LAKE OROVILLE

THE RIDGE

70 Finished Lots | Investment Opportunity in Oroville, CA INVESTMENT SUMMARY | GALLELLI REAL ESTATE

INVESTMENT SUMMARY • 70 finished PUD lots with utilities to site • Not in a flood zone • Gated community • +/- 17.1 acres with average lot size +/- 10,500 SF • Minimum 1,900 SF detached single family residence • fees estimated to be $40,000 per lot for 2,000 SF residence • Converting raw land into finished lots similar to The Ridge is estimated to be $50,000 - $60,000 / lot. • In 2018 & 2019, The Ridge had 6 transactions of home resales for homes that were built in 2006 & 2007: - Average Sales Price: $417,333 - Average Square Footage: 2,084 - Average Land Size: 10,163 - Average Age: 2006/2007 - Average Sales Price / Square Foot: $200 • In 2019, the neighborhood directly to the north of The Ridge known as the Kelly Ridge neighborhood, had 63 transactions. The Kelly Ridge neighborhood is bordered on the south by Olive Hwy 162, on the west by Canyon Dr and on the north & east by . - Average Sales Price: $337,508 - Average Square Footage: 1,897 - Average Land Size: 11,443 - Average Age: 1988 - Average Sales Price / Square Foot: $178

02 | THE RIDGE 70 FINISHED LOTS THE RIDGE | 03 THE OFFERING | GALLELLI REAL ESTATE

THE RIDGE THE OFFERING MARKET DRIVERS Gallelli Real Estate is delighted to present the “The Ridge”, 70 finished residential lots • Oroville Medical Complex (Hospital) adding 5 story tower, doubling its square in Oroville, CA ready for vertical . The site offers unparalleled opportunity footage which will add 700 new jobs to build out the local market’s premier and deliver the end user a • Butte County agriculture production averaged over $700,000,000 / year for 2008 – prestigious residential product. 2018 which is led by Rice, Almonds and Walnuts. • Oroville is home to the Butte County seat and employs over 2,200 individuals The Ridge is a fully gated PUD that sits atop of the rolling hills of Butte County just • Lake Oroville and Bidwell Canyon Marina is 3 miles from The Ridge. Lake Oroville is south of Lake Oroville. Conveniently, The Ridge is just a few miles from Bidwell known as one of the best fishing lakes in the state of and hosts many Canyon Marina and Lake Oroville providing for an abundance of recreational activities. fishing tournaments The of Oroville is the Butte County seat and a short drive to the west along Olive • Oroville is home to an abundance of outdoor recreation such as camping, hiking, Hwy 162 which provides many restaurants, shopping and services. The Ridge offers cycling and water activities. a serene location that is relaxed and comfortable while providing excellent access to • California State University, Chico is in Butte County and is the state’s 9th ranked nature’s favorite activities. public university • Several national and international companies have chosen to put facilities in Price To Be Determined By Market Oroville: Pacific Coast Producers, Graphic Packaging International, Roplast Industries, Sierra Pacific Industries and RCBS. Quantity of Lots 70 • The regional population growth rate for the next 5 years is expected to be 4.5x the US population growth rate Current Status Finished Lots PROPERTY CONDITION Average Size 10,500 SF The Ridge is comprised of 70 finished, ready to build lots with utilities to the site. The gated community has a completed featuring a kid’s , Lots over 10,000 SF 44 diamond, court and picnic tables. The community park has great views of the valley floor to the west. The project began with 39 homes built in 2006 and 2007. Security Gated LOCATION & ACCESS HOA $127 / mo (est.) The Ridge is located east of the Oroville city hub and south of the Bidwell Canyon Marina at Lake Oroville. The site is accessed from Olive Highway 162 just west of the Utilities To Site Kelly Ridge Road intersection via south on Saddle Drive and left on Lariat Loop through the security gates. Special Feature Community Park

THE RIDGE | 05 THE LOCATION | GALLELLI REAL ESTATE

THE LOCATION

OROVILLE TOP EMPLOYERS Employer 2010 2019

County of Butte 2,388 2,283 *Oroville Medical Complex 1,008 1,454 Pacific Coast Producers 594 1,060 Wal Mart Stores, Inc. 302 386 Graphic Packaging International 0 220 Roplast Industries, Inc. 111 121 Home Depot USA 113 121 Sierra Pacific Industries 114 124 Ammunition Accessories 96 104 City of Oroville 112 91 Currier Square Spe. LLC 106 118

The city of Oroville is home to a diverse collection of employers. The trend over the 9 year spread presented above depict stable or slight growth to employment from the City’s top employers. Oroville retains a healthy 4.9% unemployment rate which is better than other local markets: Yuba City 7%, Chico 6%, Marysville 7%, Redding 5% and Orland 6.5%.

