APPRAISAL REPORT...2022). This building, of standard quality, has a ground floor of 23,164 square feet, with a mezzanine of 2,819 square feet, for a total of 25,983 square feet. We

APPRAISAL REPORT

285, Hymus Boulevard

Pointe-Claire (Quebec)

O/File 627832E

February 21 2020

Ms. Naomi Lane

Coordinator – Planning Advisory Committee - Urban Planning

City of Pointe-Claire

451 Saint-Jean Boulevard

Pointe-Claire, Québec

H9R 3J3

Subject Demolition Assessment Report, covering the new and depreciated replacement cost,

as well as the estimated potential renovation costs of the building located at 285,

Hymus Boulevard, Pointe-Claire (Quebec).

O/File 627832E

Madam,

Following the contract you have given us, with reference to By-law PC-2818 concerning the demolition of

immovable property, we have estimated the new and depreciated replacement cost of the building

mentioned above. In addition, we have estimated the potential renovation costs of this building. Note

that these estimates will have to be validated with specialized contractors.

The property being appraised is one-storey light industrial oriented building with a mezzanine, built in

1969, based on information recorded on the City of Montreal’s municipal assessment roll (2020-2021-

2022). This building, of standard quality, has a ground floor of 23,164 square feet, with a mezzanine of

2,819 square feet, for a total of 25,983 square feet. We can find office spaces at the front, warehouse spaces

at the back and a mezzanine including a dining room and a warehouse area. Note that the property is

vacant. The building resides on a uniform 63,911 square feet of property, located in a zone Rf3, which is

for mixed residential complex. Note that recent adjacent condo projects have been built and that others

are currently under construction.

For information purposes, the property was sold on September 10, 2019, for $2,600,000, Registration

Number 24 885 363 in the Quebec Land Registry.

Following our visit to the building, considering its general condition and referring to the conclusions of

Louise Coutu, architect, in her diagnostic inspection report (ref. file 1830/ 2020-01-07-01), we came to the

following conclusions:

Replacement cost as new $2,335,000 (± $101/ft²)

Depreciated replacement cost (59% depreciation) $865,000 (± $37/ft2

Estimated renovation cost $325,000

PARIS, LADOUCEUR & ASSOCIÉS INC.

627832E - English

Appraisal Report - 285, Hymus Boulevard, Pointe-Claire (Quebec) 3

On the following pages, you will find a brief physical description of the building being appraised,

photographs taken at the time of our visit on January 7, 2020, a detailed breakdown of the replacement

cost and estimated physical depreciation. You will also find an estimate of the cost of renovating this

building. It should be noted that at the time of the writing of this report, no bids from trade contractors

were available. Thus, the estimated amount for the renovation of the building must be interpreted with

reservations and supported by the appraisals of specialized contractors.

We hope that this will be in accordance with your wishes and to your complete satisfaction. Best regards,


Joëlle Thauvette AACI, P.App.

Chartered Appraiser

JT/ac

att.: Expertise

4

627832E - English

Subject photographs

Building front view

Building side view

Photographs taken on January 7, 2020, by Joëlle Thauvette, AACI

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SUBJECT PHOTOGRAPHS (cont.)

Building rear view

Building side view

Photographs taken on January 7, 2020, by Joëlle Thauvette, AACI

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Table of Contents

TITLE PAGE

INTRODUCTION LETTER

SUBJECT PHOTOGRAPHS ................................................................................................................................................................................ 4

TABLE OF CONTENTS ....................................................................................................................................................................................... 6

1 DESCRIPTIVE DATA .............................................................................................................................................................................. 7

1.1 DESCRIPTION OF THE REAL ESTATE ........................................................................................................................................ 7

1.2 TECHNICAL DESCRIPTION OF THE BUILDING ..................................................................................................................... 8

1.3 MUNICIPAL APPRAISAL ............................................................................................................................................................ 10

1.3.1 PROPERTY HISTORY ................................................................................................................................................................... 10

1.4 GENERAL BUILDING CONDITION .......................................................................................................................................... 11

2 ANALYSIS ................................................................................................................................................................................................ 14

2.1 BUILDING REPLACEMENT COST AND DEPRECIATION ................................................................................................... 14

2.1.1 DEPRECIATION MEASUREMENT ............................................................................................................................................ 14

2.2 ESTIMATED RENOVATION COST ............................................................................................................................................ 16

3 CONCLUSION ........................................................................................................................................................................................ 17

3.1 CORRELATION .............................................................................................................................................................................. 17

3.2 CERTIFICATION ............................................................................................................................................................................ 18

