ACEQ INVESTMENT Inc. Property Offering:

ACEQ INVESTMENT Inc. Property Offering: Approximately 3.92 Acres In the Vicinity of 50th Street West & Avenue K In Los Angeles County APN: 3204-010-001&002

The Antelope Valley The Antelope Valley expands over two counties, Los Angeles and Kern County. It s surrounded by the Sierras to the north and the San Gabriel Mountains to the south, Antelope Valley is located northeast of the city of Los Angeles and covers the northern portion of Los Angeles County and the southeastern portion of Kern County. The Valley covers an area of approximately 3,000 square miles, about the size of Connecticut, and has a population of 446,342 and is expected to reach 780,504 by 2020 (GAVEA Economic Roundtable Report, 2007). This desert landscape, dotted with sage and dense groves of Joshua trees, is home to four incorporated cities Lancaster and Palmdale in Los Angeles County, and Tehachapi and California City in Kern County as well as several smaller unincorporated areas like Del Sur, Lake Los Angeles, Lake Hughes, Leona Valley, Littlerock, Pearblossom, Quartz Hill, Sun Village, and Rosamond. And these cities are growing. Based on US Census data, from 2000 to 2007, the population of Lancaster grew from 118,718 to 143,818, and the population of Palmdale grew from 116,670 to 145,468. The Valley is connected by a network of highways and roads. Freeway 14, heading north-south, connects California City in the north with Lancaster and Palmdale in the south and leads over the San Gabriel Mountains to Los Angeles. Highway 138, heading east-west, connects Interstate-5 on the western edge of the Valley with Victorville in San Bernardino County in the east. Smaller streets exist or are planned to be built every one-mile with streets running east-west lettered alphabetically and streets running north-south numbered chronologically. In addition to driving, there is a local bus service (Antelope Valley Transit Authority) and several airports Fox Field Airport and L.A./Palmdale Regional Airport located in Lancaster and Palmdale, respectively. And, just approved by California voters, by 2030, a high speed train will connect Lancaster and Palmdale with the San Francisco Bay Area and the city of Los Angeles. The earliest employment opportunities in the Valley were farming related but are now focused largely around aerospace. Edwards AFB was established in 1933 and was the site of many important aeronautical accomplishments like the first flight to break the sound barrier. Later in 1952, Plant 42 was built in northeast Palmdale and is home to Lockheed Martin, Boeing, Northrop Grumman, and BAE Systems, among other aerospace-related companies. As people have moved to the Valley to work for the growing aerospace industry, housing tracts were built in the middle of the Valley, pushing most farming operations farther to the west and east. The growing population has fueled the growth of service industry jobs and shopping, cultural, and business centers. Palmdale s Antelope Valley Mall is a main attraction as are several golf courses, parks, and museums. Antelope Valley is positioned at the center of growth with its abundance of land, efficient transportation, proximity to major cities, and home to its own growing industries. Data shown is obtained from sources deemed reliable. It has not been verified and its accuracy is not guaranteed by the source, ACEQ INVESTMENT INC., its representatives and Brokers/Agents. Photo provided without verification, may not represent current conditions. Date and origin of photo are not available. Map is not to scale and locations are approximate. reserves the right to correct any unintended errors

