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MOSAIC

The Mosaic property, comprised of approximately 18.7 acres of a larger 80 acre subdivision, is in a prominent location on the Southern side of Menifee, in Riverside County. It is located in one of the fastest growing employment corridors in the country, between Ontario (30 minutes) to the north and Temecula (15 minutes) to the South. The property sits in a highly visible location off the Highway 215 corridor, greatly increasing sales traffic, yet distant enough to avoid sound impacts from the freeway. McKinley acquired the property under distressed circumstances from Key Bank in April , 2008. The acquisition price included prepaid fees and graded pads making the acquisition cost below the lot’s replacement value.

Investment Type Land holding Residential Product 64 Single-family lots (blue top construction) Location Menifee, CA (Riverside County)

LOS CARNEROS

Los Carneros is a 45 acres site located in Goleta, Santa Barbara County, a high-profile location just off the Los Carneros Road off-ramp of Highway 101. This project had previously been entitled by a real estate opportunity fund for a high-density residential project.

McKinley and its joint venture partner, Comstock Homes, acquired the property for $9.4 million; it had originally been listed for $30 million and the previous fund had invested $25 million in the project.

The partnership reduced the project's density and sold the property for $42mm.

Investment Type Land re-entitlement and revise product mix Residential Product 56 Single-family lots, 177 Townhomes, 144 Apartment units, and 39 Condos Location Goleta, CA (Santa Barbara County) Investor Comstock Homes

THE VINEYARD

In March, 2010, McKinley entered into a joint venture with Argosy Capital (the Investment Team) to acquire a 59.8 acre site in Ontario, Riverside County, at a distressed price from California Bank & Trust.

The property is entitled with a Tentative Map, a Development Agreement, and improvement plans read for Final Map submittal. The entitlements provide for 229 residential lots, and a 10.2-acre school site. If the School District elects not to purchase the 10.2-acre site, the site could be rezoned for an additional 47 residential lots.

McKinley has been tracking this property as it went through the foreclosure process, bank failure, and FDIC asset transfer to the current bank. Distinguished Homes, the original project developer, became the asset manager/operator of the project, and a co-investor.

The project business plan envisions two disposition strategies: sell the project without improving the 59.8 acre site, or install the infrastructure improvements on a phased basis then sell finished lots to a single or multiple home builders.

Investment Type Land entitlement completion Residential Product 229 Single-family detached lots and 10 acres being sold to school district Location Ontario, CA (Riverside County) Investor Argosy Capital and Distinguished Homes

ALAMO CREEK

In early July, 2010, McKinley entered into a partnership agreement with Alamo Glenn Partners (land owner/developer), whereby McKinley has agreed to fund certain land carry costs (mainly debt service) over a limited number of years. The property consists of 43.3 acres, and is located in southeast Vacaville, within the Southtown master planned community. Roughly three quarters of the site is entitled for 141 single-family lots which was sold in 2014, while the balance of the property is approved for 200 apartment units. The business plan is to re-entitle the apartment site for 68 single family units, then sell the subdivisions.

Investment Type Developer joint-venture Residential Product 141 Single-family lots (sold); 68 future residential units Location Vacaville, CA (Solano County) Investor Tony Keslinke

Fairfield

McKinley Partners purchased a controlling interest in a 385 acre site approved for a master-planned residential community in Fairfield, California. The Canon Station community will have a mix of housing, retail, two community centers, parks, trails and a lake when completed. The property is located near the I-80 corridor midway between Sacramento and the Bay Area. It is within the Train Station Specific Plan (TSSP), which includes a master-planned residential community of up to 6,000 residences that will feature a new train station, town plaza, shops, industrial area, and a 50-acre community park. Canon Station LLC, consisting of managing partner McKinley Partners and limited partners (including the Yarbrough family), will be developing the property with roadways and infrastructure improvements in preparation for sale to home builders.

Investment Type Land entitlement completion and horizontal infrastructure development Residential Product 2,300 single-family and multifamily housing units, hiking and bike trails encircling the community, exceptional school district. Location Fairfield, CA (Solano County) Investor Canon Station LLC

JORDAN RANCH

Jordan Ranch is a 187.4 acre site located in Dublin, Contra Costa County, which McKinley acquired at a 70% discount to peak pricing in partnership with BlackRock. McKinley and its operating partner, Mission Valley Development, secured approval of 899 residential units (619 single-family detached homes and 280 townhomes). The partnership processed, financed and developed the infrastructure for the project. The partnership began selling finished lots to builders in 2012. The final sale of lots will be in December, 2016.

