Smokey Point Plaza ARLINGTON, WASHINGTON

SHOPPING CENTER WITH STRONG RENT GROWTH IN PREMIER RETAIL DESTINATION

Overview Smokey Point Plaza 3405 172ND ST NE, ARLINGTON, WA 98223

PAGE 5 Investment Summary LEASEABLE SF ±24,794 SF LAND AREA ±92,347 SF PRICE PER SF $212 AVG CURRENT RENTS $16.58/SF YEAR BUILT/REMODELED 1985/2009 OCCUPANCY 100% PRICE $5,250,000 IN-PLACE CAP 7.35% THE OFFERING provides an opportunity to acquire a fully occupied retail center with significant rent growth in a dynamic retail area off of Interstate 5. The growing trade area has seen major commercial and residential development in recent years, establishing itself as a regional retail destination. Located just off the Interstate along 172nd Street NE, the shopping center is anchored by a corporate Taco Time with a 25-year occupancy history and recognizes high daily traffic counts exceeding 34,000 VPD. Overview

Investment Highlights The highlights LOCATED JUST OFF INTERSTATE 5 IN A RETAIL DESTINATION AREA AMONG COSTCO, TARGET, WALMART AND SEVERAL OTHER NATIONAL RETAILERS. 100% OF IN-PLACE TENANTS EXHIBIT SIGNIFICANT SCHEDULED RENT GROWTH. CORPORATE TACO TIME WITH A NEARLY 25-YEAR TENURE AT THE PROPERTY. SIGNIFICANT LEASING ACTIVITY SINCE 2016 SPEAKS TO DEMAND AND STRENGTH OF THE SMOKEY POINT TRADE AREA. NO TENANT EXPIRATIONS UNTIL 2020 MINIMIZING NEAR-TERM LEASE EXPOSURE.

PAGE 7 ONE-HALF BLOCK FROM INTERSTATE 5 ACCESS POINT MAJOR RESIDENTIAL GROWTH NEARBY HIGHLIGHTED BY MORE THAN 500 MULTI-FAMILY UNITS RECENTLY CONSTRUCTED ACROSS THE FREEWAY FROM THE PROPERTY. CLOSE PROXIMITY TO TULALIP RESORT AND CASINO AND THE SEATTLE PREMIUM OUTLETS, WHICH HELP CREATE A FAR REACHING REGIONAL DRAW. ALONG THE HIGHLY-TRAFFICKED ARTERIAL 172ND STREET, RECOGNIZING MORE THAN 34,000 VEHICLES PER DAY. Investment Highlights

Tenants Lease Tenancy Breakdown 44% OF TENANTS HAVE OCCUPIED SPACE AT PROPERTY LONGER THAN 10 YEARS. 26% 18% 35% 21% 20+ YEARS 10+ YEARS 2+ YEARS <2 YEARS

PAGE 9 About Taco Time 70+ LOCATIONS THROUGHOUT WA Taco Time NW (Accord Inc. - Corporate) 24 YEAR TENURE IN THIS LOCATION 8 YEARS REMAINING Tenants

Surrounding Retail Business summary TOTAL 1-MILE 3-MILES 5-MILES Businesses 411 1,135 2,160 Employees 4,397 13,762 27,496 Population 7,189 26,434 58,434 KEY 1-MILE 3-MILES 5-MILES MAJOR RETAIL Best Buy Costco Fred Meyer Goodwill Grocery Outlet Home Depot JoAnn Fabrics SMOKEY POINT MARKETPLACE 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

SMOKEY POINT MARKETPLACE SMOKEY POINT PLAZA 39,000 VPD PAGE 11 531 531 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 onsite 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 Rents Positioned for Rent Upside SMOKEY POINT PLAZA HAS AVERAGE RENTS NEAR $17 PER SQUARE FOOT, providing further income growth for an investor. In the short term, the lower cost of tenancy within Smokey Point Plaza allows the Property to maintain higher occupancy levels and attract a wide variety of tenants. Average Rent Per SQF UNDER $20/SF SMOKEYPOINT SHOPPING CENTER SMOKEY POINT COURT $20/SF - $25/SF GATEWAY CENTER $25/SF - $30/SF LAKEWOOD CROSSING $30/SF - $35/SF SMOKEY POINT MARKETPLACE LAKEWOOD POINTE PADS

