Portland s Emergence AS A MAJOR U.S. REAL ESTATE MARKET Best performing multifamily investment market in the nation in terms of rent growth, revenue growth, and vacancy rate (> 2 million population) 1 st in GDP growth amongst 5 largest U.S. economies from 29 to 213 The Multi-housing Investment Report for the first half of 215 (1H215), is HFF Portland s 1 st semi-annual publication detailing macroeconomic trends relating to multi-housing real estate investment within the Portland MSA. Our goal is to inform investors of trends in Portland s rental and capital markets, as well as highlight reoccurring consumer, business, and job market trends that relate to real estate investing fundamentals. The report sources data compiled from major recognized apartment research firms, such as Axiometrics, REIS, CoStar, and Pierce Eislen, and is accompanied by commentary from HFF analysts and local publications. Oregon ranked #1 for percentage of net inbound moves in 213 & 214 MARKET SNAPSHOT 2Q215 2Q214 Delta YoY Change Population 2,345,333 3,779 1.33% Households 917,81 97,882 1.9% Total Apartment Inventory 112,372 2,528 2.3% Average Effective Rent $1,286 $141 12.31% #3 Best Places for Business & Careers in U.S. Average Rent PSF $1.43 $.15 12.6% Average Unit Size (SF) 899 2.22% Vacancy Rate 3.6% 4 bps Unemployment Rate 5.7% -6 bps America s Only Livable City Total Jobs 1,116,2 1,71,7 4.15% 1 of 12
In the first half of 215, the Portland apartment market flourished, showing improvements across nearly all major economic and investment market indicators. Nation-leading rent growth, driven by ample in-migration and a thriving economy, has made Portland one of the best places for multi-family real estate investment in the United States. As of July 215, asking rents in the Portland MSA increased by an impressive 13.8% year-over-year an acceleration of 72 bps over the 6.6% annual growth rate in July 214 enough to place 1 st among all large U.S. metros. The second quarter of 215 also marked the 21 st consecutive period of sub-5% vacancy in the MSA, which registered at 3.6% market-wide. The market-wide rent growth is stemming from rents set by new construction, and top performing properties in the downtown core area, which easily exceed $3. per square foot in many instances a rate that Portland had not seen prior to 215. The downtown Class-A apartment deliveries have begun to force middle-income earners to seek housing in close-in suburban areas, where Portland s Urban Growth Boundary continues to constrain supply. As seen in the top right chart of this page, rent growth in the Portland MSA has easily surpassed previous rent growth projections of major notable research firms over the last 36 months, with the fastest acceleration occurring in the trailing-6 months Portland MSA Rent Performance Reality HFF Witten Axiometrics REIS 15% 13.8% 13% 11% 9.1% 9% 7.9% 7.9% 7% 5% 3.4% 3% 1% YoY Rent Growth by Major U.S. Market 16% 14% 212 213 214 215 216 217 218 219 14.6% Forecast Period 4.% 4.% 4.5% 4.3% 12% 1% 8% Portland MSA Historical Job Growth by Month 6, 4, 2, 6% 4% 2% % Portland Denver San Fran Sacramento San Diego Atlanta Orlando Tampa Seattle Los Angeles Dallas Inland Emp Boston Phoenix National Las Vegas Miami Jacksonville NC Triangle Austin Houston Orange Cty Chicago Kansas City Twin Cities San Antonio Nash/Knox Philadelphia Baltimore Wash DC Richmond -2, -4, -6, -8, Jan-2 Jul-2 Jan-3 Jul-3 Jan-4 Jul-4 Jan-5 Jul-5 Jan-6 Jul-6 Jan-7 Jul-7 Jan-8 Jul-8 Jan-9 Jul-9 Jan-1 Jul-1 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Strongest Employment Growth in over a Decade Portland s revitalized employment market, which surpassed prerecession performance levels in 1H215, is a primary force driving market fundamentals. According to Oregon Labor Market Information Systems ( OLMIS ), the July unemployment rate (5.7%) has declined 6 bps year-over-year. The unemployment rate is indicative to the relative strength of the employment market throughout the MSA, which added ±4,9 (4.4%) private sector jobs in the past year, and ±44,5 (4.2%) total non-farm jobs (not seasonally adjusted). Since the trough in 2Q21, the Portland MSA has added 117,5 private sector jobs, a 14% increase. 2 of 12
