COOLEY office building on 18.95 acres: renovation or redevelopment offering

9830 NE ECKERT DR HILLSBORO,

Conceptual Entry TABLE OF EXECUTIVE SUMMARY 5 INVESTMENT OVERVIEW 6

CONTENTS THE COMMUNITY 8

RENOVATION CONCEPT PLANS 11

FLOOR PLANS 12

COMPARABLES 14

LOCATION 18

MARKET OVERVIEW 20

Conceptual EXECUTIVE S U M M A RY

Colliers is pleased to present this dual-faced opportunity to own 18.95 acres COOLEY in AmberGlen, a neighborhood in east Hillsboro. AmberGlen includes a mixture of office and commercial areas with a growing number of high-density residential units being added as a result of the AmberGlen Community Plan. The AmberGlen Community Plan seeks to transform the neighborhood into high- density mixed uses catered to a larger residential base while preserving the 18.95 existing office uses. New developments include Aloft Hotels, a 136-room hotel acres opened in 2017; The Arbory and Windsor Apartments, both completed in 2018 and adding 325 units.

Equally opportunistic is the vision of a high-amenity corporate office setting. The existing 68,000 RSF building once functioned as institutional lab space for OHSU. The unique design and base building structure offers incredible renovation opportunities for the discriminate corporate user. Renderings throughout this brochure have been originated by GBD architects to assist in visualizing a modern look with contemporary elements for today’s dynamic office user.

COOLEY OFFICE BUILDING | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 5 LOCATION INVESTMENT The site is located in the AmberGlen Business Park near the Tanasbourne retail environment along NW 185th Ave and Highway 26. This area is COOLEY established as a regional retail hub at the gateway to the high-tech corridor known locally as the Silicon Forest. Near ’s Ronler Acres campus, KEY INVESTMENT HIGHLIGHTS OVERVIEW many tenants in this submarket service Intel, making proximity critical. The building also resides within an Oregon Enterprise Zone, providing potential Unique opportunity for corporate campus environment property tax incentives based on employment growth. As a redevelopment, the opportunities to go mixed-use residential and commercial are guided by with excess land for expansion, open space, or sale. the AmberGlen Community Plan. 68,000 square feet of office building set INFRASTRUCTURE on 18.95 gross acres of land in the “Silicon Limited supply of available office spaces over 50,000 square feet. None offering room for expansion. None The site fronts NE Walker Road, a major east-west thoroughfare. Future Forest” of Hillsboro, Oregon. roadways are planned through the site and the AmberGlen area as parcels are offered for sale. become redeveloped (see illustration, bottom right). Trimet MAX Light Rail blue line is accessible within 1/2 mile, providing mass transit options in NW WALKER ROAD addition to current bus lines. Priced below replacement cost. ZONING

The site is split-zoned between UC-OR (Urban Center - Office/Research) and UC-MU (Urban Center - Mixed Use). The UC-OR designation is Existing building to be delivered in shell condition with intended to support existing office development until such time for complete set of renovation conceptual plans from redevelopment to more intense urban uses. The zoning designations are GBD Architects. similar in allowing office and commercial uses with the primary exception being the MU district allows for residential uses as well. 18.95 8.5 Acres (est.) ▪▪ Gross SIGNIFICANT BARRIERS TO ENTRY NW GIBBS DRIVE Acres Ideal redevelopment play for mixed-use residential and commercial uses. Because the Portland market benefits from an Urban Growth Boundary, outside of which development is prohibited, the market has a limited amount of high quality, well-located commercial land remaining for future High amenity surroundings on-site and off-site development. The UGB encourages in-fill development, limits sprawl, and helps inflate values of existing property within the boundary. conducive to outdoor space

COOLEY OFFICE BUILDING | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 7 T H E CO M M U N I T Y

The 18.95 acre site offers the unique opportunity for a corporate office or headquarters site with excess land to expand and wooded areas for outdoor activity, walking trails, and open space. Alternatively, the existing building could be razed to make way for a higher and better use consistent with zoning and the AmberGlen Community Plan. Redevelopment can make good use of the wooded areas for amenity space valued by residential and office occupiers. Cooley Building with its creekside forest

