Welcome to the

1

• Welcome to the
• Wonderful World of
• Sheldon Good Company

2
COMPANY BACKGROUND

• Private company founded in 1965.
• Sold over 40,000 properties valued in excess
  of 8 billion.
• Auction leadership- Rated 1 in industry by
  Forbes, New York Magazine and Crain's Chicago
  Business.
• Employees -400-500 (including independent
  contractors).
• Headquartered in Chicago, Illinois with
  offices in Denver, Colorado New York, New
  York Houston, Texas

3

• US, CANADA, CARRIBEAN, MEXICO, CENTRAL SOUTH
  AMERICA
• SPOT JOBS LATIN AMERICA, WESTERN EUROPE

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EndorsementsAmerica Community Bankers CoreNet
Global FIABCI NAR Urban Land Institute
Wall Street Journal
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INTRODUCTION

• Properties that Lend Themselves to Auction
• Why Auction?
• Auction Methodology
• Case Studies
• Non Residential
• Residential

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70 ASSET CLASSES HANDLED
Corporate Retreats Churches Synagogues Jails Polic
e Stations Fire Stations Sanitary Improvement
Districts City Halls Exotic Game
Farms Performing, Sub-Performing Non-Performing
Loans Leases Subleases Parks Private
Lakes Timberland
Motels Resorts Marinas Golf Courses Hunting
Retreats Fishing Lodges Private
Islands Dock-o-miniums Ski Resorts Mountains Gold
Mines Mineral Rights Office Buildings Apartment
Buildings Commercial Buildings Strip Shopping
CentersRegional Shopping CentersFreezer Cooler
Buildings
Special Purpose Properties Trucking
Terminals Airports Movie Theatres Bowling
Alleys Private Clubs Restaurants Bars Nightclubs I
ndustrial Warehouse Buildings Industrial
Manufacturing Buildings Industrial and Office
Parks Developable Air RightsRetail
Buildings Libraries Elementary SchoolsHigh
Schools College Campuses
Houses Townhouses Mansions Estates Condominiums Co
-ops Timeshares Interval Ownership
Homes Homesites Subdivisions Development Land Raw
Land Large AcreagesFarmland RanchesHotels
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TYPES OF PROPERTIES THAT LEND THEMSELVES TO
AUCTION
User Properties
Investor Properties

• Industrial
• Commercial
• Office Buildings

• Apartments
• Shopping Centers
• Net Leased Commercial Properties
• Rental Housing

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TYPES OF PROPERTIES THAT LEND THEMSELVES TO
AUCTION
9
TYPES OF PROPERTIES THAT LEND THEMSELVES TO
AUCTION
Residential

• Houses
• Condominiums
• Townhomes
• Coops
• Trophy Estate Properties

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TYPES OF PROPERTIES THAT LEND THEMSELVES TO
AUCTION
Condominiums
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TYPES OF PROPERTIES THAT LEND THEMSELVES TO
AUCTION
Trophy Estate Homes
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TYPES OF PROPERTIES THAT LEND THEMSELVES TO
AUCTION
Trophy Estate Homes
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AUCTION CANDIDATE PROFILE

• Not easily valued
• Seller wants to control deal structure
• Seller wants to maximize value
• Seller wants to control timeline
• Seller wants an accelerated sale program
• Bidding in the alternative desired

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REAL ESTATE AUCTION ADVANTAGE

• Auctions establish value
• Auctions freeze conventional activity
• Focuses market attention
• Eliminates carrying costs
• Auctions create a deadline
• Drives immediate action
• Establishes atmosphere of excitement
• competition competitive bidding
• Establishes no maximum price
• Seller can construct the desired deal

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AUCTION FORMATS

• Open Outcry
• Sealed Bid
• Sealed Bid Convertible

AUCTION STRATEGIES/DEAL STRUCTURE

• Without Reserve Auction/No Minimum-Absolute
  Auction
• Without Reserve Auction/Subject to a Minimum
  Bid
• With Reserve-Seller reserves to the right to
  accept or reject final bid up to a set price

