Three Flags Presentation 10.17.09.2

MOVING UP YOUR

INVESTMENT TO A

HIGHER GROUND

www.6development.com

http://www.6development.com/

HOW TO BUILD WEALTH IN TOUGH

TIMES? At times like this, huge opportunity is out there if, you

don’t settle for conventional thinking. Break through the barriers in pursuit of new opportunity. We understand the current economic crises. But we can be constructive from the circumstances. We have to navigate ourselves to develop agility and resilience.



WHAT IS THE SMARTEST WAY TO PROTECT YOUR INVESTMENT DURING TOUGH TIMES?

Wealth development is the attractive draw to Real Estate, Vacant Land, Residential, and Commercial/Retail properties that have equity growth potential.

Real estate will always have value.

Don’t settle for commensurate investment. Shift to a ladder that

will take your investment to higher returns and value.



THREE FLAGS CENTER IS A COMMERCIAL REAL ESTATE

OPPORTUNITY THAT CAN TAKE YOUR INVESTMENT TO A

SECURE FUTURE AND ENSURE VALUE.

Knowing where to invest your money is just one concern. Who can you trust to invest, is another question?



THREE FLAGS CENTER

1110 – 1150 North Hills Blvd.Reno, Nevada 89506

Another Development by:6

development, LLC




Why Invest in Reno, Nevada?

Why Invest in Three

Flags Center?

What is the Investment

Return?

INVESTMENT OPPORTUNITY



WHY INVEST IN RENO, NEVADA?

Reno and Sparks have been a stable growing market for over 50 years. *

The City of Reno, Nevada was long known as the "The Biggest Little City in the World" It is Nevada's second largest city, and the largest city in Northern Nevada. Reno is larger than most cities in the United States and now called "America's Adventure Place". Reno is where the Safari Club International holds its annual convention, and has a variety of annual events. Reno is a hub for outdoor recreation including mountain biking, rock climbing, kayaking, and most snow activities from late fall to early spring. **

www.6development.comTruckee River White Water Park


Nevada is ranked as a leader in the nation for its development of alternative energy sources such as geothermal and solar energy. Nevada’s technology support, competitive energy rates and telecommunications infrastructure serve all types of industries looking to relocate or expand into Nevada. ***

Ormat’s Geothermal, Reno NV

Nevada is an ideal location for companies seeking cost-effective rapid access to domestic and international markets. With an effective market area of 51 million people within a day’s drive, business can take advantage of Nevada’s low operational costs while distributing goods to a multitude of states, including California, the world’s sixth largest marketplace. For this reason, Nevada is home to one of the fastest–growing warehouse and distribution centers in the west. ***



Nevada has consistently ranked as one of the best locations for start-up businesses. **

Tourism-connected industries such as hotels, casinos, amusement and recreation facilities. ***

Nevada’s arts, cultural and entertainment environments are rich and diverse. **

Reno Aces Ballpark

Downtown Reno



Reno Tourism officials have landed three new conventions for veterans, hunters and volleyball players that will bring more than 100,000 visitors to Reno from 2012 to 2017. Combined, they will bring nearly 115,000 visitors and more than 76,000 room nights to the area. ****

Reno , Nevada Skyline

** http://www.dwgt.net/city/reno/* http://www.investinreno.com/whyreno.html

*** http://winnemuccaworks.com/why_nevada/**** http://renoareafun.com/



RENO, NV FAST FACTS Location:The city of Reno comprises 69.1 square miles of

Washoe County, bounded on the west by the towering

Sierra Nevada Mountains & on the north & east by the

mountains of the high desert Great Basin.

Elevation:4,411 feet above sea level

Population:Reno 203,000

Washoe County 409,085

Climate:7.5 inches of precipitation per yr, most in the form of

snow. Winter lows reach down to the 20’s summer

highs in the 90’s. Reno boasts more than 300 sunny

days a year & 4 distinct seasons.

