OFFERING MEMORANDUM

20TH & OAK TOWN- HOMES EUGENE,

PRICE: $3,300,000 100% OCCUPIED 1,523 SF AVERAGE UNIT SIZE 5.17% CAP RATE Table of Contents Exclusive Advisors This Offering Memorandum contains select information pertaining to the business 3 Executive Summary and affairs of the Property at Oak Street & 20th Avenue, Eugene Oregon. It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive 6 Property Description or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the 10 Market Overview purpose of a review by a prospective purchaser of the Property. For further information regarding the purchase and sale of this asset, to schedule a tour, 14 Sales Comparables or to submit a bid, please contact the following Colliers International professionals: 16 Financial Analysis

Skip Rotticci CCIM Vice President DIRECT +1 503 499 0062 EMAIL [email protected]

851 SW Sixth Avenue, Suite 1200 Portland, Oregon 97204 503 223 3123

20th & Oak - Eugene, Oregon | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 2 Executive Summary Executive Summary

Vital Data Price $3,300,000 Down Payment $1,115,000 Loan Amount $2,145,000 Loan Type New Acquisition Interest Rate/ 3.65% / 30 year Amortization

Gross Building Size 15,232 SF Price per SF $216.64 Year Built 2016 Type of Ownership Fee Simple

Cap Rate 5.17% Year 1 NOI $178,552 Year 2 Net Cash Flow $43,001 Site Plans After Debt Service Year 2 Cash on Cash 4.48% Return 10 Year Levered IRR 16.46%

20th & Oak - Eugene, Oregon | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 4

Exceptional Location 20th & Oak Townhomes are located in the highly sought-after West Campus neighborhood of Eugene, Oregon. The property is in very close proximity to the Campus. Next door to South Eugene High School, rated 10/10 on Greatschools.com. 20th & Oak Townhomes are within easy walking distance to grocery stores, retail services, restaurants, brew pubs, and downtown Eugene, and is adjacent to the newly renovated Amazon Park complex and directly across the street from the new Kidsport Fieldhouse development that includes an indoor basketball arena, outdoor soccer pitch with bleacher stands, and a clubhouse. Please visit www. kidsport.org Highly Desirable Homes The 20th & Oak Townhomes consist of 10 three-bedroom, two-bath, two-story townhomes in five duplex buildings. The parcelization allows for several different creative financing possibilities including the ability to obtain individual 30-year fixed rate mortgages on each duplex unit, allowing for long-term predictable operating expenses. Since completion of construction in late 2015, the 20th & Oak Townhomes have enjoyed 100% occupancy. Vacancies are immediately filled and in many cases have waiting lists for new tenants. Wide Appeal The 20th & Oak Townhomes are extremely popular with families that desire to live in close proximity to great schools and downtown Eugene. This includes empty nesters, young professionals, and upper class students at University of Oregon and Lane Community College who desire to be in a quieter neighborhood, yet still near to campus and downtown.

20th & Oak - Eugene, Oregon | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 6 Property Summary Property Details HIGHLIGHTS

NAME: 20th & Oak Townhomes • Under Market Rents LOCATION: Eugene, Oregon • Fantastic Location OCCUPANCY Market rate & student housing CONSTRUCTION: Class B • Superior Finishes YEAR BUILT: 2016 SQUARE FOOTAGE: 15,232 • Extremely Low Turnover OFFERING PRICE: $3,300,000 • 100% Occupied PRICE PER UNIT: $330,000 CAP RATE (Pro Forma/Current): 5.17%

86 Bike Score 77 Walk Score 44 Transit Score

20th & Oak - Eugene, Oregon | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 8 Amenities Map

20th & Oak - Eugene, Oregon | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 9 20th & Oak - Eugene, Oregon | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 10 Property Highlights

The 20th & Oak Townhomes were constructed in 2016 and are all two-story, three-bedroom, two-bath townhouse style units that average approximately 1,523 luxurious square feet. Most units boast individual patios and second-level balconies as well. Highlights of each unit include nine-foot ceilings, modern appliances, contemporary cabinets, granite counters, eating bars, washers and dryers, and air conditioning. The property includes an outdoor gathering area with barbecues and benches. The property has rare onsite automobile and bicycle parking. Each unit is separately metered for gas, electrical, and water. Trash removal and Wi-Fi are currently included but could be billed separately by a new owner.

