14-Unit Divsion Street Trophy Asset April 2021 Contacts Investment Advisors OFFER SUBMISSION Sam Lawhead t 503-575-9550 Offers should be presented in the m 503-707-1971 form of a non-binding Letter of [email protected] Intent, spelling out the significant terms and conditions of purchaser’s Robert Black offer, including, but not limited to (1) t 503-575-9549 asset pricing, (2) due diligence and m 503-314-7273 closing time frame, (3) earnest money [email protected] deposit, (4) a description of the debt/ equity structure, and (5) qualifications Lydia Thompson to close. Offers should be delivered t 971-266-4946 m 503-866-4269 to the attention of Sam Lawhead at [email protected] the email address listed above. 2 CONFIDENTIAL OFFERING MEMORANDUM EXECUTIVE SUMMARY 4 PROPERTY PROFILE 8 MARKET OVERVIEW 14 FINANCIAL ANALYSIS 28 MARKET COMPARABLES 32 APPENDIX 40 NEWMARK 3 EXECUTIVE SUMMARY 4 CONFIDENTIAL OFFERING MEMORANDUM The Franklin Flats ADDRESS: 5166 SE Division Street, Portland, OR 97206 PRICE: $4,750,000 ASSESSOR PARCEL NUMBER: R241343 YEAR BUILT: 2018 NUMBER OF UNITS: 14 PARKING: 7 stalls / 0.5 Ratio AVERAGE UNIT SIZE: 693 SF LOT SIZE: 9,900 SF / 0.23 AC NRA: 9,708 SF AVERAGE MARKET RENT: $1,689 per month / $2.44 per SF AVERAGE IN-PLACE RENT: $1,679 per month / $2.42 per SF NEWMARK 5 NORTHWEST DISTRICT OHSU 18K+ Employees 15K+ Employees CBD SOUTH WATERFRONT 75K+ Employees 26K+ Employees LLOYD DISTRICT 25K+ Employees CENTRAL EASTSIDE 18.5K+ Employees HAWTHORNE RETAIL & DINING DISTRICT SE Hawthorne St Clinton Street Protected Bikeway DIVISION RETAIL & DINING DISTRICT Green Zebra Boutique Grocery Store 50th Ave SE Division St Division St Franklin High School Recently Completed $113M Streetcar Line Renovation Bus Line Max Line Bike Path 6 CONFIDENTIAL OFFERING MEMORANDUM CLINTON CITY PARK Investment Highlights • Amenity-Rich Location on Highly Coveted Southeast Division Street with Numerous Food Carts, Restaurants, Coffee Shops, and Bars LAURELHURST PARK • Walk Score 88 / Bike Score 99 SE Hawthorne St • Half a mile from Mt. Tabor Park and Recreational Area • One-Mile Median Incomes of $83,710, Average of $107,780 • Two Blocks to Green Zebra Boutique Grocery Store • Two Blocks to the Clinton Street Protected Bikeway • Pure Multifamily Play, No Retail Component • Air-Conditioning in all Units • Secure, Off-Street Tuck Under Parking at High 0.5 Ratio - More than all Nearby Competing Properties • 100% Leased and Occupied MT. TABOR • Strong Historical and Current Rental Collections PARK --> • Potential Upside in Two-Bedroom Penthouse Unit Rents 50th Ave • Recently Completed $113M renovation of Nearby Franklin High School SE Division St NEWMARK 7 PROPERTY PROFILE 8 CONFIDENTIAL OFFERING MEMORANDUM Construction Detail BUILDINGS 1 FLOORS 3 Parking and CONSTRUCTION TYPE Three-story Walk-up EXTERIOR HardiPlank and Cedar Storage ROOF TPO STALLS 7 at $150 per Month WINDOWS Vinyl Thermoplastic PARKING RATIO 0.5 PLUMBING PEX STORAGE UNITS 14 at $50 per Month FIRE/LIFE SAFETY Fire Sprinkler System MECHANICAL Hot Water Tanks UNIT HVAC Individual Mini-split Units UTILITIES Electric - Portland General Electric Water/Sewer - Portland Water Bureau Unit Mix 14% 14% TYPE NO. OF PERCENT AVERAGE IN-PLACE PER SF UNITS SF RENT Studios 2 14% 546 SF $1,323 $2.43 1x1 10 71% 703 SF $1,650 $2.35 2x2 2 14% 793 SF $2,250 $2.84 71% TOTAL/AVG 14 - 680 SF $1,741 $2.54 NEWMARK 9 Unit Amenities • Large Balconies & Patios* • Floor to Ceiling Windows • Large Average Unit Size • A/C via Individual Mini-Split Units • Quartz Countertops • Stainless Steel Appliances • Tile Backsplashes • Vinyl Plank Flooring • In-Unit Washers & Dryers *Some Units 10 CONFIDENTIAL OFFERING MEMORANDUM Common Area Amenities • Outdoor Lounge Area Courtyard with BBQ • Bike Storage Racks • Storage Units • Controlled-Access Community NEWMARK 11 Floor Plans 1 1 BENCH . .P C.I 1 BEDROOM 2 NET AREA: 697 SQ FT 1 STUDIO NET AREA: 537 SQ FT REF-1 DW-1 RNG-1 1A DETAILS DETAILS PLAN PLAN FRANKLIN APARTMENTS FRANKLIN APARTMENTS UNIT UNIT 1A Scale 1/2" = 1'-0" Scale 1/2" = 1'-0" Date 12.15.2015 Date 12.15.2015 Drawn Drawn 18" 15" 24" . north north 34" 30" H2 CLR Studio 1 Bedroom - A2 537 SF 697 SF 12 CONFIDENTIAL OFFERING MEMORANDUM Floor Plans 7 BEDROOM 2 1 1 1 1 1 1 1 BEDROOM 2 LIVING NET AREA: 715 SQ FT %('5220 7 1(7$5($ 64)7 KITCHEN BEDROOM 1 A1 - 1 DETAILS DINING PLAN FRANKLIN APARTMENTS REF-1 DW-1 UNIT 2 DETAILS PLAN FRANKLIN APARTMENTS UNIT 1 Scale 1/2" = 1'-0" Date 12.15.2015 Drawn 8" Scale 1/2" = 1'-0" north Date 12.15.2015 Drawn north 1 Bedroom - A1 2 Bedroom 2 Bath 715 SF 793 SF NEWMARK 13 MARKET OVERVIEW 14 CONFIDENTIAL OFFERING MEMORANDUM Submarket Spotlight: Division Street On Division Street, the best of urban Portland is