OFFERING MEMORANDUM PREPARED BY BRIAN ARMON, SIOR, CCIM JULY 2014

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1 PREPARED BY BRIAN ARMON, SIOR, CCIM JULY 2014

2 TABLE OF CONTENTS CONFIDENTIALITY & DISCLAIMER 1 OVERVIEWS 2 REGIONAL OVERVIEW 4 PROJECT OVERVIEW 5 AREA MAPS 3 LOCATION MAP 8 AERIAL MAP WITH PROJECT 9 MASTER PLAN 10 AERIAL PHOTOS 11 PHASE I OFFERING 4 MULTI-FAMILY OFFERING - 21 ACRES 14 COMMERCIAL OFFERING - 34 ACRES 15 SINGLE-FAMILY OFFERING - 88 ACRES 16 ADDITIONAL INFORMATION 5 DEMOGRAPHICS Commerce Real Estate Solutions. This statement, with the information it contains, is given with the understanding that all negotiations relating to the purchase, renting, or leasing of the property described above shall be conducted through this office. No warranty or representation, express or implied, is made as to the accuracy of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals. Some aerial photography by DigitalGlobe or Aerials Express. (project path: G:\1 - Projects\Reno_Office\Armon_Brian\3 - Packages\RubyVistaRanch_OM) CUSHMAN & WAKEFIELD COMMERCE REAL ESTATE SOLUTIONS

3 The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Commerce Real Estate Solutions and should not be made available to any other person or entity without the written consent of Commerce Real Estate Solutions. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Commerce Real Estate Solutions has not made any investigation, and makes no warranty or representation, with the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, the entitlements, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any land purchaser, tenant, or any tenant s plans or intentions to occupy the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Commerce Real Estate Solutions has not verified, and will not verify, any of the information contained herein, nor has Commerce Real Estate Solutions conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. CUSHMAN & WAKEFIELD COMMERCE REAL ESTATE SOLUTIONS 3

4 REGIONAL OVERVIEW Ruby Vista Ranch at Spring Creek ( RVR ) is the only Master-Planned Community in Elko County, located in Northeastern Nevada along Interstate 80 between Reno, Nevada (290 miles to the west) and Salt Lake City (230 miles to the east). Nestled six miles to the south of the City of Elko, this bucolic setting provides incredible views of the Ruby Mountains and Lamoille Canyon, and lies minutes from the Ruby Marshes, Southfork Reservoir, and the Humboldt Mountain range that provide some of the greatest hunting, fishing, skiing and other outdoor recreational opportunities in the world. In addition to the natural beauty, Elko County (48,818 residents) boasts one of the most stable economies and expanding job markets in the United States. Identified as the 5th top-producing gold region in the world, it should be noted that the local economy is diversifying its employment base to be less dependent on the precious mineral, gold. However, with the recent announcements of investments and discoveries by both Barrick Gold and Newmont Mining companies, globally ranked no. s 1 st and 4 th, respectively, several billion dollars will be spent in the next 5-10 years to develop deposit resources, requiring an estimated 8,000 jobs to be created over the next 3-5 years. Having steadily increased in population by more than 200% over the past 20 years with no end in sight, demand for apartments and single-family units, as well as retail/commercial product, has far outpaced supply. Presently there are fewer than 750 apartment units in Elko with a 0% vacancy factor, significant waiting lists and annual rent increases of 12%; increasing home values with limited housing stock and no production homebuilding; and nominal commercial/retail supply contributing toward an estimated Annual Retail Leakage of $8,000,000. CUSHMAN & WAKEFIELD COMMERCE REAL ESTATE SOLUTIONS 4

