326 & 402 W Meeker & 405 Gowe Street

Offering Memorandum 326 & 402 W Meeker & 405 Gowe Street Kent, Washington

Exclusively Kurt Sorensen marketed by: +1 206 332 1490 [email protected] Join the block of two brew pubs, Starbucks, bakeries and restaurants, and a weekend Farmer’s Market

Investment Assemblage

The information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied, as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to be material, including, but not limited to, statements of income and expenses. CONSULT YOUR ATTORNEY, ACCOUNTANT OR OTHER PROFESSIONAL ADVISOR. 2018/OM/326 and 402 W Meeker and 405 Gowe Street 01 02 03 04 05

Property Market Investment Site Supportive Overview Overview Analysis Studies Reports

Bellevue | Seattle | Tacoma 1 nai-psp.com Why Not Live 01 or Work...

»» 1,584 feet from the train station »» 1,700 feet from the AMC Movie Theatre »» 275 feet from a bakery »» 300 feet from a brew pub »» 1,600 feet from Kent Station Shopping Center and the Justice Center »» 200 feet & 1,100 feet from the two most sought after apartments in Kent »» 500 feet from Town Square Fountain »» 200 feet from City Hall »» 8 second jaywalk to Starbucks Executive Summary 01 Property Overview Property

We are offering an assemblage of three buildings in the heart of downtown Kent. It has been owned by the same family for some forty (40) years. This Estate Sale provides the Buyer an opportunity to purchase assets based on current scheduled income and allows the Buyer to increase rents overtime. Rents that may be well below their market value. For example, one apartment rents for $400.00, ridiculously low. One retail store rents for $0.59 per square foot semi-gross! View the information sheets enclosed on neighborhood rents and judge for yourself.

Where is the upside? First, there is normalizing rents by raising them to market value. The second source of upside is the tremendous explosion of the population in downtown Kent. Hundreds of new apartments have been built and filled in the past 02 several years. The proximity to the train station, the new regional Justice Center, and the completion of the new Green River College campus are within blocks of the subject property.

Lastly, the vision of Kent is to see tall buildings in downtown. The city has zoned this block Downtown Commercial 03 Enterprise District (DCE) and allows for tall buildings. There is no better Investment Exit Strategy (IES) than buying well located, under-utilized, income producing the land in the heart of a city two blocks from a train station.

PRICE $2,452,000 04

326 & 402 W Meeker and 405 Gowe Street ADDRESS Kent, WA 05 TOTAL BUILDING SIZE 19,211 square feet

LAND SIZE 24,424 square feet

Bellevue | Seattle | Tacoma 3 nai-psp.com 01 Property Overview

01 Property Overview Property

ADDRESS 326 W Meeker 402 W Meeker 405 Gowe Street

LAND AREA 8,699 SF 7,774 SF 7,951 SF

BUILDING SIZE 6,240 SF 7,656 SF 5,325 SF 02

PARCEL NUMBER 982570-0365 982570-0360 982570-0410 03

YEAR BUILT 1920 1920 1953 / 1986

04 ZONING DCE DCE DCE

Rectangle Square SHAPE Square 05 Street to street Built to lot lines

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5 10 4

12 11 14 13 02

1. Train Station (22 minutes to downtown Seattle) 2. AMC Movie Theater 3. Green River College - Downtown campus 4. Town Square - Public Fountain Play Area 5. Platform Apartments - most expensive (PSF) apartments in Kent 6. Kent Station Shopping Center 7. The Dwell - second most expensive (PSF) 17 apartments in Kent 8. Sureware Center - Home of the Thunderbirds Hockey Team 9. Regional Justice Center 10. Chase Bank 11. Starbucks 12. Airways Brewing -The Bistro 13. Sweet Themes Bakery 14. Kent Public Library 15. The subject property 16. The subject property 17. The subject property 18 18. Police Station and City of Kent Office Building and Courthouse Market Overview

The sixth largest city in the State of Washington, Kent is at the heart of the Seattle-Tacoma Metroplex. Accessibility is Kent’s 01 hallmark. As this map indicates, the city is 22 minutes by train and roughly 35-40 minutes from “Everywhere Northwest”: Central Business Districts of Seattle, Bellevue and Tacoma.

