Exhibit_A_-_Appraisal.pdf

Appraisal Report

San Mateo County Law Library 710 Hamilton Street

Redwood City, San Mateo County, California 94063

Report Date: July 22, 2026

FOR:

Michele King County of San Mateo

500 County Center Redwood City, CA 94063

Valbridge Property Advisors |

Northern California

1530 The Alameda, Suite 100 San Jose, CA 95126

408.279.1520 phone Valbridge File Number:

408.279.3428 fax CA02-26-0346-001 valbridge.com

© 2026 VALBRIDGE PROPERTY ADVISORS | NORTHERN CALIFORNIA

1530 The Alameda, Suite 100

San Jose, CA 95126

408.279.1520 phone

408.279.3428 fax valbridge.com

July 22, 2026

Maria Aji, PhD

408.279.1520 ext. 7120 maji@valbridge.com

County of San Mateo

500 County Center

Redwood City, CA 94063

RE: Appraisal Report

San Mateo County Law Library

710 Hamilton Street

Redwood City, San Mateo County, California 94063

Dear Ms. King:

In accordance with your request, an appraisal of the above-referenced property was completed. This appraisal report sets forth the pertinent data gathered, the techniques employed, and the reasoning leading to the value opinions. This letter of transmittal does not constitute an appraisal report and the rationale behind the value opinion(s) reported cannot be adequately understood without the accompanying appraisal report.

The subject property, as referenced above, is located at 710 Hamilton Street, Redwood City, CA 94063 and is further identified as Assessor Parcel Number (APN) 052-364-110. The subject site is a 0.47-acre or 20,500-square-foot parcel. The site is improved with a two-story single-tenant civic building originally constructed circa 1960. The building is of concrete block construction with wood frames and contains 12,764 gross square feet of building area. The improvements are owned by the County of San

Mateo.

The first floor encompasses the full building footprint and is occupied by a public law library, which includes open library space, private offices, and one restroom. It features high ceilings throughout, owing to the partial nature of the upper level. The second floor is built as mezzanine space over approximately one-third of the first-floor footprint and the space overlooks onto the ground floor space. The second-floor space consists of enclosed office areas connected via a hallway and is occupied by the County Assessor's Office with the rest of the space used as library storage and office area. There are 33 parking spaces on site for a parking ratio of 2.59 spaces per 1,000 square feet of building area.

County of San Mateo

© 2026 VALBRIDGE PROPERTY ADVISORS | NORTHERN CALIFORNIA

The analyses, opinions, and conclusions were developed, and this report was prepared in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) of the Appraisal Foundation;

the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute; and the requirements of our client.

The client in this assignment is the County of San Mateo and the intended user of this report is the

County of San Mateo, Real Property Services Division and no others. The intended use is to assist the client in establishing the value for potential disposition of the subject property. The value opinions reported herein are subject to the definitions, assumptions, limiting conditions, and certifications contained in this report.

The findings and conclusions are further contingent upon the following extraordinary assumptions and/or hypothetical conditions, the use of which might have affected the assignment results:

Extraordinary Assumptions:

• None

Hypothetical Conditions:

• None

The value conclusions are based on the analysis in the following report and presented in the following table:

Respectfully submitted, Valbridge Property Advisors | Northern California

Maria Aji, Ph.D.

Director

California Certified License #AG027130

Value Conclusion

Component As Is

Value Type Market Value

Real Property Interest Fee Simple

Effective Date of Value July 6, 2026

Value Conclusion $5,330,000

PSF of Site Area $260 PSF

PSF of Bldg Area $417.58 PSF

SAN MATEO COUNTY LAW LIBRARY

TABLE OF CONTENTS

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Table of Contents

Cover Page

Letter of Transmittal

Table of Contents

Summary of Salient Facts

Aerial and Front Views

Location Map

Introduction

Scope of Work

Regional and Market Area Analysis

City and Neighborhood Analysis

Site Description

Improvements Description

Subject Photographs (Dated July 6th, 2026)

Assessment and Tax Data

Market Analysis

Highest and Best Use Analysis

Land Valuation- Sales Comparison Approach

Reconciliation

Exposure Time and Marketing Period

General Assumptions and Limiting Conditions

Certification – Maria Aji, PhD

Addenda

Additional Subject Photographs (Dated July 6th, 2026)

Glossary

Qualifications

Valbridge Property Advisors Information / Office Locations

SUMMARY OF SALIENT FACTS

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Summary of Salient Facts

Property Identification

Property Name San Mateo County Law Library

Property Address 710 Hamilton Street

Redwood City, San Mateo County, California 94063

Latitude & Longitude 37.487286, -122.230548

Census Tract 6102.02

Tax Parcel Number 052-364-110

Property Owner County of San Mateo, a political subdivision of the State of

California

Site

Zoning Planned Community Downtown Precise Plan (P)

FEMA Flood Map No. 06081C0301F

Flood Zone X

Gross Land Area 0.471 acres

Usable Land Area 0.471 acres

Existing Improvements

Property Use Public Library

Occupancy 100% Government

Gross Building Area (GBA) 12,764 sf

Net Rentable Area (NRA) 12,764 sf

Number of Units 1

Number of Buildings 1

Number of Stories 2

Year Built 1960

Condition Average

Construction Class C - Concrete Block

Construction Quality Average

Surface Parking 33 spaces

Valuation Opinions

Highest & Best Use - As Vacant Mixed-use, including commercial and multifamily development.