The Eugene multifamily market is currently enjoying very low vacancy and strong rent growth as a result of many years with very little new development. The 20th & Oak Townhomes are particularly attractive due to their location and ability to serve so many different types of tenants from students, faculty and staff, to young singles, couples, and families looking for housing near schools, the Central Business District, retail stores and services, and parks and recreation.

• Nine Foot Ceiling Heights • Modern Appliances • Granite counters • Onsite car and bike parking • Outdoor gathering space with Barbecues • Spacious floor plans • Outdoor patios and decks • Loft study space • Air conditioning • Eleven onsite parking spaces • Low maintenance • Easy, cost effective management

20th & Oak Townhomes | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 11 Market Overview Eugene’s Recent Top Lists:

Top 10 Best Top 10 Cities College Towns to Visit

Top 100 Best Top 10 Best Places to Live Affordable Places to Live

Top 10 Best Top 10 Best Stem Cities Cities for New College Grads

20th & Oak - Eugene, Oregon | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 13 City of Eugene

The City of Eugene in Lane County is located at the southern end of the Willamette Valley. The Eugene Springfield Metropolitan Statistical Area (MSA) is the 3rd largest MSA in the state with a population of over 370,000. Eugene is home to the University of Oregon with approximately 23,000 students enrolled full time and Lane Community College with approximately 26,000 students enrolled full time. The Eugene MSA’s largest employers are Peace Health Medical Group (5,808 employees), University of Oregon (5,549 employees), Eugene School District (2,553 employees), U.S. Government (1,750 employees), and Lane Community College (1,650 employees). With approximately 50,000 full time students in the area student housing is a prominent multifamily product type. In recent years a great deal of new student housing has been developed in Eugene primarily large complex’s that focus on the housing needs of underclassmen. These projects tend to offer mostly 3-5 bedroom lock off units with social amenities, food service, and more of a dormitory style living environment. Upper class students tend to prefer smaller complex’s that are quieter, a bit further away from campus, closer to retail services and the Central Business District.

Eugene is home to numerous cultural organizations, including the Eugene Symphony, the Eugene Ballet, the Eugene Opera, the Eugene Concert Choir, the Northwest Christian University Community Choir, the Oregon Mozart Players, the Oregon Bach Festival, the Oregon Children’s Choir, the Eugene-Springfield Youth Orchestras, Ballet Fantastique and Oregon Festival of American Music. Principal performing arts venues include the Hult Center for the Performing Arts, The John G. Shedd Institute for the Arts (“The Shedd”), , Beall Concert Hall and the Erb Memorial Union ballroom on the University of Oregon campus, the McDonald Theatre, and W.O.W. Hall.

20th & Oak - Eugene, Oregon | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 14 City of Eugene

Because of its status as a college town, Eugene has been home to many music genres, musicians and bands, with a wide range of genres. Eugene also has a growing reggae and street-performing bluegrass and jug band scene. Multi- genre act the Cherry Poppin’ Daddies became a prominent figure in Eugene’s music scene and became the house band at Eugene’s W.O.W. Hall. In the late 1990’s, their contributions to the swing revival movement propelled them to national stardom. Rock band Floater originated in Eugene as did the Robert Cray blues band. Doom metal band YOB is among the leaders of the Eugene heavy music scene.

Eugene is home to “Classical Gas” Composer and two-time Grammy award winner Mason Williams who spent his years as a youth living between his parents in Oakridge, Oregon and Oklahoma. Mason Williams puts on a yearly Christmas show at the Hult center for performing arts with a full orchestra produced by author, audio engineer and University of Oregon professor Don Latarski.

Dick Hyman, noted jazz pianist and musical director for many of Woody Allen’s films, designs and hosts the annual Now Hear This! jazz festival at the Oregon Festival of American Music (OFAM). OFAM and the Hult Center routinely draw major jazz talent for concerts.

Eugene is also home to a large Zimbabwean music community. Kutsinhira Cultural Arts Center, which is “dedicated to the music and people of Zimbabwe,” is based in Eugene. Due to its central location, the 20th & Oak Townhomes are within walking distance to most of the venues listed.

