COMMERCIAL APPRAISAL REPORT

Transcription

1 COMMERCIAL APPRAISAL REPORT File No.: Date of Valuation July 12, 28 Property Address 5 Alfred Nobel Drive, Ste. 137 Hercules, Ca See Preliminary Report For First Community Bank 438 First Street Santa Rosa, Ca 9541 TABLE OF CONTENTS UCISAR - Small Property... 1 Additional Comparables Subject Photos Subject Photos Subject Photos Plat Map Location Map Aerial Map Flood Map Comparable Photos Comparable Photos General Text Addendum Discussion of Sales Comparision Approach - Page Discussion of Sales Comparision Approach - Page Tax bill Certificate Certificate Form TCG_LT "WinTOTAL" appraisal software by a la mode, inc. 1-8-ALAMODE

2 Intended Use of Report To assist in decision making regarding subject as REO Scope of Work See attached addenda. Complete Appraisal Limited Appraisal due to the following departures from Standard 1 Summary Appraisal Report THREE YEAR OWNERSHIP HISTORY Owner Recording Reference Date Price Paid Terms of Sale Most Recent PF Enterprises LLC /2/25 233, CTNL Previous Previous Previous Current Contract Option Listing Price Buyer N/A Contract Price Seller Phillip Evans Closing Date The subject is currently owned by PF Enterprises LLC. The price paid is without tenant improvements. There have not been any other transfers in the last three years prior to the above mentioned on 12/2/25. Boundaries: the north. NEIGHBORHOOD DESCRIPTION Interstate 8 on the southeast, San Pablo Avenue on the southwest, San Pablo Bay on the west and Parker Avenue on Neighborhood Built Up 75 % Land Use: Single Family 5 % Office 1 % MultiFamily % Industrial 1 % Retail 1 % Vacant 2 % Undersupply Balanced Oversupply Vacancy Single Family % Multifamily % Office % Retail % Industrial % Distance-CBD <1 Miles Distance-Freeway <1 Miles Distance-Public Transportation <1 Miles Location Rural Suburb Urban Development Trend Up Stable Down Value Trend Up Stable Down Vacancy Trend Up Stable Down Rental Demand Up Stable Down Change In Land Use: Unlikely Likely Taking Place From N/A To N/A Rental Rate Range (Exclude Extremes) for Subject Property Type: From 21.6 /SF/Year To 29.4 /SF/Year Age Range (Exclude Extremes) for Subject Property Type: From 3 yrs To 3 yrs Neighboring Property Use: Neighboring property use is single family on the south and north, retail and office in the immediate neighborhood on Alfred Nobel Dr. and Linus Pauling Dr. The subject is located in an office research development light industrial park on the west side of Interstate 8 in the City of Hercules, California. The office parks in the subject's immediate area were developed circa and are in very good condition. There were no adverse environmental or physical factors noted at the time of inspection. Property rental rates in the immediate area range from 1.8 per square foot per month to 2.45 per square foot per month. There are 3 properties on the Loopnet Data Base and one available for rent on the MLS system in the immediate area of the subject. The property at 75 Alfred Noble Drive has two spaces available, 121 square feet and 6 square feet. The broker is asking 2.45 per square foot and the units are advertised as medical office space. SITE DESCRIPTION Legal Description See Preliminary Report See Addenda Environmental Problems Known or Suspected Yes No Site Size 863 sq. ft. Usable Land Area 863 sq. ft. Excess Land Area Site Dimensions Street Frontage The subject site is a condominium in an office condominium project. The subject site fronts Linus Pauling and Alfred Nobel Drive. Copyright 1999 by The Appraisal Foundation. All rights reserved. Dana W. Burwell, MAI, ASA Form SP9 "WinTOTAL" appraisal software by a la mode, inc. 1-8-ALAMODE

