Market Study Report Prepared

Cooke & Washington Avenue Redevelopment Carteret Borough Middlesex County, New Jersey

MARKET STUDY REPORT

OG. File No. 20060009 55 Lamson Lane Block 801, Lot 55 Logan Township Gloucester County, New Jersey

PREPARED FOR

Mr. John Kainer 50 Lamson Lane, LLC 16 Lehigh Drive Kendall Park, NJ 08824

OTTEAU GROUP VALUATION | CONSULTING | ADVISORY | RESEARCH 800-458-7161 www.otteau.com

New Jersey Office (Mail) New York Office Pennsylvania Office 100 Matawan Road, Suite 320 112 W. 34th Street, 18th Floor 325 - 41 Che stnut Street, Suite 800 Matawan, NJ 07747 Manhattan, NY 10120 Philadelphia, PA 19106

July 2, 2020

Mr. John Kainer 50 Lamson Lane, LLC 16 Lehigh Drive Kendall Park, NJ 08824

RE: OG. File No. 20060009 55 Lamson Lane Block 801, Lot 55 Logan Township Gloucester County, New Jersey

Dear Mr. Kainer:

In accordance with your request, we submit our market study report for the above referenced property in Logan Township. The purpose of the market study is to determine whether the proposed warehouse development will have any adverse effect on the market value of surrounding residential properties. The intended use of the study is to provide consulting services related to a use variance application. It is also anticipated that the Township of Logan may rely upon this study in considering a use variance application.

In developing this study, we have investigated home selling prices in Gloucester County, New Jersey municipalities near to or bordering warehouse development. The results of these analyses were then compared to selling prices of homes that are not bordering or near to warehouse development. Based upon my investigation and analysis, it is my considered opinion that the proposed warehouse development will not have any adverse effect on the market value of surrounding residential properties.

This market study report summarizes the various processes employed in developing our conclusions, the relevant data which formed the basis of our analyses, various exhibits, and documents upon which we have relied and any assumptions upon which our study has been based.

The World Health Organization declared COVID-19 as a world-wide pandemic on January 30, 2020 and the United States declared a national emergency on March 13, 2020. These events have caused accelerated economic contraction, market disruption and increased risk for real estate. The data and analyses that appear in this report reflect market data which precede the above referenced dates. Therefore, this report has not considered potential economic or real estate market impacts resulting from COVID-19. It is our opinion however that the validity of our findings are not changed by recent events.

Respectfully submitted,

Jeffrey G. Otteau, President, American Society of Appraisers, Accredited Senior Appraiser (ASA) National Assoc. of Independent Fee Appraisers, Designated Appraiser (IFA) New Jersey Certified General Real Estate Appraiser, #42RG00094100 New York Certified General Real Estate Appraiser, #46000045325 Pennsylvania Certified General Real Estate Appraiser, #GA003481

Christopher J. Otteau, MAI, AI-GRS Principal New Jersey Certified General Real Estate Appraiser, #42RG00219400 New York Certified General Real Estate Appraiser, #46000049674 Pennsylvania Certified General Real Estate Appraiser, #GA003794

JGO/CJO/td

OTTEAU GROUP VALUATION | CONSULTING | ADVISORY | RESEARCH

Table of Contents

PART I – INTRODUCTION ...... 1 Executive Summary ...... 1 Subject Property Location...... 2 Date of the Study ...... 3 Identification of Property ...... 3 Purpose & Intended Use of the Study ...... 3 Intended User of the Study ...... 3 Scope of Work ...... 3 Ownership & History of Property ...... 4 Tax and Assessment Analysis ...... 5

PART II – PROPERTY DESCRIPTIONS ...... 6 Land Use Regulation...... 6 Neighborhood Analysis ...... 7 Site Analysis ...... 10 Proposed Improvement Analysis ...... 11

PART III – ANALYSES & CONCLUSIONS ...... 13 Paired Sales Analysis Technique ...... 13 Conclusion ...... 16

PART IV – ADDENDUM ...... 17 Limiting Conditions, Assumptions, and Hypothetical Conditions ...... 17 Subject Property Photos ...... 21 Subject Property Survey and Maps ...... 23 About Otteau Group, Inc...... 28

PART I – INTRODUCTION

Executive Summary

Date of Study Report: July 2, 2020

Effective Date of Study: June 15, 2020

Market Data of Study: January 1, 2015 – December 31, 2019

Geographic Study Area: Gloucester County, New Jersey (Logan Township, West Deptford Township, and Deptford Township)

Synopsis: The subject of this market study is identified as Block 801, Lot 55 on the municipal tax map of Logan Township, Gloucester County, New Jersey. The site consists of 27.95-acres of agricultural land that is assessed as qualified farmland. The property is proposed for a 262,500 ft2 warehouse development, which is currently not a permitted use in the zoning district. The purpose of the market study is to determine whether the proposed warehouse development will have any adverse effect on the market value of surrounding residential properties. The intended use of the study is to provide consulting services related to a use variance application. It is also anticipated that the Township of Logan may rely upon this study in considering a use variance application.

