7201 OCEAN A V E N U E Wildwood Crest,

A Rare Full Beach Block Development Opportunity

OCEAN AVENUE TABLE OF CONTENTS

01 Executive Summary

07 Site Description

15 General Market Overview

23 The Wildwood Crest Submarket

29 Residential Market Overview EXECUTIVE SUMMARY INVESTMENT OPPORTUNITY Regional Area Map New York

The Oceanside Rea lty Tea m at Keller Williams Rea lty (exclusive 78 agents) are pleased to present for sale 7201 Ocean Avenue (the “Property”), a +/- 90,000 sq . ft. parcel of land in Wildwood Crest, New Jersey. Wildwood Crest, situated ju st minutes off of the 476 and Rout e 9, is cen tra lly lo cate d between Avalon/Stone Ha rbo r and Cape Ma y – two of the mo st desirable and affluent residential areas on the Je rsey Shore. Spanning an entire block between Ocean Avenue and the beach, the Property is situated directly on the beach and in close proximity to premier oceanfront re so rt s su ch as The Grand at Diamond Beach, 276 95 Seapointe Village, and Coastal Colors.

295 NEW 476 Philadelphia JERSEY

PARCEL DESCRIPTION Address 7201 Ocean Avenue Wilmington City, State Wildwood Crest, NJ Municipality Wildwood Crest Parcel Number 94 Lot 1-30 Map Reference / Block 1-30 Acreage 2.07 Lot Area (SF) 90,000 SF Atlantic City Zoning Name Zone Multiple-Family M-1A

Avalon 9 Stone Harbor 7201 DEL. OCEAN A V E N UE Lewes WILDWOOD CREST 2 INVESTMENT HIGHLIGHTS

Outstanding Accessibility with Regional Connectivity The Property is located on the beach in Wildwood Crest, Ne w Jersey. Situated a sh o rt driving distance from the Garden State Parkway and Rou te 9, the Property features excellent accessibility for va ca tion e rs from Philadelphia, Ne w York, Ne w Je rse y and Washington DC.

Desirable Parcel Dimensions and Entitlements Spanning the width of an entire block, the rectangular dimension provides for greater development functionality and flexibility with entry points from either Ocean Avenue, Ra mb le r Ro ad and Orchid Avenue. Today, the Property is entitled for a co ndo min iu m development including a pool with the option to build townhomes upon further approval from the local authority. Access to utilities for the land parcel is available and the existing infrastructure is adequatefor eitherproposed development. LOCATION ACCOLADES

Premier Address with Unparalleled Beach Location and Amenities Named one of the top 50 Authentic AmericanExperiences Nestled between the Victorian charm of Cape May and the other affluent sh o re destinations of Stone Ha rbo r and Avalon, Wildwood Crest offers every beach aesthetic with restaurants and a wide “Best Beach Town In America For a Classic range of activities nearby su ch as golfing, wine tasting, biking, Experience” and “America’s Best Boardwalks” horseback riding, fishing, live entertainment, amusement piers and water sp o rts. Situated close to premier vacation resorts such as #1 Destination on the The Grand at Diamond Beach and Seapointe Village, the Rise in the U.S. for 2015 Property is located directly on the beach and directly at the entrance of theWildwood Crest walkers pathand amenities. Best of the Shore – Favorite Shore Town award Growing Residential Demand in an Affluent and Active Tourist Community The beaches in Wildwood are host to mo re than 9 million visitors #1 Beach Boardwalk each yea r and recently received accolades from numerous travel for Families advisors as a top destination in the U.S. Housing va lue s in Wildwood Crest and the su rro un d in g area for luxury residential “Named one of the Top real estate have exceeded annual growth expectations over the Ten American Boardwalks” past several ye a rs. Pricing is forecasted to co ntinu e rising in the near future with limited developable la nd and improving tourist 3 activity. DEVELOPMENT SCENARIOS 7201 Ocean Avenue was previously approved both locally and also had full CAFRA approvals for 69 con do min iu ms. 54 3- bedroom residences, 15 2-bedroom as well as a beachfront pool, fitness ce nte r and lobby. A su mma ry of the proposed development details for eitherscenario is provided below.