3 File No Page #2 PAGE 2 SITE DESCRIPTION (continued) Access Street Frontage Shape Functional Utility Visibility Landscaping Drainage Adequacy of Utilities Traffic Pattern Traffic Volume Gd Av Fr Utility: Electricity Gas Water Sewer Telephone Street Improvements: Street Width Street Paving Sidewalks Curbs & Gutters Storm Sewers Lighting Provided By: PG&E PG&E City City SBC Describe: 5-6 asphalt concrete concrete yes yes Topography: Level Mod Slope Steep Slope At Grade Above Grade Below Grade Yes No Corner Lot Underground Utilities Railroad Access Earthquake Zone Flood Hazard Area Map # 64348B Date 9/3/1982 Soil Conditions Easements Encroachments The soil conditions appear to be normal and support the weight of the improvements. none noted at time of inspection none noted at time of inspection Current Zoning Current zoning is "PO/RD" for Planned Office-Research District Legally Conforming Yes No Zoning Change: Likely Not Likely To Uses Allowed Under Current Zoning Office for business, Research & Development and light Industrial use. The subject is an office condominium located in a well-planned office park. The subject is legal conforming and conforms to the current uses in the immediate neighborhood. ASSESSMENT AND TAXES Assessment Year 7-8 APN Tax Rate Year Taxes Total 331,17 Total.153 Current Taxes 7 5,68.14 Land 17,1 County.1 Estimated Taxes 8 5,68.14 Building(s) 224,7 City.53 Tax Assessment 5.87 /SF Other Other Year Of Next Reassessment N/A Special Assessments: Special assessments total 1, from the City of Hercules. This accounts for water, sewer, emergency, mosquito abatement, and other City charges. Reassessment Issues: Currently there are no reassessment issues forecast for the near future unless the property is transferred at sale. The tax bill indicates that the taxes are 5,68.14 which appear to contradict the Preliminary Report. This could be that the Preliminary Report is including the whole or larger portion of the developed parcel. IMPROVEMENTS DESCRIPTION Property Type Condominium Construction Type CTU # Buildings 1 # Stories 2 Building Floor Gross SF *Net SF Total *Usable Area Rentable Area Use Type Net SF Use % Office Retail Warehouse Manufacturing Distribution Research/Development Year Built 24 Building Efficiency Ratio 1 % Effective Age Total Economic Life Remaining Economic Life Floor Area Ratio 1 % Ground Coverage Ratio % Parking Yes No On Site Adequacy Covered Parking Garage Paved Number of Spaces Spaces/1 SFBA Industrial Only # Overhead Doors Floor Height FT Ceiling Height FT Column Spacing FT x FT Railroad Spur Yes No The subject is a single user office condominium in good condition. The unit is situated in a concrete tilt-up building that contains approximately 59,176 gross square feet and is divided into 27 condominium units. There is an estimated load factor of 15%. The appraiser used an estimated gross floor area of 863 square feet for analysis in this report. Copyright 1999 by The Appraisal Foundation. All rights reserved. Form SP9 "WinTOTAL" appraisal software by a la mode, inc. 1-8-ALAMODE

