[ SEATTLE MULTI-FAMILY PROPERTY FOR SALE ]

RAY WEST 206.818.2689 ray@agmrealestate.com TROY GESSEL 425.576.8747 troy@agmrealestate.com [ SEATTLE MULTI-FAMILY PROPERTY FOR SALE ] Value-Add Opportunity Opportunity for Renovation New Development Potential Hot Pike/Pine Corridor Assemblage Potential 500 E Union 500 East Union Street, Seattle, WA 98122 AGM, INC. 2100 124th Avenue NE, Suite 100 Bellevue, WA 98005 425.576.8700 agmrealestate.com

EXECUTIVE SUMMARY PROPERTY OVERVIEW OFFERING SUMMARY Sale Price: Number Of Units: $3,450,000 17 Opportunity to acquire a spectacular location in Seattle s highly desirable Capitol Hill neighborhood. This is the first time that this location has been on the market in 60+ years. The property includes two structures with a total of 17 units. Seven of these units are set up as a rooming house and the other units are a mix of one and two bedroom units. The total building square footage is 10,020, Year Built: 1910 situated on a prime 5,000 square foot corner lot with views back over the Downtown skyline and Capitol Hill. With superior access to Downtown Seattle s central business district, this property Building Size: Zoning: Price / SF: 10,020 allows for several investment options including value-add, renovation, and new development. MR $344.31 CONFIDENTIAL OFFERING MEMORANDUM AGM, INC. 2

INVESTMENT SUMMARY Prime Pike/Pine location on Capitol Hill Opportunity as Value-Add / Renovation / or New Development Immediate rent upside Potential Reorganization of existing square footage within building envelope Redevelopment potential Current MR Zoning within Urban Village Corner Lot First time on market Adjacent Downtown Seattle CBD Walk score 98 Transit score 79 CONFIDENTIAL OFFERING MEMORANDUM AGM, INC. 3

PRO FORMA Market Rents/Existing SF APT Renovation/Existing SF UNIT # Lease Exp Type SF Current Rent Rent PSF Proforma Rent Rent PSF PF2 Rent Rent PSF A MTM 1/1.00 850 850.00 $ 1.00 $ 1,250.00 $ 1.47 $ 2,195.00 $ 2.58 B vacant 850 0.00 $ $ 1,250.00 $ 1.47 $ 2,195.00 $ 2.58 C 3/31/2019 2/1.00 1,100 1,750.00 $ 1.59 $ 1,850.00 $ 1.68 $ 2,750.00 $ 2.50 01 MTM 1/1.00 850 1,050.00 $ 1.24 $ 1,250.00 $ 1.47 $ 2,195.00 $ 2.58 02 3/30/2019 1/1.00 680 1,275.00 $ 1.88 $ 1,375.00 $ 2.02 $ 1,995.00 $ 2.93 03 11/10/2018 0/0.00 170 650.00 $ 3.82 $ 750.00 $ 4.41 $ 895.00 $ 5.26 04 MTM 0/0.00 170 525.00 $ 3.09 $ 750.00 $ 4.41 $ 895.00 $ 5.26 05 MTM 0/0.00 400 800.00 $ 2.00 $ 1,000.00 $ 2.50 $ 1,395.00 $ 3.49 06 MTM 0/0.00 170 625.00 $ 3.68 $ 750.00 $ 4.41 $ 895.00 $ 5.26 07 1/31/2019 0/0.00 170 675.00 $ 3.97 $ 750.00 $ 4.41 $ 895.00 $ 5.26 08 MTM 0/0.00 170 600.00 $ 3.53 $ 750.00 $ 4.41 $ 895.00 $ 5.26 09 MTM 0/0.00 170 550.00 $ 3.24 $ 750.00 $ 4.41 $ 895.00 $ 5.26 10 MTM 0/0.00 170 600.00 $ 3.53 $ 750.00 $ 4.41 $ 895.00 $ 5.26 11 2/25/2019 1/1.00 850 1,500.00 $ 1.76 $ 1,500.00 $ 1.76 $ 2,195.00 $ 2.58 12 7/31/2018 --/1.00 500 1,200.00 $ 2.40 $ 1,300.00 $ 2.60 $ 1,595.00 $ 3.19 1400 MTM 2/1.00 1,100 1,450.00 $ 1.32 $ 1,650.00 $ 1.50 $ 2,750.00 $ 2.50 1402 12/31/2018 1/1.00 850 1,250.00 $ 1.47 $ 1,250.00 $ 1.47 $ 2,195.00 $ 2.58 9,220 $ 15,350.00 $ 18,925.00 $ 27,725.00 Avg Apt PSF $ 1.66 $ 2.05 $ 3.01 Avg Build PSF $ 1.66 $ 2.05 $ 3.01 Income Annual Rental Income $ 184,200.00 $ 227,100.00 $ 332,700.00 Utility Income $ $ 2,500.00 $ 2,500.00 Total Annual Income $ 184,200.00 $ 229,600.00 $ 335,200.00 Gross Income (3% vac) $ 178,674.00 $ 222,712.00 $ 325,144.00 Expenses Total Expenses 99,050.58 $ 99,050.58 $ 113,908.17 EXP % 55% 44% 35% NOI $ 79,623.42 $ 123,661.42 $ 211,235.83 CONFIDENTIAL OFFERING MEMORANDUM AGM, INC. 4

