LOWER PONTALBA BUILDING REAL ESTATE COUNSELING MARKET RENTAL STUDY- 28 APARTMENT UNITS 503, 509, 511, 515, 519, 527, 531, 535, 539, 541, AND 543 ST. ANN STREET 806 AND 810 CHARTRES STREET AND 807 AND 811 DECATUR STREET NEW ORLEANS, LOUISIANA

PREPARED FOR SAM RYKELS, DIRECTOR LOUISIANA STATE MUSEUM 751 CHARTRES STREET NEW ORLEANS, LOUISIANA

APPRAISER GAYLE H. BOUDOUSQUIE, MAI LOUISIANA CERTIFIED GENERAL REAL ESTATE APPRAISER, LICENSE NO. G0125 AND BONNIE R. CURRY LOUISIANA CERTIFIED GENERAL REAL ESTATE APPRAISER LICENSE NO. G1023

AS OF APRIL 13, 2010

2010 Rent Study lower Pontalba.doc 1 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Gayle Boudousquie & Associates 228 St. Charles Ave. Suite 1331 New Orleans, LA. 70130

(504) 525-5700 Fax (504) 525-5705 Cell (504) 495-2772 E-mail [email protected]

May 19, 2010

Mr. Sam Rykels, Director Louisiana State Museum 751 Chartres Street New Orleans, Louisiana 70116

Our File No. Lower Pontalba 2010

Re: Real Estate Counseling Market Rent Study Lower Pontalba Building 503-543 St. Ann Street 806-810 Chartres Street 807-811 Decatur Street New Orleans, Louisiana

Dear Mr. Rykels:

In accordance with your letter of instruction, we have physically inspected the above referenced property, and analyzed data relevant to the estimation of current market rent as defined in the body of this report for each of the 28 individual units.

The assignment is to determine the current market rent for 28 separate apartment units on the 2nd and 3rd floors of the Lower Pontalba Apartments. The Lower Pontalba (owned by the State of Louisiana) and the Upper Pontalba (owned by the city of New Orleans, directly on the other side of Jackson Square), are believed to be the first commercially rented apartment buildings in the United States. The apartment units in the Lower Pontalba range in size from 1,200 to 1,530 square feet. In the French Quarter usage is based on number of rooms rather than number of bedrooms. The condition of the units ranges from average to excellent. There are two townhouse units fronting St. Ann Street, both in excellent condition. One unit is held vacant and is utilized by the “State Museum” as a complementary unit for overnight museum guests.. An individual analysis will be performed for each unit projecting a market rent and will include a floor plan and photo.

Based upon the analysis and conclusions presented in the body of the report, as well as current economic conditions, it is our opinion the current market rent for the units ranges from $1.15 per square foot to $1.90 per square foot. A complete unit-by-unit analysis is contained within the report.

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Sam Rykels Page 2

The effective date of the rental study is April 13, 2010. Units were inspected between April 8, 2010 and April 13, 2010. Following are the projected rents for each apartment: Lower Pontalba

Condition/ Projected Projected Unit # Size Current Current Tenant Quality Unit Rent Rent Total Rent Rent/SF (R)

St. Ann 1- 503-2 1,530 $2,202 $1.44 Exc/Good $1.75 $2,675 2- 503-3 1,530 $1,977 $1.29 Good/Avg. $1.60 $2,450 3- 509-T 1,200 $1,930 $1.61 Excl./Excl. $1.90 $2,280 4- 511-2 1,450 $1,920 $1.32 Avg./Fair $1.20 $1,740 5- 511-3 1,450 $2,095 $1.44 Avg/Avg. $1.26 $1,825 6- 515-2 1,450 $1,920 $1.32 Avg/Fair $1.20 $1,740 7- 515-3 1,450 $2,095 $1.44 Avg/Good $1.32 $1,900 8- 519-2 1,450 $2,070 $1.43 Avg/Avg. $1.25 $1,815 9- 519-3 1,450 $1,845 $1.27 Good/Good $1.70 $2,465 10- 527-2 1,450 $2,070 $1.43 Avg/Avg. $1.30 $1,885 11- 527-3 1,450 $2,095 $1.44 Good/Good $1.70 $2,465 12- 531-2 1,450 $2,070 $1.43 Excl./Excl. $1.80 $2,600 13- 531-3 1,450 $2,045 $1.41 Avg/Avg. $1.20 $1,740 14- 535-2 1,450 $1,970 $1.36 Good/Avg. $1.60 $2,320 15- 535-3 1,450 $1,845 $1.27 Avg./Fair $1.15 $1,670 16- 539-2 1,450 $2,095 $1.44 Good/Avg. $1.65 $2,390 17- 539-3 1,450 $2,070 $1.43 Good/Avg. $1.60 $2,320 18- 541-t 1,200 $2,080 $1.73 Excl./Excl. $1.90 $2,280 19- 543-2 1,530 $2,177 $1.42 Good/Avg. $1.70 $2,600 20- 543-3 1,530 $2,052 $1.34 Good/Good $1.65 $2,525 Chartres 21- 806-2 1,200 N/A N/A Museum Good/Avg. $1.60 $1,920 22- 806-3 1,200 $1,730 $1.44 Avg./Avg. $1.20 $1,440 23- 810-2 1,200 $1,905 $1.59 Good/Avg. $1.60 $1,920 24- 810-3 1,200 $1,730 $1.44 Good/Avg. $1.55 $1,860 Decatur 25- 807-2 1,200 $1,905 $1.59 Good/Avg. $1.60 $1,920 26- 807-3 1,200 $1,730 $1.44 Vacant Avg./Avg. $1.20 $1,440 27- 811-2 1,200 $1,850 $1.54 Good/Avg. $1.65 $1,980

2010 Rent Study lower Pontalba.doc 3 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

28- 811-3 1,200 $1,730 $1.44 Good/Avg. $1.55 $1,860

Sam Rykels Page 3

We hereby certify that we have no present or future contemplated interest in the subject property or any related third party interest in this property.

This letter of transmittal only serves to report the final value estimate conclusion reached in the report, which follows, and must not be misconstrued to represent a complete appraisal in and of itself. This report is subject to the assumptions and limiting conditions as stated herein. We sincerely hope this report serves the needs of Louisiana State Museum adequately. If there are any questions or if we may be of further service, please feel free to call.

Respectfully submitted,

Gayle H. Boudousquie, MAI Bonnie R. Curry Louisiana Certified General Louisiana Certified General Real Estate Appraiser License, No. G0125 Real Estate License No. G1023

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CONSULTING CERTIFICATION

We certify that, to the best of our knowledge and belief . . .

- the statements of fact contained in this report are true and correct. - the reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and is our personal, unbiased professional analyses, opinions, and conclusions. - We have no present or perspective interest in the property that is the subject of this report, and we have no personal interest or bias with respect to the parties involved. - our compensation is not contingent on an action or event resulting from the analyses, opinions, or conclusions in, or the use of, this report. - the analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics of which the undersigned is a member of The Appraisal Institute. - the analyses, opinions, and conclusions were developed and this report prepared in conformity with the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation and the Louisiana Certified Real Estate Appraisers Law. - the use of this report is subject to the requirements of the appraisal organizations of which the appraiser is a member relating to review by its duly authorized representatives. - We have made a personal inspection of the property that is the subject of this report. We have made an exterior inspection of the comparables that are used in this report. - no one other than associates in this office or outside consultants as noted provided significant professional assistance in the preparation of this report. - the consulting assignment was not based on a requested minimum valuation, or specific valuation or the approval of a loan. - the undersigned designated appraisers have completed the requirements under the continuing education program of the appraisal organizations for which he is a member. - We have completed previous consulting assignments of similar type properties.

______GAYLE H. BOUDOUSQUIE, MAI BONNIE R. CURRY LOUISIANA CERTIFIED GENERAL LOUISIANA CERTIFIED GENERAL REAL ESTATE APPRAISER LICENSE No. G-0125 REAL ESTATE APPRAISER LICENSE NO. G1023

2010 Rent Study lower Pontalba.doc 5 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

QUALIFICATIONS OF THE APPRAISER/CONSULTANT

APPRAISER: GAYLE H. BOUDOUSQUIE, MAI LOUISIANA CERTIFIED GENERAL REAL ESTATE APPRAISER LICENSE NO. G0125

BUSINESS ADDRESS: 228 St. Charles Ave. Suite 1331 New Orleans, LA 70130

BUSINESS TELEPHONE: (504) 525-5700 FAX (504) 525-5705 CELL (504) 495-2772 e-mail [email protected]

EDUCATION

Master of Business Administration, Concentration in Economics, Finance, and Management, University of New Orleans Bachelor of Science in Economics, Statistics Minor, Louisiana State University in New Orleans

REAL ESTATE EDUCATION

Various College Level Commercial Real Estate Courses in Financing and Investment Decisions. The American Institute of Real Estate Appraisers, Courses 1A-1, 1A- 2, 1B-A, 1B-B, 2-1, 2-2, and Standards of Professional Practice

Seminars Include: Market Analysis Appraising Non-Profit Properties Hazardous Materials Institute Contemporary Appraisal Practice Real Estate Risk Analysis Understanding Limited Appraisals Subdivision Analysis The New URAR Form Business Valuation Future of Appraising The Appraiser’s Legal Liability The Internet and Appraisal Standards of Professional Practice 2009 Louisiana Real Estate Commission Developments in Income Property Attacking & Defending Appraisals Valuation - 2001 in Litigation - 1999 Tax Laws - 2001 Attacking & Defending Appraisals Partial Interests - Divided 2000 Part II - 2000 Easement Valuation - 2000 Valuation of Partial Interests Analyzing Commercial Lease Clauses - 2002 in Real Estate - 2003

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QUALIFICATIONS OF THE APPRAISER – GAYLE H. BOUDOUSQUIE, MAI – Page 2

DOTD Policies and Procedures - 2003 Appraisal Institute Course 540 – 2003 Appraisal Institute Course 420 – 2004 Valuation of Detrimental Conditions in Real Estate - 12/05 Uniform Appraisal Standards for Federal Land Acquisitions: 12/2006 Scope of Work – 2007 Forecasting Revenue 2007 Valuation of Office Buildings 2008 Analyzing Distressed Real Estate 2008 Spot Light on USPAP 2008 Confidentiality and Hypothetical Conditions Course 901 IRWA Engineering Plan Development and Application 2008 Appraising Historic Preservation Easements Course 805 Appraisal Institute 2009 Appraising Distressed Commercial Real Estate Appraisal Institute 2009 Form 1004MC- Appraisal Institute 2009

PROFESSIONAL EXPERIENCE

Real Estate Valuation and Consulting

1995 - Present Gayle H. Boudousquie and Associates (Owner) Commercial Real Estate and Counseling firm 1992 - 1995 Vice President, Stephen L. Guice & Co., Inc., Real Estate Brokers, Appraisers, and Counselors 1983 - 1991 Vice President, Dupree, Felts and Young, Inc. (Real Estate Appraisers, Analysts, and Counselors with Offices in New Orleans and Shreveport) 1991 - Present Independent Fee Appraisal Review Service to Lending Institutions and Government Agencies. Currently consultant to Orleans Parish for real estate tax appeals. Real Estate Brokerage experience in evaluating and selling investment properties and in commercial leasing since 1975 TTeachingeaching EExperiencexperience

1993 - Present Instructor - Tulane University – School of Continuing Studies . Real Estate Principles and Practice. UREL 232-01 and Advanced Real Estate Principles UREL 332-01 Real Estate Instructor Certified by the Louisiana Real Estate Commission, Certificate No. 659 Seminar given April, 2006 to the Real Estate Tax Commission Appraisers “Valuation of

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QUALIFICATIONS OF THE APPRAISER – GAYLE H. BOUDOUSQUIE, MAI – Page 3

Property After a Natural Disaster- The Randall Bell Matrix” Appraisal Institute Approved.

SCOPE OF ASSIGNMENTS

Market value analysis for apartment complexes, motels, hotels, office buildings, warehouses, industrial, railroad right-of-ways shopping centers, medical clinics, residential and office condominiums, land at highest and best use, eminent domain, unimproved acreage, mixed-use developments, subdivision analysis, feasibility studies, special purpose property, valuation of property affected by hazardous materials. Expert witness testimony, review of market and fair value appraisals. Real estate counseling problems.

Consultant to the New Orleans Board of Review for over 350 Commercial Assessment Appeals for the Tax year 2008. Consultant 2009, State Tax Commission.

LITIGATION ASSIGNMENTS:

Includes Eminent Domain in the Parish of Orleans for the Sewerage and Water Board., Parish of St. Tammany for the Department of Transportation and Development and private clients, Parish of Jefferson, and in Ascension Parish against the Ascension Parish Drainage District for a private client. Please call for more specific details. Most current assignments include Lake Pontchartrain, Louisiana and vicinity Hurricane Protection Project Orleans Parish, Louisiana Orleans East Bank 17th Street Canal Levee System Hurricane Protection Project Algiers Outfall Canal Plaquemines Parish and U. S. Minerals to Boomtown Casino Jefferson Parish.

PROFESSIONAL AFFILIATIONS Louisiana Real Estate Appraisers State Board of Certification – Member 2003- present Appraisal Institute (formerly American Institute of Real Estate Appraisers (MAI), Certificate No. 8304 Regional Ethics and Counseling Panel 1990-1996 Non-Residential Demonstration Report Grader Panel 1990-Present Louisiana State Government Relations Subcommittee 1992-1993 Review & Counseling Division - Assistant Regional Member 1993 - 1995 General Guidance Subcommittee Region IX 1995-1998 General Demonstration Report Subcommittee, Region IX, 1998 - 2003 National Screener – Admissions, 1999 – Present Admissions Chair, Louisiana Chapter- General –2002 National Experience Panel – 2005 National Demonstration Report Panel - 2005

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QUALIFICATIONS OF THE APPRAISER – GAYLE H. BOUDOUSQUIE, MAI – Page 4

DISADVANTAGED BUSINESS CERTIFICATIONS

Louisiana Department of Transportation and Development

CLIENTS INCLUDE Bank One Omni Bank Barclays Bank International, Ltd. Parish of Jefferson Board of Review – Orleans Parish Parish of Orleans Baldwin and Haspel Parish of St. Tammany DRG Financial Corporation Prudential Realty Group E. I. DuPont de Nemours, Inc. Regions Bank Federal Deposit Insurance Corporation Sewerage & Water Board New Orleans Federal Reserve Bank of Atlanta Salmen Company Corps of Engineers Scottsdale Insurance Company GMAC Mortgage G. T. S. Corporation CN/Illinois Railroad Stachan Shipping Company Gulf Coast Bank & Trust The Center Companies Capital One/Hibernia National Bank Touro Infirmary GCR & Associates. Whitney National Bank InerFirst Bank, Dallas Williams, Inc. Louisiana Dept. of Transportation & Devel. Wink Engineering Manufacturers Hanover Norfolk & Southern Railroad Many and LoCoco Aviation Board Department of HUD Dutell and Tranchina

References provided upon request

2010 Rent Study lower Pontalba.doc 9 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

QUALIFICATIONS OF THE ASSOCIATE APPRAISER .

APPRAISER: BONNIE R. CURRY, ASSOCIATE APPRAISER Louisiana Certified General Real Estate License No. G1023

BUSINESS ADDRESS: 228 St. Charles Ave. Suite 1331 New Orleans, LA 70130

BUSINESS TELEPHONE: (504) 525-5700 FAX (504) 525-5705

EDUCATION

University of New Orleans – Business Administration

REAL ESTATE EDUCATION

1. The Appraisal of Real Estate – Tulane University 2. Commercial Real Estate Investment and Taxation – National Association of Real Estate

Appraisal Institute:

Course 110 – Appraisal Principles Course 120 – Basic Valuation Procedures Course 410 – Standards of Professional Practice – Part A Course 420 – Standards of Professional Practice – Part B Advanced Income Capitalization Techniques Advanced Case Studies 2000 – Standards of Professional Appraisal Practice Part A & B 2003 Standards of Professional Appraisal Practice Information Technology, 12/2001 Analyzing Market Value, Investment Timing: Option Value, 7/2003 Appraising from Plans & Specifications 12/2003 Fair Housing 12/2003 Analyzing Operating Statements 4/2004 Forecasting Revenues Residential Property Construction and Inspection 5/2004 Ethics in Real Estate 12/06 Scope of the Appraisal 1/07 Internet Tools for Appraisers 2/07 Condemnation and Eminent Domain 4/08 Real Estate Statistics and Valuation Modeling 12/2008

2010 Rent Study lower Pontalba.doc 10 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

QUALIFICATIONS OF THE ASSOCIATE APPRAISER – PAGE 2 REAL ESTATE EXPERIENCE

Apartment Appraisal 2009 Real Estate Investments 2009 Sales and Income Approach 2010

SEMINARS ATTENDED 1994 Real Estate Tax & Investment Strategies – Loyola University Various Real Estate Seminars

2005 Gayle H. Boudousquie & Associates, Associate Appraiser

3/1997 Stephen L. Guice & Co., Inc., Real Estate Brokers, Appraisers and Counselors – Associate Appraiser 1992-1997 1992-1998 Dupree, Felts & Young, Inc. (Real Estate Appraisers, Analysts, & Counselors with offices in New Orleans and Shreveport) – Associate Appraiser

1988 – 1992 Prudential Properties – Associate Broker

1986 – 1988 Curry Properties – Real Estate Sales, Management, & Leasing

1985 Licensed Real Estate Broker 1978 Licensed Real Estate Agent

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ASSUMPTIONS AND LIMITING CONDITIONS

An oral or written report, counseling letter or any assignment in which an indication of value is rendered is considered an APPRAISAL. The appraisal assignment is subject to the following assumptions and limiting conditions.