4 File No Page #3 Foundation Frame Floor/Cover Ceiling Exterior Walls Interior Partitions Roof Cover Plumbing Heating Air Conditioning Electrical Elevators Parking Insulation Sprinkler Roof Support IMPROVEMENTS DESCRIPTION (continued) PAGE 3 Building Description Improvement Rating Concrete Slab Gd Av Fr N/A Concrete & Steel Appeal/Appearance Combination of tile and carpeting Floor Plan/Design Hung ceiling in office Construction Quality Concrete & stucco Exterior Condition Textured sheetrock Interior Condition Composition sheet Roof Cover Assumed to be average Plumbing Forced air Heating Forced air Air Conditioning Adequate Electrical Two Elevators On site and adequate Parking Area Assumed to be adequate Insulation Yes Sprinkler Truss/ concrete support walls with steel frame Landscaping Site Improvements: The site has asphalt striped parking, well maintained landscaping, lighted and there is no indication of adverse environmental impact on the site. Personal Property or Other Non-Realty Interests Included in Valuation: No Yes The subject is an office condominium located in a larger office condominium project known as the "Venture Professional Center." The building is of concrete tilt-up constructed circa 24. There were no adverse conditions noted at the time of inspection. The subject office condominium is in very good condition and includes the tenant improvements that were installed by the owner. The improvements are decorated in a tasteful manner and the unit is in very good condition. The subject unit conforms to the other units located in the project building. HIGHEST AND BEST USE HIGHEST AND BEST USE AS IF VACANT Legally Permissible Uses: The highest and best use of vacant land is typically that use (or uses) permitted by the existing zoning ordinance. One exception is when a zone change or use variance can likely be obtained. The subject property is currently zoned "PO/RD" for Planned Office-Research and Development Mixed-Use District. Physically Possible Uses: The subject building to land ratio is within the range of other projects in the immediate neighborhood. The parcel could support an improvement the same size as the subject building conditioned on the restrictions from the Planning Department of the City of Hercules. Financially Feasible Uses: The subject property could be developed with an office building to the densities permitted in the zoning ordinance. The market for such uses appears to be moderate with some vacancies in the area. Maximally Productive Use: Based upon this analysis, it is my opinion that the most economical strategy for the site as unimproved is for development of an office condominium project Highest and best use as vacant would be for office/ R&D condominium development. HIGHEST AND BEST USE AS IMPROVED Legally Permissible Uses: Highest and best use as vacant would be office condominium. Physically Possible Uses: The subject improvements are conforming to current zoning. The property is legally permissible as developed as an office condominium. Financially Feasible Uses: The subject property is in good condition with no instances of deferred maintenance observed. The subject building to land ratio is within the range of other projects in the immediate neighborhood and thus the improvements are considered maximally efficient. Maximally Productive Use: The highest present value to the owner of the subject improvement is to continue the subject's current use "as is." The Market Value improved is greater than the Market Value of the site as if vacant. Based on the above tests, the highest and best use of the subject property as improved is considered to be "as is," currently developed as an office condominium. The highest and best use for the subject is as it is currently improved, office condominium. Copyright 1999 by The Appraisal Foundation. All rights reserved. Form SP9 "WinTOTAL" appraisal software by a la mode, inc. 1-8-ALAMODE

5 File No Page #4 VALUATION METHODS SELECTED Cost Approach Income Approach Direct Sales Comparison Approach Reasons for Excluding an Approach: The Cost Approach was excluded due to the subject being an office condominium. The site value would be difficult to obtain. The Income Approach was excluded due to the owner occupant status of the subject and other units in the development. Value conclusions for such properties are weighted to the Sales Approach. PAGE 4 Market Value of Personal Property Market value of Other Non-Realty Interests Total Market Value of Non-Realty Interests MARKET VALUE ESTIMATE OF NON-REALTY ITEMS The subject is appraised "as is" and did not include valuation of any "non-realty items." COMPARABLE SITE ANALYSIS Data Sheets Att Subject Comparable #1 Comparable #2 Comparable #3 Location/Address 5 Alfred Nobel Drive #137 Proximity to Subject Map Reference 3684 Deed Reference Date of Sale Exposure Time Data Source Site Size SF Acres 863 Frontage Zoning Utilities Site Improvements Unit of Comparison Sales Price Price Per Unit Property Rights Conveyed Financing Conditions of Sale Market Conditions Other s: Location Topography Shape/Utility Utilities Site Improvements Total s Indicated Value Per Unit The Comparable Sita Analysis is not used in this report. Total Site Units: Unit Value Estimated Site Value Excess Land Area Units: Unit Value Estimated Excess Land Value EXCESS LAND Copyright 1999 by The Appraisal Foundation. All rights reserved. Form SP9 "WinTOTAL" appraisal software by a la mode, inc. 1-8-ALAMODE

