WHITMAN APARTMENTS 32 UNIT

WHITMAN APARTMENTS 32 UNIT 10540-10544 WHITMAN AVE N, SEATTLE, WA 98133 CONTACT INFORMATION: STEVE FISCHER PRINCIPAL BROKER 206.505.9435 fischer@westlakeassociates.com TYLER SMITH PRINCIPAL BROKER 206.505.9425 tylersmith@westlakeassociates.com JOE KINKOPF BROKER 206.321.8344 joek@westlakeassociates.com

OFFERING SUMMARY WESTLAKE ASSOCIATES IS PROUD TO PRESENT THIS 3 BUILDING PORTFOLIO LOCATED IN THE NORTHGATE NEIGBORHOOD. THIS OFFERING INCLUDES 10 UNITS AT 950 107TH ST, 4 UNITS AT 10704 WHITMAN AVE N, AND 18 UNITS AT 10540-10544 WHITMAN AVE N. Northgate is an up and coming suburb for young professionals in the Seattle area. This suburb in north Seattle is home to the Northgate mall, and the future link light rail station in 2021. Improved transit has made Northgate a desirable area for investors in Seattle who want to escape saturated markets near core Seattle. Lots of desirable retail and access to education has made Northgate a submarket that is poised for growth. ADDRESS 10540-10544 Whitman Ave N, Seattle, WA 98133 PROPERT PROPERTY Y HIGHLIGHTS WELL MAINT MAINTAINED AINED ASSET W WITH ITH ABILIT ABILITY Y TTO O RAISE RENTS Price: $7,300,000 Price Per Unit: $228,125 NEW FL FLOORING OORING AND P PAINT AINT C COULD OULD PRO PROVIDE VIDE EASY RENT PUSH Price Per NRSF: $280.34 ABILIT ABILITY Y TTO O ADD W WASHER ASHER AND DRYER TTO O UNITS Cap Rate: 5.02% Market Cap Rate: 5.81% COPPER PL PLUMBING UMBING AND ELE ELECTRICAL CTRICAL GRM: 12.74 Building Size: 30,167 SF CONVENIENT PRO PROXIMIT XIMITY Y TTO O LLOCAL OCAL RET RETAIL AIL - 79 W WALK ALK SC SCORE ORE Lot Size: 26,040 SF 1 BL BLOCK OCK FROM RAPID TRANSIT NRSF Size: 26,404 SF Year Built: 1989 MARK MARKET ET RENTS ON CURRENT CONDITION COMP OMPARABLE ARABLE AT 10% AND HIGHER L ARGE UNIT MIX PRO PROVIDES VIDES AFFORD AFFORDABLE ABLE HOUSING OPTIONS ABILIT ABILITY Y TTO O RENO RENOV VATE TTO O PUSH RENTS 20%

LOCATION Seattle CBD South Lake Union University District Fremont Ballard Magnolia Green Lake Future Light Rail Station North Seattle College Greenwood Business District North Seattle 32 Northgate Northwest Hospital

PORTFOLIO DETAILS 18-Unit 10-Unit 4-Unit PROPERTY PROPERTY PROPERTY Address 10540-10544 Address 950 Address 10704 Whitman Avenue N N 107th Street Whitman Avenue N Parcel Number 229140-0400 Parcel Number 229140-0170 Parcel Number 229140-0180 Year Built 1989 Year Built 1986 Year Built 1986 Units 18 Units Units 10 Units Units 4 Units 1 BD 1 BA 4 Units 1 BD 1 BA 2 Units 1 BD 1 BA 4 Units 2 BD 1 BA 12 Units 2 BD 1 BA 4 Units 2 BD 2 BA 2 Units 2 BD 1.5 BA 2 Units Land Area 14,880 SF Land Area 7,440 SF Land Area 3,720 SF P Gross Bldg. SF (KCA) 8,878 SF Gross Bldg. SF (KCA) 11,005 SF Gross Bldg. SF (KCA) 2,700 SF Net Rentable Area 7,826SF Net Rentable Area 8,152 SF Net Rentable Area 2,600 SF Zoning LR2 Zoning LR2 Zoning LR2 PARKING PARKING PARKING Parking - Covered 10 Covered Parking - Covered 11 Covered Parking - Covered - Parking - Open 12 Open Parking - Open 10 Open Parking - Open 5 Open Parking - Total 22 Total Parking - Total 21 Total Parking - Total 5 Total AMENITIES AMENITIES AMENITIES W & D On-Site W & D On-Site W & D None

