Program Plan for The Academy Property Exchange NARF & The Academy

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EXECUTIVE SUMMARY

The property herein referred to as the "Academy" is a 3.67-acre site on University Hill, bounded by

Aurora, Lincoln, 10th_{, and Cascade. The Academy is owned by the University of Colorado (the}

"University") but has been leased to the Academy Development Group ("ADG") under a long-term ground lease. Formerly housing University departments, the site was deemed obsolete in the 1980s as academic groups relocated to CU’s main campus. Unable to sell for market value, the University then entered into a ground lease to offset development costs on the main campus.

Due to constraints of the existing ground lease, the geographical location, and the historic landmark designation, the Academy has limited strategic value to the University. In relation to its value, the asset is significantly underperforming financially and is unlikely to provide a viable campus redevelopment option when the ground lease expires in 2082. For these reasons, CU Boulder proposes leveraging the Academy property to acquire multiple properties with approximately equivalent market values and higher campus strategic value, through an exchange transaction. See the attached Exhibit A for an illustration of this transaction.

This is a unique opportunity to acquire strategic real estate using the value of an under-performing asset with zero expenditure of campus cash. There is an opportunity to streamline a complicated deal into one transaction and acquire an assemblage of properties adjacent to campus with high strategic value. The properties that have been identified for acquisition are the properties owned by the Native American Rights Fund (NARF) at 1506 Broadway and 1522 Broadway, and two single-family residences at 2705 Colorado Avenue and 1221 26th _{Street owned by affiliates of ADG. See}

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Purpose

The University examines how the sale of the Academy may be best executed to acquire maximum strategic value properties. There is potential to liquidate a property subject to a long-term ground lease (expires in 2082) with substantially under performing cash flows for the remaining Term to acquire properties of higher strategic value.

Financial Analysis

It is critical to understand the financial implications of the exchange as this is a key driver of the transaction. The Academy has been appraised at $6,200,000. The NARF properties have been valued at $3,850,000, and the combined value of 2705 Colorado Ave and 1221 26th_{Street is}

$1,965,000. The net difference between the Academy and other properties of $385,000 will be received by the University as cash.

Summary of Appraisal Value

Properties Appraised Value CU Property The Academy $ 6,200,000 Exchange Properties NARF (2) $ (3,850,000) Colorado Avenue (2) $ (1,965,000)

Net Difference (Cash paid to CU) = $ 385,000

Considering the estimated future rent revenue generated by the exchange properties, plus future rent escalations, minus estimated operating costs and deferred maintenance, we arrive at the figures below depicting the estimated net operating income (NOI). The estimated five-year NOI for the NARF properties is $538,382 based on the negotiated lease agreement with NARF. The estimated five-year NOI for the Colorado Ave properties is $287,728 based on the current rent revenue.

Under the current land lease with The Academy, the five-year rent revenue (or NOI) is $5,000 ($1,000 annually). Factoring in the $385,000 cash receipt from the exchange, the five-year projected NOI generated by the exchange is $1,206,110.

Five-Year Cash Flow Summary

Cash Receipt from Exchange $ 385,000 $ 538,382 NOI Generated by NARF Properties

NOI Generated by Colorado Ave Properties $ 287,728 Minus NOI from Academy Ground Lease $ (5,000)

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Financial Analysis (continued)

Finally, we can compare the net present value (NPV) of the exchange properties NOI versus the Academy ground lease revenue over the remaining term of the Academy ground lease (61 years). These calculations include property appreciation over the remainder of the ground lease term. As shown in the table below, regardless of the discount rate, the NPV of the income generated by the exchange properties is greater than the income generated by the Academy ground lease.

62-Year Net Present Value Comparison Net Present Value Discount

Rate Academy NPV Properties NPV Exchange Difference Low Discount Rate 4% $ 11,932,461 $ 3,386,676 Mid Discount Rate 6% $ 7,360,555 $ 2,302,665 High Discount Rate 8% $ 5,017,647

$ 15,319,137 $ 9,663,220

$ 6,734,670 $ 1,717,023

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History of The Academy

The Academy property located at 970 Aurora Avenue, formerly the Mount St. Gertrude Academy, is a landmarked building with a rich history, erected in the late 1800s. To quote the National and State Register, "The academy is associated with the early development of education in Colorado and the development of Boulder's University Hill neighborhood."

