Edison Neighborhood Center - Aerial with property boundary lines

KIP Development, Pullman s choice for Quality P.O. Box 642, Pullman, Washington 99163 Telephone: 509.334.7444, Fax: 509.334.4197, Email: kkirkman@kipdev.com Contact Information Kevin Kirkman Phone: 509-595-3533 Email: kkirkman@kipdev.com Edison Center Neighborhood Center Offering Memorandum: June 2017 Offering Price: $2,400,000. CAP Rate: 6 % based on 2016 actual income and expense Terms: Cash at Closing Preferred closing Date: 2017 Seller 1031 Exchange: Yes Cooperating Selling RE Brokers = 2.5% Property Summary & Overview The Edison Neighborhood Center consists of three separate lots and three separate buildings these are 588, 594 and 560 SE Bishop Blvd. This offering is for 588 & 594 SE bishop Blvd. The out parcel; 560 SE Bishop Blvd is owned by third party (Dan David -optometrist) and is not part of the sale offering. Hard corner location at intersection serving the main entrance to Walmart. Well maintained premises with no deferred maintenance. A common driveway and joint maintenance agreement is in place to allow common access over the though the adjoining parcels, customer & employee parking is not restricted to any lot or location Subject property consists of two buildings on two separates legal lots the original building 588 SE Bishop was completed in fall of 1997 and the second building 594 SE Bishop Blvd was completed in summer 2003. The primary entrance is located on Bishop Blvd. The property is served by three public access driveways to the following city streets, Shoemaker Place, Harvest Drive and Bishop Blvd. Approximately 80 shared car parks located over all three lots. One communal dumpster services all premises and is located in the NW corner of the property all disposal fees are passed through to tenants based on their prorated share. 588 & 594 SE Bishop are served by single water service & meter for each building -all charges related to water, sewer and storm fees are passed through to tenants based on their prorated share. 588 & 594 SE Bishop are each served by one house electric meter & panel that supplies exterior lighting, sign lighting and parking lot lighting. House electrical charges are passed through to tenants based on their prorated share.

Premises is not fire sprinkled nor is it required to be. Premises is fully ADA accessible including complaint parking spaces. All restrooms within the premises are ADA accessible. In 2010 approximately 3000 sq. ft. of asphalt paving was removed and replaced with new. In 2015 approximately 3500 sq. ft. of asphalt paving was removed and replaced with new. All units are served by Gas fired forced air furnaces with rooftop mounted A/C units. Converted all exterior lighting including parking lots lighting to LED in 2016. Edison Neighborhood Center - Aerial with property boundary lines General Information - 588 SE Bishop Blvd Legal Description: Lot 1, KIP Development short plat No.1 Lot size: 37,208 Square Feet Building: Group M, type VN Zoning: C3 Building Size: 9400 Square feet Suites -Seven Suites: units A- G o Suite A Pullman Sport Physical Therapy 2000 Square Feet o Suite B Rising Stars Dance Studio 1,500 Square Feet o Suite C & D Circles of Caring - Adult Daycare 3,000 Square Feet Can be subdivided into two separate suites includes separate electrical services o Suite E & F -Real Life Church 2,000 Square Feet Can be subdivided into two separate suites -includes separate electrical services

o Suite G, - Cask Restaurant / Bar 900 Square feet Construction is wood frame and CMU concrete block Concrete slab on grade Non-fire sprinkled -Does Include several one-hour fire separation walls demising the premises New single ply membrane roof installed in 2008 over rigid foam insulation on top of roof deck (DOW) with assignable warranty through 10-20-2023 Gas fired Furnace was replace unit A in January 2015 General Information - 594 SE Bishop Blvd Legal Description: Lot 2, KIP Development short plat No.1 Lot size: 12,648 Square Feet Building: Group M, type VN Zoning: C3 Size: 4400 Square feet Suites -Seven Suites: units A- G o Suite 101 Nail Art Spa 1230 Square Feet o Suite 102 KIP Development -Real Estate Development & Property Management 1,450 Square Feet o Suite 103 Rural Resources - public agency 480 Square Feet o Suite 104 Buck and Affiliates - Insurance 1,040 Square Feet Includes one mechanical room with exterior access with roof hatch access Construction is wood frame with Brick veneer wainscot Wood floor joist with commercial load rating of 120lbs per square foot over crawl space Non-fire sprinkled -Includes one hour fire separation walls Single ply membrane roof Crawl space access provides for easy plumbing changes to meet tenant needs. Common Area Maintenance: CAM: Charge Distribution 588 SE Bishop Blvd 9,400 Sq. Ft 560 SE Bishop Blvd 1,900 Sq. Ft Dan David - Out Parcel 594 SE Bishop Blvd 4,190 Sq. Ft Total 15,490 Sq. Ft CAM #1; Includes the following Common area expenses that apply to the Edison Center Including: garbage snow removal, yard maintenance & ground keeping employee or subcontracted labor, exterior parking lot maintenance repair house electrical panels, any other expense that benefits the Edison center as a whole. Does not included tenant specific repairs for their units

