A 68-Unit Apartment Community

Portland, OR

OFFERING MEMORANDUM EXCLUSIVELY REPRESENTED BY

Jordan A. Carter Clay Newton Executive Vice President Executive Vice President Shareholder Shareholder 503.221.2280 503.721.2719 [email protected] [email protected]

Tyler Linn Vice President TABLE OF 503.221.2702 [email protected] kiddermathews.com CONTENTS

The information contained herein is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Kidder Mathews and should not be made available to any other person or entity without the written consent of Kidder Mathews. Section 1 This information has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Executive Summary Kidder Mathews has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has Section 2 been obtained from sources we believe to be reliable; however, Kidder Mathews has not verified, and will not verify, any of the information contained herein, nor has Kidder Mathews conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must Property Description take appropriate measures to verify all of the information set forth herein.

This information has been secured from sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Recipient of this report must verify the information and bears all risk for any inaccuracies. Section 3 Market Overview

Section 4 Property Economics EXECUTIVE SUMMARY

Section 1

The Offering

Investment Highlights

Market Overview

4 KIDDER MATHEWS | OFFERING MEMORANDUM | THE ASTORIA THE ASTORIA | OFFERING MEMORANDUM | KIDDER MATHEWS 5 EXECUTIVE SUMMARY

1913 NE 73rd Avenue The Offering ADDRESS Portland, OR 97213

Built in 1950 and recently renovated in 2014, The Astoria consists of 68 units YEAR BUILT / RENOVATED 1950/2014 with modern amenities and mid-century charm. Close to transit and shopping, The Astoria combines quiet residential living, within close proximity to all the NO. OF UNITS 68 excitement that Portland’s eastside has to offer. Situated on a private cul-de- TAX PARCELS R194040, R194041 sac, The Astoria has three separate parking lots and over 60 parking spaces. The central courtyard features a seasonal pool, fitness center, bike storage, laundry LAND AREA 2.67 Acres facilities and storage cabinets, as well as plenty of greenspace for outdoor NRSF 40,724 activities. GBA 57,432 The Astoria features over $1.1 million in recent renovations to the interior and exterior. Exterior renovations include newer roofs, paint, and energy efficient AVERAGE UNIT SIZE 599 SF vinyl windows. The interiors have been extensively renovated in 65 of the 68 BUILDINGS 5 units with new kitchens featuring modern cabinets and hard surface counters, new fixtures, and refinished hardwood floors (lower level) or carpet and vinyl PARKING ±60 surface off-street spaces (second level). Average rents are presently 5% below market, providing upside SIDING Brick/stucco through lease renewals and unit turns. HEAT Gas (Individually metered) Located in the Rose City Park neighborhood, The Astoria is situated near the Historic Hollywood Shopping District and the Jade International District, and AVERAGE MONTHLY RENT $1,249 Alameda/Beaumont neighborhoods. The property is located directly across NEW PRICE $13,000,000 $12,500,000 from the Rose City Public Golf Course, the second oldest golf course in Oregon. At the west end of the golf course is Rose City Park, which features sports fields, CAP RATE 5.51% play structures, a picnic area, and walking paths. The Astoria is also close to the GRM 12.00 I-84 and I-205 freeways, TriMet 77 Bus Line, and the NE 82nd Avenue Max Light Rail station. Downtown Portland is just a 10-minute drive west, the Portland International Airport is 10-minutes to the north, and Gresham is 20-minutes east.

6 KIDDER MATHEWS | OFFERING MEMORANDUM | THE ASTORIA THE ASTORIA | OFFERING MEMORANDUM | KIDDER MATHEWS 7 INVESTMENT HIGHLIGHTS ROSEWAY HEIGHTS GLENHAVEN Located only minutes from downtown Portland, The Rose City Park neighborhood combines the MIDDLE SCHOOL PARK comfort of the suburbs with the convenience and entertainment of city life. Located just blocks ROCKY from I-84, one mile from the I-205, and minutes from numerous bus stops and the nearby NE ALAMEDA BUTTE 82nd Avenue MAX Station, tenants have an abundance of public transportation options. The PARK neighborhood has ready access to some of Portland’s largest employers and business districts, while still being in close proximity to numerous parks and natural areas. GRANT PARK ROSE CITY PARK PRESIDENT JAMES ELEMENTARY SCHOOL MADISON HIGH SCHOOL

