Located in The Opportunity Zone - LoopNet...Corporate Income Tax 4.9% 8.84% State Personal Inc Tax 2.59 - 4.54% 9.55 - 13.30% State Sales Tax 5.6% 7.25% Gasoline Tax $0.19 / Gallon

TONY AMATO, CCIMAZ Broker of RecordD [email protected] #: BR550631000 (AZ) & CO565071000 (AZ)

RICHARD OROSELVice President - InvestmentsD 702.637.7289 [email protected] #: S.0183602

The information contained herein was obtained from sources deemed reliable; however we make no guarantees or representations as to the accuracy thereof. The presentation of this property is submitted subject to errors, changes of price or conditions prior to sale or lease, or withdrawal of notice.

NWC QUARTZITE & APACHE & SWC DAWSON & SACRAMENTOGolden Valley, AZ 86440

AERIAL PHOTOGRAPH

TABLE OF CONTENTS LAS190114

© 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 2

COMPARABLE KEY

Partnership. Performance.

AGRICULTURAL / RESIDENTIAL LAND FOR SALE

3 Parcels totaling ±641.87Acres on SWC of

Dawson & Sacramento

±824.38 ACRES :: $3,000,000 :: ALL OR PART

2 Parcels totaling ±182.51Acres on Quartzite

& Apache Rd

Located in The Opportunity Zone


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AMATO COMMERCIAL GROUP10845 Griffith Peak Drive, Suite 100Las Vegas, NV 89135O 702.472.7979 F 702.475.7545

TONY AMATO, CCIMAZ Broker of Record

D [email protected]

License #: BR550631000 (AZ) & CO565071000 (AZ)

RICHARD OROSELVice President - Investments

D 702.637.7289 [email protected]

License #: S.0183602

OFFERING SUMMARYNWC of West Quartzite Dr. & APN: 215-10-024A ±60.80 Acres

South Apache Road APN: 215-10-029A ±121.71 Acres

SWC of West Dawson Drive & APN: 209-01-097 ±600.15 Acres

South Sacramento Road APN: 209-01-100 ±20.86 Acres

(entire section) APN: 209-01-101 ±20.86 Acres

Available ±824.38 Acres in Golden Valley, AZ, All or part

Sale Price $3,000,000

Address SWC Apache Road & Dawson Drive

County Mohave

PROPERTY SUMMARYSquare Feet 35,909,994

Typography Generally Level at Street Grade

Zoning A-R (Agricultural / Residential) (potential for commercial/industrial)

Flood Zone Zone X

Seismic Zone Medium Risk

EXECUTIVE SUMMARYWe is pleased to announce the sale of 824.38 Acres comprised of 5 parcels in Golden Valley, AZ off Interstate 40 also referred to as the CanaMex trade corridor.

The parcels are well suited for agriculture, residential, and or industrial uses. Across Apache Rd is “The Hive” that just broke ground on 717 acres the first week of August. It is an off grid solar data center. Says Briggs- “What we are trying to create is what is to become a backbone, renewable and scalable off-grid data storage.”

The 860,000-square-foot Wal-Mart distribution center will be built off Interstate 40 on the Adobe Road. This facility will employ 700. The Griffith Interchange Industrial Park is comprised of 2000 acres of the I-40 at the Griffith Rd. Interchange. The Industrial park sits next to the Wal-Mart distribution center.

Arizona California

Corporate Income Tax 4.9% 8.84%

State Personal Inc Tax 2.59 - 4.54% 9.55 - 13.30%

State Sales Tax 5.6% 7.25%

Gasoline Tax $0.19 / Gallon $0.477 / Gallon

SOURCE: THE TAX FOUNDATION

Arizona vs. CaliforniaBusiness Cost Comparison


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LOCATION MAP

28,712.5 140,232

This map is a user generated static output from the Mohave County Interactive Map Viewer and is for general reference only. Data layers that appear on this map may or may not be accurate, current, or otherwise reliable. THIS MAP IS NOT TO BE USED FOR NAVIGATION, AS A LEGAL DOCUMENT, FOR PROPERTY DESCRIPTIONS, OR DETERMINATION OF LEGAL TITLE, AND SHOULD NEVER BE SUBSTITUTED FOR SURVEY OR DEED INFORMATION. The user agrees to comply with the Limitation of Use and the Assumption of Risk as stated in the full disclaimer at http://gis.mohavecounty.us

Interactive Map Viewer

© 2017 Mohave County Information Technology

gis.mohavecounty.us

11,686.00 23,371.9

1:

Legend

140,232

Feet

Map Created:8/7/2019

Notes:

(approximate scale)

HighwaysMain ArterialsRailroadCity Limits (large scale)Township/RangeSectionSurface Management

Bureau of Land Management

Bureau of Reclamation

County

Indian Lands

Local or State Parks

Military

National Parks Service

Other

Private

State

State Wildlife Area

US Forest Service

US Fish & Wildlife ServiceAPN 215-10-024A and 029AFrom Kingman Arizona, take I-40 south, exit 37, north to .Quartzite Drive. Approximately 18 miles south-west of Kingman, AZ

APN 209-01-097, 100 & 101From Kingman Arizona, takeI-40 south, exit 37, west to Sacramento Rd. Approximately 18 miles southwest of Kingman, AZ.

