QUEEN ANNE 6 UNIT. $2,150,000 Offering Memorandum Dexter Ave N Seattle, Washington INVESTMENT HIGHLIGHTS. Prime Queen Anne location

$2,150,000 Offering Memorandum QUEEN ANNE 6 UNIT 2462 Dexter Ave N Seattle, Washington INVESTMENT HIGHLIGHTS Prime Queen Anne location Highly desired tenant features Central to S. Lake Union, Fremont and QA Avenue work and play Remodeled penthouse unit with Lake Union view Great owner occupy investment 3 Garage + 5 off-street parking spaces Conveniently located on Dexter Ave N bus line & bike path Spacious, sunlight-filled units 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 and Coldwell Banker Bain are pleased to exclusively offer for sale the Mali Hus Apartments, a 6 unit apartment building located on Dexter Ave North. The property provides an opportunity to buy a unique well-built structure in a thriving neighborhood with an updated penthouse unit. This great investment opportunity was built in 1976. In early 2015 the penthouse unit was extensively remodeled into a luxurious urban oasis and includes its own private elevator accessed from the garage. This is a solidly constructed building with gypcrete sub floor and cast iron plumbing which eliminates loud neighbors. The penthouse and the two units below enjoy views of South Lake Union as well as downtown Seattle. There are many small details that prove the property has been meticulously maintained throughout the current ownership. The property consists of six units - one large 2 bed, 2 bath + den, and five spacious 1 bed, 1 bath units. Some of the amenities include: balconies, in-unit washer/dryer, dual entrances, wet bars, fireplaces and a secured access entryway. The property has a three car garage plus five off street parking spaces. The Mali Hus would be a perfect owner-occupied property for someone looking for condo living without the headaches of an HOA. The current owners have done an impeccable job creating modern, balanced and functional units throughout the property. This investment asset is positioned well to capitalize on future rent growth of the Queen Anne area and the quickly expanding tech hub of South Lake Union. With debt at historically low rates and a well maintained building, 2262-2264 Dexter, the Mali Hus is an ideal candidate for investors looking for a long-term hold. 2463 8th Ave N, a Duplex on the lake side of 2262 Dexter is being offered for sale by these property owners as well. If a higher value 1031 exchange is needed or you would like to seize the opportunity to own both assets, the 2463 8th Duplex can be considered. South Lake Union has become the bustling tech hub of Seattle. 4 of 14

SECTION 1 :: INVESTMENT OVERVIEW Quick Facts Price $2,150,000 Units 6 Rentable Sq.Ft. 5,194 2462 DEXTER AVENUE N Price Per Rentable Sq.Ft. $414 Current Cap Rate 5.00% Market Cap Rate 5.34% Price Per Unit $358,333 Current GRM 14.92 Market GRM 13.62 Parking 3 Garage + 5 Off Street Spaces Year Built 1976 Land SF 4,050 Zoning Laundry Heating Construction Type Loan Type LR3 In unit Washer/Dryer Electric Wood Frame 5 Year Fixed Loan Amount $1,375,000 Down Payment % 36% Interest Rate 3.97% *Per king County Parcel Viewer 5 of 14

SECTION 2 :: SUBMARKET INFORMATION Queen Anne Area Description The Mali Hus (pronounced house ) 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 2462 Dexter Ave N 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 2462 DEXTER 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 1P 2 Bed / 2 Bath + Den 1525 $3,800 $2.49 $3,800 $2.49 2N 1 Bed / 1 Bath 749 $1,650 $2.20 $1,750 $2.34 3S 1 Bed / 1 Bath 749 $1,650 $2.20 $1,750 $2.34 4E 1 Bed / 1 Bath 723 $1,445 $2.00 $1,650 $2.28 5W 1 Bed / 1 Bath 724 $1,550 $2.14 $1,650 $2.28 6B 1 Bed / 1 Bath 724 $1,350 $1.86 $1,495 $2.06 Total 6 5,194 $11,445 $2.20 $12,095 $2.33 Property Notes & Assumptions Prime Queen Anne Location with Views Beautifully renovated & spacious Penthouse Unit with view decks & private elevator Washer/Dryer & Dishwashers in Units Two Secured Entrances limit noise frequency during entry/exit from building Conveniently Located on Dexter Avenue Bus Line & Bike Path to S. Lake Union, Downtown and Fremont Easier commute with shorter freeway access points as well as transportation options 3 Garage & 5 Additional Off Street Parking Spaces Spacious Sunlight Filled Apartment Units Central to S. Lake Union, Fremont & Queen Anne Ave lifestyle amenities Well maintained 2 owner building with an attention toward landlord stewardship 8 of 14

SECTION 3 :: FINANCIAL SUMMARY Financials Current Market Gross Potential Rent $137,340 $145,140 Vacancy $4,120 3% $4,354 3% Effective Gross Rent $133,200 $140,786 Other Income Parking $0 $4,800 Utility Income $6,600 $7,920 Total Other Income $6,600 $12,720 Effective Gross Income $139,820 $153,506 Expenses Property Taxes (2016) $14,306 $20,394 Insurance $2,152 $2,152 Utilities W/S/G/E $7,644 $7,644 Maintenance & Repairs $3,235 $3,235 Resident Manager (Proforma) $3,240 $3,240 Reserves $1,500 $1,500 Miscellaneous $274 $274 Total Expenses $32,410 $5,402 $38,498 $6,416 Net Operating Income $107,410 $115,008 Less Loan Payments $78,488 $78,488 Pre-Tax Cash Flow $28,922 3.73% $36,520 4.71% Principle Reduction $18,164 $18,164 Total Pre Tax Return $47,086 6.08% $54,684 7.06% 9 of 14

SECTION 3 :: FINANCIAL ANALYSIS & VALUATION Sales Comparables / Location Property Address Location Units Price Sale Date Price / Unit Price / Sq ft Cap Rate GRM 2462 Dexter Ave N Queen Anne 6 $2,150,000 TBD $358,333 $414 5.0% 14.92 1 2 3 4 215 W Boston St Queen Anne 6 $2,100,000 2/24/2017 $350,000 $437 3.9% 17.5 2117 Dexter Ave N Queen Anne 6 $2,050,000 2/22/2017 $341,666 $412 4.4% 16.3 2107 5th Ave N Queen Anne 6 $2,975,000 12/9/2016 $495,000 $448 4.8% 14.7 100 Florentia St Queen Anne 6 $1810,000 9/26/2016 $301,666 $414 3.5% 19.3 Averages $372,083 $428 4.15% 17.0 215 W Boston St 2117 Dexter Ave N 2107 5th Ave N 100 Florentia St 1 2 3 4 10 of 14

SECTION 3 :: FINANCIAL ANALYSIS & VALUATION Sales Comparables 100 FLORENTIA ST 4 2462 DEXTER AVENUE N R 2107 5TH AVE N 1 2 3 215 W BOSTON ST 2117 DEXTER AVE N 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