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CONTRACT OF SALE CONTRACT FOR THE PURCHASE AND SALE OF REAL PROPERTY GOVERNMENT OF THE VIRGIN ISLANDS OF THE UNITED STATES & Z PROPERTY VI LLC. This Contract for the Purchase and Sale of Real Property (this “Agreement”) is made as of the date ofthe last signature affixed hereto rendering this Agreement legally binding (the “Effective Date”), by and between Z Property VI LLC (“Buyer”) and Government of the Virgin Islands ofthe United States acting through its Department of Property and Procurement (“Seller”). Buyer and Seller are each a “Party” and, collectively, are the “Parties” hereto. 1. THE PROPERTY: Pursuant to the terms and conditions hereinafter set forth, Seller agrees to sell to Buyer and Buyer agrees to purchase from Seller, the following real property (the “Property”): (a) Parcel No. 20-A Hospital Street, St. Croix US Virgin Islands, consisting of 2,000 U.S. square feet, more-or-less, as more fully described on Measure Brief 49329 Folio No. 472 dated July 24, 1997. Parcel ID#: 2-04904-1102-00 TOGETHER with all the tenements, hereditaments, and appurtenances thereunto belonging. 2. PURCHASE PRICE: The purchase price for the Property shall be TWO HUNDRED SIXTY THOUSAND DOLLARS AND ZERO CENTS (US $260,000.00) (the “Purchase Price’), which shall be paid as follows: 2.1 Deposit. Upon Buyer’s execution of this Agreement, the Buyer shall deliver an Earnest Money Deposit to the Seller in the amount ofTwenty-Six Thousand Dollars and Zero Cents ($26,000.00) (“Deposit”), which shall be held by Seller and applied to the Purchase Price in accordance with the terms of this Agreement. 2.2 C1osin Payment. The balance of the Purchase Price shall be paid to Seller at the Closing, less all applicable adjustments or credits provided for herein (the “Closing Payment”). 2.3 Escrow. Buyer shall deliver the balance of the Purchase Price to an Escrow Agent no less than ten (10) business days prior to the scheduled Closing and Buyer shall provide the Seller with proofof deposit within three (3) business days after completing the deposit with the Escrow Agent. Contract of Sale: Z Property VI, LLC & GVI Parcel No. 20-A Hospital Street Page 2 of8 3. CLOSING: The consummation of the transactions contemplated herein (the “Closing”) shall take place at either the Seller’s or Buyer’s attorney’s office, or such other place as is mutually agreed upon by Seller and Buyer on or before the Ninetieth (9Otl) day after the Effective Date (the “Closing Date”). Provided, however, that ifthe Closing does not take place on the Closing Date, this Agreement shall not terminate unless either Party provides written notice to the other of a decision to terminate; and provided further, if Closing shall not have occurred either Party may specify an outside date for Closing not less than thirty (30) business days after the date of such notice and time shall be ofthe essence as to such Closing Date. Possession shall be granted to Buyer at the Closing. 4. EXPENSES: Seller shall bear the costs of preparing the deed and securing the necessary attests , to the extent applicable. Real estate taxes, insurance, utility expenses, and rent shall be prorated to the date of closing between Seller and Buyer. All expenses of obtaining financing, new surveys, appraisals, inspections, title examinations, title insurance, and the recording fees of the deed and any purchase money mortgage shall be paid by the Buyer. Each party hereto shall pay its own attorney’s fees. 4.1 REAL ESTATE TAXES: Buyer will clear all real property taxes and sewer use fees due at the date of Closing before or at Closing and provide a Tax Clearance Letter to the Buyer. Buyer shall be entitled to a credit at Closing in the equivalent amount of the applicable property taxes and sewer fees paid. 5. TITLE: At the Closing, Seller will convey fee simple title to the Property to the Buyer by quitclaim deed, subject only to easements, covenants, restrictions, and rights of way of record that do not render the title unmarketable, any leases described herein, and all zoning, building, environmental, or other laws or regulations affecting the use or occupancy of the Property. 6. ENTRY, INSPECTION, COOPERATION, AND INDEMNIFICATION: During the period beginning on the Effective Date and for a period ofthirty (30) days following the Effective Date, Buyer and Buyer’s agents, employees, independent contractors, engineers, surveyors and other representatives (collectively “Agents”) shall have the right to enter the Property from time to time for the purpose of inspecting the Property, performing appraisals, testing water samples, making surveys of the Property, inspecting the improvements, fixtures included in this transaction, and performing any and all other reasonable activities relating to the purchase and/or inspection of the Property. Buyer and such Agents shall make entry only after providing reasonable notice to Seller andlor the Listing Agent. Buyer agrees that the entry permitted by this paragraph shall not cause injury or damage to the Property. Buyer agrees to indemnify and hold harmless Seller and Broker(s) against any injury or damage to the Property or personal injury to third parties caused by Buyer or its Agents. 7. DEFECTS: Should the Buyer discover any substantial defects during the Inspection Period, Buyer shall have thirty (30) days from the Effective Date to pursue one of two options: (1) Contract of Sale: Z Property VI, LLC & GVI Parcel No. 20-A Hospital Street Page 3 of8 terminate the Contract and receive a refund ofthe Deposit, ifapplicable; or (2) with the consent of the Seller elect to close with a reduction in the Purchase Price. A “substantial defect” is defined as one that materially impairs the occupancy of or the improvements on the land and requiring a cost of repair exceeding five percent (5%) of the Purchase Price. The foregoing notwithstanding, Buyer acknowledges that the Property is being sold and will be conveyed at Closing AS IS WHERE IS AND WITH ALL FAULTS AND DEFECTS. 8. DEFAULT BY BUYER: If(i) Seller is prepared to deliver to Buyer at Closing fee simple title to the Property via a quitclaim deed, and (ii) Buyer refuses to accept same and consummate the transactions contemplated hereby, then Seller, will have the right to terminate this Agreement by written notice, and to retain the Deposit, and, in such event, this Agreement shall terminate, no Party shall have any further rights, obligations or liabilities under, arising out ofor resulting from this Agreement, no Broker’s commission will be due. 9. DEFAULT BY SELLER: If the transaction contemplated hereby is not consummated by reason of Seller’s failure to deliver to Buyer fee simple title to the Property as set forth herein, or Seller’s refusal to perform Seller’s obligations hereunder, through no fault of Buyer, then Buyer shall have the right to terminate this Agreement, to receive a refund of the Deposit as then constituted and no Party shall have any further rights, obligations or liabilities under, arising out of or resulting from this Agreement. 10. CONDITIONS PRECEDENT TO BUYER’S OBLIGATION: The obligations of Buyer hereunder are subject to the satisfaction, at or prior to the Closing, of the following conditions: 10.1 Seller’ Closing Deliveries. At the Closing, the Seller shall deliver to Buyer: 10.2 a Quitclaim Deed; 10.3 any affidavit required pursuant to Section 1445 of the Internal Revenue Code of the United States; 10.4 keys to all locks on the Property; and 10.5 a combined Seller’s and Buyer’s closing statement. 11. DESTRUCTION OR DAMAGE TO PROPERTY: Risk of loss or damage by fire, flood or windstorm or otherwise resulting from exposure to the elements is on the Seller until the Closing. In the event of a casualty loss prior to Closing resulting in damage to the improvements in an amount less than FIVE PERCENT (5%) of the Purchase Price, the Purchase Price shall be adjusted to reflect the cost of such repair. In the event of casualty loss Contract of Sale: Z Property VI, LLC & GVI Parcel No. 20-A Hospital Street Page 4 of8 prior to Closing resulting in damage to the Property in excess of FIVE PERCENT (5%) of the Purchase Price, Seller may elect to terminate this Agreement, in which event (i) the Deposit as then constituted shall be refunded to Buyer and neither Party shall have any further rights, obligations or liabilities under, arising out of or resulting from this Agreement. 12. PERSONAL PROPERTY: The Property is being sold unfurnished, to the extent that the following fixtures and equipment are situated or existing on the Property as of the Effective Date, they shall be conveyed to Buyer at the Closing: built-in cabinets, and office fixtures, all lighting fixtures, electrical system(s), air conditioning system(s), other fixtures, including but not limited to the hurricane shutters, roll down & overhead doors, generator(s), plumbing (including water pumps and filters), ceiling fans and hot water heater(s). Buyer and Sellers shall execute an addendum enumerating any other personal property, ifany, to be conveyed to Buyer at the Closing on or before the FORTY- FIFTH (45T1) day after the Effective Date. 13. GOVERNING LAW: This Agreement, regardless of where it is signed, shall be deemed to have been made in the United States Virgin Islands and shall be governed by and interpreted in accordance with the laws of the United States Virgin Islands. 14. ASSIGNMENT: Buyer shall not have the right to assign any of Buyerts rights or obligations under this Agreement without the prior written consent of Seller which consent shall not be unreasonably withheld, except that Buyer may assign this Agreement to any affiliated person or entity, parent or subsidiary without Seller’ consent. However, any such assignment shall not relieve the Buyer of its obligations under this Agreement. 15. NOTICES: Whenever under this Agreement a provision is made for notice ofany kind, it shall be deemed sufficient service thereof if such notice is in writing addressed to the respective Party at the address shown below: FOR BUYERS: Z Property VI LLC 2163 Hospital Street Christiansted, St. Croix U.S. Virgin Islands 00851 Email: l)eteIz((izhospit1l ity .com FOR SELLER: Lisa M. Alejandro, via email at Iisa,aleiandro@dpp.vi.gov Vincent Richards, via email at vincent.richardsdpp.vi .ov 16. BINDING EFFECT: This Agreement shall be binding upon and shall inure to the benefit of the Parties and each of their respective heirs, representatives, successors and assigns. As used Contract of Sale: Z Property VI, LLC & GVI Parcel No. 20-A Hospital Street herein, words in the singular shall include the plural and the masculine shall include the feminine and neuter genders, as appropriate. 17. MODIFICATION OF THIS AGREEMENT: No extension, change, modification or amendment to or of this Agreement shall be in force or effect whatsoever except when in writing and signed by each of the Parties. 18. DUPLICATE COUNTERPARTS AND FACSIMILES: This Agreement may be signed in duplicate counterparts, each of which shall be deemed an original, but all of which, together, shall constitute but one instrument. Electronic transmitted copies of signatures shall be deemed to be originals for all purposes. 19. MISCELLANEOUS: This Agreement constitutes the entire agreement between the parties hereto and no representations, agreements, inducements or provisions other than those expressly set forth herein shall be binding. 20. INSPECTION PERIOD: As set forth in Section 6, Buyer shall have an open inspection period from the Effective Date for a period of THIRTY (30) days following the Effective Date (the “Inspection Period”) to conduct all inspections, including but not limited to, building/engineering inspections and surveys. In the event that Buyer is not satisfied with the results of any such inspections performed within the Inspection Period or Buyer discovers any substantial defects, then Buyer must inform Seller of Buyer’s intention to pursue one of the two (2) options set forth in Section 7 within five (5) days after the Inspection Period closes. 21. FINANCING: NONE. THIS IS A CASH SALE. 22. WEEKENDS AND HOLIDAYS: Notwithstanding anything herein to the contrary, if the last day to perform any act or give any notice under this Agreement is on a Saturday, Sunday or legal holiday recognized by the United States Virgin Islands Government, then the last day to perform such act or give such notice shall be automatically extended to be the close of the next business day. 23. ACCEPTANCE: This Offer must be accepted in writing by Seller or Seller’s authorized agent through the Commissioner of the Department of Property and Procurement and by Buyer or Buyer’s authorized agent by 5:00 pm AST, December 8, 2025. If the contract is not accepted by this date, then this Offer shall terminate. IF TI-ITS OFFER IS ACCEPTED, IT SHALL Contract of Sale: Z Property VL LLC & GVI Parcel No. 20-A Hospital Street Page 6 of8 BECOME A BINDING CONTRACT FOR THE SALE AND PURCHASE OF THE PROPERTY, AND SELLERS AGREE TO KEEP THE PROPERTY AND INVENTORY ADEQUATELY MAINTAINED AND INSURED U1’JTIL CLOSING. THE PROPERTY AND INVENTORY MUST BE IN SUBSTANTIALLY THE SAME CONDITION AT CLOSING AS IT IS ON THE DATE OF THIS OFFER, SUBJECT TO SECTION 7 AND SECTION 20 RECITED HEREIN. 24. SELLER’S APPROVAL: Notwithstanding anything to the contrary herein, the obligations of the Parties hereunder are contingent upon Seller obtaining the following approvals (collectively “Seller’s Approvals”): (a) Approval of this Agreement for Legal Sufficiency by the Attorney General of the Virgin Islands by execution of a copy hereof; (b) The approval of the Agreement by the Governor of the Virgin Islands by execution of a copy hereof; and (c) The approval of the Agreement by the Legislature of the Virgin Islands by execution of a copy hereof. 25. EFFECTIVE DATE: This Agreement shall become effective upon the date of execution of the Agreement by the Legislature of the U.S. Virgin Islands. 26. EXPIRATION OF OFFER: This offer shall be deemed revoked and the deposit, if any, shall be returned to Buyer, unless the offer is accepted by Seller through the signature of the Commissioner of DPP on or before December 12. 2025. [INTENTIONALLY LEFT BLANK - SIGNATURE PAGE FOLLOWSI Contract of Sale: Z Property VI, LLC & GVI Parcel No. 20-A Hospital Street APPROVED AS TO LEGAL SUFFICIENCY FOR SELLER: Gordon C. Rhea, Esq., Attorney General By: Date: _________ Assistant Attorney General APPROVED: By:_______________________________ Date: Albert Bryan Jr. Governor of the U.S. Virgin Islands APPROVED: By: ___________________________ Date: Milton E. Potter President of the 36th Legislature of the U.S. Virgin Islands BUYER’S EARNEST MONEY DEPOSIT PAY TO THE Government of the US Virgin Islands ORDER OF Twenty-Six Thousand and uui Z Property VI, LLC Government of the US Virgin Islands Date Type Reference 6/20/2025 Bill ESCROW DEPOSIT Checking (0008) 10% Escrow Deposit- 20-A Hospital St Christian NJ 26,000.00 Z Property VI, LLC 2183 Hospital St Christiansted, VI 00820 UNflED FIDEUTY BANK, F8B 6025 Anchor Way St Croix, VI 00820 71-718612863 7/9/2025 $ **26 000 00 II’009990I1’ ‘:8E3?63.: 7000 30008” 0 [ 7/9/2025 Original Amt. Balance Due Discount Payment 26,000.00 26,000.00 26,000.00 Check Amount 26,000.00 9990 IJANCO POPULAR 193 hem Office bate: 06/11/2025 tIne: 11:05 an teller 10:15 Session 0 101 Tr:s. I rrq. nicr;jtion I iic’unt Seuenc flccount ilunber ah ‘ient 200.00 eck Rcount Deposit ks1756 Cash Deposit $200.00 Check Deposit 26.609.97 total Deposit 28609.97 ThIs receipt is proof of your transactions. keep it to reconcile pour account statenent or for any clams. apply for your card or lean at the branch today. Telebanre Popular 797-724-3659 or 1-886-724-3659 Subject of credit approval. Service offered b Banco Foular of Puerto Rico. ‘202H4258 GOVERNMENT OF THE UNITED STATES VIRGIN ISLANDS Deposit Slip Dqosit No. 60010040 ERP Bank No. 010020 Deposit Date: 20 DPP island: STT Daily Summary of Collections ar Batch Sequence No.____________ DEPT No: 6001 Lee/dept 60010 Agency: Vui&atiou by Di4.ici d Trcuiwy RoooncilcntI Audit Soctio Audited By Date of Collection Date Collector’s Signature n0D L00140u’ :o 2 L0?14’ go7c,u’ 140 GVI’s ACCEPTANCE GOVERNMENT OF THE VIRGIN ISLANDS OF THE UNITED STATES Department of Property and Procurement 8201 Sub Base, 3rd Floo, St Thomas US. Virgin islands 00802 3274 Estate Richmond, Christiansted, US. Virgin islands 00820 St. Thomas: St. Croix: Main Office: (340) 774-0828 Main Office: (340) 773-1561 Fax: (340) 777-9587 www.dpp.vi.gov November 20, 2025 Via Email: peterz(zhospitaIity.com Peter Zielke Z Property VI, LLC 2163 Hospital Street Christiansted, St. Croix U.S. Virgin Islands 00820 Re: Sale of Parcel No. 20-A Hospital Street, Christiansted, St. Croix, U.S. Virgin Islands Dear Mr. Zielke: The Govemment of the Virgin Islands acting through its Department of Property and Procurement (“DPP”), reviewed Z Property VI LLC’s proposal to acquire Parcel No. 20-A Hospital Street, Christiansted, St. Croix, U.S. Virgin Islands and confirms the GVI’s intent to proceed with selling the property, an act which requires legislative approval under 31 V.I.C. § 205(c). Enclosed for your review and execution is a revised Contract of Sale, with a sale price of Two Hundred Sixty Thousand Dollars and Zero Cents ($260,000.00), subject to adjustment at Closing for the application of the initial deposit of Twenty-Six Thousand Dollars and Zero Cents ($26,000.00) and applicable sewer fees of Three Thousand Seven Hundred Forty-Two Dollars and Twelve Cents ($3,742.12). In addition to the business documents you have previously provided to DPP please supplement by providing the following to facilitate further processing of the enclosed: 1. The equivalent of a Corporate Resolution that identifies the signatory who can bind Z Property VI LLC. If the terms of the enclosed Agreement are acceptable, please sign and return to DPP along with the document listed above by the close of business on Monday, December 8, 2025. Should you have any questions or require further clarification, please do not hesitate to contact Mr. Vincent Richards, Assistant Commissioner at (340) 774-0828 ext. 4329 or via email at vincent.richards@dpp.vi.gov. Respectfully, Lisa - Jnoro a Commissioner BUYER’S OFFER Z Property VI LLC January 29, 2025 2163 Hospital Street Christiansted, USVI Peter Zielke, Owner Z Property VI, LLC peterz@zhospitality.com Commissioner Lisa M. Alejandro Virgin Islands Department of Property and Procurement 3274 Estate Richmond Christiansted, VI 00820 Subject: Authorization to Negotiate Property Purchase and Lease Agreements Dear Commissioner Alejandro, I am writing to formally authorize Mr. John Engerman of ANJ Holding, LLC to act on behalf of Z Property VI, LLC in matters related to the negotiation and potential acquisition or lease of properties. This authorization includes, but is not limited to, engaging in discussions, submitting offers, drafting or reviewing purchase and lease agreements, and liaising with your office or any other relevant parties to facilitate transactions involving any property of interest to Z Property VI, LLC. Mr. Engerman is empowered to represent the interests of Z Property VI, LLC fully in these matters, ensuring that all negotiations and agreements align with our strategic objectives and operational goals. We trust his expertise and professionalism in handling such transactions and request that he be accorded the same professional courtesies as any representative of Z Property VI, LLC. Should you require any further documentation or have questions regarding this authorization, please do not hesitate to contact my office at (340) 201- 5635 or peterz@zhospitaIity.com. Thank you for your cooperation, and we look forward to continuing our productive collaboration with your department. Sincerely, management solutions ANTHONY 0. THOMAs PREsIDENT/CEO P0. Box 191 ST. THoMAS. USVI 00804 ATJMANAGEMENTSOLUTIONS@GMAIL.COM . 678.570.6969 JANICE M. THOMAS VICE PREsIDENT November 15, 2024 Mrs. Lisa Alejandro Commissioner Department of Property and Procurement Subbase BLDG 1, Suite 4, 3rd Floor St. Thomas, USVI 00802 RE: Purchase Offer for 20A Hospital Street Dear Commissioner Alejandro, On behalf of Z Properties, I would like to extend an offer of $250,000.00 for the purchase of the property located at 20-A Hospital Street, Christiansted, St. Croix. We appreciate your openness to consider either a sale or a long-term lease of the property and welcome the opportunity to submit this offer for formal consideration. As you may know, the property is in a severely deteriorated state, and it will be necessary to demolish the existing structure to make way for future development. Given the costs and efforts associated with clearing and preparing the site, we believe this is a fair and reasonable offer, reflecting both the current condition and the significant investment required to redevelop the area. Z Properties is committed to revitalizing this location and enhancing its value to the community. We hope you will view this offer favorably, as it aligns with the mutual objective of elevating the Christiansted area. We look forward to your response and remain open to any additional information or steps needed to move forward with this purchase. Thank you for your consideration. Sincerely, Anthoy D. Thomas ATJ Ivfanagement Solutions Z Property VI LLC 14 November 2024 2163 Hospital Street Christiansted, USVI Peter Zielke, Owner Z Property VI, LLC peterz@zhospitality.com Commissioner Lisa M. Alejandro Virgin Islands Department of Property and Procurement 3274 Estate Richmond Christiansted, VI 00820 Subject Authorization to Negotiate Property Purchase and Lease Agreements Dear Commissioner Alejandro, I am writing to formally authorize Mr. Anthony Thomas of AJT Management Solutions to act on behalf of Z Property VI, LLC in matters related to the negotiation and potential acquisition or lease of properties. This authorization includes, but is not limited to, engaging in discussions, submitting offers, drafting or reviewing purchase and lease agreements, and liaising with your office or any other relevant parties to facilitate transactions involving any property of interest to Z Property VI, LLC. Mr. Thomas is empowered to represent the interests of Z Property VI, LLC fully in these matters, ensuring that all negotiations and agreements align with our strategic objectives and operational goals. We trust his expertise and professionalism in handling such transactions and request that he be accorded the same professional courtesies as any representative of Z Property VI, LLC. Should you require any further documentation or have questions regarding this authorization, please do not hesitate to contact my office at (340) 201- 5635 or peterz@zhospitality.com. Thank you for your cooperation, and we look forward to continuing our productive collaboration with your department. Sincerely, , Owner PROOF OF CVI OWNERSHIP ‘ December 19, .i.997 DEED OF GIFT No 5804/j997 THIS DEED OF GIFT, made this .Lday of D.4/ , 1997, by and between GWYNETHFRNCIS CIVIL, (“GRANTOR”), who’e mailing address is P.O. Box 2522, Christiansted, St. Croix, U.S. Virgin Islands 00822, and the GOVERNMENT OF THE UNITED STATES VIRGIN ISLANDS, (“GRANTEE”) WITNESSETH: WHEREAS, Grantor desires to benefit the people of the U.S. Virgin Islands, Grantor has determined to contribute to Grantee certain real property situate in St. Croix, U.S. Virgin Islands; NOW, THEREFORE, Grantor, for and in consideration of the foregoing recitals, and other good and valuable considerations, receipt of which is hereby acknowledged, does by these presents hereby give, remise, release and forever quitclaim to Grantee, all of Grantor’s right, title, interest, claim and demand in that certain real property situate in St. Croix, U.S. Virgin Islands, the same being more particularly known and described as; Lot No. 20-A Hospital Street Christiansted, St. Croix, Virgin Islands as per attached Measure Brief. TOGETHER WITH all Grantor’s interest in the — improvements, tenements, hereditaments and appurtenances thereunto belonging; SUBJECT to easements, restrictive covenants and: encumbrances of record. RESERVING, and excepting therefrom, however, tGRANTOR the full use, control, income, and possession of the described property for and during GRANTOR’S natural life. IN WITNESS WHEREOF, the GRANTOR has duly executed this instrument as of the date first above written. EW IN G PH FRANCIS CIyIL Z22 x / -s DEED OF GIFT Gwyneth Francis Civil ACXNOWLEDT TERRITORY OF THE VIRGIN ISLANDS DIVISION OF ST. CROIX On this /S”d’ay of 1.. , 1997, before me persona].ly came and appeared GWYNETJ’ FRANCIS CIVIL, to me known and known to me to be the person described herein and who executed the foregoing document, and she acknowledged to me that she signed the same freely and voluntarily for the use and purpose therein contained. WITNESS my hand and official seal. NOTARY PUBLIC Accepted By:L I / (_-€.c’ j/r7f7 Horab e Ro Shneider, M.D. j I Governor he Virgin Islands CETXPICATE OF VALUE IT IS HEREBY CERTIFIED that the value of the property in the foregoing instrument for recording and stamp purposes is nominal. For recording purposes the tax assessed value of the property does not exceed $41,464.00. GW K F CIS CIVIL, GRANTOR JO’7 DEED OF GIFT Gwyneth Francis Civil CERTIFICATE OF THE PUBLIC SURVEYOR IT IS HEREBY CERTIFIED that, according to the records in the Office of the Public Surveyor, the property described in the foregoing instrument has not undergone any change in respect to boundary and area. Croix. Office of the Public Surveyor, Christiansted, St. R ed and Entered In Recorders Book for the DisUJct 01 SL Croix, Vlrnli Islands of the U.SA P P3__ No. J ioperty Reglste II -Th DATED: JUL 2 1997 FEE: 108 This figure shows the general outline of the property as recorded in the records in the Office of the Public Surveyor. wiU Entered InRecorder’sBook tor me DIstd of SLCrok ajp Islands olths U.&Ad PhotLiiQ. Patle____ Nw2Q4jffi,and noted In I3eaI Pfopelty RoglsW Page srLl2g. MEASURE-BRIEF For th. Prop.rty No. .,trg’7 7z- F,4’2 In th. Town of on fli. Island of 5;. CroIx, V.1., U.S.A. p THIS IS TO CERTIFY that the abovementioned lot, according to the Public Surveyor’s Records, has the following boundaries: to the North feet towards to the South feet towards A€WJ J to the East feet towards - A f7#/ Yd’4’-j to the West feet towards The area is abou’t-’ Seere-Ft’ 3U 2 1997 Office of the Public Surveyor, Christiansted, St. CroL’c, , 19.— PLAN Qj/ALtJ / RELfL LYNCH I Fee: /O9 > 4z n o —I1-4 ‘is U) Gwyneth C. Francis-Civil of as made from the cerwtca of such death fiLed hi this office in accordance wftls 1.aw. SloNEoLoffame Benjanhin-MatthewoFp AL TITLE Director of Vital Recotds & Statistics il-hp flArE October 15, 2025 Christiansted, St çroi OFFICIAL USE ONLY -T C 00 -J I..) CC tJ I-,’ 00 OFFICE OF THE LIEUTENANT GOVERNOR OFFICE OF TKE TAX COLLECTOR / 1105 King Street * Christiansted, Virgin Islands 00820 * 340.773.6449 * Fax 340.719.5581 5049 Kongens Gade * Charlotte Amalie, Virgin Islands 00802 * 340.774.2991 * Fax 340.779.7825 STATUS REAL PROPERTY TAXES REQUESTED BY: ________________________________________ CONTACT NUMBER: St.Thomas/St.John (340.774.2991), St.Croix (340.773.6449) PROPERTY: 20-A HOSPITAL STREET PARCEL NUMBER: 2-04904-1102-00 PROPERTY OWNER: FRANCIS, GWYNETH C & OTHER TAX GROSS TAX EXEMPT NET TAX EWEF )THEF INTEREST PENALTY TOTAL DUE TOTAL TOTAL YEAR TAX DUE FEE FEES DUE DUE PAID BALANCE 2025 46.75 0.00 46.75 110.77 0.00 4.73 5.00 167.25 0.00 167.25 2024 46.75 0.00 46.75 110.77 0.00 23.63 5.00 186.15 0.00 186.15 2023 46.75 0.00 46.75 0.00 0.00 11.69 5.00 63.44 0.00 63.44 2022 46.75 0.00 46.75 0.00 0.00 11.69 5.00 63.44 0.00 63.44 2021 47.13 0.00 47.13 0.00 0.00 11.78 5.00 63.91 0.00 63.91 2020 61.83 0.00 61.83 0.00 0.00 15.46 5.00 82.29 0.00 82.29 2019 61.83 0.00 61.83 0.00 0.00 15.46 5.00 82.29 0.00 82.29 2018 61.83 0.00 61.83 0.00 0.00 15.46 5.00 82.29 0.00 82.29 2017 61.83 0.00 61.83 0.00 0.00 15.46 5.00 82.29 0.00 82.29 2016 61.83 0.00 61.83 0.00 0.00 15.46 5.00 82.29 0.00 82.29 2015 61.83 0.00 61.83 0.00 0.00 15.46 5.00 82.29 0.00 82.29 2014 62.32 0.00 62.32 0.00 0.00 15.58 5.00 82.90 0.00 82.90 2013 49.76 0.00 49.76 0.00 0.00 12.44 5.00 67.20 0.00 67.20 2012 112.50 0.00 112.50 50.00 0.00 40.63 5.00 208.13 0.00 208.13 2011 112.50 0.00 112.50 50.00 0.00 40.63 5.00 208.13 0.00 208.13 2010 112.50 0.00 112.50 50.00 0.00 40.63 5.00 208.13 0.00 208.13 2009 112.50 0.00 112.50 50.00 0.00 40.63 5.00 208.13 0.00 208.13 2008 112.50 0.00 112.50 50.00 0.00 40.63 5.00 208.13 0.00 208.13 2007 112.50 0.00 112.50 50.00 0.00 40.63 5.00 208.13 0.00 208.13 2006 112.50 0.00 112.50 50.00 0.00 40.63 5.00 208.13 0.00 208.13 PageNo. 1 OFFICE OF THE LIEUTENANT GOVERNOR 1 OFFICE OF THE TAX COLLECTOR 105 King Street * Christiansted, Virgin Islands 00820 * 340.773.6449 * Fax 340.719.5581 5049 Kongens Gade * Charlotte Amalie, Virgin Islands 00802 * 340.774.2991 * Fax 340.779.7825 STATUS REAL PROPERTY TAXES REQUESTED BY: _______________________________________ CONTACT NUMBER: St.Thomas/St.John (340.774.2991), St.Croix (340.773.6449) PROPERTY: 20-A HOSPITAL STREET PARCEL NUMBER: 2-04904-1102-00 PROPERTY OWNER: FRANCIS, GWYNETH C & OTHER TAX GROSS EXEMPT NET TAX SEWER )THEP INTEREST PENALTY TOTAL DUE TOTAL TOTAL YEAR TAX TAX DUE FEE FEES DUE DUE PAID BALANCE 2005 112.33 0.00 112.33 50.00 0.00 40.58 5.00 207.91 0.00 207.91 2004 112.33 0.00 112.33 50.00 0.00 40.58 5.00 207.91 0.00 207.91 2003 117.49 0.00 117.49 50.00 0.00 41.87 5.00 214.36 0.00 214.36 2002 122.65 0.00 122.65 50.00 0.00 43.16 5.00 220.81 0.00 220.81 2001 142.95 0.00 142.95 50.00 0.00 48.24 5.00 246.19 0.00 246.19 2000 148.24 0.00 148.24 50.00 0,00 0.00 0.00 198,24 198.24 0.00 1999 54.70 0.00 54,70 50.00 0.00 0.00 0.00 104.70 104.70 0.00 1998 513.15 513.15 0,00 50.00 0.00 0.00 0.00 50.00 50.00 0.00 1997 518.31 518.31 0.00 50.00 0.00 0.00 0.00 50.00 50.00 0.00 ITOTALS 3,346.841 1,031.461 2,315.38 11,021.541 0.001 683.14j 125.001 4,145.061 402.941 3,742.127 Penalty assessed to: 11/20/2025 Please remit payment to the GOVERNMENT OF THE U.S. VIRGIN ISLANDS. Accepted methods of payment: Cash, Credit Card, Cashier Check, or Money Order. Once paid, contact the Tax Collector to process your Tax Clearance To setup IPA, First payment due is S561.32 Interest accrues through date of payment GENERATED ON 11/20/2025 Page No. 2 CoRPO RATE DOCUMENTS [x] Business License Expires: 8/31/2026 [N/A] Tradename Registration Expires: N/A [x] Certificate of Good Standing Expires: 6/30/2026 [N/A] Insurance Expires: N/A [x] ResoLution Dated: 11/20/2025 [x] ArticLes/ EquivaLent [ ] Incorporation [x] Organization [ ] Limited Partnership/ Limited LiabiLity Partnership/ Limited LiabiLity Limited Partnership i CO4J:.. THE GOVERNMENT OF THE VIRGIN ISLANDS DEPARTMENT OF LICENSING AND CONSUMER AFFAIRS BUSINESS LICENSE KNOW ALL BY THIS PRESENT i’IRGIN %S That, in accordance with the applicable provisions of Title 3 Chapter 16 and Title 27 V.I.C. relating to the licensing of I businesses and occupations, and compliane ‘‘ 1’n made with the provisions of 10 V.LC. Sec. 41 relating tc the Civil Rights Act of the Virgin Islands, ti is herebjan4.. License No: “Types of License(s) iners Representative Coordinator 2-1 Licensee: Z PF Trade Name: z Mailing A_. TV VI LLd 2067 EAST ST CHRISTIANSTED ST. CROIX VI 00820 Business No: Physical Address 7 _____________ 27 A & B HOSPITAL ST CHRISTIANSTED - ST. CROIX VI 00820 1 - As provided by law, the authorized licens have the power to revoke or suspend any License i55L’ hereunder, upon finding, after notice and adequate hearing, that such revocation or suspension is in the pul interest; provided, that any persons aggrieved by any such decision of this office shall be entitled to a review of thel same by the Territorial Court upon appeal made within (30) days from the date of the decision; provided, further, that l decisions of this office hereunder shall be final except upon specific findings by the Court that the same was arrived at by fraud or illegal means. EZQZ2Z If a renewal is desired, the holder is responsible for making application for same without any notice from this office. It is the responsibility of the Licensee to notif’ the Department in writing within (30) days when a license is to be cancelled or placed in inactive status. Failure to do so will result in the assessment of penalties as authorized by law. Valid from 0810112025 until 08I31/2026 Printed on 09/1612025 St. Croix,V.I. 130.00 H. Nathalie lodge Issued at Fee ______________________________________________________________________ THIS LICENSE MUST BE PROMINENTLY DISPLAYED AT PLACE OF BUSINESS Commissioner, Department of Licensing and Consumer Affairs Business Entity No. DCO 105924 Government of The United States Virgin Islands -0- Office ofthe Lieutenant Governor Division ofCorporations & Trademarks CERTIFICATE OF GOOD STANDING To Whom These Presents Shall Come: I, the undersigned Lieutenant Governor the United States Virgin Islands, do hereby certify that Z PROPERTY VI LLC has filed in the Office of the Lieutenant Governor the requisite annual reports and statements as required by the Virgin Islands Code, and the Rules and Regulations of this Office. In addition, the aforementioned entity has paid all applicable taxes and fees to date, and has a legal existence not having been cancelled or dissolved as far as the records of my office show. Wherefore, the aforementioned entity is duly formed under the laws of the Virgin Islands of the United States, is duly authorized to transact business, and, is hereby declared to be in good standing as witnessed by my seal below. This certificate is valid through June 30th, 2026. Entity Type: Domestic Limited Liability Company Entity Status: In Good Standing Registration Date: 12/03/2019 Jurisdiction: United States Virgin Islands, United States Witness my hand and the seal of the Government of the United States Virgin Islands, on this 29th day of July, 2025. wt_ Tregenza A. Roach Lieutenant Governor United States Virgin Islands ARTICLES OF ORGANIZATION OF Z PROPERTY VI LLC, A LIMITED LIABILITY COMPANY 1, the undersigned natural person of the age of eighteen (18) years or more, acting as Organizer of a limited liability company (Z Property VI LLC) under the Uniform Limited Liability Company Act, Chapter 15, Title 13, Virgin Islands Code (“Uniform Limited Liability Company Act”). do hereby adopt the following Articles of Organization for such limited liability company: 1.1 Name. The name of this limited liability company is Z Property VI LLC. referred to in these Articles of Organization as the “Company.’ 