n it il lt l. 1 nI lt AND CONSUL REALESTATEVALUATION PnoNB l-847-228-3700 * FAX I-847-228-3L48 *ELK 5OO E. HIGGINS ROAD, STE. 10 1 GRO\E VILLAGE, TL 60007 -1 437

September 17.2002 File No. I250we2-0955

Ms. Dana Salvatore Assistant Vice President Bank One Corporation Real Estate Appraisal Group 1 Bank One Plaza, IL1-0635 Chicago, Illinois 60670

Re: Bank One FILe #IL2002-0678 Single-User Industrial Building 444 Mercantile Court Wheeling, Illinois 60090 (Bank Client - Avenues to Independence Foundation)

Dear Ms. Salvatore:

As requested, an inspection and appraisal have been made of the above referenced properf5r. Our objective was to estimate the market value, as defined by the Comptroller of the Currency under 12CFR, part 34, subpart C, of the fee simple interest of the subject, assuming no liens oi encumbrances other thannormal covenants and restrictions of record. This appraisal is supported by the contents of our workfile, which are included herein by reference.

You have requested a Complete Appraisal - Summar,v Report which sets forthprimarily summalv discussions of the data, reasoning, and analyses we used to arrive at the final valire estimate. Some of the supporting data may be contained in our file. This report has been prepared in cornpliance .*'lth the reporting requirements set fortJ: in rJ:e Unifonrr StanCards of Professional Appraisal Practice (USPAP) Standards Rule 2-2(b) and is the result of a Complete Appraisal development process whereby all Approaches to Value were carefutly analyzed and their applicabilify to the subject properfy determined. No departures from Standard 1 of USPAP were invoked in the development of this appraisal.

We understand that the appraisal report is intended to be used for loan underwriting purposes. We have estimated the market value of the fee simple estate of the subject property as defined above as of September 9, 2002, the date of our inspection. The appraisal is subject to the

l MURIELLO oppnors* oNo "o*rutrnou

Ms. Dana Salvatore Assistant Vice President Bank One Corporation Real Estate Appraisal Group September 12,2002 Page2

Definitions, Assumpiions, and Limiting Condiiions contairred in the foiiowing report, whieh is dated September 12, 2002.

The subject propeffy consists of a slightly irregular shaped, but essentially rectangular site on the west side of Mercantile Court, west of Wheeling Road, in the northern sector oi the Village of Wheeiing, Illinois, a northern suburb of the City of Chicago. The subjeet is in a basic industrial district first platted in the 19601s and is among other industrial sites. Residential properties are to the west. The site has 100 feet of frontage on Mercantile Court and contains a gross area of approximately 106,039 square feet. It is levei at the grade of adjacent propertie; and has all municipal and private utilities connected to it.

The site is L00Vo located inaZone AO flood huardarea accord,ing to Flood Insurance Rate Map #17031'C 0068 F, with an effective date of November 6, 2000. The flood depth in this area has been measured at two feet. Please. see the enclosed Flood Lrsurance Rate Map. However, our opinion is the flood hazard has no effect on marketability, as many properties iocated within the flood plain in Wheeling industrial districts sell with suificient frequency to suggest no market resistence.

The site is improved with an FDA-registered one-story industrial manufacturing-warehouse building containing a total of 48,425 square feet. The original 21,274 square foot manufacturing section with 13 foot clear height was built circa 1964. In approximately the late 1960's , a 6,97O square foot metal panel addition was made to the rear which was originally designed for extrusions. In approximately the mid-1970's a masonry constructed wareh6use uOAiriori*ith 17 foot clear height was made, containing 20,1.81. square feet. In total, the weighted average age of the property is 31 years, and there are four exterior d.epressed docks and one drive-in door. Clear height in the warehouse , again, ranges from 13 to 17 feet, with a weighted average of 15 feet.

The current owner purchased the property in 1996 and did extensive renovation to include a new Dryvit facade on the front elevations, glass block plant windows, a complete office gut and remodel with good quality materials and workmanship (oak woodwork and trim, Pella windows, upgradeceilingtilesandparaboliclightlenses, etc.), along withl00Zo airconditioningthroughout the properly. Roll-up vinyl /rubber doors were installed between the various sections of the plant/ warehouse for more efficient HVAC and isoiating the packaging section of the properfy (the owner packages candy) from the elements and dust. The renovation project also inctuded decent quality plant washrooms and locker roomg, and-fulI metal halide or sodium vapor lighting Ms. Dana Salvatore Assistant Vice President Bank One Corporation Real Estate Appraisal Group September 12,2A02 Paee 3

throughout. We found the property to be in good condition, with the only suggested deferred maintenance being replacement of the parking lot, which is in strictly average condition and need.s attention. The condition of the parking lot was taken into consideration in the value estimate.

