Aldrich Market & Condominiums940 Lawrence Street, Port Townsend, WA 98368

Joe DaubenbergerRE/MAX FIRST, INC.2500 W. Sims Way ,Suite 201 , Port Townsend , WA 98368joed@olypen.com(360) 301-2480

Price: $1,750,000

Building Size: 16,874 SF

Price/SF: $103.71

Property Type: Retail

Property Sub-type: Retail (Other)

Additional Sub-types:

Industrial Condo, Self/Mini-Storage Facility

Property Use Type:

Net Lease Investment with 2 years left on lease

:

:

Cap Rate 10.50%

No. Stories 3

Tenancy

:

Single

Aldrich Market &Condominiums$1,750,000

Built new from the ground up in 2005, this iconic PortTownsend commercial location is unbeatable anywherein the area. Same tenant use for the last 113 years, theAldrich's Commercial Condominium is a solid singletenant investment property. Over 16,000 square feet onthree floors, including basement mini-storage, main-floor retail grocery, and multi-use mezzanine. Thisproperty does not include the historic Aldrich's Marketand is subject to their lease agreement.

Under original lease agreement lessee has option to renew for four consecutive terms of five years.

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aldriCH (1st floor)*5,878 SF

ALDRICH MARKET HAS CATERED TO THE LOCAL COMMUNITY FO3 113 YEARS - THE LONGEST IN WA. STATE HISTORY.

Stairs

MEZZANINE*4256 SF

* DID NOT COUNT HALLWAY AND BATHROOMS

38’ 38’

35’

41’

BATHROOMS

BATHROOMS

Layout Square Footage 2B

1558 SF MAXWELL BEAN

SPIRITSWINE

&1368 SF ‘SITTING AREA’

1330 SF

OFFICES

PICTURE OF COMMUNITY LOUNGE/CAFE

mini storage/basement4,310 SF

Layout Square Footage 2c

INCOME

3rd & 4TH Floor

PRIVATELY OWNED

ADVANTAGE? THE CONDO ASSOCIATION SHARES THE COST OF THE MAINTE-NANCE (IE ROOFING COSTS) OF THE BUILDING MAKING IT A TRULY SUSTAIN-ABLE AND ADVANTAGEOUS LONG TERM INVESTMENT.

Amount Invested? (PV): $1,750,000.00

Amount Returned? (FV): $164,972.00

Number of Days? (#): 3653

Start Date? (m/d/y):

End Date? (m/d/y):

Gain or Loss: $-1,585,028.00

Percentage Gain or Loss: -90.6%

Annualized Return: -21.0%

Total Years: 10.008

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12/1/2014

12/1/2024

After ten years

Return on Investment (ten year payback)

Rentable Area Monthly Rent

Monthly Rent SF Annual Rent SF Annual Rent

Base Rent 13,742 $14,060 $1.02 $12.28 $168,726NNN Reimbursement $42,424

Gross Income $211,150Less: Vacancy 3.0% 5.0% ($10,557.50)Effective Gross Income $200,592.50

Operating Expenses $/SF % of Total $ ValueR.E. Taxes $.51 4.6% ($6,971)Insurance $.30 2.8% ($4,167)Management fees $.33 3.0% ($4540)Administration $.22 2.0% ($3026)Utilities $.00 0.0% ($0)Maintenance $.50 4.5% ($6871)Reserves $.20 1.8% ($2748)Total expense $2.06 18.7% *($28,890)

H&R LLL Costs ($6,730)Net Operating Income 10.61% (Cap Rate) $164,972 (NOI) / $1,750,000 (Value) $164,972