5 PROJECT OVERVIEW RVR consists of 1,460 acres of fully entitled land with an approved 2,300 single family lots, 1,600 multi-family dwelling units, 99 acres of commercial, 34 acres of light industrial, 30 acres dedicated to public facilities, with the balance providing for parks and open spaces to be enjoyed by the entire community. While the entire project is anticipated to be developed over the next 20 years, Phase I is being released herewith, and includes an approved 21.1 acres of multi-family (320 units), 34.2 acres of commercial (est. 300,000 square feet) and 87.7 acres of single-family (5,000 and 6,000 sq. ft. minimum lot sizes). Prior to 1990, the bulk of previous regional development occurred in the City of Elko. However, due to topographical and BLM ownership constraints in the City, and desirability of the Spring Creek area, Spring Creek has absorbed much of the population growth over the past 20 years as indicated by the figures below: SPRING CREEK ELKO Census Pop. % Increase Census Pop. % Increase , , , % , % Proximity to Elko Proper: Situated at the north-end of Spring Creek (only 6 miles south of Elko proper) Ruby Vista Ranch reduces historic commute times from Elko to Spring Creek by ½ or more. Proximity to Schools and Family Services: Located immediately across the street from modern elementary (548 students), middle (695) and high schools (958) and Mormon Church. Spring Creek High School is ranked as the 15 th best high school in the state by SchoolDigger.com. Locked-In Entitlements: With a 25 year development agreement, approved Development Handbook, the cost and time required for permitting is significantly less than in the city of Elko. Locked-In and Reduced Permitting Costs: No new county fees can be introduced to Ruby Vista Ranch for the next 20+ years and, because the project is in the County, permit fees are dramatically reduced. For example, multifamily permits are 39% of what would be paid in the City of Elko representing a savings of $4,803 per apartment unit based on a 100-unit apartment complex evaluation. CUSHMAN & WAKEFIELD COMMERCE REAL ESTATE SOLUTIONS 5

6 Infrastructure Included: Upon completion of the respective sales of Phase I, all electrical, water rights and infrastructure, sewer and natural gas is planned to be constructed. Value in Development Quality: There are no other master-planned communities in the Elko area that include quality development standards as prescribed in the Development Handbook. Additionally, an initial fee charged by/for the project will develop and maintain common area improvements, including parks and public walkways. Ruby Vista Ranch Homeowner s Association: Ruby Vista Ranch will establish its own Homeowner s Association that will provide for the construction and management of common areas and amenities. As such, all entitlement and approvals have been addressed. Desirable Quality of Life: Ruby Vista Ranch offers incredible views of the Ruby Mountains and is located a short distance from the Lamoille Canyon, Ruby Marshes, Southfork Reservoir, and Humboldt Mountain range that provide some of the greatest recreational opportunities anywhere in the world. CUSHMAN & WAKEFIELD COMMERCE REAL ESTATE SOLUTIONS 6

7 ENTITLEMENTS / INFRASTRUCTURE OVERVIEW Entitlements: Ruby Vista Ranch at Spring Creek ( RVR ) is fully entitled with a 25 year development agreement. The development agreement allows density to be transferred within the project and maintains the same planning codes and county fees that existed at the time of execution of the agreement. Only building permits will be necessary for any use that is allowed within the adopted development code. We also have an approved jurisdictional determination from the Army Corps of Engineers ("ACOE") and are approximately 60 days away from having an amended conditional letter of map amendment from FEMA. We will only need nationwide permits from the ACOE for linear roadway crossings. No individual permits are needed and nationwide permits can be issued by the local office of the ACOE. Roundabout: RVR shall be responsible for the construction of a roundabout at the intersection of Boyd/ Kennedy Road and Lamoille Highway, as approved by the amendment to the Spring Creek/Lamoille Master Plan. This roundabout will provide excellent access to the project, and from the project to the Spring Creek elementary, middle, and high school complex located immediately across the Lamoille Highway. Water: Spring Creek Utilities Company will provide water and wastewater services to the project. An existing agreement provides for water to be delivered to the property line at the entrance to the project at the Boyd/Kennedy roundabout within six (6) months of notification that the project is proceeding, to include storage. Sewer: The project will utilize an on-site sewer treatment plant that will be built in phases. Per a draft agreement between RVR and Spring Creek Utilities Company (SCUC), upon satisfactory completion of each phase of the plant it shall become the responsibility of Spring Creek Utilities in regards to ownership and maintenance responsibilities. Power: NV Energy is the local electric purveyor. Significant capacity already exists on site to accommodate a major portion of the RVR project. Natural Gas: RVR is working with Southwest Gas to bring natural gas service to the project. Plans call for an extension of the existing line that is currently installed to the Northeastern Nevada Regional Hospital to the roundabout (approximately 3 miles to the north along Lamoille Highway) The initial installation cost shall be born by RVR but benefit from reimbursements from any users along the Lamoille highway that tie into the line within ten (10) years. This could include commercial users located at the intersection of the Lamoille Highway and SH 228 and the Spring Creek school complex. CUSHMAN & WAKEFIELD COMMERCE REAL ESTATE SOLUTIONS 7