In-Migration Outweighing Supply Additions Portland s quality of living and relative affordability compared to other West Coast markets has resulted in significant resident and business in-migration. Since 21, the Portland MSA added approximately 5,1 households (+5.8%). During the same period, an estimated 6,939 multi-family units and 24,7 single family homes were constructed, resulting in a shortage of roughly 18,371 housing units and upward pressure on housing costs. Allocation towards housing costs reached an all-time high in Portland in 4Q214 at ±19.3%. The recent increase in the amount Portlander s are willing to spend on housing contributes to the city s substantial rent growth. Although this allocation has increased in recent years, the cost ratio is well below the typical one-third of an individual s gross income, and also below many other West Coast cities which often exceed 35%. The current gap between similar markets, positions Portland well among its western US peers, and suggests that rents may have room to grow until they reach comparable levels. INCOME ALLOCATION TOWARDS HOUSING COSTS Portland MSA $11 4% $9 $7 2.9% 35% 3% 25% Housing Cost/Total Income (RHS) $5 $3 $1 2% 15% 1% 5% Disposable Income Ex-Housing (LHS) Annual Housing Cost (LHS) 28 29 21 211 212 213 214 215 Seattle MSA San Francisco MSA $11 4% $11 37.7% 4% $9 $7 23.4% 35% 3% 25% $9 $7 35% 3% 25% $5 2% $5 2% $3 $1 15% 1% 5% $3 $1 15% 1% 5% 28 29 21 211 212 213 214 215 28 29 21 211 212 213 214 215 The charts above represent the percentage of income residents allocate towards housing costs in major West Coast markets. 3 of 12
PORTLAND MARKET HISTORICAL DATA Portland MSA Apartment Market Rents Portland MSA Apartment Market Inventory Rent $1, $95 $9 $85 $8 $75 VACANCY Vacancy 7% 6 5 4 3 2 1 Units 114, 112, 11, 18, 16, 14, 12, 1, VACANCY Vacancy 7% 6 5 4 3 2 1 $7 21 211 212 213 214 215 98, 21 211 212 213 214 215 SUBMARKET SNAPSHOT Submarket Inventory (Units) Annual Inventory Growth YoY Change Avg Effective Rent Rent PSF YoY Change Vacancy YoY Change Beaverton/Hillsboro 31,573 243.78% $1,92 $1.27 15.1% 3.1% -3 bps Tigard/Oswego 18,859 276 1.49% $1,137 $1.25 9.8% 2.8% 1 bps Vancouver 17,43 4 2.35% $973 $1.9 14.6% 4.7% -2 bps East Gresham 13,879 54.39% $87 $1.7 17.2%.8% 1 bps Northwest 12,515 746 6.34% $1,645 $2.21 7.9% 6.9% 17 bps Milwaukie/Oregon City 9,54.% $977 $1.2 13.9% 1.% -8 bps Northeast 8,63 89 1.38% $1,245 $1.78 7.8% 7.2% 36 bps Total/Average 112,372 2,528 2.3% $1,286 $1.43 12.31% 3.6% 4 bps 4 of 12
Recent Notable News Nike: In early 215, Nike began construction on its $44+ million, 1.3 million sq. ft. campus expansion. Development plans consist of two new office buildings, 288, sq. ft. accessory space and 4,7 additional employee parking spaces. The expansion is projected to create 12, direct and indirect jobs by 22, adding to the company s employment growth that has exceeded a 6% increase in Portland since 26. MAX Orange Line Expansion: The 7.3-mile light rail extension was just completed in South Portland. The $1.5 billion infrastructure investment is estimated to generate 14,5 jobs and $573 million in personal earnings in the MSA. The project also includes a $143 million transit bridge named Tilikum Crossing. Both projects were under budget and ahead of schedule. Oregon Health & Sciences University: OHSU is in the middle of multiple expansion projects, which are largely funded by Phil Knight s Billion Dollar Cancer Challenge. The challenge successfully reached its $5 million public contribution goal in June and will be matched by the Knight family, totaling $1 billion of total contribution. OHSU plans to develop two additional research facilities, as well as