Chestnut Grove Family Resort 106 Carlton Rd • Mount Pocono, PA 18344

Well maintained garment manufacturing building with income from several tenants. Features office, manufacturing and warehouse space, freight elevator, 3 phase power, four loading docks, one drive in door and public utilities.

1992 W MAIN ST, STROUDSBURG, PA 18360 COMMERCIAL REAL ESTATE (570) 421-7466 or (800) 930-9788 & PROPERTY MANAGEMENT www.BaxCommercial.com All information deemed reliable but not guaranteed. Executive Summary

Chestnut Grove Family Resort has been offering guests a classic full-service resort experience for over 70 years. Located in the Heart of the Pocono Mountains, Chestnut Grove is within a short drive to all the recreational, shopping, dining and entertainment the area has to offer. Just some of these include: Mount Airy Casino, Camelback Resort (ski/waterparks), The Crossings Outlets, Kalahari Resort & Indoor Waterpark, Great Wolf Lodge, Pocono Raceway, Delaware Water Gap National Recreation Area, Historic Downtown Stroudsburg and so much more. The resort grounds offer guests a long list of on-site activities as well; indoor/outdoor pools, hot tub, lake for fishing and boating, large playground area, basketball, tennis, sand volleyball, bocce, sports field, game room and Carriage House bar. A total of 42 rooms offer various occupancy configurations accommodating singles up to families of six or more. Units are spread out on the property and housed in multiple buildings. The main lodge contains several guest rooms, dining room, commercial kitchen, reception, bar/coffee area and back of house office. Poolside, Lakeview and Vista cottages provide the remainder of guest rooms and differ in size and amenities. All rooms include heat, A/C and mini fridges. Currently the resort operates seasonally from May through October and rates include breakfast and dinner. Sale includes real estate, furniture, fixtures, equipment, liquor license and business.

Offered at $1,950,000

LOCATION The Pocono Mountains: 2,400 square miles of mountains, lakes, rivers, waterfalls and woodlands in the northeast corner of Pennsylvania, encompassing Carbon, Monroe, Pike and Wayne counties. TOWNS County seats of the respective counties are Jim Thorpe, Stroudsburg, Milford and Honesdale. All offer quaint, historic atmospheres, unique shops and restaurants, authentic historic sites, art galleries, friendly faces and more. THE ORIGIN OF “POCONO” Pocono is a Native American word meaning, “stream between two mountains.” The Delaware Water Gap is the true namesake, for the area where Delaware River cut a gap between two mountains and formed what is now known as the “Gateway to the Pocono Mountains.” STATISTICS • Number of visitors per year: Over 26.6 million person-trips, combining both overnight and day trips *Travel USA ® 2016 Visitor Report for the Poconos done by Longwoods International in April 2017 • Highest point: Mt. Ararat, Preston, in Wayne County. Elevation: 2,654 feet. • Lowest point: Bushkill, Pa., in Pike County. Elevation: 340 feet. • Total lakes: 150. • Total river miles: 170 (includes Delaware, Lehigh and Lackawaxen rivers). • Natural springs and brooks are scattered throughout the Pocono Mountains region. • Total State Parks: Nine State Parks covering a total of 35,537 acres. The parks are Beltzville, Big Pocono, Gouldsboro, Hickory Run, Lehigh Gorge, Promised Land, Prompton State Park, Tobyhanna and Varden Conservation Area. • Two National Parks: The Delaware Water Gap National Recreation Area covers 40 miles of the Delaware River from north of Milford, PA to south of Delaware Water Gap, PA. Total acres are 70,000. The Upper Delaware Scenic and Recreational River stretches 73.4 miles along the Pennsylvania and New York border. It includes riffles and Class I and II rapids between placid pools and eddies. The National Park Service celebrated its 100th anniversary in 2016. • State Forest: 81,958 acres of State Forest Land. • Hiking trails: 126 total trails equaling 261 miles of trails. • More than 30 golf courses, which are home to hundreds of holes, including championship courses built by Donald Ross, Jack Nicklaus, A.W. Tillinghast and Robert Trent Jones. • Four Indoor Waterparks: Camelback Lodge & Aquatopia Indoor Waterpark, Great Wolf Lodge, Kalahari Resorts and Conventions and Split Rock Resort & Golf Club. • Shopping: abundant antiquing, numerous unique shops located in quaint towns and The Crossings Premium Outlets (home to over 100 name-brand factory stores). • Festivals: From family-friendly fairs to chic food and wine events, the region’s year-round festivals provide memorable fun for everyone. • Ski areas: Six major ski areas all offering alpine skiing, snowboarding and snow tubing: Big Boulder SkiArea, Blue Mountain Ski Area, Camelback Mountain Resort, Jack Frost Mountain, Shawnee Mountain and Ski Big Bear at Masthope Mountain. Skiing is also available at Skytop Lodge. • Ski trails and terrain parks: over 155 trails. • Snow making: 100% snow making on 636 skiable acres. • Year-round events: the four counties of the Pocono Mountains offer a wide variety of events. Visit PoconoMountains.com/events to learn more.

