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Home My WebLink AboutIndustrial-Commercial Use,Twin Falls, 25-2759, Appraisal_RE McKinlay & Klundt Appraisal Company (Bus) (208) 734-5522 P.O. Box 5698 (Fax) (208) 734-9755 Twin Falls, Idaho 83303 AN APPRAISAL REPORT OF Twin Falls Fire Station#3 LOCATED AT 929 Washington Street South Twin Falls,Idaho 83301 CLIENT City of Twin Falls .O. Box 5698 McKinlay & Klundt Appraisal Twin Falls dahho83303 Company (Bus) (208) 734-5522 (Fax) (208) 734-9755 March 18, 2025 City of Twin Falls Attn: Mitch Humble,Deputy City Manager 203 Main Avenue East Twin Falls,Idaho 83301 Re: Fire Station#3 929 Washington Street South Twin Falls,Idaho 83301 Dear Mr. Mitch Humble, At your request,we have appraised a real property interest for the above real estate. Our objective was to form one or more opinions about the market value for a 100%ownership interest in the subject property's leased fee estate assuming no liens or encumbrances other than normal covenants and restrictions of record. This appraisal contains one individual parcel that contains a total of 1.02+/-acres or 44,431+/-square feet. The subject parcel is located on the south side of Orchard Drive and the east side of Washington Avenue in Twin Falls,Idaho. The subject property is improved with a general-purpose commercial building that contains 3,084+/- square feet and was built in approximately 1974. It is currently vacant as it was occupied by the Twin Falls Fire Department when it was originally built until a new station was built. More physical attributes of the property appraised are presented later in the Subject section of this report. This valuation contains analyses, opinions, and conclusions along with market data and reasoning appropriate for the scope of work detailed later herein. It was prepared solely for the intended use and intended user(s) explicitly identified in the attached report. Unauthorized users do so at their own risk. The appraisal is communicated in the attached document,which conforms to the version of the Uniform Standards of Professional Appraisal Practice (USPAP)in effect on this report's preparation date of March 18,2025. This letter is not an appraisal report hence it must not be removed from the attached 146-page document. If this letter is disjoined from the attached appraisal report,then the value opinions set forth in this letter are invalid because the analyses, opinions, and conclusions cannot be properly understood. In general,valuation of the subject property involves no atypical issues. All value opinions are affected by all the information,extraordinary assumptions,hypotheses,general limiting conditions, facts, descriptions,and disclosures stated in the attached appraisal report. After careful consideration of all factors pertaining to and influencing value,the data and analysis thereof firmly supports the following final value opinion(s) for the subject property as of February 21,2025: $535,000 Market Value"As Is" Thank you for your business. Let us know how we may further serve you. LW d L W4 ,,Lgw1 Dave McKinlay Travis Klundt Certified General Appraiser-71 Certified General Appraiser-2212 McKinlay&Klundt Appraisal Co. McKinlay&Klundt Appraisal Co. License Expiration Date: 04/08/25 License Expiration Date: 01/13/26 Table of Contents Overview.......................................................................................................6 SalientInformation........................................................................................................6 NoteworthyIssues .........................................................................................................6 Scopeof Work..............................................................................................7 Scopeof Work...............................................................................................................7 Introduction.............................................................................................................. 7 Assignment Elements................................................................................................ 7 Relevant Characteristics..........................................................................................9 Extent of Services Provided....................................................................................10 Other Intended Use Considerations.......................................................................10 Miscellaneous Matters............................................................................................10 AppraisalDevelopment..........................................................................................11 Concept Explanations............................................................................................. 13 Scope of Work Limitation...........................................................................................14 Report Reliance&Use Restrictions............................................................................14 Scope of Work Exclusion- Insurable Value ...............................................................15 Extraordinary Assumptions&Disclosures..................................................................16 Hypothetical Conditions..............................................................................................17 Personal Property &Intangibles..................................................................................17 Definition of Market Value .........................................................................................18 Definition of Real Property Estates.............................................................................19 Non-Disclosure State...................................................................................................21 Assemblage..................................................................................................................21 Contingent and Limiting Conditions...........................................................................22 Disclosures..................................................................................................29 Professional Standards.................................................................................................29 Competency.................................................................................................................29 AreaData ...................................................................................................30 RegionalMap ..............................................................................................................30 RegionalData..............................................................................................................31 IdahoStatistics.............................................................................................................64 MacroMarket Data......................................................................................................78 AreaDiscussion......................................................................................................85 SubjectProperty........................................................................................87 Identification of the Property.......................................................................................87 LegalDescription.........................................................................................................87 AerialPlat Map............................................................................................................88 BuildingSketches........................................................................................................89 SaleHistory.................................................................................................................98 FloodHazard...............................................................................................................98 RealEstate Taxes.........................................................................................................98 Zoning..........................................................................................................................98 EnvironmentalRisks....................................................................................................99 SubjectDescriptions..................................................................................................100 SubjectSite................................................................................................................100 Descriptions of Existing.......................................................................................100 Analyses & Conclusions..........................................................................101 ValueIntroduction.....................................................................................................101 RealEstate Cycles.....................................................................................................102 Highestand Best Use.................................................................................................103 CostApproach...........................................................................................................107 Sales Comparison Approach......................................................................................108 Introduction..........................................................................................................108 Sale1....................................................................................................................109 Sale2....................................................................................................................110 Sale3....................................................................................................................111 Sale4....................................................................................................................112 Sale5....................................................................................................................113 Sale6....................................................................................................................114 Sale7....................................................................................................................115 Summary of Improved Sales.................................................................................116 SalesLocation Map..............................................................................................117 Adjustment Grid `As Is"......................................................................................118 Analysis& Conclusions `As Is............................................................................119 ValueIndication...................................................................................................121 IncomeApproach.......................................................................................................122 Introduction..........................................................................................................122 Market& Contract Rent-A Comparison............................................................122 RentalData...........................................................................................................122 Lease1..................................................................................................................123 Lease2..................................................................................................................123 Lease3..................................................................................................................124 Lease4..................................................................................................................124 Lease5..................................................................................................................125 Rental Data Location Map...................................................................................126 Summary of Lease Comparables..........................................................................127 Conclusion of Market Rate and Potential Gross Income.....................................127 Expense Commentary...........................................................................................128 Capitalization.......................................................................................................129 Mortgage-Equity Technique.................................................................................130 UnderwritingMethod...........................................................................................131 InvestorSurveys....................................................................................................133 MarketExtraction.................................................................................................134 Capitalization Rate Selection...............................................................................135 Income Operating Statement `As Is"...................................................................136 ValueIndication...................................................................................................136 Reconciliation............................................................................................................13 7 Exposure&Marketing Time.....................................................................................138 Certification...............................................................................................................13 9 Addenda....................................................................................................141 DigitalImages............................................................................................................141 Technical Qualifications............................................................................................142 EngagementLetter.....................................................................................................145 CopyrightProtection..................................................................................................146 Endof Report.............................................................................................................146 Overview • • Salient Information Property Type Commercial Building Real Estate Appraised 929 Washington Street South Twin Falls,Idaho 83301 County Twin Falls Estate Valued 100% of the Fee Simple Client City of Twin Falls Client File Number 25-2759 Most Likely Buyer Owner-User/Passive Investor Effective Value Date February 21,2025 (point in time that the value applies) Report Date March 18,2025 (date the report is transmitted to client) Cost Approach Not Applicable Value Indication(s) `As Is" Sales Comparison $540,000 Income Approach $530,000 Final Value Conclusion(s) $535,000 "As Is" Noteworthy Issues This appraisal contains one individual parcel that contains a total of 1.02+/-acres or 44,431+/-square feet. The subject parcel is located on the south side of Orchard Drive and the east side of Washington Avenue in Twin Falls,Idaho. The subject property is improved with a general-purpose commercial building that contains 3,084+/- square feet and was built in approximately 1974. It is currently occupied by the Twin Falls Fire Department. More physical attributes of the property appraised are presented later in the Subject section of this report. No atypical factors significantly affect value. The real estate appraised is generally typical for this type property in this locale. 25-2759 McKinlay & Klundt Appraisal Company Page 6 0 Scope of Work • • • Scope of Work Introduction The Uniform Standards of Professional Appraisal Practice(USPAP)defines scope of work as"the type and extent of research and analysis in an assignment". Scope of work includes,but is not limited to: ➢ the extent to which the property is identified; ➢ the extent to which tangible property is observed; ➢ the type and extent of data researched; and ➢ the type and extent of analyses applied to arrive at opinions or conclusions. Assignment Elements The purpose of this assignment(the problem to be solved)is to form one or more opinions about value. This purpose necessitates identification of seven assignment elements listed below. 1. Client Information Client's Name ** Mr.Mitch Humble, City Manager Client's Company Name City of Twin Falls Appraiser(s)Engaged By The Client's Agent Client's Interest In Property Appraised Onwership 2. Other Intended Users None Noted 3. Intended Use Of Report (To aid) Decisions By Ownership 4. Value Opinion(s)Developed Market value Standard/Definition Of Value Used Advisory Opinion 30 of USPAP,which is the To Form The Value Opinion(s) same definition as the one in FIRREA. ** The client is always an intended user. 25-2759 McKinlay & Klundt Appraisal Company Page 7 Scope of Work Assignment Elements 5. Key Dates Effective Value Date February 21,2025 (point in time the value applies) Date Property Appraised Was Observed By One Or More Land&Building Observed February 21, 2025 Appraisers Signing This Report 6. Assignment Conditions Extraordinary Assumptions One Or More Apply, Detailed Later Herein Hypothetical Conditions None Used Jurisdictional Exceptions None Used Expected Public or Private On-Site or Not Expected Off-Site Improvements Affect Value Assemblage of Estates or Component Parts Affects Value Not Expected Other None Used 25-2759 McKinlay & Klundt Appraisal Company Page 8 Scope of Work Relevant Characteristics The seventh assignment element is relevant characteristics about the property appraised. These characteristics are typically categorized as physical, legal, and economic. Physical attributes of the property appraised are presented later in the Subject section of this report. Some characteristics are identified below. Atypical issues are listed in the Noteworthy Issues section and may be further detailed elsewhere herein. Unless specifically stated otherwise,the estate appraised(listed below) assumes no adverse leases, liens or encumbrances other than normal covenants and restrictions of record. 7a. Physical Existing Property Use Commercial Use Property Use Reflected In One As Is Or More Value Opinions Sources of Information About Exterior Observation; Online Public Records; the Property Appraised Included Public Records In Government Office 7b. Legal Category Of Property Appraised Real Property Estate(s)Appraised Fee Simple Legal Issues Considered No Atypical Legal Issues Environmental Concerns No Known Environmental Concerns 7c. Economic Effect Of Lease(s) On Value Not Applicable Cost Information Type of Reconstruction Replacement Cost New Not Considered Cost Used Source of Reconstruction Cost Information Not Applicable 25-2759 McKinlay & Klundt Appraisal Company Page 9 Scope of Work Extent of Services Provided Number of Final Value Opinions One Developed Value Opinion(s)Reflect The Worth Of the Property Appraised As Is Extent Of Report Preparation An Appraisal Report Other Reporting Requirements Not Applicable Extent Of Data Research Typical Local MLS;Private Data Provider Service;Public Records At Government Office; Online Public Data Sources Records; Other Appraisers; Real Estate Sales Agents; Buyers and/or Sellers; Landlords and/or Tenants Documents Considered County Records Data Verification Direct and Indirect Methods Adequate Interior and Exterior Extent Of Subject Observation By One Specifics of this viewing, if any, are detailed in the Or More Appraisers Signing Report Extraordinary Assumptions&Disclosures section of this report. Other Intended Use Considerations Client's Prior Engagement Numerous Of Appraisal Services Loan To Value Ratio Not Applicable Atypical Issues No Atypical Issues Assignment Complexity Typical Complexity FIRREA Compliance Not Applicable Insurable Value Insurable Value Is Not An Intended Use Miscellaneous Matters Scope of Work Agreement Agreement in Addenda 25-2759 McKinlay & Klundt Appraisal Company Page 10 Scope of Work Appraisal Development Appraisal development is the extent of research and analyses that produce one or more credible opinions of value for one or more specifically identified intended users and an explicitly stated intended use. In this context,credible is defined as "worthy of belief'. Depending upon the intended use,intended users, and agreements between the appraiser and the client,the appraisal development process may include several,but not necessarily all of the following tasks. ➢ observation of the property appraised ➢ research for appropriate market data ➢ data verification ➢ consideration of influential market area,physical, economic, and governmental factors ➢ determination of the subject's highest and best use(s),if appropriate ➢ development of one or more applicable approaches to value ➢ reconciliation of value indications ➢ preparation of this report In most cases,the core valuation process begins with a highest and best use analysis. This is essential because it establishes a framework for the proper selection of comparables. Cited comparables should have the same highest and best use as the property appraised. 25-2759 McKinlay & Klundt Appraisal Company Page 11 Scope of Work Appraisal Development If some property modification like new construction is contemplated,a feasibility analysis may be appropriate. In some cases,feasibility may simply be justified by inferred market evidence like low vacancy or rising rents. According to USPAP, all approaches that are applicable to the interest being appraised and necessary to produce credible results must be developed. The type of highest and best use; extent of feasibility considered; and the relevance of each major approach are listed below. Highest and Best Use An Inferred Demand Analysis Feasibility Analysis (a more detailed study separate Separate Feasibility Analysis Not Developed from highest&best use) Cost Approach Not Applicable And Not Included In Report Sales Comparison Applicable And Included In Report Income Approach Applicable And Included In Report Quoting"The Appraisal of Real Estate" Thirteenth Edition published by the Appraisal Institute,page 186 says "Highest and best use analysis and feasibility analysis are interrelated, but feasibility analysis may involve data and considerations that are not directly related to highest and best use determinations. Such analyses may be more detailed than highest and best use analysis, have a different focus, or require additional research." Applicable and necessary approaches were selected for development after consideration of available market data,intended use, and intended user(s). An approach considered not applicable was omitted because this methodology is not appropriate for the property interest being appraised,or sufficient data to properly develop the approach was not available. Any approach judged not applicable,yet included in this report,was developed solely at our client's request. Data used to develop an inapplicable but included approach has a low to nil degree of comparability to the subject. Hence,no emphasis was given an approach deemed not applicable but included. Furthermore,no liability or responsibility is assumed for an approach considered not applicable but included at the client's request. 25-2759 McKinlay & Klundt Appraisal Company Page 12 Scope of Work Concept Explanations Intended use and all intended user(s) should be weighed heavily during the scope of work decision. A single intended user who frequently engages appraisal services is likely very knowledgeable about the appraisal process. For this type user,the appraisal development and reporting for less complex property types might be toward the lower end of the spectrum. By contrast,multiple intended users, especially those with opposing motivations, likely need extensive appraisal development and reporting. Litigation is a prime example when a thorough appraisal development and detailed reporting is warranted. A loan to value ratio reflects risk. For commercial-grade loans,ratios over 75%are generally regarded as risky. If a contemplated loan is viewed as risky,then the extent of appraisal development and the level of report detail should be more comprehensive. Similarly,more complex properties generally warrant more thorough analyses and more extensive report details. Prior engagement of appraisal services by a client implies a level of awareness about the appraisal process. A greater awareness may justify a less thorough level of report detail whereas the opposite is true for an individual who has never engaged an appraisal. A Jurisdictional Exception is an assignment condition,which voids a portion of USPAP that is contrary to law or public policy. When a Jurisdictional Exception applies,only the contrary portion is void. The remainder of USPAP remains in full force and effect. Jurisdiction Exceptions always shrink USPAP,not expand it. Data verification affects reliability. Direct data verification confirms information used in the report with one or more parties who have in-depth knowledge about physical characteristics for the property being appraised, or related financial details. Indirect verification employs information obtained from a secondary source like a data reporting service, a multiple listing service, or another appraiser. Direct verification is generally more time-consuming and costly,but also more reliable. Information from all data sources was examined for accuracy, is believed reliable,and assumed reasonably accurate. However,no guaranties or warranties for the information are expressed or implied. No liability or responsibility is assumed by McKinlay&Mundt Appraisal Company or the appraiser(s) for any inaccuracy from any seemingly credible information source. 25-2759 McKinlay & Klundt Appraisal Company Page 13 Scope of Work Concept Explanations A statement about observation of the subject property by the appraiser(s)is listed above. If the subject was observed,this viewing was not as thorough as a professional property inspection. A professional inspector determines the precise physical condition,remaining useful life, and operability of major building components like the structural system,roof cover, electrical system,plumbing, and heating plant. Inspectors typically do not ascertain size of the building, or characteristics of the land. By contrast, an appraiser commonly ascertains both land and building size. Ordinarily,appraisers do not determine operability, or remaining useful life of building systems. An appraiser typically views real estate to determine only general attributes like physical condition of the building as a whole, site topography and access,building size, construction quality,floor plan, and functionality of the property as a whole. For this appraisal,no probes, investigations, or studies were made to discover unapparent, adverse physical features. Highest and best use analyses can be categorized into two groups-inferred and fundamental. A fundamental analysis is quantified from broad demographic and economic data such as population,household size,and income. Supply is inventoried. Subject specific characteristics are considered. Then,the relationship between supply and demand is weighed to determine a specific highest and best use for the subject. An inferred analysis uses local trends and patterns to infer a general highest and best use for the subject. For an inferred analysis,market dynamics that might be considered include prices,market exposure times,rents, vacancy,and listings of similar real estate. Inferred analyses emphasize historical data while fundamental analyses are based on future projections. The kind of highest and best use analysis utilized in this assignment is listed above. Scope of Work Limitation All readers of this report should be aware the foundation, for conclusions communicated herein,was based on and limited to an inferred market analysis,not a fundamental market study. Our scope of work agreement with our client does not include a detailed fundamental analysis. A fundamental analysis forecasts demand from broad demographic and economic data like population and income. Existing supply is inventoried. Then the relationship of supply and demand is weighed to determine net demand. An inferred analysis is based on local trends and patterns from which inferences are made. Sales, listings,marketing intervals, and/or price change for other similar land infer there is adequate demand for the subject parcel at a price level congruous with this data. If the client desires an in-depth analysis regarding the subject's marketability,potential alternate uses, or a numeric demand analysis, it is suggested a detailed fundamental market analysis be prepared. Report Reliance & Use Restrictions No liability is assumed,expressed, or implied by McKinlay&Klundt Appraisal Company, or the appraiser(s)for unauthorized use of this report. Only those persons,parties, entities,companies, corporations,partnerships, associations, or groups that are explicitly identified as an intended user on page 7 may rely on,and use this report. There are no implied, suggested,inferred,consequential, or indirect intended users of this report. Unauthorized users should not use, or rely on any portion of this document. Unauthorized users do so at their own risk and peril. 