EXCLUSIVE INVESTMENT OFFERING. Summerplace Apartments 112 Units Las Vegas, NV

Transcription

1 EXCLUSIVE INVESTMENT OFFERING Summerplace Apartments 112 Units Las Vegas, NV

2 EXCLUSIVE CONTACTS Patrick Sauter Managing Advisor T psauter@naivegas.com Art Carll-Tangora Senior Advisor T acarll@naivegas.com Antone Brazill, CCIM Senior Advisor T abrazill@naivegas.com 8945 W Russell Road Las Vegas, NV T

3 EXECUTIVE SUMMARY

4 THE OFFERING Offering Price $5,900,000 Price per Unit $52,679 Address 27 N 28th St. Las Vegas, NV Year Built 1979 Number of Units 112 Land Size 3.14 AC Net Rentable SF 39,200 SF Average Unit Size 350 SF Market Rent $485 Current Occupancy 98% Proforma CAP Rate 6.55%

5 E. Charleston Blvd. N 28th St. EXCEPTIONAL LOCATION, INTIMATE COMMUNITY Summer Place Apartments is comprised of seven, two story garden style buildings consisting of 112 studio units in 28 individually parceled four-plexes. Contruction is stucco over wood frame with built up tar roofs. The property features a gated entrance, swimming pool, lush mature landscaping, ample parking, on-site laundry facilities and a clubhouse/leasing office with a television room and pool table. Summer Place offer residents an affordable living environment within minutes of downtown, the "Strip" and other significant employment centers.

6 EXCEPTIONAL ACCESSIBILITY Summerplace is located within the Downtown Las Vegas submarket near the intersection of Fremont Street and Eastern Avenue. The property are less than two miles from the downtown hotel and casinos and within one mile of the US 95 freeway. Downtown is undergoing a transformation due the City of Las Vegas' Downtown Redevelopment Agency leading the way with several new projects completed and many more planned. On the heels of the hugely successful Las Vegas Premium Outlet Mall, construction has begun on the World Furniture Mart, which will consist of several million square feet of retail space. Within one mile of the property the City has designated a new entertainment district which will be comprised of nightclubs, restaurants and bars, this non-gaming area will feature live music nightly along several blocks of Fremont Street "The Strip" Las Vegas Blvd. Valley High School E. Sahara Ave. Maryland Pkwy. E. Charleston Blvd. LV Downtown E. Bonanza Rd. 15 S. Eastern Ave. Sunrise Acres Elementary School Fremont St. Roy Martin Middle School 515

7 PROPERTY DESCRIPTION

8 PROPERTY DESCRIPTION Units: 112 Address: Parcel Number: 27 N 28th St. Las Vegas, NV through 009 (4 Plex Parcels) Year Completed: 1979 Land Size: 3.14 AC Net Rentable SF: 39,200 SF Average Unit Size: 350 SF Floorplans: 1 Zoning: R-PD34 Parking Spaces: TBD

9 PROPERTY AMENITIES Summer Place Apartments, located in Downtown Las Vegas, NV, offers spacious studios for those interested in a slow-paced lifestyle. Each studio apartment includes air conditioning and heating, a private bath.,and kitchen with modern appliances. Unfurnished and furnished units are available. Within the warm and cozy atmosphere, the property features controlled access, a refreshing swimming pool, clubhouse, a laundry facility, and an on-site maintenance. Summer Place Apartments is nestled in a quiet, mature, and serene community with night security, and 24 hour video surveillance. Located directly on the CAT bus line and convenient to Downtown, freeways and the famous Las Vegas Strip. PRIVATE SPACES: Furnished Available Residents Pay Electricity Full Kitchens Private Bath Assigned Parking Space Private Entrances SOCIAL SPACES: Laundry Facility Clubhouse with Billiards Table On Public Transportation Controlled Access Swimming Pool Ample Parking