20th & Oak - Eugene, Oregon | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 15 Comparables Sales Comparables SALE COMPARABLES ANALYSIS Comparable Subject 1 2 3 4

Property name 20th & Oak Townhomes The Patterson Phantom Way Arena 532 Lincoln Townhomes

Property Address 20th & Oak Townhomes 1331 Patterson St. 3619 Phantom Way 2050 E 15th 532 Lincoln St. City, State Eugene, OR Eugene, OR Eugene, OR Eugene, OR Eugene, OR PROPERTY DATA Building Type Garden Style Mid Rise Townhouse Mid Rise Low Rise Construction Class B B c B C Construction Quality Good Good Good Good Good Condition Excellent Excellent Good Excellent Good Number of Stories 2 5 2 5 3 Year Built 2016 2014 2018 2013 1912 Number of Units 10 100 6 65 6 RBA 15,232 76,700 8,016 64,100 2,023 Site Area Usable AC 1.10 1.77 0.55 0.59 0.34 FINANCIAL DATA Price Per Unit $330,000 $250,000.00 $267,500.00 $309,230.77 $71,250 Cap Rate 5.17% 5.30% 5.50% 3.20% 4.50% Sale Date TBD Sept. 2018 Sep-18 Jun-18 Mar-15 Sale Price $3,300,000 $25,000,000 $1,605,000 $20,100,000 $427,500 Sale Price PRSF $216.65 $325.95 $200.22 $313.57 $211.32

20th & Oak - Eugene, Oregon | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 17 Financial Analysis

20th & Oak - Eugene, Oregon | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 18 Investment Overview

20th & Oak Townhomes are a new construction in-fill project in the West Campus neighborhood of Eugene, Oregon. The property includes five individually platted duplex lots with a total of ten three- bedroom, two bath units. These contemporary floor plans have one bedroom and one-bathroom downstairs, elegant kitchens with eating bars and granite counters, large living rooms and dining areas, two bedrooms and a bathroom upstairs, a loft study space, patios and decks, washers and dryers, and air conditioning. The property is in close proximity to the University of Oregon campus, Downtown Eugene, South Eugene High School (10/10 on Greatschools.org), Amazon Park, grocery stores, restaurants, coffee shops, bistro’s, and retail services. The property has remained 100% occupied for the last two years.

20th & Oak Townhomes offer a unique opportunity to be marketed toward upper classmen student housing or as a market-rate multifamily offering that appeals to young professionals, singles, and young families. Its location in the City of Eugene offers extensive recreational opportunities, and is within easy walking distance to restaurants, schools, grocery stores, and retail services.

20th & Oak - Eugene, Oregon | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 19 Current Income - 2019

Monthly Scheduled Rent Income 2019 Actual

Rents Average No. of units Unit Type Approx. SF Income Min Max Rent/SF 10 3 bedroom / 2bath 1,523 $ 1,795 $ 1,850 $ 1.20 $ 18,185 0 $ - $ - $ - 0 $ - $ - $ - 0 0 $ - $ - $ - 10 TOTAL $ 18,185

Annualized Income Current Per Unit

Gross Potential Rent Owner August 2019 RR $ 218,220 $ 21,822

Utilitiy Reimbursment Market @ $55/Unit/Month $ - $ -

Pet Rent 60% of Units @ $25/Unit/Month $ - $ -

Misc. Income Market Estimate @ 1% GPR $ 1,200 $ 120 Gross Potential Income $ 219,420 $ 21,942 Vacancy Factor 3.25% $ ( 7,131) Effective Gross Income $ 2 12,289 $ 2 1,229

Annualized Operating Expenses Current Per Unit

Real Estate Taxes Market Estiamte@ $1,175/Unit/Year $ 20,137 9.49% $ 1,350

Insurance Market Estimate @ $289/Unit/Year $ 2,928 1.38% $ 293

Water & Sewer Market Estimate @ $400/Unit/Year $ - 0.00% $ -

Electricity / Gas Market Estimate @ $40/Unit/Year $ 1,912 0.90% $ 191

Garbage & Recycle Market Estimate @ $150/Unit/Year $ 1,800 0.85% $ 180

Management Fee Market Estimate @ 5% EGI 5% $ 10,614 5.00% $ 1,061

Payroll Market Estimate @ 6% of EGI $ - 0.00% $ - Administrative/ Marketing $ 900 0.42% $ 90

Landscaping Market Estimate @ $120/Unit/Year $ 1,200 0.57% $ 120

Repairs & Maintenance Market Estimate @ $257/Unit/Year $ 2,311 1.09% $ 425

Turnover Costs Market Estimate @ $120/Unit/Year $ - 0.00% $ 200

Reserves & Replacements Market Estimate @ $200/Unit/Year $ - 0.00% $ 250 Total Expenses $ 41,802 $ 4,160 Expenses Per Square Foot $ 2 .74 Expense Ratio of EGI 20% Net Operating Income $ 1 70,486 $ 17,068

