exv99w3

Land Value

Building Value

Taxable Value

$2,854,500

$12,006,500

$14,861,000

June 8, 2011

Mr. Trent Johnson
Vice President
CONCAP EQUITIES, INC.
4582 South Ulster Street, Suite 1100
Denver, CO 80237


Re:		Appraisal of Cedar Rim Apartments 7920 110th Avenue SE Newcastle, Washington 98056 KTR No. 11-1-00129

Dear Mr. Johnson:

KTR Real Estate Advisors LLC (“KTR”) has completed a self contained appraisal of the above-referenced property as requested by our May 18, 2011 engagement letter. The purpose of this assignment is to estimate the Market Value of the Leased Fee Interest in the subject property as of June 1, 2011. The property was inspected by a staff member of KTR on March 4, 2011, when the property was last appraised by KTR. The report has been prepared for CONCAP EQUITIES, INC. for client’s use in asset valuation and financial reporting purposes.

Situated as noted above, the subject property consists of a 4.37-acre site improved with a 104-unit, garden-style apartment complex. The subject was developed in 1981 and contains 109,824 square feet of rentable area. The property is operating at stabilized occupancy and is in good physical condition. The subject property is more fully described, legally and physically, within the attached report.

Based on the analysis contained in the attached report, the Market Value of the Leased Fee Interest in the subject property, as of June 1, 2011 is:

ELEVEN MILLION SEVEN HUNDRED THOUSAND DOLLARS
($11,700,000)

EXTRAORDINARY ASSUMPTION

KTR previously inspected the subject property on March 4, 2011. The scope of work of this appraisal did not include a physical inspection of the subject property. The values derived herein are based on the extraordinary assumption that the physical condition of the subject property has not materially changed since the date of our last inspection. Should this assumption be incorrect, the values reported herein may be materially impacted.

The attached report, in its entirety, including all assumptions and limiting conditions, which is an integral part of, and inseparable from, this transmittal letter, contains the data, information, analyses and calculations upon which the value conclusion indicated herein are based. The report was prepared in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP) as set forth by the Appraisal Foundation and in accordance with the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute.

575 Lexington Avenue, New York, NY 10022

TEL 212.906.9400 • FAX 212.935.5935



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Page ii

CERTIFICATE OF APPRAISAL

We, Terence Tener, MAI, ASA, Thomas J. Tener and Shaun Kest certify that to the best of our knowledge and belief:

The statements of fact contained in this report are true and correct.

The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal, unbiased professional analyses, opinions, and conclusions.

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

Our compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event.

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

Shaun Kest has made a personal inspection of the property that is the subject of this report.

Terence Tener, MAI, ASA and Thomas J. Tener have not made a personal inspection of the property that is the subject of this report.

This appraisal was not prepared in conjunction with a request for a specific value or a value within a given range or predicated upon loan approval.

The reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute.

The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.

As of the date of this report, Terence Tener, MAI, ASA has completed the continuing education program of the Appraisal Institute.

Shaun Kest has been temporarily certified to transact business as a Real Estate General Appraiser (License No. 9101922).

Terence Tener, MAI, ASA, Thomas Tener and Shaun Kest have extensive experience in the appraisal of similar properties.

We have appraised or provided any other services relative to the subject property in the past three years.

KTR REAL ESTATE ADVISORS LLC

By:

Terence Tener, MAI, ASA

By:

Thomas J. Tener

By:

Shaun Kest

Managing Partner

Appraiser



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Page iii

BASIC ASSUMPTIONS AND LIMITING CONDITIONS

This appraisal report is subject to the following assumptions and limiting conditions:

1.		No responsibility is assumed for the legal description or for matters including legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated.

2.		The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated.

3.		Responsible ownership and competent property management are assumed.

4.		The information furnished by others is believed to be reliable. However, no warranty is given for its accuracy.

5.		All engineering is assumed to be correct. The plot plans and illustrative material in this report are included only to assist the reader in visualizing the property.

6.		It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them.

7.		It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and laws unless noncompliance is stated, defined, and considered in the appraisal report.

8.		It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless nonconformity has been stated, defined, and considered in the appraisal report.

9.		It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government or private entity or organization have been or can be obtained or renewed for any use on which the value estimate contained in this report is based.

10.		It is assumed that the utilization of the land and improvements is within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report.

11.		The distribution, if any, of the total valuation in this report between land and improvements applies only under the stated program of utilization. The separate allocations for land and buildings must not be used in conjunction with any other appraisal and are invalid if so used.

12.		Unless otherwise stated, possession of this report, or a copy thereof, does not carry with it the right of publication.

13.		The appraiser, by reason of this appraisal, is not required to give further consultation, testimony, or be in attendance in court with reference to the property in question unless arrangements have been previously made.

14.		Unless otherwise stated, neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraiser, or the firm with which the appraiser is connected) shall be disseminated to the public through advertising, public relations, news, sales, or other media without prior written consent and approval of the appraisers.



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Page iv

15.		Unless otherwise stated in this report, the existence of hazardous substances, including without limitation asbestos, polychlorinated biphenyls, petroleum leakage, or agricultural chemicals, which may or may not be present on the property, or other environmental conditions, were not called to the attention of nor did the appraiser become aware of such during the appraiser’s inspection. The appraiser has no knowledge of the existence of such materials on or in the property unless otherwise stated. The appraiser, however, is not qualified to test such substances or conditions. If the presence of such substances, such as asbestos, urea formaldehyde foam insulation, or other hazardous substances or environmental conditions, may affect the value of the property, the value is predicated on the assumption that there is no such condition on or in the property or in such proximity thereto that it would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired.

16.		The Americans with Disabilities Act (“ADA”) became effective January 26, 1992. The appraiser has not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property, together with a detailed analysis of the requirements of the ADA, could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this fact could have a negative effect upon the value of the property. Since the appraiser has no direct evidence relating to this issue, he did not consider possible non-compliance with the requirements of the ADA in estimating the value of the property.

17.		Former personal property items such as kitchen and bathroom appliances are now either permanently affixed to the real estate or are implicitly part of the real estate in that tenants expect the use of such items in exchange for rent and never gain any of the rights of ownership. Furthermore, the intention of the owners is not to remove the articles which are required under the implied or express Warranty of Habitability. The accounting for the short-lived nature of such items is reflected in a reserves for replacement expense category.

EXTRAORDINARY ASSUMPTION



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Page 1


SUMMARY OF SALIENT FACTS AND CONCLUSIONS

*Date of Value*		June 1, 2011

*Date of Inspection*		March 4, 2011

*Property Name*		Cedar Rim Apartments

*Property Address*		7920 110th Avenue SE
		Newcastle, Washington 98056

*Property Location*		East side of 110th Avenue SE, in Newcastle, Washington.

*Tax Identification*		3343300800.

*Purpose of the Appraisal*		To estimate the Market Value of the Leased Fee Interest in the subject property, free and clear of financing.

*Site Size*		Irregular shaped site that contains a total of 4.37 acres

*Zoning*		R – 24 (Urban Residential)

*Improvements*		A 104-unit garden apartment complex completed in 1981 with 13 apartment buildings, hot tub, barbeque area and mature landscaping. The property is operating at stabilized occupancy and is in good physical condition.

*2011 Assessed Value*		$14,861,000

Highest and Best Use
*As If Vacant*		Residential development.
*As Improved*		Continued use of the existing improvements.

VALUATION INDICATIONS
Income Capitalization		$11,700,000
*Stabilized NOI*		$643,862
*Cap Rate*		5.5%
*Value per Unit*		$112,500
*Value per Sq Ft*		$106.53
Sales Comparison		$12,000,000
*Value per Unit*		$115,385
*Value per Sq Ft*		$109.27
Cost Approach		N/A
APPRAISED VALUE		$11,700,000
*Value per Unit*		$112,500
*Value per Sq Ft*		$106.53

EXTRAORDINARY ASSUMPTION

KTR Real Estate Advisors, LLC



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Page 2


PREMISES OF THE APPRAISAL

*Identification*		The subject property consists of the land and improvements at 7920 110th Avenue SE within Newcastle, King County, Washington. The King County Assessor identifies the property as Tax Parcel Identification Number 3343300800. The property consists of a 4.37-acre site improved with 104- unit garden apartment complex known as Cedar Rim Apartments.

*Sales History of the Subject Property*		According to public records, the current owner of the subject property is Cedar Rim Apartments LLC, who has owned the property since April 2009, when it was transferred by Consolidated Capital Institutional Properties/3 LP a related party. We are not aware of any transfers of ownership within the three-year period prior to the effective date of value. It is our understanding that the subject property is not being listed for sale and we are not aware of any contracts of sale pending as of the date this report was prepared.

*Purpose and Scope of the Appraisal*		The purpose of the appraisal is to estimate the market value of the subject property as of the date of value. It is the intent of the appraisers that the analysis, opinions and conclusions of this report be considered an unbiased, objective investigation performed by a disinterested third party with complete objectivity as to the outcome of the analysis.

		According to the Appraisal Institute’s Code of Professional Ethics and Uniform Standards of Professional Appraisal Practice, the scope of the appraisal is cited as “the extent of the process of collecting, confirming, and reporting data” included in an appraisal report. All appropriate data deemed pertinent to the solution of the appraisal problem has been collected and confirmed. In our appraisal of the subject property, we have:

		1. Inspected the subject property and its environs.
		2. Reviewed demographic and other socioeconomic trends pertaining to the city and region.
		3. Examined regional apartment market conditions, with special emphasis on the subject property’s apartment submarket.
		4. Investigated lease and sale transactions involving comparable properties in the influencing market.
		5. Reviewed the existing rent roll and discussed the leasing status with the building manager and leasing agent. In addition, we have reviewed the subject property’s recent operating history and those of competing properties.
		6. Utilized appropriate appraisal methodology to derive estimates of value.
		7. Reconciled the estimates of value into a single value conclusion.

KTR Real Estate Advisors, LLC



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Page 3


*Definition of Market Value*		The definition of Market Value used in this appraisal report is taken from the Appraisal Institute’s The Dictionary of Real Estate Appraisal, Fifth Edition, Chicago, Illinois, Appraisal Institute, 2010, which states:

		“The most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sales, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:

		1. Buyer and seller are typically motivated;
		2. Both parties are well informed or well advised, and acting in what they consider their best interests;
		3. A reasonable time is allowed for exposure in the open market;
		4. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and
		5. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.”

*Property Rights Appraised*		The interest being appraised is the Leased Fee Interest. Leased Fee Interest is defined in The Dictionary of Real Estate Appraisal, Fifth Edition, Chicago, Illinois, Appraisal Institute, 2010, as:

		An ownership interest where the possessory interest has been granted to another party by creation of a contractual landlord tenant relationship, i.e. a lease. The rights of the lessor (the leased fee owner) and the leased fee are specified by contract terms contained within the lease.

*Intended Use and Intended User*		The intended user of this report is CONCAP EQUITIES INC. It is understood that this appraisal will be utilized by the intended user as an aid in asset evaluation and financial reporting. All others reading or relying on this appraisal report are considered unintended users of this appraisal. The appraisal cannot be used for any other reason than that stated above. The appraisers are not responsible for unauthorized use of this report.

		This appraisal has been prepared in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP) as promulgated by the Appraisal Standards Board of the Appraisal Foundation as well as the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. The presentation of data and results of our analysis are presented in a Self-contained Report format as set forth under Standards Rule 2-2 of the USPAP.

KTR Real Estate Advisors, LLC



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Page 4


*Exposure Time*		According to the previously stated definition of Market Value, the property must be allowed a reasonable time to be exposed in the open market to achieve the appraised value. Exposure is defined by the Appraisal Institute, The Dictionary of Real Estate Appraisal, Fifth Edition, Chicago, Illinois, Appraisal Institute, 2010, as:

		“1. The time a property remains on the market.

		2. The estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective estimate based upon an analysis of past events assuming a competitive and open market.”

		Exposure time is always presumed to occur prior to the effective date of the appraisal. The overall concept of reasonable exposure encompasses not only adequate, sufficient and reasonable time but also adequate, sufficient and reasonable effort. Exposure time is different for various types of real estate and value ranges and under various market conditions.

		Review of transfer records suggests that there is an active investor market for good quality apartment properties; however, conventional sources of capital is somewhat limited and mortgage underwriting has remained conservative with a greater level of equity required to obtain financing in comparison to the period leading up to September 2008. These factors have impacted sales activity for most types of investment grade real estate.

		We believe that if the subject property were exposed to the market for a reasonable period of time prior to the effective date of this appraisal, which we consider to be a period of up to 12 months, the subject property would transfer at an appropriate price, that is to say, the appraised value. Support for this exposure period is provided by the PwC Real Estate Investor Survey First Quarter 2011, which indicates that marketing times for apartment properties in the national market range from none to 18 months. The average marketing time equates to 6.00 months, down from 8.06 months reported one year ago. This marketing period is supported by data in the local market.

		We acknowledge that in appraising the property to sell after the aforementioned exposure period, we must place most emphasis on the buyer’s expectations and yield requirements. The value conclusion rendered for the property through implementation of the Income Capitalization Approach has been accorded most significance as this technique most closely emulates buyer’s expectations and yield requirements. The market value estimate concluded herein assumes an exposure and marketing period of up to 12 months has occurred.

KTR Real Estate Advisors, LLC



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Page 5


REGIONAL ANALYSIS

*Overview*		The subject is located in King County which is part of the Seattle-Tacoma-Bellevue Metropolitan Statistical Area (MSA). The MSA is comprised of three counties including King, Pierce and Snohomish. The Seattle metropolitan area is located in north western portion of the state.

*Population*		According to the U.S Census Bureau King County, the MSA and State all experienced positive population growth from 2000 to 2010. These trends are expected to continue through 2015. The following table illustrates the population statistics for the County, MSA and the State from 2000 through 2015.

HISTORICAL POPULATION AND PROJECTIONS


	2000		2010		2015		% Change			% Change
	Census		Estimate		Forecast		2000-2010			2009-2015

King County		1,737,034		1,911,496		2,031,374		10.0	%		6.3	%
Seattle-Tacoma-Bellevue MSA		3,043,877		3,412,918		3,639,858		12.1	%		6.7	%
Washington		5,894,121		6,690,746		7,162,483		1.4	%		7.1	%


Source: U.S. Census Bureau


*Economic Overview*		According to the United States Bureau of Labor Statistics, the MSA’s total civilian labor force was 1,459,800 as of April 2011. The non-farm labor force as of April 2011 was 1,387,800. The unemployment rate stood at 8.3 percent as of April 2011, lower than the State as a whole and the National unemployment rate of 9.1 and 9.0 percent, respectively.

		A majority of the MSA’s work force is employed in the Trade, Transportation and Utilities, Services, and Government sectors. Total employment in the MSA has increased by 1.7 percent over the past year. The largest increase was in the Mining and Logging sector, which had an increase over 14.3 percent over the prior year. The Construction sector has been hit the hardest over the past year with a decrease of 5.5 percent. The following table illustrates the diversification of the MSA’s work force as of April 2011, the most recent information available at the time of the report.

