ACEQ INVESTMENT Inc. Property Offering:

ACEQ INVESTMENT Inc. Property Offering: Approximately 1.25 Acres In the Vicinity of 4th Street West & Avenue K12 In Los Angeles County APN: 3128-006-002

The Antelope Valley The Antelope Valley expands over two counties, Los Angeles and Kern County. It s surrounded by the Sierras to the north and the San Gabriel Mountains to the south, Antelope Valley is located northeast of the city of Los Angeles and covers the northern portion of Los Angeles County and the southeastern portion of Kern County. The Valley covers an area of approximately 3,000 square miles, about the size of Connecticut, and has a population of 446,342 and is expected to reach 780,504 by 2020 (GAVEA Economic Roundtable Report, 2007). This desert landscape, dotted with sage and dense groves of Joshua trees, is home to four incorporated cities Lancaster and Palmdale in Los Angeles County, and Tehachapi and California City in Kern County as well as several smaller unincorporated areas like Del Sur, Lake Los Angeles, Lake Hughes, Leona Valley, Littlerock, Pearblossom, Quartz Hill, Sun Village, and Rosamond. And these cities are growing. Based on US Census data, from 2000 to 2007, the population of Lancaster grew from 118,718 to 143,818, and the population of Palmdale grew from 116,670 to 145,468. The Valley is connected by a network of highways and roads. Freeway 14, heading north-south, connects California City in the north with Lancaster and Palmdale in the south and leads over the San Gabriel Mountains to Los Angeles. Highway 138, heading east-west, connects Interstate-5 on the western edge of the Valley with Victorville in San Bernardino County in the east. Smaller streets exist or are planned to be built every one-mile with streets running east-west lettered alphabetically and streets running north-south numbered chronologically. In addition to driving, there is a local bus service (Antelope Valley Transit Authority) and several airports Fox Field Airport and L.A./Palmdale Regional Airport located in Lancaster and Palmdale, respectively. And, just approved by California voters, by 2030, a high speed train will connect Lancaster and Palmdale with the San Francisco Bay Area and the city of Los Angeles. The earliest employment opportunities in the Valley were farming related but are now focused largely around aerospace. Edwards AFB was established in 1933 and was the site of many important aeronautical accomplishments like the first flight to break the sound barrier. Later in 1952, Plant 42 was built in northeast Palmdale and is home to Lockheed Martin, Boeing, Northrop Grumman, and BAE Systems, among other aerospace-related companies. As people have moved to the Valley to work for the growing aerospace industry, housing tracts were built in the middle of the Valley, pushing most farming operations farther to the west and east. The growing population has fueled the growth of service industry jobs and shopping, cultural, and business centers. Palmdale s Antelope Valley Mall is a main attraction as are several golf courses, parks, and museums. Antelope Valley is positioned at the center of growth with its abundance of land, efficient transportation, proximity to major cities, and home to its own growing industries. Data shown is obtained from sources deemed reliable. It has not been verified and its accuracy is not guaranteed by the source, ACEQ INVESTMENT INC., its representatives and Brokers/Agents. Photo provided without verification, may not represent current conditions. Date and origin of photo are not available. Map is not to scale and locations are approximate. ACEQ INVESTMENT INC. reserves the right to correct any unintended errors