an outpatient and guest housing building, at roughly one million sq. ft. in Portland s South Waterfront. This comes off the 214 opening of the $295 million Collaborative Life Sciences Building. With more than 65, sq. ft. of labs and classrooms, it is the largest educational building in Oregon, catering to over 3, employees, students and patients daily. Under Armour: In April 215 Under Armour announced plans for expansion, leasing ±7, sq. ft. of the former YMCA building just south of Portland CBD. This will nearly quadruple the company s existing Portland office space, and provide room for an estimated 3 additional employees. Google: During the 1 st quarter of 215, Google announced the opening of a Portland office, leasing 5, sq. ft. in the U.S. Bank building in downtown Portland. Sources estimate that 1 employees will move into the space, and also suggest the company is seeking additional space in the downtown area. 5 of 12
Portland MSA Capital Trends The Portland apartment market had a record amount of transactions and total sales volume throughout the first half of 215. Year-to-date, there have been 22 transactions over $1MM twice the amount at this point in 214 for a total sales volume of $729,561,667 and a 7.6% year-over-year increase. The highly liquid market in 215 draws comparisons to peak conditions of 27, as transactional volume has eclipsed pre-recession levels by over 16%. In 215 the $1MM+ investor pool has become increasingly diverse as 19 different investors have made acquisitions in the market, the highest number for the first half of any year. Portland MSA Historical Rolling Sales Price Per Unit $4, $35, $3, $25, $2, $15, $1, $5, 22 23 24 25 26 27 28 29 21 211 212 213 214 215 Apartments Garden Mid/High rise Previous Peak As cap rates continuously decline, many west coast markets have appreciated in value. The Portland MSA in particular experienced the greatest cap rate compression of comparable markets over the last 12 months, falling 37 bps (Average of major west coast markets was -23 bps). Currently, Portland MSA cap rates for core assets are 4 4.5%, and value-add cap rates are 4.75 5.25%. Increases in urban transactions and compressed cap rates signal a strong Portland market. These market conditions tend to yield a greater amount of investment activity, which could be a continuing trend for Portland in the coming years. Portland MSA Historical Rolling 12 Month Sales Volume (+$1M) Transaction Volume $1,6,, $1,4,, $1,2,, $1,,, $8,, $6,, $4,, $2,, # of Transactions 22 23 24 25 26 27 28 29 21 211 212 213 214 215 Apartments Garden Mid/High rise X Transactions Per unit pricing for multi-family assets in the Portland MSA also registered strong increases during the period, ultimately remaining equal to record highs set in 4Q214 for three consecutive quarters. Per Real Capital Analytics, the 12-month rolling average sale price per unit was $173,994 ($5MM+ transactions). The 1H215 price per unit metrics reflect a decline of 2% from record numbers of YE214 (largely due to 215 urban transactions having smaller unit sizes), but are 28.4% greater than the peak pricing levels of 28. Meanwhile, price per square foot metrics saw large increases across both product types, up 9% year-over-year, on average. The increased valuation of Suburban property types, which inflated 13% year-over-year and roughly 5% over pre-recession period, had the largest attribution to the accelerated pricing. Exceptional rent growth, coupled with flat, to slightly declining, cap rates as a result of strong investor demand, have driven these price trends. Historical Cap Rates West Coast Markets 7.5% 7.% 6.5% 6.% 5.5% 5.% 4.5% 9/3/21 12/31/21 3/31/211 6/3/211 9/3/211 12/31/211 3/31/212 6/3/212 9/3/212 12/31/212 3/31/213 6/3/213 9/3/213 12/31/213 3/31/214 6/3/214 9/3/214 12/31/214 3/31/215 6/31/215 45 4 35 3 25 2 15 1 5 Portland Los Angeles San Francisco Seattle 6 of 12
