100 UNITS NEW CONSTRUCTION OFFERING MEMORANDUM $5,750,000. Fully Entitled Permits Pending Development Site

Transcription

1 OFFERING MEMORANDUM $5,750,000 MULTIFAMILY DEVELOPMENT SITE 2601 SW WATER AVENUE PORTLAND, OREGON 100 UNITS NEW CONSTRUCTION Fully Entitled Permits Pending Development Site SKIP ROTTICCI, CCIM ALEX CHENG KENNETH VERBECK

2 OFFERING MEMORANDUM Table of Contents INVESTMENT SUMMARY PAGE 3 PROPERTY INFORMATION PAGE 6 MARKET OVERVIEW PAGE 15 COMPARABLES PAGE 28 FINANCIAL OVERVIEW PAGE 32 Exclusive Advisors This Offering Memorandum contains select information pertaining to the business and affairs of the Property at 2601 SW Water Avenue in Portland. It has been prepared by Colliers International. This Offering Memorandum may not be allinclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. For further information regarding the purchase and sale of this asset, to schedule a tour, or to submit a bid, please contact the following Colliers International professionals: TRANSACTION GUIDELINES PAGE 34 Alex Cheng Associate Multifamily DIRECT alex.cheng@colliers.com Skip Rotticci CCIM Vice President Multifamily DIRECT skip.rotticci@colliers.com Kenneth Verbeck Associate Multifamily DIRECT kenneth.verbeck@colliers.com 851 S.W. Sixth Ave., Suite 1200 Portland, Oregon COLLIERS INTERNATIONAL P. 2

3 > Investment Summary

4 INVESTMENT HIGHLIGHTS Investment Opportunity The Water Apartments site, located at 2601 SW Water Avenue, offers a unique opportunity to acquire a large 20,059 square foot site fully entitled for 100 multifamily units in very close proximity to the Central Business District, OHSU, Portland State University, South Waterfront, and Light Rail and Streetcar stations. The property is zoned Commercial Office 2 (CO2) and has all land use approvals with permits pending. The owner has initiated building permit review as permit number CO for a 100-unit multifamily structure that includes studios, one, two and three bedroom units, 24 onsite parking spaces, and onsite secure bicycle storage and bicycle amenities in a five story above grade structure. This is a unique opportunity to acquire a fully entitled site with permits pending in very close proximity to the CBD, OHSU, Portland State University, Light Rail, Street Car, and the Tram with the ability to begin construction almost immediately after closing SW WATER AVENUE 20,059 SF site SW Baker Street SW Water Avenue SW Water Avenue SW Arthur Street SW Corbett Avenue NORTH COLLIERS INTERNATIONAL P. 4

5 INVESTMENT HIGHLIGHTS Site Details PRODUCT TYPE: Multifamily development site ADDRESS: 2601 SW Water Avenue, Portland, Oregon GROSS LAND AREA: 20,059 square feet NET DEV. LAND AREA: 20,059 square feet OCCUPANCY: CO2 YEAR BUILT: TBD FAR: Land Use Approved CONSTRUCTION: Wood Frame Type V STORIES: 5 HEIGHT LIMIT: 55 feet ZONING Commercial Office 2 (CO2) APN: 151E10BA 03700, 03600, 03500, 151E0BB Bike Score 76 Walk Score 84 Transit Score COLLIERS INTERNATIONAL P. 5

6 > Property Information

7 PROPERTY INFORMATION Property Information 2601 SW Water Avenue is in the favored Southwest quarter of Portland and is less than a 10-minute walk to the following: Two light rail stations- SW Moody Station and the SW Lincoln Station Three Street Car Stations- SW Lincoln at First, SW Harbor & Harrison, and SW Moody & Meade Oregon Health Sciences University (OHSU) Portland State University (PSU) The Aerial Tram Portland Central Business District Retail and restaurants at the Strand South Waterfront (SoWa) COLLIERS INTERNATIONAL P. 7

