Page 127 - Guardian Broker Questionnaire Summary Complete Package 2 2 22_Neat

this would include market rate buyers, affordable buyers and non-profits.

• Benefits or limitations in considering separating buildings from land—Long term ground
lease
• The only benefit would be to create a long term income stream back to UMFS but
this would be at the expense of up front value of the buildings. There are less
groups who buy assets on a ground lease than those who buy fee simple
transactions, either because they cannot (investment capital raised predicated on
fee simple purchases only) or will not because of the nuance. In our experience the
cap rate is reduced by 25bps – 35bps if a property is being sold subject to a ground
lease, which in this example would also be applied to a lower NOI that would take
into account the expense of the new ground lease.

• Benefits or limitations in doing partial sale—GP I now, II later
• Both assets are highly desirable and would be well received in the market no matter
when they were sold. Because of the differences we would recommend putting both
to market at the same time as a portfolio with the optionality of acquiring one or
both. This allows groups who want to realize the mark to market strategy or re-
syndicate the credits immediately the ability to with Guardian Place I only. The deal
size for both assets (individually and as a portfolio) is very attractive for a variety of
capital types. Larger investors will only be interested in the two properties together
and having groups interested in individual assets will add competition to portfolio
purchasers. Maximizing the amount of groups engaged to purchase the asset(s)
through optionality will enhance the overall buyer pool, create additional
competition and yield more in price.

• Please provide comparable sales data to support your thinking.

• Please see p.7 in the C&W BOV_Guardian Place_FINAL

• Method of sale—Guidance--Offering price or not – call for best and final.
• We conduct a blind auction process where we market the assets through e-blasts,
phone calls, and investor tours for approximately 4-6 weeks. After marketing we call
for an initial round of offers followed by a best and final round of offers. We typically
conduct buyer interview calls with C&W, UMFS and the top groups after the B&F
round so UMFS can get acclimated with who the groups are, their plans, capital, etc.
Typically we give a final counter to the group UMFS decides they want to do
business with to try to extract more purchase price, terms or both after the buyer
interview. The market is very competitive and there are groups who will want to
take the property off the market either before or during the process. The process
yields the most in price but achieving an acceptable value without having to run a
full marketing also has benefits to certain owners. C&W can discuss in more detail
the pros and cons of this strategy should UMFS want to entertain or be interested in
this structure.

6) Any operational or management recommendations to improve/enhance NOI prior to
marketing.

• None. Buyers will underwrite expenses particularly the way they know how to operate