Redmond

QUEEN ANNE BP 60 CAP RATE CAP RATE 4.4% 3.8% %

17.5 Turn to

PAGE 13

Learn about your INTERNATIONAL ’s value $360 $306 Apartment Market Study Market Apartment Seattle Bellevue AVG PRICE PER SF PER PRICE AVG AVG PRICE PER SF PER PRICE AVG KIRKLAND % 2016 2016 28.6 AVG PRICE PER UNIT PER PRICE AVG $265,233 2015 2014 An Analysis of the 5 Unit to 50 Unit Urban Apartment Market the 5 Unit An Analysis of SEATTLE NEIGHBORHOOD APARTMENT STUDY APARTMENT NEIGHBORHOOD SEATTLE 2016 WN downtown

Daryl Burton

Fremont

Greenlake Wallingƒord BELLT Matt Laird Matt Jerrid Anderson Jerrid SEATTLE MULTIFAMILY TEAM MULTIFAMILY SEATTLE SEATTLE WEST Dylan Simon “The market does not trade upon what everybody knows, but upon what those with the best information can foresee.”

-­­William Hamilton

Cover neighborhood logos designed by DEI Creative: www.deicreative.com 2016 Seattle Neighborhood Apartment Market Study

Who We Are

Colliers’ Seattle Multifamily Team is a team of dedicated, expert commercial real estate brokers working for apartment owners, developers and investors.

Our goal is to help you maximize your return on investment, whether that is selling your apartment building faster and for more money or ensuring your purchase is a sound investment; we believe in building a long-term relationship, not just brokering a transaction.

Our 2016 Seattle Neighborhood Apartment Market Study is a prime example of our approach to advising our clients. By giving our clients a better understanding of current and future market dynamics we believe our clients are empowered to make better decisions and achieve higher returns. This is Brokerage Evolved™.

If you have a question about our market study or want us to help you understand how market dynamics are impacting your investments, just give us a call, we’d be happy to help.

Dylan Simon Vice President

Dylan Simon Jerrid Anderson Matt Laird Daryl Burton Ashley Woodliff Vice President Associate Associate Associate Project Coordinator O 206 624 7413 O 206 382 8554 O 206 624 7416 O 206 382 8553 O 206 223 1433 M 206 414 8575 M 206 499 8191 M 425 736 5516 M 602 920 7878 [email protected] [email protected] [email protected] [email protected] [email protected]

WWW.DYLANSIMON.COM 1 2016 Seattle Neighborhood Apartment Market Study How We Work For You

Our team is decidedly diverse, to meet the needs of our clients and provide Our process is unique to the industry and provides our clients the highest level of brokerage services. We take a unique approach to the the greatest advantage over the marketplace. It leverages market business, serving a complementary set of clients in the market in order expertise, use of technology and continuous thought leadership in to understand the market better than anyone – and delivering that market order to provide our clients an unmatched level of service. knowledge to our clients. Our Listings Reach the Most Investors :: We reach over 7,500 commercial real estate professionals on a weekly basis, ensuring complete market coverage.

Our Marketing Turns Heads :: Our materials are often heralded as the absolute best in the business, getting more looks and more offers. PRIVATE INSTITUTIONAL CLIENTS CLIENTS Our Research & Investment Advice Creates Trust :: Investors care about what we say, leading to higher sales prices for our clients. 5 UNIT - 50 UNIT 50 UNIT - 500 UNIT TRANSACTIONS TRANSACTIONS Our unique process creates an advantage for LAND/DEVELOPMENT our clients. Allow us to TRANSACTIONS turn our expertise into your profit.

2 COLLIERS INTERNATIONAL SEATTLE 2016 Seattle Neighborhood Apartment Market Study Our Results

The Proof is in Our Results. Our Process = Your Profit 2015 REPRESENTATIVE SALES FULLY MARKETED SALE OFF-MARKET TRANSACTIONS 48 Unit Sale 20 Unit Mixed Use Apartment Building URBANE REDMOND Represented Seller Sky Lanai $4,800,000 Sale Price 19% above market pricing

15 Unit Sale

Represented Buyer Estelle Apartments $1,260,000 Sale Price NO COMMISSION PAID BY SELLER

6 Unit Sale Represented Buyer Arlene’s Apartments $9,500,000 Sales Price $1,500,000 Sale Price Sold for 50% over assessed value Record Setting $450,000 / Unit WWW.DYLANSIMON.COM 3 2016 Seattle Neighborhood Apartment Market Study

4 COLLIERS INTERNATIONAL SEATTLE 2015 YEAR IN REVIEW

2016 Seattle Neighborhood Apartment Market Study

2015 YEAR IN REVIEW

WWW.DYLANSIMON.COM 5 2016 Seattle Neighborhood Apartment Market Study SEATTLE’S URBAN NEIGHBORHOODS

The region’s urban-located, core neighborhoods remain the focal-point of BALLARD GREENLAKE UNIVERSITY developers and investors alike. The 14 neighborhood markets comprising WALLINGFORD DISTRICT Urban King are undoubtedly the most watched in the region and for that FREMONT reason alone are afforded analysis with the greatest level of granularity. KIRKLAND

QUEEN This past year marked the first year when a slew of new development was ANNE set for delivery and economic fundamentals proved strong – so strong that proposed development continues to expand into future years. As of SOUTH CAPITOL LAKE UNION WEST December 2014, less than 2,000 units were planned for delivery in 2018. HILL BELLEVUE That figure has risen to over 13,000 units. BELLTOWN FIRST DOWNTOWN HILL The interest in development in these markets is no surprise given stable fundamentals. The investment sales market provides further incentive to SOUTH keep developing – fueled by sales prices on a PPU and PPSF basis hitting DOWNTOWN PIONEER new milestones. Urban King will remain a market to watch in 2016. SQUARE

WEST SEATTLE CENTRAL DISTRICT “As of December 2014, less than 2,000 units BEACON HILL RAINIER VALLEY were planned for delivery in 2018. That figure has risen to over 13,000 units.”

WA 900 Seattle by the numbers...

NUMBER ONE SECOND best place in the THIRD highest median salary FOURTH richest city in the FIFTH fastest growing city to find a job country to own rental propery in the country U.S. city in the U.S. 1 (WalletHub, 2015) 2 (All Property Management, 2015) 3 (Forbes, 2015) 4 (USA Today, 2015) 5 (Forbes, 2015) 6 COLLIERS INTERNATIONAL SEATTLE MARKET FUNDAMENTALS 2016 Seattle Neighborhood Apartment Market Study URBAN KING $1,327 13.0% $2.04 11.5% 1.9% 20BP 2015 AVG RENT PER UNIT AVG RENT PER SF CURRENT VANCACY OUR MARKET $1,249 $1.92 2.1% 2014 AVG RENT PER UNIT AVG RENT PER SF CURRENT INSIGHT VANCACY Even with record delivery of new apartment units in Urban King in 2015, rental rates continue to rise while vacancy in boutique apartments remains at an incredibly low 1.9%. 24,976 36,313 The quantum of delivery of new apartment units begins a UNITS DELIVERED UNITS PLANNED massive ascension in 2016 with over 9,000 units planned for delivery. During 2017 – 2019 another 27,000 units are 12,665 13,194 planned, with even more developments in early planning 9,051 stages. The coming years will test the resilience of many neighborhoods within Urban King.

$1,400 $1,400 8.00% 8.00%

6,449 7.00% 7.00% $1,200 $1,200 Vacancy Rate 6.00% 6.00% $1,000 $1,000 5,155 5.00% 5.00%

$800 $800 4,060 4.00% 4.00%

$600 $600 3,351 3.00% 3.00%

Monthly Rent Monthly 2,645 2,696 $400 $400 2,111 2.00% 2.00% 1,717 1,403 $200 $200 1,389 1.00% 1.00% 1,046 1,078 942 807 883 619 620 $0 $0 0.00% 0.00% Spring Fall Spring FallSpringSpringFall FallSpringSpringFall FallSpringSpringFall FallSpringSpringFall FallSpringSpringFall FallSpringSpringFall FallSpringSpringFall FallSpringSpringFall FallSpringSpringFall FallSpringSpringFall FallSpringSpringFall FallSpringSpringFall FallSpringSpringFall FallSpringSpringFall FallSpring2016Fall 2017Spring 2018Fall 20192016 2017 2018 2019 2000 2000 2001 2001200020022000200220012003200120032002200420022004200320052003200520042006200420062005200720052007200620082006200820072009200720092008201020082010200920112009201120102012201020122011201320112013201220142012201420132015201320152014 2014 2015 2015

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Monthly Rent Vacancy Rate Units Delivered Units Planned Rent & Vacancy Data Provided by Dupre + Scott For more comprehensive data, visit: www.duprescott.com

SIXTH best city for SEVENTH best city for EIGHTH most walkable city NINTH “greenest” city in TENTH best Millenials in America employee satisfaction (, 2015) America (Nerdwallet, 2015) city for singles 6 (Niche, 2015) 7 (WalletHub, March 2014) 8 9 10 (Nerdwallet, 2015) WWW.DYLANSIMON.COM 7 2016 Seattle Neighborhood Apartment Market Study 2015 SALES & HISTORICAL SALES TRENDS

2000-2015 SALES TRENDS

$400 7.0% 6.3% 6.2% 6.3% $350 $335 5.9% 6.0% 5.7% 5.5% 5.6% 5.5% $295 $300 5.0% 5.1% 5.0% 4.8% $253 4.5% 4.5% 4.5% $250 4.2% $225 $232 4.1% $213 $205 4.0% $202 $195

$200 Rate

PPSF $174 $175 $161 Cap 3.0% $151 $144 $150 $150 $136

2.0% $100

$50 1.0%

$0 0.0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Year Year

URBAN KING COUNTY: 5 UNIT TO 50 UNIT APARTMENT SALES 2010 2011 2012 2013 2014 2015

Number of Sales 60 90 114 120 118 124

Total Sales Volume $85M $188M $264M $281M $343M $416M

Average PPU $127,282 $133,474 $147,870 $181,118 $192,284 $241,154

Average PPSF $175 $195 $213 $253 $295 $335

Average Cap Rate 5.7% 5.5% 5.1% 4.8% 4.5% 4.1%

Total Deliveries 2,645 620 2,696 4,060 5,155 6,449 Sales Data: 5-50 units

8 COLLIERS INTERNATIONAL SEATTLE

Custom Apartment Investment Report ‐ 1/27/2016 ‐ Page 1 of 1 Source: The Apartment Investment Report, Copyright 2006 by Dupre + Scott Apartment Advisors, Inc. 2016 Seattle Neighborhood Apartment Market Study EMPLOYMENT GROWTH YEAR-OVER-YEAR GROWTH 15,798 15,916 21,351 16,022 26,747 URBAN KING JOBS JOBS JOBS JOBS JOBS 2011 2012 2013 2014 2015

200,000 HOTTEST & COLDEST job growth in the last 3 years 180,000 23,734 RETAIL & SERVICES 160,000

140,000 1,870 TRADE, TRANSPORATION & UTILI- TIES 120,000 STEM JOB 100,000 JOBS GROWTH 80,000 18% 60,000 IN LAST 4 YEARS

40,000 40% IN LAST 10 YEARS 20,000

0 OUR MARKET INSIGHT In a recently published study from the Bay Area Council Economic Institute, data illustrates Construction/Manufacturing Retail/Service Trade/Transportation/Utilities that for every new Professional/STEM job, 4.3 additional jobs are created. The current ratio for Professional/STEM FIRE Education/Healthcare Government Urban King Professional/STEM job creation to all other job creation is 1 to 2.35. Given “multiplier” *Due to incomplete employment data for Nov.-Dec. 2015, the existing data was annualized and trended by industry for the six different submarkets. job growth dynamics in other regions, this is a signal to expect robust job creation in the other six job sectors in the near future in Urban King.

WWW.DYLANSIMON.COM 9 2016 Seattle Neighborhood Apartment Market Study 591 units

URBAN KING 2,138 3,842 units DEVELOPMENT PIPELINE units

58,473 UNITS PLANNED 76% OF KING COUNTY PIPELINE DOWNTOWN 68% OF TOTAL PIPELINE 1,411 559 VS units units 8,785 1,174 48,726 units CENTRAL/ UNITS PLANNED UNITS 1,040 BEACON HILL/ AS OF DEC 2014 units RAINIER VALLEY 121 units VS6,241 UNITS PLANNED 533 units 1,776 AS OF DEC 2014 4,400 units 1,650 UNITS units VS3,861 UNITS PLANNED AS OF DEC 2014 1,910 units 1,124 5,433 SOUTH units units LAKE UNION 2,102 units WEST BELLEVUE 1,063 13,133 units UNITS 4,140 DELIVERIES BY YEAR units 2016 9,051 5,985 2017 12,665 VS10,445 UNITS UNITS PLANNED 1,696 2018 13,194 units AS OF DEC 2014 2019 1,403 VS5,594 Future 22,160 UNITS PLANNED 10 COLLIERS INTERNATIONAL SEATTLE AS OF DEC 2014 2016 2017 2018 2019 FUTURE 552 2016 Seattle Neighborhood Apartment Market Study units 496 units 464 2,089 units 373 units 581 units WEST units 63 units 367 BELLTOWN SEATTLE units 1,290 BALLARD 2,470 units 1,387 4,647 UNITS UNITS 584 1,542 103 units units UNITS units VS2,277 VS1,553 683 UNITS PLANNED UNITS PLANNED VS AS OF DEC 2014 2,905 units AS OF DEC 2014 UNITS PLANNED AS OF DEC 2014 50 units 572 units 1,134 125 units units UNIVERSITY 900 KIRKLAND 83 units units DISTRICT GREENLAKE/ 220 WALLINGFORD/ 1,295 units 1,571 FREMONT UNITS 3,498 units 214 UNITS 2,150 913 UNITS 582 units units VS1,535 110 units UNITS PLANNED VS1,913 VS AS OF DEC 2014 UNITS PLANNED 1,850 AS OF DEC 2014 UNITS PLANNED AS OF DEC 2014 259 units 643 22 units units 275 S. DOWNTOWN/ 1,304 units 692 units QUEEN PIONEER units 406 405 SQUARE 1,106 units ANNE units units 1,824 56 278 units CAPITOL UNITS 136 units FIRST HILL/ 468 HILL units 1,204 YESLER units TERRACE VS1,169 850 4,309 3,740 UNITS PLANNED UNITS 436 units UNITS UNITS AS OF DEC 2014 1,136 1,953 units units VS779 UNITS PLANNED VS3,342 VS3,624 AS OF DEC 2014 UNITS PLANNED UNITS PLANNED 2016 2017 2018 2019 FUTURE AS OF DEC 2014 AS OF DEC 2014 WWW.DYLANSIMON.COM 11 2016 Seattle Neighborhood Apartment Market Study HIGHLIGHTING APARTMENT MANAGEMENT COMMUNITY IS KING By: Chasten Fulbright, CPM

How the hell do you make a small building pencil when taxes are $3k/ The front door has to appeal to the renter more than anything else. That unit and overall expenses are upwards of $8k/unit? By creating community, front door is the architecture, it’s the retail, it’s the neighborhood itself. that’s how. I know that doesn’t make any sense, but creating community Retail has to be dialed into the renter and the neighborhood; failing on the allows rent to outpace expenses. retail front is a poison pill. No retail? No problem, as long as curb appeal has the property’s strongest expression of value. Win them at the front door and Creating community requires truly knowing who your target renter is. It’s everything else matters less, including price. not some broad-reaching demographic that applies to large developments located at the heart of an employment center, it’s knowing that character The exterior sets the brand, make sure it translates to the interior. A building neighborhoods appeal to the personality of individuals. You have to know that’s all bark and no bite will not get the rents needed to outpace expenses. those individuals intimately and they have to guide your every decision. Speaking of translation, let humans manage buildings instead of processes. When the tenant and the manager speak the same language, you win. And Knowing your renter must guide the let these humans be professionals who make living wages. A discounted property manager is a liability. Explore opportunities to manage with fully- marketing. Plug and play marketing staffed buildings in the area. might move apartments, but it won’t Community is made this way. It’s made when the target renter is truly known maximize rents. Marketing has to be as and the project responds well to their wants and needs. When that happens, price becomes secondary, and you can ask for more. When your income boutique as your renter and it has to fit outpaces your expenses, projects not only work, but they flourish. them perfectly. You’ve gotta get them to the front door.