PROPOSED DEVELOPMENT DESCRIPTIONS Proposed Use Condominiums Full Property Zoning M-1A M-1A Units 69 @100 Acreage 1.52 2.07 Units per Acre 45.4 48.3 Parking Requirement 144 spaces 210 spaces Max Building Height 85 Feet 85 Feet

*Permissable with a Use Variance from the Township Board of Adjustments

3 Cape May Avalon Golf Club Stone Harbor Sand Barrens County Golf Club Golf Club Park South 47

Hereford Local Area Map 6 Inlet

18 Grassy Richardson Sound 17 9 Sound Cape May 8 County Airport

47 13

16 13 5 4 12 Taylor 15 12 Cape May Sound National Golf Club 6 14 1 3 7 11 5 8 10 11 9 Sunset 4 3 Lake 9 10 RESTAURANTS 12 9 1 The Blue Pig Tavern 1 7 Jarvis 2 Lucky Bones 7 Sound 3 The Washington Inn 7 9 8 4 Lobster House 162 8 1 11 7201 5 Sharky’s Feeding Frenzy 8 10 O C E A N 6 Axelsson’s Blue Crab Restaurant 4 6 19 5 6 7 Carini’s Pizza & Italian 3 7 5 8 A V E N U E 8 Crest Tavern 9 Marie Nichol’s Old Lower 4 Cape May 10 Jamaica Me Hungry 2 Harbor Thorofare 11 Barefoot Bar & Grille U.S. Coast Guard 5 12 Duffy’s On The Lake Restaurant 2 Training Area 2 13 Boathouse Restaurant & Marina Deck 1 2 14 Uncle Bill’s Pancake House 1 4 Cape May 3 Inlet 15 Magicbrain’s Cybercafe 3 Cape May 4 16 GiaRestaurant 2 5 Point State Park 5 17 Sand Castle Breakfast Restaurant 1 9 2 3 2 6 1 3 4 6 18 Tokyo Japanese Restaurant 19 The Grand Coffee Shop

BOAT/FERRY/MARINA RECREATION

1 Cape May–Lewes 1 Bay Springs Farm Alpacas FerryTerminal 2 Sunset Beach SIGHTSEEING 2 Cape May Whale Watching 3 Cape May Winery 3 South Jersey Marina ENTERTAINMENT SHOPPING ACCOMMODATIONS 4 Cape May Tennis Club 1 Cape May Bird Observatory 4 Utsch’s Marina 5 Nature Center of Cape May 2 Cape May Point Lighthouse 1 The East Lynne Theater Company 1 Victorious Antiques 1 Hotel Alcott 5 Canyon Club Resort Marina 6 Cape May Recreation Roller Skating 3 Cape May Carriage Company 2 Mid-Atlantic Center for the Arts 2 Washington Street Mall 2 Virginia Hotel 6 Harborview Marina 7 Wildwood Crest Joseph Von Savage 4 Greater Cape May Historic Society Memorial Pool 3 Sunset Cinema’s Movies on 3 Thomas Kinkade Gallery 3 Carroll B & B 7 Breezy Lee Marina 5 Southern Mansion theBeach 8 Kayak, Canoe and Water Sports 4 Wild Ocean Surf Shop 4 Inn of Cape May 8 Hinch Marina 6 Naval Air Station Wildwood 4 SeaTheater 5 Ocean Outfitters 5 Chalfonte Hotel 9 Lakeview Docks 9 Bradley’s Bikes Aviation Museum 5 Strand Movie Theater 6 Acme 6 Hotel Macomber 10 GreaterWildwood 10 Wildwood Crest Library 7 Historic Cold Springs Village 7 Bayview Inn Yacht Club 11 Old Crest Fishing Pier 8 Hereford Inlet Lighthouse 8 Hotel Icona 11 Starlight Fleet 12 Boardwalk 5 9 Congress Hall Hotel 12 Schooner Island Marina 13 Atlantic Parasail Inc. SITEDESCRIPTION SITE OVERVIEW View from Site - North 7201 Ocean Avenue (t he “Property”) is a rectangular shaped, 2.07-acre, parcel located between Beach and Ocean Av enues and Rambler and Orchid Av enues in Wildwood Crest, New Jersey. The site spans an entire block and features immediate, public right-of-beach access located on the entire 200 foot of beach frontage.