Multi-family Sales Summary ($1M + ) 1H214 Transactions Volume Average Price $/Unit $/PSF Urban 2 $158,5, $79,25, $378,282 $486 Suburban 9 $269,237,428 $29,915,27 $136,254 $137 Total 11 $427,737,428 $38,885,221 $178,596 $186 1H215 Transactions Volume Average Price $/Unit $/PSF Urban 5 $165,845, $33,169, $327,11 $59 Suburban 17 $563,716,667 $33,159,84 $154,232 $157 Total 22 $729,561,667 $33,161,894 $175,291 $23 Year-Over-Year Change Transactions Volume Average Price $/Unit $/PSF Urban 15% 5% -58% -14% 5% Suburban 89% 19% 11% 13% 15% Total 1% 71% -15% -2% 9% YTD SALES COMPARABLES AS OF AUGUST 215 Date Name Loc. Type Year Built Address City Units NRSF Unit Size Urb: Urban, Sub: Suburban, G: Garden, M: Midrise, P: Podium Price $/Unit $/SF Buyer 8/15 Terrene at the Grove Sub G 213 889 SW Ash Meadows Circle Wilsonville 288 291,588 1,12 $59,5, $26,597 $24 Jackson Square Properties 8/15 Arnada Pointe Sub G 1996 482 NE Hazel Dell Avenue Vancouver 2 193,44 967 $28,1, $14,5 $145 Strata Equity Group 8/15 The Addison Sub G 29 7531 NE 18 th Street Vancouver 147 166,617 1,133 $21,75, $147,959 $131 Jackson Square Properties/ Friedkin Realty 8/15 Burnside 26 Urb M 214 2624 East Burnside Street Portland 135 8,126 594 $41,5, $37,47 $518 Blackrock Realty Advisors 7/15 Courtyard at Cedar Hills Sub G 1969 13643 SW Electric Street Beaverton 145 13,444 9 $19,85, $136,897 $152 Virtu Investments 7/15 Park at Tualatin* Sub G 1978 78 SW Sagert Street Tualatin 21 161,172 767 $28,, $133,333 $174 Tru America Multifamily 7/15 The Cordelia Urb M 214 777 NW 19 th Avenue Portland 135 9,17 667 $47,75, $353,74 $53 TIAA-CREF 7/15 Columbia Trails Sub G 22 1112 NW 15 th Street Gresham 264 254,596 964 $38,4, $145,455 $151 American Capital Group 7/15 Miramonte Lodge* Sub G 199/1991 122 SE McLoughlin Boulevard Milwaukie 21 164,144 782 $29,6, $14,952 $18 Starwood Capital Group 7/15 The Bluffs* Sub G 1968 1261 SE River Road Milwaukie 137 1,837 736 $17,5, $127,737 $174 Starwood Capital Group 6/15 Andover Park Sub G 1989 1525 SW Teal Boulevard Beaverton 24 233,674 974 $45,25, $188,542 $194 DiNapoli Capital Partners 6/15 Domaine at Villebois Sub G 27 289 SW Villebois Drive Wilsonville 274 266,243 972 $48,25, $175,274 $18 Holland Partner Group 6/15 Museum Place Urb M 23 11 SW Jefferson Street Portland 14 14,79 749 $59,5, $425, $568 Zurich Global Investment Advisors 6/15 26 Sub P 214 2451 NW 26 th Avenue Hillsboro 23 174,885 862 $47,275, $232,882 $27 The Praedium Group 6/15 Powell Valley Farms Sub G 1999 15 SW Pleasant View Drive Gresham 228 195,354 857 $27,8, $121,93 $142 Jackson Square Properties 6/15 Summerlinn Sub G 1999/25 4 Springtree Lane West Linn 94 116,748 1,242 $19,2, $24,255 $164 The Reliant Group 6/15 Wyndham Park Sub G 1995 1479 SW Scholls Ferry Road Beaverton 423 333,813 789 $63,9, $151,64 $191 Holland Partner Group 6/15 Haven at Charbonneau Sub G 1989 8755 SW Illahee Court Wilsonville 126 19,582 87 $16,, $126,984 $146 TruAmerica Multifamily 4/15 Canyon Creek Sub G 1999 2631 SW Canyon Creek Road Wilsonville 372 319,92 858 $49,5, $133,65 $155 Aukum Management 3/15 The Parker Urb M 214 1447 NW 12 th Avenue Portland 177 118,664 67 Conf. Conf. Conf. Invesco 3/15 Parkside Sub G 1999 2831 SE Palmquist Road Gresham 225 23,28 92 $23,1, $12,667 $114 KKR/Crossbeam 3/15 Redwood Creek Sub G 198 1215 SW Walden Lane Beaverton 46 343,64 846 $48,75, $12,74 $142 Tandem Property Management 3/15 Jasper Place* Sub G 1985 183 NW Walker Road Beaverton 1 98,527 985 $14,8, $148, $15 The Blackstone Group 3/15 Willow Grove* Sub G 1988 11981 SW Center Street Beaverton 119 11,82 931 $17,3, $145,378 $156 The Blackstone Group 3/15 Jasper Square* Sub G 1985 15195 SW Walker Road Beaverton 83 81,5 976 $14,366,667 $173,92 $177 The Blackstone Group 2/15 Element 17 Sub P 214 1563 SW 172 nd Terrace Beaverton 243 174,746 719 $39,, $16,494 $223 Security Properties 2/15 Harbour Court Sub P 2 91 North Harbour Drive Portland 99 98,815 998 $17,7, $178,788 $179 ConAm 1/15 Jory Trail Sub G 212 875 SW Ash Meadows Road Wilsonville 324 315,249 973 $59,, $182,99 $187 M&C Properties 1/15 Central Eastside Lofts Urb M 211 111 NE 6 th Avenue Portland 7 4,493 578 $18,945, $27,643 $468 Juniper Management Average 21 174,9 872 $34,334,345 $165,268 $19 Total (29 sales) 5,817 5,72,113 $961,361,667 *Property was part of a portfolio sale 7 of 12