In 1891, members of the Sisters of Charity of the Blessed Virgin Mary had traveled west from Iowa to Boulder to visit family and heal from tuberculosis in the arid, sunny climate. Sister Mary Theodore O'Connor saw Boulder's opportunity to expand the organization's health and educational mission. That year, they struck a deal with a developer to acquire the site at 10th _{and Aurora.}

In February 1892, construction began on a four-story Richardsonian Romanesque style building, the Mount St. Gertrude Academy, named after Mother Mary Gertrude, president of the Iowa nuns. The original structure was designed by architects Alexander Cazin and Luther Hixon. The Academy began as a coed school but quickly changed to an all-girls school. A portion of the Academy was dedicated as an infirmary to accommodate sisters and students afflicted with tuberculosis. Two wings and a chapel were added in 1921, designed by architect George H. Williamson.

In 1969, the sisters closed the school due to a shortage of personnel and the extensive cost of required capital improvements. The University acquired the land and buildings that same year and the building housed various departments, including Continuing Education, the Bureau of Conference and Real Estate, Dance, and Intensive English.

Mount St. Gertrude Academy, circa 1893

An arson fire in October of 1980 caused extensive damage to the main building and the bell tower. While the chapel remained in use for Dance, the main building was abandoned following the fire. Once an addition for the Dance department was built on CU's main campus, the chapel became vacant.

In 1984, the original building was designated as a city landmark. Around this time, the University attempted to sell the Academy to relieve an internal debt taken against the property to build the Dance addition on the main campus. Unable to sell the property for a fair market value, the University decided to enter into a long-term ground lease to generate cash.

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On November 3, 1994, the building was added to the National Register of Historic Places. The full-service retirement community opened in 1998 with 52 residences.

The ground lease terms included $500,000 upfront cash and subsequent annual payments of $1,000 until 2042. Following the Initial Term, ADG has two separate ten-year renewal options with $900,000 due at each Term, as well as two additional ten-year terms at an appraised fair market value. Upon expiration of the ground lease, both land and improvements would revert to the University, and the landmarked building would be restored to its original state.

The Properties

THE ACADEMY

The 3.67-acre property is in Boulder, Colorado, on University Hill, bounded by Aurora, Lincoln, 10th, _and

Cascade. Boulder County provides an address of 970 Aurora Avenue, Boulder. The property is described as parcel number 146331325001.

Appraised Valuation: $6,200,000, subject to the landlord's reversionary interest at the end of the Term.

• _{There are eleven buildings designated for senior}

housing use.

• Ground Lease commenced on February 5, 1991

• The Initial Term expires April 8, 2042; however, the tenant has four additional ten-year options at its sole discretion for an effective remaining term through 2082.

o The ground lease payments were front-loaded with an initial rental payment of $500,000 with an annual rent of $1,000 until 2042.

3.67-acre property bounded by Aurora, Lincoln, 10th _{& Cascade}

o There are two ten-year options (2042-2062) at $900,000 due at each Term.

o There are two additional ten-year terms (2062-2082) at an appraised fair market value for the land (FMV) x Prime Rate plus 1% at each renewal term.

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NATIVE AMERICAN RIGHTS FUND (NARF) PROPERTIES

The NARF properties consist of two 2-story office buildings on Broadway, just north of University Avenue. The buildings are on approximately 0.47 acres of land.

Valuation: The aggregate appraised value is $3,850,000.00. 1506 Broadway

Two-story office building consisting of approximately 11,620 square feet of area, built in 1928.

Appraised valuation: $2,900,000 1522 Broadway

Two-story office building consisting of approximately 2,113 square feet of area, built in 1923.

Appraised Valuation: $950,000

The University would acquire these properties with the intent to lease the properties back to NARF on a short-term basis at a 4.75% yield rate. The rental income would maintain the properties as well as collect funds to be used towards future redevelopment. With a 4.75% yield rate, the annual rent revenue would be $182,875.00. The University has negotiated with NARF that the first three months of rent will be free, for an effective annual rate of $137,156.25.

