Capital Markets | Investment Properties

OFFERING MEMORANDUM

The Herrington Ranch334.66 Gross Acres

Vineyard and Estate Development Land

AFFILIATED BUSINESS DISCLOSURE AND CONFIDENTIALITY AGREEMENT

CBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgement of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).

Your receipt of this Memorandum constitutes your acknowledgement that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest

confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc.

This Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an

opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.

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 at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner.

© 2017 CBRE, Inc. All Rights Reserved

TABLE OF CONTENTS

0406081014

EXECUTIVE SUMMARY

PROPERTY DETAILS

VINEYARD POTENTIAL

PROPERTY LOCATION

PROPOSED DEVELOPMENT

EXECUTIVE SUMMARY

T H E H E R R I N G T O N R A N C H

Located at the southern end of Lake County, less than 1 mile from the recreational activities of Hidden Valley Lake lies the Herrington Ranch. Nestled in the beautiful rolling hills of Coyote Valley, the property consists of 334.66 gross acres of estate and vineyard development land. Approximately 187 acres have been identified as having slopes less than 30% with portions of this acreage being suitable for vineyard development. This property offers the unique opportu-nity to develop wine grape vineyards in an area where wines have been winning awards and receiving critical acclaim. Known as “The Mountains of the North Coast,” Lake County is an ex-citing high-elevation wine region located in Northern California’s prestigious North Coast ap-pellation.

The Herrington Ranch is located near Middletown, east of Hidden Valley Lake, in Lake County. Just 25 minutes north of Napa County, with Sonoma and Mendocino counties to the west. The property is uniquely situated just 1 hour north of the city of Napa and just 2 hours from San Francisco, offering the exclusivity of Hidden Valley yet proximity to the Urban areas of San Fran-cisco and the Silicon Valley. The local area offers many opportunities for fishing, swimming, camping, hiking, horseback rid-ing and touring the many vineyards and wineries. The property is within the North Coast AVA and sandwiched between the Napa Valley, North Sonoma, and Clear Lake AVA’s. Surrounding land uses include single-family residential, vineyard and estate-homes, 18-hole PGA rated Hid-den Valley Lake Golf Course, and commercial and retail uses. The final phase of the neighboring RimRock Ranch Vineyard Estates offering 12-29 acre home sites starting at $399,000.

T H E H E R R I N G T O N R A N C H

PROPERTY DETAILS

T H E H E R R I N G T O N R A N C H

013-060-40155.59 acres

013-014-11107.61 acres

013-014-0371.46 acres

Locat ion16750 Herrington Road, Lake County, CA 95467

Size334.66 Gross Acres

aPn’S013-060-40 155.59 Acres013-014-11 107.61 Acres013-014-03 71.46 Acres

zoningRR (Rural Residential) - 206.44 AcresRL (Rural Lands) - 128.22 Acres

• Potential for 29 parcels – lot splitting as per general plan and zoning designations or cluster development

• Great soils with potential for Vineyard Development

imProvementS

• 1,344 Sq. Ft. Barn and apartment with partial 2nd floor.• 320 foot depth well with pump and pressure tank,

electrical connection and water piping. • 1,006 feet of overhead electrical service.• Septic system (approved for 3 bedrooms).• 19,598 feet of perimeter fencing.

=

VINEYARD POTENTIAL

T H E H E R R I N G T O N R A N C H

In the heart of Northern California’s Coastal Range, Lake County’s 9,454 acres of vineyard grace the valleys, terraces and ridges of a remarkable landscape. With Clear Lake at its center, the viticultural region spans a range of terrain shaped by volcanic and tectonic forces. This combination of altitude, climate, and soils plus the careful selection of wine grape varieties permits Lake County growers to achieve a nearly perfect union of site and variety.

The harmony of site and varietal selection can result in a wine that expresses its sense of place, which French winemakers refer to as terroir.

1) HigH ElEvat ion The majority of vineyards in the region are planted above 1,300 feet, and the upper elevations experience higher ultraviolet light levels, promoting phenolic intensity with balance.

2) HigH Dry SHort anD ColD

Higher and drier mountains have less pest and mildew pressure. Cold win-ters reduce pest populations, and a shorter season requires fewer pesti-cide and other applications. As a result, Lake County is among the areas of lowest pesticide use of any wine region in California.

3) CompEll ing tErroir The appellation boasts the purest air quality in California (3rd cleanest in the nation), some of the youngest soils in the North Coast, and one of the oldest lakes in North America.

4) HigH Quality

Lake County produces high-quality, varietally true grapes with prices tar-geted for $10 to $40 programs.

5) profESS ional growErS

The region boasts a small, experienced cadre of growers who have plant-ed the right varietals in the right locations at the industry standard. Seven-ty percent of Lake County growers have participated in the Code of Sus-tainable Wine grape Practices Self-Assessment.

Lake County Vineyard and Wine Characteristics

BLOCK 1122 ACRES

BLOCK 331 ACRES

BLOCK 512 ACRES

BLOCK 47 ACRES

BLOCK 214 ACRES

T H E H E R R I N G T O N R A N C H

PROPERTY LOCATION

T H E H E R R I N G T O N R A N C H

Guenoc Valley

Clear Lake

Northern Sonoma

Knights Valley

Napa Valley

North Coast

Herrington Ranch

Wine Regions

T H E H E R R I N G T O N R A N C H

NORTH COAST

DESIGNATIONAmerican Viticultural Area

STATECalifornia

COUNTIESLake, Marin, Mendocino, Napa, Solano, Sonoma

GRAPE PRODUCTION

VINEYARDS1993

TOTAL AREA3,251,042 acres

PLANTED AREA68,067 acres

DOMINANT GRAPE VARIETYCabernet Sauvignon

TERRIOR PROFILE

ELEVATION

GROWING SEASON CLIMATE

HIGH AVE LOW

2,825 ft. 564 ft. 6 ft.

HI °F LOW °F RAIN IN.

79.6 49.2 6.2.

CLEAR LAKE GUENOC VALLEY

DESIGNATIONAmerican Viticultural Area

STATECalifornia

COUNTIESLake

GRAPE PRODUCTION

VINEYARDS38

TOTAL AREA217,467 acres

PLANTED AREA3,153 acres

DOMINANT GRAPE VARIETYSauvignon Blanc (Fumé blanc)

TERRIOR PROFILE

ELEVATION

DESIGNATIONAmerican Viticultural Area

STATECalifornia

COUNTIESLake

GRAPE PRODUCTION

VINEYARDS2

TOTAL AREA4,757 acres

PLANTED AREA195 acres

DOMINANT GRAPE VARIETYxxx

TERRIOR PROFILE

ELEVATION

GROWING SEASON CLIMATE

HIGH AVE LOW

2,825 ft. 1,876 ft. 1,333 ft.

HIGH AVE LOW

1,514 ft. 1,303 ft. 1,093 ft.

HI °F LOW °F RAIN IN.

84.4 50.4 6.6

PROPOSED DEVELOPMENT

T H E H E R R I N G T O N R A N C H

Herrington Ranch

KEY

TREES

HOUSINGCLUSTERS

MEADOW

VINEYARD

T H E H E R R I N G T O N R A N C H

Capital Markets | Investment Properties

MATT MARSCHALLSenior Vice President+1 858 404 7202matt.marschall@cbre.comLic. 01035488

The Herrington Ranch