1200 SW MAIN ST , OR 97205

Value-Add Office 1200 Including Adjacent Parking • West End Location in Portland’s CBD • Central to Mass Transit and Amenities SW MAIN • Owner-User Potential • Parking Lot Development Opportunity

CHARLIE FLOBERG PAIGE MORGAN ADAM TAYLOR +1 503 546 3660 +1 503 972 8098 +1 503 972 8607 c h a r l i e . fl o b e r g @ a m . j l l . c o m [email protected] [email protected] Licensed in OR Licensed in OR Licensed in OR

Jones Lang LaSalle Brokerage, Inc. THE OFFERING

JLL, as exclusive advisor for the seller, is pleased to Address 1200 SW Main St, Portland, OR 97205 offer for sale the fee simple interest in 1200 SW Main Street, (hereafter “1200 Main” or “the Property”), a Number of Floors Three 15,741 square foot historic office building located in the Total Building RSF 15,741 s.f. burgeoning West End of Portland, . Total Land SF 20,037 s.f. Designed by Sutton and Whitney Architects, and completed in 1924, the Temple Beth Israel congregation Parcel R246842, R246848 originally built the three story structure to house the Year Built 1925 congregation’s religious studies programs. The Property was sold to a radio station in 1945 and underwent a Parking 35 spaces remodel spearheaded by the offices of Pietro Belluschi. Zoning RX - Central Residential* The current owners bought the building in 1977 and have FAR 8:1 since renovated to house their law offices which are still located there today. Height Limit 250 ft.

*existing office building use is grandfathered in

WALK SCORE BIKE SCORE TRANSIT SCORE 97 99 94

SW MAIN ST

SW 13TH AVE

SW 12TH AVE

SW 11TH AVE a SW Ankeny St SW Ash St Small, “human scale” blocks make walking the ideal SWmode Pine of St travel SW Washington St around the SWneighborhood Oak St

SW Alder St SW Stark St

SW Morrison St 1200 PORTLAND STREETCAR SW Yamhill St

SW MAIN ARKP SW Taylor St Morrison Bridge MAX LIGHT RAIL SW Salmon St SW Naito Pkwy

405 THE WEST END SW Main St

SW Madison St

SW Jefferson St

Robust public transportation SW Columbia St Hawthorne Bridge system including bus, light rail, and streetcar lines SW Clay St

SW Montgomery St SW Market St WILLAMETTE RIVER

SW 10th Ave

SW Harrison St

INVESTMENT HIGHLIGHTS

Owner-User and/or Multifamily Development Opportunity Development Development potential with 12,632 square feet of paved Value-add office opportunity with development potential surface parking, zoned for high-density residential. in a burgeoning submarket of Portland’s CBD. Negotiable Proximity to Mass Transit and Amenities leaseback provides short-term income stability. Close to the MAX Light Rail, Portland Streetcar, the Located in the Booming West End Pearl District and multiple food cart pods, Portland Art Ideally situated between Portland’s CBD and the growing Museum, , , and Goose Hollow neighborhood, with easy access to I-405 the famous Portland Farmer’s Market. and Hwy 26. Rare Boutique Office Building Creative Office Redevelopment Potential – Offering modern accents juxtaposed with historical grit, Below Replacement Cost and surface parking in an excellent location, 1200 Main is Attractive stabilized cost basis for an office opportunity in an ideal asset for tenants seeking a CBD location. an exceptional location. SITE DEVELOPMENT POTENTIAL

Zoning RX - Central Residential The 12,632 square foot parking lot adjacent to Site Size 12,632 s.f. the office building poses a unique opportunity for investors to capitalize on Portland’s current Height 250 ft. population boom. The parcel’s Central Residential FAR 8:1 with potential of bonus for affordable multi-family zoning represents the highest density multifamily zoning designation in the city, and its flat, corner The potential to develop a multifamily building and take advantage of transferable FAR from the office building location makes it an ideal site for ground floor Development* to construct an approximate 150,000 square foot retail with housing above. building *to be verified by interested parties

1200 SW MAIN SW 13TH AVE

EXAMPLE

Potential Parking Lot Development

SW 12TH AVE

SW MAIN ST EXISTING BUILDING FLOOR PLANS

N

FIRST FLOOR

SECOND FLOOR

THIRD FLOOR LOCATION HIGHLIGHTS

THE WEST END – PORTLAND’S CULTURE AND ENTERTAINMENT HUB

THE WEST END 1.3 MSF 712 222 of existing office existing units in the residential units pipeline

JUST BLEND OF PORTLAND’S HISTORICAL PAST Jake’s Famous Crawfish, 72 PAST Crystal Ballroom, SQUARE BLOCKS Mark Spencer Hotel PRESENT a true micromarket, stretching the retail core AND IT’S CUTTING and employment nodes from EDGE PRESENT downtown to the Pearl Ace Hotel, Living Room Theaters, Union Way AREA AMENITIES

