Development or Build-To-Suit Opportunity | Offering Memorandum Ballard Locks Maritime Campus 2800 W Commodore Way, , WA

Bill Condon Casey Gibson Kyle Back Executive Vice President Associate Vice President Associate +1 206 624 7400 +1 206 624 7418 +1 206 624 7411 [email protected] [email protected] [email protected] Table of Contents

Executive 03 Summary

Property 06 Overview

10 Location

Seattle Industrial 19 Market Report

Due 23 Diligence Executive Summary

Offering Memorandum Ballard Locks Maritime Campus Property Highlights

Rare opportunity to acquire/develop/lease 10.5 acres of industrial-zoned land along the Lake Washington Ship Canal. The entire Ballard Locks Maritime property consists of four parcels located on the south side of Salmon Bay. The two waterfront parcels (a.k.a. the “North” parcels) Campus’ strategic are bounded by West Commodore Way to the south and Salmon Bay to the north totaling approximately 2.28 acres (99,273 SF) positioning offers the following advantages to its of dry land and 2.5 acres (109,022 SF) of submerged land. The south two parcels are located directly across Commodore Way occupants: and total approximately 5.67 acres (247,131 SF). The total site is approximately 10.5 acres (455,426 SF). The waterfront parcels feature a large industrial pier with a 212 foot approach ramp and 364 lineal feet of industrial dock storage. Additionally, the site • Waterfront development features smaller finger piers with 670 feet of moorage. Large Dock can accommodate a 550+ foot vessel. opportunity. • Close proximity to Puget Sound, Remediation Plan Seattle CDB, Ballard Locks, OPPORTUNITIES AVAILABLE: • Permits and plans approved by the Department of Ecology Fisherman’s Terminial and for the environmental cleanup of the site. 1. Owners willing to sell any portion Salmon Bay. • The clean-up process will break ground in summer 2021 of the land • Quick access to the downtown, and the entire site will be clean and deliverable by late fall South Lake Union, Ballard and 2021. 2. Build-To-Suit project for the right Interbay. tenant or owner/user • Once clean, this site will be one of the only industrially- • A growing and skilled workforce. zoned waterfront sites ready for development in the Puget Sound. • A competitive business environment with easy access to major markets.

Ballard Locks Maritime Campus Offering Memorandum | Executive Summary | 4 Property Aerial

Ballard Locks Maritime Campus Offering Memorandum | Executive Summary | 5 Property Overview

Offering Memorandum Ballard Locks Maritime Campus Property Information

Large Industrial Pier: 212 foot approach ramp Department of Natural Resources (DNR) with 364 lineal feet of industrial dock structure Leased Land: Submerged: 24,377 SF (0.56 AC) Small Industrial Piers: 670 lineal feet of moorage

NORTHERN PARCELS

2750 W Commodore Way East Tax Parcel #1125039120

2800 W Commodore Way West Tax Parcel #1125039081

Size: Upland: 99,273 SF (2.28 AC) Submerged: 109,022 SF (2.50 AC)

All public utilities are available to the site

SOUTHERN PARCELS

2805 W Commodore Way West Tax Parcel #4237900405

2737 W Commodore Way East Tax Parcel #1125039050

Size: Upland: 247,131 SF (5.67 AC)

All public utilities are available to the site

Ballard Locks Maritime Campus Offering Memorandum | Property Overview | 7 Zoning Map

Details:

• Northern Parcels: General Industrial 1 (IG1/U45). The intent of the IG1 zone is to 2750 W Commodore Way protect marine and rail- IG1 U/45 related industrial areas from an inappropriate level of unrelated retail and commercial uses by limiting these uses to a density or size limit lower than that allowed for industrial uses. 2800 W Commodore Way • Southern Parcels: General IG1 U/45 Industrial 2 (IG2/U65). The intent of the IG2 zone is to allow a broad range of uses where the industrial function of an area is less established than in IG1 zones, and where additional commercial activity could improve employment opportunities and the physical condition of 2805 W Commodore Way the area, without conflicting IG2 U/65 with industrial activity. 2737 W Commodore Way IG2 U/65

Ballard Locks Maritime Campus Offering Memorandum | Property Overview | 8 Concept Plan

Details:

• Current zoning allows for over 300,000 sf of flex and light industrial product to be developed.

• Ownership waiting on direction from future tenant or buyer before proceeding with plans.

• The southern parcels are zoned IG2 U/65. The northern parcels is zoned IG1 U/45.

Ballard Locks Maritime Campus Offering Memorandum | Property Overview | 9 Location Overview

Offering Memorandum Ballard Locks Maritime Campus Location Features

Located on the Ship Canal:

• Located just South of the Ballard Locks, providing access to the Greater Puget Sound.

• In close proximity to Fishermen’s Terminal, which provides moorage for 400+ commercial fishing vessels and work boats.

• The only available industrial-zoned waterfront site ready for development on the Ship Canal.

Situated in one of the Nation’s Hottest Markets:

• Think Advisor ranked Seattle as the second-fastest growing city in the United States.