ADDITIONAL PHOTOS

AERIAL PHOTOGRAPHY

10540-10544 WHITMAN AVE N HIGHLIGHTS + 18 units constructed in 1989 + Secured entry building + Covered parking + Potential to add washer and dryer in unit + Upside in rents in current state, or additional upside upon renovation

950 N 107TH ST HIGHLIGHTS + 10 units constructed in 1986 + 2 : 1 parking ratio + 2 BD / 1.5 BA units create a master bedroom + Secured entry + Ability to add washer and dryer

10704 WHITMAN AVE N HIGHLIGHTS + 4 units constructed in 1986 + Open floor plans that make efficient use of units + Bottom floor units features an outdoor patio area + Shared lot line with neighboring 10 unit

SALE COMPS SUBJECT PROPERTY 1 3019 NE 130TH ST SEATTLE 2 9500 FREMONT AVE N SEATTLE PRICE / UNIT $228,125 PRICE / UNIT $275,714 PRICE / UNIT $300,000 PRICE / FT $241.99 PRICE / FT $292.65 PRICE / FT $420.29 CAP 5.02 CAP 4.23 CAP 5.4 GRM 12.74 GRM 15 GRM 13.6 BUILT 1989 BUILT 1996 BUILT 1992 UNITS 32 UNITS 7 UNITS 10 SALE DATE 10/16/2017 SALE DATE 10/10/2017 SALE DATE 3 514 NE 112TH STREET SEATTLE 4 11702 GREENWOOD AVE N SEATTLE 5 12527 ROOSEVELT WAY NE SEATTLE PRICE / UNIT $340,909 PRICE / UNIT $246,538 PRICE / UNIT $291,739 PRICE / FT $392.22 PRICE / FT $350.85 PRICE / FT $344.10 CAP 4.52 CAP 4.39 CAP 4.91 GRM 15.4 GRM 14.9 GRM 14.1 BUILT 1975 BUILT 1978 BUILT 1986 UNITS 11 UNITS 13 UNITS 23 SALE DATE 06/12/2017 SALE DATE 06/30/2017 SALE DATE 01/03/2018 6 2020 NE 89TH ST SEATTLE 7 11222-11244 GREENWOOD AVE N SEATTLE 8 3025 NE 137TH ST SEATTLE PRICE / UNIT $242,000 PRICE / UNIT $300,000 PRICE / UNIT $290,983 PRICE / FT $321.98 PRICE / FT $408.47 PRICE / FT $309.13 CAP 4.02 CAP 4.1 CAP GRM 15.2 GRM 15 GRM BUILT 1990 BUILT 1993 BUILT 1982 UNITS 25 UNITS 54 UNITS 61 SALE DATE 12/05/2017 SALE DATE 06/21/2018 SALE DATE 03/27/2018

