FAIRMONT VILLA 34 Units Portland, Oregon OFFERING MEMORANDUM

FAIRMONT VILLA 34 Units Portland, Oregon OFFERING MEMORANDUM

INVESTMENT SUMMARY ASSET SUMMARY Property Location County Total Units 34 Year Built 1961 Stories Fairmont Villa 10445 NE Weidler Street Portland, Oregon 97220 Multnomah Approx. NR Sq Ft 37,680 Average Sq Ft 1,108 Acreage 1.60 1 and 2 stories 23.5% 3 Bedrooms 23.5% 1 Bedrooms 53.0% 2 Bedrooms PROPERTY HIGHLIGHTS Balanced unit mix Well-maintained property Strong Mall 205 location Low density, garden court Off-street parking and garages Newer exterior envelope Pool and green space Enclosed, private patios PRICING Price $4,950,000 Price Per Unit $145,588 Per Square Foot $131 Cap Rate 5.44% FOR MORE INFORMATION Greg Frick greg@hfore.com Cody Hagerman cody@hfore.com Rob Marton rob@hfore.com HFO Investment Real Estate 2424 SE 11th Avenue, Portland, Oregon 97214 www.hfore.com (503) 241.5541 Fax: (503) 241.5548 Brokers licensed in Oregon and Washington. 2 HFO INVESTMENT REAL ESTATE

FAIRMONT VILLA 34 UNITS PORTLAND, OR 3

LOCATION Rose City Golf Course NE 82nd Ave Rocky Butte Park 205 84 NE Weidler St Fairmont Villa NE Halsey St Gateway Shopping Center & Transit Station Montavilla Park Multnomah University NE 99th Ave NE 102nd Ave NE Glisan St E Burnside St NE 122nd Ave LIFESTYLE CONVENIENCES Fairmont Villa is conveniently located near the intersection of Interstates 84 and 205. These transportation corridors connect northeast Portland to the greater metro area and to Vancouver, Washington. Employment centers found in Portland, Gresham and Vancouver are easily accessed via the interstates or the MAX light rail found at the Gateway Transit center just 1.3 miles away. GATEWAY SHOPPING AND TRANSIT CENTER The Gateway Shopping Center is less than 1.5 miles away and features numerous lifestyle conveniences: Fred Meyer Kohl s WinCo Foods Office Depot Ross Dress for Less Applebee s Grill & Bar Providence Medical Group The Oregon Clinic Gateway Medical Pharmacy 4 HFO INVESTMENT REAL ESTATE

PORTLAND METRO SNAPSHOT PORTLAND REGION Oregon s largest city, Portland, is near the confluence of the Willamette and Columbia Rivers. The Portland Metro Area consists of four counties: Multnomah, Washington, Clackamas, and Clark County, Washington. APARTMENT MARKET The Portland Metro Area consistently ranks among the nation s lowest for apartment vacancy rates according to the U.S. Census Bureau and other third-party services like REIS, MPF Research, and Axiometrics. The U.S. Census ranked Portland as having the 6th lowest vacancy rate in the nation for the first quarter of 2018 at 3.6%. REIS reports 2017 Portland metro year-over-year rents grew 3.3%. Overall rents have increased every quarter since Q1 2010. SKILLED WORKFORCE & STRONG EMPLOYMENT 54% of Portland workers have an associate s degree or higher, outpacing the national average of 38%. According to the State of Oregon s Employment Department, Portland enjoys one of the fastest job growth rates in the Pacific Northwest, and the entire nation, having added 31,000 jobs in 2016 and 28,000 jobs in 2017. The Portland Metro Area s unemployment rate as of May 2018 is 3.7% the lowest since 1995. DIVERSIFIED ECONOMY Portland is home to the headquarters of Fortune 500 companies Nike, Precision Castparts and Lithia Motors. Fortune 1000 companies headquartered here include Stancorp Financial, Greenbrier Companies, Columbia Sportswear, Schnitzer Steel Industries, and Portland General Electric. Tech and software companies continue to relocate their operations here or open major outposts in Portland. These companies enjoy Portland s educated workforce, affordable high quality of life, and a low cost of doing business compared to the Bay Area. Companies which recently opened major branches in Portland include Airbnb, Google, Squarespace, Mozilla, Simple, Survey Monkey, SalesForce and New Relic, Inc. Portland s tech startup companies include Viewpoint, Jama Software, Thetus, Urban Airship, Acquia, Elemental Technologies, Act-On, Puppet Labs, and The Clymb. TOP 10 LISTS Portland consistently receives glowing reviews and rankings from the media. 2018 lists include: #4 Best City for Biking (Fast Company) #6 Best Place to Live (U.S. News and World Report) #10 Most Entrepreneurial State (Amazon.com) 2017 lists include: #3 City with Best Opportunities for Job Seekers This Year (Fast Company) 2016 lists include: America s Best City for Summer Travel (Travel + Leisure) Best City for Electric Cars in the U.S. (The Christian Science Monitor) Best Places to Live 2016 (Money Magazine) #8 Greenest City in the Nation (Wallethub) #8, World s Best Cities for Millennials (Matador Network) Food and Drink Capital of America (The Telegraph London) World s #10 Best City to Live In (Metropolis Magazine) FAIRMONT VILLA 34 UNITS PORTLAND, OR 5

