1 | P a g e

RESTRICTED APPRAISAL REPORT REAL ESTATE APPRAISAL

Of

DT57 Towers

1020 Lewis Ave, 325 S. 11th St, 321 S. 11th St, 317 S. 11th St, & 324 S. Maryland Pwky, Las Vegas

Clark County NV, 89101

As of

November 20, 2018

Prepared For Mr Daniel Riceberg BDR Cascadia LLC

756 S Broadway Suite 1101 Los Angeles, CA, 90014

Prepared by

REAL ESTATE ADVISORY LLC. Tim Thibodeaux, CGA, Nevada -A.0207394-CG

File Name: RE180901

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December 19, 2018 Mr Daniel Riceberg BDR Cascadia LLC 756 S Broadway Suite 1101 Los Angeles, CA 90014

Re: Restricted Appraisal Report, Real Estate Appraisal DT57 Towers 1020 Lewis Ave, 325 S. 11th St, 321 S. 11th St, 317 S. 11th St, & 324 S. Maryland Pwky, Las Vegas, Clark County, NV, 89101 File Name: RE180901

Dear Mr Riceberg: At your request, I have prepared an appraisal for the above-referenced property based on a hypothetical condition. The appraisal is based on the “As Is” value of the underlying land value only per the request of the client. which may be briefly described as follows: The subject property comprises five lots, all are rectangular-shaped land parcels, identified as Property 1 APNs 139-34-712-120, 139-34-712-099, 139-34-712-101, 139-34-712-100 & Property 2 APN 139-34-712-098, with a total land area of 1.36 acres, based on public record. The subject parcels are occupied with multifamily residential buildings which will be razed for a project of approximately 250 unit within a Highrise apartment towers.

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This appraisal report was prepared with the intent to conform with Federal Reserve Board, Federal Regulation 12 CFR 564, the Uniform Standards of Professional Practice (USPAP) as provided by the Appraisal Foundation, and the federal bank regulating agencies, Title XI of the Federal Financial Institution Reform, Recovery and Enforcement Act (FIRREA) and Standard Appraisal Policies and Procedures. In addition, this report complies with the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute, applicable state regulations, and the appraisal guidelines. Also, the appraiser has not relied on conclusions which are based on characteristics related to race, color, religion, national origin, gender, marital status, familial status, age, receipt of public assistance income, handicap, or group homogeneity. To report the assignment results, I use the appraisal report option of Standards Rule 2-2(a) of USPAP. Accordingly, this report contains summary discussions of the data, reasoning, and analyses which are used in the appraisal process, while supporting documentation is retained in our work file. The depth of discussion contained in this report is specific to the needs of the intended user and intended use of the appraisal. The purpose of the appraisal is to develop an opinion of the Current “As Is” Market Value of the Fee Simple interest of the subject property. to assist the Client (Daniel Riceberg) and intended users in making a lending decision for two 15-story apartment hi-rises consists of approximate 250 units. The function of this appraisal is for use by client, to determine market value. Please reference page 12 of this report for important information regarding the scope of research and analysis for this appraisal, including property identification, inspection, highest and best use analysis and valuation methodology. I certify that I have no present or contemplated future interest in the property beyond this estimate of value. The appraisers have not performed any prior services regarding the subject within the previous three years of the appraisal date. Your attention is directed to the Limiting Conditions and Assumptions section of this report (page 10). Acceptance of this report constitutes an agreement with these conditions and assumptions. In particular, I note the following:

Hypothetical Conditions: None

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• The appraisal is based on the hypothetical condition. The appraisal is based on the “As Is” value of the underlying land value only per the request of the client.

Extraordinary Assumptions:

No environmental (Phase I) or geotechnical reports were provided for review. I assume the site is to be free or any environmental hazards and that the land is suitable, from a geotechnical standpoint (soils), for the existing development.

Based on the appraisal described in the accompanying report, subject to the Limiting Conditions and Assumptions, Extraordinary Assumptions and Hypothetical Conditions (if any), I have made the following value conclusion(s): Current “As Is” Market Value: The “As Is” market value of the Fee Simple estate of the property, as of November 20, 2018, is Four Million Four Hundred Thousand Dollars ($4,400,000) The market exposure time in the 24 months preceding November 20, 2018, for land parcels within a five mile radius of the subject, would have been approximately 4-14 months. In addition, a typical marketing period for the subject in its “As Is” condition is also estimated to be approximately 4-14 months, which is considered reasonable for the subject property, in our opinion. Respectfully submitted, Real Estate Advisory LLC.

Tim Thibodeaux, CGA Nevada -A.0207394-CG

Expiration date: July 31, 2020

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TABLE OF CONTENTS Summary of Important Facts and Conclusions ............................................................................... 6 Definition of Market Value ........................................................................................................... 10 Definition of As Is Market Value ................................................................................................. 10 Definition of Property Rights Appraised ...................................................................................... 10 Limiting Conditions and Assumptions ......................................................................................... 11 Scope of Work .............................................................................................................................. 13 Market Area Analysis ................................................................................................................... 15

Market Area Location and Boundaries ..................................................................................... 15 Market Area and Property Characteristics ................................................................................ 15 Location Map ............................................................................................................................ 23

Las Vegas Area Analysis .............................................................................................................. 24 Multifamily Analysis .................................................................................................................... 35 Submarket Multifamily Analysis .................................................................................................. 43 Property Description ..................................................................................................................... 50

Site Map .................................................................................................................................... 61 Subject Photographs.................................................................................................................. 64

Eleventh StreetAssessment and Taxes .......................................................................................... 70 Assessment Analysis ................................................................................................................. 71

Highest and Best Use .................................................................................................................... 76 Valuation Methodology ................................................................................................................ 77

Analyses Applied ...................................................................................................................... 77 Sales Comparison Approach – Land Valuation ............................................................................ 79

Land Comparables .................................................................................................................... 79 Comparables Map ..................................................................................................................... 86 Analysis Grid ............................................................................................................................ 86 Comparable Land Sale Adjustments ......................................................................................... 88 Sales Comparison Approach Conclusion – Land Valuation..................................................... 90

Final Reconciliation ...................................................................................................................... 90 Value Indication ........................................................................................................................ 90 Value Conclusion ...................................................................................................................... 90

Certification Statement ................................................................................................................. 91 Addenda ........................................................................................................................................ 93 Glossary ........................................................................................................................................ 99

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Summary of Important Facts and Conclusions

GENERAL Subject:

DT57 Towers 1020 Lewis Ave, 325 S. 11th St, 321 S. 11th St, 317 S. 11th St, & 324 S. Maryland Pwky, Las Vegas, Clark County, NV, 89101 The subject property comprises five lots, all are rectangular-shaped land parcels, identified as Property 1 APNs 139-34-712-120, 139-34-712-099, 139-34-712-101, 139-34-712-100 & Property 2 APN 139-34-712-098, with a total land area of 1.36 acres, based on public record. The subject parcels are occupied with multifamily residential buildings which will be razed for a project of approximately 250 unit within a Highrise apartment towers.

Owner: Borrower:

BDR CASCADIA LLC/Morales Jose Regalado/Morales Graciela BDR CASCADIA LLC

Legal Description:

Pioneer Hgts Add Plat Book 1 Page 35 Lot 17 Block 15 & Lots 18-20 Sec 34 TWP 20 Rng 61

Date of Report:

December 19, 2018

Intended Use:

The intended use is to assist the Client (Daniel Riceberg) and intended users in making a lending decision for two 15-story apartment hi-rises consists of approximate 250 units.

Intended User(s):

The function of this appraisal is for use by client, to determine market value.

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Assessment:

Real Estate Assessment and TaxesTax ID Land Improvements Total

AssessmentTax Rate Taxes

Property 2 139-34-712-098 $225,000 $163,369 $388,369 3.2782% $2,914Property 1 139-34-712-099 $135,000 $74,094 $209,094 3.2782% $1,813Property 1 139-34-712-100 $40,000 $51,997 $91,997 3.2782% $973Property 1 139-34-712-101 $140,000 $83,226 $223,226 3.2782% $1,864Property 1 139-34-712-120 $180,000 $145,286 $325,286 3.2782% $2,776

Totals $720,000 $517,972 $1,237,972 3.2782% $10,340

Notes:

Sale History:

The subject has not sold in the last three years, according to public records.

Current Listing/Contract(s): Exposure Time

The subject is not currently listed for sale, or under contract.

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Land:

Land SummaryParcel ID Gross Land

Area (Acres)Gross Land

Area (Sq Ft)Usable Land

Area (Acres)Usable Land Area (Sq Ft)

Topography Shape

139-34-712-09 0.32 14,000 0.32 14,000 Level Roughly rectangular139-34-712-09 0.32 14,000 0.32 14,000 Level Roughly rectangular139-34-712-10 0.16 7,000 0.16 7,000 Level Roughly rectangular139-34-712-10 0.16 7,000 0.16 7,000 Level Roughly rectangular139-34-712-12 0.40 17,500 0.40 17,500 Level Roughly rectangularTotals 1.36 59,500 1.36 59,500

Notes:

Subject Property Location Subject Property Statistics

Address 1020 Lewis Ave, 325 S. 11th St, 321 S. 11th St, 317 S. 11th St, & 324 S. Maryland Pwky

Property Type Land

City Las Vegas Year Built -- State NV Size (SF) 0

Zip 89101 Metro Downtown Las Vegas MF

Submarket Las Vegas Latitude 36.1627173

Longitude -115.136563 Zoning:

C-1 Limited Commercial

Highest and Best Use of the Site:

Multifamily Residence

Type of Value: Market Value

VALUE INDICATIONS Sales Comparison Approach:

$4,400,000

Reconciled Value(s): As Is

Value Conclusion(s) $4,400,000

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Effective Date(s) November 20, 2018 Property Rights Fee Simple

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Definition of Market Value Market value means the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) Buyer and seller are typically motivated; (2) Both parties are well informed or well advised, and acting in what they consider their own best interests; (3) A reasonable time is allowed for exposure in the open market; (4) Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and (5) The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. Source: Code of Federal Regulations, CFR › Title 12 › Chapter I › Part 34 › Subpart C › Section 34.42

Definition of As Is Market Value As is market value is defined as, “The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal’s effective date.” Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015); also, Interagency Appraisal and Evaluation Guidelines, Federal Register, 75 FR 77449, December 10, 2010, page 77471

Definition of Property Rights Appraised Fee simple interest is defined as, “Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.” Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015) 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

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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: Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015)

Limiting Conditions and Assumptions Acceptance of and/or use of this report constitutes acceptance of the following limiting conditions and assumptions; these can only be modified by written documents executed by both parties. This appraisal is to be used only for the purpose stated herein. While distribution of this appraisal in its entirety is at the discretion of the client, individual sections shall not be distributed; this report is intended to be used in whole and not in part. No part of this appraisal, its value estimates or the identity of the firm or the appraiser(s) may be communicated to the public through advertising, public relations, media sales, or other media. All files, work papers and documents developed in connection with this assignment are the property of Real Estate Advisory LLC. . Information, estimates and opinions are verified where possible, but cannot be guaranteed. Plans provided are intended to assist the client in visualizing the property; no other use of these plans is intended or permitted. No hidden or unapparent conditions of the property, subsoil or structure, which would make the property more or less valuable, were discovered by the appraiser(s) or made known to the appraiser(s). No responsibility is assumed for such conditions or engineering necessary to discover them. Unless otherwise stated, this appraisal assumes there is no existence of hazardous materials or conditions, in any form, on or near the subject property. Unless otherwise stated in this report, the existence of hazardous substances, including without limitation asbestos, polychlorinated biphenyl, petroleum leakage, or agricultural chemicals, which may or may not be present on the property, was not called to the attention of the appraiser nor did the appraiser become aware of such during the appraiser’s inspection. The appraiser has no knowledge of the existence of such materials on or in the property unless otherwise stated. The appraiser, however, is not qualified to test for such substances. The presence of such hazardous substances may affect the value of the property. The value opinion developed herein is predicated on the assumption that no such hazardous substances exist on or in the property or in such proximity thereto,

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which would cause a loss in value. No responsibility is assumed for any such hazardous substances, nor for any expertise or knowledge required to discover them. Unless stated herein, the property is assumed to be outside of areas where flood hazard insurance is mandatory. Maps used by public and private agencies to determine these areas are limited with respect to accuracy. Due diligence has been exercised in interpreting these maps, but no responsibility is assumed for misinterpretation. Good title, free of liens, encumbrances and special assessments is assumed. No responsibility is assumed for matters of a legal nature. Necessary licenses, permits, consents, legislative or administrative authority from any local, state or Federal government or private entity are assumed to be in place or reasonably obtainable. It is assumed there are no zoning violations, encroachments, easements or other restrictions which would affect the subject property, unless otherwise stated. The appraiser(s) are not required to give testimony in Court in connection with this appraisal. If the appraisers are subpoenaed pursuant to a court order, the client agrees to pay the appraiser(s) Real Estate Advisory LLC. ’s regular per diem rate plus expenses. Appraisals are based on the data available at the time the assignment is completed. Amendments/modifications to appraisals based on new information made available after the appraisal was completed will be made, as soon as reasonably possible, for an additional fee. Americans with Disabilities Act (ADA) of 1990 A civil rights act passed by Congress guaranteeing individuals with disabilities equal opportunity in public accommodations, employment, transportation, government services, and telecommunications. Statutory deadlines become effective on various dates between 1990 and 1997. Real Estate Advisory LLC. has not made a determination regarding the subject’s ADA compliance or non-compliance. Non-compliance could have a negative impact on value, however this has not been considered or analyzed in this appraisal.