KINGMAN

FUTUREI-11

“The Hive”717 Acre,$3B Solar

Data Center

PRAXAIR

KINGMANPRISON

BLACK MTGENERATION ST

GRIFFITHLOGISTICS HUB

GRIFFITHLOGISTICS HUB

FUTURE FEDEX

MOHAVEBLOCK CO

FISH &GAME

MEYERSDISTRIBUTION

GRIFFITH ENERGYFACILITY

FUURE NORTHERN AZ ENERGY PLAN


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OBLIQUE MAP

KINGMAN

LAS VEGAS


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14,367.5 70,171

This map is a user generated static output from the Mohave County Interactive Map Viewer and is for general reference only. Data layers that appear on this map may or may not be accurate, current, or otherwise reliable. THIS MAP IS NOT TO BE USED FOR NAVIGATION, AS A LEGAL DOCUMENT, FOR PROPERTY DESCRIPTIONS, OR DETERMINATION OF LEGAL TITLE, AND SHOULD NEVER BE SUBSTITUTED FOR SURVEY OR DEED INFORMATION. The user agrees to comply with the Limitation of Use and the Assumption of Risk as stated in the full disclaimer at http://gis.mohavecounty.us

Interactive Map Viewer

© 2017 Mohave County Information Technology

gis.mohavecounty.us

5,847.60 11,695.2

1:

Legend

70,171

Feet

Map Created:8/9/2019

Notes:

(approximate scale)

Land Use General Plan GroupedAlternative Energy

Commercial Recreation

General Commercial

Heavy Industrial

High Density Residential

Light Industrial

Light Industrial/PUD

Low Density Residential

Medium Density Resid/PUD

Medium Density Residential

Neighborhood Commercial

Public Facilities

Public Lands

Public Parks

Rural Development Area

Rural Industrial

Rural Residential

Suburban Development Area

Suburban Estates

Suburban Residential

Urban Development Area

HighwaysMain ArterialsCollectorsLocalRailroadCity Limits (large scale)Surface Management

Bureau of Land Management

Bureau of Reclamation

County

Indian Lands

Local or State Parks

Military

National Parks Service

Other

Private

State

State Wildlife Area

US Forest Service

US Fish & Wildlife Service

LAND USE MAP


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Distribution Hub

Anthony J. Lydon, SIOR, CSCMPManaging DirectorSupply Chain & Logistics Solutions+1 602 282 [email protected]

Marc D. Hertzberg, SIORManaging DirectorSupply Chain & Logistics Solutions+1 602 282 [email protected]

For additional information:

www.us.joneslanglasalle.com/phoenix

Mohave County, AZGriffith Logistics Hub

SCAN THIS QR CODE TO FIND OUT MOREABOUT JONES LANG LASALLE, PHOENIX

©2012 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.

Arizona vs. CaliforniaBusiness Cost Comparison

Corporate Income Tax

Arizona: 6.968% California: 8.84%

State Personal Income Tax

Arizona: 2.59 - 4.54% California: 9.55 – 10.55%

State Sales Tax

Arizona: 6.6% California: 8.25%

Gasoline Tax

Arizona: $0.19/gallon California: $0.48/gallon

Personal Property Tax

Arizona:First $10,000 – 2.59%Next $15,000 – 2.88%Next $25,000 – 3.36%Next $100,000 – 4.24%Over $150,000 – 4.54%

Source: The Tax Foundations

California:First $7,168 – 1.25%Next $9,826 – 2.25%Next $9,827 – 4.25%Next $10,412– 6.25%Next $9,822 – 8.25%Next $952,945 – 9.55%Over $1,000,000 – 10.55%

Ports of Los Angeles & Long Beach

SUBJECT

DESTINATION DISTANCE DRIVE TIME

Las Vegas 104 Miles 2:00 Hours

Phoenix, AZ 184 Miles 3:25 Hours

Riverside, CA 284 Miles 4:30 Hours

Tucson, AZ 305 Miles 5:22 Hours

Los Angeles, CA 318 Miles 5:10 Hours

Long Beach 332 Miles 5:17 Hours

San Diego, CA 380 Miles 6:00 Hours KINGMAN

FUTUREI-11


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Mohave County is in the northwestern corner of the state of Arizona. The county seat is Kingman and the largest city is Lake Havasu City. Mohave County contains parts of the Grand Canyon National Park and Lake Mead National Recreation Area. The Kaibab, Fort Mojave and Hualapai Indian Reservations also lie within the county.