Investment Type Land entitlement completion and horizontal infrastructure development Residential Product 619 Single-family lots, 280 Townhomes Location Dublin, CA (Alameda County) Investor BlackRock and Mission Valley Property

COTATI VILLAGE WALK 46

McKinley invested $5.175M of preferred equity to acquire 46 finished lots ready to build. The project is a mix of 20 attached townhome units and 26 detached homes surrounding an interior park. This project will appeal to a broad market due to pricing, location, and range of product offered.

The property is located less than a mile from the 101 freeway in downtown Cotati. The project fills a niche for affordable homes in a convenient location near transportation (new train station to the East), schools (Sonoma State University), and retail development in southern Sonoma County.

Investment Type Preferred Equity Residential Product 20 townhomes and 26 single-family detached Location Cotati, CA

DOWNEY 39

This infill project, currently a 1.58 acre parking lot within the City of Downey, was brought to the sponsor by the City. The City has reviewed the proposed site plan and supports a 39 townhome project. McKinley committed $4.8M in preferred equity to fund the land acquisition and horizontal and vertical construction. In 2015, the sponsor completed and sold a two similar 17-townhome projects in Downey and Pico Rivera near subject property location.

Investment Type Preferred Equity Residential Product 39 townhomes Location Downey, CA

SACRAMENTO 32

This $15M project, located in Midtown Sacramento, is being sponsored by a highly experienced Sacramento developer. McKinley committed $2.66M in preferred equity and the sponsor secured a $12.6M acquisition and construction loan.

The project is located in a rapidly gentrifying and appreciating market in Midtown. It is located close to light-rail transit line that provides easy access to downtown and entertainment amenities, such as Raley Field and the future Sacramento Kings Stadium.

Investment Type Preferred Equity Residential Product 32 townhomes Location Sacramento, CA

SONOMA CUSTOM HOMES

McKinley provided a loan, secured by a 1st TD, in the amount of approximately $2.5MM to fund the acquisition and construction of two custom homes near downtown Sonoma. The two proposed homes will be approximately 2,800 square feet and will include an attached garage, pool and 700 square foot pool house. The project seeks to offer a high-quality custom home, similar to those that are selling in the coveted “East side” of Sonoma, but closer to the downtown area and at a more affordable price. The architectural style of the proposed homes is “country-modern”, which is in relatively short supply and commands higher prices in the surrounding Sonoma area. The project aims to be attractive to buyers because it offers the same quality of home as can be found in the more expensive “east side”, newly constructed, on half-acre lots, but at a lower price per square foot and closer to downtown location.

Investment Type 1st Trust Deed loan Residential Product 2 single-family custom homes Location Sonoma, CA

OCEANSIDE CONDOS

McKinley invested $1.4M, secured by a 1st trust deed loan, in this 3-unit condo project in coastal Oceanside. Two recently completed 16-unit townhome projects on the same street sold out quickly. This project will offer larger single-level condos with some ocean views on the top unit and rooftop decks. Coastal Oceanside offers proximity to the beach at a favorable price to other areas in San Diego County.

Investment Type 1st Trust Deed loan Residential Product 3 condos Location Oceanside, CA

WALNUT CREEK 11

This infill project, located in Walnut Creek (Bay Area), is being sponsored by The ADDRESS Company. McKinley committed $2.6M in preferred equity to fund the land acquisition and horizontal and vertical construction. This project is adjacent to Downtown Walnut Creek and a short walk to Broadway Plaza, Downtown shops and restaurants.

Investment Type Preferred Equity Residential Product 11 Townhomes Location Walnut Creek, CA

LONE OAK RANCH 24

Sponsor, California West Communities, will construct 24 detached single family homes in a new subdivision in the supply-constrained San Diego County city of Vista, CA. Home sizes will be between 2,800 - 3,400 square feet and each lot will be approximately one quarter-acre. McKinley's Development Capital Fund committed $2.9MM in preferred equity to complete the horizontal and vertical improvements.

Investment Type Preferred equity Residential Product Single-family detached Location Vista, CA Investor California West Communities

CARLSBAD 12

Located less than one mile from the coast, this new 12-home subdivision located in coastal Carlsbad California will consist of single-family detached homes on approximately 12,000 square-foot lots. California West Communities (sponsor) will complete the project with a $3.3MM preferred equity investment from McKinley's Development Capital Fund.

Investment Type Preferred equity Residential Product Single family detached Location Carlsbad, CA

PETALUMA 199

Petaluma 199, named Brody Ranch, will consist of both 138 condominium stacked flats and 61 detached single family homes. The development will feature affordable homes in the highly supply constrained North Bay Area market and will be located adjacent to the future SMART rail station.

Investment Type Preferred equity Residential Product Stacked flats & single-family detached Location Petaluma, CA