on display. The neighborhood is heralded nationwide as Portland’s go-to destination for fine dining and innovative cookery. Portland residents of all ages flock to take advantage of the neighborhood’s distinct architecture and alluring amenities. Once a sleepy thoroughfare dotted with auto repair shops and dry cleaners, SE Division has transformed into a dynamic mixed-use playground with some of Portland’s best restaurants, wine bars, tap rooms and coffee shops. Where to Eat Another must-try venue is Bollywood Theater, a fun, high-energy take on Indian street food. Division Street Grocers by Ava Gene’s is the place to go to see and be seen. The high-end Italian dishes garnered the place national praise as a trendset- ter. Bete Lukas - White-tablecloth Ethiopian restaurant with a full bar & vegetar- ian options. Kim Jong Grillin’ - Kim Jong Grillin’ provides authentic Korean flavors dishes out of their food cart. Tokio Table - Modern Japanese eatery offering tableside hibachi meals & a sushi bar, plus sake & cocktails. Xico - Locally sourced Oaxacan fare is the focus of this stylish Mexican eatery with a luxe outdoor patio. PDX Sliders are crafting some of the best beef, chicken, and pork sliders in all of Portlandia. All their sliders are named after Portland’s famous bridges. Petite Provence - Warm cheese brioche and light, airy croissants with homemade berry jam? Oui. Superb salmon hash drizzled with fresh lemon dill sauce? Oui, oui! This charming French boulangerie offers a mouthwa- tering array of buttery pastries as well as delectable dishes for every meal, although brunch is particularly popular. Yatamuira Maru – A busy Japanese Izakaya located in SE Portland. House- made ramen noodles, stocks and broths that are simmered all day, hand- rolled gyozas, and sashimi broken down from whole fish. Everything is always made from scratch. NEWMARK 15 Where to Sweet The long lines prove it: they don’t make ice cream better than this. Salt & Straw offers unusual flavors, such as the popular honey balsamic strawberry with cracked pepper. Blue Star Donuts offers up hand-crafted brioche donuts from scratch, with fresh fruits, herbs and spices, even liqueurs. Donuts deluxe. Pinolo Gelato - Upmarket outpost for Italian-style gelato and sorbetto using local fruit & natu- ral ingredients. Lauretta Jean’s is a counter-serve bakeshop with seasonal handmade pies, breakfast & lunch sandwiches, plus beer & wine. St. Honore Bakery – A cozy, rustic boulangerie and you instantly feel a connection with the old-world charms of France. Where To Drink Scout Beer Tap House – A covered open beer garden with a tantalizing selection of beers and ciders, surrounded by multiple food carts for food options. Scoreboard Sports Bar - Sports bar with a relaxed vibe offering pinball, pool, Skee-ball and weekend karaoke, plus pub grub. Tea Bar – With teas are sourced from family farms all over the world, are certified or- ganic and fair trade and served in glass Mason jars. Good Coffee- the aptly named shop offers high-quality coffee to the neighborhood, no pretense attached. An entire bar devoted to the mildly psychoactive (and totally legal) root drink from the South Pacific,Bula Kava House can help ease any nerves. Served in coconut cup shells, the drink’s mood-altering effects can be both euphoric and relaxing. SE Wine Collective - Urban winery shared by multiple vintners with a laid-back bar serving elevated American plates. Stumptown Coffee Roasters - The spot that started it all. Founder Duane Sorenson opened the first Stumptown here in 1999. The building has history — it was once a beauty parlor called “Hair Bender,” which became the name of their most famous blend as a nod to that salon. Stumptown still roast many of their coffees here. 16 CONFIDENTIAL OFFERING MEMORANDUM What To Do The nearby Clinton Street Theater is famous for its art house offerings. The Rocky Horror Picture Show every Saturday night since 1978, reportedly the longest run in the world. When it’s time to relax, those in the know choose the Loyly Sauna for a full-body Swedish mas- sage and steam. As long as you’re in Portland, do as the local do and get some ink or maybe a whole sleeve at Sovreign Tattoo. It all comes together in August at the Division Street Fair, with a parade, artisan booths and live music. Take the dog for a walk to Sewallcrest Park to run around in the off-leash area and let the kids loose on the playground. The Park also offers paths, sport courts, and picnic areas. Getting Around Division Street is one of the more convenient close-in neighborhoods for people who commute downtown. The best bike routes are nearby, and the bus that runs down Divi- sion gets into center city in under 20 minutes.