Chasten Fulbright is a Principal at Blanton Turner, a Seattle-based real estate consulting, marketing, and management firm dedicated to helping developers and investors differentiate their properties both in identity and profits. www.blantonturner.com

12 COLLIERS INTERNATIONAL SEATTLE 2016 Seattle Neighborhood Apartment Market Study How to use this Market Study

The neighborhood where you own apartments. Find See pages 16-37 of this market study

The growth in your apartments per unit and per Compare square foot value since 2014.

Nearby sales and planned developments and contact Locate us for more information about your neighborhood.

OUR MARKET INVESTOR Read INSIGHTS and TIPS for a qualitative update.

Us to find out what you apartment building is worth in Email 2016. [email protected] or [email protected]

WWW.DYLANSIMON.COM 13

2016 Seattle Neighborhood Apartment Market Study

BALLARD PAGE 26 UNIVERSITY DISTRICT PAGE 28

GREENLAKE WALLINGFORD KIRKLAND FREMONT PAGE 36 PAGE 24

QUEEN ANNE PAGE 19

SOUTH LAKE UNION PAGE 22 CAPITOL HILL WEST BELLEVUE PAGE 16 PAGE 36 BELLTOWN PAGE 32 FIRST HILL DOWNTOWN PAGE 32 PAGE 18

SOUTH DOWNTOWN PIONEER SQUARE PAGE 18

WEST SEATTLE CENTRAL DISTRICT PAGE 30 BEACON HILL RAINIER VALLEY PAGE 34

WWW.DYLANSIMON.COM 15

WA 900 2016 Seattle Neighborhood Apartment Market Study $265,774 24.6% $422 23.2% 4.0% 40BP 2015 AVG PRICE PER UNIT AVG PRICE PER SF CAP RATE Capitol Hill 2015 Sales AVERAGE VACANCY RENT PER SF $2.18 $213,318 $342 4.4% 2014 AVG PRICE PER UNIT AVG PRICE PER SF CAP RATE CAPITOL HILL CAPITOL 2.5%

Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Buyer / Seller

Mercer IV LLC 19th & Mercer 526 19th Avenue E 2013 50 43,475 $25,150,000 12/15/2015 $503,000 $578 4.0% Meriwether Partners

Kensington Plus One Properties 1627 Belmont Avenue 1914 33 27,000 $3,396,700 11/20/2015 $102,930 $126 Unavailable Apartments Richard & Shirley Leckman

Milestone Properties East John Court 1415 E John Street 1900 6 2,499 $1,280,000 10/23/2015 $213,333 $512 3.3% Westin L Johnson CAPITOL HILL CAPITOL 1150 10th Wheeler Cap Hill LLC 1150 10th Avenue E 1955 6 3,542 $1,100,000 9/30/2015 $183,333 $311 Unavailable Avenue E Peggy Chatburn O’Connor

Seattle Investors Group Oriana LLC Oriana 416 Summit Avenue E 1928 10 7,620 $2,680,000 9/30/2015 $268,000 $352 3.8% Frederick Van Hoof

Naficy Investments Lancaster 704 E Thomas Street 1924 32 19,690 $8,246,800 9/30/2015 $257,713 $419 3.6% George Frank

Pang Family Trust Claringle 1803 E John Street 1910 13 7,438 $3,493,500 9/4/2015 $268,731 $470 3.2% Kevin MacPherson Living Trust CAPITOL HILL CAPITOL Westlake Associaties Summit 1700 Summit Avenue 1963 20 9,317 $4,125,000 7/28/2015 $206,250 $443 3.8% Ronald Mark Douglas

Paul & Sharon Ramey Kaigani 3232 Fuhrman Avenue E 1960 5 5,024 $1,632,000 7/17/2015 $326,400 $325 Unavailable JRM Investments LLC

XERAD II LLC Wellington 535 16th Avenue E 1929 25 15,386 $8,095,000 7/17/2015 $323,800 $526 4.4% Hamilton Urban Partners

Stratford Company Celeste 304 E Olive Place 1906 15 8,394 $2,450,000 6/30/2015 $163,333 $292 3.7% Peterson Property Rentals LLC

CAPITOL HILL CAPITOL 511 Maiden Avenue Trimark Property Group 511 Maiden Avenue E 1909 6 5,096 $2,000,000 6/30/2015 $333,333 $392 4.7% E Nicholas Corff

Westlake Associates Win Forever 615 E Mercer Street 1957 13 7,080 $3,147,400 4/16/2015 $242,108 $445 4.6% Win Forever LLC

East Madison Miller Park Flats 220 23rd Avenue E 1991 7 4,476 $2,300,000 3/27/2015 $328,571 $514 5.3% SPG 220 23rd LLC

AVERAGE 1940 17 10,681 $4,935,457 $265,774 $422 4.0%

Investors that bought properties in 2012 and sold them in 2015 realized massive gains, some more than doubling their original purchase price – often with minimum

CAPITOL HILL CAPITOL INVESTOR improvements. In Capitol Hill, the pricing of some vintage apartments are keeping pace newer product with pricing rising to over $500 per net rentable square foot. TIP Such strength in pricing is due to investor demand for boutique buildings with character, helping owners capture excellent rent gains.

16 COLLIERS INTERNATIONAL SEATTLE 2016 Seattle Neighborhood Apartment Market Study

Deliveries CAPITOL HILL Yale AvenueCapitol North Hill Development Pipeline 2016 2017 2018 2019 FUTUREWashington Place East

Lakeview Boulevard East 2016 2017 2018 2019 FUTURE East Prospect Street 1,304 1,136 1,204 22 643 Numbers within circles on map below indicates number of units in East Helen Street *Indicates Micro. †Indicates Possible Condo. eachEast development. Ward Street

Bellevue CourtBelmont East Avenue East Avenue East 34th 37th Avenue37th East

Broadway East East Aloha Street Turner Way East

17th Avenue East17th

18th Avenue East18th Avenue East19th

20th Avenue East20th 21st Avenue East 10th Avenue 10th Avenue East 16th Avenue East

22nd Avenue East22nd

11th Avenue Avenue East 11th East Aloha Street

Federal Avenue EastAvenue Federal Harvard Avenue EastAvenue Harvard 34 44 OUR MARKET Valley Street East Valley Street

47 36th Avenue East Fairview Avenue North INSIGHT CAPITOL HILL 170 The emerging East Slope of 28th Avenue East Capitol Hill Roy Street East Roy Street

12th Avenue12th East continues to take shape. Developers completed Mercer Street 136East Roy Street exceptional new apartment projects east Lake Boulevard East East Mercer Street 39th Avenue East Mercer Street 44 32 of 18th Avenue as early as 2012 and now FUTURE LINK specific micro-markets are forming along E. Madison and the retail corridor of 23rd & 36 Republican Street 22 East Republican Street Union. In 2016, several hundred units are set

15th Avenue15th East for delivery on Capitol Hill’s East Slope with 27th Avenue 27th Avenue East

13th Avenue Avenue East 13th 14thAvenue East

McGilvra Boulevard East

Malden Avenue Malden Avenue East additional projects slated for 2017 – 2019. Melrose Avenue Melrose Avenue East East Arthur Place East Harrison Street Eastlake Avenue Eastlake Avenue East

Harrison Street 47 Dewey Place East 42* 25thAvenue East CAPITOL HILL 43 Avenue10th East OF East Thomas Street OPE CA 70 SL Avenue East 23rd PIT

26th Avenue East Thomas Street Harvard Avenue East SEastT Thomas Street OL EA H Boren Avenue Boren Avenue North 38 IL 86East John Street L

29th Avenue Avenue East 29th John Street East East John Court East John Street 100 100East Loretta Place 52 51 60 East Glen64 Street East Florence Court East

31st Avenue Avenue East 31st

30th Avenue30th East Denny Way East Denny Way 37 26 24th Avenue East Stewart Street East Denny Way

Belmont Avenue 55 65 Summit Avenue 34 50

11th Avenue 32nd Avenue

Boylston Avenue Boylston Avenue East 75*

Minor Avenue Minor Avenue North 130 44 95

29th Avenue 29th East Howell Street

14th Avenue 14th 13th Avenue CAPITOL HILL 20 Martin Luther King Junior East Way 57 160 157 Avenue23rd 41 * East Schubert Place

Boylston Avenue 33

36 Nagle Place 41 East Olive Street East Olive Way Avenue15th 90 East Grand Avenue Olive Way 221 Broadway East East Pine Street

27th Avenue27th

33rd Avenue33rd Avenue34th

35th Avenue35th Avenue36th

37th Avenue 37th

Harvard Avenue 20 40thAvenue 50 137 55* 12th Avenue 74 Pine Street 70 75 100 East 26th Avenue Howell Street 19thAvenue

7th Avenue Avenue Melrose 89 Bellevue Avenue Bellevue 60 140 Madrona Drive

21stAvenue 20thAvenue 105* Avenue22nd CAPITOL HILL 8th Avenue 135 144 41 96 96 East Union Street East Union Street Boren Avenue Avenue 18th 92 41 East Union Street

6th Avenue Pike Street Terry Avenue 9th Avenue 11th Avenue 11th

Martin Luther King Junior Way

30thAvenue

31st Avenue31st

32nd Avenue32nd 16th Avenue East Spring Street 17th Avenue Avenue 19th Seneca Street

Spring Street Broadway Court WWW.DYLANSIMON.COM 17 2016 Seattle Neighborhood Apartment Market Study Downtown & South Downtown/Pioneer Square Developments 9th Avenue East Spruce Street 4th Avenue

Harvard Avenue East Western Avenue 25th Avenue East

10th Avenue

13th Avenue East

12th Avenue East Fairview Avenue North 2nd Avenue Elliott Avenue West DOWNTOWN SOUTH DOWNTOWN/PIONEER SQUARE5th Avenue

14th Avenue WA 305 East Thomas Street 13th Avenue Boren Avenue

1st Avenue

8th Avenue CAPITOL HILL CAPITOL † Taylor Avenue † 450 John Street WA 304; WA 305 East John Court East John Street Broad Street 550 Broadway East Broadway 6th Avenue 6th Avenue North 8th Avenue 8th Avenue North Avenue9th North WA 304 Terry Avenue Avenue North Terry

Minor Avenue Melrose Avenue East Denny Way Belmont Avenue

23rd Avenue23rd East 812 Avenue 15th 16th Avenue 447Denny Way East Denny Way East Yesler Way 12th Avenue East Yesler Way Avenue19th 20th Avenue 24th Avenue 24th Avenue East

11th Avenue 2nd Avenue 2nd Avenue North

21st Avenue Avenue East 21st 10th Avenue 10th Avenue East

22nd Avenue22nd East

3rd Avenue South Elliott Avenue Western Avenue 393 Boylston Avenue East 82

Westlake Avenue WestlakeNorth

14th Avenue 14th DexterAvenue 396 706 East Olive Way South Washington Street Nagle Place

Aurora Avenue † Cedar Street 686 372 Terry Avenue 20th Avenue South

15thAvenue Lenora Street8th Avenue 300 356 45 9th Avenue South Olive Way South Main Street East Madison Street Boren Avenue SouthSouth Main Street 154 East Pine Street 40 East Pine Street

2nd Avenue2nd South 200 Avenue17th South Bell Street 428 12th Avenue 108 South Jackson Street South Jackson Street East Pike Street South Jackson Street East Pike Street

19thAvenue † 11th Avenue 200 South Jackson Place Summit Avenue PIONEER SQUARE Pine Street Bellevue Avenue Elliott Avenue Vine Street Blanchard Street Boren Avenue East Union Street South KingEast Street Union Street East Union Street South King Street

DOWNTOWN/S DOWNTOWN/ DOWNTOWN/S 125 Virginia Street Pike Street Avenue5th South 89 7th Avenue Railroad Way South Elliott Avenue 6th Avenue South Weller Street 8th Avenue 5th Avenue 9th Avenue Rainier Avenue South

10th Avenue10th South 12th Avenue 12th Avenue South Broadway Court

Stewart196 Street Avenue21st 4th Avenue East Marion Street 3rd Avenue Seattle Boulevard South 54

24th Avenue 24th 398 Madison Street Avenue 23rd

Broadway

7th Avenue SouthAvenue 7th 1st Avenue50 East Columbia Street

Maynard AvenueMaynard South 200 7th Avenue † 50 3402nd Avenue 107 South Dearborn Street South Dearborn Street Pine Street Railroad Way South 25th Avenue

Western Avenue East Cherry Street SouthAvenue 8th

Alaskan South Way CAPITOL HILL CAPITOL University Street OUR MARKET Jose Rizal Bridge East James Court INSIGHT Deliveries East James Street Pioneer Square, as an urban

169 17th Avenue 19th Avenue 2016 2017 2018 2019 FUTURE Avenue7th South Columbia Street East Jefferson Street neighborhood, is on the rise 4th Avenue South Southwith Plummer a spate Street of new retailers Spring Street 278 436 0 0 136 and Airportrestaurants Way South and a growing Golf Drive South South Charles Street Marion Street 9th Avenue OUR MARKET 10th Avenue number of tech employers and *Indicates Micro. †Indicates Possible Condo. Sturgus Avenue South 160 James Street 18th Avenue East Alder Street Madison Street 840 tech incubators. Apartment INSIGHT developers are well-rewarded South Norman Street 2nd Avenue Extension South East Spruce Street Seattle with rental rates reaching in Rainier Avenue South Downtown’s development pipelineWA 305 132 grew 55% since December 2014, East Fir Streetexcess of $3.20 SF but due to with approximately 3,400 more the lack of land and zoning we 15th Avenue South 12th Avenue 12th Avenue South

CAPITOL HILL CAPITOL WA 304 Yesler Way East Yesler Way do not expect many boutique units currently planned than a Dilling Way 2016 2017 2018 2019 FUTURE 23rd Avenue South year ago. The general consensus Alaskan Way South developments in the future. is if you aren’t building high Deliveries Numbers within circles on map below indicates number3rdAvenue South of units in

5th Avenue 5th Avenue South South Addition Street rise, you can’t afford the land. each development.East Frontage Road South