OPERATIONS ANALYSIS FAIRMONT VILLA 34 UNITS PORTLAND, OREGON Income Current Scheduled Rents Projected Operations Scheduled Gross Rent $446,988 $13,147 $453,624 $13,342 Less: Vacancy/Credit Loss ($22,349) ($657) -5.0% -$22,681 -$667-5.0% Net Rental Income $424,639 $12,489 $430,943 $12,675 Other Income $34,330 $1,010 $34,330 $1,010 Includes: Garage Income $1,911 $56 $1,911 $56 Includes: Utility Billing (RUBs) $25,561 $752 53.7% $25,561 $752 53.7% Includes: Miscellaneous $6,858 $202 $6,858 $202 Gross Operating Income $458,968 $13,499 $465,272 $13,684 Expenses Projected Operations Per Unit % GOI Projected Operations Per Unit % GOI Real Estate Taxes $43,800 $1,288 9.5% $43,800 $1,288 9.4% Insurance $8,747 $257 1.9% $8,747 $257 1.9% Total Utilities $51,725 $1,521 11.3% $51,725 $1,521 11.1% Fee Management $36,717 $1,080 8.0% $37,222 $1,095 8.0% Landscaping $11,592 $341 2.5% $11,592 $341 2.5% Maintenance/Repairs $22,100 $650 4.8% $22,100 $650 4.7% Turnover $6,630 $195 1.4% $6,630 $195 1.4% Reserves $8,500 $250 1.9% $8,500 $250 1.8% Total Expenses ($189,812) ($190,316) Expenses per Unit ($5,583) ($5,598) % of Gross Operating Income 41% 41% Net Operating Income (NOI) $269,156 $274,956 6 HFO INVESTMENT REAL ESTATE

OPERATIONS ANALYSIS FAIRMONT VILLA 34 UNITS PORTLAND, OREGON Unit Type Unit Count Square Feet RENT ROLL ANALYSIS: SCHEDULED RENTS Lowest Achieved Rent Highest Achieved Rent % Diff Average Scheduled Rent Average Scheduled Rent PSF 1 Bedroom / 1 Bathroom 8 713 $880 $990 12.5% $953 $1.34 2 Bedroom / 1.5 Bathroom 4 930 $1,115 $1,195 7.2% $1,143 $1.23 2 Bedroom / 1 Bathroom 14 1,104 $969 $1,130 16.6% $1,062 $0.96 3 Bedroom / 1.5 Bathroom 8 1,600 $1,200 $1,300 8.3% $1,274 $0.80 Totals / Averages 34 1,108 $1,041 $1,154 11.2% $1,096 $0.99 Unit Type Unit Count Square Feet RENT ROLL ANALYSIS: PROJECTED RENTS Average Scheduled Rents Average Scheduled Rents per Sq Ft Average Market Rent Average Market Rent per Sq Ft % Change 1 Bedroom / 1 Bathroom 8 713 $953 $1.34 $990 $1.39 3.8% 2 Bedroom / 1.5 Bathroom 4 930 $1,143 $1.23 $1,143 $1.23 0.0% 2 Bedroom / 1 Bathroom 14 1,104 $1,062 $0.96 $1,065 $0.96 0.3% 3 Bedroom / 1.5 Bathroom 8 1,600 $1,274 $0.80 $1,300 $0.81 2.0% Totals / Averages 34 1,108 $1,096 $0.99 $1,112 $1.00 1.5% FAIRMONT VILLA 34 UNITS PORTLAND, OR 7

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FAIRMONT VILLA 34 UNITS PORTLAND, OREGON ASSET SUMMARY Property Location County Total Units 34 Year Built 1961 Average Sq Ft 1,108 Fairmont Villa 10445 NE Weidler Street Portland, Oregon 97220 Multnomah PRICING Price $4,950,000 Price Per Unit $145,588 Per Square Foot $131 Cap Rate 5.44% TOURS AND INQUIRIES Please do not disturb tenants. All tours and inquiries regarding Fairmont Villa are to be directed to HFO Investment Real Estate at (503) 241.5541. Greg Frick greg@hfore.com Cody Hagerman cody@hfore.com Rob Marton @hfore.com Jack Stephens jack@hfore.com Tyson Cross tyson@hfore.com Lee Fehrenbacher lee@hfore.com Todd Tully todd@hfore.com Adam Smith adam@hfore.com Brokers licensed in Oregon and Washington. FAIRMONT VILLA 34 UNITS PORTLAND, OR 9

HFO Investment Real Estate Passion Collaboration Specialization 2424 SE 11th Avenue Portland, OR 97214 www.hfore.com 503.241.5541 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Parties who receive this information from unauthorized parties shall not be recognized. 2018 HFO Investment Real Estate LLC. Build your legacy is a service mark of HFO Investment Real Estate. Licensed in the states of Oregon and Washington.