Appraisal of Real Property

APPRAISAL OF REAL PROPERTY

Commercial Office Building 840 West Hafen Lane APN 001-19-501-005 Mesquite, Clark County, NV 89027

IN AN APPRAISAL REPORT

As of August 25, 2020

Prepared For:

City of Mesquite 10 East Mesquite Boulevard Mesquite, NV 89027

Prepared By:

Cushman & Wakefield of Nevada, Inc. Valuation & Advisory 6725 Via Austi Parkway, Suite 275 Las Vegas, NV 89119 Cushman & Wakefield File ID: 20-56001-900158-001

CUSHMAN & WAKEFIELD OF NEVADA, INC. 6725 VIA AUSTI PARKWAY, SUITE 275 LAS VEGAS, NV 89119

Commercial Office Building 840 West Hafen Lane APN 001-19-501-005 Mesquite, Clark County, NV 89027

CUSHMAN & WAKEFIELD

6725 Via Austi Parkway, Suite 275 Las Vegas, NV 89119 Tel +1 702-396-7956

cushmanwakefield.com

September 09, 2020

Aaron Baker City Manager City of Mesquite 10 East Mesquite Boulevard Mesquite, NV 89027

Re: Appraisal Report

Commercial Office Building 840 West Hafen Lane APN 001-19-501-005 Mesquite, Clark County, NV 89027

Cushman & Wakefield File ID: 20-56001-900158-001

Dear Mr. Baker:

In fulfillment of our agreement as outlined in the Letter of Engagement copied in the Addenda, we are pleased to transmit our appraisal of the above referenced property in the following Appraisal Report.

This is an Appraisal Report, which is intended to comply with the reporting requirements set forth under Standards Rule 2-2(a) of the Uniform Standards of Professional Appraisal Practice.

The subject property consists of a single-story, commercial office building which according to architectural plans contains 17,872 square feet with a 1,585 square foot covered porte-cochere canopy. The building was originally constructed as the Arcon Health Clinic and Surgery Center who ceased operations and vacated approximately 10 years ago. The space was subsequently occupied by the Mesa View Hospital entity who used some space for office/accounting but they vacated the building 5 years ago. Other than 2,000 square feet that has been leased to the Southern Nevada Health District since 2017, the building has been vacant and is in need of repairs and remodel. The lease to SNHD has been renewing on an annual basis since 2018 but is in the final year of an option period with a termination in September 2021. In addition, either party has a right to terminate the lease with a 30 day notice. We have been asked to provide a value for the subject of the fee simple interest, without any consideration of assumption that this tenant will remain.

The subject is located on a parcel with 4.93 acres, or 214,751 square feet. The location along Hafen Lane is residential in nature with single family homes on every side of the parcel. The area originally used as a Helipad in the northwest corner of the parcel is now leased to the Mesquite Veterans Center who have placed a manufactured pre-fab structure for use as a veterans center. The lease was signed in 2009 for 50 years with no rental income obligations. The lease does not specify the area that can be used or the number of spaces this tenant can utilize. In preparation for potential disposition of the subject, the City of Mesquite will modify the lease to define these

Aaron Baker Cushman & Wakefield of Nevada, Inc. City of Mesquite September 9, 2020 Page 4

issues but have reported that due to the free use of the site, the lease will be structured to guarantee that the building occupant will have full and functional use of the property. We have included an extraordinary assumption that this lease will be modified as needed.

In recent times, the CRE market has been driven by investor demand and strong liquidity. Asset values can fall significantly in short periods of time if either of these two factors, often in conjunction with many others, change significantly. While Cushman & Wakefield is closely monitoring the latest developments and will continue to provide updates as events unfold, the reader is cautioned to consider that values and incomes are likely to change more rapidly and significantly than during standard market conditions. Furthermore, the reader should be cautioned and reminded that any conclusions presented in this appraisal report apply only as of the effective date(s) indicated. The appraiser makes no representation as to the effect on the subject property(ies) of this event, or any event, subsequent to the effective date of the appraisal.

This Appraisal Report has been prepared in accordance with our interpretation of your institution’s guidelines and the Uniform Standards of Professional Appraisal Practice (USPAP).

Based on the agreed-to Scope of Work, and as outlined in the report, we developed the following opinion:

Value Conclusions Appraisal Premise Real Property Interest Date of Value Value Conclusion Market Value As-Is Fee Simple August 25, 2020 $1,150,000 Compiled by Cushman & Wakefield of Nevada, Inc. The value opinion in this report is qualified by certain assumptions, limiting conditions, certifications, and definitions, as well as the following extraordinary assumptions.

Extraordinary Assumptions For a definition of Extraordinary Assumptions please see the Glossary of Terms & Definitions. The use of extraordinary assumptions, if any, might have affected the assignment results.

The subject has a 50 year lease in place that allows for the Mesquite Veterans Center to occupy a portion of the former helipad site. The tenant currently has a manufactured pre-fab structure in that area but the lease agreement does not define the usable area or address rights to parking. In anticipation of disposition of the property, the City of Mesquite intends to modify the lease so that these and other issues are defined in a manner that guarantees a new owner can fully utilize the site to its highest and best use. The City of Mesquite representative stated that the tenant is aware that this needs to be done and is cooperative but no pending lease document is available for review. We have estimated an allocated area for the Veteran’s Center as a deduction to the usable site area for the purpose of this analysis but if a different area is allocated we may need to reconsider our value conclusion. It is an extraordinary assumption that the existing lease will be modified to make the subject marketable and usable by a new owner.

The building also has deferred maintenance for various issues related to age and vacancy but no cost estimate has been obtained or provided. In addition, the current floor plan is tenant specific and dated. We do not have a specific end user plan to consider so we have estimated costs for demolition as well as costs to bring the subject to a functional usable state that considers some of the existing infrastructure and mechanicals and results in a more marketable condition for a second generation user. These costs are user specific and are likely to change. We have included an extraordinary assumption that our estimated costs are reasonable but should actual costs become available, this would likely influence our analysis and conclusion.

Aaron Baker Cushman & Wakefield of Nevada, Inc. City of Mesquite September 9, 2020 Page 5

Hypothetical Conditions For a definition of Hypothetical Conditions please see the Glossary of Terms & Definitions. The use of hypothetical conditions, if any, might have affected the assignment results.

This appraisal does not employ any hypothetical conditions.

This letter is invalid as an opinion of value if detached from the report, which contains the text, exhibits, and Addenda.

Respectfully submitted,

CUSHMAN & WAKEFIELD OF NEVADA, INC.

Petra Latch, MAI Executive Director Nevada Certified General Appraiser License No. A.0004239-CG [email protected] 702-605-1561 Office Direct

COMMERCIAL OFFICE BUILDING CLIENT SATISFACTION SURVEY

Client Satisfaction Survey

V&A National Quality Control Group values your feedback! • What are we doing right? • Are there areas where we could improve? • Did our report meet your requirements? As part of our quality monitoring campaign, your comments are critical to our efforts to continuously improve our service. We’d appreciate your help in completing a short survey pertaining to this report and the level of service you received. Rest assured, any feedback will be treated with proper discretion and is not shared with executive management. If you prefer to limit who receives the survey response, the distribution can be altered at your request. Simply click https://www.surveymonkey.com/r/LQKCGLF?c=20-56001-900158-001 to respond or print out the survey in the Addenda to submit a hard copy or fax response to Rick Zbranek at (713) 963 2870.

Contact our Quality Control Committee with any questions or comments:

Rick Zbranek, MAI Karen Storm, MAI, AI-GRS Steve Saunders, MAI, AI-GRS, FRICS Senior Managing Director Senior Director Executive Managing Director National Quality Control - Co Leader National Quality Control Board National Quality Control Board Valuation & Advisory Valuation & Advisory Valuation & Advisory T +1 713 963 2863 T +1 503 279 1706 T +1 407 541 4384 [email protected] [email protected] [email protected]

Steve Henry, MAI Clarke Lewis, MAI Sid Womack, MAI, AI-GRS, FRICS Executive Managing Director Senior Managing Director Senior Managing Director National Quality Control - Co Leader National Quality Control Board National Quality Control Board Valuation & Advisory Valuation & Advisory Valuation & Advisory T +1 949 930 9211 T +1 631 234 5140 T +1 972 663 9659 [email protected] [email protected] [email protected]

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COMMERCIAL OFFICE BUILDING SUMMARY OF SALIENT FACTS AND CONCLUSIONS

Summary of Salient Facts and Conclusions

Client: City of Mesquite

Intended Use: This appraisal is intended to provide an opinion of the Market Value of the Fee Simple interest in the property for the use to determine whether or not an exchange transaction is feasible.This report is not intended for any other use.

Intended User: This Appraisal Report was prepared for the exclusive use ofthe City of Mesquite. Use of this report by others is not intended by the appraiser. See Engagement Letter.

Identification of Real Estate: Commercial Office Building 840 West Hafen Lane APN 001-19-501-005 Mesquite, Clark County, NV 89027 Current Use: The subject property consists of a single-story, commercial office building containing 17,872 square feet of rentable area situated on 4.93 acres, or 214,751 square foot site. The site contains a ground lease area utilized by the Mesquite Veterans Center and 2,000 square feet of the building is currently occupied by the SNHD whose lease terminates in 2021 and can be terminated with a 30 day notice. Otherwise, the subject building has been vacant for at least 5 years.

Highest & Best Use (As if Vacant) An office or commercial use built to its maximum feasible building area.

Highest & Best Use (As Improved) An office building or commercial use with renovations and remodel.

Type of Value Market Value (defined later in this report)

Real Property Interest Valued: Fee Simple

Current Ownership: City of Mesquite

Sale History: According to public records the subject acquired by the City of Mesquite on July 23, 1999 for an undetermined amount. This transaction is recorded in public document 19990723:01490. To our knowledge, the property has not sold or transferred within three years of the effective date of the appraisal.

Current Disposition: To the best of our knowledge, the property is not under contract of sale nor is it being marketed for sale.The client is considering an exchange transaction.

Personal Property: Personal property was excluded from our valuation. The generator will reportedly be removed and is not included in any potential transfer of ownership.

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COMMERCIAL OFFICE BUILDING SUMMARY OF SALIENT FACTS AND CONCLUSIONS

Date of Inspection: August 25, 2020

Effective Date(s) of Valuation:

As Is: August 25, 2020

Date of Report: September 09, 2020

Extraordinary Assumptions: The subject has a 50 year lease in place that allows for the Mesquite Veterans Center to occupy a portion of the former helipad site. The tenant currently has a manufactured pre-fab structure in that area but the lease agreement does not define the usable area or address rights to parking. In anticipation of disposition of the property, the City of Mesquite intends to modify the lease so that these and other issues are defined in a manner that guarantees a new owner can fully utilize the site to its highest and best use. The City of Mesquite representative stated that the tenant is aware that this needs to be done and is cooperative but no pending lease document is available for review. We have estimated an allocated area for the Veteran’s Center as a deduction to the usable site area for the purpose of this analysis but if a different area is allocated we may need to reconsider our value conclusion. It is an extraordinary assumption that the existing lease will be modified to make the subject marketable and usable by a new owner.

Hypothetical Conditions: This appraisal does not employ any hypothetical conditions.

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COMMERCIAL OFFICE BUILDING SUMMARY OF SALIENT FACTS AND CONCLUSIONS

BASIC INFORMATION Common Property Name: Commercial Office Building Addre ss: 840 West Hafen Lane APN 001-19-501-005 Mesquite, Nevada 89027 Property Ownership Entity: City of Mesquite

SITE INFORMATION Total Land Area: 214,751 SF 4.93 Acres Estimated VA Center Area: 21,780 sf 0.50 Acres Site Shape: Rectangular Site Topography: Level at street grade Frontage: Good Site Utility: Good

Flood Zone Status: Flood Zone: X Flood Map Number: 320030386F Flood Map Date: December 4, 2007

BUILDING INFORMATION Type of Property: Office Sub Type: Health Clinic with Surgery Center

Building Area: Net Rentable Area: 17,872 SF Land-to-Building Ratio: 12.01:1 for entire area and 10.80:1 for usable area

Number of Buildings: One Number of Stories: One Quality: Good Year Built: 1997 Year Renovated: N/A Condition: Fair Actual Age: 23 Years Effective Age: 20 Years Remaining Economic Life: 25 Years Parking: Number of Parking Spaces: 96 Parking Ratio (per 1,000 SF): 5.37:1

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COMMERCIAL OFFICE BUILDING SUMMARY OF SALIENT FACTS AND CONCLUSIONS

MUNICIPAL INFORMATION Assessment Information: Assessing Authority: Clark County Asse ssor's Pa rce l Ide ntifica tion: 001-19-501-005 Current Tax Year: 2020/2021 Current Tax Liability: Exempt Taxes per Square Foot: Exempt Are Taxes Current? Taxes are current Is a Grievance Underway? Not to our knowledge Subje ct's Asse ssme nt Is: Below market levels

Zoning Information: Municipality Governing Zoning: City of Mesquite Current Zoning: PB, Professional / Business Office Is Current Use Permitted? Yes Current Use Compliance: Complying use Zoning Change Pending: No Zoning Variance Applied For: Not applicable

Market Value VALUATION INDICES As-Is VALUE DATE August 25, 2020 SALES COMPARISON APPROACH Indicated Value: $1,165,000 Per Square Foot (NRA): $65.19 INCOME CAPITALIZATION APPROACH Direct Capitalization Net Operating Income (Stabilized): $116,526 Capitalization Rate: 8.00% Preliminary Value: $1,456,570 LESS: Demo, TI Costs and Profit ($353,866) Indicated Value: $1,102,704 Indicated Value Rounded: $1,100,000 Per Square Foot (NRA): $61.55 FINAL VALUE CONCLUSION Real Property Interest: Fee Simple Concluded Value: $1,150,000 Per Square Foot (NRA): $64.35 Implied Capitalization Rate: 10.13% EXPOSURE AND MARKETING TIMES Exposure Time: 12 Months Marketing Time: 12 Months

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COMMERCIAL OFFICE BUILDING SUMMARY OF CRITICAL OBSERVATIONS

Summary of Critical Observations

SUMMARY OF CRITICAL OBSERVATIONS The strengths and weaknesses analysis applies both specifically (attributes internal or specific to the subject) and generally (external or economic considerations that influence the subject).

Strengths

• The subject has upgraded interior medical buildout that includes a higher degree of plumbing. The building has been vacant but other than typical repairs and remodels, is in average condition. The site has adequate parking with surplus areas that could potentially provide more parking or areas for building expansion. There is minimal to no supply of similar vacant buildings in Mesquite available for purchase and the cost to replace is higher than what a reasonable purchase price would be.

Weaknesses

• The building has been vacant and is in need of repairs to the roof and HVAC units. In addition, the current floor plan was specific to a use that is not likely to be useful to a second generation occupant so the building will require demolition and remodel. The Mesquite area has a limited demand for spaces as large as the subject and a limited pool of buyers.

Conclusions

Based on the preceding strengths and weaknesses, the subject property's specific outlook is considered to be cautionary while the general outlook for the overall market is concluded to be cautionary as well.

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COMMERCIAL OFFICE BUILDING PROPERTY PHOTOGRAPHS

Property Photographs

AERIAL PHOTOGRAPH

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COMMERCIAL OFFICE BUILDING PROPERTY PHOTOGRAPHS

FRONT VIEW OF SUBJECT LOOKING SOUTHWEST

REAR VIEW OF SUBJECT LOOKING NORTHWEST

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COMMERCIAL OFFICE BUILDING PROPERTY PHOTOGRAPHS

Rear View of Building Looking Northeast West Side Drive Looking North Toward Hafen Lane

Subject Looking South Subject Looking Southwest

Building Looking East Porte Cochere Looking West

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COMMERCIAL OFFICE BUILDING PROPERTY PHOTOGRAPHS

Looking West Toward Veteran’s Center SNHD Occupied Space

SNHD Occupied Space Interior View of Vacant Space

Interior View of Vacant Space Interior View of Vacant Space

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COMMERCIAL OFFICE BUILDING PROPERTY PHOTOGRAPHS

Interior View of Vacant Space Interior View of Vacant Space

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COMMERCIAL OFFICE BUILDING PROPERTY PHOTOGRAPHS

Surplus Land and Existing Drainage Looking Interior View of Vacant Space Northeast

View of Rear Parking Area and Building Looking View of Surplus Land Area Looking North North

Hafen Lane Looking West Hafen Lane Looking East

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COMMERCIAL OFFICE BUILDING TABLE OF CONTENTS

Table of Contents

Summary of Salient Facts and Conclusions ...... 7 Property Photographs ...... 12 Scope of Work ...... 19 Overview ...... 19 Report Option Description ...... 20 Valuation Process ...... 20 Regional Analysis ...... 21 Las Vegas Regional Analysis...... 22 Local Area Analysis ...... 44 Conclusion...... 50 Las Vegas Office Market Analysis ...... 51 Introduction...... 51 Las Vegas Office Market ...... 51 Submarket Snapshot ...... 51 Construction Completions ...... 52 Vacancy Rates ...... 52 Absorption ...... 53 Rental Rates ...... 53 New Construction Activity ...... 54 Las Vegas Office Conclusion ...... 54 Mesquite Area Office Summary ...... 54 Demographics Information ...... 57 Trade Area Analysis ...... 57 Conclusion...... 59 Property Analysis ...... 60 Site Description ...... 60 Improvements Description ...... 63 Real Property Taxes and Assessments ...... 65 Zoning ...... 67 Valuation ...... 68 Highest and Best Use ...... 68 Sales Comparison Approach ...... 69 Income Capitalization Approach ...... 77 Investment Considerations...... 83 Reconciliation and Final Value Opinion ...... 95 Assumptions and Limiting Conditions ...... 96 Certification ...... 98 Addenda Contents ...... 99

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COMMERCIAL OFFICE BUILDING SCOPE OF WORK

Scope of Work

Overview

Scope of work is the type and extent of research and analyses involved in an assignment. To determine the appropriate scope of work for the assignment, we considered the intended use of the appraisal, the needs of the user, the relevant characteristics of the subject property, and other pertinent factors. Our concluded scope of work is summarized below, and in some instances, additional scope details are included in the appropriate sections of the report:

Research

• We inspected the property and its environs. Physical information on the subject was obtained from the property owner’s representative, public records, and/or third-party sources. • Regional economic and demographic trends, as well as the specifics of the subject’s local area were investigated. Data on the local and regional property market (supply and demand trends, rent levels, etc.) was also obtained. This process was based on interviews with regional and/or local market participants, primary research, available published data, and other various resources. • Other relevant data was collected, verified, and analyzed. Comparable property data was obtained from various sources (public records, third-party data-reporting services, etc.) and confirmed with a party to the transaction (buyer, seller, broker, owner, tenant, etc.) wherever possible. It is, however, sometimes necessary to rely on other sources deemed reliable, such as data reporting services. Analysis

• Based upon the subject property characteristics, prevailing market dynamics, and other information, we developed an opinion of the property’s Highest and Best Use. • We analyzed the data gathered using generally accepted appraisal methodology to arrive at a probable value indication via each applicable approach to value. • The results of each valuation approach are considered and reconciled into a reasonable value estimate.

This Appraisal Report has been prepared in accordance with our interpretation of your institution’s guidelines and the Uniform Standards of Professional Appraisal Practice (USPAP).

Cushman & Wakefield of Nevada, Inc. has an internal Quality Control Oversight Program. This Program mandates a “second read” of all appraisals. Assignments prepared and signed solely by designated members (MAIs) are read by another MAI who is not participating in the assignment. Assignments prepared, in whole or in part, by non- designated appraisers require MAI participation, Quality Control Oversight, and signature.

For this assignment, Quality Control Oversight was provided by Steve Henry, MAI.

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COMMERCIAL OFFICE BUILDING SCOPE OF WORK

Report Option Description

USPAP identifies two written report options: Appraisal Report and Restricted Appraisal Report. This document is prepared as an Appraisal Report in accordance with USPAP guidelines. The terms “describe,” summarize,” and “state” connote different levels of detail, with “describe” as the most comprehensive approach and “state” as the least detailed. As such, the following provides specific descriptions about the level of detail and explanation included within the report:

• Summarizes the real estate and/or personal property that is the subject of the appraisal, including physical, economic, and other characteristics that are relevant • States the type and definition of value and its source • Summarizes the Scope of Work used to develop the appraisal • Summarizes the information analyzed, the appraisal methods used, and the reasoning supporting the analyses and opinions; explains the exclusion of any valuation approaches • States the use of the property as of the valuation date • Summarizes the rationale for the Highest and Best Use opinion

Valuation Process

There are three generally accepted approaches to developing an opinion of value: Cost, Sales Comparison and Income Capitalization. We considered each in this appraisal to develop an opinion of the market value of the subject property. In appraisal practice, an approach to value is included or eliminated based on its applicability to the property type being valued and the quality of information available. The reliability of each approach depends on the availability and comparability of market data as well as the motivation and thinking of purchasers.

This appraisal employs the Sales Comparison Approach and the Income Capitalization Approach. Based on our analysis and knowledge of the subject property type and relevant investor profiles, it is our opinion that these approaches should be considered applicable and/or necessary for market participants. Typical purchasers do not generally rely on the Cost Approach when purchasing a property such as the subject of this report. Therefore, we have not utilized the Cost Approach to develop an opinion of market value. The exclusion of this approach to value does not reduce the credibility of the assignment results.

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COMMERCIAL OFFICE BUILDING REGIONAL ANALYSIS

Regional Analysis

REGIONAL MAP

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COMMERCIAL OFFICE BUILDING REGIONAL ANALYSIS

Las Vegas Regional Analysis

Introduction

The following data is a compilation of 2nd Quarter 2020 indices and is provided for context as the most recent available for comprehensive consideration. We have also included supplemental data in this overview regarding more recent trends related to the evolving pandemic and market conditions.

The City of Mesquite is an outlying community to the Las Vegas Valley. Although closer to Utah in geographic proximity, it is within the State of Nevada and Clark County which has its own unique characteristics. The economic factors affecting the Mesquite area trickle down from what is occurring in the larger Clark County area and Las Vegas in specific. Therefore, I have included an overall regional overview of Clark County and the Las Vegas area and will consider the City of Mesquite specifically in a later discussion.

The Las Vegas-Henderson Combined Statistical Area is segmented into the Las Vegas-Henderson-Paradise Core Based Statistical Area (Las Vegas CBSA), Lake Havasu City-Kingman Metropolitan Statistical Area, and Pahrump Micropolitan Statistical Area. The Las Vegas metro, which is the subject of this analysis, consists solely of Clark County, which, in terms of population, is the largest of Nevada’s 17 counties. Las Vegas is the 28th most populated city in the United States at 2.3 million and is the most populated city in the state of Nevada.

Las Vegas, also known as The Entertainment Capital of the World, is famous for its grand casinos and hotels and related activities. It is one of the top three destinations in the United States for business conventions and a global leader in the hospitality industry, claiming more AAA Five Diamond hotels than any other city in the world. Las Vegas annually ranks as one of the world’s most visited tourist destinations and has an economy that relies heavily on tourism and gaming, which also feeds services industries, especially retail and dining. This benefit during a flourishing economy also makes it vulnerable during economic downturns when consumer spending often stalls.

Map The following map highlights the Las Vegas-Henderson-Paradise NV CBSA:

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COMMERCIAL OFFICE BUILDING REGIONAL ANALYSIS

Current Trends

Prior to the COVID-19 pandemic, the Las Vegas economy was well into recovery with continuing strong momentum. In 2019, the Las Vegas CBSA added 24,800 new jobs, rising 2.4% from the previous year. Growth had been broad- based, with the strongest growth in construction, education and health services, and professional and business services, helping to strengthen the local and state economy. Although gaming and entertainment dominate the economy in Las Vegas, low business costs were helping drive growth in industries other than tourism. Greater job opportunities as well as no personal income tax and a desirable climate were fueling the strong population growth.

More recent highlights include:

• After the March 2020 shut down of all non-essential businesses (including all casino’s and gaming industries) phased opening began in June. Despite the ability to open, hotel/casinos have rolled out slowly while some are still closed. Stations Casinos have put the Fiesta and Texas Station gaming/liquor licenses in non-operational status and plan to be closed for up to one year. The fate of the Palms and Fiesta Henderson is still unknown. • As of August 8, 2020, statewide Nevada unemployment claims increased weekly by 2.4% with a total of 335,968 continued claims or approximately 71.1% of jobs covered by UI. The statewide UI Trust Fund Balance is $444,825,388 resulting in almost 3.6 weeks of benefits in the trust fund. • Between 2017 and 2018, Las Vegas experienced a steady decline in visitor volume, however it bounced back in 2019 with 42.5 million visitors, a 1% increase from the previous year. As of June 2020, the LVCVA reported visitor volume was nearly 1.1 million visitors, a 70.5% decline year-over-year. Visitor volume has decreased significantly since the shut-down with total hotel room occupancy at 42.2%. The pandemic shut down has hit the hospitality industry hard ostensibly halting progress on The Drew Las Vegas as the project is reportedly now in default. • The 1.84 billion-dollar Las Vegas Raider’s stadium has been completed but will be closed to fans for the 2020 NFL season. Las Vegas now has another professional hockey team, the Henderson Silver Knights, a minor league, farm team for the Las Vegas Golden Knights. A new arena is under construction in Downtown Henderson but until that is complete, the team will play at the Orleans hotel/casino. Although the NHL has restarted games, the initial consideration to make Las Vegas a “Bubble City” was dashed when COVID cases increased in June and July as phased openings began and masks were not mandated. • Tesla Motors’ $5 billion Gigafactory in Northern Nevada is also a boost to the state’s economy. Las Vegas, along with other cities had been mentioned as a potential relocation site for Tesla headquarters but the final decision was for Austin, Texas. • The Las Vegas region’s proximity to nearby markets in California and Arizona have made it a desirable location for manufacturers and distributors. In 2018 and 2019 several large distribution centers, generally in the North Las Vegas area near the Speedway, were built for national tenants such as Sephora, Amazon, Sysco Foods, Caremark, LLC/CVS who alone are expected to add nearly 2,000 jobs. • In February 2020, the median sales price of single-family homes reached an all-time high of $316,000, $1,000 more than the peak in June 2006. As of the July 2020 Monthly Housing Market Update (Las Vegas Realtors/MLS report), the sale of pre-owned detached homes climbed 8.9% annually with a median price of $330,000. New listings are down 10.2% with approximately 1.4 months of supply (6 months is considered balanced). Although overall economic recovery is projected to be 18 to 36 months low inventory going into the crisis and low interest rates has resulted in steady demand.

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COMMERCIAL OFFICE BUILDING REGIONAL ANALYSIS

• In March 2019, the Boring Company proposed the Vegas Loop, “a high-speed underground public transportation system in which passengers are transported via compatible automated electronic vehicles (AEV)”. The $52.5 million project was initiated by the Las Vegas Convention Center (LVCC) and is expected to include two 1-mile long tunnels adjacent to each other, that will connect the New Exhibit Hall building to the South, North, and Central Hall. Three stations locations will offer convenient access between key LVCC destinations and nearby transportation connections. In February 2020, Boring completed the first tunnel and plans to complete the project by January 2021. Demographic Characteristics

The demographic profile of the Las Vegas-Henderson-Paradise NV CBSA suggests a slightly younger, less educated and less affluent population than the national average. With a median age of 37 years, Las Vegas is one year younger than the nation overall. On average, the region falls below the national average in terms of higher educational attainment. Las Vegas has a lower percentage of residents who have bachelor’s degrees, and likewise has a smaller percentage of residents who have advanced degrees. A relatively low educational attainment corresponds to median household incomes being less than the national average.

