CONFIDENTIAL OFFERING MEMORANDUM This Investment Memorandum (“Memorandum”) is furnished to prospective purchasers solely to facilitate the purchaser’s consideration of the property known as Smokey Trail Apartments (510 Smokey Trail Drive) located in Limon, CO (“Property”). The Memorandum contains proprietary information and was prepared by Olive Real Estate Group, Inc. using information compiled from sources we consider to be reliable. However, the Seller makes no representations or warranties herein and the building is being sold in an “as is, where-is” condition. By receipt of this Memorandum, you agree that: (a) the Memorandum and its contents are of a confidential nature and that you will hold and treat it in strictest confidence; (b) you will not reproduce, transmit or disseminate the information contained in the Memorandum through any means, or disclose this Memorandum or any of its contents to any other entity without the prior written authorization of Olive Real Estate Group, Inc. nor will you use this Memorandum or any of its contents in any fashion or manner detrimental to the interests of Olive Real Estate Group, Inc. or seller; and (c) upon request you will return the Memorandum without retaining any copy or extracting any portion thereof. This Memorandum does not purport to be all-inclusive or to contain all the information which prospective purchasers may desire. Certain documents, including leases and other materials, are described herein in summary form. The summaries are not complete descriptions of the full agreements. Interested parties are expected to review all such documents independently. Financial projections are provided for reference purposes only and are based on assumptions relating to the general economy, competition and other factors beyond the control of Olive Real Estate Group, Inc. and are, therefore, subject to material variation. Additional information and an opportunity to inspect the Property will be made available to qualified prospective purchasers upon request. Each purchase offer is to be based strictly and entirely upon the purchaser’s independent investigation, analysis appraisal and evaluation of facts and circumstances deemed relevant by the purchaser. Neither Olive Real Estate Group, Inc. nor any of its respective directors, officers or affiliates have made any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of this Memorandum or its contents. This offering is submitted and received with the understanding that all offers for the acquisition of the herein described property will be conducted through Olive Real Estate Group, Inc. The sellers and Olive Real Estate Group, Inc. expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/or terminate discussions with any entity at any time with or without notice. If you have no interest in the Property at this time, please return this Offering Memorandum to: Olive Real Estate Group, Inc. 102 N Cascade Ave, Suite 250, Springs, CO 80903 HAZARDOUS MATERIALS DISCLOSURE AMERICANS WITH DISABILITIES ACT Various construction materials may contain items that have been or The United States Congress has enacted the Americans with Disa- may in the future be determined to be hazardous (toxic) or undesirable bilities Act. Among other things, it is intended to make many busi- Property includes eight and may need to be specifically treated, handled or removed. Real ness establishments equally accessible to persons with a variety of estate agents have no expertise in the detection or correction of haz- disabilities; modifications to real property may be required. Other townhome style ardous or undesirable items. Expert inspections are necessary. Current state and local laws also may mandate changes. The real estate 3 bd/1.5 ba units. or future laws may require cleanup of such materials. It is the respon- brokers in this transaction are not qualified to advise you as to sibility of the buyer to retain qualified experts to detect and correct what, if any, changes may be required now, or in the future. Bid- such matters and to consult with legal counsel of their choice to deter- ders should consult attorneys and qualified design professionals of mine if such materials are present and if so, to determine what, if any- their choice for information regarding these matters. Real estate thing, the buyer needs to do because of the presence of such materials. brokers cannot determine which attorneys or design professionals have the appropriate expertise in this area. Table of Contents