25-2759 McKinlay & Klundt Appraisal Company Page 14 Scope of Work Exclusion - Insurable Value The cost approach may or may not have been developed herein. Unless explicitly stated otherwise,the cost approach was developed solely to support the subject's market value. Use of this appraisal, in whole or part, for another purpose is not an expected intended use. Nothing in this appraisal should be used, or relied upon to determine the amount or type of insurance coverage to be placed on the subject property. The signatory/ signatories to this report assume no liability for, and do not guarantee that any insurable value inferred from this report will result in the subject property being adequately insured for any loss that may be sustained. Since labor costs,material costs,building codes, construction intervals, and governmental regulations are constantly changing,the cost approach may not be a reliable indication of replacement or reproduction cost for any date other than this report's effective value date. 25-2759 McKinlay & Klundt Appraisal Company Page 15 Extraordinary Assumptions & Disclosures An extraordinary assumption is defined by the Uniform Standards of Professional Appraisal Practice (USPAP)to be"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 conclusions". Extraordinary assumptions presume as fact otherwise uncertain information. In other words,this type assumption involves uncertainty about an underlying premise. An example is a survey that displays a lot size. If the lot size is later found to be much smaller,then the value conclusion may be negatively affected. USPAP Standard Rule 1-2(f)requires the identification of all extraordinary assumptions that are necessary for credible assignment results. This appraisal employs the following extraordinary assumptions. ➢ Features of the subject site such as legal description,dimensions, size,etc. were obtained from publicly available sources and provided from our client. All information taken therefrom is assumed reasonably correct. ➢ Some details of the subject improvements like size and shape were obtained from public records and personal observation. All information taken therefrom is assumed reasonably correct. and provided plans and specs. All are assumed reasonably correct. ➢ Observation of the subject property was limited to the entire site,most of the roof(not visible from the ground),most exterior walls(as visible from the ground. Unseen spaces are assumed to have physical condition and construction quality similar to that in observed spaces. It is further assumed the subject has no hidden defects. The appraiser(s)did not attempt to study, dig,probe,investigate, detect,remove materials, or discover unfavorable physical features. ➢ Features of the proposed subject site such as legal split into four individual lots will be allowable and buildable. ➢ Real estate tax information for the subject was obtained from a reputable online source,so it is assumed reasonably correct. All information from any credible source is assumed reasonably correct. Moreover,this information is assumed the most recent that is expeditiously available to the public. ➢ A public water system and public sewer main are connected to the subject structure, or available near the subject's lot lines. This appraisal assumes these systems possess sufficient capacity to serve the intended use of the subject improvements, if any. This appraisal also assumes the water is potable and non-contaminated. If these systems were inadequate to serve the subject's intended use,then the subject's value and marketability would be adversely affected. ➢ Assumptions and presumptions discussed in the Noteworthy Issues section of this report, if any,are incorporated by way of reference into these Extraordinary Assumptions&Disclosures. ➢ A recently issued title policy was not furnished to the appraiser(s). If a value-impairment is identified or suggested in a title policy, another professional report, or some other document,this appraisal does not address issues that are significantly atypical for a valuation of this type property unless specifically identified in the Scope of Work and/or Noteworthy Issues section of this report. The above extraordinary assumptions as well as other assumptions anywhere herein are integral premises upon which the conclusions in this document are based. If any of these assumptions are later found to be materially untrue or inaccurate,then this report's assignment results may or may not be affected. 25-2759 McKinlay & Klundt Appraisal Company Page 16 Hypothetical Conditions USPAP defines a hypothetical condition as"a condition, directly related to a specific assignment,which is contrary to what is known by the appraiser to exist on the effective date of the assignment results,but is used for the purpose of analysis." Hypothetical conditions assume conditions that are contrary to known fact. An illustration is the current valuation of a proposed home. For the purpose of a rational analysis,it is assumed the home exists on the effective value date,but it is known the home is nonexistent. Another example is a new zoning classification,that a property does not have today,but the new zoning is assumed for the purpose of a logical current valuation. Uncertainty is not involved with a hypothetical condition. An essential premise underlying the valuation is known not to exist on the effective value date. USPAP Standard Rule 1-2(g)requires the identification of all hypothetical conditions that are necessary for a credible value opinion. This appraisal employs no hypothetical conditions. Personal Property & Intangibles Personal property is movable and not permanently affixed to the real estate. Examples of personal property are freestanding ranges,refrigerators,tables,desks, chairs,beds, linen, silverware,hand tools, and small utensils. An intangible is a nonphysical asset like franchises,trademarks,patents,goodwill,and mineral rights. Personal and intangible property included in this appraisal's value opinion,if any,is considered typical for this type real estate,yet insignificant to the value opinion. Therefore,non-realty is not itemized or valued herein. Moreover,this report's final value conclusion(s)excludes unaffixed equipment, detached trade fixtures, and chattel unless specifically stated to the contrary. 25-2759 McKinlay & Klundt Appraisal Company Page 17 Definition of Market Value The definition of market value is used in all federally regulated transactions that exceed a minimum amount. This definition is mandated by Title XI of the Financial Institutions Reform,Recovery, and Enforcement Act (FIRREA) of 1989. The exact same definition was published in the Federal Register several times by different federal agencies. Some printings are: 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;and 59 Federal Register 29499, June 7, 1994.) Federal agencies publishing the exact same definition include the • Office of the Comptroller of the Currency(OCC) as 12 CFR 34, subpart C • Federal Reserve Board(FRB) as 12 CFR 225, Subpart G • Federal Deposit Insurance Corporation(FDIC) as 12 CFR 323.2,Definition(g)in 55 Federal Register, 33,888 August 20, 1990,Effective September 19, 1990. • Office of Thrift Supervision(OTS) as 12 CFR 564 • National Credit Union Administration(NCUA)as 12 CFR 722 The exact same definition was again published jointly by the OCC, OTS,FRS, and FDIC on page 61 of the "Interagency Appraisal and Evaluation Guidelines". These guidelines were published in the Federal Register on December 10,2010 as Volume 55,page 77472. All the above citations defined market value as: "the mostprobable 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 are 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 both typically motivated; • both parties are well informed or well advised, and acting in what they consider their own best interests; • a reasonable time is allowed for exposure in the open market; • 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." Virtually the same definition is also cited in Advisory Opinion 30 in the Uniform Standards of Professional Appraisal Practice(USPAP). 25-2759 McKinlay & Klundt Appraisal Company Page 18 Definition of Real Property Estates One or more of the following underlined legal estates or interests are valued in this report. Definitions of three estates, quoted immediately below, are from The Dictionary of Real Estate Appraisal, 6th Edition; published by the Appraisal Institute, copyright 2015. • 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." • Leased Fee Estate "The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires." • Leasehold Estate "The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease." The words "Leased Fee Estate" constitute a real estate term. This term is not defined in Black's Law Dictionary,the Deluxe Eight Edition. However,leased fee estate is defined by USLegal.com as: "an ownership interest held by a landlord with the right of use and occupancy conveyed by lease to others; usually consists of the right to receive rent and the right to repossession at the termination of lease." In effect,the definitions of"lease fee estate"by the Appraisal Institute and USLegal.com are equivalent. Chicago Title Insurance Company, one of the largest in the country, does not use the term "Lease Fee Estate" in their title insurance policies. Chicago Title does insure the "Fee Simple Estate Subject to the Leases". For all practical purposes, the terms "Leased Fee Estate" and "Fee Simple Estate Subject to the Leases" are equivalent. Market value of the leased fee estate represents the worth of real property to the landlord(the lessor) as encumbered by terms set forth in one or more leases. A leasehold estate is the tenant's(the lessee's) interest in real property. A lease is an encumbrance because it limits or precludes the landlord's right of use. If a property is unencumbered,then usage of the term"fee simple estate" could be strictly or narrowly interpreted to mean the property is not encumbered by lease. If there are no leases for a multitenant facility,then the building has no lease income. Under this interpretation,the value of the fee simple(VFS)would be less than the value of the leased fee (VLF). Accordingly,the VFS < VLF because lease-up costs must be paid by a buyer to find tenants. In effect,total lease-up cost would constitute a penalty to the property's value imposed by a buyer. Components of a total lease-up cost include leasing commissions,rent loss, concessions,tenant improvements, any other cash expenditures,and buyer incentive to undertake the risk of lease-up. 25-2759 McKinlay & Klundt Appraisal Company Page 19 Definition of Real Property Estates According to the Appraisal Institute course General Appraiser Income Approach, Part 2-page 231,there are two interpretations of the term"fee simple estate". A second interpretation for fee simple estate is a value-oriented definition used by many real estate appraisers. For valuation purposes,market value of the fee simple is the worth of the property assuming it is already leased at market rent to a level of stabilized occupancy. Under this interpretation,the VFS >!VLF because lease-up costs to find tenants are already paid. An extremely important concept in the valuation of leases is the relationship between market rent or income (IFS)and contract rent,the rent stated in a lease(IMF). If the contract rent is below market rent(IMF < IFS), the tenant enjoys an advantageous position called a positive leasehold interest. Then,the value of the leased fee is usually less than the value of the fee simple (VLF < VFS). If contract rent exceeds market rent(IMF> IFS),then the landlord has an advantage while the tenant has an unfavorable position called a negative leasehold interest. When contract rent equals market rent,then the numerical value of these two estates is equal but the rights of each estate are distinctly different. In essence,the difference interpretations for the fee simple estate involve lease-up costs. If fee simple is interpreted to mean no leases encumber the property,then a buyer of a multitenant facility would incur lease- up costs. These cost would likely be substantial so a prospective buyer would penalize the property by the amount of the total lease-up cost,which is detailed above. If fee simple is interpreted to mean the value of real property already leased up to stabilized occupancy at market rent,then no lease-up is necessary so no lease-up penalty is appropriate. For valuation purposes in this report,three estates are defined below. • Market value of the fee simple estate for a single-user property like a one-user building or vacant land represents the worth to the most probable buyer via the sales comparison approach. Income generation on a rental basis is not an important factor to this buyer. Property suitability for the buyer's own use or use control are the primary purchasing criteria. Lease-up costs are not relevant. In this context,fee simple means the property is not encumbered by lease. • The fee simple estate for a multiple-tenantfacility is different from the one immediately above. A different interpretation is appropriate for a building designed to generate real estate rental income like a shopping center or apartment building. This estate for this type property is defined as the worth to the most probable buyer assuming the property is already leased to a level of stabilized occupancy at normal market terms including market rent. Lease-up costs are assumed already paid so a lease-up penalty is not appropriate. • An investment grade, leased, single-user building is best valued in a fashion that is similar to a multiple-tenant property. Hence, the interpretation for fee simple in the immediately preceding paragraph is best for an investment grade, leased, single-user building. • Market value of the leased fee estate is defined as the worth of real property to its current owner as encumbered by terms specified in one or more leases. • Lastly, a leasehold estate is defined as one tenant's interest in real property as defined by a lease. These definitions are crucial valuation concepts in this report. 25-2759 McKinlay & Klundt Appraisal Company Page 20 Non-Disclosure State Idaho is a non-disclosure state. This means essential information like grantor, grantee, sale prices and sale dates for real estate transactions are not listed in public records. Hence, appraisers must gather key details from parties involved who have no incentive to cooperate. Often appraisers are compelled to obtain the information from secondary sources. This lessens reliability of the data and lengthens the time required to complete a proper appraisal. McKinlay&Klundt Appraisal Company discloses it made reasonable attempts, within the context of the scope of work,to obtain all key information from seemingly reliable sources; but common sense suggests some data may not be completely accurate. Assemblage USPAP Standard Rule 1-4(e)requires an analysis of the assemblage of various estates or component parts that affect value. In this case,no assemblage is expected so value is not affected. 25-2759 McKinlay & Klundt Appraisal Company Page 21 Contingent and Limiting Conditions 1. By this notice, all persons, companies, or corporations using or relying on this report in any manner bind themselves to accept these Contingent and Limiting conditions, and all other contingent and limiting conditions contained elsewhere in this report. Do not use any portion of this report unless you fully accept all Contingent and Limiting conditions contained throughout this document. 2. The "Subject" or"Subject Property" refers to the real property that is the subject of this report. An Appraiser is defined as an individual person who is licensed to prepare real estate appraisal-related services in the State of Idaho and affixes his/her signature to this document. 3. Throughout these Contingent and Limiting Conditions,the singular term "Appraiser" also refers to the plural term"Appraisers". The terms "Appraiser" and"Appraisers" also refer jointly/collectively to "McKinlay&Klundt Appraisal Company",its officers, employees, contractors,personnel, staff, shareholders,members, and affiliates. The masculine terms "he" or"his" also refer to the feminine term"she" or"her". 4. In these Contingent and Limiting Conditions,the "Parties"refers to all of the following collectively: (a)the Appraiser(s), (b)McKinlay&Klundt Appraisal Company, (c)the client, and(d) all intended users. 5. These Contingent and Limiting Conditions are an integral part of this report along with all certifications,definitions, descriptions, facts, statements, assumptions, disclosures,hypotheses, analyses, and opinions. 6. All contents of this report are prepared solely for the explicitly identified client and other explicitly identified intended users. The liability of the Appraiser is limited solely to the client. There is no accountability, obligation,or liability to any other third party. Other intended users may read but not rely on this report. In no event, shall the Appraisers be liable for consequential, special, incidental or punitive loss, damages or expense(including without limitation, lost profits, opportunity costs,etc.) even if advised of their possible existence. If this report is placed in the hands of anyone other than the client,the client shall make such party aware of all contingent and limiting conditions, assumptions, and disclosures. Use of this report by third parties shall be solely at the risk of the third party. 7. This document communicates the results of an appraisal assignment. This communication is not an inspection, engineering, construction,legal,or architectural report. It is not an examination or survey of any kind. Expertise in these areas is not implied. The Appraiser is not responsible for any costs incurred to discover, or correct any deficiency in the property. 25-2759 McKinlay & Klundt Appraisal Company Page 22 Contingent and Limiting Conditions 8. As part of this appraisal, information was gathered and analyzed to form opinion(s)that pertain solely to one or more explicitly identified effective value dates. The effective value date is the only point in time that the value applies. Information about the subject property,neighborhood, comparables, or other topics discussed in this report was obtained from sensible sources. In accordance with the extent of research disclosed in the Scope of Work section, all information cited herein was examined for accuracy, is believed to be reliable, and is assumed reasonably accurate. However,no guaranties or warranties are made for this information. No liability or responsibility is assumed for any inaccuracy which is outside the control of the Appraiser,beyond the scope of work,or outside reasonable due diligence of the Appraiser. 9. Real estate values are affected by many changing factors. Therefore, any value opinion expressed herein is considered credible only on the effective value date. Every day that passes thereafter,the degree of credibility wanes as the subject changes physically,the economy changes, or market conditions change. The Appraiser reserves the right to amend these analyses and/or value opinion(s) contained within this appraisal report if erroneous, or more factual-information is subsequently discovered. No guarantee is made for the accuracy of estimates or opinions furnished by others,and relied upon in this report. 10. In the case of limited partnerships, syndication offerings, or stock offerings in the real estate,the client agrees that in case of lawsuit(brought by the lender,partner, or part owner in any form of ownership, tenant, or any other party),the client will hold McKinlay&Klundt Appraisal Company, its officers, contractors, employees and associate appraisers completely harmless. Acceptance of, and/or use of this report by the client, or any third party is prima facie evidence that the user understands and agrees to all these conditions. 25-2759 McKinlay & Klundt Appraisal Company Page 23 Contingent and Limiting Conditions 11. For appraisals of multiunit residential, only a portion of all dwellings was observed. A typical ratio of observed dwellings roughly approximates 10%of the total number of units, and this ratio declines as the number of dwellings grows. It is assumed the functionality,physical condition, construction quality, and interior finish of unseen units are like the functionality,physical condition, construction quality, and interior finish of observed units. If unobserved dwellings significantly differ from those that were viewed in functionality,physical condition, quality, or finish,the Appraiser reserves the right to amend theses analysis and/or value opinion(s). 12. If the appraised property consists of a physical portion of a larger parcel is subject to the following limitations. The value opinion for the property appraised pertains only to that portion defined as the subject property. This value opinion should not be construed as applying with equal validity to other complementary portions of the same parcel. The value opinion for the physical portion appraised+ the value of all other complementary physical portions may or may not equal the value of the whole parcel. 13. Unless specifically stated otherwise herein,the Appraiser is unaware of any engineering study made to determine the bearing capacity of the subject land,or nearby lands. Improvements in the vicinity, if any,appear to be structurally sound. It is assumed soil and subsoil conditions are stable and free from features that cause supernormal costs to arise. It is also assumed existing soil conditions of the subject land have proper load bearing qualities to support the existing improvements, or proposed improvements appropriate for the site. No investigations for potential seismic hazards were made. This appraisal assumes there are no conditions of the site, subsoil,or structures,whether latent,patent, or concealed that would render the subject property less valuable. Unless specifically stated otherwise in this document,no earthquake compliance report, engineering report, flood zone analysis,hazardous substance determination, or analysis of these unfavorable attributes was made, or ordered in conjunction with this appraisal report. The client is strongly urged to retain experts in these fields, if so desired. 14. If this report involves an appraisal that values an interest,which is less than the whole fee simple estate,then the following disclosure applies. The value for any fractional interest appraised+the value of all other complementary fractional interests may or may not equal the value of the entire fee simple estate. 15. If this appraisal values the subject as though construction,repairs,alterations,remodeling,renovation, or rehabilitation will be completed in the future,then it is assumed such work will be completed in a timely fashion,using non-defective materials,and proper workmanship. All previously completed work is assumed completed in substantial conformance with plans, specifications,descriptions, or attachments made or referred to herein. It is also assumed all planned, in-progress, or recently completed construction complies with the zoning ordinance,and all applicable building codes. A prospective value opinion has an effective value date that is beyond or in the future relative to this report's preparation date. If this appraisal includes a prospective valuation, it is understood and agreed the Appraiser is not responsible for an unfavorable value effect caused by unforeseeable events that occur before completion of the project. 25-2759 McKinlay & Klundt Appraisal Company Page 24 Contingent and Limiting Conditions 16. This valuation may or may not include an observation of the appraised property by an Appraiser. The extent of any observation is disclosed in the Scope of Work section of this report. Any observation by an Appraiser is not a professional property inspection. Viewing of the subject was limited to components that were not concealed, clearly observable, and readily accessible without a ladder on the property observation date. As used herein,readily accessible means within the Appraiser's normal reach without the movement of any man made or natural object. Comments or descriptions about physical condition of the improvements are based solely on a superficial visual observation. These comments are intended to familiarize the reader with the property in a very general fashion. 17. The allocation of value between the subject's land and improvements, if any,represents our judgment only under the existing use of the property. A re-evaluation should be made if the improvements are removed, substantially altered, or the land is utilized for another purpose. 18. The Client and all intended users agree to all the following. (A)This appraisal does not serve as a warranty on the physical condition or operability of the property appraised. (B)All users of this report should take all necessary precautions before making any significant financial commitments to or for the subject. (C)Any estimate for repair or alternations is a non-warranted opinion of the Appraiser. 19. Electric,heating, cooling,plumbing,water supply, sewer or septic,mechanical equipment, and other property systems were not tested. No determination was made regarding the operability,capacity, or remaining physical life of any component in, on, or under the real estate appraised. All building components are assumed adequate and in good working order unless stated otherwise. Private water wells and private septic systems are assumed sufficient to comply with federal, state, or local health safety standards. No liability is assumed for the soundness of structural members since structural elements were not tested or studied to determine their structural integrity. The roof cover for all structures is assumed water tight unless otherwise noted. This document is not an inspection, engineering or architectural report. If the client has any concern regarding structural,mechanical, or protective components of the improvements, or the adequacy or quality of sewer,water or other utilities,the client should hire an expert in the appropriate discipline before relying upon this report. No warranties or guarantees of any kind are expressed or implied regarding the current or future physical condition or operability of any property component. 20. Any exhibits in the report are intended to assist the reader in visualizing the subject property and its surroundings. The drawings are not surveys unless specifically identified as such. No responsibility is assumed for cartographic accuracy. Drawings are not intended to be exact in size, scale, or detail. 21. Value opinions involve only real estate,and inconsequential personal property. Unless explicitly stated otherwise,value conclusions do not include personal property,unaffixed equipment,trade fixtures,business-good will, chattel, or franchise items of material worth. 25-2759 McKinlay & Klundt Appraisal Company Page 25 Contingent and Limiting Conditions 22. All information and comments concerning the location,market area,trends,construction quality, construction costs,value loss,physical condition,rents, or any other data for the subject represent estimates and opinions of the Appraiser. Expenses shown in the Income Approach,if used, are only estimates. They are based on past operating history,if available, and are stabilized as generally typical over a reasonable ownership period. 23. No liability is assumed for matters of legal nature that affect the value of the subject property. Unless a clear statement to the contrary is made in this report,value opinion(s) formed herein are predicated upon the following assumptions. (A)The real property is appraised as though, and assumed free from all value impairments including yet not limited to title defects, liens,encumbrances,title claims, boundary discrepancies,encroachments, adverse easements, environmental hazards,pest infestation, leases,and atypical physical deficiencies. (B)All real estate taxes and assessments,of any type, are assumed fully paid. (C)It is assumed ownership of the property appraised is lawful. (D)It is also assumed the subject property is operated under competent and prudent management. (E) The subject property was appraised as though, and assumed free of indebtedness. (F)The subject real estate is assumed fully compliant with all applicable federal, state, and local environmental regulations and laws. (G) The subject is assumed fully compliant with all applicable zoning ordinances,building codes,use regulations, and restrictions of all types. (IT)All licenses, consents,permits, or other documentation required by any relevant legislative or governmental authority,private entity, or organization have been obtained, or can be easily be obtained or renewed for a nominal fee. 24. Conversion of the subject's income into a market value opinion is based upon typical financing terms that were readily available from a disinterested,third party lender on this report's effective date. Atypical financing terms and conditions do not influence market value,but may affect investment value. 25. This appraisal was prepared by McKinlay&Mundt Appraisal Company and consists of trade secrets and commercial or financial information,which is privileged,confidential, and exempt from disclosure under 5 U.S.C. 522 (b) (4). 26. The Appraiser is not required to give testimony or produce documents because of having prepared this report unless arrangements are agreed to in advance. If the Appraiser is subpoenaed pursuant to court order or required to produce documents by judicial command,the client agrees to compensate the Appraiser for his appearance time,preparation time,travel time,and document preparation time at the regular hourly rate then in effect plus expenses and attorney fees. In the event the real property appraised is, or becomes the subject of litigation, a condemnation, or other legal proceeding, it is assumed the Appraiser will be given reasonable advanced notice, and reasonable additional time for court preparation. 25-2759 McKinlay & Klundt Appraisal Company Page 26 Contingent and Limiting Conditions 27. Effective January 26, 1992,the Americans with Disabilities Act(ADA) -a national law, affects all non-residential real estate or the portion of any property,which is non-residential. The Appraiser has not observed the subject property to determine whether the subject conforms to the requirements of the ADA. It is possible a compliance survey,together with a detailed analysis of ADA requirements, could reveal the subject is not fully compliant. If such a determination was made,the subject's value may or may not be adversely affected. Since the Appraiser has no direct evidence, or knowledge pertaining to the subject's compliance or lack of compliance,this appraisal does not consider possible noncompliance or its effect on the subject's value. 