Eastvale. Ontario Ranch ESPERANZA PLANNED COMMUNITY ONTARIO. Cleveland Ave. Limonite Ave. Eucalyptus Ave. Bellegrave Ave S Milliken Ave.

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1 660 Home Sites - Ontario Ranch Limonite Ave Eastvale Cleveland Ave Eucalyptus Ave Bellegrave Ave S Milliken Ave Ontario Ranch Edison Ave EXCLUSIVE OFFERING MEMORANDUM WD Land 94 Discovery Irvine, CA BRE Lic No

2 TABLE OF CONTENTS EXECUTIVE SUMMARY. 3 PROCESS & TIMING 4 LOCATION MAPS Regional Map... 5 Local Map... 6 High Aerial... 7 Low Aerial... 8 Retail/Amenity Aerial... 9 MAPS, SITE PLANS & RENDERINGS Site Plan DEVELOPMENT Overview Schedule Due Diligence Materials Definition of a Finished Lot STREET LANDSCAPE PLANS Milliken Avenue Merrilll Avenue Mill Creek Avenue Bellegrave Avenue MARKET Inland Empire Demographic Information Actively Selling Communitites Map Actively Selling Communities Pricing Graph Actively Selling Communities Assigned Schools Exhibit Inland Empire Freeway Project DISCLAIMER AND DISCLOSURE WD LAND CONTACT INFORMATION 2

3 EXECUTIVE SUMMARY Esperanza is a new master planned community located in the Ontario Ranch area of the City of Ontario, the newest and most extensively planned area in the city. The community is well located being strategically positioned between two off-ramps and being the closest community in the Ontario Ranch to the Eastvale Gateway Shopping Center. This planned community offers a varied mix of lot sizes with appropriate product segmentation for faster absorption in the market place. The property will benefit from existing backbone utilities and approved plans, which will allow for easy development that is not dependent on other projects or processing of plans for offsite backbone. Key Property Highlights Include: Excellent location due to the property being located in the donut hole of Southern California, completely surrounded by development. The Ontario Ranch area of Ontario is at the center to the economic engine of the Inland Empire. Esperanza has a superior location within the Ontario Ranch by being the closest community to two freeway off/onramps, the Eastvale Gateway Shopping Center and existing residential development. Buyers may offer on whichever and as many planning areas as they would like, but the direction is to sell 2 to 3 of the most southwest planning areas to start the development of the project. CONTACT INFORMATION LES WHITTLESEY Foudning Partner , ext. 14 les.w@wdland.com BRE Lic No LAURA MACDOWELL Marketing Coordinator , ext. 23 lmacdowell@wdland.com Esperanza is fully entitled providing no entitlement risk. There is very little development risk as the site has access to all utilities, and all offsite backbone is not dependent on others for completion. The community is located next to major improvements that the NMC Consortium has installed, which provides access to backbone infrastructure. The community has been well segmented with 7 different lot sizes to provide greater diversity of product type. A new K-5 elementary school site is located within the community for future development. 3

4 PROCESS AND TIMING OFFER PREPARATION Relevant due diligence information is available to Buyers in order to provide the necessary information to complete an offer. Seller is seeking a Buyer who has a strong understanding of the property and market, and has corporate support for an acquisition in the market and this type of transaction. In addition, for Seller to best understand the underwriting of Buyer for the project, Seller requests offers are to be made with the following information provided by Buyer: Residual value of the property with Finished Lot Values based on Seller s Definition of a Finished Lot Product size, mix and pricing assumptions for the planning areas to be bought Direct costs for house construction used in property evaluation Project Timing and Development Schedule OFFERING Structure Seller wishes to establish the project by selling 2-3 planning areas to a builder. In addition to the work to be completed on the property to be acquired, the Buyer will install the necessary backbone infrastructure for the community and to grade the balance of the planning areas to a superpad status Price Please provide the associated finished lot value per planning area being purchased and confirm that the finished lot value definition matches that of Seller s. Terms Seller has the capability to provide various alternatives to a Buyer as far a structure and timing of payments. A credit will be provided against the total purchase price for a prorata share of the costs associated with the additional work to be competed that is not on the property. Seller to retain the remaining planning areas and the school site. Feasibility Buyer will have 45 days from a signed LOI and having been provided access to all available due diligence to complete a feasibility study of the project. Deposits At opening of escrow, Buyer will deposit $250,000 as a refundable deposit. Upon approval of the Feasibility Period, Buyer shall release 10% of the final land residual value to Seller as a non-refundable but applicable deposit. The balance of the purchase price shall be determined depending on the number of parcels being bought and the costs of the improvements that are being completed. Close of Escrow Close of escrow shall be 30 days after approval of the feasibility. Seller is open to different time frames of closing depending on the proposed deal structure and resulting purchase price. 4

5 LOCATION MAPS REGIONAL MAP ONTARIO CHINO JURUPA VALLEY EASTVALE RIVERSIDE 5

6 LOCATION MAPS LOCAL MAP 6

7 LOCATION MAPS HIGH AERIAL ONTARIO RANCH Archibald Ave E Riverside Dr Haven Ave NMC Phase II COUNTRY SIDE Chino Ave EDEN GLEN THE AVENUE RICH HAVEN Edison Ave PARKSIDE GRAND PARK Eucalyptus Ave THE LAKES Bellegrave Ave PARK PLACE 7

8 LOCATION MAPS LOW AERIAL Cleveland Ave S Milliken Ave Edison Ave Eucalyptus Ave Bellegrave Ave 8

9 LOCATION MAPS RETAIL/AMENITY AERIAL Limonite Ave Eastvale Cleveland Ave Bellegrave Ave Goodman Birtcher Business Park (Under Construction) S Milliken Ave 9

