REO AUCTION. 427 Fortsville Rd Gansevoort, NY For a video tour, please visit: September 19-21, 2016

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1 REO AUCTION September 19-21, (171 FULL HOOK-UP/173 PART HOOK-UP/3 CABINS) For a video tour, please visit: Fortsville Rd Gansevoort, NY 12831

2 AUCTION DETAILS Event Item #: B Property ID: Website live and viewable to the public on August 3, 216 AUCTION DATE: Live auction date is September 19, 216 through September 21, 216 AUCTION DATE HOTLINE: GENERAL INFORMATION: Newmark & Company Real Estate, Inc. d/b/a Newmark Grubb Knight Frank has been selected as the exclusive marketing agent for the disposition of Adirondack Gateway in conjunction with Ten-x Commercial. 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 the property. 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 427 Fortsville Rd Gansevoort, NY Saratoga TAX PARCEL IDS & SITES COMMUNITY TYPE YEAR BUILT 1976 COMBINED LAND SIZE DENSITY 347 (171 full hook-up, 173 partial hook-up and 3 cabins) All Age RV 56.2 acres 6.19 sites/acre RV IN-SEASON June 21 - September 3 RV DAILY RATE RV WEEKLY RATE $48 (in season) $39 (off season) $316 (in season) $253 (off season) RV SEASONAL RATE $2,425 - $2,95 CABIN DAILY RATE ELECTRICITY $114 - $144 (in season) $19 - $138 (off season) 3 amp service (86 sites) 5 amp service (258 sites) ZONING C-1 (Commercial 1) ROADS FLOODPLAIN WATER SEWER ELECTRICITY TRASH PROPANE Asphalt/gravel Zone C UTILITIES Moreau Water Department (included in rent) Septic (included in rent) National Grid (included in rent) Waste Management (included in rent) Suburban Propane (sold separately) INVESTMENT HIGHLIGHTS Opportunity to acquire a 344-site RV park located just off of US-87, a major thoroughfare running south to the New York City Metro area and north to Upstate New York s many natural attractions. Approximately 86% of the park's rental income comes from seasonal tenants who pay from $2,425 to $2,95 per season and many leave their RVs in the park year round. Many tenants live within an hour drive of the community and leave their RVs in the park to use as an affordable summer vacation home. A new owner could potentially grow the seasonal portion of the business by adding more full service lots. In addition, the park s convenient location just off of the highway positions it well to start catering to more transient tenants. Recent capital improvements include upgrading a section of the park from 3 to 5 amp service, a new pool liner, new septic pipe, new sewer pumps, a new playground, remodeled bathrooms, redone store and office, and upgrading the mini golf. Amenities include two swimming pools, a fishing pond, playground, mini golf, snack bar, shuffleboard, horseshoe pits, volleyball, basketball, a clubhouse, arcade and more. Most sites are serviced with 5-amp electric panels: 258 sites are 5-amp and 86 are 3-amp. AREA HIGHLIGHTS Saratoga county serves as a gateway to the 6.1 million acre Adirondack Park, the largest protected area in the contiguous United States. The world-renowned Saratoga Race Course is 15 miles from the property and draws hundreds of thousands of visitors during the summer meets. A report published in 215 by the Saratoga County Industrial Development Agency estimates that the track generates $237 million of economic activity for the local economy. Every year, thousands gather in Queensbury, less than 2 minutes from Adirondack Gateway, for the Adirondack Balloon Festival. In addition to the balloon launch, the festival hosts a number of vendors and a craft fair. Saratoga Spa State Park, known for its mineral springs, bathhouses and the Saratoga Performing Arts Center, attracted 2.9 million visitors in 213. Less than 2 miles north, Lake George is a popular summer destination offering numerous water activities, hiking and local attractions including Prospect Mountain and the Adirondack Winery Tasting Room. The Great Escape & Splashwater Kingdom Amusement Park is less than 2 minutes from the community. Moreau Lake State Park is minutes from the property and features a pristine lake, beach and hiking trails. Nearby Saratoga Springs and Glens Falls offer travelers convenient access to entertainment, services and amenities including several national retailers. Tourism plays a major role in the New York economy and is the state s fifth-largest industry with a $1.1 billion economic impact in 214.

