$450,000. Offering Memorandum th Street SE. Everett, WA Investments Highlights. For More Information Please Contact:

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1 Offering Memorandum $450, th Street SE. Everett, WA Investments Highlights Value-Add opportunity Perfect property for an owner occupant Situated on a large lot that backs up to a lush forest Each unit has a 430 sf garage with washer and dryer and a garage door opener Units are a mirror image of each other, 1,140sf each side, Bd/1.5Ba Wood burning fireplaces On two-thirds of an acre For More Information Please Contact: Robert Wright robertwright@tfgre.com

2 For More Information Please Contact Robert Wright 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 Puget Sound Silver Lake 35th Avenue SE 10 8t h St re et SE th St SE.

5 th St SE.

6 SECTION 1 :: INVESTMENT OVERVIEW Investment Overview The Foundation Group is proud to present this unequaled opportunity for the beginning investor to acquire a piece of cherished Puget Sound multi-family real estate. This large side-by-side duplex is located in an area of million dollar homes and is only a mile east of the Silver Lake shopping district and two miles from Everett Mall, and is five minutes away from I-5 freeway access. It sits on two-thirds of an acre of wooded land that abuts a green belt. The garage is full size, has a half bath, an automatic garage door opener, two full size washers and dryers each side, and is fully wired for electricity. There is a new roof and new hot water heater. The lot has 95 feet of street frontage and is 302 feet deep. In the back, beyond the deck and patio is a backyard akin to the virgin forestland of the Cascades. It even has a creek running through its far end. The property is within minutes of Silver Lake for recreational swinning, kayaking and picknicking. The Everett Walk-in Clinic is nearby, as well as the Silver Lake Shopping Center and its anchoring tenants of Safeway, Bartell Drugs and Bank of America. Several driving minutes beyond that is Evertt Mall and the Regal Cinemas (16 theatre complex). Walmart, Trader Joes and Best Buy are among some of the other retail giants that line Everett Mall way. But the best part is financial. When rented at market, this is an investment will give a true 6.4 cap rate. See Section 3, Financial Summary.

7 SECTION 1 :: INVESTMENT OVERVIEW Quick Facts DUPLEX Price $450,000 Units 2 Rentable Sq.Ft. 2,278 Price Per Sq.Ft. $ Market Cap 6.4% Market GRM Year Built 1981 Costruction Type Laundry Wood Frame In Units Zoning R-9600 Land Sq Ft Parking 28,745sf Garages Notes There are new windows and a new roof. Keybox on unit B which is vacant (rent is proforma). Please do not disturb tenants in unit A. Tenants have occupied unit A for 14 yrs, lease is month-to-month. They own the washer and dryer, and do not have a garage door opener. Full inspection upon mutual acceptance.

8 Interior Photos SECTION 1 :: INVESTMENT OVERVIEW

9 Interior Photos SECTION 1 :: INVESTMENT OVERVIEW

10 SECTION 2 :: SUBMARKET INFORMATION Everett Area Description Just 25 miles north of Seattle, Everett is the largest city in Snohomish County and an integral part of the Seattle Metropoliton area, with its 3.61 million population. The city has a population of 105,370, making it the 7th largest city in the state. Everett is home to the largest public marina on the entire West Coast, which has provided the community with recreation and economic opportunities. Thousands of people visit Everett each year from all over the world. Everett and Paine Field is also home to Paul Allen s flying heritage collection at The Museum of Flight. According to their website, the Port of Everett, formed in 1918, supports more than 35,000 jobs in the area. Based on their economic output, they are Washington States largest port, and the third largest container port. The port opperates 3 lines of business; Real Estate, Seaport, Marina, which creates a diversified job market. The goal is not just to bring jobs and business to the area, but to also bring tourism to local and surrounding communities. The worlds largest building by volume resides in Everett, as stated in The Puget Sound Business Journal. This building is a Boeing assembly plant, which employs over 30,000 people. At this site the company assembles the 747, 767, 777, and 787 airplanes. The Boeing website states that, More than 40 years later, Everett employees are making history again as they manufacture the company s newest twin-aisle airplanes, the 787 Dreamliner and the The United States Navy set up shop in Everett in Naval Station Everett (NSE) is the US Navy s most modern shore installation. The US Navy website states that NSE is currently homeport to two destroyers, The USS Momsen and The USS Shoup, as well as Commander, Carrier Strike Group 11 and Commander, Destroyer Squadron 9. In addition, the base supports a Coast Guard buoy-tender and a Coast Guard coastal patrol boat. The Navy plans to homeport an additional four destroyers to Everett, arriving this year. The NSE employs a diverse demographic of sailors and civilians. Source: Trip Advisor Source: seattlewatching.com

