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HOWELSEN PLACE RETAIL INVESTMENT OFFERING 703 Lincoln Avenue Steamboat Springs, CO 80487

Brokerage Disclaimer This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property.

This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owners of the Property (the “Owner�), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of Colorado Group Realty, LLC. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this memorandum, certain documents, including Leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner.

Neither the Owner or Colorado Group Realty, LLC, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property.

The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.

By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or Colorado Group Realty, LLC. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or Colorado Group Realty, LLC. If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to Colorado Group Realty, LLC.

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Introduction

TABLE OF CONTENTS EXECUTIVE SUMMARY Offering Terms Investment Highlights Location Traffic Counts

PROPERTY TOURS Please schedule all property tours through listing broker and refrain from all tenant dialogue.

EXCLUSIVE MARKET CONTACT:

THE PROPERTY Floor Plan / Tenants Rent Roll Tenant Information THE MARKET Steamboat Springs Steamboat Springs - Market Information Steamboat Springs in the Media

CHRIS PAOLI Colorado Group Realty Owner/Broker 970.819.1432 Chris@mybrokers.com

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Howelsen Place - Steamboat Springs, CO

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Offering Terms Howelsen Place is home to new, Class A retail space on Steamboat’s highest traffic corner. Four retail condominiums are located at Lincoln and 7th Streets, one block away from Steamboat’s highest volume restaurants. The property is anchored by national retailer Marmot, regional bank Vectra Bank, national owner Steamboat Ski Corp., and two local established businesses.

The City of Steamboat Springs has committed over 10 million dollars to downtown improvements which are currently underway. This is the ideal opportunity to purchase a high quality investment ahead of the positive changes. Large windows and high quality retailers draw the attention of all pedestrians. Located in the same project as two of Steamboat's most popular restaurants, there is always a steady stream of both pedestrian and vehicular traffic.

Howelsen Place is near new construction, completed in 2009 to the highest quality construction standards. All maintenance is handled by the building HOA, including snow melted sidewalks, making it attractive for pedestrians during the busy ski season.

Five reserved, dedicated parking spaces are included in the package.

PR OP ERTY SU MMARY PROPER T Y T YPE:

R e t ai l C ondos

YEAR C O MPL ET ED : 2009 RENTABL E S Q UA R E FEET : 9, 712 # OF R ET A I L S PA C ES : 5 s p ac e s i n 4 c ondos PARKIN G S PA C ES : 5 i nc l ude d

OFFE RING TERMS OFFER I N G PR I C E:

PRO FO R MA N O I PRO FO R MA C A P R A T E: OFFER I N G PR I C E PER S F:

$4, 375, 000 $28, 738 p e r m ont h 8. 0% $450. 4

S n ow m e l t S i dewalks

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Investment Highlights • 100% leased retail space in downtown Steamboat Springs, Colorado.

• Internationally recognized location - Steamboat Springs is a Top 10 ski resort as ranked by multiple ski industry magazines.

• Located on Lincoln Avenue at 7th Street in Howelsen Place, downtown Steamboat’s premier mixed use project.

• Minimal management requirements with HOA structure.

• Five reserved, dedicated parking spaces included.

• City of Steamboat Springs has committed funding for over $10 million of capital investments downtown including a city park at 6th & Yampa Street, a pedestrian Promenade, festive lighting along Yampa Street, and improved sidewalks and lighting throughout downtown.

• Ample public parking nearby.

Location P

P

P

6TH STREET

9T H ST R E E T

LIN CO LN AVENUE

P

Located on the prime corner of 7th and Lincoln Avenue, Howelsen Place Retail is the key corner for foot traffic in Steamboat Springs. The City of Steamboat Springs has committed to a major capital investment on Yampa Street, which will ultimately create the pedestrian flow shown in yellow.

Centally located and surrounded by ample public parking, the commercial spaces at Howelsen Place are ideally positioned to benefit from the investments in downtown Steamboat Springs.

YA MPA S TREET PARK

PARK

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Location - Traffic Counts

YA M

LIN

PA

YA

S T.

EET 6th STR

CO

LN

AV

E.

MP R IVE AR

TRE S h t 5

O n H ig hway 40/ L i n col n Ave n ue e astbo und o f 7th S tre et: O n H ig hway 40/ L i n col n Ave n ue westbo und o f 7th S treet:

ET

2 0 ,0 0 0 cars per day 2 3 ,0 0 0 cars per day

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Floor Plan/Tenants

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Pro Forma Rent Roll Suite No.