21st Avenue21st South 14th Avenue 14th Avenue South 15th Avenue South 16th Avenue South 17th Avenue South Although there are handful of 2016 2017 2018 2019 FUTURE South 6th Avenue South

historic boutique apartment South Jackson Street Avenue24th South 18th Avenue 18th Avenue South buildings downtown they are a 591 2,138 1,174 1,040 3,842

4th Avenue4th South

22ndAvenue South 6th Avenue 6th Avenue South 7th Avenue 7th Avenue South 25th Avenue 25th Avenue South 20th Avenue 20th Avenue South South King Street Avenue12th South 19th Avenue South dying breed. We do not foresee *Indicates Micro. †Indicates Possible Condo. 9th Avenue South many trades occurring in the future of downtown boutique apartment buildings. 2015

CAPITOL HILL CAPITOL NO SALES

18 COLLIERS INTERNATIONAL SEATTLE 2016 Seattle Neighborhood Apartment Market Study CAPITOL HILL Queen Anne 2015 Sales $265,233 28.6% $360 17.5% 3.8% 60BP 2015 AVG PRICE PER UNIT AVG PRICE PER SF CAP RATE AVERAGE RENT VACANCY PER SF $2.14 $206,314 $306 4.4% 2014 AVG PRICE PER UNIT AVG PRICE PER SF CAP RATE 1.9%

Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Buyer / Seller

57 W Etruria L & L Building II LLC 57 W Etruria Street 1994 8 7,296 $2,450,000 12/22/2015 $306,250 $336 3.3% CAPITOL HILL Street FNWD Investment LLC

Naoto Yotsugi 17 Etruria Street 17 Etruria Street 1977 9 6,030 $2,800,000 12/1/2015 $311,111 $464 4.1% Brian Branch

Donald V & Bonnie J Romain Bay Park Terrace 825 W Nickerson Street 1952 6 3,960 $1,700,000 11/17/2015 $283,333 $429 Unavailable Dale E Hicklin

Metropolitan Companies Franco Villa 1108 9th Avenue W 1930 13 10,966 $4,182,000 11/6/2015 $321,692 $381 2.9% Silvana Ho & David Ho

Lake Terrace Apartments LLC

Lake Terrace 512 Newton Street 1957 24 13,752 $6,249,400 10/22/2015 $260,392 $454 3.5% QUEEN ANNE Janet Lou Clarke

Top Spot LLC Queen Anne View 2845 14th Avenue W 1990 8 6,722 $2,573,800 9/28/2015 $321,725 $383 4.0% John R & Wendy R Hunter

Nob Hill Nobi Hill 6 LLC 819 Nob Hill Avenue 1908 6 5,240 $1,864,665 9/4/2015 $310,778 $356 3.0% Apartments Nob Hill LLC

Shining Start Real Estate LLC 4 Florentia Street 4 Florentia Street 1990 10 8,296 $2,775,000 8/28/2015 $277,500 $334 4.2% Florentia Apartments LLC

2731 Nob Hill Qixin International LLC 2731 Nob Hill Avenue N 1909 5 4,935 $1,300,000 8/26/2015 $260,000 $263 3.7% Avenue N Catherine Crain CAPITOL HILL

2635 Prosch Walls Property Management 2635 Prosch Avenue W 1955 7 3,360 $1,200,000 8/17/2015 $171,429 $357 3.6% Avenue W AI Management LLC

Than Associates Anne Marie 310 Aloha Street 1909 10 4,325 $1,850,000 8/7/2015 $185,000 $428 5.1% CRE Anne Marie LLC

Meter Properties Prestige Lane 512 5th Avenue W 1957 20 12,600 $3,666,000 7/31/2015 $183,300 $291 2.3% Laurence Gill

Columbia Partners Business Park LLC Atria Villa 1251 Taylor Avenue N 1978 26 26,620 $9,489,600 7/30/2015 $364,985 $356 Unavailable

Adonis LLC CAPITOL HILL

801 W McGraw Miki Oku 801 W McGraw Street 1957 8 4,806 $1,949,200 7/16/2015 $243,650 $406 3.2% Street Denholme Properties LLC

5AW Property Investors LLC Whitely Manor 524 5th Avenue W 1966 15 18,315 $5,027,000 6/30/2015 $335,133 $274 4.3% Anne Tonks

WWW.DYLANSIMON.COM 19 2016 Seattle Neighborhood Apartment Market Study Queen Anne 2015 Sales (Continued)

Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Buyer / Seller

CAPITOL HILL CAPITOL Sophia Residential LLC Sophia 607 W Galer Street 1927 15 10,470 $4,896,833 6/30/2015 $326,456 $468 4.7% Meter Properties

Milestone Properties Hillstone 2650 14th Avenue W 1955 9 6,756 $2,075,000 6/15/2015 $230,556 $307 4.8% 14th Ave W LLC

BC Property Investors LLC Boston Crest 215 Boston Street 1958 24 13,668 $5,050,000 6/5/2015 $210,417 $369 3.2% Margaret/Peggy Sheard

TKN World WA LLC 14th Ave West 2821 14th Avenue W 1960 6 4,543 $1,509,100 6/5/2015 $251,517 $332 5.1% 14th Avenue W LLC

Westlake Associates CAPITOL HILL CAPITOL Tower 1404 3rd Avenue N 1931 15 9,924 $2,635,000 5/29/2015 $175,667 $266 4.9% Julie Benson

NZM Property No 2 LLC Landmark 677 W Emerson Street 1989 5 5,170 $1,825,000 5/29/2015 $365,000 $353 4.7% Thomas Knapp

Envoy Apartments LLC Eden Court 1233 Taylor Avenue N 1988 16 12,930 $5,443,000 4/17/2015 $340,188 $421 5.1% InCity Properties

Puget Vista Alliance Investments LLC Puget Vista 411 W Republican Street 1967 34 28,194 $10,144,900 3/31/2015 $298,379 $360 4.7% Stratford Company

Los Altos & Richard T Leider QUEEN ANNE 303 W Olympic Place 1927 26 17,846 $7,000,000 2/27/2015 $269,231 $392 2.6% Saxonia Gary Eliasen

10th Ave Apartments LLC 1633 10th Ave W 1633 10th Avenue W 1905 6 3,472 $939,350 2/23/2015 $156,558 $271 1.9% Carolyn Bell Living Trust

CJD Investments LLC Clifwood 524 Highland Drive 1956 22 10,354 $3,847,800 2/20/2015 $174,900 $372 3.6% Linda Smith

Mercer Crest LLC Mercer Crest 500 W Mercer Street 1957 32 19,760 $6,856,800 2/12/2015 $214,275 $347 3.9% Gary Marshall

Stratford Company

CAPITOL HILL CAPITOL Bonnie Arms 1418 2nd Avenue W 1948 13 11,474 $3,797,400 1/15/2015 $292,108 $331 3.3% 1418 2nd Ave W LLC

AVERAGE 1953 14 10,421 $3,748,637 $265,233 $360 3.8%

OUR MARKET INSIGHT Queen Anne experienced the largest number of transactions out of all 145 urban Seattle neighborhoods in 2015, nearly doubling the number of sales in Capitol Hill. Pricing on a per- unit basis surged from an average price of $206,314/unit in CAPITOL HILL CAPITOL 2014 to $265,233/unit in 2015. Rising rents and falling cap rates certainly pushed pricing to new highs.

20 COLLIERS INTERNATIONAL SEATTLE Northwest 52nd Street West Commodore Way North 51st Street West Lawton Street Northwest 50th Street Illinios Avenue Northwest Leary Way

31st Avenue West North 46th Street2016Green Seattle Lake Way North Neighborhood Apartment Market Study Northwest 45th Street Northeast 45th Street Queen Anne Development Pipeline Deliveries CAPITOL HILL 7th Avenue 7th Avenue Northeast 5th Avenue 5th Avenue Northeast Leary Way Northwest North 43rd Street 15th Avenue 15th Avenue Northeast 2016 2017 2018 2019 Northeast Roosevelt Way FUTURE

Oregon Avenue WayTexas North 42nd Street West Emerson Place 2016 2017 2018 2019 FUTURE North 41st Street West Roberts Way 259 405 468 0 692 Northeast Memorial Way West Nickerson StreetNumbers within circles on map below indicates number of unitsNorth in 40th Street Ballard Bridge *Indicates Micro. †Indicates Possible Condo. Gilman Avenue West each development. West Emerson Street North 39th Street

4th Avenue Northeast4th Brooklyn Avenue Brooklyn Avenue Northeast

11th Avenue West North 35th Street

University Bridge Walla Walla Road Northeast

Nickerson Street CAPITOL HILL

232 Stone Way North Montlake Boulevard Northeast 100 Carr Place North West Dravus Street East Gwinn Place

North Pacific Street 44th Avenue 44th Avenue West

West Barrett Street 26th Avenue West 24th Avenue West

3rd Avenue West East Hamlin Street 15th Avenue 15th Avenue West 28th Avenue 28th Avenue West Armour Street 22nd Avenue 22nd Avenue West 9th Avenue 9th Avenue West

West Viewmont Way West Prosch Avenue Prosch Avenue West

46thAvenue West West Halladay Street North East Louisa Street Magnolia Boulevard West

8th Avenue 8th Avenue West Queen Anne Drive

39th Avenue 39th Avenue West East Miller Street

Gilman Drive West

West McGraw Street East Lynn Street EastQUEEN ANNE Lynn Street 59 West Boston Street Boston Street

Eastlake Avenue Eastlake Avenue East East Crockett Street 15th Avenue 15th Avenue West

West Howe Street Avenue6th West Howe Street 5th Avenue 5th Avenue North

West Hayes Street 4th Avenue West Hayes Street East Garfield Street Magnolia Bridge Olympic Way West West Galer Street Galer Street

West Lee Street Queen Anne Avenue North 24th Avenue 24th Avenue East

Aurora Avenue NorthAvenue Aurora

Bellevue Avenue East 23rd Avenue 23rd Avenue West

West Prospect Street Prospect Street CAPITOL HILL

Aloha Street Fairview Avenue North 10th Avenue East East Aloha Street 161 Elliott Avenue WestWest Roy Street 97 Roy Street Avenue8th North 6 20 66 150 Avenue19th East 77 34 Mercer Street 92

37 79 Boylston Avenue East

182 40 75 SR-99 SB 79 20 John Street FUTURE

23rdAvenue East 1st Avenue 1st Avenue North

45 Denny Way CAPITOL HILL 173 East Denny Way Broadway East East Denny Way

2ndAvenue North

9th Avenue9th North

In 2015, apartment owners in Queen Anne looking to cash in on premiere sales metrics wisely exited when cap rates compressed below 4%. We predict similar INVESTOR sales to continue through 2016. If you are considering selling in the next two years, now is the time. Otherwise we suggest holding until past 2020 once the TIP market has absorbed all of the new apartment units set for delivery during the next five years.

WWW.DYLANSIMON.COM 21 2016 Seattle Neighborhood Apartment Market Study South Lake Union 2015 Sales 2015 NO SALES

AVERAGE VACANCY RENT PER SF $2.28 2014 NO SALES CAPITOL HILL CAPITOL 3.6%

Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Buyer / Seller NO 5 UNIT TO 50 UNIT SALES AVERAGE

CAPITOL HILL CAPITOL OUR MARKET We expect aggressive buyers will pay record pricing for boutique apartment buildings INSIGHTS located on the Dexter corridor as rental rates for the smaller vintage buildings draft off Although there were no boutique apartment transactions in South Lake INVESTOR of the greater than $3.50/square foot rental rates of new apartment development in Union it was the most active investment neighborhood for buildings larger South Lake Union. As Chasten from Blanton Turner mentioned on Page 12, owners that than 50 units, half of which sold for well over $100,000,000. Given a TIP build a sense of community in their apartment buildings will control the most stable and development pipeline of over 13,000 units in South Lake Union, we expect profitable apartment buildings in this market. a large volume of apartment transactions in the coming years. CAPITOL HILL CAPITOL $298,129 18.8% $385 6.2% 3.4% 100BP 2015 AVG PRICE PER UNIT AVG PRICE PER SF CAP RATE

2014 $251,037 $363 4.4% Eastlake 2015 Sales AVG PRICE PER UNIT AVG PRICE PER SF CAP RATE

Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Buyer / Seller

Plus One Properties

CAPITOL HILL CAPITOL Gladstone 2038 Yale Avenue E 1928 6 5,376 $1,850,000 12/21/2015 $308,333 $344 2.4% Hammock Family LLC

Yale Apartments LLC Yale 2032 Yale Avenue E 1930 12 9,030 $4,773,800 10/28/2015 $397,817 $529 4.1% Plus One Properties

Toran Real Estate Investments LLC Yates 2355 Eastlake Avenue E 1928 26 17,323 $4,894,200 10/26/2015 $188,238 $283 3.8% Laura F Stockwell

AVERAGE 1982 14 10,576 $3,839,333 $298,129 $385 3.4% EASTLAKE SOUTH LAKE UNION/

22 COLLIERS INTERNATIONAL SEATTLE 2016 Seattle Neighborhood Apartment Market Study West Crockett Street East Newton Street

Yale Place East CAPITOL HILL SouthNewton LakeStreet Union Deliveries 2016 2017 2018East Howe2019 StreetFUTURE Howe Street Development Pipeline 2016 2017 2018 2019 FUTURE 1,650 1,910 4,140 0 5,433 Peach Court East Numbers within circles on map below indicates number of units in East Blaine Street *Indicates Micro. †Indicates Possible Condo. each development.