In the Antelope Valley, the growing population has fueled the growth of service industry jobs and shopping, cultural and business centers. It is a pro-business environment. It is considered as one of the largest consumer of energy in the world, making it an ideal location for renewable energy manufacturers. Retail is anchored by the Antelope Valley Mall in Palmdale and the Power Center in Lancaster. Home Depot, Best Buy, Costco, Staples, Macy s, Harris, Sears, Circuit City, Target, Wal-Mart, and K-Mart are a few that have invested. Rite Aid and Michael's have huge warehouses at Fox Field, creating massive distribution centers for their respective product lines. Major auto dealers are located in the Auto Malls of Lancaster & Palmdale and considered to be the largest in the region. For a higher education, the Antelope Valley has several options. The University of Antelope Valley, California State Polytechnic University, California Institute of Technology, California State Polytechnic University, Devry University, Pepperdine University s Graziadio School of Business and Management, Purdue University College of Engineering, University of Phoenix and West Coast Baptist College are all located locally. Developers building new homes in the Antelope Valley include U.S. Home, Beazer, Harris, Kaufman & Broad, Rancho Vista Development, Barratt Homes, Inco Homes, Granite Homes, & David Spiegel & Assoc. KB Home in its Alamosa community began construction on a new earth-friendly prototype home in late March 2010. They have utilized BYD s solar, battery, LED Lighting systems and an electric vehicle outlet. The Antelope Valley s local parks include the Marie Kerr Park, Best of the West Softball Complex and Palmdale Amphitheater. The Pelona Vista Park, Palmdale's largest park, offers multiple soccer and baseball fields on 73 acres. Golf courses include the public 9-hole Desert Aire Golf Course, the 18 hole Rancho Vista and the private Antelope Valley Country Club. Also included are the Clear Channel Stadium, Antelope Valley Fairgrounds, Oasis Recreation Center and Dry Town Water Park. LA/Palmdale Regional Airport is located in Lancaster and Palmdale, the heart of Antelope Valley. It is home to two military bases, Edwards Air Force Base and China Lake Naval Reserve, the Mojave Air & Spaceport, and many supporting aerospace companies. It is the world leader in aerospace since the 1950 s. Boeing, Lockheed-Martin, Northrop-Grumman, Rockwell, BAE Systems, and even Lockheed's top secret Skunk Works are all located in Palmdale. Chuck Yeager broke the sound barrier at Edwards Air Force Base in the late 1940's. The B-1 and B-2 bombers were both built in Palmdale, as well as the first Space Shuttle in the 1980's. The X-33, the next generation space shuttle, is currently being developed. Data shown is obtained from sources deemed reliable. It has not been verified and its accuracy is not guaranteed by the source, ACEQ INVESTMENT INC., its representatives and Brokers/Agents. Photo provided without verification, may not represent current conditions. Date and origin of photo are not available. Map is not to scale and locations are approximate. reserves the right to correct any unintended errors

APN Vicinity 3204-010-001&002 50th Street West and Avenue K (According to Assessor Map) Area Los Angeles County Zoning LCA1-10,000 Gross Acres 4.13 Net Acres 3.92 Price per Gross Acre $61,743.34 Price per Net Acre $65,051.02 Total Price $255,000.00 Units 4 Price per Unit $63,750.00 Note: LCA1-10,000 =Los Angeles County, Light Agricultural (10,000 sqft minimum per unit) Features Parcel is flat topography, located in the vicinity of paved Avenue K, which is a west-east paved street, a future 100' wide major thoroughfare road per Los Angeles County General Plan. It is close to six major Single Family Houses construction sites. Many ranch homes and schools are within 1/4 mile. Meanwhile, the parcel is only 1 mile north from the city town center corridor area (vertical mixed use rural commercial/ light industrial and rural residential), which is located between Avenue L to Avenue M2 on 50 th Street West. Antelope Valley College, Elementary School, Palmdale Hospital, Palmdale City Park and Supercenter/Supermarket are within 3 miles. (1 mile to the Quartz Hill Towne Centre, and only 4 miles south-west from The Lancaster Blvd, which holds most major retails and business in the area, 5 miles to the Costco Wholesale and Walmart Supercenter). Water, phone and electricity are available at both Avenue K and 50 th Street West. The area is being promoted for large-scale residential development, and the General Plan has zoned this parcel as Los Angeles County Light Agricultural, 10,000 sqft minimum per unit. Full details are available in the Disclosure Save Report included in this property offering. Located in a bond assessment district for Los Angeles County Regional Park and Open Space. The bonds are used to finance the acquisition and construction of certain public facilities benefiting the properties in the district. Additional Costs Estimates - According to Los Angeles County Assessor Estimated Property Tax (1.25%) $3,187.50 Annual estimate, taxes due in two installments for term of ownership - http://ttc.lacounty.gov Additional costs are estimates only and are subject to change by the county upon reassessment of value and / or change of ownership. Additional cost estimates are to the best of ACEQ's knowledge. Seller is not liable for any discrepancies of additional cost. Data shown is obtained from sources deemed reliable. It has not been verified and its accuracy is not guaranteed by the source, ACEQ INVESTMENT INC., its representatives and Brokers/Agents. Photo provided without verification, may not represent current conditions. Date and origin of photo are not available. Map is not to scale and locations are approximate. ACEQ INVESTMENT IN C. reserves the right to correct any unintended errors

50 th Street West 55 th Street West Avenue K Parcels Avenue K4 Data shown is obtained from sources deemed reliable. It has not been verified and its accuracy is not guaranteed by the source,, its representatives and Brokers/Agents. Photo provided without verification, may not represent current conditions. Date and origin of photo are not available. Map is not to scale and locations are approximate. reserves the right to correct any unintended errors or omissions

