1. BILL J. KIPF, SRA
REAL ESTATE APPRAISER
P.O. BOX 83577
BATON ROUGE, LA 70884
(225)766-6115
(225)766-6594 (fax)
INVOICE
November 19, 2012
Invoice #VL12-284
Mr. Jack McLarty
Citizens Bank & Trust
2925 Sherwood Forest Blvd.
Baton Rouge, La.
jack@cbtla.com
Appraisal Services:
1) David Remmetter
Capital Heights, Square 2, Lots #1 – 4
Government Street
Baton Rouge, La. ...........................................$1,100
Total...............................................................$1,100
KINDLY NOTE THAT PAYMENT IS DUE UPON RECEIPT AND IS CONSIDERED
PAST DUE AFTER 30 DAYS FROM THE ABOVE DATE.
THANK YOU FOR THE OPPORTUNITY TO BE OF SERVICE.

2. BILL J. KIPF, SRA
REAL ESTATE APPRAISER
P.O. BOX 83577
BATON ROUGE, LA 70884
(225)766-6115
(225)766-6594 (fax)
November 19, 2012
Mr. Jack McLarty
Citizens Bank & Trust
2925 Sherwood Forest Blvd.
Baton Rouge, La.
jack@cbtla.com
RE: David Remmetter
Capital Heights, Square 2, Lots #1 - #4
Government Street
Baton Rouge, La.
Dear Mr. McLarty
As requested, I have completed a study of the available pertinent data to arrive at an opinion of
"Market Value" as defined by the U.S. Treasury Department, Comptroller of the Currency 12 CFR
part 34, para 34.2(g) of the above captioned property.
It is the intention of the appraiser that this report conforms to the requirements set forth by the
Uniform Standards of Professional Appraisal Practices. Property rights appraised include the fee
simple title (Full Ownership) of the real estate, assuming no encumbrances against the property
which would make it more or less valuable but subject to all valid restrictions and servitudes of
record. Mineral rights have been excluded from the analysis.
In accordance with the competency provision of FIRREA, please note I have completed previous
appraisals of similar properties on an ongoing basis since 1976. I have not previously appraised the
subject property. The purpose of the appraisal has not altered the methodology, analyses or
valuation contained in this report.
The report was prepared at your request for mortgage lending purposes. It is not intended for the
use of the borrower, owner, or any other third party for any other purpose. It specifically is not
intended to be used for reliance by any other party without prior written authorization and
agreement by the appraiser. This appraisal assignment was not based on a requested minimum
valuation, a specific valuation, or the approval of a loan.

3. Citizens Bank & Trust
November 19, 2012
Page 2
Neither the material submitted nor the name of the undersigned appraiser may be included in any
prospectus, offering, or representations in connection with a sale to the public.
Based on the underlying assumptions and specific limiting conditions, the available data, and the
analysis presented in this report a reasonable and supportable opinion of the current market value
of the property is presented as:
Two Hundred Thirty Thousand Dollars
$230,000
The conclusions reached are based upon the available data and our present knowledge of the area
economy as of the date of inspection. The estimated market value is based upon competent and
efficient marketing and presumes no significant changes in the competitive position of the subject in
its immediate marketing area other than those set forth in this appraisal report.
Included are copies of the report showing the value conclusion as defined, and the data and
techniques used in arriving at that conclusion. The traditional contingent and limiting conditions of
the appraisal organizations with which I am associated are attached and made a part and parcel of
the report. This report has been made in conformity with and is subject to the Uniform Standards of
Professional Appraisal Practice (USPAP) and the Code of Professional Ethics and Supplemental
Standard of Professional Appraisal Practice of the Appraisal Institute, as well as the State of
Louisiana Certified Real Estate Appraiser Law.
Acceptance of and/or the use of, this appraisal report constitutes acceptance of all the assumptions
and the limiting and specific conditions stated within.
Respectfully submitted,
Bill J. Kipf, SRA
La. Certified General Appraiser #G0368
C:GovmentLandLTRcit

4. SUMMARY OF IMPORTANT CONCLUSIONS
LOCATION...................................................... Government Street @ Steele Blvd., Baton Rouge, La.
CENSUS TRACT.......................................................................................................................... 17
EFFECTIVE DATE OF APPRAISAL ...................................................................... November 18, 2012
CLIENT ...................................................................................................................... Citizens Bank
APPLICANT ..........................................................................................................David Remmetter
INTENDED USER........................................................................................................ Citizens Bank
SITE: ........................................................................................................................ +/-19,200 SF
IMPROVEMENTS ...................................................................................................................... N/A
ZONING............................................................................C-1 & B; Light Commercial & Transitional
FLOOD ZONE............................................................................................................................ "X"
HIGHEST AND BEST USE........................................................................................................Retail
INTERESTS....................................................................................................................Fee Simple
VALUE VIA THE COST APPROACH ............................................................................................ N/A
VALUE VIA THE SALES COMPARISON APPROACH, “AS IS” ................................................$230,000
VALUE VIA THE INCOME APPROACH ........................................................................................ N/A
ESTIMATED MARKETING TIME, “AS IS” ................................................ Approximately One (1) Year
ESTIMATED MARKET VALUE: ”AS IS”................................................................................$230,000
1

