoning R-4 RCP RH RCP MU C-2 C-2 Utilities City City City City City City City Sale Price $1,290,000 $475,000 $1,800,000 $425,000 $612,000 $3,100,000 Size (SF) 89,568 286,625 162,134 600,257 157,687 84,506 435,600 Price/Square Foot $4.50 $2.93 $3.00 $2.70 $7.24 $7.12 ADJUSTMENTS Property Rights Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Adjusted Price/Foot $4.50 $2.93 $3.00 $2.70 $7.24 $7.12 Cond/Terms - - - - - - Ad'usted Price/Foot $4.50 $2.93 $3.00 $2.70 $7.24 $7.12 Market (Time) Adj. $0.00 $0.18 $0.09 $0.05 $0.24 $0.00 Adjusted Price/Foot $4.50 $3.11 $3.09 $2.75 $7.48 $7.12 Location - - - - - - Zoning - - - - ($1.50) ($1.42) Size $0.59 $0.22 $1.53 $0.20 ($0.02) $1.04 Utilities - - - - - - Shape/Topography - - - - - - Frontage/Access - - - - - - Other - - - - - - ADJUSTED VALUE $5.09 $3.33 $4.62 $2.95 $5.97 $6.73 Net Adjustment $0.59 $0.22 $1.53 $0.20 ($1.51) ($0.39) Range of Values $2.95 to $6.73 Mean $4.78 24-985 Kirkham Appraisals Inc. Page 69 Land Value Analysis & Conclusions The subject and all cited comparable sales share several characteristics. They are all located in Chubbuck or Pocatello and have similar possible development uses. These commonalities justify inclusion of these transactions in this analysis. Often there are differences between the property appraised ("the subject") and a comparable sale. When the dissimilarity affects value, an adjustment to the sale price of the comparable is necessary. Property Rights Agreements or laws create partial interests in real estate. A deed restriction or life estate usually reduces rights and value. If the subject is not affected by these limitations and a comparable is, then the comparable's sale price needs an upward property rights adjustment. In another situation, unfavorable leases eliminate a landlord's right to collect market rent, so the real estate sells for a below-market price. If the property appraised has no lease adversities and a comparable does have unfavorable leases, then the comparable requires upward adjustment. Unless stated otherwise, property rights are virtually the same for the subject and all cited conveyances. Hence, no adjustments are necessary for this element of comparison. Financing Sub -market financing is a common technique used to finance the acquisition of real estate during periods of high interest rates. When non -market financing is used, the financing may be favorable to the buyer so the sale price is inflated. The escalated price can be envisioned as a composite of the worth of real estate plus the value of advantageous financing. Since value created by financing is not real property, the contribution of the advantageous financing must be deducted from total sale price to derive market value for just the realty. On the opposite hand, there are instances where the buyer assumes unfavorable financing, so the sale price is diminished. In the latter case, an upward adjustment must be applied to the sale price of the comparable thusly deriving the market value of the real estate. Unless a statement is made to the contrary, non -market financing was not used to acquire any comparable sale cited in this report. Therefore, no compensations are needed for financing. Conditions of Sale An adjustment for conditions of sale is necessary when a criterion of market value is violated. It could compensate for unusual buyer or seller motivations. For instance, when a seller gives a buyer an atypical rebate, discount, credit, or something of value to induce a conveyance, the sale price is usually inflated. In this case, it is logical to deduct the worth of the giveback from the sale price. Residual sums represent the property's market value. In another scenario, a buyer may pay a premium to facilitate an assemblage. In this instance, the premium must be deducted from the sale price to derive market value for that conveyance. No sales were adjusted for conditions of sale. Expenditure Post Sale This is a situation when a buyer is compelled to invest additional money into a property immediately after acquisition for some atypical reason. Post -sale invested sums are appropriately added to a comparable's sale price thereby producing an adjusted sale price. Examples are demolition costs or building -code compliance costs. Unless a contrary statement is made, no adjustments are necessary for post -sale expenditures. Market Conditions Adjustments for market conditions are commonly referred to as time adjustments, but this is misleading. Value does not change due to the passage of time; sometimes it remains stable. Often real estate values fluctuate due to changes in supply and demand, interest rates, employment, or inflation. This type of adjustment compensates for change in market conditions between a sale's transaction date and a later point in time. All cited comparables conveyed between May 2020 and this report's effective value date. The market did increase to about the middle of 2022. Sales prior to 2022 were adjusted at 3% annually up through the middle of 2022. Location Each property was rated to the subject for locational aspects such as value growth potential, access, and general desirability. Those transactions with superior locations were adjusted downward and vice versa. All sales are from Chubbuck or Pocatello, so no adjustments were considered necessary. Physical Attributes A myriad of physical characteristics can affect land value. Some examples are lot size, shape, site orientation, availability of utilities, and soil conditions. Those sales with superior physical qualities warrant downward adjustment and vice versa. 