MT. BAKER TRANSIT ORIENTED DEVELOPMENT SITE 3109 & 3111 RAINIER AVE S, , WA 98144 OFFERING MEMORANDUM

SEATTLE CBD (2.5 MILES)

MT. BAKER STATION

3109 RAINIER AVE S 3111 RAINIER MARTIN LUTHER KING JR WAY FRANKLIN AVE S PEDESTRIAN BRIDGE HIGH SCHOOL

RAINIER AVE S

JON BOCKMAN TAYLOR NUCCITELLI 1218 Third Avenue VINCE VONADA P// 206.456.2560 P// 206.787.9049 Suite 2200 P// 206.718.0047 [email protected] [email protected] Seattle, WA 98101 [email protected] TABLE OF CONTENTS

TABLE OF CONTENTS

// INVESTMENT SUMMARY PAGE// 3

// SITE OVERVIEW PAGE// 4

// DEVELOPMENT PLANS PAGE// 7

// MARKET OVERVIEW PAGE// 11

// DEMOGRAPHICS PAGE// 13

2 // MT. BAKER TRANSIT ORIENTED DEVELOPMENT SITE THE OFFERING

ORION Commercial Partners is excited to offer for sale the Mt. Baker Transit Oriented Development Site, located at 3109 & 3111 Rainier Ave S in Seattle, WA. With the property’s close proximity to the Station and Interstate 90 makes it an ideal location.

Located in the heart of Rainier Valley’s gentrification, a short distance to , high traffic counts, and flexible zoning makes this site a perfect redevelopment opportunity.

3109 & 3111 RAINIER AVE S, Address INVESTMENT SEATTLE, WA 98144

$1,799,000 3109 Rainier Ave S SUMMARY Offering Price $3,638,332 $1,839,332 3111 Rainier Ave S

Price Per Square Foot (Land) $187.00

1,134 SF 3109 Rainier Ave S Building(s) Size 3,354 SF 2,220 SF 3111 Rainier Ave S 9,612 SF 3109 Rainier Ave S Total Land Area 19,448 SF 9,836 SF 3111 Rainier Ave S

505830-0125 3109 Rainier Ave S Parcel Numbers 505830-0135 3111 Rainier Ave S

Zoning SM-NR-85

Year Built// 1978// 1984 3109 Rainier Ave S Remodeled 1961// 1980 3111 Rainier Ave S

3 // MT. BAKER TRANSIT ORIENTED DEVELOPMENT SITE Tenants are unaware of sale, please do not disturb. 9,836 SF 9,612 SF SITE 3111 Parcel 3109 Parcel OVERVIEW

URBAN VILLAGE SM-NR-85 ZONING A zone that provides for a wide range of uses, to encourage the development of the area into a mixed-use neighborhood.

STRATEGIC LOCATION Just 175 feet from Sound Transit Mt. Baker Light Rail Station, the subject property is in the heart of Mt. Baker Town Center, with numerous city improvements planned. This location is very walkable, most errands can be accomplished on foot with a Walking Score® of 88 but also has an excellent Transit Score® of 70.

STRONG DEMOGRAPHICS Located within the Seattle City limits, there are over 22,359 people living within a 1-mile radius of the subject property and over 140,456 people within a 3-mile radius. The 2017 average household income within a mile radius of the property is over $80,000.

4 // MT. BAKER TRANSIT ORIENTED DEVELOPMENT SITE Tenants are unaware of sale, please do not disturb. HIGHLIGHTS & FEATURES

SITE

SUBJECT OVERVIEW PROPERTIES

Excellent visibility and access from High weekday traffic counts MLK Way or Rainier Ave S

Perfect redevelopment To Downtown Seattle: 10 minute drive or opportunity 16 minutes via light rail

175 Feet from Sound Transit To Sea-Tac International Airport: 20 Mt. Baker Light Rail Station minute drive or 25 minutes via light rail