5. APPRAISAL PROBLEM
Value is defined in the 2012-2013 edition of USPAP as "the monetary relationship between
properties and those who buy, sell or use those properties". USPAP further comments that "Value
expresses an economic concept. As such, it is never a fact but always an opinion of the worth of a
property at a given time in accordance with a specific definition of value. In appraisal practice, value
must always be qualified - for example market value, liquidation value, or investment value."
This assignment was made at the request of Citizens Bank for the purpose of providing a credible
opinion of the estimated market value of the subject site.
The appraisal problem is to develop a supportable and credible opinion of current market value
within the scope of the assignment. Current surveys were not available. The objective of the
appraisal is to estimate the current market value of the subject site as outlined and described on the
available maps and as observed in the site visits. The appraiser reserves the right to amend this
report and all opinions of value pending a review of a current survey that is at material variance with
the description of the site outlined here.
This report follows traditional appraisal format and narrative reporting procedures and is intended to
be completed within applicable USPAP and FIRREA requirements for a summary appraisal report.
The property is described, the purpose of the study noted, the definition of value cited, and the
property rights of the client identified as of the valuation date.
After discussion of the neighborhood and site, the relevant influences of the current market are
considered as they relate to subject property in the Highest and Best Use Analysis. The three
traditional approaches to value were considered:
1) The Cost Approach
2) The Sales Comparison Approach
3) The Income Approach
The Cost Approach: This Approach involves the utilization of reproduction and replacement cost
involving new construction. It is particularly useful in feasibility studies, valuations of limited use
properties, or in cases where few/no properties similar to the subject have transacted. It also can be
used to establish the upper limit of value. This approach is generally considered to be most
2

6. applicable in the evaluation of new construction where large estimates of depreciation are not as
likely to be involved. It is less relevant and credible in the evaluation of older properties. It was not
applied as no improvements are included in the evaluation.
The Sales Comparison: This Approach is best in active markets. Verified actions of participants are
good evidence of anticipated future responses for similar properties. Limited data relating to similar
size land acquisitions were found from the immediate neighborhood and the search was expanded
to a larger geographical area. The fluid characteristics of the current market environment and the
more recent financial markets meltdown are noted.
The Income Approach: The capitalization technique chosen can range from rules of thumb to
varieties of present value analysis. The NOI may be the actual, annualized, or pro forma monies.
The analysis chooses a model best reflective of predominant choices in the market for subject. This
Approach references reasonably credible data to reflect the current terrain of the local market. This
approach was not included as subject evaluation includes only the site area and the property
produces no known income.
Finally, the report contains the certification, assumptions, and limiting conditions. The addendum
comprises exhibits and other reference data.
3

7. IDENTIFICATION OF THE PROPERTY
A current survey was not available for review. The property has been identified as Lots #1 - 4,
Square 2, Capital Heights subdivision and was observed to be located on the southeast corner of
Government Street and Steel Blvd.
4

8. PURPOSE OF THE APPRAISAL
The purpose of this evaluation is to provide a credible opinion of the estimated market value of the
subject site.
This appraisal was prepared at the request of Citizens Bank solely for its use in reviewing a
mortgage loan transaction. It is not intended for the use of the owner, a borrower, or any other
party for any other purpose. It specifically is not intended to be used for reliance by any other party
for any other purpose. The appraisal and this report have been prepared for the exclusive and sole
use of Citizens Bank for its use in review of a mortgage loan file.
The purpose of the appraisal has not altered the methodology, analyses, or valuation contained in
this report.
5

9. PROPERTY RIGHTS APPRAISED
The subject has been appraised in full ownership (fee simple) subject to valid restrictions and
servitudes of record. Fee simple title, as used herein, is defined as follows: "Absolute ownership
unencumbered by any other interest or estate; subject to the limitations of eminent domain,
escheat, police power, and taxation." No valuation is given to mineral rights in the ownership, if any.
The appraiser is not a property abstractor and no title research was completed in conjunction with
this appraisal. A review of published East Baton Rouge courthouse records does not indicate the
subject property has sold within the last five years, but was observed to have been acquired by
Agnes Shall and Lucille Collins from the succession of Joseph H. Lobianco via a Judgement of
Possession as recorded in Bundle 12282, Original 040.
The property is not known to be currently publicly listed for sale but is reported to be under contract
to sell at an undisclosed price.
6

10. SCOPE OF THE APPRAISAL
The appraisal is presented in a narrative report format as a Summary Appraisal Report based upon
an on-site visit and viewing of the property by the appraiser.
As a Summary Appraisal Report, the narrative includes a summary presentation of the data and
conclusions. All of the specific data and underlining analysis is not included in detail. The narrative
report outlines a summary of the appraisal process commensurate with the complexity of the
assignment and consistent with the property type and intended use of the report.
Several important assumptions have been made with regard to the identification and description of
the subject property. The appraiser is not a surveyor or abstractor and no title search was completed
on the property. Completion of an abstract and title opinion is outside the scope of this assignment.
The appraiser reserves the right to amend this report and all opinions of value pending review of a
current survey and abstract of the property that may be at material variance from that described
within this report.
The appraiser walked a portion of the property, although all of the specific boundaries of the tract
were not identifiable from a field inspection. The site was not staked. A current survey was not
available for review. The appraiser reserves the right to amend this report and all opinions of value
pending a review of a current comprehensive survey that is at variance with the site description
outlined.
It is also an important assumption of this report that there are no adverse environmental conditions
located on or near the properties that adversely affect the value or marketability of the subject site.
The appraiser is not schooled in such matters and is not qualified to render any such decisions. Any
concerns regarding environmental matters should be addressed by an expert in such endeavors.
The format of this written report is limited to a brief summary of the assignment's conclusions. The
site was visited, information was researched and collected from the local Multiple Listing Service
(MLS), local courthouse records, and existing office files of data relevant to the subject. The analysis
and conclusions entailed the application of various economic techniques together with appraisal
7