• Strong employment sectors with companies such as Amazon, Microsoft, Nordstrom, and Starbucks headquartered in the Puget Sound area.

• Growing life sciences and tech industries bolster the economic growth of the area.

Access to the Puget Sound:

• Situated in close Proximity to the Northwest Seaport Alliance, made up of the Port of Seattle and Port of Tacoma.

• As the fourth largest container gateway in North America, the Northwest Seaport Alliance handled approximately $75 billion of waterborne trade in 2019.

Ballard Locks Maritime Campus Offering Memorandum | Location Overview | 11 Local Maps

Ballard Green Lake

Commodore Way

Fremont

Magnolia

Interbay Bellevue 15th Ave W

Queen Anne Montelake

Elliot Ave W

Seattle

Ballard Locks Maritime Campus Offering Memorandum | Location Overview | 12 Large Tenants Located Near Site

Fremont

Ballard Ballard Bridge

Fishermen’s Terminal

Salmon Bay Fremont

Magnolia

Ballard Locks

Ballard Locks Maritime Campus Offering Memorandum | Location Overview | 13 RISE OF SEATTLE & EASTSIDE DUAL OFFICES Regional Map

AND OFF KL IC R E I S K OND OFF M IC D E E S R 99

TTLE OFFI SEA CES

EVUE OF ELL FIC B ES

PUGET LAKE WASHINGTON SOUND

LAKE SAMMAMISH

99

1313 Q4 2020 · COLLIERS INTERNATIONAL · 601 Union Street · Suite 5300 · Seattle, WA 98101 · 206 223 0866 · www.colliers.com Ballard Locks Maritime Campus Offering Memorandum | Location Overview | 14 PIONEER SQUARE: MAJOR TENANTS Pioneer Square Large Tenants

ELLIOTT BAY

Ballard Locks Maritime Campus Offering Memorandum | Location Overview | 15 2222 Q4 2020 · COLLIERS INTERNATIONAL · 601 Union Street · Suite 5300 · Seattle, WA 98101 · 206 223 0866 · www.colliers.com SEATTLE CBD: TECH TENANTS Seattle CBD Large Tenants

RAINIER TOWER MET PARK EAST RAINIER SQUARE DEV. ONE CONVENTION PLACE 800 FIFTH

MET PARK NORTH 1201 THIRD TWO UNION MET PARK WEST

IBM BUILDING

1800 NINTH

520 PIKE TOWER 1111 THIRD

8TH & OLIVE

MILLENNIUM TOWER

300 PINE

FIFTH & PINE 4TH & MADISON

QUALTRICS TOWER

CENTURY SQUARE SECOND & SENECA 999 THIRD RUSSELL INVESTMENTS EXCHANGE BUILDING

SECOND & SPRING MARITIME BUILDING

ELLIOTT BAY

2323 Q4 2020 · COLLIERS INTERNATIONAL · 601 Union Street · Suite 5300 · Seattle, WA 98101 · 206 223 0866 · www.colliers.com

Ballard Locks Maritime Campus Offering Memorandum | Location Overview | 16 SOUTH LAKE UNION: MAJOR TENANTS South Lake Union Large Tenants

ELLIOTT BAY

2 MILES 

2021

LAKE UNION

2424 Q4 2020 · COLLIERS INTERNATIONAL · 601 Union Street · Suite 5300 · Seattle, WA 98101 · 206 223 0866 · www.colliers.com Ballard Locks Maritime Campus Offering Memorandum | Location Overview | 17 Amenities Map NW 68th St

NW 65th St N 65th St NE 65th St

FOOD AND DRINK RETAIL/SERVICES Leary Ave NW EAT/DRINK 1. Chinook’s at Salmon Bay 1. Whole Foods 3 2.1. RedChinook Mill Burgers’s at Salmon Bay 17.2. UptownPetco Espresso

N 56th St 22nd Ave NE 10 11 12 NW Market St E Green Lake Way N 3.2. PagliacciRed Mill BuPizzargers 18.3. MagnoliaQFC Village Pub 11 16 NE 55th St 12 5th Ave NE

20th Ave NE Illinios Ave 9 4.3. BayPagliacci Cafe Pizza 19.4. IchiTraderro Sushi Joe’s & Teriyaki 14 NW 52nd St N 52nd St Ave33rd NE 4. Bay Cafe 20. Walrus & the Carpenter Penny Drive 22 5BALLARD 5. Boxcar Ale House 5. Wild Salmon Seafood Market 28th Ave 28th Ave NE Aurora Ave Ave Aurora N

Boxcar Ale House Brooklyn Ave NE Highliner Pub NE 50th St 23 5. 21. 60th Ave NE 24 32 6. La Palma Restaurant 6. Green Market & Deli 31st Ave W 20 Leary Way NW N 48th St 6. La Palma Restaurant 22. Bastille Cafe & Bar 17th Ave 17th Ave NE 4 8 NE Roosevelt Way 7. Magic Dragon 7. Metropolitan Market Ave 25th NE 2 10 N 46th St 12 7. Magic Dragon 23. Kings Hardware

