Appraisal Report Lovejoy Fehnel

APPRAISAL REPORT
Valuation Impacts of Conversion of Penguin Hall

to a Drug and Alcohol Recovery Center
Abutting 54 Grapevine Road
and Across From 31 Essex Street
Wenham, Essex County, Massachusetts
Mrs. Joan Lovejoy and
Mr. David Fehnel and Ms. Andrea Gabriel
c/o Mr. Jere Moroney
116 Grapevine Road
Wenham, Massachusetts
March 8, 2015
VALUATION & ADVISORY SERVICES
33 Arch Street
Boston, MA 02110
Webster A. Collins, MAI, CRE, FRICS
Executive Vice President/Partner
T (617) 912-7000
F (617) 912-6901
www.cbre.com
March 10, 2015

Mrs. Joan Lovejoy
116 Grapevine Road
RE:
Valuation Impacts of Conversion of 36 Essex Street to

Drug and Alcohol Recovery Center abutting
54 Grapevine Road and 31 Essex Street
Dear Mr. Moroney:

At your request and authorization, CBRE has prepared an appraisal of the impact on the referenced
property by the conversion of 36 Essex Street in Wenham, Massachusetts to a drug and alcohol
recovery center. Our analysis is presented in the following Appraisal Report.
The starting point in the valuation process is identification of the appraisal problem:
Regardless of whether the appraisal report is written or oral, it leads the reader from
the definition of the appraisal problem through the analysis and relevant descriptive
data to a specific conclusion.
THE VALUATION PROCESS

Step 1: Identification of the Problem
Identify client and
Intended Users
Identify the Intended

Use
Identify the Purpose

Identify the Relevant
Assignment Conditions
Identify the Effective
of the Assignment
Characteristics of
Date of the Opinion
(Type of Value)
the Property
Extraordinary Hypothetical
Assumption
Conditions
Source: The Appraisal of Real Estate, Published by the Appraisal Institute, Chicago, IL, 13th Edition P. 567
Identity of the Client:
Mrs. Joan Lovejoy

The Appraisal of Real Estate, Published by the Appraisal Institute, Chicago, IL, 14th Edition P. 649
The Appraisal of Real Estate, Published by the Appraisal Institute, Chicago, IL, 14th Edition P. 37
Mr. Jere Moroney

March 10, 2015
Page 2
Intended Use and Users:
All parties involved with the private pay substance

abuse recovery facility proposed at 36 Essex Street.
Type of Value:
Market Value
Effective Date of the Opinion:
March 8, 2015 the date of property inspection.
RELEVANT CHARACTERISTICS OF THE PROPERTY

The consideration of environmental forces along with social, economic and
governmental forces is fundamental to the appraisal of real property. Although
appraisal literature has long recognized environmental forces as major determinants
of value, the focus has been on the consideration of climatic conditions, topography
and soil, the surrounding neighborhood, accessibility, and proximity to points of
attraction. These environmental forces are readily apparent to a member of the
3
general public who is not specifically trained as an expert in observing these forces.
54 Grapevine Road and 31 Essex Street are estate properties located approximately 19 miles north
east of Downtown Boston. They are located at the eastern end of Wenham near the Hamilton town
line. 54 Grapevine Road contains 34.3 acres of land improved with a 1968 built single family
residence, garage, barn and pool house in a private setting. 31 Essex Street contains 7.4 acres of
land improved with a 2007 built estate home with 8,280 square feet of gross living area. This
property was purchased by its current owners on November 12, 2008 at a price of $3,150,000.
Hamilton/Wenham is part of the prestigious Hamilton/Wenham/Topsfield/Ipswich/Essex/Manchesterby-the-Sea area. This is referenced as the North Shore and is the equivalent of Philadelphias Main
Line north of Boston. This locale is zoned predominantly residential with a number of high value
large lot, estate type properties which set the pattern, tone and points of attraction.
In the valuation of real estate, the principle of balance is a critical component in the valuation
equation:
The principle of balance holds that real property value is created and sustained when
4
contrasting, opposing, or interacting elements are in a state of equilibrium.
Known as Penguin Hall, 36 Essex Street is an estate containing 48 acres of land. The property has a
prior use as an office building by Mullen Advertising under a special permit. The building is large and
contains 105,000 square feet.
Massachusetts Highway Department, Right of Way Bureau Policy and Planned Methodology Workshop Manual, January
12, 1995
The Appraisal of Real Estate, Published by the Appraisal Institute, Chicago, IL, 14th Edition, P. 31
Mr. Jere Moroney

March 10, 2015
Page 3
Interview of market participants in Wenham indicates light usage and nominal, if any impact on the
town of Wenham by Mullens office use. The planned change of use elevates the level of services
within the structure. The March 1, 2015 article in Section B of the Philadelphia Inquirer featuring
RCAs plans suggests within Pennsylvania alone, clinics proposed by the developer will be averaging
over 865 patients per year. A far more intense use than by Mullen Advertising.
The planned change of use is for a 158-219 bed rehabilitation and recovery center planned as part
of a startup called Recovery Center of America. 54 Grapevine Road abuts to the west. The Sisters of
Notre Dame abut to the north, and to the east 31 Essex Street is across the street from the entrance of
36 Essex Street.
The principle of balance is maintained until a nuisance is introduced into a market area. Nuisance is
a defined real estate term:
NUISANCE: a land use whose associated activities are incompatible with surrounding
land uses.
Example: Zoning laws and private deed restrictions are used to prevent the
development of nuisances, such as:
Activities that produce noxious fumes or air pollution in residential areas
Commercial uses that generate large volumes of automobile traffic in residential

areas
Junkyards in highly visible areas
Activities considered socially offensive, such as sale of pornographic materials, in

5
residential areas.
The Town of Wenham Zoning Bylaw recognizes the importance of compatibility of uses when it states
that, in the Residence Districts, only single-family residences are permitted as of right and commercial
enterprises and lodging houses, for example, are not permitted either by right or by special permit.
Further, the Bylaw appreciates the broader issue of limiting nuisance in its Purpose section, which
reads, in pertinent part: These regulations are enacted to protect the health, safety and quality of
life of [the Towns] inhabitants; encourage the most appropriate use of land throughout the Town;
[and] preserve the cultural, historical, aesthetic, environmental awareness and agricultural heritage of
the community. 6
Zoning ordinances are purposely created to define how property may be used. In this case, the zoning
ordinances call for a residential use without reservation or recourse.
When these tests fail, stigma is created:
Dictionary of Real Estate Terms, Published by Barrons, 7th Edition, P.335-336
BOS 47579340v1
Mr. Jere Moroney

March 10, 2015
Page 4
STIGMA: an adverse public perception regarding a property; the identification of a
property with a conditions that exacts a penalty on the marketability of the property
7
and may also result in a diminution in value.
METHODOLOGY
The methodology to be employed to determine diminution in value is as follows:
The difference between the unimpaired and impaired values of the property being
appraised. 8
VALUE UNIMPAIRED
Unimpaired, the properties fit into the fabric of Hamilton-Wenham. 31 Essex Street is newly built. On
January 13, 2015, the property was appraised by Richard Bright, a Massachusetts certified residential
appraiser for refinancing of the mortgage placed on the property when purchased. The appraised
value was $3,200,000. The potential of the conversion to a drug and alcohol recovery center was not
known at date of appraisal. There is no mention under market condition highlighted in the report.
54 Grapevine Road has been appraised by CBRE as of March 8, 2015. The CBRE appraisal is
prepared under the hypothetical condition that the proposed drug and alcohol recovery center was
not in the approval process. CBRE has appraised the property at $2,520,000.
VALUE IMPAIRED
The impairment is caused by the location of the equivalent of a conflicting use in a residential area.
Combined, these issues are factors in determination of adverse public perception which would be
considered detrimental or offensive under zoning. The imposition of the drug and alcohol recovery
center is akin to the imposition of a Chapter 40B project in a private residential area, though with
potentially additional adverse impacts stemming from the ongoing influx of hundreds of new patients
each year with each patient staying for a duration of up to 60 days. Marketability of property is
impacted and properties may sell for less than assessed values.
In CBREs analysis, 12 properties were studied which contained residential drug and alcohol recovery
centers. In this case, the property chosen for paired sales analysis was 165 Woods Hole Road in
Falmouth, Massachusetts. The reasons are:
A location in a prestigious setting
Dictionary of Real Estate Appraisal, Published by the Appraisal Institute, Chicago, IL, 5th Edition P.187
Uniform Standards of Professional Appraisal Practice
Mr. Jere Moroney

March 10, 2015
Page 5
An estate home
Length of operation since 2007 provides a basis for analysis.
Availability of unimpaired and impaired sales data
Residential drug and alcohol recovery centers have been identified through internet research. Two
were located in the Springfield market. Two were in the New Bedford market. Two were in Worcester,
two were located in the cities of Boston and Waltham. These were eliminated because of dissimilar
settings with 165 Woods Hole Road chosen as the most comparable property. This property is known
as the Gosnold-Miller House.
CBRE conducted multiple pairings in deriving its conclusion:
163 Woods Hole Road which abuts paired with 90 and 96 Woods Hole Road, .4 miles away
which sold within 2 months of date of this sale
46 McCallum Drive which sits below Miller-Gosnold to the rear and abuts, paired with 4
Stonewall Lane .68 miles away which sold within 1 month of date of this sale
164 Woods Hole Road directly across the street paired with 31 Katy Hatch Road .5 miles
away which sold 5 months earlier
16 Quisset Circle second abutter paired with 59 Cumloden Drive .5 miles away which sold
in the same month as this sale
Based on our study, CBRE has concluded that in its expert opinion, in confirmation of public
perception, a 22% diminution in value exists. A 22% dimunition in value is supported by documented
data based on change in property values involving sites close to Gosnold Miller House as compared
with sales in the time period further distant from the Gosnold Miller House.
Data, information, and calculations leading to the value conclusion are incorporated in the report
following this letter. The report, in its entirety, including all assumptions and limiting conditions, is an
integral part of, and inseparable from, this letter.
Mr. Jere Moroney

