Appraisal Report

R E A L E STATE A PPRAISAL R EPORT

VALUATION SERVICES Real Estate Appraisal Consulting Litigation Estate Planning Feasibility Analysis Rent Surveys

PROPERTY TYPES Land Subdivisions Multi-Family Single-Family (Photo taken July 3, 2019, #12217-98) Industrial Office Medical Retail F O R M E R M I C R O S O F T B UILDING Public 26755 SW 95th Avenue Religious Parks / Open Space Wilsonville, Oregon 97070 Farms / Agricultural Specialty R E P A R E D OR P F Brady Ricks, Real Estate Services Manager Oregon Department of Administrative Services SERVING 1225 Ferry Street SE, U100 Oregon Salem, Oregon 97301 Washington Idaho Northern California P R E P A R E D B Y

John C.A. Gillem Powell Banz Valuation, LLC Jonathan B. Banz, MAI 201 Ferry Street SE, Suite 300 PBV File Number: P191319 Salem, Oregon 97301 (503) 371-2403 voice (503) 371-2613 fax www.powellbanz.com E F F E C T I V E D ATE O F V ALUE As Is Date of Value: July 3, 2019

Powell Banz Valuation,LLC L L C I n c

July 16, 2019

Brady Ricks, Real Estate Services Manager Oregon Department of Administrative Services 1225 Ferry Street SE, U100 Salem, Oregon 97301

RE: FORMER MICROSOFT BUILDING 26755 SW 95th Avenue Wilsonville, Oregon 97070

Dear Mr. Ricks:

As requested, the captioned property has been valued using generally accepted appraisal principles and practices. This appraisal report is intended to comply with the development and report requirements of the Uniform Standards of Professional Appraisal Practice (USPAP) and the Appraisal Institute. A copy of your professional service agreement is included in the Addenda. The subject is identified as a 175,600 SF manufacturing warehouse located on 425,146 SF (9.76 AC) of industrially zoned land in Wilsonville, Oregon. The improvements were formerly occupied by Microsoft for the design and manufacturing of the Surface Hub tablet. The building is equipped with a corporate style Class-A office, manufacturing floor, clean rooms, labs and shipping/receiving warehouse. We have performed no services as appraisers or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this agreement.

201 Ferry Street SE, Suite 300, Salem, Oregon 97301 Voice: 503.371.2403 / Fax: 503.371.2613 [email protected]

Brady Ricks July 16, 2019 Oregon Department of Administrative Services Page 2

Based upon our investigation and analysis of available information, the concluded value under the requested scenario is:

MARKET VALUE SCENARIOS DATE VALUE “As Is” Value – Fee Simple July 3, 2019 $23,950,000 Estimated Marketing/Exposure Time Approximately One year

This appraisal is subject to the conditions and comments presented in this report. If any questions arise concerning this report, please contact the undersigned.

Sincerely,

POWELL BANZ VALUATION, LLC

John C. A. Gillem OR State Certified General Appraiser No. C001372 Expiration Date: October 31, 2020

Jonathan B. Banz, MAI OR State Certified General Appraiser No. C000896 Expiration Date: June 30, 2020

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Appraisal Report P191319

Transmittal Letter INTRODUCTION Executive Summary ...... 1 Preliminary Appraisal Information ...... 2 Assumptions and Limiting Conditions ...... 8 DESCRIPTION Subject Maps ...... 11 Description ...... 15 Subject Photographs ...... 30 Building Diagram ...... 50 MARKET ANALYSIS/HIGHEST & BEST USE Market Analysis/Highest & Best Use ...... 51 VALUATION METHODS Valuation Methods ...... 60 INCOME APPROACH Income Approach ...... 62 Lease Comparable Tabulation Chart and Adjustment Grid ...... 67 Lease Comparable Maps ...... 68 Income Approach Summation Table ...... 73 SALES COMPARISON APPROACH Sales Comparison Approach ...... 74 Improved Sales Tabulation Chart and Adjustment Grid ...... 78 Improved Sales Maps ...... 79 ANALYSIS OF VALUE CONCLUSIONS Analysis of Value Conclusions ...... 80 CERTIFICATION OF APPRAISAL Certification of Appraisal ...... 81

ADDENDA Professional Service Agreement Taxes, Assessment Data, Deed & Legal Description Purchase and Sale Agreement Regional Description Appraiser Qualifications Appraiser Certifications

PROPERTY INFORMATION Property Name: Former Microsoft Building Address: 26755 SW 95th Avenue Wilsonville, Oregon 97070 Tax Account Number: 01420000 Map/Tax Lot: 31W11 1903 Property Type: Industrial Current Use: Specialty Manufacturing Proposed Use: N/A Owner of Record: North Wilsonville Associates

BUILDING CHARACTERISTICS Number of Buildings: 1 Number of Tenants: To be owner occupied by buyer Gross Building Area: 175,600 SF Footprint Area: 162,600 SF Percent Occupied: 100.00% upon closing Year Built: 1995/2015 renovation Clear Heights 26 feet Condition: Very Good Substantial Deferred Maintenance: None

SITE CHARACTERISTICS Land Area: 425,146 SF (9.76 AC) Zoning Designation: PDI – Planned Development Industrial Conforming Use: Yes

HIGHEST AND BEST USE As if Vacant: Industrial: distribution oriented use As Improved: Existing improvements Excess / Surplus Land: None

VALUATION INFORMATION Site Valuation: Not Presented Cost Approach: Not Presented Income Approach: $24,100,000 Sales Comparison Approach: $23,705,000

VALUE CONCLUSION Effective Date of Value Value Conclusion Concluded “As Is” Market Value: July 3, 2019 $23,950,000 Allocation for Furniture, Fixtures and Equipment: None

SCOPE OF WORK Scope of Work is defined in 2018-2019 USPAP as “the type and extent of research and analyses in an assignment.” The scope of work addresses the application and extent of the development process. It can include, but is not limited to: the extent to which the property is identified, the extent to which tangible property is inspected, the type and extent of data researched and the type and extent of analyses applied to arrive at opinions or conclusions. The seven items used in defining the scope of work and the proposed solution are discussed in detail below: This appraisal report is designed to inform the reader of all factors influencing the property’s value in a clear and concise manner. The Preliminary Appraisal Information sections provide an overview of the property and general information. The Description section starts with general regional issues and proceeds to more specific issues directly related to the property. The Highest and Best Use section establishes the premise upon which the property is valued. The goal of the appraisers is to produce a credible value conclusion. Credible is defined in 2018-2019 USPAP as “worthy of belief.” In order to conclude a credible market value opinion, a meeting of the minds between the client and appraisers determined that the Valuation section focuses on the "as is" market value of the fee simple interest in the subject property. It describes the Income Capitalization and Sales Comparison Approaches, and includes comparable information, application of market information to the subject, and valuation analysis. The approaches utilized are reconciled into final value conclusions as applicable. All comparable data has been verified by either a party to the transaction or an agent, unless otherwise identified. Supporting information is attached in the Addenda.

CLIENT AND INTENDED USER The client for this appraisal is the Oregon Department of Administrative Services.

OTHER INTENDED USERS Other intended users may include the client’s regulatory agencies, legal and accounting professionals.

INTENDED USE The purpose of this appraisal is to estimate market values, in fee simple, under the applicable scenarios, as described in this report. Without prior written approval from the authors, the intended use of this report is limited to decision-making regarding an acquisition of the subject property by the client. All other uses are expressly prohibited. Reliance on this report by anyone other than the client for a purpose not set forth above is prohibited. The authors’ responsibility is limited to the client. If you are not the stated intended user contact our office to have an appraisal customized for your needs.

TYPE OF VALUE The “As Is” Value represents the value of the subject property, in its current status as of the date of inspection.

INSPECTION DATE July 3, 2019

EFFECTIVE DATE OF VALUE As Is Value: July 3, 2019

DATE OF REPORT July 16, 2019

PROPERTY CHARACTERISTICS The subject is identified as a 175,600 SF manufacturing warehouse located on 425,146 SF (9.76 AC) of industrially zoned land in Wilsonville, Oregon. The improvements were formerly occupied by Microsoft for the design and manufacturing of the Surface Hub tablet. The building is equipped with a corporate style Class-A office, manufacturing floor, clean rooms, labs and shipping/receiving warehouse.

ASSIGNMENT CONDITIONS  An interior and exterior inspection of the subject.

 Interviewing the subject's prospective buyer and listing agent.

 Inspecting of the subject property neighborhood.

 Gathering and confirming lease comparables and improved sales from the immediate area and competing marketplaces.

 Inspecting the exterior of all comparables utilized. John C.A. Gillem inspected the exterior of all lease and sale comparables in person or via photographs.

 Highest and best use analysis.

 The application of the Income Capitalization and Sales Comparison Approaches to arrive at an indication of value for the subject property.

 A review of the written report.

DEFINITION OF MARKET VALUE This definition is in compliance with the OCC (Office of the Comptroller of the Currency), FDIC (Federal Deposit Insurance Corporation), FIRREA (Federal Institutions Reform, Recovery, and Enforcement Act), and USPAP (Uniform Standards of Professional Appraisal Practice) as adopted by the Appraisal Foundation and the Appraisal Institute. This definition complies with the 2018-2019 USPAP Regulations (P. 5). Market Value, as defined by The Appraisal of Real Estate, 14th Edition as published by the Appraisal Institute is: “The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition are the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. Buyer and seller are typically motivated; 2. Both parties are well informed or well advised, and acting in what they consider their best interests; 3. A reasonable time is allowed for exposure in the open market; 4. Payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; and 5. The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.”1

PROPERTY RIGHTS APPRAISED Fee Simple Estate, defined in The Dictionary of Real Estate Appraisal, Sixth Edition (2015), Appraisal Institute, as: Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.

SPECIFIED FINANCING Cash to seller, with or without financing; considered to be cash equivalent.

1 The Appraisal of Real Estate, Fourteenth Edition. Chicago: Appraisal Institute, 2013.

OWNERSHIP AND SALES HISTORY ANALYSIS According to Clackamas County Assessor’s records, the subject property is currently vested under the ownership of North Wilsonville Associates. The most recent transaction occurred June 26, 1998 for a recorded consideration of $1,102,000. No other transactions involving the subject have occurred in the last three years, but the property is currently pending sale. Pending Sale – A sale is currently pending between North Wilsonville Associates (Grantor) and the State of Oregon and/or assigns (Grantee). The Purchase and Sale Agreement dated June 18, 2019 reflects a pending sale price of $23,950,000 ($136.39 of NRA), with $250,000 paid in earnest money and the balance paid in cash upon closing. The sale is reportedly required to close before January 3, 2020. Note that the seller was in the process of installing an elevator to serve the second floor office mezzanine before an agreement was reached to sell the property. As a condition of the sale, the installation of the elevator will be completed prior to the closing date. The agreed upon purchase price reflects the installation of the elevator; no adjustment or concessions are necessary. In addition, the purchase price includes some of the furniture (chairs and other items like sofas) on the premise. No allocation was made for the furniture, but the parties revealed the price associated with the furniture would be very minimal relative to the overall purchase price. Note, our value includes real estate only. Stu Peterson with Macadam Forbes marketed the property for lease for approximately one year prior to the pending sale. Mr. Peterson noted that there were several offers to lease the property, but ultimately all fell through. Asking rate was $0.90 per SF (NNN). Asking price with the current prospective buyer started at $25 million and was negotiated down from there. There was also an offer to purchase the property for $22 million from a local manufacturing company, but the sellers settled on the offer from the State of Oregon. Based on this information, it appears the pending sale is arm’s-length. In addition, considering applicable data and market trends detailed in this report, the agreed upon purchase price is market based.

ASSESSMENT AND TAX INFORMATION Annual real estate taxes levied by the Clackamas County Assessor’s Office are summarized on the following table: Tax Real Market Value Assessed 2018/2019 Tax Account Tax Lot Land Improvements Total Value (M50) Taxes Rate 1420000 1903 $1,744,120 $17,608,080 $19,352,200 $18,438,055 $332,631.66 $18.0405 Source: Clackamas County Assessor's Office RMV as of July 2018, certified October 2018 by Clackamas County The subject taxes have been paid in full, according to county records. In May 1997 Oregon voters approved Ballot Measure 50, which is a property tax limitation. The maximum assessed value reported above reflects a 10% deduction from the 1995/96 assessed value and subsequent increases after 1998/99 of 3% per year plus bonded indebtedness. The Oregon State Tax rolls turned July 1, 2019 but will not be reported until October 15, 2019. Applying the maximum 3.00% increase to the 2018/2019 taxes results in an estimated total 2019/2020 tax of $342,610.61.

LEGAL DESCRIPTION Please refer to the Addenda for a full legal description.

INSPECTION Date of Inspection: July 3, 2019 Property Representative: Jennifer Blake, State of Oregon Powell Banz Valuation, LLC: Jonathan B. Banz, MAI John C.A. Gillem Extent of Inspection: A physical interior and exterior inspection was performed.

SOURCES OF INFORMATION The following sources were contacted to obtain relevant information: Source Information

Stu Peterson, Listing Agent Subject data. Clackamas County Assessor's Office Subject data; tax information. City of Wilsonville Planning Department Zoning information. Realquest Subject data, comparable research. Multiple brokers and real estate professionals Local area data; comparable confirmation. Willamette Valley Multiple Listing Service Comparable research. Regional Multiple Listing Service Comparable research. LoopNet Comparable research. CoStar Comparable research. County Deed Records Comparable research.

COMPETENCY RULE We are aware of the competency rule as detailed in USPAP, and with our understanding, we possess the education, knowledge, technical skills, and practical experience to complete this assignment competently, in conformance with the stated regulations. We have appraised numerous manufacturing related properties in the Willamette Valley and throughout the State of Oregon in recent years.

PERSONAL PROPERTY, FIXTURES, AND INTANGIBLE ITEMS No personal property, trade fixtures, or intangible items were included in this valuation.

USE OF RECOGNIZED APPRAISAL APPROACHES This report utilizes the Income Capitalization and Sales Comparison Approaches to value. The Cost Approach is reliable when the improvements are new, nearly new or proposed. The subject was built in 1995 and fully remodeled in 2015. The Cost Approach was considered, but ultimately not developed due to the age of the improvements and the subjective nature of reliably estimating depreciation, which may conclude a value inconsistent with the primary approaches. The exclusion of this approach does not compromise the validity of the value conclusions contained herein.

UNAVAILABILITY OF INFORMATION All information necessary to develop an estimate of value of the subject property was available to the appraisers.

EXPOSURE TIME AND MARKETING PERIOD Exposure time is defined within the 2018-2019 USPAP, as: The estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective estimate based upon an analysis of past events assuming a competitive and open market. Exposure time is best established upon the experience of recent comparable sales. The sales indicate a standard exposure period of approximately one year for appropriately priced investment properties. Exposure period data was limited for the comparables utilized in the Sales Comparison Approach. Comparable 1 was marketed for 155 days, while Comparable 5 has been listed for 287 days. Exposure time for the remaining comparables was not reported. Given the subject’s specialized design and larger size, an exposure period of approximately one year is reasonable. Marketing period is very similar to exposure time, but reflects a projected time period to sell the property, rather than a retrospective estimate. As such, a similar time period of approximately one year is estimated for the subject's marketing period.

This appraisal is subject to the following assumptions and limiting conditions:

HYPOTHETICAL CONDITIONS A hypothetical condition is a condition that is contrary to the facts, and yet will be used to value a property. An example of a hypothetical condition would be assuming a larger amount of land than actually exists to arrive at a value. No hypothetical conditions were assumed in this analysis.

EXTRAORDINARY ASSUMPTIONS An extraordinary assumption is an assumption made that does not exist, but could reasonably exist. No extraordinary assumptions were made in this analysis.

ORDINARY ASSUMPTIONS The analysis assumes that the Clackamas County Assessor’s office legal description accurately represents the subject property. A survey has not been provided to the appraisers. If further verification is required, a survey by a registered surveyor is advised. We assume no responsibility for matters legal in character, nor do we render any opinion as to title, which is assumed to be marketable. All existing liens, encumbrances, and assessments have been disregarded, unless otherwise noted, and the property is appraised as though free and clear, under responsible ownership, and competent management. The exhibits in this report are included to assist the reader in visualizing the property. We have made no survey of the property and assume no responsibility in connection with such matters. Unless otherwise noted herein, it is assumed that there are no encroachments, zoning, or restrictive violations pertinent to the subject property. This report is not a real property inspection; the appraisers only performed a visual inspection of accessible areas and this appraisal cannot be relied upon to disclose conditions and/or defects in the property. The appraisers assume no responsibility for determining if the property requires environmental approval by the appropriate governing agencies, nor if it is in violation thereof, unless noted. Information presented in this report has been obtained from reliable sources, and it is assumed that the information is accurate. This report shall be used for its intended purpose only, and by the parties to whom it is addressed. Possession of the report does not include the right of publication. Simply because a borrower or third party may receive a copy of the appraisal, does not mean that the borrower or third party is an Intended User as that term is defined in USPAP.

The appraisers may not be required to give testimony or to appear in court by reason of this appraisal, with reference to the property in question, unless prior arrangements have been made. The statements of value and all conclusions shall apply as of the dates shown herein. The appraisers have no present or contemplated future interest in the property that is not specifically disclosed in this report. Neither all, nor any part, of the contents of this report shall be conveyed to the public through advertising, public relations, news, sales, or other media without the written consent or approval of the authors. This applies particularly to value conclusions and to the identity of the appraisers and the firm with which the appraisers are connected. This report must be used in its entirety. Reliance on any portion of the report independent of others may lead the reader to erroneous conclusions regarding the property values. No portion of the report stands alone without approval from the authors. The valuation stated herein assumes professional management and operation of the building(s) throughout the lifetime of the improvements, with an adequate maintenance and repair program. The valuation is based on the projection that the improvements will maintain a stabilized occupancy level over its economic life, with tenants paying market level rents. The liability of Powell Banz Valuation, LLC and employees is limited to the client only and only up to the amount of the fee actually received for the assignment. Further, there is no accountability, obligation, or liability to any third party. If this report is placed in the hands of anyone other than the client, the client shall make such party aware of all limiting conditions and assumptions of the assignment and related discussions. The appraisers are in no way responsible for any costs incurred to discover or correct any deficiency in the property. The appraisers assume that there are no hidden or unapparent conditions of the property, subsoil, or structures that would render it more or less valuable. In the case of limited partnerships or syndication offerings or stock offerings in real estate, the client agrees that in case of lawsuit (brought by lender, partner, or part owner in any form of ownership, tenant, or any other party), any and all awards, settlements, or cost, regardless of outcome; the client will hold Powell Banz Valuation, LLC completely harmless. The appraisers are not qualified to detect the presence of toxic or hazardous substances or materials which may influence or be associated with the property or any adjacent properties. We have made no investigation or analysis as to the presence of such materials, and expressly disclaim any duty to note the presence of such materials. Therefore, irrespective of any degree of fault, Powell Banz Valuation, LLC and its principals, agents, and employees, shall not be liable for costs, expenses, damages, assessments, or penalties, or diminution in value, property damage, or personal injury (including death) resulting from or otherwise attributable to toxic or hazardous substances or materials, including without limitation hazardous waste, asbestos material, formaldehyde, or any smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals, liquids, solids, or gasses, waste materials or other irritants, contaminants, or pollutants.

The appraisers assume no responsibility for determining if the subject property complies with the Americans with Disabilities Act (ADA), which prescribes specific building standards which may be applied differently to different buildings, depending on such factors as building age, historical significance, amenability to improvement, and costs of renovation. Powell Banz Valuation, LLC its principals, agents, and employees, shall not be liable for any costs, expenses, assessments, penalties, or diminution in value resulting from non-compliance. Except as otherwise noted herein, this appraisal assumes that the subject complies with all ADA standards appropriate to the subject improvements; if the subject is not in compliance, the eventual renovation costs and/or penalties would negatively impact the present value of the subject. If the necessary renovation costs, time period needed for renovation, and penalties for non-compliance (if any) were known today, appropriate deductions would be made to the value conclusion(s) reported herein.

AERIAL PHOTOGRAPH – GOOGLE EARTH (VIEW NORTH)

REGIONAL DESCRIPTION Please see the Addenda for a detailed description of the Portland Metropolitan Statistical Area (MSA), which includes Wilsonville.

NEIGHBORHOOD DESCRIPTION A neighborhood is defined as a geographic area characterized by a similarity of users and/or uses within which any change has a direct and immediate effect on the subject and its value or marketability. The subject neighborhood is identified as Wilsonville, a portion of the Portland/Vancouver Metropolitan Statistical Area (MSA). Wilsonville is located approximately 17 miles south of the Portland central business district. The market area includes industrial, commercial and residential components bordered by the Willamette River on the south and the Wilsonville city limits on the east, west, and north. Incorporated in 1968, Wilsonville's population has grown to 25,250 residents, according to certified July 2018 population estimates (most recent data available, Portland State Population Research Center).

COMMERCIAL DEVELOPMENT Commercial development in Wilsonville is clustered near major intersections off Interstate- 5 in three distinct development areas: (1) the original CBD located along Wilsonville Road, west of I-5, (2) the Town Center commercial area located east of I-5 and on the north and south sides of Wilsonville Road, and (3) east of I-5 north and south of Elligsen Road. The original CBD area (Wilsonville Old Town Square) includes a newer U.S. Post Office, an older fire station, and numerous freeway-oriented businesses including service stations, a Burger King restaurant, a Ram Restaurant and Brewery, and numerous in-line retail centers including the 18,409 square foot Riverwood Center and the 40,000 square foot Wilsonville Shopping Center.

In 2011, Fred Meyer opened a 145,000 SF retail store and garden center in Wilsonville Old Town Square. The complex is located at the intersection of Wilsonville Road and Boones Ferry Road and occupies a 17.8 acre site. The center has revitalized the CBD area and reflects stabilized operations. The complex includes retail/office buildings (Great Clips, Subway, Smiles Dentistry, Qdoba, Chase bank, etc.), a sit-down restaurant (Oswego Grill), a 52-unit multi-family residential building, and the renovation of the historic United Methodist Church as the McMenamin’s Old Church and Pub. The pub is a sit-down restaurant and bar, and the church building is utilized as an event center. WOW! Burger reportedly closed in October 2018. To the south of the Old Town Square, Wilsonville Subaru celebrated a grand opening in March 2017. The car dealership building is over 92,000 SF and is the largest Subaru dealership in the U.S. Car shoppers can browse through a selection of new and pre- owned Subaru vehicles housed in the dealership’s indoor facility. To the west of Old Town Square, Albertson’s grocery store recently closed. The Town Center commercial area is best characterized as a master planned, developing retail, office and public service area located east of Interstate 5. Original development began in 1981 at the southern portion of this neighborhood near Wilsonville Road and included retail and office development. New development has been substantial over the years and includes: (1) the 137,000 square foot Wilsonville Town Center anchored by Rite Aid and Thriftway, (2) a Clackamas Community College satellite facility, (3) a church, (4) Les Schwab Tire Center, (5) the 64-room GuestHouse Inn & Suites, and (6) a 159,400 square foot retail development. Other notable developments include the Wilsonville City Hall, municipal library, U.S. Post Office, a Legacy-operated medical building, several privately operated dental buildings, a nine-screen movie theater, and a Fun Park with batting cages, putt-putt golf course, etc. Teufel Village is a mixed-use development consisting of a 15-building, 127,000 square foot retail development fronting Wilsonville Road. It also includes a substantial multi-family apartment component located in the rear half of the project. The main concentration of commercial development in the city is located in the Town Center Loop area. The Parkway Center and Stafford Park areas are located east of I-5 and south and north of Elligsen Road, respectively. The Parkway Center is a light industrial and commercial development area located east of I-5 north and south of Elligsen Road. Notable development in this area includes multiple automobile dealerships. The Burns Brothers Truck stop which included a motel, restaurant, some retail services, a fuel station and a truck repair shop was closed and the improvements demolished with redevelopment as a 400,000 +/- square foot Argyle Square shopping center anchored by Costco and Target. Several pad sites benefit from Interstate frontage and are primarily improved with fast food restaurants and service related businesses. The area also includes a large concentration of campus-style office development. The I- 5 Corporate Park is located northwest of the Mentor Graphics Campus and southwest of the Xerox Campus. The original project included 300,000 SF of office space and 100,000 SF of manufacturing space (previously InFocus). Declining market conditions encouraged the developer to revise the plans for Phase 3 within the project. The office building was scheduled to include a 95,000 SF three-story office building. Plan revisions eliminated the third floor, reducing the building size to 70,020 SF.