4th Avenue4th West Hayes Street East Galer Street East Olin Place West Garfield Street 65

Queen Anne Avenue NorthAnneQueen 6th Avenue North EASTLAKE Northeast Boat Street Garfield Street Dexter Avenue North

8th Avenue8th West

9th Avenue9th West

6th Avenue 6th Avenue West Avenue5th West 10th Avenue10th West North 37th Street CAPITOL HILL

Portage Bay Place East West Galer Street Galer Street 62 East61 Galer Street Northeast Pacific Place East Galer Street Comstock Place East Martin Street Northeast San Juan Road

Aurora Avenue NorthAvenue Aurora 317 32 Auburn Place East Olympic Way West 8th Place West Grandview Place East 296 Avenue NorthWallingford 50 West Lee Street East Allison Street Federal Avenue East

Fuhrman Avenue East 800 North 34th Street Tower Place Comstock Street 51 West Comstock Street 110* 384 Highland Drive Broadway East West Highland Drive Avenue East11th

HarvardAvenue East

24thAvenue East

Montlake Boulevard East Prospect Street Boyer Avenue East West Prospect Street East Roanoke Street East Roanoke Street CAPITOL HILL

15th Avenue East15th

Yale Avenue East East Louisa Street

17th Avenue Avenue East 17th Avenue East21st

18th Avenue Avenue East 18th Avenue East 19th Avenue East 20th

South Warsaw Street

Fairview Avenue North Avenue East 10th

BoylstonAvenue East

Ward Street Royal Court East 61 East Miller Street West Kinnear Place 24 Belmont Avenue East 24

West Aloha Street Aloha Street Minor Avenue East East Lynn Street East Lynn Street 15thAvenue East

Franklin Avenue EastFranklin 45 Eastlake Avenue East 12th Avenue 12th Avenue East 13th Avenue 13th Avenue East 8th Avenue Avenue North 8th East Aloha Street East Aloha Street West Olympic Place 362 500 Avenue19th East West Mercer Place Avenue East 11th East Eaton PlaceEast Blaine Street Fairview Avenue East Valley Street 12thAvenue East 250 Valley Street Boylston Avenue East East Newton Street East Valley Street West Roy Street 162 Valley Street

HarvardAvenue East Roy Street 5th Avenue North Roy Street 218 East Olin Place Taylor Avenue Avenue North Taylor 10th Avenue 10th Avenue East Broad Street 368 Avenue25th East

96 Federal Avenue East

24th Avenue24th East

26th Avenue26th East Mercer Street 206 East Galer Street West Mercer Street East Roy StreetDeliveries Mercer Street CAPITOL HILL Mercer Street East Crescent Drive Elliott Avenue West 2016 2017 2018 2019 FUTURE 340 49 East Galer Street 252 Avenue16th East 51 Avenue15th East 44* 349 122 0 0 83 East Lee Street 211 Republican433 Street

4th Avenue4th West 3rd Avenue West 100 294 Avenue North Terry 242 150 12th Avenue East Avenue13th East Warren Avenue Avenue Warren North

181 AvenueMalden East SR-99 NB 294 Harrison Street167 109 260 292

400 Broadway East Western Avenue West Avenue10th East East Thomas Street Thomas Street Boylston Avenue East 174 843 264 East UNION/ SOUTH LAKE Thomas Street

1st Avenue1st North EASTLAKE Melrose Avenue Melrose Avenue East East John Street 130 Avenue Westlake North 272 East John Court East John Street Broad Street John225 Street

2nd Avenue2nd North 470 461

9th Avenue9th North

1,067 865 Pontius Avenue North Denny Way Westlake Avenue East Denny Way Belmont Avenue East Denny Way Western Avenue Denny Way Harvard Avenue Boren Avenue 11th Avenue 1st Avenue East Howell Street

14th Avenue 14th Dexter Avenue 13th Avenue

2nd Avenue Avenue Taylor Wall Street East Olive Way WWW.DYLANSIMON.COM 23 Terry Avenue Nagle Place

Vine Street 15thAvenue 16th Avenue 8th Avenue Olive Way 5th Avenue 10th Avenue

Alaskan Way Avenue 21st 7th Avenue 9th Avenue East Pine Street Avenue20th Broadway East Madison Street 3rd Avenue 4th Avenue Boylston Avenue Pine Street East Pike Street East Pike Street

19thAvenue 2016 Seattle Neighborhood Apartment Market Study 2015 $258,902 29.4% $354 14.4% 4.2% 30BP Greenlake/Wallingford/Fremont AVG PRICE PER UNIT AVG PRICE PER SF CAP RATE

AVERAGE VACANCY RENT 2015 Sales PER SF 2014 $200,058 $309 4.5% $1.96 AVG PRICE PER UNIT AVG PRICE PER SF CAP RATE CAPITOL HILL CAPITOL 0.7%

Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Buyer / Seller

W Eric & Ruth E Johnson Fremont Five 110 NW 39th Street 1960 5 3,264 $1,100,000 12/7/2015 $220,000 $337 4.4% Julie Freise

Collin Hagstrom Lisa Carol 4405 Corliss Avenue N 1926 19 13,944 $3,900,000 11/24/2015 $205,263 $280 3.7% Julie Benson

Miranda Place Apartments LLC Miranda Place 4451 Midvale Avenue N 1966 9 9,440 $3,575,000 11/17/2015 $397,222 $379 5.0%

GREENLAKE/ Plus One Properties

Casa Barbara Cadence Capital

WALLINGFORD/FREMONT 730 N 85th St 1971 16 15,153 $3,171,800 11/9/2015 $198,238 $209 Unavailable Apartments Hope Soley

Collin Hagstrom 42nd Street 951 N 42nd Street 1962 18 14,421 $3,590,000 10/29/2015 $199,444 $249 4.1% 42nd Street Investors LLC

Lorentzen McCready Properties LLC 411 N 44th Street 411 N 44th Street 1965 8 4,995 $2,230,000 10/19/2015 $278,750 $446 4.4% Collin Hagstrom

Robert McConaughty Herzig 4301 Fremont Avenue N 1927 7 7,001 $2,670,000 8/21/2015 $381,429 $381 4.1% Thomas Backus CAPITOL HILL CAPITOL

AET Homes LLC North Greenlake 1121 N 91st Street 1986 15 5,740 $2,895,000 8/15/2015 $193,000 $504 Unavailable GSR Capital-North Greenlake LLC

RNK Eastside LLC Park Six 1400 N 46th Street 1953 6 3,600 $1,575,000 6/16/2015 $262,500 $438 4.3% Lemkin Holdings LLC

Walls Property Management Wallingford View 4314 Winslow Place N 1968 5 3,612 $1,210,000 6/9/2015 $242,000 $335 3.8% Melia Scranton

Standard at YS Denzai Co Ltd 3636 Dayton Avenue N 1967 13 9,536 $4,772,400 6/3/2015 $367,108 $500 4.7% Fremont Meter Properties CAPITOL HILL CAPITOL

4208 Phinney Julie Beall 4208 Phinney Avenue N 1967 5 3,250 $1,038,800 5/15/2015 $207,760 $320 3.4% Avenue N Kristine Springer

Whitman 2014 LLC Stone6 4611 Stone Avenue N 1957 6 2,840 $977,500 4/15/2015 $162,917 $344 4.5% Casey Ann Gibson

7000 Greenwood 7000 Greenwood 7000 Greenwood Avenue N LLC 1953 5 6,687 $1,545,000 1/15/2015 $309,000 $231 Unavailable Ave N Avenue N Owl of Minerva Partnership Association

AVERAGE 1959 10 7,392 $2,446,464 $258,902 $354 4.2% CAPITOL HILL CAPITOL

24 COLLIERS INTERNATIONAL SEATTLE 2016 Seattle Neighborhood Apartment Market Study

Greenlake/Wallingford/Fremont Deliveries CAPITOL HILL 2016 2017 2018 2019 FUTURE Development Pipeline 2016 2017 2018 2019 FUTURE 913 582 83 0 572 Numbers within circles on map below indicates number of units in *Indicates Micro. †Indicates Possible Condo. each development.

North 88th Street Northeast 88th Street Northwest 87th Street 22nd Avenue Northwest 24 North 86th Street Northeast 86th Street Northwest 85th Street North 85th Street FUTURE LINK LIGHT RAIL WALLINGFORD/FREMONT OUR MARKET Corliss Way North Northeast 85th Street Northeast 83rd Street North 82nd Street Northwest 82nd Street 43rd Avenue Northeast GREENLAKE/ INSIGHT 70 12th Avenue Northeast Northeast 81st Place Greenlake, Wallingford and Northwest 80th Street Fremont are some of the most 15th Avenue Northeast

Northwest 77th Street 34 20th Place Northeast 15th Avenue 15th Avenue Northwest coveted neighborhoods within 20th Avenue Northwest the city. Apartment stock has North 75th Street 34 Northeast 75th Street 29th Avenue 29th Avenue Northwest 32nd Avenue 32nd Avenue Northwest increased 33% inSeaviewAvenue Northwest the last two Northeast Ravenna Boulevard

40Weedin Place Northeast 35th Avenue Northeast 31st Avenue Northeast years, yet these neighborhoods Corliss Avenue North Aurora Avenue Aurora Avenue North boast the lowest vacancyNorthwest rates 70th Street West Green Lake Drive North 45*

in Seattle with rental rates 24th Avenue Northwest 18th Avenue Northwest 130 76 Alonzo Avenue Alonzo Avenue Northwest Northwest 68th Street † North 67th Street

continuing to climb. 32 62 40th Avenue Northeast 8th Avenue 8th Avenue Northwest

10th Avenue10th Northwest 12th Avenue 12th Avenue Northwest Northwest 65th Street North 65th Street

38th Avenue Northeast 7th Avenue 7th Avenue Northwest Northwest 64th Street 3rd Avenue Northwest

83 CAPITOL HILL Northwest 62nd Street

PhinneyAvenue North 23 23rd Avenue Northeast

Leary Avenue Northwest North 58th Street 5th Avenue 5th Avenue Northwest 36thAvenue Northwest North Argyle Place East Green Lake WayNorth North 56th Street Bernie Whitebear Way Northwest Market Street Northwest 54th Street Northwest 52nd Street

Aurora Avenue NorthAvenue Aurora

BrooklynAvenue Northeast 40th Avenue Northeast West Commodore Way West Lawton Street North 50th Street Illinios Avenue

Northwest Leary Way 25th Avenue Northeast

31st Avenue West North 46th Street 30Green Lake Way North Northwest 45th Street 150 48 40* 10 Northeast 45th Street CAPITOL HILL 5th Avenue 5th Avenue Northeast

Roosevelt Way Northeast Leary Way Northwest 21st Place Northeast North 43rd Street 7th Avenue Northeast 15th Avenue 15th Avenue Northeast 20th Avenue 20th Avenue Northeast

Oregon Avenue WayTexas North 42nd Street West Emerson Place 4 Memorial Way Northeast Memorial Way

27th Place West Avenue Northeast42nd West Nickerson Street North 40th Street Ballard Bridge 100* 126 Gilman Avenue West West Emerson Street 23 22 Northeast Boat Street 28North 36th Street 279

14th Avenue West 27 37 5 Douglas Road Northeast 124 Avenue6th Northeast

11th Avenue West 45 35 Stone Way North Walla Walla Road Northeast Nickerson Street 56 North Northlake Way231 Montlake Boulevard Northeast

East Gwinn Place CAPITOL HILL West Barrett Street 77 North Pacific Street West Barrett Street East Shelby Street West approach bridge north (WABN) 28th Avenue 28th Avenue West 15th Avenue West 22nd Avenue 22nd Avenue West West Newell Street Magnolia Boulevard West Investors clearly took notice of the low vacancy rates in Greenlake/Wallingford/Fremont in 2015. A true 1950s and 1960s boutique boom took place with 10 buildings INVESTOR trading in just 12 months at nearly $260,000 per unit! This average is even more impressive when you factor in how many of these buildings are in need of substantial TIP renovations. Buyers proved they cared less about current income and more about the location of these older buildings by paying truly market-setting prices.

WWW.DYLANSIMON.COM 25 2016 Seattle Neighborhood Apartment Market Study 2015 $237,319 17.7% $334 21.9% 4.0% 20BP Ballard 2015 Sales AVG PRICE PER UNIT AVG PRICE PER SF CAP RATE AVERAGE VACANCY RENT PER SF $2.03 $201,643 $274 3.8% 2014 AVG PRICE PER UNIT AVG PRICE PER SF CAP RATE 1.6%

Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Buyer / Seller

Stratford Company Lynndale 6401 20th Avenue NW 1958 11 7,029 $1,850,000 12/31/2015 $168,182 $263 3.4% Lynndale Apartments LLC

Walls Property Management Victoria 2237 NW 59th Street 1965 6 4,172 $1,505,000 12/22/2015 $250,833 $361 3.6% R & D Robinson LLC

The Campbellina LLC 6201 11th Ave NW 6201 11th Avenue NW 1958 6 3,060 $1,215,000 11/20/2015 $202,500 $397 3.5% AIC 6201-11 LLC

6231 5th Avenue The Shrimpton LLC 6231 5th Avenue NW 1957 6 3,900 $1,550,000 11/6/2015 $258,333 $397 4.1% NW 6231 A & D LLC

Walls Property Management Arlene's 2407 59th Avenue NW 1958 6 4,523 $1,500,000 10/2/2015 $250,000 $332 3.2% Donald Fabian

Scandia Apts LLC Scandia 6202 22nd Avenue NW 1908 8 4,800 $1,842,000 9/4/2015 $230,250 $384 4.7% Scandia Apartments LLC

2216 NW 59th Dean Family NW Joint Venture LLC 2216 NW 59th Street 1970 6 4,575 $1,635,000 7/29/2015 $272,500 $357 3.6% Street Daid Yarno

Walls Property Management Heights 7522 24th Avenue NW 1967 6 5,991 $1,423,800 6/26/2015 $237,300 $238 2.9% Aylward Family LLC

Trimark Property Group Duo 8026 15th Avenue NW 2014 25 14,265 $5,970,833 6/2/2015 $238,833 $419 4.4% Goodman Real Estate

Gary Gallagher Vikingstad 2226 NW 62nd Street 1989 8 4,790 $1,860,000 5/19/2015 $232,500 $388 4.0% Sylvia Vikingstad

PBJ&K LLC Bay Vista 2616 NW 56th Street 1991 12 10,968 $3,797,000 5/15/2015 $316,417 $346 5.2% Cadence Capital

Ballard Glen LLC Ballard Heights 1507 NW 64th Street 1966 5 4,480 $1,390,000 4/8/2015 $278,000 $310 5.2% Cadence Capital

T and Z Properties LLC Market North 1145 NW 63rd Street 1967 7 6,340 $1,675,000 2/27/2015 $239,286 $264 5.3% Market North Apartments

222 NW 70th Woodland Park Properties LLC 222 NW 70th Street 1955 5 3,400 $960,000 2/24/2015 $192,000 $282 2.8% Street Yerger Properties LLC

BALLARD Sam-Sue LLC Samantha Sue 8355 16th Avenue NW 1952 7 4,867 $1,350,000 1/9/2015 $192,857 $277 4.2% Ralph Moorman

AVERAGE 1965 8 5,811 $1,968,242 $237,319 $334 4.0%

26 COLLIERS INTERNATIONAL SEATTLE 2016 Seattle Neighborhood Apartment Market Study

Ballard Development Pipeline Deliveries 2016 2017 2018 2019 FUTURE 2016 2017 2018 2019 FUTURE 367 584 63 0 373 Numbers within circles on map below indicates number of units in *Indicates Micro. †Indicates Possible Condo.