11. judgment in consideration of pertinent data, producing a final objective unbiased conclusion for the
real estate that is the subject of this appraisal report. As instructed, this report has been presented
for the exclusive use of the client for mortgage loan purposes. It is not intended for use by any other
party for any other purpose. It specifically is not intended to be used for reliance by any other party
for any other purpose without the prior written consent and approval of the appraiser.
IMPORTANT: There are two primary components of the appraisal assignment: 1) the appraisal, 2)
the report. This is a SUMMARY report of the appraisal. By definition it is a summary of the appraisal.
The working file is more inclusive and detailed and contains more information than is outlined in a
summarized narrative. The information contained in this report is specific to the needs of the client
and the intended use stated in this report.
8

12. DEFINITION OF MARKET VALUE
"Market Value" is defined by the United States Treasury Department, Comptroller of the Currency 12
CFR part 34, para. 34.2 (g) as,
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 knowledg-
eably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the
consummation of a sale as of a specified date and the passing of title from seller to buyer under
conditions whereby:
1) Buyer and seller are typically motivated;
2) Both parties are well informed or well advised, and acting in what they consider their
own best interests;
3) A reasonable time is allowed for exposure in the open market;
4) Payment is made in terms of cash in U.S. dollars or in terms of financial
arrangements comparable thereto; and
5) The price represents the normal consideration for the property sold unaffected by
special or creative financing or sales concessions granted by anyone associated with
the sale."
9

13. DATE OF THE APPRAISAL
The date to which this value estimate applies is November 19, 2012, the last date the site was
visited.
10

14. BATON ROUGE & NEIGHBORHOOD ANALYSIS
The subject neighborhood is generally considered roughly bound by Acadian on the west, Florida
Blvd. on the north, N. Foster Highway to the east and Claycut Drive to the south.
The primary traffic flow in the city of Baton Rouge has increased Parish wide but with particular
intensity along the expanding population base in the south and southeast quadrant of the parish and
has resulted in higher demand for real estate in the south and southeast sector. The southeastern
part of Baton Rouge has been the most rapidly growing area of the Baton Rouge market for the last
+/- 30 years.
However, the interest and intensity in the commercial and residential portion of the CBD and mid-
city real estate market has been more pronounced over the last ten to fifteen years. Noted is the
interest and activity related to the renovation and purchasing of older residential units within the
Beauregard and Spanish Town residential neighborhoods on the fringes of the CBD as well as that
observed in Capital Heights and nearby Roseland Terrace and Ogden Park.
Capital Heights and nearby Bernard Heights are primarily improved with modest single family
residences constructed in the 1940's and early 1950's. Most are simple wood frame residences
constructed on pier and beam foundations with less than 1,500 square feet of area. There has been
substantial interest in the area in recent years and renovation and refurbishing efforts have been
intense in Capital Heights on the opposite side of Government Street. There are some small multi-
family projects interspersed throughout Capital Heights and Bernard Terrace.
The rental market in the neighborhood is considered stable. Public transportation is available to the
neighborhood on Government Street. Parking facilities for most uses are suitable and accessible.
Although the local real estate market has slowed over the last 36-48 months relative to the intense
levels observed immediately post-Katrina, the local economy and overall real estate market is
healthier relative to many of the market areas around the country as related by media publications
and reports.
While the local real estate market is described as “stalled”, it is not considered to be in a severely
declining mode. Commercial construction increased in 2010 to $523 million compared to the $216
11

15. million in 2009 and residential construction increased approximately 11% relative to 2009.
However, the total 2010 house sales in the Capital Region dropped 7.7% for the year, compared to
2009. There were 6,366 houses sold in the region, compared to 6,899 in 2009, according to the
local MLS. The average sales price increased by 2.2% from $191,229 in 2009 to $194,450 in 2010.
Expounding – home sales in East Baton Rouge Parish dropped by 12.3% in 2010, from 3,985 to
3,496 with the average price increasing to $205,629, compared with $197,508 in 2009, but 2011
sales volume in East Baton Rouge increased 2.6% from 2010 figures. Livingston Parish home sales
dropped by 10%, from 1,236 in 2009 to 1,116 in 2010 and then again in 2011 to 1,104. In
Ascension Parish sales dropped from 1,271 MLS sales in 2009 to 1,249 in 2010, but increased in
2011 to 1,290 houses sold. However, the slight increase in 2011 continued – and then accelerated
in the first quarter of 2012 with residential sales activity year-to-date through October up some 15%
over the previous year. In contrast, Capitol Region home sales had dropped nearly every year since
2005, when they hit a peak of 11,349 due to the impact of Hurricane Katrina.
Over the last 36-48 months the factors that are considered to have had more of an influence over
the local real estate market have more to do with the negative psychology engendered by the
collapse of the stock market in the Fall of 2008 along with the national economic downturn and the
attendant credit crunch. The lack of confidence in the government's ability to manage and inject
effective corrective measures exacerbated the circumstance. While the overall local economy and
real estate market is considered to be generally stabilized (albeit badly stalled), local market
participants are now citing the national economy and increased concerns over future prospects as a
factor in their deliberations.
12