Highest & Best Use - As Improved Future Redevelopment

Reasonable Exposure Time Up to six months

Reasonable Marketing Time Up to six months

SUMMARY OF SALIENT FACTS

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Value Conclusion

Component As Is

Value Type Market Value

Real Property Interest Fee Simple

Effective Date of Value July 6, 2026

Value Conclusion $5,330,000

PSF of Site Area $260 PSF

PSF of Bldg Area $417.58 PSF

AERIAL AND FRONT VIEWS

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Aerial and Front Views

AERIAL VIEW

FRONT VIEW (DATED JULY 6TH, 2026)

LOCATION MAP

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Location Map

INTRODUCTION

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Introduction

Client and Intended Users of the Appraisal The client in this assignment is Michele King with the County of San Mateo and the intended user of this report is the County of San Mateo, Real Property Services Division. Under no circumstances shall any of the following parties be entitled to use or rely on the appraisal or this appraisal report:

i. The borrower(s) on any loans or financing relating to or secured by the subject property,

ii. Any guarantor(s) of such loans or financing; or

iii. Principals, shareholders, investors, members or partners in such borrower(s) or guarantors.

Intended Use of the Appraisal The intended use of this report is to assist the client in establishing the value for a potential disposition of the subject property.

Real Estate Identification The subject property is located at 710 Hamilton Street, Redwood City, San Mateo County, California

94063. The property is further identified by Assessor Parcel Number (APN) 052-364-110.

Legal Description A legal description of the subject property was provided in the Preliminary Title Report for the subject prepared by the Old Republic Title Company and dated February 11, 2014. The Preliminary Title

Reports has been reproduced in the Addenda.

Use of Real Estate as of the Effective Date of Value As of the effective date of value, the subject was a public library and office property.

Use of Real Estate as Reflected in this Appraisal The current opinion of value for the subject property reflects use as redevelopment land.

Ownership of the Property According to Preliminary Title Report, title to the subject is vested in County of San Mateo, a political subdivision of the State of California.

History of the Property Ownership of the property has not changed within the past three years.

Type and Definition of Value The purpose of this appraisal is to develop an opinion of the market value of the subject property.

“Market Value,” as used in this appraisal, is defined as “The most probable price, as of a specified date, in cash, or in terms equivalent to cash, or in other precisely revealed terms, for which the specified property rights should sell after reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-

INTRODUCTION

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interest, and assuming that neither is under undue duress.”1 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:

• Buyer and seller are typically motivated.

• Both parties are well informed or well advised, each acting in what they consider their own best interests;

• A reasonable time is allowed for exposure in the open market;

• Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and

• The price represents the normal consideration for the property sold unaffected by special or creative financing or sale concessions granted by anyone associated with the sale.”

The “as is” value is the value of the property in its present condition under market conditions prevalent on the date of the appraisal. Please refer to the Glossary in the Addenda section for additional definitions of terms used in this report.

Valuation Scenarios, Property Rights Appraised, and Effective Dates of Value Opinions of value for the subject were developed under the following valuation scenarios:

Date of Report The date of this report is July 22, 2026.

List of Items Requested but Not Provided

• None

Assumptions and Conditions of the Appraisal This appraisal assignment and the opinions reported herein are subject to the General Assumptions and Limiting Conditions contained in the report and the following extraordinary assumptions and/or hypothetical conditions, the use of which might have affected the assignment results.

Extraordinary Assumptions

• None

Hypothetical Conditions

• None

1 THE DICTIONARY OF REAL ESTATE APPRAISAL, EIGHTH EDITION, (APPRAISAL INSTITUTE, 2026), 105

Valuation Scenario Effective Date of Value

As Is Market Value of the Fee Simple Interest July 6, 2026

SCOPE OF WORK

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Scope of Work

The elements addressed in the Scope of Work are (1) the extent to which the subject is identified, (2) the extent to which the property is inspected, (3) the type and extent of data researched, (4) the type and extent of analysis applied, (5) the type of appraisal report prepared, and (6) the inclusion or exclusion of items of non-realty in the development of the value opinion. These items are discussed below.

Extent to Which the Property Was Identified The three components of the property identification are summarized as follows:

• Legal Characteristics - The subject was legally identified via Assessor Parcel Number (APN), plat map, site visit, Google Earth, public records, and client-provided information.

• Economic Characteristics - The subject’s economic characteristics were identified via information provided by our client, market data, and discussion with active market participants.

• Physical Characteristics - The subject’s physical characteristics were identified via an appraisal inspection consisting of interior and exterior observations completed by Maria Aji and Haidee

Xu of Valbridge Property Advisors..

Extent to Which the Property Was Inspected An appraisal inspection of the property was completed on July 6, 2026. The improvements were not measured during the course of the inspection.

Type and Extent of Data Researched The following data was researched and analyzed: (1) market area data, (2) property-specific market data, (3) zoning and land-use data, and (4) current data on comparable listings and transactions.

Professionals familiar with the subject market/property type were also interviewed.

