REO AUCTION th Street Oronoco, MN For a video tour, please visit:

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1 AUCTION ID: B REO AUCTION May 16-18, For a video tour, please visit: th Street Oronoco, MN 5596

2 PROPERTY DETAILS Property ID #: B Website live and viewable to the public on March 29, 216 AUCTION DATE: Live auction date is May 16, 216 at 9: AM PST through May 18, 216 at 1: AM PST AUCTION DATE HOTLINE: GENERAL INFORMATION: ARA has been selected as the exclusive marketing agent for the disposition of Ornoco Estates in conjunction with ten-x.com. Please make note of the following important terms and dates related to the auction process. These items are non-negotiable: 1. REGISTRATION: All Investors must register with ten-x.com at the following web address: 2. You are a sophisticated investor and understand the complexities of purchasing commercial real estate. 3. For non-institutional investors, you must provide proof of funds which demonstrates your liquidity and the ability to close the transaction for each auction asset you intend to place a bid. 4. You must submit an initial deposit of $1, to bid on Ornoco Estates. 5. You have reviewed the Due Diligence documents, the form of Purchase and Sale Agreement, and the Auction Terms and Conditions conducted all due diligence who think necessary PRIOR to placing a bid on any auction asset. 6. If you are the winning bidder, you must be available by phone within thirty (3) minutes of being declared the winning bidder. CRITICAL BEST PRACTICE: all bidders are aware of auction day hotline ( ) for all registration or technical issues. 7. The terms of the Purchase and Sale Agreement are non-negotiable and this agreement must be executed within thirty (3) minutes of being declared the winning bidder. 8. The earnest money deposit is due within twenty-four (24) hours of being declared the winning bidder for each auction asset. 9. Closing of the transaction will be within thirty (3) calendar / ten (1) business days after the Purchase and Sale Agreement has been executed or as specifically set forth in the Agreement. 1. You understand that all sales are FINAL, and that purchases are made on an AS IS, WHERE IS basis. 11. You understand that if you are declared the winning bidder and fail to close the transaction and purchase the asset, you may be subject to liquidated damages and/or specific performance requirements.

3 PROPERTY DETAILS ADDRESS COUNTY SITE INFORMATION th Street Oronoco, MN 5596 Olmsted TAX PARCEL IDS , , SITES 215 COMMUNITY TYPE All Age YEAR BUILT 1971 COMBINED LAND DENSITY acres 2.63 sites/acre INVENTORY HOMES 7 (7 vacant as of Feb 16) AVERAGE LOT RENT $275 (includes water, sewer and trash) PHYSICAL OCC 63% (135 sites as of Feb 16) ECONOMIC OCC 59% (127 sites as of Feb 16) INVESTMENT HIGHLIGHTS Rare opportunity to acquire a 215-site value-add deal with 59% economic occupancy in an MSA of over 212,. Community is well positioned to increase occupancy in the wake of the Destination Medical Center initiative, which is expected to expand Mayo Clinic s presence in the area with $6 billion in investment and the addition of 35, to 45, jobs over the next 2 years. Approximately $616,25 was spent on capital improvements in 213 including $575, on upgrades to the pond and $41,25 on the electrical infrastructure. Property has only seven park-owned homes that are included in the sale, some of which may be salvaged and filled. A regulatory agency may require that a new fence be built around the sewer lagoon. Oronoco Estates features an attractive curvilinear layout, clubhouse, playground and basketball course. Low density with attractive, well-maintained landscaping throughout. Roads appear to be in good condition and every lot includes, on average, two parking spaces. ZONING ROADS FLOODPLAIN WATER SEWER ELECTRICITY NATURAL GAS TRASH R-2 (mixed low density) Asphalt Zone D UTILITIES Private Well Private Lagoon Peoples Cooperative Power Minnesota Energy Resources Advanced Disposal AREA HIGHLIGHTS Oronoco Estates is well-located along US-52, which runs about 81 miles north to Minneapolis and less than ten miles south to Rochester. Amazing demographics with an average income of $111k and average home value of $262k in a three-mile radius of the community. Rochester, MN had a population of over 16, in 21 and the Rochester, MN MSA had a population of over 212, in 214 according to the US Census Bureau. Rochester s unemployment rate of 2.9% in December 215 was far below the national average of 4.8%, both numbers not seasonally adjusted. Mayo Clinic, the largest employer in MN, employs 35, and is nationally ranked by U.S. News and World Report in 15 adult and ten pediatric specialties, and is regionally ranked as the #1 hospital in MN. Other major employers in the area include Rochester Public Schools, employing 2,46; IBM, employing 2,2; Olmsted County, employing 1,24; and Olmsted Medical Center, employing 1,2. Approximately 15 minutes from the property, Apache Mall boasts 75, square feet of retail space and is anchored by Barnes & Noble, Herberger s, JCPenney, Macy s and Scheels All Sports, making it the largest shopping destination in Rochester. The community has proximity to numerous local attractions including the downtown Rochester farmers market, Bowlocity, Prairie Walls Climbing Gym, Rochester Golf and Country Club, and Quarry Hill Nature Center.