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AUCTION METHODOLGY

• Steps
• Analyze Property
• Analyze Market
• Local
• Local and Regional
• Local, Regional, National
• Local, Regional, National International
• Determine Costs of Getting to Market
• Methodology
• Marketing
• Advertisements
• Signage
• Radio and TV Ads
• Direct Mail
• Broker Solicitation

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AUCTION METHODOLGY

• Methodology Cont.
• Showings
• Pre-designated Showing Dates
• Private Appointments
• Development of Materials
• Real Estate Sales Contracts
• Financial Information
• Other Materials
• Phase I Environmental
• Title of Report
• Terms of Auction

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AUCTION METHODOLGY

• Methodology Cont.
• Conducting the Auction
• Registration
• Answering of Any Questions
• Collection of Earnest Money
• Conduct of Bidding
• Signing of Contract
• Post Auction Functions
• Arrange Financing
• Coordinate Closing

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TIMELINE

We recommend a high profile aggressive marketing
program to identify the entire universe of
potential buyers. We will implement a
comprehensive marketing plan to reach the target
market utilizing the following
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ASSET LENDING CATEGORIES
Hotels/Motels - Major Flag Hotels/Motels -
Other Restaurants/Bars/Nightclubs Developable
Land Harvestable Timberland Mineral Farmland Ranc
hes Golf Courses Raw Land
Office/Commercial - Leased Office/Commercial -
Empty Industrial Warehouse Industrial
Manufacturing Industrial/Office Park Strip
Shopping Center Regional Shopping Center Retail
Building
Single Family House - Normal Single Family House
- Trophy Single Family House - Vacation Single
Townhouse Multiple TownhousesCondo/Coop Timeshare
/Interval OwnershipHomesite
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WHY SHELDON GOOD FINANCIAL SERVICES?

• Custom tailored loan structure
• Defer all interest and fees to loan payoff if
  desired
• Flexible term and paydown options
• Secured by real estate and non-real estate
  assets
• Start from client-centric wish list
• Provide more availability than traditional
  lenders
• Our heritage in real estate and auction
  capabilities give us the confidence to offer
  more capital
• Best service in the industry
• We measure progress in days, hours and minutes
• Tough to get term sheet because we expect to
  close
• Tight process and control
• Uncommon integrity, honesty, quality and
  professionalism

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LENDING CRITERIA AND STRUCTURE
Lending Criteria

• Will consider virtually any real estate class,
  especially difficult-to-value real estate
• Target 50 - 70 loan to value (LTV) ratio based
  on Sheldon Good Company opinion of real
  estate value, actual LTV will depend on many
  issues including asset class
• Minimum size target loan 1 million
• Maximum size target loan None
• Length of loan term 6 - 24 months
• Rate and fees Vary depending on specific loan
  structure and assets

• Start from a client-centric wish list and
  create customized structure to meet each
  clients needs
• No covenants on underlying business cash flow or
  earnings

Structure
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PAST OFFICE/COMMERCIAL, INDUSTRIAL WAREHOUSE,
INDUSTRIAL, MANUFACTURING, STRIP SHOPPING CENTER,
REGIONAL SHOPPING CENTER RETAIL BUILDING
PROPERTIES
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PAST LAND, GOLF COURSES, FARMLAND, RANCHES,
DEVELOPABLE, HARVESTABLE PROPERTIES
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PAST COMMERCIAL PROPRTIES
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PAST HOSPITALITY PROPERTIES
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150 Commerce Rd, Cedar Grove, NJModern 53,760
Sq. Ft. Office Building on 8.04 AcresExpansion
Allowed to 117,000 Sq. Ft.
Marketing Program- Local Regional

