17332 SE Powell. YEAR BUILT Last remodel new from shell medical clinic build out

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1 LOCATION SE POWELL BLVD, PORTLAND, OR OFFERING PRICE $1,600,000 AVAILABLE LAND AREA 30,056 +/- SF (.69 AC) BUILDING AREA /- SF 1- STORY CURRENTLY BUILT OUT AS MEDICAL CLINIC (DIVISIBLE) TENANCIES 5881 SF LEASED TO LEGACY THROUGH TENANT RECEPTIVE TO EARLY TERMINATION / PROPERTY IS UNOCCUPIED RENT: TO $ /MO. - NNN TO $ /MO. - NNN TO $ /MO. - NNN PARKING 24,000 +/- SURFACE PARKING LOT APPROXIMATELY 42 SPACES (7:1000) YEAR BUILT Last remodel new from shell medical clinic build out CONSTRUCTION TYPE Concrete block / store front windows / built up roof CG - CITY OF PORTLAND CURRENT w/ bonus 3.5:1 Subject to CC&Rs HEIGHT LIMIT 65 USES Retail Sale & Services / Office / Residential LOCATION The property is at the corner of SE Powell Blvd and SE 174th on an out parcel of Meadowland Shopping Center in the City of Portland. Other Tenant s include Bi-Mart, La Cosita, Burger King, Chu s Restaurant, Powell Kinder Care. Nearby are numerous apartment complexes. It is short distance to Powell Butte Nature Park, Centennial High School, Lynch Wood Elementary and City of Gresham. The Site is served by Tri Met Transit. EAST PORTLAND ENTERPRISE ZONE

2 SUBMARKET OVERVIEW COMPETITIVE INVENTORY, ABSORPTION The Eastside/Gresham/East Multnomah submarket, one of five distinct geographic concentrations within Portland, contains 4.8 million square feet, or 19.6% of the metro s total inventory of neighborhood and community shopping center space. In the ten-year period beginning with Q2 2007, new additions to the submarket totaled 8,000 square feet; over the same period, the metro growth rate has been 0.9%. Asking and Effective Rent Asking rents fell by 0.1% during the first quarter of 2017 to an average of $20.92, higher than only the East Clackamas submarket s $ Over the past four quarters, asking rents have climbed a total of 1.2%, up from $ The Eastside / Gresham / East Multnomah submarket s current asking rent levels and growth rates compare unfavorably to the metro s averages of $21.52 and 0.3%. Effective rents, which exclude the value of concessions offered to prospective tenants, also fell by 0.1% during the first quarter. The identical rates of change suggest that, although rents drifted downward, landlords have avoided increasing the relative value of incentives packages used to attract and retain lessees. COMPETITIVE INVENTORY, ABSORPTION Since the beginning of Q2 2007, the metro experienced an average annual absorption rate of 138,900 square feet. During the first quarter 2017, metropolitan absorption totaled 67,000 square feet, of which the Eastside / Gresham / East Multnomah submarket captured 29,000 square feet, the highest level of absorption among Portland s five submarkets. Since the beginning of Q2 2007, the metro experienced an average annual absorption rate of 138,900 square feet. During the first quarter, metropolitan absorption totaled 67,000 square feet, of which the Eastside/Gresham/ East Multnomah submarket captured 29,000 square feet, the highest level of absorption among Portland s five submarkets. Over the last four quarters, submarket absorption totaled 123,000 square feet, sharply higher than the average annual absorption rate of 1,700 square feet recorded since the beginning of Q The submarket s average vacancy rate declined by 60 basis points during the first quarter to 6.2%, which is 2.2 percentage points lower than the long-term average, and 1.0 percentage point lower than the current metro average. OUTLOOK Reis s new construction specialists report that no competitive retail stock will be introduced to the submarket this year, and net total absorption will be positive 16,000 square feet. Thus, the vacancy rate will continue to drift downward to finish the year at 5.9%. During 2018 and 2019, developers are expected to deliver a total of 35,000 square feet of neighborhood and community shopping center space to the submarket amounting to 22.3% of the new construction introduced to Portland. Total employment growth during 2018 and 2019 is projected to average 1.8% annually, while household formations are anticipated to average an increase of 1.8% per year. Over the same period the metro absorption rate is expected to average 4,000 square feet per year. The Eastside/Gresham/East Multnomah submarket is expected to post absorption averaging 22,000 square feet per year. The submarket vacancy rate will finish 2018 at 6.1% and will fall 0.4 percentage points to 5.7% by year end Between now and year-end 2017 asking rents are expected to rise 1.1% to a level of $21.15, while effective rents will advance by 1.2% to $ On an annualized basis through 2018 and 2019, asking and effective rents are projected to increase by 1.7% and 2.0%, respectively, to finish 2019 at $21.88 and $ Source: REIS, Inc 2017 Over the last four quarters, submarket absorption totaled 123,000 square feet, sharply higher than the average annual absorption rate of 1,700 square feet recorded since the beginning of Q The submarket s average vacancy rate declined by 60 basis points during the first quarter to 6.2%, which is 2.2 percentage points lower than the long-term average, and 1.0 percentage point lower than the current metro average.

