Smokey Point Plaza ARLINGTON, WASHINGTON

ESTABLISHED RETAIL CENTER IN A MAJOR SHOPPING DESTINATION

Overview Smokey Point Plaza 3323 169TH PLACE NE, ARLINGTON, WA 98223

PAGE 5 Investment Summary LEASEABLE SF ±24,180 LAND AREA ±89,298 SF AVG RENT PER SF $20.21 PRICE PER SF $252 YEAR BUILT 1996 PARKING ±106 Spaces; 4.38/1,000 SF $6,100,000 PRICE 7.20% CAP THE OFFERING provides an opportunity to acquire a stabilized, 92% occupied retail center leased to 15 national and local tenants in Smokey Point, a booming, dynamic submarket of north Snohomish County. The Property benefits from increased draw to the trade area provided by adjacent Tractor Supply and a Lowe s Home Improvement store, with excellent accessibility to and from Interstate 5, located 1/4 mile from the Property. Smokey Point Plaza is situated in a dense retail pocket at the intersection of I-5 and Highway 531, which has experienced tremendous growth in the last 10 years adding several national retailers, including Costco, Target and Walmart. Overview

Investment Highlights The highlights NNN LEASE STRUCTURE OF TENANTS INSULATES LANDLORD FROM INCREASING COSTS OF OPERATING EXPENSES. THE NEW 4,100 SF SNO-ISLE LIBRARY OPENED THE BEGINNING OF 2018, WITH A LEASE GUARANTEE FROM SNOHOMISH AND ISLAND COUNTIES. RENTAL UPSIDE PROVIDED BY SCHEDULED ANNUAL RENT BUMPS FOR 70% OF TENANTS. LOCATED IN DYNAMIC RETAIL SUBMARKET OF NORTH SNOHOMISH COUNTY. PROPERTY BENEFITS FROM LONG TERM TENANCY OF 5+ YEARS FOR 58% OF THE GLA, INCLUDING PAPA MURPHY S, CLEANERS, TOKYO HOUSE, AND HAIR MASTERS. EXPOSED TO 100,000+ VEHICLES PER DAY. INCREASED DAILY DRAW PROVIDED BY CONCENTRATION OF SURROUNDING NATIONAL RETAILERS PULLING FROM A WIDE DEMOGRAPHIC BASE WITHIN A FIVE MILE RADIUS. HIGHLY ACCESSIBLE LOCATION LESS THAN A QUARTER MILE FROM INTERSTATE 5 INTERCHANGE.

PAGE 7 NEQUATEM DOLEST FUGA. ET ETUM QUE LAUT FACES LOCATED WITHIN MAJOR SHOPPING DESTINATION OFF FREEWAY INTERCHANGE ADJACENT TO A LOWE S HOME IMPROVEMENT AND TRACTOR SUPPLY ALONG WITH A BRAND NEW HABITAT FOR HUMANITY STORE - SLATED FOR SUMMER 2018. CLOSE PROXIMITY TO DEVELOPMENTS ON INTERSTATE 5, TULALIP RESORT AND CASINO, AND SEATTLE PREMIUM OUTLETS. Investment Highlights

Tenants Lease Tenancy Breakdown 58% OF TENANTS HAVE OCCUPIED SPACE 5+ YEARS. 36% 22% 12% 22% 8% 10+ YEARS 5+ YEARS 3+ YEARS <1 YEARS AVAILABLE

Tenant Mix PAGE 9 THE PROPERTY IS CURRENTLY 92% OCCUPIED, utilizing its competitive rents and economic growth in the market area to stimulate recent leasing activity. The dynamic mix of food, retail, and personal/professional uses compliments one another and benefits from daily draw provided by surrounding national box retailers. The bulk of the GLA is leased for restaurant and personal services, insulating the center from online retail. 28% 36% 17% 11% 8% RESTAURANT SMOKEY POINT BAKERY & CAFE TOKYO HOUSE PHO DAT VIETNAMESE PAPA MURPHY S BASKIN ROBBINS PERSONAL SMOKEY POINT CLEANERS HAIRMASTERS CK NAILS & SPA SENSES SPA SNO-ISLE LIBRARY RETAIL J-LEE FLOORS PROGROW I-DOCTOR PROFESSIONAL AMERICAN INSURANCE SMOKEY POINT LICENSING AVAILABLE BALANCED LEASE ROLLOVER SCHEDULE Tenants

