ROYAL VIEW APARTMENTS

ROYAL VIEW APARTMENTS 200 MILTON WAY, MILTON, WA 98354 CONTACT INFORMATION: STEVE FISCHER PRINCIPAL BROKER 206.505.9435 fischer@westlakeassociates.com TYLER SMITH PRINCIPAL BROKER 206.505.9425 tylersmith@westlakeassociates.com JOE KINKOPF BROKER 206.321.8344 joek@westlakeassociates.com

OFFERING SUMMARY WESTLAKE ASSOCIATES IS PROUD TO PRESENT A 16 UNIT VALUE ADD OPPORTUNITY IN MILTON, WA. Originally built in 1984 and substantially renovated in the last couple of years, the Royal View Apartments is a 16-unit under managed apartment building in Milton, WA. The building consists of large two and three bedroom units with an average unit size of 1,025 SF. All of of the units have their own private garages with a total of 17 garages onsite. 10 of the 16 units have been renovated, giving the new owner the opportunity to further improve the asset and push cashflow. With renovation of the 6 remaining units, new ownership could push rents on average of $227 per unit to get to proven current renovated rents. If new ownership chooses to not pursue further renovations; there is loss of lease of $775 per month, with some units being as much as $155 below current market. Additionally, there is a clear path to reduce utility cost with the implementation of utility metering system. Trailing 12 months utility cost were $33,646, while pass through utility recovery is currently budgeted at $1,410 per Month ($88 per unit) or $16,920 annually. Projected utility metering along with continued pass through of garbage billing could achieve as much as 95% utility recovery which could boost NOI an estimated $12,000 - $14,000 per year. Price: $3,000,000 Price Per Unit: $187,500 Price Per NRSF: $182.82 Cap Rate: 6.37% Market Cap Rate: 7.11 % GRM: 7.30 Building Size: 17,908 SF Lot Size: 3.09 Acres Year Built: 1984 Year Renovated: 2017 ADDRESS 200 Milton Way, Milton, WA 98354 PROPERTY HIGHLIGHTS STABILIZED ASSET WITH GREAT CASH FLOW AT CLOSING 10 OF 16 UNITS HAVE BEEN RENOVATED ABILITY TO RENOVATE REMAINING UNITS WITH EXISTING UNITS AS MUCH AS $300 BELOW RENOVATED RENT IN PLACE 6.37% CAP RATE WITH PROFESSIONAL MANAGEMENT PERFECTLY SITUATEDTED TO INSTALL WATER METER AND INCREASE UTILITY PASS THROUGH TO TENANTS WATER METERING POTENTIALLY ESTIMATED TED TO CUT OPERATING EXPENSES BY OVER 10% $12,000 - $14,000 POTENTIAL NOI BOOST WITH WATER METER INSTALL - $233,333 POTENTIAL VALUE ADD ALL UNITS ARE 2 BEDROOM OR 3 BEDROOMS (TOTAL OF 34 BEDROOMS) 17 PRIVATE GARAGE GE SPACES WASHER AND DRYER IN EVERY UNIT FIREPLACES, OPEN KITCHENS AND WALK IN CLOSETS COPPER PLUMBING / WIRING / DOUBLE PANE WINDOWS CLOSE PROXIMITY TO INTERSTATE 5 - EASY ACCESS CESS NORTH OR SOUTH CLOSE PROXIMITY TO FUTURE SOUND TRANSIT LIGHT RAIL LINES FEDERAL WAY LIGHT RAIL LINE COMPLETED BY 2024 (BLOCKS FROM PROPOSED TACOMA EXTENSION STATIONS) TIONS)