March 10, 2015
Page 6
The following appraisal sets forth the most pertinent data gathered, the techniques employed, and the
reasoning leading to the opinion of value. The analyses, opinions and conclusions were developed
based on, and this report has been prepared in conformance with, our interpretation of the guidelines
and recommendations set forth in the Uniform Standards of Professional Appraisal Practice (USPAP),
the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice
of the Appraisal Institute. It also conforms to the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (FIRREA) and Title XI Regulations.
CBRE hereby expressly grants to Client the right to copy this report and distribute it to other parties in
the proposed transaction for which this report has been prepared. It has been a pleasure to assist you
in this assignment. If you have any questions concerning the analysis, or if CBRE can be of further
service, please contact us.
Respectfully submitted,
CBRE - VALUATION & ADVISORY SERVICES
Webster A. Collins
Executive Vice President/Partner
MA Cert. Gen. Appraiser Lic. #265
Phone:
Fax:
Email:
617-912-6960
617-912-6901
Webster.Collins@cbre-ne.com
54 GRAPEVINE ROAD AND 31 ESSEX STREET | C ERTIFICATION OF THE A PPRAISAL
CERTIFICATION OF THE APPRAISAL

We certify 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 or bias with respect to the property that is the subject of
this report and have no personal interest in or bias with respect to the parties involved with this
assignment.
4. Our engagement in this assignment was not contingent upon developing or reporting predetermined
results.
5. 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.
6. This appraisal assignment was not based upon a requested minimum valuation, a specific valuation,
or the approval of a loan.
7. 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 the requirements
of the State of Massachusetts.
8. 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
Appraisal Practice of the Appraisal Institute.
9. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its
duly authorized representatives.
10. As of the date of this report, Webster A. Collins, MAI, CRE, FRICS has completed the continuing
education program of the Appraisal Institute.
11. As of the date of this report, Webster A. Collins, MAI, CRE, FRICS has completed the Standards and
Ethics Education Requirement of the Appraisal Institute for Associate Members.
12. Webster A. Collins, MAI, CRE, FRICS has made a personal inspection of the property that is the subject
of this report.
13. Jacqueline Downey and John Costello provided significant real property research assistance to the
person signing this report.
14. Valuation & Advisory Services operates as an independent economic entity within CBRE. Although
employees of other CBRE divisions may be contacted as a part of our routine market research
investigations, absolute client confidentiality and privacy were maintained at all times with regard to
this assignment without conflict of interest.
15. Webster A. Collins, MAI, CRE, FRICS has not provided any real estate related services on this property
in the three years prior to accepting this assignment.
54 GRAPEVINE ROAD AND 31 ESSEX STREET | C ERTIFICATION OF THE A PPRAISAL

MA Cert. Gen. Appraiser Lic. #265
ii
54 GRAPEVINE ROAD AND 31 ESSEX STREET | S UBJECT P HOTOGRAPHS
SUBJECT PHOTOGRAPHS
AERIAL VIEW
PENGUIN HALL IS IN THE CENTER OF THE AERIAL WITH 54 GRAPEVINE ROAD TO THE LEFT AND
31 ESSEX STREET TO THE RIGHT
iii
36 ESSEX STREET
36 ESSEX STREET
31 ESSEX STREET STAIRCASE
31 ESSEX LIVING ROOM
MASTER BEDROOM
SECOND FLOOR HALL
iv
31 ESSEX FAMILY ROOM
31 ESSEX 3 CAR GARAGE
31 ESSEX FRONT ENTRANCE
54 GRAPEVINE FRONT ENTRANCE
54 GRAPEVINE 3 CAR GARAGE
GARAGE APARTMENT
v
ENTRANCE HALL
LIBRARY
LIVING ROOM
FAMILY ROOM
ENTRY
DINING ROOM
vi
54 GRAPEVINE ROAD AND 31 ESSEX STREET | S UMMARY OF S ALIENT F ACTS
SUMMARY OF SALIENT FACTS
EXTRAORDINARY ASSUMPTIONS AND HYPOTHETICAL CONDITIONS

Yes, the approval of the proposed alcohol and drug rehabilitation center.
vii
54 GRAPEVINE ROAD AND 31 ESSEX STREET | T ABLE OF C ONTENTS
TABLE OF CONTENTS
CERTIFICATION OF THE APPRAISAL .......................................................................................... i
SUBJECT PHOTOGRAPHS ....................................................................................................... iii
SUMMARY OF SALIENT FACTS .................................................................................................. v
TABLE OF CONTENTS ............................................................................................................. vi
INTRODUCTION .................................................................................................................... 1
AREA ANALYSIS ....................................................................................................................... 4
NEIGHBORHOOD ANALYSIS ................................................................................................. 13
MARKET ANALYSIS ................................................................................................................ 16
SITE ANALYSIS ...................................................................................................................... 21
HIGHEST AND BEST USE ....................................................................................................... 22
IMPROVEMENTS ANALYSIS .................................................................................................... 24
APPRAISAL METHODOLOGY ................................................................................................. 25
SALES COMPARISON APPROACH .......................................................................................... 26
RECONCILIATION OF VALUE ................................................................................................ 30
ASSUMPTIONS AND LIMITING CONDITIONS ......................................................................... 32
ADDENDA
A Assessor Cards
B 31 Essex Street January 13, 2015 Appraisal
C Qualifications
viii
54 GRAPEVINE ROAD AND 31 ESSEX STREET | I NTRODUCTION
INTRODUCTION
The property under study involves two single family residential houses located at 54 Grapevine Road
and 31 Essex Street in Wenham, Essex County, Massachusetts.
History/Ownership
The 31 Essex Street property was purchased by David J. Fehnel and Andrea Gabriel on November 12,
2008 at a confirmed price of $3,150,000. The sale is recorded in book 28147 on page 275. 54
Grapevine Road was constructed by Joseph Lovejoy in 1983 on land previously purchased.
RELEVANT DATES
The following table illustrates the various dates associated with the valuation of the subject properties.
PURPOSE OF THE APPRAISAL

The purpose of this appraisal is to estimate the market value of the subject properties. The current
economic definition of market value agreed upon by agencies that regulate federal financial
institutions in the U.S. (and used herein) is as follows:
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
9
creative financing or sales concessions granted by anyone associated with the sale.
TERMS AND DEFINITIONS
The Glossary of Terms in the Addenda provides definitions for additional terms that are, and may be
used in this appraisal.
INTENDED USE AND USER OF THE REPORT
This appraisal is to be used by all parties involved with the proposed Penguin Hall Drug and Alcohol
Recovery Center.
SCOPE OF WORK
The scope of the assignment relates to the extent and manner in which research is conducted, data is
gathered and analysis is applied, all based upon the following problem-identifying factors stated
elsewhere in this report:
Client
Intended use
Intended user
Type of opinion
Effective date of opinion
Relevant characteristics about the subject
Assignment conditions
This appraisal of the subjects has been presented in the form of an Appraisal Report, which is
intended to comply with the reporting requirements set forth under Standards Rule 2-2(a) of the
USPAP. That is, this report incorporates a summary of all information significant to the solution of the
appraisal problem. It also includes summary descriptions of the subjects and the market for the
subject types. CBRE completed the following steps for this assignment:
Extent to Which the Property is Identified
CBRE collected the relevant information about the subject properties from the owner (or property
occupant), public records and through an inspection of the subjects. The properties were legally
identified through their postal addresses. Economic characteristics of the subjects were identified via
an analysis of the market, analysis of traffic/residential factors, analysis of visual residential factors,
analysis of noise/residential factors.
Office of Comptroller of the Currency (OCC), 12 CFR Part 34, Subpart C Appraisals, 34.42 (g); Office of Thrift
Supervision (OTS), 12 CFR 564.2 (g); Appraisal Institute, The Dictionary of Real Estate Appraisal, 4th ed. (Chicago: Appraisal
Institute, 2002), 177-178. This is also compatible with the RTC, FDIC, FRS and NCUA definitions of market value as well as
the example referenced in the Uniform Standards of Professional Appraisal Practice (USPAP).
Extent to Which the Property is Inspected