Tables

Table 1 – Replacement cost and depreciation ................................................................................................................................................... 15 Table 2 – Approximate renovating cost of the building .................................................................................................................................. 16

Appendices

Appendix A – Subject photographs

Appendix B – Certificate of location

Appendix C – Professional Qualifications

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1 Descriptive data

1.1 DESCRIPTION OF THE REAL ESTATE

ADRESS 285, Hymus Boulevard, Pointe-Claire

CADASTRAL DESCRIPTION Lot 2 528 414 – Québec cadastre

TYPE OF PROPERTY Light industrial building of standard quality. Concrete blocks

construction and steel structure on a concrete slab. The interior includes

a warehouse, an office and a mezzanine. Note that the building is

currently vacant.

YEAR OF CONSTRUCTION 1969 (based on the City of Montreal's appraisal roll)

ECONOMIC LIFE 50 years

ACTUAL AGE 51 years

APPARENT AGE 40 years

REMAINING ECONOMIC LIFE 10 years

GENERAL CONDITION Based on the inspection of the building as a whole, as well as the

diagnostic inspection report (ref. file 1830/2020-01-07-1), prepared by Ms.

Louise Coutu, architect, we estimate that the physical condition of the

premises is generally good. The building had a normal and inevitable

aging over the years. Note that several components are at the end of their

useful life, that several defects have been noted and should be corrected

in order to extend its economic life and to make the property competitive

in the market. Note that the building is currently vacant.

BUILDING SURFACE AREA Ground floor 23,164 square feet

Mezzanine 2,819 square feet

Total (above ground) 25,983 square feet

LOT AREA 63,911 square feet, of regular shape / rectangular

ZONING RF3 (Mixed residential complexes)

PUBLIC SERVICES The property benefits from all the services offered by the City of Pointe-

Claire (water supply, sanitary sewer, storm sewers, paving and lighting).

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1.2 TECHNICAL DESCRIPTION OF THE BUILDING

EXCAVATION Perimeter trench

FOUNDATIONS Low wall type poured concrete

FLOOR SLAB Concrete

FRAME Masonry walls with steel columns

EXTERIOR WALLS Bricks

Corrugated galvanized steel cladding

Stucco cladding

Concrete blocks

Commercial glassed steel doors

Steel doors with emergency bar

Steel garage doors with electric opening system

Wooden garage door

Strip aluminum windows

Commercial type fixed aluminum windows

ROOF COMPOSITION Flat roof covered with tar and gravel on rigid insulation

Flat roof covered with a TPO membrane on rigid insulation

Flat roof covered with an elastomer membrane on rigid insulation

Metal decking on steel beams

ELECTRICITY 400 A and 600 V electrical inputs

Circuit breaker

Transformers

Fluorescent lighting

Exterior lighting

Emergency lighting

Halogen lighting

Mercury lamp

HEATING Forced air heating and air conditioning (rooftop units)

Electric baseboards / convectors

Gas air heaters

PLUMBING 60 gallons electric water heaters

Copper, ABS, cast iron and steel

Roof drain

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1.2 TECHNICAL DESCRIPTION OF THE BUILDING (cont.)

PLUMBING (cont.) Floor drain

Washrooms with a toilet and a sink

Washroom with two toilets, two urinals and a sink

Sprinkler system

Kitchen sink and a faucet

Drinking fountain

WALLS AND PARTITIONS Concrete blocks

Painted plasterboard

Decorative stone

“Sandwich walls” type metallic walls

Ceramic tiles in the washrooms

Ply-wood

Stainless steel cabinets and counters

FLOOR FINISHES Vinyl tiles

Ceramic tiles

Exposed concrete slab

Carpet

Plywood

CEILING FINISHES Suspended ceiling

Suspended acoustic tiles

Exposed structure

MISC. Alarm and fire system

Emergency exit sign

Manual dryers

Camera, telephone and internet wiring system

Loading dock

Ceiling fans

Steel railings

OUTDOOR LANDSCAPING Sign

Lawn

Paved driveway

Concrete curbs

Concrete porch

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1.3 MUNICIPAL APPRAISAL

THREE-YEAR ROLE 2020-2021-2022

SERVICE NUMBER 7835-71-6500-6-000-0000

MARKET REFERENCE DATE 2018-07-01

LAND VALUE $558,100

BUILDING VALUE $1,077,800

PROPERTY VALUE $1,635,900

1.3.1 PROPERTY HISTORY

REGISTRATION NUMBER 24 885 363

SELLER 2773503 Canada inc.

