HOLLYWOOD STATION High Density Urban Location CLICK HERE 24 Hour Fitness Anchored Mixed-Use Investment for PROPERTY 4224 NE Halsey St, Portland, OR VIDEO

HOLLYWOOD STATION High Density Urban Location CLICK HERE 24 Hour Fitness Anchored Mixed-Use Investment FOR PROPERTY 4224 NE Halsey St, Portland, OR VIDEO

$23,510,000 6.75% CAP Rate | $1,586,975 NOI

Listing Brokers: Blake D. Federinko Brandi M. Ho Michael A. Jenkins [email protected] [email protected] [email protected] 360.823.5111 360.823.5112 360.823.5102

While the information provided is not guaranteed it has been obtained from sources we deem reliable. It is provided without any representations, 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. THIS OFFERING PRESENTS the opportunity to acquire a mixed-use investment in the heart of Portland’s Hollywood District. The property is leased to office and retail tenants. The anchor tenant is 24 Hour Fitness, a Super-Sport gym with a spacious layout filled with energy and inspiration and features thousands of square feet of spectacular workout space, complete with premium gym equipment, unmatched amenities and some of the best studio classes around Portland. The property has eight additional tenants and includes a 220-stall parking garage for the added convenience to the building’s customers.

HOLLYWOOD STATION

Page 2 24 Hour Fitness extended their initial lease term at Hollywood Station for an additional 10-Years making a new initial term of +/-16.5-Years. With this location being in 24 Hour Fitness’ Top 5 busiest locations in the country, the lease extension shows their long-term commitment to the site.

167,000 VPD INVESTMENT OVERVIEW

Price | $23,510,000 CAP | 6.75%

Building Size 69,112+/- SqFt

Parking Garage Size 83,814+/- SqFt Parking Spaces 220+/- Year Built 2006

County: Multnomah

Elevator Served Yes

Zoning CM3 - Commercial Mixed Use 3 Lease Type NNN/Gross

Page 4 INVESTMENT OVERVIEW

New 16.5 Year Lease with 24 Hour Fitness

220,000+ Residents within a 3-Mile Radius

Projected 6.26% Increase in Population Density in the Next 5 Years Based on a 3-Mile Radius

High Barriers to Entry

Located in Portland’s Highly Desirable Hollywood District

The Exterior Walls are made of Decorative Brick, Glass Storefronts and Windows

The Structure is made of Concrete & Steel

The Roof is a Flat Built-Up Composition RENT ROLL

Unit Tenant SqFt % OF GLA Lease Term 100 & 24 HOUR FITNESS 48,499 3RD FLOOR 72% 9/1/18 - 1/31/25 2/1/25 - 1/31/30 2/1/30 - 1/31/35 THREE, 5-YEAR OPTIONS 300 & PORTLAND 310 DEVELOPMENT GROUP 3,376 5% 10/1/18 - 9/30/19 10/1/19 - 9/30/20 10/1/20 - 9/30/21 10/1/21 - 9/30/22 320 V2 10/1/22 - 9/30/23

2,299 3.5% 6/1/18 - 5/31/19 325 PACIFIC NW 6/1/19 - 5/31/20 WATERWAYS 1,800 2.7% 8/1/18 - 8/31/18 9/1/18 - 8/31/19 9/1/19 - 8/31/20 9/1/20 - 8/31/21 9/1/21 - 8/31/22 9/1/22 - 8/31/23 9/1/23 - 8/31/24 330 GRIDLEY DENTAL 9/1/24 - 8/31/25 ARTS 2,102 3.2% 2/1/18 - 1/31/19 2/1/19 - 1/31/20 2/1/20 - 1/31/21 2/1/21 - 1/31/22 2/1/22 - 1/31/23 2/1/23 - 1/31/24 335 VACANT 2/1/24 - 1/31/25