2014 Stabilized Net Operating Statement: Commercial Lease

Allocation Between Residential and CommercialBudget Grand 2013 2013 2014

Description Total % Amount % Amount Total

6000 - OPERATING EXPENSES

6250 - INSURANCE 31 190 1.151 18,025 0.849 13165 31190.3 3,177 8172

-

6350 LEGAL & ACCOUNTING 5,570 1.649 3,062 1.351 2,508 5,570 2,161 2,161 2,508

6400 MISCELLANEOUS EXPENSE 720 1.1 395.86 0.9 324 720 1,382 1,382 324

6500 - REPAIRS/MAINTENANCE 9,402 7.299 5,277.51 3.701 4,124 9,402 3,320 3,320 4,124

6550 - TAXES 65 1.649 1.351 65 118 118 30

6650 - UTILITIES 16,608 3.949 334.9 1.051 3,273 16,608 2,928 2,928 3,273

-

Total - OPERATING EXPENSES - 4.022 40,132 1.805 23,423 63,555 18,431

-

Transfer to Reserve Account 21,180 55% 11,645 45% 9,535 21,180 9,271 9,271 9,535

Grand total annual budget 84,735 51,777 32,959 84,735 Total HOA expenses 27,966

Monthly contribution to operating 5,296 3,344 1,952 5,296

Monthly contribution to reserve 1,765 55% 970 45%v 795 1,765

Monthly total contribution 7061 4,315 2,747 7,061

2014 Budget

Residential Commercial

Condos at Aldrich Market2014 Budget Expense Estimates by Category: Commercial & Residential Condos

19415

Retail SpaceCommercial Retail Space

,, 58%

55%

55%

56%

55%

80%

42%

45%

45%

44%

45%

%13,

36 29.25

$

$

$

$

$

$

Triple Net Costs

9,580

Continued on next page

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Condos at Aldrich Market2014 BudgetMonthly Residential AllocationsUnit Percent 2014 2013 2012

301 11.74 506.55 496.95 497303 10.23% 441.40 433.04 433304 0.1395 601.90 590.50 590401 0.1209 521.65 511.77 511402 0.1359 586.37 575.26 575403 0.1085 468.15 459.28 459404 0.143 617.00 605.32 605

Total $3,743.02 $3,672.13 $3,670.00

Condos at Aldrich Market2014 BudgetMonthly Commercial Allocations

Percent 2014 2013 2012Retail 77% 2110.46 2141.53 2013.98Storage 23% 636.10 645.47 607.02Total $2746.56 $2787 $2621

Condos at Aldrich Market2014 BudgetMonthly Totals Residential and Commercial

$4,352.00$2,773.00$7,125

ResidentialCommercialTotal

2013 2,013 2,014Commerical Retail Space Retail Space

3,948 3,948 2,198 2,21112,247 12,247

$49,154 42,4244,096 3,535

15,880

2014 Total Trip Net Costs Billed to H&R LLC:

Per Month:

H&R Liability InsuranceTaxes

Base Monthly Rent:

Additional Triple Net Costs Triple Net Costs

13.95%

11.74%

12.09%13.59%10.85%14.3%

Continued from previous page

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Financial Summary

AnalysisType ActualYear 2014Scheduled Gross Income $211,150Effective Gross Income $200,592Operating Expenses $35,620Net Operating Income $164,972

Major Tenant Information

Tenant SF OccupiedAldrich MarketCommercial Condominium

Lease Expires 1/31/2017 Under original lease agreement Lessee

has option to renew for four additional five year terms.

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940 Lawrence Street, Port Townsend, WA 98368

Centrally located in the uptown district of Port Townsend in a thriving business district including Restaurants, Pubs, Hair Salons & more. Aldrich Market has been a staple of the Port Townsend community for 113 years and very fittingly it's located directly across from the Port Townsend community center

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Property Photos

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CONVENIENT LOADING DOCKS

LOCATED NEXT TO BUS STOP AND ACROSS FROM COMMUNITY CENTER

Property Photos

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Property Photos

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Property Photos

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Property Photos

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Property Photos

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ALDRICH MARKET IS LOCATED IN THE THRIVING UPTOWN DISTRICT OF PORT TOWNSEND.

Oct 14 vs. 3 mo. prior Y-O-Y

— State $137 -0.5% +3.4%

Oct 14 vs. 3 mo. prior Y-O-Y

— State $17.41 -0.2% +0.6%

Market Trends

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Demographics

Population 1-mi. 3-mi. 5-mi.