SALE COMPS SUMMARY 1 2 3 4 5 6 7 8 SALE COMPS 3019 NE 130th 3019 NE 130th St Seattle, WA 98125 Soundcrest 9500 Fremont Ave N Seattle, WA 98103 514 NE 112th Street Seattle, WA 98125 Hahn 11702 Greenwood Ave N Seattle, WA 98133 Roosevelt Place 12527 Roosevelt Way NE Seattle, WA 98125 Maple Leaf Residences 2020 NE 89th St Seattle, WA 98115 Sierra on Greenwood 11222-11244 Greenwood Ave N Seattle, WA 98133 Park 3025 3025 NE 137th St Seattle, WA 98125 PRICE BLDG SF PRICE/SF PRICE/UNIT CAP GRM # OF UNITS CLOSE $1,930,000 6,595 SF $292.65 $275,714 4.23% 15 7 10/16/2017 $3,000,000 7,138 SF $420.29 $300,000 5.4% 13.6 10 10/10/2017 $3,750,000 9,561 SF $392.22 $340,909 4.52% 15.4 11 06/12/2017 $3,205,000 9,135 SF $350.85 $246,538 4.39% 14.9 13 06/30/2017 $6,710,000 19,500 SF $344.10 $291,739 4.91% 14.1 23 01/03/2018 $6,050,000 18,790 SF $321.98 $242,000 4.02% 15.2 25 12/05/2017 $16,200,000 39,660 SF $408.47 $300,000 4.1% 15 54 06/21/2018 $17,750,000 57,420 SF $309.13 $290,983 - - 61 03/27/2018 PRICE BLDG SF PRICE/SF PRICE/UNIT Totals/Averages $7,324,375 20,975 SF $354.96 $285,985 4.51% 14.74 25.5 CAP GRM # OF UNITS CLOSE

VALUE ADD ANALYSIS Although rents can be pushed as is condition, there is much more value to be captured any investor willing to renovate units upon turnover. We project market net operating income to be $415,440. Upon a market study, we found that minimal improvements to each unit would boost net operating income upwards of $72,445. The most cost-effective improvements we found, was the addition of a washer and dryer, replacement of floors and paint, and miscellaneous improvements such as light fixtures. We project that the improvement costs will be $13,500 per unit on average, or $432,000 for the whole building, plus an additional $100,000 for exterior paint and common area improvements. In all, this would make the renovation budget $532,000. With all of this considered, we project this improvement will add any where from $917,000 to $1,078,000 in potential value. Value Add Analysis $ 72,449 4.5% = $ 1,609,977-532,000 Cost (est.) Market NOI: $ 415,440 Renovated NOI: $ 487,889 $ 72,449 Cost of renovation is estimated at $532,000 ($13,500 per unit plus $100,000 for exterior work) Value Added = $ 1,077,977 ROI = 203% $ 72,449 4.75% = $ 1,525,242-532,000 Cost (est.) Value Added = $ 993,242 ROI = 187% $ 72,449 5.0% = $ 1,448,980-532,000 Cost (est.) Value Added = $ 916,980 ROI = 172%

FINANCIAL OFFERING PROPERTY OVERVIEW Number of Units 32 Year Constructed 1989 Rentable SF Lot Size Zoning PRICE ANALYSIS 26,404 SF 26,040 SF LR2 Sale Price $7,300,000 Price per Unit $228,125 Price per NRSF $280.34 Price per Land SF $280.33 Current Cap 5.02% Current GRM 12.74 Market Cap 5.81% Market GRM 11.52 FINANCING Loan Amount $4,745,000 Down Payment $2,555,000 Rate 4.5% % Down 35.0% Amortization 30 Term 2018 Years Monthly Payment $24,042 Annual Payment $288,507 The statements, figures & computations herein, while not guaranteed, are secured from sources we believe reliable. Investors should verify all numbers, computations, and assumptions before committing to an investment. # OF UNITS UNIT TYPE AVG SIZE CURRENT PSF PRO FORMA PSF 10 1 BD 1 BA 575 $1,195 $2.08 $1,295 $2.25 16 2 BD 1 BA 850 $1,495 $1.76 $1,595 $1.88 4 2 BD 1.5 BA 900 $1,495 $1.66 $1,650 $1.83 2 2 BD 2 BA 1,203 $1,495 $1.24 $1,695 $1.41 Total AVG $44,840 $1.77 $48,460 $1.91 INCOME CURRENT PRO FORMA Total Scheduled Rent $533,340 $581,520 + Other Income $7,188 $7,188 + Utility Bill Back $20,040 $32,640 + Parking $6,600 $6,600 + Storage $1,080 $1,080 + Laundry $4,800 $4,800 Scheduled Gross Income $577,7887,788 $633,828 - Vacancy & Cr Losses (5.00%) $28,652 $31,691 Gross Income $544,396 $602,137 EXPENSES CURRENT PER UNIT PRO FORMA PER UNIT RE Taxes $59,985 $1,874 $58,400 $1,825 Insurance $5,457 $170 $5,457 $170 Utilities $36,847 $1,151 $36,847 $1,151 Management $21,776 $680 $24,085 $752 Payroll / Admin $17,280 $540 $17,280 $540 Maintenance / Repairs $25,600 $800 $25,600 $800 Grounds $2,400 $75 $2,400 $75 Reserves $8,250 $257 $8,250 $257 Total Operating Expenses $177,595 $5,549 $178,319 $5,572 Net Operating Income $366,801 $11,462 $423,818 $13,244 Less Annual Debt Service ($288,507) ($9,015) ($288,507) ($9,015) Cash Before Taxes $78,294 $2,446 $135,311 $4,228

