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ASG Development Advisors presents the opportunity to purchase 161 nearly-finished lots and 4 model homes in the Winchester area of unincorporated Riverside County. This rare opportunity to purchase nearly-finished lots within a “B” sub-market of the Inland Empire will allow the buyer to achieve dozens of home closings during the 2016 calendar year due to the project’s eligibility for USDA no down payment 100% financing. The USDA financing, combined with the project's low HOA and lack of a CFD, means that buyers who could not otherwise qualify for a FHA loan or come up with a down payment will be able to finance 100% of their home while maintaining a manageable total monthly payment. In addition to this beneficial financing, the “feel” of the community is outstanding. It lies at the base of two local mountains which provide scenic views, has a completed one-acre park at the entrance, and contains 52 previously-constructed and sold homes which have been very well maintained by their owners. The project’s residents will also benefit from quicker-than-expected access to the area’s major freeways. The project is only a 14-minute drive to Interstate-215 via the six-lane divided Domenigoni Parkway, or 28 minutes to Interstate-15 in Lake Elsinore via Domenigoni Parkway and Railroad Canyon Road. For residents who commute to the south, Interstate-15 in Temecula can be reached in 25 minutes via the newly-widened Winchester Road.

8.4 miles to I-215 14 min. drive time

16 miles to I-15 25 min. drive time

8.3 miles I-15 to I-215 14 min. drive time

Menifee

French Valley

9.4 miles to French Valley 16 min. drive time

PROPERTY AERIAL

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STETSON AVESTETSON AVE

WINCHESTER TRAILS PAGE 6

TRACT NO. 30351 SUMMARY

Flood Control Channel

161 Nearly-Finished Lots

4 Model Homes

To be conveyed to Riverside County Flood Control District upon the completion of a short punch‐list which was recently bid‐out at $73,600. Upon conveyance, Flood Control will take over maintenance of the channel and process a LOMR with FEMA.

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channel and process a LOMR with FEMA.

Park SiteThe previous developer fulfilled the project’s park obligation through the construction of a one‐acre public park.  The park is completed and has been

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accepted for maintenance by Valley Wide Recreation & Park District.  The remaining four acres are to be developed with additional park space by Valley Wide at a later date.   

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52 Previously Sold Homes (NAP)

STETSON AVESTETSON AVE

WINCHESTER TRAILS PAGE 7

NWC of Winchester Road and Stetson Avenue Riverside County, CA 92545

161 nearly-finished lots

146 lots @ 7,215 SF min. (65’x111’); 8,640 SF avg. 15 lots @ 20,000 SF min.; 20,595 avg.

4 model homes • Plan 2: 1,547 SF (3BD – 2BA – 1-story) • Plan 3: 2,125 SF (3BD – 3BA – Bonus – 2-story) • Plan 4: 2,216 SF (4BD – 3BA – 2-story) • Plan 5: 2,153 SF (4BD – 3BA – Bonus – 2-story)

$46.31 at build-out

None

R-1 – One Family Dwellings

Hemet Unified School District • Winchester Elementary School (K-5)

• API: 736 • Rancho Viejo Middle School (6-8)

• API: 736 • Tahquitz High School

• API: 694

• Recorded Tract Map No. 30351 • TUMF Agreement, EMWD Water and Sewer Facilities and Service Agreement, Flood Control

Agreement, Park Agreement

The site consists of 161 nearly-finished lots, 4 model homes, a completed 1-acre park and 1.15-acre water quality basin maintained by Valley Wide Recreation & Park District, a vacant 4-acre parcel to be developed by Valley Wide, and a storm channel to be dedicated to Riverside County Flood Control.

All final engineering has been completed and the final map is recorded.

The project features a completed 1-acre public park with multiple large open turf play areas, tot-lot, gazebo shade structure, basketball court, and multiple picnic tables with barbeques. Adjacent to the existing park is a vacant 4-acre parcel to be developed with additional parks by Valley Wide Recreation & Park District. Valley Wide is currently maintaining the existing 1-acre park and will also maintain the future 4-acre park.

Contact ASG for details.