340 BLACK DIAMOND 3,670 5.5% -- PHYSICAL THERAPY 2,160 3.2% 9/1/18 - 8/31/19 9/1/19 - 8/31/20 9/1/20 - 8/31/21 9/1/21 - 8/31/22 4204 NE BIBIMBAP HOUSE 9/1/22 - 8/31/23 HALSEY 1,900 2.9% 4/1/16 - 3/30/21 4212 NE CENTURYLINK HALSEY 1,365 2% 6/1/16 - 5/31/21 ONE, 3-YEAR OPTION Page 6 Additional Annual Base Rent Rent Total Rent Rent PSF -- -- $111,719.50 -- $111,719.46 $1,340,634.00 $27.64 $122,891.42 $122,891.40 $1,474,697.00 $30.41 $135,180.58 $135,180,58 $1,622,167.00 $33.45 10% Increase Each Option TBD $7,127.60 $192.47TBD $7,320.07 $87,840.84 $26.02 $7,341.43 TBD $7,341.43 $88,097.16 $26.01 $7,561.67 TBD $7,561.67 $90,740.04 $26.88 $7,788.52 $7,788.52 $93,462.24 $27.68 $8,022.18 $8,022.18 $96,266.16 $28.51 TBD $4,471.55 $131.01 $4,602.56 $55,230.72 $24.02 $4,605.66 -- $4,605.66 $55,267.92 $24.04 -- $4,050.00 TBD $4,050.00 $48,600.00 $27.00 $4,050.00 TBD $4,050.00 $48,600.00 $27.00 $4,171.50 TBD $4,171.50 $50,058.00 $27.81 $4,296.65 TBD $4,296.65 $51,559.80 $28.64 $4,425.54 TBD $4,425.54 $53,106.48 $29.50 $4,558.31 TBD $4,558.31 $54,699.72 $30.39 $4,695.06 $4,695.06 $56,340.72 $31.30 $4,835.91 $4,835.91 $58,030.92 $32.24 TBD $4,928.79 $66.01TBD $4,994.80 $59,937.60 $28.51 $5,076.66 TBD $5,076.66 $60,919.92 $28.98 $5,228.96 TBD $5,228.96 $62,747.52 $29.85 $5,385.83 TBD $5,385.83 $64,629.96 $30.75 $5,547.40 TBD $5,547.40 $66,568.80 $31.67 $5,713.82 $5,713.82 $68,565.84 $32.62 $5,885.24 TBD $5,885.24 $70,622.88 $33.60

$9,175.00 $9,175.00 $110,100.00 $30.00 TBD $4,151.25 $66.22TBD $4,217.47 $50,609.64 $23.43 $4,255.03 TBD $4,255.03 $51,060.36 $23.64 $4,361.41 TBD $4,361.41 $52,336.92 $24.23 $4,470.44 $4,470.44 $53,645.28 $24.84 $4,582.20 -- $4,582.20 $54,986.40 $25.46

$4,275.00 $4,275.00 $51,300.00 $27.00 -- Fair Market -- Fair Market -- -- $3,185.00 $3,185.00 $38,220.00 $28.00 FINANCIAL SUMMARY

Gross Income $1,842,472.80

VACANCY AT 3% (OFFICE USE ONLY)* ($15,055.16) ERESERVESffective AT G.10r PSFoss Income $1,820,506.44($6,911.20) OPERATING EXPENSES

COMMONTAXES AREA MAINTENANCE ($257,273.83) INSURANCE ($29,862.00)

JANITORIAL ($24,821.64) LANDSCAPING ($5,285.74) LIGHTING ($2,476.38) PARKING LOT ($12,842.00) REPAIR & MAINTENANCE ($75,797.44) SECURITY ($68,147.50) GARBAGE ($11,469.04) PROPERTY MANAGEMENT ($39,090.00) UTILITIESTOTAL OPERATING EXPENSES ($697,826.24)($161,751.67) MISC.TENANT REIMBURSEMENT ($9,009.00)

Net Operating Expenses $233,531.30$464,294.94

Net Operating Income $1,586,975.14 CAP Rate 6.75% Sale Price $23,510,000.00

*No vacancy given to 24-Hour Fitness given the primary term of the lease. Page 8 PARKING GARAGE

Hollywood Station includes a 4 story parking garage that consists of 220+/- Parking Spaces, giving plenty of parking for the customers that use the building. HOLLYWOOD STATION FLOOR PLANS

4212 NE Halsey

4204 NE Halsey

1ST FLOOR

2ND FLOOR

Page 10 2ND FLOOR

Suite Suite 320 325 Suite Suite 330 340 Suite 335

Suite 300

3RD FLOOR ABOUT THE HOLLYWOOD DISTRICT

Is a mix of Commercial and Comprised of Residential Real Estate, Approximately 142 but serves primarily as a Acres shopping district.