5 // MT. BAKER TRANSIT ORIENTED DEVELOPMENT SITE SITE OVERVIEW PROPERTY PHOTOS

SOUND SUBJECT MARTIN LUTHER KING JR WAY PROPERTIES T R A N S IT L IG H T R A IL

SUBJECT PROPERTIES PEDESTRIAN BRIDGE RAINIER AVE S

FRANKLIN HIGH SCHOOL

6 // MT. BAKER TRANSIT ORIENTED DEVELOPMENT SITE Town Center - Design Guidelines

NORTH RAINIER HUB VILLAGE & North Rainier Hub UrbanMOUNT Village and BAKER Mount Baker CENTER Town Center

DEVELOPMENT PLANS

SUBJECT PROPERTIES

AREA WHERE GUIDELINES APPLY URBAN VILLAGE BOUNDARY (Mount Baker Station Area Overlay and Town Center) Area where guidelines apply Urban Village Boundary (Mount Baker Station Area Overlay and Town Center) 7 // MT. BAKER TRANSIT ORIENTED DEVELOPMENT SITE

Note: Design Review does not apply to all zones. See Citywide Guidelines for details. Additionally, zoning areas on this map are for general reference only.

4 Introduction FOR SALE

DEVELOPMENTMount Baker PLANS Transit Oriented Development Site PRELIMINARY 2015 CAPACITY STUDY FOR DEVELOPMENT3111 Rainier Ave POTENTIAL S, Seattle, WA 98144

We have evaluated the potential number of residential units, commercial space area, and parking counts for both individual buildings on separate properties as well as one larger building on your combined properties.

ASSUMPTIONS, SITE CONSTRAINTS, & OPPORTUNITIES The following factors were considered when estimating the development potential of your properties:

• Building Height and Number of Stories: Although the allowable building height per the Seattle Land Use Code is 85 feet, the most likely building construction type for residential buildings will limit the height to 70 feet. This would translate to 5 stories of wood-framed residential units over a ground floor with concrete construction consisting of commercial and service space. • Floor Area Ratio (FAR): The maximum allowable floor area ratio for this zone is 6.0. However, site configuration, setback requirements, and building construction type make it unlikely that the building will reach this maximum FAR.

• Setback Requirement: A horizontal setback of 2 feet is required for every additional 1 foot in height above 45 feet along Rainier Avenue South. We assume this translates to a Sample of potential development for subject property 10-foot setback at the top 2 floors. • Residential Units: We have assumed an average unit size SCHEME COMMERCIAL PARKING GROSS APPROX. NET # OF NET of 675-725 sf. With a smaller average size more units could AREA (SF) COUNT SQ. FT., EFFICIENCY, SQ. FT., RESID. SF PER be possible, while conversely a larger average size would RESID. RESID. RESID. UNITS RESID. translate to fewer units. LEVELS LEVELS LEVELS UNIT • Commercial Space: We have assumed that commercial space FEATURES:3109 ONLY 4,500 15 41,012 85% 34,860 48 726 would be located on the ground floor facing Rainier Avenue South and South MLK Way, with an average depth of 30 feetPrice $1,390,000 ($141s/f) from property line. 3111 ONLY 3,000 16 35,920 85% 30,532 44 690  9,836s/f land size in Urban Village zoned SM-85 • Parking: While there are no parking requirements per the Land SUBTOTAL 7,500 31 76,932 85% 65,392 92 710 Use Code. Our experience with past projects suggests  that250 feet from Sound Transit Mt Baker Light Rail Station market demand will require 1 level of below-grade parking. 3109 & 3111 Initial Massing Study shows9,100 44 apartment37 units80,504 @ 690 s/f each,90% with 72,453 105 690 3,000COMBINED s/f of commercial space and 16 parking stalls PRELIMINARY BUILDING CALCULATIONS  2015 local rents for new apartments $2.38s/f, low 2.9% vacancy rate -per Dupree & The table summarizes estimated capacities of areas of different Scott,uses S. King Co. Disclaimers: These calculations are preliminary and conceptual. They are based on and residential unit counts. We have provided numbers for each of the limited site information as no survey was provided. Floor plan layouts, beyond the scope  two individual properties as a stand-alone development in addition In heart of Mt. Baker Town Center,of this with study, numerouswill determine developmentCity improvements potential with planned more accuracy. Owner program to numbers for a development on the two combined properties.  High A Walkscore of 84, most errandsrequirements, can be utility accomplished requirements, ontransportation foot requirements, and Design Review development on the combined properties will have more potential  Tenants for are unaware of sale, pleaserequirements do not all coulddisturb potentially affect the development capacity of these properties. parking, commercial area, and residential unit count than two stand- alone buildings due to efficiencies with building lobbies, vertical CORE COMMERCIAL PROPERTIES, INC. circulation, parking entries, and other infrastructure. 10 East Allison Street Seattle, WA 98102 For Additional Information corecommercialproperties .com Please Contact: Vince Vonada 206-718-0047 [email protected] The information herein comes from sources deemed reliable but has not been independently verified by CORE Commercial Properties, Inc.. No warranty or representation, expressed or implied is made as to the accuracy of the information herein, and it is submitted subject to errors, omissions, change of price, rental, or other conditions, withdrawal without notice, and to any special listing conditions, imposed by our principals.

