Offered by

Vince ReynoldsSenior Vice President LIC #01173989 858.369.3082 | vincer@kiddermathews.com

kiddermathews.com

OFFERING MEMORANDUM

Coachella, CA

Table of Contents1. Investment Summary

• The Offering

2. Property Description

• Property Summary

• Site Plan

• Site Photos

3. Lot Sale Comps

• Recent Lot Sale Comps

4. Market Overviews

• Coachella Valley Market Overview

• Palm Springs Market Overview 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 Kidder Mathews and should not be made available to any other person or entity without the written consent of Kidder Mathews.

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. Kidder Mathews has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, 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, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of

any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Kidder Mathews has not verified, and will not verify, any of the information contained herein, nor has Kidder Mathews 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.

This information has been secured from sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Recipient of this report must verify the information and bears all risk for any inaccuracies.

Disclaimer

Investment Summary

The OfferingThe Vineyards is a luxury RV resort development originally entitled for 252 spaces with over $35,000,000 originally invested. Currently in place are 69 luxury casitas each individually owned with an existing HOA essentially removing day-to-day operations from the owner. The site has resort style amenities with an 8,000 sq. ft. clubhouse, 2 tennis courts, 2 pools, water features and green belts. There are 46 lots ready for construction with utilities stubbed to the sites. These 46 lots can be sold or rented and allow both 5th Wheels and Class A Motor coaches.

PROPERTY OVERVIEW

3 Casitas Included on Class A Lots

Phase 1 - Entitled for 69 Casitas - Completed - SOLD OUT

Phase 2 - 46 Lots - Shovel Ready - FOR SALE OR LEASE

Phase 3 - 136 Lots - Entitled

Championship 9 Hole Golf Course on ± 60 Acres

Golf Course Completely Independent on Separate Parcel -or- Future RV Development

Clubhouse, Fitness Center, Tennis Courts, Two Pools

Easy Access from I-10 for Shopping, Dining, and 2 Casinos within a mile

Existing HOA with CC&R’s for the “Class A” Motorcoach Lots

Property Description

THE NEW VINEYARDSCoachella, CA

Per Unit Total

List Price $4,600,000.00

3 Casitas and Lots $150,000.00 $450,000.00

46 Entitled Lots Ready for Construction (Will Accomodate 5th Wheels)

$20,000.00 $920,000.00

113 Entitled Lots for Future Development

$14,000.00 $1,582,000.00

33 Golf Course Frontage Lots for Future Development

$50,000.00 $1,650,000.00

Championship 9 Hole Golf Course on ± 60 Acres -or- Future RV Development

Included

Golf Course Fixtures Included

66 Casita Lots Sold

Site Plan

Property Description

Lot Sales Comps

Recent Lot Sales Comps

Arrowhead Ave

Sonoma Creek Rd

Fetzer Ln

Duckhorn Dr

Masson Dr

SITE ADDRESS SALE DATE LIST PRICE

86177 Sonoma Creek Rd 03/28/2017 $125,000

86116 Sonoma Creek Rd 03/15/2017 $100,000

86124 Sonoma Creek Rd 01/25/2017 $97,000

86117 Sonoma Creek Rd 12/02/2016 $135,000

44458 Duckhorn Dr 04/13/2016 $150,000

44462 Duckhorn Dr 04/13/2016 $150,000

86132 Sonoma Creek Rd 04/13/2016 $175,000

86124 Sonoma Creek Rd 04/08/2016 $180,000

Coachella ValleyThe Coachella Valley is one of the fastest-growing areas in the country, due in part to its location in Riverside County, California, and to real estate booms from the 1970’s (peaking in the 1990’s) to the 2000’s. State projections estimate that the valley’s population will pass 600,000 by the year 2020 and 1.1 million by 2066.[13] Demographers believe the total population already surpassed the 500,000 mark, plus 100,000 temporary seasonal residents known as “snowbirds” arriving to stay during the winter months (from the end of October to the end of April). With more than 350 days of sunshine per year and the warmest winters in the western US – though summer can be quite hot – recreational hiking and horseback riding are popular in the many canyons in the mountains that surround the valley. The Coachella Valley is subdivided into portions: the West Valley made of Palm Springs, Cathedral City and sometimes Cabazon, and formerly called Down Valley became Mid Valley for Rancho Mirage, Palm

Desert and Indian Wells; and later East Valley for Indio, Coachella and unincorporated towns farther down, but now called South Valley which includes La Quinta, and nowadays, North Valley for Desert Hot Springs and unincorporated areas surrounding them. Roughly 125 golf courses blanket the area, making it one of the world’s premier golf destinations and is the most popular golf vacation destination in California. The Merrill Lynch Skins Game was held in La Quinta each Thanksgiving and drew some of the biggest names in golf. The PGA has a major presence in La Quinta as well with the PGA WEST golf and residential complex. One of the host courses of the aforementioned Bob Hope Chrysler Classic, a PGA WEST fairway represents the area in Soarin’ Over California, an IMAX-based attraction at Disney California Adventure Park theme park.

Market Overview

SUBJECT PROPERTY10PALM

SPRINGS

INDIO

COACHELLA

ANZA-BORREGO DESERT STATE PARK

JOSHUA TREE NATIONAL PARK

DESERT HEIGHTS

YUCCA VALLEY

Palm Springs Snowbirds

Market Overview

Todays’ Palm Springs, and the seven other desert resort cities of the Coachella Valley, continue to lure “snowbirds” south, year after year, for dry, sunny days of golf, tennis, and lazing around the 30,000 swimming pools in the valley. A lively calendar of annual cultural events, fairs, golf and tennis competitions, and festivals, from mid-October to mid-May, invite winter vacationers to come again. No other resort destination offers as many top-rated golf courses as the Coachella Valley, including the PGA West Jack Nicklaus Resort Course, and four Pete Dye-designed layouts: the PGA West TPC Stadium Golf Course, the Mountain, the Dunes and the private Citrus course. The PGA Tour considers some of the holes at La Quinta to be among the most difficult in the country and vacationing golfers consider them the ultimate test of their mettle. Annual golf tournaments attract thousands of snowbirds during the high season of January, February and March, when desert weather is at its clear, dry best. Temperatures are in the 70’s and 80’s when the annual Bob Hope Chrysler Classic is held.

In early March, thousands of tennis players and fans descend on Indian Wells for the ATP-WTA Tennis Masters. In late March than 100 women pros compete in the annual Nabisco Dinah Shore tournament at the Mission Hills Country Club in Rancho Mirage.

A newer snowbird attraction are desert safaris by four-wheel drive vehicles. On a desert safari, 4x4’s trek into the Santa Rosa Mountains, to see ancient Indian petroglyphs, waterfalls and palm groves in stream canyons, and sometimes Big Horn sheep. Spring is the best time to venture out on horseback or 4WD, when waterfalls are at their peak and wildflowers run rampant across the desert floor. A bird’s eye view is even better, any time of year.

Vince Reynolds Senior Vice President858.369.3082 vincer@kiddermathews.comLIC #01173989

Kidder Mathews12230 El Camino Real, 4th Floor San Diego, CA 92130

kiddermathews.com

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