MT. NEBO MOBILE HOME PARK

OFFERING MEMORANDUM MT. NEBO MOBILE HOME PARK 122 SPACES ROSEBURG, OREGON COLLIERS INTERNATIONAL P. 1

OFFERING MEMORANDUM Table of Contents INVESTMENT SUMMARY PAGE 3 PROPERTY INFORMATION PAGE 6 MARKET OVERVIEW PAGE 10 COMPARABLES PAGE 13 FINANCIAL OVERVIEW PAGE 18 Exclusive Advisors This Offering Memorandum contains select information pertaining to the business and affairs of the Property at 2071 N.E. Stephens Street, Roseburg, Oregon. It has been prepared by Colliers International. This Offering Memorandum may not be allinclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. For further information regarding the purchase and sale of this asset, to schedule a tour, or to submit a bid, please contact the following Colliers International professionals: TRANSACTION GUIDELINES PAGE 20 Skip Rotticci CCIM Associate Vice President Multifamily DIRECT +1 503 499 0062 EMAIL skip.rotticci@colliers.com Beth DuPont MBA Associate Vice President Multifamily DIRECT +1 503 499 0091 EMAIL beth.dupont@colliers.com Alexander Cheng Associate Multifamily DIRECT +1 503 499 0075 EMAIL alexander.cheng@colliers.com 851 S.W. Sixth Ave., Suite 1200 Portland, Oregon 97204 503.223.3123 COLLIERS INTERNATIONAL P. 2

> Investment Summary

N.E. STEPHENS ST. INVESTMENT HIGHLIGHTS Investment Opportunity Mt. Nebo Mobile Home Park is a 122 space family park in Roseburg, Oregon (3 hours south of Portland and 1 hour south of Eugene on Interstate 5). The park is located on Northeast Stephens Street, a major north-south thoroughfare and is in close proximity to the Roseburg Municipal Airport, retail services, restaurants, and schools. The site includes 92 mobile home spaces, 30 RV hook up sites, RV storage, and a laundry/rest room facilities. The park follows a ladder style layout with main roads running east/west and lanes running north/south. Utilities to the park are provided by the city. Professional management is in place and willing to stay on for new ownership. NORTH MT. NEBO MOBILE HOME PARK JOSEPH LANE MIDDLE SCHOOL N.E. ALAMEDA AVENUE COLLIERS INTERNATIONAL P. 4

INVESTMENT HIGHLIGHTS Property Details NAME: Mt. Nebo Mobile Home Park ADDRESS: 2071 N.E. Stephens Street, Roseburg, Oregon PARCEL NUMBER(S): R44943, R44908, R44880, R44887 YEAR BUILT: 1952 SPACES: 122: 92 mobile home spaces / 30 RV spaces LAND AREA: 381,585 SF / 8.76 acres UTILITIES: Water and sewer provided by the City of Roseburg STREET TYPE: Average/paved ZONING: Medium Density Residential AGE RESTRICTIONS: None COMMUNITY AMENITIES: RV hook up sites and storage, laundry facilities, restrooms OCCUPANCY: 86%: 93% mobile home / 63% RV PARK-OWNED HOMES: 4 OFFERING PRICE: $3,375,000 PRICE PER SPACE: $27,664 CAP RATE: 7.60% COLLIERS INTERNATIONAL P. 5

> Property Information

PROPERTY INFORMATION Mt. Nebo Mobile Home Park Mt. Nebo Mobile Home Park is located in Roseburg, Oregon along Interstate 5 just south of the Willamette Valley. Roseburg has historically been considered a mill town whose primary employment consisted of lumber, plywood, paper mills, log exports, and shipping. The project is well located on NE Stephens Street near the Roseburg Airport. Job growth has been relatively strong as the timber industry, and interest in forest products manufacturing, recycling, and bio mass production recovers. The property is well located and has a high occupancy with no signs of exceptional turnover. No new mobile home park developments of any scale are proposed for Roseburg at this time. Community features: 92 mobile home spaces 30 RV spaces Utilities served by City of Roseburg Minimal park-owned homes Professional management in place, willing to stay on Laundry facilities Restroom facilities Additional RV hook up sites and storage Near several grocery stores Proximity to Interstate 5 and Joseph Lane Middle School COLLIERS INTERNATIONAL P. 7