Nearly 120,000 people call Kent home. It has been named “one of the best places to live” by Seattle-Metropolitan 02 Magazine. A few years back, Sports Illustrated named Kent “Sportstown of the Year for Washington.” The 154,500 square foot

ShoWare Center is home to the Seattle Thunderbirds (hockey), the Tacoma Stars (soccer) and the Seattle Mist (legends football). Overview Market

This offering is a key piece in the redevelopment of the two “core” blocks of downtown, a short walk to the train to Seattle and Tacoma, Green River college, shopping, brew joints and cafes.

A once thriving agricultural area, today Kent is the fourth largest manufacturing and distribution area in the United States. Among Kent’s top employers: Boeing operates a manufacturing plant; Amazon runs a fulfillment center; both REI and Oberto Sausage Company operate headquarters, and several other employers include:

Bellevue | Seattle | Tacoma 7 nai-psp.com 02 Market Overview

is the fifth largest city in King County with a population of 124,435. Incorporated in Kent 1890, the city’s population has doubled 28,893 since 1990, incorporating tens of thousands of new households and businesses. A culturally rich destination, Kent features captivating Kent Traffic Volume neighborhoods, award-winning parks, exceptional school districts and nationally accredited police and fire departments. In recent block to Starbucks years, Kent has experienced impressive economic growth and is ½Coffee nationally known as a prime location for manufacturing. block to Platform Restaurants, Apartments Kent boasts a diverse economic base. Manufacturing, distribution, 1 Cafes & Nightlife warehousing, professional services and retail companies are blocks to Regional 41 2 Justice Center all located here. This includes a growing number of large and well-known companies, like: The Boeing Company’s Integrated blocks to Kent Station Defense Systems, WCP Solutions, Mikron Industries, Oberto 2 Sausage Company, Starbucks Roasting Plant, and Recreation blocks to shopping 2and sushi Equipment, Inc. (REI). 93 Walk Score blocks to AMC The Kent Valley is home to a growing volume of Class-A wired 3 Theater office space. The Kent Valley is the 2nd largest industrial park on blocks to Green the West Coast; 5th in the nation. It is the 3rd largest distribution/ 3 River College warehouse area after New York/New Jersey and LA, and the block to Dwell Ports of Seattle and Tacoma are the 3rd largest container hub in 4Aparments the nation. 9.05% blocks to Justice Population Growth 2016-2021 4 Center

02 Market Overview Market

New Dwell Apartments

The Regional Justice Center

Kent Station Shopping 04

Watch the drone video on YouTube: Green River College Starbucks Coffee https://youtu.be/_AnZ2X57zzs

Bellevue | Seattle | Tacoma 9 nai-psp.com 02 Market Overview

I1 SECOND PLACE J1

I5 J3 P P

J5 I7 J6

J7 G1 K12 K11 K9 K8 K7 C2 G2 J9 J14 K6 C1 G3 J10 D6 G4 K3 K1 K5 G5 4TH J11 D1 E1 E5 1ST W . JAMES STREET D3 A A

VENUE N. H1 VENUE N. RAMSA Y WAY Fireplace E6 I1

SECOND PLACE L4 L1 M5 M3 M1 E9 J1 B3 B2 I5 B1 J3 P KING COUNTY REGIONAL P A7 Fountain AMC Theatres A9 A10

J5 JUSTICE CENTER I7 A5 A15 F1 A TRANSIT S T J6 DWELL AT A14 A3 F3 KENT STATION P A J7 13 A2 F4 C2 G1

K7 TION K12 K11 K9 K8 A12 A1 G2 J9 Skybridge TEMPERANCE ST.. J14 G3 K6 C1 N4 J10 D6 G4 K3 K1 Green River N3 K5 G5 College Entrance 4TH J11 D1 E1 E5 1ST N5 D3 A A

VENUE N. H1 VENUE N. RAMSA Y WAY Fireplace N1 E6P N6 N7 Social Security Administration and FREE COVERED Rose Law Firm Entrance P ARKING L4 L1 M5 M3 M1 E9 P B3 B2 B1 P KING COUNTY REGIONAL A7 Fountain AMC Theatres A9 A10 KentStation.com

JUSTICE CENTER A5 A15 F1 A TRANSIT S T DWELL AT A14 A3 W . JAMES STREET Apparel & AccessoriesF3 Electronics & Entertainment Dining Services KENT STATION P 01 A M1 Chico's AMC Theatres E6 Agave Cocina & Cantina N6 BECU 13 A2 F4 Kent Station Directory Map K5 Christopher & Banks F4 Game Stop E5 Banyan Tree–Thai Cuisine I 5 Coldwell Banker Bain

