City Council - Successor Agency - Housing Authority
June 20, 2023

APPRAISAL REPORT
Fullerton Navigation Center
3535 W. Commonwealth Avenue
Fullerton, CA 92833, APN 030-040-15
CR File Number: 16953-22

5901 W. Century Blvd., Suite 1230 Los Angeles, CA 90045 T: 310.215.0482 F: 310.215.3089 www.CurtisRosenthal.com

Fullerton Navigation Center

3535 W. Commonwealth Avenue, Fullerton, CA 92833

5901 W. Century Blvd., Suite 1230 Los Angeles, CA 90045 T: 310.215.0482 F: 310.215.3089 www.CurtisRosenthal.com December 23, 2022

Eric Levitt,
City Manager
City of Fullerton
303 W. Commonwealth Avenue
Fullerton, CA 92832

RE: APPRAISAL REPORT
Fullerton Navigation Center
3535 W. Commonwealth Ave., Fullerton, CA 92833
APN 030-040-15
CR File # 16953-22

Dear Mr. Levitt,

Per your request, we have appraised the above-referenced property. Our appraisal is intended to conform to:
• The Uniform Standards of Professional Appraisal Practice (USPAP)

Our analyses and conclusions are contained in this Appraisal Report which is intended to comply with the reporting requirements set forth in USPAP Standards Rule 2-2.

In conformance with the Scope of Work rule of USPAP, the sections below describe the Scope of Work for this assignment.

Client - The client for this assignment is City of Fullerton, c/o Eric Levitt, City Manager, City of Fullerton, CA.

Intended User – City of Fullerton, c/o Eric Levitt, City Manager, City of Fullerton, CA.

Intended Use - The intended use of this assignment is to assist in asset monitoring.

Purpose of this Assignment - The purpose of this assignment is to estimate the “As Is” Market Value , as defined in the Addenda , of the ownership interest(s) in the su bject property stated in the valuation table below, as of the stated effective date(s) of value.

Effective Date of Value - The valuation table below includes the effective date of value for each valuation premise included in this assignment.

Mr. Eric Levitt
December 23, 2022

Relevant Characteristics of the Subject Property - The subject property was purchased in the year 2020 as a two-story 15,700 SF +/- industrial building used as an engineering building built in 1968, on APN Parcel 030-040-15 containing 33, 356+/- square feet or 0.7 66+/- acres located at 3535 W. Commonwealth Avenue in the incorporated City of Fullerton, County of Orange, State of California 92833 . Source: DataTree First American Financial Corporation and Orange County Assessor’s Plat Map

The building was renovated in 2020 to host the Fullerton Navigation Center with a state-of-the art facility created through a public -private partnership and offering nav igation and recuperative care beds under one roof. Fullerton Navigation Center offers the clients diversion assistance, crisis evaluation, trauma - informed case manageme nt, housing navigation, behavioral health and substa nce use therapy, transportation services, group and individual enrichment activities, accommodations for 20 pets, employment services, meals, laundry, security, and storage areas. The first floor consisting of a maximum capacity 60 bed recuperative care (clients arriving directly from hospitals ) and a maximum capacity 87- bed homeless shelter (men, women, and couples in the Navigation Center ) with a total of maximum capacity 147 beds on the first floor as of the December 12, 2022 inspection, this is down from 150 because one dorm 2 bed area was turned into a doctor’s visiting room on the first floor and another dorm has a support pole that made it hard to put a bed in the space.

The appraisers arrived on December 12, 2022, for the inspection, entering the Commonwealth Glass Lobby and met by Angelina Degen, Manager of Illumination Foundation Medical Group. The Glass Lobby has a reception desk and chairs in the waiting area. There is a passage door to the first floor area and a stairwall. The appraisers were escorted up the stairwell to the second floor and the Illumination Foundation Medical Group offices at the top of the stairwell. From the Glass Lobby there is a passage door into the first -floor area with a central hallway, men’s and women’s handicap restrooms, storage area, elevator, 2 offices, TV lounge, 2 more offices and the north client’s larger security entry.

The women’s dorms are to the south of the main hallway and the north larger security entry, The men’s doors are south of the women’s dorms. The couple’s dorm is at the south end of the building west of the recuperative unit. There are restroom facilities with multiple commodes, washbasins , and showers. The dining area and kitchen are off the main hallway on the southside and additional offices and lounge with the recuperative care patients 60 bed units to the south of the main hallway. The kennel, storage areas and utility area are at the north end of the facility.

The second story has a medical clinic and two conference rooms , restrooms and doctors and nurses’ offices/rooms, conference room, laundry facility, staff lounge, triage nurse’s office on the second floor as referenced in the site plan . There are seven offices on the second floor. There are three emergency staircases and one elevator. The second floor has wall to wall carpet and laminated wood flooring, painted drywall, fluorescent lighting and the ceiling is open beam with exposed heating and cooling vents, fire sprinklers, and aluminum foil insultation. The second floor covers approximately 40% of the net rentable area.

After purchasing the subject property, the building was renovated, and the former mezzanine increased in size into a more completed 2nd floor by adding 8,078+/- square feet as per the client furnished floor plans. The first floor has epo xy sealed finish over the concrete slab floor . The first-floor ceilings have drywall painted ceilings and through the building there is fluorescent lighting. There are skylights for additional lighting in the dorms and dining area. Some of the dorms have noise insulation panels to reduce the noise level within the dorms. The Net Rentable for Illumination Foundation Medical Group is shown in the site plan as 23,778+/ - square feet with 53% Site Coverage. Gross building and Net Rentable areas Mr. Eric Levitt
December 23, 2022

are 23,778+/- square feet. The appraisers viewed the interior of the property Angelina Degen, Manager of Illuminations Foundation Medical Group on December 12, 2022, our effective date of value.

The subject 2 lobby areas, the smaller Glass lobby area with security reception desk at Commonwealth Drive Street frontage and a second larger security Wood Lobby for clients to the north wood fenced area with paver entry area into the building. There are handicap restrooms available for men and women, and a handicap equipped unisex restroom, all restrooms are fully ADA compliant. The facility has a full-service kitchen, walk-in pantry with dry food storage, dining area with pastel wall murals , Lounge/TV room, couples’ dorms with 6 couples or 12 people, men’s dorms have 47 beds, and female dorms have 30 beds.

The facility furnishes storage facilities for clients’ belongings, Dog run, kennel pet care for client’s pets, “hot box” for pest control. There are indoor lockers and o utdoor lockers. Offices include Accounting Office, Counseling Office, Resources Office, Medical Office, and Case Manager’s Office.

According to the City of Fullerton Planning Department Zoning Map, the subject property at 3535 W.

Commonwealth Avenue is zoned C-M (Commercial Manufacturing). The subject is the second parcel east of the Fullerton Municipal Airport with a Focus Area A - Airport Industrial.

Analytical Approach- Our analysis included an inspection of the subject property, research of general data relating to the subject locale, research of transactions in the subject market area, as well as research of other market-related influences affecting the subject property. In our analysis, we gave consideration to the applicability of each of the traditional approaches to value including the Cost, Sales Comparison, and Income approaches. The methodology and data used in our valuation of the subject property are detailed in the Valuation Section of this appraisal report.

Conditions of this Assignment - The analyses and conclusions in this assignment are subject to the Scope of Work described above, the General Assumptions and Limiting Conditions that are contained within this appraisal report, and the following:

• Extraordinary Assumptions , which USPAP defines as assignment-specific assumptions as of the effective date regarding uncertain information used in an analysi s which, if found to be false, could alter the appraiser's opinions or conclusions.

1. None

• Hypothetical Conditions, which USPAP defines as conditions directly related to a specific assignment, which are contrary to what is known by the appraiser to exist on the effective date of the assignment results but are used for the purpose of analysis.

1. None

• Special Limiting Conditions, which are assignment-specific conditions that limit the use of the report.

1. None

Significant Valuation Issues- The following are assignment-specific issues which we found to be significant in this valuation assignment.

1. None

Nondiscrimination Statement - This appraisal has been completed without regard to race, color, religion, national origin, sex, marital status, or any other prohibited basis, and does not contain references which could be regarded as discriminatory.

Mr. Eric Levitt
December 23, 2022

As a result of our investigation and analysis, the table below presents our valuation opinion(s) for the subject property as of the stated effective date(s) of valuation.

Valuation
Premise
Interest
Appraised
Effective Date
of Value
FINAL
Value
Conclusion
“As Is” Market Value Leased Fee 12/12/2022 $8,580,000

Thank you for the opportunity to have been of service to you. If you have any questions regarding the material presented in this report, or if you require any further assistance, please give us a call.

Sincerely,

CURTIS-ROSENTHAL, INC.

Attn: William Bowman

Joe J. Villegas, MAI
CA #AG004648
[email protected]
David M. Rosenthal, MAI, FRICS
CA #AG001641
[email protected]

Table of Contents
EXECUTIVE SUMMARY .................................................................................................................................. 1 MARKET AREA ANALYSIS ............................................................................................................................... 2 Neighborhood Description ...................................................................................................................... 13 Property Market Overview ..................................................................................................................... 20 SITE DESCRIPTION ....................................................................................................................................... 21 IMPROVEMENT DESCRIPTION .................................................................................................................... 30 HIGHEST AND BEST USE .............................................................................................................................. 42 VALUATION TECHNIQUES AND METHODOLOGY ........................................................................................ 43 SALES COMPARISON APPROACH ................................................................................................................ 44 INCOME CAPITALIZATION APPROACH ........................................................................................................ 53 Market Rent Analysis .............................................................................................................................. 53 Rent Roll .................................................................................................................................................. 60 Capitalization Rate Analysis .................................................................................................................... 62 Pro Forma Operating Statement and Direct Capitalization .................................................................... 63 RECONCILIATION ......................................................................................................................................... 65 LEASED FEE “AS IS” VALUE .......................................................................................................................... 67 EXPOSURE TIME .......................................................................................................................................... 68 CERTIFICATION ............................................................................................................................................ 69 ADDENDA .................................................................................................................................................... 70

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 1

EXECUTIVE SUMMARY

PROPERTY IDENTIFICATION:

FILE NUMBER:

INTENDED USER:

Eric Levitt
City Manager
CENSUS TRACT:

ASSESSOR PARCEL NUMBER:

PROPERTY TYPE:

LAND AREA:

Square Feet
Acreage
BUILDING AREA:

Gross Building Area (sf)/Net Rentable Area
ZONING:

HIGHEST AND BEST USE:

As if Vacant
As Improved
CRITICAL DATES:

Date of Inspection
Date of Value
INTEREST APPRAISED:

Cost Approach:

Sales Comparison Approach:

Income Approach:

Reconciled Value:

Market Value, "As Is" - Leased Fee
December 12, 2022
December 12. 2022
Continued Use
Market Value, "As Is" - Leased Fee
CM, Commercial Manufacturing
Commercial Development

OPINION OF VALUE CONCLUSIONS
Not Applicable
$11,000,000
$9,580,000
$8,580,000
$10,000,000
001801 / 1004
030-040-15
Special Purpose Building
33,356

0.766
23,778
Fullerton Navigation Center
3535 W. Commonwealth
Fullerton, CA
16953-22
City of Fullerton
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MARKET AREA ANALYSIS

GREATER LOS ANGELES AREA

The Los Angeles Metropolitan Area is widely considered to comprise the five counties of Los Angeles, Orange, Riverside, San Bernardino, and Ventura. The map below shows the components of Greater Los Angeles, which form four-Metropolitan Statistical Areas (MSA). These are as follows: Los Angeles, Orange County, Oxnard-Ventura, and Riverside-San Bernardino.

A map of the region is located below.

Counties Comprising the Los Angeles Region

Los Angeles County
Orange County Riverside County
San Bernardino County
Ventura County

The region is well served by several international airports (including Los Angeles International), Amtrak (the national passenger rail service), and several east-west and north-south interstate highway systems.

Intra-regional transportation service includes a network of freeways, a commuter rail system, several bus systems, and a small but growing system of “subway” and “light-rail” trains..

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ORANGE COUNTY

Orange County is located in the heart of Southern California, with Los Angeles County to the north and San Diego County to the south. There are currently 34 cities within the county, which extends north to the cities of La Habra and Brea, east to the city of Rancho Santa Margarita, west to the cities of Los Alamitos and Seal Beach, and south to the city of San Clemente. Several cities in Orange County have been incorporated within the last decade. The most recent cities to incorporate were the cities of Laguna Woods (1999), Rancho Santa Margarita (2000), and Aliso Viejo (2001). While the unincorporated land area and related populations remain significant, they are declining in size and number due to recent annexation and incorporation activities.