This consulting assignment has been made with the following general assumptions.

1. The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy.

2. The illustrative material in the report is included only to assist the reader in visualizing the property and should not be construed as exact.

3. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless noncompliance is stated, defined, and considered in the appraisal report.

4. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless nonconformity has been stated, defined, and considered in the appraisal report.

5. It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based.

6. It is assumed that the utilization of the land and improvements is within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report.

7. The quality of on site management can have a direct effect on the property's economic viability and market value. The financial forecasts contained in this assignment assume both responsible ownership and competent management.

8. All estimates, projections and forecasts contained in this assignment are based upon an evaluation of the present general level of the economy in the area. This does not take into account nor make provision for the effect of any sharp rise or decline in the local or general economic conditions. All estimates, projections and forecasts contained in this report are considered to be reasonable probabilities but are in no manner guaranteed, and we assume no liability for any deviation in the estimates, projections and forecasts.

9. Unless otherwise stated in this report, the existence of hazardous substances, including without limitation asbestos, polychlorinated biphenyls, petroleum leakage, or agricultural chemicals, which may or may not be present on the property, or other environmental conditions, were not called to the attention of nor did the appraiser become aware of such during the appraiser's inspection. The appraiser has no knowledge of the existence of such materials on or in the property unless otherwise stated. The appraiser, however, is

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not qualified to test such substances or conditions. If the presence of such substances, such as asbestos, urea formaldehyde, foam insulation, or other hazardous substances or environmental conditions, may affect the value of the property, the value estimated is predicated on the assumption that there is no such condition on or in the property or in such proximity thereto that it would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in the field of environmental impacts upon real estate if so desired.

This appraisal report has been made with the following general limiting conditions:

1. Possession of this report, or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed without the written consent of the appraiser.

2. The appraisers herein by reason of this report are not required to give further consultation, testimony, or be in attendance in court with reference to the property in question unless arrangements have been previously made.

3. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraiser, or the firm with which the appraiser is connected) shall be disseminated to the public through advertising, public relations, news, sales, or other media without the prior written consent and approval of the appraiser.

4. The appraisers reserve the right to change and revise valuation in this assignment if any undisclosed information or errors come to their attention at a later date.

5. The appraisers'/consultants' responsibility is limited to the client, and use of this appraisal by third parties shall be solely at the risk of the client and/or third parties.

6. Acceptance of and use of the report constitutes acceptance of all assumptions and the above conditions.

2010 Rent Study lower Pontalba.doc 13 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

SUMMARY OF SALIENT FACTS AND CONCLUSIONS

Address of Subject: 503-543 St. Ann Street, 806-810 Chartres Street, and 807-811 Decatur Street New Orleans, LA

Date of Report: May 19, 2010 Type of Report: Residential Rent Survey to set a market Rent for 28 residential units.

Zoning: VCC-1, Vieux Carre Commercial District

Property Type: Historic Multi Unit Apartment Building

Improvements: 28 apartment units located on the 2nd and 3rd floor of the historic Lower Pontalba Building.

Market Rental: $1.15 to $1.90 per square foot and $1,440 to $2,675 per month per apartment. Please see individual unit market rental estimate.

Appraisers: Gayle H. Boudousquie, MAI Louisiana Certified General Real Estate Appraiser License, No.G0125 and Bonnie R. Curry Louisiana Certified General Real Estate Appraiser License No. G1023

2010 Rent Study lower Pontalba.doc 14 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

MARKET RENT DEFINITION:

Market rent is defined as follows:

“The“ rental income that a property would most probably command in an open market..1

PURPOSE AND INTENDED USE OF THE REPORT:

This consulting assignment has been prepared at the request of the client, the Louisiana State Museum. The appraisers have been instructed to determine the market rent for 28 individual apartment units in the Lower Pontalba building. The report will be used to set a rental for new leases and leases coming up for renewal.

EFFECTIVE DATE: April 13, 2010. Date of unit inspections April 8, 2010, April 9, 2010, and April 13, 2010

DATE OF REPORT: May 19, 2010

SCOPE OF THE APPRAISAL

The appraisers have done the following:

• Inspected the interior of 27 of the 28 apartment units. The tenant denied access to one unit.

• Photographs were taken.

• Researched the apartment market in the French Quarter over the last three years.

• Researched comparable rental units, and chose the most comparable for each category of unit (average, good, and excellent).

• Each unit has an individual analysis of market rent. Units in excellent condition with substantial renovation paid for by the tenant have a market rent for the unit based on inspection and as in reported condition prior to the renovation.

1 The Dictionary of Real Estate Appraisal, Appraisal Institute, Fourth Edition, page 177. 2010 Rent Study lower Pontalba.doc 15 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

IDENTIFICATION OF THE SUBJECT PROPERTY

The subject is a multi unit building containing 14 commercial units on the first floor and of 28 apartment units on the second and third floor of the Lower Pontalba Building. The property is identified as being Lot 1 in Square 23, fronting on St. Ann, Chartres, and Decatur Streets in the Second District of the Parish of Orleans.

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NEIGHBORHOOD DESCRIPTION

The subject property is situated in the French Quarter or Vieux Carre of the City of New Orleans.

The Vieux Carre includes all of the land within the boundaries of the original city laid out in 1722 as the capital of France's new empire in America. Within this area of about one hundred squares, people of many diverse backgrounds have lived together to create a rich social and physical heritage over a period of over 250 years.

Vieux Carre is a special place in many ways - historically, architecturally, culturally, and economically. It is the showcase of jazz, a residential area, and a specialty shopping district, a center for arts and crafts, an entertainment complex, and a cultural focus of national importance. Situated adjacent to the Central Business District, it has both enhanced the vitality of that area and felt development pressures from it. It is both an area of great history and an area of constant change.

Within the Vieux Carre, numerous art galleries, antique shops, and specialty shops can be found. Royal Street, a pedestrian walkway during daylight hours, is a favorite of many tourists, especially those shopping for fine antiques. Bourbon Street is the center of entertainment within the Vieux Carre. There are many nightclubs and world-famous restaurants throughout the French Quarter. The French Quarter has historically and continues to offer the largest concentration of restaurants in the City. These restaurants cater to both the tourists and locals offering everything from small coffeehouses, local neighborhood cafes, ethnic specialty restaurants, bistros, and delis as well as numerous large restaurants offering seafood and Creole cuisine.

The French Quarter's boundaries are defined as beginning with the northern one-half of all squares of land bounded by Canal and Iberville Streets. The area then extends along the eastern side of North Rampart Street to the southern side of Esplanade Avenue. Its eastern boundary is the meandering of the Mississippi River between these two points.

The neighborhood is accessible via numerous major and minor traffic arteries. Elysian Fields Avenue, Esplanade Avenue and Canal Street are the major north/south traffic routes. An I-10 Interstate ramp is located on Orleans Avenue approximately one-half mile north of the neighborhood.

The primary commercial area begins between Canal and Iberville, and extends to a point just north of St. Peter Street. This section of the Quarter contains world famous Bourbon Street, noted for its night life, along with Burgundy, Dauphine, and Chartres are renowned for their quaint hotels, motels and guest houses. Royal Street, for the past two centuries, has been the focal point of antique buying and selling. Many of the most famous antique galleries in the country are located along a five-block stretch of this historic old street.

Decatur Street, a bounding street of the French Market Complex, has become and continues to develop into a highly concentrated tourist attraction. Since the development of Jax Brewery and the completion of its expansion phases, Decatur Street has become a major attraction in the French Quarter, catering largely to the tourist-oriented retail shopping market. Decatur Street is also becoming a major secondary area for French Quarter nightlife with the opening of Hard Rock Café in the Jax Brewery, the House of Blues near the southern end of Decatur Street, and Coyote Ugly

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along North Peters Street. This area, the 200-300 blocks of North Peters and Decatur, was rezoned VCE in 1992 to allow live entertainment.

Jackson Square, which the subject overlooks, and the French Market are key points of interest to the tourists visiting the Vieux Carre. Jackson Square is an open park (one block square), which is surrounded on three sides by historically significant buildings: the Cabildo (which has recently been restored after being partially destroyed by a fire in 1988), the Presbytere, the St. Louis Cathedral, and the Upper and Lower Pontalba Buildings. These buildings form the nucleus of the original French settlement. Today, the Cabildo and the Presbytere are state-owned Louisiana history museums and the St. Louis Cathedral is one of the most well known Catholic churches in the world. The Pontalba Buildings continue to be used as apartments with the first floor devoted to retail and commercial uses including several gift shops and restaurants.

Located along the Mississippi is the French Market Place, the original founding place of New Orleans. To this day, goods are still bartered and sold in this area with the only exception being that their transportation is now motorized rather than horse drawn wagons. It is not unusual then to find such developments as the Jackson Square, the Pontalba Apartments, St Louis Cathedral, the Presbytere, the Cabildo and several other old and well-known properties in this historic area.

Pre-Katrina the tourism industry had several banner years for tourism. U. S. travelers seemed more interested than ever in New Orleans. Zagat and Conde Nast surveys ranked the city 5th and 6th top tourist destination in America. In the aftermath of September 11th. New Orleans initially lost a tremendous amount of tourist business, as did everyone in the country. People needed the security of home and air travel was not considered safe mode of travel. New Orleans, however, had higher than average occupancy overall than other tourist destinations even with the never-ending inventory of new rooms coming on line. There was continued growth in this sector for the New Orleans area with the number of hotel rooms rising from 31,388 in year 2000 to an estimated 38,238 in 2005 – pre Katrina.

With the scarcity of land in the Vieux Carre`, recent development has been located along the Mississippi Riverfront. Wharves formerly used for loading and unloading vessels have been demolished to make room for projects such as Woldenberg Park and the Aquarium of the Americas. The Riverwalk, a large retail mall situated on the site of the 1984 World's Fair, is the connecting link between the New Orleans Convention Center and the Riverwalk, the Aquarium of the America’s, the Insectarium and the shops at Canal Place. Development along the Riverfront continues with the Riverfront Development project.

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Post Katrina and Economic Crisis

The jewel of the city is the French Quarter, which faired virtually unscathed in Katrina. The French Quarter requires a healthy tourist base, which has been severely affected by not only the storms but also the current economic crises. Restaurants, retail outlets and clubs are suffering setbacks. On a positive note, New Orleans’ bypassed the sub-prime mortgage crises and unemployment increased by only 1.9% for the first quarter of 2009. New Orleans was among cities with rising wages.

The tourism industry was off to a strong start with Marti Gras 2009 attendance reported by UNO of 1 million, Jazz Fest set records with top stars such as Tony Bennett and Bon Jovi, the Essence Fest has attendance of 25,000+/- and the Evangeline Lutheran Church event bringing in 42,000 mostly youths to town to help rebuild. The economic crises again negatively affected the country, state, city and the tourism sector. People have less expendable income than they used to and unemployment has risen since the sub-mortgage started the downward economic spiral.

The most significant change in the city is the success of the New Orleans Saints, beginning with their winning season, the division championship held in New Orleans and the Super Bowl having as much of an economic impact in New Orleans as in Miami. The city is in a state of Euphoria as we enter the 2010 Mardi Gras season. The French Quarter has been handed a life- line after being in the red post Katrina. The city has been on display nationally and citizens around the country have latched onto the excitement. The euphoria has tremendously affected unity within the city.

The Super Bowl has over shadowed the 1st ballot mayoral victory of Mitch Landrieu. The city is very positive about forward progress within the city.

It is too early to make positive or negative statements about the CBD and French Quarter. Restaurants are busy and families are seen walking in the Quarter. There is a frenzy of activity in the city, especially in the French Quarter where everyone gathers to celebrate. The commercial market was improving until affects from the current economic crisis stymied the forward motion – but now everyone is positive and happy about life at this moment in time.

In summary, Louisiana continues to struggle as it recovers from Hurricane Katrina, Gustave and Ike and the economic crisis. The message sent to the world is that the city is world class, has a world class football team and is open for business. The economic crisis is serious and there is no way to predict the overall outcome or the duration.

2010 Rent Study lower Pontalba.doc 19 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

DESCRIPTION OF THE IMPROVEMENTS

The subject consists of twenty-eight separate apartments on the second and third floors of the historic Lower Pontalba Building. The subject building was originally built as sixteen row houses with commercial space on the ground floor and a three-story townhouse above. Baroness Michaela Almonester de Pontalba built the subject building in 1849-51. The building represents one of the first American uses of industrially produced and nationally and internationally distributed building materials such as New England granite, Baltimore pressed brick, English plate glass, English slates and roofing tiles and New York ornamental iron and flagging.

Following is a description of the construction features:

Construction Features

Foundation: Foundation plans were not available to the appraisers. The building is assumed constructed on a chain wall/spread footing with a concrete slab at ground level.

Framing: Masonry load bearing walls with wood framed roof that has been supplemented with steel reinforcing members.

Exterior Walls: Masonry.

Roof: Slate

Floors: Wood, carpet, tile and some flagstone.

Interior Walls: Plaster and drywall with wooden baseboards, moldings and trim.

Ceilings: Drywall and plaster with medallions at some light fixtures. Most units have high ceilings and crown moldings.

Lighting: Incandescent fixtures. Many of the units have installed and own chandeliers utilized in the living and dining areas of some of the apartments.

Doors: Raised panel entry doors. Interior doors were both flush type and raised panel doors; all door frames are wood.

Windows: Double hung wood framed multi-light windows

HVAC: Some of the apartments have central air and heat, others have window units.

Bathrooms: The bathroom fixtures are from basic to deluxe, depending on renovation and upgrades.

2010 Rent Study lower Pontalba.doc 20 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Balconies: Ornamental wrought iron railings and support members; wood planking for floors and ceilings. 2nd level has wide balcony. 3rd floor has a narrow balcony.

Stairwells: Wooden stairs and banister rails, plaster ceilings and walls.

Features: Smoke detectors, intercom system to front door.

Following are exterior photographs of the Lower Pontalba building.

2010 Rent Study lower Pontalba.doc 21 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

SUBJECT PHOTOGRAPHS

Lower Pontalba and St. Ann Street Looking Toward Decatur Street

Lower Pontalba in Upper Left – Taken from the Museum Offices

2010 Rent Study lower Pontalba.doc 22 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

SUBJECT PHOTOGRAPHS

Lower Pontalba on Right Looking Toward Chartres Street

St. Ann Street Looking Toward Rampart Street from the Corner of St. Ann and Chartres Streets

2010 Rent Study lower Pontalba.doc 23 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

SUBJECT PHOTOGRAPHS

Chartres Street Looking Toward Canal Street – St. Louis Cathedral and the Cabildo on Right

Jackson Square on Right – Subject on Left

2010 Rent Study lower Pontalba.doc 24 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

SUBJECT PHOTOGRAPHS

Decatur Street Looking Toward Esplanade – Subject on Left

Decatur Street Looking Toward Canal Street – Jackson Square on Right

2010 Rent Study lower Pontalba.doc 25 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

FRENCH QUARTER APARTMENT MARKET

The subject property is unique in almost every aspect of its existence. The two most distinct features of the subject are its location and historic nature. Locationally, the subject faces the historic Jackson Square, is catty corner to the Cabildo and St. Louis Cathedral, is directly across from Jax Brewery, and within a short block from the Historic French Market. The location is at the very heart of the French Quarter. This area, Jackson Square and the French Market, is the location where festivals and celebrations are held. This area is similar to Times Square in New York – the focal point of seasonal celebrations such as New Year’s, Christmas caroling, Mardi Gras, French Quarter Fest, and most any other city celebration. This a place for those who choose to live and entertain in an exciting environment. Demand for apartments in the French Quarter has always been good.

In order to find properties exhibiting identical characteristics, all one has to do is look across Jackson Square to the Upper Pontalba Building. Although the Lower and Upper Pontalba buildings were originally designed as mirror image properties and both were converted to apartments, the present state of improvements differ considerably. The Lower Pontalba building is operated by the State of Louisiana and the Upper Pontalba is operated by the city of New Orleans. The Upper Pontalba was renovated pre-Katrina and all of the units are in similar condition except for size. Rents per square foot range from $1.15 to $1.85 per square foot. There are no townhouse units. The Upper Pontalba utilizes the fourth floor as rentals where the Lower does not and the Lower Pontalba apartments are more consistent in size and have retained more of the original design of the building. Factors other than the general market are utilized to set the rent for the Upper Pontalba Apartments so we have utilized market information and privately owned units to set market rent in this report.

