OFFERING MEMORANDUM NW 52nd St Seattle, WA Exclusively offered by:

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Valentine Campbell
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1 OFFERING MEMORANDUM 1515 NW 52nd St Seattle, WA Exclusively offered by:

TABLE OF CONTENTS 1. Offering Summary... Page 3 Investment Highlights... Page 4 Location Highlights... Page 5 Property Highlights... Page 6 2. Location... Page 8-14 3. Community.

2 TABLE OF CONTENTS 1. Offering Summary... Page 3 Investment Highlights... Page 4 Location Highlights... Page 5 Property Highlights... Page 6 2. Location... Page Community... Page 16 Exterior Photos... Page 17 Interior Photos... Page Financials Unit Mix & Floorplans... Page 22 Financial Summary... Page 23 Income and Expense Summary... Page Comparables Sale Comparables... Page Rent Comparables... Page OFFERING MEMORANDUM - 2

live. The Stanton provides an opportunity for the discerning investor to acquire a completely turn-key, low-maintenance asset with the appeal of new construction located in one of the top 5

3 OFFERING SUMMARY Paragon Real Estate Advisors is proud to exclusively offer for sale the Stanton Apartments. The Stanton is a completely renovated and modernized mixed-use apartment community excellently located in the heart of Ballard, one of Seattle s most popular neighborhoods and desirable places to live. The Stanton provides an opportunity for the discerning investor to acquire a completely turn-key, low-maintenance asset with the appeal of new construction located in one of the top 5 investment markets in the country. The new owner will benefit from immediate management upside as well as upside in the rental income and will see the investment prosper over the long-term as regional market fundamentals remain strong and population and job growth continue. ADDRESS: 1515 NW 52nd St, Seattle, WA TOTAL UNITS: 26 BUILT: 1991 (2014) SQUARE FEET: 20,540 Net Rentable PRICE: $9,400,000 PRICE PER UNIT: $361,538 PRICE PER NRSF: $458 CURRENT CAP: 4.8% MARKET CAP: 5.1% FINANCING: Current loan to be assumed (see page 23 for details) OFFERING MEMORANDUM - 3

INVESTMENT HIGHLIGHTS Turnkey trophy asset in one of Seattle s best neighborhoods Mixed-use asset: 24 apartment homes and 2 commercial spaces Located in the heart of Ballard: 50 yard-line location

4 INVESTMENT HIGHLIGHTS Turnkey trophy asset in one of Seattle s best neighborhoods Mixed-use asset: 24 apartment homes and 2 commercial spaces Located in the heart of Ballard: 50 yard-line location Walkscore of 94: Walker s Paradise! Extensively renovated and repositioned to new construction quality Units feature a clean, contemporary design with modern finishes and fixtures Desirable mix of spacious one and two bedroom units Attractive and contemporary lobby and common areas Controlled access building serviced by an elevator Secure garage parking for apartment residents Covered off-street parking for commercial tenants Secure bike parking for residents Private resident storage units located on each floor Value-add opportunity through management upside Large balconies and wood-burning fireplaces in all residential units Low-maintenance/efficient design with minimal landscaping and common areas OFFERING MEMORANDUM - 4

5 LOCATION HIGHLIGHTS Ballard is one of Seattle s most popular and dynamic neighborhoods Walkscore of 94: Walker s Paradise! 2 blocks to Swedish Medical Center 3 blocks from Rapid Ride D Line with express service to Seattle CBD 3 blocks from popular NW Market Street destinations 4 blocks from Sunday Farmers Market (#1 Farmer s Market in Washington State by sales) New companies opening regional offices nearby include Alibaba, Apple, Dropbox, HBO, Payscale, and Porch 10 Minutes to Amazon s world Headquarters: 24,000 employees Close to popular neighborhoods: Queen Anne, Fremont, Greenlake, and Wallingford Silicon Canal less than 2 away: Facebook, Google, Tableau, Adobe, Getty Images, Brooks Sports Seattle s most popular restaurants, café s, boutique shops and nightlife within walking distance Low vacancy sub-market: 2.8% average vacancy rate over the past 10 years (Dupre + Scott) High income neighborhood: $83,584 average household income within one-half mile Major Employers nearby: Amazon, Facebook, Fred Hutch Cancer Research, Google, Group Health, Microsoft, UW Medical Research, The Gates Foundation 3 miles north of new 40-acre Expedia campus: 4,500 new jobs by 2018 OFFERING MEMORANDUM - 5