ADDRESS 7201 Ocean Avenue Wildwood Crest, NJ 08260

SITE ACCESSIBILITY The Property is located a short distance from the Garden State Parkway and Route 9 in the affluent community of Wildwood Crest. Situated two blocks east of Pacific Av enue, the major north-south roadway on the island.

EXISTING CONDITIONS • The Property is a rect angular full square block lot with 200’ of frontage along the beach between Rambler road and Orchid Road.

• There are ex ist ing 2 hotels each with off ic e, living quarters and pools. One is 110 unit Oceanview hotel andtheother the 57 unit Singapore hotel.

• The northern portion of the Property, with entry from Rambler Road, is the bike/walking path entrance that leads to the boardwalk and all Wildwood Crest amenities. • The southern portion of the Property, with entry from Orchid Av enue, completes the square of thisparcel.

REAL ESTATE TAXES Authority: Wildwood Crest Cumulative Rate: 1.176 per $100 of assessed value Parcel Number: 15000940003000010000 Lot Block Assessed Value 2016-2017 Taxes 1-L2- 94 $7,750,000 $95,557 4,5.01,6,8,10,12, L14,16 7-L9,11,13,15,5.02 94 $4,110,000 $50,673 15, 15.01 Total $11,860,000 $146,230 7 TOPOGRAPHY The Property slopes +/_ 450 Feet fromthe east to the west from Beach Avenue (the Beac h) to Ocean Avenue. The elevation of the Property ranges from approximately 9.0 feet at the entrance on Beac h Av enue to 10.2 feet at the entrance on Ocean Avenue.

FLOODPLAIN SEAPONITE VILLGE The Property lies in Floodplain Zone A7 with a base flood elevation of 10’ ac c ording to FEMA’s Flood Insurance Rate Map.

ENVIRONMENTAL A Phase I Env ironment al Site Assessment was prepared and found that there were no is s ues with the site; the Property is in conformance with the scope and limitations of ASTM Practice E1527-05.

UTILITIES The Property currently has access to telephone, gas, and electric service located at the property. Also, water and sewer is all available from the municipality.

8 DEVELOPMENT SCENARIOS 7201 Ocean Avenue currently consists of two operating beachfront hotels. Featuring entry points from Ocean Avenue, Ra mble r Road and Orchid Avenue and access to readily available utilities, the current site configuration and infrastructure allow for a more amenable construction process. Desi gn plans exist for the construction of a condominium development with a pool. Additionally, the architect has expressed the desire to include the new hotel and develop the full scale +-100 residence condominium.

Condo Rendering CONDOMINIUMS +- Number of Units Unit Mix (80) 3 Bedroom (20) 2 Bedroom Acreage 2.07 Units per acre 48.4 Parking 200 regular spaces 12 handicapped spaces Building Height 6 stories (includes ground floor parking) On-site Amenities Private Pool and Pool Deck Health Club Ground level storage

*Permissable with a Use Variance from the Municipality and CAFRA

Representative Townhome Product

9 GENERAL MARKET OVERVIEW GREATER PHILADELPHIA 295 NEW The Greater Philadelphia area, the nation’s sixth largest metropolitan area and 476 Philadelphia JERSEY second largest region on the east coast, is situated in the heart of the northeast corridor and is the keystone of major north-south, east-west highway and, rail networks. More than 100 million people are within a one day drive of Philadelphia.

ngton GREATER PHILADELPHIA FAST FAC TS:

• The Greater Philadelphia market area spans eleven counties in southeastern PA, southern NJ, and northern DE

• Six million people call this area home and three million people work in the Greater Philadelphia area.

• The gross metropolitan product for the Philadelphia area is the sixth largest in the US and the region ranks fourth nationally in total Atlantic City personal income. Additionally, Philadelphia is the fourth largest media market in the county.

• The Greater Philadelphia area has 83 degree-granting institutions which produce approximately 65,000 new graduates each year, including over 54,000 bachelor degrees or higher. Avalon 9 Stone Harbor • More than 30 companies ranked in the fortune 100 reside in the Greater Philadelphia area.