Tenant Name

Rent Annual

Rent Monthly

Rentable SF

Lease Term

Escalations CAM Annual Tax Annual CPI + 1% on each anniversary of Commencement Date (2 ‐ $ 13,017.48 $11,373.60 5 Year Options @ Market Rent)

2,635

NNN Lease 12/15/2008 thru 2/14/2019

4/30/2016 ‐ $68,438 (No Options)

$8,897

B106

VECTRA BANK

B105

SKI AND RESORT CORP

1,801

NNN Lease 9/30/2013 thru 4/30/2017

B104

GCP Sales Center

2,215

NNN Lease Closing Date + 12 Months

No Escalations or options

CPI on each anniversary of Commencement Date (3% Min ‐ 6% Max) One 5 Year Option @ Market

B103B

JMP

960

NNN Lease 11/1/2015 thru 10/31/2020

B103A

Marmot

2,101

NNN Lease 4/1/2016 thru 8/31/2019

Total

9,712

$ 349,918 $ 29,160

CAM & Tax Reimbursment

Net Cash Flow

$24,391.08

$7,774

$16,671

$0

$9,220

$9,557

$18,777

$0

$4,743

$4,144

$8,886

$0

$10,943

$9,561

$20,503

$0

($46,820)

($42,409)

$89,229

$0

• P ro p e r t y can be sol d a s a whol e or as indiv idual condos.

• P ro p e r t y i s f u ll y m a na ged by a propert y management company.

• Sa l es C enter- B104, sel l er w i l l l ea se back for 12 mont hs at a rate of $30 per sq u are fo o t , NNN. Di scl a im er : T h is i nfor m ati on i s a c c urate to t he best of our k nowledge. It is you r re s p o n s ib ilit y to ch eck all info r m at io n a n d i n s u re i t s a c c ura c y. We ta ke no liabilit y for any numbers or calculat ions wh ich are in co r re ct .

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Tenant Profiles - Vectra Bank Name of Lessee (Legal) Vectra Bank Colorado, NA Guaranty Signature N/A Size of Space (SF) 2,578 SF Lease Term

12/3/2007-2/14/2019

Name of Lessor GCP-Steamboat, LLC Name of Lessee (DBA) Vectra Bank Colorado, NA Type of Ownership Colorado Corporation Address (Unit #) 703 Lincoln Ave., B-106 B ASE RENT

Per Lease: $6,874.67 per month to increase on each anniversary of commencement date by annual percentage increase of CPI + 1%

OPTIONS/TERMS

(2) 5 Year Options @ Market: Notice to be given at least 6 months, but no more than 15 months prior to expiration of the Initial Lease Term.

PERMITTED USE

Bank branch and all uses associated therewith

REPORT SALES VOLUMES AND/OR PERCENTAGE RENT

N/A

Current Annual Monthly

Per Square Foot

$97,251 $8,104.27 $36.91

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Tenant Profiles - Steamboat Ski & Resort Corp Name of Lessee (Legal) Steamboat Ski & Resort Corp Guaranty Signature N/A Size of Space (SF) 1,801 SF Lease Term 9/30/2013-4/30/2017

Name of Lessor GCP-Steamboat, LLC Name of Lessee (DBA) Steamboat Ski &Resort Corp Type of Ownership Delaware Corporation Address (Unit #) 703 Lincoln Ave., Ste. B-105

B ASE RENT To 4/30/2015

To 4/30/2014 Annual Monthly

Per Square Foot

$54,030 $4,502.50 $30.00

Annual Monthly

Per Square Foot

To 4/30/2016 $57,632 $4,802.67 $32.00

OPTIONS/TERMS

None.

PERMITTED USE

Retail sale of summer and winter outdoor related merchandise and gifts.

REPORT SALES VOLUMES AND/OR PERCENTAGE RENT

Tenant must provide Landlord quarterly gross sales during the preceding 3 months.