1200 SW Main

Retail Dining Lodging 1 Danner - Union Way 42 Bluemercury 1 42 Ploy Thai 83 Rialto Poolroom 1 Hotel deLuxe 2 Nordstrom’s 43 North of West 2 Santeria 43 Coco Donuts 84 Karam Lebanese Cuisine 2 The Paramount Hotel 3 Storables 44 Steven Alan 3 44 Sushi Ichiban 85 3 Embassy Suites by Hilton 4 Sephora 45 Filson 4 World Cup Co e 45 El Gaucho 86 Cheryl’s On 12th 4 Portland Hilton Hotel 5 Nike Town 46 Peterson's 5 Henry’s Tavern 46 Imperial 87 5 The Nines Hotel 6 Apple Store 47 Chown Hardware 6 Fifth Avenue Lounge 47 Co eehouse Northwest 88 Kenny & Zuke’s Delicatessen 6 The Westin Portland 7 Mud Bay 48 Pearl ACE Hardware 7 Zaatar 48 Low Brow Lounge 89 Sake Sushi & Thai 7 Sentinel Hotel 8 Guess 49 Blick Art Materials 8 Garden Bar 49 Bistro Agnes 90 Public Domain 8 Hotel Monaco 9 Coach 50 Portland Gear 9 Fish Sauce 50 Nong's Khao Man Gai 91 Koji Osakaya 9 NW Portland Guesthouse 10 Saks Fifth Avenue 51 Restore Oregon 10 Boise Fry Company 51 Silver Dollar II 92 Saint Cupcake 10 The Mark Spencer Hotel 11 Icebreaker 52 Watchworks 11 Pho Van Fresh 52 Tandoor 93 Mucca Osteria 11 Ace Hotel 12 Whole Foods 53 Boys Fort 12 Ca e Allora 53 94 Habibi 12 Hotel Lucia 13 West Elm 54 Abercrombie & Fitch 13 World Foods Cafe & Bar 54 Hush Hush Café 95 Wilfs Restaurant & Bar 13 Hotel Vintage 14 Anthropologie 55 Montbell 14 Buttery Belly Asian Cuisine 55 Bowery Bagels 96 Thai Peacock 14 The Benson 15 North Face 56 Patagonia 15 Vault 56 Little Red's Bakeshop & Café 97 Pastaria 15 Courtyard Hotel 16 Sur La Table 57 Button Emporium & Ribbonry 16 57 Yur’s Bar & Grill 98 Flying Elephants at Fox Tower 16 Embassy Suites 17 Dr Martens 58 Benessere 17 58 John's Café 99 RingSide Fish House 17 Pearl Hampton Inn & Suites 18 Bedmart 59 Mountain Hardwear Store 18 Pearl Tavern 59 World Cup Co ee & Tea 100 Southpark Seafood 18 Grove Hotel 19 Free People 60 John Helmer Haberdasher 19 Park Kitchen 60 Shift Drinks 101 Cafe Voila 19 Canopy by Hilton 20 Ross Dress For Less 61 Bike Gallery Downtown 20 61 102 Jake's Famous Crawsh 20 The Society Hotel 21 H&M 62 Fred Meyer 21 Whole Bowl 62 Theo's 103 West Portland 22 Nordstrom Rack 63 Ti any & Co. 22 Oba 63 104 Shigezo 23 US Outdoor Store 64 Macy’s 23 Hawaiian Time 64 Marinepolis Sushi Land 105 Stag PDX Entertainment 24 Louis Vuitton 65 Victoria’s Secret 24 65 106 Public House 1 Providence Park 25 TJ Maxx 66 Regal Cinemas 25 66 Garden Bar 107 Sisters on the Road 2 McMenamins Crystal Ballroom 26 Target 67 Frances May 26 Lizard Lounge 67 Fuller’s Café 108 Elenis Philoxenia 3 McMenamins Mission Theater 27 Brooks Brothers 68 Poler 27 Ca è Umbria 68 Pearl Bakery 109 Prasad 4 Artists Repertory Theatre 28 Banana Republic 69 Radish Underground 28 69 The Big Legrowski 110 The Roxy 5 Portland Center Stage 29 lululemon athletica 70 Everyday Music 29 Fat Head's Brewery 70 F&B Café 111 Gilda's Italian Restaurant 6 30 American Apparel 71 Keen Garage 30 Tugboat Brewing Co 71 Marathon Taverna 112 19th Hole 7 Star Theater Portland 31 Cal Skate Skateboards 72 Madewell 31 72 Small Pharaoh's 113 The 8 Living Room Theaters 32 Athleta 73 Powell's City of Books 32 (30th Fl) 73 Casey's 114 Kinara 9 Regal Cinemas Fox Tower 10 33 Snow Peak Portland 74 Pendleton 33 Lauretta Jean's 74 Multnomah Whiskey Library 115 East Side Delicatessen 10 Northwest Children's Theater 34 Flowers in Flight 75 Short Stop Market 34 McMenamins Zeus Café 75 116 Bellagios 11 Prole Theatre 35 TOMS 76 Far Post Soccer Supply 35 Bunk Sandwiches 76 Bamboo Sushi SW 117 Vtopia All Vegan 12 Ti any Center 36 Portland Outdoor Store 77 adidas Timbers 36 Korean Twist 77 Cassidy's 118 Kingston Sports Bar & Grill 13 Lincoln Track & Field 37 CVS Pharmacy 78 FedEx Oce 37 Gracie's Restaurant 78 Heart Co ee 119 Papa Murphy's Take 'N' Bake 14 Multnomah Athletic Club 38 Aesop West End 79 Day and Night Grocery 38 La Jarochita 79 Bu alo Wild Wings 120 Chipotle Mexican Grill 15 Fanladen Community Center 39 Central Drugs 80 Sammy's Flowers 39 Stumptown Co ee Roasters 80 Café Yumm! 121 The Commodore Lounge 16 Rose Haven Day Center 40 Splendid 81 Portland Farmers Market 40 81 Isabel Restaurant 122 McDonald's 17 Fulcrum Fitness 41 MadeHere PDX 82 SCRAP PDX 41 Petunia's Pies & Pastries 82 Petra Cuisine 123 Driftwood Room 18 Metropolitan Center CBD OFFICE MARKET OVERVIEW