PROPERTY HIGHLIGHTS Extensively renovated and repositioned to new construction quality Low-maintenance/efficient design with minimal landscaping and common

sinks Stainless steel appliances Contemporary light toned wood-veneer cabinetry Designer hardware, lighting and fixtures Vinyl plank hard-wood flooring in

6 PROPERTY HIGHLIGHTS Extensively renovated and repositioned to new construction quality Low-maintenance/efficient design with minimal landscaping and common areas New Hardie Plank/Panel siding New double paned vinyl windows and sliding doors New deck railings and deck coating Quartz countertops and under-mount sinks Stainless steel appliances Contemporary light toned wood-veneer cabinetry Designer hardware, lighting and fixtures Vinyl plank hard-wood flooring in kitchens, living rooms and bathrooms All homes have washer/dryers Secure garage parking for apartments and commercial spaces Secure bike storage OFFERING MEMORANDUM - 6

7 LOCATION Aerial Map Emloyment Amenities Map Amenities Key Ballard

8 AERIAL MAP Lake Washington Capitol Hill SEATTLE CBD SoDo Elliott Bay U of WA Lake Union Queen Anne Wallingford Fremont Ballard OFFERING MEMORANDUM - 8

9 EMPLOYMENT SEATTLE AREA EMPLOYERS Adobe Alaska Airlines Amazon Apple AT&T Wireless Boeing Children s Hospital Costco Expedia, Inc. Expiditors International F5 Networks Facebook Fred Hutchinson Gates Foundation Getty Images Google Group Health Microsoft Nintendo Nordstrom Paccar RealNetworks REI Russell Investments SpaceX Starbucks Swedish Health Services Symetra Financial Tableau Software T-Mobile Twitter Uber University of Washington Virginia Mason Weyerhaeuser Zillow OFFERING MEMORANDUM - 9

EMPLOYMENT Greater Seattle excels at the industries of the future the region is a center of innovation and features some of the world s top global brands.

10 EMPLOYMENT Greater Seattle excels at the industries of the future the region is a center of innovation and features some of the world s top global brands. Our aerospace industry is one of the largest in the world, home to Boeing Commercial Airplanes and over 800 aerospace firms that employ 17% of all aerospace workers in the United States. Greater Seattle is also a leading center for information and communications technology, bolstered by industry pioneers such as Microsoft, Amazon, Expedia and 3,000 other ICT companies. As a result, our region has emerged as a world leader in cloud computing and data visualization, and ranks 4th as a global startup hub ahead of New York and Boston. Greater Seattle thrives in clean technology, boasting the world s largest hydro-electric system and ranking #1 among U.S. states towards energy efficiency efforts. In addition, Greater Seattle is among the top-five largest life science clusters in the United States, is a world center for global health, and is home to the third largest container complex in North America. OFFERING MEMORANDUM - 10

AMENITIES MAP 33 5 34 48 14 24TH AVE NW 15TH AVE NW 42 1 NW MARKET ST 7 45 10 1 6 16 47 11 32 6 6 4 44 7 3 5 37 38 17 4 9 10 9 4 40 12 1 16 39 3 19 4 44 20 3 11 11 9 21