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Scope of Work According to the Uniform Standards of Professional Appraisal Practice, it is the appraiser’s responsibility to develop and report a scope of work that results in credible results that are appropriate for the appraisal problem and intended user(s). Therefore, the appraiser must identify and consider: ● the client and intended users; ● the intended use of the report; ● the type and definition of value; ● the effective date of value; ● assignment conditions; ● typical client expectations; and ● typical appraisal work by peers for similar assignments. This appraisal is prepared for Mr Daniel Riceberg, BDR Cascadia LLC. The intended use is for to assist the Client (Daniel Riceberg) and intended users in making a lending decision for two 15-story apartment hi-rises consists of approximate 250 units. SCOPE OF WORK Report Type: This is a Restricted Appraisal Report as defined by

Uniform Standards of Professional Appraisal Practice under Standards Rule 2-2(b). This format provides for only basic property identification, appraisal statements and value conclusion(s). The appraisal may only be used by the client for the intended use. The rationale for how the appraiser arrived at the opinions and conclusions set forth in the report may not be understood properly without additional information in the appraiser’s workfile.

Property Identification: The subject has been identified by the legal description and the assessors' parcel number.

Inspection: A complete interior and exterior inspection of the subject property has been made, and photographs taken.

Market Area and Analysis of Market Conditions:

A complete analysis of market conditions has been made. The appraiser maintains and has access to comprehensive databases for this market area and has reviewed the market for sales and listings relevant to

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this analysis.

Highest and Best Use Analysis:

A complete as vacant and as improved highest and best use analysis for the subject has been made. Physically possible, legally permissible and financially feasible uses were considered, and the maximally productive use was concluded.

Type of Value: Market Value Valuation Analyses

Cost Approach:

A cost approach was not applied as the subject has no building improvements.

Sales Comparison Approach:

A sales approach was applied as there is adequate data to develop a value estimate and this approach reflects market behavior for this property type.

Income Approach:

An income approach was not applied as the subject is an income producing property, however, the client has requested for an appraisal of the underlying land value only. In conclusion, the Income Approach was not developed for this report.

Hypothetical Conditions:

• The appraisal is based on the hypothetical condition. The appraisal is based on the “As Is” value of the underlying land value only per the request of the client.

Extraordinary Assumptions:

• No environmental (Phase I) or geotechnical reports were provided for review. I assume the site is to be free or any environmental hazards and that the land is suitable, from a geotechnical standpoint (soils), for the existing development.

Information Not Available: • None

Comments

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Market Area Analysis Market Area Location and Boundaries Clark County is located in the U.S. state of Nevada. As of the 2010 U.S. Census, the population was 1,951,269, with an estimated population of 2,204,079 in 2017. It is by far the most populous county in Nevada, accounting for nearly three-quarters of its residents–thus making Nevada one of the most centralized states in the nation. Las Vegas, the state’s most populous city, has been the county seat since the county’s establishment. The county was formed by the Nevada Legislature by splitting off a portion of Lincoln County on February 5, 1909, and came into existence on July 1, 1909.[4] The Las Vegas Valley, a 600 sq mi (1,600 km2) basin, includes Las Vegas as well as other major cities and communities such as North Las Vegas, Henderson, and the unincorporated community of Paradise. Much of the county was part of Pah-Ute County, Arizona Territory before Nevada became a state. The county was named for William Andrews Clark, a Montana copper magnate and U.S. Senator. Clark was largely responsible for the construction of the Los Angeles and Salt Lake Railroad through the area, a factor heavily contributing to the region's early development. Clark County is a major tourist destination, with 150,000 hotel rooms. The Las Vegas Strip, home to most of the hotel-casinos known to many around the world, is not within the City of Las Vegas city limits, but in unincorporated Paradise. It is, however, in the Las Vegas Valley. Clark County is coextensive with the Las Vegas–Paradise, NV Metropolitan Statistical Area, a metropolitan statistical area designated by the Office of Management and Budget and used by the United States Census Bureau and other agencies for statistical purposes.

Market Area and Property Characteristics Adjacent Counties

• Lincoln County – north • Mohave County, Arizona – east/Mountain Time Border • San Bernardino County, California – south • Inyo County, California – southwest • Nye County – west

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Geography According to the United States Census Bureau, the county has an area of 8,061 square miles (20,880 km2), of which 7,891 square miles (20,440 km2) is land and 169 square miles (440 km2) (2.1%) is water. The Colorado River forms the county's southeastern boundary, with Hoover Dam forming Lake Mead along much of its length. The lowest point in the state of Nevada is on the Colorado River just south of Laughlin in Clark County, where it flows out of Nevada into California and Arizona. By definition, Greater Las Vegas is a tectonic valley, surrounded by four mountain ranges, with nearby Mount Charleston being the highest elevation at 11,918 ft (3,633 m), located to the northwest. Other than the forests on Mount Charleston, the geography in Clark County is a desert. Creosote bushes are the main native vegetation, and the mountains are mostly rocky with little vegetation.

National Protected Areas

• Desert National Wildlife Refuge (part) • Humboldt-Toiyabe National Forest (part) • Lake Mead National Recreation Area (part) • Moapa Valley National Wildlife Refuge • Red Rock Canyon National Conservation Area • Sloan Canyon National Conservation Area • Spring Mountains National Recreation Area (part) • Toiyabe National Forest (part) • Tule Springs Fossil Beds National Monument(part) 20 official wilderness areas in Clark County are part of the National Wilderness Preservation System. Many of these are in, or partially in, one of the preceding protected areas, as shown below. Many are separate entities that are managed by the Bureau of Land Management (BLM):

• Arrow Canyon Wilderness (BLM) • Black Canyon Wilderness (Nevada) (Lake Mead NRA) • Bridge Canyon Wilderness (Lake Mead NRA) • Eldorado Wilderness (Lake Mead NRA / BLM) • Ireteba Peaks Wilderness (Lake Mead NRA / BLM) • Jimbilnan Wilderness (Lake Mead NRA) • Jumbo Springs Wilderness (BLM) • La Madre Mountain Wilderness (BLM / Toiyabe NF) • Lime Canyon Wilderness (BLM)

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• Meadow Valley Range Wilderness (BLM) mostly in Lincoln County, NV • Mormon Mountains Wilderness (BLM) mostly in Lincoln County, NV • Mount Charleston Wilderness (Toiyabe NF / BLM) • Muddy Mountains Wilderness (BLM / Lake Mead NRA) • Nellis Wash Wilderness (Lake Mead NRA) • North McCullough Wilderness (part of Sloan Canyon NCA, which is managed by

BLM) • Pinto Valley Wilderness (Lake Mead NRA) • Rainbow Mountain Wilderness (BLM / Toiyabe NF) • South McCullough Wilderness (BLM) • Spirit Mountain Wilderness (Lake Mead NRA / BLM) • Wee Thump Joshua Tree Wilderness(BLM)

Population Trends 2010 census As of the 2010 United States Census, there were 1,951,269 people, 715,365 households, and 467,916 families residing in the county. The population density was 247.3 inhabitants per square mile (95.5/km2). There were 840,343 housing units at an average density of 106.5 per square mile (41.1/km2). Of the 715,365 households, 34.9% had children under the age of 18 living with them, 45.0% were married couples living together, 13.5% had a female householder with no husband present, 34.6% were non-families, and 25.3% of all households were made up of individuals. The average household size was 2.70 and the average family size was 3.26. The median age was 35.5 years. The median income for a household in the county was $56,258 and the median income for a family was $63,888. Males had a median income of $43,693 versus $35,324 for females. The per capita income for the county was $27,422. About 8.7% of families and 11.7% of the population were below the poverty line, including 16.9% of those under age 18 and 7.6% of those age 65 or over.

Transportation Major highways

• Interstate 11

• Interstate 15

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• Interstate 215

• Interstate 515

• U.S. Route 93

• U.S. Route 95 •

U.S. Route 95 Business (Las Vegas)

• State Route 146

• State Route 147

• State Route 156

• State Route 157

• State Route 158

• State Route 159

• State Route 160

• State Route 161

• State Route 163

• State Route 164

• State Route 165

• State Route 168

• State Route 169

• State Route 170

• State Route 171

• State Route 172

• State Route 562

• State Route 564

• State Route 573

• State Route 574

• State Route 578

• State Route 579

• State Route 582

• State Route 589

• State Route 592

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• State Route 593

• State Route 594

• State Route 595

• State Route 596

• State Route 599

• State Route 602

• State Route 604

• State Route 610

• State Route 612

• County Route 215 • Summerlin Parkway

Education The Clark County School District serves all of Clark County with 228 elementary schools, 59 middle schools, and 54 high schools being the fifth largest in the country. Current enrollment of students as of 2013 was 312,892. Colleges serving the area are University of Nevada, Las Vegas (UNLV), College of Southern Nevada, and Nevada State College.

Parks and recreation

• Sunset Park, at Sunset Road and Eastern Avenue in Las Vegas

Gaming areas The State of Nevada divides the state into several gaming districts. The reporting districts affecting Clark County are:

• Boulder Strip: This region includes 33 casinos on Boulder Highway. Casinos within the Henderson city limits are included as well, such as Green Valley Ranch, Sunset Station, Fiesta, Eldorado, and Jokers Wild.

• Downtown: There are 19 casinos in this reporting area. • LV Strip: This region is composed of all the casinos on Las Vegas Boulevard,

from The Stratosphere at the north end to Mandalay Bay on the south end. Also

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included are resorts near this area, such as The Rio, South Point, and the Hard Rock; and McCarran Airport.

• North Las Vegas: This region has 11 casinos and include the Fiesta Rancho, Texas Station, Jerry's Nugget, and the Santa Fe Station.

• Laughlin: The casinos in Laughlin. • Mesquite: The casinos in Mesquite. • Balance of County: There are 66 casinos in this category that includes casinos

at Lake Las Vegas, Jean, Primm, the Railroad Pass and Hacienda casinos, along with other casinos that don't fit any other category such as Arizona Charlie's Decatur, Gold Coast, The Orleans, The Palms, Suncoast, Rampart, and Red Rock Resort Spa and Casino

Environmental factors Clark County has a diverse desert flora and fauna, including higher elevation mountain areas, the desert floor and the Colorado River/Lake Mead ecosystems. Variations in diurnal temperature as well as seasonal swings in temperature create demanding adaptation elements on the species of this county. Population expansion, especially since 1970, has placed additional pressure on species in the area. Correspondingly air quality levels prior to the 1960s were in a favorable range, but the proliferation of automobiles with the human population expansion created circumstances where some Federal Air Quality Standards began to be violated in the 1980s. To plan for the wave of development forecast by 1980, Clark County embarked on a regional Environmental Impact Assessment funded by a Federal Section 208 program, with Sedway Cooke conducting the planning work and Earth Metrics performing environmental analysis. This endeavor projected population growth, land use changes and environmental impacts. To prevent the loss of federal funds due to unacceptable dust levels in the Las Vegas valley, in 2003 the Nevada Air Quality Management division (under direction of Clark County officials) created the massive "Don't Be a Dusthole" campaign. The campaign successfully raised awareness of dust pollution in the Las Vegas valley, quantifiably reducing pollutants and preserving ongoing federal funding. Located in Apex is the Apex Landfill which at 2,200 acres (890 ha) is the largest landfill in the United States. Republic Services owns and operates the landfill.