CAM #2; Expenses that affect Edison Center excepting; 560 SE Bishop Blvd. Including property tax billings, Insurance billings, building specific water sewer billings, also, any repair or maintenance that does not benefit 560 SE Bishop Blvd. CAM Allocation - Edison Center 588 SE Bishop Blvd CAM #1 CAM #2 Suite A 2,000 Sq. Ft 13% 14% Suite B 1,500 Sq. Ft 10% 12% Suite C & D 3,000 Sq. Ft 17.5% 21% Suite E & F 2,000 Sq. Ft 13% 15% 560 SE Bishop Out parcel Shared Drive & Parking Dan David 1,900 Sq. Ft. 12.5% N/A 594 SE Bishop Blvd Suite 101 1,230 Sq. Ft 8% 9% Suite 102 1,450 Sq. Ft 9.75% 10.5% Suite 103 480 Sq. Ft 3.25% 3.5% Suite 104 1,040 Sq. Ft 7% 8% Total 15,490 Sq. Ft 100% 100% Lease Summary Information and Terms: Note all Leases are Triple NNN terms Pullman Sports Physical Therapy (long term tenants) 588 SE Bishop Blvd, Suite A Size: 2000 Square feet Current Rent: $2,616. Per month or $15.69 per sq. foot- 6/01/15 to 5/31/2017- Plus CAMS $2,709. Per month or $16.25 per sq. foot- 6/01/17 to 5/31/2019- Plus CAMS $2,818. Per month or $16.90 per sq. foot- 6/01/19 to 5/31/2021- Plus CAMS Lease Termination: 5/31/2021 Early lease termination option: Tenant has option to terminate the lease by giving notice (only between January 1-15 th of each year) for the lease to terminate on May 31 st of the year which notice is given Additional Renewal Options: No Rising Stars Dance Studio (pending Vacancy- marketing for rent) 588 SE Bishop Blvd, Suite B Size: 1500 Square feet Current Rent: $1,500.00 per month or $12.00 per Sq. foot- plus CAMS Lease Termination: 6/30/17 Marketing premises for rent Circles of Caring (non-profit) 588 SE Bishop Blvd, Suite C & D Size: 3000 Square feet Current Rent: $2,300 per month or $9.20 per Sq. Ft from 02-01-2015 to 06-30-2019 Plus CAM s Lease Termination: 06/30/2019 Early lease termination option: Tenant has option to terminate the lease by giving 45-day prior written notice after September 30, 2014.