11 AMENITIES MAP TH AVE NW 15TH AVE NW 42 1 NW MARKET ST SALMON BAY BALLARD BRIDGE OFFERING MEMORANDUM - 11

12 AMENITIES MAP KEY EAT AND DRINK ENTERTAINMENT RETAIL 1. Matador 2. La Carta de Oaxaca 3. Kickin Boot Whiskey Kitchen 4. Bastille Cafe & Bar 5. Smokin Pete s BBQ 6. Percy s & Co 7. Senor Moose 8. Stoneburner 9. The Market Arms 10. Ocho 11. Portage Bay Cafe 12. Kangaroo & Kiwi Pub 13. Golden Beetle 14. Cafe Besalu 15. Kings Hardware 16. Hazelwood 17. BalMar 18. Ballard Smoke Shop 19. Hot Cakes 25. Peddler Brewing Company 26. Hilliard s Beer 27. Stoup Brewing 28. Reuben s Brews 29. El Camion Foodtruck 30. Shelter Lounge 31. The Walrus and the Carpenter 32. Mr Gyro s 33. Olafs 34. Hale s Ales 35. Ballard Pizza Company 36. Bad Albert s Tap & Grill 37. Pestle Rock 38. The Gerald 39. The Sexton 40. Morsel and Bean 41. The Monkey Bridge 42. Kiss Cafe 43. Staple & Fancy 1. Venue Ballard 2. Ballard Locks 3. Ballard Sunday Market 4. Majestic Bay Theatres 5. Hales Palladium 6. Seattle Creative Arts Center 7. Tractor Tavern 8. Gymboree Play & Music 9. Conor Byrne 10. Blowing Sands Glass Blowing 11. Venue Wotk Studio & Boutique 12. Monster Art & Clothing 13. The Ballard Underground 14. Super Smash Games 15. Egan s Ballard Jam House 16. The Sunset 17. Full Tilt Ice Cream & Arcade 1. Second Ascent 2. The Palm Room 3. Buffalo Exchange 4. KAMgear 5. Kitchen n Things 6. Classic Consignment 7. Secret Garden Bookshop 8. Trove Vintage Boutique 9. Couch 10. Kavu Ballard 11. Gifted 12. VAIN 13. The Aviary 14. La Corza 15. Sticks & Stones Art Gallery 16. Horse Shoe 17. Lucca Great Finds 18. Ballard Woodworks 19. Trader Joe s 20. Volterra 21. Mio Tea 44. Billy Beach Sushi and Bar 45. Skillet Diner HEALTH AND WELLNESS 22. Moshi Moshi Sushi 23. The Noble Fir 24. Shiku Sushi 46. Cafe Besalu 47. Ballard Annex Oyster House 48. The Boar s Nest 1. Stone Gardens 2. LA Fitness 3. Corepower Yoga 7. Fitness The Fitness Lab 9. Kula Movement 4. Olympic Athletic Club 10. Shakti Vinyasa Yoga 5. Crossfit Seattle 11. Bell Curve Fitness 6. Ballard Health Club OFFERING MEMORANDUM - 12

BALLARD Ballard is a historic and hip little town located in the northwest region of Seattle.

Once upon a time, Ballard (settled in 1853) was its own city a blue-collar, maritime-centric enclave bustling with fishers, millworkers, and boat-builders, many of Scandinavian descent.

hippest hot spots for visitors and locals alike.

The property is a stone s throw from Ballard s historic downtown area which consists of fine dining, charming storefronts, live music and offers a pedestrian friendly environment.

