FIRST PACIFIC CORPORATE BLDG.

Class A Offi ce Investment Salem,

FIRST PACIFIC CORP. BUILDING | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 1 5121 SKYLINE VILLAGE LOOP S | SALEM, OREGON TABLE OF CONTENTS

EXECUTIVEEXECUTIVE PROPERTYPROPERTY SSUMMARYUMMARY DEDESCRIPTIONSCRIPTION PAGEPAGE 4 PAGEPAGE 6

LOCATIONLOCATION MARKETMARKET OOVERVIEWVERVIEW COCOMPSMPS PAGEPAGE 1122 PAGEPAGE 1144

CONTACTS:

CHRIS JOHNSON 503 542 5884 [email protected]

BRAD CHRISTIANSEN 503 499 0054 [email protected] NORTH

2.2 Miles to I-5

KKuebleruebler BBlvdlvd

Kaiser Permanente Skyline The Doctors’ Clinic Building

Country Financial Building

S d R e n li y k SSkyline Rd S

First Pacifi c Corp. Bldg. EXECUTIVE SUMMARY

Colliers International is off ering the uniquely attractive owner/user opportunity to purchase the First Pacifi c Corporation Building, located in Salem, Oregon with easy access to I-5. Built in 2003, the four-story building is 52,993 rentable square feet on 2.23 acres. The property is located in South Salem, approximately ten minutes south of the Central Business District, the Oregon State Capital building and Willamette University.

Primary access to the Skyline neighborhood is via I-5, which extends north/south just west of the property. Kaiser Permanente Skyline Medical Offi ce is located directly across Skyline Road from the property and The Doctors Clinic Building is located directly North of the property. Major east-west arterials are Kuebler Boulevard and Mission Street Southeast/Highway 22. The property has excellent freeway access and linkages to the rest of the Salem metro area.

NAME: First Pacifi c Corporate Building

ADDRESS: 5121 Skyline Village Loop S Salem, Oregon 97306 PARCEL NUMBER: R91047

RENTABLE AREA: 52,933 SF (plus 14,218 SF below grade parking garage) NUMBER OF FLOORS: 4 stories

ZONING: CO (Commercial Offi ce)

YEAR BUILT: 2003

PARKING: 3.5/1,000

FIRST PACIFIC CORP. BUILDING | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 4 INVESTMENT HIGHLIGHTS

Exceptional visibility on the corner of Skyline Harris Computing occupies 52,933 SF Rd S and Kuebler approximately 21,000 RSF. Harris is offi ce building Blvd. Across on 2.23 from Kaiser a wholly owned subsidary of acres (97,139 Permanente Constellation Software, Inc., a publicly SF) zoned adjacent to traded company on the Toronto Stock Commercial The Doctors Exchange (CSU) with a revenue of Offi ce with a Clinic,and near $3.1 billion (USD). parking ratio of Sprague High 3.5/1,000. School. Located just 2.2 miles from I-5, the First Pacifi c Corp. Building is well- 2.2 miles to I-5 and 4 miles positioned amongst complimentary south of the Central Business surrounding properties such as the District Kaiser Permanente Skyline Medical Offi ce and The Doctors’ Clinic, schools and signifi cant high-quality residential $233,381 development. Median owner occupied housing value within a 3-mile radius The neighborhood has superior demographics for the Salem metro

Demographics region, including over 23,355 56,507 households earning a median income 2016 population within a 3-mile radius of $59,095 within a 3 mile radius.

FIRST PACIFIC CORP. BUILDING | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 5 BUILDING PHOTOS

Exterior building and parking Parking garage entrance

Tenant lobby Shared lunchroom

FIRST PACIFIC CORP. BUILDING | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 6 BUILDING PHOTOS

Bookbyte Entry Common hallway

Tenant lobby Shared outdoor deck

FIRST PACIFIC CORP. BUILDING | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 7 PROPERTY DESCRIPTION

CONSTRUCTION Concrete foundation. Brick veneer exterior walls with a steel frame construction.

Main entrance has storefront glass double doors encased in metal, with a vestibule and second set of double doors EXTERIOR beyond. Two roll-up dock-high doors (approx. 9’ clear height). Additional employee entrances, which are a combination DOORS of storefront glass in a metal frame and metal in a metal frame. Access to upper level terraces via storefront glass doors in metal frames. Below-grade parking garage has electronic fence rolling doors.

Original fl at roof with rolled rubber membrane. Estimated 25-year lifespan. Fiberglass skylight panels allow additional ROOF light and provide a decorative architectural detail.

Trane-brand heat pump with supplemental boiler system. Two self-contained units with a voltage regulator. Open HVAC plenum return system and supplemental water-based cooling system.

Ceramic tiles with a ceramic base in the main reception area, restrooms, and elevator hallways. Vinyl squares with rubber base in the mail room, employee cafeteria, 4th fl oor break room, and janitorial closets. Commercial carpet with FLOOR wood/rubber base in remaining areas. COVERINGS First fl oor tenant suite is in shell condition with concrete fl ooring. Loading room with dock-high doors has concrete fl ooring. Exterior terraces have four-inch poured concrete decks with corrugated panels underneath.