According to the Spring 2010 Multi-Family Report by Larry G. Schedler, the apartment market has been stable with regards to rental rates and occupancy but there has been an unprecedented amount of new construction in a stagnant job market. The Historic areas have seen occupancy rise from 85% to 91% with rents slightly increasing. The historic center includes in the CBD, Uptown and the Tulane Avenue corridor. The average rents are $1.50 per square foot or $1,260 for an average size unit of 839 square feet. These averages are in complexes with tenant amenities such as exercise areas. New apartments coming on line are as follows:

Project Name Developer Units Completion

930 Poydras Brian Gibbs 250 Now Leasing The Maritime Wisznia 112 Fall 2010 The Saratoga Lofts Wisznia 153 Spring 2011 National Rice Mills Sean Cummings 67 Spring 2011 The Muses The Muses, LP 230 Summer 2010

2010 Rent Study lower Pontalba.doc 26 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Pres Kabacoff has obtained approval to construct a 54-unit apartment complex at 1137 Esplanade Ave. The site has been vacant for about 40 years. Longtime residents may remember when St. Aloysius, an all-boys high school, was at that location. The project is for lower income residents.

Specific information within an area bounded by St. Louis St., Decatur St., Royal St. and St. Philip St. for unfurnished units without parking was taken from the Multi List Service as follows:

Leases in the Subject Area 2008 S/F Monthly Unit Condition # of Leases Size Range Rental Range Rental Range Mean

Excellent 9 650-800 $1,250-$1,500 $1.71-$2.30 $1.92 Good 2 600-1,000 $800-$1,250 $1.25-$1.33 $1.29 Average 1 800 $950 $1.19 $1.19

2009 S/F Monthly Unit Condition # of Leases Size Range Rental Range Rental Range Mean

Excellent 7 800-1,260 $1,250-$2,900 $1.43-$2.42 $1.81 Good 7 699-1,614 $1,000-$2,450 $1.00-$1.94 $1.50 Average 1 903 $825 $0.91 $0.91

5 Months 2010 S/F Monthly Unit Condition # of Leases Size Range Rental Range Rental Range Mean

Excellent 1 1,600 $4,400 $2.99 $2.99 Good 7 950-1,400 $1,200-$1,750 $1.15-$1.35 $1.26 Average None N/A N/A N/A N/A

Listings

S/F Monthly Unit Condition # of Leases Size Range Rental Range Rental Range Mean

Good 2 1,425-1,800 $2,000-$2,500 $1.40 $1.39

This information reflects a stable market

2010 Rent Study lower Pontalba.doc 27 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

The subject units range in size from 1,200 to 1,530 square feet.

Pat Henry of the French Market Corporation provided the appraisers with a 2009 rental study done by F. Miller Guice, MAI, with projected rents for the Upper Pontalba Apartments. According to Pat Henry the apartments are in good condition with average quality cabinetry, appliances and central air and heat. The “Board” of the French Market Corporation approves final rents and sometimes other criteria is involved in the final conclusion. The following Upper Pontalba rents are within our projected rental conclusion for second floor units in Good Condition with average quality finishes as follows

Upper Pontalba Apartments- Good Condition/ Average Quality Finish Comparable Average Projected Type of Unit Total Average Rent range Rent per Av. Rent per Floor Location Units Sq. Ft. per S/F Month S/F Rounded

Good Condition Avg. to Good Finishes Central A/C 2nd Floor 7 1,506 $1.25 - $2.21 $2,636 $1.75 $2,650 3rd Floor 6 1,217 $1.25- $2.21 $2,008 $1.65 $2,000

The rents above are the most comparable in size to the subject. We did not include efficiency apt. rents or rents for units above 1,800 square feet.

The appraiser interviewed Pat Henry with the French Market Corporation. The market rental study was given to the appraiser. The above information was taken from that study completed in August 2009.

There is a lack of high-end apartments that have leased over the last 18 months in a size range similar to our subject apartments. Many have parking and/or pool or have been fully furnished which skews the unit rent. There is an abundance of apartments in average condition with average quality finishes.

In analyzing the data presented on the foregoing pages, the readers must realize that the French Quarter is a market that typically lacks the conformity of most other neighborhoods. Most properties, which are used as apartments, were—like the subject—converted from other uses, typically from single-family residences. In the French Quarter, residents are accustomed to walk-up apartments and distant parking places. As stated earlier, the people who live in The French Quarter do so because they choose to live in an exciting environment. French Quarter residents are willing to sacrifice certain amenities such as elevators and nearby parking to live in historic properties and be in a neighborhood where festivals and celebrations are the norm.

Agents that are most active in the French Quarter say that while certain patterns do exist insofar as relationship between rents and size or number of bedrooms and baths, etc., these relationships are never as clear as they are in other parts of the city or suburban areas.

2010 Rent Study lower Pontalba.doc 28 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

In regards to the subject property, the consensus among the most active rental agents in the area is that Lower Pontalba apartments are considered to be superior to most of the French Quarter apartments in location. However, the subject has some of the largest apartments in the entire metropolitan area. Therefore, size has to be considered when estimating market rent. The apartments in the Lower Pontalba are divided into three categories – Excellent, Good, and Average condition and the criteria for each is as follows:

Excellent (4 Units): Recent high quality renovation with high quality or deluxe finish in kitchen and baths. Good (14 Units): Newer renovation with effective age under 25 years with average to good quality finishes and central air condition. Average (10 Units): Older renovation with no recent upgrades. Older average or fair quality finish and may or may not have central air conditioning. Features: Adjustments to each comparable are basically self-explanatory. The adjustment for apartment features include components such as central air and heat, ceiling medallions, crown moldings, mantels, high ceilings, courtyard or balcony, and 2ndvs.3rd-floor location.

The research for rentals, which most directly compete with the subject, is shown in each grid with a full write-up in the addenda of the report. The appraisers researched rentals from the subject’s overall neighborhood, the French Quarter, and chose the largest of the comparables and the closest in geographic location.

Nine Rental Comparables with location map, information sheet, and photograph are in the Addenda of the Report. Each Comparable number in the adjustment grid refers to the Addenda Comparable Number. Comparables 1, 2, and 3 are used to estimate rent for units in Average Condition. Comparables 4, 5, and 6 are used to estimate rent for units in Good condition. Comparables 7, 8, and 9 are used to estimate the market rent for units in Excellent condition.

Each unit analysis has a photograph, Unit Profile Sheet, adjustment Grid, conclusion of estimated Market Rent, and floor plan provided by the client. Each unit analysis is separated by a numbered tab. The numbers for each unit are along the left margin on page 3 in the Summary Chart.

2010 Rent Study lower Pontalba.doc 29 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

FRENCH QUARTER MAP

Subject

2010 Rent Study lower Pontalba.doc 30 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

LOWER PONTALBA APARTMENTS BY UNIT

2010 Rent Study lower Pontalba.doc 31 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

503 St. Ann Street 2nd Floor New Orleans, La. Inspected April 13, 2010

2nd Floor Wrap Around Balcony

2010 Rent Study lower Pontalba.doc 32 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

UNIT PROFILE 503 ST. ANN – 2ND FLOOR

Tenant

Apartment Condition Excellent

Age/Quality of Finishes Good (12 years old)

Size – Square Feet 1,530 Square Feet

Number of Rooms and Bathrooms 3 Rooms – 1 ½ Baths

Length of Occupancy 13 Years +/-

Current Rent: $2,100.00/Month

Pass Through’s per Month $ 102.00/Month

Total Rent Paid $2,202.00/Month

Unit Rent per Square Foot $1.44

Amenities:

View: Decatur, the River, and Jackson Square Central Air & Heat Yes Dishwasher Yes Washer/Dryer Yes Refinished Floors Yes

Appliances Owned by Tenant: Stove, refrigerator, dishwasher, and washer and dryer. Other: Chandeliers

Remarks:

The tenant totally renovated the apartment in January of 1998 with good quality finishes. Renovation included new plumbing, wiring, central air and heat, washer/dryer, granite countertops, quality cabinets and new and refinished flooring. There is a booster air unit in the rear. The apartment has a second level wrap around balcony overlooking Jackson Avenue and Decatur Street.

The apartment is above a restaurant/bar creating a high noise level over and above street noise. Soundproofing may help alleviate this problem. The noise level is considered in the final analysis.

Before renovation, apartment was in average condition with four rooms and 1.5 baths.

2010 Rent Study lower Pontalba.doc 33 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Conclusion:

The tenant in 503 St. Ann owns the appliances and the light fixtures in the apartment. It is assumed, based on the condition of the apartment, a quality level of replacement will be furnished if the tenant vacates.

Based on the following analysis, the rent range is from $1.62 per square foot to $1.81 per square foot. All comparables were adjusted and given some weight in the final value conclusion. Based on the quality and quantity of information provided, the market rent for the subject apartment is $2,675 per month (R) or $1.75 per square foot.

Market Rent (As is): $2,675.00

Market Rent based on an average condition with average finish: The apartment was in average condition prior to tenant renovations. Based information in the market place a unit rent of approximately $1.30 per square foot is a reasonable assumption or $1,990 +/- rent per month:

2010 Rent Study lower Pontalba.doc 34 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Adjustment Grid - Unit 503 St. Ann - Lower Pontalba 2nd Floor Apartment

Subject Comp. #7 Comp. #8 Comp. #9 Location Unit 503/2nd Floor 712 526 920 St. Ann St. Philip Madison Conti N/A Leased Leased Leased New Orleans New Orleans New Orleans New Orleans

Lease Date N/A 1/15/2010 12/30/2008 2/4/2009 Rent with pass thru's $2,202 $1,700 $2,274 $1,700 Unit Size S/F 1,530 900 1,400 940 # Baths 1.5 1.0 2.0 1.0 Central Air/Heat Yes Yes Yes Yes Condition Excl. Excl Excl Excl Quality/Age Finishes Good Good Excl Average Rent per S/F $1.44 $1.89 $1.62 $1.81

Offering vs Leased 0% 0% 0% $1.89 $1.62 $1.81

Location (takes noise into consideration) 5% 0% 10%

Size -15% 0% -15%

Features 5% 5% 0%

Quality/Age of Finishes 0% -5% 5%

Condition 0% 0% 0%

Total Adjustments: -5% 0% 0%

$1.79 $1.62 $1.81

Subj. by Comparison: Conclusion per S/F $1.75 Conclusion $2,678 Market Rent Rounded $2,675

2010 Rent Study lower Pontalba.doc 35 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

FLOOR PLAN- wrap balcony Decatur St.

½ Bath

Bath

2010 Rent Study lower Pontalba.doc 36 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

503 St. Ann Street 3rd Floor New Orleans, La. Inspected April 13, 2010

503 St. Ann 3rd Floor

2010 Rent Study lower Pontalba.doc 37 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

UNIT PROFILE 503 ST. ANN – 3rd FLOOR

Tenant

Apartment Condition Good

Quality/Age of Finishes Average Quality, Recently Updated

Size – Square Feet 1,530 Square Feet

Number of Rooms and Bathrooms 3 Rooms – 2 Baths

Length of Occupancy 1 Year +/-

Current Rent: $1,900.00/Month

Pass Through’s per Month $ 77.00/Month

Total Rent Paid $1,977.00/Month

Unit Rent per Square Foot $1.29

Amenities:

View: Decatur, River, and Jackson Square Central Air & Heat Yes Dishwasher No Washer/Dryer Yes Refinished Floors Yes

Appliances Owned by Tenant: None

Remarks:

The apartment is in good condition with recently updated average quality finishes and appliances. Apartment has hardwood floors and central air and heat. Appliances provided by Lessor. The apartment has a small third level wrap around balcony overlooking Jackson Avenue and Decatur Street. There are some historic features such as mantels and large windows.

2010 Rent Study lower Pontalba.doc 38 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Conclusion

Based on the following analysis, the adjusted rent range is from $1.60 per square foot to $1.72 per square foot. This unit is on the third floor. This tends to set the unit rent at the lower end of the adjusted range. Based on the quality and quantity of information, the market rent for the subject apartment is $2,450.00 (R) per month or $1.60 per square foot.

Market Rent (As is): $2,450.00 (R)

2010 Rent Study lower Pontalba.doc 39 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Adjustment Grid - Unit 503 St. Ann - Lower Pontalba 3rd Floor Apartment

Subject Comp. #4 Comp. #5 Comp. #6 Location Unit 503/3rd Floor 632 1034 1140 St. Ann St. Peter Royal Decatur N/A 2nd flr. Leased 2nd flr Leased 2nd flr Leased New Orleans New Orleans New Orleans New Orleans

Lease Date N/A 6/14/2009 6/15/2009 6/19/2009 Rent with pass thru's $1,977 $2,450 $1,650 $2,700 Unit Size S/F 1,530 1,614 1,050 1,650 # Baths 2.0 1.0 1.0 1.5 Condition Good Good Good Good Central Air/Heat Yes Yes Yes Yes Quality/Age of Finishes Avg. Avg. Avg. Good Rent per S/F $1.29 $1.52 $1.57 $1.64

Offering vs Leased 0% 0% 0% $1.52 $1.57 $1.64

Location 5% 10% 5%

Size 0% -5% 0%

Features 0% 0% 5%

Quality/Age of Finishes 0% 0% -5%

Condition 0% 0% 0%

Total Adjustments: +5% 5% 5%

$1.60 $1.65 $1.72

Subj. by Comparison: Conclusion per S/F $1.60 Conclusion $2,448 Market Value Rounded $2,450

2010 Rent Study lower Pontalba.doc 40 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

FLOOR PLAN

Kitchen

Bath

Bath

St. Ann St. side

2010 Rent Study lower Pontalba.doc 41 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

509 St. Ann Street -Townhouse New Orleans, La. Inspected April 8, 2010

2nd / 3rd Floor Balcony

2010 Rent Study lower Pontalba.doc 42 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

UNIT PROFILE 509 ST. ANN – Townhouse

Tenant

Apartment Condition Excellent

Quality/Age of Finishes: Excellent (2004)

Size – Square Feet 1,200 Square Feet

Number of Rooms and Bathrooms 3 Rooms – 1 ½ Baths

Length of Occupancy 7 Years +/-

Current Rent: $1,850.00/Month

Pass Through’s per Month $ 80.00/Month

Total Rent Paid $1,930.00/Month

Unit Rent per Square Foot $1.61

Amenities:

View: Decatur and Jackson Square Central Air & Heat Yes Dishwasher Yes Washer/Dryer No Refinished Floors Yes Other Private Entrance, 2nd & 3rd Floor Balcony, access to 4th floor storage.

Appliances Owned by Tenant: Stovetop, oven, dishwasher, warming drawer, and refrigerator,

Other: Chandeliers owned by tenant

Remarks:

The tenant totally renovated the apartment about 5 years ago with a reported expenditure of $250,000. The kitchen is small but with high quality finishes. The entertaining areas are on the 2nd level including a ½ bath in the stairwell. There are two bedrooms and one bath on third floor Before renovation, apartment was in Good condition with good quality finishes and was featured in Architectural Digest.

2010 Rent Study lower Pontalba.doc 43 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Conclusion

The tenant in 509 St. Ann owns the appliances and the light fixtures in the apartment. It is assumed, based on the condition of the apartment, a quality level of replacement will be furnished if the tenant vacates.

The adjustment for features takes into consideration the double balconies, private entrance, small kitchen compared to each comparable. This is a unique apartment within the Lower Pontalba of which there is only one other townhouse unit. Based on the following analysis, the rent range is from $1.87 per square foot to $2.17 per square foot. All comparables were adjusted and Comparable 2, the closest geographically to the subject was given the most weight in the final value conclusion. Based on the quality and quantity of information, the market rent for the subject apartment is $2,280 per month or $1.90+/- per square foot.

Market Rent (As is): $2,280.00 (R)

Rent Based on Condition prior to Renovation:

Good Condition- Good Quality Older Finishes

Market rent assuming finish before renovation – Good quality with good quality older (1989) finish - $1.70 per Square Foot or $2,040+/- per month.

2010 Rent Study lower Pontalba.doc 44 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Adjustment Grid - Unit 509 St. Ann - Lower Pontalba Townhouse

Subject Location 509 Comp. #7 Comp. #8 Comp. #9 St. Ann 712 526 920 Townhouse St. Philip Madison Conti N/A Leased Leased Leased New Orleans New Orleans New Orleans New Orleans

Lease Date N/A 1/15/2010 12/30/2008 2/4/2009 Rent with pass thru's $1,930 $1,700 $2,274 $1,700 Unit Size S/F 1,200 900 1,400 940 # Baths 1.5 1.0 2.0 1.0 Condition Excl Excl Excl Excl Quality/Age of Finishes Excl Good Excl Avg. Central Air/Heat Yes Yes Yes Yes Rent per S/F $1.61 $1.89 $1.62 $1.81

Offering vs Leased 0% 0% 0% $1.89 $1.62 $1.81

Location 10% 5% 15%

Size -10% 0% -10%

Features (Private Entrance-2 Balc.) 10% 10% 5%

Quality/Age of Finishes 5% 0% 10%

Condition 0% 0% 0%

Total Adjustments: 15% 15% 20%

Subj. by Comparison: $2.17 $1.87 $2.17

Conclusion per S/F $1.90 Conclusion $2,280 Market Rent $2,280

2010 Rent Study lower Pontalba.doc 45 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

FLOOR PLAN

2010 Rent Study lower Pontalba.doc 46 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

511 St. Ann Street 2ND Floor New Orleans, La. Inspected April 13, 2010

2nd Floor Balcony

2010 Rent Study lower Pontalba.doc 47 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

UNIT PROFILE 511 ST. ANN – 2ND FLOOR

Tenant

Apartment Condition Average

Quality/Age of Finishes: Fair (Over 30 Years)

Size – Square Feet 1,450 Square Feet

Number of Rooms and Bathrooms 4 Rooms – 2 Baths

Length of Occupancy Many Years

Current Rent: $1,850.00/Month

Pass Through’s per Month $ 70.00/Month

Total Rent Paid $1,920.00/Month

Unit Rent per Square Foot $1.32

Amenities:

View: Jackson Square Central Air & Heat No Dishwasher No Washer/Dryer Hookups Refinished Floors No

Appliances Owned by Tenant: None.