PAGE 13 SMOKEY POINT MARKETPLACE LAKEWOOD POINTE PADS SMOKEY POINT SHOPPING CENTER SMOKEY POINT PLAZA SMOKEY POINT RETAIL CENTER LAKEWOOD CROSSING 5 SMOKEY POINT COURT SMOKEY POINT BLVD 531 GATEWAY CENTER WALMART PAD Area Rents

Area Development VINTAGE APARTMENTS LODGE APARTMENTS SMOKEY POINT MARKETPLACE LAKEWOOD CROSSING 5

PAGE 15 New developments SMOKEY POINT PLAZA BRAND NEW AREA DEVELOPMENTS include the opening of Dick s Sporting Goods and Hobby Lobby at Smokey Point Marketplace. Additionally, the Lodge apartments and the Vintage apartments have opened adjacent to Smokey Point Marketplace 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 VINTAGE APARTMENTS 17500 25TH AVE NE, MARYSVILLE, WA 98271 SMOKEY POINT MARKET PLACE 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 Development

Site Plan 14,750 VPD ±24,794 LEASEABLE SF SMOKEY POINT BLVD 2.12 ACRES 172ND ST NE 39,000 VPD ±106 SPACES; 4.38/1,000 SF

PAGE 17 WORK-N-MORE BIG FOOT MUSIC #1 TERIYAKI BELLA BOUTIQUE SKY VAPOR LLC MUGU GAMES FOREVER SPRING SPA SAFETY EDUCATORS, INC. VACCUUM & SEWING HI-TEK NAILS MAILBOX DEPOT SMOKIN 67 DRIVE THRU SITE PLAN NOT TO SCALE PYLON SIGN Site Plan

Financial Summary PRICE $5,250,000 CAPITALIZATION RATE 7.35% CASH FLOW SUMMARY IN-PLACE SCHEDULED INCOME PER SF Base Rent for the Period of: 1/1/2019-12/31/2019 $16.60 $411,692 Rent Increases Over Base Rent $0.21 $5,252 Operating Expense Reimbursement $4.27 $105,991 Equals: Scheduled Gross Income $21.09 $522,935 Market Vacancy 5% ($1.05) ($26,147) Total Effective Gross Income (EGI) $20.04 $496,788 OPERATING EXPENSES PER SF CAMS $1.79 $44,308 Property Taxes $1.65 $40,873 Insurance $0.13 $3,299 Management Fee 4.0% of EGI $0.81 $20,055 Reserves $0.10 $2,479 Total Operating Expenses $4.48 $111,014 NET OPERATING INCOME $15.56 $385,774 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 19 Rent roll TO ACCESS THE FULL FINANCIAL SUMMARY INCLUDING RENT ROLL, PLEASE EXECUTE THIS FORM. Financial Summary

Construction

PAGE 21 Recent Property Updates SIGNAGE: FENCING: PARKING: HVAC: LIGHTING: SECURITY: Monument sign was recently cleaned and updated with rock base. Rear of building is fully fenced with two locked gates to enclose the Property. Parking lot has been cleaned, striped, and sealed, and landscaping has been improved. Replaced multiple HVAC Systems. All exterior lighting has been updated to LEDs and numerous lighting packs have been added to the exterior. Added security cameras to the front and back of the building. Construction

Featured Photography

PAGE 23 Featured Photography

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 25 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 27 Drive time POPULATION 5 MINS 10 MINS 15 MINS 2010 6,404 34,387 92,604 2017 7,257 38,677 100,854 2022 7,905 42,032 107,677 2017 HH INCOME 5 MINS 10 MINS 15 MINS Average $64,998 $81,545 $79,152 Median $54,348 $69,067 $64,040 772,501 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