Stark Street Crossings SE Stark Street Gresham, OR 97030

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1 6105 SW Macadam Avenue, OR Stark Street Crossings SE Stark Street, OR 7030 Price: 14,500,000 Units: 130 Built: 2004 Stark Street Crossings Grayson Pounder, Broker / grayson@pounderrealty.com

2 PROPERTY OVERVIEW Stark Street Crossings STARK STREET CROSSINGS PRICE 14,500,000 PRICE/UNIT 111,538 UNITS 130 YEAR BUILT 2004 SQUARE FEET 117,837 SF Mix of spacious One, Two, and Three Bed Units from 72 to 1,165 Square Feet Near Interstate 84, on Bus Line and 0.4 mile walk to Max Blue Line Convenient Shopping and Dining at Station and Troutdale Minutes from Mt. Hood Community College Washers and Dryers, with Fireplaces in Select Units Seasonal Pool, Fitness Facility, & Extra Storage Mountain Views from Private Patios or Balconies. Stark Street Crossings 2

3 LOCATION GRESHAM The City of is Oregon s fourth largest city at nearly Columbia River Gorge 110,000 residents, just 13 miles from downtown and an integral part of the Metropolitan area. Easily accessed by light rail or the Springwater Trail, downtown boasts 150 shops, services and restaurants. is situated between two of Oregon's premiere recreation areas, Mt. Hood and the Columbia River Gorge. These areas offer a variety of activities from hiking, biking and fishing to skiing winter snow is less than 45 minutes away. Just north of is the Columbia River Gorge, a national scenic area with incredible views of the river, access to the Pacific Crest Trail and a variety of campgrounds, windsurfing, and easy access to hundreds of waterfalls. The Rockwood-West Renewal Plan is a 20-year plan to invest in the revitalization of the Rockwood-West area. The plan provides funding for a variety of public improvements and programs to stimulate private investment and improve community conditions. Goals in the Urban Renewal Plan Develop Public Safety & Community Service Facilities Help Create and Retain Family Wage Jobs by Improving Industrial and Commercial Areas Improve Rockwood Town Center Improve Transportation Increase Availability of Quality Housing Parks and Recreation Facilities Urban Renewal grants to businesses and property owners, leveraging more than 81 million in private investment and helping create more than 400 jobs. New Industries: 14 grants totaling 1 million; leveraged over 65 million in private investment and nearly 400 jobs Predevelopment Services: 6 grants totaling 138,615; potential private investment of over 12 million Storefront Improvement: 14 grants totaling 264,000; leveraged nearly 00,000 in private investment Apartment Rehabilitation: 38 grants totaling 804,651; leveraged 2.5 million in private investment Transportation improvements throughout the neighborhood Source and more information: Oregon.gov/UrbanRenewal Stark Street Crossings 3

4 PORTLAND METROPOLITAN AREA The Metro Area has been the fastest growing West Coast economy over the past decade. Expanding investment, increased economic vitality, and renewed job growth across nearly all employment sectors point to the region s strong future. Over the past three decades, s workforce has grown by 110%. Job growth is currently 1.5%, and with 15,700 jobs added in the last year, unemployment has dropped from 7.7% to 6.6%. More than twenty colleges and universities in the metro area enroll 60,000+ students. / s Gross Regional Product now tops 150 billion, and IHS Global Insight projects a 22% 5-Year GRP Growth Projection from 2013 to Moreover, there is no general sales-and-use, revenue or inventory tax in Oregon. In 2013, Apartment values were up an average of 2%, apartment income was up an average of 3-5%, and vacancies remain near historic lows at 3.1%. Average rent per square foot is now 1.10, a 6.8% year over year increase. PORTLAND METROPOLITAN APARTMENT MARKET The / vacancy factor continues to decline, and currently stands at 3.11%, down from the 3.55% in the Spring. Average rents have once again accelerated to 1.10/SF currently, a 5.8% increase in just six months. All unit types are less than 4% vacant and studios are very tight, with a vacancy factor under 2%. Barry & Associates Spring 2014 report for the metro area noted that 2013 proved to be another banner year for apartments (in the Metro area). The apartment market had everything going for it, with vacancies near all time lows, increasing rents, increasing income and readily available financing. The market remained strong, even as thousands of new units were completed. The report continued with the following forecast for 2014: As the economy continues to make steady gains, 2014 should be another strong year for apartments. Apartments remain in the sweet spot of the current real estate cycle. *Sources: Multi-Family NW Apartment Report Fall 2013), Barry & Associates Spring 2014 Report Stark Street Crossings 4 Current Metro Trends Unemployment Job Growth Population Growth Apartment Sales Apartment Values Apartment Income Apartment Vacancies Down to 6.6% 1.5% 1.1% ~200 transactions (14 in 2012) Up +2% on avearage for 2013 Up +3-5% in %