24-985 Kirkham Appraisals Inc. Page 70 Comparables 5 and 6 are zoned commercial general, but both parcels have been developed with multi -family developments. It is apparent that the land for the commercial general zoning is higher than that with RCP or RH zoning, so these sales are adjusted downward. Size can be an influential factor in value for commercial land. Often smaller size land will sell at a premium over larger parcels of land. I have performed a trend analysis, which indicated some correlation between size and price per square foot: Size Trend $ 7.00 $6.00 �-- i Y =-3E-06x + 4.5515 R' =0.152 $5.40 i $4.00 ........... •• .. .. .. .............. .......... $3.00 • i i $ 2.00 $1.60 164,000 246,0{}0 300,000 460,000 560,666 606,660 700,000 Analysis & Conclusions The appraiser is well aware the cited conveyances are less than ideal comparisons. However, sales of more comparable properties were not discovered during our research. Selected transactions were chosen for analysis because they are all moderately priced, commercial parcels like the subject, that have similar highest and best uses. The adjusted data for the subject varies from $2.95 to $6.73 per sq. ft., with a $4.78 per square foot average. A value slightly above the central tendency is considered reasonable, as the two most recent sales are the highest adjusted sales price per square foot. After consideration of all factors pertaining to and influencing land values, the following is selected as the most fitting value indication for the subject parcel as though vacant. Accordingly, Subject Property 89,568 Sq. Ft. @ $5.00 Per Sq. Ft. _ $447,840 Indicated Market Value of Subject Land "As Is " $445,000 Via Sales Comparison, Say 24-985 Kirkham Appraisals Inc. Page 71 Value Summary The subject property physically consists of a 2.05+/- acres portion of larger parcel RPRCCPC045401. The subject is accessed near the tennis courts in Capell Park. The land is in a developing area with office, medical office, industrial, high density residential, and vacant land uses, near a new I-15 Interstate Interchange. This tract of land is zoned "R-4" Dense Residential by the City of Chubbuck. A highest and best use analysis concluded a residential use would yield the greatest net return to the land. The cost approach is only applicable buildings with minimal depreciation. In this case, this approach is not an appropriate valuation method. Vacant land is seldom leased in this locale, so rental data for just the land is almost non-existent. Hence, the income approach is also not applicable. The sales comparison approach firmly supports the worth of the land as though vacant. After careful consideration of all factors pertaining to and influencing value, the data and analysis thereof firmly supports a market value for the subject real estate as of March 11, 2024. $445,000 Market Value "As Is" 24-985 Kirkham Appraisals Inc. Page 72 Exposure Time Terminology abounds in the real estate appraisal profession. Two related but different concepts that are often confused are Exposure Time and Marketing Time. USPAP specifically addresses the confusion. Definition Jl Explanation Marketing time and exposure time are both influenced by price. That is, a prudent buyer could be enticed to acquire the property in less time if the price were less. Hence, the time span cited below coincides with the value opinion(s) formed herein. USPAP Standard rule 1-2(c)(iv) requires an opinion of exposure time, not marketing time, when the purpose of the appraisal is to estimate market value. In the recent past, the volume of competitive properties offered for sale, sale prices, and vacancy rates have fluctuated little. Sale concessions have not been prevalent. In light thereof, an estimated exposure time for the subject is 0 to 12 months assuming competitive pricing and prudent marketing efforts. 24-985 Kirkham Appraisals Inc. Page 73 "The estimated length of time the property interest being Backward looking, ends on Exposure Time appraised would have been offered on the market prior to the the effective value date. (Statement 6) hypothetical consummation of a sale at market value on the Based on factual past events ' effective date of the appraisal". Marketing Time "An opinion of the amount of time it might take to sell a real or Forward looking, starts on the effective value date. A (Advisory Personal property interest at the concluded market value forecast based on Opinion 7) during the period immediately after the effective date of the expectancies of future appraisal". occurrences. Marketing time and exposure time are both influenced by price. That is, a prudent buyer could be enticed to acquire the property in less time if the price were less. Hence, the time span cited below coincides with the value opinion(s) formed herein. USPAP Standard rule 1-2(c)(iv) requires an opinion of exposure time, not marketing time, when the purpose of the appraisal is to estimate market value. In the recent past, the volume of competitive properties offered for sale, sale prices, and vacancy rates have fluctuated little. Sale concessions have not been prevalent. In light thereof, an estimated exposure time for the subject is 0 to 12 months assuming competitive pricing and prudent marketing efforts. 24-985 Kirkham Appraisals Inc. Page 73 Contingent and Limiting Conditions 1. By this notice, all persons, companies, or corporations using or relying on this report in any manner bind themselves to accept these Contingent and Limiting conditions, and all other contingent and limiting conditions contained elsewhere in this report. Do not use any portion of this report unless you fully accept all Contingent and Limiting conditions contained throughout this document. 2. The "Subject" or "Subject Property" refers to the real property that is the subject of this report. An Appraiser is defined as an individual person who is licensed to prepare real estate appraisal -related services in the State of Idaho and affixes his / her signature to this document. 