We are of the opinion that the highest and best use of the land as though vaeant is industrial, and the highest and best use as improved is the current use, a single-user industrial manufacturing- warehouse propefty. The scope of our appraisal included an inspection of the subject propeffy and neighborhood, research of the market for land saies, improved sales and leases of comparable properties, inspection of the data and analysis and comparison of same to the subject property. The th'ree classic Approaches to Value as they pertain to the subject are developed herein, and a discernible market behavioral pattern is evident.

After careful consideration of all factors pertaining to value and subject to the Definitions, Assumptions, and Limiting Conditions contained in the report, we are of the opinion that as of September 9, 2002, the subject properry had a market value of:

$1,865,000 (Owr Mn r,roxETcHT,IfUNDRED Sxry-X'rw Tuouslwo DoLLARS)

Disclosure of the contents of the appraisal is governed by the Bylaws and Regulations of the Appqaisal Institute. In furtherance of the aims of the Institute to develop higher standards of professional performance by its members, the appraisers may be required to submit to authorized committees of said Institute copies of the report and any subsequent changes or mod.ifications thereof. Our appraisal is prepared in conformance with the Code of Professional Ethics and the Uniform Standards of Professional Appraisal Practice and Supplemental Standards of the Appraisal Institute, and aiso is consisteniwith appraisal requiremenii and guidelines mandated by FIRREA. MURIELLO appnrser aNo "oNswrnvc

Ms. Dana Salvatore Assistant Vice president

Real Estate Appraisal Group September 12, Z0Az Page 4

;

This letter of transmitial sets , forth the value conclusions resuiting from our inspection, research, and analyses. Some of the data and analyses to support these cJnclusions follow in the f"r- a Complete Appraisal - Summary Report. "i

Respectfu lly subr.nitted,

,.r , Senior Appraiser ii Illinois State Certified General Real Estate i Appraiser License No. 153-000426 x il \--/' i lr c f/hw, t',t iir--l

ll PJMIbdh File No. I250we2-0955 n n

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lllr rl fltI TABLE OF CONTENTS

INTR.ODUCTION

INTRoDUCTIoN 1 Crmwr I4 SrrerBcr PRopsnly 1 PunposB oF THB Appnersar L Drscrosuns or CovpBrENCy 2 INrnxnen UsB or rnr Rsponr 2 Pnopsrry fucHrs AppRerspn 2 Darp op INsppcrioN 2 Erpscrrye Ders or Varus 3 DerB op Rnponr 3 LscAr DescRrprroN 3 SrerBlmNr op OwNBRssrp 3 THnne Yeen SarBs HlsroRy oF rue SLrBrBcr 3 Fsrnlars op Exposrrnp*Nn MenrBrING TIME

PREMISES OF TI{E APPRAISAL pRocess i Appnarsar DrveropwNT AND RspoRrnqc

DESCRIPTIVE DATA Vrcngny Mep l 6 AREA AND NucrmonHooo Dera Suvnmny 7 Eppecrs op 9lI1 awo lNsunexcs PREN.4rur4s lrqcpsasB 8 ZoNnTc Mep 9 Froon INsunawcB RerB Mep 10 Prar or SunvBv I2 SrrE PreN 13 S rrerncr Plroro cnepns T4 PRopeRry DBscnpuoN L4 ZoNrt.Ic 28 Rear Esrlrs Texps 28

l ANALYSIS AND CONCLUSIONS HrcnBsr aNo Bnsr Uss 29

I Salss CorwenrsoN Appnoacn To Verus 31 Covpanasrs Sarns Mep 38 INcow CaprrerzeTroN APPRoACH To VaTUB 41 RBcoNcu-uuoN 44 CsRrmrcArroN 45