Surrounding Retail Business summary TOTAL 1-MILE 3-MILES 5-MILES Businesses 450 1,146 2,209 Employees 4,899 13,920 27,929 Population 6,930 27,906 60,183 KEY 1-MILE 3-MILES 5-MILES MAJOR RETAIL Best Buy Costco Fred Meyer Goodwill Grocery Outlet Home Depot JoAnn Fabrics THE MARKETPLACE AT SMOKEY POINT Dick s Sporting Goods Kohl s Marshalls McDonald s Michaels Office Depot Petco Petsmart Rite Aid Firehouse Subs Fitness Evolution Hobby Lobby Ross Dress for Less Safeway Sherwin Williams Starbucks Target Walmart Supercenter WinCo Outback Steakhouse Party City Tuesday Morning SEATTLE PREMIUM OUTLETS Adidas Factory Outlet Armani Banana Republic Burberry Calvin Klein DVF Gap Factory Outlet Kate Spade Nike Factory Outlet The North Face Restoration Hardware Tuesday Morning

THE MARKETPLACE AT SMOKEY POINT 39,000 VPD PAGE 11 531 531 SMOKEY POINT PLAZA 74,000 VPD 5 SMOKEY POINT BLVD 24,284 VPD 5 AAA Four Diamond award-winning 12-story hotel with 370 rooms and suites. The resort includes 192,000 square feet of gaming space, 7 restaurants, and is home to the T Spa, an on-site spa which features 14,000 square feet of treatment rooms. There are also meeting facilities, and the Canoes Cabaret, Orca Ballroom, and Tulalip Amphitheatre for entertainment events. Surrounding Retail

Area Developments VINTAGE APARTMENTS LODGE APARTMENTS THE MARKETPLACE AT SMOKEY POINT LAKEWOOD CROSSING 5

PAGE 13 New developments BRAND NEW AREA DEVELOPMENTS include the opening of Dick s Sporting Goods and Hobby Lobby at The Marketplace at Smokey Point. Additionally, the Lodge apartments and the Vintage apartments have opened adjacent to The Marketplace at Smokey Point bringing the total of newly developed multi-family units in the area to over 500. LODGE APARTMENTS 2203 172ND ST NE, MARYSVILLE, WA 98271 SMOKEY POINT BLVD SMOKEY POINT PLAZA VINTAGE APARTMENTS 17500 25TH AVE NE, MARYSVILLE, WA 98271 THE MARKETPLACE AT SMOKEY POINT 2323 172ND ST NE, MARYSVILLE, WA 98271 ANCHORS: DICK S SPORTING GOODS, HOBBY LOBBY, ULTA, PARTY CITY LAKEWOOD CROSSING 17101 27TH AVE NE, MARYSVILLE, WA 98271 ANCHORS: TARGET, BEST BUY, COSTCO, MARSHALLS Area Developments

Site Plan 172ND ST NE 30,250 VPD ±24,180 LEASEABLE SF 24,287 VPD SMOKEY POINT RD 2.05 ACRES ±106 SPACES; 4.38/1,000 SF

PAGE 15 6 7 8 9 1 2 3 4 5 10 11 12 13 1415 16 SITE PLAN NOT TO SCALE SITE PLAN KEY SUITE TENANT 1 Available 2 CK Nails & Spa 3 Tokyo House 4 ProGrow 5 J-Lee Floors 6 American Insurance 7 Smokey Point Bakery Cafe 8 Senses Spa 9 Smokey Point Cleaner SUITE TENANT 10 Sno-Isle Library 11 I-Doctor 12 Pho Dat Restaurant 13 Smokey Point Licensing 14 Hair Masters 15 Papa Murphy s 16 Baskin Robbins

Financial Summary PRICE $6,100,000 CAPITALIZATION RATE 7.20% PRICE PER FOOT $252 CASH FLOW SUMMARY SCHEDULED INCOME PER SF Base Rent for the Period of: 1/1/2019-12/31/2019 $18.55 $448,575 Rent Increases Over Base Rent $0.07 $1,661 Operating Expense Reimbursement $6.07 $146,780 Equals: Scheduled Gross Income $24.69 $597,016 Current Vacancy 8% Total Effective Gross Income (EGI) $24.69 $597,016 OPERATING EXPENSES Per SF CAMS $2.46 $59,578 Property Taxes $2.18 $52,633 Insurance $0.92 $22,343 Management Fee 3.5% of EGI $0.83 $20,082 Reserves $0.10 $2,418 Total Operating Expenses $6.50 $157,054 NET OPERATING INCOME $18.20 $439,962 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