10 LOCATION MAPS RETAIL/AMENITY AERIAL S Milliken Ave Bellegrave Ave 10

11 MAPS, SITE PLANS & RENDERINGS SITE PLAN 11

12 MAPS, SITE PLANS & RENDERINGS PHASING PLAN 12

13 MAPS, SITE PLANS & RENDERINGS SITE PLAN 13

14 MAPS, SITE PLANS & RENDERINGS SITE PLAN 14

15 MAPS, SITE PLANS & RENDERINGS SITE PLAN 15

16 MAPS, SITE PLANS & RENDERINGS SITE PLAN 16

17 DEVELOPMENT OVERVIEW ENTITLEMENT SUMMARY The project is fully entitled with all discretionary Entitlements in place. BACKGROUND OVERVIEW: The Esperanza Specific Plan (SP) was originally approved in August, The SP covers all of Esperanza, including the Property and the acreage to the north comprising of PA-1, PA-2, PA-3 and the northern portion of PA-4. While approved together, the PA s can be developed independently provided the builder complies with the infrastructure improvement requirements outlined in the respective Development Agreements. In 2014, in conjunction with the approved Tentative Maps for PA-4 and PA-5, the SP was amended to allow for courtyard product. There have been no other amendments to the SP. SUMMARY OF ENTITLEMENTS: Approved EIR and Specific Plan Recorded Development Agreement Tentative Tract Maps are approved are approved for all planning areas. Tentative Tract Maps Approved TTM A Map TTM & B Maps TTM A Map TM 17931, & B Maps TTM (PA 4) & (PA 5) Grading Plans & WQMP Approved and permit ready to issue pending 30 day burrowing survey, CFD ROI approval and final map recordation. PA s 10 (TTM 17931) & School PA s 8 (TM 17933) & 9 (TTM 17932) PA 6 (TTM 17935) PA 7 (TTM 17936) Intract Improvement Plans Approved with signed mylars PA 10 (TTM 17931) & School PA s 8 (TTM 17933) & 9 (TTM 17932) PA 6 (TTM 17935) PA 7 (TTM 17936) Final Engineering for TTM s & expected to take 3 months to design & 4-5 months for approval. 17

18 DEVELOPMENT OVERVIEW OFFSITE INFRASTRUCTURE IMPROVEMENTS The project is included in the NMC LLC Phase 1 backbone infrastructure plan. SEWER: The sewer line must be extended from the project along Bellegrave to the existing sewer in the Park Place Specific Plan. WATER: The backbone water is currently installed through site. RECYCLED WATER: Installed along Edison Ave. by the NMC LLC. Project will connect at either Mill Creek or Milliken Avenue. STORM DRAIN: Project will connect to the county line channel immediately to the south of the project in Bellegrave Avenue. DRY UTILITIES: The project has access to all dry utilities and has all Will Serve Letters for the project. Project will construct the following: Merrill Ave: Full width improvements along project frontage. Mill Creek Ave: 1/2 width improvements + median + 18 pavement along project frontage. Milliken: 1/2 width improvements (potential cost sharing with developer to East) along project frontage. Bellegrave Ave: Widen existing street along project frontage. NUMBER OF UNITS, SIZES, AND DIMENSIONS Planning Area #Units Product Lot Size Dimensions PA 4 82 lots Small Mews N/A 45*60 PA lots Large Mews N/A 60*60 PA 6 78 lots Alley Load *80 PA 7 76 lots Traditional Lot *85 PA lots Traditional Lot *90 PA 9 82 lots Traditional Lot *80 PA lots 2 Pack /50*80 PA Acres Elementary School N/A N/A 18

19 DEVELOPMENT OVERVIEW CFD/ASSESSMENT There will be a CFD with a maximum tax rate of 1.95%, excluding the HOA. Below is a summary of how the CFD works: NMC Builders has negotiated with the City the parameters that will allow each member to form CFDs on their respective properties utilizing the improvements installed by NMC Builders as eligible improvements ( CFDs ). This process resulted in a Memorandum of Understanding and a Master Acquisition Agreement, both approved by the City. The CFD consists of two parts: a City Services component for existing city services, and the balance for facilities/improvements. The amount assigned for services is $1387 for a Single Family Detached Unit and $1,202 for a Multiple Family Dwelling Unit. The difference between these amounts and the max tax rates will be used for facilities, which below describes what is acceptable to use. Memorandum of Understanding (MOU) The general parameters which will become the basis of future CFDs formed by Members are outlined in the MOU between NMC Builders and the City. At this time no CFD has been approved for the Property, and it is the expectation that this process will be completed by the ultimate builder. There are CFDs in process by other Members that will become templates for the Property CFD. * The minimum size of a CFD is 175 units. * Eligible CFD facilities shall not include intract infrastructure. * Net proceeds from CFDs shall be applied in the following order of priority ** Eligible Member Specific Improvements ** NMC Improvements via the MAA (see note below) ** Park Fees ** DIF ** City facilities * Purchase price of improvements shall be the lessor of the cost identified in the CA or actual reasonable cost. * Total tax burden shall not exceed 1.95% at the time of formation. * Total tax burden + HOA shall not exceed 2.15% at the time of formation, which may be waived for providing enhanced amenities (2.55% for attached). 19

