TACOMA, WASHINGTON CAPITAL MARKETS NORTH WEST EXECUTIVE SUMMARY

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1 TACOMA, WASHINGTON CAPITAL MARKETS NORTH WEST EXECUTIVE SUMMARY

2 THE OFFERING Colliers International, as Exclusive Advisor, is pleased to present the opportunity to acquire Tacoma Financial Center (TFC) or (the Property ) located in the heart of Downtown Tacoma, Washington. Originally constructed in 1985, The Property is a 17-story building totaling 195,494 square feet situated on a 0.61 acre parcel. TFC is a multi-tenant, Class A office asset, and is currently 84.83% leased to 21 tenants TFC is located in the heart of the downtown Tacoma submarket of the Puget Sound region of Washington. The Property features excellent access to major freeways and public transportation, and numerous local dining and amenity options. The offering presents investors the unique opportunity to acquire a strategically located office investment in an increasingly strong market with in place income from a diversified rent roll and upside potential. PROPERTY DESCRIPTION Address: 1145 Broadway Plaza, Tacoma, WA, APN: Total Building Area: 195,494 Total Site Area: Product Type: Zoning: Parking: 0.61 acres Office DCC Downtown Commercial Core 72 stalls Year Built: 1985 Occupancy: 84.83% FINANCIAL HIGHLIGHTS Year 1 NOI $3,083,562 Year 2 NOI $3,180,249 EXISITING LOAN SUMMARY Current Loan Balance $23,009, Interest Rate 5.134% Maturity Date 1/6/24 Assumption Fee 0.5% 1 TACOMA FINANCIAL CENTER

3 INVESTMENT HIGHLIGHTS STRONG IMMEDIATE INCOME WITH VALUE ADD OPPORTUNITY The property provides immediate cash flow from a diverse tenant roster, whilst significant income appreciation can be achieved above the current In place NOI of $3,083,562 by marking-to-market the 19,780 SF of leasable space expiring in Year 1, 53,614 SF in Year 2, and 5,660 SF in Year 3. RARE OPPORTUNITY TO ACQUIRE A QUALITY HIGH-RISE ASSET IN TACOMA S CENTRAL BUSINESS DISTRICT One of only five class A assets in downtown Tacoma, Tacoma Financial Center represents an opportunity to purchase an institutional quality building in the economic anchor of South Puget Sound. With average floor plates of approximately 12,000 SF, a central core, abundant natural light and views of Mount Rainier, the Olympics, cascade Mountains and commencement Bay, Tacoma Financial Center is uniquely positioned to accommodate both small and large firms. Significant credit tenants include US Bank, Wells Fargo Advisors, Franciscan Health System, UBS and the Federal Bureau of Investigation. PREMIER LOCATION IN DOWNTOWN TACOMA Within walking distance of numerous restaurants, banks, museums, eclectic shops, the waterfront and University of Washington s Tacoma campus, Tacoma Financial center is also adjacent to the city s main transit line where tenants can catch the bus or link light Rail which runs from the Tacoma Dome, through the heart of downtown, to the Theater District. TFC is easily accessible from Interstate 5 and has excellent arterial ingress and egress. BELOW REPLACEMENT COST Increasing construction costs and land values, coupled with a lack of available land and entitlement challenges have created barriers to new development. Demand for quality office space is anticipated to strengthen as there is no Class A office co nstruction un derway in th e do wntown co re. Th is pr operty is ex pected to se ll approximately 50% below total replacement cost. TACOMA S NEIGHBORING CITY OF SEATTLE CONTINUES TO THRIVE AS THE NEW CRANE CAPITAL OF THE U.S. The combination of Seattle s technology boom, the surge in the housing market, over 5 million square feet of new construction, and the record high population growth is driving Seattle among the ranks of top tier markets in the U.S. As rents are soaring and building values appreciate rapidly, developers are seeing record high profits and better returns on Seattle high-rises than what could be found in stocks or more traditional assets. The expansion of the Link light-rail will also be a significant game changer for the region. Commutes between Tacoma/Seattle will be more efficient as major companies and young startups continue to spill over into the surrounding area. EXECUTIVE SUMMARY 2

