Multifamily Offering

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1 Multifamily Offering EVERGREEN POINTE, WA ATTENTION INVESTORS, DEVELOPERS, AND BUILDERS!!! This is a rare find!! Permit ready for 109 units, 2 buildings with a combined 4200 sqft of ground floor retail component. Joint Venture Partnership or purchase. Estimated completion value of $34,000,000. Passing of the Foot Ferry Service, makes an easy commute From to Seattle. Amazing Mountain and Water View. Tremendous demand for new apartments in the area! Zoned POMX-Pedestrian Oriented Mixed Use. The Evergreen Pointe development is fully entitled, it has received Site Plan Approval from the City of and it s Shoreline Substantial Development Permit from the State of Washington, Department of Ecology. Architectural Permit Applications have been submitted. Turn key project ready to develop!! Offered At: $4,500,000 Corey Crain I I I

2 EVERGREEN POINTE - TERM SHEET PROPERTY INFORMATION: Evergreen Pointe Projected Proforma 12 - Studio Apartments Total Unit Sq Ft: 6,306 Gross Income Rents: 81, /sq ft PB Units have premium.05 Commercial Space: $15/ Sq ft Parking: 109 $78 / space Storage: 3,406 Sq $1.56/ sq ft Misc.#: Total Gross Income: $2,131,556 $62,993 $102,024 $63,760 $56,160 $2,416, Bedroom Apartments Total Unit Sq Ft: 34,181 Vacancy/Bad Debt: Effective Gross Income: ($60,412) $2,356, Bedroom Apartments Total Unit Sq Ft: Street Level Retail Total Sq Ft: Available Storage Total Sq Ft: Garage Parking 109 Spaces 40,735 4,078 3,406 Expenses*: NOI: Cap Rate / Value: 5.60% Loan to Cost: 80% $20,000,000 Debt Service: 3.565%, 30 Year, DCR 1.60 $1,086,434 Net Income: $842,912 # Forfeited deposits, cleaning fees, NSF, Pet Deposits, Vending *$3,915 / Unit - Sources: O Connor Consulting There is a property tax abatement for 12 years from issuance of C of O s. ($426,735) $1,929,346 $34,452,607 Breakdown of Projected Expenses Payroll: $1,300/Unit $141,700 Marketing/Advertising: $200/Unit $21,800 Property Management: $508/Unit (3% of EGI) $55,372 Admin: $150/Unit $16,350 Operating: Utilities (Net): $206/Unit $22,454 Electricity: $125/Unit $13,625 Water/Sewer: $550/Unit $59,950 Garbage: $150/Unit $16,350 $89,925* Repairs/Turnover $450/Unit $49,050 Insurance: $334/Unit (.45/ Sq ft of NRA) $36,457 Taxes: $91/Unit** $9,919 Landscaping: $100/Unit $10,900 Elevator: $75/Unit $8,175 Replacement Reserves: $250/Unit/Yr $27,250 Total: $399,520** *75% Is billed back to Tenants **There is a property tax abatement for 12 years from issuance of C of O s *** Income calculation will use $3,915/Unit - Sources: O Conner Consulting 2016 Market Study * Pricing is subject to change. ** Square feet listed is an approximate

3 EVERGREEN POINTE Projected Project Costs Hard Costs Gross Residential Area 146,257 Sq $ Sq Ft $20,670,720 Tenant Improvements $25.00 Sq Ft $100,950 Total Hard Costs: $20,771,670 Soft Costs A&E Construction Admin Other Consultants (Landscape, Surveyor, Envelope, etc.) City Fees (Bldg Permits, W/S, Mechanical, Storm) Title, Closing Interim Interest at 3.49% for 18 Mos. On $18M Loan Marketing Project and Construction Management Taxes & Insurance Legal & Accounting Miscellaneous F.F+E Total: $223,141 $48,000 $137,000 $536,000 $27,000 $510,000 $200,000 $500,000 $50,000 $150,000 $100,000 $2,531,141 Land Cost ($21,101 Per Unit) $2,300,000 Total Project Cost: $25,602,811