3. Throughout these Contingent and Limiting Conditions, the singular term "Appraiser" also refers to the plural term "Appraisers". The terms "Appraiser" and "Appraisers" also refer jointly / collectively to "Kirkham Appraisals Inc.", its officers, employees, contractors, personnel, staff, shareholders, members, and affiliates. The masculine terms "he" or "his" also refer to the feminine term "she" or "her". 4. In these Contingent and Limiting Conditions, the "Parties" refers to all of the following collectively: (a) the Appraiser(s), (b) Kirkham Appraisals Inc., (c) the client, and (d) all intended users. 5. These Contingent and Limiting Conditions are an integral part of this report along with all certifications, definitions, descriptions, facts, statements, assumptions, disclosures, hypotheses, analyses, and opinions. 6. All contents of this report are prepared solely for the explicitly identified client and other explicitly identified intended users. The liability of the Appraiser is limited solely to the client. There is no accountability, obligation, or liability to any other third parry. Other intended users may read but not rely on this report. In no event, shall the Appraisers be liable for consequential, special, incidental or punitive loss, damages or expense (including without limitation, lost profits, opportunity costs, etc.) even if advised of their possible existence. If this report is placed in the hands of anyone other than the client, the client shall make such party aware of all contingent and limiting conditions, assumptions, and disclosures. Use of this report by third parties shall be solely at the risk of the third party. 7. This document communicates the results of an appraisal assignment. This communication is not an inspection, engineering, construction, legal, or architectural report. It is not an examination or survey of any kind. Expertise in these areas is not implied. The Appraiser is not responsible for any costs incurred to discover, or correct any deficiency in the property. 24-985 Kirkham Appraisals Inc. Page 74 Contingent and Limiting Conditions 8. As part of this appraisal, information was gathered and analyzed to form opinion(s) that pertain solely to one or more explicitly identified effective value dates. The effective value date is the only point in time that the value applies. Information about the subject property, neighborhood, comparables, or other topics discussed in this report was obtained from sensible sources. In accordance with the extent of research disclosed in the Scope of Work section, all information cited herein was examined for accuracy, is believed to be reliable, and is assumed reasonably accurate. However, no guaranties or warranties are made for this information. No liability or responsibility is assumed for any inaccuracy which is outside the control of the Appraiser, beyond the scope of work, or outside reasonable due diligence of the Appraiser. 9. Appraiser and Client agree the following mutual limitation of liability is agreeable in consideration of the fees to be charged and the nature of appraisal services provided under this Agreement. Appraiser and Client agree to the fullest extent permitted by applicable law, that the Appraiser's and its Personnel's maximum aggregate and joint liability to the other party for claims and causes of action relating to this Agreement for appraisals or other services under this agreement shall be limited to $25,000 or the total of all fees and costs charged by the Appraiser for services that are subject of the claim(s) or cause(s) of action. This limit of liability extends to all types of claims or causes of action, whether in breach of contract or tort, including without limitation claims / causes of action for negligence, professional negligence, or negligent misrepresentation on the part of either party or its Personnel, but excluding claims / causes of action of intentionally fraudulent conduct, criminal conduct, or intentionally caused injury. The Personnel of each parry are intended third party beneficiaries of this limitation of liability. The word "Personnel", as used in this paragraph, means the respective party's staff, employees, contractors, members, partners, affiliates, and shareholders. Appraiser and Client agree that they each were free to negotiate different terms than stated in this Agreement or contract with other parties. 10. Real estate values are affected by many changing factors. Therefore, any value opinion expressed herein is considered credible only on the effective value date. Every day that passes thereafter, the degree of credibility wanes as the subject changes physically, the economy changes, or market conditions change. The Appraiser reserves the right to amend these analyses and/or value opinion(s) contained within this appraisal report if erroneous, or more factual -information is subsequently discovered. No guarantee is made for the accuracy of estimates or opinions furnished by others, and relied upon in this report. 11. In the case of limited partnerships, syndication offerings, or stock offerings in the real estate, the client agrees that in case of lawsuit (brought by the lender, partner, or part owner in any form of ownership, tenant, or any other party), the client will hold Kirkham Appraisals Inc., its officers, contractors, employees and associate appraisers completely harmless. Acceptance of, and/or use of this report by the client, or any third party is prima facie evidence that the user understands and agrees to all these conditions. 