Ballard Bridge NE 45th St 12 8.8. TopTop Pot Doughnuts 24.8. BallardFred Meyer Loft 6 8 BURKE GILMAN TRAIL 9. Subway 9. PCC Natural Markets 29 9. Subway 25. ThaiAve15th NE Fusion 10.10.Peet’sPeet’s CoffeeCoffee andand TeTeaa 26.10. ZeeksBuffalo Pizza Exchange NE 41st St Texas Way Texas 9 12 25thAve W 11. Cafe Appassionato 27. Theo Chocolate Inc. W Nickerson St 11. Cafe Appassionato 11. Ketch Boutique 13 Gilman Ave11 W 5 FREMONT 12. Starbucks 28. Red Door 13 4 6 12. Starbucks 12. Walgreens 28th Ave 28th Ave W 21 1 7 The Blue Heron Hale’s Ales Pub W Emerson St 13. 7th Ave NE 29. 13. The Blue Heron 13. Super Supplements 14. Niko’s Gyros 30. Paragon Restaurant 6 27 Niko’s GyrosAve2nd NE 14. Dish it Up! 14.15. Wheeler Street Kitchen 31. Nickerson Street Saloon 8 28 9 9 15. Wheeler Street Kitchen 15. Albertsons 5 4 SEATTLE 16. Szmania’s Steakhouse 32. Shelter Lounge Nickerson St Stone Way N 15th Ave Ave 15th W 45th Ave 45th Ave W 3 PACIFIC 25 N 34th St 3 UNIVERSITY 26 16. Szmania’s Steakhouse 16. Safeway 15 2 12 18 17. Uptown Espresso Montlake Blvd NE D SHOPPING/GROCERYLIFESTYLE 14 31 N Pacific St

PAWallingfordAve N RK18. Magnolia Village Pub LIFESTYLE

Whalley Place W W approach bridge N (WABN) 11th Ave Ave W 11th Whole Foods Interbay Golf Center MAGNOLIA 1 19.1. Ichiro Sushi & Teriyaki 1.1. Interbay Golf Center 28th Ave Ave 28th W Wlake Ave N 2. Petco 2. LA Fitness 20. Walrus & the Carpenter 2. LA Fitness Magnolia Blvd W 3. QFC 10th Ave E 3. Alpine Hut

32ndAve W

30th Ave W30th TO DOWNTOWN W Halladay St Harvard Ave E Prosch Ave Prosch Ave W 21. Highliner Pub 3. Alpine Hut 15 4. Trader Joe’s 4. Denali Fitness 7 34th Ave Ave 34th W 1519 Ave 15th W 3 22. Bastille Cafe & Bar 4. Denali Fitness 16 LAKE5. Wild Salmon Seafood Market E Lynn5. StOlympic Athletic Club 18 12 17 23. KingsGreen Hardware Market & Deli 5. VeOlympicrtical Wo Athleticrld Club 14 W Boston St 30 7Boston16 St UNION6. 6. 2 1

3rd Ave 3rd Ave W 24.7. BallardMetropolitan Loft Market 7.6. MagnoliaVertical WorldCenter Banks:

W Newton St 7th Ave W 4 7 Elake Ave E Chase, Peoples, U.S., Bank 9 10 25.8. ThaiFred Fusion Meyer 7. Magnolia Center Banks: Chase,

MinorAve E of America, Umpqua, Wells PUGET Queen Anne Ave N Blaine St 9. PCC Natural Markets Peoples, U.S. Bank, , SOUND 26. Zeeks Pizza Fargo, Keybank Clise Place W Magnolia Bridge Umpqua, Wells Fargo, Keybank 10th Ave Ave 10th W 10. Buffalo Exchange 8. Sound Mind & Body

24thAve E 27. Theo Chocolate Inc. 41st Ave E Elliott Ave W QUEEN ANNE Sound Mind & Body E Ave 26th 13 11. Ketch Boutique 9.8. Cascade Federal Credit Union 28. Red Door Lee St Comstock St 12. Walgreens Cascade Federal Credit Union 10.9. Gymboree Play & Music 39th Ave E 29. Hale’s Ales Pub 13. Super Supplements 11.10. HabitudeGymboree Salon Play & & Spa Music Franklin Ave E 30.14.ParagonDish it Up! Restaurant BikeTrail ELLIOTT 12.11. CrossfitHabitude Interbay Salon & Spa On-street Bicycle Lane BAY 31.15.NickersonAlbertsons Street SaloonE Aloha St Valley St 13.12. UrbanCrossfit Fitness Interbay Roy St 32.16.ShelterSafeway Lounge 14. Tennis Courts Mercer St 13. Urban Fitness E Madison St

20thAve E 22nd Ave 22nd Ave E 14. Tennis Courts Harrison St

26th Ave

12th Ave

5thAve W SR-99 SB Ballard Locks Maritime Campus Offering Memorandum | Location Overview | 18 Elliott Ave 2nd Ave E Denny Way Denny Way E Denny Way Broadway E

14thAve 16th Ave 19th Ave

23rd Ave23rd Market Overview

Offering Memorandum Ballard Locks Maritime Campus Market Rent Per SF Market Rent Per SF Magnolia/Ballard $18.00 Market Overview $16.00

$14.00

Vacancy levels in Magnolia typically trend below the $12.00 metro average. In Q4 2020, the vacancy rate in the submarket was at 2.2%, which is much lower than the $10.00 overall market vacancy of 7.4%. Rental rates in the Magnolia market have also increased faster than the $8.00 rest of the market. Magnolia saw a 3.2% rental rate growth in Q4 2020, compared to the 1.9% that the $6.00 11 12 13 14 15 16 17 18 19 20 21 overall market experienced.