Development Pipeline Since the economic downturn, supply arrived late to the Portland MSA market, creating a shortage of multi-housing units and generating pent-up demand. As seen below, an estimated 6,93 total units were delivered since 21 throughout the metro area, with approximately 2,992 units estimated to be currently in lease-up throughout the MSA. During the 5 year time span, the market has experienced positive net absorption of 8,467, averaging a positive net absorption of 1,693 units annually. With the spike in deliveries in 215, this number has experienced a decline, but still remained positive for the 22 nd consecutive quarter. Over the next four years, analysts forecast 14,272 units scheduled for delivery throughout the market, relieving some demand pressure. Average Quarterly Net Absorption vs. Average Quarterly Deliveries Deliveries 1, 9 8 NET ABSORPTION 7 6 5 4 3 2 1 29 21 211 212 213 214 215 A focus around transit-oriented development will continue, as urban areas and the Orenco Station neighborhood of Hillsboro are scheduled to receive a majority of the deliveries. Despite the projected supply increase in Portland, the demand outlook remains strong, as the MSA added 5,1 households and 122, jobs since 21. Even in light of the additions that have already occurred the vacancy rate is only 3.6% as of today, and has remained relatively flat with an average rate of 4.3% since January 21. HISTORICAL DEVELOPMENT Year Units Delivered 21 66 211 71 212 1,465 213 2,34 214 3,27 Projected YE 215 3,624 Total: 11,187 DELIVERY BY YEAR Year # of Properties Units Leasing/Pre-leasing 16 2,55 215 1 1,9 216 28 4,25 217 13 2,633 218 1 425 TBD 41 6,572 Total: 19 17,475 PORTLAND MSA PIPELINE Submarket # of Properties Units SW Portland 17 2,733 North Portland 16 1,725 SE Portland 15 1,785 NW Portland 12 1,738 NE Portland 11 1,452 Vancouver 9 1,43 Pearl District 7 1,456 Beaverton 5 884 Lloyd District 4 1,597 Hillsboro 4 1,45 South Waterfront 2 38 Oregon City 2 424 Beaverton/Portland 1 112 Tualatin 1 18 Lake Oswego 1 21 Hazel Dell 1 122 Portland MSA 18 17,264 * Numbers include properties in lease up 8 of 12
HFF Capabilities 1. 2. 3. 4. 5. Providing live debt quotes. We function as an active trading desk. Our information sharing system, CapTrack, provides real-time insight on lenders nationwide. We can pull up all quotes from, for instance, the last ten days to help calculate spot-on debt pricing. Feeding an active buyer list. We are informed of buyers nationwide who may be seeking a specific asset type at any given time. This allows us to have continuously updated lists of active buyers in the marketplace. Pushing price. Confidence in financing often leads to more aggressive bidding. Buyers can be more competitive with their bids when the financing options increase. LOAN SALES Increasing number of bids. Financing options open up the buyer pool; leveraged buyers are able to compete against formidable all-cash players. DEBT PLACEMENT CAPITAL CONSUMERS Developers Property Owners Private Equity Funds Institutional Investors REITs INVESTMENT SALES LOAN SERVICING CAPITAL PROVIDERS Commercial Banks Investment Banks CMBS Conduits/Debt Funds Institutional Investors/REITs Life Insurance Companies FUNDS MARKETING (HFF SECURITIES) EQUITY PLACEMENT Reducing risk. Minimize unrealistic financing offers the process is open to us, and under our control. From start to finish, we know what is required for a seamless close and a satisfied client. Top 5 Multi-Family Intermediaries 214 215 Since 214, HFF Total Sales Volume # of Transactions has ranked as $1,,, $9,, $8,, $7,, $6,, $5,, $4,, $3,, $2,, $1,, $ 28 $894,3, 16 $583,2, 17 $252,5, 16 $234,5, 7 $185,9, 3 25 2 15 1 5 the #1 apartment intermediary in Portland, with $894,3, in total transactional sales volume, and $323,621,3 in total apartment financing secured. 9 of 12
