47472828 1818thth AveAve NENE ,Seattle, WAWA

High Performing Asset One Block from University of Campus Collect Income Today, Redevelop in the Future The Offering Jerry Sankey of Newmark is pleased to present this duplex property located at 4728 18th Ave NE in Seattle, WA. The duplex has two units: a seven-bed, two-bath on the upper floor and a three-bed, one-bath on the lower. The property is nestled in the University District Seattle submarket, just one block from the . This asset has proven success as a student rental, having not been vacant in nearly 20 years, and is fully leased through August 2022.

The property is near amenities such as the Burke-Gilman trail, Union and Portage Bays, and is only five miles north of , with convenience to Green Lake Park, Woodland Park Zoo, and Gas Works Park. The location has easy access to Downtown via Interstate 5 and the Link Light Rail station located blocks away at Husky Stadium. In addition to the Husky Stadium station, the new Brooklyn station, also near the property, will be completed this year.

Opportunity for development also exists, as well as the option to purchase as a portfolio along with its sister property located at 4321 9th Ave NE.

2 CONFIDENTIAL OFFERING MEMORANDUM 4728 18th Ave NE

ADDRESS 4728 18th Avenue NE, Seattle, WA 98105

PRICE $2,000,000

Duplex: 7-Bed, 2-Bath and 3-Bed, 1-Bath BUILDING DETAILS Total Bedrooms: 10 Total Baths: 3

PARCEL NUMBER 882390-1672

GROSS RENTS $105,000

NOI $87,300

YEAR BUILT 1915

STORIES 3

PARKING 2 Garage, 2 Tandem, 6 Total

BUILDING SIZE 3,183 SF

PARCEL SIZE 0.09 AC

4728 18th Ave NE

NEWMARK 3 Amenities • One block from UW campus

• Balconies

• Covered porch

• Original built-ins

• Fireplace

• Shared washer and dryer

• Parking includes two garage and two

tandem to equal six total spaces

Construction Detail

FLOORS 3

CONSTRUCTION TYPE Wood Frame

EXTERIOR Cedar Shake

ROOF Composite

FLOORING Carpet, Hardwood, Vinyl

UTILITIES Electric - Seattle City Light

Water/Sewer - Seattle Water Department

4 CONFIDENTIAL OFFERING MEMORANDUM NEWMARK 5 CURRENT LIGHT RAIL SEATTLE CBD PLANNED EXTENSION 2021

PORTAGE BAY

NEW BROOKLYN LIGHT RAIL STATION COMING 2021 UNIVERSITY WAY SHOPPING AND DINING COORIDOR

UNIVERSITY

th BOOK STORE 54,000 STUDENTS 4728 18 Ave NE

WOW BUBBLE TEA

NE 50th St

U DISTRICT 18th Ave NE FARMERS MARKET 1 BLOCK FROM UW CAMPUS, UNIVERSITY WAY SHOPPING AND DINNING COORIDOR Retail Food/Bars NEAR 100’S ◆ Amazon Books ◆ Big Time Brewery ◆ Tea Republik ◆ Apple ◆ Finn MacCool’s Irish House ◆ Mee Sum Pastry OF WALKABLE ◆ Crate and Barrel ◆ MOD Pizza ◆ Shawarma King ◆ Magus Books ◆ Korean Tofu House ◆ Beetle Cafe ◆ Urban Outfitters ◆ Cafe ◆ Flowers Bar RETAILERS AND ◆ Target ◆ T12 Social House ◆ Ugly Mug Cafe ◆ Banana Republic ◆ Tower Cafe ◆ Pho Shizzle ◆ Madewell ◆ Just Burgers ◆ Chipotle DINING6 CONFIDENTIAL OFFERING MEMORANDUM Investment Highlights

HIGH PERFORMING ASSET LAKE UNION Located one block to the University of Washington (UW), this property sits amongst the best rental pools in the state of Washington. It has not been vacant in 20 years. In addition, the current lease does not expire until August 2022 meaning a fully stabilized, income producing asset for the next year and a half.

PORTFOLIO OPPORTUNITY

th th This asset may be combined with its sister property located at 4321 9 Ave NE. The 9 Ave asset is One half-

mile West, another perfect student housing opportunity featuring an eight-bedroom, four-and-a-half-bath UNIVERSITY property.