Minneapolis, MN – (March 8, 2017) – Mortenson, a leading SECTION contractor, has been selected to build what PROPERTY OVERVIEW ...... 1 will be the largest single- phase ever Property Description built in North America. Quick Facts The 600-megawatt Rush Amenities Creek Wind Project, Area Overview owned and operated by Hub City Xcel Energy, will be Lincoln County Economic Development home to 300 turbines and an 83- m i l e PRICING & FINANCIAL ANALYSIS ...... 2 transmission near Limon, Property Configuration Colo. Income & Expenses “We are pleased to be Rent & Sale Comparables selected to construct this significant project for Xcel Energy and the state of Colorado. This 5-Year Projections project is another great example of Xcel’s commitment to clean renewable energy.” said Tim Maag, vice president and general manager at Mortenson’s Wind Energy Group. FLOOR PLANS ...... 3 Mortenson’s Wind Energy, High Voltage Transmission and Civil groups will deliver full Interior Photos engineering, procurement and construction for Rush Creek. Colorado based turbine One Bedroom Layout manufacturer, , will provide the 300-V110 2.0MW wind turbines. The engineering Two Bedroom Layouts design will complete April 2017, with construction expected to begin May 2017 and an in- Three Bedroom Layouts service date of October 2018. DEMOGRAPHIC ANALYSIS ...... 4 The 600-MW Rush Creek Wind Project will be the single largest wind contract executed to date for Mortenson, as well as the largest for the state of Colorado. AERIALS ...... 5 “Mortenson has a long and distinguished history with the construction of major projects in Colorado, from the Stapleton Redevelopment to International Airport hotel and COLORADO LIVING ...... 6 transit center, to the Alamosa Solar Project. In addition, it has extensive experience in the development of wind projects throughout the U.S.,” said Gerald Kelly, Xcel Energy Project CONFIDENTIAL MEMORANDUM AND DISCLOSURES ...... 7 manager. “Mortenson also shares Xcel Energy’s commitment to providing a safe and healthy work environment. We look forward to working with Mortenson on our Rush Creek Wind Farm effort.”

The wind farm is estimated to contribute 350 jobs to the state during the peak of construction, and when complete will increase Colorado’s wind energy production by more than 20 percent and potentially generate $180 million in landowner lease payments and property tax revenue. Aerial

PROPERTY DESCRIPTION Smokey Trail Apartments provides the finest apartment living in Limon, a market with far more apartment demand than supply. The booming renewable energy sector continues to spur high income job growth, fueling further demand for quality housing. Recent exterior upgrades at Smokey Trail include eight new roofs with forty-year shingles, new four-tone exterior paint on all eight buildings and approximately 250 new windows. Unit interiors have seen significant up- grades to further enhance comfortable living in a peaceful apartment community. All units have full kitchens, full-sized washer/dryer hookups, bay windows, deck/patios and much more. Electric and gas are separately metered, allowing units to have their own furnaces and hot water heaters. Low maintenance costs resulting from the substantial interior and exteri- or upgrades are further enhanced by the Town of Limon clearing/maintaining Smokey Trail Drive, the street/cul-de-sac that runs through the complex.

PROPERTY QUICK FACTS LOCATION: 510 Smokey Trail Drive, Limon, CO 80828 NUMBER OF UNITS: 38 UNIT SIZE: 641-1,029 SF # of BUILDINGS: 8

STORIES: 2 Limon Heritage Museum BUILDING TYPE: Garden Style Apartments YEAR BUILT: 1992 BUILDING SQ FT: 29,442 SF RENTABLE SQ FT: 29,442 SF SITE SIZE: 2.908 Acres PARKING: 58 Free Surface Spaces Available 1st Inn Gold Limon PROPERTY AMENITIES • Pet Friendly • Deck/Patios • Forced air heating • Wall to Wall Carpet • Cable Ready • Close to shops, restaurants • Ceiling Fans • Washer/Dryer hookups in each unit • Dishwasher • Pet Play Area • Disposals • Storage Units • Stove, Refrigerator • Scenic Views • Newly/Renovated Interior • Bay Windows Property Overview

The following information about the City of Limon can be found on the website: www.townoflimon.com

AREA OVERVIEW People working together make Limon a special place to live and raise your family or business.