Year Improvement Detail Value Year Improvement Detail Value 2014 New Point of Sale system license fee $ 2,100.00 2016 2 new commercial pool heaters for hot tub & indoor pool $ 8,000.00 2014-2017 TV upgrade for 42 units of 32"TV $ 10,500.00 2016 New construction - Sand Volleyball Court $ 8,000.00 2014-2019 New equipment - 6 new commercial instant water heaters for $ 18,000.00 2016 New construction - Outdoor pool pavement $ 3,000.00 cabins 2014-2019 New refrigerator for all 42 units $ 10,500.00 2016 New renovation - room carpet for all 5 rooms on main lodge 2nd $ 5,000.00 floor 2014-2019 10 resort commercial pole light upgrade $ 3,000.00 2016 New resort public announcement system $ 3,000.00 2015 New kitchen for lake house $ 12,000.00 2016 New renovation and equipment - new guest laundry room. Coin $ 5,000.00 Operated Laundry Room Washer & Dryer 2016 New building - Barn House & Inside Renovation $ 60,000.00 2016 New installation - Onsite Wireless Network Coverage $ 20,000.00 2015 New Commercial Washer & Dryer $ 40,000.00 2016-2017 New equipment - Carriage House commercial split A/C & $ 10,000.00 commercial heating 2015 New commercial instant heater for washer & dryer $ 4,000.00 2017 New indoor pool furniture $ 1,500.00 2015 New construction - Kids Room $ 20,000.00 2017 New construction - vinyl fencing for parking lot and playgrounds $ 8,000.00

2015 Carriage House Entertainment system (Computer, Speaker $ 5,000.00 2017 New equipment - tiki island climbing wall $ 8,000.00 system, Projector, Projection screen, wireless mic etc.

2015 New commercial heater for carriage house $ 2,000.00 2017 60 new outdoor Adirondack chairs $ 9,000.00 2015 Lake house basement water pump system $ 5,000.00 2017 20 outdoor pool chairs $ 3,000.00 2015 Game Room renovation $ 5,000.00 2017 New equipment - 2 Office Split AC installation $ 6,000.00 2015 New heater for game room $ 2,000.00 2017 New construction - firepit for bonfire. $ 3,000.00 2015 Indoor Pool AC & de-humification System $ 90,000.00 2018 New equipment - 2 commercial split AC installation at dining $ 14,000.00 room. 2015 Indoor pool renovation $ 35,000.00 2018 Septic system pump upgrade $ 4,000.00 2015 New construction - Sundeck outside of indoor pool $ 35,000.00 2018 New bar table and chairs $ 10,000.00 2015-2018 New king size headboard, bed set & mattress for all 42 units $ 42,000.00 2019 New archery target stand, score pole and score board for all $ 2,000.00 sports court 2015-2018 New Queen size headboard, bed set & mattress & sofa bed for $ 30,000.00 2019 Outdoor pool chair cover $ 1,000.00 all 30 units needed 2015-2018 New room furniture for all 42 units $ 42,000.00 2019 New room tiles for 17 rooms $ 85,000.00 2015-2018 New construction - multiple commercial playground Installation $ 60,000.00 2019 Bridge re-construction $ 8,000.00

2016 New 16 channel high definition surveillance system equipment $ 8,000.00 2019 New dock construction $ 12,000.00 & installation Total $ 777,600.00

Furniture, fixtures and equipment are included with sale to make this a turn-key opportunity. An extensive equipment list is available upon request.