1506 Broadway

1522 Broadway

COLORADO AVENUE PROPERTIES

The properties (the "Colorado Ave Properties") west of 28th _{Street and Colorado Avenue are of}

interest to the University. The following properties are owned by individuals or entities affiliated with ADG and are being considered as part of the Academy exchange:

2705 Colorado

Owner: APACA, LLC (whose members are Gary Berg & Joseph Romano)

Tax Assessor’s Total Valuation: $790,000

Appraised Valuation: $915,000

• _{Built in 1960}

• Zoned City of Boulder RL-1

• _{10,163 SF (.23 acres) rectangular parcel}

• 2,000 SF single-family 1-story ranch, 3 bd/

2ba 2705 Colorado Avenue

• _{Current rental income is $4,625 /month (or $55,500 annually, which is +61X the annual cash}

flow from the Academy)

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1221 26th Street

Owner: Gary Berg & Joseph Romano, in their individual capacities

Tax Assessor’s Total Valuation: $725,300

Appraised Valuation: $1,050,000

• _{Built 1957}

• Zoned City of Boulder RL-1

• 9,168 SF (.21 acres) nonconforming

square parcel

• 2,198 SF single-family 1-story ranch, 4

bd/ 2ba 1221 26

th _Street

• Current rental income is $3,500/ month (or $42,000 annually, which is +46X the annual cash

flow from the Academy)

• _{This property is continuous with CU property (2501 Colorado Avenue, Herbst Program for}

Engineering Ethics & Society) and allows for potential future redevelopment

Future Use and Income Potential:

• Acquiring the Colorado Ave Properties would further the Colorado Avenue assemblage by

the University and supplement the subject area as the eastern gateway to the main campus.

• The Colorado Ave Properties are currently used as student rentals. They would continue as

student rentals with continued monthly cash flows until the University is ready to develop the land for academic or research use.

• _{The best future use of the Colorado Ave Properties would be to combine the Colorado Ave}

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The assemblage of University real estate on the Broadway frontage between the City arboretum to the north and Baseline to the south

Strategic Acquisition Guidelines

The acquisition of the NARF and the Colorado Ave Properties furthers several of the University’s high and medium priority strategic goals:

a. High Priority:

• Necessary to secure entryways to campus

• _{Make existing landholdings that are identified} for near-term development (0-4 years) more developable

• Sites having strategic material value adjacent to existing landholdings that are under

imminent risk of being sold to other parties b. Medium Priority:

• _{Properties that the campus should acquire to}

help support long-term strategic land

assemblages and future campus expansions

• Not immediately necessary for the

development

Consistency with Campus Mission

The exchange of the Academy for the NARF properties and the Colorado Ave Properties is supportive of the mission of the CU Boulder campus as established by state statute:

The Boulder Campus of the University of Colorado shall be a comprehensive graduate research university with selective admissions standards. The Boulder Campus of the University of Colorado shall offer a comprehensive array of undergraduate, masters, and doctoral degree programs. Source: CRS 23-20-101(a)

Consistency with Facilities Master Plan

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Zoning

While University-owned land is not subject to local zoning ordinances, when possible, CU Boulder prefers that campus development acknowledge City of Boulder zoning. The Academy property and the Colorado Ave Properties are zoned Residential-

Low 1 (RL-1), which is defined by the Boulder Revised Code, 1981 Section 9-5-2(c)(1)(A) as: "Single-family detached residential dwelling units at low to very low residential densities".

The NARF properties are zoned Business- Transitional 2 (BT-2), which is defined by the Boulder Revised Code, 1981 Section 9-5- 2(c)(2)(E) as: "Transitional business areas which generally buffer a residential area from a major street and are primarily used for commercial and complementary residential uses, including without limitation, temporary lodging and office use”.

Management and Operations Plan

Financing Plan

The proposed exchange of properties is intended to be a no cash expenditure transaction.

Ownership Costs

There are no ownership costs of the Academy as the property is leased through a ground lease in which ADG pays all costs and expenses. Ownership costs of the NARF properties and the Colorado Ave Properties will be their operating expenses, offset by the rental revenue generated.