Retirement/Assisted Living Upscale Hotel Mixed-Use, Residential/Commercial COOLEY OFFICE BUILDING | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 9 Conceptual Lobby COMPLETE RENOVATION CONCEPT PLANS

Schematic designs by GBD Architects include: ▪▪ New circular drive and plaza ▪▪ New entry reception area with polished concrete floors ▪▪ Elegant modern staircases with an open, atrium feel ▪▪ Floor to ceiling windows with views of the outdoors ▪▪ New furnishings and high efficiency lighting ▪▪ Amenity cafe with new kitchen and bar ▪▪ Workspace lounge and conference room ▪▪ Outdoor deck

COOLEY OFFICE BUILDING | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 11 Conceptual FLOOR PLAN FLOOR PLAN FIRST FLOOR - 34,000 SF ESTIMATED SECOND FLOOR - 34,000 SF ESTIMATED

Note: Penthouse mechanical room approximates 9,000 SF; served with freight elevator

COOLEY OFFICE BUILDING | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 13 BUILDING SALE 2 3 COMPARABLES 4

1

1 2 3 4 5 6

Cornell West Sunset Corporate Ronler Building D 21000 NW 9800 Nimbus 8700 Creekside Center Evergreen Pkwy Date 3/12/19 1/16/19 11/19/18 7/30/2018 10/24/18 For Sale

Price $22,000,000 $29,000,000 $7,850,000 $6,954,000 $5,100,000 $4,250,000 asking

116,350 SF 137,566 SF 39,364 SF 57,000 SF 45,625 SF 31,725 SF Size 6 Price/SF $189/SF $212/SF $200/SF $157/SF $112/SF $134/SF 5 Site Area 6.29 acres 8.29 acres 5.67 acres 5.29 acres 2.01 acres 2.88 acres

Notes Multi-tenant office. Multi-tenant office. Single-tenant flex. Vacant flex. Bought Vacant office/ Under contract to 7.5% cap. 6.3% cap. 6.1% cap. by user. warehouse. Bought user. by user.

COOLEY OFFICE BUILDING | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 15 LAND SALE 4 COMPARABLES

5 6 1 2 3 4 5 6 2 3 1

Cornell Oaks Land AmberGlen Land Wilkins Land Tanasbourne Land AmberGlen Land AmberGlen Land NW 158th & NE Compton & NE Wilkins & NE Evergreen & NE Amberglen Pkwy NE Amberglen Pkwy Greenbrier Pkwy NE Gibbs Drive NE John Olsen NE John Olsen & NE Compton & NE Von Neumann

Date 8/1/18 10/6/17 5/11/17 12/21/15 6/3/15 4/1/15

Size 6.91 ac 2.09 net ac 1.97 ac 1.95 ac 2.84 ac 5 ac

Price/SF $25.05/SF $20.76/SF $21.91/SF $23.55/SF $16.11/SF $16.53/SF

Notes Buyer plans to build Buyer plans to build Planned high- New hotel New Aloft Hotel. The Arbory two hotels with two a 135-room hotel. density residential. development under Apartments. restaurant pads. construction. 227 rooms.

COOLEY OFFICE BUILDING | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 17 Intel Ronler Acres LOCATION 1 2 NE STUCKI AVE

NE CORNELIUS PASS RD PASS CORNELIUS NE 4 Kaiser

Tanasbourne NE EVERGREEN PKWY Streets of Town Center The Cooley Office Building is located just Tanasbourne Tanasbourne 3 Village 20 minutes from downtown Portland in the 3 NW BETHANY BLVD The Streets of Tanasbourne NW CORNELL RD heart of the Sunset Corridor. 2 NE CORNELL RD 9 5 Nearby amenities include commercial 1 4 services, jogging trails, outdoor collaborative COOLEY spaces, and forest views. Additionally, 8 NE WALKER RD Cooley is conveniently located near Cornell NE JOHN OLSEN AVE Road with access to many retail amenities at 6 7 Streets of Tanasbourne, an upscale lifestyle Trimet MAX

NE AMBERGLEN PKWY shopping center, as well as Tanasbourne NE WILKINS ST NW 173RD AVE Village and Tanasbourne Town Center. 5 NE WALKER RD