11 SECTION 2 :: SUBMARKET INFORMATION Everett Area Stats RETAIL 1 Everett Mall 2 Fred Meyer 3 Costco 4 Regal Cinemas HEALTHCARE 1 Community Health Center of Snohomish 2 Vista Optical 3 Everett Dental Clinic RECREATION 1 Boys and Girls Club-Snohomish 2 Walter Hall Golf Course 3 Dog Park 4 Kasch Park Athletic Complex 5 Phil Johnson Ballfields Future of Flight Aviation Center and Boing Tour SCHOOLS 4 1 SUBJECT 1 Cascade High School 2 St. Mary's Magdalen Elemen- 3 tary School 3 Montesorri Schools of Sno- 1 homish County 4 Horizon Elementary School

12 SECTION 3 :: FINANCIAL SUMMARY Monthly Rent Unit Unit Type Approx Sq Ft Current Rent Current / Sq Ft Market Rent Market / Sqft A 2bd/1.5ba 1,129 $1,050 $0.92 $1,700 $1.51 B 2bd/1.5ba 1,129 $0 $0 $1,700 $1.51 Utility Billback $0 $140 Laundry $0 $0 Parking $0 $0 Current Market Gross Scheduled Income $12,600 $40,800 5% $378 $1,224 Effective Gross Income $12,222 $39,576 Total Monthly Income $1,050 $3,400 Annual (x12) $12,600 $40,800 Expenses Property Taxes $5,379 $5,379 Insurance $890 $890 Utilities $2,040 $2,040 Maintenence/Repairs $2,350 $2,350 Total Expenses $10,659 $10,659 Net Operating Income $1,941 $28,917 Property Notes Unit B vacant for showing. Keybox. Rents are below market

13 SECTION 3 :: FINANCIAL SUMMARY Rent Comparables * Property Address Building Name Parking $ Year Built Unit Mix Average Size Average Rent Average Rent / Sq ft th Street SE Subject Property $0/Garage /1.5 1,139 $1,050 $ th Ave SE Blu Water Apartments $40/Carport /1 2/1 2/2 3/2 930 $1,509 $ Lake Heights Drive Waterford $55/Carport North Creek Drive The Reserve at Town Center th St SE Everett Duplex $90/carport $190/Garage Included in Rent 1/1 2/1 2/1.5 2/2 3/2 883 $1,513 $ /1 2/1 2/2 3/2 1,067 $1,863 $ /1.5 1,139 $1,700 $1,49 Averages 1,032 sq ft $1,527 $1,50 Blu Water th Ave SE Waterford 2020 Lake Heights Drive The Reserve at Town Center North Creek Drive Everett Duplex th St SE

14 SECTION 3 :: FINANCIAL SUMMARY Rent Comparables SUBJECT WATERFORD 1 * 4 EVERETT DUPLEX 2 BLU WATER 3 THE RESERVE

15 SECTION 3 :: FINANCIAL SUMMARY Rent Comparables 1 Blu Water th Ave SE 2 Waterford 2020 Lake Heights Drive Unit Type Approx Sq Ft Current Rent Current / Sq Ft Unit Type Approx Sq Ft Current Rent Current / Sq Ft 1 Bed / 1 Bath 685 $1,350 $ Bed / 1 Bath 905 $1,410 $ Bed / 2 Bath 950 $1,585 $ Bed / 2 Bath 1,180 $1,690 $1.43 Totals/average 930 $1,509 $ Bed / 1 Bath 663 $1,353 $ Bed / 1 Bath 524 $1,277 $ Bed / 1.5 Bath 853 $1,533 $ Bed / 2 Bath 954 $1,607 $ Bed / 2 Bath 1,135 $1,796 $1.58 Totals/average 884 $1,513 $1.71

16 SECTION 3 :: FINANCIAL SUMMARY Rent Comparables 3 The Reserve at Town Center North Creek Drive 4 Everett Duplex th St SE Unit Type Approx Sq Ft Current Rent Current / Sq Ft Unit Type Approx Sq Ft Current Rent Current / Sq Ft 1 Bed / 1 Bath 743 $1,542 $ Bed / 1 Bath 978 $1,650 $ Bed / 2 Bath 997 $1,762 $ Bed / 1.5 Bath 1,139 $1,700 $1.49 Totals/average $1,700 $ Bed / 2 Bath 1,550 $2,500 $1.62 Totals/average 1,067 $1,863 $1.79

17 SECTION 3 :: FINANCIAL SUMMARY Sales Comparables Property Address Building Name Units Price Sale Date Price / Unit Price / Sq ft Cap Rate GRM th Ave W Everett Duplex 2 $500,000 8/1/2017 $250,000 $ rd St SE Everett Duplex 2 $459,990 3/17/2017 $229,995 $ rd St SE Everett Duplex 2 $420,000 3/10/2017 $210,500 $ Seahurst Ave Everett Duplex 2 $429,995 5/31/2017 $214,998 $ Dexter Ave Everett Duplex 2 $470,000 2/13/2017 $235,000 $ th SW Everett Duplex 2 $411,000 5/3/2017 $205,000 $ Averages $224,248 $

