4543 Lincoln

4543 LINCOLN WAY

PREPARED BY: DIMITRIS DROLAPAS VICE PRESIDENT VANGUARD COMMERCIAL

Dear Albert Chan,

I would like to thank you for the opportunity to provide a broker opinion of value of your property. I specialize exclusively in the sale of San Francisco multi-unit properties and offer clients extensive knowledge of the local market and advanced advisory services.

I have prepared the following broker opinion of value for your building at 4543 Lincoln Way. Your property is unique and my goal is to formulate an accurate valuation by assessing a myriad of factors including current market conditions and interest rates, location, rental income, recent sales comparables and more.

The enclosed broker opinion of value will give you the step by step approach to accommodate your needs. It is divided into the following components

COMPARATIVE MARKET ANALYSIS: Information about and interpretation of current market conditions that will guide our determination of the value of your property.

YOUR CUSTOM MARKETING PROGRAM: A detailed discussion of how we will market your property in order to obtain the highest possible price.

AGENT & COMPANY PROFILE : Background on Vanguard Properties Commercial and information about the team who will be assisting with your sale.

My pricing strategy is to determine a fair market value that would generate substantial activity. It is my goal to provide you with honest information that will help you with your real estate needs.

Sincerely,

DIMITRIS DROLAPAS

VICE PRESIDENT | VANGUARD COMMERCIAL 415.531.9659 dd@vanguardsf.com DRE#01883765

PROPERTY VALUATION

FINANCIAL SUMMARY

Price: $1,700,000

Down Payment: 46% $782,000

Number of Units: 4 Price/Unit: $425,000 Square Feet 3,702 Cost/Sq. Foot: $459

CAP- Current 4.5%

CAP- Pro Forma 6.6%

GRM- Current 14.7

GRM- Pro Forma 10.9 Year Built: 1976

First Loan: $918,000 Interest Rate (5yr fixed): 6.00%

Amortization: 30 Monthly Payment: $5,503.87 Annual Debt Service: $66,046.49

Current Pro Forma

ANNUAL OPERATING DATA

Scheduled Gross Income: $115,969.92 $156,516.00

Less Vacancy Rate: 5% $5,798.50 $7,825.80

Gross Operating Income: $110,171.42 $148,690.20

Less Expenses: $34,519.37 $36,547.34

Net Operating Income: $75,652.05 $112,142.86

Net Cash Flow Before Debt Service $75,652.05 $112,142.86

Debt Service $66,046.49 $66,046.49

Debt Coverage Ratio 1.15 1.70

Net Cash Flow After Debt Service $9,605.57 $46,096.37

Cash on Cash Return 1.23% 5.89%

Current Pro Forma

ESTIMATED EXPENSES

New Property Taxes 1.180% $20,056 $20,056

Insurance $3,519 $3,519 Water $436 $436 Garbage $167 $167

PGE $144 $144 Maintenance $2,400 $2,400 Reserves $2,000 $2,000 Management 5% $5,798 $7,826

Total Expenses: $34,519 $36,547 % of EGI 31.33% 24.58%

1 2br 1bath $2,450.00 $2,800.00

2 2br 1bath $1,792.37 $2,800.00

3 2br 1bath $1,303.79 $2,800.00

$2,200.00

$1,600.00

COMPARABLE SALES

COMPARABLE SALES SUMMARY

Sale Price Recording Date Bldg SF Units Gross Inc GRM CAP $/SF $/Unit Parking Year Built DOM

1471 20th Avenue $2,075,000 11/15/22 4,500 4 $123,622 16.79 4.26% $461.11 $518,750.00 4 1968 14

1300 4th Avenue $1,900,000 7/18/22 3,450 4 $132,612 14.33 4.56% $550.72 $475,000.00 0 1913 55

1250 17th Avenue $1,475,000 12/20/22 3,080 4 $96,281 15.32 4.39% $478.90 $368,750.00 1 1914 64