This report was prepared with the assistance of full-time trainee/assistant Haidee Xu, who performed and assisted in many tasks of the report, including research and data collection, assistance in writing a market analysis, city and neighborhood analysis, and site and improvements description. The appraiser supervised and verified these steps.

Type and Extent of Analysis Applied (Valuation Methodology) Surrounding land use trends, the condition of any improvements, demand for the subject property, and relevant legal limitations were observed in the process of concluding a highest and best use for the property. The subject was then valued based on the highest and best use conclusion.

Appraisers develop an opinion of property value with specific appraisal procedures that reflect three distinct methods of data analysis: the cost approach, sales comparison approach, and income capitalization approach. One or more of these approaches are used in all estimations of value.

• Cost Approach - In the cost approach, the value indication reflects the sum of current depreciated replacement or reproduction cost, land value, and an appropriate entrepreneurial incentive or profit.

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• Sales Comparison Approach - In the sales comparison approach, value is indicated by recent sales and/or listings of comparable properties in the market, with the appraiser analyzing the impact of material differences in both economic and physical elements between the subject and the comparables.

• Income Capitalization Approach - In the income capitalization approach, value is indicated by the capitalization of anticipated future income. There are two types of capitalization: direct capitalization and yield capitalization, more commonly known as discounted cash flow (DCF) analysis.

In addition, there are four primary methods available to develop a land value estimate: (1) sales comparison, (2) land residual method, (3) ground rent capitalization, and (4) subdivision development method (discounted cash flow). While other methods, such as extraction and allocation, are applicable under limited conditions, one or more of these approaches are used in most circumstances to derive an indication of land value.

• Sales Comparison Approach - In the sales comparison approach, value is indicated by recent sales and/or listings of comparable properties in the market, with the appraiser analyzing the impact of material differences in both economic and physical elements between the subject and the comparables.

• Direct Capitalization: Land Residual Method - The land residual methodology involves estimating the residual net income to the land by deducting from total potential income the portion attributable to the improvements, assuming development of the site at its highest and best use. The residual income is capitalized at an appropriate rate, resulting in an indication of land value.

• Direct Capitalization: Ground Rent Capitalization – A market derived capitalization rate is applied to the net income resulting from a ground lease. This can represent the leased fee or fee simple interest, depending on whether the income potential is reflective of a lease in place or market rental rates.

• Yield Capitalization: Subdivision Development Method – Also known as discounted cash flow analysis (DCF), the methodology is most appropriate for land having multiple lot development in the near term as the highest and best use. The current site value is represented by discounting the anticipated cash flow to a present value, taking into consideration all necessary costs of development, maintenance, administration, and sales throughout the absorption period.

All of these approaches to value were considered. The availability of data and applicability of each approach to value within the context of the characteristics of the property, along with the needs and requirements of the client, were assessed. Based on this assessment, the sales comparison approach was developed. The specific methods and analysis of each approach are further discussed in the respective valuation sections.

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Appraisal Conformity and Report Type The analyses, opinions, and conclusions were developed and this report was prepared in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) of the Appraisal Foundation;

the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute; and the requirements of our client. This is an Appraisal Report as defined by the Uniform Standards of

Professional Appraisal Practice under Standards Rule 2-2a.

Personal Property/FF&E All items of non-realty are excluded from this analysis. The opinion of market value developed herein is reflective of real estate only.

REGIONAL AND MARKET AREA ANALYSIS

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Regional and Market Area Analysis

REGIONAL MAP

Overview The property is located in the San Francisco Bay Region, an area which is comprised of the nine counties bordering the San Francisco Bay. According to the State of California Department of Finance, the area had a combined population of approximately 7.66 million as of January 1, 2025. The

Department of Finance characterizes the San Francisco Bay Area by a moderate climate, diversified economy and one of the highest standards of living in the United States.

San Mateo County is just south of San Francisco in the western portion of the greater region.

Geographically, the county forms a peninsula, which leads from San Francisco southward to Santa Clara

County, defining the westerly boundary of the Bay Area. The County of San Mateo, as previously mentioned, is often referred to as “The Peninsula.”

Growth along the Peninsula is constrained by its geography, including watershed and mountains. Most development in San Mateo County is therefore located along the eastern side of the Peninsula, fronting

San Francisco Bay. The central portion of the Peninsula mainly consists of the coastal mountain range, associated watershed, and fish and game refuge. The westerly portion fronts the Pacific Ocean and is agriculturally and recreationally oriented. Development to the west has been limited by transportation availability, weather, environmental concerns, and water and sewer constraints.

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Population San Mateo County is the Bay Area’s fourth largest county behind Santa Clara, Alameda, Contra Costa, and San Francisco counties. According to the State of California Department of Finance, as of

January 1, 2025, the population in the county was 748,337, which is a 0.07% increase from the previous year.

According to ESRI Business projections, presented below, the county’s population is expected to increase annually by 0.27% between 2025 and 2030, while Redwood City will increase approximately

0.62% annually over the same period.

Transportation Transportation access has been and will continue to be the key to the attractiveness of San Mateo

County. Interstate 280 runs generally north/south along the ridge of the coastal mountains through the county and is known as one of the most beautiful highways in California. Highway 101 traverses the flatlands north/south near the Bay.

