$5,250,000 Value ($218,750/Unit) 4.25% Cap

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1 Commercial/Investment Real Estate Atrium Court Office Condominiums (Mailing Address) 705 S. 9th Street, Suite 303 P.O. Box 1492 Tacoma, WA Tacoma, WA (253) Office (253) Fax 24, 2-Story, VALUE ADD Townhouse Apartments Make $2 Mil & Increased Income with your Upgrades RIVIERA TOWNHOUSE APARTMENTS 2727 NORTHEAST 125TH STREET SEATTLE, WASHINGTON $5,250,000 Value ($218,750/Unit) 4.25% Cap Disclosure: Information contained herein has been obtained from the Seller and other sources deemed reliable. This information is true and correct to the best knowledge and belief of Arsenault Realty Advisors, LLC. All area sizes are approximate and obtained primarily from the Assessor. There are no warranties or guaranties made as to the accuracy or completeness of the information contained herein. Purchasers are encouraged to inspect the source documents and make their own conclusions from the information collected during the Due Diligence time frame. All parties should seek their own tax and legal advice. 1518

2 Riviera Townhouse Apartments Page 2. Location: 2727 NE 125th Street, Seattle, WA Great Corner Location, Easily Accessible to Shopping, Dining and Transportation. Located Just West of Lake City Way, a major arterial of Seattle which connects to Bothell/Kirkland and to Interstate 5 making this site only 15 minutes to Downtown Seattle. The Site is located close to shopping, restaurants and other retail. There is a predominance of multi-family with many newer, mid-rise apartment buildings located across the street from the subject property. The site is conveniently located in the near North East side of Seattle close to the expanding Northgate Shopping Center, University of Washington, Lake Washington and neighboring communities of Bothell, Kirkland and Juanita, WA. Interestingly, the site is on the same block as the Lake City Playground and across the street from Davis Park and Lake City Memorial Park. The Lake City offices of State Farm and Chase Bank are located across the street from the site. There is also a preschool across the alley from the Site. Apartment Units: 24 Total Units, All 2 Story, Townhouse Style 24 Two Bedroom 1 Bath 790 Sq. Ft. (Approximately) Built as Two, Parallel, Rectangular Buildings connected together with a mid-section with a common Laundry Room and Building Storage. Every unit consists of two bedrooms and a full bath upstairs with a large, open living area, kitchen and a large storage closet on the main floor entry lever with a front and back door. Each bathroom is full size with a shower and tub. Every unit has been maintained well; but, is now outdated. There is a huge Value-Add potential with this property. Rents are currently approximately $ below average market rents for similar properties as reported in the October 2017 DuPre & Scott Report. (Please see copy of that Report for 1985 & Older, N. King County attached). Total Building Area: 19,824 Sq. Ft. (Per King County Assessor) ( Priced at $264.83/SF) (DuPre & Scott shows Average Price/SF $293.45/SF

3 Riviera Townhouse Apartments Page 3. Amenities: Ample Size Townhouses nicely designed, with Open Floor Plans providing great flexibility in usage with 2 beds & full bath upstairs. Common Laundry: The laundry machines are leased. The leasing company provides all of the machines and full servicing of those machines. The owner receives a monthly check as additional income. (Please See Income Statement included) This Property is Prime for Redevelopment with today s upgrades and remodeling the existing townhouses for greatly increased rents and positive cash flows. King County Midrise Zoning: Parking: NC3-65 ZONING (Midrise), Allows Buildings to be 65 Ft High! Prior Architectural design showed 108 units with a mix of one and two- bedroom apartments. (See Design Attached) However, the number of new apartment units is dependent upon design and functionality. Many more units can likely be added with the newer Apodment type units. Maximum Building Density is 65% of Lot. Open Space required is 25% of Ground Level. Naturally, all designs and plans will have to be approved by the City of Seattle Building Dept. Open, On-Site Parking for 23 Cars Year Built: 1959 Effective Year Built 1981 (Assessor) Site Area: Lot Dimensions: Value Added Opportunity: 27,443 SF or 0.63 Acres. (Per Assessor) Approximately 109 Ft on 125 th and Ft on 28 th Ave. NE. Raise the Rent: Current Rents are only $1,300/Month, as of March The October 2017 Apartment Investment Report by DuPre & Scott shows Average Rent, 1985 & Older at $1, per month in this area. Two Units at $1,400/Mo. Upgrade the existing units and get a Huge Increase in Rents. Also, Establish Separate Utility Billings and eliminate utility charges from your expenses, greatly adding to your bottom line and Net Operating Income! Property in the Direction of Growth. MH zoned property with this intensity of use is very rare and the amount of land available within this zoning is limited with greatly increasing values.

4 Riviera Townhouse Apartments Page 4. Tax Parcel Number: King County, Washington. Census Tract: Map Coordinates: Utilities: Owner Pays: Appliances: Laundry Facilities: 505-D4 (Thomas Brothers) Tenant Pays: Electricity, BB Heat (Separately Metered) (Please see operating statement attached) Water, Sewer, Garbage and common area Electricity Ranges & Refrigerators. Four (4) sets of Washers and Dryers (Newer Machines Provided by Leasing Company Providing Laundry Income) Listed Price: $5,250,000 Listed Cap Rate: Riviera DuPre & Scott Avg (See Attached) Cap Rate: 4.25% 3.8% Unit Size: 790 SF 732 SF Price Per Unit: $218,750 $276,790 Price Per SF: $ $ Per SF Assessed Value $4,082,000 Avg. % of Assessment 78.4% Resulting Value: $5,206,633 Gross Scheduled Income: $371,500 Effective Gross Income: $360,355 Annual Expenses: $137,583 ($5,733/Unit/Yr) or 38.2% of Effective Gross Income Net Operating Income: $222,772 Listed Price: $5,250, % Cap Rate

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6 Riviera Townhouse Apartments Page 6. Looking Northwest from 28 th Ave. NE

7 Riviera Townhouse Apartments Page 7. Looking West from Corner of 125 th Street & 28 th Ave. Architectural Image of What 108 Units Would Look Like Please Note: City of Seattle Zoning is NC3-65: This zoning with 65 ft in height allows for commercial use on the first floor and residential use above. The 108 Unit design is from one architect, however, that is decided by design and NOT a requirement of Zoning. It s probable that more units can increased by having a smaller unit size. That is because

8 Riviera Townhouse Apartments Page 8. the Envelope of the building is dictated by zoning, so design will dictate the final number of dwelling and commercial units.

9 Riviera Townhouse Apartments Page 9. Most Recent Comparable Sales in N. Seattle

10 Riviera Townhouse Apartments Page 10.