Integra Realty Resources Memphis. Appraisal of Real Property

Transcription

1 Integra Realty Resources Memphis Appraisal of Real Property Retail Property Main Street Southaven, Desoto County, Mississippi Prepared For: Presidential Bank Effective Date of the Appraisal: August 18, 2014 Report Format: Appraisal Report Standard Format IRR Memphis File Number:

2 Main Street Southaven, Mississippi

3 Integra Realty Resources 700 Colonial Road T Memphis Suite 102 F Memphis, TN August 20, 2014 Todd Franken Chief Credit Officer Presidential Bank 4600 East West Highway, Suite 400 Bethesda, MD SUBJECT: Market Value Appraisal Main Street Southaven, Desoto County, Mississippi IRR Memphis File No Dear Mr. Franken: Integra Realty Resources Memphis is pleased to submit the accompanying appraisal of the referenced property. The purpose of the appraisal is to develop an opinion of the market value of the leased fee interest in the property. The client for the assignment is Presidential Bank, and the intended use is for loan underwriting purposes. The appraisal is intended to conform with the Uniform Standards of Professional Appraisal Practice (USPAP), the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute, applicable state appraisal regulations, and the appraisal guidelines of Presidential Bank. The appraisal is also prepared in accordance with the appraisal regulations issued in connection with the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA). To report the assignment results, we use the Appraisal Report option of Standards Rule 2 2(a) of the edition of USPAP. As USPAP gives appraisers the flexibility to vary the level of information in an Appraisal Report depending on the intended use and intended users of the appraisal, we adhere to the Integra Realty Resources internal standards for an Appraisal Report Standard Format. This type of report has a moderate level of detail. It summarizes the information analyzed, the appraisal methods employed, and the reasoning that supports the analyses, opinions, and conclusions. It meets or exceeds the former

4 Todd Franken Presidential Bank August 20, 2014 Page 2 Summary Appraisal Report requirements that were contained in the edition of USPAP. The subject is an existing strip center retail property containing 58,920 square feet of gross leasable area. The improvements were constructed in 1968 and are 100% leased as of the effective appraisal date. The site area is acres or 240,939 square feet. Based on the valuation analysis in the accompanying report, and subject to the definitions, assumptions, and limiting conditions expressed in the report, our opinion of value is as follows: Value Conclusion Appraisal Premise Interest Appraised Date of Value Value Conclusion Market Value Leased Fee August 18, 2014 $3,000,000 Extraordinary Assumptions and Hypothetical Conditions The value conclusions are subject to the following extraordinary assumptions that may affect the assignment results. An extraordinary assumption is uncertain information accepted as fact. If the assumption is found to be false as of the effective date of the appraisal, we reserve the right to modify our value conclusions. 1. For the purpose of this appraisal, we have assumed that the leases are correct and we have relied on the leases in estimating the gross leasable area are the subject property. The value conclusions are based on the following hypothetical conditions that may affect the assignment results. A hypothetical condition is a condition contrary to known fact on the effective date of the appraisal but is supposed for the purpose of analysis. 1. None The opinions of value expressed in this report are based on estimates and forecasts that are prospective in nature and subject to considerable risk and uncertainty. Events may occur that could cause the performance of the property to differ materially from our estimates, such as changes in the economy, interest rates, capitalization rates, financial strength of tenants, and behavior of investors, lenders, and consumers. Additionally, our opinions and forecasts are based partly on data obtained from interviews and third party sources, which are not always completely reliable. Although we are of the opinion that our findings are reasonable based on available evidence, we are not responsible for the effects of future occurrences that cannot reasonably be foreseen at this time.

5 Todd Franken Presidential Bank August 20, 2014 Page 3 If you have any questions or comments, please contact the undersigned. Thank you for the opportunity to be of service. Respectfully submitted, Integra Realty Resources Memphis J. Walter Allen, MAI, FRICS Senior Managing Director

6 Table of Contents Summary of Salient Facts and Conclusions 1 General Information 2 Identification of Subject 2 Current Ownership and Sales History 2 Purpose of the Appraisal 2 Definition of Market Value 2 Definition of Property Rights Appraised 3 Intended Use and User 3 Applicable Requirements 3 Report Format 3 Prior Services 4 Scope of Work 4 Economic Analysis 6 DeSoto County Area Analysis 6 Surrounding Area Analysis 12 Demographic Factors 12 Southaven/Horn Lake Submarket Analysis 15 Supply and Demand Factors 15 Property Analysis 17 Land Description and Analysis 17 Improvements Description and Analysis 20 Real Estate Taxes 27 Highest and Best Use 28 Valuation 30 Valuation Methodology 30 Sales Comparison Approach 31 Analysis and Adjustment of Sales 35 Analysis and Adjustment of Sales 36 Value Indication 38 Income Capitalization Approach 39 Leased Status of Property 39 Market Rent Analysis 40 Stabilized Income and Expenses 50 Capitalization Rate Selection 52 Institutional Vs. Non Institutional Rates 54 Direct Capitalization Analysis 56 Reconciliation and Conclusion of Value 57 Exposure and Marketing Times 58 Certification 59 Assumptions and Limiting Conditions 61 Addenda A. Appraiser Qualifications B. Comparison of Report Formats C. Financials and Property Information D. Comparable Data E. Engagement Letter

7 Summary of Salient Facts and Conclusions 1 Summary of Salient Facts and Conclusions Property Name Address Property Type Owner of Record Tax ID Legal Description Land Area acres; 240,939 square feet Gross Building Area 60,418 SF Gross Leasable Area 58,920 SF Percent Leased 100% Year Built 1968 Zoning Designation Highest and Best Use As if Vacant Highest and Best Use As Improved Exposure Time; Marketing Period Effective Date of the Appraisal C 3, General Commercial District Retail use Continued retail use 6 to 9 months; 6 to 9 months August 18, 2014 Date of the Report August 20, 2014 Property Interest Appraised Leased Fee Market Value Indications Cost Approach Not Used Sales Comparison Approach $2,650,000 ($44.98/SF) Income Capitalization Approach $3,000,000 ($50.92/SF) Market Value Conclusion $3,000,000 ($50.92/SF) Main Street Southaven, Desoto County, Mississippi Retail Shopping Center LLC , , and Part of the northwest quarter and part of the northeast quarter of the northeast quarter of Section 23, Township 1 South, Range 8 West, DeSoto County, Southaven, Mississippi The values reported above are subject to the definitions, assumptions, and limiting conditions set forth in the accompanying report of which this summary is a part. No party other than Presidential Bank may use or rely on the information, opinions, and conclusions contained in the report. It is assumed that the users of the report have read the entire report, including all of the definitions, assumptions, and limiting conditions contained therein. Extraordinary Assumptions and Hypothetical Conditions The value conclusions are subject to the following extraordinary assumptions that may affect the assignment results. An extraordinary assumption is uncertain information accepted as fact. If the assumption is found to be false as of the effective date of the appraisal, we reserve the right to modify our value conclusions. 1. For the purpose of this appraisal, we have assumed that the leases are correct and we have relied on the leases in estimating the gross leasable area are the subject property. The value conclusions are based on the following hypothetical conditions that may affect the assignment results. A hypothetical condition is a condition contrary to known fact on the effective date of the appraisal but is supposed for the purpose of analysis. 1. None

8 General Information 2 General Information Identification of Subject The subject is an existing strip center retail property containing 58,920 square feet of gross leasable area. The improvements were constructed in 1968 and are 100% leased as of the effective appraisal date. The site area is acres or 240,939 square feet. A legal description of the property is in the addenda. Property Identification Property Name Address Main Street Southaven, Mississippi Tax ID , , and Legal Description Part of the northwest quarter and part of the northeast quarter of the northeast quarter of Section 23, Township 1 South, Range 8 West, DeSoto County, Southaven, Mississippi Current Ownership and Sales History The owner of record is LLC. To the best of our knowledge, no other sale or transfer of ownership has occurred within the past three years, and as of the effective date of this appraisal, the property is not subject to an agreement of sale or option to buy, nor is it listed for sale. Purpose of the Appraisal The purpose of the appraisal is to develop an opinion of the market value of the leased fee interest in the property as of the effective date of the appraisal, August 18, The date of the report is August 20, The appraisal is valid only as of the stated effective date or dates. Definition of Market Value Market value is defined as: 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: Buyer and seller are typically motivated; Both parties are well informed or well advised, and acting in what they consider their own best interests; A reasonable time is allowed for exposure in the open market;

9 General Information 3 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. (Source: Code of Federal Regulations, Title 12, Chapter I, Part 34.42[g]; also Interagency Appraisal and Evaluation Guidelines, Federal Register, 75 FR 77449, December 10, 2010, page 77472) Definition of Property Rights Appraised Leased fee interest is defined as, 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). Lease is defined as, A contract in which rights to use and occupy land or structures are transferred by the owner to another for a specified period of time in return for a specified rent. (Source: The Dictionary of Real Estate Appraisal, Fifth Edition, Appraisal Institute, Chicago, Illinois, 2010) Intended Use and User The intended use of the appraisal is for loan underwriting purposes. The client and intended user is Presidential Bank. The appraisal is not intended for any other use or user. No party or parties other than Presidential Bank may use or rely on the information, opinions, and conclusions contained in this report. Applicable Requirements This appraisal is intended to conform to the requirements of the following: Uniform Standards of Professional Appraisal Practice (USPAP); Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute; Applicable state appraisal regulations; Appraisal requirements of Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), revised June 7, 1994; Interagency Appraisal and Evaluation Guidelines issued December 10, 2010; Appraisal guidelines of Presidential Bank. Report Format This report is prepared under the Appraisal Report option of Standards Rule 2 2(a) of the edition of USPAP. As USPAP gives appraisers the flexibility to vary the level of information in an Appraisal Report depending on the intended use and intended users of the appraisal, we adhere to the Integra Realty Resources internal standards for an Appraisal Report Standard Format. This type of report has a moderate level of detail. It summarizes the information analyzed, the appraisal

10 General Information 4 methods employed, and the reasoning that supports the analyses, opinions, and conclusions. It meets or exceeds the former Summary Appraisal Report requirements that were contained in the edition of USPAP. For additional information, please refer to Addendum B Comparison of Report Formats. Prior Services USPAP requires appraisers to disclose to the client any other services they have provided in connection with the subject property in the prior three years, including valuation, consulting, property management, brokerage, or any other services. We have not performed any services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three year period immediately preceding acceptance of this assignment. Scope of Work To determine the appropriate scope of work for the assignment, we considered the intended use of the appraisal, the needs of the user, the complexity of the property, and other pertinent factors. Our concluded scope of work is described below. Valuation Methodology Appraisers usually consider the use of three approaches to value when developing a market value opinion for real property. These are the cost approach, sales comparison approach, and income capitalization approach. Use of the approaches in this assignment is summarized as follows: Approaches to Value Approach Applicability to Subject Use in Assignment Cost Approach Not Applicable Not Utilized Sales Comparison Approach Applicable Utilized Income Capitalization Approach Applicable Utilized The income capitalization approach is the most reliable valuation method for the subject due to the following: The probable buyer of the subject would base a purchase price decision primarily on the income generating potential of the property and an anticipated rate of return. Sufficient market data regarding income, expenses, and rates of return, is available for analysis. The sales comparison approach is an applicable valuation method because: There is an active market for similar properties, and sufficient sales data is available for analysis. This approach directly considers the prices of alternative properties having similar utility. The cost approach is not applicable to the assignment considering the following:

11 General Information 5 The age of the property would limit the reliability of an accrued depreciation estimate. There are limited land transactions in the market area of the subject, making estimates of underlying land value subjective. This approach is not typically used by market participants, except for new or nearly new properties. Research and Analysis The type and extent of our research and analysis is detailed in individual sections of the report. This includes the steps we took to verify comparable sales, which are disclosed in the comparable sale profile sheets in the addenda to the report. Although we make an effort to confirm the arms length nature of each sale with a party to the transaction, it is sometimes necessary to rely on secondary verification from sources deemed reliable. Inspection J. Walter Allen, MAI, FRICS, conducted an interior and exterior inspection of the property on August 18, Significant Appraisal Assistance It is acknowledged that Quinton C. Robinson made a significant professional contribution to this appraisal, consisting of participating in the property inspection, conducting research on the subject and transactions involving comparable properties, performing appraisal analyses, and assisting in report writing, under the supervision of the persons signing the report.

12 DeSoto County Area Analysis 6 Economic Analysis DeSoto County Area Analysis DeSoto County is located in northern Mississippi. It is 476 square miles in size and has a population density of 351 persons per square mile. DeSoto County is part of the Memphis, TN MS AR Metropolitan Statistical Area, hereinafter called the Memphis MSA, as defined by the U.S. Office of Management and Budget. Population DeSoto County has an estimated 2013 population of 167,335, which represents an average annual 1.2% increase over the 2010 census of 161,252. DeSoto County added an average of 2,028 residents per year over the period, and its annual growth rate exceeded the State of Mississippi rate of 0.3%. Looking forward, DeSoto County's population is projected to increase at a 1.0% annual rate from , equivalent to the addition of an average of 1,664 residents per year. DeSoto County's growth rate is expected to exceed that of Mississippi, which is projected to be 0.2%. Employment Trends in employment are a key indicator of economic health and strongly correlate with real estate demand. Total employment in DeSoto County is currently estimated at 48,089 jobs. Between year end 2002 and the present, employment rose by 13,574 jobs, equivalent to a 39.3% increase over the entire period. There were gains in employment in eight out of the past ten years despite two national economic downturns during this time. Job growth in DeSoto County turned positive in 2010 and has remained so. Given the rise in employment over the last decade, DeSoto County fared better than Mississippi, which experienced a decline in employment of 1.3% or 14,780 jobs over this period. Employment data is shown in the table that follows.

13 DeSoto County Area Analysis 7 Unemployment rate trends are another way of gauging an area s economic health. Over the past decade, the DeSoto County unemployment rate has been consistently lower than that of Mississippi, with an average unemployment rate of 5.3% in comparison to a 7.9% rate for Mississippi. This is another indication of the strength of the DeSoto County economy over the longer term. Recent data shows that the DeSoto County unemployment rate is 7.0% in comparison to a 10.7% rate for Mississippi, a positive sign that is consistent with the fact that DeSoto County has outperformed Mississippi in the rate of job growth over the past two years. Major employers in DeSoto County are shown in the following table.

14 DeSoto County Area Analysis 8 Gross Domestic Product Gross Domestic Product (GDP) is a measure of economic activity based on the total value of goods and services produced in a defined geographic area. Although GDP figures are not available at the county level, data reported for the Memphis MSA is considered meaningful when compared to the nation overall, as DeSoto County is part of the MSA and subject to its influence. Economic growth, as measured by annual changes in GDP, has been considerably lower in the Memphis MSA than the United States overall during the past eight years. The Memphis MSA has declined at a 0.3% average annual rate while the United States has grown at a 1.0% rate. As the national economy recovers from the downturn of , the Memphis MSA continues to underperform the United States. GDP for the Memphis MSA rose by 0.1% in 2011 while the United States GDP rose by 1.5%. The Memphis MSA has a per capita GDP of $42,127, which is approximately the same as the United States GDP of $42,070.

15 DeSoto County Area Analysis 9 The figures in the table above represent inflation adjusted real GDP stated in 2005 dollars. Income, Education and Age DeSoto County is more affluent than Mississippi. Median household income for DeSoto County is $55,493, which is 50.4% greater than the corresponding figure for Mississippi. Residents of DeSoto County have a slightly higher level of educational attainment than those of Mississippi. An estimated 21% of DeSoto County residents are college graduates with four year degrees, versus 20% of Mississippi residents. People in DeSoto County are similar in age to their Mississippi counterparts. The median age of both DeSoto County and Mississippi is 36 years.

16 DeSoto County Area Analysis 10 Education & Age 2013 Percent College Graduate Median Age 80% 70% 60% 50% 40% 30% 20% 10% DeSoto County, MS 21% 20% Mississippi DeSoto County, MS Mississippi Source: Claritas Conclusion As the nation recovers from the recession, economic conditions in DeSoto County have improved as indicated by the growth in employment. Over the long term, DeSoto County will benefit from a growing population base and higher income and education levels. DeSoto County experienced growth in the number of jobs and has maintained a consistently lower unemployment rate than Mississippi over the past decade. Based on these factors, we anticipate that the DeSoto County economy will recover and employment will grow, strengthening the demand for real estate.

