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MEMORANDUMTo:Shelley Navari, Vice President of Finance, Champlain CollegeFrom: David G. WhiteDate: March 10, 2020, Revised February 28, 2021Re:8 Browns Court – Economic Feasibility AssessmentThis memorandum summarizes my analysis and findings relative to the economicfeasibility of renovating Champlain’s two-unit residential building located at 8 BrownsCourt. The original report used data from the June 2019 Allen, Brooks and Minor Report(ABMR), which is the most comprehensive database of income, expenses, and salesvalues for commercial and investment properties in the Chittenden County area. Thisrevised report uses data from the more recent June 2020 ABMR.In August 2018, a two-unit building owned by Champlain College located at 8 BrownsCourt was damaged by fire. Since then, it has been vacant while Champlain evaluated itsoptions for the property. Initially the assumption was that it would renovate and re-leasethe units. Extensive renovations would be required throughout due to considerable smokeand water damage.Subsequently, an analysis done in May 2019 by Engineering Ventures made it clear evenmore renovations would be needed. Their analysis determined the property is notcurrently structurally sound due to problems with the foundation and roof which theyidentified. Following this HP Cummings Construction was asked for a cost estimate forthe required renovations.

My scope was to evaluate the post-renovation value of the property and render an opinionas to whether it is economically feasible to proceed. To accomplish this, I usedinformation from Champlain regarding historic rental income and operating costs andfrom ABMR. Based on these sources and using industry-standard methodology, Iprepared an operating proforma and value estimate.Factors used in proforma analysis and valuationThe subject property, 8 Browns Court, is a wood-frame clapboard structure built in 1899.It has two-units (one 1st floor and the other on the 2nd floor). Each unit has two bedroomsand a single bathroom. The 1st floor unit is approximately 713 square feet and the 2ndfloor unit is approximately 629 square feet.Income –Rental income – ABMR indicates 2-bedroom units average 1,361/month rentplus tenants pay their own utilities. Such units typically average between 960 to 1,100square feet. Thus, the subject units are considerably smaller than typical. Historically, thesubject property has been rented with utilities included because the utilities are notseparated. Champlain reports utilities have cost 3,100/yr or about 129/month for eachapartment. This is confirmed by ABMR which indicates utilities typically averageapproximately 126/month per unit. The larger of the two units in the subject property isabout 74% of the size of the small end of the typical range. A direct pro-ration of averagerents indicates a monthly rent of 1,007. I judge this to be lower than the likely rent.While such small units are likely to rent for something less than the average market rent,to be conservative I nonetheless elected to use ABMR’s average rent of 1,361/monthplus utilities of 129 totaling 1,490/month for each apartment. This will tend tooverestimate the property value.Vacancy rate – ABMR shows current apartment vacancy rates in the urban area ofChittenden Country (as distinct from suburban areas) to be 2.8%, with a county-widelong-term average vacancy rate of 1.8%. It is questionable whether the averages apply toa two-unit building because if even one unit is vacant for a single month after one tenantleaves and before another occupies (for cleaning, repairs, etc.), that would be 4.2%vacancy. Nonetheless, to be conservative I have elected to assume the lowest vacancyrate of 1.8% in this analysis. This will tend to overstate the property value.Operating Expenses –Repairs & Maintenance – Champlain has limited operating history on which tobase long-term actual average maintenance expenses. I have elected to use ABMR, whichshows 1,834 per year average repairs & maintenance per unit. This would total 3,668.Page 2 of 4

To be conservative, I have reduced it to 3,000 per year total for my analysis. This willtend to overstate the value.Snow removal and grounds – ABMR shows 369/unit/year for a total of 738. Ihave used 500/year because there is no driveway or parking to plow. Nonetheless, thereis an entry walk and stairs to shovel as well as modest grounds to mow and maintain.Rubbish removal – I have assumed 50/month combined for 600 total per year.Utilities – I have used actual costs obtained from ChamplainManagement – I have applied a cost of 5% of gross income, which is at the lowend of what is typical in the market. ABMR assumes 8%. I’ve also assumed 170/yearaccounting and legal costs.Property Taxes – The City currently shows 6,349/year.Insurance – I’ve used 600/year based on an estimate from Champlain.Replacement reserve – I’ve used a conservative 2% factor.Value estimate –Cap Rate – The value of a rental property is generally a function of the NetOperating Income (NOI) it is expected to generate and the market Capitalization Rate or“Cap Rate”. Cap Rate is the ratio between NOI and the sales price of a property. CapRates are determined based on what investors are paying for similar properties in thesame market area. Through the first half of 2020 ABMR shows an average 6.6% CapRate for 3 to 4-unit residential properties in the broader Chittenden County area. They donot supply Cap Rates for smaller rental properties. This is higher than the 6.2% cap ratethey measured for 3 to 4-unit properties in 2019, which was the lowest rate they havemeasured for at least a decade. Because a lower Cap Rate results in a higher value, to beconservative I have elected to use this lower rate.Value – Based on the forgoing, the property is projected to have Effective GrossIncome of 35,116, Operating Expenses of 16,777, and an NOI of 18,339. Using a caprate of 6.2% generates a value of 295,793.Government Property Assessment – As one indicator, I also examined the City ofBurlington assessment for the property, which is 206,300. The state’s Common Level ofAppraisal (CLA) for Burlington (CLA is the state’s estimate of the ratio between aPage 3 of 4