16. LAND DATA
A current survey was not available for review. The property has been identified as Lots #1 - 4,
Square 2, Capital Heights subdivision and was observed to be located on the southeast corner of
Government Street and Steel Blvd.
From review of subdivision maps, the subject site is observed to include four contiguous lots with an
aggregate total of 120 feet of frontage along the south side of Government Street and frontage of
160 feet along the east side of Steele Boulevard. The total site area is calculated as approximately
19,200 square feet.
Typical utility servitudes and building set-backs are assumed. By observation and review of available
maps, there appears to be a servitude or alley right-of-way on the far east side of the site running
from Government through the depth of the site parallel to Steele Boulevard. As of the date of
inspection, there appears to be some ongoing work taking place along this area.
Analysis of the Federal Flood Insurer's Rating Map appears to indicate the site is zoned "X" and
“X500L”. The areas zoned “X” and “X500L” are those in which flood insurance is not mandatorily
required by lenders. The elevation of the ground was observed to at the street level of Steele
Boulevard and at, or near the street grade of Government Street. By observation, the subject site is
below the elevation of the adjoining property to the east facing Government Street.
For reference purposes, an exhibit of the zoning in the area and the flood plain information has been
included in the report, but a current comprehensive survey is highly recommended to identify and
verify the topography and dimensions.
No soil or subsoil tests were made. No warranty is expressed or implied as to the continued
suitability of the soil for improvement. Observation of surrounding structures leads to the
assumption that soil conditions are sufficient for structural support over an economic life span.
All utilities necessary for the operation of business facilities are assumed available to the site. This
includes water, electricity, sewage treatment, telephone, etc.
13

17. This portion of Government Street is a four-lane concrete street serving as one of the primary traffic
arteries in this area of town. It has concrete curbs, gutters and sidewalks. Steele Boulevard is a
narrower, two-lane asphalt street with no curbs, gutters or sidewalks. It is a residential street.
In conclusion, the site is functionally adequate. It offers attributes typical of the area. Major features
are location and size.
14

18. ZONING
The Zoning Ordinance of Baton Rouge (the Parish of East Baton Rouge) divides the land into
Districts. Within these Districts conditions such as use, height, number of stories, size of buildings,
yards, open spaces, density of the applied use, and location of structures are regulated. Presently
the following Districts are defined:
A - Residential
B - Transition
N - Neighborhood
GO - General Office
C - Commercial
LC - Light Commercial
HC - Heavy Commercial
CW - Commercial Warehousing
M - Industrial
R - Rural
H - Historic
RA - Riverside Area
The Zoning Ordinance of Baton Rouge (the Parish of East Baton Rouge) divides the land into
Districts. Within these Districts conditions such as use, height, number of stories, size of buildings,
yards, open spaces, density of the applied use, and location of structures are regulated.
That portion of the subject site consisting of Lots #1 – 3 fronting Government Street appear to be
zoned C-1, Light Commercial, while the fourth lot, identified as Lot #4 fronting Steele Boulevard is
indicated to be zoned B, Transitional.
15

19. TAX ANALYSIS
Tax assessment is the responsibility of the Parish Tax Assessor's office. Tax collection is the duty of
the Sheriff's Office. The State pays the taxes to the Parish Tax Assessor on the exempt amount and
the excess amount is due from the property owner. Property taxes are due December 31 of each
year. They are considered delinquent after January 15 of the current year.
Property taxes within the state of Louisiana are not generally considered to have an adverse affect
on marketability. The subject property is currently reported on the EBR Parish Sheriff site as:
Lots #1 & #2, Sq. 2 Capital Heights; Assessment # 007-1552-2:
Land...................................... $2,000
Improvements ....................... $2,250
Total...................................... $4,250
2011 taxes............................. $454.39
Lot #3, Sq. 2 Capital Heights; Assessment # 007-1551-4:
Land...................................... $1,000
Improvements ....................... $ -0-
Total...................................... $1,000
2011 taxes............................. $106.93
Lot #4, Sq. 2 Capital Heights; Assessment # 007-1553-0:
Land...................................... $1,050
Improvements ....................... $ -0-
Total...................................... $1,050
2011 taxes............................. $112.30
16

