Sierra Pines Mobile Home Park Located in Markleeville, California

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1 , Lake Tahoe, CA Markleeville, Ca Sierra Pines Mobile Home Park Located in Markleeville, California Coldwell Banker is pleased to present the Sierra Pines Mobile Home Park in Markleeville, Ca. This property is ideally located in picturesque Alpine County, surrounded by endless outdoor activities. The property features 30 mobile home sites, 4 RV sites, 4 storage spaces. There is also, a store/restaurant building (with gas pumps), a manager's residence, both stick built. This would be a natural fit for an owner/user as well as investor employing management. Alpine County and the surrounding area is a year round destination offering world class boating, fishing, water skiing, biking and hiking trails, camping, beaches and several golf courses. In the winter months visitors enjoy numerous ski resorts, endless cross-country skiing terrain, sleigh rides, snowmobiling and the famous Grover Hot Springs. The property benefits from a scenic Hwy 89 location and is just minutes from South Lake Tahoe and Douglas County NV. The continued growth and evolution of the areas major economic engines are expected to have a positive impact on both the residential and commercial components of the real estate market. South Lake Tahoe is currently undergoing significant gentrification with a $60 mi ll ion renovation for the Hard Rock Casino/Hotel, and the stalled Chateau project at Stateline, which includes upscale commercial/retail space, hotel and convention components which is currently under construction. In addition, Marriott and Heavenly's Vail Resorts have joined with the City of South Lake Tahoe on a path of controlled progress to invest in the endless year round attractions and activities that Tahoe offers.

2 , Lake Tahoe, CA Markleeville, Ca EXECUTIVE SUMMARY Property Address City I State I Zip County Offering Price Gross Income Expenses NOI (Net Income) Cape Rate Mobile Homes Spaces RV Spaces Storage Spaces Land Area Improvements Hwy 89 Markleeville, Ca Alpine $1,650,000 $214,980 $77,021 $137, % Acres (453,024 SF) 30 space mobile home park, 4 RV & 4 storage spaces. Store/Restaurant w/ gasoline pumps.

3 , Lake Tahoe, CA Markleeville, Ca INCOME AND EXPENSE SUMMARY Income Gross Scheduled Income Expenses Real Estate Taxes Water Tests & Fees Insurance Utilities Repairs & Maintenance (5%) Telephone Total Management (8.7%) Rent Expense Licenses Trash Internet & PC maintenance Vacancy (5%) Total Expenses $235,620 $10,217 $1,203 $5,269 $4,700 $11,78 1 $2,41 3 $20,408 $1,262 $3,039 $3,899 $1,049 $ 11,781 $77,021 Net Operating Income (NOI) Capitalization Rate $158,599 (9.9%)

4 McKinney & Associates Commercial Lake Tahoe, CA Sierra Pines Mobile Home Park Highway 89, Markleeville, CA Property Description AREA ANALYSIS Population The current population of Alpine County is 1,116 people, neighboring South Lake Tahoe is 21,286 people and Douglas County is 46,997 people. Alpine County's population has remained relatively constant with El Dorado and Douglas Counties experienced moderate growth from 2000 to 2015, with the larger percentage growth in the western portion of El Dorado County and southern portion Douglas County.

5 Lake Tahoe. CA Markleeville, CA Demographic statistics for Alpine, El Dorado and Douglas Counties are summarized in the following table. SELECTED AREA DEMOGRAPHICS ELDORADO COUNTY Population 2014 Estimate 183, Estimate Base 181, Census Median Household Income $69,297 Source: US Census Bureau Douglas County Population 2014 Estimate 47, Estimate Base 46,997 Median Household Income $60,100 Source: US Census Bureau Alpine County Population 2014 Estimate 1, Estimate Base 1,175 Median Household Income $58,636 Employment Major employment sectors in El Dorado, Douglas and Alpine Counties are government, services, retail trade, gaming, recreation and manufacturing. Employment sectors in the Markleeville area are recreation related including skiing, fishing, hiking, backpacking and casinos across the state line in Nevada. Transportation The city of Markleeville and Alpine County are served by Highway 89 which provides access to South Lake Tahoe and Placerville, to the west as well as Sacramento 120 miles to the west. Carson City, Nevada is approximately 20 miles to the northeast of Markleeville. Highway 89 provides access to the north side of Lake Tahoe and Reno, Nevada via Interstate 80. The Lake Tahoe Airport provides general aviation and corporate executive access. Conclusion and Relevance to the Subject Property The subject property benefits from good access to major highways and freeways and steady population growth over the last 10 years in both El Dorado and Douglas Counties. The continued growth and evolution of these counties and City of South Lake Tahoe's major economic engines are expected to have a positive impact on both the residential and commercial components of the real estate market.