MANUFACTURING: Mohave County’s manufacturing industry is involved in the production of high value-added hard goods ranging the gamut of materials from composites and metals, to plastics and refractory materials. Manufacturing companies benefit from their Mohave County location with convenient access to transportation, low business costs, business-friendly environmental regulations, easy-access to savvy manufacturing talent, and an active year-round lifestyle.

DISTRIBUTION, LOGISTICS & TRANSPORTATION: The Mohave region’s Distribution, Logistics and Transportation Industry Cluster is currently in a strategic position for growth as Pacific ports and other west coast inland ports continue to reach capacity and push eastward. The ability for multimodal transportation opportunities also abound with the Mohave region’s access to major highway, rail, and airport operations in the vicinity.

This property is located within the Opportunity Zones under the Tax Reform Act.

The recently passed Tax Reform Act included a potential tax break for investors. Through this program, an investor may defer capital gains taxes on the sale of any asset by investing those gains through a Qualified Opportunity Fund. These original taxes can potentially be deferred until 2026, or upon the sale of the new investment (whichever is earlier). Alongside the deferral, this original capital gains tax is reduced by up to 15% over time. In addition to those benefits, when held long enough, appreciation from the new investment can be realized tax free.

How does the opportunity zones program work?

• An investor sells an asset and generates a capital gain. The capital gains from that investment must be reinvested within 180 days into a designated Opportunity Zone (OZ). An OZ is a specially designated census tract. Large parts of the U.S. are eligible for designation, including many commercial, industrial and residential areas.

• If the investment is held, the capital gains liability on the original investment will be reduced by 10% after five years and by 15% after seven years. After 10 years, the new capital gains taxes generated from the opportunity fund investment are reduced to zero.

Opportunity Zone Mohave County

SOURCE: MOHAVE COUNTY ECONOMIC DEVELOPMENT


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The Hoover Dam Bypass Bridge (Mike O’Callaghan–Pat Tillman Memorial Bridge) spans the Colorado River and the American states of Arizona and Nevada. It is located southeast of Las Vegas in the Lake Mead National Recreation Area.

For many years US Route 93 across the Hoover Dam was considered inadequate and unsafe for the increasing volume of traffic and plans to bypass it culminated in the Hoover Dam Bypass Project, a 3.5 mile corridor from Clark County, Nevada, to Mohave County, Arizona. The central element of this project was a new bridge 460 m (1,500 ft) downstream and high above the dam.

The purpose of the bridge is to reduce travel time in the vicinity, minimize the potential for pedestrian-vehicle accidents and to safeguard the dam and power plant.

Hoover Dam BypassInterstate 11 (I-11) is a north-south Interstate Highway tenantatively planned to run from Nogales, Arizona to the vicinity of Reno, Nevada by the way of Kingman, Arizona. The route will provide a direct connection from I-40 and I-15 and grant great accessibility to Pacific coast commerce and sea ports.

Interstate 11

SITE

SITE

FUTUREI-11

KINGMAN


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The Canamex Trade Corridor will serve as a direct and highly efficient transportation corridor for goods, services, people and information between Canada, Mexico and the United States. By locating in the Golden Valley area, industrial users will be connected to over 3,800 miles of superhighway providing central access to the entire Southwestern United States and improved access for the North-South flow of goods. Results will include increased transport productivity and reduced transportation costs.

Rumors of an Intermodal Hub coming to the Kingman area are abundant. The Kingman area is a prime location providing central access to Nevada, California and the rest of Arizona and the surrounding states. Locating an industrial user in this region would provide quick access to the site from the Hub when product arrives from the Ports.

Inland Ports cause a tremendous economic impact in their areas and would result in the creation of thousands of jobs, drastically enhancing the surrounding area and local economy.

Camanex Trade Corridor & Intermodal Station


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$3B Solar Powered Data Center

Two companies are partnering in development and operation of a $3 billion renewable energy-powered data center about 12 miles south of Kingman.Solar panels already are arriving for assembly at the 717-acre site off of Interstate 40.

Pegasus Group Holdings and Plus Minus Power have crews constructing “The Hive,” which will generate 340 megawatts of electricity — nearly half the

output of Hoover Dam. About 160,000 solar panels will power hundreds of cargo containers that will house up to a half-million computers.

“We’re going to be providing service to people who have servers that need to run them, so it could be everything from movie studios that render 3-D animated movies that need servers to process data, to disaster recovery and data storage to medical companies that do human genome sequencing,” said Jay Bloom, a member of the Pegasus Group Holdings’ board. He said this data center is unique as it will have its own power supply and because it is decentralized.