8 LOCATION MAP Twin Falls, ID (180 miles) Reno, NV (290 miles) Salt Lake City, UT Elko (230 miles) (6 miles to the North) Las Vegas (435 miles) CUSHMAN & WAKEFIELD COMMERCE REAL ESTATE SOLUTIONS 8

9 OFFERING MEMORANDUM no ) Re iles To 0 M 9 (2 To Sa (23 lt L 0 M ake ile Cit s) y AERIAL MAP WITH PROJECT AERIAL MAP with Project City of Elko (18,297 Population) Spring Creek High Density Housing Ruby Vista Ranch Spring Creek School Complex Spring Creek Low Density Housing Spring Creek Elementary School & Fire Station South Fork Reservoir CUSHMAN & WAKEFIELD COMMERCE REAL ESTATE SOLUTIONS 9

10 MASTER PLAN CUSHMAN & WAKEFIELD COMMERCE REAL ESTATE SOLUTIONS 10

11 AERIAL PHOTOS Elko (6 Miles) Elko (6 Miles) CUSHMAN & WAKEFIELD COMMERCE REAL ESTATE SOLUTIONS 11

12 AERIAL PHOTOS Elko (6 Miles) City of Elko (6 Miles) PHASE I Spring Creek Schools Complex RUBY VISTA RANCH CUSHMAN & WAKEFIELD COMMERCE REAL ESTATE SOLUTIONS 12

13 PHASE ACRES - MULTI-FAMILY CURRENT ENTITLEMENT/ZONING: INFRASTRUCTURE: PRICE: Multi-Family (R2) entitled for 320 dwelling units (d.u.) To be completed upon sale, including water infrastructure, water rights, sanitary sewer and natural gas. $4,800,000 / $5.22 per square foot / $15,000 per d.u ACRES - COMMERCIAL (RETAIL) CURRENT ENTITLEMENT/ZONING: INFRASTRUCTURE: PRICE: C-1 / Group I To be completed upon sale, including water infrastructure, water rights, sanitary sewer and natural gas. $6,703,884 / $4.50 per square foot (Land) 87.7 ACRES - SINGLE-FAMILY CURRENT ENTITLEMENT/ZONING: - Villages 4 and 10, +/-67.6 Acres Single-Family (R1) entitled for 6,000 sq. ft. min. lot size - Village 11, +/-20.1 Acres Multi-Family (R2) entitled for 5,000 sq. ft. min. lot size and approved for duplexes INFRASTRUCTURE: PRICE: To be completed upon sale, including water infrastructure, water rights, sanitary sewer and natural gas. $9,769,419 / $2.55 per square foot (Land) CUSHMAN & WAKEFIELD COMMERCE REAL ESTATE SOLUTIONS 13

14 PHASE ACRES - MULTI-FAMILY CURRENT ENTITLEMENT/ZONING: INFRASTRUCTURE: PRICE: Multi-Family (R2) entitled for 320 dwelling units (d.u.) To be completed upon sale, including water infrastructure, water rights, sanitary sewer and natural gas. $4,800,000 / $5.22 per square foot / $15,000 per d.u. Elko (6 Miles) Apartments 21.1 Acres Spring Creek High School, Middle School, Elementary School Phase I CUSHMAN & WAKEFIELD COMMERCE REAL ESTATE SOLUTIONS 14

15 PHASE ACRES - COMMERCIAL CURRENT ENTITLEMENT/ZONING: INFRASTRUCTURE: PRICE: C-1 / Group I To be completed upon sale, including water infrastructure, water rights, sanitary sewer and natural gas. $6,703,884 / $4.50 per square foot (Land) Commercial 34.2 Acres Commercial/Retail 34.2 Acres Elko (6 Miles) Spring Cree High Schoo Middle Scho Elementary Spring Creek School High School, Middle School, Elementary School PHASE I Phase I CUSHMAN & WAKEFIELD COMMERCE REAL ESTATE SOLUTIONS 15

