THE SAVONA 24 Units • Portland, Oregon OFFERING MEMORANDUM

www.hfore.com (503) 241.5541 2 HFO INVESTMENT REAL ESTATE EXECUTIVE SUMMARY ASSET SUMMARY DETAILED UNIT MIX Location 4620 N Maryland Avenue Unit Type Unit Count Average Sq Ft Total Sq Ft % of Total Units City, State Portland, OR 97217 1 Bed / 1 Bath 3 390 1,170 12.5% County Multnomah 1 Bed / 1 Bath 4 401 1,604 16.7% Total Units 24 1 Bed / 1 Bath 8 407 3,256 33.3% Year Built 2019 1 Bed / 1 Bath 1 435 435 4.2% 1 Bed / 1 Bath 3 475 1,425 12.5% Approx. NR Sq Ft 10,390 1 Bed / 1 Bath 1 478 478 4.2% Average Unit Size 433 Sq. Ft. 1 Bed / 1 Bath 1 489 489 4.2% Acreage 0.29 acres 1 Bed / 1 Bath 3 511 1,533 12.5% Total / Averages 24 433 10,390 100.0%

The Savona is a 24-unit community located in north Portland. This brand new asset PRICE SUMMARY offers immaculate one-bedroom floor plans with high-quality finishes. Price $4,795,000 The Savona’s comfortable units, and outstanding location make the property an Price Per Unit $199,792 especially attractive investment opportunity. Rents are based on the recently achieved leases at The Savona as well as market rate projections for the vacant units. Per Square Foot $462 Projected Cap Rate 5.52% The Savona is located just 2 blocks from the North Prescott Street MAX Station. This allows residents to travel downtown in just 12 minutes. The property also has an outstanding Bike Score of 90, a ranking described as Biker’s Paradise. The Savona is within walking distance of numerous retailers and restaurants and provides short TOURS AND INQUIRIES drive times to major employment centers in Vancouver and Portland via Interstate 5. Lee Fehrenbacher • [email protected] The Savona’s desirable close-in location, combined with its new, modern units, make Greg Frick • [email protected] the property an ideal opportunity for investors seeking stable, quality assets in the 2424 SE 11th Avenue, Portland, Oregon 97214 growing Portland metro area. www.hfore.com • (503) 241.5541 • Fax: (503) 241.5548 Please do not disturb tenants.

THE SAVONA • 24 UNITS • PORTLAND, OREGON 3 4 HFO INVESTMENT REAL ESTATE THE SAVONA • 24 UNITS • PORTLAND, OREGON 5 • Stainless steel appliances • Luxury vinyl tile flooring • In-unit washer and dryers • Quartz countertops • Mini-split heating & air conditioning • Private balconies* • In-unit bike racks • Floor-to-ceiling windows

