SVN | NORTHCO REAL ESTATE SERVICES | 5353 WAYZATA BLVD., SUITE 400, MINNEAPOLIS, MN 55416 OFFERING MEMORANDUM

CLAMSHELL BEACH- COTTAGES ONWHITEFISH35197 S CLAMSHELL DRIVEPEQUOT LAKES, MN 56472

Frank Jermusek, JDPresident / Managing Director952.820.1615frank.jermusek@svn.com

Cameron Peterson, CCIMSenior Advisor952.820.1688cameron.peterson@svn.com

Edward RuppSenior Advisor952.820.1634edward.rupp@svn.com

OFFERING SUMMARY

Resort Property Sale Price: $2,950,000

Development Property Sale Price: $1,456,000

Lot Size: 14.7 Acres

Building Size (SF): 2,592 (lodge),

952 (spa/pool

building)

Zoning: Waterfront

Commercial

SVN | Northco is pleased to present for sale Clamshell Beach - The Cottages on Whitefish in Pequot Lakes, MN("Property"). The Property is comprised of two business opportunities with great revenue streams - a Resort Propertyand a Development Property. The Property is a year-round operation that is located in the popular Brainerd Lakes resortarea in Minnesota. The Resort Property consists of a resort business, all shares in existing unsold units, the owner'sresidence, maintenance-boat building, dock system, and all FF&E. The Development Property is fully approved andplatted for 16 development lots.

PROPERTY OVERVIEW

PROPERTY HIGHLIGHTS

• 10.67% cap rate year-round resort operation

• There are currently eighteen cottages in the rental pool (two units per cottage) and there is an opportunity to add moreunits with the Development Property

• Amenities include a lodge, a sand beach, two heated outdoor pools, tennis and basketball courts, and pontoon andfishing boat rentals

• The immediate area includes championship golf at the top-rated Whitefish Golf Club (located across Highway 16 fromthe Property), world-class mountain biking on the Cuyuna Lakes Mountain Bike Trails (located within a half-hour of theresort), dining, shopping, and more

Property Summary

CLAMSHELL BEACH - COTTAGES ON WHITEFISH | 35197 S CLAMSHELL DRIVE PEQUOT LAKES, MN 56472 SVN | Northco Real Estate Services | Page 2The information presented here is deemed to be accurate, but it has not been independently verified. We make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated.

CLAMSHELL BEACH - COTTAGES ON WHITEFISH | 35197 S CLAMSHELL DRIVE PEQUOT LAKES, MN 56472 SVN | Northco Real Estate Services | Page 3The information presented here is deemed to be accurate, but it has not been independently verified. We make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated.

SALE HIGHLIGHTS

• 10.67% cap rate year-round resort operation

• The Development Property sixteen fully platted and approved lots available

separately for $1,456,000.

• Included in the resort sale is the resort business, all shares in existing unsold

units (90), a five bedroom, four and a half bath cabin that could be used for the

owner's residence, maintenance-boat building, dock system, and all FF&E

• There are currently 18 cottages in the rental pool and there is an opportunity to

add more units with the Development Property

• Amenities include a lodge, a sand beach, two heated outdoor pools, tennis and

basketball courts, and pontoon and fishing boat rentals

• Includes approximately 60 ten-foot sections of aluminum docks with lifetime

plastic decking

• The immediate area includes championship golf at the top-rated Whitefish Golf

Club (located across Highway 16 from the Property), world-class mountain

biking on the Cuyuna Lakes Mountain Bike Trails (located within a half-hour of

the resort), dining, shopping, and more

Sale Highlights

CLAMSHELL BEACH - COTTAGES ON WHITEFISH | 35197 S CLAMSHELL DRIVE PEQUOT LAKES, MN 56472 SVN | Northco Real Estate Services | Page 4The information presented here is deemed to be accurate, but it has not been independently verified. We make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated.

Resort Map

CLAMSHELL BEACH - COTTAGES ON WHITEFISH | 35197 S CLAMSHELL DRIVE PEQUOT LAKES, MN 56472 SVN | Northco Real Estate Services | Page 5The information presented here is deemed to be accurate, but it has not been independently verified. We make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated.

The Property is located on Clamshell Lake in the popular Brainerd Lakes resort area in central Minnesota.The Property is roughly equidistant between the towns of Crosslake, MN and Pequot Lakes, MN. TheProperty is located only 2.5 hours from Minneapolis.

The Property is located across County Road 16 from the Whitefish Golf Club, a family-friendly public golfcourse that offers a unique setting and challenging course.

The Whitefish Chain of Lakes offers over 14,000 acres of water, over 200 miles of shoreline, and 14 islandsto explore. The chain of lakes features excellent fishing, and there are numerous restaurants on the chainof lakes that guests can canoe, paddleboat, kayak, or paddleboard to.

LOCATION OVERVIEW

Location Overview

CLAMSHELL BEACH - COTTAGES ON WHITEFISH | 35197 S CLAMSHELL DRIVE PEQUOT LAKES, MN 56472 SVN | Northco Real Estate Services | Page 6The information presented here is deemed to be accurate, but it has not been independently verified. We make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated.

Regional Map

CLAMSHELL BEACH - COTTAGES ON WHITEFISH | 35197 S CLAMSHELL DRIVE PEQUOT LAKES, MN 56472 SVN | Northco Real Estate Services | Page 7The information presented here is deemed to be accurate, but it has not been independently verified. We make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated.

Location Map

CLAMSHELL BEACH - COTTAGES ON WHITEFISH | 35197 S CLAMSHELL DRIVE PEQUOT LAKES, MN 56472 SVN | Northco Real Estate Services | Page 8The information presented here is deemed to be accurate, but it has not been independently verified. We make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated.

Area Map

CLAMSHELL BEACH - COTTAGES ON WHITEFISH | 35197 S CLAMSHELL DRIVE PEQUOT LAKES, MN 56472 SVN | Northco Real Estate Services | Page 9The information presented here is deemed to be accurate, but it has not been independently verified. We make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated.

POPULATION 1 MILE 10 MILES 30 MILES

Total population 65 12,534 104,427

Median age 54.1 46.8 42.5

Median age (Male) 52.3 45.3 41.6

Median age (Female) 55.0 48.0 43.7

HOUSEHOLDS & INCOME 1 MILE 10 MILES 30 MILES

Total households 30 5,705 46,000

# of persons per HH 2.2 2.2 2.3

Average HH income $77,051 $61,943 $57,109

Average house value $298,302 $243,425

* Demographic data derived from 2010 US Census

Demographics Report