Tom Moulton, CCIM, SIOR & Katie MillettNAI The Dunham Group

207-773-7100tmoulton@dunhamgroup.comkmillett@dunhamgroup.com

Opinion of Value &Marketing Proposal15 Lund Road

Saco, Maine

3 Section 1 Executive Summary

4 Section 2 Property Summary

6 Section 3 Value 6) Comparable Sale Value

7) Income Approach Value

8) Residual Land Value

9) Proposed Lease Rate

10 Section 4 Marketing Plan & Commission

13 Section 5 NAI The Dunham Group

Table ofContents

2

3

Section 1Executive Summary

Executive SummaryThank you for the opportunity to provide you with an opinion of value and marketing proposal for property located at 15 Lund Road in Saco and currently owned by Maine Sports Realty, LLC. 15 Lund Road is a unique property and our recent tour of the facility reconfirmed our belief that the property is a quality investment grade asset which would appeal to a variety of buyers.

In addition to our valuation of the property, we have also included a marketing proposal for the property including a marketing implementation schedule and plan, an outline of our qualifications/experience, and a proposed commission structure.

In order to value the property, we utilized both a comparative sale and income approach. There are very few recent comparable sales of the same quality as the subject property and as a result, our comparables were adjusted up in value. The value of the property from a comparable sale value is $7,163,290 or $85.00/SF.

To value the property from an income approach, we utilized the existing rental income, assumed the vacant space was leased up at $13.00/SF NNN and applied to an 8.5% capitalization rate. The resulting value is $7,511,764 or $89.14/SF.

In addition to valuing the building and associated land, we also attempted to value the residual land. Without a wetlands study it is difficult to determine the exact residual saleable acreage. Based on comparable land sales, we would anticipate a value of $45,000 per acre could be achieved.

Based on the strength of the investment market, the quality of the building, location of the property, and potential residual land value, we feel the current market value of 15 Lund Road is between $7,100,000 & $7,600,000. We would suggest a list price of $7,700,000. At this price we would anticipate a sale could be achieved in 3-6 months.

2Address

15 Lund Road, Saco, Maine

Owner

Maine Sports Realty

Assessor & Deed Reference

Map 69, Lot 7-1

Book 15410, Page 467

Year Constructed

1968

Zoning

Industrial (I-2)

Assessed Value

$4,034,000

Annual Tax Amount

$78,340.28

Section 2PropertySummary

4

Property Overview

Specs

Size: 84,274± SF

Lot Size: 24± acres

No. of Stories: One

Construction: Steel framed

HVAC: Gas fired, central AC

ADA: Yes

Building Use: Industrial, medical, office,and recreation

Current Tenants

Maine Jr Volleyball Club, Inc.

River Rats Athletic Management, LLC

Orthopedaedics Assoc. Saco

MSL Associates, LLC

Phelps Swimming

Lynch

Kennebunk Gymnastic/Sports

Vacant Space

3,516± SF of Class A office space

2 PropertySummary

5

3Section 3Value

66

Comparable Sale Value

Building Size Sale PriceSale Date Price/SFAddress

28 Pond View Drive, Scarborough*Single tenant

75 Washington Avenue, Portland*Significant vacancy at time of sale

80 Anthony Avenue, Augusta*Inferior location

75 Spring Hill Road, Saco*Industrial use, vacant at sale

74,976 SF

101,000 SF

33,560 SF

33,550 SF

4/1/15

4/7/14

4/28/17

6/8/16

$5,380,000

$7,255,000

$1,900,000

$2,133,000

$71.76

$71.83

$56.62

$60.00

Average Price/SF = $65.05Adjusted Price/SF = $85.00

Value when applied to subject (84,274 SF) @ $85.00/SF = $7,163,290

In order to value the property from a comparable sale approach, we canvassed the Southern Maine industrial/investment market for recent salient comparable sales. Given the uniqueness of 15 Lund Road, and its tenant mix, it was difficult to locate any recent sales that are truly comparable. That being said, we wanted to include several recent sales to demonstrate generally where the market is at this time and to give us a base price/SF for our comparable sale valuation.

Income Approach Value

7

3 Value

Size Monthly RentLease Term Rent/SFTenant

Maine Jr Volleyball Club, Inc

River Rats Athletic Management, LLC

Orthopedaedics Assoc. Saco

MSL Associates, LLC

Phelps Swimming

Vacant Space

Lynch

Kennebunk Gymnastic/Sports

26,000 SF

7,500 SF

23,508 SF

4,440 SF

3,000 SF

3,516 SF

668 SF

154 SF

$13,083.33

$5,000.00

$25,396.00

$5,000.00

-

$3,809.00

$670.00

$250.00

$6.04

$8.00

$12.96

$13.51

-

$13.00

$12.04

$19.48

10/31/16 - 11/15/26

10/31/16 - 11/14/21

00/00/00 - 07/31/40

00/00/00 - 11/15/26

00/00/00 - 11/15/17

-

05/01/17 - 04/30/22

05/01/17 - continues notice

Total Monthly NNN Rent = $49,399.33Total Annual NNN Rent = $592,791.96

Total Stabilized Annual Rent** = $638,499.96** Assumed vacant space if filled at $13.00/SF NNN

Stabilized Net Operating Income = $638,499.96Value when 8.5% capitalization rate applied = $7,511,764.24

In order to value the property from an income perspective we utilized the existing rental income for the property, assumed a rental rate of $13.00/SF for the vacant space and utilized a capitalization rate of 8.5% which we feel is appropriate for this location and building type.

