Summer 2017 Auction. No Starting Bids and No Hidden Reserves! Klamath Falls, Oregon. Upper Klamath Lake. Southview

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1 Summer 2017 Auction No Starting Bids and No Hidden Reserves! w w w. r mnw - au c t i o n s. c o m Bank-Owned Southview Development Portfolio near Running Y Ranch Resort Klamath Falls, Oregon Upper Klamath Lake Running Y Ranch Ridgewater Community Southview Entry #104- #107 - Southview PUD Home Site and Development Property Portfolio near Running Y Ranch Resort and Ridgewater Gated Community 104 Woodlands 105 Gardens Phase ± acre Phase 3-37 lots 18 lots Development Parcel PUBLISHED $360,000 / $195,000 / $480,000 / RESERVE: $9,729 per lot $10,833 per lot $2,790 per acre LAST First Time Offered First Time Offered First Time Offered ASKING: ZONING: ( )- PUD - Underlying zoning consists of R1 (Low Density Residential), R2 and R3 (Medium to High Density Residential), and C (Commercial) ± acre Development Parcel $185,000 / $2,681 per acre First Time Offered (107) Rural Residential / Non-Resource FINANCING: Subject to Seller s approval of Purchaser s credit: A 25% down payment with the balance secured by a first deed of trust, amortized over 20 years at 6% interest, calling for monthly payments of principal and interest; all due and payable at the end of 3 years This bank-owned portfolio of 55 home sites and 172± acres of development property is part of the master planned Southview Community, with a 69± acre parcel located next to the PUD at the entry by. The seller has an additional 409± acre development parcel adjoining Auction Property #106, as well as the Pristine Water Company, which may both be available for bulk purchase on a negotiated basis. The master planned Southview Community was originally approved in 2004 for up to 1,330 residential units, a mixeduse village center, and outdoor amphitheater. The entire PUD area is located within the city of Klamath Falls. SEALED BIDS DUE AUGUST 16, 2017 R E A L T Y M A R K E T I N G / N O R T H W E S T, Broker 522 SW 5th Avenue, Suite 725, Portland, Oregon 97204

2 Proposed Southview Master Plan Auction #106 (See Property Location Map) Running Y Ranch Resort Auction #104 Southview Auction #105 Southview is located next to Ridgewater, a gated residential community, and is three miles east of Running Y Ranch Resort, with Arnold Palmer-designed golf course, lodge, sport center, seasonal and year-round homes. Auction #107 A total of 100 homes have been built at Southview since Home resales at Southview have ranged from $175,000 to over $300,000, with the bulk of the sales in the low $200,000 range. The two lot-packages (Auction Properties #104 and #105) contain 51 single family lots and a 35,000 square foot parcel that can be easily divided into four lots. All lots are ready for construction, and all are located near existing residences. Auction Property #106 is the 172± acre lower PUD parcel that contains the balance of the undeveloped land near existing homes. It was originally planned for over 200 home sites, mixed-use village center, and recreation district including amphitheater area. All conditional use permits have expired for Auction Property #106, with opportunity for a new owner to prepare a revised plan under PUD guidelines to better meet the development market. Auction Property #107 is outside the PUD and not subject to PUD guidelines. Existing zoning will allow 10 and 20 acre parcels. Acquisition of the entire portfolio at $1,220,000, or in its individual components from $185,000 to $480,000, is a rare investment opportunity in the Klamath Falls market, with the added incentive of special seller financing. # Lot Package - Woodlands Phase 3 PUBLISHED RESERVE PRICE: $360,000 / $9,729 per Lot ZONING: PUD (See Supplemental Information Package for underlying zones) FINANCING: Subject to Seller s approval of Purchaser s credit: A 25% down payment with the balance secured by a first deed of trust, amortized over 20 years at 6% interest, calling for monthly payments of principal and interest; all due and payable at the end of 3 years. DESCRIPTION: The 37 lots in Woodlands Phase 3 are being offered in bulk, and seller financing is available to qualified buyers. Please see Supplemental Information Package for credit application. Corner of Orange Blossom and The lots are located at the northern end of the existing Southview West Ridge Drives Community, at the intersection of West Ridge Drive and Orange Blossom Proposed original Southview Master Plan - See Supplem Drive, with homes to the south located in Woodlands Phase 2. Twenty-one of the lots have frontage on Orange Blossom Drive, and the balance on West Ridge Drive. The bulk of the lots average 7,000± square feet Package for auction maps in size, with nine in the range of 8,400± to 13,225± square feet. AllInfomation lots are ready for construction, and all areproperty served by water, sewer, power, and gas. Some lots have views. Realty Mar Part of the Southview Master Plan proposed a 5.8± acre neighborhood park with entry along Orange Blossom Drive, between Lots 125 and 126. The property proposed for that park is part of the 172± acre Lower PUD land being offered as Auction Property #110. There are some residual trees on the proposed park property. LOCATION: SE ¼ of Section 36, Township 38 South, Range 8 East, Lots , Klamath County, Oregon