5 PRO FORMA INCOME & EXPENSES SE Stark Street,, OR 7030 Units Type Bed / 2 Bed / 2 Bed / 3 Bed / Unit SF Total SF Market Rent , ,767 27,872 61,08 10, , , Monthly Mkt. Rent 17,250 27,200 61,050, ,175 Pro Forma Trailing 12 1,382,100 (48,374) 0 1,333,727 1,223,418 (66,371) (6,600) 1,150,447 12,53 62,400 14,400 1,423,066 12,53 50,156 8,713 1,221,855 6,500 4,500 1,500 80,000 78,000 42,62 3,000 12, ,664 15,600 32,500 47,083 3,027 4,84 7,080 56,065 87,646 14,400 2,00 12, ,664 12,875 26,456 42,324 1 Bath 1 Bath 2 Bath 2 Bath Income Scheduled Market Rent Less: Vacancy Less: Concessions Net Rental Income 3.50% 0.00% Plus: Fee Income Plus: RUBS Income Plus: Garages Income Total Operating Income (EGI) Expenses Administrative Advertising & Promotion Turnover Payroll Repairs & Maintenance Management Fee Utilities Contracted Services Real Estate Taxes Insurance Replacement Reserve Total Expenses 3.00% Per Unit Per Unit: Per SF: Net Operating Income Less: Debt Service Projected Net Cash Flow Total Economic Loss Cash-on-Cash Return (Based on Ask Price) Debt Service Coverage Cap Rate Analysis Listing Price Price 14,500,000 All Financing 3, Annual Rent / SF Mkt. Rent 207, , , , ,382, , ,83 72,531 (611,75) 314, % (611,75) 180, % 8.67% % /Unit 111,538 /Foot Cap Rate 6.3% Cap Rate 5.47% Total Loan Amount 10,875,000 Down Payment 3,625,000 LTV 75% Mo. Payment (50,83) Debt Constant 5.6% New First Mortgage (to be originated at purchase) LTV for this loan Amount Interest Rate Amortization Payment Fees I/O Term (yrs) 75% 10,875, % 30 (50,83) 0.00% 0 The information contained herein is based on information and sources deemed to be reliable, but no representation or warranty is being made as to the accuracy or completeness of such information. Any pro forma projections and estimates are used for example only and do not represent the current or future performance of the Property. Prospective Buyers are expected to verify any and all information pertaining to the Property, and should make their own investigations, projections, and conclusions to inform financial, legal, and tax decisions. Prospective Buyers shall remove Broker and Seller from any liability regarding the accuracy or completeness of this information, as well as any written or oral communications regarding the Property. Stark Street Crossings 5

6 COMPARABLE SALES Name/Address Highland Hills 2406 NE 13th Street Reflections at Happy Valley 8800 SE Causey Loop Camden Place 4701 NE 72nd Ave Village at Van Mall 5000 NE 72nd Ave Carriage House 4714 NE 72nd Ave Westbury Apartments 400 SW Greensboro Way Avalon Park SW Pacific Hwy Wyndham Park 1470 SW Scholls Ferry Rd Center Pointe Apartments 1520 SW Millikan Way Stark Street Crossings SE Stark Street City Built 2002 Units 400 Price Price / Unit 4,325, ,313 Price / SF Ave SF Happy Valley Dec-13 35,500,000 5, Sep-13 31,855, , Sep-13 14,475, , Sep-13 18,187, , Jan-13 28,500,000 10, Tigard Dec-12 1,650, , Dec-12 28,737, , Mar-12 34,325, , Averages 113, Sale Date Dec-13 14,500, ,538 The information contained herein is based on information and sources deemed to be reliable, but no representation or warranty is being made as to the accuracy or completeness of such information. Any pro forma projections and estimates are used for example only and do not represent the current or future performance of the Property. Prospective Buyers are expected to verify any and all information pertaining to the Property, and should make their own investigations, projections, and conclusions to inform financial, legal, and tax decisions. Prospective Buyers shall remove Broker and Seller from any liability regarding the accuracy or completeness of this information, as well as any written or oral communications regarding the Property. Stark Street Crossings 6

