600,000 SF Class A building located on an 90-acre site. The lease is guaranteed by Amazon.com, Inc., the tenant’s parent company, and one of the largest public companies (NASDAQ: AMZN) in the United States with a market capitalization in excess of $1.56 trillion as of January 15, 2020. Amazon.com, Inc. is rated AA- by S&P and A3 by Moody’s. The lease has a remaining term of 15 years and includes 1.75% annual rent increase. The Property was built for Amazon in 2020 and operates as a state-of-the-art IXD distribution facility and one of only 14 IXD facilities in Amazon’s U.S. network.

The city of Greenfield is located about 25 miles east of Indianapolis. The Property lies northeast of downtown, just north of Interstate 70. The area immediately surrounding the Property is primarily made up of undeveloped land. Despite the current and future impact of the pandemic, the appraiser has a favorable outlook on the local market due to its strong ties to the University of Indianapolis.

The MSA is diversifying, creating a stronger economic base that is no longer so heavily dependent on manufacturing. Overall, the MSA appears to be poised for continued growth beyond the uncertainty brought on by the ongoing COVID-19 pandemic.

According to REIS.com, the 302,000-unit Phoenix MSA apartment market is robust and relatively healthy. The vacancy rate as of August 2020 was 4.9%, up 40 basis points over the level found one year ago. During August, asking rental rates built on the 0.1% decrease from the month prior, dropping another 0.1% in August to a market wide average rental rate of $1,144/unit per month. In total, the market has experienced three consecutive months of decline amounting to a 0.8%, in aggregate. The decline comes after a period of incredible growth, however. Since 2010, the Phoenix market has recorded annual rental rate growth of 4.3%. The five-year forecast calls for an increase in the vacancy rate to increase to 6.9% in 2021 before falling back to 6.0% by 2022 and beyond. The average rental rate is forecast to decrease for the balance of 2020 before stabilizing in 2021 and increasing in 2022 and beyond. The A Project is furthermore located within the Glendale South submarket. With 11,350 units, or 3.76% of the total metro inventory, the Glendale submarket is the one of the smallest in the Phoenix MSA. In the 10-year period beginning with Q32010, new additions to the submarket have totaled just 416 units, amounting to an inventory growth of .4% per year. Over the same 10- year period, the entire Phoenix MSA inventory growth rate has been 1.5%. As of the second quarter of 2020, the vacancy rate was 3.1%, down 40 basis points from the level found one year ago. The average rental rate was $913/unit per month. Over the coming years, REIS has forecast the submarket vacancy rate to increase, however, the vacancy rate is not forecast to climb above 5.0%; a very healthy level. Due to the low vacancy rate, rental rates are forecast to see a brief interruption before increasing in 2021 and beyond. When broken down by unit type, one-bedroom units had an average rental rate of $815/unit per month ($1.28/SF), two-bedroom units had an average rental rate of $1,014/unit per month ($1.10/SF), and three-bedroom units had an average rental rate of $1,224/unit per month ($1.06/SF). According to REIS.com, the Boston MSA contains 238,500 units. As of August 2020, the vacancy rate was 5.5%, up just 10 basis points over the fourth quarter, 2019 level, however, up 60 basis points from one year prior. REIS has forecast that 4,222 units of new market rate apartment inventory will be introduced into the Boston MSA prior to year-end and net absorption will be 2,072 units. The forecast is for the vacancy rate to increase to 6.5% by year-end 2020 with a slow decline to back to 4.9% by 2024. The average asking rental rate was $2,463 as of second quarter 2020. During August 2020, rental rates declined by 0.1% to $2,442/unit per month. Since the third quarter of 2010, the Boston MSA has recorded average rental rate gains of 3.7%. The M Project is furthermore located within the West/Northwest submarket. The submarket contains 23,233 units or approximately 9.7% of the total Boston MSA inventory. Over the past 10 years, the West/Northwest submarket has gained approximately 3,969 units per year amounting to inventory growth of 1.9%, the same as the overall market growth. The conditions within the submarket are similar to the overall market, with a vacancy rate of 5.7% as of August 2020. The average rental rate within the submarket is $2,206/unit per month, down approximately $50/unit per month from conditions found during the first quarter of 2020. The forecast for the submarket is for the vacancy rate to increase to 6.7% by 2021 before declining again in 2023 and beyond. Rental rates are not forecast to fall beyond the decline which has already occurred and are forecast to resume a pattern of growth in 2021. When broken down by unit type, one-bedroom units had an average rental rate of $1,987/unit per month ($2.50/SF), two-bedroom units had an average rental rate of $2,356/unit per month ($2.18/SF), and three-bedroom units had an average rental rate of $2,955/unit per month ($2.26/SF). According to REIS.com, the NY Project is located within the Long Island multifamily market, which contains 101,400 units. As of August 2020, the vacancy rate was 4.5%, up 10 basis points over the level found at year-end 2019 and up 90 basis points over the level found one year ago. Looking forward, however, REIS has not forecast the vacancy rate to rise above 5.0% over the extended forecast period. The average asking rental rate was $2,126 as of August 2020, nearly level over the past 12 months. During the 10 years beginning third quarter 2010, the market has recorded an average rental rate gain of 3.5%. The NY Project is furthermore located within the Nassau County submarket. The submarket contains 55,771 units or approximately 55% of the overall Long Island apartment market inventory. Over the past 10 years, the Nassau County submarket has gained approximately 2,496 units per year amounting to inventory growth of 0.5%, just slightly above the Long Island growth rate of .4%. The conditions within the submarket are similar to the overall market, with a vacancy rate of 4.0% as of August 2020. Historically, the market maintains a very low vacancy rate and has not increased above 5.0% in REIS data looking back 10 years. As a result of the pandemic, REIS has forecasted the vacancy rate to increase slightly to 5.6% in 2021 before falling back below 5.0% by 2024. Rental rates are not forecast to fall beyond the decline which has already occurred and are forecast to resume a pattern of growth in 2021 and beyond. When broken down by unit type, one-bedroom units had an average rental rate of $2,111/unit per month ($2.72/SF), two-bedroom units had an average rental rate of $2,836/unit per month ($2.62/SF), and three- bedroom units had an average rental rate of $3,558/unit per month ($2.59/SF). According to REIS.com, the W Project is located within the Tacoma multifamily market, which contains 39,980 units in seven separate submarkets. As of August 2020, the vacancy rate was 3.3%, up 10 basis points over the level found at year-end 2019. The forecasted addition of 739 new units in 2021 is forecast to increase the vacancy rate to 5.7%, before falling below 5.0% in 2022 and beyond. The Tacoma market vacancy rate has been below 5.0% since 2013. The average asking rental rate was $1,162/unit per month as of August 2020. Rental rates have gained 2.6% over the past twelve months and during the 10 years beginning third quarter 2010, the market has recorded an average rental rate gain of 4.5%. The W Project is furthermore located within the Lakewood submarket. The submarket contains 5,510 units or approximately 13.8% of the Tacoma apartment market inventory. There have been no new additions to the submarket in the past ten years. Conditions within the submarket are tight, with a vacancy rate of 2.6%, up 40 basis points over the year-end 2019 level. As a result of the pandemic, REIS has forecasted the vacancy rate to increase to 6.8% by year-end 2020 and remain over 6.0% through 2024. Given the historically low vacancy rate, and lack of new inventory, we feel the vacancy rate forecast is extremely aggressive.

The property is internally managed by the sponsor.