1.2 Initial Designated Office. The physical and mailing address of the initial designated office is: 1114 King Street, 2 Floor Christiansted VI 00820 1.3 Initial Agent for Service of Process. address for the initial agent for service of process is: Groner Law. PC 1114 King Street, ,rd Floor Christiansted VI 00820 The name and physical 1.4 Name and Address of Organizer. The name and physical address of the organizer of the Company is: Gerald T. Groner. Esq. 1114 King Street, 3 Floor Christiansted VI 00820 •1 Articles of Organization of: Z Property VI LLC k ARTICLE 2 PURPOSE I The purpose for which the Company is organized is to engage in any and all lawful business for which a limited liability company may be organized under the Uniform Limited Liability Company Act and other laws of the United States Virgin Islands. 4 The Company shall be a term company and the term of the Company shall be ninety-nine (99) years from the date of the filing of these Articles of Organization. The Company will be managed by the member. 5.1 No Member Liability. No member of the Company shall be liable for the debts and obligations of the Company under the provisions of Uniform Liability Company Act, Chapter 15. Title 13 Section 1303(c) Virgin Islands Code or otherwise. 5.2 Survival of Limitation. No amendment or repeal of this section affects any liability or alleged liability of any member for any acts, omissions, or conduct that occurred prior to the amendment or repeal. Articles of Organization of: Z ?roperty VI LLC ARTICLE6 CAPITAL The Company shall begin business with capital in the amount of One Thousand and 001100 Dollars ($1,000). ARTICLE 7 SEVERABILITY If any phrase, clause. sentence, paragraph, or provision of these Articles of Organization is held to be void or illegal, then it shall not impair or affect the balance of these Articles, and the undersigned Organizer of the Company does hereby declare that he would have signed and executed the balance of these Articles without such void or illegal provisions. .: ART1CLE8- .. AMENTS The Company reserves the right to amend, alter or repeal any of he provisions of these Articles of Organization and to add other provisions authorized by the laws of the United States Virgin Islands at the time in force and in the manner and at the time prescribed by law. IN WITNESS WHEREOF, the undersigned person has hereunto set his hand as Organizer of the Company this 3rd day December. 2019. / Gerald T. Groner, Esq. ______ Organizer Articles ofOrganization of Z Property vi LLC ACKNOWLEDGMENT TERRITORy OFTIW VIRGIN JSLANDS DISTRiCT OF ST. CROIX ) ss. The Iöregoing instrument was acknowleducd bctàre me this 3rd day of December 2019 by Gerald ‘F. Groner Esq. ( Notary,pUjj No(arv No. Commission Expires: YPU8LI JERRI FARRA,’rE Commiss1o0 Exp: October 9 2023 NP-253_J 9 I RESOLUTION AND CONSENT OF MEMBER OF Z PROPERTY VI LLC Peter Zielke (the “Member”) being the sole member of Z Property VI LLC a U.S. Virgin Islands limited liability company (the “Company”). hereby consents to the following resolutions and hereby confirms that the following resolutions are still in effect as of the date given below. and that there have been no modifications, amendments or revocations thereof and that the same were adopted in accordance with and fully comply with the Articles of Organization and Operating Agreement of the Company: RESOLVED, the Member of the Company is hereby authorized to execute the Contract for Purchase and Sale of Real Property between the Company and the Government of the Virgin Islands of the United States acting through its Department of Property and Procurement (the “Contract”) with regard to the following described property (“Property”): Parcel No. 20-A Hospital Street, St. Croix, U.S. Virgin Islands consisting of 2,000 U.S. Square feet, more or less, as more fully described on Measure Brief 49329 Folio No. 472 dated July 24, 1997 (Parcel ID No. 2-04904-1102-00) and to purchase the Property in accordance with the Contract and to execute any and all other documents or papers of whatever kind necessary to fulfill accomplish the forgoing including, but not limited to, the negotiation and execution of the Contract, any Amendment to the Contract. Extension of the Contract, Closing Statement etc.; and it is further RESOLVED, that the Member of the Company is hereby authorized to and directed to do and perform all such acts and things which may be required and to take all such steps as may be necessary or advisable and convenient and proper to carry out the intent of the foregoing Resolution and fully perform the provisions outlined above; and it is further RESOLVED that any previous action taken by the Member in connection with the Contract and the Property, including the execution of the Contract on June 20, 2025 are hereby ratified and adopted as a binding acts of the Company.; and it is further RESOLVED, all documents which are executed by the Member of the Company shall be binding and legal obligations of the Company; and the execution of any such document by the Member ofthe Company on behalfofthe Company shall be conclusive evidence that such Member deemed the provisions of such document to be in the best iLiterest of the Company Facsimile and digitally transmitted copies of this instrument shall be deemed effective. Dated this 20th day of November, 2025 Member APPRAISALS KENN HOBSON & ASSOCIATES Real Estate Brokerage and Appraisal Residential and CornrnercialAppraisals/CRRA, CCRA APPRAISAL REPORT Plot No. 20-A Hospital Street Christiansted St. Croix, Virgin Islands (as of March 12, 2025) for Government of the Virgin Islands Department of Property & Procurement No. I Subbase St. Thomas, VI P.O. BOX 10764 • ST. THOMAS • U.S. VIRGIN ISLANDS 00801 • TEL. — (340) 774-2749 March 24, 2025 KENN HOBSON & ASSOCIATES Real Estate Brokerage andAppraisal Residential and Commercial Appraisals/ CRRA, CCRA Honorable Lisa Alejandro Commissioner Department of Property & Procurement No. 1 Subbase St. Thomas, VI 00802 Re: Plot No. 20-A Hospital Street Christiansied St. Croix, VI Dear Commissioner Alejandro: Pursuant to your request, I have conducted the necessary data and made certain analyses that have possible value of the above-referenced parcel. required investigations, gathered the enabled me to form an opinion of the Based on an inspection of the property and the investigations and analyses taken, I have formed the opinion that, subject to the assumptions and limited conditions set forth in the report, the estimated net market value of the property is Eighty-Three Thousand Six Hundred and 00/100 Dollars ($83,600.00), as of March 12, 2025. The narrative appraisal report that follows sets forth the identification of the property, the assumptions and limiting conditions, pertinent facts about the subject property, comparable data, the results of the investigations and analyses, and the reasoning leading to the conclusion. Appraiser License #038 8058 EAST CARET BAY • ST. THOMAS, U.S. VIRGIN ISLANDS 00802 • TEL. (340) 774-2749 Plot No. 20-A Hospital Street Christiansted St. Croix, Virgin Islands SALIENT FACTS Purpose of the Appraisal: To form an opinion of the market value, in terms of cash, of the real property commonly known as Plot No. 20-A Hospital Street, Christiansted, St. Croix, Virgin Islands Property Location: Plot No. 20-A Hospital Street Christiansted, St. Croix, Virgin Islands Highest & Best Use: Business Zoning: R-4 Residential - Medium density Land Size: 11,000± square feet Date Valuation: March 12, 2025 Estimated Market Value: $83,600 8058 EAST CARET BAY • ST. THOMAS, U.S. VIRGIN ISLANDS 00802 . TEL. (340) 774-2749 TABLE OF CONTENTS 1. Scope of the Investigation .1 2. Purpose of the Appraisal 2 3. Effective Date of Appraisal 2 4. Property Rights Appraised 2 5. Market Value 2 6. Use of the Appraisal 3 7. Property Description 4 8. Neighborhood 4 9. Territorial Data 5 10. Site 5 11. Improvement 5 12. Zoning 5 13. R-4 Residential - Medium density 5 14. HighestandBestUse 7 15. Value Methodology 8 16. Sales Comparison Approach 9 17. IncomeApproach 9 18. Cost Approach 9 19. Correlation & Conclusion 10 Assumptions and Limiting Conditions 11 Appraiser’s Certification 13 Business License 14 Qualifications 15 Photos 16 8058 EAST CARET BAY • ST. THOMAS, U.S. VIRGIN ISLANDS 00802 • TEL. (340) 774-2749 Plot No. 20-A Hospital Street Christiansted St. Croix, Virgin Islands 1. Scope of the Investigation An appraisal is a written opinion of value based upon a thorough investigation of all legally proper factors and elements that affect the value of an adequately described parcel of property as of a specific date. It is therefore, fundamental to recognize that an appraisal report is an estimate properly supported by actual fact. As a result, a number of independent investigations and analyses were undertaken to prepare a report in accordance with the intended use, and the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation. Hence the following were utilized in regard to this subject property: • In developing the approaches to value, the real estate transaction records were provided by the Multiple Listing Service (MLS). Contractors, realtors, government offices, and persons with knowledge of the marketplace on St. Croix, Virgin Islands, supplied other data. • The investigation commenced on March 12, 2025, the date of valuation. The geographic area of the investigation was limited to the island of St. Croix, Virgin Islands. • On March 12, 2025, the Appraiser visited Plot No. 20-A Hospftal Street, Christiansted, St. Croix, Virgin Islands (hereinafter also referred to as “the Subject”). • Photos were taken of the Subject at that time. The area was overrun with vegetation and garbage, therefore the Appraiser was unable to take measurements of the Subject. The site is proported to be 11,500 square feet. 8058 EAST CARET BAY • ST. THOMAS, U.S. VIRGIN ISLANDS 00802 • TEL. (340) 774-2749 Plot No. 20-A Hospital Street Christiansted St. Croix, Virgin Islands 2. Purpose of the Appraisal The object of this appraisal is to estimate the market value of the real property known as Plot No. 20-A Hospital Street, Christiansted, St. Croix, Virgin Islands. 3. Effective Date of Appraisal The estimate of market value is applicable to the market condition that existed on the date of the last inspection, March 12, 2025. Appraiser Kenn Hobson took photos of the Subject on that date. 4. Property Rights Appraised The property rights appraised are the fee simple estate, subject to zoning, easements of record, and the depreciated cost of improvement. 5. Market Value Market value is the major focus of most real estate appraisal assignments. Both economic and legal definitions of market value have been developed and refined. A current definition agreed upon by agencies that regulate federal financial institutions in the United States of America is: The amount in cash, or on terms reasonably equivalent to cash, for which in all probability the property would be sold by a knowledgeable owner willing but not obligated to sell to a knowledgeable purchaser who desires but is not obligated to buy. In ascertaining that figure, consideration should be given to all matters that might be brought forward and reasonably be given substantial weight in bargaining by persons of ordinary prudence, but no consideration whatever should be given to matters not affecting market value. Implicit in this definition is the consummation of a sale as of a specified date and the passing of 8058 EAST CARET BAY • ST. THOMAS, U.S. VIRGIN ISLANDS 00802 • TEL. (340) 774-2749 Plot No. 20-A Hospital Street Christiansted St. Croix, Virgin Islands title from seller to buyer under conditions whereby: 1. Buyer and seller are typically motivated.; 2. Both parties are well informed or well advised and acting on what they consider their best interests; 3. A reasonable time is allowed for exposure in the open market; 4. Payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; and 5. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. (Uniform Appraisal Standard for Federal Land Acquisition, 1992). 6. Use of the Appraisal The use of this appraisal is to assist the Government of the Virgin Islands and the Department of Property and Procurement in determining the just compensation of Plot 20-A Hospital Street, Christiansted, St. Croix, Virgin Islands. The report may also be used by the Department of Finance. Other intended users are the Lieutenant Governor’s Office and the Bureau of Internal Revenue. This report may not be used or relied upon by any other party. Any other party who uses or relies upon any information in this report, without the Appraiser’s written consent does so at their own risk. 8058 EAST CARET BAY • ST. THOMAS, U.S. VIRGIN ISLANDS 00802 • TEL. (340) 774-2749 Plot No. 20-A Hospital Street Christiansted St. Croix, Virgin Islands 7. Property Description The site is approximately 11,000 square feet with a single one-story structure, that is currently vacant. The site is overrun with bushes and garbage and the structure seem to be 40’ x 30’ or 1,200 square feet. 8. Neighborhood There are four forces affecting property value. They are economic, social, governmental and environmental. These forces affect properties within a specific area of the subject property and therefore affect the value of the subject property itself. The area of influence is known as the neighborhood or district. When discussing neighborhoods, the appraiser may interchange the two terms. However, the neighborhood is defined as an area having a group of complimentary land uses whereas, a district is a type of neighborhood is a characterized by homogeneous land uses. To identify the boundaries of a specific neighborhood or district, the appraiser begins with the subject property, and working outward measures the effect of the four forces as they affect the subject. Where the four forces no longer influence the subject, the appraiser draws a boundary line. On an island, the size of St. Croix, Virgin Islands, it is reasonable to believe that the four forces affecting the value would extend outward to the water’s edge. As theoretically correct as this may be, common sense suggests a smaller area would exert a greater social, economic, governmental and environmental influence on the subject property. The Subject is known as 20-A Hospital Street, Christiansted, St. Croix, VI. It is just on the outskirts of Christiansted going east. It fronts 8058 EAST CARET BAY • ST. THOMAS, U.S. VIRGIN ISLANDS 00802 • TEL. (340) 774-2749 Plot No. 20-A Hospital Street Oh ristiansted St. Croix, Virgin Islands the main road leading to Gallows Bay and the Canegata Ball Park. 9. Territorial Data It is assumed that the reader of this report is familiar with the social, economic and governmental composition of the Government of the U.S. Virgin Islands. 10. Site The site is known as Plot 20-A Hospital Street, consisting of an area of 11,000 square foot which is owned by Gwyneth C. Frances. From a visual topographic inspection, the Subject is flat. 11. Improvement The site is improved with a single masonry structure that is vacant and appears to be have been vacant for sometime. The site is overrun with vegetation and garbage. 12. Zoning The Subject is zoned R-4 (Residential - Medium density) according to the survey. 13. R-4 Residential - Medium density Substantial areas of the Virgin Islands, particularly in the built-up urban sections, have been zoned for a theoretical minimum lot area of 3,000 square feet for residential purposes. In these areas the size of lots varies from 1,000 square feet to over 8,000 square feet. The lot area requirements have often been violated for residence purposes by exceptions; further intrusions have permitted nonresidential uses. The result has been a mixture of nonrelated uses in what was supposed to be residential areas of modest homes. Because the pattern of the 1,000 to over 8,000 square foot lots has been established, it is retained but kept for residential purposes. The R-4 Residential 8058 EAST CARET BAY • ST. THOMAS, U.S. VIRGIN ISLANDS 00802 • TEL. (340) 774-2749 Plot No. 20-A Hospital Street Christiansted St. Croix, Virgin Islands zones will limit the density to one hundred twenty (120) persons per acre. This makes it possible to develop areas for multiple family use within a range of low to medium densities. Areas which are no longer suitable for residences alone because of the intrusion of incongruous uses are suggested for different types of zoning. Uses permitted - Land and water areas shall be used and buildings or structures shall be erected, altered, enlarged or used only for one or more of the uses indicated in the R-4 section of the TABLE OF PERMITTED USES, subject to such standards as may be referred to in that section and in the Special Requirements section of said Table and in the section on Required Conditions for Permitted Uses. Permitted accesso,y uses — Customary accessory uses are permitted. Required parking and loading areas — Off- street parking shall be provided in accordance with the provisions of section 230 of this subchapter. Limitations on persons per acre - The maximum number of persons per acre for residential structures shall not exceed one hundred twenty (120) persons at the time of construction. Permitted lot occupancy - All principal structures shall occupy not more than a total of fifty (50) percent of the area of the zoning lot. Required lot area - Eve,y parcel of property to be utilized for residential purposes in the R-4 District shall have a minimum lot area of three thousand (3,000) square feet. 8058 EAST CARET BAY • ST. THOMAS, U.S. VIRGIN ISLANDS 00802 • TEL. (340) 774-2749 Plot No. 20-A Hospital Street Christiansted St. Croix, Virgin Islands Lot width - Every lot shall have a minimum lot width at the street line of not less than forty (40) feet. Maximum height limit - No residential structure shall exceed a height of three (3) stories. (Virgin Islands Zoning and Subdivision Law, Title 29, 229 - Development Provisions, Chapter 3) 14. Highest and Best Use The appraisal theory of “highest and best use” suggests that land is valued as if vacant and available. Highest and best use may be defined as “the highest and best use of land which, at the time of appraisal, is legal, and which will yield the highest net return in the reasonable future.” The four elements of highest and best use implicit in the above definition are: 1. Possible use. What uses of the site are physically possible? 2. Permissible legal use. What uses are permitted by zoning and deed restrictions? 3. Feasible use. Which possible and permissible uses will produce a net return to the owner? 4. Maximum Productiveness. Among the feasible uses, which will produce the highest net return to the land? It is this appraiser’s opinion that consistent with the physical possibility and the permissibility of the zoning and deed restrictions to allow a net return to both the owner and the land, that the 8058 EAST CARET BAY • ST. THOMAS, U.S. VIRGIN ISLANDS 00802 • TEL. (340) 774-2749 Plot No. 20-A Hospital Street Christiansted St. Croix, Virgin Islands highest and best use will be commercial or business offices. 15. Value Methodology Three approaches to value are available to the appraiser. The Cost Approach estimates the replacement value of the improvements then deducts the estimated accrued depreciation. Added to the remainder is the estimated value of the land. The total of these two is the estimate of value. Appraisal theory says that this approach generally will indicate the upper limit of value since one should not pay more for a property than they can pay to reproduce it within a reasonable period of time. Comparative Market Approach analyzes sales of comparable properties making adjustments for minor differences to arrive at an estimated value. For this approach to have validity, there must be a market of sufficient size for the appraiser to examine. In addition, the adjustments that are utilized to adjust for the differences normally found in the market must not be excessive if this approach is to have any validity. The Income Approach is the third approach utilized by the appraiser. When valuing income producing properties, it is the preferred approach. The appraiser estimates the current market income, then deducts an estimated vacancy and collection loss to arrive at effective gross income. From this the estimated operating expenses are deducted arriving at Net Operating Income (NOl). The NOl is capitalized using a rate developed from the market to arrive at an estimated value. Finally, the appraiser analyzes the results of the three approaches weighing their relative merits and arrives at a final estimate of value of the subject property. 8058 EAST CARET BAY • ST. THOMAS, U.S. VIRGIN ISLANDS 00802 • TEL. (340) 774-2749 Plot No. 20-A Hospital Street Christiansted St. Croix, Virgin Islands 16. Sales Comparison Approach This approach compares the subject property to similar properties that have recently sold. During the course of the investigation, no sales of properties deemed comparable to the Subject were discovered. In the absence of market data, it is not possible to employ this approach. To do so would be misleading and inappropriate. This approach, therefore, was not utilized to estimate the value of the Subject. 17. Income Approach This approach considers the present worth of the potential future benefits of a property. It estimates the current value of a property on the basis of its present and future income, which a fully informed person warranted in assuming the property will produce during its remaining economic life. Although income alone is not the sole factor used by the appraiser in arriving at their estimated value, it is a major factor in the approach. Consideration must be given, however, to remaining economic life, not only of the building, but of other items within the property in estimating the value. The Subject is not an income-producing property and, therefore warrants the application of the Income Approach. In this approach, consideration must be given to the remaining economic life, not only of the building, but of the other items within the property in estimating value. The principle of anticipation is fundamental. 18. Cost Approach This approach is used only to arrive at a depreciated value of the improvement. Replacement cost is the construction cost new less the accumulated depreciation. The replacement cost calculation is as follows: 8058 EAST CARET BAY • ST. THOMAS, U.S. VIRGIN ISLANDS 00802 • TEL. (340) 774-2749 Plot No. 20-A Hospital Street Christiansted St. Croix, Virgin Islands Replacement Cost (New) Structure (Apparent size is 40’ x 30’.) 1,200± sq. ft. x $280/sq. ft. $336,000 Less: Depreciation (90%) $302,400 Depreciated Value $33,600 Plus: Land $50,000 Total Value $83,600 Rounded to $83,600 19. Correlation & Conclusion Both the Sale Comparison Approach and the Income Approach were not used to valuate the Subject. There were no sales of properties that were found to match the qualities of the Subject that would warrant the use of the Sale Comparison Approach. The Cost Approach was therefore used to estimate the value of the Subject. NB: The Appraiser was never asked for, nor is an opinion given as to the structural integrity of the structure. That analysis can be only done by specific engineering techniques.. 8058 EAST CARET BAY • ST. THOMAS, U.S. VIRGIN ISLANDS 00802 • TEL. (340) 774-2749 ASSUMPTIONS AND LIMITING CONDITIONS 1. That the date of value to which the opinions expressed in this report applies is set forth in the letter of transmittal. The appraiser assumes no responsibility for economic or physical factors occurring at some later date which may affect the opinions herein stated. 2. That no opinion is intended to be expressed for legal matters or that would require specialized investigation or knowledge beyond that ordinarily employed by real estate appraisers, although such matters may be discussed in the report. 3. That no opinion as to title is rendered. Data on ownership and the legal description were obtained from sources generally considered reliable. Title is assumed to be marketable and free and clear of all liens and encumbrances, easements, and restrictions except those specifically discussed in the report. The property is appraised assuming it to be under responsible ownership and competent management and available for its highest and best use. 4. That no engineering survey has been made, nor is responsibility assumed for corrections a survey might reveal. Except as specifically stated, data relative to size and area were taken from sources considered reliable, and no encroachment of real property improvements is assumed to exist. Valuation is made without regard to questions of boundary and the property would be legal, located within the limits of the property and have the approval of all necessary authorities. 5. That maps, plats, and exhibits included herein are for illustration only, as an aid in visualizing matters discussed within the report. They should not be considered as surveys or relied upon for any other purpose. 6. That no opinion is expressed as to the value of subsurface oil, gas, or mineral rights and that the property is not subject at surface entry for the exploration or removal or such materials except as is expressly stated. 7. That the projections included in this report are utilized to assist in the valuation process and are based on current market conditions, anticipated short term supply and demand factors, and a continued stable economy. Therefore, the projections are subject to changes in future conditions that cannot be accurately predicted by the appraiser and could affect the future income or value projections. 8. That testimony or attendance in court or at any other hearing is not required by reason of rendering this appraisal unless such arrangements have been previously made therefore. 9. That, because no title report was made available to the appraiser, he assumes no responsibility for such items of record not disclosed by his investigation. 8058 EAST CARET BAY • ST. THOMAS, U.S. VIRGIN ISLANDS 00802 • TEL. (340) 774-2749 ASSUMPTIONS AND LIMITING CONDITIONS 10. The conclusion presented in this report are not to be constructed as pragmatic fact, rather they are to be viewed as the most indicative estimate(s) of value that could be derived from the available information. 11. Any distribution of the valuation in the report between land and improvements applies only under the existing program if utilization. The separate valuations for land and building must not be used in conjunction with any other appraisal and are invalid if so used. 12. Neither all, nor any part of the content of the report, or copy thereof (including conclusions as to the property value, the identity of the appraiser, professional designations, reference to any professional organizations, or the firm with which the appraiser is connected), shall be used by anyone but the client specified in the report, without the previous written consent of the appraiser; nor shall it be conveyed by anyone to the public through advertising, public relations, news, sales, or other media, without the written consent and approval of the appraiser. 13. The value estimate in this report is based on the assumption that the property is not negatively affected by the existence of hazardous substances or detrimental environmental conditions. The appraiser is not an expert in the identification of hazardous substances or detrimental environmental conditions. The appraiser’s routine inspection of and inquiries about the subject property did not develop any information that indicated any apparent significant hazardous substances or detrimental environmental conditions which would affect the property negatively. It is possible that tests and inspections made by a qualified hazardous substance and environmental expert would reveal the existence of hazardous materials and environmental conditions on or around the property that would negatively affect its value. 14. The appraiser assumes that there are no hidden or unapparent conditions of the property, subsoil, or structures, or any archaeological finds, which would render it more or less valuable. The appraiser assumes no responsibility for such conditions, or for engineering which might be required to discover such factors. 15. Where the value of the various components of the property are shown separately, the value of each is segregated only as an aid to better estimating the value of the whole; the independent value of the various components may, or may not, be the market value of the component. 8058 EAST CARET BAY • ST. THOMAS, U.S. VIRGIN ISLANDS 00802 • TEL. (340) 774-2749 APPRAISER’S CERTIFICATION I certify to the best of my knowledge and belief that: The statements of facts contained in this letter are true and correct. The reported analyses, opinions and conclusions are limited only by reported assumptions and limiting conditions and are my personal, unbiased, professional analyses, opinions, and conclusions. I have no present or prospective interest in the property that is the subject of this letter, and I have no personal interest of bias with respect to the parties involved. My compensation is not contingent on an action or event resulting from the analyses, opinions, or conclusions that were developed. I have made a personal inspection of the property that is the subject of this report. No person provided significant professional assistance to the person signing this report. March 20, 2025 Date Hobson 8058 EAST CARET BAY • ST. THOMAS, U.S. VIRGIN ISLANDS 00802 • TEL. (340) 774-2749 Valid from Primed on Issued at Fee 1211612024 untIl 1213112025 1211612024 St. Thomas,V.I. 525.00 BUSINESS LICENSE THE GOVERNMENT OF TUE VIRGIN ISLANDS ‘ DEPARTMENT OF LICENSING AND CONSUMERAFFAIRS PROFESSIONAL LICENSE KNOWALL BY TifiS PRESENT ofTh1e3Chapte-’’”’ e27V.I.C. sions of 10 V. ime: Mailing Address P.O. BOX 10764 f CHARLOTTE AMALl ST. THOMAS VI 00801 Business to the licensing c 4lrelatingt. 