State Highways 84 and 92 are major east/west routes connecting the coastal communities in San

Gregorio and Half Moon Bay with the north/south highway networks. Both these routes continue over bridges across the Bay into the East Bay. Dumbarton Bridge (Highway 84) connects Palo Alto with

Fremont. Highway 92 links San Mateo and Foster City with Hayward.

Highway 1 is a north/south route which serves the coastal communities along the Pacific Ocean. State

Highway 82 is synonymous with El Camino Real, the original north/south route in the state. El Camino

Real is a major arterial, which defines most of the commercial districts in the county and generally acts as a geographic dividing line between the residential communities to the west and the commercial and industrial services and businesses to the east, adjoining the Bay.

Air, rail, and water transportation access is also very good. San Francisco International Airport (SFO), which provides scheduled airfreight and passenger services, is located in north central San Mateo

County between Millbrae and San Bruno next to the Bay. This airport is one of the busiest in the world in terms of air passenger volume, air cargo, and scheduled arrivals and departures. As of the fiscal year

2025, the airport had maintained an upward trajectory in the number of passengers served with 54 million passengers in total. Amtrak and the Union Pacific main line run in the flatlands just east of El

Camino Real. Commuter service to San Francisco to the north and San Jose to the south is provided by Caltrain, now a division of Amtrak. Both Redwood City and San Francisco have deep-water ports.

Compound

Annual ∆

Compound

Annual ∆

Area 2020 - 2025 2025 - 2030

United States 331,449,520 335,707,897 0.26% 343,238,675 0.44%

California 39,538,223 39,812,276 0.14% 40,153,869 0.17%

San Francisco-Oakland-Fremont, CA 4,749,008 4,813,988 0.27% 4,865,628 0.21%

San Mateo County 764,442 784,729 0.53% 795,567 0.27%

Redwood City city 84,292 86,693 0.56% 89,400 0.62%

Source: ESRI (ArcGIS)

Census

Population

(2020)

Current

Population

(2025)

Projected

(2030)

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The Bay Area Rapid Transit (BART) system is a regional system of high-speed commuter trains with stations in San Francisco, San Mateo, Contra Costa, Alameda, and Santa Clara counties. San Mateo

County has six BART stations, including an extension to the San Francisco International Airport, which features a light rail system linking the terminal complex with outlying airport facilities.

In addition to BART, San Mateo County is served by the SamTrans bus system, which operates more than 70 routes throughout San Mateo County and into parts of San Francisco and Palo Alto. As of the fiscal year 2025, SamTrans buses served more than 10.7 million passengers over a 446-square-mile area, which represents a 7.9% increase from the previous year.

For a densely settled area such as San Mateo County, traffic congestion is a critical factor for the county’s economy as well as its quality of life. The Federal Reserve of St. Louis (FRED) reports that the mean commuting time for the workforce within San Mateo County peaked at 29.4 minutes in 2020. As of 2023, the mean commuting time had fallen to approximately 27.3 minutes but continued to be slightly higher compared to Santa Clara County at 27.0 minutes. To reduce gridlock, the San Mateo

County Transportation Authority teamed with other agencies to implement the San Mateo 101 Express

Lanes Project. Completed in March 2023, the project added 22 miles of designated express lanes in each direction along Highway 101, from the San Mateo County/Santa Clara County Line to I-380 in

South San Francisco.

Employment High-technology employment and a skilled workforce translate into relatively high-income levels, and

San Mateo County is one of the most affluent metropolitan regions in the nation. Silicon Valley’s economy is stable, although its narrow range of driving industries has kept recent growth very slow.

Significant employment sectors within San Mateo County include professional, scientific, and tech services; healthcare and social assistance; and retail trade. Top employers within the county include

YouTube LLC, Genentech Inc. and SRI International, the Daly City BART station and San Francisco

International Airport, Kaiser Permanente and San Mateo Medical Center, and the County of San Mateo.

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Unemployment The unemployment rate in San Mateo County is currently less than the rates of the state and nation.

The County unemployment rate was 3.1% as of June 2026 (most recent available). The State of

California was at 4.7% while the Nation was at 4.4% for the same time period.

National Economic Overview The national economy remains on a path of moderate expansion, though momentum has become uneven, entering 2026. The post-COVID recovery period was characterized by elevated labor demand and wage growth, while the Federal Reserve implemented economic policies intended to control inflation and support financial market stability.

Employment by Industry for San Mateo County - Source: ESRI (ArcGIS)

0% 5% 10% 15% 20% 25%

Agriculture/Forestry/Fishing/Hunting

Mining/Quarrying/Oil & Gas Extraction

Construction

Manufacturing

Wholesale Trade

Retail Trade

Transportation/Warehousing

Utilities

Information

Finance/Insurance

Real Estate/Rental/Leasing

Professional/Scientific/Tech Services

Management of Companies/Enterprises

Admin/Support/Waste Management Services

Educational Services

Health Care/Social Assistance

Arts/entertainment/Recreation

Accommodation/Food Services

Other Services (excl Public Administration)

Public Administration

Unemployment Rates

Area YE 2021 YE 2022 YE 2023 YE 2024 YE 2025 2026¹

United States 5.3% 3.6% 3.6% 4.0% 4.3% 4.4%

California 7.3% 4.3% 4.7% 5.3% 5.5% 4.7%

San Francisco-Redwood City-South San Francisco, CA (MD) 5.2% 2.7% 3.3% 3.8% 4.0% 3.3%

San Mateo County, CA 4.9% 2.6% 3.1% 3.7% 3.9% 3.1%

Redwood City city, CA 4.2% 2.5% 3.0% 3.5% 3.8% 3.0%

Source: www.bls.gov data not seasonally adjusted; ¹June - most recent for US, others lag by 1-2 mos.)