AERIAL MAP CONFIDENTIAL OFFERING MEMORANDUM AGM, INC. 5

PROPERTY BLOCK SNAPSHOT 1406 SUMMIT MR Zoning 5,000 SF Assemblage Potential THE SANTA FE Sold 4/2018 for $3.1 mm 8,600 GSF / 11 Units $354/SF MR Zoning 5,000 SF $615/SF COVE APARTMENTS Recent New Development Sold 5/2018 for $32 mm BLANCHE CLARE MR ZONING 5,362 SF Sold 5/2018 for $2.35 mm Discount sale to school BOYLSTON FLATS Recent New Development Micro MR Zoning 11,124 SF 76 Units GSF 44,000 500 E UNION Subject Property MR Zoning 5,000 SF 10k GSF Structure 17 Units 1415 BELMONT New Development MUP 40 Unit Dev. #3030738 MR Zoning 5,000 SF 1320 UNIVERSITY New Development 36 Units / Retail / Parking HR Zoning MUP #3022715-LU CONFIDENTIAL OFFERING MEMORANDUM AGM, INC. 6

NEIGHBORHOOD HIGHLIGHTS Superior Capital Hill location 2 blocks from downtown Seattle Walking distance to Seattle University, Seattle Central Community College, and Seattle Academy of Arts & Sciences Located in the Pike/Pine Urban Village Corridor Located on Sound Transit bus routes with frequent service to downtown, Pike Place Market, and South Lake Union 10-minute walk from Sound Transit Capitol Hill Light Rail Station with service to downtown Seattle, Century Link Field, Pioneer Square, Northgate, and Seatac International Airport. Easy access to major transport routes including I-5, I-90, and Highway 99 Nearby Hospitals: Swedish First Hill, Swedish Cherry Hill, Harborview Medical Center, Virginia Mason Hospital, Seattle Children's Nearby Parks: Cal Anderson Park (7-acre park with water features, play area, athletic field, oversize chess boards, large lawn area, and footpaths), Seven Hills Park, Homer Harris Park, Spring Street Mini Park, McGilvra Place, First Hill Park, and Volunteer Park Nearby Restaurants/Bars: Plum Bistro, Stumptown Coffee Roasters, Needle & Thread Bar, Cafe Presse, Old School Frozen Custard, Katsu Burger & Bar, Tavern Law, Madison Pub, Elysian Capitol Hill Brewery, Barrio Mexican Kitchen & Bar, Shucker's Restaurant, Vito's Restaurant & Lounge, Momiji Sushi, Lark Restaurant, Skillet, and many more Nearby Grocery: Walking distance to Quality Food Center (QFC), Safeway, Trader Joe's, and Whole Foods CONFIDENTIAL OFFERING MEMORANDUM AGM, INC. 7

CAPITOL HILL SNAPSHOT Population 45,253 Median Household Income $73,400 Owner Occupied 29% Renter Occupied 71% Walk Score Bike Score Transit Score 98 - Walker's Paradise 86 - Very Bikable 79 - Excellent Transit Median 1 Bed/1 Bath $1,949 Median 2 Bed/1 Bath $2,694 Downtown Seattle Commute Times Bellevue Commute Times Bus: 14 minutes via Bus 2 & 13 Car: 3 minutes via E Union St Foot: 23 minutes via Seneca St Bike: 8 min Bus: 47 minutes via Bus 2 & 550 Car: 20 minutes via 23rd & I-90 CONFIDENTIAL OFFERING MEMORANDUM AGM, INC. 8

SEATTLE GROWTH CONFIDENTIAL OFFERING MEMORANDUM AGM, INC. 9

SEATTLE EMPLOYERS The Central Submarket s convenient commuting options link to the metro s largest and fastest-growing job centers. The opening of the Capitol Hill Link station in March 2016 puts the area in a good position to capitalize on the torrid job growth expected metrowide in the coming years. More-efficient commutes aid renter retention, an important consideration given the pace of construction in nearby areas. High-paying jobs, especially in tech and life sciences, as well as the city s urban amenities, should continue attracting well-educated young professionals and empty nesters alike, contributing to outsized demand growth. The tech professionals who flock to the Central Submarket contribute to some of the highest educational attainment in the metro and command salaries almost 50% higher than the metrowide median. This helped boost Central Seattle s median household income more than most other submarkets this cycle. Numerous tech companies have a presence in the urban core, and many are expanding rapidly. The ongoing influx of young computer programmers and software engineers bodes well for the submarket due to its relative affordability compared to neighboring areas. Developers have targeted this cohort, leading to mass gentrification in many of Central's neighborhoods. Adobe Alaska Airlines Amazon Apple AT&T Wireless Boeing Costco Expedia Expeditors International F5 Networks Facebook Fred Hutchinson Gates Foundation Getty Images Google Microsoft Nintendo Nordstrom Paccar Real Networks REI Russell Investments SpaceX Starbucks Symetra Financial Tableau Software T-Mobile Twitter Uber University of Washington Virginia Mason Weyerhaeuser Zillow Zulily CONFIDENTIAL OFFERING MEMORANDUM AGM, INC. 10