PROPERTY DETAILS SALE PRICE $3,000, 000,000 LOCATION INFORMATION Building Name Street Address Royal View Apartments 200 Milton Way City, State, Zip Milton, WA 98354 County/Township Market Submarket Cross Streets Side Of Street Nearest Highway Nearest Airport BUILDING INFORMATION Building Size Pierce Puyallup MF Outlying Puyallup MF Milton Way and 20th Street E East Interstate 5-1/2 mile Sea-Tac - 21 miles 17,908 SF Occupancy % 95.0% Number Of Floors 3 Year Built 1984 Last Renovated 2017 Gross Leasable Area Framing Condition Roof 16,410 SF Wood Good Number Of Buildings 4 Tile PROPERTY DETAILS Property Type Property Subtype Zoning Lot Size Multifamily Low-Rise/Garden RM 3.09 Acres APN# 0420086007 Submarket Outlying Puyallup MF Traffic Count 10,590 Traffic Count Street PARKING & TRANSPORTATIONTION Street Parking Parking Type Milton Way Yes Structure Number Of Spaces 42 Parking Description UTILITIES & AMENITIES 50 total stalls with 17 private garages Restrooms 20 Landscaping Power Plumbing Description Exterior Description Interior Description Utilities Description Garden style with asphalt parking Yes Copper Wood material Not sub metered for water

FINANCIAL OFFERING # OF UNITS UNIT TYPE AVG SIZE PROPERTY OVERVIEW Number of Units 16 Year Constructed 1984 Remodel 2017 Rentable SF Lot Size Zoning Exterior 16,410 SF Price per Unit RM Wood material $3,000,000 $187,500 Price per NRSF $167.52 Price per Land SF $22.29 Current Cap PSF PRO FORMA PSF 12 2/1 975 $1,405 $1.44 $1,465 $1.50 2 2/2 975 $1,620 $1.66 $1,645 $1.69 2 3/2 1,380 Total AVG $1,822 $1.32 $1,825 $1.32 $23,744 $1.45 $24,520 $1.49 INCOME 3.09 Acres PRICE ANALYSIS Sale Price CURRENT 6.37% Scheduled Rent Income CURRENT PRO FORMA $284,940 $294,240 + Other Income $4,956 $4,956 + Utility Bill Back $16,920 $28,800 + Pet Rent $1,200 $1,800 + Parking Income $1,200 $9,600 $284, $284,928 928 $339,396 $15,460 $16,969 $293,755 $322,426 Scheduled Gross Income - Vacancy & Cr Losses (5.00%) Gross Income EXPENSES CURRENT PER UNIT PRO FORMA PER UNIT $23,154 $1,447 $28,500 $1,781 Current GRM 9.70 Market Cap 7.11% Real Estate Taxes (2018) Market GRM 8.84 Insurance (2016) $5,000 $312 $5,000 $312 Utilities W/S/G/E $33,646 $2,102 $33,646 $2,102 FINANCING Management $13,219 $826 $14,509 $906 Loan Amount $1,938,000 Resident Manager $6,000 $375 $6,000 $375 Down Payment $1,062,000 Maintenance / Turnover $12,800 $800 $12,800 $800 Grounds $4,800 $300 $4,800 $300 Reserves $4,000 $250 $4,000 $250 Total Operating Expenses $102,619 $6,4 $6,413 13 $109,255 $6, $6,828 828 Net Operating Income $191,136 $11, $11,946 946 $213,171 $13,323 ($121,314) ($7,582) ($121,314) ($7,582) $69,822 $4,363 $91,857 $5,741 Rate % Down Amortization Term 4.750% 35.4% 30 5 Years Monthly Payment $10,109 Annual Payment $121,314 The statements, figures & computations herein, while not guaranteed, are secured from sources we believe reliable. Investors should verify all numbers, computations, and assumptions before committing to an investment. Less Annual Debt Service Cash Before Taxes Plus Principal Reduction $29,905.00 $1,869.06 $29,905.00 $1,869.06 Total Return Before Taxes $99,727.20 $6,232.95 $121,762.20 $7,610.14