© 2021 CoStar Realty Information Inc. 2/25/2021 The development pipeline in Magnolia has been Availability Rate completely dry for over 4 years. The last project to open in the submarket was a 28,000-sf specialized industrial building in February 2017. Developers have not been active in the submarket for this time due to the lack of developable space. This is an incredibly rare opportunity to develop over 300,000 sf of buildings in a submarket with higher-than-average rental rates and rental growth, and lower-than-average vacancy rates.

Ballard Locks Maritime Campus Offering Memorandum | Market Overview | 20 Population, income & housing trends 1 mile radius Prepared by Esri 2737 W Commodore Way, Seattle, Washington, 98199 1 mile radiusMagnolia/Ballard Market Snapshot

Population Trend Median Household Income Average Household Income Per Capita Income

17,766 19,779 25,434 27,491 $95,901 $108,944 135,219 153,937 $74,463 $84,660

2000 Total 2010 Total Current Total 5 Yr Projected Current Median HH 5 Yr Projected Current Average 5 Yr Projected Avg Current Per Capita 5 Year Projected Per Population Population Population Total Population Income Median HH Income HH Income HH Income Income Capita Income

2010 Age Pyramid 2025 Age Pyramid Current HH By Income 5 Yr Projected HH By Income Current Housing By Ownership The largest group: The largest group: 1.5% 2.6% 1.5% 2.3% 2010 Females 2025 Female $200,000+ $200,000+ 61.7% 1.4% 2.1% 1.6% 2.1% Age 25-29 Population Age 1.7% 2.3% 2.7% 3.4% (U.S. Census) 25-29 (Esri) $150000-$199,999 $150,000-$199,999 2.2% 2.5% 3.8% 4.0% 3.5% 3.6% 4.7% 4.8% $100,000-$149,999 $100,000-$149,999 38.3% The smallest group: The smallest group: 5.5% 5.7% 5.3% 5.2% $75,000-$99,999 $75,000-$99,999 6.7% 6.3% 2010 Males 6.2% 5.8% 2025 Male 6.7% 6.4% Age 80-84 6.7% 6.2% Population Age Owner Occupied HUs Renter Occupied HUs $50,000-$74,999 $50,000-$74,999 6.6% 6.5% (U.S. Census) 7.3% 6.9% 85+ (Esri)

9.3% 7.2% 8.8% 8.1% $35,000-$49,999 $35,000-$49,999 5 Yr Projected Housing By Ownership 10.1% 9.3% 9.1% 8.1% 12.5% 12.1% 10.7% 9.7% $25,000-$34,999 $25,000-$34,999 13.4% 13.6% 11.2% 12.6% 62.1% $15,000-$24,999 $15,000-$24,999 5.3% 6.8% 6.8% 7.4% 2.5% 2.5% 3.1% 3.3% < $15,000 < $15,000 2.9% 3.0% 3.1% 3.1% 37.9% 3.5% 3.2% Dots show 3.3% 3.3% Dots show 201612840 0 10 20 4.7% 4.5% comparison to 4.0% 3.8% comparison to

36204122844 King County 32%1601632% King County Dots show comparison to King County Dots show comparison to King County Owner Occupied HUs Renter Occupied HUs

Race and Ethnicity Current Year Population By Race Tapestry Segments Current Year Housing Stats The largest group: White Alone (80.79) The smallest group: Pacific Islander Alone (0.29) Metro Renters 61.2% Indicator Value Difference 3B $720,255 White Alone 80.79 +19.43 8,602 households of Households 100% Median Home Value Black Alone 2.24 -4.59 Pacific Islander Population 73 American American Indian Population 163 Other Race Population 411 2A Urban Chic 18.0% Indian/Alaska 0.64 -0.11 Black Population 569 Population of Two or More Races 1,381 2,523 households of Households $12,404 Native Alone Asian Population 2,289 White Population 20,546 Asian Alone 9.00 -11.06 Average Spent on Mortgage & Basics Pacific Islander 2019 Annual Household Spending Trendsetters 11.2% 0.29 -0.53 3C Alone 1,573 households of Households $1,501 Other Race 1.62 -2.76 Two or More Races 5.43 -0.37 Median Contract Rent Hispanic Origin 6.02 -3.98 $3,389 $264 $5,992 (Any Race) Apparel & Computers & Eating Out Services Hardware 2737 W Commodore Way, Seattle, Washington, 98199 1 mile radius Bars show deviation from $7,886 $7,511 Health King County Groceries Care Population, income & housing trends