Option to Renew: One 5-year term, starting 07-01-2019 to 06-28-2024, 180 days Prior Notice required exercising or by January 31, 2019. Rent during Option Period: mutually agreed upon. Real Life Church (non-profit) 588 SE Bishop Blvd, Suite E & F & Lower portion of Pole Sign Size: 2000 Square feet Current Rent: $1530 per month through 6-30- 2017 Plus CAM s $1,665 per month or $9.99 per Sq. Ft 07-01-2017 to 06-30-2019 Plus CAM s Lease Termination: 06/30/2019 Early lease termination option: Tenant has option to terminate the lease by giving written notice of 120 days. Early termination date and move out shall not be prior to March 31, 2015. Option to Renew: One -5-year term, starting 07-01-2019 to 06-28-2024, 120 days Prior Notice required exercising or by February 28, 2019. Rent during Option Period: $2,000 per month plus CAM s fixed rate for 5-years Cask Harbour Hospitality -Jim Harbour (new tenant -very successful to date) 588 SE Bishop Blvd, Suite G Size: 900 Square feet Current Rent: $1,400 per month or $18.66 per Sq. foot, -Plus CAM Charges Lease Termination: 7/31/2019 Option to Renew: two extended terms of 3- years each, starting 8/01/2019; Notice required exercising option: 90 days or by April 30th, 2019 and April 30 th, 2022 Renewal Option #1 rent $1,500 per month, Renewal Option #2 rent $1,600 per month 588 SE Bishop, Pole Sign B Included in Cask lease Size: 72 Square feet signage Rent: N/A Nail Art Spa (long term tenant) 594 SE Bishop Blvd, Suite 101 Size: 1245 Square feet Current Rent: $1,890 per month or $18.21 per Sq. foot- plus CAMS Lease Termination: 08/31/20 Option to Renew # 1: One 60-month term starting 09/01/2020 to 08/31/2025 Notice required exercising option: 90 days notice or June 1, 2020 Rent Option Period #1: $1,840 per month or $17.73 per sq. ft. plus CAMS Additional renewal Options: NA 588 SE Bishop, Pole Sign A included in Nail art spa Size: 72 Square feet signage Rent: N/A KIP Development / sublet Lori Bobo -two offices, suite 102.5 (long term tenant) 594 SE Bishop Blvd, Suite 102 Size: 1450 Square feet Current Rent: $1,879.00 per month or $15.55 per Sq. foot- plus CAMS Month to Month Rural Resources (Government job service agency) 594 SE Bishop Blvd, Suite 103 Size: 555 Square feet Current Rent: $760 per month or $16.43 per Sq. foot- plus CAMS Lease Termination: 10/31/2020 Option to renew: One 5-year option with 90-days prior notice at $836 per month Early lease termination option: Tenant has option to terminate the lease by giving 120-day prior notice if grant funding for Whitman County is terminated

Buck & Affiliates Insurance West (long term tenant) 594 SE Bishop Blvd, Suite 104 Size: 1040 Square feet Current Rent Schedule: $1,529.46 per month or $17.64 per Sq. Foot- plus CAM s Lease Termination: 03/31/18 Option to Renew # 1: 24-month term starting 04/01/2018 to 03/31/2020 Notice required exercising option: 120-days notice or January 1, 2018 Re-calculate rent -suite 104 - Buck & affiliates- effective April 1 2016, initial rent increase CPI from October 1, 2012 to March 1, 2016, Annual rent increases there after effective April 1 each year through April 1 2020 Additional renewal Options: No Closing Stewart Title of Whitman County Title Stewart Title of Whitman County Preliminary Title Report - Available upon accepted PSA Additional Documents - available by request Site plan 594 SE Bishop Blvd Site plan 588 SE Bishop Blvd Plat maps Recorded common driveway access and maintenance Easements & agreements Financial Reports Current Rent Roll dated 6-5-2017 Difference between market rent and recurring charge is additional monthly reimbursement for estimated property tax Rent Roll As of 6/5/2017, Edison Center, Current leases, All units Edison Center Unit Tenants Lease Start Lease End Bed/Bath Sq.Ft. Market Rent Recurring Charges Edison Center 560 SE Bishop Blvd Family Eye Clinic Dan David,- Cam Charges only -560 SE Bishop 8/26/2008 at-will - / - 1900 $0.00 $0.00 Suite 101 Nail Art Spa 8/1/2015 8/31/2020 - / - 1235 $1840.00 $2000.00 Suite 102 Kevin Kirkman 8/26/2008 at-will - / - 1180 $1525.00 $1525.00 Suite 102.5 Alan & Lori Bobo 3/1/2011 at-will - / - 275 $354.00 $354.00 Suite 103 Rural Resources Community Action 10/15/2015 10/31/2020 - / - 569 $760.00 $835.00 Suite 104 Benzel & Associates, Inc. dba Buck & Affiliates Insurance West 10/1/2012 3/31/2018 - / - 1040 $1529.00 $1659.46 Suite A Pullman Sports Physical Therapy _ 2/1/2009 5/31/2021 - / - 2000 $2709.00 $2933.00 Suite B Rising Stars Dance Studio 11/1/2014 6/30/2017 - / - 1500 $1500.00 $1690.00 Suites C & D Circles of Caring Adult Day Health Foundation, Inc. 7/1/2014 6/30/2019 - / - 3000 $2300.00 $2625.00 Suites E & F Real Life Ministries-Moscow, Inc. 7/10/2014 6/30/2019 - / - 2000 $1665.00 $1800.00 Suites G Harbour Hospitality dba The Cask 2/1/2017 7/31/2025 - / - 900 $1400.00 $1540.00 Upside & Financial Projection Many of the rents are below market with upside potential. Many long term tenants, vacancies usualy take 60 to 120 days to fill. The space demand has shifted from retail in the past to service type business and office space over the past 10-years. Partial or full redevelopement potential in the future with large upside potential.