FINANCIAL SUMMARY INVESTMENT OVERVIEW CURRENT MARKET Price $3,000,000 $3,000,000 Price per Unit $187,500 $187,500 CAP Rate 6.37% 7.11% GRM 9.70 8.84 Cash-on-Cash Return (yr 1) 6.57% 8.65% Total Return (yr 1) $99,727 $121,762 Debt Coverage Ratio 1.58 1.76 OPERATING DATA CURRENT MARKET Gross Scheduled Income $309,210 $339,396 Other Income $24,276 $45,156 Total Scheduled Income $309,210 $339,396 Vacancy Cost $15,460 $16,969 Gross Income $293,755 $322,426 Operating Expenses $102,619 $109,255 Net Operating Income $191,136 $213,171 Pre-Tax Cash Flow $69,822 $91,857 FINANCING DATA CURRENT MARKET Down Payment $1,062,000 $1,062,000 Loan Amount $1,938,000 $1,938,000 Debt Service $121,314 $121,314 Debt Service Monthly $10,109 $10,109

RENT ROLL UNITS BEDROOM/ BATH SIZE RENT PSF MARKET RENT MARKET RENT PSF 200-A 3 x 2 1,380 $1,750 $1.27 $1,825 $1.32 200-B 2 x 1 975 $1,345 $1.38 $1,465 $1.50 200-C 3 x 2 1,380 $1,895 $1.37 $1,825 $1.32 200-D 2 x 1 975 $1,250 $1.28 $1,465 $1.50 202-E 2 x 1 975 $1,295 $1.33 $1,465 $1.50 202-F 2 x 2 975 $1,595 $1.64 $1,645 $1.69 202-G 2 x 1 975 $1,295 $1.33 $1,465 $1.50 202-H 2 x 2 975 $1,645 $1.69 $1,645 $1.69 204-1 2 x 1 975 $1,550 $1.59 $1,465 $1.50 204-2 2 x 1 975 $1,495 $1.53 $1,465 $1.50 204-3 2 x 1 975 $1,395 $1.43 $1,465 $1.50 204-4 2 x 1 975 $1,550 $1.59 $1,465 $1.50 206-5 2 x 1 975 $1,395 $1.43 $1,465 $1.50 206-6 2 x 1 975 $1,550 $1.59 $1,465 $1.50 206-7 2 x 1 975 $1,395 $1.43 $1,465 $1.50 206-8 2 x 1 975 $1,345 $1.38 $1,465 $1.50 16 16,410 $23,745 $1.45 $24,520 $1.50 Averages 1,025 $1,484 $1.45 $1,532 $1.50 The statements, ts, figures & computations herein, ein, while not guaranteed, are secured ed from sources we believe reliable. Investors should verify all numbers, computations, and assumptions before e committing to an investment. t.

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SOUND TRANSIT 2 OVERVIEW The Sound Transit 3 Plan: Adds 62 NEW MILES OF LIGHT RAIL with stations serving 37 additional areas for a regional system reaching 116 miles. Establishes BRT on I-405/SR-518 and SR-522/NE 145th. Expands capacity and service of the Sounder south rail line. Includes ST Express bus service. Improves access to stations for bicyclists, pedestrians, drivers, and pick-up and drop-off services, and expands parking at stations. WESTLAKE ASSOCIATES, INC

I-5 SOUND TRANSIT 3 LINK LIGHT RAIL PROJECTS SR 16 S JACKSON AVENUE Pearl Tacoma Community College N ORCHARD STREET S 19TH STREET SR 509 MAP KEY AT GRADE ELEVATED STATION AREA SR 516 Union Hilltop Sprague Stevens SR 16 I-705 I-5 LIGHT RAIL SOUND MOVE/ST2 SOUND MOVE/ST2 STATION South 272nd S 272ND STREET I-5 Click Here for More About the Kent/Des Moines to Tacoma Light Rail Federal Way Transit Center SR 99 S 320TH STREET Click Here for More About the Tacoma Link Extension to Tacoma Community Fly Over the Federal Way South Federal Way SR 18 PORTLAND AVENUE E 54TH AVENUE E SR 161 I-5 Tacoma Dome East Tacoma Fife KEY Current Planned ST3 New Station New Station / Added Parking Improved Station Major Retail Transfer WESTLAKE ASSOCIATES, INC