Chestnut Grove Family Resort Cash Flow Analysis 2016-2018

2016 2017 2018

Gross Sales $ 614,667 $ 605,936 $ 425,851 Gross Profit $ 614,667 100.0% $ 605,936 100.0% $ 425,851 100.0%

Operation Expenses Salaries $ 154,545 25.1% $ 157,415 26.0% $ 87,476 20.5% Maintenance $ 14,555 2.4% $ 36,112 6.0% $ 30,627 7.2% Taxes & Licenses $ 48,759 7.9% $ 50,626 8.4% $ 50,978 12.0% Interest $ 51,178 8.3% $ 43,174 7.1% $ 50,957 12.0% Depreciation $ 53,603 8.7% $ 60,538 10.0% $ 5,317 1.2% Advertising $ 6,909 1.1% $ 4,270 0.7% $ 64 0.0% Other* $ 281,356 45.8% $ 238,102 39.3% $ 206,673 48.5% Total $ 610,905 99.4% $ 590,237 97.4% $ 432,092 101.5%

Profit Loss $ 3,762 0.6% $ 15,699 2.6% $ (6,241) -1.5%

Recast Expenses Officer Salaries** $ 87,377 14.2% $ 82,209 13.6% $ 40,695 9.6% Interest $ 51,178 8.3% $ 43,174 7.1% $ 50,957 12.0% Depreciation $ 53,603 8.7% $ 60,538 10.0% $ 5,317 1.2% Total $ 192,158 31.3% $ 185,921 30.7% $ 96,969 22.8% *For continuity, 2017 & 2018 COG rolled into “Other” expenses. Cash Flow $ 195,920 31.9% $ 201,620 33.3% $ 90,728 21.3% **Owner salaries paid as wages. Cash Flow Average $ 162,756 Source W-2 statements. 2018 Amount adjusted for tax purposes. * For continuity, 2017 & 2018 COG rolled into "Other" expenses. **Owner salaries paid as wages. Source W-2 statements. 2018 Amount adjusted for tax purposes. DISCLAIMER: All information provided has been supplied by the property owner and/or his/her accountant. You are urged to review any information with your money advisory DISCLAIMER: All information provided has been supplied by the property owner and/or his/her accountant. You are urged to reviewprofessional.any information Michael Baxter & Associates and their agents with your money advisory1992professional. W MAINMichael ST,Baxter STROUDSBURG,& Associates and their agents PAor representatives18360 do not warrant or guaranteeor representativesthe accuracy of do not warrant or guarantee the accuracy of the information presented, and shall not be held responsible/liable for any incorrect information that has been supplied by the seller.the information presented, and shall not be held responsible/ COMMERCIAL REAL ESTATE (570) 421-7466 or (800) 930-9788 liable for any incorrect information that has been supplied by & PROPERTY MANAGEMENT www.BaxCommercial.com the seller. Listing Agent

Brian K. Coyne is Associate Broker as well as the Director of Marketing for Michael Baxter & Associates Commercial Real Estate & Property Management. He has been a Monroe County resident for over 35 years and attended Pocono Mountain High School and East Stroudsburg University where he studied Media Communications. For nearly a decade Brian was the Creative Director (among many things) at his Grandfather’s advertising agency which focused primarily on the jewelry industry. He also has a background in apparel and media sales. In 2003, Brian earned his Real Estate license and began his affiliation with Michael Baxter & Associates as a part-time agent. Then full-time agent and in 2010 he became Director of Marketing. His commercial real estate sales and marketing backgrounds combine to make this position an ideal use of his talents. He earned his Pennsylvania broker license in 2018 and is pursuing a CCIM designation to add to his experience and knowledge base. Brian is also a member of the Board of Directors for Pocono Mountains United Way, on Brian K. Coyne Associate Broker PennDOT’s I-80 Project Advisory Committee and a Pennsylvania Notary Public. (570) 421-7466 Ext. 242 Mobile (570) 350-3106 [email protected]

1992 W MAIN ST, STROUDSBURG, PA 18360 COMMERCIAL REAL ESTATE (570) 421-7466 or (800) 930-9788 & PROPERTY MANAGEMENT www.BaxCommercial.com All information deemed reliable but not guaranteed.