REAL ESTATE AUCTION

NO STARTING BIDS AND NO HIDDEN RESERVES!

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Common School Fund Properties

Elliott State Forest Land Sale
Douglas and Coos Counties, Oregon

OREGON DEPARTMENT OF STATE LANDS

East Hakki Ridge - 788 Acres

Benson Ridge - 355 Acres

Adams Ridge One - 310 Acres

Three coastal range timber and hunting tracts with excellent access from Highway 38 near Reedsport and Highway 101 by Coos Bay/North Bend

RESERVE PRICES START AT $595,000

Broker Cooperation Invited

SEALED BIDS DUE MARCH 28, 2014 CALL NOW FOR COLOR CATALOG #1401
Auction Conducted By:

REALTY MARKETING/NORTHWEST
522 S.W. 5th Ave., Suite 1250, Portland, OR 97204

1-800-845-3524

Reedsport

Dean Creek Elk Viewing Area Highway 38 Umpqua River Auction Property #100 East Hakki ELLIOTT STATE FOREST Auction Property #200 Benson Ridge Auction Property #300 Adams Ridge One
Properties to be Offered in Fall 2014 Auction

Winchester Bay

Scottsburg

Highway 101

Lakeside

Tenmile Lake

North Bend/Coos Bay

On December 10, 2013, the Oregon State Land Board authorized the sale of up to 2,728 acres of Common School Fund properties within the 93,000 acre Elliott State Forest, located along the Oregon Coast Range between the coastal communities of Reedsport and Coos Bay/North Bend. Revenue from the sale will be invested in the Common School Fund, to be distributed to Oregon K-12 public schools. The State Land Board is

comprised of Governor John Kitzhaber MD, State Treasurer Ted Wheeler, and Secretary of State Kate Brown. Realty Marketing/Northwest has been retained by the Oregon Department of State Lands to offer three of the five tracts designated for sale in a March 28, 2014 Sealed Bid Auction. The remaining two tracts, Adams Ridge Two and Adams Ridge Three, will be offered in a Fall 2014 Auction.

TIMBER PORTFOLIO SUMMARY*

NET VOLUME BY SPECIES BY TRACT Tract Size ( acres) 100 - East Hakki Ridge 788 200 - Benson Ridge 355 300 - Adams Ridge One 310 Total 1453 Volume by Species (Net MBF) WH SS WRC RA 176 14 91 538 61 63 293 37 10 230 176 274 87 321 1007 Total Net MBF 16,508 11,204 13,356 41,068

DF 15,555 10,774 12,747 39,076

OH 134 13 156 303

An estimated 95% of all volume is Douglas-fir, with the balance primarily a mix of western hemlock, Sitka spruce, western redcedar, red alder and other hardwood.
* Source: Northwest Forestery Services

ACRES BY AGE CLASS BY TRACT Tract Size ( acres) 100 - East Hakki Ridge 788 200 - Benson Ridge 355 300 - Adams Ridge One 310 Total 1453

25-30 173 38 211

Pre-Merch 31-35 36-40 41-45 156 37 16 10 99 19 13 175 60 115

46-50 89 89

Total PreMerch 471 109 70 650

Mature 98+ 298 239 234 771

East Hakki Ridge contains 72% of all the pre-merchantable stands with Benson Ridge having 86% of those stands in the 41 - 45 age class, which will be ready for harvest within 5 to 10 years. Adams Ridge has 23% of its land within pre-merchantable stands. ACREAGE AFFECTED BY MURRELET HABITAT Tract 100 - East Hakki Ridge 200 - Benson Ridge 300 - Adams Ridge One Total Size ( acres) 788 355 310 1453 Suitable Habitat ( acres) 298 219 235 752 Murrelet Buffer ( acres) 114 71 37 222 Forest Not Impacted ( acres) 357 58 33 448 RMA ( acres) 10 3 3 16 Roads ( acres) 9 4 2 15

The amount of forest not impacted has a direct relationship with the amount of the pre-merchantable age class acres. Please note that properties have not been surveyed for Marbled Murrelet.

Benson Ridge

East Hakki Ridge

All three properties have habitat suitable for Marbled Murrelet, which is protected by the Endangered Species Act (ESA). The timber appraisal conducted by Northwest Forestry Services used a model to both quantify suitability of habitat for each property, and to project a buffer which may be required for each property. This information is being provided to prospective bidders.

Overall, Northwest Forestry Services estimates that 752 acres of the lands, or 52%, contain habitat suitable to Mar- Evaluation of the impact on suitability of habitat and

bled Murrelet due to the 98 year old mature timber, and an additional 222 acres of the lands, or 15%, contain habitat suitable as Murrelet buffer. Some pre-commercial thinning and harvest activities may occur within the buffer. The balance of the lands, or 448 acres, are pre-merchantable stands not impacted by Marbled Murrelet habitat, and are projected to have up to 11 million board feet that will be ready to harvest within 20 to 25 years.

#100

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the pre-merchantable stands. In addition, the sale of these three properties has the restriction that log exports are prohibited to help support the domestic sawmill log market.

buffers for the Marbled Murrelet was used by the appraiser in establishing a discounted value to both the mature and pre-merchantable timber in order to reflect measured-risk to a new owner. A 90% discount was used to value the mature timber, and a 13% to 50% discount was used to value

Yachats

Monroe Harrisburg Junction City Coburg Veneta Eugene/Springfield Reedsport Creswell Cottage Grove

Florence Dunes City

#100

Reedsport Elkton Lakeside Drain Yoncalla Lakeside North Bend Coos Bay

#200 #300

ELLIOTT STATE FOREST

ELLIOTT STATE FOREST

Oakland Sutherlin

Roseburg Coquille Bandon Winston Myrtle Point Myrtle Creek Riddle Canyonville Powers Coos Bay North Bend

PUBLISHED RESERVE PRICES:

#100 East Hakki Ridge #200 Benson Ridge #300 Adams Ridge One 788 Acres 355 Acres 310 Acres
Broker Cooperation Invited

$1,820,000 $610,500 $595,000

FINANCING: None - All Cash

LAST ASKING PRICE: First Time Offered

SEALED BIDS DUE MARCH 28, 2014 CALL NOW FOR COLOR CATALOG #1401
Auction Conducted By:

REALTY MARKETING/NORTHWEST
522 S.W. 5th Ave., Suite 1250, Portland, OR 97204

1-800-845-3524