28. McKinlay&Klundt Appraisal Company and the Appraiser have no expertise in the field of insect, termite, or pest infestation. We are not qualified to detect the presence of these or any other unfavorable infestation. The Appraiser has no knowledge of the existence of any infestation on, under,above, or within the subject real estate. No overt evidence of infestation is apparent to the untrained eye. However,we have not specifically inspected or tested the subject property to determine the presence of any infestation. No effort was made to dismantle or probe the structure. No effort was exerted to observe enclosed, encased, or otherwise concealed evidence of infestation. The presence of any infestation would likely diminish the property's value. All value opinions in this communication assume there is no infestation of any type affecting the subject real estate or the Appraiser is not responsible for any infestation or for any expertise required to discover any infestation. Our client is urged to retain an expert in this field, if desired. 29. All opinions are those of the signatory Appraiser based on the information in this report. No responsibility is assumed by the Appraiser for changes in market conditions, or for the inability of the client,or any other party to achieve their desired results based upon the appraised value. Some of the assumptions or projections made herein can vary depending upon evolving events. We realize some assumptions may never occur and unexpected events or circumstances may occur. Therefore, actual results achieved during the projection period may differ from those set forth in this report. Compensation for appraisal services is dependent solely on the delivery of this report,and no other event or occurrence 30. No warrantees are made by the Appraiser concerning the property's conformance with any applicable government code or property covenant including but not limited to all laws, ordinances,regulations, agreements, declarations, easements, condominium regulations,restrictions, either recorded or unrecorded. The client is urged to engage the services of a licensed attorney to confirm any legal issue affecting the property appraised. No liability or responsibility is assumed by the Appraiser to determine the cost of replacing or curing any supposedly defective physical component. 31. In the event of an alleged claim due to some defective physical component,the client must notify McKinlay&Klundt Appraisal Company and allow its representatives and experts to examine and test the alleged defective component before any repairs or modifications are made. If any type of repair or modification is made without the knowledge of the Appraisers,the Appraiser is released from all liability,real or alleged. 25-2759 McKinlay & Klundt Appraisal Company Page 27 Contingent and Limiting Conditions 32. The client and all explicitly identified intended users agree to notify in writing McKinlay&Klundt Appraisal Company,within one year of this report's preparation date,of any claim relating to or arising from this report regardless of any statute of limitations. If McKinlay&Klundt Appraisal Company does not receive this written notification within the year period defined in the paragraph, then the claimant releases the Appraiser from all claims arising from or related to this report. 33. The client and all explicitly identified intended users acknowledge that any claim relating to this report shall be settled in accordance with the commercial arbitration rules of the American Arbitration Association with the Parties each paying an equal share of all associated costs. 34. Any alleged claim must be filed in the Circuit Court for the County that encompasses most of or all of Twin Falls,Idaho 83303 where the Appraiser's business office is located. If a court of law voids any portion of these Contingent and Limiting Conditions,then the remainder remains in full force and effect. The claimants(s)agree not to contest the venue set forth herein and to submit to, and not contest,the exercise of personal jurisdiction over them by the foregoing court. The claimant(s)waive all rights concerning the exercise of personal jurisdiction of them by the foregoing courts and all claims of or concerning forum non-conveniences in the foregoing forum. 35. Superseding all comments to the contrary regardless of the date,this report may not be transferred or assigned without the prior written consent of McKinlay&Klundt Appraisal Company,the copyright holder. 36. No part of this report shall be published or disseminated to the public by advertising media,public relations media,news media, sales media,electronic devices, or other media without the prior written consent of McKinlay&Klundt Appraisal Company. This restriction applies particularly as to analyses, opinions, and conclusions;the identity of the Appraiser; and any reference to the Appraisal Institute or its MAI, SRPA, or SRA designations. Furthermore,no part of this report may be reproduced or incorporated into any information retrieval system without prior written permission from McKinlay&Klundt Appraisal Company,the copyright holder. 25-2759 McKinlay & Klundt Appraisal Company Page 28 Disclosures • • • Professional Standards All leading professional appraisal organizations,the U.S. Congress, all state legislatures,and numerous legal jurisdictions recognize the Uniform Standards of Professional Appraisal Practice (USPAP),promulgated by the Appraisal Foundation. Revised biennially to keep it contemporary,these standards set forth ethical practices and proper procedures for a competent appraisal. This appraisal fully complies with all relevant portions of the USPAP version in effect on the report date. It also complies with the Financial Institutions Reform,Recovery, and Enforcement Act(FIRREA), a federal law. The report date is shown in the Salient Information. Competency The persons signing this report are licensed to appraise real property in the state the subject is located. They affirm they have the experience,knowledge, and education to value this type property. They have previously appraised similar real estate. 25-2759 McKinlay & Klundt Appraisal Company Page 29 ♦ Area Data Regional TV 41 A r in rp Ir •�� s � - ,, � � • r• tip: �'}► ,� r • Regional Data Oesri - THE fPENCE OF WHERE 6 Counties Prepared by Esn Cassia County,10(16031)et al. Geography:County WrOdob Them-.ills { I 7,5 15 m mi 25-2759 McKinlay & Klundt Appraisal Company Page 31 • esr� ACS Key Population & . . Facts THE SCAFMCE Of wMEaE e Countles Prepared by[Sri Cassw County,1D(16031)et al. Geography: County 2015-2622 Ace Estlow" hrant Rellabplty TOTALS Total Population 182,274 d Total Households 64,365 560 Hou�nc Units 68,901 140 POPULATION 1ST BY MARITAL STATUS Total 140.147 100% 142 Never manb?d 37,120 26.6% 95e Harrod 79.383 56.6% 1,391 Widow-d 71629 5.4% 662 Divarrod 15,8I5 11.3% 9'>2 PWULATION 264 BY EDUCATIONAL ATTAINMENT Total 114.%0 100*4 272 NO schooling 2,276 2.0% 435 Nursery School 74 0.1% 08 / Kuidergarden 19 0.0% 21 / 1st to 4th irede 1,M0 1.2% 347 ,y 5th to eth Grads 4,885 4.2% 601 Some High Srhool 9,900 8.5% 839 High School Diploma 28,562 24J% 1,396 GEO 5,967 S_2% 592 Some Collage 27,190 23.7% 1,241 Assaciatss dagrco 11,973 10.4% a" Bachelors degree 14,207 12.4% 971 masts's dagrco 6,123 S.3% G38 Professional schoo+degree 1,477 1.3% 307 Ooaorats dog•aa 1,041 0.9% 298 y� Sawriew U S Census bureau.2018-2022 AmerwAm Corm unity Survey Rehabwty: ® high medium / low January 10,2025 25-2759 McKinlay & Klundt Appraisal Company Page 32 • esr� ACS Key Population & . . Facts tNr SCAFNCE OF WHERE b Countles Prepared by Csrl Cassia County,1D(16031)et al. Geography: County 2.18-2622 ACe ESUMM" NTaent MOE(t) Repa►111ty CIVILIAN wPLOYED POPULATION 1S-BY OCCUPATION Total 85,002 1001% 1.1o6 1M Management 9,3% 11.144 768 business and R,sancral operations 2,427 2.914 489 iJ Computer and mathematical 794 0.9% 230 Arc%,Wture and Mgrnrenrog 628 0.714 192 jl Ldw,physical,and social science 975 1.1% 261 Commarmty and social Services 1,238 1-5*4 259 Legal S48 0.4% 166 Edueatan,training,and lltwory 5,121 6-0% 531 Ms,design,entertainment,sports,and media 1,036 1.2% 251 � NEalthtare praclrtroner,technologists,Pont terhnrcrans 3,694 4.3% 410 Hsatthcare support 2,458 2.9% 421 onotertrnve ac.rvrce Boo 1-0M 210 Food preparation and so"Ing related 4,919 S.Sls 640 Budding and Grounds deannng and-wnteoannce 3,638 4-1% 509 Personal tarn and wrvres 1,910 2_2% 361 Sales and releted 7,045 8-34e 700 Office and administrative support 7,901 9.4% 672 Farrnvmg,frsrnng,and forestry 5,408 6.44e 572 Construction and extraction 4,B56 3_7% 549 Instarlation,menteKance,and mparr, 3,830 4.54e 457 Production 6,793 8.0% 693 Transportation and material moving 9,411 11.1% 794 CIVILIAN EMPLOYED POPULATION It r BY INDUSTRY Totn: 85,002 100% 1,190 Agncutture,lofeVI y,hslung anwf hunprj 9,765 11-5% 707 Mining,quarrying,and oil and gas artractnon 220 0.3% too UJ Construction 6,790 80% 622 Manufacturing 11,170 13.2% 942 Wholesale trade 1,970 2.3% 328 Retail trade 10,230 12.0% 606 Transportation And warokow*,0 4,160 4.9% 462 utsues 781 0.9416 168 W Information 902 0.9% 241 ,yl Finance and insurance 2,237 2.6% 408 Real eritate and rental and laasnmg 1,059 1-2% 275 jJ Professional,scientific,and technrcen serylce. 2,401 2.6% 357 Management of companies and enterprises 25 0.0'4 43 , Administratve and support and waste management services 3,057 3.6% 452 Educational services 7,005 8.2% 585 Heaftn care and social assistance 9,641 11.341 705 Arts,entertainment,end recreation 943 1_1% 240 JI Accommodation and food services 5,749 6.8-4 682 Other services,except public aCrnmrstration 3,812 4-5% 500 IW P.rDlic admirrrstratiort 3,177 3.7% 439 SeameW U.S Census bureau.2018-2022 American Communnty Survey Rehattdnty: ® fugh medium / tow January 10,2025 25-2759 McKinlay & Klundt Appraisal Company Page 33 • esr� ACS Key Population & . . Facts 7ME SCIfMCE Of wt/teE e Counties Prepared by Csri Cassw County,1D(16031)et al. Geography: County 201.-2622 Ace endow is P&MOnt MOE(!) RepabMtty TOrRL POPULATI M By Am 70te1 Population 192,274 300% 0 dj) Under 5 years 12,M3 6.9% 151 5 to 9 years 14,D0! 7.7% 650 IO to 14 yews 15,536 8.5% 6e5 15 to 19 years 13,495 7.4% 341 20 to 24 years 11,692 6.4% 745 25 to 29 yews 11,117 0.4% 199 30 to 34 years 11,682 6.4% 292 J5 to 39 yews 11,702 0.4% 614 40 to 44 years 11,702 6.4% 624 45 to 49 yew 9,699 5.1% 20) So to 54 yews 9,49) 5.2% 109 55 to 59 years 9,617 5.3% "S 60 to 64 yews 11,235 0 2% log 05 to 69 yews 9,375 5.1% Oil 70 to 74 yows 7.150 3.9% 513 75 to 79 yews 5,422 3.0% 402 80 to 95 yews 31J00 1.0% 359 85 years and over 21866 1-6% 207 SeuM t U S Census bureau.2018-2022 AmerwAim Community Survey RehaAddy: ® tugh QJ medium / iow January 10,2025 25-2759 McKinlay & Klundt Appraisal Company Page 34 • esr� ACS Key Population & . . Facts rMti SCAF CE Of WHfRf e Countles Prepared by Csra Cassw County,1D(16031)et al. Geography: County 2.1.-2622 Ace EMOM " Nepnt 1400(t) Reumba ty POPULATION By SEX sY A•! 194274 100% 0 watq Vnpwauon 02,016 50.5% 20 Under 5 years 6,461 3.5% 99 5 to 9 veal$ 7,137 3.9% 500 10 to 14 years 7,902 4.3% 409 15 to 19 yeas 7,009 3.8% 263 20 to 24 years 6,017 3.3% SSI 25 to 29 years '002 3 214 78 30 to 34 years 5,910 3.2% 191 35 to 30 years 5,748 3.2% 441 40 to 44 yews 6,450 3.5% 474 45 to 49 years 4.950 2.7% 139 50 to S4 yews S,134 2.8% Its 55 to 59 years 5,030 2.91% 376 60 to 64 yews 3,381 3.0% 474 65 to 69 wars 4.407 2-5% 426 70 to 74 yews 3,494 1.9% 366 75 to 79 years 2,426 1.3% 254 80 to 85 yews 1,488 0.8% 247 85 years end over 11171 0.6% 192 r'emale Popubbon 90,258 49.5% 212 Under 5 years 6,122 3.4% I14 5 t6 9 years 61871 3 6% 461 10 to 14 yews 7,634 4.2% 470 15 to 19 yews 0,486 3.604 217 20 to 24 yeas 5,675 3.1% 501 25 to 29 yews. 5,915 3.244 183 10 30 to 34 yaws 5,772 3.2% 221 35 to 39 yeas 5,954 3.3% 427 40 to 44 years 5,243 2-9% 406 45 to 49 yearG 4,749 2-6% 14v 50 to S4 yews 4.359 2.4% 147 SS to SO years 4,587 2.S% 30A 60 to 64 years 5,954 3.2% S26 65 to 69 years 4,872 2.7% 436 70 to 74 yews 3,656 2.0% 357 75 to 79 yews 2,996 1 6% 111 90 to 85 years 1,812 1.0% 261 85 yews end over 1.695 0.9% 222 Sorva$U S Census Bureau.2018-2022 American Community Survey RebaAdrty: ® tugh mednon / 1ow January 10,2025 25-2759 McKinlay & Klundt Appraisal Company Page 35 • esriACS Key Population & . . Facts THE SCAEMCE Of wHfRf b Counties Prepared by Csri Cassw County,1D(16031)et al. Geography: County 2.18-2022 Ace Esdou" Nrpnt WOE(*) Rspsba ty TOTAL HOUSEHOLDS BY INCOME i.... 64,365 10004 560 ,qxc tnas fl0'wo 1,880 2.0% 108 f10,000 t0 f14,099 3,164 4.9% 401 S15.000 to S19,999 21961 4.6% 459 $20,000 to$24.999 2,700 4-2% 432 f25,OW to 129.999 2,745 4.1% 444 $30,000 to 134,999 3,434 5.3% SOB f351000 to f191090 2,452 3-8% 351 $40,000 to$44,999 2,833 4.4% "1 $45,000 to f49,999 2,630 4.1% 413 19 f50,000 to$59,"0 5,836 9.1% 624 S60,000 to f74,999 8,239 12.64 029 f75,000 to S99.999 9,014 14.0% 64S S100,000 to$124,999 6,014 9.3% 692 f125,000tof149,999 3,677 5.7% 454 6 150.000 to S194.999 3,727 5 84 419 $200,000 or more 3,150 4 9% 194 Medan Household Incorne $62,307 N/A , Avor HJa Houcahold IrKoma $39,304 MOM HOUSEHOLDS WITH HOUSEHOLDER AGE-25 YEARS BY INCOME TL•Idl 3,006 100% 192 Less then 610,ON, 130 4.2% 87 ' $10,000 to f14,94Q 11 0.4% 22 f15.000 to f19,999 115 3.74 85 $20,000 to$24.999 242 7.8% 117 f25,000 to 129.099 191 6-2% 11.6 S30,000 to$34,999 242 7.8% 113 jJ 535,000 to S39,099 178 S.8% 00 $40,000 to f44,990 1S6 S.1% 90 545,000 to f49.999 200 6.5% 132 f501000 to f59.999 534 17.3% 262 S60,000 to 174.999 180 12.5% 162 �] SMOM to S99.999 384 12.4% 125 �) f100,900to1124,999 155 5.0% 99 y� S125,000 to f149,999 44 1.4% 57 1150,000 to 1109.990 81 2.6% 59 , S200,000 or more 37 3.21% 40 ' Median Household inconte for Hw c2S %/A N/A Avar"G Mona old Inconw for HHr<25 $57,156 f10,868 fosrtst U S Census bureau.2018-2022 American Commuady Survey Rehatimty. " high medium / iow January 10,2025 25-2759 McKinlay & Klundt Appraisal Company Page 36 • esr� ACS Key Population & . . Facts THE SCAEHCE Of WHERE b Counties Prepared by Bri Cassw County,1D(16031)et al. Geography: County 2010-2022 ACS Estimate penmRt ISOE(a) Rousbalty HOUSEHOLDS WITH HOUSEHOLDER AGE 25-44 YEARS SY INCOME 7otei 22,31J 1004 527 i"s Chas S10,D0o 375 1.71% ISO S10,000 to S14,999 573 2.6% 170 ,y S15.000 to S19,999 51) 3.6t4 251 ,L $20,000 to$24.999 735 3.3% 266 $25,000 to 529.999 8fi8 3.9% 328 $30,000 to S34,909 1,007 4-0% 355 S351000 to S39109a 591 2.6% 178 $40,000 to$44,999 am 4_0% 197 $45,000 to$49,999 1,Ot0 4.S% 283 Jj 550,000 to$59,999 2,293 10.1% 376 S60,000 to$74,999 3,297 14.91% 477 S75,000 to S99.999 1,708 16.6% 46) S100,000to$124,999 2,793 12.5% 474 S125,000to11149,999 1,300 5.8% 299 �J S 150.000 to S194.999 1,090 4-9% 254 $200.000 or more "4 4.0% 237 m Medan Hous•ho$d Income for HHr 25.44 $67,715 WA , Avarage Houwnold lnconw for HHr 25-44 5/21322 $5.484 HOUSEHOLDS WITH HOUSEHOLDER AGE 4S•64 YEARS SY INCOME Totdl 22.110 100% SOO t_e»then 610,00, 677 3.1% 163 $10,000 to S14,Ovu 11256 5.7% 311 S15.000 to 519,999 706 3 6% 235 $20,000 to$24.999 650 2.0% 226 S25,000to S29.099 579 2.6% 173 ,L S30,000 to$34,999 744 3.4% 194 535,000 to 539,099 816 3-7% 251 $40,000 to S44.999 841 3.1% 210 545,000 to S49.999 742 3.4% 192 S501000 to S59.999 1,509 6.6% 303 yjJ $60,000 to 574.999 2,654 12.9% 3" S75,000 to 599.999 2,156 14.3% 377 S100,000toS124,999 2,076 9-41% 338 S1251000 to 11149,999 1.f100 1.3% 315 jm S 150,000 t0 S109.990 11861 &4% 288 S200,000 or more 1,753 7.9% 288 Median Household Income for HHr 45-64 S72,452 WA Arar"G Mona old lnconw for HHr 45-64 $100,372 57.716 Sewft a U S Census bureau.2018-2022 Amencen Commu�4y Survey Rehatimty. " high medium / iow January 10,2025 25-2759 McKinlay & Klundt Appraisal Company Page 37 • esr� ACS Key Population & . . Facts tMr Scllrrc[Of wMlrsi b Countles Prepared by Csn Cassw County,1D(16031)et al. Geography: County 2010-2622 Ate fstlrnato Nrcont M0E(t) Rr umbili ty MOINICHOr a•WITYM 00000101.00t AM N♦BY INCOMR Total 16,856 1004 477 Loss man$10,000 707 4.2% 175 .!1 S10,000 to S14,099 1,324 7.9% 244 S15.000 to S19,999 1,247 7.4% 296 aV $20,000 to$24.999 1,073 6.4% 217 i]J f25,00(l to 529.999 1,107 6.6M 232 $30,000 to S34,9(19 1,3S1 0.0% 283 S351000 to S39109G 867 SA% 206 $40,000 to$44,999 940 5_6% 245 $45,000 to S49,999 676 4.0% 189 s50,000 to$59,999 1,S00 0.9% IL47 jy SW,LIW to 174,999 1,002 9.5M 219 S75,000 to S99.999 1,756 10,41% 167 S100,W0 to$124,999 1.000 5 9M 264 JJ S125,000 to 1149,999 51) 3-2% ISO ,V 6150.000 to S194.999 695 4 1% 205 1J $200,000 or more 476 2-1110N 136 Median Household IrxortN for HHr 6S+ $43,007 NIA Avorar2o Housanold lncaaw for HNr 65+ S651)W $5,600 Cite M•ti:N/A means not ava,labkt. 201R-2022 ACS Estimate:the American Community Survey(ACS)replaces census sample data. Esrr is releasing the 2018-2022 ACS estimates, five-year period data collected monthly from January 1,2010 through December 31,2022. Although the ACS includes many 0f the sub)ects previously covered try the decennial census sample,there are Significant differences between the two Surveys including furidarltetlital differences in survey design and residency rules. Margie of terror(MOIi):The MOE is a measure of the variability of the estimate due to sampling error. MOES ehatre the data user to measure the range of unceitamty for each estimate with 90 percent confidence. The range of uncertainty is called the ronfidenre mterval,and it is calculated by taking the estimate+/-the MOE. Fix example,d the ACS reports an estimate of 100 with an MOE of+/-20,then you can be 90 percent certain the value for the whole population falls between 80 and 120- Reiab*tY:These symbols represent threshold va urs that Ewi has established from the Coefficients of Variation(CV)to designate the usability of the estimates. The CV measures the amount of sampling error relative to the we of the estimate,expressed as a percentage. High"lability: Small CVs(less than or equal to 12 perce4it)are flagged green to indicate that the sampling error is small relative to the estimate and the estimate is reasonably reliable. 111 Medium Reliability: Estimates with CVs oetween 12 and 40 are flagged yellow-use with caution 1 Low Reliability. Large CVs(over 40 percent)at,Ragged red to indicate that the samong error is urge relative to the estimate. The estimate is con5rdered very unreliable, Sommm U S Census Bureau.2018-2022 American Community Survey Rehabdity: ® high ID medium / law Januiry 10,2025 25-2759 McKinlay & Klundt Appraisal Company Page 38 0 ggil 1 Market Profile tNr tcitNCE Of wirtat; 6 Counties Prepared by Esn Cassia County,ID(16031)et al_ Geography: County ID(16031),I0(... Population Summary 2010 Total PopuLition 163,297 2020 Total Population 181,276 2020 Group Quarters 2,520 20I4 Total Population 191,421 2024 Group Quarters 2,517 2029 Total Population 200,231 2024.2029 Annual Rate 0,90% 2024 Total Daytime Population 190,209 worker% 87,Oq0 Residents 103,119 NouaoAsld Summary 2010 Households 58,372 2010 Average Household Size 2.77 2020 Total Households 64,161 2020 Average Household Size 2.79 2024 Households 67,862 2024 Average Household Size 2,78 2029 Households 71,108 2029 Average Household Size 2.78 2024-2029 Annual Rate 0.94% 7010 Families 41,881 2010 Average Family Size 3.27 2024 families 47,084 2024 Average Family Size 3.35 2029 families 49,118 2029 Average Family Size 3.35 2024.2029 Annual Rate 0.85% Nonoing Unit Summary 2000 HOu5inq units 54,823 Owner Occupied Housing Units 65.5% Renter Occupied Mousing Units 26.9% Var.ent Housing Units 7.6% 2010 Housing Units 63,219 Owner Occupied Housing Units 62.7% Renter Occupied tlousing Units 29.6% Vacant Housing Units 7.8% 2020 housing Units 68,296 Owner Occupied Housing Units 64.1% Renter Occupied Mousing Units 29.9% Vacant Housing Units 6.1% 2024 Housing Units 71,Bg9 Owner Occupied Housing Units 66.5% Renter Occupied Housing Units 21.9% Vacant Housing Units 5.6% 2029 Housing Units 75,133 Owner Occupied Housing Units 68.8% Renter Occupied Mousing Units 25.8% Vacant Housing Units 5.4% Oats NOW.HouseWd population induises pers4ni.not residing in group quarters. Average Household Size is the household population divided by total households. persons in families include the householder and persons related to me householder by birth,manage,or adoption Per Cavga Income represents the income received by all persons aged IS,years and over divided by the total population. Swnt*:Est forecasts ror 2024 and 2029.U.S.Census Buieau 2000 and 2010 decennial c n:. =1 tw Esn into 2020 deodraphy. 3anuary 10,2025 25-2759 McKinlay & Klundt Appraisal Company Page 39 0 ggil 1 Market Profile rrtf SCARCE Of wrrfRf 6 Counties Prepared by Esn Cassw County,ID(16031)et al_ Geography: County ID(16031),I0(... 2024 Houaabelds by Iweawe Household Income Base 67,862 <$15,000 7.3% $15,000- $24,999 7.3% $2S,000-$34,999 9.9% S35.000-$49,999 11.1% $50,000-$74,999 18.0% $75,000-$99,999 15.7% $100,000-S149,999 17.3% $150,000-S 199,999 6.6% $200,000+ 6.2% Average Household Income $88,961 20"Households by Income Household Income Base 11,108 <$15,000 5.7% $15,000-$24,999 S.b% $25,000- $34,999 7.8% $35,000-$49,999 9.5% $50,000-$74,999 17.1% $75,000- $99,999 16 7% $100,000-$149,999 20.7% $1501 000-$199,999 9.1% $200,000• 7.9% Avr aqr Hrnicehold Income $105,030 2024 Owner Occupied Housing Units by Vslao Total 47,779 <$50,000 6.2% $50,000- $99,999 4,5% $100,000-$149,999 5.9% $150,000•$199,999 7.0% $200,000-$249,999 9.7% $250,000-$299,999 8.4% $300,000-$399,999 21.6% $400,000-$499,999 14-6% $500,000-$749,999 16.1% $750,000-S999,999 4.0% $1,000,000-$1,499,999 1.0% $1,5001000• $11999,999 0.6% $2,000,000+ 0.4% Average Horne Value $378,566 2029 Owner Occupied Housing Units by Value Total 51,714 <$50,000 3.7% $50,000- S99,999 2.7% $100,000-$149,999 3.0% S150,000-S199,999 3.S% $200,000-5249,999 5.1% $250,000-$299,999 4.2% $300,000-$399,999 14.3% $400,000-S499,999 18.4% $500.000-S749,999 31.9% $750,000-$999,999 8.6% $1,000,000-$1,499,999 1.8% S1,500,000-$1,999,949 1.5% $2,000,000 r 1.4% Average Home Value $521,581 Data NOW.Income represents the ptecedrng yeat,expressed m current dollars. ttou5ehuld vicunie indudr.wage and salary earrings,urtere•.t drvdk-,+s,net rents,pensions,W and welfare payments,ch+ld support,and alimony. Source:Est I forecasts for 2024 and 2029.U.S.Census Buieau 2000 and 2010 decent, ,: -,d by Esn mto 2020 deoaranhv. 3anuary 10,2025 25-2759 McKinlay & Klundt Appraisal Company Page 40 0 ggil profile rNr tCAFMCE Of wrtr•a 6 Counties Prepared by Esn Cassia County,ID(16031)et al. Geography:County ID(16031),I0(... Median Household Income 0... $67,368 2029 $80,101 Median Home Value 20_: $338,667 2029 $473,066 Per Capka Income 2024 $31,S60 •'r1•14 $37,320 Median Aye 2010 33.8 2020 35.2 2074 35.5 ?0?9 36.3 2020 Population by Age Tutdl 181,276 0-4 7.0% 5-9 8.0% 10-14 8.6% 1S-24 13.S% 25-34 12.5% 3S-44 12.5% 45-54 10.3% SS-64 11.5% 65-74 9.2% 7S-84 4.9% 85+ 1.9% IS + 71.5% 2024 Population by Age I ltdi 191.421 0-4 7.1% 5-9 7.5% 10- 14 8.0% 15-24 14.4% 25- 34 12.4% 35-44 12.9% 4S-54 10.8% 55-64 10.4% 65-74 9.4% 15-84 5.3% 8S r 2.0% 18 4 72.7% 2029 Population by Age Tut.it 200,231 0.4 7.1% 5-9 6.9% 10-14 7.3% 15-24 13.9% 25-34 13.0% 35-44 12.9% 45-S4 11.5% SS-64 9.6% 65-74 9.5% 75-84 6.1% 85+ 2.2% I8+ 74.2% 8ounm Est forecasts for 2024 and 2029.U.S.Census Bureau 20DO and 2010 6ecern n1 by Esn into 2020 ae00raohy. January 10,2025 25-2759 McKinlay & Klundt Appraisal Company Page 41 0 ggil 1 Market Profile THE SCreNCE Of wnraa 6 Counties Prepared by Esn Cassw County,ID(16031)et al_ Geography: County ID(16031),W(... 2020 Population by Sex 1 I• 91,019 90,197 2024 Population by Sex 97,480 93,941 2029 Population by Sex a.i. 101,283 96,948 Deb Notes Persons of Hispanir Origin may be of any rare. The Divers"Index measures ttw pr-nbabrhty that two people from the came area will be trom different race/ettwK groups Sere":Est l forecasts for 2024 and 2029.U.S.Census Bureau 2000 and 2010 decennial ,•a converted by Esrl into-mill aeoaiaohv. Unwary 10,2025 25-2759 McKinlay & Klundt Appraisal Company Page 42 0 ggil 1 Market Profile THE SCrENCE OF WrrtaE 6Counties Prepared by Csn Cassia County,ID(16031)et al_ Geography: County ID(16031),I0(... 2020 Population by Relationship and Household Type i.,in, 181,776 In Housetwids 98.6% Householder 3S.4% Opposite-Sex Spouse 18.8% Same-Sex Spouse 0.1% Opposite-Sex Unmarried Partner 2.4% Same-Sex Unmanned Partner 0.1% Biological Child 30.3% Adopted Child 0.8% Stepchild 1.6% Grandchild 2.4% Brother or Sister 1.0% Parent 0.9% Parent-in-law 0.3% Son-in-law or Daughter-m-law 0.5% Other Relatives 1.2% Foster Child 0.1% Other Nonietatwes 2.7% In Group Quarter, 1.4% Institutionalized 0.9% Nuninzutubonalved 0.5% 2024 Populat-, 25+by Educational illinainntent 1 otal 120,769 Less than 9th Grade 7.2% 9th- 12th Grade,No Diploma 6.9% High School Graduate 25.9% GED/Alternative Credential 4.9% Some College,No Degree 21.5% Assonate Degree 11.0% Bachelor's Degree 14.0% Graduate/Professional Degrer 8.4% 2024 Population 1S+by Marital Status total 148,258 Never Married 27.2% Married 57.3% Widowed 5.6% Divorced 9.9% 2024 CiwMan Population 16+ in Labor Force Civilian Population 164 90,956 Population 16+ Employrd 97.7% Population 16+Unemployment rate 2.3% Population 16-24 Employed 17.6% Population 16-24 Unemployment rate 5.2% Population 25-54 Employed 61.1% Population 25-54 Unemployment rate 1.8% Population SS-64 Employed 14.0% Population 55-64 Unemployment rate 0.4% Population 651 Fmployrd 7.1% Population 65+ Unemployment rate 2.5% Source:Es,i tartcasts ror 2024 and 2029.U.S.Census Bureau 20DO and 2010 decent,,! -,d by Esn into 2020 deo0raphv. 3anuary 10,2025 25-2759 McKinlay & Klundt Appraisal Company Page 43 OesC - Profile THE fCrENCE Or WHERE 6Counties Prepared by Csri Cassw County,ID(16031)et al_ Geography: County ID(16031),I0(... 2024 Employed Population 16+ by Industry 88,878 Agriculture/Minoru 9.7% Construction 8.0% Manufacturing 12.3% Wholesale Trade 2.0% Retail Trade 12.2% Transportation/Uhlities 5.7% Information 1.1% Finanre/lncuranre/Real Estate 3.7% Services 41.3% Public Adrmm:tratron 4.0% 2024 Employed Population 16+ by Occupation K I 88,878 White Collar 52.0% Manaaement/Business/Financial 15.4% Professional 19.4% Sales 8.1% Administrative Suppoit 9.1% Servnres 15.8% Blue Collar 32.2% Farming/Forestry/Fishing 4.8% Constr uctlon/Extiaction 5.7% Installation/Maintenance/Repair 4.2% Producbon 6.4% Transportation/Material Movina 11.1% 2020 Households by Type Total 64,161 Married Couple Households 53.5% With Own Children <10 22.9% Without Own Children<18 30.7% Cohabitatrna Couple Households 7.0% With Own Children<18 3.1% Without Own Children <18 4.0% Male Householder,No Spouse/Partriei 17.5% Living Alone 11.2% 65 Years and over 3.9% With Own Children <18 2.0% Without Own Children<18,With Relativr. 2.8% No Relatives Present 1.6% Female Hou•.eholdet,No Spouse/Partnrr 21.9% 1 mng Alone 12.0% 65 Years and ovei 6.7% With Own Children <18 4.6% Without Own Childfen<IS,With Relatives 4.3% No Relatives Present 0.9% 2020 MowdwWs by Size Total 64,161 1 Person Household 23.2% 2 Person tsousehold 33.6% 3 Person Household 14.3% 4 Person Household 13.1% 5 Person Household 8.2% 6 Person Household 4.6% 7+Pelson Household 3.1% Source:Es,I rufEcasts ror 2024 and 2029.U.S.Census Bureau 20DO and 2010 deceni,.? -1d by Eui into 2020 aeoaraDhy. 3anuary 10,2025 25-2759 McKinlay & Klundt Appraisal Company Page 44 0 ggil 1 Market Profile THE fCAENCE Of WrateE 6 Counties Prepared by Esn Cassw county,ID(16031)et al_ Geography: County ID(16031),I0(... 2020 Households by Tenure and Mortgage Status I"taI b4,161 Owner Occupied 68.2% owned with a Mortgage/Loan 44.7% Owned Free and Clear 23.5% Renter Occupied 31.8% 2024 Af'fordoWlityr Mortgage and Wealth Housing Affordabdity Index at Percent of Income for Mortgage 31.5% Wealth Index 75 2020 Housing Units By Urban/Rural Status i--te- 68,2% Urban Housing Units 53.2% Hi.j.al Hiiu l j Units 46.8% 2020 Population By Urban/ Rural Status i.ta. 181,276 Urban Population 52.7% Rural Popuiatrnn 47.3% Data NOW.,Households with rhderen include any households with people under age IS,related or not. Multxgenerahorwl households are families with 3 ur more parent-child relationships-Unmarred partner households ate usually classified as nonfamNy households unless there is another member of the household related to the householder MulhgeneraPorwl and unmarried partner housenords are reported only to the tract level.Esn estimated black group data,which is used to estimate polygons or nnn-standard geography. Sour":Est I faKasts tot 2024 and 2029.U.S.Census Bureau 20M and 2010 decenj_! -,d by Est,into 2020 aeoarantw. 