10 FINANCIAL ANALYSIS

11 UNIT MIX UNIT TYPE TOTAL UNITS SQFT MARKET RENTS RENT PER SF Studio $485 $1.39 *Rents Quoted January 2018

12 FINANCIAL ANALYSIS Operating Income 2017 Per Unit Pro Forma Current Rent roll Per Unit Year 1 Pro Forma (4% Growth) Per Unit GPRI/Economic Rent $651,840 $5,820 $677,914 $6,053 Vacancy Loss $(13,037) $(116) $(13,558) $(121) Bad Debt/Other $(6,518) $(58) $(6,779) $(61) Net Rental Income $598,741 $5,346 $632,285 $5,645 $657,576 $5,871 Other Income $3,332 $30 $31,614 $282 $32,879 $294 Effective Gross Income (EGI) $602,073 $5,376 $663,899 $5,928 $690,455 $6,165 Forecasted Expenses 2017 Per Unit Pro Forma Current Rent roll Per Unit Year 1 Pro Forma (4% Growth) Per Unit Payroll $92,138 $823 $100,800 $900 $100,800 $900 Administration $12,331 $110 $16,800 $150 $16,800 $150 Management $0 $0 $19,917 $178 $20,714 $185 Repairs & Maintenance $29,292 $262 $44,800 $400 $44,800 $400 Utilities $60,063 $536 $61,865 $552 $61,865 $552 Advertising $13,806 $123 $11,200 $100 $11,200 $100 Insurance $17,843 $159 $18,378 $164 $18,378 $164 Property Tax (Actual) $28,219 $252 $29,348 $262 $29,348 $262 Turnover Total Expenses $253,692 $2,265 $303,108 $2,706 $303,905 $2,713 Net Operating Income 2017 Per Unit Current Pro Forma Per Unit Year 1 Pro Forma (4% Growth) Per Unit NOI $348,381 $3,111 $360,791 $3,221 $386,550 $3,451 CAP Rate 5.90% 6.12% 6.55%

13 NOTES TO FINANCIAL UNDERWRITING Assumptions for the proforma are based on the Property s characteristics, as well as market-driven revenue and expense trends. REVENUE Proforma Gross Potential Income is generated using the current Market Rent Schedule plus 4% growth. Proforma Economic Vacancy is 3% Other income is estimated at 5% of Net Rental Income per unit per month. FORECASTED EXPENSES Payroll is forecasted at the equivalent of $900 per unit per year reflecting market expense for staffing requirements of a manger, leasing agents, maintenance supervisor, maintenance techs and porters. Administration is forecasted at $150 per unit per year reflecting market averages for similar properties. Management fees are forecasted 3% of Gross Operating Income, currently no management fee is paid by the property. Repairs & Maintenance expenses are forecasted at $400 per unit per year, consistent with market averages for similar size, age, and construction quality. Utilities are forecasted to be the actual utility amount with a 3% increase. Advertising expenses are forecasted to be $100 per unit per year Property Insurance is forecasted to be $164 per unit per year Property Tax are calculated on the current amount plus 4%.

14 RENT COMPARABLES

15 RENT COMPARABLES VETERANS RIDGE ON S SUMMERPLACE 1 2 VILLAGE Desert Rose 3 4 CHARLESTON SIEGEL SUITES CHARLESTON II 50 N 21st St 29 N 28th St 27 N 28th St 3040 E Charleston Blvd 2900 E Charleston Blvd Built 1979 Built 1980 Built 1978 Built 1984 Built Units 204 Units 236 Units 477 Units 232 Units # PROPERTY NAME AVERAGE SF STUDIO RENT/SF RUBS 1 Veterans Village 356 $600 $1.81 No 3 Desert Rose Apartments 298 $465 $1.60 No 2 Siegel Suites Charleston II 523 $775 (Monthly) $1.48 Yes 4 Ridge on Charleston 385 $475 $1.46 No 6 Summerplace Apartments 350 $485 $1.39 No *Rents Quoted January 2018

16 RENT COMPARABLES MAP S Summerplace 1 Veterans Village 2 Desert Rose Ridge on Charleston Desert Plaza Siegel Suites Charleston II S 5 3

17 LAS VEGAS OVERVIEW

18 HIGHLIGHTS Fast growing population 3rd largest convention destination International tourism hub Favorable business tax structure No state income tax 24-hour economy Growing tech-industry environment A young and highly productive work force Modern transportation infrastructure Attractive quality of life and moderate climate Affordable cost of living Favorable shopping, dining & entertainment LOCATION Located in Clark County in Southern Nevada, Metropolitan Las Vegas is the 31st largest MSA in the United States, with over two million residents. With 320 days of sunshine and an average year round temperature of 80 degrees, Las Vegas is an internationally renowned tourism and convention destination. After lagging for most of the economic recovery, Las Vegas has begun to see increases in job growth, home prices, construction, tourism, and population. As the national recovery progresses, people will continue to be drawn to Las Vegas for its employment opportunities, warm weather, quality of life, and affordable cost of living.

