PAUL SLEETH Executive Managing Director /

22511 HIGHWAY 99 S. EDMONDS WA 98020 PAUL SLEETH Executive Managing Director 206.518.9547 / paul.sleeth@ngkf.com BILLY SLEETH Executive Managing Director 206.518.9567 / billy.sleeth@ngkf.com PATRICK ALLEN Retail Investments 206.858.8434 / patrick.allen@ngkf.com

Edmonds Center is a grocery and drug anchored investment opportunity with significant future rental and/or development upside. The institutional quality offering is truly a covered land play consisting of 9 acres just 8 miles north of Seattle. The offering benefits from 100% occupancy, near term contracted rental increases, and ease of management with only four tenants - 99 Ranch Market, Rite Aid, Big Foot Java coffee pad and a Wells Fargo ATM pad. Due to the below market rents the center will trade well below land value and replacement cost providing a rare opportunity to acquire a stabilized grocery anchored center with future upside in the greater Seattle metro area. HIGHLIGHTS Excellent Location The asset benefits from a regional location 8 miles north of Seattle between the high-income residential neighborhoods of Esperance and Mountlake Terrace in the city of Edmonds. Grocery & Drug Anchored The grocery/drug component provide draw and stability to the offering. 99 Ranch Market and Rite Aid are 91% of the income stream. Significantly Below Market Rents 99 Ranch Market pays $7.45/SF/YR and Rite Aid pays $7.99/SF/YR providing significant rental upside and producing a low price/sf. Future Redevelopment Opportunity The property contains attractive and flexible zoning allowing for dense commercial, residential, or mixed-use development with heights up to 75 feet. Near-term NOI growth The cap rate increases approximately 50 basis points in the initial five years. All leases contain contracted rental increases providing steady NOI growth. 99 Ranch Market Owned by Tawa Supermarkets, 99 Ranch Market operates 43 grocery stores across the country and is one of the dominant Asian focused grocers in the country. Solid Demographics Over 258,000 people and average incomes over $95,000 within a fivemile radius. Access and Visibility Edmonds Center contains excellent access and visibility with over 725 feet of frontage on Highway 99 and traffic counts in excess of 43,000 ADT. The property is less than 1 mile from two major I-5 interchanges. Sound Transit Light Rail A new light rail station 1.25 miles south east of the Edmonds Center is planned for 2023, which will help drive rents, development, density and population growth to the trade area. Ease of Management With two anchors, two free-standing pads, and net leases the offering provides minimal management responsibilities. Strong Historical Occupancy The property is 100% leased and boasts strong historical tenancy; 99 Ranch Market and Rite Aid have been at the center for 16 years, while Bigfoot Java has been operating here for 13 years. No Debt The property is offered free and clear of debt allowing an investor to take advantage of a new 2 loan.

REDEVELOPMENT POTENTIAL UNIQUELY POSITIONED FOR MAXIMUM RETURNS REDEVELOPMENT Edmonds Center presents a rare opportunity to redevelop nearly 9 acres of land in the Puget Sound region, just 8 miles north of downtown Seattle. The city of Edmonds and the property zoning code provide near full autonomy and flexibility of development. ATTRACTIVE, FLEXIBLE ZONING ALLOWS FOR: New building height of up to 75 feet Above ground parking garages (subterranean parking not required) No FAR restrictions DEVELOPER FRIENDLY MULTI-FAMILY TAX EXEMPTION The city of Edmonds has one of the most attractive Multi- Family Tax Exemption plans in Washington state, driving density. Developers who build at least 20% of the project for low-income housing are eligible to receive a 12-year property tax exemption. Due to high incomes in Edmonds and the surrounding region, the affordable housing levels and corresponding MFTE is extremely advantageous for developers. 3

1.25 miles between the sites FUTURE LIGHT RAIL STATION Improved Access and Transportation The Lynnwood Link Extension will directly connect Edmonds with downtown Seattle and Bellevue. The project is on track to begin construction in 2018 and open by 2023. The Mountlake Terrace station will be located approximately 1.25 miles south of Edmonds Center. EDMONDS Source: Sound Transit 4

22511 HIGHWAY 99 S. EDMONDS WA 98020 TERMS OF THE OFFERING Asking Price Best Offer NOI $800,084 Building Area 99,588 SF Land Area 8.93 acres Financing Free and Clear Address 22511 Highway 99 S, Edmonds, WA 98020 Year Built 1967 Parcel Number 27042900307400 Zoning General Commercial, allowing for mixed use up to 75 feet high.

SITE AERIAL ATM 6

SITE P L A N Rite Aid Drive-Thru 8 TENANT ATM SQUARE FEET 99 Ranch Market 77,000 Rite Aid 22,200 Big Foot Java 388 Wells Fargo n/a TOTAL 99,588 Ranch 99 occupies 77,000 sf and subleases a portion of their space to multiple shop tenants.

RE TAIL AERIAL IC H 76 TH AVE 100 TH AVE 9 BAO HAN ORIENTAL MARKET PA CIF 84TH AVE 228 TH ST WY 220 TH ST NE W M A RK KNI G H T F R A NK

DEMOGRAPHICS Population 1 mile 3 miles 5 miles 2000 Population 14,322 124,153 228,860 2010 Population 14,465 124,859 238,542 2017 Population 15,243 132,974 258,804 2022 Population 15,994 140,200 274,814 2000-2010 Annual Rate 0.10% 0.06% 0.42% 2010-2017 Annual Rate 0.73% 0.87% 1.13% 2017-2022 Annual Rate 0.97% 1.06% 1.21% 2017 Male Population 48.6% 48.4% 48.8% 2017 Female Population 51.4% 51.6% 51.2% 2017 Median Age 41.2 42.9 41.6 Median Household Income 2017 Median Household Income $59,298 $69,913 $72,501 2022 Median Household Income $68,409 $78,813 $80,440 2017-2022 Annual Rate 2.90% 2.43% 2.10% Average Household Income 2017 Average Household Income $77,715 $94,205 $95,580 2022 Average Household Income $89,240 $105,800 $107,413 2017-2022 Annual Rate 2.80% 2.35% 2.36% Per Capita Income 2017 Per Capita Income $34,150 $39,325 $39,118 2022 Per Capita Income $39,073 $43,996 $43,765 2017-2022 Annual Rate 2.73% 2.27% 2.27% 10