23rd Avenue Northwest each development.25th Avenue Northwest Northwest 76th Street North 76th Street Northwest 75th Street North 75th Street 53 Dibble Avenue Northwest

11th Avenue Northwest

12th Avenue Northwest

26th Avenue Northwest Northwest 74th Street Winona Avenue North OUR MARKET North 72nd Street INSIGHT Northwest 72nd Street 27th Avenue Northwest 16th Avenue 16th Avenue Northwest 24th Avenue 24th Avenue Northwest North 71st Street Jones Avenue Jones Avenue Northwest Northwest Canoe Place Ballard has shown significant Northwest 70th Street 90 resilience to new apartment Northwest Sloop Place 5th Avenue Northwest North 68th Street

Northwest 69th Street 9th Avenue Northwest 8th Avenue Northwest

10th Avenue Northwest10th 14th Avenue 14th Avenue Northwest 13th Avenue Northwest

15th Avenue Northwest15th supply during the current Mary Avenue Northwest Alonzo Avenue Alonzo Avenue Northwest

LindenAvenue North

development cycle. Since 2013, 33rd Avenue Northwest

developers doubled the stock Northwest 67th Street Woodland Place North Greenwood Avenue Greenwood Avenue North of apartment buildings (adding Avenue Northwest34th North 66th Street 1,600 units to an inventory Northwest 65th Court Northwest 65th Street North 65th Street of 1,560 units), yet vacancy Northwest 64th Street 23 rates for stabilized boutique 18 Phinney Avenue Phinney Avenue North

buildings remains below 2.0%. Northwest 63rd Street 63 AvenueSycamore Northwest The volume of development in Northwest 62nd Street 30 6th Avenue 6th Avenue Northwest

1st Avenue Northwest1st Ballard is beginning to taper, yet Northwest 61st Street 33 Palatine Avenue North an additional 1,387 units are stillNorthwest 61st Street planned. 39th Avenue West Northwest 60th Street 25 Northwest 59th Street 27 North 59th Street

2nd Avenue Northwest2nd

3rd Avenue Northwest3rd 7th Avenue 7th Avenue Northwest

32nd Avenue Northwest 74* North 57th Street West Sheridan Street Seaview Avenue Northwest 132Northwest 57th Street Shilshole Avenue84 Northwest 48 176 Leary Avenue Northwest38 106 105 Northwest Market Street Northwest 55th Street Bernie Whitebear Way Northwest 54th Street North 54th Street

Aurora Avenue NorthAvenue Aurora Northwest 54th Street Northwest 53rd Street Northwest 52nd Street West Commodore Way 91 Northwest 51st Street Texas Way Northwest 50th Street North 50th Street North 50th Street

INVESTOR Northwest Leary Way Northwest 48th Street North 48th Street Illinios Avenue West Lawton Street TIP Northwest DockNorthwest Place Ballard Way Northwest Ballard Way Northwest 47th Street 2015 was a year of small transactionsWest in Ballard,McCord Place with over half of all sales consisting of five and six unit buildings. While the Ballard apartment stock North 46th Street West Government Way Northwest 45th Street Northwest 45th Street North 45th Street Green LakeNorth Way 45th North Street has doubled, vacancy in boutique buildings remains well below 2.0% which 27th Avenue West Leary Way Northwest Discovery Parkis why Boulevard private investors areDiscovery still Park bullish Boulevard on the area. What some owners

34th Avenue West don’t realize is that investors are willing to pay a higher price31st Avenue than West ever before as this market matures into one of the strongest neighborhoods for Gilman Avenue West BALLARD apartment investments. The character of the neighborhood has attracted a North 43rd Street 24th Avenue 24th Avenue West whole new renter class and the imminence WayTexas of office development will make it one of the few 18-Hour neighborhoods in Seattle. 171

171 Winslow Place North 22nd Avenue 22nd Avenue West 23rd Avenue 23rd Avenue West 21st Avenue 21st Avenue West North 41st Street Ballard Bridge

Northwest 40th Street Stone Way North

WWW.DYLANSIMON.COM 27 2016 Seattle Neighborhood Apartment Market Study 2015 $239,786 22.7% $330 8.8% 4.2% 50BP University District 2015 Sales AVG PRICE PER UNIT AVG PRICE PER SF CAP RATE

AVERAGE VACANCY RENT PER SF $195,365 $303 3.7% $1.85 2014 AVG PRICE PER UNIT AVG PRICE PER SF CAP RATE 1.8%

UNIVERSITY DISTRICT Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Buyer / Seller

2907 NE 52nd Larch Properties 2907 NE 52nd Street 1963 11 6,600 $2,150,000 12/10/2015 $195,455 $326 3.5% Street Arkills Family LP

Ravenna 4745 Ravenna Avenue ERN LLC 1976 5 5,543 $1,840,000 10/26/2015 $368,000 $332 5.5% Townhomes NE Plus One Property

Maldiz Investments LLC 711 NE 43rd Street 711 NE 43rd Street 1928 5 3,955 $1,013,000 10/7/2015 $202,600 $256 Unavailable James C Heath

4229 11th Avenue Cx3 U-District LLC 4229 11th Ave NE 1994 5 4,039 $1,515,500 8/28/2015 $303,100 $375 4.1% NE Nelson and Polly Management

5227 Brooklyn Avenue Brooklyn West Properties LLC Lynmar 1957 16 8,246 $2,950,000 6/5/2015 $184,375 $358 4.6% NE Allawatt Homes LLC

Milestone Properties University View 5236 22nd Avenue NE 1958 33 16,776 $5,092,821 5/28/2015 $154,328 $304 4.2% Suhrco Management

4249 9th Avenue Yueh C Liu 4249 9th Avenue NE 1906 6 3,285 $1,400,000 4/6/2015 $233,333 $426 Unavailable NE Dick T Chow UNIVERSITY DISTRICT UNIVERSITY Stratford Company Silver 4134 11th Avenue NE 1926 10 8,329 $2,775,000 1/30/2015 $277,500 $333 4.4% Patricia Engberg

Cayuga LLC Burdot 5243 22nd Avenue NE 1952 6 5,450 $1,675,000 1/9/2015 $279,167 $307 4.4% LMAR LLC

AVERAGE 1951 10 6,914 $2,267,925 $244,206 $335 4.4% ROOSEVELT Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Buyer / Seller CAPITOL HILL CAPITOL North Towne InCity Properties 858 NE 67th Street 1958 30 21,549 $6,000,000 9/30/2015 $200,000 $278 3.0% Manor Sunti Achara & Tiparat Chaichittananond

AVERAGE 1958 30 21,549 $6,000,000 $200,000 $278 3.0%

As the Light rail station nears completion, our team predicts that the Roosevelt boutique apartment sales market will experience more growth than any neighborhood in the next INVESTOR few years. Roosevelt is truly becoming a “Main & Main” location, boasting great transit, retail and walkable amenities. If you own an apartment in this market, please call us for a TIP valuation so you can take advantage of the rapid value growth this market is soon to experience. CAPITOL HILL CAPITOL

28 COLLIERS INTERNATIONAL SEATTLE 2016 Seattle Neighborhood Apartment Market Study

Deliveries University District Northeast 76th Street North 75th Street Northeast Park Place2016 2017 2018 2019 FUTURE Northeast2016 75th Street2017 2018 2019 FUTURE Northeast 75th Street Development Pipeline 20th Place Northeast Northeast 74th Street 683Northeast 73rd1,134 Street 110 0 1,571 28th Avenue Northeast Northeast 73rd Place Northeast 73rd Street Numbers within circles32nd Avenue Northeast on map below indicates number of units in Northeast 73rd Street each development. *IndicatesNortheast Micro. 72nd †IndicatesStreet Possible Condo.

Northeast Maple Leaf Place Northeast 70th Street Northeast 71st Street

12th Avenue Northeast Northeast 70th Street Northeast 70th Street Northeast Maple Leaf Place Northeast 71st Street Ravenna Avenue Northeast

18th Avenue Northeast

16th Avenue Northeast 17th Avenue Northeast Northeast 70th Street Northeast 70th Street Northeast Ravenna Boulevard

ROOSEVELT Sportsfield Drive North 66th Street 76

OUR MARKET 5th Avenue Northeast Northeast 69th Street INSIGHT 98 Weedin Place Northeast 52nd Avenue Northeast

The great majority of 75 Northeast5th Avenue Northeast 65th Street Northeast 68th Street Northeast 65th Street

Northeast Ravenna Boulevard 260 19th Avenue Northeast 20th Avenue Northeast 20 79 23rd Avenue Northeast North 64th Streetdevelopment in the University North 66th Street District is occurring on a small Woodlawn Avenue Northeast Northeast 67th Street 12th Avenue Northeast

1stAvenue Northeast North scale,62nd Street with building sizes SunnysideAvenue North FUTURE LINK LIGHT RAIL Kirkwood Place North predominantly ranging from Roosevelt Way Northeast Northeast 66th Street 220 250 Northeast 20061st Street 20 units to 100 units. Larger 40 North 65th Street North 65th Street 110 Northeast 60th Street development sites are beginning Northeast 65th Street

22nd Avenue 22nd Avenue Northeast Northeast Tulane Place

PrincetonAvenue Northeast 41

to emerge, especiallyAvenue Northeast4th in the North 64th Street 22nd Avenue Northeast North 64th Street Northeast 64th Street Oswego Place Northeast

99 40th Avenue Northeast Roosevelt neighborhood – which Northeast Naomi Place

is certainly taking shape as its 9th Avenue Northeast Northeast 56th Street 51* North 63rd Street UNIVERSITY DISTRICT own submarket. Light rail making

30th Avenue 30th Avenue Northeast Avenue Northeast34th 36th Avenue Northeast

North Clogston Way 26th Avenue Northeast Northeast 63rd Street its way through the University 70 North 62nd Street Northeast Penrith Road District and into the Roosevelt 28 Northeast 62nd Street

Brooklyn AvenueBrooklyn Northeast neighborhood helps define the 21st Avenue Northeast North 52nd Street Northeast 61st Street 35 Woodlawn Avenue North 8thAvenue Northeast 128* underpinnings of the desirability 40 Keystone Place North

6th Avenue NortheastAvenue 6th

4th Avenue4th Northeast

of these markets in the long- Northeast 60th Street 25th Avenue Northeast 26th Avenue Northeast North 50th Street 20th Avenue Northeast Northeast 50th Street

term. 115 Northeast University Way Northeast 59th Street 35* 11th Avenue Northeast

MeridianAvenue North

CorlissAvenue North

Sand Point Way Northeast 28th Avenue Northeast Green Lake Way North 60 Northeast 58th Street Northeast 47th Street Cowen Place Northeast 66 Kensington Place North Deliveries 89 Kenwood Place North Kirkwood Place North 168 40 242 Northeast Park Road 28 20 60 Northeast 57th Street 27th Avenue Northeast 5th Avenue 5th Avenue Northeast 2016 2017 2018 2019 FUTURE

North 45th Street 25th Avenue Northeast 202 Roosevelt Northeast Way Northeast 45th Street 20 Northeast 44th Street 7th Avenue7th Northeast Northeast 56th Street Northeast 56th Street 12th Avenue 12th Avenue Northeast

47 280 549 110 NortheastAvenue Brooklyn 0 485 CAPITOL HILL

15th Avenue NortheastAvenue 15th * 20th Avenue Northeast North 43rd Street 20 Northeast 43rd Street 98 23 Northeast 41st Street

Northeast 42nd Street Northeast Memorial Way 37 Northeast 38th Street 208

North 39th Street Northeast Northlake Way Northeast 36th Street

Northeast Pacific Street Douglas Road Northeast Northeast 33rd Street Wallingford Avenue Avenue Wallingford North

Walla Walla Road Northeast CAPITOL HILL

Montlake Boulevard Northeast

Stone Way North North 35th Street North Northlake Way

WWW.DYLANSIMON.COM 29 2016 Seattle Neighborhood Apartment Market Study 2015 $210,672 20.0% $268 8.8% 3.9% 70BP West Seattle 2015 Sales AVG PRICE PER UNIT AVG PRICE PER SF CAP RATE

AVERAGE VACANCY RENT PER SF $175,617 $247 4.6% $1.67 2014 AVG PRICE PER UNIT AVG PRICE PER SF CAP RATE 3.0%

Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Buyer / Seller

Halcyon 7060 Lincoln Park Way Hoyt Street Properties 1968 23 18,244 $5,446,400 12/1/2015 $236,800 $299 Unavailable Apartments Sw HIT Wealth LLC

Harbor Jason Kono - The Foundation Group 2371 Harbor Avenue SW 2011 7 12,580 $2,773,500 12/28/2015 $396,214 $220 3.3% Townhomes Peter Zlotnick

LZ Center LLC Hamilton 3040 SW Avalon Way 1978 6 2,871 $880,000 12/4/2015 $146,667 $307 3.9% Randall Newell

2301 California Avenue West 206 Alliance Investments LLC West 206 1988 38 26,052 $8,475,000 11/2/2015 $223,026 $325 4.8% SW Security Properties

7317 Bainbridge Place 0330 LLC Lincoln Park Court 1957 5 3,200 $750,000 10/14/2015 $150,000 $234 4.1% SW William M Gain

Mr Shine Properties LLC Palm 6511 35th Avenue SW 1958 10 6,000 $1,127,500 8/14/2015 $112,750 $188 4.8% Blue Fern Residential

Sharon Lynn 5200 Fauntleroy Way First Commercial Property 1956 13 8,974 $1,948,700 7/31/2015 $149,900 $217 3.3% Apartments SW Sharon Enga Living Trust

6332 42nd Ave Jo-Elaine Akemi Matsumoto 6332 42nd Avenue SW 1978 5 3,222 $760,000 5/21/2015 $152,000 $236 4.0% SW Karen & James Kempton

3306 Beach Dr Plus One Properties 3306 Beach Drive SW 1991 7 7,002 $2,515,000 5/15/2015 $359,286 $359 2.7% SW Brown Family Trust

Beachwood Investments LLC Beachwood 4027 Beach Drive SW 1901 10 9,506 $2,965,000 4/15/2015 $296,500 $312 3.5% Beachwood West LLC

Avalon West Partners LLC Avalon West 3250 SW Avalon Way 1991 26 18,644 $5,380,000 3/26/2015 $206,923 $289 3.9% 3250 LLC WEST SEATTLE WEST

Seacliff Westside II LLC Westside II 3236 SW Avalon Way 1991 26 18,639 $5,246,150 3/11/2015 $201,775 $281 3.9% 3236 LLC

4857 Fauntleroy Way The McKay Apartments LLC Dorchester 1957 12 6,600 $1,598,800 2/23/2015 $133,233 $242 4.4% SW Dorchester Apartments LLC

4830 California Avenue John Soudas Skylark 1922 7 7,627 $1,750,000 1/6/2015 $250,000 $229 4.3% SW Skylark Apartments LLC

7010 California Avenue Lime Hill Properties LLC Cal-Aire 1958 6 3,040 $870,000 1/5/2015 $145,000 $286 Unavailable CAPITOL HILL CAPITOL SW Thomas Patrick & Patricia Henry

AVERAGE 1967 13 10,147 $2,832,403 $210,672 $268 3.9%

30 COLLIERS INTERNATIONAL SEATTLE 2016 Seattle Neighborhood Apartment Market Study

West Seattle Development Pipeline Deliveries 2016 2017 2018 2019 FUTURE 2016 2017 2018 2019 FUTURE 496 581 103 0 1,290 Numbers within circles on map below indicates number of units in *Indicates Micro. †Indicates Possible Condo. each development.