Cooley Entrance (proposed) NW 185TH AVE

E MAIN ST

Miscellaneous Streets of Tanasbourne Tanasbourne Village Tanasbourne Town Center 1 Aloft Hotel 5 Krispy Kreme 1 Rock Creek Trail American Eagle Express P.F. Chang's Cold Stone Hallmark Shari's Barnes & Noble Chick-fil-A Marshalls Office Depot Pizza Schmizza 2 Whole Foods 6 Petsmart 2 Evergreen Park Banana Republic Gap Qdoba Comcast Pier 1 Subway Bed Bath & Beyond Famous Footwear Massage Envy Old Navy Ross Bath & Body Works J. Jill REI DSW Rite Aid Trader Joe's Best Buy GameStop McDonald's Panda Express Sally Beauty 3 MUV Fitness 7 Applebee’s 3 Orchard Park Buffalo Wild Wings Lane Bryant Victoria's Secret FedEx Office Round Table Burger King Jamba Juice Michael's Payless Starbucks 4 Holiday Inn 8 US Post Office 4 Magnolia Park Charming Charlie Macy's Five Guys Safeway Carl's Jr Jimmy John's Muchas Gracias Petco Target Trimet MAX 9 Einstein Bros. 5 Orenco Woods Quatama Stop Bagels Nature Park Quatama/NW 205th Ave MAX Station MARKET OVERVIEW SUNSET CORRIDOR OFFICE %

VACANCY NET ABSORPTION CONSTRUCTION RENTAL RATE

YOY FORECAST YOY FORECAST YOY FORECAST YOY FORECAST 4.8 VACANCY (Q1 2019)

Sunset Corridor Office: 139 Buildings, 9M SF Sunset Corridor is one of Portland’s premier office hubs. High-tech manufacturing is among the 492K submarket’s largest employment drivers, including Intel’s massive semiconductor facility in Hillsboro. SQUARE FEET Additionally, the Sunset Corridor is home to Nike, which owns close to 3 million square feet here. 12-MO. ABSORPTION Both companies have embarked on substantial campus expansions this cycle. Other companies with (YTD 2019) a large office footprint in the area include Wells Fargo and the headquarters for First Tech Federal Credit Union.

Vacancies remain tight, since many of the tenants either own their own buildings or are single tenants in their respective properties. Rents in the Class A product are 20% lower than the metro $24.84 average, however the submarket’s overall rents have exhibited cumulative growth over the past few AVERAGE years. Currently, there are only 3 buildings with an excess of 50,000 SF available; none are for sale. RENTAL RATE PER SQUARE FOOT PER YEAR (Q1 2019)

COOLEY OFFICE BUILDING | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 21 TOP WESTSIDE EMPLOYERS HILLSBORO AND BEAVERTON CORRIDOR

Intel is the largest and most complex site in the world, a global center FEI Company, headquartered in Oregon since 1971, makes powerful of semiconductor research and manufacturing, and the largest private microscopes used by Intel and other electronics manufacturers, as employer in Oregon. Opened in 1974, Intel now includes 7 campuses well as by biologists and other scientists. In 2002 consolidated to one spread across Hillsboro and Beaverton. 20,000 employees. campus in Hillsboro on Dawson Creek Drive. 509 employees.

Nike’s eight-building world headquarters is located in unincorporated Columbia Sportswear distributes outerwear and sportswear. In 2001 Washington County near Beaverton. In 2012, Nike was ranked Columbia Sportswear opened its headquarters in unincorporated Oregon’s #1 Fortune 500 company. 12,000 employees. Washington County, near Beaverton. 500+ employees.

Wells Fargo opened a customer service and call center in 1994 in Products is a research, design and test facility in Hillsboro largely due to phone and high-speed Internet lines set up Hillsboro since 1999. The company also has a facility in Beaverton by Intel and the existing pool of employees with customer service acquired from . In 2007, they constructed a state-of-the-art experience. 1,275 employees. laboratory at their Hillsboro site. 431 employees.