2013 Male Population 1,208 4,346 6,7142013 Female Population 1,422 5,065 7,512% 2013 Male Population 45.93% 46.18% 47.20%% 2013 Female Population 54.07% 53.82% 52.80%2013 Total Population: Adult 2,278 7,900 12,0972013 Total Daytime Population 4,672 12,031 16,6212013 Total Employees 2,931 6,054 7,3982013 Total Population: Median Age 56 53 552013 Total Population: Adult Median Age 59 58 582013 Total population: Under 5 years 87 379 5322013 Total population: 5 to 9 years 88 376 5332013 Total population: 10 to 14 years 114 462 6592013 Total population: 15 to 19 years 86 437 6272013 Total population: 20 to 24 years 80 353 4922013 Total population: 25 to 29 years 71 361 5122013 Total population: 30 to 34 years 99 381 5432013 Total population: 35 to 39 years 97 420 5792013 Total population: 40 to 44 years 119 458 6592013 Total population: 45 to 49 years 158 575 8662013 Total population: 50 to 54 years 238 795 1,2252013 Total population: 55 to 59 years 302 1,027 1,5552013 Total population: 60 to 64 years 352 1,043 1,6532013 Total population: 65 to 69 years 276 825 1,3822013 Total population: 70 to 74 years 173 524 8772013 Total population: 75 to 79 years 107 346 6072013 Total population: 80 to 84 years 89 280 4402013 Total population: 85 years and over 94 369 485% 2013 Total population: Under 5 years 3.31% 4.03% 3.74%% 2013 Total population: 5 to 9 years 3.35% 4.00% 3.75%% 2013 Total population: 10 to 14 years 4.33% 4.91% 4.63%% 2013 Total population: 15 to 19 years 3.27% 4.64% 4.41%% 2013 Total population: 20 to 24 years 3.04% 3.75% 3.46%% 2013 Total population: 25 to 29 years 2.70% 3.84% 3.60%% 2013 Total population: 30 to 34 years 3.76% 4.05% 3.82%% 2013 Total population: 35 to 39 years 3.69% 4.46% 4.07%% 2013 Total population: 40 to 44 years 4.52% 4.87% 4.63%% 2013 Total population: 45 to 49 years 6.01% 6.11% 6.09%% 2013 Total population: 50 to 54 years 9.05% 8.45% 8.61%% 2013 Total population: 55 to 59 years 11.48% 10.91% 10.93%% 2013 Total population: 60 to 64 years 13.38% 11.08% 11.62%% 2013 Total population: 65 to 69 years 10.49% 8.77% 9.71%% 2013 Total population: 70 to 74 years 6.58% 5.57% 6.16%% 2013 Total population: 75 to 79 years 4.07% 3.68% 4.27%

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Demographics

Population (Cont.) 1-mi. 3-mi. 5-mi.

% 2013 Total population: 80 to 84 years 3.38% 2.98% 3.09%% 2013 Total population: 85 years and over 3.57% 3.92% 3.41%2013 White alone 2,483 8,714 13,2002013 Black or African American alone 11 48 732013 American Indian and Alaska Native alone 23 97 1632013 Asian alone 45 159 2232013 Native Hawaiian and OPI alone 1 27 372013 Some Other Race alone 13 77 1052013 Two or More Races alone 54 289 4252013 Hispanic 53 306 4022013 Not Hispanic 2,577 9,105 13,824% 2013 White alone 94.41% 92.59% 92.79%% 2013 Black or African American alone 0.42% 0.51% 0.51%% 2013 American Indian and Alaska Native alone 0.87% 1.03% 1.15%% 2013 Asian alone 1.71% 1.69% 1.57%% 2013 Native Hawaiian and OPI alone 0.04% 0.29% 0.26%% 2013 Some Other Race alone 0.49% 0.82% 0.74%% 2013 Two or More Races alone 2.05% 3.07% 2.99%% 2013 Hispanic 2.02% 3.25% 2.83%% 2013 Not Hispanic 97.98% 96.75% 97.17%2000 Not Hispanic: White alone 2,491 7,791 11,5172000 Not Hispanic: Black or African American alone 9 44 532000 Not Hispanic: American Indian and Alaska Native alone 16 103 1402000 Not Hispanic: Asian alone 36 108 1542000 Not Hispanic: Native Hawaiian and OPI alone 3 19 202000 Not Hispanic: Some Other Race alone 12 27 272000 Not Hispanic: Two or More Races 54 186 276% 2000 Not Hispanic: White alone 92.64% 91.94% 92.68%% 2000 Not Hispanic: Black or African American alone 0.33% 0.52% 0.43%% 2000 Not Hispanic: American Indian and Alaska Native alone 0.60% 1.22% 1.13%% 2000 Not Hispanic: Asian alone 1.34% 1.27% 1.24%% 2000 Not Hispanic: Native Hawaiian and OPI alone 0.11% 0.22% 0.16%% 2000 Not Hispanic: Some Other Race alone 0.45% 0.32% 0.22%% 2000 Not Hispanic: Two or More Races 2.01% 2.19% 2.22%

