W O O D H A V E N W B E N D , O R E G O N

DEVELOPMENT OPPORTUNITY IN SE BEND

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Dear prospective buyer,

It is my pleasure to present this rare development opportunity in SE Bend, Oregon. Not only is the location spectacular, I think you'll agree the following development proposal has been well-planned and thoroughly thought-out. The sellers have gone to exceptional lengths to create a development-ready project with key features that are hard to find in Central Oregon. We truly believe this is one of the best opportunities currently available in Bend. Although the Urban Growth Boundaries have been expanded, and you can still acquire land, the location, proximity to medical facilities, shopping, sought-after schools, as well as other key features we will outline on the following pages, all make this particular plot of land very attractive.

Bend continues to be one of the top relocation destinations in the United States, driving the demand for multi-family housing. Since 2012, rental vacancy rates in Central Oregon have consistently stayed under 2%, with the most recent data for Bend showing just a 1.04% vacancy rate. Savvy investors have been buying up multi-family complexes in Bend, resulting in a record-breaking $45.5 million dollar apartment complex sale in July of this year.

The City of Bend's 20-year comprehensive plan is calling for even more growth, with an urban area population expected to reach 110,000 persons by 2028, and an unprecedented need for multi-family housing due to both growth and demographic factors. Additionally, Bend is the regional trade and service center for Central Oregon. More than two-thirds of all the jobs in the county are in Bend. The wide range of retail businesses, professional and trade services and specialty trades draws in customers from a five-county area.

We'll delve into the numbers more on the following pages, and provide you with the necessary information to make an informed decision. I would personally like to extend an invitation to connect if you have additional questions and look forward to the opportunity to present this great opportunity to you in the near future.

Sincerely, Gary Clow, Broker 541-408-4498 THE LAND

6 1 6 5 9 D A L Y E S T A T E S D R I V E | B E N D , O R 9 7 7 0 2 7.99 acres | MLS:201810547 | $4,250,000

A rare opportunity to acquire 7.99 acres of development land in SE Bend with pre-approved plans for 15 buildings and a total of 144 units. The subdivision is comprised of (9) separate tax lots and may be developed in phases with an option to sell all or part of finished apartment complexes.

Desirable location close to shopping, sought-after schools, senior center, parks, and public transportation. Just minutes from Highway 97, the Old Mill District, and Downtown Bend.

The land has (8) income-producing structures on them currently. Value is in the land only.

The major fortunes in America have been made in land. – W O O D H A V E N B E N D , O R E G O N John D. Rockefeller W BEND STATISTICS AND GROWTH PROJECTIONS ABOUT BEND, OREGON

Bend is located on the eastern edge of the Cascade Range along the Deschutes River. Here the Ponderosa Pine forest transitions into the high desert, characterized by arid land, junipers, sagebrush, and bitter-brush. Originally a crossing point on the river, settlement began in the early 1900s. Bend was incorporated as a city in 1905. Economically, it started as a logging town but is now identified as a gateway for many outdoor sports, including mountain biking, fishing, hiking, camping, rock climbing, white-water rafting, skiing, paragliding, and golf. In 2015, Men's Journal ranked Bend as one of The 10 Best Places to Live Now. Bend is also home to the last remaining Blockbuster LLC store in the United States.

Tourism is one of Bend's largest sectors. The Mount Bachelor ski resort brings in tourists from all over Oregon, Washington, and California. The nearby Cascade Lakes are also a large draw for tourists. Recreational activities include downhill and cross-country skiing, hiking, biking, rafting, golfing, camping, fishing, picnicking, rock climbing, and general sightseeing. Transient room tax revenues through the first quarter of the fiscal year 2015 equaled $2,221,610. The transient room tax is used in partnership with Visit Bend and the Bend Economic Development Advisory Board to convert visitors to Bend into residents and business owners. In 2011, Visit Bend reported that families are the largest demographic that visit Bend (35%), while couples with no children make up the second largest portion (24%) of visitors to the city. During the same year, tourism generated $570 million and employed 16% of the city's workforce. Bend is also home to the Deschutes Brewery, the 8th largest craft brewery in the nation and the largest of over a dozen microbreweries in the city. Each year the city hosts many events celebrating its brewing culture including: The Bend Oktoberfest, The Little Woody Barrel Aged Brew and Whiskey Fest, Bend Brewfest, and Central Oregon Beer Week. Beer aficionados can also visit many of the breweries along the Bend Ale Trail. Since 2004, Bend has also hosted one of the top indie film festivals in the nation, The Bend Film Festival.

In 2005, Bend's economic profile comprised five industry categories: tourism (7,772 jobs); healthcare and social services (6,062 jobs); professional, scientific and technical services (1,893 jobs); wood products manufacturing (1,798 jobs); and recreation and transportation equipment (1,065 jobs).

Much of Bend's rapid growth in recent years is also due to its attraction as a retirement destination. The rapid population growth has fostered organizations such as Central Oregon Landwatch and Oregon Solutions.

Bend has also become a commuter town for a number of tech workers in the San Francisco Bay Area and Seattle metropolitan area despite the extreme commute, due to its appeal to the outdoors as well as its relatively cheap cost of living compared to the skyrocketing rent and housing prices of the Bay Area and Seattle. Bend continues to grow, thanks in part to massive media attention, including:

Best Performing Small City (2016 & 2017)- Milken Institute

25 Best Towns of 2017- Outside Magazine

#5 on The Top 10 Boomtowns of 2016- SmartAsset

14 of the Coziest Small Mountain Towns to Visit in Winter- Harper's Bazaar

"Love Beer? Here's Where You Should Go Next"- Travel + Leisure

Bend, Oregon, is becoming a commuter town for Silicon Valley despite the 10-hour drive- CNBC

What is bringing people to Bend?