I1 A12 A1B1 Claire’s Accessories A 9 Games Workshop TION D1 Chipotle Mexican Grill I 7 FedEx Office

SECOND PLACE M5 J.Jill L4 Simply Mac C1 Duke’s Chowder House J9 Gentle Dental J1 L1Sky bridgLOFTe TEMPERANCE S GT. 1 . T-Mobile D6 Extreme Pita J5 H&R Block F1 Johnny Rockets I 1 Harborstone Credit Union N4 A3 Zumiez K12 Verizon Wireless I5 B3 Kigo’s Kitchen A13 Kent Station Chiropractic & Massage Green River J3 N3 C2 Mama02 Stortini’s Restaurant & Bar A 14 Kent Station Family Dentistry P P College Entrance Beauty, Home & Gift Café & Specialty Foods A5 Naked Pizza K9 Portrait Innovations N5 B2 Bath & Body Works E9 Cold Stone Creamery G4 O Pho & Teriyaki J3 Qliance Primary Care

J5 I7 A2 Buds & Blooms Overview Market F3 Cow Chip Cookies J1 Panera Bread N Social Security Admin., suite 401 J6 G5 HairMasters H1 Dilettante Espresso & D3 The Ram Restaurant & Brewery N5 VRA G2 Peridot Nail Salon N1 Social Security Mocha Café N7 Reds Wine Bar J11 WFG P N6 N7 G3 Seattle Sun Tan Administration and FREE COVEREDA7 Jamba Juice K11 Togo’s M3 Windermere J7 K6 William RoseJames Law Hair Firm and Skin Studio K7 See’s Candies N3 Trapper’s Sushi C2 G1 Entrance P ARKING K12 K11 K9 K8 K7 P N1 Wingstop G2 Health & Fitness J9 J14 K6 C1 G3 K8 GNC Educational / Offices J10 D6 G4 P J10 Hand & Stone Massage and Facial Spa K3 K1 K5 G5 J14 Road Runner Sports A12 Green River College 4TH J11 D1 E1 E5 1ST J6 Z-Ultimate Self Defense Studios A10 Kent Station Mgmt Office D3 KentStation.com Dwell at Kent Station Apts A A VENUE N. H1 PUBLIC RESTROOM VENUE N. RAMSA Y WAY Fireplace E6 FAMILY RESTROOM

L4 L1 M5 M3 M1 E9 KENT STATION GIFT CARDS ATM B3 Apparel & Accessories Electronics & Entertainment Dining Services AVAILABLE HERE B2 M1 Chico's AMC Theatres E6 Agave Cocina & Cantina N6 BECU 03 B1 F Game Stop E5 Banyan Tree–Thai Cuisine I 5 Coldwell Banker Bain KING COUNTY REGIONAL K5 Christopher & Banks 4 A7 Fountain B1 Claire’s Accessories AMC Theatres A 9 Games Workshop D1 Chipotle Mexican Grill I 7 FedEx Office A9 A10 M5 J.Jill L4 Simply Mac C1 Duke’s Chowder House J9 Gentle Dental

JUSTICE CENTER A5L1 LOFT G 1 T-Mobile D6 Extreme Pita J5 H&R Block A15 A3 Zumiez F 1 K12 Verizon A TRANSIT S T Wireless F1 Johnny Rockets I 1 Harborstone Credit Union DWELL AT B3 Kigo’s Kitchen A13 Kent Station Chiropractic & Massage A14 A3 Beauty, HomeF3 & Gift C2 Mama Stortini’s Restaurant & Bar A 14 Kent Station Family Dentistry KENT STATION Café & Specialty Foods P A A5 Naked Pizza K9 Portrait Innovations 04 13 A2 F4 B2 Bath & Body Works E9 Cold Stone Creamery G4 O Pho & Teriyaki J3 Qliance Primary Care

A2 Buds & Blooms TION A12 A1 F3 Cow Chip Cookies J1 Panera Bread N Social Security Admin., suite 401 G5 HairMasters Skybridge H1 Dilettante Espresso & D3 The Ram Restaurant & Brewery N5 VRA G2 Peridot Nail Salon TEMPERANCE ST.. Mocha Café N7 Reds Wine Bar J11 WFG N4 G3 Seattle Sun Tan Green River A7 Jamba Juice K11 Togo’s M3 Windermere KN6 3 William James Hair and Skin Studio College Entrance K7 See’s Candies N3 Trapper’s Sushi

