Offering Memorandum

EASTLAKE DEVELOPMENT SITE

3101 - 3107 Eastlake Ave E , WA

Exclusively offered by Paragon Real Estate Advisors

600 University Street | Suite 2018 | Seattle, WA 98101 1 P 206.623.8880 | E [email protected] | ParagonREA.com Offering Summary

EASTLAKE DEV SITE

Name Eastlake Development Site

Address 3101 - 3107 Eastlake Ave E, Seattle WA 98102

Price UNPRICED

Parcel Numbers 195970-2740 / 6,820 Land Sq.Ft. 195970-2745 / 9,680 Land Sq.Ft. Total Lot Size 16,500 Sq.Ft.

Zoned NC3P-40

Existing Improvements Commercial Mixed-Use Buildings

Development Potential 75+ Units (Proposed HALA)

Terms Cash Out

600 University Street | Suite 2018 | Seattle, WA 98101 2 P 206.623.8880 | E [email protected] | ParagonREA.com Investment Highlights

A+ Eastlake location - Close to everything

75 + unit development site primed for condos or apartments

Views of downtown Seattle and

Corner lot

Walking distance to restaurants, shops, cafés, pubs, service businesses and more

73% of households in this neighborhood are renters

Walk Score of 77 - very walkable

High visibility location with high daily traffic counts

Plentiful neighborhood amenities include retail and restaurants

Centrally located near the CBD, University of Washington, Seattle Pacific University, Seattle University, Amazon and Light Rail

Neighborhood parks include Fairview Park, Roanoke Park, Rogers Playground and Roanoke Street Mini Park

On a major bus line

600 University Street | Suite 2018 | Seattle, WA 98101 3 P 206.623.8880 | E [email protected] | ParagonREA.com Neighborhood Map

SEATTLE CBD PUGET SOUND

CAPITOL HILL MADISON PARK AMAZON CAMPUS

SOUTH LAKE UNION

EASTLAKE DEV SITE

FREMONT UNIVERSITY OF WASHINGTON

WALLINGFORD

UNIVERSITY DISTRICT

600 University Street | Suite 2018 | Seattle, WA 98101 4 P 206.623.8880 | E [email protected] | ParagonREA.com Eastlake

Eastlake is one of Seattle’s most iconic neighborhoods, boasting the famous flotilla of boat houses on the lake, surrounded by an eclectic mix of historical townhomes, modern condominiums and colorful apartment buildings. It is a neighborhood with a rich and distinctive history and feel. Starting as little more than a floating shantytown for migrant workers has transformed over time into a diverse and electric neighborhood. While once considered “floating shanties”, these residences are still small, but vary from modest to opulent. It’s perfectly positioned at the center of Seattle’s urban and cultural hub—UW, South Lake Union, Downtown and Capitol Hill, giving residents and visitors alike a unique and active springboard towards accessing work and play within the city. Its minutes away from Amazon’s 30,000+ employee campus in South Lake Union, and adjacent to many tech and biotech companies that make up a large part of the city’s employment infrastructure, such as Adaptive Biotechnologies and Immune Design Corporation. Local coffee shops, boutiques and other businesses also thrive alongside large chains. Eastlake is an attractive neighborhood and conveniently located to major thoroughfares and public transportation that make accessing the city at large easy. Many of the major bus routes connect to the U District and Downtown, opening up an enormous range of options for employment, education and entertainment for residents and visitors alike.

600 University Street | Suite 2018 | Seattle, WA 98101 5 P 206.623.8880 | E [email protected] | ParagonREA.com Eastlake Snapshot

Population 7,628

Male 53% Female 47%

Median household income $81,808

Married 21% Single 79%

Owner Occupied 27% Renters 73%

Median 1 Bd/1 Bth Rent $1,664

Median 2Bd/1 Bth Rent $2,062

TOP JOB SECTORS: *

Management: 12.7% Healthcare: 4.7% Educational: 9.9% Engineering 4.4% Administrative: 9.7% Science 3.7% Sales: 8.8% Legal : 3.4% Entertainment 8.6% Social Services: 3.0% Business 7.9% Personal Care 2.8% Food Service: 5.8% Transportation 2.0% Computer: 5.4%

* https://statisticalatlas.com/neighborhood/Washington/Seattle/Eastlake/Occupations