20 DEVELOPMENT OVERVIEW CFD/ASSESSMENT Mountain View School District for kindergarten through 8th grade. Chaffey Joint High School District for grades Schools that will service this community initially will be: Elementary: Ranch View Elementary Junior High: Grace Yokey Middle School High School: Colony High School There is planned a K-5 in the Fall of 2017 in the Park Place community, which will service this project. In September of 2018, a K-8 will open within The Avenue Specific Plan. The school site for a K-5 elementary school in this community is slated to be the second elementary school for the area. There is no date at this time for opening of this school. School Mitigation Agreement with the Mountain View Elementary District: There is a School Mitigation Agreement that has been negotiated that the builders will pay the lessor of Level 2 School Fees as established by the State for MVSD, or $2.51 per square foot, indexed annually in accordance with a Construction Cost Index. All Impact Fees collected will be specifically earmarked for construction of facilities within the NMC. The school district also agreed in the agreement not to oppose any development in the Ontario Ranch area. Note that MVSD is currently proposing an increase of the Level 2 School Fees to over $3.50 per square foot. The MA excludes the Esperanza from paying this or any future approved increase. SFID An SFID is a form of CFD. The Agreement commits MVSD to pursue an SFID on the property within the NMC and to issue bonds on an as needed bases to construct facilities within the NMC. The estimated maximum tax load of the SFID is 0.11% although there are agreed upon thresholds contained in the agreement for issuance that allow the SFID to ratchet up with time (starting at zero, moving towards 0.11%). This will allow the Members to maximize their individual CFDs. The SFID was approved by a public vote on April 14, HOA HOA is estimated to be $75 per month. 20

21 DEVELOPMENT OVERVIEW OVERVIEW The New Model Colony Consortium (NMC, LLC) has invested approximately $150M in infrastructure including recent capital calls of over $60M towards the construction of major backbone streets and utilities. The scope of this investment in the Ontario Ranch includes the construction of Archibald Ave. (incl. all major utilities), and construction/re-alignment of Edison Ave. to connect to the Cantu-Galleano off-ramp at the 15 freeway. (See NMC construction exhibit) WATER Domestic Water (Francis Zone Water Loop) is completed in Archibald Ave. to Eucalyptus Ave., Eucalyptus Ave. to Milliken Ave., Milliken Ave. to Riverside. This provides Domestic Water in Eucalyptus Avenue through the project. STORM WATER Storm Drain: Various storm drain connections to the existing county channel in Bellegrave Milliken Ave. and Mill Creek Ave. SEWER Connects to existing sewer at Park Place Specific Plan. STREETS Merrill Ave: All perimeter improvement plans approved and signed for Merrill, Milliken, Bellegrave and Eucalyptus (Merrill) Avenues. LANDSCAPING HOA maintains in-tract landscaping and the LMD landscaping maintains the perimeter. Ontario Convention Center 21

22 DEVELOPMENT SCHEDULE 22

23 DEVELOPMENT SCHEDULE 23

24 DEVELOPMENT DUE DILIGENCE MATERIALS Due Diligence materials will be available via FTP website upon signing a Confidentiality Agreement. Please contact Broker or Coordinator to request access. 24

25 DEVELOPMENT DEFINITION OF A FINISHED LOT The definition of a finished lot shall mean, that all fees set forth in Seller s budget shall be paid (but specifically not including any fees for building permits and specifically not including any amounts paid or payable by reason of any community facilities districts ( CFD ), landscape maintenance districts ( LMD ), or other assessment districts or Mello Roos districts and all other work and obligations, whether on the site of the property, or outside the boundaries of the property, have been constructed, installed or completed in order to obtain a building permit for the construction of a single family residence upon the payment of the ordinary building permit fee. Consistent with the foregoing, the definition of finished lot shall refer to a lot: (i) which is graded to a blue top condition in accordance with all rough grading plans (but excluding precise grading) approved by all applicable governmental agencies, with a pad certified by a civil engineer with respect to line and grade and solid engineer with respect to compaction, each of which shall be licensed and in good standing in California, (ii) with all water, gas, sewer, electricity, telephone, and cable television conduit installed and stubbed to the lot lines, (iii) with all storm drain, and curb, gutter, and paving improvements (including driveway approaches and aprons from the back of the curb to the back of the sidewalks) to the streets constructed and installed, (iv) with all monumentation and perimeter walls installed on the project boundary as required by all applicable governmental agencies or by Seller s plans and specifications, (v) with all sidewalks, street lights, street signs, and water meters and boxes installed, (vi) with all fees and exactions (including school fees but excluding the fee for the building permit and other construction related permits and excluding amounts paid or payable by reason of any CFD, LMD, other assessment districts or Mello Roos districts), and (vii) with the completion of any park area, open space, other public amenities, and all other improvements as required by the conditions of approval to the tentative tract maps and the final maps or by any applicable governmental agencies. There will be an allowance of 5% for contingency on hard costs only. Specifically excluding, however, without limitation, (a) front yard landscaping and side and rear yard fencing (unless rear yard fencing is on the project boundary), (b) building permits, (c) any application or plan check fees associated with house construction (such as, without limitation, architectural plan check, design review, model complexes, precise grading plans, fences and walls that are not on the perimeter of the project), (d) any of Buyers due diligence costs and/or expenses incurred in connection with Buyers review of the property, (e) any legal fees and costs incurred by Buyer in connection with the property or the project, (f) any costs associated with the Buyer s sales program including, without limitation, any disclosure documents, California department of Real Estate filing fees, budget preparation and processing costs, fees, costs and expenses incurred for incorporating or organizing any homeowners association and any other costs or expenses related thereto, covenants, conditions and restrictions, and model merchandising, (g) engineering or staking associated with construction of homes, and (h) construction overhead costs, such as, without limitation, storm water pollution prevention plan monitoring and compliance measures, trailer rentals, portable toilets, temporary power and related items. Items NOT included as part of the definition are as follows: Utilities back of curb, lot pulls, precise grading, and yard drains. 25

