Mesa Del Sol

±2,792 ACRE MASTERPLANNED COMMUNITY RESIDENTIAL & COMMERCIAL PROPERTIES EXCLUSIVE LISTING | ALBUQUERQUE, NM

SC3 DEVELOPMENT Steve Chavez | 505.295.8000 J. Kyle Bodhaine | 505.681.9932 4020 Vassar Dr. Ste. H | Albuquerque, NM 87107 TABLE OF CONTENTS MESA DEL SOL

Executive Summary Page 3

Property Maps Page 4

Level B Boundary Map Page 7

Residential Page 8

Innovation Park Page 10

Municipal Financing Alternatives Page 14

List of Land Parcels Page 15

Confidentiality and Nondisclosure Agreement Page 16 EXECUTIVE SUMMARY MESA DEL SOL

Located in Albuquerque, New Mexico, the economic and geographic center of the State, MdS represents the remaining ±2,792.89 acres (the “Property”) of the land purchased from the New Mexico State Land Office (“NMSLO”) in June 2006.

Prior to closing, MdS obtained Level A Plan (master plan) approval for the Property as well as the approximately 5,700 acres adjacent to this property. The adjacent acreage is owned by the NMSLO. MdS also obtained Level B Plan (zoning entitlements) approval for the Property providing for approximately 13,300 homes and 10,700,000 sq. ft. of commercial/industrial space. The Property’s residential zoning is narrowly defined as Neo-Traditional (“New Urbanism”).

In addition, Tax Increment Financing (“TIDD”) of up to $500,000,000 was approved in 5 separate districts within the Property to cover major off-site public infrastructure.

Public Improvement Districts (“PID”) were also approved for the Property to fund on-site residential development.

MdS represents a unique opportunity to develop a large master planned residential community centered around the existing Innovation Business Park with over 2,000 jobs and in proximity to the other major Albuquerque employment centers. It is the last large land parcel on the east side of the Rio Grande River with relatively short commute times. Driving home to the west side of Albuquerque is very time consuming as there are a limited number of river crossings available. With zoning and utilities to the site in place and public financing options available to cover a significant portion of future development costs this opportunity has most of the heavy lifting behind it.

| 3 | Table of Contents MESA DEL SOL METRO MAP

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University of New Mexico Land (“UNM”)

±2,792.89 Acres Remaining

| 7 | Table of Contents RESIDENTIAL MESA DEL SOL

COMMUNITY ATTRIBUTES COMMUNITY CHALLENGES In addition to the availability of public financing in the form of TIDDs and PIDs ZONING REQUIREMENTS – RESIDENTIAL HOUSING the following are attributes of the MdS: The neo-traditional (“New Urbanist”) housing design for MdS has not been fully embraced by Albuquerque Metro homebuyers accounting for only 2.6% (189 MdS closings vs 7,247 total LOCATION | LOCATION | LOCATION closings) of new home closings since the delivery of the initial lots in January 2012. Given its location, MdS is, in most respects, an infill property with all but one of the major employers as an infill site and proximity centers, MdS should have captured a much higher market share. To (employment industries) within 6 to 8 miles of MdS. accomplish this change the existing Level B Plan may have to be modified.

WATER The existing community was designed with rear entry garages and walkability. The problem is, There is a 2,000,000 gallon above ground water tank with a water and sewer currently there is no place to walk to for goods and services. Roof tops are important to the success service agreement with the City of Albuquerque in place. of MdS.

OTHER UTILITIES TRAFFIC ACCESS All major utilities have been brought to the site and are adequate for the Access to I-25 is limited to the interchange at I-25 and Rio Bravo Blvd. This is cumbersome and a new/ development of the Property. dedicated interchange needs to be constructed and is required under an agreement made by MdS.

ROADWAYS SCHOOLS University Blvd provides access to MdS from I-25. An additional I-25 interchange The International School at MdS is a Baccalaureate Program Charter School with grades Kindergarten will be required to be built as part of the Property’s development. through 10th in the 2016-2017 school year. Grade 11 will be added in 2017-2018 with 12th grade the following year.

| 8 | Table of Contents RESIDENTIAL PROPERTY PHOTOS MESA DEL SOL

| 9 | Table of Contents INNOVATION PARK MESA DEL SOL

“SHOVEL READY” There are approximately 373.3 acres of vacant developed and partially developed within Innovation Park. ±164.8 acres have been sold with approximately 208.5 remaining. Overall, the commercial/industrial land parcels are over 80%+ developed and can be marketed and sold on a price per square foot basis.