DUPONT-STEILACOOM ROAD 41ST DIVISION DRIVE SOUND TRANSIT 3 COMMUTER RAIL PROJECTS S 56TH STREET Click Here for More About the Sounder Expansion to DuPont S 74TH STREET 100TH STREET SW SR 512 I-5 BERKELEY STREET SW Tillicum 150TH STREET SW DuPont KEY Current Planned ST3 New Station / Added Parking Improved Station WESTLAKE ASSOCIATES, INC

I-5 SOUND TRANSIT 3 BUS RAPID TRANSIT Lynnwood TC SR 527 Canyon Park SR 522 UW Bothell/NE 195th Brickyard MAP KEY BRT STATION EXISTING FACILITY Totem Lake/Kingsgate NE 85th St Kirkland Click Here for More About the I-405 Bus Rapid Transit Bellevue TC I-90 SR 520 NE 44th St Renton Burien TC SR 509 I-5 South Renton MAPLE VALLEY HWY Tukwila Intl Blvd SR 167 KEY Current ST Express Buss Planned ST3 New Station New Station / Added Parking Improved Station Major Retail Transfer WESTLAKE ASSOCIATES, INC

SR-167 EXPANSION 1 2 3 TOLLING SR 167 All lanes on the new portion of SR-167 will be tolled using two electronic toll points. There will be no tollbooths. Toll rates will be set by time of day more during peak periods and less during mid-day, evenings and weekends. Toll rates for the new portion of SR-167 have not been determined. A toll authorization bill must be passed by the Legislature before tolling begins. $95 million from tolls will be used to construct the SR-167 Completion project. The Washington State Transportation Commission would then oversee the rate-setting process. The rate-setting process will begin closer to when the project is completed. WORKING WITH SOUND TRANSIT WSDOT is working closely with Sound Transit on the Tacoma Dome Link Extension project as both agencies work to build new major infrastructure projects in the area. RIPARIAN RESTORATION PROGRAM (RRP) The RRP is a watershed strategy for stormwater management that will use an innovative approach to conventional flow control facilities. It will reduce flood levels, improve degraded stream and riparian corridor habitat, and provide benefits to fish and wildlife. Taylor Way 99 2 509 1 Future Futuer Sound Transit Station 5 4 3 Valley Ave E 167 5 1 Subject Property 20th St E 161 Milton Way 24th St E 36th St E 4 DIVERGING DIAMOND INTERCHANGE (DDI) Through this project, WSDOT will implement the state s second Diverging Diamond Interchange. The DDI will function as an on and off ramp to I-5. The unique design will improve traffic safety by decreasing the amount of conflict points throughout the interchange. 167 161 48th St E 5 SINGLE POINT URBAN INTERCHANGE (SPUI) A single point urban Interchange, known as a SPUI, is planned to be constructed at the new interchange between SR-167 and SR-161. These interchanges are efficient and only utilize one traffic signal to control all the movements at the interchange. First Construction Step on SR-167 Extension to Start Next Year READ THE FULL ARTICLE HERE 5 N Meridian A WESTLAKE ASSOCIATES, INC

LOCATION PIERCE COUNTY IN THE NEWS THE NEWS TRIBUNE Tacoma apartment rents see steep rise in 2016, data show. If you re looking for a singlebedroom apartment in Tacoma, get ready to pay up. Rents for singlebedroom apartments have risen faster than the market as a whole, according to Seattle-based real estate data firm Zillow... CLICK HERE FOR FULL ARTICLE CURBED SEATTLE Tacoma rent is rising faster than Seattle rent. Apartment List (AL) s latest numbers show the city of Tacoma s median rent as having a 7.4 percent increase since this time last year, with $1,230 for a onebedroom or $1,530 for a two-bedroom the former just $150 per month behind Seattle s. CLICK HERE FOR FULL ARTICLE THE NEWS TRIBUNE Apartments go fast in Tacoma - why you probably can t even find one online....nearly 200 people per day moved to Pierce, King, Kitsap and Snohomish counties from mid-2013 through mid-2017, state and Census data show. That s about 285,900 people total. At the same time, only 82,521 housing units were built in those areas. CLICK HERE FOR FULL ARTICLE THE NEWS TRIBUNE Sound Transit steady-as-shegoes on Tacoma light rail plans, CEO says. The light rail extension from Federal Way to Tacoma is on track to begin with public involvement on alignment alternatives early next year. Establishing early community consensus on route and station locations will be important to staying on time. CLICK HERE FOR FULL ARTICLE THE NEWS TRIBUNE We re growing faster than King County - and our rents prove it....tacoma is tied for No. 6 in the nation for highest year-over-year rent increase... CLICK HERE FOR FULL ARTICLE THE NEWS TRIBUNE In a hot market, life can get hard fast when your home is someone else s investment. We had to go to work finding her a place to live. It s a tough situation. People want to capitalize on the investment they made. That s why they made it. But then CLICK HERE FOR FULL ARTICLE