Earthquake hazards

Nevada is the third most seismically active state in the U.S. (after Alaska and California); it has been estimated by the United States Geological Survey (USGS) that over the next

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50 years Clark County has a 10–20% chance of a M6.0 or greater earthquake occurring within 50 km (31 mi) of Las Vegas.

Economy

The county is home to many gaming related companies. Station Casinos is headquartered in unincorporated Clark County, along with Golden Entertainment, American Casino & Entertainment Properties, Bally Technologies, Cannery Casino Resorts, The Majestic Star Casino, LLC, Ameristar Casinos, Archon Corporation, Boyd Gaming, Caesars Entertainment, Las Vegas Sands, MGM Resorts International, Wynn Resorts, DBT Online Inc., Gambler's Book Shop / GBC Press, Millennium Management Group, Navegante Group, Pinnacle Entertainment and Tropicana Entertainment

Tourism

The Las Vegas Convention and Visitors Authority post the historical numbers of visitors and hotel rooms in Clark County. The era of massive modern casino resorts began with the opening of the Mirage in November 1989.

Major Employers According to data collected by the Research and Analysis Bureau of the Nevada Department of Employment, Training and Rehabilitation Clark County's largest employers, both public and private employers, as reported in the fourth quarter of 2012. 30,000 to 39,999 Employees

• Clark County School District 5,000 to 10,000 Employees

• Clark County Municipal Government • Wynn Las Vegas • Bellagio • MGM Grand Las Vegas • Aria Resort & Casino • Mandalay Bay Resort and Casino • Caesars Palace • Las Vegas Metropolitan Police Department • University of Nevada, Las Vegas

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2,500 to 4,999

• The Venetian Las Vegas • The Mirage • The Cosmopolitan of Las Vegas • University Medical Center of Southern Nevada • The Palazzo • Encore Las Vegas • Flamingo Las Vegas • Southwest Airlines • City of Las Vegas Municipal Government • Paris Las Vegas

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Location Map

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Las Vegas Area Analysis Las Vegas (/lɑːs ˈveɪɡəs/, Spanish for "The Meadows"; Spanish: [las ˈβeɣas]), officially the City of Las Vegas and often known simply as Vegas, is the 28th-most populated city in the United States, the most populated city in the state of Nevada, and the county seat of Clark County. The city anchors the Las Vegas Valley metropolitan area and is the largest city within the greater Mojave Desert. Las Vegas is an internationally renowned major resort city, known primarily for its gambling, shopping, fine dining, entertainment, and nightlife. The Las Vegas Valley as a whole serves as the leading financial, commercial, and cultural center for Nevada. The city bills itself as The Entertainment Capital of the World, and is famous for its mega casino–hotels and associated activities. It is a top three destination in the United States for business conventions and a global leader in the hospitality industry, claiming more AAA Five Diamond hotels than any other city in the world. Today, Las Vegas annually ranks as one of the world's most visited tourist destinations. The city's tolerance for numerous forms of adult entertainment earned it the title of Sin City, and has made Las Vegas a popular setting for literature, films, television programs, and music videos. Las Vegas was settled in 1905 and officially incorporated in 1911. At the close of the 20th century, it was the most populated American city founded within that century (a similar distinction earned by Chicago in the 1800s). Population growth has accelerated since the 1960s, and between 1990 and 2000 the population nearly doubled, increasing by 85.2%. Rapid growth has continued into the 21st century, and according to a 2018 estimate, the population is 648,224 with a regional population of 2,227,053. "Las Vegas" is often used to describe areas beyond official city limits—especially the areas on and near the Las Vegas Strip, which is actually located within the unincorporated communities of Paradise and Winchester.

Geography Las Vegas is situated within Clark County in a basin on the floor of the Mojave Desert and is surrounded by mountain ranges on all sides. Much of the landscape is rocky and arid with desert vegetation and wildlife. It can be subjected to torrential flash floods, although much has been done to mitigate the effects of flash floods through improved drainage systems. The peaks surrounding Las Vegas reach elevations of over 10,000 feet (3,000 m), and act as barriers to the strong flow of moisture from the surrounding area. The elevation is approximately 2,030 ft (620 m) above sea level. According to the United States Census

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Bureau, the city has a total area of 135.86 sq mi (351.9 km2), of which 135.81 sq mi (351.7 km2) is land and 0.05 sq mi (0.13 km2) (0.03%) is water. Nevada is the third most seismically active state in the U.S. (after Alaska and California); it has been estimated by the United States Geological Survey (USGS) that over the next 50 years there is a 10–20% chance of a M6.0 or greater earthquake occurring within 50 km (31 mi) of Las Vegas. Within the city there are many lawns, trees and other greenery. Due to water resource issues, there has been a movement to encourage xeriscapes. Another part of conservation efforts is scheduled watering days for residential landscaping. A U.S. Environmental Protection Agency grant in 2008 funded a program that analyzed and forecast growth and environmental impacts through the year 2019.

Population Trends

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As of the census of 2010, there were 583,756 people, 211,689 households, and 117,538 families residing in the city. The population density was 4,222.5/sq mi (1,630.3/km2). There are 190,724 housing units at an average density of 1,683.3/sq mi (649.9/km2).

Income

The median income for a household in the city was $53,000 and the median income for a family was $58,465. Males had a median income of $35,511 versus $27,554 for females. The per capita income for the city was $22,060. About 6.6% of families and 8.9% of the population were below the poverty line, including 5.4% of those under age 18 and 6.3% of those age 65 or over.

Economy The primary drivers of the Las Vegas economy are tourism, gaming and conventions, which in turn feed the retail and restaurant industries.

Welcome to Fabulous Las Vegas Sign, welcoming tourists to the city Tourism

The major attractions in Las Vegas are the casinos and the hotels, although in recent years other new attractions have begun to emerge. Most casinos in the downtown area are located on Fremont Street, with The Stratosphere being one of the exceptions. Fremont East, adjacent to the Fremont Street Experience, was granted variances to allow bars to be closer together, similar to the Gaslamp Quarter of San Diego, the goal being to attract a different demographic than the Strip attracts.

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Downtown casinos

The Golden Gate Hotel and Casino, located downtown along the Fremont Street Experience, is the oldest continuously operating hotel and casino in Las Vegas; it opened in 1906 as the Hotel Nevada. The year 1931 marked the opening of the Northern Club (now the La Bayou).The most notable of the early casinos may have been Binion's Horseshoe(now Binion's Gambling Hall and Hotel) while it was run by Benny Binion. Boyd Gaming has a major presence downtown operating the California Hotel & Casino, Fremont Hotel & Casino and the Main Street Casino. Other casinos operations include the Four Queens Hotel & Casino, Las Vegas Club (currently undergoing renovation) and Mermaid's Casino, which are also located downtown along the Fremont Street Experience. Downtown casinos that have undergone major renovations and revitalization in recent years include the Golden Nugget Hotel & Casino, The D Las Vegas Hotel Casino (formerly Fitzgerald's), Downtown Grand (formerly Lady Luck), El Cortez Hotel & Casino and The Plaza Hotel & Casino. Las Vegas Strip

The center of the gambling and entertainment industry, however, is located on the Las Vegas Strip, outside the city limits in the surrounding unincorporated communities of Paradise and Winchester in Clark County. The largest and most notable casinos and buildings are located there.

Development When The Mirage opened in 1989, it started a trend of major resort development on the Las Vegas Strip outside of the city. This resulted in a drop in tourism in the downtown area, but many recent projects have increased the number of visitors to downtown. An effort has been made by city officials to diversify the economy by attracting health-related, high-tech and other commercial interests. No state tax for individuals or corporations, as well as a lack of other forms of business-related taxes, have aided the success of these efforts. The Fremont Street Experience was built in an effort to draw tourists back to the area, and has been popular since its startup in 1995. The city purchased 61 acres (25 ha) of property from the Union Pacific Railroad in 1995 with the goal of creating a better draw for more people to the downtown area. In 2004, Las Vegas Mayor Oscar Goodman announced plans for Symphony Park, which could include a mixture of offerings, such as residential space and office buildings.

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Already operating in Symphony Park is the Cleveland Clinic Lou Ruvo Center for Brain Health(opened in 2010), The Smith Center for the Performing Arts (opened in 2012) and the DISCOVERY Children's Museum (opened in 2013). On land across from Symphony Park, the World Market Center Las Vegas opened in 2005. It currently encompasses three large buildings with a total of 5.1 million square feet. Trade shows for the furniture and furnishing industries are held there semiannually. Also located nearby is the Las Vegas North Premium Outlets. A second expansion was completed in May 2015, with the mall currently offering 175 stores. A new Las Vegas City Hall opened in February 2013 on downtown's Main Street. The former City Hall building is now occupied by the corporate headquarters for the major online retailer, Zappos.com, which opened downtown in 2013. Zappos CEO Tony Hsieh has taken an interest in the urban area and has contributed $350 million toward a revitalization effort called the Downtown Project. Projects funded include Las Vegas's first independent bookstore, The Writer's Block.

Other industries A number of new industries have moved to Las Vegas in recent decades. Online shoe retailer Zappos.com (now an Amazon subsidiary) was founded in San Francisco but by 2013 had moved its headquarters to downtown Las Vegas. Allegiant Air, a low-cost carrier launched in 1997, had its first hub at McCarran International Airport and is headquartered in nearby Summerlin.

Culture The city is home to several museums, including the Neon Museum (the location for many of the historical signs from Las Vegas's mid-20th century heyday), The Mob Museum, the Las Vegas Natural History Museum, the DISCOVERY Children's Museum, the Nevada State Museum and the Old Las Vegas Mormon State Historic Park. The city is home to an extensive Downtown Arts District, which hosts numerous galleries and events including the annual Las Vegas Film Festival. "First Friday" is a monthly celebration that includes arts, music, special presentations and food in a section of the city's downtown region called 18b, The Las Vegas Arts District. The festival extends into the Fremont East Entertainment District as well. The Thursday prior to First Friday is known in the arts district as "Preview Thursday." This evening event highlights new gallery exhibitions throughout the district. The Las Vegas Academy of International Studies, Performing and Visual Arts is a Grammy award-winning magnet school located in downtown Las Vegas.

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The Smith Center for the Performing Arts is situated downtown in Symphony Park. The world-class performing arts center hosts Broadway shows and other major touring attractions, as well as orchestral, opera, ballet, choir, jazz, and dance performances. Las Vegas had earned the moniker Gambling Capital of the World, as the city currently has the largest strip of land-based casinos in the world.

Sports The Las Vegas Valley is the home of two major professional teams, the Vegas Golden Knights of the National Hockey League, an expansion team that began play in the 2017–18 NHL season out of T-Mobile Arena in nearby Paradise. In 2020, the Oakland Raiders of the National Football League will relocate to Las Vegas Stadium, which is currently under construction. In 2018, the Las Vegas Aces of the Women’s National Basketball Association played their inaugural season at the Mandalay Bay Events Center. There are two minor league sports teams that play in the city of Las Vegas. The Las Vegas 51s of the Pacific Coast League, the AAA farm club of the Oakland Athletics, although they will be moving to Las Vegas Ballpark nearby Summerlin in the 2019 season under a new name. The Las Vegas Lights FC of the United Soccer League, also an expansion team, began play out of Cashman Field in Downtown Las Vegas. In response to the original rumors of the eventual NHL expansion team in Las Vegas, ESPNwriter Scott Burnside noted several obstacles that would be faced by the city if it were to become a professional sports market, including the presence of legal sports betting, scheduling conflicts with the large number of residents who work nighttime and overnight shifts, and that the casinos would be unlikely to give away tickets to such events as a promotion, as they run contrary to a goal of encouraging patrons to remain in their facilities.