Population Change 1-mi. 3-mi. 5-mi.

Total: Employees (NAICS) n/a n/a n/aTotal: Establishements (NAICS) n/a n/a n/a2013 Total Population 2,630 9,411 14,2262013 Households 1,409 4,604 6,907

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DemographicsPopulation Change (Cont.) 1-mi. 3-mi. 5-mi.

Population Change 2010-2013 27 92 135Household Change 2010-2013 -2 -22 -32% Population Change 2010-2013 1.04% 0.99% 0.96%% Household Change 2010-2013 -0.14% -0.48% -0.46%Population Change 2000-2013 -59 937 1,800Household Change 2000-2013 3 630 1,105% Population Change 2000 to 2013 -2.19% 11.06% 14.49%% Household Change 2000 to 2013 0.21% 15.85% 19.05%

Housing 1-mi. 3-mi. 5-mi.

2000 Housing Units 1,577 4,312 6,4322000 Occupied Housing Units 1,406 3,974 5,8022000 Owner Occupied Housing Units 823 2,601 4,1252000 Renter Occupied Housing Units 583 1,373 1,6772000 Vacant Housings Units 171 338 630% 2000 Occupied Housing Units 89.16% 92.16% 90.21%% 2000 Owner occupied housing units 58.53% 65.45% 71.10%% 2000 Renter occupied housing units 41.47% 34.55% 28.90%% 2000 Vacant housing units 10.84% 7.84% 9.79%

Income 1-mi. 3-mi. 5-mi.

2013 Household Income: Median $48,131 $44,464 $47,2932013 Household Income: Average $64,544 $56,569 $58,8692013 Per Capita Income $34,938 $28,026 $28,8802013 Household income: Less than $10,000 124 428 5902013 Household income: $10,000 to $14,999 97 218 2652013 Household income: $15,000 to $19,999 98 282 4122013 Household income: $20,000 to $24,999 83 415 5192013 Household income: $25,000 to $29,999 88 242 3232013 Household income: $30,000 to $34,999 12 246 3102013 Household income: $35,000 to $39,999 44 204 3502013 Household income: $40,000 to $44,999 47 299 4792013 Household income: $45,000 to $49,999 178 308 4482013 Household income: $50,000 to $59,999 43 338 6822013 Household income: $60,000 to $74,999 145 476 7782013 Household income: $75,000 to $99,999 170 417 6702013 Household income: $100,000 to $124,999 128 442 5932013 Household income: $125,000 to $149,999 55 109 1782013 Household income: $150,000 to $199,999 35 70 1282013 Household income: $200,000 or more 62 110 182% 2013 Household income: Less than $10,000 8.80% 9.30% 8.54%% 2013 Household income: $10,000 to $14,999 6.88% 4.74% 3.84%

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Demographics

Income (Cont.) 1-mi. 3-mi. 5-mi.