19 POPULATION With over two million residents, the Las Vegas MSA is home to approximately 70% of the state s population. Las Vegas has traditionally counted robust population growth as one of its key economic drivers. Over the early part of the last decade, the metro area grew at rate that was 3.5 times faster than that of the nation. This growth was fueled by high levels of in-migration, averaging 65,000 people from 2000 to Like most of the nation, population growth suffered during the recession and Las Vegas saw minimal increases. People have once again begun migrating to Las Vegas. Population growth in the region is driven by trends, such as the shifting of the nation s population center further to the west, and opportunities for jobs in industries like healthcare, logistics, and technology, as well as a recovering tourism industry. Projections show the region is expected to grow three percent annually over the next four years, reaching 2.3 million people. One of the market s strong aspects is that Las Vegas has a large concentration of residents in the 20 to 34-year-old demographic, the group most likely to rent apartments. This group is set to increase by nearly 16% over the next five years, which is substantially higher than any other western US market.

20 HOUSING MARKET Another positive economic indicator is Las Vegas s improving housing market. The total number of existing homes, condos and townhomes sold in January 2017 increased 14.1% for homes and 13.2% for condos and townhomes from January The total number of existing homes, condos and townhomes sold in February 2017 alone was 2,815, up from 2,676 in February Compared to one year ago, sales were up 6.5% for homes and up 0.4% for condos and townhomes. Accompanying the tight supply is the continuing increase in prices. The median single-family home price in Southern Nevada two years ago was $200,000. The median price of a Southern Nevada single-family home in February 2017 was $240,000, up 0.8% from January 2017 and up 8.9% from February 2016.The median price of condos and townhomes sold in February 2017 was $118,000, up 4.0% from January 2017, but down 2.9% from February Metropolitan Las Vegas represents an affordable alternative to neighboring markets, and a return to robust in-migration will boost the local housing market, as well as complementary industries. Overall, the Las Vegas housing market moves toward a period of escalating housing prices and heads onto a path to recovery as fewer distressed sales occur.

21 DEMOGRAPHICS 1 Mile Radius 3 Miles Radius 5 Miles Radius 28, , , $36, $45, , ,593 8, ,954 20, ,608 $27,601 $13,812 $36,704 $33,113 $15,554 $45,270 $36,277 $17,199 49,544 Households by Income The Largest Group: <$15, % The Smallest Group: $200, % Households by Income The Largest Group: <$15, % The Smallest Group: $200, % Households by Income The Largest Group: <$15, % The Smallest Group: $200, %

22 TRANSPORTATION Las Vegas residents rely heavily on the area s large and expanding freeway system. Coupled with the explosive growth of the region and adequate funding from the state, Las Vegas has one of the nation s most expansive freeway networks. Las Vegas is home to the seventh busiest airport in the nation and the 24th busiest airport in the world (2013), McCarran International Airport. The airport reported over 41.8 million passengers in 2013, creating a $30 billion yearly economic impact. McCarran International Airport, with four runways and three terminals, is a focus city for Southwest Airlines and Allegiant Air and serves as a hub for Great Lakes Airlines. To meet the demands of Las Vegas growth, in terms of both local residents and visitors, McCarran International Airport is in the process of undergoing a $2.4 billion capital improvement program. The Regional Transportation Commission of Southern Nevada (RTC) provides mass transit that connects throughout the Las Vegas metropolitan area. The RTC transit fleet consists of 39 bus routes. In 2013, RTC Transit carried nearly 60 million passengers in the greater Las Vegas area. The Las Vegas Monorail is a 3.9-mile mass transit system located on the Las Vegas Strip. The monorail is the only privately owned public transportation system in the United States. In 2013, the monorail reported 4.1 million in yearly ridership and $18.4 million in revenue. The city hopes to expand the monorail to McCarran International Airport in the future. The Union Pacific Railroad is the only Class I railroad to provide rail freight service to Las Vegas. Using the Union Pacific Railroad tracks, the railroad and the Las Vegas Railway Express provide passenger charter service from Fullerton, California to Las Vegas on the X Train.