KTR Real Estate Advisors, LLC



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Page 6

SEATTLE-TACOMA-BELLEVUE MSA
WORK FORCE BY INDUSTRY — AS OF APRIL 2011


	Number Employed		12-Month
Industry Category	(In Thousands)		Percent Change

Mining and Logging		0.8		14.3	%
Construction		60.3		-5.5	%
Manufacturing		154.3		3.3	%
Trade, Transportation and Utilities		252.5		3.1	%
Information		85.3		2.2	%
Financial Activities		76.5		0.3	%
Professional and Business Services		207.6		6.1	%
Educational and Health Services		167.8		2.1	%
Leisure and Hospitality		129.6		0.9	%
Other Services		48.7		-1.8	%
Government		204.4		-1.7	%
Total		1,387.80		1.7	%


Notes: Seasonally Adjusted

Source: Bureau of Labor Statistics; Compiled by KTR


*Transportation*		Primary access in the County is provided by Interstates 5, 90 and 405. In addition, there are numerous state roads which provide access to the area. The Port of Seattle is a port district that runs Seattle’s seaport and airport. Among its facilities are the Seattle-Tacoma International Airport in SeaTac, the Shilshole Bay Marina, the Maritime Industrial Center and Fishermen’s Terminal on Salmon Bay. In addition it operates cargo terminals and a grain elevators on Smith Cove and numerous cargo terminals on Elliott Bay, Harbor Island and the Duwamish Waterway. The Port of Seattle also controls recreational and commercial moorage facilities and two cruise ship terminals.

*Conclusions*		The outlook for the area is relatively stable. The MSA has experienced slight employment increases over the past year. The transportation network in the MSA provides good access to the surrounding areas. Given the current state of the national economy, projecting the near term outlook remains uncertain. Considering the diversity within the MSA’s workforce, the proximity to large cities and a transportation network with good access to surrounding areas, the long-term outlook for the region remains positive.

KTR Real Estate Advisors, LLC



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Page 7


NEIGHBORHOOD ANALYSIS

*Overview*		The subject property is located in Newcastle an eastern suburb of Seattle. Newcastle is bordered by Bellevue to the north, Renton to the south, Issaquah to the east and Lake Washington to the west. Newcastle was one of the region’s earliest coal mining areas and its railroad link to Seattle was the first in King County. Coal delivered by rail from Newcastle’s mines to Seattle fueled the growth of the Port of Seattle and attracted railroads to the area, most notably the Great Northern Railway. Coal mining in the area stopped in the 1960s and the area is now a suburban community with most residents working in Seattle, Bellevue or Renton.

*Population*		The population in Newcastle grew by 28.4 percent from 2000 to 2010, greater than the growth rate of King County and the State of Washington. DemographicsNow.com projects that the growth in Newcastle will continue at a slower rate through 2015. The following table illustrates the population statistics for Newcastle, King County and the State of Washington from 2000 through 2015.

HISTORICAL POPULATION AND PROJECTIONS


	2000		2010		2015		% Change			% Change
	Census		Estimate		Projection		2000-2010			2010-2015

Newcastle		7,701		9,890		10,545		28.4	%		6.6	%
King County		1,737,034		1,911,496		2,031,374		10.0	%		6.3	%
State of Washington		5,894,121		6,690,746		7,162,483		13.5	%		7.1	%


Source: DemographicsNow


*Transportation*		The subject neighborhood is well served by an extensive highway system including I- 405. Several secondary thoroughfares also traverse the immediate area and include the Coal Creek Parkway. Public transportation is provided by Sound Transit and King County Metro Transit.

*Surrounding Improvements*		Surrounding improvements consist of garden style apartment complexes, vacant land and commercial uses.

*Conclusion*		The subject neighborhood is considered to be an attractive residential location because of its excellent highway access and proximity to Seattle’s Central Business District.

KTR Real Estate Advisors, LLC



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Page 8


SITE ANALYSIS

*Location*		East side of 110^th Avenue SE, in Newcastle, Washington. The physical address of the property is 7920 110^th Avenue SE.

*Site Area*		4.37 acres, which equates to 190,300 square feet.

*Street Frontage*		The subject has frontage along the east side of 110^th Avenue SE.

*Topography*		The site has a steep upward slope from the 110^th Avenue SE frontage.

*Shape*		The parcel is irregularly shaped.

*Excess/Surplus Land*		Traffic circulation throughout the property and an adequate number of parking spaces is provided on concrete paved drives and surface lots. The building setbacks allow for landscaped buffers, similar to surrounding properties. There does not appear to be excess or surplus land.

*Utilities*		All customary municipal services and utility hookups are provided.

*Soil Information*		No adverse conditions were readily apparent.

*Flood Hazard*		According to the Federal Emergency Management Agency (FEMA), the subject property is not in a flood zone. The corresponding map number is 53033C0675F which is a non-printed panel.

*Easements and* *Encroachments*		No title report or survey showing the location of easements was provided in connection with this assignment. Thus, it is not possible to make a definitive conclusion regarding any potential impacts on value of the location of any such easements or encroachments. Visual observations of the site revealed no adverse easements or encroachments. It appears as though the site is encumbered by utility and access easements typical of a developed site. It is specifically assumed that any easements, restrictions or encroachments that might appear against the title would have no adverse impact on marketability or value.

*Environmental*		No readily observable adverse environmental site conditions were noted. No environmental reports were provided for review.

*Accessibility/Visibility*		Ingress and egress to the property is via the 110^th Avenue SE frontage. Accessibility of the site is good.

*Improvements*		A 104-unit garden apartment complex completed in 1981 with 13 apartment buildings, hot tub, barbeque area and mature landscaping. The property is operating at stabilized occupancy and is in good physical condition.

*Conclusions*		The physical attributes of the site are well suited for the existing development and use.

KTR Real Estate Advisors, LLC



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Page 10


IMPROVEMENT ANALYSIS

*Year Built/Renovated*		The facility was completed in 1981 as a garden-style apartment complex. There was a major renovation of all of units within the last three years.

*Layout & Configuration*		The complex consists of 13 four-story garden apartment buildings containing 104 apartments with a rentable area of 109,824 square feet. The buildings are sited along internal drives that are integrated with the parking lots.

*Leasable Area/Unit Mix*		The following chart summarizes the unit mix and sizes of the various floor plans at the subject property as indicated by a review of client provided rent roll data and floor plans.

UNIT MIX AND FLOOR AREAS


Type	Mix			Size		Total Area

2 Bed/1 Bath		5			1,056		5,280
2 Bed/2 Bath		99			1,056		104,544
Totals/Averages		104	*		1,056		109,824


*		Includes Office Unit

Source: Client provided rent roll data and floor plans; compiled by KTR


*Floor Plans*		As indicated, the property offers predominately two-bedroom floor plans with two bathrooms. Some units have one bathroom; however, they are all the same size. Each floor plan provides a living room off a small entry foyer and dining room off the kitchen area. Washer and dryers are provided in all of the units. In addition each unit has a fire place and private balconies.

EXTERIOR

*Structure*		The foundations consist of reinforced concrete slabs, poured on grade. Structural framing is wood stud walls with interior gypsum-clad drywall.

*Floors*		The floors are constructed of engineered wood trusses. The ceiling heights are approximately 8 to 10 feet.

*Walls*		The exterior of the buildings are vinyl siding.

*Windows*		Individual unit windows are single pane glass set in aluminum frames. Entry doors are metal set in wood frames. Sliding glass doors provide access to the balconies.

*Roof*		The buildings have pitched roofs with composition shingles.

INTERIOR FINISHES

*Walls and Ceilings*		Textured and painted drywall.

*Flooring*		Flooring consists of carpeting, wood and tile.

KTR Real Estate Advisors, LLC



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Page 11


*Kitchens*		Typical appliance package consisting of a refrigerator/freezer, full-size electric range with oven, microwave and dishwasher. Cabinets are wood and countertops are laminate.

*Bathrooms*		Shower/tub, toilet, vanity with sink and mirrored medicine cabinet. Tubs have a ceramic tile wainscoting.

*Unit Amenities*		The units have washer/dryer, fireplace, walk-in closets and balconies.

MECHANICAL SYSTEMS *HVAC*		Air and heat is provided by individual split systems with exterior condensers. The system is similar to competing properties.

*Electric Service*		Adequate electric service is provided. Each apartment has a separate panel.

*Plumbing*		Apartment-grade plumbing systems are installed. Each unit is serviced by an electric water heater.

*Fire Protection*		The subject property is not equipped with a fire sprinkler system. The apartments are fit with smoke detectors.

ANCILLARY AREAS

*Landscaping*		Landscaping is of mature vegetation. Native trees and shrubs are plentiful throughout the common areas and between buildings. Seasonal color is provided in beds along the main entrance points and near the pool and office area.

*Parking*		The internal drive incorporates the surface parking lots. There are approximately 300 parking spaces provided. The drives and parking lots are macadam paved.
*Recreational Amenities*		A hot tub, barbeque area and mature landscaping.

*FF&E* *Personal Property*		The subject property has office furnishings and equipment for the staff in the office and various chairs and tables for the barbeque area. Kitchen appliances are also part of personal property. The FF&E are similar to competitive properties.

CONDITION/MAINTENANCE

*Exterior*		Good condition. Overall maintenance appears adequate.

*Roof*		Good condition.

*Interiors*		Good condition. Overall maintenance appears adequate.

*Common Area Amenities*		Good condition. Overall maintenance appears adequate.

*Sidewalks & Paving*		Good condition. Overall maintenance appears adequate.

*Landscaping*		Good condition. Overall maintenance appears adequate.

KTR Real Estate Advisors, LLC



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Page 12


*Environmental Conditions*		No readily observable adverse conditions were noted during the site visit.

ELEMENTS OF DEPRECIATION		Based on our field inspection, we note that some elements of depreciation are present at the subject property.

*Physical Deterioration*		The overall physical condition is good with adequate maintenance levels. Physical deterioration is primarily limited to general aging and normal wear and tear. No material elements of deferred maintenance were noted during the appraiser’s inspection of the property. Carpet and mechanical equipment in the individual units are updated and/or replaced on an as-needed basis. According to Marshall Valuation Service, buildings similar to the subject property have an economic life of approximately 50 years. The actual chronological age of the property is 30 years. As a result of on-going maintenance, the effective age is estimated to be less than the actual age of the improvements. The effective age is estimated at 10 years.

*Capital Improvements*		No major capital improvements are planned in the near term.

*Functional Obsolescence*		The subject property’s design, systems and floor plans are consistent with traditional garden style apartment complexes. The property has operated at rental rates and occupancy levels that are consistent with that of other similar properties within the influencing market, attesting to its functional adequacy and market acceptance. Considering these factors, no adjustment for functional obsolescence is required.

*External Obsolescence*		External obsolescence is a loss in value resulting from conditions that are present outside the subject property and is usually incurable. No site-specific external obsolescence was noted.

*Conclusions*		The subject improvements have adequate functional utility, conform well to the general character of the neighborhood and are generally similar to competitors.

KTR Real Estate Advisors, LLC



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Page 13


ZONING ANALYSIS

*Introduction*		According to King County, the subject property is situated in an R – 24 Urban Residential District. The purpose of the urban residential zone (R) is to implement comprehensive plan goals and policies for housing quality, diversity, affordability and to efficiently use urban residential land, public services and energy. More specifically, the R – 24 District is intended to provide a mix of predominantly apartment and townhouse dwelling units, mixed-use and other development types, with a variety of densities and sizes in locations appropriate for urban densities.

		The bulk restrictions in the R – 24 – Urban Residential District are summarized in the following table.

R – 24 – URBAN RESIDENTIAL DISTRICT


RESTRICTION		SIZE

Minimum lot area		None
Minimum lot width		30 Feet
Minimum street setback		10 Feet
Minimum interior setback		5 Feet
Maximum height		60 Feet
Maximum Units Per Acre		24
Minimum Parking
Multifamily Uses (2-Bedroom Units)		1.7 spaces per unit


Source: King County Code of Ordinances; Compiled by KTR.


*Conclusions*		The subject is built to a density of 23.8 units per acre, within the maximum of 24 units per acre. According to management, there are approximately 300 parking spaces at the site, which is above the minimum requirement set forth by the zoning code. The subject property appears to represent a legal and conforming use with a legal and non-complying density.

KTR Real Estate Advisors, LLC



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Page 15


REAL ESTATE ASSESSMENTS AND TAXES

*Overview*		According to the King County tax record, the subject property is identified as Parcel Number 3343300800. The taxes are billed annually in May and are paid in November. The taxable value is multiplied by the current tax rate to calculate the taxes payable. Revaluations occur every year. The subject’s 2011 assessment is shown below.

SUBJECT PROPERTY ASSESSMENT


Source: King County Auditor’s Office


*Comparable Assessments*		Similar properties within the area were surveyed to ascertain the reasonableness of the subject’s current assessment. The subject’s current assessment is $142,894 per unit. The comparables range between $122,792 and $173,896 per unit. The subject’s assessment is within the comparable range, based on discussions with the County Assessor, the assessment appears reasonable and has been processed.

TAX COMPARABLES


			Taxable		Year		Assessed		Assessment
Property Name	Tax ID		Value		Built		Units		Per Unit

Cedar Rim (Subject Property)		3343300800	$	14,861,000		1981		104	$	142,894
Marina Landing		3344500315	$	23,000,000		1986		186	$	123,656
Bella Vista		2296500200	$	31,649,000		2000		182	$	173,896
Newport Crossing		2824059026	$	23,576,000		1990		192	$	122,792


Source: King County Assessor, compiled by KTR


*Mill Rate*		Mill rates have remained relatively stable over the past several years. The 2011 total mill rate applicable for all taxing authorities with jurisdiction over the subject property equates to $11.57147 per $1,000 of assessed value.

*Real Estate Tax Projection*		Future increases in reassessments are expected to reflect annual increases near the anticipated inflation rate during the same period. Tax rates are expected to remain relatively stable. The total amount is anticipated to increase at a rate near the long-term average inflation rate

*Tax Calculation*		The subject’s real estate tax liability is calculated utilizing the current assessment and the current tax rate, which equates to $171,963.61. It is noted that there are additional taxes for Surface Water, Noxious Weeds and Conservation which have been billed and processed at approximately $8,100 for the 2011 tax year. Combining the taxes payable and additional taxes equates to $180,064, which has been processed in the valuation.

KTR Real Estate Advisors, LLC



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Page 16


APARTMENT MARKET ANALYSIS

*Area Housing Market*		According to a market study performed by the O’Connor Consulting Group, LLC (OCGP), the subject is located in the South End submarket. The immediate area is comprised of garden style apartment complexes, vacant land and commercial uses. OCGP indicates that as of the August 2010, the most recent data available, the vacancy rate in the submarket was 5.5 percent, lower than the previous year vacancy rate of 7.5 percent. The comparables have one-, two- and three-bedroom units. As the subject consists solely of two-bedroom units, only the two-bedroom units from the comparables have been analyzed.