24-985 Kirkham Appraisals Inc. Page 75 Contingent and Limiting Conditions 12. For appraisals of multiunit residential, only a portion of all dwellings was observed. A typical ratio of observed dwellings roughly approximates 10% of the total number of units, and this ratio declines as the number of dwellings grows. It is assumed the functionality, physical condition, construction quality, and interior finish of unseen units are like the functionality, physical condition, construction quality, and interior finish of observed units. If unobserved dwellings significantly differ from those that were viewed in functionality, physical condition, quality, or finish, the Appraiser reserves the right to amend theses analysis and/or value opinion(s). 13. If the appraised property consists of a physical portion of a larger parcel is subject to the following limitations. The value opinion for the property appraised pertains only to that portion defined as the subject property. This value opinion should not be construed as applying with equal validity to other complementary portions of the same parcel. The value opinion for the physical portion appraised + the value of all other complementary physical portions may or may not equal the value of the whole parcel. 14. Unless specifically stated otherwise herein, the Appraiser is unaware of any engineering study made to determine the bearing capacity of the subject land, or nearby lands. Improvements in the vicinity, if any, appear to be structurally sound. It is assumed soil and subsoil conditions are stable and free from features that cause supernormal costs to arise. It is also assumed existing soil conditions of the subject land have proper load bearing qualities to support the existing improvements, or proposed improvements appropriate for the site. No investigations for potential seismic hazards were made. This appraisal assumes there are no conditions of the site, subsoil, or structures, whether latent, patent, or concealed that would render the subject property less valuable. Unless specifically stated otherwise in this document, no earthquake compliance report, engineering report, flood zone analysis, hazardous substance determination, or analysis of these unfavorable attributes was made, or ordered in conjunction with this appraisal report. The client is strongly urged to retain experts in these fields, if so desired. 15. If this report involves an appraisal that values an interest, which is less than the whole fee simple estate, then the following disclosure applies. The value for any fractional interest appraised + the value of all other complementary fractional interests may or may not equal the value of the entire fee simple estate. 16. If this appraisal values the subject as though construction, repairs, alterations, remodeling, renovation, or rehabilitation will be completed in the future, then it is assumed such work will be completed in a timely fashion, using non -defective materials, and proper workmanship. All previously completed work is assumed completed in substantial conformance with plans, specifications, descriptions, or attachments made or referred to herein. It is also assumed all planned, in -progress, or recently completed construction complies with the zoning ordinance, and all applicable building codes. A prospective value opinion has an effective value date that is beyond or in the future relative to this report's preparation date. If this appraisal includes a prospective valuation, it is understood and agreed the Appraiser is not responsible for an unfavorable value effect caused by unforeseeable events that occur before completion of the project. 24-985 Kirkham Appraisals Inc. Page 76 Contingent and Limiting Conditions 17. This valuation may or may not include an observation of the appraised property by an Appraiser. The extent of any observation is disclosed in the Scope of Work section of this report. Any observation by an Appraiser is not a professional property inspection. Viewing of the subject was limited to components that were not concealed, clearly observable, and readily accessible without a ladder on the property observation date. As used herein, readily accessible means within the Appraiser's normal reach without the movement of any man made or natural object. Comments or descriptions about physical condition of the improvements are based solely on a superficial visual observation. These comments are intended to familiarize the reader with the property in a very general fashion. 18. The allocation of value between the subject's land and improvements, if any, represents our judgment only under the existing use of the property. A re-evaluation should be made if the improvements are removed, substantially altered, or the land is utilized for another purpose. 19. The Client and all intended users agree to all the following. (A) This appraisal does not serve as a warranty on the physical condition or operability of the property appraised. (B) All users of this report should take all necessary precautions before making any significant financial commitments to or for the subject. (C) Any estimate for repair or alternations is a non -warranted opinion of the Appraiser. 20. Electric, heating, cooling, plumbing, water supply, sewer or septic, mechanical equipment, and other property systems were not tested. No determination was made regarding the operability, capacity, or remaining physical life of any component in, on, or under the real estate appraised. All building components are assumed adequate and in good working order unless stated otherwise. Private water wells and private septic systems are assumed sufficient to comply with federal, state, or local health safety standards. No liability is assumed for the soundness of structural members since structural elements were not tested or studied to determine their structural integrity. The roof cover for all structures is assumed water tight unless otherwise noted. This document is not an inspection, engineering or architectural report. If the client has any concern regarding structural, mechanical, or protective components of the improvements, or the adequacy or quality of sewer, water or other utilities, the client should hire an expert in the appropriate discipline before relying upon this report. No warranties or guarantees of any kind are expressed or implied regarding the current or future physical condition or operability of any property component. 