REDEVELOPMENT OPPORTUNITY The property is zoned LR3-(M), which can accommodate a 33-unit lowrise multifamily property.

WAY FANTASTIC TRANSIT ACCESS SHOPPING The property has fantastic multimodal access. Located a few blocks from the University Way and 50th Avenue Bus Station, a mile from the Husky Link Light Rail station on the UW campus, it will also be just blocks from the new Brooklyn Light Rail station set to open in 2021. The location also has immediate major freeway access to Interstate 5, the major North-South thoroughfare providing quick access to downtown Seattle and Sea-Tac

AND International Airport.

DINING STEPS FROM BEAUTIFUL BURKE-GILMAN TRAIL (BGT) NE 50th St The Burke-Gilman Trail runs more than 20 miles passing through the UW campus. It is King County’s best- known regional trail, and is highly popular with cyclists, joggers, skaters and strollers. It is also an important COORIDOR non-motorized route for weekday bicycle commuters between Seattle and the Eastside. The trail provides great access and views of the Ship Canal, Lake Union, Seattle neighborhoods, suburban cities, Lake Washington, and points east via other regional trails.

TRAVEL TIMES (BY CAR) OUTDOOR HIGH-END SHOPPING This property is close to University Village, Seattle’s only outdoor lifestyle shopping center. Shops include many 8 MINUTES Space Needle boutique retailers in addition to the Apple store, Microsoft, Nike, Banana Republic, Bartell’s, Lululemon, and many more. 25 MINUTES Seattle-Tacoma SEATTLE RANKINGS International Airport Seattle is considered one of the best investment markets for multifamily real estate in the country. According to Multifamily Executive Magazine, “The market is doing quite well across the board,” says Todd Britsch, 9 MINUTES Metrostudy regional director for the region. Housing analysts predict the area will see continued job growth Downtown Seattle and good in-migration through 2025. Seattle is ranked as the #1 fastest growing large city in the US and was the #2 ranked state for GDP growth in 2019 at 3.8%. NEWMARK 7 Portfolio Opportunity

Pair this property with its sister property located at 4321 9th Ave NE! One half-mile West is another perfect student housing opportunity featuring an eight-bedroom, four-and-a-half-bath property. For more information on this property, click the image below.

4321 9th Avenue NE ADDRESS Seattle, WA 98105

PARCEL NUMBER 409230-0190 th PRICE $1,295,000 4321 9 Avenue NE Seattle, WA

GROSS RENTS $67,200 EIGHT-BEDROOM STUDENT HOUSING INVESTMENT OPPORTUNITY BLOCKS FROM UNIVERSITY OF WASHINGTON NOI $53,400

YEAR BUILT 2002

NUMBER OF BEDS 8-bedroom, 4.5-bath

STORIES 3

BUILDING SIZE 2,390 SF

PARCEL SIZE 0.06 AC

8 CONFIDENTIAL OFFERING MEMORANDUM Development Opportunity

The property is zoned LR3-(M), or low-rise multifamily. Investors have the opportunity to collect income through August 2022 with option to redevelop in the future. Housing Types: Cottage Housing Rowhouse Townhouse Apartments Development standards apply according to the following housing types: cottage housing, rowhouses, townhouses or apartments.

Accessory Dwelling Units (ADUs) are allowed with single-family dwelling units, rowhouses and townhouses in LR zones, subject to specific development stan- dards per 23.45.545.I. ADUs do not count towards the density limit. See SMC 23.84A.032 for complete housing type definitions.