Other: No stove in apartment. Older refrigerator. Chandeliers owned by tenant.

Remarks:

The tenant has lived in the apartment for many years. The finishes are older with some deferred maintenance. The floors in the kitchen are vinyl. There is no stove or dishwasher. The rear walkway is open with wood latticework, for privacy. The condition is average with older finishes. Currently the museum is upgrading the rear bathroom (shower only).

Tenant was not present during inspection.

2010 Rent Study lower Pontalba.doc 48 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Conclusion

The apartment has been lived in a long time with apparently no on going maintenance. The apartment is in average condition with no stove or central air and heat. Based on the following analysis, the rent range is from $0.86 per square foot to $1.24 per square foot. All comparables were adjusted and the most weight was placed on Comparables 1 and 2, the largest of the comparables units. Based on the quality and quantity of information, the market rent for the subject apartment is $1,740 per month or $1.20 per square foot.

Market Rent (As is): $1,740.00 (R)

2010 Rent Study lower Pontalba.doc 49 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Adjustment Grid - Unit 511 St. Ann - Lower Pontalba 2nd Floor Apartment

Subject Comp. #1 Comp. #2 Comp. #3 Location Unit 511/2nd Floor 1131 543 708 St. Ann Decatur Gov. Nichols Orleans N/A Leased Leased Leased New Orleans New Orleans New Orleans New Orleans

Lease Date N/A 8/10/2009 1/12/2010 2/10/2010 Rent with pass thru's $1,920 $1,300 $1,750 $825 Unit Size S/F 1,450 1,100 1,400 903 # Baths 2.0 1.0 1.0 1.0 Condition Avg. Good Good Avg. Quality/Age Finishes Fair Avg. Avg. Fair Central Air/Heat No No Yes Yes Rent per S/F $1.32 $1.18 $1.25 $0.91

Offering vs Leased 0% 0% 0% $1.18 $1.25 $0.91

Location 5% 5% 5%

Size 0% 0% -15%

Features 10% 0% 5%

Quality/Age of Finishes -5% -5% 0%

Condition -5% -5% 0%

Total Adjustments: 5% -5% -5%

$1.24 $1.19 $0.86

Subj. by Comparison: Conclusion per S/F $1.20 Conclusion $1,740 Market Rent $1,740

2010 Rent Study lower Pontalba.doc 50 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

FLOOR PLAN

Bath w/Shower

Bath

2010 Rent Study lower Pontalba.doc 51 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

511 St. Ann Street 3rd Floor New Orleans, La. Inspected April 13, 2010

3rd Floor Balcony

2010 Rent Study lower Pontalba.doc 52 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

UNIT PROFILE 511 ST. ANN – 3rd FLOOR

Tenant

Apartment Condition Average

Quality/Age of Finishes: Average

Size – Square Feet 1,450 Square Feet

Number of Rooms and Bathrooms 4 Rooms – 2 Baths

Length of Occupancy 5 Years +/-

Current Rent: $2,000.00/Month

Pass Through’s per Month $ 95.00/Month

Total Rent Paid $2,095.00/Month

Unit Rent per Square Foot $1.44

Amenities:

View: Jackson Square Central Air & Heat Yes Dishwasher Yes Washer/Dryer Yes Refinished Floors No

Appliances Owned by the Tenant: Stove, refrigerator, dishwasher, and washer and dryer, microwave.

Remarks:

The apartment has average quality finishes and is in average condition but an overall appealing historic look. The apartment has central air and heat and the walkway to the rear wing has been enclosed. Tile floors in the kitchen and vinyl in the bathrooms. There are two rooms in the front and two rooms in the rear plus two full baths.

2010 Rent Study lower Pontalba.doc 53 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Conclusion

The Lessor provided the appliances in 511-3 St. Ann. The chandeliers belong to the tenant.

Based on the following analysis, the rent range is from $1.26 per square foot to $1.36 per square foot. The unit is on the 3rd floor. The unit rent would tend to fall at the lower end of the range. Based on the quality and quantity of information, market rent for the subject apartment is $1,825 (R) or $1.26 per square foot.

Market Rent (As is): $1,825.00 (R)

2010 Rent Study lower Pontalba.doc 54 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Adjustment Grid - Unit 511 St. Ann - Lower Pontalba 3rd Floor Apartment

Subject Comp. #1 Comp. #2 Comp. #3 Location Unit 511/3rd Floor 1131 543 708 St. Ann Decatur Gov. Nichols Orleans N/A Leased Leased Leased New Orleans New Orleans New Orleans New Orleans

Lease Date N/A 8/10/2009 1/12/2010 2/10/2010 Rent with pass thru's $2,095 $1,300 $1,750 $1,200 Building Size S/F 1,450 1,100 1,400 950 # Baths 2.0 1.0 1.0 1.0 Condition Average Good Good Avg. Quality/Age of Finishes Average Avg. Avg. Avg. Central air/heat Yes No Yes Yes Price per S/F $1.44 $1.18 $1.25 $1.26

Offering vs Leased 0% 0% 0% $1.18 $1.25 $1.26

Location 5% 5% 5%

Size 0% 0% -15%

Features 15% 5% 10%

Quality/Age of Finishes 0% 0% 0%

Condition -5% -5% 0%

Total Adjustments: 15% 5% 0%

$1.36 $1.31 $1.26

Subj. by Comparison: Conclusion per S/F $1.26 Conclusion $1,827 Market Rent Rounded $1,825

2010 Rent Study lower Pontalba.doc 55 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

FLOOR PLAN

2010 Rent Study lower Pontalba.doc 56 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

515 St. Ann Street 2ND Floor New Orleans, La. Inspected April 9, 2010

2nd Floor Balcony

2010 Rent Study lower Pontalba.doc 57 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

UNIT PROFILE 515 ST. ANN – 2ND FLOOR

Tenant

Apartment Condition Average

Quality/Age of Finishes: Fair – Older Finishes

Size – Square Feet 1,450 Square Feet

Number of Rooms and Bathrooms 3 Rooms – 1 ½ Baths

Length of Occupancy 20+ Years

Current Rent: $1,850.00/Month

Pass Through’s per Month $ 70.00/Month

Total Rent Paid $1,920.00/Month

Unit Rent per Square Foot $1.32

Amenities:

View: Jackson Square Central Air & Heat No Dishwasher No Washer/Dryer No Refinished Floors No

Appliances Owned by Tenant: Stove and refrigerator

Other: Chandeliers belong to tenant

Remarks:

This is a long-term tenant with no upgrades to the apartment. The finishes are older over 20 years and the apartment is in average condition. There are space heaters and window units.

2010 Rent Study lower Pontalba.doc 58 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Conclusion

The tenant in 515-2 St. Ann owns the appliances and the chandeliers in the apartment. The wide 2nd floor balcony has views of Jackson Square and the neighboring historic buildings. It is assumed that the appliances will be replaced if the apartment is vacated.

Based on the following analysis, the rent range is from $0.86 per square foot to $1.24 per square foot. All comparables were adjusted and given some weight in the final value conclusion. Based quality and quantity of information provided, the market rent for the subject apartment is $1,740 per month or $1.20 per square foot.

Market Rent (As is): $1,740.00 (R)

2010 Rent Study lower Pontalba.doc 59 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Adjustment Grid - Unit 515 St. Ann - Lower Pontalba 2nd Floor Apartment

Subject Comp.#1 Comp. #2 Comp. #3 Location Unit 515/2nd Floor 1131 543 708 St. Ann Decatur Gov. Nichols Orleans N/A Leased Leased Leased New Orleans New Orleans New Orleans New Orleans

Lease Date N/A 8/10/2009 1/12/2010 2/10/2010 Rent with pass thru's $1,920 $1,300 $1,750 $825 Unit Size S/F 1,450 1,100 1,400 903 # Baths 1.5 1.0 1.0 1.0 Condition Avg. Good Good Avg. Quality/Age Finishes Fair Avg. Avg. Fair Central Air/Heat No No Yes Yes Rent per S/F $1.32 $1.18 $1.25 $0.91

Offering vs Leased 0% 0% 0% $1.18 $1.25 $0.91

Location 5% 5% 5%

Size 0% 0% -15%

Features 10% 0% 5%

Quality/Age of Finishes -5% -5% 0%

Condition -5% -5% 0%

Total Adjustments: 5% -5% -5%

$1.24 $1.19 $0.86

Subj. by Comparison: Conclusion per S/F $1.20 Conclusion $1,740 Market Rent $1,740

2010 Rent Study lower Pontalba.doc 60 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

FLOOR PLAN

2010 Rent Study lower Pontalba.doc 61 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

515 St. Ann Street 3rd Floor New Orleans, La. Inspected April 13, 2010

3rd Floor Balcony

2010 Rent Study lower Pontalba.doc 62 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

UNIT PROFILE 515 ST. ANN – 3ND FLOOR

Tenant

Apartment Condition Average

Quality/Age of Finishes: Good but Older

Size – Square Feet 1,450 Square Feet

Number of Rooms and Bathrooms 4 Rooms – 1 1/2 Baths

Length of Occupancy Unknown

Current Rent: $2,000.00/Month

Pass Through’s per Month $ 95.00/Month

Total Rent Paid $2,095.00/Month

Unit Rent per Square Foot $1.44

Amenities:

View: Decatur and Jackson Square Central Air & Heat Yes Dishwasher Yes Washer/Dryer Yes Refinished Floors Yes

Appliances Provided: Stove, refrigerator, washer and dryer.

Other: Chandeliers – Tenant Owned

Remarks:

The unit is in average condition with older good quality finishes. A portion of the rear balcony has been left open. The wall dividing the two bedrooms in the rear has been removed creating one larger bedroom. There is a stacked washer/dryer in rear laundry room.

2010 Rent Study lower Pontalba.doc 63 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Conclusion

The tenant in 515-3 St. owns the chandeliers – the appliances were provided.

Based on the following analysis, the rent range is from $1.32 per square foot to $1.43 per square foot. The unit is on the 3rd floor, and this would tend to set the rent toward the lower end of the adjusted range. Based on the quality and quantity of information, the market rent for the subject apartment is $1,900 per month or $1.32 per square foot.

Market Rent (As is): $1,900.00

2010 Rent Study lower Pontalba.doc 64 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Adjustment Grid - Unit 515 St. Ann - Lower Pontalba 3rd Floor Apartment

Subject Comp. #1 Comp. #2 Comp. #3 Location Unit 511/3rd Floor 1131 543 708 St. Ann Decatur Gov. Nichols Orleans N/A Leased Leased Leased New Orleans New Orleans New Orleans New Orleans

Lease Date N/A 8/10/2009 1/12/2010 2/10/2010 Rent with pass thru's $2,095 $1,300 $1,750 $1,200 Building Size S/F 1,450 1,100 1,400 950 # Baths 2.0 1.0 1.0 1.0 Condition Average Good Good Avg. Quality/Age of Finishes Good Avg. Avg. Avg. Central Air/Heat Yes No Yes Yes Price per S/F $1.44 $1.18 $1.25 $1.26

Offering vs Leased 0% 0% 0% $1.18 $1.25 $1.26

Location 5% 5% 5%

Size 0% 0% -15%

Features 15% 5% 10%

Quality/Age of Finishes 5% 5% 5%

Condition -5% -5% 0%

Total Adjustments: 20% 10% 5%

$1.43 $1.38 $1.32

Subj. by Comparison: Conclusion per S/F $1.32 Conclusion $1,914 Market Rent $1,900

2010 Rent Study lower Pontalba.doc 65 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

FLOOR PLAN

2010 Rent Study lower Pontalba.doc 66 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

519 St. Ann Street 2ND Floor New Orleans, La. Inspected April 8, 2010

2nd Floor Balcony

2010 Rent Study lower Pontalba.doc 67 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

UNIT PROFILE 519 ST. ANN – 2ND FLOOR

Tenant

Apartment Condition Average

Quality/Age of Finishes: Average – Older Finishes

Size – Square Feet 1,450 Square Feet

Number of Rooms and Bathrooms 3 Rooms – 2 Baths

Length of Occupancy 25 Years +

Current Rent: $2,000.00/Month

Pass Through’s per Month $ 70.00/Month

Total Rent Paid $2,070.00/Month

Unit Rent per Square Foot $1.43

Amenities:

View: Jackson Square Central Air & Heat No Dishwasher No Washer/Dryer Hookups Refinished Floors No

Appliances Owned by Tenant: None

Remarks:

The tenant has been a resident for over 25 years and the apartment has not been upgraded. The balcony is open -has not been enclosed. There is one bedroom off the rear walkway. The apartment has a second level balcony overlooking Jackson Square.

2010 Rent Study lower Pontalba.doc 68 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Conclusions

There is no dishwasher but there is a washer and dryer on the rear balcony.

Based on the following analysis, the rent range is from $1.20 per square foot to $1.30 per square foot. All comparables were adjusted and given some weight in the final value conclusion. Based on the quality and quantity of information provided, the market rent for the subject apartment is $1,815 per month or $1.25 per square foot.

Market Rent (As is): $1,815.00

2010 Rent Study lower Pontalba.doc 69 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Adjustment Grid - Unit 519 St. Ann - Lower Pontalba 2nd Floor Apartment

Subject Comp.#1 Comp. #2 Comp. #3 Location Unit 519/2nd Floor 1131 543 708 St. Ann Decatur Gov. Nichols Orleans N/A Leased Leased Leased New Orleans New Orleans New Orleans New Orleans

Lease Date N/A 8/10/2009 1/12/2010 2/10/2010 Rent with pass thru's $1,920 $1,300 $1,750 $1,200 Unit Size S/F 1,450 1,100 1,400 950 # Baths 1.5 1.0 1.0 1.0 Condition Avg. Good Good Avg. Quality/Age Finishes Avg. Avg. Avg. Avg. Central Air/Heat No No Yes Yes Rent per S/F $1.32 $1.18 $1.25 $1.26

Offering vs Leased 0% 0% 0% $1.18 $1.25 $1.26

Location 5% 5% 5%

Size 0% 0% -15%

Features 10% 0% 5%

Quality/Age of Finishes 0% 0% 0%

Condition -5% -5% 0%

Total Adjustments: 10% 0% -5%

$1.30 $1.25 $1.20

Subj. by Comparison: Conclusion per S/F $1.25 Conclusion $1,813 Market Rent Rounded $1,815

2010 Rent Study lower Pontalba.doc 70 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

FLOOR PLAN

2010 Rent Study lower Pontalba.doc 71 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

519 St. Ann Street 3rd Floor New Orleans, La. Inspected April 8, 2010

3rd Floor Balcony

2010 Rent Study lower Pontalba.doc 72 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

UNIT PROFILE 519 ST. ANN – 3rd FLOOR

Tenant

Apartment Condition Good

Quality/Age of Finishes: Good

Size – Square Feet 1,400 Square Feet

Number of Rooms and Bathrooms 3 Rooms – 2 Baths (Rear is Shower)

Length of Occupancy Unknown

Current Rent: $1,750.00/Month

Pass Through’s per Month $ 95.00/Month

Total Rent Paid $1,845.00/Month

Unit Rent per Square Foot $1.34

Amenities:

View: Jackson Square Central Air & Heat Yes Dishwasher Yes Washer/Dryer Yes Refinished Floors Yes

Appliances Provided: Stove, refrigerator, microwave, and washer and dryer.

Other: Chandeliers owned by tenant.

Remarks:

The tenant renovated the apartment adding Butler’s Pantry with ice maker off the kitchen. The kitchen is located in the hallway. The apartment has refinished hardwood floors and carpeting. The side porch is enclosed. The apartment has a narrow third level balcony overlooking Jackson Square.

2010 Rent Study lower Pontalba.doc 73 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Conclusion

The tenant in 519-3 St. Ann is considered to be in good condition with good quality older finishes.

Based on the following analysis, the rent range is from $1.67 per square foot to $1.81 per square foot. The unit is on the 3rd floor, and the unit rent is estimated to the lower end of the adjusted comparable range. Based on the quality and quantity of information, the market rent for the subject apartment is $2,465 per month or $1.70 per square foot.