600 University Street | Suite 2018 | Seattle, WA 98101 6 P 206.623.8880 | E [email protected] | ParagonREA.com Seattle Central Business District

Seattle is ranked 10th in the US as one of the fastest growing cities

Major Health Care: Harborview Medical Center, University of Washington Medical Center, Swedish Medical Center, Children’s Hospital, Virginia Mason Medical Center, Providence Medical Center and Group Health

Seattle Icons: Space Needle, Pike Place Market, South Lake Union, Seahawks, Mariners

Home to major universities such as University of Washington, Seattle University, Seattle Pacific University, Antioch University, City University, Seattle Art Institute, Cornish School of Arts

Headquarters to Amazon, Starbucks, Fred Hutchinson Cancer Research Center, Paul Allen Institute, Holland America Cruise Line, REI, Real Networks, Big Fish, Expedia (2018), Zillow, Redfin, F-5 Networks, Nordstrom’s, Boeing, Expeditors International, Payscale, DocuSign, Zulily

New Companies entering Seattle’s Market: Tableau, Facebook, Dropbox, Apple and Google

Amazon currently host’s 24,000 employees, and is projected to host an additional 47,000 more (total 71,000) by 2019

Amazon Projected to have over 10 million square feet of office space by 2019

600 University Street | Suite 2018 | Seattle, WA 98101 7 P 206.623.8880 | E [email protected] | ParagonREA.com Neighborhood Amenities

Food/Drink Shopping/Services Parks/Schools 15 4 2 1 Eastlake Bar and Grill 6 2 Le Fournil Bakery 24 26 3 Sushi Kappo Tamura 1 EASTLAKE 4 Lake Union Sea Ray 7 3 DEV SITE 5 6 Seattle Marina 7 Fairview Park 5 8 Mammoth

9 Roanoke Park 9 25 10 Pomodoro Ristorante Italiano 11 Starbucks 8 14 12 Pagliacci Pizza 10 12 13 13 Seattle Prepatory School 11 14 23 15 University of Washington 20 22 16 16 Serafina 17 Grand Central Bakery 18 Interlake Park 18 19 20 Patrick’s Fly Shop 21 Saint Mark’s Cathedral 17 22 Montlake Bicycle Shop 23 Monts Market 21 24 UW Medical Center 25 Montlake Boulevard Market 19 26 UW Light Rail Station

600 University Street | Suite 2018 | Seattle, WA 98101 8 P 206.623.8880 | E [email protected] | ParagonREA.com Sound Transit Link Light Rail

In November 1996, voters in King, Pierce, and Snohomish Counties approved increases in sales taxes and vehicle excise taxes to pay for a $3.9 billion transit package that included $1.7 billion for a light rail system, including Central Link and Tacoma Link. Central Link is a light rail line running between the University of Washington, downtown Seattle, the SoDo district, Seattle’s Rainier Valley, Tukwila, the Seattle–Tacoma International Airport in SeaTac and Angle Lake. The initial 13.9-mile segment of the line was opened on July 18, 2009. The line has since been expanded twice and spans 20.35 miles as of September 26, 2016. Northgate Link extension will connect the University District to Northgate. Northgate Link will travel in two tunnels from University of Washington station, the northern terminus of the University Link Extension, through underground stations at U District and Roosevelt towards Northgate, emerging on the east side of Interstate 5 and continuing on an elevated guideway to Northgate station. The extension was approved in 2008 and began construction in 2012. This line is expected to open for service in 2021. The East Link Extension is a planned Sound Transit Link Light Rail line, spanning about 14 miles from Downtown Seattle eastward to the city of Redmond. Construction of East Link began in 2016, and the line is scheduled to open for service to Overlake in 2023.An extension to downtown Redmond will open in 2024. An estimated 50,000 passengers will use East Link every day by 2030.[2]an enormous range of options for employment, education and entertainment for residents and visitors alike. The Lynnwood Link extension is a planned Link light rail extension traveling north from Northgate to Lynnwood. The 8.5-mile light rail extension includes stations in Lynnwood, Mountlake Terrace, and Shoreline along Interstate 5. Lynnwood Link extension is scheduled to begin construction in 2018 and open for service in 2024. Ridership is expected to be 63,000 to 74,000 daily in 2035.