MT. BAKER CENTER CONCEPT Mount Baker Town Center - Design Guidelines AREA IMPROVEMENT PLANS

Hanford Steps Introduction

3109 & 3111 RAINIER AVE S, SEATTLE WA 98144

Source: Seattle Department of Construction & Inspection 8

9 // MT. BAKER TRANSIT ORIENTED DEVELOPMENT SITE In 2015, we worked with neighbors and built on past Center to take root and flourish. The concept below plans to come up with a concept to reconfigure the is a result of early efforts. In addition to prioritizing intersection of Rainier Ave S and Martin Luther walking and biking, we want to maintain transit King, Jr. Way. We want to work with the community and freight reliability and create more predictable to transform the Mt. Baker station area into a safer conditions for people driving. Over the next few years and comfortable place for people to walk, bike, and we’ll do further traffic analysis, design the project make transit connections; and for the Mt. Baker Town and work on securing funding.

AREA ACCESSIBILITY PLANS

NEAR TERM PROJECTS: PHASE 1 1 Shorten existing crossing distances and increase signal waiting area by adding sidewalk area

2 Increase sidewalk width and perform repairs 3 Increase crosswalk width from 10’ to 20’ 4 Increase sidewalk width from 8’ to 12’ 5 Change north lane of Mt. Baker Blvd. to walk/bike only SUBJECT 6 Prohibit right turn heading north onto PROPERTIES MLK, JR. Way from Rainier Ave. S during red light

7 Single left turn lane only heading south from MLK, Jr Way S. onto Rainier Ave S. 8 Replace lover Hanford Stairs and provide better lighting 9 Clean and repair pedestrian bridge

Activate Light Rail Station environment with more programmed events, market, 10 2 bike share, outdoor concerts and other activities NEIGHBORHOOD IMPROVEMENT PLANS • Roadway modifications - (separation of Rainier Ave S and MLK Jr Way S) 7 • Connected bicycle network with protected bike lanes 10 • Re-located transit center 1 • Improvements to Hanford Stairs 4 • Landscaping 3 6 5 • Lighting • Traffic signal modifications • Utility work • Improve traffic signaling to shorten walk waiting time • Clean-up and organize signs 3 SUBJECT PROPERTIES 9 • Repair and addition of sidewalks where missing • Landscape maintenance • Manage parking 8

Map and information sources:

10 // MT. BAKER TRANSIT ORIENTED DEVELOPMENT SITE ABOUT RAINIER VALLEY

Seattle’s South End district stretches along the east side of Interstate 5, made up of several neighborhoods including Rainier Valley, Rainier Beach, Mount Baker, Columbia City, and Hillman City. Rainier Valley has been listed by the Census Bureau as America’s most diverse zip code. This ranking came as no surprise since the neighborhood is known for its mixed population that includes speakers of over 50 different languages. This combination leads to an abundance of diverse foods, music, art, and culture.

