OFFERING MEMORANDUM 160+ UNIT DEVELOPMENT OPPORTUNITY CALL FOR OFFERS $3,300,000 $73.48 PSF 1506 MAIN STREET, VANCOUVER, WA HUTTON BLOCK

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1 OFFERING MEMORANDUM 1506 MAIN STREET, VANCOUVER, WA CALL FOR OFFERS $3,300,000 $73.48 PSF 160+ UNIT DEVELOPMENT OPPORTUNITY

OFFERING MEMORANDUM Table of Contents INVESTMENT SUMMARY PAGE 3 PROPERTY INFORMATION PAGE 5 MARKET OVERVIEW PAGE 9 COMPARABLES PAGE 18 TRANSACTION GUIDELINES PAGE

Washington. It has been prepared by Colliers International.

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.

contact the following Colliers International professionals: Sean Worl Senior Associate Skip Rotticci CCIM Vice President Alex Cheng Associate Kenneth Verbeck

2 OFFERING MEMORANDUM Table of Contents INVESTMENT SUMMARY PAGE 3 PROPERTY INFORMATION PAGE 5 MARKET OVERVIEW PAGE 9 COMPARABLES PAGE 18 TRANSACTION GUIDELINES PAGE 25 Exclusive Advisors This Offering Memorandum contains select information pertaining to the business and affairs of the Property at 1506 Main Street, Vancouver, Washington. 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. For further information regarding the purchase and sale of this asset, to register to receive due diligence materials, schedule a tour, or to submit a bid, please contact the following Colliers International professionals: Sean Worl Senior Associate Skip Rotticci CCIM Vice President Alex Cheng Associate Kenneth Verbeck Associate DIRECT DIRECT DIRECT direct sean.worl@colliers.com skip.rotticci@colliers.com alexander.cheng@colliers.com kenneth.verbeck@colliers.com 851 S.W. Sixth Ave., Suite 1200 Portland, Oregon COLLIERS INTERNATIONAL P. 2

3 > Investment Summary

INVESTMENT HIGHLIGHTS Investment Summary The Hutton Block located at 1506 Main Street, Vancouver, Washington offers a unique opportunity to acquire a full block development site in downtown

4 INVESTMENT HIGHLIGHTS Investment Summary The Hutton Block located at 1506 Main Street, Vancouver, Washington offers a unique opportunity to acquire a full block development site in downtown Vancouver, Washington. The site is zoned CX-City development. The property is approximately 44,911 square feet and is ideally located between the Central Business District (CBD) and the Main Street Uptown District. The Hutton Block has been approved for twelve year property tax abatement by the city of Vancouver. Offering significant operating expense savings to the eventual developer. 257th Drive SE Powell Valley Rd Downtown Vancouver is currently experiencing a renaissance with a substancial amount of new multifamily, retail, and commercial development occurring downtown, and along its waterfront. The Hutton Block site is conveniently located in and is in easy walking distance to employment centers, retail, restaurants, shops and services. This site is relatively flat with no encumbrances. The current owner has agreements wit the City of Vancouver to relocate the existing sewer easement to the street allowing for much greater development yields than previously anticipated. All other essential utilities including water, private utilities, sewer and storm water are located adjacent to the site. COLLIERS INTERNATIONAL P. 4

5 > Property Information

PROPERTY INFORMATION Site Details 1506 M PRODUCT TYPE: Multifamily Mixed Use ADDRESS: 1506 Main Street, Vancouver, Washington GROSS LAND AREA: 44,911 PRICE: $3,300,000 $73.48 PSF Approx.

