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Improvements Analysis <br />16 <br /> <br />ECONOMIC AGE AND LIFE <br />CBRE, Inc.’s estimate of the subject improvements effective age and remaining economic life is <br />depicted in the following chart: <br />ECONOMIC AGE AND LIFE <br />Actual Age 34 Years <br />Effective Age 34 Years <br />MVS Expected Life 45 Years <br />Remaining Economic Life 11 Years <br />Accrued Physical Incurable Depreciation 75.6% <br />Compiled by CBRE <br />The remaining economic life is based upon our on-site observations and a comparative analysis <br />of typical life expectancies as published by Marshall and Swift, LLC, in the Marshall Valuation <br />Service cost guide. While CBRE, Inc. did not observe anything to suggest a different economic <br />life, a capital improvement program could extend the life expectancy. <br />DEFERRED MAINTENANCE / PROPERTY IMPROVEMENT PLAN COST <br />The appraiser asked ownership multiple times for a detailed list of planned capital expenditures <br />and/or further details regarding items required for ongoing brand compliance but was denied <br />any specific information. Ownership stated minor cosmetic items would be addressed in the <br />coming months but would not elaborate any further. Additionally, no property condition report <br />(PCA) or engineering report was provided. <br />Our inspection of the property indicated various items of deferred maintenance including exterior <br />repair, carpet, paint, damages to interior as a result of vandalism, etc.. Again, in speaking with <br />ownership representatives no large-scale PIP is planned, however, it is the appraiser’s judgement <br />that some near-term capital will be required (in order to remain competitive as well as comply <br />with brand standards). Based upon the appraiser’s review of market PIP costs the following <br />amount has been estimated. It is an extraordinary assumption this estimate is correct; the reader <br />is advised any adjustment to this figure would result in an adjustment to the conclusions <br />rendered. <br />ANALYSIS OF DEFERRED MAINTENANCE <br />Estimated PIP ($2,500/unit) $160,000 <br />Subtotal $160,000 <br />Plus: Profit @ 10% $16,000 <br />Total Deferred Maintenance $176,000 <br />Source: Appraiser Estimate