In 2005, former Seattle Mayor Greg Nickels proposed his “action agenda” for the area, focusing on Rainier Valley. Nickels set aside a budget of $95 million for affordable housing, INVESTMENT education, and parks with the idea that the -then new- light rail’s line through the South MARKET End would boost business and population growth. The Accessible Mt. Baker Integrated Multimodal Plan completed planning in 2015 with the SUMMARYOVERVIEW project’s cost range at $20 - 24 million. The focus on the surroundings of the Mt. Baker light rail station aims to turn the auto-oriented space into a friendlier environment for pedestrians and commuters. Connected by the light rail, workers, and residents can easily navigate south to the Sea-Tac International Airport and north up to downtown Seattle, Capitol Hill, and to the University of . This service will extend into Bellevue and Redmond in 2023 when the East Link is expected to begin operating.

2017 was another big funding year for Seattle’s South End. The Rainier Valley Community Development Fund (RVCDF) announced that they had received an award from the US Treasury’s Community Development Financial Institution Fund (CDFI Fund) for $776,500 to be put toward the growth of local small businesses, focusing on those owned by women and minorities. Seattle Mayor Jenny Durkan announced $100 million in affordable housing investments for both long-term rental houses and affordable homeownership.

This flourishing area includes several popular community spots such as the 300-acre , the 52-acre , the 20-acre Japanese gardens at and the Chief Sealth Trail a 3.6 mile running from Beacon Hill through Rainier Valley.

Beyond the parks, Columbia City boasts youthful growth with new restaurants, bars, and high-end shops along Rainier Ave S. There is also the historic Columbia City Theatre which now thrives as a concert venue and bourbon bar.

Every year the Rainier Valley Heritage Parade and Festival show off the diversity of all of Seattle’s South End in a spectacular display of music, food, drink, street sports, outdoor games, a car show and more. Rainier Valley is the true melting pot of Seattle.

11 // MT. BAKER TRANSIT ORIENTED DEVELOPMENT SITE ABOUT SEATTLE

Seattle, Washington is a coastal seaport city in King County situated on a narrow isthmus between Puget Sound and Lake Washington, about 100 miles (160km) south of the Canada– United States border. With an estimated 704,352 residents as of 2016, Seattle is the largest city in both the State of Washington and the Pacific Northwest region of North America. The fastest-growing big city in the country, according to population data released in May of 2017 by the U.S. Census Bureau. From July 1, 2015, to July 1, 2016, Seattle had a net gain of nearly 21,000 people — 57 a day, on average. That pencils out to a 3.1% population increase for the one-year period. Among the 50 most populous cities in the nation, that’s easily the INVESTMENT fastest rate of growth. MARKET Seattle is the region’s commercial and transportation hub and the center for manufacturing, trade, and finance. The Port of Seattle, which also operates Seattle–Tacoma International Airport, is a major gateway for trade with Asia and cruises to Alaska and is the 8th largest SUMMARYOVERVIEW port in the United States in terms of container capacity. Its important diversified industries include aircraft, lumber and forest products, fishing, high technology, food processing, boat building, machinery, fabricated metals, chemicals, pharmaceuticals, and apparel.

The city’s gross metropolitan product was $231 billion in 2010, making it the 11th largest metropolitan economy in the United States. Though it was also affected by the recession, Seattle has retained a comparatively strong economy, and remains a hotbed for start-up businesses, especially in green building and clean technologies: it was ranked as America’s No. 1 “smarter city” based on its government policies and green economy.