CBRE inspected both the interior and exterior of the subjects, as well as its surrounding environs. This
inspection included inspection of each room in the house. The exterior inspection consisted of walking
the lot.
Type and Extent of the Data Researched
CBRE reviewed the micro and/or macro market environments with respect to physical and economic
factors relevant to the valuation process. This process included interviews with regional and/or local
market participants, available published data, and other various resources. CBRE also conducted
regional and/or local research with respect to applicable tax data, zoning requirements, traffic
reports/expect reports, demographics, research of methodology/memoranda in town records.
Type and Extent of Analysis Applied
CBRE analyzed the data gathered through the use of appropriate and accepted appraisal
methodology to arrive at a probable value indication via each applicable approach to value. The
steps required to complete each approach are discussed in the methodology section. CBRE then
correlated and reconciled the results into a reasonable and defensible value conclusion, as defined
herein. A reasonable exposure time associated with the value estimate presented has also been
considered.
SPECIAL APPRAISAL INSTRUCTIONS
There have been no special appraisal instructions for this assignment.
54 GRAPEVINE ROAD AND 31 ESSEX STREET | A REA A NALYSIS
AREA ANALYSIS
The dynamic nature of economic relationships within a market area has a direct bearing on real
estate values and the long-term quality of a real estate investment. In the market, the value of a
property is not based on the price paid for it in the past or the cost of its creation, but on what buyers
and sellers perceive it will provide in the future. Consequently, the attitude of the market toward a
property within a specific neighborhood or market area reflects the probable future trend of that area.
Since real estate is an immobile asset, economic trends affecting its location quality in relation to
other competing properties within its market area will also have a direct effect on its value as an
investment. To accurately reflect such influences, it is necessary to examine the past and probable
future trends, which may affect the economic structure of the market and evaluate their impact on the
market potential of the subject.
GEOGRAPHICAL LOCATION
The subject property is located in the Town of Wenham, in Essex County on Bostons North Shore.
Wenham is bordered by Manchester-by-the-Sea on the east, Topsfield on the west, Hamilton on the
north, and Beverly on the south. The town is about 16 miles north of Downtown Boston.
Wenham is most influenced by trends impacting the Boston Metropolitan area. The Boston
metropolitan area consists of over 100 cities and towns reaching I-495 which circles Essex County to
the north.
4
REGIONAL OVERVIEW
Economy.com
Economy.com provides the following Boston Metropolitan area economic summary as of September
2014. The full Economy.com report is presented in the addenda.
Recent Performance. Boston-Quincy is expanding. Total employment growth is on par with the
national average, with above-average gains in education/healthcare leading the way. Additionally,
financial services have begun to rise for the first time since 2006, though they remain well below the
prerecession level. The labor force is rising steadily, in contrast with weak national performance, the
only reason the unemployment rate ticked up slightly to 5.5%. House prices have risen sharply in
recent months.
Universities and hospitals. Education/healthcare will remain the primary driver of economic growth.
Payrolls are up at twice the national pace year over year and have recently been accelerating.
Improved finances at local universities have allowed for the prospect of hiring. For example, Boston
University just reported revenue growth of 3% during its most recent fiscal year, tuition collection
topped the $1.2 billion threshold for the first time in school history, and the endowment increased by
nearly 16% year over year. Moreover, the largest hospitals have recovered from a difficult fiscal 2013,
reporting gains in operating revenues. Some are investing in orthopedics, cardiovascular programs,
and general surgery, creating more jobs in the industry.
Housing. The housing market will expand further over the coming year. According to CoreLogic data,
single-family house prices are up more than 12% year over year in recent months, about twice the
national average. Above-average levels and growth rates of personal income and low inventories are
the main drivers behind the price surge. The booming housing market has raised optimism in the real
estate investment community, and local authorities have released a new housing plan that calls for a
supply of 53,000 units to meet the rising demand in the next 16 years. The Board of Directors for the
5
Boston Redevelopment Authority and Economic Development Industrial Corp. recently approved four
projects to help future development of the Boston Marine Industrial Park and energy planning in the
city, with a combined $292 million of investments and almost 500,000 square feet of new
construction, estimated to create 1,600 jobs.
Financial services. Financial services will continue to improve, but it will be a long time before
employment in the industry returns to its prerecession level. Payrolls started to pick up in the second
quarter this year and are expected to increase in the near term. Fidelity, among the largest financial
companies in the area, recently reported record first half revenues in some of its businesses. A number
of smaller financial companies have gained momentum too. OpenView Venture Partners has raised
$250 million, and plans to invest its capital to support growth-stage software companies. Quantopian,
a new startup that developed its browser-based system to facilitate automated stock trades, has raised
funds to start its own hedge fund. All these investments will help to improve the outlook in financial
services.
Boston-Quincys economy will continue to expand in the near term, with employment increasing at
close to the national average. Strengthening in the housing market, education/healthcare, and high
tech will be the primary drivers. In the long run, although the role of financial services is diminishing,
that will not limit expansion, as the metro area will benefit from high-skilled labor force and research
universities, and will also maintain its significant income advantage over most of the country.
New England Economic Partnership
Twice a year, the New England Economic Partnership (NEEP), a consortium of regional economists
and business leaders, publishes an economic forecast. The most recent forecast was presented in
October 2014 by Alan Clayton-Matthews, Associate Professor, School of Public Policy and Urban
Affairs, and Economics Department at Northeastern University. The major conclusions are
summarized below:
According to estimates from MassBenchmarks, Massachusetts real gross domestic product

declined at a 2.1% annual rate in the first quarter of this year, and grew at a 4.7% rate in the
second quarter.
Both national and Massachusetts job growth has accelerated slightly over the last 12 months
ending in August.
Total nonagricultural employment is projected to grow 5.6% over the forecast period, between
the first quarter of this year and the fourth quarter of 2018. This represents an annual rate of
growth of 1.1%.
Growth is expected to accelerate modestly through the beginning of 2016, with payroll
employment growing 1.7% in 2015 and 2016; and then slow due to a demographic slowdown
in labor force growth, with payroll employment growing only by 0.2% in 2018.
The unemployment rate, currently at 5.8% in August, is expected to fall modestly to 5.3% by
the end of 2018, as the growing economy pulls people back into the labor force and prevents
the unemployment rate from falling faster.
Over the forecast period, jobs in professional and business services are expected to grow
14.2%, over twice the rate of overall employment. The next fastest growing sector will be
construction, where employment is projected to expand by 7.7%. Job growth will be slowest in
manufacturing and in government, which are expected to grow by only 1.5% and 0.9%
respectively.
The residential housing market is slowly on its way back. Price appreciation will average 2.1%
per year, with the pre-crash price peak being reached in mid-2018. The annual rate of sales
will grow, but not reach pre-crash levels. Annual housing permits are expected to approach
pre-recession levels by mid-2016.
Massachusetts faces two broad economic development issues in the coming years: 1) the
demographic challenge of an aging population and shrinking workforce and 2) poverty and
inequality.
Insufficient public investment in physical and human capital has contributed to the problem.
Public investments in transportation infrastructure and in targeted quality early-education
programs could boost jobs and reduce inequality and poverty.
Source: Massachusetts Economic Outlook, New England Economic Project, October 2014.
REGIONAL DEMOGRAPHICS
POPULATION
The following statistics are available through the U.S. Census Bureau. Projections are based upon the
2000 census. Historical population statistics for Wenham, as well as Essex County and the
Commonwealth of Massachusetts are summarized as follows.
The preceding statistics show an increase in population for the Town of Wenham, Essex County and
Massachusetts. By the year 2019, the population of Wenham is expected to be 5,403, which is an
increase of approximately 52 persons per year over the next five years.
TRANSPORTATION
Wenham is situated in the Greater Boston Area, which has excellent rail (from Hamilton), air and
highway facilities. Route 97 travels through town and leads to Topsfield. The town can also be
accessed via Exit 20B along Route 128 and Exit 17 at Wenhams eastern corner with Manchester-bythe-Sea. Route 1A leads to the center of town and on to South Hamilton and Ipswich.
The North Station to Rockport Massachusetts Bay Transportation Authority's (MBTA) commuter rail is
on the Hamilton town line. The station is known as the Hamilton Wenham station.
International air service is provided by Logan International Airport. In 2007, Boston Logan served
28,102,455 passengers - a new airport record handled 399,537 flights and moved 632 million
pounds of cargo, mail and express packages. New Englands largest transportation center, the airport
boundary encompasses approximately 2,400 acres in East Boston, Massachusetts. Logan ranks 19th
in the nation in passenger volume and 16th in flight movements based on Airports Council
International survey of top 50 airports. Logan employs about 12,000 workers and stimulates the New
England regional economy by approximately $7 billion per year.
GOVERNMENT
Each incorporated city and town within the Commonwealth of Massachusetts has its own zoning
ordinances and building codes. New development, expansion, and/or renovation is overseen by the
Planning Department and Building Department, with input from all the relevant municipal departments
such as the Board of Health, Engineering, Water, Fire, and Conservation Commission. There are
many types of zoning in the Town of Wenham regulating residential, commercial, and industrial uses.
The town offers a full range of services, including a full time police and fire department, public library,
and public school system. Utilities are provided by the municipality throughout the community. Gas
and electricity are provided by National Grid and NStar. Water and sewer are provided by a
municipal department. Telephone service is provided throughout the community and is supplied by
private companies.
ECONOMIC & EMPLOYMENT TRENDS
The economic diversification of greater Boston is one of the area's most significant assets.
Diversification supports resistance to sharp economic recessions and allows quick responsiveness in
periods of expansion.
Boston-Cambridge-Quincy, MA-NH Metropolitan NECTA Employment: Annual Averages 2000-2013 (000's)

2000
2,541.7
297.2
96.7
74.4
375.2
191.7
1,108.2
301.5
Total Employment
Manufacturing
Construction
Transportation/Utilites
Trade
F.I.R.E
Services
Government
2001
2,538.2
286.0
103.1
72.5
372.1
195.5
1,109.1
303.0
2002
2,469.4
255.6
104.1
67.7
365.4
191.9
1,097.8
301.5
2003
2,414.7
237.6
100.4
65.9
360.5
186.6
1,088.1
297.4
2004
2,409.5
230.3
100.6
63.5
359.5
183.2
1,104.4
293.1
2005
2,429.6
226.5
101.3
62.0
359.2
186.2
1,124.5
294.9
2006
2,457.7
223.3
101.9
61.3
358.3
188.4
1,151.9
297.2
2007
2,492.4
221.5
99.7
62.3
256.7
189.1
1,188.0
299.4
2008
2,505.9
216.2
96.3
62.4
354.8
186.1
1,210.5
303.5
2009
2,427.3
197.9
81.2
60.2
338.0
178.5
1,193.1
304.7
2010
2,438.7
194.4
78.0
60.3
338.3
173.9
1,215.2
305.2
2011
2,469.6
194.1
80.4
60.8
341.7
172.9
1,244.3
301.8
2012
2,512.9
193.7
84.0
60.8
344.1
172.5
1,279.9
302.3
2009
-2010
0.5%
-1.8%
-3.9%
0.2%
0.1%
-2.6%
1.9%
0.2%
2010
-2011
1.3%
-0.2%
3.1%
0.8%
1.0%
-0.6%
2.4%
-1.1%
2011
-2012
1.8%
-0.2%
4.5%
0.0%
0.7%
-0.2%
2.9%
0.2%
2012
-2013
1.6%
-0.1%
5.8%
1.5%
1.1%
0.0%
2.5%
-0.1%
2013
2,554.0
193.5
88.9
61.7
347.9
172.5
1,312.3
302.1
Compounded
Annual Change
(2000-2013)
0.04%
-3.25%
-0.64%
-1.43%
-0.58%
-0.81%
1.31%
0.02%
Boston-Cambridge-Quincy, MA-NH Metropolitan NECTA Employment: Annual % Change 2000-2013 (000's)

