The church owns One Half of a City block plus the property where the Don Bosco center is located.

It seem to me that there is more then enough property to build the 88 Unit apartment complex without demolishing the Church.

Re: Our Lady of Loreto
2356 Atlantic Avenue
(Block 1436, Lots 18,19,20,21,44,32,31,28)
(Block 1437, Lot 64)
Brooklyn, NY 11233

Dear Ms. Albrecht:
Pursuant to your request, Grubb & Ellis Valuation and Advisory Group (Grubb & Ellis) has
prepared a complete self-contained appraisal of the above referenced property.
The purpose of this assignment is to provide opinions of value of the subject property, under
several valuation scenarios. In accordance with your request, we have provided the following:

1) an opinion of the current market value of the fee simple interest of the subject property “as if vacant” and available for its development to its highest and best use. This valuation applies to all properties that are the subject of this assignment. This site includes the totality of the R6 zoned portion of the subject property, as well as the single site zoned M1-2.

2) an opinion of the current market value of portion of the subject property, as if vacant with the existing church left intact, and available to its highest and best use and considering any air rights that may be transferred from the existing church. The existing church is located on Block 1436, Lot 32. This scenario does NOT include the portion of the subject property that is zoned M1-2, or Block 1337, Lot 64.

3) an opinion of the value of the subject property with the existing church in place, via the land residual approach assuming redevelopment of a cooperative apartment building participating in the HDC-sponsored Affordable Cooperative Housing Program. The existing church is located on Block 1436, Lot 32. This scenario does NOT include Block 1337, Lot 64.Grubb & Ellis New York, Inc. 1177 Avenue of the Americas, New York, NY 10036, Tel., 212-759-9700, Fax.: 212-326-4848

4) an opinion of the value of the subject property, as if vacant, assuming it is improved with a
cooperative apartment building participating in the HDC-sponsored Affordable Cooperative
Housing Program. This scenario does NOT include Block 1337, Lot 64.
It should be noted that for those scenarios that assume the existing church will be left in tact, we have not valued the church itself. Our value conclusions represent the value of the development area excluding the existing church.

The following table summarizes the various parcels that are the subject of this assignment:
SUMMARY OF SUBJECT SITES
Address Block/Lot Site Size (Sq. Ft.) Max AGBA

Current Improvements Existing AGBA
Underbuilt, SF Frontage Depth
Lots Zoned R6 - 2.43 FAR
2354 Atlantic Ave 1436/18 1,917 4,658 Vacant Lot 0 4,658 19'-2" 100'
2356 Atlantic Ave 1436/19 1,925 4,678 Vacant Lot 0 4,678 19'-3" 100'
2358 Atlantic Ave 1436/20 1,925 4,678 Vacant Lot 0 4,678 19'-3" 100'
2360 Atlantic Ave 1436/21 1,925 4,678 Vacant Lot 0 4,678 19'-3" 100'

2355 Pacific St. 1436/44 2,500 6,075 Vacant Lot 0 6,075 25' 100'
126 Sackman St. 1436/32 17,500 42,525 Church 12,000 30,525 70' 100'
124 Sackman St. 1436/31 2,700 6,561 Rectory 3,750 2,811 30' 90'
2372 Atlantic Ave 1436/28 6,911 16,794 Convent 10,879 5,915 69'-1" 100'

Totals: 37,303 90,646 26,629 64,017
Lot Zoned M1-2 2.0 FAR
2385 Pacific St. 1437/64 5,000 10,000 Community Ctr 5,000 5,000 50' 100'

In providing an opinion for the value of the subject property in accordance with the previously
described requirements, only the Sales Comparison Approach and Income Capitalization
Approach were utilized. Elements germane to the Cost Approach were used in our Development Approach analyses.

From our investigation and analysis, it is our opinion that the market value of the fee simple
estate of the portion of the subject property zoned R6, assuming it is vacant and can be improved to its highest and best use, as of September 25, 2007, is:

Grubb & Ellis New York, Inc.
1177 Avenue of the Americas, New York, NY 10036, Tel., 212-759-9700, Fax.: 212-326-4848
From our investigation and analysis, it is our opinion that the market value of the fee simple
estate of the portion of the subject property zoned R6, excluding the existing church but not the transferable development rights of that church, assuming it is mostly vacant with the existing church left intact and can be improved to its highest and best use, as of September 25, 2007, is:

From our investigation and analysis, it is our opinion that the market value of the fee simple
estate of the portion of the subject property zoned M1-2, assuming it is vacant and can be
improved to its highest and best use, as of September 25, 2007, is:

From our investigation and analysis, it is our opinion that the value in use of the fee simple estate of the subject property site, assuming it is mostly vacant with the existing church left intact, and can be developed as a cooperative apartment building, participating in the HDC’s Affordable Cooperative Housing Program, as of September 25, 2007, is:

Grubb & Ellis New York, Inc.
1177 Avenue of the Americas, New York, NY 10036, Tel., 212-759-9700, Fax.: 212-326-4848
This appraisal is prepared in conformity with, and is subject to the Code of Professional Ethics and Standards of Professional Appraisal Practice, as set forth by the Appraisal Institute. In addition, the appraisal is made in conformance with the Uniform Standards of Professional Practice (USPAP).

This appraisal report complies with the reporting requirements set forth under the Standards Rule 2- 2 (a) of the Uniform Standards of Professional Appraisal Practice for a Self-contained Appraisal Report. This report is made subject to the assumptions and limiting conditions and certificate appearing in the Addenda of the appraisal report and does not address any environmental factors that may be present on the property.

An exterior inspection of the subject property was performed by R. Benjamin Zapp on
September 25, 2007. This letter is not an appraisal in and of itself and is invalid if detached from the complete appraisal report, which contains the text, exhibits, and addenda.
Respectfully submitted,