Westwood Marketplace 14880 SE Webster Road, Milwaukie, OR 97267

SAFEWAY SHADOW ANCHORED

JOSEPH BLATNER / (503) 200-2029 SCOTT LOGAN / (503) 200-2023 BRETT JOHNSON / (503) 200-2056 [email protected] [email protected] [email protected] NET LEASED RETAIL OF MARCUS & MILLICHAP :: NetLeasedRetail.com CONFIDENTIALITY DISCLAIMER

he information contained in this Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should T not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Z0210236

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. INVESTMENT OVERVIEW

WESTWOOD MARKETPLACE (2 PARCELS) 14880 SE Webster Road 14880 SE Webster Road, Milwaukie, OR 97267 YEAR BUILT . . . . 2003 LOT SIZE 0.81 Acre BUILDING SIZE . . . 9,664 SF (includes 205 SF PRICE . . . $4,195,000 AVERAGE RENT PER SF . . . $20.54 of non-rentable space)

OCCUPANCY . . . 100% CAP . . . . 6.04% 6920 SE Thiessen Road COMBINED LOT SIZE . . . YEAR BUILT/UPDATED .1960 / 2003 NET OPERATING INCOME . . . $253,187 1.93 Acres LOT SIZE ...... 1.12 Acre COMBINED RENTABLE SF . . . PRICE PER SQUARE FOOT . . . .$295.65 .14,189 SF BUILDING SIZE . . . 4,730 SF

Safeway is not a part of investment3 NET LEASED RETAIL of INVESTMENT OVERVIEW

he Milwaukie center, sitting at more than 14,000 square feet, is 100% leased and located in Milwaukie, OR, a suburb of T Portland, OR. The center is anchored by Safeway (not a part of the sale) and was developed in 2003. It is comprised of two buildings on two different tax lots totaling nearly two acres.

The property is surrounded by a very dense residential population (nearly 100K people living within a five-mile radius of the property) that is underserved in the grocery/retail sector. It benefits from multiple points of ingress and egress and is highly visible from a heavily trafficked location at the lighted intersection of SE Thiessen andSE Webster Road.

100% LEASED SUBURB OF PORTLAND, OR The property is 100% leased to a strong tenant base, the majority of Bedroom community located only six miles from Downtown which are subject to annual rent increases. The nearest expiration Portland with a population of 640K residents and a MSA population date is still more than a year away being scheduled for December of 2.39M residents. 2019. EXCELLENT ACCESS STRONG RENTAL INCREASES Six points of ingress and egress along a lighted four-way Six of eight tenants have between 2-3% annual rent increases intersection with close proximity to Highway 224 running west and throughout their terms. Intestate 205 running north and south.

SAFEWAY ANCHORED BARRIER TO ENTRY Safeway, who just signed a new 20-year lease, anchors the The property benefits from its high density residential population, property. nearly 100K residents within a five-mile radius, in combination with the area’s limited direct shopping opportunities. 4 NET LEASED RETAIL of RENT ROLL

TENANT INFO CURRENT RENT LEASE TERMS

TENANT UNIT SQUARE FEET RENT INFO INCREASES LEASE TYPE

Papa Murphy’s WRS62 1,549 2.5% Annually NNN

Goodwill WRS64 963 3% Annually NNN

Darlynn’s Nails WRS66 1,140 2% Annually NNN Further rent roll data Perfect Look WRS70 1,140 is available upon 2% Annually NNN fully executed NDA. State Farm WRS72 1,542 Contact broker for 2.5% Annually NNN more information. CH Physical Therapy LLC WRS74 2,876 N/A NNN

* Anderson W10 2,690 2% Annually NNN

* Zeipel W11 2,040 N/A NNN

The majority of tenats are subject to annual rent increases

* Located in back building. 5 NET LEASED RETAIL of INCOME & EXPENSES

SCHEDULED RENT $281,907*

(+) EXPENSE REIMBURSEMENT $96,488

(=) GROSS POTENTIAL INCOME $378,396

(-) VACANCY @5% ($18,920)

(-) TOTAL OPERATING EXPENSES ($106,289)

CAM $45,365 Taxes $42,764 Property Insurance $1,143 Liability Insurance $2,344 Utilities $1,924 Management Expense @ 3% of EGI $10,621 Reserves for Roof and Structure .15 $2,128

(=) NET OPERATING INCOME $253,187 (-) DEBT SERVICE ($205,998)

(=) CASH FLOW $47,189

CASH ON CASH RETURN 3.75%

(-) PRINCIPAL REDUCTION ($60,548)

(=) TOTAL RETURN WITH PRINCIPAL REDUCTION $107,737

TOTAL RETURN WITH PRINCIPAL REDUCTION 8.56% * Rent is annualized, starting 9/1/2018. 6 NET LEASED RETAIL of SITE PLAN < < < <

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NOT A PART

< Parcel outline is approximate. Buyer must verify.

