Riverstone Marketplace II

VANCOUVER, WASHINGTON

EXCELLENT SYNERGY WITH SEVERAL NATIONAL BRANDS INCLUDING NATURAL GROCERS, BANK OF AMERICA, AND PROVIDENCE MEDICAL PLAZA Overview

3205 & 3215 SE 192ND AVENUE, VANCOUVER, WA 98683 PAGE 5

Riverstone Marketplace II

Investment Summary LEASEABLE SF LAND AREA AVG CURRENT RENTS OCCUPANCY 14,623 SF 75,359 SF $29.03/SF 64%

YEAR BUILT PARKING SHADOW ANCHORS 2005 83 Spaces; Providence (NAP), 5.7/1,000 SF Natural Grocers (NAP)

$4,310,000 5.50% 9.00% PRICE CAP IN-PLACE BUILD-TO CAP

RIVERSTONE MARKETPLACE II is within the same development as Natural Grocers and a Providence Medical Plaza along a well-trafficked retail corridor. The Property offers two, high quality retail strips with considerable upside potential. The professional and personal service tenant mix at Riverstone Marketplace II is complemented by the strong daily needs draw created by the adjacent Natural Grocers and QFC. The growing and affluent submarket of East Vancouver is only five miles from the Portland International Airport and comprises the bulk of Vancouver’s growth and development.

Overview Investment Highlights

TWO AVAILABLE SUITES PROVIDE A POTENTIAL INVESTOR WITH MORE THAN 300 BASIS POINTS OF YIELD UPSIDE AFTER LEASE UP COSTS

The highlights

ALL TENANTS AT THE PROPERTY HAVE SCHEDULED RENT INCREASES OF 3% ANNUALLY.

A LARGE OFFICE COMPLEX AND THE DAILY-NEEDS CORRIDOR INCLUDING NATURAL GROCERS AND QFC ENHANCE STRONG TRAFFIC COUNTS ALONG THE GROWING RETAIL AND SERVICE AREA OFF OF HIGHWAY 14.

EXCELLENT SYNERGY WITH SEVERAL NATIONAL BRANDS INCLUDING NATURAL GROCERS, BANK OF AMERICA, PROVIDENCE MEDICAL PLAZA AND AN ADJACENT QFC ANCHORED CENTER. PAGE 7

THE AFFLUENT SUBMARKET RECOGNIZES SOME OF THE HIGHEST HOUSEHOLD INCOMES IN THE REGION AT NEARLY $110,000 ANNUALLY WITHIN A FIVE-MINUTE DRIVE TIME.

TWO SEPARATELY PARCELED RETAIL STRIPS PROVIDE AN OPPORTUNITY TO SPIN OFF INDEPENDENTLY FOLLOWING LEASE UP.

IN ONE OF THE FASTEST GROWING COUNTIES IN THE STATE, THE PROPERTY ALREADY SHOWCASES A TRADE AREA OF MORE THAN 200,000 RESIDENTS. Investment Highlights Site

RIVERSTONE MARKETPLACE II PAGE 9

SE 34TH STREET 11,734 VPD

18,674 VPD

SE 192ND AVENUE

Site Surrounding Retail Business summary

TOTAL 1-MILE 3-MILES 5-MILES

Businesses 206 1,570 5,535

Employees 5,189 23,539 83,272

Population 10,896 63,933 176,248

KEY 1-MILE 3-MILES 5-MILES

MAJOR RETAIL AT&T Fred Meyer QFC Big Lots Les Schwab Starbucks Bank of America Natural Grocers Wells Fargo Costco Wholesale New Seasons Market Columbia Credit Union Providence Health

MILL PLAIN CROSSING SHOPPING CENTER Chase Bank Home Depot Petsmart Cricket Wireless JC Penney Sally Beauty Discount Tire Key Bank Verizon Wireless H&R Block Lowe’s Walmart Supercenter

