Presented by: Staci L. Walbridge. WASHOUGAL RETAIL/OFFICE CENTER 1436 A St Washougal, WA Market Positioning and Pricing Analysis

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1 Presented by: Staci L. Walbridge 1436 A St Washougal, WA Market Positioning and Pricing Analysis 1

2 P R E S E N T E D B Y Staci L. Walbridge Senior Associate Portland Office Tel: (503) Fax: (503) staci.walbridge@marcusmillichap.com Licenses: OR , WA

3 TABLE OF CONTENTS SECTION INVESTMENT OVERVIEW 01 Property Overview Regional Map Local Map Aerial Photo FINANCIAL ANALYSIS 02 Rent Roll Summary Commercial Operating Statement Notes Current Pricing User Defined Pricing Pricing Detail Proposal Price MARKET COMPARABLES 03 Sales Comparables MARKET OVERVIEW 04 Market Analysis Demographic Analysis 3

4 INVESTMENT OVERVIEW 4

5 PROPERTY OVERVIEW PROPERTY OVERVIEW Washougal Retail and Offices is located in the Heart of Washougal, Washington. This fabulous investment opportunity is 100% occupied and valued at $165/square ft, that's almost 7.5% CAP, you don't want to miss this opportunity! Washougal Retail and Offices was built in 1999 with a brand new 50 year warranty roof that transfers to the new owner and new hardy plank siding. There is a lot of new development for shops, restaurants and great places to live and play in this newer area. Located on the Columbia River this building is on the busy corner of First Street and Washougal River Road, heavy traffic area. Washougal is a fast growing community as Vancouver is rapidly growing with new developments there is a lot of new residential and growth. The Vancouver metro encompasses all of Clark County, Washington, and is part of the Portland-Vancouver metro. The city itself is 14 miles from downtown Portland. The local economy is characterized by the tax environment as the state of Oregon has no sales tax and the state of Washington levies no individual or corporate income taxes. This diminishes Vancouver's retail sector, though development of other types of real estate thrives as Oregon has more rigid development laws. PROPERTY OVERVIEW New 50 Year Roofs with Warranty New Hardy Plank Siding 100% Occupied Almost 7.5% CAP Fabulous Corner Lot! Room for Expansion Value under $1m at $165/square ft Heavy Traffic Area, Great Curb Appeal Built in

6 REGIONAL MAP 6

7 LOCAL MAP 7

8 AERIAL PHOTO 8

9 FINANCIAL ANALYSIS 9

10 RENT ROLL SUMMARY FINANCIAL ANALYSIS 10

11 OPERATING STATEMENT FINANCIAL ANALYSIS 11

12 CURRENT PRICING FINANCIAL ANALYSIS 12

13 PRICING DETAIL FINANCIAL ANALYSIS 13

14 MARKET COMPARABLES 14

15 PROPERTY WASHOUGAL NAME RETAIL/OFFICE CENTER SALES MARKETING COMPARABLES TEAM SALES COMPARABLES 1436 A St, Washougal, WA, VITA PLAZA 605 SE 164th Ave, Vancouver, WA, NE 15TH ST NE 15th St, Vancouver, WA, rentpropertyname1 rentpropertyname1 rentpropertyname1 Tenants Type Offering Price $990, Bdr 0Bath CAP Rate 7.35% 8 1 Bdr 0Bath Year Built Bdr 0Bath Total Commercial Suites 9 5 Retail 4 Office Close Of Escrow: Days On Market: Tenants Lease Type 7/29/2016 Gentech Dentist Modified Gross 129 Sales Price: $2,001,000 Price/SF: $ CAP Rate: 7.60% Close Of Escrow: Days On Market: 4/12/ Sales Price: $650,000 Price/SF: $ Year Built: 2002 Tenants Lease Type Year Built: 2007 rentpropertyaddress1 Annual rentpropertyaddress1 Per SF Expenses $16,188 $1.80 Occupancy 62% NOTES rentpropertyaddress1 The building contains three drive through bays. NOTES This property sold to a software company who will occupy a small space of this property. The property was about 62% occupied at the time of sale. 15

16 PROPERTY WASHOUGAL NAME RETAIL/OFFICE CENTER SALES MARKETING COMPARABLES TEAM SALES COMPARABLES BILLYGAN'S ROADHOUSE SE Mill Plain Blvd, Vancouver, WA, CRACIUN PLAZA - BUILDING A SE 1st St, Vancouver, WA, NE FOURTH PLAIN BLVD NE Fourth Plain Blvd, Vancouver, WA, rentpropertyname1 rentpropertyname1 rentpropertyname1 Close Of Escrow: 10/4/2017 Sales Price: $1,588,000 Price/SF: $ Year Built: 1999 Tenants Lease Type Close Of Escrow: Days On Market: 4/28/ Sales Price: $1,850,000 Price/SF: $ CAP Rate: 7.40% Tenants Lease Type Close Of Escrow 7/26/2017 Sales Price $1,967,000 Price/SF $ CAP Rate 7.00% Year Built 1987 Year Built: 2007 rentpropertyaddress1 Annual Per SF Expenses $16,686 $2.38 NOTES The subject property is a single-story, wood frame with stucco exterior building. The site has frontage on SE Mill Plain Blvd., one of Vancouver's hottest retail areas. NOTES rentpropertyaddress1 The property was purchased as an investment with the cap rate reported at 7.40% at the time of sale. This was a 1031 exchange for the buyer. Key Tenants Pied Piper Pizza rentpropertyaddress1 NOTES The property was purchased as an investment with a cap rate reported at 7.00% at the time of sale. This was a 1031 exchange for the buyer. 16