Terms of Transfer

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Legal Descriptions

The Academy at 970 Aurora Avenue

LOTS 1 - 48 BLK 27 UNIVERSITY PLACE LAND ONLY

1506 Broadway

LOTS 10-11 BLK 1 GRAND VIEW TERRACE LESS PT TO STREET AS PER REC 697597 BCR DPT FILE 07-01-270-(01) TAX EXEMPT EFF 1/1/94

1522 Broadway

LOT 9 BLK 1 GRAND VIEW TERRACE LESS PT TO STREET AS PER REC 697597 BCR DPT FILE 07-01-270-(02) TAX EXEMPT EFF 1/1/94

1221 26th Street

TRACT IN SW 1/4 NW 1/4 32-1N-70 AS DESCRIBED IN REC#2925253 BCR

2705 Colorado Avenue

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Exhibit C-1

Net Operating Income NPV Comparison by Property 2021 - 2082

University Property Low Discount Rate 4% Mid Discount Rate 6% High Discount Rate 8%

The Academy - 970 Aurora Ave $ 1,228,012 $ 639,194 $ 352,980

Acquisition Properties

NARF - 1506 and 1522 Broadway St $ 3,370,575 $ 2,138,301 $ 1,497,090 Gary Berg Property - 2705 Colorado $ 1,161,758 $ 742,208 $ 523,772 Gary Berg Property - 1221 26th Street $ 879,168 $ 561,671 $ 396,368

Acquisitions Property Totals: $ 5,411,501 $ 3,442,181 $ 2,417,230

The Academy vs. NARF Net Operating

Income $ 4,183,489 $ 2,802,987 $ 2,064,250

Notes

- NPV calculation based on remaining Academy ground lease term of 62 Years

- NARF first lease year will credit back three months of rent at an annual rate of $182,875, per negotiated lease terms - All properties assume 2.2% inflation, 3.8% property appreciation for first ten year then 2.5%, 2.2% rent escalation - Discount Rate range based on expected return rates for properties comparable to the Academy.

- Net Operating Income is calculated by comparing the 5 Year average NOI to total annual rent revenue for similar properties that CU owns. NOI to total rent for office properties is 50.38% and 56.48% for student housing properties

Scenario Analysis

Assumptions: Each scenario assumes we swap the academy property and invest the proceeds in properties

aligned with Universities strategic interests in the North West Campus Gateway. The Net Present Values represent the projected future rental revenue cash flows over the same time frame of the Academy's land lease (62 years). The range of discount rates is 4% to 8%.

Swap the Academy for NARF 1506 and 1522 Broadway Properties. Use excess funds from swap to purchase 2705 Colorado and 1221 26th Properties

Estimated net proceeds from swap are $2,350,000. 2705 Colorado and 1221 26th properties estimated acquisition cost is $1,965,000. Initial swap results in net gain of additional $385,000

Estimated annual rent revenue for NARF is $182,875, but with the three months credited will be $137,156, 2705 Colorado is $55,500, and 1221 26th is $42,000. Projected 5 year net operating income is $718,388 and appreciation of $1,216,088. The total 5 Year projected gain of $1,934,476.

Low to High (4% - 8%) Net Present Value range for NARF is $9,930,230 to $4,355,585, 2705 Colorado is $2,720,741 to $1,203,128 and 1221 26th is $2,668,165 to $1,175,957. Total NPV for all Properties is $15,319,137 to $6,734,670 compared to the Academy's range of $11,932,461 to $5,017,647. The NPV difference of $3,386,676 to $1,717,023 in additional

value generated over a 62 year time frame.

Potential Revenue from Academy Ground Lease

Ground Lease (2021-2041) 1,000/year $ 20,000

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Low Discount Rate Mid Discount Rate High Discount Rate

Discount Rate (i) 4% 6% 8%

NPV Appreciation $ 9,907,636 $ 6,221,039 $ 4,317,440 NPV NOI Only $ 5,411,501 $ 3,442,181 $ 2,417,230 NPV Rent Revenue $ 10,347,141 $ 6,595,396 $ 4,642,433 NPV Appreciation and NOI: $ 15,319,137 $ 9,663,220 $ 6,734,670

Calendar Year Period Total Annual Appreciation and Net Income Increase of Property Value Annual Net Operating Income @ 50.38% to 56.48% of Annual Rent Annual Rent Payment Cumulative Land Value Cumulative Net Operating Income Generated Cumulative Value (NOI and Land