13 BALLARD Ballard is a historic and hip little town located in the northwest region of Seattle. Ballard s thriving waterfront and blossoming culture makes it one of the most distinguished neighborhoods in Seattle. Once upon a time, Ballard (settled in 1853) was its own city a blue-collar, maritime-centric enclave bustling with fishers, millworkers, and boat-builders, many of Scandinavian descent. While the historic neighborhood maintains its working waterfront, a lineup of trendy bars, shops, and restaurants, plus a pedestrian-friendly layout, have helped it transform into one of the city s hippest hot spots for visitors and locals alike. Located on NW 52nd St, right in the heart of Ballard, residents at the Stanton have immediate access to everything that makes Ballard such a desirable neighborhood. The property is a stone s throw from Ballard s historic downtown area which consists of fine dining, charming storefronts, live music and offers a pedestrian friendly environment. The Stanton s address boasts a Walkscore of 94, which is considered a walker s paradise. Located all within blocks are popular places such as Senor Moose Cafe, Tractor Tavern, Majestic Bay Theaters, The Other Coast Café, Kings, La Carta De Oaxaca, Mighty-O Donuts, Hilliard s Brewery, Five Guys, Palermo Pizza, Kangaroo & Kiwi Pub, Stoneburner, Bastille Café and Bar, Volterra and many more! In addition to several restaurants and bars close by, there are grocers (Quality Food Center (QFC), Trader Joe s, Safeway), banks (Bank of America and Wells Fargo) and other service businesses, amenities and recreational destinations such as a U.S. OFFERING MEMORANDUM - 13

BALLARD Post Office, Walgreens, Swedish Medical Hospital, the new Ballard Public Library and the ever so popular Ballard Sunday Farmers Market.

Gardens Park which overlooks the majestic Olympic Mountains, providing a year-round oasis for picnics and bonfires on a rocky beach.

14 BALLARD Post Office, Walgreens, Swedish Medical Hospital, the new Ballard Public Library and the ever so popular Ballard Sunday Farmers Market. Ballard is also home to some of Seattle s best outdoor recreation and waterfront attractions such as the Ballard locks, Salmon Bay Marina, Shilshole Bay Marina and the beautiful beachfront Golden Gardens Park which overlooks the majestic Olympic Mountains, providing a year-round oasis for picnics and bonfires on a rocky beach. In recent years, new development in the area is attracting a younger resident profile to Ballard that has been attracted by the community s energetic nightlife, award winning restaurants, quality of life, retail amenities, and close vicinity to Downtown Seattle. Ballard s unique amenities, rich history, small-town charm, dynamic waterfront and close proximity to Seattle s most popular neighborhoods make it a prime location to live, work and play. OFFERING MEMORANDUM - 14

15 COMMUNITY Community Summary Exterior Photos Interior Photos

COMMUNITY SUMMARY PROPERTY SUMMARY Name Price Address Units Square Feet Built Parcel Lot Size Zoning The Stanton $9,400,000 1515 NW 52nd St, Seattle, WA 98107 26 (24 Apartments + 2 Commercial) 20,540

16 COMMUNITY SUMMARY PROPERTY SUMMARY Name Price Address Units Square Feet Built Parcel Lot Size Zoning The Stanton $9,400, NW 52nd St, Seattle, WA (24 Apartments + 2 Commercial) 20,540 Net Rentable (30,199 Gross) 1990/ ,000 Square Feet C1-65 PROPERTY SPECIFICATIONS Building One, five-story building Construction Wood-framed Roof Flat/PCV Memebrane Windows Vinyl Double Pane Plumbing Copper Heat Electric Elevator 1 Parking 20 Garage Spaces, 5 Covered Laundry In Unit Storage 8 Private storage units UNIT TYPE UNITS SF CURRENT $/SF MARKET $/SF 1 BD/1BTH $1,579 - $1,725 $2.49 $1,725 $2.63 2BD/1BTH $1,829 - $2,149 $2.45 $2,149 $2.64 Commercial 2 1,115 $1,750 - $2,300 $21.79 $1,750 - $2,300 $21.79 TOT/AVG $49,024 $2.39 $52,234 $2.54 OFFERING MEMORANDUM - 16