In the Antelope Valley, the growing population has fueled the growth of service industry jobs and shopping, cultural and business centers. It is a pro-business environment. It is considered as one of the largest consumer of energy in the world, making it an ideal location for renewable energy manufacturers. Retail is anchored by the Antelope Valley Mall in Palmdale and the Power Center in Lancaster. Home Depot, Best Buy, Costco, Staples, Macy s, Harris, Sears, Circuit City, Target, Wal-Mart, and K-Mart are a few that have invested. Rite Aid and Michael's have huge warehouses at Fox Field, creating massive distribution centers for their respective product lines. Major auto dealers are located in the Auto Malls of Lancaster & Palmdale and considered to be the largest in the region. For a higher education, the Antelope Valley has several options. The University of Antelope Valley, California State Polytechnic University, California Institute of Technology, California State Polytechnic University, Devry University, Pepperdine University s Graziadio School of Business and Management, Purdue University College of Engineering, University of Phoenix and West Coast Baptist College are all located locally. Developers building new homes in the Antelope Valley include U.S. Home, Beazer, Harris, Kaufman & Broad, Rancho Vista Development, Barratt, Inco, Granite, & David Spiegel & Assoc. KB Home in its Alamosa community began construction on a new earth-friendly prototype home in late March 2010. They have utilized BYD s solar, battery, LED Lighting systems and an electric vehicle outlet. The Antelope Valley s local parks include the Marie Kerr Park, Best of the West Softball Complex and Palmdale Amphitheater. The Pelona Vista Park, Palmdale's largest park, offers multiple soccer and baseball fields on 73 acres. Golf courses include the public 9-hole Desert Aire Golf Course, the 18 hole Rancho Vista and the private Antelope Valley Country Club. Also included are the Clear Channel Stadium, Antelope Valley Fairgrounds, Oasis Recreation Center and Dry Town Water Park. LA/Palmdale Regional Airport is located in Lancaster and Palmdale, the heart of Antelope Valley. It is home to two military bases, Edwards Air Force Base and China Lake Naval Reserve, the Mojave Air & Spaceport, and many supporting aerospace companies. It is the world leader in aerospace since the 1950 s. Boeing, Lockheed-Martin, Northrop-Grumman, Rockwell, BAE Systems, and even Lockheed's top secret Skunk Works are all located in Palmdale. Chuck Yeager broke the sound barrier at Edwards Air Force Base in the late 1940's. The B-1 and B-2 bombers were both built in Palmdale, as well as the first Space Shuttle in the 1980's. The X-33, the next generation space shuttle, is currently being developed. Data shown is obtained from sources deemed reliable. It has not been verified and its accuracy is not guaranteed by the source, ACEQ INVESTMENT INC., its representatives and Brokers/Agents. Photo provided without verification, may not represent current conditions. Date and origin of photo are not available. Map is not to scale and locations are approximate. ACEQ INVESTMENT INC. reserves the right to correct any unintended errors

APN 3128-006-002 Vicinity 4th Street West and Ave. K12 (According to Assessor Map) Los Angeles County Area Lancaster Zoning LRMU-E Gross Acres 1.25 Net Acres 1.25 Price per Gross Acre $176,000.00 Price per Net Acre $176,000.00 Total Price $220,000.00 Units 4 Price per Unit $55,000.00 Note: LRMU-E = City of Lancaster, Mixed Use Employment Features Parcel is flat topography, close to Costco Wholesale and many apartment homes. It is located in the vicinity of paved Avenue L and 5 th Street West. Meanwhile, the parcel is only a quarter mile west from the Sierra Highway. The developed traffic system facilitates the life with Colleges, Elementary Schools, hospitals, city parks and Supercenter/Supermarket within 2 miles. Sewer, water, phone and electricity are available at both Avenue L and 5 th Street West. The area is being promoted for mixed use development, and the General Plan has zoned this parcel as Mixed Use Employment (LRMU-E). Purposes of the Mixed Use zones: Mixed Use-Employment (MU-E). This zone is intended to provide an area for non-retail employment uses in close proximity to residential uses. Mixed use employment development would typically include multi-family residential uses in conjunction with office professional, business park-type, and some light industrial uses. This zone is not intended for heavier industrial uses. Full details are available in the Disclosure Save Report included in this property offering. Located in a bond assessment district for Los Angeles County Regional Park and Open Space. The bonds are used to finance the acquisition and construction of certain public facilities benefiting the properties in the district. Additional Costs Estimates - According to Los Angeles County Assessor Estimated Property Tax (1.25%) $2,750.00 Annual estimate, taxes due in two installments for term of ownership - http://ttc.lacounty.gov Additional costs are estimates only and are subject to change by the county upon reassessment of value and / or change of ownership. Additional cost estimates are to the best of ACEQ's knowledge. Seller is not liable for any discrepancies of additional cost. Data shown is obtained from sources deemed reliable. It has not been verified and its accuracy is not guaranteed by the source, ACEQ INVESTMENT INC., its representatives and Brokers/Agents. Photo provided without verification, may not represent current conditions. Date and origin of photo are not available. Map is not to scale and locations are approximate. ACEQ INVESTMENT IN C. reserves the right to correct any unintended errors

5 th Street West ACEQ INVESTMENT INC. Parcel Avenue L or omissions

Parcel Photo provided without verification, may not represent current conditions. It has not been verified and its accuracy is not guaranteed by the source, ACEQ INVESTMENT INC., its representatives and Brokers/Agents. Date and origin of photo are not available. Map is not to scale and locations are approximate. ACEQ INVESTMENT INC. reserves the right to correct any unintended errors or omissions.