600 University Street | Suite 2018 | Seattle, WA 98101 9 P 206.623.8880 | E [email protected] | ParagonREA.com Employment

Greater Seattle excels at the industries of the future - the region is a center of innovation and features some of the world’s top global brands. Our aerospace industry is one of the largest in the world, home to Boeing Commercial Airplanes and over 800 aerospace firms that employ 17% of all aerospace workers in the United States. Greater Seattle is also a leading center for information and communications technology, bolstered by industry pioneers such as Microsoft and Amazon. As a result, our region has emerged as a world leader in cloud computing and data visualization, and ranks 4th as a global startup hub ahead of New York and Boston.

>> Adobe >> Nordstrom >> Alaska Airlines >> Paccar >> Amazon >> RealNetworks >> Apple >> REI >> AT&T Wireless >> Russell Investments >> Boeing >> SpaceX >> Costco >> Starbucks >> Expedia, Inc. >> Symetra Financial >> Expeditors International >> Tableau Software >> F5 Networks >> T-Mobile >> Facebook >> Twitter >> Fred Hutchinson >> Uber >> Gates Foundation >> University of Washington >> Getty Images >> Virginia Mason >> Google >> Weyerhaeuser >> Microsoft >> Zillow >> Nintendo >> Zulilly

600 University Street | Suite 2018 | Seattle, WA 98101 10 P 206.623.8880 | E [email protected] | ParagonREA.com Map of Key Employers

EASTLAKE DEV SITE

ELLIOTT BAY

600 University Street | Suite 2018 | Seattle, WA 98101 11 P 206.623.8880 | E [email protected] | ParagonREA.com Employment Outlook

The Seattle metro area is currently characterized by positive job growth, with a 2.9% gain in employment, which represents an increase of 43,000 new jobs. Downtown Seattle ranks 12th among the 231 major employment markets in the U.S. for job density, and that ranking is expected to rise. In February 2015, the unemployment rate in Seattle, hit the “ideal” rate of 4.4%. Economists consider anything under 5% full employment. Employment at software publishers is up 4 percent from a year ago, edging out a 3.4 percent gain at hospitals. A main beneficiary is the retail sector, with year-over-year job growth of 5 percent. In nearby South Lake Union, Amazon’s new 3.3 million square foot headquarters is currently under construction. The project is estimated to bring an additional 23,000 Amazon employees to the area, bringing Amazon’s total employment near 50,000. Amazon is expected to occupy a total of 10 million square feet of office space by 2019. Other top area employers include F5 Networks, Zulily and the Bill and Melinda Gates Foundation which are all centrally located in the CBD.

600 University Street | Suite 2018 | Seattle, WA 98101 12 P 206.623.8880 | E [email protected] | ParagonREA.com Financial Analysis

3101 Eastlake Avenue E Rent (+NNN) Lease Term

EClip $850 N/A Eastlake Massage $1,800 N/A Blue Ribbon $1,000 11.30.2018 Apt 3105 $925 8.31.2018 Apt 3015A $1,475 6.30.2018 Apt 3015B $1,445 N/A Apt 3015C $1,350 10.31.2017 Apt 3015D Vacant N/A 3103 S Vacant N/A

Total Monthly Rent $8,845 Annual Scheduled Rent $106,140

3107 Eastlake Avenue E Rent (+NNN) Lease Term

Eastlake 3107 A $3,500 3.31.2019 * 3107 C $925 N/A Psychic - 3111 A $850 N/A Combined Gross Rents: 3111 C $1,050 N/A 3111 D $500 N/A 3101 Eastlake Ave E: $106,140 3107 Eastlake Ave E: $122,220 3115 A $1,360 N/A 3115 C $650 N/A Total Gross Rents: $228,360 3115 D $525 7.31.2018 Total Monthly Rent + NNN/Utilities $10,185 Annual Scheduled Rent $122,220 * 6 month notice to vacate

600 University Street | Suite 2018 | Seattle, WA 98101 13 P 206.623.8880 | E [email protected] | ParagonREA.com Development Potential

Development Analysis provided by Jeff Walls 206.466.1225 www.studio19architects.com

600 University Street | Suite 2018 | Seattle, WA 98101 14 P 206.623.8880 | E [email protected] | ParagonREA.com Development Potential

600 University Street | Suite 2018 | Seattle, WA 98101 15 P 206.623.8880 | E [email protected] | ParagonREA.com Site Photo

600 University Street | Suite 2018 | Seattle, WA 98101 16 P 206.623.8880 | E [email protected] | ParagonREA.com Site Photo

600 University Street | Suite 2018 | Seattle, WA 98101 17 P 206.623.8880 | E [email protected] | ParagonREA.com Sale Comparables

Property Lot Sales Price/Lot Sales Date Size Price Sq.Ft.