Annual Monthly

Per Square Foot

To 4/30/2017 $64,836 $5,403.00 $36.00

Annual Monthly

Per Square Foot

$68,438 $5,703.17 $38.00

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Tenant Profiles - Sales Center

Name of Lessee (Legal) GCP-Steamboat, LLC Guaranty Signature N/A Size of Space (SF) 2,215 SF Lease Term 1/1/2017-12/31/2017

Name of Lessor GCP-Steamboat, LLC Name of Lessee (DBA) Ski Town LP Sales Center Type of Ownership Address (Unit #) 703 Lincoln Ave., Ste. B-104 B ASE RENT

$ 36 per square f oot

OPTIONS/TERMS

1 year lease

PERMITTED USE

Sales Center

REPORT SALES VOLUMES AND/OR PERCENTAGE RENT

N/A

L eased to GCP-S t e amboat, L L C w i t h t r i p l e A credi t as the How e l s e n Pl ace Sal es C e nt e r .

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Tenant Profiles - JMP Name of Lessee (Legal) JMP Holdings, LLC Guaranty Signature John Stephen Smithson and Mary J Smithson, jointly and severally (Individuals) Size of Space (SF) 960 SF Lease Term November 1, 2015 - October 30, 2020

Name of Lessor GCP-Steamboat, LLC Name of Lessee (DBA) Mary Jane's Type of Ownership Colorado LLC Address (Unit #) 703 Lincoln Ave., Ste. B-103B

B ASE RENT Through 9/16

Through 10/17

Through 10/18

Through 10/19

Through 10/20

Annual $36,480 Monthly $3,040.00 Per Square Foot $38.00

Annual $37,574 Monthly $3,131.20 Per Square Foot $39.14

Annual $38,702 Monthly $3,225.14 Per Square Foot $40.31

Annual $39,862 Monthly $3,321.89 Per Square Foot $41.52

Annual $41,059 Monthly $3,421.55 Per Square Foot $42.77

OPTIONS/TERMS

(1) 5 Year Option @ Market with annual increases: Notice to be given at least 12 months, but no more than 15 months prior to expiration of the Initial Lease Term.

PERMITTED USE

Retail sale of jewelry and related accessories

REPORTING SALES VOLUMES AND/OR PERCENTAGE RENT

Quarterly copies of sales and use tax returns required to be submitted for state and local sales tax purposes showing Gross Sales; Annual copy of federal income tax form; Annual upon request: balance sheets, net worth statements and other financial data

TENANT RELOCATION PROVISION

21 Days notice to Substitute Premises of similar size; Landlord may terminate lease in six months if tenant declines relocation

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Tenant Profiles - Marmot

Name of Lessee (Legal) Guaranty Signature Size of Space (SF) Lease Term

Name of Lessor GCP-Steamboat, LLC Name of Lessee (DBA) Marmot Type of Ownership Address (Unit #) 703 Lincoln Ave., Ste. B-103A

Steamboat Ski & Resort Corp.

N/A 2,101 SF April 1, 2016-August 31, 2019

B ASE RENT Through 8/17 Annual Monthly

Per Square Foot

Through 8/18 $79,838 $6,653 $38

Annual Monthly

Per Square Foot

OPTIONS/TERMS

Option to renew for additional 3 years at prevailing market rate for comparable space and renewed terms.

PERMITTED USE

Retail sale of outdoor related merchandise.

REPORT SALES VOLUMES AND/OR PERCENTAGE RENT

Quarterly copies of sales and use tax returns required to be submitted for state and local sales tax purposes showing Gross Sales.

Through 8/19 $81,939 $6,828 $39

Annual Monthly

Per Square Foot

$84,040 $7,003 $40

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Steamboat Springs

Overview Often referred to as Ski Town, USA,ÂŽ and known for its World Class skiing facilities, Steamboat Springs was originally a summer resort. Travelers in the early 1900's visited Steamboat Springs in the summer months for the natural hot springs and vast hunting and fishing opportunities. Today, summer activities span the spectrum, including three championship golf courses, an indoor-outdoor tennis center, biking, hiking, kayaking, fly fishing, and horseback riding right in town.

Howelsen Hill, which sits directly across the Yampa River to the south of Howelsen Place, opned in 1915 and is the oldest continuously operated ski area in Colorado. The complex has the largest and most complete natural ski-jumping complex in North America. Howelsen Hill is also the home of the Steamboat Springs Winter Sports Club, the oldest ski club west of the Mississippi. The club provides training in alpine, Nordic, freestyle, and snowboarding for athletes of all skill levels.