File No. I25Awe2-0955 MURIELLo APPRAISAL AND CONST]LTING t-l ADDENDA l1I : ASSUMPTIONS t-r- - - I ' I I Copyu\Jr r or\Jx ENc*cBtvreNrrll\\jr/r{"tr Lprrpn QuermrcertoNs or AppReispRs n fial iln l

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- COMPLETE APPRAISAL - STMMARY REPORT

In accordance with our prior agreement with the client, this is a Complete Appraisal - Summary Report which is intended to comply with the reporting requirements set forthunaer StanOards Rule 2-2(b) of the Uniform Standards of Professional Appraisal Pracrice for a Summary Appraisal Report, As such, it may present only summary disclssions of the data,reasoning, and analyses that were used in the appraisal process to develop the appraisers' opinion of value. Supporting documentation concerning the d.ata, reasoning, and analyses may be retained in the appraisers, file. The depth of discussion contained in this report is specific to the needs of rhe client, for the intended use stated below, and the appraisers are not responsible for unau thorized,use of this repofi.

Clmlr: Bank One Corporation Real Estate Appraisal Group 1 Bank One Plaza, IL1-0635 Chicago, Iilinois 6057A

Sun"recr PnopnRry: Bank One FIte #IL2002-0678 l Single-user industrial building 444 Mercantile Court Wheeling, Illinois 60090 (Bank Client - Avenues to Independence Foundation)

PI'RPOSE OF' THE APPRAISAL:

The purpose of this appraisal is to estimate the market value of the subject property as of the effective date. Market value is defined by the federal financial institutions reguiatory agencies as follows:

i The most probable price which aproperty should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:

File No. 125}we2-0955 MuBrerro'Appnarsat, AND Collsur,rnvc t1l 1. buyer and seller are typically motivated;

md aeting in what they consider their. best interests;

3. a reasonable time is allowed for exposure in the open market;

4. payment is mad.e in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; and

5. the price represents the normai consideration for the properfy sold unaffected by tp.ii"l or creative financing or sales concessions granted by anyone associated with the sale.

(Untfum Standards of Professional Appraisal Practice, published by the Appraisal Foundation, - Copyright 2001, Definitions tfl,)

i DrsclosyRn oF COMPETEIT{GY: l- We assure the client that the appraisers have the knowledge and experience necessary to compiete this assignment competently, having appraised similar properties in the past.

I

INTENDED USE OF REPORTI ] This appraisal report was iuthorized by Ms. DanaSalvatore of Bank One Corporalion, Real Estate Appraisal Group , W. understand that this appraisal is intended to be used for loan underwriting i , Purposes

' PROPERTY RIGHTS APPRAISED: ra The properiy rights appraised are the fee simple title to the subject properf , assuming no liens ) or encumbrances other than normal covenants and restrictions of record.

DATE OF INSPECTION: The subject propeffy was inspected on September g,2002. jr rr File No. l25Awe2-A955 Mrnrer,r,o Appnnsar eivo Cot.*swrrwc Lzl EFFECTIVE DATE OF VALT]E: The effective date of this appraisal is Septemb er 9, 20A2, the date of our inspection of the subject properry.

This report is dated September I2,2002.

LEGAL DESCRIPTION: I The foilowing legal description is as it appears on a copy of a plat of survey prepared by Jens K : Dow Survey Service, Inc., Registered T.and Surveyors, 7442 North Harlem Avenue, Chicago, l I Iltrinois 60631 , 312-77 5-033 1 , dated March !5 , 1996, and is assumed to be correct:

Lots 1 and}in Ablers Subdivision, being a subdivision of Lots 7 and 8 in Herzogs First Industrial Subdivision of ,part of the East.l/z of Section 10, Township 42 North, Range 11, East of the Third Principal Meridian, and

part of the West % of Section 1 i, Town ship 42l.lor1h, Range 1 1, Easi of the

Li Third Principal Meridian, according to the plat thereof registered in the Office of the Registrar of Titles of Cook Counfy, Illinois, on December 13, 1955, as Document N'.imber 15397 63, anC Certificate of Correction thereof registered December 74, 1956 as Document Number 17I348I.

STATEMEI'.{T OF OWNERSIIIP: j i According to public records, the subjeet property is:crrrrently under the ownership of Ronald R. Lemon, who occupies the property with his business, Cano Packaging. We assume this information is accurate.