Population

Orange County is second only to Los Angeles County in population for California counties. According to the Department of Finance’s population January 20 20 estimates, the county’s population exceeded 3.1 million, essentially unchanged from January 2019 estimates. The County’s cities had fractional gains and losses over the previous year estimates. Santa Ana and Anaheim are Orange’s largest cities with populations of over 357,000 and 335,000, respectively.

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The tables below show current population figures, forecasts, and trends for Orange County.

Source: Site to do Business 2020

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Source: California Dept of Finance (2022)

City 1/1/2021 1/1/2022 Change City 1/1/2021 1/1/2022 Change Orange 3,169,542 3,162,245 -0.2 Lake Forest 86,406 86,775 0.4 Aliso Viejo 51,233 50,782 -0.9 La Palma 15,463 15,332 -0.8 Anaheim 344,604 341,245 -1.0 Los Alamitos 11,895 11,873 -0.2 Brea 47,097 46,872 -0.5 Mission Viejo 93,171 92,515 -0.7 Buena Park 83,968 83,430 -0.6 Newport Beach 84,459 83,727 -0.9 Costa Mesa 112,183 111,394 -0.7 Orange 137,534 137,676 0.1 Cypress 50,029 49,810 -0.4 Placentia 51,522 51,204 -0.6 Dana Point 33,053 32,943 -0.3 Rancho Santa Margarita 47,703 47,279 -0.9 Fountain Valley 57,068 56,564 -0.9 San Clemente 63,877 63,380 -0.8 Fullerton 141,974 142,732 0.5 San Juan Capistrano 34,907 34,798 -0.3 Garden Grove 171,284 170,526 -0.4 Santa Ana 311,340 308,459 -0.9 Huntington Beach 197,616 196,100 -0.8 Seal Beach 25,002 24,846 -0.6 Irvine 301,254 310,250 3.0 Stanton 38,284 39,275 2.6
Laguna Beach 22,862 22,706 -0.7 Tustin 80,157 79,535 -0.8 Laguna Hills 31,017 30,750 -0.9 Villa Park 5,834 5,782 -0.9 Laguna Niguel 64,885 64,316 -0.9 Westminster 90,812 90,393 -0.5 Laguna Woods 17,670 17,514 -0.9 Yorba Linda 67,760 67,233 -0.8 La Habra 62,317 61,792 -0.8 Balance of County 133,302 132,437 -0.6 E-1: City/County Population Estimates with Annual Percent Change January 1, 2021 and 2022
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California Economy1

After appearing to sputter this spring, hiring perked back up in July. California's employers added a nation's best 84,800 jobs in July, marking the largest gain since February. Job gains were broad based, with every major sector except financial activities adding jobs during the month. The resurgence in hiring appears to be driven by a rebound in tech hiring, which added at least 15,600 jobs following several months of more modest gains. Several tech firms have announced plans to slow hiring in recent months, and that caution appeared to be showing up in the data. The latest data cast some doubt on that.

We caution against drawing too many conclusions from the latest data. The monthly data bounce around quite a bit and are subject to significant revisions early each year. We will get a hint as to what those revisions will loo k like next week, when the county employment data are released on Wednesday. We suspect that the Quarterly Census of Employment and Wage (QCEW) data will show that job growth was a touch stronger than first reported in early 2022, but we also suspect the economy has lost momentum since then.

One aspect of the labor market that has clearly cooled off is job openings, which fell by 212,000 in June.

California's 15.7% drop was by far the largest of any state and brought job openings back down to the lowest level since August of last year. The job openings rate fell from 7.1% to 6.1% over the month.

The strength in the industry employment data also did not extend to the household survey. The number of employed Californians rose by just 23,500 in July, which is the smallest gain this year. The civilian labor force fell by a similar amount, which resulted in a 46,800 -person drop in the number of unemployed. As a result, the unemployment rate tumbled 0.3 percentage points to 3.9%, which is the lowest it has been since data have been collected on a consistent basis in 1976.

Employment Snaps Back in July, But Questions Remain

• Only a month after appearing to be near the edge of recession, California's economy appears to be catching a second wind, as employers added 84,800 jobs in July.

• Job gains were exceptionally broad based with every industry, except financial activities, adding jobs during July.

• Professional & business services, and education & health services added the most jobs during the month, with both supersectors adding 20,500 jobs. Employment also continued to bounce back in California's leisure & hospitality sector, which added back 14,900 jobs.

1 Wells Fargo Economics Group, Commentary: August 2022
APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 7

• Within professional and business services, about half of last month's gain was in profession al, scientific & technical services, which is a subsector that captures many of the jobs created in California's tech sector. Hiring also rose solidly in the information sector (+4,400 jobs), another industry group that captures many tech jobs, as well as jobs in California's motion picture business, which also appears to have posted solid job gains in July,

• The bounce back in tech jobs lifted job growth in the Bay Area. The San Jose -Sunnyvale-Santa Clara MSA added 7,000 jobs in July, following a 9,000-job gain the prior month. The San Francisco metro division added 6,700 jobs in July, marking the largest gain since February. Oakland added 4,500 jobs in July, following a 5,500 -job gain the prior month. The improvement in hiring in the Bay Area suggests the hiring cooldown announced by many major tech companies has yet to make its way into the employment figures. Job openings have fallen, however, which may be a precursor to slower job growth this fall.

• Southern California accounted for the bulk of Californi a's job growth in July. The Los Angeles metro area added 21,900 jobs in July, while employers in Orange County added back 22,300 jobs.

Hiring also remained strong in the Inland Empire, which added 9,100 jobs.

• Not only did California see a resurgence in hiring in July, but the state's unemployment rate also fell to a new low, falling 0.3 percentage points to 3.9%, which is the lowest unemployment rate for California since consistent data began being collected in 1976.

• Do not break out the champagne just ye t. This past month's number appear to be at odds with the news flow out of many of the state's major employers. The monthly industry survey data are revised early each year to a count of jobs derived from unemployment insurance tax roles. Data through March 2022 will be released next week and are expected to show stronger job growth for 2021, and quite possibly through March of this year. The news flow has been decidedly less upbeat since March, however, and we expect the final data to show nonfarm employment growth decelerating over the course of this year and next. The household data, which are used to compute the unemployment rate, already show a marked deceleration, with household employment posting its smallest gain of the year in July.

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Current County Economic Conditions2

The unemployment rate in Orange County was 3.0 percent in August 2022, up from a revised percent in July 2022, and below the year -ago estimate of 6.0 percent. This compares with an unadjusted unemployment rate of 4.1 percent for California and 3.8 percent for the nation during the same period.

Between July 2022 and August 2022, total nonfarm employment declined from 1,660,800 to 1,656,100, a decrease of 4,700 jobs.

• Government reported the largest decline of any sector with a loss of 4,300 jobs. Local government shrank by 3,800 jobs, with all the loss in local government education as schools continue to shed jobs following summer recess. State government decreased by 500 jobs and federal government remained unchanged.

• Five other sectors declined over the month including other services (down 3,100 jobs), leisure and hospitality (down 1,400 jobs), financial activities (down 600 jobs), information (down 400 jobs), and professional and business services (down 300 jobs).

• Educational and health services increased the most of any sector, adding 2,500 jobs. Eighty percent of the expansion was in health care and social assistance (up 2,000 jobs). Private educational services added the remaining 500 jobs.

2 California Labor Market Information Division, Anaheim/Santa Ana/Irvine (Orange County), for September 2022

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• Three other sectors grew over the month: Construction (up 1,500 jobs), trade, transportation, and utilities (up 1,300 jobs), and manufacturing (up 100 jobs). Mining and logging did not change.

Between August 2021 and August 2022 , total nonfarm employment increased by 57,900 jobs, or 3.6 percent.

• Leisure and hospitality added the most employment of any sector, expanding by 27,500 jobs and was responsible for nearly half of the total year-over nonfarm increase. Accommodation and food services added 15,800 jobs and arts, entertainment, and recreation increased by 11,700 jobs.

• Seven sectors contributed an additional 36,900 jobs: Educational and health services (up 9,700 jobs), professional and business services (up 8,400 jobs), manufacturi ng (up 7,600 jobs), construction (up 7,300 jobs), trade, transportation, and utilities (up 1,900 jobs), information (up 1,100 jobs), and other services (up 900 jobs).

• Two industry sectors declined over the year: Financial activities (down 4,000 jobs) and government (down 2,500 jobs). Mining and logging reported no change.

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Largest Employers

Source: America's Labor Market Information System (ALMIS) Employer Database – 2022

County Transportation

Freeways: The region is serviced by the San Diego Freeway (I-405) / Golden State Freeway (I-5) that runs north/south between Los Angeles to the north and San Diego to the south. Other major north/south freeways include SR-73 and SR-55. Major east/west freeways include SR-22 and SR-91.

Air: The flourishing John Wayne International Airport provides air freight and passenger service. Additional air services are provided by Los Angeles International Airport (LAX), which is a major transportation hub both for passengers and cargo ; and, has experienced substantial growth over the past 15 years. In fact, LAX ranks third in the world for the number of passengers and tonnage of air cargo handled.

Rail: Orange County is served by the Metrolink, which provides access to the Los Angeles metropolitan area, as well as other areas in the region.

Employer Name Location Industry
Abbvie Irvine Pharmaceutical Research Laboratories
American Funds Irvine Services NEC
Anaheim City Hall Anaheim City Hall
Auto Club of S California Costa Mesa Automobile Clubs
B Braun Medical Inc Irvine Physicians & Surgeons Equip & Supls-Mfrs Boeing Co Coml Airlines Spprt Seal Beach Call Centers
Broadcom Corp Irvine Semiconductors & Related Devices (mfrs) California State Univ Fllrtn Fullerton Schools-Universities & Colleges Academic Edwards Lifesciences Corp Irvine Biotechnology Products & Services Fairview Developmental Ctr Costa Mesa Hospitals
Fountain Valley Regl Hosp-Med Fountain Valley Hospitals James R Glidewell Dental Crmcs Irvine Dentists
Jefferson School of Philosophy Laguna Hills Books School & Textbooks Kaiser Permanente Orange Anaheim Hospitals
Laguna Woods Village Cmnty Ctr Laguna Woods Senior Citizens Service Media Relations Dept-Ca Dept Anaheim Government Offices-State Mflex Irvine Electronic Equipment & Supplies-Mfrs
Mission Hospital Mission Viejo Hospitals
Providence St Joseph Hosp Orng Orange Hospitals
Pylusd Schools Placentia Schools
SOURIAU-SUNBANK Connection Tch Buena Park Electronic Equipment & Supplies-Mfrs St Jude Medical Ctr Fullerton Hospitals
University of Ca-Irvine Irvine Schools-Universities & Colleges Academic University-Ca Irvine Anteater Irvine Stadiums Arenas & Athletic Fields Walt Disney Parks & Resorts US Anaheim Amusement & Theme Parks APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 12

CONCLUSION – Market Area Analysis

The size, centrality, and diversity of the Greater Los Angeles’ economic base is expected to insulate it from the harshest effects of a national recessionary climate. The Orange County Region has held a premier position in the world for several years due to its leading role among the trading nations of the Pacific Rim, its extensive and still-developing transportation systems, its vast marketplace in terms of total purchasing power and diversity of consumers, and the establishment of various industrial and commercial headquarters in the region. The region is well positioned to continue economic leadership in the Pacific Rim and the rest of the state and country. Ultimately, the pos itive features of the Greater Los Angeles area including favorable climate, cultural appeal, and historic presence as a leading metropolitan area are considered to be beneficial traits and are expected to be sufficient to maintain the region as a leading commercial and economic center and should serve as a means of sustaining future economic growth.

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 13

Neighborhood Description

The subject property is in the City of Fullerton, in Orange County. The property is located along the north side of Commonwealth Avenue, just to the east of the Fullerton Municipal Airport, in the southwest portion of the city, north of Thompson Street and east of Magnolia Avenue in the City of Fullerton.

According to the most recent California Department of Finance estimate, the city's population is 467,730.

The subject property is in an area of commercial uses including retail, business parks with office and industrial manufacturing uses , with commercial businesses, residential single-family homes and multi - family uses mixed along with commercial business uses along the south side of Commonwealth Avenue and across from the Fullerton Municipal Airport. The immediate area of the subject property is generally characterized as fully developed, stable and a good location for a business park known as Commonwealth Business Center and zoned C -M (Commercial Manufacturing). The Airport is zoned M -G (Manufacturing General), There are some C-G (General Commercial) Zones and some R-3 (Residential) Zones surrounding the subject property.

