LE MAISON DE JARDIN 12 Units + Adjacent 5,000 Square Foot Lot • Portland, OR OFFERING MEMORANDUM

www.hfore.com • (503) 241.5541 INVESTMENT HIGHLIGHTS

Property Highlights LE MAISON DE JARDIN • Outstanding location 2238 SE Madison Street • Portland, OR 97214 • Top-of-the-market rents + • Beautifully designed units 12 1923 /- 5,025 TOTAL UNITS YEAR BUILT APPROX. NR SQ FT • High-end architectural finishes + • Tasteful historical character 0.23 52.17 /- 419 LOT SIZE (ACRES) DENSITY (UNITS PER ACRE) AVG UNIT SIZE (SQ FT)

2 HFO INVESTMENT REAL ESTATE INVESTMENT SUMMARY OFFERING SUMMARY

The property is being sold with the adjacent parcel of land. The parcel is 5,000 square feet ASSET SUMMARY and zoned R2.5. Le Maison de Jardin is a stable, highly desirable apartment community that will continue to differentiate itself from other apartments in the area for years to Property Le Maison de Jardin come and is a truly unique investment opportunity. Location 2238 SE Madison Street Le Maison de Jardin offers a rare opportunity to acquire a vintage apartment building in City, State Portland, 97214 one of Portland’s hippest neighborhoods. The property consists of ten studios and two County Multnomah one-bedroom units and an on-site laundry care center. Original hardwood floors and unique light fixtures make any tenant feel right at home. Year Built 1923 Total Units 12 The property is within walking distance of SE Hawthorne Boulevard. The property is also walkable to one of the city’s premier green spaces, Laurelhurst Park, and is a short jaunt Approximate Sq Ft 5,025 away from first-run films at the Cinemagic theater. Whether you are grabbing brunch at Average Unit Sq Ft 419 Jam or getting dinner at Castagna, the local food scene has something for everyone. PRICING Total Price $2,350,000 Building Price $2,100,000 Land Price $250,000 Per Unit $175,000 Per Sq Ft (Building) $417

UNIT MIX Tours and Inquiries: Unit Type Unit Count Avg Sq Ft Total Sq Ft % of Total Units All tours and inquiries regarding the Le Maison de Jardin are to be directed to HFO 0 Bedroom / 1 Bathroom 10 405 4,045 83.3% Investment Real Estate at (503) 241.5541. 1 Bedroom / 1 Bathroom 2 490 980 16.7% Total / Averages 12 419 5,025 100.0% Greg Frick [email protected] (971) 717.6332

LE MAISON DE JARDIN • 12 UNITS • PORTLAND, OR 3 4 HFO INVESTMENT REAL ESTATE LE MAISON DE JARDIN • 12 UNITS • PORTLAND, OR 5 LOCATION

WASHINGTON

VANCOUVER

11 min COL UMBIA RIVER 8 min 2 min

5 Portland Forest Park 99E International Airport OREGON 405 PORTLAND 84 HILLSBORO 26 LE MAISON DE JARDIN

205 26 GRESHAM 8 213 BEAVERTON 219 10 5

217 210 TIGARD 224 LAKE OSWEGO 212 CLACKAMAS

6 HFO INVESTMENT REAL ESTATE LIFESTYLE CONVENIENCES AND EMPLOYERS

NE Killingsworth St PARKROSE ALBERTA

NE Prescott St

The Grotto 205 5 NE 82nd Ave

NE Williams AveNE Williams NE Fremont St NE 15th Ave NE 33rd Ave MADISON SOUTH Park NE 42nd Ave

NE Knott St NE 102nd Ave NE 122nd Ave NE 24th Ave NE 57th Ave 99E Rose City NE Sandy Blvd Golf Course Grant Park NE Broadway St NE Halsey St

84 Gateway Shopping Center NE Glisan St

DOWNTOWN E Burnside StMONTAVILLA PORTLAND 213 SE Stark St NE 60th Ave Laurelhurst Park MT TABOR

SE Hawthorne Blvd Mall 205 Mt Tabor Park

SE Division St

Le Maison de Jardin SE Powell Blvd 26 Kelly Butte Natural Park SE Holgate Blvd

LE MAISON DE JARDIN • 12 UNITS • PORTLAND, OR 7 PORTLAND REGION Oregon’s largest city, Portland, APARTMENT MARKET The Portland Metro Area consistently ranks among the nation’s lowest for apartment vacancy rates is near the confluence of the according to the U.S. Census Bureau and other third-party services like REIS, MPF Research, and Willamette and Columbia Rivers. Axiometrics. The U.S. Census Bureau pegged Portland’s Q3 2018 vacancy rate at 4.5% and the U.S. average at 7.1%. The Portland Metro Area consists The Multifamily NW Apartment Report survey proved average Spring 2018-19 year-over-year of four counties: Multnomah, rent growth at 7.7%. Washington, Clackamas, and SKILLED WORKFORCE & STRONG EMPLOYMENT Clark County, Washington. In a 2018 WalletHub report comparing 150 of the largest U.S. metros, Portland is listed as the 15th most educated city in America. More than half of Multnomah County workers have a college degree, well ahead of the national average of 38.5%.