11 ‘MMMELSKAFT GADE ST. THOMAS ST. THOMAS Vi 00802 fUcenseNo:l57 AS provided by law. ereimder. ii”.. iterest. I arrived at by fraud or illegal means. II 2O25 I If a renewal is desired, the holder is ieonsible for making application for same without any notice from this office. It 5 the responsibility of the Licensee to notif’ the Department in writing within (30) days, when a licqnse is to be :ancellecfor placed in inactive status. Failure to do so will result in the assessment of penalties as authorized by law. H. Nathalie lodge Commissioner, Department of Licensing and Consumer Affairs TifiS LICENSE MUST BE PROMINENTLY DISPLAYED AT PLACE OF BUSINESS 8058 EAST CARET BAY • ST. THOMAS, U.S. VIRGIN ISLANDS 00802 • TEL. (340) 774-2749 QUALIFICATIONS Kenn Hobson P.O. Box 10764 St. Thomas, VI 00801 1986 Masters of Public Administration, University of the Virgin Islands; St. Thomas, U.S. Virgin Islands 1974 Bachelor of Arts — Business Administration, University of the Virgin Islands; St. Thomas, U.S. Virgin Islands 1990 National College of Appraisal 1992 National Association of Independent Fee Appraisers Courses: • Principles of Residential Real Estate Appraising • Commercial Appraising • Principles of Residential Appraisals • Introduction of Income Property Appraising; • Professional Standards of Practice • Financial Analysis of Income Properties • Report Writing of Residential Real Estate • Appraising Concepts, Terminology, and Technique: An Overview of the Appraisal Process Condemnation Appraisal • Capitalization Theory • Federal Land Acquisition Licenses U.S. Virgin Islands Real Estate Broker U. S. Virgin Islands Certified General Real Estate Appraiser Employment Personal Data Education 1992 — Present 2008—2012 2007 — 2008 1999—2007 1988—1991 1987 — 1999 1978—1987 Kenn Hobson & Associates Virgin Islands Port Authority, Executive Director Virgin Islands Port Authority, Deputy Executive Director Virgin Islands Port Authority, Director of Property Management Crown Real Estate Virgin Islands Port Authority, Property Manager Virgin Islands Water & Power Authority 8058 EAST CARET BAY • ST. THOMAS, U.S. VIRGIN ISLANDS 00802 • TEL. (340) 774-2749 Plot No. 20-A Hospital Street Christiansted St. Croix, Virgin Islands PHOTOS 8058 EAST CARET BAY • ST. THOMAS, U.S. VIRGIN ISLANDS 00802 • TEL. (340) 774-2749 20 A Hospital St 20 A Hospital St Christiansted, VI 00820 Effective Date of Valuation Prepared For Client File Number February 24. 2025 Mr Vincent Richards N/A Deputy Commissioner VI. Department of Property & Procurement Date of the Report Internal File Number March 24, 2025 N/A Report Type Appraisal Report PREPARED BY: EDWARDS Valuation Services 1%) I Transmittal Letter 3170 NE Carnegie Dr, Ste 400 E DNV’A R D S Lees Summit, MO 64064 - . P: 816-795-8250 Vaiuation Services March 24, 2025 Mr. Vincent Richards Deputy Commissioner V.1. Department of Property & Procurement 8201 Subbase Suite #4 Charlotte Amalie, VI 00802 RE: Appraisal Report for the property located at 20 A Hospital St, Christiansted, VI 00820 Dear Mr. Richards: In accordance with your authorization, we have conducted the investigation necessary to form an opinion of value in the above captioned subject property. The appraisal report that follows sets forth the identification of the property, the assumptions and limiting conditions, pertinent facts about the area and the subject property, comparable market data, the results of the investigation, and the reasoning leading to the conclusions set forth. The report that follows is considered to be a summary of our analysis and conclusions. Supporting documentation concerning the data, reasoning, and analyses is retained in our file. The depth of discussion contained in this report is specific to the needs of the client and for the intended use stated in the report. We are not responsible for unauthorized use of this report. Please take special note of any assumptions used in this assignment as they may have affected the results of the assignment. Per conversations with the client and the intended user of the report, the scope of work in this report is intended to be consistent with industry standards and has been performed so as to develop a credible report. This letter is invalid as an opinion of value if detached from the report, which contains the text, exhibits, and Addenda. o The subject improvements have been in extreme disrepair for a number of years. Even though we are not health and safety building inspectors, e observed countless health and safety concerns. Other than a small building being used for — cold storage by the VIDE. the overall condition appears to be so poor that the best course of action would be to demolish the existing structures as they do not contribute any value to the subject site. Therefore, an adjustment will be made to the land valuation conclusion to provide an opinion of the “true” As Is Market Value. N0 x 0 -I I- Value Conclusions escription Perspective Type of Value Premise Property Interest Effective Date Indicated Value L. Existing Condition Current Market Value As Is Fee Simple 02/24/2025 $0 After Demolition Current Market Value As Is Fee Simple 02/24/2025 $15,000 Sincerely, Edwards Valuation Services LLC R. David Edwards, ASA, MRICS david@edwardsvaluation.com uJ 0 -I, 0. m V V I C -I 02 II, m II ‘.3 Table of Contents Transmittal Letter 2 Table of Contents 4 Certification - R. David Edwards, ASA, MRICS 5 General Assumptions and Limited Conditions 6 Special Assumptions 6 Executive Summary 8 Purpose of the Appraisal 10 Scope of Work 10 Approaches Performed 10 Regional Overview 12 Zoning 17 Site 17 ConformityConclusion 17 Conformity Comments 17 Subject Site Description 18 Subject Photos 19 Highest and Best Use 21 Highest and Best Use (Site as if Currently Vacant) . 21 Highest and Best Use (Site as Currently Improved) 21 Land Valuation 22 Reconciliation 29 Final Estimate of Value 29 Exposure Time and Marketing Period 29 Addenda 30 A. Letter of Engagement 30 B. Deed 32 C. Sketch 37 D. Aerial Parcel Map 38 E. Appraiser Qualifications 39 F. Appraisal License 42 G.Glossary 43 C ‘1 aa - iii - 0 0 I,., r C -l Cz Lam ‘C nm Ca rrn I Certification - R. David Edwards, ASA, MRICS I certify that to the best of my knowledge and belief: • The statements of fact contained in this report are true and correct. • The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial and unbiased professional analyses, opinions, and conclusions. • I have no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved. • I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. • My engagement in this assignment was not contingent upon developing or reporting predetermined results. • My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. • My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. • R. David Edwards, ASA, MRICS did not personally inspect the subject property. • Ronald Howard (Vi License 2-2262-1 B) provided significant real property appraisal assistance to R. David Edwards, ASA, MRICS. • R. David Edwards, ASA, MRICS has not provided prior services, as an appraiser or in any other capacity, within the three-year period immediately preceding acceptance of this agreement. /[A2/%d6u2 R. David Edwards, ASA, MRICS Effective Date of Appraisal: February 24, 2025 Date of Report: March 24, 2025 UI 0 -‘I UI I C -I 0z VIm 1,m VI II N I General Assumptions and Limited Conditions This appraisal is subject to the following general assumptions and limiting conditions. 1. Title to the property is assumed to be good and marketable and the legal description correct. 2. No responsibility for legal matters is assumed. All outstanding taxes, liens, mortgages, or other encumbrances have been disregarded and the property is appraised as though free and clear, under responsible ownership and competent management. 3. All sketches in this report are intended to be visual aids and should not be construed as surveys or engineering reports. 4. All information in this report has been obtained from reliable sources. We cannot, however, guarantee or be responsible for the accuracy of information furnished by others. 5. Unless otherwise stated, this opinion of value applies to land and improvements only; the value of trade fixtures, furnishings and other equipment has not been included. 6. The distribution of the total valuation in this report between land and improvements applies only under the existing program of utilization. The separate valuations for land and building must not be used in conjunction with any other appraisal and are invalid if so used. 7. Subsurface rights (minerals, water, and oil) were not separately evaluated in making this appraisal. 8. The comparable sales data relied upon in this appraisal are believed to be from reliable sources; however, it was not possible to inspect the comparables completely, and it was necessary to rely upon information furnished by others as to said data, therefore, the value conclusions are subject to the correctness and verification of said data. 9, We inspected, as far as possible, by observation the land and the improvements thereon; however, it was not possible to personally observe conditions beneath the soil or hidden structural components within the improvements. Likewise, no tests were made on the roof, mechanical, plumbing or electrical systems. Unless otherwise stated, no representations are made as to geotechnical conditions of the land or the quality and condition of the roof, heating, cooling, ventilating electrical and plumbing equipment. 10. Unless otherwise stated in this report, the existence of hazardous substances were not called to our attention nor did we become aware of such during our inspection. We have no knowledge of the existence of such materials on or in the property unless otherwise stated. However, we are not qualified to test such substances or conditions. No responsibility is assumed for any such conditions, nor for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in the field or environmental impacts upon real estate if so a’. desired. 0 .7, 11. Neither all nor any part of the contents of this report shall be conveyed to the public through advertising, public a’, relations, news, sales, or other media, without the written consent and approval of the author, particularly as to — the valuation conclusions, the identity of the appraiser or firm with which he is connected, or any reference to the Appraisal Institute. Special Assumptions This appraisal is subject to the following significant assumptions that could reasonably be expected to influence the decisions of users of this appraisal. These significant assumptions include Extraordinary Assumptions and Hypothetical Conditions. 2 m Assumptions The estimated land area for the subject property was obtained from the deed and assessor records. As part of this appraisal, we assume there are no environmental conditions that would negatively impact the marketability of the property. If such conditions exist, it could negatively impact our opinion of market value. Conditions The After Demolition value conclusion is based on the hypothetical condition the subject improvements have been demolished and removed from the site. -V -I I -I •.1 0 ‘1 m V 1 C -I 0 2 m m II I Executive Summary Preparedfor V.1. Department of Property & Procurement 20 A Hospital St I Property Overview Address 20 A Hospital St. Christiansted, St. Croix County, VI 00820 Property Class/Type Land, Commercial Property Owner Government of the Virgin Islands I Valuations Value Conclusions Description Perspective Type of Value Premise Property Interest Effective Date Indicated Value Existing Condition Current Market Value As Is Fee Simple 02/24/2025 $0 After Demolition Current Market Value As Is Fee Simple 02/24/2025 $15 000 J Indicated Values o Description Indicated Value Land Value $15,000 Cost Approach N/A Sales Comparison Approach N/A Income Approach N/A Site Characteristics Site Characteristics Legal Description Lot No 20-A Hospital Street Parcel Identifier 2-04904-1102-00 Christiansted, St. Croix, Virgin Islands as per attached Measure Brief SF / Acres 2,400 I 0.0551 Access Average Classification Shape Rectangular Topography Basically Level Flood Zone X Site Utility Average Zoning Characteristics Zoning Characteristics Zoning U.S. Virgin Islands Zoning Codes R-4 Jurisdiction Zoning Residential - Medium Density Conformity Unknown Description Conclusion Conformity “We are unable to make a determination Comments as to the conformity of the property. The reader is encouraged to conduct their own investigation and analysis. Sales History To the appraiser’s knowledge, there have been no transactions in the previous three years and the subject property is not currently for sale, or under contract for sale or option to purchase. Scope of Work Scope of Work Information Client Name V.1. Department of Property & Procurement Report Type Appraisal Report Intended Use This report is intended to provide an opinion of the Fair Value of the Fee Simple interest in the property. Intended User This appraisal report was prepared for the exclusive use of the client. Use of this report by other — parties is not permitted. Highest and Best Use as Vacant The highest and best use as vacant is to hold for future development. Once demand warrants, develop with a use that complies with zoning and conforms to the neighborhood. -I 0 Highest and Best Use as Improved z The highest and best use as improved is to demolish the existing improvements and redevelop the site. Assumptions The estimated land area for the subject property was obtained from the deed and assessor records. As part of this appraisal, we assume there are no environmental conditions that would negatively impact the marketability of the property. If such conditions exist, it could negatively impact our opinion of market value. I I,, -I Conditions The After Demolition value conclusion is based on the hypothetical condition the subject improvements have been demolished and removed from the site. Purpose of the Appraisal The purpose of the appraisal is to estimate the market value of the subject property. Property Inspection Appraiser Extent of inspection Date Inspected R. David Edwards, ASA, MRICS N/A N/A Ronald Howard Interior & Exterior 2/24/2025 Scope of Work As part of this appraisal, we completed a thorough investigation and analysis of the data considered pertinent to valuing the subject property. This report was prepared to conform to the requirements of the Uniform Standards of Professional Appraisal Practice (USPAP) as well as the guidelines set forth in the Financial Institutions Reform Recovery Enforcement Act (FIRREA). Property Identification The property has been identified using the following sources: • Postal address • Public records • Legal description Type and Extent of Data Researched 0 The following information was reviewed in preparing this report: • Flood zone status • Zoning Requirements • Applicable Tax Data • Demographics • Public Record Data • Comparable Data F C Type and Extent of Analysis 0 The data has been gathered and analyzed through the use of appropriate and accepted appraisal methodology to arrive at a probable value indication via each applicable approach to value. Approaches Performed The appraisers have performed the land valuation - sales comparison approaches herein. The cost approach was excluded due to the subject’s age and difficulty accurately estimating accrued depreciation. Its exclusion does not impact the credibility of conclusions within the appraisal. 0 The subject improvements are in such disrepair they could not generate income in their current condition. The absence of this approach does not diminish the reliability of the value conclusions within the report Data Sources Item Source(s) _____________ Site Size Estimated - Multiple Sources Zoning Public Record Gross Building Area Field Measurement Definitions Pertinent definitions, including the definition of market value, are included in the Glossary, located in the Addenda to this report. 0 ‘1 0• m U, I C -4 0z U, ‘Ii I’, U, II Saint Croix (u,s.I —-...-- C. •— \ AP.xand.rM,,,iib. Aprr I Regional Overview Location The U.S. Virgin Islands are located in the Caribbean Sea and the Atlantic Ocean, about 90 miles (140 km) east of Puerto Rico and immediately west of the British Virgin Islands. Aneda ATLANTIC OCEAN S..,d , V,nO*. S) rLiIk , M11r-” “. (U.S.) , I Ne I 0 -I I -I 0 •!1 m V Ill I C -I 0z In rn m Lfl II CARIBBEAN SEA IvocJ• F.’... The territory consists of four main islands: Saint Thomas, SaintJohn, Saint Croix, and Water Island, as well as several dozen smaller islands. The combined land area of the islands is roughly twice the size of Washington, D.C. A mild tropical climate, scenic beauty, and status as a U.S. territory make Virgin Islands appealing for vacationers from United States and Europe. The islands host over 2.5 million visitors per year, most of whom arrive by cruise ship, and tourism is the dominant economic engine of the islands, accounting for roughly 70 percent of the total gross territorial product. Each district has its own distinct landscape, mix and intensity of land uses, cultural identity, and prospects for future development. St Thomas is home to the capital and the territory’s largest city, Charlotte Amalie, which has an estimated population of roughly 19,000 persons. St Thomas is the primary center for resort tourism, government, finance, trade, and commerce, but its rugged landscape limits the land available for agriculture and other types of land-intensive development. Charlotte Amalie is also home to a major deepwater harbor that is along major shipping routes to the Panama Canal, and it is just east of the Cyril E King International Airport - one of the busiest airports in Caribbean. St. Thomas has two cruise ship docks, and is the most frequented cruise ship port in the Caribbean. The island of St John is just under 3 miles to the east of St Thomas. Cruz Bay is located on the western coast of the island and serves as its primary port and link to St Thomas. Nearly two thirds of StJohn is owned by the National Park Service and is off-limits to commercial development. St Croix is largest of the three islands, in both land area and population. It is roughly 45 miles to the south of St Thomas. Its primary towns are Christiansted and Frederiksted. Overall the island is flatter and has more land available for additional agricultural, commercial and residential development than St Thomas. St Croix is also the primary manufacturing center for the Virgin Islands, with rum distilleries, a major watch-assembly plant, and; until February 2012, one of the world’s largest petroleum refineries (which ceased refining operations). History The Virgin Islands were originally settled by the Ciboney, Carib, and Arawaks. The islands were named by Christopher Columbus on his second voyage in 1493 for Saint Ursula and her virgin followers. Over the next three hundred years, the islands were held by many European powers, including Spain, England, the Netherlands, France, and Denmark-Norway. The Danes developed the islands with plantation estates, and the estates boundaries are still used in legal descriptions for land to this day. The Danish colonizers established plantations on the islands, primarily producing sugarcane, which required a large labor force. To meet this demand, they imported enslaved Africans. The transatlantic slave trade brought thousands of Africans to the Virgin Islands under brutal conditions. Enslaved people were forced to work on the plantations under harsh conditions, facing severe punishments and living in poor conditions. Maroons were enslaved Africans who escaped from plantations and established their own communities in remote areas. m In the Virgin Islands, maroons found refuge in the dense forests and rugged terrain of the islands. They formed small, autonomous communities and often engaged in acts of resistance against the colonial authorities and plantation owners. One of the most significant acts of resistance was the 1733 slave revolt on St. John. Enslaved Africans, inspired by maroon communities and driven by their desire for freedom, launched a coordinated uprising against the Danish colonizers. They took control of the island for several months before being suppressed by a combined force of Danish, British, and French troops. I” Pressure to end slavery in the Danish West Indies grew throughout the 19th century, influenced by the abolitionist movements in Europe and the United States. Slavery was officially abolished in the Danish West Indies on July 3, 1848, following a major slave rebellion on St. Croix led by General Buddhoe (Moses Gottlieb). The U.S. took possession of the islands on March 31, 1917 and the territory was renamed the Virgin Islands of the United States. U.S. citizenship was granted to the inhabitants of the islands in 1927. Government -I The U.S. Virgin Islands are an organized, unincorporated United States territory. Even though they are U.S. citizens, Virgin Islands residents cannot vote in presidential elections. Virgin Islands residents, however, are able to vote in presidential primary elections for delegates to the Democratic National Convention and the Republican National Convention. The main political parties in the U.S. Virgin Islands are the Democratic Party of the Virgin Islands, the Independent Citizens Movement, and the Republican Party of the Virgin Islands. Additional candidates run as independents. At the national level, the U.S. Virgin Islands elects a delegate to Congress from its at-large congressional district. However, the elected delegate, while able to vote in committee, cannot participate in floor votes. At the territorial level, 15 senators-seven from the district of Saint Croix, seven from the district of Saint Thomas and Saint John, and one senator at-large who must be a resident of Saint John-are elected for two-year terms to the unicameral Virgin Islands Legislature. The U.S. Virgin Islands has elected a territorial governor every four years since 1970. Previous governors were appointed by the President of the United States. Transportation There are two major airports in the USVI, Cyril E. King Airport in Charlotte Amalie, St. Thomas, and Henry E. Rohlsen Airport in Christiansted, St. Croix. There are also a number of inter-island carriers for travel within the Virgin Islands, Puerto Rico, and neighboring Caribbean islands. St. John and Water Island are accessible only by boat. There is ferry service available to both islands from St. Thomas. St. Thomas is a popular cruise ship destination. St. Croix also accommodates cruise ships and St. John receives a few cruise ship calls. There are eight major marinas on St. Thomas for transportation by private boat. The USVI is the only place under US jurisdiction where driving is on the left side of the road, but nearly all passenger vehicles are left hand driven. Population and Employment In 2011, the residential population of the Virgin Islands was at an estimated 105,784 persons. Since then it has decreased annually with a significant decrease which is likely the result of residents moving from the islands after Hurricanes Irma and Maria. The 2020 Census indicated that the population had declined to 87,146. C., Among the three islands, St Croix and St Thomas are nearly equally populous with St John having less than five percent of — the total population of the Virgin Islands. From 2017 to 2021 the territos employment has decreased slightly. This is likely due to the aforementioned hurricanes in 2017 which saw many residents moving from the islands. Industry The territory relies heavily on tourism for economic stability. Additional industries include the production and export of rum; and until early 2012, the production of refined petroleum products (the Hovensa Refinery in St. Croix closed in early 2012 although it has resumed operations at a reduced capacity and ceased operations again). The Gross Domestic Product in 2011 at $4.223 billion, declined to $3.S65 billion in 2014. However, the GDP has steadily increased over the next seven years to $4.444 billion in 2021. Personal income per capita was also in decline from over $25,000 in 2010 and 2011 to just over $21,000 in 2013 but has shown consecutive years of growth from 2013 through 2021. Tourism From The Virgin Islands Consortium: “The cost of housing in the U.S. Virgin Islands is very high, both to construct new dwellings and to rent property. The high cost of housing contributes to social and economic problems-- overcrowding, increased financial stress for households, prevents people from being able to accumulate savings for future investments, high net migration, and difficulties in recruiting and retaining high skilled persons in critical jobs. Drivers of High Prices “4 C z 0 -4 I Id, -I The total number of visitor arrivals to the territory reached over 1.875 million in 2022 including both air and cruise ship arrivals. This represented a 75% growth over the prior year due to the restrictions placed on cruising due to the COVID-1 9 pandemic. It appears that 2023 will an increase over 2022. ... 262,312 87,733 174,579 VISITOR ARRIVALS AIR ARRIVALS CRUISE ARRIVALS 2025 TOTAL YEAR-TO-DATE JANUARY YTD 2025 JANUARY YTD 2025 USVI VISITOR ARRIVALS 2019 TO 2025 YEAR-TO-DATE 3,000,000 2,500,000 2,000,000 1.500,000 1,000,000 500,000 0 •2019 • 2024 Housing •2020 2025 FEB YTD •2021 •2022 •2023 I U’ 0 -I, rn V V Lfl I C -I 0z U’ m I., Iii U’ II Much of the sharp rise in rentals was to the significant damage to the housing stock by hurricanes Irma/Maria, the influx of recovery workers with generous housing stipends, and then rise of shared short-term vacation rentals (AirbnbNBRO/Bonvoy etc.) as the stayover tourist economy recovered and several large hotel properties remain offline five years after the hurricanes. Two major reasons for the high cost of new construction are that virtually all construction materials have to be imported, except for stone aggregate and on the mainland the majority of construction is wood frame and brick and not masonry. Masonry construction recommended to withstand hurricanes is more expensive than wood frame. The disruptions of COVID have caused the price construction materials to spiral.” The USVI government is attempting to alleviate some the stress in the housing market by developing educational and financial assistance programs. Conclusions Prior to the 2017 storms, there appeared to be ongoing resurgence in tourism for St. Thomas and St. John, and real estate activity appeared to be improving. Subsequent to hurricanes Irma and Maria and the re-opening of the limited economy resulting from the COVID-1 9 pandemic, as of the date of this report the U.S. Virgin Islands has experienced a strong relief and recovery phase, and real estate (except for large vacant tracts) activity has increased dramatically with increasing levels of demand and a low level of supply. 0 0,, rn V V I C -I 0z 1 rn m LI) II Zoning Site General Zoning Information Current Use Vacant Residential Dwelling in Poor Condition ZoningJurisdiction U.S. Virgin Islands Zoning Code R-4 Zoning Description Residential - Medium Density General Plan Designation Substantial areas of the Virgin Islands, particularly in the built- up urban sections, have been zoned for a theoretical minimum lot area of 3,000 square feet for residential purposes. In these areas the size of lots varies from 1000 square feet to over 8,000 square feet. The lot area requirements have often been violated for residence purposes by exceptions; further intrusions have permitted nonresidential uses. The result has been a mixture of nonrelated uses in what was supposed to be residential areas of modest homes. Because the pattern of the 1,000 to over 8,000 square foot lots has been established, it is retained but kept for residential purposes. The R-4 Residential zones will limit the density to one hundred twenty (120) persons per acre. This makes it possible to develop areas for multiple family use within a range of low to medium densities. Areas which are no longer suitable for residences alone because of the intrusion of incongruous uses are suggested for different types of zoning Permitted Uses Over 23 uses by right including a variety of agriculture, residential and business uses. Conformity Conclusion Unknown Conformity Comments “We are unable to make a determination as to the conformity of the property. The reader is encouraged to conduct their own investigation and analysis. rn V V In I C -l 0z In m m In II I’J I Subject Site Description Location Legal Description Lot No . 20-A Hospital Street Christiansted, St. Croix, Virgin Islands as per attached Measure Brief Location Classification Good Parcel Identifier 2-04904-1102-00 Location of Parcel Mid-Block -Size r - SF / Acres 2,400/0.0551 Access Primary Frontage Feet 34.00 Primary Frontage Type Local Access Classification Average Access Description There is one access point. Encumbrances Flood Zone X Environmental Description As referenced in the Assumptions and Limiting Conditions to this report, we are not considered experts nor competent to assess environmental issues. Given this limitation, it is noted that our physical inspection of the subject property did not reveal any indication of an environmental hazard. Encumbrances Easements We were not provided a current title report to review. We do not know of any easements, Description encroachments, or restrictions that would adversely affect the use of the site. However, we recommend a title search be completed to determine whether any adverse conditions exist. Site Characteristics Shape Rectangular Topography Basically Level Grade At Grade View / Appeal Average Utilities Description The available utilities are typical for the area. Site Utility Average As referenced in the Assumptions and Limiting Conditions to this report, we are not considered experts nor competent to assess environmental issues. Given this limitation, it is noted that our physical inspection of the subject property did not reveal any indication of an environmental hazard. We were not provided a current title report to review. We do not know of any easements, encroachments, or restrictions that would adversely affect the use of the site. However, we recommend a title search be completed to determine whether any adverse conditions exist. 0z m m II 1, I I Subject Photos 0,, m I C -4 0z rn m Lñ II P.3 C 0 In -l r -I P.3 C 0 ‘1 01 C C In r C -I 0z Ill m n m 01 rrn I Highest and Best Use Process — The highest and best use of the property must be determined for both the subject site as though vacant and for the property as currently improved (if applicable). The highest and best use is: 1. Physically possible for the site. 2. Permitted or reasonably probable under the zoning laws and deed restrictions that apply to the site. 3. Economically feasible. 4. The use which will produce the highest net return on investment (i.e. highest value) from among the possible, permissible, and economically feasible uses. Highest and Best Use (Site as if Currently Vacant) Highest and Best Use as Vacant The highest and best use as vacant is to hold for future development. Once demand warrants, develop with a use that complies with zoning and conforms to the neighborhood. Highest and Best Use (Site as Currently Improved) Highest and Best Use as Improved The highest and best use as improved is to demolish the existing improvements and redevelop the site. 0 -‘1 m C -I 0z m m VI II Land Valuation In evaluating the comparable sales, we selected price per square foot of land area as the primary unit of comparison. This is the unit of comparison most commonly used for this type of property in the marketplace. A map of the comparables, as well as a brief summary of the comparables follows. Detailed write-ups of the comparables are located on the following pages. / A ocv’J K I’. A OVsGac1• Land Land Sale SF Acres Price Sale Date # Property Name 1 l9PrinceSt 2 l6GreenSt 3 40-A New St Alo”Map data ©2025 Google Sale Analysis Analysis SP Analysis Price I Sale Price I Land SF SP I Acre Ne I 0 -V I LI) - N N 0 a’ rn V V LI) I C - 0z m rn LI, II 6/3/2024 2,915 0.0669 1/23/2023 4,792 0.1100 10/18/2022 2,086 0.0479 Sale Price I Land SF $4.01 $4.19 $6.47 $11,700 $20,100 $13,500 Acre $174,888 $182,727 $281,837 $11,700 $20,100 $13,S00 $4.01 $4.19 $6.47 $174,888 $182,727 $281,837 Property Information Property Name Property Class Address County Property Type & Sub-Type Site Information - Site SF/Acres Zoning Code Shape Flood Zone Topography Transaction Information Sale Status Sale Date Seller Buyer Sale Price Analysis Sale Price Sale Price per SF Land Analysis Sale Price per SF Land Sale Confirmed By Sale Confirmed With 19 Prince St Land 19 Prince St, Christiansted, VI 00820 St. Croix Housing / 2,915 / 0.0669 R-4 Rectangular x Basically Level Closed 06/03/2024 SAPP STX, LLC 19 Prince, LLC $11,700 $11,700 $4.01 $4.01 David Edwards Public Record (CCV) :1I C 0 -V -4 I IJ 0 -n m0 0 1 C -4 0z m ‘Ti In 1 C, Land Sale #1 -19 Prince St N C =0 VI -I I 1,, -I Land Sale #2-16 Green St 16 Green St Land Property Information Property Name Property Class Address County Property Type & Sub-Type Site Information - Site SF/Acres Zoning Code Shape Flood Zone Topography Transaction Information Sale Status Sale Date Seller Buyer Sale Price Analysis Sale Price Sale Price per SF Land Analysis Sale Price per SF Land Sale Confirmed By Sale Confirmed With 16 Green St, Christiansted, VI 00820 St. Croix Housing / 4,792/0.1100 R-4 Rectangular VE Basically Level Closed 01/23/2023 Benito Rosa Perez Aasora Group, LLC $20,100 $20,100 $4.19 $4.19 David Edwards Public Record (COy) N 0,, -I V V I’, F C -I 0z VI rn F” VI II SF/Acres Zoning Code Shape Flood Zone Topography 2,086 / 0.0479 R-4 Rectangular x Basically Level m 0 I C -4 02 m m II Land Sale #3 40 A New St 40-A New St Property Information Property Name Property Class Address County Property Type & Sub-Type Site Information - Site Land 40-A New St, Christiansted, VI 00820 St. Croix Housing!