Ground2500 Lease OfferingELLIOTT Memorandum Lake Washington PROPERTY Elliott Bay Multifamily Redevelopment Contact Ground Lease Opportunity 2500 Elliott Avenue Michael E. Finch 206.757.8895 Seattle, WA [email protected] www.centurypacificlp.com Century 1201 Third Ave, Suite 1680 Pacific Seattle, WA 98101 PROPERTY OFFERING MEMORANDUM The owners of 2500 Elliott (“Owners”) have engaged CenturyPacific, LLLP (“CenturyPacific”) as real estate advisor and agent, on an exclusive basis, in connection with a proposed ground lease of the property located at 2500 Elliott Avenue in Seattle (the “Property”). This Confidential Offering Memorandum (“Memorandum”) is being delivered to a limited number of parties who may be interested in the Property. By acceptance hereof, each recipient agrees not to reproduce or use in whole or in part the information contained herein, or any other information that is not already public, and to use this Memorandum only for the purpose of evaluating the leasehold offering. This Memorandum has been prepared based partly upon information furnished by the Owners, who have reviewed it and authorized its use for the purpose and in the manner described above. The Owners, CenturyPacific, shareholders, partners and affiliates make no representations or warranties with regard to the accuracy or completeness of the information contained herein. CenturyPacific has conducted a limited review of the information contained in this Memorandum, but has not independently verified the accuracy or completeness thereof. CenturyPacific does not represent or warrant the accuracy or completeness of the information contained in this Memorandum. Nothing contained in this Memorandum should be construed as a representation by any person as to the future possibilities or performance of the Property. EACH POTENTIAL LESSEE IS EXPECTED TO CONDUCT ITS OWN DUE DILIGENCE. CenturyPacific, LLLP 1201 Third Avenue, Suite 1680 Seattle, WA 98101 Michael E. Finch Vice President 206 757 8895 [email protected] Katherine K. Laird Executive Vice President 206 757 8892 Contact [email protected] S. Campbell Mathewson Michael E. Finch Executive Vice President 206.757.8895 206 757 8893 [email protected] [email protected] www.centurypacificlp.com Century 2 1201 Third Ave, Suite 1680 Pacific Seattle, WA 98101 TABLE OF CONTENTS I. INVESTMENT SUMMARY 4 II. GROUND LEASE TERMS 6 III. NEIGHBORHOOD 8 IV. MAPS & PHOTOS 11 V. TRANSACTION DETAILS 15 Contact Michael E. Finch 206.757.8895 [email protected] www.centurypacificlp.com Century 1 1201 Third Ave, Suite 1680 Pacific Seattle, WA 98101 I. INVESTMENT SUMMARY 2500 Elliott OVERVIEW The owners of 2500 Elliott Avenue are offering for long-term ground lease a highly-visible, 14,400 square foot redevelopment parcel located on the corner of Elliott Avenue and Wall Street in Seattle’s Belltown neighborhood (“the Property”). The Property—with commanding views and excellent proximity to Elliott Bay, downtown, and Amazon’s new corporate headquarters—is one of downtown Seattle’s premier residential redevelopment sites. SITE SUMMARY Address: 2500 Elliott Avenue Seattle, WA 98121 Land Area: 14,400 SF Parcel Number: 0653000165 Zoning: DMR/C 145/75 Wall Street, the southern boundary of the Property, is a “View Corridor” (SMC 23.49.024) PROPERTY The Property is located on the east side of Elliott Avenue between Vine Street and Wall Street in Seattle’s Belltown neighborhood. The site is square in shape, with approximately 120 linear feet of frontage on Elliott Avenue (north/south) and 120 linear feet of frontage on Wall Street (east/west). The Property is served by an alley to the east and slopes downward to the west to meet Elliott Avenue at-grade. The City of Seattle’s Belltown P-Patch and Belltown Cottage Park are located immediately to the north of the Property. NEIGHBORHOOD The Property is located in Seattle’s Belltown neighborhood, adjacent to downtown, Uptown, Pike Place Market, the Waterfront and the Denny triangle. Belltown is one of the most desirable mixed-use residential Contact locations available in the Pacific Northwest (see Section III). Michael E. Finch 206.757.8895 [email protected] www.centurypacificlp.com Century 2 1201 Third Ave, Suite 1680 Pacific Seattle, WA 98101 INVESTMENT SUMMARY 2500 Elliott ZONING The Property is zoned DMR/C 145/75 by the City of Seattle. This zone permits a variety of residential, office, retail and hospitality uses. Per the Seattle Municipal Code, residential redevelopment would have no maximum floor area ratio (FAR) and would have a maximum height of 145-feet. There is a maximum FAR of 4.5 for other uses (SMC 23.49.011). This zone is subject to the Mandatory Housing Affordability (MHA) provisions of the zoning code (SMC 23.49.007). In the DMR/C 145/75 zone, maximum lot coverage is 100% up to 65 feet, 75% from 65’-85’, 65% above 85’-145’(SMC 23.49.158). Along Wall Street, the southern boundary of the Property, the “View Corridor” requirements of the code limit the 100% lot coverage to 50’ in height and requires a setback of 30’ above the 50’ podium (SMC23.49.024). TITLE REPORT A current, preliminary title report issued by First American Title Insurance Company is available from CenturyPacific. 