*Oroville Medical Complex (Hospital) began expansion in 2018 to add a new 5 story tower increasing its size by 165,000 square feet which will double its current space. There will be approximately 700 new jobs created at the Oroville Medical Complex once the new tower opens. It is anticipated that due to the hospital expansion, the surrounding area will also increase business activity and create additional jobs to support the influx of hospital staff.

06 | THE RIDGE THE RIDGE | 07 THE LOCATION | GALLELLI REAL ESTATE

THE CITY OF OROVILLE Originally established as one of the first gold mining locations in California, Oroville Thermalito Diversion Pool at +/- 240 feet elevation and water flows to the west. The sits along the banks of the Feather as it flows from the mountains Ridge is not in a flood zone and does not appear to have any risk of flooding. to the California Central Valley. Oroville serves as the county seat for Butte County and offers small town living with first class access to natures best: cycling, hiking, Lake Oroville has 1,000,000 visitors annually and is known as one of the best Bass equestrian, camping, swimming, fishing, boating and other water activities. lakes in California and hosts several fishing tournaments throughout the year. In addition, Lake Oroville is the only lake in California where you can fish for Coho The city has over $540,000,000 in taxable retail spending annually. Oroville provides Salmon. great opportunity for the workforce. Currently under expansion, Oroville Medical Complex (Hospital) will double its size with a new 5 story facility and add 700 new jobs There are 15 individual equestrian camping sites at Loafer Creek. Each campsite has upon completion. The expansion will include ambulatory care services, intensive care room for two horses, plenty of and access to a 17.5-mile loop trail. The facility unit, labor and delivery center, and two floors for medical / surgical units. The County offers horse shower stalls, feeding troughs, a circle ring and beautiful scenery. of Butte employs over 2,200 individuals and is seated in Oroville. Lake Oroville offers a variety of camping options. Popular choices are sprinkled around Lake Oroville was created by the construction of the Oroville in 1967. The dam the lake for tents and RVs. Lake Oroville also has one of the most unique options you is the largest earth filled dam in the country at 775 feet tall and the spillway was will find which is floating campsites that are on a double decker platform that can fit recently repaired and upgraded at a cost of $1.1 billion. The lake has 167 miles up to 15 people. Boat in campsites are available around the lake which provide more of shoreline and provides for many recreational opportunities. The lake totals over privacy as these sites are only accessible by boat. 15,000 acres and has a maximum depth of 695 feet boasting over 3.5 million-acre feet of water making Lake Oroville the second largest in California. Biking and Hiking are some of the locals most favorite activities at Lake Oroville. There are a variety of trails for all skill levels. , a 410-foot waterfall located on The Ridge (subject property) sits at +/- 900 feet elevation and looks down at the valley the Fall River which is a tributary of the middle fork of the offers two floor to the west. The spillway which is north west from The Ridge, exits into the hiking trails that are 7 and 9 mile loops.

08 | THE RIDGE N 5 MILE

LAKE OROVILLE HIGHWAY 99 20 MINUTE DRIVE 13.3 MILES 3 MILE

DOWNTOWN OROVILLE 1 MILE 10 MINUTE DRIVE 5.5 MILES

THE RIDGE THE OROVILLE MARKET | GALLELLI REAL ESTATE

OROVILLE THE MARKET

Number of 2019 Home Sales 124 (homes built in 1995 or newer) In 2019, the 52 home Olive Grove development by DR Horton was built and sold • Average Sales Price: $286,563 Average Sales Price $312,938 • Average Square Footage: 1,584 • Average Land Size: 7,112 Average Square Footage 1,644 • Average Age: 2019 • Average Sales Price / Square Foot: $181 Average Land Size 9,253 • All homes were sold from February 26, 2019 to December 15, 2019

Average Age 2010

Average Sales Price / Square Foot $190 In 2019, 84 homes sold for $350,000 or more • Average Sales Price: $410,304 • Average Square Footage: 2,123 • Average Land Size: 14,447 • Average Age: 1982 • Average Sales Price / Square Foot: $193