Eastlake Development Site 3101 - 3107 Eastlake Ave E 16,500 Unpriced TBD TBD 2 Seattle, WA

1. 1820 Boylston Ave 7,200 $4,775,000 $663.15 2.15.2017 3 Seattle, WA

2. 5260 University Way 7,440 $5,200,000 $698.92 2.24.2016 Seattle, WA

3. 4244 11th Ave NE 4,120 $1,850,000 $449.03 10.11.2016 EASTLAKE Seattle, WA DEV SITE

4. 601 E Pike St 9,000 $6,171,244 $685.69 7.17.2015 Seattle, WA

5. 1208 E Olive Way 14,418 $7,600,000 $448.38 7.29.2016 Seattle, WA

6. 206 Broadway Ave E 12,800 $6,350,000 $496.09 9.8.2017 1 Seattle, WA 5 7 7. 1732 - 1818 Broadway Sale 38,120 $26,684,000 $700.00 4 Seattle, WA Pending 6

600 University Street | Suite 2018 | Seattle, WA 98101 18 P 206.623.8880 | E [email protected] | ParagonREA.com Rent Comparables

Year Average Average Average Property Stories Units Built Size Rent Rent/Sq.Ft.

1. A.W. Larson Building 3206 Harvard Ave E 5 37 2017 533 $1,881 $3.53 Seattle, WA

2. East Howe Steps 1823 Eastlake Ave E 4 93 2017 632 $2,001 $3.17 Seattle, WA

3. Eastlake Flats 2820 Eastlake Ave E 7 110 2016 251 $1,047 $4.17 Seattle, WA

4. Gatsby 1145 10th Ave E 3 70 2014 812 $2,998 $3.69 Seattle, WA

5. Mark on 8th 285 8th Ave 7 174 2016 639 $2,323 $3.63 Seattle, WA

6. Studio 7 4209 7th Ave NE 5 75 2015 298 $1,125 $3.77 Seattle, WA

7. The Courtyard 4039 8th Ave NE 5 59 2015 250 $1,150 $4.60 Seattle, WA

600 University Street | Suite 2018 | Seattle, WA 98101 19 P 206.623.8880 | E [email protected] | ParagonREA.com Rent Comparables Map

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1. A.W. Larson Building 7 3206 Harvard Ave E Seattle, WA EASTLAKE 1 DEV SITE 2. East Howe Steps 1823 Eastlake Ave E Seattle, WA 3 3. Eastlake Flats 2820 Eastlake Ave E Seattle, WA 2 4. Gatsby 1145 10th Ave E 4 Seattle, WA

5. Mark on 8th 285 8th Ave Seattle, WA 6. Studio 7 4209 7th Ave NE Seattle, WA 7. The Courtyard 4039 8th Ave NE Seattle, WA 5

600 University Street | Suite 2018 | Seattle, WA 98101 20 P 206.623.8880 | E [email protected] | ParagonREA.com Paragon Real Estate Advisors

ABOUT PARAGON

Paragon Real Estate Advisors is the leading Seattle real estate investment firm for multi- family property sales in Washington State. We have accrued over $3 billion in sales and have closed nearly 1,700 successful real estate transactions. We are locally owned, client-focused and highly experienced. When it comes to apartments and investment real estate in the Puget Sound region, we are the smart choice to partner with.

At Paragon, we build long-term partnerships that help our clients reach their long- and short-term real estate investment goals while maintaining maximum profitability for them. Our brokers have an in-depth knowledge of the Washington state real estate market, particularly in the greater Seattle area and the I-5 corridor, that comes from more than 20 years’ experience in the industry. Paragon’s unique focus on sharing knowledge, teamwork and collaboration within the brokerage industry leverages our collective intellect for all our clients. Our brokers provide superior customer representation through our innovative and effective marketing campaigns, co-brokerage, skilled negotiations, and ongoing partnerships.

The information found in this offering memorandum 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.

600 University Street | Suite 2018 | Seattle, WA 98101 21 P 206.623.8880 | E [email protected] | ParagonREA.com