OFFERING MEMORANDUM UNITED STATES POST OFFICE 241 3rd St | Scotts Mills, OR 97375 EXCLUSIVELY LISTED BY MICHAEL CHISLOCK Associate Direct +1 949 777 5989 Mobile +1 714 330 2077 [email protected] License No. 02026406 (CA) BILL PEDERSEN Market Leader Direct +1 949 432 4501 Mobile +1 831 246 0646 [email protected] License No. 01975700 (CA) TIM CAMPBELL Broker of Record License No. 200203119 (OR) OFFERING MEMORANDUM . 241 3rd St SCOTTS MILLS, OR 97375 05 07 09 Financial Overview Tenant Overview Area Overview 3 INVESTMENT HIGHLIGHTS LOCATION HIGHLIGHTS • Property is positioned in an affluent local market with average House Hold income of over $94K in the 1, 3, and 5-mile radius. • Mission Critical Location that has remained in operation throughout the coronavirus pandemic. • Strategically positioned site with large service area and limited local competition. Next closest USPS is approximately seven miles away. • The local area is projecting strong population and House Hold development growth within the 1, 3, and 5-mile radius of the site over the next 5 years. • Single-tenant property leased to the U.S. Federal Government, which is rated Aaa by Moody’s Investor Services. 4 OFFERING OVERVIEW UNITED STATES POST OFFICE 251 3rd St, Scotts Mills, OR 97375 LIST PRICE CAP RATE GLA LOT SIZE YEAR BUILT $605,000 7.00% ± 2,603 SF 0.5 AC 1997 ANNUALIZED OPERATING DATA Annual NOI Monthly NOI NOI PSF CAP Current - 9/18/2027 $42,231.48 $3,519.29 $16.22 7.00% LEASE SUMMARY Tenant USPS Type of Ownership Fee Simple Lease Guarantor United States Postal Service Lease Type Gross FOR A CUSTOM LOAN QUOTE PLEASE REACH OUT TO Roof and Structure Landlord HUGH SEIFERT OF BARRINGTON CAPITAL Lease Expiration Date 9/18/2027 Capital Markets Direct 949.873.0271 | Mobile 619.818.4430 Term Remaining ±6 Years [email protected] Lic. # 02035554 * Termination Right: USPS may terminate the lease upon 90 days written notice to the lessor FINANCIAL OVERVIEW TOTAL $/SF Income Rental Income: Current - 9/18/2017 $44,017.00 $16.91 Effective Gross Income $44,017.00 $16.91 Estimated Expenses Insurance $1,134.77 $0.44 Maintenece $650.75 $0.25 Total Operating Expenses $1,785.52 $0.69 Net Operating Income $42,231.48 $16.22 TENANT OVERVIEW USPS WASHINGTON, D.C 633,108 WWW.USPS.COM TENANT HEADQUARTERS EMPLOYEES WEBSITE UNITED STATES POSTAL SERVICE (USPS) The United States Postal Service (USPS; also known as the Post Office, U.S. Mail, or Postal Service) is an independent agency of the executive branch of the United States federal government responsible for providing postal service in the United States, including its insular areas and associated states. It is one of the few government agencies explicitly authorized by the United States Constitution. The United States Postal Service employs 633,188 workers, making it the third-largest civilian employer in the United States behind the federal government and Walmart. The USPS operates 30,825 post offices and locations in the U.S., and delivers 149.5 billion pieces of mail annually. The USPS operates one of the largest civilian vehicle fleets in the world, with an estimated 227,896 vehicles. It is by geography and volume the globe’s largest postal system, delivering 47% of the world’s mail. In May 2019, the Postal Service announced that it will be releasing a pilot of self-driving trucks to haul mail across the U.S. The 18-wheelers were developed by startup company, TuSimple. The pilot will last two weeks, making five total round trips to cities across the country. 