QUEEN ANNE DUPLEX. $1,200,000 Offering Memorandum th Ave North Seattle, Washington INVESTMENT HIGHLIGHTS. Prime Queen Anne location

$1,200,000 Offering Memorandum QUEEN ANNE DUPLEX 2463 8th Ave North Seattle, Washington INVESTMENT HIGHLIGHTS Prime Queen Anne location Unobstructed, spacious, view units Central to South Lake Union, Fremont and Queen Anne Avenue work and play Upper unit has a luxurious 800 square foot view deck 3 bay garage parking Easy access to Dexter Avenue N bus line and bike paths Aaron Locke 206.774.5436 aaron@tfgre.com Gary McMann 206.919.4300 garymcmann@hotmail.com

For More Information Please Contact Aaron Locke 206.774.5436 aaron@tfgre.com 2621 Eastlake Ave E Seattle, WA 98102 www.tfgre.com Gary McMann 206.919.4300 garymcmann@hotmail.com The information included in this document has been obtained from sources we believe to be reliable. While we do not doubt its accuracy, we have not verified it and cannot make any guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions, or estimates used are for example only and may not accurately represent the current or future performance of the property. The value of any proposed transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. 1200 Westlake Ave N #406 Seattle, WA 98109 www.coldwellbanker.com 2 of 14

Contents Investment Overview Submarket Information Financial Summary Puget Sound Regional Information 3 of 14

SECTION 1 :: INVESTMENT OVERVIEW Investment Overview The Foundation Group & Coldwell Banker Bain Commercial are pleased to exclusively offer for sale the Queen Anne Duplex, located at 2463 8th Ave N. This two-unit building provides an opportunity to buy a well-built structure in a thriving neighborhood with expansive views. This great investment opportunity was built in two phases. The upper unit was built in 1921 and the lower unit, referred to as the Annex, was added in 1983. The duplex provides an investor the opportunity to enjoy sweeping Lake Union views, a spacious outdoor patio and three car garage parking. These are valuable amenities for an owner-occupy investor and great leasing features for tenants living in urban areas. The property consists of a large 2 bed, 1.5 bath unit and a very spacious 1 bed, 1 bath unit. A few of the amenities include: expansive views of Lake Union, over 800 sq ft large view deck, sunlight-filled units, in-unit washer/ dryer, fireplace and much more. The property has a large three bay garage for convenient off street parking that is currently being used at no additional cost. The 2463 8th Avenue N Duplex would be a perfect owner occupy property. This investment asset is positioned well to capitalize on the future rent growth of Queen Anne and the rapidly expanding tech hub of South Lake Union. With debt at historically low rates and a well maintained building, 2463 8th Ave N is an ideal candidate for investors looking for a long-term hold. The Mali Hus, a 6-unit apartment building on the west side of 2463 8th Ave, is being offered for sale by the same property owners. If a higher value 1031 exchange is needed or you would like to seize the opportunity to own both assets, an offer for the 6-unit 2462 Dexter Ave N property can be made as well. South Lake Union has become the bustling tech hub of Seattle. 4 of 14

SECTION 1 :: INVESTMENT OVERVIEW Quick Facts Price $1,200,000 Units 2 Rentable Sq.Ft. 2,550 2463 8TH AVE N Price Per Rentable Sq.Ft. $471 Current Cap Rate 3.77% Market Cap Rate 4.49% Current GRM 22.08 Market GRM 17.65 Parking 3 Garage Year Built 1921/1983 Land SF 3,850 Zoning Laundry Heating LR3 In unit Washer/Dryer Electric *Per king County Parcel Viewer 5 of 14

SECTION 2 :: SUBMARKET INFORMATION Queen Anne Area Description 2463 8th Avenue North is centrally located between three of Seattle s most iconic urban neighborhoods. The communities of Queen Anne, Fremont and South Lake Union are well established and an attractive place to live for those working around the Puget Sound area. Queen Anne is just less than 3 square miles yet has 25 parks which creates a little slice of serenity for its residents. It has many boutique shops, cafes and bakeries, as well as name brand stores such as Bartell Drugs, Trader Joes, and Safeway. Lower Queen Anne wraps around Seattle Center providing a hub for family and cultural activities. Its home to the Chihuly Garden and Glass, the Experience Music Project, the Children s Museum, and Seattle s big music festivals, Bumbershoot and Folklife. The Gates Foundation has its headquarters in Lower Queen Anne, right across the street from Seattle s iconic Space Needle. Bordering the east of Queen Anne, South Lake Union allows residents access to 170 acres of parks, community amenities, restaurants and nightlife as well as lakefront access and a myriad of alternative transit options. From retail to life sciences employers such as Allen Institute, NanoString and Fred Hutch, to tech giants Amazon and Facebook, both residents and business owners are drawn to the area because of its pedestrian-oriented infrastructure and modern approach to place-making. LAKE UNION PARK Source: seattlebloggers.com The urban village of Fremont, also playfully known as the Center of the Universe, borders Queen Anne to the north and is an artsy, waterside enclave. It is home to employers such as Google and Adobe. The Burke Gilman bike path, a 27-mile multi-use trail, easily connects riders from Dexter Avenue all the way to downtown Seattle. Live + Work + Play. AMAZON DOPPLER BUILDING Source: nbbj.com 6 of 14