21. Any exhibits in the report are intended to assist the reader in visualizing the subject property and its surroundings. The drawings are not surveys unless specifically identified as such. No responsibility is assumed for cartographic accuracy. Drawings are not intended to be exact in size, scale, or detail. 22. Value opinions involve only real estate, and inconsequential personal property. Unless explicitly stated otherwise, value conclusions do not include personal property, unaffixed equipment, trade fixtures, business - good will, chattel, or franchise items of material worth. 24-985 Kirkham Appraisals Inc. Page 77 Contingent and Limiting Conditions 23. All information and comments concerning the location, market area, trends, construction quality, construction costs, value loss, physical condition, rents, or any other data for the subject represent estimates and opinions of the Appraiser. Expenses shown in the Income Approach, if used, are only estimates. They are based on past operating history, if available, and are stabilized as generally typical over a reasonable ownership period. 24. No liability is assumed for matters of legal nature that affect the value of the subject property. Unless a clear statement to the contrary is made in this report, value opinion(s) formed herein are predicated upon the following assumptions. (A) The real property is appraised as though, and assumed free from all value impairments including yet not limited to title defects, liens, encumbrances, title claims, boundary discrepancies, encroachments, adverse easements, environmental hazards, pest infestation, leases, and atypical physical deficiencies. (B) All real estate taxes and assessments, of any type, are assumed fully paid. (C) It is assumed ownership of the property appraised is lawful. (D) It is also assumed the subject property is operated under competent and prudent management. (E) The subject property was appraised as though, and assumed free of indebtedness. (F) The subject real estate is assumed fully compliant with all applicable federal, state, and local environmental regulations and laws. (G) The subject is assumed fully compliant with all applicable zoning ordinances, building codes, use regulations, and restrictions of all types. (H) All licenses, consents, permits, or other documentation required by any relevant legislative or governmental authority, private entity, or organization have been obtained, or can be easily be obtained or renewed for a nominal fee. 25. Conversion of the subject's income into a market value opinion is based upon typical financing terms that were readily available from a disinterested, third party lender on this report's effective date. Atypical financing terms and conditions do not influence market value, but may affect investment value. 26. This appraisal was prepared by Kirkham Appraisals Inc. and consists of trade secrets and commercial or financial information, which is privileged, confidential, and exempt from disclosure under 5 U.S.C. 522 (b) (4). 27. The Appraiser is not required to give testimony or produce documents because of having prepared this report unless arrangements are agreed to in advance. If the Appraiser is subpoenaed pursuant to court order or required to produce documents by judicial command, the client agrees to compensate the Appraiser for his appearance time, preparation time, travel time, and document preparation time at the regular hourly rate then in effect plus expenses and attorney fees. In the event the real property appraised is, or becomes the subject of litigation, a condemnation, or other legal proceeding, it is assumed the Appraiser will be given reasonable advanced notice, and reasonable additional time for court preparation. 24-985 Kirkham Appraisals Inc. Page 78 Contingent and Limiting Conditions 28. Effective January 26, 1992, the Americans with Disabilities Act (ADA) - a national law, affects all non- residential real estate or the portion of any property, which is non-residential. The Appraiser has not observed the subject property to determine whether the subject conforms to the requirements of the ADA. It is possible a compliance survey, together with a detailed analysis of ADA requirements, could reveal the subject is not fully compliant. If such a determination was made, the subject's value may or may not be adversely affected. Since the Appraiser has no direct evidence, or knowledge pertaining to the subject's compliance or lack of compliance, this appraisal does not consider possible noncompliance or its effect on the subject's value. 29. Kirkham Appraisals Inc. and the Appraiser have no expertise in the field of insect, termite, or pest infestation. We are not qualified to detect the presence of these or any other unfavorable infestation. The Appraiser has no knowledge of the existence of any infestation on, under, above, or within the subject real estate. No overt evidence of infestation is apparent to the untrained eye. However, we have not specifically inspected or tested the subject property to determine the presence of any infestation. No effort was made to dismantle or probe the structure. No effort was exerted to observe enclosed, encased, or otherwise concealed evidence of infestation. The presence of any infestation would likely diminish the property's value. All value opinions in this communication assume there is no infestation of any type affecting the subject real estate or the Appraiser is not responsible for any infestation or for any expertise required to discover any infestation. Our client is urged to retain an expert in this field, if desired. 