8 PROPERTY INFORMATION Property Information The site is 20,059 square feet and consists of four separate tax parcels and two distinct addresses: 2601 SW Water Avenue, and 2611 SW Water Avenue. The topography is generally flat with some upslope to rising towards the southwest. The topography allows for efficient and cost-effective shoring and foundation work to allow for semi-subterranean parking. The building in permit review takes advantage of the site configuration to allow for Willamette River, Central Business District, OMSI, and the New Tilikum Crossing views. This location will be immensely popular with OHSU and PSU students, faculty and staff, nurses, doctors, and anybody desiring to live in close proximity to the CBD and numerous transit options. The design development team to date includes Jackson Main Architects, AKS Engineering and Planning, and KPFF Structural Engineers. COLLIERS INTERNATIONAL P. 8

9 PROPERTY INFORMATION DOWNTOWN PORTLAND SW Barbur Boulevard SW Lincoln Street Marquam Bridge SW 1 st Avenue SW Water Avenue U.S. HWY 26 SW Arthur Street SW Corbett Avenue SW Moody Street Tilikum Crossing SW Barbur Boulevard U.S. HWY 26 NORTH 2601 SW WATER AVENUE 20,059 SF site COLLIERS INTERNATIONAL P. 9

10 PROPERTY INFORMATION Concept Drawings COLLIERS INTERNATIONAL P. 10

11 PROPERTY INFORMATION Floorplans COLLIERS INTERNATIONAL P. 11

12 PROPERTY INFORMATION Floorplans COLLIERS INTERNATIONAL P. 12

13 PROPERTY INFORMATION Floorplans COLLIERS INTERNATIONAL P. 13

14 PROPERTY INFORMATION Floorplans COLLIERS INTERNATIONAL P. 14

15 > Market Overview

16 PORTLAND, OREGON #1 More people packed up and moved to Oregon than moved away Portland ranks #3 as one of the best cities to start a business by Forbes Two incubators in Portland have raised more than $140 million generating 60 companies MARKET OVERVIEW Urban Land Institute ranks Portland #3 for parks and open space areas per 1,000 residents Portland #4 for best cities for cycling Portland has the 11th largest public transit system in the U.S. and ridership ranks 13th

17 MARKET OVERVIEW Live, Work, Play > Portland 20 greater than tech-centric Austin* 5 Named one of the Top 5 Cities for High Tech by The Atlantic Portland is an enduring technology hub* Portland s high-tech employment is 20% *GREATER PORTLAND WORKBOOK % of the working population in Portland has a bachelor s of arts degree or higher* COLLIERS INTERNATIONAL P. 17

18 MARKET OVERVIEW City of Portland Crisscrossed by rivers, mountains and vineyards, Metropolitan Portland offers more than urban adventure. Within a few minutes drive of downtown Portland are Pinot-producing wineries (most with year-round tasting rooms), kayak-friendly waterways that nudge wildlife preserves and, of course, the glorious foothills of Mount Hood. And if it s urban adventure you crave, be warned that Portland, the Rose City, isn t your run-of-the-mill urban megapolis. An effervescent arts community, dozens of urban parks and green spaces, a lively downtown, complete with an open air plaza that serves as the community s living room and a world-class public transportation system, are just few of the reasons that make this one of the country s most livable cities. And Oregon continues to top the list, for a consecutive year, as the top moving destination of 2015 according to the United Van Lines mover study. Its mild climate, scenery, friendly people, vibrant culture and arts community has placed Portland on the Best of lists in many publications and online surveys. In the third quarter of 2015, Portland grabbed the top rent-growth market with a staggering 14.8% growth - Axiometrics Multnomah County named one of nation s top markets for renting to millennials - Portland Business Journal Portland one of the Top 10 Occupancy Markets and ranked #7th in Top 10 Apartment Boomtowns for Multifamily Executive COLLIERS INTERNATIONAL P. 18