• Budget 55,000
• Time Frame 6 Weeks
• Style Open Outcry/Stand Alone

Results
Minimum Bid 3,275,000

• Sold for 4.3 million
• Purchased by user/non-profit

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National Investment Property Portfolio
SaleOrlando, Winter ParkLongwood
Jacksonville, Florida 4 Highly Profitable
Commercial Properties All 100 leased with
regional and national tenants Combined net
operating income 1.1 million Target sale price
13 million Sale price at auction 15 million
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Eatontown, New Jersey 401 Industrial Way West,
Eatontown, NJ140,000 Sq. Ft. Class A Industrial
Building
Marketing Program- Local, Regional National

• Budget 55,000
• Buy Back 5,000
• Time Frame 60 days sold/90 days closed

Results

• Open Outcry/Multiple Seller
• Opening Bid 3.3 million
• Sold 4.5 million pre-auction
• Met deadline of year-end sale requirement
• Identified new user which 1 1/2 years of
  conventional marketing did not surface
• Price exceeded sellers expectations

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4100 West Fullerton, Chicago, Illinois4 Story,
380,000 sq. ft. Industrial BuildingVacant-
Manufacturing Use
Marketing Program- Local Regional

• Budget 50,000
• Time Frame 90 Days
• Style Sealed Bid

Results

• Open Outcry/Multiple Seller
• Sold for 4.5 million
• Seller leased back 100,000 Sq. Ft. for five year
  term
• Sold to Phoenix, Arizona based company

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MACARTHUR TRUSTBARRINGTON HILLS, ILLINOIS
Seller Macarthur Trust Description
Divisible 430 Acre Development
Site Location Barrington Hills,
Illinois Auction Strategy Sealed
Bid Marketing Program Local, Regional
National Result Sold for 5,700,000
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Hewlett Packard6877 Goreway Drive,Mississauga,
OntarioFormer Hewlett Packard 98,300 Sq. Ft.
Headquarters

• Difficult to Value
• Uncertain Market Situation

Marketing Program-Local Regional

• Budget 50,000
• Buy Back 5,000
• Time Frame 6 Weeks
• Style Open Outcry

brochure
Results

• 100 Inquiries/30 Inspections
• Sold 200 over Opening Bid
• Results exceeded projected value
• Quality program, marketed on a expedited basis
  for logical reason

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Hewlett Packard, Ontario, Canada 6877 Goreway
DriveMississauga, OntarioFormer Hewlett Packard
98,300 Sq. Ft. Headquarters
SAMPLE ADS
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IBM Three-Building Office ComplexMonmouth
Junction Culver RoadsSouth Brunswick, New
JerseyIn Campus Like Setting351,000 Sq. Ft. on
66.24 AcresLease Operating Income 2.184 million
Marketing Program- Local, Regional National

• Budget 85,000
• Check required to bid 500,000
• Time Frame 90 days
• Style Sealed Bid

Results

• Opening bid 5 million
• Sold for 10 million to publicly traded REIT
• Environmental issues arose which were
  successfully negotiated

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ALCOA 15 Properties located in 8 states 6
Manufacturing/ Warehouse Facilities 9 Vacant Land
Parcels Result 14 of 15 Properties Sold Local,
Regional, National International Buyers
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ALCOA 15 Properties located in 8 states 6
Manufacturing/ Warehouse Facilities 9 Vacant Land
Parcels
Results 14 of 15 properties sold within
parameters set for the entire portfolio Portfolio
Value 20 Million
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ALCOA 11.1 Acre Redevelopment Site55 Tower
Rd.Newton, Massachusetts Style of Auction
Sealed Bid Scope of Marketing Local,
Regional National Appraised Value 12.85
Million Sales Price 12.98 Million Percent of
Appraisal 101
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ALCOA 92,260 Square Foot IndustrialBuilding on
20 Acres3785 Graham DriveFairburn,
Georgia Style of Auction Open Outcry Scope of
Marketing Local, Regional
National Appraised Value 1.335 Million Sales
Price 1.512 Million Percent of
Appraisal 113
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ALCOA 87 Acre Development SiteRoute 6Morris,
Illinois Style of Auction Sealed BidParts
against the whole Scope of Marketing Local,
Regional Appraised Value/OPV 410,000/337,000
459,000/374,000 Sales Price 330,000/410,000
Percent of Appraisal 80/99 89/110
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NEWELL RUBBERMAID 8 Properties located in 5
states Manufacturing, Warehouse and Distribution
Facilities Result 5 of 8 Properties Sold
3 Under Contract Local, Regional
National Buyers
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NEWELL RUBBERMAID 8 Properties located in 5
states Manufacturing, Warehouse and Distribution
Facilities
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203 Room Ramada InnElgin, Illinois