FINANCIAL SUMMARY INVESTMENT OVERVIEW CURRENT MARKET Price $7,300,000 $7,300,000 Price per Unit $228,125 $228,125 CAP Rate 5.02% 5.81% GRM 12.74 11.52 Cash-on-Cash Return (yr 1) 3.06% 5.3% Total Return (yr 1) $154,841 $211,858 Debt Coverage Ratio 1.27 1.47 OPERATING DATA CURRENT MARKET Gross Scheduled Income $533,340 $581,520 Other Income $39,708 $52,308 Total Scheduled Income $573,048 $633,828 Vacancy Cost $28,652 $31,691 Gross Income $544,396 $602,137 Operating Expenses $177,595 $178,319 Net Operating Income $366,801 $423,818 Pre-Tax Cash Flow $78,294 $135,311 FINANCING DATA CURRENT MARKET Down Payment $2,555,000 $2,555,000 Loan Amount $4,745,000 $4,745,000 Debt Service $288,507 $288,507 Debt Service Monthly $24,042 $24,042 Principal Reduction (yr 1) $76,547 $76,547

RENT ROLL 950 N 107TH ST UNITS BEDROOM / BATH SIZE RENT PSF MARKET MARKET PSF 101 1 x 1 565 $1,125 $1.99 $1,295 $2.25 102 1 x 1 575 $1,195 $2.07 $1,295 $2.25 201 2 x 1.5 900 $1,495 $1.66 $1,650 $1.83 202 2 x 1 850 $1,495 $1.76 $1,595 $1.87 203 2 x 1.5 850 $1,495 $1.76 $1,650 $1.83 204 2 x 1.5 900 $1,495 $1.66 $1,650 $1.83 301 2 x 1.5 900 $1,495 $1.66 $1,650 $1.83 302 2 x 1 850 $1,495 $1.76 $1,595 $1.87 303 2 x 1 850 $1,495 $1.76 $1,595 $1.87 304 2 x 1.5 900 $1,495 $1.66 $1,650 $1.83 10 8,140 SF $14,280 $15,625 Averages 814 SF $1,428 $1.77 $1,562 $1.93

RENT ROLL 10540-10544 WHITMAN UNITS BEDROOM / BATH SIZE RENT PSF MARKET MARKET PSF 10540-101 2 x 1 850 $1,495 $1.76 $1,595 $1.87 10540-102 2 x 1 850 $1,495 $1.76 $1,595 $1.87 10540-201 2 x 1 850 $1,495 $1.76 $1,595 $1.87 10540-202 2 x 1 850 $1,420 $1.67 $1,595 $1.87 10540-203 1 x 1 575 $1,195 $2.07 $1,295 $2.25 10540-204 1 x 1 575 $1,195 $2.07 $1,295 $2.25 10540-301 2 x 1 850 $1,495 $1.76 $1,595 $1.87 10540-302 2 x 1 850 $1,445 $1.70 $1,595 $1.87 10540-303 2 x 2 1,203 $1,495 $1.24 $1,695 $1.41 10544-101 2 x 1 850 $1,395 $1.70 $1,595 $1.87 10544-102 2 x 1 850 $1,495 $1.76 $1,595 $1.87 10544-201 2 x 1 850 $1,495 $1.76 $1,595 $1.87 10544-202 2 x 1 850 $1,495 $1.76 $1,595 $1.87 10544-203 1 x 1 575 $1,195 $2.07 $1,295 $2.25 10544-204 1 x 1 575 $1,195 $2.07 $1,295 $2.25 10544-301 2 x 1 850 $1,495 $1.76 $1,595 $1.87 10544-302 2 x 1 850 $1,495 $1.76 $1,595 $1.87 10544-303 2 x 2 1,203 $1,495 $1.24 $1,695 $1.41 18 14,905 SF $25,485 $27,710 Averages 828 SF $1,416 $1.76 $1,539 $1.90