*In select units

6 HFO INVESTMENT REAL ESTATE THE SAVONA • 24 UNITS • PORTLAND, OREGON 7 OVERLOOK & ADIDAS HEADQUARTERS The Savona is strategically located in one of the most walkable In June of 2017, Legacy had a groundbreaking for a new $210 million project and transit-oriented neighborhoods in Portland. Situated in the on its NE Portland Campus. The building will offer 260,000 square feet of close-in north Portland Overlook Neighborhood, the Savona space on four floors including new operating rooms, MRI and ICU facilities. is directly adjacent to the light-rail served Interstate Corridor Another 80,000 square feet of existing space will be remodeled following and is just minutes from the popular Mississippi Avenue retail completion of the new building, which is expected to open in 2019. corridor. N Mississippi Avenue is a hot spot for bars, restaurants, and night life in North Portland. Located just East of the N In August of 2017, Legacy Emmanuel announced plans to develop a 1.7-acre Williams and Vancouver bike corridors, as well as Legacy block bounded by North Williams and Vancouver Avenues and N. Russell and Emanuel Hospital, Mississippi draws all manner of hipsters, Knott Streets. The parcel will include affordable housing, medical facilities, professionals and families. shops and community space. Details have yet to be completed. In September of 2018 the working group involved with the project signed a memorandum Among the neighborhood favorites is Prost, a German-style of understanding and project charter. Along with Prosper Portland, the bar known for its beer selection. In 2017 Prost acquired an stakeholders are continuing to discuss plans with the community. adjacent food cart pod. Patrons can now drink German beers while eating Koi Fusion or sandwiches from Breadbox. Hungry Randall Children’s Hospital at Legacy Emanuel has a neonatal unit for patrons on N Mississippi can also get ice cream at Ruby Jewel, newborns, a cancer treatment center and children’s emergency center. It is pizza at Lovely’s Fifty Fifty, or Oysters at the Olympia Oyster Bar. a nine-story building completed in 2012 and the $242 million project was For the early morning crowd, the street is home to a number Portland’s costliest development on the inner east side since reconstruction of brunch favorites, including Miss Delta and Gravy. The street of the Lloyd Center shopping mall 20 years earlier. is also home to live music venues Mississippi Pizza Pub and The Adidas North American Headquarters is less than a mile from Mississippi Studios, and breweries including Ecliptic Brewing the Savona along N. Greeley Avenue. Adidas has been hiring sportswear and Stormbreaker Brewing. professionals in its American headquarters in North Portland since 2001. The Mississippi Avenue also offers locals an eclectic shopping company now has approximately 1,700 employees in the Portland Metro experience. Shops include local chain Sloan Boutique, guitar Area, making it the second largest footwear and apparel company in the shop BlackBook Guitars, Salty’s Dog & Cat Shop, Babylon region. Vintage, and North Portland Bike Works, among many others. Adidas’ North American sales have been growing quickly over the last few Each year, neighborhood businesses and sponsors host the years, and the company is starting to outperform some of its top rivals. In Mississippi Street Fair – an event that draws thousands and the third quarter of 2017, the company’s North America revenue rose by 31%, features a number of live bands, local vendors, kids’ activities, topping $1 billion, and its footwear market share doubled. Adidas is currently and a BBQ competition. building an additional 400,000 square feet of space at its North American The Legacy Emanuel Hospital, Children’s Hospital and Headquarters on N Greeley Avenue in Portland, more than doubling its Health Center, is also just two miles from the Savona. The footprint there. The expansion will allow Adidas to increase its Portland hospital offers nationally acclaimed neuroscience care, which workforce from 1,700 to 2,800 employees. The total price tag for the project includes treatment for strokes and brain trauma. Emanuel is is around $140 million, and it is scheduled for completion in 2020. also Oregon’s burn center and its campus is home to the Randall Children’s Hospital.

8 HFO INVESTMENT REAL ESTATE THE OVERLOOK NEIGHBORHOOD The Overlook neighborhood is a residential, transit-oriented neighborhood in North Portland.

• 53% of neighborhood residents have a bachelor’s degree or higher, 18% have a graduate or professional degree, and 91% have at least a high school diploma. 12% of workers in the neighborhood commute via public transit, twice the regional average. 80% of Overlook residents report always feeling safe and secure in the neighborhood.

• Overlook is in the 94th percentile in Oregon for accessibility of jobs, goods, and services. Overlook has a Walk Score of 90, a Transit Score of 51, and a Bike Score of 81.

• 54.3% of households in the neighborhood are renters. The average household size is 2.26 residents, and 21.3% of households have children.

• Students at the Savona attend Beach Elementary School, Ockley Green Middle School or Jefferson or Roosevelt High School. All are located within one to two miles from the property.

THE SAVONA • 24 UNITS • PORTLAND, OREGON 9 LOCATION

Portland International Airport

30B 5 N VancouverAve

99W NE Ainsworth St

Peninsula Park Luther King Jr NE Martin NE Killingsworth St N Albina Ave NE 42nd Ave NE 33rd Ave

NE Alberta St. The Savona

NE Prescott St.

Willamette River 99E N Greeley Ave

NE Fremont St.

NE Knott St.

10 HFO INVESTMENT REAL ESTATE NEARBY AMENITIES Restaurants and Dining Shopping/Entertainment Lifestyle Services N Killingsworth St 11 Portland Community 6 7 9 10 College Cascade N Interstate Ave

N Sumner St

28 8 N Alberta St The Savona 27 12 King School Park N Going St 4 14 N VancouverAve 13 NE Prescott St N Skidmore St 1 5 Luther King Jr.NE Martin Blvd 15 2 24 N Greely Ave 16

N Mississippi AveN Mississippi 23 N Failing St N Interstate Ave 17 Denorval Unthank Park 22 18 26 N Williams AveN Williams Overlook Park 21 19 3 Irving Park 25 20