Summary of Paired Data Analysis: Our analysis indicates the selling prices of homes located adjacent to warehouse development sell for a similar price as comparable homes compared further away. This can be seen in the average selling price deviation between these properties of only 0.9% (-) on an unadjusted basis, and 0.9% (+) on an adjusted basis. Also significant is that the Target Group all are adjacent to warehouse development compared to the Control Group residential homes, which are an average of 1.8 miles to the nearest warehouse development. These findings indicate there is no adverse effect on home prices resulting from their proximity to warehouse development.

Conclusion: Our investigation has determined that the presence of warehouse development bordering or near to residential homes does not result in a greater discount than homes not near or bordering warehouse development. Based upon my investigation and analysis, it is my considered opinion that the proposed warehouse development will not have any adverse effect on the market value of surrounding residential properties.

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Subject Property Location

Subject

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Date of the Study

The date of this market study report is July 2, 2020, which identifies when the analyses and report were prepared. The effective date of the market study is June 15, 2020, which establishes the context for the analysis in terms of economic, demographic and real estate market conditions.

Identification of Property

The subject of this market study is identified as Block 801, Lot 55 on the municipal tax map of Logan Township, Gloucester County, New Jersey. The site consists of 27.95-acres of agricultural land that is assessed as qualified farmland. The property is proposed for a 262,500 ft2 warehouse development, which is currently not a permitted use in the zoning district.

Purpose & Intended Use of the Study

Intended User of the Study

The intended user of the study is the client, 50 Lamson Lane, LLC. Any reliance upon this report by anyone other than the client is unintended. It is also anticipated that the Township of Logan may rely upon this study in considering a use variance application.

Scope of Work

The client authorized a market study to quantify the effects of a proposed warehouse development on the market value of surrounding residential property. A market study is an orderly procedure by which the study problem is defined, the work necessary to solve the problem is planned and relevant data is acquired, classified, analyzed, interpreted and translated into conclusions. The scope of work employed in developing this analysis included: 1. Scope of Work Determination: Identification of the study area, purpose and intended use of the study. 2. Inspection of the Property: An inspection of the site and surrounding neighborhood area to understand site characteristics, surrounding land uses and neighborhood context. OTTEAU GROUP VALUATION | CONSULTING | ADVISORY | RESEARCH 4

3. Document Review: Reviewed various documents that relate to the subject property and it’s use variance application including but not limited to legal description, deed, survey, site plans, utilities, municipal zoning and the municipal tax map. 4. Research & Verification: Collection of facts information and data points including but not limited to economic conditions, demographic trends, land use controls, existing infrastructure, real estate market data and other pertinent factors which are relevant to the assignment. Data sources include US Census Bureau, Bureau of Labor Statistics, Federal Reserve Bank(s), Environics Analytics, CoStar, Multiple Listing Services, GIS and geographical mapping, municipal zoning ordinances, public records, recorded deeds, various national, local and regional subscribed information services, real estate brokers, property managers, the Internet and records maintained in the files of Otteau Group, Inc. Connor F. Montferrat, SCGREA (NJ, PA, DE), has provided research assistance to the person(s) signing this report. 5. Analysis & Methodology: Identification of real estate transactions for real estate parcels located near to or bordering warehouse development. The initial step in the process was to review and investigate the locational characteristics and land use context. Next, we identified a Target Group of real estate parcels bordering or near to warehouse development that were involved in transactions for home sales. The price metrics of these transactions were then compared to a Control Group of other transactions involving similar properties that were not bordering or near to warehouse development. These transactions occurred between January 1, 2015 – December 31, 2019. Finally, a comparative analysis was prepared to measure the effects or stigma, if any, of the proximity to a warehouse development on their respective home selling prices. Stigma is defined as “an adverse public perception regarding a property, commonly the identification of a property with a condition such as environmental contamination or other detrimental condition, such as a violent crime, that penalizes the marketability of the property and may also result in a diminution in value.”1 6. Reporting: Prepared this market study report which “summarizes” the study process, methodology and conclusions. Additional supporting documentation has been retained in our work file.

Ownership & History of Property

The current fee simple owner of record is Russel Leone. Our investigation has not discovered any additional transfers of title, leases, options or listing agreements or pending purchase contracts for the subject property within the past 3 years other than the above stated.