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U.S. real GDP contracted by 0.5% in the First Quarter of 2025 (revised), rebounded at 3.8% and 4.4% in the Second and Third Quarters, and grew 0.5% in the Fourth Quarter, yielding full-year growth of 2.1%.

According to the Bureau of Economic Analysis, real GDP grew at annualized rate of 2.0% in the First

Quarter of 2026. Growth was supported by investment (including AI data center buildout), exports, government spending, and consumer spending. Real GDP is expected to grow modestly over Q2-2026, with an estimated 2.0% growth. Real disposable income growth has been approximately flat, year-over-year, as inflation-adjusted wage gains have been largely offset by higher energy costs.

Inflation re-accelerated in March and April 2026, with headline CPI rising 3.3% and at 3.8% year-over-year, largely driven by a surge in gasoline prices following the Strait of Hormuz closure. Inflation accelerated further in May 2026, with headline CPI rising 4.2% year-over-year as energy prices continued to surge. Core CPI rose to 2.9% year-over-year in May, up from 2.8% in April. Price pressures remain most pronounced in shelter, healthcare services, and energy.

The labor market demonstrated unexpected resilience throughout the First Quarter of 2026. Nonfarm payrolls increased by 185,000 and 115,000 jobs in March and April of this year, well above expectations, and the national unemployment rate fell to 4.3%. Average hourly earnings rose 3.5% year-over-year.

Employment subsequently increased by 172,000 jobs in May 2026. The national unemployment rate has remained in a narrow range at 4.3% to 4.5% since July 2025. Average hourly earnings rose 3.4% year-over-year in May. Labor force participation rate edged down to 61.8% from 62.4% the prior year.

U.S Trade Policies

U.S. trade policy remains a source of economic uncertainty, though its near-term inflationary impact has been more subdued than initially feared as many firms had partially absorbed higher import costs, diversified supply chains, or delayed price pass-throughs to consumers.

On February 20, 2026, the U.S. Supreme Court ruled 6–3 that IEEPA (or “International Emergency

Economic Powers Act”) does not authorize the President to impose tariffs, and the administration’s reciprocal tariff framework was terminated effective February 24, 2026. A replacement Section 122 surcharge (i.e., temporary tariffs) of 15% (raised from the initial 10% rate on February 22, 2026, to the statutory maximum) on nearly all imports took effect the same day and expires by statute on July 24, 2026. Certain tariffs, such as a 50% duty on steel, aluminum, and copper imports, were unaffected by the ruling and remain in force. Trade policy uncertainty continues to weigh on business investment and supply-chain planning.

Oil Price Shock and Geopolitical Risk

The U.S.-Israeli military conflict with Iran, which began February 28, 2026, has severely disrupted global energy markets. Iran closed the Strait of Hormuz on March 2, 2026, cutting off a passage through which 20% to 25% of seaborne oil normally transits. The two nations reached a formal memorandum of understanding in mid-June to end the conflict, lift blockades of the Strait, and open a 60-day window for nuclear negotiations. Global crude oil prices peaked at approximately $138 per barrel in early April before declining significantly as markets priced in the prospective reopening; prices have since moderated to the mid-to-upper $70s per barrel range. Follow-on nuclear negotiations remain ongoing, and a breakdown in those talks could risk renewed disruption. The UAE’s departure from

OPEC, effective May 1, 2026, adds longer-term uncertainty to global oil supply dynamics.

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Retail gasoline prices rose nationally from approximately $2.98 per gallon before the military conflict began to a peak of approximately $4.62 per gallon in May 2026, before declining as ceasefire prospects firmed and a formal agreement was reached. The national average has moderated into the low-to-mid

$4.00 per gallon range in mid-June, though it remains meaningfully above pre-conflict levels. California prices have similarly eased but remain well above the national average. Oxford Economics projected that sustained disruption could add between 0.3 to 0.5 percentage points to inflation above prior forecasts; a durable Strait reopening would limit that impact over the near term.

Other Policy Changes

Tax and fiscal policy changes enacted in 2025 are expected to provide a tailwind for commercial and residential real estate in 2026. The extension and expansion of the 2017 Tax Cuts and Jobs Act, approved as part of the “One Big Beautiful Bill,” includes lower corporate tax rates and elimination of taxes on tips and overtime pay.

For real estate investors and operators, the legislation provides a permanent extension and modification of the Qualified Opportunity Zone program, a permanent 20% Qualified Business Income deduction, and full deductibility of interest expenses for commercial and multifamily loans. As these measures take effect in 2026, they are expected to improve after-tax returns and transaction feasibility, supporting investment activity. However, longer-term fiscal pressures tied to higher federal deficits could remain a consideration for interest rates and capital markets.

Immigration enforcement and federal workforce reduction initiatives have introduced labor-supply constraints in key industries, including agriculture, construction, hospitality, and healthcare. These policies may contribute to sector-specific wage pressures and limit potential output growth over the medium term.

