LAS VEGAS HOTEL PROPERTY PRIME REDEVELOPMENT OPPORTUNITY Close to the Strip and the Convention Center

LAS VEGAS HOTEL PROPERTY PRIME REDEVELOPMENT OPPORTUNITY Close to The Strip and the Convention Center

• 150 ROOMS • PRIME LOCATION 2-3 MINUTES FROM THE LAS VEGAS STRIP • PRIME REDEVELOPMENT OPPORTUNITY CommercialSun Real Estate, Inc. Confidentiality & Disclosure

SUN COMMERCIAL REAL ESTATE, INC. (the “Broker”) has been retained on an exclusive basis to market the property described herein (the “Property”). Broker has been authorized by the Seller of the Property (the “Seller”) to prepare and distribute the enclosed information (the “Material”) for the purpose of soliciting offers to purchase from interested parties. More detailed financial, title and tenant lease information may be made available upon request following the mutual execution of a letter of intent or contract to purchase between the Seller and a prospective purchaser. You are invited to review this opportunity and make an offer to purchase based upon your analysis. If your offer results in the Seller choosing to open negotiations with you, you will be asked to provide financial references. The eventual purchaser will be chosen based upon an assessment of price, terms, ability to close the transaction and such other matters as the Seller deems appropriate.

The Material is intended solely for the purpose of soliciting expressions of interest from qualified investors for the acquisition of the Property. The Material is not to be copied and/or used for any other purpose or made available to any other person without the express written consent of Broker or Seller. The Material does not purport to be all-inclusive or to contain all of the information that a prospective buyer may require. The information contained in the Material has been obtained from the Seller and other sources and has not been verified by the Seller or its affiliates. The pro forma is delivered only as an accommodation and neither the Seller, Broker, nor any of their respective affiliates, agents, representatives, employees, parents, subsidiaries, members, managers, partners, shareholders, directors, or officers, makes any representation or warranty regarding such pro forma. Purchaser must make its own investigation of the Property and any existing or available financing, and must independently confirm the accuracy of the projections contained in the pro forma.

Seller reserves the right, for any reason, to withdraw the Property from the market. Seller has no obligation, express or implied, to accept any offer. Further, Seller has no obligation to sell the Property unless and until the Seller executes and delivers a signed agreement of purchase and sale on terms acceptable to the Seller, in its sole discretion. By submitting an offer, a purchaser will be deemed to have acknowledged the foregoing and agreed to release Seller and Broker from any liability with respect thereto.

PROPERTY WALK-THROUGHS ARE TO BE CONDUCTED BY APPOINTMENT ONLY. ACCESS IS LIMITED AND SECURED. CONTACT BROKER FOR ADDITIONAL INFORMATION.

Anders Graciano Cathy Jones, CPA, SIOR, CCIM Senior Associate CEO 702.968.7336 702.968.7320 [email protected] [email protected]

OFFERING MEMORANDUM: PRIME REDEVELOPMENT OPPORTUNITY 2 Table of Contents

Contacts Property Highlights Section 1

Property Summary & Investment Highlights Property Overview Surrounding Aerial Aerial Map

Property Description Section 2

Property Matrix Anders Graciano Site Plan Senior Associate Property Photos P (702) 968-7336 Assessor Parcel Map [email protected]

Las Vegas Highlights Section 3

Las Vegas Overview Section 4

Cathy Jones, CPA, SIOR, CCIM CEO P (702) 968-7320 [email protected]

Property walk-throughs are to be conducted by appointment only. ACCESS IS LIMITED AND SECURED. Contact Broker for additional information.

OFFERING MEMORANDUM: PRIME REDEVELOPMENT OPPORTUNITY 3 Property Summary & Investment Highlights

PROPERTY SUMMARY

Fortune Hotel Las Vegas, superbly located 8 minutes from the new Las Vegas Raiders Stadium, 5 minutes from McCarran International Airport, 5 minutes from The Convention Center, 2-3 minutes from The Las Vegas Strip and right behind the Hard Rock Hotel & Casino, which in late 2018 will turn into a Virgin Hotel by Richard Branson. Previously approved plans for the site included expansion of the gaming enterprise district for a new resort hotel, 794 rooms, 261 feet total building height (26 stories), 100,462 SF gaming area, ±48,130 SF public space (restaurants, retail sales, spa area and other accessory use), ± 39,117 SF convention center facilities and ± 36,479 SF back-of-house area. All previously approved plans and special-use permits are subject to re-approval as they expired in June 2018.

INVESTMENT HIGHLIGHTS • Location: Situated in the heart of Las Vegas • Highly attractive non-gaming property: 2-3 minutes from the Las Vegas Strip • Easy access: The Las Vegas Strip, McCarran International Airport, the Convention Center, T-Mobile Arena and the new Las Vegas Raiders Stadium • Independently Owned and Managed: Unencumbered by management • Franchise Affiliation: None (Former Ramada) • Asking Price: $17,950,000.00 OFFERING MEMORANDUM: PRIME REDEVELOPMENT OPPORTUNITY 4 Property Overview

SUMMARY

The 150-guest room Fortune Hotel Las Vegas is located in the heart of Las Vegas, one block East of the Las Vegas Strip. The extraordinary well located hotel is less than 1 mile from McCarran International Airport, 1 mile from The Strip, less than 2 miles from the Las Vegas Convention Center, 2 miles from T-Mobile Arena and the Golden Knights, and 3 miles from the Las Vegas Raiders Stadium.

