CBRE VALUATION & ADVISORY SERVICES APPRAISAL REPORT PROPOSED EMERY VILLAGE APARTMENTS 174 EMERY AVENUE NORTHWEST CONCORD, NORTH CAROLINA 28104 CBRE FILE NO. 21-341SE-4034-1 EAGLE I PROPERTY GROUP © 2021 CBRE, Inc. VALUATION & ADVISORY SERVICES 201 South College Street, Suite 1700 Charlotte, NC 28244 T (704) 376-7979 F (704) 331-1259 www.cbre.com Date of Report: May 26, 2021 Mr. Sushanth Charabuddi EAGLE I PROPERTY GROUP One Boston Place, Suite 2600 Boston, Massachusetts 02108 RE: Appraisal of: Proposed Emery Village Apartments 174 Emery Avenue Northwest Concord, Cabarrus County, North Carolina 28104 CBRE, Inc. File No. 21-341SE-4034-1 Dear Mr. Charabuddi: At your request and authorization, CBRE, Inc. has prepared an appraisal of the market value of the referenced property. Our analysis is presented in the following Appraisal Report. The subject is an under construction 132-unit multi-family garden property located at 174 Emery Avenue Northwest in Concord, North Carolina. The property will consist of 4, three-story apartment buildings along with a clubhouse and pumphouse. The improvements will be situated on an 8.612-acre site. Site work commenced in December 2019 but was placed on hold due to Covid-19. Site work resumed in April 2021 and as of the date of our inspection the following work has been complete: asphalt roads and curbs, foundations for two of the four buildings, and 1st floor framing on one residential building. The first units are expected to be delivered in December 2021 with final completion slated for April 2022. The subject is under construction and is not stabilized, therefore, a prospective value upon completion of construction and upon stabilization have been estimated. Based on the analysis contained in the following report, the market value of the subject is concluded as follows: MARKET VALUE CONCLUSION Appraisal Premise Interest Appraised Date of Value Value Conclusion As Is - Market Value Fee Simple Estate May 20, 2021 $8,100,000 Prospective As Complete - Market Value Leased Fee Interest April 20, 2022 $19,100,000 Prospective As Stabilized - Market Value Leased Fee Interest September 20, 2022 $19,500,000 Compiled by CBRE © 2021 CBRE, Inc. May 26, 2021 Page 2 The report, in its entirety, including all assumptions and limiting conditions, is an integral part of, and inseparable from, this letter. The following appraisal sets forth the most pertinent data gathered, the techniques employed, and the reasoning leading to the opinion of value. The analyses, opinions and conclusions were developed based on, and this report has been prepared in conformance with, the guidelines and recommendations set forth in the Uniform Standards of Professional Appraisal Practice (USPAP), and the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. It also conforms to Title XI Regulations and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) updated in 1994 and further updated by the Interagency Appraisal and Evaluation Guidelines promulgated in 2010. The intended use and user of our report are specifically identified in our report as agreed upon in our contract for services and/or reliance language found in the report. As a condition to being granted the status of an intended user, any intended user who has not entered into a written agreement with CBRE in connection with its use of our report agrees to be bound by the terms and conditions of the agreement between CBRE and the client who ordered the report. No other use or user of the report is permitted by any other party for any other purpose. Dissemination of this report by any party to any non-intended users does not extend reliance to any such party, and CBRE will not be responsible for any unauthorized use of or reliance upon the report, its conclusions or contents (or any portion thereof). It has been a pleasure to assist you in this assignment. If you have any questions concerning the analysis, or if CBRE can be of further service, please contact us. Respectfully submitted, CBRE - VALUATION & ADVISORY SERVICES Benjamin Tedder, MAI Don Poore, MAI Director Managing Director Certified General – A6351 Certified General – A1084 Phone: (704) 331-1259 Phone: (704) 331-1259 Email: [email protected] Email: [email protected] ii Proposed Emery Village Apartments, Concord, North Carolina © 2021 CBRE, Inc. May 26, 2021 Page 2 Andrew J. Loepprich Valuation Associate North Carolina Registered Trainee T6243 Phone: (704) 264-3648 Email: [email protected] iii Proposed Emery Village Apartments, Concord, North Carolina © 2021 CBRE, Inc. Certification Certification We certify to the best of our knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. 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. 3. We have no present or prospective interest in or bias with respect to the property that is the subject of this report and have no personal interest in or bias with respect to the parties involved with this assignment. 4. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. 5. 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. 6. This appraisal assignment was not based upon a requested minimum valuation, a specific valuation, or the approval of a loan. 7. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, as well as the requirements of the State of North Carolina. 8. 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 and Standards of Professional Appraisal Practice of the Appraisal Institute. 9. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 10. As of the date of this report, Benjamin Tedder, MAI and Don Poore, MAI have completed the continuing education program for Designated Members of the Appraisal Institute. 11. As of the date of this report, Andrew J. Loepprich has completed the Standards and Ethics Education Requirements for Candidates/Practicing Affiliates of the Appraisal Institute. 12. Benjamin Tedder, MAI and Andrew J. Loepprich have and Don Poore, MAI has not made a personal inspection of the property that is the subject of this report. 13. Andrew J. Loepprich, North Carolina Registered Trainee #6243, provided significant professional appraisal assistance in the preparation of this report. He developed market and neighborhood descriptions, and collected and analyzed subject information necessary for the development of the valuation approaches and report narrative. All work was supervised and reviewed by Benjamin D. Tedder, MAI. 14. Valuation & Advisory Services operates as an independent economic entity within CBRE, Inc. Although employees of other CBRE, Inc. divisions may be contacted as a part of our routine market research investigations, absolute client confidentiality and privacy were maintained at all times with regard to this assignment without conflict of interest. 15. Benjamin Tedder, MAI, Don Poore, MAI, and Andrew J. Loepprich have provided services, as an appraiser most recently in June 2020, regarding the property that is the subject of this report within the three-year period immediately preceding agreement to perform this assignment. i Proposed Emery Village Apartments, Concord, North Carolina © 2021 CBRE, Inc. Certification Benjamin Tedder, MAI Don Poore, MAI Certified General – A6351 Certified General – A1084 Andrew J. Loepprich Registered Trainee – T6243 ii Proposed Emery Village Apartments, Concord, North Carolina © 2021 CBRE, Inc. Subject Photographs Subject Photographs Subject Subject Aerial View iii Proposed Emery Village Apartments, Concord, North Carolina © 2021 CBRE, Inc. Subject Photographs View of Site View of Site View of Site View of Site View of Site Street Frontage iv Proposed Emery Village Apartments, Concord, North Carolina © 2021 CBRE, Inc. Executive Summary Executive Summary Property Name Emery Village Apartments Location 174 Emery Avenue Northwest Concord, Cabarrus County, NC 28104 Parcel Number(s) 56118939950000 Client Eagle I Property Group Client Reference Number Highest and Best Use As If Vacant Multifamily As Improved Multifamily Property Rights Appraised Fee Simple Estate Date of Inspection May 20, 2021 Estimated Exposure Time 3 - 6 Months Estimated Marketing Time 3 - 6 Months Primary Land Area 8.61 AC 375,139 SF Zoning RC, Residential Compact Improvements Comments Property Type Multifamily (Multi-Family Garden) Number of Residential Buildings 4 Number of Residential Stories 3 Gross Building Area 113,776 SF Net Rentable Area 104,904 SF Number of Units 132 Average Unit Size 795 SF Year Built 2022 Effective Age 0 Years Remaining Economic Life 50 Years Condition Excellent Buyer Profile Institutional Financial Indicators Estimated Occupancy at Completion