Parcels Data shown is obtained from sources deemed reliable. It has not been verified and its accuracy is not guaranteed by the source,, its representatives and Brokers/Agents. Photo provided without verification, may not represent current conditions. Date and origin of photo are not available. Map is not to scale and locations are approximate. reserves the right to correct any unintended errors

Parcels P Data shown is obtained from sources deemed reliable. It has not been verified and its accuracy is not guaranteed by the source,, its representatives and Brokers/Agents. Photo provided without verification, may not represent current conditions. Date and origin of photo are not available. Map is not to scale and locations are approximate. reserves the right to correct any unintended errors

50 th Street West 51 st Street West W Avenue K Parcel One Parcel Two Data shown is obtained from sources deemed reliable. It has not been verified and its accuracy is not guaranteed by the source,, its representatives and Brokers/Agents. Photo provided without verification, may not represent current conditions. Date and origin of photo are not available. Map is not to scale and locations are approximate. reserves the right to correct any unintended errors

50 th Street West W Avenue I Sundown Elementary School Westside Christian Fellowship W Avenue J Parcels Endeavour Middle School W Avenue K Quartz Hill Community Church Data shown is obtained from sources deemed reliable. It has not been verified and its accuracy is not guaranteed by the source,, its representatives and Brokers/Agents. Photo provided without verification, may not represent current conditions. Date and origin of photo are not available. Map is not to scale and locations are approximate. reserves the right to correct any unintended errors

40 th Street West 50 th Street West W Avenue K Parcel 001 Parcel 002 W Avenue K4 Data shown is obtained from sources deemed reliable. It has not been verified and its accuracy is not guaranteed by the source,, its representatives and Brokers/Agents. Photo provided without verification, may not represent current conditions. Date and origin of photo are not available. Map is not to scale and locations are approximate. reserves the right to correct any unintended errors

Looking South-East at the Avenue K to the 50 th Street West Looking at the Property from the Quartz Hill Community Church Los Angeles County Light Agricultural 1-10000 These two parcels can be used to build approximate 15 Single Family Houses, each with a lot of 10,000 SQFT. Looking North-East at the Avenue K and the 50 th Street West Neighboring Community Single Family Houses 7500 sqft / unit Highlights: Flat lots Ha electricity and water Access to main roads & Hwy 14 Quartz Hill school district Antelope Valley College Quartz Hill Towne Centre Adjacent to six developing sites Data shown is obtained from sources deemed reliable. It has not been verified and its accuracy is not guaranteed by the source,, its representatives and Brokers/Agents. Photo provided without verification, may not represent current conditions. Date and origin of photo are not available. Map is not to scale and locations are approximate. reserves the right to correct any unintended errors

Quartz Hill Towne Centre Paved 51 st St. W Paved Avenue K 1.78 Acres 2.35 Acres Total 4.13 Acres Paved 50 th St. W Marketing Analysis: Adjacent parcel has a Pacific Communities New Homes Listing Sign Parcels have potential to build up to 15 units single family houses Surrounding new neighborhoods are selling from the $300K Six residential construction sites are within 2 miles range Data shown is obtained from sources deemed reliable. It has not been verified and its accuracy is not guaranteed by the source,, its representatives and Brokers/Agents. Photo provided without verification, may not represent current conditions. Date and origin of photo are not available. Map is not to scale and locations are approximate. reserves the right to correct any unintended errors

40 th Street West 50 th Street West 60 th Street West Subject Parcel APN: 3204-010-001&002 $61,743.34/Acre W Avenue K APN: 3110-006-022 $367,841.41/Acre APN: 3110-006-020&021 $65,454.55/Acre APN: 3102-004-005 $66,851.66/Acre W Avenue L APN: 3103-025-019 $114,583.33/Acre APN: 3103-017-019 $106,968.71/Acre Data shown is obtained from sources deemed reliable. It has not been verified and its accuracy is not guaranteed by the source,, its representatives and Brokers/Agents. Photo provided without verification, may not represent current conditions. Date and origin of photo are not available. Map is not to scale and locations are approximate. reserves the right to correct any unintended errors