30. All opinions are those of the signatory Appraiser based on the information in this report. No responsibility is assumed by the Appraiser for changes in market conditions, or for the inability of the client, or any other parry to achieve their desired results based upon the appraised value. Some of the assumptions or projections made herein can vary depending upon evolving events. We realize some assumptions may never occur and unexpected events or circumstances may occur. Therefore, actual results achieved during the projection period may differ from those set forth in this report. Compensation for appraisal services is dependent solely on the delivery of this report, and no other event or occurrence 31. No warrantees are made by the Appraiser concerning the property's conformance with any applicable government code or property covenant including but not limited to all laws, ordinances, regulations, agreements, declarations, easements, condominium regulations, restrictions, either recorded or unrecorded. The client is urged to engage the services of a licensed attorney to confirm any legal issue affecting the property appraised. No liability or responsibility is assumed by the Appraiser to determine the cost of replacing or curing any supposedly defective physical component. 32. In the event of an alleged claim due to some defective physical component, the client must notify Kirkham Appraisals Inc. and allow its representatives and experts to examine and test the alleged defective component before any repairs or modifications are made. If any type of repair or modification is made without the knowledge of the Appraisers, the Appraiser is released from all liability, real or alleged. 24-985 Kirkham Appraisals Inc. Page 79 Contingent and Limiting Conditions 33. The client and all explicitly identified intended users agree to notify in writing Kirkham Appraisals Inc., within one year of this report's preparation date, of any claim relating to or arising from this report regardless of any statute of limitations. If Kirkham Appraisals Inc. does not receive this written notification within the year period defined in the paragraph, then the claimant releases the Appraiser from all claims arising from or related to this report. 34. The client and all explicitly identified intended users acknowledge that any claim relating to this report shall be settled in accordance with the commercial arbitration rules of the American Arbitration Association with the Parties each paying an equal share of all associated costs. 35. Any alleged claim must be filed in the Circuit Court for the County that encompasses most of or all of Pocatello, Idaho 83206 where the Appraiser's business office is located. If a court of law voids any portion of these Contingent and Limiting Conditions, then the remainder remains in full force and effect. The claimants(s) agree not to contest the venue set forth herein and to submit to, and not contest, the exercise of personal jurisdiction over them by the foregoing court. The claimant(s) waive all rights concerning the exercise of personal jurisdiction of them by the foregoing courts and all claims of or concerning forum non - conveniences in the foregoing forum. 36. Superseding all comments to the contrary regardless of the date, this report may not be transferred or assigned without the prior written consent of Kirkham Appraisals Inc., the copyright holder. 37. No part of this report shall be published or disseminated to the public by advertising media, public relations media, news media, sales media, electronic devices, or other media without the prior written consent of Kirkham Appraisals Inc.. This restriction applies particularly as to analyses, opinions, and conclusions; the identity of the Appraiser; and any reference to the Appraisal Institute or its MAI, SRPA, or SRA designations. Furthermore, no part of this report may be reproduced or incorporated into any information retrieval system without prior written permission from Kirkham Appraisals Inc., the copyright holder. 24-985 Kirkham Appraisals Inc. Page 80 Certification The appraiser signing this report make the following certifications to the best of his / her knowledge and belief. ➢ The statements of fact contained in this report are true and correct. ➢ Reported analyses, opinions, and conclusions are limited only by the assumptions and limiting conditions contained within this report, and are the appraiser's personal, impartial, and unbiased professional analyses, opinions, and conclusions. ➢ The appraiser has no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved. ➢ The appraiser has no bias with respect to the property that is the subject of this report, or to the parties involved with this assignment. ➢ This engagement is not contingent upon developing or reporting predetermined results. ➢ Compensation paid to the appraiser is not contingent upon the development or reporting of a predetermined value, or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of the appraisal. ➢ Reported analyses, opinions, and conclusions were developed, and this report was prepared in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) ➢ A statement regarding observation of the subject property by the appraiser is listed below. The appraiser is not a professional property inspector. Furthermore, the appraiser has no formal training in the use of tools or instruments as part of a professional property inspection. Observations by the appraiser, if any, was limited to just those physical features and attributes that are not hidden or obscure in any fashion by any object or weather condition. The appraiser did not used any tools or instruments, beyond those typically used by appraisers to probe, study, investigate, detect, or discover any physical feature or attribute that was not clearly visible on the date the property was observed. ➢ No one provided significant real property appraisal assistance to the appraiser(s) signing this certification. ➢ The appraisers have not performed any services, as an appraiser or in any other capacity, regarding the property that is the subject of this report during the three-year period immediately preceding acceptance of this assignment. 