The community provides everything needed to have a quality life in a safe, close knit community.  Educational opportunities abound from Limon Child Development Center and its preschool programs through Limon Public Schools including K-12. 93.8% of Limon third graders scoring proficient or better in reading according to a Denver Post report. Academics, music, athletics and vocational education all excel. Students in band and choir often enjoy success in one of Colorado leading high school athletic programs. Morgan Community College has a satellite program in Limon providing an affordable step into higher education.  Healthcare options are strong with Plains Medical Center, a Federally Qualified Health Center (FQHC), which provides primary medical, dental and mental health services to more than 17,000 residents in a service area that extends over 5,000 square miles. Lincoln Community Hospital, located just 15 miles away is a Critical Access, Level IV Trauma Hospital. The Hospital is opening a family practice clinic in Limon this fall.  Strong cultural opportunities lead by the Limon Heritage Museum and Railroad Park, community events like Limon Heritage Celebration, 4th of July Celebration, Hub City Car Classic and a Community Christmas Celebration create a strong sense of community. Recreation opportunities abound for all ages highlighted by Doug Kissel Fishing Pond, Limon Wetlands, Limon Swimming Pool and Tamarack Golf Club.  With low housing costs as compared to the Front Range, the cost of living is reasonable and there is adequate access to retail markets and entertainment and hometown sensibility that make Limon an attractive location for today's businesses and families.  Many places of worship reflect the quality of life people enjoy in Limon.

Join our family of working folks, we're always ready to welcome newcomers!

We have strong legacy farming and we're also active in the energy sector.

Natural Resources provide a growing economic base. The development of renewable power through wind farms is a new industry.  Limon’s farming and ranching base has long provided both the economic base and the open space surrounding Limon. Farming and ranching continues to be a strong economic base but new industries are creating new opportunities and a different skyline.  Currently three wind farms are nearing completion. Cedar Point Wind Energy Projectwith 139 1.8mw turbines went on line in 2011 results in a capacity of 250mw. By the end of 2012 Limon Wind Energy CenterI and II with 125 1.6mw turbines each, will be producing 400 mw of renewable energy.  Limon gets 15 inches of rain per year. The US average is 37. Snowfall is 37 inches. The average US city gets 25 inches of snow per year. The number of days with any measurable precipitation is 82. On average, there are 251 sunny days per year in Limon. The July high is around 86 degrees. The January low is 12. Our comfort index, which is based on humidity during the hot months, is a 68 out of 100, where higher is more comfortable. The US average on the comfort index is 44.  Oil and gas production, while in its early stages of development, has grown with about 50 active well permits being developed.  The Limon region produces the basics: food, electricity and fuel for distribution around the world.

We've got the energy and the know-how to make it happen! ‘Hub City’ Limon I, II & III Wind Energy Centers

The following information about the City of Limon can be found on the website: www.townoflimon.com OVERVIEW  Located in Arapahoe, Elbert and Lincoln counties, Colorado LIMON - THE "HUB CITY" OF Built, owned and operated by a EASTERN COLORADO subsidiary of NextEra Energy Resources

 The three sites operate a total of  We're connected by Interstate 70 east to Goodland 368 GE wind turbines (109mi), Topeka (450 mi), Kansas City (500 mi),and west to Denver (eastern beltway-E-470 -75 mi; Interstate 25 -  Together, the sites have a 87 mi), Silverthorne (155 mi), Winter Park (155 mi), Frisco/ generation capacity of 600.6 Breckenridge (160/170 mi), Vail (185 mi), Steamboat megawatts Springs (245 mi), Aspen (285 mi), and Grand Junction (335 mi). Interstate 70 is the major East-West Interstate  The two projects are capable of between I-40 and I-80. generating enough electricity to  The Ports-to-Plains Corridor including US 40/287 south power more than 185,000 homes and Colorado Highway 71 to the north of Limon con- nects to Amarillo (330 mi), Lubbock (455 mi) and Dallas  Limon I and II went into service in 2012; Limon III in 2014. (700mi) to the south and Cheyenne, WY (210 mi) and Rapid City, SD and the Black Hills (390 mi) to the north without using congested highways. This corridor pro- vides an uncongested alternative to Interstate 25 and BENEFITS Interstate 35 in moving freight and people north-south .  Provides employment opportunities  Colorado Highway 71 south from Limon connects to Rocky Ford (87mi), La Junta (98mi) and Pueblo (127mi).  Adds tax base to the county  US Highway 24 is the direct shot southwest from Limon to Colorado Springs (90 mi).  Delivers landowner lease payments

A major portion of the shipping between the Mid-West and  Creates no air or water pollution the Western States rolls right through our community.  Uses no water in power generation

 Allows land to remain in agricultural use

 Supports economy through purchases of regional goods and services One, Two and Three Bedroom Renewable Energy Sector

LIMON'S RENEWABLE ENERGY SECTOR is currently ranking second in the state with a current installed production capacity of 852 MW, the wind capacity in Lincoln County is second to none. Four projects have been developed, permitted, constructed and producing. The Town of Limon is the core of the economic activity associated with these developments.