-- N0 0 -I I -I N UI 0 I1 Transaction Information Sale Status Sale Date Seller Buyer Sale Price Analysis Sale Price Sale Price per SF Land Analysis Sale Price per SF Land Sale Confirmed By Sale Confirmed With Closed 10/18/2022 Kathleen T Mahoney Arleen Gerard $13,00 $13,500 $6.47 $6.47 David Edwards Public Record (COV) Elements of Comparison — Related to the Transaction We have evaluated the comparable sales based on differences in various elements of comparison. The first of these are elements that must be compared in every analysis and are related to the property rights conveyed, the terms/financing, conditions of the sale, expenditures after the sale, excess land value, and market conditions. Property Rights The property rights involved in the sales did not appear to have a significant impact on the prices, and no adjustments were required. Terms I Financing The terms/financing involved in the sales did not appear to have a significant impact on the prices, and no adjustments were required. Conditions of Sale The conditions involved in the sales did not appear to have a significant impact on the prices, and no adjustments were required. Expenditures After Sale The expenditures after sale involved in the sales did not appear to have a significant impact on the prices, and no adjustments were required. Excess Land Value The excess land value involved in the sales did not appear to have a significant impact on the prices, and no adjustments were required. Market Conditions As can be seen, the sales have occurred relatively recently. Available market data does not indicate any significant change in prices of comparable properties during this period, and no adjustments for market conditions were required. Elements of Comparison — Related to the Real Estate 0 In addition, it is necessary to evaluate the sales based on location, physical and economic characteristics. The comparable sales most similar to the subject were analyzed and consideration was given to the variables in — comparison to the subject. The following adjustment grid implies a level of accuracy that may not exist in the current market. However, the grid has been included to illustrate the magnitude of warranted adjustments. The use of an adjustment grid in making quantitative adjustments is only appropriate and reliable when the extent of adjustment for each particular factor is well supported and the dollar or percentage adjustment is derived through either paired sales analysis or other data relevant to the market. In instances where paired sales and market data are not readily available, the appraiser must use his best judgment to make a reasonable estimate for the appropriate warranted adjustments. If the comparable sale was considered superior to the subject, then a negative adjustment was applied. If the comparable sale was considered inferior to the subject, then a positive adjustment was applied. If the comparable sale was considered similar to the subject, then no adjustment was applied. Land Adjustments - C Subject Sale #1 Sale #2 Sale #3 Name 20 A Hospital St 19 Prince St 16 Green St 40-A New St Street Address 20 A Hospital St 19 Prince St 16 Green St 40-A New St City Christiansted Christiaristed Christiansted Christiansted Sale Price $11,700 $20,100 $13,500 Unit of Comp. Land SF Land SF Land SF Land SF UoC Value 2,40D Sf 2,915 sf 4,792 sf 2,086 sf Sale Price / U0C $4.01 $4.19 $6.47 Transactional Adjustments (calculated cumulatively) Property Rights N/A Fee Simple Fee Simple Fee Simple Similar Similar Similar Terms/Financing N/A $0.00 $0.00 $0.00 Similar Similar Similar Cond. of Sale N/A $0.00 $0.00 $0.00 Similar Similar Similar Expend.AfterSale N/A $0.00 $0.00 $0.00 Similar Similar Similar Excess Land Val. N/A $0.00 $0.00 $0.00 Similar Similar Similar Market Cond. N/A 6/3/2024 1/23/2023 10/18/2022 Similar Similar Similar Adj. Price per U0C N/A $4.01 $4.19 $6.47 Property Adjustments - Quantitative (not cumulative) Access Average Average Average Good Similar Similar Similar Configuration Rectangular Rectangular Rectangular Rectangular Similar Similar Similar Flood Plain 0% 0% 100% 0% Adjustment 0.00% $0.00 5.00% $0.21 0.00% $0.00 Frontage 34 109 50 34 Adjustment -5.00% -$0.20 0.00% $0.00 0.00% $0.00 Location Good Average Average Good Adjustment 10.00% $0.40 10.00% $0.42 0.00% $0.00 Size 2,400sf 2,915sf 4,792sf 2,086sf Adjustment 0.00% $0.00 5.00% $0.21 0.00% $0.00 Zoning R-4 R-4 R-4 R-4 Similar Similar Similar Total Adjustments Gross%Adj’s N/A 14.96% 20.05% 0.00% Gross $ Adjs N/A $0.60 $0.84 $0.00 z Net % Adj’s N/A 4.99% 20.05% 0.00% Net $ Adj’s N/A $0.20 $0.84 $0.00 Net Adj Price / U0C N/A $4.21 $5.03 $6.47 Analysis Price Indications C Minimum $4.21 Maximum $6.47 Average $5.24 Median $5.03 -I Standard Deviation 0.93 The adjustments are summarized in the above adjustment grid. After adjustments, the comparables range from $4.21 per square foot to $6.47 per square foot with an average of $5.24 per square foot and a median of $5.03 per square foot of land area. All of the value indications have been considered, and the final analysis, all comparables have been given some weight in arriving at our final reconciled per square foot value. However, most weight was placed on Sale 6 since it is immediately adjacent to the subject. Indicated Values ________ Unit of Comparison Land SF Indicated Value I Unit of Comparison $6.25 Land Indicated Value $15,000 Rounded $15,000 N 0 -‘1 m0 V I C -I 0z m m II I Reconciliation Indicated Values Description Indicated Value Land Value $15,000 Cost Approach N/A Sales Comparison Approach N/A Income Approach N/A Final Estimate of Value Land Valuation - Sales Comparison Approach The Sales Comparison Approach involved the comparison of the subject with several sales of similar properties in order to arrive at an estimate of value. The sales were compared to the subject on the basis of property rights, financing, conditions of sale, market conditions, location and other physical characteristics. Adjustments were made to the comparable sales for differences between the sales and the subject. The quantity and quality of information is considered sufficient to arrive at a value conclusion. True As Is Market Value According to the Tax Assessor’s Citizen Access Portal, the subject improvements are valued at $900. The house is approximately 1,140 sq. ft. plus a 242 sq. ft. covered gallery. It appears the structures are concrete which is considered to be Class B construction by the Marshall Valuation Service which indicates demolition costs range from $10.10 to $13.90 per sq. ft. as of December 2023. After adjusting for inflation and location (USVI), the range would be $13.00 to $18.00 per sq. ft. The Virgin Islands Consortium reported on August 22, 2024, that the VIPA awarded a demolition contract for the Island Beachcomber Hotel (18,643 sq. ft. per Assessor). The bids ranged from $357,850 to almost $1.6 million. The lowest bid which was accepted indicating the demolition cost was $19.19 per sq. ft. Considering continuing cost increases and unknown site conditions of the subject, it is reasonable to assume that the demolition cost could be at least $20.00 per square foot. Therefore, it is estimated the demolition costs for the subject would be $28,000 (1,382 sq. ft. x $20.00, rounded). When this is deducted from the Land Value conclusion the result is that the subject has zero monetary value in its current condition. Exposure Time and Marketing Period Based on statistical information about days on market, escrow length, and marketing times gathered through national investor surveys, sales verification, and interviews of market participants, marketing and exposure time estimates of 12 - 24 months, respectively, is considered reasonable and appropriate for the subject property assuming aggressive professional marketing. Value Conclusions z Description Perspective Type of Value Premise Property Interest Effective Date Indicated Value Existing Condition Current Market Value As Is Fee Simple 02/24/2025 $0 After Demolition Current Market Value As Is Fee Simple 02/24/2025 $15,000 N) I Addenda A. Letter of Engagement EDWARDS 3170 NE Carnegie Ddve, Suite 400 Va lua t ion Sc r vi cc s Lee’s Summit, M0f4064 january31, 2025 Virgin Islands Department of Property & Procurement Ms. Jamillah Dullamsingh, Special Assistant 3274 Estate Richmond Christiansted, VI 00820 RE: Quote No. VIDPPO27 - Real Estate Appraisal of2O A Hospital Street, Christianated, VI Property ID 204904110200 Dear Ms. Dullamsingh: This letter is our proposal and if signed, confirmation of your engagement of our services to appraise the above referenced property. The fee will lieTwo Thousand Five Hundred Dollars ($2500] with payment due and payable upon delivery of the appraisal report. It Is understood thatthe appraisal will be completed no later than six weeks from the date of acceptance of this quote. The requested appraisal will be completed in accordance with the following inetructions: 1. The appraisal will be in compliance with USPAP and the individual appraiser should disclose his or her compliance with the USPAP competency provision as well as disclose his or her certification level or designation. 2. The appraisal must include in the certificarion required bythe USPAP an additional statement that this appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. 3. The appraisal will estimate the project’s market value, whereby marketvalue is defined as the moat probable price which the property should bring in all conditions requisite to a fair sale, the buyer and the seller, each acting prudently, andknowledgeally, and assuming the price is not affectedbyundue stimulus whereby: a. buyer and seller are typically motivated; b. both parties arewell advised, each acting inwhathe considers hisown best interest; w c. a reasonable time is allowed for exposure in the open market; 0 d. payment is made in terms of cash in US dollars, or in terms of financial arrangements o comparablethereto; ‘fl e. The price represents a normal consideration of the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with Cl the sale. 4. The written appraisal will be sufficiently descriptive to enable a reviewer to resdily ascertain ri, the estimated value reported and the rationale for all assumptions leading to the valuation estimate. C V In I C -I 0z vim nm Snrrn “50 0 L05-o Virgin Islands Departmentof Property& Procurement Ms. Jamillah Dullamsingh. Special Assistant January3l,2025 Page2 5. The appraisal must analyze and report any prior sales of the property for a three-year period. 6. The apprainal will disclose the assumed marketing period needed to sell the appraised property in light of the property’s characteristim and current market conditions, which assumption should be reflected in the arrived-at-value. 7. The appraisal will analyze and report data on current market trends, including: vacancy rates, rent concessions, and sales prices or market values. Additional comments relate to factors outsidethe property boundaries, which affect the value. Also includes data on current real estate assessments. 0. The appraisal must contain a legal description of she property heing appraised. 9. The three approaches to value: direct sales comparison, income approach, and cost approach, should he utilize or an explanation should be included if one of these approaches is not utilized (i.e. - the income approach for residential owner-occupied real estate). Likewise, if any information required for the completion of the appraisal is unavailable, it should be disclosed and explained in the appraisal reports. 10. Completion and delivery of the report assumes that all relevant parties cooperate with access to the property, if needed and providing any information that maybe required to produce a credible report 11, The appraiser will provide a PDF copy of each appraisal report 12. Invoices not paid within 60 days of the due date will he suhject to a late payment fee of 10%, plus interest at a rate of 10% per annum, calculated daily on the outstanding balance, Please contact me directly at (016)215-3511, if you have any questions concerning these instructions, Sincerely 0, David Edwards, ASA, MRICS Above terms are acceptable. Virgin Islands Department of Property & Procurement Signature_I’44C4Jtt2tC.&Z”tch,, Date 113112025 Print Name________________________________ Title_______________________________ uJ 0 -5’ Os in V 0 Sn r C -I 0z Sn in ‘C n inusrrn B. Deed I0 December 19, 1997 D OP GIP No. 5804/1997 THIS DEED OF GIFT, made this .11th day of TILj , 1997, by and between GWYNETH FR?1NCIS CIVIL, (uGRANTOR), whoSe mailing address is P.O. Box 2522, Christiansted, St. Croix, U.S. Virgin Islands 00822, and the GOVERNMENT OF THE UNITED STATES VIRGIN ISLANDS, (“GR.ANTEE’) WITNESSETH: WHEREAS, Grantor desires to benefit the people of the U.S. Virgin Islands, Grantor has determined to contribute to Grantee certain real property situate in St. Croix, U.S. Virgin Islands; NOW, THEREFORE, Grantor, for and in consideration of the foregoing recitals, and other good and valuable considerations, receipt of which is hereby acknowledged, does by these presents hereby give, remise, release and forever quitclaim to Grantee, all of Grantor’s right, title, interest, claim and demand in that certain real property situate in St. Croix, U.S. Virgin Islands, the same being mere particularly known and described as; Lot No. 20-A Hospital Street Christiansted, St. Croix, Virgin Islands as per attached Measure Brief. TOGETHER WITH all Grantor’s interest in the improvements, tenements, hereditaments and appurtenances thereunto belonging; SUBJECT to easements, restrictive covenants and: encumbrances of record. ‘p RESERVING, and excepting therefrom, however, tGRANTOR the full use, control, income, and possession of the described property for and during GRANTOR’S natural life. IN WITNESS WHEREOF, the GRANTOR has duly executed this instrument as of the date first above written. w IN / ...*1__/ FRANCIS CIVIL DEED OF GIFT Gwyneth Francis Civil AC1OWtED(ENT TERRITORY OF THE VIRGIN ISLANDS DIVISION OF ST. CROIX ) ‘ On tlüs ..LL. day of _________, 1997, before me personally came and appeared GWYNETH’ FRANCIS CIVIL, to me known and known to me to be the person described herein and who executed the foregoing document, and she acknowledged to me that she signed the same freely and voluntarily for the use and purpose therein contained. WITNESS my hand and official seal. // 1J , / NOTARY PUBLIC Accepted By ((/i/ Hiorabe Ro . Schneider, M.D. Governor’-ø—thé Virgin Islands w 0 CERTIFIcATE OF ThLUE IT IS HEREBY CERTIFIED that the value of the property in the foregoing instrument for recording and stamp purposes is — nominal. For recording purposes the. tax assessed value of the property does not exceed $4l,464 OO G H CIS CIVIL, GRANTOR N0 0 /07 DEED OF GIFT Gwyneth Francis Civil Page3 CERTIFICATE OF TEE PUBLIC SURVEYOR IT IS HEREBY CERTIFIED ‘that, according to the records in the Office of the Public Surveyor, the property described in the foregoing instrument has not undergone any change in respect to boundary and area. Office of the Public Surveyor, Christiansted, St. Croi, ByiØ DATED: JUL 11 ed and Ent&cd in lcotders Book for tile ()itiit o SL Croix, Viphi I flds tile U.S.A. a No.—) Y1- 11 0’. m V I C - 0z m m I F.J0 x0 -I I Ln -l 1o w U’ 0 •T1 rn0 0 U’ I C -4 0z U’ m m U’ II N MEASURE-BRIEF 93 For the Property No. , 722’/ 7 in the Town of on the Island of St. Croix, V.1., U.S.A. p THIS IS TO CERTWY that, the abövomentionecl lot, according to the Public Surveyor’s Records, has the following boundaries: to the North ‘$‘ feet towards 7 to the South feet towards _44i’iJ %iZ’r!_,,ZE to the East feet towards A 2i42i/ to the West 7” feet towards The area is abota)1V SqisaawFeet’ jUi 2 Office of the Public Surveyor, Christiansted, St. CroL’ç PLAN Q(J 4j and Enlerid in Recorder’s Boot br me Distict ‘of St Croix, Ir Islands ci the USA at Fgo No. ‘ ‘ ‘ ‘ oroneaIPropyRggi _Pa _________ “3 0’ 0 ‘1 This figure shows the general outline of the property as recorded in the records in the Office of the — Public Surveyor. m V ‘I) 0z GOVT. PSTG. OFFLc 5.e.esaeoae C. Sketch m Vt I C -I 0z Vtm m II N/A SKETCH 0OEIJDU,F F,:. 21J40sP110ksF21/I Ito C._.0F CF400 a_ 7 00020 28.5’ Bedroom Bedroom Bath a a Bedroom Kit/Din Living Room 28.5’ It) Covered flU UWJL_AIWIW SUMICARY ARIA CAtO.II.A00ONS RIAKOOWII C.I- SMUS NSU. IAR’ IN/tIN/ON 00100 . tONsIl I WIllS — fiR 00_Al fl.t000, 1.0 1140.0 137.0 1140.0 ElFit FIOOF 40.0 0 20.5— 1140.0 P/P GaIbry 1.0 242.3 74.0 242.3 5.1 LI/AS/I at I (rla004) 1,140 10.1410.’,.. ((011,0*) 1.140 1/3C I 0 VI -V -I I -I w •.2 0 •T1 at D. Aerial Parcel Map U) 00 0 0’ m V V U, r C -l 0z U, m nm U, rrn E. Appraiser Qualifications R. David Edwards, ASA, MRICS PROFESSIONAL SUMMARY Able to provide a full spectrum of real estate services. Exceptional at working in the real estate field, communicating with clients and organizing data. Adapts to and incorporates the newest technology and real estate practices & appraisal standards. EXPERIENCE 1/91 — Present Edwards Valuation Services, LLC (2015) and Edwards Appraisal Service, LLC., Lee’s Summit, Missouri, Principal / Appraiser Provide real estate appraisals & reviews for commercial and residential properties, and provide consulting services in the Kansas City Metro Area as well as throughout the United States and the U.S. Virgin Islands. 5/04 - Present CEAH Realtors, Lee’s Summit, Missouri Provide commercial real estate services including sales, leasing, asset management, property management, development, tenant representation, and consulting services. 11/15 - 09/18 MountainSeed Appraisal Management, LLC - Commercial Review Appraiser Provided commercial and residential appraisal reviews for lenders throughout the United States. 5/98 - 5/05 Edwards Management Group, LLC, Independence, Missouri, Principal -Provided commercial real estate services including sales, leasing, asset management, property management, development, tenant representation, and consulting services. In addition to commercial real estate services, we provided management services for subsidized multi-family residential projects in Kansas and Missouri. 10/89-5/96 Fluor Daniel, Inc., Kansas City, Missouri, Field & Review Appraiser- Aside from performing appraisals for the Department of Commerce/National Oceanic Atmospheric Administration contract, responsibilities included: providing technical expertise for real estate appraisal subcontract performance; reviewing all appraisals; providing training to subcontract appraisal companies pertaining to eminent domain; and, site appraisal methods for communication and radar facilities. — Project Appraisal/Acquisition Manager— On several projects, I managed and coordinated the development of acquisition policies and procedures, and budgeting, estimating, and auditing efforts for several large right-of way projects in California ranging from $90-$800 million in size. Real Estate Acquisitions & Economic Analysis Manager— For the National Oceanic & Atmospheric Administration, responsibilities included: project coordination and planning; developing acquisition strategy; negotiating and preparing real estate purchase contracts and leases for offices; communications facilities; radar systems; and right-of-way. Developed methods of analysis for a lease versus buy versus existing space modification program for 105 office facilities, coordinated supporting engineering and related activities, performed actual analyses, and reported conclusions to the highest levels within the client agency. Site Acquisition Specialist — Responsible for acquiring sites for a local wireless carrier in the Kansas City Metropolitan area. Responsibility included identifying antenna sites and then acquiring them through leases. I worked closely with local planning and zoning departments, real estate developers, property managers, radio frequency engineers and construction managers, as well as, other wireless carriers. 7/88-10/89 Automated Information Management, Inc. (AIM), Lanham, Maryland Assistant Site Coordinator, Appraiser. and Real Estate Specialist- My responsibilities were to assist in the managing of AIM’s Federal Aviation Administration’s Central Region (Kansas City) project office, provide technical expertise for appraisals and to perform appraisals for land and building acquisition under the threa.t of eminent domain. 9/86-7/88 Hood Appraisal Company, Bowling Green, Kentucky Associate Real Estate Appraiser- Performed right-of-way appraisals involving commercial, industrial, multi family, agricultural and residential properties for the Commonwealth of Kentucky, Department of Transportation. Also performed appraisals of commercial, agriculture and multi-family, residential properties for various clients. EDUCATION Western Kentucky University, Bowling Green, Kentucky - B.A. Economics (1986) Successfully completed or challenged examinations of the following Appraisal Institute course: o Real Estate Appraisal Principles, 1A1 (1990) o Basic Valuation Procedures, 1A2 (1990) o Capitalization Theory and Techniques, A (1990) o Capitalization Theory and Techniques, B (1990) o Case Studies in Real Estate, 2-1 (1991) o Report Writing and Valuation Analysis, 2-2 (1991) o Americans with Disabilities Act, ADA (1993) Successfully completed continuing education requirements required for each jurisdiction in which licensed for each license renewal period. m0 0 in I C -4 0z inm m Li, II N0 I LICENSES/CERTIFICATIONS/DESIGNATIONS ° -I Missouri State Certified General Real Estate Appraiser #RAOO1 490 Kansas Certified General Real Property Appraiser #G-3037 Indiana Certified General Appraiser #CG41 500087 Ohio State Certified General Appraiser #207004649 Florida State Certified General Real Estate Appraiser #RZ3953 Kentucky State Certified General Real Estate Appraiser #5300 South Carolina State Certified General Appraiser #7642 Nebraska Certified General Real Property Appraiser #CG2018012 Tennessee Certified General Real Estate Appraiser #5975 U.S. Virgin Islands Certified General Real Estate Appraiser #0-40842-1 B Missouri Real Estate Salesperson License #SP000002582 American Society of Appraisers — Accredited Senior Appraiser/Real Property (ASA) Chartered Valuation Surveyor - Royal Institution of Chartered Surveyors (MRICS) ORGANIZATION MEMBERSHIPS Independence Council for Economic Development - Board Director (Past Chairman) CLIENTS SERVED Various Federal, State and Local Government Agencies 0 Various Banks and Financial Institutions Various Private Companies, Groups and Individuals m C C 1 C -I 0z m m II I., F. Appraisal License = 0 -4 I Lfl -4 0 •!1 m V V 1 C -4 0z m m II G.Glossary Glossary Unless otherwise noted, the following definitions are taken from The Dictionary of Real Estate Appraisal, Seventh Edition, published by the Appraisal Institute in 2022. Appraisal The act or process of developing an opinion of value; an opinion of value. (p.9) Depreciation In appraisal, a loss in the value of improvements from any cause; the difference between the cost of an improvement on the effective date of the appraisal and the value of the improvement on the same date. (p. 51) Effective Date The date to which an appraiser’s analyses, opinions, and conclusions apply; also referred to as date of value. (p. 60) Exposure Time An opinion, based on supporting market data, of the length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal. (USPAP) Extraordinary Assumption An assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions. Comment: Uncertain information might include physical, legal, or economic characteristics of the subject property; or conditions external to the property, such as market conditions or trends; or the integrity of data used in an analysis. (USPAP) Fee Simple Estate Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. (p. 73) 0 Furniture, Fixtures and Equipment (FF&E) Business trade fixtures and personal property, exclusive of inventory. (p. 80) Gross Living Area (GLA) The total area of finished, above-grade residential space; calculated by measuring the outside perimeter of the structure and includes only finished, habitable, above-grade living space. (Finished basements and attic areas are not generally included in total gross living area. Local practices, however, may differ.) (p. 86) 02 U.,m m U., II I’30 Highest and Best Use 1. The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. 2. The use of an asset that maximizes its potential and that is possible, legally permissible, and financially feasible. The highest and best use may be for continuation of an asset’s existing use or for some alternative use. This is determined by the use that a market participant would have in mind for the asset when formulating the price that it would be willing to bid. (IVS) 3. [The] highest and most profitable use for which the property is adaptable and needed or likely to be needed in the rea historic district 89 sonably near future. (Uniform Appraisal Standards for Federal Land Acquisitions) (p. 88) Hypothetical Condition A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. Comment: Hypothetical conditions are contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. (USPAP) Investment Value 1. The value of a property to a particular investor or class of investors based on the investor’s specific requirements. Investment value may be different from market value because it depends on a set of investment criteria that are not necessarily typical of the market. 2. The value of an asset to the owner or a prospective owner given individual investment or operational objectives (may also be known as worth). (IVS) (p. 99) Leased Fee Interest The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires. (p. 128) Leasehold Interest The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease. (p. 105) Liquidation Value 0 The most probable price that a specified interest in property should bring under the following conditions: 1. Consummation of a sale within a short time period. 2. The property is subjected to market conditions prevailing as of the date of valuation. 3. Both the buyer and seller are acting prudently and knowledgeably. 4. The seller is under extreme compulsion to sell. 5. The buyer is typically motivated. 6. Both parties are acting in what they consider to be their best interests. 7. A normal marketing effort is not possible due to the brief exposure time. 8. Payment will be made in cash in US dollars (or the local currency) or in terms of financial arrangements comparable thereto. 9. The price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. This definition can also be modified to provide for valuation with specified financing terms. (p. 109) Market Rent The most probable rent that a property should bring in a competitive and open market under all conditions requisite to a fair lease transaction, the lessee and lessor each acting prudently and knowledgeably, and assuming the rent is not affected by undue stimulus. Implicit in this definition is the execution market support 117 of a lease as of a specified date under conditions whereby: • Lessee and lessor are typically motivated; • Both parties are well informed or well advised, and acting in what they consider their best interests; • Payment is made in terms of cash or in terms of financial arrangements comparable thereto; and • The rent reflects specified terms and conditions typically found in that market, such as permitted uses, use restrictions, expense obligations, duration, concessions, rental adjustments and revaluations, renewal and purchase options, frequency of payments (annual, monthly, etc.), and tenant improvements (Tis). (p. 116-117) Marketing Time An opinion of the amount of time to sell a property interest at the concluded market value or at a benchmark price during the period immediately after the effective date of an appraisal. Marketing time differs from exposure time, which precedes the effective date of an appraisal. (Advisory Opinion 7 and Advisory Opinion 35 of the Appraisal Standards Board of The Appraisal Foundation address the determination of reasonable exposure and marketing time.) (p. 116) Market Value The most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: • Buyer and seller are typically motivated; • Both parties are well informed or well advised, and acting in what they consider their best interests; • A reasonable time is allowed for exposure in the open market; • Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and • The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. (p. 118) Neighborhood 0 -‘1 1. A group of complementary land uses; a congruous grouping of inhabitants, buildings, or business enterprises 2. A developed residential superpad within a master planned community usually having a distinguishing name and entrance. 3. A geographic area around a property that influences that property, i.e., its environment. (p. 130) Personal Inspection A physical observation performed to assist in identifying relevant property characteristics in a valuation service. Comment: An appraiser’s inspection is typically limited to those things readily observable without the use of special testing or equipment. Appraisals of some types of property, such as gems and jewelry, may require the use of specialized equipment. An inspection by an appraiser is not the equivalent of an inspection by an inspection professional (e.g., a structural engineer, home inspector, or art conservator). (USPAP) Replacement Cost Estimated cost to construct, at current prices as of a specific date, a substitute for a building or other improvements, using modern materials and current standards, design, and layout. (p. 163) 0 Reproduction Cost The estimated cost to construct, at current prices as of the effective date of the appraisal, a duplicate or replica of the building being appraised, using the same or similar materials, construction standards, design, layout, and quality of workmanship and embodying all the deficiencies, superadequacies, and obsolescence of the subject building. (p. 163) Prospective Opinion of Value A value opinion effective as of a specified future date. The term does not define a type of value. 