4 EVERGREEN POINTE Evergreen Rotary Park Evergreen Pointe Project Aerial View

5 EVERGREEN POINTE Since there has been very little new apartment construction to speak of in the City or the County since 1994, there is tremendous pent-up demand for new apartments throughout the area. The recent study by O Connor Consulting Group concluded that there is a significant multi-family imbalance between supply and demand, based on just structural demand for new housing. Structural demand is defined as new housing needed based on new job formation and net inmigration. There are over 40,000 jobs within a 15 minute drive to Evergreen Pointe. There is a stable work force of over 20,000 in a one mile radius of the site, with an average income of over $65,000/yr. with over 2,000 earning over $100,000/yr. This means that there are many potential renters close by who can afford the most expensive units in the building. This bodes well for timely absorption. The demand for a superbly designed podium-style building at this highly visible location should be great. Evergreen Pointe is projecting rents at $2.10/s.f. This rent structure is close to being the most affordable of any new or in lease-up project in the 4 county area (The Greater Seattle Area) The above referenced market study projects absorption at 16-18/months, which means a 6 month lease up. Household Growth Forecast Kitsap County Year Total Employment New Jobs Total Population New Persons , ,656 2, ,059 1, ,819 3, ,968 1, ,340 2, ,810 1, ,772 2,432 Source: US Census, OCG, The Puget Sound Economic Forecaster Total Households Average HH Size New Households 1,062 1,265 1, Marginal Tenure Demand , , , , % 45.0% 40.0% 40.0% 1 Towers 2 Towers Ph II 3 Towers Ph III 4 Spyglass Hill Apartments 6 Evergreen Point 7 Harborside Commons 8 Portside 9 21-Unit 10 Eastside Mortgage Property PROPOSED APARTMENT SUPPLY IN KITSAP COUNTY NO. OF COMPLETION MODIFIED NO. PROPERTY SITE LOCATION CITY UNITS TYPE STATUS DATE PROB COUNT Washington Avenue Washington Avenue Washington Avenue 654 Hignland Ave 602 Burwell St Sheldon Blvd Second Ave & Burwell Street 2nd St and Washington 2090 Wheaton Way 1231 Campbell Way For Sale On-Hold On-Hold Late 15 Late 15 Late 15 Post 17 Post % 30% 30% 95% 95% 100% 5% 5% 50% 0%

6 THE CITY OF BREMERTON, Washington, is the largest major urban center in Kitsap County, with an estimated 37,259 residents in 2010 The beautifully situated and planned waterfront community features direct ferry service for a 55-minute car ferry Commute to downtown Seattle, and a foot ferry to nearby Port Orchard. A new passenger-only ferry was passed in November 2016, cutting the trip to Seattle down to 30 minutes. Olympic College is within walking distance, a public Two-year Community College, with many 4 year degree options and educates more than 13,000 students a year. Also, an inviting tourist destination, features such Attractions as the USS Turner Joy, the Naval Museum, a Newly constructed marina with 300+ slips, parks, shops, galleries, and restaurants. The soon to be completed Bridge to Bridge Urban Trail will be one of the most scenic walks in America, which will boost tourism. Evergreen Pointe is in the Center of this urban trail. The Naval Shipyard, the major employer, is adjacent to downtown. Is home to a large naval community of both active-duty and retired personnel. The central business district is the historic core of the City of. It has served as a site of the most concentrated Area of jobs in Kitsap County for decades. In the early 2000 s, the City of initiated an aggressive, award-winning Downtown Revitalization Plan, now called the Harborside District, with the participation of internationally-renowned Urbanest Peter Calthorpe, ex-congressman Norm Dicks, Kitsap County, Kitsap County Consolidated Housing Authority, Kitsap Transit, the Port of, and other community partners. The newly created developments are centered around the Harborside District, and include a regional waterfront conference center, with hotels, parking, restaurants, retail and living space, expanded marina facilities, a series of waterfront condominiums on Washington Avenue and the doubling in size of Evergreen Park. An integral addition in the District will be the Harborside Commons (pictured below), featuring a public plaza, a supermarket and retail with market rate housing above it. With two dozen public and private projects and an expected total investment of $800 million, is poised

7 THE REGION The Seattle Metropolitan Statistical Area (MSA) generally refers to the Seattle-Tacoma-Bellevue--Everett locale. These combined areas have the largest concentration of population north of San Francisco and west of Chicago. Metro average of 36 of rainfall per year. Seattle s Strategic location and thriving economy have made strict land use planning, topographical constraints on supply, and employment growth that consistently ranks above the national average. Favorable renter demographics, positive job numbers and population projections position the Greater Seattle Area as a strategic market for multifamily investment gains. Kitsap County, on the Kitsap Peninsula, is surrounded by water on 3 sides with 236 miles of shoreline, the most of any county in America. Kitsap County is also known as the West Sound, and has a population of 267,000. Within this metro area is the City of, which is the largest city in Kitsap County.