N5 N1 Wingstop Health & Fitness 05

K8 GNC N1 Social Security Educational / Offices P N6 N7 J10 Hand &Administration Stone Massage and andFREE Facial COVERED Spa J14 Road RunnerRose Law FirmSports A12 Green River College Entrance P ARKING A10 Kent Station Mgmt Office P J6 Z-Ultimate Self Defense Studios Dwell at Kent Station Apts PUBLIC RESTROOM P KentStation.com FAMILY RESTROOM KENT STATION GIFT CARDS ATM AVAILABLE HERE

Apparel & Accessories Electronics & Entertainment Dining Services

M1 Chico's AMC Theatres E6 Agave Cocina & Cantina N6 BECU K5 Christopher & Banks F4 Game Stop E5 Banyan Tree–Thai Cuisine I 5 Coldwell Banker Bain Bellevue | B 1 SeattleClaire’s Accessories | Tacoma A 9 Games Workshop D1 Chipotle Mexican Grill I 7 FedEx Office 11 M5 J.Jill L4 Simply Mac C1 Duke’s Chowder House J9 Gentle Dental nai-psp.comL1 LOFT G 1 T-Mobile D6 Extreme Pita J5 H&R Block A3 Zumiez K12 Verizon Wireless F1 Johnny Rockets I 1 Harborstone Credit Union B3 Kigo’s Kitchen A13 Kent Station Chiropractic & Massage C2 Mama Stortini’s Restaurant & Bar Beauty, Home & Gift Café & Specialty Foods A14 Kent Station Family Dentistry A5 Naked Pizza K9 Portrait Innovations B2 Bath & Body Works E9 Cold Stone Creamery G4 O Pho & Teriyaki J3 Qliance Primary Care A2 Buds & Blooms F3 Cow Chip Cookies J1 Panera Bread N Social Security Admin., suite 401 G5 HairMasters H1 Dilettante Espresso & D3 The Ram Restaurant & Brewery N5 VRA G2 Peridot Nail Salon Mocha Café N7 Reds Wine Bar J11 WFG G3 Seattle Sun Tan A7 Jamba Juice K11 Togo’s M3 Windermere K6 William James Hair and Skin Studio K7 See’s Candies N3 Trapper’s Sushi

N1 Wingstop Health & Fitness K8 GNC Educational / Offices J10 Hand & Stone Massage and Facial Spa J14 Road Runner Sports A12 Green River College J6 Z-Ultimate Self Defense Studios A10 Kent Station Mgmt Office Dwell at Kent Station Apts PUBLIC RESTROOM

FAMILY RESTROOM

KENT STATION GIFT CARDS ATM AVAILABLE HERE 406 W Meeker 328 W Meeker

407 W Gowe Investment Summary 01

Current Gross Income Use Actual 2019 Rent 02 Current Scheduled Rent: $267,468 Apartments $58,380 2018 Actual Expenses* (95,828) NOI: $171,640

Retail $95,460 Cap Rate (7%) / 0.07 Current Value: $2,452,000 03

Office $113,628 Analysis Investment 2018 Actual Expenses Totals $267,468 Real Estate Tax $28,906 Utilities (W/S/G/E/G) $19,418 Insurance $10,991 Property Managment (5%)* $12,852 Address ID Bldg Size Land Size Year Built Repairs $7,388 Tenant Improvements $10,746 402 W Meeker 982570-0360 7,656 SF 7,774 SF 1920 Miscellaneous $5,527 Total Expenses: $95,828 04 326 W Meeker 982570-0365 6,240 SF 8,699 SF 1920

405 Gowe Street 9825700410 5,325 SF 7,951 SF 1953 / 1998 Value Added Proforma 05 Proforma Rent: $342,799 Totals 19,221 SF 24,424 SF Proforma Reimbursements: + $45,360 Total: $388,159 (25%) ($97,040) $291,119 $2,452,000 Sale Price / $127 PSF Building / $100 PSF Land Cap Rate (7%) / 0.07 Applied Value $4,158,842

*5% Property Management Fee ($12,852) is included in the $95,828. The current owner does not have Professional Management.

Bellevue | Seattle | Tacoma 13 nai-psp.com 03 Investment Analysis

Rent Roll - 326 W Meeker Street 5 Apartments and 2 Retail Stores

Current Tenant Reimbursed Net Current Rent Unit Tenant Type Size (SF) Term Charges Current Rent PSF Mexican 326 W Meeker Retail 1,426 2020 0 $1,325* $0.89 Restaurant 200 328 W Meeker Retail 1,526 12/31/19 $1,400 $0.89 incl.