The following chart compares demographic characteristics of Las Vegas with those of the United States:

Demographic Characteristics Las Vegas CBSA vs. United States 2020 Estimates Las Vegas United Characteristic CBSA States Median Age (years) 37 38 Average Annual Household Income $77,950 $87,636 Median Annual Household Income $57,845 $60,811 Households by Annual Income Level: <$25,000 19.4% 20.3% $25,000 to $49,999 24.1% 21.4% $50,000 to $74,999 20.2% 18.0% $75,000 to $99,999 13.8% 13.0% $100,000 plus 22.5% 27.2% Education Breakdown: < High School 15.1% 13.0% High School Graduate 29.3% 27.6% College < Bachelor Degree 32.7% 29.0% Bachelor Degree 15.4% 18.9% Advanced Degree 7.6% 11.5% Source: © 2020 Experian Marketing Solutions, Inc. •All rights reserved• Cushman & Wakefield Valuation & Advisory Population

Net in-migration into the Las Vegas area has been the result of rapid population growth in the past. This is due the lower cost of living, job opportunities, no state tax and housing availability. However, during times of high unemployment, such as during the last recession, people leave almost as rapidly as they come. If high unemployment continues in the Las Vegas area, we could see an exodus again as people leave to find work or move back to where family is located.

According to the Census Bureau, between July 1, 2017 and July 1, 2018, the Las Vegas CBSA population measured over 2.2 million, adding approximately 48,000 new residents. Clark County recorded the second largest

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COMMERCIAL OFFICE BUILDING REGIONAL ANALYSIS

increase than any U.S county. Las Vegas’ population grew measurably faster than the U.S. over that period as well. Between 2010 and 2018, Clark County was also the fourth largest in population growth. Despite the COVID-19 pandemic, the population growth is still projected to significantly exceed U.S. population growth between 2020 and 2024. However, regional experts forecast population growth will not be a driver of economic growth as it was throughout much of Las Vegas’ history. Rather, economic growth will drive population for the next few years.

The following chart compares population growth between the Las Vegas CBSA and the United States prior to the COVID-19 pandemic:

POPULATION GROWTH BY YEAR Las Vegas CBSA vs. United States, 2009-2024 3.0% United States Las Vegas, NV Forecast

2.4%

1.8%

1.2%

0.6% Annual Annual Percent Change

0.0% 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Source: Data Courtesy of Moody's Analytics and Cushman & Wakefield Valuation & Advisory Note: Shaded bars indicate periods of recession

The following table shows Las Vegas’ annualized population growth prior to the COVID-19 pandemic:

Annualized Population Growth by County Las Vegas CBSA 2009-2024 Compound Compound Annual Growth Annual Growth Forecast Forecast Rate Rate Population (000’s) 2009 2019 2020 2024 09-19 20-24 United States 306,771.5 328,239.5 330,035.2 337,009.4 0.7% 0.5% Las Vegas, NV 1,939.4 2,266.7 2,315.1 2,455.5 1.6% 1.5% Clark County 1,939.4 2,266.7 2,315.1 2,455.5 1.6% 1.5% Source: Data Courtesy of Moody's Analytics, Cushman & Wakefield Valuation & Advisory

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COMMERCIAL OFFICE BUILDING REGIONAL ANALYSIS

Households

Demographers expect the U.S. economy to experience sharp upward increases in household formations as the millennial generation (those born roughly between 1982 and 2004 roughly) reaches maturity. Household formation in Las Vegas was on the rise over the past decade averaging 1.5%. Stagnant residential construction activity during the economic downturn created a limited supply of available homes. Once job and income growth improves, construction is anticipating to pick up and start reach a full recovery by 2022. Between 2020 and 2024, Las Vegas is expected to improve, averaging 2%.

The following graph compares historical and projected growth trends in household formation between Las Vegas CBSA and the U.S. overall prior to the COVID-19 pandemic:

HOUSEHOLD FORMATION BY YEAR Las Vegas CBSA vs. United States, 2009-2024

3.0% United States Las Vegas, NV Forecast

2.4%

1.8%

1.2%

Annual Annual Percent Change 0.6%

0.0% 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Source: Data Courtesy of Moody's Analytics and Cushman & Wakefield Valuation & Advisory Note: Shaded bars indicate periods of recession

As we moved into the reopening and recovery phases in late May 2020, home sales were down but mortgage applications were above 2019 levels by nearly 19%. With the stock market recovering from initial stress, low mortgage rates, lack of inventory and pent-up demand, national housing could be one sector that sees a “V” recovery. However, according to a July 28, 2020 Moody’s Analytics webinar on COVID-19 Housing and the Mortgage Market, regions that have been more adversely affected by shut downs and those with higher level unemployment rates such as Nevada are anticipated to have annual price decreases over the next 12 months.

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The Las Vegas housing market was reporting strong appreciation but also is leading the nation in unemployment.

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According to Tim Sullivan, Senior Managing Principal at Hanley Wood – Metrostudy, “things could get more bumpy later in the year and DURATION is still our rallying cry and if that happens, remember these for the housing market:”

• Our home is our hedge against the unknown but the ability to own is still critical • Mortgage rates are at the lowest level ever and are expected to stay there • 49% of Millennials do not own • Housing is still a good investment if people can hold it long enough • The worst housing crisis or our lifetime didn’t kill the American Dream of home ownership. This recession won’t either

The Multifamily market had been strong in Las Vegas and was stable in large part due to stimulus and unemployment insurance benefits. However, as conditions continue, the concern is that renters are using credit to pay bills. Although evictions for non-payment are currently on hold until September, Congress has not yet agreed on the next round of supplemental assistance. Due to our tourist heavy employment, Las Vegas was identified early as high in risk for rent changes.

Fortunately, Las Vegas is “not as bad as it could be” because it does not have a high level of multi-family units underway. This is illustrated in the following graph comparing Las Vegas to other hospitality metro areas.

However, according to a July 31, 2020 Costar Analytics report, Las Vegas is one of several cities where no multifamily groundbreaking occurred in the 2nd Quarter while lenders, developers and investors took a pause to take

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stock of portfolios rather than looking to add them. According to the July 7,2020 Costar State of the US Apartment Market Update, deal volume in Las Vegas decreased 99 percent

Although predicting price/unit trends in this sector is volatile, returns on repeat trades do suggest that apartment prices fell during the 2nd Quarter.

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Further, areas with seasonality factors in leasing and higher rates of unemployment are also more immediately affected. Las Vegas is among this category as well, so the larger national multifamily woes will not only be expected in Las Vegas, but they are most likely to be exacerbated by a wide variety of larger local employment and economic factors.

Gross Metropolitan Product

The Las Vegas economy is heavily reliant upon consumer spending and is highly sensitive to national and international economic conditions. Between 2015 to 2019, the region outpaced the national GMP levels. Over the next five years, Las Vegas was projected to continue to surpass the country, averaging 6.7%. This projection will likely change as the impact of the pandemic plays out in our local economy. As always, the call for diversification of the local economy, away from tourist-related and consumer-driven industries, continues to be heard in the hopes that this broaden the job base and strengthen the CBSA against cyclical volatility. The graph below depicts the fluctuations in real gross product within the Las Vegas CBSA as compared to the national average.

REAL GROSS PRODUCT GROWTH BY YEAR Las Vegas CBSA vs. United States, 2009-2024 14.0% United States Las Vegas, NV Forecast 10.0%

6.0%

2.0%

-2.0%

Annual Annual Percent Change -6.0%

-10.0% 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Source: Data Courtesy of Moody's Analytics and Cushman & Wakefield Valuation & Advisory Note: Shaded bars indicate periods of recession

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Tourism and Convention Industry

Tourism and conventions are the primary industry in Las Vegas providing the majority of the jobs. Since the COVID- 19 pandemic, all indices related to this industry have experienced sudden and significant decreases. The following table (most recent published) shows the July 2020 tourism data from the Las Vegas Convention and Visitors Authority, McCarran International Airport, the Nevada Gaming Control Board and the Nevada Department of Transportation.

Most notably the convention and hotel business went from robust to statistically nonexistent. With the hotel/casinos now coming back online, reduced capacity due to social distancing is expected to limit income and slow the recovery process. As of the first week of August, 12 major hotel/casino properties, owned by MGM Resorts, Caesars, Station Casinos and Boyd Gaming, are dark and will remain so indefinitely due to persistent low occupancy rates that hover as low as 30% on weekdays.

Station Casinos has kept closed 4 of its properties that are locally focused with an annual difference in current occupancy rates of 54% as compared with last year at 90%. Boyd Gaming has opened all but 3 of 29 properties statewide, all of them in Southern Nevada, due to an overall operating level at approximately 50% capacity. In the resort corridor area, the Caesars group is not yet taking room reservations for the Cromwell, Planet Hollywood, Rio and Linq hotels. The CEO is citing occupancy rates for their properties around 50% mid-week and high 70% range on the weekend. For the properties that are open, more money is coming in than going out but they are unsure when they will open the others and they are still planning on selling one of their Strip assets in the next 12 to 18 months. MGM/Mirage has yet to open the Mirage or Park MGM/Nomad hotel. As of June, the properties they did open are cashflow positive with the exception of the Mandalay Bay. With occupancy rates hovering in the 30% range mid-week and 50% range on weekends, they are unsure when they will have all properties open.

With concerns about a resurgence of the COVID-19 virus in the Fall, events such as sports, concerts and conventions are less certain so future bookings may be limited. CES (the world’s largest tech conference) had initially reported a plan to attend in January 2021 but has now announced it will be online only in 2021, not returning to Las Vegas until 2022. When major conventions return will depend largely on the trend of infection rates over the next 6 to 12 months and when a vaccine will be available.

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The Center for Business and Economic Research at UNLV estimates that the Southern Nevada tourism industry will lose about $17 billion based on the assumption that the average visitor’s spending habit would have remained the same as from 2018.

McCarran International Airport

McCarran International Airport is the main public airport use in the Las Vega valley, located approximately 5 miles south of Downtown Las Vegas. The airport was originally built in 1942 but has been renovated and upgraded numerous times since. The overall site currently consists of 2,800 acres. The airport has four runways, 110 aircraft gates and two passenger terminals as well as an air cargo center and helicopter companies.

Passenger traffic was down at McCarran 64.0% over the same time last year. However, by August, scheduled daily air arrivals into Las Vegas is slated to increase to more than 330, an increase from the low point in May of 110, 200 in June and 280 in July. On the following page is the latest news release for arriving and departing passenger travel as of July 2020.

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According to a July 25, 2020 week ending Costar report, an overall national increase in leisure travel had resulted in improved weekend hotel occupancy of 55.8% but RevPAR is still 54.8% below prior years and the rate of improvement has slowed.

Occupancy rate improvement has also stalled and is behind China and only slightly above Europe which was slower to open and has been imposing more public mask mandates with lower rates of COVID-19 cases. Since Las Vegas competes for international travel, this trend creates additional challenges to the recovery of the local hotel/casino sector.

Average Daily Rate has rebounded in the US but most of the rebound has been in the midscale and economy sector as opposed to Luxury and Upper-Up scale categories which signals less corporate/group travel. Air travel was improving with a modest reversal from March when cancellations were exceeding bookings. According to data presented by Statista, as of July 27, 2020, the number of scheduled flights worldwide was down by 50 percent annually. Prior to COVID, the growth of revenue ton-miles for international flights by U.S. Commercial air carriers was estimated to be roughly 4% but due to the persisting COVID shocks, passenger aviation is expected to lose approximately 314 billion U.S. dollars in 2020.

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Employment Distribution

Las Vegas employment is one of the least diverse CBSAs in the nation, heavily dependent upon tourism, specifically entertainment and gaming. Leisure and hospitality accounts for 26% of the employment base, compared to 9.4% of the nation. The lack of diversity has become evident during the Pandemic, as Las Vegas is posting record high unemployment rates. Tourism will remain the economic engine for the region; however, secondary industries will provide some diversity in the region. Manufacturing has gotten a boost due to the presence of major national tenants such as Amazon and Sephora, creating over 1,000 full-time jobs. Job growth in manufacturing was expected to top the national average over the next two years.

The following graph compares non-farm employment sectors for the Las Vegas CBSA and U.S. as a whole:

EMPLOYMENT BY SECTOR Las Vegas CBSA vs. United States 2020 Estimates Construction Manufacturing Trade, Transportation & Utilities Information United States Financial Activities Las Vegas, NV Professional & Business Services Education & Health Services Leisure & Hospitality Other Services (except Govt.) Government 0% 5% 10% 15% 20% 25% 30%

Source: Data Courtesy of Moody's Analytics and Cushman & Wakefield Valuation & Advisory

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Major Employers

The Las Vegas region is presently home to four Fortune 500 companies: Las Vegas Sands (235), MGM Resorts International (249), Caesar’s Holdings (363) and Wynn Resorts (454). Four other companies including Pinnacle Entertainment (701), Scientific Games (711), Boyd Gaming (728), and Southwest Gas Holdings (757) are all local businesses that fall within the Fortune 1000. The following table lists the Las Vegas MSA’s largest employers, and illustrates the significant impact of the regional gaming employment concentration:

Largest Employers Las Vegas-Henderson-Paradise, NV No. of Company Employees Business Type MGM Resorts International 53,157 Entertainment/Gaming Caesars Entertainment Corp. 30,000 Entertainment/Gaming Station Casinos Inc. 14,000 Entertainment/Gaming Wynn Las Vegas LLC 12,000 Entertainment/Gaming Boyd Gaming Corp. 11,700 Entertainment/Gaming Las Vegas Sands Corp 8,600 Entertainment/Gaming Bellagio LLC 7,750 Entertainment/Gaming The Valley Health System 7,463 Healthcare Aria Resort & Casino 7,250 Entertainment/Gaming Mandalay Bay Resort & Casino 7,250 Entertainment/Gaming Source: Data Courtesy of Moody's Analytics; Cushman & Wakefield Valuation & Advisory According to RCG Economics and the Bureau of Labor Statistics, the following graph shows monthly and annual job growth by sector as of April 2020 in the Las Vegas MSA. As illustrated, each sector has been negatively impacted, with the Leisure & Hospitality sector most notably so.

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Employment Growth

As of June 2020, total non-farm employment declined 13.8% year-over-year, losing 142,200 jobs. Job loss was led by leisure and hospitality, dropping 27.9% over the previous year, losing 82,700 jobs. Professional and business services declined 16.5% year-over-year, losing 24,400 jobs. However, manufacturing experienced a slight boost with a 3.2% increase, adding 220 jobs from the previous year. Over the next five years, employment growth is anticipated to improve and surpass national growth between 2022 and 2024, reaching an annual average of 4.2%.

The following graph illustrates total non-farm employment growth per year for the Las Vegas CBSA, and the U.S.:

TOTAL EMPLOYMENT GROWTH BY YEAR Las Vegas CBSA vs. United States, 2009-2024 10.0% United States Las Vegas, NV Forecast

5.0%

0.0%

-5.0%

-10.0% Annual Annual Percent Change

-15.0% 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Source: Data Courtesy of Moody's Analytics and Cushman & Wakefield Valuation & Advisory Note: Shaded bars indicate periods of recession

Unemployment

According to the Bureau of Labor Statistics, as of June 2020, the seasonally adjusted unemployment rate dropped 13.6 percentage points over the previous year to 18%. Unemployment in Las Vegas typically trends alongside the state average; as the region and the state are over-reliant upon consumer spending and highly susceptible to national economic conditions. Unemployment in Las Vegas was anticipated to slightly increase but remain below the state in the near term.

Unemployment trends in Las Vegas CBSA are summarized in the following graph:

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UNEMPLOYMENT RATE BY YEAR Las Vegas CBSA vs. Nevada vs. United States, 2009-2024 22% United States Nevada Las Vegas, NV Forecast

18%

14%

10%

2% 09 10 11 12 13 14 15 16 17 18 19 20* 21 22 23 24

Source: Data Courtesy of Moody's Analytics and Cushman & Wakefield Valuation & Advisory Note: Shaded bars indicate periods of recession *Second Quarter 2020

The Las Vegas workforce is heavily skewed toward the industries hit the hardest and is not a market that supports a stay at home workforce.

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Due to the Pandemic outbreak and the government mandated closures of non-essential business, unemployment increased to 33.5% by April. According to the U.S. Bureau of Labor Statistics, the pandemic related unemployment in Nevada and Clark County was well above national averages in May as well.

According to RCG Economics, the seasonally adjusted June unemployment rate in the Las Vegas MSA was approximately 18%, higher than the total state rate of 15%.

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As of the week ending August 8, 2020, initial unemployment claims climbed by 29.3% and continued claims increased 2.4% from one week prior. Pandemic Emergency Unemployment Compensation claims decreased 15.3% and State Extended Benefit claims increased 22.9%. The UI Trust Fund Balance is $444,825,388 up $6,330,087 from the prior week with an estimated 3.6 weeks of benefits left.

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The highest 20 weeks of the State’s unemployment history include 18 weeks in 2020 as shown in the chart below. What is notable are the persistent claims in June and July even after phased re-openings.

Perhaps even more concerning, is the decrease in tax revenue normally generated by the hotel/casino/convention industry. According to an April 29, 2020 article in the Nevada Independent, gambling taxes make up 18% of the state general fund revenue (not counting other revenues that flow from the hospitality industry such as sales tax). Officials at the Nevada Resort Association say the hospitality industry generates about 39% of the state’s general fund revenue. Following is a chart presented in this article illustrating the major sources of revenue for the estimated 2019 $8.8 billion budget.

According to the most recent Nevada Gaming Control Monthly Revenue for June 2020 (the most recent available) the taxable revenue between April 1, 2020 and June 30, 2020 is 77.5% lower than one year prior. In Clark County alone, the figures range from approximately 70% to 90%. This is illustrated in the table below.

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Conclusion

The COVID-19 pandemic has resulted in a sharp and drastic unemployment rate and unprecedented losses of revenue in our primary hospitality/gaming/convention industry. As businesses entered the re-opening phases, unemployment figures were reversing but Las Vegas still leads the nation in unemployment. Pertaining to real estate specifically, tenant income losses (business or personal) are expected to result in continued cash flow disruption with uncertainty about when or if businesses will return to full capacity. The severity of these impacts are property specific with some types impacted more than others.

Further Las Vegas specific data will become available as market watchers compile data and monitor trends and revise projections. For now, the initial projections for V-shaped recovery were modified to U-shaped and are now being described as “Swoosh” shape as we are officially in a recession and when we will return to “normal” trends is not yet certain. As of this date, COVID-19 cases in Clark County have prompted the Governor to mandate masks in public. The NHL was considering Las Vegas as a “bubble city” for resumption of play but decided against this due to rising COVID cases. Travel has resumed and pools at hotels are reportedly opened and busy which has raised further concerns about spreading the virus. As other states are reporting a rise in healthcare concerns, states like Nevada are being watched closely to see what the impact of continued spread has on the local healthcare system and the overall economy.

Las Vegas still has some fundamental advantages in comparison to neighboring states and the trend in national migration has been to the southwest. Las Vegas was severely impacted by the Great Recession and learned some lessons which has led to less existing supply, a more modest pipeline and overall strong economic factors prior to this Pandemic crisis. The full effects of these past few months is not yet fully known but most market participants are reporting a pause/hold on new transactions with a cautious optimism for returning to pre-pandemic numbers in 2022 or 2023.

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Local Area Analysis

LOCAL AREA MAP

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Mesquite Overview The subject is located in the City of Mesquite, north of Interstate 15. Generally, the boundaries of the immediate area are the city limits, primarily consisting of the Nevada and Arizona state line to the east, the Highway 170 to the south, the edge of development along with the Clark County/Lincoln County boundary to the north and State Highway 170 to the west.

Access

Local area accessibility is generally good, relying on the following transportation arteries: Local: Hafen Lane, Riverside Road, Mesquite Boulevard and Interstate 15

The main roadways providing access to the subject are Hafen Lane and Riverside Road. Interstate 15 is just west and north of the subject with multiple access ramps in the area. I-15 provides access to southwest Las Vegas and northeast to Arizona and Utah. The subject site is considered to have good accessibility to all sections of the Mesquite area.

Immediate Surrounding Land Uses

• To the north and south of the subject are single-family residential subdivisions. • To the west of the subject is vacant land. • To the east of the subject is a vacant parcel of land and single-family and mobile home residences. • The southeast corner of Hafen Lane and Riverside Road consists of a multi-tenant retail strip center.

AERIAL VIEW OF SUBJECT SITE AND SURROUNDING LAND USES

The subject is in a more residential area, more centrally located, that has seen less newer development than areas north of I-15. The area northwest of the subject, beyond I-15 contains the hospital, an office/retail complex and the Walmart Super Center. Within this center, a new carwash was built and Boulevard furniture purchased a corner

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site for new construction. This area is just north of the second exit off of I-15 in close proximity to the Casablanca hotel/casino.

AERIAL VIEW OF SUBJECT AREA

Subject

Basic Information - City of Mesquite

• Extreme Northeast corner of Clark County • Approximately 80 miles northeast of Las Vegas along Interstate 15 • On the Northwest border of Arizona • Approximately 35 miles from St. George, Utah • Located along the Virgin River • Classified as a high desert region • Average days over 90 degrees are 133 and under 32 degrees are 38 • Average of 331 days of sunshine • Average relative humidity ranging from 15 to 44 percent • Annual average rainfall of 4.5 inches

Local Area Characteristics

The City of Mesquite is located approximately 80 miles northeast of Las Vegas near the borders of Nevada, Arizona and Utah. The city is located in the Virgin River Valley and is the home to a growing retiree population. The city was incorporated in May 1984 and had its origins in farming. The Peppermill Mesquite casino, which opened in the 1970s, drove Mesquite’s diversified economy. In the mid-1990s, more casinos opened. By 2006, Mesquite was one

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of the fastest-growing small towns in the United States, but by the late 2000s, recession led to the closure of both the Mesquite Star and Oasis casinos.

The City of Mesquite is situated along Interstate 15 which connects Arizona and Utah as well as California to the south through Nevada. The City of Mesquite has only one major roadway, Mesquite Boulevard, that runs parallel to Interstate 15 for portions of the city. A second commercial/commuter roadway known as Pioneer Boulevard has added to north/south travel on the north side of the freeway. There are currently three exits from I-15, including a newer ramp at the entrance to town that provides access to the industrial/commercial park. The intersection of this ramp now has a new truck stop with gas, mini market and fast food restaurants. This ramp provides improved access to the industrial area for larger vehicles and trucks. Another new gas station is located near the second exit on the south side of I-15.

Mesquite is home to several hotels/casinos including: Virgin River Hotel/Casino, CasaBlanca Hotel/Casino, Eureka Hotel/Casino, Golden West Casino (small locals tavern style with no hotel rooms), Rising Star Hotel (hotel only with food/wine, no gaming) and Stateline Casino and Motel (small locals style).

The Virgin Valley Heritage Museum has exhibits about area pioneers and local history. The museum building was built in 1940 and is listed in the National Register of Historic Places. Mesquite is a stopping point for those traveling along Interstate 15 between Salt Lake City, Las Vegas and Los Angeles. Mesquite is also a destination for golfers. With over 9 public courses set into the desert, it draws golfers from all over. Mesquite Airport provides facilities for general aviation and skydiving.

The City of Mesquite is within the Clark County School District. There are two elementary schools, one middle school and one high school as well as a campus of the Community College of Southern Nevada.

The Valley is the site of numerous golf courses and festivals. The distance to nearby attractions is summarized here:

• Las Vegas: 80 miles northeast of Las Vegas • Death Valley National Park: 213 miles east of the Death Valley National Park • Lee Canyon Ski Area: 95 miles southwest • Valley of Fire State Park: 35 miles southwest • Lake Mead, North Shore: 30 miles southwest • St. George, Utah: 35 miles northeast • Cedar City, Utah: 80 miles northeast

The City of Mesquite has one hospital, Mesa View Hospital, a 25 bed, critical access hospital that also serves the surrounding communities of Littlefield, Logandale and Overton. The community benefits from baseball fields, community centers and area community parks. In addition, a bowling facility, casinos and restaurants are available for public use.

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City of Mesquite Survey Area Zip Code 89027 2018 State of NV certified - 22,557 2019 numbers not published 2020 Census pending Population Per City Manager they calculate a maximum potential population of 26,000 to 27,000 based on housing units if fully occupied so they estimate a more probable population of 24,000 +/- County Seat Clark County

Population has generally increased by 4.00 percent or greater with some periods of more significant growth and years with negative growth.

As of the 2010 Census, the average household size in Mesquite was 2.38 persons, lower than Clark County and State of Nevada averages. The city of Mesquite is predominantly a retirement community with only 28 percent of total families having children. The median age was 52.4 and over half (57%) of housing units were labeled as seasonal, recreational or occasional use. Approximately 1,446 housing units were considered seasonable which represented approximately 12.56 percent of the total housing stock. In addition, there are occupied housing units that are seasonal with unquantified estimates putting the seasonal or part time population of Mesquite at as much as 30 percent.

As of June 2012, population forecasts were opined as follows. Although all 3 sources were deemed reliable it was concluded that population would be mid-range within these 3 estimates.

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The subject is in an area zoned for professional office use.

ZONING MAP

Most of the construction permits are in the residential market sector. Most of the housing units are occupied by owners with median incomes lower than county, state or national figures.

Major employers are the CasaBlanca, Virgin River and Eureka Casinos, Walmart, Clark County School District, Mesa View Hospital, City of Mesquite, Primex Plastics, Highland Manor, Do it Best, Rising Star Sports Ranch and Deep Roots Medical.

During my conversations with buyers, sellers and brokers of commercial and industrial property in Mesquite they all cited the same challenges to getting major businesses and new developments to Mesquite as the limited population and effects of seasonal vacancy. This will be further discussed in the valuation of the subject.

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Conclusion

The subject is a primarily vacant, commercial building originally built as a medical clinic with a surgery center. Currently the health district is occupying a small portion of the building and the Mesquite Veterans Center is using the northwest portion of the site. The subject is located in the City of Mesquite. New home development is occurring, but population is still lower than what many major retailers require and seasonal vacancy has been a challenge to small retail business survival. Two major employers were eliminated with the closing of two casinos (Oasis and Mesquite Star) but one re-opened as a hotel and sports complex and a new truck stop/fast food restaurant was added when the third I-15 exit was completed. Industrial development has been minimal, mostly in small owner user properties or self-storage facilities.

Mesquite is considered to be a bedroom community to Las Vegas and St. George as well as a popular option for retirees. The Mesquite market follows the trends in Las Vegas and St. George, but due to size and location has less capacity for overall rebound independent of these markets and a smaller economic base.

The residential market is reportedly improving with some new home development occurring. The industrial markets may follow with some potential for retail use when population levels reach a higher critical mass. As of the current date, the subject sites are speculative unless an owner user acquires them. Based on current rental rates and construction costs speculative retail development is not clearly feasible. However, the sites are finished pad sites with utilities and onsite improvements at what is the prime commercial/retail intersection in the Mesquite area.

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Las Vegas Office Market Analysis

Introduction

Data for the following analysis of the Las Vegas Office market is provided by Reis, Inc., a leading provider of commercial real estate market information since 1980. Reis’ proprietary database includes trends, forecasts, news and analyses for approximately 200,000 commercial properties in 232 metropolitan markets (4 property types multiplied by 58 metropolitan areas) and roughly 2,500 submarkets. Current and historical figures are compiled by highly qualified industry analysts. Surveyors, as they are called, are responsible for gathering information on property availabilities, rents and lease terms, etc. by directly contacting owners, managers and leasing agents. Projected data is calculated using a suite of economic forecasting models developed by The Economic Research Group, a team led by Ph.D. economists. Reis’ data is released on a quarterly basis, and is widely recognized as a fundamental tool for appraisers throughout the country.

Las Vegas Office Market

Reis, Inc. classifies the Las Vegas Office market into seven submarkets, and it segregates inventory by type of space (Class A versus Class B/C). The subject is located outside of the Las Vegas Valley but would have rental rates most similar to what is noted in the East/Central Las Vegas submarket.

Submarket Snapshot

The Las Vegas Office market contains 26,348,000 square feet of space. West is the largest submarket, comprising 19.4 percent of the area's total inventory. Downtown is the smallest submarket with 5.9 percent of total inventory. We have selected the East/Central submarket in Las Vegas as it is most similar to Mesquite. This submarket contains 4,706,000 square feet or 17.9 percent of the region’s inventory. As of second quarter 2020, the East/Central Las Vegas submarket has a vacancy rate of 27.2 percent and an average rental rate of $27.01 per square foot gross. The following table presents the geographic distribution of inventory, along with other statistical information.