20. HIGHEST AND BEST USE ANALYSIS
Highest and Best Use is defined as the reasonable and probable use that supports the highest
present value of vacant land or improved property, as defined, as of the date of appraisal.
Highest and Best Use analysis is first directed to the site as vacant. Subsequently, any improved
property (if any) is analyzed.
The analysis involves a process whereby the attributes of the property are reviewed through the
following criteria of physically possible uses, legally permissible uses, financially feasible uses and
maximally profitable uses to estimate a reasonable probable use expectation.
Physically Possible Use Analysis: The "as is" physical possibility is limited by the site size, shape,
topography, location, and flood statistics. The physical characteristics of the site have been outlined.
Most of the site appears to be cleared and located outside of the designated flood hazard area.
While the subject site is currently improved with a dated wood frame garage/storage building, only
the vacant land is included in the analysis. The dated garage/storage building is not considered to
have any material contribution to value.
The subject site includes approximately 120 feet of street frontage on Government with additional
frontage of 160 feet along the east side of Steele Blvd.
Legally Permissible Use Analysis: Legally permissible uses are typically limited by zoning and
encumbrances (right of ways, servitudes, city ordinances, etc.).
The subject property is reported to be currently zoned "C1" along Government Street with the rear
portion of the lot reported to be zoned B, Transitional. It is a reasonable assumption that
development of the property with mixed, light commercial uses compatible and consistent with the
Government Street corridor would be acceptable.
The City of Baton Rouge and Parish of East Baton Rouge offers public services to include fire and
police protection, building, safety and health codes. The interests of the owner are fee with typical
marketable encumbrances and restrictions.
17

21. Financial Feasibility Analysis: Financial feasibility is related to the return which an investor can
expect from a property when developed. Subject is located in a portion of the market area that has
experienced consistent degrees of commercial utilization over the last several decades, although the
built-up characteristics of the area have not allowed for a large sample size of transactions involving
unimproved site areas.
Subject site is positively linked to the suburban population of the older, established area of
Baton Rouge located in proximity to the “Mid-City” area of the local market. Other real estate in
this neighborhood is typically occupied by light commercial entities on the more heavily traveled
streets with the residential uses located on the side streets. The Government Street corridor
between S. Eugene and Jefferson Highway is an older, stable commercial corridor that includes
a mix of retail entities, 40-50 year old office buildings and some commercial service entities.
The commercial uses along the corridor include a mix of some aged and dated facilities as well
as some updated and refurbished commercial entities. The corridor is considered generally
stable, but not prime. The steady volume of traffic along the corridor and the proximity to
attractive and upscale residential developments (Capital Heights, Glenmore, Steel Place, etc.)
are attributes. Community involvement and active merchants associations are also assets that
contribute to the generally stability of the area. Still, there are some dated listings of some
unimproved land tracts along Government Street (i.e. the former Giamanco’s site and the
former D.J.’s Beauty Supply site) that have been offered for sale for years now with no success.
In both instances, the improvements on each of the referenced sites have been removed to
prepare the respective sites for re-development. The corridor also includes some commercial
entities that have not experienced any material updating in years and reflect a more dated
appeal and design.
The former Westmoreland Shopping Center site located about ½ mile to the west had been
listed for sale on the market as a nearly defunct Shopping Center for a number of years, with
various re-development proposals and interested parties expressing various degrees of interest
for a number of years before the property was finally acquired in December 2010 by the
adjoining property owner for unspecified and, as yet, undetermined future utilization (the
unimproved site area is now in an interim use as parking and practice area for Catholic High
School with the small retail strip continuing in use as such).
18

22. The last seven years have been quite volatile with a heated post-Katrina demand for real estate
resulting in a plethora of new construction which appears to have exceeded demand in the changing
local demographics and softening market environment. Speculative development and new
construction has been stymied throughout the local market over the last four years due to a
softening of the market and tightened credit and underwriting restrictions. The manifestation of the
changing market has been weakened demand in most segments of the real estate market and
general lack of interest and/or support for new development projects. The result is a lack of demand
for development sites and unimproved land.
The current market environment reflects the changing dynamics. The likely buyer would be a local
oriented investor or – more likely – owner/user.
Highest and Best Use Conclusion: Alternative uses have been reviewed for the subject tract. The
forecasted potential use for the subject tract is for a small, owner-occupied commercial site. Timing
is an unknown. The development of the subject as a small commercial facility is considered to be
potentially physically possible, legally permissible, financially feasible, and maximally profitable.
19

23. SALES COMPARISON APPROACH
Land is usually valued by market comparison via the Sales Comparison Approach. This Approach is
based upon the assumption that prudent buyers sort among suitable alternatives in an attempt to
acquire properties which maximize values gained for monies given. Sales, listings and offers to buy
properties considered similar to subject are sought. Data found is sorted, and analyzed in an attempt
to allocate monetary sums to dissimilarities. Adjustments are made to these data to reflect variances
and the valuation of subject is estimated.
Reviewed were a number of recent sales and competitive listings of competitive size sites in this
market. The reviewed sales and listings combine to present an illustrative indication of the recent
trading range and current, post-Katrina listing range for land in the competitive market area. Note
that not all of the cited sales/listings are considered to be directly comparable or competitive to the
subject. However, they will tend to frame the recent trading range for similar size sites in this
market. It is recognized the recent slowdown in the local real estate market has produced a smaller
sample size of recent relevant sales. The small sample size of recent transactions also underscores
the assertion that the market has slowed and the marketability of development tracts is currently
tenuous.
The reviewed data from neighborhood site sales exhibit less consistency due to the small sample
size of recent, relevant sales in an area that has been essentially built-out for a number of years. A
survey of competitive area sales and listings was made and found to range from less than $9.00/SF
to over $16.00/SF. Following is a summary of some of the reviewed property transactions:
COMPARABLE SIZE PRICE DATE $/SF
1) Florida @ N. Acadian 17,455 SF $ 149,000 10/05 $ 8.54
2) Government St. 19,200 SF $ 170,000 8/07 $ 8.85
3) Government at Jefferson 121,968 SF $1,100,000 LISTING $ 9.00
4) 8245 Florida Blvd. 20,909 SF $ 209,010 2/09 $10.00
5) Florida Blvd. (service road) 33,541 SF $ 345,830 4/10 $10.30
6) Convention St. @ Kernan 20,800 SF $ 230,000 LISTING $11.06
7) Acadian @ Convention 17,840 SF $ 230,000 6/08 $12.89
8) Government St 52,125 SF $ 675,000 8/07 $12.95
9) J.D. Garig Tract 65,000 SF $ 850,000 LISTING $13.10
10) Government @ Glenmore 14,400 SF $ 195,000 4/09 $13.54
11) 5101 Government St. 21,344 SF $ 339,000 LISTING $15.88
12) Government St. 4,800 SF $ 77,500 LISTING $16.15
Several additional sales and listings not cited above were also reviewed.
20