1 Source: The Dictionary of Real Estate Appraisal, Sixth Edition, published by the Appraisal Institute, page 221. OTTEAU GROUP VALUATION | CONSULTING | ADVISORY | RESEARCH 5

Tax and Assessment Analysis

According to the official records of the Gloucester County Board of Taxation, the subject is legally described as Block 801, Lot 55, Qualifier QFARM, and the current assessed valuation and property taxes are as follows:

2019 Assessments Improvement 2019 EQ Address Block Lot Qual Land Value Total Value Taxes EQ Tax Value Value Tax Rate Ratio Lamson Rd. 801 55 $0 $4,600 $4,600 $2.172 $99.91 97.55% $4,716 Lamson Rd. 801 55 QFARM $17,300 $0 $17,300 $2.172 $375.76 97.55% $17,734 Totals $17,300 $4,600 $21,900 - $475.67 - $22,450 Note: The subject property is classified as farm (qualified) and is partially tax exempt.

Applying the 97.55% Equalization Ratio for the 2020 Tax Year, which was certified as of October 1, 2019, the indicated ‘True Value’ for tax purposes of the subject property is $22,450. These assessments, and implied “True Value” are understated however by the farmland assessment on a portion of the property. Given the scope of work in this assignment does not include developing an estimate of market value for the subject property, no analysis or opinion as to the reasonableness of the assessed valuations have been developed.

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PART II – PROPERTY DESCRIPTIONS

Land Use Regulation

From a zoning perspective, the subject property is governed by the regulations of the IC, Interchange Commercial, zoning district of Logan Township.

IC Permitted Uses: 1. Full-Service Restaurants 2. Drive-Thru Restaurants 3. Office Uses including general business, medical, dental 4. Retail Use at a maximum of 125,000 square feet with 25,000 square feet of outside space 5. Hotel and Hotels/Conference Center 6. Planned Commercial Development (PCD) in accordance with special township regulations set forth in Section 8.A.1. Uses include: a. Fully enclosed restaurants and drinking establishments. b. Banks, drive-in banks c. Office Buildings. d. Health and exercise facilities and/or clubs. e. Day nurseries and/or day care facilities. f. Personal training centers. g. Hotels. h. Recreational facilities, outdoor or indoor.

IC Area, Yard, and Structure Requirements (all uses except PCD): Minimum Lot Size 2.5 Acres (all uses); 3 Acres (Hotel); 5 Acres (Hotel/Conference Center) Minimum Lot Width 300 feet Minimum Frontage 200 feet (all uses); 300 feet (Hotel/Conference Centers) Minimum Front Yard 80 feet Minimum Rear Yard 35 feet (all uses); 25 feet (Hotel/Conference Centers) Minimum Side Yard 20 feet (each side) Maximum Impervious Coverage 65% (all uses); 60% (Hotel/Conference Centers) Maximum Lot Coverage 30% (all uses); 40% (Hotel/Conference Centers) Maximum Building Height 4 stories or 45 feet (all uses) 8 stories or 100 feet (Hotels/Conference Centers)

For a detailed description of the land use controls affecting the subject property, the reader is referred to the zoning regulations of the municipality. The property is current an agricultural use and the applicant, 50 Lamson, LLC is seeking a use variance to permit a warehouse as a permitted principal use, which is the subject of this report.

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Neighborhood Analysis

The subject property is located in the neighborhood of Logan Township known as Repaupo. The neighborhood is generally bound by:

• Northerly Boundary: Repaupo/Asbury Station Road and Still Run Creek • Easterly Boundary: Paulsboro Road/Swedesboro Road • Southerly Boundary: Hendrickson Mill Rd/County Route 671 • Westerly Boundary: Broad Street/State Route (SR) 44

The subject property’s neighborhood area consists of low-density land uses such as industrial uses, agricultural farms, open space, and older single-family homes. The industrial uses include truck leasing, warehouse distribution, storage, and concrete and other material mix suppliers. The Penns Grove Secondary Branch, an operational Conrail freight line runs through the neighborhood, running parallel to Broad St/SR-44. It is approximately 0.6 miles from the subject property. This freight line has track spur lines to the Pureland Industrial Complex and maritime facilities such as the Port of Paulsboro. Pureland Industrial Complex (4 miles southwest) is a 3,000-acre industrial park, with warehouse, manufacturing, and distribution facilities from companies such as Amazon, Mitsubishi, UPS, and Home Depot.

The subject site is directly across the street from the Northbound entrances of U.S. Route 130 and Interstate 295 (1-295) and 0.1 miles away from the Southbound entrances. The site is surrounded by the following land uses: • To the north is Miller’s Used Trucks and Leasing, which has trailer and truck parking for business use. • To the south and east are S&S Auction, Z Brothers Furniture Sales, and South Jersey Auction. The S&S Auction property has a cell tower on the property. All three properties have truck yards and trailer parking for business use. • To the south is preserved farmland, woods, and a residential property. • To the west, and directly across from the site on Lamson Lane, are residential properties that are adjacent to I-295.