Market Rent (As is): $2,465.00

2010 Rent Study lower Pontalba.doc 74 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Adjustment Grid - Unit 519 St. Ann - Lower Pontalba 3rd Floor Apartment

Subject Comp. #4 Comp. #5 Comp. #6 Location Unit 519/3rd Floor 632 1034 1140 St. Ann St. Peter Royal Decatur N/A Leased Leased Leased New Orleans New Orleans New Orleans New Orleans

Lease Date N/A 6/14/2009 6/15/2009 6/19/2009 Rent with pass thru's $1,977 $2,450 $1,650 $2,700 Unit Size S/F 1,450 1,614 1,050 1,650 # Baths 2.0 1.0 1.0 1.5 Condition Good Good Good Good Central Air/Heat Yes Yes Yes Yes Quality/Age of Finishes Good Avg. Avg. Good Rent per S/F $1.36 $1.52 $1.57 $1.64

Offering vs Leased 0% 0% 0% $1.52 $1.57 $1.64

Location 5% 10% 5%

Size 0% 0% 0%

Features 0% 0% 5%

Quality/Age of Finishes 5% 5% 0%

Condition 0% 0% 0%

Total Adjustments: 10% 15% 10%

$1.67 $1.81 $1.81

Subj. by Comparison: Conclusion per S/F $1.70 Conclusion $2,465 Market Rent $2,465

2010 Rent Study lower Pontalba.doc 75 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

FLOOR PLAN

2010 Rent Study lower Pontalba.doc 76 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

527 St. Ann Street 2ND Floor New Orleans, La. Inspected April 8, 2010

2nd Floor Balcony

2010 Rent Study lower Pontalba.doc 77 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

UNIT PROFILE 527 ST. ANN – 2ND FLOOR

Tenant

Apartment Condition Average

Quality/Age of Finishes: Average with recently renovated kitchen and bath done by Museum.

Size – Square Feet 1,450 Square Feet

Number of Rooms and Bathrooms 3 Rooms – 2 Baths

Length of Occupancy 25 Years +/-

Current Rent: $2,000.00/Month

Pass Through’s per Month $ 70.00/Month

Total Rent Paid $2,077.00/Month

Unit Rent per Square Foot $1.43

Amenities:

View: Decatur and Jackson Square Central Air & Heat Yes Dishwasher No Washer/Dryer Hookups Refinished Floors Yes

Appliances Provided: Stove, refrigerator, microwave.

Other: Chandeliers belong to the tenant

Remarks:

The apartment is in average condition with average quality finishes. The kitchen was updated by the Lessor. The balcony has view of Jackson Square and surrounding historic buildings. There are washer/dryer hookups.

2010 Rent Study lower Pontalba.doc 78 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Conclusion

The tenant in 527-2 St. Ann has an updated kitchen and bath.

Based on the following analysis, the rent range is from $1.20 per square foot to $1.31 per square foot. The unit has new finishes in the kitchen and bath. The unit rent would tend to fall at the upper end of the adjusted range. Based quality and quantity of information, the market rent for the subject apartment is $1,885 (R) per month or $1.30 per square foot.

Market Rent (As is): $1,885

2010 Rent Study lower Pontalba.doc 79 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Adjustment Grid - Unit 527 St. Ann - Lower Pontalba 2nd Floor Apartment

Subject Comp.#1 Comp. #2 Comp. #3 Location Unit 527/2nd Floor 1131 543 708 St. Ann Decatur Gov. Nichols Orleans N/A Leased Leased Leased New Orleans New Orleans New Orleans New Orleans

Lease Date N/A 8/10/2009 1/12/2010 2/10/2010 Rent with pass thru's $2,070 $1,300 $1,750 $1,200 Unit Size S/F 1,450 1,100 1,400 950 # Baths 1.5 1.0 1.0 1.0 Condition Avg. Good Good Avg. Quality/Age Finishes Avg. Avg. Avg. Avg. Central Air/Heat Yes No Yes Yes Rent per S/F $1.43 $1.18 $1.25 $1.26

Offering vs Leased 0% 0% 0% $1.18 $1.25 $1.26

Location 5% 5% 5%

Size 0% 0% -15%

Features 10% 5% 5%

Quality/Age of Finishes 0% 0% 0%

Condition -5% -5% 0%

Total Adjustments: 10% 5% -5%

$1.30 $1.31 $1.20

Subj. by Comparison: Conclusion per S/F $1.30 Conclusion $1,885 Market Rent Rounded $1,885

2010 Rent Study lower Pontalba.doc 80 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

FLOOR PLAN

2010 Rent Study lower Pontalba.doc 81 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

527 St. Ann Street 3rd Floor New Orleans, La. Inspected April 8, 2010

3rd Floor Balcony

2010 Rent Study lower Pontalba.doc 82 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

UNIT PROFILE 527 ST. ANN – 3rd FLOOR

Tenant

Apartment Condition Good

Quality/Age of Finishes: Good – (5 Years +/-)

Size – Square Feet 1,450 Square Feet

Number of Rooms and Bathrooms 5 Rooms – 2 Baths

Length of Occupancy Unknown

Current Rent: $2,000.00/Month

Pass Through’s per Month $ 95.00/Month

Total Rent Paid $2,095.00/Month

Unit Rent per Square Foot $1.45

Amenities:

View: Jackson Square Central Air & Heat Yes Dishwasher Yes Washer/Dryer Connections Refinished Floors Yes

Appliances Provided: Stove, refrigerator, dishwasher, and microwave

Remarks:

The apartment is in very good condition with recent renovation – apparently used as a hotel from time to time. The rear balcony is enclosed. There are high quality fixtures in the bathrooms.

2010 Rent Study lower Pontalba.doc 83 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Conclusion

Based on the following analysis, the adjusted rent range is from $1.67 per square foot to $1.80 per square foot. The unit is on the 3rd floor. The unit rent would tend to fall toward the lower end of the adjusted range. Based quality and quantity of information, the market rent for the subject apartment is $2,465 per month or $1.70 per square foot.

Market Rent (As is): $2,465.00

2010 Rent Study lower Pontalba.doc 84 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Adjustment Grid - Unit 527 St. Ann - Lower Pontalba 3rd Floor Apartment

Subject Comp. #4 Comp. #5 Comp. #6 Location Unit 527/3rd Floor 632 1034 1140 St. Ann St. Peter Royal Decatur N/A Leased Leased Leased New Orleans New Orleans New Orleans New Orleans

Lease Date N/A 6/14/2009 6/15/2009 6/19/2009 Rent with pass thru's $2,095 $2,450 $1,650 $2,700 Unit Size S/F 1,450 1,614 1,050 1,650 # Baths 2.0 1.0 1.0 1.5 Condition Good Good Good Good Central Air/Heat Yes Yes Yes Yes Quality/Age of Finishes Good Avg. Avg. Good Rent per S/F $1.44 $1.52 $1.57 $1.64

Offering vs Leased 0% 0% 0% $1.52 $1.57 $1.64

Location 5% 10% 5%

Size 0% 0% 0%

Features 0% 0% 5%

Quality/Age of Finishes 5% 5% 0%

Condition 0% 0% 0%

Total Adjustments: 10% 15% 10%

$1.67 $1.80 $1.80

Subj. by Comparison: Conclusion per S/F $1.70 Conclusion $2,465 Market Value $2,465

2010 Rent Study lower Pontalba.doc 85 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

FLOOR PLAN

2010 Rent Study lower Pontalba.doc 86 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

531 St. Ann Street 2ND Floor New Orleans, La. Inspected April 8, 2010

2nd Floor Balcony

2010 Rent Study lower Pontalba.doc 87 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

UNIT PROFILE 531 ST. ANN – 2ND FLOOR

Tenant

Apartment Condition Excellent

Quality/Age of Finishes: Excellent

Size – Square Feet 1,450 Square Feet

Number of Rooms and Bathrooms 4 Rooms – 2 Baths

Length of Occupancy 15 Years +/-

Current Rent: $2,000.00/Month

Pass Through’s per Month $ 70.00/Month

Total Rent Paid $2,070.00/Month

Unit Rent per Square Foot $1.43

Amenities:

View: Jackson Square Central Air & Heat Yes Dishwasher Yes Washer/Dryer Hookups Refinished Floors Yes

Appliances Owned by Tenant: Stove, refrigerator, and microwave.

Other: Chandeliers owned by tenant

Remarks:

The tenant totally renovated the apartment with high quality finishes and fixtures. The tenant also put in closets in the exterior balcony walkway. The tenants reported spending $100,000 + in the renovation process. Some of the renovation work was done by the museum. The apartment has a second level balcony overlooking Jackson Square.

2010 Rent Study lower Pontalba.doc 88 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Conclusion

The tenant in 531-2 St. Ann owns the appliances and the light fixtures in the apartment. It is assumed, based on the condition of the apartment, a quality level of replacement will be furnished if the tenant vacates.

Based on the following analysis, the rent range is from $1.78 per square foot to $1.99 per square foot. Comparable #8 is the closest in size and condition. The most weight is given to Comparable #8. Based quality and quantity of information provided, the market rent for the subject apartment is $2,750 per month or $1.80 per square foot.

Market Rent (As is): $2,750.00

2010 Rent Study lower Pontalba.doc 89 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Adjustment Grid - Unit 531 St. Ann - Lower Pontalba 2nd Floor Apartment

Location Subject Comp. #7 Comp. #8 Comp. #9 531 712 526 920 St. Ann/2nd Floor St. Philip Madison Conti N/A Leased Leased Leased New Orleans New Orleans New Orleans New Orleans

Lease Date N/A 1/15/2010 12/30/2008 2/4/2009 Rent with pass thru's $2,070 $1,700 $2,274 $1,700 Unit Size S/F 1,450 900 1,400 940 # Baths 2.0 1.0 2.0 1.0 Condition Excl Excl Excl Excl Quality/Age of Finishes Excl Good Excl Avg. Central Air/Heat Yes Yes Yes Yes Rent per S/F $1.43 $1.89 $1.62 $1.81

Offering vs Leased 0% 0% 0% $1.89 $1.62 $1.81

Location 10% 5% 15%

Size -15% 0% -15%

Features 5% 5% 0%

Quality/Age of Finishes 5% 0% 10%

Condition 0% 0% 0%

Total Adjustments: 5% 10% 10%

Subj. by Comparison: $1.98 $1.78 $1.99

Conclusion per S/F $1.80 Conclusion $2,610 Market Rent Rounded $2,600

Average-Good Condition @ $1.30 per S/F $1,885

2010 Rent Study lower Pontalba.doc 90 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

FLOOR PLAN

2010 Rent Study lower Pontalba.doc 91 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

531 St. Ann Street 3rd Floor New Orleans, La. Inspected April 8, 2010

3rd Floor Balcony

2010 Rent Study lower Pontalba.doc 92 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

UNIT PROFILE 531 ST. ANN – 3rd FLOOR

Tenant

Apartment Condition Average – (well maintained)

Quality/Age of Finishes: Average - Older

Size – Square Feet 1,450 Square Feet

Number of Rooms and Bathrooms 4 Rooms – 2 Baths

Length of Occupancy 25 Years +/-

Current Rent: $1,950.00/Month

Pass Through’s per Month $ 95.00/Month

Total Rent Paid $2,045.00/Month

Unit Rent per Square Foot $1.41

Amenities:

View: Jackson Square Central Air & Heat No Dishwasher Yes Washer/Dryer Hookups Refinished Floors No

Appliances Owned by Tenant: Stove and refrigerator

Remarks:

Apartment has been tenant’s primary residence for over 25 years. Apartment has been well maintained. The kitchen has double sink and granite counter tops. The rear balcony has been enclosed. The apartment has small third level balcony overlooking Jackson Square.

2010 Rent Study lower Pontalba.doc 93 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Conclusion

The tenant in 531-3 St. Ann owns the appliances and the light fixtures in the apartment. It is assumed, based on the condition of the apartment, a quality level of replacement will be furnished if the tenant vacates.

Based on the following analysis, the rent range is from $1.20 per square foot to $1.30 per square foot. The unit is on the third floor. This would tend to place the rent toward the lower end of the adjusted range. Based on the quality and quantity of information, the market rent for the subject apartment is $1,740 per month or $1.20 per square foot.

Market Rent (As is): $1,740.00 (R)

2010 Rent Study lower Pontalba.doc 94 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Adjustment Grid - Unit 531 St. Ann - Lower Pontalba 3rd Floor Apartment

Subject Comp.#1 Comp. #2 Comp. #3 Location Unit 531/3rd Floor 1131 543 708 St. Ann Decatur Gov. Nichols Orleans N/A Leased Leased Leased New Orleans New Orleans New Orleans New Orleans

Lease Date N/A 8/10/2009 1/12/2010 2/10/2010 Rent with pass thru's $2,045 $1,300 $1,750 $1,200 Unit Size S/F 1,450 1,100 1,400 950 # Baths 2.0 1.0 1.0 1.0 Condition Avg. Good Good Avg. Quality/Age Finishes Avg. Avg. Avg. Avg. Central Air/Heat No No Yes Yes Rent per S/F $1.41 $1.18 $1.25 $1.26

Offering vs Leased 0% 0% 0% $1.18 $1.25 $1.26

Location 5% 5% 5%

Size 0% 0% -15%

Features 10% 0% 5%

Quality/Age of Finishes 0% 0% 0%

Condition -5% -5% 0%

Total Adjustments: 10% 0% -5%

$1.30 $1.25 $1.20

Subj. by Comparison: Conclusion per S/F $1.20 Conclusion $1,740 Market Rent Rounded $1,740

2010 Rent Study lower Pontalba.doc 95 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

FLOOR PLAN

2010 Rent Study lower Pontalba.doc 96 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

535 St. Ann Street 2nd Floor New Orleans, La. Inspected April 8, 2010

2nd Floor Balcony

2010 Rent Study lower Pontalba.doc 97 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

UNIT PROFILE 535 ST. ANN – 2ND FLOOR

Tenant

Apartment Condition Good

Quality/Age of Finishes: Average – Older 20+ Finishes

Size – Square Feet 1,450 Square Feet

Number of Rooms and Bathrooms 3 Rooms – 2 Baths

Length of Occupancy Unknown

Current Rent: $1,900.00/Month

Pass Through’s per Month $ 70.00/Month

Total Rent Paid $1,970.00/Month

Unit Rent per Square Foot $1.36

Amenities:

View: Jackson Square Central Air & Heat No Dishwasher No Washer/Dryer Hookups Refinished Floors No

Appliances Provided Stove and refrigerator

Remarks:

The apartment is in good condition but not upgraded in terms air condition and kitchen appliances. The cabinets and countertops are still serviceable. The apartment has a second level balcony overlooking Jackson Square. There are medallions above the light fixtures in the living area. Tenant owns the chandeliers.

2010 Rent Study lower Pontalba.doc 98 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Conclusion

The tenant in 535-2 St. Ann owns the lighting fixtures in the apartment. It is assumed, based on the condition of the apartment, a quality level of replacement will be furnished if the tenant vacates. The rear balcony walkway is enclosed.

Based on the following analysis, the rent range is from $1.52 per square foot to $1.65 per square foot. All comparables were adjusted and given some weight in the final value conclusion. Based on the quality and quantity of information provided, the market rent for the subject apartment is $2,320 (R) per month or $1.60 per square foot.

Market Rent (As is): $2,320.00

2010 Rent Study lower Pontalba.doc 99 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Adjustment Grid - Unit 535 St. Ann - Lower Pontalba 2nd Floor Apartment

Subject Comp. #4 Comp. #5 Comp. #6 Location Unit 535/2nd Floor 632 1034 1140 St. Ann St. Peter Royal Decatur N/A Leased Leased Leased New Orleans New Orleans New Orleans New Orleans

Lease Date N/A 6/14/2009 6/15/2009 6/19/2009 Rent with pass thru's $1,970 $2,450 $1,650 $2,700 Unit Size S/F 1,450 1,614 1,050 1,650 # Baths 2.0 1.0 1.0 1.5 Condition Good Good Good Good Central Air/Heat No Yes Yes Yes Quality/Age of Finishes Avg. Avg. Avg. Good Rent per S/F $1.36 $1.52 $1.57 $1.64

Offering vs Leased 0% 0% 0% $1.52 $1.57 $1.64

Location 5% 10% 5%

Size 0% 0% 0%

Features -5% -5% 0%

Quality/Age of Finishes 0% 0% -5%

Condition 0% 0% 0%

Total Adjustments: 0% 5% 0%

$1.52 $1.65 $1.64

Subj. by Comparison: Conclusion per S/F $1.60 Conclusion $2,320 Market Rent Rounded $2,320

2010 Rent Study lower Pontalba.doc 100 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

FLOOR PLAN

2010 Rent Study lower Pontalba.doc 101 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

535 St. Ann Street 3rd Floor New Orleans, La. Inspected April 8, 2010

3rd Floor Balcony

2010 Rent Study lower Pontalba.doc 102 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

UNIT PROFILE 535 ST. ANN – 3rd FLOOR

Tenant

Apartment Condition Average

Quality/Age of Finishes: Fair

Size – Square Feet 1,450 Square Feet

Number of Rooms and Bathrooms 5 Rooms - 2 Baths

Length of Occupancy 30 Years +/-

Current Rent: $1,750.00/Month

Pass Through’s per Month $ 95.00/Month

Total Rent Paid $1,845.00/Month

Unit Rent per Square Foot $1.27

Amenities:

View: Jackson Square Central Air & Heat No Dishwasher No Washer/Dryer Hookup Refinished Floors No

Appliances Provided: Stove (non functioning) and refrigerator

Owned by Tenant: Chandeliers

Remarks:

The tenant has been a resident for over 30 years with virtually no ongoing maintenance. There is some deferred maintenance and older average quality finishes. The chandeliers are the tenants, which enhance the look of the apartment. The rear balcony is enclosed with no window penetration for exterior light. The bathrooms have older finishes – one has red shag carpeting. The kitchen is small and cluttered with no front on the oven. The tenant smells gas from the stove. The apartment has a third level balcony overlooking Jackson Square.