150 prospectus Instead, it identifies a value opinion as being effective at some specific future date. An opinion of value as of a prospective date is frequently sought in connection with projects that are proposed, under construction, or under conversion to a new use, or those that have not yet achieved sellout or a stabilized level of long-term occupancy. (p. 149-150) Retrospective Value Opinion A value opinion effective as of a specified historical date, The term retrospective does not define a type of value. Instead, it identifies a value opinion as being effective at some specific prior date. Value as of a historical date is frequently sought in connection with property tax appeals, damage models, lease renegotiation, deficiency judgments, estate tax, and condemnation. Inclusion of the type of value with this term is appropriate, e.g., “retrospective market value opinion.” (p. 166) Use Value The value of a property based on a specific use, which may or may not be the property’s highest and best use. If the specified use is the property’s highest and best use, use value will be equivalent to market value. If the specified use is not the property’s highest and best use, use value will be equivalent to the property’s market value based on the hypothetical condition that the only possible use is the specified use. (p. 199) 0 0’ WI V V Lñ I C -4 0z WI WI II Integra Realty Resources Miami I Caribbean Appraisal of Real Property Hospital St SFR I Land Vacant Land 20-A Hospital St. Christiansted, St Croix, US Virgin Islands Prepared For: Department of Property & Procurement Date of the Report: February 21, 2025 Report Format: Appraisal Report IRR - Miami / Caribbean File Number: 123-2025-0048 A A Subject Photographs Hospital St SFR / Land 20-A Hospital St. Christiansted, St Croix, US Virgin Islands Aerial Photograph Integra Realty Resources 9155 S. Dadeland Boulevard T 305.670.0001 Miami! Caribbean Suite 1208 F 305.670.2276 Miami, FL 33156 www.irr.com February 21, 2025 Vincent Richards Department of Property & Procurement 8201 Sub Base, 3rd Floor St. Thomas, VI 00802 SUBJECT: Market Value Appraisal Hospital St SFR I Land 20-A Hospital St. Christiansted, St Croix, US Virgin Islands IRR - Miami / Caribbean File No. 123-2025-0048 Dear Mr. Richards: Integra Realty Resources — Miami / Caribbean is pleased to submit the accompanying appraisal of the referenced property. The purpose of the appraisal is to develop the following opinions of value: • The market value as is of the fee simple interest in the subject property as of the effective date of the appraisal, January 31, 2025 The client for the assignment is Department of Property & Procurement. The intended user of this report is the client. The intended use of the report is for portfolio valuation purposes. No other party or parties may use or rely on the information, opinions, and conclusions contained in this report. The subject is a parcel of land containing an area of 0.06 acres or 2,701 square feet. The subject has a poured concrete shell of a single family residence containing 1,500 (estimated) square feet of gross building area. The property is zoned R-4, Residential Medium Density, which permits variety of single family residential and medium density multifamily uses. The appraisal conforms to the Uniform Standards of Professional Appraisal Practice (USPAP), the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute, applicable state appraisal regulations. The appraisal is also prepared in accordance Vincent Richards Department of Property & Procurement February 21, 2025 with the appraisal regulations issued in connection with the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA). Standards Rule 2-2 (Content of a Real Property Appraisal Report) contained in the Uniform Standards of Professional Appraisal Practice (USPAP) requires each written real property appraisal report to be prepared as either an Appraisal Report or a Restricted Appraisal Report. This report is prepared as an Appraisal Report as defined by USPAP under Standards Rule 2-2(a), and incorporates practical explanation of the data, reasoning, and analysis that were used to develop the opinion of value. Based on the valuation analysis in the accompanying report, and subject to the definitions, assumptions, and limiting conditions expressed in the report, the concluded opinions of value are as follows: Value Conclusion ValueType&Appraisal Premise InterestAppraised DateofValue ValueConclusion Market Value As Is Fee Simple January31, 2025 $135,000 Extraordinary Assumptions and Hypothetical Conditions Thevalue conclusions are subjectto thefollowing extraordinary assumptions. An extraordinary assumption is an assignment-specific assumption as of theeffectivedate regarding uncertain information used in an analysis which, if found to befalse, could alter the appraiser’s opinions or conclusions. 1. Nonewereapplied The value conclusions are based on the following hypothetical conditions. A hypothetical condition is a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effectivedateof the assignment results, but is used for the purpose of analysis. 1. Nonewereapplied The use of any extraordinary assumption or hypothetical condition may have affected the assignment results. El Vincent Richards Department of Property & Procurement February 21, 2025 If you have any questions or comments, please contact the undersigned. Thank you for the opportunity to be of service. Respectfully submitted, Integra Realty Resources - Miami / Caribbean Sarah Klink Virgin Islands State-Certified General Real Estate Appraiser #2-66g16-1B Telephone: 412.452.8175 Email: sklink@irr.com El James Andrews, MAI, CRE, FRICS, ASA Virgin Islands State Certified General Real Estate Appraiser #0-14194-16 Telephone: 305.670.0001, ext. 320 Email:jandrews@irr.com Table of Contents Quality Assurance 1 Reconciliation and Conclusion of Value 49 Executive Summary 2 Exposure Time 49 Marketing Time 49 Identification of the Appraisal Problem 3 Subject Description 3 Certification 50 Sale History 3 Assumptions and Limiting Conditions 52 Pending Transactions 3 Addenda Appraisal Purpose 3 A. Appraiser Qualifications Value Type Definitions 4 Appraisal Premise Definitions 4 B. IRR Quality Assurance Survey Property Rights Definitions C. Definitions Client and Intended User(s) D. Property Information Intended Use 5 E. Comparable Data Applicable Requirements 5 F. Engagement Letter Report Format 5 Prior Services 5 Appraiser Competency 5 Scope of Work 6 Economic Analysis 8 Area Analysis 8 Surrounding Area Analysis 24 Property Analysis 27 Land Description and Analysis 27 Real Estate Taxes 36 Highest and Best Use 37 Valuation 39 Valuation Methodology 39 Sales Comparison Approach 40 Analysis and Adjustment of Sales 43 Property Adjustments 45 Land Value Conclusion 47 Hospital St SFR / Land El Quality Assurance Quality Assurance IRR Quality Assurance Program At IRR, delivering a quality report is a top priority. Integra has an internal Quality Assurance Program in which managers review material and pass an exam in order to attain IRR Certified Reviewer status. By policy, every lntegra valuation assignment is assessed by an IRR Certified Reviewer who holds the MAI designation, or is, at a minimum, a named Director with at least ten years of valuation experience. This quality assurance assessment consists of reading the report and providing feedback on its quality and consistency. All feedback from the IRR Certified Reviewer is then addressed internally prior to delivery. The intent of this internal assessment process is to maintain report quality. Hospital St SFR / Land Executive Summary 2 Executive Summary Property Name Hospital St SFR / Land Address 20-A Hospital St. Christiansted, St Croix County, US Virgin Islands 00820 Property Type Land Owner of Record Government of the United States Virgin Islands Tax ID 2-04904-1102-00 Legal Description Lot No. 20-A Hospital Street, Christiansted, St Croix, US Virgin Islands Land Area 0.06 acres; 2,701 SF Zoning Designation R-4, Residential Medium Density Highest and Best Use Multifamily use Exposure Time; Marketing Period 6-12 months; 6-12 months Effective Date of the Appraisal January 31, 2025 Date of the Report February 21, 2025 Property Interest Appraised Fee Simple Sales Comparison Approach Number of Sales 4 Range of Sale Dates Jul 21 to Jul 24 Range of Prices per SF (Unadjusted) $17.02 - $52.80 Indicated Value Before Final Adjustment $81,022 ($30.00/SF) Final Adjustment ($ Amount) $54,000 Description of Final Adjustment Contributory Value of Shell Market Value Conclusion $135,000 ($49.99/SF) The values reported above are subject to the definitions, assumptions, and limiting conditions set forth in the accompanying report of which this summary isa part. No party other than Department of Property & Procurement may use or rely on the information, opinions, and conclusions contained in the report It is assumed that the users of the report have read the entire report, including all of the definitions, assumptions, and limiting conditions contained therein. Extraordinary Assumptions and Hypothetical Conditions The value conclusions are subjectto the following extraordinary assumptions. An extraordinary assumption is an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions. 1. Nonewere applied The value conclusions are based on the following hypothetical conditions. A hypothetical condition is a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. 1. Nonewereapplied The use of any extraordinary assumption or hypothetical condition may have affected the assignment results. Hospital St SFR / Land IiI Identification of the Appraisal Problem 3 Identification of the Appraisal Problem Subject Description The subject is a parcel of land containing an area of 0.06 acres or 2,701 square feet. The subject has a poured concrete shell of a single family residence containing 1,500 (estimated) square feet of gross building area. The property is zoned R-4, Residential Medium Density, which permits variety of single family residential and medium density multifamily uses. A legal description of the property is provided below. Property Identification Property Name Hospital St SFR / Land Address 20-A Hospital St. Christiansted, US Virgin Islands 00820 Tax ID 2-04904-1102-00 Owner of Record Government of the United States Virgin Islands Legal Description Lot No. 20-A Hospital Street, Chri stia nsted, St Croix, US Virgin Islands Sale History The most recent closed sale of the subject is summarized as follows: Sale Date July 15, 1997 Seller Gwyneth Francis Civil Buyer Government of the United States Virgin Islands Sale Price Deed of Gift Recording Instrument Number 5804/1997 No known sales or transfers of ownership have taken place within a three-year period prior to the effective appraisal date. Pending Transactions Based on discussions with the appropriate contacts, the property is not subject to an agreement of sale or an option to buy, nor is it listed for sale, as of the effective appraisal date. Appraisal Purpose The purpose of the appraisal is to develop the following opinion(s) of value: • The market value as is of the fee simple interest in the subject property as of the effective date of the appraisal, January 31, 2025 The date of the report is February 21, 2025. The appraisal is valid only as of the stated effective date or dates. Hospital St SFR / Land Identification of the Appraisal Problem 4 Value Type Definitions The definitions of the value types applicable to this assignment are summarized below. Market Value The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. Buyer and seller are typically motivated; 2. Both parties are well informed or well advised, and acting in what they consider their own best interests; 3. A reasonable time is allowed for exposure in the open market; 4. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.’ Appraisal Premise Definitions The definitions of the appraisal premises applicable to this assignment are specified as follows. As Is Market Value The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date.2 Property Rights Definitions The property rights appraised which are applicable to this assignment are defined as follows. Fee Simple Estate Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.3 Client and Intended User(s) The client and intended user is Department of Property & Procurement. No other party or parties may use or rely on the information, opinions, and conclusions contained in this report. 1 Code of Federal Regulations, Title 12, Chapter I, Part 34.42[h]; also Interagency Appraisal and Evaluation Guidelines, Federal Register, 75 FR 77449, December 10, 2010, page 77472 2 Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th ed. (Chicago: Appraisal Institute, 2022) 3Appraisal Institute, The Dictionary of Real EstateAppraisal, 7th ed. (Chicago: Appraisal Institute, 2022) Hospital St SFR / Land Identification of the Appraisal Problem 5 Intended Use The intended use of the appraisal is for portfolio valuation purposes. The appraisal is not intended for any other use. Applicable Requirements This appraisal report conforms to the following requirements and regulations: • Uniform Standards of Professional Appraisal Practice (USPAP); • Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute; • Applicable state appraisal regulations; Report Format Standards Rule 2-2 (Content of a Real Property Appraisal Report) contained in the Uniform Standards of Professional Appraisal Practice (USPAP) requires each written real property appraisal report to be prepared as either an Appraisal Report or a Restricted Appraisal Report. This report is prepared as an Appraisal Report as defined by USPAP under Standards Rule 2-2(a), and incorporates practical explanation of the data, reasoning, and analysis used to develop the opinion of value. Prior Services USPAP requires appraisers to disclose to the client any other services they have provided in connection with the subject property in the prior three years, including valuation, consulting, property management, brokerage, or any other services. We have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding the agreement to perform this assignment. Appraiser Competency No steps were necessary to meet the competency provisions established under USPAP. The assignment participants have appraised several properties similar to the subject in physical, locational, and economic characteristics, and are familiar with market conditions and trends; therefore, appraiser competency provisions are satisfied for this assignment. Appraiser qualifications and state credentials are included in the addenda of this report. irr Hospital St SFR I Land Scope of Work 6 Scope of Work Introduction The appraisal development and reporting processes require gathering and analyzing information about the assignment elements necessary to properly identify the appraisal problem. The scope of work decision includes the research and analyses necessary to develop credible assignment results, given the intended use of the appraisal. Sufficient information includes disclosure of research and analyses performed and might also include disclosure of research and analyses not performed. To determine the appropriate scope of work for the assignment, the intended use of the appraisal, the needs of the user, the complexity of the property, and other pertinent factors were considered. The concluded scope of work is described below. Research and Analysis The type and extent of the research and analysis conducted are detailed in individual sections of the report. The steps taken to verify comparable data are disclosed in the addenda of this report. Although effort has been made to confirm the arms-length nature of each sale with a party to the transaction, it is Sometimes necessary to rely on secondary verification from sources deemed reliable. Subject Property Data Sources The legal and physical features of the subject property, including size of the site, flood plain data, seismic zone designation, property zoning, existing easements and encumbrances, access and exposure, and condition of the improvements (as applicable) were confirmed and analyzed. Contacts In addition to public records and other sources cited in this appraisal, information pertaining to the subject was obtained from the following party: Jamillah Dullamsingh, Special Assistant, Department of Property and Procurement. Inspection Details regarding the property inspection conducted as part of this appraisal assignment are summarized as follows: Property Inspection Party Inspection Type Inspection Date Sarah Klink On-site January 31, 2025 James Andrews, MAI, CRE, FRICS, None N/A ASA Hospital St SFR / Land Scope of Work 7 Valuation Methodology Three approaches to value are typically considered when developing a market value opinion for real property. These are the cost approach, the sales comparison approach, and the income capitalization approach. Use of the approaches in this assignment is summarized as follows: Approaches to Value Approach Applicability to Subject Use in Assignment Cost Approach Not Applicable Not Utilized Sales Comparison Approach Applicable Utilized Income Capitalization Approach NotApplicable Not Utilized In developing an opinion of value for the subject, only the sales comparison approach is used. This approach is applicable to the subject because there is an active market for similar properties, and sufficient sales data is available for analysis. The cost approach is not applicable because there are no improvements that contribute value to the property, and the income approach is not applicable because the subject is not likely to generate rental income in its current state. Hospital St SFR / Land El Area Analysis Economic Analysis Area Analysis Location The U.S. Virgin Islands are located in the Caribbean Sea and the Atlantic Ocean, about 90 miles (140 km) east of Puerto Rico and immediately west of the British Virgin Islands. 8 The territory consists of four main islands: Saint Thomas, Saint John, Saint Croix, and Water Island, as well as several dozen smaller islands. The combined land area of the islands is roughly twice the size of Washington, D.C. Canbbean Sea El Adanic Ocean ‘a - 6n, — 6km us Vtrgrn islands Hospital St SFR I Land Area Analysis 9 A mild tropical climate, scenic beauty, and status as a U.S. territory make Virgin Islands appealing for vacationers from United States and Europe. The islands host over 2.5 million visitors per year, most of whom arrive by cruise ship, and tourism is the dominant economic engine of the islands, accounting for roughly 70 percent of the total gross territorial product. Each district has its own distinct landscape, mix and intensity of land uses, cultural identity, and prospects for future development. St Thomas is home to the capital and the territory’s largest city, Charlotte Amalie, which has an estimated population of roughly 19,000 persons, is the primary center for resort tourism, government, finance, trade, and commerce, but its rugged landscape limits the land available for agriculture and other types of land-intensive development. Charlotte Amalie is also home to a major deepwater harbor that is along major shipping routes to the Panama Canal, and it is just east of the Cyril E King International Airport — one of the busiest airports in Caribbean. St. Thomas has two cruise ship docks, and is the most frequented cruise ship port in the Caribbean. The island of St John is just under 3 miles to the east of St Thomas. Cruz Bay is located on the western coast of the island and serves as its primary port and link to St Thomas. Nearly two thirds of St John is owned by the National Park Service and is off-limits to commercial development. St Croix is largest of the three islands in land area. It is roughly 45 miles to the south of St Thomas. Its primary towns are Christiansted and Frederiksted. Overall the island is flatter and has more land available for additional agricultural, commercial and residential development than St Thomas. St Croix is also the primary manufacturing center for the Virgin Islands, with rum distilleries, a major watch- assembly plant, and; until it closed operations, one of the world’s largest petroleum refineries. History The Virgin Islands were originally settled by the Ciboney, Carib, and Arawaks. The islands were named by Christopher Columbus on his second voyage in 1493 for Saint Ursula and her virgin followers. Over the next three hundred years, the islands were held by many European powers, including Spain, England, the Netherlands, France, and Denmark-Norway. The Danes developed the islands with plantation estates, and the estates boundaries are still used in legal descriptions for land to this day. The U.S. took possession of the islands on March 31, 1917 and the territory was renamed the Virgin Islands of the United States. U.S. citizenship was granted to the inhabitants of the islands in 1927. Government The U.S. Virgin Islands are an organized, unincorporated United States territory. Even though they are U.S. citizens, Virgin Islands residents cannot vote in presidential elections. Virgin Islands residents, however, are able to vote in presidential primary elections for delegates to the Democratic National Convention and the Republican National Convention. The main political parties in the U.S. Virgin Islands are the Democratic Party of the Virgin Islands, the Independent Citizens Movement, and the Republican Party of the Virgin Islands. Additional candidates run as independents. irc Hospital St SFR / Land Area Analysis 10 At the national level, the U.S. Virgin Islands elects a delegate to Congress from its at-large congressional district. However, the elected delegate, while able to vote in committee, cannot participate in floor votes. At the territorial level, 15 senators—seven from the district of Saint Croix, seven from the district of Saint Thomas and Saint John, and one senator at-large who must be a resident of Saint John—are elected for two-year terms to the unicameral Virgin Islands Legislature. The U.S. Virgin Islands has elected a territorial governor every four years since 1970. Previous governors were appointed by the President of the United States. Population and Employment In 2008, the residential population of the Virgin Islands peaked at an estimated 115,852 persons. The subsequent two years showed a sharp decline in population in both St. Thomas and St. Croix. Over the past five years, the population has declined steadily, approximately -1.6% per year, reaching a ten year low in 2017, which is likely the result of residents moving from the islands after Hurricanes Irma and Maria. Population estimates in 2019 remained mostly stable from 2017 estimates. In 2020, the population declined. Among the three islands, St Croix and St Thomas are nearly equally populous with St John having less than 4 percent of the total population of the Virgin Islands. USV1 E0808.oJ,Indlc.to,s S YrMn 2008 2009 2010 2011 2012 2013 2014 2015 2015 2017 2018 2019 2020 2021 008*413 Popldaloo 115852 107343 105405 105,784 105.159 104553 103951 104.116 103190 96,855 96211 95.565 87,145 ‘3.3% St.Cmi,. 56,783 52,512 50,601 50,247 50,085 43,938 49,556 49,542 49,380 46280 45,680 45,720 41,004 ‘3.5% St,Tho.’nas 54,592 50,583 51,634 51,255 51,051 50,610 50316 50,153 49,853 46,680 45321 46,060 42,251 .3.1% 51,1813, 4,477 4,148 4,170 4,134 4,113 4,015 3,989 3,980 3,957 3,935 3,910 3,888 3,880 -0.5% C1413418131,8o,1. 52,630 52,451 51,424 50,729 50,577 47,559 46,784 44.348 48,084 48,245 45,634 43,149 42,593 46,175 .0.8% Clotk.l.nlpbpn.nt 49.589 48,063 47372 46,121 44,559 41,207 40,547 42,772 42,769 42,418 41,210 40,501 38,900 39,491 ‘1.5% LM.n9910943.48t*S(p.rC*r9) 5.8% 7.6% 8.1% 82% 11.7% 13.4% 13.0% 120% 11.1% 120% 8.5% 5.1% 8.7% 811% .4.1% 6448.05#,88.l8P98dll0 88P, U114m5 $4,250 $4,203 $4,339 $4,233 $4,095 $3,785 $3,670 $3,755 $3,872 $3,893 $3544 $4,121 $4,189 $4,444 3.0% CTP P.rCoØ. $30,685 $39,155 $44,778 $40,072 $38,937 $30,198 $35342 $36,152 $37,523 $40,211 $41,409 $43,676 $48,069 5.6% P.8.00811318.5.01) $2,546 $2,002 $2,784 $2,651 $2,545 $2,233 $2,277 $2323 $2,359 $2,417 $2,465 $2,852 $2,743 $2,923 4.7% P9438544 p9440081 ‘983• (58 $02,847 $23,931 $75,543 $25,084 $23,308 $21,353 $21,906 $02311 $22,952 $74,967 $25,622 $25,497 $26,261 $27,049 3.5% 70481 E880,8.)8418080f$) $17249 $1,100,629 $1,828,849 $2350513 $818,038 $948,995 $1,337,031 582,650 $270,452 $972,510 $861,114 $954,406 $598503 149.0% 0056081 p4001.5.5 $13,592 $4327 $9,759 $10,080 $932 $32 $7 $4 $4 $0 $22 $10 V81JJ.oI08J1ab4 pnmts(P4Ibn$) $273.30 $251110 $18720 $179.10 $14140 $155.00 $20140 $14436 $157.27 $117.10 $31538 $27431 $234110 $454.30 37.8% 5tTh038.l/St John $183.90 $7904 $44.50 $87.90 $45.10 $114.80 $14220 $9455 $90.38 $44.10 $11827 $19418 $13620 $207.80 23.0% 56 C704 589.50 $17520 $10650 $91.10 $00.20 $40.80 $5920 $45112 $80.89 $69.90 $16906 $91.77 $11834 $244.04 51.5% From 2014 to 2015 the territory’s Labor Force had an increase for the first time since 2009, but has remained relatively flat since that time until 2018 and 2019 which both saw sharp declines. This is likely due to the aforementioned hurricanes in 2017 which saw many residents moving from the islands. From 2019 to 2020, data shows a decrease in population and labor force and a rise in unemployment. Unemployment continued to slightly rise in 2021. Hospital St SFR / Land Area Analysis 11 Population and Employment 125,000 16.0% 55,000 • 4.0% 45,000 — 35000 2.0% 2 5,0J0 I I I I I I I 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 —Population Civilian employment ——UnempIoyment Rate Industry The territory relies heavily on tourism for economic stability. Additional industries include the production and export of rum; and until early 2012, the production of refined petroleum products (the Hovensa Refinery in St. Croix closed in early 2012 although it has been purchased but has yet to resume operations). The Gross Domestic Product peaked in 2007 at $4.80 billion, declined to $3.76 billion in 2013, and further declined to $3.62 billion for 2014. However, the GDP steadily increased over the next 4 years to $3.98 billion in 2018. From 2019 to 2021, GDP continued to increase and in 2021 it was $4.19 billion. Personal income per capita was also in decline from over $25,000 in 2010 and 2011 to just over $21,000 in 2013 but has shown consecutive years of growth from 2013 through 2019. In 2020, there was a slight decrease. In 2021, personal income per capita increased beyond that of 2019 to $2.92 million. Hospital St SFR / Land Area Analysis 12 Economic Indicators $50,000 $5,000 EE EE $30,000 $3,000 $25,000 $2,500 $2o,ooo $2,000 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 —GTP Per Capita —Per capita personal income ($) —ö—.Gross Territorial Product (GTP, Millions) The closure of the Hovensa refinery, which was one of the territory’s largest employers, also had a significant impact on exports which were previously dominated by petroleum products. As stated earlier, the refinery was sold in 2018. Refinery operations commenced for a short period of time before ultimately shutting down once more as a result of environmental concerns. On December 21, 2021, West Indies Petroleum Limited (WIPL) and Port Hamilton Refining and Transportation, LLLP (PHRT) were the winning bidders in bankruptcy court and now own the refinery. It is unclear if or when the refinery will reopen. Otherwise, the territory predominantly relies on the tourism industry to support the economy. Data for the fiscal year 2020 are not yet available. ConTnerce wsd Trade (MilIlonsof $ Unless Otherwise Noted) 5-Yr Mnool 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Growth Total .opo,t, $9,728.3 $11929.5 $13,313.5 $2,263.2 $1,284.8 $1,671.4 $326.1 $609.0 $1,365.0 $1,229.5 $1,208.4 -5.5% To U.S. $8,495.3 $9,992.5 $10,994.8 $1,377.7 $265.4 $225.8 $194.2 $283.2 $369.6 $348.5 5257.5 2.8% Refined ptro1orn $8,327.3 $9,759.4 $10,486.1 $932.4 $61.6 $6.5 $0.0 $0.0 $0.0 $21.6 510.2 11.4% Othe $168.0 $233.1 $508.7 $445.3 $233.8 $2193 $194.2 $283.2 $369.9 $326.9 5247.3 2.6% To torgo $1,233 0 $1,932.0 $2,318.7 $885.5 $1,019.4 $1,445.6 $1319 $325.8 $995.4 $891.0 5950.9 -6.8% lotalimport. $10,289.9 512,153,9 $13,972.7 $2,966.7 $2,390.1 $3,391.8 $13673 $2,293.2 $3,217.8 $3,705.7 $3,642.9 15% Fror, U.S. $1,139.2 $1,548 4 $1,267.6 $1,719.4 $2,119.2 $2,044.5 $1,222.4 $1,725.5 $2,077.0 $2,240.0 $2,707.5 5.3% C,odepe0oleoro $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $23.9 $32.4 5208.7 Othr, $1,139.3 $1,548.9 $6,767.6 $1,719.4 $2,119.2 $2,144.5 $1,222.4 $1,725.5 $2,054.0 $2,207.6 $2,498.8 3.3% Froro forgn $9,150.6 110,605.0 $12,205.1 $1,247.3 $470.9 $1,241.3 $144.9 $557.7 $1,140.0 $1,466.7 5935.4 .5.0% Coode p090lrorrr $7,005.9 $7,721.7 $10,340.9 $6603 $0.0 $6603 $0.0 $0.0 $256.8 $322.2 $83.4 .075% Othro $2,004.7 $2,883.3 $1,064.2 $587.0 $470.9 $1,247.2 $144.9 $567.7 $8832 $1,144.5 $852.0 -6.3% nr.oport.toUi(thora,ofP.L.) $38,445.3 $40,045.1 $35,801.2 $61,570.0 $68,335.4 $59,418.5 $49,647.3 $56,179.7 $59,326.2 $59,488.9 $64,666.4 1.0% We d..oport.toU,S,(8ho,o..d. $75.0 $52.0 $52.7 $55.6 $60.0 $76.8 $41.4 $0.0 $0.0 $0.0 $0.0 -20.0% Ora.nfr.Iohtimport,(sheraohofton.l 1,065.0 1,091.0 1,157.0 1,475.0 931.0 066.0 948.0 0,046.0 985.0 1,020.0 1,423.0 12.9% To St. Thornon/St John 685.0 612.0 720.0 1,199.0 564.0 558.0 801.0 657.0 627.0 660.0 907.0 12.5% To SI. Cro (duding p000leonrl 380.0 479.0 436.0 776.0 367.0 308.0 347.0 389.0 358.0 360.0 516.0 13.5% 9oL0,e:SIBureauofEnnonrnInRese.rnh Hospital St SFR / Land Area Analysis 13 USVI Commerce $16,000.0 $5,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 —Total Exports (Millions $) Total Imports (Millions $) ——GTP (Millions $) Over ninety percent of non-farm jobs are in the service providing industries, with the remaining jobs being in goods producing industries. Government, professional and business services, and leisure and hospitality are the industries with the largest number of jobs. These three sectors account for 65% of all non-agricultural jobs. Mining and construction, education and health services, financial activities, trade, transportation and utilities sectors account for 9%, 8%, 6% and 5%, respectively. Manufacturing, information, and other services sectors account for about 2% each. It should be noted that these figures did not account for an influx of temporary government and construction workers in the territory due to the hurricane relief and recovery efforts over the past 2-3 years. Tourism The total number of visitor arrivals to the territory reached over 2.8 million in 2014, including both air and cruise ship arrivals. This represented a 4.2% growth over the prior year. There has been a decline each year since, which a substantial decline of 24.5% in 2017 due to Hurricanes Irma and Maria and another slight decline in 2018 as the relief and recovery effort continued. In 2020, there was a significant drop in tourism due to the Covid-19 pandemic. In 2021, visitor arrivals began to rebound and in 2022, there were over 1.8 million. iri Hospital St SFR I Land Area Analysis 14 USV1 V1sIW Expenrtures 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 TotlVto,s(Thounds) 2,245.0 2548.7 2,8815 2,642.1 2,7015 2,814.2 2,643.0 2,573.6 1,944.1 1,9372 2,0745 861.2 $1,062.4 $1,001.2 Growth -7.8% 13.5% 5.5% -1.7% 2.2% 4.2% -6.1% -2.5% -24.5% -0.4% 71% -56.5% 21.4% 69.7% Total VtorEapend6ore $10213 $1,223.3 $1,121.6 $1,210.4 $1168.0 $1,319.0 $1,324.4 $1,142.9 $1,202.0 $1,045.6 $1,030.7 $685.8 $1,603.9 $2,5132 Growth -11.7% 19.8% -8.3% 7.9% 35% 12.4% 0.4% 1.0% -9.2% -22.1% 443% -34.4% -2.6% 2665% FroroStopovoTouriI $087.4 $791.2 $7765 $842.3 $786.0 $832.7 $880.8 $9162 $842.5 $054.6 $6855 $556.8 $912.8 $5583 GryTripExrursionist byPr $28.6 $28.0 $35.4 $35.4 $36.1 $33.4 $35.2 $345 $28.9 $27.7 $33.7 $30.9 $37.7 $167.4 rroroCroioelhip Passgo $305.3 $404.1 $436.7 $413.9 $434.4 $452.9 $408.4 $3922 $330.6 $3633 $3115 $96.1 $53.4 $1,787.4 5o,,owV1B.,eao of Eroromi, Rooo,th USVI Visitor Expenditures $2,050.0 . 4,000.0 $1,850.0 3,500.0 $1,650.0 $1,450.0 3,0000 i:::: 2,500.0 $8500 20000 $650.0 1,500.0 $450.0 1,000.0 $250.0 $50.0 , %*%%_or. 500,0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 — From Stopover Tourists (Mills) From Cruise Visitors (Mills) — Number of Total Visitors It is apparent, that the amount of visitor expenditures from cruise ship passengers has not increased linearly with arrivals since 2009; whereby the ratio was more linear in prior years. Although 2018 saw a slight increase in this statistic, this is most likely due to an atypical decline in 2017 from the hurricanes that occurred in September 2017. Cruise passenger arrivals declined to 1.88 million in 2015, down 9.84% from its peak in 2014. They further declined 3.07% in 2016 to 1.69 million and then declined significantly in 2017 by 24.79% to 1.25 million, again as a result of the unavailability of the ports from the hurricanes in the fall of 2017. There was an increase in arrivals 2018 over 2017, followed by another increase in 2019 of 1.86%. Data from 2020 arrivals has been included but obviously was impacted by the ongoing pandemic. In 2021, visitor expenditures began to rebound after the pandemic and in 2022, they were higher than they have ever been, 2.51 million. Total expenditures from cruise ship visitors declined in 2015 at a similar rate of 9.83% from the prior year, following consecutive years of growth in 2013 and 2014. In 2016, expenditures continued to decline, by a margin of 3.97%. A sharper decline of 15.71% was reported in 2017 although this increased 9.89% in 2018. Cruise revenues declined a further 14.26% in 2019, prior to a significant drop Hospital St SFR / Land Area Analysis 15 of 69.15% in 2020 due to the pandemic. In 2021, cruise ships were not allowed to enter the territory until June. According to the VI Bureau of Economic Research, cruise ship expenditures were at the highest they have even been in 2022 at $1.79 billion. Cn., 861p P58rA,,t44Is 2009 2010 2011 2012 2011 2014 2015 2016 2017 2018 2019 2020 2021 2022 %.11%,%l,l 1,507623 1,751,328 1,027,096 1,790,550 1,886,647 1,970.926 1,747,596 1,694,000 1,284,604 1,366,390 1.391,302 424,583 224,898 937,704 Growth -14.07% 26.16% 2.75% -512% 5.37% 4.94% -1L73% -3.07% -24.17% 637% 1,86% -69400 -47.08% 317.32% 54. Crab, 100,093 169,418 158,166 117.165 116,436 138,055 142,743 59,029 32,634 70,689 55,806 17,444 20,397 83,478 Growth 4966,97% 42.18% 507% -29,93% ‘6.62% 18.57% 3.40% -30.62% -67.05% 14419% -29.97% ‘0874% 20.37% 297.57% TOti 1.582,264 1,858,946 2,038.991 1.984,468 1,398.579 2,093,398 1,878,847 1.776.689 1,317,238 1,430,702 1,433,122 4.42,027 245,895 1,021,182 Groo36 -9.95% 27.49% 867% ‘520% 4.94% 427% ‘9.84% -5.44% -25.86% 801% 017% ‘0916% -4442% 31563% Cn,b,.804.tbpw,toow(MIIon, $3051 $404.1 $436.7 $413.9 $434.4 $4520 $4084 $3922 $380.6 $363.3 $311.5 $96.1 GO NO -30.17% 32.36% 867% -522% 4.95% 426% -9.83% ‘3.97% 45.71% 9.80% -1416% -6915% SG,tO:M&rea, Of 000nofrk R.,,roh flr.I,I,,.,flj4ch4elga2,dputsoI,aNtot.I,fo, B, DO’t&COf USVI Cruise Ship Tourism 2,500,000 $800.0 $700.0 2,000,000 — $600.0 ::: 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 —Cruise Passenger Arrivals — Cruise Visitor Expenditures (Millions) In terms of stopover tourists, the U.S. Virgin Islands ranked on the list of the top tourism markets in the Caribbean, with 2017 stay-over arrivals of about 650,100. This was down significantly from 2016, which saw 797,000 stopover tourist, although again this was mostly due to the devastating hurricanes which hit the USVI in September 2017. The year 2016 indicated improvement in arrivals, with 3.62% growth over the prior period. The number of stay-over arrivals plummeted in 2018, as the majority of the major hotels in territory remained closed due to hurricane damages. Although, there has been a 56.2% in the first and second quarters of 2019 over the same time period in 2018. The chart below illustrates the relationship between arrivals and GDP (note that GDP data was only available through 2016). While cruise arrivals had been in decline from 2014 - 2017, stayover arrivals showed consecutive years of increases prior to 2017, and a drastic increase in 2019 while hurricane relief and Hospital St SFR I Land Area Analysis 16 recovery was ongoing. Note once again that 2020 data reflects the impact of the ongoing pandemic. 