17 DeSoto County Area Analysis 11 Area Map

18 Surrounding Area Analysis 12 Surrounding Area Analysis Location Primary access to the area is provided by Interstate 55. Secondary access is provided by U.S. Highway 51, Stateline Road (Main Street), and MS Highway 302 (Goodman Road). No public transportation is provided in Southaven. However, this does not have a negative impact on the subject because it is uncommon for suburban areas of Memphis to have public transportation. Overall, the primary mode of transportation in the area is the automobile. Demographic Factors Demographic and Income Profile Zip Code: (Southaven, MS) Prepared by IRR Memphis Summary Census Population 34,660 35,370 36,849 Households 13,071 13,298 13,821 Families 9,248 9,350 9,642 Average Household Size Owner Occupied Housing Units 8,361 8,627 9,107 Renter Occupied Housing Units 4,710 4,671 4,714 Median Age Trends: Annual Rate Area State National Population 0.82% 0.47% 0.71% Households 0.77% 0.54% 0.74% Families 0.62% 0.36% 0.63% Owner HHs 1.09% 0.61% 0.94% Median Household Income 2.66% 3.51% 3.03% Households by Income <$15,000 $15,000 - $24,999 $25,000 - $34,999 $35,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $149,999 $150,000 - $199,999 $200,000+ Number 1,5 02 1,768 1,387 2,286 3,241 1,750 1, Percent 11.3% 13.3% 10.4% 17.2% 24.4% 13.2% 8.0% 1.6% 0.7% Number 1,4 48 1,264 1,128 2,070 3,970 2,245 1, Percent 10.5 % 9.1% 8.2% 15.0 % 28.7% 16.2 % 9.2% 2.2% 0.9% Median Household Income $47,443 $54,093 Average Household Income $55,863 $62,902 Per Capita Income $21,074 $23,661 Data Note: Income is expressed in current dollars. Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2013 and In 2010, the population was 34,660. The population increased by 710 people, or 2% by The projected population for 2018 of 36,849 shows an increase of 1,479 people, or 4%. The 2013 median household income within the zip code is $47,443. The projection for 2018 shows an increase of $6,650, or 14%, in the median household income level. As evidenced by the data above, the subject s market area is well below the median household income for the DeSoto County area as a whole.

19 Surrounding Area Analysis 13 Land Use The area is suburban in character and approximately 70% developed. Land uses immediately surrounding the subject are predominantly residential and commercial with typical ages of building improvements being over 10 years old. Property types adjoining the subject include single family residential, free standing commercial, a sit down restaurant, an automotive repair facility, and strip retail. Nearby Retail Uses Restaurants, convenience stores, branch banks and support services are located along Goodman Road (State Highway 302), within 2 miles of the property. The closest lodging facilities are located within 5 minutes of the property and include national chain and budget hotels. The nearest fire and police stations are within 2 miles of the property. Outlook and Conclusions Overall, Southaven is in the development stage of its life cycle. Recent development activity has curtailed due to the recession and the resulting downturn in the real estate market. The subject property is located west of Interstate 55 near the Tennessee/Mississippi state line. This immediate area is in a static to declining stage of its life cycle. National retailers have migrated from this area south to Goodman Road, the major retail corridor in the area. The result has been declining rents and absorption rates in the subject s immediate area. Given the history of the area and the historical growth trends it is our opinion that property values will remain stable in the near future.

20 Surrounding Area Analysis 14 Surrounding Area Map

21 Southaven/Horn Lake Submarket Analysis 15 Southaven/Horn Lake Submarket Analysis The subject is located in the Southaven/Horn Lake retail submarket. National retailers and restaurants tend to be clustered around the Interstate 55 interchange corridor which is the retail center of Southaven. Supply and Demand Factors The Southaven/Horn Lake submarket contains a total inventory of 6,750,205 square feet of leasable area, which represents an 8.2% market share of the overall Memphis metropolitan area retail market. The Southaven/Horn Lake submarket is the sixth largest of the 17 submarkets in the Memphis metropolitan area. Southaven/Horn Lake Retail Market Summary Year Total RBA Vacancy Rate Net Absorption Completions Quoted Rates ,698, % 109,159 65,322 $ ,698, % 3, $ ,725, % 54,296 26,472 $ ,742, % 87,265 7,200 $ Q ,750, % 5,688 7,617 $13.23 Source: The CoStar Retail Report Compiled by IRR, 2014 The largest concentration of space is found in the general retail category, with 3,036,004 square feet, or 44.9% of the total submarket. The balance of the market, shopping center properties, consist of 2,679,289 square feet, or 39.6% of the total submarket, and power centers consist of 416,427 square feet, or 6.1% of the total submarket. The shopping center classification includes community centers, neighborhood centers, and strip centers. The subject is categorized as a shopping center property in the CoStar Report. Shopping center properties range in age from 10 to 40 years old. The following table lists all categories of spaces and current market conditions for the Southaven/Horn Lake submarket. Southaven/Horn Lake Retail Submarket Statistics 2nd Quarter 2014 Class Total RBA Vacancy Rate YTD YTD Under Quoted Absorption Completions Construction Rates General Retail 3,036, % 24,059 7,617 13,973 $11.29 Shopping Center 2,679, % 18, $13.53 Power Center 416, % $0.00 Mall 481, % $30.00 Specialty Center 137, % $0.00 Total/Average 6,750, % 5,688 7,617 13,973 $13.23 Source: The CoStar Retail Report Compiled by IRR, 2014

22 Southaven/Horn Lake Submarket Analysis 16 The submarket vacancy rate has been decreasing since The vacancy rate is expected to stabilize in the near future. The average quoted rental rate has fluctuated since Rents are expected to stabilize in the near future. Retail rents in the table above are reported on a triple net basis. We note that the average quoted rent is significantly higher than the average contract rent at the subject. The difference is related to the superior age/condition of most shopping center properties in the market area. Overall, market conditions are stable, and this is expected to have a favorable impact on the occupancy and income potential of the subject.

23 Land Description and Analysis 17 Property Analysis Land Description and Analysis Land Description Land Area acres; 240,939 square feet Source of Land Area Survey Primary Street Frontage Main Street 261 feet Shape Irregular Corner No Topography Generally level and at street grade Drainage No problems reported or observed Environmental Hazards None reported or observed Ground Stability No problems reported or observed Flood Area Panel Number 28033C0057G Date June 4, 2007 Zone X Description Outside of 500 year floodplain Insurance Required? No Zoning; Other Regulations Zoning Jurisdiction DeSoto County Zoning Designation C 3 Description General Commercial District Legally Conforming? Yes Zoning Change Likely? No Permitted Uses Most commercial uses Other Land Use Regulations None Utilities Service Provider Water City of Southaven Sewer City of Southaven Electricity Entergy Natural Gas Atmos Gas Local Phone AT&T

24 Land Description and Analysis 18 Easements, Encroachments and Restrictions We were not provided a current title report to review. We are not aware of any easements, encroachments, or restrictions that would adversely affect value. Our valuation assumes no adverse impacts from easements, encroachments, or restrictions, and further assumes that the subject has clear and marketable title. Conclusion of Land Analysis Overall, the physical characteristics of the site and the availability of utilities result in functional utility suitable for a variety of uses including those permitted by zoning. We are not aware of any other particular restrictions on development. Aerial View

25 Land Description and Analysis 19 Survey

26 Improvements Description and Analysis 20 Improvements Description and Analysis The subject is an existing strip center retail property containing 58,920 square feet of gross leasable area. The improvements were constructed in 1968 and are 100% leased as of the effective appraisal date. The site area is acres or 240,939 square feet. Improvements Description Overall Property Building 1 Building 2 Building 3 Name of Property General Property Type Retail Retail Retail Retail Property Sub Type Shopping Center Shopping Center Shopping Center Shopping Center Occupancy Type Multi Tenant Multi Tenant Multi Tenant Multi Tenant Percent Leased 100% 100% 100% 100% Number of Tenants Tenant Size Range (SF) , Number of Buildings Stories Construction Class C C C C Construction Type Masonry Masonry Masonry Masonry Construction Quality Average Average Average Average Condition Average Average Average Average Gross Building Area (SF) 60,418 17,184 10,009 33,225 Gross Leasable Area (SF) 58,920 16,817 9,993 32,110 Land Area (SF) 240,939 Floor Area Ratio (GLA/Land SF) 0.24 Building Area Source Inspection/Leases/ Rent Roll Inspection/Leases/ Rent Roll Inspection/Leases/ Rent Roll Inspection/Leases/ Rent Roll Year Built Actual Age (Yrs.) Estimated Effective Age (Yrs.) Estimated Economic Life (Yrs.) Remaining Economic Life (Yrs.) Number of Parking Spaces 243 Parking Type Surface Parking Spaces/1,000 SF GLA 4.12 The subject property consists of three buildings. Building One is located on the northwest portion of the property and contains 17,184 square feet of gross building area or 16,817 square feet of gross leasable area. Building Two is located on the southwest portion of the property and contains 10,009 square feet of gross building area or 9,993 square feet of gross leasable area. Building Three is located on the southeast portion of the property and contains 33,225 square feet of gross building area or 32,110 square feet of gross leasable area.

27 Improvements Description and Analysis 21 Construction Details Foundation Structural Frame Exterior Walls Windows Roof Floors Walls Ceilings Lighting HVAC Electrical Plumbing Utility Meters Tenants Elevators Sprinklers Security Poured concrete Concrete block Brick veneer Storefront aluminum Built up commercial Carpet and Vinyl tiles Painted drywall Acoustical tiles Fluorescent Package systems Adequate Adequate Individual metered None Adequate Tenant installed Improvements Analysis Quality and Condition The quality and condition of the subject is considered to be similar to that of competing properties considering its age/condition. Functional Utility The improvements appear to be adequately suited to their current use, and there do not appear to be any significant items of functional obsolescence. Deferred Maintenance No deferred maintenance is apparent from our inspection. ADA Compliance Based on our inspection and information provided, we are not aware of any ADA issues. However, we are not expert in ADA matters, and further study by an appropriately qualified professional would be recommended to assess ADA compliance. Hazardous Substances An environmental assessment report was not provided for review and environmental issues are beyond our scope of expertise. No hazardous substances were observed during our inspection of the improvements; however, we are not qualified to detect such substances. Unless otherwise stated, we assume no hazardous conditions exist on or near the subject.

28 Improvements Description and Analysis 22 Conclusion of Improvements Analysis In comparison to other competitive properties in the region, the subject improvements are rated as follows: Improvements Ratings Visibility Design and Appearance Age/Condition Adaptability of Space to other Retail Users Layout Store to Store Proximity Parking Ratios Distance of Parking to Building Access Anchor Tenants Distance of Parking to Store Access Average Below Average Average Average Average Average Average Below Average Average Overall, the quality, condition, and functional utility of the improvements are average for their age and location.

29 Improvements Description and Analysis 23 Front View of Building One (Photo Taken on August 18, 2014) Rear View of Building One (Photo Taken on August 18, 2014) Front View of Building Two (Photo Taken on August 18, 2014) Rear View of Building Two (Photo Taken on August 18, 2014) Front View of Building Three (Photo Taken on August 18, 2014) Rear View of Building Three (Photo Taken on August 18, 2014)

30 Improvements Description and Analysis 24 View of Typical Small Shop Space Building 1 Suite 1287 B (Photo Taken on August 18, 2014) View of Typical Small Shop Space Building 1 Suite 1293 (Photo Taken on August 18, 2014) View of Typical Small Shop Space Building 1 Suite 1295 (Photo Taken on August 18, 2014) View of Typical Large Shop Space Building 2 Suite 1263 (Photo Taken on August 18, 2014) View of Typical Small Shop Space Building 2 Suite 1267 (Photo Taken on August 18, 2014) View of Typical Large Shop Space Building 2 Suite 1273 (Photo Taken on August 18, 2014)

31 Improvements Description and Analysis 25 View of the Corridor Between Building 2 and Building 3 (Photo Taken on August 18, 2014) View of Typical Large Shop Space Building 3 Suite (Photo Taken on August 18, 2014) View of Typical Large Shop Space Suite 1225 B (Photo Taken on August 18, 2014) View of Typical Small Shop Space Building 3 Suite 1259 (Photo Taken on August 18, 2014) East View Along Main Street (Photo Taken on August 18, 2014) West View Along Main Street (Photo Taken on August 18, 2014)

32 Improvements Description and Analysis 26 Site Plan

33 Real Estate Taxes 27 Real Estate Taxes Real estate tax assessments are administered by DeSoto County and are estimated by jurisdiction on a county basis for the subject. Real estate taxes in this state and this jurisdiction represent ad valorem taxes, meaning a tax applied in proportion to value. The real estate taxes for an individual property may be determined by dividing the assessed value for a property by 100, then multiplying the estimate by the millage rate. The assessed values are based upon the current conversion assessment rate of 15% of Assessor s market value. Real estate taxes and assessments for the current tax year are shown in the following table. Assessor's Market Value Tax ID Land Improvements Total $254,826 $1,040,648 $1,295, $65,340 $152,747 $218, $35,337 $0 $35,337 $355,503 $1,193,395 $1,548,898 Taxes and Assessments Assessed Value Taxes and Assessments Ad Valorem Tax ID Land Improvements Total Tax Rate Taxes Direct Assessments Total $38,224 $156,097 $194, % $27,677 $51 $27, $9,801 $22,912 $32, % $4,659 $13 $4, $5,301 $0 $5, % $755 $13 $768 $53,325 $179,009 $232,335 $33,091 $77 $33,168

34 Highest and Best Use 28 Highest and Best Use Process Before a property can be valued, an opinion of highest and best use must be developed for the subject site, both as if vacant, and as improved or proposed. By definition, the highest and best use must be: Physically possible. Legally permissible under the zoning regulations and other restrictions that apply to the site. Financially feasible. Maximally productive, i.e., capable of producing the highest value from among the permissible, possible, and financially feasible uses. As If Vacant Physically Possible The physical characteristics of the site do not appear to impose any unusual restrictions on development. Overall, the physical characteristics of the site and the availability of utilities result in functional utility suitable for a variety of uses. Legally Permissible The site is zoned C 3, General Commercial District. Permitted uses include most commercial uses. To our knowledge, there are no legal restrictions such as easements or deed restrictions that would effectively limit the use of the property. Given prevailing land use patterns in the area, only a retail use is given further consideration in determining highest and best use of the site, as though vacant. Financially Feasible Based on our analysis of the market, there is limited demand for additional retail development at the current time. It appears that a newly developed retail use on the site would not have a value commensurate with its cost; therefore, a retail use is not considered to be financially feasible. Nevertheless, we expect an eventual recovery of the market accompanied by a rise in property values to a level that will justify the cost of new construction. Thus, it is anticipated that a retail development will become financially feasible in the future. Maximally Productive There does not appear to be any reasonably probable use of the site that would generate a higher residual land value than holding the property for future development of a retail use. Accordingly, it is our opinion that holding the property for a future retail use, based on the normal market density level permitted by zoning, is the maximally productive use of the property. Conclusion Holding the property for future development of a retail use is the only use that meets the four tests of highest and best use. Therefore, it is concluded to be the highest and best use of the property as if vacant.

35 Highest and Best Use 29 As Improved The subject site is developed with a multitenant neighborhood retail strip center containing 58,920 square feet of gross leasable area, which is consistent with the highest and best use of the site as if it were vacant. The existing improvements are currently 100% leased and produce a significant positive cash flow that we expect will continue. Therefore, a continuation of this use is concluded to be financially feasible. Based on our analysis, there does not appear to be any alternative use that could reasonably be expected to provide a higher present value than the current use, and the value of the existing improved property exceeds the value of the site, as if vacant. For these reasons, continued retail use is concluded to be maximally productive and the highest and best use of the property as improved. Most Probable Buyer Taking into account the size and characteristics of the property and its multitenant occupancy, the likely buyer is a local/regional investor such as a partnership.

