OFFERING MEMORANDUM PONDEROSA APARTMENTS COLDSTREAM MEADOWS 9104 MACKIE DRIVE, COLDSTREAM, BC

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PONDEROSA APARTMENTS | COLDSTREAM MEADOWS

9104 MACKIE DRIVE, COLDSTREAM, BC

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INVESTMENT OVERVIEW . . . 1

Property Summary . . . 2

Photos . . . 6

DEVELOPMENT OVERVIEW . . . 17

Existing . . . 19

New Development & Investment Opportunities . . . 20

FINANCIAL ANALYSIS . . . 23

Pro-Forma . . . 24

MARKET OVERVIEW . . . 27

SHAY DADON

Personal Real Estate Corporation

Vice President, Hospitality & Senior Housing, Canada Direct: 604.630.3408

shay.dadon@lee-associates.com

MARKET ADVISORS

OFFERING MEMORANDUM DISCLAIMER

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 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 references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to any interested persons. In this Memorandum, certain documents are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the material 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 Lee & Associates Vancouver nor any of their respective offi cers, directors, employees, affi liates or representatives make any representation or warranty, express 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 and all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with our without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any person 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 satisfi ed or waived.

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PONDEROSA APARTMENTS AT COLDSTREAM MEADOWS 1

INVESTMENT

OVERVIEW

PROPERTY SUMMARY

PROPERTY PHOTOS

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EXECUTIVE SUMMARY

Shay Dadon

Personal Real Estate Corporation

Vice President, Hospitality & Senior Housing, Canada Direct: 604.630.3408

shay.dadon@lee-associates.com

PROPERTY HIGHLIGHTS

Coldstream Meadows is the anchor retirement Community within Coldstream, British Columbia

Development permits, zoning, and services have been established to accommodate rapid construction of additional units

10 minute drive to Downtown Vernon and 30 minutes to Kelowna International Airport 10 minute drive to Vernon Jubille Hospital Mixed unit ownership between units owned by Coldstream Meadows, individual owner/ occupants, and units owned by investors

INFRASTRUCTURE

The Coldstream Meadows site is fully serviced with all utilities including:

• Municipal water supply 8” looped service for potable water and fire protewction

• On-site storm water collection and ground infiltration system and municipal sanitary sewer

• BC Hydro electrical services underground 25kv distribution system

• TELUS fibre optic service and Shaw Cable • Fortis Natural Gas

Consists of 75 existing residential units with development potential of additional retirement and multifamily units

LOCATION OVERVIEW

DISTRICT OF COLDSTREAM

The property is zoned multi-family residential seniors housing and in the OCP as seniors housing.

COLDSTREAM, VERNON, AND THE REGIONAL DISTRICT OF NORTH OKANAGAN (RDNO)

Coldstream is defined as a retirement community and destination. RDNO is one of the communities in BC with the highest percentage of seniors. We have an incredible number of seniors moving to the area from throughout BC and other parts of Canada.

LOCAL AMENITIES

The following is a short list of what the community has to offer:

• Silver Star Mountain Resort and Sovereign Lake for Nordic and downhill skiing

• Predator Ridge, The Rise, Vernon Golf and Country Club and many more golf opportunities • Okanagan Lake, Kalamalka Lake and associated provincial parks

• Kelowna International Airport and UBC Okanagan just 30 minutes from Coldstream Lee & Associates Vancouver is pleased to present Ponderosa Apartments at Coldstream

Meadows. Coldstream Meadows is a 55+ community located in beautiful Coldstream, BC, a community adjacent to Vernon. It is located in a suburban/rural setting on 20 acres surrounded by Coldstream Creek, hobby farms, and a municipal park. Coldstream Meadows is located within minutes of Kalamalka Provincial Park, Kalamalka Lake, golf courses, parks, hiking trails and much more. All services including shopping, restaurants, hospital, doctors’ offices, etc. are located in Vernon, just 10 minutes from Coldstream Meadows.

Please consult the listing agent for more details.

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PONDEROSA APARTMENTS AT COLDSTREAM MEADOWS 5 4

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PONDEROSA APARTMENTS AT COLDSTREAM MEADOWS 13

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PONDEROSA APARTMENTS AT COLDSTREAM MEADOWS 17 16 16

DEVELOPMENT

OVERVIEW

EXISTING

NEW DEVELOPMENT

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The Views

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16

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1. Ponderosa Apartments 2. Heritage Chapel 3. Future R.V. Parking 4. The Bungalows

5. 3 x 4 Plex (in development) 6. Resident Gardens 7. The Terraces 8. Central Park 9. The Views 10. Municipal Park 11. The Cottages 12. Meadows Parkway 13. Aberden Manors

14. Coldstream Community of Care 15. Walking Paths

16. Future Golf Putting Course

75 EXISTING UNITS + 12 BUNGALOWS

Coldstream Meadows is partially developed with 75 existing units. Our plan is to create several neighbourhoods within the overall community.