2017 YTD Income and Expense: Dated June 5, 2017 Income Statement 1/1/2017-6/5/2017, By Year, Cash basis Edison Center 2017 Total Income Late Fee Income $90.94 $90.94 Maintenance, Repairs & Utility Utility Reimbursement Income $525.00 $525.00 Total for Maintenance, Repairs & Utility $525.00 $525.00 Rent Income $87414.80 $87414.80 U - CAM: Income - Heading Only Electricity: CAM Reimbursement $1078.06 $1078.06 Insurance: CAM Reimbursement $150.00 $150.00 Maintenance & Repairs: CAM Reimbursement $3105.67 $3105.67 Property Tax: CAM Reimbursement $9589.00 $9589.00 Snow Removal: CAM Reimbursement $2680.73 $2680.73 Trash Removal: CAM Reimbursement $1717.90 $1717.90 Water/Sewer/Storm: CAM Reimbursement $1510.25 $1510.25 Total for U - CAM: Income - Heading Only $19831.61 $19831.61 Total Income $107862.35 $107862.35 Expense Maintenance -Heading Only Cleaning & Janitorial & Turn Over Labor $90.00 $90.00 Fuel for Maintenance landscape & Repairs $101.29 $101.29 Maintenance, Landscaping & Repairs KIP employees $2531.25 $2531.25 Snow Removal $1833.00 $1833.00 Subcontracted Repairs & Maintenance $48.46 $48.46 Total for Maintenance -Heading Only $4604.00 $4604.00 Management Fees Management Fees - Other $5074.91 $5074.91 Total for Management Fees $5074.91 $5074.91 Office Expenses -Heading Only Recording Fees & Title Insurance $74.00 $74.00 Total for Office Expenses -Heading Only $74.00 $74.00 Property Taxes $8716.29 $8716.29 Utilities -Heading only Electricity House Meters $2115.08 $2115.08 Trash Removal Expense $1552.84 $1552.84 Water / Sewer / Storm Expense $1410.31 $1410.31 Total for Utilities -Heading only $5078.23 $5078.23 Total Expense $23547.43 $23547.43 Net Operating Income $84314.92 $84314.92 Non-operating Expense Non-Operating Expenses - Heading Only Computer hardware and software $24.78 $24.78 Office Supplies $511.84 $511.84 Total for Non-Operating Expenses - Heading Only $536.62 $536.62 Total Non-operating Expense $536.62 $536.62 Net Non-operating Income -$536.62 -$536.62 Net Income $83778.30 $83778.30