Individual cottage house structures are arranged around a Rowhouses are attached side by side along common walls. Townhouses are attached along common walls and occupy the Multifamily housing that is not cottage housing, rowhouses, or town- common open space; 950 square feet (sf) is the maximum size Each rowhouse directly faces the street with no other principal space from the ground to the roof. Units can not be stacked. houses is considered apartments. Apartment units may be stacked. allowed for each cottage. housing units behind the rowhouses. Rowhouses occupy the Townhouses may be located behind other townhouses as seen space from the ground to the roof. Units can not be stacked. from the street. LR1 MHA Suffix No MHA Suffix MHA Suffix No MHA Suffix MHA Suffix No MHA Suffix MHA Suffix No MHA Suffix Floor Area Ratio 1.3 1.0 1.3 1.0 1.3 1.0 1.3 1.0 Lowrise 1 (FAR) Areas characterized by low-density, Density No limit 1 unit / 1,300 sf No limit; 1 unit / 1,300 sf on interior lots less than 1 unit / 1,300 sf No limit2 1 unit / 1,300 sf2 small-scale multifamily housing 3,000 sf types, which are similar in character Building Height3 22' 30' 30' 30' to single family zones. Most appropri- 1 Building Setbacks Front 7' ave., 5' min. Front 5' min. Front 7' ave., 5' min. Front 5' min. ate outside of Growth Areas . Rear 0' w/ alley; 7' w/ no alley Rear 0' w/ alley; 7' ave., 5' min w/ no alley Rear 7' ave., 5' min. Rear 10' w/ alley; 15' min w/ no alley Side 5' min. Side 0' where abutting another rowhouse; Side 5' min.; 7' ave., 5' min. for facades Side 5' min.; 7' ave., 5' min. for facades 3.5' or 5' when abutting a SF zone greater than 40' greater than 40' Building Width No limit No limit 60' 45' Façade Length The maximum combined length of all portions of façades within 15' of a lot line that is neither a rear, street or alley lot line shall not exceed 65% percent of the length of that lot line, or 40' for a rowhouse development.

MHA Suffix No MHA Suffix MHA Suffix No MHA Suffix MHA Suffix No MHA Suffix MHA Suffix No MHA Suffix Growth Area Outside Growth Area Outside Growth Area Outside Growth Area Outside Growth Area Outside Growth Area Outside Growth Area Outside Growth Area Outside LR2 Growth Area Growth Area Growth Area Growth Area Growth Area Growth Area Growth Area Growth Area Floor Area Ratio 1.4 1.1 1.4 1.1 1.4 1.1 1.4; 1.6 with specific ame- 1.1 Lowrise 2 (FAR) nity area requirements Areas characterized by multifamily Density No limit 1 unit / 1,300 sf No limit 1 unit / 1,300 sf No limit 1 unit / 1,300 sf No limit 1 unit / 1,300 sf housing types in existing small-scale Building Height3 22' 40' 30' 40' 30' 40' 30' multifamily neighborhoods with arte- rial streets. Most appropriate within Building Setbacks Same as LR1 with additional upper-level setback requirements based on height limit and proximity to a single family zone per SMC 23.45.518. Growth Areas1. Building Width No limit No limit 90' 90' Façade Length Same as LR1 Same as LR1 Same as LR1 Same as LR1 Zoning Description

MHA Suffix No MHA Suffix MHA Suffix No MHA Suffix MHA Suffix No MHA Suffix MHA Suffix No MHA Suffix Growth Area Outside Growth Area Outside Growth Area Outside Growth Area Outside Growth Area Outside Growth Area Outside Growth Area Outside Growth Area Outside LR3 Growth Area Growth Area Growth Area Growth Area Growth Area Growth Area Growth Area Growth Area Floor Area Ratio 2.3 1.8 1.2 1.2 2.3 1.8 1.2 1.2 2.3 1.8 1.2 1.2 2.3 1.8 1.5 1.3 Lowrise 3 (FAR) Areas characterized by multifamily Density No limit 1 unit / 1,300 sf No limit 1 unit / 1,300 sf No limit 1 unit / 1,300 sf No limit 1 unit / 800 sf housing types in existing moderate- Building Height3 22' 50' 40' 30' 50' 40' 30' 50' 40' 40' 30' scale multifamily neighborhoods with Building Setbacks Same as LR1 with additional upper-level setback requirements based on height limit and proximity to a single family zone per SMC 23.45.518. good transit service along arterial street and near commercial zones. Building Width No limit No limit 150' 120' 150' 120' 150' 120' 150' 120' Most appropriate within Growth Façade Length Same as LR1 Same as LR1 Same as LR1 Same as LR1 Areas1. *Buyer to verify development opportunity

1 Growth Areas include urban centers, urban villages, and station area overlay districts. 2 Family-sized housing requirement applies per SMC 23.45.512.B NEWMARK 9 3 Additional height allowances apply per SMC 23.45.514. Submarket Spotlight: University “U” District

Surrounding the University of Washington, the University District is an eclectic mix of urban shopping areas; historic homes and architecture; and great cafes, pubs, restaurants, and theaters. The “U District” has a youthful and relaxed feel with lots of dining and shopping deals to take advantage of.