INDUSTRIAL DEVELOPMENT Wilsonville includes a large concentration of industrial and flex development. While industrial properties have suffered higher vacancies in the more immediate Portland area, patterns of industrial growth are changing. The outer ring of metro communities, such as Wilsonville, have steadily enjoyed a growth in industrial properties and gained industrial jobs. To help support the demand for industrial and flex property, the Day Road Design Overlay District was adopted. It is an overlay over the Coffee Creek I Regionally Significant Industrial Area and encourages multi-story buildings in a campus type setting. This type of development is attractive to industries with a high employee per acre demand, such as Xerox, Mentor Graphics, Rockwell Collins, etc. The overlay also allows a mix of building types within one or more parcels.

RESIDENTIAL DEVELOPMENT Several new multi and single-family residential projects have been developed over the past few years in response to the region’s expanding employment base. The largest developing residential project within the Wilsonville market area is Villebois. The 480-acre +/- planned unit development includes single and multi-family residential components, as well as a commercial village center with office and retail tenants, and roughly 160 acres of parks and open space.

According to the Villebois Village Master Plan, the development offers a complete community atmosphere with a vibrant village center. The scope of the project adds over 2,500 residential units upon completion. There is a wide variety of housing choices and architecture is above average when compared to other more standardized residential developments throughout the metro area. While much of the property has been improved, the larger development is still experiencing build out.

Slowing residential construction during the recession resulted in a lack of demand for the supporting commercial (village center) component. The project was originally developed by Costa Pacific Communities. In 2009, Rudy Kadlub, CEO, indicated that the retail component of Villebois could not attract retailers without additional supporting residential development. Mr. Kadlub acknowledged that the supply of retailers will be slim as the market continued to recover. However, in the past several years demand for the remaining residential land increased and vertical construction has commenced in full force. The commercial component should follow suit in the mid-term. In July of 2017, the City of Wilsonville adopted the 181 AC Frog Pond West Master Plan, which is planned for 452 to 571 residential units and a future school. Ground-breaking on the first phases of the project occurred in mid-2018.

5TH STREET TO KINSMAN ROAD EXTENSION PROJECT The main infrastructure project in Wilsonville is the proposed 5th Street to Kinsman Road Extension Project. SW Boones Ferry Road between Bailey Street and 5th Street will be re-designed, SW 5th Street will be extended west to Arrowhead Creek Lane, and SW Kinsman Road will be extended south from Wilsonville Road to insect with SW 5th Street. The project will also include two creek crossings, an at-grade rail crossing and an extension of the Ice Age Tonquin Trail to connect with SW Boones Ferry Road.

CONCLUSION In summary, Wilsonville is a bedroom community located along the I-5 corridor within the Portland MSA. The area includes a variety of existing and developing commercial and residential uses that benefit from the close proximity to Portland and other nearby suburban communities.

SITE DESCRIPTION Hazardous Upon physical inspection of the site, no hazardous material Waste/Asbestos was evident. We have made no independent investigation regarding this issue. This appraisal assumes the site is free of all hazardous waste and toxic materials. Please refer to the Assumptions and Limiting Conditions section regarding this issue.

Current Use The site is improved with a large, modern manufacturing building that is divided into office, manufacturing, clean room and shipping areas. The building was constructed in 1995 and remodeled in 2015 by Microsoft for production of the Surface Hub tablet. It is currently vacant, but is set to be purchased by the State of Oregon.

Site Size According to measurements taken from the subject’s plat, the site size is 425,146 SF (9.76 AC).

Shape Irregular.

Plat Map

Map and Tax Lot 3 1W 11 01903

Topography Generally level and at street grade.

Abutting Properties-- North Wilsonville RV Storage. East Audi Wilsonville. South SSI Shredding Systems, Inc. West Houston’s

Utilities Public utilities, including water, sewer, garbage and electricity are available to the subject property. Note, there is a Bonneville Power Association electrical substation located just northwest of the subject. There are power lines running over the northern portion of the subject site. They do not appear to adversely affect maneuverability on the site.

Street Improvements SW 95th Avenue is improved with a concrete paved roadway, curbs, gutters, streetlights and sidewalks. It is a two-way collector street with one lane each of north and southbound traffic. SW Freeman Drive is improved with a concrete paved roadway, curbs, gutters, streetlights and sidewalks. It is a two-way local access road with one lane each of east and westbound traffic. It primarily serves as an access road for the subject and neighboring properties.

Exposure Good, the site benefits from 480’ of frontage on SW 95th Avenue and 800’ of frontage along SW Freeman Drive, as well as a corner location.

Accessibility Average, the site is accessible from curb cuts on SW 95th Avenue and SW Freeman Drive.

Easements and A preliminary title report was not available for review. Upon Encumbrances reviewing county plat maps, there did not appear to be any adverse easements, encroachments, or encumbrances relevant to the subject property. If questions arise regarding easements, encroachments, or encumbrances, further research is advised.

Zoning and Comprehensive Plan

The site is zoned PDI (Planned Development Industrial) by the City of Wilsonville.

According to the City: “The purpose of the PDI zone is to

provide opportunities for a variety of industrial operations

and associated uses.”

Uses allowed outright include: A. Warehouses and other buildings for storage of wholesale goods, including cold storage plants.

B. Storage and wholesale distribution of agricultural and other bulk products, provided that dust and odors are effectively contained within the site. C. Assembly and packing of products for wholesale shipment.

D. Manufacturing and processing. E. Motor vehicle services, or other services complementary or incidental to primary uses, and which support the primary uses by allowing more efficient or cost-effective operations. Manufacturing and processing of electronics, technical instrumentation components and health care equipment.

F. Fabrication.

G. Office complexes – Technology.

H. Corporate headquarters. I. Call centers.

Zoning and J. Research and development. Comprehensive Plan K. Laboratories. (continued) L. Repair, finishing and testing of product types manufactured or fabricated within the zone. M. Industrial services. As improved, the subject is a permitted use within this zone. The complete zoning code can be located at the City of Wilsonville website.

Floodplain

According to the Federal Emergency Management Agency (FEMA), National Flood Insurance Program (NFIP), Flood Insurance Rate Map (FIRM), Community-Panel No. 41005C0234D, dated June 17, 2008, the subject site lies in Zone X, an area of minimal flood hazard.

Seismic Hazard

According to the Oregon Department of Geology and Mineral Industries (DOGAMI), the data show the amount of shaking expected if a magnitude 9.0 Cascadia Subduction Zone (CSZ) earthquake occurs. A CSZ earthquake will create a local tsunami that will inundate the Oregon coast. The subject site will experience very strong shaking in the event of seismic activity. This data shows the strongest shaking expected to occur during an earthquake in a 500- year period. The stronger the amount of shaking, the more structural damage will occur. This seismic rating is typical for the immediate area and larger region.

Site Rating Overall, noting the PDI zoning designation and interior location providing good exposure and accessibility, the site has a good rating for commercial development. The shape, size and topography of the site are conducive to development as well.

DESCRIPTION OF IMPROVEMENTS

(Photo taken July 3, 2019, #12217-98)

Introduction The improvement description is primarily based upon a physical inspection of the property, an interview with the property representative, assessor’s records, and limited architectural drawings.

Hazardous This appraisal assumes that the structure is free of all Materials/Asbestos hazardous waste and toxic materials, including (but not limited to) asbestos. We have made no independent investigation regarding this issue. Please refer to the Assumptions and Limiting Conditions section regarding this issue.

Current Use The site is improved with a large, modern manufacturing building that is divided into office, manufacturing, clean room and shipping areas. The building was constructed in 1995 and remodeled in 2015 by Microsoft for production of the Surface Hub tablet. Microsoft reportedly spent $30,000,000 or $170.84 per SF on tenant improvements. It is currently vacant, but is set to be purchased by the State of Oregon.

General Description Each of the subject’s components (office, manufacturing, clean rooms and shipping warehouse) will be briefly described below.

Office Manufacturing Clean Rooms

Shipping/Receiving Warehouse

Note, the subject was originally built as a cross-dock shipping facility. Both the north and south elevations of the building are equipped with long rows of grade level and dock high shipping/receiving doors. The design allows for a more efficient flow of materials, as goods

can enter from one side of the building and be shipped

out the other. However, the most recent tenant

(Microsoft) boarded up the north elevation and those loading doors are currently not functional. With minimal remodel, however, the north elevation could be opened up again to serve a user that needed cross dock functionality. There are a total of 53 dock doors, including the currently non-functional doors.

Office – The office is situated on the west side of the

building. It was designed to be an “open air” unit and

is built into the warehouse shell with no drop ceilings. Finishes are reflective of Class-A quality to suit a corporate user. There is a nice entry/reception area, multiple private offices, conference rooms and work rooms. There are also several cubicle hubs with multiple stations and multiple private phone booth rooms. In addition, there is a large cafeteria and seating area, multiple lounges, game rooms and bar. There is a second floor mezzanine area above the office that is equipped to function as additional overflow space or storage. Given the nice finishes and design, the mezzanine is included in the useable building area as additional professional office space, see photo 27,

page 42.

Manufacturing Unit – The manufacturing unit makes up most of the east side of the building and has an open layout with sealed concrete floors and 26’ clear heights. It served as the primary assembly area for the Surface Hub tablet. There is also a smaller, second floor tool storage area at the east side of the manufacturing area. Buildout of the tool crib mezzanine similar to the

main manufacturing floor, therefore, it is included in the

useable building area. On the west side of the

General Description manufacturing area, there are several lab units that are (continued) piped for air and water. Clean Rooms – The clean rooms are located at the northwest side of the manufacturing unit. They were formerly utilized in the manufacturing of sensitive electronics components for the Surface Hub tablet that required a controlled air environment to minimize the effect of airborne particles. They are rated at Class 1000, which means they can support a rating of 1,000 particles of 0.5 mm or larger permitted per cubic foot of air. The entrances to the clean rooms are sealed with a double door vacuum design. Finishes include FRP paneling, sealed concrete floors and high efficiency lighting. Shipping and Receiving Warehouse – The shipping and receiving warehouse is located on the south side of the building, east of the office unit. It is equipped with large racking systems, multiple dock high loading bays with load levelers, and climate controlled doors equipped with high speed motors that prevent large airflow into the manufacturing area. It was utilized as the central shipping and receiving hub for the subject.

Size According to building plans obtained by the appraisers, the subject has a gross building area of 175,600 SF.

First Floor Second Component (SF) Floor (SF) Total (SF) % Office 53,000 10,000 63,000 35.88% Shipping Warehouse 30,000 3,000 33,000 18.79% Manufacturing 65,600 0 65,600 37.36% Clean Rooms 14,000 0 14,000 7.97% Gross Building Area 162,600 13,000 175,600 100.00% Office buildout is equal to 35.88% of the GBA.

Site Coverage The building footprint is equal to 162,600 SF. This excludes the second floor storage area in the manufacturing unit and second floor office mezzanine. It indicates a site coverage ratio of 38.25%, which is similar when compared to sales used in the Sales Comparison Approach. Site Coverage

2 45.06% Component SF 4 44.86% Site Size 425,146 1 42.68% Footprint 162,600 S 38.25% 5 32.61% Coverage 38.25% 3 31.04%

Foundation Concrete.

Exterior Walls Concrete tilt.

Exterior Pedestrian Doors Multiple exterior pedestrian doors. These doors are glass encased in steel and some are metal core.

Roof Structure Flat.

Roof Cover Plastic cool roof membrane.

Insulation Assumed to be to code.

Heating and Air Conditioning Forced air gas heating and cooling systems. The building is fully climate controlled. To accomplish full climate control for the building, Microsoft built an exterior mezzanine to house additional heavy HVAC units on the north side of the building. The mezzanine is accessible from the second floor office area. Interior ducting is robust.

Floor Coverings Floor coverings are comprised of sealed concrete, commercial grade carpet and some tile.

Interior Walls Interior walls are generally textured and painted drywall and vertical composite paneling.

Interior Doors Wood core.

Ceiling Exposed steel ceiling support rails.

Interior Lighting Lighting is generally fluorescent, with a combination of high efficiency fixtures.

Plumbing Plumbing includes multiple smaller restrooms with two to three toilets and sinks, as well as a larger restroom with locker room.

Elevator The subject’s office mezzanine will be served by a single-stage, 2,100 lb. hydraulic elevator. Construction will be completed before the closing of the pending sale, as stipulated in the purchase and sale agreement. Costs were not available. The building is analyzed as if elevator served.

Life Safety The subject is fully equipped with fire sprinkler protection.

Condition Very Good, considering age and recent renovation.

Power Service The building is equipped for a heavy power output (277/480 volt, 3-phase), with multiple power banks throughout. We observed at least power panel four drop points during the inspection.

Building Age

Actual Age The subject was constructed in 1995, according to property representatives. It was fully remodeled in 2015. The actual age of the building is 24 years. Effective Age The effective age is 10 years based on visual observation. Total Economic Life 55 years per Marshall Valuation Service. Remaining Economic Life 45 years.

Site Improvements and The site is improved with an asphalt-paved parking lot, Landscaping concrete curbing, a large monument sign and yard lighting. Landscaping consists of several trees, native shrubbery, grass, and bark dusting.

Parking The parking lot is striped to accommodate approximately 213 vehicles, which indicates a parking ratio of 1.21 vehicles per 1,000 SF of building area. This is within the range of similar flex and light industrial properties. The City of Wilsonville parking standards for industrial properties range from 0.3 to 1.6 spaces per 1,000 SF, depending on the use of the property. Parking at the subject appears adequate for a variety of uses.

Summary – The subject is a 175,600 SF GBA manufacturing facility formerly occupied by Microsoft. A renovation took place in 2015, which significantly upgraded the building to a modern design. It is under contract to be purchased by the State of Oregon. The preceding information is a basic description of the subject improvements. This information is utilized in the valuation of the property. Reliance has been placed upon information provided by the property representative, the on-site inspection and county records. It is assumed there are no hidden defects, and that all structural components are functional and operational, unless otherwise noted. If questions arise regarding the integrity of the structure or their operational components, it may be necessary to consult additional professional resources.

SUBJECT PHOTOGRAPHS JULY 3, 2019

1. View northeast along the south elevation. (12217-98)

2. View north along the west elevation. (12217-97)

3. View west along the south elevation. (12217-105)

4. View northwest of the east elevation. (12217-108)

5. View west along the north elevation. (12217-110)

6. View south of the north elevation towards west end of building. Note the heavy HVAC units and mezzanine on building exterior. (12217-115)

7. South yard and shipping/receiving area, view west. (12217-106)

8. North yard shipping/receiving area, view west. (12217-111)

9. View east. (12217-116)

10. East yard. (12217-109)

11. West parking lot. (12217-100)

12. West yard area and storm water basin. (12217-75)

13. View south along SW 95th Avenue; subject at right. (12217-81)

14. View north along SW 95th Avenue; subject at left. (12217-82)

15. Office detail: reception. (12217-2)

16. Conference room. (12217-1)

17. Restroom. (12217-9)

18. Private office. (12217-3)

19. Hallway detail. (12217-7)

20. Work room. (12217-16)

21. Cubicle work areas. (12217-21)

22. Alternate view. (12217-24)

23. Maternity room. (12217-31)

24. Cafeteria/lounge. (12217-34)

25. Cafeteria seating. (12217-35)

26. Video game kiosk and stairway to second floor. (12217-11)

27. Second floor mezzanine detail. (12217-23)

28. Large restroom/locker room. (12217-30)

29. Server/network room. (12217-29)

30. Hallway to labs/clean rooms. (12217-28)

31. Lab. (12217-27)

32. Clean room entrance. (12217-51)

33. Entrance detail. (12217-50)

34. Clean room. (12217-49)

35. Warehouse detail. (12217-40)

36. Manufacturing area. (12217-53)

37. Alternate view. (12217-63)

38. Shipping/receiving warehouse. (12217-62)

39. Climate control door between warehouse and manufacturing areas. 12217-72)

40. Sprinkler riser room. (12217-71)

BUILDING DIAGRAM

MARKET ANALYSIS/HIGHEST & BEST USE

MARKET OVERVIEW The subject property is located within the Portland MSA, more specifically in Clackamas County. Please reference the Addenda for the Population, Economy, and Real Estate sections located within the Regional Description for a detailed description of the subject’s market area. Population – The Portland MSA is the 23rd largest metropolitan area in the country. The 2018 population figures as presented by Portland State University Population Research Center reflect an average annual increase from 2012 to 2018 of 1.65%. Population growth decreased slightly, to 1.53% in the most recent period, 2017-2018. The following chart summarizes population growth trends for the Portland MSA and Oregon from 2012 to 2018.

POPULATION Average 2012 2013 2014 2015 2016 2017 2018 Annual % Annual % Chg Chg 2012-18 2017-18 MULTNOMAH 748,445 756,530 765,775 777,490 790,670 803,000 813,300 1.44% 1.28% WASHINGTON 542,845 550,990 560,465 570,510 583,595 595,860 606,280 1.95% 1.75% CLACKAMAS 381,680 386,080 391,525 397,385 404,980 413,000 419,425 1.65% 1.56% CLARK (WA) 431,250 435,500 442,800 451,820 461,010 471,000 479,500 1.86% 1.80% YAMHILL 100,550 101,400 102,525 103,630 104,990 106,300 107,415 1.14% 1.05% COLUMBIA 49,286 49,850 50,075 50,390 50,795 51,345 51,900 0.88% 1.08% SKAMANIA (WA) 11,275 11,300 11,370 11,430 11,500 11,690 11,890 0.91% 1.71% PORTLAND MSA 2,265,331 2,291,650 2,324,535 2,362,655 2,407,540 2,452,195 2,489,710 1.65% 1.53% STATE OF OREGON 3,883,785 3,919,020 3,970,239 4,013,845 4,076,350 4,141,100 4,195,300 1.34% 1.31% Source: Center for Population Reseach and Census, Portland State Univ ersity State of Washington: Office of Financial Management Unemployment – According to recent data for the Portland/Vancouver MSA published by the State of Oregon Employment Department, unemployment in this MSA measured 3.8% in May 2019 (seasonally adjusted), which is slightly lower than the statewide seasonally adjusted rate of 4.2%. The unemployment rate for the Portland/Vancouver MSA was equal to the rate 12 months earlier in May 2018.

Since 2007, the State of Oregon has recorded slightly higher unemployment rates when compared to the United States as a whole. The chart below illustrates Oregon and the Portland/Vancouver MSA unemployment rates as compared to the United States from 2007 to present (May 2019, most recent available).

MARKET CONSIDERATIONS The subject is located in Wilsonville, along SW 95th Avenue with good access to Interstate 5 to the east. The immediate neighborhood includes a mix of light industrial and flex uses. As a result of the subject building design and use, the following market analysis focuses on the state of the flex and industrial market within the Clackamas and Washington County areas. A tour of the neighborhood revealed nominal vacancy within commercial, industrial and flex properties similar to the subject. While no formal survey of industrial or flex properties was available for the area, CoStar provides statistics on flex and industrial properties. The following tables summarize the state of the flex/industrial market for the larger Clackamas and Washington County area, in which the subject is located.

The CoStar survey for this region includes 2,431 flex/industrial buildings totaling 91,771,804 SF of rentable area.

The following chart outlines the triple net asking rent per SF per year for industrial and flex space in the Clackamas/Washington County area, per CoStar Property Analytics:

Overall, asking rents for industrial and flex space in this market have increased steadily from late 2014 to present date. However, note that the velocity of the increase has slowed since mid-2018. Average asking rent is currently reported at $10.59/SF/Year. The current average asking rent is 38.79% above the five year average rate of $7.63/SF/Year. While the overall rate appears to be climbing at present, vacancy appears to be stabilizing, which in turn could lead to a leveling off of rental rates. The following chart outlines the vacancy rate for industrial and flex space in the Clackamas/Washington County area, per CoStar Property Analytics:

Overall, vacancy for industrial and flex space in this market has been on a decline since late 2014. However, current date 2019 appears to indicate some stabilization in vacancy, as illustrated above by a recent spike in the overall average rate that occurred in early 2018. Currently, the vacancy rate is reported to be 3.4%, versus the average rate for the prior five years of 4.3%. As more new construction hits the open market, the vacancy rate should continue a slight upward climb which will also temper rental rates as it moves towards a more frictional level (5%). Early indications of this trend are evident in the above charts.

Probability of Leasing and Absorption – The charts below reflect probability of leasing and absorption statistics. The probability of leasing flex or industrial space similar to the subject within two years is very high, at approximately 80%. Examining the marketing period at one year lowers the probability to approximately 60%. This suggests that there is a likely opportunity of leasing the subject property. Note, the survey captured flex and industrial properties throughout the Clackamas/Washington County area with varying physical characteristics. While a marketing period of (< 1 year) is somewhat unlikely at 60%, the subject remains highly desirable for its use and is in very good condition. It offers adequate flexibility and a functional design. Because of this, the associated marketing/absorption period would likely be reduced significantly, especially considering decreasing/stabilizing vacancy rates. If the subject were vacated and offered for lease on the open market, an absorption period of approximately one year or less is estimated, considering the subject’s condition, size and construction quality relative to market trends. Also note that net absorption for industrial properties has been positive since 2015. 2019 has posted positive absorption thus far. Almost 1.1 million SF of space hit the open market in the last year, with another 889,000 +/- SF currently under construction.

A cursory tour of the subject’s immediate neighborhood, as well as an examination of rent trends, vacancy rates, and supply and demand characteristics reveal a healthy industrial and flex market.

Average Sale Price – From 2015 to current date 2018, the average sale price (over the applicable one year periods) rose from $76.92 to $148.59 per SF, or 93.17% overall. This equates to an average overall percentage increase of 2.22% per month over the same time frame. Note that the data is reflective of the local larger market of flex and industrial properties in the Clackamas/Washington County area with varying characteristics. It is very unlikely this kind of market movement is sustainable over the long term. It is, however, a good indicator of market demand in this sector as a whole.

Taking into consideration the subject’s characteristics relative to recent market activity and CoStar data, I have applied a positive market conditions adjustment of 0.50% per month through the date of value. Manufacturing in the state of Oregon – Given the subject’s design, statistics regarding the current state of Oregon’s manufacturing industry are briefly summarized in the following paragraphs. According to the State of Oregon Employment Department article “Made in Oregon: A Profile of the State’s Manufacturing Sector,” written by Felicia Bechtoldt, Oregon’s diverse manufacturing sector is one of the leading providers of industrial jobs. As of third quarter 2018, the state was home to 6,284 manufacturing establishments providing approximately 198,000 jobs. In addition, the state’s manufacturing sector is growing more quickly than the nation’s since the recession.

The proceeding chart the manufacturing employment index, showing trends for the state of Oregon and the U.S. According to the article, since its lowest employment level in February and March of 2010, manufacturing employment in the state of Oregon has grown by 23 percent. This figure is almost double the nation’s 12 percent. While Oregon’s manufacturing employment figures are 8,500 jobs below pre-recession levels, the Oregon Employment Department predicts the manufacturing sector in Oregon will grow by approximately 6.7 percent between 2017 and 2027. Within the manufacturing sector, food manufacturing is expected to grow fastest at 14.8 percent. The only broad manufacturing industry expected to lose employment is the paper manufacturing industry.

The above chart reflects the state of Oregon’s top five manufacturing industries, led by the computer and electronics components sector, which commands 19.4% of the market. To summarize, Oregon has an established manufacturing presence. This will continue to bode well for commercial and industrial real estate markets, as growth in these sectors is expected to continue. In response, companies will likely be in need of more space to expand operations. Based on overall project characteristics and the defining Wilsonville neighborhood, the subject’s overall marketability appears secure. While no formal survey was available, a tour through the neighborhood, conversations with professional and local market participants, and a survey of real estate databases suggest supply and demand conditions within the subject’s Clackamas/Washington County area are moving at a healthy pace. Vacancy remains below the expected frictional level, but is showing signs of leveling off. Rental rates continue to move upward, but the velocity of the climb has slowed in recent years. The subject is well located with good access and design. As a result, there are no adverse market conditions apparent for properties similar to the subject at this time. Note, however, other real estate sectors around the state are starting to cool. These factors are considered in the Valuation Section, and should be carefully monitored in the coming months.