“Instead of one big massive building, we’ll have hundreds of modified (cargo) containers that will house 500 to 1,000 servers each,” Bloom said. “We’re moving at light speed with this project. We’ll be fully operational by the end of the year.”

SOURCE: MOHAVEDAILYNEWS.


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The Upper Colorado River Planning Area is composed of nine groundwater basins located in northwestern Arizona, south and east of the Colorado River. Elevation ranges from 450 feet to 8,417 feet. Most of the planning area is within Mohave County; the planning area also includes small portions of Coconino, La Paz and Yavapai counties.

The basin geometry model for the Hualapai Valley basin consists of three sub-basins: the Kingman, Hualapai, and Gregg sub-basins. Kingman Farms at Red Lake lies within the Gregg sub-basin within the Hualapai Valley basin.

In the southern Gregg sub-basin, which is estimated to be 1,400 meters (4,593 feet) deep, saturated basin fill includes primarily fine to coarse-grained sedimentary deposits.

Groundwater storage to 400 m below land surface (BLS) in the Hualapai Valley basin is estimated to be 14.1 km3 (11.4 million acre-feet).

The Hualapai Valley Basin is a medium-size basin in the north central part of the planning area at 1,212 square miles. The basin is characterized by a wide north-south trending valley, mountains along the west basin margins and cliffs and plateau on the eastern basin boundary. Principal geographic features include:

LOCAL AREA ANALYSIS

EXECUTIVE SUMMARY

CONTINUED LAS190114


WATER AVAILABILITY

The Upper Colorado River Planning Area is composed of nine groundwater basins located in northwestern Arizona, south and east of the Colorado River. Elevation ranges from 450 feet to 8,417 feet. Most of the planning area is within Mohave County; the planning area also includes small portions of Coconino, La Paz and Yavapai counties.

The basin geometry model for the Hualapai Valley basin consists of three sub-basins: the Kingman, Hualapai, and Gregg sub-basins. Kingman Farms at Red Lake lies within the Gregg sub-basin within the Hualapai Valley basin.

Arizona Watersheds

WATER AVAILABILITY

CapitalCounty SeatFreewayWatershedCountyArizona BoundtryTownship and Range


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• Principal community of New Kingman-Butler, the small community of Hackberry and the national park service facilities at South Cove.

• Hualapai Valley running through the center of the basin• Red Lake, a dry lake in the center of the basin• Truxton Wash running from the southeast near Hackberry to Red Lake• The Cerbat Mountains on the southwestern basin boundary with the highest

point in the basin, Cherum Peak at 6,978 feet• Mt. Tipton on the western basin boundary in the Cerbat Mountains• The lowest point in the basin is at Lake Mead at approximately 1,100 feet• The Grand Wash Cliffs located along the eastern basin boundary• The White Hills located along the northwest basin boundary

Major aquifers, well yields, estimated natural recharge, estimated water in storage, number of index wells and date of last water-level sweep are shown on the following table. The major aquifers include basin fill, sedimentary rock and volcanic rock. Flow direction is from the south to the north in most of the basin and east to west near New Kingman-Butler.

Storage estimates for this basin range from 3.0 million acre-feet to 5.3 million acre-feet to a depth of 1,200 feet. Natural recharge estimates range from 2,000 acre-feet per year (AFA) to 3,000 AFA. Recharge to the aquifers comes principally from streambed infiltration.

LOCAL AREA ANALYSIS

EXECUTIVE SUMMARY

CONTINUED LAS190114


Storage estimates for this basin range from 3.0 million acre-feet to 5.3 million acre-feet to a depth of 1,200 feet. Natural recharge estimates range from 2,000 acre-feet per year (AFA) to 3,000 AFA. Recharge to the aquifers comes principally from streambed infiltration.

WATER AVAILABILITY


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LOCAL AREA ANALYSIS

EXECUTIVE SUMMARY

CONTINUED LAS190114


Water levels are shown for wells measured in 2003-2004. The Department annually measures 16 index wells in this basin, hydrographs for six of these wells are shown below. The Department measures water levels four times daily at one automated groundwater monitoring site in the southern portion of the basin. The deepest recorded water level in the basin is 924 feet east of New Kingman-Butler and the shallowest is 257 feet east of Stockton Hill Road in the center of the basin.