AMENITIES INCLUDE:

BUSINESS CENTER The Business Center provides access to phone service, complimentary printing service, express mail, fax, and photo copying service. The entire hotel offers free WiFi.

MEETING ROOM The hotel offers access to 2 versatile on site meeting rooms. The lower level meeting room seats 50, and the upper level meeting room seats 90.

BOARDROOM The hotel also offers access to a 10 seat boardroom on the upper level.

FOOD & BEVERAGE Complimentary hot breakfast is provided to guests each morning. Within walking distance of the hotel include Dunkin’ Donuts, Ferraro’s Italian Restaurant, Capriotti’s Sandwich Shop, Hofbrauhaus, and much more.

OUTDOOR POOL The courtyard features an outdoor pool and hot tub with lounging chairs for guests.

FITNESS CENTER The courtyard also features a fitness center.

The hotel offers FREE parking and FREE Airport Shuttle

OFFERING MEMORANDUM: PRIME REDEVELOPMENT OPPORTUNITY 5 Surrounding Aerial

E DESERT INN ROAD

TREASURE ISLAND PALAZZO MIRAGE VENETIAN SUBJECT THE LINQ/HIGHROLLER PROPERTY CAESARS RIO PALACE FLAMINGO E FLAMINGO ROAD PALMS BELLAGIO PARIS BALLY’S PARADISE ROAD Vegas Golden COSMOPOLITAN Knights PLANET HOLLYWOOD ARIA

NEW YORK MGM GRAND NEW YORK E TROPICANA AVENUE

TROPICANA EXCALIBUR

LUXOR S LAS VEGAS BOULEVARD

MANDALAY BAY Site of Raiders Stadium

OFFERING MEMORANDUM: PRIME REDEVELOPMENT OPPORTUNITY 6 Aerial Map - Looking Northwest

CAESARS PALACE MIRAGE BELLAGIO

PARIS VENETIAN & PALAZZO WYNN/ENCORE BALLY’S THE LINQ/HIGHROLLER LAS VEGAS GLOBAL BUSINESS DISTRICT

SUBJECT FLAMINGO ROAD PROPERTY

HARD ROCK

HARMON AVENUE

PARADISE ROAD

OFFERING MEMORANDUM: PRIME REDEVELOPMENT OPPORTUNITY 7 Property Description

Property Matrix Ownership Interest: Fee Simple Franchise Affiliation: None (former Ramada) Management Co.: Offered free of any management encumbrance (independently managed) Address: 325 E. Flamingo Road, Las Vegas, Nevada 89169 Site Size: ±5.68 Acres Number of Rooms: 150 rooms Building Area: ±127,167 Square Feet Building Description: 3 (Three), 3-story buildings; interior corridors Year Built: 1991

Parking Spaces: ±85 spaces Food & Beverage: Breakfast Lounge & Bar Meeting Facilities: ±1,000 SF of Meeting Space in Main Building Guest Amenities: Outdoor swimming pool, hot tub and Fitness Center Zoning: The property is zoned H-1 and is located in the AE- 60 zone in the MUD-1 Overlay District. MUD-1 allows for the most intense urban form, designed to allow highly concentrated and intense development with high-rise buildings with heights exceeding 200 feet or more and densities exceeding 50 dwelling units per acre. With approval of a Special Use Permit the height of the structure on this property can be built to a maximum of 261 feet.

OFFERING MEMORANDUM: PRIME REDEVELOPMENT OPPORTUNITY 8 Property Description (con’t)

Room Description ROOM TYPES

Standard Queen 72 Rooms Standard King 53 Rooms Jacuzzi Suite 9 Rooms Pet Queen 7 Rooms Executive Suite 4 Rooms ADA accessible 3 Rooms Parlor Suite 2 Rooms

TOTAL 150 Rooms

The standard King, Queen, Pet Queen and ADA room all offer TV, Phone, Refridgerator, Free WiFi and bathroom with a bathtub. The Jacuzzi Suite offers, in addition to above, a separate room with a sofa and TV, Bar area with Microwave, 2 bar stools and a Jacuzzi and Shower in the bathroom. The Executive Suite offers, in addition to above minus the jacuzzi, a small meeting table.

