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El Dorado Exclusive Offering Memorandum

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El Dorado Exclusive Offering Memorandum E WALNUT AVE N ESPLANADE ST EL DORADO EXCLUSIVE OFFERING MEMORANDUM ±4.4 ACRES OF INFILL LAND ZONED RESIDENTIAL | ORANGE, CA EL DORADO ORANGE TABLE OF CONTENTS EXECUTIVE SUMMARY MARKET INFORMATION Opportunity 4 Demographics Summary 27 Property Positioning 5 For Sale Market Summary with Comps and Map 28 Offering Guidelines 6 Links LOCATION To view all links within this offering memorandum please click the Local Map 8 following: El Dorado - Orange Regional Map 9 Area Attractions 10 Aerials 11 Tax Map 12 DEVELOPMENT SUMMARY Development Overview 14 General Plan and Zoning 15 General Plan Land Use Map 16 Zoning Map 17 Site Plans 18 AREA OVERVIEW Orange County Overview 21 City of Orange 23 Area Amenities: Hip Place to Shop, Eat and Have Fun 24 Transit Map 25 EXECUTIVE SUMMARY EL DORADO ORANGE | EXECUTIVE SUMMARY EXECUTIVE SUMMARY OPPORTUNITY PROPERTY HIGHLIGHTS: The ±4.4-acre El Dorado property offers builders and developers an opportunity to purchase a large infill site with some time to secure approvals • Rare large infill site in central Orange County for a new home community. Based on preliminary feedback from city staff, the city supports a redevelopment in compliance with the existing single • Favorable residential zoning for single family detached homes family detached home zoning. • Seller is willing to provide some time to process approvals The project could yield up to 26 units at 6.2 DU/acre without a density bonus. This product would be for-sale single family detached homes. The • Strong socioeconomic demographics in this submarket project could yield up to 44 units when the State Density Bonus Law is utilized but the developer would need to include some affordable housing • Lack of new home supply drives new home demand and pricing to secure the 35% density bonus. Based on recent market and financial analysis, the 44-lot project is the highest and best use for this site. • With OC’s FHA loan limit at $726,525, homes should qualify for attractive financing (FHA is available for homes built using the State El Dorado property has been owned by a family trust since 1962. The Density Bonus Law) property was vacated by the school operator in June of 2019, and well- positioned to be redeveloped without the need to relocate tenants. • Flat and rectangular site for efficient land planning • Strong local economy generating jobs and a need for housing • Close to shopping, restaurants, jobs, transportation and regional LOCATION: Northeast corner of E Walnut Ave and N destinations Esplanade St JURISDICTION: City of Orange in Orange County 100% ENTITLEMENTS: Unentitled PROPERTY CONDITION: Sold vacant “as-is” PRODUCT TYPE: Single Family Detached 4 EL DORADO ORANGE EL DORADO ORANGE | EXECUTIVE SUMMARY PROPERTY POSITIONING NEW HOME COMMUNITIES HAVE FOUND HIP LOCATION ATTRACTS FIRST-TIME BUYERS SUCCESS IN ORANGE AND MILLENNIALS El Dorado offers a developer the rare opportunity to build detached homes Orange has earned a reputation for being progressive, especially when in a market dominated by urban townhomes and high-density apartments. it comes to entertainment and dining. This is especially important to a Rather than compete head-to-head with three-story townhome communities population with an average age of only 35.2 years old. Young first-time without private yards, a builder will have the competitive advantage of home buyers and Millennials put a premium on access to hip local dining building two-story single family homes that can be purchased utilizing FHA and entertainment. Orange is attractive to them because it has some of the financing (FHA is available for homes built using the State Density Bonus most sought-after restaurants and eateries in town including the Orange Law). This should result in strong absorption and significant pricing power. circle. CONVENIENT ACCESS TO JOB CENTERS Centrally located in Orange County, is ideal for commuters to job centers in any Orange County city or Inland Empire and Los Angeles. Interstate 5, Highway 91, 55, and 57, all provide convenient access to/from Orange and nearly all of major employment centers within 25 miles. In addition, the city’s local job base provides a strong economic foundation for the future job growth projected to be 39% by 2028. This growth is fueled by the city’s top employers: Disneyland, Kaiser Permanente, City of Anaheim, Northgate Gonzales Market, Hilton Anaheim, CashCall, Anaheim Regional Medical Center, Angles Baseball, Anaheim Marriott Hotel and Main Place DMS Facility. With 2017 having the fastest growth rate since 2012, the county’s household income growth rate of 5% helped add over $10 Billion to the local economy. 