RENT ROLL 10704 WHITMAN UNITS BEDROOM / BATH SIZE RENT PSF MARKET MARKET PSF 101 1 x 1 575 $1,195 $2.07 $1,295 $2.25 102 1 x 1 575 $1,095 $1.90 $1,295 $2.25 201 1 x 1 575 $1,195 $2.07 $1,295 $2.25 202 1 x 1 575 $1,195 $2.07 $1,295 $2.25 4 2,300 SF $4,680 $5,180 Averages 575 SF $1,170 $2.02 $1,295 $2.25

LOAN OPTIONS LOAN OPTIONS FOR WHITMAN - BRIDGE OR STABILIZED PROGRAMS - LOAN DOLLARS RANGE FROM 60% LTV TO 75% LTC - FLEXIBLE PREPAYMENT OPTIONS - RATES STARTING IN THE MID 4% - MARKET CLOSING TIME 60-90 DAYS

NORTH SEATTLE NORTH SEATTLE NORTHGATE Northgate is one of the largest neighborhoods in north Seattle. The area is comprised of a number of smaller communities, including Pinehurst, North College Park, and Maple Leaf. The main attraction to this area is the Northgate Mall, which is conveniently located off of I-5, exit Northgate Way. The mall features major department stores, retail shops and restaurants. Beyond the shopping and eating convenience, a bus transit transfer station and commuter parking lot are adjacent to I-5. Although the mall is the neighborhood s largest pull, Northgate is home to the North Seattle Community College (NSCC), the south fork of the Thornton Creek watershed, and the Sheihk Idriss Mosque, known for its unique and distinctive architechture. Named for Northgate Mall, a shopping center built in 1950, the Northgate neighborhood is dense and decidedly suburban. The mall was the idea of Rex Allison, then-president of Bon Marche (now Macy s), and was deliberately sited north of the city for urban shoppers who would travel by car from the nearby highway. Among the first such malls in the nation, Northgate made national headlines in its early years of operation. NORTH SEATTLE The North Seattle area has experienced a surge of newer condo and townhome development. These, alongside the existing classic Craftsman bungalows and Northwest Modern homes, offer something for single professionals, couples, and growing families. This retail-fueled community is an easy commute to Seattle as well as to Snohomish County. It offers easy access to I-5, bus lines and a new Link lightrail extension is opening in 2021, with new infrastructure modifications to improve walkability and bike-friendliness. Roosevelt Way, the major thoroughfare, provides an array of shopping, coffeehouses, pubs and restaurants, along with many community-based events. The arterial road spans from the University District, connecting the University of Washington to the residential areas of neighborhoods like Ravenna, Lake City, Northgate, and Shoreline. The neighborhood lacks parks, but locals can walk a 4-mile route along Thornton Creek, which has benefited from watershed restoration efforts in recent years. The Northgate Community Center offers a fitness facility with a nominal drop-in fee. The center rents meeting and party rooms, and the center and the local branch of the Seattle Public Library offer children s programs. Northgate is home to several health clubs, and is just a few minutes by bike or car to sports options at Green Lake. NORTH SEATTLE COMMUNITY COLLEGE JACKSON PARK GOLF COURSE WESTLAKE ASSOCIATES, INC.

