354 Park

354 PARK STREET

Broker Opinion of Value | June 2021

June 8, 2021

ALSCO INC 505 E 200 SOUTH SUITE 101 SALT LAKE CITY, UT 84102-2053

Re: 354 Park Street, Jacksonville, FL (herein “Property”)

ALSCO Inc (“Client”) has requested that Cushman & Wakefield of Florida, LLC (“C&W”) provide Client, with an opinion (“Broker Opinion of Value”) concerning the appropriate asking price for the Property for your internal purposes only . It is understood that the Broker Opinion of Value will be one of a number of factors which Client will consider in arriving at Client’s asking price. THE BROKER OPINION OF VALUE IS AN OPINION OF VALUE OR A COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. THE BROKER OPINION OF VALUE WILL BE PREPARED BY A LICENSED REAL ESTATE BROKER OR SALESPERSON OR ASSOCIATE BROKER, NOT A LICENSED APPRAISER. In making any decision that relies upon the Broker Opinion of Value, Client should know that C&W has not followed the guidelines for development of an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation. The Broker Opinion of Value will be based upon C&W’s general knowledge of the marketplace as real estate brokers and should not be relied upon as a real estate appraisal prepared by professional appraisers. Without limiting the generality of the foregoing, it is understood that the Broker Opinion of Value will not be used for purposes of obtaining financing, mortgage loan, or any other transaction. This opinion is intended solely for your internal use. It is understood that Client will not disclose this letter, the Broker Opinion of Value or the source of the opinion to any other party without C&W’s prior written consent. In the event that Client provides a copy of the Broker Opinion of Value to, or permits reliance thereon by, any person or entity not authorized by C&W in writing to use or rely thereon, Client hereby agrees to indemnify, defend and hold C&W, its affiliates and the 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 Broker Opinion of Value by any such unauthorized person or entity. C&W disclaims any and all liability to any person or party not authorized by C&W in writing to use or rely on the Broker Opinion of Value, and use thereof by such third parties shall be solely at Clients’ risk.

Sincerely, CUSHMAN & WAKEFIELD OF FLORIDA, LLC

Jacob Horsley Senior Director

Joseph Lentz

Director

TABLE OF CONTENTS

1 PROPERTY MAPS 2 JACKSONVILLE MARKET INFO 3 INDUSTRIAL / MULTI-FAMILY VALUATION

1 PROPERTY MAPS

PROPERTY AERIAL

4

1

3

5

2

PROPERTY HIGHLIGHTS

4)340 CHELSEA ST • Land: 0.13 Acres / 5,627 SF • Parcel ID: 089278-0000 • Building: 2,080 SF 5)0 PRICE ST • Land: 0.22 Acres / • 10,890 SF • Parcel ID: 089273-0000

2)0 CHELSEA ST • Land: 0.09 Acres / • 5,227 SF • Parcel ID: 089274-0000 3)344CHELSEA ST • Land: 0.1Acres / • 4,356 SF • Parcel ID: 089275 0000

1)354 PARK ST • Land: 1.89 Acres / 82,370 SF • Parcel ID: 089264-0010 • Building: 55,578 SF

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LOCAL AREA MAP

BLACK KNIGHT

FLORIDA BLUE

FIDELITY NATIONAL FINANCIAL

GATE GAS

BURLOCK AND BAR REL DISTILL -

RIVERSIDE FOOD HALL (PROPOSED)

TIAA

220 RIVERSIDE APARTMENTS

EXTRA SPACE STORAGE

FIS HEADQUARTERS (UNDER CONSTRUCTION)

YMCA

654 PARK ST

RAYMOND JAMES

VISTA BROOKLYN (UNDER CONSTRUCTION)

FRESH MARKET FIRSTWATCH NAVY FEDERAL BURGER-FI

HASKELL BUILDING

THE BROOKLYN RIVERSIDE APARTMENTS

PRIME OSBOURNE CENTER

BURRITO GALLERY

CHIPOTLE DRYBAR ZOES MAYDAY

TIMES UNION

FEDERAL RESERVE BANK

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2 JACKSONVILLE MARKET INFO

JACKSONVILLE STATISTICS

LABOR POOL & TALENT

BUSINESS ENVIRONMENT

WORK/LIFE BALANCE

• World class beaches and the St. Johns River • Top rated golf courses including the PGA tournament • Professional football and several minor league sports teams • 23 national, state and local parks that take people to the beaches, marshes and area wetlands