328 (½) W Meeker 5 Apartments Apartments 2,350 Mis. 0 $4,845 $2.21

Total Monthly Rent: $8,779 Total 2,952 Total Annual Rent: $75,373

$61,105 $16,488 $44,617 7% $812,642 - = ÷ = Annual Income 2018 Actual Expenses NOI Cap Rate Value *Rent will increase to $1,375 on 08/31/2019

03 Analysis Investment

Current Tenant Reimbursed Net Current Rent Unit Tenant Type Size (SF) Term Charges Current Rent PSF Convenient 402 W Meeker Retail 1,698 2020 0 $1,430 $0.84 Store MRSS 04 404 W Meeker* Wu-Siefa Gym Retail 1,755 12/2021 0 $1,400 $0.80

406 W Meeker* Wu-Siefa Gym Retail 1,690 12/2021 0 $1,300 $0.77

406 W Meeker* Wu-Siefa Gym Retail 2,070 12/2021 0 $1,300 $0.63 05

Total Monthly Rent: $5,430 Total 7,213 Total Annual Rent: $65,160

$65,160 $35,992 $29,167 7% $416,671 - = ÷ = Annual Income 2018 Actual Expenses NOI Cap Rate Value *Total current rent is $4,000. Rent will increase to $4,120 in 2020 and to $4,500 in 2021

Bellevue | Seattle | Tacoma 15 nai-psp.com 03 Investment Analysis

Rent Roll - 405-407 W Gowe Street Two Tenant Office Building

Current Tenant Reimbursed Net Current Rent Unit Tenant Type Size (SF) Term Charges Current Rent PSF King County 407 W Gowe* Office 2,754 08/31/2021 0 $4,487 $1.53 Svc Grant 407 W Gowe Valley Optical Office 2,655 01/03/2022 0 $4,982 $1.86 Total Monthly Rent: $9,469 Total 2,655 Total Annual Rent: $113,628

$113,628 $27,040 $86,588 7% $1,263,971 - = ÷ = Annual Income 2018 Actual Expenses NOI Cap Rate Value *$615 NNN included

02 Rent: $58,140 Expenses: ($11,726) Apartment NOI: $46,414 03 Analysis Investment

Proforma Current Proforma Unit Tenant Size Rent Rent PSF Proforma Rent Type Rent PSF Reimbursements Reimbursements

$990 1 Vacant 330 SF $3.00 $990 $3.00 0 45 Studio +40

2 Mauricio 896 SF $1,290 $1.44 $1,971 $2.20 40 45 1 bed 04

$1,050 3 Pietzke 532 SF $2.04 $1,325 $2.40 40 45 1 bed +40 water

$975 05 4 Mendez 332 SF $3.05 $975 $3.05 40 45 1 bed +40

$400 5 Pockard 260 SF $1.53 $793 $3.05 40 45 Studio +20 water

Seller will $6,054/mo $225/mo Totals 2,350 SF guarantee $4,845 160 ($72,648/yr) ($2,700/yr) in rental income

Bellevue | Seattle | Tacoma 17 nai-psp.com 03 Investment Analysis

Average Apartment Rent Comparison Data

98032 Rent Trends Rents are Expected to Rise 5% in 2018 All Rental Studio 1 Bed 2 Bed

June 2018 $1,456 $1,008 $1,307 $1,519 Average Rent in 98032 • All Rentals: $1,456 • Studio: $1,008 Sept 2017 $1,418 $970 $1,249 $1,494 • 1 Bedroom: $1,307 • 2 Bedroom: $1,519

May 2017 $1,445 $1,021 $1,265 $1,514 Average Rent in All Kent • Studio: $1,006 Jan 2017 $1,360 $951 $1,181 $1,431 • 1 Bedroom: $1,260 • 2 Bedroom: $1,485

Sept 2016 $1,327 $899 $1,171 $1,394 98032 Apartment Rent Ranges • $701 - $1,0005% May 2016 $1,328 $890 $1,149 $1,402 • $1,001 - $1,50051% • $1,501 - $2,00043%

Jan 2016 $1,252 $877 $1,113 $1,305

Sept 2015 $1,225 $896 $1,075 $1,287

May 2015 $1,182 $783 $1,023 $1,244

Jan 2015 $1,085 $734 $940 $1,140

Distance Name 1 Bed 2 Bed Studio Unit Range Comments From Porter

Waterford Price per square foot assumes 700SF $1.96 PSF - $2.35 PSF $1,377 - $2208 02 23605 62nd Ave S 1 bedroom size