2000
-2001
-0.1%
-3.8%
6.6%
-2.6%
-0.8%
2.0%
0.1%
0.5%
Total Employment
Manufacturing
Construction
Trade
F.I.R.E
Services
Government
2001
-2002
-2.7%
-10.6%
1.0%
-6.6%
-1.8%
-1.8%
-1.0%
-0.5%
2002
-2003
-2.2%
-7.0%
-3.6%
-2.7%
-1.3%
-2.8%
-0.9%
-1.4%
2003
-2004
-0.2%
-3.1%
0.2%
-3.6%
-0.3%
-1.8%
1.5%
-1.4%
2004
-2005
0.8%
-1.7%
0.7%
-2.4%
-0.1%
1.6%
1.8%
0.6%
2005
-2006
1.2%
-1.4%
0.6%
-1.1%
-0.3%
1.2%
2.4%
0.8%
2006
-2007
1.4%
-0.8%
-2.2%
1.6%
-28.4%
0.4%
3.1%
0.7%
2007
-2008
0.5%
-2.4%
-3.4%
0.2%
38.2%
-1.6%
1.9%
1.4%
2008
-2009
-3.1%
-8.5%
-15.7%
-3.5%
-4.7%
-4.1%
-1.4%
0.4%
Boston-Cambridge-Quincy, MA-NH Metropolitan NECTA Employment: Monthly Average 2013-2014 (000's)
Jan-13
2493.6
192.6
80.5
60.0
346.1
170.9
1268.5
300.8
Total Employment
Manufacturing
Construction
Trade
F.I.R.E
Services
Government
As a %
of Total
Employ.
100.0%
7.7%
3.2%
2.4%
13.9%
6.9%
50.9%
12.1%
Jan-14
2531.1
192.9
81.5
60.8
351.4
170.6
1294.9
301.9
As a %
of Total
Employ.
100.0%
7.6%
3.2%
2.4%
13.9%
6.7%
51.2%
11.9%
%
Change
1.5%
0.2%
1.2%
1.3%
1.5%
-0.2%
2.1%
0.4%
Source: Departments of Career Services and Unemployment Assistance, Commonwealth of Massachusetts
Number of Employees
(000's)
Total Employment Trends
2,600.0
2,550.0
2,500.0
2,450.0
2,400.0
2,350.0
2,300.0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Year
The latest statistics available show signs of growth, with an increase of 1.5% over past year. In
addition, all employment sectors have experienced increases in employment over the past year, except
the F.I.R.E. sector. Services showed the greatest amount of growth with a 2.1% increase over last year.
Major employers within the area include Massachusetts General Hospital, Stop & Shop Cos. Inc., The
University of Massachusetts, and Steward Health Care System.
10
Listed below are the Massachusetts ten largest private employers:

Top Ten Employers in the Boston Metropolitan Area
E mployer
1
2
3
4
5
6
7
8
9
10
Massachusetts General Hospital

Stop & Shop Supermarket Co. LLC
The University of Massachusetts
Steward Health Care System
Harvard University
Brigham and Women's Hospital
Umass Memorial Health Care
Massachusetts Insititute of Technology
Raytheon Co.
State Street Corp.
Location
# of E mployees
2012
Boston
Quincy
Boston
Boston
Cambridge
Boston
Worcester
Cambridge
Waltham
Boston
23,983
23,000
17,404
17,000
16,798
15,043
14,800
14,127
12,400
12,347
# of
E mployees
Total
23,983
62,000
17,404
17,000
16,944
15,043
14,900
14,127
71,000
29,727
Source: Boston Business Journal April 2012 issue
UNEMPLOYMENT
The Massachusetts unemployment rate was 5.2% as of November 2014, while Wenham experienced
a 5.6% unemployment rate, and Essex County experienced an 5.5% unemployment rate. The
unemployment rate had decreased significantly throughout the region, the Town of Wenham, Essex
County and the state year over year.
CONCLUSION
Massachusetts has remained below the national unemployment rate and has seen several months of
positive job creation. Though much of this growth is due to temporary census workers, nongovernment employment also increased. The New England Economic Partnership (NEEP) projects that
this trend will continue with 218,500 additional jobs created in the state over the next five years. The
addition of workers reentering the improving labor market will bolster unemployment rates over the
next year, but job growth will continue. NEEP further noted that the state outperformed the nation as
a whole during the recession, losing just 5% of jobs compared to 6% nationally, giving Massachusetts
a superior position from which to rebound. The lower losses and high expected growth rate in the job
market will drive demand in the commercial real estate market over the next few years. Wenham is
also expected to benefit with an unemployment rate below Essex County as a whole.
11
54 GRAPEVINE ROAD AND 31 ESSEX STREET | N EIGHBORHOOD A NALYSIS
NEIGHBORHOOD ANALYSIS
LOCATION
The subject property is in the Town of Wenham which is considered an upper end location within
Essex County, Massachusetts. Wenham offers an exceptional location within easy traveling distance
to the Boston area. The town's quality of life offers an excellent home location. Wenham is a
bedroom community with little commercial property. Grapevine Road and Essex Street are in the
eastern section of Wenham.
BOUNDARIES
The neighborhood boundaries are detailed as follows:
North:
South:
East:
West:
Town of Hamilton
Town of Beverly and Beverly Municipal Airport
Lake Wenham
Town of Topsfield
13
LAND USE
Land uses along Grapevine Road and Essex Street consist of residential property. The immediate area
surrounding the subject is a mixed area of development, consisting primarily of residential with estates
from the 1920s to more recent houses.
ACCESS
Primary access to the subject neighborhood is provided by Route 97, Route 1A and Route 128.
DEMOGRAPHICS
Selected neighborhood demographics in 1-, 3-, and 5-mile radii from the subject are shown in the
following table:
14
CONCLUSION
The subjects neighborhood is positively influenced by its close proximity to Route 128 and the City of
Boston. The neighborhood has a very high average household income, indicative of the strength of
location.
15
54 GRAPEVINE ROAD AND 31 ESSEX STREET | M ARKET A NALYSIS
MARKET ANALYSIS
The market analysis forms a basis for assessing market area boundaries, supply and demand factors,
and indications of financial feasibility. Data sources utilized for this analysis includes Claritas and
CBRE Fast Report.
The subject properties represent single-family residential homes.
DEMOGRAPHIC ANALYSIS
Demand for additional residential property is a direct function of population change. residential
communities are products of a clearly definable demand relating directly to population shifts.
Housing, Population and Household Formation
The following table illustrates the population and household changes for the subject neighborhood
with primary focus on the five-mile radius.
As shown, the subjects neighborhood is experiencing relative stability in both population and
households.
16
Income Distributions
Household income available for expenditure on housing and other consumer items is a primary factor
in determining the price/rent level of housing demand in a market area. In the case of this study,
projections of household income, particularly for renters, identifies in gross terms the market from
which the subject submarket draws. The following table illustrates estimated household income
distribution for the subject neighborhood.
The following table illustrates the median and average household income levels for the subject
neighborhood.
An analysis of the income data indicates that the submarket is generally comprised of high income
economic cohort groups.
Employment
An employment breakdown typically indicates the working class characteristics for a given market
area. The specific employment population within the indicated radii of the subject is as follows:
17
The previous table illustrates the employment character of the submarket, indicating a predominantly
middle-income employment profile, with the majority of the population holding Health Care/Social
Services, Retail Trade, Manufacturing, Professional and Finance related jobs.
Outlook
Based on the location of the property; its positioning within the town of Wenham and the basic
infrastructure of the town, on an unimpaired basis, the property fits a unique market niche. It is the
impairment as shown within the valuation section of this report that changes the balance of the
immediate area where the property is located.
18
54 GRAPEVINE ROAD AND 31 ESSEX STREET | I MPROVEMENT A NALYSIS
PLAT MAP
54 GRAPEVINE ROAD, 36 ESSEX STREET IS LOT 3
19
Subject Property
31 ESSEX STREET, 36 ESSEX STREET IS LOT 3
20
SITE ANALYSIS
The following chart summarizes the salient characteristics of the subject site.
CONCLUSION
As if unimpaired, the sites are excellent single family residential lots.
As impaired, the sites abut or are across from a use inconsistent with typical improvements found in
this section of Wenham.
21
IMPROVEMENTS
The following chart shows a summary of the improvements.
Access is from Grapevine Road across an 1,800 driveway. The site is steep. The driveway is
sculpted into the land. The house is on a rise near the southern end of the property and Penguin Hall.
22
54 GRAPEVINE ROAD, WENHAM, MA
CONCLUSION
The improvements are considered to be in excellent overall condition and are considered to be typical
for the age and location in regard to improvement design and layout, as well as interior and exterior
amenities. Overall, there is only one factor that could be considered to adversely impact the
marketability of the improvements, the abutting use.
By definition, an across the street property is an abutting property. 31 Essex Street is across from
Penguin Hall.
31 Essex Street, Wenham, MA
The following chart shows a summary of the improvements.
23
CONCLUSION
The improvements are considered to be in excellent overall condition and are considered to be typical
for the age and location in regard to improvement design and layout, as well as interior and exterior
amenities. Prior to the 36 Essex Street announcement, there were no known factors that could be
considered to adversely impact the marketability of houses within this quadrant of Wenham.
24
54 GRAPEVINE ROAD AND 31 ESSEX STREET | H IGHEST AND B EST U SE
HIGHEST AND BEST USE