7 SURROUNDING TENANT MAP SCOTT MILLS CITY HALL SCOTT MILLS MARKET ROLLIN SANDWICHES 8 AREA OVERVIEW SCOTTS MILLS, OREGON Scotts Mills is a city in Marion County, Oregon. It is 2 miles south of Marquam and Oregon Route 213, between Silverton and Molalla. Scotts Mills is part of the Salem Metropolitan Statistical Area. DEMOGRAPHICS SALEM, OREGON POPULATION 1-MILE 3-MILE 5-MILE 2025 Projection 714 2,023 4,358 Salem is the capital of Oregon and the county seat of Marion County. It is located in the center of the 2020 Estimate 683 1,942 4,208 Willamette Valley alongside the Willamette River, which runs north through the city. The river forms the 2010 Census 704 2,041 4,508 boundary between Marion and Polk counties, and the city neighborhood of West Salem is in Polk County. Growth 2020-2025 4.54% 4.17% 3.56% HOUSEHOLDS 1-MILE 3-MILE 5-MILE Salem has a population of 174,365, making it the second-largest city in the state after Portland. Salem is a little under an hour’s driving distance away from Portland. Salem is the principal city of the Salem 2025 Projection 255 716 1,521 Metropolitan Statistical Area, a metropolitan area that covers Marion and Polk counties and had a 2020 Estimate 243 688 1,469 combined population of 390,738. This area is, in turn, part of the Portland-Vancouver-Salem Combined 2010 Census 252 725 1,578 Statistical Area. Growth 2020 - 2025 4.94% 4.07% 3.54% The city is home to Willamette University, Corban University, and Chemeketa Community College. The INCOME 1-MILE 3-MILE 5-MILE State of Oregon is the largest public employer in the city, and Salem Health is the largest private 2020 Average $94,190 $94,166 $96,165 employer. Transportation includes public transit from Cherriots (legally known as Salem Area Mass Household Income Transit District), Amtrak service, and non-commercial air travel at McNary Field. Major roads include Interstate 5, Oregon Route 99E, and Oregon Route 22, which connects West Salem across the Willamette River via the Marion Street and Center Street bridges. 9 ±30.79 MI ±19 MI 10 PORTLAND, OREGON CITY OVERVIEW Portland a desireable city with its beautiful parks, stunning mountain views and charming residential streets (not to mention a craft brewery on every block). Once the best-hidden secret of the northeast, Portland has become a major cultural mecca. The city is as quirky as its residents, offering worldly wonders like a vacuum museum, swimming in city fountains, a dormant volcano and a celebrated scene for bikes and brews. The people in Portland are movers and shakers, changing the way we look at everything from predictive technology to donuts. As the largest city in the state, its diverse economy fosters high-tech companies such as Google, Apple and IBM, bringing with it some of the brightest minds from all over the world. There are over 1,700 tech-related companies throughout the metropolitan area. With such boom in industry, the population is growing nearly 2% annually. These jobs are crucial to the local economy. Bloomberg reported in early 2016 that Oregon had the best-performing economy in the nation, factoring in elements such as employment, home prices, tax revenues, personal income, mortgage delinquency and the publicly traded equity of its companies. With the advantages of a big city and the feel and affordability of a small town, Portland has experienced a surge in population. Young entrepreneurs, innovators and creatives are steadily making Portland home, inevitably increasing the demand for housing. Multifamily construction projects are happening all over the city, particularly in areas such as Grant Park Village, Burnside, The Pearl District, and areas north of the Fremont Bridge. The cost of rent is rising with the high demand and low supply of housing. The Portland City Council approved a 1% construction tax that will raise an estimated $8 million extra to go towards building low-income housing. #5 BEST CITY TO LAUNCH A STARTUP TOP TEN IN TECH EXPORTS 5TH MOST INNOVATIVE STATE LARGEST CITY IN OREGON 11 CONFIDENTIALITY DISCLAIMER AND AGREEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Post Office located at 251 3rd St, Scotts Mills, OR 97375 (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum for the Property, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.