2010 Rent Study lower Pontalba.doc 103 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Conclusion

Long term tenant – primary residence. Needs upgrading.

Based on the following analysis, the rent range is from $0.87 per square foot to $1.24 per square foot. The unit is on the 3rd floor. This would tend to place the market rent toward the lower end of the adjusted range. Based on the quality and quantity of information, the market rent for the subject apartment is $1,670 per month or $1.15 per square foot.

Market Rent (As is): $1,670.00 (R)

2010 Rent Study lower Pontalba.doc 104 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Adjustment Grid - Unit 535 St. Ann - Lower Pontalba 3rd Floor Apartment

Subject Comp.#1 Comp. #2 Comp. #3 Location Unit 535/3rd Floor 1131 543 708 St. Ann Decatur Gov. Nichols Orleans N/A Leased Leased Leased New Orleans New Orleans New Orleans New Orleans

Lease Date N/A 8/10/2009 1/12/2010 2/10/2010 Rent with pass thru's $1,845 $1,300 $1,750 $825 Unit Size S/F 1,450 1,100 1,400 903 # Baths 2.0 1.0 1.0 1.0 Condition Avg. Good Good Avg. Quality/Age Finishes Fair Avg. Avg. Fair Central Air/Heat No No Yes Yes Rent per S/F $1.27 $1.18 $1.25 $0.91

Offering vs Leased 0% 0% 0% $1.18 $1.25 $0.91

Location 5% 5% 5%

Size 0% 0% -15%

Features 10% 0% 5%

Quality/Age of Finishes -5% -5% 0%

Condition -5% -5% 0%

Total Adjustments: 5% -5% -5%

$1.24 $1.19 $0.87

Subj. by Comparison: Conclusion per S/F $1.15 Conclusion $1,668 Market Rent Rounded $1,670

2010 Rent Study lower Pontalba.doc 105 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

FLOOR PLANS

2010 Rent Study lower Pontalba.doc 106 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

539 St. Ann Street 2ND Floor New Orleans, La. Inspected April 9, 2010

2nd Floor Balcony

2010 Rent Study lower Pontalba.doc 107 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

UNIT PROFILE 539 ST. ANN – 2ND FLOOR

Tenant

Apartment Condition Good

Quality/Age of Finishes: Average

Size – Square Feet 1,450 Square Feet

Number of Rooms and Bathrooms 5 Rooms – 2 Baths

Length of Occupancy Unknown

Current Rent: $2.070.00/Month

Pass Through’s per Month $ 70.00/Month

Total Rent Paid $2,070.00/Month

Unit Rent per Square Foot $1.43

Amenities:

View: Jackson Square Central Air & Heat Yes Dishwasher No Washer/Dryer Yes Refinished Floors Yes

Appliances Provided: Stove, refrigerator, icemaker, and microwave.

Remarks:

The finishes are under 5 years old. There are cove moldings and an unusual central air and heat duct work in the ceiling moldings. The hardwood floors are in good condition and the side balcony has been enclosed. The apartment has a second level balcony overlooking Jackson Square.

2010 Rent Study lower Pontalba.doc 108 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Conclusion

The apartment is in good condition with newer, average quality finishes.

Based on the following analysis, the rent range is from $1.59 per square foot to $1.73 per square foot. All comparables were adjusted and given some weight in the final value conclusion. Based on the quality and quantity of information, the market rent for the subject apartment is $2,390 per month or $1.65 per square foot.

Market Rent (As is): $2,390.00 (R)

2010 Rent Study lower Pontalba.doc 109 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Adjustment Grid - Unit 539 St. Ann - Lower Pontalba 2nd Floor Apartment

Subject Comp. #4 Comp. #5 Comp. #6 Location Unit 539/2nd Floor 632 1034 1140 St. Ann St. Peter Royal Decatur N/A Leased Leased Leased New Orleans New Orleans New Orleans New Orleans

Lease Date N/A 6/14/2009 6/15/2009 6/19/2009 Rent with pass thru's $1,970 $2,450 $1,650 $2,700 Unit Size S/F 1,450 1,614 1,050 1,650 # Baths 2.0 1.0 1.0 1.5 Condition Good Good Good Good Central Air/Heat Yes Yes Yes Yes Quality/Age of Finishes Avg. Avg. Avg. Good Rent per S/F $1.36 $1.52 $1.57 $1.64

Offering vs Leased 0% 0% 0% $1.52 $1.57 $1.64

Location 5% 10% 5%

Size 0% 0% 0%

Features 0% 0% 5%

Age/Age of Finishes 0% 0% -5%

Condition 0% 0% 0%

Total Adjustments: 5% 10% 5%

$1.59 $1.73 $1.72

Subj. by Comparison: Conclusion per S/F $1.65 Conclusion $2,393 Market Rent Rounded $2,390

2010 Rent Study lower Pontalba.doc 110 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

FLOOR PLAN

2010 Rent Study lower Pontalba.doc 111 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

539 St. Ann Street 3rd Floor New Orleans, La. Inspected April 9, 2010

3rd Floor Balcony

2010 Rent Study lower Pontalba.doc 112 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

UNIT PROFILE 539 ST. ANN – 3rd FLOOR

Tenant

Apartment Condition Good

Quality/Age of Finishes: Average

Size – Square Feet 1,450 Square Feet

Number of Rooms and Bathrooms 5 Rooms – 2 Baths

Length of Occupancy Unknown

Current Rent: $2.000.00/Month

Pass Through’s per Month $ 95.00/Month

Total Rent Paid $2,095.00/Month

Unit Rent per Square Foot $1.45

Amenities:

View: Jackson Square Central Air & Heat Yes Dishwasher No Washer/Dryer Yes Refinished Floors No

Appliances Provided: Stove, refrigerator, dishwasher, icemaker, and microwave.

Remarks:

The finishes are approximately 10 years old. The rear walkway has been enclosed. The rear bathroom has a tub. The finishes are average quality. There are crown moldings and ceiling medallions. The hardwood floors have not been re-finished. The apartment has a narrow third level balcony overlooking Jackson Square.

2010 Rent Study lower Pontalba.doc 113 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Conclusion

The apartment is in good condition with newer finishes.

Based on the following analysis, the rent range is from $1.60 per square foot to $1.73 per square foot. The unit is on the third floor. This would tend to place the unit rent toward the lower end of the adjusted range. Based on the quality and quantity of information, the market rent for the subject apartment is $2,320 per month or $1.60 per square foot.

Market Rent (As is): $2,320.00 (R)

2010 Rent Study lower Pontalba.doc 114 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Adjustment Grid - Unit 539 St. Ann - Lower Pontalba 3rd Floor Apartment

Subject Comp. #4 Comp. #5 Comp. #6 Location Unit 539/3rd Floor 632 1034 1140 St. Ann St. Peter Royal Decatur N/A Leased Leased Leased New Orleans New Orleans New Orleans New Orleans

Lease Date N/A 6/14/2009 6/15/2009 6/19/2009 Rent with pass thru's $2,070 $2,450 $1,650 $2,700 Unit Size S/F 1,450 1,614 1,050 1,650 # Baths 2.0 1.0 1.0 1.5 Condition Good Good Good Good Central Air/Heat Yes Yes Yes Yes Quality/Age of Finishes Avg. Avg. Avg. Good Rent per S/F $1.43 $1.52 $1.57 $1.64

Offering vs Leased 0% 0% 0% $1.52 $1.57 $1.64

Location 5% 10% 5%

Size 0% 0% 0%

Features 0% 0% 5%

Quality/Age of Finishes 0% 0% -5%

Condition 0% 0% 0%

Total Adjustments: 5% 10% 5%

$1.60 $1.73 $1.72

Subj. by Comparison: Conclusion per S/F $1.60 Conclusion $2,320 Market Rent Rounded $2,320

2010 Rent Study lower Pontalba.doc 115 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

FLOOR PLAN

2010 Rent Study lower Pontalba.doc 116 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

541 St. Ann Street Townhouse New Orleans, La. Inspected April 8, 2010

2nd Floor Balcony

2010 Rent Study lower Pontalba.doc 117 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

UNIT PROFILE 541 ST. ANN – Townhouse

Tenant

Apartment Condition Excellent

Quality/ Age of Finishes Excellent

Size – Square Feet 1,200 Square Feet

Number of Rooms and Bathrooms 3 Rooms – 1 ½ Baths

Length of Occupancy Unknown

Current Rent: $2,000.00/Month

Pass Through’s per Month $ 80.00/Month

Total Rent Paid $2,080.00/Month

Unit Rent per Square Foot $1.71 Amenities:

View: Jackson Square Central Air & Heat Yes Dishwasher Yes Washer/Dryer Yes Refinished Floors Yes

Appliances Provided: Stove, refrigerator, dishwasher, and washer and dryer.

Other: Chandeliers are owned by tenant.

Remarks:

Beautiful townhouse apartment in excellent condition with new finishes. The entrance areas have murals on the wall. The apartment has crown moldings and medallions and two balconies on the second and third floor. The private entrance is an extra amenity.

2010 Rent Study lower Pontalba.doc 118 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Conclusions

The 541 St. Ann Townhouse unit is well maintained with newer, high quality finishes.

Based on the following analysis, the rent range is from $1.87 per square foot to $2.17 per square foot. All comparables were adjusted and given some weight in the final value conclusion. Based quality and quantity of information provided, the market rent for the subject apartment is $2,280 per month or $1.90 per square foot.

Market Rent (As is): $2,280.00 (R)

Condition before renovation is unknown. Rent prior to renovation for a unit in Average/Average condition would be estimated at $1.30 per sq. ft. based on unit 527-2 St. Ann, or $1,560 per month.

2010 Rent Study lower Pontalba.doc 119 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Adjustment Grid - Unit 541 St. Ann - Lower Pontalba Townhouse

Subject Location 541 Comp. #7 Comp. #8 Comp. #9 St. Ann 712 526 920 Townhouse St. Philip Madison Conti N/A Leased Leased Leased New Orleans New Orleans New Orleans New Orleans

Lease Date N/A 1/15/2010 12/30/2008 2/4/2009 Rent with pass thru's $1,930 $1,700 $2,274 $1,700 Unit Size S/F 1,200 900 1,400 940 # Baths 1.5 1.0 2.0 1.0 Condition Excl Excl Excl Excl Quality/Age of Finishes Excl Good Excl Avg. Central Air/Heat Yes Yes Yes Yes Rent per S/F $1.61 $1.89 $1.62 $1.81

Offering vs Leased 0% 0% 0% $1.89 $1.62 $1.81

Location 10% 5% 15%

Size -10% 0% -10%

Features (Private Entrance-2 Balc.) 10% 10% 5%

Quality/Age of Finishes 5% 0% 10%

Condition 0% 0% 0%

Total Adjustments: 15% 15% 20%

Subj. by Comparison: $2.17 $1.87 $2.17

Conclusion per S/F $1.90 Conclusion $2,280 Market Rent $2,280

2010 Rent Study lower Pontalba.doc 120 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

½ Bath

Living Room

Bath

Bedroom Bedroom

2010 Rent Study lower Pontalba.doc 121

Appraisal Report Lower Pontalba Apartments., New Orleans, La.

543 St. Ann Street 2nd Floor New Orleans, La. Inspected April 9, 2010

2nd Floor Wrap Around Balcony

2010 Rent Study lower Pontalba.doc 122 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

UNIT PROFILE 543 ST. ANN – 2ND FLOOR

Tenant

Apartment Condition Good

Quality/Age of Finishes: Average quality new appliances

Size – Square Feet 1,530 Square Feet

Number of Rooms and Bathrooms 3 Rooms – 1 1/2 Baths

Length of Occupancy 1 Year +

Current Rent: $2,100.00/Month

Pass Through’s per Month $ 77.00/Month

Total Rent Paid $2,177.00/Month

Unit Rent per Square Foot $1.42

Amenities:

View: Chartres and Jackson Square Central Air & Heat Yes Dishwasher Yes Washer/Dryer No Refinished Floors Yes

Appliances by Tenant: Stove, refrigerator, and dishwasher

Other: The Chandeliers are owned by tenant

Remarks:

This a prime 2nd floor corner apartment with wrap balcony over looking the square and Chartres Street. According to the tenant $60,000 was spent on renovation at time of leasing. The floors have been refinished, new appliances, countertops and cabinets were installed in the kitchen. The apartment has medallions showcasing the tenant’s chandeliers.

Tenant complains that water heater is too small – not enough water to fill a bathtub. The apartment is above a restaurant/bar creating a high noise level over and above street noise. Before renovation, apartment was reported as being in average condition.

2010 Rent Study lower Pontalba.doc 123 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Conclusion

The tenant in 543-2 St. Ann owns the appliances and the light fixtures in the apartment. It is assumed, based on the condition of the apartment, a quality level of replacement will be furnished if the tenant vacates.

Based on the following analysis, the rent range is from $1.60 per square foot to $1.72 per square foot. All comparables were adjusted and given some weight in the final value conclusion. The adjustments take the large wrap balcony and recent renovation into consideration. Based on the quality and quantity of information, the market rent for the subject apartment is $2,600 per month or $1.70 per square foot.

Market Rent (As is): $2,600.00 (R)

Prior to renovation as per statement of tenant: Average Condition ($1.30 per S/F +/-): $1,990.00 (R)

2010 Rent Study lower Pontalba.doc 124 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Adjustment Grid - Unit 543 St. Ann - Lower Pontalba 2nd Floor Apartment

Subject Comp. #4 Comp. #5 Comp. #6 Location Unit 543/2nd Floor 632 1034 1140 St. Ann St. Peter Royal Decatur N/A Leased Leased Leased New Orleans New Orleans New Orleans New Orleans

Lease Date N/A 6/14/2009 6/15/2009 6/19/2009 Rent with pass thru's $2,177 $2,450 $1,650 $2,700 Unit Size S/F 1,530 1,614 1,050 1,650 # Baths 1.5 1.0 1.0 1.5 Condition Good Good Good Good Central Air/Heat Yes Yes Yes Yes Quality/Age of Finishes Avg. Avg. Avg. Good Rent per S/F $1.42 $1.52 $1.57 $1.64

Offering vs Leased 0% 0% 0% $1.52 $1.57 $1.64

Location 5% 10% 5%

Size 0% -5% 0%

Features 0% 0% 5%

Quality/Age of Finishes 0% 0% -5%

Condition 0% 0% 0%

Total Adjustments: 5% 5% 5%

$1.60 $1.65 $1.72

Subj. by Comparison: Conclusion per S/F $1.70 Conclusion $2,601 Rent Value $2,600

2010 Rent Study lower Pontalba.doc 125 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

FLOOR PLAN

2010 Rent Study lower Pontalba.doc 126 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

543 St. Ann Street 3rd Floor New Orleans, La. Inspected April 13, 2010

3rd Floor Wrap Around Balcony

2010 Rent Study lower Pontalba.doc 127 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

UNIT PROFILE 543 ST. ANN – 3rd FLOOR

Tenant

Apartment Condition Good

Quality/Age of Finishes: Good

Size – Square Feet 1,530 Square Feet

Number of Rooms and Bathrooms 3 Rooms – 1 ½ Baths

Length of Occupancy 9 Years +/-

Current Rent: $1,950.00/Month

Pass Through’s per Month $ 102.00/Month

Total Rent Paid $2,052.00/Month

Unit Rent per Square Foot $1.34

Amenities:

View: Decatur and Jackson Square Central Air & Heat Yes Dishwasher No Washer/Dryer Yes Refinished Floors Yes

Appliances Provided: Stove, refrigerator, and washer/dryer.

Tenant Owned: Chandeliers

Remarks:

The Lessor renovated the apartment in 2001 or 2002 with upgraded kitchen and appliances, central air and heat and updated bathroom with good quality cabinetry. The floors have been refinished and the rear balcony enclosed. The unit is in very good condition.

2010 Rent Study lower Pontalba.doc 128 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Conclusion

Based on the following analysis, the rent range is from $1.64 per square foot to $1.73 per square foot. This unit is on the 3rd. floor. The location would tend to set the rent toward the bottom of the adjusted range. Based on the quality and quantity of information provided, the market rent for the subject apartment is $2,525 per month or $1.65 per square foot.

