Jones Lang LaSalle Americas, Inc.

Repositioning Opportunity 0.66 ACRES / 28,682 SQUARE FEET / DEVELOPMENT POTENTIAL / REDMOND, WA Contents

Executive Summary 01

Property Description 03

Market Overview 05

Investment Sales

MARK THYGESEN MATT BOHNER Vice President Senior Associate [email protected] [email protected] +1 206 607 1737 +1 425 974 4042

Financing

ZACK GOODWIN Director [email protected] +1 206 576 0069

OFFERING MEMORANDUM PAGE 2 15075 NE 24TH STREET REDMOND, WA

NORTH

OFFERING MEMORANDUM PAGE 3 EXECUTIVE SUMMARY The Offering

JLL, as exclusive advisor, is pleased to present the opportunity to acquire 15075 NE 24th Street Address the 100% fee simple interest in 15075 NE 24th Street, Redmond, WA (the Redmond, WA 98007

“Property”). Consisting of a 1,000 square foot building on a 0.66 acre site, Total Rentable Square Feet 1,000 the Property is well located adjacent to NE 24th Street between 148th and 152nd Avenue. Originally constructed in 1981, the building is currently Site 0.66 acres (28,682 square feet)

home to a Bank of America Drive Thru. Number of Buildings 1

The Property benefits from its prime location just 13 minutes from Year Built 1981

downtown Bellevue combined with excellent frontage in a dense retail Parcel 392720-0210 corridor with traffic counts exceeding 19,400 vehicles per day. This rare OV1 offering is an excellent site for redevelopment or repositioning in a strong Zoning

growth market. FAR 3.7 increasing to 5.35 with bonus provisions

OFFERING MEMORANDUM PAGE 1 EXECUTIVE SUMMARY Investment Highlights Highly Visible • Highly visible location with frontage near NE 24th Street, one of Redmond’s major thoroughfares, with traffic counts exceeding 19,400 vehicles per day.

Favorable Zoning • Overlake Mixed-Use (OV 1) allows for a broad range of uses including retail, office, and residential.

Location • Located in Redmond’s Overlake Square submarket which boasts a 3.0% vacancy rate and is only 13 minutes from downtown Bellevue. • Surrounded by boundless amenities. • Adjacent to large and expanding economic drivers including Microsoft, Amazon, Google, REI, and Facebook. • Best-in-class demographic profile.

OFFERING MEMORANDUM PAGE 2 PROPERTY DESCRIPTION Property Highlights

The Property provides access via NE 24th Street to downtown Bellevue. It is located just 13 minutes from downtown Bellevue and 20 minutes from downtown Seattle. The Property is further enhanced by the proximity to the Microsoft Headquarters and the Overlake Village retail center which houses thriving shops, entertainment and exceptional eateries.

Current Use The Property is currently home to Bank of America Drive Thru that owns and operates the entire 1,000 square foot building. The prime location combined with excellent area demographics make the site prime for redevelopment or repositioning.

Year Built 1981

Parcel Number 392720-0210

Site 0.66 acres / 28,682 square feet

Number of Buildings 1

Property Class Retail Commercial

Zoning OV Zone 1

Max Height 9 stories

FAR 3.7 increasing to 5.35 with bonus provisions

Max Height 45 feet, which is generally 4 stories

FAR 2.5:1 increasing to 4:1 with bonus provisions

OFFERING MEMORANDUM PAGE 3 PROPERTY DESCRIPTION Site Plan 152ND AVE NE

NE 24TH STREET

15075 NE 24TH STREET REDMOND, WA 148TH AVE NE 148TH AVE 152ND AVE NE

NORTH NORTH

OFFERING MEMORANDUM PAGE 4 MARKET OVERVIEW Area Overview

DOWNTOWN SEATTLE | 300,000 EMPLOYEES ADJACENT TO LARGE & EXPANDING ECONOMIC DRIVERS Amazon Google Facebook

