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V a l u a t i o n P r o d u c t D e s c r i p t i o n

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Choice (A)

$750 C-Store & Gas Station Property Evaluation Report MEETS FDIC INTERAGENCY GUIDELINES FOR EVALUATIONS

Choice (B)

$950 C-Store & Gas Station Property Automated Summary Appraisal Report MEETS USPAP AND STATE LICENSING REQUIREMENTS FOR A CERTIFIED APPRAISAL

Choice (C)

$3,500 C-Store & Gas Station Property Summary Appraisal Report MEETS USPAP AND STATE LICENSING REQUIREMENTS FOR A CERTIFIED APPRAISAL

You can download samples of all three reports at the following link.

SAMPLE REPORT DOWNLOADS

methodology

Projections under typical management (fee simple value) for:

(a) Annual gallonage (b) In-store sales (c) Gross profit (d) Adjusted EBIDTA (e) NOI to real estate

The Evaluation Reports consider and adjust the real estate value for: Supply and demand in the trade area (3-minute drive-time) Hypermarket competition Resident population demographics Reliable and supported value estimates for:

• Real Estate (site, store building, fuel service, car wash) • Equipment (moveable personal property) • Business Value (intangible assets)

Primary approach is the Income Approach using a Capitalization of Earnings under typical management as recommended by International Valuation Standards (IVS SR-232). Support to the primary valuation approach from summary Cost Approach and summary Peer Group sales within the State.

Choice (A)

$750 C-Store & Gas Station Property Evaluation Report COMPLIANT WITH FDIC INTERAGENCY GUIDELINES FOR EVALUATIONS

Delivered within 72 Hours NATIONWIDE

1 You can download samples of all three reports at the following link.

SAMPLE REPORT DOWNLOADS

Choice (B)

$950 C-Store & Gas Station Property Automated Summary Appraisal Report COMPLIANT WITH USPAP AND STATE LICENSING REQUIREMENTS FOR A CERTIFIED APPRAISAL

State-Certified, Summary Appraisal Report. NATIONWIDE. Same as Choice A with the addition of certifications and licenses meeting the requirements for a state-certified, summary appraisal report. Transaction amounts greater than $1 million. Inspection option available for $1,200.

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You can download samples of all three reports at the following link.

SAMPLE REPORT DOWNLOADS

Choice (C)

$3,500 C-Store & Gas Station Property Summary Appraisal Report COMPLIANT WITH USPAP AND STATE LICENSING REQUIREMENTS FOR A CERTIFIED APPRAISAL

Trade Area Inspection Surveillance of the 3-Minute drive-time trade area (primary market). Viewing of competitive locations and hypermarkets, traffic volumes and patterns, 2-Part Appraisal Report (described on following page)

Subject Property Inspection Original field measurements of all improvements. Interior and exterior viewing. Access points and street visibility measurements.

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You can download samples of all three reports at the following link.

SAMPLE REPORT DOWNLOADS

Part 1 of the Report The fee simple estate for the tangible and intangible assets. This value is based on market-level earnings for stores of the subject's particular physical configuration at the subject's specific location under typical management. The fee simple value does not rely on the operator’s historic (actual) profit and loss statements. The fee simple value is based on how a typical operator would perform with the subject’s real estate assets at the fixed location. Because this is the fee simple value, this value is irrespective of the existing brand, supply and service contracts. Approaches used in Part 1 of our appraisals: Capitalized Earnings Approach · Developed for the Tangible Assets, Real Property. · Excess earnings estimates, if any, applied to value estimate of Intangible Assets. Sales Comparison Approach. · Developed for the Tangible Assets, Real Property. Cost Approach · Developed for the Tangible Assets, Real Property. · Developed for Tangible Assets, Non-Realty (FF&E). Part 2 of the Report The value Under Current Operations. This value is based on the business’s ability to generate earnings under the existing supply contracts, branding agreements, and historical financial performance, and current management. Business Operating Agreements (BOA) and branding agreements for the convenience store or gas station are not part of the recorded title to the real property. Often these contracts do not automatically transfer with the sale of the real estate. In many cases, these agreements either terminate upon the transfer or are renegotiated between the new parties, if the property sells. The value Under Current Operations assumes the existing business operating agreements remain in place and that the quality and depth of management remains unchanged. This estimate is more of an economic performance measure, which can show for example, the current business’s ability to satisfy the debt requirements of the fee simple interest. The value estimate of the real estate and other physical assets of the property Under Current Operations is limited in its applicability and should not be assumed to reflect transferable market value. In the event of foreclosure, the value Under Current Operations will likely not be realized by the mortgagee, or Deed of Trust beneficiary. Approaches used in Part 2 of our appraisals: Capitalized Earnings Approach · Developed for the Tangible Assets, Real Property. Excess earnings estimates, if any, applied to value estimate of Intangible Assets. For the reasons above, rather than expressing a value estimate, this economic characteristic is usually included in our appraisal reports as an index.

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part of our success." - Property Tax Appeal,

International Convenience Store Chain

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The primary method of valuation is a capitalization of EBIDTA income approach. This method is recommended by the Appraisal Institute’s Convenience Stores and Retail Fuel Properties: Essential Appraisal Issues and International Valuation Standards (IVS Guidance Note 13 and SR 232). Additional support for the valuation estimate includes a summary cost approach and local peer group NAICS 4471 sale transaction summaries. These Evaluation Reports and Automated Summary Appraisals include projections under typical management (fee simple value) for:

a) Annual gallonage (b) In-store sales (c) Gross profit (d) Adjusted EBIDTA

(e) NOI to real estate

WE DO NOT: With c-stores and gas stations, real estate usually comprises about 90% of the value of the going concern. Most appraisers subtract the cost approach value of the real estate from the EBIDTA capitalization, which makes the real estate value a constant and leaves intangible asset value residual. This is not good appraisal practice and is simply an expression of the cost approach two times for the highest-value asset of the business. WE DO: Our Evaluation Reports and Automated Summary Appraisals leave the value of the real estate residual in the capitalized income approach so that the real estate’s location strengths and weaknesses as measured by earnings potential are reflected in the value estimate. The Evaluation Reports and Automated Summary Appraisals consider and adjust the real estate value for:

• Supply and demand in the trade area (3-minute drive-time) • Hypermarket competition • Resident population demographics

Most appraisers do not consider or adjust for these important characteristics, even in higher costing state-certified appraisals. Our Evaluation Reports and Automated Summary Appraisals are often more accurate and reliable than many other vendors’ expensive state-certified appraisal reports because we follow industry-recommended valuation procedure of using a capitalization of earnings income approach for this specialized type of property.

All reports include valuations of :

Real Estate Equipment

Business Value

methodology

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