According to the State of Oregon’s Employment Department, Portland enjoys one of the fastest 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. DIVERSIFIED ECONOMY Portland is home to the headquarters of Fortune 500 companies Nike and Lithia Motors. Fortune 1000 companies headquartered here include Columbia Sportswear, Greenbrier Cos. and Portland General Electric. Fortune 500 companies based outside Oregon with major operations here are Precision Castparts and Intel.

Tech and software companies continue to relocate their operations here or open major outposts in Portland. These companies enjoy Portland’s educated workforce, affordable high quality of life, and a low cost of doing business compared to the Bay Area.

Companies which have opened major branches in Portland include Airbnb, Google, Squarespace, Mozilla, Simple, Survey Monkey, SalesForce and New Relic, Inc. Portland’s tech startup companies include Viewpoint, Jama Software, Thetus, Urban Airship, Acquia, Elemental Technologies, Act-On, Puppet Labs, and The Clymb.

8 HFO INVESTMENT REAL ESTATE PORTLAND MARKET SNAPSHOT PORTLAND METRO AREA The Portland Metro Area is one of 4.42% 38.3% 3.8% the strongest apartment markets Metro-area vacancy* Metro area renter- Unemployment rate occupied housing rate (June 2019) in the nation, as reflected in strong year-over-year rent growth and consistently tight vacancy. The area’s strong job market and high quality of life continues to attract $68,125 7.4% 48.2% Median household Year-over-year Portland residents age 25+ years new residents; approximately 65 income rent growth* (with a bachelor’s degree or higher) people move here per day. New apartment construction has not caught up to the housing demand created by in-migration.

21,345 4,474 #2 New Portland residents Portland residents for Oregon in Migration (2016-2018) per square mile in US*

*Multifamily NW Apartment Report (Oct. 2018-2019) **United Van Lines

LE MAISON DE JARDIN • 12 UNITS • PORTLAND, OR 9 PORTLAND RANKINGS

Portland consistently receives glowing reviews and rankings from the media.

2019 lists include: No.4 No.7 No.7 Best City for an Active Lifestyle Healthiest Cities to Live Best Cheap Destinations in the U.S. – Wallethub – – Thrillist.com – – U.S. News and World Report –

No.8 No.8 No.9 Best Place to Live in the U.S. Fittest Cities in America Best Foodie Cities in the USA – U.S. News and World Report – – CBS News – – U.S. News and World Report –

2018 lists include: No.1 No.1 No.3 No.4 No.5 Restaurant City of the Year Best Foodie City in America Healthiest City in the U.S. Best City for Biking Best Bike City in America – Bon Appetit – – Wallethub & Travelpulse – – Active.com – – Fast Company – – Bicycling Magazine – No.6 rank by Jetsetter

No.5 No.9 No.10 No.10 No.15 Fittest Cities in America Top City for Entrepreneurs & Most Entrepreneurial State Greenest City in America Most Educated City in – American College of Start-Ups – Amazon.com – – Newsweek – America Sports Medicine – – Business.org – – Wallethub – No.23 rank by CNBC

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

Nike’s two key competitors have a major local presence as well. Those employers include the North American headquarters of Adidas with 1,200 employees, and a new 70,000 SF outpost of Under Armour. Under Armour has moved 100 employees into an iconic former YMCA.

LE MAISON DE JARDIN • 12 UNITS • PORTLAND, OR 11 OPERATIONS ANALYSIS LE MAISON DE JARDIN • 12 UNITS • PORTLAND, OR

Income Current Scheduled Rents Projected Operations Note Scheduled Gross Rent $160,440 $13,370 $168,462 $14,039 1 Less: Vacancy/Credit Loss -$8,022 -$669 -5.0% -$8,423 -$702 -5.0% 2 Net Rental Income $152,418 $12,702 $160,039 $13,337 Other Income $13,416 $1,118 $13,416 $1,118 3 Includes: Laundry $1,307 $109 $1,307 $109 Includes: Parking $1,800 $150 $1,800 $150 Includes: Utility Billing (RUBs) $8,809 $734 $8,809 $734 Includes: Miscellaneous $1,500 $125 $1,500 $125 Gross Operating Income $165,834 $13,820 $173,455 $14,455 Expenses Projected Per Unit % GOI Projected Per Unit % GOI Operations Operations Real Estate Taxes $14,811 $1,234 8.9% $14,811 $1,234 8.5% 4 Insurance $4,717 $393 2.8% $4,717 $393 2.7% Total Utilities $11,319 $943 6.8% $11,319 $943 6.5% Fee Management $13,267 $1,106 8.0% $13,876 $1,156 8.0% 5 Landscaping $1,200 $100 0.7% $1,200 $100 0.7% Maintenance/Repairs $9,600 $800 5.8% $9,600 $800 5.5% Turnover $4,800 $400 2.9% $4,800 $400 2.8% Reserves $3,000 $250 1.8% $3,000 $250 1.7% 6 Total Expenses -$62,713 -$5,226 -37.8% -$63,323 -$5,277 -37% Net Operating Income (NOI) $103,121 $8,593 $110,132 $9,178