26 STREET LANDSCAPE PLANS MILLIKEN AVENUE 26

27 STREET LANDSCAPE PLANS MERRILL AVENUE 27

28 STREET LANDSCAPE PLANS MILL CREEK AVENUE 28

29 STREET LANDSCAPE PLANS BELLEGRAVE AVENUE 29

30 MARKET INLAND EMPIRE DEMOGRAPHIC INFORMATION JOB GROWTH Employment is moving in an upwards trend As of May 2015, Riverside boasts a work force of over 1.02 million people. This is a 5% increase from 2010 in which they had a work force of a little over 970,000. San Bernardino boasts a 2015 labor force of almost 920,000 (as of May). Up 3.5% from their 2010 labor force of 889,000 Between the job market in the Inland Empire increased 2.7%, a faster rate than any part of California except the Bay Area. That s more than double the rate of Los Angeles County and nearly triple the pace of Orange County. That same year, the California state avg. was only in the high 1%-low 2% Between the job market in the Inland Empire increased 4% (51,800 jobs). California experienced an avg. increase of 2.3% According to a report by the LA Times, the Inland Empire will continue to add jobs at the fast rate of 3.4% annually over the next five years. It s projected that from 2014 to 2019, job growth will increase by 12.3% with construction and professional service as the fastest growing job sectors. INDUSTRY Amazon.com opened its second major fulfillment center in Moreno Valley this year. The facility serves as a hub for delivery of merchandise throughout the region. The company is planning to build another facility in Redlands. Macy s has also claimed some of the Inland Empire for a couple of their fulfillment warehouses QVC is set to open their first West Coast distribution center in Ontario by Creating over 1000 job openings by 2020 The Inland Empire is a hot-spot for large distribution centers which provide large quantities of new jobs. Ontario is already home to many household names and continues to grow rapidly in this area. Some distribution centers already located in the city of Ontario include: Target, Nordstrom, Sam s Club, BMW, and many more. 30

31 MARKET INLAND EMPIRE DEMOGRAPHIC INFORMATION POPULATION GROWTH Population is predicted to grow at an annual avg. rate of 1.5% compared to the predicted annual growth rate of California at.8% UNEMPLOYMENT The unemployment rate in Riverside has steadily declined to 6.4% in May 2015 from a high of 14.2% in October The region, which hit a low of 1.14 million jobs in February 2010, currently supports a record 1.31 million jobs. A 15% increase overall. San Bernardino has seen a drop in their unemployment rate from 14.2% in 2010 to 6.3% in 2015 Unemployment is moving in a downward trend. It is forecasted to stay low due to continuing job growth in the area. HOUSING PERMITS In 2008, Riverside permitted 4,100 new residential homes and San Bernardino sat at 3,100 for a total of 7,200 permits. In 2015, both counties have increased their new residential permits to a total of almost 10,100. Before the recession we saw almost 50,000 new permits between the two counties. Current permits are nowhere close to these astounding numbers. Permits are down 80% from what they were during the peak in However, according to forecasts, we are seeing the early stages of an uphill trend. This combined total between Riverside and San Bernardino is forecasted to climb up to 25,000 new permits by 2020 During the recession we saw a degradation of housing demand due to the high unemployment rate, causing prices to plummet. Since the recession we re seeing a drop in the unemployment rate, thus increasing the housing demand and quickly outrunning the rate at which new housing is being built. The total jobs-to-housing ratio is.87-to-1.0. The incremental jobs-to-housing ratio is at Housing demand is growing MUCH quicker than housing supply. You ll find similar incremental ratio s in Orange County ( ) 31

32 MARKET ACTIVELY SELLING COMMUNITIES MAP Belamaria Carriage House Amberly Lane Brookhaven Prescott Hampshire Waterford Camden Kensington Margate Elation Wellesley Serene Hillsdale Emerson Amherst St. James Canopy Creek Symphony Brio East Hadleigh Luna Estrella Harmony West Mill Creek Crossing 32

33 MARKET ACTIVELY SELLING COMMUNITIES PRICING GRAPH 33

34 MARKET ACTIVELY SELLING COMMUNITIES Prescott at College Park by Lennar - Chino Product Type: Detached Total Units: 94 Open Date: Sold Units: 71 Minimum Lot Size: 4,000 sf Remaining Units: 23 Tax Rate: 1.71% Overall Absorption Rate: 4.65/mo HOA: $159 Floor Plan Base Pricing Sq Ft Price/Sq Ft Bed Bath Parking Levels 1 $555,100 2,408 $ $563,000 2,628 $ $581,803 2,791 $ Brookhaven at College Park by Lennar - Chino Product Type: Detached Total Units: 93 Open Date: Sold Units: 11 Minimum Lot Size: 5,000 sf Remaining Units: 82 Tax Rate: 1.05% Overall Absorption Rate: 4.19 HOA: $150 Floor Plan Base Pricing Sq Ft Price/Sq Ft Bed Bath Parking Levels 1 $577,300 2,400 $ $579,000 2,625 $ $583,271 2,862 $ $593,339 2,967 $