2021 has seen a sharp increase in stayover arrivals of 150.37%, a record number since 2010. 2022 was consistent with 2021 in terms of stayover arrivals. iib1I Although the largest contributor to GDP is tourism, there is no longer a strong correlation between the two. Source: Virgin Islands Bureau of Economic Research, WorldBank, Integra Realty Resources El USVI Visitor Arrivals 900,000 2,200,000 2,000,000 800,000 1,800,000 700,000 1,600,00o ________ 1,400,000 600,000 1,200,000 500,000 1,000,000 400,000 800,000 600,000 300,000 400,000 200 000 200,000 2010 2011 j 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Stay-Over ArrvaIs 691,1 678,9 737,6 702,9 730,3 769,0 796,8 650,1 491,0 640,8 329,3 826,8 800,0 Lise1s - 1,858, 2,008,j 1,998, 2,083, 1,878, 1,776, 1,317, 1,430, 1,433, 442,02 245,69 1,021, Stay-Over Arrivals and GDP Per Capita 900,900 $45,900 700,900 __________ 900900 $50900 $40,900 600,900 500,900 $35,900 400,900 300,900 $30,900 200,900 $25900 - $20,900 2010 I 2011 2012 I 2013 I 2014 2015 I 2016 2017 I 2018 I 2019 2020 I 2021 I 2022 Stay0verArrivaIs 691,194 678,962 I 737,651 702,963 I 730,367 769,058 796,889 650,190 491,098 I 640,887 329,300 I 826,823 890,069 GOP Per Cap4a $40,778 I $48,072 $38,937 I $36,198 $35,302 $36,162 $37,523 $40,211 $41,489 $43,076 I $48069 I Hospital St SER / Land Area Analysis 17 Hotel Performance Data from Smith Travel Research indicates 2019 occupancy for reporting hotels of 66.6%, down slightly from 68.6% in 2018. Room Nights Available declined in 2017 and 2018 due to two category 5 hurricanes occurring in September 2017 that made a larger number of hotel properties inoperable. Although the occupancy rate declined 2.87% from 2018 to 2019, all other indicators increased including RNA (3.55%), ADR (4.06%) and RevPar (1.08%). Two of the largest and most upscale hotels in the territory, The Ritz-Canton St. Thomas and the Marriott Frenchman’s Reef Resort, remained closed throughout 2019. The Ritz recently reopened operations as of beginning of 2020, with the Marriott reopened in 2023 as The Westin Beach Resort & Spa at Frenchman’s Reef, after an extensive renovation project. ADR and RevPar increased in 2021 and 2022, with 2022 being the first full year of tourism following the pandemic. In 2023, ADR and RevPar decreased slightly. Hotel Performance by Country - usvi Growth 2018 2019 2020 2021 2022 2023 (LastYear) Sample Size (Rooms) 3,017 3,192 3,185 3,185 3,185 4,107 2895% Room Nights Available (Supply) 1085,005 1123,560 1,162,525 1,162,525 1,162,525 1,307,572 12.48% Room Nights Sold (Demand) 743,780 748,128 547,782 738,087 781,682 798,591 2.16% Occupancy 68.6% 66.6% 47.1% 63.5% 67.2% 61.1% -9.17% Room Revenues $150,738,899 $1S7,783,474 166071,002 365,847,644 437,710,546 422,793,108 -3.41% ADR $202.61 $210.90 $303.11 $495.67 $559.96 $529.42 -S.45% RevPar $138.93 $140.43 $142.85 $314.70 $376.52 $323.34 -14.12% Rooms in Active Pipeline 12/31 553 625 N/A 166 166 126 -24.10% Note: Values inUnited States 0ollar Source:Smith Travel Research: Note: Samole Size reflects the number of rooms withinthe SIR naticioating hotels Hotel Performance - USVI 2020 2021 2022 2023 $303.17 $495.67 $559.96 $529.42 RevPar $138.93 $140.43 $142.85 $314.70 $376.52 $323.34 Occupancy 68.6% 66.6% 47,1% 63.5% 67.2% 61.1% Source: Smith Travel Research (STR nc.) $600.00 80.0% $550.00 $500.00 $450.00 $400.00 $350.00 $300.00 $250.00 $200.00 $150.00 $100.00 ADR 75.0% 70.0% 65.0% 60.0% 55.0% 50.0% 45.0% 40.0% II 2018 2019 $202.67 $210.90 El Hospital St SFR / Land Area Analysis 18 According to STR, there are 126 rooms in the active pipeline, which would add 3.07% to the existing room stock of 4,107 rooms. Housing I Property As the supply of housing has increased in the last two decades, homeownership rates have also increased, although only slightly. Rates increased 1.9 percentage points between 2000 and 2010, and increased an additional 3.8 percentage points from 2010 to 2012. Average home prices dropped by 11.8 percent in 2008, but then increased in 2009 and 2010 by 4 percent and 12.3 percent, respectively. In 2012, average home prices fell 17.4% and then rebounded in 2013 with an increase of 22.1% that year, and consecutive increases each year until 2016 where home prices dropped by 14.8% from 2015. The average sales price in 2016 was $429,340. In 2017, the average home price increased by 12.6% to an average of $483,500, but then declined -15.4% to $409,278 in 2018. This decline can partially be explained by the numerous sales of damaged homes subsequent to Hurricanes Irma and Maria in 2017. Over the past decade, housing costs have accelerated at a greater pace than resident incomes, putting home ownership beyond the reach of all but a few relatively wealthy islanders. In 2018, St. Thomas had an average home sale price of $533,800, while the average home sale price in St. Croix was $365,555. In 2019, St. Thomas had a modest decline in average home sale price of $617,848 while the average home sale price in St. Croix increased significantly to $403,314. Most recently in 2020, St. Thomas had a large increase in average home price to $692,745 while the average home sale price in St. Croix continued to increase substantially to $475,303. In 2019 prices finally caught up to the previous peak in 2007 after a substantial increase in 2019, and prices reached an all-time high in 2020 with continued increases. These years corresponded with a significant reduction in supply corresponding with a sharp increase in sale prices. This was originally due to an influx in temporary relief workers and reduced supply, which created a huge increase in demand. These workers have largely vacated the Virgin Islands; however, there continues to be a shortage of inventory as there has been a sharp increase in the number of residences moving to the territory. According to statistical data provided by the Multiple Listing Service, the value of real estate sales in the St. Thomas-St. Croix MLS grew by 58.3% in 2014 to nearly $200 million on 626 transactions; volume not seen since 2008 and sales pace not seen since 2007. This growth follows 18.3% growth in 2013 which came after six years of declines. Total sales volume declined in 2015 by -11.6%, the first decline since 2012, and was followed by an increase in 2016 of 4.0% and a slight decrease of -0.2% in 2017. In 2018 the total sales volume increased significantly to over $200 million for the first time since 2008 and continued to increase with a massive 39.2% increase in volume in 2019, representing the peak of sales volume since 2006. As the effects of the pandemic were felt in 2020, the total number of sales, sales volume and average sale price all declined from the prior year; however, early 2021 evidence suggests that the slow down was only temporary and prices are once again reaching all-time highs. In 2022, prices continued to rise even though sales volume decreased. Both sales volume and average sales price decrease in 2023 with only 425 sales in the territory and an average sale price of $572,221. Hospital St SFR I Land Area Analysis 19 $500,000,000 $450,000,000 $400,000,000 $350,000,000 $300,000,000 $250,000,000 $200,000,000 $150,000,000 $100,000,000 $700,000 $650,000 $600,000 $550,000 $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 Real Este Ses Volume 2013 2014 2015 2016 2017 2011 2019 2020 2021 2022 2023 NunrbwolSale, 480 626 564 641 598 720 790 696 718 529 425 51ec Volume $024,976,630 5197,800,118 5175,014,020 $182,060,945 $181,652,698 $200,374,820 $278,929,786 5229,448,161 5365,522,120 $324990160 $241,194,348 Growth 18.3% 58.3% -11.6% 4.0% .0.2% 103% 39.2% -17.7% 59.7% -113% -252% Aceroge Sale Price $200,317 $311,132’ $310509’ $285,584’ $303,167’ $278,298’ $353,076’ 5329,667’ $510,475’ $614,348 $572,221 Growth -83% 214% -1.0% -8-8% 11% -84% 26.9% 4.6% 548% 20.3% 4% Sowre:SLlbw,,,,roa,dorue,lton 4.Sb,StThoir,,,a,dSLC,,I. MIS Sales Volume - St. Thomas and St. Croix 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 —Sales Volume —P Average Sale Price Source: St. Thomas/St. Croix MLS Real Estate Ownership and Taxation Ownership is “fee simple”, under the U.S. flag. There are no restrictions against purchasing solely for investment, and no laws dictating when, if ever, you must build on undeveloped land. It should be noted that for 2006 there was a reassessment, and the tax rate changed to $3.77 per $1,000 based on 100% of assessed value (for residential property); however, there was an ongoing court challenge to the reassessment, and a federal injunction blocked tax bills until the issue could be resolved. As of December, 2013, the 2006, 2007, 2008, 2009, 2010, 2011 and 2012 tax bills have all been issued under the old 1999 assessed values and tax rates. This federal court injunction regarding the tax reassessment of VI property values had previously prevented the government from collecting property tax for at least four years, resulting in the government losing US$25 million a month. New assessed values as well as amended tax rates were released in conjunction with the 2013 tax bills in August, 2014. Subsequent tax bills were issued at a rate of two per year until August 2015 when the 2015 bill were released and the Virgin Islands became current with respect to its property taxes. The 2024 tax bills were released on time in the summer of 2024. El Hospital St SFR / Land Area Analysis 20 All real estate transactions also require a Government Transfer Tax (stamp tax), which can be paid by the buyer or seller. 2% for property valued up to $350,000 2.5% for property valued from $350,001 to $1,000,000 3% for property valued from $1,000,001 to $5,000,000 3.5% for property valued over $5,000,001 Notable News and Developments Note that the items listed below were up to date prior to the recent hurricanes that devastated the Virgin Islands which will be discussed in greater detail below. Updated statuses on some of these projects are still undetermined as of the effective appraisal date. • On January 18, 2012, it was announced that the former “Hovensa” refinery would be permanently shut down. This has had a major impact causing an economic downturn on the island, leaving 1,158 former Hovensa workers unemployed and many more employed by the company’s contractors according to the United States Department of Labor. Sale of the facility to Limetree Bay Holdings, a partially-owned subsidiary of ArcLight Capital Partners and Freepoint Commodoties, was approved in December, 2015. In June, 2018 the VI Government announced an agreement with British Petroleum for sale of the refinery. The agreements, of which there are two, call for a total investment of $1.4 billion by ArcLight Capital Partners, the former majority owner of Limetree Bay Terminals, to reopen approximately 25% of the refinery for continued operations. Refining operations resumed in 2020 and 2021, but were halted indefinitely in the Spring of 2021 due to environmental concerns. Most recently, the property went through an auction process and while the results were disputed, ultimately the refinery was sold to West Indies Petroleum and Port Hamilton Refining and Transportation, EPA for a reported sale price of $62,000,000. The purchaser has stated an intention to restart refining operations, although a timellne has not been provided. • A group of local and regional investors have plans to develop a hotel resort on Water Island, just off of St. Thomas. Discussions with up to eight hotel brands were had back in 2015/2016, but ultimately the plans for the development were “put on hold” according to the developer due to lack of local government support. The developer of the project has renewed efforts in the development with the introduction of a new government administration in January 2019. Most recently, plans included a 100-room hotel and 124 multifamily housing units, and discussions with the developers indicate they are still moving forward pending some re-zoning approvals. • The Margaritaville (Wyndham) Vacation Club is the most recently completed resort in Water Bay on the East End of the island of St. Thomas. The project is a renovation of the 290-room Renaissance Grand Beach Resort into 274 timeshare oriented condominium units. • The University of the Virgin Islands has announced plans to develop a medical school on St. Thomas, which will be operated in collaboration between the hospitals on St. Thomas and St. Croix. Progress was stalled on this project due to a shortage of available funding but have resumed as of 2020. The University recently acquired a commercial building that was formerly Hospital St SFR / Land IFt Area Analysis 21 utilized as a grocery store that will be converted into a research and business innovation center. On March 22, 2022, the university announced the Liaison Committee for Medical Education (LCME) denied the medical school candidacy status due to lack of funding. This is another setback in for the university to become and accredited medical school. In September 2017, two category 5 hurricanes came through the Virgin Islands and caused significant damage to individual properties as well as the island-wide power and water grids, as well as internet connectivity and infrastructure. Hurricane Irma hit St. John and St. Thomas on September 6, causing massive property devastation and rendering both islands almost entirely without power, public water, cell reception, or internet connectivity. Weeks later, as recovery efforts were underway, hurricane Maria hit the U.S. Virgin Islands on September 19/20, with the eye of the storm scraping through St. Croix, rendering it almost entirely without power, public water, cell reception or internet connectivity. As of the effective appraisal date, all three islands have completed significant recovery and the markets for residential and commercial real estate were surging through the Covid-19 pandemic, which will be discussed separately in this report. Approximately 43 acres of Lovango Cay were purchased by Lovango Island Holdings, a development group principled by Mark Snider. The group has already opened an existing restaurant/clubhouse for operation and plans to construct an additional 70 overnight tents and cottages along with private sales of remaining residential lots. In November 2020, the project received approval for the requested rezoning, and in June 2021 the project received approval for modification of an existing permit and development has continued. The impact of COVID-19 on supply chains slowed the pace of construction and the company requested more time to complete Phase 2 of the development. • There is a large proposal in the Coral Bay area of St. John. This is a seven phase project proposed by the developer Summer’s End Group and as of December 2020 the project received approval by the U.S. Virgin Islands Senate to ratify permits that will allow development to move forward, despite strong local resistance. It could be an important catalyst for development in this area, as its location will be in Coral Bay on the eastern coast of St. John. The marina is planned to include 145 slips, a mooring field with 12 mooring balls and an additional 75 moorings, a proposed marina complex, restaurant, Customs office, and apartments. If the project is successful, the group plans to develop four new buildings where additional retail, restaurant, office and commercial space would be located. • In May 2021 Fortress Investment Group purchased the Marriott Frenchman’s Reef Hotel from DiamondRock for undisclosed cash considerations and future profit share of the operation. At the time, the property only had the time-share portion of the property re-opened, with extensive re-building efforts ongoing from the 2017 hurricanes. Upon purchase, construction has re-commenced and the target completion date for the remaining guest rooms is the winter of 2022, at which time it is expected all 478 rooms will be in operation. The $350 million dollar rebuild will feature one of a kind amenities. Hospital St SFR / Land Area Analysis 22 • On August 19, 2022, it was announced that 115 room hotel and marina to be called Christiansted Harbor Resort Hotel & Marina would replace Hotel on the Cay. The project is projected to be completed in 2024, with hotel occupancy expected in July of the same year. The new marina is projected to expand the already growing marine industry on St Croix. Once built, the 55M project with a hotel and marina are expected to increase the amount of overnight travelers and increase the number of hotel accommodations on St Croix. Conclusions Prior to the 2017 storms, there appeared to be ongoing resurgence in tourism for St. Thomas and St. John, and real estate activity appeared to be improving. Our forecast was for continued improvement in arrivals and hotel statistics, but only gradual economic improvement for the overall territory. Subsequent to hurricanes Irma and Maria and as of the date of this report, the U.S. Virgin Islands experienced a strong relief and recovery phase, and real estate activity had increased dramatically with increasing levels of demand and a low level of supply. This market balance was ongoing and continued levels of growth were anticipated until the Covid-19 pandemic that occurred in the second quarter of 2020. Immediately following the pandemic, real estate sales and prices increased drastically. Currently, prices and activity are beginning to stabilize, and we anticipate they will remain stable in the near future. irr Hospital St SFR / Land Area Analysis 23 Area Map El US VIRGIN ISLANDS (U.S.) IS Microsoft I Bing Hospital St SFR / Land Surrounding Area Analysis 24 Surrounding Area Analysis The subject is located within the downtown area of Christiansted, the CBD, or economic and cultural center of the island of St. Croix. More specifically the subject is located 1,475 feet south of the Christiansted boardwalk that runs along the harborfront. Access and Linkages Primary highway access to the area is via the Christiansted Bypass, a major thoroughfare that traverses the central/eastern portion of the island in a generally east/west direction. The Christiansted Bypass is the main thoroughfare that provides access to Christiansted, and direct access to the town is provided from King Street. Public transportation is provided by the Vitran Public Bus System, which services various areas of St. Croix, including a regular route between Christiansted and Frederiksted. The local market perceives public transportation as fair compared to other areas in the region. However, the primary mode of transportation to this area is via automobile. The Henry E. Rohlsen Airport is located about eight miles west of the subject property, with travel time of approximately 20 minutes depending on traffic conditions. Demand Generators The economy of St. Croix was once dominated by agriculture, but there was rapid industrialization of the island’s economy in the 1960s which changed this. As do many other Caribbean islands today, St. Croix relies on tourism as one of its main sources of revenue. There are, however, a number of other industries on the island to help support the economy. The largest employer of the island was HOVENSA, one of the world’s largest oil refineries. HOVENSA is owned and operated by Hess Oil Virgin Islands Corp. (HOVIC), a division of U.S.- based Hess Corporation, and Petroleos de Venezuela, SA (PDVSA), the national oil company of Venezuela. On January 18, 2012, it was announced that the Hovensa refinery would be permanently shut down. This had a major impact, causing a substantial economic downturn on the island, and leaving 1,158 refinery workers unemployed. However, the refinery was recently sold by the USVI Government to ArcLight Capital Partners and as recently as April 2021 refining operations were proceeding. Most recently, operations were indefinitely haulted once again due to significant environmental concerns and it remains unclear if and when refining operations will resume. Also located in St. Croix is the Cruzan Rum Distillery, makers of Cruzan Rum and other liquors such as Southern Comfort. This distillery was founded in 1760, and at one time solely produced a single, “dark’ style rum made from local sugar cane. Currently the sugar molasses used in their various products is imported mostly from the Dominican Republic. In addition, the liquor producer Diageo completed construction in 2012 of a new distillery on a 26-acre industrial site next to the Hovensa Refinery for the purpose of producing Captain Morgan Rum. Hospital St SFR / Land Surrounding Area Analysis 25 Land Use The area is urban in character and approximately 95% developed. Land uses immediately surrounding the subject are predominantly commercial with a variety of uses ranging from small retail, office, and some multifamily and residential uses nearby. Office uses ranging from average to good quality are positioned along King St. just northeast of the subject, while smaller retail and residential uses are position to the south and west of the subject. The typical age of building improvements in the area ranges from historic (early 1900’s) to 25-50 years, with some new development. It’s not uncommon for building to have undergone multiple renovations since the original construction date. Outlook and Conclusions The area is in the growth stage of its life cycle. There have been continuous signs of increased demand and some commercial development over the past 2-3 years, and existing commercial space in the area maintains strong evidence of demand, showing the upside of the subject’s area. Hospital St SFR / Land Surrounding Area Analysis 26 Surrounding Area Map El Christiansted Harbor 1 4,osojpQ, Christiansted 9 I LoH. y Rd •r Hospital St SFR / Land Land Description and Analysis 27 Property Analysis Land Description and Analysis Location The property is located on the southwest side of Hospital Street approximately at its intersection with Lobster Garden Street. Land Area The following table summarizes the subject’s land area. Land Area Summary Tax ID SF Acres 2-04904-1102-00 2,701 0.06 Shape and Dimensions The site is rectangular in shape, with dimensions of approximately 42 feet in width and 64 feet in depth. Site utility based on shape and dimensions is average. Topography The site is generally level and at street grade. The topography does not result in any particular development limitations. Drainage No particular drainage problems were observed or disclosed at the time of field inspection. This appraisal assumes that surface water collection, both on-site and in public streets adjacent to the subject, is adequate. Flood Hazard Status The following table indicates applicable flood hazard information for the subject property, as determined by review of available flood maps obtained from the Federal Emergency Management Agency (FEMA). Flood Hazard Status Community Panel Number 78000000726 Date April 16, 2007 Zone X Description Outside of 500-year floodplain Insurance Required? No Hospital St SFR / Land Land Description and Analysis 28 Environmental Hazards An environmental assessment report was not provided for review, and during the inspection, no obvious signs of contamination on or near the subject were observed. However, environmental issues are beyond the scope of expertise of the assignment participants. It is assumed the property is not adversely affected by environmental hazards. Ground Stability A soils report was not provided for review. Based on the inspection of the subject and observation of development on nearby sites, there are no apparent ground stability problems. However, soils analyses are beyond the scope of expertise of the assignment participants. It is assumed the subject’s soil bearing capacity is sufficient to support a variety of uses, including those permitted by zoning. Streets, Access and Frontage Details pertaining to street access and frontage are provided in the following table. Streets, Access and Frontage Street Hospital Street Frontage Feet 45 Paving Asphalt Curbs None Sidewalks None Lanes 2way,llaneeachway Direction of Traffic Northwest to southeast Condition Good Traffic Levels Moderate Signals/Traffic Control None Access/Curb Cuts N/A Visibility Good Utilities Utilities available to the subject are summarized below. Utilities Service Provider Water WAPA Sewer WAPA Electricity WAPA Natural Gas N/A Local Phone Various local providers Hospital St SFR / Land Land Description arid Analysis 29 Zoning The subject is within the Residential Medium Density zone, which is intended for a variety of single family residential and medium density multifamily uses. The following table summarizes the applicable zoning requirements affecting the subject. Zoning Summary Zoningiurisdiction U.S. Virgin Islands Department of Planning and Natural Resources Zoning Designation R-4 Description Residential Medium Density Legally Conforming? Appears to be legally nonconforming Zoning Change Likely? No Permitted Uses Variety of singlefamily residential and medium density multifamily uses Category Zoning Requirement Minimum Lot Area 3,000 s.f. Minimum Street Frontage (Feet) None Minimum Lot Width (Feet) 40 Minimum Lot Depth (Feet) None Minimum Setbacks (Feet) Front - none; Side - none; Rear - none Maximum Building Height 3 stories Maximum Site Coverage 50% Maximum Density 120 persons/acre or 45 dwelling units per acre Maximum Floor Area Ratio None Parking Requirement Varies per use Other None that we are aware of According to the local planning department, there are no pending or prospective zoning changes. It appears that the current use of the site is a legally nonconforming use that pre-dates the current zoning regulations since it does not meet the requirements for the minimum lot area. Interpretation of zoning ordinances is beyond the scope of expertise of the assignment participants. An appropriately qualified land use attorney should be engaged if a determination of compliance is required. Other Land Use Regulations There are no other known land use regulations that would affect the property. Potential Development Density Based on the maximum density of 45 dwelling units per acre in the current zoning regulations, 2 multifamily dwelling units could be developed on the site. Densities of similar sites are generally consistent with the maximum density under zoning. iri Hospital St SFR / Land Land Description and Analysis 30 Easements, Encroachments and Restrictions A current title report was not provided for review. There are no apparent easements, encroachments, or restrictions that would adversely affect value. This valuation assumes no adverse impacts from easements, encroachments, or restrictions, and further assumes that the subject has clear and marketable title. Conclusion of Site Analysis Overall, the physical characteristics and the availability of utilities result in a functional site, suitable for a variety of uses including those permitted by zoning. Uses permitted by zoning include a variety of single family residential and medium density multifamily uses. No other restrictions on development are apparent. Hospital St SFR / Land Land Description and Analysis 31 II Exterior View of Subject Property View of property facing north Interior View of Subject Property Interior View of Subject Property View of property facing southwest Exterior View of Subject Property Hospital St SER / Land Land Description and Analysis 32 View of property facing south View of property facing southwest Hospital Street facing northwest Hospital Street facing southeast Hospital St SFR / Land Land Description and Analysis 33 Aerial Photograph El Hospital St SFR / Land Land Description and Analysis 34 Survey El / \5::..//’ /,/ \ /,/ ;‘\</,N/ .— s—I. ,I4 S. 8. tL..4 Jb.d a& . 8S Hospital St SFR / Land rn >- C’, C C C’, C0 4-.. C.) U,a) 0 C C’, -J -oC C’, -J U 4-. U, C’, 4-. 