Neighborhood appeal is enhanced by its close proximity to these major transportation routes as well as SR-44, U.S. 322, the Commodore Barry Bridge, and the Delaware Memorial Bridge. Based upon the neighborhood’s locational characteristics, the subject property is well suited for warehouse development. The following photos are representative of the subject’s immediate neighborhood:

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View of S&S Auction, I-295 Intersection, and Entrance to Lamson Lane

View of Miller’s Used Trucks and Leasing to the North

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View of Residential Properties Across from Site

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Site Analysis

Subject Property Tax Map

The subject of this report is an irregular shaped property located along Lamson Lane with an overall site area of 27.95-acres, or 1,217,467 ft2. The property is partially improved with a pole barn and consists of agricultural farmland. The site has approximately 1,487 feet of frontage along Lamson Lane. There are no known easements and the site is located within the flood zones X and A2. The rear of the property has a pond and is located within the wetland’s management area. This is due to the Little Timber Creek tributary (of the Delaware River) flowing through the southern portion of the property. The site has utilities available to service the site, which include telephones, electricity by Atlantic City Electric, natural gas by South Jersey Gas, water provided by NJ American Water, and municipal sewerage as it is located within the designated sewer service area. According to the New Jersey Department of Environmental Protection, the site is not a known contaminated site. Overall, the physical size and locational characteristics of the site are well suited to its proposed warehouse development.

2 The subject property maps are located in the rear of this report. OTTEAU GROUP VALUATION | CONSULTING | ADVISORY | RESEARCH 11

Proposed Improvement Analysis

The property is partially improved with a pole barn and consists of agricultural farmland, which is proposed for warehouse development. Current plans consist of a one-story 262,500 ft2 warehouse distribution building, of which 5,250 ft2 will consist of office space. The loading docks, drive-in ramps, as well as the ingress and egress points for the truck traffic will face the woods, cell tower, and Repaupo Station Road. They will be nearest to the entrance of Lamson Lane and will not face the residential properties. Site plans and elevations appear below:

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PART III – ANALYSES & CONCLUSIONS

The purpose of the market study is to determine whether the proposed warehouse development will have any adverse effect on the market value of surrounding residential properties. Market studies involve the gathering and analysis of information regarding consumer attitudes and behavior toward a product or product attribute. When applied to real estate analysis, market studies develop predictive models based upon an analysis of historical facts and circumstances. In this regard, it is widely understood that the value of real estate is directly influenced by its locational attributes. To determine whether the warehouse development will cause an adverse effect on the market value of surrounding residential properties, we have employed the ‘Paired Data Analysis’ or ‘Paired Sales Technique’ which is defined as: “A quantitative technique used to identify and measure adjustments to the sale prices or rents of comparable properties; to apply this technique, sales or rental data on nearly identical properties are analyzed to isolate a single characteristic’s effect on value or rent.” Source: The Dictionary of Real Estate Appraisal, Sixth Edition, published by the Appraisal Institute, page 142

To apply this technique, sales data on similar properties are analyzed to isolate a single characteristic’s effect on value. The strength of this approach is that it is based entirely upon the reactions of direct market participants and thus provides an objective basis for developing conclusions.

Paired Sales Analysis Technique

In developing this study, we began by investigating and analyzing home selling prices in Gloucester County, New Jersey municipalities near to or bordering warehouse development herein referred to as Target Sales as they possess the quality that we are studying. These prices were then compared to the selling prices for similar ‘like-kind’ homes in the same communities which were distant from warehouse development herein referred to as Control Sales. This research was conducted by similarly investigating individual home sales through Multiple Listing Services, Gloucester County Assessment Records, and the New Jersey Association of County Tax Boards. The municipalities which were the subject of these analyses include the following: 1. Logan Township 2. West Deptford Township 3. Deptford Township OTTEAU GROUP VALUATION | CONSULTING | ADVISORY | RESEARCH 14

Next, a comparative analysis of the selling prices of these Target and Control properties was conducted to isolate any effects attributable to these locational qualities. The theoretical basis for this approach is that any differences in selling price between the Target and Control groupings would logically be attributable to differences between the properties.

For example, whereby 2 homes that sold in a given submarket area were identical in all aspects except that one home was directly adjacent to railroad tracks while the other was distant from the tracks and therefore not impacted in terms of view or noise. Under this set of circumstances, any difference in the selling price of the 2 homes would provide an indication of the value differential that is attributable to a being adjacent to the railroad tracks. The application of this logic is however more complex than the example above because the existence of nearly identical home sale pairs is not common. Rather, “like-kind” homes typically possess multiple differences which are collectively attributable to their respective differential in selling price.