Residual Land Value

8

3 Value

The total acreage of the property is 24 acres. The building, associated parking and room for additional future parking consists of approximately 10± acres. To understand the value of the residual land, it would be beneficial to conduct a wetlands and soil study. Assuming that the residual land is buildable, we would apply a value of approximately $45,000 per buildable acre based on the following recent comparable land sales:

Site Size Sale PriceSale Date Price/AcreAddress

24 Industrial Park Road, Saco

8 & 9 Digital Drive, Biddeford

5.25 acres

2.37 acres

7/22/16

12/30/15

$275,000

$92,500

$52,380

$39,029

Average Price/Acre = $45,704

Proposed Lease Rate

9

3 Value

In order to determine a competitive lease rate for the vacant space in the building, we canvassed the Saco office/flex market for salient comparable leases between 2,000 SF and 5,000 SF. We were able to locate the following recently completed lease transactions:

Based on the quality of the building and strength of the market, we would suggest a listing lease rate of $13.50/SF NNN for the vacant space. At this rate, we would anticipate the space to lease up in 3-4 months and will likely end up leaseing for approximately $13.00/SF depending on term length and tenant improvement requirements.

Suite Size Lease Date Price/SFAddress

3 Eastview Parkway, Saco

352 Alfred Street, Biddeford

380 Alfred Street, Biddeford

2,332 SF

2,484 SF

2,700 SF

1/4/16

10/27/16

4/7/16

$8.00 NNN

$16.00 NNN

$14.00 NNN

Average Lease Rate = $12.67/SF NNN

4Marketing 15 Lund Road

Section 4Marketing Plan& Commission

10

Our experienced Marketing Department designs and produces our marketing materials in-house. This enables us to develop and implement timely and effective marketing media, custom designed for the most effective and innovative marketing effort possible.

What will we do for you?

Marketing Package: A detailed brochure and profile which includes digital photography, property specifications, building layouts, floor plans, tax map, aerial map, income and expense information and the appropriate zoning ordinances. Printed and email brochures. Within one week

Signage: A site-specific real estate sign will be installed on your property, if possible, clearly promoting its availability. Signage is a valuable tool in generating prospect interest and in making the property’s availability clear to area real estate investors, developers, brokers and prospective end users. Within two weeks

Online Resources: All of our properties are listed online at www.dunhamgroup.com, www.necpe.com and www.loopnet.com. All three websites generate a consistent source of leads. Your property will be rotated on our website as a featured property. In addition, we send broadcast email flyers to all of the area commercial brokers. If appropriate, we will feature your listing on our news feed and in social media. Within two weeks

4 Marketing Plan& Commission

11

Marketing Timeline

Exclusive Listing Agreement signedBegin contacting top prospectsPrepare detailed Offering MemorandumPrepare marketing brochure & HTML flyerEmail HTML flyer to database of prospectsFollow up with ProspectsBest and Final round Select BuyerUnder ContractDue DiligenceClose

Weeks 1-2 Weeks 3-4 Weeks 5-6 Weeks 7-14 Weeks 15-16

Print Advertising: We advertise our listings as needed in the Maine Sunday Telegram/Portland Press Herald, MaineBiz, Lewiston Sun-Journal, The Forecaster and other publications as needed. Your property will be rotated within our ad schedule. We also write and send out press releases as a service to our buyer clients.

Industrial Market Survey: If appropriate, the property will be featured in our annual survey of the Greater Portland industrial market. It is mailed to a targeted list of over 5,000 local companies, investors, and clients. Photographs and summaries will promote our exclusive industrial listings in the next survey.

Direct Mailer: A color, user-friendly mailer, highlighting salient aspects of the property is distributed, if necessary, to qualified prospects.

Networks: We will utilize our company database, as well as the following affiliations and organizations to procure prospective tenants: NAI Global, CCIM, SIOR, ICSC and Retail Brokers Network.

Cooperating Broker Relations: We will utilize the professional relationships we have with all area brokers to network and promote your property. We will split commission 50/50 with cooperating brokers.

Commission

12

We would request an Exclusive Right to Sell or Lease Agreement for a period of nine (9) months. We would request a sale commission equal to 3.5% of the final purchase price if its co-brokered with another broker or 2.5% if we are the only brokerage. We would request a lease commission equal to five percent (5%) of the aggregate net lease for the initial lease term.

We would like to take this opportunity to express our sincere regret regarding the way a previous transaction with Spectrum was handled by other brokers within our firm. We were very disappointed to learn how Spectrum was treated during this transaction and realize that this reflects poorly on our firm as a whole. Our 21 year brokerage relationship with Spectrum is extremely important to us and we wish there had been something that we could have done to alleviate the damage done during that transaction. As a gesture of good will and in an attempt to repair this relationship, we would like to offer to reduce our commission by $50,000 in the event we sell the building. We hope this provides Spectrum with some assurance that the previous incident is not reflective of how we operate our brokerage business and how we treat our clients.

4 Marketing Plan& Commission

About NAI The Dunham Group

5Section 5NAI The Dunham Group

13

For over 40 years, NAI The Dunham Group has provided in-depth, commercial real estate knowledge, market specialization, and proven representation to our loyal client base. Unlike other firms, NAI The Dunham Group brokers focus on specific sectors; office, retail, industrial, multi-family, land, or investment, and become experts in their industries. Market specialization allows us to easily track available properties, monitor current prices and predict market trends. Our team approach, along with our adherence to the highest ethical standards and our commitment to education and retention of the best personnel, allows us to develop trust and long-term relationships with our clients.

While our record of success includes brokering many of Maine’s most recognizable commercial properties, we pride ourselves on the personal attention we give to each and every client. Whether you are an individual investor, a small business owner, or the CEO of a large corporation, NAI The Dunham Group will help you attain your commercial real estate goals while treating you as a respected and valued client.

NAI The Dunham Group is the Maine affiliate office of NAI Global. For more information please visit www.dunhamgroup.com.

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