3anuary 10,2025 25-2759 McKinlay & Klundt Appraisal Company Page 45 0 ggil 1 Market Profile trir SClftYCr Of wtrraa 6 Counties Prepared by Esn Cassia County,ID(16031)et al_ Geography: County ID(16031),I0(... Top 3 Toption y Sa fti-nb 1. Middleburg (4C) 2. Prance Living(61D) 3. Southern Satellites(10A) 2024 Consumer Spending Apparel&Services: Total S S126,857,920 Average Spent $1,869.35 Spending Potential Index 78 Education: Total S $85,170,542 Average Spent $1,263.90 Spending Potential Index 73 Entertamment/Recreabon: Total S S223,796,744 Average Spent $3,297.82 Spending Potential Index 81 Food at Nome: Total S S395,723,576 Average Spent $5,831.30 Spending Potential Index 80 Food Away from Home: Totals $210,638,902 Average Spent $3,103.93 Spending Potential Index 80 Health Care: Total S S445,805,202 Average Spent $6,%9.29 Spending g Potential Index 85 NH Furnishings A Equipment: Total$ $174,026,774 Average Spent $2,S64.42 Spending Potential Index 81 Prrconal Carr Products A Servnrrs:Totals $51,676,836 Average Spent $761.50 Spending Potential Index 76 Shelter. Total$ $1,372,592,148 Average Spent $20,226.23 Spending Potential Index 76 Support Payment,/Cash Contributions/Gifts in Kind:Total; S200,465,633 Average Spent $2,954.02 Spending Potential Index 84 Travel: Total$ S159,076,712 Average Spent $2,344.12 Spending Potential Index 77 Vehicle Maintenance&Repanrs:Total S $83,491,%S Average Spent $1,230.32 Spending Potential Index 83 Date Nate Corrswncr sperWuty shuws ole emwo:sycet on a venety of uucd,end xrwces by twusehoids that icside n,the dreg. Cxpenddures ate shown by broad budget categories that are not mutually exclusive Consumer spending does not equal business revenue. Total and Average Amount Spent Per Household represent annual figures. the Spending Potential Index represents the amount spent in the area relative to a national average of l Ott Source:Consumer Spending data are derived from the 2019 and 2020 Consumer Expenditure Surveys,Bureau of tabor Statistics.Esn. Source:Esi l forecasts for 2024 and 2029.U.S.Census Bureau 2000 and 2010 deceno , _: n:..rod by Esri into 202U deo0tanhy. January 10,2025 25-2759 McKinlay & Klundt Appraisal Company Page 46 esriRetail Market Potential tHFSCrarrca Of wrffas 6Counties Prepared byEsti Cassia County,iD(160 31)et at Geography'County Demogrepw somas y 2024 2e20 Populat,on 191,421 200,231 Poputatwn 18, 139,101 248,667 HousenoKlS 67,862 71,108 Median Household Income $67.360 $80,101 Expected Number of Pereewt of Product/Consumer behavior Adults or HHs Adi lts/Nils Him Apparel (Adults) bogy I t4111 :Uothing/12 Mo 89,231 64.1% 102 Bought Women's Clothing/12 Mo 72,723 52.3% !00 Bought Shoes/12 Mo 105,687 76.o% lot Bought fine leweiry/12 Mo 29,296 21.1% 97 Houont Watch/12 Mn 17,472 12,6% 95 Automobiles(Households) HH Owns or Leasci Any Vehicle 63,391 93.4% 103 HM Bought or Leased New Vehicle/12 Mo 6.135 9.0% 98 Automedve Aftenrsairket(Adults) Bought Gasoline/6 Mo 126,983 92.7% 103 Bought of Changed Motor Oil/12 Mo 90,870 58.1% 109 Had vehicle Tune-tW12 Mo 33,181 23.9% 99 beverages(Adult) Drank Nun-Diet(Regular)Cola/6 Mo SS,436 39.9% 107 Drank Beer or Ale/6 Mo 52,300 37.6% 98 Cameras(Adults) Own Digital Point and Shoot Camera/Camcorder 13,298 9.6% 98 Own Digital SLR Camera of Camcorder 13,672 9.8% 95 Pi rated Drgdal Photos/12 Mo 37,18b .b.7% 103 Cell Phones(Adult/Households) !ought Cell Phone/12 Mo 50,965 36.6% 101 Have a Smaitphone 131,101 94.1% 100 Have Android Phone(Any Brand)Srnartphone 58,907 42.3% 110 Have Apple,Purser Inmartphone 74,668 S i.7% 94 HM Owns 1 Cell Phone 19,078 28.1% 94 HH Owns 2 Cell Phones 27,319 40.3% 102 HH Owns 3+Cell Phones 20,251 29.6% 104 HH Has Cell Phone Only(No Landtrme Telephone) 50,438 74.3% 103 Computers(Households) HH Owns Computer SS,718 82.1% 98 MM Owns Desktop Computer 26,016 38.3% 99 HM Owns Laptop of Notebook 45,689 67.3% 97 HH Owns Apple/Mac Brand Computer 14,110 20.8% 84 HH Owns PC/Non-Apple Stand Computer 47,968 70.7% lot MH Purchased Most Recent Home Computer at Store 25,378 37.4% 100 HH Purchased Most Recent Horne Computer Online 17,686 26.1% 9S HM Spent$I-499 on Most Recent Home Computer 10,478 15.4% 112 HH Spent SSOO-999 on Most Recent Home Computer 12,666 18.7% 98 HH Spent$IK-1499 on Most Recent Home Computer 7,032 10.4% 91 HM Spent$1500-1999 on Most Recent Home Computer 2,193 3.2% so HH Spent$2K+on Most Recent Horne Computer 3,464 5.1% 84 Dery Note:An MPt(Harket Potertrai Index)manures the telatire likefirooa of the adults or households in Vie specified trade area W aenrjn teltsn COIYumK DNwior or pusC morn patterns compared to the U.S.An HP1 at 100 tepresents the U.S.aversae. seerw.These a"are based upon national 0,004,1sitles to use venous products and se"ices,400440 to bCal demographic compasawn.Usage Lists weir coaected ov MRI-Stmrnons in a nationally rev"msritatnv survey of U 5-households Est lorecam for 2024 and 2029. January 10,2025 25-2759 McKinlay & Klundt Appraisal Company Page 47 esriRetail MarketPotential rME SCIENCE Of wrraaE' 6Counbes Pt spar ed by Estt Cassia County,10(160 31)et al. Geography:County Expected Number of Percent of Product/Consumer Behavior Adults or HHs Adults/MHs Kft Convenience Stores(Adults) Shopped at C-Store/6 Mo 96,434 69.3% 106 Bought Brewed Coffee at C-Store/30 Days 18.464 13.3% I06 Bought Cigarettes at C-Store/30 Days 10,119 7.3% 120 Bought Gas at C-Store/30 Days 64,716 46.5% 116 Spent$1-19 at C-Store/30 Days 9,217 6.6% 98 Spent S20.39 at C-Store/30 Days 11,725 8.4% 101 Spent$40-50 at C-Store/30 Days 9,213 &6% 1DO Spent SSl-99 at C-Stole/30 Days 8,964 6.4% 114 Spent 1100+at C-Store/30 Days 38,338 27.6% 117 Inta►talelownt(Adult) Attended Movie/6 Mo S8,940 42.4% 96 Went to Live Theaterl12 Mo 10,989 7.9% 91 Went to Bar or Npht Club/12 Mo 23,832 17.1% 97 Dined Out/12 Mo 77,809 55.9% 1DO Gambled at CaswW12 Mo 15,774 11.3% 95 Visited Theme Park/12 Mo 20,277 14.6% 93 Viewed Movie(Video•on-Demand)/30 Days I1,337 8.2% 87 Viewed TV Snow(Video-on-Demand)/30 Days 7,989 5.7% 87 Used Internet to Download Movie/30 Days 7,670 5.5% 88 Downloaded Individual 5ong/6 Mo 25,926 18.6% 96 Used lnternet to Watch Howe/30 Days 43,964 3I.5% 92 Used Internet to Watcn TV Program/30 Days 28,815 20.7% 92 Played(Console)video or Electronic Game/12 Mo 17,Z83 12.4% 98 Played(Portable)Video of Electronic Gaerrie/I2 Mo 9,512 6.8% 99 Flnandsl(Adults) Have 1st Home Mortgage 52,39S 37.7% 103 used ATM or Cash Machtne/12 Mo 83,780 60.2% 9.9 Own Any Stock 17,693 12.7% BS Own U.S.Savings ar nds 9,682 7.0% 94 Own Stores in Mutual Fund(Stoclrs) 16,970 12.2% 91 Own Shares in Mutual Fund(Bonds) 10,326 7.4% 89 Have Interest Checkup Account 54r211 39.0% 30o Have Non-Interest Checking Account 53,032 18.1% 10:) Have Savings Account 100,167 72.0% 99 Have 401(k)Retirement Savings Plan 34,118 24.5% IGO Own or Used Any Credit/Debd Card/12 Mo 128,903 92.7% 100 Avg 11-110 Monthly Credit Card Expenditures 15,215 10.9% 107 Avg$111-225 Monthly Credit Card Expenditures 9,639 6.9% 10o Avg$226-450 Monthly Credit Card Expenditures 12,902 9.3% 106 Avg S451-70D Monthly Credit Card Expenditures 12,745 9.2% 99 Avg S701-1000 Monthly Credit Card Expenditures 10,134 7.3% 93 Avg$1001-2000 Monthty Credit Card Expenditures 15,435 11.1% 93 Avg S2001+Monthly Credit Card Expenditures 14,624 10.7% 65 Did Banking Onlute/12 Mo 77,739 S5.9% 98 Did Banking by Mobile Device/12 No 65,698 47.2% 98 Deft Mess-An MPI�Harket Potertrai tnde.)measures the relative likedhood of the adults or households in Lie apeClned trade area W a+npd celtan CO"=Msr nehevior or pu rchimi g prtarns Conwred to the U.S.An HM at 100 represents tha U.S.average. Soorw.There a"are boned upon national 0,00 10%to use various products and swvices,400400 to bW donxigrap hir coivipdsxian.Usage data vier♦roae(ted ov MRI-Stimtoris in a nationally renresentatm survey of U 5-househtlde Est torecam for 2024 rid 2029. January 10,2025 25-2759 McKinlay & Klundt Appraisal Company Page 48 esri Retail Mark- Potential TMa fetfleCE Of wfrtai 6Counties Pi epat ed by Esti Cassia County,10(160 31)et at. Geography:County Expected Number of Percent of Product/Consumer Behavior Adults/HHs Adults/HHs 111111" Grocery(Adults) Hill Used BieiWti No f4,714 95.4% 101 MM Used Chicken(Fresh or Frozen)/6 MO 53,126 78.3% 102 HH Used Turkey(Fresh of Ffu2en)/6 No 14,401 21.2% 103 HH Used Fish or Seafood(Fresh or Frozen)/6 No 38,967 57.4% 98 HH Used Fresh Fruit or Vegetables/6 No 60,336 88.9% 100 HH Used Fresh Milk/6 No 57,878 85.3% 104 HH Used Organic Food/6 No 14,672 21.6% 85 Health(Adults) Exerriw at Home 2+ times/Wk 64,972 46.7% 96 Exercise at Club 24 TimeS/Wk 14,434 10,4% 89 Visited Doctor/12 No 111,006 79.9% too Used Vitamins or Dietary Supplements/6 No 89,an 64.6% 98 Home(Households) HH Did Home ImproverrKmVI2 No 26,556 39.1% 106 HH fried Maid/Prof C,In Svc(+ Furn/Carpet)/12 No 22,601 33.3% 95 HH Purchased Low Ticket HH FumishwVI2 040 14,795 21.8% 97 MM Purchased 81 Ticket unit Futnishirg/12 140 16,983 25.0% 97 HH Bought Small Kitchen Appitance/12 No 16,909 24.9% too HH Bought large Kitchen Appbance/12 No 11,262 16.6% 103 Insurance(Adults/Households) Currents Carry Lie Insurance 73,785 53,0% 104 Personally Carry Any MedfHosp/Accident ln%w 118,9S7 85.S% 100 Homeowner Carnes Home/Personal Property Insurance 90,309 64.9% 107 Renter Carnes Home/Reis Property Insurance 15,428 11.1% 87 HH Has I Vehicle Covered w/Auto insurance 20.505 30.2% 94 HH Has 2 Vehicles Covered w/Auto Insurance 21,610 31,8% 101 HH Has 3+Vehicles Covered w/Auto Insurance 20,178 29.7% Its Pets(Households) HH Owns Any Fit 39,08S S7.6% 114 HH Owns Cat 18,881 27.8% Its HH Owns Dog 30,766 45.3% Its Psychographics(Adults) Represents adufts who 'completely agree"with the statement; t,:drip f- a oyi Grid 20,93S 15.1% BB Buying American Is Important:4-Apr Cmpl 45,976 33.1% 114 Buy Based on Quality Not Price.4-Agr Cmpl 18,963 13.6% 94 Buy on Credit Rather Than Wait:4-Agr Cmpl 16.430 11.8% 9S Only Use Coupons Brands Usually Buy*4-Agr Cmpi 14,439 10.4% 102 Will Pay More for Env Safe Prods:4-Agr Cmpl 13,t7S 9.S% 84 Buy Based an Pt we Not brands:4-Agr Cmpl 38,561 27.9% I05 Aeadiog(Adults) Bought"ital Book/12 No 24,231 17.4% 95 Bought Hardcover Book/12 No 36.331 26.1% 97 Bought Paperback Book/12 No 46,742 33.6% 98 Read Daily Newspaper(Paper Version) 14.129 IM2% 94 Read Digital Newspaper/30 Days 74,077 S3.3% 91 Read Magazine(Paper/Electronic Vers)/6 No 118,452 85.2% 98 Dena Mass.An MPI�Narkst Poternal Index)manures the raistire rikefrhood or the adults or holasholds in Vie specified trade area W eon On teltan coMUTK nehavbr or purchasing petcerns compared to the U.S.An MPI at 100 represents ttta U.S.average. loorw.These data are based upon national 0100 hs41"to use various Products and uenaes,400400 to told demographic compasawn.Usage Lists vier♦roaected ov MRI-Sumcom in a rWfonalN rev"msi ntstm survey of U 5-househoids Est tortcasts for 2024 and 2029. 3anuary 10,2025 25-2759 McKinlay & Klundt Appraisal Company Page 49 esriRetail MarketPotential rMstctarresoc WHIll 6 Counties Prepared by"to Cassia county,10(160 31)et al. Geogravhy:County Expected Number of Percent of Product/Consumer Behavior Adults or MMs Adults/HHs WX Restaurants(Adults) Went to Family Restrnt/5teakHse/6 Me 101,425 72.9% 102 Went to Family Restrat/StealtHse 4+Time5/30 Days 32,929 23.7% 102 Went to Fast Food/Drove-In Restaurant/6 Mo 128,053 92.1% 101 Went to Fast Food/Dftve-In Rest 9+Times/30 Days 57,579 41.4% 104 Ordered Eat-In Fast Foodi6 Me 41,870 30.1% 104 Ordered Home Delivery Fast Food/6 Me 16,874 12.1% 94 Take-Out/Dine-Thtu/Curbside fast Food/6 Mu 79,228 S7.0% too Ordered TakrChrt/Walk-in Fast Food/6 Mo 28,87S 20.8% 91 Television&Electronics(Adults/Households) Own Tawet 77,468 55.7% 97 Own E-Render 19,332 13.9% Be Own E-Reader/Tablet:Apple read 46,584 33,5% 91 HH Owns internet Corvuctable TV 28,383 41.8% 102 Own Portable MP3 Player 12,806 9.2% 103 HH Owns t TV 11,29S 16.6% 90 HH Owns 2 TVs 18.518 27 3% 98 HH Owns 3 TVs 1S,480 22.8% 102 HH Owns 44 TVs 16,870 24.9% 112 HH Subscribes to Cable TV i8,230 26.9% 87 HM Subscribes to Fiber Optic TV 2,323 3.4% 67 HH Owns Portable GPS Device 13,812 20.4% 110 HH Purchased Video Game System/12 Me 4,S03 6.6% es HH Owns Internet Video Device for TV 36,361 S3.6% 101 Travel(Aduts) Took Domestic Tnp in Continental U.S./12 Me 80,720 58.0% 99 Took 3+Domestic Non-Business Tnps/12 Me 22,175 IS.9% 98 Spent g2-999 on Domestic VacabonV12 Me 17,060 12.3% 100 Spent$IK•1499 on domestic Vocatiorts/I2 Me 91072 6.5% 95 Spent S1500-1999 on Domestic Vacabons/12 Mu 6,022 4.3% 97 Spent$2K•2999 on Domestic Vacations/12 Me 7,665 5.5% 106 Spent S3K+on Domestic Vd ationV12 Mo 13,281 9.S% 99 used IntrrK Travel Site for Domestic TrW12 Me 7,550 5.4% 87 Took Foreign Tnp(Intl Alaska&Hawaii)/3 Yrs 3S,247 25.3% 64 Took 3+Foreign Trips by Plane/3 Yrs 5,633 4.0% 74 Spent 41-999 on Foieign Vacations/12 Me 6,799 4.9% 88 Spent SiK-2999 Oct Foreign Vacations/12 Me 4,129 3.0% 89 Spent S3K+on Foi"n Vacations/12 Mu 6,466 4.6% 76 Used General Travel 54e:Foreign Trip/3 Yrs 5,666 4.1% 73 Spent Night at Hotel of Motel/12 Me 69,993 50.3% 99 Took Cruise of More Than One Day/3 Yrs 10,946 7.9% 93 Membet or Frequent Flyer Program 31,601 22.7% 92 Member of Motef Rewards Program 38,425 27.6% 95 Dena Meae-An MM�14&Aat Poteroal index)measures the relative IikeilFoott or the aoutts or h0usitholds in Vie speclned trade area to e4npd celtan Co"MR,Dehavtnr or purchasnp petcerns tampered to the U.S.An MM at 100 tepresents in*U.S.average. Soorw.These a"are bow upon national 0100 a4lae to use various prplutts and Urvuces,400400 to bW demographic composawn.Usage data winr roeetxed by MRI-Strmtons in a nationally renrearitairy survey of U 5-households Esn torecam for 2024 rid 2029. January 10,2025 25-2759 McKinlay & Klundt Appraisal Company Page 50 Oesei I Business Summary THE SCIENCE Of WHERE 6 Counties Prepared by Ezn Casma County, ID(160.31)et al. Geography: County Data For ap businesses to area >tp(1�0i1 Total Buunecc.., 7,347 Total Employees: 78,673 Total Populations 191,421 Employee/Popubton Ratio(per 100 Residents) 41 ousblaMN Nlgiayoee by NMCS Codas "Wobw 1ereem Ntaabw 'weaNR Agriculture,Iorestry,Fishing 6 Huntmq 302 4.1% ),126 4.0% Mining 10 0.1% 232 O.3% lltilafes 46 0.6% SOS 0.8% Construction 498 6.8% 2.915 3.7% Bulldnq Construction 164 2.2% 961 1.2% Heavy/Civil Eno Construction 50 0.7% 452 0.6% Specialty Trade Contractor 284 3.9% 11502 1.9% Mafwf6rtnuin9 324 4.4% 6.739 8.6% Wholesale Trade 367 5.0% 5.122 6.5% Durable Goods 211 2.9% 1.518 1.9% Nondurable Goods 141 1 9% 3,399 4 1-4 Trade Broker IS 0.2% 205 0.3% Retail Trade 979 13.3% 11,109 14.1% Moto) vehicle 6 Parts Drralets 169 2 3% 2,025 2.6% Euinr[ure 6 Home furnishings Stoles 46 0,7% 321 0,4% Electronics 6 Appliance Stores 24 0.3% 129 0.2% Sulldmg Mawtial&Garden Equipment S.Supials"Dealers 106 1.4% 1.131 1.44% rood 6 6-erage Sties 137 1 9% 2,955 3.8% Health 6 Personal Care Stores 62 1.1% 1.213 1.5% Gasoline Stations 6 Fuel Dai lars 98 1.3% 726 0.9% Clotting,Ckuhing Accessories,Shwa and 3asialry Stores 71 1.0% 363 O.s% Sporting goods,Hobby, Book,6 Music Stores 152 2 1% 903 1,1% Garaaral Merchandise Stores 91 1.2% 1.363 1.7% Transportation 6 Warenousing 272 3.7% 3.271 4.2% Truck Ttansao.tatwn 131 1.9% 2,030 2.6% Information 130 1.8% 1.485 1.9% Finance l Insurance 273 3.7% 1,so6 1 9% Central BanklCredR Intwmadiahon R Rotated Artvdies 12S 1.7% 9l5 1.2% Securities 8 Commodity Contracts 59 0.8% 210 0.3% cunds,Trusts 6 Other Ftnancral Vehicles 89 1.2% 381 0.5% Real Estate,Rental 8 keening 277 3.8% 1.255 1.6% Professional,Srlentifir A Tarh$ar-re4 442 6-0% 2,178 3.0% Leo Services 95 1.3% 415 0.5% Management of Compariwc 6 Enterprises 12 0.2% 06 0,1% Adnunlstretive,Support 6 W"#Management Swvires 201 2.7% 1,125 1.4% Educational Services 211 2.9% 6.536 8.3% Source:Copyright 2024 Date Axle,Inc.All rants reserved.esn Total Population fore-[,.r :r;I Date Nob.Data on me Buslrseae Summery report Is caia3latad using Ea-'a Data allocation method n`ich uses census block group:to a4mate businrs summary data to custom areas. January 10,2025 25-2759 McKinlay& Klundt Appraisal Company Page 51 Wesin Business Summary rfff SCIENCE Of W"Eaf 6 Counties Pr"md by Fstt Cassen County, ID(16031)et al. Geography: County businesses EmPlayees by MAICS Codes Number Percent Number ►.rant Health Caro 6 5oc.a1 Assirtance 718 9.8% 13,234 16.841 Amubulatc v HeaIM Care 463 6.3% 5,404 6.9e- Hospltol 42 0.6% 4.020 5.1% Nui5-%IResldeata!Care 11 1.0% 2.050 2.614 Social Assestance 142 1.9% 1,760 2.2% Arts,Fntertainment i Recreation I54 2.1% 2,053 7.6% Accommodation 6 Food Services 4" 6.4% 6,346 8.1% Accommodation 82 1.1% 1.213 1.5% Food Servrcec•Drinking Places 386 S.3% S,133 6.S% other Services 1except Putihc Admlmst st c 931 12.6% 4.100 5.2% Repair 6 Maintenance 250 3.4% I'm 1.6% Aut•]m(A,.Q R.pav•Ma,ritenanre 176 2.4% 003 1.1% Ppr40nal A Iaundcy Service 234 3.2% 1,020 1.3% Civic and other Orgs 453 6.2% 1.793 2.3% Public Adrn stratlon 484 6.6% 5,307 6.81% Und"wfied EstatAiShments 243 3.31% 82 0.1% Total 7,347 100.0% 78,621 1D0.0% Se411eet Copvnght 2024 Dote Arte,Inc.Ali fights reserved.fin Tote)Populatwn forecasts for 2024 Date Note:data can the 6usirew Sure nary report is Calculated usnq Eert's Deta ebocolten semod January 10,2025 25-2759 McKinlay& Klundt Appraisal Company Page 52 "esn Business Summary THE SCIENCE Or WHERE 6 Countlr Prepared by Fsrr Cassia County,1D(16031)et al. Geography:County aus4ne46o8 Employees by SIC Codes Number Percent Number percent Agriculture&Mining 411 5.1% 3,826 4.9% Construction 473 6.4% 2,809 3.6% Manufacturing 286 3.0% 6,801 8-7% Transportacwn 303 4.1% 3,401 4.3% r:ommunicatron 83 1.2-06 936 1.2% Utilcv 39 0.9% 700 0.9% Wholesale Trade 372 5.1% 5,191 6-6% Retail Trade Summary 1,403 19.1% 16,463 20.9% Home Improvemon. too 1.5% 11142 1.4% Iyeneral MerLhandive Stores 30 0.7% 1,199 1.3% food stoie5 164 2.211i'li, 3,147 4.0% Auto Dealers 6 Gas Stations 261 3.5% 2.721 3.5% AVpael6 Accessory Stuie5 54 0.7% 276 0.3% FurnAure a Home Furmsfartg5 90 1.2% 523 0.7% Eaoog&Drinking place. 378 5.1% 5,045 6A% Miscellarioous Retail 2" 4.1% 2,408 3-1% Finance,Insurance,Real Evtats Summery 512 7.0% 2,702 3.4% Banks,Savings 6 Lending Institutions 132 1.8% 943 1.2% Securities Broken S4 0.7% 179 0.2% tnsuience Cartleis 6 Agents 87 1.2% 376 0.5% Real Estate,Holding,other Investment Offices 2)9 3.31! 1,204 1.5% Services Summary 2,703 36.8% 30,345 38.6% Hotels&Lodging 62 1. % 1,213 1.5% Automotive Services 222 3.0% 1,048 1.3% Movies 6 Amusements ISO 2.0% 2,01S 2.6% Health Services 535 7.3% 10,607 13.8% i agar$erv.LeS 84 1.1% 333 0.4% Educatron Institutsons 6 Libraries 190 2.7% 6,S18 6-3% Other Services 1,411 10.5% 8.411 10 7% Govemment 490 6.7% S,363 6-8% Unctacy.twd FuaMlshmantc 244 3.31. w 6-81v Total6 7.347 100.0% 78,621 100.0% Source:Capyrpht 2024 Date Airle.Inc.All nohts reserved Esn Total Population forecasts Ina:!r_i Data 1164a:Data on the Business Summary re?on is calculated using Esi l's Data allocatton method v:r.-, c •�'m areas. January 10,2.025 25-2759 McKinlay& Klundt Appraisal Company Page 53 �esri• rw SCIENCE of WHEN* 6 Counties Prepared by Esn Cessm County,ID(16031)et at. Geography:County ID(16O31),IE4 .. t oo~0" 2010 Ppulaton 161,297 2020 Population 181,276 2024 Population 191,421 2029 Population 200,231 2010.2020 Annual Rate 1.05% 2020.2024 Annual Rate 1-29% 2024-2029 Annual Rate 0.90% 20M Male Populaton 50.2% 2020 Female Popk"tin- 49.8% 2020 Median Age 35.2 2024 Male Population S0.9% 2024 Female Pooulaiton 49 1% 2024 Median Age 3S.S In the identified area,the current yeai population is 191,421.In 2020,the Census count in the area was 181,276. The rate of charge since 2020 was 1.29%annually.The five-year projection for the population in the area rs 2O0,23I representing a change of 0.90%annuafry from 2024 to 2029.Currently,the polxdatton is 50.9%male and 49.1%female. Median Age 'tie arle in this area rs 35.5,compared to U.S.median ape of 39-3. 1ouseholds 2024 Wealth Index 75 2010 Households 58,372 2020 Households 64,161 2024 Households 67,862 2029 Households 71,108 2010-2020 Annual Rate 0.9s% 2020-2024 Annual Rate 1.33% 2024-2029 Annual Rate 0.94% 2024 Average flousehold Sete 2.78 The hixtsehold count in this area has changed from 64,161 in 2020 to 61,862 in the current year,a change of 1,33%annually. The five-year projection of households s 71.106,a change of 0.94%annually from the current year total Average household size is currently 2-78, compared to 2.79 in the year 2020 The numoer of families in the current year is 47,084 in the spec•fred area. Dots Note;Income is expressed in current dorfars. Housing Affordabllty index and Percent of Intone for Mortgage caiotiattons are arty available for areas w"50 or more owner-occupied nousrno urns.The Ginn index rnemuree the extent to which the distrrtxtooi of income or cone -CP on among Ind•cduels or nuuse"oxh wtntsi an economy deviates tram a perfecVV equal dMtr otdoDn.A CiN index of 0 represarib panW eaualay,while an Index of 100 imrtaea par1W inecualay /Olaftaf V.S.[M4y4 BVfWY FSri fOrKailS fdr 202e Ind 2029 ESn rAnvlrtM frnFJ4 2C14�ntn i7a'�0r,y1•a0M rand rtn4J4 292n pets January 10,2025 25-2759 McKinlay & Klundt Appraisal Company Page 54 �esri• that SCIENCE of wHEtte 6 Counties Prepared by Esn Cessw County,ID(16031)et at. Geography:County tD(16031),ID(... Mortgage Incomar - - r rid Mortgage 31.5% Median Household Income 2uZ4 Median Hausel-iuld Income $67,368 2079 Median Household Income $80,101 2024-2129 Annual Rate 3.52% Avera/a 1leuoahow Itn eme 2024 Average Househoid income $88,961 2029 Aveirmp Household Income SIGS,030 2024-2029 Annual Rate 3.38% Nr dpult 1woelne 2024 Per Cap+ta Income $31,560 20"Per Capita Income $37,320 2024.2029 Annual Rate 3 41% OiIII IasA01t 2024 Gmi Index 39.6 IbaMboldt w bu mNe Current median household"come i5$67,368 in the area,compared to$79,068 for all U.S.households.Median household income is projected to be$90,101 on five years,compared to 191,442 all U-S-households. Current average household incomes$88,961 in this area,compared to$113,185 for all U.S.rhouseholds- Average household income rs projected to be$105,030 in five years,compared to S330,S81 for all U.S-households- Current pet capita"come is$31,560 in the area,compared to the U.S.pet capita Income of 543,829. The per tapda income is projected to be$37,320 in five years,compared to$51,203 for all U.S.households. 2024 Housing Affordability Index at 2010 Total Housing Units 63,279 1010 owner Occupied Housanq Units 39,6S4 2010 Renter Occupied Housing Units 18,716 2020 Vacant Housing Units 4,907 2020 Total Housing Units 68,296 2020 Owner Occupied Houvr q Units 43,750 2020 Renter Ocrupwd Housing Units 20,411 2020 Vacant Housing Units 4,13S 2024 Total Huusing Units 71,899 2024 Owner Occupied Housing Units 47,779 2024 Renter Occupied Housing Units 20,083 2024 Vacant Housing Units 4,037 2029 Total Housing Units 75,133 2029 Owner Occupied Haviiang Units S1,714 2029 Renter Occupied Housing Units 19,394 2029 Vacant Housino Units 4,025 Socioeconomic Status Index 2024 ti;at 1: Inarx 47.0 Currentty,66,5%of the 71,399 horsing units in the area are owner ocapnd; 27,9%,renter occupied;orbit 5.6%are vacant.Currently,in the U.S-,57.9%of the housing units in the area are owner occupted:32.1%are renter occupied;and 10-0%are vacant.In 2020,there were 68,296 housing units in the area and 6.1%vacant homing units. The annual rate of change in housing units since 2020 is 1.22%. Median horse value In tre area is$338,667.compared to a median name value of$355,577 for the V.5 In five years,median value is projected to change by 6.91%annuaily to S473,086. DW Note;Income is expressee In currcrt ddlnrs. Housing Affordability index are Pervert of income for Mortgage calculations are arty evalhabie for areas w"50 or more owner-occupled housing ur45.the Ginr irrdeir measures the extent to whrcrr Vie drs4rttiVtio+of income or conixi-g n arnorg Indrrmuals or nuuse"o" wltitsn an econorey deviators tram a parfecCV equal distrioxAmn.A Ciry index of 0 raprasonts partact actuality,while an index of 100 lmpaes"r1e0 ineryulay /Olfrtaf V.$.Cn_n4uS BHfWY fNr farKaalf nor 2024 Ind 2024 ESH(Anvlrla0 Cenf•Is 2414.nth 21a'�rY_gu•ppM and rtn4J4 202n data January 10,2025 25-2759 McKinlay & Klundt Appraisal Company Page 55 Key Facts Facts Counties G"rophy!County E DI n-Al KA --------------------------------- 1910421 0Mcdw, 32.5`-- $67,368 I 30.9% --------------------------------------------------------------------------- ------ ------------------------------------------------------------- & k k �a 52,0% 4d 4 32.2%Ral Rat 7,347 78,621 ........ tow Employer (L IL I 1S.8% INCCWE 202414ameholds by Income(Emit ................. Ti.01019.stgrivisp-SW1100 11..&n,a"a W—P SIS.M1 Sz4,S,W 7 S2VM 5,35,000-949,999 S"O 00() $74 999 IW(r). $75,000-S99'999 157% 11 $67,368 $31,560 $189,875 510000) S149Q99 17]"V I 5150,000 5199,999 66% #Awfwl Vkk"I., LIDLI 01)', hxorne gars shoo di+ aiion from 1.:1 SouRa This irilographiL wniwns dow piuvaded by Emi 12024,202%Fwi Data AA612024� 0 2025 Evi 25-2759 McKinlay & Klundt Appraisal Company Page 56 ,J t T v%A . •��► South • • Labor ForceAnd Economic Profile Last Updated:January 2025 South Central Idaho Economic Overview Civilian Labor Force (Dec 2024) 108,356 Unemployment Rate (Dec 2024) 3.6% Population (2023) 216,595 Median Household Income (2023) $67.527 Per Capita Personal Income (2023) $70,087 Poverty Rate (2023) 11.4% rZ� A proud partner o/the Idaho Department of Labor Idbor.idaho.gov airs g L1++ amencanjobcenter network 90 Idaho Npam—1 of Lb.i.•n.,Vud nppodum,&*06vw held.rya•ptu.+dw 16—AW..a0hw 0&bma we swill.u0ew HprMl W?"kM WAO P06Y S.rv.ra 25-2759 McKinlay & Klundt Appraisal Company Page 57 South Central Idaho Lat>or Force,And Economic Profile.January 2025 1_ South Central Demographic Characteristics. 2023 5-Year ACS South Central Region State of Idaho United States N N (%) Gender IM1al1@ Female 103.870 49.3% 49-7% 505% Median age 36.6 - 37.1 38.7 INNEIRW Over 18 yP.ir; 153.600 72.9% 75.5% 77.8% and over 1WAMI Over 65 year; 34.1,)46 16.4% 16 6% 16-ft, ticenonfit Attainment(Population 25 years and Ovef) Less than 9DI glade 9,187 4.4% 21% 32% Hugh school graduate(with equivalencies) 3A 58-3 Some college.no degree .- 15.3% 16.3% 13.3% Associate's degree 13 343 - �-+ I -, , 13.7% 14-6% Graduate or professional degree 11 146 Median Household Income - -_7 $74.636 $78,538 Source.IIS Census Bureau.American Commundy 54"ay 5-Year Estimates 2. Labor Force Growth. December 2023 to December 2024 Labor Force Employment Unemployed Unemployment Rate DHrHrtrher 2024 11-I8 3547' 11--0 417 3.93ct 3 1:-) Deceml,er 2023 105.778 102.450 3.328 3.1% YoY N Change . -1 I k 4 r 1 Source-Idaho Department of Labor Local Area unemployment Statistics(LADS) Idaho Department of Labor.CommulncatKlrls&Research Page 2 of b 25-2759 McKinlay & Klundt Appraisal Company Page 58 South Central Idaho Labor Force And Economic Profile,January 2025 3. Seasonally-Adjusted Unemployment Rate. 2013 to December 2024 lee%-x.0en, Region —State of Idaho —United State3 90 60 r0 60 50 40 30 20 10 00 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 j:0 20 -0 20 13 14,L5 16 17 LB 19 20 21 22 23 24- 24. 24• 2,1 2* 24. 24, 24. 24- 24, 24, 24- I 0l 02 03 04 05 06 07 06 00 10 11 L2 —aapm 62 3V 33132129 26 27 51 34 35 3 31 31 32 3 33 34 35 35 35 35 37 36 I—sl�aarlaeno 61 48 411 3J3 3.2 29 2.9 53 36 27 31 33 3333 33 3.3 34 35 35 36 37 37 15 �une0a03rst4c T.d 63 53 49 •d 39 3.r 131 53 3R 3e 37 3913813,91 4 41 43 42141 41 L' 41 Source Idaho Department of Labor-Local Area Unemployment Statistics(LAUS) 4. Seasonally-Adjusted Labor Force and Employment 2013 to December 2024 —Labor Force —Employment 1UO4 so 0 6o n 40 t' 20 n o0 20 20[91 20 20 20 20 20 20 2e3 20 20 20 20 20 20 20 20 20 20 2012D 20 24 24 24- 24- 24- 24 24-124- 24- 24 J 24 23- 13 14 16 It LB 19 20 21 22 23 Ol 02 03 04 05 06 071OB OV 10j 11 12 —!eW Ivice 94 94 U7 W 100 30 104 106 1 106 107 lotfl looti 1 toe —zmreKr�vrrl 88 90 93 9n 91 99 97 1001 1031 l02 103 103 10.1031od11051 1071,104104 Source Idaho Department of Labor-Local Area Unemployment Statistics(L.AUS) Idahn Deportment CO Labor,Communecatlons&Ressarch Page 3 4318 25-2759 McKinlay & Klundt Appraisal Company Page 59 South Central Idaho Labor Force And Economic Profile.January 2025 5. Industry Employment and Wages. 2013. 2022. and 2023 2022 2023 Industry Sector Fri Average Average Average Average Average Average Employment is Wages Employment Wages Employment Wages Total t:,,, red Wages 81130 $32.286 :•t_ Natural Resources 9 7n1) $30 11105 $44.164 11.i80 14,= .13 and MirAng AL 1111 L onstruction 3.742 $.35.502 6.11`. $51.919 7,047 $55.954 9146 $42.585 11.507 $57-200 12,102 $60.471 Trade.Transportabnn. 17,319 $33.019 19.539 $47.647 19,765 $49.432 and Utilities 1.036 $35.697 908 $55A73 892 Financki,l Activities 2.508 $41.182 2.846 $73,158 2.84,I $68.080 Protessional ann 7 887 $31.031 7.671 $50,422 7.586 $55,276i Business Services Education and"earth 15.357 {,; ;2 18,351 $45.909 18.806 $47,375 Semces Lureand Hospdalth- 8,057 $15.683 10.275 $23.746 10.647 $25.3,03 Otttiet SArvlrae I Public Administration 4,141 $36,013 4.140 $49,133 4,175 $52,574 Sowcc, Id.i4o Oupnnmont or Labw Qimrtnrty Cm sim or Ln ployrnoni Wngin,IQCE W) 6dak)Department or Labtx,Communications h Research Pace 4 of 25-2759 McKinlay & Klundt Appraisal Company Page 60 South Central Idaho Labor Force And Economic Profile.January 2025 6. Top Employers. 2023 Employer Ownership Employment Range St Lukes Magic Valley Regional Medical Center Pf"te 2.500-2.999 Twin Falls School Nstnct Local Govemment 1,000-2.499 Amalgamated Sugar Company P r:.a. 1.000-2,499 Coll Local Govemment Wial hurt P Il atd, 500 999 Cassla(,1 nt S W Local Government La 5N•999 WWa►n Foods Private 500-! NOTE-Ony employs that have given the Department permission to,00ase employment range data are listed Source.Idaho Department of Labor-Quarterly Car-sus of Employment Wages{QCEw) 7. Real Per Capita Income. 2013 to 2023 Region —State of Idaho —United States se0,0oo $70,000 sea oo0 SWAM W4 000 s30.000 M.000 sla,aoa 50 2(113 2013 2015 201E 2017 201E 2019 2020 2021 2022 2023 �ggyen 437IX3 46.824 4752E 47.140 48.010 49.9W 54.2S4 57781 I IMS49 70-7,0 70087 -9tat4d16rfn 3�.229 37,be3 39.E22 a0.M J1.905 43.Tee 45.7a1 4B.eB3 tf6/17 57.140 59.M �I/vbd ef�es 44 aM4 47.017 4R.091 49,912 SIMI 54.00 58.047 150.1531 84.4110 84244 1 Su All) Idaho Defwrtment of Labor.Communicatims h Reseatch Page 5 or 8 25-2759 McKinlay & Klundt Appraisal Company Page 61 South Central Idaho Labor Force And Economic Profile.January 2025 8. Labor Force Commuting Patterns. 2022 It is estimated that 7 5.307 workers lived and worked in South Central Idaho in ..Another 18.