18 SECTION 3 :: FINANCIAL SUMMARY Sales Comparables TH SW DEXTER AVE 5529 SEAHURST AVE RD ST SE RD ST SE TH AVE W SITE *

19 SECTION 4 :: PUGET SOUND REGION Seattle / Puget Sound Metropolitan Seattle is a center of innovation, competition, and entrepreneurship. It is a vibrant metropolis that is continually attracting new people and new businesses. The Seattle area is the nation s 15th largest metropolitan region, and is known for its strong business climate as well as its skilled workforce and top tier educational system. The University of Washington is among the top higher learning institutions in the nation, ranked 11th globally by US News and World Report. Seattle University is a wellknown Jesuit university situated on 48 acres in Seattle s First Hill, and has one of the finest law schools in the country. Bastyr University is located in Kenmore, and is one of the world s leading academic centers for the advancement of knowledge in the natural health sciences. A 36-year pioneer in natural medicine, Bastyr continues to be in the forefront of developing the model for 21st century medicine. It has a sister campus in San Diego, the only accredited naturopathic medical institution in California. Greater Seattle has the distinction of being the birthplace of creative innovation, from aerospace to cancer research. While the Boeing Company is an important world leader in aviation and space technology, it is no longer the backbone of Puget Sound s economy. There are over 800 aerospace firms that call Seattle home. Also on the leading edge of world technology are businesses like Microsoft, Amazon, Virginia Mason, Fred Hutch, Weyerhaeuser, the Bill and Melinda Gates Foundation, Google, REI, Expedia the list goes on and on. The Seattle Metro area excels not only in business and technology, but also in bio-technology, with such firms as Seattle Genetics, Juno Therapeutics, Nano String Technologies, and Adaptive Biotechnologies, to name a few. Just last year Juno shelled out $80 million in cold cash to buy a German cell therapy company. And they are all hiring! But perhaps more importantly, Seattle is also a leader when it comes to quality of life. How many other places are there in the world where you can get off work early on a Friday, hop in the elevator on the 40th floor and be snapping into your skis forty-five minutes later? Or shouldering your back pack at the start of a deep woods trail. Or sky diving. Or sailing. Golf. Again the list goes on. According to Forbes Magazine, Seattle is one of the most popular cities in the country for the millennial generation (ages 20-34), with a growth rate of 20.3% during the past ten years, primarily due to the abundance of tech, engineering, and biotechnology firms, both existing and start-up. The temperate climate of Puget Sound lets residents and visitors enjoy the out-of-doors year round. The average temperature in the summer months is 75 degrees, while in winter the thermometer only dips to freezing for an average of 15 days. Another thing the fact that it continually rains in Seattle is not a fact. It s a myth, perpetrated perhaps by those who want to frighten away tourists and out-of-towners. In reality it rarely rains heavily at all. The total average rainfall is a mere 35 inches, less than New York City and Miami. And often when it does rain it s only a mist, with the sun shining at the same time. Seattle is also a wonderful center for sports, both professional and amateur, with the Seahawks, Sounders, and Mariners leading the way. Not too far behind are the thoroughbreds of Emerald Downs. On the amateur side, it s not uncommon to drive home from work and find that you re sharing the road with cyclists, both commuters and recreationalists. The region consists of approximately 4 million residents in the combined regions of King, Snohomish, Pierce, and Kitsap counties. In the last ten years alone Puget Sound has added nearly 400,000 jobs to the economy, with the trend expected to continue over the next ten years. In 2016 alone, 61,300 payroll jobs were added.

20 The Foundation Group is a premier Seattle commercial real estate company providing a broad range of services including property management, investing, brokerage and consulting. Not all commercial real estate companies are the same. The Foundation Group believes it is important to intimately know the individual goals of our clients and to provide individual commercial real estate investing plans to achieve them. The Foundation Group holds the prestigious AMO designation for property management companies, granted by the Institute of Real Estate Management. A firm must demonstrate the highest standards of professionalism, financial performance and ethics to earn this coveted designation held by only 500 firms in the United States and Canada. We are result and goal-oriented for our clients. Talk with us today and learn first-hand why The Foundation Group is one of the best Seattle commercial real estate companies. Acquisition & Disposition From buyer and tenant representation to owner and landlord representation, The Foundation Group s Seattle commercial real estate brokerage team engages with every client in a goal-oriented manner. The Foundation Group works as a team to customize a marketing approach and strategy that s best suited to achieve the client s goals. The result is premier Seattle commercial real estate brokerage services with a difference. Consulting Services The Foundation Group provides Seattle commercial real estate consulting and advisory services for investors. We apply systematic market research and financial analysis to product feasibility solutions for all types of real estate projects. Investment Partnerships 1The Foundation Group has more than three decades of experience forming successful partnerships for Seattle commercial real estate investing. Our financial expertise and professional management allows individuals, families, partnerships and trusts to invest in income producing properties without needlessly worrying about their day-to-day operations. The Foundation Group offers a full compliment of Seattle commercial real state investing services, including consulting, brokerage, development and propriety management. Consulting 2The Foundation Group provides consulting and advisory services for investors. We apply systematic market research and financial analysis to produce feasible solutions for all types of commercial real estate investing projects.

21 For More Information Please Contact Robert Wright Eastlake Ave E Seattle, WA