19 MARKET OVERVIEW Portland Honors 2016 > > Named the food and drink capital of America The Telegraph (Feb. 5, 2016) > > One of the Top 10 U.S. Destinations for Solo Travel in 2016 FlipKey (Feb. 5, 2016) > > Why Portland is the USA s coolest city right now International Traveller (Jan. 20, 2016) 2015 > > No. 1 The 10 Best Food Cities in America The Washington Post (Dec. 21, 2015) > > One of the Top 10 U.S. Conference Cities Smart Meetings (Nov. 5, 2015) > > No. 10 Best Big Cities in the U.S. Condé Nast Traveler (Oct. 19, 2015) > > One of the Best Cities for Millennials in 2015 Forbes (Oct. 2015) > > Named the country s best known bastion of good living and leisure The New York Times (Sept. 9, 2015) > > No. 1 America s 20 Best Cities for Beer Lovers Travel + Leisure (Aug. 4, 2015) > > No. 1 Cities of Gold: Five Best Beer Towns Weekly Pint (July 30, 2015) > > One of America s best food cities The Washington Post (June 30, 2015) > > Best U.S. Tourism Destination U.S Tourism Quality Performance Report (June 2015) > > No. 1 World s Best Airports Domestic Travel + Leisure (June 2015) > > No. 1 America s Greenest Cities Travel + Leisure (May 4, 2015) > > Best Food Town Sunset (May 2015) > > One of the Top 12 Foodie Cities for Meetings Collaborate (May 2015) > > No. 1 Best Beer Cities in America Thrillist (May 1, 2015) > > Travelers Choice U.S. Destination TripAdvisor (March 2015) > > City with the best hotel WiFi in the U.S. Hotel WiFi Test (Jan. 20, 2015) PORTLANDERS AT A GLANCE Enjoys flexibility and choice of retail, dining and entertainment Community-driven, motivated and inspired by collaborative space Desires balance, a comfortable blend of work and play Appreciates accessibility of public transit COLLIERS INTERNATIONAL P. 19

20 MARKET OVERVIEW POPULATION EMPLOYMENT HOME SALES HOME VALUES RETAIL SALES Projected Trends for 2016 UNEMPLOYMENT COLLIERS INTERNATIONAL P. 20

21 MARKET OVERVIEW Economy Portland, nicknamed the Rose City, The City of Roses, and Beervana because it has more microbreweries inside the city limits than any other city in the world. Once reliant on timber, fishing and agriculture, Portland s diversified economy now includes technology, healthcare and education with a special emphasis on clean technology, advanced manufacturing, software and active wear. Fortune 1,000 companies Nike (#115), Precision Castparts (#322), Stancorp Financial Group (#755) and Schnitzer Steel (#803) call Portland home. Providence, Legacy and Kaiser support a combined 33,863 jobs, underscoring the importance of the healthcare industry to the Portland-Vancouver-Hillsboro MSA. And straddling the healthcare and education sectors is the Oregon Health & Science University (OHSU). With over 13,000 employees and approximately 3,000 students, this nationally renowned public university is one of the nation s top 20 biomedical research facilities. According to the Bureau of Economic Analysis, at 22.8%, Portland had the fastest GDP growth rate from of all major metropolitan areas in the country. Domestic and international trade support over 140,000 jobs in the Portland region and generate nearly one-fifth of the city s economic activity. With an eye to expanding and nurturing international trade relations, the Portland Development Commission has partnered with regional and state organizations on strategic trade missions to Japan, Brazil, Canada, the United Kingdom, Germany, Sweden and Spain, signing memoranda of understanding with numerous international partners including Sustainable Hub, a Brazilian consulting firm; Fagerdala Hem in Sweden, a pioneer in homebuilding systems; and the Hong Kong Environmental Protection Department to promote sustainable communities. Population > > The City of Portland accounts for more than one quarter of the PMSA s approximately 2.3 million residents. It is the 29th largest city in the country. > > The metro area s median age is 37, a year younger than both San Francisco s and Philadelphia s. > > Population is projected to reach 2.8 million by COLLIERS INTERNATIONAL P. 21