LOCATION PIERCE COUNTY IN THE NEWS CONTINUED THE NEWS TRIBUNE Feeling more crowded in Gig Harbor or Tacoma? Growth numbers agree. By the end of 2016, Gig Harbor had 6 percent more residents than the year before, according to data compiled by the Puget Sound Regional Council. That s 510 more residents, according to the report, which uses information from the state Office of Financial Management. Tacoma attracted the most new residents of any city in Pierce County. Last year, the city gained 3,800 more people, bringing the city s population to around 206,100 residents. That s a growth rate of nearly 2 percent, the regional council s report said. TACOMA DAILY INDEX CLICK HERE FOR FULL ARTICLE Housing market reports - Tacoma has one of the fastest growing rents in State. Ranking third, Tacoma s 98403 registered a median sale price of $439,500. Tacoma s 98407 has the largest residential transaction in Pierce County so far- the property at 4501 North Stevens Street changed hands in late September 2017 for $5,356,666. Here are some more highlights from the Property Shark study: - Fox Island s 98333 is #1 most expensive zip code in Pierce County, and is the only Pierce County zip code featured in the top 50 priciest zips in Washington state - Tacoma has two more zip codes in the top 10, 98422 and 98407, ranking 6th and 10th respectively. CLICK HERE FOR FULL ARTICLE THE NEWS TRIBUNE Thanks again, Seattle: Tacoma s rising rents, affordability takes hits in new lists. Tacoma s resulting double-digit rent increases have landed the City of Destiny on the latest ignoble list: Cities in the nation with the highest year-over-year rent increases. The list compiled by RentCafe places Tacoma fourth in the nation for the highest percentage rent increase. The top five include the California communities of Stockton, Modesto and Sacramento. Lancaster, California, in northern Los Angeles County, was at the top of the list. CLICK HERE FOR FULL ARTICLE

PUGET SOUND SUMMARY PUGET SOUND Set in the beautiful Pacific Northwest, the greater Seattle area is a national center for manufacturing, technology, services, international trade and tourism. MAJOR EMPLOYERS Today some of the world s most recognizable Fortune 500 companies call Seattle home: Microsoft, Starbucks, Amazon, Nordstrom, Costco and REI. Other major companies in the area include Boeing, T-Mobile. Expedia, F5 Networks and Nintendo of America. According to the Puget Sound Business Journal, technology companies are leading the way in employment growth in the Seattle MSA. As the home of Microsoft and Amazon, Seattle accounts for over 20% of the nation s software publishing employment. Microsoft is one of the top employers in the sate with over 42,000 employees. Their World Headquarters, located in Redmond is over 10 million square feet. largest maker of large commercial jets, and second largest global defense contractor. Boeing is one of the largest employers in the Puget Sound, employing approximately 80,000 in Washington. Employment is expanding through the greater Seattle area. The Puget Sound region is projected to generate 1.2 million new jobs by 2040. INTERNATIONAL TRADE Seattle has remained one of the most resilient cities due to its diverse industries, making it more attractive for new companies to relocate and expand in the area. The Port of Seattle, which also operates the Seattle-Tacoma International Airport, is a major gateway to Asia and cruises to Alaska. The Port of Seattle ranks as the 6th business seaport in the US, playing a key role in bringing international trade, transportation and travel to the Pacific Northwest. PUGET SOUND LARGEST EMPLOYERS 80,000 Employees 42,000 Employees 40,000 Employees JOINT BASE LEWIS-MCCHORD 56,000 Employees 25,000 Employees 20,000 Employees The Puget Sound has become a international leader in innovative industries with organizations such as the Fred Hutchinson Cancer Research Center, the University of Washington Medical Center and the Bill and Melinda Gates foundation. Healthcare employment is projected to continue to grow dramatically and Seattle has the 5th largest biotechnology Research and Development alliance between the University of Washington and the Fred Hutchinson Cancer Research Center. The Puget Sound is one of the capitals of the aerospace industry anchored by Boeing, the world s largest aerospace company, second- RECREATION The region is known for its quality of life, arts, and outdoor lifestyle which helps attract an educated workforce. Numerous camping, hiking, winter sports, and recreational activities are located a short drive from the city. Seattle s main attractions include Pike Place Market, the Space Needle, and Seattle Center, home of the 1962 World s Fair. Seattle is home to a number of professional sports teams including the 2013 Super Bowl champions, the Seattle Seahawks, the Seattle Mariners, and the Seattle Sounders FC soccer team. 20,000 Employees 15,000 Employees 10,000 Employees 13,000 Employees