THREE YEAR SALES HISTORY OF THE SUBIECT:

research of county records sources and have consulted with representatives of ownership for any l.-, information pertaining to sales, listings, or othel transfers of. the subject properfy that have r\t'

File No. 1250we24955 MtrsIEr,Lo Appmrser, n no CoNswtrNe

r-ilL-l occurred in the three year period preced,rng the effective d.ate of valuation. The subject was purchased by the eurrent owner in January 1996 ata recorded price of $950;000 under Document #96-267466' The owner reports ttrat he purchased the property from the widow of the .wner (Sam Reda) who had died. At that time the pioterty wai in only faii to aneiage cond,ition and an extensive remodeling process was undertaken. Coupled with signifieant increases in market values over the past years, the current market value is much hieher.

ESTIMATE OF E)(POSIIRE AND MARKETING TIME: Based on an analysis of comparable sales and discussions with knowledgeable brokerage sources, we estimate that both an exposure and marketing time of approximately twelve to eighteen would be applicable to the subject propeffy at the appraised value herein, provided it is priced properly and aggressively marketed through methods considered normal and prudent io,. tt, r*j.; properfy type, and by qualified and competent marketing agent(s). i

APPRAISAL DEVELOPMENT AND REPORTING PROCESS' In preparing this appraisal, the appraiser(s)

inspected the subject neighboihood, subject site and the exterior of the improvements as well as interior of the improvements;

gathered information on comparabie land and improved sales, rents, operating expenses, construction: costs, accrued depreciation, and capitahzation and/or yield rates; confirmed and analyzed the data, and developed the Sales Comparison and Income Capttalization Approaches to Value as they pertain to the subject properfy.

The Cost Approach to Value wasconsidered in the development of this appraisal assignment, but our opinion is this Approach is not appiicable to the appraisal of the subject properry. The Cost Approach is most useful in growth areas where there is an active new construction market, where recent land sales are abundant and square foot land values are in a discernible range and widely known, when the improvements are new or newer and meet market standards for functional

Fiie No. D5AwA-0955 Murupr,ro Appn qrsar, AND CoNsnLTrNc t41 rrrilitv,r andqrs whenYv the improvements (existing orvr yrv}/vDwvlproposed) representtwyLw the highest and best use of : the property as improved. Under these conditions buyers and sellers will tend to view cost new nhrs I21d value as being a viable valuation method, especiaily since there is a minimum of

component thereof, is also useful as a check to determine whether the improvements still

revitalization.

However, the subjeet property is not new and is located in a substantially dexeloped, stable area among other improved properties, in a market where there have been fewer recent land sales, and resales of existing properties are far more prevalent than new construction. Although some have a idea of construction costs, few market participants are capable of accurately estimating depreciation except in a broad sense. The Cost Approach also assumes that they are aware of land values, and our studies and interviews with buyers, sellers, broker and others in the subject market .suggest that this is not the case. Primarily for these reasons, this Approaclh to value is seldom used by buyers and sellers for properties of the subject fype and age in this location. Atthough the Approach could technically be developed using known appraisal methocis, in the case of the subject property it would be little more than an academic exercise, and most importantly it is not acknowledged by buyers and sellers as a viable valuation method. Therefore, the Cost Approach is considered to be not applicable to the subject properfy and was not developed. The exclusion

of this Approach has no impact on the reliability of the value estimate and does not represent a departure from the provisions of Standards Rule 1 of the Uniform Standards of Professional Appraisai Practice (USPAP).

To develop the opinionofvalue, the appraisers performed acomplete appraisalprocess, as'de ined by the Uniiorm Stanciards of Professionai Appraisal Practice. This means that no departiires from Standard 1 were invoked. This Summary Appraisal Report is a brief recapitulation of the appraisers' daia, analyses, and conclusions. Supportilg docr:mentation is retained in the appraiser's file. Sources of data include properties that we have appraised, reputable real estate r brokers, public records and public record.s seryices, managernent agents, and properfy owners, as well as Marshatl and Swift - Marshall Valuation Service, and direct cost comparisons where available.