STRENGTHS, WEAKNESSES, OPPORTUNITIES & THREATS (SWOT ANALYSIS) Strengths – The subject’s strengths include:  Modern construction, with a complete redesign and remodel in 2015;  Class A-quality office finishes;  Elevator-served second floor office mezzanine;  Modern manufacturing floor, clean rooms, labs and shipping bays;  Roof is less than five years old. Weaknesses – Weaknesses include:  The larger size and design may only be suitable for a limited amount of larger users;  Site maneuverability is adequate, but somewhat inferior to competing properties. Opportunities – The subject was originally designed as a cross dock shipping facility and still has the capability to be utilized as such, should it suit the right user. Threats – None noted. Wilsonville is a very well located and growing community, with easy access to Portland and surrounding linkages and ports.

HIGHEST AND BEST USE Introduction Highest and best use is a market driven concept which identifies the most profitable and competitive use to which a property can be put. It is further defined as follows: “The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum profitability.”2 The concept of highest and best use is fundamental to real property value. In one application of the concept, a site is valued as though vacant and available for development to its highest and best use. In another application, the highest and best use of the property as improved is estimated. A site may have one highest and best use as though vacant, while the improved site may have another optimal use.3 Highest and best use is essentially a market driven concept which identifies the ideal use(s) of a property which follow logical market criteria. It attempts to mirror the thinking of a buyer in the marketplace. Analysis pertaining to the legal, physical, financial and most productive uses of the site, both as though vacant and as improved, narrows development options to those best fitting the demand for the property. Once highest and best use is established, the appraisal process focuses on the identified sub-market, selecting parameters for meaningful analyses.

2 The Dictionary of Real Estate Appraisal, Fifth Edition. Chicago: Appraisal Institute, 2010. 3 The Appraisal of Real Estate, Fourteenth Edition. Chicago: Appraisal Institute, 2013.

The highest and best use of the subject land and improvements has been tested separately against the four criteria in the following analysis. Vacant Site Among all reasonable, alternative uses, the use that yields the highest present land value, after payments are made for labor, capital, and coordination. The use of a property based on the assumption that the parcel of land is vacant or can be made vacant by demolishing any improvements.4 Legally Permissible - Legal factors influencing the subject are primarily zoning regulations and City ordinances. The subject site is zoned industrial by the City of Wilsonville. As a vacant site, legal uses support a variety of industrial or flex uses. Physically Possible - The physical characteristics of the site (such as location, shape, topography, exposure, access, utilities, etc.) generally support any of the permitted uses, with minimal adverse conditions noted. Regarding locational features, the subject is located in the midst of a larger flex and light industrial neighborhood flanking SW 95th Avenue and Interstate 5. This suggests an industrial or flex use is the most likely use of the vacant site. The proximity to Interstate 5 also encourages industrial development. The size, shape and topography of the site are conducive to development as well. Considering physical and locational characteristics, an industrial or flex use is supported for the vacant site. Financially Feasible - Due to the site’s physical characteristics, surrounding development, and legal considerations, the greatest financial return would likely come from an income producing property. The subject has good industrial potential based on surrounding land uses, zoning, access, and proximity a highly traveled primary arterial (Interstate 5). Therefore, development of the site with a legally and physically supported industrial or flex use is financially feasible. Maximally Productive - Legal and physical factors support an industrial or flex use of the vacant site. Surrounding development and the large site size suggest a distribution use is the most likely use. Therefore, a distribution use accurately describes the maximally productive use of the site, as it represents a financially feasible, physically possible and legally permissible use. Marketability - Due to the subject’s frontage along SW 95th Avenue with access to Interstate 5, the subject has high marketability for an industrial or flex use consistent with the allowable uses of the industrial zoning ordinance. Marketability factors support a distribution use. Because of the subject’s size and location, we anticipate a marketing period of approximately one year, if listed at or near market value. This is consistent with marketing periods of similar properties in the subject’s market area. Highest and Best Use Conclusion As Vacant - Based upon past, present and prospective market activity in the subject’s market area, it is our opinion that an industrial use; more specifically, a distribution use, is an adequate expression of the highest and best use of the vacant site.

4 The Dictionary of Real Estate Appraisal, Fifth Edition. Chicago: Appraisal Institute, 2010.

“AS IMPROVED” Highest and best use of a property as improved pertains to the use that should be made of an improved property in light of its improvements. Legally Permissible - The site is zoned industrial by the City of Wilsonville. The existing manufacturing use is an allowed use and meets all known developmental standards. Physically Possible - The site is improved with a 175,600 SF manufacturing facility that reflects very good condition and quality. Physical characteristics support the existing manufacturing use. Financially Feasible - The subject is under contract to be purchased by the State of Oregon, who will occupy the subject as an owner user. It was previously leased by Microsoft in conjunction with the manufacturing of computer products. In general, marketability factors suggest a healthy flex/industrial market in Washington/Clackamas Counties. The subject would compete well with other large industrial properties on the market if offered for lease. Overall, the existing improvements are financially feasible. Maximally Productive - The maximally productive use is synonymous with the financially feasible use, the existing improvements. Marketability - The subject’s very good quality and centralized location appeal to an adequate tenant base. The marketability of the subject as a manufacturing facility has been discussed previously. General supply and demand conditions are reflective of a healthy market. Because of the subject’s size and location, we anticipate a marketing period of approximately one year, if listed at or near market value. This is consistent with marketing periods of similar properties in the subject’s market area. Highest and Best Use Conclusion As Improved - Based upon past, present and prospective activity in the market area, it is our opinion that the highest and best use of the subject as improved is adequately expressed by the existing improvements.

VALUATION METHODS

SITE VALUE In valuing the subject site, as though vacant as of the effective date of this report, the Sales Comparison Approach is utilized. In this approach, recent sales and/or listings of similar sites are compared to the subject using the adjustment process (if appropriate) to indicate value. Where good market activity and data is available, this approach best reflects market behavior and provides a useful estimate of value for the subject land.

COST APPROACH The Cost Approach is based upon the principle that the value of property is significantly related to its physical characteristics and that no one would pay more than the cost to build a like facility in today’s market on a comparable site. In this approach, the market value of the site is estimated and added to the depreciated value of the improvements. In addition, entrepreneurial profit is added. For proposed or newer properties, this approach may have significant relevance. For older properties or those with substantial depreciation, this approach has limited application. However, the Cost Approach may prove useful as an indication of potential supply, as measured by the amount of profit evident. These factors will be considered in addressing the emphasis placed on the Cost Approach.

INCOME APPROACH This approach is predicated on the assumption that there is a definite relationship between the net income a property will earn and its value. Net income is the income generated before payment of any debt service. The process of converting it into value is called capitalization. Net income is divided by a capitalization rate. Factors such as risk, time, interest on the capital investment, upside potential and recapture of the depreciating asset are considered in the rate. Applying a capitalization rate based on indications from comparable sales reflects expectations of buyers and sellers in the market. Another capitalization concept employed with the Income Approach is the Discounted Cash Flow Analysis or yield capitalization. It is developed by projecting cash flows over a holding period assuming variations in income, expenses, lease terms, reversion rates and internal rates. The net present value of the cash flows is a method of measuring anticipated future benefits.

SALES COMPARISON APPROACH This approach analyzes sales of comparable properties with regard to the nature and condition of each sale. Logical adjustments and/or comparisons are made for varying physical characteristics. For land value, a common denominator is a price per square foot or price per acre; for improved properties, it may be the price per square foot, price per unit, or a gross income multiplier. This approach develops a good indication of value when sales of similar properties have occurred.

RECONCILIATION This is the process by which the individual approach indications are weighed based on validity and applicability to the subject market. The indications often indicate different values. After factors influencing each approach are carefully considered (i.e. quality and quantity of data, sophistication of the market, etc.), a final point estimate of value is concluded. In this report, the Income Capitalization and Sales Comparison Approaches will be utilized to value the subject property. The Cost Approach is excluded due the subjective nature of estimating depreciation in older properties. Its exclusion does not diminish the validity of the final value conclusion.

INCOME APPROACH

The first step in the Income Approach is to analyze current income or estimate the subject's potential gross income. This process is accomplished through a comparison of the subject with rental properties in similar locations offering similar utility. Vacancy allowance and operating expenses are deducted, based on market analysis and support from the subject’s operating history. Finally, the resulting net operating income is converted to value using a capitalization rate. Then, adjustments may be made to establish the leased fee estate.

POTENTIAL GROSS RENTAL INCOME Rental Income - To estimate market rent for the subject's rental space, the subject's actual rental achievements are compared with market rent comparables. Actual Leasing – The subject is pending sale and will be owner occupied upon purchase. An appropriate rental rate for the subject will be market derived. Note that prior to the pending sale, the subject was listed for $0.90 per SF, NNN for roughly a year. There were several offers to lease the property, but all fell through. In addition, Microsoft had leased the entire building at a shell rate of $0.37 per SF. The low lease rate accounts for the tenant improvement upgrades Microsoft made during the remodel that were installed at a cost of roughly $30 million. Details of the lease term were unknown. When Microsoft vacated, they forfeited the improvements and paid a penalty for early lease termination. The prior lease rate is given no weight in this analysis, considering the heavy discount Microsoft was receiving for installing their own TI’s. Market area industrial leases are typically based on a triple net agreement, with the tenant reimbursing the lessor for their pro rata share of real estate taxes, fire and extended perils insurance, utilities, janitorial, and CAM's. The following analysis is conducted on a dollar per square foot per month basis, reflecting market behavior. The market rent is assigned to the rentable area of the space, which is typical in the market. The following presentation summarizes the comparables found to be most similar to the subject property. Although we performed a thorough search for comparables in the subject’s immediate market, ultimately, the exploration yielded limited results. Therefore, the comparable search was expanded throughout the greater Washington, Clackamas, Multnomah and Yamhill County areas. Due to the good quality office buildout of the subject, potential gross income will be determined by bifurcating the warehouse and office rental rates, respectively. Following the comparable discussion is a Lease Comparable Tabulation Chart and Adjustment Grid, which summarizes the leases used in this analysis. A Lease Comparable Location Map is also provided. The following narrative analyzes the comparables with respect to the subject. When necessary, the comparables have been adjusted to reflect a lease structure similar to the market: triple net with the tenant responsible for real estate taxes, fire and extended perils insurance, utilities, janitorial and CAM expenses.

The comparable leases indicate an adjusted rental range from $0.46 to $1.54 per SF. Each comparable is briefly discussed on the following pages.

Comparable 1 ($0.70/SF/Adjusted) is the current in-place lease rate for a flex building. This property includes specialty manufacturing space, office, showroom and warehouse area. The office reflects Class A quality and the building has been maintained very well. It is in very good condition. It has a recently executed 10 year lease in place with nine years remaining. Terms are modified gross, with ownership paying roof maintenance and insurance. The lease rate has been adjusted to reflect a triple net structure. Size is equal to 55,400 SF and it was built in 1996. This is a reasonable indicator of market rent for the subject’s warehouse/manufacturing units, on balance, considering the smaller size and condition of the warehouse. Note, this comparable is included as Sale #1 in the Sales Comparison Approach, and concluded to be a low indicator, when considering the entirety of the building relative to the subject (primarily office buildout, location, quality, etc.) However, when comparing this comparable’s warehouse unit with the subject’s, they are similar.

1300 NE Alpha Drive McMinnville, Oregon (Photo taken 3/28/2017)

Comparable 2 ($0.46/SF) is the April 2017 lease to Staples for a 263,413 SF distribution warehouse in Portland. This reflected new construction and first generation occupancy. The landlord provided a free rent concession of three months. The term is five years, with annual 3% escalations. The location in Portland with proximity to I-205 and clear heights are superior. However, the lower percentage of office and larger size make this a low indicator of market rent for the 16393-16441 NE Cameron Blvd subject’s warehouse/manufacturing units. Portland, Oregon (Photo taken March 17, 2019, #12086-115)

Comparable 3 ($0.54/SF) is the April 2017 lease to Anixter in the Big Eddy Commerce Center. Built in 2017, this lease reflected first generation space and included a large (nearly 9%) office component. Terms are 10 years with two months’ free rent and 3% annual escalations. The location in Portland, superior clear heights, and smaller size are offset by the inferior site coverage, available office and utility, making this a low indicator of market rent for the subject’s warehouse/manufacturing units. 19545 NE Riverside Parkway Portland, Oregon (Photo taken March 17, 2019, #12086-114)

Comparable 4 ($0.50/SF) is the December 2018 lease to Young’s Market Company, a spirits distributor. The term is eight years, with 3% annual escalations. Per the broker, the landlord paid $10/SF of 7,000 SF of office for tenant improvements. This TI allowance went toward office upgrades, dock equipment and lighting. The tenant paid out of its own pocket to add an additional 7,000 SF of office (including 3,000 SF on the second floor-- not elevator served). 16913 NE Cameron Blvd Portland, Oregon The location and clear heights are superior. (Photo taken March 17, 2019, #12086-116) However, the inferior office buildout and utility are offsetting. This comparables is a low indicator of market rent for the subject’s warehouse/manufacturing units.

Comparable 5 ($1.46/SF) is the current triple net lease rate for an industrial campus in Tualatin. The property serves as a specialized manufacturing/R&D/corporate office facility with a modern design and quality. The tenant is LAM Research, a manufacturer and designer of semi-conductor systems and technology. Construction is concrete tilt. The current lease runs through November 2027. The terms are 2% escalations each year and three five year renewal options. 18623-18625 SW 108th Avenue Tualatin, Oregon Super quality and smaller size make this (Photo taken July 14, 2019) comparable a high indicator for the subject’s office.

Comparable 6 ($1.54/SF) is the current triple net lease rate for an industrial campus in Wilsonville. The property serves as a specialized manufacturing/R&D/corporate office facility with a modern design and quality. The tenant is Rockwell Collins, a manufacturer and designer of flight simulator systems and other air defense technologies. Construction is concrete tilt and the 124,450 SF facility is fully sprinklered and offers heavy power.

27300 SW Parkway Avenue The current lease runs through April 2024. The Wilsonville, Oregon terms are 2.5% escalations each year and two (Photo taken July 14, 2019) five year renewal options. Superior quality and smaller size make this comparable a high indicator for the subject’s office and warehouse/manufacturing units.

The comparables are arrayed below, illustrating the subject’s competitive position.

Lease Comparable Array - WH Comparable Adjusted Rent/SF Indication 6 $1.54 High SUBJECT 1 $0.70 Reasonable 3 $0.54 Low 4 $0.50 Low 2 $0.46 Low Based on the physical and locational factors affecting rent, Comparable 1 is the best indicator for the subject property’s warehouse/manufacturing units, bracketed on the high side by Comparables 5 and 6, which are high indicators due to condition, quality and available office. Based on this analysis, market rent of $0.70 per square foot is considered appropriate for the subject property’s warehouse/manufacturing units. The subject’s office unit is reflective of very good quality finishes and a functional, corporate design. Three of the six comparables’ (2, 3 and 4) brokers reported rents were split between rates for the office and warehouse. The warehouse starting rates ranged from $0.45 to $0.51, while the office segmented rents are arrayed below and range from $0.85 to $0.95/SF.

Comparable 2 $0.90 Comparable 3 $0.85 Comparable 4 $0.95

The subject’s office is bracketed by the data in the array on the following table.

Lease Comparable Array - Office Comparable Adjusted Rent/SF Indication 6 $1.54 High 5 $1.46 High SUBJECT 4 - Off. Surcharge $0.95 Low 2 - Off. Surcharge $0.90 Low 3 - Off. Surcharge $0.85 Low

A market rent of $1.10 per square foot based on market comparables is well supported. The subject office’s larger size places some downward pressure on the rent per SF indication. Comparables 5 and 6 remain high indicators due to their superior quality and design. The segmented rents indicated by Comparables 2, 3 and 4 are low indicators based on quality and utility. The concluded rent is still within the overall comparable range. Clean Rooms – The subject’s clean rooms are of adequate design and quality for their use. Discussions with multiple brokers in the industrial sector revealed these units are almost never leased on their own in the open market. Rather, they are typically built with a certain user and improvement in mind. The condition, quality and buildout of the subject’s clean room units is superior to that of the warehouse/manufacturing units. However, they remain inferior to the office unit given the lesser utility. Therefore, a subjective discount of -25% from the concluded rent for the office unit ($1.10/SF) is applied to the clean rooms. $1.10 per SF x 0.75 = $0.825, rounded to $0.85 per SF. Potential gross income is concluded following the Lease Comparable Tabulation Chart and Location Map.

 LEASE COMPARABLE TABULATION CHART AND ADJUSTMENT GRID 

Characteristics Subject Comparable 1 Comparable 2 Comparable 3 Comparable 4 Comparable 5 Comparable 6 Address 26755 SW 95th Avenue 1300 NE Alpha Driv e 16393-16441 NE Cameron Boulev ard 19545 NE Riv erside Parkway 16913 NE Cameron Boulev ard 18623-18625 SW 108th Avenue 27300 SW Parkway Avenue Wilsonv ille, Oregon McMinnv ille, Oregon Portland, Oregon Portland, Oregon Portland, Oregon Tualatin, Oregon Wilsonv ille, Oregon Lease Date 2017 2017 2017 2018 2019 2019 Size (NRA SF) 175,600 55,400 263,413 94,706 151,922 87,476 124,450 Rent/SF/Mo. To be owner occupied $0.75 $0.46 $0.54 $0.50 $1.46 $1.54 Warehouse Rent/SF/Month $0.45 $0.51 $0.48 Office Rent/SF/Month $0.90 $0.85 $0.95 Expense Structure Assume NNN MG NNN NNN NNN NNN NNN Term 10 yrs. 5 yrs. 10 yrs. 8 yrs. 10 yrs. 5 yrs. Escalations 3%/yr. 3%/yr. 3%/yr. 3%/yr. 2%/yr. 2.5%/yr. Renewals Three, 5-yr. options Two, 5-yr. options Date Inspected July 3, 2019 March 28, 2017 Via Photograph Via Photograph Via Photograph Via Photograph Via Photograph Year Built 1995/2015 Renov ation 1996 2015 2017 2018 2017 2008 Clear Heights 26' 20' 30' 30' 30' 12' 24' Office % 35.88% 15.00% (Approx.) 1.12% 8.84% 4.61% >75% 40.18% Rent Adjustment Description Adj(+/-) Description Adj(+/-) Description Adj(+/-) Description Adj(+/-) Description Adj(+/-) Description Adj(+/-) Conditions of Lease Arm's Length $0.00 Arm's Length $0.00 Arm's Length $0.00 Arm's Length $0.00 Arm's Length $0.00 Arm's Length $0.00 Expense Structure Assume NNN NNN ($0.05) NNN $0.00 NNN $0.00 NNN $0.00 NNN $0.00 NNN $0.00 Listing Status -5.00% for activ e listings No $0.00 No $0.00 No $0.00 No $0.00 No $0.00 No $0.00 Market Conditions: Time 0.0% $0.00 0.0% $0.00 0.0% $0.00 0.0% $0.00 0.0% $0.00 0.0% $0.00 Adjusted Rent/SF $0.70 $0.46 $0.54 $0.50 $1.46 $1.54 Qualitative Adjustment Comparison Adj(+/-) Comparison Adj(+/-) Comparison Adj(+/-) Comparison Adj(+/-) Comparison Adj(+/-) Comparison Adj(+/-) Location Wilsonv ille, Oregon Inferior - Superior + Superior + Superior + Similar = Similar = Parking/Site Maneuv erability Average Inferior - Similar = Inferior - Similar = Similar = Superior + Condition Very Good Superior + Similar = Similar = Similar = Similar = Superior + Ov erall Quality Class-A, B Similar = Similar = Similar = Similar = Superior + Superior + Available Office 35.88% Inferior - Inferior - - Inferior - - Inferior - - Superior + Superior + Clear Heights 26' Inferior - Superior + Superior + Superior + Inferior - Inferior - Functional Utility Manufacturing/Cross-Dock Shipping Similar = Inferior - Inferior - Inferior - Superior + Similar = Size (SF) 175,600 Smaller + + + Larger - - Smaller + Similar = Smaller + Smaller + Comparability = - - - - - + + + + + + + Conclusion Reasonable Indicator Low Indicator Low Indicator Low Indicator High Indicator High Indicator

LEASE COMPARABLE MAP

POTENTIAL GROSS INCOME CONCLUSION Rental Income Conclusion -- One source was analyzed regarding appropriate market rent levels: market rent comparables. Regarding actual leasing activity, the subject is reportedly set to be owner occupied upon purchase. Based on the comparable rental analysis; market rents as follows were concluded for each of the subject’s units:

Office $1.10 Clean Rooms $0.85 Shipping/Receiving Warehouse $0.70 Based on this analysis, the conclusions are well supported by the market. Applying the concluded rents against the rentable area of 175,600 SF, results in a potential gross income, as detailed in the following chart, of: Potential Gross Income Office 63,000 SF x $1.10 /SF x 12 mo. = $831,600 Clean Rooms 14,000 SF x $0.85 /SF x 12 mo. = $142,800 Manufacturing/Warehouse 98,600 SF x $0.70 /SF x 12 mo. = $828,240 PGI 175,600 SF x $0.86 /SF x 12 mo. = $1,802,640

VACANCY AND CREDIT LOSS This expense category accounts for the time between tenants, and possible prolonged vacancies under slow market conditions. This assignment reflects the probable vacancy during the economic life of the property, not necessarily the current vacancy. Typical vacancy and credit loss allocations assigned by buyers and sellers of average quality, well-located commercial properties that have not experienced historical vacancy problems are 5%. As discussed in the Market Analysis, the subject’s market area has experienced recent vacancy rates between 3.4% and 4.3%. Based upon the above information, a vacancy and credit loss allocation of 5.00% will be used. Vacancy in the subject’s market has appeared to level off, and may be moving more towards the frictional level of 5%. 5.00 % x $1,802,640 = $90,132

The effective gross income is ($1,802,640 - $90,132) $1,712,508.

ESTIMATED OPERATING EXPENSES The subject's estimated market rents have been based upon a triple net expense structure, with property taxes, insurance, utilities, landscaping, janitorial, and normal maintenance costs passed through to the tenant, while the property owner is responsible for management and structural maintenance costs, which are discussed in the following narrative.

Management ($51,375) - Property management companies in the subject’s market area charge 2% to 6% of effective gross income for industrial and commercial properties. The management costs are dependent upon the property's size, number of tenants, and lease structure. Given the subject's large size, and single tenant design, a 3.00% management fee is considered appropriate and will be used in this analysis. Reserves for Replacement ($34,250) - Reserves for replacement expense is not a typical annual cash expenditure, but rather, the annualized cost of major expenses in the future, such as the replacement of the roof cover, heating systems, asphalt paving, and other structural components. The reserves for replacement allowance buyers and sellers for this type of property typically allocate is 2% to 6% of effective gross income, depending on the age and condition of the facility. Based on the age, quality, and condition of the subject improvements, a reserve for replacement allocation of 2.00% is considered appropriate.

Total Expenses are $85,625, resulting in a net operating income of (EGI – Expenses) $1,626,883 or $9.26 per SF.

OVERALL CAPITALIZATION RATE The final step in the Income Approach is to capitalize the net operating income by an appropriate overall rate. Overall capitalization rates vary based upon many factors including age, quality, condition, strength of tenants, vacancy history, anticipated tenant turnover expenses, appreciation potential, and general perceived risk in maintaining the estimated stabilized net operating income of the property. The following chart summarizes market comparables. CAPITALIZATION RATE COMPARABLES NOI per Comparable Sale Date Year Built Sale Price SF NOI OAR SF 1 1300 NE Alpha Drive Nov-17 1996 $ 5,766,000 55,400 $ 442,252 7.67% 7.98$ McMinnville, Oregon $104.08

2 19509-19545 NE Riverside Parkway Apr-18 2017 $ 22,200,000 153,387 $ 1,076,700 4.85% 7.02$ Gresham, Oregon $144.73

3 5825 NE Skyport Way Jul-18 1979 $ 8,000,000 77,960 $ 523,200 6.54% 6.71$ Portland, Oregon $102.62

4 21256-21260 Butteville Road NE Oct-18 2017 $ 22,500,000 242,385 $ 1,181,263 5.25% 4.87$ Donald, Oregon $92.83

The comparables indicate a range from 4.85% to 7.67%. The net operating income of each comparable is based on similar expense structure to that of the subject. Each of the comparables has varying physical and financial characteristics and brackets the subject in terms of age, condition, quality, location, durability of income stream, and overall market appeal. Overall, these sales are reasonably comparable to the subject from an investor's perspective.

