The Sanctuary at Costa Grande Port O’Connor, TX

Prepared exclusively by Charles D. Christie

Broker/Waterfront Marketing, LLC

301 S. Bridge Street, Suite 3

Victoria, TX 77901

(361) 220-2322 (cell)

Location

The Sanctuary at Costa Grande is located about 2.5 hours from Houston, Austin, and San Antonio. The U.S. population chart shows that these 3 cities are in the top 11 largest cities in the entire U.S.

Rank City State 2015 Population Growth

(2000-2015)

1. New York NY 8,550,450 +6.6%

2. Los Angeles CA 3,971,883 +7.2%

3. Chicago IL 2,720,546 -6.0%

4. Houston TX 2,296,224 +16%

5. Philidelphia PA 1,576,442 +3.5%

6. Phoenix AZ 1,563,025 +17.7%

7. San Antonio TX 1,469,845 +26.2%

8. San Diego CA 1,394,928 +13.7%

9. Dallas TX 1,300,092 +9.1%

10. San Jose CA 1,026,908 +13.6%

11. Austin TX 931,830 +38.6%

THE SANCTUARY AT COSTA GRANDE

A spectacular waterfront community located on the Texas Gulf Coast! Located on the unspoiled eastern coast of Texas, approximately 125 miles from Houston and approximately 160 miles from San Antonio and Austin, nestled in nature, is a wildlife sanctuary with a lush array of diverse plants and animals – on land and in water. Nowhere else in Texas will you find this rich and rare living experience. The Sanctuary at Costa Grande, a resort community offering spectacular waterview and waterfront homesites.

For the fortunate few, living at The Sanctuary at Costa Grande means a life away from the every day routine. From the moment you turn onto the bridge and experience the neighborhood views from the entrance, you’ll know you’re in for a distinct stay. The entire location has been elevated to capture the best of The Sanctuary at any angle. Whether you walk, ride your bike, or boat through your surroundings, you’ll be wrapped in amazing natural views in each direction. In the backdrop, you’ll see the ocean and inspiring wetlands rare to Texas coast living. The views are unsurpassed, and the lifestyle even better. Discover the best kept secret on the Texas Gulf Coast.

The Sanctuary at Costa Grande has an exciting and impressive amenity package to help you and your family enjoy all that the community has to offer:

• Clubhouse with lagoon style pool • Walking trails • Mail center • Pocket parks for adults and children • Deep water marina with boat ramp and slips. • Basketball court • Tennis courts • Sandy beach • Boat and RV storage

Whether you’re young or just young at heart, at The Sanctuary you’ll discover a wealth of recreational opportunities that are beyond compare. With its magnificent clubhouse and spectacular pool to walking trails and a sandy beach, you’ll find our amenities beckoning you to come out and play or just relax under the warm Texas sun.

No other address in Texas is wrapped in such a panorama of wildlife refuge, all within minutes of charming towns and major metropolitan centers. At home, in Port O’Connor, you’ll sense the origins of a quaint fishing village,

just outside nationally renowned birding, fishing and shelling destinations, and home of the state’s only natural deep water pass.

The Port O’Connor area is home to 10 bays, 8 noted birding sites, 17 places to pier and wade fish, a beautiful Lighthouse and Magnolia Beaches.

Approximately 46 miles from The Sanctuary, you can experience the bustling appeal of Victoria, where history was written and the legendary Texas ranching industry began. It has advanced over centuries, into a spectacular center of professional, medical and retail prosperity and is now a premier venue for dining, shopping and markets.

Summary of Products

1. Approximately 80 unsold fully developed lots featuring waterfront, Intracoastal waterway, and waterview.

2. Patio home site proposed for 31 units.

3. 10 acre commercial tracts located on Hwy 185 with great road frontage and access.

4. Approximately 170 acres of undeveloped

land.

5. Deep water marina with approvals for additional docks.

Lot inventory

The Sanctuary at Costa Grande has 767 fully developed lots in the subdivision. There are currently 683 lots that have been sold. There are approximately 50+ homes built in the subdivision and we are seeing an average of about 10-12 new homes per year. The HOA is in good financial shape and the community is well maintained year around. The current HOA dues are $2,100 annually. The breakdown of unsold lots are as follows:

Waterfront Lots (60 and 75 feet frontage) $3,090,800 (retail value)

35 total lots

Waterfront Lots (100 feet frontage) $1,037,280 (retail value)

6 total lots

Waterfront Lots (Point Lots/100+ feet) $939,520 (retail value)

4 total lots

Intracoastal Lots $747,680 (retail value)

11 total lots

Waterview Lots $719,120 (retail value)

24 total lots

Total retail value of lot inventory $6,534,400.00

Patio Home Site

The Patio home site is approximately 4.77 acres and located on the southwest portion of the community. This site can be developed or sold off to a home builder in bulk. The following page will show the proposed design of the units which are standalone units with some having views of the Intracoastal Waterway and others with views of a fresh water lake.