16 PHASE ACRES - SINGLE-FAMILY CURRENT ENTITLEMENT/ZONING: - Villages 4 and 10, +/-67.6 Acres Single-Family (R1) entitled for 6,000 sq. ft. min. lot size - Village 11, +/-20.1 Acres Multi-Family (R2) entitled for 5,000 sq. ft. min. lot size and approved for duplexes INFRASTRUCTURE: PRICE: To be completed upon sale, including water infrastructure, water rights, sanitary sewer and natural gas. $9,769,419 / $2.55 per square foot (Land) Single-Family 87.7 Acres Elko (6 Miles) SINGLE FAMILY 87.7 Acres V4 V11 PHASE I Phase I Spring Cree High Schoo Middle Scho Elementary Spring Creek School High School, Middle School, Elementary School V10 CUSHMAN & WAKEFIELD COMMERCE REAL ESTATE SOLUTIONS 16

17 DEMOGRAPHICS Demographic and Income Profile Report Elko Trade Area Commerce Real Estate Solutions Summary Population 59,946 60,645 63,436 Households 21,853 22,114 23,325 Families 15,218 15,410 16,214 Average Household Size Owner Occupied Housing Units 15,228 15,023 15,937 Renter Occupied Housing Units 6,625 7,091 7,388 Median Age Trends: Annual Rate Area State National Population 0.90% 1.02% 0.67% Households 1.07% 0.96% 0.71% Families 1.02% 0.92% 0.57% Owner HHs 1.19% 1.10% 0.91% Median Household Income 2.19% 3.59% 2.75% Households by Income Number Percent Number Percent <$15,000 2, % 2, % $15,000 - $24,999 2, % 1, % $25,000 - $34,999 2, % 1, % $35,000 - $49,999 2, % 2, % $50,000 - $74,999 4, % 5, % $75,000 - $99,999 3, % 4, % $100,000 - $149,999 2, % 3, % $150,000 - $199, % % $200, % % Median Household Income $54,457 $60,674 Average Household Income $64,169 $70,821 Per Capita Income $23,957 $26, Population by Age Number Percent Number Percent Number Percent 0-4 4, % 4, % 4, % 5-9 4, % 4, % 4, % , % 4, % 4, % , % 4, % 4, % , % 3, % 3, % , % 7, % 8, % , % 7, % 7, % , % 9, % 8, % , % 7, % 8, % , % 3, % 5, % , % 1, % 1, % % % % Race and Ethnicity Number Percent Number Percent Number Percent White Alone 49, % 49, % 51, % Black Alone % % % American Indian Alone 3, % 3, % 3, % Asian Alone % % % Pacific Islander Alone % % % Some Other Race Alone 4, % 4, % 5, % Two or More Races 1, % 1, % 1, % Hispanic Origin (Any Race) 11, % 11, % 12, % Data Note: Income is expressed in current dollars. Source: U.S. Census Bureau, Census 2010 Data. Esri forecasts for 2011 and CUSHMAN & WAKEFIELD COMMERCE REAL ESTATE SOLUTIONS 17

18 DEMOGRAPHICS Demographic and Income Profile Report Elko Trade Area Commerce Real Estate Solutions Trends Annual Rate (in percent) Area State USA 0 Population Households Families Owner HHs Median HH Income Population by Age Percent Household Income 2011 Population by Race $35K - $49K 13.3% $50K - $74K 22.2% $25K - $34K 9.5% $75K - $99K 17.2% $15K - $24K 10.4% <$15K 11.1% $200K+ 1.3% $150K - $199K 2.6% $100K - $149K 12.4% Percent White Black Am. Ind. Asian Pacific Other Two Percent Hispanic Origin: 18.5% Source: U.S. Census Bureau, Census 2010 Data. Esri forecasts for 2011 and January 12, 2012 CUSHMAN & WAKEFIELD COMMERCE REAL ESTATE SOLUTIONS 18

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