35 MARKET ACTIVELY SELLING COMMUNITIES Emerson at College Park by Standard Pacific Homes - Chino Product Type: Detached Total Units: 68 Open Date: Sold Units: 52 Minimum Lot Size: 4,900 sf Remaining Units: 16 Tax Rate: 1.7% Overall Absorption Rate: 3.59/mo HOA: $126 Floor Plan Base Pricing Sq Ft Price/Sq Ft Bed Bath Parking Levels 1 $575,275 2,619 $ $594,900 2,774 $ $583,050 3,028 $ Hampshire at College Park by Standard Pacific Homes - Chino Product Type: Detached Total Units: 67 Open Date: Sold Units: 17 Minimum Lot Size: 5,000 sf Remaining Units: 50 Tax Rate: 1.7% Overall Absorption Rate: 2.62/mo HOA: $126 Floor Plan Base Pricing Sq Ft Price/Sq Ft Bed Bath Parking Levels 1 $609,395 2,995 $ $601,835 3,150 $ $619,520 3,320 $

36 MARKET ACTIVELY SELLING COMMUNITIES Amherst at College Park by Standard Pacific Homes - Chino Product Type: Detached Total Units: 63 Open Date: Sold Units: 55 Minimum Lot Size: 6,500 sf Remaining Units: 8 Tax Rate: 1.7% Overall Absorption Rate: 4.39/mo HOA: $126 Floor Plan Base Pricing Sq Ft Price/Sq Ft Bed Bath Parking Levels 1 $685,900 3,199 $ $696,020 3,379 $ $729,900 3,824 $ Wellesley at College Park by Standard Pacific Homes - Chino Product Type: Attached Total Units: 152 Open Date: Sold Units: 142 Minimum Lot Size: 4,200 sf Remaining Units: 10 Tax Rate: 1.6% Overall Absorption Rate: 3.01/mo HOA: $360 Floor Plan Base Pricing Sq Ft Price/Sq Ft Bed Bath Parking Levels 1 $425,900 1,815 $ $459,900 2,033 $ $468,900 2,087 $

37 MARKET ACTIVELY SELLING COMMUNITIES Hillsdale at College Park by Standard Pacific - Chino Product Type: Detached Total Units: 118 Open Date: Sold Units: 44 Minimum Lot Size: 4,000 sf Remaining Units: 74 Tax Rate: 1.55% Overall Absorption Rate: 3.13/mo HOA: $114 Floor Plan Base Pricing Sq Ft Price/Sq Ft Bed Bath Parking Levels 1 $432,555 1,747 $ $445,900 1,751 $ $478,900 2,039 $ $462,885 2,100 $ Estancia East by Lennar Homes - Eastvale Product Type: Detached Total Units: 77 Open Date: Sold Units: 55 Minimum Lot Size: 7,200 sf Remaining Units: 22 Tax Rate: 1.9% Overall Absorption Rate: 3.34/mo HOA: $90 Floor Plan Base Pricing Sq Ft Price/Sq Ft Bed Bath Parking Levels 1 $606,516 2,726 $ $650,990 2,832 $ $715,000 3,615 $ $798,200 4,644 $

38 MARKET ACTIVELY SELLING COMMUNITIES Estancia West by Lennar Homes - Eastvale Product Type: Detached Total Units: 103 Open Date: Sold Units: 63 Minimum Lot Size: 7,200 sf Remaining Units: 40 Tax Rate: 2.0% Overall Absorption Rate: 2.94/mo HOA: $90 Floor Plan Base Pricing Sq Ft Price/Sq Ft Bed Bath Parking Levels 1 $578,121 2,809 $ $623,200 3,264 $ $639,000 3,823 $ Mill Creek Crossing by Lennar Homes - Eastvale Product Type: Detached Total Units: 112 Open Date: Sold Units: 35 Minimum Lot Size: 6,000 sf Remaining Units: 77 Tax Rate: 1.95% Overall Absorption Rate: 3.24/mo HOA: None Floor Plan Base Pricing Sq Ft Price/Sq Ft Bed Bath Parking Levels 1 $523,490 2,284 $ $534,490 2,287 $ $545,690 2,809 $ $557,490 3,187 $ $649,290 4,121 $

39 MARKET ACTIVELY SELLING COMMUNITIES Luna at Copper Sky by D.R. Horton - Eastvale Product Type: Detached Total Units: 152 Open Date: Sold Units: 35 Minimum Lot Size: 3,000 sf Remaining Units: 117 Tax Rate: 1.9% Overall Absorption Rate: 2.33/mo HOA: $163 Floor Plan Base Pricing Sq Ft Price/Sq Ft Bed Bath Parking Levels 1 $421,990 2,244 $ $425,880 2,343 $ $455,880 2,541 $ $481,990 2,630 $ Estrella at Copper Sky by D.R. Horton - Eastvale Product Type: Detached Total Units: 72 Open Date: Sold Units: 34 Minimum Lot Size: 2,400 sf Remaining Units: 38 Tax Rate: 1.9% Overall Absorption Rate: 2.26/mo HOA: $217 Floor Plan Base Pricing Sq Ft Price/Sq Ft Bed Bath Parking Levels 1 $359,705 1,727 $ $383,645 2,062 $ $399,880 2,161 $