LOCAL AREA ANALYSIS

EXECUTIVE SUMMARY

CONTINUED LAS190114




Hualapai Valley Basin Groundwater Conditions

LOCAL AREA ANALYSIS

EXECUTIVE SUMMARY

CONTINUED LAS190114



WATER AVAILABILITY

Water-level change in feet between 1990-1991 & 2003-2004

Between-30 and -15Between -15 and -1Between -1 and +1Between +1 and +15Change Data Not Available

Generalized Flow Direction

Consolidated Crystalline & Sedimentary Rocks

Unconsolidated Sediments

Nevada State Boundary

Interstate Highway

Major Road

City, Town or Place

number is depth to water infeet during 2003 - 2004.letter is hydrograph


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LOCAL AREA ANALYSIS

EXECUTIVE SUMMARY

CONTINUED LAS190114


LOCAL AREA ANALYSIS

EXECUTIVE SUMMARY

CONTINUED LAS190114


Well yields in the basin range from less than 100 gallons per minute to greater than 2,000 gallons per minute. One source of well yield information, based on 33 reported wells, indicates that the median well yield in this basin is 900 gallon per minute.

Hualapai Valley Basin

Hydrographs Showing Depth to Water in Selected Wells

A

B

C

D

E

F

Well yields in the basin range from less than 100 gallons per minute to greater than 2,000 gallons per minute. One source of well yield information, based on 33 reported wells, indicates that the median well yield in thisbasin is 900 gallon per minute.

WATER AVAILABILITY

Dep

th t

o W

ater

in F

eet

Belo

w L

and

Sur

face

Dep

th t

o W

ater

in F

eet

Belo

w L

and

Sur

face


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LOCAL AREA ANALYSIS

EXECUTIVE SUMMARY

CONTINUED LAS190114



LOCAL AREA ANALYSIS

EXECUTIVE SUMMARY

CONTINUED LAS190114



LOCAL AREA ANALYSIS

EXECUTIVE SUMMARY

CONTINUED LAS190114


Well Yields

WATER AVAILABILITY

Greater than 2000 Gals/min

Between 1000 and2000 gals/min

Between 500 and 1000 gals/min

Between 100 and 500 gals/min

Less than 100 gals/min

Consolidated Crystaline Sedimentary Rocks

Unconsolidated Sediments


Interstate Highway

Major Road

City, Town or Place


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Sites with parameter concentrations that have equaled or exceeded drinking water standards, including location and parameter(s) are shown in the table to the right.

LOCAL AREA ANALYSIS

EXECUTIVE SUMMARY

CONTINUED LAS190114


Sties with parameter concentrations that have equaled or exceeded drinking water standards, including location and parameter(s) are shown in the table below.

LOCAL AREA ANALYSIS

EXECUTIVE SUMMARY

CONTINUED LAS190114


Sties with parameter concentrations that have equaled or exceeded drinking water standards, including location and parameter(s) are shown in the table below.

WATER AVAILABILITY

Notes:1Water quality samples collected beween 1976 and 20002Sb = Antimony

As = ArsenicBe - BerylliumCr = ChromiumF = FluoridePb = LeadNO3 = NitrateRad = One or more of the following radionuclides - Gross Alpha, Gross Beta, Radium and Uanium


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LOCAL AREA ANALYSIS

EXECUTIVE SUMMARY

CONTINUED LAS190114



LOCAL AREA ANALYSIS

EXECUTIVE SUMMARY

CONTINUED LAS190114


There are no impaired lakes or streams in this basin. All community water systems are regulated under the Safe Drinking Water Act and treat water supplies to meet drinking water standards. Not all parameters were measured at all sites; selective sampling for particular constituents is common.

Thirty-one sites have parameter concentrations that have equaled or exceeded drinking water standards. Frequently equaled or exceeded parameters include fluoride and radionuclides. Other parameters commonly equaled or exceeded in the sites measured in the basin were arsenic, lead and nitrates.

LOCAL AREA ANALYSIS

EXECUTIVE SUMMARY

CONTINUED LAS190114



Thirty-one sites have parameter concentrations that have equaled or exceeded drinking water standards. Frequently equaled or exceeded parameters include fluoride and radionuclides. Other parameters commonly equaled or exceeded in the sites measured in the basin were arsenic, lead and nitrates.


Water Quality Conditions

WATER AVAILABILITY

Well, Spring or Mine Site that hasEqualed or Exceeded DWSConsolidated Crystalline& Sedimentary RocksUnconsolidated Sediments


Interstate HighwayMajor RoadCity, Town or Place


Thirty-one sites have parameter concentrations that have equaled or exceeded drinking water standards. Frequently equaled or exceeded parameters include fluoride and radionuclides. Other parameters commonly equaled or exceeded in the sites measured in the basin were arsenic lead and nitrates.


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Cultural water demand date including population, number of wells and the average well pumpage and surface water diversions by the municipal, industrial and agricultural sectors are shown in the table below.

LOCAL AREA ANALYSIS

EXECUTIVE SUMMARY

CONTINUED LAS190114


Cultural water demand date including population, number of wells and the average well pumpage and surface water diversions by the municipal, industrial and agricultural sectors are shown in the table below.