24-985 Kirkham Appraisals Inc. Page 81 Certification ➢ Use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. I have completed all continuing education requirements for designated members of the Appraisal Institute. ➢ After careful consideration of all factors pertaining to and influencing value, the data, and analysis thereof firmly supports the following final value opinion(s) for the subject property as of March 11, 2024: $445,000 Market Value "As Is" Brian Kirkham, MAI Certified General Appraiser Idaho License CGA -3486 License Expiration Date: 5/9/2024 24-985 Kirkham Appraisals Inc. Page 82 It Addenda... Digital Images Our world is rapidly shifting to a global economy in which technology and e-commerce play major roles. Digitized signatures and digital photographs are key elements of this shift. This appraisal may contain digital photographs, which are true and accurate representations. Brightness and/or contrast of these images may have been adjusted to enhance visibility when lighting conditions were too light or too dark. However, the content of these images was not altered or augmented in any way. Digital signatures may be affixed to this document. Statement 8 of USPAP recognizes and addresses the proper use of digitized signatures. In this document, a digital signature is a reproduction of the appraiser's actual signature. Software used for the affixation has a password security feature, which controls its usage. 24-985 Kirkham Appraisals Inc. Page 83 Technical Qualifications Technical Qiii-llifications Brian Kirkham, MAI Khlkh$ur Applaiwls hoc, 2363 tluskwiew Court Aixl Pocalello, ll3 33201 Education: B.A_ Degree, Applied Ecooamifis Idaho State Umvenity, 2010 IDAHO CERTIFIED GENERAL APPR_ALSER CGA -3486 Service Edncanon Chai man for Sauthem Idaho Chapter ofthe Appraisal Instituse (201$-2021) 5pecialired Background: - Seminars and courses sponsored by the Appraisal Institute, Amenean Society ofFarm Managers and Rural Appraisus and American Institute of Real Estate Appraisers, and Institute ofReal Estate Apprwsal Studies mel udinp: Appraisal IuFbrute-Quanntative Analysis Appraisal IuFbrure-Adi,anmd Concepts and Case Studies Appraisal Inshawrte-Advanced Market Analysis and Highest and Best Use Appraisal In�-Adv amced Income Capnalization Appraisal IuFbrure-General Ayppraiser Income Capitalization I Appraisal IuFbr te-General Appraiser IncomeCapitafizalioaTl Appraisal IuFbrure-GeneralAppraiser MadLet Analysis and Highest & Best Use Appraisal Institute -General Sales Compmison Approach Appraisal Institute -General Gast Approach and Site Analysis Appraisal Institute -General Report Wntmg Appraisal Institute -General Appraiser Market Analysis and Highest & Best Use Appraisal Insti lute -Statistic s Appraisal Inshrtute-Adwanced Residential Applications and Cast Studies USPAP USPAP Update Institute ofReal Estate Appraisal Studies -Fundamentals of Real Estate Appraisals Institute of Real Estate Appraisal Studies— Residential Appraisal Techniques I Institute of Real Estate Appraisal Studies— Highest and Best Use Numerous otherrelatedcow—es, seminers and permmal study Eminent Domain and Condemnation App raisal Experience: - Nineteen years of appraisal experience and appraisal relies Functions I am a designated member of the Appraisal Institute. Area and Iype of Appraisals; -Performed appraisals and consm1ung in Idaho with experience in Soulhem and Southeastern Idaho on residential and commercial properties. nr ws of Oowpawnal end PrdFiyhlrX,Fl k*nYf�6 neparhnxrt oa EM 6o,•ernlrg Ado- tM CEFMFLM- GENERAL APPIUSEA MAN KrInI KIPKHAM teSSDLIS { VIEW GT POCATER.I.Q 0 99201 .PLbe,yS Ay CCV }MSM 95�➢3'F324 orA,on!an„ HLlgD3' E.Prss 24-985 Kirkham Appraisals Inc. Page 84 Engagement Letter Appraisal Assignment I 4w I qk MW Vj A N, I k1i, I ppraisals P.O. Bax 2503 Pocatello, Idaho 83206 (2081233-4132 DATE OF AGREEMENT: 02126/2024 PARTIES TO AGREEMENT: Client: LandlQuest Client Representative: Brandon RatlifF Address= NA City, State, Zip: NA Phone -1208) 221-4962 E-mail: fandquest@hotmail.aam Appraiser Name: Brian Kirkham, MAI Company: Kirkham Appraisals, Inc. Address: PO Boos 2503 City, State, Zip: Pocatello, I D 83206 Phone: 208-233-4132 E-mail-- kirkhamappraisal0pmail_€am: j_kirkhamappraisal ftmail_aom 24-985 Kirkham Appraisals Inc. Page 85 Client hereby engages App raiserto complete appraisal assignments as follovis: PROPERTY IDENTIFICATION Appraisal 1: A 4.78+f- AC Portion of RPRCCPOD4b401 Appraisal 2-- 2AR +f- AC Tract coma ining RPRCCPO024405 & RPRCCPCO24409 PROPERTY TYPE Commercial INTEREST VALUED Fee Simple INTENDED USERS LandQuest Notes No other risers +are intended by Appraiser. The oppraiser shall consider the intended users when determining the levef of detoii to be provided in the Appraisoi Reporr_ 24-985 Kirkham Appraisals Inc. Page 86 INTENDED USE Decisions by ownership for potential land swa p TYPE OF VALUE Market value as defined by the appraisal requirements pursuantto FIRREA- DATE OF VALUE Cu rrent HYPOTHETICAL CONDITIONS, EXTFLAORDINARY ASSUMPTIONS o d_ APPLICABLE REQUIREMENTS OTHER THAN THE UNIFORM STANDARDS OF PRO FESSICIMAL APP RAJSAL PRACTICE