The Fullerton Municipal Airport is the only general aviation airport remaining in Orange County, it is the last remnant of the Hughes Company in the area which was prominent in the aerospace industry up until the 1970’s. From early 1970 through early 1980s the airport was served by Golden West Airlines, a larger commuter airline of that time period. The nearest airport with scheduled service is now John Wayne Airport in Santa Ana. The airport is self -supporting and does not receive any su bsides from the city .

Revenues from the airport fund the cost of operations and maintenance with surplus going to the Enterprise Airport Fund. The airport was founded in 1927 with 86 acres of space it has 3,121 feet of runway length, capacity of 600 planes. The FAA Tower was opened in 1959. The airport starts on the north side of Commonwealth Avenue, west of the subject address and another concrete tilt-up building at 3621 Commonwealth. The airport extends westerly to Dale Street on the north side of Commonwealth Avenue.

Commonwealth Avenue is considered a major arterial within the City of Fullerton.

Magnolia Avenue at Commonwealth Avenue is a signalized arterial with airport hangar area and landscaped entry into the airport driveways. At the street frontage of Commonwealth Avenue is a large metal building known as the General Aviation Company, Executive Aircraft Hangar . Behind the General Aviation Company building are smaller stucco finished buildings, also possible hangar buildings. The Tower and Main Vehicle Parking area are at 4011 Commonwealth with the AFI Flight Training Center and Pilot Supplies at 4119 Commonwealth Avenue. The Fullerton Municipal Airport terminates at the signalized intersection of Dale Street and Commonwealth Avenue. This intersection has a landscaped center median.

The south side of Commonwealth Avenue has the Airport Plaza commercial/retail strip center with businesses such as a Liquor Market, BBQ Chicken, Coffee Shop, Beauty Salon , Jopok Topokki Korean Restaurant, followed by Got Change and electro plus . Next to the east is the large complex known as Fullerton Court Apartment Homes. Coldwell Banker Best Realty is to the east and at 4128 Commonwealth Avenue is a 2-story office building with multi-tenants, followed by a small older o ne-story stand-alone 3 office multi-tenant building and a two-story building at the rear with an address of 4108, 4110, and 4112.

At 41 00 is the California Arts University. At S outh Edwards Avenue is a mixed -use commercial/retail building with OC Tire N Auto at the corner, a clothing business beauty salon and two addition units with the entrance to the second-floor residential units at 4014 Commonwealth Avenue (has an orange awning entry), this building is just south of the airport tower location to the north. At 4004, 4006, and 4008 is a multi-family tri-plex building. Turner Avenue has an automotive repair business known as BK Auto and at APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 14

3900 Commonwealth Avenue is Orange Automotive Repair. Kellogg Avenue has a 2 -story office building with Chiropractic and Skin Care businesses, followed by a two-story multi-family residential building. Faith Deliverance Apostolic Worship Center is at 3800 Commonwealth Avenue and at Waldo Avenue is a single- family residence with firewood business. Magnolia Avenue is signalized with a commercial retail strip center on the southwest corner of the intersection and the rear block walled area of a single -family housing tract at the southeast corner. There is a converted single -family building into two offices and a single-family residential home. At Thompson Avenue (across the street from the subject) is Kidde Learning Academy at 3516 E. Commonwealth Avenue, followed by a 2-story, 3 building multi-family complex known as Compri Apartments. On the north side of Commonwealth from the subject property are two single - family homes and at the northwest signalized corner of Commonwealth Avenue and Pritchard Avenue is a small neighborhood Mini Mart. At this point, the neighborhood changes to residential uses. As the zoning map shows, there are several residential land use zones in the subject neighborhood.

Overall, the neighborhood has mixed-use commercial, industrial, multi-family and single-family residential developments. According to Federal Financi al Institution s Council ( FFIEC) t he neighborhood ’s annual Median Household Income in 2022 was reported as Moderate Tract Level Income of $64,850. According to Esri’s survey within one mile of the subject property the annual Median Household Income in 2022 was reported at $72,782. In our op inion property values are stable due to the high demand for affordable senior care housing in the neighborhood.

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Location Maps

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 19

AERIAL MAPS
Close-Up View

Extended View

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 20

Property Market Overview

PWC Real Estate Investor Survey – Fourth Quarter 2022

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 21

SITE DESCRIPTION

Address 3535 W. Commonwealth Avenue, Fullerton, CA 92833

Assessor Parcel No. 030-040-15

Legal Description

The Land referred to herein below is situated in the City of Fullerton, in the County of Orange, State of California, and is described as follows:

Parcel A:

Parcel 2, in the City of Fullerton, County of Orange, State of California, as per map recorded in Book 63, Page 15 of Parcel Maps, in the Office of the County Recorder of said County.

Parcel B:

A Non-Exclusive easement for Joint Access, Pedestrian and Vehicular Traffic over that portion of Parcel 3, in the City of Fullerton, County of Orange, State of California, as Per Map Recorded in Book 63, Page 15 of Parcel Maps, in the Office of the County Recorder of said County, which portion is delineated o n a Map Marked Exhibit “1” attached to that certain instrument entitled “Termination of Reservation of Joint Access and Reciprocal Easement Agreement and Replacement Easement Agreement” recorded April 22, 2002, as Instrument No. 20020334465 Official Records of said Orange County, California.

Site Area 33,356+/- square feet or 0.766+/- acres

Site Shape Rectangular

Improvements Fullerton Navigation Center

Site Coverage Ratio 53%
APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 22

Zoning CM, Commercial Manufacturing. The CM Zone is to provide for selected areas where on-premises retail sales and services along with the related assembling, processing, and manufacturing can be carried out.

Examples of Permitted uses include Automotive parts an d installation, Automotive wholesaler or broker with no car display, Car rental agency with 10 or less vehicles, Communication facility, non -commercial subject to FMC, Copy shop, retail and industrial, Emergency shelter for homeless subject to FMC 15.42, Furniture refinishing and upholstery shop, Small Fitness facility , Home improvement center, hardware store, Interior designer office including showroom and sales, Internet or cybercafé, including computer lounge or internet arcade subject to FMC, Manufactu ring, processing, assembling of materials and products along with offices and storage, sales and repairs of products manufactured, Massage establishment subject to FMC, Micro-Brewery with tasting rooms not to exceed 1,000 square feet of indoor area & Adm.

Restaurant Use Permit, Multi-service center for homeless subject to FC 15.42, Personal services facility, Poolroom subject to FMC , Public amusement room subject to FMC, Recording studio, Recycling facility, Reverse vending, Restaurant with on -site alcohol subject to FMC, Satellite dish antennae subject to FMC, Special events subject to FMC, Financial Institution, Human service agency, Office – general and medical, Residential care facility for elderly subject to FMC , Communication facility and School, trade/Vocational.

Development Standards: In Commercial Zoned Classifications there is no maximum site coverage. The Floor Area Ratio for CM Zone is .35. Minimum setback from property line along a public street building wall or parking area is 10 feet, and along an interior lot line it is zero.

Parking depends on type of uses and breakdown of uses. Residential Care Facility:
1 space/5 beds or 30 spaces for the subject property. All commercial and offices is 1 space per 250 feet, Office, medical – depends on type: 1 space per 180 feet and medical office less than 5,000 square feet is 1 space per 250 feet.

Zoning Compliance The subject appears to be Legally Non-Conforming due to FAR Ratio of .71 (2 nd floor enlargement), greater than allowance of .35 in CM Zoning Development Standards. 23,778 total building square feet divided by lot size of 33, 356 = 0.71 Floor Area Ratio.

Utilities All necessary utilities are available and connected to the site including water, natural gas, electricity, sewer, and telephone.

Flood Zone Zone: X, Map Number: 06059C0126 J, dated December 3/2009.

This is an area of minimal flooding.

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 23

Earthquake Zone Properties in California are subject to some degree of earthquake risk. According to the California Department of Conservation, the subject is not located within an Earthquake Fault Zone. The subject is within a Liquification Zone but is not in a Landslide Zone. This area is not known to be a Special Study Zone for seismic activity. We are not seismic engineers , and we are not qualified to determine earthquake hazards. Our appraisal assumes that the subject is not adversely impacted by atypical earthquake ri sk. We recommend obtaining a geologic study to determine any potential earthquake hazard that might impact the subject site.

Soil Conditions No soil report has been provided to us. Our on -site inspection of the subject property revealed no obvious evidence of adverse geologic or soil conditions on the subject site. We are not geologists or soil engineers , and we are not qualified to detect geol ogic or soil related problems. Our appraisal assumes that no detrimental geologic or soil -related conditions impact the subject property. We recommend consulting with a qualified geologist or soil engineer to determine whether detrimental geologic or soil conditions exist on the subject site.

Environmental
Conditions
No environmental report has been provided to us. Our on -site inspection of the subject property revealed no obvious or apparent evidence of soil contamination or the presence of toxic or haza rdous substances. We are not environmental engineers, and we are not qualified to detect environmental contamination.

Our appraisal assumes the subject site is clean with no contamination. We recommend consulting with a qualified environmental engineer to determine whether environmental contamination exists on the subject site.

Easements and
Encumbrances
We were not provided with a Preliminary Title Report. We are not aware of any easements or encumbrances impacting the subject other than those imposed by local government and quasi -government agencies for common utilities, public rights-of-way, etc. Our appraisal assumes the subject to be free and clear of any negative easements, restrictions, and encumbrances impacting the subject site.

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 24

Plat Map

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 25

Site Plan

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 26

Zoning Map

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 27

Flood Map - FEMA

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 28

Earthquake Map

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 29

Traffic Close-up

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 30

IMPROVEMENT DESCRIPTION

Overview
Type of Use Fullerton Navigation Center

Year Built 1968/remodeled in 2020

Gross Building Area 23,778 square feet

GBA Source Per County Assessor records and Site Plan

Net Rentable Area 23,778 square feet.

NRA Source Client

Building Area
Comments
For exact measurements, we recommend retaining a surveyor.

#. of Buildings One

#. of Stories Two

# of Tenant Spaces One

Floor Area Ratio .71

Parking
Type Surface - asphalt

# of Spaces 25 (per the site plan)

Parking Ratio 1.05

Site Improvements
The subject site is improved with 23,778-sf Navigation C enter with medical recuperation area and homeless area, and 25 parking spaces.

Appraiser Observations
Quality Above Average
Condition Good
Deferred Maint. None observed
Functional Utility Good
Interior Condition Good

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 31

Site Improvements

A 23,778 square foot special purpose building, with 25 parking spaces, situated on 0.766 acres. The property has a fenced yard with block wall fences and wood gates at the northeast end of the property. The landscaped area well maintained.

Building Features

First Floor

Second Floor

Lobby with glass doors, entry into recuperative care dorms, 2 ADA restrooms, medical and office space, 8 dorm rooms, flooring is sealed epoxy over concrete, ceilings are painted drywall, fluorescent light fixtures, and operation managers office. Skylights in dorms and dining room.

The Navigation: all gender restrooms, men & ladies’ restrooms, couples’ dorm for six couples, men’s dorm has 4 7 beds, lady’s dorm has 30 beds.

Maximum capacity 147 beds, 87 shelter beds and 60 recuperative care beds.

Dining room, counseling office, elevator and staircases, full service kitchen, walk-in pantry with dry food storage, indoor lockers, TV lounge room, case managers office, outdoor lockers, dog run area, dog kennel, outdoor patio, security lobby, unfinished storage area (hot box) and supply room.

Fully insulated ceilings with indoor sprinklers, open exposed beam ceilings, wall to wall carpeting in hall and offices, 3 staff offices, conference ro om, 3 emergency staircases by the elevator, and fluorescent lighting.

Appraiser Observations

Quality

Average plus

Condition

Good

Deferred Maintenance

Comments

There was not any deferred maintenance.

Prior to renovation, the building was originally an industrial building with 8,500 square feet of office space within 15,700 square feet.