Much of the charm of the U District can be found in simply strolling the neighborhood. The University of Washington’s gorgeous grounds include historic buildings, gardens, sprawling green spaces and, in spring, blossoming cherry trees. “The Ave,” (University Way) is a popular gathering place, with lots of indie eateries and funky shops. And on 17th Avenue NE, a tree-lined lane known as Greek Row, passersby can admire the stately mansions that house UWs fraternities and sororities.

Attractions include the stellar collections at the Henry Art Gallery (University of Washington) and Burke Museum (1413 NE 45th St). There are also acclaimed dance, theater and music performances at Meany Hall.

Those looking for outdoor pursuits will feel right at home among the students who can often be found kayaking on Lake Union or Portage Bay, biking the Burke-Gilman trail or catching a football game at Husky Stadium, known for its unique tailgating parties (some tailgaters arrive by yacht rather than by car).

10 CONFIDENTIAL OFFERING MEMORANDUM 1.5 #1 Blocks 54,000 Most from Campus Students Innovative Public University in the World, Reuters 2019

FAST FACTS

• 54,000 Students • 0.5 Miles / 2-Minute Drive or 10-Minute Walk to Campus • #1 Most Innovative Public University in the World, Reuters 2019 • Ranked #14 in the World 2018 Academic Ranking of World Universities • UW is a top five employer in the state, supporting over 79,000 jobs, with an annual economic impact of $12.5B. • In 2016, the UW approved a $2.4 billion capital projects budget to be implemented by 2023, replacing existing infrastructure and adding 2,000,000 gross SF their vari- ous campuses. • In 2019, UW has received over $360M of private investment from companies like Bill and Melinda Gates Foundation, Microsoft, , Allen Institute, Amazon and Zillow. NEWMARK 11 Demographics

1 MILE 3 MILE 5 MILE POPULATION 2020 Total 50,295 235,100 554,895 $97K 2025 Projection 54,074 250,760 605,486 AVERAGE HOUSEHOLD INCOME Growth 2020-2025 1.46% 1.30% 1.76% WITHIN A ONE MILE RADIUS Median Age 23.9 34.3 37.0 HOUSEHOLDS 2020 Total 17,616 105,946 274,310 2025 Projection 19,349 113,121 300,833 Growth 2020-2025 1.89% 1.32% 1.86% Owner Occupied 29.1% 47.1% 43.3% $1M Renter Occupied 66.9% 49.2% 52.1% AVERAGE HOME VALUE IN A THREE Avg HH Size 2.13 2.07 1.93 MILE RADIUS Avg HH Income $96,893 $152,698 $140,178 HOUSING Median Home Value $764,070 $833,251 $785,954 EDUCATION Bachelor's Degree 38.7% 40.5% 39.3% Graduate/Professional Degree 36.2% 37.7% 31.7% $557M INCOME SPENT ON ENTERTAINMENT AND $15,000 - $24,999 8.1% 3.7% 4.8% RECREATION IN A THREE MILE $25,000 - $34,999 7.1% 4.2% 5.0% RADIUS $35,000 - $49,999 10.0% 7.2% 8.0% $50,000 - $74,999 11.8% 12.5% 12.9% $75,000 - $99,999 6.6% 10.7% 11.2% $100,000 - $149,999 12.7% 19.1% 18.2% $150,000 - $199,999 6.8% 12.9% 11.7% $200,000+ 12.6% 22.5% 19.9%

12 CONFIDENTIAL OFFERING MEMORANDUM Seattle Market At-a-Glance

#1 4.0M BEST STATE IN U.S. MSA POPULATION (Second time awardee) (Gaining about 1,100 People per Week Since 2010) Source: U.S. News and World Report Source: U.S. Census Bureau