PROPERTY INFORMATION Park Map M04 O-12 O-11 O-10 RESTROOMS O-13 O-15 O-16 O-17 & SHOWERS M-05 M-06 M-07 M-08 M-09 M-10 M-11 M-12 M-13 O-09 VINE STREET STEPHENS STREET O-00 O-01 O-02 O-03 O-04 A-01 A-02 A-03 A-04 A-05 VISITOR PARKING OFFICE & MANAGER O-08 O-07 O-06 O-05 L-04 L-05 A-10 A-09 A-08 L-06 L-07 L-08 L-09 L-10 L-11 L-12 L-13 L-14 L-15 L-16 L-17 C-09 C-08 C-07 C-06 C-05 C-04 C-03 C-02 C-01 A-11 A-12 A-13 A-14 A-15 A-16 A-17 G-01 G-02 G-03 H-01 H-02 H-03 A-18 A-19 A-20 A-21 A-22 A-23 A-24 I-01 I-02 I-03 J-01 J-02 J-03 K-01 K-02 REC. ROOM, RESTROOMS, SHOWERS & LAUNDRY MAINTENANCE G-04 H-04 I-04 J-04 K-03 D-07 D-06 D-05 D-04 F-09 F-08 F-07 F-06 F-05 D-03 D-02 D-01 F-04 F-03 F-02 F-01 F-00 F-11 F-10 G-05 H-05 I-05 F-12 F-13 F-14 F-16 J-05 F-17 K-04 F-18 COLLIERS INTERNATIONAL P. 8

N.E. STEPHENS ST. PROPERTY INFORMATION MERCY MEDICAL CENTER NORTH ROSEBURG AIRPORT MT. NEBO MOBILE HOME PARK JOSEPH LANE MIDDLE SCHOOL MAP N.E. ALAMEDA AVENUE VA ROSEBURG COLLIERS INTERNATIONAL P. 9

> Market Overview

MARKET OVERVIEW Local Economy & Employment Roseburg, Oregon is located in the celebrated Umpqua River Valley in Southern Oregon. The most populous city in Douglas County, Roseburg is a short drive to the Oregon Coast, nationally renowned Crater Lake, and features world-class fly fishing, rafting and kayaking on the Umpqua River. Traditionally a timber town, Roseburg and the surrounding area is quickly becoming known as an up and coming wine and recreational destination. With established call centers in the area, the region will continue to be an attractive place for call centers due to trained and available workforce. The largest employer, Roseburg Forest Products, is one of the largest privately owned wood products companies in the U.S. established in 1936. Products include engineered wood, lumber, softwood plywood, composite and hardwood panels. There is renewed optimism that the timber industry will continue to rebound with the economy in part to federal voting on increased timber harvests set to be voted on in 2015. The Roseburg VA Health Care System recently underwent $55 million in renovations and construction upgrades including a new dental clinic as well as an Alzheimer s unit. NORTH REGIONAL TOP EMPLOYERS EMPLOYER NAME EMPLOYEES INDUSTRY Roseburg Forest Products 1,757 Forestry Mercy Healthcare Inc. 1,139 Healthcare TMS Call Center 349 Call Center Umpqua Bank 310 Finance First Call Resolution 300 Call Center MT. NEBO MOBILE HOME PARK The Next Napa Valley - Sunset Magazine One of the world s 25 most epic mountain bike trails - International Mountain Bicycling Association The most celebrated water in all of steelhead fly fishing - The Steelhead River Journal COLLIERS INTERNATIONAL P. 11