22 MARKET OVERVIEW Well Educated Work Workforce Force 10% increase over 2007 in terms of # of residents with BA or higher a pace that is faster than San Francisco, Seattle, and San Jose. 35.4% of workers have a BA or higher 12.8% of workers have graduate degrees 19 four-year colleges within the greater Portland city limits Demographics 4.4% Unemployment Rate 3.3% YOY Job Growth in 2015 Median Household income of $60,000/year Portland Metro Estimated Population Growth of 725,000 residents by Metro Gov. Urban Growth Oregon s urban growth policies are recognized nationally as an effective planning program. In 1972, state legislators enacted legislation which created an Urban Growth Boundary (UGB) around 241 cities and barred development outside these defined areas. Legislation also recognized urbanizable land, that would accommodate cities growth in the future. The UGB is systematically extended to encompass these parcels as population increases. This process has been successful in containing urban sprawl, protecting property values and promoting efficient utilization of infrastructure. COLLIERS INTERNATIONAL P. 22

23 MARKET OVERVIEW Employment The Brookings Institute s January 2016 Metro Monitor composite index ranks the 100 largest MSA s across job growth, unemployment, gross product range and home prices. Portland ranked 15th for overall growth and also compares favorably to other top metropolitan areas. > > 12th in average wage with a 5.3% increase over the past five years. > > 15th in GMP per capita with a 9.4% increase over the past five years. > > 22nd in jobs with a 9.7% increase over the past five years. > > 25th in employment to population ratio with a 2.2% increase over the past five years. Portland s Largest Employers Technology - 16,700 employees Health Care - 9,896 employees Health Care - 14,132 employees Health Care - 9,835 employees Hospital & University - 14,106 employees City of Portland - 9,318 employees US Federal Government - 13,900 employees State of Oregon - 7,559 employees Retail Merchandising - 10,176 employees Athletic Apparel - 7,000 employees COLLIERS INTERNATIONAL P. 23

24 MARKET OVERVIEW Neighborhood Information 2601 SW Waterfront Avenue is moments away from the South Waterfront Neighborhood. Commonly known as SoWa, the South Waterfront neighborhood is a high-rise redevelopment just south of downtown Portland and along the Willamette River. Oregon Health & Science University (OHSU) is based here with state-of-the-art medical offices and labs. Future developments include three new buildings as a result of the $500 million challenge grant put forth by Phil and Penny Knight. The Knights committed to create a new cancer center if OHSU could raise an additional $500 million, which it did. These buildings are expected to be complete by Other land owned by OHSU in the South Waterfront is not included in the city s current 20-year plan and is currently designated undeveloped. The Portland Development Commission (PDC) has been working with ZRZ, the real estate arm of the Zidell family, and the Portland Housing Bureau on an approach to affordable housing for the planned development, which includes more than 1.5 million square feet of mixed use projects in the next 10 years. *Source: movingtoportland.net. COLLIERS INTERNATIONAL P. 24

25 MARKET OVERVIEW Neighborhood Information In addition, Zidell Yards will be a 33-acre mixed-use community consisting of 27 buildings, apartments, retail and corporation headquarters built over the next 10 to 15 years. The first building constructed was a 118-unit apartment building on seven floors named the Emery in honor of Emery Zidell, the company s second generation head. The Emery s retail units are leased by by Lovejoy Bakers, Cha Cha Cha restaurant, Fieldwork Flowers and Greenleaf Juicing Company. South Waterfront has a 2.12 acre park that opened in 2009 named after Elizabeth Caruthers, an early pioneer woman who was one of the first settlers in the southern part of the young city of Portland. The park is on the west side of the development and a beautiful spot for OHSU workers as well as patients to enjoy lunch sitting on one of the benches. The Emery and OHSU Linking OHSU s Marquam Hill Campus to its first building in the river blocks, the Portland s Aerial Tram transports researchers, students, medical professionals, patients and visitors between Portland s foremost medical institution and its newest development. The 3,300-foot tram extends from the main Marquam Hill campus to a terminus at Southwest Gibbs Street and Moody Avenue near the Willamette River.. *Source: movingtoportland.net ZY6, Class A, LEED Gold Creative Office Opening 2018 COLLIERS INTERNATIONAL P. 25