#1 44% RANKED REAL ESTATE MARKET FOR INVESTMENT OF RESIDENTS HOLD A BACHELOR’S DEGREE OR Source: ULI 2019 Emerging Trends Report HIGHER (One-Third More Than The National Average) Source: U.S. Census Bureau #1 #2 OF TOP 10 CITIES WHERE MILLENNIALS ARE MOVING RANKED STATE FOR GDP GROWTH Source: SmartAsset (3.8%; 2019) Source: bea.gov

11 OF THE FORTUNE 500 COMPANIES ARE HEADQUARTERED IN PUGET SOUND

NEWMARK 13 Seattle Area and Market Overview

The Puget Sound region is one of the most vibrant economies in the United States and has long been recognized as the business, financial, and cultural center of the Pacific Northwest.

The Region Possesses a Critical Mass of Well-Capitalized and Innovative Companies that are Global Leaders. With industries such as aerospace, biotechnology, global health, research, software, technology, and wireless services, leading companies and organizations draw upon the area’s highly educated and productive workforce. This includes companies such as Amazon, Microsoft, Facebook, Google, The Boeing Company, Expedia, F5 Networks, Nordstrom, REI, Starbucks, and Nintendo USA to name a few.

Enhancing the capital base of the region is The Bill and Melinda Gates Foundation with an endowment exceeding $40 billion. These innovation, research and philanthropic giants paired with a highly skilled workforce provide the opportunity for continued research and business activity at critical institutions such as the Fred Hutchinson Cancer Research Center, Center for Infectious Disease Research, Institute for Systems Biology, PATH, Allen Institute for Brain Science, UW Medicine Research, Seattle Genetics, Juno and Seattle Children’s Research Institute. Driven by a dynamic and expanding industry base, low unemployment, a highly educated population, and significant absorption, the Puget Sound Region stands as one of the healthiest markets in the nation.

Consistently Outperforming National Metrics SEATTLE RANKS FIRST IN GROWTH THIS DECADE

Seattle Metro United States Since 2010, Seattle’s population 6.9% YOY GDP GROWTH (2018) 2.3% has increased by 18.7%, the fastest growth rate among the 50 largest 4.7% YOY JOB GROWTH (NOV 2019) 1.4% U.S. cities.

14 CONFIDENTIAL OFFERING MEMORANDUM Home to the Most Valuable Companies in the World

A recent article in Forbes lists both Amazon and Microsoft as two of the most valuable companies in the world as of 2020. The Seattle tech sector is responsible for an estimated $96.3 billion in economic activity – the fourth largest amount among metro areas. • 26.2% of Seattle’s economy is contributed to the tech industry • Boeing is the largest employer is the state of Washington with over 80,000 employees • 313,00 net tech employment in Seattle Metro • 11 Fortune 500 companies are headquartered in the Puget Sound Metro

WORLD HEADQUARTERS $38B $1.70T Invested in Puget August 2020 Sound Region 26.4% 53,000 Revenue Growth from Seattle-Based 2019 to 2020 Employees 10,346 Tech Companies in the State WORLD HEADQUARTERS

$1.73T August 2020 300,800 Creation of New Jobs 355K SF 53,500 Seattle MSA 2010-2020 Occupied in Seattle/ Employees Redmond Metro

NEWMARK 15 4728 18th Ave NE Seattle, WA

Investment Sales Team:

Jerry Sankey Marty Leith Dylan Roeter Director Executive Managing Director Associate t 206-407-0224 t 206-851-8270 t 206-462-4727 [email protected] [email protected] [email protected]

Debt and Structured Finance:

Jim Rice Managing Director t 503-972-5519 [email protected]

OFFER SUBMISSION Offers should be presented in the form of a non-binding Letter of Intent, spelling out the significant terms and conditions of purchaser’s offer, including, but not limited to (1) asset pricing, (2) due diligence and closing time frame, (3) earnest money deposit, (4) a description of the debt/equity structure, and (5) qualifications to close. The purchase terms shall require all cash to be paid at closing. Offers should be delivered to the attention of Jerry Sankey at the email address or street address listed above.