• The Greater Philadelphia area is home to the second largest DEL. Cape May 7201 concentration of health resources in the US with five medical O C E A N schools and 120 hospitals. Lewes A V E N UE

Philadelphia boasts strong economic fundamentals. The strength and desirability of Greater Philadelphia is characterized by it s economic diversity and population density. Its location, high concentration of educational medical, and government facilities, and a strong transportation network underscore these strengths. Residents in this area have always enjoyed a quality of life ranked among the highest in the country. In addition to the numerous and growing number of high quality urban housing opportunities, there are abundant desirable suburban communities that are easily accessible by one of the country’sbest highway and mass transit systems.

11 276 95 SOUTHERN NEW JERSEY The Southern New Jersey area is comprised of the lower geographical 295 portion of New Jersey that is predominantly south of Philadelphia, in 476 Philadelphia between the Delaware River and the At lant ic Oc ean. Southern New BURLINGTON Jersey contains seven counties; At lant ic , Burlington, Camden, Gloucester, Salem, Cumberland and Cape May and consists of nearly CAMDEN 3,000 square miles. Wilmington GLOUCESTER Due to its close proximity to Philadelphia, the Southern Jersey market SALEM houses a diverse base of employers including financial institutions, healthcare, education, law, engineering and a growing number of information technology businesses, many of which seek “second ATLANTIC headquarters” and back of f ic e space ac ros s state lines. Major employers in Southern New Jersey include: Caesar’s Entertainment, CUMBERLAND Atlantic City Cooper Health System, Inspira Health Network, Lockheed Martin, Public Service Electric & Gas (PSE&G) and ShopRite.

CAPE MAY

Avalon 7201 MAJOR EMPLOYERS IN SOUTHERN Stone Harbor O C E A N A V E N UE NEW JERSEY Cape May

12 Cape May, NJ CAPE MAY COUNTY Situated on the coast of New Jersey where the Delaware Bay meets the At lant ic Oc ean, Cape May is the second largest fishing port on the At lant ic Coast and the “Nation’s Oldest Seashore Resort.”

With 30 miles of scenic beaches, Cape May County’s main industry is tourism. The southernmost county in New Jersey, Cape May at t rac ts visitors from the Philadelphia, New York and Washington, D.C. areas and a large Canadian population to Av alon, St one Harbor, historic Cape May, and Wildwood.

While Cape May County’s ec onomy is heavily dependent on tourism, it also has a thriving and ac t iv e business community catering to the needs of year-round residents that tally approximately 100,000 people.

Rank Sector Cape May NJ U.S. 1 Education & Healthcare Services 25% 23% 23% 2 Leisure &Hospitality 19% 8% 9% 3 Trade, Transportation &Utilities 18% 21% 19% 4 Professional &Business Services 9% 13% 11% 5 Construction 7% 5% 6%

Cape May County is home to over 43,000 second or vacation homes, more than any ot her part of New Jersey. That growth alone has had a significant impact on new business development. Many businesses that were once open seasonally now enjoy robust sales year round.

13 Ocean City, NJ SHORE POINTS IN CAPE MAY COUNTY Generally known for their wide and gently sloping beaches, guarded waters and family- oriented vacation of f erings, the Shore Points in Cape May County are considered some of the finest shore destinations on the east coast. Beginning in Oc ean City, moving south, and ending in Cape May – each of these destinations on the east coast of f er a wide array of amenities for people of all ages.

Ocean City Known as a family-oriented seaside resort, Ocean City has prohibited the sale of alcoholic beverages within its limits since its founding in 1879. Ocean City of f ers miles of guarded beaches and features the Ocean City Boardwalk – one of the most recognizable landmarks in Southern New Jersey, stretching 2½ miles long, running north from 23rd Street to St. James Place.

Sea Isle City Sea Isle City off ers guarded beaches, a state-of -the-art playground, basketball courts, a Bayfront boardwalk and an oc eanf ront Promenade – which runs from 29th to 57th Street. The Promenade features shops, eateries, arcades and many places to sit and enjoy the roar of the ocean.

Avalon Stone Harbor, NJ Avalon, a famous seashore resort, has the motto “Cooler by a Mile” since it juts out into the Atlantic Ocean about a mile farther than ot her barrier is lands. The community is one of the most affluent along the and is home to some of the most expensive real es t at e on the East Coast and high-end boutique shopping. In 2007, Forbes listed Av alon as the 65th most expensive zip code in the United States.