17 PROPERTY WASHOUGAL NAME RETAIL/OFFICE CENTER SALES MARKETING COMPARABLES TEAM SALES COMPARABLES 2300 E FOURTH PLAIN BLVD 2300 E Fourth Plain Blvd, Vancouver, WA, rentpropertyname1 rentpropertyname1 rentpropertyname1 Close Of Escrow: Days On Market: 1/31/ Sales Price: $575,000 Price/SF: $ Year Built: 1985 Tenants Lease Type rentpropertyaddress1 Annual Per SF Expenses $4,125 $1.43 rentpropertyaddress1 rentpropertyaddress1 17

18 MARKET OVERVIEW 18

19 VANCOUVER, WA OVERVIEW The Vancouver metro encompasses all of Clark County, Washington, and is part of the Portland-Vancouver metro. The city itself is 9 miles from downtown Portland. The local economy is characterized by the tax environment as the state of Oregon has no sales tax and the state of Washington levies no individual or corporate income taxes. This diminishes Vancouver's retail sector, though development of other types of real estate thrives as Oregon has more rigid development laws. METRO HIGHLIGHTS PEACEHEALTH The largest employer in the metro is PeaceHealth Southwest Washington Medical Center, which employs more than 4,400 individuals. FRED MEYER Superstore chain Fred Meyer is a large source of employment in the region, providing 1,700 jobs. MARKET OVERVIEW PUBLIC SCHOOLS Evergreen Public Schools and Vancouver Public Schools employ roughly 5,000 staff and faculty across Clark County ECONOMY The local economy is largely driven by nearby Portland as many Vancouver residents choose to commute into Portland for employment opportunities. A median household income above the U.S. median has not translated into a homeownership rate greater than the national level. In Clark County, 64 percent of housing units are owner occupied, on par with the rest of the nation. Enrollment at Washington State University Vancouver tops 3,400, providing the metro with a steady supply of renters and a college-educated workforce. DEMOGRAPHICS 2017 POPULATION: 473K Growth *: 6.7% 2017 HOUSEHOLDS: 175K Growth *: 9% 2017 MEDIAN AGE: 37.9 U.S. Median: MEDIAN HOUSEHOLD INCOME: $63,500 U.S. Median: $56,300 * Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody s Analytics; U.S. Census Bureau 1

20 PROPERTY WASHOUGAL NAME RETAIL/OFFICE CENTER Created on October 2018 POPULATION 1 Miles 3 Miles 5 Miles 2022 Projection Total Population 6,345 25,645 81, Estimate Total Population 6,126 23,156 74, Census Total Population 5,628 20,914 67, Census Total Population 5,003 14,981 51,223 Daytime Population 2017 Estimate 4,095 20,584 66,345 HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2022 Projection Total Households 2,533 9,763 29, Estimate Total Households 2,395 8,712 26,684 Average (Mean) Household Size Census Total Households 2,202 7,875 24, Census Total Households 1,970 5,768 18,481 MARKETING DEMOGRAPHICS TEAM HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2017 Estimate $250,000 or More 1.22% 2.38% 2.58% $200,000 - $249, % 2.08% 2.09% $150,000 - $199, % 5.96% 6.23% $100,000 - $149, % 15.61% 18.14% $75,000 - $99, % 14.57% 15.60% $50,000 - $74, % 21.00% 20.37% $35,000 - $49, % 13.52% 12.86% $25,000 - $34, % 10.50% 8.94% $15,000 - $24, % 6.79% 6.98% Under $15, % 7.57% 6.20% Average Household Income $67,846 $83,803 $87,805 Median Household Income $51,277 $63,401 $67,912 Per Capita Income $26,531 $31,595 $31,501 Source: 2017 Experian 20

21 PROPERTY WASHOUGAL NAME RETAIL/OFFICE CENTER MARKETING DEMOGRAPHICS TEAM Population In 2017, the population in your selected geography is 6,126. The population has changed by 22.45% since It is estimated that the population in your area will be 6, five years from now, which represents a change of 3.57% from the current year. The current population is 51.03% male and 48.97% female. The median age of the population in your area is 37.49, compare this to the US average which is The population density in your area is 1, people per square mile. Race and Ethnicity The current year racial makeup of your selected area is as follows: 89.57% White, 0.57% Black, 0.12% Native American and 1.05% Asian/Pacific Islander. Compare these to US averages which are: 70.42% White, 12.85% Black, 0.19% Native American and 5.53% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 6.84% of the current year population in your selected area. Compare this to the US average of 17.88%. Households There are currently 2,395 households in your selected geography. The number of households has changed by 21.57% since It is estimated that the number of households in your area will be 2,533 five years from now, which represents a change of 5.76% from the current year. The average household size in your area is 2.55 persons. Housing The median housing value in your area was $232,419 in 2017, compare this to the US average of $193,953. In 2000, there were 1,221 owner occupied housing units in your area and there were 750 renter occupied housing units in your area. The median rent at the time was $545. Income In 2017, the median household income for your selected geography is $51,277, compare this to the US average which is currently $56,286. The median household income for your area has changed by 41.13% since It is estimated that the median household income in your area will be $58,832 five years from now, which represents a change of 14.73% from the current year. Employment In 2017, there are 1,403 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 50.04% of employees are employed in white-collar occupations in this geography, and 48.43% are employed in blue-collar occupations. In 2017, unemployment in this area is 7.96%. In 2000, the average time traveled to work was minutes. The current year per capita income in your area is $26,531, compare this to the US average, which is $30,982. The current year average household income in your area is $67,846, compare this to the US average which is $81,217. Source: 2017 Experian 21

22 8 DEMOGRAPHICS 22

23 P R E S E N T E D B Y Staci L. Walbridge Senior Associate Portland Office Tel: (503) Fax: (503) staci.walbridge@marcusmillichap.com Licenses: OR , WA