GEOGRAPHIC DISTRIBUTION OF INVENTORY No. of Inventory % Vacancy Net Asking Rent Submarket Class Buildings (SF) Total Rate (%) Absorption ($/SF) Airport A 1,947,000 7.4 24.1 -7,000 $26.34 Airport B/C 2,152,000 8.2 35.0 -30,000 $20.70 Airport A/B/C 127 4,099,000 15.6 29.8 -38,000 $23.41 Downtown A 1,066,000 4.0 25.6 0 $32.68 Downtown B/C 495,000 1.9 24.6 1,000 $24.90 Downtown A/B/C 28 1,561,000 5.9 25.3 1,000 $30.19 East/Central Las Vegas A 2,001,000 7.6 20.7 -8,000 $34.77 East/Central Las Vegas B/C 2,705,000 10.3 32.0 -66,000 $21.22 East/Central Las Vegas A/B/C 69 4,706,000 17.9 27.2 -75,000 $27.01 Northwest A 2,013,000 7.6 18.2 36,000 $28.76 Northwest B/C 1,357,000 5.2 21.4 9,000 $23.08 Northwest A/B/C 83 3,370,000 12.8 19.5 46,000 $26.49 Southeast A 2,355,000 8.9 18.4 27,000 $30.48 Southeast B/C 1,298,000 4.9 22.0 26,000 $23.14 Southeast A/B/C 82 3,653,000 13.9 19.7 53,000 $27.85 Southwest A 2,449,000 9.3 25.1 3,000 $30.13 Southwest B/C 1,389,000 5.3 25.6 16,000 $18.86 Southwest A/B/C 91 3,838,000 14.6 25.3 18,000 $26.06 West A 2,675,000 10.2 13.0 -12,000 $25.52 West B/C 2,446,000 9.3 24.0 -82,000 $17.74 West A/B/C 147 5,121,000 19.4 18.3 -95,000 $21.78 Total A A 14,506,000 55.1 20.1 39,000 $29.47 Total B/C B/C 11,842,000 44.9 27.5 -126,000 $20.71 Total/Average A/B/C 627 26,348,000 100.0 23.5 -87,000 $25.53 Source: © Reis, Inc. 2020 Reprinted with the permission of Reis, Inc. All Rights reserved.

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Construction Completions

In the East/Central Las Vegas submarket, no new space was completed between 2015 and 2019. This trend is similar to the Mesquite market which has not expanded over the last 5 years. The following table presents historical inventory and projected completions for the East Central Las Vegas submarket:

HISTORICAL AND PROJECTED INVENTORY & COMPLETIONS (SF) Las Vegas East/Central Las Vegas Total Total % of Year Class A Completions Class B/C Completions Completions Class A Completions Class B/C Completions Completions Region 2015 13,981,000 46,000 11,825,000 0 46,000 2,001,000 0 2,705,000 0 0 0.0% 2016 14,022,000 52,000 11,825,000 0 52,000 2,001,000 0 2,705,000 0 0 0.0% 2017 14,022,000 0 11,873,000 70,000 70,000 2,001,000 0 2,705,000 0 0 0.0% 2018 14,288,000 266,000 11,823,000 0 266,000 2,001,000 0 2,705,000 0 0 0.0% 2019 14,348,000 60,000 11,842,000 19,000 79,000 2,001,000 0 2,705,000 0 0 0.0% 2Q20 14,506,000 0 11,842,000 0 0 2,001,000 0 2,705,000 0 0 0.0% 2020 ------258,000 ------0 0.0% 2021 ------0 ------0 0.0% 2022 ------0 ------0 0.0% 2023 ------201,000 ------12,000 6.0% 2024 ------236,000 ------13,000 5.5% 2015-2019 Total Completions 424,000 89,000 513,000 0 0 0 Annual Average 84,800 17,800 102,600 0 0 0 0.0% Source: Reis, Inc.

Vacancy Rates

As shown in the following chart, vacancy rates will rise in the East/Central Las Vegas submarket in the near term and are higher than the larger valley vacancy rates. Information about Mesquite vacancy rates are not available but based on our knowledge of supply and demand, a more stable trend for vacancy is expected in the Mesquite market area.

HISTORICAL AND PROJECTED VACANCY RATES (%) Las Vegas East/Central Las Vegas Year Class A Class B/C Total Class A Class B/C Total 2015 25.8 24.7 25.3 19.7 26.3 23.5 2016 23.7 23.0 23.3 17.2 24.5 21.4 2017 21.5 25.7 23.5 15.5 28.9 23.2 2018 21.8 26.2 23.8 27.5 23.5 25.2 2019 20.9 25.9 23.1 22.2 26.5 24.7 2Q20 20.1 27.5 23.5 20.7 32.0 27.2 2020 ------25.8 ------28.6 2021 ------26.9 ------29.5 2022 ------27.4 ------30.1 2023 ------26.7 ------29.6 2024 ------25.8 ------29.1 Source: Reis, Inc. Note: Reis does not differentiate between space that is available directly from the landlord or as a sublease. Any space that is available immediately for leasing (i.e. within 30 days) is considered vacant by Reis' standards.

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COMMERCIAL OFFICE BUILDING LAS VEGAS OFFICE MARKET ANALYSIS

Absorption

The following table presents historic and projected absorption levels and completions for the region and East/Central Las Vegas submarket.

HISTORIC AND PROJECTED NET ABSORPTION (SF)

Las Vegas East/Central Las Vegas Total Total Total Total Year Class A Class B/C Absorption Completions Class A Class B/C Absorption Completions 2015 -99,000 214,000 115,000 46,000 2,000 -30,000 -28,000 0 2016 329,000 202,000 530,000 52,000 50,000 49,000 99,000 0 2017 300,000 -291,000 10,000 70,000 34,000 -119,000 -85,000 0 2018 177,000 -99,000 78,000 266,000 -240,000 146,000 -94,000 0 2019 174,000 58,000 231,000 79,000 105,000 -81,000 24,000 0 2Q20 39,000 -126,000 -90,000 0 -8,000 -66,000 -75,000 0 2020 ------516,000 258,000 ------184,000 0 2021 ------278,000 0 ------44,000 0 2022 ------145,000 0 ------27,000 0 2023 ------343,000 201,000 ------34,000 12,000 2024 ------401,000 236,000 ------32,000 13,000 2015-2019 Total Absorption 881,000 84,000 964,000 513,000 -49,000 -35,000 -84,000 0 Annual Average 176,200 16,800 192,800 102,600 -9,800 -7,000 -16,800 0 Source: Reis, Inc. Between 2015 and 2019 no new space was completed in the East/Central Las Vegas submarket and there was a negative overall absorption. This is expected to continue over the next 5 years. The East Central submarket in Las Vegas does compete with other superior areas so this trend is considered to be inferior to what would be experienced in Mesquite. Although the Mesquite area has a limited renter pool, there is a minimal supply of office space so the trends for absorption and construction are expected to be more balanced.

Rental Rates

Rental rates in the East/Central Las Vegas submarket increased from an average of $26.03 per square foot in 2015 to $26.99 per square foot in 2019, demonstrating a CAGR of 0.9 percent. Over the next five years, average rents are expected to decrease. The following table presents historical and projected asking rental rates for the region and the East/Central Las Vegas submarket. The Mesquite area rental rate trends will also experience stagnation or decreases due to the pandemic related conditions.

Historical and Projected Average Asking Rental Rates ($/SF) Las Vegas East/Central Las Vegas % Effective % Effective Year Class A Class B/C Total Change Rent Class A Class B/C Total Change Rent 2015 $28.24 $19.33 $24.15 1.1 $18.38 $34.85 $19.50 $26.03 1.1 $21.35 2016 $28.57 $19.86 $24.59 1.8 $18.78 $35.15 $20.22 $26.57 2.1 $21.86 2017 $28.64 $20.02 $24.68 0.4 $18.87 $34.75 $20.28 $26.43 -0.5 $21.64 2018 $29.10 $20.33 $25.13 1.8 $19.22 $35.21 $21.04 $27.07 2.4 $22.11 2019 $29.48 $20.74 $25.53 1.6 $19.57 $34.86 $21.17 $26.99 -0.3 $22.07 2Q20 $29.47 $20.71 $25.53 -0.5 $19.49 $34.77 $21.22 $27.01 -0.1 $22.07 2020 ------$24.06 -5.8 $17.56 ------$26.01 -3.6 $20.52 2021 ------$24.00 -0.2 $17.38 ------$25.95 -0.2 $20.31 2022 ------$24.34 1.4 $17.60 ------$26.18 0.9 $20.41 2023 ------$24.75 1.7 $18.00 ------$26.46 1.1 $20.69 2024 ------$25.20 1.8 $18.47 ------$26.74 1.1 $21.03 2015-2019 CAGR 1.08% 1.78% 1.40% 0.01% 2.08% 0.91% Source: Reis, Inc. Notes: CAGR stands for Compound Annual Growth Rate. Asking rents cited by Reis reflect the advertised rental rates for actively marketed space. Effective rents net of any rental concessions, expressed over the life of the lease term. Reis quotes Office rents on a Gross basis.

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COMMERCIAL OFFICE BUILDING LAS VEGAS OFFICE MARKET ANALYSIS

New Construction Activity

According to Reis, 264,131 square feet of space were recently completed within the Las Vegas market. An additional 2,743,336 square feet of space is planned in 32 projects. No new space is planned in the East/Central Las Vegas submarket which is similar to what is projected in the Mesquite market area.

Las Vegas Office Conclusion

The Las Vegas Office market will experience stagnant or declining rental rates and increases in vacancy as the economic conditions resolve. The subject is located in a smaller market which has a smaller buyer and renter pool but also less supply and an overall more stable conditions. Following is a summary of the office areas in Mesquite.

Mesquite Area Office Summary

The subject office area is contained within 3 predominant office parks as well as random commercial locations that contain stand-alone properties. These areas are summarized as follows:

MESA OFFICE PARK

The Mesa Office park is in a retail area across the street from Walmart and close to the hospital. The complex contains 16 single story office buildings and 3 vacant pad sites. These buildings are predominantly dual tenant with a mix of general office, medical and church tenants. There are listings for lease in this complex but the predominant occupancy is by owners with few recent sales.

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COMMERCIAL OFFICE BUILDING LAS VEGAS OFFICE MARKET ANALYSIS

REDD HILLS COMMERCIAL CENTER

The Redd Hills Commercial Center contains 9 buildings, 1 of which is a restaurant tavern, another is a vacant theater and a third is an event center. The remaining buildings are office in nature with a mix of general office, quasi retail, medical/dental and church tenants and include both single story and two story structures. This complex backs up to I-15 but the buildings do not have signage or visibility related to the freeway. We spoke with one property owner in this complex who was able to take advantage of REO/distress conditions and purchase a 25,700 square foot office in 2019 for $45 per square foot. They were moving their expanding business from Henderson but they had just started growing so they were conservative. He reported that he would be willing to pay more for this building today. This same buyer recently bought the 24,600 square foot vacant theater from a lender for $20 per square foot. The buildings at 736 and 786 Pioneer Blvd were included as comparable sales and one lease space was included from this complex.

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COMMERCIAL OFFICE BUILDING LAS VEGAS OFFICE MARKET ANALYSIS

OASIS PROFESSIONAL PARK

The Oasis Professional Park is adjacent to the Oasis Golf Club containing 11 single, dual tenant and one two story office buildings. The tenancy in place consists of general office and medical tenants. There are listings for lease in this complex but the predominant occupancy is by owners with few recent sales.

Lastly, we have considered a few multi-tenant buildings along Mesquite Boulevard that are multitenant- retail buildings with a mix of office, restaurant, salon and other retail uses. The building at 12 West Mesquite Boulevard is across from the City of Mesquite offices with 12 tenants. The building at 190 West Mesquite Boulevard has 10 tenants. Both of these buildings sit perpendicular to the roadway but contain retail uses. The America 1st Office Building at Mesquite Boulevard and Grapevine contains afirst floor bank space and general office space.There are also small stand-alone retail/office buildings along Mesquite Boulevard that offer office space and 2 twostory- office buildings adjacent to Smiths Grocery store on Hillside Drive that contain medical, general and executive office space.

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COMMERCIAL OFFICE BUILDING DEMOGRAPHICS INFORMATION

Demographics Information

Trade Area Analysis

The subject is within Mesquite where the trade area includes the entire city. Due to the rural nature and the I-15 corridor the secondary trade area extends to Bunkerville, Moapa, Beaver Dam and I-15 Commuter Traffic.

Using these observations, we analyzed a primary demographic profile for the subject based on a drive time calculation of 30, 40 and 50 minutes. The 30 and 40 minute drive times are what would be most relevant to the subject. The 50 mile drive time includes areas northeast that are closer to St. George and not within the more reasonable trade area. To add perspective to this analysis, we made a comparison to the state and the United States. This data is presented on the following page.

DEMOGRAPHIC SUMMARY 30-Minute 40-Minute 50-Minute Mesquite State of United Drive Time Drive Time Drive Time CBSA Nevada States POPULATION STATISTICS 2000 11,898 15,024 49,878 9,246 1,998,039 281,422,025 2020 27,557 35,059 98,938 20,246 3,032,828 329,329,799 2025 32,806 43,135 117,557 23,499 3,198,779 341,072,786

Compound Annual Change 2000 - 2020 4.29% 4.33% 3.48% 4.00% 2.11% 0.79% 2020 - 2025 3.55% 4.23% 3.51% 3.02% 1.07% 0.70% HOUSEHOLD STATISTICS 2000 4,312 5,172 17,513 3,456 751,080 105,480,443 2020 11,149 13,338 36,328 8,526 1,133,180 125,121,015 2025 13,371 16,378 43,201 10,005 1,203,313 130,291,609 Compound Annual Change 2000 - 2020 4.86% 4.85% 3.72% 4.62% 2.08% 0.86% 2020 - 2025 3.70% 4.19% 3.53% 3.25% 1.21% 0.81% AVERAGE HOUSEHOLD INCOME 2000 $53,418 $53,940 $50,925 $55,552 $57,528 $56,675 2020 $58,646 $61,052 $71,273 $60,456 $79,051 $87,636 2025 $67,489 $70,332 $81,709 $70,169 $91,009 $99,924 Compound Annual Change 2000 - 2020 0.47% 0.62% 1.70% 0.42% 1.60% 2.20% 2020 - 2025 2.85% 2.87% 2.77% 3.02% 2.86% 2.66% OCCUPANCY Owner Occupied 68.55% 70.16% 68.35% 65.06% 55.23% 63.63% Renter Occupied 31.45% 29.84% 31.65% 34.94% 44.77% 36.37% SOURCE: © 2019 Experian Marketing Solutions, Inc. •All rights reserved Population

Having established the subject’s trade area, our analysis focuses on the trade area's population. Experian Marketing Solutions, Inc., provides historical, current and forecasted population estimates for the total trade area. Patterns of development density and migration are reflected in the current levels of population estimates.

Between 2000 and 2020, Experian Marketing Solutions, Inc., reports that the population within the primary trade area (40-Minute-mile radius) increased at a compound annual rate of 4.33 percent. This trend is expected to continue into the near future albeit at a slightly slower pace. Expanding to the total trade area (50-Minute-mile radius), population is expected to increase 3.51 percent per annum over the next five years.

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COMMERCIAL OFFICE BUILDING DEMOGRAPHICS INFORMATION

Households

A household consists of a person or group of people occupying a single housing unit, and is not necessarily a family unit. When an individual purchases goods and services, these purchases are a reflection of the entire household’s needs and decisions, making the household a critical unit to be considered when reviewing market data and forming conclusions about the trade area as it impacts the retail center.

Figures provided by Experian Marketing Solutions, Inc., indicate that the number of households are increasing at a faster rate than the growth of the population. Several changes in the way households are being formed have caused this acceleration, specifically:

• The population is living longer on average. This results in an increase of single-and two-person households; • Higher divorce rates have resulted in an increase in single-person households; and • Many individuals have postponed marriage, also resulting in more single-person households.

According to Experian Marketing Solutions, Inc., the Primary Trade Area grew at a compound annual rate of 4.85 percent between 2000 and 2020. Consistent with national trends the trade area is experiencing household changes at a rate that varies from population changes. That pace is expected to continue through 2025, and is estimated at 4.19 percent.

Correspondingly, a greater number of smaller households with fewer children generally indicates more disposable income. In 2000, there were 2.91 persons per household in the Primary Trade Area and by 2020, this number is estimated to have decreased to 2.58 persons. Through 2025, the average number of persons per household is forecasted to decline to 2.58 persons.

Trade Area Income

Income levels, either on a per capita, per family or household basis, indicate the economic level of the residents of the trade area and form an important component of this total analysis. Average household income, when combined with the number of households, is a major determinant of an area's retail sales potential.

Trade area income figures for the subject support the profile of a broad middle-income market. According to Experian Marketing Solutions, Inc., average household income in the primary trade area in 2020 was approximately $61,052, 100.99 percent of the CBSA average ($60,456) and 77.23 percent of the state average ($79,051). Further analysis shows a relatively broad-based distribution of income, although skewed toward the middle and lower income brackets similar to the distribution within the larger CBSA. The chart makes it clear that the distribution of higher income level households increases as distance from the subject increases. This information is summarized as follows:

DISTRIBUTION OF HOUSEHOLD INCOME 30-Minute 40-Minute 50-Minute Mesquite State of United Category Drive Time Drive Time Drive Time CBSA Nevada States $150,000 or more 3.35% 3.92% 6.92% 4.11% 9.03% 12.42% $125,000 to $149,999 2.80% 3.22% 3.49% 3.14% 5.05% 5.60% $100,000 to $124,999 5.53% 6.44% 7.45% 5.06% 9.08% 9.21% $75,000 to $99,999 12.09% 13.10% 13.67% 11.05% 13.90% 13.04% $50,000 to $74,999 20.49% 20.33% 20.95% 21.23% 20.22% 17.97% $35,000 to $49,999 17.49% 16.00% 14.84% 17.71% 13.59% 12.41% $25,000 to $34,999 12.92% 12.78% 11.07% 12.33% 9.89% 9.02% $15,000 to $24,999 13.09% 12.24% 11.74% 12.87% 9.23% 9.34% Under $15,000 12.24% 11.96% 9.87% 12.50% 10.00% 10.99% SOURCE: © 2019 Experian Marketing Solutions, Inc. •All rights reserved

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COMMERCIAL OFFICE BUILDING DEMOGRAPHICS INFORMATION

Retail Sales

Perhaps an even more important measure of area income is the amount spent on retail purchases. At the end of last year, the City of Mesquite had an aggregate retail sales level of $0.48 million, with average retail sales per household of $56,098. By comparison, the State of Nevada had average sales per household of $65,603, while the U.S. was $64,434. Experian Marketing Solutions, Inc., projects retail sales in the CBSA will grow at a pace above that of both the State and nation.

CONSUMER EXPENDITURES IN 000s CAGR Area 2020 2025 2020-25 30-Minute Drive Time $638,073 $911,971 7.4% 40-Minute Drive Time $790,550 $1,158,035 7.9% 50-Minute Drive Time $2,195,314 $3,146,043 7.5% Mesquite CBSA $478,290 $669,589 7.0% State of Nevada $74,340,236 $93,200,099 4.6% United States $8,062,018,635 $9,769,404,608 3.9%

Conclusion

We analyzed the trade history and profile of the subject's region and primary trade area in order to make reasonable assumptions regarding the performance of the property. A compilation of this data forms the basis for our projections and forecasts for the subject property. The following are our key conclusions.

• As such we believe the property is speculative and marketability will be depend on the end user. Feasibility is a challenge considering the minimal new demand for owner user office properties and rental rates that could be achieved versus construction costs. Population is expected to grow but up to 30 percent of the population is seasonal or part time and median income levels are lower than Las Vegas. • The subject has adequate accessibility and is in a residential area that supports an office or lower intensity commercial use. Hafen Lane is an east/west commuter route. The site has good visibility and multiple access points with some surplus land. The topography of the site and general elevations in the area are level but drainage improvements are noted. • Based on our analysis we concluded that the subject is well positioned within its market area but that demand is limited which has resulted in longer list times for some property types.

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COMMERCIAL OFFICE BUILDING SITE DESCRIPTION

Property Analysis

Site Description

Shape: Rectangular

Topography: Level at street grade

Primary Land Area: 4.93 acres / 214,751 square feet – Smaller usable area of 4.43 acres / 192,971 square feet when considering an approximate ½ acre area occupied by the Veteran’s Center.

Frontage/Access/Visibility: The subject property has frontage on the following streets:

Hafen Lane: 442 feet Site Improvements: Site improvements include asphalt paved parking areas, curbing, signage, landscaping, outdoor lighting and drainage.

Land Use Restrictions: We were not given a title report to review. We do not know of any easements, encroachments, or restrictions that would adversely affect the site's use. The deed in place that prohibits use for a hospital or associated use does not limit the building from being used for other office or commercial uses and this deed expires in 2024. However, we recommend a title search to determine whether any adverse conditions exist.

Flood Zone Description: The subject property is located in flood zone X (Areas determined to be outside the 500 year flood plain) as indicated by FEMA Map 320030386F, dated December 04, 2007. The flood zone determination and other related data are provided by a third party vendor deemed to be reliable. If further details are required, additional research is required that is beyond the scope of this analysis.

Overall Site Utility: The subject site is functional for an office or other low intensity commercial use.

Location Rating: Good

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COMMERCIAL OFFICE BUILDING SITE DESCRIPTION

FLOOD MAP

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COMMERCIAL OFFICE BUILDING SITE DESCRIPTION

ASSESSOR’S PLAT MAP

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COMMERCIAL OFFICE BUILDING IMPROVEMENTS DESCRIPTION

Improvements Description

GENERAL DESCRIPTION Year Built: 1997

Year Renovated: N/A

Building Construction Class: A

Number of Buildings: 1

Number of Stories: 1

Land To Building Ratio: 12.02:1 based on entire site – 10.80:1 based on estimated smaller usable area.

Net Rentable Area: 17,872 square feet

SUMMARY Condition: Average

Quality: Good

Actual Age: 23 years

Effective Age: 20 years

Expected Economic Life: 45 years

Remaining Economic Life: 25 years

PHYSICAL DETERIORATION Cost to Cure: Curable physical deterioration refers to those items that are economically feasible to cure as of the effective date of the appraisal. One category of physical deterioration is deferred maintenance and is measured as the cost repairing or restoring the item to new or reasonably new condition. We have not been provided with a capital expenditure plan or an engineering report that would identify specific costs required to repair deficiencies at the subject property. During our inspection, we did notice physical deterioration that would require immediate repair. According to the client and a March 2019 building systems review report, the subject has roof leaks and aging/non-functioning HVAC units. The report references overall vacancy related issues with a need for repair or replacement. No cost estimates were provided for any of these repairs. The subject reportedly needs a roof replacement and the client states that the 20 ton HVAC unit over the former surgical areas would need to be replaced. We have estimated a cost of $55,000 for roof, $25,000 for HVAC and $45,000 for other undetermined vacancy related repairs. We have included an extraordinary assumption about these and other costs used in this analysis.

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COMMERCIAL OFFICE BUILDING IMPROVEMENTS DESCRIPTION

FUNCTIONAL OBSOLESCENCE Description: The current buildout is tenant specific and dated. The building has been vacant and the current layout is not considered functional for a second generation user. The precise end user plan will determine the actual costs to remodel, but for the purpose of this assignment, we have deducted demolition and minor interior repair costs to estimate the As Is value.

FLOOR PLAN

EXTERNAL OBSOLESCENCE Description External obsolescence is the adverse effect on value resulting from influences outside the property. External obsolescence may be the result of market softness, proximity to environmental hazards or other undesirable conditions, spikes in construction costs, cost estimates that don’t properly reflect changes in the local market, the lack of an adequate labor force, changing land use patterns, or other factors. Based on a review of the location of the subject as well as local market conditions no external obsolescence is estimated.

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COMMERCIAL OFFICE BUILDING REAL PROPERTY TAXES AND ASSESSMENTS

Real Property Taxes and Assessments

Current Property Taxes

The subject property is located in the taxing jurisdiction of Clark County, and the assessor’s parcel identification is 001-19-501-005. According to the Clark County Treasurer’s office, taxes are current. The assessment and taxes for the property are presented in the following table:

PROPERTY ASSESSMENT INFORMATION Assessor's Parcel Number: 001-19-501-005 Assessing Authority: Clark County Current Tax Year: 2020/2021 Assessment Ratio (% of market Value): 35% Are Taxes Current? Taxes are current Is There a Grievance Underway? Not to our knowledge The Subject's Assessment and Taxes Are: Below market levels

ASSESSMENT INFORMATION Assessed Value Totals Total: $118,006 Total Taxable Value: $337,160 TAX LIABILITY Total Tax Rate: 2.7737% Total Property Taxes: $3,273 Exemption Amount: $3,273 Exemption Type: City Municipal Land and Property Compiled by Cushman & Wakefield of Nevada, Inc. According to personnel at the Assessor’s Office, properties are appraised for taxable value based upon the cost approach. The taxable value of real property is the market value of the land and the current replacement cost of improvements less statutory depreciation. This approach to value is performed by estimating the replacement cost new of a property, less depreciation of 1.5% per year of effective age, up to a maximum of 75%. State Statute 361.227 indicates that the taxable value of the property must not exceed the current market value. Since the cost approach in some instances may provide an indication higher than current market value, the sales comparison approach and/or income capitalization approach may be used to establish the taxable value of the property. Property taxes are based upon an assessed value of 35 percent of the taxable land and building value. The Department of Taxation has announced that the tax cap rate for the 2020/2021 fiscal year is 6.7 percent from the previous year for all properties: residential (owner and non-owner occupied), commercial, land and personal property. A sales transaction does not trigger a new assessments or altered taxes.

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COMMERCIAL OFFICE BUILDING REAL PROPERTY TAXES AND ASSESSMENTS

Tax Comparable Analysis

To determine if the taxes on the property are reasonable, we examined the actual tax burdens of similar properties in the market. They are illustrated in the following table:

REAL ESTATE TAX COMPARABLES

No. Property Address Parcel No. Building Area (SF) Assessment Assess/SF Total Net Taxes Taxes/SF S SUBJECT PROPERTY 001-19-501-005 17,872 $118,006 $6.60 $3,273 $0.18 1 473 W Mesquite Blvd. 001-17-603-052 and 053 15,041 $486,456 $32.34 $11,070 $0.74 2 786 W Pioneer Blvd. 001-17-116-008 and 013 17,400 $409,128 $23.51 $9,074 $0.52 3 340 Falcon Ridge Pkwy. 002-13-510-003 7,838 $245,105 $31.27 $6,648 $0.85 4 736 W Pioneer Blvd. 001-17-116-003 10,856 $340,949 $31.41 $9,185 $0.85 5 754 W Pioneer Blvd. 001-17-116-006 and 014 25,700 $422,623 $16.44 $11,722 $0.46 6 1646 W Pioneer Blvd. 002-23-610-005 26,973 $942,906 $34.96 $26,153 $0.97 STATISTICS Low: 7,838 $245,105 $16.44 $6,648 $0.46 High: 26,973 $942,906 $34.96 $26,153 $0.97 Average: 17,301 $474,528 $28.32 $12,309 $0.73 Compiled by Cushman & Wakefield of Nevada, Inc. Real Property Tax Conclusion

The comparable properties reflect taxes ranging from $0.46 to $0.97 per square foot with an average of $0.73 per square foot.

The comparable properties reflect assessed values ranging from $16.44 to $34.96 per square foot with an average of $28.32 per square foot. The subject is currently assessed below market levels which results in current reported taxes that are also below market. If sold to an entity that is not tax exempt it is possible that when reassessed the assessments and taxes will change.