^95 workers were employed in South Central Idaho but lived outside. while 16.904 workers lived in the area but commuted outside for work. 1 i rra �R Oaw 18, 95 ti 16,904 I MAO o�onv JJJJ� tirrupr ib aiaw ,adage source us Owwws auMau 9_ Top 10 Cities Where People Who Work In South Central Idaho Live. 2022 City of Residence Count of All Jobs Percentage of Total Jobs Twin Fall: 25 394 27 VY. Burley 6.476 6.", gitii�ir 4,336 4 C. Jerome 4:215 4.5% Ketch-in 2,969 3 2,X, Hailey 2,929 3.1% R111ieit_ 1,$49 20 , Sun Vagey 1:5% Gaiding 1.128 1 2 1:2% Not* 'All lobs'includes private and public sector jobs It also inchidos a count of workers witti nampla;tNrs %ource I S Cansus Bureau LorWhidinal Employer Houuihold Dytusmics it DO) idalxi Department W Labor,Communicatms&Research Page 8 of 8 25-2759 McKinlay & Klundt Appraisal Company Page 62 South Central Idaho Labor Force And Economic Profile,January 2025 10. Top 10 Cities Where People Who Live in South Central Idaho Work. 2022 City of Employment Count of All lobs Pefoentage of Total Jobs Twin Falls 1.R C 159 20 E. 4,516 4.8% Burley 4.253 a t> 3.542 18%. Rupert 2,124 2.3 Y, Buhl 1,584 1.7'x, Heyburn 1,200 13% Note '111I fobs'Includes private and puCuc sector pbs It also InLiudes a count of workers with muttiple jobs Source US Census Bureau Loogludmal EmWoyw-Househoid Dynamics(LEND) For more Information. Contact: Seth Harrington, Labor Economist. Idaho Department of Labor • 420 Falls Ave..Twin Falls. ID 83301 12M 696-2364 • seth.har • Labor Market Information website:Imi.idaho.go•v Idaho Department of Labtr,Commurucatms&Research Page 7 d H 25-2759 McKinlay & Klundt Appraisal Company Page 63 Idaho Statistics • ' } ' 1 IDAHO ECONOMIC SNAPSHOT The Gem State's unemployment rate has remained steady at 3 3%for the last six months,and its jobs grew by 30,800,or 3 7%, during the last 12 months.Industry sectors leading the jab growth were education and health services 14.600);government (*5,800):and construction(+5.4001,Ely contrast,the Industry sectors with negative job growth were other services(-500);and information(-100). IDAHO EMPLOYMENT GAINS MOMENTUM UNITED STATES EMPLOYMENT TOTAL JOBS: 866,300 — JOBS GAINED: 175.000 12-MO JOBS CHANGE 3.7% UNEMPLOYMENT RATE 3.3% I 12-MO JOBS CHANGE: 1.8% f foe 131i } _ �, UNEMPLOYMENT RATE: 3.9% em 101 T Say.�U S 9t..a d lNu BYW.. a,16 U.S GDP GROWTH ow 4 saa IS Nos rise toll toil +s W ?W4 2 2% 2 1% 4 9ti. 3 4k. —TGWJNB %ia L 5w•*U 5 Bmea..a LA-Stunk..wit d.to 1k,-0 4 al LA.- S.utr U 5 am.d ft~ii A-WW% N4 51rld t...-.�r.s.l ravuur� INDUSTRY OVERVIEW UNEMPLOYMENT BY COUNTY SUPERSECTORS Nor Change %chariga M,n,rr f:Luqging '.J 4.3%+ Consuucucn 5,400 31% 3.8%to 4 3% Manufacturing 4,400 591%. ❑ 3.3%to 3.8% Trade,Trans,&Utilities 7.500 1 6% [-] 2.9%to 3.3% Information too -1 1% [] Loss than 2.9% Financial Activities 300 0.7% Protessional&Business Services 1,300 1.I1* Education&Health Services 8.600 7.1% Leisure&Hospitality 2,B00 30% Other Services -Soo -1.8% Government 5,800 4 5% TOTAL +30.800 S—w.. ..b. S—.tl.tn r.- -...,.I 25-2759 McKinlay & Klundt Appraisal Company Page 64 IDAHO POPULATION GROWTH IDAHO GROSS DOMESTIC PRODUCT GROWTH Annual Gfvw,h Rah by County,2022.2073 Idaho:1.3% Annual Growth Rate by County.2021•2022 Idaho 4.2% U.S--1.9% 2.2%+ 10.(Y%+ 1-4%to 2 2% 5.5%to 10.0% 0 1 0%to 1 4% Q 3.8%to 5.5% ❑ 0.6%to 1-0% ❑ 0.0%to 3.8% ❑ Loss than 0-6% ❑ Less than 0.0% 5wwo Us C-.o 11— 5w U5&,w l F_aru..A,.*- TYPICAL IDAHO HOME VALUE INCREASING NATIONAL AND IDAHO HOUSING ldaho 5451,298:U.S. S3U,179 Horne Prices and Foreclosures s ..,An - W.000 $451.290' MEDIAN HOME VALUE $35k1791 ''000 1.5%' KCHANGE IN HOME VALUE 4.1%' — Si5A00 — 0-02161 FORECLOSURE RATE 0.02%1 so 20W 2M 2031 2008 2012 2015 2018 2t12t 2= —U'S —ID s..r." -r^•�+A^w n•a au..lbn.vrw.Areo'Si,ATMW Sw"rs s R"Afrh.s U Zli.Hlrs.Ywuw Artier STATE FACTS (VALUE a RANK) INTEREST RATES — .Total population.1,811-617 120211 381h 6 50%-WSJ Prime Rate Way 6,2024) •Roputation Growth Rate 1-8%12021-20221 2nd 7.85%-30-Year Mortgage,Fixed IMav 6.20241 •Total Fertility Role.1 85(2017-20211 8th S.vs.W.L Sesn.onw •Median Ape:37 3(2021)6th •Household Sae:2.71 (20211 61h •Median Household income:S76,9111(2021)16th ROBERT SPENDLOVE .Per Capita Personal Income$54,537(2022)44th •Personal Income 1%Change);9,6%(2020.7021)1st (Coniact our team for more informal itir, Swim.US C.—aYSA¢kawrslra*w fw Hwel'su"u to schedule a speaking engagement rue U S 111—of Ew ArsM— 1 ZIONS BANK. •h. .:'i.,rd'. ,,.i .. n,.. �.=. .�--i.". .'i;AurstruM.lf ir.l.ay.nr�f.-wv WSlrr.a:.l.r.nPl.asa[eN.l[Uw=resswrll aawllWu fpttllV.nfwW XC AQ/Ce.ConWtl msf corr.n tritlRnw M v f•arw nwmH nrrrM Vr Cwr�e.wM w!rest Af11u1M fnT TMn.flww•frl»r Yk+:/•A U»n�r n�wrst>df nil rmpfl w•r.rrxncr.nrU tN n wr'll.ltw wnn Ihrtl Dw1v!A. •i...rnf awwryaYgrl NA Wiw.r0lC.l.n Yry oWrwNreol Urm]1d rYN•rfllYl.lr..00ul p�rhal•f.7 Aw.KK U:IYWW� V"",--.,a.a wT uaq mYl♦ A dw ft4m of Tnn% 1.A Ywmtwr I'ML As of yn A 21)74 25-2759 McKinlay & Klundt Appraisal Company Page 65 d O Highlights r Housing remains a concern for Twin Falls, with growth III all sectors continuing to nse. Eastern i Southern I Idaho Office MarketEastern Idaho 24 Q3 QOQ Forecast Vacancy Rate 3.0% 1 Market Overview Net Absorption 7,758 SF 7`0 The economy is stable in Eastern and Southern Idaho.With population growth holding at just Direct Asking $15,74 T y over 1%,the labor market in Idaho overall is Leas*Rat*irsUs growing.From August 2023 to August 2024, employment increased by 2.8%in the Idaho Falls MS&3.8%in the Pocatello MSA and 3.4% in the Twin Falls MSA. Southern Idaho Asking Rate 24 Q3 QoQ Forecast This quarter,asking rates are steady in Southern Idaho and down slightly in Eastern vacancy Rate 1 1% T T Idaho,with asking rates at an average of$15.74 and S15.67 per square foot,respectively,With Net Absorption -2,438 SF /r H a U.S.national average cost of$36-38 per square foot,Eastern and Southern Idaho Direct RRaate px,i $15.67 T T remain appealing. Vacancy& Absorption This quarter,vacancy remained stable in Eastern and Southern Idaho.Absorption Sources:See Page 4 increased in Eastern Idaho by 7,758 square feet arid decreased in Southern Idaho by 2.438 square feet. 11 IM 01101 n.w he1 At-1 llnn 11-1- My th-0 As" .aTlS.rw,-1,.. 1-0—y%F 4 a..t ry,,.~# C-0 YTI) i autnr n.m DO--Y70 e...fps" Eastem Idaho tlenMs►'-. _.)M.OY) 116.433 116933 a 14e91 0 e slue M 9.8w a000 17,150 0 0 III= ibn�..rn. dJ65?LA1 95,A7e W.236 11A2 N,8Y.1 7aY1 t7 VA %1&0 TOTAL 7,011)A121 211,261 2nea 7.7% •11,m sae 17,404 115.7P4 southern Idaho [aJ. Z17Sm 0 0 0 t.400 0 0 11&M ►e.ome 2O9.912 11133 13.133 O 4L217 0 0 1ism Twin lath 2-D1109 11,A�9 15,191 -243e A741 0 it $10.91 TOTAL 2,71L441e M.1e1 > deM 41M e e 111,417 Colliers I Idaho 124Q3 I Eastern&Southern Report ' 25-2759 McKinlay & Klundt Appraisal Company Page 66 2 d O Highlights • 15ource,an Apple service provider,has opened r a second location in Twin Falls,offering services to Twin Falls customers after the previous Apple piowder closed in 202.2. Eastern & Southern I Idaho The Madison County Fairgrounds is moving.The fair board made a deal purchasing approximately Retail80 acres on part of South 3300 West,allowing for bigger events and accommodating more partking. Market Overview Eastern Idaho I he retail mat kei in Eastern and Southern Idaho 24 Q3 QoQ Forecast I emains steady,and vacancy is under 2%in both markets.This quarter's net absorption is vacancy Rate 1.6% slightly down In Eastern Idaho and steady in 5outhem Idaho.Asking rates are steady in both Not Absorption -10,208 5F y H Southern Idaho and Eastern Idaho. Direct Asking S 18.86 T Asking Rate Leas*Ram iNNN. .j 1,6 steady this quartet in Eastern and Southern Idaho at S16.22 and$15.65 pet square foot,respectively. Southern Idaho Vacancy&Absorption 24Q3 QoQ Forecast Vacancy remained low this quarter.At 1.6%in vacancy Rate 1 H% Eastern Idaho and 1.8%in Southern Idaho,retail vacancy in both markets is well below the Net Absorption yW SF H national average of 4.1%.Since the start of the Dire"Asking year,occupied square footage has remained Lease Rate Imim, S i,92 relatively steady in both markets,with slight decreases in net absorption this quarter in Eastern Idaho markets and no significant Sources:See age 4 change in Southern Idaho. rid V.— ......,Si •Ir,.M.-vi,m, rj"Al.. ri— trndrt A.V 134-1 f bwq rmmry S,hrvti.r 1--T W Sr fill Cnwrnwtr. P.a..•1..VM 11—(kw Eastern Idaho Os„rn>.• �.041,�ttr t y559 taea"o r, i975 0 0 S71 10 R. . t.077,uf0 71.7W 11"1 0 t7tW 0 0 SAW Mnne are 1125091 7%.Oq 001 11L:'% 4411z0 0 `1,7:0 Mob TOTAL 114.34IL ss 224,414 111.9n •m2N 42.e0 0 11.710 glass Sootbem Idaho t.n,s1. r.5,lO.r�O Ir.p>7 17,av o e_3a o o gleW r..anc Ip7g77t u u o 1.16 0 o t11]0 I Mrr,ldw 107,7111 157,119 1 Won-4 +All A747 14.1j1 0 11I?Y1 "MA, leiasO M.M "Lffn of •11.7011 TILTO s stun Colliers Idaho 124Q3 I Eastern&Southern Report 3 25-2759 McKinlay & Klundt Appraisal Company Page 67 Q � Highlights d • Idaho Power has broken ground on a new power r plant and research park at 2017 E.Iona Rs.The $36 million plant is estimated to be finished by Eastern December 2025. • • . • • The 80-foot-tall Experimental Breedet Reactor-II Industrial Market dome,located west of Idaho Falls,is being retrofitted as a Demonstration and Operation of Microreactor Experiments(DOME)test bed for Market Overview advanced nuclear energy reactors. c, v.i,.0 a-y l-ov,o u h i,i i ial assets in Ea5[ern and Southern Idaho continue to prove to be Eastern Idaho desirable.Absorption rates dropped this quarter za 3 Q QOQ Forecast in Southeast Idaho and remained steady In - - - - Easter n Idaho,with asking rates holding steady vacancy Rate 3.5% H H in both Eastern Idaho and Southem Idaho. Net Absorption 0 SF y H Asking Rate Direct Asking SO.62 H This quarter,asking rates remained steady in Lease Ran IN«NI Eastern Idaho and rose slightly in Southern Idaho,at an average of$0.62 per square foot In Eastern Idaho and$0.82 in Southern Idaho. Southern Idaho Vacancy& Absorption 24 Q3 QoQ Forecast Vacancy remained steady to Eastern Idaho and vacancy Rate 1 8% T T rose slightly in Southern Idaho this quarter, holding at 3.5%in Eastern Idaho and rising to Not Absorption -24.385 SF H 1.8%in Southern Idaho.Quarterly net absorption was flat in Eastern Idaho and negative in Direct Asking SO 82 .f Southern Idaho by 24,385 square feet Lease Rita iwom) Sources:See Page 4 Twd v.<nw V-c '11 rs"Abe-pnon 14-Ah—p— 11ny AVXDirweAd" i nnnrylG,tivnw.�.1 Itn'wnwY ST ST Kpvtowt«I -�n��n1 Wit) i,.nl..wtv.t CJAI—r"YTT) It"►1Mwwr Eastern Idaho Kin�nn 3,661,036 59,179 5•,179 0 210W 0 19,600 Saks 6n•Irtn • 71017n 10,400 10,AM 0 10,40 0 D "All— Ustwtlt�gb 6 SM 047 37Le" 3.7 00 0 21,396 5S•10 82.4it3 10.56 TOTAL It U114011 a•Ls2• !••,S7• • ••7411 •L•10 1.40u 56" Southern Idaho C..d. 2,139,n2 0 0 n 0 7l000 r WA XMI3197 133000 13300o 0 -64900 379,760 0 60.9% TwtnTdly 9,02SW7 U1.1510 107,121. -24,385 t--'.73A 1615 K1 0 $11 Y) TOTAL /N M.Sm 2T"U 2ALW -•4.2•• .uLnd iILM f•212 Colliers I Idaho i 2,1"?3 1 Eastern&Southern Report 25-2759 McKinlay & Klundt Appraisal Company Page 68 TOIC COMMERCIAL MAGIC VALLEY SUBMARKET MAPS MAGIC VALLEY Northern Idaho Central Idaho Eastern • Boise Idaho Bois; .. �- Metro - • tokcommercial.com 25-2759 McKinlay & Klundt Appraisal Company Page 69 OFFICE AT A GLANCE All 55,000 SQ. FEET -- GROSS ABSORPTION T 3 .8% _ T MULTITENANT VACANCY Rog- � rrI.� H T $ 18950 - - AVERAGE NNN LEASE RATE (ANNUALLY) I i +:�. ��%r�;t�,�7•��'h{!�. ^+ ~x��L�� ~�'ir��'S ��CQ` r •�"� �' -tom jr y�y�� Y'•.. / t ;y tokcommerclal.com 25-2759 McKinlay & Klundt Appraisal Company Page 70 • MAGIC VALLEY OFFICE MARKET OFFICE CONDI I IONS OFFICE OUTLOOK Transaction activity declined by over 60 percent In 2023,with gross absorption The strong organic growth the area hasseenwill likely continue to drive the demand for future totaling 5S,000 square feet.The Central and Downtown submarkets saw the highest office space.Over 55 percent of transactions In 2023 were with tenants opening additional number of deals completed,while the Central submarket also boasted the highest locations,expanding their space,or local tenants starting new businesses. North Canyon gross absorption with 21,200 square feet absorbed.As a result of reduced absorption Medical Center,for example,officially broke ground on their new 23,000 square foot,3-story In the market,overall vacancy Increased slightly from 1.7 percent at the end of 2022 clinic on the comer of Pole Line and Eastland In Twin Falls this year.This clinic will offer a wide to 2.7 percent.Muititenant vacancy also increased from 2.9 percent to 3.8 percent in range of healthcare services for all ages and Is expected to introduce a number of new jobs 2023.In turn,this led to projected supply Increasing from four months to just over to the area. nine months by the end of the year. It is anticipated that the slowing of construction In 2023,will likely impact lease rates.The As construction costs and uncertainty Impacted developers'decisions to build,office overall average for lease rates remained stable In 2023,a trend likely to change as demand for development slowed drastically with only 14,S00 square feet of new construction office space grows with little Inventory. delivering in the Magic Valley In 2023.Over SO percent of this new space was speculative,offering tenants new options to lease or buy within the market. Medical and health related services continued to perform well In 2023,with multiple deals occurring In the Magic Valley over 4,000 square feet.Valley Therapy Services OFFICE DEVELOPMENT DRASTICALLY SLOWED IN 2023,WITH ONLY 14,500 SF Or completed construction ontheIr new facility In Jerome,whichcomprised 7,000square NEW CONSTRUCTION DELIVERING IN THE MAGIC VALLEY. feet.Family Health Services leased 10,900 square feet of space off of Kimberly Road In Twin Falls,while new to market tenant,Stoddard&Bingham Medical,leased 5,000 THE ORGANIC GROWTH OF LOCAL TENANTS WILL CONTINUE TO DRIVE FUTURE square feet at 1411 Falls Avenue In Twin Falls. OFFICE ABSORPTION. NOTABLE.ACTIVITY TENANT ORIGIN VACANCY TRENDS ROAD ... 167C ... .r • •- .r ,,,%F-JEROMEar OCCUPIED BY VALLEY 714FRAFYYSFRMCFS .r .r 1411 FALLS AVENUE W41AV 1�p 40 40P 40 40 44* .r •..n.w......u..,e..w».,n, .. um,».»..»v.• r ..na»u»a..,....a a.n»o.v. • — _ — ALMOST ONE-THIRD of TRANSACTIONS in2023were OVERALL MUFTITFNANT vacancy INCREASED tenants ADDING LOCATIONS OR EXPANDING SPACF from 2.9%to 3.816 over the past 12 months. tokcommercIa1.com 25-2759 McKinlay & Klundt Appraisal Company Page 71 INDUSTRIAL Al A ( d AN( I 141 ,000 SQe FEET GROSS ABSORPTION T T 1 .3% ., Fo �f/\l VACANCY RATE — —— T H $0095 AVERAGE NNN LEASE RATE (MONTHL) ) tokcommerclal.com 25-2759 McKinlay & Klundt Appraisal Company Page 72 • VALLEY INDUSTRIAL MARKET INDUSTRIAL CONDITION_ INDUSTRIAL OUTLOOK In years past, high demand for Industrial product in the Magic Valley has kept Construction costs will remain a challenge for builders in 2024.but the year is anticipated absorption numbers high and vacancy rates at historic lows,with overall vacancy rates to be a banner year for new developments with over 910,000 square feet of industrial space reaching as low as 0 3 percent In 2021,Over the course of 2023,lease rates Increased currently planned of under construction in the Magic Valley_A few notable projects include from$0,88 per squwefoot iNNN,monthly)to$0.95 per square foot.Continuously high 428,000 square feet at Northbridge Junction Phase II In Jerome,as well as 115,000 square feet rates throughout the year caused a dramatic change in industrial gross absorption in of speculative space at Gemini Business Park in Kimberly the Magic Valley in 2023,with only 141,000 square feet absorbed.This Is a 6S percent decrease from gross absorption numbers seen In 2022,as It seems prospective tenants In addition.the Magic Valley will continue to see growth from new to market tenants,as the are content to wait for lease rates to flatten before expanding their footpnnt in the area has become an attractive choke for many businesses.Due to its well positioned location Magic Valley market_Despite the overall slowdown in demand in 2023,the market for as a central hub for the state,convenient access to major roadways and junctions,as well as smaller industrial spaces continues to be tight,with suites between 2,000 and 5.000 its lower land prices in comparison to the Boise MSA,the Magic Valley has attracted some big square feet comprising 64 percent of total deals completed in 2023. Industry players.For instance,Amazon plans to open their new 43,000 square foot distribution facility at Northbridge Junction in Jerome before the end of the year Additionally,the delivery of large speculative projects like iron Creek Industrial Park Buildings 1&1(30,000 square feet)and Sunset Business Park(25,400 square feet) caused a dramatic uptick in multitenant vacancy,which reached its highest level since TAKEAWAYS: —1 the beginning of 2021 at 10.1 percent.Overall vacancy also increased to 1.3 percent NEW CONSTRUCTION WAS DOWN FROM 2022.DELIVERING 105.000 SQUARE FEET. and months of supply surpassed 5 months for the first time on record_ ... THE DEMAND FOR SMALL INDUSTRIAL SPACES REMAINS HIGH.WITH 2,000 TO 5,000 SQUARE FOOT SPACES COMPRISING 64 PERCENT OF INDUSTRIAL DEALS COMPLETED IN 2023 NOTARI I ACTIVITY GROSS ABSORPTION TRANSACTION, BY SQUARE FOOTAGE Mllin 1 ' •f � Yn 1U fill :•il L'1 •.ii.•uliaue.l�l.wi�cu��,,._ccutar�oi -r GA055 ADSOIPTION swf DOWN OVER ASt hom 2022. 3.001 to 5,000 5i,paces made up 44%of IN1X15"t1AL deals in 202).Tenants (XPAWMNG Olt OPk KING AMO ONAL LUX AI K)N%made lip 4R 0f pidustnal deah. Tokcommercial rani 25-2759 McKinlay & Klundt Appraisal Company Page 73 i RETAIL AT A GLANCE -- f MONKEY 93,000 SQ. FEET _ GROSS ABSORPTION 1 I 3.0% TOTAL VACANCY RATE T H $ 15.00 CLASS A NNN LEASE RATE (ANNUALLY) tokcommetcial-com 25-2759 McKinlay & Klundt Appraisal Company Page 74 ' RETAIL MARKET RETAIL CONDITION-, RETAIL OUTLOOK The Retail market saw a significant slowdown in leasing activity in 2023 compared to The Magic Valley has strong fundamentals Including high population growth and low 2022.Overall number of deals were down nearly SO percent,while gross absorption unemployment.These factors will help continue to draw interest from national retailers as ended at 93,000 square feet decreasing from 233,000 square feet in 2022.In addition, well keep organic growth stable However,a major challenge for the retail sector will continue net absorption ended at its lowest level since the pandemic occurred at 3,600 square to be lack of supply.High construction costs resulted in less than 10,000 square feet of new feet. construction delivering In 2023.This trend will remain In 2024 with few projects in the pipeline. The most notable project currently under construction isTommys Express Car Wash in Jerome. The decline in leasing activity was largely due to lack of supply.Total vacancy ended 2023 at 3 percent,its lowest level on record.Unanchored vacancy ended even lower Limited supply will ultimately keep vacancy tight and likely within the 2 to 4 percent range at 1.7 percent,down from 2-6 percent in 2022.In addition,overall months of supply As for lease rates,overall asking rates are currently averaging$12.00 per square foot INNN, ended at 11.6 with all but one submarket averaging less than S months of supply_ annual)while Class A rates are$15.00 per square foot.Class A rates in the Canyon submarket, the main retail corridor for the market,are averaging even higher at$19.00 per square foot. Fewer big deals occurred compared to 2022,however some notable spaces were backfilled,including Natural Grocers leasing the former Bed,Bath,and Beyond space in Twin Falk and Olta Beauty absorbing the former Rue 21 store in Burley The M30K Valley continued to see organic growth with 47 percent of deals attributed to local start-ups. In addition,the area also saw national interest with new to market tenants accounting LEASING ACTIVITY SAW A SLOWDOWN IN 2023 WITH BOTH NUMBER OF DEALS for 32 percent of deals.Of these deals,over half were food related with notabletenants AND ABSORPTION DECLINING SIGNIFICANTLY FROM 2022- such as Wingstop,Stella's Ice Cream,and The Cookie Company entering the market LACK Of SUPPLY WILL REMAIN A CHALLENGE AS HIGH CONSTRUCTION COSTS CONTINUE TO LIMIT NEW DEVELOPMENTS, NOTABLI ACTIVITY TENANTORIGIN VACANC.YTRENOS CANYON PARK WEST LIASIL. .NATLIRAL GROCERS r r RIVERGATE CROSSING w _ ,� f SF KIRILLYa LIASILDIOLIUARILAUTY 0000 RELATED TENANTS made up o J4 0l NEW TO MARKET deals T07A1 VACANCY rayed Of 101N a%,iYroughow?ti13 iMdIr10 at RECORD LOW 3q► tokcommercial-cam 25-2759 McKinlay & Klundt Appraisal Company Page 75 ToK INVESTMENT MARKET INVESTMENT AT'A GLANCE ♦. © © , • • " :s r �,� ANNUAL RTERL� AVERAGE ATE w � �`•' "'' ,�'� nNN11AL QUARTERLY • • • AL CAP • •` - r 1+' _ ANNW1l IARTT W Y RETAILAVERAGE . . ► • 7 ` nil 111111111 a • ;fit_: a•:� X �' i • McKinlayiKlundtAppraisal • •.ny Page76 • VALLEY INVESTMENT MARKET INVESTMENT , INVESTMENT Rising interest rates and high economic uncertainty resulted in the Magic Valley Since March 2022.the Federal Reserve raised its benchmark rate 11 times in an effort to cool Investment market seeing a continued downward trend in sales activity in 2023.Based inflation.However January was the fourth consecutive meeting that resulted in a rate-hike on disclosed transactions,sales volume ended the year at S 19 million.This is down pause,keeping the benchmark interest rate range between 5.25 and S5 percent. Inflation 85 percent from 2022.Of the deals that traded in 2023.the retail sector made up 84 still remains above the Fed's target range,however latest economic data shows that inflation percent of transaction volume with one deal trading for over$10 million, is slowing and the economy is cooling.Based on this,many experts are predicting rates will stabilize and the Fed could even Lx-gan to cut rates in May Though rates will probably not Very few sales occured in the Magic Valley with number of deals declining 42 percent return to historic lows. from 2022, Similar to transaction volume,the retail sector led in the number of Investments traded accounting for 67 percent of deals.The storage sector was the Until interest rates decline,investment activity is anticipated to stay slow throughout the first second strongest property type by deal count making up 17 percent followed by half of 2024.In addition,with this year being an election year,there is an added likelihood of office and industrial. volatility In the overall economy.Buyers will remain cautious when deciding where to place their capital,but properties will trade that are well positioned with strong fundamentals. After reaching record lows in 2021 and 2022,capitalization rates began to rise In 2023. Nationally,capitalization rates rose across all sectors.The retail sector saw rates rise slighNy from 7.3 to 7.S percent over the past 12 months,while office rose from 6.0 to 6.7 percent Industrial and multifamily saw the most significant change in cap rates THE MARKET CONTINUED TU SEE A DOWNWARD SHIFT WITH BOTH SALE VOLUME from 2022.Industrial rose 70 basis points while multifamily increased 80 basis points. AND NUMBER OF DEALS DECLINING SIGNIFICANTLY FROM 2022. —�SALES ACTIVITY WILL LIKLLY REMAIN SLOW FOR THE FIRST HALF OF 2024 LINTIL INTEREST RATES DECLINE. ACTIVITY DEALS PROPERTY TYPE NATIONAL CAP RATES TOTAL i%ovilm or sales DECLINED 42%6 from 2022 CAP RATES ROSE across a•SECTORS with RETAIL un"the LOWEST SHIFT tokcommerCIALCom 25-2759 McKinlay & Klundt Appraisal Company Page 77 Macro Market Data In 2024,the U.S. industrial market is expected to stabilize,with net absorption similar to 2023 levels and a moderate rent growth of 8%. Construction deliveries will decrease by midyear,reaching half of the 2023 total. Early-year deliveries will temporarily raise the overall vacancy rate to approximately the 10-year average of 5.0%,but it is expected to decline slightly in the second half of the year.New development will be limited due to tight lending conditions, economic uncertainty, and an oversupply of large warehouse and distribution facilities in certain markets. Figure 13: Industrial Construction Starts MSF 140 120 Forecast 1171 113.5 110.5 100 99.8 1002 94.5 80 85S 60 872 88 2 642 55.0 50.0 40 4o5 40.0 40.0 35.0 20 0 0�1 0�1 0�1 0�1 pr1� p1� 0`1� 19— QrP, o�� p 'ZIP `l�� 0`V 1A 111� a�`l. , ryo ry0 rL0 O a� & 03 C`x Source:CBRE Research,03 2023. Annual leasing activity is projected to remain around 750 million sq. ft. for the next few years. Lease renewals will dominate the first half of 2024,with the potential for increased new leasing in the second half if economic growth improves. Three key demand drivers influencing occupier decisions include supply chain resiliency, e-commerce growth, and population growth. Occupiers are concentrating on reinforcing supply chains by diversifying import locations,onshoring or nearshoring manufacturing operations,and adequately staffing distribution centers. There's a focus on exploring alternative seaport and airport markets to hold more inventory. Strong demand for manufacturing and distribution facilities is expected,driven by a projected 7.5%increase in U.S. industrial production over the next five years. E-commerce is anticipated to experience steady growth over the next decade,prompting retailers and suppliers to expand warehouse and distribution space. This trend is expected to be particularly notable in the U.S. South,where many growing population centers are located. 25-2759 McKinlay & Klundt Appraisal Company Page 78 Figure 14: Historical & Forecast E-Commerce as a Percent of Total Retail Sales 30 Forecast 25 20 15 10 5 0 0�3 bNb O,Nb oN% bNb �^h bNb oNb O.A bNA 0Nq, 0N% 0.�0 bNq 0�0 `L`L �`L ti`L �`� ,ti`L �`f ti1 �`� ,ti`L �`L ti`L �`L ti`L �`L ti1 �� ti� -`� ti�L 1�`L a� 0 0 0 0 0 0 0 0 O O O O O O p p 0 0 0 0 0 Source:CBRE Research 03 2023. As pandemic-driven demand diminishes, occupiers are shifting their focus to energy savings for their facilities. There's an expected growth in the use of sustainable energy sources like solar and wind in 2024. Commercial use of solar panels is projected to grow by 13%in 2024. Sustainable construction materials, electric truck charging stations, and investments in automation and artificial intelligence for order picking and inventory control will gain traction. First-generation spaces with these amenities will be in high demand. Markets with reliable power sources and incentives for environmentally friendly power options are likely to be favored by occupiers in 2024. Source: https://www.cbre.com/insights/books/us-real-estate-market-outlook-2024/industrial 25-2759 McKinlay & Klundt Appraisal Company Page 79 Highlights Ir The Shoshone County Board of Commissioners has plans lans to remodel their current P offices and is now looking to move part of their staff into another office. Idaho Office Market Overview Eastern Idaho I I ie en oriel uy V,SwbIe in tastern and Southern 24 Q2 QoQ Forecast Idaho,With population growth holding at just over 1%,the labor market in Idaho overall is vacancy Rate 3.2% IT` T growing.From May 2023 to May 2024, employment increased by 0,3%in the Idaho Nat Absorption -52,970 �r H Falls MSA,0.7%in the Pocatello MSA and 0.3% In the Twin Falls MSA. Direct Asking $14 64 y T Lease Rate It sot Asking Rate This quarter,asking ar a steady in both Southern and Eastern Idaho,with asking rates Southern Idaho at an average of S16.10 and S14.64 24 Q2 QOQ Forecast respectively.With a U.S.national average cost of$36-38 per square foot,Eastern and Vacant).Nate 1 0% H H Southern Idaho remain appealing. Not Absorption •2,905 W H Vacancy&Absorption Direct Asking $t 6.10 NI/ H Tluy yuc+1[e+,v.uan+.y n++.ledyed oil Eastern lease Rate 1FSG1 Idaho and did not change in Southern Idaho. Absorption decreased in Eastern Idaho by 52,970 sq.ft.and in Southern Idaho by 2,905 Sources See Page 4 sq.ft. Tr..1 V-- 9-FM N.1 ft—v.i— N..A► . e— U-1.r A.t 00-"A1N7 __.,ii�•1d,nu.kr+ I.v. —v It %F (Lrl Q—,".) La,—1 YID 1—t—lb— D.Uw YID ll.e(NNVI laslaa Ideho Bn.wb J•3601093 116,933 96.An 44456 11417 0 0 51440 1140M MAIS7 91511 9.000 460 1150 0 0 11ILS1 B.,rnwll. 4.31&ZING 94.23E 369M -31.16i 41579 2400 17404 115.J0 tOTAL 7.e1R.01 771.1I1 16LD7 41.171 •I1.171 L401 t7A16 $1444 Southern Idaho (*Sr. n7,911 0 11 0 1,410 0 0 116.AS M•..•• fi9,9W 11133 14,15A 1.721 12A7 0 0 slim 1—F.Ib 2,J9►500 I!ktg1 Ipg(n AV6 -012 0 0 $16,90 tOTAL LM445 a.77i 76.10 .LlOS .7.1" 1 1 St(11 Colliers International of Idaho indicated a total vacancy of around 1.00%for the industrial sector in Southern Idaho. Current asking rates are$1.34 per square foot a month or$16.10 per square foot annually under NNN terms. This accounts for all types, sizes, and ages of industrial buildings in the county so a newer higher quality building would typically have higher asking rates. 25-2759 McKinlay & Klundt Appraisal Company Page 80 NATIONAL • • • OES, BARLEY WT rl)EPIPERMI hds food Ixwerage Idaho produces LFA HAY agriculture over more than 18 5 $2 el�uoN O C ODITIES _ 000 farms �titi:'r)14 billion 1bi nches - 2 nd tr SUGARBEETS, 0 _. , =HOPS d food& 2•68illi leas tee ' RGEST :gal•AMw&—M+ EESE= MIL K ECONO ,d As a i ' minion lbs. • 4 th t Edibio BA LE III ONIONS, PEAS� • „ - � ash breweries • 'r' _ - AFATO ry LENTILS EVERY►'wIwrn had o d ts�d to . it • • lb hrIC kwv p &CM OcN oswi t"st Tel Idem P-jUt•pCr?cE''-c rr'v -rt- .-it 25-2759 McKinlay & Klundt Appraisal Company Page 81 DAIRY FACTS: .Dairy is Idaho's#1 agricultural busincss IITEHOUSE FOODS I ` ` .All of Idaho's dairy farms arc family _ owncd and many arc multi gcncrational - .Idaho is the ird largcst produccr of milk and chccsc in the cntirc U.S. .The avcragc dairy cow produccs about scvcn gallons of milk per day,howcvcr the production by somc high producing Lutbouseloods cows can be twicc that amount! .IfIdahoans consumcd all of the milk produccd in the statc cvcry man,woman, and child would havc to drink 40 glasscs of milk cvcry day of the ycar! .Idaho's un iquc gcography,climatc,and soils producc dairy products of the . , 7 highest quality iLV,, jlr'aN . ,; ., ," ' Cois,u•rloods ILI ron!'sSun i,N/fl Ice Cream t- 1 - - ----- REEDS ONRY N.• y TONfS SUN VALLEY ICE CREAM . `��• �' - - DatTy CLOVERLEAF CREAMERY GOSSNER FOODS ,,r,,.•'�i�� ,� ClorrrlrrfCrra mcry _ ' Reeds Dairy 25-2759 McKinlay & Klundt Appraisal Company Page 82 5,1713 3 30 c161 OSL?A14ASS 2022 State AgnWltys Overview 1w kaoho 2022 STATE AGRICULTURE OVERVIEW Idah(. 1 s..,.r cuw�o-rr,�.•.•.•y.as.x tarwl+7llOT?' Faun{Op.ratlorn� �Jrm Upcalan: Area GperatcJ t,%.x.jrnj m AL!e _ger.nun 471 Farm(Iprr ffn Nwrtw nl i grrahn 24AW F adn upraern;-Acres a rrtted t 1,500 000 Livestock Inventory t :aisle,Coves Hcef-Imerday I Feel d Jan 20231 449 000 Cattle.Cows.Mrlr-InreMaY(First or Jan 20231 661,000 (.-.attlo'lino Cables-lrlvlm m(Fast of Jan 20231, 2,6W,000 Cade.On Feed.Inver airy(Frs1 of Jan 2M 330,000 Goats k4k-IrnrQAdry(First d Jan.20231 6,400 14*eF Ind L-1rr0s Irlverllary 1 First d Jan 20231 220000 W.q5 Irweroxv(I"d Dec 2(122 1 24 000 - Milk Production M0, :`o-J.rnnn Mra: d on L O-Head 26,946 r.111-fL:Lu�Un h4:r4br:•d m S 4,290024,000 hN/.