23 EMPLOYMENT The Las Vegas MSA has enjoyed exceptional employment growth over several decades. The employment base in Las Vegas has more than doubled over the last 20 years, from 414,200 employees in 1993 to 995,400 employees by year-end Like most citied during the Great Recession, the city was not shielded by the turn in the economy, as evidenced by three consecutive years of job losses. Although the city will never see a housing construction boom like the one it experienced from 2004 to 2006, Las Vegas employment has begun to see a positive turnaround. The city added about 9,000 jobs in 2015, followed by approximately 15,000 jobs in Source: Moody Analytics

24 EMPLOYMENT Las Vegas is home to many and offers a vast amount of employment opportunities. Nearly all major industries contributed to job gains in Las Vegas added 20,800 jobs throughout 2015 and the jobless rate fell to 6.8% in September. It is projected that 52,000 jobs will be added in 2016 and 60,000 jobs will be added in Nevada is expected to return to its pre-recession high of nearly 1/4 million jobs by mid There are over 376,000 employees whose jobs are either directly or indirectly dependent on the tourism economy in Las Vegas. Las Vegas job growth also stems from an employment diversification among the city s industries. While tourism, gaming and hospitality are still frontrunners, contributions are also coming from education, health care, information technology, and business services.

25 DEVELOPMENT & CONSTRUCTION Signs of an improving economy and future job growth in Las Vegas are also evident in construction projects and development. Last year construction was completed and The Lucky Dragon opened its doors in November. A boutique property, its points of distinction is being the first property in the city designed and built from the ground up to create an authentic Asian cultural and gaming experience. Las Vegas next mega-resort will be the 3,500 room Resort World, set on 86-acres, with a cost between $4-$7 billion. The company expects to create some 5,000 direct construction jobs once the building activity is in full swing. Resorts World is set to open in 2019 and will hire about 2,500 full-time employees in time for the integrated resort s opening. The Las Vegas Convention and Visitors Authority board of directors approved the second phase of the Las Vegas Convention Center expansion project by unanimously authorizing an eight-month contract extension with its builder representative to begin the process of designing a 600,000-square-foor exhibit hall. The first phase involved demolition of the Riviera. There are hopes of having a construction process in place by the end of the year, with the groundbreaking of the new hall by early Say hello to Sin City s new NFL team. In March 2017, NFL owners voted 31-1 to approve the relocation of the Oakland Raiders to Las Vegas. The state of Nevada approved $750 million for a new stadium. Tourists will be paying for 39% of the Las Vegas Raiders new stadium in a form of hotel room tax. The cost of the 65,000-seat domed stadium is set at $1.9 billion with $500 million being paid for by the owner of the Raiders, Mark Davis. Las Vegas housing market is getting plenty of construction, with subdivisions and sprawling apartment complexes opening around the valley. Now, some investors are looking to build higher. At least four towering apartment projects in Las Vegas, comprising almost 1,400 units total, have received city approvals since last summer. Downtown 57 calls for two 15-story towers, one at Maryland Parkway and Lewis Avenue and another nearby at Lewis and 11th Street. There s also the 18-story Avante Lofts at Hoover Avenue and Sixth Street, the 15-story Thunderbird Lofts on Las Vegas Boulevard just south of Charleston Boulevard and The Midtown-Downtown Project, which calls for 12- and 14-story buildings at Casino Center Boulevard and Hoover.

26 Avante Lofts 18 Stories Downtown 57 Two 15 Story Towers Thunderbird Lofts 15 Stories Mega Resorts World $4-8 Billion Wynn s Paradise Park $1 Billion Las Vegas Convention Center $1.4 Billion MGM Convention Center $130 Million NFL Raiders Stadium $1.9 Billion

27 LIFESTYLE OVERVIEW The Las Vegas Strip is home to many, but a travel destination to even more. 42 million people visit Las Vegas each year and they invest $9.4 billion in the gaming industry, two-thirds of it in the casino resorts on the Las Vegas Strip. The Las Vegas Strip contains 17 of the 20 biggest hotels in the United States. Many of them are well known for their architecture the Paris has its own Eiffel Tower, the Luxor is designed like an Egyptian pyramid, the Venetian has gondoliers on its Grand Canal. The Bellagio has choreographed fountains, Chihuly glass sculptures and original Picassos. Caesars Palace re-creates a Roman forum. Some of the restaurants rank among the finest in the world. There are bars and nightclubs, and in many casinos, showrooms that feature nightly shows by some of the biggest names in entertainment today. The shopping is outstanding. From high end designers to casual, Vegas has every kind of shopping imaginable. A large part of the Las Vegas lifestyle is provided by the convention business. 22,000 conferences, more than 400 a week, attract 6 million visitors a year.

