COUNTRYWOOD APARTMENTS 31 Units • Beaverton, OFFERING MEMORANDUM 2 HFO INVESTMENT REAL ESTATE EXECUTIVE SUMMARY ASSET SUMMARY DETAILED UNIT MIX Property Countrywood Apartments Unit Type Unit Count Average Sq Ft Total Sq Ft % of Total Units Location 17700 SW Shaw Street 1 Bedrooms 6 600 3,600 19.4% City, State Beaverton, OR 97007 2 Bedrooms 14 800 11,200 45.2% County Washington 3 Bedrooms 11 1,015 11,165 35.5% Total Units 31 Total / Averages 31 838 25,965 100.0% Year Built 1974 Approx. NR Sq Ft 25,965 Average Unit Size 838 Sq. Ft. Acreage 1.46 The Countrywood Apartments is a well-located 31-unit apartment community on the west side of Beaverton. The property boasts spacious two- and three-bedroom floor plans, as well as an on-site office and laundry room. PRICE SUMMARY With rents currently averaging $1,160 per unit or $1.39 per sq ft., the Countrywood Apartments’ comfortable units and outstanding location make the property an Price $4,995,000 especially attractive value-add investment opportunity. Price Per Unit $161,129 Per Square Foot $192 The Countrywood Apartments is convenient to retail outlets and a transportation corridor connected to major employment centers in Beaverton and Portland. The Cap Rate 5.80% property is near SW Tualatin Valley Highway and SW Farmington Road—also known as OR 8 and OR 10. These two highways act as home to many retail stores, restaurants, TOURS AND INQUIRIES and shopping centers throughout the west side of Beaverton. The property enjoys a Tyson Cross • [email protected] bike score of 87 and a walk score of 68. 2424 SE 11th Avenue, Portland, Oregon 97214 Just one mile south is Aloha High School, and further south is Bi-Mart, Albertson’s, www.hfore.com • (503) 241.5541 • Fax: (503) 241.5548 Rite Aid, Shari’s, Dutch Bros, Dairy Queen and similar restaurants. The Countrywood Please do not disturb tenants. Apartments’ up-and-coming location, combined with the ability to increase rents provides a smart opportunity for income growth.

COUNTRYWOOD APARTMENTS • 31 UNITS • BEAVERTON, OREGON 3 • Convenient west-side location • Spacious units with potential to add washers and dryers • On-site manager’s office • Laundry room with storage

4 HFO INVESTMENT REAL ESTATE COUNTRYWOOD APARTMENTS • 31 UNITS • BEAVERTON, OREGON 5 6 HFO INVESTMENT REAL ESTATE COUNTRYWOOD APARTMENTS • 31 UNITS • BEAVERTON, OREGON 7 LIFESTYLE CONVENIENCES AND EMPLOYERS

Hillsboro Airport Cornelius Pass Rd Tanasbourne Town Center Orenco Station Employee Store Cornell Rd Brookwood Pkwy Walker Rd Sunset HILLSBORO High School

26 Baseline Rd 185th Ave

Providence St Vincent Johnson St Medical Center BEAVERTON Tualatin Hills Nature Park Cedar Hills Crossing Hillsboro High School 8 River Rd Countrywood Apartments Beaverton Farmington St BEAVERTON Town Square

170th Ave Beaverton

2295th Ave Aloha High School High School Murray Blvd 217 SW Hall Blvd 10 Red Tail Golf Center

Washington Square Southridge High School

8 HFO INVESTMENT REAL ESTATE BEAVERTON SUBMARKET OVERVIEW The City of Beaverton (pop. 97,514) is a major economic hub in the Like the Portland metro area, Beaverton has experienced historically Portland metro area, along with being Portland’s second-largest suburb low vacancies, with a October 2018 vacancy rate of 3.5% reported by and the fifth-largest city in Oregon. Over the past two decades, Beaverton Multifamily NW. Housing options in Beaverton include many apartment has attracted numerous high-tech businesses, and is one of Oregon’s complexes and urban-core condominiums near shops and MAX light- fastest-developing areas. Between 2010 and 2018, the city’s population rail stations. Whether they are drawn to Beaverton for the schools, increased by 8.6%. shopping or the outdoors, individuals and families will find a wide range of opportunities to fit their needs. With its stable, sustainable economy, For those looking for job prospects, few cities are likely to offer more Beaverton remains attractive and poised for future growth. opportunities than Beaverton, which is a 15-20 minute drive from downtown Portland. In 2015 and 2016, employment in Beaverton increased by 8.3%, faster than in all but a few dozen other U.S. cities. The national job growth rate over the same period was 3.5%. 24/7 Wall Street ranked Beaverton #1 on its list of Best Places to Live for 2018 for the above average health of its residents and for the city’s many employment opportunities.