Ballard Locks Maritime Campus Offering Memorandum | Market Overview | 21 Puget Sound Market Overview

Quick Stats Industrial repeatedly performed like the belle of the real estate investor ball this year, and 2020 was no exception. Pricing Market Current Yr. Qtr. in King County increased 71% over the 3-year average, with sales over the quarter averaging $284 PSF. Ending the year with 7.5M SF of transactions totaling $1B, 2020 had 62% less activity than 2019, which is likely due to last year’s push to get Vacancy 7.40% deals done before the excise tax took effect. In addition to the shift in shopping from in-person to e-commerce, there have Lease Rates $0.80 been occupancy shifts throughout the market as companies relocate to newer, more functional space, provided by the more than 3M SF delivered this quarter alone. Vacancy responded with a 0.7% increase from Q3 to 7.5%. Warehouse rents Net -764K slightly increased 1.9% to $0.86 over the quarter, with gains across the market, except Seattle Close-in and Kent Valley. The Absorption next year is likely to bring much of the same, although development activity will continue to move southward into Thurston Construction 4.91M County.

Supply increase by 2% next year, with 4.9M SF Demand Outlook under construction. Further out, there Fundamentally, Puget Sound remains Until November, there was no good Top of mind for all occupiers, landlords, is 22.5M SF of proposed product, which in the same position it was at the news about air travel, in Seattle and investors is the distribution, is more distributed around the market beginning of the year. Pierce and or anywhere else. Given Boeing’s storage, and delivery of the COVID-19 with 12% on the Eastside or Northend Thurston Counties continue to influence on the Puget Sound industrial vaccine throughout 2021. Mirroring and 15% in Seattle, but still 73% south dominate the development pipeline, economy, it was incredibly positive 2020, e-commerce will remain the of Kent Valley. Despite the uptick in further stretching the market news that Alaska Airlines—another dominant industrial trend until it vacancy, which increased 70 basis southward. In terms of future supply, major Seattle-area employer and is safe for people to shop in stores points from Q3 to Q4, occupiers are 97% of product under construction occupier—was selling 10 Airbuses from again, potentially in Q3 or Q4 2021. unlikely to have an easier time finding is south of Kent Valley, with the its 2016 Virgin America merger and Meanwhile, manufacturers continue to the space they are looking for. Second- remainder on the Eastside. As a replacing them with Boeing 737 Max make their supply chains more efficient generation space is rarely as functional percent of existing inventory, Puget 9’s, which are manufactured in Renton. and redundant, in order to stave for retail and logistics users, who are Sound’s industrial space is going to While this does not directly create off shortages in the event of further most actively pursuing space. demand for new space, it secures trade tension or global supply chain Vacancy/Net Absorption occupancy for a significant swath of disruption. It is likely that rental rates Puget Sound’s manufacturing buildings. will increase next year in all markets Additionally, there will be temporary except Kent Valley, which has lower demand for space over the next year cost space coming online as users or so because of the COVID-19 vaccine move to more efficient buildings. storage and distribution. It should go without saying, though, that most of 2021’s leasing activity will be from one trend: e-commerce.

Ballard Locks Maritime Campus Offering Memorandum | Market Overview | 22 Due Diligence

Offering Memorandum Ballard Locks Maritime Campus Environmental Status

Time Oil Company (TOC) began its Seattle Terminal operations in the early 1940s primarily to support World War II efforts and later became one of the largest petroleum companies in the Pacific Northwest with over 100 gasoline stations and convenience stores. Operations ceased at the Seattle Terminal in 2001 and for nearly 60 years included bulk storage and distribution of petroleum products including diesel, gasoline, kerosene and mineral spirits. Petroleum products were delivered to the Bulk Terminal via rail cars from the BNSF railroad, barges and tanker trucks and stored in large above ground storage tanks. Petroleum was then either transported via ships/barges, or pumped directly into tanker trucks. Drums were also filled with fuel in the barreling sheds located on-site and then transferred to the shipping dock via a drum incline conveyor system. Other operations included oil and solvent storage, machine shop operations and hydraulic repair.

TOC Seattle Terminal 1, LLC acquired the Property in November 2020 under the terms of a Prospective Purchaser Consent Decree Chemicals of interest were identified as part of the RI/FS and indicator hazardous (PPCD) with the State of Washington Department of Ecology (DOE). substances (IHS) that pose the greatest risk to human health and the environment Under applicable Washington law, the only way the state can enter were identified in soil and groundwater and include total petroleum hydrocarbons into an actual settlement is in the form of a consent decree. It is the (TPH) gasoline-, diesel-, and oil- range organics (GRO, DRO, and ORO), arsenic, benzene, highest level of settlement protection available to a private party trichloroethene (TCE), vinyl chloride (VC), and pentachlorophenol (penta). As presented conducting cleanup work at a DOE site. The PPCD also includes in the CAP, the final cleanup action will include implementing several different remedial a cash out settlement agreement with the state regarding any technologies including soil excavation and disposal, light non-aqueous phase liquids potential contribution to the adjacent aquatic sediments. This (LNAPL) removal and/or encapsulation, in-situ solidification and stabilization (ISS), in-situ is a very unusual and favorable result that provides important groundwater treatment, installation of an interceptor trench and permeable reactive additional protections to the buyer. barrier (PRB), and capping.