*Subject Property*		The subject units have average sizes and finishes consistent with that of the market. According to the April 25, 2011 rent roll, the subject’s current contract rents average $1,275.48 per month. The two-bedroom/one bathroom apartments range between $1,114.00 and $1,352.00 per month and the two-bedroom/two bathroom units range between $980.20 and $1,667.00 per month.

		Per the rent roll, there were two units reported to be vacant; however, these units are both pre-leased. The asking rents for the two-bedroom/one bathroom apartments is $1,159 per month and the two-bedroom/two bathroom units range between $1,109 and $1,439 per month.

*Competitive Set*		In order to determine the reasonableness of the subject’s asking rents, a survey of comparable apartment complexes in the market was conducted. The subject competes with a number of properties in the area. All of the properties are in close proximity of the subject and define the range of property, unit types and rental rates available in the market. The information regarding the rent comparables was obtained through physical inspections and direct interviews of rental agents and property managers. The following map illustrates the location of the comparable properties in relation to the subject. Data sheets summarizing details of the comparable properties follow the map.

KTR Real Estate Advisors, LLC



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Page 21


*ANALYSIS*		The comparable rental properties are all in the vicinity of the subject property. The comparable properties were constructed between 1986 and 2000. The units and complex amenities are similar to the subject. Based on the recent renovation of the subject property, the subject property’s earlier date of construction is not a significant marketing deficiency. The rental rates illustrated by the comparable properties provide a good indication as to the appropriate market rent of the subject property.

*Two-Bedroom Units*		The subject property offers two variations of two-bedroom unit floor plans, both of which are 1,056 square feet in size with asking rents ranging between $1,159 and $1,269 per month or $1.10 to $1.20 per square foot. The comparable two-bedroom units range in size from 884 to 1,482 square feet and have monthly asking rents ranging from $1,030 to $1,795 per month or $0.94 to $1.45 per square foot.

TWO-BEDROOM FLOOR PLANS


	Unit Size	Rent/Month	Rent/SF	Comment

Subject	1,056	$1,159	$1.10	Subject
	1,056	$1,269	$1.20	Subject
Marina Landing	889	$1,135-$1,285	$1.28-$1.45	Superior
	974	$1,205-$1,355	$1.24-$1.39
Newport Crossing	884-928	$1,030-$1,150	$1.11-$1.24	Similar
	1,191-1,385	$1,170-$1,295	$0.94-$0.98
Bella Vista	1,151-1,482	$1,395-$1,795	$0.94-$1.21	Superior

Subject Range	1,056	$1,159-$1,269	$1.10-$1.20
Comparable Range	884-1,482	$1,030-$1,795	$0.94-$1.45


		The subject’s asking rents are bracketed by the competing properties. After considering variances for unit size and amenity package, the subject’s asking rents for the two-bedroom/one bathroom floor plans appear to be slightly below market rent and the two-bedroom/two bathroom floor plans appear to be slightly above market. Newport Crossing is considered most similar and the subject would likely achieve monthly rents similar to this range. Accordingly, monthly rents of $1,200 have been processed for the two-bedroom/one bathroom units and $1,250 per month has been processed for the two-bedroom/two bathroom units. Based on such, the subject’s gross potential rent is detailed as follows:

SUMMARY OF ECONOMIC RENT POTENTIAL


Type	Mix		Size		Total Area		Rent		Rent/SF		Total Rent
2 Bed/1 Bath		5		1,056		5,280	$	1,200	$	1.14	$	6,000
2 Bed/2 Bath		99		1,056		104,544	$	1,250	$	1.18	$	123,750

Totals/Averages		104		1,056		109,824	$	1,248	$	1.18	$	129,750

KTR Real Estate Advisors, LLC



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Page 22

HIGHEST AND BEST USE


*Introduction*		Highest and Best Use is defined by the Appraisal Institute in The Dictionary of Real Estate Appraisal, Fifth Edition, Chicago, Illinois, Appraisal Institute, 2010, which states:

		That reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility and maximum productivity.

		There are typically two Highest and Best Use scenarios: the Highest and Best Use of the property as vacant and the Highest and Best Use of the site as if improved.

*HIGHEST AND BEST USE AS VACANT*

*Definition*		Highest and Best Use As Vacant is defined as “among all reasonable, alternative uses, the use that yields the highest present land value, after payments are made for labor, capital, and coordination. The use of a property based on the assumption that the parcel of land is vacant or can be made vacant by demolishing any improvements.”

		The site is zoned within the R-24 Urban Residential Zoning District that allows for a variety of residential uses. The maximum value of a property is typically realized when a reasonable degree of homogeneity is present. Thus, conformity in use is usually a highly desirable aspect of real property, since it creates and/or maintains value. The immediate area is primarily developed with garden style apartment complexes, vacant land and commercial uses. Based on the principal of conformity and the subject’s zoning, the highest and best use of the property, if vacant, is residential development.

*HIGHEST AND BEST USE AS IMPROVED*

*Definition*		Highest and Best Use As Improved is defined as “the use that should be made of a property as it exists. An existing property should be renovated or retained as is so long as it continues to contribute to the total market value of the property, or until the return from a new improvement would more than offset the cost of demolishing the existing building and constructing a new one".

		The subject represents a legal, conforming improvement relative to current zoning restrictions. No redevelopment of the site would provide a greater return to the land. Based on the fact that the potential income associated with the existing improvements provides a fair return to the land with residual income to the improvements, the highest and best use of the subject, as improved, is its current use.

KTR Real Estate Advisors, LLC



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Page 23

VALUATION PROCESS


*Introduction*		There are three traditional approaches that can be employed in establishing the market value of the subject property. In practice, an approach to value is included or omitted based on the property type and the quality and quantity of information available in the marketplace. These approaches and their applicability to the valuation of the subject are summarized as follows.

*Income Approach*		The Income Capitalization Approach is based on the premise that value is derived by converting anticipated benefits into property value. Anticipated benefits include the present value of the net income and the present value of the net proceeds resulting from the re-sale of the property.

		There are two methods of accomplishing this: (1) direct capitalization of a single year’s income by an overall capitalization rate and; (2) the discounted cash flow in which the annual cash flows and reversionary value are discounted to a present value for the remainder of the property’s productive life or over a reasonable holding (ownership) period.

		The subject property has an adequate operations history to determine the income-producing capabilities over the near future. In addition, performance levels of competitive properties serve as an adequate check as to the reasonableness of the subject property’s actual performance. As such, the income capitalization approach is utilized in this appraisal.

*Sales Comparison*		The sales comparison approach is an estimate of value based upon a process of comparing recent sales of similar properties in the surrounding or competing areas to the subject property. Inherent in and central to this approach is the principle of substitution. This comparative process involves judgment as to the similarity of the subject property and the comparable sales with respect to many value factors such as location, contract rent levels, quality of construction, reputation and prestige, age and condition and the interest transferred, among others. The value estimated through this approach represents the probable price at which the subject property would be sold by a willing seller to a willing and knowledgeable buyer as of the date of value.

		The reliability of this technique is dependent upon the availability of comparable sales data, the verification of the sales data, the degree of comparability and extent of adjustment necessary for differences and the absence of atypical conditions affecting the individual sales prices. Research revealed adequate sales activity to form a reasonable estimation of value via this approach.

KTR Real Estate Advisors, LLC



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Page 24


*The Cost Approach*		The application of the cost approach is based on the principle of substitution. This principle may be stated as follows: no one is justified in paying more for a property than the cost to develop a substitute property of equivalent desirability and utility. In the case of a new building, no deficiencies in the building should exist. The Cost Approach is typically only a reliable indicator of value for (a) new properties; (b) special use properties; and (c) where the cost of reproducing the improvements is easily and accurately quantified and there is no external obsolescence. In all instances, the issue of an appropriate entrepreneurial profit — the reward for undertaking the risk of construction — remains a highly subjective factor.

		Investors are generally not buying, selling, or lending with reliance placed on the methodology of the Cost Approach to establish value. Furthermore, based on the age of the improvements, the Cost Approach would lend little insight into the market value of the property. Accordingly, the Cost Approach has been excluded from the scope of this appraisal.

*Reconciliation*		The final step in the appraisal process is to reconcile the various value indications into a single final estimate. Each approach is reviewed in order to determine its appropriateness relative to the subject. The accuracy of the data available and the quantity of evidence are weighted in each approach. The resulting estimate represents the subject property’s market value as defined in the appraisal.

KTR Real Estate Advisors, LLC



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Page 25

INCOME CAPITALIZATION APPROACH


*Introduction*		The Income Capitalization Approach is based on the theory that value is the present worth of future benefits. The future benefits of ownership consist of the present worth of the net income which will accrue to the owner of the property, plus the present value of the net proceeds resulting from the eventual disposition of the property. The two most commonly used techniques of converting net income into value in the Income Capitalization Approach are Direct Capitalization and the Discounted Cash Flow Analysis.

		The Direct Capitalization method is considered most relevant and has been processed. Direct Capitalization is a method utilized to convert a single year’s estimate of net income (before debt service) into an indication of value by the use of an Overall Capitalization Rate.

*Revenue Analysis*
*Potential Gross Income*		The potential gross income from the apartment unit rent has been calculated to be $129,750 per month or $1,557,000 for the appraised year based on the analysis and conclusions derived in the Apartment Market Analysis section.

*Loss to Lease*		Loss to lease considers a loss in income due to leases in effect, whereby effective rental rates are lower than asking, or market, rental rates.

		The operating statements under review indicate a historical loss to lease was negative 4.5 percent of gross potential rent in 2008, positive 0.2 percent in 2009 and positive 0.8 percent in 2010. In 2009 and 2010, the los to lease suggests that contractual income was above market. Loss to lease was not budgeted for 2011. The submitted April 25, 2011 rent roll indicated a loss to lease of approximately positive 1.0 percent. Considerate of the historical data, a loss to lease of negative 3.0 percent of gross rent potential has been processed.

*Concessions*		Concessions within the subject’s influencing area are common. Each of the properties surveyed as rent comparables offer some form of rent concession. The concessions consist of reduced rent or free rent over a portion of the lease term.

		According to operating statements under review, concessions were 5.6 percent in 2008, 9.0 percent in 2009 and 3.3 percent in 2010. The fluctuation between 2008 and 2009 is attributed to the completion of the renovation and added incentives to prospective tenants in order to lease the property. As occupancy rates at the subject property stabilized in 2010, concessions decreased. Considerate of such, concessions of 4.0 percent have been processed in this analysis.

KTR Real Estate Advisors, LLC



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Page 26


*Vacancy/Credit Loss*		The subject was reportedly 74.6 percent occupied in 2008, 93.4 percent occupied in 2009, 92.0 percent occupied in 2010 and is budgeted at 96.0 percent in 2011. As of the April 25, 2011 rent roll, the property was 100.0 percent leased. The high vacancy in 2008 is attributed to lease up following the renovation of the subject. The 2010 and current occupancy levels are consistent with the range of occupancy levels reported by competitors in the immediate vicinity. Occupancy levels for the competing properties in the influencing market area are outlined as follows:

OVERVIEW OF COMPETITIVE OCCUPANCY LEVELS


Name	Year Built		Total Units		Occupancy

Marina Landing		1986		186		96.0	%
Newport Crossing		1990		192		97.0	%

Bella Vista Lake Washington		2000		182		98.0	%


		Since the completion of the renovation, the subject occupancy has increased dramatically and is currently operating at stabilized occupancy. The subject should reasonably maintain this level into the foreseeable future. In addition to vacancy, the 2011 budget include a 0.5 percent allowance for bad debt. A stabilized vacancy and credit loss of 5.0 percent has been utilized in this appraisal.

*Administrative Units*		There is one unit being utilized as the office and a deduction from potential gross income was applied in 2008, 2009 and 2010. This line item was not budgeted in 2011; however, the office is expected to be maintained at the property. Accordingly, market rent has been applied to this unit and deducted from the gross potential income equating to $15,000 for the appraised fiscal year.

*Other Income*		Typically, apartment projects receive additional revenue from sources such as utility reimbursements, vending, application fees, late fees, bad check charges and deposit forfeitures. Other income receipts at the subject property were $1,046 per unit in 2008, $1,107 per unit in 2009, $1,323 per unit in 2010 and are budgeted at $1,330 per unit in 2011. It is noted that the majority of the other income is from water and sewer reimbursements. As other income is based largely on occupancy, the budget appears reasonable and has been processed at $1,330 per unit.

*OPERATING EXPENSES*		In order to estimate expenses for the subject property, we have analyzed the subject’s operating expenses for 2008, 2009 and 2010 as well as the budget for 2011. These historical and budgeted amounts have been compared to the median dollar amount per unit reported by IREM for garden apartments in the Seattle Metropolitan Area. The subject’s operating statements under review have been reconstructed and summarized in the table on the following page.