6 File No Page #5 COST APPROACH PAGE 5 Cost Source Component No. Size Unit Cost Cost Reproduction Replacement Cost New of Improvements Plus: Indirect (Soft Costs) Plus: Entrepreneurial Profit % Total Cost New Less: Physical Deterioration % Less: Functional Obsolescence % Less: External Obsolescence % Total Accrued Depreciation (Deterioration & Obsolescence) ( ) Depreciated Value of Building(s) Plus: Contributing Value of Site Improvements Depreciated Value of Improvements The Cost Approach is not used in this report Estimated Site Value Plus: Estimated Excess Land Value Plus: Depreciated Value of Improvements Plus: Market Value of Personal Property and Other Non-Realty Interests Indicated Value Before for Interest Appraised Less: for Interest Appraised Value Indication - Cost Approach Rounded INCOME APPROACH/RENTAL COMPARABLE BUILDING ANALYSIS Data Sheets Att Subject Comparable #1 Comparable #2 Comparable #3 Address 5 Alfred Nobel Drive #137 Proximity to Subject Map Reference Year Built 3684 Circa 24 Gross Building Area 863 Number of Stories Current Vacancy % Construction Type Construction Quality Condition Parking 1 CTU good very good On site and adequate Date of Rent Survey Asking Rent Lease Period Tenant Improvement Allowance Concessions Tenant Name Beginning Date Term Lease Type* Tenant Size (SF) Rent Per SF Rent Concessions Adj. Adjusted Rent Per SF for Market Conditions Adjusted Rent Per SF Copyright 1999 by The Appraisal Foundation. All rights reserved. Form SP9 "WinTOTAL" appraisal software by a la mode, inc. 1-8-ALAMODE

7 File No Page #6 Location Quality Condition INCOME APPROACH/RENTAL COMPARABLE BUILDING ANALYSIS (continued) PAGE 6 Total s Indicated Market Rent *Lease Types: Gross Lease (G), Net Lease (N), Triple Net Lease (TN), Modified Gross (MG), Expense Passthroughs (P), Sales Overage Rents (O), Common Area Maintenance (C), Renewal Options (R) SUMMARY OF SUBJECT LEASES Estimated Tenant Rented Beginning Lease Current Effective Market Name Area (SF) Date Term Types Rent Rent/SF Rent/SF The Subject is owner occupied INCOME AND EXPENSE HISTORY AND FORECAST Income: Actual Comments and Calculations Stabilized From to Gross Potential Income Vacancy and Collection Loss % ( ) ( ) Other Income Effective Gross Income Expenses: Property Taxes Insurance Property Management Utilities Janitorial Maintenance Reserves Total Expenses Net Operating Income (NOI) Expense/SF Expense Ratio % DIRECT CAPITALIZATION Overall Rate Range to Equity Dividend Rate Range to Overall Rate (RO) = Mortgage x = Equity x = Overall Rate (RO) = NOI (Ro) Estimated Value NOI (Ro) Estimated Value / = / = Copyright 1999 by The Appraisal Foundation. All rights reserved. Form SP9 "WinTOTAL" appraisal software by a la mode, inc. 1-8-ALAMODE

8 File No Page #7 YIELD CAPITALIZATION Cash Flow Analysis in Addenda Yes No Market Rate Scenario Contract Rent Scenario Forecast Holding Period Beginning NOI NOI Pattern Reversion Assumption Yield Rate Value Estimate PAGE 7 ADJUSTMENT FOR INTEREST APPRAISED Value Estimate - Market Rent Scenario Value Estimate - Contract Rent Scenario Difference ( for Interest Appraised) Value Indicated by Direct Capitalization/Yield Analysis (excluding excess land) Plus: Estimated Excess Land Value Value Indication - Income Approach Rounded DIRECT SALES COMPARISON APPROACH/COMPARABLE BUILDING ANALYSIS Comp Sheets Att Subject Comparable # 1 Comparable # 2 Comparable # 3 Address Proximity to Subject Map Reference Data Source 5 Alfred Nobel Drive #137 5 Alfred Nobel #235 Less than.1 miles 3684 NDC 5 Alfred Nobel #2 Less than.1 miles NDC 72 Alfred Nobel.14 miles NDC Gross Building Area Net Building Area ,251 1,251 2,38 2,38 3,55 3,55 Site Size: SF Acres 863 1,251 2,38 3,55 Land-to-Building Ratio Year Built Construction Type Construction Quality Condition Parking Other 1:1 Circa 24 CTU good very good On site and adequate 1:1 Circa 24 CTU good very good On site and adequate 1:1 Circa 24 CTU good very good On site and adequate 1:1 Circa 24 CTU good very good On site and adequate Sale Price N/A 345,5 627,5 68, Date of Sale Exposure Time Property Rights Conveyed Fee 1/1/27 Unknown Fee 11/22/26 Unknown Fee 1/19/26 Unknown Fee Financing CTNL CTNL CTNL CTNL Conditions of Sale Excess Land Non-Realty Interests CE/Terms Adjusted Price 345,5 627,5 68, Other s: Market Conditions Location Quality Condition Tenant improvement Completed Total Other s Indicated Value 16,335 16, ,18 196,18 259, ,675 Per square foot 451, ,68 939,675 Copyright 1999 by The Appraisal Foundation. All rights reserved. Form SP9 "WinTOTAL" appraisal software by a la mode, inc. 1-8-ALAMODE

