Investment Overview

Property Highlights: 176-Room Midscale Hotel Directly connected to Dakota Square Mall Operates under a land lease with CBL Properties Financial Highlights: Annual NOI: Approximately $1.2 million Consistently generates around $1 million annually at bottom line Approximately $150,000 annually flows directly to CBL via land lease payments Strategic Highlights: Expansion Potential: Opportunity to expand the hotel’s convention and hospitality space by 5,000-10,000 sq ft to attract larger conventions Potential city incentives available for convention space expansion Expansion could include mall spaces currently occupied by Maurices and Famous Footwear (~12,328 sq ft) Value-Add Opportunity: Significant renovation potential could offer substantial depreciation benefits (Section 179 accelerated depreciation possibly exceeding $8 million in year one) Land Lease Advantage: Landowner uniquely positioned to capitalize on existing lease arrangement or reposition the asset as fee simple, enhancing overall asset value by removing lease arbitrage. Fixed Rent: Clearly defined periodic payments, subject to CPI adjustments Percentage Rent: 2% of Gross Sales exceeding a base ($3 million), CPI-adjusted Market Highlights: Strong Macroeconomic Environment: Positive indicators in North Dakota driven by rebounding hotel demand and stable oil industry outlook Tilt Studio addition at the mall increases foot traffic and retail appeal Average Household Income in Minot: Approximately $94,000 Operational Highlights: Existing Third-party Management: Professional management currently in place; potential to retain or transition management to create additional operational synergies