Suspended t-drop acoustic panels. Painted and textured drywall soffi t details in the lobby, with fi berglass skylights on CEILING the 4th fl oor.

FIRST PACIFIC CORP. BUILDING | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 8 PROPERTY DESCRIPTION

INTERIOR Fluorescent box fi xtures, with ceiling-mounted suspended fl uorescent tube fi xtures in some areas. Recessed can and LIGHTING hanging pendant fi xtures in the lobby and around the ocular balcony on the 4th fl oor.

Two restrooms on each fl oor. Gym has two restrooms, each with a shower. Two drinking fountains in the elevator PLUMBING hallways of each fl oor and another set of drinking fountains in the gym. Employee cafeteria is equipped with one sink and one dishwasher; employee breakrooms on the 2nd and 4th fl oors also each have sinks.

ELEVATOR Three, ThyssenKrupp brand, fi ve-stop hydraulic elevators.

LIFE SAFETY Fully equipped with fi re sprinkler protection. Security system with cameras installed at the 1st fl oor entrance points.

Asphalt-paved parking lot, concrete curbing, small monument sign, and parking lot pole lighting. Several evergreen and LANDSCAPING deciduous trees, native shrubbery, grass, and bark dusting. Fenced enclosure included as part of the cell tower lease on the north side of the site.

Parking lot is striped to accommodate 136 vehicles, and the parking garage is striped to accommodate 30 vehicles, for a PARKING total of 165 vehicles. Parking ratio of 3.35/1,000 SF.

FIRST PACIFIC CORP. BUILDING | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 9 FLOOR PLANS SUITE 190 2,773 RSF Mentor Oregon

STORAGE 2,000 RSF Site Services, Inc.

SPACE 4 652 RSF EuroDry LLC

5,470 RSF Available

TOTAL 10,895 RSF 1ST FLOOR

Storage Fitness Area

FIRST PACIFIC CORP. BUILDING | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 10 FLOOR PLANS

SUITE 220 8,293 RSF BookByte

SUITE 250 4,522 RSF Site Services, Inc.

TOTAL 12,815 RSF 2ND FLOOR

Common Conference Room

FIRST PACIFIC CORP. BUILDING | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 11 FLOOR PLANS

3RD FLOOR 10,383 RSF Harris Computing

Shared Building Breakroom

FIRST PACIFIC CORP. BUILDING | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 12 FLOOR PLANS

4TH FLOOR 10,563 RSF Harris Computing

FIRST PACIFIC CORP. BUILDING | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 13 RENT ROLL General Tenant Information Rent Details

Tenant Name Lease Term Rentable SF Rate/Year Rent Changes Rent Changes Lease Exp. Suite Number Amount/Year Date $/SF

New Cingular Wireless 11/30/05 - 11/30/20 - 11/30/2020 Cell Tower $16,970 Site Services 2/1/20 - 1/31/25 2,000 RSF $0.00 1/31/2025 Storage Space EuroDry 11/17/17 - 11/16/20 652 RSF $20.40 11/16/2020 Suite 160 $13,301

Mentor Oregon 10/1/16 - 10/31/21 2,625 RSF $24.23 Oct-2020 $24.96 10/31/2021 Suite 190 $63,604

Bookbyte 3/1/17 - 2/28/21 8,293 RSF $20.14 2/28/2021 Suite 220 *Tenant is paying on $178,080 8,840 SF per Lease Site Services 2/1/20 - 1/31/25 4,522 RSF $23.73 Aug-2020 $27.39 1/31/2025 Suite 250 $107,314 Feb-2021 $28.21 Feb-2022 $29.05 Feb-2023 $29.92 Feb-2024 $30.82 Harris Computing 4/16/20 - 10/16/26 20,946 RSF $14.27 May-2020 $22.50 10/16/2026 3rd & 4th Floors $434,928 Oct-2020 $23.06 Oct-2021 $23.64 Oct-2022 $24.23 Oct-2023 $24.84 Oct-2024 $25.46 Oct-2025 $26.10

TOTAL ANNUAL RENT $814,197

FIRST PACIFIC CORP. BUILDING | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 14 OPERATING EXPENSES Expense 2020 Budget $ PSF

Interior & Exterior Maintenance $65,133 $1.23

Janitorial $25,000 $0.47

Landscape $9,000 $0.17

Parking Lot Maintenance $4,068 $0.08

Utilities 101,430 $1.92

Insurance $8,352 $0.16

Management Fee $18,109 $0.34

Property Taxes $158,652 $3.00

TOTAL OPERATING EXPENSES $347,313 $6.56

FIRST PACIFIC CORP. BUILDING | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 15 LOCATION OVERVIEW MID-

Salem is the third largest city in Oregon and is the state capital. It is located in the center of the Willamette Valley alongside the , which runs north through the city. The river forms the boundary between Marion and Polk counties.

