Qualified Opportunity Zone Considerations

Current Designation and 2027 Program Transition

268 Main Street is located within Buffalo Census Tract 165, GEOID 36029016500, a federally designated Qualified Opportunity Zone under the original 2018 Opportunity Zone program.

The designation may be relevant to purchasers considering a long-term rehabilitation or adaptive reuse of the property through a properly structured Qualified Opportunity Fund. Opportunity Zone treatment is not automatic, and a direct purchase of the property does not, by itself, qualify an investor for federal tax benefits.

Potential Investor Benefits

Under the original Opportunity Zone program, an investor with an eligible capital gain may make a qualifying equity investment in a Qualified Opportunity Fund. Subject to compliance with all applicable requirements, the investor may be eligible for preferential federal tax treatment.

For qualifying investments held for at least ten years, the program may permit the exclusion of qualifying appreciation associated with the Opportunity Zone investment. The availability and amount of any tax benefit depend upon the investor, timing of the eligible gain, Qualified Opportunity Fund structure, property acquisition, redevelopment program and continuing compliance.

The mandatory recognition date for gains deferred under the original program is December 31, 2026. Accordingly, the remaining benefit associated with deferral of the original gain is limited, and the potential exclusion of qualifying long-term appreciation may be the more significant consideration for an investor evaluating a 2026 transaction.

Property-Level Qualification Considerations

Because 268 Main Street is an existing building, an Opportunity Zone investment may require the property to satisfy the applicable substantial-improvement requirements. Under the original program, this generally requires qualifying additions to the building’s adjusted basis to exceed its adjusted basis during an applicable 30-month improvement period. Land is generally excluded from this calculation.

The property is currently occupied by established commercial tenants, including anchor tenant Crowley Webb under a lease expiring December 31, 2030. A prospective Opportunity Zone investor should therefore evaluate whether a phased rehabilitation, improvement of vacant and common areas, negotiated occupancy arrangement or other compliant redevelopment strategy could satisfy the applicable investment and improvement requirements.

No representation is made that the existing capital improvements, future acquisition price, proposed adaptive-reuse concepts or any particular development program will satisfy the substantial-improvement test.

New Opportunity Zone Program Beginning in 2027

Federal legislation has made the Opportunity Zone incentive permanent and established new Opportunity Zone designation cycles every ten years. The U.S. Treasury opened the current state nomination cycle on July 1, 2026, and the newly designated census tracts are expected to become eligible for new investment beginning January 1, 2027.

The 2027 program includes a new set of census-tract designations and revised investment provisions. The fact that Census Tract 165 is designated under the original 2018 program does not guarantee that the tract will be nominated by New York State and certified for the new designation period.

As of September 2026, no representation is made in this offering that Census Tract 165 will retain Qualified Opportunity Zone status beginning January 1, 2027. Prospective purchasers should verify the final New York State nominations and Treasury designations when released.

Potential Compatibility with Other Incentives

Depending upon the purchaser, ownership structure and final redevelopment plan, Opportunity Zone equity may warrant evaluation together with other potential resources, including:

• Federal Historic Rehabilitation Tax Credits

• New York State Commercial Historic Rehabilitation Tax Credits

• Erie County Industrial Development Agency incentives

• Restore New York or other competitive redevelopment funding

• C-PACE financing

• NYSERDA and utility energy-efficiency programs

• Other federal, state or local adaptive-reuse programs

The ability to combine these resources depends upon the applicable program requirements, eligible costs, tax treatment, ownership structure and restrictions against duplication of benefits.

Purchaser Evaluation Checklist

A prospective investor considering Opportunity Zone treatment should independently evaluate:

• Whether the investor has an eligible gain;

• The applicable investment deadline;

• Formation or selection of a Qualified Opportunity Fund;

• The required acquisition and ownership structure;

• Related-party restrictions;

• Allocation of the acquisition price between land and building;

• The building’s adjusted tax basis;

• The substantial-improvement requirement and 30-month period;

• Compatibility with existing tenant leases and phased construction;

• Working-capital and Qualified Opportunity Zone Business requirements;

• The anticipated holding period and exit structure;

• Compatibility with historic tax credits and other incentives; and

• Whether Census Tract 165 is included in the final 2027 designations.

Important Notice

This page is provided solely to identify a potential investment consideration for qualified purchasers. It does not constitute tax, legal, accounting, securities or investment advice.

No representation is made that the property, any purchaser, any Qualified Opportunity Fund or any proposed redevelopment will qualify for Opportunity Zone treatment. No tax savings or investment return is represented or guaranteed. Prospective purchasers must rely upon their own tax counsel, legal counsel, accountants and Opportunity Zone advisors.