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COMMERCIAL OFFICE BUILDING ZONING

Zoning

General Information

The property is zoned PB, Professional / Business Office by City of Mesquite. A summary of the subject’s zoning is provided in the following table:

ZONING Municipality Governing Zoning: City of Mesquite Current Zoning: PB, Professional / Business Office Current Use: Vacant Health Clinic with Surgery Center Is Current Use Permitted? Yes Change in Zone Likely: No Permitted Uses: The PB District is intended to allow for office uses in an area which is predominantly residential but because of traffic and other factors is no longer suitable for the continuation of low density residential uses. This district is designed to be a transitional zone to allow low intensity administrative and professional offices. This uses are characterized by a low volume of direct daily client and customer contact. To decrease the impact to the adjacent residential uses, single-family structures should be retained or new development in the PB District should be constructed to maintain a residential character.

ZONING REQUIREMENTS CODE SUBJECT INFORMATION SUBJECT COMPLIANCE Required On-Site Parking: Medical clinics require 1 space per 200 The subject would require 90 spaces. The Complying square feet subject has 96 covered and striped surface spaces. Spaces per 1,000 Square Feet: 5.0 per 1,000

Compiled by Cushman & Wakefield of Nevada, Inc. We analyzed the zoning requirements in relation to the subject property, and considered the compliance of the existing use. We are not experts in the interpretation of complex zoning ordinances but based on our review of public information, the subject property appears to be a complying use. Detailed zoning studies are typically performed by a zoning or land use expert, including attorneys, land use planners, or architects. The depth of our study correlates directly with the scope of this assignment, and it considers all pertinent issues that have been discovered through our due diligence.

The subject has a deed restriction in place that prohibits it from being used as a hospital or other related use that provides either inpatient or out-patient services similar to what the current Mesa View Hospital provides (see below).

This restriction expires in 2024. Based on the current design and location it is not likely that the most probable buyer would want to use the subject for a use prohibited in the deed restriction, so this deed is not considered to be prohibitive.

This appraisal is not intended to be a detailed determination of compliance, as that determination is beyond the scope of this real estate appraisal assignment.

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COMMERCIAL OFFICE BUILDING HIGHEST AND BEST USE

Valuation

Highest and Best Use

Highest and Best Use of Site as though Vacant

We considered the legal issues related to zoning and legal restrictions. We also analyzed the physical characteristics of the site to determine what legal uses would be possible, and considered the financial feasibility of these uses to determine the use that is maximally productive. Considering the subject site’s physical characteristics and location, as well as the state of the local market, it is our opinion that the Highest and Best Use of the subject site as though vacant is for development with an office or commercial use built to its maximum feasible building area, as demands warrants.

Highest and Best Use of Property as Improved

In the reconciliation section, we estimate a market value for the subject property, as improved, of $1,150,000. In our opinion, the improvements contribute significantly to the value of the site. It is likely that no alternative use would result in a higher value.

It is our opinion that the existing building adds value to the site as though vacant, dictating a continuation of its current use but with modifications and repairs to make the interior suitable for a second generation user. It is our opinion that the Highest and Best Use of the subject property as improved is an office building or commercial use with renovations and remodel.

Most Likely Buyer

The subject’s size, type, and configuration make it ideally suited for owner occupancy. Although some other projects within market are leased, most facilities similar to the subject are owner-occupied. An examination of recent sales activity in the area indicates that there is demand for such properties by owner-users within the market. As a result, we conclude that the most likely purchaser of the subject is an owner-user, who would typically rely on the sales comparison approach to value the property.

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COMMERCIAL OFFICE BUILDING SALES COMPARISON APPROACH

Sales Comparison Approach

Methodology

Using the Sales Comparison Approach, we developed an opinion of value by comparing the subject property to similar, recently sold properties and current offerings in the surrounding or competing area. This approach relies on the principle of substitution, which holds that when a property is replaceable in the market, its value tends to be set at the cost of acquiring an equally desirable substitute property, assuming that no costly delay is encountered in making the substitution.

Due to the nature of the subject property and the level of detail available for the comparable data, we elected to analyze the comparables through the application of a traditional adjustment grid using percentage adjustments.

In the Sales Comparison Approach we have derived the value of the subject property with general office buildout that could accommodate a wider variety of users. Although we have considered deferred maintenance items in the condition adjustment we have reserved the estimated demolition and TI costs as a deduction to arrive at the Market Value As-Is.

Analysis of Comparable Data

Property Rights Conveyed

In this instance, no adjustments are necessary.

Conditions of Sale

Based upon the data analyzed, no adjustments are necessary.

Financial Terms

Adjustments are not applicable for this category.

Market Conditions

The comparable data analyzed occurred between March 2017 and August 2020. As the market has improved over this time period, we apply an annual adjustment of 3.00 percent up until March 2020 when the pandemic related conditions resulted in cash flow disruptions.

Location

Sales 2, 5, 6 and 7 are located in Mesquite so no adjustments are necessary for location. Sales 1, 3 and 4 are located in Las Vegas which is a larger market with more sales activity, a broader business base, higher demand and a larger buyer pool. We have done extensive research for sales in Mesquite and chose the sales most similar and relevant to the subject as primary data. We have supplemented this data with sales of properties similar in size and utility but acknowledge that the Las Vegas sales are superior in location. In order to determine a reasonable location adjustment we have isolated two sales in Mesquite and compared them to similar sales in the Las Vegas area during the same time period. Based on a paired data analysis, we have determined that a 35 percent downward adjustment is supported for this property type and has been applied to Sales 1, 3 and 4. This data is summarized as follows:

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Land Price Per Property Address Market Time Sale Date Asking Price Sale Price Building SF Price Per SF Year Built Area SF SF Land 9910 W Cheyenne Ave 8/31/2018 $771,250 7,800 $197.76 2004 28,314 $54.48 1009 Whitney Ranch Dr 121 8/8/2018 $1,395,000 $1,350,000 9,000 $150.00 2001 45,738 $29.52 375 N Stephanie St 7/23/2018 $850,000 5,740 $148.08 2006 23,958 $35.48 4100 N Martin L King Blvd 7/2/2018 $950,000 6,000 $158.33 2007 26,136 $36.35 1840 E Warm Springs Rd 95 6/25/2018 $1,500,000 $1,485,000 7,500 $198.00 2007 6,969 $213.06 2630 S Jones Blvd 64 6/15/2018 $840,000 $840,000 5,060 $166.01 2003 2525 Box Canyon Dr 357 6/11/2018 $2,250,000 $1,985,000 9,200 $215.76 2007 39,204 $50.63 9167 W Flamingo Rd 6/7/2018 $891,000 5,226 $170.49 2005 6,098 $146.11 Average 159 $1,496,250 $1,140,281 6,941 $175.55 2005 25,202 $80.80 Median $168.25 340 Falcon Ridge Pkwy 9/4/2018 $925,000 7,838 $118.01 2005 32,670 $28.31 Location Difference Minimum 20.3% Maximum 45.3% Average 32.8% Median 29.9%

Market Actual Cap Price Per Land Property Address Sale Condition Sale Date Asking Price Sale Price Building SF Price Per SF Year Built Time Rate SF Land Area SF 9910 W Cheyenne Ave 1031 Exchange 8/17/2017 $1,527,549 7,800 $195.84 2004 $53.95 28,314 3441 S Eastern Ave 8/9/2017 $3,000,000 19,548 $153.47 2001 $99.81 30,056 6276 S Rainbow Blvd 176 1031 Exchange 8/3/2017 $1,999,000 $1,718,665 11,250 $152.77 2006 10789 W Twain Ave Purchase By Tenant 7/12/2017 $3,211,510 $3,211,510 13,666 $235.00 2006 $61.44 52,272 5765 S Rainbow Blvd 106 1031 Exchange 6/2/2017 $2,975,000 $2,750,000 16,668 $164.99 7.56% 2002 $56.88 48,351 821 N Nellis Blvd 199 5/5/2017 $2,500,000 $2,300,000 10,541 $218.20 2001 $50.29 45,738 3140 S Durango Dr 3/28/2017 $1,900,000 15,738 $120.73 8.00% 2002 $101.44 18,730 5230 Patrick Ln 369 2/1/2017 $3,650,000 $3,500,000 18,331 $190.93 2006 $84.58 41,382 Average 213 $2,867,102 $2,488,466 14,193 $178.99 7.78% 2004 $72.63 37,835 Median $177.96 736 W Pioneer Blvd 238 3/9/2017 $1,395,000 $1,200,000 10,856 $110.54 7.00% 2006 $40.51 29,620 Location Difference Minimum 8.4% Maximum 53.0% Average 38.2% Median 37.9% Physical Traits

We have considered the difference in physical traits for size, age, type of tenant improvements and property condition as follows:

• Sales 4, 6 and 7 are smaller in size and have been adjusted downward for this factor. Sale 3 is larger and has been adjusted upward for size.

• The subject was constructed in 1997 with an actual age of 23 years and an estimated effective age of 20 years. This results in a depreciation factor of 44 percent. Sales 1, 2 and 4 are the most similar in age and condition, so no adjustment is warranted for these sales. Sales 3, 5, 6 and 7 are superior in age and condition so we have estimated adjustments as follows:

Subject Sale 3 Sale 5 Sale 6 Sale 7 Actual Age 23 19 14 15 14 Effective Age 20 15 14 15 14 Economic Life 45 45 45 45 45 Remaining Economic Life 25 30 31 30 31 Depreciation 44% 33% 31% 33% 31%

Difference 11% 13% 11% 13%

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• The subject has medical and surgical buildout but the current floor plan is considered to be marginally functional for a second generation user. It is unclear precisely what a new user would keep and what they would demolish but we have estimated that in addition to costs to cure deferred maintenance, a buyer would incur costs for partial demolition and returning the space to more general office plan with more open spaces.  Sale 1 is a similar exiting medical/surgical space that was purchased by an investor who intends to modify the interior to accommodate a new user. Therefore, no adjustment is necessary for this sale.  Sale 2 is a former market that has been vacant. It has open box retail space and is inferior to the subject property. TI costs for a box retail space are reasonable at $30 per square foot as compared with general office space at $50 per square foot. Considering some depreciation we have considered a $10 per square foot adjustment which results in a reasonable upward adjustment of 10 percent for quality.  Sales 3, 4, 5, 6 and 7 are general office properties so no adjustment is warranted for these sales. • The subject has been vacant and is in need of repairs to the roof and one 20 ton HVAC unit. We were not provided with a cost estimate but based on Marshall Valuation Service costs and comparable data, we have estimated that the roof replacement would cost $55,000 and a 20 ton HVAC unit would cost $25,000. In addition, we have considered a minor clean up and repair cost of $2.50 per square foot for other undetermined repairs related to prolonged vacancy. This results in an additional cost of $45,000 or a combined cost of $125,000 and $7.00 per square foot. This translates to a full downward adjustment of 10 percent.  Sale 1 will also need HVAC replacement and interior clean up but does not require a roof repair. Therefore, we have applied a downward adjustment of 5 percent to Sale 1. Sale 2 has been vacant but no information is available regarding deferred maintenance. Based on the age and vacancy of Sale 2 no condition adjustment is considered necessary for this sale. We have applied a 10 percent downward adjustment to the remaining sales for condition. LTB Ratio

The subject has surplus land that could result in additional parking or building expansion. This area is predominantly behind the building or on the west side. It is vacant and has visible drainage improvements but some premium is warranted for the overall site flexibility. If a typical LTB ratio of 4.50:1 is considered the subject would require 80,424 square feet. This suggests that the subject has 112,547 square feet of surplus land area. Land suitable for office use in the subject area would have a value of $2.00 per square foot but surplus land is less functional. Applying a lower value of $1.00 per square foot to the surplus land area suggests a value of $113,000 or $6.32 per square foot of building area. This equates to a reasonable upward adjustment factor of 4 percent for Sales 1, 3, 5 and 6. Sale 2 will be adjusted upward 2 percent, Sale 4 upward 5 percent and Sale 7 upward 6 percent for land to building ratio.

Utility

The subject is located on a secondary roadway with office zoning. Sales 1, 3 and 5 are located on secondary roads or interior sites with similar utility. Sale 2 is a commercial zoned site with frontage on a commercial roadway. Sales 4, 6 and 7 are office uses but have frontage and visibility on roadways with higher traffic patterns than the subject and are superior in utility. The premium associated with this factor is reasonable at 10 percent based on our review of rental rate differences in multi building parks between buildings with and without frontage. Sales 2, 4, 6 and 7 are adjusted downward 10 percent for utility.

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Economics

The subject will be vacant but is being analyzed as a fee simple property. The most probable buyer is concluded to be an owner user which is supported by the current proposed use if the property swap takes place. An owner user does not incur costs associated with lease up. Sales 1 and 2 were vacant at the time of purchase. Even though Sale 1 was bought by an investor for potential lease up it was available to an owner user and represents the same fee simple property rights. Sales 3 and 7 were 100 percent occupied. Sale 4 was 50 percent occupied with the buyer to occupy the vacant space. No adjustments are considered necessary for these sales.

Sales 5 and 6 were not stabilized at the time of sale. No information was available for Sale 5 but this property currently has 12,317 square feet listed for lease suggesting an occupancy of 30 percent. We have adjusted Sale 5 upward 25 percent for lease up costs related to rent loss, landlord TI costs and leasing commissions. Sale 6 had 75 percent occupancy so a lower upward adjustment of 10 percent is applied to this sale.

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SUMMARY OF IMPROVED SALES PROPERTY INFORMATION TRANSACTION INFORMATION

Property Name Building Year Tenancy Sale No. Address, City, State Land (SF) NRA Built LTB Ratio Class Type Quality Cond. Date Sale Price $/SF NOI/SF OAR Occup. Comments S Subject Property 214,751 17,872 1997 10.80 B Single- Good Fair The subject is currently occupied in 2,000 sf by a tenant who will vacate if Tenant sold. The VA center occupies approximately one have acre so the subject has a primary usable area of 4.43 acres or a LTB ratio of 10.80:1.

1 Medical 66,211 15,041 1985 4.40 B Single- Good Fair 8/20 $1,800,000 $119.67 -- 0% This property is located on the west side of Lindell Road, south of Sahara 2575 South Lindell Road Tenant Avenue. The property was built out for medical office and surgical center Las Vegas, NV but has been vacant for several years. The property has deferred maintenance and is in need of HVAC units and remodel. The buyer plans to demolish interior and potentially ready the building for lease to a medical/surgical user. Demolition is estimated at $5/sf, HVAC usually costs $1,100/ton and roof repair would be reasonable at $3/sf.

2 Retail - Freestanding 117,176 16,748 1984 7.00 C Single- Fair Fair 7/20 $1,300,000 $77.62 -- 0% This property is located on the north side of Mesquite Boulevard, east of 473 West Mesquite Boulevard Tenant Grapevine Road. This building was vacant at the time of sale and has been Mesquite, NV for over a decade but was formerly used as a market with open box retail space. The buyer intends to keep the property for his own personal use; speculated to be a garage for personal vehicle storage.

3 Whitney Mesa Office Plaza 113,692 25,245 2001 4.50 B Single- Good Good 9/19 $3,725,000 $147.55 $12.35 8.37% 100% This property is located on the interior, north side of Whitney Mesa Drive, 1711 Whitney Mesa Drive Tenant east of Mountain Vista Street. The subject was a former charter school and Henderson, NV office property but was purchased by an office user that now facilitates charter schools. 4 Office Building 35,719 10,400 1992 3.43 B Dual Tenant Good Good 9/19 $1,577,000 $151.63 -- 50% This property is located on the east side of Rainbow Boulevard, south of 2972 South Rainbow Boulevard Edna Avenue. The property was 50% leased to a retail/showroom tenant at Las Vegas, NV a rate of $14.63/sf and a lease expiration in March 2022. The buyer will renovate the vacant space at an unknown cost and occupy.

5 Office Building 73,181 17,400 2006 4.21 B Multi-Tenant Good Good 5/19 $820,000 $47.13 -- N/Av This property is located on the south side of Pioneer Boulevard, west of 786 West Pioneer Boulevard Grapevine Road. The building was reportedly 100% occupied at the time of Mesquite, NV sale but details could not be confirmed. This building is currently listed for lease with 3 spaces totaling 12,317 square feet and an asking rate of $9.00/sf/NNN. 6 Office Building 32,670 7,838 2005 4.17 B Multi-Tenant Good Good 9/18 $925,000 $118.01 $9.74 8.25% 75% This is a multi-tenant medical office building that was 75 percent leased at 340 Falcon Ridge Parkway the time of sale. The broker involved in this transaction indicated that the Mesquite, NV 8.25 percent cap rate was based on actual leases in place. Most of the leases were short-term; however, the existing tenants indicated that they would renew under the new ownership. This building has visibility on Falcon Ridge Parkway. 7 Multi Tenant Office Building 29,621 10,856 2006 2.73 B Multi-Tenant Good Good 3/17 $1,200,000 $110.54 $7.74 7.00% 100% The property was listed in the open market for approximately eight months 736 West Pioneer Boulevard at $1,395,000 and it sold at 86 percent of its asking price. At the time of Mesquite, NV sale, the property was 100 percent leased to three tenants. The reported cap rate was 7.00 percent based in part on the seller receiving a lower range rental rate. The buyer is the selling broker.

STATISTICS Low 29,621 7,838 1984 3 3/17 $820,000 $47.13 $7.74 7.00% 0% High 117,176 25,245 2006 7 8/20 $3,725,000 $151.63 $12.35 8.37% 100% Average 66,896 14,790 1997 4 5/19 $1,621,000 $110.31 $9.94 7.87% 54% Compiled by Cushman & Wakefield of Nevada, Inc.

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IMPROVED SALE ADJUSTMENT GRID ECONOMIC ADJUSTMENTS (CUMULATIVE) PROPERTY CHARACTERISTIC ADJUSTMENTS (ADDITIVE) Property Adj. Price PSF & Rights Conditions Market (1) LTB Price No. Date Conveyed of Sale Financing Conditions Subtotal Location Size Age Interior TI Condition Ratio Utility (2) Economics PSF Overall 1 $119.67 Fee Simple Arm's-Length None Similar $119.67 Superior Similar Similar Similar Superior Inferior Similar Similar $76.59 Superior 8/20 0.0% 0.0% 0.0% 0.0% 0.0% -35.0% 0.0% 0.0% 0.0% -5.0% 4.0% 0.0% 0.0% -36.0% 2 $77.62 Fee Simple Arm's-Length None Similar $77.62 Similar Similar Similar Inferior Similar Inferior Superior Similar $79.17 Inferior 7/20 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 10.0% 0.0% 2.0% -10.0% 0.0% 2.0% 3 $147.55 Leased Fee Arm's-Length None Inferior $149.47 Superior Larger Superior Similar Superior Inferior Similar Similar $86.69 Superior 9/19 0.0% 0.0% 0.0% 1.3% 1.3% -35.0% 10.0% -11.0% 0.0% -10.0% 4.0% 0.0% 0.0% -42.0% 4 $151.63 Fee Simple Arm's-Length None Inferior $153.74 Superior Smaller Similar Similar Superior Inferior Superior Similar $69.18 Superior 9/19 0.0% 0.0% 0.0% 1.4% 1.4% -35.0% -5.0% 0.0% 0.0% -10.0% 5.0% -10.0% 0.0% -55.0% 5 $47.13 Leased Fee Arm's-Length None Inferior $48.22 Similar Similar Superior Similar Superior Inferior Similar Inferior $51.12 Inferior 5/19 0.0% 0.0% 0.0% 2.3% 2.3% 0.0% 0.0% -13.0% 0.0% -10.0% 4.0% 0.0% 25.0% 6.0% 6 $118.01 Leased Fee Arm's-Length None Inferior $123.33 Similar Smaller Superior Similar Superior Inferior Superior Inferior $90.03 Superior 9/18 0.0% 0.0% 0.0% 4.5% 4.5% 0.0% -10.0% -11.0% 0.0% -10.0% 4.0% -10.0% 10.0% -27.0% 7 $110.54 Leased Fee Arm's-Length None Inferior $120.72 Similar Smaller Superior Similar Superior Superior Superior Similar $82.09 Superior 3/17 0.0% 0.0% 0.0% 9.2% 9.2% 0.0% -5.0% -13.0% 0.0% -10.0% 6.0% -10.0% 0.0% -32.0%

STATISTICS $47.13 - Low Low - $51.12 -55.00% $151.63 - High High - $90.03 6.00% $110.31 - Average Average - $76.41 -26.29% Compiled by Cushman & Wakefield of Nevada, Inc. (1) Market Conditions Adjustment (2) Utility Footnote See Variable Growth Rate Assumptions Table Utility includes zoning, visibility and frontage Date of Value (for adjustment calculations): 8/25/20

Variable Growth Rate Assumptions Inflection Point 1 (IP1): 1/1/2017 Change After IP1: 3.0% Inflection Point 2 (IP2): 3/1/2020 Change After IP2: 0.0%

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IMPROVED SALE LOCATION MAP

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Conclusion

As shown in the grid that follows, adjustments are applied to the comparable sales to reflect what we believe is appropriate in the marketplace. Adjustments were made subjectively and quantitatively derived with paired sales and other empirical data.

Despite the subjectivity, the adjustments are considered reasonable and are applied consistently. The resulting adjusted value range is from $51.12 to $90.03 per square foot with an average adjusted price of $76.41 per square foot. We placed greatest reliance on Sales 2, 6 and 7 which are located in Mesquite. We have also considered Sale 1 which is a similar vacant building that will be remodeled but with less deferred maintenance. Based on this, we have estimated a preliminary value of $85.00 per square foot for a functional general office space. However, in order to render the interior marketable for a second generation user, we have included a partial demolition cost, based on Marshall Valuation Service and our review of comparable costs, of $3.00 per square foot or $53,616. In addition, we have included a TI cost of $15 per square foot or $268,080 to bring the interior to a more general office space condition with a lobby, restrooms and mostly open space. This results in a total cost to make the subject functional for a wider variety of potential users at $321,696. Adding 10 percent for profit results in a deduction of $353,866 to arrive at a Market Value As Is.

Therefore, we conclude at the following Market Value As Is:

APPLICATION TO SUBJECT Market Value As-Is Indicated Value per Square Foot NRA $85.00 Net Rentable Area in Square Feet x 17,872 Indicated Value $1,519,120 LESS Demolition, TI Cost & Profit ($353,866) Adjusted Value $1,165,254 Rounded to nearest $10,000 $1,165,000 Per Square Foot $65.19 Compiled by Cushman & Wakefield of Nevada, Inc.

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Income Capitalization Approach

Methodology

The Income Capitalization Approach determines the value of a property based on the anticipated economic benefits. The principle of “anticipation” is essential to this approach, which recognizes the relationship between an asset’s potential future income and its value. To value the anticipated economic benefits of a property, potential income and expenses must be projected, and the most appropriate capitalization method must be selected.

The most common methods of converting net income into value are Direct Capitalization and Yield Capitalization. In direct capitalization, net operating income is divided by an overall capitalization rate to indicate an opinion of market value. In the yield capitalization method, anticipated future cash flows and a reversionary value are discounted to an opinion of net present value at a chosen yield rate (internal rate of return).

Investors acquiring this type of asset will typically look at year one returns but must also consider long-term strategies. Hence, depending on certain factors, each of the income approach methods has merit. We placed sole reliance on the Direct Capitalization Method since the property is at stabilized operations and the overall rate used is derived from recent market transactions and then compared to current survey data. It is likely that a prospective purchaser of this type of property would utilize Direct Capitalization as the primary tool in evaluating the property.

Subject Tenancy

The subject property is currently leased to a medical tenant in 2,000 square feet whose lease expires in 2021 and can terminate with a 30 day notice. The current rental rate is $7.56 per square foot plus a $2.40 per square foot CAM. The property representative states that when they lease space the rate is generally below market.

We have researched the Mesquite market for lease data and considered rental rates from Las Vegas for similar properties. These are summarized as follows:

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Analysis of Comparable Office Rents

The following table summarizes rental activity for comparable space in similar properties in the market.

OFFICE RENT COMPARABLES PROPERTY INFORMATION LEASE INFORMATION

Property Name NO. Address, City, State COMMENTS SIZE (NRA) YEAR BUILT STORIES PARKING / 1,000 SF TENANT NAME LEASE DATE SIZE (NRA) TERM (yrs.) INITIAL RENT/SF RENT STEPS TYPE LEASE MONTHS FREE TI/SF S Subject Property 17,872 1997 1 5.37 The SNHD is leasing 2,000 sf for $7.56/sf plus $2.40/sf in CAMs.

1 Multi Tenant Office Building 8,400 2006 1 3.81 Local Office 12/19 5,891 0.0 $14.40 - Net 0 $0.00 This is an orthodontist space in a dual tenant building. The owner occupies 760 West Pioneer Boulevard Tenant the other space doing business as a dentist. Mesquite, NV 2 Office Building 28,748 2004 2 6.26 FirstService 10/19 28,748 5.0 $14.40 3% annually Net 0 $0.00 This is the renewal of a lease which will begin in May of 2020. The parcel 8290 Arville Street Residential on which the subject is located is larger (5.09 acres), but the eastern Las Vegas, NV portion (approximately 2.37 acres) is leased to a separate entity. The building broker did not have details on the yard lease.

3 Flamingo Professional Center 113,694 1985 2 3.75 State of 4/19 19,836 5.0 $17.51 3% annually Gross 0 $0.00 This property is one of a two-building campus with a parking garage. The 2080 East Flamingo Road Nevada two buildings within this center have several government tenants within Las Vegas, NV Department of them, with this being the most recent and largest lease. 4 Freestanding Retail 12,911 1977 1 4.49 Local Tenant 4/19 12,911 5.0 $10.20 2% annually Net 3 $5.00 This property is located on the east side of Eastern Avenue, north of 4840 South Eastern Avenue Tropicana Avenue. The space is box retail in a multi tenant retail property. Las Vegas, NV

5 Whitney Mesa Office Plaza 25,248 2001 1 2.85 WestCare 3/19 25,248 3.0 $12.35 $0.05 per Net 0 $0.00 This property is located on the north side of Whitney Mesa Drive, east of 1711 Whitney Mesa Drive Foundation, square foot Mountain Vista Street. This is a 3 year renewal. The lease began in 2013 Henderson, NV Inc. annually and was a former multi tenant space with a former charter school and alot of open space. The tenant spent $250K to improved for general office.

6 General Office 25,700 2007 2 5.60 Local Office 9/18 2,800 5.0 $12.00 - Net 0 $0.00 This space is general office within a multi tenant office building. The owner 754 West Pioneer Boulevard Tenant does their own leasing. The building is occupied by the owner and 3 other Mesquite, NV tenant spaces with 2 spaces available. The landlord bought this building in an REO sale in 2019 with high vacancy. Rental rates for the existing tenants when bought were $15/sf/MG.

7 Single Tenant Office Building 18,962 2002 2 3.59 Local Office 9/18 18,962 7.0 $15.72 2% annually Net 0 $0.00 This property is located on the west side of Jones Boulevard, north Palmyra 3065 South Jones Boulevard Tenant Avenue. This tenant expanded into the entire building September, 2018. Las Vegas, NV The tenant has 3 (5) year options to renew.

STATISTICS Low 8,400 1977 1 2.85 9/18 2,800 0.0 $10.20 0 $0.00 High 113,694 2007 2 6.26 12/19 28,748 7.0 $17.51 3 $5.00 Average 33,380 1997 2 4.34 3/19 16,342 4.3 $13.80 0 $0.71 Compiled by Cushman & Wakefield of Nevada, Inc.