Town home site $616,900 (bulk sale price)

$19,900 per site bulk sale price

Commercial Tracts

There are currently 5 commercial tracts of land located on Hwy 185 with road frontage. These tracts are 10 acres each which allows for an easy transaction that does not require re-platting. One 12 acres Hwy frontage tract was sold in 2015 for $300,000 or $25,000 per acre. These sites are perfect for boat storage, convenience stores, or retail.

Commercial Tracts $1,250,000 (retail price)

(5) 10 acre parcels

Undeveloped Land

There is approximately 170 acres of additional undeveloped land located north of the subdivision. This land would be suitable for additional development and tied in with the existing features and amenities of the subdivision.

Undeveloped Land $509,150 (land value)

Approximately 170 acres @ $2,995 per acre

Marina

The Sanctuary at Costa Grande is one of the largest inland marina projects on the Texas Coast, if not the largest. The marina basin is approximately 150 acres and ranges in depth from 5-7 feet. The existing permit issued by the Corp of Engineers allows for additional docks to be built. The breakdown is as follows:

Existing Marina Slips $1,680,000 (retail price)

(24) 50 foot wet slips @$70,000 each

These existing slips are currently being rented out to large off shore boats below the market price at $$400 per month. If all the slips in the Marina were rented instead of being sold this would equate to approximately $115,200 per year in annual boat slip rental income.

Additional Marina Docks Permitted

There are 3 locations for additional boat docks which are fully permitted and approved by the Corp of Engineers permit. The approximate retail value of the slips is around $40,000 each. The approximate cost to build the slips would be $20,000 each. The locations are as follows:

Southeast Pocket Park $1,920,000 (retail value)

48 approved covered slips $960,000 (net profit)

Southwest Pocket Park $1,920,000 (retail value)

48 approved covered slips $960,000 (net profit)

Marina Location Docks

There are 3 additional sites permitted for docks which are not yet built. These docks are in a prime location at our center island amenity site and next to our 3-lane boat launch. Also, there is a Marina building with restrooms, changing stations, showers, lockers, and ice machines.

Type “G” covered stalls $880,000 (retail value)

22 approved covered slips $440,000 (net profit)

*$40,000 sale price assumption and $20,000 cost to construct each

Type “C” covered stalls $990,000 (retail value)

18 approved covered slips $495,000 (net profit)

*$55,000 sale price assumption (larger) and $27,500 cost to construct

Type “C” covered stalls $990,000 (retail value)

18 approved covered slips $495,000 (net profit)

*$55,000 sale price assumption (larger) and $27,500 cost to construct

The Sanctuary at Costa Grande

Comparable Sales Data

Lot Sales Price Sale Date

Lot 259 Phase 2 $85,000 3-3-2017

Lot 178 Phase 2 $92,500 10-20-2016

Lot 281 Phase 2 $85,000 10-3-2016

Lot 307 Phase 1 $85,000 9-14-2016

Lot 287 Phase 2 $85,000 8-30-2016

Commercial Tracts Price Sale Date

12 acres $300,000 3-19-2015

Raw Land Price Sale Date

793 acres $2800 per acre 2-15-2017

Summary of Value

Existing Lot Inventory $6,534,400

Patio Home Site $616,900

Commercial Tracts $1,250,000

Undeveloped Land $509,150

Existing Wet Slips $1,680,000

Profit from Future Slips (pocket parks/96 total) $1,920,000

Profit from Future Slips (Marina type “G”/22 total) $440,000

Profit from Future Slips (Marina type “C”/36 total) $990,000

Total Summary of Value $13,940,450

Current Asking Price (Off Market) $6,995,000

*Any prospective purchaser will need to complete their own due diligence on this information. The assumptions made by the broker are to the best of my knowledge. Comparable sales on lot inventory, commercial tracts, and undeveloped land can be provided with a letter of intent (LOI) from any party.