2016 Income and Expense: Actual Income Statement 1/1/2016-12/31/2016, By Year, Cash basis Edison Center 2016 Total Income Late Fee Income $221.90 $221.90 Maintenance, Repairs & Utility Maintenance, Repairs & Utility - Other $45.75 $45.75 Total for Maintenance, Repairs & Utility $45.75 $45.75 Rent Income $178229.78 $178229.78 U - CAM: Income - Heading Only Backflow Testing: CAM Reimbursement $41.10 $41.10 Electricity: CAM Reimbursement $2739.97 $2739.97 Insurance: CAM Reimbursement $3911.32 $3911.32 Maintenance & Repairs: CAM Reimbursement $10469.68 $10469.68 Property Tax: CAM Reimbursement $19691.13 $19691.13 Snow Removal: CAM Reimbursement $361.97 $361.97 Trash Removal: CAM Reimbursement $3459.41 $3459.41 Water/Sewer/Storm: CAM Reimbursement $3592.92 $3592.92 Total for U - CAM: Income - Heading Only $44267.50 $44267.50 Total Income $222764.93 $222764.93 Expense Advertising -Heading Only Signs or Graphics $1328.60 $1328.60 Total for Advertising -Heading Only $1328.60 $1328.60 Insurance $3864.00 $3864.00 Maintenance -Heading Only Cleaning & Janitorial & Turn Over Labor $175.50 $175.50 Fuel for Maintenance landscape & Repairs $345.12 $345.12 Maintenance, Landscaping & Repairs KIP employees $6437.60 $6437.60 Snow Removal $166.93 $166.93 Subcontracted Repairs & Maintenance $23147.83 $23147.83 Total for Maintenance -Heading Only $30272.98 $30272.98 Management Fees Management Fees - Other $12357.11 $12357.11 Total for Management Fees $12357.11 $12357.11 Property Taxes $18551.76 $18551.76 Utilities -Heading only Electricity House Meters $5187.28 $5187.28 Trash Removal Expense $3696.79 $3696.79 Water / Sewer / Storm Expense $3707.19 $3707.19 Total for Utilities -Heading only $12591.26 $12591.26 Total Expense $78965.71 $78965.71 Net Operating Income $143799.22 $143799.22 Non-operating Expense Non-Operating Expenses - Heading Only Office Supplies $915.63 $915.63 Total for Non-Operating Expenses - Heading Only $915.63 $915.63 Total Non-operating Expense $915.63 $915.63 Net Non-operating Income -$915.63 -$915.63 Net Income $142883.59 $142883.59

2015 Income and Expense: Actual Income Statement 1/1/2015-12/31/2015, By Year, Cash basis Edison Center 1/1/2015-12/31/2015 Total Income Late Fee Income $43.05 $43.05 Maintenance, Repairs & Utility Cleaning and Maintenance Reimbursements $77.60 $77.60 Maintenance, Repairs & Utility - Other $44.56 $44.56 Total for Maintenance, Repairs & Utility $122.16 $122.16 Rent Income $179848.08 $179848.08 U - CAM: Income - Heading Only Backflow Testing: CAM Reimbursement $84.20 $84.20 Electricity: CAM Reimbursement $3645.46 $3645.46 Insurance: CAM Reimbursement $4781.78 $4781.78 Maintenance & Repairs: CAM Reimbursement $18020.04 $18020.04 Property Tax: CAM Reimbursement $18410.82 $18410.82 Snow Removal: CAM Reimbursement $173.71 $173.71 Tenant Improvements -CAM Reimbursement $15000.00 $15000.00 Trash Removal: CAM Reimbursement $3447.15 $3447.15 Water/Sewer/Storm: CAM Reimbursement $3695.20 $3695.20 Total for U - CAM: Income - Heading Only $67258.36 $67258.36 Total Income $247271.65 $247271.65 Expense Insurance $4314.00 $4314.00 Maintenance -Heading Only Carpet Shampoo Expense $347.91 $347.91 Cleaning & Janitorial & Turn Over Labor $454.77 $454.77 Fuel for Maintenance landscape & Repairs $843.86 $843.86 Maintenance, Landscaping & Repairs KIP employees $19566.59 $19566.59 Snow Removal $252.00 $252.00 Subcontracted Repairs & Maintenance $10309.32 $10309.32 Total for Maintenance -Heading Only $31774.45 $31774.45 Management Fees Management Fees - Other $13709.32 $13709.32 Total for Management Fees $13709.32 $13709.32 Office Expenses -Heading Only Recording Fees & Title Insurance $147.00 $147.00 Total for Office Expenses -Heading Only $147.00 $147.00 Property Taxes $18730.56 $18730.56 Utilities -Heading only Electricity and Gas, Vacant Units $234.30 $234.30 Electricity House Meters $6976.14 $6976.14 Trash Removal Expense $3716.32 $3716.32 Water / Sewer / Storm Expense $3710.49 $3710.49 Total for Utilities -Heading only $14637.25 $14637.25 Total Expense $83312.58 $83312.58 Net Operating Income $163959.07 $163959.07 Non-operating Expense Capital Improvements -Heading Only 2010-2015 Latah Remodel $33.93 $33.93 2015 - Remodels $565.45 $565.45 Suite 101 Remodel 2015 $20039.21 $20039.21 Total for Capital Improvements -Heading Only $20638.59 $20638.59 Non-Operating Expenses - Heading Only Office Supplies $689.72 $689.72 Total for Non-Operating Expenses - Heading Only $689.72 $689.72 Total Non-operating Expense $21328.31 $21328.31 Net Non-operating Income -$21328.31 -$21328.31 Net Income $142630.76 $142630.76