24. Due to inefficient markets, limited transactions, simultaneous decisions, etc., the actual results of
the adjustment process usually only present a more closely representative array of values. Not all of
the cited comparables are considered directly competitive to the subject. As noted, some were
included for informational purposes
Due to the variance in specific locational and physical characteristics and the limited sample size of
recent comparable sales data, a qualitative comparison was applied. The adjustments to price per
square foot typically include:
1. Interests conveyed. The comparables were not adjusted for this factor.
2. Financing terms. Where financing terms are considered atypical, a cash equivalence
adjustment is made.
3. Conditions of sale. Where motives were at question, sales were either discarded, or
weighted accordingly.
4. Market conditions (time). The Baton Rouge market has experienced rapid growth and
expansion over the previous 10 years. Some of the cited transactions are located along
intense growth corridors. No positive adjustments have been made for time for transactions
occurring within the last 36 months as the market has slowed over the last three-to-four
years.
5. Location. Some locational adjustments were made to reflect the variance in property values
associated with specific location of the various properties.
6. Physical. Adjustments for size, functional, and any other potential physical differences are
made as needed. Typically, larger parcels will sell for a lower unit price than smaller parcels.
Often, the variance in size will off- set other physical characteristics.
After review of the sales activity outlined and cited above, and in consideration of the physical
characteristics of the subject, including location, frontage-to-depth ratio, access, etc., a unit value of
approximately $8.00/SF to over $15.00/SF of site area is considered a reasonable and supportable
estimate of the value of the site.
Primary emphasis is accorded the sales identified as Comparable #8 and Comparable #10. Both are
multi-lot sites located on Government Street in close proximity to the subject.
21

25. Comparable #8 is a larger site located on the south side of Government Street less than ½ Mile east
of the subject. Like the subject it has frontage on Government Street and two side streets. This
property was last transacted at a unit price of $12.95/SF. It is now currently listed for sale at
$15.83/SF, but has been listed for sale for nearly five years.
Comparable #10 is a recent sale of a small corner lot located about ¼ mile from the subject. This
property has frontage on both Government Street and Glenmore. The site was improved with an old
service station building at the time of sale that was accorded no material value by the seller, but
which was extensively refurbished for utilization as a fast food facility (Caesar's Pizza). The unit
value of the site (land only) in this transaction was $13.54/sq.ft.
Comparable #2 is a sale that actually involved a simple metal car wash at the time of the sale. The
outlined unit value of $8.85/SF calculates the outlined unit price of the site if the entire transaction
price was allocated to the land. It is considered a reasonable indication of the lower end of the site
value of the subject.
Comparables #9 and #11 are both current listings of sites located on the north side of Government
Street less than one mile from the subject, east of Foster Drive. They are considered representative
of the upper end of the unit value range that would be attributed to the subject with unit price
indicators of $13.10/SF and $15.88/SF respectively.
Comparable #12 is primarily improved for information purposes as it is located very near the subject
on the south side of Government Street. It is a much smaller lot and is an interior site with no
corner influence. This property is a current listing at $16.15/SF.
Comparable #3 is a much larger site that is primarily included for informational purposes. It is
located much further to the east and the larger size results in a lower unit value due to the
influences of economies of scale.
22