SECTION 2 :: SUBMARKET INFORMATION 2463 8th Ave North Area Stats RETAIL 1 Trader Joe s 2 Bartell Drugs TRANSPORTATION SCORES 3 QFC 4 Safeway 5 5 Whole Foods Market RESTAURANTS 3 3 5 68 64 57 1 Canlis 2 How to Cook A Wolf 2 3 Revel 4 Brave Horse Tavern 1 2463 8TH AVE N 5 Portage Bay Cafe RECREATION 1 Lake Union Park 2 Gas Works 3 Burke Gilman Trail 4 The Electric Boat Company 2 4 1 4 EMPLOYERS 4 1 Amazon 1 2 Allen Institute 3 The Bill & Melinda Gates Foundation 4 Facebook 5 Google 3 3 2 2 5 4 1 5 7 of 14

SECTION 3 :: FINANCIAL SUMMARY Scheduled Income Unit # Unit Type Approx Sq Ft Current Rent Current / Sq Ft Market Rent Market / Sqft House 2 Bed / 1.5 Bath 1,560 $2,535 $1.63 $3,000 $1.92 Annex 1 Bed / 1 Bath 990 $1,935 $1.95 $2,200 $2.22 Total 2 2,550 $4,470 $1.75 $5,200 $2.04 Property Notes & Assumptions Prime Queen Anne location with views Washer/dryer & dishwashers in units Conveniently located on Dexter Avenue bus line and bike path to S. Lake Union, Downtown and Fremont Easier commute with shorter freeway access points as well as transportation options Garage parking Spacious sunlight filled apartment units Central to S. Lake Union, Fremont & Queen Anne Avenue lifestyle amenities Well maintained, two owner building with attention to landlord stewardship 8 of 14

SECTION 3 :: FINANCIAL SUMMARY Financials Current Market Effective Gross Rent $54,360 $62,400 Other Income Parking $0 $3,600 Utility Income $720 $1,980 Total Other Income $720 $5,580 Effective Gross Income $55,080 $67,980 Expenses Property Taxes (2016) $6,815 $11,097 Insurance $1,024 $1,024 Utilities W/S/G/E $1,986 $1,986 Total Expenses $9,825 $4,913 $14,107 $7,054 Net Operating Income $45,255 $53,873 9 of 14

SECTION 3 :: FINANCIAL ANALYSIS & VALUATION Sales Comparables Property Address Location Units Price Sale Date Price / Unit Price / Sq ft Cap Rate GRM 2463 8th Ave N Queen Anne 2 $1,200,000 TBD $600,000 $470 3.77% 22.1 1 2 3 4 2538 Dexter Ave N Queen Anne 2 $1,150,000 1/27/2017 $575,000 $373 3.17% 23.9 2111 5th Ave N Queen Anne 2 $1,425,000 12/10/2016 $712,500 $475 5.01% 14.9 1820 6th Ave W Queen Anne 2 $995,000 Pending $497,500 $452 4.90% 15.5 2704 4th Ave N Queen Anne 3 $1,100,000 3/1/2017 $366,667 $445 3.48% 21.3 Averages $537,916 $436 4.14% 18.9 2538 Dexter Ave N 2117 5th Ave N 1820 6th Ave W 2704 4th Ave N 1 2 3 4 10 of 14

SECTION 3 :: FINANCIAL ANALYSIS & VALUATION Sales Comparables 2704 4TH AVE N 4 2538 DEXTER AVE N 1 2463 8TH AVE N R 2 2111 5TH AVE N 1820 6TH AVE W 3 11 of 14

SECTION 4 :: SEATTLE / PUGET SOUND REGION Seattle / Puget Sound Seattle is the largest city in the state of Washington with an estimated population of 686,800 as of 2016. The Seattle metropolitan area, also known as the Puget Sound, is comprised of King, Pierce and Snohomish County. As an MSA, the Puget Sound is the 15th largest metropolitan area in the United States with a population of approximately 3.7 million people. Seattle has a thriving local economy and is home to eight Fortune 500 companies including Costco, Microsoft, Amazon, Paccar, Starbucks, Nordstrom, Expeditors International and Weyerhauser. In addition, Seattle is home to other notable tech companies such as Expedia, Zillow, Tableau and Zulily. It is quickly establishing itself as a national tech hub as multiple companies from Silicon Valley, such as Google and Facebook, have opened Seattle offices in an attempt to draw on the talented pool of tech workers living in and rapidly moving to Seattle. In 2016, Zillow ranked Seattle as the second hottest housing market in the nation for appreciation. Similarly in June of 2016, Redfin also ranked Seattle as the second hottest housing market behind Denver, where the average days on market of a listing is eight and median sales price growth year over year is 7.5%. Much of this growth comes from the hot job market in Seattle, ranked as the fourth best in the nation. A statistical analysis by Careerbuilder found that in 2015 Seattle added 78,082 jobs. Recently Conway Pederson forecasts they expect the Puget Sound region to add 47,900 jobs in 2016. Currently, the year to date in-migration to the Puget Sound based on driver s license data for January through May shows 49,656 people have moved into the area. On an annual basis, the 12-month moving average of monthly in migration is approximately 10,000 people. Annually that puts more than 120,000 people moving into the Puget Sound region; though this does not account for people moving out of the region, the bottom line is the area has and will continue to grow at a rapid pace making the rental market as strong as its ever been. 12 of 14

SECTION 4 :: PUGET SOUND REGION Buoyed by its technology sector and the metro s appeal as a live-work-play environment, Seattle s economy and multifamily market continue to break new ground. 13 of 14