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Parks and recreation Las Vegas has 68 parks. The city owns the land for, but does not operate, four golf courses: Angel Park Golf Club, Desert Pines Golf Club, Durango Hills Golf Club, and the Las Vegas Municipal Golf Course. It is also responsible for 123 playgrounds, 23 softball fields, 10 football fields, 44 soccer fields, 10 dog parks, six community centers, four senior centers, 109 skates parks, six swimming pools, and more.

Education Primary and secondary schools Primary and secondary public education is provided by the Clark County School District, which is the fifth most populous school district in the nation. Students totaled 314,653 in grades K-12 for school year 2013–2014.

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Colleges and universities The College of Southern Nevada (the third largest community college in the United States by enrollment) is the main higher education facility in the city. Other institutions include the University of Nevada School of Medicine, with a campus in the city, and the for-profit private school Le Cordon Bleu College of Culinary Arts. Educational opportunities exist around the city; among them are the University of Nevada, Las Vegas and Nevada State College run by the Nevada System of Higher Education, Desert Research Institute, The International Academy of Design & Technology Las Vegas and Touro University Nevada.

Transportation RTC Transit is a public transportation system providing bus service throughout Las Vegas, Henderson, North Las Vegas and other areas of the valley. Inter-city bus service to and from Las Vegas is provided by Greyhound, BoltBus, Orange Belt Stages, Tufesa, and several smaller carriers. Amtrak trains have not served Las Vegas since the service via the Desert Wind was discontinued in 1997. Though no Amtrak trains have served Las Vegas since the Desert Wind was cancelled in 1997, Amtrak California operates Thruway Motorcoach dedicated service between the city and its passenger rail stations in Bakersfield, California, as well as Los Angeles Union Station via Barstow. A bus rapid-transit link in Las Vegas called the Strip & Downtown Express (previously ACE Gold Line) with limited stops and frequent service was launched in March 2010, and connects downtown Las Vegas, the Strip and the Las Vegas Convention Center. In 2016, 77.1 percent of working Las Vegas residents (those living in the city, but not necessarily working in the city) commuted by driving alone. About 11 percent commuted via carpool, 3.9 percent used public transportation, and 1.4 percent walked. About 2.3 percent of Las Vegas commuters used all other forms of transportation, including taxi, bicycle, and motorcycle. About 4.3 of working Las Vegas residents worked at home. In 2015, 10.2 percent of city of Las Vegas households were without a car, which increased slightly to 10.5 percent in 2016. The national average was 8.7 percent in 2016. Las Vegas averaged 1.63 cars per household in 2016, compared to a national average of 1.8 per household. With some exceptions, including Las Vegas Boulevard, Boulder Highway (SR 582) and Rancho Drive (SR 599), the majority of surface streets in Las Vegas are laid out in a grid along Public Land Survey System section lines. Many are maintained by the Nevada Department of Transportation as state highways. The street numbering system is divided by the following streets:

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• Westcliff Drive, US 95 Expressway, Fremont Street and Charleston Boulevard divide the north–south block numbers from west to east.

• Las Vegas Boulevard divides the east–west streets from the Las Vegas Strip to near the Stratosphere, then Main Street becomes the dividing line from the Stratosphere to the North Las Vegas border, after which the Goldfield Street alignment divides east and west.

• On the east side of Las Vegas, block numbers between Charleston Boulevard and Washington Avenue are different along Nellis Boulevard, which is the eastern border of the city limits.

Interstates 15, 515, and US 95 lead out of the city in four directions. Two major freeways – Interstate 15 and Interstate 515/U.S. Route 95 – cross in downtown Las Vegas. I-15 connects Las Vegas to Los Angeles, and heads northeast to and beyond Salt Lake City. I-515 goes southeast to Henderson, beyond which US 93 continues over the Mike O'Callaghan–Pat Tillman Memorial Bridge towards Phoenix, Arizona. US 95 connects the city to northwestern Nevada, including Carson City and Reno. US 93 splits from I-15 northeast of Las Vegas and goes north through the eastern part of the state, serving Ely and Wells. US 95 heads south from US 93 near Henderson through far eastern California. A partial beltway has been built, consisting of Interstate 215 on the south and Clark County 215 on the west and north. Other radial routes include Blue Diamond Road (SR 160) to Pahrump and Lake Mead Boulevard (SR 147) to Lake Mead. East–west roads, north to south

• Ann Road

• Craig Road (SR 573)

• Cheyenne Avenue (SR 574) • Smoke Ranch Road

• Washington Avenue (SR 578) • Summerlin Parkway

• Bonanza Road (SR 579)

• Charleston Boulevard (SR 159)

• Sahara Avenue (SR 589) North–south roads, west to east

• Fort Apache Road • Durango Drive • Buffalo Drive

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• Rainbow Boulevard (SR 595)

• Jones Boulevard (SR 596) • Decatur Boulevard • Valley View Boulevard

• Rancho Drive • Maryland Parkway

• Eastern Avenue (SR 607) • Pecos Road

• Lamb Boulevard (SR 610)

• Nellis Boulevard (SR 612)

McCarran International Airport handles international and domestic flights into the Las Vegas Valley. The airport also serves private aircraft and freight/cargo flights. Most general aviation traffic uses the smaller North Las Vegas Airport and Henderson Executive Airport. The Union Pacific Railroad is the only Class I railroad providing rail freight service to the city. Until 1997, the Amtrak Desert Wind train service ran through Las Vegas using the Union Pacific Railroad tracks.

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Map of Las Vegas

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Multifamily Analysis

Summary The Las Vegas market’s outlook for continued recovery looks positive after initially lagging behind that of many other metros across the country. Both employment and population growth have been well above the national average over the past several years and show no signs of slowing in the near term. Median household income has begun to grow again and is expected to sustain that growth in the near term. Development has picked up over the past few years, specifically in southwest Las Vegas and Henderson, but has been quiet compared with the explosion of residential construction during the housing bubble. Transaction volume in 2018 has been solid following several years of increasing sales activity.

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Vacancy Las Vegas’s fundamentals continue to improve bolstered by sustained job and population growth. While the metro unemployment number sits slightly above the national average at about 5%, this is almost half of where unemployment was during the downturn. Increased employment has raised demand for housing, and apartments and rental homes remain the most affordable options. The metro’s homeownership rate peaked at 64% in 2007, and that rate is now close to 55%. As a result, the metro’s renter pool has grown substantially, with many former homeowners finding themselves renting apartments, due to Las Vegas having one of the highest foreclosure rates in the nation.

The recession was particularly destructive here, pushing vacancies above 10% for a short period. Time and an improving economy boosted apartment demand, and vacancies have compressed to around 5.7%. However, with rents rising and vacancies recovering further, development quickly resurfaced. More than 10,000 units have delivered since 2015, and thousands more are underway. Deliveries outpaced demand in 2017, leading to some vacancy expansion but healthy demand in 2018 has compressed the vacancy rate; however, further supply additions over the next few years are likely to put upward pressure on vacancies.

Single-family rentals continue to be a competitor for apartments. Institutional investors acquired numerous underwater single-family homes during the downturn and converted them into rentals. Demand for single-family rentals here largely comes from households displaced through foreclosure and young families unable or unwilling to buy a home.

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While the typical renter of a single-family home may often differ from that of a market-rate apartment, they are both drawn from the same rental pool.

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Rent Rent gains in Las Vegas have been solid since 2015, and average asking rents in the metro are $1,030/month, around 15% higher than their prerecession peak. Rent growth remains strong at around 7.4%, while remaining more than double Las Vegas’s historical annual average of around 2% and well above the national index at about 3%. Even with the influx of new units, 4 & 5 Star rent gains continue to be solid but trail gains for 3 Star properties where growth has exceed 5% each year since 2015.

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Construction Construction returned in 2014, and developer activity has continued to increase ever since. New projects have been concentrated along the 215 beltway corridor in higher-performing submarkets like Henderson, Summerlin/Spring Valley and Enterprise/South Paradise. These high-income communities continue to benefit from the Las Vegas economic resurgence, attracting residents through their reputation and amenities. New properties boast large units and top-notch amenities to compete for renters.

There are around 3,206 units under construction, and approximately 30% of those will be delivering to the Summerlin/Spring Valley and Henderson Submarkets. Over 3,000 units delivered in 2017, and nearly half of those units were located in the Summerlin/Spring Valley Submarket, which boasts the largest percentage of inventory among all Las Vegas submarkets. Development in the neighboring Enterprise/South Paradise submarket, located between Henderson and Summerlin/Spring Valley, had increased recently with more than 900 units underway.

Infill projects had been rarer in the metro earlier this cycle, but that has started to change lately. One submarket exemplifying this that has seen a recent increase in new construction is the Las Vegas Strip. After seeing very little development since 2010, there are now more than 800 units underway in the Strip Submarket.

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Sales Sales volume has picked up in the Las Vegas metro recently. In September, TruAmerica Multifamily acquired a 2-property portfolio from Acacia Capital Corporation for $77.2 million ($153,000/unit) at a reported 5.0% cap rate. The two properties were the 384-unit Crossing at Green Valley apartments in Henderson and the 120-unit Retreat apartments in Las Vegas. The Crossing was built in 1986 and the Retreat in 1996, and both properties were approximately 95% occupied at the time of sale. The buyer has indicated plans to renovate both properties. Also in September, Sunroad Enterprises acquired the 296-unit Townhomes at Horizon Ridge for $64.1 million ($216,500/unit) at a reported 4.9% cap rate. Security Properties sold the property, which was originally constructed in 2001 and approximately 97% occupied at the time of sale.

Earlier in the year, the Crystal Creek Apartments in Henderson was acquired in July for $77.75 million ($147,200/unit) by McDowell Properties from Acacia Capital Corporation. The property, built in 1990, was approximately 95% occupied when it was purchased by McDowell Properties at a reported 5.25% cap rate. Solis at Flamingo was purchased by the ConAm Group of Companies in June for $72 million ($137,000/unit). The 524-unit apartment community was sold by a joint venture between TruAmerica Multifamily and Investcorp International, which had originally acquired it in June 2015 for $50.5 million ($96,000/unit) with plans to spend $5.5 million on interior and exterior upgrades to the property.

One of the largest deals of the year so far was the April purchase of the Castile apartments in Henderson by TM Equities for $99.6 million ($200,000/unit). The developer, AZ-based Wolff Company, sold the 498-unit property, which was completed in 2017, at a reported 5.25% cap rate.

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Economy Las Vegas’s recovery continues, after getting off to a slow start, bolstered by healthy job and population growth. Annual job growth in the Las Vegas metro has averaged around 3% over the past five years, based on numbers from the U.S. Bureau of Labor Statistics. The Las Vegas metro has seen steady growth in the number of people moving to the area this cycle, and approximately two-thirds of the population growth has come from in-migration from other parts of the country.

While state and local officials are working to diversify the economy, the leisure and hospitality sector remains Las Vegas’ primary economic driver. With nearly one in three jobs based in the sector, the metro’s economic success is inherently tied to tourism. Visitor numbers from the Las Vegas Convention and Visitors Authority are looking strong, with the metro attracting more than 40 million each of the past three years, an all-time record. A strengthening national economy will certainly help Las Vegas’s cause as increased disposable income encourages even more tourists and attracts visitor dollars to the metro.

The construction industry has made a strong recovery recently after being hit hard by the collapse of the housing market during the recession. Annual employment growth in the construction sector over the past five years has averaged around 10%. However, the number of workers still remains at only approximately 60% of prerecession levels. The metro employed more than 110,000 construction workers, or about 12% of the overall employment base, in 2006; today, construction makes up around 6% of employment.