To account for such real-world circumstances, our technique will include applying market-based adjustments for any ancillary differences between the Target and Control groupings, but will exclude any adjustment for the warehouse development for the Target properties. In this way, any residual differences in selling price will be attributable to the influence of the proximity of warehouse development.

Following are the analyses that have been developed in our study:

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PAIRED SALES SUMMARY - Single Family Home Selling Prices Target Group Control Group Overall Effect of Adjacent/Near to Warehouse Development Distant from Warehouse Development WH Development Unadjusted Adjusted % %

Number GLA Distance GLA (Ft2 Unadjusted Adjusted # Municipality Address Distance Sale Date Selling Price $ / Ft2 Address of Sale Date Selling Price Delta Delta (Ft2 ) (Miles) ) $/Ft2 $/Ft2 Controls

1 Logan Township 412 Pedricktown Road Adajcent 09/13/16 $ 124,900 1,775 $70 120 Barker Avenue 1 2.5 06/29/16 $ 110,000 1,536 $ 72 $ 69 -2.8% 1.4% 2 West Deptford Township 784 St. James Court Adajcent 06/25/15 $ 255,000 2,054 $124 1068 Barnesdale Road 1 1.0 04/24/15 $ 260,000 2,120 $ 123 $ 125 0.8% -0.8% 3 West Deptford Township 756 Carter Hill Drive Adajcent 12/02/19 $ 303,000 2,054 $148 Multiple Addresses (Avg) 2 0.8 08/19/19 $ 312,000 2,121 $ 148 $ 146 0.3% 1.7% 4 Deptford Township 201 Marion Avenue Adajcent 08/24/18 $ 156,000 1,546 $101 253 Stanford Avenue 1 2.5 07/09/18 $ 138,710 1,348 $ 103 $ 100 -1.9% 1.0% 5 Deptford Township 225 Marion Avenue Adajcent 12/20/19 $ 165,000 1,546 $107 418 Baylor Road 1 2.4 09/13/19 $ 175,000 1,620 $ 108 $ 106 -0.9% 0.9% Averages - 02/21/18 $ 200,780 1,795 $ 110 Averages 1.8 12/06/17 $ 199,142 1,749 $ 111 $ 109 -0.9% 0.9% Medians - 8/24/2018 $ 165,000 1,775 $ 107 Medians 2.4 07/09/18 $ 175,000 1,620 $ 108 $ 106 -0.9% 1.0%

OTTEAU GROUP VALUATION | CONSULTING | ADVISORY | RESEARCH 16 Summary of Paired Data Analysis: Our analysis in the above table indicates the selling prices of homes located adjacent to warehouse development sell for a similar price as comparable homes compared further away. This can be seen in the average selling price deviation between these properties of only 0.9% (-) on an unadjusted basis, and 0.9% (+) on an adjusted basis. Also significant is that the Target Group all are adjacent to warehouse development compared to the Control Group residential homes, which are an average of 1.8 miles to the nearest warehouse development. These findings indicate there is no adverse effect on residential properties resulting from their proximity to warehouse development.

Conclusion

Our investigation has determined that the presence of warehouse development bordering or near to residential homes does not result in a greater discount than homes not near or bordering warehouse development.

Therefore, based upon my investigation and analysis, it is my considered opinion that the proposed warehouse development will not have any adverse effect on the market value of surrounding residential properties.