OFFERING MEMORANDUM: PRIME REDEVELOPMENT OPPORTUNITY 9 Property Description (con’t)

Site Plan

E. FLAMINGO RD. TUSCANY CASINO DR. TUSCANY

OFFERING MEMORANDUM: PRIME REDEVELOPMENT OPPORTUNITY 10 Property Description (con’t)

Property Photos

The ±5.68 acres, with only the current structure built on around half that, offers a prime redevelopment opportunity with previous plans for site development approved by Clark County Department of Comprehensive Planning and Land Use Planning. The approved plans for the site included expansion of the gaming enterprise district for a new resort hotel, 794 rooms, 261 feet total building height (26 stories), ±100,462 SF gaming area, ±48,130 SF public space (restaurants, retail sales, spa area and other accessory use), ±39,117 SF convention center facilities and ±36,479 SF back-of-house area.

All previously approved plans and special-use permits are subject to re-approval as they expired in June 2018.

OFFERING MEMORANDUM: PRIME REDEVELOPMENT OPPORTUNITY 11 Property Description (con’t)

This map is for assessment use only and does NOT represent a survey. ASSESSOR'S PARCELS - CLARK CO., NV. SEC. MAP

BOOK T21S R61E 21 N 2 NE 4 162-21-5 Michele W. Shafe - Assessor No liability is assumed for the accuracy of the data deliniated herein. 8 4 8 4 PARCEL BOUNDARY CONDOMINIUM UNIT 001 ROAD PARCEL NUMBER 6 5 4 3 2 1 Information on roads and other non-assessed parcels may be obtained 138 139 140 5 1 5 1 from the Roadssessor Document Listing in the Assessor'sar Office.cel ap SUB BOUNDARY AIR SPACE PCL 001 PARCEL NUMER 7 8 9 10 11 12 A P M PM/LD BOUNDARY ACREAGE 18 17 16 15 14 13 RIGHT OF WAY PCL 1.00 6 2 ROAD EASEMENT 2 6 163 162 161 19 20 21 22 23 24 This map is compiled from official records, including surveys and deeds, MATCH / LEADER LINE SUB-SURFACE PCL 202 PARCEL SUB/SEQ NUMBER but only containsThis map the is informationfor assessment required use only for andassessment. does NOT representSee the a survey. ASSESSOR'S PARCELS - CLARK CO., NV. 30 29 28 27 26 25 7 3 7 3 SEC. HISTORIC LOT LINE PB 24-45 PLAT RECORDING NUMBER MAP BOOK NOTES T21S R61E 21 N 2 NE 4 162-21-5 recorded documents for more detailed legal information. Michele W. Shafe - Assessor 176 177 178 31 32 33 34 35 36 No liability is assumed for the accuracy of the data deliniated herein. HISTORIC SUB BOUNDARY 5 BLOCK NUMBER 8 48 4 8 4 8 4 USE THIS SCALE(FEET) WHEN MAP REDUCED FROM 11X17 ORIGINAL HISTORICPARCEL PM/LD BOUNDARY BOUNDARY CONDOMINIUM UNIT 001 ROAD PARCEL NUMBER 6 5 4 3 2 1 Information on roads and other non-assessed parcels may be obtained MAP LEGEND 5 LOT NUMBER 138 139 140 5 1 5 1 SECTIONSUB BOUNDARY LINE PARCEL NUMER 121110987 5 1 5 1 0 100 from200 the Road Document400 Listing in the Assessor's600 Office. 800 AIR SPACE PCL 001GL5 GOV. LOT NUMBER Scale: 1" = 200' Rev: 12/11/2015 PM/LD BOUNDARY ACREAGE 18 17 16 15 1314 RIGHT OF WAY PCL 1.00 6 2 ROAD EASEMENT 162 161 2 6 40 163 19 23222120 24 803 This map is compiled from official records, including surveys and deeds, MATCH / LEADER LINE SUB-SURFACE PCL PARCEL SUB/SEQ NUMBER LEASE 813 202 42.53 30 29 28 27 26 25 7 3 7 3 003 but only contains the information required for assessment. See the HISTORIC LOT LINE PB 24-45 PLAT RECORDING NUMBER 012

NOTES PB 86-76 001 31 3635343332 020 021

35 151

recorded documents for more detailed legal information. 176 177 178 151 35 HISTORIC SUB BOUNDARY BLOCK108.63 NUMBER 1.51 8 4 0.17 105.82 0.8 4 8 0.84 40 USE THIS SCALE(FEET) WHEN MAP REDUCED FROM 11X17 ORIGINAL HISTORIC PM/LDPT1 BOUNDARY 5 PT1 126.59

MAP LEGEND 220 80 5 LOT NUMBER PT1

293.64 41.94 PT1 80 4 20 SECTION LINE 211.18 5 51 1PT1 LEASE 1 422.80 PT1 0 100 200 400 600 800. 337 GL5 GOV. LOT NUMBER Scale: 1" = 200' Rev: 12/11/2015 6 232.06

94.46 007 3 541.7 242.92 72.58

160 006 PM 107-85

03.02 .18 541.7

4 94 1 0.19 005 242.92 > 40 1 72.58 1.89 . 003 LEASE 6 803 101 127

001 LEASE 127 3 501 0.9 813 004 102. 002 42.53 R=00334 PB0.98 86-76 012 003

88.74 001 126.99 020 021 004 16.86 40 35 619.23 R=30 LEASE 1.56 151

151

35

R=30 126.99 306.65 LEASE 108.63 1.51 0.94 63.72 R=25 40 0.17 PT1 PT1 315.57 R=25 105.82 0.8 0.84 0.67 33 34.5 002 PT1 PT1 130.08 R=25PT1 LEASE PT 162- 220 513.1 502 LEASE 126.59 80 PT1