• Auction Style Reserve

Results

• Suggested Opening Bid 1,500,000
• Met Life would have sold for 2,200,000
• Sold for 3,622,500

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2 Charleston Area Championship Golf Courses
Crowfield Golf Country ClubGoose Neck, South
Carolina15 x EBITDA, a public daily fee course
rated in top 5 courses in Charleston areaPine
Forest Country ClubSummerville, South
Carolina10 x EBITDA, a private course

Marketing Program Local, Regional, National
Results

• Open Outcry
• Sold Crowfield 3.025 million
• Sold Pine Forest 1.750 million

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River Links Golf CourseSpring Hill,
TennesseeAdjacent to Deer Creek residential
development, this course opened its first 9
holes with remaining 9 holes under construction.
(environmental suit pending by State of Tennessee)

Marketing Program Local, Regional, National
Results

• Open Outcry
• Sold for 1.25 million

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45 Commercial Properties Landsites in IL, IN
WI
Former Development Gas Station Sites-8 Acre
Parcels
Marketing Program-Local, Regional National

• Signage
• Advertising
• 7500 Marketing Cards mailed
• Brochures -4000 (12 Page)
• Detailed Property Information Sheet
• Press Releases
• Articles
• Call Back Program
• Cold Call Canvassing
• Street Canvassing
• Bidders Information Packages
• Purchase and Sale Agreements

Market Response
700 Calls in 220 cities
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Results

• Number of Properties Offered 45Removed from
  Sale by Amoco because of new Environmental
  concerns 4
• Available for Sale at Auction 41
• Sold Auction Day 36
• Sold Auction Day 87.7
• Post Auction Properties Available 5
• Post Auction Properties Sold 3

