Kimberton Crossing Investment Summary

I am pleased to present an opportunity to invest in an exciting new mixed-use development which
includes both a senior living community and a townhome development project in the fastest
growing area of suburban Philadelphia in Chester County, Phoenixville, Pennsylvania. We are
highly selective when undertaking land entitlement projects and I am pleased to offer you an
opportunity to invest in our next project.

Endeavor Property Group (“EPG”) has executed an agreement of sale with the C. Raymond Davis
Company (“CRD”) to acquire approximately 18-acres of vacant ground adjacent to their
headquarters building in Kimberton, Chester County, Pennsylvania. This agreement follows a
lengthy negotiation with CRD over the past two years providing for attractive business and
contractual terms that significantly mitigate risk in this transaction. EPG has been actively
involved with CRD and this property for those last few years overseeing a complex township wide
re-zoning process that very positively impacted this property.

Township officials anticipating the development of this important highly visible property worked
cooperatively with our team to ensure the re-zoning accomplished our mutual objectives.

History and Background

CRD is a well-regarded mid-size general contractor that has owned this land since 1946
and has operated their general contracting business from their headquarters building
located on an adjacent property. CRD has recently transitioned ownership of the business
to the next generation and the younger team determined that a sale of the vacant parcel
made good sense for the company.

While our involvement required a significant investment of time and resources, we felt the
longer-term benefits were worth the investment. EPG negotiated a Purchase and Sales
Contract based on the prior zoning which protected us from the immediate increase in value
that occurred upon the successful re-zoning.


Like past successful entitlement projects, including Riverview, undertaken by EPG we
have assembled a first-tier team of professionals with vast experience in the region and
specifically within the municipality of East Pikeland Township, Chester County,
Pennsylvania.

Due to our investment over the last several years we have significantly mitigated the risk
in securing the Final Plan Approvals. Securing the Final Plan Approvals is a critical
milestone that will establish significant appreciation in the property and allow the
partnership to monetize the land profit at that time.

While significant value is achieved through the entitlement process, we also appreciate the
difficulty in securing these development approvals and consequently the opportunity to
create even greater value through the actual development of the project. Realizing that
development involves a greater amount of risk we have designed this investment offering
to allow for interested investors to elect whether to remain involved in the actual
development or alternatively exit the land entitlement partnership upon Final Plan
Approvals. This decision will be left entirely to the individual investor.

CRD has agreed to serve as our General Contractor Partner to provide very specific and
detailed pricing of all phases of the project. This is particularly helpful when we are asked
to make modifications during the entitlement phase of the project which is inevitable based
on past experiences. CRD will provide these services at no cost to the partnership in
exchange for being the GC and overseeing a traditional three bid open book development
bid process prior to starting the development phase of the project.

Development Plan

Our team has developed a mixed-use plan that includes a senior rental apartment building
that could include independent, assisted living and memory care apartments units, a small
retail building as well as a townhome community that is suitable for a broad range of buyers
from first time younger families all the way to empty nesters.

We analyzed both residential sectors and found a shortage of supply in both housing
sectors. The retail market along Pike Springs Road (Route 113) is well occupied and expect
interest from a variety of single or multi building tenants for this location.

Residential housing Sector

The Chester County housing market is the fastest growing suburban housing market in the
Philadelphia Region. According to a recent study released by Michael Diggin of REMax
Town and Country Real Estate for May 2020 he reported the following market statistics.



 620 pending home sales in May which was 130% higher than April 2020 but
significantly below May 2019 by 26%.
 Median sale price increased to $393,500 which was an increase of 8.5% over 2019.
 Year over year inventory has dropped from 2,141 units to 1,768 for a decrease of
17%.
 New listing of 754 homes in May versus 1,124 a year prior representing a drop of
33% further reducing the supply of home inventory.
 Current homes under contract of 620 which is 26% lower than a year ago.
 Average Days on Market (DOM) was 44 versus 49 for a 5-year average.
 Total inventory represents a staggering low 3 months’ supply.