The Cottages

4 duplexes (8 units) of independent living. Residents are provided a full range of hospitality services with meals and housekeeping optional. Ownership options are owner/ occupants and investors.

The Views

33 units of independent living and 5 commercial service areas that are owned and operated by Coldstream Meadows. All hospitality services, meals and housekeeping are based out of The Views. Ownership options are owner/occupants and investors.

The Terraces

30 units of independent living. Residents are provided a full range of hospitality services with meals and housekeeping optional. These units are rental only and investor owned.

The Bungalows

16 units of independent living (4 units existing, 12 units to be developed in 2021). Residents are provided a full range of hospitality services with meals and housekeeping optional. Ownership options are owner/occupants and investors.

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NEW DEVELOPMENTS AND INVESTMENT OPPORTUNTIES

All sites are fully serviced with all services provided at the property line. Coldstream Meadows is offering to fully develop these sites on a forward sale where CM will develop the building by agreement.

PONDEROSA APARTMENTS

This site is 2.5 to 3 acres (actual site plan to be determined based on building design) and is planned for 120 independent living apartments. Residents will have access to services and amenities at one of the other neighbourhoods on fee for service basis, but base rent will not include any services or amenities.

THE SITE

Location 9104 Mackie Drive, Coldstream, BC Project Value $44,396,000.00 or $367,000.00 per key Anticipated Completion 2023

Development Period 18 months

Land Size 111,513.6 SF (2.56 acres) Dimensions Approx. 435’ (frontage) x 355’ Current Zoning Up to 3 storeys

Existing Use Zoned multi-family residential seniors housing

MASTER DEVELOPMENT PLAN

ABERDEEN MANOR

160 units of supportive living where all hospitality services, meals, housekeeping, and other amenities are included in the rent.

THE PROJECT

Units 160

Turnkey Project Value $48,000,000.00 or $300,000.00 per key

COLDSTREAM COMMUNITY OF CARE

This site will be sold to a developer/operator of care facilities. This care facility will be 100 units and operate under contract to Interior Health.

THE PROJECT

Units 100

Turnkey Project Value $28,000,000.00 or $300,00.00 per key

PONDEROSA

APARTMENTS

ABERDEEN

MANOR

COLDSTREAM

COMMUNITY

OF CARE

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FINANCIAL

ANALYSIS

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PRO-FORMA

BUILDING SUMMARY PHASE 1 PHASE 2 TOTAL

Rentable Square Footage 51,816 51,816 103,632

Building Area 61,506 61,506 123,012

Number of Units 60 60 120

Efficiency Rate 84% 84% 84%

Rentable Square Footage per Unit 864 864 864

Common Area per Unit 162 162 162

Total Area per Unit (SF) 1,025 1,025 1,025

REVENUE PHASE 1 PHASE 2 TOTAL

Estimated Monthly Lease Rate per Square Foot 2.50 2.50 2.50

Annualized Revenue 1,554,480 1,554,480 3,108,960

Less: Vacancy Allowance at 2.00% 31,090 31,090 62,179

Effective Gross Income 1,523,390 1,523,390 3,046,781

Less: Operating Expenses at 23.50% 358,000 358,000 716,000

Stabilized Net Income 1,165,390 1,165,390 2,330,781

Capitalization Rate of 5.25% 5.25% 5.25% 5.25%

Market Value Under Income Approach 22,197,912 22,197,912 44,395,825

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MARKET

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COLDSTREAM, BRITISH COLUMBIA

MARKET OVERVIEW

DEMOGRAPHICS

Coldstream – defined as ‘Living At Its Best’ – is destined to be one of the most sought-after retirement destinations in BC and in Canada. Coldstream’s location is second to none with its abundance of parks, Kalamalka Lake and Provincial Park, orchards, the north terminus of the Okanagan Rail Trail, modern urban communities and ideal year-round environment.

Coldstream Meadows is located in the District of Coldstream which is a suburban community of Vernon. Coldstream is part of Greater Vernon which is comprised of Coldstream, Vernon and Regional District of North Okanagan Electoral Areas B and C.