The construction sector is likely to see continued growth over the next few years, with a number of large projects currently under way in Las Vegas, most located proximate to the Strip. One is the Genting Group’s $4 billion Resorts World Las Vegas, with the initial phase estimated to include around 3,000 rooms and a 100,000-SF casino. That project alone is expected to add 30,000 constructions jobs. Two other large hotel projects are also

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slated to open in the next couple of years: The Drew Las Vegas (formerly Fontainebleau) with an estimated 4,000 rooms and Wynn Las Vegas’s Paradise Park with around 1,500 rooms.

One of the most significant projects in the metro is the new 65,000-seat indoor stadium for the Las Vegas Raiders that recently broke ground. The Raiders and Las Vegas Stadium Authority are partnering to build the stadium, which is estimated to open for the 2020 season. As of mid-2018, there are around 500 construction workers on site, but it is expected to eventually employ about 1,500 workers when the project hits its peak. The state-backed economic impact report on the stadium is estimating a total economic output of $620 million, as well as $35 million new tax dollars each year. Those projections are based on the stadium hosting 46 events per year and drawing approximately 450,000 new visitors. The report also estimates that the stadium would create an additional around 5,900 permanent jobs throughout the region.

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Submarket Multifamily Analysis

Summary The Downtown/Central Las Vegas Submarket mainly attracts renters looking for affordability and short commutes. The submarket’s abundance of older, lower-quality inventory helps keep rents low, although recent growth has been notable. New construction in this submarket has been minimal in the current cycle as developers focus on higher-end projects in southwest Las Vegas and Henderson. Lack of new product coupled with steady demand has led vacancies to compress significantly since the recession. This has attracted investor interest to the area, and transaction volume is off to a solid start in the first half of 2018 after a strong 2017.

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Vacancy Along with the Strip, Downtown/Central Las Vegas offers the lowest cost of living in the metro. While ongoing revitalization efforts could change that dynamic, demographics do not support strong demand for new product. Instead, renters generally choose the submarket for its affordability, bolstering demand for the abundance of old 1 & 2 and 3 Star inventory. With very little new development this cycle, vacancies, at 6.0%, are well below the historical average.

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Home values in Las Vegas were considerably impacted by the housing bust, and the market is still recovering. Las Vegas had one of the highest foreclosure rates in the nation and from 2010–15 the median home value in the market was reduced by about 20%. Even though the submarket has some of the most affordable homes in the metro, saving up for a 20% down payment could be difficult for many residents, because median household incomes tend to be low. This is evidenced by a homeownership rate that has declined from 64% in 2007 to around 50% today.

While the submarket is home to a substantial employment base, the majority of jobs cater to low-income workers. Those who work for one of the few prominent office-using employers—such as RSM, Fidelity National Title Insurance, or one of the law firms—typically commute from outside of the submarket. Residents of the submarket rely on the abundance of retail trade jobs, the eight hospitals located here, and the gaming industry. While Vegas’s economy continues to diversify, the leisure and hospitality sector still accounts for a large portion of employment in the metro, and many renters in Downtown/Central Las Vegas work in the gaming industry. This sector has continued to recover since it was hit hard by the recession, and it is expected to be one of the top-performing sectors of the economy in the near term.

Downtown Las Vegas is in the midst of a revitalization effort, known as the Downtown Project, launched in 2013 by Zappos CEO Tony Hsieh. Hsieh promised to provide $350 million to launch the program with the goal of reinventing downtown Las Vegas as the thriving urban area it once was by attracting new businesses, retailers, and residents. Fremont 9, the first 4 Star apartment community built here in close to a decade, recently delivered, and the performance of that asset will help gauge the prospects of Hsieh’s bet on the area.

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Rent The average asking rent in Downtown/Central Las Vegas is $840/month, a discount to the overall metro average. With the exception of the Strip, the submarket is home to the largest share of 1 & 2 Star units—as well as one of the oldest inventories—in the metro. However, thanks to lower-than-usual vacancies and the absence of new supply, rent growth increased over 5% annually from 2015-17 and continues to be strong at 6.70%. Rents have increased by more than 25% since rent growth turned positive in 2012.

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Construction New supply in Downtown/Central Las Vegas has been minimal this cycle. Developers have paid little attention to this submarket, as the unappealing demographics provide little incentive to build. Instead, they continue to pump supply into areas along the 215 Beltway, specifically in Henderson, Summerlin/Spring Valley, and Enterprise/South Paradise, where demand for new product has proven to be robust.

Construction in the submarket is limited with the recent completion of Fremont9. Fremont9, a 4 Star, 231-unit apartment project is being developed by The Wolff Co. of Scottsdale, AZ, working with the Downtown Project. The community boasts amenities such as a “hip resident lounge,” a resort-style pool, quartz countertops, and stainless steel appliances, along with 15,000 SF of ground-floor retail. Fremont9 is the first 4 Star property to deliver in the submarket in nearly a decade.

One of the only other properties in the pipeline is the 48-unit Charleston Apartments with expected completion in late 2018. Though new construction has been limited, there have been several renovation projects on 1 & 2 and 3 Star properties in the submarket. Among them is Highland Villas, a 44-unit property purchased in August 2016 by Signature Management that was formerly a senior complex, which was repositioned to attract all rent types.

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Sales Transaction volume in the Downtown/Central Las Vegas Submarket has been moderate in 2018 after a strong two years preceding it. One of the notable deals of 2018 so far was the acquisition of Cornerstone Crossing Apartments, for $49.75 million ($91,000/unit), by joint venture between Henley USA and Tower 16 Capital Partners from Prime Finance Partners. The buyer indicated plans to renovate the 540-unit property originally constructed in 1984. Another significant trade was the August sale of the Falcon Landing Apartments for $27.3 million ($137,700/unit). The 198-unit property was built in 2008. Earlier in the year in March,City Center apartments was sold by Highridge Costa Housing Partners to Veneto Capital Management for $18.9 million ($63,000/unit). The 300-unit property, built in 2003, was sold as part of a four-property portfolio and has a mix of affordable and market-rate units.

One of the largest portfolio sales of 2017 was the September acquisition by Bridge Investment Group Partners of the eight-property Oasis Portfolio. The assets were purchased from The Wolff Co. for $129 million ($73,000/unit) at a reported 6.3% cap rate. The portfolio contained over 1,700 units spread across the Downtown/Central Las Vegas and North Las Vegas/Sunrise Manor Submarkets. Approximately $54.9 million of the portfolio is located in the Downtown/Central Las Vegas Submarket spread across four properties with a combined 698 units. One of the largest individual deals of 2017 involved the Entrata Di Paradiso apartments. The 4 Star, 480-unit complex sold in November 2017 for $55 million ($114,000/unit) and was approximately 93% occupied at the time of sale. CWCapital Asset Management sold the property in an auction sale at a reported 5.2% cap rate to Kennedy Wilson Properties.

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Property Description The subject property comprises five lots, all are rectangular-shaped land parcels, identified as Property 1 APNs 139-34-712-120, 139-34-712-099, 139-34-712-101, 139-34-712-100 & Property 2 APN 139-34-712-098, with a total land area of 1.36 acres, based on public record. The subject parcels are occupied with multifamily residential buildings which will be razed for a project of approximately 250 unit within a Highrise apartment towers.

Land SummaryParcel ID Gross Land

Area (Acres)Gross Land

Area (Sq Ft)Usable Land

Area (Acres)Usable Land Area (Sq Ft)

Topography Shape

139-34-712-09 0.32 14,000 0.32 14,000 Level Roughly rectangular139-34-712-09 0.32 14,000 0.32 14,000 Level Roughly rectangular139-34-712-10 0.16 7,000 0.16 7,000 Level Roughly rectangular139-34-712-10 0.16 7,000 0.16 7,000 Level Roughly rectangular139-34-712-12 0.40 17,500 0.40 17,500 Level Roughly rectangularTotals 1.36 59,500 1.36 59,500

Notes:

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SITE 1 Location: Average

Current Use of the Property:

Multifamily Residence

Site Size: Total: 0.32 acres; 14,000 square feet Usable: 0.32 acres; 14,000 square feet

Shape: The site is roughly rectangular.

Frontage/Access:

The subject property has Average access with frontage as follows: • Lewis Ave: 140 feet • Eleventh St: 100 feet

Visibility: Average

Topography: Level

Soil Conditions: The soil conditions observed at the subject appear to be typical of the region and adequate to support development.

Utilities:

Electricity: The site is served by public electricity. Sewer: City sewer Water: City water Natural Gas: City gas Adequacy: The subject's utilities are typical and adequate for the market area.

Site Improvements: • Halogen Street Lights • Concrete Curbs and Sidewalks

Flood Zone: The subject is located in an area mapped by the Federal

Emergency Management Agency (FEMA). The subject is located in FEMA flood zone X, which is not classified as a flood hazard area.

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FEMA Map Number: 325276 - 32003C2170F FEMA Map Date: November 16, 2011

Wetlands/Watershed: No wetlands were observed during our site inspection.

Environmental Issues:

There are no known adverse environmental conditions on the subject site. Please reference Limiting Conditions and Assumptions.

Encumbrance / Easements:

There no known adverse encumbrances or easements. Please reference Limiting Conditions and Assumptions.

Site Comments: The site has average and typical utility.

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SITE 2

Location: Average

Current Use of the Property:

Multifamily Residence

Site Size: Total: 0.32 acres; 14,000 square feet Usable: 0.32 acres; 14,000 square feet

Shape: The site is roughly rectangular.

Frontage/Access:

The subject property has Average access with frontage as follows: • Eleventh St: 100 feet • Lewis: 140 feet

Visibility: Average

Topography: Level

Soil Conditions: The soil conditions observed at the subject appear to be typical of the region and adequate to support development.

Utilities:

Electricity: The site is served by public electricity. Sewer: City sewer Water: City water Natural Gas: City gas Adequacy: The subject's utilities are typical and adequate for the market area.

Site Improvements: • Halogen Street Lights • Concrete Curbs and Sidewalks

Flood Zone: The subject is located in an area mapped by the Federal

Emergency Management Agency (FEMA). The subject is located in FEMA flood zone X, which is not classified as a flood hazard area.

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FEMA Map Number: 325276 - 32003C21170F FEMA Map Date: November 16, 2011

Wetlands/Watershed: No wetlands were observed during our site inspection.

Earthquake Zone:

The subject is not in an earthquake zone.

Environmental Issues:

There are no known adverse environmental conditions on the subject site. Please reference Limiting Conditions and Assumptions.

Encumbrance / Easements:

There no known adverse encumbrances or easements. Please reference Limiting Conditions and Assumptions.

Site Comments: The site has average and typical utility.

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SITE 3

Location: Average

Current Use of the Property:

Multifamily Residence

Site Size: Total: 0.16 acres; 7,000 square feet Usable: 0.16 acres; 7,000 square feet

Shape: The site is roughly rectangular.

Frontage/Access:

The subject property has Average access with frontage as follows: • Eleventh St: 50 feet

The site has an average depth of 140 feet. It is not a corner lot.

Visibility: Average

Topography: Level

Soil Conditions: The soil conditions observed at the subject appear to be typical of the region and adequate to support development.

Utilities:

Electricity: The site is served by public electricity. Sewer: City sewer Water: City water Natural Gas: City gas Adequacy: The subject's utilities are typical and adequate for the market area.

Site Improvements: • Halogen Street Lights • Concrete Curbs and Sidewalks

Flood Zone: The subject is located in an area mapped by the Federal

Emergency Management Agency (FEMA). The subject is located in FEMA flood zone X, which is not classified as a flood hazard area. FEMA Map Number: 325276 - 32003C21170F

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FEMA Map Date: November 16, 2011

Wetlands/Watershed: No wetlands were observed during our site inspection.

Earthquake Zone:

The subject is not in an earthquake zone.

Environmental Issues:

There are no known adverse environmental conditions on the subject site. Please reference Limiting Conditions and Assumptions.

Encumbrance / Easements:

There no known adverse encumbrances or easements. Please reference Limiting Conditions and Assumptions.

Site Comments: The site has average and typical utility.

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SITE 4 Location: Average

Current Use of the Property:

Multifamily Residence

Site Size: Total: 0.16 acres; 7,000 square feet Usable: 0.16 acres; 7,000 square feet

Shape: The site is roughly rectangular.

