THE INN AT RIO RANCHO HOTEL & CONFERENCE CENTER

THE INN AT RIO RANCHO HOTEL & CONFERENCE CENTER 1465 RIO RANCHO DR SE RIO RANCHO, NM 87124 David Laney Executive Director 480.626.0142 david.laney@svn.com SVN RealStar Advisors 10789 N. 90th St., Suite 203, Scottsdale, AZ 85260 OFFERING MEMORANDUM

PROPERTY INFORMATION 3 Property Summary Property Description Complete Highlights Additional Photos LOCATION INFORMATION 8 Regional Map Location Maps Aerial Map FINANCIAL ANALYSIS 12 Financial Summary Income & Expenses Unit Mix Summary DEMOGRAPHICS 17 Demographics Report Demographics Map ADVISOR BIOS 20 Advisor Bio & Contact 1 Back Page SVN RealStar Advisors 10789 N. 90th St., Suite 203, Scottsdale, AZ 85260 OFFERING MEMORANDUM

1 PROPERTY INFORMATION 1465 Rio Rancho Dr SE Rio Rancho, NM 87124 THE INN AT RIO RANCHO HOTEL & CONFERENCE CENTER 1465 RIO RANCHO DR SE RIO RANCHO, NM 87124 SVN RealStar Advisors Page 3

Property Summary OFFERING SUMMARY Sale Price: Subject To Offer Cap Rate: 0.00% NOI: $123,506 PROPERTY OVERVIEW The Inn at Rio Rancho Hotel & Conference Center consists of 118 rooms, and 4,400 square feet of event and conference space in 5 meeting rooms. The offering includes the El Toro Restaurant Bar & Grill, which is attached and separated by door in Lobby, all FFE included. The property sits on 5 acres facing the busy Rio Rancho Blvd. (main arterial in Rio Rancho) and is very visible from the street. The layout of the property creates an enclosed outdoor recreational and event area that serves both meetings group and family events. Lot Size: 5.14 Acres PROPERTY HIGHLIGHTS Year Built: 1969 Building Size: 55,718 SF Zoning: C-1 Market: Albuquerque Submarket: Rio Rancho Meetings & Event Center Space. El Toro Bar & Grill Conveys 5.14 Acres For Redevelopment Opportunity- C-1 Retail Zoning. Tremendous Upside in Management Turnaround. Located in Rio Rancho, New Mexico Across From Intel Manufacturing. Short Sale Opportunity. Price / SF: - THE INN AT RIO RANCHO HOTEL & CONFERENCE CENTER 1465 RIO RANCHO DR SE RIO RANCHO, NM 87124 SVN RealStar Advisors Page 4

Property Description PROPERTY OVERVIEW The Inn at Rio Rancho Hotel & Conference Center consists of 118 rooms, and 4,400 square feet of event and conference space in 5 meeting rooms. The offering includes the El Toro Restaurant Bar & Grill, which is attached and separated by door in Lobby, all FFE included. The property sits on 5 acres facing the busy Rio Rancho Blvd. (main arterial in Rio Rancho) and is very visible from the street. The layout of the property creates an enclosed outdoor recreational and event area that serves both meetings group and family events. LOCATION OVERVIEW The Inn at Rio Rancho Conference & Event Center is located in the city of Rio Rancho, New Mexico. Rio Rancho is a suburb located just Northwest of the Albuquerque metro area. The hotel fronts off of Rio Rancho Drive (main arterial in city) and has excellent street exposure and traffic counts. THE INN AT RIO RANCHO HOTEL & CONFERENCE CENTER 1465 RIO RANCHO DR SE RIO RANCHO, NM 87124 SVN RealStar Advisors Page 5

Complete Highlights SALE HIGHLIGHTS Meetings & Event Center Space. El Toro Bar & Grill Conveys 5.14 Acres For Redevelopment Opportunity- C-1 Retail Zoning. Tremendous Upside in Management Turnaround. Located in Rio Rancho, New Mexico Across From Intel Manufacturing. Short Sale Opportunity. THE INN AT RIO RANCHO HOTEL & CONFERENCE CENTER 1465 RIO RANCHO DR SE RIO RANCHO, NM 87124 SVN RealStar Advisors Page 6

