75D - PH - ACQUISITION 1922 AND 2002 W 5TH ST

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Extraordinary Assumptions and Hypothetical Conditions The value conclusions are subject to the following extraordinary assumptions that may affect the assignment results. An extraordinary assumption is uncertain information accepted as fact. If the assumption is found to be false as of the effective date of the appraisal, we reserve the right to modify our value conclusions. 1. Our date of value corresponds with the date of completion of our analysis. Our appraisal assumes that the condition of the subject property is the same on our date of value as on our date of inspection. 2. We have reviewed a Limited Phase II Environmental Site Assessment report prepared by Eco & Associates, Inc., dated Aug 16, 2016. This report indicates the presence of soil with elevated diesel and/or lead concentrations which are considered a potential threat to human health. Prior to development, it is reccommended that the impacted soils within the site be excavated and transported offsite to an appropriate disposal facility in a manner conducted in accordance with a formal remedial action plan and a health and safety plan. A subsequent cost estimate was prepared by Eco & Associates, Inc. and presented In a letter based on the findings of the Phase II report. This letter is included in the addenda of our report and the estimated mitigation costs are incorporated into the value conclusion in this analysis. We assume that the findings in these documents are complete and accurate and that such mitigation would be required prior to any sale of the site consistent with the concluded highest and best use. 3. The legal description of the subject, per litigation guarantee documents dated February 22, 2016, indicates a larger parcel area that is not consistent and smaller than the indicated area of the subject on the County Assessor's map. The Assessor's map indication is the same as that of the survey map linked within the litigation guarantees and the area indicated by measurements from aerial imagery and the site inspection. In this analysis, we therefore rely on the indicated area in the County Assessor's map as it is supported by multiple other sources and appears to be the most credible indication of area. The litigation guarantee also indicates a rail spur easement on the subject in a survey map dated 1959. This spur easement appears to be vacated and the current tenant has full use of the two APNs indicated on the County Assessor's map that are defined as the larger parcel, 007-100-04 and 05. As such, we assume the spur is vacated and the area of the larger parcel is equal to the 82,565 square foot area indicated on the County Assessor's map. 4. Section 1263.330 of the California Code of Civil Procedure requires the appraiser to not consider any effect on the value of the property from the project, the eminent domain proceeding, or any preliminary actions of the acquiring agency. The appraisers investigated the real estate market for any influence these issues may have had in the market data selected and analyzed and could not find any. Therefore we have prepared the appraisal analysis of the subject property under the extraordinary assumption that these activities have no effect on the value condusions stated in this appraisal report. The value conclusions are based on the following hypothetical conditions that may affect the assignment results. A hypothetical condition is a condition contrary to known fact on the effective date of the appraisal but is supposed for the purpose of analysis. 1. None. 75D-17