Market Rent (As is): $2,525.00 (R)

2010 Rent Study lower Pontalba.doc 129 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Adjustment Grid - Unit 543 St. Ann - Lower Pontalba 3rd Floor Apartment

Subject Comp. #4 Comp. #5 Comp. #6 Location Unit 543/2nd Floor 632 1034 1140 St. Ann St. Peter Royal Decatur N/A Leased Leased Leased New Orleans New Orleans New Orleans New Orleans

Lease Date N/A 6/14/2009 6/15/2009 6/19/2009 Rent with pass thru's $2,177 $2,450 $1,650 $2,700 Unit Size S/F 1,530 1,614 1,050 1,650 # Baths 1.5 1.0 1.0 1.5 Condition Good Good Good Good Central Air/Heat Yes Yes Yes Yes Quality/Age of Finishes Good Avg. Avg. Good Rent per S/F $1.42 $1.52 $1.57 $1.64

Offering vs Leased 0% 0% 0% $1.52 $1.57 $1.64

Location 5% 10% 5%

Size 0% -5% 0%

Features 0% 0% -5%

Quality/Age of Finishes 5% 5% 0%

Condition 0% 0% 0%

Total Adjustments: 10% 10% 0%

$1.67 $1.73 $1.64

Subj. by Comparison: Conclusion per S/F $1.65 Conclusion $2,525 Market Rent Rounded $2,525

2010 Rent Study lower Pontalba.doc 130 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

2010 Rent Study lower Pontalba.doc 131

Appraisal Report Lower Pontalba Apartments., New Orleans, La.

806 Chartres Street 2ND Floor New Orleans, La. Inspected April 9, 2010

2nd Floor Balcony

2010 Rent Study lower Pontalba.doc 132 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

UNIT PROFILE 806 Chartres – 2ND FLOOR

Tenant Museum Apartment

Apartment Condition Good

Quality/Age of Finishes: Average Older

Size – Square Feet 1,200 Square Feet

Number of Rooms and Bathrooms 3 Rooms – 1 ½ Baths

Length of Occupancy N/A

Current Rent: N/A

Pass Through’s per Month N/A

Total Rent Paid N/A

Unit Rent per Square Foot N/A

Amenities:

View: Chartres Street Central Air & Heat Yes Dishwasher No Washer/Dryer Yes Refinished Floors Yes

Appliances Owned by Museum: Stove, refrigerator, microwave, and washer and dryer.

Other: Chandeliers

Remarks:

The Lessor uses this apartment. The unit has refinished floors and some carpet. The unit is in good condition. Apartment has balcony overlooking Chartres Street.

2010 Rent Study lower Pontalba.doc 133 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Conclusion

Based on the following analysis, the rent range is from $1.52 per square foot to $1.64 per square foot. All comparables were adjusted and given some weight in the final value conclusion. Based on the quality and quantity of information, the market rent for the subject apartment is $1,920 per month or $1.60 per square foot.

Market Rent (As is): $1,920.00

2010 Rent Study lower Pontalba.doc 134 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Adjustment Grid - Unit 806 Chartres - Lower Pontalba 2nd Floor Apartment

Subject Comp. #4 Comp. #5 Comp. #6 Location Unit 806/2nd Floor 632 1034 1140 Chartres St. Peter Royal Decatur N/A Leased Leased Leased New Orleans New Orleans New Orleans New Orleans

Lease Date N/A 6/14/2009 6/15/2009 6/19/2009 Rent with pass thru's N/A $2,450 $1,650 $2,700 Unit Size S/F 1,200 1,614 1,050 1,650 # Baths 1.5 1.0 1.0 1.5 Condition Good Good Good Good Central Air/Heat Yes Yes Yes Yes Quality/Age of Finishes Avg. Avg. Avg. Good Rent per S/F N/A $1.52 $1.57 $1.64

Offering vs Leased 0% 0% 0% $1.52 $1.57 $1.64

Location 0% 5% 0%

Size 0% 0% 0%

Features 0% 0% 5%

Quality/Age of Finishes 0% 0% -5%

Condition 0% 0% 0%

Total Adjustments: 0% 5% 0%

$1.52 $1.65 $1.64

Subj. by Comparison: Conclusion per S/F $1.60 Conclusion $1,920 Market Rent $1,920

2010 Rent Study lower Pontalba.doc 135 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

FLOOR PLAN

2010 Rent Study lower Pontalba.doc 136 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

806 Chartres Street 3rd Floor New Orleans, La. Inspected April 9, 2010

3rd Floor Balcony

2010 Rent Study lower Pontalba.doc 137 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

UNIT PROFILE 806 Chartres – 3rd FLOOR

Tenant

Apartment Condition Average

Quality/Age of Finishes: Average/Older

Size – Square Feet 1,200 Square Feet

Number of Rooms and Bathrooms 3 Rooms – 1 ½ Baths

Length of Occupancy Unknown

Current Rent: $1,650.00/Month

Pass Through’s per Month $ 80.00/Month

Total Rent Paid $1,730.00/Month

Unit Rent per Square Foot $1.44

Amenities:

View: Chartres Street Central Air & Heat No Dishwasher Yes Washer/Dryer Yes Refinished Floors No

Appliances Provided: Stove, refrigerator, dishwasher, and washer/dryer.

Remarks:

The finishes are in average condition and approximately 20 years old. The apartment is well maintained. The rear balcony is enclosed. There are two bedrooms in the rear wing along with ½ bath and laundry room with washer/dryer.

There is no central air and heat. The tenant was not present during inspection.

2010 Rent Study lower Pontalba.doc 138 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Conclusion

Based on the following analysis, the adjusted comparables range between $1.19 per square foot and $1.32 per square foot. The unit is on the 3rd floor. The market rent would therefore tend to fall at the lower end of the adjusted range. Based on the quality and quantity of information, the market rent for the subject apartment is $1,440 per month or $1.20 per square foot.

Market Rent (As is): $1,440.00

2010 Rent Study lower Pontalba.doc 139 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Adjustment Grid - Unit 806 Chartres - Lower Pontalba 3rd Floor Apartment

Subject Comp.#1 Comp. #2 Comp. #3 Location Unit 806/3rd Floor 1131 543 708 Chartres Decatur Gov. Nichols Orleans N/A Leased Leased Leased New Orleans New Orleans New Orleans New Orleans

Lease Date N/A 8/10/2009 1/12/2010 2/10/2010 Rent with pass thru's $1,730 $1,300 $1,750 $1,200 Unit Size S/F 1,200 1,100 1,400 950 # Baths 2.0 1.0 1.0 1.0 Condition Avg. Good Good Avg. Quality/Age Finishes Avg. Avg. Avg. Avg. Central Air/Heat No No Yes Yes Rent per S/F $1.44 $1.18 $1.25 $1.26

Offering vs Leased 0% 0% 0% $1.18 $1.25 $1.26

Location 0% 0% 0%

Size 0% 0% 0%

Features 10% 0% 5%

Quality/Age of Finishes 0% 0% 0%

Condition -5% -5% 0%

Total Adjustments: 5% -5% 5%

$1.24 $1.19 $1.32

Subj. by Comparison: Conclusion per S/F $1.20 Conclusion $1,440 Market Rent Rounded $1,440

2010 Rent Study lower Pontalba.doc 140 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

FLOOR PLAN

2010 Rent Study lower Pontalba.doc 141 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

810 Chartres Street 2ND Floor New Orleans, La. Inspected April 9, 2010

2nd Floor Balcony

2010 Rent Study lower Pontalba.doc 142 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

UNIT PROFILE 810 Chartres – 2ND FLOOR

Tenant

Apartment Condition Good

Quality/Age of Finishes: Average Quality (Over Ten Years)

Size – Square Feet 1,200 Square Feet

Number of Rooms and Bathrooms 3 Rooms – 1 ½ Baths

Length of Occupancy Unknown

Current Rent: $1,850.00/Month

Pass Through’s per Month $ 65.00/Month

Total Rent Paid $1,905.00/Month

Unit Rent per Square Foot $1.59

Amenities:

View: Chartres Street Central Air & Heat Yes Dishwasher Yes Washer/Dryer Yes Refinished Floors Yes

Appliances Provided: Stove, refrigerator, dishwasher, and washer/dryer.

Remarks:

Apartment is in good condition with balcony overlooking Chartres Street. The finishes are average quality and appear to be about 10+ years old.

2010 Rent Study lower Pontalba.doc 143 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Conclusion

Based on the following analysis, the rent range is from $1.52 per square foot to $1.65per square foot. All comparables were adjusted and given some weight in the final value conclusion. Based on the quality and quantity of information, the market rent for the subject apartment is $1,920 per month or $1.60 per square foot.

Market Rent (As is): $1,920.00

2010 Rent Study lower Pontalba.doc 144 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Adjustment Grid - Unit 810 Chartres - Lower Pontalba 2nd Floor Apartment

Subject Comp. #4 Comp. #5 Comp. #6 Location Unit 810/2nd Floor 632 1034 1140 Chartres St. Peter Royal Decatur N/A Leased Leased Leased New Orleans New Orleans New Orleans New Orleans

Lease Date N/A 6/14/2009 6/15/2009 6/19/2009 Rent with pass thru's N/A $2,450 $1,650 $2,700 Unit Size S/F 1,200 1,614 1,050 1,650 # Baths 1.5 1.0 1.0 1.5 Condition Good Good Good Good Central Air/Heat Yes Yes Yes Yes Quality/Age of Finishes Avg. Avg. Avg. Good Rent per S/F N/A $1.52 $1.57 $1.64

Offering vs Leased 0% 0% 0% $1.52 $1.57 $1.64

Location 0% 5% 0%

Size 0% 0% 0%

Features 0% 0% 5%

Quality/Age of Finishes 0% 0% -5%

Condition 0% 0% 0%

Total Adjustments: 0% 5% 0%

$1.52 $1.65 $1.64

Subj. by Comparison: Conclusion per S/F $1.60 Conclusion $1,920 Market Value $1,920

2010 Rent Study lower Pontalba.doc 145 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

2010 Rent Study lower Pontalba.doc 146 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

810 Chartres Street 3rd Floor New Orleans, La. Inspected April 9, 2010

3rd Floor Balcony

2010 Rent Study lower Pontalba.doc 147 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

UNIT PROFILE 810 Chartres – 3rd FLOOR

Tenant

Apartment Condition: Good

Quality/Age of Finishes: Recently Renovated – Average Quality

Size – Square Feet 1,200 Square Feet

Number of Rooms and Bathrooms 3 Rooms – 1 ½ Baths

Length of Occupancy Unknown

Current Rent: $1,650.00/Month

Pass Through’s per Month $ 80.00/Month

Total Rent Paid $1,730.00/Month

Unit Rent per Square Foot $1.44

Amenities:

View: Chartres Central Air & Heat Yes Dishwasher No Washer/Dryer Hookups Refinished Floors Yes

Appliances Provided: Stove, refrigerator, microwave.

Remarks:

The apartment was recently renovated with refinished hardwood floors, ceiling fans, and kitchen cabinets and appliances.

2010 Rent Study lower Pontalba.doc 148 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Conclusion

The tenant in 810-3 Chartres Street was recently renovated and in good condition.

Based on the following analysis, the rent range is from $1.52 per square foot to $1.65 per square foot. The unit is on the 3rd floor. This would tend to place the market rent near the lower end of the adjusted range. Based on the quality and quantity of information d, the market rent for the subject apartment is $1,860 per month or $1.55 per square foot.

Market Rent (As is): $1,860.00

2010 Rent Study lower Pontalba.doc 149 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Adjustment Grid - Unit 810 Chartres - Lower Pontalba 3rd Floor Apartment

Subject Comp. #4 Comp. #5 Comp. #6 Location Unit 810/3rd Floor 632 1034 1140 Chartres St. Peter Royal Decatur N/A Leased Leased Leased New Orleans New Orleans New Orleans New Orleans

Lease Date N/A 6/14/2009 6/15/2009 6/19/2009 Rent with pass thru's N/A $2,450 $1,650 $2,700 Unit Size S/F 1,200 1,614 1,050 1,650 # Baths 1.5 1.0 1.0 1.5 Condition Good Good Good Good Central Air/Heat Yes Yes Yes Yes Quality/Age of Finishes Avg. Avg. Avg. Good Rent per S/F $1.44 $1.52 $1.57 $1.64

Offering vs Leased 0% 0% 0% $1.52 $1.57 $1.64

Location 0% 5% 0%

Size 0% 0% 0%

Features 0% 0% 5%

Quality/Age of Finishes 0% 0% -5%

Condition 0% 0% 0%

Total Adjustments: 0% 5% 0%

$1.52 $1.65 $1.64

Subj. by Comparison: Conclusion per S/F $1.55 Conclusion $1,860 Market Rent $1,860

2010 Rent Study lower Pontalba.doc 150 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

FLOOR PLAN

2010 Rent Study lower Pontalba.doc 151 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

807 Decatur Street 2ND Floor New Orleans, La. Inspected April 13, 2010

2nd Floor Balcony

APARTMENT NOT INSPECTED Dog on Premises

2010 Rent Study lower Pontalba.doc 152 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

UNIT PROFILE 807 DECATUR – 2ND FLOOR

Tenant

Apartment Condition Good

Quality/ Age of Finishes Assumed Average

Size – Square Feet 1,200 Square Feet

Number of Rooms and Bathrooms 3 Rooms – 1 Baths

Length of Occupancy Unknown13 Years +/-

Current Rent: $1,850.00/Month

Pass Through’s per Month $ 55.00/Month

Total Rent Paid $1,905.00/Month

Unit Rent per Square Foot $1.59

Amenities:

View: Decatur and Jackson Square Central Air & Heat Yes Dishwasher Unknown Washer/Dryer Unknown Refinished Floors Unknown

Appliances Provided: Assumed stove and refrigerator

Remarks:

We did not inspect the apartment. View from hallway indicates the apartment is probably in good condition. The apartment has central air and heat. The assumption is that the finishes are average quality and the appliances are furnished. The drawback to this apartment is the odor entering the building from the adjacent restaurant. This problem needs to be addressed to have marketable apartments in this section of the building.

2010 Rent Study lower Pontalba.doc 153 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Conclusion

Based on the following analysis, the rent range is from $1.52 per square foot to $1.65 per square foot. All comparables were adjusted and given some weight in the final value conclusion. Based on the quality and quantity of information provided, the market rent for the subject apartment is $1,920 per month or $1.60 per square foot.

Market Rent (As is): $1,920.00

2010 Rent Study lower Pontalba.doc 154 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Adjustment Grid - Unit 811 Decatur - Lower Pontalba 2nd Floor Apartment

Subject Comp. #4 Comp. #5 Comp. #6 Location Unit 811/2nd Floor 632 1034 1140 Chartres St. Peter Royal Decatur N/A Leased Leased Leased New Orleans New Orleans New Orleans New Orleans

Lease Date N/A 6/14/2009 6/15/2009 6/19/2009 Rent with pass thru's $1,850 $2,450 $1,650 $2,700 Unit Size S/F 1,200 1,614 1,050 1,650 # Baths 1.0 1.0 1.0 1.5 Condition Good Good Good Good Central Air/Heat Yes Yes Yes Yes Quality/Age of Finishes Avg. Assumed Avg. Avg. Good Rent per S/F $1.59 $1.52 $1.57 $1.64

Offering vs Leased 0% 0% 0% $1.52 $1.57 $1.64

Location 0% 5% 0%

Size 0% 0% 0%

Features 0% 0% 5%

Quality/Age of Finishes 0% 0% -5%

Condition 0% 0% 0%

Total Adjustments: 0% 5% 0%

$1.52 $1.65 $1.64

Subj. by Comparison: Conclusion per S/F $1.60 Conclusion $1,920 Market Rent $1,920

2010 Rent Study lower Pontalba.doc 155 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

FLOOR PLAN

2010 Rent Study lower Pontalba.doc 156 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

807 Decatur Street 3rd Floor New Orleans, La. Inspected April 13, 2010

3rd Floor Balcony

Living Room

2010 Rent Study lower Pontalba.doc 157 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

UNIT PROFILE 807 DECATUR – 3rd FLOOR

Tenant Vacant

Apartment Condition Average

Condition/Age of Finishes Average

Size – Square Feet 1,200 Square Feet

Number of Rooms and Bathrooms 3 Rooms – 1 Bath

Length of Occupancy N/A

Current Projected Rent: $1,650.00/Month

Projected Pass Through’s per Month $ 80.00/Month

Total Rent Paid $1,730.00/Month

Unit Rent per Square Foot $1.44

Amenities:

View: Decatur Central Air & Heat No Dishwasher Yes Washer/Dryer No Refinished Floors Yes

Appliances Provided: Stove, refrigerator, and dishwasher

Other: Older carpet and inexpensive cabinets

Remarks:

This is an average quality apartment with average finishes. The drawback to this apartment is the odor entering the building from the adjacent restaurant. This problem needs to be addressed to have marketable apartments in this section of the building.

2010 Rent Study lower Pontalba.doc 158 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Conclusion

Based on the following analysis, the rent range is from $1.19 per square foot to $1.32 per square foot. The unit is on the 3rd floor. Market rent would most likely fall to the lower end of the adjusted range. Based on the quality and quantity of information provided, the market rent for the subject apartment is $1,440 per month or $1.20 per square foot.