40 MARKET ACTIVELY SELLING COMMUNITIES Brio at The Trails by D.R. Horton - Eastvale Product Type: Detached Total Units: 113 Open Date: Sold Units: 42 Minimum Lot Size: 4,100 sf Remaining Units: 71 Tax Rate: 1.95% Overall Absorption Rate: 3.65/mo HOA: $66 Floor Plan Base Pricing Sq Ft Price/Sq Ft Bed Bath Parking Levels 1 $448,891 2,049 $ $455,386 2,333 $ $464,096 2,543 $ $475,170 2,646 $ Symphony at The Trails by D.R. Horton - Eastvale Product Type: Detached Total Units: 113 Open Date: Sold Units: 45 Minimum Lot Size: 4,100 sf Remaining Units: 68 Tax Rate: 1.95% Overall Absorption Rate: 3.58/mo HOA: $58 Floor Plan Base Pricing Sq Ft Price/Sq Ft Bed Bath Parking Levels 1 $479,985 2,538 $ $481,280 2,690 $ $487,395 2,797 $ $500,435 2,918 $

41 MARKET ACTIVELY SELLING COMMUNITIES Serene at The Lodge by KB Homes - Eastvale Product Type: Detached Total Units: 60 Open Date: Sold Units: 29 Minimum Lot Size: 3,000 sf Remaining Units: 31 Tax Rate: 1.2% Overall Absorption Rate: 2.55/mo HOA: $150 Floor Plan Base Pricing Sq Ft Price/Sq Ft Bed Bath Parking Levels 1 $474,880 2,432 $ $486,880 2,658 $ $504,880 2,920 $ $524,880 3,193 $ Harmony at The Lodge by KB Homes - Eastvale Product Type: Detached Total Units: 92 Open Date: Sold Units: 58 Minimum Lot Size: 2,500 sf Remaining Units: 34 Tax Rate: 1.2% Overall Absorption Rate: 5.17/mo HOA: $150 Floor Plan Base Pricing Sq Ft Price/Sq Ft Bed Bath Parking Levels 1 $372,880 1,544 $ $382,880 1,666 $ $382,880 1,741 $ $392,880 1,748 $ $407,880 2,093 $

42 MARKET ACTIVELY SELLING COMMUNITIES Elation at The Lodge by KB Homes - Eastvale Product Type: Detached Total Units: 54 Open Date: Sold Units: 41 Minimum Lot Size: 2,750 sf Remaining Units: 13 Tax Rate: 1.2% Overall Absorption Rate: 3.31/mo HOA: $150 Floor Plan Base Pricing Sq Ft Price/Sq Ft Bed Bath Parking Levels 1 $419,880 1,993 $ $429,880 2,194 $ $458,880 2,638 $ $466,880 2,664 $ Amberly Lane at West Haven by Lennar Homes - Ontario Product Type: Detached Total Units: 75 Open Date: Sold Units: 3 Minimum Lot Size: 5,250 sf Remaining Units: 72 Tax Rate: 1.95% Overall Absorption Rate: 0.47/mo HOA: $86 Floor Plan Base Pricing Sq Ft Price/Sq Ft Bed Bath Parking Levels 1 $443,290 2,042 $ $505,390 2,676 $ $560,590 3,217 $

43 MARKET ACTIVELY SELLING COMMUNITIES Carriage House at West Haven by Lennar - Ontario Product Type: Detached Total Units: 68 Open Date: Sold Units: 4 Minimum Lot Size: 6,300 sf Remaining Units: 64 Tax Rate: 1.04% Overall Absorption Rate: 0.93/mo HOA: $86 Floor Plan Base Pricing Sq Ft Price/Sq Ft Bed Bath Parking Levels 1 $524,490 3,164 $ $559,190 3,460 $ $607,590 4,134 $ Belamaria by Frontier Homes - Ontario Product Type: Detached Total Units: 130 Open Date: Sold Units: 57 Minimum Lot Size: 3,000 sf Remaining Units: 73 Tax Rate: 1.05% Overall Absorption Rate: 3.81/mo HOA: $158 Floor Plan Base Pricing Sq Ft Price/Sq Ft Bed Bath Parking Levels 1 $477,800 2,098 $ $486,300 2,191 $ $523,300 2,431 $

44 MARKET ACTIVELY SELLING COMMUNITIES Margate at Park Place by KB Homes - Ontario Product Type: Detached Total Units: 53 Open Date: Sold Units: 5 Minimum Lot Size: 4,000 sf Remaining Units: 48 Tax Rate: 1.98% Overall Absorption Rate: 0.67/mo HOA: $226 Floor Plan Base Pricing Sq Ft Price/Sq Ft Bed Bath Parking Levels 1 $473,880 2,801 $ $483,880 2,883 $ $493,880 2,961 $ Hadleigh at Park Place by KB Homes - Ontario Product Type: Detached Total Units: 69 Open Date: Sold Units: 13 Minimum Lot Size: 3,000 sf Remaining Units: 56 Tax Rate: 1.98% Overall Absorption Rate: 1.48/mo HOA: $226 Floor Plan Base Pricing Sq Ft Price/Sq Ft Bed Bath Parking Levels 1 $425,880 2,121 $ $435,880 2,331 $ $439,880 2,467 $

45 MARKET ACTIVELY SELLING COMMUNITIES Waterford at Park Place by Woodside Homes - Ontario Product Type: Detached Total Units: 65 Open Date: Sold Units: 7 Minimum Lot Size: 7,000 sf Remaining Units: 58 Tax Rate: 1.98% Overall Absorption Rate: 0.82/mo HOA: $226 Floor Plan Base Pricing Sq Ft Price/Sq Ft Bed Bath Parking Levels 1 $569,880 3,191 $ $567,880 3,205 $ $589,990 3,562 $ $619,880 3,984 $ Canopy Creek at Park Place by Woodside Homes - Ontario Product Type: Detached Total Units: 75 Open Date: Sold Units: 0 Minimum Lot Size: 2,700 sf Remaining Units: 75 Tax Rate: 1.98% Overall Absorption Rate: N/A HOA: $226/$70 Floor Plan Base Pricing Sq Ft Price/Sq Ft Bed Bath Parking Levels 1 $385,880 1,656 $ $393,880 1,758 $ $401,880 1,856 $ $411,880 1,990 $ $422,880 2,179 $