0. U,0 ‘II CD CD N CD -D00 LI Real Estate Taxes 36 Real Estate Taxes The situation surrounding real estate taxes in the Virgin Islands had been in flux since 2006 but was ultimately resolved in 2013 with a new territory wide re-assessment and new tax rates. The 2015 tax bills were released in August, 2015 using the new assessed values, and the Virgin Islands is now current with regards to their property taxes. New tax rates were announced in the year 2013 which are still applicable and are applied as follows: 2Ol3Tax Rates Tax Rate (per $1 of Property Type assessed value) unimproved non-commercial real property 0.004946 Residential real property 0.003770 commercial real property 0.007110 Timeshare real property 0.014070 These rates are based on 100% of the assessed value. Real estate taxes and assessments for the 2024 tax year are shown in the following table. Taxes and Assessments - 2024 Assessed Value Taxes and Assessments Ad Valorem TaxiD Land Improvements Total TaxRate Taxes DirectAssessments Total 2-04904-1102-00 $11,500 $900 $12,400 0.377000% $47 $111 $158 Based on the concluded market value of the subject, the assessed value appears low. The subject has $3,385.45 in delinquent taxes. The tax bill is still under previous ownership. We assume since the government now owns the subject the taxes will be exempt. Hospital St SFR / Land Highest and Best Use 37 Highest and Best Use The highest and best use of a property is the reasonably probable use resulting in the highest value, and represents the use of an asset that maximizes its productivity. Process Before a property can be valued, an opinion of highest and best use must be developed for the subject site, both as though vacant, and as improved or proposed. By definition, the highest and best use must be: • Physically possible. • Legally permissible under the zoning regulations and other restrictions that apply to the site. • Financially feasible. • Maximally productive, i.e., capable of producing the highest value from among the permissible, possible, and financially feasible uses. As Though Vacant First, the property is evaluated as though vacant, with no improvements. Physically Possible The physical characteristics of the site do not appear to impose any unusual restrictions on development. Overall, the physical characteristics of the site and the availability of utilities result in functional utility suitable for a variety of uses. Legally Permissible The site is zoned R-4, Residential Medium Density. Permitted uses include variety of single family residential and medium density multifamily uses. There are no apparent legal restrictions, such as easements or deed restrictions, effectively limiting the use of the property. Given prevailing land use patterns in the area, only multifamily use is given further consideration in determining highest and best use of the site, as though vacant. Financially Feasible Based on the accompanying analysis of the market, there is currently adequate demand for multifamily use in the subject’s area. It appears a newly developed multifamily use on the site would have a value commensurate with its cost. Therefore, multifamily use is considered to be financially feasible. Maximally Productive There does not appear to be any reasonably probable use of the site that would generate a higher residual land value than multifamily use. Accordingly, multifamily use, developed to the normal market density level permitted by zoning, is the maximally productive use of the property. Hospital St SFR / Land Highest and Best Use 38 Conclusion Development of the site for multifamily use is the only use which meets the four tests of highest and best use. Therefore, it is concluded to be the highest and best use of the property as though vacant. As Improved The subject has a poured concrete shell of a single family residence containing 1,500 (estimated) square feet of gross building area. The property is zoned R-4, Residential Medium Density, which permits variety of single family residential and medium density multifamily uses. The improvements are not consistent with the highest and best use as vacant. Most Probable Buyer Taking into account the characteristics of the site, as well as area development trends, the probable buyer is a developer or a partial owner-user. Hospital St SFR / Land Valuation Methodology 39 Valuation Valuation Methodology Appraisers usually consider three approaches to estimating the market value of real property. These are the cost approach, sales comparison approach and the income capitalization approach. The cost approach assumes that the informed purchaser would pay no more than the cost of producing a substitute property with the same utility. This approach is particularly applicable when the improvements being appraised are relatively new and represent the highest and best use of the land or when the property has unique or specialized improvements for which there is little or no sales data from comparable properties. The sales comparison approach assumes that an informed purchaser would pay no more for a property than the cost of acquiring another existing property with the same utility. This approach is especially appropriate when an active market provides sufficient reliable data. The sales comparison approach is less reliable in an inactive market or when estimating the value of properties for which no directly comparable sales data is available. The sales comparison approach is often relied upon for owner-user properties and vacant land. The income capitalization approach reflects the market’s perception of a relationship between a property’s potential income and its market value. This approach converts the anticipated net income from ownership of a property into a value indication through capitalization. The primary methods are direct capitalization and discounted cash flow analysis, with one or both methods applied, as appropriate. This approach is widely used in appraising income-producing properties. Reconciliation of the various indications into a conclusion of value is based on an evaluation of the quantity and quality of available data in each approach and the applicability of each approach to the property type. The methodology employed in this assignment is summarized as follows: Approaches to Value Approach Applicability to Subject Use in Assignment Cost Approach Not Applicable Not Utilized Sales Comparison Approach Applicable Utilized Income Capitalization Approach Not Applicable Not Utilized Hospital St SFR / Land Sales Comparison Approach 40 Sales Comparison Approach To develop an opinion of the subject’s land value, as though vacant and available to be developed to its highest and best use, the sales comparison approach is used. This approach develops an indication of value by researching, verifying, and analyzing sales of similar properties. The research focused on transactions within the following parameters: • Location: St Croix • Size: Under 10,000 square feet • Use: Business/Residential • Transaction Date: Past four years For this analysis, price per square foot is used as the appropriate unit of comparison because market participants typically compare sale prices and property values on this basis. The most relevant sales are summarized in the following table: Summary of Comparable Land Sales Sale Date; SF; $/SF No. Name/Address Status Sale Price Acres Zoning Land $/Acre 1 47 King Street Jul-24 $140,000 5,881 B-3 $23.81 $1,037,037 St Croix Closed 0.14 St Croix County VI Comments: Sale of a relatively fi at lot, one block east from the watefront in Frederi ksted. 2 54-ACompany Street Jul-22 $164,000 3,106 B-i $52.80 $2,300,140 Christiansted Closed 0.07 St Croix County VI 3 Comments: The property had been purchased in 5/7/2020 for $100,000. In discussions with the seller’s broker, he did not know the buyers motivations but the seller was firm on the price. The broker indicated that there are ruins on the property and to alter the property in any way it has to be approved by the historical society. The owner of the property originally bought the property to develop it but was unable to because of the restrictions set by the historical society. He also indicated that there has been revitalization happening in the town of Christiansted which can ,v,ntrih,,t to the higher nr- nf nrnrto 25 Hospital Street Sep-21 $99,000 Christiansted Closed 0.07 Christiansted County VI 3,190 B-i $31.03 $1,352,459 Comments: The broker for the sale believes the property should have been listed at a higher price. The buyer was motivated because he owns the property directly next to the subject and the property went under contract immediately. The broker indicated that there are ruins on the property and to alter the property in any way it has to be approved by the historic society. He also indicated that there has been revitalization happening in the town of Christiansted which can contributeto the higher prices of properties. 4 Plot 19 King Street Jul-21 $125,000 7,343 8-2 $17.02 $741,400 Town of Christiansted Closed 0.17 St. Croix County VI Comments: Arms-length transaction. Subject 2,701 Ft-4 Hospital StSFR/ Land 0.06 #N/A El Hospital St SFR / Land Sales Comparison Approach 41 Comparable Land Sales Map BS Microsoft I Bing Hospital St SFR / Land Sales Comparison Approach 42 El Sale 1 Sale 2 47 King Street 54-A Company Street Sale 3 25 Hospital Street Sale 4 Plot 19 King Street Hospital St SFR / Land Sales Comparison Approach 43 Analysis and Adjustment of Sales Adjustments are based on a rating of each comparable sale in relation to the subject. The adjustment process is typically applied through either quantitative or qualitative analysis, or a combination of both analyses. Quantitative adjustments are often developed as dollar or percentage amounts, and are most credible when there is sufficient data to perform a paired sales analysis. While percentage adjustments are presented in the adjustment grid, they are based on qualitative judgment rather than empirical research, as there is not sufficient data to develop a sound quantitative estimate. Although the adjustments appear to be mathematically precise, they are merely intended to illustrate an opinion of typical market activity and perception. With the exception of market conditions, the adjustments are based on a scale, with a minor adjustment in the range of 1- 5% and a substantial adjustment considered to be 20% or greater. The rating of each comparable sale in relation to the subject is the basis for the adjustments. If the comparable is superior to the subject, its sale price is adjusted downward to reflect the subject’s relative attributes; if the comparable is inferior, its price is adjusted upward. Transactional adjustments are applied for property rights conveyed, financing, conditions of sale, expenditures made immediately after purchase, and market conditions. In addition, property adjustments include — but are not limited to — location, access/exposure, size, quality, effective age, economic and legal characteristics, and non-realty components of value. Adjustments are considered for the following factors, in the sequence shown below. Transactional Adjustments Real Property Rights Conveyed The opinion of value in this report is based on a fee simple estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat, as well as non-detrimental easements, community facility districts, and conditions, covenants and restrictions (CC&Rs). All the comparables represent fee simple estate transactions. Therefore, adjustments for property rights are not necessary. Financing Terms In analyzing the comparables, it is necessary to adjust for financing terms that differ from market terms. Typically, if the buyer retained third-party financing (other than the seller) for the purpose of purchasing the property, a cash price is presumed and no adjustment is required. However, in instances where the seller provides financing as a debt instrument, a premium may have been paid by the buyer for below-market financing terms, or a discount may have been demanded by the buyer if the financing terms were above market. The premium or discounted price must then be adjusted to a cash equivalent basis. The comparable sales represented cash-to-seller transactions and, therefore, do not require adjustment. in: Hospital St SFR / Land Sales Comparison Approach 44 Conditions of Sale Adverse conditions of sale can account for a significant discrepancy from the sale price actually paid, compared to that of the market. This discrepancy in price is generally attributed to the motivations of the buyer and the seller. Certain conditions of sale are considered non-market and may include the following: • a seller acting under duress (e.g., eminent domain, foreclosure); • buyer motivation (e.g., premium paid for assemblage, certain 1031 exchanges); • a lack of exposure to the open market; • an unusual tax consideration; • a sale at legal auction. Sale 3 was purchased by a motivated buyer. A downward adjustment was applied. None of the other comparable sales had atypical or unusual conditions of sale. Thus, adjustments are not necessary. Expenditures Made Immediately After Purchase This category considers expenditures incurred immediately after the purchase of a property. There were no expenditures reported for any of the sites. No adjustments are required for expenditures after sale. Market Conditions A market conditions adjustment is applied when market conditions at the time of sale differ from market conditions as of the effective date of value. Adjustments can be positive when prices are rising, or negative when markets are challenged by factors such as a deterioration of the economy or adverse changes in supply and/or demand in the market area. Consideration must also be given to when the property was placed under contract, versus when the sale actually closed. In evaluating market conditions, changes between the comparable sale date and the effective date of this appraisal may warrant adjustment; however, if market conditions have not changed, then no adjustment is required. The sales took place from July 2021 to July 2024. Market conditions have generally been strengthening until October 2022. The adjustment grid accounts for this trend with upward adjustments until October 2022. Hospital St SFR I Land Sales Comparison Approach 45 Market Conditions Adjustment Comp# 1 2 3 4 Sale Date 7/15/2024 7/6/2022 9/29/2021 7/3/2021 Date Annual Growth Rate 10/1/2022 5% 0.00% 1.19% 5.03% 6.23% 1/31/2025 0% 0.00% 0.00% 0.00% 0.00% Total 0.00% 1.19% 5.03% 6.23% Rounded 0% 1% 5% 6% Property Adjustments Location Factors considered in evaluating location include, but are not limited to, demographics, growth rates, surrounding uses and property values. Sale 3 is similar to the subject. No adjustment is necessary. Sale 2 is adjusted downward for superior location. Sales 1 and 4 are adjusted upward for inferior location. Access/Exposure Convenience to transportation facilities, ease of site access, and overall visibility of a property can have a direct impact on property value. High visibility, however, may not translate into higher value if it is not accompanied by good access. In general, high visibility and convenient access, including proximity to major linkages, are considered positive amenities when compared to properties with inferior attributes. Sale 3 is similar to the subject and requires no adjustment. Sales 1 and 2 are superior to the subject. Downward adjustments are applied. Sale 4 is inferior to the subject. An upward adjustment is applied. Size Due to economies of scale, the market exhibits an inverse relationship between land area and price per square foot, such that larger sites generally sell for a lower price per square foot than smaller lots, all else being equal. To account for this relationship, applicable adjustments are applied for differences in land area. The comparables that are larger than the subject are adjusted upward, and vice versa. Sales 2 and 3 are similar to the subject and require no adjustment. Sales 1 and 4 are larger than the subject and require upward adjustments. Shape and Topography This category accounts for the shape of the site influencing its overall utility and/or development potential, as well as the grade of the land. Hospital St SFR / Land Sales Comparison Approach 46 Sales 1, 2 and 4 are similar to the subject and require no adjustment. Sale 3 is inferior to the subject. An upward adjustment is applied. Zoning This element of comparison accounts for government regulations that can affect the types and intensities of uses allowable on a site. Moreover, this category includes considerations such as allowable density or floor area ratio, structure height, setbacks, parking requirements, landscaping, and other development standards. The subject has a zoning designation of R-4 - Residential Medium Density. All of the comparables are superior to the subject. Downward adjustments are applied. Adjustments Summary The sales are compared to the subject and adjusted to account for material differences that affect value. The following table summarizes the adjustments applied to each sale. irt Hospital St SFR / Land Sales Comparison Approach 47 Land Sales Adjustment Grid ______________ ______________ ______________ ______________ _______________ _____________________________ Subject Comparable 1 Comparable 2 Comparable 3 Comparable 4 Name Hospital StSFR/ 47 KingStreet 54-ACompany 25 Hospital Street Plot 19 KingStreet Land Street Address 20-A Hospital St. 47 King Street 54-ACompany 25 Hospital Street Plot 19 KingStreet Street City Christiansted StCroix Christiansted Christiansted Town of Christian5ted County St Croix St Croix St Croix Christiansted St. Croix State US Virgin Islands VI VI VI VI Sale Date Jul-24 Jul-22 Sep-21 Jul-21 SaleStatus Closed Closed Closed Closed Sale Price $140,000 $164,000 $99,000 $125,000 Square Feet 2,701 5,881 3,106 3,190 7,343 Acres 0.06 0.14 0.07 0.07 0.17 Zoning Code R-4 B-3 B-i B-i B-2 Topography Generally level Level Level Level Level and at street grade Shape Rectangular Rectangular Rectangular Rectangular Recta ngular FloodZoneDesignation X X X AE X Price per Square Foot $23.81 $52.80 $31.03 $17.02 Transactional Adjustments Property Rights FeeSimple FeeSimple FeeSimple FeeSimple %Adjustment — — — — FinancingTerms Cash to seller All cash All cash Cash to seller %Adjustment — — — — Conditions of Sale Arm’s-length Arm’s-I ength Motivated buyer Arms-I ength %Adjustment — — -5% — Expenditures Made Immediately After Purchase $Adjustment — — — — Market Conditions 1/31/2025 Jul-24 Jul-22 Sep-21 Jul-21 Annual%Adjustment Variable — 1% 5% 6% Cumulative Adjusted Price $23.81 $53.33 $30.96 $18.04 Property Adjustments Location 25% -5% — 20% Access/Exposure -5% -20% — 15% Size 15% — — 20% Shape and Topography — — 10% — Zoning -15% -15% -15% -15% Net Property Adjustments ($) $4.76 -$21.33 -$1.55 $7.22 Net Property Adjustments (%) 20% -40% -5% 40% Final Adjusted Price $28.57 $32.00 $29.41 $25.26 Range of Adjusted Prices $25.26 -$32.00 Average $28.81 Indicated Value $30.00 Land Value Conclusion Prior to adjustments, the sales reflect a range of $17.02 - $52.80 per square foot. After adjustment, the range is narrowed to $25.26 - $32.00 per square foot, with an average of $28.81 per square foot. To arrive at an indication of value, primary weight is given to all comparable since they represent sales of similar size lots in St Croix. Hospital St SFR / Land Sales Comparison Approach 48 Based on the preceding analysis, the land value conclusion for the subject is presented as follows: Land Value Conclusion Indicated Value per Square Foot $30.00 Subject Square Feet 2,701 Indicated Value $81,022 Adjustments Contributory Value of Shell $54,000 Total Adjustments $54,000 Indicated Value $135,022 Rounded $135,000 The subject has a poured concrete shell of a single family residence containing 1,500 (estimated) square feet of gross building area. The estimated gross building area is based on measurements using aerial GIS. We used Marshall and Swift to estimate the cost to build the structure. The replacement cost of the shell is depreciated based on its age, condition, and for obsolescence, considering the buyer may or may not attribute significant value to it. The value of the structure is concluded below: Building Cost Estimate Replacement Cost New - Building Improvements Bldg Name MVS Building Type Quality Quantity Unit Unit Cast Cost New Shell of Single Family Residence One story residence Fair 1,500 SF $119.00 $178,500 Subtota’: $178,500 Depredation at 70% $124,950 Building Value Less Depredation: $53,550 Rounded: $54,000 Hospital St SFR / Land Reconciliation and Conclusion of Value 49 Reconciliation and Conclusion of Value As discussed previously, only the sales comparison approach is used to develop an opinion of value for the subject. The cost and income approaches are not applicable, and are not used. Based on the preceding valuation analysis and subject to the definitions, assumptions, and limiting conditions expressed in the report, the concluded opinion of value is as follows: Value Conclusion ValueType&Appraisal Premise InterestAppraised DateofValue ValueConclusion Market Value As Is Fee Simple January 31, 2025 $135,000 Extraordi nary Assumptions and Hypothetical Conditions The value conclusions are subjectto the following extraordinary assumptions. An extraordinary assumption is an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions. 1. None were applied The value conclusions are based on the following hypothetical conditions. A hypothetical condition is a condition, directly related to a specific assignment, which is contrary to what is known bythe appraiser to exist on the effectivedateoftheassignmentresults, butis usedforthepurposeofanalysis. 1. Nonewereapplied The use of any extraordinary assumption or hypothetical condition may have affected the assignment results. Exposure Time Exposure time is the length of time the subject property would have been exposed for sale in the market had it sold on the effective valuation date at the concluded market value. Exposure time is always presumed to precede the effective date of the appraisal. Based on review of recent sales transactions for similar properties and analysis of supply and demand in the local land market, the probable exposure time for the subject at the concluded market value stated previously is 6-12 months. Marketing Time Marketing time is an estimate of the amount of time it might take to sell a property at the concluded market value immediately following the effective date of value. As no significant changes in market conditions are foreseen in the near term, a reasonable marketing period for the subject is likely to be the same as the exposure time. Accordingly, the subject’s marketing period is estimated at 6-12 months. Hospital St SFR / Land I Certification 50 Certification We certify that, to the best of our knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions. 3. We have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. 4. We have performed no services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding the agreement to perform this assignment. 5. We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. 6. Our engagement in this assignment was not contingent upon developing or reporting predetermined results. 7. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. 8. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice as well as applicable state appraisal regulations. 9. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute. 10. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 11. Sarah Klink has made a personal inspection of the property that is the subject of this report. James Andrews, MAI, CRE, FRICS, ASA has not personally inspected the subject. 12. No one provided significant real property appraisal assistance to the persons signing this certification. 13. We have experience in appraising properties similar to the subject and are in compliance with the Competency Rule of USPAP. Hospital St SFR / Land Certification 51 El 14. As of the date of this report, James Andrews, MAI, CRE, FRICS, ASA has completed the continuing education program for Designated Members of the Appraisal Institute. Sarah Klink James Andrews, MAI, CRE, FRICS, ASA Virgin Islands State-Certified General Real Estate Virgin Islands State Certified General Real Estate Appraiser #2-66916-18 Appraiser #0-14194-lB Hospital St SFR / Land Reconciliation and Conclusion of Value 52 Assumptions and Limiting Conditions This appraisal and any other work product related to this engagement are limited by the following standard assumptions, except as otherwise noted in the report: 1. The title is marketable and free and clear of all liens, encumbrances, encroachments, easements and restrictions. The property is under responsible ownership and competent management and is available for its highest and best use. 2. There are no existing judgments or pending or threatened litigation that could affect the value of the property. 3. There are no hidden or undisclosed conditions of the land or of the improvements that would render the property more or less valuable. Furthermore, there is no asbestos in the property. 4. The revenue stamps placed on any deed referenced herein to indicate the sale price are in correct relation to the actual dollar amount of the transaction. 5. The property is in compliance with all applicable building, environmental, zoning, and other federal, state and local laws, regulations and codes. 6. The information furnished by others is believed to be reliable, but no warranty is given for its accuracy. This appraisal and any other work product related to this engagement are subject to the following limiting conditions, except as otherwise noted in the report: 1. An appraisal is inherently subjective and represents our opinion as to the value of the property appraised. 2. The conclusions stated in our appraisal apply only as of the effective date of the appraisal, and no representation is made as to the effect of subsequent events. 3. No changes in any federal, state or local laws, regulations or codes (including, without limitation, the Internal Revenue Code) are anticipated. 4. No environmental impact studies were either requested or made in conjunction with this appraisal, and we reserve the right to revise or rescind any of the value opinions based upon any subsequent environmental impact studies. If any environmental impact statement is required by law, the appraisal assumes that such statement will be favorable and will be approved by the appropriate regulatory bodies. 5. Unless otherwise agreed to in writing, we are not required to give testimony, respond to any subpoena or attend any court, governmental or other hearing with reference to the property without compensation relative to such additional employment. 6. We have made no survey of the property and assume no responsibility in connection with such matters. Any sketch or survey of the property included in this report is for illustrative purposes only and should not be considered to be scaled accurately for size. The appraisal iri Hospital St SFR / Land Reconciliation and Conclusion of Value 53 covers the property as described in this report, and the areas and dimensions set forth are assumed to be correct. 7. No opinion is expressed as to the value of subsurface oil, gas or mineral rights, if any, and we have assumed that the property is not subject to surface entry for the exploration or removal of such materials, unless otherwise noted in our appraisal. 8. We accept no responsibility for considerations requiring expertise in other fields. Such considerations include, but are not limited to, legal descriptions and other legal matters such as legal title, geologic considerations such as soils and seismic stability; and civil, mechanical, electrical, structural and other engineering and environmental matters. Such considerations may also include determinations of compliance with zoning and other federal, state, and local laws, regulations and codes. 9. The distribution of the total valuation in the report between land and improvements applies only under the reported highest and best use of the property. The allocations of value for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used. The appraisal report shall be considered only in its entirety. No part of the appraisal report shall be utilized separately or out of context. 10. Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity of the appraisers, or any reference to the Appraisal Institute) shall be disseminated through advertising media, public relations media, news media or any other means of communication (including without limitation prospectuses, private offering memoranda and other offering material provided to prospective investors) without the prior written consent of the persons signing the report. 11. Information, estimates and opinions contained in the report and obtained from third-party sources are assumed to be reliable and have not been independently verified. 12. Any income and expense estimates contained in the appraisal report are used only for the purpose of estimating value and do not constitute predictions of future operating results. 13. If the property is subject to one or more leases, any estimate of residual value contained in the appraisal may be particularly affected by significant changes in the condition of the economy, of the real estate industry, or of the appraised property at the time these leases expire or otherwise terminate. 14. Unless otherwise stated in the report, no consideration has been given to personal property located on the premises or to the cost of moving or relocating such personal property; only the real property has been considered. 15. The current purchasing power of the dollar is the basis for the values stated in the appraisal; we have assumed that no extreme fluctuations in economic cycles will occur. 16. The values found herein are subject to these and to any other assumptions or conditions set forth in the body of this report but which may have been omitted from this list of Assumptions and Limiting Conditions. 17. The analyses contained in the report necessarily incorporate numerous estimates and assumptions regarding property performance, general and local business and economic Hospital St SFR / Land Irr Reconciliation and Conclusion of Value 54 conditions, the absence of material changes in the competitive environment and other matters. Some estimates or assumptions, however, inevitably will not materialize, and unanticipated events and circumstances may occur; therefore, actual results achieved during the period covered by our analysis will vary from our estimates, and the variations may be material. 18. The Americans with Disabilities Act (ADA) became effective January 26, 1992. We have not made a specific survey or analysis of the property to determine whether the physical aspects of the improvements meet the ADA accessibility guidelines. We claim no expertise in ADA issues, and render no opinion regarding compliance of the subject with ADA regulations. Inasmuch as compliance matches each owner’s financial ability with the cost to cure the non conforming physical characteristics of a property, a specific study of both the owner’s financial ability and the cost to cure any deficiencies would be needed for the Department of justice to determine compliance. 19. The appraisal report is prepared for the exclusive benefit of you, your subsidiaries and/or affiliates. It may not be used or relied upon by any other party. All parties who use or rely upon any information in the report without our written consent do so at their own risk. 20. No studies have been provided to us indicating the presence or absence of hazardous materials on the subject property or in the improvements, and our valuation is predicated upon the assumption that the subject property is free and clear of any environment hazards including, without limitation, hazardous wastes, toxic substances and mold. No representations or warranties are made regarding the environmental condition of the subject property. IRR - Miami / Caribbean, Integra Realty Resources, Inc., and their respective officers, owners, managers, directors, agents, subcontractors or employees (the “Integra Parties”), shall not be responsible for any such environmental conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because we are not experts in the field of environmental conditions, the appraisal report cannot be considered as an environmental assessment of the subject property. 21. The persons signing the report may have reviewed available flood maps and may have noted in the appraisal report whether the subject property is located in an identified Special Flood Hazard Area. However, we are not qualified to detect such areas and therefore do not guarantee such determinations. The presence of flood plain areas and/or wetlands may affect the value of the property, and the value conclusion is predicated on the assumption that wetlands are non-existent or minimal. 22. We are not a building or environmental inspector. The Integra Parties do not guarantee that the subject property is free of defects or environmental problems. Mold may be present in the subject property and a professional inspection is recommended. 23. The appraisal report and value conclusions for an appraisal assume the satisfactory completion of construction, repairs or alterations in a workmanlike manner. 24. IRR - Miami / Caribbean is an independently owned and operated company. The parties hereto agree that Integra shall not be liable for any claim arising out of or relating to any appraisal report or any information or opinions contained therein as such appraisal report is the sole and exclusive responsibility of IRR - Miami I Caribbean. In addition, it is expressly Hospital St SER / Land Reconciliation and Conclusion of Value 55 agreed that in any action which may be brought against the Integra Parties arising out of, relating to, or in any way pertaining to the engagement letter, the appraisal reports or any related work product, the Integra Parties shall not be responsible or liable for any incidental or consequential damages or losses, unless the appraisal was fraudulent or prepared with intentional misconduct. It is further expressly agreed that the collective liability of the Integra Parties in any such action shall not exceed the fees paid for the preparation of the assignment (unless the appraisal was fraudulent or prepared with intentional misconduct). It is expressly agreed that the fees charged herein are in reliance upon the foregoing limitations of liability. 25. IRR - Miami / Caribbean is an independently owned and operated company, which has prepared the appraisal for the specific intended use stated elsewhere in the report. The use of the appraisal report by anyone other than the Client is prohibited except as otherwise provided. Accordingly, the appraisal report is addressed to and shall be solely for the Client’s use and benefit unless we provide our prior written consent. We expressly reserve the unrestricted right to withhold our consent to your disclosure of the appraisal report or any other work product related to the engagement (or any part thereof including, without limitation, conclusions of value and our identity), to any third parties. Stated again for clarification, unless our prior written consent is obtained, no third party may rely on the appraisal report (even if their reliance was foreseeable). 