Since July 2018 and as part of the due diligence process, the site Building demolition and abatement activities are scheduled to commence Q2 2021 with was enrolled into the voluntary cleanup program (VCP) with the remedial construction slated to begin by Q2 2021 with completion by Q4 2021. DOE. Supplemental remedial investigation (RI) activities were performed in 2019 and 2020 to fill the remaining data gaps necessary to complete the RI/FS (Remedial Investigation/Feasibility Study) for the Property. A final RI/FS and Corrective Action Plan (CAP) were approved by DOE in late 2020.

Ballard Locks Maritime Campus Offering Memorandum | Due Diligence | 24 Master Plan Master Plan

Details:

• The entire property consists of four parcels located on the south side of Salmon Bay. The total site is approximately 10.5 acres (455,426 SF).

• Current zoning allows for over 300,000 sf of flex and light industrial product to be developed

• The two waterfront parcels total approximately 2.28 acres (99,273 SF) of dry land and 2.5 acres (109,022 SF) of submerged land

• The south two parcels total approximately 5.67 acres (247,131 SF).

Ballard Locks Maritime Campus Offering Memorandum | Due Diligence | 25 Land Use- North Parcels

HEIGHT LIMIT: (MOST RESTRICTING ZONE): UM - 35’ (EXCEPTIONS ALLOWED FOR SOME WATER-DEPENDANT USES) FAR LIMIT: UG1 - 2.5 FOR ALL USES LOT COVERAGE: UM - 75% OF DRY LAND PORTION OF WATERFRONT ALLOWABLE USES - UM / IG1 CONSOLIDATED (SMC 23.60A.503/23.50.012):

A. AGRICULTURAL USES 1. AQUACULTURE C. COMMERCIAL USES 1. COMMERCIAL WATER-DEPENDANT OR WATER RELATED 2. EATING AND DRINKING ESTABLISHMENTS (MAX. 2,500 SF) 4. FOOD PROCESSING AND CRAFT WORK 5. OFFICES (MAX. 10,000 SF) 6. LABORATORIES, RESEARCH AND DEVELOPMENT 7. SALES AND SERVICES, GENERAL (MAX. 10,000 SF) 8. SALES AND SERVICE, HEAVY E. INSTITUTIONAL USES 4. YACHT, BOAT, AND BEACH CLUBS H. PARKS AND OPEN SPACE USES 2. SHORELINE PARKS AND OPEN SPACES I. PUBLIC FACILITIES (SIMILAR TO LIKE USES) N. TRANSPORTATION FACILITY USES 2. CARGO TERMINALS 3. MOORAGE A. BOAT MOORAGE 1. COMMERCIAL MARINAS 2. RECREATIONAL MARINAS B. DRY BOAT STORAGE 5. PARKING B. ACCESSORY USE 6. PASSENGER TERMINAL 7. RAIL TRANSIT FACILITIES 10. TUGBOAT SERVICES Ballard Locks Maritime Campus Offering Memorandum | Due Diligence | 26 Land Use- South Parcels

HEIGHT LIMIT: 3. ENTERTAINMENT USES (MAX. 10,000 SF) 12. SALES AND SERVICES, MARINE G2 - 65’ a. THEATERS AND SPECTATOR D. HIGH-IMPACT USES FAR LIMIT: SPORTS FACILITIES E. INSTITUTIONS UG2 - 2.5 FOR ALL USES • LECTURE AND MEETING HALLS 2. CHILD CARE CENTERS ALLOWABLE USES - IG2 (SMC 23.50.012): (SMC SF • MOTION PICTURE THEATERS G. MANUFACTURING USES RESTRICTION) • PERFORMING ARTS THEATERS 1. MANUFACTURING, LIGHT 4. FOOD PROCESSING AND CRAFT WORK 2. MANUFACTURING, GENERAL A. AGRICULTURAL USES 5. LABORATORIES, RESEARCH AND 3. MANUFACTURING, HEAVY 2. AQUACULTURE DEVELOPMENT 7. MEDICAL SERVICES (MAX. 10,000 SF) H. PARKS AND OPEN SPACE C. COMMERCIAL USES I. PUBLIC FACILITIES 1. ANIMAL SHELTERS AND KENNELS (MAX. 8. OFFICES (MAX. 25,000 SF) 10,000 SF) 9. SALES AND SERVICES, AUTOMOTIVE (MAX. 3. OTHER PUBLIC FACILITIES 2. EATING AND DRINKING ESTABLISHMENTS 25,000 SF) K. STORAGE USES • RESTAURANTS (MAX. 5,000 SF) 10. SALES AND SERVICE, GENERAL (MAX. 1. MINI-WAREHOUSES 25,000 SF) 2. STORAGE, OUTDOOR • DRINKING ESTABLISHMENTS (MAX. • RETAIL SALES, MAJOR DURABLES 3,000 SF) (MAX. 25,000 SF) 3. WAREHOUSES