Comparable 1 (7.67%) is the sale of a larger manufacturing facility with good supporting office component, located in McMinnville. Size is equal to 55,400 SF. The occupying tenant reportedly had 8 years left on a ten year lease. They specialize in metal injection molding for high end parts such as those that are used in dental equipment. It is a high indicator, considering the inferior location. Comparable 2 (4.85%) reflects the sale of the Big Eddy Commerce Center, which is leased to Anixter (a national tenant) and Outside Van (a local tenant). The smaller size decreases risk and makes this a low indicator. Comparable 3 (6.54%) is the sale of a larger manufacturing facility in Portland, just south of the airport. The property exhibited average overall condition and quality, and was occupied by Silver Eagle Manufacturing, a producer of trucking and military trailers and components. Location is superior, as is the smaller size, making this is a low indicator. Comparable 4 (5.25%) is the sale of an industrial distribution facility in Donald; while it is leased to two tenants, Hazelnut Growers of Oregon is owned by Wilco. The lower NOI per SF decreases risk; however, the location is in Donald without significant surrounding industrial buildout. The condition is superior, noting the 2017 build date. This is a low indicator. The comparables are arrayed below from low to high, illustrating the subject’s perceived placement amongst the array: Comparable Capitalization Rate Array Comparable OAR % Indication 2 4.85% Low 4 5.25% Low 3 6.54% Low SUBJECT 1 7.67% High The subject’s income stream has been based on market rent and expenses. Concluding a capitalization rate of 6.75% based on comparable sales is a reasonable conclusion. PwC Real Estate Investor Survey - Supplementing this comparable data, the PwC Real Estate Investor Survey, Second Quarter 2019, published by PricewaterhouseCoopers, was reviewed. Recessionary conditions were beginning to slow in 2014, at which point the average overall cap rate (OAR) measured 5.85% for warehouse properties in the Pacific Region. Capitalization rates have decreased steadily since then. The Second Quarter 2019 survey indicated an average capitalization rate of 4.35% ranging from 3.25% to 6.00%. This reflects no change from the prior quarter, and a decrease of 45 basis points from one year ago, at which point the average capitalization rate measured 4.80%. The following chart illustrates the trend in the Pacific Region Warehouse capitalization rates over the past five years.

It is noted that the average rate reported by PwC includes a sampling of warehouse properties of various ages, conditions, and construction characteristics. Keep in mind, the data is also reflective of institutional grade investment properties, which typically refers to properties of sufficient size, stature or quality that can attract attention from large national or international investors. The pool of potential investors can include but not be limited to: pension funds, foundations, investment banks, hedge funds and real estate investment trusts (REITs).

CAPITALIZATION RATE CONCLUSION The two methods used to derive an overall capitalization rate for the subject indicate an overall rate between 4.35% and 7.67%. The market sales comparison is based on sales of properties with similar income and risk characteristics. This method is the preferred method and supported an overall rate of 6.75%. The PwC survey is anecdotally useful, but more representative of regional trends and institutional properties and may be less indicative of the local market area. Based on the available information, and considering the subject’s location, physical characteristics, manufacturing design, condition, and recent renovation, a capitalization rate of 6.50% is well supported and will be used in this analysis.

INCOME CAPITALIZATION APPROACH CONCLUSION Dividing the estimated net operating income by the concluded overall capitalization rate, results in an as is market value of the subject property, by the Income Capitalization Approach, of ($1,626,883  6.75%) $24,101,964 rounded to:

$24,100,000

 INCOME APPROACH SUMMATION TABLE 

Potential Gross Income Office 63,000 SF x $1.10 /SF x 12 mo. = $831,600 Clean Rooms 14,000 SF x $0.85 /SF x 12 mo. = $142,800 Manufacturing/Warehouse 98,600 SF x $0.70 /SF x 12 mo. = $828,240 PGI 175,600 SF x $0.86 /SF x 12 mo. = $1,802,640

Less, Vacancy and Credit Loss 5.0% = ($90,132)

Effective Gross Income = $1,712,508

Less Expenses-- $/SF $ % EGI Management $0.29 $51,375 3.00% Reserves for Replacement $0.20 $34,250 2.00% $0.49 $85,625 5.00% Total Expenses = ($85,625)

Net Operating Income (NOI) = $1,626,883 Per SF = $9.26

Capitalization of Income

NOI Divided By OAR = Value

$1,626,883 Divided By 6.75% = $24,101,964

Estimated Market Value (Rounded) = $24,100,000 per SF $137.24

SALES COMPARISON APPROACH

In this section, the market value of the subject property will be estimated by direct comparison analysis, which compares improved sales to the subject property on a price per square foot basis. The price per square foot is based upon the physical characteristics of the property, and care must be taken in the comparable selection process. The comparables are analyzed considering such factors as location, site coverage, parking, exposure, access, utility, condition, quality, among others. A survey of the market area was conducted and included CoStar, LoopNet, Regional Multiple Listing Service, Willamette Valley Multiple Listing Service, County assessor’s records, and interviews with several local real estate professionals and developers familiar with the subject property type. The limited number of comparable sales in the subject’s market area and lack of uniformity within this market prevents direct extraction of adjustments from the marketplace. General analysis reflecting market behavior is utilized to determine which comparables are superior or inferior to the subject. This analysis establishes value parameters for the subject, allowing for a final conclusion of value. Following the comparable discussion is an Improved Sales Tabulation Chart and Adjustment Grid, which summarizes the sales used in this analysis. An Improved Sales Location Map is also provided.

ADJUSTMENTS Property Rights Conveyed – Properties are sold with a specific bundle of rights and typically reflect various forms of ownership interest. This analysis focuses on the fee simple value of the property, assuming stabilized occupancy and market rents. Therefore, the comparable sales are analyzed on a fee simple basis. If the properties were vacant and purchased for owner occupancy or fully leased at market rents at the time of sale, no adjustment is necessary. However, if the property exhibited vacancy above market or non-market rents, an adjustment will be made to reflect stabilized operations. The comparable sales included four leased fee ownership interests and one listing. Comparables one through four were fully leased at the time of sale. Therefore, no adjustment is necessary. Financing Terms – The comparable sales sold via conventional financing or cash, all assumed to be cash equivalent. No adjustment is necessary. Conditions of Sale – The comparables generally reflect arm’s length negotiations. Therefore, no adjustment is made. Excess/Surplus Land – None of the comparables had an excess or surplus land component. The excess/surplus land components (if determined to be part of sale) are typically extracted to reflect the sale prices of the improvements and supporting sites only. No adjustment is necessary for this category. Market Conditions - The comparables indicate an unadjusted range in sale price of $92.83 to $246.67 per SF, selling between November 2017 and December 2018. Because some of the sales closed more than one year ago, an adjustment for market conditions (time) is considered. As illustrated in the Market Analysis, prices have generally increased since 2014, however, the velocity of the increase has begun to show signs of slowing down. Other indicators

point to a flex/industrial market in Washington/Clackamas Counties that could be reaching stabilization soon. Nonetheless, taking into consideration the subject’s characteristics relative to recent market activity, and as discussed in the Market Analysis, the sale comparables are adjusted up by 6.0% per year, or 0.50% per month through the date of value. QUALITATIVE ADJUSTMENTS – The comparables are compared and contrasted to the subject on a qualitative basis. Categories include location, site coverage, functional utility, office percentage, clear heights, condition, quality, size and elevator service. Each category is analyzed and the comparable is concluded to be similar, inferior or superior to the subject. The categories are reconciled, resulting in reasonable, low or high indicators for the subject. Listing Status – The lone listing in the array (Comparable 5) has been negatively adjusted -5.00% in recognition of typical buyer/seller negotiations. List to sale price discount information was limited for the comparables utilized. However, Comparable 1 had a list to sale price discount of -5.37%. A -5.00% discount is reasonable for Comparable 5, given its larger size but also superior quality and location.

COMPARABLE ANALYSIS The comparable sales indicate an adjusted range of $96.54 to $234.34 per SF. Each comparable is briefly discussed in the following narrative. Comparable 1 ($112.21/SF/Adjusted) is the November 2017 sale of a larger specialized manufacturing facility with very good supporting office component, located in McMinnville. Size is equal to 55,400 SF. The occupying tenant reportedly had 8 years left on a ten year lease. They specialize in metal injection molding for high end parts such as those that are used in dental equipment. The site has ample room for large truck maneuvering. The office reflects near Class A buildout and is excellent condition, as is the manufacturing warehouse. It was reportedly built in 1996. The smaller size is superior, but inferior location, overall condition and clear heights are offsetting. Overall, it is a low indicator.

1300 NE Alpha Drive McMinnville, Oregon (Photo taken 3/28/2017)

Comparable 2 ($96.54/SF/Adjusted) is the October 2018 sale of a 252,385 SF distribution center completed in 2017 in Donald. It is occupied by Wilco and Hazelnut Growers of Oregon; while the latter has manufacturing space, the buildout was paid for by the tenant. The broker confirmed the sale and indicated this comparable was not listed. It transacted as a 1031 exchange. The higher site coverage ratio, office buildout

and larger size all place downward pressure on 21256-21260 Butteville Road NE Donald, Oregon the price per SF indication, making this a low (Photo taken March 17, 2019, #12086-119) indicator.

Comparable 3 ($140.11/SF/Adjusted) is the November 2018 sale of a larger industrial warehouse facility with supporting corporate style office. It was not listed on the open market prior to sale. The buyer was Dermody Properties, a national developer, investor and manager of industrial properties. It purchased as a long- term hold asset due to the current lease in- place. The tenant is Aosom, an online retailer.

27150 SW Kinsman Road Construction is concrete tilt and clear heights Wilsonville, Oregon are 30’. The site has ample room for (Photo taken 7/14/2019) maneuverability. The improvements were built in 2006. Based on the similar location (located down the street from the subject), but also noting the superior clear heights and smaller size, this is a high indicator of value for the subject.

Comparable 4 ($149.07/SF/Adjusted) is the December 2018 sale of a 153,387 SF industrial distribution facility in Portland. Constructed in 2017, it was fully leased at the time of sale to two tenants: Anixter and Outside Van. The listing broker confirmed the sale as straightforward, and noted this property was listed for several years, first as a build-to-suit, then for lease. It sold following 100% occupancy. The location in Gresham, superior clear heights, 19545 NE Riverside Parkway and smaller size make this a high indicator for Portland, Oregon the subject. (Photo taken March 17, 2019, #12086-114)

Comparable 5 ($234.34/SF/Adjusted) is the current asking price for an Industrial Campus located east of Interstate 5 in Wilsonville. The property serves as a specialized manufacturing/R&D/corporate office facility with a modern design and quality. The tenant is Rockwell Collins, a manufacturer and designer of flight simulator systems and other air defense technologies. Construction is concrete tilt and the 124,450 SF facility is fully sprinklered and offers heavy power. 27300 SW Parkway Avenue Wilsonville, Oregon The current lease runs through April 2024. The (Photo taken July 14, 2019) listing agent (Stu Peterson, with Macadam Forbes) noted they have received an offer to purchase but the property owner turned it down. The offer was $29 million, which is below the ask price of $30.7 million. Superior quality and smaller size make this comparable a high indicator of value.

The comparables are arrayed below, illustrating the subject’s competitive position.

Comparable Improved Sales Array Comparable Adjusted Price/SF Indication 5 $234.34 High 4 $149.07 High 3 $140.11 High SUBJECT 1 $112.21 Low 2 $96.54 Low Based on the physical and locational characteristics influencing value, all of the comparables are similar to the subject with regard to utility. However, the qualitative analysis indicates the subject is bracketed by Comparables 1 and 3; resulting in a narrowed range of $112.21 to $140.11 per SF. Comparable 3 was concluded to be a high indicator. It is located in the same neighborhood as the subject, but it is smaller and was built in 2006; it also has superior clear heights, which all place upward pressure on the price per square foot. Comparable 2 is a low indicator, considering the McMinnville location off Interstate 5. Based on these factors, a unit value near the upper end of the narrowed range is appropriate, considering the subject’s good quality and condition, along with its proximity to Comparable 3. After analysis and consideration of the narrowed range, a unit value of $135.00 per SF is concluded for the subject.

SALES COMPARISON APPROACH CONCLUSION After analyzing the comparable sales, the “as is” market value of the subject improvements via the Sales Comparison Approach is ($135.00 X 175,600 SF) $23,706,000: $23,705,000

 IMPROVED SALES TABULATION CHART AND ADJUSTMENT GRID 

Characteristics Subject Comparable 1 Comparable 2 Comparable 3 Comparable 4 Comparable 5 Address 26755 SW 95th Av enue 1300 NE Alpha Driv e 21256-21260 Buttev ille Road NE 27150 SW Kinsman Road 19509-19545 NE Riv erside Parkway 27300 SW Parkway Av enue Wilsonv ille, Oregon McMinnv ille, Oregon Donald, Oregon Wilsonv ille, Oregon Gresham, Oregon Wilsonv ille, Oregon Sale date PENDING Nov -17 Oct-18 Nov -18 Dec-18 LISTING Sale Price $23,950,000 $5,677,138 $22,500,000 $14,715,000 $22,200,000 $30,698,000 Price/SF (Unadjusted) $136.39 $102.48 $92.83 $135.38 $144.73 $246.67 List Price Negotiations started at $25,000,000 $5,999,000 List v s. Sale Price (% change) -5.37% Days on Market 365 155 Not Listed Not Listed On market for lease only 287 Date Inspected July 3, 2019 March 28, 2017 March 17, 2019 July 14, 2019 March 17, 2019 July 14, 2019 Supporting Site Area (SF) 425,146 129,809 537,966 350,222 341,946 381,586 Building Size (SF) 175,600 55,400 242,385 108,698 153,387 124,450 Site Cov erage (footprint %) 38.25% 42.68% 45.06% 31.04% 44.86% 32.61% Office Buildout 35.88% 15.00% (Approximately) 3.30% 20.00% (Approximately) 8.10% 40.18% Year Built 1995/2015 Renov ation 1996 2017 2006 2017 2008 Clear Heights 26' 20' 30' 30' 30' 24' Buyer Motiv ation Owner User - State of Oregon Inv estment Inv estment Inv estment Inv estment Value Adjustment Description Adj(+/-) Description Adj(+/-) Description Adj(+/-) Description Adj(+/-) Description Adj(+/-) Property Rights Conv eyed Leased Fee $0 Leased Fee $0 Leased Fee $0 Leased Fee $0 Leased Fee $0 Financing Terms Conv entional $0 Conv entional $0 Conv entional $0 Conv entional $0 Conv entional $0 Conditions of Sale Arm's Length $0 Arm's Length $0 Arm's Length $0 Arm's Length $0 Arm's Length $0 Market Conditions (Time) +0.5% per month 9.50% $539,328 4.00% $900,000 3.50% $515,025 3.00% $666,000 0.00% $0 Listing -5.00% No $0 No $0 No $0 No $0 Yes, -5% -$1,534,900 Adjusted Price $6,216,466 $23,400,000 $15,230,025 $22,866,000 $29,163,100 Adjusted Price/SF $112.21 $96.54 $140.11 $149.07 $234.34 Qualitative Adjustment Comparison Adj(+/-) Comparison Adj(+/-) Comparison Adj(+/-) Comparison Adj(+/-) Comparison Adj(+/-) Location Wilsonv ille, Oregon Inferior - Similar = Similar = Superior + Similar = Site Maneuv erability Av erage Inferior - Inferior - Superior + Inferior - Superior + Condition Very Good Inferior - Superior + Similar = Similar = Superior + Quality Class-A, B Similar = Similar = Inferior - Similar = Superior + Office Buildout 35.88% Inferior - Inferior - Inferior - Inferior - Superior + Functional Utility Manufacturing/Cross-Dock Shipping Similar = Similar = Similar = Similar = Similar = Office Elev ator Serv ed Yes, to be completed Inferior - Similar = Similar = Similar = Similar = Clear Heights 26' Inferior - Superior + Superior + Superior + Inferior - Size (SF) 175,600 Smaller + + + Larger - Smaller + Smaller + Smaller + Comparability - - - - + + + + + + Conclusion Low Indicator Low Indicator High Indicator High Indicator High Indicator

IMPROVED SALES MAP

ANALYSIS OF VALUE CONCLUSIONS

The Analysis of Value Conclusions is the final step in the appraisal process and involves the weighing of the individual valuation techniques in relationship to their substantiation by market data, and the reliability of each valuation technique to the subject property. Indicated Values Cost Approach: ...... Not Presented Income Approach: ...... $24,100,000 Sales Comparison Approach: ...... $23,705,000 The following analysis summarizes the conclusions and explains the amount of weight applied to each value indication. The Income Capitalization Approach to value is generally considered to be the best and most accurate measure of the value of income-producing properties, as the value estimate by this approach is based upon the premise that these properties are owned for their income-producing ability. In the case of the subject property, the improvements are being purchased for owner occupancy. However, they were leased in the past to Microsoft and were also marketed for lease prior to the current pending sale. Comparable information for market rent, vacancy and credit loss, and overall capitalization rates were good, with our estimate for each of these line items considered reliable. Considering this, and that it is a widely used approach by knowledgeable buyers and sellers when analyzing this type of property, the Income Capitalization Approach is given primary weight in this analysis. The Sales Comparison Approach included four comparable sales and one active listing from which to derive a value estimate for the subject property. The price per square foot unit of comparison based on comparable property sales was used in this analysis and was determined to be the best unit of comparison in this approach. Although most of the sales were relatively current and located within the Portland MSA, all were purchased as investments and had tenants with long or mid-term leases in-place. The subject is reportedly being purchased for owner occupancy, so this erodes the validity of this approach slightly. Nonetheless, it is noted that the comparable sales did provide valuable information regarding activity in the market and various investor expectations utilized in other sections of the report. Supportive weight is placed on this approach. Primary emphasis is placed on the Income Approach. Note also, the subject’s pending sale price $23,950,000 appears to be market based and well bracketed by both approaches. Given these factors, and the desirable growing Wilsonville market, the pending sale price is also given primary emphasis.

Therefore, the concluded “as is” market value of the fee simple interest in the subject property, as of July 3, 2019, was:

TWENTY THREE MILLION NINE HUNDRED FIFTY THOUSAND DOLLARS $23,950,000

CERTIFICATION OF APPRAISAL

We certify that, to the best of our knowledge and belief:  The statements of fact contained in this report are true and correct.  We have performed no services as appraisers or in any other capacity, regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this agreement.  The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal, unbiased professional analyses, opinions, and conclusions.  We have no present or prospective personal interest in the property that is the subject of this report, and no personal interest with respect to the parties involved.  We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.  Our engagement in this assignment was not contingent upon developing or reporting predetermined results.  Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.  Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice.  We, Jonathan B. Banz, MAI and John C.A. Gillem, have made a personal interior and exterior inspection of the property that is the subject of this report. We have also inspected the exterior of all comparable data referenced in this report in person or via photographs.  No one provided significant professional assistance to the persons signing this report.  The reported analysis, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute.  The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.  As of the date of this report, I, John C.A. Gillem have completed the Standards and Ethics Education Requirements for Practicing Affiliates of the Appraisal Institute.  As of the date of this report, I, Jonathan B. Banz, MAI, have completed the continuing education program for Designated Members of the Appraisal Institute.

July 16, 2019 John C. A. Gillem Date OR Certified General Real Estate Appraiser License No. C001372 Expiration Date: October 31, 2020

July 16, 2019 Jonathan B. Banz, MAI Date OR Certified General Real Estate Appraiser License No. C000896 Expiration Date: June 30, 2020

PROFESSIONAL SERVICE AGREEMENT

26755 Sw 95th Ave Property: Former Microsoft Buflding Location: wilsonville, OR 97070

. Dregon Department oT POWELL BANZ Client. Contact: Dorm Brightman, AICP, MRED Administrative Services VA LU A TI ON

Scope of Work: An Appraiso Report prepared in accordance with the Appraisal Institute and Uniform Standards of Professional Appraisal Practice. The report will present the “As-Is”Market Value of the subject property as of the date of inspection. Copies: One (1) Electronic Final Appraisal in PDFformat, Two (2) hard copies (upon request). Additional copies willbe billed at a rate of $75 each. Professional Fee: $3,400.00 Retainer: $0.00

Terms: Commencement of the appraisal process wil[begin upon receipt of the signed Professional Service Agreement, retainer and any requested materials. The fee for the appraisal is due upon delivery of the report. Past due accounts willaccrue a late payment charge of 1.5%per month, compounded monthly. In the event that either party commences any legal action relating to the provisions of the Agreement, including collection, the prevailing party shall be entitled to its actual attorney’s fees and costs, including those incurred upon appeal. This agreement shall be governed by and construed in accordance wIth the laws of the State of Oregon, and the venue of any action arising from this agreement shall be In Marion County, Oregon. Delivery: Three weeks from the return of the Professional Service Agreement.

Modification or Changes in the Scope of Work. pre-trlal conferences, trial preparation and testimony will be Cancellation: billed separately at the stated hourly rates below, Ifthe assignment is cancelled prior to completion, for any reason, the client will be billed at a minimum $500 or for all time expended prior to cancellation. Billingrates are $150 per hour far associate time, $200 per hour for senior associate time. $250 per hour for designated associate time, $300 per hour for principal time and $350 per hour for C. Spencer Powell. MAI,Al-GRS.If the client delays completion of the assignment beyond 90 days, the fee willbe renegotiated. Hazardous Waste Powell Banz Valuation. LLCdoes not assume any duty to analyze or examine the property or Disclaimer: adjacent property for the possible presence of toxic or hazardous sub5tances or materials and accepts no liability regarding the issue. This appraisal report will contain a comprehensive disclaimer to this effect.

Uabflhty: Powell Banz Valuation, LLC’sresponsibilities are rendered and limited to the client. Liabilityis limited to the fee actually received for the services requested herein.

I, Jonathan B. Bonz. MAt, Principal ot Powell Banz I, Darrin Brightman. AICP, MRED,on behalf of Oregon Valuation, LLC,agree to the above terms, assuming Department of Administrative Services, agree to the the Professional Service Agreement is returned by above stated terms and authorize Powell Banz June 27, 2019. Valuation, LLC to prepare the above referenced appraisal.