1551-1557 Judah Street $2,028,888 4/15/22 4,100 4 $104,469 19.42 3.59% $494.85 $507,222.00 4 1938 6

Average of All Comparables 16.46 4.20% $496.40 $467,430.50

AVERAGE OF COMPARABLES

Comp Average Your Property Applied Average

Average GRM 16.46 $115,969.92 $1,909,249

Average CAP Rate 4.20% $75,652.05 $1,801,239

Average $/Foot $496.40 3,702 $1,837,657

Average $/Unit $467,430.50 4 $1,869,722

Average of All Comparables $1,854,467

OVERVIEW

Selling your property means the careful orchestration of advertising, marketing and public relations. The objective is to sell your property for the highest price possible within a reasonable amount of time and the least amount of hassle. We offer the most extensive and highest quality marketing material available and aggressively market properties to ensure our clients are satisfied. Our professional creative talent is located in-house and our agents collaborate to organize a customized marketing campaign for your property with a compelling, modern, informative style.

The following is an outline of the typical marketing efforts you can expect with Vanguard Commercial.

MARKETING PLAN

PROPERTY RESEARCH

The initial step of the marketing process is to obtain all pertinent information regarding the Property. The Vanguard Commercial team will work with the owner to inspect the property to determine the physical condition. The team will then review and prepare all documentation and data for the property including:

Leases, Estoppels

3 Years of Income & Expense Statements

Building Systems

All other existing agreements

Floor Plans

3R Report, UST Report, NHD

Preliminary Title Report

Pest & Contractors Reports

LOCAL PRESENCE WITH A GLOBAL REACH

Vanguard Commercial is at the forefront in the field of marketing. We develop modern, innovative strategies integrating the technology that drives today’s real estate market.

A client’s property is an investment upon which they expect the highest returns. Vanguard’s knowledge of the local market, global networking connections and marketing expertise ensure that the right audience is successfully targeted and their return on investment is fully realized.

IN THE MARKETPLACE PRINT & DIGITAL

We are constantly building stronger brand recognition for Vanguard Properties. This brand building effort promotes an awareness of the company in the market that translates into increased attention to your property. Find us regularly in everything from nationally recognized outlets like Architectural Digest, WSJ.com and NYTimes.com to local publications like San Francisco Chronicle, SF Gate.com, Marin Magazine, The Press Democrat and so many more.

WORLD-CLASS MARKETING

Selling your property means the careful orchestration of advertising, marketing and public relations. Vanguard Commercial’s goal is to reach precisely the right target audience through key local, national and international platforms. Our professional creative talent is located in-house and our agents collaborate to organize a customized marketing campaign for your property with a modern and compelling style.

PHOTOGRAPHY

Over 80% of today’s buyers begin their property search online. If your property’s photos do not stand out on the internet, you may not have as many showings, fewer offers and potentially a lower sale price.

We will send our seasoned photographer to shoot your property inside and out – highlighting your home’s best attributes. Our graphic designers will then edit and touch-up the photos as needed to make your property look its very best in print and on the web.

DIGITAL ADVERTISING

Our Vanguard Commercial listings benefit from exposure across primary online entities including MLS and Loopnet, VanguardProperties.com, www.dimitrisdrolapas.com, Instagram, Facebook, Twitter & LinkedIn which generate over 4,000 views per post.

A professional e-flyer is sent to over 6,500 prospective investors and cooperating real estate agents – linking each to a dynamic marketing package.

DIRECT ADVERTISING

Vanguard Commercial’s team of in-house design professionals will create custom print collateral tailored specifically to the look and feel of your property. With high-end paper finishes, our top-of- the-line photography, and cohesive layouts, your property is sure to leave a lasting impression. The story of your property can be told through postcards and mailers, informative statements, impressive multi-page pamphlets, and eye-catching window displays; we’ll choose the perfect combination to ensure no avenue has been left unattended.

MARKETING

TIMELINE

POSTCARDS

Our quality postcard prints can be sent to thousands of potential investors in an extremely timely manner.