In appraisal practice, the concept of highest and best use represents the premise upon which value is
based. The four criteria the highest and best use must meet are:
legal permissibility;
physical possibility;
financial feasibility; and
maximum profitability.
The highest and best use analysis of the subject is discussed on the following pages. This analysis
incorporates the information presented in the letter of transmittal, as well as any unique characteristics
of the subject described previously.
AS VACANT
Legal Permissibility
The legally permissible uses were discussed in the Site Analysis and Zoning Sections.
Physical Permissibility
The subject houses are adequately served by utilities, and have an adequate shape and size, sufficient
access, etc., to be separately developable parcels. There are no known physical reasons why the
subject sites would not support any legally probably development allowed.
Financial Permissibility
The determination of financial feasibility is dependent primarily on the relationship of supply and
demand for the legally probably land uses versus the cost to create the uses. In this case, the land
under study has been zoned residential since zoning was created within Wenham.
As vacant with the abutting use in place, single family development would be at issue if the land were
unimpaired.
The prospective use when read in context with the zoning by-law can not pass the test of highest and
best use.
Maximum Profitability
The final test of highest and best use of the site as if vacant is that the use be maximally productive
since financial feasibility, in accordance with the zoning by-law, has not been met. Maximum
profitability is an issue.
25
54 GRAPEVINE ROAD AND 31 ESSEX STREET | H IGHEST AND B EST U SE
CONCLUSION: HIGHEST AND BEST USE AS VACANT

Based on this information presented above and upon information contained in the market and
neighborhood analysis, we conclude that the highest and best use of the subject houses, if, for
example, destroyed by fire, would be a major issue.
New development under zoning would be questionable if a conflicting use were in place. There are
many alternative sites that would attract typical residential uses before the land under analysis would
be an attractive option.
26
54 GRAPEVINE ROAD AND 31 ESSEX STREET | A PPRAISAL M ETHODOLOGY
APPRAISAL METHODOLOGY
In appraisal practice, an approach to value is included or omitted based on its applicability to the
property type being valued and the quality and quantity of information available.
COST APPROACH
The cost approach is based on the proposition that the informed purchaser would pay no more for the
subject than the cost to produce a substitute property with equivalent utility. This approach is
particularly applicable when the property being appraised involves relatively new improvements that
represent the highest and best use of the land, or when it is improved with relatively unique or
specialized improvements for which there exist few sales or leases of comparable properties.
SALES COMPARISON APPROACH
The sales comparison approach utilizes sales of comparable properties, adjusted for differences, to
indicate a value for the subject. Valuation is typically accomplished using physical units of comparison
such as price per square foot, price per unit, price per floor, etc., or economic units of comparison
such as gross rent multiplier. Adjustments are applied to the physical units of comparison derived
from the comparable sale. The unit of comparison chosen for the subject is then used to yield a total
value. Economic units of comparison are not adjusted, but rather analyzed as to relevant differences,
with the final estimate derived based on the general comparisons.
INCOME CAPITALIZATION APPROACH
The income capitalization approach reflects the subjects income-producing capabilities. This
approach is based on the assumption that value is created by the expectation of benefits to be derived
in the future. Specifically estimated is the amount an investor would be willing to pay to receive an
income stream plus reversion value from a property over a period of time. The two common
valuation techniques associated with the income capitalization approach are direct capitalization and
the discounted cash flow (DCF) analysis.
METHODOLOGY APPLICABLE TO THE SUBJECT
In valuing the subject, only a sales comparison approach is applicable. The unit of measure applied is
price per square foot of gross living area. This measure is applied by CBRE in its value of 54
Grapevine Road. The value of 31 Essex Street is based on the reference appraisal included in
Addendum B.
27
54 GRAPEVINE ROAD AND 31 ESSEX STREET | S ALES C OMPARISON A PPROACH
VALUE UNIMPAIRED
For 54 Grapevine Road, the following map and table summarize the comparable data used in the
valuation of the property.
28
The location of 54 Grapevine Road is in an area of Bostons North Shore known as HamiltonWenham. Hamilton and Wenham flow together on the eastern side of both towns. They border
Essex. They carry name recognition as a prestige location. Sales #1 to #4 are in this location.
The property under analysis contains 34.3 acres of land. The referenced comparables contain 1.24 to
2.61 acres. 54 Grapevine Road carries a land premium due to lot size and setting. On May 15,
2014, Harvard University purchased a horse arm of 10.33 acres improved with barn and 9
paddocks. After analysis of this transaction, CBRE has added a site premium for the surplus land.
DISCUSSION/ANALYSIS
Sale One
This property is located at 3 Gussett Road in Wenham, Massachusetts. The property is located less
than mile east of 54 Grapevine Road. This is an excellent comparable and directly in the market.
On October 10, 2014 Frederick and Margery Blume sold the property to Greg and Leslie Potter for
$1,700,000. The house was built in 1993 and contains 6,084 square feet. The sale price was
$279.42 per square foot. The property contains 2.61 acres of land. The site is improved with a
colonial designed home with three car garage.
In terms of adjustments, the comparable is 10% superior to subject property.
Sale Two
This is 426 Bridge Street in Hamilton, Massachusetts. Grapevine Road in Wenham is Route 22. Route
22 extends north into Wenham and becomes Woodbridge Street. Woodbridge Street connects to
Bridge Street approximately 1 miles north of Wenham.
On February 21, 2015, Lisa Robinson sold this property to Steven and Ellen Nelson for $1,095,000.
The house was built in 1994 and contains 4,152 square feet. The sale price equates to $263.73 per
square foot. The property contains 2.50 acres of land. The site is improved with colonial home with
two car garage.
In terms of adjustments, the property efficiency is less than subject. Offsetting this difference is age. A
blended adjustment of 5% has been applied.
Sale Three
This is 9 Farrington Lane in Hamilton, Massachusetts. Farrington Street is on the northern border with
the town of Essex. The setting is similar to Grapevine Road with large open areas of land.
29
On June 2, 2014 James Henderson sold the property to Kevin and Amy Marks at a price of
$1,125,000 or $249.67 per square foot. The site contains 1.24 acres of land. The house was built in
1985.
In terms of adjustments, the property is similar in size. The property, however is inferior in setting which
requires a 10% upward adjustment.
Sale Four
This is 638 Bay Road in Hamilton, Massachusetts. Bay Road is Route 1A which extends from South
Hamilton through Essex.
On December 5, 2014 Kimberly Jackson sold this property to Angus McIntyre at a price of
$1,740,000. There are two houses on the property, one built in 1680 and containing 3,552 square
feet and a second built in 1990 and containing 1,221 square feet. The second house is a one
bedroom home with 1 baths. This house contains a two car garage and swimming pool.
In terms of adjustments, the second home on site distorts a gross living area technique for analysis. An
allowance of $285 per square foot for the 1,221 square foot second home suggests an underlying
value of $1,390,000 for subject property. ($1,390,000 plus $350,000 for second home =
$1,740,000).
CONCLUSION
Study of the market indicates an overall price range of $1,095,000 to $1,740,000 for high end
single family housing. When the size of Sale #1 is considered the high end drops to $1,380,000.
When the second home on Sale #4 is considered the high end adjusts to $1,390,000.
After analyzing each sale, and considering GLA pricing, value for 54 Grapevine Road on a 2.3 acre
lot, exclusive of surplus land, would be $1,280,000 or $258.48 per square foot.
The surplus land of 32 acres converts the property from a very nice residence to a spectacular private
estate. The grand, tree lined drive with paved driveway and two stone posts as an entrance are
unique. The challenge is to assign a proper premium for the additional attributes held by the property.
From interview of a party with knowledge of the Harvard University purchase of the 27, 66, and 112
Woodland Mead parcel in Hamilton, it is possible to derive an unimproved land component too be
added to the value of 54 Grapevine Road. Harvard University on May 15, 2014 paid $1,500,000 for
a 10.66 acre equestrian site improved with pole buildings, horse stables, sheds, equipment garage,
and small house. The reported underlying value attributed to the site was $40,000 per acre. Their
proposed polo facility use justified the balance of the price.
30
Overall, CBRE considers $40,000 per acre as a reasonable underlying value for the surplus land on
54 Grapevine Road.
The following chart indicates the value of 54 Grapevine Road and 31 Essex Street to be:
VALUE IMPAIRED
The following map and table summarize the comparable data used in the valuation of the subject.
31
DISCUSSION AND ANALYSIS

The following is a discussion of the abutting properties to the Gosnold-Miller House at 165 Woods
Hole Road, and their comparable paired sales.
Comparable One, Two and Three
The abutting building is a 1907 built guest house containing 14 rooms and 4,706 square feet of GLA
which over time has been converted to part office and miscellaneous uses. Access is through a
common drive over the abutting property. Upon the deaths of Evelyn and Gordon Elliot, the executors
sold the property to the abutees, the Woods Hole Research Center. The executors were obligated to
achieve the maximum price which was $575,000.
The property is 50 from the building at 165 Woods Hole Road. The property faces directly onto the
rear of 165 Woods Hole Road. This sale is in the apex between 165 and 161 Woods Hole Road and
is set back approximately 800. It sits behind two public uses.
As originally residential, the best way to pair this sale is with other residential properties set back
screened from Woods Hole Road.
90 Woods Hole Road is a 4 bedroom two family house containing 3,669 square feet which was built
in 2000. It is of colonial design, with 2 car garage.
32
96 Woods Hole Road abuts 90 Woods Hole Road and is part of a 3 house cluster set back off the
road. The house is also of colonial design, was built in 2000 and contains 4,515 square feet of gross
living area.
The difference in pricing between the abutting sale and sales further distant is:
Comparable Four and Five