1. Fire on the Mountain 8. Adidas 15. Prost 22. Life of Pie Pizza 2. The Alibi Tiki Lounge 9. Lucky Lab 16. The Rambler 23. Ristretto Roasters Coffee 3. Kaiser Permanente 10. 76 17. Little Big Burger 24. Hopworks Pub & Beergarden 4. Plaid Pantry 11. Saraveza 18. Por Que No 25. Legacy Emmanuel 5. U.S. Bank 12. Victoria Bar 19. Spin Laundry 26. Whole Foods 6. Mio Sushi 13. Albina Press 20. People’s Pig 27. Portland Farmer’s Market 7. Greely Ave & Bar 14. Yard Bar 21. New Seasons Market 28. Jefferson High School

THE SAVONA • 24 UNITS • PORTLAND, OREGON 11 PORTLAND METRO SNAPSHOT

PORTLAND REGION TOP 10 LISTS Oregon’s largest city, Portland, is near the confluence of the Willamette Portland consistently receives glowing and Columbia Rivers. The Portland Metro Area consists of four counties: reviews and rankings from the media. Multnomah, Washington, Clackamas, and Clark County, Washington. 2019 lists include: • #4 Best City for an Active Lifestyle (Wallethub) APARTMENT MARKET DIVERSIFIED ECONOMY • #7 Healthiest Cities to Live (Thrillist.com) The Portland Metro Area consistently ranks Portland is home to the headquarters of • #7 Best Cheap Destinations in the U.S. (U.S. among the nation’s lowest for apartment Fortune 500 companies Nike and Lithia Motors. News and World Report) vacancy rates according to the U.S. Census Fortune 1000 companies headquartered here • # 8 Best Place to Live in the U.S. (U.S. News and Bureau and other third-party services like REIS, include Columbia Sportswear, Greenbrier World Report) MPF Research, and Axiometrics. The U.S. Census Cos. and Portland General Electric. Fortune • #8 Fittest Cities in America (CBS News) Bureau pegged Portland’s Q3 2018 vacancy 500 companies based outside Oregon with • #9 Best Foodie Cities in the USA (U.S. News and rate at 4.5% and the U.S. average at 7.1%. major operations here are Precision Castparts World Report) and Intel. REIS forecast 2018 Portland metro year-over- 2018 lists include: year rents growth at 3.0% and the Multifamily Tech and software companies continue to • #1 Restaurant City of the Year (Bon Appetit) NW Apartment Report survey proved average relocate their operations here or open major • #1 Best Foodie City in America (Wallethub & October 2017-18 year-over-year rent growth outposts in Portland. These companies enjoy Travelpulse) #6 (Jetsetter) at 3.3%. Portland’s educated workforce, affordable high quality of life, and a low cost of doing • #3 Healthiest City in the U.S. (Active.com) SKILLED WORKFORCE & STRONG EMPLOYMENT business compared to the Bay Area. • #3 Best Place for Business and Careers (Forbes) In a 2018 WalletHub report comparing 150 of • #4 Best City for Biking (Fast Company) the largest U.S. metros, Portland is listed as Companies which have opened major branches in Portland include Airbnb, Google, • #9 Top City for Entrepreneurs and Start-Ups the 15th most educated city in America. More (Business.org) #23 (CNBC) than half of Multnomah County workers have Squarespace, Mozilla, Simple, Survey Monkey, • #10 Greenest City in America (Newsweek) a college degree, well ahead of the national SalesForce and New Relic, Inc. Portland’s tech average of 38.5%. startup companies include Viewpoint, Jama • #10 Most Entrepreneurial State (Amazon.com) Software, Thetus, Urban Airship, Acquia, • #15 Most Educated City in America (Wallethub) According to the State of Oregon’s Employment Elemental Technologies, Act-On, Puppet Labs, Department, Portland enjoys one of the fastest and The Clymb. job growth rates in the Pacific Northwest, and the entire nation. Data indicates the area added 31,000 jobs in 2016, 28,000 jobs in 2017, and 29,000 in 2018.