WATER AVAILABILITY


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LOCAL AREA ANALYSIS

EXECUTIVE SUMMARY

CONTINUED LAS190114



LOCAL AREA ANALYSIS

EXECUTIVE SUMMARY

CONTINUED LAS190114


The population in this basin has tripled since 1980, increasing from 11,361 in 1980 to 37,544 in 2000. There are no recorded surface water diversions in this basin.

The groundwater use has increased in this basin since 1971, with an average of 3,850 AFA from 1971-1975 to an average if 9,050 AFA from 2001-2005. The majority of this demand, 8,900 AFA, is for municipal use. The City of Kingman, in the Sacramento Valley Basin, obtains most of its water from well fields in this basin. Most of the municipal and industrial demand is in the vicinity of the New Kingman-Butler with a smaller portion of municipal demand along Pierce Ferry Road.



Hualapai Valley Basin Cultural Water Deman

LOCAL AREA ANALYSIS

EXECUTIVE SUMMARY

CONTINUED LAS190114




Demand Center

WATER AVAILABILITY

M & I - High Intensity

M & I - Low Intensiry

Indian Reservation

Small Mine / QuarryIndian ReservationBoundaryNevada State BoundaryInterstate HighwayMajor RoadCity, Town or Place


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Industrial groundwater demand is minimal in this basin, less than 300 AFA from 1991-2005. All industrial groundwater demand is for mining. There are three small mines or quarries in the basin, two north of Pierce Ferry Road and one on the basin boundary north of New Kingman-Butler.

As of 2005, there were 918 registered wells with a pumping capacity of less than or equal to 35 gallons per minute and 91 wells with a pumping capacity of more than 35 gallons per minute.

The map below was provided by Saeid Tadayon, Hydrologist with the U.S. Geological Survey, Arizona Water Science Center (520-670-6671x254). He maps and monitors wells throughout Arizona. We asked Mr. Tadayon about the quality and quantity of water in the valley as well as rights of owners and farmers. He stated that there are no restrictions on water use in the valley and that land owners’ and farmers’ water use is unrestricted. Water quality is considered good and there are water levels to support farming for 100 years. When asked what would be the ideal crop in the valley, he stated he believed the best crop would be permanent crops of dates, pecans and almonds.

LOCAL AREA ANALYSIS

EXECUTIVE SUMMARY

CONTINUED LAS190114


Industrial groundwater demand is minimal in this basin, less than 300 AFA from 1991-2005. All industrial groundwater demand is for mining. There are three small mines or quarries in the basin, two north of Pierce Ferry Road and one on the basin boundary north of New Kingman-Butler.

As of 2005, there were 918 registered wells with a pumping capacity of less than or equal to 35 gallons per minute and 91 wells with a pumping capacity of more than 35 gallons per minute.

The map below was provided by Saeid Tadayon, Hydrologist with the U.S. Geological Survey, Arizona Water Science Center (520-670-6671x254). He maps and monitors wells throughout Arizona. We asked Mr. Tadayon about the quality and quantity of water in the valley as well as rights of owners and farmers. He stated that there are no restrictions on water use in the valley and that land owners’ and farmers’ water use is unrestricted. Water quality is considered good and there are water levels to support farming for 100 years. When asked what would be the ideal crop in the valley, he stated he believed the best crop would be permanent crops of dates, pecans and almonds.

WATER AVAILABILITY


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AGRICULTURE

Permanent Tree Nut Crop Market Summary

The tree nut industry has grown rapidly. The world has learned through tree nut marketers and nutritionists that nuts are part of a healthy diet. More people in fast growing countries, including China and India, are entering the middle class and have more disposable income. They want a better diet including nuts, meat and other foods.

Permanent crops offer an overlooked opportunity in agriculture. With a more attractive return profile than traditional asset classes and row crops, permanent crops current income of 10% over the past 20 years, double the 5% current income for row crops. Permanent crops are well positioned to take advantage of the macro trends global population growth and the associated increase in food consumption, the rise of the middle class and their demand for more produce, and a limited supply of arable land.

Permanent crops, particularly perennial tree nut crops, represent a large, untapped market in agriculture. The permanent crop industry is well-positioned for institutional investment by transitioning to professional management and scaling operations, given its fragmented and capital constrained current status.

The macro trends of rising global population and the expansion of the middle-class consumption, decreasing supply of arable land and changing consumption habits toward nutritious foods are driving the opportunity in permanent crops. International markets, largely Asia, are fueling a material portion of this growth. Permanent crops display an attractive long-term return profile.