28 ECONOMY The primary drivers of the Las Vegas economy are tourism, gaming, and conventions, which in turn, feed the retail and restaurant industries. The overall economic impact of the tourism industry in Southern Nevada in 2013 was more than $45 billion. With nearly one in three jobs based in the leisure and hospitality sector, Metro Las Vegas economic success is fundamentally tied to tourism. Based on statistics from the Las Vegas Convention and Visitors Authority, the Las Vegas economy is moving in the right direction. Metro Las Vegas attracted 39.7 million visitors in 2013, the second highest total visitation ever. Employment gains are still slow to benefit from this boost as the leisure and hospitality sector remains approximately 10,000 jobs short of pre-recession levels. However, as the national recovery progresses, people are gaining discretionary income and are beginning to travel and take vacations as they did before, sending the Las Vegas economy in a positive direction.

29 ENTERTAINMENT Whether you re looking for a casual eat or a fine dining experience, Las Vegas offers some of the best restaurants that rank among the finest in the world with celebrity chefs. There are endless options in every casino on The Las Vegas Strip, or Downtown Las Vegas. New York. London. Paris. They ve got nothing on Las Vegas. Las Vegas is home to some of the most spectacular shopping in the world. Nearly every where you go on the strip, there are options to shop. There are the Crystals at CityCenter, The Forum Shops at Caesars, The Grand Canal Shoppes at The Venetian - The Palazzo, and The Miracle Mile Shops at Planet Hollywood. All ranging from budget friendly shopping to high end designers. Downtown Las Vegas offers many more options to shop and dine. The newly revitalization of the area offers The Container Park, a family-friendly outdoor shopping, dining, and entertainment attraction. The nightclub scene is huge. There are bars and nightclubs, with famous DJ s. There are many casinos with showrooms that feature nightly shows by some of the biggest names in entertainment today: Celine Dion, Brittney Spears, Mariah Carey and Elton John among them.

30 GAMING & RESORTS The major attractions in Las Vegas remain the casinos and resorts with almost 40 million people visiting the city each year. There may be casinos elsewhere, but it s Las Vegas resorts that set the bar. Spin the wheel, roll the dice and take your pick. There is no going wrong with the resort options up and down the Strip. From the towering Stratosphere at 112 stories high to the opulent Wynn, there s a casino or a casino game for everyone. The resorts of the Las Vegas Strip offer expansive casinos right on property, so it s just a few steps away. Or zero steps away. At certain resorts in Las Vegas, such as The Palazzo, mobile gaming devices let you play your favorite games in the palm of your hand. Each resort offers a different theme and decor. From the fountains at Bellagio, Gondoliers at the Venetian, or a bedazzled, multi-decked Chandelier bar at The Cosmopolitan, there is something to see at each resort.

31 ARTS & CULTURE Las Vegas offers its residents and visitors a wide range of community and cultural activities to enjoy, such as local arts and performing arts centers, museums, botanical gardens, parks, and more. Listed on the National Register of Historic Places since 1978, Las Vegas Springs Preserve is a 180-acre cultural institution designed to commemorate the city s dynamic history and to provide a vision for a sustainable future. Featuring museums, galleries, outdoor events, colorful botanical gardens and an interpretive trail system through a scenic wetland habitat, the Preserves were named Best Place to Take the Kids in Southern Nevada by Nevada Magazine and Best Place to Take Out-of-Town Guests by the Las Vegas Review-Journal. In 2012, Las Vegas opened The Smith Center for the Performing Arts, a world-class performing arts center, showcasing the best in artistic excellence, education and culture from around the world. The city is also home to the Las Vegas Natural History Museum, the Contemporary Arts Center, UNLV s Barrick Museum for the arts, the Neon Museum, and the DISCOVERY Children s Museum. Several galleries, including the Bellagio Gallery of Fine Art, the Centerpiece Gallery, the Trifecta Gallery, the Big Springs Gallery, and the Lou Ruvo Center for Brain Health, feature a rotating collection of artworks, make their home in Las Vegas