46 MARKET ACTIVELY SELLING COMMUNITIES St James at Park Place by TRI Pointe Homes - Ontario Product Type: Detached Total Units: 57 Open Date: Sold Units: 13 Minimum Lot Size: 4,000 sf Remaining Units: 44 Tax Rate: 1.98% Overall Absorption Rate: 1.67/mo HOA: $226 Floor Plan Base Pricing Sq Ft Price/Sq Ft Bed Bath Parking Levels 1 $455,900 2,418 $ $462,900 2,496 $ $483,900 2,681 $ Kensington at Park Place by TRI Pointe Homes - Ontario Product Type: Detached Total Units: 67 Open Date: Sold Units: 4 Minimum Lot Size: 5,000 sf Remaining Units: 63 Tax Rate: 1.98% Overall Absorption Rate: 0.69/mo HOA: $226 Floor Plan Base Pricing Sq Ft Price/Sq Ft Bed Bath Parking Levels 1 $537,900 3,078 $ $551,900 3,269 $ $558,900 3,415 $

47 MARKET ACTIVELY SELLING COMMUNITIES Camden at Park Place by Ryland Homes - Ontario Product Type: Detached Total Units: 45 Open Date: Sold Units: 4 Minimum Lot Size: 4,500 sf Remaining Units: 41 Tax Rate: 1.98% Overall Absorption Rate: 0.52/mo HOA: $226 Floor Plan Base Pricing Sq Ft Price/Sq Ft Bed Bath Parking Levels 1 $505,350 2,732 $ $526,295 2,901 $ $532,205 3,062 $

48 MARKET ASSIGNED SCHOOLS EXHIBIT Future K-8 Open Sept 2018 The Avenue Future K-5 Open Sept 2017 Park Place Planned Community RANCH VIEW ELEMENTARY API: 828 Great Schools: Old Archibald Ranch Rd Ontario, CA GRACE YOKLEY MIDDLE API: 789 Great Schools: S Turner Ave Ontario, CA COLONY HIGH SCHOOL API: 736 Great Schools: E Riverside Dr Ontario, CA

49 MARKET INLAND EMPIRE FREEWAY PROJECT SR-91 Project Extend toll road on the 91 between Orange County/Riverside County lines and interstate 15, replacing the single carpool lane in each direction Expanding to 8 lanes in each direction. These will be including an auxiliary lane, one general purpose lane, and two tolled express lanes Lanes added between 71 and I-15 in both directions 49

50 MARKET INLAND EMPIRE FREEWAY PROJECT Interchange improvements will be at: 91/Main Street A new tolled express lane direct connector will be constructed, to and from the 91 tolled express lanes to the new tolled express lanes in the median of I-15 south of the 91 91/Lincoln Avenue The Lincoln Avenue eastbound on-ramp and off-ramp will be similar to the existing condition, but will change the hook ramps to connect to the newly extended D Street east of Lincoln 91/Maple Street The existing eastbound ramp on Maple Street will be replaced by a hook on-ramp that will begin at 6th Street opposite Paseo Grande The on ramp from Maple Street will become an extension of 6th Street south of the 91, with a flyover ramp that will merge the new lanes 91/Serfas Club-Auto Center Drive The eastbound on-ramp from Serfas Club Drive/Auto Center Drive will be rebuilt to cross beneath the eastbound off-ramp to Maple Street. Existing Frontage Road south of the 91 that connects Serfas Club Drive and Maple Street will be realigned and moved further south to provide more room for the new 91 lanes and ramps 71/91 Interchange Connecting ramps and lanes between the 71 and 91 will be improved 91/Green River Road The westbound on-ramp and off-ramp at Green River Road will be adjusted to fit the newly widened 91 The westbound off-ramp alignment will be improved with a new railroad overhead bridge Express Lane access will be near Green River Metrolink and Express Bus service will be expanded Under construction To be completed in

51 MARKET INLAND EMPIRE FREEWAY PROJECT 91 FREEWAY SR-91 High-Occupancy Vehicle Lane (HOV) Project One lane in each direction of SR-91 6 Mile segment From Adams Street to 60/91/215 interchange in Riverside Roadway Improvements Relocate 9th Street westbound on ramp to 10th Street Braid eastbound and westbound ramps at 14th Street and University Avenue Modifications to Arlington interchange Widen and reconstruct Madison eastbound on and off ramps and Central westbound off ramp Bridge Replacements 4th Street Cridge Street Pachappa Railroad Ivy Street Widen Existing Bridges Central Avenue Arlington Avenue Brockton Avenue/Mary Street Madison Street Jefferson Street Under construction To be completed in

52 MARKET INLAND EMPIRE FREEWAY PROJECT 71 FREEWAY 71/91 Interchange Project Construct an eastbound road south and parallel to Sr-91 between Green River Road and 91/71 interchange Improve connection between eastbound Green River Road on ramp and 71/91 interchange Replace the existing single-lane connection between eastbound SR-91 and northbound SR-71 with a new, two lane, direct flyover ramp Build a new, separate eastbound road just south of and parallel to SR-91 to provide improved access between the Green River Road interchange and the SR- 91/SR-71 interchange Under construction To be completed in 2018 SR-71 Corridor Improvement project Widen three lanes in each direction from the SR-91 to the San Bernardino county line Dates not yet announced 52