Highlights

$1.1 million in recent interior and exterior improvements

ROSE CITY GOLF COURSE MAX LINE JASON LEE Pride of ownership opportunity Sandy Blvd ELEMENTARY IRVINGTON ROSE CITY GRILL SCHOOL Rental upside through raising rents to market

Vintage charm with period amenities PORTLAND VALUE INN HOLLYWOOD Manicured courtyard setting

Conveniently located near the Hollywood shopping district and directly across NE Halsey St NORMANDALE from the Rose City Golf Course PARK Close to Trimet 77 bus line, MAX Light Rail station, and freeways ROSEMOUNT BLUFF NATIONAL AREA Seller to reduce the purchase price by $150,000 if a buyer secures new financing through MAX LINE Chase or assumes the existing Chase loan. MONTAVILLA PARK COLUMBIA CHRISTIAN NE Glisan St MULTNOMAH SCHOOL UNIVERSITY LAURELHURST

MAX LINE

LAURELHURST THE PORTLAND PARK MONTESSORI SCHOOL NE 82nd Ave MT TABOR MONTAVILLA 8 KIDDER MATHEWS | OFFERING MEMORANDUM | THE ASTORIA THE ASTORIA | OFFERING MEMORANDUM | KIDDER MATHEWS 9 LOCAL HIGHLIGHTS

Providence Portland Medical Center Rose City Golf Course Rocky Butte Park

Located just nine minutes from The Astoria, Providence Portland Medical Located directly across the street from The Astoria, the 18-hole, tree-lined Rocky Butte is located 8 minutes from The Astoria. This extinct cinder cone Rocky Butte offers stunning 360° views of Portland, Mt. Hood, and Mt. St. Center is in the Laurelhurst neighborhood of Portland and is a full-service Rose City Golf Course is the second oldest municipal golf course in Oregon butte is part of the Boring Lava Field, a group of volcanic vents and lava flows Helens, from the top, where 2.38 acres of flat park are located. In addition to medical center specializing in cardiac care and cancer treatment. Opened in and serves as a major draw for local golf enthusiasts. Rose City Park, which located throughout Oregon and Washington state. The volcano erupted its unbeatable views, Joseph Wood Park is also home to two rock walls, where 1941, the hospital has 483 beds, and employs more than 3,400 people. With features play structures, sports fields, walking paths, and a picnic area is between 285,000 and 500,000 years ago, and is now the site of Joseph Hill climbers are regularly spotted. over 1,200 physicians on staff, the campus is also home to Providence Child located at the west end of the golf course. Wood Park and the Rocky Butte Natural Area. Center, a 58-bed facility dedicated exclusively to the care medically fragile children. The clubhouse, built in 1932, was recently listed on the National Register of historic places and is home to a pro-shop and the Rose City Grill.

Providence Medical Center Facts: Area: 17.3 acres Opened in September 1941 by the Catholic Sisters of Providence High Point: 612 feet Employs 1,561 medical staff members Elevation Gain: 480 feet Received $33,725,159 in donations in 2017

$162,545,032 in charity and unpaid community benefit costs

10 KIDDER MATHEWS | OFFERING MEMORANDUM | THE ASTORIA THE ASTORIA | OFFERING MEMORANDUM | KIDDER MATHEWS 11 PROPERTY DESCRIPTION

Section 2

Unit Mix Summary

Common Area & Interior Highlights

Floor Plans

Maps & Aerials

12 KIDDER MATHEWS | OFFERING MEMORANDUM | THE ASTORIA THE ASTORIA | OFFERING MEMORANDUM | KIDDER MATHEWS 13 PROPERTY DESCRIPTION

