GOLF & RESORT PROPERTIES MARINA PROPERTIES GOLF & RESORT GROUP PREMIER LEISURE PROPERTIES CARIBBEAN PROPERTIES SKI & RESORT PROPERTIES

GOLF & RESORT PROPERTIES MARINA PROPERTIES GOLF & RESORT GROUP PREMIER LEISURE PROPERTIES CARIBBEAN PROPERTIES SKI & RESORT PROPERTIES

2016 was a memorable year, highlighted by one of the craziest elections anyone can ever remember. Love him or hate him, Donald Trump has injected enthusiasm into the economy and the stock market has reflected this upward swing in consumer confidence. Many believe his presidency will add two or three more good years to a real estate cycle that was in the latter innings, however execution of policy is paramount for the economy to keep growing. 3.5 3.0 2.5 2.0 1.5 1.0 0.5 GOLF COURSE SALES 2003-2016 Gross Revenue Multiples We see 2017 being a big year for the ski business. Consolidation will be the hallmark, as the CNL resort portfolio closed in April and a KSL/Aspen Skiing Company partnership will be buying Intrawest and Mammoth Mountain in California. This will have a positive and profound impact since history has shown an increase in the value of real estate around ski properties that trade. Record snowfall in the West hasn t hurt either! We are also starting to see money come back into the Caribbean for well-priced properties, as investors are seeking higher yields and we think a softening of banking regulations will help. We are excited about our current offerings, which are depicted on the last couple of pages of this report and bullish on 2017. As always, please call if we can be of assistance. Cheers! Jeff Woolson Managing Director CBRE Golf & Resort Properties 0.0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: CBRE Research TROPHY GOLF PROPERTIES HIT THE MARKET Many premium golf clubs, both public and private changed hands in 2016, including two of Arizona s best, Troon North in Scottsdale and The Gallery near Tucson. Troon North was the largest standalone golf course transaction in the past decade. Fairbanks Ranch Country Club in San Diego was sold by club members to Bay Clubs, a newcomer to golf course ownership who combined operations at Fairbanks with their nearby health club. GOLF PORTFOLIOS After building their golf portfolio in the U.S., Pacific Links chose to dispose of the majority of their portfolio in 2016. After selling Kapolei on Oahu and Dove Canyon in Southern California in late 2015, other assets followed last year. Dragon Ridge Country Club and Southern Highlands in the Las Vegas area were sold back to the original developers, while PL s SouthShore Golf Club (also near Las Vegas) is currently being marketed for sale. Rumors surfaced in late 2016 that ClubCorp could be for sale. ClubCorp publicly traded stock (TEE) ranged from $13.5 to $17.5 over the past 12 months with a market cap of over $1 billion dollars. Their portfolio consists of over 200 public and private clubs and the impact of a potential sale has the attention of the golf community.