ACEQ Investment Inc. The Comparative Market Analysis (CMA) of this property includes all Greater Antelope Valley Association of Realtor s (GAVAR) MLS Active, Pending, and Sold listings as we find this to be the most reliable source of verifiable data available (comparables collected within a one mile radius). Market Data as of 02/01/2016 APN 3204-010-001&002 Vicinity 50 Street West & Avenue K, Los Angeles County, CA93550 (According to Assessor Map) Area Los Angeles County - Antelope Acres Zoning LCA110000 Gross Acres 4.130 Net Acres 3.920 Price per Gross Acre $61,743.34 Price per Net Acre $65,051.02 Subject Total Price $255,000.00 Unit 4 Price per Unit $63,750.00 $400,000.00 $300,000.00 $200,000.00 $100,000.00 $0.00 Active Price per Acre Active Lot Asking Price Listing # APN Street Ave Size Zoning Total Per Acre Date 1 3110-005-001 50 W L 4.210 LCA110000 $535,000.00 $127,078.38 09/29/14 2 3153-005-082 43 W J 1.060 LRR1-7000 $210,000.00 $198,113.21 01/05/16 3 3103-002-003 50 W L2 0.230 LCR17500 $75,000.00 $326,086.96 08/24/15 4 3103-024-003 42 W L 0.240 LCR3 $89,000.00 $370,833.33 10/05/15 1.435 $227,250.00 $255,527.97 Sold Lot Sale Price Sale # APN Street Ave Size Zoning Total Per Acre Date 1 3110-006-021 45 W K12 0.550 LCR110000 $36,000.00 $65,454.55 04/11/14 2 3110-006-020 45 W K11 0.550 LCR110000 $36,000.00 $65,454.55 04/11/14 3 3102-004-005 52 W L2 0.396 LCR17500 $26,500.00 $66,851.66 08/17/15 4 3103-012-027 47 W M 0.210 LCR17500 $22,000.00 $104,761.90 04/03/15 5 3103-017-019 45 W L4 0.337 LCR17500 $36,000.00 $106,968.71 08/08/14 6 3103-025-019 40 W L2 0.480 LCR17500 $55,000.00 $114,583.33 04/04/14 8 3110-006-022 45 W L 4.540 LCR110000 $1,670,000.00 $367,841.41 03/23/15 1.009 $268,785.71 $127,416.59 Notes LC Los Angeles County A1-10000 - Light Agricultural (10000 sq ft minimum) R1-7500 - Single Family Residential (7500 sq ft minimum) R1-10000 - Single Family Residential (10000 sq ft minimum) R3 - Limited Multiple Residence LR City of Lancaster R1-7000 - Single Family Residential (7000 sq ft minimum) Zoning designations shown are obtained from the following sources: Lancaster Zoning Map, adopted 10/13/98, Ordinance No. 743.1; updated through 2/13/04, Ordinance No. 825; supplemented with Fox Field Specific Plan information taken from the Lancaster General Plan Map, adopted 10/28/97, Resolution 97-102; updated through Resolution No. 03-468. City of Palmdale Zoning map, adopted 12/14/94; updated 9/13/04, Ordinance #1248. Los Angeles County General Plan: A. V. Area Plan, adopted 12/4/86; updated through 7/27/99 (LP93-021); printed 2/7/02. First American Real Estate Solutions: May 2010 database of property characteristics, ownership, sale, and tax database via Win2Data.

ACEQ Investment, Inc. Important Disclosure: Data shown is obtained from sources deemed reliable such as, the local Association of Realtors and its Multiple Listing Service, the City and County official records, Chamber of Commerce, Greater Antelope Valley Economic Alliance and numerous local real estate and general publications. All data including lot sizes, boundaries, land-use and zoning data, availability of utilities, access and easements, market data and prices, sales information and maps are un-audited and have not been verified. The information is deemed reliable but its accuracy is not verified or guaranteed by the sources mentioned above or ACEQ Investment Inc., its representatives, employees and Brokers or Agents. The data may or may not contain all market activity in the area. The information is provided only to assist interested parties in their consideration of a long term speculative purchase to meet their needs. However, verification of all opinions, facts, data and information is advised and acquisition of additional information deemed necessary is recommended, as it would be with any important financial decision. Data is subject to change, revision and/or correction without notice. Any and/or all properties are subject to prior sale, price change or withdrawal without notice. In case of prior sale, substitute property to be designated for approval by parties within two business days. ACEQ Investment, Inc. 20065 Stevens Creek Blvd., Bldg. C, Ste. 1C Cupertino, CA95014 Tel: 408-703-5360 Fax: 408-517-0422