Since 1979, Microsoft has After breaking into Bellevue THE (UNDER CONSTRUCTION) • 550,000 SF OF OFFICE SPACE (UNDER served as an exceptionally in 2017, Amazon has rapidly CONSTRUCTION) strong economic driver to the Seattle region. The company has expanded their operations on • REI HEADQUARTERS • GLOBAL INNOVATION EXCHANGE (GIX) approximately 47,000 local employees with an average annual the Eastside. The e-commerce company currently leases more East Line DOWNTOWN BELLEVUE | 53,000 DAYTIME EMPLOYEES compensation of $100,608. In November 2017, the company than 1 million square feet in Bellevue, room for approximately Light Rail Expansion Amazon announced a multibillion-dollar redevelopment of its campus 6,900 employees, and plans to have 4,500 employees in Bellevue (Completion in 2023) T-Mobile in Redmond. Immediately adjacent to the Commons at Esterra by 2020. In April of 2019, Amazon continued its Bellevue expansion with the purchase of Bellevue Corporate Center. The Park, Microsoft is adding 17 new buildings with 2.5 million square BRIDLE TRAILS company has filed a pre-application to develop a 43-story, 1 feet of office expansion, 6.7 million square feet of renovated BEL-RED RETAIL CORRIDOR MEDIAN HOME VALUE: million square foot tower on the site. The 600-foot-tall building workspace, and spending $150 million on transportation and 90+ SHOPS $1,064,200 public space improvements. Upon completion in 2023, the developed by Amazon is expected to be completed by 2024. One Future SR 520 Off Ramp week later, the company pre-leased 646,900 SF in Trammell company will have capacity for 8,000 additional employees. Service in 2023 Crow’s office development in downtown Bellevue adjacent to OCULUS VR Amazon's currently committed office space. Altogether, Amazon (FACEBOOK) is on track to have a total of 3.9 million square feet, enough space Overlake Village Transit Station HEADQUARTERS for more than 25,000 employees in Bellevue, expanding faster on Completion in 2020, Service in 2023 700,000 SF AND GROWING the Eastside than in downtown Seattle, and what some might say is their "unofficial HQ2." Facebook (Oculus VR) began taking an interest in Redmond in 2016 when they leased 100,000 SF of office space on Willows Road. Since that time, Oculus VR has grown their footprint Google’s large and growing footprint in Kirkland will soon reach more than to nearly 700,000 SF in Redmond and has plans to develop 15075 NE 24TH STREET their new 675,000 SF “Building X”. Further, Facebook signed 1 million square feet. Google is purchasing Kirkland Urban, a REDMOND, WA a 13-year lease for 345,000 SF in the Spring District’s Block 615,000 SF office building just west of Redmond with the first 16 building, pre-leasing the entire building that is set to deliver phase of 380,000 SF set to deliver this year. The tech giant in 2020. Based on reported leasing activity, Facebook and already occupies 375,000 SF in Kirkland and is underway with a OVERLAKE VILLAGE Oculus’s committed office space on the Eastside has room for 136,000 SF expansion to the campus. In total, Google will have PARK AND RIDE 320 PARKING STALLS approximately 5,000 employees once occupied. room for 4,000 to 5,000 employees in the near future. MICROSOFT HEADQUARTERS • 2.5 MILLION SF EXPANSION The 36-acre, 16-block mixed-used development built around a future light rail station will be home to a new • 14.3 MILLION SF ONCE COMPLETE headquarters for outdoor retailer REI. It is also the site of the Global Innovation Exchange (GIX), the technology • 85+ BUILDINGS innovation graduate program created by the University of Washington, Tsinghua University, and Microsoft. GIX • 30+ YEARS IN REDMOND opened the doors to their 100,000 SF building in 2017. Construction is ongoing on Block 16, a 345,000 SF office development 100% pre- • 47,000 EMPLOYEES IN REDMOND leased by Facebook, Block 24, and REI’s new headquarters. At full build out, the district will accommodate over 17,000 daily employees. • #1 ECONOMIC DRIVER