PRIVATE EQUITY CLUBS Many companies are targeting struggling private equity clubs as we predicted in our last Year in Review but none were more active than ClubCorp and Concert Golf. Buying private equity clubs brings new challenges to the art of the deal. Emotions run high as the Board of Directors is charged with the fiduciary responsibility of selling the club for the members and pleasing all is impossible. Most equity clubs carry debt and are in dire need of capital improvements and thus, often no money ever reaches the members pockets. ClubCorp successfully closed on a handful of clubs in 2016 including Bernardo Heights and Santa Rosa in California, along with Marsh Creek in Florida. Concert Golf also had a great year targeting private equity clubs, closing on Crestview in Kansas, White Manor in Pennsylvania and Blue Hill in Massachusetts. REPURPOSING Repurposing golf courses still is on the top of every residential developers list but they are becoming harder to come by. Nonetheless, the Doubletree Golf Resort in San Diego and Empire Lakes in Rancho Cucamonga are destined for residential developments. Steve Wynn announced he is redeveloping his highly regarded Wynn Golf Club in Las Vegas into a massive waterpark and a 1,000-room resort and casino. CHINA BECOMES THE LARGEST SOURCE OF ASIAN CAPITAL Asian outbound real estate investment was dominated by Chinese investors in 2016, as buyers from the mainland accounted for nearly half of total investment, $28.2 billion or 47%. Although increased scrutiny of cross-border capital flows by the Chinese government is expected to slow the pace of Chinese outbound real estate investment in 2017, this could prompt Chinese investors to pursue a higher number of smaller deals. The U.S. remained the preferred destination for Asian capital for the second consecutive year, drawing 43% of the overall total. 2016 also saw an increase in the amount of capital deployed to gateway cities and New York surpassed London as the top metropolitan destination for outbound investment. Japanese outbound investment experienced an uptick in 2016, targeted mostly at the U.S. is expected to increase in 2017. CBRE has nine offices in China, eleven in Japan and two in Korea, from which we are actively tracking inbound investments. Please contact Jeff Woolson at jeff.woolson@cbre.com for a copy of the Asia Pacific Major Report. The following pages show 2016 as one of our biggest years for selling trophy golf courses. Some of our deals involved stabilized, cash flowing properties and some were underperforming courses, but the common denominator was quality. They were all high-quality, an attribute buyers are still willing to pay a premium for. GOLF RESORT SKI MARINA DEVELOPABLE LAND

TROON NORTH Scottsdale, Arizona SEPTEMBER 2016 Daily Fee Golf Course (36 Holes)

THE GALLERY Marana, Arizona DECEMBER 2016 Private Country Club (36 Holes)

THE RIVER CLUB Atlanta, Georgia AUGUST 2016 Private Country Club Finished Lots / Spec Home Developable Land

ROYAL LINKS Las Vegas, Nevada NOVEMBER 2016 Daily Fee Golf Course

FAIRBANKS RANCH Rancho Sante Fe, California JULY 2016 Private Country Club (27 Holes)

3 PARCEL 4 PARCEL Mammoth 2 PARCEL BEAR LAKE SIERRA STAR WEST LOTS 2-3-4 Mammoth Lakes, California NOVEMBER 2016 Developable Land

THE WANDERERS CLUB Wellington, Florida JANUARY 2016 Private Country Club

RED LODGE Red Lodge, Montana JANUARY 2016 Ski Resort / Daily Fee Golf Course Developable Land

SAVANNAH BAY Anguilla ST. LUCIE TRAIL Florida AETNA SPRINGS California OBSIDIAN California LOON MOUNTAIN New Hampshire SOUTH OCEAN Bahamas COSTABAJA Mexico DUPONT Delaware PORT LOUIS Grenada

GROUSE MOUNTAIN Canada ANCO LANDS Bahamas 2017 STEAMBOAT SPRINGS Colorado PREVIEW For more information: Follow us on @cbregolfresort or visit: www.cbre.com/golfandresort GRAND BAHAMA BAY Bahamas THE EAGLE California

GOLF & RESORT GROUP 5780 Fleet Street, Suite 100 Carlsbad, CA 92008 JEFF WOOLSON Managing Director +1 760 438 8530 jeff.woolson@cbre.com MORGAN ABBOTT Senior Underwriter +1 760 438 8536 morgan.abbott@cbre.com SAMANTHA MARTIN Transaction Manager +1 760 438 8531 samantha.martin@cbre.com DANIELLE JUAREZ Marketing Coordinator +1 760 438 8591 danielle.juarez@cbre.com Follow us on @cbregolfresort www.cbre.com/golfandresort GOLF & RESORT GROUP 5780 Fleet Street, Suite 100 Carlsbad, CA 92008 +1 760 438 8500 2017 CBRE Group, Inc. We obtained this information from sources we believe to be reliable, however we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction. This offering memorandum is subject to the terms outlined in the confidentiality agreement. Reproduction of this document and its contents is strictly prohibited without the expressed written consent of CBRE.