COLUMBIA CROSSING SHOPPING CENTER Bed Bath & Beyond Mattress Firm Ross Dress for Less Cost Plus World Market Michaels ULTA Beauty Kohl’s Pier 1 Imports COLUMBIA CROSSING SHOPPING CENTER MILL PLAIN CROSSING SHOPPING CENTER SE 192ND AVENUE

COLUMBIA TECH CENTER

18,674 VPD

RIVERSTONE MARKETPLACE II 11,734 VPD SE 34TH STREET

DEVELOPMENT NEWS: 84,000 Along 192nd Avenue, in close VPD proximity to the Property, Columbia 14 Palisades lifestyle community with 84 acres of residential, office, retail, LEWIS AND CLARK HWY hospitality and entertainment is currently in development. Click here for details.

14 Surrounding Retail 18,674 VPD SE 192ND AVENUE Site Plan

SE 34THSTREET 11,734 VPD

LEASEABLE SF 5.7/1,000 SF 83 SPACES; 14,623 ACRES 1.73 PAGE 13 AVAILABLE

AVAILABLE

SITE PLAN NOT TO SCALE

Site Plan Featured Photography PAGE 15

Featured Photography Income & Expense Financial Summary

IN-PLACE STABILIZED PRICE $4,310,000 $4,310,000 PLUS: LEASING COSTS $245,000 TOTAL INVESTMENT $4,555,000 CAPITALIZATION RATE 5.50% 9.00% OCCUPANCY 64% 100% PRICE PER FOOT $295 $311

CASH FLOW SUMMARY IN-PLACE STABILIZED SCHEDULED INCOME PER SF 1 Base Rent for the Period of: 1/1/2019 - 12/31/2019 $30.02 $273,437 $438,955 Rent Increases Over Base Rent $0.06 $916 $916 Operating Expense Reimbursement $7.85 $79,103 $114,812 Equals: Scheduled Gross Income $37.93 $353,456 $554,682 Current │ Proforma Vacancy 36% 5% ($1.90) ($27,734) Total Effective Gross Income (EGI) $36.04 $353,456 $526,948

OPERATING EXPENSES PER SF 1 CAMS $4.01 $58,584 $58,584 Property Taxes $2.24 $32,728 $32,728 Insurance $0.32 $4,742 $4,742 2 Management Fee 3.5% of EGI $1.28 $18,757 $18,757 Reserves $0.10 $1,462 $1,462 Total Operating Expenses $7.95 $116,274 $116,274

NET OPERATING INCOME $28.08 $237,182 $410,674

LEASING COSTS Tenant Improvement Allowance $30 SF $159,000 CAMs on Vacancy 1 Year $36,000 Leasing Commission 6% 5 Years $50,000 TOTAL LEASING COSTS $245,000

Notes: 1) NOTES:Based on stabilized occupancy. 2) Percentage based on Stabilized EGI. 1) Based on stabilized occupancy. 2) Percentage based on Stabilized EGI.

11/2/2018 [ ]

This information 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. Buyer must verify the information and bears all risk for any inaccuracies. PAGE 17

Rent roll

TO ACCESS THE FULL FINANCIAL SUMMARY INCLUDING RENT ROLL, PLEASE EXECUTE THIS FORM.

Financial Summary Comparable Rents SE 192ND AVENUE

2 3 5 4

RIVERSTONE MARKETPLACE 14 II

LEWIS AND CLARK HWYSE 34TH STREET 6

14 PAGE 19

RIVERSTONE MARKETPLACE II exhibits base rents in line with surrounding properties in the market. With growth and development continuing to push east, the Property continues to recognize new leasing opportunities as the corridor continues to develop.