20th & Oak - Eugene, Oregon | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 20 Pro Forma - Year One, 2020

Monthly Scheduled Rent Income 2020 Pro Forma Rents No. of units Unit Type Approx. SF Average Rent/SF Income Min Max 10 3 bedroom / 2bath 1,523 $ 1,925 $ 1,995 $ 1.30 $ 19,740 0 $ - $ - $ - 0 $ - $ - $ - 0 0 $ - $ - $ - 10 TOTAL $ 1 8,185

Annualized Income Current Per Unit Gross Potential Rent $ 218,220 $ 21,822

Utilitiy Reimbursment Market @ $65/Unit/Month $ 7,800 $ 780

Pet Rent 50% of Units @ $25/Unit/Month $ 1,500 $ 150

Misc. Income Market Estimate @ .5%% GPR $ 1,091 $ 109 Gross Potential Income $ 228,611 $ 22,861 Vacancy Factor 3.25% $ ( 7,430) Effective Gross Income $ 2 21,181 $ 2 2,118

Annualized Operating Expenses Current Per Unit

Real Estate Taxes Market Estiamte@ $1,175/Unit/Year $ 20,540 9.29% $ 1,350

Insurance Market Estimate @ $289/Unit/Year $ 2,957 1.34% $ 296

Water & Sewer Market Estimate @ $400/Unit/Year $ - 0.00% $ -

Electricity / Gas Market Estimate @ $40/Unit/Year $ 1,988 0.90% $ 199

Garbage & Recycle Market Estimate @ $150/Unit/Year $ 1,836 0.83% $ 184

Management Fee Market Estimate @ 5% EGI 5% $ 10,827 4.89% $ 1,083

Payroll Market Estimate @ 6% of EGI $ - 0.00% $ - Administrative/ Marketing $ 900 0.41% $ 90

Landscaping Market Estimate @ $120/Unit/Year $ 1,224 0.55% $ 122

Repairs & Maintenance Market Estimate @ $257/Unit/Year $ 2,357 1.07% $ 425

Turnover Costs Market Estimate @ $120/Unit/Year $ - 0.00% $ 200

Reserves & Replacements Market Estimate @ $200/Unit/Year $ - 0.00% $ 250 Total Expenses $ 42,629 $ 4,198 Expenses Per Square Foot $ 2.80 Expense Ratio of EGI 19% Net Operating Income $ 1 78,552 $ 17,920

20th & Oak - Eugene, Oregon | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 21 20th & Oak - Eugene, Oregon | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 22 Offering Procedure

The offering of the 20th & Oak Apartments is being conducted exclusively Please address your offers to the broker listed below. by Colliers International. All questions and inquiries should be directed to the Colliers representative listed in this memorandum.

Colliers will be available to assist prospective investors with their review of SKIP ROTTICCI CCIM Vice President the offering. On-site inspections of the property and tours of the market [email protected] area can be arranged directly with Colliers. +1 503 499 0062

Offers should include, at a minimum, the following: • The purchase price and closing date; • The source of capital, both equity and debt, for the transaction; • The amount of earnest money deposit; 851 SW Sixth Avenue, Suite 1200 • A detailed schedule of the due diligence and requisite approval process; Portland, Oregon 97204 and 503 223 3123 • A description of assumptions utilized for the offer.

20th & Oak - Eugene, Oregon | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 23 Confidentiality & Disclaimer Statement

This Offering Memorandum contains select information pertaining to the business and affairs of the Property at 20th & Oak Townhomes in Eugene, Oregon. It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Prop- erty. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained by Colliers International from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Mem- orandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum from Colliers, you agree: 1) The Offering Memorandum and its contents are confidential; 2) You will hold it and treat it in the strictest of confidence; and 3) You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, sharehold- ers, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

20th & Oak - Eugene, Oregon | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 24 20th & Oak - Eugene, Oregon | OFFERING MEMORANDUM COLLIERS INTERNATIONAL P. 25 851 SW Sixth Avenue, Suite 1200 Portland, Oregon 97204 503 223 3123

SKIP ROTTICCI CCIM Vice President [email protected] +1 503 499 0062