POST OFFICE ADDRESS:

(MAILING ADDRESS)

901 SERVICE ROAD

EFFORT PA 18330

PROPERTY TAX # 2/14H/2/7

PROPERTY LOCATION

LOT 7 SECTION C-1,

BIRCH BRIER ESTATES

CHESTNUTHILL TOWNSHIP

MONROE COUNTY PA

This Information was taken from a portion the current Commercial appraisal produced on said property

AREA INFORMATION

The Subject property is located in northern ChestnuthillTownship, in southwestern MonroeCounty, in the Pocono region of northeastern Pennsylvania. As of 2000, MonroeCounty contained a population of 138,687, a healthy increase o 45% from its 1990 population of 95,709. And the estimated 2004 population of MonroeCounty was 158,925, indicating continued healthy increases. ChestnuthillTownship’s in 2000 was 14,418, representing a 64% increase over the 1990 population of 8,798, with the population continuing to grow rapidly. The neighboring/nearby Townships of Tunkhannock, Polk and Jackson have also had sizeable population increases over the same time period. The Subject property is roughly midway between the Allentown/Bethlehem/Easton metro area (population approaching 700,000), approximately 30 road miles to the south, and the Scranton/Wilkes Barre metro area (population of 600,000+), approximately 30 road miles to the north/northwest. Interstate 80 West is accessed via Route 115, approximately 9 miles northwest of the Subject, and I-80 East is accessed via route 715, approximately 10 miles east/northeast of the Subject. The Northeast Extension of the PA Turnpike is via I-80, to the north, and Route 209, to the south. Finally, route 115, 209 and 33 provide the quickest access to US 22 and I-78, to the south, servicing the Allentown/Bethlehem area. The Delaware River, separating Pennsylvania and New Jersey, is about 20 miles to the east via I-80.

The Monroe County/Pocono region has grown steadily in recent years, primarily due to the net in-migration of people from New Jersey and the New York metropolitan area.

The area has provided a lower cost alternative compared to very high cost northern New Jersey and New York City. Lower housing costs, taxes and insurance, combines with quality of life factors, have attracted a large number of residents from those areas, helping to feed the demand for continued new housing development in the area.

The economy of the Pocono region has also benefited from its attraction as a resort area, which is reflected in the large number of second and retirement homes, an the resultant demand for services. And the region has benefited from some settlement of New Yorkers looking for a “safe haven” area after 9/11. The
Wall Street West
project, a major office development under development in the Stroudsburg (MonroeCounty) area, is one outgrowth of this. And a significant number of people, in the Subject area, still conduct a lot of business in New York, since I-80 makes New York easily accessible. The continued population increases, indicated above, are also a reflection of this.

By far the largest employment sectors, in the region, are the Services and Retail Trade sectors. The largest single employer, in MonroeCounty, is the Tobyhanna Army Depot, with 3,200 employees, followed by Sanofi Pasteur (a vaccine manufacturing company), with 1,600 employees. However, after that, most of the significant employers involved education services, health services, retail trade, and the resort industry. The Mount Airy Lodge Resort, approximately 16 miles north/northeast of the Subject, has been approved for casino slot machines, the Pocono International Raceway is only 6 miles northwest of the Subject, off of route 115, and the Camelback ski resort is only about 10 miles

Northeast of the Subject. Within East Stroudsburg are two very significant employers and generators of economic activity, including EastStroudsburgUniversity, and 6,500 students and 825 employees, and PoconoMedicalCenter, with 1,122 employees.

From 1992 to 2000, MonroeCounty’s employment rate dropped from 9.8% to 5.3%. Since 2000, the unemployment rate has remained relatively steady, with a healthy downward bias, sometimes dipping below 4%, which is comparable to the region, state, and country. Median household and family incomes, in MonroeCounty, as of 2000, were slightly higher than that of Pennsylvania, as a whole.

MonroeCounty is well-serviced by major highways. Interstate-80 makes the whole region much more accessible and desirable to people and industry moving in from New Jersey (in particular) and the New York metropolitan area. It also permitted an easier commute to the many PA residents who work in New Jersey and Manhattan. In addition, I-380 makes the Scranton/Wilkes Barre area (metro area population of 600,000+) accessible within 40 minutes, and US 209 and Route 33 makes the Allentown/Bethlehem area (metro area population of 700,000+) accessible within 40 minutes, also.

Conclusion: The Subject area’s convenient access to I-80, making it within an easy drive to northern New Jersey and New York City, together with its small town/resort/rural atmosphere, bodes well for its long-term vitality.

Neighborhood

The Subject property is located along the Westside of Service road (for State Hwy. 115), just north of
Aldean Drive
, in northern ChestnuthillTownship, in southwestern MonroeCounty. It is roughly 6 miles north/northwest of Brodheadsville, a significant small town commercial center that has the major stores, schools, banks and municipal services, and where Route 115 intersects with US 209, and it’s approximately 9 miles southeast of Route 115’s interchange with I-80. The Pocono International Raceway is approximately 6 miles northwest of the Subject, on route 115.