4 DYNAMIC ECONOMIC DATA Fueled by technology and aerospace fulfillment companies, the Seattle-Tacoma region is quickly becoming one of the strongest economies in the U.S. Notable companies include Amazon, Microsoft, and Boeing. Job growth is on the rise as well with an increase of 1.86 % in the last 12 months. Tacoma-Pierce County was ranked #20 on the best places for businesses and careers in the US by Forbes. The city broke ground on 640 residential units in 2016 and will be adding an additional 1,200 units in STRONG MARKET FUNDAMENTALS Tacoma is the economic engine of South Puget Sound and home to Joint Base Lewis-McChord, one of only 12 joint military bases in the world, the Port of Tacoma, the fourth largest container gateway in North America, the Boeing Company, Amazon.com, Multicare Health System, and Franciscan Health System. Net absorption for Q4 of 2016 surpassed 1.4 million SF as Amazon moved into its second 1 million SF tower and also opened up the 383,476 SF south tower at the Troy Block. There is 5.8 million SF of office currently under construction in the Seattle/Puget Sound region. As of December 2016, 57% of this space is already pre-leased. SUMMARY OF MAJOR TENANTS TENANT INDUSTRY LEASED RSF RENT/MO % OF BUILDING EXPIRATION DATE Centene Healthcare 52,782 $97, % 7/31/2021 CHI Franciscan Health Healthcare 25,748 $50, % 9/30/2018 US BANK Finance 15,477 $31, % 11/30/2018 FBI Security 12,000 $32, % 8/20/2028 RSM US LLP Finance 11,979 $25, % 12/31/2017 UBS Finance 9,783 $23, % 2/28/ TACOMA FINANCIAL CENTER

5 WASHINGTON STATE ECONOMIC OVERVIEW & FORECAST The Washington State economy is rapidly expanding. Washington employment has grown faster than expected as personal income has also steadily inclined. The housing market continues to improve at a slow pace and oil prices have remained low, freeing up other consumer resources. Real GDP rose 2.1% (SAAR) in the fourth quarter pushing 2016 growth to 1.6%. Revenue collections have come in $163 million over the November forecasted amount. The unemployment rate has remained to hover around 4.7%. Personal income grew 4.3% (SAAR) in February from 5.6% (SAAR) the month before. Small business confidence has also grown in Washington due to a combination of increase in business conditions, expansion, sales, and earnings. Going forward, the economic outlook for Washington is slightly stronger than the fourth quarter forecast. A GDP growth of 2.3% is expected in 2017, up from 2.2% in November. GDP is expected to increase to 2.4% by Major U.S. trading partners are also expected to grow this year. The March forecast calls for GDP of U.S. trading partners to grow 2.5% in 2018 and 2.6% in Net exports are expected to reduce GDP growth by 0.3 percentage points on average through Source: Washington State Economic and Revenue Forecast Council March 2017 Report EXCEPTIONAL TALENT AND DEMOGRAPHIC PROFILE As a main business location, the greatest advantage for the Greater Seattle area and Puget Sound Region is its highly educated and skilled population. The Seattle-Tacoma Area is quickly becoming one of the top ranking go-to cities for tech and science, hence Tacoma s new nickname, T-town. With an innovation mindset and consistently positive increase in population and income, the Greater Seattle-Puget Sound-Tacoma region is a constant generator of new ideas and businesses. GREATER SEATTLE AREA SNAPSHOT 3.8 MILLION RESIDENTS 45% COLLEGE EDUCATION #1 BEST AREA FOR TECH JOBS (FORBES) $79,000 MEDIAN HOUSEHOLD INCOME 4.8% UNEMPLOYMENT / JOB GROWTH 3.1 % ANNUALLY HIGHEST ANNUAL MEAN WAGE FOR PROGRAMMERS IN THE US EXECUTIVE SUMMARY 4

6 TACOMA FINANCIAL CENTER TACOMA, WASHINGTON EXCLUSIVE INVESTMENT ADVISORS BOB GILLEY EXECUTIVE VICE PRESIDENT CA. LIC KEVIN MOUL, SIOR SENIOR VICE PRESIDENT CA LIC JOE HIGGINS FINANCIAL ANALYST CA LIC LOCAL MARKET ADVISOR ARVIN VANDER VEEN, SIOR SENIOR VICE PRESIDENT WA LIC. 265 DEBT & EQUITY FINANCE JEREMY THORNTON EXECUTIVE VICE PRESIDENT CA. LIC