Frontage/Access:

The subject property has Average access with frontage as follows: • Eleventh St: 50 feet The site has an average depth of 140 feet. It is not a corner lot.

Visibility: Average

Topography: Level

Soil Conditions: The soil conditions observed at the subject appear to be typical of the region and adequate to support development.

Utilities:

Electricity: The site is served by public electricity. Sewer: City sewer Water: City water Natural Gas: City gas Adequacy: The subject's utilities are typical and adequate for the market area.

Site Improvements: • Halogen Street Lights • Concrete Curbs and Sidewalks

Flood Zone: The subject is located in an area mapped by the Federal

Emergency Management Agency (FEMA). The subject is located in FEMA flood zone X, which is not classified as a flood hazard area. FEMA Map Number: 325276 - 32003C21170F

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FEMA Map Date: November 16, 2011

Wetlands/Watershed: No wetlands were observed during our site inspection.

Earthquake Zone:

The subject is not in an earthquake zone.

Environmental Issues:

There are no known adverse environmental conditions on the subject site. Please reference Limiting Conditions and Assumptions.

Encumbrance / Easements:

There no known adverse encumbrances or easements. Please reference Limiting Conditions and Assumptions.

Site Comments: The site has average and typical utility.

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SITE 5 Location: Average

Current Use of the Property:

Multifamily Residence

Site Size: Total: 0.40 acres; 17,500 square feet Usable: 0.40 acres; 17,500 square feet

Shape: The site is roughly rectangular.

Frontage/Access:

The subject property has Average access with frontage as follows: • Maryland St: 125 feet • Lewis Ave: 140 feet

Visibility: Average

Topography: Level

Soil Conditions: The soil conditions observed at the subject appear to be typical of the region and adequate to support development.

Utilities:

Electricity: The site is served by public electricity. Sewer: City sewer Water: City water Natural Gas: City gas Adequacy: The subject's utilities are typical and adequate for the market area.

Site Improvements: • Halogen Street Lights • Concrete Curbs and Sidewalks

Flood Zone: The subject is located in an area mapped by the Federal Emergency Management Agency (FEMA). The subject is located in FEMA flood zone X, which is not classified as a flood hazard area.

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FEMA Map Number: 325276 - 32003C21170F FEMA Map Date: November 16, 2011

Wetlands/Watershed: No wetlands were observed during our site inspection.

Earthquake Zone:

The subject is not in an earthquake zone.

Environmental Issues:

There are no known adverse environmental conditions on the subject site. Please reference Limiting Conditions and Assumptions.

Encumbrance / Easements:

There no known adverse encumbrances or easements. Please reference Limiting Conditions and Assumptions.

Site Comments: The site has average and typical utility.

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Site Map

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Aerial Map

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Americans with Disabilities Act Please reference the Limiting Conditions and Assumptions section of this report on page 12.

Hazardous Substances Please reference the Limiting Conditions and Assumptions section of this report on page 12.

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Subject Photographs

Property 1

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Property 1

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Property 2

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Property 2

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Property 2

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Lewis Avenue

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Eleventh Street

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Assessment and Taxes Taxing Authority

Clark County

Assessment Year

2018

Real Estate Assessment and TaxesTax ID Land Improvements Total

AssessmentTax Rate Taxes

Property 2 139-34-712-098 $225,000 $163,369 $388,369 3.2782% $2,914Property 1 139-34-712-099 $135,000 $74,094 $209,094 3.2782% $1,813Property 1 139-34-712-100 $40,000 $51,997 $91,997 3.2782% $973Property 1 139-34-712-101 $140,000 $83,226 $223,226 3.2782% $1,864Property 1 139-34-712-120 $180,000 $145,286 $325,286 3.2782% $2,776

Totals $720,000 $517,972 $1,237,972 3.2782% $10,340

Notes:

Assessment Analysis We have analyzed the assessment and corresponding taxation of competitive properties in the marketplace as a test of reasonableness compared to the subject’s current assessment and taxation.

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Zoning LAND USE CONTROLS

Zoning Code

C-1 Limited Commercial

Zoning Description

The C-1 District is intended to provide most retail shopping and personal services, and may be appropriate for mixed use developments. This district should be located on the periphery of residential neighborhoods and should be confined to the intersections of primary and secondary thoroughfares along major retail corridors. The C-1 District is consistent with the Service Commercial and the Neighborhood Center categories of the General Plan.

Zoning Density/FAR

0.00

Actual Density of Use

NA

Current Use Legally Conforming

--

Zoning Change Likely

--

Zoning Change Description

--

Set Back Distance

20'

Side Yard Distance

10'

Zoning Comments

See Tables Below

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Highest and Best Use Highest and best use may be defined as the reasonably probable and legal use of vacant land or improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value.

1. Legally Permissible: What uses are permitted by zoning and other legal restrictions?

2. Physically Possible: To what use is the site physically adaptable?

3. Financially Feasible: Which possible and permissible use will produce any net

return to the owner of the site?

4. Maximally Productive. Among the feasible uses which use will produce the highest net return, (i.e., the highest present worth)?

Highest and Best Use of the Site The highest and best use of the site, as vacant, is for Multifamily Residence. Proposed to build Highrise Apartments

Highest and Best Use as Improved The highest and best use of the subject as improved Multifamily Residence. --

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Valuation Methodology Three basic approaches may be used to arrive at an estimate of market value. They are:

1. The Cost Approach 2. The Income Approach 3. The Sales Comparison Approach

Cost Approach The Cost Approach is summarized as follows:

Cost New - Depreciation + Land Value = Value

Income Approach The Income Approach converts the anticipated flow of future benefits (income) to a present value estimate through a capitalization and or a discounting process.

Sales Comparison Approach The Sales Comparison Approach compares sales of similar properties with the subject property. Each comparable sale is adjusted for its inferior or superior characteristics. The values derived from the adjusted comparable sales form a range of value for the subject. By process of correlation and analysis, a final indicated value is derived.

Final Reconciliation The appraisal process concludes with the Final Reconciliation of the values derived from the approaches applied for a single estimate of market value. Different properties require different means of analysis and lend themselves to one approach over the others.

Analyses Applied A cost analysis was considered and was not developed because A cost approach was not applied as the subject has no building improvements. A sales comparison analysis was considered and was developed because A sales approach was applied as there is adequate data to develop a value estimate and this approach reflects market behavior for this property type.

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An income analysis was considered and was not developed because the subject is an income producing property, however, the client has requested for an appraisal of the underlying land value only. In conclusion, the Income Approach was not developed for this report.

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Sales Comparison Approach – Land Valuation The Sales Comparison Approach is based on the premise that a buyer would pay no more for a specific property than the cost of obtaining a property with the same quality, utility, and perceived benefits of ownership. It is based on the principles of supply and demand, balance, substitution and externalities. The following steps describe the applied process of the Sales Comparison Approach.

• The market in which the subject property competes is investigated; comparable sales, contracts for sale and current offerings are reviewed.

• The most pertinent data is further analyzed and the quality of the transaction is

determined.

• The most meaningful unit of value for the subject property is determined.

• Each comparable sale is analyzed and where appropriate, adjusted to equate with the subject property.

• The value indication of each comparable sale is analyzed and the data reconciled

for a final indication of value via the Sales Comparison Approach.

Land Comparables I have researched five comparables for this analysis; these are documented on the following pages followed by a location map and analysis grid. All sales have been researched through numerous sources, inspected and verified by a party to the transaction.

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Comp Address Date Acres Land SFComp City Price Price Per Acre Price Per Land Subject 1020 Lewis Ave,

325 S. 11th St, 321

Subject Las Vegas -- -- --

1 6 Coolidge Avenue 10/5/2018 20909

1 Las Vegas $2,847,000 $5,931,250 $136.16

2 501 S 1st Street 10/4/2018 42253

2 Las Vegas $4,200,000 $4,329,897 $99.40

3 701 S Las Vegas Boulevard

7/12/2018 13983

3 Las Vegas $995,000 $3,099,592 $71.16

4 211 N 7th Street 3/24/2017 14375

4 Las Vegas $1,000,000 $3,030,303 $69.57

5 3301 W Sahara Avenue

1/28/2016 10019

5 Las Vegas $900,000 $3,913,043 $89.83

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ID 4294 Date 10/5/2018Address 6 Coolidge Avenue Price $2,847,000City Las Vegas Price per Acre $5,931,250State NV Financing ConventionalTax ID 139-33-811-028, 139-34- Property Rights Fee SimpleGrantor 1025 Main St LLC Days on Market MarketGrantee ZLife at 1025 Main St LLC Verification Source Public Records, BuyerLegal Description --

Acres 0.5 Topography LevelLand SF 20,909 Zoning C-MRoad Frontage -- Flood Zone None KnownShape -- Encumbrance or None KnownUtilities All available Environmental Issues None Known

This is the sale of a level finished lot with all utilities available; curbs gutters and sidewalks.

Transaction

Site

Comments

Land Comparable 1

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ID 4295 Date 10/4/2018Address 501 S 1st Street Price $4,200,000City Las Vegas Price per Acre $4,329,897State NV Financing ConventionalTax ID 139-34-311-023... Property Rights Fee SimpleGrantor Oakwood Plaza LLC & Days on Market NAGrantee K&J Las Vegas Endeavor Verification Source CoStar, Listing BrokerLegal Description In files

Acres 1.0 Topography LevelLand SF 42,253 Zoning C2Road Frontage -- Flood Zone None KnownShape -- Encumbrance or None KnownUtilities All available Environmental Issues None Known

A level graded lot with all utilities available. Curbs, gutters and sidewalks.Comments

Site

Transaction

Land Comparable 2

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ID 4296 Date 7/12/2018Address 701 S Las Vegas Boulevard Price $995,000City Las Vegas Price per Acre $3,099,592State NV Financing ConventionalTax ID 139-34-410-180 Property Rights Fee SimpleGrantor 518 Garces Avenue Ltd Days on Market NAGrantee Harrison Properties Ltd Verification Source CoStar, Public RecordsLegal Description In file

Acres 0.3 Topography LevelLand SF 13,983 Zoning C2Road Frontage -- Flood Zone None KnownShape -- Encumbrance or None KnownUtilities -- Environmental Issues None Known

Comments

Transaction

Land Comparable 3

A level site with all utilities available. Curbs, gutters and sidewalks.

Site

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ID 4298 Date 3/24/2017Address 211 N 7th Street Price $1,000,000City Las Vegas Price per Acre $3,030,303State NV Financing All cashTax ID 139-34-512-028 Property Rights Fee SimpleGrantor J Henry Properties LV LLC Days on Market 102Grantee IKE DTLV Real Estate No. Verification Source Public Records, Listing Legal Description In file Broker - Thomas Dean

Acres 0.3 Topography LevelLand SF 14,375 Zoning C2Road Frontage -- Flood Zone None KnownShape -- Encumbrance or None KnownUtilities All available Environmental Issues None Known

Transaction

Land Comparable 4

Site

CommentsA level site with all utilities available.

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ID 4299 Date 1/28/2016Address 3301 W Sahara Avenue Price $900,000City Las Vegas Price per Acre $3,913,043State NV Financing All cashTax ID 162-08-103-003 Property Rights Fee SimpleGrantor Sahara Rye Pure Days on Market 325Grantee Jlsc LLC Verification Source Public RecordsLegal Description In file Listing Broker - L Tabeek

Acres 0.2 Topography LevelLand SF 10,019 Zoning C1Road Frontage -- Flood Zone NAShape -- Encumbrance or NAUtilities All to site Environmental Issues NA

Transaction

This is a previously developed lot with all utilities available. The planned use was for retail fast-food use. Property was developed with a Starbucks Coffee drive-through cafe.

Comments

Site

Land Comparable 5

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Comparables Map

Analysis Grid The above sales have been analyzed and compared with the subject property. I have considered adjustments in the areas of:

Property Rights Sold Financing Conditions of Sale

Market Trends Location Physical Characteristics

On the following page is a sales comparison grid displaying the subject property, the comparables and the adjustments applied.