Retail Rent Comps

1. MILL PLAIN RETAIL CENTER 2. CROSSROADS AT MILL PLAIN & 164TH 11909 SE Mill Plain Road 902 SE 164th Avenue RENT: $29-$42/SF NNN RENT: $25-$32/SF NNN YEAR BUILT: 2016 YEAR BUILT: 2013

3. STARBUCKS STRIP 4. FISHERS LANDING PLAZA 918 SE 164th Avenue 16415 SE 15th Avenue RENT: $32-$38/SF NNN RENT: $19-$25/SF NNN YEAR BUILT: 2014 YEAR BUILT: 2008

5. 192ND PLAZA STATION 6. NATURAL GROCERS 1905 SE 192nd Avenue 3317 SE 192nd Avenue RENT: $27-$35/SF NNN RENT: $28/SF NNN YEAR BUILT: 2012 YEAR BUILT: 2017

Comparable Rents Questions & Answers PAGE 21

Q: HAVE THERE BEEN ANY ENVIRONMENTAL STUDIES DONE AT THE PROPERTY? A: Yes, a Phase I site assessment was done in 2005, prior to construction and returned no evidence of any recognized environmental condition (REC) and issued a conclusion that no further action was necessary.

Q: DO ANY TENANTS REPORT SALES? A: No tenants at Riverstone Marketplace II are required to

Q & A furnish sales reports.

Q: IS THERE ANYTHING CUMBERSOME IN THE CC&R’S? A: No, the CC&R’s provide easements for vehicle and pedestrian access over and across the entryway, driveways and sidewalks. There is also a non- exclusive easement in place for parking over and across all parcels except the grocery parcel.

Questions & Answers Location Vancouver, Washington

VANCOUVER is the fourth largest city in Washington state and is situated on the southernmost border, alongside the Columbia River. The affordability of Vancouver in relation to Portland just across the river is a huge driving factor of the economy, and has prompted annual growth for the last ten years with a near record-low unemployment rate, making it the fastest-growing county in the Portland Metro area.

CLARK COUNTY ADDS JOBS AT TORRID PACE Vancouver added 8,200 jobs to their workforce in 2017, an over 5% increase over the last 12 months. The increase in jobs is well above the national rate and double what the strong Portland metro area recognized over the same period. To learn more, click here. Multi-family PAGE 23 Development

TAX INCENTIVES ARE FUELING MULTI-FAMILY DEVELOPMENT as Clark County is recognizing an influx of multi-family development projects after offering tax incentives to developers. The significant increase in multi-family development will provide much needed units to combat a 2% vacancy rate in Vancouver, among the lowest in the country. To learn more, click here.

VANCOUVER’S HISTORIC WATERFRONT Major will soon be home to jobs, restaurants, Development shops, housing, a hotel and a park as the new development reconnects 35 acres along the Columbia River to the city’s historic core. The project includes a maximum of 3,300 residential units, approximately 1 million square feet of office, and retail space for restaurants, specialty shops and services. Learn more here.

Home Depot Expansion

Home Depot will be expanding their corporate presence in Vancouver with a 45,000 square foot facility that will house their new Quote Center. The expansion will add more than 200 jobs and will be part of the new 22-acre Convene development which will have up to 400,000 SF of office and retail. To learn more, click here. Demographics

KEY 5 MINS 10 MINS 15 MINS

Distance Seattle, Portland, to Washington Oregon

129166 MILES 16313 MILES MILES 2 HRS 3441 MINSMINS 325 HRS MINS 22 MINS PAGE 25

Drive time

POPULATION

5 MINS 10 MINS 15 MINS

2010 20,060 71,178 191,437

2018 23,699 80,672 216,500

2023 25,996 86,862 233,088

2018 HH INCOME

5 MINS 10 MINS 15 MINS

Average $107,320 $105,609 $87,757

Median $83,913 $79,957 $64,617

459,495

CLARK COUNTY POPULATION (ESTIMATED)

Demographics Contact Us We’d love to hear from you.

MICHAEL HORWITZ KEVIN ADATTO [email protected] [email protected] PH: 503.675.8381 PH: 503.675.7726

SCOTT FRANK [email protected] PH: 503.675.8383

The information in this Executive Summary 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. Buyer must verify the information and bears all risk for any inaccuracies. All rights reserved to Capital Pacific, LLC.