Front: Rear: Side (interior): Side (street-side): Encroachments:

20’ 10’ 5’ 10’ • Outside stairways or landing places, if unroofed & unenclosed, may extend 3’ into the side yard and/or 5’ into the rear year • Cornices, canopies, and other similar architectural features not providing additional floor space within the building may extend 1’ into a required yard. • Eaves may extend 3’ into a required yard • One pergola or one covered but unenclosed passenger landing may extend into either side yard provided it does not reduce the side yard below 5’ and its depth does not exceed 20’

4-Acre Future Park: Not developed. To be completed and maintained by Valley Wide Recreation & Park District. Drawing above is conceptual only.

1-Acre Park: Completed and maintained by Valley Wide Recreation & Park District.

1.15-Acre Detention Basin: Completed and maintained by Valley Wide Recreation & Park District.

Gazebo shade structure with picnic table and BBQ

Basketball Court

Tot-lot and picnic area with multiple picnic tables with BBQ’s

Monument at project entry

The property is being offered on an unpriced basis. Submit a Letter of Intent outlining proposed price and terms. Seller’s preferred terms are defined below.

Feasibility Period shall expire 45 days following execution of a Letter of Intent.

Two percent (2%) of purchase price shall be placed in escrow upon the execution of a Purchase and Sale Agreement. Upon approval of the Feasibility Period, the Deposit shall be increased to five percent (5%) of the purchase price, shall be released to Seller, and shall be non-refundable except for an occurrence of Seller default.

Close of escrow shall occur within 10 business days of Buyer’s approval of the Feasibility Period. Grading permit will be ready to pull.

The property will be sold and delivered in an “as-is” condition.

SELECT BUYER / SIGN LOI: SEPTEMBER 23, 2015

DD PERIOD ENDS: NOVEMBER 9, 2015

CLOSE OF ESCROW: NOVEMBER 24, 2015

BEGIN MODELS: FEBRUARY 2016

BEGIN PRODUCTION: APRIL 2016

GRAND OPENING: MAY 2016

FIRST CLOSINGS: JULY 2016

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

1,000 1,250 1,500 1,750 2,000 2,250 2,500 2,750 3,000 3,250 3,500 3,750 4,000 4,250 4,500 SQUARE FEET

NEW HOUSING PRICES (NET OF CONCESSIONS)

Legacy (Winchester) - 7200 sf Lots (5.23/mo.) Big Sky (Menifee) - 7500 sf Lots (3.26/mo.) Liberty (Winchester) - 8300 sf Lots (2.23/mo.)

Summerhouse (Menifee) - 8500 sf Lots (5.45/mo.) Mahogany Creek (Menifee) - 4800 sf Lots (4.14/mo.) Luz de Sol (San Jacinto) - 7000 sf Lots (2.33/mo.)

Vineyard Heights (Winchester) - 7500 sf Lots (1.41/mo.) Silvercreek (Menifee) - 7000 sf Lots (20/mo.) Cabrillo (Perris) - 5000 sf Lots (6.95/mo.)

Menifee Hills (Menifee) - 8000 sf Lots (2.09/mo.) Camellia (Menifee) - 6800 sf Lots (3.9/mo.) Sweetwater Ranch (Winchester) - 7200 sf Lots (4.52/mo.)

Capistrano (Winchester) - 7500 sf Lots (1.67/mo.) Cottonwood (Menifee) - 5000 sf Lots (1.09/mo.) Avelina (Perris) - 7200 sf Lots (7.96/mo.)

Horseshoe Ridge (Menifee) - 8000 sf Lots (4.06/mo.) Palomino (Menifee) - 7500 sf Lots (3.84/mo.) Steeplechase (Perris) - 7200 sf Lots (5.25/mo.)

Carmel (Menifee) - 7600 sf Lots (3.31/mo.) Lakeview (Menifee) - 5275 sf Lots (3.57/mo.) Newbridge (Menifee) - 7350 sf Lots (2.89/mo.)

Horizon (Winchester) - 7200 sf Lots (2.3/mo.) Sunrise (Winchester) - 7800 sf Lots (3/mo.) Remington (Menifee) - 7500 sf Lots (1.92/mo.)