32 GOLF With over 60 golf courses, Las Vegas is well known for its quality courses and outstanding landscapes. The area has a variety of options, from stark desert settings and lush green landscapes, bargains and exclusive courses including the nation s most expensive greens fees. The area boasts golf courses designed by Jack Nicklaus, Tom Fazio, Rees Jones and Pete Dye, among many others. Top courses in the Las Vegas area include Shadow Creek, Cascata, Arroyo Golf Club, Wynn Golf Club, and Las Vegas Paiute - Wolf Course. The top golf course in the Las Vegas area, Shadow Creek, was built by Steve Wynn for approximately $50 million in The 18-hole course is located on 350 acres, just off Losee Road in North Las Vegas. Designed by Tom Fazio, who has planned more of the 100 top-rated golf courses than any other architect, Shadow Creek was once one of the most exclusive golf courses in the world and could only be played by invited casino guests of Steve Wynn or the Mirage properties. Acquired by MGM in 2000, today the course is open to all MGM Resorts International property guests, and the greens fee is $500. Shadow Creek is listed at No. 10 on Golfweek s Best Modern Golf Courses list and ranked No. 17 on Golf Magazine s Top 100 Courses You Can Play. The rival to Shadow Creek, Cascata Golf Club was built by Caesars Entertainment and designed by Rees Jones in The course consists of a unique design including a 418-foot waterfall flowing from the mountainside with almost every hole self-contained and visible from no others. The course is a high-end experience with high rates and mandatory caddies. Cascata is currently ranked 58th on Golf Magazine s Top 100 You Can Play. The only golf course attached to a resort on the Las Vegas Strip, the Wynn Golf Club was designed in 2005 by architect Tom Fazio and Steve Wynn. The 18-hole, 7,042-yard, par 70 golf course is built on the site of the former Desert Inn course and features a landscape of waterfalls, streams and a forest of trees. The Wynn Golf Club has earned the Golf Magazine s Gold Medal Award, one of 25 courses in the country to get the award and the only course in the state with the honor. Additionally, the course ranked No. 66 on Golf Magazine s Top 100 Courses You Can Play.

33 TERMS & GUIDELINES

34 TERMS & CONDITIONS This package is provided to you by NAI Vegas and is intended solely for your limited use and benefit in determining whether you desire to express further interest in purchasing the property described in the attached documentation (the Property ). The providing of this package to you and your use thereof is conditioned upon your agreement to the terms set forth below. This package contains selected information pertaining to the Property. It does not purport to be a representation of the state of affairs of the current owner, nor should it be construed to contain all or part of the information which prospective investors would deem necessary to evaluate the Property for purchase. Any financial projections and information provided are for general reference purposes only, are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the current owner and NAI Vegas. All projections, assumptions and other information provided are made herein are subject to material variation. NAI Vegas has not independently investigated the accuracy of the information within the package, as such information was obtained by the owner and/or public records. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. Neither the owner, NAI Vegas, nor any of their respective directors, officers, agents, affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of the information contained within this package or any supplemental information provided after the delivery of this package to you, and no legal commitment or obligation shall arise by reason of your receipt of this package or use of its contents. Please also refer to the disclaimer at the bottom of each page of this package, which disclaimer is incorporated herein by reference. You should understand and be advised that the owner of the Property expressly reserves the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with you or any other party at any time with or without notice which may arise as a result of this package. The owner shall have no legal commitment or obligation to you or any other party reviewing this package, nor shall the owner be required to accept an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner s obligation therein have been satisfied or waived. By receipt of this brochure, you agree that this brochure and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this brochure or any of its contents to any other entity without the prior written authorization of owner or NAI Vegas. You also agree that you will not use this brochure or any of its contents in any manner detrimental to the interest of the owner or NAI Vegas. This package describes certain documents including leases and other materials, which documents are described in summary form only. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected and advised to review all such summaries and other documents of whatever nature independently with legal counsel, tax and other professionals of their choice who have the expertise to assist in investigating this information in detail. You are therefore advised not to rely solely on this Memorandum as part of your investigations on this Property. If you have no interest in further pursuing this Property, please return this package to NAI Vegas.

35 TRANSACTION GUIDELINES The offering of Cimarron is being conducted by NAI Vegas and NAI Vegas will be available to assist prospective investors with their review of this Property. On-site inspections of the Property and tours of the market area must be arranged with NAI Vegas. All offers must be submitted to NAI Vegas. Such offers should, at a minimum, include the following: The purchase price The source of capital, both equity and debt, for the transaction The amount of earnest money deposit and proof of funds A detailed schedule of the due diligence and requisite approval process; and A description of assumptions utilized for the offer

36 Patrick Sauter Managing Advisor T psauter@naivegas.com Art Carll-Tangora Senior Advisor T acarll@naivegas.com Antone Brazill, CCIM Senior Advisor T abrazill@naivegas.com 8945 W Russell Road Las Vegas, NV T