6 PROPERTY INFORMATION Site Details 1506 M PRODUCT TYPE: Multifamily Mixed Use ADDRESS: 1506 Main Street, Vancouver, Washington GROSS LAND AREA: 44,911 PRICE: $3,300,000 $73.48 PSF Approx. $20,625 per Unit PROPERTY TAX: Approved for 12 year property tax abatement YEAR BUILT: To Be Determined CONSTRUCTION: Proposed as Wood Frame over podium HEIGHT LIMIT: 75 ft ft. APN: , , , , & UPTOWN VANCOUVER * Example of typical construction type being built two blocks north of subject site. COLLIERS INTERNATIONAL P. 6

7 PROPERTY INFORMATION 15th Street Main Street Hutton Block Clark College Mill Plain Park Waterfront Development Fort Vancouver SE Burnside Road COLLIERS INTERNATIONAL P. 7

8 PROPERTY INFORMATION COLLIERS INTERNATIONAL P. 8

9 > Market Overview

MARKET OVERVIEW FAVORABLE BUSINESS CLIMATE > Washington does not impose a corporate income tax, personal income tax, unitary tax, nor does it tax dividends, interest, or capital gains.

UTILITIES > The primary electric power supplier in Clark County, Clark Public Utilities, is a public, cost-of-service provider that offers some of the most competitive power prices in the United

10 MARKET OVERVIEW FAVORABLE BUSINESS CLIMATE > Washington does not impose a corporate income tax, personal income tax, unitary tax, nor does it tax dividends, interest, or capital gains. > In the Tax Foundation s 2014 State Business Tax Climate Index, Washington ranked #12 in the US. > Business friendly jurisdictions with local incentives and assistance programs. UTILITIES > The primary electric power supplier in Clark County, Clark Public Utilities, is a public, cost-of-service provider that offers some of the most competitive power prices in the United States. In 2014 the average industrial rate was 5.58 cents p/kwh. > The County also benefits from an extensive fiber-optic network, designed to meet the needs of the most demanding industries. WORKFORCE > Approximately 60,000 workers commute to Portland to work. In a recent transportation survey, 80 percent of commuters would readily take a job in Clark County, if available, to reduce commute time and avoid the Oregon income tax. AFFORDABLE HOUSING > The median home value for a single family house in Clark County, WA, was $214, 300 (2014). COST OF LIVING > Clark County s cost of living is indexed at 102.9, lower than Seattle (126.9), San Francisco (167.5), and San Diego (135.4) metropolitan areas. SOURCE: COLUMBIA RIVER ECONOMIC DEVLEOPMENT COUNCIL COLLIERS INTERNATIONAL P. 10

MARKET OVERVIEW > Vancouver, Washington Vancouver, Washington sits on the north bank of the Columbia River directly across from Portland, Oregon.

> THE PACIFIC COAST is less than 90 miles to the west. > The CASCADE MOUNTAIN RANGE rises on the east. > MOUNT ST. HELENS NATIONAL VOLCANIC MONUMENT AND MT.

11 MARKET OVERVIEW > Vancouver, Washington Vancouver, Washington sits on the north bank of the Columbia River directly across from Portland, Oregon. Vancouver combines the excitement of a major metropolitan area with small-town charm and abundant recreational opportunities. > THE PACIFIC COAST is less than 90 miles to the west. > The CASCADE MOUNTAIN RANGE rises on the east. > MOUNT ST. HELENS NATIONAL VOLCANIC MONUMENT AND MT. HOOD are less than two hours away. > The spectacular COLUMBIA RIVER GORGE National Scenic Area lies 30 minutes to the east. SOURCE: CITY OF VANCOUVER COLLIERS INTERNATIONAL P. 11

MARKET OVERVIEW > Vancouver, Washington Live, Work &

Since 2000 Over 33 High Tech Businesses 3,450 Parking

12 MARKET OVERVIEW > Vancouver, Washington Live, Work & Play Over 1,110+ Businesses 600 People Walk, Bike or Carpool Every Day 2.8 miles of Bike Lanes & Trails $153 Million Invested Since 2000 Over 33 High Tech Businesses 3,450 Parking Spaces Largest Employment Center in Clark County with 14,823+ Jobs COLLIERS INTERNATIONAL P. 12

MARKET OVERVIEW > Tech on the Rise The Innovation Partnership Zone (IPZ) is an initiative designed to grow and support tech companies

education and local governments and agencies.

breweries, restaurants, food trucks and vibrant public spaces that help firms recruit and retain top tech talent.