Ballard Locks Maritime Campus Offering Memorandum | Due Diligence | 27 North Parcels Combined

LOT SIZE: (35,716 + 66,055) = 101,771 SF

BUILDING FOOTPRINT: 24,000 SF

LOT COVERAGE: 23.58%

BUILDING AREAS: A: 27,000 SF PARKING REQUIREMENTS LVL 1: LIGHT INDUSTRIAL (9,000 SF)

LVL 2: LIGHT INDUSTRIAL (9,000 SF) USE AREA RATIO REQ. PARKING A-C: CARETAKERS 4,800 SF +1 PER UNIT 6 LVL 3: OFFICE (7,400 SF) A-C: LIGHT INDUSTRIAL 48,000 SF 1:2,000 24 CARETAKER UNIT X2 (1,600 SF) A-C: OFFICE 19,200 SF 1:1,000 20 TOTAL: 50 STALLS B: 27,000 SF STALL TYPE REQ. STALL TYPES PROPOSED LVL 1: LIGHT INDUSTRIAL (9,000 SF) LARGE (MIN 35%) 37 41

LVL 2: LIGHT INDUSTRIAL (9,000 SF) MEDIUM 0 0 SMALL (MIN 35%) 37 59 LVL 3: OFFICE (7,400 SF) ACCESSIBLE 5 (3 VAN INCL.) 5 CARETAKER UNIT X2 (1,600 SF) TOTAL OFF-STREET PARKING 105 STALLS

C: 18,000 SF TOTAL STREET PARKING 50 STALLS LVL 1: LIGHT INDUSTRIAL (6,000 SF) FLOOR AREA RATIOS PER PROPOSED PARCEL: LVL 2: LIGHT INDUSTRIAL (6,000 SF) BUILDING LOT AREA BUILDING AREA RATIO LVL 3: OFFICE (4,400 SF) A 35,715.67 SF 27,000 SF 0.76 CARETAKER UNIT X2 (1,600 SF) B 35,288.99 SF 27,000 SF 0.77 C 30,765.99 SF 18,000 SF 0.59 TOTAL: 72,000 SF SITE TOTAL 101,771 SF 72,000 SF 0.71

Ballard Locks Maritime Campus Offering Memorandum | Due Diligence | 28 South Parcels Combined (Option 1)

LOT SIZE: (68,450 + 178,678) 247,128 SF PARKING REQUIREMENTS BUILDING FOOTPRINT: 80,400 SF USE AREA RATIO REQ. PARKING LOT COVERAGE: 32.53% A-F: CARETAKERS 9,600 SF +1 PER UNIT 12 BUILDING AREAS: A: 36,000 SF LVL 1: LIGHT INDUSTRIAL (9,000 SF) A-E: LIGHT INDUSTRIAL 90,000 SF 1:2,000 45 LVL 2: LIGHT INDUSTRIAL (9,000 SF) A-F: OFFICE 68,000 SF 1:1,000 68 LVL 3: OFFICE (9,000 SF) LVL 4: OFFICE (7,400 SF) D: RESTAURANT 1,500 SF 1:250 6 CARETAKER UNIT X2 (1,600 SF) D: CONVIENENCE STORE 4,500 SF 1:500 9 B: 36,000 SF LVL 1: LIGHT INDUSTRIAL (9,000 SF) F: STORAGE 93,200 SF 1:2,000 47 LVL 2: LIGHT INDUSTRIAL (9,000 SF) TOTAL: 187 STALLS LVL 3: OFFICE (9,000 SF) LVL 4: OFFICE (7,400 SF) STALL TYPE REQ. STALL TYPES PROPOSED CARETAKER UNIT X2 (1,600 SF) LARGE (MIN 35%) 80 80 C: 36,000 SF LVL 1: LIGHT INDUSTRIAL (9,000 SF) MEDIUM 0 56 LVL 2: LIGHT INDUSTRIAL (9,000 SF) SMALL (MIN 35%) 80 86 LVL 3: OFFICE (9,000 SF) LVL 4: OFFICE (7,400 SF) Loading 0 2 CARETAKER UNIT X2 (1,600 SF) ACCESSIBLE 11 (6 VAN INCL.) 11 D: 18,000 SF TOTAL OFF-STREET PARKING 235 STALLS LVL 1: RESTAURANT (1,500 SF) GROCERY STORE (4,500 SF) LVL 2: LIGHT INDUSTRIAL (6,000 SF) TOTAL STREET PARKING 69 STALLS LVL 3: OFFICE (4,400 SF) CARETAKER UNIT X2 (1,600 SF) E: 45,000 SF FLOOR AREA RATIOS PER PROPOSED PARCEL: LVL 1: LIGHT INDUSTRIAL (15,000 SF) LVL 2 LIGHT INDUSTRIAL (15,000 SF) BUILDING LOT AREA BUILDING AREA RATIO LVL 3: OFFICE (13,400 SF) A 33,706.24 SF 36,000 SF 1.07 CARETAKER UNIT X2 (1,600 SF) F: 95,800 SF B 46,304.29 SF 36,000 SF 0.78 LVL 1: OFFICE (1,000 SF) C 19,551.37 SF 36,000 SF 1.84 CARETAKER UNIT X2 (1,600 SF) STORAGE (28,400 SF) D 16,504.01 SF 18,000 SF 1.09 LVL 2: STORAGE (32,400 SF) E 64,037.13 SF 45,000 SF 0.70 LVL 3: STORAGE (32,400 SF) F 67,025.79 SF 95,800 SF 1.43 TOTAL: 266,800 SF SITE TOTAL 247,128 SF 266,800 SF 1.08