Annual Rose Festival Junior Parade takes place in the Hollywood district in Home to the Hollywood June. Farmers Market

Page 12 ABOUT THE HOLLYWOOD DISTRICT

HOLLYWOOD/NE 42ND AVE TRANSIT CENTER is a light rail station

in the MAX Light Rail system and is located in the Hollywood District of Portland, Oregon. It is the 11th stop eastbound on the east side MAX main line. It is served by the Blue, Green and Red Lines, of TriMet. It is Is a mix of Commercial and also a transit center (bus station for local buses), served by three TriMet bus routes. Residential Real Estate, but serves primarily as a The transit center is located south of the intersection shopping district. of Northeast 42nd Avenue and Halsey Street. The MAX anstation elevator platform to a pedestrian is situated bridgebetween which Interstate connects 84 andto the a transitUnion Pacific center Railroadbus bays line to the and north is connected and neighborhoods by stairs and to

the south, across the freeway. The platform is separated from the freeway only by the eastbound tracks and a low crash wall, causing the platform level of this station to be somewhat noisy most hours of the day.

The station was located in TriMet fare zone 2 from its opening in 1986 until September 2012, at which time TriMet discontinued all use of zones in its fare structure.

Home to the Hollywood Farmers Market ABOUT ADJACENT PROPERTIES

Laurel 42

4242 NE Halsey Street Multi-Family Project

Laurel 42 is a six story multi-family project that will offer 100 residential units comprised of studios, one-bedroom and two bedroom apartments. Laurel 42 will also have 2,000 sqft of retail and 60 parking spaces with an automated, three-stack, mechanical parking system.

Some of the other features of Laurel 42 include, bike storage, a bike wash station and top floor community room offering views of Downtown Portland. The six story mixed use building is located one block from the Max line in Portland’s Hollywood District. Laurel 42 is targeted to be complete in October of 2018.

Page 14 Providence Office Park

4400 NE Halsey Street Providence Office Park Medical Office Buildings

consists of three buildings (Pop 1, Pop 2 & Pop3). Pop 3 is a two story medical lab building that sits above one level of parking and building services. Pop 2 consists of underground parking, ground floor mixed use tenants and five stories of office administrative space. Pop 2 also features a cafe, conference rooms, credit union, business center and reflection room. An adjacent six tier parking structure built on a radius responds to the surrounding site context.

As of July 2016, Providence Health and Services and St. Joseph Health came together to serve more people. They re now connected by a new parent organization, Providence St. Joseph Health. Together, They have over 100,000 care givers (employees) that serve in 50 hospitals, over 800 clinics and a comprehensive range of health and social services across Alaska, California, Montana, New Mexico, Oregon, Texas and Washington. TENANT SUMMARY

24 Hour Fitness was founded in 1983 by Mark Mastrov and it’s headquartered in San Ramon, California. 24 Hour Fitness is a privately owned and operated fitness center chain headquartered in San Ramon, California. It the world’s largest fitness chain based on memberships and the third in number of clubs behind Gold’s Gym and Fitness First of the UK, operating 420 clubs in 13 states with four million clients. Their motto is “Improving lives through fitness.” For more than 30 years, they have held fast to their mission of helping people improve their lives through fitness. The Hollywood 24 Hour Fitness offers: Cardio Equipment, Club,Circuit Personal Training, Training, Free Weights, Personal Free Viewing WIFI, Full Screens, Sized Pro Basketball Shop, Court, Group Cycling, Group Exercise, Indoor Lap Pool, Kids’

Sauna, Steam Room, Strength Machines, TRX Suspension

V2 Specializes in producing online events for town hall meetings, quarterly wrap-ups, company trainings, and product rollouts for up to 10,000 people using the virtual venue that works for you. They take care of everything from start to finish. V2 simplifies online event production so you people can focus on running their businesses. They offer Virtual Event Management Suite, Registration Services, Webcast Production, Archive Services, Podcast Services and a V2 Certification Portal.

Bibimbap House goes beyond the traditional stone bowl: The restaurant also serves Korean classics like complimentary BiBiM BAP banchan, glass noodle dish jap chae, and kimchi jigae stew, as well as Japanese dishes like teriyaki and sushi. BiBim Bap House House’s original restaurant is down in Salem, and Yelpers in the area like it enough to give it 4.5 stars. The menu has a lot of Korean classics—japchae, mandoo (dumplings), pa jun, bibimbap, Korean Barbecue, and a variety of soups, among other things.