Renewable Energy Systems developed the with 139 - 1.8 MW Vestas turbines, two onsite project substations, one operations and maintenance building and more than 40 miles of overhead transmission line. The Cedar Point Project is owned by Enbridge under a power agreement with Xcel Energy. The Cedar Point Wind Farm gener- ates 252 megawatts of electricity, enough clean renewable energy to meet the power needs of about 80,000 Colorado homes.

NextEra Energy Resources developed the Limon I and Limon II Wind Energy Center which came on line in late 2012. The 400 MW facility consists of twin 200-MW projects and 125 GE 1.6 MW wind turbines. Located on more than 55,000 acres, a 45-mile-long (72 km) 345 kV transmission line connects the wind farms to the substation.

NextEra's Limon Wind III Energy Center in Colorado came into service in 2014 with an addi- tional 200 MW which will bring that total to 852 MW of installed production capacity. Limon Wind III Energy Center consists of 121 – GE 1.7 MW wind turbines located over 49,600 acres and an approximately ten miles of a 345kV transmission line running from the Limon Wind III substation to the Limon II substation.

In December, 2014, the Lincoln County Commissioners gave initial permit approval to NE- REO for the Arriba Wind Farm. This project is proposed over two phases to have an installed production capacity of 300.1 MW utilizing 176 1.7 MW GE turbines. Located in eastern Lin- coln County the project would cover 25,600 aces.

Xcel Energy Inc., on May 13, 2016, filed a plan with state regulators to build, own and oper- ate its $1 billion Rush Creek Wind Project, which includes a 300 turbine, 600-megawatt wind farm and 90-mile transmission line in eastern Colorado. The Rush Creek Wind Project, which will cover 90,000 acres, will be built in two sections. One section will be in Elbert County southwest of Limon. The other section will be southeast of Limon and cover parts of Lincoln, Kit Carson and Cheyenne counties. As proposed, the Rush Creek wind farm would be Colorado’s biggest wind farm. The trans- mission line will be built through Arapahoe, Cheyenne, Elbert, Kit Carson and Lincoln coun- ties, capable of handling 345 kilovolts of electricity. The line will move the power from east- ern Colorado to Xcel’s service territory along the Front Range. Pricing & Financial Analysis One, Two and Three Bedroom

UNIT CONFIGURATION / RENT Average Average Amt / Average Amt / Units Occupancy Units Market + Floorplan # Units SQFT SQFT SQFT % Available Addl. 1x1 15 641 $ 750.00 $ 1.17 $ 662.67 $1.03 15 100% 0 2x1 15 773 $ 850.00 $ 1.10 $ 752.00 $0.97 14 93.3% 1 3x1.5 8 1029 $ 1,000.00 $ 0.97 $ 950.63 $0.92 8 100% 0

Totals / Avgs: 38 775 $ 813.16 $ 1.05 $ 758.55 $0.98 37 97% 1

OFFERING SUMMARY

PRICE $ 3,300,000 PRICE PER UNIT $ 86,842 DOWN PAYMENT $ 825,000 PRICE PER SQFT $ 112.08 LOAN AMOUNT $ 2,475,000 PAYMENT* $ 13,683 NUMBER OF UNITS 38 NET CASHFLOW AFTER DEBT SERVICE $ 85,780 YEAR BUILT 1992 DSC RATIO 1.52 RENTABLE SQFT 29,442 PARKING 58 CAP RATE CURRENT 6.67% PARKING RATIO 1.53 CAP RATE PROFORMA 7.57% DENSITY 13.07