9 File No Page #8 DIRECT SALES COMPARISON APPROACH/COMPARABLE BUILDING ANALYSIS PAGE 8 (continued) The adjusted values for all six Comparables range from 38 to 451 per square foot. The subject is most to Sales Comparable 1 with a value of 361 per square foot. Please refer to the attached narrative addenda "Discussion of Sales Comparison Approach" for a detailed analysis of the Sales Comparables. FEE SIMPLE OR LEASED FEE OPERATING DATA AND RATIOS Comparable # 1 Comparable # 2 Comparable # 3 Fee Simple or Leased Fee Gross Potential Income Vacancy and Collection Loss% Effective Gross Income Operating Expenses Expenses/SF Gross Building Area Expense Ratio Net Operating Income EGIM Overall Rate Equity Dividend Rate Building Units square foot 863 Value Per Unit 361 /Unit Value Estimate 311,543 Effective Gross Income Effective Gross Income Multiplier (EGIM) x Value Estimate The EGIM was not used in this report. N/A N/A N/A Value Indicated by Direct Sales Comparison Approach (excluding excess land) Plus: Estimated Excess Land Value Plus: for Interest Appraised Value Indication - Direct Sales Comparison Approach Rounded RECONCILIATION AND FINAL VALUE ESTIMATES Cost Approach Indication Income Approach Indication Direct Sales Comparison Approach Indication 311, , , N/A N/A 312, Reconciliation: As discussed in the Sales Approach and the narrative addenda, the subject is most to Sales Comparable 1 and within the range of the adjusted sales. The data supports a concluded value of 361 per square foot or 312, rounded for the subject. Estimated Exposure Time: 9-12 days Extraordinary Assumptions and Limiting Conditions: There are no extraordinary assumptions in this report. Estimated Market Value ''As Is'' 312, Effective Date of Valuation Market Value of Personal Property Included in Appraisal 7/12/28 Market Value of Other Non-Realty Interests Included in Appraisal Copyright 1999 by The Appraisal Foundation. All rights reserved. Form SP9 "WinTOTAL" appraisal software by a la mode, inc. 1-8-ALAMODE