Unit Mix Summary

# OF AVERAGE AVERAGE HIGH HIGH PRO FORMA UNIT TYPE RENT/SF PF RENT/SF UNITS SF RENT RENT RENT/SF RENT / SF

1 Bedroom / 1 Bathroom 1 536 $1,075 $2.01 $1,075 $2.01 $1,100 $2.05

2 Bedrooms / 1 Bathroom 23 592 $1,283 $2.17 $1,355 $2.29 $1,350 $2.28

2 Bedrooms / 1 Bathroom 5 611 $1,206 $1.97 $1,330 $2.18 $1,350 $2.21

2 Bedrooms / 1 Bathroom 39 603 $1,287 $2.13 $1,463 $2.43 $1,350 $2.24

TOTALS / AVERAGE 68 599 $1,277 $2.13 $1,306 $2.23 $1,346 $2.25

14 KIDDER MATHEWS | OFFERING MEMORANDUM | THE ASTORIA THE ASTORIA | OFFERING MEMORANDUM | KIDDER MATHEWS 15 Property Highlights

Complete exterior upgrades Management office

Complementary parking Bike storage

Barbeque area Beautifully landscaped grounds

Fitness center Walking paths

Pet friendly Multiple laundry centers

Pet stations WiFi

Pool (seasonal) with sun deck Apartments adjacent to Rose City Golf Course (Public) Secured access buildings Close to Trimet 77 Bus Line, Max Enhanced lighting and video Light Rail Station, and freeways security

Exterior Highlights

Newer roofs

Newer exterior paint

Newer vinyl windows

Seasonal pool

Courtyard setting with manicured grounds

Multiple parking lots

16 KIDDER MATHEWS | OFFERING MEMORANDUM | THE ASTORIA THE ASTORIA | OFFERING MEMORANDUM | KIDDER MATHEWS 17 Interior Highlights

65 of 68 units fully renovated

Abundant natural light

Hardwood floors on lower units

Open layouts

Newer kitchen appliances

Newer fixtures

Newer flooring

Gas heating

18 KIDDER MATHEWS | OFFERING MEMORANDUM | THE ASTORIA THE ASTORIA | OFFERING MEMORANDUM | KIDDER MATHEWS 19 Floor Plan Descriptions PORTLAND INTERNATIONAL AIRPORT ONE BEDROOM / 1 BATHROOM TWO BEDROOM / 1 BATHROOM Overlook Parkrose Alberta NO. OF SIZE CURRENT HIGHEST NO. OF SIZE CURRENT HIGHEST UNIT TYPE UNIT TYPE UNITS (SF) AVG RENT ACHIEVED RENT UNITS (SF) AVG RENT ACHIEVED RENT Alameda 1 Bed / 1 Bath* 1 536 $1,075 $1,075 2 Bed / 1 Bath 23 592 $1,283 $1,355 Roseway

TOTAL 1 536 $1,075 $1,075 TOTAL 23 13,616 $29,509 $31,165 Rose City Park Average Rent / SF $2.01 $2.01 Average Rent / SF $2.17 $2.29 Hollywood Northwest Gateway

Laurelhurst SAMPLE FLOOR PLAN TWO BEDROOM / 1 BATHROOM DOWNTOWN Montavilla PORTLAND Buckman NO. OF SIZE CURRENT HIGHEST UNIT TYPE Mt. Tabor Gresham UNITS (SF) AVG RENT ACHIEVED RENT

2 Bed / 1 Bath 39 603 $1,287 $1,463 Southwest Hills TOTAL 39 23,517 $50,193 $57,057 Richmond 26 Average Rent / SF $2.13 $2.43 South Waterfront Beaverton

TWO BEDROOM / 1 BATHROOM Woodstock

NO. OF SIZE CURRENT HIGHEST UNIT TYPE Lents UNITS (SF) AVG RENT ACHIEVED RENT

2 Bed / 1 Bath 5 611 $1,206 $1,330 Multnomah Sellwood-Moreland TOTAL 5 3,055 $6,030 $6,650

Average Rent / SF $1.97 $2.18 *The one bedroom unit was originally a two-bed unit where a bedroom was converted to a management office Happy Valley

Section 3

Portland MSA

Portland Rankings

Apartment Market

22 KIDDER MATHEWS | OFFERING MEMORANDUM | THE ASTORIA THE ASTORIA | OFFERING MEMORANDUM | KIDDER MATHEWS 23 MARKET OVERVIEW