Additional Photos THE INN AT RIO RANCHO HOTEL & CONFERENCE CENTER 1465 RIO RANCHO DR SE RIO RANCHO, NM 87124 SVN RealStar Advisors Page 7

2 LOCATION INFORMATION 1465 Rio Rancho Dr SE Rio Rancho, NM 87124 THE INN AT RIO RANCHO HOTEL & CONFERENCE CENTER 1465 RIO RANCHO DR SE RIO RANCHO, NM 87124 SVN RealStar Advisors Page 8

Regional Map The Inn at Rio Rancho Hotel & Conference Center THE INN AT RIO RANCHO HOTEL & CONFERENCE CENTER 1465 RIO RANCHO DR SE RIO RANCHO, NM 87124 SVN RealStar Advisors Page 9

Location Maps THE INN AT RIO RANCHO HOTEL & CONFERENCE CENTER 1465 RIO RANCHO DR SE RIO RANCHO, NM 87124 SVN RealStar Advisors Page 10

Aerial Map The Inn at Rio Rancho Hotel & Conference Center THE INN AT RIO RANCHO HOTEL & CONFERENCE CENTER 1465 RIO RANCHO DR SE RIO RANCHO, NM 87124 SVN RealStar Advisors Page 11

3 FINANCIAL ANALYSIS 1465 Rio Rancho Dr SE Rio Rancho, NM 87124 THE INN AT RIO RANCHO HOTEL & CONFERENCE CENTER 1465 RIO RANCHO DR SE RIO RANCHO, NM 87124 SVN RealStar Advisors Page 12

Financial Summary INVESTMENT OVERVIEW Price $0.00 Price per Room $16,949 RevPAR $20 ADR $57 CAP Rate 0.00% Cash-on-Cash Return (yr 1) 6.41 % Total Return (yr 1) $60,186 Debt Coverage Ratio OPERATING DATA Gross Scheduled Income - Other Income - Total Scheduled Income - Vacancy Cost - Gross Income $1,108,171 Operating Expenses $984,665 Net Operating Income $123,506 Pre-Tax Cash Flow $37,319 FINANCING DATA Down Payment $582,500 Loan Amount $1,417,500 Debt Service $86,187 Debt Service Monthly $7,182 Principal Reduction (yr 1) $22,867 THE INN AT RIO RANCHO HOTEL & CONFERENCE CENTER 1465 RIO RANCHO DR SE RIO RANCHO, NM 87124 SVN RealStar Advisors Page 13

Income & Expenses INCOME SUMMARY PER SF Room rental $892,924 $16.03 Rollaway $75 $0.00 Laundry/Valet $371 $0.01 Pet fees $12,553 $0.23 F&B Food $23,587 $0.42 F&B Liquor $38,144 $0.68 BQ Gratuity $6,722 $0.12 BQ Equipment Rental $10,815 $0.19 BQ Room $38,138 $0.68 BQ Set Up $14,582 $0.26 BQ Food $64,162 $1.15 Miscellaneous income $6,098 $0.11 Gross Income $1,108,171 $19.89 EXPENSE SUMMARY PER SF Payroll Expenses $544,529 $9.77 Utilities $177,317 $3.18 Supplies $66,678 $1.20 Repair & Maintenance $55,585 $1.00 Food & Beverage Expense $52,286 $0.94 Breakfast Food $43,964 $0.79 Commissions for bookings $32,306 $0.58 Professional Fees $5,000 $0.09 Misc. $7,000 $0.13 Gross Expenses $984,665 $17.67 THE INN AT RIO RANCHO HOTEL & CONFERENCE CENTER 1465 RIO RANCHO DR SE RIO RANCHO, NM 87124 SVN RealStar Advisors Page 14

Income & Expenses INCOME SUMMARY Net Operating Income $123,506 $2.22 PER SF THE INN AT RIO RANCHO HOTEL & CONFERENCE CENTER 1465 RIO RANCHO DR SE RIO RANCHO, NM 87124 SVN RealStar Advisors Page 15