6 Lake Tahoe. CA Markleeville, CA NEIGHBORHOOD INFLUENCES Location The subject is located on the west side of Hwy 89 approximately 5 miles north of Markleevi lle. Boundaries The neighborhood boundaries are considered to be: North: Lake Tahoe South: Markleeville East: Highway 88 West: Indian Creek Reservoir

7 Lake Tahoe. CA Markleeville, CA Land Use Land use in the neighborhood consists of residential, forest lands and recreational areas. Developments in the immediate vicinity of the subject consist of vacant land to the north, south and west. The area is primarily rural in nature. Access Highway 89 is the major north-south thoroughfare, located directly east of the subject property. Conclusion and Relevance to the Subject Property The neighborhood has features and qualities, which contribute to a positive demand for housing. All utilities are available throughout the neighborhood and the improvements in the area are generally in average condition. The streets and other public areas are also in average condition, and parking is adequate. The subject property benefits from the features of the neighborhood, a scenic, rural location with abundant recreational possibilities.

8 , Lake Tahoe, CA Markleeville, CA MARKET ANALYSIS VACANCY Affordable housing is in high demand in both Alpine and Douglas Counties. A factor of 5% is used as a general gauge for decent, safe and sanitary housing. PRIMARY COMPETITION The subject property's primary competition comes from similar affordable housing in both South Lake Tahoe and Douglas County. Rental rates for mobile homes at South Lake Tahoe and Douglas County tend to be at a higher rate than the subject property. CONCLUSION In summary, vacancy and rental rates appear stable. The subject property is well positioned with good locational attributes in the Markleeville area and a competitive rental rate.

9 Lake Tahoe, CA Markleeville, CA SITE ANALYSIS The description of the site can be detailed as follows: Location: The subject is located on the west side of Hwy 89. Ingress and egress to the subject is available from Hwy 89. Assessor's Parcel Number: Land Area acres or 453,024 square feet. The subject parcel would likely support and expansion of either additional mobile home sites and/or RV sites. Shape and Frontage: Irregular shape. There is approximately 300 feet of direct arterial frontage on Hwy 89. Topography and Drainage: The site is generally is a gentle upslope from Hwy 89. The western portion of the site is steeper terrain. Soils: No soils report was provided; it is assumed that soils are adequate for the existing use. Easements and Encroachments: The preliminary title report shown in the addendum identifies any known easements, restrictions, and encroachments on the subject. There does not appear to be any adverse easements or encroachments that would diminish the utility or marketability of the subject property. This valuation assumes that the market value of the subject property is not adversely affected by any easements, encroachments or other special conditions. Covenants, Conditions, and Restrictions: No private deeds or restricting covenants affecting development, other than zoning, were found to affect the site. Utilities: Private well and septic. Electricity, phone, and internet.

10 Lake Tahoe, CA Markleeville, CA Environmental Issues: No evidence of hazardous waste or toxic materials was visible. The value estimate rendered in this report is predicated on the assumption that there is no hazardous material on or in the property that would cause a loss in value. No evidence of hazardous waste or toxic materials was visible. Broker has no knowledge of the existence of these substances on or in the subject property. However, Broker is not qualified to detect hazardous waste or toxic materials. Adjacent Properties North: Vacant Land South: Vacant Land East: Vacant land. West: Vacant land Conclusion: The subject is a comprised of 10.4 acres on a paved street served by necessary utilities. Access is average. Visibility/exposure is considered excellent. There are no adverse soils conditions of which Broker is aware. In conclusion, from a physical standpoint, the site is considered adequate for many types of development. IMPROVEMENT ANALYSIS The subject property is comprised of several stick built buildings, including a store/restaurant, residence, shop and well/pump house. The remainder of the property consists of mobile homes and RV sites, storage sites and undeveloped land. The following is a description of the improvements based on our physical inspection and knowledge of construction techniques. The net rentable building area detailed below was derived from the rent roll provided by the owner and verified by field measurements:

11 Lake Tahoe. CA Markleeville, CA 96120

12 Lake Tahoe. CA Markleeville, CA 96120

13 Lake Tahoe. CA Markleeville, CA 96120

14 McKinney & Associates Sierra Pines Mobile Home Park Lake Tahoe. CA Markleeville, CA Property Description

15 Lake Tahoe, CA Markleeville, CA SITE/ UTILITY PLAN NEVADA MOBILE I-lOME PARK ROBERT DYKES

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