Portland MSA

Portland is considered one of the nation’s most livable cities. Located on the Portland is a walkable and bikable city. Within walking distance of most banks of the Willamette River, only 90 minutes from snow-capped peaks and parts of downtown is the campus of Portland State University, the world- the Pacific Ocean, one might not realize Portland’s bustling downtown and class Portland Art Museum, Waterfront Park, Pioneer Courthouse Square, the waterfront are the heart of a metropolitan region with more than two million Oregon Historical Society, a performing arts complex, and a concert hall. For people. Twelve bridges span a wide elbow of the Willamette River, connecting sports fans, Portland is home of the MLS Timbers, NBA Trail Blazers, and WHL the east and west sides of town. Throughout the metro area are thriving Winterhawks. Outdoor enthusiasts love Forest Park, the largest city park in neighborhoods filled with restaurants, record shops, bars, funky clothing the nation, with 5,000 acres of hiking and biking trails, a zoo, public gardens, stores, antique malls, and art galleries. and beautiful old-growth woods. The downtown core is connected by one of the world’s leading public transportation systems, a combination of buses, Portland is known for its progressive bike-friendly attitude, lively music streetcars, and light-rail trains, putting the entire metro area only a couple and restaurant scenes, food carts, farmers’ markets, and endless recreation stops away. possibilities. Beyond the metro area residents enjoy the Pacific Northwest’s natural beauty, via slopes, sails, surf, and trails.

$24.3B 3rd Best ADDED TO PORTLAND MSA ECONOMIC GROWTH IN ECONOMY DUE TO THE COUNTRY DURING 4Q17 TECH SECTOR IN 2017 (FOR OREGON) $171B 10th TOTAL GDP FOR HIGHEST PERCENTAGE OF PORTLAND-VANCOUVER- WORKFORCE IN TECH IN HILLSBORO IN 2016 THE COUNTRY 3.5% 3.9% PORTLAND MSA NATIONAL UNEMPLOYMENT RATE UNEMPLOYMENT RATE

24 KIDDER MATHEWS | OFFERING MEMORANDUM | THE ASTORIA THE ASTORIA | OFFERING MEMORANDUM | KIDDER MATHEWS 25 PORTLAND MSA ECONOMIC DRIVERS Growing Population Oregon was the #2 moving destination in 2018 for people moving from one The Portland-Vancouver-Hillsboro region added more than 3,600 tech jobs state to another, according to United Van Lines in 2017, employing a total of 134,200 workers throughout the area. Those numbers give the Portland area the 10th highest percentage of workforce in Portland has added 42,000 residents over the last three years, an increase of tech in the country. The tech sector alone added over $24.3 billion into the 1.7%, well above the national average Portland Metro economy in 2017. Portland Rankings Portland had the 19th highest population growth by US Metro from 2010 to 2017 Portland’s manufacturing sector is also going strong, with firms such as Intel, Nike, Adidas, Columbia Sportswear, and Boeing employing more than 40,000 Portland estimates around 40,000 new migrants a year, of which more than 40% have a college degree workers, and contributing to the area’s current unemployment rate of 3.5%, below the national average of 3.9%. Employment #1 #1 Oregon had the third fastest GDP growth (3.7%) nationally for the last Portland MSA employment is at an all-time high, employing BEST PLACES FOR SAFEST PLACE quarter of 2017, with a total gross domestic product for the Portland metro BUSINESSES & TO LIVE ±1,240,000 workers area at over $171 billion in 2017. Oregon’s GDP growth is due in large part to its CAREERS RENTAL HOUSING durable goods output, primarily coming out of the computer and electronic In the past year, Portland MSA has added over 48,400 jobs, an increase of 2.6% FORBES JOURNAL 2017 2017 manufacturing sectors. U.S. News recently ranked Oregon as the third fastest Portland MSA is expected to add ±48,000 additional jobs in the next two years growing state in the country.

Investing in Portland Nike announced a major $275M+ expansion that will create 500 new jobs ULI 2018 Investment Prospects ranks Portland 2nd in the Pacific Region Kaiser Hospital in Hillsboro was completed, adding 1,100 new jobs #1 #1 ENERGY FIT TEST Oregon personal income growth was 8th nationally at 5.4% (2017) Daimler Trucks recently completed a $150M headquarters on Swan Island, INFRASTRUCTURE CIT Y IN creating 400 new jobs AMERICA Portland ranked #6 on Business Insider’s 50 Best Places to Live in America US NEWS 2018 HUFFINGTON Portland MSA multifamily vacancy is below 4.4% Adidas is expanding its North American headquarters by 200,000 SF, adding POST ±1,100 jobs in the process Portland MSA is the 8th strongest rental market in the nation, per Axiometrics