Very large companies dominate the business landscape in the “Emerald City”. Four companies on the 2013 Fortune 500 list of the United States’ largest companies, based on total revenue, are headquartered in Seattle: Internet retailer Amazon.com, coffee chain Starbucks, department store Nordstrom, and freight forwarder Expeditors International of Washington. Other Fortune 500 companies popularly associated with Seattle are based in nearby Puget Sound cities. Boeing has large aircraft manufacturing plants in Everett and Renton, which makes it the largest private employer in the Seattle metropolitan area. Warehouse club chain Costco, the largest retail company in Washington, is based in Issaquah. Microsoft is located in Redmond. Weyerhaeuser, the forest products company (#363), is based in Federal Way. Finally, Bellevue is home to truck manufacturer Paccar (#168). Other major companies in the area include Nintendo of America in Redmond, T-Mobile US in Bellevue, Expedia Inc. in Bellevue and Providence Health & Services — the state’s largest health care system and fifth largest employer — in Renton. The city has a reputation for heavy coffee consumption; coffee companies founded or based in Seattle include Starbucks, Seattle’s Best Coffee, and Tully’s. There are also many successful independent artisanal espresso roasters and cafés.

The “Emerald City” offers residents a pace of life that can be either relaxed or fast-paced and entrepreneurial.

12 // MT. BAKER TRANSIT ORIENTED DEVELOPMENT SITE DEMOGRAPHICS 1, 3 & 5 MILE RADIUS OF SUBJECT PROPERTY

RADIUS 1 MILE 3 MILE 5 MILE RADIUS 1 MILE 3 MILE 5 MILE POPULATION: HOUSEHOLDS:

2022 Projection 24,326 152,332 417,807 2022 Projection 9,094 64,666 195,212

2017 Estimate 22,359 140,456 384,170 2017 Estimate 8,406 59,701 179,655

2010 Census 19,062 122,277 328,227 2010 Census 7,467 52,536 154,688

Growth 2017-2022 8.80% 8.46% 8.76% Growth 2017 - 2022 8.18% 8.32% 8.66%

Growth 2010-2017 17.30% 14.87% 17.04% Growth 2010 - 2017 12.58% 13.64% 16.14%

2017 POPULATION BY RACE: Owner Occupied 4,748 25,927 77,669

White 9,279 66,752 237,329 Renter Occupied 3,659 33,774 101,986

Black 4,351 25,424 46,586 2017 AVG HOUSEHOLD INCOME $108,373 $97,744 $108,572

Am. Indian & Alaskan 243 1,563 4,132 2017 MED HOUSEHOLD INCOME $80,784 $70,667 $80,231

Asian 7,100 38,526 74,703 2017 HOUSEHOLDS BY HOUSEHOLD INC:

Hawaiian & Pacific Island 95 765 2,106 Less than $25,000 1,375 11,899 28,871 2017 Population Hispanic Origin 2,231 11,664 30,951 $25,000 - $50,000 1,421 10,956 30,453 Other 1,290 7,425 19,314 $50,000 - $75,000 1,174 8,412 25,643 U.S. Armed Forces: 18 136 753 $75,000 - $100,000 1,007 7,502 23,230

$100,000 - $125,000 807 5,428 17,398

$125,000 - $150,000 616 3,919 12,590

$150,000 - $200,000 894 4,699 15,982

$200,000+ 1,112 6,888 25,489

13 // MT. BAKER TRANSIT ORIENTED DEVELOPMENT SITE DEMOGRAPHICS 1, 3 & 5 MILE RADIUS RINGS

1 MILE 3 MILES 5 MILES

14 // MT. BAKER TRANSIT ORIENTED DEVELOPMENT SITE ORION Commercial Partners maximizes real estate value through comprehensive project acquisition/disposition, property/ asset management, and leasing services. We are a progressive real estate services and investment firm constantly seeking a perfect alignment of interests between us as the service provider and our clients. ORION delivers a UNIFIED TEAM APPROACH to fulfill our client’s objectives. Creativity, accountability and focused attention are the hallmarks of our business.

JON BOCKMAN TAYLOR NUCCITELLI 1218 Third Avenue VINCE VONADA P// 206.456.2560 P// 206.787.9049 Suite 2200 P// 206.718.0047 [email protected] [email protected] Seattle, WA 98101 [email protected]