Unit Mix Summary UNIT TYPE COUNT % TOTAL SIZE (SF) MIN. RENT MAX RENT RACK RATE DESCRIPTION Std 2 Qn 48 40.7 - - Std King 12 10.2 - - Courtyard Qn 18 15.3 - - King Sleeper 22 18.6 - - Bus Pls King 2 1.7 - - Bus Pls Qn 11 9.3 - - Murphy RM 2 1.7 - - Access Qn 2 1.7 - - Suite 1 0.8 - - Totals/Averages 118 100% 0 $0.00 $0.00 THE INN AT RIO RANCHO HOTEL & CONFERENCE CENTER 1465 RIO RANCHO DR SE RIO RANCHO, NM 87124 SVN RealStar Advisors Page 16

4 DEMOGRAPHICS 1465 Rio Rancho Dr SE Rio Rancho, NM 87124 THE INN AT RIO RANCHO HOTEL & CONFERENCE CENTER 1465 RIO RANCHO DR SE RIO RANCHO, NM 87124 SVN RealStar Advisors Page 17

Demographics Report 1 MILE 3 MILES 5 MILES Total population 8,251 63,249 134,395 Median age 45.1 38.8 38.3 Median age (male) 44.2 38.1 37.7 Median age (female) 46.4 39.2 39.0 Total households 3,523 24,721 51,556 Total persons per HH 2.3 2.6 2.6 Average HH income $67,639 $74,629 $76,965 Average house value $199,490 $240,244 $241,707 * Demographic data derived from 2010 US Census THE INN AT RIO RANCHO HOTEL & CONFERENCE CENTER 1465 RIO RANCHO DR SE RIO RANCHO, NM 87124 SVN RealStar Advisors Page 18

Demographics Map POPULATION 1 MILE 3 MILES 5 MILES Total population 8,251 63,249 134,395 Median age 45.1 38.8 38.3 Median age (male) 44.2 38.1 37.7 Median age (Female) 46.4 39.2 39.0 HOUSEHOLDS & INCOME 1 MILE 3 MILES 5 MILES Total households 3,523 24,721 51,556 # of persons per HH 2.3 2.6 2.6 Average HH income $67,639 $74,629 $76,965 Average house value $199,490 $240,244 $241,707 * Demographic data derived from 2010 US Census THE INN AT RIO RANCHO HOTEL & CONFERENCE CENTER 1465 RIO RANCHO DR SE RIO RANCHO, NM 87124 SVN RealStar Advisors Page 19

5 ADVISOR BIOS 1465 Rio Rancho Dr SE Rio Rancho, NM 87124 THE INN AT RIO RANCHO HOTEL & CONFERENCE CENTER 1465 RIO RANCHO DR SE RIO RANCHO, NM 87124 SVN RealStar Advisors Page 20

Advisor Bio & Contact 1 DAVID LANEY Executive Director 10789 N. 90th St. Suite 203 Scottsdale, AZ 85260 T 480.626.0142 C 505.286.2060 david.laney@svn.com AZ #BR629946000 PROFESSIONAL BACKGROUND David Laney is the Executive Director for SVN/RealStar Advisors, office based in Scottsdale, Arizona. Mr. Laney brings to the office over 22 years of commercial real estate brokerage and property management experience. Mr. Laney has completed over $215 Million in combined transactions conducted in both of the states of Arizona and New Mexico. Mr. Laney provides his clients with the expertise in sales and leasing marketing strategies to create the maximum values for properties in the market. Mr. Laney also assist owners in finding commercial financing when necessary by reaching out to various lenders to give further insight and valuations of the properties. Mr. Laney prides himself as a "problem solver," consulting with clients to discover their future personal and business goals in order to create possible exit strategies for the disposition of assets when the timing is right for the client. Mr. Laney's areas of focus include commercial investment properties, with further specialization of selling self storage businesses. He is originally from Tulsa, Oklahoma and attended the University of Oklahoma in Norman. Mr. Laney is licensed as a Designated/Qualifying Broker in both Arizona and New Mexico. EDUCATION University of Oklahoma Norman, Campus CCIM Beginners CCIM 101 CCIM 102 Appraisal Certification MEMBERSHIPS & AFFILIATIONS CCIM Candidate Arizona Self Storage Association New Mexico Self Storage Association Tempe Chamber of Commerce Scottsdale Chamber of Commerce THE INN AT RIO RANCHO HOTEL & CONFERENCE CENTER 1465 RIO RANCHO DR SE RIO RANCHO, NM 87124 SVN RealStar Advisors Page 21