SunPower has their U.S. headquarters and largest solar module Yahoo! opened a customer service center in Hillsboro in 2005 due production facility in the Americas in Hillsboro, which opened in 2008. to close proximity to San Francisco, the company’s headquarters and In October 2013, SolarWorld announced that it will consolidate U.S. customer service culture in Oregon. 400 employees. operations at it’s Hillsboro manufacturing hub. 1,000 employees. Oracle America has 4 total buildings in Oregon. They have two Qorvo is a semiconductor company that designs, manufactures, and properties in Hillsboro, one which was acquired from their purchase supplies high-performance RF modules, components and foundry of . In February 2013 they announced they services. RFMD and TriQuint combined to become Qorvo. 6,000 were moving 130 jobs from Mexico to Hillsboro data servers. 391 employees. employees.

Acumed is an Oregon-based company that designs and builds Leupold, founded in Portland, is the leading manufacturer of telescopic orthopedic implants and surgical devices. In 2001, they built their sights and binoculars. They moved to Beaverton in 1968. 700+ headquarters off . In 2009 the company employees. purchased a building along Brookwood Parkway. 386 employees.

Epson is a manufacturing and engineering services affiliate of Genentech, owned by Swiss-based Roche Group, operates a the Seiko Corporation, headquartered in Japan. The Epson packaging and distribution facility in Hillsboro that opened in 2010. Hillsboro campus has been open since 1985. 516 employees. 400 employees. COOLEY OFFICE BUILDING | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 23 Conceptual WHY HILLSBORO? PORTLAND METRO AREA: BY THE NUMBERS

What makes Hillsboro attractive to so many companies? Clean, reliable, and inexpensive power, a skilled workforce, extensive high-speed fiber data network, abundant water supply, fast track permitting, and tax incentives at both the state and local level.

Hillsboro, Oregon, is the state’s fifth largest city, located approximately 18 miles west of Portland in Washington County. Situated in the heart of the “Silicon Forest,” 2016 Average Household Income Median Age Hillsboro is home to numerous high tech and clean tech manufacturing companies, including Intel’s primary $68,676 36.9 research and development facilities. Hillsboro serves as the state’s economic engine, attracting investment and major companies from industries across the globe, and providing HOTTEST LABOR MARKET WHY OREGON? thousands of quality jobs to a highly-skilled workforce. According to the Business Core clusters in: Insider, Oregon is one of the Nearly 4,000 high-tech businesses call Portland-Vancouver • Computer software hottest labor markets in the home, a concentration 18% greater than the national • Athletic/outdoor apparel U.S. moving out of the Great average. Since 2005, that number has increased 17%, the • Advanced manufacturing Recession. second highest in the nation. • Clean technology Employment Rate Population 96.0% ±2.4 Million HILLSBORO Median income Population 101,540 Median home price $70,180 Median age 34 $351,200 DEMOGRAPHICS COOLEY OFFICE BUILDING | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 25 OFFERING PROCEDURE

The offering of Cooley Office Building is being conducted exclusively by Colliers International. Seller requests all questions and inquiries directed to the Colliers representatives listed in this memorandum.

Colliers will be available to assist prospective investors with their review of the offering. On-site inspections of the property and tours of the market area can be arranged directly with Colliers.

Offers should include, at a minimum, the following: • The purchase price and closing date; • The source of capital, both equity and debt, for the transaction; • The amount of earnest money deposit; • A detailed schedule of the due diligence and requisite approval process; and • A description of assumptions utilized for the offer.

Rear Entrance (conceptual)

Please address your offers to the brokers listed below:

MIKE THOMAS BRANDON FRANK 851 SW Sixth Ave, Suite 1200 Senior Vice President Vice President Portland, Oregon 97204 [email protected] [email protected] 503 223 3123 +1 503 499 0059 +1 503 542 5893

COOLEY OFFICE BUILDING | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 27 Conceptual MIKE THOMAS

P 503 499 0059 E [email protected]

BRANDON FRANK P 503 542 5983 E [email protected]

This Offering Memorandum contains select information pertaining to the business and affairs of the Property. It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained by Colliers International from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum from Colliers, you agree:

1) The Offering Memorandum and its contents are confidential;

2) You will hold it and treat it in the strictest of confidence; and

3) You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.