Parcel

Division Street 5 th Street East 5 th Street West 10 th Street West 15 th Street West 20 th Street West ACEQ INVESTMENT INC. Home Depot Antelope Valley Hospital Antelope Valley Center Shopping Starbucks, UPS, Dollar Tree, Denny s Miller Elementary School Toys"R"Us 24 Hour Fitness Target Supermarket Lowe's Home Improvement Storages W Avenue K Lancaster Auto Mall Parcel Redbox Kaiser Permanente Lancaster Medical Offices Costco Wholesale Montecito s U-Haul W Avenue L DMV

5 th Street West ACEQ INVESTMENT INC. Parcel W Avenue L

At Lot NW Conner Face Southwest Zooming Kaiser Hospital At Lot NW Conner Face Southwest At Lot NW Conner Face North At Lot NW Conner Face North (Zoom In)

At 5th W and Ave K14 Face to Northeast At 5th W and Ave K 14 Face South At Lot NW Conner Face West At Lot NW Conner Face East at Industrial Park

New Development Subject Parcel The Promenade at Amargosa Creek is a new 115-acre, mixeduse development currently in the planning stages. The Center will be located in the thriving 10th Street West corridor surrounded by Lowe s Home Improvement Warehouse, Target, Costco Wholesalers and the Lancaster Auto Mall. Couple of chain commercial stores has passed the planning and entitlement.

Subject Parcel Subject parcel is only 100 feet to the Promenade at Amargosa Creek. Situated at the southern end of Lancaster, about a mile north of Palmdale, a series of north-south connections support convenient access and visibility. Nearby, Highway 14 serves as both a local and regional connection, while Sierra Hwy and 10 th Street West connect the site with Downtown Lancaster located about 2 miles to the north. These routes also serve as major commercial corridors, while much else of the area is occupied by low density residential use or vacant land. The City s largest public park accommodating numerous recreational activities and events is located directly west of the project site.

5 th Street East 10 th Street West 15 th Street West Division Street 20 th Street West 5 th Street West ACEQ INVESTMENT INC. Home Depot W Avenue K Subject Parcel W Avenue L DMV

5 th Street East 10 th Street West 15 th Street West Division Street 20 th Street West 5 th Street West ACEQ INVESTMENT INC. Home Depot Antelope Valley Hospital Starbucks, UPS, Dollar Tree, Denny s Miller Elementary School Redbox Antelope Valley Center Shopping Toys"R"Us 24 Hour Fitness Kaiser Permanente Lancaster Medical Offices Target Lowe's Home Supermarket Improvement Lancaster Auto Mall APN: 3128-005-008 Sold: $229,200.00/Acre Subject Parcel APN: 3128-006-002 $176,000.00 /Acre Costco Wholesale APN: 3130-024-036 Sold: $194,871.79/Acre APN: 3128-005-003 Sold: $228,000.00/Acre APN: 3128-005-006 Sold: $233,600.00/Acre Montecito s DMV Storages APN: 3128-005-005 Sold: $214,400.00/Acre APN: 3128-005-022 Sold: $233,600.00/Acre APN: 3128-006-022 Sold: $215,600.00/Acre APN: 3128-006-018 Sold: $220,000.00/Acre U-Haul APN: 3128-006-050 Sold: $220,588.24/Acre W Avenue K LA County Offices W Avenue L