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File No. L250we7-0955 Munrnrr,o Apmarsar, aru Coxswrrxe t5l VICINITY MAP

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File No. 1250we2-0955 Munrpr,r,o Appnarsnr, mm CoNsulrrNc t6l AREA AND NEIGITBORHOOD DATA SIJI\{MARY: The subject properfy is iocated in the viilage of wheeling, a northem cook counfy suburb of Chicago, Illinois. Specifically, it is located in an industrial park in the n.rth central section of the village' Except for the for north portion near Dundee Road, this primarily industrially oriented neighborhood can be best d.escribed as bound.ed by Dundee.Road to the north, palatine Road to the south, Wolf Road to the east and Wheeling Road. to the west. The majorify of the improvements in the area were built in the three d,ecades between 1960 and lgg},although in-fitl sites have allowed for a small amount of construction since then. The subject is at the west edse of this industrial area; single-family homes abuf the subject on the west.

The subject is surrounded on the north, south and east by industrial properties. The subject subdivision was first platted in the 1960's and includes properties constructed into the 1970,s. These include single-user and multi-tenant properties varying in size to over 300,000 square feet, though smaller properties are the norm. The area is mafure and essentially fully developed. The few vacant industrial in-fill sites in the general area are expected to evenfually be improved with this property type. The subject is specifically located in a pocket of industrial properries west of the Wisconsin Central Railroad righfof-wa5r, south of Dundee Road., north of Hintz itoad, and just east of a developed single-family home sector of town. Access to the neighborhood is by way of Wheeling Road which runs north and south and connects Dundee Road to HintzRoad.

Wheeling has seen substantial growth over the last 20 years, with the numbr3r of manufacturing establishments increasing by I00% between 1982 and 7gg1, and. over 400 i.ndustrial ,o*p*i.i now operating within the corporate limits. The largest employers inclucle Factiv lformerty Tenneco), Solo Cup, and Orville Kent combining to employee over 1,500people" Of Wheeling,s 8.5 square miles, nearly a third of the land is zoned for industrial use. Exisl;ing industrial space is in excess oi 12 miiiion square feet.

Transpofiation in the area is considered gocd, v,'ith access to Interstate Z!)4 4bout 3.5 miles southeast. Major east/west roadways in the vicinify includ.e Palatine Roa.d to the south and Dundee Road (Illinois Route 68) to the north. The primary north/northwest-southeast roadways are Illinois Route 83, Milwaukee Avenue (Illinois Route 21), DesPlaines/River Road (U. S. Route 45) and Rand Road (U.S. Route 12). Wheeling is also home to Paiwaukee Airport, which is one mile east of the subject and hosts an extensive aruay of corporate and generai aviation aetivities. O'Hare International Airport is approximately 20 minutes by car to the south, while Chicago's

File No. 1250we2-0955 Munrsrro AppRArsal, Ewo CoNsurrn+o L7J downtown is about 75 minutes away. In the mid 1990's, a METRA commuter train station was f opened within the village, centrahzed near Dundee Road north of the subject.

Wheeling's growth is a testament both to its desjrable location and the viilage,s I pro-growth direction, reflected in its attitude and receptiveness toward commerce and inrlustry in general. By using its locational advantages and airport to its benefit, we anticipate that Wheeling will continue r to prosper well into the 21st century. This bodes well for the subject and the area in general.

i , coln'ml{T oN9-1L-01 AND TNSTTRANcE krrvrruus rlrcnp*sn: The events of September 11, 2001 terrorists attacks are virnrally a year ol,l as of the appraisal j date. No brokerage sources interviewed in connection with this appraisal, including Joe Geisel of CB Richard Ellis, Dan Tobin and Brian Carroll of Grubb & Ellis, ind.iclte that the terrorists attacks had a direct impact on market values or marketing times. The feeling is that the market was already in decline as tle result of the onset of the recession in 2000. The current market js charactertzed by longer marketing times with many i manufacturers reluctant to make real estate moves or significant commitments to new buildings. However, all sources agree that the events of September 11, 2001 had little, if any, direct impact on the industrial market.

Immediately after 9/11 some insurance carriers increased insurance premiums, particularly for l high rise office buildings. Again, this is not seen to have a significant impact on one-story industrial propefties in the subject market. Insurance is viewed by typical owner-users as being a cost to do business that everyone bears, even tenants who are required und.er their leases to pay insurance premiums under net arrangements. No market participants interviewed in connection

market value as a result of any insurance premium increases, which are nevertheless currently

$0.08 to $0. 12 per square foot.

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File No. I250wA-09:55 Munrsrro Aptnarsar- AND CoNsrlr.TrNe t8l