36 Valuation Methodology 30 Valuation Valuation Methodology Appraisers usually consider three approaches to estimating the market value of real property. These are the cost approach, sales comparison approach and the income capitalization approach. The cost approach assumes that the informed purchaser would pay no more than the cost of producing a substitute property with the same utility. This approach is particularly applicable when the improvements being appraised are relatively new and represent the highest and best use of the land or when the property has unique or specialized improvements for which there is little or no sales data from comparable properties. The sales comparison approach assumes that an informed purchaser would pay no more for a property than the cost of acquiring another existing property with the same utility. This approach is especially appropriate when an active market provides sufficient reliable data. The sales comparison approach is less reliable in an inactive market or when estimating the value of properties for which no directly comparable sales data is available. The sales comparison approach is often relied upon for owner user properties. The income capitalization approach reflects the market s perception of a relationship between a property s potential income and its market value. This approach converts the anticipated net income from ownership of a property into a value indication through capitalization. The primary methods are direct capitalization and discounted cash flow analysis, with one or both methods applied, as appropriate. This approach is widely used in appraising income producing properties. Reconciliation of the various indications into a conclusion of value is based on an evaluation of the quantity and quality of available data in each approach and the applicability of each approach to the property type. The methodology employed in this assignment is summarized as follows: Approaches to Value Approach Applicability to Subject Use in Assignment Cost Approach Not Applicable Not Utilized Sales Comparison Approach Applicable Utilized Income Capitalization Approach Applicable Utilized

37 Sales Comparison Approach 31 Sales Comparison Approach The sales comparison approach develops an indication of value by comparing the subject to sales of similar properties. The steps taken to apply the sales comparison approach are: Identify relevant property sales; Research, assemble, and verify pertinent data for the most relevant sales; Analyze the sales for material differences in comparison to the subject; Reconcile the analysis of the sales into a value indication for the subject. To apply the sales comparison approach, we searched for sale transactions within the following parameters: Property Type: Strip retail centers Location: DeSoto County Size: < 50,000 Square feet Age/Quality: Class C Transaction Date: 2011 through Effective Date After an extensive search within these parameters, limited sales were found in the DeSoto County market area within the last three years. Therefore, we expanded our search to include sales that are located in Mississippi and the Memphis Metropolitan Statistical Area that have similar demographic characteristics, i.e. median and average household incomes and retail goods and services expenditures based upon market trade area analysis. For this analysis, we use price per square foot of gross leasable area as the appropriate unit of comparison because market participants typically compare sale prices and property values on this basis. The most relevant sales are summarized in the following table.

38 Sales Comparison Approach 32 Summary of Comparable Improved Sales No. Name/Address Sale Date; Status Yr. Built; # Stories; % Occ. Acres; FAR; Parking Ratio Subtype; Anchor 1; Anchor 2 Effective Sale Price Leasable SF $/Leasable SF Cap Rate 1 Retail Strip Center Jun Strip/Convenience $813,000 16,255 $ % 4271 Elvis Presley Closed Memphis 95% Shelby County TN Comments: Sale of retail strip center located on Elvis Presley Boulevard in Whitehaven area of south Memphis. Property was 100% leased at the time of sale, and rental rates ranged from $7 $9/SF Gross. Broker indicated that the property sold at a 12% capitalization rate based upon a negotiated pro forma due to some leases coming up for renewal or termination that had options to renew. Tenants include Rent A Center, Simply Fashion, and Catherine s clothing store. 2 Quitman Retail Center Aug Strip/Convenience $1,592,438 34,700 $ % 548 S. Archusa Ave. Closed Greer's Food Tiger Quitman 90% 4.38/1,000 Family Dollar Clarke County MS Comments: This comparable represents the sale of the Quitman Retail Center located at 548 South Archusa Avenue in Quitman, MS. The sale of this center was part of a three property portfolio sale. Based on the cap rate, the sales price was $1,592,438. Tenants at the time of the sale included Greers and Family Dollar. 3 Southgate Shopping Apr Neighborhood Center $1,250,000 49,500 $ % S. Adams Closed Food Giant Fulton 72% Fred's Itawamba County MS Comments: Sale of a potion of a neighborhood shopping center anchored by a Food Giant and Fred's store. The sale did not include the Food Giant grocery. The center is located in the small town of Fulton, just east of Tupleo, MS. 4 Shelby Crossing Shopping Mar Strip/Convenience $1,150,000 32,140 $ % 6100 Macon Road Closed Memphis 2.80/1,000 Shelby County TN Comments: Sale of a neighborhood shopping center in the Northeast retail submarket. The property was 83% leased at the time of sale. The capitalization rate is based upon the appraisers projection of stabilized operating expenses. An outdoor advertising sign, which is ground leased, is also located on the site. Subject Shopping Center 58, Southaven, MS 100% 4.12/1,000

39 Sales Comparison Approach 33 Comparable Improved Sales Map

40 Sales Comparison Approach 34 Sale 1 Retail Strip Center Sale 2 Quitman Retail Center Sale 3 Southgate Shopping Center Sale 4 Shelby Crossing Shopping Center

41 Sales Comparison Approach 35 Analysis and Adjustment of Sales The sales are compared to the subject and adjusted to account for material differences that affect value. Adjustments are considered for the following factors, in the sequence shown below. Adjustment Factors Effective Sale Price Real Property Rights Financing Terms Conditions of Sale Market Conditions Location Access/Exposure Size Parking Building to Land Ratio Building Quality Age/Condition Economic Characteristics Accounts for atypical economics of a transaction, such as excess land, non realty components, expenditures by the buyer at time of purchase, or other similar factors. Usually applied directly to sale price on a lump sum basis. Leased fee, fee simple, leasehold, partial interest, etc. Seller financing, or assumption of existing financing, at non market terms. Extraordinary motivation of buyer or seller, such as 1031 exchange transaction, assemblage, or forced sale. Changes in the economic environment over time that affect the appreciation and depreciation of real estate. Market or submarket area influences on sale price; surrounding land use influences. Convenience to transportation facilities; ease of site access; visibility from main thoroughfares; traffic counts. Inverse relationship that often exists between building size and unit value. Ratio of parking spaces to building area. Ratio of building area to land area; also known as floor area ratio (FAR). Construction quality, amenities, market appeal, functional utility. Effective age; physical condition. Non stabilized occupancy, above/below market rents, and other economic factors. Excludes differences in rent levels that are already considered in previous adjustments, such as for location or quality Issues requiring elaboration are addressed in the following paragraphs. Economic Characteristics This adjustment category generally reflects material differences between the subject s net operating income and the net operating income of the comparables on a per square foot basis. Characteristics that affect the net operating income of a property include occupancy level, contract rental rates, and

42 Sales Comparison Approach 36 operating expenses. As a result, location, building quality, functional utility, and age/condition are also addressed in the economic characteristics adjustment because each of these characteristics affects contract rent and ultimately net operating income. Analysis and Adjustment of Sales The analysis and adjustment of the comparable sales is discussed in the following paragraphs. Sale 1 is Retail Strip Center, located at 4271 Elvis Presley Boulevard, Memphis, Shelby County, TN, a 16,255 square foot retail property. The property sold in June 2013 for $813,000, or $50.02 per square foot. A downward adjustment is made for superior economic characteristics based upon a comparison of the subject's projected NOI. Sale 2 is Quitman Retail Center, located at 548 S. Archusa Ave., Quitman, Clarke County, MS, a 34,700 square foot retail property. The property sold in August 2011 for $1,592,438, or $45.89 per square foot. No adjustments are applied. Sale 3 is Southgate Shopping Center, located at S. Adams Street, Fulton, Itawamba County, MS, a 49,500 square foot retail property. The property sold in April 2011 for $1,250,000, or $25.25 per square foot. An upward adjustment is made for inferior economic characteristics based upon a comparison of the subject's projected NOI Sale 4 is Shelby Crossing Shopping Center, located at 6100 Macon Road, Memphis, Shelby County, TN, a 32,140 square foot retail property. The property sold in March 2014 for $1,150,000, or $35.78 per square foot. An upward adjustment is applied due o the sale being a bank sale. A downward adjustment is made for superior economic characteristics based upon a comparison of the subject's projected NOI.

43 Sales Comparison Approach 37 The following table summarizes the adjustments we make to each sale. Improved Sales Adjustment Grid Subject Comparable 1 Comparable 2 Comparable 3 Comparable 4 Property Name Retail Strip Center Quitman Retail Center Southgate Shopping Center Shelby Crossing Shopping Center Address Main 4271 Elvis Presley 548 S. Archusa S Macon Road Street Boulevard Ave. Adams Street City Southaven Memphis Quitman Fulton Memphis County Desoto Shelby Clarke Itawamba Shelby State Mississippi TN MS MS TN Sale Date Jun 13 Aug 11 Apr 11 Mar 14 Sale Status Closed Closed Closed Closed Sale Price $813,000 $1,592,438 $1,250,000 $1,150,000 Price Adjustment Description of Adjustment Effective Sale Price $813,000 $1,592,438 $1,250,000 $1,150,000 Gross Building Area 60,418 16,255 35,467 53,200 32,140 Gross Leasable Area 58,920 16,255 34,700 49,500 32,140 Database ID Price per SF of Gross Leasable Area $50.02 $45.89 $25.25 $35.78 Property Rights Leased Fee Leased Fee Leased Fee Leased Fee % Adjustment Financing Terms Cash to seller Cash to seller Cash to seller Cash to seller % Adjustment Conditions of Sale Bank Sale % Adjustment 25% Market Conditions 8/18/2014 Jun 13 Aug 11 Apr 11 Mar 14 Annual % Adjustment Cumulative Adjusted Price $50.02 $45.89 $25.25 $44.73 Location Access/Exposure Size Parking Building to Land Ratio (FAR) Building Quality Age/Condition Economic Characteristics 15% 45% 20% Net $ Adjustment $7.50 $0.00 $11.36 $8.95 Net % Adjustment 15% 0% 45% 20% Final Adjusted Price $42.51 $45.89 $36.62 $35.78 Overall Adjustment 15% 0% 45% 0% Range of Adjusted Prices $35.78 $45.89 Average $40.20 Indicated Value $45.00

44 Sales Comparison Approach 38 Value Indication Prior to adjustment, the sales reflect a range of $25.25 to $50.02 per square foot. After adjustment, the range is narrowed to $35.78 $45.89 per square foot, with an average of $40.20 per square foot. We give greatest weight to sales 1 and 2 and arrive at a value indication as follows: Value Indication by Sales Comparison Indicated Value per SF $45.00 Subject Square Feet 58,920 Indicated Value $2,651,400 Rounded $2,650,000

45 Income Capitalization Approach 39 Income Capitalization Approach The income capitalization approach converts anticipated economic benefits of owning real property into a value estimate through capitalization. The steps taken to apply the income capitalization approach are: Analyze the revenue potential of the property. Consider appropriate allowances for vacancy, collection loss, and operating expenses. Calculate net operating income by deducting vacancy, collection loss, and operating expenses from potential income. Apply the most appropriate capitalization method, either direct capitalization or discounted cash flow analysis, or both, to convert anticipated net income to an indication of value. The two most common capitalization methods are direct capitalization and discounted cash flow analysis. In direct capitalization, a single year s expected income is divided by an appropriate capitalization rate to arrive at a value indication. In discounted cash flow analysis, anticipated future net income streams and a future resale value are discounted to a present value at an appropriate yield rate. In this analysis, we use only direct capitalization because investors in this property type typically rely most on this method. Leased Status of Property A rent roll for the property is shown below, based on our review of leases and the owner s rent roll. Rent Roll Suite Tenant SF Lease Start Term Lease End (Mos.) Lease Type Income Type Contract Rent Contract Rent/SF Mid South Telecom 5,472 4/1/2014 3/31/ Modified Gross Rent/SF/Year $34,200 $ Ms. LaMonica Hodges and Mr. Marcus Hawkins, d.b.a. Nursing Assistance School 5,000 6/1/2014 5/31/ Modified Gross Rent/SF/Year $18,000 $ A Lincare INC. d.b.a. ACRO Pharmacy Services 2,500 8/1/2014 7/31/ Modified Gross Rent/SF/Year $18,000 $ B Mr. Jimmy Sommerfield d.b.a. Friends and Family Auctions 4,700 1/26/ /25/ Triple Net Rent/SF/Year $30,000 $ Lincare Pharmacy Services, Inc d.b.a. Reliant Pharmacy Services 12,000 6/1/2014 5/31/ Triple Net Rent/SF/Year $78,000 $ Mr. Melvin Clark d.b.a Shootinstarz Printing Photo /23/ /22/ Triple Net Rent/SF/Year $6,600 $ Dr. Johp and Assistoa Ba d.b.a. Tutu's Hair Braiding /1/ /31/ Triple Net Rent/SF/Year $9,540 $ Barbara Burkley d.b.a. Headliners 500 8/1/2013 7/31/ Triple Net Rent/SF/Year $5,400 $ B George Rideout d.b.a. Encore Metal Building Supply /15/ /15/ Triple Net Rent/SF/Year $3,600 $ Melanie Johnson d.b.a. Hair Cottage 408 6/1/2013 5/31/ Triple Net Rent/SF/Year $4,800 $ Adrianna Chillis d.b.a. Hair Rx 560 3/1/2013 3/1/ Triple Net Rent/SF/Year $4,532 $ Resting Place Christian Center 800 8/15/2013 8/14/ Triple Net Rent/SF/Year $9,000 $ George May DDS /1/2013 9/30/ Triple Net Rent/SF/Year $11,460 $ Mr. Buster Banks d.b.a. Greater Faith Christian Church 900 9/1/2014 8/31/ Modified Gross Rent/SF/Year $9,540 $ Tracy Crawley d.b.a. The Barber Institute 6,400 9/11/2012 9/10/ Triple Net Rent/SF/Year $27,000 $ Sav A Life DeSoto County Inc 1,300 6/1/2013 5/31/ Modified Gross Rent/SF/Year $10,800 $ Save A Life of Desoto County d.b.a Care Center 2,922 4/22/2011 5/31/ Modified Gross Rent/SF/Year $19,176 $ Mrs. Shirley Looney d.b.a. Country Skillet 2,040 2/1/2012 1/31/ Triple Net Rent/SF/Year $16,500 $ Cherry and Angel Velez d.b.a. Cherry's Yummies 2,040 8/1/2013 7/31/ Triple Net Rent/SF/Year $12,000 $ A Main Street Laboratory Inc. 3,000 10/1/2012 9/30/ Triple Net Rent/SF/Year $18,000 $ B Alton D and Cynthia Sraton Moore d.b.a Kingdom Life Transport Inc. 1,520 2/26/2014 2/25/ Modified Gross Rent/SF/Year $14,400 $ James Still and Michael Smith d.b.a Premiere Unlimited 785 7/1/2014 6/30/ Triple Net Rent/SF/Year $11,400 $ Mr. Daron Maxwell & Mr. Milton Person d.b.a. Tax Technology 1,010 10/19/ /18/ Triple Net Rent/SF/Year $11,640 $ Mr. & Mrs. Patrick Harris and Pastor Cassandra Burse d.b.a. New Beginning Christian Center 1,000 9/1/2013 8/31/ Triple Net Rent/SF/Year $12,000 $ William and James Muhammad and Elizabeth Walls Webb d.b.a. Muhammad Study Group 1,200 9/1/2013 8/31/ Triple Net Rent/SF/Year $12,000 $10.00 Total/Average* 58,920 $407,588 $6.92 Vacant SF 0 0% Leased SF 58, % *Average contract rent is based on leased square feet. As of the effective valuation date, the subject is 100% leased and occupied. Thus, the property is considered to be at stabilized occupancy.

46 Income Capitalization Approach 40 The division of expense responsibilities between the owner and tenants is as follows: Subject Expense Structures Space Type Small Shop Large Shop Lease Type Triple Net Triple Net Owner Tenant Owner Tenant Real Estate Taxes X X Insurance X X Common Area Maintenance X X Structural Repairs and Maintenance X X General/Administrative X X Management X X Replacement Reserves X X Market Rent Analysis Contract rents typically establish income for leased space, while market rent is the basis for estimating income for current vacant space and future speculative re leasing of space due to expired leases. Also, it is important to compare current contract rent levels with market rent levels. To estimate market rent, we analyze comparable rentals most relevant to the subject in terms of location, building class, size, and transaction date. Small Shop Space Rental Analysis Comparable rentals considered most relevant to the subject s small shop space are summarized in the following table.

