Lake Anna: Natural Reflections

January 2008Spotsylvania, VirginiaUSA

Natural Reflections Overview $120 Million Project

5 Star Hotel/ Condominium with Lakefront views

Self Contained Infrastructure

Eco-Friendly Design

Luxury Retreat Environment

Unique Opportunity

Experienced Development Team

Natural Reflections Development

Multi-phase Development Project

Strong Operational Partnership (Marriott)

Experienced Development Teaming

Supported by Spotsylvania County

Close Proximity to New Golf Course Community

Natural Reflections DevelopmentLocation Destination

Natural Reflections DevelopmentAerial Site View

Natural Reflections DevelopmentProject Highlights

200 Key Hotel/ Condominium

Conference Center

Fine Dining Restaurant

Entertainment Lounges (specialty VIP lounges)

5 Star Spa

Casual Dining

Sports Bar

Natural Reflections Development

Phase I: Facility construction w/ 120 guest rooms Hotel Amenities Spa Fine Dining Informal dining & sports bar

Phase II: 80 guest rooms

Schedule (Conceptual)

Natural Reflections DevelopmentMarket Study

PKF Marketing Consultant

Fourth Largest Hotel/ Condominium in Virginia

$750 Million market we will capture 5% of the market share

$3.1 Million per month

Natural Reflections Development

Income: $180,120,000 Advance sales price:

$1,501,000 Sales: $25,216,800 Advance sales/Marketing

cost: $210,140/$17,511.67

Project Financing

Natural Reflections Development

Developer Fee: $27,018,000;15%

Land Purchase: $5,592,400

Hard Cost: $90,000,000 Average Unit Hard Cost

$750,000 Soft Cost: $18,012,000;

10%

Project Financing (Continued)

Natural Reflections Development

Contingency: $14,280,800; 8%

Cash requirements Start-up: $5,592,400 Investment equity:

$26,179,140 ROI: 28.35% = $27,018,000

divided by $31,771,540

Project Financing (Continued)

Natural Reflections Development

Provide temporary staffing in all areas and assist in the hiring of permanent management staff

Training is two phased: At their national training facility On-the-job training at the Lake Anna

Hotel

Hotel Management Plan (Marriott)

Natural Reflections Development

Located in Spotsylvania County, Virginia Multi-phase development Hotel/ Condominium

Local Community Support Key Players

FoxCor,LLC Marriott L.W. Associates, LLC PKF Marketing Consultant Rinker Land Planning Campbell, Veltri &Clark Accounting Firm

Summary

Natural Reflections Development

Projected Project Schedule Phase I: 120 room facility Phase II: 80 rooms

Market Study $750 million market we will capture 5%

Projected Financing Investment opportunities

Summary Continued

Natural Reflections Development

Questions