KTR Real Estate Advisors, LLC



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Page 27

RECONSTRUCTED OPERATING STATEMENTS


	104									104									104									104
	2008									2009									2010									2011 Budget									2010 IREM
No. of Units							Percent									Percent									Percent									Percent			Median $/Unit
Year	Actual			Per Unit			% of GRP			Actual			Per Unit			% of GRP			Actual			Per Unit			% of GRP			Budget			Per Unit			% of GRP			Seattle MSA

INCOME
Gross Rent Potential (Market Rent)	$	1,907,272		$	18,339			100.0	%	$	1,831,982		$	17,615			100.0	%	$	1,655,852		$	15,922			100.0	%	$	1,552,908		$	14,932			100.0	%
Loss to Lease	$	(85,392	)	$	(821	)		-4.5	%	$	4,304		$	41			0.2	%	$	12,927		$	124			0.8	%	$	0		$	0			0.0	%
Concessions	$	(106,631	)	$	(1,025	)		-5.6	%	$	(165,787	)	$	(1,594	)		-9.0	%	$	(54,552	)	$	(525	)		-3.3	%	$	0		$	0			0.0	%
Vacancy/Credit/Non-revenue Units	$	(484,255	)	$	(4,656	)		-25.4	%	$	(120,614	)	$	(1,160	)		-6.6	%	$	(131,927	)	$	(1,269	)		-8.0	%	$	(61,770	)	$	(594	)		-4.0	%

Net Rental Income (NRI)	$	1,230,994		$	11,836			64.5	%	$	1,549,885		$	14,903			84.6	%	$	1,482,300		$	14,253			89.5	%	$	1,491,138		$	14,338			96.0	%
Administrative Units	$	(34,597	)	$	(333	)		-1.8	%	$	(35,596	)	$	(342	)		-1.9	%	$	(18,456	)	$	(177	)		-1.1	%	$	0		$	0			0.0	%
Other Income	$	108,753		$	1,046			5.7	%	$	115,096		$	1,107			6.3	%	$	137,565		$	1,323			8.3	%	$	138,348		$	1,330			8.9	%

Total Property Income (EGI)	$	1,305,150		$	12,550			68.4	%	$	1,629,385		$	15,667			88.9	%	$	1,601,409		$	15,398			96.7	%	$	1,629,486		$	15,668			104.9	%

EXPENSES							% of EGI									% of EGI									% of EGI									% of EGI

Utilities	$	145,688		$	1,401			11.2	%	$	123,089		$	1,184			7.6	%	$	130,976		$	1,259			8.2	%	$	132,609		$	1,275			8.1	%	$	814
Maintenance & Repairs	$	64,967		$	625			5.0	%	$	85,913		$	826			5.3	%	$	80,200		$	771			5.0	%	$	86,658		$	833			5.3	%	$	1,125
Payroll	$	166,559		$	1,602			12.8	%	$	258,619		$	2,487			15.9	%	$	233,811		$	2,248			14.6	%	$	214,151		$	2,059			13.1	%	$	941
Marketing	$	130,045		$	1,250			10.0	%	$	93,124		$	895			5.7	%	$	42,133		$	405			2.6	%	$	33,362		$	321			2.0	%	$	0
Administration/Office	$	64,449		$	620			4.9	%	$	57,916		$	557			3.6	%	$	49,794		$	479			3.1	%	$	66,007		$	635			4.1	%	$	954
Management Fee	$	63,166		$	607			4.8	%	$	79,332		$	763			4.9	%	$	77,895		$	749			4.9	%	$	81,474		$	783			5.0	%	$	394
Insurance	$	36,927		$	355			2.8	%	$	28,531		$	274			1.7	%	$	30,871		$	297			1.9	%	$	31,003		$	298			1.9	%	$	178
Real Estate Taxes	$	113,635		$	1,093			8.7	%	$	179,728		$	1,728			11.0	%	$	209,668		$	2,016			13.1	%	$	177,454		$	1,706			10.9	%	$	1,047
Reserves	$	0		$	0			0.0	%	$	0		$	0			0.0	%	$	0		$	0			0.0	%	$	0		$	0			0.0	%	$	0

TOTAL EXPENSES	$	785,436		$	7,552			60.2	%	$	906,252		$	8,714			55.6	%	$	855,348		$	8,225			53.4	%	$	822,718		$	7,911			50.5	%	$	5,453

NET OPERATING INCOME	$	519,714		$	4,997			39.8	%	$	723,133		$	6,953			44.4	%	$	746,061		$	7,174			46.6	%	$	806,768		$	7,757			49.5	%


Source: Client Submitted Information; compiled by KTR

KTR Real Estate Advisors, LLC



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Page 28


*Overview*		Due to the lease up subsequent to the renovations at the subject property, the expenses have fluctuated during the past couple of years. In general, 2010 and 2011 budgeted expenses are consistent with market data and reflect stabilized operations. No major changes in operations are expected or appear to be required. Expenses are expected to grow at the average annual inflation rate. Each of the expense items is discussed separately below.

*Utilities*		This expense line item includes charges for common area and individual unit gas, electricity, water/sewer and trash collection. Utility charges are offset by applicable tenant reimbursements. At the subject property, tenants reimburse the landlord for water/sewer and trash pick-up.

		Utility expenses fluctuate with occupancy, weather and changes in supply costs. The utility expenses at the subject property were $1,401 per unit in 2008, $1,184 per unit in 2009, $1,259 per unit in 2010 and are budgeted at $1,275 per unit in 2011. The IREM survey indicated that the median for garden complexes in the area is $814 per unit, below the historical and budgeted amounts. Based on the historical expenses, the budgeted expense appears reasonable and has been used as a basis for projecting utilities expenses of $1,275 per unit or $132,600.

*Repairs & Maintenance*		This expense line item includes charges for general maintenance and repairs, alarm monitoring and protection services, landscaping and make-ready/turnover. The property appears adequately maintained with no noticeable items of deferred maintenance observed during the walk-thru.

		The repairs and maintenance expense at the subject property were $625 per unit in 2008, $826 per unit in 2009, $771 per unit in 2010 and are budgeted at $833 per unit in 2011. The IREM survey indicated that the median for garden complexes in the area is $1,125 per unit, above the historical and budgeted amounts. As repairs and maintenance vary from property to property and considering the extent of renovations recently completed, the budget appears reasonable based on the historical expenses. Accordingly, a repairs and maintenance expense of $86,840, rounded, or $835 per unit has been processed. A separate Reserves category has been processed in this analysis.

*Payroll*		This expense includes payroll and benefits for the property manager, leasing agent(s), housekeeping and maintenance personnel. The payroll expense were $1,602 per unit in 2008, $2,487 per unit in 2009, $2,248 per unit in 2010 and are budgeted at $2,059 per unit in 2011. The IREM survey indicated that the median for garden complexes in the area is $941 per unit, below the historical and budgeted amounts. Based on the subject’s historical expense data, the budgeted payroll expense, while somewhat above average for the area, has been processed at $2,100 per unit or $218,400.

*Marketing*		This expense includes advertising, the cost of resident and locator referrals, internal leasing commissions, brochures, newsletters and resident activities. The historical marketing charges at the subject property were $1,250 per unit in 2008, $895 per unit in 2009, $405 per unit

KTR Real Estate Advisors, LLC



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Page 29


		in 2010 and are budgeted at $321 per unit in 2011. The IREM survey did not report a marketing expense. The large decrease between 2008 and 2010 is attributed to the completion of the renovation and extra marketing efforts needed to bolster occupancy. Based on the historical data and the subject’s current occupancy, the budget appears reasonable and has been rounded to $325 per unit or $33,800 annually.

*Administration/Office*		This category includes administrative charges and costs associated with the running of the management/leasing office including telephone service, office supplies equipment rental, computers, etc. The administrative expenses at the subject property were $620 per unit in 2008, $557 per unit in 2009, $479 per unit in 2010 and are budgeted at $635 per unit in 2011. The IREM survey indicated that the median for garden complexes in the area is $954 per unit, above the historical and budgeted amounts, however, some of this expense may be considered part of the payroll expense. Based on the historical and budgeted data, an administrative expense of $635 per unit or $66,040 is processed.

*Management Fee*		In the local market management services are typically a function of the revenues produced by the property, usually between 3.0 and 5.0 percent of collections. Based on historical operating statements under review, the subject property was managed for a fee that is equivalent to approximately 5.0 percent of collected income at the high end of the market range. Management fees of 5.0 percent of the effective gross income has been processed in this analysis.

*Insurance*		Insurance includes fire, liability, theft, and boiler, exclusive of the premiums paid to employee benefit plans. The historical insurance expenses at the subject property were $355 per unit in 2008, $274 per unit in 2009, $297 per unit in 2010 and are budgeted at $298 per unit in 2011. The IREM survey indicated that the median for garden complexes in the area is $178 per unit, below the historical and budgeted amounts. Based on the historical data, the budgeted insurance expense has been rounded to $300 per unit or $31,200 annually.

*Real Estate Taxes*		Real estate taxes are processed as discussed within the Real Estate Assessment and Tax Analysis section of this appraisal. The real estate tax projection is $180,064.

*Reserves*		Prudent management budgets a certain amount each year in a sinking fund to replace short-lived items, including kitchen appliances and cabinets, bathroom fixtures and tiling, flooring repairs, HVAC replacement and common elements such as the roof, exterior wood and parking areas. Reserves for replacement, while typically not found in submitted operating statements, are necessary in estimating a realistic operating budget so as to maintain the habitability of the apartments.

		Reserves for replacement for a property of this vintage typically range from $200 to $300 per unit. In order to remain competitive, a reserve of $250 per unit is forecast. This amounts to $26,000.

KTR Real Estate Advisors, LLC



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Page 30


*Total Expenses*		On a stabilized basis, the subject’s projected expenses including reserves are projected at $849,618, or $8,169 per unit. The indicated operating expense ratio is 56.9 percent when including reserves and 55.2 percent without reserves. The IREM survey indicated total operating expenses below the projected amounts; however, based on the historical data, these expenses are considered reasonable and have been processed.

*VALUATION PRO FORMA*		The following valuation pro forma summarizes the stabilized income and expenses described above for the appraised fiscal year.

STABILIZED PRO FORMA


Appraised Fiscal Year-ending		5/31/2012


	Total			Per Unit			Percent
INCOME							% of GPI

Gross Rent Potential (Market Rent)	$	1,557,000		$	14,971			100.0	%
Loss to Lease	$	(46,710	)	$	(449	)		-3.0	%
Concessions	$	(62,280	)	$	(599	)		-4.0	%
Vacancy/Credit/Non-revenue Units	$	(77,850	)	$	(749	)		-5.0	%

Net Rental Income (NRI)	$	1,370,160		$	13,175			88.0	%
Administrative Units	$	(15,000	)	$	(144	)		0.0	%
Other Income	$	138,320		$	1,330			8.9	%

Total Property Income (EGI)	$	1,493,480		$	14,360			95.9	%

EXPENSES							% of EGI

Utilities	$	132,600		$	1,275			8.9	%
Maintenance & Repairs	$	86,840		$	835			5.8	%
Payroll	$	218,400		$	2,100			14.6	%
Marketing	$	33,800		$	325			2.3	%
Administration/Office	$	66,040		$	635			4.4	%
Management Fee	$	74,674		$	718			5.0	%
Insurance	$	31,200		$	300			3.0	%
Real Estate Taxes	$	180,064		$	1,731			12.1	%
Reserves	$	26,000		$	250			1.7	%

TOTAL EXPENSES	$	849,618		$	8,169			56.9	%

NET OPERATING INCOME	$	643,862		$	6,191			43.1	%


*Derivation Of Overall Capitalization Rate*		This appraisal will consider the following techniques; (a) derivation from comparable sales and (b) investor surveys.

*Derivation from Sales*		The following table summarizes 11 sales of garden apartment complexes in the Seattle market that closed between June 2010 and May 2011. The overall capitalization rates range from 4.6 to 6.8 percent. The low end of the range is a June 2010 sale of 26 unit property in Bellevue, this sale has an additional 25 units that can be constructed. This data is directly supportive of the range indicated by the PwC Investor Survey for apartments in the Pacific Region.

KTR Real Estate Advisors, LLC



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Page 31

SEATTLE AREA CAPITALIZATION RATES


Property Name	Date of Sale		Year Built		Number of Units		Overall Rate

Patagonia Village		5/13/2011		1989		42		5.0	%
Beardslee Cove Apartments		4/29/2011		1986		90		5.6	%
Creekside Apartments		3/31/2011		1967		63		5.3	%
Sunset Vista Apartments		1/31/2011		1967		124		5.5	%
Sound Crest Apartments		12/30/2010		1979		24		5.2	%
The Aspens at Ridgeview		12/21/2010		2010		168		6.0	%
Pyramid Pointe		12/17/2010		1966		104		6.3	%
Fairway Lanai		10/29/2010		1968		43		5.5	%
Royal Arms Villa		9/30/2010		1968		23		6.5	%
Springfield		8/13/2010		1986		64		6.8	%
Willowbrook Apartments		6/30/2010		1958		26		4.6	%


		The capitalization rates produced by these sales are a reliable indication as to an appropriate rate for the subject property. The surveyed rates in the influencing market range from 4.6 to 6.8 percent. The four most recent sales illustrate overall rates of 5.0 to 5.6 percent. The most similar size and recent sales illustrate OARs of 5.5 to 5.6 percent. The subject property would likely trade within this range.

*Investor Surveys*		According to the PwC Real Estate Investor Survey, First Quarter 2011 rates for apartments reported by survey participants active in the market presently range as shown.

PACIFIC REGION APARTMENT MARKET SURVEY


Overall Capitalization Rate	4.00% - 7.50%	Range
	5.85%	Average
Annual Rent Growth Rate	0.00% - 5.00%	Range
	1.92%	Average
Annual Expense Growth Rate	2.00% - 3.00%	Range
	2.71%	Average


Source: PwC Real Estate Investor Survey, First Quarter 2011


		As indicated below, overall rates in the National Apartment Market began to increase in the Third Quarter 2008 and continued this trend through the Fourth Quarter of 2009. However, during 2010 and the First Quarter of 2011, average overall rates have decreased by an average of 34.8 basis points per quarter. This data seems to support the overall perception that multi-family housing has passed its nadir and is attracting significant investor interest resulting in appreciation over 2009 levels.

KTR Real Estate Advisors, LLC



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Page 32

OVERALL CAPITALIZATION RATE TRENDS


Quarter	Average			Basis Point Change
1Q11		6.29	%		-22
4Q10		6.51	%		-61
3Q10		7.12	%		-56
2Q10		7.68	%		-17
1Q10		7.85	%		-18
4Q09		8.03	%		19
3Q09		7.84	%		35
2Q09		7.49	%		61
1Q09		6.88	%		75
4Q08		6.13	%		27
3Q08		5.86	%		11
2Q08		5.75	%		-4
1Q08		5.79	%		4
4Q07		5.75	%		-1
3Q07		5.76	%		-4
2Q07		5.80	%		-9
1Q07		5.89	%		-8


Source: PwC Real Estate Investor Survey


*Conclusion of OAR*		The subject is a good quality apartment complex situated in an established residential neighborhood with good access. The property is proximate to employment centers, shopping and neighborhood support facilities. The subject has unit sizes that reflect market parameters. The amenity package is considered below average when compared to properties in the competitive market. Subsequent to completion of renovations in 2008, the subject property has leased up in difficult economic times and has achieved a stabilized occupancy of 100.0 percent based on the submitted rent roll.

		An OAR ranging of 4.6 to 6.8 percent was indicated from comparable sales with the most similar properties suggesting an overall rate between 5.0 and 5.6 percent. The PwC survey indicates an average rate for the national apartment market of 6.29 percent and an average rate for the pacific region apartment market of 5.85 percent. The most recent PwC survey data is from the First Quarter 2011. The date of value is nearly one full quarter removed from this survey. Given the significant declines in return requirements documented in the survey over the last four quarters, further rate reductions would be expected. The subject property is a better than average property and should trade at an overall rate below the survey averages. In consideration of the preceding data, with primary emphasis placed on the rates extracted from sales data, a rate of 5.5 percent has been processed.

*VALUE BY DIRECT CAPITALIZATION*

*Stabilized Cash Flow*		The stabilized cash flow is based on the previous income and expense discussion.

KTR Real Estate Advisors, LLC



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Page 34

SALES COMPARISON APPROACH


*VALUATION METHODOLOGY*		The basic steps in processing the sales comparison approach are outlined as follows:

	1.		Research the market for recent sales transactions, listings, and offers to purchase or sell of properties similar to the subject property.

	2.		Select a relevant unit of comparison and develop a comparative analysis.

	3.		Compare comparable sale properties with the subject property using the elements of comparison and adjust the price of each comparable to the subject property.

	4.		Reconcile the various value indications produced by the analysis of the comparables.


*REGIONAL SALES MARKET*		The local market has been active in terms of investment sales of similar properties. Adequate sales exist to formulate a defensible value for the subject property via sales comparison.