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AddressCity

StateDate

PriceLand SF

Land SF Unit Price

Property Rights Fee Simple 0.0% Fee Simple 0.0% Fee Simple 0.0% Fee Simple 0.0% Fee Simple 0.0%Financing Conventional 0.0% Conventional 0.0% Conventional 0.0% All cash 0.0% All cash 0.0%

Conditions of Sale Market 0.0% Market 0.0% Market 0.0% Market 0.0% Market 0.0%

Market Trends Through 12/15/2018 5.0%

Location% Adjustment$ Adjustment

Acres% Adjustment$ Adjustment

Topography% Adjustment$ Adjustment

Shape% Adjustment$ Adjustment

Utilities% Adjustment$ Adjustment

Zoning% Adjustment$ Adjustment

Net AdjustmentsGross Adjustments

-20.0%$82.71$75.27

-10.0%40.0%

-10.0%45.0% 40.0%

-25.0%$75.60 $68.12Adjusted Land SF Unit Price $65.39

Adjusted Land SF Unit Price $137.46Superior

$99.40Adjusted Land SF Unit Price $136.161.0%

Superior-5%

$103.39

-15% 15%

8.8%2.1%

1020 Lewis Ave, 325

NV

$71.16Cash

Las Vegas Las VegasNVNV

$71.1613,983.00

Transaction Adjustments

20,909.00

Las Vegas Las Vegas701 S Las Vegas 211 N 7th Street

All available

0%$0.00

All available

0%

0%

C1

-$7.57-$7.27

$0.00

-10%C2

$0.00

C2

-45.0%

-$10.04-10%-15%

C2

All available

C-1 Limited C-M

-$20.62

1.36

0%$0.00

Roughly rectangular

Level

0.48-15%

Similar

Land Analysis Grid Comp 1

59,500.00$0.00 $136.16

NV

6 Coolidge Avenue 501 S 1st StreetLas Vegas

42,253.00

Comp 2

$99.40

Comp 4 Comp 5Comp 3

$0.000%

$0.00

Similar

0%

0%

0%

$0.00

Similar

-15%

7/12/2018$2,847,000

$10.90

Level

-$20.6215%

$72.66

-15%

$995,000

NV

$0.00

Inferior

0%

Level

$0.00

-$20.62

All available

0%

All available0%

1.0%$100.36

0.97

$0.000%

-$15.05

3/24/2017

0%

1/28/2016$900,000

3301 W Sahara Las Vegas

$89.83

NV

15.1%

Level

$0.00

$0.00

Similar Similar

$0.00

All available

$89.83$69.57

0%$0.00

-10%

0%

0.23

$0.00

Level

0.32

-$11.35

Level

$0.00

-$10.90

0%

$0.000%

$69.5714,375.00

ConventionalFee Simple

$1,000,000--10/4/20181/21/2015 10/5/2018$4,200,000

25.0%

-15%

$75.69Superior

-15%

-$5.17

20.0%

$11.35

0.33

Inferior

-$15.51

10,019.00

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Comparable Land Sale Adjustments

Property Rights All of the comparable sales were of Fee Simple interests and therefore, no adjustments were considered necessary for property rights.

Financing This adjustment takes into consideration financial factors surrounding a transaction that would affect the purchase price. The most common example is for seller-carried financing that is favorable to the buyer. All the sales were cash equivalent to the seller with no significant advantageous financing for the buyer and therefore no adjustment was made in this category.

Conditions of Sale This adjustment reflects the motivations of the buyer and seller that resulted in the transaction price being different than market value. For example, if a real estate broker purchases a property and reduces the price by five percent instead of taking a real estate commission, the condition of sale adjustment would reflect these circumstances. All of the comparable sales shared similar conditions and no adjustments were made in this category.

Economic Trends This adjustment takes into consideration any change in value that is a result of changing market conditions. As markets improve, real estate values tend to increase, and as they deteriorate, they have a tendency to decrease. Imbalances in supply and demand will also influence the market value of properties. This adjustment reflects the trend in real estate values for retail / commercial properties in the time frame exhibited by the sales and the effective date of value. Property values have been increasing at a rapid pace in Clark County. Although the price growth has been unusually high over the last few years, it is not reasonable to believe that this growth rate will continue over the long term. While the overall trend in property values has been steeply upward, I estimate a more reasonable growth rate of 5% annually should be applied to comparables that have occurred within the last few years.

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Location The location adjustment is based on the neighborhood influence and location influences of visibility and access. Location factors that can affect value include proximity to transportation, employment, and other community services as well as the overall appeal of surrounding properties. It also considers the overall visibility of the site from surrounding streets as well as site's ingress and/or egress. Appropriate adjustments were made to the comparables as shown in the land analysis grid.

Acres Since smaller sites typically sell at a higher price per square foot appropriate adjustments were made for the size of each comparable.

Topography The subject is basically level and therefore, it is assumed that no significant loss in usable land will occur in the future development. The comparables are all basically level and at street grade with no significant adjustments required in this category.

Shape All of the Comparables are basically rectangular or slightly irregular and no adjustments were required for any loss in functional utility due to shape.

Utilities Like the subject, all the comparables are either partially serviced by, or within close proximity to, adequate public utilities and no adjustments were required in the category.

Zoning & Other Physical Characteristics In addition to the categories above, several other important physical characteristics of the subject and comparable properties have been considered. These categories include the zoning, flood hazards, existing entitlements, site improvements, density (in units per acre) and other holding costs. Properties in superior locations will typically have more rapid absorption and therefore, they will also have superior (lower) holding costs for taxes, profit and other miscellaneous marketing expenses.

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Sales Comparison Approach Conclusion – Land Valuation

Number of Comparables: 5 % Δ-6%-39%-21%

$89.83 -16%$89.83 $1,000,000.00 land sf

High:$65.39

Average: $73.42

Land Value Ranges & Reconciled Value

Low:$82.71

Unadjusted Adjusted$69.57

Four Million Four Hundred Thousand Dollars

Subject Size:$75.00

Reconciled Final Value:$4,462,50059,500.00

Reconciled Value/Unit Value:

Indicated Value:$4,400,000

$136.16$93.22

Median: $75.27

All of the value indications have been considered, and in the final analysis, the most recent comparables #1 and #2, have been given most weight in arriving at my final reconciled per land sf value of $75.00.

Final Reconciliation The process of reconciliation involves the analysis of each approach to value. The quality of data applied, the significance of each approach as it relates to market behavior and defensibility of each approach are considered and weighed. Finally, each is considered separately and comparatively with each other.

Value Indication Sales Comparison Approach – Land Value: $4,400,000

Sales Comparison Approach The data quality, quantity and relevance of the approach was considered to be adequate for the analysis of the subject’s current market value.

Value Conclusion Based on the data and analyses developed in this appraisal, I have reconciled to the following value conclusion(s), as of November 20, 2018, subject to the Limiting Conditions and Assumptions of this appraisal. Reconciled Value: Premise: As Is

Interest: Fee Simple Value Conclusion: $4,400,000 Four Million Four Hundred Thousand Dollars

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Certification Statement I certify that, to the best of my knowledge and belief: The statements of fact contained in this report are true and correct.

The reported analyses, opinions and conclusions are limited only by the reported

assumptions and limiting conditions, and are my personal, impartial, and unbiased professional analyses, opinions and conclusions.

I have no present or prospective future interest in the property that is the subject of this report, and have no personal interest with respect to the parties involved.

I have no bias with respect to the property that is the subject of this report, or to the parties involved with this assignment.

My engagement in this assignment was not contingent upon developing or reporting predetermined results.

My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.

My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP).

No one provided significant real property appraisal assistance to the person signing this certification.

I certify sufficient competence to appraise this property through education and experience, in addition to the internal resources of the appraisal firm.

The appraisers have not performed any prior services regarding the subject within the previous three years of the appraisal date.

Tim Thibodeaux has made an exterior inspection of the subject property.

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Tim Thibodeaux, CGA Nevada -A.0207394-CG

Expiration date: July 31, 2020

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Addenda

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Resume

TIM THIBODEAUX

State of California - Certified General Real Estate Appraiser License Number AG009087 (Expires 01/05/2021)

State of Washington – Certified General Real Estate Appraiser License Number 1102335 (Expires 01/05/2021)

State of New York - Certified General Real Estate Appraiser

License Number 46000049757 (Expires 08/30/2019)

State of Nevada – Certified General Real Estate Appraiser License A.0207394-CG (7/31/2020)

State of Texas – Certified General Real Estate Appraiser

License TX 1380631 (08/31/2020)

State of Georgia – Certified General Real Property Appraiser License 376417 (1/31/2019)

California Real Estate Broker License 01764592 (Expires

09/24/2022)

Email- tim@realestateadvisory.com

Office 177 Riverside Ave Ste A #1883

Newport Beach, CA 92663

7250 Auburn Blvd #188 Citrus Heights, CA 95610

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Commercial Appraiser since 1994 Residential Appraiser since 1991

FHA/HUD Approved Appraiser

Master Builders Association - Member Cell Phone 714 271-9427

Office 310 997-2908

Employment

Independent Real Estate Appraiser 1991 to Present Real Estate Broker Triple Diamond Group 2006 to Present Real Estate Broker Royal Realty 2012 to Present Senior Appraiser- Integra Realty Resources 4/12 to 12/14

Certifications and Affiliations

California Certified General Appraiser AG009087 California Real Estate Broker 01764592 HUD Approved Appraiser California

Education

California State University Long Beach 1986 B.S. Real Estate Finance California State University Long Beach 1984 B.A. Political Science California State University Dominguez Hills 1987 6 units M.S. Quality Assurance

Scope of Experience

Multi-Family Units Apartments Manufacture Homes Office Buildings Commercial Buildings Vacant Land Planned Unit Developments Desk & Field Reviews Retail Strip Centers Mixed Use Proposed Construction Retail Buildings Contractor’s Yard Vehicle Related Properties Cold Storage Units

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Industrial Buildings Retrospective Appraisals Condominiums Bankruptcy Court Appraisals Dated of Death Appraisals Storage Units Shopping Centers Churches Gas Stations Boarding Homes Proposed Future Value Bars Divorce Litigation Single Family Residences Tax Appeals Bowling Centers Attorney Service Appraisals Expert Witness Storefront Retail Manufacture Buildings Restaurants Bldg Nightclubs Employee Relocation Appraisals Estate Planning Waterfront Properties New Construction (plans & specs) 2-4 Units PMI Removal FHA Appraisals Foreclosures Strip Centers Warehouses Buildings Loss Mitigation

Specialized Real Estate Appraisal Courses Professional Appraisal Courses Date Organization Advanced Sales and Cost Approaches 2010 Appraisal Institute Residential Case Study 1993 Appraisal Institute Basic Capitalization 1993 Appraisal Institute Appraisal Procedures 1993 Appraisal Institute Standard of Professional Practice 1993 Appraisal Institute Real Estate Law 1984-1986 CSULB Appraisal Principles 1984-1986 CSULB Manufactured Housing Appraisal 2004 Lincoln Graduate School

Continued Education Professional Appraisal Courses Date Organization

Vineyard Valuation 2018 2018 Appraisal Institute Supporting Your Adjustments 2018 McKissock USPAP 2018 McKissock Valuation of Conservation Easements 2018 American Society of Farm Managers & Rural Appraisers Laws and Regulations for CA Appraisers 2016 McKissock USPAP 2016 McKissock Dirty Dozen 2016 McKissock Supervisor -Trainee Course for CA 2016 McKissock Laws for Nevada Appraisers 2016 McKissock CREL Examination Heads Up for Bank Collateral2015 Society of Chief Appraisers