26. The conclusions of this report are estimates based on known current trends and reasonably foreseeable future occurrences. These estimates are based partly on property information, data obtained in public records, interviews, existing trends, buyer-seller decision criteria in the current market, and research conducted by third parties, and such data are not always completely reliable. The Integra Parties are not responsible for these and other future occurrences that could not have reasonably been foreseen on the effective date of this assignment. Furthermore, it is inevitable that some assumptions will not materialize and that unanticipated events may occur that will likely affect actual performance. While we are of the opinion that our findings are reasonable based on current market conditions, we do not represent that these estimates will actually be achieved, as they are subject to considerable risk and uncertainty. Moreover, we assume competent and effective management and marketing for the duration of the projected holding period of this property. 27. All prospective value opinions presented in this report are estimates and forecasts which are prospective in nature and are subject to considerable risk and uncertainty. In addition to the contingencies noted in the preceding paragraph, several events may occur that could substantially alter the outcome of our estimates such as, but not limited to changes in the economy, interest rates, and capitalization rates, behavior of consumers, investors and lenders, fire and other physical destruction, changes in title or conveyances of easements and deed restrictions, etc. It is assumed that conditions reasonably foreseeable at the present time are consistent or similar with the future. 28. The appraisal is also subject to the following: Hospital St SFR / Land Reconciliation and Conclusion of Value 56 Extraordinary Assumptions and Hypothetical Conditions The value conclusions are subjectto the following extraordinary assumptions. An extraordinary assumption is an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions. 1. None were applied The value conclusions are based on the following hypothetical conditions. A hypothetical condition is a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. 1. None were applied The use of any extraordinary assumption or hypothetical condition may have affected the assignment results. iri Hospital St SFR I Land Addenda Addendum A Appraiser Qualifications Hospital St SFR / Land iI James V. Andrews, MAI, CRE, FRICS, ASA Experience James Andrews is the Senior Managing Director of the Miami and Caribbean offices of Integra Realty Resources; the largest purely valuation and counseling firm in North America. Mr. Andrews has been actively engaged in valuation and consulting since 1987; both in the USA and the Caribbean. Based in Miami, James Andrews has provided valuation and consulting services on various property types and business interests throughout South Florida and beyond, James was previously based in the Cayman Islands for more than two decades. He co-founded the IRR Caribbean office in 2012; now with offices in the Cayman Islands, U.S. Virgin Islands, and Puerto 9155 S. Dadeland Avenue, Suite 1208 Rico. Miami, FL 33156 Mr. Andrews has valued a variety of asset types but concentrates on hotels/resorts as well as other going concern assets such as marinas, restaurants, golf courses, quarry/mining T 305.670.0001 operations, healthcare facilities, etc. He is also qualified in business valuation and regularly performs valuation and consulting assignments regarding business interests such as partial and full interests in operating companies, real estate holding companies, and intangible assets / irr.com intellectual property. He is currently National Practice Leader of the Integra Hotels Specialty Practice Group and has been involved in hotel projects throughout the USA and Caribbean. Projects include all types of hotel assets from limited-service properties up to luxury resorts. He earned his MAI designation with the Appraisal Institute in 1992. James became an RICS member in 2005 and a fellow in 2008. Other designations he holds include the American Society of Appraisers (ASA in Business Valuation) and the prestigious “CRE” credential from the Counselors of Real Estate. James has served on the International Relations Committee of the Appraisal Institute, the RICS Americas Valuation Council, Vice President (Caribbean) for the International Virtual Chapter for the ASA, and formerly served on the Board of Directors of Integra Realty Resources, Inc. Professional Activities & Affiliations MAI Designation, Appraisal Institute , October 1992 CRE Designation, Counselors of Real Estate, August 2014 RICS Fellow (FRICS), RICS, April 2005- September 2008 Chartered Member (MRICS), RICS, September 2008 ASA Designation, ASA ASA (Real Property), March 2014 ASA Designation, ASA ASA (Business Valuation), September 2015 IRR Certified Reviewer, December 2013 Board of Director: Integra Realty Resources, Inc., October 2017- September 2019 Licenses North Carolina, State Certified General Real Estate Appraiser, A2285, Expires June 2025 Virgin Islands, State Certified General Real Estate Appraiser, 0-14194-1B, Expires Integra Realty Resources - Miami I Caribbean jandrews@irr.com - 305.670.0001 x320 James V. Andrews, MAI, CRE, FRICS, ASA Licenses (Cont’d) December 2025 Puerto Rico, State Certified General Real Estate Appraiser, 357CG, Expires February 2028 Florida, State Certified General Real Estate Appraiser, RZ4094, Expires November 2026 Education Bachelor of Business Administration, Belmont University, Nashville, TN (1985) Appraisal Institute - Various Qualifying, Advanced, and CE Courses American Society of Appraisers - Various Courses in Business Valuation and Intangible Assets Integra Realty Resources- Miami I Caribbean 9155S. Dadeland Avenue, Suite 1208 Miami, FL 33156 T 305.6700001 irr.com jandrews@irr.com - 305.670.0001 x320 Sarah Klink Experience Virgin Islands Certified General Appraiser with Integra Realty Resources — Miami I Caribbean Based in St. Croix, USVI, Sarah is in her third year specializing in commercial real estate with Integra Realty Resources. She began her appraisal career in May 2022 as a trainee under the state of Pennsylvania, transitioning to Integra Caribbean in August 2022. In addition to her appraisal expertise, Sarah brings a strong background in real estate investment and property management. She has served as a General Contractor for numerous renovation projects, overseeing all aspects of project execution, including renovation planning and design, subcontractor selection, tenant screening, and addressing maintenance requests. Sarah also managed day-to-day operations and conducted detailed cost-to-profit analyses to maintain a successful investment portfolio. Her diverse experience underscores her comprehensive understanding of the real estate market and commitment to delivering exceptional results. Licenses Integra Realty Resources - Caribbean 6500 Red Hook Plaza St Thomas, VI 00802 T 844-952-7304 irr.com Virgin Islands, State-Certified General Real Estate Appraiser, 2-66916-1B, Expires December 2025 Education Robert Morris University, Moon Township PA (2006-2008) Bachelor of Arts, Environmental Science Community College of Allegheny County, Oakdale PA (2004-2006) Associate of Science Degree, Business sklink@irr.com - 412.452.8175 About IRR Integra Realty Resources, Inc. (IRR) provides world-class commercial real estate valuation, counseling, and advisory services. Routinely ranked among leading property valuation and consulting firms, we are now the largest independent firm in our industry in the United States, with local offices coast to coast and in the Caribbean. IRR offices are led by MAI-designated Senior Managing Directors, industry leaders who have over 25 years, on average, of commercial real estate experience in their local markets. This experience, coupled with our understanding of how national trends affect the local markets, empowers our clients with the unique knowledge, access, and historical perspective they need to make the most informed decisions. Many of the nation’s top financial institutions, developers, corporations, law firms, and government agencies rely on our professional real estate opinions to best understand the value, use, and feasibility of real estate in their market. Local Expertise... Nationally! irr.com Addenda Addendum B IRR Quality Assurance Survey Hospital St SFR / Land Addenda IRR Quality Assurance Survey We welcome your feedback! At IRR, providing a quality work product and delivering on time is what we strive to accomplish. Our local offices are determined to meet your expectations. Please reach out to your local office contact so they can resolve any issues. Integra Quality Control Team Integra does have a Quality Control Team that responds to escalated concerns related to a specific assignment as well as general concerns that are unrelated to any specific assignment. We also enjoy hearing from you when we exceed expectations! You can communicate with this team by clicking on the link below. If you would like a follow up call, please provide your contact information and a member of this Quality Control Team will call contact you. Link to the IRR Quality Assurance Survey: ciuality.irr.com Hospital St SFR / Land Addenda Addendum C Definitions Hospital St SFR / Land Addenda Definitions The source of the following definitions is the Appraisal Institute, The Dictionary of Real Estate Appraisal, 7th ed. (Chicago: Appraisal Institute, 2022), unless otherwise noted. As Is Market Value The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date. Disposition Value The most probable price that a specified interest in property should bring under the following conditions: 1. Consummation of a sale within a specified time, which is shorter than the typical exposure time for such a property in that market. 2. The property is subjected to market conditions prevailing as of the date of valuation. 3. Both the buyer and seller are acting prudently and knowledgeably. 4. The seller is under compulsion to sell. 5. The buyer is typically motivated. 6. Both parties are acting in what they consider to be their best interests. 7. An adequate marketing effort will be made during the exposure time. 8. Payment will be made in cash in U.S. dollars (or the local currency) or in terms of financial arrangements comparable thereto. 9. The price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. This definition can also be modified to provide for valuation with specified financing terms. Effective Date 1. The date on which the appraisal opinion applies. (SVP) 2. The date to which an appraiser’s analysis, opinions, and conclusions apply; also referred to as date of value. (USPAP, 2020-2021 ed.) 3. The date that a lease goes into effect. Entitlement In the context of ownership, use, or development of real estate, governmental approval for annexation, zoning, utility extensions, number of lots, total floor area, construction permits, and occupancy or use permits. Hospital St SFR I Land Addenda Entrepreneurial Incentive The amount an entrepreneur expects or wants to receive as compensation for providing coordination and expertise and assuming the risks associated with the development of a project. Entrepreneurial incentive is the expectation of future reward as opposed to the profit actually earned on the project. Entrepreneurial Profit 1. A market-derived figure that represents the amount an entrepreneur receives for his or her contribution to a past project to compensate for his or her time, effort, knowledge, and risk; the difference between the total cost of a property (cost of development) and its market value (property value after completion), which represents the entrepreneur’s compensation for the risk and expertise associated with development. An entrepreneur is motived by the prospect of future value enhancement (i.e., the entrepreneurial incentive). An entrepreneur who successfully creates value through new development, expansion, renovation, or an innovation change of use is rewarded by entrepreneurial profit. Entrepreneurs may also fail and suffer losses. 2. In economics, the actual return on successful management practices, often identified with coordination, the fourth factor of production following land, labor, and capital; also called entrepreneurial return or entrepreneurial reward. Exposure Time 1. The time a property remains on the market. 2. An opinion, based on supporting market data, of the length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal. Fee Simple Estate Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. Floor Area Ratio (FAR) The relationship between the above-ground floor area of a building, as described by the zoning or building code, and the area of the plot on which it stands; in planning and zoning, often expressed as a decimal, e.g., a ratio of 2.0 indicates that the permissible floor area of a building is twice the total land area. Highest and Best Use 1. The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. 2. The use of an asset that maximizes its potential and that is possible, legally permissible, and financially feasible. The highest and best use may be for continuation of an asset’s existing use or for some alternative use. This is determined by the use that a market participant would have in mind for the asset when formulating the price that it would be willing to bid. (ISV) Hospital St SER / Land Addenda 3. [The] highest and most profitable use for which the property is adaptable and needed or likely to be needed in the reasonably near future. (Uniform Appraisal Standards for Federal Land Acquisitions) Investment Value 1. The value of a property to a particular investor or class of investors based on the investor’s specific requirements. Investment value may be different from market value because it depends on a set of investment criteria that are not necessarily typical of the market. 2. The value of an asset to the owner or a prospective owner given individual investment or operational objectives (may also be known as worth). (IVS) Lease A contract in which rights to use and occupy land, space, or structures are transferred by the owner to another for a specified period of time in return for a specified rent. Leased Fee Interest The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires. Leasehold Estate The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease. Liquidation Value The most probable price that a specified interest in real property should bring under the following conditions: 1. Consummation of a sale within a short time period. 2. The property is subjected to market conditions prevailing as of the date of valuation. 3. Both the buyer and seller are acting prudently and knowledgeably. 4. The seller is under extreme compulsion to sell. 5. The buyer is typically motivated. 6. Both parties are acting in what they consider to be their best interests. 7. A normal marketing effort is not possible due to the brief exposure time. 8. Payment will be made in cash in U.S. dollars (or the local currency) or in terms of financial arrangements comparable thereto. 9. The price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. This definition can also be modified to provide for valuation with specified financing terms. Hospital St SFR / Land Addenda Marketing Time An opinion of the amount of time to sell a property interest at the concluded market value or at a benchmark price during the period immediately after the effective date of an appraisal. Marketing time differs from exposure time, which precedes the effective date of an appraisal. Market Value The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: • buyer and seller are typically motivated; • both parties are well informed or well advised, and acting in what they consider their own best interests; • a reasonable time is allowed for exposure in the open market; • payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and • the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. (Source: Code of Federal Regulations, Title 12, Chapter I, Part 34.42[h]; also Interagency Appraisal and Evaluation Guidelines, Federal Register, 75 FR 77449, December 10, 2010, page 77472) Prospective Opinion of Value A value opinion effective as of a specified future date. The term does not define a type of value. Instead, it identifies a value opinion as being effective at some specific future date. An opinion of value as of a prospective date is frequently sought in connection with projects that are proposed, under construction, or under conversion to a new use, or those that have not yet achieved sellout or a stabilized level of long-term occupancy. Retrospective Value Opinion A value opinion effective as of a specified historical date. The term retrospective does not define a type of value, Instead, it identifies a value opinion as being effective at some specific prior date. Value as of a historical date is frequently sought in connection with property tax appeals, damage models, lease renegotiation, deficiency judgments, estate tax, and condemnation. Inclusion of the type of value with this term is appropriate, e.g., “retrospective market value opinion.” Hospital St SFR / Land Addenda Addendum D Property Information Hospital St SFR / Land Addenda PARCEL NO: 2-04904-1102-00 OWNER: FRANCIS, GhWNETH C & OTHER ADDRESS: PC BOX 2522 CHRISTIANSTED VI 00822 LOCATiON: 20-A HOSPITAL STREET HOSPITAL STREET VI 00822 LEGAL: 20-A HOSPITAL STREET MAP: 2025 Valustion Reports for NBHD: RX12 Address Repi3 Mkt Sales Rep.nji Back To Search <<Prey Next>> (111 Records I NBH RXI2 Prop Class 102 5th fist 1: Mun. Code: STXC Millage Code: RES Acres’ 0.062 Land: $11,500 Imp: $900 Prey, Total: $12,400 Total: $12,400 Approach COST Asad Vat. $12400 Exempt Val $0 Taxble Vat $12,400 Subdivision: Sales Info SO Past Delinquent $3,385.45 Current Due $171.91 This parcel has returned mail. Contact the Real Property Tax DIvision. Tax Year: $46.76 $171.97 $4675 $60.17 $4676 $6344 $4713 $6391 $61.83 $82.29 $61 83 $82 29 $61.83 $82.29 $61.83 $8229 $61 83 $82 29 $61.83 $62.29 $62.32 $82 90 $49 76 $67.20 $112.50 $208.13 $112.50 $208.13 $112.50 $208.13 $112 50 $208 13 $112.50 $208.13 $112 50 $208 13 $112.50 $208 13 $11233 $20791 $112.33 $207.91 $117.49 $214.36 $122.66 $220.81 $14296 $246 19 $148.24 $150.24 $5470 $104.70 $0.00 $50.00 $0.00 $50.00 50.00 $171.97 tAewTaxR $0.00 $60.17 $0.00 $63.44 $0 00 563.91 $0.00 $82.29 $000 $8229 $0.00 $82.29 $0.00 $82.29 $0.00 $82.29 $0.00 $82.29 $0.00 $82.90 $0.00 $67.20 $0.00 $208.13 $0.00 $208.13 $000 $208.13 50 00 $208 13 $0.00 $208.13 $000 $208.13 $000 $208.13 $0.00 $207.91 $0.00 $207 91 $0.00 $214.36 SO 00 $220.81 $000 $246.19 $198.24 $0.00 $104.70 $0.00 $50.00 $0.00 $50.00 $0.00 TOTAL BALANCE : $3,557.42 El VALUATION LAND BUILDINGS SALES PHOTOGRAPHS M8i PROPERTY CARD Statement Payment History Create PaymenttJ Tax Status Print Pay Taxes TAX INFORMATION 2024 24297243 0813112024 2023 24208937 0813112023 2022 2022-204904110200RP 0813112022 2021 0000053786 08/31/2021 2020 23432936 0813112020 2019 22429967 1011512019 2018 21310684 0912812018 2017 20394956 0813012017 2016 19262133 0913012016 2015 18345920 0210112016 2014 17484499 0813112015 2013 16939790 1210612014 2012 15556078 1013012013 2011 14541163 0610812013 2010 13564242 0913012012 2009 12717506 0613012012 2008 12146320 0112012012 2007 10950037 0811512011 2006 10067869 0211512011 2005 2005-5990291 0910112006 2004 2004-4372818 09/01/2005 2003 2003-3669841 0910112004 2002 2002-3000084 0910112003 2001 2001-2348664 0910112002 2000 2000-1710620 09/01/2001 1999 1999-1081827 0910112000 1998 1998-538273 09l01I1999 1997 1997-243363 09101/1998 Hospital St SER / Land Addenda PR0TYRE0OllOCP-PNQN1 oil 10OcELC 2.04104-110240 FIOCEL YEAR 0094 IVOCEL1100I1000: 9000 000011040 OIOSET a sF2/02025 Uoa4q: 0000 05 PIca. Neo014ator cN$0005: 0411412013 T SaDie: P0400000006 biped Ron 4 Gong 1 PIWIGS, OWPNEIH 04 OTHER Total 040 2101 05 Type. Seed sic lesson Mesas: P0 000 2520 rolalAon 0.062 55 VAR 55400Cr 61-0000611400105 50004 Sousa CI0015TIAOSTED, 5150622 Marc TM’loacsl 000001l06-14-2013 06010060 006100 STAlES Gaas iSa. 115 090usd Me 000054 %Tsaobm 05155e EL ssieeans 901406000 11005541000 i.e iSv. to. heed 04Pl Au.. 55-164 Rae 100151 06546: RtNNmiw leyFyIcot lot I P S 5 2100 0.06 N 61400 4.012 Ray H5st NN*N UpFokot Os.M Non Neet Pod Nan. Md FnNea: El 65114 Ne. 05505 liNda IIAnASu: OsctIyw MonyhOc 6405006 liFANsa: STIlLS: EgoSluc 00050640 Osaly 05611100000 FleiI5pt Yes Bit CasSRo CN*OIAC rod 15se: PdCoe000la 090554 P1010 EWTAC40014FOIWA500 100c0400 Mac toRso 55’ UsO MIs-I 0401-2 0-YR-ON Call 1143004 P1010 Cost 9010*NCE 059000 NAN OWEWNUA1’EACI55I000 255 1910 A A 406 .)aoielToNt 12404 PsbssToUl 12400 4009 010 Loisd 11500 04002 Hospital St SFR / Land Addenda S GOVERNMENT OF THE UNITEG STATES VIRGIN ISLANDS Tel: (340) 774-2991 OFFICE OF THE LIEUTENANT GOVERNOR Tel : (340) 773-6449 TAX COLLECTORS OFFICE TO WHOM ASSESSED IRCKE INFORMAT1OW PARCEL NUMBER: 2-04904-1102-00 INVOICE NUMBER: 24297243 FRANCIS, OMYNETH C S OTHER ACCOUNT NUMBER: 5092163901.2024 P0 BOX 2522 TAX YEAR: 2024 CHRISTIANSTED Vi 00822 TAX & COST $17197 UIUIUiIHIIItIH TOTALAMT PAID: $0.00 00822 TOTAL DUE: $171.97 DELINOUENT 08/31/2924 LEGAL DESCRIPTiON ACCOUNT TYPE: REAL MAP NUMBER: MAP BOOK: PAGE: SECTIONI: TOWNSHIPI: RANGEI: LOT DIMI: LOT DIM2: ACRES: 0.062 5/3 FT: 2,700 000 20-A HOSPITAL STREET MUN CODE MILL CODE SCH DIST TIE DIST EXMT CODE TOTAL LEVY. 0.00377 STXC RES GROSS EXAlT NET TOTAL TAX 0.00 0.00 0.00 ASSESSED VALUE: $12400.00 DRAINAGE 8110.77 PENALTY $5.00 LAND VALUE: $11,500.00 INTEREST 59.45 IMPROVEMENT VALUE: $900.00 TAX&COST $171.97 TOTAL MARKET VALUE: $12,400.00 PAY $171.97 ON OR BEFOREOZI28/2025 PROPERTY LOCATED AT 20-A HDSPITAL STREET HOSPITAL STREET Vi 00822 I THIS PROPERTY HAS UNRAID DEUNQUENT TAXES: $338545 I Hospital St SFR I Land Addenda December 19, 1997 DK OP GIFT No. 5804/1997 THIS DEED OF GIFT, made this .L1b day of ilj , 1997, by and between GWYNETH FRANCIS CIVIL, (“GRANTOR”), whose mailing address is P.O. Box 2522, Christiansted, St. Croix. U.S. Virgin Islands 0022, and the GOVERNMENT OF THE UNITED STATES VIRGIN ISLANDS, (“GRANTEE”) WITNESSETH, WHEREAS, Grantor desires to benefit the people of the U.S. Virgin Islands, Grantor has determined to contribute to Grantee certain real property situate in St. Croix, U.S. Virgin Islands; NOW, THEREFORE, Grantor, for and in consideration of the foregoing recitals, and other good and valuable considerations, receipt of which is hereby acknowledged, does by these presents hereby give, remise, release and forever quitclaim to Grantee, all of Grantor’s right, title, interest, claim and demand in that certain real property Situate in St. Croix, U.S. Virgin Islands, the same being more particularly known and described as; Lot No. 20-A Hospital Street Christiansted, St. Croix, Virgin Islands as per attached Measure Brief. C, TOGETHER WITH all Grantor’s interest in the improvements, tenements, hereditament5 and appurtenances ChereuntO belonging; -; SUBJECT to easements, restrictive covenants and: encumbrances of record. RESERVING, and excepting therefrom, however, tGRANTOR the full use, control, income, and possession of the described property for and during GRANTOR’S natural life. IN WITNESS WHEREOF, the GRANTOR has duly executed this instrument as of the date first above written. INWf/ ?WFRANCISCIQIL44l j Hospital St SFR I Land Addenda a DEED OF GIFT Geyneth Francis Civil ACKNOWLEDGMENT TERRITORY OP THE VIRGIN ISL3NDS DIVISION OF ST. CROIX ) SS. On this LZay of _________ 1997. before me personally caine and appeared GWYNETH’ FRANCIS CIVIL, to me known and known to rue to -be the person described herein and who executed the foregoing document, and she acknowledged to me that she signed the same freely end voluntarily for the uee and purpose therein contained. WITNESS my hand and official seal. NOTARY PUBLIC Accepted By: _______________________ Hcorab a Ro . Shneider, M.D. Governor he Virgin Islands cEETXFXCATh OF VAL1E IT IS HEREBY CERTIFIED that the value of the property in the foregoing instrument for recording and stamp purposes is nominal. For retording purpoces the tax assessed value of the property does not exceed $41,464.00. G H CIS CIVIL, GRAB’rOR /07 Hospital St SFR / Land Addenda e DEED OF GIFT Gwyneth Francis Civil CERTIFICATE OF TEE POELIC SURVEYOR IT IS REEBY CERTIFIO that, according to the records in the Office of the Public Surveyor, the property described in the foregoing instrument has not undergone any change in respect to boundary and area. Office of the Public Surveyor, Christiansted, St. Croix. By/ 4i idrso, ci SL Cidx,, Vi: iajds of lie U.S.A. S 108 Hospital St SFR / Land Addenda MEASURE-BRIEF For the Property Na. ,>/7 in the Town of en the Island of St. Croix, V.1.. U.S.A. -0------ THIS IS TO CERTIFY that the abovomenUoned lot, according to the Public Surveyor’s Records, has the following boundaries to the North 351 feet towards—’ /‘f’ ‘ to the South feet towards to the Bast feet towards ‘‘ )“‘ “°“ to the west feet towards The area a aua ui. 2 . Office of the Public Surveyor, Christiansted, St. Croix, 19— PLAN 7,cl _ fed esd Entered In R.cordeq’s Balk Inc tire DIalled 01 St Glob, ylrgi Itbands 01 Itt U.S.A. at Phopy__ Faga Ne. Q41LLfi,d inid in Real Property Rtgi f,____ This figure shows the general outline of the property as recorded in the recorda in the Office of the Public Surveyor. Fee:$ 0.00 Hospital St SFR / Land Addenda Addendum E Comparable Data Hospital St SFR / Land Land Sale Profile Sale No. 1 47 King Street Commercial, Retail 47 King Street St Croix, VI 00840 St Croix Sale Information Sale Price: Effective Sale Price: Sale Date: Sale Status: $/Acre(Gross): $/Land SF(Gross): $/Acre(Usable): $/Land SF(Usable): Property Rights: Financing: Conditions of Sale: Verification Type: $140,000 $140,000 07/15/2024 Closed $1,037,037 $23.81 $1,037,037 $23.81 Fee Simple Cash to seller Arms-length Secondary Verification Comments Sale of a relatively flat lot, one block east from the waterfront in Frederiksted. Occupancy Acres(Usable/Gross): Land-SF( Usable/Gross): Usable/Gross Ratio: Shape: Topography: Zoning Code: Flood Plain: Flood Zone Designation: Source of Land Info.: 0.14/0.14 5,881/5,881 1.00 Rectangular Level B-3 No x Public Records Location & Property Identification Property Name: Sub-Property Type: Address: City/State/Zip: County: Market Orientation: CBD IRR Event ID: 3323456 Occupancy at Time of Sale: 0.00% Improvement and Site Data II 47 King Street Land Sale Profile Sale No. 2 Location & Property Identification Property Name: 54-A Company Street Sub-Property Type: Commercial Address: 54-A Company Street City/State/Zip: Christiansted, VI 00820 County: St Croix Market Orientation: CBD IRR Event ID: 2976079 Sale Information Sale Price: Effective Sale Price: Contract Date: Listing Price: Listing Date: Sale Status: $/Acre(Gross): $/Land SF(Gross): Property Rights: Financing: Conditions of Sale: Verified By: Verification Date: Confirmation Source: Verification Type: Acres(Gross): Land-SF(Gross): Shape: Topography: Corner Lot: Zoning Code: $164,000 $164,000 04/17/2023 $174,900 04/01/2022 Closed $2,300,140 $52.80 Fee Simple All cash Arm s-I engt h Sarah Klink 02/17/2023 Stephen Swanton Confirmed-Seller Broker Flood Plain: Flood Zone Designation: Utilities: Source of Land Info.: Comments No x Electricity, Water Public, Sewer, Telephone Broker Zoning Desc.: Business Environmental Issues: No Occupancy Occupancy at Time of Sale: 0.00% Improvement and Site Data The property had been purchased in 5/7/2020 for $100,000. In discussions with the sellers broker, he did not know the buyers motivations but the seller was firm on the price. The broker indicated that there are ruins on the property and to alter the property in any way it has to be approved by the historical society. The owner of the property originally bought the property to develop it but was unable to because of the restrictions set by the historical society. He also indicated that there has been revitalization happening in the town of Christiansted which can contribute to the higher prices of properties II 0.07 3,106 Rectangular Level No B-i 54-A Company Street Land Sale Profile Sale No. 3 Location & Property Identification Property Name: 25 Hospital Street Sub-Property Type: Commercial Address: 25 Hospital Street City/State/Zip: Christiansted, VI 00820 County: Christiansted Market Orientation: CBD IRR Event ID: 2976064 Sale Information Sale Price: Effective Sale Price: Sale Date: Contract Date: Listing Price: Listing Date: Sale Status: $/Acre(G ross): $/Land SF(Gross): Grantor/Seller: Property Rights: Financing: Conditions of Sale: Verified By: Verification Date: Confirmation Source: Verification Type: Acres(Gross): Land-SF(Gross): Shape: Topography: $99,000 $99,000 09/29/2021 07/15/2021 $99,000 07/13/2021 Closed $1,352,459 $31.03 Bartner 2012 Trust Fee Simple All cash Arms-length Sarah Klink 02/17/2023 Stephen Swanson Confirmed-Seller Broker Corner Lot: Zoning Code: Zoning Desc.: Environmental Issues: Flood Plain: Flood Zone Designation: Utilities: No B-i Business No Yes AE Electricity, Water Public, Sewer, Telephone Broker A Source of Land Info.: Comments Occupancy Occupancy at Time of Sale: 0.00% Improvement and Site Data The broker for the sale believes the property should have been listed at a higher price. The buyer was motivated because he owns the property directly next to the subject and the property went under contract immediately. The broker indicated that there are ruins on the property and to alter the property in any way it has to be approved by the historic society. He also indicated that there has been revitalization happening in the town of Christiansted which can contribute to the higher prices of properties. M LS-21-1160 II 0.07 3,190 Rectangular Level 25 Hospital Street Land Sale Profile Sale No.4 Location & Property Identification Property Name: Plot 19 King Street Sub-Property Type: Commercial Address: Plot 19 King Street City/State/Zip: Town of Christiansted, VI 00820 County: St. Croix Market Orientation: Rural IRR Event ID: 2705232 Sale Information Sale Price: Effective Sale Price: Sale Date: Recording Date: Contract Date: Listing Price: Listing Date: Sale Status: $/Acre(Gross): $/Land SF(Gross): Grantor/Seller: Grantee/Buyer: Assets Sold: Property Rights: % of Interest Conveyed: Exposure Time: Financing: Document Type: Recording No.: Verified By: Verification Date: Confirmation Source: Verification Type: $125,000 $125,000 07/03/2021 08/11/2021 01/14/2021 $179,000 06/21/2020 Closed $741,400 $17.02 Beta ncourt Green Gecko Real estate only Fee Simple 100.00 13 (months) Cash to seller Deed 2021002901 Dirks Mathias 09/20/2021 Cindy Devlin Confirmed-Buyer Broker Acres(Gross): Land-SF(Gross): Shape: Topography: Corner Lot: Zoning Code: Zoning Desc.: Environmental Issues: Flood Plain: Flood Zone Designation: Comm. Panel No.: Date: Utilities: Utilities Desc.: Source of Land Info.: 0.17 7,343 Rectangular Level No B-2 Business - Secondary No No x 7800000071 04/16/2007 Electricity Private Required, Municipal available Public Records Improvement_and Site Data Legal/Tax/Parcel ID: 2-04903-2105-00 El Comments Arms-length transaction. The subject property is a parcel of vacant land in the heart of Christiansted. The property has level topography and is located outside of a flood zone. Plot 19 King Street Addenda Addendum F Engagement Letter Hospital St SFR / Land jij Addenda 6500 Red Kook Plaza, Suite 205 St. Thonas, VI 00802 US Virgin 151afl45 Department of Property and Procurement 8201 Sub Base, Third Floor St. Thomas, U.S. Virgin Islands 00802 Subject: 20-A Hospital Street Christiansted, StCroix US Virgin Islands Dear Mr. Harris: T 340-714-7325 TE 844-952-7304 jandrew5lirr.con1 www.irr.com I hereby refer to the attached Engagement Request outlining the requested scope of work for the completion of the appraisal of the referenced property. We hereby acknowledge that we can perform the assignment according to your requested scope of work for a fee of in 3 weeks. Thank you for this opportunity to be of service and we look forward to working with you. Integra Realty Resourcm Caribbean January 30, 2025 Mr. William Harris QUOTATION Sincerely, INTEGRA REALlY REsouRcEs — CARIBBEAN James V. Andrews, MAI, CRE, ASA, FRICS Senior Managing Director Vincent Richards, Assistant Commissioner Signature Printed Name Dept of Property & Procurement Acceptance 1/30/2025 Date El Hospital St SER / Land