*PRESENTATION OF COMPARABLE SALES*		To estimate the property value by the sales comparison approach, comparable sales from the influencing market that are most similar to the subject property in terms of age, size, tenant profile and location have been analyzed. The sales are compared on a price-per-unit basis, as this is a common method of comparison for such properties.

		The comparable sales summarized in the table below and plotted on the following map, range in price from $91,992 to $169,889 per unit. While these unit prices implicitly contain both the physical and economic factors affecting real estate, these statistics do not explicitly convey many of the details surrounding a specific property. Thus, this single index to the valuation of the subject property has some limitations.

KTR Real Estate Advisors, LLC



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Page 36


ANALYSIS OF SALES		The comparables are examined by considering the following adjustment factors.

*Ownership Interest*		No adjustments are necessary, since all of the sales reflect a 100 percent transfer of ownership interest.

*Financing Terms*		The comparable sales were either all cash transactions or were financed by primary lenders at market-oriented rates. Considerate of such, no adjustments for any unusual or atypical financing is required.

*Conditions of Sale*		Adjustments for conditions of sale usually reflect the motivations of the buyer and the seller. We are not aware of any atypical circumstances regarding any of the comparable sales. Personal property is included as all facilities have similar unit appliance requirements and miscellaneous office and common area FF&E.

*Expenditures Made Immediately*
*After Sale*		Any required major capital costs incurred by the buyer immediately after the sale is appropriately added to the purchase price. None of the sales required any specific sale price adjustment other than what is included in general comparisons based on condition.

*Market Conditions*		Comparable sales that occurred under different market conditions than those applicable to the subject property as of the effective date of appraisal require adjustment for any differences that affect their values. The comparable sales occurred between August 2010 and March 2011. Although overall rates continue to drop, these rate declines have been offset somewhat by rental rate reductions and expense inflation. Accordingly, only moderate appreciation is noted. As all of the sales occurred in the second half or 2010 or the First Quarter of 2011, no adjustments for market conditions have been processed.

*Location*		An adjustment for location is appropriate when the location characteristics of a comparable property are different from those of the subject. Adjustments have been made on an individual basis.

*Physical Characteristics*		Physical differences include differences in building size, quality of construction, building materials, age, condition, functional utility and appearance. Typically significantly larger complexes trade for less on a per unit basis. Adjustments to the comparables have been applied on an individual basis.

*Average Unit Size*		The unit of comparison is processed herein is price per unit. The subject has an average unit size of 1,056 square feet. Properties with larger average unit sizes tend to trade at higher prices, all other factors being equal. Conversely, properties with smaller average unit sizes tend to trade at a lower price per unit. The average unit size of each comparable property is compared to the subject and applicable adjustments are applied when warranted.

KTR Real Estate Advisors, LLC



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Page 38

Comparable Sale No. 1


Property Name:		Creekside Apartments
Location:		220 Newport Way SW
Neighborhood:		Issaquah, WA
Parcel ID:		3324069468
Date of Sale:		March 31, 2011
Grantor:		Creekside Alliance Investments LLC
Grantee:		Mitsumaru Estate Company LTD
Consideration:		$7,206,100
Number of Units:		63
Size (Sq. Ft.):		61,460 square feet
Occupancy:		97.0%
Price per Unit:		$114,383 per unit
Price per Square Foot:		$117.25 per square foot
OAR:		5.3%


Analysis:		No adjustment for market conditions has been processed. The comparable is located in Issaquah, which is considered a similar location to that of the subject and accordingly no adjustment has been applied for location. Age, condition and quality are considered inferior to the subject, requiring a slight upward adjustment. The number of units at this comparable is considered similar and no complex size adjustment has been processed. This comparable’s average unit size is 976 square feet which is considered similar to the subject’s average unit size of 1,056 square feet and therefore no adjustment has been applied for average unit size. This complex has a pool; therefore, amenities at the comparable are considered superior and a slight downward adjustment has been applied. The average rent for this comparable is $912 per unit per month. The subject’s average rent is $1,248, superior to the comparable and a moderate upward adjustment has been processed for economics. Overall, a moderate upward adjustment to the market adjusted unit price is warranted.

KTR Real Estate Advisors, LLC



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Page 39

Comparable Sale No. 2


Property Name:		The Aspens at Ridgeview
Location:		20453 Orillia Road
Neighborhood:		Kent, WA
Parcel ID:		0322049103, 0322049053 & 1022049044
Date of Sale:		December 21, 2010
Grantor:		Ridgeview Apartments LLC
Grantee:		Aspens Ridgeview LLC
Consideration:		$28,541,400
Number of Units:		168
Size (Sq. Ft.):		161,610 square feet
Occupancy:		95.0%
Price per Unit:		$169,889 per unit
Price per Square Foot:		$176.61 per square foot
OAR:		6.0%



Analysis:		No adjustment for market conditions has been processed. The comparable is located in Kent, which is considered an inferior location to that of the subject and accordingly a slight upward adjustment has been applied for location. Age, condition and quality are considered superior as the comparable was recently completed requiring a significant downward adjustment. The number of units at this comparable is considered similar and no complex size adjustment has been processed. This comparable’s average unit size is 962 square feet which is considered similar to the subject’s average unit size of 1,056 square feet and therefore no adjustment has been applied for average unit size. The primary amenity at the comparable is garages; therefore, amenities at the comparable are considered similar and no adjustment has been applied. The average rent for this comparable is $1,327 per unit per month. The subject’s average rent is $1,248, inferior to the comparable and a slight downward adjustment has been processed for economics. Overall, a significant downward adjustment to the market adjusted unit price is warranted.

KTR Real Estate Advisors, LLC



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Page 40


*Comparable Sale No. 3*

Property Name:		Del Mar Village Apartments
Location:		12824 SE 69^thWay
Neighborhood:		Newcastle, WA
Parcel ID:		2824059136
Date of Sale:		December 17, 2010
Grantor:		Delmar Village Enterprises LLC
Grantee:		Del Mar Apartments LLC
Consideration:		$3,046,500
Number of Units:		30
Size (Sq. Ft.):		30,890 square feet
Occupancy:		N/A
Price per Unit:		$101,550 per unit
Price per Square Foot:		$98.62 per square foot
OAR:		N/A


Analysis:		No adjustment for market conditions has been processed. The comparable is located in a slightly inferior section of Newcastle and a slight upward adjustment was applied for location. Age, condition and quality are considered inferior to the subject, requiring a slight upward adjustment. This complex has 30 units, as smaller properties typically trade at a higher price per unit a slight downward adjustment is required for complex size. This comparable’s average unit size is 1,030 square feet which is considered similar to the subject’s average unit size of 1,056 square feet and therefore no adjustment has been applied for average unit size. The comparable does not offer amenities, which is inferior to the subject and a slight upward adjustment has been applied. The average rent for this comparable was not reported; therefore, no adjustment has been processed for economics. Overall, a moderate upward adjustment to the market adjusted unit price is warranted.

KTR Real Estate Advisors, LLC



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Page 41


*Comparable Sale No. 4*

Property Name:		Springfield
Location:		18414 108^thAvenue SE
Neighborhood:		Renton, WA
Parcel ID:		3223059082
Date of Sale:		August 13, 2010
Grantor:		Springfield, LLC
Grantee:		Reinvest Springfield, LLC
Consideration:		$5,887,500
Number of Units:		64
Size (Sq. Ft.):		54,240 square feet
Occupancy:		93.0%
Price per Unit:		$91,992 per unit
Price per Square Foot:		$108.55 per square foot
OAR:		6.75%


Analysis:		No adjustment for market conditions has been processed. The comparable is located in Renton, which is considered inferior to the subject and accordingly a slight upward adjustment has been applied for location. Age, condition and quality are considered inferior to the subject, requiring a slight upward adjustment. The number of units at this comparable is considered similar and no complex size adjustment has been processed. This comparable’s average unit size is 848 square feet which is considered inferior to the subject’s average unit size of 1,056 square feet and therefore a slight upward adjustment has been applied for average unit size. This complex has a pool; therefore, amenities at the comparable are considered superior and a slight downward adjustment has been applied. The average rent for this comparable is $971 per unit per month. The subject’s average rent is $1,248, superior to the comparable and a moderate upward adjustment has been processed for economics. Overall, a significant upward adjustment to the market adjusted unit price is warranted.

KTR Real Estate Advisors, LLC



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Page 42

COMPARABLE SALES ADJUSTMENT GRID


Sale No.	Subject	1			2			3			4
Name	Cedar Rim Apartments	Creekside Apartments			The Aspens @ Ridgeview			Del Mar Village Apartments			Springfield
Address	7920 110th Ave SE	220 Newport Way			20453 Orillia Road			12824 SE 69th Way			18414 108th Ave SE
	Newcastle, WA	Issaquah, WA			Kent, WA			Newcastle, WA			Renton, WA
Sale Date			3/31/2011			12/21/2010			12/17/2010			8/13/2010

Price per Unit		$	114,383		$	169,889		$	101,550		$	91,992

ADJUSTMENTS
Financing Adjustment		$	0		$	0		$	0		$	0

Adjusted for Financing per Unit		$	114,383		$	169,889		$	101,550		$	91,992
Conditions of Sale Adjustment		$	0		$	0		$	0		$	0

Adjusted for Special Conditions		$	114,383		$	169,889		$	101,550		$	91,992
Time			0.0	%		0.0	%		0.0	%		0.0	%

Time Adjusted Price per Unit		$	114,383		$	169,889		$	101,550		$	91,992

Location			0	%		5	%		5	%		5	%
Age/Condition/Quality			5	%		-25	%		5	%		5	%
Complex Size			0	%		0	%		-5	%		0	%
Average Unit Size			0	%		0	%		0	%		5	%
Amenities			-5	%		0	%		5	%		-5	%
Economics			10	%		-5	%		0	%		10	%

Total Adjustments (%)			10	%		-25	%		10	%		20	%

Adjusted Price per Unit		$	125,821		$	127,417		$	111,705		$	110,390


*VALUE CONCLUSION*		After analysis and adjustments, a value range of $110,390 to $127,417 per unit is indicated. Greatest reliance is given to Sales No. 1 and 3 as they required the least aggregate and net adjustments. Sale No. 3 is also the most proximate to the subject. These sales indicated a value between $111,705 and $125,821 per unit. Accordingly, a unit value of $115,000 per unit is concluded for the subject property.

		104 units x $115,000 per unit = $11,960,000

		Accordingly, the Market Value of the Leased Fee interest in the subject property as of June 1, 2011, free and clear of financing, via the Sales Comparison Approach, is rounded to:

TWELVE MILLION DOLLARS

($12,000,000)

KTR Real Estate Advisors, LLC



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Page 43

RECONCILIATION AND FINAL ESTIMATE OF VALUE


*Review*		The purpose of this appraisal is to provide an estimate of the market value of the leased fee interest in the subject property, free and clear of financing. The date of value is June 1, 2011. The indicated market value estimates for the real property interest appraised are:



Income Capitalization Approach		$11,700,000
Sales Comparison Approach		$12,000,000


*Income Approach*		The Income Capitalization Approach seeks to view the subject property’s value from the perspective of the typical investor. This approach reflects the relationship between the income a property is capable of generating and its true value in the marketplace. Typical investors judge the value of a property based upon the quality and quantity of the income generated, as well as the likely impact of market conditions on future income generation. The Income Capitalization Approach, by considering these factors provides a good measure of value for this type of property and has been utilized as the primary approach in concluding to value.

*Sales Approach*		This approach provides an estimate of value based upon the recent activities of buyers and sellers in the marketplace. This approach is generally considered to be reliable in active markets where the motivations of buyers and sellers are known and the operating characteristics of the properties being transferred are available for scrutiny. Market research revealed adequate sales of properties that are considered comparable to the subject property. The value conclusion derived via this approach is considered directly supportive of that concluded via the Income Approach.

*The Cost Approach*		The Cost Approach was excluded from the scope of this assignment.

*Conclusions*		Both the Income Capitalization and Sales Comparison Approaches to value have been processed and suggest a market value between $11,700,000 and $12,000,000. Each approach has merit and similar limitations. As noted above, greatest reliance has been placed on the Income Capitalization Approach. Based on the data, analyses and conclusions contained within this appraisal report, the Market Value of the Leased Fee Interest in the subject property, free and clear of financing, as of June 1, 2011 is:

ELEVEN MILLION SEVEN HUNDRED THOUSAND DOLLARS

($11,700,000)

KTR Real Estate Advisors, LLC



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Addenda



Report Name: P_OS_BudDet_Stnd Application: _FinRep	Standard Property Operating Statement Budget Detail	User: DMcclure
Run Date: January 25, 2011 10:11:09	Scenario: Budget Ledger: Actual Ledger
	Entity: Entity Dept: NODEPT — No Dept
	Prop005763 — Cedar Rim
	For the 12 Months January — December Y2011


	January			February			March			April			May			June			July			August			September			October			November			December			Annual Total
INCOME
p500000 - Market Rent		131,472			131,137			131,530			126,590			127,007			127,169			127,607			128,047			129,914			129,788			130,813			131,833			1,552,908

Non-Subsidized Rental Income		131,472			131,137			131,530			126,590			127,007			127,169			127,607			128,047			129,914			129,788			130,813			131,833			1,552,908

Gross Potential Rent		131,472			131,137			131,530			126,590			127,007			127,169			127,607			128,047			129,914			129,788			130,813			131,833			1,552,908

p522000 - Vacancy Loss		(6,574	)		(5,901	)		(5,919	)		(5,697	)		(5,080	)		(5,087	)		(4,211	)		(4,225	)		(4,287	)		(4,283	)		(5,233	)		(5,273	)		(61,770	)

Vacancy Loss		(6,574	)		(5,901	)		(5,919	)		(5,697	)		(5,080	)		(5,087	)		(4,211	)		(4,225	)		(4,287	)		(4,283	)		(5,233	)		(5,273	)		(61,770	)

Rental Losses		(6,574	)		(5,901	)		(5,919	)		(5,697	)		(5,080	)		(5,087	)		(4,211	)		(4,225	)		(4,287	)		(4,283	)		(5,233	)		(5,273	)		(61,770	)


Net Rental Income		124,898			125,236			125,611			120,894			121,927			122,082			123,396			123,822			125,627			125,505			125,580			126,560			1,491,138


p592001 - Late Charges		786			489			456			640			611			562			703			676			642			659			580			546			7,350

Late Charges		786			489			456			640			611			562			703			676			642			659			530			546			7,350
p599004 - Lease Cancellation Fees		1,715			1,488			1,142			1,756			1,834			1,511			1,381			1,687			1,425			1,805			1,588			1,714			19,046
p599014 - Contra Lease Cancellation Fees		(537	)		(466	)		(358	)		(550	)		(575	)		(474	)		(433	)		(529	)		(447	)		(566	)		(498	)		(537	)		(5,969	)

