DOWNTOWN EVERETT DEVELOPMENT ASSEMBLAGE

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1 Rick Lapinksi DOWNTOWN EVERETT DEVELOPMENT ASSEMBLAGE Everett, WA 98201

2 'RZQWRZQ(YHUHWW'HYHORSPHQW $VVHPEODJH INVESTMENT SUMMARY,QYHVWPHQW2YHUYLHZ 5HJLRQDO0DS EXCLUSIVELY MARKETED BY : John L Scott Rick Lapinksi ULFNODSLQVNL#\DKRRFRP AREA OVERVIEW /RFDO0DS &LW\2YHUYLHZ &RXQW\2YHUYLHZ $HULDO0DS PROPERTY DESCRIPTION 3URSHUW\'HWDLOV '0DS FINANCIALS 2IIHULQJ6XPPDU\ 1HW,QFRPH6WDWPHQW 7HQDQW3URILOHV 5HQW5ROO /HDVH$EVWUDFWV 3UHSDUHG)RU Rick Lapinski John L Scott

3 Dev Site

4 Everett Townhomes Site Plan 11

5 Copy of Everett Townhomes Pro Forma

6 Thorsen topo

7 Price $4,500,000 Cap Rate 3.82% NOI $172, Occupancy 93.10% Building Size 28,981 SF Land Area 79,362 SF Ownership Fee Simple Investment Highlights This is a rare opportunity to acquire a very large assemblage of the downtown core. The 3 tenants on the property have been there for 25+ years and would be willing to continue tenancy, this would afford a buyer stable rental income until a development is underway. Many entitlement in place with pre-development council included in sale.

8 Regional Map

9 Plaza Marketing Bros

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26 Local Map Area Overview

27 Area Overview City Overview - Everett The City of Everett's downtown core is a peninsula surrounded by water and mountains on 3 sides, it has the highest natural amenity density in Washington. Everett's western boarder is Port Gardner Bay and Puget Sound, with views of the Olympic Mountain Range. A skilled fisherman can catch multiple species of salmon, halibut, Dungeness crab and spot prawns all in the same day, and all within view of Everett's downtown. The view of the Olympic Mountains on a sunny February day leaves a permanent memory. To the north is the mouth of the Snohomish River and its estuary, this is where the Snohomish River blends with the salt water of Puget Sound in a uniquely rare and accessible environment. Everett's eastern boarder is the main stem of the Snohomish River and the Cascade Mountain Range. The Snohomish River is the culmination of many tributaries that originate in the Cascade foothills, it offers many verities of sporting and water-sports, all within eyesight of downtown Everett. The Everett peninsula is crowned lengthwise in the center, from its center crown, it slopes to the east and west to the shores that define its boundary. Everett is in the beginning of a major re-gentrification, foreseen opportunities will be like a nice winter day. district on the edge of the Puget Sound.Everett s city center has emerged as a regional destination with boutique retail shops, restaurants, cultural attractions, anda world class events center, Xfinity Arena. More exciting changes are on the horizon, including over 600 new apartmentunits, two new hotels, a year-around farmers market, and the growing presence of Washington State Univerisiy nearby.everett is home to the largest public marina on the west coast of the United States and is the western terminus of the western segment of U.S. Route 2. It is also home to Boeing s assembly plant for the 747, 767, 777, and the new 787 in the largest building in the world by volume at million cubic feet Downtown Everett s Xfinity Arena draws over 700,000 visitors per year.other major attractions include the Schack Arts Center, ImagineChildren s Museum, Village Theater, and Everett Public Library, whichcollectively welcome over 1 million visitors annually. Downtown Everett is compact and highly walkable - the city received awalk score of 95%. Foot traffic is heavy in the downtown core. Downtown Everett boasts easy access to Highway 2 and Interstate 5.Everett Station, a transportation center near downtown, o ers local,regional and express buses as well as trains, shuttles, taxis andpark-and-ride facilities. The nearby Port of Everett is the largestcontinuous marina on the west coast. Downtown Everett is the employment, cultural, and entertainment hubof the Northern Puget Sound region. Live theater, a growing art andmusic scene, hockey, baseball, and a myriad of restaurants define thedowntown Everett experience as distinctively urban. Everett Highlights Decades of revitalization e orts have created a walkable, vibrant, mixed-use Area Overview

28 Aerial Map Area Overview

29 Property Details Address Additional Zoning Everett Washington, Retail, Industrial, Office, Mixed-use Square Footage 28,981 SF Land Area 79,362 SF Year Built 1972 Year Renovated 2001 Site Zoning CI, R3-H Number of Buildings 3 Number of Stories 1 Property Description