-ttc.�,uwn f.t,r.r,roc m I'� 10,II28,OOD,tXlO Crops-Planted, Harvested,Yield.Production,Price(MYA)-Value of Production t Sorted by Value of Production in Dollars - •ri all p ---- Pnc•Pr n MAY t MAYLAGE _ 4 02 TONS!ACRE,D HAY 6 HAYLAIiE 1;bg0,00D DRY 6,027,000 TOM DRY I,ar4,377,000 BASIS BJ��tG 4 6 TONS(ACRE,Oft' 6,100,000 TONS MY HAY 1S HAYLAriE ALFALFA 100000 1,1t0A00 BAS18 I BASIS 1,404,976.000 HAY 6 HAVLAr.* IEXCL 2-35 T� TO(ACRE,ORY' Wb000 NS.D*Y ?19,402,000 ALFALFA) 380,-- BASIS BASIS, POTATOES W)to1rJFti 2i3"bDifi ftl4,�b0 410CWiAaiu 120,7414004fWt 12Sr(' ? 1,4t8,Y10,000 .-. - MAY HAY 1410 OOO�bT B l iZRE: 5.VR,000 TONS 212 S)TON T 1 i331B0,000 rinY,ALFALFA I t 1x10_ E •,Y.A,OM TON1 275 f!TON t 4 HAY,fEXCL ALFALFA i 750DW 22 TON3IACRE 770 0M TCN5 239 5.'TON I 184,000j0M WHAT 1V14J1T 1 167000 1 1p77_,000__ 86.8 BU r ACRE 93 S!S DDO BU _8.75 S!BU 7f3B,29t 000 14HEA11 WINTER 770000TI 110 00_0_ 90 BIl f AGRE 83 900.000 BLI fl 1 f 1 BU 517,500.000 1VFIEAT,SPRING/EXI;.t 3BD,o00 ]80,000 Bl BU rACRE 29.160,000 BLl�B 15?)IOU 237,664 000 1UEAT SPRING.OURU rt 7,000 7 000 66 ou(ACRE 456.000 Bu' 8 9 f i Bt 4,060,000 BARLEY BARLEY 1 6a0.000 --540 000 11191.1.ACRE fB,AaO 000 BU 7 3 S(8U( 44A 5L60�000 CORN _ -- 1,011 L3"N 11010000 21SOUrACRF 23740OWBU 72S(ski 17t072000 CORN,SaAGE TONSIACRIF B4O -- I:r11tNIN)d --1 HOPS _ HCF 9Z83 (ACRE 16A PINT MINT PEPFERI,IINT OL t3,000 1061LBACRE 1�.000LS IS /_LB_ 24,980,000 I,IINT SPCAF INT OIL 800 13.2LBIACRE 11B0o0Ls,206t118 2,440,090 CHICKPEAS LHI:Xt x A,n J- 151 0w 410-OW- 1,310 LB(ACRF 783.000 CWT 30 8 S 1 24,",000 PEAS 1 __ PEA5 DRY EDIBLE 28.000 27D00 1,00LBIACRE 456MCWF MAST 7,570.000 OATS OATS 50,000. 16-000 w0tr4cm 1An4.000-&1 071w-- 5,170,000 SAFFLOWER - - tiA 1-1(yAFR 24,500� 23,6t10 FAXI19(ACRE i 14,100.000LB 3L1Mf 4,343.00 LENTILS LENTILS 15,000 4,000 670L8(ACRE g0000CWT 37 wr w►rLAGe _ 11AYLM3Et25000 i131 TONS rACRE 1,11/,00oTONS HAYLAGF,AAIFALFA 95000 131TON9(ACJ* 1_i14_000TCM hVs ,vv%wnsssusdsgov,,QuKk StslsvAg_Ovwww.stsleOvotvwwphp')stats=IDAHO 12 25-2759 McKinlay & Klundt Appraisal Company Page 83 5s'1 1.23.3 30 PM VSUOvNASS 2022 SIMI,AVIutnure O+wvww 10 Idaho HAYLAGE(EXCLALFALFAI I Q 000 7 5 TONS f ACRE 300 000 TONS SUGARSEET3 Stx sAR9EFTs' f73,000 j Odfim 38 f TONS.,ACRE 6,477,000 TONS. :%As Ness 4.aWe O MUxrtl a alma*"tug aab br raym l*grabs �5:rnwAct.+nnrtx.or ieoah b efiarNfn>'sllrrsle �x;Md ApprClbe Sr Ln»r N/tx rpnUss;uw hl!In �.vww rw��utidn ynvVUKk_SLfitiAy_�'�vavwew.til�t4�va�n�rw NI��tiWte=llMN�� . . 25-2759 McKinlay & Klundt Appraisal Company Page 84 Area Discussion In analyzing the general city area of the subject property,there are four primary forces which influence real estate value,the four forces are: 1) social,2) economic, 3)governmental, and 4)environmental considerations. Environmental Considerations The subject property is located in the southeast section of Twin Falls,Idaho. The city of Twin Falls is located in the south central part of Twin Falls County in southern Idaho. It is approximately 128 miles southeast of Boise,the capital city, approximately 115 miles southwest of Pocatello,and 222 miles northwest of Salt Lake City Utah. Twin Falls is located off of Interstate 84,which runs east/west in Idaho. Twin Falls is the home of the College of Southern Idaho. The environmental considerations of Twin Falls contribute to an economic base of primarily wholesale trade,manufacturing, and health care. There has been growth in the area and property values have been increasing. The elevation of Twin Falls is approximately 3,750 feet. The annual precipitation is 9-12 inches. The average temperature in January is 37 degrees and in July is 91 degrees. A visual inspection of the property did not reveal any apparent environmental issues or concerns. While the appraiser has inspected the subject property,he is not qualified to detect hazardous substances whether by visual inspection or otherwise,nor qualified to determine the effect, if any, of known or unknown substances present. The final value estimate is based on the subject being free of hazardous waste contamination. Parties desiring more precise and reliable information may wish to engage a professional environmental consultant to conduct an environmental assessment. Should such assessment indicate an adverse condition is present that has not been addressed by this appraisal; the conclusion of this appraisal may need revision. Social Considerations Twin Falls County(population 2020 census—90,046)is situated in south central Idaho in the midsection of the Magic Valley. Twin Falls is the county seat(population 2020 census—51,593)and serves as the transportation, marketing and retail center of the Magic Valley. The county airport is located six miles south of Twin Falls and the city draws shoppers from areas more than 100 miles in distance. U.S. Highway#93 meets Interstate 84 approximately three miles north from the Perrine Bridge north of Twin Falls City. U.S. Highway#30 and the Union Pacific Railroad also serve Twin Falls County. There are 11 schools in Twin Falls consisting of seven elementary schools,two junior highs,two high schools, one alternative school, and six private schools. Governmental Considerations Buhl has a City Manager form of government and an organized City Fire and Police Department. The city has 70 police officers and 37 firefighters. Politically,the community is conservative in its attitudes towards growth and development,however,new development is encouraged as well as a diverse economic base. Economic Considerations Twin Falls is the financial and business center of about a 100 mile radius,which would include a population of about 150,000 people. Counties within the trading area are Blaine, Camas,Lincoln,Jerome, Gooding,Minidoka, and Twin Falls. Northern Nevada is also considered as part of the "Greater" Magic Valley. The economy has an agricultural base and is one of the most densely developed agricultural areas in the United States. There are approximately 250,000 acres of irrigated land in Twin Falls County. Most of the industries are agriculture-related, such as the Amalgamated Sugar Processing Plant, Seed Milling and cleaning facilities,flower mills, and potato processing plants. There are a number of cultural and recreational facilities available to the community, including a city owned golf course,tennis courts, swimming pools,ball fields,racquet ball and basketball courts. There are also two private golf courses in the community. Skiing is an important and growing activity with available skiing from about 45 to 90 minutes away at several well developed ski areas,Magic Mountain,Pomerelle, Soldier Mountain,and the famous Sun Valley, Idaho. There is a nice theatre on the CSI campus,and there are a number of community drama 25-2759 McKinlay & Klundt Appraisal Company Page 85 groups. There is a symphony orchestra which usually provides about four to six concerts during the year. Other special activities are also sponsored by local communities and the College of Southern Idaho. Full hospital facilities are available at St. Luke's Magic Valley Regional Medical Center,with 165 beds and 24- Hour Emergency Room service. There are a number of active and associate physicians connected with the hospital, as well as three dentists. There are eight banks with about 16 different locations,along with five Savings and Loan institutions,providing for banking services in the community(Twin Falls). Special manufacturers in the area include Long View Fiber Company,manufacturing corrugated cardboard boxes;Norco Manufacturing, a window product company; Spears Company, a manufacturer of sprinkler products; along with numerous other agriculture related industries. One of the more interesting agricultural pursuits in the area is trout raising. Approximately 90% of commercial trout in the United States is raised within 25 miles of Twin Falls. Twin Falls County is also the leading county in the U. S. for the production of garden seed beans. The buildings in the farming areas in Twin Falls County generally reflect the prosperity of the farming area. Twin Falls residential areas have expanded from the city and housing is still a major expansion influence. Most farm improvements are well kept and are very functional. These improvements may not be new; however,they are very adequate in most situations. The improvement values are generally a rather small portion of the overall farm value. Neighborhood Analysis &Trends Subject neighborhood is located in the south end of Twin Falls,Idaho. The general neighborhood is mixed use of industrial, commercial and residential uses. The general neighborhood is about 80%built-up. The immediate neighborhood of the subject is influenced primarily by commercial and residential uses. The general neighborhood discussed is in a stability stage of development with average demand of the properties in the area continuing in the future. Overall,it is expected that land and property values will remain fairly constant. 25-2759 McKinlay & Klundt Appraisal Company Page 86 Subject Property • • • Identification of the Property This real estate appraised is generally at the corner of Washington Street South and Orchard Drive on the south side of Orchard Drive and East Side of Washington Street South. Its common address is 929 Washington Street South, Twin Falls, Idaho 83301. Legal Description A professional surveyor and/or legal counsel should verify the following legal description before relying upon, or using it as part of any conveyance, or any other document. This legal description was obtained from public records and is assumed accurate. RPT2701005012 Twin Falls Huerta Vista SUBD Lot 12; Lot 13,Except W .07A Highway Block 5 (28-10-17 NW) (63-602A) Containing 1.02+/- acres or 44,431+/- square feet 25-2759 McKinlay & Klundt Appraisal Company Page 87 Aerial Plat Map ' a 1 Olu s' RP1 R PT4 4 0 5001001 -y n n n i j 25-2759 McKinlay& Klundt Appraisal Company Page 88 Building Sketches 33.5' 30.5' Sleeping Baracks N Cq Garage �► a a Bathroom Kitchen 10.5' Living Office N 43.5' 19' in 12' u' Area Cali_olations Summary 110ag Area CiklflWan a'taft Jusa..5 (I ft 18.S x 33.5- I624.A 30.5 x 28 = $54 15.5 x 19 - 294.5 13 x 12 = 156 10 x 15.5 - 155 Ldal 1 ivin4j Areo TOTAL I-ketcn soiW#%#4y i0 mode tec"otogief ilc. 1-800-01a»0a 25-2759 McKinlay & Klundt Appraisal Company Page 89 Photographs of Subject (photo page 1) •` - _. " ..`� ;:''+ ' $ Subject _ I Subject r 1 25-2759 McKinlay & Klundt Appraisal Company Page 90 Photographs of Subject (photo page 2) Office Now, Kitchen 25-2759 McKinlay & Klundt Appraisal Company Page 91 Photographs of Subject (photo page 3) --- Office ki Sleeping Barracks 25-2759 McKinlay & Klundt Appraisal Company Page 92 Photographs of Subject (photo page 4) Sleeping Barracks k ' Sleeping Barracks 25-2759 McKinlay & Klundt Appraisal Company Page 93 Photographs of Subject (photo page 5) Office i Bathroom 25-2759 McKinlay & Klundt Appraisal Company Page 94 Photographs of Subject (photo page 6) Bathroom i Garage Area J 440 _ - a 25-2759 McKinlay & Klundt Appraisal Company Page 95 Photographs of Subject (photo page 7) Garage area Ow No T w Washington Street - _ South looking South =`L 25-2759 McKinlay & Klundt Appraisal Company Page 96 Photographs of Subject (photo page 8) ` '^s it. !wk, a Washington Street ► '� ir'' ,i ' South looking _ North Ib 1r � /- of jr T, r Orchard Drive West looking East L� 1 25-2759 McKinlay & Klundt Appraisal Company Page 97 Sale History On-line public records and/or a private data-reporting service were used to search for prior sales of the subject real estate. This research discovered no recorded conveyance of the subject during the three-years preceding this report's effective value date. Our client indicated the property did not convey. Moreover,the subject was not offered"For Sale" in the local MLS or other major data-reporting services during this same period. No sale or option agreements are now pending. Subject's Current Ownership Owner Information Source City of Twin Falls Assessor's Records Flood Hazard According to the appropriate Federal Emergency Management Agency(FEMA)flood map,which is identified below,the subject property is not located in a zone "A" special flood hazard. Flood Map Number 16083CI386C Flood Map Date 09/26/08 Flood Zone X Flood Maps published by FEMA are not precise. If anyone desires a precise determination of the subject's flood hazard classification, a professional engineer, licensed surveyor,or local governmental authority should make an exact determination. Real Estate Taxes Taxes and assessed values were taken from Twin Falls County Treasures and Assessor's Office County Twin Falls Parcel ID# RPT2701005012 Tax Year Exempt Total Assessed Value Exempt Total Tax Dollars Exempt Real estate taxes are a primary mechanism used by local government to gather the monies needed to fund operations. Too little funds can limit governmental services. Excessive tax burden can hinder real estate values. For the subject,taxes are not unduly burdensome. Zoning The subject property zoning has changed from "R-4 Residential Medium Density" to a"C-1 Commercial Highway by the City of Twin Falls,Idaho. The subject does conform to the zoning ordinance. This classification allows for a variety of commercial uses. 25-2759 McKinlay & Klundt Appraisal Company Page 98 Environmental Risks Disclosure During the course of this appraisal,the appraiser(s)did not detect or attempt to discover any environmental hazard on,under, above, or within the subject real estate. No overt evidence of any environmental hazard is apparent to the untrained eye. It should be known the appraiser(s)did not view the subject property with the intent of detecting any environmental hazard. It is beyond the expertise of the appraiser(s)to detect or determine the chemical nature of any substance or gas. No effort was made to dismantle or probe any part of the property to discover enclosed, encased, or concealed hazards. No effort was exerted to ascertain the presence of any environmental hazard including but not limited to the following. Asbestos Urea formaldehyde insulation Underground storage tanks Soil contamination or deficiencies Lead-based paint Toxic mold Radon PCB Chemical spills Fire resistant treated plywood(FRTP) Flood hazards are detailed elsewhere in this report. Except as enumerated herein,the appraiser(s)were not given the results of any environmental testing on or near the property being appraised. Neither observation of the subject property, or research conducted as part of a typical real estate appraisal suggest the presence of any hazardous substance or detrimental environmental condition affecting the subject. Nearby sites were not investigated to determine whether they are contaminated. Public information and other Internet sources were not researched to determine the presence of hazardous substances or detrimental environmental conditions in the subject's vicinity. Federal, State, and local laws concerning any hazardous substance or gas are sometimes contradictory. Therefore, any needed clean up should comply with the most stringent laws. The appraiser(s) are not informed or trained in environmental legalities. It is assumed no hazardous substance or gas adversely affects the subject real estate. If the subject is adversely influenced by a hazardous condition,then the subject's market value would be impaired. Recommendation The presence of any hazardous condition usually diminishes market value. The value opinion formed in this report assumes there is no environmental hazard affecting the subject real estate. No responsibility is assumed by the appraiser(s)or McKinlay&Mundt Appraisal Company for any hazard,or for any expertise required to discover any environmentally hazardous condition. Our client is urged to retain an expert in this field, if desired. 25-2759 McKinlay & Klundt Appraisal Company Page 99 Subject Descriptions Subject Site Address 929 Washington Street South Twin Falls,Idaho 83301 Dimensions See Plat Map Size 1.02+/-Acres 44,431+/- square feet Easements None known;none assumed Alley None Encroachments None known;none assumed Access Adequate Shape Rectangular Street Paving Asphalt paved Curbs& Gutters Intermitent curbs Sidewalks None Topography Almost level Gas Public Water&Sewer Private well and septic Major Flaws None noted Overall Features The land has typical physical features as compared to similar alternatives. Its overall location attributes are average relative to competitive parcels. This appraisal consists of one individual parcel containing 1.02+/-acres or 44,431+/-square feet. The subject property is a corner lot at the southeast corner of Washinton Street South and Orchard Drive West. There is a cell/radio tower on site that is owned the City of Twin Falls and will remain in their ownership for essential government communications. The parcel has minimal landscaping and asphalt parking area surrounding the improvement. There are concrete sidewalks spanning the front of the improvement to accommodate customer foot traffic. Descriptions of Existing The subject currently contains a 3,084+/- square foot general purpose commercial building built in approximately 1974. The west end of the building contains a living room,kitchen, sleeping barracks, office and a bathroom. The east side of the building contains a shop area with two large overhead doors and a restroom. The building was constructed on a concrete foundation using a wood frame with a brick veneer exterior and a metal roof, glass and metal entry doors in the office area and metal security doors in the shop area,vinyl windows and two 14'xl6'overhead doors. The subject has a gas forced air furnace that provides heat and air conditioning to the offices with the warehouse having gas space heaters. The office area is finished with textured and painted drywall, commercial flooring to include carpet and tile and fluorescent lighting. Overall,the subject property is in average condition and average utility. 25-2759 McKinlay & Klundt Appraisal Company Page 100 Analyses & Conclusions • • • Value Introduction For real estate consisting of land and building(s),there are three primary valuation methods -the cost approach, sales comparison approach,and income approach. Unless stated otherwise, only those considered applicable and necessary to produce credible results are developed in this report. 25-2759 McKinlay & Klundt Appraisal Company Page 101 Real Estate Cycles Real estate generally has four market cycles. "Understanding where the market is and forecasting the extent of duration of the cycle are important in projecting the pattern of future income."' These cycles are depicted below. Expansion Contraction Recession Recovery The red arrow depicts the appraiser(s) opinion of the subject's position in the market cycle. r Segment Name Characteristics I Growing demand, rental rates climbing above replacement cost, decreasing AB Expansion vacancy, concessions not prevalent, high profit potential stimulating much new construction i Stable to weakening demand, stable to weakening vacancy, small BC Contraction concessions beginning to occur, rents stable to mildly weakening, profit potential shrinking so new construction slowing CD Recession Stagnant to declining demand, vacancy growing, rental rates falling, significant concessions prevalent, new construction virtually halted DA Recovery Demand strengthening, vacancy shrinking, rental rates starting to climb, concessions shrinking, new construction beginning to occur Time until the next major point to 2 years 1 Advanced Concepts& Case Studies, pg 253,Appraisal Institute, copyright 2010 25-2759 McKinlay & Klundt Appraisal Company Page 102 Highest and Best Use Introduction A highest and best use identifies the most reasonably probable and appropriately supported use of the property appraised. Since market conditions change, a property's highest and best use may change as well. This analysis is an essential step in the determination of market value. Market dynamics determines a property's use and an appraisal values that use. Practically speaking,a highest and best use analysis forms a framework for the proper selection of comparables. There are two types of highest and best use. The first is highest and best use of land as though vacant. If a building already exists,the second variety is highest and best use as though now improved. The later considers whether the existing building should be retained as is, demolished,remodeled,renovated,repaired, enlarged, or converted to an alternate use. Both types require separate analyses. Current usage may or may not be different from the near future highest and best use. There are four main tests in a highest and best use analysis,which are summarized below. ➢ Legal permissibility-governmental requirements and limitations like zoning are considered as well as other legal issues like deed restrictions, easements, and leases. ➢ Physical attributes like size,design, and physical condition are weighed ➢ Financial feasibility is ascertained via either an implied or calculated method ➢ Maximum productivity is determined If more than one use survives the first three tests,the use that produces the highest, appropriately supported, positive value with the least risk is the highest and best use. Demand analyses can be categorized into two different levels of detail -Inferred and Fundamental. A fundamental analysis forecasts future demand from projections of broad demographic and economic data like population, income,and employment. Existing supply is inventoried. Then,the relationship of supply and demand is weighed to determine residual demand. If residual demand is positive,more of that property type is needed. Of course,the opposite is also true. An inferred analysis is based on local trends and patterns from which inferences are made. This type analysis presumes that recent past trends will continue for the near future. Sale prices,number of competitive listings, marketing intervals, and/or price changes for other similar properties infer there is adequate demand for the subject at a price level congruous with the available data. An inferred analysis emphasizes historical data while a fundamental analysis is based on expected future occurrences. There are two types of highest and best use -"as though now vacant"and"as though now improved". The former presumes the land is vacant and available for development. The latter considers whether the building should be retained as is,renovated,remodeled,repaired, enlarged, demolished, or converted to an alternate use. 25-2759 McKinlay & Klundt Appraisal Company Page 103 Highest and Best Use Timing of Use A crucial component of a highest and best use is timing. If the timing of a use is not now,when is it? When timing for a specific use cannot be identified,then that use is not the best. If the highest use is not within a decade,then the time-value of money usually precludes that use. When the timing of a use is within a few years,what is the interim use? Remaining dormant is a legitimate interim use. Most Likely User The most likely user is also important. Clearly,users of an age-restricted,multiunit residential structure have needs and preferences that are much different from young married couples with small children. Similarly,the most likely buyer of a handicap accessible home is a handicap person. This most-likely buyer would perceive the special physical features as beneficial,not detrimental. Preferences and needs of the most likely user affect value, so the most likely user should be identified to judge the extent that existing or proposed improvements fulfill those preferences or needs. Highest&Best As Though Now Vacant Land Physical Use A heavy industrial use Timing of Physical Use Immediately develop with the physical use Interim Use No Interim Use Market Participants Most Likely Buyer A pure investor seeking cash flow Most Likely User A tenant in a modest income group Highest&Best As Though Now Improved Physical Use Its current use Timing of Physical Use Immediate Interim Use No Interim Use Market Participants Most Likely Buyer A pure investor seeking cash flow Most Likely User A tenant in a modest income group The subject land"as though now vacant'has a market value that is less than the worth of the land and building together. This proves the improvements positively contribute to value. These improvements were designed to serve its current use; they are compatible with nearby uses. Local costs,prices, and rents do not justify major building alterations. Therefore,the improvements should be retained and used"as is". The lot contains improvements that require demolition in order to accommodate the proposed construction. Therefore,these improvements should be demolished. In light of the foregoing highest and best use determinations, comparables were selected with the same or similar highest and best use. This data is very influential while forming a value opinion for the property appraised. 25-2759 McKinlay & Klundt Appraisal Company Page 104 Highest and Best Use Timing of Use A crucial component of a highest and best use is timing. If the timing of a use is not now,when is it? When timing for a specific use cannot be identified,then that use is not the best. If the highest use is not within a decade,then the time-value of money usually precludes that use. When the timing of a use is within a few years,what is the interim use? Remaining dormant is a legitimate interim use. Most Likely User The most likely user is also important. Clearly,users of an age-restricted,multiunit residential structure have needs and preferences that are much different from young married couples with small children. Similarly,the most likely buyer of a handicap accessible home is a handicap person. This most-likely buyer would perceive the special physical features as beneficial,not detrimental. Preferences and needs of the most likely user affect value, so the most likely user should be identified to judge the extent that existing or proposed improvements fulfill those preferences or needs. Nationally-recognized users typically pay higher prices and rents as compared to local users. Highest&Best As Though Now Vacant Land Physical Use A Commercial Use Timing of Physical Use Immediately develop with the physical use Interim Use No Interim Use Market Participants Most Likely Buyer An secure income investor Most Likely User A local tenant with moderate assets Highest&Best As Though Now Improved Physical Use A Commercial Use Timing of Physical Use Immediate Interim Use No Interim Use Market Participants Most Likely Buyer A secure income investor Most Likely User A local tenant with modest assets The subject land"as though now vacant'has a market value that is less than the worth of the land and building together. This proves the improvements positively contribute to value. These improvements were designed to serve its current use; they are compatible with nearby uses. Local costs,prices, and rents do not justify major building alterations. Therefore,the improvements should be built. Considering the foregoing highest and best use determinations, comparables were selected with the same or similar highest and best use. This data is very influential while forming a value opinion for the property appraised. 25-2759 McKinlay & Klundt Appraisal Company Page 105 Land & Building Value 25-2759 McKinlay & Klundt Appraisal Company Page 106 Cost Approach The cost approach is most applicable for real estate consisting of land and a new, or like new,building. This approach tends to lack reliability when there is a large degree of depreciation. Since the subject structure is substantially depreciated due to its age and the fact there are few,if any,true land conveyances in the immediate area,the cost approach was not developed in this appraisal. 25-2759 McKinlay & Klundt Appraisal Company Page 107 Sales Comparison Approach Introduction In an appraisal,the real estate being appraised is referred to as the"subject"or"subject property". Properties possessing characteristics that are physically and locationally similar to the subject are called"comparables" or "comparable sales". In this approach,comparables are compared to the subject. Differences are noted. Dissimilarities between the subject and the comparables are categorized into elements of comparison. Adjustments, to compensate for dissimilarities, are next applied the sale prices of the comparable sales. Then,a value opinion for the subject is reconciled from the range in adjusted sale prices established by the comparables. Unless stated otherwise, all cited transactions are"arm's length" conveyances. An"arm's length"transaction is an agreement between unrelated parties with typical motivations in a competitive market. The sales comparison approach involves the procedure of comparing the subject property with actual market transactions and estimating from the market the amount the subject should bring if it were offered for sale on the open market. This analysis presents the market data in a sequence which demonstrates the differences between sales and the subject, and provides a basis for the value conclusion and adjustments applied. The adjustments are typically computed using square feet as a unit of comparison. Typical criteria considered are property rights conveyed,terms of sale, conditions of sale,time of sale, economic characteristics,location, size,zoning, and other physical characteristics. The Sales Comparison Approach is primarily based on the appraisal principle of substitution. Substitution is defined in The Dictionary of Real Estate Appraisal as follows: "The appraisal principle that states when several similar or commensurate commodities,goods, or services are available,the one with the lowest price will attract the greatest demand and widest distribution." Other appraisal principles which apply to this approach include supply and demand,balance, and externalities. The best method of valuing vacant land is the sales comparison approach. Sales of similar sites are gathered and compared to the parcel being appraised. Differences affecting value are noted. Adjustments to compensate for dissimilarities are applied applicable transactions. Adjusted comparables produce an indication of value for the subject parcel. Any factor can affect value. Those considered during this appraisal's land valuation process included yet are not limited to prominence of location, date of sale, size, shape, availability of utilities,zoning,topography,and access. Numerous sales were reviewed; however, only those deemed most comparable were selected for detailed analysis. All conveyed on an"arm's length"basis except if specifically noted otherwise. Land sales shown herein are presented on a dollar per square foot basis as a common denominator. An extensive search was made of the local market for sale comparables that were arm's length transactions, similar to the subject in highest and best use, and similar in conditions of the sale,time of sale, economic factors, and physical characteristics. The comparables,an adjustment grid and an explanation of adjustments can be found on the following pages. It is important to note that the Sales Comparison Approach was developed for the subject property. After research of the comparable sales there were no truly similar sales located in the area. The limited data of the Sales Comparison Approach is not considered to diminish the reliability of the value conclusion herein, and this report is fully conforming. 