Directly across the street from 165 Woods Hole Road is 164 Woods Hole Road. The property is
screened from the road by a sloping driveway and property set down below Woods Hole Road.
This property is a 1920 built 2 bedroom house on a .459 acre parcel. The property contains four
rooms. The sale 1,356 square feet of gross living area.
This property is paired with 31 Katy Hatchs Road in a subdivision .5 miles north. This paired sale is
also small, containing 1.452 square feet. There are three bedrooms. The house was built in 1996
and is in better condition. Adjustments are required. CBRE has applied a $50,000 adjustment for an
extra bedroom and $45,000 (10%) for condition. The difference between abutting sale and a
$275.48 per square foot adjusted price further distant is:
Comparable Five and Six

46 McCallum Drive directly abuts 165 Woods Hole Road to the north and is located in a subdivision.
The complexity of this sale is that it is shielded from 165 Woods Hole Road by a hillside but is clearly
impacted by the Woods Hole Research wind turbine next to their 161 Woods Hole Road facility.
The paired sale is 4 Stonewall Lane, .68 miles north. The dates of sale are similar between the two.
Lot sizes are also similar.
33
46 McCallum Drive is a 5 bedroom house whereas 4 Stonewall Lane is 4 bedrooms. A $50,000

bedroom adjustment equates to a price of $227.99 per square foot. The resultant difference between
sale is:
Comparable Eight and Nine

16 Quissett Circle is a distant abutter. The property is directly within the neighborhood and is clearly
impacted by the presence of the Gosnold Miller house.
This is a recent sale that took place in August 2014. The sale price for this 3 bedroom house equates
to $203.29 per square foot. This sale is paired with a sale within 21 days of the abutter transaction.
The difference between the two suggests a pricing difference of the impaired property of:
CONCLUSION
The pricing difference between impaired property and its unimpaired comparable are as follows:
16 Quissett Circle is the least impacted property. The balance of the sales average -21.96%. CBRE
has concluded to a -22% impact from its analysis of sales which carry an adverse public perception.
34
IMPACT ON VALUE OF 31 ESSEX STREET AND 54 GRAPEVINE ROAD BY CONVERSION

OF 36 ESSEX STREET TO A DRUG AND ALCOHOL TREATMENT CENTER
165 Woods Hole Road is estate property created in the early 1900s. the propertys change of use
occurred in 2007. Gosnold Miller House is a recognized name in the Falmouth community as a drug
and alcohol recovery and treatment center. An adverse public perception regarding the property is
proven by pricing of property directly adjacent thereto.
The abutter sales presented represent properties very close in proximity. When compared to further
distant properties, the pricing change suggests a loss in value of 22%.
In thinking and reflecting on differences, the Miller Gosnold House is 10% of the size of Penguin
Hall.
While common sense suggests the impacts would be far greater than those of the Miller Gosnold
House, there is no data available that would support adjustments higher than the 22% loss in value
suggested by the market comparables that are presented.
Based on the data presented, the impact of the adverse public perception as caused by the drug
and alcohol recovery center on its abutters would be:
35
54 GRAPEVINE ROAD AND 31 ESSEX STREET | R ECONCILIATION OF V ALUE
RECONCILIATION OF VALUE
The issue of reconciliation has flowed throughout this report. In reaching any value conclusions, the
conclusion presented must make sense.
There are multiple types of public perception that impact value. On the positive side property where
there is significance or ownership with name recognition, the price paid will exceed that suggested by
a sale comparison approach involving property within the neighborhood. As an example, on
Poppasquash Neck in Bristol, Rhode Island, Anthony Quinns house sold at a 25% premium.
Where the public perception is adverse, the marketing time and impacts are far longer in nature. In
the case of the Gosnold Miller House, its presence has been in place for 8 years.
It is a well known use within the Falmouth market area; known in particular by year round nonsummer residents. The significance of the data presented herein is that it indicates stigma beyond the
point of damage and even further distant from properties directly abutting. While the Mullen-RCA
differential cannot be precisely quantified, what is clear is that the 22% diminution is significantly more
than what would be caused by an office use.
The letter of transmittal within this report outlines the tests appraisers must apply when reaching a
valuation conclusion. CBRE has followed standard appraisal guidelines in reaching conclusions
presented herein.
Appraisal texts require that unimpaired and impaired consideration be taken into effect. Texts go on to
define impairments as nuisances.
CBRE has concluded that the principle of balance will be knocked out of balance by the proposed
uses:
The principle of balance also applies to the relationship between a property and its
environment. A proper mix of various types and locations of land uses in an area
creates and sustains value. A residence near other residences has much more market
appeal than a residence next to a landfill.12
11
Finally, CBRE has concluded that a realistic loss in value caused by the prospective use would be:
12
The Appraisal of Real Estate, Published by The Appraisal Institute, Chicago IL, 13th Edition, P. 40
36
54 GRAPEVINE ROAD AND 31 ESSEX STREET | R ECONCILIATION OF V ALUE
37
54 GRAPEVINE ROAD AND 31 ESSEX STREET | A SSUMPTIONS AND L IMITING C ONDITIONS
ASSUMPTIONS AND LIMITING CONDITIONS

1. Unless otherwise specifically noted in the body of the report, it is assumed that title to the property or properties
appraised is clear and marketable and that there are no recorded or unrecorded matters or exceptions to title that
would adversely affect marketability or value. CBRE is not aware of any title defects nor has it been advised of any
unless such is specifically noted in the report. CBRE, however, has not examined title and makes no representations
relative to the condition thereof. Documents dealing with liens, encumbrances, easements, deed restrictions, clouds
and other conditions that may affect the quality of title have not been reviewed. Insurance against financial loss
resulting in claims that may arise out of defects in the subjects title should be sought from a qualified title company that
issues or insures title to real property.
2. Unless otherwise specifically noted in the body of this report, it is assumed: that the existing improvements on the
property or properties being appraised are structurally sound, seismically safe and code conforming; that all building
systems (mechanical/electrical, HVAC, elevator, plumbing, etc.) are in good working order with no major deferred
maintenance or repair required; that the roof and exterior are in good condition and free from intrusion by the
elements; that the property or properties have been engineered in such a manner that the improvements, as currently
constituted, conform to all applicable local, state, and federal building codes and ordinances. CBRE professionals are
not engineers and are not competent to judge matters of an engineering nature. CBRE has not retained independent
structural, mechanical, electrical, or civil engineers in connection with this appraisal and, therefore, makes no
representations relative to the condition of improvements. Unless otherwise specifically noted in the body of the report:
no problems were brought to the attention of CBRE by ownership or management; CBRE inspected less than 100% of
the entire interior and exterior portions of the improvements; and CBRE was not furnished any engineering studies by the
owners or by the party requesting this appraisal. If questions in these areas are critical to the decision process of the
reader, the advice of competent engineering consultants should be obtained and relied upon. It is specifically assumed
that any knowledgeable and prudent purchaser would, as a precondition to closing a sale, obtain a satisfactory
engineering report relative to the structural integrity of the property and the integrity of building systems. Structural
problems and/or building system problems may not be visually detectable. If engineering consultants retained should
report negative factors of a material nature, or if such are later discovered, relative to the condition of improvements,
such information could have a substantial negative impact on the conclusions reported in this appraisal. Accordingly, if
negative findings are reported by engineering consultants, CBRE reserves the right to amend the appraisal conclusions
reported herein.
3. Unless otherwise stated in this report, the existence of hazardous material, which may or may not be present on the
property was not observed by the appraisers. CBRE has no knowledge of the existence of such materials on or in the
property. CBRE, however, is not qualified to detect such substances. The presence of substances such as asbestos,
urea formaldehyde foam insulation, contaminated groundwater or other potentially hazardous materials may affect the
value of the property. The value estimate is predicated on the assumption that there is no such material on or in the
property that would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or
engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired.
We have inspected, as thoroughly as possible by observation, the land; however, it was impossible to personally inspect
conditions beneath the soil. Therefore, no representation is made as to these matters unless specifically considered in
the appraisal.
4. All furnishings, equipment and business operations, except as specifically stated and typically considered as part of real
property, have been disregarded with only real property being considered in the report unless otherwise stated. Any
existing or proposed improvements, on or off-site, as well as any alterations or repairs considered, are assumed to be
completed in a workmanlike manner according to standard practices based upon the information submitted to CBRE
This report may be subject to amendment upon re-inspection of the subject subsequent to repairs, modifications,
alterations and completed new construction. Any estimate of Market Value is as of the date indicated; based upon the
information, conditions and projected levels of operation.
5. It is assumed that all factual data furnished by the client, property owner, owners representative, or persons designated
by the client or owner to supply said data are accurate and correct unless otherwise specifically noted in the appraisal
report. Unless otherwise specifically noted in the appraisal report, CBRE has no reason to believe that any of the data
furnished contain any material error. Information and data referred to in this paragraph include, without being limited
to, numerical street addresses, lot and block numbers, Assessors Parcel Numbers, land dimensions, square footage
area of the land, dimensions of the improvements, gross building areas, net rentable areas, usable areas, unit count,
room count, rent schedules, income data, historical operating expenses, budgets, and related data. Any material error
in any of the above data could have a substantial impact on the conclusions reported. Thus, CBRE reserves the right to
amend conclusions reported if made aware of any such error. Accordingly, the client-addressee should carefully review
all assumptions, data, relevant calculations, and conclusions within 30 days after the date of delivery of this report and
should immediately notify CBRE of any questions or errors.
38