Market Rent (As is): $1,440.00

2010 Rent Study lower Pontalba.doc 159 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Adjustment Grid - Unit 807 Decatur - Lower Pontalba 3rd Floor Apartment

Subject Comp.#1 Comp. #2 Comp. #3 Location Unit 806/3rd Floor 1131 543 708 Chartres Decatur Gov. Nichols Orleans N/A Leased Leased Leased New Orleans New Orleans New Orleans New Orleans

Lease Date N/A 8/10/2009 1/12/2010 2/10/2010 Rent with pass thru's $1,730 $1,300 $1,750 $1,200 Unit Size S/F 1,200 1,100 1,400 950 # Baths 2.0 1.0 1.0 1.0 Condition Avg. Good Good Avg. Quality/Age Finishes Avg. Avg. Avg. Avg. Central Air/Heat No No Yes Yes Rent per S/F $1.44 $1.18 $1.25 $1.26

Offering vs Leased 0% 0% 0% $1.18 $1.25 $1.26

Location 0% 0% 0%

Size 0% 0% 0%

Features 10% 0% 5%

Quality/Age of Finishes 0% 0% 0%

Condition -5% -5% 0%

Total Adjustments: 5% -5% +5%

$1.24 $1.19 $1.32

Subj. by Comparison: Conclusion per S/F $1.20 Conclusion $1,440 Market Rent $1,440

2010 Rent Study lower Pontalba.doc 160 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

2010 Rent Study lower Pontalba.doc 161

Appraisal Report Lower Pontalba Apartments., New Orleans, La.

811 Decatur Street 2ND Floor New Orleans, La. Inspected April 13, 2010

2nd Floor Balcony

NO INTERIOR PHOTOGRAPHS WERE USABLE DUE TO CAMERA FAILURE LAST APARTMENT INSPECTED

2010 Rent Study lower Pontalba.doc 162 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

UNIT PROFILE 811 DECATUR – 2ND FLOOR

Tenant

Apartment Condition Good

Quality/Age of Finishes Good

Size – Square Feet 1,200 Square Feet

Number of Rooms and Bathrooms 3 Rooms – 1 ½ Baths

Length of Occupancy 13 Years +/-

Current Rent: $1,750.00/Month

Pass Through’s per Month $ 55.00/Month

Total Rent Paid $1,850.00/Month

Unit Rent per Square Foot $1.54

Amenities:

View: Decatur Central Air & Heat Yes Dishwasher Yes Washer/Dryer Yes Refinished Floors Yes

Appliances Provided: Stove.

Other: Tenant owns refrigerator and provided dishwasher

Remarks:

The tenant renovated the apartment with high quality marble countertops in the kitchen and high quality marble bath. The apartment is in very good condition.

2010 Rent Study lower Pontalba.doc 163 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Conclusion

Based on the following analysis, the rent range is from $1.60 per square foot to $1.73 per square foot. All comparables were adjusted and given some weight in the final value conclusion. Based on the quality and quantity of information provided, the market rent for the subject apartment is estimated as $1,980 per month or $1.65 per square foot.

Market Rent (As is): $1,980.00

2010 Rent Study lower Pontalba.doc 164 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Adjustment Grid - Unit 811 Decatur - Lower Pontalba 2nd Floor Apartment

Subject Comp. #4 Comp. #5 Comp. #6 Location Unit 811/2nd Floor 632 1034 1140 Chartres St. Peter Royal Decatur N/A Leased Leased Leased New Orleans New Orleans New Orleans New Orleans

Lease Date N/A 6/14/2009 6/15/2009 6/19/2009 Rent with pass thru's $1,850 $2,450 $1,650 $2,700 Unit Size S/F 1,200 1,614 1,050 1,650 # Baths 1.0 1.0 1.0 1.5 Condition Good Good Good Good Central Air/Heat Yes Yes Yes Yes Quality/Age of Finishes Good Avg. Avg. Good Rent per S/F $1.54 $1.52 $1.57 $1.64

Offering vs Leased 0% 0% 0% $1.52 $1.57 $1.64

Location 0% 5% 0%

Size 0% 0% 0%

Features 0% 0% 5%

Quality/Age of Finishes 5% 5% 0%

Condition 0% 0% 0%

Total Adjustments: 5% 10% 5%

$1.60 $1.73 $1.72

Subj. by Comparison: Conclusion per S/F $1.65 Conclusion $1,980 Market Rent $1,980

2010 Rent Study lower Pontalba.doc 165 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

2010 Rent Study lower Pontalba.doc 166

Appraisal Report Lower Pontalba Apartments., New Orleans, La.

811 Decatur Street 3rd Floor New Orleans, La. Inspected April 13, 2010

3rd Floor Balcony

3

2010 Rent Study lower Pontalba.doc 167 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

UNIT PROFILE 811 DECATUR – 3rd FLOOR

Tenant

Apartment Condition Good

Quality/ Age of Finishes Average – Plain Vanilla

Size – Square Feet 1,200 Square Feet

Number of Rooms and Bathrooms 3 Rooms – 2 Baths

Length of Occupancy Unknown

Current Rent: $1,650.00/Month

Pass Through’s per Month $ 80.00/Month

Total Rent Paid $1,730.00/Month

Unit Rent per Square Foot $1.44

Amenities:

View: Decatur and Jackson Square Central Air & Heat Yes Dishwasher Yes Washer/Dryer Hookups Refinished Floors Yes

Appliances Provided: Stove, refrigerator, and microwave.

Remarks:

The apartment is a newer renovation in good condition with average quality plain vanilla finishes. The apartment has two full baths.

2010 Rent Study lower Pontalba.doc 168 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Conclusion

Based on the following analysis, the rent range is from $1.52 per square foot to $1.65 per square foot. The unit is on the 3rd floor. This would tend to set the estimated rent toward the lower end of the adjusted range. Based on the quality and quantity of information, the market rent for the subject apartment is $1,860 per month or $1.55 per square foot.

Market Rent (As is): $1,860.00

2010 Rent Study lower Pontalba.doc 169 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Adjustment Grid - Unit 811 Decatur - Lower Pontalba 3rd Floor Apartment

Subject Comp. #4 Comp. #5 Comp. #6 Location Unit 811/3rd Floor 632 1034 1140 Decatur St. Peter Royal Decatur N/A Leased Leased Leased New Orleans New Orleans New Orleans New Orleans

Lease Date N/A 6/14/2009 6/15/2009 6/19/2009 Rent with pass thru's $1,730 $2,450 $1,650 $2,700 Unit Size S/F 1,200 1,614 1,050 1,650 # Baths 1.0 1.0 1.0 1.5 Condition Good Good Good Good Central Air/Heat Yes Yes Yes Yes Quality/Age of Finishes Average Avg. Avg. Good Rent per S/F $1.44 $1.52 $1.57 $1.64

Offering vs Leased 0% 0% 0% $1.52 $1.57 $1.64

Location 0% 5% 0%

Size 0% 0% 0%

Features 0% 0% 5%

Quality/Age of Finishes 0% 0% -5%

Condition 0% 0% 0%

Total Adjustments: 0% 5% 0%

$1.52 $1.65 $1.64

Subj. by Comparison: Conclusion per S/F $1.55 Conclusion $1,860 Market Rent $1,860

2010 Rent Study lower Pontalba.doc 170 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

2010 Rent Study lower Pontalba.doc 171 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Bath

2010 Rent Study lower Pontalba.doc 172 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

FINAL ESTIMATED MARKET RENT CONCLUSION Market Rents are summarized in the following chart: Condition/ All finish quality Range of Rents Range of Rents Chartres and 2nd and 3rd floors included St. Ann Street Decatur Streets Excellent $1.75 to $1.90 per sq. ft. N/A Good $1.60 to $1.70 per sq. ft. $1.55 to $1.65 per sq. ft. Average $1.15 to $1.30 per sq. ft. $1.20 per sq. ft.

The individual Market Rent Estimates as of April 13, 2010 are as follows: Condition/ Projected Projected Unit # Size Current Current Tenant Quality Unit Rent Rent Total Rent Rent/SF (R) St. Ann 1- 503-2 1,530 $2,202 $1.44 Exc/Good $1.75 $2,675 2- 503-3 1,530 $1,977 $1.29 Good/Avg. 1.60 $2,450 3- 509-T 1,200 $1,930 $1.61 Excl./Excl. $1.90 $2,280 4- 511-2 1,450 $1,920 $1.32 Avg./Fair $1.20 $1,740 5- 511-3 1,450 $2,095 $1.44 Avg/Avg. $1.26 $1,825 6- 515-2 1,450 $1,920 $1.32 Avg/Fair $1.20 $1,740 7- 515-3 1,450 $2,095 $1.44 Avg/Good $1.32 $1,900 8- 519-2 1,450 $2,070 $1.43 Avg/Avg. $1.25 $1,815 9- 519-3 1,450 $1,845 $1.27 Good/Good 1.70 $2,465 10- 527-2 1,450 $2,070 $1.43 Avg/Avg. $1.30 $1,885 11- 527-3 1,450 $2,095 $1.44 Good/Good $1.70 $2,465 12- 531-2 1,450 $2,070 $1.43 Excl./Excl. $1.80 $2,600 13- 531-3 1,450 $2,045 $1.41 Avg/Avg. $1.20 $1,740 14- 535-2 1,450 $1,970 $1.36 Good/Avg. $1.60 $2,320 15- 535-3 1,450 $1,845 $1.27 Avg./Fair $1.15 $1,670 16- 539-2 1,450 $2,095 $1.44 Good/Avg. $1.65 $2,390 17- 539-3 1,450 $2,070 $1.43 Good/Avg. $1.60 $2,320 18- 541-t 1,200 $2,080 $1.73 Excl./Excl. $1.90 $2,280 19- 543-2 1,530 $2,177 $1.42 Good/Avg. $1.70 $2,600 20- 543-3 1,530 $2,052 $1.34 Good/Good $1.65 $2,525 Chartres 21- 806-2 1,200 N/A N/A Museum Good/Avg. $1.60 $1,920 22- 806-3 1,200 $1,730 $1.44 Avg./Avg. $1.20 $1,440 23- 810-2 1,200 $1,905 $1.59 Good/Avg. $1.60 $1,920 24- 810-3 1,200 $1,730 $1.44 Good/Avg. $1.55 $1,860 Decatur 25- 807-2 1,200 $1,905 $1.59 Good/Avg. $1.60 $1,920 26- 807-3 1,200 $1,730 $1.44 Vacant Avg./Avg. $1.20 $1,440 27- 811-2 1,200 $1,850 $1.54 Good/Avg. $1.65 $1,980 28- 811-3 1,200 $1,730 $1.44 Good/Avg. $1.55 $1,860 2010 Rent Study lower Pontalba.doc 173 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

ADDENDA

2010 Rent Study lower Pontalba.doc 174 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

COMPARABLE MAP

9

3 7 5 4 2

8 1

6

2010 Rent Study lower Pontalba.doc 175 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Comparable Rental #1

Location: 1131 Decatur Street Apartment B New Orleans, Louisiana

Date of Lease: August 10, 2009

Recordation: MLS# 799777

Apartment Size: 1,100 Square Feet

Monthly Rent: $1,300 per month

Unit Rental per S/F: $1.18 per Square Foot

Term: Year Lease

Condition: Good with Average Quality Finishes

Remarks: Recently renovated 2nd floor unit with 4 rooms and 1 bath. The unit is equipped with refrigerator, stove, and dishwasher. Shared washer and dryer in courtyard. View of the courtyard and Decatur Street.

Apartment has no balcony, no historic features, and no central air and heat.

2010 Rent Study lower Pontalba.doc 176 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Comparable Rental #2

Location: 543 Governor Nichols Street Corner Chartres Street New Orleans, Louisiana

Date of Lease: January 12, 2010

Recordation: MLS# 807321

Apartment Size: 1,400 Square Feet

Monthly Rent: $1,750 per month

Unit Rental per S/F: $1.25 per Square Foot

Term: Year Lease

Condition: Good with Average Quality Finish

Remarks: The 2nd floor apartment has central air and heat, unfinished hardwood floors, kitchen equipped with stove, refrigerator, and microwave – no dishwasher. Washer and dryer provided. Apartment has small wrap around balcony and rear roof deck overlooking Governor Nichols. The unit has 3 rooms and one bath.

2010 Rent Study lower Pontalba.doc 177 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Comparable Rental #3

Location: 710 Orleans Street Apartment B, C, and H New Orleans, Louisiana

Date of Lease: February 1, 2010, March 15, 2010, November 17, 2009

Recordation: MLS# 809158, 809160, 809154

Apartment Size: 950, 950, and 903 Square Feet

Monthly Rent: $1,200 per month, $1,200 per month, $825 per month

Unit Rental per S/F: $1.26 per S/F, $1.26 per S/F, and $0.91 per S/F

Term: Year Lease

Condition: Average, Average, Fair with average quality finishes

Remarks: The units have central air and heat with older finishes. Minimal kitchen appliances. Apartment building with retail tenants below currently undergoing facade upgrade. Just behind St. Louis Cathedral. Balconies for front units B and C. Each unit has one bath.

2010 Rent Study lower Pontalba.doc 178 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Comparable Rental #4

Location: 632 St. Peter Street Apartment 2 New Orleans, Louisiana

Date of Lease: June 15, 2009

Recordation: MLS# 785949

Apartment Size: 1,614 Square Feet

Monthly Rent: $2,450 per month

Unit Rental per S/F: $1.52 per Square Foot

Term: Year Lease

Condition: Good - Average Quality Finishes.

Remarks: The 2nd floor apartment has central air and heat, refinished hardwood floors, kitchen equipped with stove, refrigerator, microwave and dishwasher. Apartment has 2nd floor balcony. No courtyard.

2010 Rent Study lower Pontalba.doc 179 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Comparable Rental #5

Location: 1034 Royal Street Apartment A – on Courtyard in Dependency New Orleans, Louisiana

Date of Lease: June 15, 2009

Recordation: MLS# 784318

Apartment Size: 1,050 Square Feet

Monthly Rent: $1,650 per month

Unit Rental per S/F: $1.57 per Square Foot

Term: Year Lease

Condition: Good – Average Quality Finishes

Remarks: The two-story apartment has central air and heat, refinished hardwood floors, kitchen equipped with stove, refrigerator, dishwasher, and washer/dryer. Building has balcony overlooking Royal Street. Average quality finishes. Unit has rear balcony overlooking courtyard. Part of a condominium regime. Unit has four rooms and one bath. There is a fireplace.

2010 Rent Study lower Pontalba.doc 180 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Comparable Rental #6

Location: 1140 Decatur Street Apartment 5 New Orleans, Louisiana

Date of Lease: June 19, 2009

Apartment Size: 1,650 Square Feet

Monthly Rent: $2,700 per month

Unit Rental per S/F: $1.64 per Square Foot

Rooms: 3 Rooms – 1 ½ Baths

Recordation: MLS# 780875

Term: Year Lease

Condition: Good – Good Quality

Remarks: The loft style apartment has central air and heat, refinished hardwood floors, balcony overlooking Decatur Street. The bath has Jacuzzi tub. Renovated in 2001. Part of a condominium regime.

2010 Rent Study lower Pontalba.doc 181 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Comparable Rental #7

Location: 712 St. Philip Street New Orleans, Louisiana

Date of Lease: January 15, 2010

Recordation: MLS# 814365

Apartment Size: 900 Square Feet

Monthly Rent: $1,700 per month

Unit Rental per S/F: $1.89 per Square Foot

Term: Year Lease

Condition: Excellent/Good Quality Finishes

Remarks: Completely renovated apartment has central air and heat, refinished hardwood floors, kitchen equipped with stove, refrigerator. New renovation. Apartment opens onto rear courtyard. First floor unit with one bath, opening directly on St. Philip Street. Leased in 45 days at asking price. Does not have the historic crown molding or mantles.

2010 Rent Study lower Pontalba.doc 182 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Comparable Rental #8

Location: 526 Madison Street Apartment 4A New Orleans, Louisiana

Date of Lease: December 30, 2008

Recordation: MLS# 765976

Apartment Size: 1,400 Square Feet

Monthly Rent: $2,675 per month (Adjusted –15% for furnished versus unfurnished taken from marketplace)

Adjusted Rent: $2,274 per square foot

Adj. Unit Rental per S/F: $1.62 per Square Foot

Term: Year Lease

Condition: Excellent/Excellent Quality Finishes

Remarks: Historic building with modern finishes. Fully equipped kitchen. Small balcony.

2010 Rent Study lower Pontalba.doc 183 Appraisal Report Lower Pontalba Apartments., New Orleans, La.

Comparable Rental #9

Location: 920 Conti Street Apartment 3 New Orleans, Louisiana

Date of Lease: February 4, 2009

Recordation: MLS# 773603

Apartment Size: 940 Square Feet

Monthly Rent: $1,700 per month

Unit Rental per S/F: $1.81 per Square Foot

Rooms: 3 Rooms – 1 Baths

Term: Year Lease

Condition: Excellent /Average Quality Finishes

Remarks: Renovated pre civil war building with high ceilings, hardwood floors, crown molding, floor to ceiling windows and 20 foot balcony overlooking Conti. New kitchen and bath, central air and heat, washer and dryer in unit. refrigerator, and dishwasher. Apartment has shared courtyard. 2010 Rent Study lower Pontalba.doc 184