Portland’s current unemployment rate is 3.9%, a 41-year low Intel’s lab expansion is predicted to add 1,750 jobs by 2022 Intel recently announced plans for a multi-billion dollar expansion of their #1 #2 Hillsboro campus MOST MOVING DESIRABLE DESTINATION PLACE TO LIVE OF 2018 Top Manufacturing Firms in Portland US NEWS UNITED VAN LINES 2019 2019

19,300 EMPLOYEES 12,000 EMPLOYEES 2,800 1,700 1,579 1,500 IN OR & SW WA IN OR & SW WA EMPLOYEES EMPLOYEES EMPLOYEES EMPLOYEES

26 KIDDER MATHEWS | OFFERING MEMORANDUM | THE ASTORIA THE ASTORIA | OFFERING MEMORANDUM | KIDDER MATHEWS 27 Apartment Market NORTHEAST PORTLAND PORTLAND The Central Northeast Submarket has a mid-sized multifamily presence, and ±27K 6,100 120 56 investors and developers are beginning to pay this area a bit more attention, Portland was designated the #2 moving destination by United Van Lines in according to CoStar. This primarily residential, suburban submarket has a 2018, and Oregon has consistently ranked as one of the top five states for UNITS ADDED UNITS TO BE UNITS UNITS TO BE FROM DELIVERED DELIVERED DELIVERED smaller multifamily footprint. The Central Northeast’s relative affordability is in-migration numbers over the last several years. Employers such as Intel, Construction 2012-2017 IN 2019 Construction IN 2018 IN 2019 a strong attraction for renters in the Portland area. Vacancy in this submarket, Nike, Adidas, and Amazon have attracted a skilled workforce to the metro at 5.4% is comparable to the Portland market average. Central Northeast area. Amazon alone has invested around $2.8 billion into the Oregon market rents were $1,169 per unit at the of 2018, with rent per square foot economy, with ground broken for three new distribution centers, of one averaging $1.49. million square feet each, in late 2017. $2.2B+ $1.6B+ $45M $24.5M The Hollywood District has been the epicenter of recent multifamily The Portland-metro area is currently in the middle of extensive apartment TRADED TRADED TRADED TRADED development in the Central Northeast, with 75% of new units constructed IN 2018 IN 2017 IN 2018 IN 2017 construction. While vacancies have gone up due to the increased supply located there. There is currently a limited supply of multifamily housing in the Sales Sales of new units in the past few years, Portland’s overall vacancy rate, at 4.85%, HISTORICALLY LIMITED SALES VOLUME Central Northeast. There were 120 units delivered in 2018, and only 50 in 2017. remains comparable to the national average. Substantial demand in the There are just 56 units currently under construction, due to be delivered in 2019. multifamily market should alleviate concerns about oversupply. The influx of well-educated young professionals to the area should have a mitigating effect on vacancy rates as construction increases. According to CoStar, as of 639,863 2,451,560 46,980 53,695 January 2019, there are more than 10,600 units under construction, with about PORTLAND PORTLAND MSA NORTHEAST PROJECTED 6,100 expected to be delivered in 2019. An overwhelming majority of the PORTLAND 2035 POPULATION Population Population new construction has taken place in the city’s Core, close to downtown, while

submarkets outside of the Core, like Gateway, have seen relatively limited SOURCE: COSTAR SOURCE: COSTAR new construction.

The metro area remains popular with Millennials in search of creative, eco- friendly, and affordable spaces with good access to transit hubs, walkable neighborhoods, and entertainment options. Employment, population, and income growth all exceed national averages, providing solid economic indicators that demand in the Portland apartment market will remain robust, particularly amongst younger generations.

Portland’s population growth is still one of the strongest in the country due to high net migration trends. The metro area gained 30,066 residents between July 2016 and July 2017, increasing Portland’s population to 2,453,168 and making it the 22nd fasting growing metropolitan area out the nation’s 100 largest cities. With a growth rate of 1.9%, Portland is one of only 28 cities in the country that are growing by at least 1% a year. The State of Oregon Employment Department places Portland’s population growth at 19th in country, with a 10% population increase from 2010 to 2017.