Beaverton is a large, robust community that is home to major companies such as Nike Inc. and Columbia Sportswear. Several high-tech employers including Intel and Genentech are located along the Highway 26/Sunset Corridor, which includes nearby Hillsboro. The growing tech hub west of Portland includes more than 300 high-tech businesses who have made their home in what is called the “Silicon Forest.” As an increasing number of high skilled workers are drawn to the area, Beaverton rents have been increasing, and are forecast to continue this trend at a healthy pace. As of November 2018, Beaverton’s unemployment rate was 3.4%, below Oregon’s statewide average of 3.9%. • 2018 All-America City Finalist Nike is currently undergoing a major expansion rumored to cost • 2018 Best Place to Live for 2018 (24/7 Wall Street) approximately $1 billion. It plans to open the last—and largest—of four new buildings in 2019. Nearby Intel recently completed their R4 Building, • Best Places to Live (Money Magazine) 2016, 2017 a seven-story structure on its Ronler Acres complex in Hillsboro.

COUNTRYWOOD APARTMENTS • 31 UNITS • BEAVERTON, OREGON 9 PORTLAND METRO SNAPSHOT PORTLAND REGION Oregon’s largest city, Portland, is near the confluence of the Willamette and Columbia Rivers. The Portland Metro Area consists of four counties: Multnomah, Washington, Clackamas, and Clark County, Washington.

APARTMENT MARKET DIVERSIFIED ECONOMY TOP 10 LISTS The Portland Metro Area consistently ranks Portland is home to the headquarters of among the nation’s lowest for apartment Fortune 500 companies Nike and Lithia Motors. Portland consistently receives glowing vacancy rates according to the U.S. Census Fortune 1000 companies headquartered here reviews and rankings from the media. Bureau and other third-party services like REIS, include Columbia Sportswear, Greenbrier MPF Research, and Axiometrics. The U.S. Census Cos. and Portland General Electric. Fortune 2018 lists include: Bureau pegged Portland’s Q3 2018 vacancy 500 companies based outside Oregon with • #1 Restaurant City of the Year (Bon Appetit) rate at 4.5% and the U.S. average at 7.1%. major operations here are Precision Castparts • #1 Best Foodie City in America (Wallethub & and Intel. Travelpulse) #6 (Jetsetter) REIS forecast 2018 Portland metro year-over- year rents growth at 3.0% and the Multifamily Tech and software companies continue to • #3 Healthiest City in the U.S. (Active.com) NW Apartment Report survey proved average relocate their operations here or open major • #4 Best City for Biking (Fast Company) October 2017-18 year-over-year rent growth outposts in Portland. These companies enjoy • #5 Best Bike City in America (Bicycling Magazine) at 3.3%. Portland’s educated workforce, affordable • #5 Fittest Cities in America (American College of high quality of life, and a low cost of doing Sports Medicine) SKILLED WORKFORCE & STRONG EMPLOYMENT business compared to the Bay Area. • #6 Best Place to Live in the U.S. (CNBC/U.S. News) In a 2018 WalletHub report comparing 150 of Companies which have opened major • #9 Top City for Entrepreneurs and Start-Ups the largest U.S. metros, Portland is listed as branches in Portland include Airbnb, Google, (Business.org) #23 (CNBC) the 15th most educated city in America. More Squarespace, Mozilla, Simple, Survey Monkey, • #10 Greenest City in America (Newsweek) than half of Multnomah County workers have SalesForce and New Relic, Inc. Portland’s tech • #10 Most Entrepreneurial State (Amazon.com) a college degree, well ahead of the national startup companies include Viewpoint, Jama average of 38.5%. Software, Thetus, Urban Airship, Acquia, • #15 Most Educated City in America (Wallethub) According to the State of Oregon’s Employment Elemental Technologies, Act-On, Puppet Labs, • #19 Best Large City in America, 59th best city Department, Portland enjoys one of the fastest and The Clymb. in the World (Best Cities.org) job growth rates in the Pacific Northwest, and the entire nation. Data indicates the area added 31,000 jobs in 2016, 28,000 jobs in 2017, and 29,000 in 2018.