In the East Vancouver/Camas Employment Center, the IPZ focus on mature tech businesses to create meaningful connections to education

13 MARKET OVERVIEW > Tech on the Rise The Innovation Partnership Zone (IPZ) is an initiative designed to grow and support tech companies located in downtown Vancouver and the East Vancouver/Camas Employment Center by cultivating partnerships between private business, education and local governments and agencies. The IPZ in downtown Vancouver is working to grow its tech cluster by supporting complementary businesses the coffee shops, bars, breweries, restaurants, food trucks and vibrant public spaces that help firms recruit and retain top tech talent. Since the formation of the IPZ in 2013, brewpubs and taprooms, as well as tech firms, have proliferated downtown Vancouver. In the East Vancouver/Camas Employment Center, the IPZ focus on mature tech businesses to create meaningful connections to education through mentorships, projectbased learning and employment for students. Partnerships with Camas School District, Clark College and Washington State University Vancouver are helping to create a homegrown, qualified tech workforce. COLLIERS INTERNATIONAL P. 13

14 MARKET OVERVIEW 4.4% UNEMPLOYMENT RATE* Named one of the Top 5 Cities for High Tech by The Atlantic Portland is an enduring technology hub* 20 Portland s high-tech employment is 20% greater than tech-centric Austin* #5 city for job growth in 2015 by Forbes Magazine. Live, Work, Play > Portland 5Ranked the *GREATER PORTLAND WORKBOOK % of the working population in Portland has a bachelor s of arts degree or higher* COLLIERS INTERNATIONAL P. 14

15 MARKET OVERVIEW Live, Work, Play > Portland PORTLANDERS AT A GLANCE Enjoys flexibility and choice of retail, dining and entertainment PORTLAND, OREGON #1 More people packed up and moved to Oregon than moved away Community-driven, motivated and inspired by collaborative space Desires balance, a comfortable blend of work and play Appreciates accessibility of public transit 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 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 COLLIERS INTERNATIONAL P. 15

16 MARKET OVERVIEW POPULATION EMPLOYMENT HOME SALES HOME VALUES RETAIL SALES Projected Trends for 2017 UNEMPLOYMENT COLLIERS INTERNATIONAL P. 16

MARKET OVERVIEW City of Portland Crisscrossed by rivers, mountains and vineyards, Metropolitan Portland offers more than urban adventure.

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.

transportation system, are just few of the reasons Portland is one of the country s most livable cities.

17 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 Portland is 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 2014 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. Multnomah County named one of nation s top markets for renting to millennials - Portland Business Journal Portland listed in the most recent 10 Hottest Apartment Markets -Multifamily Executive Portland one of the Top 10 Occupancy Markets and ranked #7th in Top 10 Apartment Boomtowns for Multifamily Executive Estimated population growth by the year 2035 is 725,000 - US Census Bureau COLLIERS INTERNATIONAL P. 17

18 > Comparables

19 RENT & SALE COMPARABLES Rent Comparables COLLIERS INTERNATIONAL P. 19

20 RENT & SALE COMPARABLES Rent Comparables COLLIERS INTERNATIONAL P. 20

21 FINANCIAL OVERVIEW Rent Comparables $3.00 Rent/SF $ Bdr 1 Bth - Rent/SF $2.50 $2.50 $2.00 $2.00 $1.50 $1.50 $1.00 $1.00 $0.50 $0.50 $0.00 Platform 14 The Linden North Harbour Vista Rent/SF Prestige Plaza The Addison Arbada Pointe Average $- Platform 14 The Linden North Harbour Vista 1 Bdr 1 Bth - Rent/SF Average Prestige Plaza The Addison Arbada Pointe Bdr 2 Bth - Rent/SF $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $ Bdr 2 Bth - Rent/SF 0.00 Platform 14 The Linden North Harbour Vista 2 Bdr 2 Bth - Rent/SF Average Prestige Plaza The Addison Arbada Pointe $- Platform 14 The Linden North Harbour Vista 3 Bdr 2 Bth - Rent/SF Average Prestige Plaza The Addison Arbada Pointe COLLIERS INTERNATIONAL P. 21

