Location: The property is located approximately two (2) miles west of the I-27/Woodrow Road exit, just three (3) blocks south of Woodrow Road (County Road 7600) on County Road 2040 in southern Lubbock County, Texas. The acreage is generally bounded on the east by County Road 2040 and merger of South Indiana Avenue and the west by future Quaker Avenue extension. The property is conveniently located to downtown, I-27, and 25 minutes from the Lubbock International Airport (LBB).

Site: The site consists of a single tax parcel containing a total of 108.16 acres (Source: LCAD). The site is further divided by use into an approximate 45 acre canyon ("Canyon" or "Art Canyon"), along with approximately 63 acres of contiguous acreage immediately south and west of the Canyon which is currently planted in dry-land cotton (2015 crop).

Access to the Canyon is provided via remote controlled gate immediately off of County Road 2040

The farmland is located immediately south of the Canyon and is also accessed via County Road 2040

Google Earth Map

Historic and Current Uses: The entire 108.13 acre parcel was historically utilized as agricultural farmland. An approximate 45 acre section (Canyon) was utilized for approximately 50 years for excavation of caliche materials, supplying building materials to build roads throughout West Texas. This portion has since been reclaimed from excavation activity. Since acquiring the property, the current owners have invested significant time, effort and funds to restore the former excavation site (Canyon) to its native habitat, utilizing the dramatic relief and landscape features resulting from excavation. Over the past decade, Art Canyon has been the beneficiary of a multi-year program of improvement grants from the Texas Parks and Wildlife to restore the property's native grassland, vegetation and landscape, including three natural catch basin ponds, thereby promoting the habitation of hundreds of species of native wildlife.

The Canyon is no longer restricted, bound or otherwise encumbered with any remaining obligation to continue any of the aforementioned conservation activity(s), however an opportunity exists for continued conservation improvement(s) with the State of Texas or other agencies for native habitat re-introduction to the Property, as well as other programs to match funds for a variety of native restoration programs. To date, the Seller has brought in over 2,800 tons of topsoil to provide an enriched environment for fauna and flora. They currently receive topsoil on a regular basis for future projects. New owners could negotiate the continuation or to discontinue addition of new topsoil.

The adjacent farmland is currently leased to a farm tenant and is currently planted in the 2015 season's grain sorghum crop.

Improvements: The Art Canyon is improved with an approximate 1,000 sf building which was constructed by the Seller in 2007 to be utilized as a private weekend retreat to enjoy the serene setting within the Canyon and its unlimited recreational attributes. The building is commonly known as the "Casita" and is situated centrally along the northern property boundary with strategic views of the Canyon. The building is a single story, steel frame building on concrete slab with metal roof. The Casita is a modern metal frame design with a wood inner structure consistent of home construction. The walls and roof are insulated and makes the Casita very efficient in all types of weather. The Casita is complete with an open concept kitchen (w/island stations)/great room/dining room and additional studio room, all with clerestory and screened windows to take advantage of the Canyon views and breeze.

The kitchen, bath, and additional studio room have sinks with slab granite counter tops. There is a sleeping loft with Canyon views, as well as complete lavatory, bathroom and shower, with an additional enclosed outdoor shower. The studio room has a 10' overhead garage door to accommodate a golf cart or ATV. Other amenities include a fireplace, central heat/air, water softener, alarm system, sound system looped with TV and speakers for the exterior wrap-around porch. The building is equipped with a fire alarm system, however, does not have a water supplied fire suppression system (sprinkler).

Outdoors, the Casita is aesthetically accented with perennial flowerbeds, flagstone patio with fire pit and small accent pond. The building's slab on grade foundation serves as a concrete, wrap around skirt with a metal roof overhang to provide a covered porch on the front and both sides. An additional third covered porch area has been recently built off the studio room.

A network of caliche roads run throughout the Canyon. Ample parking is available around the Casita as well as a large parking area adjacent to an Event Field. The Event Field (roughly the size of a football field) provides endless possibilities for field sports, musical performances with tiered seating as well as level ground for multiple event tents for dining and celebrations with electrical supply nearby. There is a metal railroad container car for tractor and equipment storage. Also included with the Property is a vintage, enclosed former weigh station trailer with wooden floor that could be moved/refurbished and used as a cabana or rustic guest space or storage near the fishpond.

Possible long-term improvement and use for the Canyon and surrounding 63 acres include a combination of the following amenities, features, and services to develop a unique community and Event Center in a beautiful, natural setting:

State of the art Energy Efficient housing

Walking trails with sculpture gardens featuring life-size sculptures of West Texas wildlife and arboretum for native Texas plant life

Organic / Holistic healing arts center

Organic Garden / Market / Restaurants

Activities Field (over an acre), Stadium Seating

Amphitheater

Event center for private and community gatherings, celebrations of music, sports, weddings, events, reunions, meetings, etc.

Additional income producing casitas which relate to the above development

Utilities/Water: The Canyon is served by all underground electrical power, including multiple new additional transformer stations installed by the Seller for future building sites. The Casita is served by a domestic water well and septic system which were installed new at construction in 2007. Current ownership has installed an irrigation network fed by the domestic well which runs on an east/west loop of the Canyon and provides for distribution of water for water to trees, grasslands, and vegetation, as well as pond water supplement and oxygen re-charge, and other general irrigation needs within the Canyon. There are timed, regulated water stations strategically placed throughout the Canyon. The system is designed for the easy addition of new watering regions.