17 EXTERIOR PHOTOS OFFERING MEMORANDUM - 17

18 INTERIOR PHOTOS OFFERING MEMORANDUM - 18

19 INTERIOR PHOTOS OFFERING MEMORANDUM - 19

20 INTERIOR PHOTOS OFFERING MEMORANDUM - 20

21 FINANCIALS Unit mix with floorplans Financial Summary Income/Expense Summary

22 UNIT MIX AND FLOOR PLANS Deck Living Deck Living Bedroom Bedroom Dining Bath Kitchen Kitchen Bedroom Elevator D W ONE BEDROOM/ONE BATH Units SF Current Rent/SF Market Rent/SF $1,579 - $1,725 $2.49 $1,725 $2.63 TWO BEDROOM/ONE BATH Units SF Current Rent/SF Market Rent/SF $1,829 - $2,149 $2.45 $2,149 $2.64 OFFERING MEMORANDUM - 22

23 FINANCIAL SUMMARY PRICING Price: Price Per Unit: Price Per Foot: CAP: $9,400,000 $361,538 $ Current 4.8% Market 5.1% GRM: Current 14.5 Market 13.6 Down Payment: $4,175,000 (44%) Loan Amount: $5,225,000 (56%) Interest Rate: 4.37% Fixed Loan Type: Assumption of Existing Financing # TYPE SIZE CURRENT MARKET 8 1 BD/1 BTH 655 $1,579 - $1,725 $1, BD/1 BTH 815 $1,829 - $2,149 $2,149 2 Commercial 1,115 $1,750 - $2,300 $1,750 - $2,300 Total Monthly Rent $49,024 $52,234 OTHER INCOME Utility Bill Back Parking Income Storage Income Pet Rent Miscellaneous Fees Total Other Income CURRENT $1,855 $1,560 $230 $350 $1,170 $5,165 MARKET $1,855 $2,100 $240 $400 $750 $5,345 INCOME Gross Scheduled Income Less Vacancy Effective Gross Income EXPENSES Real Estate Taxes Insurance Utilities Contract Services Repairs & Maintenance Administrative Advertising Payroll Management Fee Replacement Reserves Total Expenses NET OPERATING INCOME Annual Debt Service CASH FLOW CURRENT MARKET $650,273 $690,952 $29,262 (4.5%) $31,093 (4.5%) $621,011 $659, $49,818 $49, $5,980 $5, $31,720 $31, $9,031 $9, $23,660 $23, $4,940 $4, $2,730 $2, $18,850 $18,850 PF 3.5% EGI $21,735 $23,095 PF $250/unit $6,500 $6,500 $174,964 $176,324 $446,046 $483,535 ($19,027.71/month) $228,333 $228,333 $217,714 (5.21%) $255,203 (6.11%) ASSUMPTION INFORMATION The property is encumbered with an existing loan serviced by Walker & Dunlop. The loan has an unpaid balance of approximately $5,225,000 and an interest rate of 4.37% interest only until November 2019 at which time the loan converts to a 30 year amortization. The loan matures in October It is proposed that the purchaser assume the existing financing. OFFERING MEMORANDUM - 23

24 INCOME SUMMARY GROSS POTENTIAL RENT Gross Potential Rent is based on market rent growth across the rent roll. The market rents were established on comparative analysis with market rents of nearby competing properties. See pages of the Offering Memorandum for rent comparables. The total gross potential rent is $626,808 or $52,234 per month. This equates to $2,009 per unit and $2.54 per square foot. The current rents for occupied units plus market rents for vacant units equate to $1,885 per unit and $2.39 per square foot. OTHER INCOME We have underwritten Other Income by adding up the the following subcategories, resulting in a total of $64,144. (See table) This equates to or $2,467 per unit or $206 per unit per month. OTHER INCOME NOTES Utility Reimbursements Covered Parking Storage Pet Rent $22,264 $25,200 $2,880 $4,880 Based on 2015 actual $150/mo x 20 stalls x 70% usage $50/mo x 8 closets x 60% usage $200 NR x 6 units + $25/mo x 12 units Non-Refundable Fees $3,600 $300 x 50% turnover VACANCY AND ECONOMIC LOSS Late/NSF Fees $960 $40/unit Vacancy, Concessions and Credit Loss are projected to be 4.5%. This is based on market rent surveys in the Ballard submarket for similar communities. Dupre + Scott s March Damages/ Forfeited Deposits Total Other Income $4,400 $64,144 $370/unit x 50% turnover 2016 Apartment Vacancy Report shows a market vacancy of 4.1% for Ballard. OFFERING MEMORANDUM - 24