47 Income Capitalization Approach 41 Summary of Comparable Rentals Small Shop No. Property Information Description Tenant SF Lease Start Term (Mos.) Rent/SF Escalations Lease Type 1 Southaven Retail Strip Yr Blt Estilos (Salon) 750 Feb $10.40 None Modified Gross U.S. Highway 51 Stories: 1 Southaven GLA: 17,500 Desoto County Parking Ratio: 2.7 /1,000 MS Comments: 12 month lease of 750 square feet of Small shop space. 2 Southaven Retail Strip Yr Blt Beautiful Nails 750 Jul $10.00 None Modified Gross U.S. Highway 51 Stories: 1 Southaven GLA: 17,500 Desoto County Parking Ratio: 2.7 /1,000 MS Comments: 60 month lease of 750 square feet of Small shop space. 3 Southaven Retail Yr Blt Cell Phones & Accessory 2,000 May $7.20 None Modified Gross Millbranch Stories: 1 Road Southaven GLA: 20,200 Desoto County Parking Ratio: 3.8 /1,000 MS Comments: 2,000 square foot in line space leased at $1,200/mo, or $7.20/SF, on a modified gross basis. 4 Southaven Strip Retail Yr Blt Southaven Shoe Repair 1,100 May $7.64 None Modified Gross Millbranch Stories: 1 Southaven GLA: 22,400 Desoto County Parking Ratio: 3.6 /1,000 MS Comments: Renewal of 1,100 SF located at Millbranch East strip center located immediately north of Stateline Road (Main Street) in Southaven, MS. Five year lease at $700/month with the tenant responsible for utilities. 5 Strip Retail Yr Blt Salon & Cutz 1,200 Feb $6.00 None Triple Net 2136 Stateline Road Stories: 1 Southaven GLA: 15,600 Desoto County Parking Ratio: MS Comments: Small shop lease to 7 Salon & Cutz within a strip retail center in Southaven, MS. Triple net lease, 3 year term. Tenant excepted space in "as is" condition. 6 The Colonnade Yr Blt Mid South Bedding Direct 1,200 Dec $8.50 None Triple Net 346 Stateline Rd. Stories: 1 Southaven GLA: 12,754 Desoto County Parking Ratio: MS Comments: Three year lease of 1,200 square feet of retail space on a triple net basis, in a neighborhood retail center with good access and exposure. Lease did not include any TI's, free rent or renwal options. No escalations are present, however, taxes and insurance are capped at the 2011 rate.

48 Income Capitalization Approach 42 Comparable Rentals Map Small Shop

49 Income Capitalization Approach 43 Rent 1 Southaven Retail Strip Center Rent 2 Southaven Retail Strip Center Rent 3 Southaven Retail Millbranch Road Rent 4 Southaven Strip Retail Rent 5 Strip Retail Rent 6 The Colonnade

50 Income Capitalization Approach 44 Rental Analysis Factors The following elements of comparison are considered in our analysis of the comparable rentals. Rental Analysis Factors Expense Structure Conditions of Lease Market Conditions Location Access/Exposure Size Building Quality Age/Condition Economic Characteristics Division of expense responsibilities between landlord and tenants. Extraordinary motivations of either landlord or tenant to complete the transaction. Changes in the economic environment over time that affect the appreciation and depreciation of real estate. Market or submarket area influences on rent; surrounding land use influences. Convenience to transportation facilities; ease of site access; visibility from main thoroughfares; traffic counts. Difference in rental rates that is often attributable to variation in sizes of leased space. Construction quality, amenities, market appeal, functional utility. Effective age; physical condition. Variations in rental rate attributable to such factors as free rent or other concessions, pattern of rent changes over lease term, or tenant improvement allowances. Analysis of Comparable Rentals Small Shop The comparable rentals are compared to the subject and adjusted to account for material differences that affect market rental value. The following table summarizes our analysis of each comparable. Rental Analysis Summary Small Shop Overall No. Property Name; Tenant Leased SF Rent/SF Comparison to Subject Comments 1 Southaven Retail Strip Center 750 $8.19 Similar Estilos (Salon) 2 Southaven Retail Strip Center 750 $7.79 Similar Beautiful Nails 3 Southaven Retail Millbranch 2,000 $5.20 Similar Cell Phones & Accessory 4 Southaven Strip Retail 1,100 $5.64 Similar Southaven Shoe Repair 5 Strip Retail 1,200 $6.00 Similar 7 Salon & Cutz 6 The Colonnade 1,200 $8.50 Similar Mid South Bedding Direct A downward adjustment is applied to the comparable's lease structure. Similar location within the Southaven sub market. Similar access/exposure. Similar property condition. A downward adjustment is applied to the comparable's lease structure. Similar location within the Southaven sub market. Similar access/exposure. Similar property condition. A downward adjustment is applied to the comparable's lease structure. Similar location within the Southaven sub market. Similar access/exposure. Similar property condition. A downward adjustment is applied to the comparable's lease structure. Similar location within the Southaven sub market. Similar access/exposure. Similar property condition. Similar location within the Southaven sub market. Similar access/exposure. Similar property condition. Similar lease structure. Similar location within the Southaven sub market. Similar access/exposure. Similar property condition. Similar lease structure. After analysis, the comparables indicate that a rental rate of $8.00 per square foot is applicable to the subject s small shop space.

51 Income Capitalization Approach 45 Large Shop Space Rental Analysis Comparable rentals considered most relevant to the subject s large shop space are summarized in the following table. Summary of Comparable Rentals Large Shop No. Property Information Description Tenant SF Lease Start Term (Mos.) Rent/SF Escalations Lease Type 1 Southaven Commons Yr Blt You Fit 12,000 Mar $6.25 Fixed Steps Triple Net 975 E. Goodman Road Stories: 1 Southaven GLA: 116,850 Desoto County Parking Ratio: 6.3 /1,000 MS Comments: Subanchor space. One month of rent abatement. Rent increases to $9.50/SF on 2/16/2015 and $10.50 on $4/17/2019. There are two, 5 year renewal options available. Operating expenses are estimated at $3.12/SF 2 The Market at Southaven Yr Blt Ammar M. Ammar (Bargain 6,288 Nov $4.77 Fixed Steps Triple Net 151 Stateline Road W. Stories: 1 Southaven GLA: 60,493 Desoto County Parking Ratio: MS Comments: Two months rent abatement. Rent increases $1.00/SF on 5/1/2015 and 11/1/2016. Operating expenses are estimated at $3.50/SF. 3 The Village Shops Yr Blt Sears Hometown Store 5,480 Oct $6.82 Fixed Steps Triple Net 7501 Goodman Rd. Stories: 1 Olive Branch GLA: 30,269 Desoto County Parking Ratio: MS Comments: Tenant also pays pro rata share of property taxes, insurance and common area maintenance. In addition to base rent tenant also pays a percentage rent of total gross sales over $1,500,000 for years 1 3, (2.5%) and in years 4 7 total gross sales over $1,500,000 by 5%. Tenant base rent is as follow: Months 1 12 $3, per month; $37,384 per year or $6.82 per square foot; Months $3, per month; $38,545 per year or $7.03 per square foot; Months $3, per month; $39,695 per year; or $7.24 per square foot, Months $3, per month; $40,874 per year or $7.46 per square foot; Months $3, per month; $42,082 per year; or $7.68 per square foot, Months $3, per month; $44,238 per year or $8.07 per square foot; Months $3, per month; $45,783 per year; or $8.35 per square foot, 4 The Market at Southaven Yr Blt Family Dollar Stores of MS, 8,256 Jan $4.24 None Triple Net 151 Stateline Road W. Stories: 1 Southaven GLA: 60,493 Desoto County Parking Ratio: MS Comments: Renewal. Tenant since Lease includes a percentage rent clause equal ot 3% of the gross sales in excess of $1,166,667 during each lease year period. Operating expenses are estimated at $3.50/SF.

52 Income Capitalization Approach 46 Comparable Rentals Map Large Shop

53 Income Capitalization Approach 47 Rent 1 Southaven Commons Shopping Center Rent 2 The Market at Southaven Rent 3 The Village Shops Rent 4 The Market at Southaven

54 Income Capitalization Approach 48 Analysis of Comparable Rentals Large Shop Our analysis of the comparable rentals is summarized in the following table. Rental Analysis Summary Large Shop No. Property Name/Tenant Leased SF Rent/SF Overall Comparison to Subject Comments 1 Southaven Commons Shopping 12,000 $6.25 Superior Superior location on Goodman Road in the Southaven sub market. Superior access/exposure. You Fit 2 The Market at Southaven 6,288 $4.77 Similar Similar location within the Southaven sub market. Similar access/exposure. Ammar M. Ammar (Bargain Depot) 3 The Village Shops 5,480 $6.82 Superior Superior location on Goodman Road in the Olive Branch sub market. Superior Sears Hometown Store access/exposure. 4 The Market at Southaven 8,256 $4.24 Similar Similar location within the Southaven sub market. Similar access/exposure. Family Dollar Stores of MS, Inc. After analysis, the comparables indicate that a rental rate of $4.50 per square foot is applicable to the subject s large shop space.

55 Income Capitalization Approach 49 Recent Subject Leases Recent subject leasing activity is summarized in the following table. Recent Subject Leases Suite Tenant SF Type Lease Start Term (Mos.) Initial Rent/SF Rent Escal. Effective Rent/SF TI/SF 1271 Mr. Buster Banks d.b.a. Greater Faith Christian Church 900 Renew 09/01/14 36 $10.60 No $10.60 $ A Lincare INC. d.b.a. ACRO Pharmacy Services 2,500 New 08/01/14 12 $7.20 No $7.20 $ James Still and Michael Smith d.b.a Premiere Unlimited 785 New 07/01/14 36 $14.52 No $14.52 $ Ms. LaMonica Hodges and Mr. Marcus Hawkins, d.b.a. Nursing Assistance School 5,000 New 06/01/14 36 $3.60 Yes $3.60 $ Lincare Pharmacy Services, Inc d.b.a. Reliant Pharmacy Services 12,000 Renew 06/01/14 36 $6.50 No $6.50 $ Mid South Telecom 5,472 New 04/01/14 36 $6.25 Yes $6.25 $ B Alton D and Cynthia Sraton Moore d.b.a Kingdom Life Transport Inc. 1,520 New 02/26/14 36 $9.47 Yes $9.47 $ Dr. Johp and Assistoa Ba d.b.a. Tutu's Hair Braiding 900 New 11/01/13 36 $10.60 No $10.60 $ Mr. Melvin Clark d.b.a Shootinstarz Printing Photo 588 New 10/23/13 36 $11.22 No $11.22 $ B George Rideout d.b.a. Encore Metal Building Supply 450 New 10/15/13 36 $8.00 No $8.00 $0.00 Market Rent Conclusion Based on the preceding analysis of comparable rentals and recent leases at the subject, we conclude market lease terms for the subject as follows. Concluded Market Lease Terms Market Rent/ SF/Yr Lease Term (Mos.) Rent Space Type SF Escalations Lease Type Small Shop 25,348 $8.00 Yes Triple Net 36 Large Shop 33,572 $4.50 Yes Triple Net 60

56 Income Capitalization Approach 50 Stabilized Income and Expenses Potential Gross Rent Potential gross rent is based on contract rents from leases in place plus market rents for vacant space, as shown in the following table. Income is projected for the 12 month period following the effective date of the appraisal. Potential Gross Rent Contract Potential Rent at Contract (1) Potential Rent at Market as % of Space Type SF Annual Rent/SF Rent/SF Annual Market Small Shop 25,348 $220,388 $8.69 $8.00 $202, % Large Shop 33,572 $187,200 $5.58 $4.50 $151, % Total 58,920 $407,588 $6.92 $6.01 $353, % 1 Contract rent for leased space; vacant space at market. Expense Reimbursements Reimbursement income is based on the terms of existing leases that generally require tenants to reimburse the owner for all operating expenses, except general and administrative expenses, structural repairs and maintenance, management fees and replacement reserves. We note that the subject s existing leases with the tenants Mid South Telecom, ACRO Pharmacy Services, Friends and Family Auctions, Greater Faith Christian Church, Sav A Life DeSoto County, Care Center, and Kingdom Life Transport Inc are on a modified gross basis and requires the owner to pay real estate taxes, insurance and common area maintenance. These tenants represent at total of 19,614 square feet, or 33.29% of the buildings total gross leasable area. In projecting of estimate of expense reimbursement due to the property owner, we have taken the sum of the estimated real estate tax expense, insurance expense, and common area maintenance expense and multiplied it by 66.71%, or 39,306 square feet of gross leasable area for the tenants on a triple net lease structure. For the purposes of estimating market rent, we assume that future leases are made on a triple net basis, which is consistent with the market. Vacancy & Collection Loss The vacancy and collection loss estimate considers the submarket vacancy rate, vacancy rates at competing properties and the credit risk of the subject s tenants. In addition, the subject s economic occupancy is included to account for the owner not receiving the amount due from reimbursable expenses. Therefore, stabilized vacancy and collection loss is estimated at 8.0%. Expenses Operating expenses are estimated based on the operating history of the subject, expense data from comparable properties, and industry benchmarks, as summarized in the following tables.

57 Income Capitalization Approach 51 Operating History and Projections Actual Actual Actual IRR Projection Income Base Rent $376,435 $349,517 $434,211 $407,588 Expense Reimbursements 18,889 19,825 20,000 78,000 Potential Gross Income* $395,324 $369,342 $454,211 $485,588 Vacancy & Collection 8.0% $38,847 Effective Gross Income $395,324 $369,342 $454,211 $446,741 Expenses Real Estate Taxes $35,000 $35,000 $33,186 $33,168 Insurance 10,577 22,128 12,399 11,784 Common Area Maintenance 59,493 74,746 73,471 73,650 Structural Repairs and Maintenance ,784 General/Administrative 18, ,500 Management ,500 Replacement Reserves ,680 11,784 Total Expenses $124,041 $132,416 $132,736 $147,170 Net Operating Income $271,283 $236,926 $321,475 $299,571 Operating Expense Ratio 31.4% 35.9% 29.2% 32.9% Income per Square Foot Base Rent $6.39 $5.93 $7.37 $6.92 Expense Reimbursements Potential Gross Income per Square Foo $6.71 $6.27 $7.71 $8.24 Vacancy & Collection 8.0% $0.66 Effective Gross Income per Square Foot $6.71 $6.27 $7.71 $7.58 Expenses per Square Foot Real Estate Taxes $0.59 $0.59 $0.56 $0.56 Insurance Common Area Maintenance Structural Repairs and Maintenance General/Administrative Management Replacement Reserves Total Expenses per Square Foot $2.11 $2.25 $2.25 $2.50 NOI per Square Foot $4.60 $4.02 $5.46 $5.08 Gross Leasable Area (SF): 58,920 58,920 58,920 58,920 *IRR projected income is the total potential income attributable to the property before deduction of vacancy and collection loss. Historical income is the actual income that has been collected by the property owner.

58 Income Capitalization Approach 52 Expense Analysis per Square Foot Year Built SF Prevailing Lease Type Subject Historical and Projected Expenses ,920 Triple Net Operating Data Type Actual Actual Actual IRR Year Projection Real Estate Taxes $0.59 $0.59 $0.56 $0.56 Insurance $0.18 $0.38 $0.21 $0.20 Common Area Maintenance $1.01 $1.27 $1.25 $1.25 Structural Repairs and Maintenance $0.00 $0.00 $0.00 $0.20 General/Administrative $0.32 $0.01 $0.00 $0.04 Management $0.00 $0.00 $0.00 $0.04 Replacement Reserves $0.00 $0.00 $0.23 $0.20 Total $2.11 $2.25 $2.25 $2.50 Capitalization Rate Selection A capitalization rate is used to convert net income into an indication of value. Selection of an appropriate capitalization rate considers the future income pattern of the property and investment risk associated with ownership. We consider the following data in selecting a capitalization rate for the subject. Capitalization Rate Comparables No. Property Name Year Built Sale Date Gross Leasable Area % Occup. Price /SF Cap Rate 1 Retail Strip Center /7/ ,255 95% $ % 2 Quitman Retail Center /15/ ,700 90% $ % 3 Southgate Shopping Center /30/ ,500 72% $ % 4 Shelby Crossing Shopping /26/ ,140 $ % Average (Mean) Cap Rate: 13.82% The capitalization rates for the comparables range from 10.80% to 19.98%., with an average of 13.82%.