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7 NET LEASED RETAIL of AREA MAPS

MILWAUKIE - PORTLAND MSA LOCATION The property is located in a dense residential WESTWOOD neighborhood in Milwaukie, a close-in Portland suburb. MARKETPLACE

SEATTLE SPOKANE

WASHINGTON

PORTLAND

SALEM

EUGENE OREGON BOISE IDAHO 8 NET LEASED RETAIL of AERIAL VIEW DENSE RESIDENTIAL LOCATION

r ile ta re t s re a e 205 n o t e il m 1

ne 2.5 miles to arest retailer

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9 NET LEASED RETAIL of BIRD’S EYE VIEW FACING EAST

WESTWOOD MARKETPLACE

SE THIESSEN RD

10 NET LEASED RETAIL of BIRD’S EYE VIEW FACING SOUTH

WESTWOOD SE WEBSTER RD MARKETPLACE

11 NET LEASED RETAIL of BIRD’S EYE VIEW

FACING EAST SE THIESSEN RD THIESSEN SE

12 NET LEASED RETAIL of BIRD’S EYE VIEW FACING NORTH

SE WEBSTER RD

13 NET LEASED RETAIL of AREA OVERVIEW

Milwaukie OREGON

Milwaukie is a city in Clackamas County, Oregon. A very small portion of the city extends into Multnomah M County. The population was 20,929 at the 2016 census. Founded in 1847 on the banks of the Willamette River, the city, known as the Dogwood City of the West, was incorporated in 1903 and is noted as the birthplace of the Bing cherry. Nestled along the banks of the Willamette River, Milwaukie enjoys the comforts of a small town, as well as the benefits of its close location to Portland.

With more than 1,500 companies, including Blount International, Bob’s Red Mill, and Precision Castparts Corporation, Milwaukie is home to several of Oregon’s largest and most iconic employers. Milwaukie is the home of Dark Horse Comics. Dark Horse is known for publishing works including Sin City, the character Hellboy, and the original graphic novel series 300, as well for producing dozens of films and television series, including The Mask and TimeCop, based on characters created by Dark Horse founder Mike Richardson. The total office space of Dark Horse Comics occupies three of the city blocks in downtown Milwaukie, sporting numerous display windows visible to transit riders.

14 NET LEASED RETAIL of DEMOGRAPHICS

5 MILES MAJOR AREA EMPLOYERS

DISTANCE TO EMPLOYER PROPERTY EMPLOYEES 3 MILES Kaiser Foundation Hospitals 2.07 800 Willamette Falls Hospital 4.07 760 Providence Willamette FLS Med Ctr 4.07 730 1 MILES Mattei Insurance Services Inc 0.93 715 PCC Structurals Inc 3.39 700 Cash & Carry Stores LLC 0.94 650 Lewis & Clark College 4.45 600 WESTWOOD Kaiser Foundation Hospitals 1.96 593 MARKETPLACE Kaiser Foundation Hospitals 2.05 593 PCC Structurals Inc 1.26 500 Salvation Army 1.80 460 Western Oregon Conference 2.00 450 Oeco LLC 1.84 425 County of Clackamas 1.76 400 Providence Health & Svcs - Ore 2.92 400 Reed Institute 4.78 400 Willamette View Inc 2.76 380 Osram Sylvania Inc 2.03 378 Precision Castparts Corp 1.43 366 H G Schlicker & Assoc Inc 4.08 344 HOUSEHOLD INCOMES 2017 Avb Inc 1.51 300 1 Miles 3 Miles 5 Miles Rehab Specialists Cal LLC 1.82 300 Kiewit-Bilfinger Berger 2.04 300 AVERAGE $84,357 $74,923 $90,158 Pacific Sea Food Co Inc 3.11 300 MEDIAN $70,890 $57,570 $64,581 Blount International Inc 1.73 275 Providence Milwaukie Hospital 2.92 272 POPULATION Vigor Works LLC 1.40 250 1 Miles 3 Miles 5 Miles JC Penney Corporation Inc 1.76 250 Marquis At Home Care Inc 1.82 250 2010 11,221 97,636 232,126 Stanley Black & Decker Inc 1.83 250 2017 11,757 102,799 249,850 2022 12,233 104,874 259,362 15 NET LEASED RETAIL of Retail Research | Market Report MARKET OVERVIEW MARKET OVERVIEW PORTLANDDEMOGRAPHIC HIGHLIGHTS-VANCOUVER OVERVIEW