25-2759 McKinlay & Klundt Appraisal Company Page 108 Sale 1 Sale 1 EL Site Data Location Data Size: 23,174 Address: 169 Addison Avenue West Build to Land Ratio: 3.98 City: Twin Falls County: Twin Falls Building Data Effective Age: 10 Sales Data Condition: Average Grantor: Confidential GBA: 5,824 Grantee: Confidential Construction: Frame Sale Date: 06/22 Quality: Average Sales Price: $1,050,000 Financing Terms: Conventional Economic Indicators Cash Equivalent Price: $1,050,000 PGI: $66,000 Property Rights Conveyed: Fee Simple Vacancy: $6,600 Conditions of Sale: Arms Length EGI: $59,400 Verification: Confidential Expenses: $8,910 Days on Market: Unknown NOI: $50,490 Appraisal Indicators Overall Price Per Unit: $180.29 Comments: This is a sale had been used Gross Rent Multiplier: 15.91 as mechanic shop with associated office Capitalization Rate: 4.81% space. It was in average condition at the time of sale. WME[LS AND TIRES 25-2759 McKinlay & Klundt Appraisal Company Page 109 Sale 2 Sale 2 Site Data Location Data Size: 132,422 Address: 21330 Highway 30 Build to Land Ratio: 41.38 City: Filer County: Twin Falls Building Data Effective Age: 5 Sales Data Condition: Good Grantor: Confidential GBA: 3,200 Grantee: Confidential Construction: Frame Sale Date: 10/22 Quality: Average Sales Price: $685,000 Financing Terms: Cash Economic Indicators Cash Equivalent Price: $685,000 PGI: $42,000 Property Rights Conveyed: Leased Fee Vacancy: $2,100 Conditions of Sale: Arms Length EGI: $39,900 Verification: Confidential Expenses: $5,985 Days on Market: 12 NOI: $33,915 Appraisal Indicators Overall Price Per Unit: $214.06 Comments: This is a sale had one Gross Rent Multiplier: 16.31 building at the time of sale. The Capitalization Rate: 4.95% buillding was a shop/warehouse with associated office space. This sale is in the industiral/commercial area of Filer/Twin Falls. @milli w' 1 dd IU I -- w 25-2759 McKinlay & Klundt Appraisal Company Page 110 Sale 3 Sale 3 Site Data Location Data Size: 12,502 Address: 128 Blue Lakes Boulevard Build to Land Ratio: 4.22 City: Twin Falls County: Twin Falls Building Data Effective Age: 15 Sales Data Condition: Average Grantor: Confidential GBA: 2,960 Grantee: Confidential Construction: Frame Sale Date: 05/24 Quality: Average Sales Price: $683,001 Financing Terms: Confidential Economic Indicators Cash Equivalent Price: $613,236 PGI: $45,264 Property Rights Conveyed: Fee Simple Vacancy: $4,526 Conditions of Sale: Arms Length EGI: $40,738 Verification: Confidential Expenses: $6,111 Days on Market: Unknown NOI: $34,627 Appraisal Indicators Overall Price Per Unit: $207.17 Comments: This sale contained a single Gross Rent Multiplier: 13.55 building that was primarily shop space Capitalization Rate: 5.65% with an office area. The building was in average condition at the time of sale. The contract attributes $613,236 to the real property and $85,764 to personal property such as equipment, furniture 25-2759 McKinlay & Klundt Appraisal Company Page 111 Sale 4 Sal Site Data Location Data Size: 23,958 Address: 553 South Locust Street Build to Land Ratio: 7.99 City: Twin Falls County: Twin Falls Building Data Effective Age: 10 Sales Data Condition: Average Grantor: Confidential GBA: 3,000 Grantee: Confidential Construction: Frame Sale Date: 05/24 Quality: Average Sales Price: $619,000 Financing Terms: Owner Finance Economic Indicators Cash Equivalent Price: $619,000 PGI: $42,000 Property Rights Conveyed: Fee Simple Vacancy: $2,100 Conditions of Sale: Arms Length EGI: $39,900 Verification: MLS/County Expenses: $5,985 Days on Market: 92 NOI: $33,915 Appraisal Indicators Overall Price Per Unit: $206.33 Comments: The sale is improved with Gross Rent Multiplier: 14.74 one main building with mainly shop area Capitalization Rate: 5.48% nad associated office space. The building was in average condition at the time of sale. "" Tr :+ ice^ . 1ktr7� T1_. l a� 1►.�a'�,'yi ._ T-7a!s: LL 25-2759 McKinlay & Klundt Appraisal Company Page 112 Sale S Sale 5 Site Data Location Data Size: 174,240 Address: 659 Eastland Drive South Build to Land Ratio: 36.30 City: Twin Falls County: Twin Falls Building Data Effective Age: 15 Sales Data Condition: Average Grantor: Confidential GBA: 4,800 Grantee: Confidential Construction: Frame Sale Date: 08/24 Quality: Average Sales Price: $1,250,000 Financing Terms: Owner Finance Economic Indicators Cash Equivalent Price: $1,250,000 PGI: $76,800 Property Rights Conveyed: Fee Simple Vacancy: $3,840 Conditions of Sale: Arms Length EGI: $72,960 Verification: Confidential Expenses: $10,944 Days on Market: 85 NOI: $62,016 Appraisal Indicators Overall Price Per Unit: $260.42 Comments: The sale is improved with Gross Rent Multiplier: 16.28 one main building with mainly shop area Capitalization Rate: 4.96% nad associated office space in a mobile trailer. The building was in average condition at the time of sale. 25-2759 McKinlay & Klundt Appraisal Company Page 113 Sale 6 Sale 6 Site Data Location Data Size: 10,454 Address: 2158 4th Avenue East Build to Land Ratio: 3.32 City: Twin Falls County: Twin Falls Building Data Effective Age: 10 Sales Data Condition: Good Grantor: Confidential GBA: 3,150 Grantee: Confidential Construction: Frame Sale Date: 05/23 Quality: Average Sales Price: $595,000 Financing Terms: Owner Finance Economic Indicators Cash Equivalent Price: $595,000 PGI: $37,800 Property Rights Conveyed: Fee Simple Vacancy: $3,780 Conditions of Sale: Arms Length EGI: $34,020 Verification: Confidential Expenses: $5,103 Days on Market: 30 NOI: $28,917 Appraisal Indicators Overall Price Per Unit: $188.89 Comments: The sale is improved with Gross Rent Multiplier: 15.74 one main building with mainly shop area Capitalization Rate: 4.86% nad associated office space. The building was in good condition at the time of sale. i YCU 25-2759 McKinlay & Klundt Appraisal Company Page 114 Sale 7 Sale 7 Site Data Location Data Size: 113,256 Address: 1602 Eldridge Avenue Build to Land Ratio 42.67 City: Twin Falls County: Twin Falls Building Data Effective Age: 15 Sales Data Condition: Average Grantor: Confidential GBA: 2,654 Grantee: Confidential Construction: Frame Sale Date: 09/23 Quality: Average Sales Price: $700,000 Financing Terms: Conventional Economic Indicators Cash Equivalent Price: $700,000 PGI: $60,740 Property Rights Conveyed: Fee Simple Vacancy: $6,074 Conditions of Sale: Arms Length EGI: $54,666 Verification: Confidential Expenses: $8,200 Days on Market: Unknown NOI: $46,466 Appraisal Indicators Overall Price Per Unit: $263.75 Comments: The sale is improved with Gross Rent Multiplier: 11.52 one shop area and d associated office Capitalization Rate: 6.64% space. The building was in average condition at the time of sale. The sale also had some outside fenced RV storage that was included in the income portion. rT n� 25-2759 McKinlay & Klundt Appraisal Company Page 115 Summary o Im roved Sales Sale Location Date Sale Price Size(sf) Effective Building-to- Overall Price/SF Age/ Land Ratio Condition 1. 169 Addison 06/22 $1,050,000 5,824 10 Years 3.98:1 $180.29 Avenue West, Average Twin Falls,Idaho 2. 21330 Highway 09/22 $685,000 3,200 5 Years 41.38:1 $214.06 30,Filer,Idaho Good 3. 128 Blue Lakes 05/24 $613,236 2,960 15 Years 4.22:1 $207.17 Boulevard, Average Twin Falls,Idaho 4. 553 South Locust 05/24 $619,000 3,000 10 Years 7.99:1 $206.33 Street, Twin Average Falls,Idaho 5. 659 Eastland 08/24 $1,250,000 4,800 15 Years 36.30:1 $260.42 Drive South, Average Twin Falls,Idaho 6. 2158 4'Avenue 05/23 $595,000 3,150 10 Years 3.32:1 $188.89 East, Twin Falls, Average Idaho 7. 1602 Eldridge 09/23 $700,000 2,654 15 Years 42.67:1 $263.75 Avenue, Average Twin Falls,Idaho Sub. 929 Washington - - 3,084 15 Years 14.41:1 - Street South, Average Twin Falls,Idaho 25-2759 McKinlay & Klundt Appraisal Company Page 116 1 1 1 ' l l 1 • ' I I 1 �r 74, sit dp y I I d A Sales Comparison Approach Adjustment Grid As Is" SUMMARY OF Subject #1 #2 #3 #4 #5 #6 #7 COMPARABLES Date of Sale - 06122 10122 05124 1 05124 08124 05123 09123 Effective Age(Years) 15 10 5 15 10 15 10 15 Quality Average Average Average Average Average Average Average Average Condition Average Average Average Average Average Average Average Average Land-to-Building Ratio 14.41:1 3.98:1 41.38:1 4.22:1 7.99:1 36.30:1 3.32:1 42.67:1 Sale Price NA $1,0501000 $685,000 $613,236 $61900 $1,250,000 $595,000 $7001000 GBA Size(SF) 31084 51824 3,200 2,960 3,000 4$0 3,150 2,654 Price/SF $180.29 $214.06 $207.17 $206.33 $260.42 $188.89 $263.75 ADJUSTMENTS - - - - - - - Property Rights Fee Simple Fee Simple Leased Fee Fee Sim le Fee Simple Fee Simple Fee Simple Fee Sim le Adjusted Price/SF $180.29 $214.06 $207.17 $206.33 $260.42 $188.89 $263.75 CondlTerms - - - - - - - Market(Time) - Adjusted Price/SF $180.29 $214.06 $207.17 $206.33 $260.42 $188.89 $263.75 Location Similar Similar Similar Similar Similar Similar Similar Size Similar Similar Similar Similar Similar Similar Similar Effective Age ($40.02) ($71.28) ($23.00) ($45.81) ($2891) ($41.93) (S29.28) Quality Similar Similar Similar Similar Similar Similar Similar Condition Similar Similar Similar Similar Similar Similar Similar L:B Ratio $18.03 ($21.41) $20.72 $20.63 ($26.04) $18.89 (S26.38) Frontage and Access Similar Similar Similar Similar Similar Similar Similar ADJUSTED INDICATORS $158.29 $121.37 $204.90 $181.16 $205.47 $165.84 1 $208.10 Net Adjustment ($22.00) ($92.69) ($2,28) ($25,17) ($54.95) ($23.04) 1 (S55.65) Value Range $121.37 To $208.10 Mean $177.88 25-2759 McKinlay & Klundt Appraisal Company Page 118 Sales Comparison Approach Analysis & Conclusions "As Is" The adjustment is typically applied through either quantitative or qualitative analysis, or a combination of the two. Quantitative adjustments are often developed as dollar percentage amounts and are most creditable when there is sufficient data to perform a paired sales or statistical analysis. While we percent numerical adjustments in Sales Adjustment Grid,they are based on qualitative adjustment rather than empirical data as there is not sufficient data to develop a sound quantified estimate within a reasonable degree of confidence. Our qualitative ratings are based on a scale calibrated in inferior, similar and superior or on a scale calibrated in five percent increments with a minor adjustment considered to be five percent and substantial adjustment considered to be over 25%. Each rating is taken into consideration in the final reconciliation of value. Adjustments are based on our rating of each comparable sale in relation to the subject. If the comparable is superior to the subject the sales price is adjusted downward to reflect the subject's relative inferiority; if the comparable is in inferior, its price is adjusted upward. Price variances are typically attributed to the following factors: property rights,terms of sale, conditions of sale, date of sale, location, and physical characteristics. A discussion of these factors and how each property compares to the subject is as follows. The subject and all cited comparable sales share several characteristics. They all have similar types of current use. These commonalities justify inclusion of these transactions in this analysis. Often there are differences between the property appraised("the subject") and a comparable sale. When the dissimilarity affects value, an adjustment to the sale price of the comparable is necessary. The estimated site value was extracted during this approach to compare only estimated improvement costs of the comparables to the subject property. Then the value of the site from the cost approach will be added to the value of the improvements to arrive at a sales comparison opinion of value. Property ghts Agreements or laws create partial interests in real estate. A deed restriction or life estate usually reduces rights and value. If the subject is not affected by these limitations and a comparable is,then the comparable's sale price needs an upward property rights adjustment. In another situation,unfavorable leases eliminate a landlord's right to collect market rent, so the real estate sells for a below-market price. If the property appraised has no lease adversities and a comparable does have unfavorable leases,then the comparable requires upward adjustment. Unless stated otherwise,property rights are virtually the same for the subject and all cited conveyances. Hence,no adjustments are necessary for this element of comparison. Financing Sub-market financing is a common technique used to finance the acquisition of real estate during periods of high interest rates. When non-market financing is used,the financing may be favorable to the buyer so the sale price is inflated. The escalated price can be envisioned as a composite of the worth of real estate plus the value of advantageous financing. Since value created by financing is not real property,the contribution of the advantageous financing must be deducted from total sale price to derive market value for just the realty. On the opposite hand,there are instances where the buyer assumes unfavorable financing, so the sale price is diminished. In the latter case, an upward adjustment must be applied to the sale price of the comparable thusly deriving the market value of the real estate. Unless a statement is made to the contrary,non-market financing was not used to acquire any comparable sale cited in this report. Therefore,no compensations are needed for financing. Conditions of Sale An adjustment for conditions of sale is necessary when a criterion of market value is violated. It could compensate for unusual buyer or seller motivations. For instance,when a seller gives a buyer an atypical rebate, discount, credit, or something of value to induce a conveyance,the sale price is usually inflated. In this case, it is logical to deduct the worth of the giveback from the sale price. Residual sums represent the property's market value. In another scenario, a buyer may pay a premium to facilitate an assemblage. In this instance,the premium must be deducted from the sale price to derive market value for that conveyance. Unless stated otherwise,no adjustments are necessary for conditions of sale. 25-2759 McKinlay & Klundt Appraisal Company Page 119 Expenditure Post Sale This is a situation when a buyer is compelled to invest additional money into a property immediately after acquisition for some atypical reason. Post-sale invested sums are appropriately added to a comparable's sale price thereby producing an adjusted sale price. Examples are demolition costs or building-code compliance costs. Unless a contrary statement is made,no adjustments are necessary for post-sale expenditures. Market Conditions Adjustments for market conditions are commonly referred to as time adjustments,but this is misleading. Value does not change due to the passage of time; sometimes it remains stable. Often real estate values fluctuate due to changes in supply and demand, interest rates, employment,or inflation. This type adjustment compensates for change in market conditions between a sale's transaction date and a later point in time. All cited comparables are similar hence no adjustment was applied. Location Each property was rated to the subject for locational aspects such as value growth potential, access, and general desirability. Those transactions with superior locations were adjusted downward and vice versa. All sales are considered to be similar to the subject location,hence no adjustment is made. Physical Attributes A myriad of physical characteristics can affect value. Some examples are lot size,building size,physical condition of the building,functionality, and visual appeal. Those sales with superior physical qualities warrant downward adjustment and vice versa. Usually there is an inverse relationship between price and building size caused primarily by economies of scale associated with construction costs and size. As can be seen in the chart below,there is some correlation however all sales are considered to be within a reasonable range,hence no adjustment is made. . Price Per Sq. Ft. y 0.0058x+240.53 $300.00 $250.00 • .......................... $200.00 $150.00 • $100.00 $50,00 $0.00 - 0 1.000 2,000 3,000 4.000 5.000 6,000 7,000 Effective age took into consideration the condition of the comparables in relation to the subject. Better maintained or more modern buildings command higher prices. Each analyzed transaction was compared to the subject for physical condition and effective age based on that condition. The comparable sales improvements only are adjusted at 2.22%of the sales prices per year they differ from the subject. This percentage is based off a 45-year economic life and the effective age adjustments are based on the age-life method of depreciation. conomic Life Calculatio Comparable 1 2 3 4 5 6 7 Estimated Effective Age 10 5 15 10 15 10 15 Difference In Effective Age (10) (15) (5) (10) (5) (10) (5) Per Year Depreciation 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% 2.22% Effective Age %Adjustment -22.20% -33.30% -11.10% 1 -22.20% -11.10% 1 -22.20% -11.10% Effective Age Adjustment/ (S40.02) (S71.28) ( ) I (S45.81) ($28.91) IMMINIff (S29.28) 25-2759 McKinlay & Klundt Appraisal Company Page 120 Structures with larger proportions of interior finishing have higher construction costs and values than buildings with smaller ratios. Better maintained or more modern buildings obviously command higher prices. All sales are considered to be similar to the subject,hence no adjustment is made. The land to building ratio(L:B) is an index that reflects land use intensity. A large index signals more land is available for building expansion,parking, green space,or storage,hence often contributes more to value than a small index. Sales 1,3,4,and 6 were inferior,resulting in a 10%upward adjustment,while sales 2, 5 and 7 are superior resulting in a 10%downward adjustment. All sales were considered to be similar enough in frontage and access,hence no adjustment is needed. Value Indication Needed adjustments were explained above. These adjustments have been quantified and are shown in the prior table. Some of these adjustments are based upon the appraisers' professional judgment when data was insufficient to enable market extraction. The appraisers are well aware the cited conveyances are less than ideal comparisons. However, sales of more comparable properties were not discovered during our research. Selected transactions were chosen for analysis because they are all industrial buildings with office space suitable for commercial uses like the subject. The adjusted data varies from$121.37 to $208.10 per square foot, a rather wide range. After careful consideration of all factors pertaining to,and influencing the sales comparison approach and considering the location,condition, utility, and quality of the subject property, a value near the central tendency of the range indicated was deemed reasonable and justified. Both the per-unit and lump sum value indications reflect the worth of the subject building, site improvements and the land accordingly, Subject Total Sq.Ft. 3,084 Sq. Ft. @ $175.00 Per Sq. Ft._ $539,700 Indicated Market Value of Land&Improvements "As Is" $540,000 Via Sales Comparison Approach, say 25-2759 McKinlay & Klundt Appraisal Company Page 121 Income Approach Introduction The Income Approach to value is an appraisal technique "which converts anticipated benefits(dollar income or amenities)to be derived from the ownership of property into a value estimate". The following five steps are used in developing the income capitalization approach: 1. Estimated potential gross income(PGI). Potential gross income is the total potential income attributable to the property under full occupancy. Income for investment properties consist primarily of rent. There are two primary types of rent-contract rent and market rent. Contract rent is basically the actual rental income from the property under the terms of a lease. Market rent is the rental income that a property would be able to command in the open market as the date of the appraisal. 2. Estimated vacancy and collection loss. This is a deduction made to take into account space that is not leased during the economic life of the subject or rents that cannot be collected. This loss factor is deducted from PGI to establish effective gross income. 3. Forecast stabilized operating expenses. An estimate of operating expenses requires that the forecast reflect the prevailing expense structure that is found in market lease agreements. Expense structures could include full service,modified gross, or triple net. 4. Determine net operating income. Deduction of the operating expenses from effective gross income results in the net operating income(pre-tax income before debt service or depreciation). 5. Capitalizing the net operating income. The resulting net operating income is converted to a stabilized market value using a capitalization rate. Then,when applicable, adjustments are made to establish the"as is"value of the leased fee estate. Potential Gross Income To determine the potential gross income for the subject property,a survey of similar type buildings and leases is performed. An analysis of the data found is made to estimate the market rent per square foot per year for the subject. The comparables are indicated on the following pages. Market& Contract Rent-A Comparison Contract lease rates are generally at, or near market levels. Sub-market lease rates are rare, so value is not diminished. Supra-market lease rates do not exist, so value is not enhanced. Other lease terms are best described as mostly typical. Leases terms do not cause significant value impairment or supernormal value enhancement. Therefore,the value of the leased fee estate numerically approximates the value of the fee simple estate. Rental Data It is customary and prudent to establish a market rent for the subject presuming the property is vacant and available for lease on this report's effective value date. If the property is leased on the effective value date, a determination can be made whether contract rent equates to,is less than,or exceeds market rent. With this objective in mind, rental data is now presented. 25-2759 McKinlay & Klundt Appraisal Company Page 122 Lease I Lease 1 Location Data Address: 1887 East Highland Avenue City: Twin Falls County: Twin Falls • Building Data Effective Age 20 Condition: Fair Leased Area: 17,072 ONE OE Construction Type: Frame Quality: Average Lease Data Terms of Lease: Annual Comments: This had 10 individual Type of Lease: NNN suites ranging in size from 1,000 to Escalations & Concessions: Assumed 2,000 square feet. Verification: Confidential Lease Expiration: Unknown Appraisal Indicators Annual Rate/SF: $8.00 to $14.00 Lease 2 Lease 2 Location Data Address: 1775 Eldridge Avenue City: Twin Falls County: Twin Falls _ r _ Building Data I , Effective Age 5 Condition: Good Leased Area: 9,000 Construction Type: Frame Quality: Average Lease Data Terms of Lease: Annual Comments This was a large shop with Type of Lease: NNN some office space and a large yard. Escalations & Concessions: Assumed Verification: Confidential Lease Expiration: Unknown AppraisalIndicators Annual Rate/SF: $14.00 25-2759 McKinlay & Klundt Appraisal Company Page 123 Lease 3 Lease 3 Location Data Address: TBD Eldridge Avenue 11 City: Twin Falls County: Twin Falls Buildin Data Effective Age New Condition: Excellent Leased Area: 11,670 ! ``- Construction Type: Steel 0 11 0 r- Cl Cl n Quality: Good ooaoo _ a � Lease Data Terms of Lease: Annual Comments: This lease is a building Type of Lease: NNN currently under construction with a 7 Escalations & Concessions: Assumed year lease in place upon completion in Verification: Confidential August of 2020. It has two five year Lease Expiration: Unknown renewal options with a annual CPI index increase in rent. Appraisal Indicators Annual Rate/SF: $12.00 Lease 4 Location Data Address: 2008-2022 4th Avenue East City: Twin Falls County: Twin Falls Building Data Effective Age 20 ' Condition: Fair Leased Area: 12,450 Construction Type: Frame Quality: Average Lease Data Terms of Lease: Annual Comments: There is three main Type of Lease: NNN building improvements with office Escalations & Concessions: Assumed space but primarily shop/warehouse. Verification: Confidential Lease Expiration: Unknown Appraisal Indicators Annual Rate/SF: $7.00 to $13.00 25-2759 McKinlay & Klundt Appraisal Company Page 124 Lease 5 Lease 5 Location Data Address: 240 Eastland Drive City: Twin Falls County: Twin Falls BuDdinja Data Effective Age 2 Condition: Good Leased Area: 18,120 Construction Type: Steel Quality: Good Lease Data Terms of Lease: Annual Comments: This lease comparable Type of Lease: NNN contains several newer industrial flex Escalations & Concessions: Assumed buildings that are a mixture of Verification: Confidential professional office to shop area. There Lease Expiration: Varying are six tenants. Appraisal Indicators Annual Rate/SF: $12.60 to $19.68 Average $16.80 25-2759 McKinlay & Klundt Appraisal Company Page 125 Income Approach Rental Data Location Map hit %j i ' - 4 j Or- Orr low R ' 25-2759 McKinlay & Klundt Appraisal Company Page 126 Income Approach Summary o Lease Com arables # Location Size(sf) Effective Age/ Yearly Rate/SF Condition 1. 1887 East Highland 17,072 20 Years $8.00 to $14.00 Avenue,Twin Falls, Fair Idaho 2. 1775 Eldridge Avenue, 9,000 5 Years $14.00 Twin Falls, Idaho Good 3. TBD Eldridge Avenue, 11,670 New $12.00 Twin Falls, Idaho Excellent 4. 2008 41 Avenue East, 12,450 20 Years $7.00 to$13.00 Twin Falls, Idaho Fair 5. 240 Eastland Drive, 18,120 2 Years $12.60 to $19.68 Twin Falls, Idaho Good Conclusion of Market Rate and Potential Gross Income The income approach considered the gross building area for the subject property building for a total of 3,084+/- square feet. The comparables for the subject indicated an annual lease range of$7.00 to$19.68 per square foot. Rents for similar facilities typically fall in the $4 to $20+per square foot category in the market area. The leases are based on similar expense terms. The most typical arrangement is a triple net lease where the tenant is responsible for taxes, insurance and utilities. After careful consideration of the presented market data and other information available to the appraisers, it is our opinion an appropriate annual market lease for the subject property main building is $12.00 per square foot because of the subject's size and location. 25-2759 McKinlay & Klundt Appraisal Company Page 127 Income Approach Expense Commentary Vacancy and Collection Loss Vacancy and collection loss is an allowance for anticipated reductions in potential gross income attributed to vacancies,tenant turnover, and nonpayment of rent. The allowance is usually estimated as a percentage of the potential gross income, and takes into account individual property characteristics,quality of tenants, and anticipated supply and demand forces. According to discussion with real estate agents involved in the commercial market, it appears the local vacancy rate for similar space is relatively low. Furthermore,based on the rent survey we conducted of space comparable to the subject property, it appears that vacancy is low at the present time ranging from 2.5%to 10%. Considering these factors, it is our opinion that 5.00 percent is an appropriate long term estimate for vacancy for the subject property as it will be owner occupied. Operating Expenses Operating expenses are defined in The Appraisal of Real Estate as follows: "Operating expenses are the periodic expenditures necessary to maintain the real property and continue the production of the effective gross income." As noted,the rental rate concluded was based on triple net lease terms. Under these terms,landlord is responsible for management and allowance for replacement. The expenses are discussed and summarized as follows. Manageme The management expense category is a fee to take into account servicing the subject property. It includes accounting, advertising, legal fees,administrative,etc. Management fees for office,retail and warehouse buildings have been quoted at two to eight percent of effective gross income by management companies. A management fee near the middle of the range, or five percent,is concluded. Allowance for Expenses and Replacement. Prudent management would set aside expenses and reserves to replace building components which have a shorter than typical physical life span. This includes the cost to replace asphalt,HVAC,plumbing,roof, and other elements of the structure which expire before the building has reached its economic life. The items comprising reserves for replacement are based upon market research and professional judgment. Most property managers report that between two and twelve percent of effective gross income is adequate to cover allowance for replacement. A reserve factor of five percent is concluded. Although this expense and reserve allowance may not necessarily be adequate to cover all structural maintenance and repairs, it is consistent with typical investor parameters. 