Our expected target price range ($490,000 - $550,000) represents a continually active price
range for both first time and move-up buyers. Further, the ability for developers to secure
entitlements continues to be difficult thereby keeping supply well below demand which
should continue to provide for a Seller’s market for the foreseeable future.

Sales activity within nearby developments known as Pickering Creek and Atwater confirm
strong interest in townhomes in this market.

Pickering Creek which is a nearly completed sub-division of 76 homes had 14 homes sell
during the past year including 6 new homes and 8 resales. The average days on market
were 97 which is above the market average. Median sales price was $549,950.

Atwater development consists of approximately 600 townhomes, villas and single-family
residences and is significantly built and sold. Homes were selling at a pace of 10-14 homes
per month prior to the start of Covid-19.

Senior Housing Market Sector - Aging National and Pennsylvania Population

The Baby Boomer Generation consists of thirty (30%) percent of the US population or
approximately 75 million people ranging in age from 55 to 73. Currently and expected for
the next 10 years 10,000 people a day will reach the age of 65 in the U.S.

Numerous studies have been developed in recent years detailing the impact the Boomer
Generation will have on the country and specifically the housing needs of this significant
generation. Following are just a few of the compelling statistics that support our focus on
senior housing;

 Over the next five years, the U.S. population age 75 and older is expected to
increase by 21 percent, adding 4.7 million seniors to the prospective pool of seniors
housing residents. This is nearly double the 2.6 million 75-plus year-old seniors
added over the last five years.

 States with the highest current number of residents who are over 65 include
California (5.5 million), Florida (4.2 million), Texas (3.5 million), New York (3.2
million) and Pennsylvania (2.3 million).

 The population age 65 and over has increased from 37.8 million in 2007 to 50.9
million in 2017 (a 34% increase) and is projected to reach 94.7 million in 2060.

 By 2040, there will be about 80.8 million older persons, over twice their number in
2000. People age 65 and over, represented 15.6% of the population in the year 2017

but are expected to grow to be 21.6% of the population by 2040. The 85 and over
population is projected to more than double from 6.5 million in 2017 to 14.4 million
in 2040 (a 123% increase).

The Boomer generation is seeking a more independent oriented lifestyle and will demand
residences and amenities that most existing senior housing developments do not offer
resulting in greater demand for the newly designed senior living communities like
Kimberton Crossing.

Investment Opportunity

Endeavor has finalized negotiations with C. Raymond Davis Company (“CRD”) on terms
for the acquisition of an eighteen (18) acre parcel of ground that has been recently re-zoned
to allow for several uses including senior housing, townhomes as well as office and retail.

We have executed a Purchase and Sale Agreement with a purchase price of $3,000,000 or
approximately $167,000 per acre. This price is below comparable land sites of $250,000
per acre ($4,500,000) based on the current zoning.

This below market price provides significant downside protection for the equity investor.
We are raising equity to fund 100% of the budgeted pre-development expenses of
$1,500,000. This pre-development capital will be deployed by our team to secure final
building permits to allow for the construction to commence in late 2021.

This pre-development capital will result in a fully approved, designed and engineered
project. This approval process is expected to take between 18-24 months based on our
experience with similar type projects in the region.

Once fully entitled and approved we project the land value on our “Expected” case to be
worth $7,220,000 or approximately $401,000 per acre. We have also valued each phase of
the project when arriving at the total value of $7,220,000 which is included in Section 11
of the attached Offering Memorandum.


During the initial 3-4 month period following the formation of the Partnership we will
discuss the opportunity with a short-list of nationally recognized senior living operators, as
well as joint venture partners to structure either an outright sale of the approved ground or
a partnership to develop the senior rental community, both of which would provide a re-
capitalization of the ground allowing the equity investors an option to liquidate their
investment and cash out, or alternatively, leave the appreciated land equity investment in
the future development of the senior community.