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COMPARABLE RENT ADJUSTMENT GRID

Comp No. 1 2 3 4 5 6 7 Lease Date 12/19 10/19 4/19 4/19 3/19 9/18 9/18 Rent per SF $14.40 $14.40 $17.51 $10.20 $12.35 $12.00 $15.72 ECONOMIC ADJUSTMENTS (CUMULATIVE) Lease Type Net $0.00 Net $0.00 Gross -$6.00 Net $0.00 Net $0.00 Net $0.00 Net $0.00 Rent (2) Concess. Similar $0.00 Similar $0.00 Similar $0.00 Superior -$1.51 Similar $0.00 Similar $0.00 Similar $0.00 Effect. Rent $14.40 $14.40 $11.51 $8.69 $12.35 $12.00 $15.72 Market (1) Conditions Inferior 0.7% Inferior 1.2% Inferior 2.8% Inferior 2.8% Inferior 3.0% Inferior 4.5% Inferior 4.5% NetEquiv. Rent $14.40 $14.40 $11.51 $10.20 $12.35 $12.00 $15.72 Subtotal 0.7% $14.51 1.2% $14.58 -32.5% $11.83 -12.5% $8.93 3.0% $12.72 4.5% $12.54 4.5% $16.43 PROPERTY CHARACTERISTICS ADDITIVE Location Superior -10.0% Superior -35.0% Superior -35.0% Superior -35.0% Superior -35.0% Similar 0.0% Superior -35.0% Size Smaller -10.0% Larger 10.0% Similar 0.0% Similar 0.0% Larger 10.0% Smaller -20.0% Similar 0.0% Age Superior -11.0% Superior -11.0% Similar 0.0% Similar 0.0% Superior -11.0% Superior -11.0% Superior -11.0% Quality / Condition Superior -20.0% Similar 0.0% Similar 0.0% Similar 0.0% Similar 0.0% Similar 0.0% Similar 0.0% Parking Similar 0.0% Similar 0.0% Similar 0.0% Similar 0.0% Similar 0.0% Similar 0.0% Similar 0.0% Overall Superior -51.0% Superior -36.0% Superior -35.0% Superior -35.0% Superior -36.0% Superior -31.0% Superior -46.0% Adj. Rent PSF $7.11 $9.33 $7.69 $5.80 $8.14 $8.66 $8.87 UNADJUSTED STATISTICS Low - $10.20 High - $17.51 Average - $12.07 ADJUSTED STATISTICS Low - $5.80 High - $9.33 Average - $6.95 Compiled by Cushman & Wakefield of Nevada, Inc. (1) Market Conditions Adjustment (2) Market Standard See Variable Growth Rate Assumptions Table Free Rent (months) 0 months Date of Lease (for adjustment calculations): 8/25/20 Tenant Improvement (SF) $0.00 Lease Type Net

Variable Growth Rate Assumptions Inflection Point 1 (IP1): 1/1/2017 Change After IP1: 3.0% Inflection Point 2 (IP2): 3/1/2020 Change After IP2: 0.0%

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COMPARABLE RENTAL LOCATION MAP

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Adjustment Process

The comparable rents that we utilized represent the best available information that could be compared to the subject property. The major elements of comparison for an analysis of this type include a lease type equivalency adjustment, rent concession adjustment, changes in market conditions since the lease date, the location of the real estate, its physical traits and the economic characteristics of the property.

We made a downward adjustment to those comparables considered superior to the subject. Conversely, an upward adjustment was made to those comparables considered to be inferior.

Lease Type Equivalency Adjustment The initial face rent of a lease will be impacted significantly by the lease reimbursement clause regarding expense reimbursement. We projected that the subject’s space would have a triple net lease structure. Rental 3 was adjusted downward for the gross lease structure. The remaining leases are similar triple net terms.

Rent Concession Adjustment No recent concessions are applicable.

Market Conditions The comparables included in this analysis range between the dates of September 2018 and December 2019. As the market has improved over this time period, we applied an annual adjustment of 3.00 percent up until March, 2020.

Location Rentals 2, 3, 4, 5 and 7 are adjusted downward for their Las Vegas location. Rental 1 is located along a commercial roadway with superior visibility and traffic patterns and has been adjusted downward for this factor.

Physical Traits Each property is affected by the various physical traits that come to bear on the appeal of a property. These traits include size, age, condition, quality, and parking.

• Rentals 1 and 6 are adjusted downward for size. Rentals 2 and 5 are adjusted upward for size.

• Rentals 1, 2, 5, 6 and 7 are adjusted downward for age.

• Rental 1 is a dental space and is adjusted downward for quality.

We also searched the market for listings and found the following:

• 786 W Pioneer Blvd. – 7,235 sf - $9.00/sf/NNN

• 840 Pinnacle Ct. – 3,000 sf - $11.40/sf/NNN

• 754 W Pioneer Blvd. – 10,000 sf - $12.00/sf/MG plus utilities

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Conclusion of Market Rent

The rent for the SNHD space is $7.56 per square foot annually but is a year to year lease and according to the client is below market. Based on the subject size and parking, we have estimated a market rent as follows:

MARKET RENT SYNOPSIS TENANT CATEGORY Market Rent $7.80 Annual Base Rent $139,402 Lease Term (Years) 5 Lease Type (Reimbursements) NNN Contract Rent Increase Projection 3% annually Compiled by Cushman & Wakefield of Nevada, Inc. Vacancy and Collection Loss

Vacancy and collection loss is a function of the interrelationship between absorption, lease expiration, renewal probability, estimated downtime between leases, and a collection loss factor based on the relative stability and credit of the subject’s tenant base. Single tenant properties like the subject are either 100 percent occupied or 100 percent vacant. However, based on the location and the lease term, we have included a 10 percent vacancy and collection loss factor.

Revenue & Expense Analysis

The subject has been vacant and the current owner is exempt from taxes therefore, there is no historical data available that is relevant to this analysis. We developed an opinion of the property’s annual income and operating expenses after reviewing the operating performance of similar buildings. We analyzed each item of expense and developed an opinion regarding what an informed investor would consider typical. We have considered operating expenses (excluding taxes) from similar projects in Las Vegas that indicate a range from $2.51 to $3.96 per square foot.

COMPARABLES REVENUE AND EXPENSE ANALYSIS Property City Las Vegas Las Vegas Las Vegas Las Vegas Las Vegas Las Vegas Henderson Year Built 2005 1982 2002 2016 2009 2007 2018 Year of Record 2020 2018 2018 2018 2018 2020 2019 Actual/Budget/Annualized Proforma Actual Actual Actual Actual Budget Actual

Comp 1 Comp 2 Comp 3 Comp 4 Comp 5 Comp 6 Comp 7 Min Max Average REV ENUE PSF PSF PSF PSF PSF PSF PSF PSF PSF PSF OPERAT ING EXPENSES Insurance $0.25 $0.16 $0.31 $0.18 $0.32 $0.85 $0.25 $0.16 $0.85 $0.33 Utilities $0.30 $0.97 $1.82 $1.46 $0.00 $1.20 $0.62 $0.00 $1.82 $0.91 Repairs & Maintenance $1.60 $1.20 $1.02 $1.28 $1.94 $0.75 $1.36 $0.75 $1.94 $1.31 Janitorial $0.00 $0.00 $0.63 $0.31 $0.00 $0.00 $0.48 $0.00 $0.63 $0.20 Management Fees $0.64 $0.46 $0.18 $0.50 $0.25 $0.58 $0.96 $0.18 $0.96 $0.51 Other Expenses $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Total Operating Expenses $2.79 $2.79 $3.96 $3.73 $2.51 $3.38 $3.67 $2.51 $3.96 $3.26 Compiled by Cushman & Wakefield of Nevada, Inc. Based on this, we have included reimbursable common area expenses of $2.75 per square foot annually. We have also included a reserve expense of $0.15 per square foot. We have estimated a tax expense based on the comparable data presented earlier at $0.75 per square foot

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Income and Expense Pro Forma

The following chart summarizes our opinion of income and expenses for year one, which is the first stabilized year in this analysis.

SUMMARY OF REVENUE AND EXPENSES Stabilized Year For Direct Capitalization: Year One REVENUE Assumptions Annual $/SF % of EGI Base Rental Revenue $7.80 $139,402 $7.80 Expense Reimbursement $62,552 $3.50 POTENTIAL GROSS REVENUE $201,954 $11.30 Vacancy and Collection Loss 10.0% ($20,195) ($1.13) EFFECTIVE GROSS REVENUE $181,759 $10.17 100.00% OPERATING EXPENSES 0 Reimbursable Common Area Expenses $49,148 $2.75 27.04% Non-Reimbursable Expense $2,681 $0.15 1.48% Total Operating Expenses $51,829 $2.90 28.52% Real Estate Taxes $13,404 $0.75 7.37% TOTAL EXPENSES $65,233 $3.65 35.89% NET OPERATING INCOME $116,526 $6.52 64.11% Compiled by Cushman & Wakefield of Nevada, Inc. Investment Considerations

Before determining the appropriate risk rate(s) to apply to the subject, a review of recent market conditions, particularly in the financial markets, is warranted. The following subsection(s) provide a review of these trends, ending with a summary of the investment considerations impacting the subject property, based upon the appraiser’s market research, discussions with participants in the market, and the relative position of the subject property within its market.

Overview

Prior to the current market disruption brought on by the COVID-19 pandemic, the U.S. economy had officially begun its eleventh consecutive year of growth in the second half of 2019; a new record for the longest economic expansion in history. Economic growth beat market expectations during the fourth quarter of 2019, and the unemployment rate hit a 50-year low at 3.5%. In March 2020, circumstances changed drastically with the rapid spread of COVID- 19 that caused people around the globe to start quarantining and practicing social distancing. This led to many businesses closing, either temporarily or permanently, and has pushed the U.S. economy, as well as most other economies around the world, into a deep recession.

After contracting at a 5% annual rate in the first quarter of 2020, The U.S. GDP collapsed in the second quarter, dropping at a 32.9% annual rate; the largest decline since fourth quarter 2008. Before this, the low mark came in the first quarter of 1958 when GDP dropped 10%. The National Bureau of Economic Research has identified February 2020 as a peak month in the economic cycle, and March as the beginning of a recession. Payroll employment fell from a peak of 152.5 million in February to 130.3 million as the economy lost 22.2 million jobs in a short two-month period, nearly wiping out all the jobs created in the previous 10 years. Job loss was concentrated in the leisure and hospitality sector as governments sought to limit activities that would contribute to the spread of the virus. Jobs in restaurants, bars, and retail stores saw the bulk of the job losses as this sector accounts for 11% of all U.S. jobs, but accounted for roughly 37% of the job losses in March and April.

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This rapid contraction of the economy was followed by a sharp rebound. In May and June, U.S. payroll employment increased by a total of 7.5 million jobs. While this is only about a third of the jobs that were lost, it does suggest that the worst of the decline is over, and that the economy is in growth mode again. A massive fiscal and monetary stimulus helped businesses retain workers and hire them back very quickly. With that said, for the recovery to be sustained, the virus needs to be controlled. The sharp increase in new cases across the U.S. in June and July have had a dampening effect on both consumer and business confidence and have likely slowed the pace of recovery. Thus, after a short sharp surge, the economy appears to have slowed once again.

The speed of the recovery will depend largely on business and consumer confidence, as well as businesses being allowed to re-open. If businesses and households are confident that they can engage in normal activities without facing a threat of infection, growth will accelerate, but if concerns about infection remain elevated, it will take longer for the economy to fully recover.

Further considerations include:

• Consumer Confidence decreased in July after rising in June, as the percentage of consumers expecting business conditions to improve over the next six months declined to 31.6%. The index now stands at 92.6, down from 98.3 in June 2020. The U.S. Consumer Confidence board attributes better short-term expectations from consumers as the gradual reopening of the economy helped improve consumers’ spirits. • U.S. retail sales jumped by a record 17.7% from April to May, with spending partially rebounding after the coronavirus had shut down businesses, flattened the economy and paralyzed consumers during the previous two months. In June 2020, U.S. retail sales rose 7.5% as states began reopening for business. Retail sales totaled $524.3 billion in June, nearly back to pre-pandemic levels. • All major U.S. Indices increased during second quarter 2020, with the S&P 500 rising by 20%, the Dow Jones Industrial jumped by 17.5% and the NASDAQ increasing by 30.6%. This was the best quarter for all indices over the last 20 years due, in part, to the $1.6 trillion stimulus package. From May and into June, stocks rallied, sparked by states re-opening in various phases, support from the Feds, and reported progress on a COVID-19 vaccine. • U.S. commercial real estate investment activity was generally down during 2019, as transaction volume sat 2% below 2018’s year-end total. Halfway through 2020, transaction volume was down 7% in a year-over-year comparison, ending the quarter with $165 billion in activity, according to Real Capital Analytics (RCA). In second quarter 2020, transaction volume totaled approximately $44.7 billion, falling by 68% in a year-over-year comparison. Entering 2020 on a stable, if not strong economic footing, the novel coronavirus has clearly had a severe impact on the economy. Keeping in mind that a majority of the information in this report contains the latest concrete data available (typically as of fourth quarter 2019), events have been changing rapidly, and the latest statistical information available has been provided, as available. Some further thoughts on recent events:

• The COVID-19 pandemic resulted in significant disruptions to non-essential businesses. This resulted in a sharp unemployment spike that is expected to negatively impact most businesses in the near term. • The commercial real estate sector is not the stock market. It is slower moving and leasing fundamentals do not swing wildly from day to day. While the economy is reopening, it is still struggling to gain its footing, and this will have feed-through impacts on real property. • The outbreak has also prompted a flight to quality, driving investors into bond markets, where lower rates are creating more attractive debt/refinance options.

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• Right now, most economists are expecting conditions to improve as the economy continues to reopen; however, concerns about a second wave in the fall linger. Economic Conditions

Leading up to the current economic turbulence, the current U.S. economic expansion cycle was over a decade old and was, by general consent, a strong economy and getting stronger. Despite this, interest rates, which help determine the cost of borrowing money for investments, had lingered near historic lows since the 2008 recession. Interest rates went unchanged through December 2015, when the Federal Reserve increased the rate for the first time in almost a decade. Following more tariffs being implemented on trade and inventories, the Federal Reserve Chairman Jerome Powell had shown an openness to cutting rates based on how the economy responded to the new trade deals made during the past year. In turn, the Federal Reserve reduced interest rates for a third time in 2019 to combat the trade war and boost the economy. The benchmark interest rate was reduced to a range of 1.5% to 1.75%. As of fourth quarter, the central bank did not see a recession coming in the near-term and the reduced rate looked to offer additional protection from global slowdown and uncertainty. The Federal Reserve spent much of 2019 providing the American economy with insurance through interest rate cuts.

In addition, the U.S.-China trade war appears to have come to halt, as the two sides reached agreement on a deal that will see the U.S. reduce tariffs on $120 billion in Chinese products from 15% to 7.5%. China has agreed to purchase $200 billion worth of U.S. products over the next two years as part of the deal. The deal is a huge win for the U.S. as total exports to China would increase to approximately $260 billion in 2020 and almost $310 billion in 2021.

On March 11, 2020, the World Health Organization (WHO) declared the novel coronavirus (COVID-19) outbreak a global pandemic. Economies around the world faced significant headwinds as seen by the severe drop in demand for some services (such as travel, hospitality and entertainment). Further reduced economic activity resulted from increasing social distance measures, including quarantines or lockdowns, throughout Europe and North America, as governments have taken unprecedented actions to stop the spread of the virus. The stock market became extremely volatile as financial markets struggled to quantify the effects of these events. In the last couple of months, the stock market has rebounded, but still experiences some volatility. As of August 2020, many states and countries are in various stages of reopening, but CRE participants are still trying to understand market impacts, and accurately assessing risk remains difficult. Proceeding through these uncertain times, the reader is asked to consider some key events that affect the uncertainty:

• In March 2020, the Coronavirus Aid Relief and Economic Security, or CARES Act, was passed by Congress and signed by President Trump. The bill was intended to provide emergency assistance and health care for individuals, families and businesses affected by the COVID-19 pandemic. Totaling $2 trillion, the bill is unprecedented in size and scope, dwarfing the $831 billion stimulus act passed in 2009, and amounting to 10% of total 2019 US GDP. • In May 2020, many believed that even more action was needed, and, in response, the House of Representatives introduced a new stimulus bill called the Health and Economic Recovery Omnibus Emergency Solutions Act, or HEROES Act. At $3 trillion, the proposal would be the largest stimulus bill in American history, far surpassing the $2 trillion CARES Act, and would provide a new stimulus check, funding for state and local governments, hazard pay for essential workers, funding for coronavirus testing, rent and mortgage assistance, an extension of the $600 weekly unemployment expansion, additional funding for small businesses, emergency relief for the U.S. Postal Service, and provisions for election safety and facilitating voting by mail. As of August 2020, the bill has yet to pass in the Senate and Congress has taken recess until September.

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• In June 2020, cases in the U.S. started to rise again after a small lull. Most of the cases were concentrated in 19 states across the south, west, and mid-west regions. Elsewhere in the world, cases started to surge in India, Brazil, and various African countries. • In late July 2020, the European Union agreed on an $857 billion stimulus package to rescue their economy from the effects of the pandemic. The package is unprecedented and is focused on helping the Union’s less wealthy countries by selling collective debt and giving out money as grants, not loans. • On August 2, 2020, Dr. Deborah L. Birx, the Trump Administration’s coronavirus coordinator, said that the country is in a “new phase” of the coronavirus pandemic and that it is much more extensive than the spring outbreaks that were centered around major cities like New York and Seattle. Right now, the U.S. is in various stages of reopening, with some states having to retract reopening plans as cases in their area rebounded or surged. In total, there have been 18.1 million COVID-19 cases worldwide with 4.7 million, or about a quarter of the global total, reported in the U.S. In recent times, the CRE market has been driven by investor demand and strong liquidity. Asset values can fall significantly in short periods of time if either of these two factors, often in conjunction with many others, change significantly. While Cushman & Wakefield is closely monitoring the latest developments resulting from the COVID- 19 pandemic, and will continue to provide updates as events unfold, the reader is cautioned to consider that values and incomes are likely to change more rapidly and significantly than during standard market conditions. Furthermore, the reader should be cautioned and reminded that any conclusions presented in this appraisal report apply only as of the effective date(s) indicated. The appraiser makes no representation as to the effect on the subject property(ies) of this event, or any event, subsequent to the effective date of the appraisal. The U.S. entered a recession in first quarter 2020, and the second quarter drop proved to be the worst since the Great Depression. While initial thoughts pointed to a quick V-shaped recovery in the second half of the year, most economists are now forecasting a longer U-shaped recovery, with a full recovery not expected until the end of 2021 or 2022.

The following graph displays historical and projected U.S. real GDP percentage change (annualized on a quarterly basis) from first quarter 2014 through fourth quarter 2021:

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Further points regarding current economic conditions are as follows: • Through second quarter 2020, GDP dropped 32.9% in response to the global pandemic as the economy slowed during the government enforced shutdown. Moody’s baseline forecasts a 14.6% increase in GDP for third quarter 2020, followed by an increase of 8.3% in the fourth quarter. By fourth quarter 2020, Moody’s is expecting the economy to level off, and heading into 2021 GDP is expected to continue increasing as the nation recovers from the fiscal strain brought on by the pandemic. • Prior to the current disruption, economists had forecast continued economic expansion through 2021. The National Association for Business Economics had anticipated a 1.8% growth in GDP for 2020, while the Urban Land Institute’s annual forecast survey expected the economy to grow 1.9% in 2021. • Commercial and multifamily mortgage loan originations decreased 2% in first quarter 2020 (latest data available) when compared to the first quarter of 2019, according to the Mortgage Bankers Association's Quarterly Survey of Commercial/Multifamily Mortgage Banker. Loan origination in the first three months of 2020 were 40% lower than fourth quarter 2019. The coronavirus has disrupted what was expected to be a strong year of borrowing and lending. • Commercial Mortgage Alert data indicates that U.S. CMBS issuance in second quarter 2020 was at $30 billion, or 24.8% lower when compared to CMBS issuance during the same period in 2019. As of July 2020, Commercial Mortgage Alert data indicates that U.S. CMBS issuance sits at $33.4 billion but is expected to slow significantly as the year progresses. U.S. Real Estate Market Implications

The commercial real estate market’s sales volume totaled approximately $165 billion through June 2020 and at the end of second quarter 2020 pricing for commercial real estate sat at $171 per square foot. During second quarter 2020, all property types continued to see decreases to transaction volume in a year-over-year comparison. According to Real Capital Analytics, there was not one single entity-level transaction during the second quarter. Transaction volume totaled $44.7 billion in June 2020 falling by 68% in a year-over-year comparison. The hotel sector saw the largest decrease in transaction volume, falling by 91%. Retail transaction activity was down 73% in second quarter 2020 from second quarter 2019. The apartment sector saw transaction volume fall by 70% while the office sector dropped by 71% over the same time period. The industrial sector sales volume fell by 50% in a year-over-year comparison and totaled roughly $10.3 billion in transaction volume at the end of June 2020.

The following graph compares national transaction volume by property from 2009 through June 2020:

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According to PricewaterhouseCoopers (PwC) Real Estate Investor Survey average cap rates for all property types increased in 26 survey markets, decreased in three, and held steady in five over second quarter 2020. For the year, more than half of the market averages are higher today than they were a year ago with 17 markets posting double- digit increases. Given current market conditions, we expect that cap rates may move upward in certain markets and for certain property types during the third quarter.

The following chart displays overall cap rate analysis of five distinct property classes during second quarter 2020:

Notable points for the U.S. real estate market include:

• Annual price growth in the six major metro areas rose 6.9% in first quarter of 2020 according to RCA, while annual price growth in the non-major metros rose by 10.1% in a year-over-year comparison. • Most participants in the PwC Real Estate Investor Survey believe that current market conditions favor buyers in the national net lease market (100%) due to the increased competition in the market by investors. With that said, the market is becoming increasingly bifurcated by location and category so investors remain unsure how buying opportunities will fair compared to 2019.

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• The national regional mall market records the largest quarterly cap rate shift at 72 basis points, as well as the highest year-over-year increase, climbing 87 basis points. At 7.8%, the Chicago office market improved by five basis points from the previous quarter and is still the highest, while Manhattan office market, at 5.2%, remains as the lowest cap rate but improved from first quarter 2020. Over the next six months, most surveyed investors foresee overall cap rates holding steady in most markets but expect cap rate increases in 13 markets. For April 2020 transaction volume totaled slightly over $11 billion, falling by 70.6% in a year-over-year comparison. Conclusion

The U.S. economy entered 2020 in solid shape, although the pace of growth appeared to be slowing. With the emergence of the global coronavirus pandemic in March 2020, the U.S. entered a recession. The country witnessed its worst drop in GDP on record, and the lasting effects the coronavirus will have are still too early to be estimated. While, it is widely anticipated that the U.S. economy will begin to expand again in the second half of the year, growth may be mild and economic activity may not recover to pre-coronavirus levels until well into 2021, or possibly as late as 2022. Much of the economic recovery will depend on the path and the severity of the coronavirus, potential future outbreaks, the ability to open up various sectors of the economy, and ultimately, a treatment or vaccine.

Below are notes regarding the outlook for the U.S. national real estate market in 2020 and beyond:

• Investment activity is slowing across the globe. Many investors have “pushed the pause button” waiting for more clarity on economic conditions before determining their strategy. Investors are still flush with cash and will look for opportunity as the environment evolves and we head into the next cycle. • Monetary policy has been aggressively loosened across the board as global central banks lower interest rates and announce plans to purchase securities and take other actions to increase liquidity. • Overall, the outlook for the U.S. economy is clouded with uncertainty, but due to the high unemployment rate projected GDP declines, and other high frequency data trends which are similarly bleak. As of now, the expectation is that in the second half of the year, the tailwinds of the stimulus and pent-up demand will likely lead to the start of a rebound that will extend throughout 2021 at a tepid pace. After considering the above, the factors listed in the following table have been considered in the valuation of the subject property and have an impact on the selection of all investor rates.

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INVESTMENT CONSIDERATIONS

Real Estate Market Trends: Real estate market trends have a significant bearing on the value of real property. The real estate market in which the subject property is located is currently moderate.

Tenant Quality: The quality of a property's tenant base is an important factor that is scrutinized by investors prior to acquiring real property. The quality of the subject's tenant roster is considered to be average.

Property Rating: After considering all of the physical characteristics of the subject, we have concluded that this property has an overall rating that is good, when measured against other properties in this marketplace.

Location Rating: After considering all of the locational aspects of the subject, including regional and local accessibility as well as overall visibility, we have concluded that the location of this property is good.

Overall Investment Appeal: There are many factors that are considered prior to investing in this type of property. After considering all of these factors, we conclude that this property has average overall investment appeal.

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Capitalization Rate Analysis

An appropriate capitalization rate is selected by any combination of:

• Analyzing recent comparable sales • Reviewing investor survey data • Direct Interviews with local market participants Capitalization Rate from Comparable Sales

CAPITALIZATION RATE SUMMARY Capitalization No. Name and Location Sale Date Rate 1 Medical 8/2020 - 2575 South Lindell Road 2 Retail - Freestanding 7/2020 - 473 West Mesquite Boulevard 3 Whitney Mesa Office Plaza 9/2019 8.37% 1711 Whitney Mesa Drive 4 Office Building 9/2019 - 2972 South Rainbow Boulevard 5 Office Building 5/2019 - 786 West Pioneer Boulevard 6 Office Building 9/2018 8.25% 340 Falcon Ridge Parkway 7 Multi Tenant Office Building 3/2017 7.00% 736 West Pioneer Boulevard

STATISTICS

Sample Size 7 3 Low 3/2017 7.00% High 8/2020 8.37% Median 9/2019 8.25% Average 5/2019 7.87% Compiled by Cushman & Wakefield of Nevada, Inc. The one sale in Mesquite had a lower cap rate because the seller lease back rate was reportedly favorable.

Capitalization Rate from Investor Surveys

We considered data extracted from the Investor Survey for institutional grade assets. Earlier in the report, we presented historical capitalization rates for the prior four-year period. The most recent information from this survey is listed in the following table:

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INVESTOR SURVEY HISTORICAL RESULTS Survey: PwC End Quarter: Property Type: NATIONAL SUBURBAN OFFICE 2Q 20 Quarter 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 OAR (average) 6.43% 6.63% 6.61% 6.64% 6.69% 6.72% 6.61% 6.58% 6.52% 6.63% 6.64% 6.64% 6.28% 6.36% 6.36% 6.00% Terminal OAR (average) 7.28% 7.59% 7.39% 7.45% 7.42% 7.61% 7.59% 7.57% 7.45% 7.45% 7.38% 7.34% 7.10% 7.10% 6.98% 6.58% IRR (average) 7.59% 7.86% 7.88% 7.97% 8.03% 8.34% 8.32% 8.29% 8.16% 8.18% 8.18% 8.14% 7.63% 7.67% 7.54% 7.43%

INVESTOR SURVEY HISTORICAL RESULTS

OAR (average) Terminal OAR (average) IRR (average)

8.50%

8.25%

8.00%

7.75%

7.50%

7.25%

7.00% RATES 6.75%

6.50%

6.25%

6.00%

5.75%

5.50% 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 ANALYSIS PERIOD

Source: PwC Real Estate Investor Survey

The most recent PwC data above indicates lower cap rates from one quarter prior but fewer transactions have occurred so this data may not capture current market conditions.

In addition to the PwC survey, we considered data extracted from various investor surveys for comparable properties. The survey data tends to lag the current market. The most recent information from this survey is listed in the following table:

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CAPITALIZATION RATES Survey Date Range Average PwC Institutional Second Quarter 2020 4.00% - 7.50% 6.00% PwC Noninstitutional Second Quarter 2020 7.30% RealtyRates Suburban Office Third Quarter 2020 4.42% - 11.54% 7.18% Realty Rates Un-Anchored Retail Third Quarter 2020 5.51% - 14.50% 9.30% Real Capital Analytics Office Second Quarter 2020 6.80% RERC - Neighborhood Retail Second Quarter 2020 4.80% - 7.00% 6.10% RERC - Suburban Office Second Quarter 2020 5.50% - 7.10% 6.40% PwC Institutional - Refers to National Suburban Office market regardless of class or occupancy PwC Noninstitutional - Reflects the average rate for this property type, adjusted by the average premium Market Participant Discussions

Given the prevailing financial and economic turmoil, there are relatively fewer potential buyers within the marketplace. Brokers indicate market based cap rates in the Las Vegas area from 7.00 to 7.50 percent and state that cap rates in rural secondary areas such as Mesquite would warrant a higher cap rate of 50 basis points.