• Diversified economy • Cost-friendly location for business • Business friendly regulatory environment • Top 20 Port in the U.S. with operations spread over three separate facilities

• Population growth in 2020 was almost double the national average • Jacksonville has a strong pipeline of skilled tech workforce with more than 13,000 IT graduates each year • 150,000 students in a 100 mile radius • Home to four military bases and a strong pipeline of talent

• Cost of living half of larger gateway markets • Median home price is 58% less than the national average • No state income tax • Low corporate tax rate AFFORDABILITY & HOUSING

POPULATION GROWTH 7.0% 5-YEAR 2020-25

AVERAGE INCOME $85,500

C l

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t y

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BACHELOR OR HIGHER 24.1%

a s

LABOR FORCE 980,000

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t y 2020 JACKSONVILLE TOTAL POPULATION 1.6 MILLION

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J o h n s C

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POPULATION AGE 20-34 20.6%

RENTER OCCUPIED HOUSING 35.4%

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CENTRAL BUSINESS DISTRICT

BY THE NUMBERS

4:1 RESIDENTS RENT 82.7% RENTER OCCUPIED 72.9% NON FAMILY HOUSEHOLDS MORE THAN HALF ARE BETWEEN 25-54 YEARS OLD

3 FORTUNE 500

COMPANIES CORPORATE HEADQUARTERS

$6.5 BILLION IN PROPOSED DEVELOPMENT PROJECTS

$820 MILLION INVESTED IN INFRASTRUCTURE

DOWNTOWN POPULATION

8,500 RESIDENTS

56,000 DOWNTOWN EMPLOYEES

SPORTING EVENTS

ART EVENTS ART IN PUBLIC PLACES FIRST WEDNESDAY ART WALK HOME TO ONE OF FLORIDA’S THREE FULL-TIME SYMPHONIES

8 PROFESSIONAL SPORTS TEAMS INCLUDING 1 NFL TEAM

2 MAJOR GOLF TOURNAMENTS & 2 MAJOR COLLEGE FOOTBALL GAMES

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JACKSONVILLE MULTI-FAMILY

12 Mo. Delivered Units

12 Mo. Absorption Units

12 Mo. Asking Rent Growth

Vacancy Rate

3,312

5,346 6.0% 11.9%

OVERVIEW

Apartment development has been elevated in Jacksonville in the past three years, which has led to increasing vacancies leading up to the economic downturn. Since the onset of the pandemic, demand has accelerated while ground breakings have remained flat, allowing vacancies to compress. But, if groundbreakings start to increase once again in this easy-to-build metro, vacancies could rise in the coming years when new properties deliver. Vacancy levels remain below Jacksonville’s long-term average due to strong leasing on new units, almost 10,000 of which have opened in the past two years. Around 4,000 units remain under construction, but are evenly spread out over the next several quarters. Due to the strong demand and relatively limited construction activity, landlords have aggressively pushed rents during the economic recovery. Jacksonville’s multifamily rents were one of the first to recover in the summer of 2020. Rents continue to grow at a fast pace, and year over year growth is one of the strongest in Florida. Jacksonville has remained an investor favorite over the past decade, including during the economic recovery. Inventory turnover has averaged 14% annually over the past eight years. Though cap rates have compressed significantly in recent years, yields in Jacksonville are still attractive compared to other larger Sunbelt metros, let alone pricey core coastal locales. VACANCY Strong demand in recent quarters have allowed vacancies to compress to 6.0%, representing a drop of almost 300 basis points since early 2020. Vacancy levels are also in line with the Florida average and are below some other major Florida metros. With the heightened demand, vacancies will likely continue compressing in the near term. Jacksonville boasts one of the strongest employment recoveries of any metro in the U.S. due to its diverse economy. Additionally, the market has seen an influx of job announcements recently. Amazon is hiring hundreds of employees across the region, and information tech company Synergy Technologies is hiring 300 jobs in the coming years. In downtown Jacksonville, Fidelity Information Services is creating up to 500 new positions at its new headquarters. The project is expected to be completed in mid-2022. With relatively affordable rent prices, the new job announcements, and strong economic recovery will help bolster demand for apartment units. The local apartment market has benefited in recent years from strong population job growth, and the proportion of renters in Jacksonville is slightly above the national average. Still, single family alternatives remain relatively affordable and are likely to remain an option for current and prospective renters.