25-2759 McKinlay & Klundt Appraisal Company Page 128 Income Approach Capitalization In the appraisal profession,capitalization is the process of converting income into value. One method extracts a capitalization rate(also called a cap rate) from sales of similar property via the following formula. An extracted rate is then divided into the subject's net operating income(NOI)resulting in a value indication for the real estate being appraised. Net Operating Income / Sale Price = Cap Rate Implicit within a cap rate are all investor expectations about risk,return, and change. This methodology is simple to use, easy to explain,and directly reflects market behavior. Its simplicity is also a weakness because implicit expectations may not be scrutinized. 25-2759 McKinlay & Klundt Appraisal Company Page 129 Income Approach Mortgage-Equity Technique Real estate is customarily acquired with both debt and equity capital. The mortgage-equity technique recognizes this and constructs an overall capitalization rate(Ro). An overall cap rate can be calculated as a weighted average composed of the mortgage ratio(M),blended with the cost of the debt capital(Rm),plus the equity ratio(E) tempered by the return or rate necessary to attract equity capital(Re). The equity cap rate(Re), shown below,is just a first year cash-on-cash return. Four other major ownership benefits -rental growth, equity growth due to loan repayment,income tax benefits, and value growth all escalate total return. When these other factors are explicitly recognized,total return to equity over the entire ownership period,called equity yield(Ye),is usually much higher than the initial or going-in overall cap rate (Ro). Mortgage interest rates vary by property type and lender risk perceptions. Loan terms shown below are reasonably representative of market norms for borrowers with good credit. Borrowers with tarnished credit histories can expect to pay higher rates with lower loan to value ratios. However, a property's market value is not influenced by the tainted credit history of its current or prospective owner. Debt capital is now available for real estate like the subject at a fixed interest rate and level monthly payments for an initial multi-year period. Throughout the level payment period,the interest rate is expected to remain stable. Thereafter,the interest rate and payment are both expected to adjust annually. Different buyers have different purchasing criteria, so a range of reasonable equity returns and an approximate mid-point are illustrated. Current loan terms and first year demands on equity are shown below. Debt I Equity Mortgage Ratio (M) 75% Equity Ratio (E) 25% Interest Rate 7.50% Reasonable First Year Equity Return Re Range 6% to 8% Initial Fixed Rate Period (Yrs) 5 to 7 q Y ( ) g Amortization Period (Yrs) 20 First Year Equity 6.00% Loan Constant (Rm) 9.67% Return (Re), Say Using the above information, the following mortgage-equity technique constructs an overall cap rate (Ro). (M) x (Rm) _ (M) (Rm) => 75% x 9.67% = 7.25% (E) x (Re) _ (E) (Re) => 25% x 6.00% = 1.50% Summation = Ro => Ro = 8.75% Say Ro = 8.75% 25-2759 McKinlay & Klundt Appraisal Company Page 130 Income Approach Underwriting Method The underwriting method(debt coverage ratio-DCR),provides a check of reasonableness with the other capitalization abstraction methods. These calculations are based on lending requirements. In order to derive a capitalization rate using this method,the required debt-coverage ratio is multiplied by the mortgage constant which is multiplied by the loan to value percentage. Market standards are typically a 1.20 to 1.25 debt coverage ratio and 7.50%nominal interest rate over 20 years with monthly payments with 75%loan to value. Based on the charts below it does provide support for the market abstraction method. Following is the capitalization rate can be calculated using this technique as follows. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . DCR Method Loan Ratio 75% = M Ro = Rm x M x DCR = 9.06% Loan Constant 9.67% = Rm Debt Coverage 1.25 = DCR Io / Ro = Vo = One component of an overall rate, devised via the mortgage-equity technique,is the first year cash-on-cash equity return shown above. Real estate competes with other investments for equity capital. Hence,it is prudent to consider returns offered by alternate investments. 25-2759 McKinlay & Klundt Appraisal Company Page 131 Income Approach Certificates of Deposit(CDs) are shorter term, safer, and more liquid than real estate. On the opposite hand,CDs do not enjoy income tax benefits like depreciation deductions and potential capital gains treatment. On an overall basis, appropriate yields for real estate, similar to the subject, significantly exceed the CD rates exhibited below. Yields on Aaa and Baa corporate bonds are less risky than real estate. Moreover,they are more liquid than real estate. Like CD's, corporate bonds do not enjoy depreciation deductions or capital gains treatment. A fitting yield for real estate like the subject should significantly exceeds Baa bonds. Economic Indicators Bankrate. Certificate of Deposit-2-year APY 4.03% Certificate of Deposit-5-year APY 4.10% RealtyRates.com (for real estate like subject, prior quarter data) Mortgages (min) 6.65% Mortgages (max) 7.12% Mortgages (avg) 6.71% Overall Cap Rates 6.20% Equity Cap Rates 6.50% Wall Street Journal Prime Rate 7.50% Recent Down Jones Industrial Avg 41,952 25-2759 McKinlay & Klundt Appraisal Company Page 132 Income Approach Investor Surveys Several notable organizations query active real estate participants to determine their investment criteria presuming an acquisition during the next quarter. Survey respondents are typically pension funds,major real estate advisory firms, insurance companies, large banks,and leading developers. It should be known the survey responses are expectations,not historical figure. Moreover,these investors only acquire newer, large scale,institutional-grade real estate. Whether the subject possesses similar risk characteristics is a moot issue. Several organizations publish the results of these surveys. The following table exhibits key figures for several property types. PwC Investor Survey,Q3 2023 Rational Mall CBD DAke 11ateltouse Aparttstertl Q3 2023 Q2 2023 Q3 2023 Q2 2023 1 Q3 2023 Q2 2023 Q3 2023 Q2 2023 Discount Rate' Range 114,i 6.00-13.00 6,00-13.00 6.50-10 00 6.00-9,00 5,25-8.00 S.25-800 5.75-8.00 S.7S-8.00 Average trit,1 8.40 7.90 7.63 713 6.63 6A8 6.77 6.63 Change-bp-,) +50 +40 +5 +14 Overall Cap Rate IOAR►' Range 1%l 500-14.00 5.00-12-50 425-850 4.25-7.50 3.00-6.50 3.00-7,00 3.75-8.00 3.75-!AO Average(%) 7.60 7.28 6.19 sm 4.97 4.96 5.28 5.25 Change fto +32 +31 +1 +3 Residual Cap Rate Range 1%1 5.00-14.00 5,00-12.50 5.00-9.00 5.00-8.50 4,00-6.50 4.00-6.50 4.00-8.00 4,00-8.00 Average(%1 7.73 7.43 6.50 6-33 5.38 5.31 5.67 5.58 Change(bpsl +30 +17 +7 +9 4 Rate on urdeveraged,all cash transactions.Defidtsont bps--barn point.Discount Rate - a rate of retwn on captal used to convert future payments or receipts into present value;assumes an all cash transaction,based an annual yearend compounding Overall Cap Rate(OdsR) nasal rate of return n snag cash transacton. Roudual Cap Ratio an oswall capnalszstws rate usod to ostrmato the rosab price of a property,tesudy applad to tta anticipated stabixed ncorna for rho year beyond I:he hu klrvJ period also taped te+mnal capitalitawn rate Suvey invdves institutgnolgade properties Sowce-PvK Investur Survey.penarsal survey cordsscted by P*C during July 2023.For v ncription s lormation,please visa htlpsJlirsvestarsurveypvsc.cssml Rates of return on alternate investments and historical sales are not the only factors affecting overall cap rates. Expectations of the future are equally important. These expectations include but are not limited to inflation, taxation, governmental policy, environmental concerns, and the general relationship between supply&demand. The overall cap rate displayed above for the subject recognizes several aspects. A weakness to this cap rate is that they are derived on a national basis and not very specific to smaller communities such as Twin Falls, Idaho. 25-2759 McKinlay & Klundt Appraisal Company Page 133 Income Approach Market Extraction None of the cited sales published any meaningful income and expense information. In fact,the majority of the spaces were owner-occupied or vacant when the properties conveyed. As such, a capitalization rate could not be extracted from these sales. Review of additional sales revealed no additional information about cap rates for real estate, like the subject, in this market area. To extract an overall cap rate from market evidence,the following data was considered. When necessary,this data was tempered to enhance consistency. APITALIZATION RATE SUMMARY Date of Overall Sale Location Size (SF) Rate 6/22 169 Addison Avenue West, Twin Falls, Idaho 5,824 4.81% 9/22 21330 Highway 30, Filer, Idaho 3,200 4.95% 05/24 128 Blue Lakes Boulevard, Twin Falls, Idaho 2,960 5.65% 05/24 553 South Locust Street, Twin Falls, Idaho 3,000 5.48% 08/24 659 Eastland Drive South, Twin Falls, Idaho 4,800 4.96% 05/23 2158 4th Avenue East, Twin Falls, Idaho 3,150 4.86% 09/23 1602 Eldridge Avenue, Twin Falls, Idaho 2,654 6.64% 5.34% Market extracted overall cap rates vary from a low of 4.86%to 6.64%high with a 5.34%average. Historical sales were not the sole determinant considered while selecting a fitting rate for the subject. Expectations of the future are equally important. These expectations include but are not limited to inflation,taxation, governmental policy, environmental concerns, and the general relationship between supply& demand. The overall cap rate displayed below for the subject recognizes several considerations. 25-2759 McKinlay & Klundt Appraisal Company Page 134 Income Approach Capitalization Rate Selection Several investment attributes were considered while selecting an overall cap rate(Ro). Again,Ro is used to convert the subject's net operating income(NOI) into value. Investment attributes affect risk,which is major factor in the selection of an appropriate cap rate. When risk is low,a commensurate cap rate should be low, and vice versa. Overall Cap Rate Considerations (for real estate similar to subject) Past maintenance Typical. Replacements Minimal. Current leases Absolute net; tenant(s)pay most or all expenses Supply&demand Supply and demand about balanced Expectations of near future net income growth Average Expectations of near future value growth Average Expected new competitive supply Low Mortgage interest rates Low Local unemployment Low,under 5% Possible interest rate hike over the next several years. This Other risk influences risk is minimal as the Federal Reserve has indicated growth in the world economy is slow,which should slow any large interest rate hikes domestically. Overall risk Moderate. Four different methods were employed to properly select a capitalization rate. The Mortgage Equity technique arrived at an 8.75%capitalization rate. The Underwriting Method arrived at a 9.06%capitalization rate. The Investor Survey indicated a variety of investment building capitalization rates from 3.30%to 10.00%with an average of 5.50%. The Investor Survey indicated a variety of investment building capitalization rates from 3.00% to 10.00%with an average of 5.50%. Market extracted overall cap rates vary from a low of 4.86%to 6.64%high with a 5.34%average. Taking into consideration all methods utilized,we have concluded that a rate near the central tendency of the range is appropriate because of its condition and location;hence a 6.00 percent is a supported rate for the subject property. 25-2759 McKinlay & Klundt Appraisal Company Page 135 Income Approach Income Operating Statement "As Is" This is the resulting income after allowance for vacancy and collection loss has been withheld, and after all operating expenses have been deducted. The income approach analysis takes into consideration the subject property potential income"As Is". The net operating income is shown on the following operating statement. Gross Potential Annual Market Rent ...................................... ................... ............... .... ................. .. $37,008 ------------- Total Gross Potential Income-Annual ............... ....................... ................... ............... .... .................... $37,008 100.0% Less Vacancy&Collection Loss .................... ....................... ................... ............... .... 5.00% -1,850 5.0% ------------- Effective Gross Income-Annual .......................... ....................... ................... ............... .... .................... $35,158 - - ----- - ---------- ;Less Expenses Management ............................ ................. ....................... 5.00% .... 0 1,758 Total Expense Allowance.............. ................. ....................... 5.00% .... 0 1,758 ------------- ------------- Total Expenses ................................... ....................... ................... $0 $3,516 -3,516 9.5% ------------- ---------- Net Operating Income ................................... $31,642 85.5% Value Indication In review,risk associated with physical attributes is normal due to proper maintenance of the building. All issues necessary to produce a value indication via this approach have been presented and explained. After careful consideration of all factors pertaining to and influencing the income approach,the following formula capitalizes or converts net income into value. NOI $31,642 Value = _ $527,367 Ro 6.00% Indicated Market Value of Land&Improvements `As Is _ $530,000 Via Income Approach, say 25-2759 McKinlay & Klundt Appraisal Company Page 136 Reconciliation All salient aspects of the subject property have been presented and discussed. Zoning uses,requirements and limitations were considered. If part of the scope of work,the subject's Highest and Best Use was determined. Appropriate valuation techniques were processed. Applicable approaches produced the following results: Value Indications Cost Approach Not Applicable Sales Comparison $540,000 Income Approach $530,000 This appraisal was assigned to form an opinion of market value of the proposed subject property for sole use of City of Twin Falls. The Sales Comparison(Market)Approach and Income Approach were completed with each approach having strengths and weaknesses. Since the subject structure is substantially depreciated due to its age and the fact there are few, if any,true land conveyances in the immediate area,the cost approach was not developed in this appraisal. In the sales comparison approach to value, sales of similar type properties are compared to the property being appraised. This approach is very significant because it directly reflects the actions of buyers and sellers in the marketplace. It reflects economic conditions, acceptance, or rejection of various features, and trends of general desirability. This methodology is a true measure of supply and demand, accounting for all influential forces affecting the market. Therefore,this value indication was given weight in this report. The income approach is most appropriate where the primary acquisition criterion is a flow of income dollars. This methodology forecasts income that is converted into value via capitalization. It is appropriate for properties bought by an investor. An investor generally purchases real estate for cash flow and future reversion. Net income and capitalization rates are of importance to this buyer type. In this appraisal,this approach was given weight. The approaches are both independent and interdependent. Each approach is independently processed,yet many of the same variables, like building size,are used throughout both three methods,hence the interdependence. After careful consideration of all factors pertaining to, and influencing value,the data and analysis thereof firmly supports the following market value conclusion for the subject real estate, as February 21,2025,the date of inspection,is: $535,000 Market Value"As Is" 25-2759 McKinlay & Klundt Appraisal Company Page 137 Exposure & Marketing Time Terminology abounds in the real estate appraisal profession. Two related but different concepts that are often confused are Exposure Time and Marketing Time. USPAP specifically addresses the confusion. Definition Explanation "The estimated length of time the property interest being Backward looking,ends on Exposure Time appraised would have been offered on the market prior to the the effective value date. (Statement 6) hypothetical consummation of a sale at market value on the Based on factual past events effective date of the appraisal". ' "An opinion of the amount of time it might take to sell a real or Forward looking, starts on the Marketing Time effective value date. A (Advisory personal property interest at the concluded market value forecast based on Opinion 7) during the period immediately after the effective date of the expectancies of future appraisal . occurrences. Marketing time and exposure time are both influenced by price. That is, a prudent buyer could be enticed to acquire the property in less time if the price were less. Hence,the time span cited below coincides with the value opinion(s) formed herein. USPAP Standard rule 1-2(c)(iv)requires an opinion of exposure time,not marketing time,when the purpose of the appraisal is to estimate market value. In the recent past,the volume of competitive properties offered for sale, sale prices, and vacancy rates have fluctuated little. Sale concessions have not been prevalent. In light thereof, an estimated exposure time for the subject is 6 to 18 months assuming competitive pricing and prudent marketing efforts. A marketing time estimate is a forecast of a future occurrence. History should be considered as a guide,but anticipation of future events&market circumstances should be the prime determinant. Overall market conditions are expected to remain essentially stable, so a marketing interval between 6 and 18 months is predicted for the subject. 25-2759 McKinlay & Klundt Appraisal Company Page 138 Certification The appraisers signing this report make the following certifications to the best of their knowledge and belief. ➢ The statements of fact contained in this report are true and correct. ➢ Reported analyses,opinions, and conclusions are limited only by the assumptions and limiting conditions contained within this report, and are the appraisers'personal, impartial, and unbiased professional analyses, opinions,and conclusions. ➢ The appraisers have no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved. ➢ The appraisers have no bias with respect to the property that is the subject of this report, or to the parties involved with this assignment. ➢ This engagement is not contingent upon developing or reporting predetermined results. ➢ Compensation paid to the appraisers is not contingent upon the development or reporting of a predetermined value, or direction in value that favors the cause of the client,the amount of the value opinion,the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of the appraisal. ➢ Reported analyses,opinions, and conclusions were developed, and this report was prepared in conformity with the Uniform Standards of Professional Appraisal Practice(USPAP) ➢ A statement regarding observation of the subject property by each appraiser is listed below. None of the appraisers is a professional property inspector. Furthermore,none of the appraisers has formal training in the use of tools or instruments as part of a professional property inspection. Observations by one or more of the appraisers, if any,was limited to just those physical features and attributes that are not hidden or obscure in any fashion by any object or weather condition. None of the appraisers used any tools or instruments, beyond those typically used by appraisers to probe, study, investigate,detect,or discover any physical feature or attribute that was not clearly visible on the date the property was observed. Appraisers Observations Travis Klundt Adequate Interior& Exterior Viewing Dave McKinlay Exterior Viewing Only ➢ No one provided significant real property appraisal assistance to the appraiser(s) signing this certification. ➢ The appraisers have performed services, as an appraiser,regarding the property that is the subject of this report during the three-year period immediately preceding acceptance of this assignment. 25-2759 McKinlay & Klundt Appraisal Company Page 139 Certification ➢ Use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. ➢ As of the date of this report, Travis Klundt has completed the continuing education program for Designated Members of the Appraisal Institute. ➢ After careful consideration of all factors pertaining to and influencing value,the data, and analysis thereof firmly supports the following final value opinion(s)for the subject property as of February 21,2025 $535,000 Market Value"As Is" Dave McKinlay Travis Klundt Certified General Appraiser-71 Certified General Appraiser-2212 McKinlay&Klundt Appraisal Co. McKinlay&Klundt Appraisal Co. License Expiration Date: 04/08/25 License Expiration Date: 01/13/26 25-2759 McKinlay & Klundt Appraisal Company Page 140 Addenda * e • Digital Images Our world is rapidly shifting to a global economy in which technology and e-commerce play major roles. Digitized signatures and digital photographs are key elements of this shift. This appraisal may contain digital photographs, which are true and accurate representations. Brightness and/or contrast of these images may have been adjusted to enhance visibility when lighting conditions were too light or too dark. However,the content of these images was not altered or augmented in any way. Digital signatures may be affixed to this document. In this document,a digital signature is a reproduction of the appraiser's actual signature. 25-2759 McKinlay & Klundt Appraisal Company Page 141 Technical Qualifications Dave McVinlay Education: B.S.Degree,Animal Science,Agronomy,Ag.Econ. Brigham Young University, 1970 State of Idaho Real Estate License(inactive) State of Idaho, 1990 IDAHO CERTIFIED GENERAL APPRAISER CGA-71 Specialized Background: -College courses in Farm Appraisal and Valuation -Workshops and seminars on Appraisal,Irrigation and Ag Credit sponsored by the Federal Land Bank of Spokane -Seminars and courses sponsored by the American Society of Farm Managers and Rural Appraisers and American Institute of Real Estate Appraisers including: Report Writing and Eminent Domain Seminars Litigation Valuation Seminar Fundamentals of Rural Appraisal--A-10 Principles of Rural Appraisal--Course A-20 Code of Ethics and Standards--A-12(Up-to-date) Certification School--A-45 Eminent Domain&Income Approach Seminar Residential Appraisal-Course 3 (material) USPAP Revisions(Up-to-date) Ranch Appraisal Seminar Dairy Valuation Seminar Agricultural Chattel Appraisal Seminar Rural Residential Appraisal Seminar Rural Business Valuation Seminar Advanced Rural Appraisal--Course A-30 Conservation Easements Seminar -Numerous other related courses,seminars and personal study -Real Estate Essentials-College of Southern Idaho, 1990 -Real Estate Practices-College of Southern Idaho, 1990 Appraisal Experience: -Designated to perform appraisals for the Federal Land Bank of Spokane-October, 1970 -Sixteen years of appraisal and credit experience with the Land Bank system involving management,training,and appraisal review functions -Independent fee appraisals for FmHA(FSA),FCS,Farmer Mac,various private concerns,commercial banks,attorneys,and financial institutions -Over 45 years experience in the appraisal field -I am a member of the American Society of Farm Managers and Rural Appraisers Area and Type of Appraisals: -Performed appraisals in Idaho,Montana,Oregon,Washington,Utah,and Nevada with extensive experience in Southern Idaho on farms,ranches,agri-business,residential and commercial properties 25-2759 McKinlay & Klundt Appraisal Company Page 142 Technical Qualifications Travis Klundt Education: B.S.Degree,Criminal Justice Administration Boise State University,2003 IDAHO CERTIFIED GENERAL APPRAISER CGA-2212 IDAHO REAL ESTATE APPRAISAL BOARD MEMBER 08/10 To 08/12 Specialized Background: -Seminars and courses sponsored by the Appraisal Institute,American Society of Farm Managers and Rural Appraisers and American Institute of Real Estate Appraisers,and Institute of Real Estate Appraisal Studies including: Appraisal Institute-General Appraiser Income Capitalization I Appraisal Institute-General Appraiser Income Capitalization 11 Appraisal Institute-General Appraiser Market Analysis and Highest&Best Use Appraisal Institute-Advance Report Writing and Valuation Analysis Appraisal Institute-Advance Sales and Cost Approach Appraisal Institute-Advance Income Capitalization Appraisal Institute-Advance Applications Appraisal Institute-Appraisal Challenges in Declining Markets Appraisal Institute-Uniform Appraisal Standards for Federal Land Acquisitions Appraisal Institute-Uniform Appraisal Dataset from Fannie Mae and Freddie Mac Appraisal Institute-Uniform Appraisal Data Aftereffects: Efficiency vs Obligation Appraisal Institute-General Demonstration Report-Capstone Appraisal Institute-Fundamentals of Separating Real Property,Personal Property and Intangible Business Assets Appraisal Institute-Practical Highest and Best Use Appraisal Institute-Valuation of Accessory Dwelling Units Appraisal Institute-Supervisory Appraiser/Trainee Appraiser Course Appraisal Institute-The Discounted Cash Flow Appraisal Institute-Practical Applications of the Residential Sales Comparison Approach ASFMRA-Fundamentals of Rural Appraisal--A-100 ASFMRA-Intermediate Approaches to Value of Rural Appraisal--Course A-200 ASFMRA-Direct Income Capitalization A-270 ASFMRA-General Appraiser Site Valuation and Cost Approach ASFMRA-1031 Exchange Analysis ASFMRA-Valuation of Conservation Easements and Partial Interests in Real Estate ASFMRA-The Valuation of Intangible and Non-Financial Assets ASFMRA-Eminent Domain ASFMRA-Valuing Specialty Livestock Facilities;Dairy Farms ASFMRA-Practice Rural Appraisal Work Problems: Three Approaches to Value ASFMRA-Appraisal of Water Rights ASFMRA-Valuation of Lifestyle and Trophy Properties ASFMRA-Appraising Agricultural Land In Transition ASFMRA-Introduction to Cannabis Operations and Valuation ASFMRA-Appraising Ag Facilities:Feedlot Seminar ASFMRA-Income Approach Applications AMSMRA-Appraisals Through The Eyes Of The Reviewer AMSMRA-Cost Estimating USPAP USPAP Update Institute of Real Estate Appraisal Studies-Fundamentals of Real Estate Appraisals Institute of Real Estate Appraisal Studies--Residential Appraisal Techniques I Institute of Real Estate Appraisal Studies--Highest and Best Use Numerous other related courses,seminars and personal study Appraisal Experience: -Twenty-One years of appraisal experience and appraisal review functions I am a member of the Appraisal Institute and in the process of obtaining MAI. Area and Type of Appraisals: -Performed appraisals and selling in Idaho with experience in Southern Idaho on farms,ranches, agri-business,residential,commercial properties,industrial properties and special use properties. 25-2759 McKinlay & Klundt Appraisal Company Page 143 Client List: -Wells Fargo,US Bank,Key Bank,First Federal Savings Bank,Zions Bank,D.L.Evans Banks, Farmers National Bank,Bank of Commerce,Citizens Community Bank,Bank of Idaho,Banner Bank,Farm Service Agency,Agri-Access,MetLife Investments,Farm Service Agency,Local City Governments,Intermountain Community Bank,Private Attorneys&Accountants,Estate Planning and numerous more not mentioned. 25-2759 McKinlay & Klundt Appraisal Company Page 144 Engagement Letter Mitch Humble <hlhumble4tfid org> Fri,Jan 17,2025 at 3:29 PM To:Travis Klundt<travisklundtggmml.com> Ti.iviti, Thanks for talking with me today about our old fire station.I think the$750 price and the mid-February timeline work well for the City.Will you go ahead and update that appraisal for us?Thanks Travis and let me know if you need anything else from me. Mitch Mitchel Humble. CM (HNHimiHis) Deputy City Manager City of Twin Falls Email: mhumbk✓ t id.ore Phone:208-735-7342 203 Main Avenue East, Twin Falls,ID 93303 0 www.tAd.ory 25-2759 McKinlay & Klundt Appraisal Company Page 145 Copyright Protection ©Copyright 2025 McKinlay&Klundt Appraisal Company Twin Falls, Idaho 83303 All Rights Reserved. No part of this document may be reproduced,nor may any portion be incorporated into any information retrieval system without written permission from McKinlay&Klundt Appraisal Company,the copyright holder. The descriptions, analyses,and conclusions stated herein are intended for the exclusive use of our client, City of Twin Falls, and other explicitly identified intended users, solely for the intended use stated in this document. McKinlay&Klundt Appraisal Company retains all rights,title, and interests in all trademarks,trade names,trade secrets, data, conclusions, opinions, valuations,and other information included in, arising out of,or in any way related to this appraisal. No person or entity shall be entitled to break down, strip out,mine,or disseminate any component or portion of this report, including,but not limited to any valuations, opinions, data compilations, or conclusions. This report and all its contents is a culmination of intellectual and professional experiences, education,personal investigations, and know-how, which shall at all times remain the property of McKinlay&Klundt Appraisal Company,its sole owner. End of Report 25-2759 McKinlay & Klundt Appraisal Company Page 146