7 RENT COMPARISON Comparable Rents Name/Address Park 805 NE Kane Drive Hogan Woods 1645 NE 20th Street Heatherwood Apartments 765 SE Mt Hood Hwy Sunpointe Apartments 2300 SE Stark Street Waverly Gardens SE Stark Street Vista at 23rd 3181 NE 23rd Road Springwater Crossing 1132 NW Birdsdale Ave Royal Greens 2000 NE 1th Avenue Holly Ridge 2700 W Powell Blvd City Year Built & Total Units Comparable Averages Stark Street Crossings SE Stark Street 2004 One Bedroom/One Bath SqFt Rent Rent/SF Two Bedroom/One Bath SqFt Rent Rent/SF Two Bedroom/Two Bath SqFt Rent Rent/SF Three Bedroom SqFt Rent Rent/SF , , ,030 1, , , , , , , , *Subject property based on scheduled market rents The information contained herein is based on information and sources deemed to be reliable, but no representation or warranty is being made as to the accuracy or completeness of such information. Any pro forma projections and estimates are used for example only and do not represent the current or future performance of the Property. Prospective Buyers are expected to verify any and all information pertaining to the Property, and should make their own investigations, projections, and conclusions to inform financial, legal, and tax decisions. Prospective Buyers shall remove Broker and Seller from any liability regarding the accuracy or completeness of this information, as well as any written or oral communications regarding the Property. Stark Street Crossings 7

8 FLOOR PLANS & UNIT MIX Bed/1 Bath - 72 SF 2 Bed/1 Bath SF 2 Bed/2 Bath - 38 SF 3 Bed/2 Bath - 1,165 SF Stark Street Crossings 8

9 ADDITIONAL PHOTOS Stark Street Crossings

10 ADDITIONAL PHOTOS Stark Street Crossings 10

11 6105 SW Macadam Avenue, OR Pounder A Name Deeply Rooted in the Real Estate Market Since the founding of S.J. Pounder Realty in 146, the Pounder family has been a trusted resource for real estate brokerage in Oregon and Southwest Washington. The Pounder name has been synonymous with trust, service, and comprehensive market knowledge. Pounder Realty was founded in 2013 to continue this tradition with a keen focus on our clients' needs, and specializes in mid-sized multi-family units in Oregon and Southwest Washington. Grayson Pounder grayson@pounderrealty.com President / Broker Born and raised in, Grayson Pounder made his first investment property purchase with a duplex in John s Landing and has grown his multi-family investment portfolio to nearly 200 units. This extensive first hand knowledge is used to advise clients in all aspects of apartment ownership, marketing, 1031 exchange and strategic planning. From 2003 to 2013, Grayson was the top producing multi-family Broker at two national firms in the area, representing buyers and sellers in over 100 apartment transactions in excess of 500,000,000. Grayson graduated from Lewis & Clark College in 17 with a Bachelor of Science (BS) degree. Tyler Gerding tyler@pounderrealty.com Vice President / Broker Tyler Gerding is a native who grew up in a family that owns and manages multi-family properties. He joined Pounder Realty at its inception in 2013, having previously worked as a Broker with Grayson at a national brokerage firm in from 2010 until Prior to his brokerage career, Tyler worked for Nike from 2003 to Tyler graduated from Oregon State University in 200 with a Bachelor of Science (BS) in Entrepreneurship and a minor in Communications. Chris Arends Chris Arends chris@pounderrealty.com COO With over 15 years of business experience in, Chris Arends joined Pounder Realty in Most recently, he was a Partner with Common Sense Investment Management, performing hedge fund due diligence, analyst team management, and portfolio/risk management. Chris helped scale the business from 2001 to 2013 as assets grew from 400 million to over 4 billion. From 18 to 2001, Chris was a business development Account Manager for the technology consulting firm Maxim Group (now TEKsystems). His prior commercial real estate experience traces back to 16 as a Broker Assistant with Grubb & Ellis. Chris graduated from Lewis & Clark College in 18 with a Bachelor of Arts (BA) in Business and a minor in Economics.