▪ Job Growth ▪ Climate & Weather ▪ Strong Entrepreneurship Culture ▪ Family- Friendly Lifestyle ▪ Outdoor Recreation ▪ Lower Cost of Housing ▪ Arts & Culture Scene ▪ Shorter Commute Times (Average 16 ▪ OSU Cascades minutes) THE CITY OF BEND IS PLANNING FOR GROWTH

Growth projections and housing needs *Bend Urban Growth Boundary information addresses a period of 20 years, beginning in 2008 through 2028 Population forecast for 2028 115,063 (-) Less population on 7/1/08 76,551 (=) New population 2008-2028 38,512 (- Less population in group quarters (2.3%)(=) 886 New population in households 37,626 (/) Divided by household size (2.4) (+) Equals new occupied housing units 15,678 (+) Vacancy factor (6.4%) 1,003 = NW housing units 2008-2028 16,681

projected Housing needs based on type # of units % of new units Single- Family Detached 9,175 55% Single-Family Attached 1668 10% Multi-Family 5,838 35% Total 16,681 100% WHAT THE CITY OF BEND IS DOING TO PLAN

Comprehensive plan updates & zone changes Urban Growth Boundary expansions Infrastructure planning (water, sewer, transportation) DEVELOPMENT OPPORTUNITIES

Infill Development Compact Development Reduced Vehicle Miles Traveled Vertical Mixed Use Mixed Use Centers Neighborhood Commercial Complete Communities ABOUT WOODHAVEN

W O O D H A V E N B E N D , O R E G O N W 7A.cr9es9 2-stor1y b5uildings re1nt4al 4units

Daly Estates Investments LLC ("DEI") was formed in 2006 to purchase land in Bend, Oregon for a residential housing development. The initial acquisition was 6.65 acres, subsequently, an adjacent property was acquired bringing the total to 7.99 acres for development. Currently, the property has 4 duplexes and 3-single-family homes on it. Each is rented on a month-to-month basis. The value is in the land.

The original concept behind the DEI land acquisition was to produce 44 single-family home lots. During the economic downturn, it became apparent that to ensure a return on investment (ROI), a higher density of buildable lots were needed to accomplish this, the property was up-zoned from single=family usage (RS) zoning to multifamily usage (RM) zoning.

The new zoning allowed DEI the ability to design an apartment building complex which consists of 15 separate 2- story buildings. The project is named Woodhaven. The buildings are a mix of 4, 8, and 12-plex structures totaling 144 rental units which represent 166,856 square feet of habitable space. The individual buildings are clustered on 8 separate tax lots which means you have the ability to sell individual lots if desired. The current building configuration is as follows::

1 bedroom3, 8277 SF units 2 bedroom8, 18,182 SF units 3 bedroom2, 1,4449 SF units The one bedroom unit buildings have the ability to be redesigned, without changing their exterior footprint, so that they become two bedroom units. This would allow for a different mix of units then the current layout if more two-bedroom units were desired. Changing two of the one bedroom buildings to two bedroom buildings would result in the following unit count:

1 bedroom1, 8677 SF units 2 bedroo1m,0 1,1482 SF units 3 bedroom2, 1,4449 SF units

The design and approval process can be quite lengthy with the city of Bend. There is a distinct advantage to the purchase of a project with the city approvals in hand. This is especially important when it comes to sewer requirements. The current plans for Woodhaven have been approved by the city.

Development Highlights: Pre-approved plans Flat land (extremely hard to find in Central Oregon) Located in Avion Water District Great central location Close to shopping, desirable schools, parks, senior center, public transportation Within 5 minutes of The Old Mill, Downtown Bend, Highway 97, and OSU-Cascades EXTERIOR RENDERINGS & SITE MAPS

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FLOORPLANS W O O D H A V E N W B E N D , O R E G O N

DEVELOPMENT OPPORTUNITY IN SE BEND

• 7 . 9 9 A C R E S R M L A N D • 1 4 4 U N I T S • 1 5 B U I L D I N G S • 9 T A X L O T S • D E S I R A B L E S E B E N D L O C A T I O N L I S T I N G P R E S E N T E D B Y G A R Y C L O W , B R O K E R

My background in helping to purchase or sell real estate with an emphasis on securing the proper financing is paramount to a successful transaction. Whether your needs are residential, investment property or building your new home with my skills and experience I am confident that I will make your real estate experience pleasurable.

Gary moved to Central Oregon in 1987 when he purchased the Suttle Lake Resort and Marina, west of Sisters Oregon, which he owned and operated through 1991. He has been engaged in real estate and finance since the 1980s as a licensed realtor, licensed building contractor, real estate developer, banker, and mortgage broker. In addition to working directly with clients in real estate sales, retail mortgage, he has had experience in mortgage wholesale lending and a former owner of two mortgage companies and as an executive with financial institutions.

Gary has also held building contractor licenses in Oregon and California and is currently a member of the Central Oregon Association of Realtors and was 5 4 1 - 4 0 8 - 4 4 9 6 | G C L O W @ T O T A L - P R O P E R T Y . C O M previously involved in the Oregon Association of Mortgage Professionals, the statewide trade association representing the profession. While serving as a contractor in California, he also held a top security clearance to work in the aerospace industry.

G A R Y I S A F F I L I A T E D W I T H T O T A L P R O P E R T Y R E S O U R C E S , L L C . L I C E N S E D I N T H E S T A T E O F O R E G O N . Total Property Resources, LLC 547 SW 13th St., Suite 201 Bend, OR 97702 541-330-0588