293.64 41.94 PT1 80 4 20 211.18 324.34 PT1 LEASE 40 40 LEASE 1 PT1 422.80 38.08 . 337 174.29 22-101-002 6 003 232.06

94.46 007 3 541.7 242.92 72.58

160 006 PM 107-85 541.7 4 103.02 0.19 005 242.92 > 1 005 72.58 1.89 . 003

40 007

6 101.18

127 006001 50 LEASE 127 FLAMINGO RD 3 501 0.9 102.94 002 R=34 008 0.98 004 003 40

40 88.74 010 126.99 004 40 40 3 619.23 16.86 R=30 LEASE 1.56 3 012 40 R=30 126.99 1.7 021 011 306.65 LEASE PB 8-18 50 0.94 63.72 R=25 6 1 PT1 PT1 315.57 R=25 0.67 33 PT1 R=25 34.5 PLATINUM002 .76 150 112.94 52.82 022 510 130.08 LEASE 009 PT 162- 139.40 94.03 513.1 502 LEASE 40 30.77 54.5 75.22 013 324.34 LEASE 40 40 023 249.36 208.39 174.29 38.08 22-101-002 001 RESORT R=54 60003 323.57 014 010

045 L=147.27 60.61 170 CONDOMINIUMS 005

100

0.58 79.53 40

007 109.75 006 50 PB 129-18 008 FLAMINGO RD

5 40 010 40 40 3 70.88 3 012 40 1. 021 011 PB 8-18 50 160 76 1 FLAMINGO 20 PLATINUM .76 150 112.94 E. FLAMINGO52.82 RD. 022 510 009 139.40 94.03 75.22 30.77 54.590.28 246 40

511 173.2 249.36 013 DR. 023 See001 Condo ListRESORT Page PARKR=54 60 208.39 323.57 014 010

003 045 L=147.27

90

90 60.61

170 CONDOMINIUMS 72.67

100 NO 1 60.25 0.58 79.53 6 0.33 100 109.75 033 40 PB 129-18 5 160 "A" 70.88 PM 86-6 PM 96-27 30 150 160 FLAMINGO 20

90.28 246

511 173.2 004 See Condo List Page PARK

100 003

100

90 90 94.78

0.34 72.67

NO 1 6 60.25 40 0.33 100 001 012 014 033 568.97 004 150 160 576.06

PM 86-6 550 "A" TUSCANY CASINO 3.4 2.28 PM 96-27 3.3 4.85 30 150360 456.33 50.99 17.21 004

283.51 100 503 0.34 100 94.78 001 012 014 150 568.97 004 010 576.06

3.4 550 200 2.28 5043.3 4.85

360

200 988.50 1.65 456.33 50.99 17.21 1 283.51 012503 978.47

236.78 54.72 14.6 014

KOVAL LN KOVAL 010

200 9.49 015 504 200 59.48 1.65 988.50 2.03 1

012 978.47 014 2 236.78 3 1 54.72 14.6 301.65 122.08 185.18 450 KOVAL LN KOVAL 9.49 015 476.95 581.93 015 2.03 59.48 2 3 1 011 301.65 122.08 THE HARD185.18 ROCK HOTEL/CASINO450 199.48 015 2.48 476.95 PB 138-49 581.93 002 001

THE HARD ROCK HOTEL/CASINO 199.48 011 4.1 3.9 122.43 PB 138-49512 255.79 2.48 4 6 0 001 . 7 002 1 4.1 3.9 122.43 024 360 512 255.79

4 424.38 6 0 FLAMINGO

455 . 016 7 1 449.96 TUSCANY CASINO DR PARK 024 360 76 038

007 16 FLAMINGONO 1 424.38 455 140 016 277.13 1.16 449.96 TUSCANY CASINO DR PARK 018 76 510038039 003 R=20 007 76 024 16 177

PB 8-18 177 60 NO 1

140 650.20 277.13 1.16 139.42 17 PT 1 PT 1 PT 1 2.98 40 30 30 018 019 017 510 039 040 003 R=20 76

30 024 020 62.79 177 PB 8-18 86.33 177 > 60 76 30 650.20 312.01 139.42 PT 1 132.02 2.98 101.23

002 ROCHELLE AVE 65.04 17 PT 1 PT 1 003 30 30 190.06 005 100 003 443.82 40 30 019 004 017 04018 152.18 215.06 190.06 020 30 62.79 > 86.33 207.53 76 30 60.04 112.86 312.01 132.02 60.04 100 86.81 20 011 101.23

002 ROCHELLE AVE 65.04002 76 THE HARD ROCK 003 64.45 30 FLAMINGO 190.06 100 2 005 0033 18 152.18 443.82 215.06 190.06 004 53613