Location Steamboat Springs is located approximately 150 miles northwest of Denver, and can be accessed via Highway 40 or the Yampa Valley Regional Airport, which has inbound flights from 11 major airports.

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Steamboat Springs - Market Information LABO R FOR C E S T A T I ST I C S - R OUTT CO U N T Y 2 0 1 5 L A B O R F O R CE :

14,458

EM P L O Y E D :

13,852

U N E MP L O Y ED : U N E MP L O Y ME N T R A T E :

606 4.2%

S o u rce: Yam pa Val l ey Data Partn e r s

A CCO M MO D A T I O NS - ST E A M BOAT SP RIN G S 2 0 1 N U MBE R O F P I LLO WS:

20,542

N U MBE R O F BE DS:

11,411

N U MBE R O F UN I T S:

3,390

S o u rce: S t eamboat Spri ngs Cham be r

Steamboat Signature Events: • Winter Carnival • Pro Rodeo Series • Weekly Farmers Market • July 4th Celebration and Parade • First Friday Art Walk • Free Concert Series • Mustang Rally • Balloon Rodeo • Art In The Park • Triathlon and Running Series • Town Challenge Bike Race Series

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Steamboat Springs - Market Overview PO P ULA T I O N

5 MI L ES

10 M I LES

M EDI A N A G E :

3 7 .5

37.9

M EDI A N A G E (M A LE ): M EDI A N A G E (F E M A LE ) :

3 6 .1 3 8 .9

36.5 39.4

5 MI L ES

10 M I LES

2 ,8 1 6

7,515

2 .3

2.3

$ 8 3 ,1 01 $ 6 1 9 ,2 80

$82,989 $631,221

TOTA L P O P U L A T I ON :

HO U S EH O LD S & INC O M E

TOTA L H O U S E HOLD S: # P ER S O N S P E R HH : AV ER A G E H H IN COM E : AV ER A G E H O USE VALUE:

6 ,5 1 3

19,974

W H Y STEAM B OAT? • Bet ween 280,000 and 330,0 0 0 v is ito rs co m e to Steam b o at Sp r in gs annually. (S ource: S teambo at Sp r in gs C h am b er ) • S teamboat is Colorado's fif t h large st s ki res o r t b as e d o n s kiab le acreage and ranks second i n t h e state fo r t h e m o st n u m b e r o f t rails .

• Eight mont h tourist season wit h b alan ced winte r an d s u m m e r s eas o n s .

• Downtown S teamboat resta u rant s ales h ave in creas e d 4 . 1 % an n u ally over t he past five years an d are 2 0 % ab ove t h e ir p re-re ce s s io n p e ak.

• S teamboat is t he seat of Ro u tt C o u nt y an d h as an e st im ated 1 2 ,2 6 0 resident s. Routt Count y has an est im ate d 2 3 ,8 6 5 res id e nt s .

• A v ibrant , historic Downtow n d ist r ict is h o m e to 1 2 7 retail s h o ps , including 43 restaurant s.

• F ut ure tourism draw and ups id e f ro m Steam b o at 's cu r rent d evelo p m ent of t he Yampa S t reet Promen ad e.

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Steamboat Springs - Recent News

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ht t p : / / w w w . f or b es.com/p ictu r es /ehkj 45egi hd/ s t e am b o a t - spr in g s-co-2 /

http: //n ypost .co m/2015/03/02/stea m b oat-spring sco lo r ados-best-stop - f or - ski - sea son s- last-c all/

htt p://w w w .nyt i m e s . c om /i nt e r ac t i ve /2015/01/11/ travel /52- pl ace s -t o-go-i n-2015. ht m l ? _ r =0

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Steamboat Springs - Recent News

http ://w w w. steam boattoday.com /news/2014/jul/06/riseya m p a- st re et- h ow-qui et-di r t-roa d-tur ned-chaot /

htt p://w w w.steam b o atto d ay. co m / n ews / 2 0 1 4 /o ct / 0 8 / m ovesteamboat-downtown -m akeover /

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Exc lusive Market Co ntacts

ThePaoliGroup.com

A division of Colorado Group Realty ThePaoliGroup.com

A division of Colorado Group Realty

Chris Paoli Amy Brown • Randi Fox Kelly Conway • Chris Sias 970.819.1432

Chris Paoli Amy Brown • Randi Fox Kelly Conway • Chris Sias 970.819.1432

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