154+ acres in the Piney Woods Region with frontage on the end of County Road 1205. It features a rolling topography with over 800’ of frontage on the Pinkston Reservoir (Pinkston Lake). With an almost perfect blend of 50% wooded with pines and hardwoods and 50% pasture, the property offers a tremendous range of fauna in a great ecosystem.

The majority of the land consists of a sand and loam soil combination providing an excellent setting for crops, equestrian or cattle (the owner indicates it can easily support 100 head) and other agricultural pursuits.

The property presents an ideal setting for a combined poultry, cattle and hay production operation.

No minerals convey. Shelby County does not have zoning ordinances.

HIGHLIGHTS

(1) 4.72% proforma cap rate, $132 cash flow based on $51,122 net operating income with an 80% loan amortized over 20 years.

(2) 4 breeder houses with 62,400 SF; 5,393 SF of shops, barns and sheds; 1,290 SF main residence with additional 1,204 SF of decks and an in-ground pool; mobile home and various improvements with an estimated replacement value of almost $1,000,000.

(3) May be eligible for SBA or Farm Service Agency (FSA) loans depending on qualifications, terms, plan and other factors.

(4) Located 1 mile from Texas Highway 7, it affords privacy and tranquility while only 11 miles from Center, the Shelby County Seat with excellent services for a community of its size.

(5) Stable economy growing at projected 4.8% annual rate through 2013 primarily supported by oil & gas, timber and poultry industries.

(6) Excellent regional proximity: 23 mi. from Nacogdoches, 50 mi. from Lufkin, 74 mi. from Coushatta, 85 mi. from Shreveport, 147 mi. from Alexandria and 164 mi. from Houston.

(7) Low taxes with 2009 estimated taxes of $2,078.

CONTACT INFORMATION

Call 979.421.9996 to contact any member of the listing team to set up an appointment, request additional information or answer any questions.

IMPROVEMENTS

(1) Four Breeder Houses. 62,400 SF steel truss frame with metal roof buildings. Each has auto nests, egg cooers and ventilated tunnels. Two of the breeder houses are 14,000 SF each (40’ by 350’) built in 1989. Two are 17,200 SF each (40’ by 430’) built in 1995. All breeder houses are considered in average condition for their age. We estimate replacement cost of the breeder houses residence and related improvements approximately $800,000.

(2) Shop, Barn and Storage Sheds. 5,393 SF of additional space supports the business. It includes: (a) 2,400 SF metal barn with cement and dirt floors with 5 horse stalls and staging areas; (b) 900 SF steel frame shop with a metal roof and cement floor; (c) 1,600 SF pasture storage wood shed with metal roof and dirt floor; (d) 493 SF manufactured home with a room addition gutted to provide maximum storage. We estimate replacement cost of approximately $50,000.

(3) Support Improvements. (a) 75KW self-contained generator with 55 gallon-above ground diesel tank in a concrete slab shed. (b) Burn-Easy diesel fired unit of steel & concrete construction with 2 burn chambers. (c) 350’ deep water well and septic system. (d) Cement load out pads. (e) Extensive interior gravel roads about 7 years old in good-condition. We estimate replacement cost of approximately $40,000.

(4) Main Residence. Average + condition currently occupied by property owners. It was built in several phases and the original build date is not known. It offers 1,290 SF of HVAC space substantially expanded with an additional 1,207 SF of decks providing 2,497 of combined usable SF. The main residence is a traditional frame with cedar exterior on a pier and beam foundation. It is a 3 bedroom and 1 bath configuration. Includes an in-ground pool and 2 storage sheds with 224 SF total. The roof and water heater were replaced in 2008, a new dishwasher and carpeting were installed in 2006. The house was rewired and re-plumbed in 1994. We estimate replacement cost including related improvements approximately $100,000.

(5) Manufactured Home. 781 SF 2 bedroom, 1 bath home on a concrete block foundation built in 1984 in fair condition. Enhanced with a 96 SF covered porch. Currently occupied by contractors involved in the business. We estimate replacement cost including related improvements approximately $25,000.

BUSINESS

The business provides breeder stock under contract to Tyson Foods. Tyson currently operates a regional processing plant in Center, Texas approximately 8 miles northeast of the property.

PROFORMA 4.72% CAP RATE, $132 CASH FLOW & $51,122 NOI

Note that this proforma utilizes the list price of $ 1,082,082 for the entire 154+ acres as the required debt service. We estimate that less than 17% of the acreage is related to the breed stock business and the remaining 128+/- acres have other potential uses.

(1) Transaction and Accounting Assumptions. List price of $1,082,082 with a down payment of 20%. 2 points in closing costs to buyer. 15 year depreciation schedule. 5 year amortization. 15% capital gain rate and 35% effective personal tax rate.

(2) Financing Assumptions. 80% loan to value/list price conforming loan. 20 year amortization schedule. 6.5% interest fixed for first 5 years. 2 points (2% of sale price) in closing costs to buyer. $77,450.04 annual debt service for first 5 years

The following summarizes the basis for proforma revenues and operating expenses:

(3) $180,453 Revenues. The average of 2005 through 2007 reported to the IRS is $163,676. We increased the result by 5% to estimate 2008 revenues. We increased 2008 by 5% to estimate 2009 revenues.