10 | THE RIDGE • In 2019, the neighborhood directly to the north of The Ridge known as the Kelly Ridge N neighborhood, had 63 transactions. The Kelly Ridge neighborhood is bordered on the south by Olive Hwy 162, on the west by Canyon Dr and on the north & east by Lake Oroville. • Average Sales Price: $337,508 • Average Square Footage: 1,897 • Average Land Size: 11,443 • Average Age: 1988 • Average Sales Price / Square Foot: $178

• In 2018 & 2019, The Ridge had 6 transactions of home resales for homes that were built in 2006 & 2007: THE RIDGE • Average Sales Price: $417,333 • Average Square Footage: 2,084 • Average Land Size: 10,163 • Average Age: 2006/2007 • Average Sales Price / Square Foot: $200 SALE COMPARABLES & DEMOGRAPHICS | GALLELLI REAL ESTATE

OROVILLE MUNI AIRPORT SALE COMPARABLE N 69 LOT COMP SITE • A local developer closed on 69 finished lots on 10/18/2019. The development will include 3 floor plans with 9 elevations ranging from 1,457 SF to 1,844 SF. The average lot size is 7,020 SF and were purchased for $2,870,000 which computes to $41,594 / lot. These lots are located at the SE corner of Blvd W and Larkin Rd.

This comparable development site is considered inferior to The Ridge in several aspects:

Location – The comparable site is located on the west side of Oroville near the DOWNTOWN OROVILLE Oroville Muni Airport and other commercial development on the valley floor. The comparable site is within the Oroville Dam breach inundation map. Whereas The Ridge is located on the east side of Oroville atop the rolling hills of Butte County. Generally, the homes on the east side sell for a higher price point than those compared to on the west side. The Ridge is outside and clear of the Oroville Dam inundation map.

Security – The comparable site is not gated and can be accessed without interruption while the The Ridge has security gates accessed via gate code only to homeowners.

Design – The comparable site has 2 main cul de sacs and the design of the roadways through the development will tend to deliver higher traffic. The Ridge is designed with 5 cul de sacs and two loops. This creates a quitter and safer living experience because there is less traffic. The Ridge has its own community park with a baseball diamond, basketball court, children’s playground and several park benches. In addition, The Ridge delivers great views of the valley floor. THE RIDGE Size – The comparable site has an average lot size of 7,020 SF while The Ridge LAKE OROVILLE delivers an average lot size of 10,500 SF (44 lots over 10,000 SF).

12 | THE RIDGE BUTTE COUNTY DEMOGRAPHICS

BUTTE COUNTY THE RIDGE DEMOGRAPHICS 3 Mile 5 Mile 10 Mile Regional Known as the “Land of Natural Wealth and Beauty” 2010 Total Population 8,616 25,892 49,389 350,736 Butte County offers unparalleled landscape blending the 2019 Total Population 8,919 26,653 50,961 369,175 Sierra Nevada’s to the California Central Valley. Butte County encompasses a wide array of industries, culture, 2024 Total Population 9,090 27,102 51,929 379,781 recreation, opportunities and beauty. Residents are 2019 Average Household Income $71,997 $58,382 $55,742 $71,208 proud of the thriving agriculture products that are grown 2019 Median Household Income $47,268 $43,054 $40,839 $49,819 in Butte County. Some of California’s best olives, fruit, 2019 White Collar Job Share 53% 50% 48% 56% rice and nuts have been grown in Butte County for more than 100 years. The county is home to California State 2019 Blue Collar Job Share 47% 50% 52% 44% University, Chico and Sierra Nevada Brewing Company. Butte County is eagerly awaiting to share all its beauty, • The regional area includes Chico (20 miles) and Yuba City (25 miles) which are history and amenities to The Ridge homeowners. considered one blended MSA. The local population travels throughout the region regularly • Many people have moved from the Bay Area to the Central Valley, including this region to take advantage of lower living expenses, recreational activities and larger homes • Growth rate within the region for 2010 to 2019 was 5.26% • Growth rate within the region expected for 2019 to 2024 is 2.87%

CLIMATE The Ridge is +/- 900 feet above sea level and Oroville receives on average 34” of rain each year over an average of 69 days each year. Oroville averages 243 sunny days per year which is higher than the national average of 205 days. The BestPlaces Comfort Index for Oroville is 8.1 where the national average is 7.

July is the hottest month for Oroville with an average high temperature of 95 degrees F while January is the coldest with an average nighttime temperature of 37 degrees F.