June 25, 2019 ...j •_____, zc aoc Jonathan B. Banz, MAt Date De)htmanrMGPrMR9 Date jZ\ c.i4 SYJk3 bUfQ’ ,tS

201 FerryStreet SE,Suite 300 • Salem, Oregon 97301 Phone (503) 371-2403 • Fax (503)371-2613 • email:[email protected] www.powellbanz.com If in this the and B3514 2019. forward with with 27, identified look Number: June agreement forward We proceed Bid by the me. to of assignment Pleaso us for 97301 response copy contact to analysis. appraisal your one Oregon our free the sign for email:[email protected] feel authorization require ION begin Salem, BANZ . LLC will to Please your AT 300 please 371-2613. Agreement need LU Suite inspection

1! will Services Valuation, (503) SE, wwn.powellbanLcom agreement indicating site POWEL1 Vk we Agreement. Service Fax enclosed, Agreement Banz this for Street the of Sale Ferry thereby LLC Service Powell and 371-2403 terms contact MRED 201 Administrative information possible. Professionol of of U100 as the regarding (503) e-mail, MAI Manager AICP, list SE, or you. a Property Purchase Signed soon Professional VALUATION, considering is honor Phone Banz, fox as • • • with 97301-4281 to for B. Street questions Portfolio Brightman: via 2019 BANZ Department OR it Brightman, you 371-2403 Mr. 25, Ferry ability have attached following Equity working (503) POWELL Principal Respectfully, to Jonathan 225 Our [email protected] Dear the return assignment. agreement you Darrin Oregon [email protected] The Sr. Salem, Thank June

TAXES, ASSESSMENT DATA, DEED & LEGAL DESCRIPTION

150 Beavercreek Rd S Oregon City, OR 97045 CLACKAI4AS 503-655-8671 COUNTY

Property Account Summary 7/9/20 19

jAccount Number 01420000 Property Address 26755 SW 95TH AVE , WILSONVILLE, OR 97070

General Information

Alternate Property # 3lWll 01903

Property Description Partition Plat 2001-119 PARCEL 1 Property Category Land &/or Buildings Status Active, Locally Assessed Tax Code Area —______003-047 Remarks Property Characteristics Neighborhood 99960: Real Property Returns Countywide Land Class Category 301: Industrial land improved Acreage 9.76 Change property ratio CIC Property Details living Area Sq IManf Struct IYear Improvement StoriesBedroomsul Half Ft Size Built Grade Baths Baths

Property Values TaxYear TaxYear TaxYear TaxYear TaxYear Va IueT ype 2018 2017 2016 2015 2014 AVR Total $18,438,055 $17,000,000 $15,810,584 $15,500,000 $15,500,000 Exempt TVR Total $18,438,055 $17,000,000 $15,810,584 $15,500,000 $15,500,000 Real Mkt Land $1,744,120 $1,532,127 $1,377,951 $1,252,683 $1,252,682 Real Mkt Bldg $17,608,080 $15,467,873 $14,432,633 $14,247,317 $14,247,318 Real Mkt Total $19,352,200 $17,000,000 $15,810,584 $15,500,000 $15,500,000 MS Mkt Land $1,744,120 $1,532,127 $1,377,951 $1,252,683 $1,252,682 MS Mkt Bldg $17,608,080 $15,467,873 $14,432,633 $14,247,317 $14,247,318 MV 1/4 719/2019 SAVL (MAV Use Portion) MAy(MarketPortion) $i,4i,o $i8,4i,o $i,4i,o $Th,U9b7I2 $-t6y05128 Mkt Exception_ $460,198 $1,500,000 $9,496,130 .VExcepfion - $341,927 $1,191,000 $8,138,183

Tax Rate Description Rate LTotalRate 18.7288

Tax Balance I Related Properties P0007011 is Located On this property Active Exemptions

No ExemptionsFound Events

. Entry :tIe Date- Type Remarks 04/24/2019 Seg/Merge 04/24/2019 Parent in Seg/Merge SM 190322, Effective: 01/02/2018 by DROME 15:26:00 Completed 04/24/2019 Seg/Merge SEG/MERGE BEGUN ON SM190322 COMB TL 01903MA1 WITH 04/24/2019 15:25:00 Initiated TL 01903 BY LTR 3-25-2019, EFF 2019-20 By DROME 05/09/2018 Tax Bill Dept of Revenue Opinion and Order for 2017 performed by 05/09/2018 11:26:00 Recalculation MAURAJEN 05/09/2018 Tax Bill Dept of Revenue Opinion and Order for 20 16 performed by 05/09/2018 11:20:00 Recalculation MAURAJEN 05/09/2018 Tax Bill Dept of Revenue Opinion and Order for 2015 performed by 05/09/2018 11:03:00 Recalculation MAURAJEN 05/09/2018 Value Type: Dept of Revenue Opinion and Order, Status: Approved, Tax 05/09/20 18 11:01:00 Modification Year: 2017 by MAURAJEN 05/09/201805/09/2018 Value Type: Dept of Revenue Opinion and Order, Status: Approved, Tax 10:59:00 Modification Year: 2016 by MAURAJEN 05/09/2018 Value Type: Dept of Revenue Opinion and Order, Status: Approved, Tax 05/09/20 18 10:58:00 Modification Year:2OI5byMAURAJEN -______02/21/2018 Tax Bill Dept of Revenue Opinion and Order for 2017 performed by 02/21/2018 12:33:00 Recalculation MAURAJEN 02/21/2018 Tax Bill Dept of Revenue Opinion and Order for 2016 performed by 02/21/2018 12:30:00 Recalculation MAURAJEN 02/21/2018 Tax Bill Dept of Revenue Opinion and Order for 2015 performed by 02/21/2018 12:21:00 Recalculation MAURAJEN 02/21/2018 Tax Bill Dept of Revenue Opinion and Order for 2014 performed by 02/21/2018 12:18:00 Recalculation MAURAJEN 02/21/2018 Value Type: Dept of Revenue Opinion and Order, Status: Approved, Tax 02/21/2018 12:12:00 Modification Year: 20 l7by MAURAJEN 02/21/2018 Value Type:Dept of Revenue Opinion and Order, Status: Approved, Tax 02/21/2018 12:10:00 Modification Year: 2016 by MAURAJEN

2/4 719/2019 02/21/2018 02/21/2018 Value Type: Dept of Revenue Opinion and Order, Status: Approved, Tax 12:07:00 Modification Year: 2015 by MAURAJEN 0212-H2O-1-Value Type: Dept of Revenue Opinion and Order, Status: Approved, Tax 02t2t/20•1 12:00:00 Modification Year: 2014 by MAURAJEN 11/01/2016 Tax Bill 11/01/2016 Assessor’s Authority for 2016 performed by AMANDAOLS 09:34:00 Recalculation 11/01/2016 Value Type: Assessors Authority ORS 308.242, Status: Approved, Tax Year: 11/01/2016 09:33:00 Modification 2016 by AMANDAOLS 07/07/2015 Seg/Merge 07/07/2015 Parent in Seg/Merge SM 150528, Effective: 01/02/2014 by DROME 08:30:00 Completed 07/07/2015 Seg/Merge SEG/MERGE BEGUN ON SM150528 EXC TL 01903MA1 FROM 07/07/2015 08:26:00 Initiated TL 01903_BY LTR 6/18/15, EFF 2015-16 by DROME Annexation 06/19/20 14 CREATE WILSONVILLE TIF ZONE 26755 SW 95TH AVE, ORE 06/ 19/2014 Completed 15:44:00 725 for 2014-Revise TCA Membership by DEENAMEH For Property 110/29/2012 Tax Bill 10/29/2012 Magistrate Order for 2011 performed by JUDYHAM TRC 2012-0331 16:55:00 Recalculation

10/29/2012 Value ‘Type:Magistrate Order, Status: Approved, Tax Year: 2011 by 10/29/2012 16:55:00 Modification JUDYHAM TRC 2012-0331 10/15/2Ol2tax Bill Assessor’s Authority for 2012 performed by JUDYHAM TRC 2012- 10/15/20 12 14:50:00 Recalculation 0185

10/15/2012 Value Type: Assessor’s Authority ORS 31 1.242, Status: Approved, Tax Year: 10/15/2012 14:49:00 Modification 2012 by JUDYHAM TRC 2012-0185 04/26/2012 Tax Bill 04/26/2012 BOPTA Order for 2011 performed by JUDYHAM TRC 2011-1425 07:34:00 Recalculation 04/26/2012 Value Type: Board of Property Tax Appeal (BOPTA), Status: Approved, 04/26/2012 Tax 07:33:00 Modification Year: 2011 by JUDYHAM TRC 2011-1425 01/28/2002 Seg/Merge 01/28/2002 Parent in Seg/Merge SM020206, Effective: 01/02/2001 by LAURIEB 12:41:00 Completed 5M020206 EFFECTIVE 2002-03: MERGE 3IWIIA 00600 iNTO 01/28/2002 Seg/Merge 01/28/2002 31Wi 1 01903 & AC CHG TO TL 1903 (-0.08 AC) BY P PLAT 2001- 12:34:00 Initiated 119; BEFORE 01/01/2002 by LAURIEB 03/15/2000 SegfMerge 03/15/2000 Parent in Seg/Merge 5M000044, Effective: 01/02/1999 14:22:00 Completed 03/15/2000 Seg/Merge 03/15/2000 1SM000044 FOR 2000-01 DIV INTO ROAD

14:21:00 Initiated I 07/01/1999 Oership at 07/01/1999 Quitclaim Deed: 95-53803, 8/1/95, 0 12:00:00 Conversion $ Receipts —— I Date Receipt Amount Amount No. AppliedL Due Tendered Change

05/13/2019 00:00:00 4615203 - $110,677.22 $110,877.22 $110,877.22 $0.00 02/14/2019 00:00:00 4602311 $110,877.22 $221,754.44$ 110,877.22 $0.00

11/15/2018 00:00:00 4550925 - $110,877.22 $332,631.66 $110,877.22 $0.00 02/20/2018 00:00:00 4411579 $141,542.35 $316,484.91 $158,242.45 $0.00 11/17/2017 00:00:00 4379863 -- $158,242.45 $474,727.36 $158,242.45 $0.00 05/18/2017 00:00:00 4237441 $83.33 $154,227.91 $154,227.91 $0.00 02/16/2017 00:00:00 4219399 $128,394.85 $308,455.83 $154,227.92 $0.00

3/4 719/2019 11/22/2016 00:00:00 4202749 $154,227.90 $462,683.73 $154,227.90 $0.00 05/17/2016 00:00:00 4043264 $0.00 $146,078.54 $146,081.54 $0.00 02/17/2016 00:00:00 4026934 $132,324.71 $292,157.08 $146,078.54 $0.00 11/10/2015 00:00:00 3911702 $146,078.54 $438,235.62 $146,078.54 $0.00 05/18/201511:47:00 3850891 — $29,853.83 $122,790.59 $122,790.59 $0.00 02/18/2015 00:00:00 - 3832681 — $122,790.59 $245,581.18 $122,790.59 $0.00 11/20/2014 00:00:00 3811594 $122,790.58 $368,371.76 $122,790.58 $0.00 05/19/2014 00:00:00 3656251 $44,136.75 $44,136.75 $44,136.77 $0.00 02/19/2014 00:00:00 — 3638399 $44,136.77 $88,273.52 $44,136.77 $0.00 Sales History

Sale Entry Recording Recording I SalelExcise Deed Grantee(Buyer)I ‘Other Date Date Date Number AmountNumber Type Parcels No Sales History Found

414 ______

0710112018-0613012019 REAL PROPERTY TAX STATEMENT * CLACKAMAS COUNTY, OREGON 150 BEAVERCREEK RD * OREGON CITY, OREGON 97045

PROPERTY DESCRIPTION MAP: 31W11 01903 ACCOUNT NO: 01420000 I I 26755 Sw 95TH AVE Code Area: 003-047 WILSONVILLEOR 97070 Acres: 9.76 12018- 2019 CURRENTTAX BY DISTRICT: I

COM COLL CLACK 8,070.34 VALUES: LASTYEAR THISYEAR ESD CLACKAMAS 5,360.22 REAL MARKETVALUES (RMV): SCH WLINNILS 68,344.34 RMV LAND 1532,127 1,744,120 SCH WLINN,WILSLOC OPT 14,966.10 RMV BLDG 15,467,873 17,608,080 EDUCATION TOTAL: 96,761.00 RMVTOTAL 17,000000 19,352,200

CITY WILSONVILLE 37,346.30 ASSESSED VALUE 17,000,000 18,438,055 COUNTY CLACKAMAS 35,026.77 COUNTY EXTENSION &4-H 726.46 TOTALTAXABLE AV 17,000,000 18,438,055 COUNTY LIBRARY 5,760.05 PROPERTY TAXES: 299,784.80 332,631.66 COUNTY PUBLIC SAFETY LOC OPT 4,572.64

* COUNTY SOILCONS Property taxes may be paid online, see applicable fees prior to paying. 726.46 * Payments may be mailed to P0 Box 6100, Portland, OR 97228-6100. F064 WF&R 22,577.40 When paying by mail, please make checks payable to Clackamas County FD64 WF&R LOC OPT 8,297.12 Tax Collector. OF PTLD • You may also pay in our office, located in the Development Services PORT 1,034.37 Building at 150 Beavercreek Road in Oregon City. SRV2 METRO 1,421.57 * Ifyour mortgage company pays your taxes, this information is for your SRV 2 METRO LOC OPT 1,770.05 records. URBAN RENEWAL COUNTY 197.28 URBAN RENEWAL WILSONVILLE 51,993.47 TAX PAYMENT OPTIONS Payment VECTOR CONTROL 95.88 Ootions Date Due Discount Allowed Net Amount VECTOR CONTROL LOC OPT 460.95 322,652.71 FULL Nov 15th, 2018 9,978.95 3% GENERALGOVERNMENTTOTAL: 172,006.77 213 Nov 15th, 2018 4,435.09 2% 217,319.35 113 Nov 15th, 2D18 110,877.22 COMCOLL CLACKBOND 2,874.49 COUNTY PUBLICSFW RADIOSYS 1,810.62 FD64 WF&R BOND 2,004.22 SCH WLINNsWILSBOND 52,010.06 SRV 2 METRO BOND 5,164.50 EXCLUDED FROM LIMITTOTAL: 63,863.89

2018-2019 TAXBEFOREDISCOUNT 332,631.66

0.00 IDELINQUENTTAXES: I TOTAL (after discount) 322,652.71

Delinquent tax amount is included in payment options listed below. (*) Delinquent taxes marked with an are subject to foreclosure if not paid on or before May 15th.

The on-line tax statement Information reflects the certified property tax as of the October certification date for the tax year referenced. This information does not reflect any tax payments, value corrections, or delinquent interest on an account after the due date listed. Ifyou have questions or need current tax balance information, please contact our office at 503-655-8671. Our office hours are Monday through Thursday from 7:00 am to 6:00 pm; Clackamas County offices are closed on Fridays. You can leave a voice mail message or email us at PmpertyTaxlnfo©co.clackamas.or.us, our goal is to respond to you on the following business day. ______I- ______

Narrative: N Ill OWNER 75055 II TNt PURPOSE OF TIWS 509GEV ID ED lOCATE *10 610688001ff fit MOSRES 0! TilOSO TRACTS OF WID FOlD V 6RASS DCC DESCW6W TN PUtt 69-016140 MID 95-053803 ESCWT TAUT PORTION CAflTD AT PU AS. 97’AS1207S. ESRCMIMAS COUNTY FEED RECORDS, MID PARflTflI 510 TRACTS ACCDRDNG TO THE OTT OF Surveyor’s Certificate Partition Plat No. A&&/-//Q 963090815. CASE nor 61014001 04 AR SI. I I, CART 8. CPEEL HEREBY DECLARE INST I *8W CORRECTLY SURGETED MID 0699E3 THE 006TH MID SDEITH 0/4 CORNERS OF SECTION II WERE LOCATED TO ESTA&JSH TIC NORTH-SOUTH WITH PROPER NOPSUENTS ThE 6110 REPRESENTED ON ThE MAIESED P697.1-TN NAT. NE 1/4 & NW 1/4 SEC. 11. L3S.. R.1W., W5M. MIOSECTION [NIL S Dl•34’21’W POt PS 23744 *45 USC) MONO THIS 61(0 FOR ThE aIDS or 6UR*10 80*0 A TRACT CF LASSO STUNTED tITHE NCRTHUSO CAIARTER ARC NORTHWEST LOCATWO THE NDRTHMILY WEST [NIL OF TNt PROPERTY. DEW DISTAJACE PROM THE NORTH CORNER 1/4 MIT SESNITER OF 5005001 II. TCWNTAIP 3 SlOTH. WAITE I WEST OF THE DALLAMETTE - DEW MOSS SNORE AflUEO TO LOCATE TUE WESTEWET NDRTH PROPERTY ONE PER E 693. PACE *08- ThE City of Wilsonvilie, Clockomas County MERTEQI. CITY CF WSS010CLE. COUNTY OF CCACKNAAS *30 STATE CF 08(0081, 60710 WEST WE WAS LOCATED 164 RU EAST *14064 PUT LAST OF 61041000405 FOUND PER PS 27100100 STREET MOlE PANTSCEIDARLY 0050099w AS FDEL50: DEDICATION PER PU *0. 65-268850. TOt SOUTU ONE WAS LOCATED 35 RET AND 25 pm NORTH AS SAOWN Oregon a’ — I SPUT *00 PEN 61096800005 FOUND AT fit CENTTRUNE Of SW PREOANI COURT PER PS 19911. PS 05910, FR *0.92 0000801NG ATONE TETCNL P500. A Sr S/El SOIl ROT WITH A Am PLASTiC CAR 63594 *140 FEE NO. 95-060079. ThE EAST LEt WAS EOCATTD iT RET WESTERLY PROM FOUND CENTTRSJC !‘? I OISCWRED UA9Y 9. CARL PLO 42648 ATONE SOUTOOIEST CORNER OF THAT TRACT MONUMENTS P014 002591E fit EASTTALY 609196 ONE WAS LOCATED P09 DEW OIDTMICE PROM TUE 9108914 S OF [MID TESCR9C) IN FR ND. 87—025015. CEACKAIAAS COUNTY RECORDS. —, 9/4 CORNER MIT DEW MOSS PER FEE NO. 972S07S. DEW 598 COOlER OURS SOUTH 0I34’29 WEST. 1701.80 RU PROM TIC NORTH I/S p. OACTAUA2 COUNTY SURIET RECORDS CT.ACRMAAS COUNTY DEED RECORTT CORNER OF SAID SECTION IT; TOW-lICE CONTSNOFIG SOUTH DT’34’210 WEST. 1(8.10 Surveyor. R—T PS 23744 0—I RE 60. 69—095690 0—9 FR *0. 85-068840 FEET ED THE SOUTHEAST CORNER SE TT4IT TRACT OF WAD OFSCRNED II 0006 692. 011 Weddle & Atioc.. Inc. 5-2 00 10911 0—2 PU NO. 95—053903 0—9 RE NO, 42 53996 PAGE 008.598 EtCO RECORDS; THENCI BLOND SAD SOUTH ONE NORTH 05’SI’II’ U I 0700 SW Skyline Blvd. 5-3 PS 23021 0—3 PU 00, *7—025015 0—50) PU ND. 62 53890 WEST. 1142.64 P005 TO ThE EAST ROOT OF WAY ONE OF SW 41951410 9000, Suite lOS 5-4 PS 01108 C—i R €92. PACE 808 0—IT) BOOS 263 PAGE 6*3 IEOCATED BY FR ND. 50-060582. Sb [WOO RECORDS; THENCE ALDIG S58 EAST 1—5 PS 25110 0-5 RE NO.85-068979 5-12) PU 110. 59—TOUTSO ROIl OF WAY ONE SOUTH 0I’T4’56’ WEST. 362.03 RU TO THE NDRTN 610011 OF WAT , or an . o o — 4 9-6 PS 4488 0-N PEE NO. IP0127R8 [THE OF SW ERSESIMI COURT, TEOCATTO AT PR NO.58-068879. PEE ND- ‘ %-n. (503) 292—8080 P1 9113090101 0(25*0(55 [LOOTER 0—7 EU 10. 95-012267 89—072781 NIT REND. 92—0530*6. Sb DEED RECORDS; THETa ALONG 5800 I 1—800—222—00*3 NORTH RIGHT OF WAY ONE SOUTH 1105171’ EAST. T031.IT PUt ID MO ANSI SCALE- I’• — TOO Par (5031 262—0026 PROFESSIONAL papa; THENCE SOUTH SIOSW REST. TOED RU Tool MOSS PORFT; ThENCE I I NOTES: SOUTH *flT’2r EAST. 102.17 FEET TO NI NITES POINT; TSOOS SOUTH Wr4E’2N I March 29. 2001 I. TIC PROFERTY THORN NORtON ID SOW-RET TO CW0100 NW EAST. 407.33 pm TO TIlE 6E001W0 OF A 4030 FOOT TMOSNI CURIE TO TIC [In; 6 I EASEIWNT RESTRCOOIS PEN OW OF OF WtS&t,tL CASE RI 00. 95 MI SI. INflICt ALERO ThE ARC OF SAD CORNS 90-71 RET TH6OWAI A CENTRAL 001 OF In IRE 07-623010 nfl 0.15 .30- 6105050’ (TIC LONG CHORD BEARS NORTH 4101607’ EAST. 58.03 POW) TO TIC RASUCRI 2.19W SSEWALX EASIMOAT *9 PARCELS ID FOR fit DOIEPH OF OlE C IS’ OWE OTT OF WLSDPMLLE. La WEST ROOT OF WAY ONE OF SR 05Th ASETRAL ODESTED DY PU *0. 55-003900. I R *02. P455008 SAD SEED RECORDS; INENcE ALONG SAD REST ROOT OF WAY ERIE 0000H 0I’T479 3. PERMMI000 R041-OFWAT MID EASEMENT FOR PSEECRE. @108 MO EAST. 4*0.08 RU; THENCE [IRUNO SAD WEST RIGHT OF WAY ONE NORTH 99’ISW EASOIOITS lAS. I, ARC IN PARCEL I, ME 080480W UNTO 80090 2 3. WEST. 624.43 RU TO TIC PETHS POlIO. TUE OW OF WREOIFEI.SL _J FEE 610. 97—0 L4Y J _,/z ; FOP DES DESEIIDOR II, COIITA*0140 mORON 12.70 ACRES. , N W453)W 524 DY 15 WEt REECIRE INItIAL oiwr ‘ pznror N RflIiT’W I T506AMSSOI L SMY 8. DCL OR CROW 5010EV TT4NT 6004 692. PAGE - 6804 I LaE EASETIERT I 50 OAR EXACT P SE TIC 81106446. NM 809 . — ‘WSiüj’ ROSA Sit N WA RI SYW —_ PACE 656 I I. 62.5111 12-S 59 N 61051111W 1T4164 Tjtnp.sT — 603 PEE 50. P.- —— FE -. 195020 21’22’3TTE — N — ;SSR• 01445’ ..-- ..0219_. ‘‘—‘; Ill — I EASEMO40 to, SEE SETIC 6’ DETAIL 5 irp;- SR NOTE 1 508Cr-SE 82+Rt4 Parcel 2 7.T-p I Parcel 1 9 r1’1 9.I6Ac,es 6.D2AETPT

‘. - 7.TL4A ,. S TITItifl 9•’ , I! 011 3 - i nn 293.80 —N11.1 ‘N” PEE 00. 09—064811 C Ii’ 0 SST’06’2fl I /1 -‘i C II 1. . 4) \ I , U 3*2.02’ TwE71$oY’ SESNOTEJ *105505 I I “so’, I o.oo R — 40.08’ Or —— tlfl- REND. 89—084870 O08?9W : 101WE300 OARTflj( C.2ison 6ffOF4fl—qy¼ T PU WE fl-07fl67 I SCSI.—1)I C - 5533’ I • I 72479’ A — 027206 O7) I I :: N*F46’2TW 5470’ s,T NOT 1228TE ‘Tr_rrr ‘ ill2T7 5o84826E\ N6r 322 T E 72 29 ‘L’ — II 101 I 172 6 0-ST “ SW 2A0-IT,j_ 4 9 Freeman Ct — N 53 01041’zRTW 551.10’ fRS93 ‘%.P I 50615131.5 102.27 11101 90• 9-12) 00 O ‘SCENDTE2. App rova1sa_ P—TI Declaration STAEO [WCATOI wpeuto 2081 RE ND. 12 53800 STWm 06OFA5Ot Ia AL PESEES 10 11W-SE PRESENTS 1*81 ANAl U UPTON. (DEWS WUIUA8 Alt 0WIH NM OF flOAR1I WESOIICU HS2COSIES. 64 LLC. ARC TIC ERRORS SE lilt [806 FORCER AS PIRRl I 918 .099 C OVSRCSS CENTER an. D TIC O06ER OF TIC 040 0005161 AS PIACEL 2 RSEIESNIYW 08 TIC 41*8220 66*1096 I PARTOICART DESCE09S W ONE ICLONEARNWID 558951091 IDTRTPCME 490 64468 CAJSOT lIE CITY CF WtSOYAYSU-COW - OWL 08OCT09 LEACRANAS COUNTY Sl1(GEYOR SlAt 09 .tSYO 958 PARTOOIEN WIT P56001112 IA0WN ICIER!. TOO PLAY ID URTECI TO Legend: 0 lAID PUT 801888 AS 0009 OR 90069 R9000A NO C0A’0965 To TIC P0Ola I OF Ton’ S I SOUl ML TIDES. FEES. ASSESSMENTS MO 019CR ONE 08E001 001510 50851155. %zt f—n—-r OTW AS P001865 WE 085 92.051 aIDE 0 6/10 Er WON W/RPC EASOORED ‘tART C 001W-S 435110 DEE ON SE_UI P40 TICS ILAmI 29,2081. -. OTT SE ‘ISSOINtLI P51N14110 DRECTSR CERTWDS t-t1J.1 Go 1081 * . am?t 610580,100 SIASlOFO ICUONS RE918. MINtO 4112 91A4009 — 909*8 I/I COOlER MDIAJM0O AS NOIET ON TIlE WAR. 1 o, P• c1 Acknowledgement 0 P069403-0/2- AEIAIRSN CAP W CDCRSE HWSTCN ELnINlr12sL3E92Tl,C?aEacR p STANEW TO.S.O.O.L OURIEGE[E STATE OF P914. 908.. ND RECORD. 00-Win P30W ILL OP Tics 08030115. TOO — DAY PSL 08 SE 1501. P9950681ST 4PREARO .0*1 61. 0161*0 NIT I4OVFSIU*C, • POUND 5/10WONROU W/WC PIS0 THIS 337’ PU P025090. I0WIN j9W RE 007n.827t bA._a £ 98Th REjOINS MID WINDERS OF 09581(10W ISSNTU. AS L_I_C_ 900 WRIl IDA,Y 650984 08 SAY TINT THEY ___ flSTrne [EPUTY IEEIDRROIT pitay MW IDEIIAUII.Y 604811 SE 510 NORTh 9550*801 ASSOTATEL LEt. - — - - —_ - • 61 658901-3/10 806ED STAMPER STATE OF ORFSOR 9 10 DSC P513701025110. WRITE OF EUCASAIAS ACknEççljment I 5 FaRT T/r WON , ND REC096. STATS OF I 08 RODEO COOfl 19668 TIlE AITACTIS PARITOl _TU?13f1Z15._..I S S 1cY980 P0ac00 CESAITY { E0*WR400 13108*1 P617 WAS RECEPICO 900 TEOWO 08 TIlt OAT I A FoLIo 6/10008906 WflPE PCW8EO 2ARO00TRI-T4T09w [N 13910 PEP 1000 Ia PUPIl El 116. P4ESOITT. 816 50 fl,MY SE “7 5-f 081, P995064457 NEPEAROD “ ATTIW P0 18199. OF TN’ F E I AT.&040•WOCW .E. . Owl C 1015001,0613 65*0 OLTERORNOR SAY THAT HE ACRIOSALESOES TNE PORECOPO INSTTLAAOIT FREELY ISIS WLIJITA9;LO - 7hs L4’s,,IInsan A 01ST 3/F WON WOO W/9’PC POIRWER WMER ASSOC.. FE.’ PER P077181.