OTTEAU GROUP VALUATION | CONSULTING | ADVISORY | RESEARCH 17 PART IV – ADDENDUM

Limiting Conditions, Assumptions, and Hypothetical Conditions

The Terms and Conditions herein are part of an agreement for consulting services (the "Agreement'') between Otteau Group, Inc. (OGI) and the client signing this Agreement, and for whom the consulting services will be performed (the "Client"), and shall be deemed a part of such Agreement. The Agreement shall be governed by the laws in the state of New Jersey. All statements in the consulting report that are not historical facts should be considered as forward-looking projections. Although we believe that the expectations reflected in or suggested by such forward-looking projections are reasonable, we can give no assurance that they will be achieved. Known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements expressed or implied by these forward-looking projections to be different from these projections. Such risks, uncertainties and other factors include, but are not limited to, changes in general and local economic and industry and business conditions; adverse weather and other environmental conditions and natural disasters; changes in market conditions; changes in market pricing; government regulation, including regulations concerning development of land, tax laws and the environment; fluctuations in interest rates and the availability of mortgage financing; shortages in and price fluctuations of raw materials and labor; levels of competition; utility shortages and outages or rate fluctuations; changes in tax laws; and geopolitical risks, terrorist acts and other acts of war. The World Health Organization declared COVID-19 as a world-wide pandemic on January 30, 2020 and the United States declared a national emergency on March 13, 2020. These events have caused accelerated economic contraction, market disruption and increased risk for real estate. The data and analyses that appear in this report reflect market data which precede the above referenced dates. Therefore, this report has not considered potential economic or real estate market impacts resulting from COVID-19. It is our opinion however that the validity of our findings are not changed by recent events. We undertake no obligation to update or revise any forward-looking projections, whether because of new information, future events, changed circumstances or any other reason. Projections of prospective selling prices and/or rents provided by OGI herein, if any, do not constitute an appraisal, but rather a consulting assignment consistent with the Scope of Work for this assignment. It has been communicated to the client that we are not acting in the role of appraisers, but instead as consultants. OGI reserves the right to recall this report and make any amendments, corrections, or changes that are deemed necessary. OGI will assume that there are no major or significant items or issues affecting the Property that would require the expertise of a professional building contractor, engineer, or environmental consultant for OGI to prepare a valid report. Client acknowledges that such additional expertise is not covered in the Consulting fee and agrees that, if such additional expertise is required, it shall be provided by others at the discretion and direction of the Client, and solely at Client's additional cost and expense. Estimates for development and construction costs are typically performed by engineers, architects or contractors. While the cost estimates utilized in our analysis have been based upon sources, we believe to be reliable, they are intended to be approximate as a more accurate determination is beyond the scope of this assignment. An appropriately qualified expert should therefore be engaged to produce more detailed cost estimates, with the results being provided to OGI for review and consideration of these impact on the opinions and conclusions set forth in this report. Detailed zoning studies are typically performed by a zoning or land use expert, including attorneys, land use planners, or architects. While our investigation and analysis of land use regulations has considered pertinent issues, this report is not intended to be a detailed determination of compliance, as that determination is beyond the scope of this assignment. An appropriately qualified land use expert should be engaged to determine OTTEAU GROUP VALUATION | CONSULTING | ADVISORY | RESEARCH 18 compliance with zoning standards, with the results being provided to OGI for review and consideration of these impact on the opinions and conclusions set forth in this report. The Freshwater Wetlands Protection Act restricts the use and development of freshwater wetlands. Effective July 1, 1988 the DEP was established as the reviewing and approving authority for all development within or adjacent to freshwater wetlands. This legislation established certain development criteria including, but not limited to, variable buffers around authorized development adjacent to freshwater wetlands. The identification and delineation of freshwater wetlands on the subject property, if any, has not been brought to our attention nor did we become aware of any such delineations during our investigation for this report; however, the consultant(s) is not qualified to render a professional opinion as to the presence or extent of freshwater wetlands. The reader is advised to seek competent, professional advice in identifying any such potential freshwater wetlands since identification and delineation of any freshwater wetlands within the subject boundaries could have significant impact upon conclusions in the consulting report. The subject site may have underground fuel storage tank(s). The underground tank(s) could be a liability. Neither the composition not the condition of the tanks is known to the consultant(s). The typical life expectancy of an underground tank is 15 to 20 years, (federal guidelines suggest a 10-year life span). Soil contamination could occur if a tank leaks and would be costly to clean up. Without a detailed physical inspection of the tanks and the surrounding soil, it is impossible to estimate potential clean-up costs. Therefore, this analysis does not cover such contingencies. All statements of fact in the report which are used as the basis of the OGI’s analyses, opinions, and conclusions will be true and correct to OGI’s actual knowledge and belief. OGI does not make any representation or warranty, express or implied, as to the accuracy or completeness of the information or the condition of the Property furnished to OGI by Client or others. The conclusions and any permitted reliance on and use of the Consulting Report shall be subject to the assumptions, limitations, and qualifying statements contained in the report. OGI shall have no responsibility for legal matters, including zoning, or questions of survey or title, soil or subsoil conditions, engineering, or other similar technical matters. The report will not constitute a survey of the Property analyzed. The consultants have made no survey and the sketches in the report are for illustrative purposes only. The data