Harbor8 Avenue Southwest Edgar Martinez Drive South

South Massachusetts Street

South Holgate Street 14th Avenue South 23rd Avenue 23rd Avenue South

Alki Avenue Southwest SturgusAvenue South

Southwest Admiral Way

Utah AvenueUtah South South Stacy Street 150 South Waite Street

19 Southwest Lander Street South East Marginal Way South Lander Street

Southwest Admiral Way 26th Avenue Southwest

Rainier Avenue South South Forest Street South Forest Street 200

46thAvenue Southwest

58thAvenue Southwest 67 South Hanford Street 31st Avenue South 136 46

55th Avenue Southwest

Beacon Avenue South Southwest Spokane Street Swing Bridge South Spokane Street

63rdAvenue Southwest

59th Avenue 59th Avenue Southwest 105 27

23rdAvenue South

61stAvenue Southwest

49th Avenue49th Southwest 29 Lafayette Avenue Lafayette Avenue South

40th Avenue 40th Avenue Southwest 37th Avenue Southwest South Industrial Way Glenn Way Southwest

24thAvenue South Southwest Dakota Street OUR MARKET15thAvenue South 108 30 20* 102 INSIGHT

Fauntleroy Way Southwest Southwest Idaho Street West Seattle came out of the 25thAvenue South

53rd Avenue53rd Southwest

80 42nd Avenue Southwest 40 60 159Avenue35th Southwest WA 99 gates early and voraciously in the South Columbian Way 58 54 2nd Avenue South 52nd Avenue52nd Southwest 38 75 current development cycle. From Beach Drive Southwest 123 Southwest Dawson Street 2011 – 2015 over 1,600 units 389 WEST SEATTLE were deliveredAirport Way inSouth West Seattle – 28 100 1st Avenue South increasing apartment inventory West Marginal Way Southwest by 63%.Avenue4th South The development community took notice and construction plans began to South Lucile Street 80 taper over the last 24 months. 29th Avenue South Expect interest in West Seattle South Mead Street developments to soon rise again South Orcas Street

Fauntleroy Way Southwest

15th Avenue15th South

17th Avenue17th South 20 as the market continues to Avenue20th South 89 absorb units while rental rates Swift Avenue South increase and vacancy remains South Graham Street Eastlow Marginal (currently Way South 3.0%).South Hardy Street

Delridge Way Southwest

CaliforniaAvenue Southwest

26th Avenue Southwest26th CAPITOL HILL

48th Avenue48th Southwest Perimeter Road South 3030 Avenue Southwest16th

50th Avenue50th Southwest Southwest Mills Street Highland Park Way Southwest

22ndAvenue Southwest

18th Avenue Southwest18th

35th Avenue35th Southwest West Seattle’s boutique sales metrics are not quite on pace with otherAvenue33rd Southwest core neighborhoods.Southwest MyrtleThe reason Street for this is a large stock of older apartments receiving well below

38th Avenue Southwest38th INVESTOR market rental rates. With another explosion of development set for 2016 and 2017, this is aSouthwest great neighborhood Othello Street to invest. While some rehab may be necessary, the Ellis Avenue South TIP name of the game is efficient management allowing you to increase rental rates while drafting off of high rental rates of new developments. Covello Drive South

WWW.DYLANSIMON.COM 31 2016 Seattle Neighborhood Apartment Market Study 2015 $198,473 0% $328 16.6% 4.9% 40BP First Hill/Yesler Terrace AVG PRICE PER UNIT AVG PRICE PER SF CAP RATE

AVERAGE VACANCY RENT 2015 Sales PER SF $198,804 $393 4.5% $2.10 2014 AVG PRICE PER UNIT AVG PRICE PER SF CAP RATE CAPITOL HILL CAPITOL 1.9%

Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Buyer / Seller

423 Terry Partners LLC Broadmore 423 Terry Avenue 1911 33 31,200 $9,150,000 11/2/2015 $277,273 $293 4.1% Cadence Capital

Collin, Jillian & Curran Hagstrom/Giovanni & Cheryle Napoli Envoy 821 9th Avenue 1925 44 14,520 $5,265,600 4/17/2015 $119,673 $363 5.6% Richard Barsotti

AVERAGE 1918 39 22,860 $7,207,800 $198,473 $328 4.9% CAPITOL HILL CAPITOL

2015 $327,617 108% $517 76.0% 5.1% 10BP Belltown 2015 Sales AVERAGE AVG PRICE PER UNIT AVG PRICE PER SF CAP RATE RENT PER SF VACANCY

$2.28 $157,180 $294 5.2% 2014 AVG PRICE PER UNIT AVG PRICE PER SF CAP RATE 3.6% CAPITOL HILL CAPITOL

Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Buyer / Seller

SARES-REGIS Group N-Habit Belltown 2217 3rd Avenue 2014 49 31,058 $16,053,225 9/30/2015 $327,617 $517 5.1% Daly Partners

AVERAGE 2014 49 31,058 $16,053,225 $327,617 $517 5.1%

OUR MARKET INSIGHTS TRANSIT UPDATE FIRST HILL/BELLTOWN FIRST In 2016, the First Hill Streetcar—with its Broadway Extension - will » The FIRST HILL market was one of the few markets that realized a price reduction on per unit and square foot basis in 2015. begin service. This light-rail line will connect Seattle’s Waterfront The lack of price escalation was likely due to low transaction volume. The few trades included apartments in need of substantial with the Pioneer Square and Yesler Terrace neighborhoods— renovations to reach competitive market rental rates, illustrating lower purchase prices. continuing to the Light Rail Station in Capitol Hill. » BELLTOWN’S zoning and waterfront location provides an ideal opportunity for high-rise development. This is also why there are very few small building sales. Existing vintage building sales will likely result in redevelopment when they are sold. CAPITOL HILL CAPITOL

32 COLLIERS INTERNATIONAL SEATTLE 2016 Seattle Neighborhood Apartment Market Study

First Hill/Belltown Deliveries CAPITOL HILL 2016 2017 2018 2019 FUTURE Development Pipeline 2016 2017 2018 2019 FUTURE 827 870 3,495 0 3,195 Numbers within circles on map below indicates number of units in each development. *Indicates Micro. †Indicates Possible Condo.

East Boulevard Westlake Avenue North Raye Street st 8th Avenue Nagle Place Terry Avenue Smith Street FIRST HILL East Olive Street CAPITOL HILL

Belmont Avenue

15th Avenue enue We Bell Street

OUR MARKET 11th Avenue Av Battery Street Olive Way East Pine Street East Pine Street Eastlake AvenueEastlake East 9th Avenue East Madison Street INSIGHT 15th As two of only five submarkets Lenora Street

Westlake Avenue st * FUTURE LINK LIGHT RAIL 90 East Pike Street with zoning that permits high- 4th Avenue Stewart Street 60 East Pike Street 7th Avenue MelroseAvenue Magnolia Bridge Summit Avenue Bellevue Avenue

11th Avenue

rise development, developers are enue East enue We Av Av planning a significant number of QueenAnneAvenue North East Union Street Aurora AvenueAurora North Boren Avenue East Union Street East Union Street

10th Avenue East

19th Avenue19th Elliott Avenue West 24th high-rise apartment buildings 23rd Blanchard Street Pike Street Terry Avenue 8th Avenue across Belltown and First Hill. Fairview Avenue North enue North

Elliott Avenue Av † 32ndAvenue Long-awaited Yesler Terrace 17th Avenue 6th Avenue 215 265 Virginia Street will begin to take shape in 2016, Roy Street Valley Street Dexter

20th Avenue20th 5th Avenue Broadway Court

Stewart Street Avenue21st

22ndAvenue FIRST HILL STREETCAR

anchoring the southern end of Pike Place Pine Street CAPITOL HILL Alaskan Way enue North

24th Avenue24th Av First Hill and further connecting Avenue 23rd 3rd Avenue Madison Street enue North Harrison Street 207 Western Avenue West Hubbell Place SR-99 NB Av

the Central District with Yale

5th East Columbia Street enue North Downtown and South Downtown. 1st Avenue 100 12th Avenue Av

Denny Way Broadway East East Denny Way 23rdAvenue East

9th 2nd Avenue Pine Street Spring Street Marion275 Street

Temple Place 200 Broadway East Cherry Street East Cherry Street Western Avenue University Street Avenue34th Belltown Olive Way East Pine Street 7th Avenue East Madison Street Columbia Street Elliott Avenue East James Street 8th287 Avenue Broadway

4th Avenue Seneca Street 25th Avenue

19th Avenue 74 East Jefferson Street 27th Avenue East Jefferson Street 2nd Avenue 338 First 7th Avenue 34thAvenue

23rd Avenue 23rd East Harrison Street FIRST HILL/BELLTOWN 83* BELLTOWN Alaskan Way Marion Street East Cherry Street 329 East Terrace Street 10th Avenue 150 Columbia Street 9th Avenue 400 Martin Luther King Junior Way East Thomas Street Hill Avenue 26th Madison Street East Alder Street AlaskanMadison Way Street Avenue 14th

14th Avenue East 13th Avenue East 100 Elliott Avenue West Belmont Avenue East James Street Seattle Seattle Seattle James Street East Spruce Street Colman Dock East John Street 100 † Yesler Way2nd Avenue Extension South Broad Street 400Broadway East 1st Avenue 1st Avenue North Center 372 WA 305 East John Street 32nd Avenue

2nd Avenue2nd North

Jefferson Street 200 East Fir Street 27th Avenue South Taylor Avenue 6th Avenue 6th Avenue North

9th Avenue Avenue North 9th 8th Avenue 8th Avenue North Spruce194 Street † South Jackson Street 106 Pontius Avenue Pontius Avenue North

310 300 Fairview Avenue North

Queen Anne Avenue NorthAnneQueen WA 304

East Denny Way 29th Avenue 110 East Denny Way Avenue 28th Denny Way Minor Avenue Yesler Way 200 East Yesler Way East Yesler Way Avenue 30th

East Denny Way Martin Luther King Junior Way Stewart Street

Belmont Avenue

Harvard Avenue Terry Avenue 23rd Avenue South Terry Avenue Avenue North Terry 200 Boylston Avenue Boylston Avenue East Bay Street California Avenue Warren North Way Southwest

Westlake Avenue WestlakeNorth Rainier Avenue South South Washington Street 5thAvenue South 9th Avenue South

Elliott Avenue 339 Dexter Avenue East Howell Street

Western Avenue SouthAlaskan Way

4th Avenue South Boren Avenue South 4th Avenue 4th Avenue South

Wall Street 24th Avenue South 31st Avenue South

14th Avenue 14th Avenue South Avenue15th South

8th Avenue South Westlake Avenue South Main Street 63 Boylston Avenue 200 Aurora Avenue

Cedar Street Nagle Place South Jackson Street East Olive Way Deliveries East Olive Street South Jackson Street Alki Avenue Southwest 394 Bell Street South JacksonCAPITOL HILL Place

22nd Avenue22nd South

8th Avenue Summit Avenue 384 Avenue6th South 2016 2017 2018 2019 FUTURE 433Battery Street South King Street 1st Avenue South Avenue 1st Olive WayAvenue South South Holgate Street East Pine Street

7th Avenue7th South 10th Avenue 10th Avenue South 12th Avenue South

Alaskan South Way

23rd

25th Avenue25th South Vine Street 275 406 1,953 0 South1,106 Weller Street Avenue26th South 31stAvenue South Deliveries 314 Bell Street Maynard Avenue South Clay Street 152 150 Howell Street East Pike Street 2016 2017 2018 2019 FUTURE 7th Avenue Avenue Melrose Pine Street Avenue Bellevue Battery Street 196 Vine Street 97 552 464 1,542 0 2,089 Elliott Avenue East Union Street Boren Avenue East Union Street Blanchard Street Virginia Street Terry Avenue WWW.DYLANSIMON.COM 33 Lenora Street

Elliott Avenue Pike Street East Spring Street 6th Avenue

8th Avenue Stewart Street 5th Avenue 9th Avenue East Madison Street 4th Avenue Alaskan Way 3rd Avenue Spring Street

7th Avenue 12th Avenue 1st Avenue Marion Street

Pine Street 2nd Avenue Broadway East Cherry Street Western Avenue University Street 8th Avenue Columbia Street East James Court East James Way East Barclay Court

Seneca Street Madison Street East Jefferson Street

Spring Street

Marion Street

Columbia Street 9th Avenue Madison Street James Street East Alder Street Seattle

Alder Street East Spruce Street 2016 Seattle Neighborhood Apartment Market Study 2015 $163,124 18.7% $231 -9.8% 5.0% 10BP Central District/Beacon Hill/ AVG PRICE PER UNIT AVG PRICE PER SF CAP RATE

AVERAGE VACANCY RENT Rainier Valley PER SF $137,376 $256 5.1% $1.86 2014 AVG PRICE PER UNIT AVG PRICE PER SF CAP RATE 2015 Sales 1.5% CENTRAL DISTRICT/

Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Buyer / Seller BEACON HILL/RAINIER VALL. HILL/RAINIER BEACON

Falcon Properties LLC Beacon Hill 1308 12th Avenue S 1986 13 10,275 $2,075,000 12/31/2015 $159,615 $202 5.5% Walford Eng etal

3315 Claremont 3315 Claremont Avenue Jerry and Pamela Kincanon 1992 5 4,294 $600,000 12/17/2015 $120,000 $140 Unavailable Avenue S S Linh Phan

Hon's Investment Group, Inc. Emerald View 2011 13th Avenue S 1989 6 5,813 $1,890,000 10/21/2015 $315,000 $325 4.0% KTJC Investments LLC CAPITOL HILL CAPITOL Synergy Investments Madison Vista 114 24th Avenue E 1910 47 22,054 $6,745,300 9/24/2015 $143,517 $306 5.1% Gibraltar Investments

Trimark Property Group Cranmore 3301 Beacon Avenue S 1915 22 12,602 $4,789,000 9/15/2015 $217,682 $380 6.2% Cranmore Apartments LLC

DSB Investments Estelle 3430 Rainier Avenue S 1960 16 9,081 $1,260,000 9/2/2015 $78,750 $139 5.5% Thang Van Tran

Charlemagne Seattle Investors LLC Charlemagne 1300 14th Avenue S 1965 14 8,010 $1,944,950 8/21/2015 $138,925 $243 4.3% Stephen Gouge CAPITOL HILL CAPITOL

Rainier Condos Charles Street 6511 Rainier Avenue S 1968 13 8,892 $975,000 7/29/2015 $75,000 $110 3.5% Louie Investments LP

1400 E Spruce Donald & Genita Wea 1400 E Spruce Street 1965 5 3,700 $960,000 7/24/2015 $192,000 $259 4.0% Street Catholic Community Services

Walker Management & Services Raleigh Ridge 411 10th Avenue 1996 16 13,780 $3,848,000 7/10/2015 $240,500 $279 4.1% Raleigh LLC

Srhd LLC 1757 20th Ave S 1757 20th Avenue S 1919 10 6,882 $950,000 6/8/2015 $95,000 $138 Unavailable Michael E Wagner CAPITOL HILL CAPITOL McKay Investment Properties 1425 22nd Avenue 1425 22nd Avenue 1906 8 5,850 $1,470,000 5/27/2015 $183,750 $251 5.5% Endach Girma

Morgan Ione Holdings LLC Ione Court 1604 E Spring Street 1950 10 6,344 $2,425,000 5/20/2015 $242,500 $382 4.6% Weerawan Sakchalarthorn

Hamilton Urban Partners Columbia Arms 4700 35th Avenue S 1958 14 11,630 $2,214,250 4/27/2015 $158,161 $190 5.1% Ilya Gamel

2414 13th Avenue Beacon View Properties LLC 2414 13th Avenue S 1968 15 11,200 $1,297,000 3/3/2015 $86,467 $116 7.0% S 2414 13th Ave S Apartments LLC CAPITOL HILL CAPITOL AVERAGE 1956 14 9,360 $2,229,567 $163,124 $231 5.0%