8 NORTH 9

OFFERING MEMORANDUM PAGE 5 MARKET OVERVIEW Area Overview Adjacent to large and expanding economic drivers Microsoft Oculus VR (Facebook) office space. Altogether, Amazon is on track to have a Oculus VR (Facebook) began taking an interest in total of 3.9 million square feet, enough space for more Since 1979, Microsoft has served as an exceptionally than 25,000 employees in Bellevue, expanding faster strong economic driver to the Seattle region. The Redmond in 2016 when they leased 100,000 SF of office space on Willows Road. Since that time, Oculus on the Eastside than in downtown Seattle, and what company has approximately 47,000 local employees some might say is their “unofficial HQ2.” with an average annual compensation of $100,608. VR has grown their footprint to nearly 700,000 SF in In November 2017, the company announced a Redmond and has plans to develop their new 675,000 multibillion-dollar redevelopment of its campus in SF “Building X”. Further, Facebook signed a 13-year Google Redmond. In close proximity to 15075 NE 24th Street, lease for 345,000 SF in the Spring District’s Block 16 Google’s large and growing footprint in Kirkland will Microsoft is adding 17 new buildings with 2.5 million building, pre-leasing the entire building that is set to soon reach more than 1 million square feet. Google is square feet of office expansion, 6.7 million square feet deliver in 2020. Based on reported leasing activity, purchasing Kirkland Urban, a 615,000 SF office building of renovated workspace, and spending $150 million on Facebook and Oculus’s committed office space on the just west of Redmond with the first phase of 380,000 SF transportation and public space improvements. Upon Eastside has room for approximately 5,000 employees set to deliver this year. The tech giant already occupies completion in 2023, the company will have capacity once occupied. 375,000 SF in Kirkland and is underway with a 136,000 for 8,000 additional employees. SF expansion to the campus. In total, Google will have Amazon room for 4,000 to 5,000 employees in the near future. After breaking into Bellevue in 2017, Amazon has rapidly expanded their operations on the Eastside. The Spring District e-commerce company currently leases more than 1 The 36-acre, 16-block mixed-used development built million square feet in Bellevue, room for approximately around a future light rail station will be home to a 6,900 employees, and plans to have 4,500 employees new headquarters for outdoor retailer REI. It is also in Bellevue by 2020. In April of 2019, Amazon continued the site of the Global Innovation Exchange (GIX), the its Bellevue expansion with the purchase of Bellevue technology innovation graduate program created by Corporate Center. The company has filed a pre- the University of Washington, Tsinghua University, application to develop a 43-story, 1 million square foot and Microsoft. GIX opened the doors to their 100,000 tower on the site. The 600-foot-tall building developed SF building in 2017. Construction is ongoing on Block by Amazon is expected to be completed by 2024. One 16, a 345,000 SF office development 100% preleased week later, the company pre-leased 646,900 SF in by Facebook, Block 24, and REI’s new headquarters. Trammell Crow’s office development in downtown At full build out, the district will accommodate over Bellevue adjacent to Amazon’s currently committed 17,000 daily employees.

OFFERING MEMORANDUM PAGE 6 Everett Everett MARKET OVERVIEW

SR 526/ Evergreen SW Everett Industrial Center SR 99/Airport Rd Transportation Mariner