59 Income Capitalization Approach 53 National Investor Surveys Data pertaining to investment grade properties from the PwC, ACLI, and Viewpoint surveys are summarized in the exhibits that follow. Capitalization Rate Surveys Retail Properties IRR Viewpoint YE 2013 National Neighborhood Retail IRR Viewpoint YE 2013 National Community Retail Center PwC 1Q 2014 National Strip Shopping Center PwC 1Q 2014 National Power Center ACLI 4Q 2013 National Retail Range 5.5% 9.5% 5.25% 8.60% 5.00% 10.00% 5.50% 8.00% NA Average 7.41% 7.26% 6.97% 6.67% 6.54% Source: IRR Viewpoint 2014; PwC Real Estate Investor Survey; American Council of Life Insurers Investment Bulletin. Retail Capitalization Rate Trends Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 STRIP PWR ACLI STRIP PwC Real Estate Investor Survey National Strip Shopping Center Market PWR PwC Real Estate Investor Survey National Power Center Market ACLI American Council of Life Insurers Investment Bulletin Retail Properties The most current national survey data indicates that a going in capitalization rate for Retail properties ranges from 5.00% to 10.00% and averages 6.97%. Pricewaterhouse Coopers (PwC) Real Estate Investor Survey, 2 nd Quarter 2013, provides a comparison for institutional grade versus non institutional grade property rates. Non institutional grade properties would generally be described as lower Class B and Class C properties in secondary markets and generally exhibit various forms of functional or external obsolescence.

60 Income Capitalization Approach 54 Institutional Vs. Non Institutional Rates National Strip Shopping Institutional Center Rates Internal Rate of Return 6.50% 11.50% 8.19% Non Institutional Basis Point Spread points 244 Overall Capitalization Rate 5.50% 9.50% 6.95% points 200 Source: Pricewaterhouse Coopers (PwC) Real Estate Investor Survey, Second Quarter 2013 The average spread from non institutional grade to institutional grade properties for the average internal rate of return is 244 basis points for strip shopping centers. The spread for overall capitalization rates for strip shopping centers is 200 basis points. These spreads reflect recognition for the higher risk associated with the non institutional grade properties, like the subject. We would expect the rate appropriate to the subject to be above the average rate in the survey data because of the quality of the income stream. Accordingly, based on the survey data and the subject s secondary trade area location, a capitalization rate greater than 9.00% could be expected for the subject. Band of Investment The band of investment method derives a capitalization rate from the weighted average of the mortgage and equity demands on net income generated from the property. This method involves an estimate of typical financing terms as well as an estimated rate of return on equity capital sufficient to attract investors. The rate indicated by this method is shown in the following table. Band of Investment Method Mortgage/Equity Assumptions Loan To Value Ratio 75% Interest Rate 5.00% Amortization (Years) 20 Mortgage Constant Equity Ratio 25% Equity Dividend Rate 16.00% Weighted Average of Mortgage and Equity Requirements Mortgage Requirement 75% x 7.92% = 5.94% Equity Requirement 25% x 16.00% = 4.00% Indicated Capitalization Rate 9.94% Rounded 9.90% Based on the preceding analysis, a going in capitalization rate greater than 9.0% for the subject can be expected.

61 Income Capitalization Approach 55 To conclude a capitalization rate, we consider each of the following investment risk factors to determine its impact on the capitalization rate. The direction of each arrow in the following table indicates our judgment of an upward, downward, or neutral impact of each factor. Risk Factor Issues Impact on Rate Income Characteristics Competitive Market Position Location Market Highest & Best Use Overall Impact Rollover risk, escalation pattern, above/below market rents, major tenant credit strength. Construction quality, appeal, condition, effective age, functional utility. Market area demographics and life cycle trends; proximity issues; access and support services. Vacancy rates and trends; rental rate trends; supply and demand. Upside potential from redevelopment, adaptation, expansion. Accordingly, we conclude a capitalization rate as follows: Capitalization Rate Conclusion Going In Capitalization Rate 10.00%

62 Income Capitalization Approach 56 Direct Capitalization Analysis Net operating income is divided by the capitalization rate to indicate the stabilized value of the subject. Valuation of the subject by direct capitalization is shown in the following table. Direct Capitalization Analysis SF Space Type Rent Applied $/SF Annual $/SF Bldg. Income Base Rent Mid South Telecom 5,472 Large Shop Contract $6.25 $34,200 Ms. LaMonica Hodges and Mr. Marcus Hawkins, d.b.a. Nursing Assistance School 5,000 Large Shop Contract $3.60 $18,000 Lincare INC. d.b.a. ACRO Pharmacy Services 2,500 Small Shop Contract $7.20 $18,000 Mr. Jimmy Sommerfield d.b.a. Friends and Family Auctions 4,700 Large Shop Contract $6.38 $30,000 Lincare Pharmacy Services, Inc d.b.a. Reliant Pharmacy Services 12,000 Large Shop Contract $6.50 $78,000 Mr. Melvin Clark d.b.a Shootinstarz Printing Photo 588 Small Shop Contract $11.22 $6,600 Dr. Johp and Assistoa Ba d.b.a. Tutu's Hair Braiding 900 Small Shop Contract $10.60 $9,540 Barbara Burkley d.b.a. Headliners 500 Small Shop Contract $10.80 $5,400 George Rideout d.b.a. Encore Metal Building Supply 450 Small Shop Contract $8.00 $3,600 Melanie Johnson d.b.a. Hair Cottage 408 Small Shop Contract $11.76 $4,800 Adrianna Chillis d.b.a. Hair Rx 560 Small Shop Contract $8.09 $4,532 Resting Place Christian Center 800 Small Shop Contract $11.25 $9,000 George May DDS 925 Small Shop Contract $12.39 $11,460 Mr. Buster Banks d.b.a. Greater Faith Christian Church 900 Small Shop Contract $10.60 $9,540 Tracy Crawley d.b.a. The Barber Institute 6,400 Large Shop Contract $4.22 $27,000 Sav A Life DeSoto County Inc 1,300 Small Shop Contract $8.31 $10,800 Save A Life of Desoto County d.b.a Care Center 2,922 Small Shop Contract $6.56 $19,176 Mrs. Shirley Looney d.b.a. Country Skillet 2,040 Small Shop Contract $8.09 $16,500 Cherry and Angel Velez d.b.a. Cherry's Yummies 2,040 Small Shop Contract $5.88 $12,000 Main Street Laboratory Inc. 3,000 Small Shop Contract $6.00 $18,000 Alton D and Cynthia Sraton Moore d.b.a Kingdom Life Transport Inc. 1,520 Small Shop Contract $9.47 $14,400 James Still and Michael Smith d.b.a Premiere Unlimited 785 Small Shop Contract $14.52 $11,400 Mr. Daron Maxwell & Mr. Milton Person d.b.a. Tax Technology 1,010 Small Shop Contract $11.52 $11,640 Mr. & Mrs. Patrick Harris and Pastor Cassandra Burse d.b.a. New Beginning Christian Center 1,000 Small Shop Contract $12.00 $12,000 William and James Muhammad and Elizabeth Walls Webb d.b.a. Muhammad Study Group 1,200 Small Shop Contract $10.00 $12,000 Potential Gross Rent 58,920 $407,588 $6.92 Expense Reimbursements $78,000 $1.32 Potential Gross Income $485,588 $8.24 Vacancy & Collection Loss 8.00% $38,847 $0.66 Effective Gross Income $446,741 $7.58 Expenses Real Estate Taxes $33,168 $0.56 Insurance $11,784 $0.20 Common Area Maintenance $73,650 $1.25 Structural Repairs and Maintenance $11,784 $0.20 General/Administrative $2,500 $0.04 Management 0.56% $2,500 $0.04 Replacement Reserves $11,784 $0.20 Total Expenses $147,170 $2.50 Net Operating Income $299,571 $5.08 Capitalization Rate 10.00% Indicated Value $2,995,709 $50.84 Rounded $3,000,000 $50.92

63 Reconciliation and Conclusion of Value 57 Reconciliation and Conclusion of Value The values indicated by our analyses are as follows: Summary of Value Indications Cost Approach Not Used Sales Comparison Approach $2,650,000 Income Capitalization Approach $3,000,000 Reconciled $3,000,000 The income capitalization approach is given the greatest weight because it is the most reliable valuation method for the subject. The sales comparison approach is given less weight. The cost approach is not applicable to the subject and is not used. Accordingly, our value opinion follows. Value Conclusion Appraisal Premise Interest Appraised Date of Value Value Conclusion Market Value Leased Fee August 18, 2014 $3,000,000 Extraordinary Assumptions and Hypothetical Conditions The value conclusions are subject to the following extraordinary assumptions that may affect the assignment results. An extraordinary assumption is uncertain information accepted as fact. If the assumption is found to be false as of the effective date of the appraisal, we reserve the right to modify our value conclusions. 1. For the purpose of this appraisal, we have assumed that the leases are correct and we have relied on the leases in estimating the gross leasable area are the subject property. The value conclusions are based on the following hypothetical conditions that may affect the assignment results. A hypothetical condition is a condition contrary to known fact on the effective date of the appraisal but is supposed for the purpose of analysis. 1. None The opinions of value expressed in this report are based on estimates and forecasts that are prospective in nature and subject to considerable risk and uncertainty. Events may occur that could cause the performance of the property to differ materially from our estimates, such as changes in the economy, interest rates, capitalization rates, financial strength of tenants, and behavior of investors, lenders, and consumers. Additionally, our opinions and forecasts are based partly on data obtained from interviews and third party sources, which are not always completely reliable. Although we are of the opinion that our findings are reasonable based on available evidence, we are not responsible for the effects of future occurrences that cannot be reasonably foreseen at this time.

64 Reconciliation and Conclusion of Value 58 Exposure and Marketing Times Our estimates of exposure and marketing times are as follows: Exposure Time and Marketing Period Exposure Time (Months) 6 to 9 Marketing Period (Months) 6 to 9

65 Certification 59 Certification We certify that, to the best of our 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 our personal, impartial, and unbiased professional analyses, opinions, and conclusions. 3. 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. 4. We have not performed any services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three year period immediately preceding acceptance of this assignment. 5. We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 6. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. 7. Our 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. 8. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice as well as applicable state appraisal regulations. 9. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. 10. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 11. J. Walter Allen, MAI, FRICS, made a personal inspection of the property that is the subject of this report. 12. Significant real property appraisal assistance was provided by Quinton C. Robinson who has not signed this certification. 13. We have experience in appraising properties similar to the subject and are in compliance with the Competency Rule of USPAP. 14. As of the date of this report, J. Walter Allen, MAI, FRICS, has completed the continuing education program for Designated Members of the Appraisal Institute.

66 Certification Based on the preceding valuation analysis, and subject to the definitions, assumptions, and limiting conditions expressed in this report, our value opinion follows: Value Conclusion Appraisal Premise Interest Appraised Date of Value Value Conclusion Market Value Leased Fee August 18, 2014 $3,000,000 J. Walter Allen, MAI, FRICS Certified General Real Estate Appraiser Mississippi Certificate # GA 648 N.R.

67 Assumptions and Limiting Conditions 61 Assumptions and Limiting Conditions This appraisal and any other work product related to this engagement are limited by the following standard assumptions, except as otherwise noted in the report: 1. The title is marketable and free and clear of all liens, encumbrances, encroachments, easements and restrictions. The property is under responsible ownership and competent management and is available for its highest and best use. 2. There are no existing judgments or pending or threatened litigation that could affect the value of the property. 3. There are no hidden or undisclosed conditions of the land or of the improvements that would render the property more or less valuable. Furthermore, there is no asbestos in the property. 4. The revenue stamps placed on any deed referenced herein to indicate the sale price are in correct relation to the actual dollar amount of the transaction. 5. The property is in compliance with all applicable building, environmental, zoning, and other federal, state and local laws, regulations and codes. 6. The information furnished by others is believed to be reliable, but no warranty is given for its accuracy. This appraisal and any other work product related to this engagement are subject to the following limiting conditions, except as otherwise noted in the report: 1. An appraisal is inherently subjective and represents our opinion as to the value of the property appraised. 2. The conclusions stated in our appraisal apply only as of the effective date of the appraisal, and no representation is made as to the effect of subsequent events. 3. No changes in any federal, state or local laws, regulations or codes (including, without limitation, the Internal Revenue Code) are anticipated. 4. No environmental impact studies were either requested or made in conjunction with this appraisal, and we reserve the right to revise or rescind any of the value opinions based upon any subsequent environmental impact studies. If any environmental impact statement is required by law, the appraisal assumes that such statement will be favorable and will be approved by the appropriate regulatory bodies. 5. Unless otherwise agreed to in writing, we are not required to give testimony, respond to any subpoena or attend any court, governmental or other hearing with reference to the property without compensation relative to such additional employment. 6. We have made no survey of the property and assume no responsibility in connection with such matters. Any sketch or survey of the property included in this report is for illustrative purposes only and should not be considered to be scaled accurately for size. The appraisal

68 Assumptions and Limiting Conditions 62 covers the property as described in this report, and the areas and dimensions set forth are assumed to be correct. 7. No opinion is expressed as to the value of subsurface oil, gas or mineral rights, if any, and we have assumed that the property is not subject to surface entry for the exploration or removal of such materials, unless otherwise noted in our appraisal. 8. We accept no responsibility for considerations requiring expertise in other fields. Such considerations include, but are not limited to, legal descriptions and other legal matters such as legal title, geologic considerations such as soils and seismic stability; and civil, mechanical, electrical, structural and other engineering and environmental matters. Such considerations may also include determinations of compliance with zoning and other federal, state, and local laws, regulations and codes. 9. The distribution of the total valuation in the report between land and improvements applies only under the reported highest and best use of the property. The allocations of value for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used. The appraisal report shall be considered only in its entirety. No part of the appraisal report shall be utilized separately or out of context. 10. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraisers, or any reference to the Appraisal Institute) shall be disseminated through advertising media, public relations media, news media or any other means of communication (including without limitation prospectuses, private offering memoranda and other offering material provided to prospective investors) without the prior written consent of the persons signing the report. 11. Information, estimates and opinions contained in the report and obtained from third party sources are assumed to be reliable and have not been independently verified. 12. Any income and expense estimates contained in the appraisal report are used only for the purpose of estimating value and do not constitute predictions of future operating results. 13. If the property is subject to one or more leases, any estimate of residual value contained in the appraisal may be particularly affected by significant changes in the condition of the economy, of the real estate industry, or of the appraised property at the time these leases expire or otherwise terminate. 14. Unless otherwise stated in the report, no consideration has been given to personal property located on the premises or to the cost of moving or relocating such personal property; only the real property has been considered. 15. The current purchasing power of the dollar is the basis for the values stated in the appraisal; we have assumed that no extreme fluctuations in economic cycles will occur. 16. The values found herein is subject to these and to any other assumptions or conditions set forth in the body of this report but which may have been omitted from this list of Assumptions and Limiting Conditions. 17. The analyses contained in the report necessarily incorporate numerous estimates and assumptions regarding property performance, general and local business and economic

