CAPITAL MARKETS INVESTMENT PROPERTIES

Exalta F A R M S9256 OLD PALA ROAD, PALA, CA 92059

OFFERING MEMORANDUM

AFFILIATED BUSINESS DISCLOSURE

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).

CONFIDENTIALITY AGREEMENT

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.

DISCLAIMER

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.

2

3

TABLE OFCONTENTS

Executive Summary

Property Overview

Property Features & Topography

06 1408 1812

Historic & Current Use

Improvements

EXECUTIVESUMMARY

6

EXECUTIVE SUMMARY

CBRE is proud to present Exalta Farms, a one-of-a-kind 414-acre trophy ranch located in the heart of southern California.

With a unique history and a lifetime worth of stories, which story would you like to tell?

Exalta F A R M S

7

PROPERTYOVERVIEW

8

PROPERTY OVERVIEW

Located in North San Diego County near the famous Pala Casino, this is a once in a lifetime opportunity to acquire an entirely unique, 414-acre estate and agricultural property nestled in a gentle canyon with excellent access and frontage along Highway 76, only two miles from Interstate 15. In a bucolic, almost magical setting, the 7,019 square foot custom built estate home with various outbuildings is an ideal opportunity for a personal residence, corporate retreat, and equestrian activities with ancillary agricultural operations. With well-landscaped and fully improved grounds, spacious lawns, a 2.5-acre reservoir, well water, privacy and acreage, few properties this close to downtown San Diego and Los Angeles provide this level of amenities and opportunity.

Essentially turn-key, the new owner can immediately enjoy the privacy and extensive existing amenities, just as they are, or develop the agricultural or equestrian potential. With your own trails and gentle topography, the property becomes your private retreat to enjoy recreational activities, horseback riding, and an escape from the suburban lifestyle, yet still very "close-in." Rarely do properties of this caliber come to market in San Diego County.

9

The 414 acres creates a private paradise in one of the most sought-after regions in the world due to its gentle Mediterranean climate coupled with great accessibility to downtown San Diego and virtually all of Southern California. The availability of well water, almost unheard of in the area, along with municipal water maximizes its potential for agricultural, equestrian, and estate residential uses.

Only two miles to Interstate 15, the major North/South Freeway in inland San Diego County, you are only a 20-minute drive to the Temecula wine country and a 40-minute drive to San Diego International Airport (Lindberg Field). Traveling only 30 minutes to the west along Highway 76, you will arrive at the famous beaches in Carlsbad and Oceanside Harbor with all of the dining, golf, tennis and abundant recreational activities found there. Sea World, LEGOLAND, the world-famous San Diego Zoo and San Diego Zoo Safari Park are all within a 30-45 minute drive.

10

11

PROPERTY FEATURES & TOPOGRAPHY

12

PROPERTY FEATURES & TOPOGRAPHY

The property and homesite along with a number of gentle knolls provide boundless views of nearby Palomar Mountain and the surrounding countryside. With its own private reservoir, gentle hillsides, and a commercial avocado grove, a drive, ride or walk through the property is serene and inspiring. Surrounding hills still have natural eucalyptus, oaks and riparian vegetation along a gentle creek.

Also unique to North County is the nearly level to gently rolling topography that allows for all types of equestrian, ranch, and agricultural uses. With barns, corrals, storage, and out-buildings, all rural activities are easily undertaken and supported including the potential for horticulture.

The commercial avocado and persimmon groves demonstrate the agricultural capability of the land for more intensive agricultural uses including wine grapes, flowers, citrus, row crops, and pastures.

All of this, along with the estate quality home with an attention to detail that rivals even Rancho Santa Fe estates, will delight the most discriminating buyer.

13

HISTORIC &CURRENT USE

14

HISTORIC & CURRENT USE

The property was acquired by the current owner in the early 2000's. Subsequently, it was developed as a nearly self-sustaining high-end estate property with support agricultural operations. Current production includes persimmons, avocados, past row-crop activities, and open pasture lands. The rolling hills have been maintained as pasture lands but are suitable for a wide range of crop production, or as pristine pastures for cattle or equestrian uses. The possibilities are endless but suitable crops include olives, citrus, row crops, floriculture and nursery stock, industrial hemp, berries, and wine grapes.

15

WATER

There are a total of 10 pre-1914 wells with accompanying water rights that are incredibly rare in California. At present, 3 wells are in production and supply water to the avocados, persimmons, and the other ranch operations. Additionally, there are domestic water meters that provide a second water source for abundant and plentiful irrigation water. There is a water storage tank that gravity feeds water to the southern portion of the ranch and an approximately 2.5 surface-acre reservoir used for water storage. Though not currently stocked, it could also be used as a recreational fishing lake.

16

ACCESS

Located along Highway 76, the property lies just two miles east of I-15. Highway 76 provides direct access to Pauma Valley and Palomar Mountain to the east and continues directly west to the Pacific Coast. The immediate area is surrounded by agricultural uses, multiple casinos, and a large new residential development known as Horse Creek Ridge.

Interior access is provided by paved interior driveways and graded interior dirt roads. There is a gate-controlled entry along Highway 76 providing access to the main estate compound and ancillary buildings. Virtually all areas of the property are accessible by SUV or Quads. Multiple legal entry points along Rice Canyon Road and Highway 76 provide outstanding ingress and egress for the estate home and for ranching operations and contractors.

Exalta F A R M S

17

IMPROVEMENTS

18

IMPROVEMENTS

The incredible single-story main estate home is comprised of 7,019 square feet of custom built serenity. The Master Bedroom boasts his and her bathrooms with 3 additional bedrooms, an office, butler's room, chef's kitchen, solarium, library, and exercise room. The 952 square foot guest cottage is quaint and has the same high-end custom design, perfect for hosting visitors. Two separate garages can accommodate 5 cars with a workshop in the detached 3-car garage. Outside the home is an infinity pool with a waterfall, large patio entertaining areas and a pool house for entertaining.

19

With significant demand for homes in San Diego County, development has encroached on most of the once pristine lands such as Exalta Farms. Not only are there very few trophy ranches left, but they are rarely available for purchase and even more rare to find in this condition.

Other structural improvements include:

• ±10,000 SF commodity barn

• ±7,500 SF cattle or horse barn with a restroom.

• ±4,500 SF maintenance shop/equipment storage facility

• ±6,500 SF equipment storage building with loading dock

All machinery and equipment will be included in the sale, offering a turn-key operation.

20

OCEANSIDE, CAOCEANSIDE, CA

Exalta F A R M S

22

Exalta F A R M S9256 OLD PALA ROAD, PALA, CA 92059

Price: Contact Broker for pricing guidance

Due Diligence: Recommended to be no longer than 60 days

Terms: Cash to Seller

© 2021 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness.

You should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. CBRE

and the CBRE logo are service marks of CBRE, Inc. All other marks displayed on this document are the property of their respective owners, and the use of such

logos does not imply any affiliation with or endorsement of CBRE. Photos herein are the property of their respective owners. Use of these images without the

express written consent of the owner is prohibited. PMStudio_June2021

D. MATT MARSCHALLSenior Vice President+1 858 404 7202 cel: +1 619 540 5555matt.marschall@cbre.comLic. 01035488

CONTACTSDYLAN MARSCHALLSenior Associate+1 858 404 7203 cel: +1 760 420 1632dylan.marschall@cbre.comLic. 02045289

NICOLETTE CANZONERIFinancial Analyst+1 858 404 7206nicolette.canzoneri@cbre.com