Taxes:Nevada encourages business & has NO:

i. State corporate income tax

ii. Personal income tax

iii. Unitary tax

iv. Franchise tax

v. Inventory tax

vi. Inheritance tax

vii. Estate and/or gift tax

viii. Capital gains tax

Mileage from Reno to Other Destinations:

Lake Tahoe 57

Sacramento 132

San Francisco 230

Las Vegas 450

Los Angeles 470

Salt Lake City 530

Portland 580

San Diego 600

Seattle 730

Phoenix 730

Denver 1030

i. 2 Major highway corridors: Interstate 80 & U.S. Highway 895

ii. Reno / Sparks Foreign Trade Zone

iii. Rail Service: Union Pacific , Burlington Northern Santa Fe & Amtrack

iv. Bus Service: Greyhound regional service, Citifare public transit service

v. Reno Tahoe International Airport: 14,000 passengers & 176 metric tons of cargo arrive & depart daily.



The Three Flags center is located just North of downtown Reno.

The area referred to as the North Valleys is an underserved market with huge potential.

The North Valleys area is the heart of Reno’s next big housing boom.

The site is located on North Hills Blvd with prime visibility from US 395 and approximately 1,000 ft of freeway frontage.

3.99 Acres Zoned AC

94% Pre-leased

WHY INVEST IN THREE FLAGS?



AVERAGE DAILY TRAFFIC COUNTS*

US-395N, .1 mi N of N/B on ramp Golden Valley Intch ‘Exit 73

62,500

US-395N, 0.2 mi S of the Golden Valley Intch.

72,500

*NDOT 2006

DEMOGRAPHICS* 1 Mile 3 Miles 5

Miles

Population: 3,741 25,515 90,713

Households: 1.303 9,076 32,216

MedianHousehold Income $55,240 $55,784

$55,644

*STDB 2008



SITE





SITE



SITE PLAN

EDGE FITNES

S

Available 2,064 SF



Project anchor, Dollar Tree is a $4.24 Billion Dollar Company and still growing.

JC&C wireless is a licensee of AT&T and will be the newest of several locations in the Reno/Sparks area.

Bully’s Sports Bar at the Three Flags Center; will be the newest addition to the most successful Sports Bar chain in the Northern Nevada area.

Edge Fitness will be the first full service fitness center in the North Valleys area with a population of over 90,000 within 5 mile radius.

Dollar Loan Center is currently one of the fastest growing payday loan centers. They currently have more than 50 locations throughout the US.

North Valleys Urgent Care under the supervision of Dr. Rose Paiva who currently has two other successful practices in the Reno/Carson area.

GREAT TENANTS IN AN UNDERSERVED RETAIL MARKET

EDGEFITNESS



TERM SIZE RENTRENT

INCREASE

Dollar Tree Stores, Inc. 10 Years 9,860 sq ft$10,846.00 Triple Net (1.10 psf)

n/a

Edge Fitness Center 10 Years 8,125 sq ft$14,218.75 Triple Net (1.75 psf)

Month 25 ($1.85psf)Month 37 (1.95 psf) Month 61 ($2.25 psf)

North Valleys Urgent Care 5 Years 1,885 sq ft$4,147.00 Triple Net ($2.20 psf)

Year 5 ($2.42 psf)

Dollar Loan Center 5 Years 1,600 sq ft$4,000.00 Triple Net ($2.50 psf)

n/a

JC&C Wireless – AT&T 5 ½ Years 1,186 sq ft$2,609.20 Triple Net ($2.20 psf)

Month 19 ($2.26 psf) Month 31 ($2.33 psf) Month 43 ($2.40 psf) Month 55 $2.47 psf)

Bully’s Sports Bar 10 Years 6,500 sq ft$17,550.00 Triple Net ($2.70 psf)

Month 57 ($2.88) Month 105 ($3.09)