6. The date of value to which any of the conclusions and opinions expressed in this report apply, is set forth in the Letter of
Transmittal. Further, that the dollar amount of any value opinion herein rendered is based upon the purchasing power
of the American Dollar on that date. This appraisal is based on market conditions existing as of the date of this
appraisal. Under the terms of the engagement, we will have no obligation to revise this report to reflect events or
conditions which occur subsequent to the date of the appraisal. However, CBRE will be available to discuss the
necessity for revision resulting from changes in economic or market factors affecting the subject.
7. CBRE assumes no private deed restrictions, limiting the use of the subject in any way.
8. Unless otherwise noted in the body of the report, it is assumed that there are no mineral deposit or subsurface rights of
value involved in this appraisal, whether they be gas, liquid, or solid. Nor are the rights associated with extraction or
exploration of such elements considered unless otherwise stated in this appraisal report. Unless otherwise stated it is
also assumed that there are no air or development rights of value that may be transferred.
9. CBRE is not aware of any contemplated public initiatives, governmental development controls, or rent controls that
would significantly affect the value of the subject.
10. The estimate of Market Value, which may be defined within the body of this report, is subject to change with market
fluctuations over time. Market value is highly related to exposure, time promotion effort, terms, motivation, and
conclusions surrounding the offering. The value estimate(s) consider the productivity and relative attractiveness of the
property, both physically and economically, on the open market.
11. Any cash flows included in the analysis are forecasts of estimated future operating characteristics are predicated on the
information and assumptions contained within the report. Any projections of income, expenses and economic
conditions utilized in this report are not predictions of the future. Rather, they are estimates of current market
expectations of future income and expenses. The achievement of the financial projections will be affected by fluctuating
economic conditions and is dependent upon other future occurrences that cannot be assured. Actual results may vary
from the projections considered herein. CBRE does not warrant these forecasts will occur. Projections may be affected
by circumstances beyond the current realm of knowledge or control of CBRE
12. Unless specifically set forth in the body of the report, nothing contained herein shall be construed to represent any direct
or indirect recommendation of CBRE to buy, sell, or hold the properties at the value stated. Such decisions involve
substantial investment strategy questions and must be specifically addressed in consultation form.
13. Also, unless otherwise noted in the body of this report, it is assumed that no changes in the present zoning ordinances or
regulations governing use, density, or shape are being considered. The property is appraised assuming that all required
licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, nor
national government or private entity or organization have been or can be obtained or renewed for any use on which
the value estimates contained in this report is based, unless otherwise stated.
14. This study may not be duplicated in whole or in part without the specific written consent of CBRE nor may this report or
copies hereof be transmitted to third parties without said consent, which consent CBRE reserves the right to deny.
Exempt from this restriction is duplication for the internal use of the client-addressee and/or transmission to attorneys,
accountants, or advisors of the client-addressee. Also exempt from this restriction is transmission of the report to any
court, governmental authority, or regulatory agency having jurisdiction over the party/parties for whom this appraisal
was prepared, provided that this report and/or its contents shall not be published, in whole or in part, in any public
document without the express written consent of CBRE which consent CBRE reserves the right to deny. Finally, this
report shall not be advertised to the public or otherwise used to induce a third party to purchase the property or to make
a sale or offer for sale of any security, as such terms are defined and used in the Securities Act of 1933, as
amended. Any third party, not covered by the exemptions herein, who may possess this report, is advised that they
should rely on their own independently secured advice for any decision in connection with this property. CBRE shall
have no accountability or responsibility to any such third party.
15. Any value estimate provided in the report applies to the entire property, and any pro ration or division of the title into
fractional interests will invalidate the value estimate, unless such pro ration or division of interests has been set forth in
the report.
16. The distribution of the total valuation in this report between land and improvements applies only under the existing
program of utilization. Component values for land and/or buildings are not intended to be used in conjunction with
any other property or appraisal and are invalid if so used.
17. The maps, plats, sketches, graphs, photographs and exhibits included in this report are for illustration purposes only and
are to be utilized only to assist in visualizing matters discussed within this report. Except as specifically stated, data
relative to size or area of the subject and comparable properties has been obtained from sources deemed accurate and
reliable. None of the exhibits are to be removed, reproduced, or used apart from this report.
18. No opinion is intended to be expressed on matters which may require legal expertise or specialized investigation or
knowledge beyond that customarily employed by real estate appraisers. Values and opinions expressed presume that
39

environmental and other governmental restrictions/conditions by applicable agencies have been met, including but not
limited to seismic hazards, flight patterns, decibel levels/noise envelopes, fire hazards, hillside ordinances, density,
allowable uses, building codes, permits, licenses, etc. No survey, engineering study or architectural analysis has been
made known to CBRE unless otherwise stated within the body of this report. If the Consultant has not been supplied
with a termite inspection, survey or occupancy permit, no responsibility or representation is assumed or made for any
costs associated with obtaining same or for any deficiencies discovered before or after they are obtained. No
representation or warranty is made concerning obtaining these items. CBRE assumes no responsibility for any costs or
consequences arising due to the need, or the lack of need, for flood hazard insurance. An agent for the Federal Flood
Insurance Program should be contacted to determine the actual need for Flood Hazard Insurance.
19. Acceptance and/or use of this report constitutes full acceptance of the Contingent and Limiting Conditions and special
assumptions set forth in this report. It is the responsibility of the Client, or clients designees, to read in full, comprehend
and thus become aware of the aforementioned contingencies and limiting conditions. Neither the Appraiser nor CBRE
assumes responsibility for any situation arising out of the Clients failure to become familiar with and understand the
same. The Client is advised to retain experts in areas that fall outside the scope of the real estate appraisal/consulting
profession if so desired.
20. CBRE assumes that the subject analyzed herein will be under prudent and competent management and ownership;
neither inefficient or super-efficient.
21. It is assumed that there is full compliance with all applicable federal, state, and local environmental regulations and
laws unless noncompliance is stated, defined and considered in the appraisal report.
22. No survey of the boundaries of the property was undertaken. All areas and dimensions furnished are presumed to be
correct. It is further assumed that no encroachments to the realty exist.
23. The Americans with Disabilities Act (ADA) became effective January 26, 1992. Notwithstanding any discussion of
possible readily achievable barrier removal construction items in this report, CBRE has not made a specific compliance
survey and analysis of this property to determine whether it is in conformance with the various detailed requirements of
the ADA. It is possible that a compliance survey of the property together with a detailed analysis of the requirements of
the ADA could reveal that the property is not in compliance with one or more of the requirements of the ADA. If so, this
fact could have a negative effect on the value estimated herein. Since CBRE has no specific information relating to this
issue, nor is CBRE qualified to make such an assessment, the effect of any possible non-compliance with the
requirements of the ADA was not considered in estimating the value of the subject.
24. Client shall not indemnify Appraiser or hold Appraiser harmless unless and only to the extent that the Client
misrepresents, distorts, or provides incomplete or inaccurate appraisal results to others, which acts of the Client
approximately result in damage to Appraiser. Notwithstanding the foregoing, Appraiser shall have no obligation under
this Section with respect to any loss that is caused solely by the active negligence or willful misconduct of a Client and is
not contributed to by any act or omission (including any failure to perform any duty imposed by law) by Appraiser.
Client shall indemnify and hold Appraiser harmless from any claims, expenses, judgments or other items or costs arising
as a result of the Client's failure or the failure of any of the Client's agents to provide a complete copy of the appraisal
report to any third party. In the event of any litigation between the parties, the prevailing party to such litigation shall be
entitled to recover, from the other, reasonable attorney fees and costs.
25. The report is for the sole use of the client; however, client may provide only complete, final copies of the appraisal
report in its entirety (but not component parts) to third parties who shall review such reports in connection with loan
underwriting or securitization efforts. Appraiser is not required to explain or testify as to appraisal results other than to
respond to the client for routine and customary questions. Please note that our consent to allow an appraisal report
prepared by CBRE or portions of such report, to become part of or be referenced in any public offering, the granting of
such consent will be at our sole discretion and, if given, will be on condition that we will be provided with an
Indemnification Agreement and/or Non-Reliance letter, in a form and content satisfactory to us, by a party satisfactory to
us. We do consent to your submission of the reports to rating agencies, loan participants or your auditors in its entirety
(but not component parts) without the need to provide us with an Indemnification Agreement and/or Non-Reliance
letter.
26. As part of the clients requested scope of work, an estimate of insurable value is provided herein. CBRE has followed
traditional appraisal standards to develop a reasonable calculation based upon industry practices and industry accepted
publications such as the Marshal Valuation Service handbook. The methodology employed is a derivation of the cost
approach which is primarily used as an academic exercise to help support the market value estimate and therefore is
not reliable for Insurable Value estimates. Actual construction costs and related estimates can vary greatly from this
estimate.
This analysis should not be relied upon to determine proper insurance coverage which can only be properly estimated
by consultants considered experts in cost estimation and insurance underwriting. It is provided to aid the
client/reader/user as part of their overall decision making process and no representations or warranties are made by
40

CBRE regarding the accuracy of this estimate and it is strongly recommend that other sources be utilized to develop any
estimate of insurable value.
41
54 GRAPEVINE ROAD AND 31 ESSEX STREET | A DDENDA
ADDENDA
ADDENDUM A
ASSESSOR CARDS
ADDENDUM B
31 ESSEX STREET
JANUARY 13, 2015 APPRAISAL
ADDENDUM C
QUALIFICATIONS
VALUATION & ADVISORY SERVICES

CB Richard Ellis, Inc.
33 Arch Street, 28th Floor
Boston, MA 02110
TEAM COLLINS
Harris E. Collins, MAI, CRE, FRICS
James T. Moore
John P. Davis
Mathew J. Santos
Matthew Wood
Alex Farmer
Rachel L. Goldberg
Kimberly M. Katz
WEBSTER A. COLLINS
Webster A. Collins, Executive Vice President and Partner, P.C. of CB Richard Ellis/New England Partners
is a real estate appraiser, real estate counselor, and specialist in the sale of investment property. His
experience extends over a period of more than forty years and includes analysis of over $32.0 billion
dollars in property. For New England based capital, he has completed assignments in most major
cities throughout the Unites States. Through use of CBREs worldwide reach, assignments are
completed throughout the world wherever the clients world may be.
Appraisal
When completing an appraisal, each assignment will counsel the client on issues of value, market
forces, and alternatives or unique aspects that may impact a property. Specific appraisal assignments
completed include:
John Hancock Tower Complex -
$910,000,000 transaction involving the John Hancock