25 EXPENSE SUMMARY REAL ESTATE TAXES We have underwritten Taxes consistent with the 2016 actual expense. Real estate taxes are not typically increased substantially immediately following the sale of a property. Properties in King County are appraised on two year cycle. The Assessor s Office is required to use the three methods of valuation to establish the appraised value and cannot rely solely on the previous sale price. We advise buyers consult a tax professional. INSURANCE Based on pro forma annual expense of $5,980 or $230 per unit. CONTRACT SERVICES Elevator - Based on actual trailing 12 month expense of $3,667 or $306 per month. Landscaping - Based on actual trailing 12 month expense of $2,431 or $203 per month. Fire Alarm - Based on actual trailing 12 month expense of $1,884 or $157/month. Pest Control - Based on actual trailing 12 month expense of $1,049 or $87/month. UTILITIES Based on 2015 actual utility expenses including electricity, water, sewer, and trash removal, which equates to $1,220 per unit. REPAIRS/MAINTENANCE/TURNOVER Based on pro forma annual expense of $23,660 or $910/unit. This includes costs associated with maintaining the interior and exterior of the Property, and the building systems, including: plumbing, electrical and HVAC systems. Also included are costs to maintain appliances and unit turnover costs. ADMINISTRATIVE Based on pro forma annual expense of $4,940 or $190/unit. This category includes costs associated with operating a leasing office, such as office supplies, office equipment, dues and subscriptions, postage, legal fees, telephone, employee training and travel. ADVERTISING Based on pro forma annual expense of $2,730 or $105/unit, which includes brochures, internet advertising, rental magazine advertising and signage. PAYROLL Based on pro forma annual expense of $18,850 or $725/unit. MANAGEMENT FEE Equal to 3.5% of the Effective Gross Income or $866/unit. This is a competitive rate for third party management companies in the Puget Sound region for apartment communities of similar size and vintage. REPLACEMENT RESERVES Based on industry standard of $250/unit OFFERING MEMORANDUM - 25

26 COMPARABLES Sales Comparables Rent Comparables

SALES COMPARABLES 1. YARDHOUSE 1406 E REPUBLICAN ST 1.

Sales Date 2014 35 $13,950,000 $398,571 $765.

2009 38 $12,975,000 $341,447 $416.07 January 2016 2.

MADISON COURT 1922 42ND AVE E Year Built Units Sales Price Price/Unit

27 SALES COMPARABLES 1. YARDHOUSE 1406 E REPUBLICAN ST 1. AROS & VOSS 2251 NW 59TH ST Year Built Units Sales Price Price/Unit Price/Foot Sales Date $13,950,000 $398,571 $ February 2016 Year Built Units Sales Price Price/Unit Price/Foot Sales Date $12,975,000 $341,447 $ January YALE APARTMENTS 2032 YALE AVE E SEATTLE, 3. MADISON COURT ND AVE E Year Built Units Sales Price Price/Unit Price/Foot Sales Date $4,775,000 $397,917 $ October 2015 Year Built Units Sales Price Price/Unit Price/Foot Sales Date $10,500,000 $375,000 $ October 2015 OFFERING MEMORANDUM - 27

SALES COMPARABLES 5. ATRIA VILLA 1251 TAYLOR AVE N 6.

Sales Date 1978 26 $9,500,000 $365,385 $356.

1929 25 $8,100,000 $324,000 $526.45 July 2015 7.