Value) 2020 0 $ 5,815,000.00 $ 2021 1 $ 376,787.75 $ 2022 2 $ 388,698.67 $ 2023 3 $ 401,009.24 $ 2024 4 $ 413,733.49 $ 2025 5 $ 426,885.96 $ 2026 6 $ 440,481.69 $ 2027 7 $ 454,536.30 $ 2028 8 $ 469,065.93 $ 2029 9 $ 484,087.35 $ 2030 10 $ 499,617.92 $ 2031 11 $ 511,559.40 $ 2032 12 $ 523,787.35 $ 2033 13 $ 536,308.66 $ 2034 14 $ 549,130.38 $ 2035 15 $ 562,259.76 $ 2036 16 $ 575,704.19 $ 2037 17 $ 589,471.27 $ 2038 18 $ 603,568.77 $ 2039 19 $ 618,004.64 $ 2040 20 $ 632,787.03 $ 2041 21 $ 647,924.29 $ 2042 22 $ 663,424.97 $ 2043 23 $ 679,297.82 $ 2044 24 $ 695,551.81 $ 2045 25 $ 712,196.13 $ 2046 26 $ 729,240.18 $ 2047 27 $ 746,693.59 $ 2048 28 $ 764,566.22 $ 2049 29 $ 782,868.19 $ 2050 30 $ 801,609.84 $ 2051 31 $ 820,801.78 $ 2052 32 $ 840,454.84 $ 2053 33 $ 860,580.16 $ 2054 34 $ 881,189.12 $ 2055 35 $ 902,293.38 $ 2056 36 $ 923,904.89 $ 2057 37 $ 946,035.88 $ 2058 38 $ 968,698.87 $ 2059 39 $ 991,906.71 $ 2060 40 $ 1,015,672.53 $ 2061 41 $ 1,040,009.79 $ 2062 42 $ 1,064,932.29 $ 2063 43 $ 1,090,454.14 $ 2064 44 $ 1,116,589.80 $ 2065 45 $ 1,143,354.09 $ 2066 46 $ 1,170,762.18 $ 2067 47 $ 1,198,829.60 $ 2068 48 $ 1,227,572.27 $ 2069 49 $ 1,257,006.49 $ 2070 50 $ 1,287,148.96 $ 2071 51 $ 1,318,016.76 $ 2072 52 $ 1,349,627.43 $ 2073 53 $ 1,381,998.88 $ 2074 54 $ 1,415,149.50 $ 2075 55 $ 1,449,098.09 $ 2076 56 $ 1,483,863.94 $ 2077 57 $ 1,519,466.78 $ 2078 58 $ 1,555,926.83 $ 2079 59 $ 1,593,264.79 $ 2080 60 $ 1,631,501.88 $ 2081 61 $ 1,670,659.81 $ 2082 62 $ 1,710,760.85 $

