CENTRE 205 FOR SALE - $6,136, SE 98TH AVE. PORTLAND, OR THOMAS MCDOWELL

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1 CENTRE SE 98TH AVE. PORTLAND, OR INVESTMENT REAL ESTATE SERVICES RAYMOND DUCHEK THOMAS MCDOWELL Information contained herein has been obtained from others and considered to be reliable; however, a prospective purchaser or lessee is expected to verify all information to his/her own satisfaction. FOR SALE - $6,136,000

2 THE OFFERING Norris & Stevens, Inc. is pleased to offer for sale Centre 205 located in SE Portland at the Freeway interchange of I-205 and SE Division Street. Centre 205 has been home to the United States Fish and Wildlife since the building was built in 1990, and Warner Pacific College Adult Degree Program since Offer Price $6,136,000 Cap Rate 7% Address Building Land Area Year Built Construction 2600 SE 98th Avenue Portland, OR Gross Building Square Feet ±29,856* Rentable Square Feet ±29,312 Number of Stories 2 *Per County Records ± 1.93 Acres / 84,279 SF Substantial lobby renovation in 2012 Wood Frame Occupancy 100% Parking Spaces ± 158 Spaces (5.4/1,000 ratio per rentable SF) Zoning CO2 - Office Commercial 2

3 INVESTMENT HIGHLIGHTS Long Term Stable Tenancy: The U.S. Fish & Wildlife has been in the property since it was built in 1990, utilizing the abundant, secured parking for its fleet vehicles. The U.S. Fish & Wildlife recently excercised their first renewal option, extending the lease until January Warner Pacific College has been in the property since 2004, located a short distance from their main campus. Location: The property is located at the heart of East County off I-205 and SE Division Street. This central location provides immediate access to a multitude of residential neighborhoods, in addition to many major amenities such as Mall 205, Portland Adventist Medical Center and Mt. Tabor City Park, as well as Portland International Airport. Parking: The property has a tremendous amount of parking on site. The current ratio is 5.4/1000 SF. There is also street parking available close by. Functional Office: The building has great glass lines with windows on all four sides of the building. The property is elevator served and could be modified to accommodate multiple tenants on each floor. Transportation Access: The property is literally just seconds from access to Interstate 205, which connects to all the major freeways in the Portland Metro Area. Additionally, SE Division Street is a major east/west arterial that runs from close in Eastside Portland to Gresham. The property is located on the number 4 bus line, and within 3 blocks of the MAX Green Line. Limited Competition: There are very few quality Class B office buildings in the competitive trade area. Most of the office space along I-205 is Class A, either at Clackamas Town Center area or Airport Way. Average asking rental rates for class A & B buildings in the competing area range from $20-$26 PSF Full Service. Favorable Financing Market: Stabilized properties are achieving great financing packages including terms and rate. Banks, Life Companies, and CMBS would all be viable options for the Buyer of Centre 205. Committed Ownership: The ownership has invested aproximately $900,000 in building upgrades and improvements to maintain its competitiveness in the marketplace which has resulted in 100% occupancy during their ownership tenure.

4 PROPERTY SUMMARY Property Summary Constructed in 1990 and designed for multiple tenants, the property features a two-story glass atrium lobby entrance. The 1.9 acre site provides an above market parking ratio of 5.4 per 1,000 square feet with very convenient access to I-205. The lobby and all restrooms have been recently updated. APN R Area ±1.935 Acres Ingress/Egress Ingress and egress are provided through two curb cuts off SE 98th Avenue and one access point via easement through the adjoining mini-storage warehouse property. The mini-storage property has street access to SE Division Street. Parking Centre 205 provides surface parking for 158 cars, a ratio of 5.4 per 1,000 square feet, well above the market average. Sixteen of the 158 parking spaces are secured by a fence for exclusive use by the US Fish & Wildlife Service. Eight of the spaces are covered. There are additional street parking spaces available, enhancing Centre 205 s parking competitive advantage. Construction Year built: 1990 Exterior walls: Wood frame with painted stucco dryvit exterior Interior walls: Metal frame with painted sheetrock Floor: Concrete foundation and footing with 4-inch slab on crushed rock Ceiling: 2 2 and 2 4 T-bar grid with acoustical tile Roof: Built-up 3-ply system with mineral cap sheet Elevators One, 1,500-pound Dover hydraulic elevator Improvements Apprx. Cost 2006 Removal of EIFS skin, replaced with stucco $ 500, HVAC Energy upgrade $ 60, GSA TI $ 155, Lobby/RR Remodel $ 160, Lighting Energy retrofit $ 63, Parking Lot improvement (HC, slurry, landscape) $ 40,000 (est.) 2016 Utility Energy evaluation (efficiency measurement) $ pending HVAC Roof-mounted gas pack HVAC units with centralized supply and return system consisting of variable air volume terminal units located within tenant spaces, the enitre building is regulated by an Alerton remote computer access system. Utility services Water/sewer: Electricity: Gas: Telephone: City of Portland Electricity Portland General Electric Northwest Natural Gas Verizon Property Taxes 2015/2016: $39, Warner Pacific College is a nonprofit, tax-exempt corporation under Article 501(c)3 of the Internal Revenue Code. The current property taxes reflect this exemption. ENTRANCE LOBBY

5 GREAT LOCATION VANCOUVER 17M (15 Miles) SUBJECT PROPERTY DOWNTOWN 14M (9 Miles) CENTRE M (6 Miles) GRESHAM TIGARD 22M (17 Miles) 12M (6 Miles) CLACKAMAS