10 HFO INVESTMENT REAL ESTATE PORTLAND MARKET SNAPSHOT MAJOR EMPLOYERS GOVERNMENT SPORTSWEAR HEALTHCARE AND RESEARCH The U.S. Federal Government is Portland Nike has its world headquarters in Beaverton Health services are another major employment metro’s overall largest employer, with 20,500 and employs 12,000 Portland-area residents. The sector for the Portland area. The top healthcare workers. The State of Oregon gives employment company designs, develops and manufactures employers in the area are Providence Health to an additional 14,000 residents. footwear, apparel, equipment and accessories. Systems, with 17,543 employees, and The From here, Nike orchestrates production and Oregon Health Sciences University (OHSU), HIGH TECH & CHIP MANUFACTURING design for one of the world’s most recognizable with 16,200 workers. OHSU is the recent Attracted by the Portland area’s educated brands. In 2019 Nike will complete a $1 billion recipient of a total of $1 billion in donations workforce and relative low cost of doing expansion of its Washington County campus. for cancer research from over 10,000 Oregon business, tech companies continue moving donors. Grants from the National Institutes of to Portland—opening major branches and, in Nike’s two key competitors have a major local Health totaled $182.7 million in 2016. some cases, relocating to the area entirely. presence as well. Those employers include the North American headquarters of Adidas with MANUFACTURING With over 19,300 employees, Intel is the area’s 1,200 employees, and a new 70,000 SF outpost In trucking and transportation, Daimler Trucks— largest private employer. Intel acquired its of Under Armour. Under Armour has moved with nearly 3,000 area workers—has big plans for first Portland location in 1974. The company 100 employees into an iconic former YMCA. the Portland area. The company recently spent is currently expanding its presence with $150 million renovating its Portland facility and forthcoming D1X microprocessor chip facilities invests heavily in research and development, at the Ronler Acres Campus in Hillsboro. This including autonomous driving. is part of a five-year, $6 billion expansion, and is part of the company’s long-term plans for growth. Intel is the largest property taxpayer in Washington County, with payments of approximately $30 million a year.

Other notable Portland-area high-tech companies include ON Semiconductor and Tektronix.

COUNTRYWOOD APARTMENTS • 31 UNITS • BEAVERTON, OREGON 11 OPERATIONS ANALYSIS Income Scheduled Rents Projected Operations Note Scheduled Gross Rent $431,628 $13,923 $460,500 $14,855 1 Less: Vacancy/Credit Loss ($21,581) ($696) -5.0% ($23,025) ($743) -5.0% 2 Net Rental Income $409,262 $13,202 $437,475 $14,112 Total Other Income $39,635 $1,279 $41,536 $1,340 3 Inclds: Laundry $3,073 $99 $3,600 $116 Inclds: Utility Billing (RUBs) $24,031 $775 74.5% $24,031 $775 74.5% Inclds: Miscellaneous $12,531 $404 $12,531 $404 Gross Operating Income $449,681 $14,506 $479,011 $15,452 Expenses Projected Operations Per Unit % GOI Projected Operations Per Unit % GOI Real Estate Taxes $29,188 $942 6.5% $29,188 $942 6.1% 4 Insurance $9,500 $306 2.1% $9,500 $306 2.0% Total Utilities $37,500 $1,210 8.3% $37,500 $1,210 7.8% Administrative $6,250 $202 1.4% $6,250 $202 1.3% Fee Management $17,987 $580 4.0% $19,160 $618 4.0% On-site Payroll $22,299 $719 5.0% $23,697 $764 4.9% Landscaping $4,800 $155 1.1% $4,800 $155 1.0% Maintenance/Repairs $17,050 $550 3.8% $17,050 $550 3.6% Turnover $7,750 $250 1.7% $7,750 $250 1.6% 5 Reserves $7,750 $250 1.7% $7,750 $250 1.6% 6 Total Expenses ($160,075) ($162,646) Expenses per Unit ($5,164) ($5,247) % of Gross Operating Income -35.6% -34.0% Net Operating Income (NOI) $289,607 $316,365