207.53 05:820 .15 19 60.04 112.86 001 2 011 007 5 60.04 100002 86.81 20 010 THE HARDHOTEL/CASINO ROCK 64.45 3 141.6 76 2 FLAMINGO PARK NO 1 53.15613 601 001 2 19 010 007 178.0 141.6 PARK NO 1 HOTEL/CASINO 601 TAX178.05 DIST 470

199712 VAC TAX DIST 470 OFFERING19971205:820 VAC MEMORANDUM: PRIME REDEVELOPMENT OPPORTUNITY 12 Las Vegas Highlights

A Record 42.2 million people visited Las Vegas in 2017. Las Vegas hosts an average of 10,000 wedding ceremonies each month, that’s over 300 Weddings a day. Source: www.drrsvcs.com/nevada-marriage- records

The T-Mobile Arena opened its doors in April 2016. At the cost of $375 million, this area has a total square footage of 650,00 and has a seating capacity of 20,000.

After a 31-1 approval vote to move to Las Vegas, the Oakland Raiders recently closed on a 62-acre parcel adjacent to the Las Vegas Strip that will house the new $1.9 billion stadium set to open in 2020.

With the $70 million 350,000 square foot expansion of Mandalay Bay Convention Center completed, it now has more than 2 million total square feet. This moved its ranking to fifth in total square footage in North America.

The Las Vegas Convention Center is undergoing a $1.4 billion 600,000 square foot expansion/renovation project to advance the tourism industry in Southern Nevada by providing a state-of-the-art facility.

University of Nevada, Las Vegas has increased their student enrollment numbers in 2017 to 30,471, up 2.6% from previous year.

Project Neon is Nevada’s largest and most expensive public works project holding a price tag of $1 billion. This 3.7 mile long widening of Interstate 15 from U.S. 95 interchange to Sahara Avenue project will be completed in summer of 2019.

Las Vegas’ first NHL team will be known as the Vegas Golden Knights and begin play in the 2017-2018 season at the T-Mobile Arena.

Las Vegas has approved a United Soccer League team and it will be called the Las Vegas Lights Football Club. They will begin play at Cashman Field during the 2018 season.

OFFERING MEMORANDUM: PRIME REDEVELOPMENT OPPORTUNITY 13 Las Vegas Overview

Las Vegas

Encircled by mountains in the Mojave Desert of Southern Nevada, Las Vegas is a city of intriguing contrasts, from suburbs filled with green parks and families to the vacation playgroundEMPLOYMENT of The Strip. ItAND is home. UNEMPLOYMEN It is escape. It is unique. TOTAL EMPLOYMENT

The Las Vegas–Paradise–HendersonNEVADA Metropolitan Statistical AreaCLARK (MSA), COUNTY, NV stretches across the southern-most tip of the state, encompassing 8,091 square miles.YEAR As the county seatTOTAL of Clark County% YR AGO (the 22nd TOTAL largest % YEAR AGO county in the2004 nation), Las Vegas is1,128,223 widely known as‐ the “entertainment 793,908 4.1% capital of the2005 world” and a premier 1,173,425 destination for4.0% gambling, fine 833,717 dining, 5.0% entertainment,2006 and shopping. This1,222,277 reputation has4.2% made Las 873,249Vegas a 4.7% popular setting2007 for films and television 1,245,102 programs, 1.9%and 19,767 conventions 890,104 1.9% in 2017 alone.2008 The city also functions 1,254,466 as the leading0.8% financial and 902,390 growing 1.4% cultural center2009 for southern Nevada. 1,210,109 3.5% 866,027 4.0% 2010 1,200,302 0.8% 857,512 1.0% The famous Las Vegas Strip is a four mile long stretch of Las Vegas Boulevard famous for its dense concentration of casinos, resort hotels, 2011 1,207,956 0.6% 863,813 0.7% restaurants, and mega-clubs. Located south of downtown in the unincorporated towns of Paradise and Winchester, the Strip and the 2012 1,225,088 1.4% 879,641 1.8% immediate area hosted 42,208,200 million visitors in 2017. Las Vegas is the city that never sleeps, meaning round the clock opportunities 2013 12,378,602 1.0% 891,483 1.3% for business owners and investors.

2017 TOP EMPLOYERS Economy EMPLOYEE NAME EMPLOYEES INDUSTRY MGM Resorts Intl. 53,157 Hotel‐Casino With a population of approximately 2.2 million, the Las Vegas MSA is the Caesars Entertainment Corp. 30,000 Hotel‐Casino 31st most populated CBSA (Core Based Statistical Area) in the U.S. The Stations Casinos, LLC 14,000 Hotel‐Casino key economic driver in the MSA is the tourism industry generated by the casinos, hotels, and the major attractions offered in the valley. Of the Wynn Resorts 12,000 Hotel‐Casino 500 U.S. corporations with the largest revenues in 2016, listed by Fortune Boyd Gaming Corp 11,700 Hotel‐Casino magazine in 2017, four are headquartered in Las Vegas. All four are part Las Vegas Sands Corp 8,600 Hotel‐Casino of the Leisure and Hospitality Sector: Caesars Entertainment, Las Vegas Valley Health 7,463 Health Care Sands, MGM Resorts International, and Wynn Resorts. McDonald's 5,250 Fast food Cosmospolitan of Las Vegas 5,008 Hotel‐Casino Southwest Medical Associates 4,808 Health Care *Source: VegasInc.com