3 LOCATION SE POWELL The property is at the corner of SE Powell Blvd and SE 174th on an out parcel of Meadowland Shopping Center in the City of Portland. Other Tenant s include Bi-Mart, La Cosita, Burger King, Chu s Restaurant, Powell Kinder Care. Nearby are numerous apartment complexes. It is short distance to Powell Butte Nature Park, Centennial High School, Lynch Wood Elementary and City of Gresham. The Site is served by Tri Met Transit. Collection Street Cross Street Traffic Vol. Year Distance SE Powell Bvd. SE 17th Ave. E 22, SE Powell Bvd. SE 17th Ave. W 18, th Ave. SE Francis St. N 9, th Ave. SE Jenne Rd. S 13, th Ave. SE Powell Blvd. S Made with TrafficMetrix Products AVG. RETAIL LAND VALUES PORTLAND SOURCE: COSTAR 1 Mi 3 Mi POPULATION 17, ,743 HOUSEHOLDS 6,302 51,761 AVG. AGE MEDIAN HOUSEHOLD INCOME $47,023 $50,044 DAYTIME EMPLOYEES 2,593 26,772 POP. GROWTH % +6.1% HOUSEHOLD GROWTH % +6.1%

4 AVG. RETAIL PER SQ.FT. VALUES PORTLAND: AVG. RETAIL RENTS PER SQ.FT. PORTLAND METRO:

5 17332 SE POWELL SE POWELL SE POWELL

6 COMPARABLE RETAIL/OFFICE SALES NE Halsey NE Submarket NE Halsey NE Submarket 2520 SE 145th SE Submarket SE Stark SE Submarket NW Burnside Gresham, OR. Gresham Submarket NW 12th Gresham, OR. Gresham Submarket SE Division Portland, OR E. Portland Submarket Blvd. E. Portland Submarket Brooklyn 46th LLC $319 CSd Purchased by Owner User Cannacea Inc $278 CSd Purchased by Owner User JNS Properties $274 CG Purchase as 1031 Investment Happy Mart LLC $252 NC Purchased as Investment Gresham Medical Prop Owner LLC AC Part of Multi-Bldg Sale 9873 $265 TD N/A Purchased for Medical Use DDR Gresham Station LLC AC Part of Multi-Bldg Sale 5590 $253 TD N/A Purchased as Investment ROIC Oregon LLC AC Part of Multi-Bldg Sale 4240 $271 CG Purchased as Investment TBD TBD TBD CG Can be Used for Medical Retail Service - Office Residential Redevelopment

7 AS BUILT FLOOR PLAN SITE PLAN (SE POWELL & SE 174TH FRONTAGE)