Capitalization Rate Conclusion

We considered all aspects of the subject property that would influence the overall rate. The subject is a noninvestment-grade asset in a secondary market. We considered OARs indicated by sales of comparable properties, national investor surveys, and the opinions of brokers, owners, and prospective purchasers. The indications from these various sources are:

CAPITALIZATION RATE SUMMARY Comparable Sales 7.87% PwC Institutional 6.00% PwC Noninstitutional 7.30% Investor Survey Data 7.18% to 9.30% Market Participants 7.50% to 8.00% Conclusion 8.00% Compiled by Cushman & Wakefield of Nevada, Inc. We believe that data derived from our discussions with market participants and comparable sales most clearly reflects current market parameters. Given the property size, location and prevailing market return rates, we conclude that a 8.00 percent OAR is applicable to the subject NOI forecast. The rate selected is similar to the average indicated by comparable sales and in the higher end of the range of the investor survey but is reasonable given the size and location.

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Direct Capitalization Method Conclusion

In the Direct Capitalization Method, we developed an opinion of market value by dividing year one net operating income by our selected overall capitalization rate. Our conclusion using the Direct Capitalization Method is as follows:

DIRECT CAPITALIZATION METHOD Market Value As-Is NET OPERATING INCOME $116,526 $6.52 Sensitivity Analysis (0.25% OAR Spread) Value $/SF NRA Based on Low-Range of 7.75% $1,503,556 $84.13 Based on Most Probable Range of 8.00% $1,456,570 $81.50 Based on High-Range of 8.25% $1,412,432 $79.03 Indicated Value $1,456,570 $81.50 LESS Demolition, TI Cost and Profit ($353,866) ($19.80) Adjusted Value $1,102,704 $61.70 Rounded to nearest $10,000 $1,100,000 $61.55 Compiled by Cushman & Wakefield of Nevada, Inc.

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Reconciliation and Final Value Opinion

Valuation Methodology Review and Reconciliation

The approaches indicated the following:

FINAL VALUE RECONCILIATION Market Value As-Is PSF Date of Value August 25, 2020 Sales Comparison Approach Percentage Adjustment Method $1,165,000 $65.19 Conclusion $1,165,000 $65.19

Income Capitalization Approach Direct Capitalization $1,100,000 $61.55 Conclusion $1,100,000 $61.55

Final Value Conclusion $1,150,000 $64.35 Compiled by Cushman & Wakefield of Nevada, Inc. We gave most weight to the Sales Comparison Approach because this mirrors the methodology used by purchasers of this property type. The Direct Capitalization Income Approach offers support, but without an encumbering lease in place, this method is not considered a primary valuation approach for this type of property.

Value Conclusions Appraisal Premise Real Property Interest Date of Value Value Conclusion Market Value As-Is Fee Simple August 25, 2020 $1,150,000 Compiled by Cushman & Wakefield of Nevada, Inc. The sales data in Mesquite is very limited and includes distress and REO sales that were considered but not used in the primary data set. The majority of these sales occurred in 2015 and involved smaller office buildings. However, there have been sales of industrial flex, larger office with vacancy and high vacancy retail buildings that have also sold with some level of distress. A total of 12 sales were considered over the last 3 years, with the distress sales trading in the $50/sf range regardless of size, property type of date sold. The buyer of one of these buildings acknowledged that the price he paid was well below replacement costs which would be $150 per square foot. When evaluating the sale prices for the 4 lender sales in comparison to the 8 non-lender/distress sales we noted that the lender sales were on the market 5 times longer and the sale prices were on average 27 percent lower than non- lender/REO/distress properties. In addition, when comparing the 6 properties that sold with high vacancy in comparison to 6 stabilized or owner user sales, the marketing times for the high vacancy properties was also 5 times longer with a 20 percent lower sale price. If the above concluded value is discounted by 25 percent the distress price would be $48.75 per square foot which is supported in the market. We have not assumed a distress sale but this price suggests a potential lower range value if distress conditions were in place.

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COMMERCIAL OFFICE BUILDING ASSUMPTIONS AND LIMITING CONDITIONS

Assumptions and Limiting Conditions

"Report" means the appraisal or consulting report and conclusions stated therein, to which these Assumptions and Limiting Conditions are annexed. "Property" means the subject of the Report. "Cushman & Wakefield" means Cushman & Wakefield, Inc. or its subsidiary that issued the Report. "Appraiser(s)" means the employee(s) of Cushman & Wakefield who prepared and signed the Report. The Report has been made subject to the following assumptions and limiting conditions: • No opinion is intended to be expressed and no responsibility is assumed for the legal description or for any matters that are legal in nature or require legal expertise or specialized knowledge beyond that of a real estate appraiser. Title to the Property is assumed to be good and marketable and the Property is assumed to be free and clear of all liens unless otherwise stated. No survey of the Property was undertaken. • The information contained in the Report or upon which the Report is based has been gathered from sources the Appraiser assumes to be reliable and accurate. The owner of the Property may have provided some of such information. Neither the Appraiser nor Cushman & Wakefield shall be responsible for the accuracy or completeness of such information, including the correctness of estimates, opinions, dimensions, sketches, exhibits and factual matters. Any authorized user of the Report is obligated to bring to the attention of Cushman & Wakefield any inaccuracies or errors that it believes are contained in the Report. • The opinions are only as of the date stated in the Report. Changes since that date in external and market factors or in the Property itself can significantly affect the conclusions in the Report. • The Report is to be used in whole and not in part. No part of the Report shall be used in conjunction with any other analyses. Publication of the Report or any portion thereof without the prior written consent of Cushman & Wakefield is prohibited. Reference to the Appraisal Institute or to the MAI designation is prohibited. Except as may be otherwise stated in the letter of engagement, the Report may not be used by any person(s) other than the party(ies) to whom it is addressed or for purposes other than that for which it was prepared. No part of the Report shall be conveyed to the public through advertising, or used in any sales, promotion, offering or SEC material without Cushman & Wakefield's prior written consent. Any authorized user(s) of this Report who provides a copy to, or permits reliance thereon by, any person or entity not authorized by Cushman & Wakefield in writing to use or rely thereon, hereby agrees to indemnify and hold Cushman & Wakefield, its affiliates and their respective shareholders, directors, officers and employees, harmless from and against all damages, expenses, claims and costs, including attorneys' fees, incurred in investigating and defending any claim arising from or in any way connected to the use of, or reliance upon, the Report by any such unauthorized person(s) or entity(ies). • Except as may be otherwise stated in the letter of engagement, the Appraiser shall not be required to give testimony in any court or administrative proceeding relating to the Property or the Appraisal. • The Report assumes (a) responsible ownership and competent management of the Property; (b) there are no hidden or unapparent conditions of the Property, subsoil or structures that render the Property more or less valuable (no responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them); (c) full compliance with all applicable federal, state and local zoning and environmental regulations and laws, unless noncompliance is stated, defined and considered in the Report; and (d) all required licenses, certificates of occupancy and other governmental consents have been or can be obtained and renewed for any use on which the value opinion contained in the Report is based. • The physical condition of the improvements considered by the Report is based on visual inspection by the Appraiser or other person identified in the Report. Cushman & Wakefield assumes no responsibility for the soundness of structural components or for the condition of mechanical equipment, plumbing or electrical components. • The forecasted potential gross income referred to in the Report may be based on lease summaries provided by the owner or third parties. The Report assumes no responsibility for the authenticity or completeness of lease information provided by others. Cushman & Wakefield recommends that legal advice be obtained regarding the interpretation of lease provisions and the contractual rights of parties.

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• The forecasts of income and expenses are not predictions of the future. Rather, they are the Appraiser's best opinions of current market thinking on future income and expenses. The Appraiser and Cushman & Wakefield make no warranty or representation that these forecasts will materialize. The real estate market is constantly fluctuating and changing. It is not the Appraiser's task to predict or in any way warrant the conditions of a future real estate market; the Appraiser can only reflect what the investment community, as of the date of the Report, envisages for the future in terms of rental rates, expenses, and supply and demand. • Unless otherwise stated in the Report, the existence of potentially hazardous or toxic materials that may have been used in the construction or maintenance of the improvements or may be located at or about the Property was not considered in arriving at the opinion of value. These materials (such as formaldehyde foam insulation, asbestos insulation and other potentially hazardous materials) may adversely affect the value of the Property. The Appraisers are not qualified to detect such substances. Cushman & Wakefield recommends that an environmental expert be employed to determine the impact of these matters on the opinion of value. • Unless otherwise stated in the Report, compliance with the requirements of the Americans with Disabilities Act of 1990 (ADA) has not been considered in arriving at the opinion of value. Failure to comply with the requirements of the ADA may adversely affect the value of the Property. Cushman & Wakefield recommends that an expert in this field be employed to determine the compliance of the Property with the requirements of the ADA and the impact of these matters on the opinion of value. • If the Report is submitted to a lender or investor with the prior approval of Cushman & Wakefield, such party should consider this Report as only one factor, together with its independent investment considerations and underwriting criteria, in its overall investment decision. Such lender or investor is specifically cautioned to understand all Extraordinary Assumptions and Hypothetical Conditions and the Assumptions and Limiting Conditions incorporated in this Report. • In the event of a claim against Cushman & Wakefield or its affiliates or their respective officers or employees or the Appraisers in connection with or in any way relating to this Report or this engagement, the maximum damages recoverable shall be the amount of the monies actually collected by Cushman & Wakefield or its affiliates for this Report and under no circumstances shall any claim for consequential damages be made. • If the Report is referred to or included in any offering material or prospectus, the Report shall be deemed referred to or included for informational purposes only and Cushman & Wakefield, its employees and the Appraiser have no liability to such recipients. Cushman & Wakefield disclaims any and all liability to any party other than the party that retained Cushman & Wakefield to prepare the Report. • Unless otherwise noted, we were not given a soil report to review. However, we assume that the soil’s load-bearing capacity is sufficient to support existing and/or proposed structure(s). We did not observe any evidence to the contrary during our physical inspection of the property. Drainage appears to be adequate. • Unless otherwise noted, we were not given a title report to review. We do not know of any easements, encroachments, or restrictions that would adversely affect the site’s use. However, we recommend a title search to determine whether any adverse conditions exist. • Unless otherwise noted, we were not given a wetlands survey to review. If subsequent engineering data reveal the presence of regulated wetlands, it could materially affect property value. We recommend a wetlands survey by a professional engineer with expertise in this field. • Unless otherwise noted, we observed no evidence of toxic or hazardous substances during our inspection of the site. However, we are not trained to perform technical environmental inspections and recommend the hiring of a professional engineer with expertise in this field. • Unless otherwise noted, we did not inspect the roof nor did we make a detailed inspection of the mechanical systems. The appraisers are not qualified to render an opinion regarding the adequacy or condition of these components. The client is urged to retain an expert in this field if detailed information is needed. • By use of this Report each party that uses this Report agrees to be bound by all of the Assumptions and Limiting Conditions, Hypothetical Conditions and Extraordinary Assumptions stated herein.

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COMMERCIAL OFFICE BUILDING CERTIFICATION

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 are our personal, impartial, and unbiased professional analyses, opinions, and conclusions. • We have no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved. • We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. • Our engagement in this assignment was not contingent upon developing or reporting predetermined results. • Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. • The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics & Standards of Professional Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice. • The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. • Petra Latch, MAI did make a personal inspection of the property that is the subject of this report. • Petra Latch, MAI has not provided prior services, as an appraiser or in any other capacity, within the three-year period immediately preceding acceptance of this assignment. • No one provided significant real property appraisal assistance to the persons signing this report. • As of the date of this report, Petra Latch, MAI has completed the continuing education program for Designated Members of the Appraisal Institute.

Petra Latch, MAI Executive Director Nevada Certified General Appraiser License No. A.0004239-CG [email protected] 702-605-1561 Office Direct

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COMMERCIAL OFFICE BUILDING ADDENDA CONTENTS

Addenda Contents

Addendum A: Glossary of Terms & Definitions Addendum B: Client Satisfaction Survey Addendum C: Engagement Letter Addendum D: Comparable Improved Sale Data Sheets Addendum E: Comparable Lease Data Sheets Addendum F: Clark County Assessor and Treasurer Data Addendum G: Mesquite Veterans Center Lease Addendum H: Southern Nevada Health District Lease Addendum I: Declaration of Restrictions Addendum J: Qualifications of the Appraiser

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Addendum A: Glossary of Terms & Definitions

The following definitions of pertinent terms are taken from The Dictionary of Real Estate Appraisal, Sixth Edition (2015), published by the Appraisal Institute, Chicago, IL, as well as other sources. As Is Market Value

The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date. (Proposed Interagency Appraisal and Evaluation Guidelines, OCC-4810-33-P 20%) Band of Investment

A technique in which the capitalization rates attributable to components of a capital investment are weighted and combined to derive a weighted-average rate attributable to the total investment. Cash Equivalency

An analytical process in which the sale price of a transaction with nonmarket financing or financing with unusual conditions or incentives is converted into a price expressed in terms of cash. Depreciation

1. In appraising, a loss in property value from any cause; the difference between the cost of an improvement on the effective date of the appraisal and the market value of the improvement on the same date. 2. In accounting, an allowance made against the loss in value of an asset for a defined purpose and computed using a specified method. Disposition Value

The most probable price that a specified interest in real property is likely to bring under all of the following conditions:

• Consummation of a sale will occur within a limited future marketing period specified by the client. • The actual market conditions currently prevailing are those to which the appraised property interest is subject. • The buyer and seller is each acting prudently and knowledgeably. • The seller is under compulsion to sell. • The buyer is typically motivated. • Both parties are acting in what they consider their best interest. • An adequate marketing effort will be made in the limited time allowed for the completion of a sale. • Payment will be made in cash in U.S. dollars or in terms of financial arrangements comparable thereto. • The price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. Note that this definition differs from the definition of market value. The most notable difference relates to the motivation of the seller. In the case of Disposition value, the seller would be acting under compulsion within a limited future marketing period. Ellwood Formula

A yield capitalization method that provides a formulaic solution for developing a capitalization rate for various combinations of equity yields and mortgage terms. The formula is applicable only to properties with stable or stabilized income streams and properties with income streams expected to change according to the J- or K-factor pattern. The formula is RO = [YE – M (YE + P 1/Sn¬ – RM) – ΔO 1/S n¬] / [1 + ΔI J] where RO = Overall Capitalization Rate YE = Equity Yield Rate M = Loan-to-Value Ratio P = Percentage of Loan Paid Off 1/S n¬ = Sinking Fund Factor at the Equity Yield Rate RM =Mortgage Capitalization Rate ΔO = Change in Total Property Value ΔI = Total Ratio Change in Income

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J = J Factor Also called mortgage-equity formula. Exposure Time

1. The time a property remains on the market. 2. The estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective estimate based on an analysis of past events assuming a competitive and open market. See also marketing time. Extraordinary Assumption

An assignment-specific assumption, as of the effective date regarding uncertain information used in an analysis, which, if found to be false, could alter the appraiser’s opinions or conclusions.

Comment: Uncertain information might include physical, legal, or economic characteristics of the subject property; or conditions external to the property, such as market conditions or trends; or the integrity of data used in an analysis.

Fee Simple Estate

Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. Highest and Best Use

The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity.

Highest and Best Use of Property as Improved

The use that should be made of a property as it exists. An existing improvement should be renovated or retained as is so long as it continues to contribute to the total market value of the property, or until the return from a new improvement would more than offset the cost of demolishing the existing building and constructing a new one.

Hypothetical Conditions

A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis.

Comment: Hypothetical conditions are contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. Insurable Replacement Cost/Insurable Value

A type of value for insurance purposes.

Intended Use

The use or uses of an appraiser’s reported appraisal, appraisal review, or appraisal consulting assignment opinions and conclusions, as identified by the appraiser based on communication with the client at the time of the assignment.

Intended User

The client and any other party as identified, by name or type, as users of the appraisal, appraisal review, or appraisal consulting report by the appraiser on the basis of communication with the client at the time of the assignment.

Leased Fee Interest

A freehold (ownership interest) where the possessory interest has been granted to another party by creation of a contractual landlord-tenant relationship (i.e., a lease). Leasehold Interest

The tenant’s possessory interest created by a lease. See also negative leasehold; positive leasehold.

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Liquidation Value

The most probable price that a specified interest in real property is likely to bring under all of the following conditions:

• Consummation of a sale will occur within a severely limited future marketing period specified by the client. • The actual market conditions currently prevailing are those to which the appraised property interest is subject. • The buyer is acting prudently and knowledgeably. • The seller is under extreme compulsion to sell. • The buyer is typically motivated. • The buyer is acting in what he or she considers his or her best interest. • A limited marketing effort and time will be allowed for the completion of a sale. • Payment will be made in cash in U.S. dollars or in terms of financial arrangements comparable thereto. • The price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. Note that this definition differs from the definition of market value. The most notable difference relates to the motivation of the seller. Under market value, the seller would be acting in his or her own best interests. The seller would be acting prudently and knowledgeably, assuming the price is not affected by undue stimulus or atypical motivation. In the case of liquidation value, the seller would be acting under extreme compulsion within a severely limited future marketing period.

Market Rent

The most probable rent that a property should bring in a competitive and open market reflecting all conditions and restrictions of the lease agreement, including permitted uses, use restrictions, expense obligations, term, concessions, renewal and purchase options, and tenant improvements (TIs).

Market Value

As defined in the Agencies’ appraisal regulations, the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus.

Implicit in this definition are the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:

• Buyer and seller are typically motivated; • Both parties are well informed or well advised, and acting in what they consider their own best interests; • A reasonable time is allowed for exposure in the open market; • Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and • The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.1 Marketing Time

An opinion of the amount of time it might take to sell a real or personal property interest at the concluded market value level during the period immediately after the effective date of an appraisal. Marketing time differs from exposure time, which is always presumed to precede the effective date of an appraisal. (Advisory Opinion 7 of the Appraisal Standards Board of The Appraisal Foundation and Statement on Appraisal Standards No. 6, “Reasonable Exposure Time in Real Property and Personal Property Market Value Opinions” address the determination of reasonable exposure and marketing time.) See also exposure time.

Mortgage-Equity Analysis

Capitalization and investment analysis procedures that recognize how mortgage terms and equity requirements affect the value of income-producing property. Prospective Opinion of Value

A value opinion effective as of a specified future date. The term does not define a type of value. Instead, it identifies a value opinion as being effective at some specific future date. An opinion of value as of a prospective date is frequently sought in connection with projects that are proposed, under construction, or under conversion to a new use, or those that have not yet achieved sellout or a stabilized level of long-term occupancy. Prospective Value upon Reaching Stabilized Occupancy

The value of a property as of a point in time when all improvements have been physically constructed and the property has been leased to its optimum level of long- term occupancy. At such point, all capital outlays for tenant improvements, leasing commissions, marketing costs and other carrying charges are assumed to have been incurred.

1 “Interagency Appraisal and Evaluation Guidelines.” Federal Register 75:237 (December 10, 2010) p. 77472.

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Special, Unusual, or Extraordinary Assumptions

Before completing the acquisition of a property, a prudent purchaser in the market typically exercises due diligence by making customary enquiries about the property. It is normal for a Valuer to make assumptions as to the most likely outcome of this due diligence process and to rely on actual information regarding such matters as provided by the client. Special, unusual, or extraordinary assumptions may be any additional assumptions relating to matters covered in the due diligence process, or may relate to other issues, such as the identity of the purchaser, the physical state of the property, the presence of environmental pollutants (e.g., ground water contamination), or the ability to redevelop the property.

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Addendum B: Client Satisfaction Survey

Survey Link: https://www.surveymonkey.com/r/LQKCGLF?c=20-56001-900158-001 Cushman & Wakefield File ID: 20-56001-900158-001 Fax Option: (713) 963 2870

1. Based on the scope and complexity of the assignment, please rate the development of the appraisal relative to the adequacy and relevance of the data, the appropriateness of the techniques used, and the reasonableness of the analyses, opinions, and conclusions:

__ Excellent __ Good __ Average __ Below Average __ Poor

Comments:______

2. Please rate the appraisal report on clarity, attention to detail, and the extent to which it was presentable to your internal/external users without revisions:

__ Excellent __ Good __ Average __ Below Average __ Poor

Comments:______

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3. The appraiser communicated effectively by listening to your concerns, showed a sense of urgency in responding, and provided convincing support of his/her conclusions:

__ Not Applicable __ Excellent __ Good __ Average __ Below Average __ Poor

Comments:______

4. The report was on time as agreed, or was received within an acceptable time frame if unforeseen factors occurred after the engagement:

__ Yes __ No

Comments:______

5. Please rate your overall satisfaction relative to cost, timing, and quality:

__ Excellent __ Good __ Average __ Below Average __ Poor

Comments:______

6. Any additional comments or suggestions you feel our National Quality Control Committee should know?

______

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7. Would you like a representative of our National Quality Control Committee to contact you?

__ Yes __ No

Name & Phone (if contact is desired): ______

Contact Information: Rick Zbranek, MAI Senior Managing Director, National Quality Control T +1 (713) 963 2863 F +1 (713) 963 2870

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Addendum C: Engagement Letter

CUSHMAN & WAKEFIELD

Petra Latch, MAI Executive Director

Cushman & Wakefield of Nevada, Inc. Valuation & Advisory 6725 Via Austi Parkway, Suite 275 Las Vegas, NV 89119 702.796.7900 Tel [email protected]

8/24/2020

Aaron Baker, City Manager CITY OF MESQUITE 10 East Mesquite Boulevard Mesquite, NV 89027

Re: Commercial Building 001-19-501-005 840 West Hafen Lane Mesquite, NV 89027

Dear Mr. Baker:

Thank you for requesting our proposal for appraisal services. This proposal letter will become, upon your acceptance, our letter of engagement to provide the services outlined herein.

TERMS OF ENGAGEMENT

I. PROBLEM IDENTIFICATION

The Parties to This Agreement: Cushman & Wakefield of Nevada, Inc. (“C&W”) and Aaron Baker, on behalf of the City of Mesquite (the “Client”). Intended Users: The appraisal will be prepared for the Client and is intended only for the use specified below. The Client agrees that there are no other Intended Users. Intended Use: Establish Market Value to determine whether or not an exchange transaction is feasible.

Type of Opinion and Rights Appraised: Market Value of the Fee Simple interest. Date of Value: • Current as of date of site visit

Subject of the Assignment and The property to be appraised is a commercial building Relevant Characteristics: improved with medical office buildout located at 840 West Hafen Lane, Mesquite, NV.

Assignment Conditions: None noted– TBD as necessary

II. ANTICIPATED SCOPE OF WORK USPAP Compliance: C&W will develop an appraisal in accordance with USPAP and the Code of Ethics and Certification Standards of the Appraisal Institute.

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General Scope of Work: • Property Inspection to the extent necessary to adequately identify the real estate • Research relevant market data, in terms of quantity, quality, and geographic comparability, to the extent necessary to produce credible appraisal results • Consider and develop those approaches relevant and applicable to the appraisal problem. Based on our discussions with the Client, we anticipate developing the following valuation approaches: • Sales Comparison and Income Approaches

III. REPORTING AND DISCLOSURE Scope of Work Disclosure: The actual Scope of Work will be reported within the report. Reporting Option: The appraisal will be communicated in one Appraisal Reports.

IV. FEE, EXPENSES AND OTHER TERMS OF ENGAGEMENT Fee: $2,500 All invoices are due upon receipt. The Client shall be solely responsible for C&W’s fees and expenses hereunder. Acknowledgement of this obligation is made by the countersignature to this agreement by an authorized representative of the Client.

Additional Expenses: Fee quoted is inclusive of expenses related to the preparation of the report. Retainer: A retainer is not required for this assignment in order to commence work. Report Copies: The final report will be delivered in electronic format.

Start Date: The appraisal process will initiate upon receipt of signed agreement, applicable retainer, and the receipt of the property- specific data. Acceptance Date: This proposal is subject to withdrawal if the engagement letter is not executed by the Client within four (4) business days.

Final Report Delivery: Within 3 weeks of receipt of your written authorization to proceed, assuming prompt receipt of necessary property information. Payment of the fee shall be due and payable upon delivery of the report.

Changes to Agreement: The identity of the Client, Intended User(s) identified herein, or Intended Use identified herein; the date of value; type of value or interest appraised; or property appraised cannot be changed without a new agreement.

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Prior Services Disclosure: USPAP requires disclosure of prior services performed by the individual appraiser within the three years prior to this assignment. The undersigned appraiser(s) has/have not provided prior services within the designated time frame. Future Marketing Disclosure: Unless otherwise directed, at the conclusion of this engagement, we may disclose that we have appraised the subject property in future marketing documents and materials. Conflicts of Interest: C&W adheres to a strict internal conflict of interest policy. If we discover in the preparation of our appraisal a conflict with this assignment, we reserve the right to withdraw from the assignment without penalty. Cancellation of Engagement: Client may cancel this agreement at any time prior to C&W’s delivery of the appraisal report upon written notification to C&W. Client shall pay C&W for work completed on the assignment prior to C&W’s receipt of written cancellation notice, unless otherwise agreed upon by C&W and Client in writing.

Withdrawal of Appraiser Prior to C&W may withdraw without penalty or liability from the Completion of Assignment: assignment(s) contemplated under this agreement before completion or reporting of the appraisal in the event that C&W determines, at C&W’s sole discretion, that insufficient information was provided to C&W prior to the engagement, that Client or other parties have not or cannot provide C&W with documentation or information necessary to C&W’s analysis or reporting, that conditions of the subject property render the original scope of work inappropriate, or that the Client has not complied with its payment obligations under this agreement. C&W shall notify the Client of such withdrawal in writing.

Further Conditions of Engagement: The Conditions of Engagement attached hereto are incorporated herein and are part of this letter of engagement.