The Portland-Vancouver metro is located near the confluence of the Columbia2017 JOBand GROWTH*Willamette rivers andFIVE-YEARstretches POPULATIONacross the GROWTH**Oregon FIVE-YEAR HOUSEHOLD GROWTH** border intoMetroWashington State. The regionis composed or of Multnomah, Annual Growth or Annual Growth Clackamas,US AeaeColumbia, Washington and YamhillUS counties Aual Gwin Oregon, US Aual Gw and Clark and Skamania counties in Washington. Mount Hood and the Cascade Range stand to the east, 2017and the RETAILOregon SALESCoast PER MONTHMountain Range lies to the west. The metro contains approximately 2.4 million residents, with more than 640,000 peopleresiding in PerPortland, Householdthe area’s most populous city. US 2Q17 MEDIAN HOUSEHOLD INCOME RETAIL SALES FORECAST** Metro Per Person Metro US Meia US US

METRO HIGHLIGHTS * FORECAST **2017-2022

HIGH POPULATION GROWTH Lowest Vacancy Rates 2Q17 Rising Investor Demand for Portland Retail The Portland-Vancouver metro has recorded more Pushes Prices Upward at Strong Pace than 20 years of positive net migration thanks to Y-O-Y Vacancy Asking Y-O-Y % Submarket expanding industries.Basis Point Rate Rent Change • Multi-Tenant: Assets appreciated at a steady clip over Change the past 12 months as the average price climbed 10 percent to $257 per square foot. Transaction velocity ALTERNATIVE-ENERGY INDUSTRY held stable, led by the Southeast submarket. Columbia County 1.2% -370 $12.67 -13.3% Alternative-energy companies are attracted to the• Single-Tenant: Prices in the single-tenant segment Yamhill County local educated1.9% workforce-220 $17.21 and research26.5% institutionsalso rose 10 percent, bringing the average price to and are moving to the region. $384 per square foot. A shortage of suitable listings, Northwest 2.9% 30 $21.06 -14.5% though, slowed deal flow 6 percent from the prior year.

Westside 2.9% -70 $16.96 1.7% Outlook: Sales activity will be heightened in the Southeast LOW BUSINESS COSTS submarket this year as retailers and investors chase an Northeast The cost of3.8% doing-20 business$17.36 is among-0.2% the lowest oninflux of households and well-paying medical jobs.

Southeast the West Coast,3.8% supported-70 $16.52 by no7.8% state income tax in WashingtonEle and no Te sales tax in Oregon. Pii Te Southwest 4.4%Me 20 Uie$28.01 Sae 51.8% MuliTea SileTea SALES TRENDS Lloyd District 4.6% -60 $22.51 25.7% SUBMARKET TRENDS 16 Clark County 5.5% -70 $18.43 3.4% NET LEASED RETAIL of I-5 Corridor 6.1% 10 $19.60 -16.1%

Overall Metro 4.4% -30 $19.19 8.1%

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MARKET OVERVIEW

▪ er a ss a er es as ers a se ar a arae aa er ara aes e re e arae a srre sae e aes as a saes a re as res sesses ▪ The metro’s economy has shifted from timber to industries that include athletic and r aes ea e aae aar a sare ▪ erse r aes ase e er e e aer re r rs e a

ree ea eres re ea a ees ers ra ae ers aser a ea a e ea ea se e es ar re eer res a reas e r

SHARE OF 2017 TOTAL EMPLOYMENT

+ 17 NET LEASED RETAIL of MARKET OVERVIEW T

▪ The metro is eected to add nearly eole oer the net fie years resultin in the formation of nearly households T ▪ median home rice ell aboe the leel means ercent of households can afford to on their home hich is belo the national rate of ercent ▪ Of residents age 25 and older, 35 percent hold bachelor’s degrees, and 13 percent hae also obtained a raduate or rofessional deree

2017 Population by Age

T roth roth edian edian

QUALITY OF LIFE The metro contains more than acres of ars and roides numerous outdoor oortunities includin actiities at ount ood and on the ood ier The metro lies miles east of the acific cean ith miles of beaches alon the reon coast T TTT rofessional sorts teams reresent basetball soccer and hocey ultural actiities can be found at arious local enues includin the ortland rt useum orld orestry enter iscoery useum and the ortland Children’s useum and lays are staed at the ortland enter for the erformin rts aor collees and uniersities includin eis and lar acific niersity the niersity of ortland and ortland tate niersity The niersity of reon and reon tate niersity are nearby

orecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s nalytics ensus ureau 18 NET LEASED RETAIL of REAL TIME research.

CONTACT REAL TIME data.