Exhibit C-2

101,481.72 $ 234,656.25 $ 5,815,000.00 $ 101,481.72 $ 5,916,481.72 226,348.88 $ 150,438.88 $ 286,543.25 $ 6,041,348.88 $ 251,920.60 $ 6,293,269.47 234,950.13 $ 153,748.53 $ 292,847.20 $ 6,276,299.01 $ 405,669.13 $ 6,681,968.14 243,878.24 $ 157,131.00 $ 299,289.84 $ 6,520,177.24 $ 562,800.14 $ 7,082,977.38 253,145.61 $ 160,587.88 $ 305,874.22 $ 6,773,322.85 $ 723,388.02 $ 7,496,710.87 262,765.14 $ 164,120.82 $ 312,603.45 $ 7,036,088.00 $ 887,508.84 $ 7,923,596.84 272,750.22 $ 167,731.48 $ 319,480.73 $ 7,308,838.22 $ 1,055,240.31 $ 8,364,078.53 283,114.73 $ 171,421.57 $ 326,509.30 $ 7,591,952.94 $ 1,226,661.88 $ 8,818,614.83 293,873.09 $ 175,192.84 $ 333,692.51 $ 7,885,826.03 $ 1,401,854.72 $ 9,287,680.76 305,040.26 $ 179,047.09 $ 341,033.74 $ 8,190,866.30 $ 1,580,901.81 $ 9,771,768.11 316,631.79 $ 182,986.12 $ 348,536.48 $ 8,507,498.09 $ 1,763,887.93 $ 10,271,386.02 324,547.59 $ 187,011.82 $ 356,204.29 $ 8,832,045.68 $ 1,950,899.75 $ 10,782,945.43 332,661.28 $ 191,126.08 $ 364,040.78 $ 9,164,706.96 $ 2,142,025.82 $ 11,306,732.78 340,977.81 $ 195,330.85 $ 372,049.68 $ 9,505,684.77 $ 2,337,356.67 $ 11,843,041.44 349,502.26 $ 199,628.13 $ 380,234.77 $ 9,855,187.02 $ 2,536,984.80 $ 12,392,171.82 358,239.81 $ 204,019.95 $ 388,599.93 $ 10,213,426.84 $ 2,741,004.75 $ 12,954,431.58 367,195.81 $ 208,508.39 $ 397,149.13 $ 10,580,622.64 $ 2,949,513.13 $ 13,530,135.78 376,375.70 $ 213,095.57 $ 405,886.41 $ 10,956,998.35 $ 3,162,608.70 $ 14,119,607.05 385,785.10 $ 217,783.67 $ 414,815.92 $ 11,342,783.44 $ 3,380,392.38 $ 14,723,175.82 395,429.72 $ 222,574.91 $ 423,941.87 $ 11,738,213.17 $ 3,602,967.29 $ 15,341,180.46 405,315.47 $ 227,471.56 $ 433,268.59 $ 12,143,528.63 $ 3,830,438.85 $ 15,973,967.48 415,448.35 $ 232,475.94 $ 442,800.50 $ 12,558,976.98 $ 4,062,914.79 $ 16,621,891.77 425,834.56 $ 237,590.41 $ 452,542.11 $ 12,984,811.55 $ 4,300,505.19 $ 17,285,316.74 436,480.43 $ 242,817.40 $ 462,498.03 $ 13,421,291.97 $ 4,543,322.59 $ 17,964,614.56 447,392.44 $ 248,159.38 $ 472,672.99 $ 13,868,684.41 $ 4,791,481.97 $ 18,660,166.38 458,577.25 $ 253,618.88 $ 483,071.80 $ 14,327,261.65 $ 5,045,100.85 $ 19,372,362.51 470,041.68 $ 259,198.50 $ 493,699.37 $ 14,797,303.33 $ 5,304,299.35 $ 20,101,602.69 481,792.72 $ 264,900.87 $ 504,560.76 $ 15,279,096.05 $ 5,569,200.22 $ 20,848,296.27 493,837.54 $ 270,728.69 $ 515,661.10 $ 15,772,933.59 $ 5,839,928.91 $ 21,612,862.50 506,183.48 $ 276,684.72 $ 527,005.64 $ 16,279,117.07 $ 6,116,613.62 $ 22,395,730.69 518,838.06 $ 282,771.78 $ 538,599.77 $ 16,797,955.13 $ 6,399,385.41 $ 23,197,340.54 531,809.02 $ 288,992.76 $ 550,448.96 $ 17,329,764.15 $ 6,688,378.17 $ 24,018,142.31 545,104.24 $ 295,350.60 $ 562,558.84 $ 17,874,868.39 $ 6,983,728.77 $ 24,858,597.15 558,731.85 $ 301,848.31 $ 574,935.13 $ 18,433,600.23 $ 7,285,577.08 $ 25,719,177.32 572,700.14 $ 308,488.98 $ 587,583.71 $ 19,006,300.38 $ 7,594,066.06 $ 26,600,366.43 587,017.65 $ 315,275.73 $ 600,510.55 $ 19,593,318.02 $ 7,909,341.79 $ 27,502,659.82 601,693.09 $ 322,211.80 $ 613,721.78 $ 20,195,011.11 $ 8,231,553.59 $ 28,426,564.70 616,735.41 $ 329,300.46 $ 627,223.66 $ 20,811,746.52 $ 8,560,854.05 $ 29,372,600.58 632,153.80 $ 336,545.07 $ 641,022.58 $ 21,443,900.32 $ 8,897,399.12 $ 30,341,299.45 647,957.64 $ 343,949.06 $ 655,125.08 $ 22,091,857.97 $ 9,241,348.19 $ 31,333,206.16 664,156.59 $ 351,515.94 $ 669,537.83 $ 22,756,014.56 $ 9,592,864.13 $ 32,348,878.68 680,760.50 $ 359,249.29 $ 684,267.66 $ 23,436,775.06 $ 9,952,113.42 $ 33,388,888.48 697,779.51 $ 367,152.78 $ 699,321.55 $ 24,134,554.57 $ 10,319,266.20 $ 34,453,820.77 715,224.00 $ 375,230.14 $ 714,706.62 $ 24,849,778.57 $ 10,694,496.34 $ 35,544,274.91 733,104.60 $ 383,485.20 $ 730,430.17 $ 25,582,883.17 $ 11,077,981.54 $ 36,660,864.71 751,432.22 $ 391,921.88 $ 746,499.63 $ 26,334,315.39 $ 11,469,903.41 $ 37,804,218.80 770,218.02 $ 400,544.16 $ 762,922.62 $ 27,104,533.41 $ 11,870,447.57 $ 38,974,980.98 789,473.47 $ 409,356.13 $ 779,706.92 $ 27,894,006.88 $ 12,279,803.70 $ 40,173,810.58 809,210.31 $ 418,361.96 $ 796,860.47 $ 28,703,217.19 $ 12,698,165.66 $ 41,401,382.85 829,440.57 $ 427,565.93 $ 814,391.40 $ 29,532,657.76 $ 13,125,731.58 $ 42,658,389.34 850,176.58 $ 436,972.38 $ 832,308.01 $ 30,382,834.34 $ 13,562,703.96 $ 43,945,538.30 871,431.00 $ 446,585.77 $ 850,618.79 $ 31,254,265.33 $ 14,009,289.73 $ 45,263,555.06 893,216.77 $ 456,410.66 $ 869,332.40 $ 32,147,482.10 $ 14,465,700.38 $ 46,613,182.49 915,547.19 $ 466,451.69 $ 888,457.72 $ 33,063,029.29 $ 14,932,152.07 $ 47,995,181.37 938,435.87 $ 476,713.63 $ 908,003.79 $ 34,001,465.16 $ 15,408,865.70 $ 49,410,330.86 961,896.77 $ 487,201.33 $ 927,979.87 $ 34,963,361.93 $ 15,896,067.03 $ 50,859,428.96 985,944.19 $ 497,919.76 $ 948,395.43 $ 35,949,306.11 $ 16,393,986.78 $ 52,343,292.90 1,010,592.79 $ 508,873.99 $ 969,260.13 $ 36,959,898.90 $ 16,902,860.77 $ 53,862,759.68 1,035,857.61 $ 520,069.22 $ 990,583.85 $ 37,995,756.51 $ 17,422,929.99 $ 55,418,686.51 1,061,754.05 $ 531,510.74 $ 1,012,376.69 $ 39,057,510.56 $ 17,954,440.73 $ 57,011,951.30 1,088,297.90 $ 543,203.98 $ 1,034,648.98 $ 40,145,808.46 $ 18,497,644.71 $ 58,643,453.17 1,115,505.35 $ 555,154.47 $ 1,057,411.26 $ 41,261,313.81 $ 19,052,799.18 $ 60,314,112.99 1,143,392.98 $ 567,367.86 $ 1,080,674.31 $ 42,404,706.79 $ 19,620,167.04 $ 62,024,873.83