Farmland: The approximate 63 acres of adjoining farmland is currently leased to a farm operator and planted in grain sorghum (2015's crop season). This farm lease is an unwritten, unrecorded crop share agreement between the Seller and the farm tenant. The Seller has obtained an Estoppel Certificate from the farm tenant. This crop share agreement (lease) will expire on the earliest to occur of i) the conclusion of the 2015 grain sorghum harvest, and ii) 12/31/2015. Any proceeds, profits, or expenses from the current farm lease will be retained by the Seller.

An opportunity exists for a Prospective Bidder (Buyer) to negotiate a new farm lease with the current farm tenant if the new owner and tenant are so inclined. There are no known irrigation wells located on the farmland.

TERMS

SALE FORMAT AND PROCESS

The Property is being offered via online only auction subject to Seller's stated Minimum Bid price. On behalf of the Seller, Auction Markets, LLC ("Markets") will be soliciting non-contingent, final bids from prospective bidders (the "Prospective Bidders") for the purchase of the Property pursuant to the schedule outlined herein and in conjunction with the Seller, has assembled materials (the "Due Diligence Materials") that will be made available prior to commencement of the online auction to Prospective Bidders that have registered, and have executed and are subject to the terms of, a Confidentiality Agreement (the "Confidentiality Agreement"). To REGISTER call Clay (415) 717-0077. The Confidentiality Agreement can be executed online at the Auction Markets website.

Due Diligence Materials will be provided to Prospective Bidders via Markets' online, virtual due diligence room ("Data Room"). Such information may include Property or Asset Summaries, property operating statements or information, appraisals, physical condition reports, environmental studies, or other reports or information. Included in the Due Diligence Materials will be comprehensive bidding instructions, the terms of sale and the Seller's required form of agreement for purchase and sale of the Property (the "Auction Purchase and Sale Agreement"). Upon Seller's selection and acceptance of a Winning Bidder's bid, the successful bidder will be required to immediately execute the Auction Purchase and Sale Agreement accompanied by a 10% nonrefundable earnest money deposit in immediately verifiable funds (wire transfer). Pursuant to the Purchase and Sale Agreement, the Seller is selling the Property subject only to those representations and warranties explicitly stated in the Purchase and Sale Agreement. No other representations or warranties, either expressed or implied, shall apply. Prospective Bidders must register and execute the Confidentiality Agreement in order to be given access to the Due Diligence Materials prior to commencement of the online auction. Once completed and approved, Prospective Bidders will be able to access the Due Diligence Materials and submit online, non-contingent bids in accordance with the proposed schedule below.

SCHEDULE

The anticipated schedule for the Online Property Auction is outlined below and is subject to change:

Distribution of Auction Summary, Bidder Registration Begins: Wednesday, July 1, 2015

Availability of Virtual Data Room (Due Diligence Material) Begins: Wednesday, July 1, 2015

Online Bidding Begins: Tuesday, July 21, 2015

Online Auction Ends: Thursday, July 23, 2015

High Bidder Confirmation: Thursday, July 23, 2015

High Bidder Electronically Signs Contract/PSA: Friday, July 24, 2015

High Bidder Provides Proof of Funds to Auction Markets: Friday, July 24, 2015

10% Non-Refundable Earnest Money Deposit Due: Friday, July 24, 2015

Seller Consideration Period Ends: Wednesday, July 29, 2015

Seller Decision Announced: Wednesday, July 29, 2015

CLOSING DATE: Friday, August 7, 2015

No Prospective Bidder shall contact the Seller, Property Management, Tenants, or affiliates of any of these parties. Prospective Bidders are required to strictly adhere to the terms of the Confidentiality Agreement.

Disclaimer:

THE SELLER RESERVES THE RIGHT, AT ITS SOLE AND ABSOLUTE DISCRETION, TO WITHDRAW THE PROPERTY FROM THE AUCTION AT ANY TIME. THIS SUMMARY HAS BEEN PREPARED TO ASSIST THE RECIPIENT IN DECIDING WHETHER TO PROCEED WITH FURTHER INVESTIGATION OF THE OPPORTUNITY TO BID AT THE AUCTION. WHILE THE INFORMATION INCLUDED HEREIN IS BELIEVED TO BE ACCURATE AND RELIABLE, NEITHER OF THE SELLER, BROKER, AUCTIONEER OR ANY OF THEIR RESPECTIVE SUBSIDIARIES, AFFILIATES, AGENTS, ASSIGNEES, OFFICERS, TRUSTEES, DIRECTORS, SERVICERS OR EMPLOYEES MAKE ANY REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, AS TO THE ACCURACY OR COMPLETENESS OF SUCH INFORMATION, INCLUDING BUT NOT LIMITED TO THE VALIDITY OR PRIORITY OF ANY LIENS AND THE VALUE OF THE PROPERTY COLLATERAL. ONLY THOSE REPRESENTATIONS AND WARRANTIES THAT ARE MADE BY THE SELLER TO A PURCHASER IN A DEFINITIVE, EXECUTED PURCHASE AND SALE AGREEMENT SHALL HAVE ANY LEGAL EFFECT.

Presented by: Stephen Karbelk, Auction Markets, LLC, Licensed Texas Auctioneer #16641 in cooperation with Cindy Snell, S.E.C., Real Estate Agent, Westar Commercial Realty, LLC, Broker of Record, #529621