OFFERING MEMORANDUM: PRIME REDEVELOPMENT OPPORTUNITY 14 Las Vegas Overview (con’t)

Business and travelers alike have shown a renewed interest in Las Vegas. Most tourism numbers for 2017 exceeded recent years. Las VegasEmployment by IndustryEmploymentEmployment by Industry by Industry Leisure & Hospitality 28%Leisure Leisure& Hospitality & Hospitality suffered during the recession and was perceived as the hardest hit by Transportation/Utilities 19%Transportation/UtilitiesTransportation/Utilities the economic turndown. Now the city is making healthy strides toward Professional & Business Services 14%ProfessionalProfessional & Business & Business Services Services expansion and is a symbol of the nation’s recovery. Government 13%GovernmentGovernment

Educ. And Health Services 10%Educ. AndEduc. Health And ServicesHealth Services Since 2010, total employment in the Las Vegas area has grown at an Construction 4%ConstructionConstruction average annual rate of 2.2%, exceeding the U.S. employment average annual growth rate of 1.7%. Moreover, the Las Vegas retail sector Financial Activities 5%FinancialFinancial Activities Activities accounts for 12% of total employment. Manufacturing 3%ManufacturingManufacturing Information 1%InformationInformation Downtown Las Vegas is the recipient of substantial investment funds Mining 2%Mining Mining and rebranding efforts led by the Downtown Project. A massive Other 4%Other Other campaign to transform Downtown Las Vegas (north of the Strip) into a community attractive to new businesses and young urban professionals *Source: Bureau of Labor Statistics has occurred and is a continuing working community plan by local government and business leaders. The neighborhood is filling with low vacancy office and apartment buildings and a thriving arts-centered nightlife scene. All of these facets, including a quickly rebounding housing market, foretell a continuation of the steady growth Las Vegas’ economy is experiencing.

Business and Individual “Friendly” Tax Structure

Due to gaming revenue income received by the state and local government, Nevada does not impose personal income, estate, business, or gift tax. Las Vegas is able to offer unmatched incentives that continue to facilitate job and business growth and enable the local economy to rebound after the recession. This local tax structure is very attractive to individuals, investors, and businesses.

OFFERING MEMORANDUM: PRIME REDEVELOPMENT OPPORTUNITY 15 Las Vegas Overview (con’t)

Demographic Analysis

The following is a demographic study of the region sourced by Site To Do Business (STDB Online), an on-line resource center that provides information used to analyze and compare the past, present, and future trends of geographical areas. Demographic changes are often highly correlated to changes in the underlying economic climate. Periods of economic uncertainty necessarily make demographic projections somewhat less reliable than projections in more stable periods. These projections are used as a starting point, but we also consider current and localized market knowledge in interpreting them within this analysis.

Population POPULATION YEAR UNITED STATES NEVADA CLARK COUNTY, NV 2010 Total Population 308,745,538 2,700,551 1,951,269 According to Esri, a Geographic Information System (GIS) Company, the 2017 Total Population 327,514,334 2,994,047 2,192,887 Las Vegas-Paradise, NV metropolitan area has a 2017 total population 2022 Total Population 341,323,594 3,228,882 2,386,454 of 2,192,887 and has experienced an annual growth rate of 1.52% for 2010‐2017 CAGR 0.82% 1.43% 1.62% the past decade, which is higher than the Nevada annual growth rate 2017‐2022 CAGR 0.83% 1.52% 1.71% of 1.0% over this timeframe. The metropolitan area accounts for 73.2% of *SOURCE: (STDB) SITE TO BUSINESS the total Nevada population (2,994,047). Within the metropolitan area the population density is ±253 people per square mile compared to the lower MEDIAN AGE Nevada population density of ±25 people per square mile and the lower YEAR HOUSEHOLDSUNITED STATES NEVADA CLARK COUNTY, NV United States population density of ±89 people per square mile. YEAR2017 UNITED38.2 STATES NEVADA37.4 CLARK COUNTY,36.7 NV 20152020 120,746,349 38.9 1,063,11537.6 36.8 759,737 The 2017 median age for the metropolitan area is 36.7 which is younger than CAGR2020 125,477,562 0.36% 1,313,1230.11% 812,2560.05% the United States median age of 38.2. The metropolitan area anticipates the *SOURCE:CAGR (STDB) SITE TO BUSINESS 0.77% 4.31% 1.35% median age to increase by 0.3% annually over the next five years, raising *SOURCE: (STDB) SITE TO BUSINESS the median age to 37.6 by 2022. DISTANCE to MAJOR CITIES MEDIAN HOUSEHOLD INCOME MILES YEAR UNITED STATES NEVADA CLARK COUNTY, NV Palm Springs, CA 230 2015 $53,217 $52,323 $52,541 Los Angeles, CA 270 OFFERING MEMORANDUM:2020 PRIME REDEVELOPMENT$60,683 $58,970 OPPORTUNITY$59,274 16 Phoenix,CAGR AZ 2.66% 2.42% 2.44%290 *SOURCE:San Diego, (STDB) SITE CA TO BUSINESS 330 Tucson, AZ 410 Salt Lake City, UT 430 AVERAGE HOUSEHOLD SIZE Reno, NV 450 YEAR UNITED STATES NEVADA CLARK COUNTY, NV San Francisco, CA 560 2015 2.57 2.66 2.71 2020 2.57 2.67 2.72 CAGR 0.00% 0.08% 0.07% *SOURCE: (STDB) SITE TO BUSINESS