Tower Complex and for Manulife the Berkeley Building
and Brown Buildings.
Major Shopping Centers -
Burlington Mall, North Shore Mall, Mall at Chestnut

Hill, Pheasant Lane Mall, Hanover Mall.
Downtown Boston High-Rise Towers -
53 State Street, One Financial Center, 225 Franklin

Street, 101 Federal Street, 265 Franklin Street, One
Boston Place, One Federal Street, 125 High Street.
The Palisades Center

West Nyack, NY -
Northeast Savings / Rhode Island

Depositors and Economic
Protection Corporation -
A 2,217,322 square foot super regional mall with

traditional and box anchors. Three year real estate
tax dispute at issue totaling $980 million in value.
Completion of what is believed to be the largest single

commercial appraisal assignment in New England
involving 873 Rhode Island properties.
His client base is broad and includes numerous New England entities including John Hancock, MIT,
and Brown University.
Although his experience is primarily in New England, he has completed assignments throughout the
United States. He is an Emeritus Member of Valuation Network, Inc. (now Integra), a nationwide
consortium of over 40 appraisal and consulting firms. He is a past National President.
Webster A. Collins Page Two

He has developed specific estate and resort property expertise and has valued property on Marthas
Vineyard, Nantucket Island, and Block Island. On Nantucket, he has appraised over 70% of all
commercial/hotel space.
He is a member of The Appraisal Institute (MAI) and is a Past President of the New England Chapter.
He has appraised over 80 million square feet of office space, over 40 million square feet of industrial
space, over 25 million square feet of retail, over 25,000 apartment units, and over 10,000 hotel
rooms. He is a licensed and certified real estate appraiser in: Massachusetts, Maine, New Hampshire,
Rhode Island, New York, and on a temporary basis in other locations where clients own property.
Real Estate Counseling
Real estate counseling is a separate discipline which offers advisory services on a wide range of real
estate issues. Examples of services provided by Mr. Collins include:
-
Market studies including supply and demand analysis - He called the 1979, 1987 and
1994, 2001 and 2004 Boston office market turns.
Feasibility studies - He completed the feasibility studies for the IBM Building in
Waltham and the re-use alternatives of Fenway Park for the Boston Red Sox.
Development Planning He has subdivided land and through the approval process,
he has obtained permits. He has prepared development impact reports.
Air rights leases and ground leases - Copley Place is built on air rights where Mr.
Collins served as advisor to the ownership.
Asset Management and leasing team support - He has advised on over five million
square feet of lease negotiations.
Real estate tax abatements - Involvement includes testimony on downtown high-rise

and suburban office buildings, shopping centers, hotels, and apartments.
Rehabilitation studies and development consulting - He advised and implemented the

Paine Office Building and 711 Atlantic Avenue rehabilitations.
Service as an investment fiduciary responsible for individual properties held in trust.
Eminent domain He has provided litigation support on hundreds of properties and

provided expert witness testimony on the largest taking in the history of Massachusetts 150 Causeway Street. His testimony has been upheld by the Supreme Court of Rhode
Island.
Any counseling services are undertaken based on a pre-agreed upon fee for services. Mr. Collins is a
member of the American Society of Real Estate Counselors (CRE) and has served on their Board of
Governors. He has served as Editor of The Counselor, published by The Society; is the author of a
monograph: Office Rehabilitation: Key Ingredients for Successful Projects; and has published over 80
articles in such publications as The Appraisal Journal, Real Estate Issues, and New England Real
Estate Journal. Mr. Collins is a fellow in the Royal Institute of Chartered Surveyors (FRICS).
Webster A. Collins Page Three

He has qualified and testified as an expert witness on real estate matters on over two hundred
occasions before tribunals arbitrating disputes, courts, and federal jurisdictions. He has testified in all
New England states as well as in seven other states, and at the Supreme Court of the State of New
York. He is an expert on estate and gift tax matters involving Internal Revenue Service and state
taxation authorities including determination of discounts for partial interests. He is an expert in
eminent domain. He is a co-manager within CBREs Litigation Support Group and Advisory Service
Group for the United States.
Investment Sales
The selling of investment property is a specialty unto itself that utilizes all aspects of a counselor's skill in
analysis and negotiation. Investment sales involves the proper buyer-seller matching that comes about
only when a counselor is able to apply the sum total of his or her years of experience.
Under a team approach, Mr. Collins, in recent years, has participated in over $750,000,000 in
transactions which among others include:
Harbor South -
A 203,000 square foot office building.
Woburn Industrial Center -
A 506,000 square foot, 6-building industrial park.
250 Boylston Street -
A landmark office building across from the Boston

Public Garden for conversion to condominiums.
One Marlboro Place -
A 160,000 square foot research and development

building.
Canton Commerce Center -
A 360-acre office, research and development park.
Chemfab Home Office -
A 164,000 square foot sale/leaseback with sale of 155

acres of excess land.
Lewiston Mall -
A 266,441 square foot regional shopping mall (but not

including the TJX store).
Community Involvement
Mr. Collins is involved with various community activities. A summary of his involvement includes:
Director for twenty-two years of the Boston Five Cents Savings Bank, now part of
Citizens Financial
Beth Israel Deaconess Medical Center - Overseer and Member of Building and
Ground Committee
Lehigh University Collins-Goodman Endowed Chair in Real Estate Studies
Editorial Board - Real Estate Issues
Appraisal Foundation - Firm representative on Industry Advisory Council
Director of Joseph Farber & Co., Inc., Denver's largest appraisal and consulting
firm and part of director team which sold the company to employees.
Trustee - Greater Boston Real Estate Board Pension Fund
Advisor - William S. Ballard Scholarship Fund
Webster A. Collins Page Four
Director Milton Fuller Housing Corporation
Member - Lambda Alpha - Honorary Land Society
Summary
In summary, the cumulative total of Mr. Collins experience has resulted in his completing over 5,500
reports involving over 180 million square feet of property and since his joining his firm as a partner in
1983 becoming one of the top producers in the history of the firm. Since 1989, the firm has
presented awards for achievement. For seven consecutive years, Mr. Collins was awarded the
Partners Cup for top production.
Mr. Collins is committed to the mission of his firm and creates teams for most assignments in order to
provide clients with the best possible service. In 2003, the Partners Cup, which he continues to hold,
was retired and presented to Mr. Collins by his peers.

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APPRAISAL REPORT

Valuation Impacts of Conversion of Penguin Hall

VALUATION & ADVISORY SERVICES

March 10, 2015

Valuation Impacts of Conversion of 36 Essex Street to

Dear Mr. Moroney:

THE VALUATION PROCESS

Identify the Intended

Identify the Purpose

Identity of the Client:

Mrs. Joan Lovejoy

Mr. Jere Moroney

All parties involved with the private pay substance

Effective Date of the Opinion:

March 8, 2015 the date of property inspection.

RELEVANT CHARACTERISTICS OF THE PROPERTY

Mr. Jere Moroney

Activities that produce noxious fumes or air pollution in residential areas

Commercial uses that generate large volumes of automobile traffic in residential

Junkyards in highly visible areas

Activities considered socially offensive, such as sale of pornographic materials, in

Dictionary of Real Estate Terms, Published by Barrons, 7th Edition, P.335-336

Mr. Jere Moroney

A location in a prestigious setting

Uniform Standards of Professional Appraisal Practice

Mr. Jere Moroney

Length of operation since 2007 provides a basis for analysis.

Availability of unimpaired and impaired sales data

Mr. Jere Moroney

54 GRAPEVINE ROAD AND 31 ESSEX STREET | C ERTIFICATION OF THE A PPRAISAL

CERTIFICATION OF THE APPRAISAL

54 GRAPEVINE ROAD AND 31 ESSEX STREET | C ERTIFICATION OF THE A PPRAISAL

54 GRAPEVINE ROAD AND 31 ESSEX STREET | S UBJECT P HOTOGRAPHS

54 GRAPEVINE ROAD AND 31 ESSEX STREET | S UBJECT P HOTOGRAPHS

31 ESSEX STREET STAIRCASE

31 ESSEX LIVING ROOM

SECOND FLOOR HALL

54 GRAPEVINE ROAD AND 31 ESSEX STREET | S UBJECT P HOTOGRAPHS

31 ESSEX FAMILY ROOM

31 ESSEX 3 CAR GARAGE

31 ESSEX FRONT ENTRANCE

54 GRAPEVINE FRONT ENTRANCE

54 GRAPEVINE 3 CAR GARAGE

54 GRAPEVINE ROAD AND 31 ESSEX STREET | S UBJECT P HOTOGRAPHS

54 GRAPEVINE ROAD AND 31 ESSEX STREET | S UMMARY OF S ALIENT F ACTS

SUMMARY OF SALIENT FACTS

EXTRAORDINARY ASSUMPTIONS AND HYPOTHETICAL CONDITIONS

54 GRAPEVINE ROAD AND 31 ESSEX STREET | T ABLE OF C ONTENTS

54 GRAPEVINE ROAD AND 31 ESSEX STREET | I NTRODUCTION

PURPOSE OF THE APPRAISAL

54 GRAPEVINE ROAD AND 31 ESSEX STREET | I NTRODUCTION

54 GRAPEVINE ROAD AND 31 ESSEX STREET | I NTRODUCTION

Extent to Which the Property is Inspected

54 GRAPEVINE ROAD AND 31 ESSEX STREET | A REA A NALYSIS

54 GRAPEVINE ROAD AND 31 ESSEX STREET | A REA A NALYSIS

54 GRAPEVINE ROAD AND 31 ESSEX STREET | A REA A NALYSIS

According to estimates from MassBenchmarks, Massachusetts real gross domestic product

54 GRAPEVINE ROAD AND 31 ESSEX STREET | A REA A NALYSIS

54 GRAPEVINE ROAD AND 31 ESSEX STREET | A REA A NALYSIS

54 GRAPEVINE ROAD AND 31 ESSEX STREET | A REA A NALYSIS