Lease Cancellation Fees		1,177			1,022			784			1,206			1,259			1,037			948			1,158			978			1,239			1,090			1,177			13,077
p500005 - Month to Month Fee		12			129			153			224			219			181			151			105			90			68			27			12			1,371
p517000 - Parking Income		678			678			678			678			678			678			678			678			678			678			678			678			3,131
p592002 - Nsf Charges		122			67			201			(73	)		65			68			70			101			78			72			37			82			950
p592007- Transfer Fee		31			22			21			24			22			25			21			27			24			30			45			16			309
p592010 - Non Refundable Admin Fees		347			418			413			452			518			737			772			887			561			408			383			300			6,200
p593000 - Cleaning & Damage Fees		264			661			661			1,064			1,196			932			1,330			669			1,461			1,064			801			801			10,904
p593002 - Pet Damage Charges		78			150			149			213			265			167			219			238			189			119			154			68			2,009
p593003 - Contra Cleaning and Damage		(221	)		(555	)		(555	)		(789	)		(900	)		(679	)		(1,012	)		(457	)		(1,123	)		(789	)		(568	)		(568	)		(8,216	)
p599003 - Non-refundable Pet Fees		286			286			286			286			286			286			286			286			286			286			286			286			3,429
p599005 - Application Fees		340			642			491			868			377			453			491			340			151			604			151			151			5,058
p599013 - Monthly Pet Rent		577			600			639			656			658			666			684			713			737			549			550			564			7,592
p599026 - Renters Insurance Service Fee		42			48			60			109			85			73			109			60			91			42			30			18			768
p625007 - Resident Relations Concessions		(778	)		(778	)		(778	)		(778	)		(778	)		(778	)		(778	)		(778	)		(778	)		(778	)		(778	)		(778	)		(9,333	)

Other Misc Income		1,777			2,368			2,418			2,933			2,692			2,808			3,020			2,867			2,446			2,353			1,859			1,629			29,170

Miscellaneous Income		3,740			3,879			3,658			4,779			4,562			4,407			4,671			4,701			4,066			4,251			3,529			3,352			49,597
p590509 - Resident Util Pymts: Water/Swr		5,016			5,523			6,144			4,925			5,755			7,423			6,599			6,894			9,984			7,126			7,318			10,637			83,343
p590513 - Resident Util Pymts: Trash		483			483			483			483			483			483			483			483			433			483			483			483			5,799
p590514 - Resident Util Pymnts: Misc		425			468			521			417			488			629			559			584			846			604			620			902			7,064
p590530 - Resid Util Pymts: Accr Adjs		0			0			(397	)		0			0			2,640			0			0			(2,221	)		0			0			(22	)		0

Utility Reimbursement		5,924			6,474			6,751			5,826			6,726			11,175			7,641			7,962			9,092			8,213			8,421			12,000			96,206
p591008 - AS-Local Telephone		0			217			0			0			217			0			0			217			0			0			217			0			867
p591015 - Other Ancillary Programs		6			6			6			6			6			8			6			6			6			6			6			6			77
p599006 - Individual Washer/Dryer Income		20			20			20			20			20			20			0			0			0			0			0			0			120

Ancillary Services Income		26			243			26			26			243			26			6			223			6			6			223			6			1,063

Other Rental Income		9,691			10,596			10,436			10,632			11,531			15,609			12,319			12,886			13,165			12,471			12,173			15,359			146,866

p637000 - Bad Debt Expense		(700	)		(706	)		(707	)		(684	)		(694	)		(716	)		(706	)		(711	)		(722	)		(717	)		(716	)		(738	)		(8,518	)

Bad Debt Expense		(700	)		(706	)		(707	)		(684	)		(694	)		(716	)		(706	)		(711	)		(722	)		(717	)		(716	)		(738	)		(8,518	)


Effective Gross Income		133,889			135,125			135,340			130,842			132,764			136,975			135,009			135,997			138,070			137,258			137,037			141,181			1,629,487


OPERATING EXPENSES
p633000 - Salaries — Manager		4,112			3,714			4,112			4,019			4,153			4,019			4,230			4,230			4,093			4,188			4,053			4,188			49,111

Salaries - Managers		4,112			3,714			4,112			4,019			4,153			4,019			4,230			4,230			4,093			4,188			4,053			4,188			49,111
p654000 - Salaries — Maintenance		6,673			6,027			6,673			6,647			6,869			6,647			6,996			6,996			6,770			6,796			6,577			6,796			80,466
p659500 - Outsourced Services		153			163			165			151			152			170			152			155			169			153			148			162			1,893
p659800 - Payroll Adjustment		(433	)		(433	)		(433	)		(439	)		(439	)		(439	)		(439	)		(439	)		(439	)		(439	)		(439	)		(439	)		(5,248	)

Salaries Other		6,392			5,756			6,404			6,360			6,532			6,379			6,709			6,712			6,501			6,510			6,286			6,520			77,111

Salaries		10,504			9,470			10,516			10,379			10,735			10,393			10,939			10,942			10,594			10,698			10,339			10,708			126,222
p612501 - Employee Benefits		204			0			0			0			0			0			0			0			0			0			0			0			204
p659814 - Payroll Tax Expense Adj		(45	)		(45	)		(45	)		(46	)		(46	)		(46	)		(46	)		(46	)		(46	)		(46	)		(46	)		(46	)		(546	)
p671100 - Payroll Taxes		1,520			1,363			1,204			1,179			1,218			1,179			1,240			1,240			1,200			1,030			965			997			14,335
p671101 - Office Payroll Tax		290			0			0			290			0			0			290			0			0			290			0			0			1,161
p672200 - Workers Compensation		518			468			518			512			529			512			539			539			522			528			511			528			6,225

KTR Real Estate Advisors, LLC

Page 1 of 6



Cedar Rim Apartments Newcastle, Washington		June 8, 2011 Addenda



Report Name: P_OS_BudDet_Stnd Application: _FinRep RunDate: January 26, 2011 10:11:09	Standard Property Operating Statement Budget Detail Scenario: Budget Ledger: Actual Ledger Entity Entity Dept: NODEPT — No Dept Prop005763 — Cedar Rim For the 12 Months January — December Y2011	User: Dmoolure


	January			February			March			April			May			June			July			August			September			October			November			December			Annual Total
p672300 - Health Ins. & Oth Benefits		2,091			2,068			2,091			2,088			2,096			2,086			2,100			2,100			2,092			2,095			2,087			2,095			25,090
p672301 - Benefits Expense Adjustment		(59	)		(59	)		(59	)		(59	)		(59	)		(59	)		(59	)		(59	)		(59	)		(59	)		(59	)		(59	)		(708	)

Payroll Taxes & Benefits - Property		4,520			3,795			3,709			3,964			3,738			3,674			4,065			3,775			3,709			3,837			3,458			3,515			45,760
p627700 - Leasing Comrn - Amortizable		386			387			388			374			377			378			382			383			389			388			388			391			4,611

Leasing Commissions Comp		386			387			388			374			377			378			382			383			389			388			388			391			4,611
p831001 - Ranking Bonus		1,348			1,217			1,348			1,331			1,375			1,331			1,401			1,401			1,356			1,373			1,328			1,373			16,182
p831002 - Ranking Bonus - Adjust		(571	)		(515	)		(571	)		(564	)		(582	)		(564	)		(593	)		(593	)		(574	)		(581	)		(562	)		(581	)		(6,850	)

Bonus -Property		777			702			777			768			793			768			808			808			782			792			766			792			9,332
p659900 - Repairs Payroll Capitalized		(932	)		(827	)		(875	)		(860	)		(868	)		(848	)		(893	)		(880	)		(860	)		(890	)		(854	)		(876	)		(10,463	)

Capitalized Payroll - Property		(932	)		(827	)		(875	)		(860	)		(868	)		(848	)		(893	)		(880	)		(860	)		(890	)		(854	)		(876	)		(10,463	)
p627600 - Quarterly Special Incentive		73			82			79			68			68			79			69			69			80			69			69			81			888
p633100 - Employee Apartments		3,150			3,150			3,150			3,150			3,150			3,150			3,150			3,150			3,150			3,150			3,150			3,150			37,800

Other Personnel Costs - Property		3,223			3,232			3,229			3,218			3,218			3,229			3,219			3,219			3,230			3,219			3,219			3,231			38,688

Payroll Expense		18,479			16,760			17,745			17,842			17,994			17,597			18,520			18,247			17,843			18,045			17,317			17,761			214,151


Personnel Exp - Property		18,479			16,760			17,745			17,842			17,994			17,597			18,520			18,247			17,843			18,045			17,317			17,761			214,151

p645203 - Gas - List Bills		1,527			1,644			1,580			1,347			1,586			1,294			1,191			970			771			290			1,277			1,321			15,797

Utilities - Gas		1,527			1,644			1,580			1,347			1,586			1,294			1,191			970			771			1,290			1,277			1,321			15,797
p645001 - Electricity - Vacant		661			1,389			653			658			741			414			646			359			734			1,184			1,056			1,021			9,514
p645003 - Etectricity - List Bills		723			713			608			422			669			634			868			532			928			691			672			723			8,181

Utilities - Elec		1,383			2,101			1,261			1,079			1,409			1,048			1,514			891			1,661			1,874			1,728			1,745			17,695
p645100 - Water		2,199			2,088			2,133			2,003			2,175			2,510			2,898			2,786			2,981			2,345			2,283			2,207			28,614
p645300 - Sewer		4,819			5,212			5,280			5,202			4,104			6,561			5,488			5,606			5,582			5,723			5,723			5,723			65,024

Utilities - Water/Sewer		7,018			7,300			7,413			7,210			6,279			9,071			8,386			8,392			8,562			3,068			8,007			7,930			93,637
p647001 - Utility Processing Fees		375			381			400			393			387			405			394			(137	)		377			361			361			361			4,058
p649000 - Misc Utility Charges		115			135			126			111			139			83			111			73			98			144			144			144			1,421

Utilities - Other		490			515			526			503			526			488			505			(64	)		475			505			505			505			5,480

Utilities Expenses		10,418			11,561			10,780			10,140			9,800			11,901			11,596			10,189			11,469			11,738			11,517			11,501			132,609

p626003 - Appliance Rental Expanse		0			0			0			(84	)		(84	)		(84	)		(84	)		(84	)		(84	)		(84	)		(84	)		(84	)		(758	)
p646000 - Contract Cable TV		77			77			77			77			77			77			77			77			77			77			77			77			918
p651900 - Contract Exterminating		206			206			206			206			206			206			206			206			206			206			206			206			2,475
p652500 - Contract Trash Removal		999			999			999			999			999			999			999			999			999			999			999			999			11,990
p653004 - Contract Alarm System		132			132			132			132			132			132			132			132			132			132			132			132			1,589
p653700 - Contract Yards And Grounds		1,904			1,904			1,904			1,904			1,904			1,904			1,904			1,904			1,904			1,904			1,904			1,904			22,845
p654200 - Contract Repairs		92			92			92			92			92			92			92			92			92			92			92			92			1,108
p654402 - Plumbing Contract		127			127			127			127			127			127			127			127			127			127			127			127			1,528
p654703 - Spa-Contract & Cleaning		42			42			42			42			42			42			42			42			42			42			42			42			507
p669900 - Other Contracts		235			235			235			235			235			235			235			235			235			235			235			235			2,814

Contract Services		3,814			3,814			3,814			3,730			3,730			3,730			3,730			3,730			3,730			3,730			3,730			3,730			45,015

p651700 - Contract Cleaning		306			765			765			918			1,071			765			1,224			459			918			765			612			459			9,028
p65G002 - Contract Carpet Cleaning & Dye		170			424			424			508			593			424			678			254			508			424			339			254			5,000
p656003 - Contract Painting-Interior		214			535			535			641			748			535			855			321			641			535			428			321			6,307
p656099 - Decorating - Contract Other		7			7			3			0			0			0			1			1			1			1			1			1			24
p656101 - Drapery/Miniblinds Repairs		8			21			21			25			29			21			34			13			39			25			17			17			270
p656102 - Painting Supplies		106			265			265			318			371			265			424			159			318			265			212			159			3,129

Turnover Expense		811			2,017			2,013			2,412			2,814			2,010			3,216			1,206			2,425			2,015			1,609			1,211			23,758

p651500 - Cleaning Supplies		162			162			162			162			162			162			162			162			162			162			162			162			1,938
p653600 - Landscaping Supplies		0			450			0			0			650			0			0			450			0			200			450			0			2,200
p654101 - Etectrical Supplies		52			52			52			52			52			52			52			52			52			52			52			52			621
p654102- Plumbing Supplies		101			101			101			101			101			101			101			101			101			101			101			101			1,214
p654103 - Appliance Parts		150			150			150			150			150			150			150			150			150			150			150			150			1,796

Repairs & Maint - Supplies		464			914			464			464			1,114			464			464			914			464			664			914			464			7,770
p632924 - Recreation Equipment Maint		10			10			10			10			10			10			10			10			10			10			10			10			123
p654601 - Hvac Parts & Supplies		35			35			35			35			35			35			35			35			35			35			35			35			414
p657000 - Equipment/Vehicle Expense		29			29			29			29			29			29			29			29			29			29			29			29			353
p559001 - Fire Protection Equip Maint		15			15			15			15			15			15			15			15			15			15			15			15			180

Repairs & Maint - Equipment		89			89			89			89			89			89			89			89			89			89			89			89			1,070
p654100 - Repairs/Maint Materials		91			91			91			91			91			91			91			91			01			91			91			91			1,086

KTR Real Estate Advisors, LLC

Page 2 of 6



Cedar Rim Apartments Newcastle, Washington		June 8, 2011 Addenda


Report Name: P_OS_BudDet_Stnd	Standard Property Operating Statement Budget Detail	User DMcclure
Application: _FinRep	Scenario: Budget Ledger: Actual Ledger
Run Date: January 25, 2011 10:11:09	Entity: Entity Dept: NODEPT — No Dept
	Prop005763 — Cedar Rim
	For the 12 Months January — December Y2011


	January			February			March			April			May			June			July			August			September			October			November			December			Annual Total
p654199 - Other Maintenance Materials		185			185			185			185			185			185			185			185			185			185			185			185			2,223

Repairs & Maint - Materials		276			276			276			276			276			275			276			276			276			276			276			275			3,309
p654205 - Interior Building Improvements		34			34			34			34			34			34			34			34			34			34			34			34			407
p654206 - Extenor Building Improvements		26			26			26			26			26			26			26			26			26			26			26			26			316
p656000 - Parking Lot Cleaning & Maint		16			16			16			16			16			16			16			16			16			16			16			16			192