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Township 3 South BanaL, A parcel of land Located in the orth one—hall of Section II, described as foLlows: I West or the Willamette Meridian n Clackamas County. Oregon, one—quarter corner of Said Secticnl I; thence along the West EEOINMNG at the North mimi? ec 29 line of the iorthesst one—quar iti of aL zection Z:th 2! degrees s pOXTIL begini,ing of the herein described -- seconds West • 1613.90 feet to the true or West South 01 degree 34 minutes 29 seconds - parcel; thence continuing along said line said tmst l±ce North 8 i’ea— 51 minutes II Wut. 36.11 reetl thar,ca leavIng 396.91 seconds West, 120L98 feet; thence South 01 degree 16 minutes 25 seconds West 51 seconds East 1732.11 feet to a point on • SB degrees 69 minutes leet; thence South said - the Westerly right of way line or proposed S. 11. 95th avenue; thence along degree 18 minuteS 30 seconds East 632.55 feet; - Westerly right of way line North 01 35 seconds West thence leaving and right of way Line North SB degrees 45 minutes 525.20 feet to the true point of beginning.

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PURCHASE AND SALE AGREEMENT

COMMERCIALASSOCIATIONOFBROKERSOREGONISWWASHINGTON PURCHASEANDSALEAGREEMENTANDRECEIPTFOREARNESTMONEY (OregonCommercialForm)

AGENCY ACKNOWLEDGMENT

BuyershallexecutethisAcknowledgmentconcurrentwiththeexecutionoftheAgreementbelowandprior todeliveryofthatAgreementtoSeller.SellershallexecutethisAcknowledgmentupon receiptoftheAgreementby Seller,evenifSellerintendstorejecttheAgreementormakea counter-offer.InnoeventshallSeller’sexecutionof thisAcknowledgmentconstituteacceptanceoftheAgreementor anytermscontainedtherein.

PursuanttotherequirementsofOregonAdministrativeRules(OAR863-015-0215),bothBuyerandSeller acknowledgehavingreceivedthe OregonRealEstateAgencyDisclosurePamphlet,and by execuUonbelow acknowledgeandconsentto theagencyreiaUonshipsinthefollowingrealestatepurchaseandsaletransactionas follows:

(a) SellerAgent:StuPetersonofMacadam Forbes(the‘SellingFirm]istheagentof(checkone): O Buyerexclusively; Sellerexclusively:U bothSellerandBuyer(‘Disohs LimitedAQency’).

(b) BuyerAgentMattJohnsonofCushma9andWakefield(the‘BuyingFirm’)the is agentof (check one): Buyerexclusiv&y;C Setlerexclusively; both SeflerandBuyer(‘DisclosedLimitedAgency’).

IfthenameofthesamerealestatefirmappearsinbothParagraphs(a)and(b)above,BuyerandSeller acknowledgethata principalbrokerofthatrealestatefirmshallbecometheDisclosedLimitedAgentforbothBuyer andSeller,as morefullyset forthintheDisclosedLimitedAgencyAgreements thathavebeenreviewedandsigned byBuyer,Sellerandthenamedrealestateagent(s).

KNOW D

Date: I 19 Buyer (phntn C D- . Buyer(print) (sign) ,%‘ Date: Seller:(pnt) (sign) //%y’4 Date: Seler. (printI’c. (sign) ,C— Date: (1 JVJ Zth’Y

(NoFurthertextappearsonthispage.]

(00045955,1) C 1997CvmmeialAssodatnofSmkecsCREGON1SWWASHINGTON(Rev02111) PuRCHASEANDSALEAGREEMEffANDRECEIPTFOR EARNESTMONEY(OREGON) ALLRIGHTSRESERVED PURCHASEANDSALEAGREEMENTANDRECEIPTFOREARNESTMONEY

This PURCHASEAND SALE AGREEMENTAND RECEiPT FOR EARNESTMONEY(this 2 ‘Agreement’)is accepted, made and entered intoon the laterof the two dates shownbeneath the parties’ 3 signatureson the signaturepageattachedhereto(the ExecutionDate’): 4 5 BETWEEN:NorthWilsonviBeAssociates(Seller) 6 Address:P0 Box15523attn. MollyBulloch,SeattleWA98115 7 HomePhone: 8 OfficePhone:206 6058533

9 FaxNo.: [0 E-MaH: 11 12 AND: State ofOregonand/orassigns(‘yf’) 13 Address:1225FerrySt. SE, WOO,Salem,OR97301-4281 14 HomePhone: ‘5 OfficePhone: 5034283362 16 FaxNo.: 5033737210 17 E-Mail: JR 19 20 1. Purchase and Sale. 21 22 1.1 Generally. Inaccordancewiththis Agreement,Buyeragrees to buyand acquirefromSeller,and 23 Seller agrees to sell to Buyerthe following,all of whichare collectivelyreferredto in this Agreementas the 24 ‘Property:’ (a) the real propertyand all improvementsthereongenerallydescribedor locatedat 26755SW95thin

25 the Cityof W’ilsonville. County of Washington, Oregonlegallydescribedon ExhibitA,attached hereto (the ‘Real 26 Estate’) (if no legal description Is attached, the legal description shall be based on the legal description 27 provided In the PreliminaryReport (described in Section 5), subject to the review and approval of both 28 parties hereto), includingailofSeller’sright,titleand interestinand to allflxturss,appurtenances,and easements 29 thereonor relatedthereto;(b)aWef4el4es-4ffht--t1tloand intece€t,ifany,in and to any and allloace(o)towhichthe 30 Rca) Ectat&s-sbjeet-(eac-a%ease; and (c)any andallpersonalpropertylocatedon andor used inconnection 31 withthe operationof the RealEstate,including all furniture located on the Real Estate on the date hereof aid 32 awned-hy-Setlef-(thePersonal Property’),tMhece-are4nyeasesrseeSeotien4r1rbe1owv—The-eeoupaneies-oWhe 33 Prepe#ypucsuantto any Leacocarc referredto as the ‘Thnanciec’and4he-eceupaetsthereundcrarc refcrrcdto a: 34 !Tenants.”Ifthere is anyPersonalProperty,see Section21.2,below. 35 36 1,2 Purchase Price, The purchasepriceforthe Propertyshall beTwentyThreeMillionNineHundred 37 FiftyThousanddollars($23,950,000)(the ‘Purchase Price’). The Purchase Priceshallbe adjusted, as applicable, 3K by the net amount of creditsand debits to Seller’saccountat Closing(definedbelow)made by EscrowHolder 39 pursuanttothe termsofthisAgreement.The PurchasePriceshallbe payableas follows: 40 41 12.1 EarnestMoneyDeposiL 42 (a) WithinTwo () days of the ExecutionDate, BuyershaEdeliver into Escrow(as 43 dened herein),forthe accountofBuyer,$250000 as earnest money(the‘EarnestMoney’)inthe formof: 44 QPromissory note(the‘Note’);QCheck; or Cashorotherimmediatelyavailablefunds. 45 46 Ifthe Earnest Moneyis beingheld by the Q Selhr.gFirmQ BuyingFirm,then the firmholdingsuch Eamest 47 Moneyshalldeposit the Eames Moneyin the Escrow (as herenafter defined)C SellingFirm’sClientTrust lq1us’iovr cy.i9.t9 p0C45*5; I) 01997CommersIAsocia9onofBrokersOREGOt#SWWASH[NGTON(Rev.O2ll) PURCHASEPJJDSALEAGREEMEnTANOREcEIPTron EARNESTMclEv (OREGON) ALLRIGHTSPESERVEO 48 AccountC BuyingFirmsClientsTrustAccount,nolaterthan5:00PMPacificTimethree(3)businessdaysafter 49 suchfirm’sreceipt,butinnoeventlaterthan thedatesetforthinthefirstsentenceofthisSection 1.2.1(a), 50 (b) IftheEarnestMoneyisintheformofa Note,itshaltbedueandpayable nolater 52 than5:00PMPacificTimethree(3)days afterthe ExecutionDate; aftersatisfactionorwaiverbyBuyerofthe 53 conditionstoBuyersobligationtopurchasethePropertysetforthinthisAgreement;orCOther —. Ifthetermsof 54 theNoteandthisAgreementconflict,the termsofthisAgreementshallgovern.Ifthe Noteis notredeemedand 55 paidin fullwhen due, then:(i)the Noteshallbe deliveredand endorsedto Seller(ifnotalreadyin Sellers 56 possession):(ii)SellermaycollecttheEarnestMoneyfromBuyer,eitherpursuantto an actionontheNote oran 57 actiononthisAgreement;and(hi)SellershallhavenofurtherobligationsunderthisAgreement, 58 59 (c) ThepurchaseandsaleofthePropertyshallbeaccomplishedthroughanescrow(the 60 ‘Escrow’)thatSellerhasestablishedorwillestablishwithWFGNationalTitle(the‘EscrowHolder)within— days 61 afterthe ExecutionDate.Exceptas otherwiseprovidedinthisAgreement:(I)anyinterestearnedon theEarnest 62 Moneyshallbeconsideredto be partoftheEarnestMoney;(ii)the EarnestMoneyshallbe non-refundableupon 63 satisfactionorwaiverofallConditionsas definedinSection2.1;and(iii)theEarnestMoneyshall be appliedtothe 64 PurchasePriceatClosing. 65 66 1.2.2 BalanceofPurchasePrice.BuyershallpaythebalanceofthePurchasePriceat Closing 67 by cashorotherimmediately availablefunds;orC Other_. 68 69 1.3 eetionO344ike d&çge-Eeeh-pa#y-acknowlodgecthatefthorparty(asapplicable, the 70 71 Reveniieede.of4s6a&amended-lnveMng ho Property (oranylogallotthoreofl(a‘1031Exchange’).Thenon 72 exchangingpartywithrospecttoa 1031Exchangeisreferredtohominasthe‘CoonemfinoParty.’BuyerandSeller 73 each herebyagreesto reasonablycooperateMththe otherincompletingeachsuch 1031Exchange;provided, 74 however,that suchcooperationshallbeattheExchangingParty’scolaexpenseandshallnetdelaytheClosingfor 75 ho Property.Accordingly,the Exchanging Partymayassignthe ExchangingPartfl rightswithmepootto ho 76 Pmpcrt’,’(or any legallottheiofl to a personor ontityforthe purposeof consummatinga 1031Exchange 77 (‘Intemiediar,”),providedthatsuchassignment-doesnotdelaytheClosingfortheProperty(orapplicableiogdtt 78 theoO—ec--ethe+se.—ceduse—oc.-dimmisli—.theExchangingPadjc liaW+tiesor obligabonchorowcr Stiob 79 ass1gnmentbytheExchanging-Pa4yshallnetreleasetheExchangingPartyfromtheobligationsoftheN)wliinTng 80 Partyunderthis-Ageemont.TheCooperatingPartyshallnetsufferanycosts,expensesor tiabilitiocforcoopamling

82 agmoctoindcmnij,dofendandholdho CooperatingPartyharmleccfromanyliability,damagocandcode adcthg 83 outoftho1031Exchange. 84 85 2. ConditionstoPurchase. 86 87 , 2.1 BuyersobligationtopurchasethePropertyisconditionedonthefollowing: 88 ILLs CNone;t 90 VJ Within)W’daysof the ExecutionDate,Buyer’sapprovalof the resultsof (collectively,the 91 ‘GeneralConditions’):(a) the Property inspectiondescribedin Section3 below;(b)the 92 fri 111 documentreviewdescribedinSection4 below;and(c)(describeanyothercondition)_; 93 “2”' Buyerwillhavetherightto extendthe DueDiligencePeriodtwotimesfor30dayseach 94 ,. by providingan additional$50,000foreach extension.Allextension paymentswillbe ‘ -‘c\ ‘ non refundablebut applicableto the purchase price and releasedto Seller upon 96 payment

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102 lao 146 • PropertyTaxBills 147 • Permits,WarrantyInfo,and/or ServiceContractSummaries 148 • ExictingLooseAgmemeats-(none) 149 • OtherProperty-relatedinformation ISO 151 5. TitleInsurance.Within7 businessdaysafterthe ExecutionDate,Sellershallcausetobedeliveredto 152 Buyer apreliminarytitlereportfromthe tidecompany(the‘TitleCompany”)selectedbySeller(the“Preliminary 153 Report”),showingthe statusof Selle?stitleto the Property,togetherwithcompleteand legiblecopiesof all 154 documentsshownthereinasexceptionstotitle(“Exceplions],BuyershallhaveSevenbusinessdaysafterreceiptof 155 a copyofthePreliminaryReport andExceptionswithinwhichtogivenoticeinwritingtoSellerofanyobjectionto 156 suchtitleor to anyLiensorencumbrancesaffectingtheProperty.Withinfivebusinessdaysafterreceiptof such 157 noticefromBuyer,SellershallgiveBuyerwrittennoticeofwhetheritiswillingandableto removetheobjected-to 158 Exceptions.WithouttheneedforobjectionbyBuyer,Sellershall,withrespecttoliensandencumbrancesthatcan 159 besatisfiedandreleasedbythepaymentofmoney,eliminatesuchexceptionstotitleonorbeforeClosing.Within laO daysafterreceiptofsuchnoticefromSeller(the“TitleContingencyDate”),Buyershallelect whetherto: (i)purchase 161 thePropertysubjecttothoseobjected-toExceptionswhichSelleris notwillingorableto remove;or (ii)terminate 162 thisAgreement.IfBuyerfailsto giveSellernoticeofBuye?selection,thensuchinactionshallbe deemedtobe 163 Buyers electionto terminatethisAgreement. Onorbeforethe ClosingDate(definedbelow),Sellershallremoveall 164 Exceptionsto whichBuyerobjects andwhichSelleragrees, or is deemed to have agreed,Selleris willingand able 165 to remove. AllremainingExceptionsset forthinthe PreliminaryReportand those Exceptionscaused byor agreed 166by to Buyershallbe deemed‘PermittedExceptions.” 167 168 6. Default;Remedies, Notwithstandinganythingto the contrarycontainedinthisAgreement,inthe event 169 Buyerfailsto depositthe Earnest Moneyin Escrowstrictlyas and whencontemplatedunder Section1.2.1above, 170 Seller shallhave the rightat any timethereafter,but priorto Buyer’sdepositof the Earnest Moneyto Escrow,to 171 terminatethis Agreementand allfurtherrightsand obligationshereunderbygiving writtennoticethereofto Buyer. If 172 the conditions,if any, to Buyer’sobligationto consummatethistransactionare satisfiedor waivedby Buyerand

I7J Buyerfails,throughno faultofSeller,to close on the purchaseofthe Property,Sellers sole remedyshall beto retain 174 the Eamest Moneypaid by Buyer In the event Sellerfails, throughnofaultof Buyer,to close the sale of the 175 Property,Buyershallbe entilledto pursueany remediesavailableat lawor in equity,includingwithoutlimitation,the 176 returnofthe EarnestMoneypaidby Buyeror the remedyof specificperformance.Innoevent shalleitherpartybe 177 entidedto punitiveor consequentialdamages, ifany, resulting1mmthe other party’sfailureto close the sale of the 178 Property. 179 180 7. ClosingofSale. 181 182 7.1 Buyerand Selleragree the sale ofthe Propertyshallbe consummated,inEscrow,Q onor before 183 or fl..days afterthe conditionsset forthin Sections2.1,3,4 and 5 have been satisfiedor waivedin writingby 84 Buyer(the“Closing” orthe “Closing Date”).Thesale ofthe Propertyshallbe deemedclosedwhenthe document(s) 185 conveyingtitleto the Propertyis/aredeliveredand recordedand the Purchase Price is disbursedto Seller,In no 186 event shall closIng occur laterthan January 3rd, 2020, 187 188 7.2 At Closing,Buyer and Sellershalldeposit with the Escrow Holderall documents and funds 189 required to close the transactionin accordance with the terms of this Agreement. At Closing,Seller shall 190 delivera certificationin a formprovidedby the EscrowHolderconfirmingwhetherSeller is or Is not a ‘foreign 191 person’as such termis definedbyapplicablelawand regulations. 192 193 7.3 At Closing,Sellershall conveyfee simpletitleto the Propertyto Buyerby statutorywarranty 194 deed or Q — (the“Deed’).AtClosing,Sellershallcause the The Companyto deliverto Buyera standardALTA 195 formowners policy oftitleinsurance(the ‘TitlePolicy”)inthe amountof the Purchase Priceinsuringfee simpletitle

(00015955;l) 01997 canm8rdalAssodaUonoferoen 0REG0N’swWASHINGTON(Rev.02111) PURCKASEANDSALEAGREEMENTANDRECEIPTFOREARNESTMONEY(0REGONI All RI(HT RPSFPVFn 196 tothe Properlyin Buyersubjectonlyto the Perthtted Exceptionsand the standardprephntedexceptionscontained 197 in the TitlePolicy. Sellershai reasonablycooperatein the issuance to Buyerof an ALTAextendedformpolicyof 198 hUeinsurance. Buyershal pay any addition&expense resultingfrom the ALTAextended coverage and any 199 endorsementsrequiredbyBuyer. 200 201 8 ClosingCosts; Prorations.Sellershallpaythe premiumforthe TitlePolicy,orovided,however,ifBuyer 202 elects to obtainan ALTAextended formpolicyof tide insuranceand/or any endorsements,Buyershall pay the 203 differenceinthe premiumrelatingto such election.Sellerand Buyershalleach payone-half(1/2)ofthe escrowfees 204 chargedbytheEscrowHolder,Anyexcisetaxand/ortransfertaxshallbe paidequallyby BuyerandSeller, 205 Realproperty taxesforthetaxyearoftheClosing,assessments(ifa PermittedException)7peffienal-preperly-taxes 206 rents—and--ethec—ehaces—a6sieg—m-exisUng—Tenandes—pa%-fec--the—menth of Clocing,interect on assumed 207 eflgationa-and utilitiesshallbe proratedasoftheClosingDate.Ifapplicable,prtpaidmnft,cocuritydepocift,atd 208 otheF-u000mod miundabtodopoc4ts roTatingto Tenaneiesshafl4e-assigned-anddeliveredto Buycrat Clocing.[1 209 SellerQ Buyer N/Ashallbe responsibleforpaymentof alltaxes, inlerest,and penalties,ifany, uponremoval 210 ofthe Propertyfromanyspecialassessment orprogram. 211 2)2 9. Possession. Seler shalt deliverexclusivepossessionof the Property-s1ibje44e--the4eaneies-if-ac4y 213 existir.gac oftheClocingDatc,to Buyer[SJon the ClosingDateorEl—. 214 215 10. Conditionof Property. Seller representsthat Sellerhas receivedno wfittennoticesofviolationofany 216 laws,codes, r&es,orregulationsapplicabe to the Property(‘Laws’). Sellerrepresentsthat, to thebest ofSeller’s 217 knowledgewithoutspecificinquiry,Selleris notawareof any such violationsor anyconcealed materialdefects in 218 the Property. Unlesscaused by Buyer,Sellershallbear all riskof loss and damage to the PropertyuntilClosing, 219 and Buyershallbear such riskat and afterClosing.Exceptfor Seller’srepresentationsset forthinthis Section10 220 and the attachedExhibitE, Buyershallacquirethe Properly“ASIS’withallfaultsand Buyershaflrelyon theresults 221 of its own inspectionand investigationin Buyer’sacquisitionofthe Property.It shall be a conditionof Buyers 222 Closingobligationthat allof Seller’srepresentationsandwarrantiesstated inthisAgreementare materiallytme and 223 correeLon the ClosingDate,Seller’srepresentationsand warrantiesstated in thisAgreementshall surviveClosing 224 forone (1)year.

