A 68-Unit Apartment Community Portland, OR OFFERING MEMORANDUM EXCLUSIVELY REPRESENTED BY Jordan A. Carter Clay Newton Executive Vice President Executive Vice President Shareholder Shareholder 503.221.2280 503.721.2719 [email protected] [email protected] Tyler Linn Vice President TABLE OF 503.221.2702 [email protected] kiddermathews.com CONTENTS The information contained herein is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Kidder Mathews and should not be made available to any other person or entity without the written consent of Kidder Mathews. Section 1 This information has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Executive Summary Kidder Mathews has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has Section 2 been obtained from sources we believe to be reliable; however, Kidder Mathews has not verified, and will not verify, any of the information contained herein, nor has Kidder Mathews conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must Property Description take appropriate measures to verify all of the information set forth herein. This information has been secured from sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Recipient of this report must verify the information and bears all risk for any inaccuracies. Section 3 Market Overview Section 4 Property Economics EXECUTIVE SUMMARY Section 1 The Offering Investment Highlights Market Overview 4 KIDDER MATHEWS | OFFERING MEMORANDUM | THE ASTORIA THE ASTORIA | OFFERING MEMORANDUM | KIDDER MATHEWS 5 EXECUTIVE SUMMARY 1913 NE 73rd Avenue The Offering ADDRESS Portland, OR 97213 Built in 1950 and recently renovated in 2014, The Astoria consists of 68 units YEAR BUILT / RENOVATED 1950/2014 with modern amenities and mid-century charm. Close to transit and shopping, The Astoria combines quiet residential living, within close proximity to all the NO. OF UNITS 68 excitement that Portland’s eastside has to offer. Situated on a private cul-de- TAX PARCELS R194040, R194041 sac, The Astoria has three separate parking lots and over 60 parking spaces. The central courtyard features a seasonal pool, fitness center, bike storage, laundry LAND AREA 2.67 Acres facilities and storage cabinets, as well as plenty of greenspace for outdoor NRSF 40,724 activities. GBA 57,432 The Astoria features over $1.1 million in recent renovations to the interior and exterior. Exterior renovations include newer roofs, paint, and energy efficient AVERAGE UNIT SIZE 599 SF vinyl windows. The interiors have been extensively renovated in 65 of the 68 BUILDINGS 5 units with new kitchens featuring modern cabinets and hard surface counters, new fixtures, and refinished hardwood floors (lower level) or carpet and vinyl PARKING ±60 surface off-street spaces (second level). Average rents are presently 5% below market, providing upside SIDING Brick/stucco through lease renewals and unit turns. HEAT Gas (Individually metered) Located in the Rose City Park neighborhood, The Astoria is situated near the Historic Hollywood Shopping District and the Jade International District, and AVERAGE MONTHLY RENT $1,249 Alameda/Beaumont neighborhoods. The property is located directly across NEW PRICE $13,000,000 $12,500,000 from the Rose City Public Golf Course, the second oldest golf course in Oregon. At the west end of the golf course is Rose City Park, which features sports fields, CAP RATE 5.51% play structures, a picnic area, and walking paths. The Astoria is also close to the GRM 12.00 I-84 and I-205 freeways, TriMet 77 Bus Line, and the NE 82nd Avenue Max Light Rail station. Downtown Portland is just a 10-minute drive west, the Portland International Airport is 10-minutes to the north, and Gresham is 20-minutes east. 6 KIDDER MATHEWS | OFFERING MEMORANDUM | THE ASTORIA THE ASTORIA | OFFERING MEMORANDUM | KIDDER MATHEWS 7 INVESTMENT HIGHLIGHTS ROSEWAY HEIGHTS GLENHAVEN Located only minutes from downtown Portland, The Rose City Park neighborhood combines the MIDDLE SCHOOL PARK comfort of the suburbs with the convenience and entertainment of city life. Located just blocks ROCKY from I-84, one mile from the I-205, and minutes from numerous bus stops and the nearby NE ALAMEDA BUTTE 82nd Avenue MAX Station, tenants have an