26. Comparable #4 & #5 are not located on Government Street, but they are competitive size sites
located on quasi-competitive Florida Blvd. that provide some indication of the recent trading range
for similar size commercial sites located on established traffic corridors in this area of the market.
Comparable #6 is an unconventional shaped commercial site with less exposure and visibility
located just off the intersection of Florida and Acadian near the Baton Rouge General Hospital. The
current list price at $11.06/SF for an inferior site is instructive. The list price of this property may
have been influenced by the sales price of the adjoining site identified as Comparable#7, which sold
in June, 2008 at $12.89/SF and was subsequently improved with a small commercial strip center.
Summarized, the cited comparables include relatively recent transactions of competitive size sites
with similar and competitive physical and locational characteristics in the same metro market area as
the subject. They tend to frame the recent trading range (expected and actual).
As noted, the current market is stalled. The recent level of inactivity results in a reduced sample size
of transactions from which observable trading tendencies can be measured. The lack of activity
inherently results in a real estate environment with challenging marketing characteristics featuring
fewer buyers or interested parties. Extended marketing times should be expected until such time as
the environment changes. This more favorable environment will include a change in supply-demand
characteristics and more favorable credit and regulatory guidelines.
In consideration of the reviewed data, a unit value of $12.00/SF is considered to be a reasonable
and supportable opinion of the current market value of the outlined subject site. The calculation is
19,200 sq.ft. x $12.00/SF = $230,400, rounded to $230,000.
Attached are data sheets outlining the details of the cited comparables.
Summarized, the cited comparables include relatively recent transactions of competitive size sites
with similar and competitive physical and locational characteristics in the same immediate market
area as the subject. They tend to frame the recent trading range (expected and actual).
23

27. Several recent sales as well as current and "expired" listings were examined. The physical
differences are noted. However, the location of those properties within the same neighborhood
and/or competitive market area renders each relevant for discussion within the report. The cited
comparables are considered representative of the current market. They assist in outlining the
trading range in the local market for competitive sites.
The variance in the indicated value range is attributed to inefficient markets, limited transactions,
simultaneous decisions, etc. as well as the variance in specific locational attributes and physical
characteristics.
In final review and consideration, a current opinion of the market value estimate of the subject
property is presented as $230,000.
24

28. THE COST APPROACH TO VALUE
The Cost Approach is based upon the assumption that a prudent buyer will pay no more for a
particular parcel of real estate than that price at which he could acquire similar land and construct
similar improvements. Reproduction cost new of the facilities is estimated on a similar site. Where a
successful enterprise is noted, a developer's profit is included to reward entrepreneurial effort, risk,
and success. A deduction is made for accrued depreciation due to losses in value caused by physical,
functional, or external deficiencies.
The Cost Approach was not applied as no improvements are included in this evaluation.
25

29. THE INCOME APPROACH TO VALUE
The Income Approach is based upon the principle of anticipation. In expectation of benefits from
ownership, investors sort investment properties in keeping with their perceived notions of risk. The
quality, quantity, and duration of income streams is compared to alternative investment
opportunities and risks to formulate decisions regarding participation in the market for income
producing real estate. The presumption is that actual actions of these participants give evidence to
the valuation process applicable to other income properties.
As with the Cost Approach, The Income Approach was not completed as no improvements are
included in this evaluation.
26

30. RECONCILIATION
The subject property has been reviewed and appraised. The three traditional appraisal approaches
to estimate its value have been considered.
The Cost Approach was not applied as no improvements are included in the valuation.
The Income Approach was not applied as the property does not produce income.
In the Sales Comparison Approach, recent competitive sales and listings were reviewed. Included in
the review were several sales and listings of competitive sites in the competitive market area that
frame the recent trading range.
Activity on sales of vacant land had been increasing over the previous several years before
moderating over the last four years in the face of a recent slow-down in real estate activity and a
dysfunctional national financial market environment. The ripple effects of the Hurricane Katrina
event increased the demand for well-located sites, but that intense level of abnormal activity has
now dissipated with the market stalled and speculative development projects generally discouraged.
Included in the review were several sales of tracts from competitive areas outside the immediate
neighborhood area as well as those closer to the subject. Also included in the review were recent
listings in the vicinity of the subject.
Over the last three to four years the local real estate market has reflected a level of transition as the
market seeks an adjustment to a new equilibrium, with demand and supply more in balance and an
oversupply within more segments of the market. All of this occurring in tandem with consistent
headline news over the last four years regarding the adjustments in the financial markets resulting
from the sub-prime fiasco, the erosion of the stock market in 2008, and the collapse of FNMA and
associated lenders and insurers. With one eye on the uncertain new environment that is evolving
from the new re-structured lending industry with current risk-adverse lending postures and
accelerated levels of regulation; and another eye on a transitional Post-Katrina market locally, with
an increasingly tenuous national economy and credit market, uncertainly is the rule. Simply
summarized, the market is considered to be fluid, transitional, and susceptible to vulnerabilities over
27

31. the last couple of years that were not forecast before the sub-prime fiasco. With limited trading
resulting in a smaller sample size of sales data, at best a range of value can be approximated. From
this, a point estimate is presented that can be reasonably supported by the available data within the
context of the aforementioned market characteristics, but with full acknowledgement that the
dominant characteristic of this market remains one of extreme and unprecedented transition.
Outlined within this report are conditions that reflect a softer real estate market and tighter credit
market relative to 3-4 years ago. Current market activity is less intense relative to four or five years
ago although the subject is located in an area that is considered to have generally stable
characteristics with some opportunities for “in-fill” development potentials. The nearer term is
considered to be more problematic, but the general interest and community involvement along the
Government Street corridor and the historical experience in this area along with the stable and
desirable residential neighborhoods on the south side of Government Street generally portends
optimistic forecasts for marketing and development activity in the immediate vicinity of the subject.
Still, the timing is unknown. In final review and consideration, a reasonable and supportable opinion
of the current market value estimate of the subject site is presented as:
Two Hundred Thirty Thousand Dollars
$230,000
The current market environment has been experiencing the same dynamics over the last two to four
years. Accordingly, both exposure time and marketing time are considered to be similar. Projected
marketing/exposure time is estimated at approximately 12 months. The traditional contingent and
limiting conditions of the organizations with which I am associated is attached and made a part of
this report.
Respectfully,
Bill J. Kipf, SRA
La. Certified General Appraiser #G0368
C:GovmentLandRPT
28