BUYER 9403-5318 Québec inc.

SALE DATE 2019-09-10

SALE PRICE $2,600,000

COMMENTS N/A

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1.4 GENERAL BUILDING CONDITION

Following our on-site visit and with reference to the diagnostic inspection report (ref. file 1830/2020-01-

07-1) prepared by Louise Coutu, architect, the following is a summary of the building defects that have

been identified. Please refer to the above-mentioned inspection report for the complete set of these

defects.

Foundation: We note several cracks in the foundation walls of the rear extension. Some are located

on one side of the steel columns and could be related to a weakness in the walls. We recommend

monitoring the situation and repairing the existing cracks.

Concrete slab: Several large star-shaped cracks are noted. An assessment to test for the presence of

pyrite is recommended. According to the information gathered, the results of the current test were

still not available on the date of this report.

Roof structure/roofing : We observe rust on the roof deck, a minor flaw. Could be related to a leak.

Monitor the situation.

The loading dock awning is very rusty. Plan a complete overhaul of it.

Traces of water infiltration have been noted around roof outlets. Repair any water leakage from the

roof. Water infiltration traces are also observed on the front left corner of the office wing that could

be traces that predate the replacement of the roofing.

Exterior cladding : Plan to replace stucco sections that have reached the end of their useful life.

We observe traces of efflorescence on the left side brick facings, which could be caused by a lack of

watertightness at the level of the flashing and counterflashing between the walls and the roof.

Correct any defects.

Also, have graffiti on the back brick cladding cleaned off as it could trap moisture.

There are numerous cracks on the concrete block wall of the loading dock. Arrange for repair work

by a mason.

The brick facings require minor repointing and crack repair work. Also, replace caulking repairs

with mortar joints.

The side brick cladding under the strip windows is subject to water infiltration and this creates

cracks. Replace the windows, install flashings and repair the brick.

The left side brick cladding is bulging between two sections of the cladding. Check for any

deficiencies and redo the bulging part.

The steel lintels (mezzanine windows and exit door) are leaking and should be replaced.

Flashing : Install a flashing at the top of the rear loading door frame to prevent water infiltration.

Sealing : Sealing joints are missing or damaged. Re-seal where required to prevent component

deterioration.

Replace, on the surface only, the joint between the two brick claddings with flexible joints that will

not crack.

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1.4 GENERAL CONDITION OF THE BUILDING (cont.)

Doors/Windows : Front wing doors and windows are original and have reached the end of their

useful life. There are traces of condensation and water infiltration. Please replace them in the short

term.

The warehouse strip windows on the left and right side walls are in very poor condition. Please plan

to replace these windows quickly.

One of the garage doors is original and made of wood. Plan for its replacement.

Add weatherstripping to the first dock garage door as well as to the rear garage door to prevent heat

loss and water infiltration.

Stairs : The staircase and the right side exterior landing are completely rusted and also deformed.

Provide for the replacement of this installation.

Exterior landscaping : Proceed with pruning and moving trees or shrubs located too close to the

building at the rear. In addition, remove climbing plants.

Roof : The inspection was limited. Check the age of the roof with the owners to plan for eventual

replacement. When repairing roofs, please add roof drains that appear to be insufficient in number.

The front parapet has a negative slope. Have the slope corrected inwards.

Sprinkler system : See a specialist to check that it is working properly.

Plumbing : Have water hammer arresters installed under each water pipe under the plumbing

fixtures.

Electricity : Current transformers are located on the mezzanine, which is inadequate. An electrical

equipment room must be provided with a waterproof floor.

A cable is unprotected on the front left corner of the building. Remove this cable if necessary.

There appear to be several anomalies in the electrical installation. Have the installations checked by

a master electrician and make the necessary corrections.

There is an abandoned cable on the right side wall. Have the cable removed to ensure safety.

Some electrical outlets did not work while others are incorrectly installed. Have an electrician check

the installations.

Heating/Cooling : The heating/air-conditioning unit on the roof is very old. Arrange for short-term

repair.

Replacement of standard thermostats with electronic thermostats is recommended.

Asbestos : Possible presence of asbestos on the floor tiles.

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1.4 GENERAL CONDITION OF THE BUILDING (cont.)

Walls and ceilings : We notice traces of what could be mould at the bottom of the walls of the

receptionist's space at the front. Perform a test and follow the recommendations. Clean and replace

soiled materials.

Signs of efflorescence are observed on the brick siding in the lobby and could be due to water

infiltration before the roof is replaced. Monitor the situation anyway.