The city is home to Willamette University, Corban University, and Chemeketa Community College. The State of Oregon is the largest public employer in the city, and Salem Health is the largest private employer. Transportation includes public transit from Salem-Keizer Transit, Amtrak service, and non-commercial air travel at McNary Field. Major roads include , Oregon Route 99E, and Oregon Route 22, which connects West Salem across the Willamette River via the Marion Street and Center Street bridges. Private Businesses: 11,137

Private Sector Employment: 123,684

OREGON STATE CAPITAL BUILDING Total Population: 390,738

City of Salem Population: 160,690 The Salem MSA growth rate, at Median Home Price: $201,300 1.96% annually, is signifi cantly Avg. Annual Wage: $40,675 above the statewide growth of 1.37%. Cost of Living: $0.5% above national average Unemployment Rate: 5.5%

FIRST PACIFIC CORP. BUILDING | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 16 TOP SALEM EMPLOYERS

FORBES MAGAZINE RANKS THE SALEM, OREGON MSA AS LOW COST OF DOING BUSINESS #3 LOWEST IN COST OF DOING BUSINESS IN THE U.S. LABOR COST IS NO LOCAL 15% 9TH LOWEST BUSINESS LOWER THAN PORTLAND, WORKERS COMP RATE BIGGER GAP COMPARED IN THE U.S. LICENSE FEES TO OTHER WEST COAST MARKETS NO SALES STABLE, TAX, NO AFFORDABLE INVENTORY UNTILITIES TAX

FIRST PACIFIC CORP. BUILDING | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 17 MARKET COMPS

OFFICE SALE COMPS

PROJECT NAME ADDRESS RSF % LEASED SALE PRICE CAP RATE SALE DATE 17th & Mission Offi ce Building 1660 Oak St SE 29,966 100% $6,7650,000 6.00% 1/17/2020 Salem, OR 97301 $220 PSF

Creekside Corporate Center 660 Hawthorne Ave SE 83,781 91% $21,750,000 7.16% 11/22/2019 Salem, OR 97301 *3 bldgs $260 PSF

Summit Square 2855 NW Crossing Drive 10,432 100% $3,450,000 6.14% 8/21/2019 Bend, OR 97702 $331 PSF

Westmoreland Medical Center 1650 Chambers Street 34,303 97% $11,150,000 6.44% 7/26/2019 Eugene, OR 97402 $325 PSF

Scanlon Building 300 SW Columbia Street 12,001 100% $3,445,000 6.29% 12/11/2018 Bend, OR 97702 $287 PSF

Willamette Surgery Center 1445 State St 19,087 100% $5,750,000 - 11/28/2018 Salem, OR 97301 $301 PSF

FIRST PACIFIC CORP. BUILDING | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 18 Off ering Procedure

The off ering of the property is being conducted exclusively by Colliers Please address your off ers to the brokers listed below. International. All questions and inquiries should be directed to the Colliers representatives listed in this memorandum. 851 S.W. Sixth Ave., Suite 1200 Portland, Oregon 97204 Colliers will be available to assist prospective investors with their review of 503.223.3123 the off ering. On-site inspections of the property and tours of the market area can be arranged directly with Colliers. CHRIS JOHSNON 503 542 5884 Off ers should include, at a minimum, the following: PORTLAND, OREGON • The purchase price and closing date; [email protected] • The source of capital, both equity and debt, for the transaction; • The amount of earnest money deposit; BRAD CHRISTIANSEN 503 499 0054 • A detailed schedule of the due diligence and requisite approval process; PORTLAND, OREGON and [email protected] • A description of assumptions utilized for the off er. CONFIDENTIALITY & DISCLAIMER STATEMENT This Off ering Memorandum contains select information pertaining to the business and aff airs of the Property. It has been prepared by Colliers International. This Off ering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Off ering Memorandum is confi - dential 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 fi nancial informa- tion obtained by Colliers International from sources it deems reliable. Owner, nor their offi cers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Off ering 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 Off ering Memorandum from Colliers, you agree: 1) The Off ering Memorandum and its contents are confi dential; 2) You will hold it and treat it in the strictest of confi dence; and 3) You will not, directly or indirectly, disclose or permit anyone else to disclose this Off ering 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 off ers to purchase the Property and to terminate discussions with any person or entity reviewing this Off ering Memorandum or making an off er 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 Off ering 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 purchas- er have any other claims against Seller or Colliers International or any of their affi liates or any of their respective offi cers, 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 Off ering Memorandum shall not be deemed to represent the state of aff airs of the Property or constitute an indication that there has been no change in the state of aff airs of the Property since the date this Off ering Memorandum.

FIRST PACIFIC CORP. BUILDING | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 20 851 S.W. Sixth Ave., Suite 1200 Portland, Oregon 97204 503.223.3123

CHRIS JOHNSON BRAD CHRISTIANSEN 503 542 5884 503 499 0054 PORTLAND, OREGON PORTLAND, OREGON [email protected] [email protected]

FIRST PACIFIC CORP. BUILDING | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 21