NORTHGATE LINK LIGHT RAIL

NORTHGATE LINK LIGHT RAIL Passengers began riding Link light rail trains between downtown Seattle and Sea-Tac Airport in 2009, and to Capitol Hill and the University of Washington in March 2016. A light rail extension south to Angle Lake is scheduled to open late 2016. Construction is also underway on the Northgate Link Extension, which will take light rail riders north to the U District, Roosevelt and Northgate neighborhoods by 2021. Northgate Link is a key part of the regional mass transit system approved by voters in 2008. The 4.3-mile line will provide a fast, reliable option for getting through one of the region s most congested areas. Most of Northgate Link is underground in twin-bored tunnels, with trains moving to the surface at a tunnel portal on the east side of Interstate 5 at about NE 94th Street. From the portal, trains will rise to an elevated guideway moving north alongside I-5 before crossing over First Avenue NE, south of NE 100th Street and connecting to the elevated Northgate Station spanning NE 103rd Street. Excavation at the Maple Leaf tunnel portal site was completed in 2014. Two tunnel boring machines (TBMs) were launched from the site that same year. One TBM completed its journey to the University of Washington Station in March 2016. The second tunnel is expected to be completed by late 2016. As tunneling progresses, construction crews are digging small safety cross-passages tht connect the northbound and southbound train tunnels. Soon crews will begin building the stations ad the elevated guideway connecting the tunnel portal to Northgate Station. For more information, you can visit the website: soundtransit.org/northlink.

BROKER BIO & CONTACT STEVE FISCHER Principal Broker 1200 Westlake Ave N, Suite 310 Seattle, WA 98109 T 206.505.9435 C 425.830.2254 fischer@westlakeassociates.com TYLER SMITH Principal Broker 1200 Westlake Ave N, Suite 310 Seattle, WA 98109 T 206.505.9425 C 206.612.2475 tylersmith@westlakeassociates.com JOE KINKOPF Broker 1200 Westlake Ave N, Suite 310 Seattle, WA 98109 T 206.505.9403 C 206.321.8344 joek@westlakeassociates.com PROFESSIONAL BACKGROUND A lifetime resident of the Seattle area, Steve graduated from the University of Washington with a degree in Economics. Beginning his real estate career as an analyst, his work ethic quickly transitioned from analyst to full time apartment broker. Since the inception of his brokerage career, Steve has successfully closed over $100 million in sales totaling over 100 transactions. To expand his skill set, Steve also manages a portfolio of 130 apartment units in the Seattle area. Steve excels at problem solving to complete his client s investment goals. His diverse background of brokerage and management provide a unique spectrum of knowledge. Drawing from this knowledge allows him to guide his clients not only through the sales process, but to also navigate the operational side of owning an apartment building. He truly is A Wealth of Experience. A firm believer of investing in real estate as a module to gain wealth, Steve has been actively investing in Seattle real estate since 2011. In 2012, he was unanimously voted a partner at Westlake Associates, Inc. Away from the office, Steve is a huge sports fan, enthusiast of the outdoors, enjoys cooking, an avid soccer player and a die-hard husky. PROFESSIONAL BACKGROUND For over 13 years, Tyler has specialized in the sale of middle market multi-family assets in the Puget Sound Region. Tyler s extensive experience includes the sale of various types of asset size and classifications. As an apartment owner himself, Tyler understands the importance of evaluating each client s needs individually and carefully. Since joining Westlake Associates, he has consistently been one of the firm s top performers and quickly rose to Partner. Tyler s consistent effort and drive have earned him Westlake Associates Top Producer award. Education Tyler earned a degree in economics from the University of Washington. Tyler worked in finance for a company headquartered in Irvine, CA before returning home to the Pacific Northwest. He joined Westlake Associates in 2004 and currently resides with his wife and two boys in Northeast Seattle. PROFESSIONAL BACKGROUND Joe specializes in the sale of multifamily properties in the Puget Sound. Upon graduation from the University of Washington, Joe began his career at Westlake. Growing up in North King County, Joe acquired a fascination with real estate after seeing the great change in his hometown as a result of urban growth. Joe enjoys looking at the numbers and analyzing different markets throughout the Puget Sound region to help his clients make the right investment decisions. Joe stresses the importance integrity and believes that dealing honestly with clients is the greatest priority in business.