abundance of public transportation options. The PARK neighborhood has ready access to some of Portland’s largest employers and business districts, while still being in close proximity to numerous parks and natural areas. GRANT PARK ROSE CITY PARK PRESIDENT JAMES ELEMENTARY SCHOOL MADISON HIGH SCHOOL Highlights $1.1 million in recent interior and exterior improvements ROSE CITY GOLF COURSE MAX LINE JASON LEE Pride of ownership opportunity Sandy Blvd ELEMENTARY IRVINGTON ROSE CITY GRILL SCHOOL Rental upside through raising rents to market Vintage charm with period amenities PORTLAND VALUE INN HOLLYWOOD Manicured courtyard setting Conveniently located near the Hollywood shopping district and directly across NE Halsey St NORMANDALE from the Rose City Golf Course PARK Close to Trimet 77 bus line, MAX Light Rail station, and freeways ROSEMOUNT BLUFF NATIONAL AREA Seller to reduce the purchase price by $150,000 if a buyer secures new financing through MAX LINE Chase or assumes the existing Chase loan. MONTAVILLA PARK COLUMBIA CHRISTIAN NE Glisan St MULTNOMAH SCHOOL UNIVERSITY LAURELHURST MAX LINE LAURELHURST THE PORTLAND PARK MONTESSORI SCHOOL NE 82nd Ave MT TABOR MONTAVILLA 8 KIDDER MATHEWS | OFFERING MEMORANDUM | THE ASTORIA THE ASTORIA | OFFERING MEMORANDUM | KIDDER MATHEWS 9 LOCAL HIGHLIGHTS Providence Portland Medical Center Rose City Golf Course Rocky Butte Park Located just nine minutes from The Astoria, Providence Portland Medical Located directly across the street from The Astoria, the 18-hole, tree-lined Rocky Butte is located 8 minutes from The Astoria. This extinct cinder cone Rocky Butte offers stunning 360° views of Portland, Mt. Hood, and Mt. St. Center is in the Laurelhurst neighborhood of Portland and is a full-service Rose City Golf Course is the second oldest municipal golf course in Oregon butte is part of the Boring Lava Field, a group of volcanic vents and lava flows Helens, from the top, where 2.38 acres of flat park are located. In addition to medical center specializing in cardiac care and cancer treatment. Opened in and serves as a major draw for local golf enthusiasts. Rose City Park, which located throughout Oregon and Washington state. The volcano erupted its unbeatable views, Joseph Wood Park is also home to two rock walls, where 1941, the hospital has 483 beds, and employs more than 3,400 people. With features play structures, sports fields, walking paths, and a picnic area is between 285,000 and 500,000 years ago, and is now the site of Joseph Hill climbers are regularly spotted. over 1,200 physicians on staff, the campus is also home to Providence Child located at the west end of the golf course. Wood Park and the Rocky Butte Natural Area. Center, a 58-bed facility dedicated exclusively to the care medically fragile children. The clubhouse, built in 1932, was recently listed on the National Register of historic places and is home to a pro-shop and the Rose City Grill. Providence Medical Center Facts: Area: 17.3 acres Opened in September 1941 by the Catholic Sisters of Providence High Point: 612 feet Employs 1,561 medical staff members Elevation Gain: 480 feet Received $33,725,159 in donations in 2017 $162,545,032 in charity and unpaid community benefit costs 10 KIDDER MATHEWS | OFFERING MEMORANDUM | THE ASTORIA THE ASTORIA | OFFERING MEMORANDUM | KIDDER MATHEWS 11 PROPERTY DESCRIPTION Section 2 Unit Mix Summary Common Area & Interior Highlights Floor Plans Maps & Aerials 12 KIDDER MATHEWS | OFFERING MEMORANDUM | THE ASTORIA THE ASTORIA | OFFERING MEMORANDUM | KIDDER MATHEWS 13 PROPERTY DESCRIPTION Unit Mix Summary # OF AVERAGE AVERAGE HIGH HIGH PRO FORMA UNIT TYPE RENT/SF PF RENT/SF UNITS SF RENT RENT RENT/SF RENT / SF 1 Bedroom / 1 Bathroom 1 536 $1,075 $2.01 $1,075 $2.01 $1,100 $2.05 2 Bedrooms / 1 Bathroom 23 592 $1,283 $2.17 $1,355 $2.29 $1,350 $2.28 2 Bedrooms / 1 Bathroom 5 611 $1,206 $1.97 $1,330 $2.18 $1,350 $2.21 2 Bedrooms / 1 Bathroom 39 603 $1,287 $2.13 $1,463 $2.43 $1,350 $2.24 TOTALS / AVERAGE 68 599 $1,277 $2.13 $1,306 $2.23 $1,346 $2.25 14 KIDDER MATHEWS | OFFERING MEMORANDUM | THE ASTORIA THE ASTORIA | OFFERING MEMORANDUM | KIDDER MATHEWS 15 Property Highlights Complete exterior upgrades Management office Complementary