• CBD Class A vacancy stands at 8.8% and is the 12th lowest in the US • Class A rents are up 9.3% YOY with Class A asking rates up 51.46% since 2011 • Class B rent growth picked up momentum in the third quarter, growing 8.0% YOY • Class B rents have increased faster than Class A rents over the past five years, averaging 9.7% per year • Since 2010, overall Portland rents have increased 51.5%, the fourth highest on the West Coast • The catalyst for the hefty increase in rents has been Portland’s growing workforce. Since the trough in 2010, the number of people employed has grown 25.4% to over 1.2 million. • Even with a record-low unemployment rate 3.6%, Portland continues to experience strong job growth due to the constant stream of people migrating to the metro. In the past 5 years, net migration into the metro has averaged almost 23,000 people per year.

CBD Class A and B Asking Rent and Submarket Vacancy

$40 $38.76 24% $36.28 22% $35 $33.48 $34.58 $32.62 20% $31.26 $31.35 $29.63 $30 18% $28.16 $29.28 $27.16 $25.59 $25.41 $25.48 16% $25 $23.85 $22.21 14%

$20.19 $19.87 $20 11.90% 12%

10.40% 9.26% 9.49% 10% 9.15% 9.17% 9.11% $15 7.32% 8% 7.00%

$10 6% 2010 2011 2012 2013 2014 2015 2016 2017 Q3 2018 Class A Avg Rent Class B Avg Rent Vacancy Rate PORTLAND MULTIFAMILY MARKET OVERVIEW

• Portland currently has an inventory of approximately • Inclusionary Zoning policies (IZ) caused a spike in the 214,000 units. development pipeline as developers rushed to submit applications prior to the February 1, 2017 start date. • The market absorbed approximately 4,230 units in 2017. • Looking beyond the near-term spike, IZ policies are • Overall, the Portland market is still undersupplied relative significantly diminishing the pipeline as developers to market demand keeping vacancy near 5%. battle with increased construction cost and a shortage of • Portland rental rates have grown significantly since 2013 financing options. with an average increase of 8.3% year-over-year. • Given steady employment and population growth, • Currently, in the Portland MSA, there are 7,713 units under demand is projected to remain strong equating to rent construction, representing approximately 18 months of supply. growth and vacancy decreases as early as 2019. By 2020, the market will be supply constricted potentially • The increased supply has started to show its effects on replicating market dynamics from 2012-2015. the overall market with slightly increasing vacancy and slower rent growth.

4,230 units absorbed (2017) 214,000 Rents up UNITS 5.0% 8.3% y-o-y Vacancy since 2013 Portland inventory Multifamily Permitting by Unit

7,000 $1.7B 6,000 5,000 of multifamily building sales (2017) 4,000

3,000

2,000 Largest sale 1,000

$120M 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 The Centro

Highest per unit Future Development

$476,000 2,500 Ingido @ Twelve | West 1,957 2,000 1,400 1,500 1,078 974 952 1,000 Highest per foot 608 449 $628 500 295 0 The Bridgetown 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3 2019 Q4

1200 SW MAIN

CONTACT:

CHARLIE FLOBERG PAIGE MORGAN ADAM TAYLOR +1 503 546 3660 +1 503 972 8098 +1 503 972 8607 c h a r l i e . fl o b e r g @ a m . j l l . c o m [email protected] [email protected] Licensed in OR Licensed in OR Licensed in OR

EXCLUSIVELY OFFERED BY Jones Lang LaSalle Brokerage, Inc. 1120 NW Couch Street, Suite 500, Portland OR 97209 +1 503 972 8000 office +1 503 972 8001 fax jll.com/portland

© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. The information contained in this document is proprietary to Jones Lang LaSalle and shall be used solely for the purposes of evaluating this proposal. All such documentation and information remains the property of Jones Lang LaSalle and shall be kept confidential. Reproduction of any part of this document is authorized only to the extent necessary for its evaluation. It is not to be shown to any third party without the prior written authorization of Jones Lang LaSalle. All information contained herein is from sources deemed reliable; however, no representation or warranty is made as to the accuracy thereof.