12 HFO INVESTMENT REAL ESTATE THE SAVONA • 24 UNITS • PORTLAND, OREGON 13 OPERATIONS ANALYSIS

Income Current Scheduled Rents Per Unit % GOI Notes

Scheduled Gross Rent $359,160 $14,965 1 Less: Vacancy/Credit Loss -$17,958 -$748 -5.0% 2 Net Rental Income $341,202 $14,217 Includes: Utility Billing (RUBs) $14,400 $600 80% Includes: Miscellaneous $3,000 $125 Total Other Income $17,400 $725 3 Gross Operating Income (GOI) $358,602 $14,942 Expenses Projected Operations Per Unit % GOI % GOI Real Estate Taxes $36,000 $1,500 10.0% 4 Insurance $4,496 $187 1.3% Total Utilities $15,158 $632 4.2% Fee Management $17,930 $747 5.0% 5 Landscaping $2,400 $100 0.7% Maintenance & Repairs $8,400 $375 2.3% Turnover $3,600 $150 1.0% Reserves $6,000 $250 1.7% 6 Expenses -$93,984 -$3,916 -26.2% Net Operating Income (NOI) $264,618 $11,026 73.8%

14 HFO INVESTMENT REAL ESTATE OPERATIONS ANALYSIS 1. RENTS Rents are based on a recently signed leases as well as market rate projections for vacant units. Those averages total $1,247 per unit or $2.88 per sq ft.

Type Units Count Avg Sq Ft Current Scheduled Rent Rents per Sq ft 1 Bedroom / 1 Bathroom 3 390 $1,095 $2.81 1 Bedroom / 1 Bathroom 4 401 $1,208 $3.01 1 Bedroom / 1 Bathroom 8 407 $1,245 $3.06 1 Bedroom / 1 Bathroom 1 435 $1,145 $2.63 1 Bedroom / 1 Bathroom 3 475 $1,312 $2.76 1 Bedroom / 1 Bathroom 1 478 $1,395 $2.92 1 Bedroom / 1 Bathroom 1 489 $1,345 $2.75 1 Bedroom / 1 Bathroom 3 511 $1,345 $2.63 Total / Average 24 433 $1,247 $2.88

2. VACANCY The projected operations include a market-rate vacancy of 5.0%. 3. OTHER INCOME Other Income includes administrative, miscellaneous, and utility charges (RUBs). • RUBs. Residents are projected to be charged an average of $50 per unit per month for water, sewer and garbage expenses. The property is individually metered for electric. 4. PROPERTY TAXES Oregon’s property taxes are evaluated on a fiscal year starting July 1. In Oregon, property taxes are not reassessed on sale and are limited to a 3.0% annual increase at the state level. Property taxes paid prior to November 1 each year receive a 3.0% discount. The Savona’s projected operations include the projected property taxes for the 2019-2020 tax year totaling $36,000. 5. FEE MANAGEMENT The management fee has been projected to 5.0% of GOI or $17,930 which represents standard independent, third-party management costs for properties in the metro area similar to The Savona. 6. RESERVES Lenders require reserves be set aside to address future capital costs associated with any property as it ages. The projected operations include reserves of $250 per unit or $6,000 annually.

THE SAVONA • 24 UNITS • PORTLAND, OREGON 15 OFFER TERMS ASSET SUMMARY LOAN QUOTE - PROVIDED BY AMF CAPITAL Location 4620 N Maryland Avenue Term 20 Years 10 Year Fixed City, State Portland, OR 97217 Amortization 30 Years Total Units 24 Loan Amount $3,595,000 - (75% LTV) Rate 4.15% - 10 Years PRICE SUMMARY Debt Coverage Ratio 1.20x Price $4,795,000 *Other loan options are available for both term and LTV* Price Per Unit $199,792 Per Square Foot $462 Projected Cap Rate 5.52%

QUESTIONS & TOUR REQUESTS: All tours and inquiries regarding The Savona are to be directed to HFO Investment Real Estate at (503) 241.5541. Please do not disturb tenants.

Lee Fehrenbacher • [email protected] Greg Frick • [email protected] Tyson Cross • [email protected] Jack Stephens • [email protected] Todd Tully • [email protected] Adam Smith • [email protected] Khari Gates • [email protected] Rand Hoffman • [email protected] HFO Investment Real Estate 2424 SE 11th Avenue Portland, Oregon 97214

www.hfore.com (503) 241.5541 Fax: (503) 241.5548 Brokers licensed in the States of Oregon and Washington.

16 HFO INVESTMENT REAL ESTATE THE SAVONA • 24 UNITS • PORTLAND, OREGON 17 HFO Investment Real Estate Passion • Collaboration • Specialization

2424 SE 11th Avenue • Portland, OR 97214 www.hfore.com • 503.241.5541

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Parties who receive this information from unauthorized parties shall not be recognized. ©2019 HFO Investment Real Estate LLC. Build your legacy is a service mark of HFO Investment Real Estate. Licensed in the states of Oregon and Washington.