12 6105 SW Macadam Avenue, OR SERVICES Pounder Realty offers a wide host of services to advise commercial real estate owners and investors. Our reputation is built on hard work, integrity, and fiduciary responsibility to all involved parties. We specialize in mid-sized multi-family properties within Oregon and Washington, and use our knowledge and network to help clients make informed decisions on all aspects of commercial real estate. Our clients and investors are provided with a long-term strategy for successful real estate ownership before, during, and after commercial acquisitions and sales. We believe a patient, value-added approach to real estate investing yields the best return on investment. FOR BUYERS & SELLERS Portfolio Analysis & Strategic Planning Guidance with Purchase and Financing Requirements 1031 Tax-Deferred Exchanges Self-Directed IRA Multi-Family Investing Extensive Property Search Capabilities Property Database with Comprehensive Regional Coverage Property Valuation and Pro-Forma Estimates Financial and Cash Flow Analysis Marketing Strategy to Maximize Exposure and Value o Professional Marketing Packages o Demographic Reports o Rent Surveys & Utility Bill-Backs o Comparable Property Analysis o Direct Owner Contacts, LoopNet, Website, RMLS, , Mail, Brokers, Network Purchase & Sale Representation and Negotiation Step-by-Step Direction through the Escrow Process o Insurance, Inspection, Appraisal, Title, Legal, Engineering, Financing, Contingencies, Closing Advice on Property Management, Leasing & Maintenance Follow up Regarding Current Transactions and New Listings

13 6105 SW Macadam Avenue, OR Historical Transactions Property City McLoughlin Courtyard Fessenden 6-Plex Monroe Manor Apartments Twin Firs Apartments Cedar Terrace Tierra Vista Apartments Bramblewood Apartments Eastwood Village Treehill Commons Loreto Apartments Lombardy Apartments Tillamook Apartments Stark Street Crossing Westview Apartments The Firs Lancaster Condominiums Kings Crossing Wellesley Park Stutz 4-Plex Olympic Park West Main at the Park Courtyard on Stark SE Cesar Chavez Blvd Alder Village Cedarbrook Brockwood Village Milwaukie Oregon City Oregon City Newberg McMinnville Monmouth McMinnville West Linn Salem Hillsboro McMinnville Units * * 17 50* Property City Cowlitz River Duplexes Mt. View Duplex Homes Powell Court Regis Arms Willamette Crest Beverly Court Westbrook Riverside Water's Edge Forest Creek Raleigh Apartments Robert s Landing Charwin Court Centennial West Hampton Heights Cambridge Park Barclay Square Larch Drive Townhomes West Slope Apartments The Premier Erin Court Chelsey Lane Four Plex 1512 SE 2nd Street Franklin Arms Third Avenue Kelso Newberg Hillsboro Oregon City Camas Milwaukie Milwaukie Walla Walla Troutdale Oregon City Albany St. Helens Camas Units 26 16* 72* 20* * 28* 36 36* 17 24* * 24* * * 42 Property City Oak Leaf Manor Lombard Heights Heather Falls Lancaster Mountain View Townhomes Autumn Woods SW Farmington Road Hidden Villa Tall Trees Michael Arms Multnomah Village Townhomes Oak Square Sheridan Plaza Parkwood Capitol Terrace Highland Commons Canterbury Terrace Alpine Village Milbrook Townhomes The Bramblewood Cypress Park Childs Road Ferry Street Wildwood Lamplighter Ellsworth Gardens West Linn Wood Village Hillsboro Albany Tigard McMinnville Monmouth Lake Oswego Albany Units Partial List of Historical Transactions Represented by Grayson Pounder and Tyler Gerding from 2005 to present. *Property has been Represented in Multiple Transactions by Grayson Pounder 52 7* 56* 12* 72* 5* 56* 24* 10 18* * 60*