PAGE 17 Rent roll TO ACCESS THE FULL FINANCIAL SUMMARY INCLUDING RENT ROLL, PLEASE EXECUTE THIS FORM. Financial Summary

Featured Photography

PAGE 19 Featured Photography

Questions & Answers

Q&A PAGE 21 Q: DO ANY TENANTS HAVE EXCLUSIVE USES, RESTRICTIONS, OR CO-TENANCY CLAUSES IN-PLACE? A: Yes. Tenants that have exclusive uses are listed as follows: J-LEE FLOORS: SMOKEY POINT BAKERY & CAFÉ: PAPA MURPHY S: Floor covering business Coffee shop and bakery Take and bake pizza There are no co-tenancy clauses, but Pho Dat Restaurant is restricted from offering menu items that compete directly with Tokyo House restaurant. Q: ARE THERE ANY CC&R S OR EASEMENTS/ENCROACHMENTS AFFECTING THE PROPERTY? A: According to the title report provided by First American Title Insurance, there are no adverse easements or encroachments affecting the Property. There are CC&R s in place affecting the larger shopping center which includes the Tractor Supply and incoming Habitat for Humanity immediately to the north. Each property owner within the larger shopping center is granted cross easements, ingress/egress, and reciprocal parking. Each owner has approval rights for additional pad developments on the Tractor Supply site, which allows an investor the ability to prevent further buildings without their permission. Questions & Answers

Location Snohomish County SNOHOMISH COUNTY has a total area of 2,087 square miles and is home to over 759,583 people, making it the third-most populous county in Washington. Several interstates connect Snohomish County to surrounding counties including: Interstate 5, Interstate 405, State Route 9, and State Route 99.

Industry PAGE 23 NORTHERN SNOHOMISH COUNTY IS THE MANUFACTURING CENTER OF WASHINGTON STATE. Twenty-five percent of the workforce is associated with manufacturing; twice the State average. The assembly of commercial aircraft is significant for the local economy, including both The Boeing Company and the associated supply chain. Southern Snohomish County has a concentration of knowledgeable workers and life science companies. T-Mobile has an engineering technology center with a staff of 600 and Google is planning to open a facility in Bothell that is designed to house 800 workers. Several medical device companies are located in Snohomish county including Philips Healthcare and Sonosite with a combined workforce of 3,000. Naval Station Everett NAVAL STATION EVERETT IS LOCATED NEXT TO THE MARINA IN THE CITY OF EVERETT, 25 miles north of Seattle. NAVSTA Everett is home to two Guided-Missile Destroyers with approximately 6,000 Sailors and Civil Service persons assigned to commands. The Naval Station itself has approximately 500 Sailors and Civilians assigned to other posts. Arlington ARLINGTON IS A BEDROOM COMMUNITY SITUATED IN THE STILLAGUAMISH RIVER VALLEY just north of Marysville. The area was settled in the late 1800 s and its early economy was largely dependent upon timber. Early settlers constructed sawmills, shingle mills and logging camps to take advantage of the heavily-wooded area. While the Arlington economy is still rooted in timber, recently Arlington has seen substantial population growth largely attributed to residents in search of affordable housing while working in Everett and Seattle. Developments One million square feet of industrial currently is in development at Gayteway Office Park nearby. The build-to-suit offerings are currently being marketed and has the potential to add thousands of jobs to the city of Arlington. FOR MORE INFO Location

Demographics KEY 5 MINS 10 MINS 15 MINS Distance to Everett, Washington Seattle, Washington 20 MILES 26 MINS 41 MILES 46 MINS

PAGE 25 Drive time POPULATION 5 MINS 10 MINS 15 MINS 2010 5,619 29,984 76,997 2017 6,406 33,891 84,188 2022 6,979 36,939 90,014 2017 HH INCOME 5 MINS 10 MINS 15 MINS Average $64,814 $81,524 $80,384 Median $54,002 $69,610 $65,730 772,501 SNOHOMISH COUNTY POPULATION (ESTIMATED) Demographics

We d love to hear from you. SEAN TUFTS stufts@capitalpacific.com PH: 206.693.3352 DAVID GELLNER dgellner@capitalpacific.com PH: 206.693.3349 The information in this Executive Summary has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. All rights reserved to Capital Pacific, LLC. Contact Us