32. CERTIFICATION OF THE APPRAISER &
CONTINGENT AND LIMITING CONDITIONS
I certify that, to the best of my/our knowledge and belief,...
-the statements of fact contained in this report are true and correct
-the reported analyses, opinions, and conclusions are limited only by the reported assumptions and
limiting conditions, and are my/our personal, unbiased professional analyses, opinions, and
conclusions.
-I/We have no present or prospective interest in the property that is the subject of this report, and
I/we have no personal interest or bias with respect to the parties involved.
-my/our compensation is not contingent on an action or event resulting from the analyses, opinions,
or conclusions in, or the use of, this report.
-my/our analyses, opinions, and conclusions were developed, and this report has been prepared, in
conformity with the requirements of the Code of Professional Ethics and the Standards of
Professional Practice of the appraisal organizations with which I/we are associated.
-the use of this report is subject to the requirements of the appraisal organizations with which I/we
are associated relating to review by its duly authorized representatives.
-I am currently certified under the voluntary continuing education program of the Appraisal Institute.
-I/we have made a personal inspection of the property that is the subject of this report.
-no one provided significant professional assistance to the person(s) signing this report.
-I have not previously appraised the subject property
29

33. The certification of the Appraiser appearing in the appraisal report is subject to the following
conditions and to such other specified and limiting conditions as are set forth by the Appraiser in the
report.
1. The Appraiser assumes no responsibility for matters of a legal nature affecting the property
appraised or the title thereto, nor does the Appraiser render any opinion as to the title, which is
assumed to be good and marketable. The property is appraised as though under responsible
ownership free and clear of unstated encumbrances, encroachments, or trespass.
2. Any sketch in the report may show approximate dimensions and is included to assist the reader
in visualizing the property. The Appraiser has made no survey of the property and engineering
reviewed is assumed correct.
3. The Appraiser is not required to give consultation, testimony, or appear in court because of
having made the appraisal with reference to the property in question, unless arrangements have
been previously made therefor. Delivery of the report constitutes completion of the assignment.
4. Any distribution of the valuation in the report between land and improvements applies only
under the existing program of utilization. The separate valuations for land and building must not
be used in conjunction with any other appraisal and are invalid if so used.
5. The Appraiser assumes that there are no hidden unapparent conditions of the property, subsoil,
or structures, which would render it more or less valuable. The Appraiser assumes no
responsibility for such conditions, or for engineering which might be required to discover such
factors.
6. Information, estimates, and opinions furnished to the appraiser, and contained in the report,
were obtained from sources considered reliable and believed to be true and correct. However,
no responsibility for accuracy of such items furnished the Appraiser can be assumed by the
Appraiser.
7. Disclosure of the contents of the appraisal report is governed by the Bylaws and Regulations of
the professional appraisal organization with which the Appraiser is affiliated.
8. Neither all, nor any part of the contents to the report, or copy thereof (including conclusions as
to the property value, the identity of the Appraiser, professional designations, reference to any
professional organization, or the firm with which the Appraiser is connected) shall be used for
any purposes by anyone but the client specified in the report. It shall not be conveyed by
anyone to the public through advertising, public relations, news sales or other media, without
the written consent and approval of the Appraiser and then only in its entirety.
9. On all appraisals, subject to satisfactory completion, or alterations, the appraisal report and
value conclusion are contingent upon the improvements in a workmanlike manner.
30

34. 10. It is assumed that there is full and renewable compliance with all applicable federal, state, and
local enactments of the police power unless noncompliance is stated, defined, and considered in
the appraisal report.
11. Unless otherwise stated in this report, the existence of hazardous substances, including without
limitation asbestos, polychlorinated biphenyls, petroleum leakage, or agricultural chemicals,
which may or may not be present on the property, or other environmental conditions, were not
called to the attention of nor did the appraiser become aware of such during the appraiser's
inspection. The appraiser has no knowledge of the existence of such materials on or in the
property unless otherwise stated. The appraiser, however, is not qualified to test such
substances or conditions. If the presence of such substances, such as asbestos, urea
formaldehyde foam insulation, or other hazardous substances or environmental conditions, may
affect the value of the property, the value estimated is predicated on the assumption that there
is no such condition on or in the property or in such proximity thereto that it would cause a loss
in value. No responsibility is assumed for any such conditions, nor for any expertise or
engineering knowledge required to discover them.
Respectfully,
Bill J. Kipf, SRA
Louisiana Certified General Appraiser #G0368
31

35. SUBJECT PHOTO
Front view of the site as seen from Government St.

36. View of property as seen from Steele Blvd.
View from the rear of the site

37. Street Scene. Government St. looking west
Street Scene. Government St. looking east

38. Street Scene. Steele Blvd. looking south
Street Scene. Steele Blvd. looking north to Government St.

39. SUBDIVISION MAP

40. ZONING MAP

41. AERIAL MAP