10 File No Page #9 RECONCILIATION AND FINAL VALUE ESTIMATES PAGE 9 (continued) Appraiser # 1 Property Signature Date Inspected Name July 18, 28 Yes No Certification Appraiser # 2 Signature Name Dana Burwell July 18, 28 Yes No Certification No.: 3696 State: California Exp. Date: 12/9/28 CONTENTS OF ADDENDA Legal Description Land Lease Support for Non-Realty Interest Valuation Subject Photographs Segregated Cost Sheet Support for for Interest Appraised Area Map Soils Survey Map Copy of Easement Neighborhood Map Subject Leases Appraiser Qualifications Zoning Map Rental Comparable Data Sheets Flood Zone Map Rent Location Map Topographic Map DCF Analysis Site Sketch Improved Property Sales Data Sheets Site Plan Building Sales Location Map Building Plans Copy of Deed Tax Assessment Card Contract of Sale Land Sales Data Sheets Construction Cost Contract Land Sales Map Support for Personal Property Valuation DEFINITION OF MARKET VALUE The most probable price 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: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and acting in what they consider their best interests; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) 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. ASSUMPTIONS AND LIMITING CONDITIONS 1. As agreed upon with the client prior to the preparation of this appraisal, unless otherwise indicated, this is a Limited Appraisal because it invokes the Departure Provision of the Uniform Standards of Professional Appraisal Practice. As such, information pertinent to the valuation has not been considered and/or the full valuation process has not been applied. Depending on the type and degree of limitations, the reliability of the value conclusion provided herein may be reduced. 2. Unless otherwise indicated, this is a Summary Appraisal Report which is intended to comply with the reporting requirements set forth under Standard Rule 2-2(b) of the Uniform Standards of Professional Appraisal Practice for a Summary Appraisal Report. As such, it might not include full discussions of the data, reasoning and analyses that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation concerning the data, reasoning and analyses is retained in the appraiser's file. The information contained in this report is specific to the needs of the client and for the intended use stated in this report. The appraiser is not responsible for unauthorized use of this report. 3. No responsibility is assumed for legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated in this report. 4. The property is appraised free and clear of any or all liens and encumbrances unless otherwise stated in this report. 5. Responsible ownership and competent property management are assumed unless otherwise stated in this report. 6. The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy. 7. All engineering is assumed to be correct. Any plot plans and illustrative material in this report are included only to assist the reader in visualizing the property. 8. It is assumed that there are no hidden or unapparent 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. 9. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless otherwise stated in this report. 1. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless a nonconformity has been stated, defined, and considered in this appraisal report. 11. It is assumed that all required licenses, certificates of occupancy or other legislative or administrative authority from any local, state, or national governmental or private entity or organization have been or can be obtained or renewed for any use on which the value estimates contained in this report are based. 12. Any sketch in this report may show approximate dimensions and is included to assist the reader in visualizing the property. Maps and exhibits found in this report are provided for reader reference purposes only. No guarantee as to accuracy is expressed or implied unless otherwise stated in this report. No survey has been made for the purpose of this report. 13. It is assumed that the utilization of the land and improvements is within the boundaries or property lines of the property described and that there is no encroachment or trespass unless otherwise stated in this report. (Continued) Copyright 1999 by The Appraisal Foundation. All rights reserved. Form SP9 "WinTOTAL" appraisal software by a la mode, inc. 1-8-ALAMODE

11 File No Page #1 ASSUMPTIONS AND LIMITING CONDITIONS PAGE The appraiser is not qualified to detect hazardous waste and/or toxic materials. Any comment by the appraiser that might suggest the possibility of the presence of such substances should not be taken as confirmation of the presence of hazardous waste and/or toxic materials. Such determination would require investigation by a qualified expert in the field of environmental assessment. The presence of substances such as asbestos, urea-formaldehyde foam insulation or other potentially hazardous materials may affect the value of the property. The appraiser's 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 unless otherwise stated in this report. No responsibility is assumed for any environmental conditions, or for any expertise or engineering knowledge required to discover them. The appraiser's descriptions and resulting comments are the result of the routine observations made during the appraisal process. 15. Unless otherwise stated in this report, the subject property is appraised without a specific compliance survey having been conducted to determine if the property is or is not in conformance with the requirements of the Americans with Disabilities Act. The presence of architectural and communications barriers that are structural in nature that would restrict access by disabled individuals may adversely affect the property's value, marketability, or utility. 16. Any proposed improvements are assumed to be completed in a in accordance with the submitted plans and specifications. 17. 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. 18 Possession of this report, or a copy thereof, does not carry with it the right of publication. It may not be used for any purpose by any person other than the party to whom it is addressed, and in any event, only with proper written qualification and only in its entirety. 19. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraiser, or the firm with which the appraiser is connected), shall be disseminated to the public through advertising, public relations, news sales, or other media without prior written consent and approval of the appraiser. CERTIFICATION I certify that, to the best of my knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, impartial unbiased professional analyses, opinions, and conclusions. 3. I have no present or prospective interest in the property that is the subject of this report and I have no personal interest or bias with respect to the parties involved. 4 I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 5. My engagement in this assignment was no contingen upon developing or reporting predetermined results. 6. 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. 7. This appraisal was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. 8. My analyses, opinions, and conclusions were developed, and this report has been prepared in conformity with the edition of the Uniform Standards of Professional Appraisal Practice current as of the date of the appraisal. 9. Unless otherwise indicated, I have made a personal inspection of the property that is the subject of this report. 1.No one provided significant professional assistance to the person signing this report, unless otherwise indicated. Appraiser's Signature State Certification # 4118 Date July 18, 28 Copyright 1999 by The Appraisal Foundation. All rights reserved. Form SP9 "WinTOTAL" appraisal software by a la mode, inc. 1-8-ALAMODE