THE RIDGE | 13 BUTTE COUNTY DEMOGRAPHICS | GALLELLI REAL ESTATE

14 | THE RIDGE POINTS OF INTEREST (DISTANCE FROM THE RIDGE)

Local Services Miles Restaurant Yelp Stars Miles

Bidwell Canyon Marina 3.2 Wagon Wheel Market 4.5 2 Oroville Hospital 5.3 Gold Country Casino Resort 3 3.2 Fed Ex 5.5 Righteous Burger 4 4.6 Lords Gym 5.7 La Costena De Acapulco 4 5.8 EDUCATION (DISTANCE FROM THE RIDGE) USPS 5.8 Gourmet Kitchen 4 5.8 School Name Level Miles UPS 5.8 Jake's Burgers & More 4 5.9 Ophir Elementary School K - 5 3.1 Level 10 CrossFit 5.9 Jenn's Café 4 5.9 Ishi Hills Middle School 6 - 8 5.1 Raley’s 6 Souper Subs 4 5.9 Las Plumas High School 9 - 12 6.8 Ampla Health 6 Boss Burger 4 5.9 Butte College Junior 19 Oroville Yoga Center 6.2 Nori Asian Kitchen + Sushi 4 6.1 CSU, Chico State 30 YMCA 6.4 The Exchange 4.5 6.2 Grocery Outlet 6.5 Miner's Alley Brewing Co. 4 6.2 There are several options for education in the local market. In FoodMaxx 6.5 Pho Noodle 4 6.2 addition to the grade schools listed above there are 4 private schools within 5 miles of The Ridge which can deliver educational alternatives Feather River Tribal Health 6.6 Mug Shots Coffee House 4.5 6.2 to the public school system. Anytime Fitness 6.7 The Italian Kitchen 4 6.2 Smart & Final 7 Tabletop Restaurant 4.5 6.4 In February 2020, Las Plumas High School won its 5th Butte County Academic Decathlon in the last 6 years. In recent years, The Fit Republic 7.2 The Good Earth Coffee & Tee 4 6.5 California Agriculture Teachers’ Association awarded two Teacher of Oroville Gymnastics Academy 7.4 Vallarta Grill 4.5 6.8 Excellence Awards to Las Plumas High School educators. Table Mountain 10 RJ Caribbean Restaurant 4.5 7

Butte College is a full-service community college offering a variety Oroville Muni Airport 10.5 The Waffle Shop 4 7.3 of programs and athletics. CSU, Chico is ranked the 9th best public Butte Community College 19 Feather Falls Casino Brewing 4 7.6 university in California for 2020 by US News in their annual ranking publication.

THE RIDGE | 15 CONFIDENTIALITY & DISCLAIMER STATEMENT The material contained in this Offering Memorandum is confidential, furnished solely for the purpose of considering the purchase of The Ridge located in Oroville, CA and is not to be used for any other purpose or made available to any other person without the express written consent of Gallelli Real Estate Services or the Owner. The material is based in part upon information supplied by the Owner’s consultants, architects, advisors, and in part upon information obtained by Gallelli Real Estate from sources it deems to be reliable. Summaries contained in the Offering Memorandum of any legal or other documents are not intended to be comprehensive statements of the terms of such documents but rather only outlines of some of the principal provisions contained therein. In accordance with our standard practice, this Offering Memorandum has been prepared solely for informational purposes and does not constitute all or any part of an offer or contract. It is designed to assist a potential investor in determining whether to proceed with an in-depth investigation of the subject project. Gallelli Real Estate strongly recommends that each potential investor review the information contained in this brochure with its accountants, attorneys and tax advisors.

Any projections contained herein represent best estimates based on assumptions considered reasonable under the circumstances. No representations or warranties, expressed or implied, are made that actual results will conform to such projections. This document is provided subject to errors, omissions, prior sale or lease, change of price Gary Gallelli | Partner, CEO or terms, other changes in the information and is subject to modification or withdrawal CA DRE # 01099383 | 916 784 2700 | [email protected] without notice.

Aman Bains | Associate No Warranty Or Representation Expressed Or Implied Is Made By Gallelli Real Estate Or CA DRE #02101492 | 916 784 2700 | [email protected] Any Of Their Parent, Affiliated Or Subsidiary Entities As To The Accuracy Or Completeness Of The Information Contained Herein. Prospective Investors Should Make Their Own Pat Ronan | Assistant Vice President Investigations And Conclusions Without Reliance Upon The Material Contained Herein. CA DRE # 01410074 | 916 784 2700 | [email protected]