Ballard Locks Maritime Campus Offering Memorandum | Due Diligence | 29 South Parcels Combined (Option 2)

LOT SIZE: (68,450 + 178,678) 247,128 SF BUILDING FOOTPRINT: 66,000 SF LOT COVERAGE: 26.71% PARKING REQUIREMENTS BUILDING AREAS: A: 36,000 SF LVL 1: LIGHT INDUSTRIAL (9,000 SF) USE AREA RATIO REQ. PARKING LVL 2: LIGHT INDUSTRIAL (9,000 SF) A-G: CARETAKERS 11,200 SF +1 PER UNIT 14 LVL 3: OFFICE (9,000 SF) LVL 4: OFFICE (7,400 SF) A-G: LIGHT INDUSTRIAL 126,000 SF 1:2,000 63 CARETAKER UNIT X2 (1,600 SF) A-G: OFFICE 99,800 SF 1:1,000 100 B: 36,000 SF LVL 1: LIGHT INDUSTRIAL (9,000 SF) D: RESTAURANT 1,500 SF 1:250 6 LVL 2: LIGHT INDUSTRIAL (9,000 SF) LVL 3: OFFICE (9,000 SF) D: CONVIENENCE STORE 4,500 SF 1:500 9 LVL 4: OFFICE (7,400 SF) TOTAL: 192 STALLS CARETAKER UNIT X2 (1,600 SF) C: 36,000 SF STALL TYPE REQ. STALL TYPES PROPOSED LVL 1: LIGHT INDUSTRIAL (9,000 SF) LARGE (MIN 35%) 97 97 LVL 2: LIGHT INDUSTRIAL (9,000 SF) LVL 3: OFFICE (9,000 SF) MEDIUM 0 60 LVL 4: OFFICE (7,400 SF) CARETAKER UNIT X2 (1,600 SF) SMALL (MIN 35%) 97 105 D: 18,000 SF Loading 0 0 LVL 1: RESTAURANT (1,500 SF) GROCERY STORE (4,500 SF) ACCESSIBLE 13 (7 VAN INCL.) 13 LVL 2: LIGHT INDUSTRIAL (6,000 SF) TOTAL OFF-STREET PARKING 275 STALLS LVL 3: OFFICE (4,400 SF) CARETAKER UNIT X2 (1,600 SF) E: 45,000 SF LVL 1: LIGHT INDUSTRIAL (15,000 SF) TOTAL STREET PARKING 69 STALLS LVL 2 LIGHT INDUSTRIAL (15,000 SF) LVL 3: OFFICE (13,400 SF) CARETAKER UNIT X2 (1,600 SF) FLOOR AREA RATIOS PER PROPOSED PARCEL: F: 36,000 SF LVL 1: LIGHT INDUSTRIAL (9,000 SF) BUILDING LOT AREA BUILDING AREA RATIO LVL 2: LIGHT INDUSTRIAL (9,000 SF) A 33,706.24 SF 36,000 SF 1.07 LVL 3: OFFICE (9,000 SF) LVL 4: OFFICE (7,400 SF) B 46,304.29 SF 36,000 SF 0.78 CARETAKER UNIT X2 (1,600 SF) C 19,551.37 SF 36,000 SF 1.84 G: 36,000 SF LVL 1: LIGHT INDUSTRIAL (9,000 SF) D 16,504.01 SF 18,000 SF 1.09 LVL 2: LIGHT INDUSTRIAL (9,000 SF) LVL 3: OFFICE (9,000 SF) E 64,037.13 SF 45,000 SF 0.70 LVL 4: OFFICE (7,400 SF) F-G 67,025.79 SF 72,000 SF 1.07 CARETAKER UNIT X2 (1,600 SF) TOTAL: 243,000 SF SITE TOTAL 247,128 SF 243,000 SF 0.98

Ballard Locks Maritime Campus Offering Memorandum | Due Diligence | 30 Development or Build-To-Suit Opportunity | Offering Memorandum Ballard Locks Maritime Campus 2800 W Commodore Way Seattle, WA

Disclaimer This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s). ©2021. All rights reserved.