Stone Harbor Neighboring Av alon to the south, and sharing the reputation for of fering a wide range of retail shopping, Stone Harbor is a resort community that attracts a large number of vacationers from the Mid-Atlantic region and Quebec, with a summer population in ex c es s of 20,000. In 2014, Forbes magazine ranked St one Harbor as the 191st most ex pens iv e ZIP code in the United States.

14 North Wildwood Wildwood Crest, NJ The widest beach in New Jersey and perhaps on the East Coast is North Wild wood. Stretching hundreds of yards wide, North Wildwood beach provides seemingly endless beach volleyball courts and room for other sport activities making it one of the best sportsbeaches in theNortheast.

Wildwood Wildwo od is a resort city, most notably recognized for its beach and the boardwalk, which is home to the Morey’s Piers amusement complex and Raging Waters and Oc ean Oasis waterparks. The beaches of Wildwood are one of only four free beaches in New Jersey.

Wildwood Crest Unlike its sister communities of Wildwood and North Wildwood, Wildwood Crest is generally set apart from the all-hours excitement of resort areas. Here, many vacationers will find some of the quietest and most undisturbed beach space. In recent years, condominiums have replaced many of the older motels such as The Grand, The Ocean Breeze, El Coronado, and The Congress Hall Hotel, Cape May, NJ Arcadia, shifting the area demographic more towards aff luent families looking for a second home and weekend retreat.

Diamond Beach Similar to its northern neighbor, Wildwood Crest, Diamond Beach has experienced a significant change in it s residential landscape ov er recent years. Following the same trend of becoming more of a summer retreat for affluent families, Diamond Beach is also home to some of the Jersey Shore’s premier oc eanf ront resorts such as The Grand at Diamond Beach, Hotel Icona and Seapointe Village. Bordering a wildlife preserve and Old Lower Thorofare Lake, Diamond Beach features outstanding beaches, high-end residential development and a close proximity to Cape May – making it one of the most desirable destinations at the Jersey Shore.

Cape May Cape May, at the southernmost end of the Jersey Shore, is America’s oldest seaside resort. A national landmark and featuring some of the most beautiful Victorian homes in the state, this shore destination off ers ev ery beach aesthetic and is also famous for being one of the top birding sites in North America.

15 Sea Isle City, NJ The Grand at Diamond Beach

North Wildwood, NJ Wildwood, NJ

16 THE WILDWOOD CREST SUBMARKET THE WILDWOOD CREST SUBMARKET LOCATION AND ACCESSIBILITY: 7201 Ocean Av enue is located in Wildwood Crest, one of the most aff luent • Less than four miles from the Garden State Parkway shore destinations in all of Southern New Jersey. Centrally located between • Five miles from Route 9 the Vict orian charm of Cape May and popular vacation destinations of Avalon and St one Harbor, the Property benefits from being situated in an • 15 minutes from the Cape May Ferry exclusive beach community that off ers excellent ac c ess ibilit y and proximity • Approximately 40 miles from the Atlantic City International to a wide variety of vacation amenities. Airport and less than 38 minutes from the Oc ean City Municipal Airport in New Jersey VACATION AMENITIES Highlighted by its close proximity to the historic and aesthetic charm of downtown Cape May, Wildwood Crest is ideally situated near a wide array of Cape May Point Lighthouse vacation amenities featuring historic sites, shopping, golf courses, entertainment and fine dining.

Cape May Point L ig hthouse Built in 1859, the lighthouse was first automated in 1946 and continues operation to this day. Rising 199 steps above the ground, the view from the top extends to Cape May City and Wildwood to the north, Cape May Point to the south, and, on a clear day, Cape Henlopen, Delaware, to the west.

Boutique Retail Scattered along 96th street and thereabouts in between St one Harbor and Avalon, the commercial shopping district in this area features some of the best retail off erings in the Jersey Shore with boutique stores such as the Global Pursuit, Nesting, Trendz and Bellanova.

Local Golf Co urses Originally developed in the 1800’s, Cape May National Golf Club is one of the most natural golf courses ever built. Nicknamed “The Natural”, the course surrounds a fifty ac re private bird sanctuary. Farther up the coast, other beach towns such as Av alon and Stone Harbor; of f er 18-hole golf courses of their own.