municipality’s property assessments and actual market value), is 74.77%. Applying thisto the assessed value of 206,300 derives a rough estimate of the actual market value tobe 275,913. While this cannot be relied on for a firm conclusion of actual value itnonetheless generally supports my estimate of value.ConclusionBased on the above-described analysis I estimate the maximum post-renovation value of8 Browns Court to be 295,000 (copy attached). Because I have elected to use multipleconservative assumptions which tend to cause the value to be over-stated, the actual valueis likely lower. Regardless, the HP Cummings estimate, dated 1/8/2020, (copy attached)totaling 406,879 is 38% higher than this maximum estimated value.My conclusion is that renovating 8 Browns Court is not economically feasible.I am happy to answer any questions you may have.Page 4 of 4

DEVELOPMENT PROFORMA ANALYSISPROJECT: Browns Court RehabilitationDATE:02/28/21SCENARIO: valuationMonthlyStabilizedYr 1REVENUESRentBase Rents1st flr - 2 bedroom, 713 SF(utilities included) 1,490.0017,8802nd flr - 2 bedroom, 629 SF (utilities included) 1,490.0017,880Gross Rent35,760Vacancy Rate:Vacancy:EFFECTIVE GROSS INCOME:1.8%64435,116OPERATING EXPENSES:MaintenanceRepairs & Maintenance 1,834/unit per Allen, Brooks & MinorSnow/Grounds 369/unit per Allen, Brooks & MinorRubbishassume 50/mo.UtilitiesElectricper ChamplainWater/Sewerper ChamplainGasper ChamplainManagementManagement Fees5.0%Legal/Accounting 85/unit per Allen, Brooks & MinorGeneralProperty Taxesper CityInsuranceper ChamplainReplacement Reserve2.0%Other/MiscTOTAL OPERATING EXPENSES:NET OPERATING INCOME (NOI):Capitalized StabilizedYr 1CAPITALIZED VALUE ANALYSISNet Operating IncomeCapitalization Rate3,00050060018,3396.2%Per Allen, Brooks & Minor295,793DISCLAIMER NOTICE: All financial projections and other information furnished herein are provided for general referencepurposes only. These projections and other information have been based upon various assumptions relating to thegeneral economy, competition and other factors beyond White Burke Real Estate Advisors, Inc.'s (W B's)reasonable control, and therefore these are subject to material variation. Furthermore, neither W B nor any of its staff is actingas an attorney, accountant or financial planner and therefore no opinion is given or implied as to the legal sufficiency, taximplications or financial prudence of any investment or other financial activity. W B strongly advises consulting withan attorney, accountant and/or other professional advisor(s) prior to making any material financial decisions. There is noguarantee that past performance is any indication of future performance. Future value or income is not guaranteed.Neither W B, nor its stockholder(s), representatives, or employees make any representation or warranty, expressedor implied, as to the accuracy or completeness of this projection, nor of any other information or contents herein.Page 1 of 1