Repairs & Maint - Building		76			76			76			76			76			76			76			76			75			76			76			76			915
p654125 - Water Extraction		2			2			2			2			2			2			2			2			2			2			2			2			24
p612800 - Irrigation Maint		10			10			10			10			10			10			10			10			10			10			10			10			121
p651800 - Recoverable Expenses		2			2			2			2			2			2			2			2			2			2			2			2			30
p652300 - Gas/Oil/Mileage		6			6			6			6			6			6			6			6			6			6			6			6			69
p652501 - Dumpster Expense		9			9			9			9			9			9			9			9			9			9			9			9			104
p654105 - Plumbing Fixtures/Repairs		35			35			35			35			35			35			35			35			35			35			35			35			420
p654109 - Window Replacement		2			2			2			2			2			2			2			2			2			2			2			2			24
p654120 - Keys and Lochs		60			60			60			60			60			60			60			60			60			60			60			60			725
p654201 - Roof Repairs		1			1			1			1			1			1			1			1			1			1			1			1			13
p654209 - Sewer Repairs		11			11			11			11			11			11			11			11			11			11			11			11			133
p654801 - Housekeeping Expense		4			4			4			4			4			4			4			4			4			4			4			4			48
p654903 - Doors		4			4			4			4			4			4			4			4			4			4			4			4			50
p655200 - R&M Rebate - MRO		(30	)		(30	)		(30	)		(30	)		(30	)		(30	)		(30	)		(30	)		(30	)		(30	)		(30	)		(30	)		(360	)
p655201 - R&M Rebate - Other		0			0			0			0			0			0			0			0			0			0			0			0			1
p656005 - Light Bulbs		93			93			93			93			93			93			93			93			93			93			93			93			1,116
p656300 - Misc.		5			5			5			5			5			5			5			5			5			5			5			5			54

Repairs & Maint - Other		214			214			214			214			214			214			214			214			214			214			214			214			2,573
p654115 - Spa-Arnenities		33			33			33			33			33			33			33			33			33			33			33			33			398
p654700 - Pool Expense		62			62			62			62			62			62			62			62			62			62			62			62			746
p654704 - Spa-Repairs & Maintenance		34			34			34			34			34			34			34			34			34			34			34			34			404

Repairs & Maint -Spa		129			129			129			129			129			129			129			129			129			129			129			129			1,548

Repairs & Maintenance		1,249			1,699			1,249			1,249			1,899			1,249			1,249			1,699			1,249			1,449			1,699			1,249			17,185
p615600 - Fire Protection		0			700			0			0			0			0			0			0			0			0			0			0			700

Common Area Expense		0			700			0			0			0			0			0			0			0			0			0			0			700
p621020 - National Web Advertising		1,194			1,194			1,194			1,194			1,194			1,194			1,194			1,194			1,194			1,194			1,194			1,194			14,333
p621021 - AIMCO Web) Site		207			215			225			178			178			217			197			197			218			181			212			209			2,434
p621025 - Contact Center Web Sales		268			268			268			268			268			268			268			268			268			268			268			268			3,213

MKts - Advertising		1,669			1,678			1,687			1,640			1,640			1,679			1,659			1,659			1,681			1,643			1,674			1,671			19,980
p625001 - Referral Fees		25			25			25			25			25			25			25			25			25			25			25			25			299
p25008 - Resident Referral Concessions		63			63			63			63			63			63			63			63			63			63			63			63			750
p625010 - Resident Referral Amortization		94			94			94			94			94			94			94			94			94			94			94			94			1,125
p625012 - Referral Fee Amortization		(13	)		(13	)		(13	)		(13	)		(13	)		(13	)		(13	)		(13	)		(13	)		(13	)		(13	)		(13	)		(154	)
p25025 - Local Locator Fees		174			174			174			174			174			174			174			174			174			174			174			174			2,092

Mktg - Apart Brokers		343			343			343			343			343			343			343			343			343			343			343			343			4,112
p611100 - Marketing Phone Services		90			133			0			90			0			0			90			0			0			90			0			0			493
p621007 - Brochures — New Leases		0			1,046			0			0			0			128			0			0			0			100			0			0			1,273
p621011 - Flags/Banners		55			55			55			55			55			55			55			55			55			55			55			55			665
p621013 - Leasing Promotions		31			31			31			31			31			31			31			31			31			31			31			31			374
p625000 - Signage		8			8			8			1,308			8			8			8			8			8			8			8			8			1,400
p626001- Furniture — Models		21			21			21			21			21			21			21			21			21			21			21			21			248

MKtg - Point of Sale		206			1,294			116			1,506			116			243			206			116			116			306			116			116			4,453
p621015 - Resident Relations		253			253			253			253			253			253			253			253			253			253			253			253			3,036
p625101 - Resident Functions		148			148			148			148			148			148			148			148			148			148			148			148			1,781

Mktg - Retention		401			401			401			401			401			401			401			401			401			401			401			401			4,817

Marketing Expenses		2,619			3,716			2,547			3,890			2,499			2,666			2,609			2,519			2,540			2,693			2,534			2,531			33,362
p629002 - Phone Sales		706			638			705			656			724			787			747			723			726			627			607			657			8,303
p36000 - Wired Telco Services		643			643			643			643			643			643			643			643			643			643			643			643			7,722
Telephone Expense		1,349			1,282			1,349			1,299			1,367			1,431			1,391			1,366			1,369			1,271			1,251			1,300			16,024
p631100 - Office Supplies		354			354			354			354			354			354			354			354			354			354			354			354			4,250
p631101 - Office Equipment		46			46			46			46			46			46			46			49			46			46			46			46			555

Office Exp - Property		400			400			400			400			400			400			400			400			400			400			400			400			4,805
p631104 - Applicant Screening		259			259			259			259			259			259			259			259			259			259			259			259			3,103
p631108 - Credit Card Service Fees		93			93			93			93			93			93			93			93			93			93			93			93			1,119

KTR Real Estate Advisors, LLC

Page 3 of 6



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Addenda


Report Name: P_ OS_ BudDet_Stnd Application: _FinRep Run Date: January 25, 2011 10:11:09	Standard Property Operating Statement Budget Detail Scenario: Budget Ledger: Actual Ledger Entity: Entity Dept: NODEPT — No Dept	User: DMcclure
	Prop005763 - Cedar Rim
	For the 12 Months January — December Y2011


	January		February		March		April		May		June		July		August		September		October		November		December		Annual Total
Credit Expense		352		352		352		352		352		352		352		352		352		352		352		352		4,222
p632500 - Professional Fees		98		98		98		98		98		98		98		98		98		98		98		98		1,173
p632800 - Administrative Support - Fees		25		28		28		24		24		27		24		24		28		24		24		28		308
p634000 - Legal Fees		189		189		439		189		189		439		189		189		439		189		189		439		3,263

Professional Fees		312		315		564		310		310		564		310		310		564		310		310		564		4,745
p639004 - Computer Maint & Supplies		150		280		280		280		295		295		880		880		880		880		880		880		6,860
p655007 - Compliance Fees		26		26		26		26		26		26		26		26		26		26		26		26		316

Computer Expense		176		306		306		306		322		322		907		907		907		907		907		907		7,176
p639011 - Training Materials		8		8		8		8		8		8		8		8		8		8		8		8		99
p639015 - Corporate L & OD Charges		108		108		108		108		108		108		108		108		108		108		108		108		1,300
p639020 - Meeting Costs		93		93		93		93		93		93		93		93		93		93		93		93		1,110
p639030 - Travel Costs - Training		348		536		536		528		528		528		528		528		528		528		528		528		6,174
p639031 - Travel Costs - Other		569		569		569		569		569		569		569		569		569		569		569		569		6,822

Training and Travel		1,126		1,314		1,314		1,306		1,306		1,306		1,306		1,306		1,306		1,306		1,306		1,306		15,505
p617104 - Radios/Pagers		73		73		73		73		73		73		73		73		73		73		73		73		870
p629001 - Dues And Subscriptions		17		17		17		17		17		17		17		17		17		17		17		17		200
p631102 - Bank Charges		106		106		106		106		106		106		106		106		106		106		106		106		1,275
p631105 - Uniforms		179		179		179		179		179		179		179		179		179		179		179		179		2,149
p631106 - Express Mail, Stamps		40		40		40		40		40		40		40		40		40		40		40		40		485
p632525 - H/R-Personnel Costs		72		48		145		289		289		289		241		241		241		193		193		169		2,410
p632918 - Answering Service		25		25		25		25		25		25		25		25		25		25		25		25		299
p639099 - Miscellaneous Administrative		70		70		70		70		70		70		70		70		70		70		70		70		840
p652400 - Plant Rental		391		391		391		391		391		391		391		391		391		391		391		391		4,694
p655100 - Residnt Pmt Platform		47		47		47		47		0		0		0		0		0		0		0		0		189
p655006 - Clbhse Equip/Suppl		10		10		10		10		10		10		10		10		10		10		10		10		119

Admin Exp -Other		1,030		1,006		1,103		1,247		1,200		1,200		1,152		1,152		1,152		1,104		1104		1,080		13,529


Admin Expenses		4,745		4,975		5,387		5,220		5,257		5,574		5,818		5,793		6,050		5,649		5,629		5,909		66,007


Controllable Operating Expenses		42,135		45,242		43,536		44,483		43,994		44,727		46,736		43,383		45,306		45,319		44,035		43,892		532,787


Controllable Net Op Inc		91,754		89,884		91,804		86,359		88,770		92,247		88,273		92,614		92,764		91,939		93,002		97,289		1,096,699


PROP OPS EXP - TAKES & INSURANCE
p671001 - Real Estate Taxes		14,595		14,595		14,595		14,595		14,595		14,595		14,595		14,595		14,595		14,595		14,595		14,595		175,140
p671002 - Personal Property Tax		0		0		164		0		71		0		0		0		0		0		0		0		235

Real Estate & Pers Prop Tax		14,595		14,595		14,759		14,595		14,666		14,595		14,595		14,595		14,595		14,595		14,595		14,595		175,375
p671900 - Business Licenses & Permits		0		0		0		0		0		0		530		0		0		0		0		0		530
p671902 - Sales And Use Tax		432		0		0		374		0		0		316		0		0		426		0		0		1,549

Other Taxes 4 Fees - Prop		432		0		0		374		0		0		847		0		0		426		0		0		2,079
p67200 - Hazard Insurance		2,089		2,089		2,036		2,036		2,036		2,036		2,036		2,036		2,036		2,036		2,036		2,036		24,542
p672500 - General Liability Insurance		401		401		401		401		401		401		401		401		401		421		421		421		4,670

Net Hazard & GL Ins Premium		2,490		2,490		2,437		2,437		2,437		2,437		2,437		2,437		2,437		2,457		2,457		2,457		29,412
p672100 - Crime/Fidelity Insurance		51		51		51		51		51		51		51		51		51		54		54		54		624
p672900 - Umbrella Auto Flood & Other		80		80		80		80		80		80		80		80		80		84		84		84		967

Insurance - Prop		131		131		131		131		131		131		131		131		131		137		137		137		1,591

Taxes & Insurance		17,647		17,215		17,327		17,538		17,235		17,163		18,011		17,163		17,163		17,615		17,190		17,190		208,457

OTH NON-CONTROLLABLE OPERATING EXP
p632000 - Management Fees		6,694		6,756		6,767		6,542		6,638		6,849		6,750		6,800		6,904		6,863		6,852		7,059		81,474

420 Prop Mgmt Exp - Consol		6,694		6,756		6,767		6,542		6,638		6,849		6,750		6,800		6,904		6,863		6,852		7,059		81,474
p615700 - Environmental Expenses		667		667		667		667		667		667		667		667		667		667		667		667		8,000

Noncontrollable - Property Upgrades		667		667		667		667		667		667		667		667		667		667		667		667		8,000

Management, Acctg & Oth Fees		7,361		7,423		7,434		7,209		7,305		7,515		7,417		7,467		7,570		7,530		7,519		7,726		89,474

Property Net Operating Income		66,746		65,245		67,044		61,612		64,231		67,569		62,845		67,984		68,031		66,794		68,294		72,373		798,768

KTR Real Estate Advisors, LLC

Page 4 of 6



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Addenda


Report Name: P_ OS_ BudDet_Stnd Application: _FinRep Run Date: January 25, 2011 10:11:09	Standard Property Operating Statement Budget Detail Scenario: Budget Ledger: Actual Ledger Entity: Entity Dept: NODEPT- No Dept	User: DMcclure
	Prop005763 — Cedar Rim
	For the 12 Months January — December Y2011


	January			February			March			April			May			June			July			August			September			October			November			December			Annual Total
p834000 - Legal		111			111			111			111			111			111			111			111			111			111			111			111			1,333

480 - Pship Legal & Prof		111			111			111			111			111			111			111			111			111			111			111			111			1,333
p831600 - Txs Fees & Lic		0			0			0			110			260			0			0			0			0			0			0			0			370

Pship Other Exp		0			0			0			110			260			0			0			0			0			0			0			0			370

Specific Pship Expenses		111			111			111			221			371			111			111			111			111			111			111			111			1,703

p662000 - Deprec -Buildings		27,768			27,768			27,768			27,754			27,740			27,739			27,395			27,395			27,409			27,423			27,423			27,424			331 007
p666000 - Deprec. - Furnishings		177,580			177,522			177,370			177,204			177,033			176,912			176,789			176,777			176,706			176,641			176,651			176,667			2,123,853

Property Depr & Amortization		205,348			205,290			205,138			204,958			204,773			204,651			204,184			204,173			204,115			204,064			204,074			204,092			2,454,860
p669510 - Deprec. - Non RE Assets		59			67			58			49			49			48			46			46			46			46			46			46			605

Prop Depr Exp-Non RE Assets		59			67			58			49			49			48			46			46			46			46			46			46			605


Noncontrollable Operating Exp		230,526			230,106			230,067			229,975			229,733			229,488			229,769			228,959			229,006			229,366			228,940			229,164			2,755,099


Total Operating Expenses		272,662			275,348			273,603			274,457			273,726			274,216			276,505			272,342			274,312			274,685			272,974			273,056			3,287,887


Operating Income		(138,772	)		(140,223	)		(138,263	)		(143,616	)		(140,963	)		(137,241	)		(141,496	)		(136,345	)		(136,242	)		(137,427	)		(135,937	)		(131,875	)		(1,658,400	)


NON-OPERATING INCOME (EXPENSES)
p549001 - Security Deposit Interest		1			1			1			1			1			1			1			1			1			1			1			1			8

720 - Prop Interest Inc		1			1			1			1			1			1			1			1			1			1			1			1			8

p682001 - Int. Exp. Secured Fixed 1st		(23,841	)		(23,821	)		(23,801	)		(23,780	)		(23,759	)		(23,739	)		(23,718	)		(23,697	)		(23,675	)		(23,654	)		(23,633	)		(23,611	)		(284,729	)
p682002 - Int. Exp. Secured Fixed 2nd		(21,245	)		(21,223	)		(21,201	)		(21,179	)		(21,157	)		(21,135	)		(21,112	)		(21,089	)		(21,067	)		(21,044	)		(21,021	)		(20,998	)		(253,471	)