Plan for the replacement of soiled tiles on the office ceilings.

There are signs of water infiltration on the rear wall of the office space. Make sure that the

infiltration is under control and repair the wall.

There are signs of water infiltration at the bottom of the plywood panel in the front left portion.

Monitor the situation.

The building being assessed, which is of standard value, is in good general condition. We agree that its

components hab a normal and inevitable aging over the years. Despite that maintenance and renovation

worsk were made through the years, currently, the building still needs renovation works in order to

extend its economic life and to make the property competitive in the market. Indeed, some of its

components are at the end of their useful life (windows, heating unit and air conditioner on the roof,

roofing parts, etc.) and several defects have been noted and should be corrected (masonry, electricity,

etc.).

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2 Analysis

2.1 BUILDING REPLACEMENT COST AND DEPRECIATION

The replacement cost as new must be distinguished from the cost of reproduction and represents the cost

of replacing a building (and improvement) with one of equal value (based on current construction

standards and equivalent and commonly available materials).

The replacement cost of the building was estimated at $2,335,000 based on the Marshall & Swift Valuation

Services cost manual, published by CoreLogic. This value corresponds to approximately $101.00 per square

foot of living space.

2.1.1 DEPRECIATION MEASUREMENT

The application of the cost method includes the measurement of the various forms of depreciation and

obsolescence that cause a loss in value of the building, in relation to its value in new condition. The

various forms of depreciation are as follows:

Physical depreciation (curable or incurable)

Functional depreciation (curable or incurable)

Economic depreciation

Physical depreciation curable

Curable physical depreciation generally results from deferred maintenance, i.e., the need for a buyer to

carry out in the very short term the repairs or replacements required for the building to return to its

normal state of maintenance and become competitive again.

Physical depreciation incurable

Incurable physical depreciation is the general deterioration of building materials caused by the aging of

the building. Generally, it is the deterioration of building components that cannot be repaired at a cost

less than or equal to the increase in value caused by this repair. Incurable physical depreciation is

measured using the age-life method for each of the building's components, using the Marshall & Swift

table.

For the purposes of this report, we estimated the physical depreciation (curable and incurable) at 63%,

taking into account the general condition of the building. This indicates a depreciated building value of

$865,000, or around $37.00/sq.ft. Note that this depreciation takes into consideration that the building is

of standard quality, that several components are at the end of their useful life and that several defects

have been identified.

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2.1.1 DEPRECIATION MEASUREMENT (cont.)

Table 1 – Replacement cost and depreciation

Composants of actual building Replacement CostPhysical

Depreciation (%)

Depreciation

Replacement Cost

Excavation/Footing/wall foundation 238 279 $ 59% 98 808 $

Frame 255 469 $ 60% 102 188 $

Floor Structure 238 146 $ 60% 95 258 $

Floor covering 79 924 $ 67% 26 158 $

Ceiling 33 602 $ 60% 13 471 $

Interior construction 195 454 $ 55% 87 440 $

Plumbing 34 585 $ 80% 6 917 $

Sprinkler 100 239 $ 80% 20 048 $

Electricity 112 414 $ 71% 32 246 $

Heating/Cooling/ventilation 96 867 $ 66% 33 315 $

Exterior cladding 572 150 $ 65% 199 108 $

Roof 373 372 $ 60% 148 326 $

Miscellanous 5 876 $ 71% 1 695 $

Total 2 336 376 $ 63% 864 979 $

Total (rounded) 2 335 000 $ 63% 865 000 $

Building area 23 164 pi² 23 164 pi²

Unit rate per square feet 100,86 $ 37,34 $

UNIT RATE PER SQUARE FEET (rounded) 101,00 $ 37,00 $

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2.2 ESTIMATED RENOVATION COST

At your request, we have estimated the potential renovation costs of the building, based on our visit and

with reference to the building's diagnostic inspection report (ref. file 1830/2020-01-07-1), prepared by

Louise Coutu, architect. Note, however, that the estimated amount for this work is approximate and will

have to be validated with specialized contractors. Some hypothetical defects observed should be the

subject of more specific expert appraisals and are not included in the renovation costs (possible presence

of pyrite under the slab, smooth operation of the sprinkler system, possible presence of asbestos in the

floor covering tiles, etc.).