The District of Coldstream maintains responsibility for smaller parks and other municipal functions including planning, fire protection, roads, sanitary sewer, storm water, etc.

Coldstream is unique when compared to the other Greater Vernon participants. For example: house prices in Coldstream average 25% to 35% higher than in the other areas; family incomes in Coldstream are much higher than Vernon; and Coldstream is one of the safest communities in all of BC. Based on these facts alone Coldstream is an ideal location to create a destination retirement community. When population statistics are also taken into account it makes the Coldstream location even more appealing. Population projections for Coldstream and the RDNO, for the senior population, are a significant factor in determining the overall plans for Coldstream Meadows. Over the next 20 years, in the RDNO, the 75 to 79 age group will grow by 50%, the 80 to 84 age group will grow by 110%, the 85 to 89 age group will grow by 125%, and the 90+ age group will nearly triple. The opportunities in seniors housing today, in Coldstream, are unprecedented.

POPULATION 1 KM 3 KM 5 KM

2015 Estimated 455 5,488 13,645

2020 Estimated 531 5,729 14,275

2025 Projected 520 5,876 14,938

HOUSEHOLDS 1 KM 3 KM 5 KM

2015 Households by Size of Household 122 1,896 5,324

2020 Households 138 1,958 5,509

2025 Households by Size of Household 135 2,007 5,762 Average (Mean) Household Size 2.75 2.83 2.53

Growth 2015 – 2020 13.11% 3.27% 3.47%

Households by Education Level

No Certificate, Diploma or Degree 10.1% 11.1% 11.9% High School Certificate or Equivalent 20.9% 27.9% 28.9% Apprenticeship/Trades Certificate/Diploma 12.4% 10.6% 10.8% College, CEGEP or Other Non-University

Certificate/Diploma 20.0% 23.0% 22.2%

University Certificate/Diploma Below

Bachelor 2.8% 2.2% 2.5%

University Certificate, Diploma/Degree at

Bachelor Level or Above 33.8% 25.3% 23.7%

HOUSING UNITS 1 KM 3 KM 5 KM

2020 Occupied Private Dwellings

Owner Occupied 88.7% 89.4% 86.9% Renter Occupied 11.3% 10.6% 13.1% HOUSEHOLDS BY INCOME 1 KM 3 KM 5 KM 2020 Income Under $20,000 0.8% 0.8% 1.3% $20,000 – $39,999 10.4% 6.9% 10.5% $40,000 – $59,999 8.3% 9.0% 11.5% $60,000 – $79,999 11.7% 9.9% 11.2% $80,000 – $99,999 13.1% 9.5% 10.7% $100,000 and over 55.7% 63.9% 54.8% Average Household Income $125,609 $146,868 $129,292 Median Household Income $111,077 $131,007 $109,972 Per Capita Income $49,004 $55,484 $52,507

POPULATION PROFILE 1 KM 3 KM 5 KM 2020 Total Population 531 5,729 14,275 0 to 4 Years 3.4% 4.0% 3.7% 5 to 9 Years 3.9% 5.0% 4.6% 10 to 14 Years 4.7% 6.5% 5.6% 15 to 19 Years 5.2% 7.2% 6.2% 20 to 24 Years 5.2% 6.3% 5.6% 25 to 29 Years 3.7% 4.0% 4.2% 30 to 34 Years 3.4% 4.0% 4.5% 35 to 39 Years 3.9% 5.1% 5.0% 40 to 44 Years 4.1% 5.9% 5.5% 45 to 49 Years 5.9% 7.2% 6.5% 50 to 54 Years 7.6% 7.7% 7.3% 55 to 59 Years 7.8% 8.4% 8.3% 60 to 64 Years 6.7% 8.4% 8.5% 65 to 69 Years 5.4% 6.7% 7.4% 70 to 74 Years 5.3% 5.1% 6.3% 75 to 79 Years 5.3% 3.5% 4.6% 80 to 84 Years 5.6% 2.2% 3.1% 85+ Years 5.44% 2.33% 2.92% Median Age 54.4 46.3 48.9 Male Population 53% 50% 51% Female Population 47% 50% 49%

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Disclaimer: Although the information contained within is from sources believed to be reliable, no warranty or representation is made as to its accuracy being subject to errors, omissions, conditions, prior lease, withdrawal or other changes without notice and same should not be relied upon without independent verifi cation. © 2021 Lee & Associates Commercial Real Estate (BC) Ltd. All Rights Reserved.