8 Browns Court - Champlain CollegeBurlington, VTDate:Estimated by: HP Cummings Construction Co.Revision1/8/20200Attn: Mike HulbertDescriptionQtyUnitLabor UnitLabor55momo 2,300.00 1,200.00 11,500 6,000 0.00 0.00 0 0 11,500 6,0005555momomomo 35.00 50.00 0.00 100.00 175 250 0 500 50.00 25.00 50.00 0.00 250 125 500 0 425 375 500 500 250.00 250 1,125 500 19,800 0 0 0 0 30,000 0 30,000 0 36,000 200 1,000 0 37,200 0 36,000 1,200 2,500 0 39,700 0 1,000 16,000 22,000 27,300 0 66,300 0 1,500 26,000 22,500 27,300 0 77,300 0 7,000 2,000 0 9,000 0 16,000 6,500 0 22,500 0 2,500 2,000 0 4,500 0 3,750 3,000 0 6,750 0 0 0 1,500 6,000 0 0 0 3,000 0 0 0 7,600 0 0 0 0 0 0 0 0 4,500 11,000 0 0 0 7,500 0 0 0 19,600 0 0 0 2,000 001-000-01 General & Special Conditions01-012-01 Field SupervisionProject Manager (50%)Superintendent (50%)01-018-01 Safety ProgramFirst aidSafetyProtective EquipmentInspections/Safety Meetings01-335-01 Protect and Repair GroundsTemporary SignageItem Total02-100-00 Demolition & Alterations02100 Building DemolitionSubcontract Furnish & InstallDemo Interior1ls 250.00 250 18,6751ls 30,000.00Item Total02-200-00 Sitework02200 EarthworkSubcontract Furnish & InstallExcavate,shore & remove for new foundationRegrade at Building PerimeterReseed and Mulch Yard 30,000 0 30,000111lslsls 0.00 1,000.00 1,500.00Item Total03-300-00 Concrete03300 ConcreteSubcontract Furnish & InstallConcrete Sidewalk to BulkheadStructural Foundation Shoring and RepairsShore up BuildingNew Foundation11139lslslscy 500.00 10,000.00 500.00Item Total06-100-00 Rough Carpentry06100 Rough CarpentrySubcontract Furnish & InstallRoof Framing RepairsFoundation Sill Repaits11lsls 9,000.00 4,500.00Item Total06-200-00 Finish Carpentry & Millwork06200 Finish CarpentrySubcontract Furnish & Install - Incl in Div 6Cabinets and VanitiesCountertops12eaea 1,250.00 500.00Item Total07-000-00 Thermal & Moisture Control07200 InsulationSubcontract Furnish & InstallAcoustical InsulationSpray Foam Insulation at Exterior11lsls 3,000.00 5,000.0007320 SidingSubcontract Furnish & InstallReplace Siding1ls 4,500.0007540 RoofingSubcontract Furnish & InstallRepair Slate Roof1ls 12,000.0007600 Caulking SealantsSubcontract Furnish & InstallMisc. Sealants1ls 2,000.00 0 0 1,000 1,500 0 2,500 0 500 10,000 500 0 0 11,000 9,000 4,500 0 13,500 0 1,250 1,000 0 2,250 0 0 0 3,000 5,000 0 0 0 4,500 0 0 0 12,000 0 0 0 2,000 0Material Unit 36,000.00 200.00 1,000.00 1,000.00 16,000.00 22,000.00 700.00 7,000.00 2,000.00 2,500.00 1,000.00 1,500.00 6,000.00 3,000.00 7,600.00MaterialTotalTotal

Item Total08-000-00 Doors, Windows, & Glass08300 Wood Doors and FramesSubcontract Furnish & InstallInterior Doors and FramesExterior Doors and Frames08710 Finish Hardware - Incl in Div 6Subcontract Furnish & InstallDoor Hardware08800 GlazingSubcontract Furnish & InstallWindow Replacement 26,500103eaea 100.00 100.0013ea 50.0026ea 500.00Item Total09-000-00 Finishes09200 Gypsum Wallboard Assemblies - Incl in Div 6Subcontract Furnish & InstallNew Gypsum on Walls5500New Gypsum on Ceilings1500Taping700009510 FlooringSubcontract Furnish & InstallNew Wood FlooringVinyl Flooring09900 Painting & Wall Cover - Incl in Div 6Subcontract Furnish & Installsfsfsf 1.20 1.50 0.5011 8,900.00 2,300.001 6,200.00Item Total10-000-00 Specialties10100 SpecialtiesSubcontract Furnish & InstallBathroom Specialties2 150.00Item Total11-000-00 Equipment11310 AppliancesSubcontract Furnish & InstallNew Kitchen Appliances4 200.00Item Total15-100-00 Mechanical15100 Plumbing HVACSubcontract Furnish & InstallReplace DuctworkReplace PipingReplace Shower Surrounds111lslsls 5,000.00 6,000.00 3,000.00Item Total16-100-00 Electrical16100 ElectricalSubcontract Furnish & Install 0 1,000 300 0 0 650 0 0 13,000 0 14,950 0 0 6,600 2,250 3,500 0 0 0 8,900 2,300 0 6,200 0 29,750 0 300 0 300 0 800 0 800 0 5,000 6,000 3,000 0 0 14,000 18,100 44,600 0 1,500 600 0 0 650 0 0 19,500 0 22,250 0 2,500 900 0 0 1,300 0 0 32,500 0 37,200 0 0 5,500 1,500 2,800 0 0 0 0 0 0 0 0 9,800 0 0 12,100 3,750 6,300 0 0 0 8,900 2,300 0 6,200 0 39,550 0 300 0 300 0 600 0 600 0 2,000 0 2,000 0 2,800 0 2,800 0 4,000 5,000 1,000 0 0 10,000 0 9,000 11,000 4,000 0 0 24,000 0 0 0 14,000 0 14,000 0 180,575 358,800EstimatingContingency8.00% 28,704 150.00 200.00 50.00 750.00 1.00 1.00 0.40 150.00 500.00 4,000.00 5,000.00 1,000.00 14,000 0 14,000Item TotalTotals 178,225Sub TotalCM FeeESTIMATE CLARIFICATIONS- Roof repairs assumed to be relatively simple, and not require framing of the entire roof framing- Finishes to match that of originally approved finishes for the building 387,5045.00% 19,375Total Budget 406,879

8 Browns Court - Champlain College Burlington, VT Date: 1/8/2020 Estimated by: HP Cummings Construction Co. Revision 0 Attn: Mike Hulbert Description Qty Unit Labor Unit Labor Material Unit Material Total Total 01-000-01 General & Special Conditions 01-012-01 Field Supervision 01-018-01 Safety Program First aid 5 mo 35.00 175 50.00 250 425