Central to new transit-oriented district Ash Way

West Alderwood Considering the massive growth of the Seattle MSA over the past Lynnwood decade, regional transportation organizations are working on a City Center Canyon Park spate of public projects to move Seattleites around more efficiently, Mountlake Terrace changing the fabric of the neighborhoods they exist in. ’s Lake Kenmore Bothell Shoreline North/185th Forest Woodinville East extension project is bringing high-quality rail Park transit to Redmond, seamlessly connecting 15075 NE 24th Street to Shoreline South/145th Brickyard 15075 NE 24TH STREET all employment centers in the Seattle MSA. The new Overlake Station, NE 130th REDMOND, WA just block from the Property, will begin operations in 2023 servicing a Northgate Kingsgate/Totem Lake Kirkland NE 85th Downtown Redmond projected 50,000+ riders. Once the project is complete, residents will Ballard Roosevelt SE Redmond enjoy 10-minute commutes to downtown Bellevue and 30-minute trips Interbay U District Smith Cove South Redmond Technology Center University of Kirkland to downtown Seattle on tracks separated from automobile traffic. The Seattle Center Washington Overlake Village East Link light rail extension will make Redmond easily accessible from South Lake Union Bel-Red/130th Denny Capitol Hill Spring District/120th Wilburton Seattle, further enabling the submarket to attract and retain the best Seattle Westlake Bellevue Downtown University Street Bellevue tech companies and talent. East Main Pioneer Square Midtown International District/Chinatown South Bellevue Richards Rd & King Street Judkins Mercer Stadium Park Island Eastgate LIGHT RAIL TRAVEL TIME FROM OVERLAKE VILLAGE STATION Alaska Mount Junction n e O Beacon Baker Lakemont lo dg D va ri O A el S Hill D Columbia City Redmond Technology Center 3 minutes S Graham St Issaquah NE 44th Othello Spring District 3 minutes Rainier Beach

Tukwila/ S Boeing Access Rd Downtown Bellevue 10 minutes International Blvd South Renton Downtown Seattle 30 minutes Burien SeaTac/Airport

Sea-Tac International Airport 60 minutes Angle Lake

Kent/DesMoines Existing Light Rail Station S 272nd Future Light Rail Station NORTH Future Bus Rapid Transit

Federal Way Source: Sound Transit OFFERING MEMORANDUM South PAGE 7 Federal Way Untitled map MARKET OVERVIEW

Untitled layer Demographics

2019 Population 2024 Population 1 MILE 20,409 23,558 2019 Households 2024 Households 8,551 9,792

2019 Median HH Income 2024 Median HH Income 15075 NE 24TH STREET REDMOND, WA $94,639 $109,372

2019 Population 2024 Population 111,610 124,33 3 MILES 2019 Households 2024 Households 46,524 51,810

2019 Median HH Income 2024 Median HH Income $112,935 $129,425

2019Population 2024 Population 255,553 279,763 5 MILES 2019 Households 2024 Households 105,244 115,121

2019 Median HH Income 2024 Median HH Income

Source: ESRI $124,153 $142,181

OFFERING MEMORANDUM PAGE 8 MARKET OVERVIEW Zoning Overview

Zone 1 encompasses most of the eastern half of Overlake Village, including both sides of 152nd Avenue NE. Residential uses are emphasized here as part of mixed-use developments. The land within this zone offers a strong opportunity to attract residents to this area due to its location within the core and proximity to transit options and the employment to the north.

BASE BONUSES AVAILABLE, AND QUANTITY MAX.

TDRs or GBP: 0.05 Floor area Ration (FAR) 3.7 5.35 Incentive Program: 1.69 TDRs or GBP: 1 story Height 5 9 stories Incentive Program: 4 stories

Source: City of Redmond Zoning Code

OVERLAKE VILLAGE ZONE 1

NORTH

OFFERING MEMORANDUM PAGE 9 Contacts

Investment Sales

MARK THYGESEN Vice President [email protected] +1 206 607 1737

MATT BOHNER Senior Associate [email protected] +1 425 974 4042

Financing

ZACK GOODWIN Director [email protected] +1 206 576 0069

Jones Lang LaSalle Americas, Inc. Real Estate License #3662

© 2019 Jones Lang LaSalle IP, Inc. All rights reserved. The information contained in this document is proprietary to Jones Lang LaSalle and shall be used solely for the purposes of evaluating this proposal. All such documentation and information remains the property of Jones Lang LaSalle and shall be kept confidential. Reproduction of any part of this document is authorized only to the extent necessary for its evaluation. It is not to be shown to any third party without the prior written authorization of Jones Lang LaSalle. All information contained herein is from sources deemed reliable; however, no representation or warranty is made as to the accuracy thereof. OFFERING MEMORANDUM PAGE 10