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Information Needed to Complete the Assignment

We understand that you will provide the following information for our review, if available. Physical Information • Cost of any major expansions, modifications or repairs incurred over the past three years/capital expense budget • On Site Contact—name and phone number—for property inspection • Property condition report • Estimate of costs to cure any deferred maintenance if available

Financial Information • Income & Expense Statements for three previous years plus year-to-date • Sales history of the subject property over the past three years at a minimum

Supporting Documentation • Lease(s) • Delinquency report identifying tenants in arrears or in default if applicable

Other Documentation • Title report if available • CC&Rs or any deed restriction documents • Additional Information to be considered in the appraisal

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CONDITIONS OF ENGAGEMENT

1) Each Intended User identified herein should consider be charged on an hourly basis for any work, which the appraisal as only one factor together with its exceeds the scope of this proposal, including independent investment considerations and performing additional valuation scenarios, additional underwriting criteria in its overall investment decision. research and conference calls or meetings with any The appraisal cannot be used by any party or for any party, which exceed the time allotted by C&W for an purpose other than the Intended User(s) identified assignment of this nature. If we are requested to stop herein for the Intended Use described herein. working on this assignment, for any reason, prior to 2) Unless identified expressly in this agreement, there our completion of the appraisal, C&W will be entitled are no third-party beneficiaries of agreement to bill the Client for the time expended to date at pertaining to the appraisal, and no other person or C&W’s hourly rates for the personnel involved. entity shall have any right, benefit or interest under 8) If C&W or any of its affiliates or any of their respective such agreement. The identification of a party as an employees receives a subpoena or other judicial intended user of the appraisal does not mean that the command to produce documents or to provide party is a third-party beneficiary of the agreement. testimony involving this assignment in connection with 3) The appraisal report will be subject to our standard a lawsuit or proceeding, C&W will use reasonable Assumptions and Limiting Conditions, which will be efforts to notify the Client of our receipt of same. incorporated into the appraisal. All users of the However, if C&W or any of its affiliates are not a party appraisal report are specifically cautioned to to these proceedings, Client agrees to compensate understand the standard Assumptions and Limiting C&W or its affiliate for the professional time and Conditions as well as any Extraordinary Assumptions reimburse C&W or its affiliate for the actual expense and Hypothetical Conditions which may be employed that it incurs in responding to any such subpoena or by the appraiser and incorporated into the appraisal. judicial command, including attorneys’ fees, if any, as they are incurred. C&W or its affiliate will be 4) C&W shall have the right to utilize its affiliates in the compensated at the then prevailing hourly rates of the performance of its services, provided that they comply personnel responding to the subpoena or command with the obligations of C&W pursuant to this for testimony. engagement. 9) By signing this agreement Client expressly agrees 5) The appraisal report or our name may not be used in that its sole and exclusive remedy for any and all any offering memoranda or other investment material losses or damages relating to this agreement or the without the prior written consent of C&W, which may appraisal shall be limited to the amount of the be given at the sole discretion of C&W. Any such appraisal fee paid by the Client. In the event that the consent, if given, shall be conditioned upon our Client, or any other party entitled to do so, makes a receipt of an indemnification agreement from a party claim against C&W or any of its affiliates or any of satisfactory to us and in a form satisfactory to us. their respective officers or employees in connection Furthermore, Client agrees to pay the fees of C&W’s with or in any way relating to this engagement or the legal counsel for the review of the material which is appraisal, the maximum damages recoverable from the subject of the requested consent. C&W disclaims C&W or any of its affiliates or their respective officers any and all liability with regard to the appraisal or employees shall be the amount of the monies prepared pursuant to the engagement to any party actually collected by C&W or any of its affiliates for other than the Intended User(s). Under no this assignment and under no circumstances shall circumstances will C&W consent to the quote, any claim for consequential, indirect, special, punitive reference or inclusion of the appraisal in connection or liquidated damages be made. with crowd funding activities. Further, crowd funding investors are specifically excluded from any class of 10) C&W disclaims any and all liability to any party with Intended Users. regard to the appraisal report other than an Intended User identified herein. 6) In the event the Client provides a copy of the appraisal to, or permits reliance thereon by, any party 11) The fees and expenses shall be due C&W as agreed not identified herein as an Intended User, Client in this letter. If it becomes necessary to place hereby agrees to indemnify and hold C&W, its collection of the fees and expenses due C&W in the affiliates and the respective shareholders, directors, hands of a collection agent and/or an attorney officers and employees, harmless from and against all (whether or not a legal action is filed) Client agrees damages, expenses, claims and costs, including to pay all fees and expenses including attorneys’ attorneys’ fees, incurred in investigating and fees incurred by C&W in connection with the defending any claim arising from or in any way collection or attempted collection thereof. connected to the use of, or reliance upon, the 12) Unless the time period is shorter under applicable appraisal by any such party. law, any legal action or claim relating to the appraisal 7) The balance of the fee for the appraisal will be due or this agreement shall be filed in court (or in the upon delivery of a report. Payment of the fee is not applicable arbitration tribunal, if the parties to the contingent on the appraised value, a loan closing, or dispute have executed an arbitration agreement) any other prearranged condition. Additional fees will within two (2) years from the date of delivery to

CW LOE 2019-2020

Client of the appraisal report to which the claims or terminate this agreement and take such other actions causes of action relate or, in the case of acts or as are permitted or required to be taken under law or conduct after delivery of the report, two (2) years in equity. from the date of the alleged acts or conduct. The time period stated in this section shall not be extended by any delay in the discovery or accrual of the underlying claims, causes of action or damages. The time period stated in this section shall apply to all non-criminal claims or causes of action of any type. 13) Notwithstanding that C&W may comment on, analyze or assume certain conditions in the appraisal, C&W shall have no monetary liability or responsibility for alleged claims or damages pertaining to: (a) title defects, liens or encumbrances affecting the property; (b) the property’s compliance with local, state or federal zoning, planning, building, disability access and environmental laws, regulations and standards; (c) building permits and planning approvals for improvements on the property; (d) structural or mechanical soundness or safety; (e) contamination, mold, pollution, storage tanks, animal infestations and other hazardous conditions affecting the property; and (f) other conditions and matters for which licensed real estate appraisers are not customarily deemed to have professional expertise. 14) Legal claims or causes of action relating to the appraisal or this agreement are not assignable, except: (i) as the result of a merger, consolidation, sale or purchase of a legal entity, (ii) with regard to the collection of a bona fide existing debt for services but then only to the extent of the total compensation for the appraisal plus reasonable interest, or (iii) in the case of an appraisal performed in connection with the origination of a mortgage loan, as part of the transfer or sale of the mortgage before an event of default on the mortgage or note or its legal equivalent. 15) Each party represents and warrants to the other that it, and all persons and entities owning (directly or indirectly) an ownership interest in it: (a) are not, and will not become, a person or entity with whom a party is prohibited from doing business under regulations of the Office of Foreign Asset Control (“OFAC”) of the Department of the Treasury (including, but not limited to, those named on OFAC’s Specially Designated and Blocked Persons list) or under any statute, executive order or other governmental action; and (b) are not knowingly engaged in, and will not knowingly engage in, any dealings or transactions or be otherwise associated with such persons or entities described in clause (a) above. 16) Each party represents and warrants to the other that it (and any party acting on its behalf) has not, in order to enter into this agreement, offered, promised, authorized or made any payments or transfers of anything of value which have the purpose or effect of public or commercial bribery, kickbacks or other unlawful or improper means of doing business (“Prohibited Activity”) and will not engage in Prohibited Activity during the term of this agreement. In the event of any violation of this section, the non- offending party shall be entitled to immediately

CW LOE 2019-2020 ADDENDA CONTENTS

Addendum D: Comparable Improved Sale Data Sheets

CUSHMAN & WAKEFIELD

IMPROVED SALE COMPARABLE 1

Property Name: Medical Address: 2575 South Lindell Road City, State, Zip: Las Vegas NV 89146 MSA: Las Vegas County: Clark County Submarket: Property Type: Office Property Subtype: Medical Office Classification: N/A ID: 565795 Tax Number(s): 163-12-103-004

PROPERTY INFORMATION Site Area (Acres): 1.52 Number of Buildings: 1 Site Area (Sq.Ft.): 66,211 Number of Stories: 1 Gross Bldg Area: 15,041 Class: B Net Rentable Area: 15,041 Number of Parking Spaces: 89 Year Built: 1985 Parking Ratio: 5.92:1,000 Last Renovation: N/A Tenancy Type: Single-Tenant Quality: Good Condition: Fair SALE INFORMATION Status: Closed Sale OAR: N/A Sale Date: 8/2020 NOI: N/A Sale Price: $1,800,000 NOI per Sq.Ft.: N/A Price per Sq.Ft. $119.67 Occupancy: 0.00% Value Interest: Fee Simple Expense Ratio: N/A Grantor: Gerber Family Trust EGIM: N/A Grantee: RR Company of America LLC Buying Entity: Investor Financing: N/A No. of Years Remaining on Primary Lease: N/A Condition of Sale: Seller's Influence Investment Grade Credit: N/A Investment Grade Credit Rating: N/A

VERIFICATION COMMENTS COMPS; Public Records 20200819:01696; Broker

COMMENTS This property is located on the west side of Lindell Road, south of Sahara Avenue. The property was built out for medical office and surgical center but has been vacant for several years. The property has deferred maintenance and is in need of HVAC units and remodel. The buyer plans to demolish interior and potentially ready the building for lease to a medical/surgical user. Demolition is estimated at $5/sf, HVAC usually costs $1,100/ton and roof repair would be reasonable at $3/sf.

VALUATION & ADVISORY IMPROVED SALE COMPARABLE 2 Property Name: Retail - Freestanding Address: 473 West Mesquite Boulevard City, State, Zip: Mesquite NV 89027 MSA: Las Vegas County: Clark Submarket: Property Type: Retail-Commercial Property Subtype: Other (Retail-Commercial) Classification: N/A ID: 565828 Tax Number(s): 001-17-603-052 and 053

PROPERTY INFORMATION Site Area (Acres): 2.69 Number of Buildings: 1 Site Area (Sq.Ft.): 117,176 Number of Stories: 1 Gross Bldg Area: 16,748 Number of Parking 60 Gross Leasable Area: 16,748 ParkingSpaces: Ratio: 3.58:1,000 Year Built: 1984 L:B Ratio: 7.00:1 Last Renovation: N/A Tenancy Type: Single-Tenant Quality: Fair Condition: Fair

SALE INFORMATION Status: Closed Sale OAR: N/A Sale Date: 7/2020 NOI: N/A Sale Price: $1,300,000 NOI per Sq.Ft.: N/A Price per Sq.Ft.: $77.62 Occupancy: 0.00% Value Interest: Fee Simple Buying Entity: Owner-User Grantor: El Rancho Market LLC No. of Years Remaining on Primary Lease: N/A Grantee: Royal Solutions Nevada LLC InvestmentGradeCredit: N/A Financing: N/A InvestmentGradeCreditRating: N/A Condition of Sale: None

VERIFICATION COMMENTS COMPS; Public Records 20200701:02960

COMMENTS This property is located on the north side of Mesquite Boulevard, east of Grapevine Road. This building was vacant at the time of sale and has been for over a decade but was formerly used as a market with open box retail space. The buyer intends to keep the property for his own personal use; speculated to be a garage for personal vehicle storage.

VALUATION & ADVISORY IMPROVED SALE COMPARABLE 3

Property Name: Whitney Mesa Office Plaza Address: 1711 Whitney Mesa Drive City, State, Zip: Henderson NV 89014-2080 MSA: Las Vegas County: Clark County Submarket: Property Type: Office Property Subtype: Office Building Classification: Low-Rise ID: 565812 Tax Number(s): 161-32-710-019

PROPERTY INFORMATION Site Area (Acres): 2.61 Number of Buildings: 1 Site Area (Sq.Ft.): 113,692 Number of Stories: 1 Gross Bldg Area: 25,245 Class: B Net Rentable Area: 25,245 Number of Parking Spaces: 138 Year Built: 2001 Parking Ratio: 5.47:1,000 Last Renovation: N/A Tenancy Type: Single-Tenant Quality: Good Condition: Good SALE INFORMATION Status: Closed Sale OAR: 8.37% Sale Date: 9/2019 NOI: $311,783 Sale Price: $3,725,000 NOI per Sq.Ft.: $12.35 Price per Sq.Ft. $147.55 Occupancy: 100.00% Value Interest: Leased Fee Expense Ratio: N/A Grantor: D&O Whitney Mesa LLC EGIM: N/A Grantee: Richard C Peterson Buying Entity: Investor Financing: N/A No. of Years Remaining on Primary Lease: N/A Condition of Sale: None Investment Grade Credit: N/A Investment Grade Credit Rating: N/A

VERIFICATION COMMENTS COMPS; Public Records 20190924:01980

COMMENTS This property is located on the interior, north side of Whitney Mesa Drive, east of Mountain Vista Street. The subject was a former charter school and office property but was purchased by an office user that now facilitates charter schools.

VALUATION & ADVISORY IMPROVED SALE COMPARABLE 4

Property Name: Office Building Address: 2972 South Rainbow Boulevard City, State, Zip: Las Vegas NV 89146 MSA: Las Vegas County: Clark County Submarket: Property Type: Office Property Subtype: Office Building Classification: N/A ID: 565816 Tax Number(s): 163-11-301-003

PROPERTY INFORMATION Site Area (Acres): 0.82 Number of Buildings: 1 Site Area (Sq.Ft.): 35,719 Number of Stories: 1 Gross Bldg Area: 10,400 Class: B Net Rentable Area: 10,400 Number of Parking Spaces: 40 Year Built: 1992 Parking Ratio: 3.85:1,000 Last Renovation: N/A Tenancy Type: Owner Occupied Quality: Good Condition: Good SALE INFORMATION Status: Closed Sale OAR: N/A Sale Date: 9/2019 NOI: N/A Sale Price: $1,577,000 NOI per Sq.Ft.: N/A Price per Sq.Ft. $151.63 Occupancy: 50.00% Value Interest: Fee Simple Expense Ratio: N/A Grantor: Buy M Gail Trust EGIM: N/A Grantee: Rainb ow Coley LLC Buying Entity: Owner-User Financing: N/A No. of Years Remaining on Primary Lease: N/A Condition of Sale: None Investment Grade Credit: N/A Investment Grade Credit Rating: N/A

VERIFICATION COMMENTS COMPS; Public Records 20190913:03806; Marketing Brochure

COMMENTS This property is located on the east side of Rainbow Boulevard, south of Edna Avenue. The property was 50% leased to a retail/showroom tenant at a rate of $14.63/sf and a lease expiration in March 2022. The buyer will renovate the vacant space at an unknown cost and occupy.

VALUATION & ADVISORY IMPROVED SALE COMPARABLE 5

Property Name: Office Building Address: 786 West Pioneer Boulevard City, State, Zip: Mesquite NV 89027 MSA: Las Vegas County: Clark County Submarket: Property Type: Office Property Subtype: Office Building Classification: N/A ID: 565833 Tax Number(s): 001-17-116-008 and 013

PROPERTY INFORMATION Site Area (Acres): 1.68 Number of Buildings: 1 Site Area (Sq.Ft.): 73,181 Number of Stories: 1 Gross Bldg Area: 17,400 Class: B Net Rentable Area: 17,400 Number of Parking Spaces: 60 Year Built: 2006 Parking Ratio: 3.45:1,000 Last Renovation: N/A Tenancy Type: Multi-Tenant Quality: Good Condition: Good SALE INFORMATION Status: Closed Sale OAR: N/A Sale Date: 5/2019 NOI: N/A Sale Price: $820,000 NOI per Sq.Ft.: N/A Price per Sq.Ft. $47.13 Occupancy: N/A Value Interest: Leased Fee Expense Ratio: N/A Grantor: CRJ Properties LLC EGIM: N/A Grantee: Moyes Mesquite Holdings LLC Buying Entity: Investor Financing: N/A No. of Years Remaining on Primary Lease: N/A Condition of Sale: None Investment Grade Credit: N/A Investment Grade Credit Rating: N/A

VERIFICATION COMMENTS COMPS; Public Records 20190522:01848

COMMENTS This property is located on the south side of Pioneer Boulevard, west of Grapevine Road. The building was reportedly 100% occupied at the time of sale but details could not be confirmed. This building is currently listed for lease with 3 spaces totaling 12,317 square feet and an asking rate of $9.00/sf/NNN.

VALUATION & ADVISORY IMPROVED SALE COMPARABLE 6

Property Name: Office Building Address: 340 Falcon Ridge Parkway Building 400 City, State, Zip: Mesquite NV 89027 MSA: Las Vegas County: Clark County Submarket: Property Type: Office Property Subtype: Office Building Classification: N/A ID: 425978 Tax Number(s): 002-13-510-003

PROPERTY INFORMATION Site Area (Acres): 0.75 Number of Buildings: 1 Site Area (Sq.Ft.): 32,670 Number of Stories: 1 Gross Bldg Area: 7,838 Class: B Net Rentable Area: 7,838 Number of Parking Spaces: 25 Year Built: 2005 Parking Ratio: 3.19:1,000 Last Renovation: N/A Tenancy Type: Multi-Tenant Quality: Good Condition: Good SALE INFORMATION Status: Recorded Sale OAR: 8.25% Deed Reference: NOI: $76,313 Sale Date: 9/2018 NOI per Sq.Ft.: $9.74 Sale Price: $925,000 Occupancy: 75.00% Price per Sq.Ft. $118.01 Expense Ratio: N/A Value Interest: Leased Fee EGIM: N/A Grantor: Decardi-Nelson Investments Inc. Buying Entity: Investor Grantee: Sinner & Saint, LLC No. of Years Remaining on Primary Lease: N/A Financing: N/A Investment Grade Credit: N/A Condition of Sale: None Investment Grade Credit Rating: N/A VERIFICATION COMMENTS LINX Commercial Real Estate/Travis Parry

COMMENTS This is a multi-tenant medical office building that was 75 percent leased at the time of sale. The broker involved in this transaction indicated that the 8.25 percent cap rate was based on actual leases in place. Most of the leases were short-term; however, the existing tenants indicated that they would renew under the new ownership. This building has visibility on Falcon Ridge Parkway.

VALUATION & ADVISORY IMPROVED SALE COMPARABLE 7

Property Name: Multi Tenant Office Building Address: 736 West Pioneer Boulevard City, State, Zip: Mesquite NV 89027 MSA: Las Vegas County: Clark County Submarket: Property Type: Office Property Subtype: N/A Classification: N/A ID: 425944 Tax Number(s): 001-17-116-003

PROPERTY INFORMATION Site Area (Acres): 0.68 Number of Buildings: 1 Site Area (Sq.Ft.): 29,621 Number of Stories: 2 Gross Bldg Area: 10,856 Class: B Net Rentable Area: 10,856 Number of Parking Spaces: 27 Year Built: 2006 Parking Ratio: 2.49:1,000 Last Renovation: N/A Tenancy Type: Multi-Tenant Quality: Good Condition: Good SALE INFORMATION Status: Recorded Sale OAR: 7.00% Deed Reference: 20170309:01613 NOI: $84,000 Sale Date: 3/2017 NOI per Sq.Ft.: $7.74 Sale Price: $1,200,000 Occupancy: 100.00% Price per Sq.Ft. $110.54 Expense Ratio: N/A Value Interest: Leased Fee EGIM: N/A Grantor: Hall Commercial Holdings LLC Buying Entity: Investor Grantee: Pioneer Blvd, LLC No. of Years Remaining on Primary Lease: N/A Financing: N/A Investment Grade Credit: N/A Condition of Sale: None Investment Grade Credit Rating: N/A VERIFICATION COMMENTS RE/MAX Ridge Realty / Cindy Risinger (Buyer)

COMMENTS The property was listed in the open market for approximately eight months at $1,395,000 and it sold at 86 percent of its asking price. At the time of sale, the property was 100 percent leased to three tenants. The reported cap rate was 7.00 percent based in part on the seller receiving a lower range rental rate. The buyer is the selling broker.

VALUATION & ADVISORY ADDENDA CONTENTS

Addendum E: Comparable Lease Data Sheets

CUSHMAN & WAKEFIELD

LEASE COMPARABLE 1

Property Name: Multi Tenant Office Building Address: 760 West Pioneer Boulevard City, State, Zip: Mesquite NV 89027 MSA: Las Vegas County: Clark Submarket: Property Type: Office Property Subtype: Medical Office Classification: N/A ID: 566197 Tax Number(s): 001-17-116-002

PROPERTY INFORMATION Site Area (Acres): 1.06 Number of Buildings: 1 Site Area (Sq.Ft.): 46,174 Number of Stories: 1 Gross Bldg Area: 8,400 Class: B Net Rentable Area: 8,400 Number of Parking Spaces: 32 Year Built: 2006 Parking Ratio: 3.81:1,000 Last Renovation: N/A Tenancy Type: Multi-Tenant Quality: Good Max Floor Plate: N/A Condition: Good LEASE INFORMATION Tenant Name: Local Office Tenant Term (Years): N/A Lease Date: 12/2019 Lease Type: Net Size Leased (Sq.Ft.): 5,891 Reimbursements/SF: N/A Floor: N/A Rent Concessions: N/A Initial Rent/Sq.Ft.: $14.40 TI/SF: N/A Rent Steps: N/A VERIFICATION COMMENTS Costar COMPs

COMMENTS This is an orthodontist space in a dual tenant building. The owner occupies the other space doing business as a dentist.

VALUATION & ADVISORY LEASE COMPARABLE 2

Property Name: Office Building Address: 8290 Arville Street City, State, Zip: Las Vegas NV 89139 MSA: Las Vegas County: Clark Submarket: Property Type: Office Property Subtype: N/A Classification: N/A ID: 531891 Tax Number(s): 177-18-501-001

PROPERTY INFORMATION Site Area (Acres): 2.72 Number of Buildings: 1 Site Area (Sq.Ft.): 118,622 Number of Stories: 2 Gross Bldg Area: 28,748 Class: N/A Net Rentable Area: 28,748 Number of Parking Spaces: 180 Year Built: 2004 Parking Ratio: 6.26:1,000 Last Renovation: N/A Tenancy Type: N/A Quality: Good Max Floor Plate: N/A Condition: Good LEASE INFORMATION Tenant Name: FirstService Residential Term (Years): 5.00 Lease Date: 10/2019 Lease Type: Net Size Leased (Sq.Ft.): 28,748 Reimbursements/SF: N/A Floor: N/A Rent Concessions: 0 Initial Rent/Sq.Ft.: $14.40 TI/SF: $0.00 Rent Steps: 3% annually VERIFICATION COMMENTS Verified with leasing broker, Greg Pancirov

COMMENTS This is the renewal of a lease which will begin in May of 2020. The parcel on which the subject is located is larger (5.09 acres), but the eastern portion (approximately 2.37 acres) is leased to a separate entity. The building broker did not have details on the yard lease.

VALUATION & ADVISORY LEASE COMPARABLE 3

Property Name: Flamingo Professional Center Address: 2080 East Flamingo Road City, State, Zip: Las Vegas NV 89119 MSA: Las Vegas County: Clark Submarket: Property Type: Office Property Subtype: Medical Office Classification: N/A ID: 531893 Tax Number(s): 162-14-815-001

PROPERTY INFORMATION Site Area (Acres): 3.94 Number of Buildings: N/A Site Area (Sq.Ft.): 171,626 Number of Stories: 2 Gross Bldg Area: 113,694 Class: B Net Rentable Area: 113,694 Number of Parking Spaces: 426 Year Built: 1985 Parking Ratio: 3.75:1,000 Last Renovation: N/A Tenancy Type: Multi-Tenant Quality: Average Max Floor Plate: N/A Condition: Average LEASE INFORMATION Tenant Name: State of Nevada Department of Term (Years): 5.00 Education Lease Date: 4/2019 Lease Type: Gross Size Leased (Sq.Ft.): 19,836 Reimbursements/SF: N/A Floor: 2 Rent Concessions: N/A Initial Rent/Sq.Ft.: $17.51 TI/SF: N/A Rent Steps: 3% annually VERIFICATION COMMENTS Verified via marketing brochure rent roll

COMMENTS This property is one of a two-building campus with a parking garage. The two buildings within this center have several government tenants within them, with this being the most recent and largest lease.

VALUATION & ADVISORY LEASE COMPARABLE 4 Property Name: Freestanding Retail Address: 4840 South Eastern Avenue City, State, Zip: Las Vegas NV 89119 MSA: Las Vegas County: Clark Submarket: Property Type: Retail-Commercial Property Subtype: Other (Retail-Commercial) Classification: N/A ID: 532022 Tax Number(s): 162-24-401-008

PROPERTY INFORMATION Site Area (Acres): 1.62 Number of Buildings: 1 Site Area (Sq.Ft.): 70,567 Number of Stories: 1 Gross Bldg Area: 12,911 Number of Parking Spaces: 58 Gross Leasable Area: 12,911 Parking Ratio: 4.49:1,000 Year Built: 1977 L:B Ratio: 5.47 :1 Last Renovation: N/A Tenancy Type: Multi-Tenant Quality: Average Tenancy Type: Multi-Tenant Condition: Average

LEASE INFORMATION Tenant Name: Local Tenant Term (Years): 5.00 Lease Date: 4/2019 Lease Type: Net Size Leased (Sq.Ft.): 12,911 Reimbursements/Sq.Ft.: N/A Floor: N/A Rent Concessions: 3 Initial Rent/SF: $10.20 TI/SF: $5.00 Rent Steps: 2% annually VERIFICATION COMMENTS Broker

COMMENTS This property is located on the east side of Eastern Avenue, north of Tropicana Avenue. The space is box retail in a multi tenant retail property.

VALUATION & ADVISORY LEASE COMPARABLE 5

Property Name: Whitney Mesa Office Plaza Address: 1711 Whitney Mesa Drive City, State, Zip: Henderson NV 89014-2080 MSA: Las Vegas County: Clark Submarket: Property Type: Office Property Subtype: Office Building Classification: Low-Rise ID: 487755 Tax Number(s): 161-32-710-019

PROPERTY INFORMATION Site Area (Acres): 2.61 Number of Buildings: 1 Site Area (Sq.Ft.): 113,692 Number of Stories: 1 Gross Bldg Area: 25,248 Class: B Net Rentable Area: 25,248 Number of Parking Spaces: 72 Year Built: 2001 Parking Ratio: 2.85:1,000 Last Renovation: N/A Tenancy Type: Single-Tenant Quality: Average Max Floor Plate: N/A Condition: Average LEASE INFORMATION Tenant Name: WestCare Foundation, Inc. Term (Years): 3.00 Lease Date: 3/2019 Lease Type: Net Size Leased (Sq.Ft.): 25,248 Reimbursements/SF: N/A Floor: N/A Rent Concessions: N/A Initial Rent/Sq.Ft.: $12.35 TI/SF: N/A Rent Steps: $0.05 per square foot annually VERIFICATION COMMENTS Broker

COMMENTS This property is located on the north side of Whitney Mesa Drive, east of Mountain Vista Street. This is a 3 year renewal. The lease began in 2013 and was a former multi tenant space with a former charter school and alot of open space. The tenant spent $250K to improved for general office.

VALUATION & ADVISORY LEASE COMPARABLE 6

Property Name: Medical Office Address: 754 West Pioneer Boulevard City, State, Zip: Mesquite NV 89027 MSA: Las Vegas County: Clark Submarket: Property Type: Office Property Subtype: Office Building Classification: N/A ID: 566196 Tax Number(s): 001-17-116-006 and 014

PROPERTY INFORMATION Site Area (Acres): 2.15 Number of Buildings: 1 Site Area (Sq.Ft.): 93,654 Number of Stories: 2 Gross Bldg Area: N/A Class: B Net Rentable Area: 25,700 Number of Parking Spaces: 144 Year Built: 2007 Parking Ratio: 5.60:1,000 Last Renovation: N/A Tenancy Type: Multi-Tenant Quality: Good Max Floor Plate: N/A Condition: Good LEASE INFORMATION Tenant Name: Local Office Tenant Term (Years): 5.00 Lease Date: 9/2018 Lease Type: Net Size Leased (Sq.Ft.): 2,800 Reimbursements/SF: $3.00 Floor: N/A Rent Concessions: N/A Initial Rent/Sq.Ft.: $12.00 TI/SF: N/A Rent Steps: N/A VERIFICATION COMMENTS Costar COMPs

COMMENTS This space is general office within a multi tenant office building. The owner does their own leasing. The building is occupied by the owner and 3 other tenant spaces with 2 spaces available. The landlord bought this building in an REO sale in 2019 with high vacancy. Rental rates for the existing tenants when bought were $15/sf/MG.

VALUATION & ADVISORY LEASE COMPARABLE 7

Property Name: Single Tenant Office Building Address: 3065 South Jones Boulevard City, State, Zip: Las Vegas NV 89146 MSA: Las Vegas County: Clark Submarket: Property Type: Office Property Subtype: Office Building Classification: Low-Rise ID: 487742 Tax Number(s): 163-11-708-016

PROPERTY INFORMATION Site Area (Acres): 1.02 Number of Buildings: 1 Site Area (Sq.Ft.): 44,431 Number of Stories: 2 Gross Bldg Area: 18,962 Class: B Net Rentable Area: 18,962 Number of Parking Spaces: 68 Year Built: 2002 Parking Ratio: 3.59:1,000 Last Renovation: N/A Tenancy Type: Single-Tenant Quality: Good Max Floor Plate: N/A Condition: Good LEASE INFORMATION Tenant Name: office tenant Term (Years): 7.00 Lease Date: 9/2018 Lease Type: Net Size Leased (Sq.Ft.): 18,962 Reimbursements/SF: N/A Floor: N/A Rent Concessions: 0 Initial Rent/Sq.Ft.: $15.72 TI/SF: $0.00 Rent Steps: 2% annually VERIFICATION COMMENTS Broker; Marketing Data

COMMENTS This property is located on the west side of Jones Boulevard, north Palmyra Avenue. This tenant expanded into the entire building September, 2018. The tenant has 3 (5) year options to renew.

VALUATION & ADVISORY ADDENDA CONTENTS

Addendum F: Clark County Assessor and Treasurer Data

CUSHMAN & WAKEFIELD

Clark County Real Property Page 1 of 2

GENERAL INFORMATION PARCEL NO. 001-19-501-005 OWNER AND MAILING ADDRESS CITY OF MESQUITE 10 E MESQUITE BLVD MESQUITE NV 89027-4706

LOCATION ADDRESS 840 W HAFEN LN CITY/UNINCORPORATED TOWN MESQUITE ASSESSOR DESCRIPTION PARCEL MAP FILE 82 PAGE 18 LOT 1

RECORDED DOCUMENT NO. * 19990723:01490 RECORDED DATE Jul 23 1999 VESTING NS

*Note: Only documents from September 15, 1999 through present are available for viewing.