NET OPERATING INCOME - CURRENT $ 220,047 NET OPERATING INCOME - PROFORMA $ 249,974

CASH ON CASH RETURN - CURRENT 6.77% CASH ON CASH - PROFORMA 10.72%

FIVE YEAR IRR 26.74% UNLEVERAGED FIVE YEAR IRR 12.03%

*Based on 25% down, 25yr. amortization at 4.45% interest INCOME & EXPENSES T-12 T-3 Proforma INCOME RENT $ 306,996.91 $ 336,012.88 $ 378,216.00 VACANCY $ - $ - $ (18,910.80) PET RENT $ 3,369.20 $ 4,380.00 $ 4,800.00 TOTAL RENTS $ 310,366.11 $ 340,392.88 $ 364,105.20 CONCESSIONS $ (1,327.48) $ (120.00) $ (500.00) CONCESSIONS - CLEANING $ (904.50) $ - $ - RUBS $ 10,468.38 $ 14,776.76 $ 15,330.00 TOTAL FEES $ 11,717.20 $ 4,330.80 $ 12,627.74 MISCELLANEOUS $ 2,887.00 $ 2,887.00 $ 3,000.00 INTEREST $ 616.56 $ - $ - TOTAL OPERATING INCOME $ 333,823.27 $ 362,267.44 $ 394,562

EXPENSES AUTO & TRAVEL $ 1,058.51 $ 842.40 $ 2,455.50 CLEANING & MAINTENANCE $ 13,594.90 $ 7,577.52 $ 9,390.40 INSURANCE $ 16,194.90 $ 13,973.24 $ 13,973.40 LEGAL & PROFESSIONAL $ 8,421.55 $ 3,027.40 $ 2,500.00 MANAGEMENT $ 31,036.61 $ 31,036.61 $ 36,410.52 REPAIRS $ 6,818.49 $ 3,514.72 $ 7,132.20 SUPPLIES $ 2,545.69 $ 4,484.68 $ 3,407.10 PROPERTY TAX $ 7,886.57 $ 65.00 $ 7,870.32 UTILITIES ELECTRICITY $ 2,080.34 $ 875.40 $ 875.40 GAS $ 1,068.99 $ 739.48 $ 739.48 WATER $ 6,572.60 $ 6,572.60 $ 6,572.60 SEWER $ 1,691.21 $ 1,701.60 $ 1,701.60 GARABAGE & RECYCLING $ 5,005.18 $ 4,226.12 $ 4,281.12 TOTAL UTILITIES $ 16,418.32 $ 18,516.20 $ 14,170.20 OTHER BANK FEES $ 4.20 $ - $ - PAYROLL $ 13,806.90 $ 33,350.60 $ 9,000.00 OFFICE SUPPLIES $ (322.70) $ - $ - TOTAL OTHER $ 13,488.40 $ 33,350.60 $ 9,000.00 REPLACEMENT COST $ REPLACEMENT FLOORING $ 6,015.33 $ - $ 5,700.00 REPLACEMENT CARPET $ 1,915.21 $ 7,660.84 $ 5,700.00 REPLACEMENT APPLIANCE $ 1,483.43 $ 4,370.40 $ 2,000.00 TOTAL REPLACEMENT COST $ 9,413.97 $ 12,031.24 $ 13,400.00 REPLACEMENT RESERVES $ 11,400.00 $ 11,400.00 $ 11,400.00 TOTAL OPERATING EXPENSES $ 138,277.57 $ 139,819.61 $ 131.109.48