Federal Funds Rate

The Federal Reserve cut interest rates three times in late 2025, bringing the target range to 3.50% to

3.75% at year-end. No changes to the Federal Funds Rate were made at their January, March, and April

2026 meetings – citing the energy driven inflation spike, labor market conditions, and geopolitical uncertainty.

Financial markets no longer anticipate rate cuts in 2026, as the May CPI reading of 4.2% and elevated energy prices have pushed rate-cut expectations off the table for the near term. Kevin Warsh, sworn in on May 22, 2026, assumed chairmanship of the board. At their most recent June 17 FOMC meeting, the Fed held the funds rate steady but signaled that its next move could be a rate increase, particularly if inflation remains persistently elevated. Future decisions will be driven by incoming data on inflation

(particularly the trajectory of energy prices and core PCE), labor markets, the ongoing Middle East conflict, and financial stability.

Inflation expectations have risen materially since the onset of the conflict; the University of Michigan’s one-year-ahead consumer inflation expectations have risen approximately one percentage point, and five-year expectations have approached 4 percent. Financial markets now price the Federal Funds Rate at approximately 4% by year-end, compared to a year-end expectation of approximately 3% prior to the Middle East conflict (reflecting anticipated rate cuts that never materialized).

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Commercial Real Estate (CRE) Loans and Foreclosures

Elevated interest rates continue to pressure new development and CRE transaction activity. The 10-year Treasury yield has risen approximately 60 basis points since the onset of the Iran conflict to above

4.5%, lifting borrowing costs across CRE, construction, consumer, and corporate lending alike.

The CMBS delinquency rate was at 7.08% overall in May 2026 (Trepp), with office delinquencies at

11.08% (a slight pullback from the January all-time high of 12.34% following several large loan modifications and extensions) and multifamily improving to 6.57%, a 46-basis point decline from the prior record high. Approximately $936 billion in CRE debt maturities are projected for 2026, with a further peak of approximately $1.26 trillion anticipated in 2027. The energy price shock, while moderating from its peak following the mid-June ceasefire agreement, compounds these pressures by raising operating expenses across property types and complicating underwriting assumptions.

Transaction volume has been recovering. Commercial and multi-family mortgage originations increased by 52% year-over-year during the First Quarter 2026, according to the Mortgage Banking

Association. The outlook for the remainder of the year, however, is less certain, as the Fed’s signals of potential rate increases, rather than the cuts markets had previously anticipated, weigh on borrowing conditions. Notably, banks have resumed more active participation in CRE lending, partly driven by the volume of bank-held loans maturing this year requiring refinancing. Alternatively, uncertainty in the financial markets may redirect institutional capital toward stabilized CRE as a safer investment opportunity.

The California Forecast

According to the UCLA Anderson School of Management’s Spring 2026 forecast, the California economy is positioned to reaccelerate, driven by AI infrastructure investment and fiscal stimulus. High-productivity technology sectors continue to expand, while construction, retail, and hospitality face headwinds from tariff and immigration policies. The state recovered in March 2026, adding 28,700 non-farm payroll jobs, and the unemployment rate declined to 5.3%, down from 5.4% in the prior month. California has added approximately 91,700 jobs in the first quarter of 2026, the strongest start to a year since 2022. California’s ongoing fiscal pressures, including a projected state budget deficit exceeding $17 billion, represent an additional headwind.

Concluding Remarks

The U.S. economy in 2026 faces competing signals that complicate a straightforward assessment. A

Hormuz-driven energy shock has pushed headline inflation to 4.2% in May, which is higher than the

Fed’s 2% target rate. At the June FOMC meeting, a unanimous decision was made to keep the Federal

Funds Rate steady, with Kevin Warsh signaling a potential rate increase. At the same time, the May jobs report beat muted expectations, with non-farm payrolls adding 172,000 jobs against a consensus forecast of 80,000, and AI infrastructure investment provides a meaningful demand tailwind.

The mid-June ceasefire agreement and the ongoing Strait of Hormuz reopening process have reduced the most acute near-term energy risk, though the 60-day nuclear negotiation window carries its own uncertainty, and a breakdown in follow-on talks could reverse recent market gains. Oil prices have retreated from early conflict highs following the ceasefire, as markets price in a gradual normalization of Strait transit passage. A durable resolution of the outstanding nuclear and sanctions issues would further reduce energy-driven inflationary pressure, consumer strain, and Fed policy complexity.

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California continues to underperform the nation on employment, with housing production constrained by elevated construction costs, regulatory barriers, and financing costs. The CRE sector remains at a pivotal stage nationally, shaped by elevated borrowing costs, a substantial debt maturity wall, record office vacancy, and elevated energy-driven operating expenses. Stabilized assets and limited new supply in select property types continue to provide support where demand fundamentals remain sound.

Risks to national and state-level forecasts include a breakdown in ongoing nuclear negotiations and prolonged Strait of Hormuz disruption, renewed trade-policy uncertainty, the direction of monetary policy under new Fed Chair Warsh, and continued CRE refinancing stress concentrated, primarily, in the office and multifamily sectors.

Median Household Income Total median household income for the region is presented in the following table. Overall, the subject’s

MSA and county compare favorably to the state and the country.