(4) $95,761 Historical Operating Expense Categories. Other than real estate taxes, the proforma utilized 2007 operating expenses reported to IRS with adjustments as noted:

(a) $1,529 real estate taxes. 2008 taxes reported increased by 10%.

(b) $4,712 feed. $4,284 reported increased by 10%.

(c) $301 fertilizer. $265 reported increased by 25%.

(d) $4,563 fuel. $3,650 reported increased by 25%.

(e) $3,516 insurance excluding health insurance. $3,196 reported increased by 10%.

(f) $5,895 labor excluding contracted labor. $5,359 reported increased by 10%.

(g) $420 supplies. $382 reported increased by 10%.

(h) $26,005 repairs and maintenance. $23,641 reported increased by 10%.

(i) $21,637 utilities. $18,031 reported increased by 20%.

(j) $441 veterinary related. $401 reported increased by 10%.

(k) $26,741 contract labor. $24,310 reported increased by 10%.

(5) $33,023 Operating Expense in New Categories. Our proforma modeling is based on a standardized investor model that includes following two additional operating expense categories: (a) $24,000 owner management salary; and $9,023 capital reserve (based on 5% of proforma $180,453 operating income).

(6) Sales Proceeds after Tax. $251,742 + $2,424 at end of three years. $304,482 at end of 5 years. 2% annual valuation increase. 8% sale expenses at close. 0% participation payment on sale.

LOCATION

(1) Located 1 mile from Texas Highway 7, it affords privacy and tranquility while only 11 miles from Center, Texas. Center, the Shelby County Seat, has an economy growing at projected 4.8% annual rate through 2013.

(2) The County economy is primarily supported by oil & gas, timber and poultry industries.

(3) Center boasts Shelby Regional Medical Center; a junior college; many restaurants and eateries including major franchises demonstrating the local economy viability including McDonalds, Sonic, Dairy Queen and Pizza Hut; and excellent regional proximity.

(4) Diverse regional proximity: 23 mi. from Nacogdoches, 50 mi. from Lufkin,74 mi. from Coushatta, 85 mi. from Shreveport, 147 from Alexandria and164 mi. from Houston.

(5) Commercial air service is available at Lufkin Regional (53 mi.), Longview Regional (70 mi.), Shreveport Regional (81 mi.), Tyler Pounds Field (119 mi.) and Houston Intercontinental (152 mi).

(6) Great interstate highway access: 47 mi. from I 49, 62 mi. from I 20 and 118 mi. from I 45.

DEMOGRAPHICS AND ECONOMETRICS

(1) At a 3-mile radius, from 2008 to 2013 annual population growth is 1.8 times higher than Center and Shelby County and average household consumer spending growth is 30% higher than Center and 16% higher than Shelby County.

(2) From 2008 to 2013, Shelby County is expected to experience rapid growth in affluence as measured by annual growth in percent of households with high average annual incomes. (a)Families with at least $100K in annual incomes are projected to grow 26% annually; (b) with at least $150K in annual incomes are projected to grow 22% annually; and (c) with least $250K in annual incomes are projected to grow 47% annually!

(3) Shelby County’s employee base is well diversified. 29% of employed residents are in service related businesses, 26% are in manufacturing (this includes poultry processing), and 17% are in retail with the remaining 27% allocated across 7 other broad categories all at 6% or less.

(4) Compared to the 8 adjacent Counties and Parishes*, Shelby County is ranked # 1 in projected annual percent population growth.

*Panola County, Caddo Parish, De Soto Parish, Sabine Parish, Sabine County, San Augustine County, Nacogdoches County and Rusk County.

TAXES

2008 reported taxes on the entire property are $2,077.65. We increased 2008 by 10% to estimate 2009 for the entire property at $2,285.41.

The property is currently agricultural exempt. Consult your tax advisor regarding your expected taxes.

GRAPHIC ANALYSIS

The following graphics and analysis sets in downloadable PDF sets are available on most professional websites including our site, LoopNet, Lands of America, Commercial Gateway and CBC Worldwide:

(1) Highlights

(2) Pictures

(3) Satellites, topographics and plats

(4) Proforma consumer level

(5) Proforma professional summary

(6) Maps, driving distances & driving times

(7) Greater market* demographic & econometric analysis summary table

(8) Greater market* demographic & econometric analysis

(9) City of Center workplace & employment analysis

(10) Shelby County workplace & employment analysis

(11) Adjacent Counties/Parishes demographic & econometric analysis summary table

(12) Adjacent Counties/parishes demographic & econometric analysis

(13) Downloadable PDF sets, available Claritas reports and web links

* “Greater market” includes: 1-mile, 3-mile & 5-mile radiuses, 75935 zip code, City of Center and Shelby County.

528 Claritas reports utilized in this analysis available upon written request.

DISCLOSURES & COPYRIGHTS

Coldwell Banker Commercial Southwest Partners is a wholly owned franchise of Alexander Tiffany Southwest, LLC. Analysis is preliminary, based on proprietary systems and models, is time sensitive and based on assumptions-stated and unstated. Graphics are only renderings. Measurements are only estimates. No warranties are expressed or implied. All content is protected by copyright laws, is only for prospects or legal representatives, and should not replace buyers own due diligence and analysis. Any other use is prohibited.