69 Assumptions and Limiting Conditions 63 conditions, the absence of material changes in the competitive environment and other matters. Some estimates or assumptions, however, inevitably will not materialize, and unanticipated events and circumstances may occur; therefore, actual results achieved during the period covered by our analysis will vary from our estimates, and the variations may be material. 18. The Americans with Disabilities Act (ADA) became effective January 26, We have not made a specific survey or analysis of the property to determine whether the physical aspects of the improvements meet the ADA accessibility guidelines. We claim no expertise in ADA issues, and render no opinion regarding compliance of the subject with ADA regulations. Inasmuch as compliance matches each owner s financial ability with the cost to cure the nonconforming physical characteristics of a property, a 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. 19. The appraisal report is prepared for the exclusive benefit of the Client, its subsidiaries and/or affiliates. It may not be used or relied upon by any other party. All parties who use or rely upon any information in the report without our written consent do so at their own risk. 20. No studies have been provided to us indicating the presence or absence of hazardous materials on the subject property or in the improvements, and our valuation is predicated upon the assumption that the subject property is free and clear of any environment hazards including, without limitation, hazardous wastes, toxic substances and mold. No representations or warranties are made regarding the environmental condition of the subject property. Integra Realty Resources Memphis, Integra Realty Resources, Inc., Integra Strategic Ventures, Inc. and/or any of their respective officers, owners, managers, directors, agents, subcontractors or employees (the Integra Parties ), shall not be responsible for any such environmental conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because we are not experts in the field of environmental conditions, the appraisal report cannot be considered as an environmental assessment of the subject property. 21. The persons signing the report may have reviewed available flood maps and may have noted in the appraisal report whether the subject property is located in an identified Special Flood Hazard Area. We are not qualified to detect such areas and therefore do not guarantee such determinations. The presence of flood plain areas and/or wetlands may affect the value of the property, and the value conclusion is predicated on the assumption that wetlands are nonexistent or minimal. 22. Integra Realty Resources Memphis is not a building or environmental inspector. Integra Memphis does not guarantee that the subject property is free of defects or environmental problems. Mold may be present in the subject property and a professional inspection is recommended. 23. The appraisal report and value conclusions for an appraisal assume the satisfactory completion of construction, repairs or alterations in a workmanlike manner. 24. It is expressly acknowledged that in any action which may be brought against any of the Integra Parties, arising out of, relating to, or in any way pertaining to this engagement, the

70 Assumptions and Limiting Conditions 64 appraisal reports, and/or any other related work product, the Integra Parties shall not be responsible or liable for any incidental or consequential damages or losses, unless the appraisal was fraudulent or prepared with intentional misconduct. It is further acknowledged that the collective liability of the Integra Parties in any such action shall not exceed the fees paid for the preparation of the appraisal report unless the appraisal was fraudulent or prepared with intentional misconduct. Finally, it is acknowledged that the fees charged herein are in reliance upon the foregoing limitations of liability. 25. Integra Realty Resources Memphis, an independently owned and operated company, has prepared the appraisal for the specific intended use stated elsewhere in the report. The use of the appraisal report by anyone other than the Client is prohibited except as otherwise provided. Accordingly, the appraisal report is addressed to and shall be solely for the Client s use and benefit unless we provide our prior written consent. We expressly reserve the unrestricted right to withhold our consent to your disclosure of the appraisal report or any other work product related to the engagement (or any part thereof including, without limitation, conclusions of value and our identity), to any third parties. Stated again for clarification, unless our prior written consent is obtained, no third party may rely on the appraisal report (even if their reliance was foreseeable). 26. The conclusions of this report are estimates based on known current trends and reasonably foreseeable future occurrences. These estimates are based partly on property information, data obtained in public records, interviews, existing trends, buyer seller decision criteria in the current market, and research conducted by third parties, and such data are not always completely reliable. The Integra Parties are not responsible for these and other future occurrences that could not have reasonably been foreseen on the effective date of this assignment. Furthermore, it is inevitable that some assumptions will not materialize and that unanticipated events may occur that will likely affect actual performance. While we are of the opinion that our findings are reasonable based on current market conditions, we do not represent that these estimates will actually be achieved, as they are subject to considerable risk and uncertainty. Moreover, we assume competent and effective management and marketing for the duration of the projected holding period of this property. 27. All prospective value opinions presented in this report are estimates and forecasts which are prospective in nature and are subject to considerable risk and uncertainty. In addition to the contingencies noted in the preceding paragraph, several events may occur that could substantially alter the outcome of our estimates such as, but not limited to changes in the economy, interest rates, and capitalization rates, behavior of consumers, investors and lenders, fire and other physical destruction, changes in title or conveyances of easements and deed restrictions, etc. It is assumed that conditions reasonably foreseeable at the present time are consistent or similar with the future.

71 Assumptions and Limiting Conditions The appraisal is also subject to the following: Extraordinary Assumptions and Hypothetical Conditions The value conclusions are subject to the following extraordinary assumptions that may affect the assignment results. An extraordinary assumption is uncertain information accepted as fact. If the assumption is found to be false as of the effective date of the appraisal, we reserve the right to modify our value conclusions. 1. For the purpose of this appraisal, we have assumed that the leases are correct and we have relied on the leases in estimating the gross leasable area are the subject property. The value conclusions are based on the following hypothetical conditions that may affect the assignment results. A hypothetical condition is a condition contrary to known fact on the effective date of the appraisal but is supposed for the purpose of analysis. 1. None

72 Addenda Addendum A Appraiser Qualifications

73 Integra Realty Resources J. Walter Allen, MAI, FRICS Memphis Experience Senior Managing Director for INTEGRA REALTY RESOURCES - MEMPHIS. Actively engaged in real estate valuation and consulting since Extensive experience in the valuation of regional malls, community/neighborhood shopping centers, power centers, office buildings-cbd and suburban, warehouse/distribution, multi-family (including CBD condominium development), parking garages, hotels and motels, vacant land and special purpose properties. Clients served include life insurance companies and pension fund advisors, banks and financial institutions, conduits, developers and investors, law firms, business/industry and government, and mortgage bankers. Valuations have been performed for condemnation purposes, estate, financing, equity participation and due diligence support. Experience is concentrated in major urban properties including office buildings, industrial buildings, apartments, senior housing, shopping centers, health facilities, property tax appeals, equity participation, due diligence, condemnation, right-of-way acquisitions, and litigation support. 700 Colonial Road Suite 102 Memphis, TN T F irr.com Professional Activities & Affiliations Appraisal Institute, Member (MAI) Appraisal Institute, July 1987 Member/Other National Association of Realtors, January 1985 Member/Other Lambda Alpha Land Economics Fraternity, January 2000 Royal Institute of Chartered Surveyors, Member (MRICS) Member, December 2007 Board of Director: Memphis Area Association of Realtors, September 2009 Board of Director: Integra Realty Resources, September 2009 Member: Urban Land Institute Royal Institute of Chartered Surveyors, Fellow (FRICS) Member, June 2012 Licenses Tennessee, Appraiser, CG-329, Expires December 2015 Mississippi, Appraiser, GA-648, Expires September 2015 Arkansas, Appraiser, CG0471, Expires February 2014 Education B.A. Degree, University of Memphis, Successfully completed numerous real estate and valuation courses and seminars sponsored by the Appraisal Institute, accredited universities and others. Qualified Before Courts & Administrative Bodies Qualified as an expert witness in U.S. Federal Bankruptcy Court, West Tennessee and North Mississippi Districts; Court of Common Pleas in Shelby County, TN; Boards of Assessment Appeals in Shelby County, TN Miscellaneous Instructor; Real Estate Principles and Income Capitalization; University of Memphis Author, A National Review of Uniformity in Ad Valorem Tax Valuation of Billboard Property, International Association of Assessing Officers/International Property Tax Institute, November 2010 Presentor, Eminent Domain From Start to Finish, National Business Institute, November 2013 wallen@irr.com

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75 Integra Realty Resources, Inc. Corporate Profile Integra Realty Resources, Inc. offers the most comprehensive property valuation and counseling coverage in the United States with 62 independently owned and operated offices in 34 states and the Caribbean. Integra was created for the purpose of combining the intimate knowledge of well established local firms with the powerful resources and capabilities of a national company. Integra offers integrated technology, national data and information systems, as well as standardized valuation models and report formats for ease of client review and analysis. Integra s local offices have an average of 25 years of service in the local market, and all but one are headed by a Senior Managing Director who is an MAI member of the Appraisal Institute. A listing of IRR s local offices and their Senior Managing Directors follows: ATLANTA, GA Sherry L. Watkins., MAI, FRICS AUSTIN, TX Randy A. Williams, MAI, SR/WA, FRICS BALTIMORE, MD G. Edward Kerr, MAI, MRICS BIRMINGHAM, AL Rusty Rich, MAI, MRICS BOISE, ID Bradford T. Knipe, MAI, ARA, CCIM, CRE, FRICS BOSTON, MA David L. Cary, Jr., MAI, MRICS CHARLESTON, SC Cleveland Bud Wright, Jr., MAI CHARLOTTE, NC Fitzhugh L. Stout, MAI, CRE, FRICS CHICAGO, IL Eric L. Enloe, MAI, FRICS CINCINNATI, OH Gary S. Wright, MAI, FRICS, SRA CLEVELAND, OH Douglas P. Sloan, MAI COLUMBIA, SC Michael B. Dodds, MAI, CCIM COLUMBUS, OH Bruce A. Daubner, MAI, FRICS DALLAS, TX Mark R. Lamb, MAI, CPA, FRICS DAYTON, OH Gary S. Wright, MAI, FRICS, SRA DENVER, CO Brad A. Weiman, MAI, FRICS DETROIT, MI Anthony Sanna, MAI, CRE, FRICS FORT WORTH, TX Gregory B. Cook, SR/WA GREENSBORO, NC Nancy Tritt, MAI, SRA, FRICS GREENVILLE, SC Michael B. Dodds, MAI, CCIM HARTFORD, CT Mark F. Bates, MAI, CRE, FRICS HOUSTON, TX David R. Dominy, MAI, CRE, FRICS INDIANAPOLIS, IN Michael C. Lady, MAI, SRA, CCIM, FRICS JACKSON, MS J. Walter Allen, MAI, FRICS JACKSONVILLE, FL Robert Crenshaw, MAI, FRICS KANSAS CITY, MO/KS Kenneth Jaggers, MAI, FRICS LAS VEGAS, NV Charles E. Jack IV, MAI LOS ANGELES, CA John G. Ellis, MAI, CRE, FRICS LOS ANGELES, CA Matthew J. Swanson, MAI LOUISVILLE, KY Stacey Nicholas, MAI, MRICS MEMPHIS, TN J. Walter Allen, MAI, FRICS MIAMI/PALM BEACH, FL Scott M. Powell, MAI, FRICS MIAMI/PALM BEACH, FL Anthony M. Graziano, MAI, CRE, FRICS MINNEAPOLIS, MN Michael F. Amundson, MAI, CCIM, FRICS NAPLES, FL Carlton J. Lloyd, MAI, FRICS NASHVILLE, TN R. Paul Perutelli, MAI, SRA, FRICS NEW JERSEY COASTAL Halvor J. Egeland, MAI NEW JERSEY NORTHERN Barry J. Krauser, MAI, CRE, FRICS NEW YORK, NY Raymond T. Cirz, MAI, CRE, FRICS ORANGE COUNTY, CA Larry D. Webb, MAI, FRICS ORLANDO, FL Christopher Starkey, MAI, MRICS PHILADELPHIA, PA Joseph D. Pasquarella, MAI, CRE, FRICS PHOENIX, AZ Walter Tres Winius III, MAI, FRICS PITTSBURGH, PA Paul D. Griffith, MAI, CRE, FRICS PORTLAND, OR Brian A. Glanville, MAI, CRE, FRICS PROVIDENCE, RI Gerard H. McDonough, MAI, FRICS RALEIGH, NC Chris R. Morris, MAI, FRICS RICHMOND, VA Kenneth L. Brown, MAI, CCIM, FRICS SACRAMENTO, CA Scott Beebe, MAI, FRICS ST. LOUIS, MO P. Ryan McDonald, MAI, FRICS SALT LAKE CITY, UT Darrin W. Liddell, MAI, CCIM, FRICS SAN ANTONIO, TX Martyn C. Glen, MAI, CRE, FRICS SAN DIEGO, CA Jeff A. Greenwald, MAI, SRA, FRICS SAN FRANCISCO, CA Jan Kleczewski, MAI, FRICS SARASOTA, FL Carlton J. Lloyd, MAI, FRICS SAVANNAH, GA J. Carl Schultz, Jr., MAI, FRICS, CRE, SRA SEATTLE, WA Allen N. Safer, MAI, MRICS SYRACUSE, NY William J. Kimball, MAI, FRICS TAMPA, FL Bradford L. Johnson, MAI, MRICS TULSA, OK Robert E. Gray, MAI, FRICS WASHINGTON, DC Patrick C. Kerr, MAI, SRA, FRICS WILMINGTON, DE Douglas L. Nickel, MAI, FRICS CARIBBEAN/CAYMAN ISLANDS James Andrews, MAI, FRICS Corporate Office 1133 Avenue of the Americas, 27th Floor, New York, New York Telephone: (212) ; Fax: (646) ; E mail info@irr.com Website:

76 Addenda Addendum B Comparison of Report Formats

77 Addenda Comparison of Report Formats Reporting Options in Edition of USPAP Integra Reporting Formats Effective January 1, 2014 Corresponding Reporting Options in Edition of USPAP Appraisal Report Appraisal Report Comprehensive Format Self Contained Appraisal Report Appraisal Report Standard Format Appraisal Report Concise Summary Format Summary Appraisal Report Minimum Requirements of Summary Appraisal Report Restricted Appraisal Report Restricted Appraisal Report Restricted Use Appraisal Report

78 Addenda USPAP Reporting Options The edition of USPAP requires that all written appraisal reports be prepared under one of the following options: Appraisal Report or Restricted Appraisal Report. An Appraisal Report summarizes the information analyzed, the appraisal methods employed, and the reasoning that supports the analyses, opinions, and conclusions. The requirements for an Appraisal Report are set forth in Standards Rule 2 2 (a) of USPAP. A Restricted Appraisal Report states the appraisal methods employed and the conclusions reached but is not required to include the data and reasoning that supports the analyses, opinions, and conclusions. Because the supporting information may not be included, the use of the report is restricted to the client, and further, the appraiser must maintain a work file that contains sufficient information for the appraiser to produce an Appraisal Report if required. The requirements for a Restricted Appraisal Report are set forth in Standards Rule 2 2 (b). Integra Reporting Formats under the Appraisal Report Option USPAP gives appraisers the flexibility to vary the level of information in an Appraisal Report depending on the intended use and intended users of the appraisal. Accordingly, Integra Realty Resources has established internal standards for three alternative reporting formats that differ in depth and detail yet comply with the USPAP requirements for an Appraisal Report. The three Integra formats are: Appraisal Report Comprehensive Format Appraisal Report Standard Format Appraisal Report Concise Summary Format An Appraisal Report Comprehensive Format has the greatest depth and detail of the three report types. It describes and explains the information analyzed, the appraisal methods employed, and the reasoning that supports the analyses, opinions, and conclusions. This format meets or exceeds the former Self Contained Appraisal Report requirements that were contained in the edition of USPAP. An Appraisal Report Standard Format has a moderate level of detail. It summarizes the information analyzed, the appraisal methods employed, and the reasoning that supports the analyses, opinions, and conclusions. This format meets or exceeds the former Summary Appraisal Report requirements that were contained in the edition of USPAP. An Appraisal Report Concise Summary Format has less depth and detail than the Appraisal Report Standard Format. It briefly summarizes the data, reasoning, and analyses used in the appraisal process while additional supporting documentation is retained in the work file. This format meets the minimum requirements of the former Summary Appraisal Report that were contained in the edition of USPAP. On occasion, clients will request, and Integra will agree to provide, a report that is labelled a Self Contained Appraisal Report. Other than the label, there is no difference between a Self Contained Appraisal Report and an Appraisal Report Comprehensive Format. Both types of reports meet or

79 Addenda exceed the former Self Contained Appraisal Report requirements set forth in the edition of USPAP. Integra Reporting Format under Restricted Appraisal Report Option Integra provides a Restricted Appraisal Report format under the USPAP Restricted Appraisal Report option. This format meets the requirements of the former Restricted Use Appraisal Report that were contained in the edition of USPAP.