53 MARKET INLAND EMPIRE FREEWAY PROJECT 15 FREEWAY I-15/Railroad Canyon Road and Franklin Interchange Project Environmental Phase project status- addresses the underlying land and physical improvements to the property Roadway and ramp improvement widening Construction beginning May 2015-December 2019 I-15 Express Lanes Project Construct one to two tolled lanes in each direction between the I-15/Cajalco Road interchange and the I-15/SR60 interchange 15/91 Interchange Add a tolled express lane connector from eastbound SR-91 to southbound I-15 continuing as a southbound express lane in the median of the I-15 terminating south of Magnolia Avenue interchange Add a northbound tolled express lane in the median of I-15 from the south of the Magnolia Avenue interchange and continuing northbound as a tolled express lane connector to westbound SR-91 Timeline: Fall 2015: completion of environmental phase 2018: Begin Construction 2020: tolled express lanes open to traffic 53

54 DISCLOSURE AND DISCLAIMER POSSIBLE REPRESENTATION OF MORE THAN ONE BUYER OR SELLER A real estate broker (Broker), whether a corporation, partnership, or sole proprietorship, may represent more than one buyer or seller. This multiple representation can occur through an individual licensed as a broker or salesperson or through different individual broker s or salespersons (associate licensees) acting under the Broker s license. The associate licensees may be working our of the same or different office locations. Multiple Brokers: Broker (individually or through its associate licensees) may be working with may prospective buyers at the same time. These prospective buyers may have an interest in, and make offers on, the same properties. Some of these properties may be listed with Broker and some may not. Broker will not limit or restrict any particular buyer from making an offer on any particular property whether or not Broker represents other buyers interested in the same property. Multiple Seller: Broker (individually or through its associate licensees) may have listings on many properties at the same time. As a result, Broker will attempt to find buyers for each of those listed properties. Some listed properties may appeal to the same prospective buyers. Some properties may attract more prospective buyers than others. Some of these prospective buyers may be represented by Broker and some may not. Broker will market all listed properties to all prospective buyers whether or not Broker has another or other listed properties that may appeal to the same prospective buyers. Dual Agency: If Seller is represented by Broker, Seller acknowledges that broker may represent prospective buyers of Seller s property and consents to Broker acting as a dual agent for both seller and buyer in that transaction. If Buyer is represented by Broker, buyer acknowledges that Broker may represent sellers or property that Buyer is interested in acquiring and consents to Broker acting as a duel agent for both buyer and seller with regard to that property. In the event of dual agency, seller and buyer that: (a) Broker, without the prior written consent of the Buyer, will not disclose to the seller that the Buyer is willing to pay a price greater than the offered price; (b) Broker, without the prior written consent of the seller, will not disclose to the buyer that seller is willing to sell property at a price less that the listing price; and (c) other than as set forth in (a) and (b) above, a dual agent is obligated to disclose known facts materially affecting the value or desirability of the property to both parties. QUALIFICATIONS AND DISCLAIMER This sales information package and contents hereof, is provided for informational purposes only. Nothing contained herein is deemed to constitute an offer of sale or to impose upon Seller, or any of their affiliates, any obligation to negotiate the sale of any parcel or property, and all offers to purchase this property must be accepted by the Seller in writing. No representation or warranty, expressed or implied, is made regarding the information set forth herein, the factual accuracy or completeness of any such information or other materials contained herein. Seller reserves the right to make changes from time to time to any of the information contained or referred to herein, to change the price and/or terms and may withdraw the property from the market all without any obligations to notify the recipients of this sales information package. Any party which may enter into any written agreement to purchase the subject property shall make its own independent investigation regarding all aspects of the subject property and the development contemplated thereon without complete reliance upon the materials contained herein. Nothing contained herein is intended in any way to limit or mitigate the need for any independent investigation, which a prudent buyer would be required to undertake in order to determine all facts which could have any effect upon the acquisition or development of the subject property. Any prospective buyers ( Buyer ) are strongly advised to investigate the condition and suitability of all aspects of the property and all matters affecting the value or desirability of the property, including but not limited to the following items: size, lines, access and boundaries; zoning and land use; any conditions of approval, cost and fees to develop the site; utilities and services; environmental hazards; geological conditions; natural hazard zone; property damage; neighborhood, area and property conditions; common interest subdivisions and owner associations; and, specialty tax. If Buyer does not exercise these rights, Buyer is acting against the advice of WD Land. Buyer understands that although conditions are often difficult to locate and discover, all 7ject to changes or withdrawals without notice and does not constitute a recommendation, endorsement or advice as to the value of the subject property by WD Land or the Seller. This sales information package is the absolute property of WD Land and may only be used by parties approved by WD Land. No portion of this sales information package may be copied or otherwise reproduced or disclosed to anyone without the prior written authorization of WD Land and Seller. Offers not necessarily confidential: Buyer is advised that seller or listing agent may disclose the existence, terms, or conditions of buyer s offer unless all parties and their agent have signed a written confidentiality agreement. Whether any such information is actually disclosed depends on many factors, such as current market conditions, the prevailing practice in the real estate community, the listing agent s marketing and strategy and the instructions of the seller. Buyer and seller understand that Broker may represent more than buyer or more than one seller and even both buyer and seller on the same transaction and consents to such relationship. (C.A.R. FORM PRBS, 11/14) 54

55 CONTACT US FOR MORE INFORMATION LES WHITTLESEY Founding Partner , ext 14 BRE: LAURA MACDOWELL Marketing Coordinator , ext 23