PROPERTY TOURS

All tenants are noticed at least 24 hours prior to any property tour. The property will be hosted on the brokers Tuesday tour as well as private showings on an as-needed basis to cooperate with outside agents and prospective investors schedules.

WEEK 1

The following is an outline of the marketing strategy week-by-week. While this schedule is always subject to change, these are the general parameters of a successful marketing period.

• Sign Listing Agreement

• Inform tenants that building is for sale

• Inspect all units with the listing agent

• Schedule the professional photo shoot

• Collect leases and property information

WEEK 2

WEEK 3

• Complete marketing package

• Design and mail postcards

• Email property information to prospective investors and agents

• Begin phone call campaign to get the word out

• Property is shown on Tuesday Brokers’ tour

• Private tours are given on an asneeded basis with 24-hour notice to tenants

• Set offer date and present offers

•

ABOUT DIMITRIS DROLAPAS

TWELVE YEARS OF EXPERIENCE

• SOLD OVER $200,000,000 WORTH OF COMMERCIAL REAL ESTATE INCLUDING OVER 600 APARTMENT UNITS

• SAN FRANCISCO NATIVE

DIMITRIS DROLAPAS

VICE PRESIDENT, COMMERCIAL 415.531.9659 dd@vanguardsf.com DRE#01883765

EDUCATION: University of California at Riverside

Bachelor’s Degree in Business Administration (Finance) French American International School

Dimitris began his career at Marcus & Millichap in June 2010 as a broker of San Francisco apartment buildings. Within his first six months at the firm, he listed, marketed, and sold a nine-unit apartment building in the city’s Buena Vista Park neighborhood. Shortly thereafter, he listed a 30-unit building in the Haight-Ashbury district which received multiple offers and sold for over asking price.

With more than twelve years of experience under his belt, Dimitris has now sold over $200 million worth of commercial real estate, including over 600 apartment units. While his main focus is on the sale of San Francisco multi-family assets, Dimitris has also sold an array of single tenant triple net lease properties, mixeduse properties, development sites and mobile home parks.

SPECIALIZING IN: Multi-Family Investments Commercial

Dimitris has won numerous awards, including Marcus & Millichap’s Sales Recognition Award, Rookie of the Year Award, and Pace Setter Award. The Pace Setter Award is bestowed upon new agents who meet a high standard of performance during their first 16 weeks following training. To qualify, agents must complete a minimum of 250 calls per week, make at least 10 proposals, and secure two listings. Dimitris averaged 250 calls, completed more than 20 proposals, and secured two listings during that time.

CLIENT T EST IMONIALS:

“We highly recommend Dimitris as an exceptional real estate professional. Through every step of the selling process, he worked tirelessly, with unflagging optimism and enthusiasm. He has an extremely positive attitude that is contagious. His energy is outstanding. He’s truly talented in all aspects of the property business. Anyone who works with him as an agent has a decided advantage. ”

-Ann Marie Yezzi and Stan Koehler

“Dimitris met my expectations, and more. Our first contact was through good old-fashioned “cold calling” which I very much respect as the foundation of a successful career. In an appropriate number of follow up calls, Dimitris demonstrated an impressive level of market knowledge and investment mechanics. During our listing interview he certainly demonstrated that he respects homework and preparation. Though showing respect for my marketing ideas (and grey hair) he adroitly recommended an alternative campaign, which proved very effective.

During the marketing campaign and subsequent negotiation adventure, Dimitris was impressive in his ability to manage tenants, prospects, multiple offers, and final negotiations. He is clearly a master at what he does.

-Jensen & Lianne Wong

“His extensive knowledge of the real estate market and business strategy proved to be beneficial in achieving the best price for us. We would definitely utilize Dimitris again for any of our future real estate brokerage needs, and recommend his services to anyone needing a competent, knowledgeable and friendly advisor.”