26 MARKET OVERVIEW Local Demographics DISTANCE TO/FROM 424 NE STAFFORD ROAD 1 MILE 3 MILE 5 MILE 2015 Total Population: 20, , , Population: 22, , ,863 Pop Growth : 8.53% 6.65% 6.29% Average Age: HOUSEHOLDS 2015 Total Households: 12,197 87, , SW Water Avenue 2020 Total Households: 13,299 93, ,393 HH Growth : 9.04% 6.93% 6.41% 2015 Median Household Income: $43,410 $53,487 $61, Average Household Size: HOUSING 2015 Median Home Value: $452,386 $425,428 $361, Renter Occupied: 9,086 55,013 93,632 COLLIERS INTERNATIONAL P. 26

27 MARKET OVERVIEW Local Multifamily Market PORTLAND MULTIFAMILY COMMANDS TOP DOLLAR > > Portland s multifamily market remained an investment magnet in the first quarter, when 83 transactions totaled $525M in volume. This amount was on par with Q4 and Q1 of 2015, but the number of transactions was smaller, meaning average deal size increased. > > New supply is beginning to move vacancy upward. Colliers recently introduced survey, shown on page 2, measures metro-area vacancy at 3.8%, while Multifamily NW reports 3.52% in its Spring 2016 report. Vacancy is generally higher in Class A and younger properties, and remains tight in seasoned and value-add locations. > > In Q1 deliveries ranged around units, and Census data shows permitting of 1,609 units. > > Investment values are likely to remain stable for several more years as illustrated by a comparison among interest rates, treasuries, and apartment capitalization rates: Portland Age Demographics 18% xxxxxxxxxxxx - xxxxxxxxxxxxxx 23% 11% 18% 30% Market Indicators Relative to prior period Q Y-O-Y Forecast VACANCY NEW SUPPLY RENTAL RATE* # OF SALES $ VOLUME OF SALES *Rental Rate is the change in metro-wide rents. Rental Rates Effective Rent Per Unit Portland MSA, Y-O-Y Comparison At the end of 2015, Axiometrics reviewed the Federal Reserve s Under 18 increase in the federal funds target rate to 0.25%-0.50% and argued this benchmark will have to increase further before apartment values Millenials are threatened. In support, the firm compared 10-year U.S. treasury rates (T-bill) to Gen X national apartment cap rates. In the long term from 1988 to 2015, Working Baby Boomers the 10Y T-bill averaged 5.6% while the national apartment cap rate averaged 7.0%, showing a spread of 140 basis points (bps) between the Retirement Age and Above two. Per Real Capital Analytics, the 10Y T-bill constant in 2015 was 2.14% and the national multifamily cap rate ended 2015 at 5.93%. The spread here was 379 bps, more than twice the historical average. (Of note, Portland is closely tracking the U.S., ending 2015 with an average 5.6% cap.) When the federal funds rate increases in the future, corresponding T-bill yields will also rise, eventually bringing treasuries into moderate competition with commercial real estate for investors dollars. Fortunately, however, the federal funds rate will have to increase significantly to influence this change, preserving multifamily as a solid investment with strong yields for years to come. > > Beyond Fed activity and T-bill trends, other market participants could influence apartment cap rates over time. $1,200 $1,000 $800 $600 $400 $200 $- $1,130 $1,015 $922 $833 $872 $ Q Q Q Q Q Q1 COLLIERS INTERNATIONAL P. 27

28 > Comparables *Comparable properties are comprised of recently sold, newer construction properties that are similar to what could be developed on the 2601 SW Water Avenue site.

29 COMPARABLE TRANSACTIONS Sale Comparables BLOCK SW 2nd Avenue Portland, OR BUILT: 1991 BUILDING TYPE BUILDING SIZE SALE DATE SALE PRICE CAP RATE Class A Office 361,805 SF 7/30/15 $155,252,000 $429 PSF 4.30% CH2M CENTER 2020 SW 4th Avenue Portland, OR BUILT: 1982 BUILDING TYPE BUILDING SIZE SALE DATE SALE PRICE CAP RATE Class A Office 225,261 SF 5/5/15 $55,000, % $244 PSF CENTRAL EASTSIDE LOFTS 111 NE 6th Avenue Portland, OR BUILT: 2012 BUILDING TYPE # OF UNITS SALE DATE SALE PRICE CAP RATE Class A Apartments 70 1/4/15 $18,945,000 $311 PSF $270,643 per unit 4.82% COLLIERS INTERNATIONAL P. 29