We will then conduct a short bid process to narrow the group to our preferred partner and
commence negotiations regarding both a management contract as well as a potential joint
venture investment from the operating partner to further align interests. At a minimum we
will insist that the operating partner make a significant equity investment into the project.

We will also contact various developers regarding the townhome lots and the retail building
to determine whether to sell or develop those parcels ourselves.

Our base case assumes a 24-month entitlement period followed by a recapitalization
leading to an IRR of 37.20% and an equity multiple of 2.02x.

Risk Mitigation Factors

EPG has undertaken numerous re-zoning and entitlement projects with similar attributes to
this project and believe this experience places EPG in a strong position to evaluate the
potential risk and opportunity associated with the project. EPG is confident the following
factors will mitigate risk for the Equity Investor (s) in this transaction;

I. The township (East Pikeland) decided on their own to revise their zoning
code in certain areas of the township to encourage development (including
our property) while discouraging development in other parts of the township
which is a clear indicator of their support for this development.

II. EPG has been directly involved assisting ownership through the township
wide re-zoning process including engaging professionals to carefully
review the zoning changes and, in many instances, provided revisions to
ensure that our intended development was as “By-Right” and code
compliant as possible.

III. In exchange for our involvement prior to the re-zoning we successfully
negotiated the land acquisition price for the land based on the prior zoning
providing an immediate appreciation in land value for ourselves and this
partnership once the re-zoning was adopted.


IV. A thorough Phase 1 and Phase 2 investigation was undertaken due to the
existence of a former Superfund site located across Cold Springs Road.
This neighboring industrial property was investigated back in 1983 and
determined to have been responsible for the release of volatile organic
compounds (“VOC’s) into the groundwater. The site was thoroughly
investigated and remediated between 1983 and 1993.

However, due to the continued presence of VOC’s in the groundwater a
pump and treat system was installed in 1993 to monitor and continue to
remove the remaining VOC’s which continues today. The contaminated
plume was controlled in 1993, however low levels of the VOC’s remain in
the groundwater and require a long period of time to be fully attenuated.

Our environmental consultant has concluded that while there is no impact
on our future development since the levels fall below the residential
standard established by the EPA and most importantly since the project will
be served by public water. We may also, in the abundance of caution,
conclude that a vapor barrier should be installed underneath the buildings
as an extra layer of protection.

Should we determine that a vapor barrier is advisable then the adjacent
property owner is responsible, based on court order, for the cost of vapor
barrier installation.

V. A mixed-use development involves a variety of uses (sources of revenue)
that provides the ability to capitalize on different market sectors. While the
senior rental and the market rate townhome communities are
complimentary, they appeal to very different market segments and therefore
allow both phases to be developed simultaneously thereby decreasing the
time period required to monetize each phase of the partnership.

VI. EPG has secured two six-month extensions following the initial eighteen
(18) month approval period to secure any final approvals still outstanding
with modest additional deposits of $25,000 per extension, which will be
applied to the purchase price.

VII. EPG will utilize a team of third-party professionals including land-use
counsel, engineer, and many other consultants that have been involved in
multiple approvals within this same township.


VIII. The Township has overly strict “natural features” code requirements from
which we will be seeking relief. The Township has previously granted
similar relief so we are reasonably confident we will be granted the same
relief.

IX. Pennsylvania has high barriers to entry which keeps supply and demand in

balance, making overbuilding very difficult.

In summary, EPG having completed eight (8) comparable land entitlement projects in recent years
is confident that the pre-development budget is conservative, and the development plan is well-
designed for the property and the market.

We are seeking a total equity investment of One Million Five Hundred Thousand ($1,500,000.00)
Dollars with a minimum investment of Three Hundred Thousand ($300,000.00) Dollars.

We have a included a detailed Offering Memorandum on the property for your review and would
welcome the opportunity to discuss the project further should you have further interest.

Very Truly Yours,


Peter H. Monaghan
Principal