Income

2025 Median 2025 Average 2025 Per Capita

Area HH Income HH Income Income

United States $72,233 $104,831 $41,000

California $105,380 $151,302 $53,106

San Francisco-Oakland-Fremont, CA $146,945 $208,970 $77,235

San Mateo County $169,967 $249,033 $86,654

Redwood City city $169,574 $258,508 $92,488

Source: ESRI (ArcGIS)

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Conclusions Historically, San Mateo County has been considered a desirable place to live and work. Physical features and a strong local economy attract both businesses and residents. It is a worldwide leader in technology and a regional employment center with an increasingly diversified economy. While traffic congestion will continue to be a problem, residents remain among the most affluent in the country.

The regional outlook includes declining populations in most counties. Out-migration during the pandemic coupled with continued increases in housing costs are trends that are likely to continue to keep local populations from growing substantially. Household incomes are increasing at the fastest pace since the 1980s; however, inflation is outpacing those gains, leaving households with increasing debt to keep pace. Although inflation subsided in early 2023, inflation rose in 2025. In September and

October 2025, the Federal Reserve reduced its benchmark interest rate, resulting in a target range of

3.75% to 4.00%. Supply chain disruptions continue to impact various sectors of the economy, but many businesses have been recovering.

With respect to commercial and residential real estate, increasing interest rates began to stifle transaction volumes in mid-2022, a trend that has continued without much change into 2025. Banks and institutional lenders have not been active for some time, leaving financing to private money lenders and cash buyers. Loan interest rates, where loans are available, have essentially doubled, leaving buyers to demand higher rates of return. While some distress is emerging, particularly in the office segment, sellers are mostly unwilling to transact at lower prices, keeping market participants in a wait-and-see posture. Reports indicate that once inflation stabilizes and interest rates can be projected with more certainty, transaction volumes will likely increase. In any case, the historic reasons for growth in the region remain the same, and, thus, the expectation is that normal growth will resume over time.

CITY AND NEIGHBORHOOD ANALYSIS

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City and Neighborhood Analysis

NEIGHBORHOOD MAP

Overview The property is located in Redwood City, California, which is centrally located on the bay side of the

San Mateo Peninsula, 25 miles south of San Francisco. To the north are affluent Hillsborough, San

Carlos, Belmont, San Mateo and Burlingame. To the south are the prestigious areas of Atherton, Menlo

Park, and Palo Alto. Redwood City was incorporated in 1868 and is the San Mateo County Seat.

Transportation to the city is considered good. Rail transportation is served by the Southern Pacific main line with freight station spur lines. Caltrain’s passenger service is also available between San Jose and San Francisco. Air service is provided by San Francisco International Airport, which is 15 miles to the north. Bus transportation is provided by San Mateo County Transit intercity. Transportation by water is available from the Port of Redwood City. Freeway service is provided by U.S. Highways 101, 82, 84 and Interstate 280.

Highway 101 runs roughly in a north/south direction, connecting Redwood City to the major cities of

San Francisco and San Jose, and links to Highway 92 to the north and Highway 84 to the south. Both

Highways 92 and 84 run in an east-west direction giving access to the East Bay cities and the Western

Coastal communities on the peninsula. Transportation access to the city is good.

Redwood City combines residential, industrial, and commercial elements in a largely urban environment. Its waterfront provides a yacht harbor and the only deep-water port in the South Bay. A wide variety of housing types are available.

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Redwood City is also home to the commercial and residential master-planned community of Redwood

Shores. Located within the Redwood Shores area is a master-planned corporate center designed to accommodate 3.5 million square feet of high-quality office space. Nearly 200 businesses are located within the Shores Center. Also located in Redwood Shores are 1,100 acres of residential development.

All utility services are available to the city. Natural gas and electrical power are supplied to Redwood

City by PG&E. Telephone service is provided by SBC, and water is purchased from the San Francisco

Water Department. Sewer service is supplied by Redwood City under a Joint Power Authority with

South Bayside System Authority. The capacity of the South Bayside System Authority plant is 24 million gallons per day and has a peak flow of 2.6 million gallons per day. Redwood City has adopted a Master

Plan of storm drains, and there are no charges assessed.

Ampex, BroadVision, Electronic Arts, and Evernote are among the companies based in Redwood City.

The largest employers in the city include Electronic Arts, the County of San Mateo, Kaiser Hospital, Sequoia Hospital, and the Redwood City School District, all of which employ 1,000 or more people.

In addition to the water recreation found at the Port of Redwood City and the waterways of Redwood

Shores, the city has more than 30 parks, one live theater, a 12-screen and a 20-screen theater complex, three library branches, a skating rink, two municipal pools, five community centers, two golf courses, and more than a dozen public tennis courts.

Neighborhood Location and Boundaries The subject neighborhood is located in the central section of Redwood City. The area is urban in nature as it is located in the core of downtown. The neighborhood is bounded by Highway 101 to the north, Scott Avenue to the east, Woodside Road to the south, and Whipple Avenue to the west.

Transportation Access Within the immediate area of the subject, transportation access helps define the character of its development. Major travel and commuter routes within the area of the property include Winslow Street and Marshall Street. Access to the area is considered good.

Land Use Trends The neighborhood is experiencing an intensification in land use, from single story development to high rise office and multifamily apartments.