28 KIDDER MATHEWS | OFFERING MEMORANDUM | THE ASTORIA THE ASTORIA | OFFERING MEMORANDUM | KIDDER MATHEWS 29 PROPERTY ECONOMICS

Section 4

Current Rents

Operating Statement & Comparative Analysis

Underwriting Assumptions & Notes

Apartment Sale Comparables

30 KIDDER MATHEWS | OFFERING MEMORANDUM | THE ASTORIA THE ASTORIA | OFFERING MEMORANDUM | KIDDER MATHEWS 31 PROPERTY ECONOMICS

NEW LIST PRICE PRICE PER UNIT PRICE PER SF

$12,500,000 $183,824 $218

IN-PLACE CAP RATE GRM PRO FORMA CAP RATE

5.51% 12.00 6.02%

Current Rents

# OF AVERAGE AVERAGE HIGH HIGH PRO FORMA UNIT TYPE RENT/SF PF RENT/SF UNITS SF RENT RENT RENT/SF RENT / SF

1 Bedroom / 1 Bathroom 1 536 $1,075 $2.01 $1,075 $2.01 $1,100 $2.05

2 Bedrooms / 1 Bathroom 23 592 $1,283 $2.17 $1,355 $2.29 $1,350 $2.28

2 Bedrooms / 1 Bathroom 5 611 $1,206 $1.97 $1,330 $2.18 $1,350 $2.21

2 Bedrooms / 1 Bathroom 39 603 $1,287 $2.13 $1,463 $2.43 $1,350 $2.24

TOTALS / AVERAGE 68 599 $1,277 $2.13 $1,306 $2.23 $1,346 $2.25

32 KIDDER MATHEWS | OFFERING MEMORANDUM | THE ASTORIA THE ASTORIA | OFFERING MEMORANDUM | KIDDER MATHEWS 33 Operating Statement & Comparative Analysis Underwriting Assumptions & Notes

CURRENT RENTS PRO FORMA RENTS CURRENT INCOME Repairs & Maintenance FY 2019 PER UNIT % OF EGI FY 2019 Underwrote to market estimate of $800 per unit annually for current and Gross Potential Income $700 per unit for pro-forma. INCOME Current column reflects estimated aggregate monthly rents that equate to Gross Potential Rent $1,041,783 $15,320 $1,098,600 $2.13 per square foot, or $1,277 per unit. Capital Reserves

Other Income $49,894 $734 T-6 Ann $49,894 Underwrote to market estimate of $250 per unit annually. Proforma column presents all units at estimated Current Market rents. On Utility Reimbursement Income $83,728 $1,231 T-6 Ann $83,728 average this equates to $1,346 per unit, or $2.25 per square foot, with an Real Estate Taxes Comcast Income $1,783 $26 T-8 $1,783 average premium of $79 per unit. Underwrote to 2018-19 tax year with a 3% discount. Property taxes paid before GROSS OPERATING INCOME $1,177,188 $17,312 $1,234,005 Vacancy Loss November 1st receive a 3% discount._

Vacancy Loss (5%) ($52,089) ($766) 5.00% ($54,930) Underwrote 5% vacancy loss market vacancy loss for current and pro-forma. PARCEL ACCT NO. ACREAGE 2018 TAXES EFFECTIVE OPERATING INCOME $1,125,099 $16,546 100% $1,179,075 Other Income R194040 1.78 $55,423

EXPENSES Underwrote all other income line items consistent with the Trailing 12 months R194041 0.35 $30,066

Property Taxes ($82,924) ($1,219) 7.37% ($82,924) ending in December 2018. General other income line item typically includes Total 2.67 $85,489 late charges, miscellaneous income, NSF fees, pet fees, damage/cleaning fees, Insurance ($17,420) ($256) 1.55% ($17,420) transfer fees, application fees, cancellation/termination fees, redecorating Water/Sewer ($46,143) ($679) 4.10% ($46,143) fees, and month-to-month premiums. Comcast income is from a recent ASSUMABLE LOAN