34 COLLIERS INTERNATIONAL SEATTLE Mercer Street Northeast 16th Street

Elliott Avenue Northeast 12th Street

Northeast 10th Street Northeast 10th Place Madrona Drive Denny Way

Northeast 8th Street Overlake Drive West Northeast 6th Place Vine Street 23rd Avenue Bellevue

8th Avenue Summit Avenue 15th Avenue Northeast 2nd Street 19th Avenue Broadway

Alaskan Way Main Street 12th Avenue Mercer Street 17th Avenue Main Street Northeast 16th Street Mercer Street Northeast 16th Street

Southeast 2nd Street

Elliott Avenue Northeast 12th Street Elliott Avenue 34th Avenue Northeast 12th Street Southeast 7th Street Seattle Northeast Place Temple 10th Street Northeast 10th Place Madrona Drive Denny Way 123rd Avenue Southeast

25th Avenue Erie Avenue Northeast 10th Place 102nd Avenue 102nd Avenue Southeast

14th Avenue Northeast 10th Street BEACON HILL/RAINIER VALL. Madrona Drive Northeast 8th Street Denny Way 2016 Seattle Neighborhood Apartment Market Study Overlake Drive West Northeast 6th Place Vine Street South Jackson Street CENTRAL DISTRICT/ 30th Avenue Bellevue Way Southeast Bellevue Way

23rd Avenue Northeast 8th Street Overlake Drive West 4th Avenue South Northeast 6th Place BellevueDeliveries Southeast 16th Street

Summit Avenue Central District/Beacon Hill/Rainier 8th Avenue Vine Street 15th Avenue Northeast 2nd Street

19th Avenue Harbor Avenue Southwest Broadway

2016 2017 2018 2019 23rd Avenue FUTURE

Alaskan Way Main Street 12th Avenue 17th Avenue 2016 2017 2018 2019 FUTURE Valley Development Pipeline Main Street South Wadsworth Place 559 1,776 533 121 1,411 Bellevue

8th Avenue Summit Avenue Southeast 2nd Street Numbers within circles on map below indicates number of units in 15th Avenue Northeast 2nd Street

*Indicates Micro. †Indicates Possible Condo. West Mercer Way each development. 19th Avenue 112th Avenue Southeast Broadway 34th Avenue Alaskan Way Main Street

118th Avenue Southeast 118th 12th Avenue Mercer Street 17th Avenue Northeast 16th Street Main Street 148th Avenue 148th Avenue Southeast Southeast 7th Street Seattle Place Temple 12th Avenue 12th Avenue South

Elliott Avenue 123rd Avenue Southeast Northeast 12th Street Southeast 29th Street Alaskan Way South

25th Avenue Erie Avenue Southeast 2nd Street 102nd Avenue 102nd Avenue Southeast Southeast 30th Street 14th Avenue Northeast 10th Place Madrona Drive Northeast36thAvenue South 10th Street 42nd Avenue Southwest Denny Way CENTRAL DISTRICT INVESTOR Northeast 8th Street 156th Avenue Southeast

Overlake Drive West Northeast 6th Place 132nd Avenue Southeast South Jackson Street Vine Street 32 CAPITOL HILL 30th Avenue

23rd Avenue South Waite Street Bellevue Way Southeast Bellevue Way 6th Avenue 6th Avenue South TIP 154thAvenue Southeast Bellevue Summit Avenue

8th Avenue 15th Avenue

Northeast 2nd Street 34th Avenue 19th Avenue Broadway 85 4th Avenue South Investors that bought in these Mercer Island 12th Avenue Alaskan Way 17th Avenue 75 Main Street Main Street Southeast 16th Street neighborhoods will be generously 68 Southeast 7th Street 26th Avenue 26th Avenue Southwest Seattle 400 25 Southeast 2nd Street Place Temple Harbor Avenue Southwest Southeast 40th Street 123rd Avenue Southeast rewarded in years to come. As 13th Avenue Southwest

34th Avenue Southeast 40th Street rental rates47th Avenue Southwest and sales prices in the 93* 161* Southeast 41st Street 25th Avenue Temple Place Temple Beacon Avenue South Southeast 7th Street Erie Avenue 102nd Avenue 102nd Avenue Southeast

14th Avenue 123rd Avenue Southeast

South Wadsworth Place core of Seattle continue to grow, Seattle 25th Avenue 102nd Avenue 102nd Avenue Southeast

14th Avenue Erie Avenue renters are being forced to move Southwestto Spokane Street Swing Bridge Central 3rd Avenue South Gallagher Hill Rd

South Jackson Street 30th Avenue Bellevue Way Southeast Bellevue Way more affordable markets. Light rail’s District South Jackson Street West Mercer Way 60

4th Avenue South Southeast30th Avenue 16th Street Bellevue Way Southeast Bellevue Way connection to downtown makes these 112th Avenue Southeast Harbor Avenue Southwest 37th Avenue 37th Avenue Southwest Maple Lane neighborhoods a perfect fit for renter Avenue Southeast 118th demand near the core, yet with more South Wadsworth Place 148th Avenue Southeast 40th Avenue 40th Avenue Southwest 12th Avenue 12th Avenue South 4th Avenue South 70 150 Southeast 16th Street West Mercer Way CAPITOL HILL affordable rates. With rental rates still Southeast 29th Street 160 23 164thAvenue Southeast Alaskan Way South 112th Avenue Southeast

9thAvenue South Southeast 30th Street

118th Avenue Southeast 118th at a substantial discount36thAvenue South to the core 148th Avenue 148th Avenue Southeast 42nd Avenue Southwest 26 Southeast 47th Street WA 99 48th Avenue 48th Avenue South

156th Avenue Southeast West Marginal Way Southwest 12th Avenue 12th Avenue South 31st Avenue 31st Avenue South andHarbor Avenuenew Southwest developments improving 24th Place South 33* Alaskan Way South Southeast 29th Street 132nd Avenue 132nd Avenue Southeast

196 36thAvenue South Southeast 30th Street

42nd Avenue Southwest

156th Avenue Southeast Southeast 47th Place

129th Avenue Southeast South Columbian Way

these neighborhoods, we predict 41st Avenue South South Waite Street 38th Avenue South 132nd Avenue 132nd Avenue Southeast 6th Avenue 6th Avenue South

154thAvenue Southeast

Martin Luther King Junior Way South

6th Avenue 6th Avenue South South Waite Street ample future rental rate growth. 47 154thAvenue Southeast Mercer Island South Hudson Street South Wadsworth Place 21st Avenue Southwest 111 Mercer IslandSouth Pearl Street 26th Avenue 26th Avenue Southwest 1st Avenue 1st Avenue South South Farrar Street

13th Avenue 13th Avenue Southwest 60 Southeast 40th Street 26th Avenue 26th Avenue Southwest

Southeast 40th Street 132nd Avenue Southeast 47th Avenue Southwest Southeast 41st Street Beacon Avenue South Southeast 40th Street 13th Avenue 13th Avenue Southwest South Lucile Street

3rd Avenue 3rd Avenue South Gallagher Hill Rd Southwest Spokane Street Swing Bridge Southeast 40th Street West Mercer Way 47th Avenue Southwest 73 Southeast 41st Street Beacon Avenue South South Orcas Street 112th Avenue Southeast

37th Avenue 37th Avenue Southwest Maple Lane Road D

3rd Avenue 3rd Avenue South Gallagher Hill Rd

Southwest Spokane Street Swing Bridge Avenue Southeast 118th Delridge Way Southwest Delridge Way

40th Avenue 40th Avenue Southwest 106th Avenue Southeast 148th Avenue 148th Avenue Southeast OTHELLO STATION/COLUMBIARainier Avenue South CITY 164thAvenue Southeast 44th Avenue 44th Avenue Southwest

Island Crest Way

9thAvenue South CAPITOL HILL WA 99 48th Avenue 48th Avenue South Southeast 47th Street West Marginal Way Southwest 31st Avenue 31st Avenue South 12th Avenue 12th Avenue South

24th Place South 30 RainierOhioAvenue South South Graham Street Airport Way South

129th Avenue Southeast South Columbian Way 41st Avenue 41st Avenue South Southeast 47th Place 38th Avenue 38th Avenue South Southeast 29th Street

Martin Luther King Junior Way South

37th Avenue 37th Avenue Southwest Valley Alaskan Way South South Street Maple Lane 27 21st Avenue Southwest South Pearl Street South Hudson Street Southeast 30th Street

36thAvenue South

RAINIER VALLEY 1st Avenue South 42nd Avenue Southwest SouthEast Farrar Marginal Way StreetSouth 132nd Avenue 132nd Avenue Southeast

156th Avenue Southeast 40th Avenue 40th Avenue Southwest South Lucile Street Southeast 68th Street 26th Avenue 26th Avenue Southwest

164thAvenue Southeast

149 Newcastle Golf Club Road 132nd Avenue Southeast

16th Avenue16th Southwest South Orcas Street 9thAvenue South 100 26 150 Southeast 47th Street Road D WA 99 Delridge Way Southwest Delridge Way 48th Avenue 48th Avenue South South Waite106th Avenue SoutheastStreet West Marginal Way Southwest 98 34thAvenue Southwest 31st Avenue 31st Avenue South

44th Avenue 44th Avenue Southwest Rainier Avenue South 6th Avenue 6th Avenue South 24th Place South 27 174

Island Crest Way 177 Southeast 72nd Place 154thAvenue Southeast OhioAvenue South Southwest Othello Street South Graham Street 242 Airport Way South Southeast 47th Place

129th Avenue Southeast South Columbian Way

244 41st Avenue South 38th Avenue 38th Avenue South

South Michigan Street 59 433 Avenue 116th Southeast

Martin Luther King Junior Way South 35 East Marginal Way South Mercer Island Southwest155 Ida Street Southeast 68th Street South Holden Street 50

26th Avenue 26th Avenue Southwest Ridgecrest Lane South Hudson Street 16th Avenue16th Southwest Newcastle Golf Club Road 21st Avenue Southwest South Pearl Street

34thAvenue Southwest 121 Coal Creek Parkway Southeast 26th Avenue 26th Avenue Southwest South Kenyon Street Seahawks Way 1st Avenue 1st Avenue South Othello Station Southeast 72nd Place † Southwest Othello StreetSouth Farrar Street 67 68 CAPITOL HILL 132nd Avenue 132nd Avenue Southeast 20 Columbia City Avenue 116th Southeast Southeast 40th Street Southwest Ida Street 13th Avenue Southwest South Lucile Street South Holden Street Ridgecrest Lane Southeast 40th Street

47th Avenue Southwest South Kenyon Street Seahawks Way Coal Creek Parkway Southeast Southeast 41st Street

Beacon Avenue South South Orcas Street

Road D

3rd Avenue 3rd Avenue South Gallagher Hill Rd

Delridge Way Southwest Delridge Way Southwest Spokane Street Swing Bridge 106th Avenue Southeast

Rainier Avenue South 44th Avenue 44th Avenue Southwest

Island Crest Way

OhioAvenue South South Graham Street Airport Way South South Michigan Street WWW.DYLANSIMON.COM 35 37th Avenue 37th Avenue Southwest East Marginal Way South Maple Lane Southeast 68th Street 26th Avenue 26th Avenue Southwest Newcastle Golf Club Road 40th Avenue 40th Avenue Southwest

16th Avenue16th Southwest

164thAvenue Southeast 34thAvenue Southwest Southeast 72nd Place Southwest Othello Street 9thAvenue South Southeast 47th Street WA 99

116th Avenue 116th Southeast 48th Avenue 48th Avenue South

West Marginal Way Southwest 31st Avenue 31st Avenue South

24th Place South Southwest Ida Street South Holden Street Ridgecrest Lane Southeast 47th Place

129th Avenue Southeast South Columbian Way 41st Avenue 41st Avenue South 38th Avenue 38th Avenue South South Kenyon Street Seahawks Way Coal Creek Parkway Southeast

Martin Luther King Junior Way South

South Hudson Street 21st Avenue Southwest South Pearl Street

1st Avenue 1st Avenue South South Farrar Street 132nd Avenue 132nd Avenue Southeast

South Lucile Street

South Orcas Street

Road D

Delridge Way Southwest Delridge Way 106th Avenue Southeast

Rainier Avenue South 44th Avenue 44th Avenue Southwest

Island Crest Way

OhioAvenue South South Graham Street Airport Way South

South Michigan Street

East Marginal Way South Southeast 68th Street 26th Avenue 26th Avenue Southwest Newcastle Golf Club Road

16th Avenue16th Southwest

34thAvenue Southwest Southeast 72nd Place Southwest Othello Street

116th Avenue 116th Southeast

Southwest Ida Street South Holden Street Ridgecrest Lane

South Kenyon Street Seahawks Way Coal Creek Parkway Southeast 2016 Seattle Neighborhood Apartment Market Study 2015 $289,060 32.8% $352 23.4% 3.6% 140BP West Bellevue/Redmond/Kirkland AVG PRICE PER UNIT AVG PRICE PER SF CAP RATE VACANCY AVERAGE 2015 Sales RENT PER SF $217,743 $285 5.0% 2014 AVG PRICE PER UNIT AVG PRICE PER SF CAP RATE $1.45 1.5% WEST BELLEVUE/ WEST REDMOND/KIRKLAND BELLEVUE Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Buyer / Seller

Freeman Lochleven Holding LLC Lochleven 9925 NE 1st Street 1959 16 10,088 $4,500,000 12/7/2015 $281,250 $446 1.7% Equity Investment Group

Bellevue 8 LLC Crestview 10640 SE 16th St 1958 7 4,872 $1,430,000 10/9/2015 $204,286 $294 3.3% Cim Equities Inc

Equity Investment Group Lochleven 9925 NE 1st Street 1959 16 10,088 $3,348,800 5/29/2015 $209,300 $332 Unavailable Butail FamilyPartnership

AVERAGE 1959 13 8,349 $3,092,933 $231,612 $357 2.5% REDMOND Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Buyer / Seller

Trinity Real Estate Urbane 8296 160th Avenue NE 2008 20 27,155 $9,500,000 12/10/2015 $475,000 $350 5.1% Kauri Investments, Ltd

AVERAGE $9,500,000 $475,000 $350 5.1% KIRKLAND Property Name Address Year Built Units NRSF Price Sale Date $/Unit $/NRSF Cap Rate Buyer / Seller

Kirkcree LLC Creekside Place 11241 NE 68th Street 1977 21 15,390 $5,310,000 12/16/2015 $252,857 $345 4.2% Creekside Kirkland LLC

6711 106th Avenue City of Kirkland 6711 106th Avenue NE 1978 15 13,568 $4,675,000 4/1/2015 $311,667 $345 Unavailable NE Waddell Properties

AVERAGE 1977 18 14,479 $4,992,500 $282,262 $345 4.2%

OUR MARKET INSIGHT » The Eastside market has not experienced anywhere near the sales volume of Seattle. The obvious explanation is a much smaller boutique apartment stock and a lack of small buildings of 10 or less units. With those two factors in mind, we expect to see sales volume increase over the next few years as investors are priced out of the core of Seattle. The substantial per unit sales price growth from 2014 was fueled by the Urbane sale in Redmond, breaking all previous Eastside records. » Developers were slow to add units to West Bellevue during the current development cycle – adding only 1,000 units between 2011 – 2015. Development is beginning to catch-up with over 1,000 units planned for delivery each year for the next three years, with nearly 1,700 units planned for delivery in 2018 alone. Vacancy rates remain well-below 2.0% and rental rates are rising; however, rental rates still trail Seattle’s best neighborhoods.

