OSLO APARTMENTS $3,950,000. Offering Memorandum NW 53rd Street Seattle, Washington Investment Highlights. Hip waterfront neighborhood

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1 $3,950,000 OSLO APARTMENTS 1525 NW 53rd Street Seattle, Washington Offering Memorandum Investment Highlights Hip waterfront neighborhood Building built in 1989, washer/dryer in all units, copper plumbing/modern equipment New roof and windows, 2003 Close to trendy restaurants, indie shops, bars and craft breweries Turnkey investment Covered, controlled access parking Covered balconies

2 For More Information Please Contact Bruce Kahn Michael Kahn The information included in this document has been obtained from sources we believe to be reliable. While we do not doubt its accuracy, we have not verified it and cannot make any guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions, or estimates used are for example only and may not accurately represent the current or future performance of the property. The value of any proposed transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs Eastlake Ave E Seattle, WA

3 Contents Investment Overview Submarket Information Financial Summary Puget Sound Regional Information

4 SECTION 1 :: INVESTMENT OVERVIEW Investment Overview The Foundation Group is pleased to exclusively offer for sale The Oslo Apartments, a 9-unit building in the centrally located trendy, bustling Ballard neighborhood of Seattle. The property provides an opportunity to buy a well built asset in one of the fastest growing areas of Seattle. The Oslo was built in 1989 and units have been updated upon turnover, with 8 of the 9 units having modern finishes. Every unit has a washer and dryer and there is a private elevator to the owner's suite (currently inoperable). Ground floor covered, controlled access parking space for 9 compact vehicles. There is also storage for maintenance in the garage. The back part of the property has the development potentital for an outdoor tenant amenity. The current owners have done an impeccable job of maintaining the condition of the building. This low maintenance asset is positioned well to capitalize on the future rent growth in the Seattle marketplace. The building is close to Swedish Ballard, NW Market, Ballard Ave, Leary Way, Fremont, Queen Anne, Magnolia, Adobe, SPU, cafes, grocery stores, bars, and restaurants. The Oslo is a straight shot to downtown and only steps from Metro Rapid Ride D, 15X, 44, 17.

5 SECTION 1 :: INVESTMENT OVERVIEW Quick Facts Price $3,950,000 Units 9 Rentable Sq.Ft. 6,324 Building Sq. Ft. 9,130 Price Per Sq.Ft. $433 Price Per Unit $438,889 Current Cap 3.94% Market Cap 4.37% Current GRM Market GRM Year Built 1989 Laundry Parking In-unit 9 covered Land Sq. Ft. 5,000 Zoning Construction Type LR3 Wood Frame

6 SECTION 2 :: SUBMARKET INFORMATION Ballard Area Description Ballard is a hip waterfront neighborhood with trendy restaurants, indie shops, bars and craft breweries centered on historic Ballard Avenue. Ships and salmon pass through the Hiram M. Chittenden Locks, or Ballard Locks, also a popular picnic spot. The sandy beach at Golden Gardens Park draws sunbathers and volleyball players and offers mountain views. The Nordic Heritage Museum displays the area s Scandinavian roots. In recent years, new development in the area has brought a younger resident profile to Ballard that's been attracted by the community's fine dining, eclectic nightlife, quality of life, retail amenities, and close proximity to downtown Seattle. With a Walk Score of 95, residents of The Oslo Apartments can accomplish a majority of their daily errands on foot. Every Sunday during the year, the Ballard Farmer s Market is open for business. Ballard Avenue is closed down to make room for local growers and vendors, plus a variety of artists selling their wares, from jewelry to furniture. This is one of the few year-round markets in the city, and since the selection is always changing, it s easy to make it a weekly stop.

7 SECTION 3 :: FINANCIAL SUMMARY Scheduled Income Bdrms/ Baths Unit # Sq Ft Current Rent Current / Sq Ft Market Rent Market / Sqft 2/ $1,745 $2.49 $2,000 $2.86 2/ $1,700 $2.43 $2,000 $2.86 2/ $1,995 $2.42 $2,100 $2.55 2/ $1,975 $2.55 $2,000 $2.58 2/ $1,895 $2.45 $2,000 $2.58 2/ $1,995 $2.42 $2,100 $2.55 2/ $2,000 $2.86 $2,050 $2.93 2/ $2,300 $2.09 $2,750 $2.50 1/ $1,325 $2.41 $1,375 $2.50 Totals 9 6,950 $16,930 $2.44 $18,375 $2.64 Current Market Total Monthly Scheduled Rent $16,930 $18,375 Utility Bill Back $960 $960 Parking Income $425 $425 Other Income (Pet) $160 $160 Total Montly Income $18,475 $19,920 Annual Scheduled Gross Income $221,700 $239,040 Property Notes & Assumptions One 1 Bedroom, Eight 2 Bedroom Rent Roll as of February 1, 2018 Nine covered, controlled access parking spaces for compact vehicles