HOUSING UNITS UNITED STATES NEVADA CLARK COUNTY, NV Total Housing Units 136,527,306 1,233,439 886,686 Owner Occupied 55.7% 47.7% 46.0% Renter Occupied 32.8% 38.5% 39.7% Vacant Housing Units 11.6% 13.8% 14.3% *SOURCE: (STDB) SITE TO BUSINESS Las Vegas Overview (con’t)

Education

There are two major providers of higher education in Las Vegas, the College of Southern Nevada (CSN) and the University of Nevada-Las Vegas (UNLV). CSN has an enrollment of approximately 34,400 and this two-year public college is the 3rd largest community college in the United States. It is part of the Nevada System of Higher Education. UNLV has an enrollment of over 30,000, and offers 146 programs of study in multiple fields resulting in bachelor’s, master’s, and doctorate degrees; also regarded to be a ‘research-intensive university’ with its science and techology, business management and law programs. The University’s hospitality program consistently ranks among the top hospitality programs in the country due to the school’s proxmimity to the Las Vegas Strip. In addition, UNLV houses the School of Dental Medicine and the William S. Boyd School of Law, the only dental and law programs in the state.

Additionally, smaller specialized colleges draw students from around the country.

• Nevada State College • Regis University (satellite) • University of Phoenix (satellite) • Embry-Riddle Aeronautical University (satellite) • The Art Institute of Las Vegas

UNLV School of Medicine

The UNLV School of Medicine will be a full-scale, four-year medical school with a mission to improce access to high -quality health care in Southern Nevada. The accompanying academic health center will serve as the core infrastructure for the entire medical community.

• $100 Million, 170,000 square foot building on 10 acres • Newly Designed Learning Space • Initial Class of 60 Students July 2017

www.unlv.edu/medicine

OFFERING MEMORANDUM: PRIME REDEVELOPMENT OPPORTUNITY 17 Las Vegas Overview (con’t)

Professional Sports Comes To Las Vegas

NFL - LAS VEGAS RAIDERS NHL - LAS VEGAS GOLDEN KNIGHTS

The Oakland Raiders received the NFL’s approval to move The Las Vegas’ T-Mobile Arena is the to Las Vegas for the 2020 NFL season. The construction of home to the first professional sports the new $1.9 billion stadium just to the west of the Strip is franchise in the history of Las Vegas. currently in progress. The venue’s horse-shoe shape, designed by Manica The Vegas Golden Knights are right now playing Architecture, would accommodate an audience of 65,000 spectators, 8,000 their first season. The Golden Knights will pay at least cars, tailgating amenities and mixed-use commercial facilities. Along with the 40 hockey games in the T-Mobile Arena per season. economic benefits of in-season games, this venue would also allow Las Vegas to host the annual Super Bowl – which would bring in hundreds of millions of dollars in tourism and revenue. OFFERING MEMORANDUM: PRIME REDEVELOPMENT OPPORTUNITY 18 Las Vegas Overview (con’t)

Transportation

McCarran International Airport

McCarran International Airport (LAS) represents the geographic and economic heart of the Las Vegas valley and serves as the initial visitor gateway to one of the most exciting resort destinations in the world. LAS is the primary commercial airport serving the Las Vegas Valley, a major metropolitan area in Nevada, and one of the busiest airports in the world and a centerpiece of southern Nevada’s tourism-based economy.

2017 McCarran International Airport welcomed 48.5 Million passengers, a 2.3 percent upturn from the year prior. Overall domestic passenger volume grew by 2.4 percent, accounting for 1.05 million additional Las Vegas passengers in 2017.

Highlights • Ranked eighth busiest airport in North America in terms of passenger traffic - 2017 • Ranked 26th busiest airport worldwide in terms of passenger traffic - 2017 • Nominated the last seven (7) years in World Travel Awards • Airport customer service program initiated called MAYS: McCarran At Your Service

Vehicular Transportation

Interstate 15 is the main route North and South from San Diego, California, through Las Vegas, on to the US/Canada border. The majority of visitors from Southern California arrive in Las Vegas by traveling Interstate 15.

