AMERICAN YACHT HARBOR & MARINA

AMERICAN YACHT HARBOR & MARINA INTRODUCTION INTRODUCTION PROPERTY IDENTIFICATION The subject property consists of a fully developed marina currently operating os American Yacht Harbor & Marina, os well os 47,344 square feet of retail and office space situated on the landside portion of the site. The subject's street address is 6100 Red Hook Quarters #2, in St. Thomas, USVI. OWNERSHIP AND PROPERTY HISTORY Title to the upland portion of the property is currently vested in the name of IGY-AYH St. Thomas Holdings, LLC, who acquired title to the property in January 2007, os recorded in the St. Thomas/St. Johns Deed Records. The submerged land is currently under the ownership of the Coastal Zone Management Commission and leased to IGY-AYH St. Thomas Holdings, LLC through September 14, 2010 via on assignment under a Coastal Zone Management Permit (CZM). The current lease began on September, 2000 with a ten year term. Renewal of the CZM permits is not prohibitive and will likely be granted upon expiration of the current permit. The total consideration for the January 2007 transaction was $25,500,000. The subject was port of a larger purchase of four marinas properties in the Caribbean. The seller was Sun Resorts, which owned the subject outright and various interests in the other three marinas. The sale price is slightly higher than our value estimate, which could be the result of allocated costs of the portfolio sale. Other than that noted herein, there hos been no other ownership transfer of the property during the previous three years. As of the dote of volue, the subject is not being marketed for sole. RELEVANT DATES The following table illustrates the various dates associated with the valuation of the subject property: RELEVANT DATES Date of Report: Date of Inspection: Date of Value As Is June 30, 2007 June 19, 2007 June 19, 2007 Compiled by CBRE PURPOSE OF THE APPRAISAL The purpose of this appraisal is to estimate the market value of the leasehold interest in the subject property. The current economic definition agreed upon by agencies that regulate federal financial nstitufions in the U.S. (and used herein) is as follows: 1 O 2007 CB Richard Ellis, Inc. EFTA01119153 AMERICAN YACHT HARBOR & MARINA SUMMARY OF SALIENT FACTS Stabilized Operating Data Tata! Per Slip Total Revenue $6,626,402 550,972 Operating Expenses $4,730,646 $36,390 Expense Ratio 71.39% Net Operating Income $1,895,756 $14,583 VALUATION Sales Comparison Approach $21,200,000 $163,077 Income Capitalization Approach $21,000,000 $161,538 CONCLUDED MARKET VALUE Appraisal ►remise Interest Appraised Date of Value Value As Is Leased Fee/Leasehold Interest June 19, 2007 $21,000,000 Compaed by CORE SPECIAL ASSUMPTIONS The portion of the value attributed to the marina is based on an approved permit from the Coastal Zone Management Commission. Operation of the marina would not be possible if the permit were not in place or available to the marina operator. As such, our value is assumes the permit will continue to be renewed and the existing operations not be interrupted or halted. The subject property is currently granted an exemption from real estate taxes through December 31, 2011. The exemption was granted via the Economic Development Commission in on effort to promote development and/or redevelopment in the Red Hook area. Our value assumes the exemption will be extended after the current exemption expires and that the subject will remain 100% real estate tax free. iv © 2007 C8 Richard Ellis, Inc. EFTA01119154