SALE COMPS 1 KENSINGTON APARTMENTS 1627 Belmont Avenue Seattle, WA 98122 Sale Price: Year Built: $6,000,000 1914 Lot Size: Building SF: Price PSF: $497.18 No. Units: 33 Price / Unit: $181,818 8,150 SF 12,068 SF 1 MR Zoning 2 THE SANTA FE 1417 Belmont Avenue Seattle, WA 98122 Sale Price: Year Built: $3,075,000 1964 Lot Size: Building SF: Price PSF: $507.59 No. Units: 11 5,000 SF 6,058 SF Price / Unit: $279,545 Closed: 04/25/2018 2 MR Zoning 3 LOMBARDY COURT APARTMENTS 421 Summit Avenue E Seattle, WA 98102 Sale Price: Year Built: $3,236,800 1929 Lot Size: Building SF: Price PSF: $235.80 No. Units: 18 7,200 SF 13,727 SF Price / Unit: $179,822 Closed: 05/01/2017 3 MR Zoning CONFIDENTIAL OFFERING MEMORANDUM AGM, INC. 11

SALE COMPS 4 LOUIS ARMS APARTMENTS 1515 Bellevue Avenue Seattle, WA 98122 Sale Price: $5,500,000 Lot Size: 5,250 SF Year Built: 1925 Building SF: 9,760 SF Price PSF: $563.52 No. Units: 24 Price / Unit: $229,166 4 NC3P-65 Zoning 5 SUMMIT CHALET 427 Summit Avenue Seattle, WA 98102 Sale Price: $3,762,467 Lot Size: 7,200 SF Year Built: 1965 Building SF: 7,891 SF Price PSF: $476.80 No. Units: 12 Price / Unit: $313,538 Closed: 07/10/2017 5 MR Zoning 6 GARDEN STUDIOS 1517 Bellevue Avenue Seattle, WA 98122 Sale Price: $3,750,000 Lot Size: 5,249 SF Year Built: 1959 Building SF: 5,556 SF Price PSF: $674.95 No. Units: 12 Price / Unit: $312,500 Closed: 05/23/2018 6 NC3-65 Zoning CONFIDENTIAL OFFERING MEMORANDUM AGM, INC. 12

SALE COMPS SUMMARY SUBJECT PROPERTY PRICE BLDG SF PRICE/SF PRICE/UNIT # OF UNITS $3,450,000 10,020 SF $344.31 $202,941 17 SALE COMPS PRICE BLDG SF PRICE/SF PRICE/UNIT # OF UNITS CLOSE Kensington Apartments 1627 Belmont Avenue Seattle, WA 98122 $6,000,000 12,068 SF $497.18 $181,818 33 On Market The Santa Fe 1417 Belmont Avenue Seattle, WA 98122 $3,075,000 6,058 SF $507.59 $279,545 11 04/25/2018 Lombardy Court Apartments 421 Summit Avenue E Seattle, WA 98102 $3,236,800 13,727 SF $235.80 $179,822 18 05/01/2017 Louis Arms Apartments 1515 Bellevue Avenue Seattle, WA 98122 $5,500,000 9,760 SF $563.52 $229,166 24 On Market Summit Chalet 427 Summit Avenue Seattle, WA 98102 $3,762,467 7,891 SF $476.80 $313,538 12 07/10/2017 Garden Studios 1517 Bellevue Avenue Seattle, WA 98122 $3,750,000 5,556 SF $674.95 $312,500 12 05/23/2018 PRICE BLDG SF PRICE/SF PRICE/UNIT # OF UNITS CLOSE Totals/Averages $4,220,711 9,177 SF $459.92 $230,262 18.33 500 E Union 500 East Union Street Seattle, WA 98122 1 2 3 4 5 6 CONFIDENTIAL OFFERING MEMORANDUM AGM, INC. 13

CONTACT US 2100 124TH AVENUE NE, BELLEVUE, WA 98005 RAY WEST 206.818.2689 ray@agmrealestate.com TROY GESSEL 425.576.8747 troy@agmrealestate.com AGM creatively structures your transacti on to achieve a superior soluti on for your investment portfolio. CONFIDENTIAL OFFERING MEMORANDUM AGM, INC. The information contained herein, while not guaranteed, has been secured from sources AGM Incorporated, a commercial real estate company, believes to be reliable and is considered the most current and correct data available. Prospective