18 Cape May Avalon Golf Club Stone Harbor Sand Barrens County Golf Club Golf Club Park South 47

Hereford Local Area Map 6 Inlet

18 Grassy Richardson Sound 17 9 Sound Cape May 8 County Airport

47 13

16 13 5 4 12 Taylor 15 12 Cape May Sound National Golf Club 6 14 1 3 7 11 5 8 10 11 9 Sunset 4 3 Lake 9 10 RESTAURANTS 12 9 1 The Blue Pig Tavern 1 7 Jarvis 2 Lucky Bones 7 Sound 3 The Washington Inn 7 9 8 4 Lobster House 162 8 1 11 5 Sharky’s Feeding Frenzy 8 10 7201 6 Axelsson’s Blue Crab Restaurant 4 6 19 5 6 O C E A N 7 Carini’s Pizza & Italian 3 7 5 8 A V E N U E 8 Crest Tavern 9 Marie Nichol’s Old Lower 4 Cape May 10 Jamaica Me Hungry 2 Harbor Thorofare 11 Barefoot Bar & Grille U.S. Coast Guard 5 12 Duffy’s On The Lake Restaurant 2 Training Area 2 13 Boathouse Restaurant & Marina Deck 1 2 14 Uncle Bill’s Pancake House 1 4 Cape May 3 Inlet 15 Magicbrain’s Cybercafe 3 Cape May 4 16 GiaRestaurant 2 5 Point State Park 5 17 Sand Castle Breakfast Restaurant 1 9 2 3 2 6 1 3 4 6 18 Tokyo Japanese Restaurant 19 The Grand Coffee Shop

BOAT/FERRY/MARINA RECREATION

1 Cape May–Lewes 1 Bay Springs Farm Alpacas FerryTerminal 2 Sunset Beach SIGHTSEEING 2 Cape May Whale Watching 3 Cape May Winery 3 South Jersey Marina ENTERTAINMENT SHOPPING ACCOMMODATIONS 4 Cape May Tennis Club 1 Cape May Bird Observatory 4 Utsch’s Marina 5 Nature Center of Cape May 2 Cape May Point Lighthouse 1 The East Lynne Theater Company 1 Victorious Antiques 1 Hotel Alcott 5 Canyon Club Resort Marina 6 Cape May Recreation Roller Skating 3 Cape May Carriage Company 2 Mid-Atlantic Center for the Arts 2 Washington Street Mall 2 Virginia Hotel 6 Harborview Marina 7 Wildwood Crest Joseph Von Savage 4 Greater Cape May Historic Society Memorial Pool 3 Sunset Cinema’s Movies on 3 Thomas Kinkade Gallery 3 Carroll B & B 7 Breezy Lee Marina 5 Southern Mansion theBeach 8 Kayak, Canoe and Water Sports 4 Wild Ocean Surf Shop 4 Inn of Cape May 8 Hinch Marina 6 Naval Air Station Wildwood 4 SeaTheater 5 Ocean Outfitters 5 Chalfonte Hotel 9 Lakeview Docks 9 Bradley’s Bikes Aviation Museum 5 Strand Movie Theater 6 Acme 6 Hotel Macomber 10 GreaterWildwood 10 Wildwood Crest Library 7 Historic Cold Springs Village 7 Bayview Inn Yacht Club 11 Old Crest Fishing Pier 8 Hereford Inlet Lighthouse 8 Hotel Icona 11 Starlight Fleet 12 Boardwalk 9 Congress Hall Hotel 12 Schooner Island Marina 13 Atlantic Parasail Inc. Wildwood Boardwalk Wildwood Boardwalk The Wildwood Boardwalk stretches 38 blocks and is packed with stores, shops, water parks, eateries and live entertainment. Highlighted by Morey’s Piers which feature more than 100 rides, the boardwalk als o of f ers it s world-famous Sightseer Tra m Car that runs from one end of the boardwalk to the other.

Cape May Winery Cape May Winery is one of the larger winegrowers in New Jersey, containing over 70 acres of grapes under cultivation, and producing 11,000 cases of wine per year fromfour different vineyards. The Cape May Winery also features threetasting rooms and provides tours of the winery daily.