4 FINANCIAL ANALYSIS 214 Actuals June '16 T12 Proforma 1 INCOME Seasonal Income 87.61% 542, % 556, % 65, % Transient Income 11.59% 71, % 82, % 95, % Monthly Income.56% 3,468.%.%.% Rental Units.24% 1, % 11, % 9, % Total Rental Income 1.% $619,5 1.% $649,76 1.% $71,837 1.% Plus: Other Income , , , Plus: COGs -58 (19,938) -62 (21,368) -62 (21,23) -64 Total Other Income 65 22, , ,95 51 Effective Gross Income EXPENSES Repairs & Maintenance $38 $16,25 $314 $17,857 $362 $124,687 $31 Payroll , , , Administrative 14 35, , , Marketing 25 8, , , Professional Fees 18 6, , , Utilities 8 9 per site $641,328 Actuals Actual Exp Electricity 16 54, , , Water & Sewer 6 2, 6 2,96 6 2,85 6 Gas 25 8, , ,95 27 Trash 25 8, , , Cable 74 25, , , Total Variable Expenses $1,235 $424,739 $1,57 $518,54 $1,484 $51,68 $1,364 Taxes 61 2, , ,29 66 Insurance 41 14, , , Management Fee 5.61% 36, 5.72% 38, 5.95% 43,34 6.% Total Operating Expenses $1,441 $495,732 $1,744 $599,841 $1,75 $61,953 $1,625 Plus: Capital Reserves 5 Total Expenses $1,441 $495,732 $1,744 $599,841 $1,75 $61,953 $1,675 per site $663,972 per site $727,932 Actual Exp per site 624,7 98,343 9,749 $732,162 39,475 (21,867) 17,68 $749,77 Proforma Exp $16,64 184,4 37,84 12,4 17,2 56,615 2,148 9,219 14,567 28,825 $469,133 22,69 22,36 44,986 $559,169 17,2 $576,369 NET OPERATING INCOME $145,596 $64,131 $125,979 $173,41 Expense Ratio 77.3% 9.34% 82.69% 76.87% UNDERWRITING ASSUMPTIONS 1. Actual numbers based on financials provided by the client; Receivership occurred in August 215 and no representations or warranties are made regarding the accuracy of records prior to that date 2. Seasonal Income comes from tenants who pay from $2,425 to $2,95 (216 rates) for a space per season and most leave their RVs in the park year round 3. Total Rental Income grown 3% from June '16 T12 4. Other Income grown 3% from June '16 T12 5. Administrative expense is abnormally high in 215 due to approximately $57.5k in fees paid to the receiver and the June 216 T12 Professional Fees expense includes approximately $22k of fees paid to the receiver in September Adjusted Utilities grown 3% from June '16 T12, except for electricity, which is grown 3% from 214 due to an electricity credit given from the city in 215 resulting in an abnormally low electricity expense for that year 8. Proforma Taxes = June '16 T12 Taxes grown 3%; Current taxable value and property tax rate per the town, county and school tax bills are $1,185, and % respectively 9. Historical Capital Reserves are unknown and do not represent actual amounts 1. Proforma is first year projection put together by ARA Newmark and may not represent actual future performance

5 Site Map

6 PROPERTY photos

7 Property LOCATION Adirondack Park Lake George NEW YORK VERMONT CONCORD Saratoga Spa State Park MANCHESTER VERMONT ALBANY NEW YORK MASSACHUSETTS AMHERST MASSACHUSETTS SARATOGA RACE TRACK 5, seat capacity horse track open from July to September hosting prominent races such as the Travers Stakes, Alabama Stakes and Whitney Handicap. The area s booming hospitality and tourism sector is fueled by an estimated $142 million of economic impact from visitors to the track. 59% of visitors come from outside of the nine-county region surrounding the track. SARATOGA SPA STATE PARK 2,379-acre park featuring a wide range of attractions including a golf course, multiple museums, pools, mineral springs and performance venues. The Saratoga Performing arts Center is the official summer home of the Philadelphia Orchestra and New York City Ballet. 2.9 million visitors in 213. ADIRONDACK PARK Over six million protected acres, with 2.6 million state owned, make Adirondack park a prime spot for outdoor recreation. Over 1, lakes and 3, miles of rivers and streams. According to Adirondack Council s 213 Annual Report, the park hosts 1 million visitors annually.

8 For a video tour, please visit: Additional information for Adirondack Gateway is available on the website at: Event Item #: B ARA NEWMARK 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.