Combined Acquisition Properties

NARF - 1506 and 1522 Broadway St, 2705 Colorado Ave, and 1221 26th Street

NPV and Cash Flow

-Exhibit C-2: Current property valuation of all proposed exchange properties is $5,815,000. NARF's value is $3,850,000, appraisal provided by William Graff and Company. 2705 Colorado Ave's value is

$915,000, and 1221 26th Street is $1,050,000. Both appraisals provided by Lumino Inc. --The Model uses same term as The Academy's ground lease model for comparison.

--Annual property values are forecasted to increase by 3.8% for the next 10 years based on CBRE Boulder commercial real estate forecast. Boulder real estate property values are increasing higher than average, this trend will continue for the next ten years. It is expected that interest rates will need to increase in the future, which will negatively impact the annual property value increase. The model assumes from 2031 to 2082 annual property values will increase 2.5% annually.

--Annual rent increases is projected to increase by 2.2%. The 5 year average increase of Denver-Boulder-Greeley U.S. Bureau of Labor and Statistics Consumer Price Index (“CPI”) is used to determine the annual rent escalation . Lease maintained by Real Estate Services use CPI to calculate annual rent escalations.

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Discount Rate (i) 4% 6% 8%

NPV Appreciation $10,704,449.13 $6,721,361.11 $4,664,667.01

NPV NOI Only $1,228,011.84 $639,193.67 $352,979.76

NPV Appreciation and NOI: $11,932,460.97 $7,360,554.78 $5,017,646.78

Exhibit C-3

The Academy - 970 Aurora