2014 Income and Expense: Actual Income Statement 1/1/2014-12/31/2014, By Year, Cash basis Edison Center 1/1/2014-12/31/2014 Total Income Late Fee Income $86.84 $86.84 Rent Income $146049.19 $146049.19 U - CAM: Income - Heading Only Backflow Testing: CAM Reimbursement $64.70 $64.70 Electricity: CAM Reimbursement $3337.01 $3337.01 Groundskeeping: CAM Reimbursement $0.75 $0.75 Insurance: CAM Reimbursement $4049.85 $4049.85 Maintenance & Repairs: CAM Reimbursement $14684.86 $14684.86 Property Tax: CAM Reimbursement $12610.66 $12610.66 Snow Removal: CAM Reimbursement $371.04 $371.04 Trash Removal: CAM Reimbursement $2664.61 $2664.61 Water/Sewer/Storm: CAM Reimbursement $2101.17 $2101.17 Total for U - CAM: Income - Heading Only $39884.65 $39884.65 Total Income $186020.68 $186020.68 Expense Advertising -Heading Only Signs or Graphics $539.00 $539.00 Total for Advertising -Heading Only $539.00 $539.00 Bank Fees -Heading Only Credit Card Processing Fees $48.37 $48.37 Total for Bank Fees -Heading Only $48.37 $48.37 Insurance $4709.00 $4709.00 Maintenance -Heading Only Cleaning & Janitorial & Turn Over Labor $737.90 $737.90 Fuel for Maintenance landscape & Repairs $1073.06 $1073.06 Maintenance, Landscaping & Repairs KIP employees $18410.15 $18410.15 Snow Removal $480.00 $480.00 Subcontracted Repairs & Maintenance $1448.06 $1448.06 Total for Maintenance -Heading Only $22149.17 $22149.17 Management Fees Management Fees - Other $11232.13 $11232.13 Total for Management Fees $11232.13 $11232.13 Office Expenses -Heading Only Recording Fees & Title Insurance $222.00 $222.00 Total for Office Expenses -Heading Only $222.00 $222.00 Property Taxes $18596.30 $18596.30 Utilities -Heading only Electricity and Gas, Vacant Units $818.95 $818.95 Electricity House Meters $7072.31 $7072.31 Trash Removal Expense $3708.79 $3708.79 Water / Sewer / Storm Expense $3200.04 $3200.04 Total for Utilities -Heading only $14800.09 $14800.09 Total Expense $72296.06 $72296.06 Net Operating Income $113724.62 $113724.62 Non-operating Expense Capital Improvements -Heading Only 2015 - Remodels $2962.43 $2962.43 Total for Capital Improvements -Heading Only $2962.43 $2962.43 Non-Operating Expenses - Heading Only Office Supplies $1164.98 $1164.98 Settlement Charge Claim -$14.86 -$14.86 Total for Non-Operating Expenses - Heading Only $1150.12 $1150.12 Total Non-operating Expense $4112.55 $4112.55 Net Non-operating Income -$4112.55 -$4112.55 Net Income $109612.07 $109612.07

Floor plans Suite A & B Suite B

Suite C & D Suite E & F

Suite G Suite 101

Suite 102 & 103 Suite 104