ACEQ Investment Inc. The Comparative Market Analysis (CMA) of this property includes all Greater Antelope Valley Association of Realtor s (GAVAR) MLS Active, Pending, and Sold listings as we find this to be the most reliable source of verifiable data available (comparables collected within a one mile radius). Market Data as of 3/22/2018 APN 3128-006-002 Vicinity 4th Street West & Avenue K12, Lancaster, CA (According to Assessor Map) Area Los Angeles County - Antelope Acres Zoning LRMU-E Gross Acres 1.250 Net Acres 1.250 Price per Gross Acre $176,000.00 Price per Net Acre $176,000.00 Subject Total Price $220,000.00 Unit 4 Price per Unit $55,000.00 $400,000.00 $300,000.00 $200,000.00 $100,000.00 $0.00 Active Price per Acre Active Lot Asking Price Listing # APN Street Ave Size Zoning Total Per Acre Date 1 3126-031-038 Division K2 2.180 LRSP80-02 $389,900.00 $178,853.21 02/03/17 2 3125-003-019 17 W K2 0.460 LRC $89,900.00 $195,434.78 02/03/18 3 3140-017-039 Division J12 2.620 LRCPD $550,000.00 $209,923.66 04/28/17 4 3130-024-006 Sierra Hwy J13 3.300 LRC $750,000.00 $227,272.73 10/13/17 5 3128-006-010 4 W K12 1.250 LRMU-E $285,000.00 $228,000.00 10/25/17 6 3128-006-059 5 W K12 1.070 LRMU-E $399,000.00 $372,897.20 07/01/15 1.813 $410,633.33 $235,396.93 Sold Lot Sale Price Sale # APN Street Ave Size Zoning Total Per Acre Date 1 3130-024-036 Sierra Hwy W J12 1.950 LRC $380,000.00 $194,871.79 03/03/17 2 3128-005-005 4 W K8 1.250 LRMU-E $268,000.00 $214,400.00 08/11/16 3 3128-006-022 4 W K12 1.250 LRMU-E $269,500.00 $215,600.00 05/17/16 4 3128-006-018 4 W K12 1.250 LRMU-E $275,000.00 $220,000.00 09/26/16 5 3128-006-050 4 W K12 1.020 LRMU-E $225,000.00 $220,588.24 06/13/17 6 3128-005-003 4 W K8 1.250 LRMU-E $285,000.00 $228,000.00 08/24/16 7 3128-005-008 5 W K8 1.250 LRMU-E $286,500.00 $229,200.00 01/11/18 8 3128-005-022 4 W K8 1.250 LRMU-E $292,000.00 $233,600.00 11/29/17 9 3128-005-006 4 W K8 1.250 LRMU-E $292,000.00 $233,600.00 03/24/17 1.302 $285,888.89 $221,095.56 Notes LR City of Lancaster MU-E - Mixed Use Employment SP80-02 - Specific Plan C - Commercial CPD - Commercial Planning Development Zoning designations shown are obtained from the following sources: Lancaster Zoning Map, adopted 10/13/98, Ordinance No. 743.1; updated through 2/13/04, Ordinance No. 825; supplemented with Fox Field Specific Plan information taken from the Lancaster General Plan Map, adopted 10/28/97, Resolution 97-102; updated through Resolution No. 03-468. City of Palmdale Zoning map, adopted 12/14/94; updated 9/13/04, Ordinance #1248. Los Angeles County General Plan: A. V. Area Plan, adopted 12/4/86; updated through 7/27/99 (LP93-021); printed 2/7/02. First American Real Estate Solutions: May 2010 database of property characteristics, ownership, sale, and tax database via Win2Data.

ACEQ Investment, Inc. Important Disclosure: Data shown is obtained from sources deemed reliable such as, the local Association of Realtors and its Multiple Listing Service, the City and County official records, Chamber of Commerce, Greater Antelope Valley Economic Alliance and numerous local real estate and general publications. All data including lot sizes, boundaries, land-use and zoning data, availability of utilities, access and easements, market data and prices, sales information and maps are un-audited and have not been verified. The information is deemed reliable but its accuracy is not verified or guaranteed by the sources mentioned above or ACEQ Investment Inc., its representatives, employees and Brokers or Agents. The data may or may not contain all market activity in the area. The information is provided only to assist interested parties in their consideration of a long term speculative purchase to meet their needs. However, verification of all opinions, facts, data and information is advised and acquisition of additional information deemed necessary is recommended, as it would be with any important financial decision. Data is subject to change, revision and/or correction without notice. Any and/or all properties are subject to prior sale, price change or withdrawal without notice. In case of prior sale, substitute property to be designated for approval by parties within two business days. ACEQ Investment, Inc. 20065 Stevens Creek Blvd., Bldg. C, Ste. 1C Cupertino, CA95014 Tel: 408-703-5360 Fax: 408-517-0422