| 10 | Table of Contents INNOVATION PARK MESA DEL SOL

EXISTING BUILDINGS

PROPERTY ACREAGE SQUARE FEET ABQ Studios, Option to purchase 25.5 additional acres ±28.2 ±287,118 Former Schott Solar Facility ±80 ±236,000 Fidelity Investments Office ±25.3 ±217,842 Former Advent Solar Facility ±6.7 83,922 Drug Enforcement Agency ±5.0 ±72,124 Aperture Center Office Building ±2.4 ±79,065 U.S. Immigration & Customs Enforcement ±7.4 ±33,000 Molina Health Care Data Center ±2.5 ±25,000 Nova Data Center ±5.0 Vacant Land New Mexico State Land Office ±2.3 Vacant Land Totals ±164.8 ±1,034,071

| 11 | Table of Contents INNOVATION PARK MESA DEL SOL

Future Fire Station Site

| 12 | Table of Contents INNOVATION PARK MESA DEL SOL

Former Advent Solar Facility Albuquerque Studios

Drug Enforcement Agency Fidelity Investments Office

U.S. Immigration & Customs Enforcement Molina Healthcare Data Center Aperture Center Office Building

| 13 | Table of Contents MUNICIPAL FINANCING ALTERNATIVES MESA DEL SOL

TAX INCREMENT DEVELOPMENT DISTRICT A Tax Increment Development District (“TIDD”) was established when the Property was purchased to fund the off-site public infrastructure.

TIDD PARAMETERS

• The work covered by the TIDD must be completed, dedicated to and accepted by a public entity and the costs paid by the developer prior to the issuance of the bonds which provide the funds to repay the developer. To date, the developer has spent approximately $8,000,000 on off-site infrastructure.

• One of the requirements of the TIDD is that jobs must be created within the boundaries of the Property. To date, over 2,000 jobs have been created. More jobs will have to be created for TIDD funds to be available.

• The TIDD bonds are repaid through the collection of a portion of ad valorem and gross receipts taxes over and above levels that existed when the districts were formed (tax increment). With the land previously owned by the NMSLO any ad valorem taxes are shared with the TIDD.

• The NMSLO, Bernalillo County and the City of Albuquerque are party to these agreements.

PUBLIC IMPROVEMENT DISTRICT Major on-site development costs have been funded and should continue to be funded with Public Improvement District (“PID”) funds. PID bonds are repaid through a mill levy assessed against the real property benefiting from the public improvements and passed though to the Property owner as part of the property taxes.

SUMMARY There are approximately $500,000,000 in funds still available under the TIDD and PID agreements.

| 14 | Table of Contents LIST OF LAND PARCELS MESA DEL SOL

ACREAGE ACREAGE Parcel 1 – Parcel 5 – Tract 6 200.89 Tract I-2 5.11 Tract 7 13.75 Tract 14 509.70 Parcel 6 – Tract 22-A 7.91 Parcel 2 – Tract 22-B 7.39 Tract 12-B 2.92 Tract 22-C 0.53

Parcel 3 – Parcel 7 – Tract 5 7.05 Tract A-1 1,764.77 Tract 6 8.05 Tract A-4 14.45 Tract 13 14.47 Tract A-5 12.27 Tract 14 9.27 Tract 15 7.93 Parcel 8 – Tract 17 16.83 Tract A-6-C 30.50 Tract 25 6.46 Parcel 9 – Parcel 4 – Tract A-6-A 6.77 Tract F 12.10 Tract J 17.04 Parcel 10 – Tract K 13.96 Tract 1-B 3.41 Tract L 9.35 Tract OS-5 1.46 Tract M 11.50 Tract N 6.79 Parcel 11 – Tract O 7.75 Tract Q-1 1.15 Tract P 25.53 Tract Q-2 4.79 Tract R 0.92 Tract Q-3 0.30 Tract OS-1 4.45 Tract OS-2 2.09 Total 2,792.89 Tract OS-3 3.75 Tract OS-4 0.70 Tract OS-5 3.82 Tract OS-6 2.80 Tract OS-7 12.21

| 15 | Table of Contents INNOVATION PARK Mesa Del Sol Albuquerque, NM

State Trust

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Feet 181625-23980 04-21-17 While the Land Advisors® Organization makes every effort to provide accurate and complete information, there is no warranty, expressed or implied, as to the accuracy, reliability or completeness of furnished data. This information can not be reproduced in part or whole without prior written permission. © 2016 The Land Advisors Organization. All rights reserved.