TOTAL PROPERTIES SOLD 39 PERCENTAGE OF TOTAL
PROPERTIES SOLD 95 GROSS SALES
(approx) 4,500,000
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PAST RESIDENTIAL PROPERTIES
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PAST MULTIPLE RESIDENCE PROPERTIES
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Trump Plaza of the Palm BeachesPalm Beach,
Florida
88 units including 17 townhouses Selling prices
ranged between 250,000 1.5 million Local,
Regional, National International
Marketing Simulcasts in Palm Beach Gardens,
Chicago New York 2000 parties inspected the
property 75 day marketing program Sell-out at 19
million
50
Trump Plaza of the Palm BeachesPalm Beach,
Florida
88 units including 17 townhouses Selling prices
ranged between 250,000 1.5 million Local,
Regional, National International
Marketing Simulcasts in Palm Beach Gardens,
Chicago New York 2000 parties inspected the
property 75 day marketing program Sell-out at 19
million
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The Pinnacle at Deer ValleyDeer Valley, Utah
Nation marketing promotional campaign to reach
regionally isolated buyers. To control
availability in the markets of uncertain
depth. 20 units offered 32 sold 3 city
simulcast 1,100 bidders 100 from simulcast
cities 5 offered Absolute 13 Sold Absolute Total
sales 8,368
52
Lionshead Estate Tredyffrin Township, Chester
County, Pennsylvania
Suburban South Philadelphia estate with
dramatic over-improvements done to the residence
in comparison to community. During marketing,
the residence was still under construction and
would require over 1 million to
complete. Regional Marketing Eight
Weeks Eleven Bidders Sold For 1,942,500
53
Centre Island Lodge Lake of the Woods, Ontario,
Canada A completely private thirty-acre island,
in the middle of Lake of the Woods. The 5,500
sq.ft. lodge was designed to provide the perfect
union between luxurious amenities, rugged outdoor
lifestyles and northwoods serenity.
54
Red Oak FarmOxford, Maryland
Red Oak Farm is the fully realized vision of a
modern, luxurious gentlemans farm and equestrian
estate. It includes 300 Sq. Ft. of waterfront on
a 161 acre compound. The Main Home is 6,300 Sq.
Ft. The Guest Residence is 2,300 Sq. Ft. Also
included is Trainers Residence and Stables Sold
Pre-Auction for 3,000,000
55
Ellicott City, MarylandGaither Farm Rd
The ultimate union of classic and contemporary
architecture, the estate situated on 5.43 acres
at 11055 Gaither Farm Rd is a dream fully
realized the pinnacle of style, class, and
ultra-sophisticated country living. 15,137 Sq.
Ft. Custom Home Local, Regional Limited
National Marketing Outcry/Dutch Auction Sold For
2,580,000
56
Redstone CastleRedstone, Colorado
The historic castle and stable complex, set
against the pristine wooded forests of the Aspen
Valley and along the Crystal River, offers an
enchanting ambiance for its residents. Sold 2
times- 1st Auction was Traditional Auction sold
with Reserve-Sold for 5,000,000 2nd Auction was
a Dutch Auction-Sold for 6,300,000
57
Chastellux174 East Lake RoadTuxedo Park, New
York
Only 45 minutes from Manhattan, this 42 room,
20,000 Sq. Ft. mansion is nestled among the
secluded and exclusive community of Tuxedo Park.
National Marketing Eight Weeks Open Out-Cry
Reserve Part of Multiple Owner/Multiple Property
Auction Sold for 2,572,500
58
Kings Point, New York This unique home was
designed by a well known Architect. The property
had been vacant for a period of time prior and
was offered on the conventional real estate
market for three years.
This home was used as a prototype for Dr.
Fantastics house from the comic book series The
Fantastic Four. Regional Marketing Seven
Weeks Open Outcry Reserve
59
120 East 78th StreetNew York, New York Designed
for renowned architectural firm of Delano
Aldrich in 1929 this 8 level townhome is grand
living in the genre of early elegance. Sold for
4,980,500
60
Eagle Springs LodgeSolitude, Utah(Park City,
Deer Valley, Canyons, Brighton, Alta Snowbird
Resort Area) 32 One, Two and Three Bedroom
Condominiums Priced from 299,900 to 799,900 10
to be Sold AbsoluteOpening Bids from
100,000 Auction Date Saturday, February 26th
61
The Umbrella HouseLido Key, Florida(Sarasota
Area) Rated by Architectural Digest (France) as
on of the top five most architecturally
significant in the world-Paul Rudolf
(Architect) Minimum Bid 1.2 million Auction
Date Wednesday, February 23rd
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63

CHAPTER 2 SO YOU SAY YOU WANT TO SELL A
THOUSAND HOUSES?
CHAPTER 3 ART DECO HOTELS GO ON THE BLOCK
GLAMOROUS LIFESTYLE INCLUDED?
CHAPTER 4 EVER WANTED YOUR OWN GOLD MINE?
CHAPTER 5 NOTHING BUT NET
CHAPTER 6 NEED A GENTLY USED CHURCH?
CHAPTER 7 THE WORLD IS OUR STAGE
CHAPTER 8 UN-UNITED HOMES
CHAPTER 11 THE MAN BEHIND THE CURTAIN
CHAPTER 10 SCHOOLYARD FOR SALE
CHAPTER 9 THE JAILHOUSE ROCKED
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NEWELL RUBBERMAID 8 Properties located in 5
states Manufacturing, Warehouse and Distribution
Facilities