Marie Nicole’s Grill at Diamond Beach Established in 2000, Marie Nicole’s is located in Diamond Beach and offers a casual upscale dining restaurant featuring a menu of traditional Italian and American fare. Marie Nicole’s cuisine is further complemented by its selection of martinis, craft beers and eclectic wine vintages.

Jay’s on Third Voted South Jersey Magazine 2010 and 2011-2014 Best of the Shore and awarded 4 stars from The Press of At lant ic City, Jay’s on Third in Stone Harbor has become one of the premier BYOB casual fine dining Marie Nicole’s Grill at Diamond Beach restaurants in the Jerseyshore.

20 Cape May Winery & Vineyard

Jay’s on Third Cape May National Golf Club

21 RESIDENTIAL MARKET OVERVIEW RESIDENTIAL MARKET OVERVIEW Wildwood Crest is a resort community in a transformative stage. Much like its aff luent shore point neighbors of Avalon, Stone Harbor, and Cape May before it , Wildwood Crest is ex perienc ing a shift in it s residential landscape. Once considered a more casual vacation destination for families interested in spending a week at the shore, today Wildwood Crest of f ers residents and families a ‘home-away-from-home’, rather than a place to rent for a week in the summer. Older, less desirable motels and housing stock are continuing to be replaced with new luxury condominiums and townhomes, with current sales for luxury condominiums and townhomes typically trading in the $600,000 to $1+mm range.

DEMOGRAPHIC ANALYSIS Wildwood Crest is the most affluent community in the Wildwoods. A small community, the per capital income of $38,859 for Wildwood Crest is better than the Wildwoods and the United St at es , while comparable to the state of New Jersey, reflecting a high concentration of af fluent owners in this community. Household income in Wildwood Crest is currently $62,083 and is projected to increase by more than 11% ($68,912), by the year 2020.

HOUSEHOLD INCOME

Wildwoods (1) New Jersey United States Income < $15,000 15.80% 9.00% 12.80% Income $15,000 - $24,999 9.70% 6.80% 10.30% Income $25,000 - $34,999 18.10% 8.80% 10.30% Income $35,000 - $49,999 16.20% 12.20% 13.50% Income $50,000 - $74,999 14.60% 15.20% 17.60% Income $75,000 - $99,999 11.60% 13.60% 12.50% Income $100,000 - $149,999 9.00% 15.70% 12.90% Income $150,000 - $199,999 2.90% 8.80% 5.10% Income $200,000 + 2.20% 9.90% 5.10% Median Household Income $39,740 $70,538 $53,217 Average Household Income $57,986 $98,698 $74,699 Per Capita Income $27,110 $36,495 $28,957

Footnote 1. Wildwoods consists of North Wildwood, Wildwood City, West Wildwood, Wildwood Crest and Diamond Beach

23 REPRESENTATIVE SALES ANALYSIS Housing values for the residential real estate in Wildwood Crest and the surrounding area have rebounded significantly since Hurricane Sandy in 2012 disrupted the ot herwis e growing sales trend. In 2017, average pricing for condominiums and townhomes for the area was $620,000 and $582,000, respectively, representing a year over year increase of 9.8% and 6.6%. Considering the limited developable land and improving tourist activity, values should continue to climb with pricing in the range of $600,000 to $650,000 for condominiums.

HISTORICAL SALES* Number of Average Condominium Number of Average Townhome Condo Sales Sales Pricing Townhome Sales Sales Pricing 2013 94 $292,793 261 94.31% 2014 98 $347,831 240 94.89% 2015 104 $332,022 230 94.21% 2016 144 $333,236 199 94.73% 2017 150 $281,599 145 95.87% Representative Townhome Product

*Sales data includes transactions spec ific to Diamond Beach, Cape May, Wildwood Crest, Wildwood City and North Wildwood

REPRESENTATIVE CONDOMINIUMSALES Address Submarket Date Sold New/Resale Year Built Unit Size Unit Type Price Price PSF 9400 Ocean Avenue Wildwood Crest 6/1/2017 Resale 1987 1,596 Condo $785,000 $492 407 E. Monterey Avenue Wildwood Crest 3/3/2017 Resale 2009 1,786 Condo $730,000 $409 The Grand at Diamond Beach Diamond Beach 11/17/2017 Resale 2009 2,087 Condo $822,500 $394 7701 Atlantic Avenue Wildwood Crest 620/2017 Resale 2005 1902 Condo $620,000 $326 The Grand at Diamond Beach Diamond Beach 4/13/2017 Resale 2009 1,962 Condo $730,000 $372

24 RECENT DEVELOPMENT In recent years, Wildwood Crest has experienced significant new development, es pecially along the beachfront. Situated near premier vacation resorts such as The Grand at Diamond Beach, Hotel Icona, and Seapointe Village, the Property is located directly across the street from a public access to the Wildwood Crest gazebo and parks.