Marigold (Menifee) - 7200 sf Lots (2.97/mo.) New Home Price Line

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Source: Real Estate Economics

Sales Information PRICING INFORMATION FLOOR PLAN CHARACTERISTICS Min Est. Mo. Costs

Total Units Units Monthly Sales List Advertise

d Price/ Maximum Size

Bed

Rm. Bath No. Of Garage Lot Size Assoc. Tax Mo.

Development Builder City Units Off'd Avail. Quarter Overall Base Concess. Sq. Ft. Premium

s

(Sq.

Ft.) Count Count Levels Spaces (Sq. Ft.) Dues Assess. Pymt. (1)

Big Sky Brookfield Menifee 108 100 7 5.95 3.26 $402,374 $10,000 $123.39 $10,200 3,304 4.3 3.0 1.7 3.3 7,500 $115 $330 $2,352

Silvercreek KB Home Menifee 94 81 8 28.33 20.00 $340,768 $3,399 $158.25 $2,000 2,193 3.6 2.3 1.6 2.0 7,000 $98 $282 $2,023

Horseshoe Ridge Richmond Menifee 117 61 16 5.29 4.06 $403,383 $5,000 $121.79 $15,000 3,360 4.5 3.0 1.8 3.0 8,000 $115 $332 $2,384

Palomino Richmond Menifee 112 112 5 4.30 3.84 $376,631 $10,000 $137.97 $7,769 2,758 3.2 2.5 1.6 2.8 7,500 $93 $336 $2,210

Remington Woodside Menifee 69 21 5 1.98 1.92 $377,323 $10,000 $138.94 $31,468 2,730 3.8 2.9 1.5 3.0 7,500 $98 $245 $2,132

Carmel Standard Pacific Menifee 110 43 4 3.97 3.31 $373,922 $5,000 $142.56 $0 2,603 4.7 3.0 1.5 3.0 7,600 $80 $309 $2,195

Lakeview Standard Pacific Menifee 97 73 8 4.30 3.57 $349,182 $5,000 $150.98 $61,293 2,366 3.8 2.8 1.6 2.3 5,275 $80 $286 $2,035

Newbridge Standard Pacific Menifee 116 42 8 0.00 2.89 $403,805 $5,000 $127.11 $2,180 3,201 4.5 3.3 1.5 3.3 7,350 $80 $332 $2,352

Menifee Hills Lennar Menifee 115 33 5 2.09 2.09 $379,003 $6,000 $147.20 $0 2,587 4.2 2.5 1.5 2.3 8,000 $43 $267 $2,146

Mahogany Creek DR Horton Menifee 108 90 6 3.31 4.14 $415,778 $5,000 $129.86 $0 3,211 4.2 3.2 1.8 3.0 4,800 $0 $319 $2,318

Marigold Woodside Menifee 42 27 10 2.31 2.97 $366,726 $10,000 $140.17 $10,170 2,633 4.3 2.5 1.5 3.0 7,200 $68 $285 $2,087

Cottonwood Pacific Comm. Menifee 190 110 0 0.00 1.09 $355,463 $10,000 $116.22 $3,875 3,123 3.6 3.0 2.0 2.5 5,000 $53 $229 $1,953

Summerhouse Centex Menifee 222 222 0 0.99 5.45 $381,075 $11,432 $184.89 $0 2,061 3.7 2.6 1.5 2.0 8,500 $186 $439 $2,456

Camellia Lennar Menifee 204 24 5 3.68 3.90 $364,019 $6,000 $152.49 $0 2,391 3.6 2.6 1.7 3.0 6,800 $192 $239 $2,177

Cabrillo KB Home Perris 184 165 16 6.31 6.95 $295,902 $2,959 $127.27 $0 2,333 3.3 2.3 1.6 2.0 5,000 $0 $335 $1,771

Avelina Pulte Perris 308 90 22 2.23 7.96 $309,323 $5,000 $120.38 $0 2,600 4.1 2.8 1.8 2.3 7,200 $0 $255 $1,741