% 2013 Household income: $15,000 to $19,999 6.96% 6.13% 5.96%% 2013 Household income: $20,000 to $24,999 5.89% 9.01% 7.51%% 2013 Household income: $25,000 to $29,999 6.25% 5.26% 4.68%% 2013 Household income: $30,000 to $34,999 0.85% 5.34% 4.49%% 2013 Household income: $35,000 to $39,999 3.12% 4.43% 5.07%% 2013 Household income: $40,000 to $44,999 3.34% 6.49% 6.93%% 2013 Household income: $45,000 to $49,999 12.63% 6.69% 6.49%% 2013 Household income: $50,000 to $59,999 3.05% 7.34% 9.87%% 2013 Household income: $60,000 to $74,999 10.29% 10.34% 11.26%% 2013 Household income: $75,000 to $99,999 12.07% 9.06% 9.70%% 2013 Household income: $100,000 to $124,999 9.08% 9.60% 8.59%% 2013 Household income: $125,000 to $149,999 3.90% 2.37% 2.58%% 2013 Household income: $150,000 to $199,999 2.48% 1.52% 1.85%% 2013 Household income: $200,000 or more 4.40% 2.39% 2.64%

Retail Sales Volume 1-mi. 3-mi. 5-mi.

2013 Childrens/Infants clothing stores $397,311 $1,271,729 $1,926,9882013 Jewelry stores $111,437 $596,649 $952,2432013 Mens clothing stores $210,714 $885,224 $1,390,0442013 Shoe stores $399,233 $1,284,865 $1,985,8922013 Womens clothing stores $675,520 $2,739,894 $4,296,7952013 Automobile dealers $3,779,664 $14,908,378 $23,300,4882013 Automotive parts and accessories stores $1,091,221 $3,558,811 $5,423,1362013 Other motor vehicle dealers $107,965 $527,874 $815,6132013 Tire dealers $473,783 $1,554,160 $2,335,0992013 Hardware stores $9,177 $26,772 $35,6412013 Home centers $153,314 $345,165 $481,0192013 Nursery and garden centers $217,693 $492,669 $702,7792013 Outdoor power equipment stores $75,429 $261,034 $396,8132013 Paint andwallpaper stores $5,179 $21,361 $30,7992013 Appliance, television, and other electronics stores $764,240 $2,291,607 $3,438,7182013 Camera andphotographic supplies stores $126,334 $327,665 $489,3772013 Computer andsoftware stores $1,812,029 $5,825,585 $8,851,0842013 Beer, wine, and liquor stores $263,855 $964,852 $1,479,4982013 Convenience stores $1,212,693 $4,359,652 $6,774,4352013 Restaurant Expenditures $1,510,183 $4,717,493 $7,031,5372013 Supermarkets and other grocery (except convenience) stores $4,765,511 $16,360,138 $25,125,2952013 Furniture stores $552,106 $1,518,583 $2,168,5462013 Home furnishings stores $1,234,027 $3,734,259 $5,583,3692013 General merchandise stores $6,291,450 $21,231,533 $32,329,5132013 Gasoline stations with convenience stores $3,923,138 $13,606,987 $20,942,4142013 Other gasoline stations $2,842,285 $9,727,860 $14,915,8172013 Department stores (excl leased depts) $6,180,013 $20,634,883 $31,377,2692013 General merchandise stores $6,291,450 $21,231,533 $32,329,5132013 Other health and personal care stores $497,322 $1,543,471 $2,317,219

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Demographics

Retail Sales Volume (Cont.) 1-mi. 3-mi. 5-mi.

2013 Pharmacies and drug stores $1,362,224 $4,695,059 $7,167,4722013 Pet and pet supplies stores $387,137 $1,339,037 $2,023,6652013 Book, periodical, and music stores $105,280 $343,080 $522,5982013 Hobby, toy, and game stores $91,100 $334,103 $506,3482013 Musical instrument and supplies stores $15,126 $105,605 $157,2572013 Sewing, needlework, and piece goods stores $73,080 $185,005 $274,0042013 Sporting goods stores $126,515 $438,575 $662,718

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