gathered in the course of the assignment (except data furnished by Client) and the report prepared pursuant to the Agreement are, and will remain, the property of OGI. With respect to data provided by Client, OGI shall not violate the confidential nature of OGI’s-Client relationship by improperly disclosing any proprietary information furnished to OGI. Notwithstanding the foregoing, OGI is authorized by Client to disclose all or any portion of the report and related data as may be required by statute, government regulation, legal process, or judicial decree. Unless specifically noted, in preparing the Consulting Report OGI will not be considering the possible existence of asbestos, PCB transformers, or other toxic, hazardous, or contaminated substances and/or underground storage tanks (collectively, “Hazardous Material”) on or affecting the Property, or the cost of encapsulation or removal thereof. Further, Client represents that there is no major or significant deferred maintenance of the Property that would require the expertise of a professional cost estimator or contractor. If such repairs are needed, the estimates are to be prepared by others, at Client’s discretion and direction, and are not covered as part of the Consulting fee. In the event Client intends to use the Consulting Report in connection with a tax matter, Client acknowledges that OGI provides no warranty, representation or prediction as to the outcome of such tax matter. Client understands and acknowledges that any relevant taxing authority (whether the Internal Revenue Service or any other federal, state or local taxing authority) may disagree with or reject the Consulting Report or otherwise disagree with Client’s tax position, and further understands and acknowledges that the taxing authority may seek to collect additional taxes, interest, penalties or fees from Client beyond what may be suggested by the Consulting Report. Client agrees that OGI shall have no responsibility or liability to Client or any other party for OTTEAU GROUP VALUATION | CONSULTING | ADVISORY | RESEARCH 19 any such taxes, interest, penalties or fees and that Client will not seek damages or other compensation from OGI relating to any such taxes, interest, penalties or fees imposed on Client, or for any attorney’s fees, costs or other expenses relating to Client’s tax matters. OGI shall have no liability with respect to any loss, damage, claim or expense incurred by or asserted against Client arising out of, based upon or resulting from Client's failure to provide accurate or complete information or documentation pertaining to an assignment ordered under or in connection with this Agreement, including Client's failure, or the failure of any of Client's agents, to provide a complete copy of the Consulting Report to any third party. Client shall not disseminate, distribute, publish, make available or otherwise provide any Consulting Report prepared hereunder to any third party (including without limitation, incorporating or referencing the Consulting Report, in whole or in part, in any offering or other material intended for review by other parties) except to (i) any third party expressly acknowledged in a signed writing by OGI as an "Intended User" of the Consulting Report provided that either OGI has received an acceptable release from such third party with respect to such Consulting Report or Client provides acceptable indemnity protections to OGI against any claims resulting from the distribution of the Consulting Report to such third party, (ii) any third party service provider (including rating agencies and Client's auditors) using the Consulting Report in the course of providing services for the sole benefit of Client, or (iii) as required by statute, government regulation, legal process, or judicial decree. In the event OGI consents, in writing, to Client incorporating or referencing the Consulting Report in any offering or other materials intended for review by other parties, Client shall not distribute, file, or otherwise make such materials available to any such parties unless and until Client has provided OGI with complete copies of such materials and OGI has approved all such materials in writing. Client shall not modify any such materials once approved by OGI. In the absence of satisfying the conditions of this paragraph with respect to a party who is not designated as an Intended User, in no event shall the receipt of a Consulting Report by such party extend any right to the party to use and rely on such report, and OGI shall have no liability for such unauthorized use and reliance on any Consulting Report. In the event Client breaches the provisions of this paragraph, Client shall indemnify, defend and hold OGI , and its affiliates and their officers, directors, employees, contractors, agents and other representatives (OGI and each of the foregoing an " Indemnified Party" and collectively the "Indemnified Parties") fully harmless from and against all losses, liabilities, damages and expenses (collectively, "Damages") claimed against, sustained or incurred by any Indemnified Party arising out of or in connection with such breach, regardless of any negligence on the part of any Indemnified Party in preparing the Consulting Report. In the event Client incorporates or references the Consulting Report, in whole or in part, in any offering or other material intended for review by other parties, Client shall indemnify, defend and hold each of the Indemnified Parties harmless from and against any Damages in connection with (i) any transaction contemplated by this Agreement or in connection with the consulting or the engagement of or performance of services by any Indemnified Party hereunder, (ii) any actual or alleged untrue statement of a material fact, or the actual or alleged failure lo stale a material fact necessary to make a statement not misleading in light of the circumstances under which it was made with respect to all information furnished to any Indemnified Party or made available lo a prospective party to a transaction, or (iii) an actual or alleged violation of applicable law by Client (including, without limitation, securities laws) or the negligent or intentional acts or omissions of Client (including the failure to perform any duty imposed by law); and will reimburse each Indemnified Party for all reasonable fees and expenses (including fees and expenses of counsel) (collectively, "Expenses") as incurred in connection with investigating, preparing, pursuing or defending any threatened or pending claim, action, proceeding or investigation (collectively, "Proceedings") arising therefrom, and regardless of whether such Indemnified Party is a formal party to such Proceeding. Client agrees not to enter into any waiver, release or settlement of any Proceeding (whether, or not any Indemnified Party is a formal party to such Proceeding) without the prior written consent of OGI (which consent will not be unreasonably withheld or delayed) unless such waiver, release or settlement includes an unconditional release of each Indemnified Party from all liability arising out of such Proceeding.