4 FINANCIAL ANALYSIS 212 July'13 T7 Ann Proforma INCOME Assumptions 2 Gross Scheduled Rent $41,929 $417,252 $416,837 $42,786 $79,5 Less: Vacancy.%.%.%.% 4.47% Less: Employee/Model.78% 3,24.66% 2,75.%.%.47% Less: Bad Debt.%.%.%.%.5% Less: Concessions.73% 3,15.38% 1,61.%.%.% Total Rental Income 98.49% $44, % $412,92 1.% $416,837 1.% $42, % 3 Plus: Other Income 4 8, , , ,57 23 Plus: Home Rental/Sales 51 11, , , Total Other Income 91 19, , , ,57 23 Effective Gross Income $424,345 $44,393 $418,391 $435, ,1 3,3 3,548 $415,553 5,14 5,14 $42, EXPENSES Repairs & Maintenance $21 $43,137 $234 $5,283 $419 $9,15 $33 $7,856 $25 Payroll , , , , Administrative 64 13, , , ,38 75 Marketing 6 1, , Professional Fees 7 1, , , ,225 6 Utilities Actuals Actual Exp Actual Exp Electricity 94 2, , , , Water & Sewer 9 2, , , ,4 12 Gas 7 1, ,793 Trash , , , , Total Variable Expenses $923 $198,419 $97 $28,64 $1,352 $29,58 $1,341 $288,246 $1,145 Taxes , , , , Land Lease 89 19, ,128 Insurance 56 11, , , ,14 55 Management Fee 3.5% 14, % 15, % 21, % 21,492 4.% Total Operating Expenses $1,315 $282,693 $1,355 $291,31 $1,684 $362,15 $1,643 $353,297 $1,466 Plus: Capital Reserves 5 Total Expenses $1,315 $282,693 $1,355 $291,31 $1,684 $362,15 $1,643 $353,297 $1,516 Actual Exp Proforma Exp $53,75 75,25 16,125 2,15 28,748 25,791 41,37 $246,76 4,455 11,825 16,823 $315,179 1,75 $325,929 NET OPERATING INCOME $141,652 $149,82 $56,286 $81,996 $94,638 UNDERWRITING ASSUMPTIONS and 213 financials are from former borrower; property went into receivership in Sept 13 and foreclosure was completed in Aug 14; 214 and 215 financials are from receiver 2. Proforma GSR = $275 x 215 sites x 12 months 3. Other Income average of last four years R&M expense includes cost of demolishing/refurbishing vacant homes following title turn in/eviction 5. Payroll includes one full-time manager, one full-time maintenance supervisor and seasonal maintenance help as needed 6. Adjusted Utilities grown 3% from Proforma Taxes = 215 Tax expense; 216 assessed value is $2,586,5 8. Numbers do not reflect actual expense 9. Insurance expense drops in 215 due to receiver bundling the property under their umbrella policy 1. Land Lease expense is for wastewater and moved to Water & Sewer expense in 214

5 PROPERTY location and AERIAL MINNEAPOLIS EAU CLAIRE ROCHESTER DEMOGRAPHIC INFORMATION 3 Miles 5 Miles 1 Miles 215 Population Estimate 12,731 34,55 123,71 22 Population Projection 13,575 35, ,422 Population Growth Estimate %.96%.91% Renter Occupied Housing Units 15.1% 25.4% 26.8% Owner Occupied Housing Units 83.4% 7.6% 67.6% 215 Est. Median Household Income $1,391 $79,357 65, Est. Median Owner-Occupied Housing Value $262,127 $234, ,968 Source: U.S. Census Bureau

6 Property LOCATION N Rochester Golf Country Club ROCHESTER MAYO CLINIC Largest nonprofit medical practice and research group in the world. To cement Rochester s status as a world-renowned medical destination center, MN state officials introduced the Destination Medical Center (DMC) initiative. DMC projects over $6 billion in investment over the next 2 years and the creation of 35, to 45, MN jobs. Employs 35, making it the largest employer in the state. IBM ROCHESTER CAMPUS 82-acre IBM training and manufacturing center located about seven miles from Oronoco Estates. Unused space has been leased to other major employers such as Hitachi Global Storage Technologies and Charter Communications. IBM employs an estimated 2,2 workers as of 214 making it the third-largest employer in the county. QUARRY HILL NATURE CENTER 329-acre park featuring hiking trails, a pond and a historical man-made sandstone cave. In 214, the park was officially recognized by the Greater Minnesota Parks and Trails Commission as a Minnesota Park of Regional Significance. Attracts over 1, visitors every year.

7 For a video tour, please visit: Additional information for Oronoco Estates is available on the website at: Property ID: B NATIONAL MANUFACTURED HOUSING GROUP PRIMARY CONTACTS: Todd Fletcher tfletcher@aranewmark.com T Andrew Shih ashih@aranewmark.com T Jon Shay jshay@aranewmark.com T Manufactured Housing Group: 91 S. MoPac Expressway, Barton Oaks Plaza II, Suite 275, Austin, TX T This information has been derived from sources deemed reliable. However, it is subject to errors, omissions, price change and/or withdrawal, and no warranty is made as to the accuracy. Further, no warranties or representation shall be made by ARA, A Newmark Company (ARA Newmark) and/or its agents, representatives or affiliates regarding oral statements which have been made in the discussion of the above property. This presentation, prepared by ARA Newmark was sent to the recipient under the assumption that s/ he is a buying principal. Any potential purchaser is advised that s/ he should either have the abstract covering the real estate which is the subject of the contract examined by an attorney of his/her selection, or be furnished a policy of title insurance. Do not contact the Property.