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 32

Improvements-Age/Life, Depreciation

Actual Age

54 years

Effective Age

10 years, per our observation and estimate

Economic Life

55 years, per Marshall and Swift Valuation Service

Remain. Econ Life

45 years, per our observation and estimate

Depreciation

Effective Age

/

Economic Life

=
Depreciation %
10 years / 55

years = 18%

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 33

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 34

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 35

Photographs of the Subject Property

Glass Lobby View from 2nd floor stairwell

Administration 2nd floor corridor

Typical Exam Room

Typical Administration Room

Exposed ceilings in Administration Section
Administration Staff Lounge

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 36

Photographs of the Subject Property

Conference Room

Roof Access

Emergency Stairwell

Lab Room

Handicap Restroom

1st Floor Laundry Room

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 37

Photographs of the Subject Property

Dining Room View from 2nd floor

Wood Lobby Main Entry

Exterior Patio & Designated Clients Lockers

Indoor Dog Kennel

Interior 1st Floor Storage
Indoor lockers near Wood Lobby Entry

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 38

Photographs of the Subject Property

Client Lounge near Wood Lobby

Mens’ Dorm

Couples’ Dorm

Dorm for 10 Men

Dorm for 6 Men
Full Service Kitchen

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 39

Photographs of the Subject Property

Elevator

Parking

Wood Lobby Security Controlled Entry Gate

Front Elevation of Building looking north

West view of Commonwealth Drive
East view of Commonwealth Drive

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 40

Photographs of the Subject Property

West Elevation of building

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 41

Real Estate Taxes

According to California Proposition 13, real estate taxes in California are limited to 1.00% of assessed value plus limited amounts for bonded indebtedness. Properties are reassessed upon sale or transfer of over 50% of the ownership interest, and when significant remodeling or n ew construction is completed. The new assessed value would be based on the current market value of the property on the date of sale, which typically corresponds with the purchase price paid for the property, or on the date of reassessment.

Since the defin ition of value for this assignment assumes a sale of the property, our valuation analysis uses a property tax liability based on our appraised value estimate for the subject property as though a sale had occurred.

Our inquiry with the County Tax Assessor’ s Office did not reveal any past-due taxes currently impacting the subject property. First Installment has been paid.

Our appraised value estimate of the subject is higher than the current assessed value due to improved market conditions since the date of acquisition.

Ownership History

The following table presents the current ownership and recent ownership history of the subject property.

Ownership History
Transaction Doc. No. Buyer Seller Sale Date Sale Price
Deed 089942 Dyer 18, LLC The Broaddus
Family Trust 2/28/2020 $3,600,000

We are not aware of any other sales, listings, escrows or pending sales of the subject property during the past three years.

APN Tax Year Land Improvements Total Base Tax Assessments Total Taxes 030-040-15 2021/2022 $3,086,650 $1,363,268 $4,449,918 $48,076 $3,747 $51,823 TOTALS $3,086,650 $1,363,268 $4,449,918 $48,076 $3,747 $51,823 Tax Area 3-087
Tax Rate 1.080390% 0 0 0 0
Assessed Value Property Taxes
APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 42

HIGHEST AND BEST USE
Analysis of Land, As If Vacant

Physically Possible: The subject site is 33,356 sf. No physical impediments were observed that would prevent the subject site from being developed to its Highest and Best Use.

Legally Permissible: The zoning of the subject site CM, Commercial Industrial. Based on the zoning of the subject site, legally permissible uses of the site would include commercial uses serving the City of Fullerton.

Financially Feasible: The subject’s immediate neighborhood primarily consists of an area of commercial , industrial and residential uses. The general composition of uses in the subject area is generally consistent with the legally permissible uses as prescribed by local zoning standards. Therefore, if the subject was vacant and suitable for development, it is our opinion that the most financially feasible alternative would appear to be represented by the development of commercial services and offices.

Maximally Productive: The maximally productive use is that use which provides the greatest return and the most profitable alternative. Physically the subject site would not specifically preclude any type of development. Legally the zoning allows for various types of uses as discussed above. From the legally permissible uses, it is our opinion that financially fea sible uses would include commercial services an d office. Our analysis indicates that of the financially feasible uses, the maximally productive use of the subject site would be commercial services and offices.

Therefore, it is our opinion that the Highest and Best Use , As If Vacant of the subject site would be commercial services and offices.

Analysis of the Property, As Currently Improved

The analysis of the subject property, As Improved, relies on the same basic criteria outlined in the discussion of Highest and Best Use of the subject site assumed vacant. However, the current discussion focuses on whether the existing improvement program offers any contributory value.

The subject is generally functional for its intended use and is operating successful ly. A review of the subject’s physical traits did not suggest any specific items or modifications that would need to be completed in order to achieve the subject’s Highest and Best Use. Our analysis indicates that the existing improvement program offers substantial contributory value over and above the underlying land value.

Therefore, it is our opinion that the Highest and Best Use, As Currently Improved of the subject property, is to continue the existing use of the property as presently configured.

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 43

VALUATION TECHNIQUES AND METHODOLOGY

Valuation Techniques

Three approaches to value form the foundation for current appraisal theory. These approaches are Cost Approach, Sales Comparison Approach, and Income Capitalization Approach.

Cost Approach
This approach is based on the proposition that an informed purchaser would pay no more for a property than the cost of producing a substitute property with the same utility. It is particularly applicable when the subject property involves relatively new improvements that represent the Highest and Best Use of the land, or when relatively unique or specialized improvements are located on the site for which there exist no comparable properties in the market.

Sales Comparison Approach
This is an appraisal procedure in which the market value estimate is predicated upon prices paid in actual market transactions and current listings. The former fixes the lower limit of value in a static or advancing market (pricewise) and fixes the higher limit of value in a d eclining market. The latter fixes the high limit in any market. It is a process of analyzing sales of similar, recently sold properties in order to derive an indication of the most probable sales price of the property being appraised.

The reliability of this technique is dependent upon:

1. Availability of comparable sales data

2. Verification of the sales data, and

3. The degree of comparability or extent of adjustment necessary

Income Capitalization Approach
This approach is widely applied in appraising income-producing properties. Anticipated present and future income, as well as any future reversions, is discounted to the present value through capitalization. This approach relies upon market data to establish current economic rents and expense levels to arrive at an expected net income.

Valuation Methodology Used in This Assignment

Our valuation of the subject property includes the following analysis:

• Sales Comparison Approach
• Income Capitalization Approach

Significant valuation issues we addressed are cited below:

None.

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 44

SALES COMPARISON APPROACH

The Sales Comparison Approach is a method of valuation that compares prices paid for similar properties in an open and free marketplace.

We surveyed the market in the subject area to locate comparable sales of similar properties which would aid in forming an opinion of value for the subject property. Our search parameters are summarized below.

Primary Search Parameters for Sale Comparables
Location 50 Mile Radius
Sale Date 3rd Qtr. 2021 to 4th Qtr. 2022
Property Type Retirement Centers
Method of Analysis
Price Per Unit Our research indicated most investors
analyze sale comparables on this basis.

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 45

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 46

Sales Table

Item Property Name Sale Date Building Area (sf) Cash Eq. Price Street Address Document No. Year Built Price Per SF
City State Zip Code Confirmation Source Occupancy Price Per Bed Assessor's Parcel No(s) Beds OAR
1 West Anaheim Extended Care September 30, 2022 33,000 $25,000,000 645 S. Beach Blvd. 322470 Effec. 1980 $757.58
Anaheim CA 92804 CoStar Comps / Press Release 96% $181,159 079-951-28 138 39.36% 8.00%
Buyer: Ewa Owner LLC Seller: Care West Anaheim Extended 2 Hollybrook Senior Living of Orange August 16, 2022 35,233 $7,312,500 2025 N. Bush St. 278856 1970 $207.55
Santa Ana CA 92706 CoStar Comps / Grant Deed 36% $56,250 003-111-18 & 22 130 37.66% N/A
Buyer: All Health Holdings LLC Seller: Holly Brook Montecito Real Estate LLC 3 Beacon Health Care March 21, 2022 16,044 $5,300,000
919 N. Sunset Ave. 317166 1963 $330.34
West Covina CA 91790 CoStar Comps / Grant Deed 100% $98,148 8435-024-027 & 028 54 36.83% N/A
Buyer: Sunset Vista Holding LLC Seller: Melon Partners LLC

4 Atria Rancho Park January 6, 2022 53,036 $16,327,000
801 Cypress Way 21090 1975 $307.85
San Dimas CA 91773 CoStar Comps / Grant Deed 100% $98,952 037-052-010 165 13.53% N/A
Buyer: Paicfica Rancho Park LP Seller: Nationwide Health Properties, Inc. 5 Palm Retirement Center August 2, 2021 29,242 $10,550,000 312 N. Roosevelt Ave. 488201 1977 $360.78
Fullerton CA 92832 CoStar Comps / Tom Nguyen 91% $73,264 037-052-010 144 36.48% 7.63%
Buyer: Shu Shanti 5 LLC Seller: Golden Retirement Home LLC 83,849
46,783
R3

0.57 43,562

SUMMARY OF BUILDING SALES
Land Area (sf)
Zoning
Parking/1,000 sf
Site Coverage
AP

0.98:1
Comments: This is an investment purchase of a 1975-built, two-story, assisted living facility located in a residential area in San Dimas. This property is located in a upper income tract neighborhood. The cap rate was not available. This property was not exposed to the market. 1st Mortgage financed 100%.

Comments: This is an owner-user purchase of a 1977-built, two-story, assisted living facility located in a residential area in Fullerton. This property is located in a middle income tract neighborhood. The reported cap rate was 7.63%. This property was exposed to the market for 350 days. American Business Bank financed 50.9%.

SP

2.06 Comments: This is an investment purchase of a one-story, assisted living facility located in a commercial area in Anaheim. This property is located in a middle income tract neighborhood. The cap rate was reported at 8.0%. This property was not exposed to the market. East West Bank financed $21,833,000.

Comments: This is an investment purchase of a 1970-built, two-story, assisted living facility located in a residential area in Santa Ana. This property is located in a upper income tract neighborhood. This property was not exposed to the market. New Omni Bank financed $4,875,000.

Comments: This is an investment purchase of a 1963-built, one-story, assisted living facility located in a commercial area in West Covina. This property is located in a middle income tract neighborhood. This property was not exposed to the market. This was an all cash purchase per public records. 195,955
R3-MF45

2.49 40,075
C

0.68:1
APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 47

Photographs of Comparable Sales

Sale Number One

Sale Number Two

Sale Number Three

Sale Number Four

Sale Number Five

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 48

Sale Adjustment Grid

SUBJECT ONE TWO THREE FOUR FIVE
Sale Price N/A $25,000,000 $7,312,500 $5,300,000 $16,327,000 $10,550,000 Beds 147 138 130 54 165 144
$ Bed N/A $181,159 $56,250 $98,148 $98,952 $73,264
Rights Conveyed Investor
Adjusted $ Bed N/A $181,159 $56,250 $98,148 $98,952 $73,264 Financing Terms Conventional
Adjusted $ Bed N/A $181,159 $56,250 $98,148 $98,952 $73,264 Condition of Sale Conventional
Adjusted $ Bed N/A $181,159 $56,250 $98,148 $98,952 $73,264 Δ In Market Conditions December-22
Adjusted $ Bed N/A $181,159 $56,250 $98,148 $98,952 $73,264 General Location Fullerton
Specific Location Commonwealth Ave. -5% -10% -5% -10% -5% Beds 147 -10%
Quality Average + -10%
Age/Condition Good 10% 10%
Parking Ratio / 1,000 sf 1.05 -2% 2% -2% 2%
Site Coverage 53% -2% -2% -2% -5% -2%
Occupancy 100% 20%
Subtotal of Adjustments N/A -19% 20% -19% -15% 5%
FINAL INDICATORS N/A $146,739 $67,500 $79,500 $84,109 $76,927 Total % Adjustment N/A -19% 20% -19% -15% 5%
Overall Comparison N/A Superior Inferior Similar Superior Similar

BUILDING SALES MATRIX
APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 49

Valuation Analysis

Our analysis of the comparable sales considers features of comparison that a knowledgeable buyer in the subject marketplace would consider. The adjustments applied are not based on paired-data analysis and they are not intended to be viewed in a precise or absolute context. Rather, they are intended to offer general insight regarding the order of magnitude afforded each of the adjustment categories, based on our research in the subject marketplace.

Market Conditions (Time)
We have considered the PWC 4 th Quarter 2022 Net Lease Investment investor comments which state:

Most investors view this market as overpriced, and many do not foresee property values increasing in the next 12 months. The average forecast value change falls to -1.1%. Therefore, no time adjustment is warranted.

Rights Conveyed, Fining Terms, Conditions of Sale
We have made no adjustments.

Physical Adjustments
We have considered the following for physical adjustments: General Location; Neighborhood Location, Quality & Appeal; Bed Count; Age/Condition/Amenities; Site Coverage, Parking Ratio and Occupancy.

Our discussion of each of the Comparable Sales is presented below.

Comparable Sale 1 – West Anaheim Extended Care - $181,159/Bed Sale 1 is a September, 2022, sale located at 645 S. Beach Blvd., Anaheim . This Assisted Living Facility project was built in the 1980’s (estimate only) with 138 beds. The facility has 138 assisted living units and is rated good quality and appeal. The property is built on 1.92 acres, has a site coverage of 39.36% and a parking ratio of 2.06:1.

The property is adjusted downward for superior parking ratio, its specific location (middle income tract), quality and appeal, and for its site coverage.

The indicated value is $146,739 per Bed.

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 50

Comparable Sale 2 – The Hollybrook Senior Living of Orange - $56,250/Bed Sale 2 is an August 2022 sale located at 2025 N. Bush Street, Santa Ana. The Assisted Living Facility project was built in 197 0. The facility consists of 1 10 assisted living beds and 20 memory care beds and 36% occupancy. The property is built o n 1.07 acres with a site coverage of 3 7.66% and a parking ratio of

0.57:1.

The property is adjusted upward for lack of upgrades (age/condition), occupancy and parking ratio. The property is adjusted downward for its superior specific location (upper income tract) and site coverage.

The indicated value is $67,500 Per Bed.

Comparable Sale 3 – Beacon Healty Care Center - $98,148/Bed Sale 3 is a March, 2022, sale located at 919 N. Sunset Avenue, West Covina. This Assisted Living Facility project was built in 1963 and has been renovated and is 100% occupied. The facility consists of 54 assisted living beds. The property is built on 1.0 acre with a site coverage of 36.83% and a parking ratio of 2.49:1.

The property is adjusted downward for inf erior parking ratio , for its superior neighborhood (middle income tract), smaller bed count, and site coverage.

The indicated value is $79,500 Per Bed.

Comparable Sale 4 – Altria Rancho Park - $98,952/Bed
Sale 1 is a January 6, 2022, sale located at 801 Cypress Way in San Dimas. This Assisted Living Facility project was built in 1975 with 165 beds and 100% occupancy. The facility has 80 independent living units and 80 assisted living units. The property is built on 4.50 acres, has a site coverage o f 13.53% and a parking ratio of 0.98:1.

The property is adjusted downward for its specific location (upper income tract) and for its site coverage.

The indicated value is $84,109 per Bed.

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 51

Comparable Sale 5 – The Palm Retirement Center - $73,264/Bed Sale 2 is an August 2, 2021, sale located at 312 N. Roosevelt Avenue in Fullerton. The Assisted Living Facility project was built in 1977 and has no upgrades. The facility consists of 108 assisted living beds and 36 memory care beds located in separate wings of the building and has 91% occupancy. The property is built on 0.92 acres with a site coverage of 36.48%, and features a large dining hall and commercial kitchen, recreation rooms, library, salon and two outdoor courtyards and a parking ratio of 0.68:1.

The property is adjusted upward for lack of upgrades (age/condition) and parking ratio. The property is adjusted downward for its superior specific location (middle income tract) and site coverage.

The indicated value is $76,927 Per Bed.

Conclusion to Price per Bed Analysis

All the comparable properties are located within the subject’s general or competing market area. The comparables indicate an adjusted range of $67,500 per bed to $146,739 per bed. Most weight is given to sale 5 which has the lease net adjustment and close proximity to the subject property. It is our opinion that the subject property would trade toward the lower end of the range at $75,000 per bed at a stabilized occupancy of 98%.

Therefore, it is our opin ion that the market value of the subject property, based on the Price per Unit method of analysis, is as follows:

Unadjusted Adjusted
Minimum: $56,250 $67,500
Maximum: $181,159 $146,739
Range: $124,909 $79,239
Price PER BED - Building Comparables
Beds x Unit Value = Market Value
147 x $75,000.00 = $11,025,000
Market Value - Sales Comparison (Rounded) = $11,000,000 APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 52

Sales Comparison Market Value Conclusion –

Based on the data and analysis presented above, it is our opinion that the following Market V alue is indicated for the subject property according to the Sales Comparison Approach. This will be reconciled with the value indications from the other approaches in the Reconciliation section at the end of this report.

Sales Comparison Approach
Value Conclusion $11,000,000
APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 53

INCOME CAPITALIZATION APPROACH

The Income Capitalization Approach considers the subject property’s income potential. The two primary methods used to measure the present value of an income stream are Direct Capitalization and Discounted Cash Flow.

Direct Capitalization derives a value by capitalizing a single year’s pro jected net income. The appraiser must first estimate the subject’s Potential Gross Income based on a survey of comparable rentals.

Allowances are made for projected losses in income due to vacancy and collection. The residual income is the Effective Gross Income, which is further adjusted for operating expenses to arrive at an estimated Net Operating Income. Finally, using a capitalization rate indicated by comparable sales or constructed through a Mortgage -Equity analysis, we capitalize the Net Operating I ncome to arrive at a value conclusion.

Market Rent Analysis

We surveyed the subject’s market area to find comparable rentals that could help us estimate the current range of market rent for space similar to the subject. Our search parameters are summarized below.

Primary Search Parameters for Comparable Rentals
Location California
Lease Dates December 2020 to December 2022
Type of Space Medical & Urgent Care Clinics
Method of Analysis
Rent Per Square Foot Per Month Our research indicated most landlords and tenants analyze the rental market on this basis.

Rental Basis Triple Net

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 54

Maps of Comparable Rentals

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 55

Table of Comparable Rentals

Item Property Name Lease Date Leased Area Lease Type Face Rate Street Address Term (months) T/I's ($ psf) Eqv. Lease Type Eqv. Face Rate City/State Tenant Lease Concess. Free Rent (mos)
Confirmation Source(s) Building Area Year Built Effective Rate Parking Ratio/1,000 SF Site Coverage
1 Shangrila Med/Spa March-22 6,953 NNN $2.55 27512 Calle Arroyo 36 $0.00 -- --
San Juan Capistrano, CA 92675 First Floor -- $2.55
CoStar - Gary McArdell, Lee & Associates 6,953 1981 $2.55

3.88 50%
Comments:
2 Fresenius Medical Care February-22 10,032 Modified Gross $4.40 9432 Venice Blvd. 60 $0.00 NNN $3.72
Culver City, CA 90232 Fresenius -- $3.72
Offering Memorandum - Carl Lambert, Agent 10,032 1948 $3.72

2.39 45%
Comments:
3 Lake Forest Urgent Care November-21 4,500 NNN $3.00 22855 Lake Forest Dr. 36 $0.00 -- --
Lake Forest, CA 92630 Suite A -- $3.00
CoStar - Randall Dalby, Lee & Associates 10,688 1990 $3.00

2.25 22%
Comments:
4 RAI Care Center June-21 11,046 Modified Gross $1.82 2740 S. Bristol St. 83 $0.00 NNN $1.55
Santa Ana, CA 92704 Suites 110 & 107 -- $1.55
Offering Memorandum - Steve Economos 28,908 1974 $1.55

4.98 35%
Comments:
5 Optum Care December-20 12,036 NNN $3.50 1501 W. Commonwealth Ave. 120 $0.00 -- --
Fullerton, CA 92833 Optum -- $3.50
CoStar - Russell Bakhtiari 12,115 Renovated 2020 $3.50

4.70 32%
Comments: This is a stand-alone health care and social assistance building that sold in July 2021 for $6,255,000at a reported cap rate of 7.68%. The lease is for 10-years with an initial rent of $3.50 psf triple net. The building was built in 1956and renovated in 2020and has 12,036sf of rentable area on 0.87 acres of land. The property has 57 parking spaces and a parking ratio of 4.70:1.

This is a stand-alone medical urgent care building. The lease is for 5-years with an initial rent of $4.40 psf modified gross (landlord pays property taxes, insurance, trash & maintenance but not janitorial or utilities). The building was built in 1948 of masonry construction that has been seismically retrofitted. It has average quality and good condition. It has 10,032sf of rentable area on 0.52 acres of land.

The property has 24 parking spaces and a parking ratio of 2.39:1.

This is a stand-alone medical building with 8 tenants. The RAI Care Center lease is for a remaining term of 83 months plus two 5-years options to extend the lease.

The current rent for the two suites is an average of $1.82 psf modified gross (landlord pays property taxes, insurance, trash & maintenance but not janitorial or utilities). The building was built in 1948of wood frame & stucco construction. It has average quality and good condition. It has 28,908 sf of rentable area on 1.89 acres of land. The property has 144 parking spaces and a parking ratio of 4.98:1.

Summary of Rental Comparables
This is a stand-alone medical skin care building. The lease is for 3-years with an initial rent of $2.55 psf triple net. The building was built in 1981of wood frame & stucco construction. It has good quality and good condition. It has 6,953 sf of rentable area on 0.32 acres of land. The property has 27 parking spaces and a parking ratio of 3.88:1.

This is a stand-alone medical care dialysis building. The lease is for 5-years with an initial rent of $4.40 psf modified gross (landlord pays property taxes, insurance, trash & maintenance but not janitorial or utilities). The building was built in 1948 of masonry construction that has been seismically retrofitted. It has average quality and good condition. It has 10,032sf of rentable area on 0.52 acres of land.

The property has 24 parking spaces and a parking ratio of 2.39:1.

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 56

Photographs of Comparable Rentals

Rental Number One (google maps photo)

Rental Number Two (listing photo)

Rental Number Three (goole maps photo)

Rental Number Four (listing photo)

Rental Number Five

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 57

Market Rent Analysis

Our analysis of the comparable rentals considers features of comparison that a knowledgeable buyer in the subject marketplace would consider.

Our survey indicated that single-tenant Medical Centers like the subject located in the subject market area are typically leased on a Triple Net (NNN) expense basis. Under a Triple Net type of lease, the tenant is responsible for most of the property’s operating expenses including real estate taxes and assessments, insurance, utilities, and maintenance expenses, and the property owner is responsible for the management and reserves.

In analyzing the market data, we considered the features of comparison deemed most important in the subject market, adjusting as deemed necessary to reach a defensible opinion of value for the subject property. These include condition of lease, marke t conditions at the time of lease, location, quality and condition, unit size, tenant build-out, parking ratio, and other features of comparison that would impact the prices paid.

We have opted to utilize an adjustment matrix in completing our analysis.

SUBJECT ONE TWO THREE FOUR FIVE
EFFECTIVE RENT PSF N/A $2.55 $3.72 $3.00 $1.82 $3.50
Condition of Lease Conventional
Adjusted $ psf N/A $2.55 $3.72 $3.00 $1.82 $3.50
Δ In Market Conditions January-22
Adjusted $ psf N/A $2.55 $3.72 $3.00 $1.82 $3.50
General Location Fullerton
Specific Location Commonwealth -5% -5% -5% -5%
Unit Area (sf) 23,778 -5% -2% -5% -2% -2%
Quality Average +
Condition Good 5%
Effective Age 1968/2020 5% 5%
Parking Ratio 1.05 -2% -2% -2% -5% -5%
Site Coverage Ratio 53% -2% -2% -2% -2%
Subtotal of Adjustments N/A -9% -6% -14% -9% -7%
FINAL INDICATORS N/A $2.32 $3.50 $2.58 $1.66 $3.26
Total % Adjustment N/A -9% -6% -14% -9% -7%
Overall Comparison N/A

RENT MATRIX
APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 58

Discussion and Analysis

Market Conditions (Time)
We have considered the PWC 4th Quarter 2022 Net Lease Investment investor comments which state: The outlook for market rent change remains static. In addition, half of investors are using free rent of up to nine months with an average of three months on a ten -year lease. The average forecast market rent change falls to 0%. Therefore, no time adjustment is warranted.

Rental One - $2.55 PSF
Downward adjustments were made for specific location (M iddle Income area), its smaller size (economies of scale), parking ratio of 3.88:1, site coverage ratio is superior to the subject . The interior condition is average and rated inferior to the subject. The building was built in 1981 and is rated similar in its effective age.

Adjusted Rate PSF - $2.32 NNN

Rental Two - $3.72 PSF
Downward adjustments were made for specific location (Middle Income area), its smaller size (economies of scale), parking ratio of 2.39:1, site coverage ratio is superior to the subject. The interior condition is good and rated similar to the subject. Th e building was built in 1948 and is rated inferior in its effective age.

Adjusted Rate PSF - $3.50 NNN

Rental Three - $3.00 PSF
Downward adjustments were made for specific location (Middle Income area), its smaller size (economies of scale), parking ra tio of 2.25:1, site coverage ratio is superior to the subject. The interior condition is good and rated similar to the subject. The building was built in 1990 and is rated similar in its effective age.

Adjusted Rate PSF - $2.58 NNN

Rental Four - $1.82 PSF
Downward adjustments were made for specific location (M iddle Income area), its smaller size (economies of scale), parking ratio of 4.98:1, and site coverage ratio of 35%. The building was built in 1974 and is rated inferior in its effective age.

Adjusted Rate PSF - $1.66 NNN

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 59

Rental Five - $3.50 PSF
Downward adjustments were made for its smaller size (economies of scale), parking ratio of 4.70:1, and site coverage ratio of 32%. The building was renovated in 2020 and is rated similar in its effective age.

Adjusted Rate PSF - $3.26 NNN
Range of Rental Unit Value Indicators
The comparable rentals indicated the following ranges of rental values:

Market Rent Conclusion Space

Overall, the rental comparables indicate an adjusted range of $1.66 psf to $3.50 psf per month on a Triple Net (NNN) basis. Each of the comparables was given consideration in this analysis study with most weight given to Comparable s One and Three free standing buildings located within a Middle Income neighborhood which range from $2.32 to $3.26 per square foot. The subject’s rent is currently $1.93 psf Triple Net, with a lease expiration of February 28, 2035. The next rent increase is March 1, 2023, at $2.90 psf NNN. For purposes of this analysis, we have used the March 1, 2022, contract rent of $1.93 psf NNN in our Rent Roll and our Lease-by-Lease Analysis.
.

Based on our analysis, it is our opinion that the market rental rate for the subject property is towards the lower-end of the adjusted range indicated by comparables rental data one and three or approximately $2.50 per square foot per month on Triple Net (NNN) basis.

Based on the data and analysis presented, the table below presents our opinion of Market Rent, as of the previously stated date of valuation.

Market Rent Conclusion
$2.50 psf per month Triple Net Basis

A reconstructed rent roll for the subject property is presented on the following page.

Unadjusted Adjusted
Minimum: $1.82 $1.66
Maximum: $3.72 $3.50
Range: $1.90 $1.84
Rental Rates - $/PSF
APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 60

Rent Roll

Contract Market
Remaining Monthly Rent Rent
Unit Tenant (SF) (SF) Start Date End Date Lease Type Months Rent $/PSF/Mo $/PSF/Mo Illumination
Foundation 23,778 0 100.0% 3/1/2020 2/28/2035 NNN 148.7 $45,938 $1.93 NNN $2.50 NNN Occupied 23,778 100.0% Contract $45,938 $1.93 NNN --
Vacant 0 0.0% Market $59,445 $2.50 NNN --
Total 23,778 100.0%

RECONSTRUCTED RENT ROLL
CURRENT OCCUPANCY CONTRACT VS MARKET INCOME (Fully Occupied) Occupied
Bldg Area
Vacant Blg
Area
Percentage
of Total Bldg
Area
APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 61

Vacancy and Collection Loss

This is a triple net investment to Illumination Foundation , according to local real estate commercial brokers, vacancy rates for net leased investments typically range from 0% to 2%; therefore, we are using a vacancy rate and collection loss of 2%.

Historical Operating Statements

We were not provided with a historical operating statement for the subject property.

Pro Forma Income and Expense Analysis3

Income: The subject’s potential gross income (PGI) is projected based on the our estimated Market Rental Income.

Expense Recoveries:

Tenant expense reimbursements are based on the Triple Net (NNN) expense basis.

Vacancy:

We have applied an allowance for vacancy and collection loss of 2.0%.

OPERATING EXPENSES:

Real Estate Taxes

In conformance with California’s Proposition 13 Tax Initiative, property taxes are estimated based on the appraised value of the subject as though a sale had occurred and its current tax rate of

1.08039%.

Direct Assessments $3,747 per year
Insurance Tenant Pays

Utilities: Tenant Pays
Trash Removal: Tenant Pays
Repairs and Maintenance: Tenant Pays

Lawn Maintenance Tenant Pays
Management Management fees, which are accounted for as a percentage of EGI, typically range from 3% to 5%. Give n the nature of the subject and the level of management duties required, we have used a management allowance of 3.0%, which is consistent with industry standards.

Reserves We have used $0.10 psf for Reserves.

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 62

Capitalization Rate Analysis

The table below shows the sources of information that we used to determine an appropriate capitalization rate for the subject property.

Capitalization Rate Selection
Source Cap Rate Indication Comments
Published Sources 5.00% to 7.50%

6.23% avg.

PwC Real Estate Investor Survey – National Net
Leased Investments Market – 4th Qtr. 2022
Sales Data 7.63% to 8.00%

Cap rates from sales in the Sales Comparison
Approach are limited.

Supplemental Sales Data 5.24% to 7.68%

5.88% avg.

Cap rates from supplemental Medical Office
sales in the broader marketplace shown below.

Reconciliation and Conclusion of Appropriate Capitalization Rate As a result of the analysis, it is our opinion that the average cap rate from the comparables and supplemental sales are a good representation for the subject property. We have used a base capitalization rate of 7.00% in converting the net operating income of the subject property into a value estimate for the subject property.

Cap Rate Conclusion 7.00% Greatest weight is given to the Sales Comparables and Supplemental Sales.

Optum $6,255,000 12,036 sf 7.68%
1501 W. Commonwealth Ave.

Fullerton, CA 92833
DaVita Dialysis $8,400,000 11,499 sf 5.19%
721 W. 1st St.

Tustin, CA 92780
DaVita Dialysis $8,359,500 12,438 sf 5.24%
2111 N Garey Avenue
Pomona, CA 918767
DaVita Dialysis $4,950,500 9,000 sf 5.41%
8080 Limonite Avenue
Jurupa Valley, CA 92509
Sales Comparables
APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 63

Pro Forma Operating Statement and Direct Capitalization

Property Address
Building Area (NRA) 23,778 SF
INCOME
Total $ $/Sq. Ft. % of EGI Minimum Maximum
Contract Income 23,778 SF @ $2.50 /Mo. $713,340 $30.00
Reimbursement Income $107,222 $107,222 $4.51
POTENTIAL GROSS INCOME $820,562 $34.51
Less Vacancy/Collection Loss 2.0% ($16,411) ($0.69)
EFFECTIVE GROSS INCOME $804,150 $33.82 100.0% $0.00 $0.00

OPERATING EXPENSES
Real Estate Taxes $103,475 $4.35 12.9% $0.00 $0.00
Direct Assessmets $3,747 $0.16 0.5% N/A N/A
Insurance $0 $0.00 0.0% $0.00 $0.00
Utilities $0 $0.00 0.0% $0.00 $0.00
Trash $0 $0.00 0.0% $0.00 $0.00
Repairs/Maintenance $0 $0.00 0.0% $0.00 $0.00
Lawn Maintenance $0 $0.00 0.0% $0.00 $0.00
Management $24,125 $1.01 3.0% $0.00 $0.00
Reserves $2,378 $0.10 0.3% $0.00 $0.00
TOTAL OPERATING EXPENSES $133,724 $5.62 16.6% $0.00 $0.00 NET OPERATING INCOME $670,426 $28.20 83.4% N/A N/A
NET OPERATING INCOME $670,426

7.00%
$9,577,521
$9,580,000
FEE SIMPLE - PRO FORMA - (based on Market Rent)
3535 W. Commonwealth

PROFORMA INCOME & EXPENSE
Annual Indicators Historical Annual $/SF
OAR
Direct Capitalization
Market Value - Income Approach (Rounded)
APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 64

Income Capitalization Approach Conclusion

Based on the data and analysis previously presented, it is our opinion that the following value is indicated for the subject property according to the Income Capitalization Approach.

Value Conclusion – Income Approach
Value Conclusion $9,580,000

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 65

RECONCILIATION

Our valuation analysis presented in this appraisal report concluded to the following opinion:

Valuation Approach Value Conclusion
Sales Comparison Approach $11,000,000
Income Capitalization Approach $9,580,000

The Sales Comparison Approach can be a strong indicator of value when there is an adequate number of comparable property sales that are like the subject in physical, functional, economic and location characteristics. This approach is weakened when the quantity or nature of available m arket data is insufficient for purposes of direct comparison.

We used sales comparables to support our analysis using the Income Approach.

The Income Capitalization Approach considers the future expectations of investors for properties such as the subject . It considers current market rental activity and rate -of-return requirements through the selection of a market -derived overall capitalization rate. This approach is most relevant when there are sufficient rental comparables from which to draw market rent conclusions and adequate market data from which to determine market cap rate requirements.

We have considered the Income Capitalization Approach and the Sales Comparison Approach based on current market practice for properties such as the subject which are investment properties.

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 66

CONCLUSION

Our research indicates that the Income Approach should be given primary consideration in our final estimate of value for the subject property.

Therefore, based on the data and analysis above, the table below presents our final valuation conclusion(s) of the stated ownership interest, as of the stated date(s) of valuation.

Valuation
Premise
Interest
Appraised
Effective Date
of Value
FINAL
Value
Conclusion
Market Value Leased Fee 12/12/2022

$10,000,000

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 67

ANALYSIS OF “AS IS” LEASED FEE INTEREST

Based on the Market Rental analysis presented previously in the Income Approach section of this report, the Contract Rental income at the subject property is below our previously estimated current Market Rental income. We will now use a Lease -by-Lease analysis to determine the impact this rental disparity over the remaining lease term(s) has on the value of the Leased Fee Interest in the subject.

We have utilized a Discount Rate of 6.00% based on the minimal risk associated with collecting the below- market contract income over the remaining lease term or a Discount Rate of 12.00% based on the high risk associated with collecting the above-market contract income over the remaining lease term.

Our Calculation of the “As Is” Leased Fee value (based on Contract Rent) is as follows:

Analysis of “As Is” Leased Fee Interest
Fee Simple Conclusion $10,000,000
Minus: Leased Fee Disadvantage (rounded) -$1,420,000
Value Conclusion – “As Is” Leased Fee $8,580,000

Our valuation analysis presented in this appraisal report concluded to the following opinion:

CONCLUSION

Based on the data and analysis above, the table below presents our final valuation conclusion(s) of the stated ownership interest, as of the stated date(s) of valuation.

Valuation
Premise
Interest
Appraised
Effective Date
of Value
FINAL
Value
Conclusion
Market Value As Is Leased Fee 12/12/2022

$8,580,000

LEASE-BY-LEASE EXAMINATION OF RENTAL DISPARITIES As of Date 12/12/2022 Below Market Yield Rate: 6.00%
Above Market Yield Rate: 12.00%
Suite Actual Market # Months Mo. Rental P.V. of
Tenant Area Rent Rent Disparity Remaining Disparity P.V. Factor Disparity Illumination Foundation 23,778 $1.93 $2.50 ($0.57) 149 ($13,507.50) 105.2580 ($1,421,772) TOTAL: 23,778 sf ($1,421,772)
ROUNDED: ($1,420,000)
APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 68

EXPOSURE TIME

Exposure Time is defined as "The estimated length of time the property interest being appraised would have to have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal.”

Months on Market – Comparable Sales

Sale Address Days on Market
1 645 S. Beach Blvd. Off Market Sale
2 2025 N. Bush St. Off Market Sale
3 919 Sunset Ave. Off Market Sale
4 801 Cypress Way Off Maket Sale
5 312 N. Roosevelt Ave 350 days
Additional Sales
7571 Westminster Blvd.

Westminster

60 days

Price Waterhouse (PWC) reported a range from 2 months to 18 months with an average of 6.3 months.

It is our opinion that a reasonable exposure time estimate for the subject property is 6 to 9 months.

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 69

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 val ue 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.
• Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. • The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Code of Profe ssional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute.
• The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
• As of the date of this r eport, Joe J. Villegas and David Rosenthal, MAI have completed the continuing education program for designated members of the Appraisal Institute. • We have had ample experience with the subject property type and marketplace, and we possess the requisite knowledge to perform this appraisal assignment competently. • Joe J. Villegas, MAI and Naomi Jean Bonner have made a personal exterior inspection of the property that is the subject of this report . David Rosenthal, MAI, FRICS has not made a personal inspection of the property that is the subject of this report.
• Joe J. Villegas, MAI has performed the selection of comparable properties, collection and verification of data, and preliminary analysis. David M. Rosenthal, MAI, FRICS has reviewed and approved the f inal selection of comparable properties, and the final analysis and conclusion of value. Naomi Jean Bonner assisted with writing the front end of the report. Other than those mentioned, no one provided significant real property appraisal assistance to the person(s) signing this certification.

• We have performed services as of December 20, 2021 , as appraisers, regarding the property that is the subject of this report and within the three -year period immediately preceding acceptance of this assignment.

Joe J. Villegas, MAI
CA #AG004648
[email protected]
David M. Rosenthal, MAI, FRICS
CA #AG001641
[email protected]

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 70

ADDENDA

DEFINITIONS

GENERAL ASSUMPTIONS AND LIMITING CONDITIONS

APPRAISER QUALIFICATIONS AND LICENSES

PARTIAL LIST OF CLIENTS

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 71

Definitions

Definitions are cited from The Dictionary of Real Estate Appraisal, 5th ed. (Chicago: Appraisal Institute, 2010), published by the Appraisal Institute, unless otherwise noted)

Appraisal – “1. The act or process of developing an opinion of value. 2. An opinion of value.”

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.”

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.” (USPAP 2018-2019)

Fair Market Value - "The price at which the property would change hands between a willing buyer and willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts.” (IRS Regulations 26 CFR 20.2031-1b and 26 CFR 25.2512-1)

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.”

Ground Lease – “A lease that grants the right to use and occupy land. Improvements made by the ground lessee typically revert to the ground lessor at the end of the lease term.”

Hypothetical Condition – “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.” (USPAP 2018-2019)

Leased Fee Estate – “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 Estate – “The tenant’s possessory interest created by a lease.”

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)."

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 72

Market Value - The following definition of Market Value is used by agencies that regulate federally insured financial institutions in the United States (U.S. Code Title 12, CFR Banks and Banking, Part 323.2 as published in the Federal Register):

"The most probable pr ice 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 is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:
a. buyer and seller are typically motivated.
b. both parties are well -informed or well -advised, and acting in what they con sider their best interests.
c. a reasonable time is allowed for exposure in the open market. d. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and
e. 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.”

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.”

Retrospective Value Opinion – “A value opinion effective as of a specified historical date. The term does not define a type of value. Instead, it identifies a value opinion as being effective at some specific prior date. Value as of a historical date is frequently sought in connection with property tax appeals, damage models, lease renegotiation, deficiency judgments, estate tax, and condemnation. Inclusion of the type of value with this term is appropriate, e.g., “retrospective market value opinion.”

Sandwich Leasehold Estate – “The interest held by the original lessee when the property is subleased to another party; a type of leasehold estate.”

Stabilized Occupancy – “An expression of the expected occupancy of a property in its particular market considering current and forecasted supply and demand, assuming it is priced at market rent.”

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 73

General Assumptions and Limiting Conditions

This appraisal report has been made with the following General Assumptions:

1. No responsibility is assumed for the legal description or for matters including legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated.

2. The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated.

3. Responsible ownership and competent property management are assumed.

4. The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy.

5. All engineering is assumed to be correct. The plot plans and illustrative material in this report are included only to assist the reader in visualizing the property.

6. It is assumed that there are no hidden or apparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them.

7. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless noncompliance is stated, defined, and considered in the appraisal report.

8. It is assumed that there is compliance with all applicable zoning a nd land use regulations and restrictions unless nonconformity has been stated, defined, and considered in the appraisal report.

9. It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based.

10. It is assumed that the utilization of the land and improvem ents is within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report.

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 74

This appraisal report has been made with the following General Limiting Conditions:

1. The distribution, if any, of the total valuation in this report between land and improvements, applies only under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used.

2. Possession of this report, or a copy thereof, does not carry with it the right of publication.

3. The appraisers, by reason of this appraisal, are not required to give further consultation, testimony, or be in attendance in court with reference to the property in question, unless arrangements have been previously made.

4. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraisers, or the firm with which the appraisers ar e connected) shall be disseminated to the public through advertising, public relations, news, sales, or other media without the prior written consent and approval of the appraiser.

5. Any value estimates provided in the report apply to the entire property, a nd any proration or division of the total into fractional interests will invalidate the value estimate unless such proration or division of interests has been set forth in the report.

6. The appraisers assume that the reader or user of this report has been p rovided with copies of available building plans and all leases and amendments, if any, encumbering the property.

7. No survey was furnished so the appraisers relied on the assessor’s plat map to ascertain the physical dimensions and acreage of the subject pr operty. Should a survey prove these characteristics inaccurate, it may be necessary for this appraisal to be adjusted.

8. The forecasts, projections, or operating estimates contained herein are based upon current market conditions, anticipated short -term supply and demand factors, and a continued stable economy. These forecasts are, therefore, subject to changes in future conditions.

9. Complete building plans and specifications were not available for use in the preparation of this appraisal. The analysis, therefore, is subject to review of the final plans and specifications when available.

10. Any proposed improvements are assumed to have been completed unless otherwise stipulated.

Any construction is assumed to conform to the building plans referenced in the report.

11. Since earthquakes are not uncommon in the area, no responsibility is assumed due to their possible effect on individual properties, unless detailed geologic reports are made available.

12. No termite inspection report was available. The appraisers person ally inspected the subject property and found no significant evidence of termite damage or infestation. No guarantee that none exists, however, should be construed.

13. No consideration has been given in this appraisal to the value of property considered by t he appraisers to be personal, located on the premises, or the cost of moving/relocating such personal property. Only the real estate has been considered.

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 75

14. In this appraisal assignment, the existence of potentially hazardous materials used in the construction or maintenance of the building, such as the presence of asbestos or urea formaldehyde foam insulation, and/or the existence of toxic waste, which may or may not be present on the property, has not been considered. The appraisers are not qualified to detect such substances. We urge the client to retain an expert in the field if desired.

15. Unless otherwise stated, no responsibility is assumed for any damage sustained in connection with actual or potential deficiencies or hazards such as, but not limited to, inadequacies or defects in the structure, design, mechanical equipment or utility services associated with the improvements, air or water pollution, lead paint, noise, flooding, storms or wind, traffic and other neighborhood hazards, radon gas, asbestos, natural or artificial radiation, or hazardous materials or toxic substances of any description, whether on or off the property appraised. The appraisers are not qualified to detect hazardous waste or materials on, in or under the land or the improvements. Such a determination requires the investigation of a qualified expert in hazardous materials and assessment. In this appraisal assignment, the existence of potentially hazardous material used in the construction or maintenance of the building, such as the presence of asbestos or urea formaldehyde foam insulation, and/or existence of toxic waste, which may or may not be present on the property, has not been considered. The appraisers are not qualified to detect such substances. We urge the client to retain an expert in this field if desired.

16. The Americans with Disabilities Act (ADA) became effective January 26, 1992. We have not made a specific survey or analysis of the subject property to determine whether the physical aspects of the improvements meet the ADA accessibility guidelines. Since compliance matches each owner’s financial ability with the cost -to-cure the property’s potential physical characteristics, the real estate appraiser cannot comment on compliance with ADA. A summary of the subject’s physical aspects is included in this report; however, this does not suggest ADA compliance by the current owner. Given that compliance can change with each owner’s financial ability to cure non - accessibility, the value of the subject does not consider possible non-compliance. Specific study of both the owner’s financial ability and the cost -to-cure any deficiencies would be needed for the Department of Justice to determine compliance.

17. The appraisers made no engineering survey of the subject property. Except as specifically stated, data relative to size and area has been taken from sources considered reliable, but no guarantee of accuracy is expressed or implied. Interested parties should retain a surveyor or other qualified professional for exact measurements of the subject property.

SPECIAL ASSUMPTIONS AND CONDITIONS

The applicability of Extraordinary Assumptions, Hypothetical Conditions or Special Limiting Conditions is addressed in the Scope of Work section of this report.

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 76

Appraiser Qualifications

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 77

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 78

Current Appraiser License

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 79

Professional Qualifications of DAVID M. ROSENTHAL, MAI, FRICS

PROFESSIONAL DESIGNATIONS

Appraisal Institute
MAI Member, Appraisal Institute (MAI #8024)
Member of the Regional Ethics & Counseling Panel, 1994-1997, 2000-2003

Royal Institution of Chartered Surveyors
Fellow of the Royal Institution of Chartered Surveyors, (FRICS #1291058) State of California, Bureau of Real Estate Appraisers
Certified General Real Estate Appraiser (#AG001641)

EDUCATION

Master of Management Degree (MBA), 1980
J.L. Kellogg Graduate School of Management, Northwestern University, Evanston, Illinois - Concentrations in Finance and Accounting

Bachelor of Science Degree, 1978
University of Florida, Gainesville, Florida
Major in Business Administration - concentration in Finance

EXPERIENCE

CURTIS - ROSENTHAL, Inc., 1983 to present – President & CEO Founding principal of regional commercial real estate appraisal and consulting firm.

Perform field appraisals and review appraisals for: Commercial Mortgage Lenders (Banks, Life Insurance Companies, CMBS, Pension Funds), Public Agencies (City Governments, Transit Agencies), Law Firms (Real Estate Litigation, Estate and Trust, Lease Negotiation), Corporations (Valuation for Financial Reporting), and Accounting Firms. Properties appraised include: retail, office, industrial, apartments, condominiums, mixed-use, special purpose, and vacant land. Areas of experience include southern and northern California, Arizona and Nevada.

Security Pacific National Bank, 1981-1982 - Corporate Loan Officer Responsible for portfolio of loans consisting primarily of real estate companies. Projects financed included construction and renovation of income properties and development of new residential tracts.

EXPERT WITNESS

Accepted as an expert witness in the following courts:

Federal Bankruptcy Court - California Central District
Superior Court - Los Angeles County and Orange County
Municipal Court - Orange County

INSTRUCTOR

Loyola Marymount University, 1987 - 2016
College of Business Administration, Finance Department - Guest Instructor

Federal Reserve Bank of San Francisco, 2015
Risk Connection 2015, Risks with Construction Development Lending-Guest Trainer

University of California at Los Angeles, 1988
UCLA Extension, Financial Institutions Management Program - Guest Instructor APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 80

Professional Qualifications of DAVID M. ROSENTHAL, MAI, FRICS (Cont’d)

PROFESSIONAL AFFILIATIONS
Appraisal Institute, 1989-present
Strategic Planning Committee, Chairman 2014
IRS Valuation Summit, Los Angeles, Conference Co-Chair 2013; Washington D.C., Planning Committee 2014 California Bankers Association, Affiliate Member 2009-present California Mortgage Bankers Association (CMBA), Affiliate Member, 2001-2014, 2017, 2018 Planning Committee for Commercial Real Estate Finance Conference, 2003–2014 Entrepreneurs Organization (EO, formerly YEO/WEO), 1997 to 2007 International Council of Shopping Centers (ICSC), 2011, 2017 Los Angeles Economic Development Corporation, 2004
Los Angeles Estate Planning Council (LAEPC), 2009-present; Program Chair 2009-2010 Los Angeles Mortgage Association (LAMA), Co-Founder, Co-Chair 2000–present Royal Institution of Chartered Surveyors, 2010-present
Society of Chief Appraisers (SCA), Planning Committee, 2009-present Southern California Real Estate Alliance (SCREA), 1987-present; Co-Chair 1995-1996, 2003 Western Independent Bankers, Affiliate Member 2009-2011

SPEAKING ENGAGEMENTS
Appraisal Institute
IRS Valuation Summit, Conference Co-Chair 2013; Moderator-Partial Interest Valuation Panel 2013, 2014 Western Regional Conference, 1996-1999
SF Bay Area Fall Conference, 1998
California Bankers Association, Chief Credit Officers Symposium, 2008-2010 California Bar Association, Real Property Law Section, 2011 California Mortgage Bankers Association, Commercial Real Estate Finance Conference, 2003-2009, 2014 California CPA Education Foundation, 1998
CREFC Capital Markets Conference, 2014
Crittenden National Conference, 2009
ICSC/LAMA Capital Markets Conference, 2011-2012
IMN Troubled Assets Conference, 2010
Institute of Management Accountants, 1997
International Right of Way Association, IRWA/AI Joint Conference, 2002, 2008 Los Angeles Estate Planning Council, 2009
National Council of Real Estate Investment Fiduciaries (NCREIF), National Conference, 2005 Society of Chief Appraisers 2009-2015
Special Assets Management Association, 2010-2012
Western Independent Bankers, Troubled Asset Forum, 2009, 2011

PUBLICATIONS
California Mortgage Bankers Association Legal News
Valuation Clauses in Leases, Ground Leases and Purchase Options, September 2011 California Mortgage Finance News
Silicon Beach, The New Frontier, September 2015
Life Company Risk-Based Capital for Commercial Mortgages, September 2013 Understanding the New Interagency Appraisal and Evaluation Guidelines, May 2011 California Real Estate Journal
Telling the Story – A Solutions Approach to Appraisal, September 2003 Real Estate News Television (RENTV.com)
Economic Update, Regular Column 2002 to 2015
Real Estate Southern California
What Happened to CMBS? September 2007
The ABC’s of CDO’s, September 2006
The CMBS Market Comes of Age, March 2006
Real Estate Cycles – A Long Term Perspective, September 2005 Western Independent Bankers – Lending and Credit Digest Evaluations in Compliance with the Interagency Appraisal and Evaluation Guidelines, June 2012 Assessing Collateral Values, October 2010
Commercial Bank Appraisal Administration, July 2010
APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 81

Current Appraiser License

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 82

Partial List of Clients Served

COMMERCIAL BANKS

American Continental Bank
Americas United Bank
Bank of America
Bank of Manhattan
Bank of Hemet
Bank of the Ozarks
Bank of Santa Clarita
Bank of the West
Bank One Arizona
BofI Federal Bank
Borel Private Bank & Trust Co.

