APPRAISAL REPORT OF 9515 COMMUNITY ROAD & 9539 GREENMEADOW ROAD WINDHAM, PORTAGE COUNTY, OHIO 44288 RIMS #19-000366-01-01 as of June 12, 2019 FOR Andrew Bowers Silver Hill Funding 4425 Ponce de Leon Boulevard, 4th Floor Coral Gables, FL 33146 US Realty Consultants, Inc. 2154 East Main Street, Suite 302, Columbus, Ohio 43209 614-221-9494 (p) 614-221-9941 (f) www.usrc.com Columbus Chicago West Palm Beach Cincinnati Dallas Washington, DC June 20, 2019 Andrew Bowers Silver Hill Funding 4425 Ponce de Leon Boulevard, 4th Floor Coral Gables, FL 33146 RE: RIMS #19-000366-01-01 9515 Community Road & 9539 Greenmeadow Road Windham, Ohio Dear Mr. Bowers: In accordance with the engagement letter dated May 22, 2019, we have appraised the property captioned above. The purpose of this appraisal is to express an opinion of the market value of the property for asset valuation. The client and intended user is Silver Hill Funding. The legal interest appraised is the fee simple estate. The effective date of the value opinion is June 12, 2019. The appraisal is based on market conditions observed as of the current date of our market research, June 12, 2019. The subject is located in Windham, Ohio. Improvements consist of a two-story, 12-unit apartment complex. A more complete description of the property is included within the appraisal report. The report also presents other information considered in our analyses, and the reasoning behind our value conclusions. Your attention is called to the standard conditions and extraordinary assumptions, which follow. Market Value Subject to all conditions and explanations contained in this report, and based on our analyses of the subject and the market, together with our experience and knowledge acquired in appraising similar properties, it is our opinion that the market value of the fee simple estate in the 12-unit subject (including the contributory value of the existing furniture, fixtures, and equipment), expressed in terms of financial arrangements equivalent to cash, as of June 12, 2019, is: FOUR HUNDRED TEN THOUSAND DOLLARS $410,000 US Realty Consultants, Inc. 2154 East Main Street, Suite 302, Columbus, Ohio 43209 614-221-9494 (p) 614-221-9941 (f) www.usrc.com Columbus Chicago West Palm Beach Cincinnati Dallas Washington, DC Andrew Bowers June 20, 2019 Page Two Contributory Value of the Furniture, Fixtures, and Equipment The final opinion of value stated above includes the estimated contributory value of the furniture, fixtures, and equipment (FF&E). Based on our analysis, the contributory value of the FF&E, as of June 12, 2019 is $16,000 [$2,000 per unit x 12 units) * ((15-5)/15), rounded]. This report and its contents are intended solely for your information and assistance for the function stated above, and should not be relied on for any other purpose. Neither our report nor any of its contents nor any reference to the appraisers, U S REALTY CONSULTANTS, INC., may be included or quoted in any document, offering circular or registration statement, prospectus, sales brochure, other appraisal, or other document without U S REALTY CONSULTANTS, INC.'s prior written approval of the form and context in which it appears. This report has been conducted in conformance with Title XI of the Federal Financial Institutions Reform, Recovery and Enforcement Act of 1989 and 1994 (FIRREA), and the Uniform Standards of Professional Appraisal Practice (USPAP) of the Appraisal Foundation. We appreciate the opportunity to be of service to your organization and look forward to working with you again. Respectfully submitted, U S REALTY CONSULTANTS, INC. Stephen P. Faherty, MAI James A. Piwarun Principal and Managing Director Senior Associate 9515 COMMUNITY ROAD & 9539 GREENMEADOW ROAD TABLE OF CONTENTS ASSUMPTIONS............................................................................................................................ 6 EXECUTIVE SUMMARY .......................................................................................................... 9 INTRODUCTION....................................................................................................................... 10 PROPERTY IDENTIFICATION ......................................................................................... 10 PURPOSE AND INTENDED USE OF THE APPRAISAL ............................................... 10 LEGAL INTEREST APPRAISED ....................................................................................... 10 EFFECTIVE DATE OF VALUATION................................................................................ 10 DEFINITION OF VALUE..................................................................................................... 11 EXPOSURE TIME AND MARKETING PERIOD ............................................................ 11 APPRAISAL DEVELOPMENT AND REPORTING PROCESS..................................... 12 HISTORY OF THE SUBJECT ............................................................................................. 14 COMPETENCY OF THE APPRAISERS............................................................................ 14 DESCRIPTIVE DATA............................................................................................................... 15 REGIONAL ANALYSIS ....................................................................................................... 15 NEIGHBORHOOD ANALYSIS ........................................................................................... 21 DESCRIPTION OF THE SITE............................................................................................. 23 DESCRIPTION OF THE IMPROVEMENTS .................................................................... 26 APARTMENT MARKET ANALYSIS..................................................................................... 31 COMPARABLE RENTALS...................................................................................................... 36 MARKET RENT ANALYSIS ............................................................................................... 43 HIGHEST AND BEST USE ...................................................................................................... 45 INCOME CAPITALIZATION APPROACH.......................................................................... 48 REVENUE ANALYSIS.......................................................................................................... 48 EXPENSE ANALYSIS........................................................................................................... 49 DIRECT CAPITALIZATION ANALYSIS ......................................................................... 52 SALES COMPARISON APPROACH ..................................................................................... 55 MARKET SALES DATA....................................................................................................... 55 PHYSICAL UNITS OF COMPARISON ............................................................................. 61 RECONCILIATION .................................................................................................................. 63 CERTIFICATION...................................................................................................................... 64 INSURABLE REPLACEMENT COSTS................................................................................. 65 ADDENDUM Engagement Letter ........................................................................................ Addenda I Rent Roll......................................................................................................... Addenda II State of Ohio Appraiser License...................................................................Addenda III Qualifications ................................................................................................. Addenda IV 6 ASSUMPTIONS The following Standard Conditions apply to real estate appraisals by U S REALTY CONSULTANTS, INC. Extraordinary assumptions are added as required. Appraisals are performed and written reports are prepared by, or under the supervision of, members of the Appraisal Institute in accordance with the Institute's Standards of Professional Practice and Code of Professional Ethics. No opinion is rendered as to property title, which is assumed to be good and marketable. Unless otherwise stated, no consideration is given to liens or encumbrances against the property. Sketches, maps, photos, or other graphic aids included in appraisal reports are intended to assist the reader in ready identification and visualization of the property and are not intended for technical purposes. Appraisal reports may contain prospective financial information, estimates, or opinions to represent the appraisers' view of reasonable expectations at a particular point in time, but such information, estimates, or opinions are not offered as predictions or as assurances that a particular level of income or profit will be achieved, that events will occur, or that a particular price will be offered or accepted. Actual results achieved during the period covered by our prospective financial analyses will vary from those described in our report, and the variations may be material. It is assumed that legal, engineering, or other professional advice, as may be required, has been or will be obtained from professional sources and that the appraisal report will not be used for guidance in legal or technical matters such as, but not limited to, the existence of encroachments or easements or other