SURFSIDE INVESTMENT PORTFOLIO

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1 SURFSIDE INVESTMENT PORTFOLIO MARCH 2015 FINANCIAL OVERVIEW + ANALYSIS MIAMI BEACH, FLORIDA The information contained herein was furnished to us by sources, which we deem reliable, but no warranty or representation is made to the accuracy thereof. Subject to correction of errors, omissions, change of price, prior sale or withdrawal without notice.

2 TABLE OF CONTENTS I. II. PROPERTY DESCRIPTION III. IV. & COMPARABLES FOREIGN INVESTORS CONTACT John Turchin, Designer/Developer Phone: ext. 2 JTurchin@TurchinServer.com John Rhem, Executive Assistant Phone: ext. 4 John.Rhem@TurchinProperties.com (USA) Martina Hajkova Formanek, Realtor Phone: ext Martina@TurchinProperties.com *The information contained herein was furnished to us by sources, which we deem reliable, but no warranty or representation is made to the accuracy thereof. Subject to correction of errors, omissions, change of price, prior sale or withdrawal without notice.

3 Our concept is to diversify our investments and our risks by purchasing ten 2,500 Sq Ft single family homes located in the Surfside community of Miami Beach. We then plan to renovate each with high-end finishes and features that will be competitive in price with the local condo market. By targeting smaller homes, we will reach a larger target market than that of considerably larger and more expensive homes currently for sale which will provide a better cash flow through the rental and sale of a more marketable product. The Turchin Companies plans to purchase these ten single family homes at an average of $650,000 per home and renovate each for an average of $500,000. We will then sell each home for an average of $2,000,000 [$800/Sq Ft] for a gross profit of $850,000 per home. The process takes 12 months per home with the total to ten homes being completed in 24 months by starting renovations on one home every month. After the ten homes are completed, we can expect a gross profit of nearly $8,500,000. JOHN TURCHIN DESIGNER / DEVELOPER The Turchin Companies is a dynamic organization, headed by 3rd generation designer/developer John Turchin, specializing in the fields of construction and development, design and consulting, luxury real estate sales and marketing, property management, alternative energies, and more. The Turchin Companies started out in construction in South Florida in 1927 and over the following decades built a well-deserved reputation as one of the premiere development companies in the state. The Turchin Companies is credited with building most of the high rises in Miami Beach according to the Miami Herald. Turchin has grown a reputation as not just a creator of incredible properties, but more importantly as a creator of extraordinary lifestyles. John is proud to sit on the City of Miami Beach Design Review Board and has held an unlimited General Contractor s License in South Florida since License#: CGC The Turchin Companies is currently involved in a variety of projects throughout the Southeast.

4 TARGET MARKET With the development of cutting-edge, intelligent, smart, and healthy homes, we plan to tap into a large pool of prospective buyers who are searching for affordable homes on Miami Beach outside of the traditional condominium market. We have focused these buyers into three specific groups: Baby-Boomers: The product we are creating will be ideal for many baby-boomers looking to downsize into a smaller home who would like to continue to enjoy the luxury and high-end features of a single family home they are accustomed to. Our product is a direct alternative to the traditional condominium allowing for little or no restrictions, freedom, and flexibility while remaining within walking distance to the beach, shopping, and restaurants. Our homes also have more storage than a typical condo, not to mention no restrictions on a pet that may already be part of the family. Additionally, the surplus cash from the sale of their current home after purchasing one of ours could be invested into a retirement fund... an attractive option for many boomers. Starter Families & Professionals: There are many young families and working professionals who want to live on the beach but would prefer owning a single family home. With larger homes out of their price range, our product is large enough to accommodate those individuals at an affordable price point filling a growing void in the market. We also offer a product that eliminates the extra HOA fees that come with the traditional condominium. Foreign Investors: With our product offering more flexibility than a condo and remaining less expensive than larger homes on Miami Beach, foreign investors will find this opportunity attractive because of the minimal investment. A single family home also offers more stability in changing economy not found with condominium. EQUITY INVESTMENT In order of us to pursue this opportunity we are seeking funding from an equity partner to invest 30% of the total development cost to secure the properties. We will seek an institutional loan for the additional 70% of funds required to purchase and develop these properties. For this 30% investment, the equity partner will be paid a 60% promote [60% share of the profit earned.] The equity partner will be paid back from sales proceeds after all costs and loans have been paid. Profit and remaining cash will then be shared among investors on a 60%-40% split and in accordance with the investor s agreement. [See Financial Analysis for more details on development costs.]

5 ABOUT THE TOWN OF SURFSIDE The Town of Surfside is a beautiful oceanfront community located in the tropical paradise of South Florida. Incorporated in 1935, the Town is home to approximately 5,800 residents and includes a tranquil and attractive residential neighborhood, multi-family condominium and apartment buildings, a traditional home town business district as well as tourist facilities that welcomes visitors year round. All of the homes, condominiums, hotels and resorts in Surfside are within walking distance of world class shopping, fantastic public beaches, a number of public parks, playgrounds, tennis courts, and recreational facilities including a new Community Center and Aquatics Facility. As a place to live, or as a destination for visitors of all ages, Surfside is amongst the world s best places to be. Surfside has earned a truly superb reputation as a family community and destination, offering a wide range of accommodations, resort facilities, shopping opportunities and leisure activities. Surfside is also within easy range of all of South Florida s world renowned attractions. Surfside is also close to the excitement and action of South Beach, to downtown Miami, to Oleta State Park, Haulover Park and Beach, North Shore Open Space Park, area golf courses, marinas with rental boating and fishing expeditions, and to all area seaports and airports. SURFSIDE BAL HARBOUR INDIAN CREEK The Town of Surfside encompasses the area from 87th Terrace to 96th Street, and it is situated between the City of Miami Beach to the South and the Village of Bal Harbour to the North. ATLANTIC OCEAN NORTH BEACH MIAMI BEACH SOUTH BEACH NORMANDY ISLES BISCAYNE BAY NORTH BAY VILLAGE DOWNTOWN MIAMI