MARKET OVERVIEW Local Demographics DISTANCE TO/FROM MT. NEBO MOBILE HOME PARK 1 MILE 3 MILE 5 MILE 2014 Total Population: 5,288 28,345 33,360 2019 Population: 5,219 28,420 33,525 Average Age: 39.0 43.1 44.5 HOUSEHOLDS 2014 Total Households: 2,463 12,364 14,484 2019 Total Households: 2,439 12,465 14,635 2014 Median Household Income: $35,388 $45,845 $47,221 MT. NEBO MOBILE HOME PARK 2014 Average Household Size: 2.07 2.21 2.23 2019 Median Household Income: $40,304 $52,176 $53,467 2019 Average Household Size: 2.06 2.20 2.22 HOUSING 2014 Median Home Value: $154,268 $190,206 $198,032 2014 Renter Occupied: 54.2% 44.4% 41.1% COLLIERS INTERNATIONAL P. 12

> Comparables

RENT & SALE COMPARABLES Sales Comparables PROPERTY NAME THE BOULDERS WELCOME WEST MOBILE HOME PARK CORVALLIS MOBILE HOME PARK ADDRESS 1577 Fern Ridge Road 2155 31st Street 200-310 SW 53rd Street CITY, STATE Stayton, Oregon Springfield, Oregon Corvallis, Oregon NO. SPACES/SITES 44 85 104 YEAR BUILT 1990 1978 N/A SALE PRICE $1,850,000 $4,000,000 $5,050,000 PRICE/SITE $42,045 $47,059 $48,558 CAP RATE 6.50% N/A 6.96% SALE DATE 10/20/2014 9/24/2014 8/8/2014 COLLIERS INTERNATIONAL P. 14

RENT & SALE COMPARABLES Sales Comparables PROPERTY NAME REMINGTON ARMS COLUMBUS GREENS SUBLIMITY MOBILE VILLAGE ADDRESS 1515 NW Fir Avenue 5050 Columbus Street SE 340 NE Crest Street CITY, STATE Redmond, Oregon Albany, Oregon Sublimity, Oregon NO. SPACES/SITES 85 268 99 YEAR BUILT 1981 1970 1965 SALE PRICE $3,460,000 $15,000,000 $4,000,000 PRICE/SITE $40,706 $55,970 $40,404 CAP RATE 6.01% 5.80% 6.90% SALE DATE 4/14/2014 9/5/2013 6/28/2013 COLLIERS INTERNATIONAL P. 15

RENT & SALE COMPARABLES Sales Comparables PROPERTY NAME HAZEL GLEN COURT COUNTRY MANOR ADDRESS 1220 Monmouth Street 4475 Daisy Street CITY, STATE Independence, Oregon Springfield, Oregon NO. SPACES/SITES 60 134 YEAR BUILT 1970 1960 SALE PRICE $3,100,000 $5,700,000 PRICE/SITE $51,667 $42,537 CAP RATE 7.00% N/A SALE DATE 4/29/2013 10/29/2012 COLLIERS INTERNATIONAL P. 16

RENT & SALE COMPARABLES Other Communities for Sale in Roseburg PROPERTY NAME WESTERN STAR MOBILE ESTATES ADDRESS 101 Lad Lane CITY, STATE Roseburg, Oregon NO. SPACES 117: 103 mobile home spaces / 14 RV spaces YEAR BUILT 1965 LAND AREA 536,659 SF/ 12.32 Acres SALE PRICE $4,350,000 PRICE/SPACE $37,179 CAP RATE 7.52% COLLIERS INTERNATIONAL P. 17

