RARE EAST SIDE INVESTMENT OPPORTUNITY th Place NE Kirkland WA 98034

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1 RARE EAST SIDE INVESTMENT OPPORTUNITY th Place NE Kirkland WA O F F E R I N G M E M O R A N D U M

2 NE 124th St.

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4 The Totem Lake OfficeMax property is a true core development opportunity - with in-place income that can be re-developed immediately or in the future. The location and zoning are advantageous for development with the ability to go vertical and potential uses including multi-family, hospitality, senior care, assisted living, medical, office and retail. The OfficeMax lease contains an ongoing Landlord termination right (1 year prior notice period ) allowing the investor to re-develop the property immediately, or hold for future development. OfficeMax signed a 5-year lease renewal commencing May 2016 and expiring April 2021, subject to the ongoing Landlord lease termination right. This is a special offering providing the opportunity to acquire an asset on the affluent eastside ; on I-405 in the heart of the Totem Lake trade area; with in-place income; recent 5-year lease renewal; and with ability and market demand to redevelop immediately or in the future. BEST OFFER ASKING PRICE TERMS OF THE OFFERING $350,150 NOI 23,500 SF BUILDING AREA 1.71 ACRES LAND AREA Financing: Free and Clear Address: th Place NE, Kirkland, WA Year Built: 1996 Parcel Number: Zoning: TL 4A (Click for Detailed Zoning Description) LEASE SUMMARY Tenancy: Single Tenant: Office Max Lease Type: Net Lease Landlord responsible for roof and structure Lease Term: 5 years (Includes ongoing Landlord termination right) Lease Expiration Date: April 30, 2021 Current Rent: $352,500 Annually ($15.00/SF) O F F E R I N G M E M O R A N D U M // 4

5 HIGHLIGHTS Redevelopment Potential Landlord termination right allows flexibility to the owner for future redevelopment. Attractive Zoning Zoning is flexible and allows for various residential and commercial uses. Excellent Location Situated in the heart of the Totem Lake neighborhood on I-405 with easy access to neighboring cities Redmond, Bellevue and Woodinville. High Traffic Counts and Strong Visibility Excellent visibility and signage along I-405 with over 127,000 ADT. Solid Demographics Over 233,000 people and average incomes over $130,000 within a five-mile radius. The Village at Totem Lake Just north of the site, The Village at Totem Lake, a luxury mixed-use lifestyle center, is under construction and will provide additional draw to the area. No Debt The property is offered free and clear of debt allowing an investor to take advantage of a new loan. Recent 5-Year Renewal OfficeMax recently exercised their 5-year renewal, with a new expiration of April 2021, subject to the ongoing Landlord termination right. National Tenant OfficeMax, now a subsidiary of Office Depot, Inc., is part of the largest US office-supplies chain. Strong Historical Occupancy Office Max has been at this location since construction over 20 years ago. O F F E R I N G M E M O R A N D U M // 5

6 Kingsgate Park & Ride MEDICAL CENTER 318-Bed Medical Center with Four Medical Specialty Buildings Serves Approximately 850,000 Residents Totem Lake Business District is Kirkland s only designated urban center and the hub for future regional growth. The area is expected to have high-density housing and strong employment with approximately 15,000 jobs within a half-mile of a transit center. Major 405 Interchange 165,000+ ADT Investment Site Seattle 20 mins Redmond 14 mins Bellevue 12 mins SERVICE AERIAL O F F E R I N G M E M O R A N D U M // 6

7 Lennar Apartments (339 units) - Planned 855 Units Under Construction Jefferson house Memory Care (60 Units) - Planned Chelsea Court Phase II (80 units) - Planned 144 single family homes Under Construction Sedoras Townhomes (112 units) - Planned Investment Site Athene Senior Housing (91 Units) - Under Construction Wolf Totem Lake Apartments (550 Units) - Planned Vareze Residential (82 Units) - Planned Totem Lake is rapidly expanding with over 2,000 housing units already planned or under construction DEVELOPMENT AERIAL O F F E R I N G M E M O R A N D U M // 7

8 NE 124th St. The project will include a state-of-the-art luxury theatre, a village commons and park, experiential restaurants, unique retail, high-end residential and other modern features, while retaining several of the legacy tenants. Investment Site RETAIL AERIAL O F F E R I N G M E M O R A N D U M // 8

9 DEMOGRAPHICS Woods Population 1 mile 3 miles 5 miles 2000 Population 12,975 89, ,687 Edmonds Population 13,362 95, , Population 14, , ,441 Median Household Income 1 mile 3 miles 5 miles Poulsbo 2017 Median Household Income $79,359 $95,636 $96, Woodinville 2022 Median Household Income $88,240 $104,295 $105, Annual Rate Projection 2.14% 1.75% 1.79% Average Household Income Bainbridge Island 2017 Average Household Income 102,199 $126,826 $131, Average Household Income Projection $116,560 $142,900 $148, Kirkland 1 mile 3 miles 5 miles Redmond Annual Rate Projection 2.66% 2.42% 2.36% Per Capita Income 2017 Per Capita Income 44,346 $52,678 $54,265 Seattle Bellevue Per Capita Income Projection $50,194 $59,002 $60, Annual Rate Projection 2.51% 2.29% 2.24% Issaquah O F F E R I N G M E M O R A N D U M // 9

10 RARE EAST SIDE INVESTMENT OPPORTUNITY th Place NE Kirkland WA O F F E R I N G M E M O R A N D U M CONTACT INFO: PAUL SLEETH Executive Managing Director Direct: paul.sleeth@ngkf.com BILLY SLEETH Executive Managing Director Direct: billy.sleeth@ngkf.com MULTI-FAMILY CONTACT: MARTY LEITH Executive Managing Director Direct: mleith@aranewmark.com 1420 Fifth Avenue, Suite 2150 Seattle, WA 98101