6 FINANCIAL ANALYSIS Our concept is to purchase ten properties in the Surfside community averaging 5,900 Sq Ft each. Upon acquisition, we plan to build 10 homes in a phased plan each with 2,500 Sq Ft to compy with local zoning (40% lot coverave for the first floor and 50% of first floor for the second floor.) We then intend to sell each home for an average of $800 per Sq Ft for net sales proceeds of $18,800,000. After expenses, we expect a projected net profit of $7,450,000. Based off a 30% initial investment, the equity parter will receive 60% of the net profit, nearly $4.5M, calculating an ROI of 131%. PROJECT PRO-FORM CALCULATED WITH GROSS SALES AT $800 PER SQFT USE OF FUNDS Item Qty Unit Cost Total Acquisition 10 $ 650, $ 6,500, Construction Buildout 2,500 SqFt $ Per SqFt 10 $ 375, $ 3,750, Professional Fees 10 $ 50, $ 500, Interest Reserves 5% APR for 1 Year 10 $ 60, $ 600, Total Projected Investment Cost $ 1,135, $ 11,350, Source of Funds 30% Equity Investment 10 $ 340, $ 3,405, % Institutional Loan 10 $ 794, $ 7,945, Total Source of Funding for Project $ 1,135, $ 11,350, Sales Proceeds Home Sales 2,500 SqFt at $ Per SqFt 10 $ 2,000, $ 20,000, Less Sales Commissions 6% 10 $ (120,000.00) $ (1,200,000.00) Net Sales Proceeds $ 1,880, $ 18,800, Costs Acquisition 10 $ 650, $ 6,500, Construction Buildout 2,500 SqFt $ Per SqFt 10 $ 375, $ 3,750, Professional Fees 10 $ 50, $ 500, Interest Reserves 5% APR for 1 Year 10 $ 60, $ 600, Total Projected Investment Cost $ 1,135, $ 11,350, $ - Projected Net Profit $ 745, $ 7,450, Turchin Share of Profit 40% $ 298, $ 2,980, Investor Share Of Profit 60% $ 447, $ 4,470, Investor's ROI Based On Their Equity Investment 131%

7 There are currently 23 homes for sale in the Surfside community. (Right) We have identified twelve of the most attractive properties that offer the largest margin of return Dickens Avenue Price: $575,000 Lot Sq Ft: 5, th Street Price: $595,000 Lot Sq Ft: 6, Froude Avenue Price: $625,000 Lot Sq Ft: 5, Carlyle Avenue Price: $625,000 Lot Sq Ft: 5, Dickens Avenue Price: $649,000 Lot Sq Ft: 5, Abbott Avenue Price: $650,000 Lot Sq Ft: 5, Abbott Avenue Price: $679,900 Lot Sq Ft: 5, Emerson Avenue Price: $699,000 Lot Sq Ft: 5, Emerson Avenue Price: $719,000 Lot Sq Ft: 5, Emerson Avenue Price: $759,000 Lot Sq Ft: 5, Dickens Avenue Price: $765,000 Lot Sq Ft: 5, Abbott Avenue Price: $769,000 Lot Sq Ft: 5,600 MLS # ADDRESS LIST PRICE BED'S BATH'S HB SQFT YB SUBDIVISION LOT SQFT POOL? WF? A BISCAYA DR $ 6,600, , NORMANDY BEACH 2ND AMD & 15,000 Y Y A BAY DR $ 4,295, , ALTOS DEL MAR NO 5 9,630 Y Y A BISCAYA DR $ 3,950, , NORMANDY 2ND AMD & REV 9,750 Y Y A BAY DR $ 3,199, , ALTOS DEL MAR NO 5 9,270 N Y A BAY DR $ 2,199, , ALTOS DEL MAR NO 5 11,700 N Y A BYRON AV $ 999, , ALTOS DEL MAR NO 6 9,677 N N F ABBOTT AVE $ 995, , ALTOS DEL MAR NO 4 5,600 N N A ABBOTT AV $ 850, , ALTOS DEL MAR NO 5 5,650 Y N A EMERSON AV $ 839, , NORMANDY BEACH 2ND AMD PL 5,600 N N R Dickens Av $ 799, , ALTOS DEL MAR NO 4 N N A ABBOTT AV $ 769, , NORMANDY BEACH 2ND AMD PL 5,600 N N A DICKENS AV $ 765, , ALTOS DEL MAR NO 4 5,600 N N A EMERSON AV $ 759, , ALTOS DEL MAR NO 5 5,600 N N F EMERSON AVE $ 719, SEAWAY 50 N N A EMERSON AV $ 699, , ALTOS DEL MAR 5,600 N N A ABBOTT AV $ 679, , ALTOS DEL MAR NO 1,860 N N A ABBOTT AV $ 650, , ALTOS DEL MAR NO 6 5,600 N N A DICKENS AV $ 649, , ALTOS DEL MAR NO 5 5,600 N N A CARLYLE AV $ 625, , ALTOS DEL MAR NO 4 5,600 N N A FROUDE AV $ 625, , ALTOS DEL MAR NO 4 5,600 N N F ST $ 595, , ALTOS DEL MAR NO 4 6,160 N N A DICKENS AV $ 575, , ALTOS DEL MAR NO 5 5,600 N N A ABBOTT AV $ 507, , SECOND AMD PLAT OF NORMAN 5,000 N N