12 File No Page #11 UNIFORM COMMERCIAL/INDUSTRIAL SUMMARY APPRAISAL REPORT - SMALL PROPERTY DIRECT SALES COMPARISON APPROACH/COMPARABLE BUILDING ANALYSIS Comp Sheets Att Subject Comparable # 4 Comparable # 5 Comparable # 6 Address Proximity to Subject Map Reference Data Source Gross Building Area Net Building Area 5 Alfred Nobel Drive Alfred Nobel #275 Less than.1 miles NDC 1,46 1, Salvio St miles Loopnet 1,388 1, Lennon Ln 14.8 miles Loopnet 2,378 2,378 Site Size: SF Acres 863 1,46 1,388 2,378 Land-to-Building Ratio 1:1 1:1 1:1 1:1 Year Built Construction Type Construction Quality Condition Parking Other Circa 24 CTU good very good On site and adequate Circa 24 CTU good very good On site and adequate Circa 1985 Concrete Stucco good very good On site and adequate Circa 22 CTU good very good On site and adequate Sale Price N/A 534,5 355, Date of Sale Exposure Time Property Rights Conveyed Fee 3/3/26 Unknown Fee 6/27 Unknown Fee 5/26 Unknown Fee Financing CTNL CTNL CTNL CTNL Conditions of Sale Excess Land Non-Realty Interests CE/Terms Adjusted Price 534,5 355, Other s: Market Conditions Location Quality Condition Tenant improvement Completed Total Other s 124,1 124,1 117,98 117,98 Indicated Value Per square foot 658,6 472,98 Similar Similar Similar Completed 749, 749, 749, Comments: CerPlease see attached narrative in addenda for further discussion. Copyright 1999 by The Appraisal Foundation. All rights reserved. Dana W. Burwell, MAI, ASA Form SP9.(AC) "WinTOTAL" appraisal software by a la mode, inc. 1-8-ALAMODE

13 Subject Photo Page File No Page #12 Borrower Property Address City 5 Alfred Nobel Drive, Ste. 137 Hercules County Contra Costa State Ca Zip Code Lender First Community Bank Subject West Side 5 Alfred Nobel Drive #137 Sales Price N/A Gross Building Area 863 Age Circa 24 Subject Building Entrance Subject Building Foyer Form PIC3x5.SC "WinTOTAL" appraisal software by a la mode, inc. 1-8-ALAMODE

14 Subject Photo Page File No Page #13 Borrower Property Address City 5 Alfred Nobel Drive, Ste. 137 Hercules County Contra Costa State Ca Zip Code Lender First Community Bank Building Common Restroom 5 Alfred Nobel Drive #137 Sales Price N/A Gross Building Area 863 Age Circa 24 Subject Entry Area Subject Office Form PIC3x5.SC "WinTOTAL" appraisal software by a la mode, inc. 1-8-ALAMODE

15 Subject Photo Page File No Page #14 Borrower Property Address City 5 Alfred Nobel Drive, Ste. 137 Hercules County Contra Costa State Ca Zip Code Lender First Community Bank Subject Rear Office 5 Alfred Nobel Drive #137 Sales Price N/A Gross Building Area 863 Age Circa 24 Building Corridor Subject Street Form PIC3x5.SC "WinTOTAL" appraisal software by a la mode, inc. 1-8-ALAMODE

16 Plat Map File No Page #15 Borrower Property Address City 5 Alfred Nobel Drive, Ste. 137 Hercules County Contra Costa State Ca Zip Code Lender First Community Bank Form MAP.PLAT "WinTOTAL" appraisal software by a la mode, inc. 1-8-ALAMODE

17 Location Map File No Page #16 Borrower Property Address City 5 Alfred Nobel Drive, Ste. 137 Hercules County Contra Costa State Ca Zip Code Lender First Community Bank Form MAP.LOC "WinTOTAL" appraisal software by a la mode, inc. 1-8-ALAMODE

18 Aerial Map File No Page #17 Borrower Property Address City 5 Alfred Nobel Drive, Ste. 137 Hercules County Contra Costa State Ca Zip Code Lender First Community Bank Form MAP.Generic "WinTOTAL" appraisal software by a la mode, inc. 1-8-ALAMODE