80 Addenda Addendum C Financials and Property Information

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84 Realty Resource... Page 1 of 1 8/4/2014

85 Operating Statement Analysis 2013 statement LLC Operating Statement Statement Operating Statement Statement YTD Income & Expense Annualized INCOME EXPENSES Real Estate Taxes Insurance Utilities Gross Actual Rent Other Income (provide details / breakdown) Less: Physical Vacancy Less: Concessions Total Economic Vacancy Effective Gross Income Repair & Maint. (Net of Capital Exp) Management Fees General & Admin On-Site Mngt. Advertising and Marketing Payroll & Benefits (Onsite) Landscaping Misc / Other Expenses (provide details/breakdown) Total Operating Expenses Operating Expense as % EGI Capital Exp/Replacement Reserves Total Expenses with Reserves CAM reimbursement # of Months , , ,211 18,889 19,825 20, , , ,211 35,000 35,000 33,186 10,577 22,128 12,399 30,459 21,087 23,386 3,640 8, ,971-5,100 25,394 48,559 41, , , ,056 13,680 NOI 271, , ,155

86 Addenda Addendum D Comparable Data

87 Retail Sale Profile Location & Property Identification Property Name: Sub Property Type: Address: City/State/Zip: County: Submarket: Market Orientation: Property Location: Retail Strip Center Shopping Center, Strip/Convenience Center 4271 Elvis Presley Boulevard Memphis, TN Shelby Southwest Urban WS of Elvis Presley Blvd, N of Chambliss Lat./Long.: / IRR Event ID ( ) Sale Information Sale Price: $813,000 Eff. R.E. Sale Price: $813,000 Sale Date: 06/07/2013 Sale Status: Closed $/SF GBA: $50.02 $/SF NRA: $50.02 Case Study Type: None Grantor/Seller: William E. Gerber, Trustee Grantee/Buyer: National Cities Corporation Property Rights: Leased Fee % of Interest Conveyed: Financing: Cash to seller Document Type: Deed Recording No.: Verified By: Mr. Jonathan H. Stone Verification Date: 1/27/14 Verification Source: Frank Dyer, Loeb Properties Verification Type: Confirmed Seller Broker Operating Data and Key Indicators Potential Gross Income: $130,040 Vacancy Rate: 5% Effective Gross Income: $123,538 Expenses: $25,978 Net Operating Income: $97,560 Operating Data Type: Pro forma Owner GRM Actual: 6.25 EGIM Actual: 6.58 OAR(Cap. rate)actual: 12.00% Expense Ratio: 21.03% Improvement and Site Data Legal/Tax/Parcel ID: GBA SF: 16,255 GLA SF: 16,255 Acres(Usable/Gross): 1.29/1.29 Land SF(Usable/Gross): 56,192/56,192 Usable/Gross Ratio: 1.00 Year Built: 1966 Building/M&S Class: C/C Construction Quality: Average Improvements Cond.: Fair Exterior Walls: Brick No. of Buildings/Stories: 1/1 Fire Sprinkler Type: None Air Conditioning Type: Central Shape: Rectangular Topography: Level Bldg. to Land Ratio FAR: 0.28 Zoning Code: CMU 3 Zoning Desc.: Commercial Mixed Use Flood Plain: No Retail Strip Center

88 Retail Sale Profile Improvement and Site Data (Cont'd) Flood Zone Designation: Source of Land Info.: Comments X Public Records Sale of retail strip center located on Elvis Presley Boulevard in Whitehaven area of south Memphis. Property was 100% leased at the time of sale, and rental rates ranged from $7 $9/SF Gross. Broker indicated that the property sold at a 12% capitalization rate based upon a negotiated pro forma due to some leases coming up for renewal or termination that had options to renew. Tenants include Rent A Center, Simply Fashion, and Catherine s clothing store. Retail Strip Center

89 Retail Sale Profile Location & Property Identification Property Name: Sub Property Type: Address: City/State/Zip: County: Southgate Shopping Center Shopping Center, Neighborhood Center S. Adams Street Fulton, MS Itawamba Market Orientation: Small Town Non Metro Lat./Long.: / IRR Event ID ( ) Sale Information Sale Price: $1,250,000 Eff. R.E. Sale Price: $1,250,000 Sale Date: 04/30/2011 Sale Status: Closed $/SF GBA: $23.50 $/SF NRA: $25.25 Case Study Type: None Assets Sold: Real estate only Property Rights: Leased Fee % of Interest Conveyed: Financing: Cash to seller Document Type: Deed Verified By: Mr. Jonathan H. Stone Verification Date: 1/10/13 Verification Type: Secondary Verification Operating Data and Key Indicators Vacancy Rate: 28% Net Operating Income: $156,125 OAR(Cap. rate)actual: 12.49% GBA SF: 53,200 GLA SF: 49,500 Acres(Usable/Gross): 5.95/5.95 Land SF(Usable/Gross): 259,182/259,182 Usable/Gross Ratio: 1.00 Year Built: 1980 Construction Quality: Average Exterior Walls: Block No. of Buildings/Stories: 1/1 Air Conditioning Type: Central Bldg. to Land Ratio FAR: 0.20 Flood Plain: No Flood Zone Designation: X Improve. Info. Source: Public Records Source of Land Info.: Public Records Comments Sale of a potion of a neighborhood shopping center anchored by a Food Giant and Fred's store. The sale did not include the Food Giant grocery. The center is located in the small town of Fulton, just east of Tupleo, MS. Improvement and Site Data MSA: Legal/Tax/Parcel ID: Tupelo, MS Micropolitan Statistical Area Southgate Shopping Center

90 Retail Sale Profile Location & Property Identification Property Name: Sub Property Type: Address: City/State/Zip: County: Quitman Retail Center Shopping Center, Strip/Convenience Center 548 S. Archusa Ave. Quitman, MS Clarke Market Orientation: Suburban Lat./Long.: / IRR Event ID ( ) Sale Information Sale Price: $1,592,438 Eff. R.E. Sale Price: $1,592,438 Sale Date: 08/15/2011 Sale Status: Closed $/SF GBA: $44.90 $/SF NRA: $45.89 Eff. Price/Unit: $227,491 /Tenant Case Study Type: None Grantor/Seller: Southern Development of Van Cleave, Inc. Grantee/Buyer: Regency Commercial Associates, LLC Assets Sold: Real estate only Property Rights: Leased Fee % of Interest Conveyed: Document Type: Deed Verified By: Mark Pannell Verification Date: 11/7/12 Verification Source: Sales contract; deed; Clarke County public records Verification Type: Confirmed Other Operating Data and Key Indicators Vacancy Rate: 10% Net Operating Income: $171,983 OAR(Cap. rate)actual: 10.80% OAR(Cap. Rate)Reported: 10.80% Sale Analysis Current Use: Proposed Use Change: Improvement and Site Data Shopping Center No MSA: Meridian, MS Micropolitan Statistical Area Legal/Tax/Parcel ID: 099A GBA SF: 35,467 GLA SF: 34,700 Acres(Gross): 3.08 Land SF(Gross): 134,164 Year Built: 2000 Construction Quality: Average Improvements Cond.: Fair Exterior Walls: Metal No. of Buildings/Stories: 1/1 No. of Units/Unit Type: 7/Tenants Multi Tenant/Condo.: Yes/No Total Parking Spaces: 152 Park. Ratio 1000 SF GLA: 4.38 No. Surface Spaces: 152 Park. Ratio 1000 SF GBA: 4.29 Park Ratio(Space/Unit): Quitman Retail Center

91 Retail Sale Profile Improvement and Site Data (Cont'd) Density Unit/Gross Acre: 2.27 Bldg. to Land Ratio FAR: 0.26 Excess/Surplus Land: No Zoning Code: I 1 Zoning Desc.: Industrial District Encumbrance/Easements: No Environmental Issues: No Flood Plain: No Flood Zone Designation: X Utilities: Electricity, Water Public, Sewer, Gas, Telephone Utilities Desc.: All public utilities. Improve. Info. Source: Inspection Source of Land Info.: Past Appraisal Comments This comparable represents the sale of the Quitman Retail Center located at 548 South Archusa Avenue in Quitman, MS. The sale of this center was part of a three property portfolio sale. Based on the cap rate, the sales price was $1,592,438. Tenants at the time of the sale included Greers and Family Dollar. This is a 7 unit shopping center. Located in Quitman, Mississippi. The improvements are metal construction with a brick facade. Quitman Retail Center

92 Retail Sale Profile Location & Property Identification Property Name: Shelby Crossing Shopping Center Sub Property Type: Shopping Center, Strip/Convenience Center Address: 6100 Macon Road City/State/Zip: County: Memphis, TN Shelby Submarket: Northeast Market Orientation: Suburban Property Location: Northeast corner of Macon & Sycamore View Rd. (North line is I 40) Lat./Long.: / IRR Event ID ( ) Sale Information Sale Price: $1,150,000 Eff. R.E. Sale Price: $1,150,000 Sale Date: 03/26/2014 Sale Status: Closed $/SF GBA: $35.78 $/SF NRA: $35.78 Grantor/Seller: Flagstar Bank FSB Grantee/Buyer: PNL Cumberland, LLC Property Rights: Leased Fee % of Interest Conveyed: Financing: Cash to seller Document Type: Warranty Deed Recording No.: Verified By: Quinton C. Robinson Verification Source: Sales Contract Verification Type: Confirmed Seller Operating Data and Key Indicators Potential Gross Income: $411,261 Effective Gross Income: $362,322 Expenses: $132,519 Net Operating Income: $229,803 Reserves Included: Yes Operating Data Type: IRR Projection GRM Actual: 2.80 EGIM Actual: 3.17 OAR(Cap. rate)actual: 19.98% Expense Ratio: 36.57% Management Included: Yes Improvement and Site Data MSA: Memphis, TN MS AR Metropolitan Statistical Area Legal/Tax/Parcel ID: GBA SF: 32,140 GLA SF: 32,140 Acres(Usable/Gross): 3.24/3.24 Land SF(Usable/Gross): 141,090/141,090 Usable/Gross Ratio: 1.00 Year Built: 1988 Construction Quality: Average Improvements Cond.: Average Exterior Walls: Concrete Precast Construction Desc.: Masonry No. of Buildings/Stories: 1/1 Total Parking Spaces: 90 Park. Ratio 1000 SF GLA: 2.80 No. Surface Spaces: 90 Shelby Crossing Shopping Center

93 Retail Sale Profile Improvement and Site Data (Cont'd) Park. Ratio 1000 SF GBA: 2.80 Fire Sprinkler Type: Wet Air Conditioning Type: Electric Roof Comm.: Package HVAC; Commercial Built up roof Shape: Irregular Topography: Level Vegetation: Minimal Corner Lot: Yes Frontage Desc.: Macon Road Frontage Type: 2 way, 2 lanes each way Traffic Control at Entry: None Traffic Flow: High Traffic Count: High AccessibilityRating: Average Visibility Rating: Good Bldg. to Land Ratio FAR: 0.23 Zoning Code: CMU 3 Zoning Desc.: Commercial Mixed Use Encumbrance/Easements: Yes Easements Desc.: Ingress and egress easement Environmental Issues: No Flood Plain: No Flood Zone Designation: X Comm. Panel No.: 47157C0311G Date: 02/06/2013 Utilities Desc.: All public utilities available at site. Improve. Info. Source: Inspection Source of Land Info.: Public Records Comments Sale of a neighborhood shopping center in the Northeast retail submarket. The property was 83% leased at the time of sale. The capitalization rate is based upon the appraisers projection of stabilized operating expenses. An outdoor advertising sign, which is ground leased, is also located on the site. Existing strip retail property containing 32,112 square feet of gross leaseable area. Improvements were constructed in An outdoor advertising sign, which is ground leased, is also located on the property. Site area is acres or 141,091 square feet. Shelby Crossing Shopping Center

94 Retail Lease Profile Location & Property Identification Property Name: Southaven Retail Strip Center Sub Property Type: Shopping Center, Strip/Convenience Center Address: U.S. Highway 51 City/State/Zip: Southaven, MS County: Desoto Submarket: DeSoto County Market Orientation: Suburban Property Location: Northwest corner of U.S. Hwy 51 and Custer Drive Lat./Long.: / IRR Event ID (756058) Lease Information Lessee: Beautiful Nails Init Year Contract Rate: $10.00 /$/SF/YR Effective Lease Rate: $10.00 /$/SF/YR Lease Commencement: 07/01/2013 Lease Expiration: 06/30/2018 Term of Lease: 60 months Space Type: Retail Transaction Reliability: Imported V NRA: 750 Leased Area: 750 Suite #: 7913 Lease Expense Information Lease Reimburse. Type: Improvement and Site Data Modified Gross MSA: Memphis, TN MS AR Metropolitan Statistical Area Legal/Tax/Parcel ID: GBA SF: 17,500 GLA SF: 17,500 Acres(Usable/Gross): 1.84/1.84 Land SF(Usable/Gross): Usable/Gross Ratio: 79,989/79, Year Built: 1975 Construction Quality: Average Improvements Cond.: Fair Construction Desc.: Masonry No. of Buildings/Stories: 2/1 Total Parking Spaces: 48 Park. Ratio 1000 SF GLA: 2.74 No. Surface Spaces: 48 Park. Ratio 1000 SF GBA: 2.74 Shape: Irregular Topography: Level Frontage Feet: 580 Frontage Desc.: U.S. Hwy '; Custer Drive 160' Bldg. to Land Ratio FAR: 0.22 Zoning Code: C 4 Zoning Desc.: Planned Commercial District Flood Plain: No Flood Zone Designation: X Comm. Panel No.: 28033C0057G Date: 06/04/2007 Source of Land Info.: Public Records Southaven Retail Strip Center

95 Retail Lease Profile Location & Property Identification Property Name: Southaven Retail Strip Center Sub Property Type: Shopping Center, Strip/Convenience Center Address: U.S. Highway 51 City/State/Zip: Southaven, MS County: Desoto Submarket: DeSoto County Market Orientation: Suburban Property Location: Northwest corner of U.S. Hwy 51 and Custer Drive Lat./Long.: / IRR Event ID (756065) Lease Information Lessee: Estilos (Salon) Init Year Contract Rate: $10.40 /$/SF/YR Effective Lease Rate: $10.40 /$/SF/YR Lease Commencement: 02/01/2014 Lease Expiration: 01/31/2015 Term of Lease: 12 months Space Type: Retail Transaction Reliability: Imported V NRA: 750 Leased Area: 750 Suite #: 7937 Lease Expense Information Lease Reimburse. Type: Improvement and Site Data Modified Gross MSA: Memphis, TN MS AR Metropolitan Statistical Area Legal/Tax/Parcel ID: GBA SF: 17,500 GLA SF: 17,500 Acres(Usable/Gross): 1.84/1.84 Land SF(Usable/Gross): Usable/Gross Ratio: 79,989/79, Year Built: 1975 Construction Quality: Average Improvements Cond.: Fair Construction Desc.: Masonry No. of Buildings/Stories: 2/1 Total Parking Spaces: 48 Park. Ratio 1000 SF GLA: 2.74 No. Surface Spaces: 48 Park. Ratio 1000 SF GBA: 2.74 Shape: Irregular Topography: Level Frontage Feet: 580 Frontage Desc.: U.S. Hwy '; Custer Drive 160' Bldg. to Land Ratio FAR: 0.22 Zoning Code: C 4 Zoning Desc.: Planned Commercial District Flood Plain: No Flood Zone Designation: X Comm. Panel No.: 28033C0057G Date: 06/04/2007 Source of Land Info.: Public Records Southaven Retail Strip Center