STANDARD AT FREMONT 3636 DAYTON AVE N Year Built Units Sales Price

28 SALES COMPARABLES 5. ATRIA VILLA 1251 TAYLOR AVE N 6. WELLINGTON TH AVE E Year Built Units Sales Price Price/Unit Price/Foot Sales Date $9,500,000 $365,385 $ July 2015 Year Built Units Sales Price Price/Unit Price/Foot Sales Date $8,100,000 $324,000 $ July SOPHIA APARTMENTS 607 W GALER ST 8. STANDARD AT FREMONT 3636 DAYTON AVE N Year Built Units Sales Price Price/Unit Price/Foot Sales Date $4,900,000 $326,667 $ June 2015 Year Built Units Sales Price Price/Unit Price/Foot Sales Date $4,775,000 $376,308 $ June 2015 OFFERING MEMORANDUM - 28

29 SALES COMPARABLE MAP SUBJECT 1515 NW 52ND ST 2 1. YARDHOUSE 1406 E REPUBLICAN ST 2. AROS & VOSS 2251 NW 59TH ST 8 3. YALE APARTMENTS 2032 YALE AVE E 4. MADISON COURT ND AV E ATRIA VILLA 1251 TAYLOR AVE N WELLINGTON TH AVE E 7. SOPHIA APARTMENTS 607 W GALER ST 8. STANDARD AT FREMONT 3636 DAYTON AVE N 1 6 OFFERING MEMORANDUM - 29

RENT RENT/SF Open 1 BD/1 BTH 1 BD/1 BTH 1 BD/1.

$1,950 - $2,050 $1,548 $1,828 $2,450 $2,217 $2,820 $2,000 $1,881 $2.96 $3.00 $3.01 $2.53 $2.47 $2.65 $2.75 2.

30 RENT COMPARABLES 1. SOREN TH ST NW Year Built 2015 Units 111 Deposit $600 ($300 non-ref) Parking $125 - $175/mo Pets $300 ($200 non-ref) $25/mo pet rent UNIT TYPE UNITS SF MARKET RENT AVG RENT RENT/SF Open 1 BD/1 BTH 1 BD/1 BTH 1 BD/1.5 BTH 1 BD/1 BTH + DEN 2 BD/2 BTH Live/Work TOTAL/AVG , $1,395 - $1,700 $1,595 - $2,060 $2,450 $2,083 - $2,350 $2,650 - $2,990 $1,950 - $2,050 $1,548 $1,828 $2,450 $2,217 $2,820 $2,000 $1,881 $2.96 $3.00 $3.01 $2.53 $2.47 $2.65 $ LEVA ON MARKET 1545 NW MARKET ST Year Built 2009 Units 260 Deposit $700 ($350 non-ref) Parking $105/mo Pets $500 ($250 non-ref) $25/mo pet rent UNIT TYPE UNITS SF MARKET RENT AVG RENT RENT/SF Studio 1 BD/1 BTH 2 BD/1 BTH 2 BD/2 BTH Live/Work ,020 $1,400 - $1,500 $1,634 - $2,100 $2,182 - $2,352 $2,500 $1,750 - $1,950 $1,450 $1,867 $2,267 $2,500 $1,850 $2.98 $2.43 $2.52 $2.57 $1.81 TOTAL/AVG $1,948 $2.47 NW MARKET ST 15TH AVE NW NW MARKET ST 15TH AVE NW OFFERING MEMORANDUM - 30

UNIT TYPE UNITS SF MARKET RENT AVG RENT RENT/SF Studio Open 1 BD/1 BTH 1 BD/1 BTH 2 BD/2 BTH 91 25 133 38 507 494 777 1,043 $1,375 - $1,600

AVA BALLARD 5555 14TH AVE NW Year Built 20012 Units 265 Deposit $800 ($300 non-ref) Parking $125/mo Pets $500 refundable $35/mo pet rent UNIT