Page 16 TENANT SUMMARY

Portland Development Group is passionate about developing communities in Portland, OR. They construct new homes, remodel old homes, and revitalize properties, making them available to a new generation of buyers. Portland Development Group focuses andexclusively aesthetic on to Portland, their work rather that than supports spreading positive their growth team outand into other areas, they bring an understanding of local needs authenticity.

Black Diamond Physical Therapy is a group of providers recognized as leaders in the fields of sports injury management, orthopedic rehabilitation, clinical education, and research. Their team places the patient at the center of care, focusing on accurate evaluation, comprehensive patient education, open interdisciplinary communication, and targeted research-based interventions. This helps to assure the most complete and rapid recovery possible while making the patient in charge of their own

Gridley Dental Arts has provided personalized dental care to thousands of families. Their patients come from near and far to experience the warm, individualized care they provide. They pride themselves in utilizing the most modern equipment and methods available. In order to provide nothing but the best to their patients, their office uses state-of-the-art technologies in all their procedures.

PNWA is a collaboration of ports, businesses, public agencies and individuals who combine their economic and political strength in support of navigation, energy, trade and economic development throughout the Pacific Northwest. Established as Inland Empire Waterways Association (IEWA) in 1934, PNWA’s first act was to petition President Roosevelt and Congress for funds to secure a navigation lock at Bonneville Dam.

CenturyLink (NYSE: CTL) is the second largest U.S. communications provider to global enterprise customers. With customers in more than 60 countries and an intense focus on the customer experience, CenturyLink strives to be the world’s best networking company by solving customers’ increased demand for reliable and secure connections. PROPERTY PHOTOS

Page 18 SITE PLAN

LAUREL 42 APARTMENTS

HOLLYWOOD STATION

Exit 2

Legend

Parcel Outline: Subject Property: Trash/Recycle: Signage: Flow of traffic: N Ingress/Egress: AERIAL

Downtown Portland

NE Halsey St Vehicles Daily 18,000

Laurel 42

I-84 Subject Property Vehicles Daily 167,000

Additional Surrounding Retailers Providence Office Park Trader Joes Starbucks Hollywood Transit Center Baja Fresh FedEx Providence Medical Center Bank of America Rite Aid Orchards Supply Hardware Grocery Outlet US Bank Columbia River Brewing Whole Foods Miller Paint Hollywood Theater Dollar Tree Killer Burger

Page 20 DEMOGRAPHICS

Average Income 1mi. 3mi. 5mi. Estimated 2017 $126,454 $97,085 $93,471 Projected 2022 $147,730 $110,932 $106,358 Census 2010 $86,869 $62,222 $61,123 Census 2000 $66,084 $50,357 $50,077

Population 1mi. 3mi. 5mi. Estimated 2017 26,364 221,883 465,009 Projected 2022 28,139 235,766 495,108 Census 2010 23,831 198,131 413,975 Census 2000 22,791 190,745 381,784 PORTLAND, OR

Portland, “the City of Roses”, is the largest city in Oregon and the second largest city in the Pacific Northwest after Seattle. It lies about 70 mi from the Pacific Coast on the northern border of the state of Oregon, straddling the Willamette River 12 mi south of its confluence with the Columbia River. Vancouver, Washington (not to be confused with Vancouver, Canada) is a Portland suburb and lies immediately on the other side of the Columbia River. About 50 mi to the east lies majestic Mount Hood, which forms the perfect backdrop for Portland’s skyline. The city is noted for its scenic beauty, great outdoors environment, a large number of micro breweries, and its eco-friendly urban planning policies

The Portland metro area has become a business cluster for athletic and footwear manufacturers. The area is home to the global, North American or U.S. headquarters of Nike, Adidas, Columbia Sportswear, LaCrosse Footwear, Dr. Martens, Li-Ning, Keen, and Hi-Tec Sports. While headquartered elsewhere, Merrell, Amer Sports and Under Armour have design studios and local offices in the Portland area. Portland-based Precision Castparts is one of two Fortune 500 companies headquartered in Oregon, the other being Nike. Other notable Portland-based companies include film animation studio Laika; commercial vehicle manufacturer Daimler Trucks North America; advertising firm Wieden+Kennedy; bankers Umpqua Holdings; and retailers Fred Meyer, New Seasons Market and Storables.

Median Age Gender

AGE 36.7 Years Old Male 49.4% Female 50.6%

Page 22 LARGEST EMPLOYERS IN PORTLAND HOLLYWOOD

300 West 15th Street, Suite 201 Vancouver, WA 98660 360.699.4494