Table 2 – Approximate Renovating Cost of the Building

Items Estimated Cost New

Repair of minor cracks 5 000 $

Replacement of the awning of the loading dock 3 500 $

Replacement of the stucco and masonry works (lump sum) 65 000 $

Doors and windows at the front/windows/garage door/weatherstrip 50 000 $

Replacement of roof covering of the rear portion which seems older (addition of drain) 50 000 $

Replacement of the side stairs 2 000 $

Electrical works + compliant electrical chamber (lump sum) 35 000 $

New heating system and rooftop air conditioning 10 000 $

Replacement of vinyl tiles et carpet (office area) 20 000 $

Replacement of suspended tiles 5 000 $

SUBTOTAL 245 500 $

Contingencies (±15 %) 36 825 $

Subtotal 282 325 $

Taxes 42 278 $

TOTAL 324 603 $

TOTAL (rounded) 325 000 $

We therefore estimate the cost of the renovations to be approximately $325,000 (including taxes and

contingency costs). Note that this amount does not include:

Works due to the presence of pyrite under the slab (hypothetical work)

Possible presence of asbestos and decontamination works (hypothetical work)

New sprinkler system if needed (hypothetical work)

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3 Correlation and certification

3.1 CORRELATION

In conclusion, the replacement cost of the building was estimated at $2,335,000 based on the Marshall &

Swift Valuation Services cost manual, published by CoreLogic.

Based on the site visit and with reference to the inspection report (ref. file 1830/2020-01-07-1), ), prepared

by Louise Coutu, architect, we estimate the overall physical depreciation of the building at 63%, taking

into account its general condition. This provides us with a depreciated building value of $865,000. Note

that this depreciation takes into consideration that the building is of standard quality, that several

components are at the end of their useful life and that several defects have been identified.

Additionally, at your request, we estimated the potential cost of the renovations at $325,000, subject to

validation by specialized contractors. This cost does not include some hypothetical work, as mentioned

on the previous page.

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3.2 CERTIFICATION

I certify that I:

Have personally visited the property being appraised on January 7, 2020.

Have not based my remuneration on a predetermined conclusion of value.

Have researched, to the best of my ability, the information contained in this report.

Have no present or future interest in the properties covered by this appraisal report and no personal

relationship with respect to the parties involved.

Have not deliberately omitted or overlooked any material facts in connection with this appraisal.

Have conducted this appraisal in accordance with the rules of the Appraisal Institute of Canada's

Code of Professional Ethics.

I, the undersigned, Joëlle Thauvette, AACI P. App., on this 21st day of February 2020, certify that to the

best of my knowledge, the information contained in this report including the analyses, opinions and

conclusions resulting therefrom is accurate, limited by the assumptions and reservations set out herein.


Joëlle Thauvette AACI, P. App.

Professional Appraiser

Appendix A - 1

Photographs taken on 9décembre 2019, by Joëlle Thauvette, AACI. 627832E - English

Subject photographs

Front of the Building

Adjacent Condos Project

Appendix A - 2



Lateral Side

Lateral Side

Appendix A - 3



Reception

Front Office Space

Appendix A - 4



Office

Warehouse Section

Appendix A - 5



Washroom

Warehouse Section

Appendix A - 6



Warehouse Section

Warehouse Section

Appendix A - 7



Warehouse Section

Mezzanine

Appendix A - 8



Washroom

Mezzanine

Appendix A - 9



Electrical Panels

Electrical Panels

Appendix B - 1

Certificate of location

627832E - English

Appendix C - 1

Professional Qualifications

627832E - English

PROFESSIONAL QUALIFICATIONS - JOËLLE THAUVETTE, A.A.C.I

Academic Studies

2008 Université du Québec in Montréal

Certificate in Real Estate

2006 Université du Québec in Montréal

BAA in Environmental Design (concentration architecture)

2002 Collège Montmorency

Diploma in Arts

Professional Experience

2019 to date Real Estate Appraiser for Paris, Ladouceur & Associates Inc. (appraisals

for financing mortgages and repossessions).

2016 à 2018 Chartered appraiser for Paris, Ladouceur & Associates Inc. (appraisals

for financing mortgages and repossessions).

2012 to 2015 Chartered appraiser for Paris, Ladouceur & Associates Inc. (assessment,

research and analysis for expropriation purposes).

2010 to 2011 Trainee appraiser for Paris, Ladouceur & Associates Inc. (assessment,

research and analysis for expropriation purposes).

Professional Association

Appraisal Institute of Canada

Professional Development

Basic concepts and Income Approach application

Basic concepts and Comparison Approach application

Basic concepts and Cost Approach application

Documents

APPRAISAL REPORT...2022). This building, of standard quality, has a ground floor of 23,164 square feet, with a mezzanine of 2,819 square feet, for a total of 25,983 square feet. We