Demographics The following table depicts the area demographics in Redwood City within a one-, three-, and five-mile radius from the subject.

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Neighborhood Demographics

Radius (Miles) 1 Mile 3 Mile 5 Mile

Trade Area (Sq. Mi.) 3.14 28.27 78.54

Trade Density (Pop/Sq. Mi.) 6,156 4,697 4,191

Population

Census Population (2010) 25,958 121,421 252,292

Census Population (2020) 30,022 130,252 269,140

Current Population (2025) 31,219 135,075 279,853

Projected Population (2030) 33,443 138,995 285,126

Compound Annual Growth

2010 - 2020 1.5% 0.7% 0.6%

2020 - 2025 0.8% 0.7% 0.8%

2025 - 2030 1.4% 0.6% 0.4%

Households

Census Households (2010) 8,779 43,455 94,828

Census Households (2020) 11,126 46,612 98,656

Current Households (2025) 11,509 47,312 100,314

Projected Households (2030) 12,346 48,449 101,526

Compound Annual Growth

2010 - 2020 2.4% 0.7% 0.4%

2020 - 2025 0.7% 0.3% 0.3%

2025 - 2030 1.4% 0.5% 0.2%

Average Household Size (2025) 2.62 2.79 2.74

Source: ESRI (ArcGIS) (Lat: 37.487286, Lon: -122.230548)

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The population is 135,075 within a three-mile radius of the subject property with a projected annual growth rate of 0.6%. There were 50,988 housing units within the three-mile radius. Housing is near evenly divided amongst owner and renter occupants..

Nuisances & External Obsolescence Neighborhood properties have adequate levels of maintenance. No adverse or unfavorable factors were observed.

Neighborhood Life Cycle Most neighborhoods are classified as being in one of four stages: growth, stability, decline, or revitalization. Overall, the subject neighborhood is in the revitalization stage of its life cycle.

Immediate Area Uses The below aerial photo exhibits the uses located in the subject’s immediate vicinity.

Neighborhood Demographics (cont.)

Radius (Miles) 1 Mile 3 Mile 5 Mile

Trade Area (Sq. Mi.) 3.14 28.27 78.54

Trade Density (Pop/Sq. Mi.) 6,156 4,697 4,191

2025 Housing Units

Median Home Value $1,693,182 $1,941,866 $2,000,001

Median Year Built 1970 1962 1967

Total Housing Units 12,522 50,988 108,389

Owner-Occupied Housing % 22.6% 48.9% 49.2%

Renter-Occupied Housing % 69.3% 43.9% 43.4%

Vacant Housing % 8.1% 7.2% 7.5%

2025 Employment

Total Establishments 0 0 0

Total Employees 0 0 0

Average Commute Time n/a n/a n/a

% College Graduates 54.2% 57.6% 65.1%

2025 Income Summary

Median Household Income $152,091 $182,871 $195,817

Average Household Income $233,821 $281,196 $291,481

Avg Spending/Household $58,179 $71,034 $73,492

Per Capita Income $87,465 $98,270 $104,691

Source: ESRI (ArcGIS) (Lat: 37.487286, Lon: -122.230548)

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IMMEDIATE AREA USES

Source: Google Map

Uses along Hamilton Street in the vicinity of the subject are primarily commercial and civic in nature.

Directly north of the subject, across Marshall Street, are older low-rise commercial and office buildings, including the two-story Watry Building at 811 Hamilton Street (built 1929), along with public parking serving the downtown core. Directly east of the subject, across Hamilton Street, are Courthouse Square, a public plaza that hosts community events throughout the year, and the San Mateo County History

Museum, housed in the historic county courthouse. Directly south of the subject, on the Broadway-fronting portion of the same block, are entertainment and commercial uses anchored by the historic

Fox Theatre (2215 Broadway), with ground-floor retail, restaurant, and personal service uses continuing along Broadway and Main Street beyond. Directly west of the subject are mid-rise office uses fronting

Winslow Street, including the five-story office building at 889 Winslow Street; beyond Winslow Street is the Caltrain right-of-way, with the Redwood City Caltrain station located approximately one block southwest of the subject.

Additional uses in the immediate area include the Cinemark Century 20 cinema, Class A office buildings such as 601 Marshall Street, newer mid-rise multifamily and mixed-use residential development, and civic and governmental uses associated with the County government center, City Hall, and the

Redwood City Public Library along Middlefield Road. The City of Redwood City is actively encouraging high-density multifamily development in the area through the Downtown Precise Plan, having removed the cap on net new residential units within the plan area and imposing no site-specific density or FAR limits, which has resulted in continued mid- and high-rise residential construction in the downtown core. As shown above, the density of uses in the area is relatively high with few vacant parcels available.

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Analysis and Conclusions The neighborhood is characterized by a dense, pedestrian-oriented, mixed-use downtown core anchored by civic, entertainment, office, and retail uses, with strong transit accessibility via Caltrain and a development pattern of infill and redevelopment consistent with the Downtown Precise Plan. The concentration of employment, government services, and entertainment venues generates consistent demand for commercial space, and recent mid- and high-rise office and residential construction reflects continued investor and developer confidence in the district. The neighborhood is considered to be in the revitalization stage of its life cycle, and the outlook for the area is positive.