From: Richard Kahn

From: Richard Kahn To: "jeffrey E." <[email protected]> Subject: Fwd: Q2 2017 Reporting - American Yacht Harbor" Date: Tue, 01 Aug 2017 15:00:34 +0000 Attachments: AYH_Q2_2017_Lender_Report.pdf numbers look great - a few highlights as of june 30 2017 cash in bank 3,739,189 net cash flow for 6 months 573,796 capital improvements for 6 months 200,074 Net operating income for 6 months 1,459,030 RK estimate of valuation: annualize NOI 1,459,030 x 2 = 2,918,060 assume buyer wants 10-11% cap rate (due to deferred maintenance) then value of property is somewhere between 26,527,818 to 29,180,060 assume 27,000,000 sales price less bank debt 12,033,435 net value approx before balance sheet cleanup 14,966,565 cash / prepaids less liabilities is approx another 3,035,000 of value total value per RK 18,000,000 jee share 9,000,000 jee basis in investment (see below) 4 675 354 net profit on investment 4,324,646 jee basis summary 5/29/2007 investment 12,976,978 8/29/2007 bank refinancing distribution (7,508,969) 11/09/2011 distribution (250,000) 5/16/2014 distribution (292,655) 4/8/2016 distribution (50,000) 5/3/2016 distribution (200,000) jee basis ** 4,675,354 ** note this number does not take into consideration tax implications of k-1 passthroughs (which in your case has been suspended passive losses) not sure about your thoughts on long term holding other than benefits we receive from slips, parking, etc but valuation in my opinion is finally higher than acquisition (10 years ago) and EFTA01039328 now my be a good time to consider liquidating to Farkas or another buyer as my quick calculation would yield you approximately 9,000,000 in cash proceeds.... as long as your benefits are kept in tact.. Richard Kahn HBRK Associates Inc. 575 Lexington Avenue 4th Floor New York, NY 10022 Begin forwarded message: From: "Lande, Mark" < Subject: Q2 2017 Reporting - American Yacht Harbor"" Date: August 1, 2017 at 10:08:44 AM EDT To: "Lande, Mark" >, 'Richard Kahn' Cc: 'Jeanne Brennan' >, "Greene, Jennifer" "Brown, Luke" < "Darren Ind kern >, "Lande, Mark >, "Conforti, Lorraine" Dear Richard, Please find attached the Q2 f/s for American Yacht Harbor, If you have any questions, please do not hesitate to contact me. Yours, Mark Lande This message, and any attachments hereto, is confidential and intended exclusively for the use of the individual or entity to whom it is addressed. This communication may contain information that is confidential, proprietary, privileged, subject to a confidentiality and/or non-disclosure agreement, or otherwise exempt or protected from disclosure (either by contract or under applicable law). If you are not the intended recipient, you are hereby notified that printing, retaining, reproducing, copying, disclosing, disseminating or using this message or any information EFTA01039329 contained herein (including any reliance thereon) is strictly prohibited. If you have received this message in error, please contact the sender immediately and destroy the message (including any attachments) and any copies in their entirety, whether in electronic or hard copy format. Nothing contained in this e-mail shall be considered a legally binding agreement, amendment or modification of any agreement with Island Capital Group LLC or any of its affiliates, each of which requires a fully executed agreement to be received by Island Capital Group LLC or such affiliate. EFTA01039330