226 11. Ooerationof Properly.Betweenthe ExecutionDate and the ClosingDate, Seller shall continueto 227 operate1maintan and insurethe PropertyconsistentwithSeller’scurrent operatingpractices. AfterBuyerhas 228 satisfiedor waivedthe conditonsto Buyer’sobligationto purchase the Property,and the Earnest Moneyis non- 229 refundable,Sellermaynot,withoutBuyer’spriorwrittenconsent,whichconsent shallnot be unreasonablywithheld, 230 conditioned,ordelayed,enter into: (a) any newleases or occupancyagreementsforthe Property;(b)anymaterial 231 amendmentsor modificationagreements foray existingIease5or occupancyagreementsfor the Property;or (c) 232 anyservicecontraclsor otheragreementsaffectingthePropertythaIare notterminableat the Closing. 233 234 12. Assignment.AssignmentofthisAgreement: is PROHIBITED;Elis PERMITTED,withoutconsent 235 of Seller;Elis PERMITTEDONLYUPONSeller’swrittenconsent;fl is PERMITTEDONLYIFthe assignee is an 236 entityowned and controlledby Buyer. Assignment is PROHIBITED,If no box Is checked, IfSeller’swritten 237 consentis requiredforassignment,such consentmaybe withheldinSeller’sreasonablediscretion.Inthe eventofa 238 permittedassignment,BuyershallremainliableforallBuyer’sobligationsunderthisAgreement. 239 240 13.Arbifration. IFANDONLYIFTHISSECEONISINtTtA4ED-B%-EAGH-OFBUYERANDSELLER,ThE 241 FOLbOWING4NAU—ARPIZY-Q-TMIS-AGREEMEN4i 232 243 ANYDISPUTEBETWEENBUYERANDSELLERRELATEDTOTHISAGREEMENT,ThEPROPERTY,OR.JNE 244 TRANSACTIONSCONTEMPLATEDBYTHISAGREEMENTWILLBERESOLVEDBYARBITRATIONGOVERNED 215 WYTHE ORECON UNIFORMARBITRATIONACT (ORS 36.600 ct cog.) AND, TO ThE—E4ENT.-NOT

OD455S:1) C 1997coirtnescjalAss&an ci arDkt’SOREGOW5WWASHINGTON(Rev02)11) PURcHAsEANDSALEAGREEMD1TANDRECEIPTFOREARNESTMONEYtOREGON) ALLRIGHTSRESERVED ______

246 INCONSISTENTWITHTHATSTATUTE,CONDUCTEDINACCORDANCEWITHWE RULESOFPRAC1]CAND 247 PROCEDUREFORTHE ARBITRATIONOF COMMERCIALDISPUTESOF ARBITRATIONSERVICESOc 248 PGRND (‘ASP’). THE—AR&TWTIONSHALLBE CONDUCTEDIN—PORTL4NDT--OREGON--AND 249 ADMINISTEREDBYASP.WHICHWILLAPPOINTASINGIaE4RBIWMORHAVINGLEAST AT FIVE(5)YEARS 250 EXPERIENCEIN-THE-GO1¼4MgRG1A&REALESTATEFIE IN4HE— GEOGRAPHICAREA(IFBLANKISNOT 251 COMPLETED,PORTLANDMETROPOLITANAREA).ALLARBITRMIGWEARINGS-WILLBECOMME-NGED 252 WITHINTHIRTY(30)DAYSOFTHEDEMANDFORA BIRAT1ON-UNLESSTHEARBITRMQR4ORSHQWING 253 OF GOODCAUSE,EENDS THECOMMENCEMENTOF SUCHHEARING.ThE DECISIONOF THE 254 ARBITRATORWILLBE BINDINGONBUYERANDSELLERrANO—3UDGMENTUPON—ANYARBITRATION 255 AWARDMAYBEENTEREDINANYCOURTHAVINGJURISDICTION.THEPARTIESACKNOWLEDGETHAT, 256 BYAGREE!NCTOARBITRATEDISPUTES,EACHOFTHEMISWAIVINCCERTAINRIGHTSr-INCLUDINGITS 257 RIGHTSTOSEEKREME-PIS4NCOURT(INCLUDINGA RIgHTTOA ThLL BYJUR, TODISCOVERY 258 PROCESSESTHATWOULDBEATrENDANTTOACOURTPROCEED!NC,ANDTOPAR1]CLPME44-A4ASS 259 AGTIOW 260 261 InillaIcofBuyor nffialoof Seller 262 263 11. Affomoyc’Feoc. Inthe ovonta cult,aeflon,orbitmffon,or othorpmcocdingof any naturei*affioevar, 264 includingwithoutlimitationany pmcceding under the U.S. BankruptcyCode, is thcUtted, or (ho corioóc of mi 265 attorneyareretained,to interpretorenforceany providonofthisAgreementorwithrespect to anydisputorabifugth 266 thisAgmoment,thoprevailingor nondefaulting partyshallbc onUllodtorecoverfromthe lacingordobtfiUngpàily 267 itsaifomeyc’,pacgaIc, accountants’,andother—experts’footandallotherfoot, coctc,andexpencetxIIy 268 ir.cued in corneoIien—thecewith—{the—---In—the—entof cult,acUon,athitmbon,or otherpmceedi, the 269 amountofFeesshallbedetcined bythejudgeoraiator, shaHincludeallcost andcxpenses-incid-ewàny 270 appeal-o-view1-andshallbeinaddftiontoallother amountsprovidedbylaw. 271 272 15.SIaluIo Nclise. THEPROPERTYDESCRIBEDINTHISINSTRUMENTMAYNOTBEWITHINA 273 FIREPROTECTIONDISTRICTPROTECTINGSTRUCTURES.THEPROPERTYIS SUBJECTTOLANDUSE 274 LAWS ANDREGULATIONSTHAT,INFARMORFORESTZONES,MAYNOTAUTHORIZECONSTRUCTIONOR 275 SITINGOF A RESIDENCEANDTHATLIMITLAWSUITSAGAINSTFARMINGORFORESTPRACTICES,AS 276 DEFINEDIN ORS 30.930, IN ALLZONES.BEFORESIGNINGOR ACCEPTINGTHIS INSTRUMENT,THE 277 PERSONTRANSFERRINGFEE TITLESHOULDINQUIREABOUTTHEPERSONS RIGHTS.IF ANY,UNDER 278 ORS 195.300,195.301AND195.305TO 195.336ANDSECTIONS5 TO 11, CHAPTER 424,OREGONLAWS 27) 2007,SECTIONS2 TO9 AND17, CHAPTER855, OREGONLAWS2009,ANDSECTIONS2 TO7, CHAPTER8, 280 OREGONLAWS2010. BEFORESIGNINGORACCEPTINGThISINSTRUMENT,WE PERSONACQUIRINGFEE 261 TITLETO THEPROPERTYSHOULDCHECKWiTHTHE APPROPRIATECITYOR COUNTYPLANNING 282 DEPARTMENTTO VERIFYTHATThE UNITOF LANDBEINGTRANSFERREDISA LAWFULLYESTABLISHED 283 LOTOR PARCEL,AS DEFINEDINORS92.010OR 215.010,TOVERIFYTHEAPPROVEDUSESOF THELOT 284 OR PARCEL,TO VERIFY THEEXISTENCEOF FIREPROTECTIONFOR STRUCTURESANDTO INQUIRE 285 ABOUTTHERIGHTSOF NEIGHBORINGPROPERTYOWNERS,IFANY,UNDERORS 195.300,195.301AND 286 195,305TO 195.336ANDSECTIONS5 TO 11, CHAPTER424, OREGONLAWS2007,SECTIONS2 TO 9 AND 287 17,CHAPTER855,OREGONLAWS2009,ANDSECTIONS2 TO7,CHAPTER8, OREGONLAWS2010. 288 289 16. Cautionary Notice About Liens. UNDER CERTAINCIRCUMSTANCES,A PERSON WHO 290 PERFORMSCONSTRUCTION-RELATEDACTIVITIESMAYCLAIMA LIENUPONREALPROPERTYAFTERA 291 SALE TOTHEPURCHASERFORA TRANSACTIONOR ACTIVITY THATOCCURREDBEFORETHESALE. A 292 VALID CLAIMMAYBEASSERTEDAGAINSTTHEPROPERTYTHATYOUARE PURCHASINGEVENIF THE 293 CIRCUMSTANCESTHAT GIVERISE TO THATCLAIMHAPPENEDBEFOREYOURPURCHASEOF THE 294 PROPERTY.THISINCLUDES,BUTIS NOTLIMITEDTO, CIRCUMSTANCESWHERETHEOWNEROF THE

{50045955;1} C 1997CommeralAsscdaUonofBrnkenOREGDN!SWWASHINGTON(Rev 02i11) PURCHASEANOSALEAGREEMENTANDRECEIPTFOREARNESTMONEY(OREGON) All PIflHTSRESERVED 295 PROPERTYCONTRACTEDWITHA PERSONOR BUSINESSTO PROVIDELABOR,MATERIAL,EQUIPMENT 296 ORSERVICESTOTHEPROPERTYANDHASNOTPAIDTHEPERSONSORBUSINESSINFULL. 297 298 17. Brokerage Agreement. For purposes of Sections 14 and 17 of this Agreement, the Agency 299 Acknowledgementon page 1 thisAgreementis incorporatedintothis Agreementas iffullyset forthherein.Seer 300 agrees to paya commissiontoSellingFirmin the amountofeither Twopercent2%)ofthe Purchase Priceor 301 Q $_. Suchcommissionshallbe dividedbetweenSellingFirmand BuyingFirmsuch that SellingFirmreceives 302 Fifty— percent (Q%)and BuyingFirmreceivesfjjy percent(%). Sellershallcause the EscrowHolderto 303 deliverto SellingFirmand BuyingFirmthe realestate commissionon the ClosingDateor uponSellers breachof 304 this Agreement,whicheveroccurs first. If the Earnest Moneyis forfeitedby Buyer and retained by Seller in 305 accordancewiththis Agreement,in additionto any other rightsthe SellingFirmand BuyingFirmmay have, the 306 SellingFirmand the BuyingFirm,together,shall beentitledto the lesser of: (i)fiftypercent (50%)of the Earnest 307 Money;or (ü)the commissionagreedto above,and Sellerherebyassigns such amountto the SellingFirmand the 308 BuyingFirm. 309 310 18. Notices.Unless otherwisespecified,any noticerequiredor permittedin,or relatedto this Agreement 311 must be in writingand signed bythe partyto be bound. Anynoticewillbe deemeddelivered: (a) when personally 312 delivered;(b) when deliveredby facsimileor electronicmail transmission(in either case, withconfirmationof 313 delivery);(c) on the day followingdeliveryofthe noticeby reputableovernightcourier or (d) on the day following 314 deliveryofthe noticeby mailingbycertifiedorregisteredU.S.mail,postageprepald,returnreceiptrequested;and in 315 any case shall be sent by the applicableparty to the address of the other partyshown at the beginningof this 316 Agreement,unless that day is a Saturday,Sunday,or federalor OregonState legalholiday,inwhichevent such 317 noticewillbe deemeddeliveredonthe nextfollowingbusinessday. 318 319 19. Miscellaneous. Timeis of the essence of thisAgreement. Ifthe deadlineunderthis Agreementfor 320 deliveryof a noticeor performanceofanyobligationis a Saturday,Sunday,orfederalor OregonState legalholiday, 321 such deadlinewillbe deemed extendedto the next followingbusiness day. The facsimileand/or electronicmail 322 transmissionof anysigned documentincludingthisAgreemen:in accordancewithSection18shallbe the same as 323 deliveryof an original.Atthe requestof eitherparty,the partydeliveringa documentbyfacsimileand/ore!ectronc 324 mailwillconfirmsuch transmissionbysigningand deliveringto the otherpartya duplicateorigina!document. This 325 Agreementmaybe executedincounterparts,each ofwhichshallconstitutean originaland allofwhichtogethershall 326 constituteone and the same Agreement.ThisAgreementcontainsTheentireagreementand understandingofthe 327 parties with respect to the subject mailer of this Agreementand supersedes all prior and contemporaneous 328 agreementsbetweenthem. Withoutlimitingthe provisionsofSection12ofthisAgreement,thisAgreementshallbe 329 bindingupon andshallinureto the benefitof Buyerand Sellerand theirreapectivesuccessors and assigns. 330 withrespect to Sections 14 and 17, SellingFirmand BuyingFirmare thirdpartybeneficiariesof this Agreement. 331 The personsigningthis Agreementon behalfof Buyerand Theperson signingthis Agreementon behalfof Seller 332 each represents,covenants andwarrantsthat such personhas fullrightand authorityto enter intothis Agreement 333 and to bind the party for whomsuch person signs this Agreementto its terms and provisions. Neitherthis 334 Agreementnora memorandumhereofshallbe recordedunlessthe partiesotherwiseagree inwriting. 335 336 20. GoverningLaw. ThisAgreementis made and executed under,and inall respectsshall be govemed 337 andconstruedby,the lawsof theStateof Oregon. 338 339 21. Lopceftnd-Porsonal Pnpcrtv. 340 341 21.1 Leacec. 342 343 21.1.1 l( quimd by Buyer or Buycft lendor and pwMod for in such Tor.nt’c Looc, Seer 344 call ucc cornmeaIIj’ceaconable offert tD deliver to Buyer, at Icact — dayc (three (3)41-not flUcd-ln -before-The

(COO4555,l) 01997CanmierdalAssthatonofBrokersOREGONJSWWASHINGTON(Rev.02)11) PuRCHAsEANDSALEAGREEMENTANDRECEIPTFOREARNESTMONEY(OREGON) ALLRIGHTSRE5ERVE0 345 ClocingDate,a Tenanteotoppelcertificate,rexonablyacceptableto Buyer,portainlr to each Leaceat the 346 Properlyineffectac oftheClouh,gDate(each,a ‘Tenantctocoor). SuchTenantEctoppoicshallbodatedho 347 more than — days (fifteen(15)11notfilledIn) priortotheClocingDateandshallcorlif,’,amongothorthings—{a) 348 thaMheease-is-lmmed4led-and-iw&Jll-fecGe-andeffoct,orIt inMIforteandaffectas modified,andotating-the

349 modificationc; (b)theamountofthe rentandthedatatowhichrenthas beenpaid;Cc)theamountofeny:ccudty 350 dees4-he1d-hyeflean 4)-that-neitherpartyicIndefauftundorthosate orifa defauIt-by-e1thec-pa4y1s-e4aimed 351 atatieg4honatureofanyouchclaimeddefault.If Sellerhz notobtainedTenantEstoppelcfromaltThnantcofthe 352 Property,thenSaNersha4eeeute-and-4elWec-te-&iye-a-enant4steppel-vilh-espeet4e-any-sue14ease-sett4n 353 fo#li—the—Wematie,wequi44y thc Section21.1andconfirmingthoaccuracythereof. Thereare no Leases 354 affectingthesubjectproperty. 355 356 357 211.2 if-applicable,theascigimentoftheLeaco) bySeller,:r.dassumptien-ef4he-bease(s)-by 358 Buyer shallbe accomplishedbyexocunganddeliveringtoeachothorthroughEscrowen.ccignrncntofLesco?o 359 lnemct underLease 360 361 21.2 PersonalProperty.lf-applieab1erSellershallconveyallPersonalPropertyto Buyerby 362 executinganddeliveringto Buyerat ClosingthroughEscrow(asdefinedbelow),Bill a ofSalesubstantiallyinthe 363 form ofExhibitC attachedhereto(the“Billof Sale”).Allfurniturelocatedon the RealEstatein—the-pcemi5es 364 shallbeincludedinthesale. Buyercaninventorythefurnitureat theirelection. 365 21.3 366 367 22—Rccidcnthl Lead Based—PaintDicclocure. IF 368 HOUSINGBUILTPRIORTO 197 BUYERANDSELLERMUSTCOMPLETETHELED BASEDR1NT 369 DISCLOSUREADDE-NOUM-AGHEO-HEREO-AS-SXNIBIT-O7 370 371 23. Addenda; Exhibits The followingnamed addenda andexhibitsare attachedto thisAgreementand 372 incorporatedwithinthisAgreement: 373 [] ExhibitA— LegalDescriptionofProperty[REQUIRED] 374 0 —E*h3b4-B-—As&gnmer%ef-kesses1ntecest-umJer4ease-(-app1leable) 375 ExhibitC — BillofSaleifappIicab1eftebeutualy-agffie4-upan 376 0 ExhibftD Lcad-al#Giselesuce-M4eedim-(#-app1isabIe) 377 ExhibitE — ASISExceptions(ifapplicable) 378 379 380 21. Time forAcceptance.IfBuyerduet no returntoSoNoracignadonddatedvorcbnofthisAgroomont 381 en-ec-before 5:00PMPacificlime onThucs4ay3une43that4:OOPM,thentheEamectMoneychallb: pmpUy 382 rnded4o-Buyer and thereafter, neither pa%-shaWhavo any t4heFdØ.cc.oNlgatienMemufidef, 383 3s4 25. OFACCertification.TheFederalGovernment!ExecutiveOrder13224,requiresthatbusinesspersons 385 oftheUnitedStatesnotdo businesswithanyindividualor entityon a listofSpeciallyDesignatednationalsand 386 BlockedPersons”- that is, individualsand entitiesidentifiedas terroristsor othertypesof criminals.Buyer 387 hereinaftercertifiesthai: 388 389 25.1 Itis notacting,directlyorindirectly,fororonbehalfofany person,group,entity,ornation 390 namedby anyExecutive Orderor TheUnitedStatesTreasuryDepartmentas a terrorist,speciallydesignated 391 nationaland/orblockedperson,entity,nation!ortransactionpursuanttoanylaw!order,rule,orregulationthatis 392 enforcedoradministeredbytheOffice ofForeignAssetsControl;and 393

OO45955:I) 01997 ComecaIMscdaIn ofBrokeisOREGONISWWASHINGTON(Rev.02/Il) PuRCHAsEANDSALEAGREEMENTANDRECEIPTFOREARNESTMONEY(OREGON)

I RGNTSPPSRVFfl 394 25.2 Ithas notexecutedthisAgreement,direcflyorindirectlyon behalfof,or insbgatingor 395 facilitatingthisAgreement,directiyorindiredtiyonbehalfof,anysuch person,group,entity,ornation. 396 397 Tothe extentpermittedby and subjectto the limitationsof the OregonConstitutionand the OregonTort 398 ClaImsAct,andsubjectto ORSChapter180,Buyerherebyagreestodefend,indemnify,andholdharmlessSeller 399 fromandagainstany andallclaims,damages,losses,risks,liabilities,andexperses(ine4diagallomey!s_fees_and 400 eests)-arisingfromorrelatedtoanybreachoftheforegongcertification.ThiscertificationbyBuyerandagreement 401 toindemnify,holdha2iess, anddefen IcrshallsurviveClosingoranyterminationofthisAgreement. 402 r &‘ILcfrtfl) oL..l.Iq 403 ‘CBiiyer signLre; _Va(e: 404 405 CONSULTYOURAHORNEY.THISDOCUMENTHASBEENPREPAREDFORSUBMISSIONTO YOUR ‘106 AHORNEYFOR REVIEWAND APPROVALPRIORTO SIGNING. NO REPRESENTATIONOR 407 RECOMMENDATIONIS MADEBY THE COMMERCIALASSOCIATIONOF BROKERSOREGONISW 408 WASHINGTONORBYTHEREALESTATEAGENTSINVOLVEDWITHTHISDOCUMENTASTO THELEGAL 409 SUFFICIENCYORTAXCONSEQUENCESOFTHISDOCUMENT. 410 411 THISFORMSHOULDNOTBE MODIFIEDWITHOUTSHOWINGSUCHMODIFICATIONSBYREDLINING, 412 INSERTIONMARKS,ORADDENDA. 413 4)4 BuyerSA cC Drqv 415 • ) 4)6 ‘sbz-/12rU/p-c)/ ‘1&f*st_- 417 Name:5annon 4)8 ]Ue:Mrnjnk\,akw. tMLo- Sctcs 419 Date: Disi. IR 420 421 SellerAcceptance.ByexecutionofthisAgreement,SeI!eragreestosellthePropertyonthetermsandconditionsin 422 thisAgreement.// 423 424 SellerI NoflhWilsonvilleAssociates 425 /j 426 By:/jfr - 427 Name:JaclMartin 428 Title &A&Ii / iLtY2 429 Date: 1JU 430

43 I

(tcV5955.1) 01997commeid&Msadarn oI 8rokrs OREGONISWWASHINGTONtRev02111) pRHA5E ANDSALEAGREEMENTANDREcEIPTFOREARNESTMONEY(OREGON) ALLRIGHTSRESERVED 432 CRITICAL DATELIST: 433 434 The last party to execute [his Agreement shall complete the information below (the ‘CrWcalDate Lisf’),initialwhere 435 indicated, and return a copy of the same to the other party for such party’s review. This Critical Date List is for 436 reference purposes only and, in the event of a conflict between this CriticalDate Listand the Agreement, the terms 437 ol the Agreement shall prevail. 438 DATE: •__Execution_Date_(Introductory_paragraph): .__Earnest_Money due_date_(Section_1.2.1(a)): . Seller shall open Escrow with the Escrow Holder (Section Before 1.2.1(a)): a Seller shall deliver Seller’s documents to Buyer (Section 4): ‘Aqthin— days after the Eyecution Date a Seller shall deliver Preliminary Report to Buyer (Section 5): Within — days after the Execution Dale a Buyer’s titleobjection notice due to Seller (Section 5): Within — days after receipt of lhe Preliminary Report . Seler’s lute response due to Buyer (Section 5): Within — days after receipt of Buyer’s title objection notice a TWeContingency Date (Section 5): Within— days after receipt of Seller’s title response • Expiration date for satisfaction of General Conditions (Sectioi Within — days of the Execution Date 21): • Expiration date for sabsiaclion of Financing Condition (Section Within— days of the Execution Date 2.1): a By this date, Buyer must deliver the notice to proceed Within — days of the Execution Date contemplated_in_Section_2.2. • Closing Date (Section 7.1): , /1 439 Initialsof Initialsof Sellert-44, 440 InitialsofBuyer.— Initals of Seller:

(00045955:1) V1997ConvnerdaIAssxIaonorBrokenOREGON/SWWASHINGTON(Rev.02/Il) PURCHASEANDSALEAGREEMENTANDRECEIPT FOREARNESTMONEYIOREGON) All RICTRFSRVFfl ______

I EXHIBITC 2 BILLOFSALE

3 4 5 — a — (S&tefl, forgood and valuableconsideration,the receiptand sufficiencyof whichare hereby 6 acknowledged,does hereby bargain,transfer,conveyand deliverto a — yç’), its successors and/cr 7 assigns: 8 9 Allof the personal property,Including all furniture(collectively,?ersonal Property1)locatedin or on, or 10 used In connection withthe operation of, therealpropertylocatedat_in the Cityof_, Countyof ii State of _, whichPersonalPropertyis moreparticularlydescribedon Schedule1 attached heretoand 12 incorporatedhereinbyreference. ‘3 14 Seller hereby covenants with Buyer that said Personal Property is free and clear of and from all 15 encumbrances1securityinterests,liens,mortgagesandclaimswhatsoeverand that Selleris the ownerofand has 16 the rightto sellsame. -SeIler1eo-b&i&fcHtseWand-its-euccessofs-does-hecety-waffaat-and-agcse-te-dekr44he I? P6OOQflft jq,i’ Jow a&tq

20 IT IS UNDERSTOODANDAGREEDTHATBUYERHAS EXAMINEDTHE PERSONALPROPERTY

2I HEREINSOLDANDTHATTHISSALEIS MADE.4SIS,WHERE1S ANDSELLERDISCLAIMSANYEXPRESS 22 OR IMPLIEDWARRANTYOTHERTHANTHE WARRANTYOF TITLESET FORTHABOVE,AS TO THE 23 aaPERSONAL PROPERTY INCLUDINGWITHOUT LIMITATIONTHE IMPLIED WARRANTIESOF 24 MERCHANTABILITYORFITNESSFORAPARTICULARPURPOSE. 25 and Selleragree thatthisBillof Saleshallbe effectiveuponthedeliverythereofbySellerto Buyer. 26 Buyer /4 27 28 INWITNESSWHEREOF,the partieshavecaused thisBillof Sale to be executedthis day 29 of 30 31 SELLER1 / 32 BU

or A-tj c€*u FE \JAtu £1?’I oF r&fE-ccAtc oF flf& REM

IT (00045?55:I) C1997CamwaI Aswcia ofBrokenOREGON/SWWASHNGTON(Rev.02i1I) puRcSE ANDSALEAGREEMENTANDRECEiPTFOREARNESTF.tDNEY(OREGON) ALLRIGHTSRESERVED ()Lø Ig 19 I EXHIBITE 2 ASISEXCEPTIONS

4 1, Sellers Work. Pursuant to Section 2.1 of the Agreement, Sellerwillinstall, priorto Closing, a non- 5 telescoping, single-stage hydraulic 2100 lb. elevator WI machine room, in accordance with Seismic

6 Installation Guideline Reference : ASMEA17.7I CSA B44.7,and with all necessary inspections made and 7 approved and alloperational permits Issued.

8 9 2. Additional Seller Representations, Warranties and Covenants. Seller represents, warrants, and 10 covenants to Buyeras follows: II 12 (a) Seller Is not bound by any lease of any portion of, or service contract relating to, the Real Estate 13 that is not terminable at Closing. 14 IS (b) To the best of Seller’s knowledge,there is no pending or threatened litigation or administrative 16 action withrespect to the Property. 17 IS (c) To the best of Seller’s knowledge, there is no pending or contemplated eminent domain, 19 condemnation, or other governmental taking of the Real Estate or any portionthereof. 20 21 (ci) To the best of Seller’s knowledge, there are no special or general assessments, which are in 22 addition to those which will be disclosed in the Preliminary Report, that have been levied against or are 23 proposed for the Property. 24 25 (e) To the best of Seller’s knowledge, there are no unperformed obligations that are currently due 26 relativeto the Property to any governmental or quasi.governmental body or authority. 27 28 29 30 (f) To the best of Seller’s knowledge, Seller has not caused any hazardous substance, waste, or 31 materialto beused, generated stored, or disposed of on ortransported to or fromthe Real Estate thereon in 32 violatIonof anyapplicable law prior to or during the period in which Seller has owned the Real Estate. For 33 the purposes of this Section 2(g), “hazardous substance, waste, or material” means all petroleum-based 34 products, radon, asbestos, PCBs, and all substances, wastes, and materials that are so defined in the 35 ComprehensIve Environmental Response, Compensation, and Liability Act of 1980, the Resource 36 Conservationand RecoveryAct of1976,and the Hazardous MaterialsTransportation Act. 37 38 (g) Seller’s execution, delivery of, and performance under this Agreement are undertaken pursuant to 39 authority validlyand duly conferred on Seller and the signatories hereto. 40 41 (h) This Agreement and the consummation of the transaction evidenced by this Agreement do not 42 violate anyother agreement to which Seller Is a party.

\JVPt ZOVI

REGIONAL DESCRIPTION

LOCATION Portland is situated along the banks of the Willamette River near its confluence with the Columbia River, 110 water miles from the Pacific Ocean. In 1983, the federal government designated greater Portland as a Primary Metropolitan Statistical Area (PMSA), consisting of Multnomah, Washington, Clackamas, and Yamhill counties. In 1994, Columbia (Oregon) and Clark (Washington) Counties were added and in January 2005, the Office of Management and Budget (OMB) included Skamania County, Washington, as part of the Portland-Vancouver-Beaverton OR-WA Metropolitan Statistical Area. The Portland- Vancouver MSA is the largest economic and population center on the West Coast between San Francisco (650 miles south) and Seattle (180 miles north).