22 FINANCIAL OVERVIEW Rent Comparables $3.00 Rent/SF $ Bdr 1 Bth - Rent/SF $2.50 $2.00 $2.00 $1.50 $1.50 $1.00 $1.00 $0.50 $0.50 $0.00 Columbia View Apartments The Grove Rent/SF Lewis Ridge Apartments Average Midtown Yacht Harbor Club $- Columbia View Apartments The Grove Lewis Ridge Apartments Midtown Yacht Harbor Club 1 Bdr 1 Bth - Rent/SF Average Bdr 2 Bth - Rent/SF $ Bdr 2 Bth - Rent/SF 2.00 $1.20 $ $ $0.60 $ $ Columbia View Apartments The Grove Lewis Ridge Apartments 2 Bdr 2 Bth - Rent/SF Average Midtown Yacht Harbor Club $- Columbia View Apartments The Grove Lewis Ridge Apartments 3 Bdr 2 Bth - Rent/SF Average Midtown Yacht Harbor Club COLLIERS INTERNATIONAL P. 22

23 RENT & SALE COMPARABLES Sale Comparables COLLIERS INTERNATIONAL P. 23

24 FINANCIAL OVERVIEW Sale Comparables $350, Price Per Unit 7.00% Cap Rate $300, % $250, % $200, % $150, % $100, % $50, % $0.00 Platform 14 The Linden No Harbour Vista Pristige Plaza The Addison 0.00% Platform 14 The Linden No Harbour Vista Pristige Plaza The Addison Price Per Unit Average Cap Rate Average COLLIERS INTERNATIONAL P. 24

25 > Transaction Guidelines

TRANSACTION GUIDELINES Offering Procedure The offering of 1506 Main Street Vancouver, Washington is being conducted exclusively by Colliers International.

26 TRANSACTION GUIDELINES Offering Procedure The offering of 1506 Main Street Vancouver, Washington is being conducted exclusively by Colliers International. All questions and inquiries should be directed to the Colliers representatives listed in this memorandum. 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. All prospective purchasers can receive the due diligence materials by contacting any one of the listing brokers to register and receive a Confidentiality Agreement. Once a signed Confidentiality Agreement is received prospective buyers will receive a link to the due diligence material folders. Please address your offers to the brokers listed below. SEAN WORL Senior Associate sean.worl@colliers.com ALEX CHENG Associate alexander.cheng@colliers.com S.W. Sixth Ave., Suite 1200 Portland, Oregon SKIP ROTTICCI CCIM Vice President skip.rotticci@colliers.com KENNETH VERBECK Associate kenneth.verbeck@colliers.com 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 statement agreeing to the due diligence, Purchase and Sale Agreement, and closing processes; and A description of assumptions utilized for the offer. COLLIERS INTERNATIONAL P. 26

27 TRANSACTION GUIDELINES CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of the Property at 1506 Main Street, Vancouver, WA. 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. 27

28 851 S.W. Sixth Ave., Suite 1200 Portland, Oregon Sean Worl Senior Associate Skip Rotticci CCIM Vice President Alex Cheng Associate Kenneth Verbeck Associate DIRECT DIRECT DIRECT DIRECT

THE BURLINGAME APARTMENTS OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 1

THE BURLINGAME APARTMENTS OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 1 COLLIERS INTERNATIONAL P. 1 OFFERING MEMORANDUM Table of Contents INVESTMENT SUMMARY PAGE 3 PROPERTY INFORMATION PAGE 6 MARKET OVERVIEW PAGE 9 COMPARABLES PAGE 14 FINANCIAL OVERVIEW PAGE 18 Exclusive Advisors