Signature Point 850 SF No studios available 378 SF + $3.43 550-700 SF 25102 62nd Ave S 940 SF NA $1,299 - $1,989 PSF $2.42 PSF Kent, Wa $1.80 PSF 3 bedroom - 1,300 SF + $1.53 PSF 03 Analysis Investment Arbor Chase 989 SF No studios, no 1 bedrooms None NA $1,193 - $2,310 1615 W Smith Street $1.20 - $1.83 2 + 3 bedrooms only (rough place)

647 SF 725 SF Dwell** Studio price unavailable due to wait- 1/8 mile NA $1,334 - $3,205 443 Ramsay ing list 843 - 851 SF $2.19 - $2.66

Chandler Bay 600 SF 1043 SF NA $1,317 - $2,741 1020 Central Ave N $2.20 - $3.27 $1.67 - $2.24 04

Atrum Older Units 611 SF 6248 S 242nd Point Kent, $1,250 - $2,988 Very dumpy units, poor tenants $1.54 - $1.24 Wa 05 611 SF Atrum Rewooded Units Waiting list, no price $865 - $1,325 Remodeled upgraded units $2.04 - $3.06

Studios - 425 SF Platform 200 Feet $2.99 - $4.03 NA $1,9 - $2,086 1 bedroom - 730 SF 420 W Smith 2 bedrooms - 973 - 1,010 SF

Bellevue | Seattle | Tacoma 19 nai-psp.com Value & 04 Opportunity Development Potential 01

The property owner hired noted architectural firm Freiheit Ho to design a mixed-use development featuring two 02 development options zoned DCE - Downtown Commercial Enterprise:

78 Residential Units OPTION A 8,650 SF of Retail 03 109 Parking Stalls (28 required)

75 Residential Units 04 OPTION B 17,050 SF of Retail 105 Parking Stalls (75 required) Studies Site

Bellevue | Seattle | Tacoma 21 nai-psp.com 04 Site Studies 1st & 2nd Floor Plans - Option A

04 Site Studies Studies Site

Bellevue | Seattle | Tacoma 23 nai-psp.com 04 Site Studies 1st & 2nd Floor Plans - Option B

04 Site Studies Studies Site

Bellevue | Seattle | Tacoma 25 nai-psp.com Confidential Memorandum & Disclaimer

NAI Puget Sound Properties (“Agent”) has been engaged as the exclusive agent for the sale of 303-307 West Meeker Street in Kent, Washington (the “Property”), by the owner of the Property (“Seller”).

The Property is being offered for sale in an “as-is”, “where-is” condition and Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include 05 highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. Neither the enclosed materials nor any information contained herein is to be used for any other purpose or made available to any other person without the express written consent of the Seller. Each recipient, as a perquisite to receiving the enclosed, should be registered with NAI Puget Sound Properties as a “Registered Potential Investor” or as “Buyer’s Agent” for an identified “Registered Potential Investor.” The use of this Offering Memorandum and the information provided herein is subject to the terms, provisions and limitations of the confidentiality agreement furnished by Agent prior to delivery of this Offering Memorandum.

The enclosed materials are being provided solely to facilitate the prospective investor’s own due diligence for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by Agent or Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors as the accuracy or completeness of the information contained herein. Neither the Agent or the Seller shall have liability whatsoever for the accuracy or completeness of the information contained herein or any other written or oral communication or information transmitted or made available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections and conclusions without reliance upon the material contained herein.

Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at 02 any time and for any reason. Seller and Agent each expressly reserves the right, at their sole and absolute discretion, to reject any and all expressions of interest or offerers guarding the Property and/or terminate discussions with any entity at any time, with or without notice. This offering is made subject to omissions, correction or errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any 03 representations or agreements on behalf or Seller.

Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a binding written agreement 04 for the purchase of the Property has been fully executed, delivered and approved by Seller and any conditions to Seller’s obligations thereunder have been satisfied or waived. 05 By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed

materials and their contents are of a highly confidential nature and will be held and treated in the strictest confidence Reports Supportive and shall be returned to Agent or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of Seller or Agent or as otherwise provided in the Confidentiality and/ or Registration Agreement executed and delivered by the recipient(s) to NAI Puget Sound Properties.

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