800 - Prop Interest Exp - Mortgages		(45,086	)		(45,044	)		(45,002	)		(44,959	)		(44,916	)		(44,873	)		(44,830	)		(44,786	)		(44,742	)		(44,698	)		(44,654	)		(44,609	)		(538,200	)
p839017 - Interest Expense - OTEF Loan		723			723			723			723			723			723			723			723			723			723			723			723			8,673
p916003-Amort DLC 1st		(723	)		(723	)		(723	)		(723	)		(723	)		(723	)		(723	)		(723	)		(723	)		(723:			(723	)		(723	)		(8,673	)
p916023- Amort DLC - Other		(524	)		(524	)		(524	)		(524	)		(524	)		(524	)		(524	)		(524	)		(524	)		(524	)		(524	)		(524	)		(6,287	)

805 Prop Interest Exp - Amort of Def Loan Costs		(524	)		(524	)		(524	)		(524	)		(524	)		(524	)		(524	)		(524	)		(524	)		(524	)		(524	)		(524	)		(6,287	)

Prop Int. Exp, Net of Cap Int		(45,610	)		(45,568	)		(45,526	)		(45,483	)		(45,440	)		(45,397	)		(45,354	)		(45,310	)		(45,266	)		(45,222	)		(45,178	)		(45,133	)		(544,487	)

Total Non-Operating Inc(Exp)		(45,610	)		(45,567	)		(45,525	)		(45,482	)		(45,440	)		(45,396	)		(45,353	)		(45,309	)		(45,265	)		(45,221	)		(45,177	)		(45,132	)		(544,479	)


Property Net Income (Loss)		(184,382	)		(185,790	)		(183,788	)		(189,098	)		(186,402	)		(182,637	)		(186,849	)		(181,655	)		(181,507	)		(182,648	)		(181,114	)		(177,008	)		(2,202,879	)


CHANGE IN ASSETS

p149425- Cl GP Supervision Fees		13			(23	)		(23	)		(26	)		(31	)		(153	)		(156	)		(152	)		(32	)		(30	)		(12	)		(9	)		(660	)

GP Fees Cl		13			(23	)		(23	)		(26	)		(31	)		(153	)		(156	)		(152	)		(32	)		(30	)		(12	)		(9	)		(660	)
p179999 -Capital Improvement Allocation		(189	)		(219	)		(230	)		(240	)		(276	)		(1,225	)		(1,214	)		(1,255	)		(293	)		(284	)		(125	)		(109	)		(5,660	)

Allocations Cl		(189	)		(219	)		(230	)		(240	)		(276	)		(1,225	)		(1,214	)		(1,255	)		(293	)		(284	)		(125	)		(109	)		(5,660	)

Capital Improve Alloc		(202	)		(242	)		(254	)		(266	)		(307	)		(1,378	)		(1,370	)		(1,408	)		(325	)		(314	)		(137	)		(118	)		(6,320	)
p146503 -Refrigerators		(130	)		(306	)		(306	)		(367	)		(429	)		(306	)		(490	)		(184	)		(367	)		(306	)		(245	)		(184	)		(3,621	)
p146601 - Carpet - Unit		(441	)		(1,102	)		(1,102	)		(1,323	)		(1,543	)		(1,102	)		(1,764	)		(661	)		(1,323	)		(1,102	)		(882	)		(661	)		(13,007	)
p149599- Wall Covering		(129	)		(322	)		(322	)		(386	)		(451	)		(322	)		(515	)		(193	)		(386	)		(322	)		(258	)		(193	)		(3,799	)

Turn Capital		(700	)		(1,730	)		(1,730	)		(2,077	)		(2,423	)		(1,730	)		(2,769	)		(1,038	)		(2,077	)		(1,730	)		(1,384	)		(1,038	)		(20,427	)
p149998 - Cl Allocation - Turns		48			112			108			126			142			98			151			54			105			84			64			46			1,136

Turn CI Alloc		48			112			108			126			142			98			151			54			105			84			64			46			1,136

Tum CR		(655	)		(1,619	)		(1,622	)		(1,951	)		(2,281	)		(1,633	)		(2,618	)		(984	)		(1,972	)		(1,647	)		(1,320	)		(992	)		(19,291	)
p142419 -Stair Treads & Handrails - Oth		(103	)		(102	)		(127	)		(125	)		(175	)		(2,519	)		(2,444	)		(2,681	)		(312	)		(327	)		(41	)		(42	)		(8,999	)

Project Capital		(103	)		(102	)		(127	)		(125	)		(175	)		(2,519	)		(2,444	)		(2,681	)		(312	)		(327	)		(41	)		(42	)		(8,999	)
p149999- Capital Rep-CI allocation acct		40			39			48			47			65			924			886			961			110			115			14			14			3,263

Project Cl Alloc		40			39			48			47			65			924			886			961			110			115			14			14			3,263
Project CR		(83	)		(63	)		(79	)		(78	)		(110	)		(1,595	)		(1,558	)		(1,720	)		(201	)		(213	)		(27	)		(27	)		(5,736	)
p149901 - CapX -Cap Payroll		(932	)		(827	)		(675	)		(860	)		(868	)		(848	)		(883	)		(880	)		(860	)		(890	)		(854	)		(876	)		(10,463	)

Payroll Capital		(932	)		(827	)		(875	)		(860	)		(868	)		(848	)		(893	)		(880	)		(860	)		(890	)		(854	)		(876	)		(10,463	)
p149997- Cl Allocation - Labor		101			68			74			67			69			204			178			240			77			86			47			49			1,260

Payroll Cl Alloc		101			68			74			67			69			204			178			240			77			86			47			49			1,260

CR Cap Payroll		(830	)		(759	)		(801	)		(793	)		(799	)		(645	)		(715	)		(640	)		(783	)		(804	)		(807	)		(827	)		(9,203	)

KTR Real Estate Advisors, LLC

Page 5 of 6



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Addenda


Report Name: P_ OS_ BudDet Stnd Application: _FinRep Run Date: January 25, 2011 10:11:09	Standard Property Operating Statement Budget Detail Scenario: Budget Ledger: Actual Ledger Entity: Entity Dept: NODEPT — No Dept	User: DMcclure
	Prop005763 — Cedar Rim
	For the 12 Months January — December Y2011


	January			February			March			April			May			June			July			August			September			October			November			December			Annual Total
Total Turn and Project CR		(1,548	)		(2,440	)		(2,503	)		(2,822	)		(3,190	)		(3,873	)		(4,892	)		(3,344	)		(2,956	)		(2,664	)		(2,154	)		(1,847	)		(34,229	)
p144100 - Office Computers		0			(470	)		0			0			0			0			0			0			0			0			0			0			(470	)

Non RE Depreciable Assets		0			(470	)		0			0			0			0			0			0			0			0			0			0			(470	)


CHANGE IN LIABILITIES

p232001 - Principal 1st Mortgage		(3,268	)		(3,289	)		(3,309	)		(3,330	)		(3,351	)		(3,372	)		(3,393	)		(3,414	)		(3,435	)		(3,457	)		(3,478	)		(3,500	)		(40,596	)
p232101 - Principal 2nd Mortgage		(4,095	)		(4,117	)		(4,139	)		(4,161	)		(4,184	)		(4,206	)		(4,229	)		(4,252	)		(4,274	)		(4,297	)		(4,321	)		(4,344	)		(50,619	)

205 - Secured Notes Payable		(7,363	)		(7,406	)		(7,448	)		(7,491	)		(7,535	)		(7,578	)		(7,622	)		(7,666	)		(7,709	)		(7,754	)		(7,799	)		(7,844	)		(91,215	)


CHANGE IN EQUITY

KTR Real Estate Advisors, LLC

Page 6 of 6



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Addenda

PROFESSIONAL QUALIFICATIONS

TERENCE TENER , MAI , ASA
MANAGING PARTNER


EXPERIENCE		Mr. Tener is a founding principal of KTR Real Estate Advisors LLC. Over the course of his career, Mr. Tener has appraised many prominent commercial properties, including the GM Building, 101 Park Avenue, 500 Park Avenue, 410 Park Avenue, 437 Madison Avenue, 475 Fifth Avenue, the Seagrams Building, 900 Third Avenue, Park Avenue Plaza and the Lever House. In addition, Mr. Tener has served as an expert witness in various federal and state courts including New York, New Jersey, Connecticut and Delaware. He has also valued such notable residential and mixed-use properties as CitiSpire, Metropolitan Tower and River Tower. He has been responsible for the valuation of hotels throughout the United States, including the New York Hilton, Washington Hilton, Pittsburgh Hilton, the American Stanhope and a chain of hotels located in Mexico, owned by Groupo Situr. In addition, Mr. Tener has consulted on the valuation of numerous retail properties, including the Smithaven Mall, Herald Center, Sony Entertainment Center in San Francisco and 730 North Michigan Avenue.

LICENSES		Connecticut Certified General Appraiser
		Massachusetts Certified General Appraiser
		Missouri Certified General Appraiser
		New Hampshire Certified General Appraiser
		New Jersey Certified General Appraiser
		New York Certified General Appraiser
		Vermont Certified General Appraiser
		Wyoming Certified General Appraiser
		New York Real Estate Broker

MEMBERSHIPS		Appraisal Institute — MAI Designation since 1978
		American Society of Appraisers (ASA) — Senior Member and former member of
		the Board of Governors for the NY Chapter
		MBA of New York — Board of Governors
		Real Estate Board of New York — Appraisal Committee
		National Association of Real Estate Fiduciaries
		Long Island Board of Realtors
		International Council of Shopping Centers (ICSC)
		Mortgage Bankers Association of America
		Young Mortgage Bankers Association
		Appraisal Institute Metropolitan New York Chapter — Admissions Committee
		and Ethics Committee
		Appraisal Journal Review Committee
		New York’s East Side Association — Former director
		Cardinal’s Committee of the Archdiocese of New York

KTR Real Estate Advisors, LLC



Cedar Rim Apartments		June 8, 2011
Newcastle, Washington		Addenda

PROFESSIONAL QUALIFICATIONS

THOMAS J. TENER
MANAGING PARTNER


EXPERIENCE		Mr. Tener is a founding principal of KTR Real Estate Advisors LLC. He has more than 20 years of broad based experience as a real estate professional, including appraisal, physical condition assessments, environmental site assessments, construction, development, brokerage, property management and receivership. Prior to forming KTR, Mr. Tener was the Chief Operating Officer of a national full service commercial due diligence firm. Under his direction, this firm provided appraisal, environmental, engineering and construction consultation on thousands for investment grade properties annually. Mr. Tener has extensive experience in appraisal, including such unique properties as the former Shoreham Nuclear power plant, the Perimeter Center in Atlanta, GA and numerous trophy office buildings. Mr. Tener has been a guest lecturer and panel member on various appraisal and due diligence topics.

LICENSES		New York Certified General Appraiser #46000033225
		New York Real Estate Broker
		USCG — Third Assistant Engineer
		Receiver NYS Supreme Court

MEMBERSHIPS		Appraisal Institute — Associate Member
		Association of Real Estate Women
		MBA of New York
		National Association of Real Estate Fiduciaries
		Mortgage Bankers Association of America
		Young Mortgage Bankers Association
		ASTM International

EDUCATION		United States Merchant Marine Academy, Kings Point, NY

	•		BS Marine Engineering

	•		BS Mechanical Engineering and Thermal Systems Design

KTR Real Estate Advisors, LLC



		CONCAP EQUITIES, INC. Cedar Rim Apartments June 8, 2011 Page 2


Title Page
Letter of Transmittal
Table of Contents			i
Certificate of Appraisal			ii
Basic Assumptions and Limiting Conditions			iii
Subject Property Photographs & Maps			v

PREMISES OF THE APPRAISAL
Summary of Salient Facts and Conclusions			1
Property Identification			2
Sales History			2
Purpose and Scope of the Appraisal			2
Definition of Market Value			3
Property Rights Appraised			3
Intended Use and User			3
Exposure Time			4

PRESENTATION OF DATA
Regional and Area Analysis			5
Neighborhood Analysis			7
Site Analysis			8
Improvement Analysis			10
Zoning Analysis			13
Real Estate Assessments and Taxes			15
Apartment Market Analysis			16

ANALYSIS OF DATA AND CONCLUSIONS
Highest and Best Use			22
Valuation Process			23
Income Capitalization Approach			25
Sales Comparison Approach			34
Reconciliation and Final Value Conclusion			43

ADDENDA
Additional Subject Property Photographs
Submitted Information
Qualifications of the Appraiser


*COMPARABLE RENTAL 1*		Marina Landing
		1300 North 20^th Street
		Renton, WA 98056


*Units*		186

*Year Built*		1986

*Occupancy*		96%

*Amenities*		Washer/dryer, walk-in closets, patio or balcony, fireplaces and kitchens with standard appliances. Complex amenities include a swimming pool, spa, sauna, fitness center and some covered parking spaces.

*Concessions*		Prices change often and rents for individual floor plans are reduced as needed to help bolster occupancy. There are currently no concessions being offered at this comparable.


*Comments*		Property is located approximately 1.6 miles south of the subject property. This property is in similar condition; however, it has superior views and amenities.


*COMPARABLE RENTAL 2*		Newport Crossing
		Coal Creek Parkway SE
		Newcastle, WA 98059


*Comments*		Property is located approximately 1.3 miles west of the subject property. This property is in similar condition; however, it has superior amenities.


COMPARABLE RENTAL 3		Bella Vista Lake Washington
		2100 Lake Washington Boulevard North
		Renton, WA 98056


*Valuation*		Value is calculated by dividing the stabilized net operating income (including an allowance for Reserves) by the concluded overall capitalization rate. Thus the market value of the leased fee interest is calculated as follows:


*Direct Capitalization Value*
*Conclusion*		The Market Value of the Leased Fee Interest in the subject property, free and clear of financing, by the Direct Capitalization method of the Income Capitalization Approach, as of June 1, 2011, is rounded to:


*Amenities*		The subject offers a limited amenity package consisting of a hot tub and barbeque area. Adjustments for amenities have been made on an individual basis to account for amenities offered.

*Economic Characteristics*		Economic characteristics include all the attributes of a property that affect its income. The subject’s average market rent is $1,248 per unit per month. Adjustments to the comparables have been made on an individual basis.

		The following is a brief description of the relevant building sales considered pertinent in the valuation of the subject property.


EXPERIENCE		Shaun Kest is an Appraiser with KTR Real Estate Advisors LLC. He has five years of commercial appraisal experience. Mr. Kest is actively pursuing designation as a member of the Appraisal Institute.

		Prior to joining the firm, Mr. Kest worked for the Chatham at North Hills where he assisted in the development of a townhouse community development and for East End Properties where he assisted in the development of a shopping center.

LICENSES		New York Certified General Appraiser #46000049297

MEMBERSHIPS		Appraisal Institute — Associate Member since 2007

EDUCATION		University of Miami, Miami, Florida — BBA (Finance)
		Appraisal Institute:

	•		Introduction to Real Estate Appraisal (R-1)

	•		Basic Valuation Principles & Procedures (R-2)

	•		Appraisal Fair Housing (AQ-1)

	•		National USPAP Appraisal Course (15-Hour)

	•		Introduction to Income Property Valuation (G-1)

	•		Principles of Income Property (G-2)

	•		Applied Income Property Valuation (G-3)