JUSPAP) The Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute ANTICIPATED SCOPE OF WORT{ Site visit Observation of the property. Valuation approaches Sales Comparison Approach Note: Appraiser shall use all approaches nei-essaryto develop a credible opinion of value_ APPRAISAL REPORT Form or format; Narrative 24-985 Kirkham Appraisals Inc. Page 87 CONTACT FOR PROPERTY ACCESS, IF APPLICABLE NA D E LIVERY DATE Four weeks from the date of engagement DELIVERY METHOD E-mail: landquest@hotmail.com NUMBER OF COPIES 1 PDF version PAYMENT The fee of 53,500 is to be collected prior tip completion of the report and can be mailed by the client tip the address provided above_ If the Appraiser is subpoenaed pursuant to court order or required to produce documents by judicial commandr the client agrees to compensate the Appraisers for their appearance time, preparation time, travel time, and document preparation time at 5340 hourly rate then in effect plus expenses and ammeyfees. In the event the real property appraised is, or becomes the subject of litigation, a condemnation, or other legal pro€eedingr it is assu med the Appraiser wil I be given reason bl a advanced notice, a nd reasonable additional tim a for €ou rt preparation. CONFIDEMTIALFFY Appraiser shall not provide a copy of the written Appraisa I Report to or disclose the results of the appraisal prepared in a€€orda n€e with this Agreement with, a ny party other than Client, unless Client a uthor¢esr except as stipulated in the Confidentia lity Section of the ETH ICS RU LE of the Uniform Sta ndards of Professional Appraisal Practice (USPAP)- CHANGES TO AGREEMENT Any changes to the assignment as outlined in this Agreement shall necessitate a new Agreement. The identity of the client, intended users, or intended use; the date of value; type of value; or property appraised €annot be changed without a new Agreement 24-985 Kirkham Appraisals Inc. Page 88 CANCELLATION Client may cancel this Agreement at anytime prior to the delivery of the report upon written notification to the company. Client shall pay Appraiser for work completed on assignment prior to receipt of written cancellation notice, unless otherwise agreed upon by Appraiser and Client in writing_ NO THIRD -PARTY BENEFICIARIES Nothing in this Agreement sha II create a contractua I rel ationship between the A ppraiser or the Cl lent and any third party, or any cause of action in favor of any third party_ This Agreement shall not be construed to render any person or entity a th ird-pa rtyr beneficiary of this Agreement, in€I uding, but not limited to, a ny th ird parties identified herein. USE OF EMPLOYEES OR INDEPENDENT CONTRACTORS Appraiser may use employees or independent contractors at Appraiser's discretion to complete the assignment, unless otherwise agreed by the parties. Notwithstanding, Appraiser shall sign the written Appraisal Report and take full responsibility for the services provided as a result of this agreement. TESTIMONY AT COURT OR OTHER PROCEEDINGS Unless otherwise stated in this Agreement, Client agrees that Analyst's assignment pursuant to this Agreement shall not include the Analyst's participation in or preparation for, whether voluntarily or pursuantio subpoena, any oral or written discovery, swam testimony in a judicial, arbitration or administrative proceeding, or attendance at a ny jud icial, arbitration, or administrative proceeding relating to this assignment_ APPRAISER INDEPENDENCE Appraiser cannot agree to provide a value opinion that is contingent on a predetermined amount. Appraiser €a nnat guarantee the outcome of the assignment in adva nce. Appra icer cannot ensure that the opin ion of value developed as a resu It of this Assignment wil I sense to fall irate a ny specific objective t y Client or others or advance any particular cause. Appraiser's opinion of value will be developed competently and with independence, impartia I ity, and objectivity. EXPIRATION OF AGREEMENT This Agreement is va lid only if s igned by both the Appra iser and Client within 3 days of the Date of Agreement specified. GOVERNING LAW & JURISDICTION The interpretation and enforcement of this Agreement shal I be governed by the laws of the state in which the Analysts princi pa I place of business is located, exclusive of any choice of law rules - 24 -985 Kirkham Appraisals Inc. Page 89 9y Apa«is.ar: {540atul e} 9rfan_I4lrkhan. . (Printed na liq! 0212612024 {date] By Glantz (Signaturs� IPrItAed narne) L, khz� /— (date) 24-985 Kirkham Appraisals Inc. Page 90 Copyright Protection C Copyright 2024 Kirkham Appraisals Inc. Pocatello, Idaho 83206 All Rights Reserved. No part of this document may be reproduced, nor may any portion be incorporated into any information retrieval system without written permission from Kirkham Appraisals Inc., the copyright holder. The descriptions, analyses, and conclusions stated herein are intended for the exclusive use of our client, LandQuest, and other explicitly identified intended users, if any. This report should only be used for the intended use stated herein. Kirkham Appraisals Inc. retains all rights, title, and interests in all trademarks, trade names, trade secrets, data, conclusions, opinions, valuations, and other information included in, arising out of, or in any way related to this appraisal. No person or entity shall be entitled to break down, strip out, mine, or disseminate any component or portion of this report, including, but not limited to any valuations, opinions, data compilations, or conclusions. This report and all its contents are a culmination of intellectual and professional experiences, education, personal investigations, and know-how, which shall at all times remain the property of Kirkham Appraisals Inc., its sole owner. End of Report 24-985 Kirkham Appraisals Inc. Page 91