Electricity ($29,180) ($429) 2.59% ($29,180) revenue sharing agreement signed with Comcast in August of 2018. CHASE LOAN Garbage ($11,676) ($172) 1.04% ($11,676) Utility Reimbursement Income Originated December 2015 Gas ($12,945) ($190) 1.15% ($12,945) Matures December 2022 Utility reimbursement charges are underwritten consistent to Trailing 12 Balance ±$6.825M Landscaping ($19,620) ($289) 1.74% ($19,620) months. Rate 3.71% Repairs & Maintenance ($54,400) ($800) 4.84% ($47,600) EXPENSES Turnover ($9,493) ($140) 0.84% ($9,493) Seller to reduce the purchase price by $150,000 if a buyer secures new Professional Management ($33,753) ($496) 3.00% ($35,372) All expenses underwritten to trailing-12 months as of June 2019 except financing through Chase or assumes the existing Chase loan. the following: Onsite Management ($68,471) ($1,007) 6.09% ($68,471)

Office & Administrative ($33,607) ($494) 2.99% ($28,563) Insurance Reserves ($17,000) ($250) 1.51% ($17,000) Underwrote to Budget at $256 per unit annually. TOTAL EXPENSES ($436,632) ($6,421) 38.81% ($426,407)

NET OPERATING INCOME $688,467 $10,125 $752,668 Professional Management

Underwrote to actual cost of 3% of effective operating income.

34 KIDDER MATHEWS | OFFERING MEMORANDUM | THE ASTORIA THE ASTORIA | OFFERING MEMORANDUM | KIDDER MATHEWS 35 Apartment Sale Comparables

List Price $12,500,000 Price / Unit $183,824 Price / SF $218 NRSF 40,724 No. of Units 68 Year Built 1950

2020 AMBER COURT 2020 SW Salmon Street, Portland 2215 NW Irving Street, Portland

Sale Date January 2018 Sale Date September 2018 Sale Price $14,425,000 Sale Price $7,025,000 Price / Unit $262,273 Price / Unit $180,128 Price / SF $258 Price / SF $218 NRSF 55,885 NRSF 32,166 No. of Units 55 No. of Units 39 Year Built 1963 Year Built 1926 1 Cap Rate 5.00% 2 Cap Rate 4.52%

BINFORD GARDEN TOWNHOMES TWENTY TWO TWENTY TWO 6905 NE Hancock Street, Portland 2222 SW Spring Garden Street, Portland

Sale Date July 2018 Sale Date January 2019 Sale Price $30,729,309 Sale Price $8,550,000 Price / Unit $168,842 Price / Unit $194,318 Price / SF $166 Price / SF $163 NRSF 185,250 NRSF 46,480 No. of Units 182 No. of Units 44 Year Built 1949 Year Built 1967 3 Cap Rate 4.79% 4 Cap Rate 5.29%

36 KIDDER MATHEWS | OFFERING MEMORANDUM | THE ASTORIA THE ASTORIA | OFFERING MEMORANDUM | KIDDER MATHEWS 37 Apartment Rent Comparables

PROPERTY ADDRESS YEAR BUILT UNITS AVG SF ASKING RENT RENT / SF NOTES

Connery Place 8130 SE Mill St 1978 72 700 $1,315 $1.88 RUBS $90

Claremont Apartments 729 SE 42nd Ave 1950 32 700 $1,450 $2.07 RUBS $50

Lindhurst Apartments 6009 NE Flanders St 1948 64 999 $1,535 $1.54

27th East Apartments 533 SE 27th Ave 1970 32 860 $1,545 $1.80

Aalto Modern 3021 NE Glisan St 1965 24 770 $1,545 $2.01 RUBS $65

The Rose Court 2500 NE Hoyt St 1922 57 800 $1,595 $1.99 RUBS $75

Binford Garden 6905 NE Hancock St 1949 182 1,042 $1,595 $1.53 Townhomes

Belmont Terrace 721 SE 29th Ave 1975 10 750 $1,695 $2.26

COMPARABLE AVERAGE 66 839 $1,511 $1.83

The Astoria 1913 NE 72nd St 1950 68 611 $1,277 $2.13

Jordan A. Carter Executive Vice President Shareholder 503.221.2280 [email protected]

Clay Newton Executive Vice President Shareholder 503.721.2719 [email protected]

Tyler Linn Vice President 503.221.2702 [email protected]