31 RENT COMPARABLES 3. URBANA 1501 NW 56TH ST Year Built 2012 Units 275 Deposit $ ($300 non-ref) Parking $145/mo Pets $500 refundable $40 - $50/mo pet rent UNIT TYPE UNITS SF MARKET RENT AVG RENT RENT/SF Studio Open 1 BD/1 BTH 1 BD/1 BTH 2 BD/2 BTH ,043 $1,375 - $1,600 $1,550 - $1,700 $1,700 - $2,100 $2,450 - $2,650 $1,488 $1,625 $1,900 $2,525 $2.93 $3.29 $2.45 $2.42 TOTAL/AVG $1,834 $ AVA BALLARD TH AVE NW Year Built Units 265 Deposit $800 ($300 non-ref) Parking $125/mo Pets $500 refundable $35/mo pet rent UNIT TYPE UNITS SF MARKET RENT AVG RENT RENT/SF Studio 1 BD/1 BTH 2 BD/1 BTH TOTAL/AVG $1,470 - $1,550 $1,725 - $1,925 $2,415 - $2,750 $1,510 $1,825 $2,598 $1,933 $3.28 $2.68 $2.63 $2.76 NW MARKET ST 15TH AVE NW NW MARKET ST 15TH AVE NW OFFERING MEMORANDUM - 31

1 BD/1 BTH 1 BD/1 BTH 2 BD/2 BTH 2 BD/2 BTH Loft TOTAL/AVG 60 14 55 1 32 4 166 471-551 691 759-833 1,102 1,016 1,103 717 $1,350 - $1,525 $1,750 - $1,800 $1,825 - $1,995 $1,790 - $22,100 $2,430 -

32 RENT COMPARABLES 5. KOI 1139 NW MARKET ST Year Built 2013 Units 166 Deposit $600 ($300 non-ref) Parking $130/mo Pets $500 ($250 non-ref) $25/mo pet rent UNIT TYPE UNITS SF MARKET RENT AVG RENT RENT/SF Studio 1 BD/1 BTH 1 BD/1 BTH 1 BD/1 BTH 2 BD/2 BTH 2 BD/2 BTH Loft TOTAL/AVG ,102 1,016 1, $1,350 - $1,525 $1,750 - $1,800 $1,825 - $1,995 $1,790 - $22,100 $2,430 - $2,630 $1,800 - $2,950 $1,438 $1,775 $1,911 $1,945 $2,530 $2,875 $1,865 $2.83 $2.58 $2.43 $1.76 $2.49 $2.61 $ CADENCE 3040 NW MARKET ST Year Built 1948/2014 Units 138 Deposit $500 ($250 non-ref) Parking $125/mo Pets $400 ($200 non-ref) $25/mo pet rent UNIT TYPE UNITS SF MARKET RENT AVG RENT RENT/SF 1 BD/1 BTH 1 BD/1 BTH 2 BD/1 BTH TOTAL/AVG $1,495 $1,595 - $1,695 $2,095 - $2,395 $1,495 $1,645 $2,245 $1,795 $2.49 $2.74 $2.74 $2.66 NW MARKET ST 15TH AVE NW NW MARKET ST 15TH AVE NW OFFERING MEMORANDUM - 32

RENT COMPARABLE MAP SUBJECT 1515 NW 52ND ST 1. SOREN 5711 24TH ST NW 2. LEVA ON MARKET 1545 NW MARKET ST 3.

33 RENT COMPARABLE MAP SUBJECT 1515 NW 52ND ST 1. SOREN TH ST NW 2. LEVA ON MARKET 1545 NW MARKET ST 3. URBANA 1501 NW 56TH ST 4. AVA BALARD TH AVE NW 5. KOI 1139 NW MARKET ST 1 6. CADENCE 3040 NW MARKET ST OFFERING MEMORANDUM - 33

34 EXCLUSIVELY OFFERED BY PARAGON REAL ESTATE ADVISORS

z BALLARD VIEW F L A T S

z BALLARD VIEW F L A T S z BALLARD VIEW FLATS SEATTLE CBD CAPITOL HILL FREMONT QUEEN ANNE WALLINGFORD INTERBAY BALLARD OFFERING Paragon Real Estate Advisors is pleased to exclusively offer for sale the Ballard View Flats, a well