2500 Elliott benefits from a shadow easement across the city-owned property to the north. ENVIRONMENTAL No known issues. Prospective ground lessees should conduct their own environmental and other due diligence. W ESTER ST N E A IN V V E E L ST L I L O L TT A A V W E ST Contact Y R E Michael E. Finch TT A 206.757.8895 B [email protected] www.centurypacificlp.com Century 3 1201 Third Ave, Suite 1680 Pacific Seattle, WA 98101 II. GROUND LEASE TERMS 2500 Elliott BASE RENT The Owners are seeking proposals for an unsubordinated, absolute net ground lease. Please provide the land value offered and ground rent multiplier proposed to calculate the annual rent. TERM The proposed term is 75 years, with two (2) ten (10) year options to extend the Term, subject to maintaining improvements and other provisions. RENT ESCALATIONS Ground rent will be adjusted annually to reflect any percentage increases in the Seattle Area Consumer Price Index for “All Urban Consumers” (CPI-U; 1982-1984 = 100). To facilitate Lessee’s financing now or in the future, the increases will include a floor of 2.5% and a cap of 5.5%. Additionally, the underlying land will be re-appraised, without reference to current use, once every 10 years beginning at the commencement of year 15. In no event will the ground rent be less than that of the CPI- escalated prior year rent. DUE DILIGENCE & CLOSING The Owners propose a sixty (60) day period after mutual execution of a Letter of Intent for the Lessee to inspect the Property and perform general feasibility. Within 30-days following the Lessee’s waiver of feasibility, the parties will negotiate and execute a ground lease. LEASE COMMENCEMENT DATE The ground lease will commence upon the execution of the ground lease. EARNEST MONEY Upon execution of the Letter of Intent, the Lessee will deposit the full amount of the first year’s rent with First American Title Company. This Earnest Money is fully-refundable until the end of the Due Diligence period, at which time 10% will become payable to Lessor and applicable to the first year’s rent. Lessor and Lessee will agree to negotiate in good faith over the subsequent 30-day period to consummate a ground lease. The remaining 90% of the Earnest Money will be payable at lease execution and will be applicable to the first year’s rent. Should a ground Contact lease not be executed after Lessee’s waiver of feasibility, 10% of the Michael E. Finch Earnest Money will remain with Lessor as compensation for its lease 206.757.8895 preparation expenses and opportunity cost associated with pursuing a [email protected] ground lease with the Lessee. www.centurypacificlp.com Century 4 1201 Third Ave, Suite 1680 Pacific Seattle, WA 98101 GROUND LEASE TERMS 2500 Elliott CLOSING EXPENSES & BROKERAGE FEES The parties will share the escrow expenses on an equal basis. Real estate taxes will be prorated as of the date of Lease Commencement. Lessor and Lessee shall pay their own legal and real estate advisory/brokerage fees. UNSUBORDINATED GROUND LEASE The ground lease will be fully unsubordinated. All loans, claims and other interests shall be fully subordinate to the Lessor’s interest in the property. PERSONAL GUARANTIES The Lessor will require the Lessee to guarantee the payment of rent and other performance under the lease. Once the majority of improvements are completed, with a minimum value of $25 million and receipt of a certificate of occupancy, the guarantee will be released. Lessor will require current financial statements from Lessee. Lessor’s willingness to move forward with a lease is expressly conditioned on its approval, in its sole discretion, of such financials. COMPLETION ASSURANCE The Lessee will provide a completion bond or other equivalent financial assurance before undertaking any construction, major renovation or material lienable action on the Property. ASSIGNMENT The ground lease shall not be assigned without the prior written consent of Lessor. LESSEE’S RIGHT OF FIRST OFFER In the event the Lessor elects to sell its interest in the ground lease, Lessee will have a right of first offer to acquire Lessor’s interest. PROPERTY LEASED “AS IS” The Property is offered for lease “AS IS” with no representations or warranties relating to fitness of use, environmental condition or code compliance, etc. Lessor encourages Lessee to conduct its own feasibility Contact and environmental studies. Michael E. Finch 206.757.8895 [email protected] www.centurypacificlp.com Century 5 1201 Third Ave, Suite 1680 Pacific Seattle, WA 98101 III.