“During the process of the sale, Dimitris was always responsive to our needs. He was conscientious and worked many long hours to sell our property at the best price. He was very capable at handling the problems that arose. He was also very skillful in negotiating with the buyer, securing a good final selling price and the quick removal of all contingencies. I commend Dimitris for a successful sale and smooth selling process. I would recommend Dimitris to anyone who is in the market to sell or buy real estate property.”

-JoAnn M. Yuen

Moreover, Dimitris interfaced with my team smoothly and with synergy. In addition to the “hard” skills of running a real estate transaction, he is quite adept at the “soft” skills of maintaining excellent working relationships. After all, selling is a people to people business. What does impress me most, however, is that Dimitris is able to be highly successful while being highly ethical. I have found this combination regrettably rare in my experience, and celebrate it when found.

Bottom line, Dimitris Drolapas is our go to guy for investment real estate in San Francisco.”

-Brian Connolly | Connolly Holdings, LLC

“I owned an 8-unit apartment building near University of San Francisco for nearly 15 years. Like many, if not most, apartment building owners in the city, I received telephone call and mail solicitations from agents monthly throughout this period. Some mail solicitations said the agents had clients who were buying buildings like mine in the area and would be interested in looking into buying mine. Tempted by an easy transaction, I entertained two such potential buyers on separate occasions, both of which went nowhere and led me to suspect no potential buyer existed. A few agents persisted over the years, needling for the opportunity to list it. Dimitris Drolapas was one who persisted, for more than a decade, though gently so, more to periodically update me on the market. At times, we discussed the projects at the building, like the soft-story retrofit, with him explaining how the work would facilitate marketing the building whenever I might sell. Though not interested in selling, I was interested in keeping informed about the market and valued being able to chat about how the projects, though costly, would return value at some future date. When the time to list came, I had no shortage of names and no difficulty choosing Dimitris, an agent who had been straightforward with me, without pressure or deceit, for more than 10 year.

The choice was a good one. I had bought and sold rental property in San Francisco a few times, and m as any owner can attest, doing so can be fraught with difficulty and risk. Agents, in my experience, tend to minimize the time they spend on the details of a sale once the contract is signed. This was not so with Dimitris. He managed the marketing so well that more than one offer was made, with potential buyers bidding against each other, with the winning offer removing all contingencies.

The transaction with Dimitris’ management is a model for others. ” -Robert J Spjut

“Dimitris got me more than my asking price for my 5 unit apartment building (in the Sunset district of San Francisco) at the height of the 2020 COVID Pandemic. Comparable properties were selling for less, or not selling at all. I’m sure that his great marketing package, complete with professional photography, was very instrumental in generating interest.

He was deftly able to manage the anxieties of both myself and the buyer’s agent in a reassuring and friendly manner. He did whatever was required in order to get the deal done and completed.

I highly recommend Dimitri for his knowledge, experience, and problem solving abilities in selling commercial real estate. He also has a very warm and friendly manner which makes him great to interact with. He was readily available to communicate in a timely fashion, which was especially necessary with such a short escrow. Needless to say, I feel very fortunate to have found him.”

- Joyce Bezazian

“We appreciate all of the time, effort and patience that you have provided while helping us sell the building at 1304-1314 Hyde Street. We realize that you had to go beyond the call of duty in ensuring that all the records were located and coordinate things.

We feel that the entire transaction went smoothly because of you. You kept all three of us informed via text, email and phone. We would highly recommend you to friends and family. We know that our parents would have been happy with how smooth the transaction went.”

- Larry, Judi & Susan

VANGUARD COMMERCIAL

At Vanguard Properties, our agents have genuine in-depth knowledge of the San Francisco Bay Area, and understand the constantly evolving regulations, ordinances and practices that potentially make the selling process overwhelming. Our agents are customer service driven and will connect with their buyers and sellers with enthusiasm and attention to detail. Our professional staff and distinct sense of style set us apart, but what truly defines us is our unwavering dedication to making a difference in your real estate buying and selling experiences.

DIMITRIS DROLAPAS VICE PRESIDENT VANGUARD COMMERCIAL