Family of individual owner-operators currently represents 86% of US farming operations, which are managed by an aging population of farmers. Currently farming operations are severely constrained with respect to both capital and management resources but continue to face a rising unmet demand. Emphasizing professional management across the value chain and scaling operations of permanent tree crops can lead to increased profit opportunities.

The increasing consumer focus on healthy and nutrient-dense foods is a key driver of demand for permanent tree crops, particularly nut crops. Demand for fruits and nuts are projected by the USDA to be the fastest growing major food category over the coming years. International markets will be a key contributor to this growth, with Asia accounting for much of that increased demand.


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Domestic dairy replacements are not the only source of growing demand for almonds. Almonds are a big export crop. A couple of recent articles in the Financial Times have highlighted the increased appetite for nuts of all kinds, including almonds, among Chinese consumers. China is already the biggest foreign buyer of almonds, and its demand has been growing by as much as 30% per year.

The table below illustrates the historic price of almonds over the past 10 years and is currently at $3.10 per pound (in shell).

Pistachio prices are rising too, and for many of the same reasons. In fact, there is just one big difference between the two crops: Iran produces half of the world’s pistachios, with the United States only

in second place. Cash register data from US grocery stores, including Wal-Mart, reveal a 24% increase in pistachio sales in 2012 over the previous year.

One hundred percent of the US pistachio crop is grown in the West, including California (98.5%), Arizona and New Mexico. There are about 850 pistachio growers in the tri-state area. California growers have about 250,000 acres of

pistachio and sell to 22 countries. The financial impact of the US pistachio industry is about $1.3 billion.

Permanent crops have productive lives of 25 to 50 years and typically produce one harvest per year. Because of their long lives, a significant amount of permanent cropland value resides in the tree, bush or vine, as well as capital improvements such as irrigation systems or structures used to grow crop. Returns are impacted on the revenue side by the yield and quality of that crop, which are influenced by the growing practices implemented by the farmer and on the expense side by the cost management of key inputs such as water, nutrients and pesticides.

LOCAL AREA ANALYSIS

EXECUTIVE SUMMARY

CONTINUED LAS190114


Pistachio prices are rising too, and for many of the same reasons. In fact, there is just one big difference between the two crops: Iran produces half of the world’s pistachios, with the United States only in second place. Cash register data from US grocery stores, including Wal-Mart, reveal a 24% increase in pistachio sales in 2012 over the previous year.

One hundred percent of the US pistachio crop is grown in the West, including California (98.5%), Arizona and New Mexico. There are about 850 pistachio growers in the tri-state area. California growers have about 250,000 acres of pistachio and sell to 22 countries. The financial impact of the US pistachio industry is about $1.3 billion.

Permanent crops have productive lives of 25 to 50 years and typically produce one harvest per year. Because of their long lives, a significant amount of permanent cropland value resides in the tree, bush or vine, as well as capital improvements such as irrigation systems or structures used to grow crop. Returns are impacted on the revenue side by the yield and quality of that crop, which are influenced by the growing practices implemented by the farmer and on the expense side by the cost management of key inputs such as water, nutrients and pesticides. MARKETS AND TRENDS

Domestic and global population growth is the major driver of increased demand for farmland to feed the growing population. The US Census Bureau estimates that the US population will grow by 10% during the current decade to 348 million people and the global population will grow by 11.8% over the same period to approximately 8 billion people.

The supply of farmland is shrinking due to urbanization, strict water regulations, etc.

Changing consumption patterns also contribute to the increasing value of farmland. As large nations, such as China and India modernize, their consumption of meat continues to increase. It takes over five times the amount of grain to produce an equivalent number of calories in meat protein.

As demand for meat increases, it is expected that demand for grain will increase. The increased demand due to population growth and changing consumption patterns, coupled with the development of agricultural land for urban and industrial purposes, could result in significant upward pressure on farmland prices.

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MARKETS AND TRENDS

Domestic and global population growth is the major driver of increased demand for farmland to feed the growing population. The US Census Bureau estimates that the US population will grow by 10% during the current decade to 348 million people and the global population will grow by 11.8% over the same period to approximately 8 billion people.

The supply of farmland is shrinking due to urbanization, strict water regulations, etc.

Changing consumption patterns also contribute to the increasing value of farmland. As large nations, such as China and India modernize, their consumption of meat continues to increase. It takes over five times the amount of grain to produce an equivalent number of calories in meat protein.

As demand for meat increases, it is expected that demand for grain will increase. The increased demand due to population growth and changing consumption patterns, coupled with the development of agricultural land for urban and industrial purposes, could result in significant upward pressure on farmland prices.

The United States Department of Agriculture (USDA) estimates that in 2007 there were approximately 2.2 million farms on 922.1 million acres of land in the United States. This farmland includes land dedicated to any form of farming, including crop production. Out of this total, there were 1.7 million farms dedicated to producing crops, or cropland, on 406.4 million acres of land, resulting in an average of approximately 241 acres per farm.