12 HFO INVESTMENT REAL ESTATE OPERATIONS ANALYSIS 1. RENTS Rents are based on a March 2019 rent roll. Current scheduled rents average $1,160 per unit or $1.39 per sq ft. The projected rents are based on new move-in lease rates achieved in 2018 and ’19. Projected rents are at an average of $1,238 or $1.48 per sq ft, a 5.7% increase in rent.

RENT ANALYSIS Average Average Average Market Average Market Unit Type Unit Count Square Feet Scheduled Rent % Change Scheduled Rent Rent Rent PSF PSF

1 Bedroom / 1 Bathroom 6 600 $960 $1.60 $1,050 $1.75 8.6% 2 Bedroom / 1 Bathroom 14 800 $1,133 $1.42 $1,195 $1.49 5.1% 3 Bedroom / 1 Bathroom 11 1,015 $1,304 $1.28 $1,395 $1.37 6.5% Totals / Averages 31 838 $1,160 $1.39 $1,238 $1.48 5.7%

2. VACANCY The projected operations include a market-rate vacancy of 5.0%. 3. OTHER INCOME Other Income includes administrative, storage, and pet fees, as well as utility charges (RUBs). • RUBs. Residents are currently charged an average $68 per unit per month for water, sewer and garbage expenses. The property is individually metered for electric. 4. PROPERTY TAXES Oregon’s property taxes are evaluated on a fiscal year starting July 1. In Oregon, property taxes are not reassessed on sale and are limited to a 3.0% annual increase at the state level. Property taxes paid prior to November 1 each year receive a 3.0% discount. Property tax values for the 2018-2019 tax year are published October 15, and Countrywood’s property taxes increased 3.60% over the 2017-2018 taxes and total $30,091. Countrywood’s projected operations include the net property taxes for the 2018-2019 tax year which include the 3.0% discount for early payment and total $29,188. 5. TURNOVER The turnover cost, totaling $7,750, assumes 30% of the total units, or 9 units, will turn over each year. Approximately $850 per unit is allocated for make-ready process and does not include capital costs. 6. RESERVES Lenders require reserves be set aside to address future capital costs associated with any property as it ages. The projected operations include reserves of $250 per unit or $7,750 annually.

COUNTRYWOOD APARTMENTS • 31 UNITS • BEAVERTON, OREGON 13 OFFER TERMS ASSET SUMMARY QUESTIONS & TOUR REQUESTS: Property Countrywood Apartments Please do not disturb tenants. Location 17700 SW Shaw Street All tours and inquiries regarding Countrywood Apartments are to be City, State Beaverton, OR 97007 directed to HFO Investment Real Estate at (503) 241.5541. Total Units 31 Tyson Cross • [email protected] Year Built 1974 Greg Frick • [email protected] Average Unit Size 838 Sq. Ft. Jack Stephens • [email protected] Lee Fehrenbacher • [email protected] Todd Tully • [email protected] Adam Smith • [email protected] PRICE SUMMARY Khari Gates • [email protected] Price $4,995,000 Price Per Unit $161,129 Investment Real Estate 2424 SE 11th Avenue Per Square Foot $192 Portland, Oregon 97214 Cap Rate 5.80% www.hfore.com (503) 241.5541 Fax: (503) 241.5548

Brokers licensed in the States of Oregon and Washington.

14 HFO INVESTMENT REAL ESTATE COUNTRYWOOD APARTMENTS • 31 UNITS • BEAVERTON, OREGON 15 HFO Investment Real Estate Passion • Collaboration • Specialization

2424 SE 11th Avenue • Portland, OR 97214 www.hfore.com • 503.241.5541

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Parties who receive this information from unauthorized parties shall not be recognized. ©2019 HFO Investment Real Estate LLC. Build your legacy is a service mark of HFO Investment Real Estate. Licensed in the states of Oregon and Washington.