The Grand at Diamond B e a ch Delivered in 2009, the Grand at Diamond Beach is by far the finest HOTEL THE GRAND AT ICONA condominium resort along the Jersey Shore. Featuring a private beach, DIAMOND BEACH beachfront infinity pool with ex pans iv e deck, complete fitness center, elegant spa treatment rooms, and expansive units with private verandas and high-quality finishes, Th e Grand at Diamond beach offers its residents a luxurious vacation experience. The av erage price per unit in 2017 was $604,375 or $387 per square foot.

Hotel Icona Formerly the Pier 6600 Hotel, this 108-unit hotel resort was recently renovated and includes a sundeck, outdoor heated pool, live music stage and open-air Pavilion; making it a perfect four-season destination for family getaways, weddings, and reunions. Additionally, it 's thoughtfully- designed meeting spaces are ideal for small meetings and corporate retreats.

Seapointe Village Set on 17 oceanfront ac res , Seapointe Village is a master-planned development that off ers eleven diff erent rental options from single family homes to beachfront hotels. This gated community features a private beach, four free-form pools and outdoor spas, tennis and basketball courts, childrens playground and four gas BBQ grilling areas with fire pit and gazebo. Its newest addition, The Ibis, is a combination of condominium and townhome styles of f ering ocean and bay views from many of the residences and is just stepsfroman indoor/outdoor pool

25 NEW SUPP LY Aside from the delivery of The Grand at Diamond Beach in 2009, Wildwood Crest and the surrounding area have witnessed only small-scale single family homes or duplex-style development since the recession of 2007. In the 24-month pipeline, two beachfront developments comprising an es t imat ed 93 luxury condominium units are currently in various stages of planning and approval. Situated south of the Property, these hot el conversion projects are an ex ample of the ongoingtransformative trend in Wildwood Crest and its surrounding area.

SEAPNITE VILLAGE

PROPOSED BEACHFRONT PROJECTS

7400 7201 OCEAN DRIVE Location Beach block location Beachfront location Current Use Sand Castle Hotel Oceanview Hotel Proposed Use Condominums Condominiums Units 24 69 Unit Type (24) 3 Bed / 2 Bath (54) 3 Bed / 2 Bath (15) 2 Bed / 2 Bath Projected Average Unit Size 1,350 SF 1,567 SF Expected Delivery Spring2018 On hold N

26 Actual View of Beach KEY HIGHLIGHTS

• Wild wood Crest is situated minutes from the Garden State Parkway and is centrally located between Avalon/Stone Harbor and Cap e May – two of the most desirable and affluent residential areas on the Jersey Shore.

• The Property features a beach front address with direct public access to the beach and is surrounded by a wide array of vacation amenities and desirable beach resorts such as the Grand at Diamond Beach, Hotel Seapointe Village, and Coastal Colors.

• 7201 OCEAN Avenue contains 2.07 acres and spans the width of an entire block with the necessary infrastructure to support residential development.

• Located in the M-1A zoning district, the Property is fully entitled for the construction of condominiums, with a pool, and has layout plans for the development with a pool.

• Representative sales in Diamond Beach and the immediate area support pricing for condominiums in the $650,000 to $1mm range. TRANSACTION GUIDELINES 7201 The Oceanside Rea lt y Team at KW arepleased to present for sa le 7201 OCEAN Ocean Avenue to select investors registered via a confidentiality A V E N U E agreement. The sa le is being WILDWOOD CREST offeredon an “as-is” basis.

A 2.07-ACRE RESIDENTIAL DEVELOPMENT OPPORTUNITY IN WILDWOOD CREST, NJ

KELLER WILLIAMS TRANSACTION ADVISOR Paul Chiolo Tel: 609.522.3322, ext. 315 [email protected]