The USDA’s 2007 Census of Agriculture estimates the total annual market value of crops harvested in the United States at $143.7 billion. According to the USDA, as of 2007, approximately 86% of farms in the United States were owned by families.

Crops can be divided into two sub-categories, annual row crops and permanent crops. Annual row crops, such as alfalfa, corn, wheat, peppers, squash, lettuce, and others, are planted and harvested annually, or more frequently. Permanent crops, such as oranges, almonds and grapes, have plant structures such as trees or vines that produce crops annually without being replanted. Annual row crops can be further divided into commodity crops and fresh produce crops.

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The following is a chart that outlines the 28-day harvest schedule for alfalfa.

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vines that produce crops annually without being replanted. Annual row crops can be further divided into commodity crops and fresh produce crops.

The following is a chart that outlines the 28-day harvest schedule for alfalfa.

Alfalfa Market Summary

Valued at $20 billion a year, alfalfa is the 4th largest US crop by acreage. The demand for premium alfalfa outweighs production because of draught conditions throughout the US, the need by

dairy farmers for high nutrient alfalfa for their milk cows (individual dairy cows produce 61% more milk than they did 25 years ago), export markets continue to grow due to dwindling access to water and arable land, especially China, (it costs little to freight goods back to China because containers from Asia arrive full but often return empty), California, the largest producer of alfalfa, is steadily eliminating alfalfa acreage replacing it with more profitable crops such as almonds and wine grapes due to water restrictions. With so much demand and diminished supplies, alfalfa prices have more than doubled over the past five years. Another opportunity for high returns is in the ever-growing organic market. As the demand for organic beef, cheese and milk grows, so does the need for more organic alfalfa.

Farmers are receiving 40% higher prices per ton and the demand far outweighs the supply.

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The United States Department of Agriculture (USDA) estimates that in 2007 there were approximately 2.2

million farms on 922.1 million acres of land in the United States. This farmland includes land dedicated to any

form of farming, including crop production. Out of this total, there were 1.7 million farms dedicated to producing

crops, or cropland, on 406.4 million acres of land, resulting in an average of approximately 241 acres per farm.

The USDA’s 2007 Census of Agriculture estimates the total annual market value of crops harvested in the

United States at $143.7 billion.

According to the USDA, as of 2007, approximately 86% of farms in the United States were owned by families.

Crops can be divided into two sub-categories, annual row crops and permanent crops. Annual row crops, such

as alfalfa, corn, wheat, peppers, squash, lettuce, and others, are planted and harvested annually, or more

frequently. Permanent crops, such as oranges, almonds and grapes, have plant structures such as trees or

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Organic Foods

Organic foods command premium prices in the United States and organic farmland is scarce. Despite modest growth in the number of US organic farmers, serious organic supply shortages

have emerged in many food sectors over the last decade and additional organic farmers are needed to meet projected market demand. Converting conventional farm land can be an expensive and long process. In order to gain organic certification, farmers must prove that no prohibited substances have been used on that farm for at least three years, reducing the chance that the farm has residual contamination of crops, soil or water. This can result in much lower yields, higher costs, and lower revenue for existing farms. The subject is considered natural and “undisturbed” land, which would make it possible for organic certification.

ConclusionThere is adequate water with 3 – 5.3 million-acre feet proven water resource (USGS) available within the underground aquifers. Also, the depth to water is relatively shallow and there are no water restrictions at this time (which compares favorably to other farming areas such as California and Texas). The water quality supersedes the Colorado River in quality, with low salt ppm (parts per million). Subsurface drip irrigation systems (SDI), currently used

by Kingman Farms and other operators in the area greatly increase water conservation practices and reduce the cost to irrigate. The Energy costs to deliver water averages $76.18 per acre foot.

The soil has a pH level of 7.3 to 8.5, which is considered to be favorable for farming.

Kingman is located in a desert climate on the edge of the Mojave Desert, but its higher elevation and location between the Colorado Plateau and the Lower Colorado River Valley tempers summer high temperatures and cold winters. The weather history in this region show only 12 to 16 days that are 100 degrees, or above which allows for good pollination for crops. The temperature makes for nearly year-round farming with mild summers and winters allowing for year-round production. Temperatures range between 10 to 15 degrees cooler in the summer, which keeps the plants from the stresses of heat.

The subject has good soil, and good climate to support a wide variety of crop types.

AGRICULTURE

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Located in The Opportunity Zone - LoopNet...Corporate Income Tax 4.9% 8.84% State Personal Inc Tax 2.59 - 4.54% 9.55 - 13.30% State Sales Tax 5.6% 7.25% Gasoline Tax $0.19 / Gallon