TENANTS RENT INFO



1 5 10

$- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50

Dollar Tree

Edge Fitness

Urgent Care

Dollar Loan

AT & T

Bully's

Price Per Sq ft

Years

LEASES IN GRAPH



5 Years 10 Years

Ownership Percentage: 3.25% 3.25%

Annual Average Cash Returns $8,000$10,300

Annual Yield 8.00% 10.30%

Estimated profit using a 7.25% Cap rate ** $100,336$134,436

Estimated yield over 5 and 10 year term $40,000$51,500

Total Estimated Income from $100K Investment at sale: $140,336$185,936

Estimated Total Annual return on $100K Investment upon sale: 28.07% 37.19%

Internal Rate of Return (IRR) 19.17% 11.10%

SUMMARY OF 100K INVESTMENTAT 7.25% CAP RATE

** Assuming a 5% vacancy factor.



510

$0$20,000$40,000$60,000$80,000

$100,000$120,000$140,000$160,000$180,000$200,000

Investment

Return of Investment

Valu

e

of

Invest

ment

Years

BASE ON 100K INVESTMENT



5 Years 10 Years

Ownership Percentage 51.00% 51.00%

Annual Average Cash Return * $123,000 $161,000

Annual Yield 12.30% 16.10%

Estimated profit using 7.25% Cap Rate ** $1,574,508 $2,109,604

Estimated yield over 5 and 10 years $615,000 $805,000

Total Estimated Income from $1MMK Investment at sale: $2,189,508 $2,914,604

Estimated Total Annual return on $1MM Investment upon sale: 43.79% 58.29%

Internal Rate of Return (IRR) 26.11% 14.05%

SUMMARY OF 1M INVESTMENTAT 7.25% CAP RATE

** Assuming a 5% vacancy factor.



510

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

Investment

Return of InvestmentYear

s

Valu

e o

f

Inve

stm

en

tBASE ON 1M INVESTMENT



Gross Rents at end of year 5 (1st day of 6th year) $788,897

Gross Rents at end of year 10 $815,547

Average Gross Rent over 5 years less 5% vacancy $685,600

Average Gross Rent over 10 years less 5% vacancy $761,000

Cap Rate 7.25%

Vacancy factor of 5% 95%

Estimated Debt and equity balances at end of year 5 $7,250,000

Estimated Debt and equity balances at end of year 10 $6,550,000

Investment amount $1,000,000

(Occupied Rate)

VARIABLES & ASSUMPTIONSFOR 100K AND 1M INVESTMENT

(Future Cap rates cannot be predicted, but are based on best estimates.)



Estimated Debt Service Coverage Ratios (DSCR):

First year assuming 8% vacancy and other costs 1.26 to 1

First year assuming fully leased less 3% for other costs 1.33 to 1



10 Year Treasury:

3.6%

Money Market (avg): 2.0%

5 Year CD (avg):

3.0%

OTHER INVESTMENT

ANNUAL RATES

AS OF JUNE 15, 2009

THREE FLAGS PARTNERSANNUAL RATES

VS

EstimatedAnnual Yield :

8% - 16%

Estimated

Total Annual

Returns

Upon Sale

between 5

and 10 yrs:

26% - 58%



“ Retail: Blended vacancy rates for the retail sector are approaching 15 percent, with more pain on the way as local and national retailers hope to weather the current crisis. The Legends at Sparks Marina project is still under construction, with the long-term implications to surrounding retailers still in question. The only other retail project currently under construction, and fully pre-leased, is 6 Development’s Three Flags Center in north Reno, which is an example of today’s opportunities; smaller projects with necessary goods and services tailored to a specific sub-market, using today’s advantageous development costs. Well located retail land, at the right price, presents the opportunistic investor with great mid-term potential”.

http://www.nnbw.biz/ArticleRead.aspx?storyID=13269


Quoted from Nevada Business Weekly Article on 6/15/2009

http://www.nnbw.biz/ArticleRead.aspx?storyID=13269


“The biggest deeper in the whole area is the North Valleys, Brian Bonnenfant (Analyst for the Nevada’s Small Business Development Center) told the Contractors. They’ve got a lot of population and disposable income and people ignore it”.

Reno Gazzette-JournalArticle – “North Valleys could have a Big Future” - April 2, 2006Business SectionRe: Luncheon of the Associated Builders & Contractors, Sierra Nevada ChapterAuthor Bill O’Driscoll



From a retailer’s perspective, Golden Valley might be turning into the city of gold.

The number of houses in the North Valleys is estimated to expand by 35 percent over the next 5 to 10 years.

With 8,500 new housing units scheduled to be built in the north valleys within 10 years, Brian KIaiser, a business analyst with the Small Business Devleopment Center of the University of Nevada, Reno, said he expects to see a significant retail increase.

“For years, we’ve been asking, ‘Where’s the retail?’” Kaiser said. “Retail is finally catching on.”

A sign on the corner of Golden Valley Road and North Hills Boulevard announces that Quik Stop full-service gas station, convenience store and car wash will be moving into the area.

Senior Vice_President, Chris Waizmann at CB Richard Ellis Retail Properties said the Quik Stop is one of four properties in that immediate area for retail. Waizmann said they are looking to fill three other pads.