Steeplechase Richmond Perris 137 80 7 6.31 5.25 $331,028 $5,000 $117.91 $0 2,860 3.6 2.4 1.6 2.8 7,200 $0 $351 $1,928

Luz de Sol Frontier Comm. San

Jacinto 151 48 9 1.85 2.33 $278,006 $8,340 $127.33 $1,725 2,230 3.8 2.5 1.5 2.5 7,000 $0 $179 $1,488

Vineyard Heights K. Hovnanian Wincheste

r 41 14 9 0.00 1.41 $430,659 $0 $122.72 $16,680 3,503 4.4 3.6 1.5 2.8 7,500 $73 $126 $2,299

Sweetwater Ranch Meritage Wincheste

r 128 128 3 3.31 4.52 $403,453 $0 $155.96 $7,271 2,616 3.5 2.5 1.8 2.5 7,200 $38 $271 $2,289

Legacy Beazer Wincheste

r 84 77 1 2.31 5.23 $369,893 $11,096 $177.93 $7,875 2,107 3.2 2.0 1.1 2.5 7,200 $21 $270 $2,041

Liberty Brookfield Wincheste

r 90 37 7 1.32 2.23 $442,235 $5,000 $123.96 $32,800 3,612 4.3 2.8 1.7 2.7 8,300 $50 $327 $2,498

Horizon Standard Pacific Wincheste

r 85 60 24 2.98 2.30 $431,789 $5,000 $136.62 $3,963 3,215 4.8 3.1 1.7 3.3 7,200 $52 $319 $2,442

Sunrise Standard Pacific Wincheste

r 87 56 9 4.30 3.00 $390,908 $5,000 $142.26 $11,650 2,763 4.7 2.8 1.7 3.0 7,800 $43 $209 $2,128

Capistrano Meritage Wincheste

r 54 41 21 1.65 1.67 $406,795 $18,135 $143.84 $49,272 2,864 4.0 3.1 1.5 2.8 7,500 $0 $194 $2,085

OVERALL AVERAGE 122.1 73.4 9 3.96 4.21 $375,178 $6,694 $138.72 $11,008 2,769 4.0 2.8 1.6 2.7 7,085 $63 $283 $2,141

GRAND TOTALS 3,053 1,835 215 99.06 105.32

Source: Real Estate Economics

12-mo. Change

Category 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2014 Q3 to 2015 Q3

No. of Active Developments(2) 5 7 8 12 17 19 21 24 25 8 47.1%

Average of Base Prices $328,122 $324,501 $331,204 $340,890 $343,057 $343,553 $349,267 $364,171 $368,843 $25,787 7.5%

Avg. Base Price (Net of Advertised Conc.) $322,480 $319,354 $325,380 $333,720 $334,988 $334,977 $340,523 $356,525 $362,083 $27,095 8.1%

Average Advertised Concession $5,642 $5,147 $5,824 $7,170 $8,069 $8,576 $8,744 $7,646 $6,761 ($1,308) -16.2%

Incentive as a % of Base Price 1.7% 1.6% 1.8% 2.1% 2.4% 2.5% 2.5% 2.1% 1.8% -0.5% -22.1%

Average of Unit Sizes (Square Footage) 2,642 sf 2,642 sf 2,622 sf 2,610 sf 2,672 sf 2,694 sf 2,693 sf 2,673 sf 2,671 sf -1 sf 0.0%

Average Price Per Square Foot $124 $123 $126 $131 $128 $128 $130 $136 $138 $10 7.5%

Avg. Price Per Square Foot (Net of Adv. Conc.) $122 $121 $124 $128 $125 $124 $126 $133 $136 $10 8.1%

Average Premium $5,397 $3,810 $9,860 $8,845 $10,613 $10,175 $11,131 $10,568 $9,976 ($637) -6.0%

Average of Minimum Lot Sizes(3) 7,140 sf 6,500 sf 6,347 sf 6,665 sf 6,937 sf 7,007 sf 7,039 sf 7,047 sf 7,085 sf 148 sf 2.1%