3 Ridgewater Community Orange Blossom Drive Woodlands Phase 3 Aster Lane Gardens Phase 1 West Ridge Drive Red Bud Drive To Southview entry # Lot Package* - Gardens Phase 1 PUBLISHED RESERVE PRICE: $195,000 / $10,833 per Lot ZONING: PUD (See Supplemental Information Package for underlying zones) FINANCING: Subject to Seller s approval of Purchaser s credit: A 25% down payment with the balance secured by a first deed of trust, amortized over 20 years at 6% interest, calling for monthly payments of principal and interest; all due and payable at the end of 3 years. DESCRIPTION: Fourteen of these lots are located at the south end of the existing Southview Community, at the intersection of West Ridge Drive and Aster Lane. Twelve of the lots average 5,000± square feet, with two at 6,694± and two at 6,852± square feet. All are designed to accommodate an entry level home. *There is one large lot containing 35,923± acres at the end of Aster Lane, with frontage along Red Bud Drive, which could easily be divided into four home sites that average 8,900± square feet. All lots are ready for construction and all are served by water, sewer, power, and gas. Some lots could have views. Four of the home sites were sold in Gardens Phase 1. Land south of the lots is part of Auction Property #110. The original Master Plan had proposed a small village center with mixed use, located between the entry and along both sides of West Ridge Drive. The partially-constructed amphitheater is part of the recreation district in the proposed Master Plan. LOCATION: NE ¼ of Section 1, Township 39 South, Range 8 East and the SE ¼ of Section 36, Township 38 South, Range 8 East, Lots 1, 2, 4, 5, 6, 7, 8 (which has potential for conversion to four lots), 9, 10, 11, 12, 13, 14, 15, 17, Klamath County, Oregon Corner of Rose Bud Drive and Aster Lane View south from 409± acre property not part of Auction

4 # ± Acre Development Parcel PUBLISHED RESERVE PRICE: $480,000 / $2,790 per Acre ZONING: PUD (See Supplemental Information Package for underlying zones) FINANCING: Subject to Seller s approval of Purchaser s credit: A 25% down payment with the balance secured by a first deed of trust, amortized over 20 years at 6% interest, calling for monthly payments of principal and interest; all due and payable at the end of 3 years. DESCRIPTION: This is the largest future development tract being offered by the seller as part of the Southview Sealed Bid Auction. It contains the majority of undeveloped land within the existing Southview Community, and had originally been planned for over 200 single family lots, with additional townhomes or apartments in the village center, designed around a center square. An estimated 24 acres of the Auction Property was designated Recreation District (amphitheater/ park), and 2.45± acres as Commercial District near the entry along West Ridge Drive. Prior to the seller taking title, the owner had secured Conditional Use Permits for additional phases of the Woodlands Development, but these have since expired. A new owner will need to obtain new entitlements which meet land use regulations and guidelines for a Planned Unit Development by Klamath County. Underlying zoning within Southview consists of R1 - Low Density Residential, R2 and R3 - Medium to High Density Residential, and C - Commercial District. Additional information regarding prior plans, and contact for city of Klamath Falls, are included in the Supplemental Information Package. LOCATION: Tax Parcel Numbers R892693, R892703, R892725, R892730, R894997, R894993, Klamath County, Oregon. #107-69± Acre Development Parcel Along PUBLISHED RESERVE PRICE: $185,000 / $2,681 per Acre ZONING: Rural Residential and Non-Resource FINANCING: Subject to Seller s approval of Purchaser s credit: A 25% down payment with the balance secured by a first deed Auction Property #107 of trust, amortized over 20 years at 6% interest, calling for monthly payments of principal and interest; all due and payable at the end of 3 years. DESCRIPTION: The 69± acre parcel east of the main entry is not within the city of Klamath Falls, and is not part of the Southview PUD. It was planned to accommodate access from Auction Property #106 to the balance of land containing 409± acres planned as Upper Ridge at Southview for primarily single family lots with views of Mt. Shasta and Upper Klamath Basin. The 69± acres have R-10 (Rural Residential) zoning, with minimum lot size of 10 acres. A portion is zoned NR (Non- Resource), with 20 acre minimum parcel size. Access to this tract will be from Auction Property #106, and the seller will retain an easement to serve the balance of the property, as outlined in the Supplemental Information Package. LOCATION: Township 39 South, Range 8 East, portion of Section 1 and Township 39 South, Range 9 East, portion of Section 6, Klamath County, Oregon. SEALED BIDS DUE NO LATER THAN 5:00 PM, AUGUST 16, 2017 Auction Property #106 at end of Orange Blossom Drive Call Now for Supplemental Information and Bid Package REALTY MARKETING / NORTHWEST, Broker 522 SW 5th Avenue, Suite 725, Portland, Oregon 97204

5 N Running Y Ranch Resort Ridgewater Community #104-Woodlands Phase 3 Highway ± Acres Bank-Owned Property not part of Auction #105-Gardens Phase 1 #107-69± Acres - Outside PUD # ± Acres Upper Klamath Lake Klamath Falls Rare Opportunity for Acquisition of Bank-Owned Development Portfolio near Four-Season Resort and Downtown Klamath Falls To Medford Entry To Klamath Falls

6 Southview Auction Property Location Map Auction # ± Acres To Running Y Ranch Resort Auction #104 Auction #105 Auction #107 Auction #104 - Woodlands Phase 3 Total of 37 lots Auction #105 - Gardens Phase I fourteen existing lots with option to subdivide existing 35,923± square foot parcel REALTY MARKETING / NORTHWEST, Broker 522 SW 5th Avenue, Suite 725, Portland, Oregon 97204

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