19 Flood Map File No Page #18 Borrower Property Address City 5 Alfred Nobel Drive, Ste. 137 Hercules County Contra Costa State Ca Zip Code Lender First Community Bank Form MAP.FLOOD "WinTOTAL" appraisal software by a la mode, inc. 1-8-ALAMODE

20 Comparable Photo Page File No Page #19 Borrower Property Address City 5 Alfred Nobel Drive, Ste. 137 Hercules County Contra Costa State Ca Zip Code Lender First Community Bank Comparable 1 5 Alfred Nobel #235 Sales Price 345,5 Gross Building Area 1,251 Age Circa 24 Comparable 2 5 Alfred Nobel #2 Sales Price 627,5 Gross Building Area 2,38 Age Circa 24 Comparable 3 72 Alfred Nobel Sales Price 68, Gross Building Area 3,55 Age Circa 24 Form PIC3x5.CC "WinTOTAL" appraisal software by a la mode, inc. 1-8-ALAMODE

21 Comparable Photo Page File No Page #2 Borrower Property Address City 5 Alfred Nobel Drive, Ste. 137 Hercules County Contra Costa State Ca Zip Code Lender First Community Bank Comparable 4 5 Alfred Nobel #275 Sales Price 534,5 Gross Building Area 1,46 Age Circa 24 Comparable Salvio St. Sales Price 355, Gross Building Area 1,388 Age Circa 1985 Comparable 6 31 Lennon Ln Sales Price 749, Gross Building Area 2,378 Age Circa 22 Form PIC3x5.CC "WinTOTAL" appraisal software by a la mode, inc. 1-8-ALAMODE

22 File No Page #21 Supplemental Addendum File No Borrower Property Address City 5 Alfred Nobel Drive, Ste. 137 Hercules County Contra Costa State Ca Zip Code Lender First Community Bank UCISAR - Small Property : Scope of Work The scope of the appraisal assignment required investigating sufficient data relative to the subject property to derive an opinion of value. The depth of analysis was based on the significance of the appraisal problem. This appraisal assignment is a Complete Appraisal Report (under Standards Rule 2-2, as defined in the Uniform Standards of Professional Appraisal Practice, USPAP) of a Summary Appraisal performed under Standards Rule 1 of the USPAP. The appraisal assignment required the following steps: 1. An inspection of the property and its neighborhood was conducted to determine the physical features and conditions of the subject in addition to its environment and surrounding influences. 2. The appraiser also researched municipal records to ascertain current and historical assessment information and ownership data regarding the subject property. 3. The subject property's current physical and legal conditions were researched in addition to its background and history. 4. The market area was examined to determine existing and proposed inventory, demographics and and marketability of comparable properties. 5. The highest and best use of the property was determined based on the factors of physical possibility, legal permissibility, financial feasibility and maximum productivity. 6. The Cost Approach was not utilized. Comparable sales of properties were researched, inspected and the sales were verified with principles or brokers in the transaction. 7. Based on a review and analysis of the market data, the market value of the subject property was estimated by the Sales Comparison approach to value. 8. The Sales Approach was reconciled and a final value conclusion was derived. The value conclusion is subject to certain assumptions and limiting conditions. Form TADD "WinTOTAL" appraisal software by a la mode, inc. 1-8-ALAMODE

23 Discussion of Sales Comparision Approach - Page 1 File No Page #22 Form SCNLTR "WinTOTAL" appraisal software by a la mode, inc. 1-8-ALAMODE

24 Discussion of Sales Comparision Approach - Page 2 File No Page #23 Form SCNLTR "WinTOTAL" appraisal software by a la mode, inc. 1-8-ALAMODE

25 Tax bill File No Page #24 Form SCNLTR "WinTOTAL" appraisal software by a la mode, inc. 1-8-ALAMODE

26 Certificate File No Page #25 Form SCNLTR "WinTOTAL" appraisal software by a la mode, inc. 1-8-ALAMODE

27 Certificate File No Page #26 Form SCNLTR "WinTOTAL" appraisal software by a la mode, inc. 1-8-ALAMODE