> Financial Overview

FINANCIAL OVERVIEW Annual Proforma as Stabilized PROJECTED INCOME MONTHLY ANNUAL Permanent Space Rents $37,146 $445,751 Temporary Space Rents $8,961 $107,532 Submetered Utilities $6,400 $76,800 Storage Rent $328 $3,936 Subtotal $52,835 $634,019 Vacancy and Credit Loss- Permanent (3%) -$2,642 -$31,701 Vacancy and Credit Loss- Temporary (35%) -$3,136 -$37,636 Late Fees $400 $4,800 Screening Fee Income $100 $1,200 Gross Income $47,557 $570,682 Operating Expense -$26,185 -$314,220 Net Operating Income $21,372 $256,462 ANNUAL NET OPERATING INCOME $256,462 Permanent Space Rent Temporary Space Rent SPACES MO. RENT 2014 2015 92 $392 $36,064 $37,146 30 $290 $8,700 $8,961 TOTAL $44,764 $46,107 ESTIMATED PROFORMA EXPENSES MONTHLY ANNUAL % Management fees and Expenses $4,916 $58,992 9% Payroll Taxes $205 $2,460 0% Insurance & Health Benefits $15 $180 0% Screening Fees & Tenat Legal $425 $5,100 1% Professional Services $100 $1,200 0% Office Supplies & Postage $250 $3,000 0% Tenant Services $65 $780 0% Marketing & Advertising $37 $444 0% Repairs & Maintenance $565 $6,780 1% Maintenance Supplies $100 $1,200 0% Licenses & Permits $55 $660 0% Dues & Subscriptions $110 $1,320 0% Collections $200 $2,400 0% Landscaping $35 $420 0% Travel $125 $1,500 0% Utilites (Common Area Electricity, Water/Sewer, Trash) Gas $65 $780 0% Electricity $6,100 $73,200 12% Garbage/Recycling $797 $9,564 2% Water/Sewer $7,350 $88,200 14% Storm Sewer Drainage $550 $6,600 1% Telephone/Internet $210 $2,520 0% Property Taxes $3,500 $42,000 7% Insurance $410 $4,920 1% TOTAL EXPENSES $26,185 $314,220 50% COLLIERS INTERNATIONAL P. 19

> Transaction Guidelines

TRANSACTION GUIDELINES Offering Procedure The offering of Mt. Nebo Mobile Home Park is being conducted exclusively by Colliers International. All questions and inquiries should be directed to the Colliers representatives listed in this memorandum. Colliers will be available to assist prospective investors with their review of the offering. On-site inspections of the property and tours of the market area can be arranged directly with Colliers. Offers should include, at a minimum, the following: The purchase price and closing date; The source of capital, both equity and debt, for the transaction; The amount of earnest money deposit; A detailed schedule of the due diligence and requisite approval process; and A description of assumptions utilized for the offer. Please address your offers to the brokers listed below. SKIP ROTTICCI CCIM Associate Vice President skip.rotticci@colliers.com +1 503 499 0062 BETH DUPONT MBA Associate Vice President beth.dupont@colliers.com +1 503 499 0091 851 S.W. Sixth Ave., Suite 1200 Portland, Oregon 97204 503.223.3123 ALEXANDER CHENG Associate alexander.cheng@colliers.com +1 503 499 0075 DAVID KOTANSKY Managing Director david.kotansky@colliers.com +1 503 233 3123 COLLIERS INTERNATIONAL P. 21

TRANSACTION GUIDELINES CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of the Property at 2071 N.E. Stephens Street, Roseburg, Oregon. It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained by Colliers International from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum from Colliers, you agree: 1) The Offering Memorandum and its contents are confidential; 2) You will hold it and treat it in the strictest of confidence; and 3) You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum. COLLIERS INTERNATIONAL P. 22

851 S.W. Sixth Ave., Suite 1200 Portland, Oregon 97204 503.223.3123 Skip Rotticci CCIM Associate Vice President DIRECT +1 503 499 0062 EMAIL skip.rotticci@colliers.com Beth DuPont MBA Associate Vice President DIRECT +1 503 499 0091 EMAIL beth.dupont@colliers.com Alexander Cheng Associate DIRECT +1 503 499 0075 EMAIL alexander.cheng@colliers.com