NET OPERATING INCOME $ 195,545.70 $ 222,447.83 $ 263,453.46

2017 CAPITAL EXPENSES CARPET $ 576.98 APPLIANCES $ 1,595.70 EQUIPMENT/TOOLS $ 201.07 REMODEL $ 35,894.38 TOTAL CAPITAL EXPENES $ 26,894.38 2017 PROJECT OVERSIGHT $ 46,490.49 2017 AUTO & TRAVEL $ 3,175.54 (RENOVATION RELATED) Five Year Projections Interior Photos FIVE YEAR PROJECTIONS Year 1 Year 2 Year 3 Year 4 Year 5 INCOME RENT $ 378,216.00 $ 389,562.48 $ 401,249.35 $ 413,286.84 $ 425,685.44 VACANCY $ (18,910.8) $ (19,478.12) $ (20,062.47) $ (20,664.34) $ (21,284.27) PET RENT $ 4,800.00 $ 4,944.00 $ 5,092.32 $ 5,245.09 $ 5,402.44 TOTAL RENTS $ 364,105.20 $ 375,028.36 $ 386,279.21 $ 397,867.58 $ 409,803.61 CONCESSIONS $ (500.00) $ (515.00) $ (530.45) $ (546.36) $ (562.75) CONCESSIONS - CLEANING $ - $ - $ - $ - $ - RUBS $ 15,330.00 $ 15,789.90 $ 16,263.60 $ 16,757.50 $ 17,254.05 TOTAL FEES $ 12,627.74 $ 13,006.57 $ 13,396.77 $ 13,798.67 $ 14,212.63 MISCELLANEOUS $ 3,000.00 $ 3,090.00 $ 3,182.70 $ 3,278.18 $ 3,376.53 TOTAL OPERATING INCOME $ 394,562.94 $ 406,399.83 $ 418,591.82 $ 431,149.58 $ 444,084.07

EXPENSES AUTO & TRAVEL $ 2,455.50 $ 2,529.17 $ 2,605.04 $ 2,683.19 $ 2,763.69 CLEANING & MAINTENANCE $ 9,390.40 $ 9,672.11 $ 9,962.28 $ 10,261.14 $ 10,568.98 INSURANCE $ 13,973.24 $ 14,392.44 $ 14,824.21 $ 15,268.94 $ 15,272.00 LEGAL & PROFESSIONAL $ 2,500.00 $ 2,575.00 $ 2,652.25 $ 2,731.82 $ 2,813.77 MANAGEMENT $ 36,410.52 $ 37,502.84 $ 38,627.92 $ 39,786.76 $ 40,980.36 REPAIRS $ 7,132.20 $ 7,346.17 $ 7,566.55 $ 7,793.55 $ 8,027.35 SUPPLIES $ 3,470.10 $ 3,509.31 $ 3,614.59 $ 3,723.03 $ 3,834.72 PROPERTY TAX $ 7,870.32 $ 8,106.43 $ 8,349.62 $ 8,600.11 $ 8,858.11 UTILITIES ELECTRICITY $ 875.40 $ 901.66 $ 928.71 $ 956.57 $ 985.27 GAS $ 739.48 $ 761.66 $ 784.51 $ 808.05 $ 832.29 WATER $ 6,572.60 $ 6,769.78 $ 6,972.87 $ 7,182.06 $ 7,397.52 SEWER $ 1,701.60 $ 1,752.65 $ 1,805.23 $ 1,859.38 $ 1,915.17 GARABAGE & RECYCLING $ 4,281.12 $ 4,409.55 $ 4,541.84 $ 4,678.10 $ 4,818.44 TOTAL UTILITIES $ 14,170.20 $ 14,595.31 $ 15,033.17 $ 15,484.16 $ 15,948.68 OTHER PAYROLL $ 9,000.00 $ 9,270.00 $ 9,548.10 $ 9,834.54 $ 10,129.58 TOTAL OTHER $ 9,000.00 $ 9,270.00 $ 9,548.10 $ 9,834.54 $ 10,129.58 REPLACEMENT COST REPLACEMENT FLOORING $ 5,700.00 $ 5,871.00 $ 6,047.13 $ 6,228.54 $ 6,415.40 REPLACEMENT CARPET $ 5,700.00 $ 5,871.00 $ 6,047.13 $ 6,228.54 $ 6,415.40 REPLACEMENT APPLIANCE $ 2,000.00 $ 2,606.00 $ 2,121.80 $ 2,185.45 $ 2,251.02 TOTAL REPLACEMENT COST $ 13,400.00 $ 13,802.00 $ 14,216.06 $ 14,642.54 $ 15,081.82 REPLACEMENT RESERVES $ 11,400.00 $ 11,742.00 $ 12,094.26 $ 12,457.09 $ 12,830.80 TOTAL OPERATING EXPENSES $ 131,109.48 $ 135,04.76 $ 139,094.05 $ 143,266.87 $ 147,564.87

NET OPERATING INCOME $ 263,453.46 $ 271,357.06 $ 279,497.78 $ 287,882.71 $ 296,519.19