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7 $13.6 Billion in New 3 1 4 Capital 9 Investment 10 is Driving 2 Growth 8 5 6

1. Resorts World Las Vegas - $4.0 Billion 2. Las Vegas Stadium - $1.9 Billion

• $4 billion Strip resort project with a heavy Asian theme began • The Oakland Raiders will move to Las Vegas for the 2020 NFL construction in 2017. season. • Resorts World, developed by the Genting Group, is being • The groundbreaking ceremony took place in November 2017 built at the former site of the Stardust and Echelon. for a new $1.9 billion stadium just west of the Strip. • Genting, which bought the site from Boyd in 2013 for $350 • The venue’s horse-shoe shape, designed by Manica million, will be using the partially constructed Echelon Architecture, would accommodate 65,000 spectators, 8,000 structures for this property. cars, tailgating amenities and mixed-use commercial facilities. • With a projected opening set for 2020, the initial phase will • The design shows a retractable natural turf field. have 3,100 rooms, a 100,000-square-foot casino, shops and • This venue would also allow Las Vegas to host the annual restaurants spread across its 88-acre site. Super Bowl.

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3. Wynn Paradise Park - $1.5 Billion 4. Convention Center Expansion - $1.4 Billion

• Wynn Resorts Ltd. is building its third hotel behind its two Las • Las Vegas Convention Center will be renovated and Vegas casinos, an ambitious Carnivale themed project called expanded into a $1.4 billion Las Vegas Global Business District. Wynn Paradise. • Planned in four phases, new facilities will replace the 26-acre • The $1.5 billion resort will take the place of the golf course and Riviera Hotel site, adding ±1.4 million square-feet of exhibit and feature 1,500 rooms around a 38-acre lagoon, a small casino, meeting space. restaurants and nightclubs. • Phase Two of the project is projected to be completed in • The lake will have a white sandy beach, a boardwalk, water 2020. skiing, paddle boating, zip lines/gondola, and nightly fireworks. • Expected to draw an additional 600,000 visitors a year, drive • Heavy duty construction should begin by spring 2018 with a $2.1 billion in economic activity during construction and have 2020 debut. an annual economic impact of $810 million when finished. 5. Union Village - $1.2 Billion 6. Switch - $1 Billion

• Union Village will be the first Integrated Health Village in the • Switch is a globally recognized leader in future-proof data world, and is listed as the largest healthcare building project in center design, superscale cloud, unparalleled telecom the United States. gateways and energy sustainability. • The $1.2 billion dollar, 155-acre planned development not only • Its Southern Nevada expansion includes a $1 billion data covers healthcare, but retail, entertainment, and senior living storage site on 200 acres near its two existing data storage as well. facilities at South Jones Boulevard and the 215 Beltway. • Approximately 355,000 square feet have been completed, • Idea to link 50 million people within 14 milliseconds of data totaling $300 million in work, with another 476,000 square feet hosted at each of the company’s data hubs via a superloop to be under construction soon. of fiber optic cable connecting its Reno and Las Vegas supernaps sites, with a planned facilities in LA and SF. OFFERING MEMORANDUM: PRIME REDEVELOPMENT OPPORTUNITY 21 Las Vegas Overview (con’t)

7. Project Neon - $1 Billion 8. Extreme Sports Park - $800 Million

• Project Neon is the largest public works project in Nevada • Josh Kearney’s $800M extreme sports park called The Edge history. received county approval in 2017. • $1 billion effort to redesign and widen Interstate 15 from the • 130-acre at the SEC of Las Vegas Boulevard and Sunset Road, U.S. Highway 95 interchange to Sahara Avenue by July 2019. adjacent to Town Square Las Vegas, a 1.2M SF class A open • Currently this road is the busiest stretch of highway in Nevada air shopping, dining, office and entertainment center. with 300,000 vehicles daily. Traffic through the corridor is • The Park is expected to have surfing/wake boarding/rock expected to double by 2035. climbing/mountain biking/indoor skydiving/bungee jumping/zip lines and a 15-story, 640 room hotel with a casino, convention space, restaurants and two rooftop pools. • Project will take approximately 2.5 years to complete.

9. Palms Renovation - $485 Million 10. Park MGM (Former Monte Carlo) - $450 Million

• Station Casinos will enhance nearly every feature of the resort • A transformation occurring in Las Vegas is the conversion of by investing $485 million in improvements. the Monte Carlo into two hotels: a 2,700-room luxury resort • Plans include redesigned/renovated hotel rooms, 60 new Park MGM and a 292-room hotel NoMad Las Vegas. hotel rooms, 29,000 square foot nightclub, new 73,000 square • This $450 million makeover is projected to be completed by foot pool club, several celebrity chef restaurants, new spa, the end of 2018. meeting/convention space, new covered parking spaces, • The new resort will feature two hotels, redesigned rooms, an refresh of the Pearl Theater, renovated casino floor, and a new Italian market Eataly with cafes, walk-up counters and dine-in front desk registration area to name a few. restaurants. • First phase underway and the second phase is expected to be • The properties will have amenities such as dining and casinos completed by early 2019. as well as a 5,300-seat theater at the Park MGM.

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