ASSESSMENT INFORMATION AND VALUE EXCLUDED FROM PARTIAL ABATEMENT TAX DISTRICT 901 APPRAISAL YEAR 2019 FISCAL YEAR 2020-21 SUPPLEMENTAL IMPROVEMENT VALUE 0 INCREMENTAL LAND 0 INCREMENTAL IMPROVEMENTS 0

REAL PROPERTY ASSESSED VALUE FISCAL YEAR 2019-20 2020-21 LAND 118006 118006 IMPROVEMENTS 0 0 PERSONAL PROPERTY 0 0 EXEMPT 118006 118006 GROSS ASSESSED (SUBTOTAL) 118006 118006 TAXABLE LAND+IMP (SUBTOTAL) 337160 337160 COMMON ELEMENT ALLOCATION ASSD 0 0 TOTAL ASSESSED VALUE 118006 118006 TOTAL TAXABLE VALUE 337160 337160

ESTIMATED LOT SIZE AND APPRAISAL INFORMATION ESTIMATED SIZE 4.93 Acres ORIGINAL CONST. YEAR 1997 LAST SALE PRICE 535661 MONTH/YEAR 5/1997 SALE TYPE M - Multiple-Parcel Sale LAND USE 41.335 - Offices, Professional and Business Services DWELLING UNITS 0

PRIMARY RESIDENTIAL STRUCTURE

http://sandgate.co.clark.nv.us/assrrealprop/ParcelDetail.aspx?hdnParcel=00119501005&hdn... 9/2/2020 Clark County Real Property Page 2 of 2

1ST FLOOR SQ. FT. 0 CASITA SQ. FT. 0 ADDN/CONV

2ND FLOOR SQ. FT. 0 CARPORT SQ. FT. 0 POOL NO

3RD FLOOR SQ. FT. 0 STYLE SPA NO UNFINISHED BASEMENT SQ. FT. 0 BEDROOMS 0 TYPE OF CONSTRUCTION FINISHED BASEMENT SQ. FT. 0 BATHROOMS 0 ROOF TYPE BASEMENT GARAGE SQ. FT. 0 FIREPLACE 0 TOTAL GARAGE SQ. FT. 0

http://sandgate.co.clark.nv.us/assrrealprop/ParcelDetail.aspx?hdnParcel=00119501005&hdn... 9/2/2020 Clark County Assessor Page 1 of 1

Briana Johnson, Assessor

PARCEL OWNERSHIP HISTORY

ASSESSOR DESCRIPTION PARCEL MAP FILE 82 PAGE 18 LOT 1

CURRENT RECORDED RECORDED TAX EST CURRENT OWNER % VESTING COMMENTS PARCEL NO. DOCUMENT NO. DATE DIST SIZE 001-19-501-005 CITY OF MESQUITE 19990723:01490 7/23/1999 NS 901 4.93 AC

RECORDED RECORDED TAX EST PARCEL NO. PRIOR OWNER(S) % DOCUMENT VESTING COMMENTS DATE DIST SIZE NO. CAPSTONE CAPITAL 4.9300 001-19-501-005 19970530:03905 05/30/1997 NS 901 SF 89-17 CORPORATION AC 670-390-023 ARCON-MOAPA VALLEY INC 19960318:00251 03/18/1996 NS 901 4.93 AC SECURITY LAND & LIVESTOCK 670-390-023 19950519:01364 05/19/1995 NS 901 4.93 AC INC JENSEN KELLY BUNDY & KARLA 670-390-023 19950519:01363 05/19/1995 NS 901 4.93 AC JENSEN JEFFREY LYNN & VICKI 670-390-023 REBER CHRISTINE ETAL 19931223:00714 12/23/1993 NS 901 4.93 AC 670-390-019 REBER CHRISTINE ETAL 19931223:00714 12/23/1993 NS 901 19.71 AC JENSEN FAMILY TRUST 670-390-019 19930409:00758 04/09/1993 NS 901 19.71 AC JENSEN MELBURN KENNETH TRS ETAL JENSEN FAMILY TRUST FR 670-390-003,014; 1.18A RD PM 670-390-018 19930409:00758 04/09/1993 NS 901 50.17 AC JENSEN MELBURN KENNETH 77-26; -1.04C TRS ETAL

Click the following link to view the parcel geneology Parcel Tree

Note: Only documents from September 15, 1999 through present are available for viewing.

NOTE: THIS RECORD IS FOR ASSESSMENT USE ONLY. NO LIABILITY IS ASSUMED AS TO THE ACCURACY OF THE DATA DELINEATED HEREON.

http://sandgate.co.clark.nv.us/assrrealprop/ParcelHistory.aspx?instance=pcl2&parcel=00119... 9/2/2020 Ascend Web Inquiry Summary Page Page 1 of 2

Property Account Inquiry - Summary Screen

New Search Recorder Treasurer Assessor Clark County Home

Parcel ID 001-19-501-005 Tax Year 2021 District 901 Rate 2.7737

Situs Address: 840 W HAFEN LN MESQUITE Legal Description: ASSESSOR DESCRIPTION: PARCEL MAP FILE 82 PAGE 18 LOT 1GEOID: MOR NE4 NE4 SEC 19 13 71

Status: Property Characteristics Property Values Property Documents Active Tax Cap Land 118006 99072301490 7/23/1999 6.7 Taxable Increase Pct. Total Assessed Value 118006 Tax Cap Limit 3263.75 Net Assessed Value 118006 Amount Exemption Value New 0 3-35 Offices, Construction Land Use Professional New Construction - and 0 Supp Value Exemption 100 Percentage Tax % Exemption Value 118006 Cap Type OTHER Acreage 4.9300 Exemption 3273.13 Amount 60M: City Exemption Municipal Land Type & Pro Abatement used for tax calc 9.38 only

Role Name Address Since To Owner CITY OF MESQUITE 10 E MESQUITE BLVD , MESQUITE, NV 89027-4706 UNITED STATES 7/1/2002 Current

Summary Item Amount Taxes as Assessed $3,273.13 Less Cap Reduction $0.00 Net Taxes $3,273.13

PAST AND CURRENT CHARGES DUE TODAY Tax Year Charge Category Amount Due Today THERE IS NO PAST OR CURRENT AMOUNT DUE as of 9/2/2020 $0.00

NEXT INSTALLMENT AMOUNTS Tax Year Charge Category Installment Amount Due THERE IS NO NEXT INSTALLMENT AMOUNT DUE as of 9/2/2020

TOTAL AMOUNTS DUE FOR ENTIRE TAX YEAR Tax Year Charge Category Remaining Balance Due THERE IS NO TOTAL AMOUNT DUE FOR THE ENTIRE TAX YEAR as of 9/2/2020

PAYMENT HISTORY Last Payment Amount $0.00

https://trweb.co.clark.nv.us/print_wep2.asp?Parcel=001-19-501-005&DateSelect=9/2/2020 9/2/2020 Ascend Web Inquiry Summary Page Page 2 of 2

Last Payment Date Fiscal Tax Year Payments $0.00 Prior Calendar Year Payments $0.00 Current Calendar Year Payments $0.00

https://trweb.co.clark.nv.us/print_wep2.asp?Parcel=001-19-501-005&DateSelect=9/2/2020 9/2/2020 ADDENDA CONTENTS

Addendum G: Mesquite Veterans Center Lease

CUSHMAN & WAKEFIELD

LEASE AGREEMENT

THIS LEASE AGREEMENT ("Lease") is made by and between MESQUITE VETERANS CENTER, INC., ("LESSEE"), and the CITY OF MESQUITE ("LESSOR"), collectively referred to as ("the Parties"). The Lease is legally effective when signed and dated by the Parties below.

WITNESSETH:

WHEREAS, LESSOR is the owner of real property located at approximately 830 Hafen Lane, currently zoned Public Building (PB), and located Northwest of the existing Arcon Building; and

WHEREAS, LESSEE has expressed interest in leasing the Property for a Mesquite Veterans Center; and

WHEREAS, LESSEE's purpose and mission in operating the Veterans Center is to provide services to Veterans including: hold Veteran group meetings, assist Veterans with benefit issues, and aid Veterans in need; and

WHEREAS, LESSEE is a non-profit entity formed and operating under the provisions of the Internal Revenue Code Section 501(c)(3); and

WHEREAS, the LESSOR may, pursuant to Nevada Revised Statutes Section 268.053, lease property to a non-profit entity for a nominal consideration when such a lease is in the best interest of the public; and

WHEREAS, the lease would be in the best interest of the public.

NOW, THEREFORE, the parties mutually covenant and agree as follows:

Lessor, for and in consideration of the agreements, conditions, covenants and stipulations made by Lessee and Sublessee as hereinafter provided, agrees as follows:

The parties hereto covenant and agree as follows:

1. USE OF PROPERTY. The Property may only be used for facilities and activities directly related to the operation of a Veterans Center (the "Facility"). The Facility may not be used for overnight guests or any type of lodging.

2. COMMENCEMENT DATE. The Lease shall commence on the date the Lease is signed by both parties following City Council approval of this Lease Agreement. LESSEE shall provide sufficient evidence of adequate financial resources, have approved design and construction drawings, and received the required building permit to construct the Facility on the Property within five (5) years of the commencement date. LESSEE shall also commence construction no later than year six (6). Should LESSEE not obtain

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Mesquite Veterans Center, Inc. Lease Agreement 4.30.09 the required building permit within the five (5) year period or construction not commence within the six (6) year period, the LESSOR's obligation to lease the Property to the LESSEE is automatically terminated.

3. TERM. The term of this Lease is fifty (50) years, commencing on the Commencement Date as determined in Item 2 above. There are no extensions provided herein.

4. RENT. The annual lease payment shall be Ten Dollars ($10.00). LESSEE shall also pay a one-time Ten Dollar ($10.00) payment to MMC of Nevada, LLC as consideration for the modification of any existing leases/subleases or amendments between the City of Mesquite and MMC of Nevada, LLC resulting from a lease of the property to LESSEE. As part of the Lease payment, LESSEE agrees to, at LESSEE's expense, maintain and replace the flags located at the Veteran Memorial Park for the term of this Lease.

5. SECURITY DEPOSIT.

(a) LESSEE, contemporaneously with the execution of this Lease, shall deposit with City, the sum of Two Thousand Five Hundred Dollars ($2,500.00), receipt of which is hereby acknowledged by LESSOR, as and for a security deposit (the "Deposit"). Said Deposit shall be held in an interest bearing account as security for the faithful performance by LESSEE of all of the terms, covenants, conditions and obligations of the Lease required to be kept and performed by LESSEE during the term hereof. If at any time during the term of this Lease any of the Rent or any other sum payable hereunder by LESSEE shall be overdue and unpaid, then and in that event, LESSOR may, at the sole option of LESSOR, appropriate and apply any portion of the Deposit to the payment of any such overdue Rent or other sum.

(b) In the event of the failure of LESSEE to keep or perform any of the terms, covenants, conditions and obligations of this Lease to be kept or performed by the LESSEE, then LESSOR, at its option, may appropriate and apply the entire Deposit, or so much thereof as may be necessary, to compensate LESSOR for loss or damage sustained or suffered by LESSOR due to such breach on the part of LESSEE. Should the entire Deposit, or any portion thereof, be appropriated and applied by LESSOR for the payment of overdue Rent or other sums due and payable to LESSOR by LESSEE hereunder, then LESSEE shall, upon the written demand of LESSOR, forthwith remit to LESSOR a sufficient amount in cash or certified funds to restore the Deposit to the original sum deposited. LESSEE's failure to do so within ten (10) days after receipt of such demand shall constitute a breach of this Lease.

(c) Should LESSEE, during the term of this Lease, comply with all of said terms, covenants, conditions and obligations, and promptly pay all of the Rent payable hereunder as each payment falls due, and timely pay all other sums payable by LESSEE to City as required herein, then the Deposit shall be returned in full, together with accrued

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Mesquite Veterans Center, Inc. Lease Agreement 4.30.09 interest, to LESSEE at the end of the term of this Lease, or upon the earlier termination of this Lease.

6. MEMORANDUM OF LEASE. Upon the determination that the Lease is effective, a memorandum of lease shall be recorded in the office of the Clark County Recorder's Office. Upon and thereafter as of the effective date of the Lease, should the Property be subject to real estate property taxes, LESSEE agrees to pay such taxes in accordance with the terms of the Lease Agreement.

7. APPROVALS.

(a) LESSOR agrees that use of the Lease Area is contingent upon its suitability for LESSEE's intended use and ability to obtain all governmental licenses, permits, approval or other relief required of or deemed necessary or appropriate by LESSEE for its use of the Lease Area, including without limitation, applications for zoning variances, zoning ordinances, amendments, special use permits, and construction permits (collectively referred to as "Government Approvals"). LESSOR authorizes LESSEE to prepare, execute and file all required applications to obtain Governmental Approvals necessary under this Agreement and agrees to reasonably assist LESSEE with such applications.

(b) LESSEE has the right to obtain a title report or commitment of a leasehold title policy from a title insurance company of its choice and to have the Property surveyed by a surveyor of its choice. LESSEE may also obtain, at their sole cost and expense, soil boring, percolation, engineering procedures, environmental investigation or other tests or reports (collectively the "Tests") on, over, and under the Property, necessary to determine if LESSEE's use of the Property will be compatible with the LESSEE's engineering specifications, system, design, operations or Governmental Approvals.

(c) The Lease of City-owned property does not constitute an endorsement or approval of any development plans or a commitment or guarantee for sanitary sewer service. Provision of this service is administered pursuant to Title 3 of the Mesquite Municipal Code.

8. CONSTRUCTION OF NEW BUILDINGS.

(a) Plans and Specifications. LESSEE shall, at their sole expense, prepare plans and specifications for LESSE's building to be constructed on the Property. In consideration of available project funding, phasing of construction may be utilized to facilitate the orderly development of the site in accordance with the time parameters set forth herein. All plans and specifications must be submitted to the local governing agencies for approval prior to commencement of construction. LESSEE's building shall resemble in color and finish the existing Arcon Building located on the property.

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Mesquite Veterans Center, Inc. Lease Agreement 4.30.09 (b) Alterations, Improvements and Changes Permitted. LESSEE shall have the right to make such alterations, improvements, and changes to any building that may be constructed on the Property as LESSEE may deem necessary or to comply with local building code requirements. Prior to making any structural alterations, improvements or changes, or the replacement of any building, LESSEE shall obtain LESSOR's written approval of the plans and specifications, in its capacity as landlord, which approval LESSOR shall not unreasonably withhold provided the alterations meet building code and development standards for the City of Mesquite.

9. LIENS. LESSEE shall keep the Property free and clear of all mechanic's, material suppliers' and other liens for or arising out of or in connection with work, labor, services performed or materials or appliances used or furnished for or in connection with the LESSEE's ongoing operations, any alteration, improvement, repairs, addition or construction of building and appurtenances on the Property at any time during the term of the Lease that LESSEE may make, permit or cause to be made, or any work or construction by, for, or permitted by LESSEE on the Property. LESSEE shall promptly and fully discharge, pay or otherwise obtain the release of any item or claim of lien placed against the Property. Further, LESSEE agrees to indemnify and defend City, the Property and the improvements thereon from and against any and all such liens, lien claims or lawsuits to perfect such liens including attorney fees and costs associated with the removal of a lien or the defense against a lien claim.

10. UTILITIES. LESSEE shall be responsible for the payment of all utilities, including but not limited to water, electricity, telephone, cable, sewer, and trash pickup furnished to the Property throughout the term of the Lease.

11. WARRANTIES OF TITLE AND QUIET POSSESSION. LESSOR covenants that LESSOR is seized of the Property in fee simple and has full right to make this Lease, subject only to any existing leases of record on the property with written permission by the lessee of record, and that LESSEE shall have quiet and peaceable (or peaceful) possession of the Property during the term hereof. LESSEE covenants that it will not disturb MMC of Nevada, LLC's quiet and peaceable (or peaceful) possession of the Arcon Building and surrounding parking lots, etc. located on the subject property.

LESSEE acknowledges that LESSOR, its employees, agents, and representatives have made no representations or warranties, written or oral, express or implied, with respect to the Property. LESSEE is relying upon its own expertise and upon its own investigation of the Property with respect to its suitability for LESSEE's intended use. LESSEE shall take possession of the Property AS IS and WITH ALL FAULTS.

12. COMPLIANCE WITH LAWS, PROHIBITION AGAINST WASTE.

(a) During the term of this Lease, LESSEE shall comply with all applicable laws affecting the Property, the breach of which might result in any liability or penalty on LESSOR or forfeiture of LESSOR's title to the Property.

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Mesquite Veterans Center, Inc. Lease Agreement 4.30.09 (b) LESSEE shall not allow waste to accumulate on the Property.

13. ENVIRONMENTAL.

(a) LESSEE shall be responsible for compliance with any and all environmental laws, including any regulations, guidelines, standards, or policies of any governmental authorities regulating or imposing standards of liability or standards of conduct with regard to any environmental condition or other matters as may now or at any time hereafter be in effect, that are now or were related to that party's activity conducted in or on the Property.

(b) LESSEE shall hold harmless and indemnify LESSOR from, and to assume all duties, responsibilities and liabilities at its sole cost and expense (for payment of penalties, sanctions, forfeitures, losses, costs or damages) and for responding to any action, notice, claim, order, summons, citation, directive, litigation, investigation or proceeding which is related to (i) failure to comply with any environmental law, including without limitation any regulations, guidelines, standards or policies of any governmental authorities regulating or imposing standards of liability or standards of conduct with regard to any environmental conditions or matters as may now or hereafter be in effect, and (ii) any environmental conditions that arise out of or are in any way related to the condition of the Property or activities conducted by the party thereon, unless the environmental conditions are caused by the party.

(c) The indemnifications of this paragraph specifically include reasonable costs, expenses and fees incurred in connection with any investigation of Property conditions or any clean-up, remedial, removal or restoration work required by any governmental authority. The provisions of this paragraph will survive the expiration or termination of this Agreement.

14. ENCUMBRANCES ON PROPERTY AND RELATED CONSIDERATION. LESSOR has an existing lease with MMC of Nevada, LLC ("MMC") for the lease of a building on the property known as the Arcon Building as well as the area located by the building for parking and other purposes. MMC has executed a Letter of Understanding, dated April 20, 2009, agreeing that LESSOR may lease the unused property located near the helipad on the grounds outside of the Arcon Building to LESSEE for the purpose of a Veterans Center. In consideration of MMC's granting LESSOR permission to lease the unused property located near the helipad to LESSEE, LESSEE shall pay MMC a one-time Ten Dollar ($10.00) payment.

15. CITY'S RIGHT OF ENTRY. LESSOR, its employees, agents, contractors, and designees retain the right to enter onto the Property at all reasonable times for the purpose of insuring compliance with the conditions of this Lease.

16. RESTRICTIONS AGAINST ASSIGNMENT OR SUBLET. LESSEE shall not assign or sublet, or attempt to assign or sublet, its interest in the whole or any part of the Property, without the prior written consent of LESSOR. LESSEE shall not

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Mesquite Veterans Center, Inc. Lease Agreement 4.30.09 use or attempt to use the Property for any purpose not authorized herein without the prior written consent of LESSOR. If an assignment, subletting or use occurs which LESSOR has not consented to, the Lease shall thereupon automatically terminate without the necessity of any action by LESSOR.

17. INDEMNIFICATION OF CITY; INSURANCE. LESSOR shall not be liable for any loss, injury, death, or damage to persons or property which may at any time be suffered by LESSEE or by any person who may at any time be using, occupying or visiting the Property or be in, on, or about the Property, whether the loss, injury, death, or damage shall be caused by or in any way result from or arise out of any act, omission, or negligence of LESSEE or of any occupant, visitor, or use of any portion of the Property, or shall result from or be caused by any other matter or thing whether of the same kind as or of a different kind than the matters or things set forth above. LESSEE shall indemnify and defend LESSOR and save it harmless for and against any and all claims, actions, liability, loss, or damage on account of any such loss, injury, death, or damage. LESSEE hereby expressly waives all claims against LESSOR for damages to the improvements on the Property and to the property of LESSEE in, on, or about the Property, and for injuries to persons or property in or about the Property, from any cause arising at any time during the term of this Lease. The two preceding sentences shall not apply to loss, injury, death, or damage arising by reason of the negligence or misconduct of LESSOR, its agents, or employees. This Agreement is made for the benefit of the parties hereto, and to no others.

LESSEE shall, during the entire term of the lease, keep in full force and effect a policy of commercial, general liability to include personal injury and property damage in the amount of Two Million Dollars ($2,000,000.00). The policy shall name LESSOR as an additional insured. During the construction of any building on the Property, LESSEE shall maintain Builder Risk Insurance coverage for the term of the construction in amounts equal to the value of the improvements being constructed.

18. DISPOSITION OF IMPROVEMENTS ON TERMINATION OF LEASE. At the termination of the Lease, all buildings and other improvements of any kind made to the Property shall become the property of LESSOR. LESSOR shall make the sole determination whether any improvements will be removed, restored, sold, leased, or allowed to remain in place or any combination thereof.

If, at any time during this Lease, LESSEE, its agents or managers fail to operate the facilities as a Veteran Center or no longer can support the operation of the Facility, LESSOR shall have the right to immediately terminate the Lease and seek another public or private non-profit organization that meets the requirements of Nevada Revised Statutes 268.053, to occupy the premises and fulfill the terms and conditions of this Lease. If that effort fails, LESSOR shall have the sole right to lease, sell, utilize, or otherwise dispose of the property and all buildings and improvements thereon as determined by its City Council.

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Mesquite Veterans Center, Inc. Lease Agreement 4.30.09 19. REPAIRS AND DESTRUCTION TO IMPROVEMENTS.

(a) Maintenance of improvements. LESSEE shall, throughout the term of this Lease, at its own cost and without any expense to LESSOR, keep, and maintain the Property, including all improvements of every kind that may be a part of the Property and all appurtenances to the Property, in good, sanitary, and neat order, condition, and repair, reasonable wear and tear excepted, and except as specifically provided in this Lease, restore and rehabilitate any improvements of any kind that may be destroyed or damaged by fire, casualty, or any other cause whatsoever.

(b) No obligation by LESSOR to make improvements. LESSOR shall not be obligated to make any repairs, replacements, or renewals of any kind, nature, or description whatsoever to the Property or any buildings or improvements on the Property.

(c) LESSEE's compliance with laws. LESSEE shall comply with and abide by all federal, state, county, municipal, and other governmental statutes, ordinances, laws, and regulations affecting the Property, the improvements thereon or any activity or condition on or in the Property.

(d) Damage to and destruction of improvements. The damage, destruction, or partial destruction of any improvement that is a part of the Property shall not release LESSEE from any obligation under the Lease. In case of damage to or destruction of any such improvements, LESSEE shall, at its own expense, promptly repair and restore the improvement to a condition as good or better than that which existed prior to the damage or destruction unless the parties hereto agree otherwise in writing. Without limiting the obligation of LESSEE, it is agreed that the proceeds of any insurance covering damage or destruction shall be made available to LESSEE for repair or replacement.

20. Notices. Any notice, demand or communication required, permitted, or desired to be given hereunder shall be deemed effectively given when personally delivered, when received by receipted overnight courier, or five (5) days after being deposited in the United States mail, with postage prepaid thereon, certified or registered mail, return receipt requested, addressed as follows:

If to Lessor: City of Mesquite 10 East Mesquite Boulevard Mesquite, Nevada 89027 Attention: City Manager

With Copy To: City of Mesquite 10 East Mesquite Boulevard Mesquite, Nevada 89027 Attention: City Attorney If to Lessee: Mesquite Veterans Center, Inc. Page 7 of 8

Mesquite Veterans Center, Inc. Lease Agreement 4.30.09 P.O. Box 2431 Mesquite, Nevada 89024-2431 Attention: James P. Brown, President

IN WITNESS WHEREOF the parties hereto have executed this Lease Agreement on the day and year as dated below.

LESSOR: LESSEE: CITY OF/MESQUITE MESQUITE VETERANS CENTER, INC.

:,0) e/2 By: Susan M. Holecheck, Mayor Jaips P. Brown, President

ATTE /illgazy)na Sheree Goasman, Interim,City Clerk

APPROVED AS TO FORM: , By: Tru A - BY. if—ta1 Cheryl T it City Attorney By: Trustee

City of Mesquite APPROVED 'APR 2 8 Z009

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Mesquite Veterans Center, Inc. Lease Agreement 4.30.09 Mesquite City Clerk's Office Sheree Goessman, Interim City Clerk noessman(atmesquitenv.gov 10 East Mesquite Blvd. Mesquite, Nevada 89027 w.mesuuitenv.gov

CITY OF MESQUITE

May 6, 2009

Mesquite Veterans Center Inc. Attn: James P. Brown, President PO Box 2431 Mesquite, NV 89024-2431

RE: LEASE AGREEMENT

The Mesquite City Council approved the above reference agreement at the April 28, 2009 City Council Meeting. Enclosed is one (1) original of the above referenced agreement for your records.

If you have any questions, please contact me at (702) 346-5295

Sincerely,

Sheree Goessman, C Interim City Clerk

:sg

Enclosure ADDENDA CONTENTS

Addendum H: Southern Nevada Health District Lease

CUSHMAN & WAKEFIELD

Addendum I: Declaration of Restrictions

ADDENDA CONTENTS

Addendum J: Qualifications of the Appraiser

CUSHMAN & WAKEFIELD

Petra Latch, MAI Executive Director Valuation & Advisory Cushman & Wakefield of Nevada, Inc.

Professional Expertise Petra E. Latch, MAI was the owner of Criterion Group before recently joining the Cushman & Wakefield in 2019. She has been in the commercial real estate appraisal field since 1999, providing consultation, appraisals and appraisal related services for a wide variety of commercial real estate related clients. Ms. Latch’s experience is in the appraisal of residential, commercial, industrial, and investment grade properties for financing, sale or purchase, development, negotiation, allocation of purchase price, ad valorem purposes, and internal planning purposes. Property types considered have included vacant land, mixed use retail, strip and neighborhood shopping centers, garden-style and major office projects, light and heavy industrial facilities, hotels, apartment projects, subdivision, mixed used developments, education and research/development projects. Ms. Latch is also available for litigation consultation and going concern values on a project specific basis. In addition to providing appraisal services, Ms. Latch has been committed to serving in various positions on local Appraisal Institute and real estate industry boards. She taught the real estate valuation course at the UNLV Lee School of Business for 5 years and began service in 2018 on the Clark County Board of Equalization. She is committed to education within the real estate field and is currently developing course content for real estate continuing education credits. Professional Affiliations and Education  State of Nevada Certified General Appraiser - #A.0004239-CG  MAI Designation, Appraisal Institute - Certificate - #12438  Adviser in Appraisal Institute Candidate Adviser Program  Past President and VP, Las Vegas Chapter of Appraisal Institute (2013/2014)  Instructor RE-333, Real Estate Valuation, UNLV Lee Business School - 2014 - 2018  Member of Commercial Alliance of Las Vegas; Treasurer 2019 fiscal year  Member of CCIM and CREW  Candidate for CCIM Designation - Anticipated Completion 2020  Clark County Board of Equalization - 2018 to present

 Bachelor of Science, University of St. Francis, Joliet, Illinois  Associates Degree, University of Nevada Las Vegas Appraisal and Advanced Education Courses (summary – not inclusive of all education)

Appraisal Principles and Procedures Report Writing and Valuation Analysis Standards of Professional Practice - Part A Nevada State Law and B Fundamentals of Separating Real, Basic and Advanced Income Capitalization Personal Property, and Intangible Assets General and Advanced Applications Analyzing Distressed Real Estate Valuation Analysis and Report Writing Appraising Convenience Stores Market Analysis and Highest and Best Use Appraising Small Hotel Properties Advanced Sales Comparison and Cost CCIM - Courses 101-104 Approaches

NEVADA