OTTEAU GROUP VALUATION | CONSULTING | ADVISORY | RESEARCH 20 Time Period for Legal Action - Unless the time period is shorter under applicable law, OGI and Client agree that any legal action or lawsuit by one party against the other party or its affiliates, officers, directors, employees, contractors, agents, or other representatives, whether based in contract, warranty, indemnity, negligence, strict liability or other tort or otherwise, relating to (a) this Agreement or the Consulting Report, (b) any services or studies under this Agreement or (c) any acts or conduct relating to such services or studies, shall be filed within two (2) years from the date of delivery to Client of the Consulting Report to which the claims or causes of action in the legal action or lawsuit relate. The time-period stated in this section shall not be extended by any incapacity of a party or any delay in the discovery or accrual of the underlying claims, causes of action or damages. Extraordinary Assumptions reflect an assumption, directly related to a specific assignment, which, if found to be false, could alter the appraiser’s opinions or conclusions. Extraordinary assumptions presume as fact otherwise uncertain information about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. This study is not subject to any Extraordinary Assumptions. Hypothetical Conditions reflect an assumption that is contrary to what exists but is supposed for the purpose of analysis. Hypothetical conditions assume conditions contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. This study is not subject to any Hypothetical Conditions.

OTTEAU GROUP VALUATION | CONSULTING | ADVISORY | RESEARCH 21 Subject Property Photos

View of Subject Property and Cell Tower Facing East

View of Subject Property Pole Barn

OTTEAU GROUP VALUATION | CONSULTING | ADVISORY | RESEARCH 22

View of Subject Property

Rear View of Subject Property and Cell Tower Facing East

OTTEAU GROUP VALUATION | CONSULTING | ADVISORY | RESEARCH 23 Subject Property Survey and Maps

Subject Survey

OTTEAU GROUP VALUATION | CONSULTING | ADVISORY | RESEARCH 24

OTTEAU GROUP VALUATION | CONSULTING | ADVISORY | RESEARCH 25 Subject Zoning Map

Source: Township of Logan

OTTEAU GROUP VALUATION | CONSULTING | ADVISORY | RESEARCH 26 Subject Flood Map

OTTEAU GROUP VALUATION | CONSULTING | ADVISORY | RESEARCH 27 Subject Wetlands Map

Source: NJDEP, GeoWeb

OTTEAU GROUP VALUATION | CONSULTING | ADVISORY | RESEARCH 28 About Otteau Group, Inc.

Otteau Group is a multi-discipline real estate appraisal and advisory firm providing services to a wide range of public and private clients. Our mission is to assist our clients in keeping pace with emerging trends in real estate through insightful analysis and cutting-edge pricing skills.

Appraisal Services are provided to financial & lending institutions, developers & builders, attorneys, investors, relocation management service companies, governmental agencies, corporations and the public. Our Consulting Group provides a wide array of services with respect to market analysis, project feasibility, redevelopment planning, project valuation and municipal entitlement proceedings. Litigation support is provided for matters requiring the valuation and corresponding expert testimony for eminent domain proceedings, contractual disputes, bankruptcy, tax appeals, equitable distribution, estate valuation and stigma related issues. OTTEAU.com offers a wide range of content and analysis on real estate trends including live-session lectures and our MarketTRAC and MarketCAST subscription packages.

Jeffrey Otteau, ASA, IFA

Mr. Otteau has been engaged in real estate consultation and valuation since 1974 and holds the State Certified General Real Estate Appraiser certification, the highest level offered. He is also a Senior Accredited Member of the American Society of Appraisers (ASA). Jeffrey has been qualified as an expert in State and Federal Court and at hundreds of municipal and county proceedings, authored several texts on property valuation techniques and has lectured throughout North America. He was a past member of the Appraisal Standards Advisory Council, which consulted with the Appraisal Foundation in Washington, D.C. on its agenda of projects and major technical issues.

He has been recognized as one of the most influential people in the real estate industry by NJBIZ for the past 7 years and was named by ROI NJ as one of the Top-10 Real Estate Professionals in 2017 and 2018. He is frequently quoted in the New York Times and Wall Street Journal, and has made television appearances on CNBC, Bloomberg, Fox 5 News and NBC.

Christopher Otteau, MAI, AI-GRS

As Chief Appraiser at Otteau Group, Christopher has been engaged in real estate valuation, consultation and advisory for 20 years, is qualified as a real estate expert by Superior Courts, State Courts, Federal Court, Zoning Boards, Planning Boards and other various authorities. Further he is widely recognized as a top real estate adviser to developers, investors and private equity funds in performing market/feasibility studies and projecting returns for proposed projects across the country.

Christopher currently serves as an Adjunct Professor at Monmouth University in Real Estate & Analysis and Real Estate Development, is a Rutgers University graduate, holds the State Certified General Real Estate Appraiser license, holds the MAI and AI-GRS Designation from the Appraisal Institute and has obtained a Graduate Certificate in Hotel Real Estate Investments and Asset Management from Cornell University. He is the current Vice President of the Appraisal Institute Metro Chapter and the 2021 President-Elect.

OTTEAU GROUP VALUATION | CONSULTING | ADVISORY | RESEARCH