He said another lot nearby is under construction for a multi-family residential area or a big-box retail store geared toward “juniors” depending on what the area will support.

“In that immediate area, we’re already seeing more residential units,” Waizmann said. “We are anticipating a need for more restaurants and shops out there.”

In 2006, Kaiser said there were about 64,000 people in the North Valleys area living in 24,000 existing homes.

Kaiser said he expects to see new retail and strip malls built with the typical mix found in suburban shopping centers, such as a grocery store, a salon and an insurance center.

“For the most part, you’re going to see small-business retail and small strip centers rather than big-box construction – that would be my guess,” Kaiser said. “I just don’t know that that area is big enough to support )big-box stores) yet.”

“Any time you see this type of development, I think it’s a good sign for small businesses to start up and move in to support the growing population in these areas,” he said.

Reno Gazzette-JournalArticle – “More Retail Arriving Soon in Booming North Valleys” – April, 18, 2007Page 5CAuthor: Kristin Larson



MULTIPLY YOUR RETURNS WITH HIGH ANNUAL

YIELD

EQUITY GROWTH POTENTIAL

INCOME PRODUCING PROPERTY THROUGH

QUALITY LEASES

INVESTING IN THIS PROJECT HAS A GREAT CHANCE FOR



WHY INVEST WITH 6 DEVELOPMENT, LLC




6 development, LLC is a Nevada based full service commercial real estate development company. Our focus is the development & acquisition of quality Retail, Office and Industrial properties in the Western U.S.

We offer our clients and investors unmatched depth in real estate development, marketing and leasing, the entitlement process, property-asset management and the accounting and tax ramifications of real estate investment.

We are dedicated to provide our clients and so as our potential investor/s in building opportunities and cutting-edge projects with standard of excellence that generate success.

We assist in the success of experienced and beginning real estate

investors with utmost professionalism.

We are focus in development and acquisition of our every single projects.


OTHER PROJECTS

Chisholm Commons Fernley, NV

SOLD

Chisholm CrossingsFernley, NV

C Street PavillionSparks, NV

Reno, NV

SOLD



OUR VENTUREWELCOMES

FOREIGN INVESTORS



BENEFITS:

YOU WILL GET TO SECURE YOUR INVESTMENT IN A HIGHER POSSIBLE VALUE & ALL ITS ADVANTAGES AS MENTIONED IN PREVIOUS SECTION.

PLUS ….. YOU WILL HAVE THE OPPORTUNITY OF OBTAINING A U.S. GREEN CARD.









“6 Development is a company built on integrity and the value of relationships. They always exceed expectations and follow through on their commitments. Working with 6 development has set a standard for development that is unparalleled in this industry.”

— Tamra Defrank, Starbucks“It has been a joy working with Brendan Egan and his partner Jack

Dolan. 6 Development along with their architect, engineer, and attorney have made my job easier. Their immediate attention to our questions, issues, and needs is extremely rare in today’s business environment. I only wish 6 Development had more projects where I can locate a new store. Brendan and Jack’s personal attention plus professional work standards is what makes 6 Development stand out among all the other development firms.”

— Linda Duncan Real Estate Manager, Dollar Tree Stores, Inc.

“We very much value our relationship with 6 Development. They listen to their Tenants, they are responsive, and clearly understand that a successful project has to work for the Tenant and the Landlord. They take the long view.”— Jim Reynolds, Sr. Real Estate Manager, Great Clips, Inc.


CLIENT’S TESTIMONIALS


Chuck Alvey - Economic Development Authority of Western Nevada (EDAWN)

Michael Dermody – DP Partners

Greg Evangelatos – City of Fernley, City Manager

Heidi Gansert- Nevada State Assembly

Tina Iftiger- Economic Development Authority of Western Nevada (EDAWN)

Mitch Moody – Moody Weiske Contractors

Jim Morgan – Henderson and Morgan Law Firm

Jessica Sferrazza – Reno City Council

Fred Turnier – City of Fernley, Director of Community Development

REFERENCES



Each and every one of our business members is an incredible asset to the

group.

WITH US YOU WILL BE CONFIDENT THAT YOU ARE NOT JUST INVESTOR YOU ARE ALSO …….

OUR PARTNERS OUR FAMILY.