96 Retail Lease Profile Location & Property Identification Property Name: Southaven Retail Millbranch Road Sub Property Type: Freestanding, Street/Highway Retail Address: Millbranch Road City/State/Zip: Southaven, MS County: Desoto Submarket: DeSoto County Market Orientation: Suburban Property Location: NWC of Millbranch and Stateline Road Lat./Long.: / IRR Event ID (586161) Lease Information Lessee: Cell Phones & Accessory Init Year Contract Rate: $7.20 /$/SF/YR Effective Lease Rate: $7.20 /$/SF/YR Lease Commencement: 05/01/2013 Lease Expiration: 07/31/2015 Term of Lease: 27 months Lease Type: Local Space Type: Retail Verified with: Office Files Transaction Reliability: IRR Confirmed NRA: 2,000 Leased Area: 2,000 Suite #: 9023 Lease Expense Information Lease Reimburse. Type: Tenant Pays: Improvement and Site Data Modified Gross Tenant Utilities MSA: Memphis, TN MS AR Metropolitan Statistical Area Legal/Tax/Parcel ID: ; ; GBA SF: 20,200 GLA SF: 20,200 Acres(Usable/Gross): 1.43/1.43 Land SF(Usable/Gross): 62,160/62,160 Usable/Gross Ratio: 1.00 Year Built: 1975 Construction Quality: Average Improvements Cond.: Fair Exterior Walls: Brick Construction Desc.: Masonry No. of Buildings/Stories: 3/1 Total Parking Spaces: 76 Park. Ratio 1000 SF GLA: 3.76 No. Surface Spaces: 76 Park. Ratio 1000 SF GBA: 3.76 No. Of Elevators: None Fire Sprinkler Type: None Air Conditioning Type: Electric Roof Comments: Individual packaged HVAC; Asphalt shingle roof Shape: Rectangular Topography: Level Vegetation: Minimal Corner Lot: Yes Frontage Feet: 697 Frontage Desc.: 592' Millbranch Road, 105' State Line Road Frontage Type: 2 way, 2 lanes each way Southaven Retail Millbranch Road

97 Retail Lease Profile Location & Property Identification Property Name: Southaven Strip Retail Sub Property Type: Freestanding, Street/Highway Retail Address: Millbranch City/State/Zip: Southaven, MS County: Desoto Submarket: DeSoto County Market Orientation: Suburban Property Location: E/S of Millbranch Road, South of Stateline Road Lat./Long.: / IRR Event ID (651712) Lease Information Lessee: Southaven Shoe Repair Init Year Contract Rate: $7.64 /$/SF/YR Effective Lease Rate: $7.64 /$/SF/YR Lease Commencement: 05/01/2013 Lease Expiration: 04/30/2018 Term of Lease: 60 months Lease Type: Local Space Type: Retail Escalations: None Verified with: Appraisal Files Transaction Reliability: IRR Confirmed NRA: 1,100 Leased Area: 1,100 Full Building Lease: No Lease Expense Information Lease Reimburse. Type: Tenant Pays: Improvement and Site Data Modified Gross Tenant Utilities MSA: Memphis, TN MS AR Metropolitan Statistical Area Legal/Tax/Parcel ID: , ; , GBA SF: 22,400 GLA SF: 22,400 Acres(Usable/Gross): 1.58/1.58 Land SF(Usable/Gross): 68,701/68,701 Usable/Gross Ratio: 1.00 Year Built: 1975 Construction Quality: Average Improvements Cond.: Fair Exterior Walls: Brick Construction Desc.: Masonry No. of Buildings/Stories: 3/1 Total Parking Spaces: 81 Park. Ratio 1000 SF GLA: 3.62 No. Surface Spaces: 81 Park. Ratio 1000 SF GBA: 3.62 No. Of Elevators: None Fire Sprinkler Type: None Air Conditioning Type: Electric Roof Comments: Individualized HVAC package; Asphalt shingle roof Shape: Rectangular Topography: Level Vegetation: Minimal Corner Lot: No Frontage Feet: 505 Frontage Desc.: Millbranch Road Frontage Type: 2 way, 2 lanes each way Accessibility Rating: Average Visibility Rating: Average Southaven Strip Retail

98 Retail Lease Profile Improvement and Site Data (Cont'd) Bldg. to Land Ratio FAR: 0.33 Zoning Code: C 3 Zoning Desc.: General Commercial District Encumbrance/Easements: No Environmental Issues: No Flood Plain: No Flood Zone: Outside of 500 year flood plain Flood Zone Designation: X Comm. Panel No.: 28033C0057G Date: 06/04/2007 Utilities: Electricity, Water Public, Sewer, Gas, Telephone, CableTV Utilities Desc.: Improve. Info. Source: Source of Land Info.: Comments All public utilities available at site. Inspection Public Records Existing multitenant retail property consisting of 3 buildings with a total of 22,400 square feet of gross leaseable area. Improvements were constructed in Site area is 1.57 acres or 68,431 square feet. Renewal of 1,100 SF located at Millbranch East strip center located immediately north of Stateline Road (Main Street) in Southaven, MS. Five year lease at $700/month with the tenant responsible for utilities. Southaven Strip Retail

99 Retail Lease Profile Location & Property Identification Property Name: Strip Retail Sub Property Type: Freestanding, Street/Highway Retail Address: 2136 Stateline Road City/State/Zip: Southaven, MS County: Desoto Submarket: Horn Lake/Southaven Market Orientation: Suburban Property Location: NS of Stateline Rd, W of U.S. Hwy 51 Lat./Long.: / IRR Event ID (644395) Lease Information Lessee: 7 Salon & Cutz Init Year Contract Rate: $6.00 /$/SF/YR Effective Lease Rate: $6.00 /$/SF/YR Lease Commencement: 02/01/2013 Lease Expiration: 01/31/2016 Term of Lease: 36 months Lease Type: Local Space Type: Retail Escalations: None Verified with: Jim Brown Properties Transaction Reliability: IRR Confirmed NRA: 1,200 Leased Area: 1,200 Full Building Lease: No Lease Expense Information Lease Reimburse. Type: Landlord Pays: Tenant Pays: Triple Net Management Fees, Administration Fees, Structural Repairs RE Taxes, Property Insurance, Utilities, Repairs & Maintenance, CAM MSA: Memphis, TN MS AR Metropolitan Statistical Area Legal/Tax/Parcel ID: GBA SF: 15,600 GLA SF: 15,600 Acres(Usable/Gross): 1.33/1.33 Land SF(Usable/Gross): 57,847/57,847 Usable/Gross Ratio: 1.00 Year Built: 1989 Building/M&S Class: C/S Construction Quality: Average Improvements Cond.: Fair Exterior Walls: Metal No. of Buildings/Stories: 1/1 Air Conditioning Type: Central Frontage Type: 2 way, 1 lane each way Traffic Control at Entry: None Traffic Flow: Moderate Accessibility Rating: Average Visibility Rating: Average Bldg. to Land Ratio FAR: 0.26 Source of Land Info.: Public Records Comments Small shop lease to 7 Salon & Cutz within a strip retail center in Southaven, MS. Triple net lease, 3 year term. Tenant excepted space in "as is" condition. Improvement and Site Data Strip Retail

100 Retail Lease Profile Improvement and Site Data (Cont'd) Traffic Control at Entry: None Traffic Flow: Moderate Traffic Count: Moderate Accessibility Rating: Average Visibility Rating: Average Bldg. to Land Ratio FAR: 0.33 Zoning Code: C 3 Zoning Desc.: General Commercial District Encumbrance/Easements: No Environmental Issues: No Flood Plain: No Flood Zone: Outside of 500 year flood plain Flood Zone Designation: X Comm. Panel No.: 28033C0057G Date: 06/04/2007 Utilities: Electricity, Water Public, Sewer, Gas, Telephone, CableTV Utilities Desc.: Improve. Info. Source: Source of Land Info.: Comments All public utilities available at site. Inspection Public Records Existing multi tenant retail property consisting of three buildings containing a total of 20,200 square feet of gross leasable area. Improvements were constructed in approximately Site area is 1.51 acres or 65,649 square feet. 2,000 square foot in line space leased at $1,200/mo, or $7.20/SF, on a modified gross basis. Southaven Retail Millbranch Road

101 Retail Lease Profile Location & Property Identification Property Name: The Colonnade Address: City/State/Zip: County: 346 Stateline Rd. Southaven, MS Desoto Market Orientation: Property Location: Suburban North side of Stateline Road, East of Interstate 55 Lat./Long.: / IRR Event ID (558481) Lease Information Lessor: Paul Wardlaw Lessee: Mid South Bedding Direct Init Year Contract Rate: $8.50 /$/SF/YR Effective Lease Rate: $8.50 /$/SF/YR Lease Commencement: 12/01/2011 Lease Expiration: 11/30/2014 Term of Lease: 36 months Lease Type: Local Space Type: Retail Escalations: None Verified with: Paul Wardlaw, Owner Transaction Reliability: IRR Confirmed NRA: 1,200 Leased Area: 1,200 Lease Expense Information Lease Reimburse. Type: Improvement and Site Data Triple Net MSA: Memphis, TN MS AR Metropolitan Statistical Area Legal/Tax/Parcel ID: GBA SF: 12,754 GLA SF: 12,754 Acres(Usable/Gross): 2.00/2.00 Land SF(Usable/Gross): 87,120/87,120 Usable/Gross Ratio: 1.00 Year Built: 1988 Building/M&S Class: C/S Construction Quality: Average Improvements Cond.: Average Exterior Walls: Stucco Construction Desc.: Light weight steel frame No. of Buildings/Stories: 1/1 Multi Tenant/Condo.: Yes/No Air Conditioning Type: Central Shape: Rectangular Topography: Level Corner Lot: No Frontage Type: 2 way, 3 lanes each way Traffic Control at Entry: Turn lane Traffic Flow: High Accessibility Rating: Average Visibility Rating: Average Bldg. to Land Ratio FAR: 0.14 Zoning Code: C 3 Zoning Desc.: Commercial Encumbrance/Easements: No Environmental Issues: No Flood Plain: No Utilities Desc.: Public utilities available at site Improve. Info. Source: Source of Land Info.: Comments Public Records Public Records The Colonnade

102 Retail Lease Profile Comments (Cont'd) One story, multi tenant neighborhood retail center that contains seven bays. Three year lease of 1,200 square feet of retail space on a triple net basis, in a neighborhood retail center with good access and exposure. Lease did not include any TI's, free rent or renwal options. No escalations are present, however, taxes and insurance are capped at the 2011 rate. The Colonnade

103 Retail Lease Profile Location & Property Identification Property Name: Southaven Commons Shopping Center Sub Property Type: Shopping Center, Neighborhood Center Address: 975 E. Goodman Road City/State/Zip: Southaven, MS County: Desoto Submarket: DeSoto County Market Orientation: Suburban Property Location: Northeast corner of Goodman Rd and Swinnea Rd., west of the primary retail area at Interstate 55 Lat./Long.: / IRR Event ID (742958) Lease Information Lessor: HSBC Bank USA, NA, Trustee Lessee: You Fit Init Year Contract Rate: $6.25 /$/SF/YR Effective Lease Rate: $6.25 /$/SF/YR Lease Commencement: 03/01/2014 Lease Expiration: 04/01/2024 Term of Lease: 121 months Space Type: Retail Verified with: Office files Transaction Reliability: IRR Confirmed NRA: 12,000 Leased Area: 12,000 Lease Expense Information Lease Reimburse. Type: Estimated Annual Property Expenses ($/SF): Triple Net $3.12 Improvement and Site Data MSA: Memphis, TN MS AR Metropolitan Statistical Area Legal/Tax/Parcel ID: GBA SF: 116,850 GLA SF: 116,850 Acres(Usable/Gross): 13.34/13.34 Land SF(Usable/Gross): 580,874/580,874 Usable/Gross Ratio: 1.00 Year Built: 1992 Construction Quality: Average Improvements Cond.: Average Exterior Walls: Block Construction Desc.: Masonry No. of Buildings/Stories: 2/1 Total Parking Spaces: 733 Park. Ratio 1000 SF GLA: 1.26 No. Surface Spaces: 733 Park. Ratio 1000 SF GBA: 6.27 Park Ratio(Space/Unit): Shape: Irregular Topography: Level Corner Lot: Yes Frontage Feet: 934 Frontage Desc.: 408' Goodman Road; 526' Swinnea Road Density Unit/Gross Acre: 0.15 Density Unit/Usable Acre: 0.15 Bldg. to Land Ratio FAR: 0.20 Zoning Code: C 4 Southaven Commons Shopping Center

104 Retail Lease Profile Location & Property Identification Property Name: Sub Property Type: The Market at Southaven Shopping Center, Strip/Convenience Center Address: 151 Stateline Road W. City/State/Zip: Southaven, MS County: Desoto Market Orientation: Suburban Property Location: Southeast corner of Stateline Road and Market Place Drive Lat./Long.: / IRR Event ID (765331) Lease Information Lessee: Ammar M. Ammar (Bargain Depot) Init Year Contract Rate: $4.77 /$/SF/YR Effective Lease Rate: $4.77 /$/SF/YR Lease Commencement: 11/01/2013 Lease Expiration: 10/31/2018 Term of Lease: 60 months Space Type: Retail Escalations: Fixed Steps Transaction Reliability: Imported V NRA: 6,288 Leased Area: 6,288 Suite #: 201 9A/10 Lease Expense Information Lease Reimburse. Type: Improvement and Site Data Triple Net MSA: Memphis, TN MS AR Metropolitan Statistical Area Legal/Tax/Parcel ID: /200/300 GBA SF: 60,493 GLA SF: 60,493 Acres(Usable/Gross): 11.21/11.21 Land SF(Usable/Gross): 488,307/488,307 Usable/Gross Ratio: 1.00 Year Built: 1987 Construction Quality: Average Improvements Cond.: Average Construction Desc.: Masonry No. of Buildings/Stories: 2/1 Shape: Rectangular Topography: Level Frontage Feet: 1411 Frontage Desc.: 611' Stateline Road; 800' Market Place Drive Bldg. to Land Ratio FAR: 0.12 Zoning Code: C 3 Zoning Desc.: General Commercial District Flood Plain: No Flood Zone Designation: X Comm. Panel No.: 28033C0076G Date: 06/04/2007 Source of Land Info.: Public Records Comments Two months rent abatement. Rent increases $1.00/SF on 5/1/2015 and 11/1/2016. Operating expenses are estimated at $3.50/SF. The Market at Southaven

105 Retail Lease Profile Improvement and Site Data (Cont'd) Zoning Desc.: Planned Commercial Flood Plain: No Flood Zone Designation: X Comm. Panel No.: 28033C0078G Date: 06/04/2007 Source of Land Info.: Public Records Comments Grocery anchored retail center. Expense per square foot $2.93 Subanchor space. One month of rent abatement. Rent increases to $9.50/SF on 2/16/2015 and $10.50 on $4/17/2019. There are two, 5 year renewal options available. Operating expenses are estimated at $3.12/SF Southaven Commons Shopping Center

106 Retail Lease Profile Location & Property Identification Property Name: Sub Property Type: Address: City/State/Zip: County: Submarket: Market Orientation: The Village Shops Shopping Center, Neighborhood Center 7501 Goodman Rd. Olive Branch, MS Desoto Southaven/Horn Lake Suburban Lat./Long.: / IRR Event ID (721120) Lease Information Lessee: Sears Hometown Store Init Year Contract Rate: $6.82 /$/SF/YR Effective Lease Rate: $6.82 /$/SF/YR Lease Commencement: 10/19/2011 Lease Expiration: 10/18/2018 Term of Lease: 84 months Lease Type: Local Space Type: Retail Escalations: Fixed Steps Verified with: property rent roll Transaction Reliability: IRR Confirmed NRA: 5,480 Leased Area: 5,480 Lease Expense Information Lease Reimburse. Type: Improvement and Site Data Triple Net MSA: Memphis, TN MS AR Metropolitan Statistical Area Legal/Tax/Parcel ID: GBA SF: 30,269 GLA SF: 30,269 Acres(Usable/Gross): 3.31/3.31 Land SF(Usable/Gross): 144,183/144,183 Usable/Gross Ratio: 1.00 Year Built: 2002 Most Recent Renovation: 2011 Building/M&S Class: B/B Improvements Cond.: Good Exterior Walls: Brick Construction Desc.: Masonry brick No. of Buildings/Stories: 1/1 Density Unit/Gross Acre: 0.30 Density Unit/Usable Acre: 0.30 Bldg. to Land Ratio FAR: 0.20 Zoning Code: PD Zoning Desc.: Planned Development Source of Land Info.: Public Records Comments Tenant also pays pro rata share of property taxes, insurance and common area maintenance. In addition to base rent tenant also pays a percentage rent of total gross sales over $1,500,000 for years 1 3, (2.5%) and in years 4 7 total gross sales over $1,500,000 by 5%. Tenant base rent is as follow: Months 1 12 $3, per month; $37,384 per year or $6.82 per square foot; Months $3, per month; $38,545 per year or $7.03 per square foot; Months $3, per month; $39,695 per year; or $7.24 per square foot, Months $3, per month; $40,874 per year or The Village Shops