HFF Team Ira Virden Managing Director 53.417.5587 ivirden@hfflp.com Mr. Virden is a Managing Director with more than nine years of experience in the commercial real estate and finance industry. He is primarily responsible for investment sales, recapitalizations and raising joint venture equity for multi-housing transactions in the Pacific Northwest. Mr. Virden joined HFF in January 212. Prior to joining the firm, Mr. Virden served as a Senior Associate at Apartment Realty Advisors (ARA) where he helped open the Portland office. Prior to that, he was a Senior Associate and Associate Director of the NMHG at Marcus & Millichap. Kerry Hughes Associate Director 53.417.5584 khughes@hfflp.com Mr. Hughes is an Associate Director with ten years of experience in the commercial real estate and finance industry. He is primarily responsible for investment sales and equity placement for multi-housing transactions in the Pacific Northwest. Mr. Hughes joined HFF in April 28. While at HFF, he has contributed to the closing of 89 separate transactions totaling approximately $2.1 billion in volume. These transactions include more than $73 million in debt placement across all product types and $1.37 billion in investment sales and equity placement for multi-housing assets. Prior to joining the firm, Mr. Hughes had three years of multi-housing management experience with HSC Real Estate, Inc. 1 of 12
Recent Transactions TERRENE AT THE GROVE THE ADDISON COLUMBIA TRAILS MIRAMONTE LODGE & THE BLUFFS $59,5, 288 units Wilsonville, OR $21,75, 147 units Vancouver, WA $38,4, 264 units Gresham, OR $47,1, 368 units Milwaukie, OR THE CORDELIA THE PARK AT TUALATIN PREMIERE ON PINE CANYON CREEK THE PARKER JORY TRAIL AT THE GROVE $47,75, 135 units Portland, OR $28,, 21 units Tualatin, OR $243,35, 386 units Seattle, WA $49,5, 372 units Wilsonville, OR Confidential 177 units Portland, OR $59,, & Debt Placement 324 units Wilsonville, OR TOWNHOMES WITH A VIEW HARRISON TOWER HONEYMAN HARDWARE LOFTS SENECA VILLAGE ROCK CREEK LANDING ASA FLATS & LOFTS $16,25, & Debt Placement 192 units Clackamas, OR $53,, 185 units Portland, OR $37,5, 1 units Portland, OR $51,, 264 units Hillsboro, OR $8,, & Debt Placement 48 units Hillsboro, OR $15,5, 231 units Portland, OR ARDENDALE HIGHLAND HILLS WATERHOUSE PLACE SUNNYSIDE PLACE THE POINTE ARBOR CREEK $18,5, 166 units Vancouver, WA $49,325, 4 units Vancouver, WA $4,85, 279 units Beaverton, OR $14,1, & Debt Placement 18 units Clackamas, OR $39,5, & Debt Placement 388 units Vancouver, WA $47,25, 44 units Beaverton, OR Under Contract Currently Marketing THE MARK AT LAKE OSWEGO AVALON MONTCLAIR TERRACE PLATFORM 14 THE POINTE Under Contract 82 units Lake Oswego, OR Under Contract 225 units Gresham, OR Currently Marketing 188 units Portland, OR Currently Marketing 177 units Hillsboro, OR Currently Marketing 387 units Vancouver, WA 11 of 12
HFF Marketing Team Ira Virden Managing Director 53.417.5587 ivirden@hfflp.com Kerry Hughes Associate Director 53.417.5584 khughes@hfflp.com Anthony Palladino Real Estate Analyst 53.265.595 apalladino@hfflp.com Dean Ferris Real Estate Analyst 53.224.7788 dferris@hfflp.com Tristin Brenneke Production Coordinator 53.417.558 tbrenneke@hfflp.com 215 HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF. HFF Portland 1 SW Broadway, Suite 9 Portland, OR 9725 53.224.444 Information concerning the properties described herein has been obtained from sources other than HFF and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and any other specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. The client acknowledges market conditions may differ and/or change from those stated herein and as such any marketing proposal may need to be revised to reflect such conditions.