Total Market Area Monthly Sales Rate(4) 32/mo 39/mo 36/mo 50/mo 65/mo 82/mo 77/mo 95/mo 105/mo 40/mo 61.7%

Average Monthly Sales Rate Per Development 6.4/mo 5.6/mo 4.5/mo 4.1/mo 3.8/mo 4.3/mo 3.7/mo 4.0/mo 4.2/mo 0.4/mo 10.0%

Incremental Monthly Sales Rate Per Dev. 6.1/mo 4.8/mo 3.6/mo 3.8/mo 3.5/mo 4.8/mo 3.0/mo 4.3/mo 4.4/mo 0.9/mo 25.9%

Avg Released/Unsold Per Dev. 2.6 du 7.6 du 10.8 du 8.8 du 8.9 du 10.5 du 9.9 du 8.7 du 8.6 du -0.3 du -3.2%

Total Unsold Released Inventory 13 du 53 du 86 du 105 du 151 du 199 du 207 du 209 du 215 du 64 du 42.4%

Total Unsold Unreleased Inventory 426 du 597 du 601 du 849 du 1,034 du 1,227 du 1,291 du 1,392 du 1,218 du 184 du 17.8%

Total Inventory 439 du 650 du 687 du 954 du 1,185 du 1,426 du 1,498 du 1,601 du 1,433 du 248 du 20.9%

Months of Unsold Released Inventory 0.4 mos. 1.4 mos. 2.4 mos. 2.1 mos. 2.3 mos. 2.4 mos. 2.7 mos. 2.2 mos. 2.0 mos. -0.3 mos. -12.0%

Months of Unsold Unreleased Inventory 13.4 mos. 15.3 mos. 16.8 mos. 17.1 mos. 15.9 mos. 14.9 mos. 16.7 mos. 14.6 mos. 11.6 mos. -4.3 mos. -27.2%

Months of Total Inventory 13.8 mos. 16.6 mos. 19.3 mos. 19.2 mos. 18.2 mos. 17.3 mos. 19.4 mos. 16.8 mos. 13.6 mos. -4.6 mos. -25.2%

32/m

o

39/m

o

36/m

o

50/m

o

65/m

o

82/m

o

77/m

o

95/m

o

105/m

o

6.4/mo 5.6/mo

4.5/mo 4.1/mo 3.8/mo 4.3/mo

3.7/mo 4.0/mo 4.2/mo

0.0/mo

2.0/mo

4.0/mo

6.0/mo

8.0/mo

-

20

40

60

80

100

120

2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3

Sale

s/M

o. P

er D

ev.

New

Ho

me S

ale

s

Survey to Survey Sales Volume

Total Monthly Sales

$322,4

80

$319,3

54

$325,3

80

$333,7

20

$334,9

88

$334,9

77

$340,5

23

$356,5

25

$362,0

83

$122 $121

$124

$128 $125 $124

$126

$133 $136

$110

$115

$120

$125

$130

$135

$140

$290,000

$300,000

$310,000

$320,000

$330,000

$340,000

$350,000

$360,000

$370,000

2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3

New

Ho

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rice/S

F

New

Ho

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rice

Survey to Survey Net Price Trends

Average New Home Price

Source: Real Estate Economics

Looking northeast from rear of Lot 97 Looking east from rear of Lot 97

Looking west along Hitching Post Dr with future park site on left Previously sold within the tract

Model home Plan 3 Model home Plan 5

Interior of model home Plan 5 Interior of model home Plan 4

ASG Development Advisors (“Broker”) has not verified the information contained herein and makes no representation or warranty regarding its completeness or accuracy. The information was obtained from other sources and is only intended to provide a summary to interested parties. Nothing contained herein is, or shall be construed as, legal, accounting, or financial advice. Interested parties should conduct their own due diligence investigation prior to purchase, including an independent review of the attached information. Broker may act as a dual agent representing both the buyer and seller in certain transactions, including any transaction involving the property described in these materials. Further, Broker may be representing multiple parties who are pursuing the purchase of the property described in these materials. The delivery of these materials to a party shall not preclude Broker from representing the seller or other interested parties in pursuing a proposed transaction involving the property described herein.