6 AERIAL OVERVIEW SE DIVISION ST. JUST OFF I-205 & SE DIVISION Featuring a large parking lot, Centre 205 is located directly off SE Division St. less than 1/10 of a mile from I-205. YELLOW - Outline of Centre 205 and parking facilities SE 98TH AVE. N

7 Large conference room Warner Pacific Lobby Secured Parking Looking SW

8 Warner Pacific Conference Room US Fish & Wildlife Lobby Example Office Street facing

9 TENANTS UNITED STATES FISH & WILDLIFE The US Fish & Wildlife Service has been a tenant in Centre 205 since it was developed in The building s features and location give it a unique ability to meet the US Fish & Wildlife Service needs, undoubtedly contributing to the long, successful relationship between tenant and building. The above-market parking ratio at Centre 205 has allowed the US Fish & Wildlife Service to secure a portion of the parking lot with a fence and razor wire for private and secure parking for US Fish & Wildlife Service vehicles. The adjacent photo illustrates the secure parking area In addition to the physical amenities provided by Centre 205, the US Fish & Wildlife Service has invested more than $400,000 in tenant improvements, including a custom filing system, the fence for the parking lot, and recently, a new telephone system. WARNER PACIFIC COLLEGE Established in 1937, Warner Pacific College (WPC) ranks in the top 10 of the U.S. News & World Report and has been recognized as the most likely place to encounter undergraduates from different ethnic groups. Ranked 5th for Oregon as the Best Bang for the Buck, WPC has an enrollment of 1,400 students across six campuses; an average class size is 14 students, allowing for small groups that move through courses together. With their main campus only 27 blocks down Division, this location is the main campus for WPC s Adult Degree Program. With the knowledge that many students continue to work full-time in addition to their studies, the Adult Program offered at this campus features many benefits including monthly start-dates that allow you to start when you are able, onenight a week classes, and courses that progress at an accelerated rate to ensure a speedy graduation. 1.4 Miles

10 MARKET STATISTICS: I-205 CORRIDOR Gross Asking Rent Per SF Vacancy Rate Net Absorption Availability Survey 5-Year Avg Gross Rent Per SF $20.66 $20.33 Vacancy Rate 5.6% 8.0% Vacant SF 259, ,516 Availability Rate 9.1% 9.8% Available SF 435, ,523 Sublet SF 8,733 7,401 Months on Market Inventory Survey 5-Year Avg Existing Buildings Existing SF 4,657,829 4,594, Mo. Const. Starts 134,220 36,054 Under Construction 117,500 57, Mo. Deliveries 29,651 44,726

11 RENT ROLL (AS OF JUNE 2016) Tenant Name Lease Dates SqFt Bldg Share Rate per Year Shell Rent per SF Next Rent Increase Increase Amount Rate per SF Rate per Year Expense Reimbursment GSA $ st Option Period Feb 2017 $19.54 $265,802 Operating Expense: $74,350 base adjusts annually by cost of living index. Office 13,603 $224,988 Feb-1990 to Jan % GSA rent has four components: Shell rent, Operating Expense Base, Operating Expense Base ajdustment, and Porperty Tax Reimbursement 2nd Option Period Feb rd Option Period Feb 2027 $24.04 $327,016 $29.04 $395,031 Property Tax: Base year Tax Reimbursed amount: $4, Warner Pacific College $21.50 Office 15,509 $333,445 Jun-2004 to Mar % Annual CPI increase not less than 2% or not more than 4% Full Service Gross 2016 Base year. Warner Pacific qualifies for non-profit tax exempt status Vacant First Floor Conference Room 200 Total SqFt 29,312 Information contained herein has been obtained from others and considered to be reliable; however, a prospective purchaser or lessee is expected to verify all information to his/her own satisfaction.

12 CASH FLOW Price $6,136,000 Cap Rate 7% Cash on Cash Return 7.9%* *New Loan Quote Lender Term Amoritized LTV 65% Life Company 10 Years 25 Years Rate 4.25% Existing Loan Aproximate Balance $2,900,000 Expiration May 31, 2025 Asumable financing in place Call Agent for details Year Ending For the Years Ending Dec-2017 Potential Gross Revenue Base Rental Revenue $600,845 Scheduled Base Rental Revenue 600,845 Expense Reimbursement Revenue 83,126 Total Potential Gross Revenue 683,971 General Vacancy (3%) (20,519) Effective Gross Revenue 663,452 Operating Expenses Repair & Maint - Equip 12,300 Janitorial 26,650 Janitorial Supplies 5,904 Pest Control 1,131 HVAC 11,771 Elevator Inspection/Repair 3,797 Landscape 7,556 Window Cleaning 1,214 Security Service 2,732 Insurance 9,279 Property Tax 39,157 Electricity/Gas 49,200 Water/Sewer 12,600 Trash 5,223 Telephone 1,163 Property Management 19,904 Reserves for Cap X 5,968 Warner Property Tax Rebate 18,360 Total Operating Expenses 233,909 Net Operating Income 429,543 Debt Service* Interest Payments 163,770 Principal Payments 95,510 Total Debt Service 259,280 Cash Flow After Debt Service $170,263 But Before Taxes =========== Information contained herein has been obtained from others and considered to be reliable; however, a prospective purchaser or lessee is expected to verify all information to his/her own satisfaction.