30 Financial Offering Summary Price $4,500,000 Building Size 28,981 SF Land Area 79,362 SF Number of Suites/Spaces 4 Number of Stories 1 Year Built 1972 Occupancy 93.10% Down Payment $0 Interest Rate 4.25% Amortization Period 25 Years Annual Payment $219,404 Notes: Creative financing potential Price per Square Foot $ CAP Rate 3.82% Pro Forma Cap Rate 4.78% NOI $172,089 Pro Forma NOI $215,181 Financing Loan Type New/Proposed Loan Amount $3,375,000 Financials

31 Net Income Statement Current Annual Income Proforma Annual Income REVENUES Gross Potential Rent $249,708 $266,400 Less: Current Vacancy 26,400 0 Effective Scheduled Rent 223, ,400 Effective Gross Income $223,308 $266,400 OPERATING EXPENSES Real Estate Taxes 41,819 41,819 Insurance 9,400 9,400 TOTAL EXPENSES $51,219 $51,219 NET OPERATING INCOME $172,089 $215,181 Debt Service $219,404 $219,404 NET CASH FLOW AFTER DEBT SERVICE $-47,315 $-4,223 Principal Reduction $77,464 $77,464 TOTAL RETURN 0.00% 0.00% Expenses Per SF $1.77 $1.77 % of EGR 22.94% 19.23% Financials

32 Tenant Profiles Logo Tenant Name Description Other Information Centeral Body Works Everett Washington collision and auto body repair facility is centrally located in Snohomish County. We serve many clients from the Stanwood, Camano Island, Arlington, Smokey Point, Darrington, Granite Falls, Marysvillle, Monroe, Mukilteo, Edmonds, Lynnwood, Mill Creek, Mountlake Terrace and surrounding Puget Sound communities. New and Again Domestic Violence Services is a non-profit organization serving Snohomish County since We are the only program in Snohomish County providing emergency shelter and comprehensive, confidential services to all victims of domestic abuse. Domestic Violence Services provides individual and community awareness programs. UNION 76 Gas station and C-store Financials

33 Rent Roll Lease Terms Rental Rates Suite Tenant Name SF % of Bldg Start End Begin Monthly PSF Annually PSF Lease Type Market PSF/Yr T.I.s Admin LL Responsibilities Centeral Body Works 15, % Feb-2012 Mar-2017 Current $6,700 $0.43 $80,400 $5.15 NNN $8.96 None Jan-2017 $6,901 $0.44 $82,812 $5.30 Option 1 60 Months Apr-2017 Mar-2022 Apr-2017 $7,108 $0.45 $85,296 $5.46 Tenant may relocate "A" Vacant 2, % Vacant $2,200 $1.10 $26,400 $13.20 NNN $0.00 Nov $2,266 $1.13 $27,192 $ Rucker Ave New and Again 8, % Jun-2015 May-2016 Current $4,031 $0.50 $48,372 $6.03 NNN $0.00 None Nov $4,152 $0.52 $49,823 $ Rucker Ave UNION 76 3, % Nov-2006 Oct-2016 Current $7,878 $2.36 $94,536 $28.30 NNN $29.93 Feb-2016 $8,114 $2.43 $97,372 $29.14 Financials

34 Centeral Body Works Tenant Address Suite Rentable Square Feet Centeral Body Works Everett ,624 SF Lease Term 5 year Lease Commencement Feb 01, 2012 Lease Expiration Mar 31, 2017 Lease Type NNN Annual Rent $80,400 Rent Increases Changes On Changes To Jan-2017 $82,812 Options Option 1 Duration - 60 Months Changes On Changes To Apr-2017 $85,296 Landlord Responsibilities None Tenant Description Everett Washington collision and auto body repair facility is centrally located in Snohomish County. We serve many clients from the Stanwood, Camano Island, Arlington, Smokey Point, Darrington, Granite Falls, Marysvillle, Monroe, Mukilteo, Edmonds, Lynnwood, Mill Creek, Mountlake Terrace and surrounding Puget Sound communities. Financials

35 New and Again Tenant Address Suite Rentable Square Feet New and Again Everett Rucker Ave 8,016 SF Lease Term Year to ye Lease Commencement Jun 01, 2015 Lease Expiration May 31, 2016 Lease Type NNN Annual Rent $48,372 Rent Increases Changes On Changes To Nov $49,823 Landlord Responsibilities None Tenant Description Domestic Violence Services is a non-profit organization serving Snohomish County since We are the only program in Snohomish County providing emergency shelter and comprehensive, confidential services to all victims of domestic abuse. Domestic Violence Services provides individual and community awareness programs. Financials

36 UNION 76 Tenant UNION 76 Address Suite Rentable Square Feet Everett Rucker Ave 3,341 SF Lease Term 10 year Lease Commencement Nov 01, 2006 Lease Expiration Oct 31, 2016 Term Remaining 7 Months Lease Type NNN Annual Rent $94,536 Rent Increases Changes On Changes To Feb-2016 $97,372 Tenant Description Gas station and C-store Financials

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