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Risk Managers Residential Appraising For Banks 2015 Society of Chief Appraisers USPAP 2015 Appraisal Institute Completing Today’s FHA Appraisals 2014 U.S. Department of Housing Residential & Commercial Valuation of Solar 2014 Appraisal Institute USPAP 2012 Appraisal Institute Federal & State Laws & Regulations 2012 Real Estate Trainers USPAP Hypothetical Conditions and 2012 Appraisal Institute Extraordinary Assumptions OREA Update and Enforcement Issues 2010 Appraisal Institute National USPAP Update Course 2010/2012 Appraisal Institute Completing Today’s FHA Appraisals 2010 U.S. Department of Housing Advanced Sales and Cost Approaches 2010 Appraisal Institute Business Practices and Ethics 2009 Appraisal Institute Verification of Data 2008 Appraisal Institute Appraisal of Residential Property for Foreclosure & Preforeclosure 2008 Appraisal Institute Building Transferable Skillsets 2008 Appraiser Training National USPAP Update Course 2008 Appraisal Institute Stats & Graphs Appraisal 2008 Appraisal Institute How Residential & Gen. Appraisers Can Prosper in the Future 2008 Appraisal Institute Appraising in a Declining or Changing Market 2007 Appraisal Institute Liability Management for Residential Appraisers 2007 Appraisal Institute USPAP Update Seminar 2006 Acheson Courses Complete the New Fannie URAR Form 2005 Tomonelli & Associates Paperless Office 2004 A la Mode Forming Filling 2004 A la Mode Appraisal Principles & Techniques 2004 Real Estate Trainers National USPAP Update 2004 Valuation 2004 The Future of the Appraisal Business 2004 Valuation 2004 AVMs and AVMs Application Guidelines 2004 Valuation 2004 Liability and the Appraiser 2004 Valuation 2004 Diversifying Your Appraisal Practice 2004 Valuation 2004 National USPAP Course 2002 Real Estate Trainers Appraisal Principles & Techniques 2002 Real Estate Trainers Fair Housing 2002 N/A Capitalization & Cash Flow 2000 Real Estate Trainers AVM 2000 McKissock Data System FHA 2000 McKissock Date System The Appraiser as an Expert Witness 2000 Appraisal Institute

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R/E Appraisal Fundamentals II 1996 Real Estate Trainers Litigation and Expert Witness 1996 Appraisal Institute FHA 203K 1996 Acheson Courses Reviewing Residential Reports 1996 Jim Morgan & Associates USPAP Update Seminar 1996 Appraisal Institute Federal & State Laws & Regulations 1996 Appraisal Institute HUD/FHA Policies & Procedures 1995 Jim Morgan & Associates Real Estate Appraiser #101 1991 Premier Schools, Inc.

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Glossary This glossary contains the definitions of common words and phrases, used throughout the appraisal industry, as applied within this document. Please refer to the publications listed in the Works Cited section below for more information. Works Cited: Appraisal Institute. The Appraisal of Real Estate. 14th ed. Chicago: Appraisal

Institute, 2013. Print. Appraisal Institute. The Dictionary of Real Estate Appraisal. 6th ed. 2015. Print.

Band of Investment A technique in which the capitalization rates attributable to components of an investment are weighted and combined to derive a weighted-average rate attributable to the total investment (i.e., debt and equity, land and improvements). (Dictionary, 6th Edition) Common Area 1. The total area within a property that

is not designed for sale or rental but is available for common use by all owners, tenants, or their invitees, e.g., parking and its appurtenances, malls, sidewalks, landscaped areas, recreation areas, public toilets, truck and service facilities.

2. In a shopping center, the walkways and areas onto which the stores face and which conduct the flow of customer traffic. (ICSC) (Dictionary, 6th Edition)

Common Area Maintenance (CAM) 1. The expense of operating and

maintaining common areas; may or

may not include management charges and usually does not include capital expenditures on tenant improvements or other improvements to the property. • CAM can be a line-item expense

for a group of items that can include maintenance of the parking lot and landscaped areas and sometimes the exterior walls of the buildings.

• CAM can refer to all operating expenses.

• CAM can refer to the reimbursement by the tenant to the landlord for all expenses reimbursable under the lease. Sometimes reimbursements have what is called an administrative load. An example would be a 15% addition to total operating expenses, which are then prorated among tenants. The administrative load, also called an administrative and marketing fee, can be a substitute for or an addition to a management fee.

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2. The amount of money charged to tenants for their shares of maintaining a center’s common area. The charge that a tenant pays for shared services and facilities such as electricity, security, and maintenance of parking lots. Items charged to common area maintenance may include cleaning services, parking lot sweeping and maintenances, snow removal, security, and upkeep. (ICSC) (Dictionary, 6th Edition)

Debt Coverage Ratio (DCR) The ratio of net operating income to annual debt service (DCR = NOI/Im), which measures the relative ability of a property to meet its debt service out of net operating income; also called debt service coverage ratio (DSCR). A larger DCR indicates a greater ability for a property to withstand a downturn in revenue, providing an improved safety margin for a lender. (Dictionary, 6th Edition) Discount Rate A rate on return on capital used to convert future payments or receipts into present value; usually considered to be a synonym for yield rate. (Dictionary, 6th Edition) Effective Age The age of property that is based on the amount of observed deterioration and obsolescence it has sustained, which may be different from its chronological age. (Dictionary, 6th Edition)

Effective Date 1. The date on which the appraisal or

review opinion applies. (SVP) 2. In a lease document, the date upon

which the lease goes into effect. Exposure Time 1. The time a property remains on the

market. 2. The estimated length of time the

property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective estimate based on an analysis of past events assuming a competitive and open market. (Dictionary, 6th Edition)

External Obsolescence A type of depreciation; a diminution in value caused by negative externalities and generally incurable on the part of the owner, landlord, or tenant. The external influence may be either temporary or permanent (Dictionary, 6th Edition). Extraordinary Assumption An assumption, directly related to a specific assignment, as of the effective date of the assignment results, which, if found to be false, could alter the appraiser’s opinion or conclusion. Comment: Extraordinary assumptions presume as fact otherwise uncertain information about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions

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or trends; or about the integrity of data used in an analysis. (USPAP, 2016-2017 ed.) (Dictionary, 6th Edition) Fee Simple Estate Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. (Dictionary, 6th Edition) Functional Obsolescence The impairment of functional capacity of a property according to market tastes and standards. (Dictionary, 6th Edition) Functional Utility The ability of a property or building to be useful and to perform the function for which it is intended according to current market tastes and standards; the efficiency of a building’s use in terms of architectural style, design and layout, traffic patterns, and the size and type of rooms. (Dictionary, 6th Edition) Gross Building Area (GBA) Total floor area of a building, excluding unenclosed areas, measured from the exterior of the walls of the above grade area. (Dictionary, 6th Edition) Gross Leasable Area (GLA) Total floor area designed for the occupancy and exclusive use of tenants, including basements and mezzanines; measured from the center of joint partitioning to the outside wall surfaces. (Dictionary, 6th Edition)

Highest & Best Use The reasonably probable use of property that results in the highest value. The four criteria that the highest and best legal use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. (Dictionary, 6th Edition) Hypothetical Condition A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but it is used for the purpose of analysis. Comment: Hypothetical conditions are contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. (USPAP, 2016-2017 ed.) (Dictionary, 6th Edition) Leased Fee Interest The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the revisionary right when the lease expires. (Dictionary, 6th Edition) Market Area The geographic region from which a majority of demand comes in which the majority of competition is located. Depending on the market, a market area may be further subdivided into

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components such as primary, secondary, and tertiary market areas, or the competitive market area may be distinguished from the general market area. (Dictionary, 6th Edition) Market Rent The most probable rent that a property should bring in a competitive and open market reflecting the conditions and restrictions of a specified lease agreement, including the rental adjustment and reevaluation, permitted uses, use restrictions, expense obligations, term, concessions, renewal and purchase options, and tenant improvements (TIs). (Dictionary, 6th Edition) Market Value A type of value that is the major focus of most real property appraisal assignments. Both economic and legal definitions of market value have been developed and refined, such as the following: 1. The most widely accepted

components of market value are incorporated in the following definition: The most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after a reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgably, and for self-interest, and assuming that neither is under undue duress.

2. Market value is described, not defined, in the Uniform Standards of Professional Appraisal Practice (USPAP) as follows: A type of value, stated as an opinion, that presumes the transfer of a property (i.e., a right of ownership or a bundle of such rights), as of a certain date, under specific conditions set forth in the definition of the term identified by the appraiser as applicable in an appraisal. USPAP also requires that certain items be included in every appraisal report. Among these items, the following are directly related to the definition of market value: • Identification of the specific

property rights to be appraised. • Statement of the effective date of

the value opinion. • Specification as to whether cash,

terms equivalent to cash, or other precisely described financing terms are assumed as the basis of the appraisal.

• If the appraisal is conditioned upon financing or other terms, specification as to whether the financing or terms are at, below, or above market interest rates and/or contain unusual conditions or incentives. The terms of above—or below—market interest rates and/or other special incentives must be clearly set forth; their contribution to, or negative influence on, value must be described and estimated; and the market data supporting the

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opinion of value must be described and explained.

3. The following definition of market value is used by agencies that regulate federally insured financial institutions in the United States: The most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and the seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: • Buyer and seller are typically

motivated; • Both parties are well informed or

well advised, and acting in what they consider their best interests;

• A reasonable time is allowed for exposure in the open market;

• Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and

• The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

(12 C.F.R. Part 34.42(g); 55 Federal Register 34696, August 24, 1990, as amended at 57 Federal Register 12202, April 9, 1992; 59 Federal Register 29499, June 7, 1994)

4. The International Valuation Standards Council defines market value for the purpose of international standards as follows: The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgably, prudently and without compulsion. (IVS)

5. The Uniform Standards for Federal Land Acquisitions defines market value as follows: Market value is the amount in cash, or on terms reasonably equivalent to cash, for which in all probability the property would have sold on the effective date for the appraisal, after a reasonable exposure time on the open competitive market, from a willing and reasonably knowledgeable buyer, with neither acting under any compulsion to buy or sell, giving due consideration to all available economic uses of the property at the time of the appraisal. (Uniform Standards for Federal Land Acquisitions) (Dictionary, 6th Edition)

Marketing Time An opinion of the amount of time it might take to sell a real or personal property interest at the concluded market value level during the period immediately after the effective date of the appraisal. Marketing time differs from exposure time, which is always presumed to precede the effective date of

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an appraisal. (Advisory Opinion 7 of the Standards Board of The Appraisal Foundation and Statement on Appraisal Standards No. 6, “Reasonable Exposure Time in Real Property and Personal Property Market Value Opinions” address the determination of reasonable exposure and marketing time). (Dictionary, 6th Edition) Net Operating Income (NOI) The actual or anticipated net income that remains after all operating expenses are deducted from effective gross income but before mortgage debt service and book depreciation are deducted. Note: This definition mirrors the convention used in corporate finance and business valuation for EBITDA (earnings before interest taxes, depreciation, and amortization) (Dictionary, 6th Edition) Obsolescence One cause of depreciation; an impairment of desirability and usefulness caused by new inventions, changes in design, improved processes for production, or external factors that make a property less desirable and

valuable for a continued use; may be either functional or external. (Dictionary, 6th Edition) Parking Ratio A ratio of parking area or parking spaces to an economic or physical unit of comparison. Minimum required parking ratios of various land uses are often stated in zoning ordinances. (Dictionary, 6th Edition) Rentable Area For office buildings, the tenant’s pro rata portion of the entire office floor, excluding elements of the building that penetrate through the floor to the areas below. The rentable area of a floor is computed by measuring to the inside finished surface of the dominant portion of the permanent building walls, excluding any major vertical penetrations of the floor. Alternatively, the amount of space on which the rent is based; calculated according to local practice. (Dictionary, 6th Edition)

Replacement Cost The estimated cost to construct, at current prices as of the effective appraisal date, a substitute for the building being appraised, using modern materials and current standards, design, and layout. (Dictionary, 6th Edition) Scope of Work The type and extent of research and analyses in an appraisal or appraisal

review assignment. (USPAP, 2016-2017 ed.) Stabilized Occupancy An expression of the average or typical occupancy that would be expected for a property over a specified projection period or over its economic life. (Dictionary, 6th Edition) Tenant Improvements (TIs)

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1. Fixed improvements to the land or structures installed and paid for use by a lessee.

2. The original installation of finished tenant space in a construction project; subject to periodic change for succeeding tenants. (Dictionary, 6th Edition)

Vacancy and Collection Loss A deduction from potential gross income (PGI) made to reflect income reductions due to vacancies, tenant turnover, and non-payment of rent; also called vacancy and credit loss or vacancy and contingency loss. (Dictionary, 6th Edition)