12 HFO INVESTMENT REAL ESTATE OPERATIONS ANALYSIS LE MAISON DE JARDIN • 12 UNITS • PORTLAND, OR

1. RENTS Rents are based on a September 2019 rent roll and average $1,114 per unit or $2.66 per sq ft. Projected rents are based on a 5% market-rate increase.

Average Scheduled Scheduled Rents Projected Rents Type Units Count Avg Sq Ft Projected Rents Rents per Sqft per Sq Ft 0 Bedroom / 1 Bathroom 1 380 $1,105 $2.91 $1,160 $3.05 0 Bedroom / 1 Bathroom 1 390 $1,095 $2.81 $1,150 $2.95 0 Bedroom / 1 Bathroom 3 400 $1,082 $2.70 $1,136 $2.84 0 Bedroom / 1 Bathroom 3 410 $1,082 $2.64 $1,136 $2.77 0 Bedroom / 1 Bathroom 1 420 $1,025 $2.44 $1,076 $2.56 0 Bedroom / 1 Bathroom 1 425 $1,065 $2.51 $1,118 $2.63 1 Bedroom / 1 Bathroom 2 490 $1,295 $2.64 $1,360 $2.78 Total / Average 12 419 $1,114 $2.66 $1,170 $2.79

2. VACANCY The projected operations include a market-rate vacancy of 5.0%. 3. OTHER INCOME Other Income includes laundry, parking, and miscellaneous charges. The property also has a fully implemented utility billback program, capturing nearly 78% of the property’s utility expenses.

LE MAISON DE JARDIN • 12 UNITS • PORTLAND, OR 13 OPERATIONS ANALYSIS LE MAISON DE JARDIN • 12 UNITS • PORTLAND, OR EXPENSES Le Maison de Jardin’s professional management reflects market-rate operations with minimally adjusted expenses. The following expenses impact overall operations.

4. PROPERTY TAXES Oregon’s property taxes are evaluated on a fiscal year starting TAX HISTORY July 1. In Oregon, property taxes are not reassessed on sale Tax Year and are limited to a 3.0% annual increase at the state level. 2018/2019 2019/2020 Property taxes paid prior to November 15 each year receive Account # a 3.0% discount. Le Maison de Jardin’s gross taxes for the apartments and adjacent lot total $15,269. For underwriting 2 Tax Lots $14,820 $15,269 purposes, projected operations include the property taxes Total $14,820 $15,269 for the 2019-2020 tax year with the 3.0% discount totaling % Change 2.94% $14,811.

5. MANAGEMENT FEE The management fee has been projected at 8.0% of GOI, which represents standard independent, third-party management costs for properties in the metro area similar to Le Maison de Jardin.

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 $3,000 annually.

14 HFO INVESTMENT REAL ESTATE LE MAISON DE JARDIN • 12 UNITS • PORTLAND, OR 15 QUESTIONS & TOUR REQUESTS: OFFER TERMS All inquiries, questions, or tour requests are to be directed to HFO Investment Real Estate at ASSET SUMMARY (503) 241.5541.

Property Le Maison de Jardin Please do not disturb the residents. Location 2238 SE Madison Street Greg Frick • [email protected] City, State Portland, Oregon 97214 Jack Stephens • [email protected] County Multnomah Lee Fehrenbacher • [email protected] Adam Smith • [email protected] Year Built 1923 Todd Tully • [email protected] Total Units 12 Khari Gates • [email protected] Approximate Sq Ft 5,025 Rand Hoffman • [email protected] Average Unit Sq Ft 419 HFO Investment Real Estate 2424 SE 11th Avenue Portland, Oregon 97214 PRICING www.hfore.com (503) 241.5541 Total Price $2,350,000 Fax: (503) 241.5548 Building Price $2,100,000 Brokers licensed in the States of Oregon and Washington. Land Price $250,000 Per Unit $175,000 Per Sq Ft (Building) $417

2424 SE 11th Avenue • Portland, OR 97214 www.hfore.com • Phone: (503) 241.5541

16 HFO INVESTMENT REAL ESTATE LE MAISON DE JARDIN • 12 UNITS • PORTLAND, OR 17 HFO Investment Real Estate Passion • Collaboration • Specialization

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