36 COLLIERS INTERNATIONAL SEATTLE 2016 Seattle Neighborhood Apartment Market Study REDMOND/KIRKLAND WEST BELLEVUE/ West Bellevue/Redmond/Kirkland Deliveries 2016 2017 2018 2019 FUTURE Development Pipeline 2016 2017 2018 2019 FUTURE 1,537 1,304 4,064 220 4,709 Numbers within circles on map below indicates number of units in *Indicates Micro. †Indicates Possible Condo.

5th Plac each development. 18th Avenue Northeast 100th Street

t Northeast Novelty Hill Road

t 15th Avenue e Kirkland Sand Point Way Northeast Waverly Way Northeast 95th Street 20th Avenue Northeast Willows Road Northeast

196th Avenue Northeast

40th Avenue Northeast

3rd Street enue Northeas Av

8th Street

63rd Lake Street Northeast 85th Street Redmond Way 219th Avenue Northeast enue Northeast

Willows Road Northeast 196th Avenue Northeast 154th Avenue Northeast

124thAvenue Northeas

Av Central Way

3rd Street

25th Avenue Northeast NortheastREDMOND 90th Way

55th Northeast 90th Street Snohomish Drive 9th Avenue Cleveland Street Northeast 89th Street Clyde Lane Northeast 17th Street Northeast 88th Street

80th Avenue Northeast

6th Street South

Northeast 16th Street y Northeast Redmond

Kirkland enue Northeast Redmond Northeast 70th Place Northeast Union Hill Road Northeast 16th Place Av Northeast Redmond Way 148th Avenue Northeast Avenue 148th

Northeast 55th Street Northeast 87th Street 185th Avenue Northeast

State Street South Laurel Lane 122nd 75

NortheastUniversity Wa 15th Street Northeast 85th Street 122nd Avenue Northeast Redmond Way Northeast 85th Street Northeast 85th Street Roosevelt Way Northeast Roosevelt Way NE 84th Street Northeast 15th Place Central Way enue Northeast Lakeview Drive

Av 357 Northeast 14th Street University District Northeast 60th Street 188th Avenue Northeast Avenue 188th WEST BELLEVUE 35th Northeast 84th Street 154th Avenue Northeast

2nd Avenue 156th Avenue Northeast

208th Avenue Northeast208th 188th Avenue Northeast

116th Avenue Northeast

84th Avenue Northeast84th

enue Northeast Northeast 13th Street 110th Avenue Avenue Northeast 110th Avondale Road Northeast

206th Place Northeast

120th Avenue 120th Avenue Northeast 128 Av

enue Northeast Northeast 12th Street 96

116th Avenue Northeast 178th Place Northeast Northeast 52nd Street 221stAvenue Northeast Northeast Pacific Street 9 Lane Northeast 80th Lane 7th 108th Avenue Northeast 140th Avenue Northeast Avenue 140th

92nd Avenue Northeast 229th Drive Northeast 236th Avenue Northeast Avenue 236th

102ndAvenue Northeast

43rd Avenue43rd Northeast Av Northeast 80th Street 85th Avenue 85th Avenue Northeast Northeast 12th Place

Northeast 80th Street enue Northeast 1st Avenue South Bel Red Road 362 Cleveland Street102 Northeast 12th Street 195 105 Northeast 78th Street 96 Penny105 Lane Av Vineyard Crest 124th Northeast 40th Street

91st Avenue 91st Avenue Northeast Northeast 12th Street 34 Northeast Redmond Fall City Road

East Lake Sammamish Parkway Northeast95 Avenue Northeast192nd

111th Avenue Northeast 111th 110 132ndAvenue Northeast 197

101st Place Northeast 199th 2nd Street South 180 † Sahalee Way Northeast 175 East Lynn Street Avenue140th Northeast Northeast 75th Street Sunset Way 135 317 183 Northup Way

Hilltop Road Bellevue Way Northeast Northeast 10th Street 184th Court Northeast Northeast 74th Street Park Road Northeast 10th Street enue Northeast 286 Av Northeast 73rd Way Northeast 1st Street 162 Madison Park Lake Bellevue Drive Redmond 134th enue East Bellevue Way Northeast Northeast 9th Place

Av 290 152 enue Northeast 101st Avenue Northeast101st 159 Northeast 24th Street Northeast Union Hill Road Av Northeast 70th Place 24th

Bear Creekenue Northeast Parkway enue East Northeast 70th Street Northeast 71st Street Av

Av Washington Park 92nd NortheastNortheast 20th Street69th Street enue Northeast

15thAvenue East Av Northeast 8th Street Northeast 8th Street 10th 103rd Avenue 103rd Avenue Northeast 228th

84th Avenue Northeast84th

108th Avenue Northeast108th State Street South Avenue Northeast 110th enue Northeast 97th Avenue Northeast

19thAvenue East Bellevue Redmond Road

Evergreen Point Road

enue Northeast Northeast 12th Street 244th enue East Northeast 16th Street

100th Avenue NortheastAvenue 100th Denny-Blaine Highmoor Lane Northeast 7th Street Capitol Hill Av Av Av

Northeast 1st Street 120th Avenue Northeast † Northeast 67th Street 119th Avenue Northeast Northeast 68th Street Marymoor Park Road 112th 112th 23rd

164th Avenue Northeast

Northeast Redmond Way 227th Avenue Northeast Madison Valley 1,000 Northeast 5th Street 232nd Avenue Northeast 6th Street South

Broadway East Madrona Drive Northeast 66th Place Overlake Drive West Northeast 6th Street Northeast 8th Street 114th Avenue Northeast

116th Avenue Northeast Overlake Drive West Overlake Drive East Northeast 8th Street enue Northeast East Pine Street Northeast 65th Street West 196th Av Madrona Northeast 6th Street Northeast 4th Street Northeast 64th Court Lake Washington Boulevard Northeast Bellevue 227 216th

102nd Avenue Southeast enue Bellevue Way Southeast Ridge Road 105th Avenue Northeast Bellevue 224th Avenue Northeast

19thAvenue

Av Deliveries Northeast 62nd Place

106th Place Northeast 240Lakeview Drive First Hill Main Street Main Street Northeast 62nd Court Sammamish Bellevue Northup Way 106th Avenue Northeast 23rd 100

14thAvenue

t

212th Avenue Southeast

231 34thAvenue

244th Avenue244th Southeast Northeast 61st Place

113th Place Northeast 2016 2017 2018 2019 FUTURE Northeast 4th Street Northeast 60th Street Lake Hills Connector Bridlewood Circle enue Southeast

Yesler Terrace Central District Av enue Southeast

107th Avenue Northeast 98th Place Northeast Avenue Northeast208th Av t

123rd Avenue Southeast Overlake Drive East enue NE Leschi 108th Avenue Northeast Northeast 1st Street South Jackson Street Northeast 3rd Place 228th Northeast 58th Place

154th Avenue Northeast 413 191 327 0 1,707

Southeast 14th Street 218th 57 190th Place Northeast Av

112th Avenue Northeast 145th Place Southeast Golf Drive South enue South Rainier Avenue South Av

102nd Avenue Northeast

103rd Avenue Northeast 187th Place Northeast 100 enue Northeast

35thAvenue South 23rd 115th Place Northeast 115th 154 enue Southeast Av Southeast 20th Street Av enue Northeast 125 Killarney Way Southeast 188th Sand Point Way Northeast North Mercer Way 112th Avenue Southeast † Avenue Northeast 114th Northeast Redmond Fall City Road

55th Avenue Northeast 200 Avenue Southeast 118th East Lake Sammamish Parkway Southeas 148th Southeast 25th Street Southeast 24th Street Av 107th Avenue Southeast Southeast 26th Street11th Avenue 370 135 KIRKLAND Willows Road Northeast 140th

158 10th Avenue enue Northeas Groat Point Drive 54th Avenue Northeast Northeast 52nd Street 114thAvenue Northeast 91 Northeast 90th Street

400 Av 114th Avenue Southeast 236th

Bellevue Way Southeast 500 Northeast 51st Street 130 256 Main Street Main Street

228th Avenue Northeast

122nd Avenue Northeast 106th Avenue Southeast Northeast 50th Street

3rd StreetNortheast 48th Place7th Avenue 118th Avenue Northeast 108th Avenue Northeast Southeast 1st Street 148thAvenue Northeast 101st Avenue Southeast

105th Avenue Southeast 156th Northeast 86th Court Market Street Northeast 85th Street 47th St 145th Avenue Northeast 20 134th Avenue Northeast 3505th Avenue 112th Avenue Northeast 112th 162nd Avenue Northeast Redmond Way Southeast 2nd Street Southeast 1st Street

51st Avenue Northeast

8th Lane 9 Lane Southeast 1st Street Lake Street Central Way Deliveries 2nd Avenue 154th Avenue Northeast Northeast 45th Place Northeast 45th Court Bel Red Road 118th Avenue Avenue Southeast 118th 50 132ndAvenue Northeast Northeast 65th Street 220 NE 43rd Ct 203rd Avenue Northeast Northeast 44th Street 2016 2017 2018 2019 FUTURE 125 West Lake Sammamish Parkway Northeast enue Northeast Southeast 5th Street Northeast 80th Place Northeast 42nd Way

40 336 Av 150 1,124 1,063Southeast1,696 4th Street0 2,102 Northeast 42nd Street Shoreland Drive Southeast Southeast 4th Place 115th Avenue Northeast 6th Northeast 39th Street Northeast 40th Street Northeast 76th Street 11 132ndAvenue Northeast 5th Avenue South State Street South enue Northeast East Lake Sammamish Parkway Northeast Northeast 36th Place Av Northeast 72nd Street Northeast 37th Way Northeast 70th Street Northeast 70th Place Northeast Penrith Road 59 Northeast 35thDeliveries Street Northeast 69th Street170th Avenue Northeast 140th

2nd Street South Sahalee Way Northeast Northeast 68th Street Northeast 34th Street 2016 2017 2018Northeast2019 67th StreetFUTURE Lake Street South Northeast 66th Court Northeast 32nd Court Northup Way Northeast 31st Place Northeast0 50 31st Street125Northeast220 65th Street900 enue Northeast Northeast 63rd Street 151st Place Northeast

Bellevue Way Northeast Av enue Northeast Northeast 30th Place WWW.DYLANSIMON.COM 37 233rd Place Northeast Northeast 62nd Court Av Northeast 29th Street Northeast 60th Street 134th Northeast 59th Street 135th Northeast 26th Place 137thAvenue Northeast 144th Avenue144th Northeast

enue Northeast Northeast 26th Street 205th Place Northeast Av

120th Avenue Northeast

Bridlewood Circle 178th Avenue Northeast

53rdAvenue Northeast Lakeview Drive Northeast 24th Street 236th Place Northeast 106th 140th Avenue 140th Avenue Northeast

enue Northeast Northeast 51st Street

Northeast 52nd Street enue Northeast Av Av Northeast 48th Place 108th Avenue Northeast Northeast 20th Place

6th Northeast 20th Street

148thAvenue Northeast 11 228th

112th Avenue Northeast 112th Northeast 20th Way enue Northeast Northup Way

Av Northeast 17th Place Northeast 45th Court

124th Avenue Northeast124th Bellevue Redmond Road

Northeast 16th Place 231st Place Northeast

108th Northeast 15th Place Northeast 16th Street

Hunts Point Road Northeast 39th Street Northeast 40th Street 92nd Avenue 92nd Avenue Northeast

132ndAvenue Northeast Northeast Points Drive Northeast 37th Street

112th Avenue Northeast Avenue Northeast140th

Northeast 31st Place Northeast 32nd Street

Evergreen Point Road Northeast 30th Place 156th Avenue 156th Avenue Northeast

157th Avenue157th Northeast Northeast 28th Street 134th Avenue 134th Avenue Northeast Points Drive Northeast

135th Avenue135th Northeast Northeast 26th Street Northeast 26th Place 137th Avenue Northeast

116th Avenue Northeast 116th 2016 Seattle Neighborhood Apartment Market Study

Data Sources

Rent & Vacancy Rates Dupre + Scott *Rent and Vacancy data 20-50 units Sales Data Real Capital Analytics CoStar Dupre + Scott Properties sold for re-development are not included as sales Development Data City of Seattle Department of Planning MPF Research Real Capital Analytics Dupre + Scott CoStar

* Micro/Efficiency Development included in unit count numbers. ** Possible condo/apartment developments included in unit count numbers. Development data collection completed as of December 15, 2015 Employment Data Puget Sound Regional Council Washington State Employment Security Department The Puget Sound Economic Forecaster

EMPLOYMENT DATA CALCULATIONS: In an effort to understand market behavior through job growth this study provides graphs setting forth job growth in our six subject submarkets, highlighting seven industry sectors (as set forth below). The figures represent number of jobs, not working persons and are representative of relative employment trends in each submarket and illustrate relative trends by industry.

NAICS codes used: Professional/STEM: 51, 54, 55 Construction & Manufacturing: 23, 31-33 Education/Healthcare: 61, 62, Education Government: Government FIRE: 52, 53 Trade Transportation & Utilities: 22, 42, 48, 49 Retail & Service: 44, 45, 71, 72, 81 Unused NAICS codes: 11, 21, 56

This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and /or its licensor(s). © 2016. All rights reserved.

38 COLLIERS INTERNATIONAL SEATTLE SEATTLE MULTIFAMILY GROUP

Our team of brokers is focused on providing absolute best-in-class brokerage services to apartment developers, investors and owners in Seattle and the Puget Sound region. INSIGHTS Our approach to the brokerage business is modern and dynamic. We perform all of the traditional tasks associated with apartment brokerage—yet our clients gain the advantage of modern advisory practices and services. information We think and act in terms of absolute market expertise, exposing arbitrage [ ] opportunities and achieving best-in-class sales results. We inspire trust and confidence in our guidance to the market by leveraging data and information to maximize profit for our clients. That is our Way. That is Brokerage Evolved.™ [ data ] Commodity Brokerage Services Offered: { > Sale of stabilized apartment buildings—5 units to 500 units > Off-market pursuits of pre-sale and stabilized apartment buildings > Sale of development land—apartments & mixed-use > Strategic disposition of apartment portfolios

We look forward to helping you gain an advantage over the market and maximize your profit.

Dylan Simon Jerrid Anderson Matt Laird Daryl Burton Vice President Associate Associate Associate DYLAN SIMON | VICE PRESIDENT | DIRECT 206 624 7413 | MOBILE 206 414 8575 | [email protected]

JERRID ANDERSON | ASSOCIATE | DIRECT 206 382 8554 | MOBILE 206 499 8191 | [email protected]

MATT LAIRD | ASSOCIATE | DIRECT 206 624 7416 | MOBILE 425 736 5516 | [email protected]

DARYL BURTON | ASSOCIATE | DIRECT 206 382 8553 | MOBILE 602 920 7878 | [email protected]

COLLIERS INTERNATIONAL | 601 UNION STREET, SUITE 5300 | SEATTLE, WASHINGTON 98101

WWW.DYLANSIMON.COM