30 COMPARABLE TRANSACTIONS Sale Comparables LOWER BURNSIDE LOFTS 60 SE 20th Avenue Portland, OR BUILT: 2015 BUILDING TYPE # OF UNITS SALE DATE SALE PRICE CAP RATE Class A Apartments 63 2/1/16 $18,500,000 $360 PSF $293,651 per unit 4.30% THE PARKER 1447 NW 12th Avenue Portland, OR BUILT: 2014 BUILDING TYPE # OF UNITS SALE DATE SALE PRICE CAP RATE Class A Apartments 177 3/1/15 $63,500,000 $310 PSF $358,757 per unit unknown PARK NW 19th Avenue Portland, OR BUILT: 2009 BUILDING TYPE # OF UNITS SALE DATE SALE PRICE CAP RATE Class B Apartments 103 3/18/16 $42,500,000 $449 PSF $412,621 per unit 4.00% COLLIERS INTERNATIONAL P. 30

31 COMPARABLE TRANSACTIONS Sale Comparables BURNSIDE E Burnside Street Portland, OR BUILT: 2014 BUILDING TYPE # OF UNITS SALE DATE SALE PRICE CAP RATE Class A Apartments 135 8/4/15 $41,500,000 $437 PSF $307,407 per unit 4.25% THE CORDELLA 808 NW 19th Avenue Portland, OR BUILT: 2014 BUILDING TYPE # OF UNITS SALE DATE SALE PRICE CAP RATE Class B Apartments 135 7/13/15 $47,750,000 $442 PSF $353,704 per unit 4.07% COLLIERS INTERNATIONAL P. 31

32 > Financial Overview

33 FINANCIAL OVERVIEW Property Details ADDRESS: 2601 SW Water Avenue, Portland, Oregon Broker s For Sale Pro Forma Highlights PROJECTED DEVELOPMENT COST $20,451,662 PROJECTED STABILIZED NOI $1,343,857 PROJECTED STABILIZED CAP RATE 4.50% PROJECTED STABILIZED VALUE $29,863,489 PROJECTED STABILIZED YIELD ON COST 6.57% ESTIMATED EQUITY IRR (AT STABILIZATION) 31.86% ESTIMATED GAIN $10,010,480 ESTIMATED EQUITY MULTIPLE 2.63X * Please do not rely on the information provided herein as an example of potential costs and returns. Buyer must perform its own due diligence including financial analysis. COLLIERS INTERNATIONAL P. 33

34 > Transaction Guidelines

35 TRANSACTION GUIDELINES Offering Procedure The offering of 2601 SW Water Avenue is being conducted exclusively by Colliers International. All questions and inquiries should be directed to the Colliers representatives listed in this memorandum. Please address your offers to the brokers listed below. 851 S.W. Sixth Ave., Suite 1200 Portland, Oregon Colliers will be available to assist prospective investors with their review of the offering. On-site inspections of the property and tours of the market area can be arranged directly with Colliers. Offers should include, at a minimum, the following: The purchase price and closing date; The source of capital, both equity and debt, for the transaction; The amount of earnest money deposit; A detailed schedule of the due diligence and requisite approval process; and A description of assumptions utilized for the offer. ALEX CHENG Associate alex.cheng@colliers.com KENNETH VERBECK Associate kenneth.verbeck@colliers.com SKIP ROTTICCI CCIM Vice President skip.rotticci@colliers.com DAVID KOTANSKY Managing Director david.kotansky@colliers.com COLLIERS INTERNATIONAL P. 35

36 TRANSACTION GUIDELINES CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of the Property at 610 SE Spokane Street, Portland, Oregon. It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained by Colliers International from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum from Colliers, you agree: 1) The Offering Memorandum and its contents are confidential; 2) You will hold it and treat it in the strictest of confidence; and 3) You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum. COLLIERS INTERNATIONAL P. 36

37 851 S.W. Sixth Ave., Suite 1200 Portland, Oregon Alex Cheng Associate DIRECT Skip Rotticci CCIM Vice President DIRECT Kenneth Verbeck Associate DIRECT