Source: CoStar

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3 INDUSTRIAL/ MULTI-FAMILY VALUATION

INDUSTRIAL COMPS

RECENTLY SOLD

1505 Dennis Street RBA 69,348 SF Acres 3.30

141 N Myrtle Ave RBA

40,000 SF

Acres

1.10

$991,180 ($14.29/SF)

$1,300,000 ($32.50/SF)

Price

Price

Year Bui lt

Year Bui lt

Demolished

1929

Date Sold

Date Sold

9/30/2019

8/25/2020

2121 Edison Ave RBA

925 N Ocean St RBA

27,021 SF

30,000 SF

Acres

Acres

1.14

1.53

$1,722,550 ($63.75/SF)

$615,000 ($20.50/SF)

Price

Price

Year Bui lt

Year Bui lt

1967

1950

Date Sold

Date Sold

12/10/2019

4/6/2020

1037 Hendricks Ave RBA 22,355 SF Acres 0.99

$2,000,000 ($89.47/SF)

Price

Year Bui lt

1954

Date Sold

4/5/2021

INDUSTRIAL USE VALUATION

HIGHEST PRICE

MIDDLE PRICE

LOWEST PRICE

Glove Fit User (Another Laundry Facility)

Downtown User

All Jacksonville User

$3,612,570 ($65.00/SF)

$2,778,900 ($50.00/SF)

$2,389,854 ($43.00/SF)

**Comparable properties and the subject property were not inspected. Information obtained within was based on public county data programs and C&W subscribed programs typically used for research. Landsquare footage could not be confirmed but rather estimated based on informa- tion provided by the owner or public county programs. Further, pricing is subject to in-place entitlements and concurrency for office use.

MULTI-FAMILY COMPS

MULTI-FAMILY COMPS

Riverside St Johns Address

555 Bishop Gate Lane

Units

125

Year Bui lt

2020

Neighborhood

Riverside

Land Price / Unit

$28,000.00

San Marco Promenade Apartments Address 1905 Promenade Way Units 284 Year Bui lt 2020 Neighborhood San Marco Land price / Unit $28,763.64

SouthBank Urban Address

959 Prudential Drive

Units

185

Year Bui lt

Under Construction

Neighborhood

Southbank

Land price / Unit

$20,270.27

River City Address

*Proposed and in process, not yet validated

835 Museum Circle

Units

335

Year Bui lt

Proposed

Neighborhood

Southbank

Land price / Unit

$29,850.75

MULTI-FAMILY USE VALUATION

For purposes of this BOV, we are assuming a prospective purchaser can achieve maximum zoning density per the Urban Priority Area at 80 Units Per Acre – 200 Units assumed for this BOV.

HIGHEST PRICE

MARKET PRICE

Glove Fit User

All Jacksonville

$7,000,000 ($35,000 per unit)

$6,000,000 ($30,000 per unit)

**Comparable properties and the subject property were not inspected. Information obtained within was based on public county data programs and C&W subscribed programs typically used for research. Landsquare footage could not be confirmed but rather estimated based on informa- tion provided by the owner or public county programs. Further, pricing is subject to in-place entitlements and concurrency for office use.

354 PARK STREET CONTACT Jacob Horsley Senior Director +1 904 380 8335 Jacob.Horsley@cushwake.com

Joseph Lentz Director +1 904 380 4112 Joseph.Lentz@cushwake.com

Cushman & Wakefield of Florida, LLC 121 West Forsyth Street, Suite 900 Jacksonville, FL 32202 +1 904 731 9500

THE BROKER OPINION OF VALUE IS AN OPINION OF VALUE OR A COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. THE BROKER OPINION OF VALUE WILL BE PREPARED BY A LICENSED REAL ESTATE BROKER OR SALESPERSON OR ASSOCIATE BROKER, NOT A LICENSED APPRAISER. In making any decision that relies upon the Broker Opinion of Value, Client should know that C&W has not followed the guidelines for development of an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation.