RESTRICTED USE APPRAISAL REPORT REGARDING WEST MAUI HOSPITAL SITE KAANAPALI, MAUI, HAWAII TAX MAP KEY CPR 1, SECOND DIVISION PREPARED FOR

Transcription

1 RESTRICTED USE APPRAISAL REPORT REGARDING WEST MAUI HOSPITAL SITE KAANAPALI, MAUI, HAWAII TAX MAP KEY CPR 1, SECOND DIVISION PREPARED FOR BRIAN H. HOYLE WEST MAUI HOSPITAL FOUNDATION, INC. NEWPORT BEACH, CALIFORNIA MARCH 2017

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4 Brian H. Hoyle, President March 24, 2017 Should the direct construction costs for the subject property differ significantly from that used herein, the market values of the subject property would be different than that estimated herein. This appraisal assumes that infrastructure/site work has been completed, as described herein, by the effective value dates. Details regarding the appraisal are summarized as follows. Client: Intended Use: Intended User: West Maui Hospital Foundation, Inc. Decision making purposes regarding the property. Client Effective Value Dates: March 31, 2017 and August 15, 2018 Market Value 1 - The most probable price that 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: Buyer and seller are typically motivated; Both parties are well informed or well advised, and acting in what they consider their best interests; A reasonable time is allowed for exposure in the open market; Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 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. As Is Market Value 2 The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date. Prospective Opinion of Value 2 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. Scope of Work included the following C.F.R. Part 34.42(g); 55 Federal Register 34696, August 24, 1990, as amended at 57 Federal Register 12202, April 9, 1992; 59 Federal Register 29499, June 7, The Dictionary of Real Estate Appraisal, 6 th Ed. (Chicago, Illinois: Appraisal Institute, 2015). F:\NetworkBackup\Shared Documents\Reports\2017\Hoyle (Maui)\Restricted Use Appraisal Report.docx 2

5 SUBJECT PROPERTY DATA TMK CPR 1 (Second Division) Lahaina, Maui, Hawaii Tax Map Parcel: CPR 1 (Second Division) Land Area: acres ( 221,503 acre ) Location: Improvements: Fee Simple Land Owner: Kakaalaneo Drive, Kaanapali, Lahaina, Maui, Hawaii Vacant Newport Hospital Corporation Ordinances Affecting Land Use and Development: State Land Use: County Community Plan: County Zoning: Federal Flood Insurance Rate Map (FIRM) Panel No F, dated 9/19/2012: Special Management Area (SMA): Urban District PD-3, Project District 3 (Kaanapali North) West Maui Project District 3 (Kaanapali-North Beach Mauka) (formerly R-3, Residential District) Zone X (unshaded): Areas determined to be outside the 0.2% annual chance floodplain. Not located in Special Management Area. Census Tract: Real Property Tax Assessed Values and Estimated Taxes (for Parcel acres): Assessed 100% Land Tax Rate/$1,000 Approximate Year $ $/sq. ft. Building Total Land Bldg. R.P. Taxes 2016 $697,200 $1.07 $0 $697,200 $5.66 $5.66 $3, $715,800 $1.10 $0 $715,800 $5.75 $5.75 $4, $883,100 $1.35 $0 $883,100 $5.86 $5.86 $5, $790,200 $1.21 $0 $790,200 $6.05 $6.05 $4,781 3

6 4 AERIAL PHOTOGRAPH

7 Brian H. Hoyle, President March 24, Researched and analyzed economic background data regarding the State of Hawaii and County of Maui. - Researched and analyzed geographic and demographic trends affecting the market in which the subject property competes. - Researched and analyzed subject property data including history, ownership, zoning, etc. - Inspected the subject property. - Researched and analyzed transactions involving properties having characteristics similar to the subject property. - Completed valuation analyses as described herein. - Prepared this appraisal report in a Restricted Use format. Property Data A table summarizing subject property data including ownership, zoning, assessed values, etc., and an aerial photograph are included on previous pages. Relevant maps, photographs, site plan and legal description are included in Exhibit 2 in the Addenda of this report. Rights Appraised The Rights Appraised involve the as is fee simple interest in the subject property and, separately, prospective fee simple value assuming completion of all on and off site infrastructure improvements. Existing Use Vacant, with infrastructure/site work under construction. Highest and Best Use As If Vacant Medical facility use (West Maui Hospital). Highest and Best Use As Improved Medical facility use (West Maui Hospital). Appraisal Methodology Market comparison approach and cost approach. The income approach was not employed as it is not applicable. FEE SIMPLE LAND VALUE WITH PHASE I INFRASTRUCUTRE/SITE WORK ASSUMED TO BE COMPLETED AS OF MARCH 31, 2017 Market Comparison Approach was employed to estimate the as is fee simple land value. A table summarizing Land Transactions is included on a following page with an accompanying map. Details to the transactions are included in Exhibit 3 in the Addenda of this report. Land Value Analysis is included on a following page. The analysis reflects a raw land value of $7,453,797 ($33.65 per sq. ft.), before consideration of infrastructure/site work costs. F:\NetworkBackup\Shared Documents\Reports\2017\Hoyle (Maui)\Restricted Use Appraisal Report.docx 5

8 6 LAND TRANSACTIONS

9 Primary Transactions 1 Hana Highway, Kahului 108, M-2 Deed 02/26/16 $4,200,000 $38.58 Purchased under threat of condemnation by ( ) owner of adjacent property (Gasco). 2 Hookele & Alae Streets, Kahului 45, M-1 Deeds 09/29/15 $2,487,276 $55.06 Vacant land acquired for owner occupant ( & 30) automobile sales use. 3 Hookele & Pakaula Streets, 477, M-1 Deed 08/28/15 $18,602,298 $38.99 Purchased for development with a Lowe's Kahului hardware store. ( ) 4 Pulehu Road, Kahului 105, M-1 Deeds 05/08/15 $4,421,970 $42.00 Vacant land acquired for owner occupant use. ( CPR 4 & 5) 5 Hookele Street & Pulehu Road, 174, M-1 Deeds 01/08/15 $8,215,895 $47.00 Vacant land acquired for development with an Kahului automobile dealership (Servco). ( et al.) 6 Hookele & Pakaula Streets, 517, M-1 Deed 11/08/13 $19,522,674 $37.74 Portion of Puunene Shopping Center acquired Kahului for development with a Target store. ( CPR 1) 7 Haleakala Highway & Kuleana 177, M-2 Deed 01/31/12 $6,753,094 $38.01 Purchased by abutting property owner Street, Kahului (Costco) for development with a gasoline ( CPR 1) service station and additional parking. 8 on a 7% contract rate of return on land value of $6,450,000. Gross land area of acres (152,504 sq. ft.) with 6,466 sq. ft. being part of Papalaua Street. Honoapiilani Highway, Lahaina 146, M-2 Rent 06/01/11 $6,450,000 $44.17 Ground rent renegotiation by arbitration for ( ) Reneg. land under West Maui Center. Rent set based Collateral Transaction 9 Hobron Avenue, Kahului 117, M-2 Deed 05/09/16 $2,130,000 $18.20 Irregular shape, encumbered by access ( ) easement, portions involve wetlands. LAND TRANSACTIONS Island of Maui, Hawaii Trans. Location Land Area Transaction Indicated Land Value No. (Tax Map Key) sq. ft. acres Zoning Type Date $ $/sf Comments 7

10 LAND VALUE ANALYSIS [1] TMK CPR 1 (Second Division) Wailuku, Maui, Hawaii DESCRIPTION Subject Trans No 1 Trans No 2 Trans No 3 Trans No 4 Trans No 5 Trans No 6 Trans No 7 Trans No 8 PROPERTY DATA Tax Map Key CPR & CPR 4 & etal CPR CPR Description West Maui Hospital Lowe's - Servco Target Costco West Maui Center Location Kakaalaneo Drive, Hana Highway, Hookele & Alae Hookele & Pakaula Pulehu Road, Hookele Street & Hookele & Pakaula Haleakala Highway, Honoapiilani Highway, Kaanapali Kahului Streets, Kahului Streets, Kahului Kahului Pulehu Road, Kahului Streets, Kahului Kahului Lahaina Transaction Type - Deed Deeds Deed Deeds Deeds Deed Deed Rent Reneg. Transaction Date - 02/26/16 09/29/15 08/28/15 05/08/15 01/08/15 11/08/13 01/31/12 06/01/11 Zoning R-3 M-2 M-1 M-1 M-1 M-1 M-1 M-2 M-2 Land Area (sq. ft.) 221, ,856 45, , , , , , ,038 (net) Land Area (acres) (net) TRANSACTION ANALYSIS Transaction Price $4,200,000 $2,487,276 $18,602,298 $4,421,970 $8,215,895 $19,522,674 $6,753,094 $6,450,000 $/sq. ft. of Land Area $38.58 $55.06 $38.99 $42.00 $47.00 $37.74 $38.01 $44.17 ADJUSTMENT FOR FINANCING Financing Adjustment x 1.00 x 1.00 x 1.00 x 1.00 x 1.00 x 1.00 x 1.00 x 1.00 Adjusted Unit Rate ($/sq. ft. of Land Area) $38.58 $55.06 $38.99 $42.00 $47.00 $37.74 $38.01 $44.17 ADJUSTMENT FOR CONDITIONS OF SALE Conditions of Sale Adjustment x 1.00 x 1.00 x 1.00 x 1.00 x 1.00 x 1.00 x 1.00 x 1.00 Adjusted Unit Rate ($/sq. ft. of Land Area) $38.58 $55.06 $38.99 $42.00 $47.00 $37.74 $38.01 $44.17 ADJUSTMENT FOR TIME Time Adjustment x 1.00 x 1.00 x 1.00 x 1.00 x 1.00 x 1.05 x 1.15 x 1.15 Adjusted Unit Rate ($/sq. ft. of Land Area) $38.58 $55.06 $38.99 $42.00 $47.00 $39.63 $43.71 $50.80 OTHER ADJUSTMENTS Location -5% -10% -10% -5% -10% -10% -5% -15% Corner/Frontage 0% -5% 0% 0% -5% -5% -5% -5% Easements 5% 0% 0% 0% 0% 0% 0% 0% Zoning -10% -10% -10% -10% -10% -10% -10% -10% Net Adjustments ($3.86) -10% ($13.77) -25% ($7.80) -20% ($6.30) -15% ($11.75) -25% ($9.91) -25% ($8.74) -20% ($15.24) -30% Subtotal $34.72 $41.29 $31.19 $35.70 $35.25 $29.72 $34.97 $35.56 Size Adjustment [2] x 0.92 x 0.84 x 1.09 x 0.92 x 0.97 x 1.10 x 0.98 x 0.95 Adjusted Unit Rate Per Square Foot $31.94 $34.68 $34.00 $32.84 $34.19 $32.69 $34.27 $33.78 INDICATED SUBJECT VALUE $7,074,806 $7,681,724 $7,531,102 $7,274,159 $7,573,188 $7,240,933 $7,590,908 $7,482,371 WEIGHTED AVERAGE Weighting Factor: x 0.10 x 0.10 x 0.15 x 0.10 x 0.15 x 0.10 x 0.15 x 0.15 $707,481 $768,172 $1,129,665 $727,416 $1,135,978 $724,093 $1,138,636 $1,122,356 Weighted Average: Site Work Adjustment: $2,600,000 Utilities Adjustment: ($500,000) $7,453,797 ($33.65/sf) "As Is" Land Value: $9,553,797 Say, $9,550,000 or $43.11 /Sq. Ft. of Land Area UNWEIGHTED SUMMARY T o t a l U n i t V a l u e Range: $7,074,806 to $7,681,724 $31.94 to $34.68 Median: $7,506,737 $33.89 Average: $7,431,149 $33.55 [1] The effective date of this analysis is: 03/31/17 [2] Based on the Dilmore Size Adjustment Tables, 92.5% curve. 8

11 Brian H. Hoyle, President March 24, 2017 Phase I infrastructure/site work (total cost of $2,600,000 summarized on a following page) is near completion and expected to be completed by March 31, The cost was added to the raw land value. A deduction of $500,000 for off-site utility lines infrastructure, yet to be built and paid for, was made to account for the subject property s pro-rata allocation for constructing utility lines for water, sewer and overhead electrical service. The analysis indicates an as is property value of $9,550,000 reflecting $43.11 per sq. ft. as of March 31, PROSPECTIVE MARKET VALUE ASSUMING COMPLETION OF PHASE 2 INFRASTRUCTURE Infrastructure construction commenced in 2016 with Phase 1 work to be completed by March 31, Phase 2 work will commence in April 2017 with completion anticipated in 2018 (estimated herein as August 15, 2018). Development costs provided by the client for site work and off site work for the West Maui Hospital are summarized on a following page. Phase 1 costs total $2,600,000 and Phase 2 costs total $3,150,000. Total project costs are estimated at $5,750,000. Prospective market value assuming completion of on and off site infrastructure requirements, effective August 2018, was estimated by adding the as is property value, infrastructure/site costs and overhead and profit at 15 percent of infrastructure/site costs as shown below. As Is Property Value $ 9,550,000 Net Phase 2 Costs $ 3,150,000 Overhead and Profit at 15% $ 470,000 Prospective Market Value $13,170,000 Say, $ 13,200,000 SUMMARY OF CONCLUSIONS Based upon the research and analyses completed, subject to the Limiting Conditions and Assumptions contained in this report, we estimate the Market Value of the fee simple interest in the subject property, as described herein, as follows: Effective Date $ As Is Market Value 3/31/17 $9,550,000 Prospective Market Value (Upon Completion of Infrastructure) 8/15/18 $13,200,000 F:\NetworkBackup\Shared Documents\Reports\2017\Hoyle (Maui)\Restricted Use Appraisal Report.docx 9

12 DEVELOPMENT COST SUMMARY West Maui Hospital Lahaina, Maui, Hawaii Phase 1 Costs Hospital Required Site Work $2,341,015 Hospital Required Off Site Work $132,726 Hospital Required Off Site Work - Utilities $138,143 Total Phase 1 Costs $2,611,884 Say, $2,600,000 Phase 2 Costs Hospital Required Site Work $948,753 Hospital Required Off Site Work $1,617,414 Hospital Required Off Site Work - Utilities $3,091,306 Total Phase 2 Costs $5,657,473 Less Seller's Utility Cost Responsibility $2,000,000 Adjusted Phase 2 Costs $3,657,473 Less Utility Cost Allocation to Unit 2 $500,000 Net Phase 2 Costs $3,157,473 Say, $3,150,000 Total Costs Hospital Required Site Work $3,289,768 Hospital Required Off Site Work $1,750,140 Hospital Required Off Site Work - Utilities $3,229,449 Total Costs $8,269,357 Say, $8,250,000 Less Adjustments $2,500,000 Net Total Costs $5,750,000 10

13 Brian H. Hoyle, President March 24, 2017 The estimated marketing and exposure times are 9± months. CERTIFICATION I certify that, to the best of my 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 my personal, impartial, and unbiased professional analyses, opinions, and conclusions. I 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. I have performed appraisal services regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. My engagement in this assignment was not contingent upon developing or reporting predetermined results. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. I have made a personal inspection of the property that is the subject of this report. No one provided significant real property appraisal assistance to the persons signing this certification. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. 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 report, Jan R. Medusky, MAI has completed the continuing education program for Designated Members of the Appraisal Institute. F:\NetworkBackup\Shared Documents\Reports\2017\Hoyle (Maui)\Restricted Use Appraisal Report.docx 11

14 Brian H. Hoyle, President March 24, 2017 As of the date of this report, Edward W. Becker, MAI has completed the continuing education program for Designated Members of the Appraisal Institute. This appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. We appreciate the opportunity of completing this assignment for you. Sincerely, Medusky & Co., Inc. Jan R. Medusky, MAI, CRE President Hawaii State Certified General Appraiser CGA-17 Certificate Expires 12/31/17 Edward W. Becker, MAI Real Estate Appraiser Hawaii State Certified General Appraiser CGA-581 Certificate Expires 12/31/17 F:\NetworkBackup\Shared Documents\Reports\2017\Hoyle (Maui)\Restricted Use Appraisal Report.docx 12

15 A D D E N D A

16 EXHIBIT 1 (Page 1) LIMITING CONDITIONS AND ASSUMPTIONS The conduct of any study is necessarily guided by, and its results influenced by, the terms of the assignment and the assumptions forming the basis of the study. The following conditions and assumptions, together with other assumptions embodied in the study, constitute the framework of our analysis and conclusions. STANDARD LIMITING CONDITIONS AND ASSUMPTIONS 1. The conclusions and opinions are based upon the purchasing power of the dollar and economic conditions as of the effective appraisal dates. This study expresses the opinion of the appraisers as of March 24, 2017, with effective value dates of March 31, 2017 and August 15, 2018, and in no way was contingent upon the reporting of specified conclusions. 2. It is assumed that the subject property is free and clear of any and all encumbrances, except for those noted herein; no responsibility is assumed for matters of a legal nature; nor is the report to be construed as rendering any opinion of title, which is assumed to be good and salable. 3. Soil Conditions and Land Areas - A soils report was not furnished to the appraisers. We assume soil conditions to be satisfactory for existing and potential development of the subject and assume no responsibility in this respect. Land areas are based on information provided by Tax Office records and other sources and are assumed to be correct. 4. Relied Upon Information- Information provided by informed local sources, such as governmental agencies, financial institutions, Realtors, buyers, sellers, property owners and others, was weighed in the light in which it was supplied and checked by secondary means when appropriate. It is believed that the information obtained from these and other sources is true and correct. 5. Maps - Any maps or plans reproduced and included in this report are intended only for the purpose of showing spatial relationships. They are not necessarily measured surveys or measured maps and we are not responsible for cartographic or surveying errors. 6. Possession of this report, or a copy thereof, does not carry with it the right of publication, and the report may not be used by any person or organization except the client without the previous written consent of the appraisers and then only in its entirety. 7. The report does not imply the right of court testimony on the part of the appraisers, without additional arrangements. 8. Disclosure of the contents of this study is governed by the By-Laws and Regulations of the Appraisal Institute. Neither all nor any part of the contents of this study (especially any conclusions as to value, the identity of the appraisers or the firm with which they are connected, or any reference to the Appraisal Institute or to the MAI designation) shall be disseminated to the public through advertising media, public relations media, news media, sales media or any other public means of communication, without the prior consent and approval of the appraisers.

17 EXHIBIT 1 (Page 2) 9. Disclosure to Institute - The contents of this report are subject to the review, upon request of the Appraisal Institute, by duly constituted committees of the Institute or individual members thereof when such committees or members are acting within the scope of their authority under the By-Laws and Regulations of the Institute. This requirement was adopted by the Institute to facilitate the Institute s efforts to maintain the high standards of professional practice and ethical conduct that have been the hallmark of the Institute since its creation. 10. Toxic Wastes and Hazardous Materials - The existence of toxic wastes and/or other hazardous materials, which may or may not be present on the property, was not observed by the appraisers. The appraisers have no knowledge of the existence of such materials on or in the property. The appraisers, however, are not qualified to detect such substances. The presence of substances such as toxic wastes, asbestos, ureaformaldehyde foam insulation, or other potentially hazardous materials may affect the value of the property. The value estimate is predicated on the assumption that there is no such material on or in the property that would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired. The value conclusions shown in this report assume that there are no toxic wastes and/or hazardous materials affecting the subject property. SPECIAL LIMITING CONDITIONS AND ASSUMPTIONS 11. Restricted Use Appraisal Report - As this is a Restricted Use Appraisal Report, it has been prepared for the sole and exclusive use of the client and is not intended for use by any other party. Additional information regarding the appraisal is retained in the appraisers work file. The opinions and conclusions set forth in the report may not be properly understood without additional information in the work file. 12. Infrastructure Costs Direct construction costs for infrastructure/site work were provided by the client and are based on the actual construction bid for the project. The construction costs used herein for valuation purposes are based on the information provided by the client and are assumed to be reasonably accurate. The appraisers have reviewed the construction costs based on the actual construction bid provided by the client which appear reasonable. However, the appraisers are not experts in this field. Should the direct construction costs for the subject property differ significantly from that used herein, the market values of the subject property would be different than that estimated herein. This appraisal assumes that infrastructure/site work has been completed, as described herein, by the effective value dates.

18 EXHIBIT 2 (Page 1 ) STATE MAP

19 EXHIBIT 2 (Page 2 )

20 ENVIRONS MAP EXHIBIT 2 (Page 3 )

21 EXHIBIT 2 (Page 4 ) TAX MAP

22 STATE LAND USE MAP EXHIBIT 2 (Page 5 )

23 EXHIBIT 2 (Page 6 )

24 EXHIBIT 2 (Page 7 )

25 EXHIBIT 2 (Page 8 ) TAX MAP

26 SUBJECT PROPERTY Lahaina, Island of Maui, Hawaii EXHIBIT 2 (Page 9 ) PHOTO NO. 1: Easterly view along Kakaalaneo Drive. The Subject Property is to the left. PHOTO NO. 2: Drive. Northerly view of the Subject Property across Kakaalaneo

27 SUBJECT PROPERTY Lahaina, Island of Maui, Hawaii EXHIBIT 2 (Page 10 ) PHOTO NO. 3: Southerly view from a central portion of the Subject Property. PHOTO NO. 4: Northerly view from a central portion of the Subject Property.

28 SUBJECT PROPERTY Lahaina, Island of Maui, Hawaii EXHIBIT 2 (Page 11 ) PHOTO NO. 5: Property. Southeasterly view from a central portion of the Subject PHOTO NO. 6: Property. Northwesterly view from a central portion of the Subject

29 EXHIBIT 2 (Page 12 )

30 EXHIBIT 2 (Page 13 ) LEGAL DESCRIPTION OF THE SUBJECT PROPERTY Provided by the Client EXHIBIT A FIRST: Unit No. 1 of that certain condominium project known as West Maui Hospital and Medical Center Condominium, as established by Declaration of Condominium Property Regime of West Maui Hospital and Medical Center Condominium (the Declaration ) dated October 17, 2016, recorded in the Bureau of Conveyances of the State of Hawaii (the Bureau ) as Document No. A , and as shown on Condominium Map No Together with appurtenant easements as follows: (a) Non-exclusive easement in the common elements designed for such purposes for ingress to, egress from, utility services for and support of said unit; in the other common elements for use according to their respective purposes. (b) Easements to use other limited common elements appurtenant thereto designated for its use by the Declaration. SECOND: An undivided percent (33.914%) interest in all common elements of the project and in the land on which said project is located, as established for said unit by the declaration, or such other percentage interest as hereinafter established for said unit by any amendment of the declaration, as tenant in common with the other owners and tenants thereof. Being a portion of the premises conveyed to Grantor by Limited Warranty Deed and Reservations of Rights dated September 22, 2014, and recorded in the Bureau as Document No. A ImanageDB:

31 TRANSACTION NO. 1 EXHIBIT 3 (Page 1 ) Aerial Photo Tax Map

32 EXHIBIT 3 (Page 2 ) LAND TRANSACTIONS Transaction No. 1 Property Data: Tax Map Key: Land Area: Location: Improvements: County Zoning: (Second Division) acres (108,856 sq. ft.) Hana Highway, Kahului, Maui, Hawaii Vacant M-2, Heavy Industrial District Transaction Data: Transaction Type: Special Warranty Deed Transaction Date: February 26, 2016 Recorded: Doc. No. A Grantor: Kanaha Professional Plaza, LLC Grantee: The Gas Company, LLC Transaction Price: Indicated Unit Rate: $4,200,000 (cash to seller) $38.58 per sq. ft. ( $4,200, ,856 sq. ft. ) Comments: Details to this transaction were verified with an appraiser knowledgable of the transaction. The property was purchased under threat of condemnation and involved cash to the seller. The buyer owns adjacent property. Topography is fairly level, at grade of the abutting roadways. About 10,000 sq. ft. near the southwest corner of the property is encumbered by access, drain and waterline easements.

33 TRANSACTION NO. 2 EXHIBIT 3 (Page 3 ) Aerial Photo Tax Map

34 EXHIBIT 3 (Page 4 ) Transaction No. 2 Property Data: Identification: Tax Map Key Land Area (Second Division) (sq. ft.) (acres) , , , Location: Improvements: County Zoning: Hookele & Alae Streets, Puunene, Kahului, Wailuku, Island of Maui, Hawaii Vacant M-1, Light Industrial District Transaction Data: Transaction Type: Limited Warranty Deeds with Reservations and Covenants Transaction Date: September 29, 2015 Recorded: Doc No. A and A Grantor: Alexander & Baldwin, LLC Grantee: Kihei Auto Sales, Inc. Transaction Price: Parcel 29: $1,115,136 Parcel 30: $1,372,140 Total Transaction Price: Indicated Unit Rate: $2,487,276 (cash to seller) $55.06 per sq. ft. ( $2,487,276 45,172 sq. ft. ) Comments: Details to this transaction were verified with Marty Kenney, an agent involved in the transaction. According to Mr. Kenney, this was an arm's length transaction involving cash to the seller. The property was purchased for development as a used automobile dealership. Topography is fairly level, at grade of the abutting roadways.

35 TRANSACTION NO. 3 EXHIBIT 3 (Page 5 ) Aerial Photo Tax Map

36 EXHIBIT 3 (Page 6 ) Transaction No. 3 Property Data: Tax Map Key: Land Area: Location: Improvements: County Zoning: (Second Division) acres (477,069 sq. ft.) Hookele & Pakaula Streets, Puunene, Wailuku, Maui, Hawaii Vacant M-1, Light Industrial District Transaction Data: Transaction Type: Limited Warranty Deed with Covenants and Reservations Transaction Date: August 28, 2015 Recorded: Doc. No. A Grantor: Alexander & Baldwin, LLC Grantee: Lowe's Home Centers, LLC Transaction Price: Indicated Unit Rate: $18,602,298 (cash to seller) $38.99 per sq. ft. ( $18,602, ,069 sq. ft. ) Comments: Details to this transaction were verified with Marty Kenney, an agent involved in the transaction. According to Mr. Kenney, this was an arm's length transaction involving cash to the seller. The property was purchased for development a Lowe's hardware store. Topography is fairly level, at grade of the abutting roadways.

37 TRANSACTION NO. 4 EXHIBIT 3 (Page 7 ) Aerial Photo Tax Map

38 EXHIBIT 3 (Page 8 ) Transaction No. 4 Property Data: Identification: Tax Map Key Land Area (Second Division) (sq. ft.) (acres) CPR 4 61, CPR 5 44, , Location: Improvements: County Zoning: Pulehu Road, Puunene, Kahului, Wailuku, Island of Maui, Hawaii Vacant M-1, Light Industrial District Transaction Data: Transaction Type: Limited Warranty Unit Deeds with Reservations and Covenants Transaction Date: May 8, 2015 Recorded: Doc No. A & A Grantor: Alexander & Baldwin, LLC Grantee: 5521 LLC Transaction Price: CPR 4: $2,572,000 CPR 5: $1,849,970 Total Transaction Price: Indicated Unit Rate: $4,421,970 (cash to seller) $42.00 per sq. ft. ( $4,421, ,285 sq. ft. ) Comments: Details to this transaction were verified with Marty Kenney, an agent involved in the transaction. According to Mr. Kenney, this was an arm's length transaction involving cash to the seller. The property was purchased for development in conjunction with the buyer's business. Topography is fairly level, at grade of the abutting roadway.

39 TRANSACTION NO. 5 EXHIBIT 3 (Page 9 ) Aerial Photo Tax Map

40 EXHIBIT 3 (Page 10 ) Transaction No. 5 Property Data: Identification: Tax Map Key Land Area (Second Division) (sq. ft.) (acres) , , , , , , , , Location: Improvements: County Zoning: Hookele Street & Pulehu Road, Puunene, Kahului, Wailuku, Island of Maui, Hawaii Vacant M-1, Light Industrial District Transaction Data: Transaction Type: Limited Warranty Deeds with Reservations and Covenants Transaction Date: January 8, 2015 Recorded: Doc No. A through A Grantor: Alexander & Baldwin, LLC Grantee: Servco Pacific Inc. Transaction Price: Parcel 23: $875,000 Parcel 24: $999,000 Parcel 25: $999,000 Parcel 31: $999,000 Parcel 32: $1,403,895 Parcel 33: $950,000 Parcel 34: $1,990,000 Total Transaction Price: Indicated Unit Rate: $8,215,895 (cash to seller) $47.00 per sq. ft. ( $8,215, ,806 sq. ft. ) Comments: Details to this transaction were verified with Marty Kenney, an agent involved in the transaction. According to Mr. Kenney, this was an arm's length transaction involving cash to the seller. The property was purchased for development as an automobile dealership. Topography is fairly level, at grade of the abutting roadways.

41 TRANSACTION NO. 6 EXHIBIT 3 (Page 11 ) Aerial Photo Tax Map

42 EXHIBIT 3 (Page 12 ) Transaction No. 6 Property Data: Tax Map Key: Land Area: Location: Improvements: County Zoning: CPR 1 (Second Division) acres (517,362 sq. ft.) Hookele & Pakaula Streets, Puunene, Wailuku, Maui, Hawaii Vacant M-1, Light Industrial District Transaction Data: Transaction Type: Warranty Unit Deed Transaction Date: November 8, 2013 Recorded: Doc. No. A Grantor: PDCI, Inc. Grantee: Target Corporation Transaction Price: Indicated Unit Rate: $19,522,674 (cash to seller) $37.74 per sq. ft. ( $19,522, ,362 sq. ft. ) Comments: Details of this transaction were verified with Wendell Brooks, the agent representing the seller. According to Mr. Brooks, this was an arm's length transaction involving cash to the seller. The property was acquired for development with a Target store. The property is a portion of the acre site under construction with Puunene Shopping Center which sold in November 2013 for $40,350,000 ($37.88/sq. ft.). The transactions were part of a double closing. Topography is fairly level, at grade of the abutting roadways.

43 TRANSACTION NO. 7 EXHIBIT 3 (Page 13 ) Aerial Photo Tax Map

44 EXHIBIT 3 (Page 14 ) Transaction No. 7 Property Data: Tax Map Key: Land Area: Location: Improvements: County Zoning: CPR 1 (Second Division) acres (177,681 sq. ft.) Haleakala Highway & Kuleana Street, Kahului, Maui, Hawaii Vacant M-2, Heavy Industrial District Transaction Data: Transaction Type: Transaction Date: January 31, 2012 Recorded: Doc. No. A Grantor: Alexander & Baldwin, Inc. Grantee: Costco Wholesale Corporation Limited Warranty Unit Deed with Reservations and Covenants and Limited Powers of Attorney Transaction Price: Indicated Unit Rate: $6,753,094 (cash to seller) $38.01 per sq. ft. ( $6,753, ,681 sq. ft. ) Comments: Details of this transaction were verified with Charles Loomis, a representative of the seller. According to Mr. Loomis, this was an arm's length transaction involving cash to the seller. The property was acquired for development with a gasoline service station and expansion of parking areas for the Costco warehouse store on abutting property. Topography is fairly level, at grade of the abutting roadways.

45 TRANSACTION NO. 8 EXHIBIT 3 (Page 15 ) Aerial Photo Tax Map

46 EXHIBIT 3 (Page 16 ) Transaction No. 8 Property Data: Tax Map Key: Net Land Area: Location: Improvements: County Zoning: (Second Division) acres (146,038 sq. ft.) Honoapiilani Highway and Papalaua Street, Lahaina, Maui, Hawaii 36,800 sq. ft. wood frame retail/warehouse building built in 1976, 4,200 sq. ft. wood frame office building built in 1979 and 16,264 sq. ft. steel warehouse built in M-2, Heavey Industrial District Transaction Data: Transaction Type: Ground Rent Renegotiation (Arbitration) Effective Date: June 1, 2011 Recorded: Not Recorded Lessor: MBL Maryland, Inc. Lessee: West Maui Center LLC Renegotiated Ground Rent: $451,500 /year Contract Rate of Return: 7.0% Indicated Land Value: $6,450,000 Indicated Unit Rate: $44.17 per sq. ft. ( $6,450, ,038 sq. ft. ) Comments: Details of this transaction were verified with Terrence Lee, the attorney representing the lessee. According to Mr. Lee, ground rent for the 10 year period from June 1, 2011 to May 31, 2021 was established by arbitration at $451,500 per year. The lease states that renegotiated rent " for each successive ten-year periods from June 1, 2011 through May 31, 2031 shall be determined by written agreement between Lessors and Lessee or, if they fail to reach such agreement at least 90 days before the commencement of such period, as shall be equal to seven percent (7%) of the then fair market value of the demised land or equal to the then current fair market value of the demised land, in either case exclusive of and buildings thereon and of the portion of said land subject to withdrawal by Lessors for roadway purposes as herein set forth and considering the nature and extent of approved development thereof, as determined by appraisal as herein provided, whichever is greater, but in no event less than the annual minimum rent for the last lease year preceding such period " The property has a gross land area of acres (152,504 sq. ft.). A portion of Papalaua Street (6,466 sq. ft.) is located on the property, resulting in a net land area of 3.53 acres (146,038 sq. ft.). Topography is fairly level, at grade of the abutting roadways.

47 QUALIFICATIONS OF JAN R. MEDUSKY, MAI, CRE President, Medusky & Co., Inc., Real Estate Consultants Queen s Court, Suite 404, 800 Bethel Street, Honolulu, Hawaii President ( ), Cowell & Co., Inc. Licensed Real Estate Broker, State of Hawaii (License No. RB-16915) Member, Appraisal Institute (MAI), Hawaii Chapter (Certificate No. 7313) Past President, American Institute of Real Estate Appraisers Honolulu Chapter No. 15 Member, The Counselors of Real Estate (CRE) (Certificate No. 2560) Past Chapter Chair, The Counselors of Real Estate Hawaii Chapter Hawaii State Certified General Appraiser (CGA-17) EDUCATION Culver Military Academy, Culver, Indiana. Graduated with honors, Bachelor of Science Degree, U.S. Military Academy, West Point, New York, University of Hawaii, Graduate courses in Business and Economics, Master of Business Administration Degree, Chaminade University of Honolulu, SPECIAL COURSES Graduate Real Estate Institute, Courses I and II, Honolulu, Stapleton School of Real Estate, Sales Licensing Course, Honolulu, Credit for various American Institute of Real Estate Appraisal Courses. Instructor for various seminars/classes regarding real estate valuation. MILITARY Captain, U.S. Army, Held various positions including Commander, Air Defense Artillery Battery and Special Staff Officer, 25 th Infantry Division General Staff, Schofield Barracks, Hawaii. EXPERIENCE Engaged in real estate consultation and valuation throughout the Pacific Basin since Geographical areas covered include the four counties of the State of Hawaii, the Territory of Guam, the Federated States of Micronesia, Republic of the Marshall Islands, Republic of Palau, Saipan, American Samoa and selected locations on the West Coast of the United States Mainland. Specializes in valuation for litigation purposes, tax appeals, leased fee conversions, arbitrations and rent renegotiations.

48 QUALIFICATIONS OF EDWARD W. BECKER, MAI Real Estate Appraiser, Medusky & Co., Inc., Real Estate Consultants Queen s Court, Suite 404, 800 Bethel Street, Honolulu, Hawaii EDUCATION Bachelor of Arts Degree University of Hawaii at Manoa, Honolulu, Hawaii Political Science Major SPECIAL COURSES State Certification Courses Appraising the Single Family Residence Foundations of Real Estate Appraisal Real Estate Appraisal Methods Uniform Standards of Professional Appraisal Practice Appraisal Institute Courses 550 Advanced Applications 540 Report Writing and Valuation Analysis 530 Advanced Sales Comparison and Cost Approaches 520 Highest & Best Use and Market Analysis 510 Advanced Income Capitalization 430 Standards of Professional Practice, Part C 420 Standards of Professional Practice, Part B 410 Standards of Professional Practice, Part A Appraisal Institute Seminars/Programs An Introduction to Valuing Commercial Green Buildings Business Practices and Ethics Eminent Domain and Condemnation Appraising Feasibility, Market Value, Investment Timing: Option Value FHA and the Appraisal Process New Industrial Valuation Review Theory General Site Use and Valuation Analysis Small Hotel/Motel Valuation The Appraiser as an Expert Witness: Preparation and Testimony Uniform Appraisal Standards for Federal Land Acquisitions University of Hawaii at Manoa, Small Business Management Program, Real Estate Licensing Course EXPERIENCE Engaged in real estate consultation and valuation since Geographic areas covered include the four counties of the State of Hawaii, the Republic of the Marshall Islands, Republic of Korea and American Samoa. Property types include agricultural, industrial, office, preservation, residential, resort, shopping center, subdivision and various other property types.