8 SECTION 3 :: FINANCIAL SUMMARY Annualized Operating Data Current Market Gross Scheduled Rent $221,700 $239,040 Less Physical Vacancy ($6,651) 3.0% ($7,171) 3.0% Gross Operating Income $215,049 $231,869 Less Expenses ($59,376) 26.78% ($59,376) 24.84% Net Operating Income $155,673 $172,493 Less Loan Payments ($140,900) ($112,514) Debt Service Coverage Ratio Pre-Tax Cash Flow $14, % $59, % Plus Principle Reduction $36,147 $36,147 Total Return Before Taxes $50, % $96, % Annualized Expenses Current Market W/S/G $11,000 $11,000 Electric $620 $620 Telephone $300 $300 Taxes $24,806 $24,806 Maintenance Requests $11,250 $11,250 Management $8,000 $8,000 Insurance $3,400 $3,400 Total $59,376 $59,376

9 SECTION 3 :: FINANCIAL SUMMARY Sales Comparables Property Address Building Name Units Price Sale Date Price / Unit Price / Sq ft Cap Rate GRM E Mercer Street 1300 E Mercer St 8 $4,525,000 09/08/2017 $565,625 $ % Yale Avenue E Laurey Ann 6 $2,600,000 06/14/2017 $433,333 $ % Phinney Avenue N 6408 Phinney Ave N 7 $2,250,000 08/04/2017 $321,428 $ % Woodland Park Avenue N Audrey Apartments 16 $4,250,000 01/11/2018 $265,625 $ % 0.0 Averages $396,503 $ % E Mercer St 1300 E Mercer Street Laurey Ann 2529 Yale Avenue E 6408 Phinney Ave N 6408 Phinney Avenue N Audrey Apartments 3617 Woodland Park Avenue N

10 SECTION 3 :: FINANCIAL SUMMARY Sales Comparables 6408 PHINNEY AVE N THE OSLO 3617 WOODLAND PARK AVE N 2529 YALE AVE E 1300 E MERCER ST

11 SECTION 4 :: SEATTLE / PUGET SOUND REGION Seattle / Puget Sound Seattle is the largest city in the state of Washington with an estimated population of 713,700 as of The Seattle metropolitan area, also known as The Puget Sound, is comprised of King, Pierce and Snohomish County; as an MSA it s the 15th largest metropolitan in the United States with a population of approximately 3.8 million people. Seattle has a thriving local economy and is home to five of Fortune 500 s 2017 list, including Amazon, Starbucks, Nordstrom, Expeditors International, and Weyerhaeuser. In addition the area is home to other notable Fortune 500 companies such as Costco, Microsoft, Paccar, Nintendo, T-Mobile, Expedia, and Providence Health & Services. Along with tech companies such as Expedia, Zillow, Tableau, and Zulily, Seattle is quickly establishing itself as a national tech hub as companies from Silicon Valley ranging from Google to Facebook open offices in an attempt to draw on the talented pool of tech workers living in and moving to the area. In 2017, Zillow ranked Seattle as the second hottest housing market in the nation for appreciation. Similarly, Redfin also ranked Seattle as the second hottest housing market behind Denver, where the average days on market of a listing is eight and median sales price growth year over year is 7.5%. Much of this growth comes from the hot job market in Seattle, ranked as the fourth best in the nation Currently, the year to date in-migration to the Puget Sound, based on driver s license data for January through May, shows 49,656 people have moved into the area. On an annual basis, the 12-month moving average of monthly in migration is approximately 10,000 people. Annually that puts more than 120,000 people moving into the Puget Sound region; though this does not account for people moving out of the region, the bottom line is the area has and will continue to grow at a rapid pace making the rental market as strong as it s ever been.

12 For More Information Please Contact Bruce Kahn Michael Kahn Eastlake Ave E Seattle, WA