The immediate Subject stretch of route 115 is somewhat rural in character, and has a mix of residential, commercial and auto service-oriented uses. An auto service repair facility is adjacent to the Subject, on its southside. Residential subdivisions can be found, set back from Route 115, on both sides. The PoconoMountain ridges rises to 1,883 feet above sea level, from approximately 1,200 feet above sea level at the Subject, on either side of Route 115, a short distance north of the Subject. More residential subdivisions are located on both sides of route 115, there, also.

Conclusion

The Subject neighborhood has been growing and steadily developing, in recent years, along with the rest of the county. This trend is anticipated to continue, barring an (as of yet) unforeseen downturn in the area economy.

PROPERTY DESCRIPTION

Site Description

The Subject site is located on the Westside of Service road (for State Hwy. 115), just north of Aldean Drive. The site is rectangular, in shape, and has frontage of 180 feet on Service road, with 242 feet of depth. The site has direct access to Service Road via one ingress/egress curb cut. The site contains exactly one acre. Or 43,560 square feet of area, and is identified as Tax PIN ID# 02-6330-01-47-0164. the Subject land to building ratio is 3.38.

The topography of the site is level to very slightly sloping down from north to south, with a natural gradient of only 9 feet over the 180 foot lot width. There are two gravel drainage pits in front of the site. Service Road is a two-way, asphalt paved road, with street lights, but with no storm drainage, sidewalks or curbing. Public electric, telephone and cable service the site. The Subject has a septic system in the back and a 300 foot deep well in the front. There is an asphalt paved parking area for 18 spaces on the site. The property is surrounded by grassy area and (deciduous tree) woods. To the best of our knowledge, there are no easements or encroachments that would have an adverse effect on the property.

According to the Federal emergency Management Agency, the Subject lies in an area with minimal flood risk.

Description of the Building Improvement

The Subject property consists of one two-store, wood-frame and steel clad commercial building, constructed in 1994. It comprises 12,800 square feet of gross building area, and is built on concrete slab. The overall condition of the building is excellent. The building has a 4” concrete slab for under the office section and a 6” concrete slab floor under the warehouse storage section. The exterior walls consist of light gauge corrugated steel over 2” x 6” wood stud framing and 6 ¼” insulation padding, with sprayed foam insulation along the bottom. The A-Frame roof consists of asphalt shingle over plywood, with gutter and four downspouts, along with an aluminum gable overhang. There are also exterior wall-mounted area lights. There is a double door, glass and steel frame main and a single door entrance leading to the retail and office areas of the building, on the parking lot side, and an exterior staircase leading to an exterior entrance onto the second floor on the other side of the building. The storage warehouse portion has a drive-in overhead door and two single exterior doors.

The first floor interior is comprised of approximately 50% (4,340 sq. ft.) finished retail and office space, and approximately 50% (4,340 sq. ft.) nearly finished storage warehouse space, with high ceilings. The second floor is comprised of approximately 4,200 sq. ft. of finished office space, currently being used for storage.

The ground floor finished retail/office space portion has vinyl tile flooring in the corridors and rest rooms and carpeted flooring in the retail areas and office suites/other rooms, all over a concrete slab floor. There are painted sheetrock walls and 8 foot suspended acoustical tile ceilings, with fluorescent lighting and vents for heat and AC, with an intercom system throughout, along with a smoke detector system. There are exterior double glazed, double hung windows throughout. There are two handicapped-approved public rest rooms with two fixtures each (one toilet and one sink), along with a private bathroom in the executive office suite. This section of the building contains a reception area/retail store, conference room two executive offices, a communications room, a computer room, a kitchen & snack room, and 6 other enclosed offices.

The second floor consists of one large open room, and as similar finished space (to that of the retail/office areas on the first floor), except that it has vinyl tile floor covering over luon and plywood, with painted sheetrock ceilings. It also has an attic. Access to the ground floor is via an interior custom oak staircase.

The storage warehouse portion, on the first floor, is nearly finished, except for the floor, which has an epoxy coating over the concrete slab. It is fully heated and air conditioned. It has painted sheetrock walls and an 18 foot painted sheetrock ceiling, with halogen lamps, radiant heat heat/AC vents and smoke detectors. It also has an exposed interior wooden stairs that leads to a small loft.

The building has 220 amp service, with 8 dedicated computer lines and 150 outlets, with outside security lighting and UTP Plenum-type 3 network phone cable. There are 5 electric package AC units on the outside of the building, and the building has forced air A/C throughout. Heat is supplied through a heating oil-fired boiler that supplies forced hot air throughout, with radiant heat included in the storage warehouse area. There is a 1,000 gallon exterior heating oil tank. Finally, there is a security alarm system, with motion detectors, inside the building, with outside cameras at each of the building’s four corners.

Conclusion: The quality and condition of the Subject building is excellent, and the building could have a number of different potential uses.