Boston Private Bank & Trust Co.

Builders Bank
California Business Bank
Capital One Bank
Cathay Bank
Centennial Bank
Citigroup
Citizens Business Bank
City National Bank
City State Bank
Coast National Bank
Community Bank
CTBC Bank
Eastern International Bank
East West Bank
EverTrust Bank
Far East National Bank
Farmers and Merchants Bank
FDIC
First Commerce Bank
First Foundation Bank
First General Bank
First National Bank of Northern California
First National Bank of Southern California
First Republic Bank
Grandpoint Bank
Greater Bay Bancorp
Habib American Bank
Hanmi Bank
Heritage Oaks Bank
Independence Bank
JP Morgan Chase Bank
Key Bank
Korea Exchange Bank
La Jolla Bank
Luther Burbank Savings Bank
Macquarie Bank
Marshall & Isley Bank
Mellon First Business Bank
Mercantile National Bank

MidFirst Bank
Mission Bank
Mission Valley Bank
NARA Bank
National Bank of California
Northern Trust Bank
Pacific Alliance Bank
Pacific Capital Bancorp
Pacific City Bank
Pacific Commerce Bank
Pacific Mercantile Bank
Pacific Premier Bank
Pacific Western Bank
Philippine National Bank
Popular Community Bank
Preferred Bank
Premier Business Bank
Premier Commercial Bank
Provident Bank
Provident Savings Bank
Rabobank
Regents Bank
Royal Business Bank
Saehan Bank
Security Bank of California
Silvergate Bank
Sunwest Bank
The Private Bank of California
United Business Bank
Universal Bank
US Bancorp
US Metro Bank
Vibra Bank
Wells Fargo Bank
Wilshire Bank
Zions Bank

CREDIT UNIONS

Altura Credit Union
American First Credit Union
California Coast Credit Union
California Credit Union
Extensia Financial
Kinecta Federal Credit Union
LA Fireman’s Credit Union
Mission Federal Credit Union
NuVision Credit Union
Orange County’s Credit Union
Premier America Credit Union
Southland Credit Union

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 83

Partial List of Clients Served (Cont)

INSURANCE COMPANIES

AEGON USA
Allianz Life Insurance Company
Allstate Investments, LLC
American Equity Investment Life Insurance Co.

American National Insurance Company
American United Life Insurance Company
Assurant Inc.

Chubb Group of Insurance Companies
Columbian Mutual Life Insurance Company
Genworth Financial
Golden State Mutual Life
Great West Life Insurance Company
Hartford Insurance Company
Home Life Insurance Company
IDS Life Insurance Company
ING Life Insurance Company
John Hancock Real Estate Finance
Kansas City Life Insurance Company
Lafayette Life Insurance Company
Lincoln National Life Insurance Company
MetLife Capital Financial Corporation
Nationwide Insurance Company
Principal Global Investors
Protective Life Insurance Company
Prudential Mortgage Capital
Riversource
Southern Farm Bureau Life Insurance
Stancorp Mortgage Investors, LLC
State Farm Insurance Company
Sun Life Insurance Company
SunAmerica Insurance Company
Symetra Financial
Thrivent Financial for Lutherans
Union Central Life Insurance Company
Union Labor Life Insurance Company
United Farm Family Life Insurance Company
United Olympic Life Insurance Company
United Security Insurance Company

MULTI-FAMILY LENDERS

ABN/AMRO Apartment Lending
Ameriprise Financial
Amerisphere Multi-Family Finance
Arbor National Mortgage
Beech Street Capital
Centerline Capital Group
CW Capital
Deutsche Bank Mortgage Capital
Mark One Capital, Inc.

PNC/ARCS Commercial Mortgage
Prudential Huntoon Paige
Walker & Dunlop

COMMERCIAL MORTGAGE BANKERS/ BROKERS

Alison Mortgage Company
Amherst Real Estate Capital
Balboa Financial
Barry S. Slatt Mortgage Company
Berkadia Commercial Mortgage
Bond Street Capital
Buchanan Street Partners
Burnham Capital Markets
Cohen Financial
George Elkins Mortgage Banking Company
George Smith Partners, Inc.

Grandbridge Real Estate Capital
Highland Realty Capital, Inc.

Holiday Fenoglio Fowler, LP
iCap Realty Advisors
Koss Financial Corporation
Love Funding Corporation
Marcus and Millichap Capital Corporation
Mason McDuffie Financial Corporation
Meridian Capital Group, Inc.

Newmark Realty Capital, Inc.

NorthMarq Capital, Inc.

Pacific Southwest Realty Services
Partners Realty Capital, LLC
Pathfinder Mortgage Corporation
Q10 National Mortgage Co.

Sunrise Mortgage & Investment Company
Terrix Financial Corporation
Walker and Dunlop

PENSION FUNDS / ADVISORS

Alcatel Lucent Asset Management Corp.

American Realty Advisors

CALPERS
California State Teachers Retirement System
Construction Laborers Pension Trust
Crosson Dannis, Inc.

Emerson International
Equitable Real Estate Investment Mgt., Inc.

Essex Property Trust
Guggenheim Trust Company, LLC
Heitman/JMB Institutional Realty Advisors
J.P. Morgan Investment Management
Olympic Realty Advisors
Principal Real Estate Investors
Standard Management Company

APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 84

Partial List of Clients Served (Cont)

CMBS SPECIAL SERVICERS

C-III Asset Management, LLC
Key Bank
LNR Partners, LLC
Midland Loan Services
Helios AMC, LLC
Berkadia Commercial Mortgage
TriMont Real Estate Advisors

CMBS LENDERS

Barclays Capital Real Estate, Inc.

Bridger Commercial Funding
CIBC World Markets Corp.

Credit Suisse
CW Capital
Deustchebanc Mortgage Capital
JP Morgan Mortgage Capital
Key Commercial Mortgage
Morgan Stanley
Natixis Real Estate Capital, Inc.

RBS Greenwich Capital
Redwood Trust
UBS Securities, LLC

CORPORATIONS

Alta Hospital System
ATT Wireless Services, Inc.

Best California Gas Co.

Bridgestone Retail Operations
Brotman Hospital
California Sports, Inc.

Chevron Oil Company
Getty Oil Company
IMAX Corporation
Los Angeles Orthopedic Hospital Foundation
Mercury Air Cargo, Inc.

Mobil Oil Corporation
Neiman-Marcus Group, Inc.

Pandemic Studios
Rite Aid Corporation
Safeway Corporation
Salvation Army
Santa Monica Home Owners Corporation
Thrifty Oil Company
Wal-Mart Stores, Inc.

Whirlpool Financial Corporation

PUBLIC AGENCIES

California Housing Finance Association
Carson Redevelopment Agency
City of Adelanto
City of Chino
City of Colusa
City of Gardena
City of Grand Terrace
City of Inglewood
City of Los Angeles
City of Montebello
City of Norco
City of Palos Verdes
City of Pasadena
City of Rialto
City of Riverside
City of San Louis Obispo, Housing Authority
City of San Mateo
City of Santa Monica
City of Vernon
City of Whittier
City of Yukaipa
Coachella Valley Mountains Conservancy
Compton Unified School District
Consulate General of Poland
County of San Mateo
Inglewood Redevelopment Agency
Inglewood Unified School District
Los Angeles Community College District
Los Angeles Housing Department
Los Angeles Unified School District
Los Angeles World Airports (LAWA)
Metropolitan Transit Authority (MTA)
Mountains Recreation & Conservation Authority
Newport Harbor Nautical Museum
Oakland Community Housing, Inc.

Philippine Consulate
Rosamond Community Services District
San Fernando Valley Economic Development Corp.

Santa Monica College
Santa Monica-Malibu Unified School District
Simi Valley Unified School District
The Port of Long Beach
The Port of Los Angeles
US General Services Administration
US Postal Service
APPRAISAL REPORT: 3535 W. Commonwealth Ave., Fullerton, CA 92833 Page 85

Partial List of Clients Served (Cont)

PARTIAL LIST OF CLIENTS SERVED 1 of 4

ATTORNEYS

Akin Gump Strauss Hauer & Feld, LLP
Allen Matkins Leck Gamble Mallory & Natsis
Arter & Hadden
Barnes & Thornburg LLP
Bird Marella
Booth, Mitchel & Strange, LLP
Brownstein, Hyatt, Farber, Schreck, LLP
Bryan Cave
Burhenn & Gest, LLP
Cadden & Fuller, LLP
Charlston, Revich, & Williams
Chrystie and Berle
Coudert Brothers, LLP
Cox, Castle, & Nicholson
DeCastrow, West, Chodorow, Glickfield & Nass
Engstrom, Lipscomb and Lack
Frandzel Robins Bloom & Csato, LC
Gianelli and Morris
Gibson, Dunn and Crutcher, LLP
Goodson and Wachtel
Greenberg, Glusker, Fields, Claman and Machtinger
Greenberg Traurig
Haight, Brown, & Bonesteel
Hoffman, Saban and Watenmaker
Holt Ney Zatcoff & Wasserman, LLP
Inman, Weisz, & Steinberg
Jeffer, Mangels, Butler, & Mitchell
K&L Gates, LLP
Kane, Ballmer & Berkman
Katten, Muchin, Zavis and Weitzman
King, Holmes, Paterno & Berliner, LLP
Levin & Seligman
Levinson & Lieberman
Loeb and Loeb
Luce, Forward, Hamilton & Scripps LLP
Manatt, Phelps & Phillips, LLP
Marlin and Saltzman
McDermott, Will & Emery
McGuire Woods
McNicholas & McNicholas, LLP
Mindlin and Tigerman
Mitchell, Silberberg, & Knupp, LLP
Morris, Polich and Purdy, LLP
Munger, Tolles, & Olson
Murchison & Cumming
Musick, Peeler & Garrett, LLP
Nixon Peabody, LLP

O’Melvany and Meyers
Orbach Huff Suarez & Henderson, LLP
Parker Milliken
Pillsbury, Madison, and Sutro
Pircher, Nichols, and Meeks
Resch Polster & Berger, LLP
Robinson, Diamant, & Brill
Rodi, Pollock, Pettker, Christian & Pramov
Rucker and Clarkson
Shapiro, Poesell, & Close
Shiotani & Inouye
Sidley and Austin
Smith and Hilbig
Thomashow, Brown and Paiallii, LLP
Tilem and Gole
Troy and Gould
Weinstock Manion
White & Case
Wolf, Rifkin, Shapiro & Shulman
Youngerman and McNutt, LLP

DEVELOPERS

Athena Group, LLC
California Landmark Development
Catellus Development Corporation
Champion Real Estate Services
CIM Group
Cloverfield Group
Combined Properties
Daiwa House Corporation
First City
Goldrich and Kest Industries
Haseko, Inc.

HB Drollinger Company
Held Properties, Inc.

Jamison Services, Inc.

Kennedy Wilson
Koar Development Group, LLC
O&S Holdings
Regency Centers
Roberts Companies
Soboroff Partners
Trammel Crowe