100% 5 EL DORADO ORANGE EL DORADO ORANGE | EXECUTIVE SUMMARY EXECUTIVE SUMMARY OFFERING GUIDELINES PRICE Submit offers, asking price has not been established. Seller will be DEPOSITS Buyer to open escrow with a refundable deposit. Upon approval evaluating offers based on the combined aspects of the price, structure and of the feasibility period the deposit shall be increased and will become non- timing of deposits and the timing for the close of escrow. Seller is seeking a refundable and applicable to the purchase price. Offers are encouraged to high degree of certainty in the overall structure that the buyer will perform in provide a non-refundable commitment to the purchase as soon as possible. If accordance with the timing for the proposed close of escrow. an extended close of escrow is presented the offer should include quarterly deposits to be released to seller of at least Fifty Thousand Dollars ($50,000.00). OFFER PREPARATION Submit a Letter of Intent (“LOI”) outlining the terms and conditions under which Buyer proposes to acquire the property. CONDITION OF PROPERTY AT CLOSE OF ESCROW Seller to deliver property “as-is” with no representations or warranties from the seller. Information provided TERMS All cash at the close of escrow. is intended to assist a buyer in evaluating the property, but buyer should not rely on anything other than its own due diligence. FEASIBILITY PERIOD a Buyer will have a feasibility period that starts with a SELLER KENNETH J CUMMINS AS TRUSTEE OF THE GLORY B LUDWICK signed LOI. Seller requests a feasibility period less than 60 days. REVOCABLE LIVING TRUST DUE DILIGENCE Due diligence information is available to a buyer by clicking BROKERAGE DISCLOSURE WD Land may act as Seller’s agent for more than the following link: El Dorado Due Diligence one prospective buyer on this property. Any prospective buyer requesting WD Land to submit an offer on its behalf acknowledges the foregoing disclosures and agrees to the described agency relationships as with other prospective buyers. Pursuant to S.B. 1171, all offers on real estate in the State of California are required to be accompanied by an executed version of the Brokerage Disclosure Forms. Please fill out the forms and return them with your offer. 6 EL DORADO ORANGE LOCATION 7 EL DORADO ORANGE EL DORADO ORANGE | LOCATION LOCAL MAP EL DORADO 8 EL DORADO ORANGE EL DORADO ORANGE | LOCATION REGIONAL MAP EL DORADO 9 EL DORADO ORANGE EL DORADO ORANGE | MARKET INFORMATION AREA ATTRACTIONS MAP SHOP/DINE 1. The Outlets at Orange 1 2. Main Place Mall 3. Platinum Triangle 4. Garden Walk 5. CtrCity 6. Anaheim Packing District 7. Orange Circle 2 UNIVERSITY 1. Cal State Fullerton 2. Chapman University 5 6 TRANSPORTATION 1 1. ARTIC - Anaheim Regional 5 3 3 Transportation Intermodal 1 Center 4 4 EL DORADO 2 WELLNESS 2 7 1 1. CHOC 1 2. UC Irvine Medical Center 2 RECREATION 1. Disneyland/California Adventure 2. Knott’s Berry Farm 3. Honda Center 4. Angel Stadium 5. Convention Center 10 EL DORADO ORANGE EL DORADO ORANGE | LOCATION AERIAL EL DORADO 11 EL DORADO ORANGE EL DORADO ORANGE | LOCATION TAX MAP APN: 093-511-27 12 EL DORADO ORANGE DEVELOPMENT SUMMARY 13 EL DORADO ORANGE EL DORADO ORANGE | DEVELOPMENT SUMMARY DEVELOPMENT OVERVIEW LOCATION UTILITIES LAND USE ENTITLEMENTS n Address is 4100 E Walnut Ave. n Water - City of Orange n n APN is 093-511-27 The General Plan designates the site as Public n Trash/Recycling - CR&R Disposal n ±4.4 Acres Facilities and Institutions (PFI) and the current n Electric - Southern California Edison zoning is R1-7 Single-Family Residential. n Communications - Time Warner Cable PRODUCT n A new subdivision will require a General Plan n Gas - Southern California Gas Company Amendment, Subdivision Map and Design Single Family Detached Review approval. COST TO COMPLETE ORANGE UNIFIED SCHOOL No cost estimates have been prepared. DISTRICT IMPROVEMENT PLANS AND CONSTRUCTION DRAWINGS IMPACT FEE ESTIMATE n Esplanade Elementary School n Improvement plans have not been prepared (Great School Score: 3). City fee schedule in Due Diligence folder. and will be the buyer’s responsibility. n Santiago Middle School n Construction drawings for the building have not (Great School Score: 5). been prepared giving the buyer an opportunity TAX RATE n El Modena High School to design individual floorplans. Tax rate is 1.059%. No Mello Roos. (Great School Score: 7). n The current building plans are not in our possession and we are working to obtain them. EXISTING BUILDING Esplanade Elementary School INCLUSIONARY UNITS There are no affordable housing requirements for this community. 14 EL DORADO ORANGE EL DORADO ORANGE | DEVELOPMENT SUMMARY GENERAL PLAN AND ZONING GENERAL PLAN DESIGNATION The General Plan designates the site as Public Facilities and Institutions (PFI). The General Plan designation does not conform to the zoning so a General Plan Amendment would be needed for a residential subdivision. RESIDENTIAL ZONING The site is currently zoned R1-7: Single-Family Residential allowing a single- family residential subdivision with a minimum lot area of 7,000 square feet (i.e.
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