BROKER BIO & CONTACT STEVE FISCHER Principal Broker 1200 Westlake Ave N, Suite 310 Seattle, WA 98109 T 206.505.9435 C 425.830.2254 fischer@westlakeassociates.com TYLER SMITH Principal Broker 1200 Westlake Ave N, Suite 310 Seattle, WA 98109 T 206.505.9425 C 206.612.2475 tylersmith@westlakeassociates.com JOE KINKOPF Broker 1200 Westlake Ave N, Suite 310 Seattle, WA 98109 T 206.505.9403 C 206.321.8344 joek@westlakeassociates.com PROFESSIONAL BACKGROUND A lifetime resident of the Seattle area, Steve graduated from the University of Washington with a degree in Economics. Beginning his real estate career as an analyst, his work ethic quickly transitioned from analyst to full time apartment broker. Since the inception of his brokerage career, Steve has successfully closed over $100 million in sales totaling over 100 transactions. To expand his skill set, Steve also manages a portfolio of 130 apartment units in the Seattle area. Steve excels at problem solving to complete his client s investment goals. His diverse background of brokerage and management provide a unique spectrum of knowledge. Drawing from this knowledge allows him to guide his clients not only through the sales process, but to also navigate the operational side of owning an apartment building. He truly is A Wealth of Experience. A firm believer of investing in real estate as a module to gain wealth, Steve has been actively investing in Seattle real estate since 2011. In 2012, he was unanimously voted a partner at Westlake Associates, Inc. Away from the office, Steve is a huge sports fan, enthusiast of the outdoors, enjoys cooking, an avid soccer player and a die-hard husky. PROFESSIONAL BACKGROUND For over 13 years, Tyler has specialized in the sale of middle market multi-family assets in the Puget Sound Region. Tyler s extensive experience includes the sale of various types of asset size and classifications. As an apartment owner himself, Tyler understands the importance of evaluating each client s needs individually and carefully. Since joining Westlake Associates, he has consistently been one of the firm s top performers and quickly rose to Partner. Tyler s consistent effort and drive have earned him Westlake Associates Top Producer award. Education Tyler earned a degree in economics from the University of Washington. Tyler worked in finance for a company headquartered in Irvine, CA before returning home to the Pacific Northwest. He joined Westlake Associates in 2004 and currently resides with his wife and two boys in Northeast Seattle. PROFESSIONAL BACKGROUND Joe specializes in the sale of multifamily properties in the Puget Sound. Upon graduation from the University of Washington, Joe began his career at Westlake. Growing up in North King County, Joe acquired a fascination with real estate after seeing the great change in his hometown as a result of urban growth. Joe enjoys looking at the numbers and analyzing different markets throughout the Puget Sound region to help his clients make the right investment decisions. Joe stresses the importance integrity and believes that dealing honestly with clients is the greatest priority in business.