CLIMATE Portland has warm and dry summers, with an average high in August of 80.3 degrees and an average low of 56.9 degrees. The winters are usually long and wet; Portland typically gets about 33.6 inches of rain each year, the majority of which is in the winter months. Snow rarely falls, with an average of 2.1 inches a year. The average high in January is 45.4 degrees with a low of 33.7 degrees.

POPULATION The Portland MSA is the 23rd largest metropolitan area in the country. The 2018 population figures as presented by Portland State University Population Research Center reflect an

REGIONAL POWELL BANZ VALUATION, LLC © 2019 EXHIBIT PORTLAND REGIONAL DESCRIPTION (continued) average annual increase from 2012 to 2018 of 1.65%. Population growth decreased slightly, to 1.53% in the most recent period, 2017-2018. The following chart summarizes population growth trends for the Portland MSA and Oregon from 2012 to 2018.

POPULATION Average 2012 2013 2014 2015 2016 2017 2018 Annual % Annual % Chg Chg 2012-18 2017-18 MULTNOMAH 748,445 756,530 765,775 777,490 790,670 803,000 813,300 1.44% 1.28% WASHINGTON 542,845 550,990 560,465 570,510 583,595 595,860 606,280 1.95% 1.75% CLACKAMAS 381,680 386,080 391,525 397,385 404,980 413,000 419,425 1.65% 1.56% CLARK (WA) 431,250 435,500 442,800 451,820 461,010 471,000 479,500 1.86% 1.80% YAMHILL 100,550 101,400 102,525 103,630 104,990 106,300 107,415 1.14% 1.05% COLUMBIA 49,286 49,850 50,075 50,390 50,795 51,345 51,900 0.88% 1.08% SKAMANIA (WA) 11,275 11,300 11,370 11,430 11,500 11,690 11,890 0.91% 1.71% PORTLAND MSA 2,265,331 2,291,650 2,324,535 2,362,655 2,407,540 2,452,195 2,489,710 1.65% 1.53% STATE OF OREGON 3,883,785 3,919,020 3,970,239 4,013,845 4,076,350 4,141,100 4,195,300 1.34% 1.31% Source: Center for Population Reseach and Census, Portland State Univ ersity State of Washington: Office of Financial Management Portland is a city of 648,740 people (Source: PSU Population Research Center estimate as of July 1, 2018), with a total supporting metropolitan population of over 2.4 million located in the northwestern part of the State of Oregon. SE Portland has the highest population of residents, followed by East Portland. Central NE has the least of any neighborhood area. Roughly 80% of Portland residents live east of the Willamette River.

EMPLOYMENT The Portland metropolitan area is home to more than 75,000 businesses. Of these, nearly 1,500 are classified as headquarter firms. A number of major manufacturing companies maintain their headquarters in the Portland area, including the Fortune 500 firms of Nike and Lithia Motors. The technology industry has a strong presence in Portland. Along with Tektronix and Intel, Portland is home to many smaller worldwide technology companies, including Xerox, Novellus and Infocus. The rapid growth of the semiconductor industry over the past 20 years, particularly in the Portland MSA, has earned it the nickname “Silicon Forest” in reference to Intel and many smaller printed circuit board (PCB) and processor (chip) manufacturers. The Portland metro area continues to attract transients from around the country. Many of these in-migrants arrive without a job, increasing the unemployment rate. Fortunately, those relocating to Portland tend to have a high education level and are employable, allowing them to find jobs. Portland’s brain gain has not gone unnoticed, as the area was ranked 11th on The Daily Beast’s 2009 smartest cities list, out of the 55 largest U.S. Cities. National, state, and regional employment hovered around 5% until the residential market collapse and subsequent “Great Recession”, which doubled unemployment rates in the Portland MSA, state of Oregon, and the nation. Unemployment began a steady downward trend beginning in mid-2009 and, since 2016, has reached below pre- recessionary levels. December 2018 unemployment in the Portland MSA was 4.1%.

Unemployment data relevant to the Portland MSA is presented below.

ECONOMY The Portland metropolitan area has a diversified economy that reflects national business conditions. A diversified industrial base within the Portland MSA provides a stable economic base, lessening the effects of business cycles, which often appear in a state economy which is heavily invested in the computer and manufacturing industries. Oregon’s state budget will continue to present a significant obstacle as the state struggles to address its looming budget shortfall and tax burdens adjust to meet fiscal challenges. Although there is significant discourse in the media and business community regarding the view that the business tax climate is harsh in Oregon, the National Tax Foundation released its annual State Business Tax Climate Index for 2019 and found Oregon to be the 7th best state with regard to its business tax climate. In addition, Forbes Magazine’s annual “The Best Places For Business and Careers” rankings found Oregon to be the 1st best ranking in 2017 and the 3rd best in 2018. These indices give cause for an optimistic view of the area’s economic potential in comparison to the national average.

HOUSEHOLD INCOME According to the U.S. Census Bureau, the median household income for the Portland MSA was $71,931 in 2017 (most recent available), higher than the Oregon median household income of $60,123 over the same time period. The median household income for the United States was $60,336 per household over the same time period.

PORTLAND-VANCOUVER MSA MEDIAN HOUSEHOLD INCOME PERCENT CHANGE COUNTY 2010 2012 2014 2015 2016 2017 2010-17 2016-17 CLACKAMAS $ 65,818 $ 60,791 65,555$ 69,523$ 74,460$ 79,404$ 20.6% 6.6% CLARK (WA.) $ 60,610 $ 54,016 61,747$ 64,282$ 68,937$ 74,243$ 22.5% 7.7% COLUMBIA $ 57,718 $ 51,381 57,517$ 52,060$ 63,055$ 61,453$ 6.5% -2.5% MULTNOMAH $ 54,391 $ 51,118 53,519$ 58,764$ 62,292$ 63,587$ 16.9% 2.1% SKAMANIA (WA.) $ 46,783 $ 44,586 52,673$ 53,733$ 55,802$ 59,639$ 27.5% 6.9% WASHINGTON $ 64,838 $ 61,499 66,315$ 70,417$ 75,577$ 80,845$ 24.7% 7.0% YAMHILL $ 54,183 $ 50,336 52,903$ 52,806$ 60,643$ 62,759$ 15.8% 3.5% PORTLAND MSA$ 53,078 $ 56,978 60,248$ 63,850$ 68,676$ 71,931$ 35.5% 4.7% OREGON $ 51,871 $ 49,161 51,088$ 54,074$ 57,379$ 60,123$ 15.9% 4.8% UNITED STATES $ 53,746 $ 51,371 53,657$ 55,775$ 57,617$ 60,336$ 12.3% 4.7% Source: U.S. Department of Commerce, Bureau of the Census Between 2016 and 2017, the Portland MSA’s median household income increased by 4.7%, similar to the state of Oregon (4.8%) and United States (4.7%). However, the median household income for the Portland MSA is over $10,000 more than both Oregon and the United States, suggesting a stronger local economy than is found regionally and across the nation. Within the region, the lowest incomes are predominantly located in the central areas of Portland (Multnomah County), where the older housing stock exists. This pattern holds true in the smaller suburban cities in the metropolitan area as well. Higher income households are concentrated in suburban locations, with the exception of the affluent, centrally located neighborhoods including the West Hills, Eastmoreland, Laurelhurst, Grant Park, Alameda, and Mt. Tabor in Portland. The largest proportion of upper income households is located west of the Willamette River, in areas with view properties.

LOCAL GOVERNMENT A regional agency, the Metropolitan Service District (METRO), takes responsibility within urbanized areas for review of city and county comprehensive growth plans, solid waste management, and transportation planning. METRO manages regional parks and green spaces, and the Metro Washington Park Zoo. It also oversees operation of the Oregon Convention Center, Civic Stadium, the Portland Center for Performing Arts, and the Expo Center. METRO is governed by an executive officer elected region-wide, a seven- member council elected by districts, and an auditor who is elected region-wide. Local governments can augment revenues with bonded indebtedness. Oregon does not have a sales tax, but has an income tax. Although a sales tax has been considered as a probable source of new revenue, sales tax initiatives have historically been soundly defeated by voters.

PROPERTY TAXES In November 1996, Oregon voters approved a property tax limitation measure (Measure 47) which went into effect during the 1997/98 tax year. Under the provisions of this measure, property taxes at July 1, 1997 will be reduced to the smaller of the 1994/95 tax, or the 1995/96 tax less ten percent. Tax increases for subsequent years are limited to three percent per year, with exceptions for new construction, major remodeling, annexations and rezoning. On May 21, 1997, voters approved a re-write of Measure 47 in the form of Measure 50. This revision effectively rolls back assessed values and tax levies freezing tax rates to 1995/96 levels. In addition, appreciation is capped at three percent per year. Ramifications of this revision are yet to be interpreted by county assessors.

COMMUNITY FACILITIES The Portland metropolitan area maintains a symphony orchestra, junior symphony, opera company, art museum, museum of science and industry, public zoo, and an extensive public library system with 18 branches. The Portland Center for the Performing Arts includes the 3,000-seat Keller Auditorium, the 2,776-seat Arlene Schnitzer Concert Hall, the 322-seat Winningstad Theatre, and the 922-seat Newmark Theatre. Also located in Portland are the Japanese Gardens, Western Forestry Center, and the International Rose Test Gardens. The city of Portland has the most parkland per capita in the country, which includes the 5,000-acre Forest Park. The Oregon Convention Center (400,000 SF) was completed in September 1990, and expanded during 2002 (507,500 SF). The expanded center’s total capacity of 907,500 square feet makes it the largest facility of its type in the Pacific Northwest. As of March 2019, the Oregon Convention Center is currently under renovation, with upgrades to public spaces and ballrooms, as well as the reconstruction of exterior plaza on the northeast corner. According to the Oregon Convention Center’s website, current renovations are expected to be completed by October 2019. The center attracts national, regional, and local events.

The area is well served by public and parochial schools. Institutions of higher education include Portland State University, University of Portland, Lewis & Clark College and Law School, Reed College, and Oregon Health & Science University. There are three large junior colleges and many community education centers. Oregon Museum of Science and Industry (OMSI) is a $40 million facility on the east bank of the Willamette River in downtown Portland. OMSI is a major educational facility and tourist attraction. The Portland metropolitan area includes a number of professional sports teams and arenas. The Hillsboro Hops, a single-A baseball team affiliated with the Arizona Diamondbacks, play in Hillsboro’s Ron Tonkin Field (built in 2013 and previously known as Hillsboro Ballpark). Portland is also home to the Portland Timbers (Major League Soccer) and Portland Thorns (National Women’s Soccer League). Both the Timbers and Thorns play in Providence Park (renovated in 2010), which seats approximately 19,000 people. A $70 million-plus expansion project began in 2017 to add 4,000 seats to Providence Park. The project is scheduled to finish construction in 2019. The Veterans Memorial Coliseum is a 12,000-seat structure that currently hosts the Portland Winter Hawks (Western Hockey League), and other major entertainment attractions. The 20,000-seat Moda Center is the home of the Portland Trailblazers (NBA). This multi-event entertainment complex is located adjacent to Memorial Coliseum and has established a national reputation for excellence. The majority of the funding for this project was derived from private investors and the team owner, Paul Allen. This sports arena has generated significant new economic activity and has created hundreds of new full and part-time jobs.

NEW DEVELOPMENT Notable recent development projects within the Portland MSA include but are not limited to: Knight Cancer Institute: The second phase of construction for the Knight Cancer Institute research building broke ground in July 2016. The facility was completed in 2018 and is a seven-floor, 320,000 SF building that houses scientists and physicians working together on the early detection of cancer. The Oregon State Legislature passed a bill in 2014 to fund a $200 million request to fund the project. Center for Health & Healing South and Rood Family Pavilion: The Center for Health & Healing Building 2 broke ground in April 2016. According to OHSU’s website, “this new health care Facility will offer complex surgery and interventional procedures, clinical space for the Knight Cancer Institute — to include cancer clinics, infusion services and areas for clinical trials — and clinical space for the Digestive Health Center and Preoperative Medicine Clinic. A retail pharmacy, lab services, food options, waiting areas and outdoor terraces are also Source: ZGF.com planned.” According to the Oregonian newspaper, the building will total approximately 770,000 SF with an estimated cost of $400 million. Adjacent to the Center for Health & Healing South building will be the Rood Family Pavilion which will include a parking garage and 76 rooms for patients receiving outpatient treatment at OHSU. Completion of both buildings is anticipated in 2019.

Vancouver Waterfront: A development similar to Portland’s Pearl District is currently underway along the Vancouver Waterfront. Ground has been broken on 32 acres of waterfront land along the Columbia River. According to The Oregonian, 21 city blocks have been slated for development with plans for 3,300 new residential units, more than

1.25 million SF of office space, a luxury Source: Gramor Development hotel, and retail space. Luke Hammill, writer for The Oregonian, writes that “The total investment is estimated to reach $1.5 billion, the biggest development project in the city’s history.” Oregon Convention Center Hotel: Construction commenced on August 4, 2017 for the Hyatt Regency Portland at the Oregon Convention Center, a $224 million, 600-room hotel in Portland’s Rose Quarter. Construction is scheduled for completion by December 2019, with an anticipated full opening in February 2020. Source: Oregon Convention Center Field Office: Development is currently underway along Northwest Front Avenue in Northwest Portland of Field Office, two six- story buildings that will offer 300,000 SF of office space. The $100 million project is being built in an effort to revitalize the surrounding area which developers currently refer to as the “Front Side District”.

REGIONAL HIGHLIGHTS The Portland–Beaverton–Vancouver MSA consists of many smaller cities in a seven county region. Washington County, in the southwest Portland area, incorporates 11 cities, including Hillsboro, Tigard, Tualatin, Sherwood and Beaverton. Washington County utilizes a nationally recognized urban growth boundary to continue its practice of focused industrial and commercial growth. The county’s developed regions are home to traditional suburban and new mixed-use neighborhoods, electronics leaders such as Intel, IBM and Tektronix, and world headquarters for both Nike and Columbia Sportswear. Hillsboro, home to Intel and other high-tech leaders, used to rely primarily on the stable forestry and timber products industries as an employment base. However, the high-tech boom has attracted many service industries to support the growing manufacturing companies. With a 2018 population of 101,920 Hillsboro is the fifth largest city in Oregon, behind Portland, Eugene, Salem, and Gresham. The median household income of Hillsboro was $75,599 (Source: US Census Bureau, American Community Survey 2013-2017 5-year Estimate). Clackamas County in the southeast Portland area incorporates 17 cities including part of Portland, Lake Oswego, Tualatin, and Wilsonville. Clackamas County is known for manufacturing, distribution, and processing facilities. A large portion of the county is rural

REGIONAL POWELL BANZ VALUATION, LLC © 2019 EXHIBIT PORTLAND REGIONAL DESCRIPTION (continued) making timber, wood products, nurseries and greenhouses, and agriculture prominent components of the Clackamas County economic landscape. Tigard, located 15 minutes from downtown Portland, is also within the Portland Urban Growth Boundary. It is a growing suburban commuter community. Tigard’s population was approximately 52,785 in 2018, with a median household income of $70,120 (Source: US Census Bureau, American Community Survey 2013-2017 5-year Estimate). Tualatin is located 12 miles south of Portland on the Tualatin River. It had a 2018 population of 27,055 and had a median household income of $72,580 as of 2013-2017 Census data. While Tualatin is home to roughly 160 manufacturing companies, several of the largest employers in the city include: Legacy Meridian Hospital, UPS, GE Security, and Novellus Systems. Bridgeport Village, a newer commercial and entertainment lifestyle center, is located several miles to the north, between Tigard and Tualatin. Oregon City is located 13 miles southwest of Portland along Interstate 205 in Clackamas County. The 2018 population was estimated at 34,860 with an average median household income of $68,813, as per 2013-2017 Census data.

MARKET TRENDS Industrial/Flex Market – CoStar Analytics was researched for Industrial/Flex properties in the Portland Metropolitan Statistical Area (MSA). The following tables summarize the surveyed results:

The Portland Metro area’s industrial/flex property market has reached a full recovery from the Great Recession. Vacancy is currently 3.8%. According to CoStar, 4,213,071 SF of industrial and flex property was absorbed in the last 12 months. The current rental rate is $9.26 per SF, above the five-year average of $6.97 per SF. Expectations of continued demand for industrial and flex properties in the Portland market have fueled new development projects. CoStar reports there has been 5,157,756 SF of new space delivered in the past 12 months with an additional 2,325,536 SF currently under construction. Office Market – CoStar Analytics was researched for Office properties in the Portland Metropolitan Statistical Area (MSA). The following tables summarize the surveyed results:

The Portland office market has seen consistent improvement in recent years. According to CoStar, vacancy is currently 7.5%, near the five-year average of 7.6%. Portland average office rental rates have continued to increase. Current gross rent per SF is $26.60 per SF. Expectations of continued demand for office properties in the Portland market have fueled new development projects. CoStar reports that there has been 2,164,281 SF of new space delivered in the past 12 months with an additional 2,668,224 SF currently under construction. Retail Market – CoStar Analytics was researched for Retail properties in the Portland Metropolitan Statistical Area (MSA). The following tables summarize the surveyed results:

Portland has had a recent history of growth; between 2008 and 2013, it had the fastest growing GDP of any major metro in the US, enjoying healthy rent rolls and tenant expansion despite a high unemployment rate. Recently, that pattern of economic growth and development has continued; the Portland MSA population grew by about 80,000 people between 2016 and 2018. This population and economic expansion helped Portland’s retail market to recover from the Great Recession. According to CoStar, vacancy is currently 3.0%, below the five-year average of 4.1%. Portland average retail rental rates have continued to increase. Current NNN rent is $19.17 per SF. Expectations of continued demand for retail properties in the Portland market have fueled new development projects. CoStar reports that there has been 452,597 SF of new space delivered in the past 12 months with an additional 302,004 SF currently under construction.

Multi-family Market – CoStar Analytics was researched for Multi-Family properties in the Portland Metropolitan Statistical Area (MSA). The following tables summarize the surveyed results:

Portland apartment rents have increased year over year, as the improving economy and in-migration have helped fuel strong multi-family market demand. Other factors influencing apartment demand include the influx of millennials, many of whom prefer the flexibility of renting, and baby boomers, who often downsize upon reaching retirement. CoStar reports current vacancy is 5.0%.

In terms of construction, new multifamily developments continue to rise throughout the area. 11,618 units are currently under construction with 7,502 units delivered in the past 12 months. In 2017, the proposed rent control legislation exacerbated rent growth that year as property owners and managers took preemptive measures to raise rents in an effort to push the market prior to the institution of rent caps. That legislation ultimately faltered; however, on February 28, 2019, Governor Kate Brown signed into law statewide rent control via Senate Bill 608. The new legislation limits rent increases to 7% (plus inflation), annually. It will also prohibit no-cause evictions following the first year of occupancy. The House of Representatives passed the bill by a vote of 35 to 25. Oregon is the first state in the nation to mandate statewide rent control. New construction will benefit from an exemption for the first 15 years.

SUMMARY After the Great Recession, unemployment rates continued to drop, dipping to a low of 3.6% in the Portland Metro Area in January 2018, (according to information released by the Oregon Employment Department). Unemployment has since risen to 4.1% as of December 2018. With many indicators at pre-recession levels, and noting that some of the more dramatic growth seen over the past few years is beginning to slow, the economy appears to be nearing stabilization. The Portland MSA is leading the state in growth, with increased demand for commercial services, particularly in the more urban built up areas.

APPRAISER QUALIFICATIONS

The firm concentrates on complex commercial, industrial and multi-family valuation assignments for government, corporations and individuals. Work has been performed on a national scale. This is a sample of clients served:

Financial: Federal Home Loan Bank AKT, LLP Klamath County Bank of America Lane County Bank of the Pacific Marion County Bank of the West Military Dept. - State of Oregon Banner Bank Mount Angel School District Church Extension Plan Oregon Attorneys General Citizens Bank Oregon Dept. of Parks & Recreation CitiGroup Oregon Dept. of Transportation CIT Small Business Lending Oregon Division of State Lands Continental Bank Oregon Dept. of General Services Evangelical Christian Credit Union Polk CDC First Bank Port of Portland First Community Credit Union Riverdale School District First Federal, McMinnville Salem/Keizer School District First Interstate Bank, N.A. U.S. Army Corps of Engineers HomeStreet Bank U.S. Bureau of Land Management JPMorgan Chase Bank, NA U.S. Dept. of Interior Northwest Community Credit Union U.S. Marshall's Office OnPoint Community Credit Union U.S. Forest Service Oregon Coast Bank Washington Dept. of Fish & Wildlife OSU Federal Credit Union Woodburn School District Pioneer Trust Bank, N.A. Yamhill County Housing Authority Regents Bank Riverview Community Bank Insurance/Medical: Siuslaw Bank Corvallis Clinic Umpqua Bank Good Samaritan Hospital (Corvallis) Washington Federal SAIF Wells Fargo Bank Salem Health Willamette Community Bank Samaritan Albany General Hospital Willamette Valley Bank Samaritan Health Services St. Paul Fire & Marine Governmental: Benton County General: Bonneville Power Administration Arnold, Gallagher, PC City of Albany Catholic Community Services City of Coos Bay Martinis & Hill City of Corvallis McDonalds Corporation City of Eugene Roth’s Fresh Market City of Lincoln City MDH Management LLC City of Newport Saalfeld Griggs PC City of Salem Feibleman & Case, PC City of Silverton First American Title City of Sweet Home Morrow Equipment City of Woodburn Sherman, Sherman, Johnnie & Hoyt Dallas School District Mtn. West Development Corp. Douglas County State Farm Insurance Co. FDIC GHR Lawyers

FIRM RESUME | POWELL BANZ VALUATION, LLC © 2019 John C. A. Gillem is a Certified General Appraiser with Powell Banz Valuation, LLC. He graduated from Pacific University in 2012 with a Bachelor of Arts in Business Administration-Accounting. He has been employed with PBV since August of 2012. John has assisted in a variety of commercial valuation assignments throughout Oregon, including retail, industrial, and vacant land. His main focus is industrial appraisal work.

John became a Certified General Appraiser in April 2019 and will be continuing his education of the appraisal discipline in the months and years to come.

EXPERTISE & SERVICES

 Real Estate Valuation o Industrial o Flex o Net Leased Restaurants [email protected] o Vacant Land 503-371-2403  Market Analysis & Feasibility Studies

AFFILIATIONS EDUCATION • State of Oregon Certified General  B.A. – Pacific University Appraiser #C001372 • Appraisal Institute: Practicing Affiliate

POWELL BANZ VALUATION, LLC © 2019 Jonathan B. Banz, MAI is a Principal of the firm and Certified General Appraiser. He appraises a large variety of property types, both locally and regionally. He focuses on industrial properties, including single and multi-tenant, light, heavy, and flex. Jon began his appraisal career in 2002 with Powell Valuation Inc. After completing the required coursework, comprehensive exam, and traditional demonstration report in 2012, he earned his MAI designation from the Appraisal Institute.

In January 2014, Jon and his wife/business partner, Katherine Powell Banz, MAI (Katie), purchased the business. Both are Principals in the newly formed firm of Powell Banz Valuation, LLC, and look to continue the family business tradition, which has spanned the past 45 years. In his spare time, Jon enjoys spending time with his wife and their Great Danes, working on the [email protected] continual renovation of the couple’s 1910 farm 503-371-2403 house located in Salem’s Fairmount neighborhood, and listening to as much new (and old) music as time allows.

EXPERTISE & SERVICES AFFILIATIONS

• State of Oregon Certified General  Real Estate Valuation Appraiser, #C000898 o Industrial o Professional & Medical Office • State of Washington Certified o Retail General Appraiser (#1101855)

o Subdivision Analysis • Designated Member of the o Multi-Family Appraisal Institute (#481000) o Lodging o Special Purpose Properties • State of Oregon Supervising o Yellow Book Appraiser

 Expert Witness Testimony • Greater Oregon Chapter of  Eminent Domain and Condemnation the Appraisal Institute -  Market Analysis & Feasibility Studies GOCAI:  Appraisal Review o 2018 Region 1 Representative

o 2015 Public Relations EDUCATION Committee Chairman

 MAI - Appraisal Institute

 B.S. - Linfield College

APPRAISER CERTIFICATIONS

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