FOR SALE Three Tenant NNN Leased Building · Bellevue Reporter, 2015's "Best Salon, Lash Extensions & Place to Buy Beauty Products," by 425 Magazine, 2015's "Best Salon for Cuts,"

Three Tenant NNN Leased Building6007 244TH STREET SW, MOUNTLAKE TERRACE, WA 98043

FOR SALE

Offering MemorandumCapital Markets | Investment Properties

CBRE, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the “Property”) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum.

This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property.

This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the “Owner”), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and CBRE, Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional

information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner.

Neither the Owner or CBRE, Inc., nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property.

The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.

By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc.

AFILIATED BUSINESS DISCLOSURE AND CONFIDENTIALITY AGREEMENT

© 2017 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility toindependently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which shouldbe evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. Photos herein are the property of their respective owners and useof these images without the express written consent of the owner is prohibited. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of theirrespective owners.

G a t e w a y P l a c e

CONTACT USConstance WildeVice President+1 206 292 [email protected]

TABLE OF CONTENTS

04 Executive Summary

07 Property Description

09 Tenant Highlights

15 Area Overview

21 Financial Overview

25 Sales Comps

EXECUTIVE SUMMARY

O F F E R I N G M E M O R A N D U M 5

G A T E W A Y P L A C E

THE OFFERING100% OCCUPIED MIXED COMMERCIAL USE ASSETPresenting the opportunity to acquire a 100% occupied three-tenant retailand medical office building. Located in Mountlake Terrace, Washingtonwith easy access to Interstate 5 and regional Sound Transit hub.

The building, constructed in 1994, is currently 100% leased to Gene JuarezAcademy, Swedish Medical Group and Axis Pharmacy. There are eightyears left on the Gene Juarez lease, and nine and one-half years on theAxis Pharmacy lease. The Swedish Medical Group’s lease expires April2018, however landlord is discussing early renewal with tenant.

OFFERING PRICE $9,276,000

Cap Rate 6.5%

Building Size 32,630 RSF

Year Built 1994

Ownership Fee Simple

Percentage Leased 100%

NOI (April 2017- March 30, 2018) $602,947



+ Recession resistant tenants− Gene Juarez Academy thrives in an expanding economy

and downturns.− Axis Pharmacy provides critical medications to group

facilities and compounded pharmaceuticals on a dailybasis for customers.

− This Swedish Medical Group Clinic is a family andgeneral practice medical care facility. It serves severalneighborhoods including Mountlake Terrace, Ballinger,parts of Edmonds and Kenmore.

INVESTMENT HIGHLIGHTS

+ Escalating rents in all leases− Gene Juarez lease escalates 9% every three years.− Shiraz, dba Axis Pharmacy, lease escalates 2.5% annually.− Swedish Medical Group will increase 2.7% in April of 2018.

+ Advantageous Location− Located at the county line of King and Snohomish Counties with direct access from I-5, the main north-south freeway for the Puget

Sound region.− The new Mountlake Terrace Transit Center provides parking for 900 vehicles. Drivers can pick up buses that serve Everett to Sea-Tac

Airport.

+ Outstanding Demographics− Within 15 minutes drive time, there are over 450,000 well-educated, upper-middle class people.

PROPERTY DISCRIPTION59th Ave W

Studio 6



PROPERTY SUMMARY

Gateway Place Association

There is a parking and management agreement as part of the original binding siteplan creating the parcels for retail and office uses that is currently administered bythe owners of each parcel. Full management agreement is available in the in duediligence folder.

ADDRESS 6607 244th Street SWMountlake Terrace, WA 98026

Total Square Feet 32,630 Rentable Sq. Ft.

Year Built 1994

Construction One-story concrete block, steel frame building

Parking±139 stalls

Over 4 per 1,000 Sq. Ft. rentable area

Acreage ±3.32 Acres (±144,619 Sq. Ft.)

Real Estate Taxes (2016) $60,897.75

Parcel Number 00520500100501

Address per Snohomish County

6007 244th Street. SWMountlake Terrace, WA 98043-5400

Zoning

FT, Freeway Tourist, City of Mountlake Terrace. This allows for a mix of primarily retail, office, and service use with a focus on regionally scaled uses.

Multi-family is allowed as part of a mixed-use development. The property is located in District B, an

area geared toward mixed-uses.

PRICE $9,276,000

Capitalization Rate 6.5%

Price Per Foot $284.56

IRR (leveraged) 11.57%

Gateway Place – approximate parcel line

TENANT HIGHLIGHTS

O F F E R I N G M E M O R A N D U M 1 0


TENANTSGENE JUAREZ ACADEMYGene Juarez Salon & Spas has ten locations throughout the Puget Soundregion. The first Gene Juarez Salon was opened by Mr. Juarez 46 yearsago in 1971 as Seattle’s first fashion salon serving best of class services,artistry and innovative haircutting techniques. Gene Juarez Salon & Spasalso operates two state of the art cosmetology schools. Since 1987Gene Juarez Academy has trained more successful cosmetologyprofessionals than any other school in the Pacific Northwest. GeneJuarez Academy at Gateway Place serves students in the northern part ofthe region and the second location in Federal Way serves the southernoriented students. The Academy which is accredited by the NationalAccrediting Commission of Career Arts and Sciences allows students toapply for Federal and State funding. Some students may go on to workat one of the Gene Juarez Salons.

Voted 2016's "Best Hairstylist" by readers of Seattle magazine, "BestFacial" in KING 5's Best of Western Washington, "Best Salon, and BestManicure and Pedicure," by 425 Magazine, 2016's "Best Salon" by theBellevue Reporter, 2015's "Best Salon, Lash Extensions & Place to BuyBeauty Products," by 425 Magazine, 2015's "Best Salon for Cuts," bySeattle magazine, 2012, 2013 and 2014's "Best Hair Color and 2015'sBest Hair Salon," by KING 5 News viewers, Modern Salon Magazine's"Salon of the Year," "Best Hair Salon in Seattle," by Allure Magazine andInStyle Magazine's "Top Spas in the United States.

Gene Juarez interior photos



Gene Juarez interior photos

GENE JUAREZ ACADEMY



TENANTSSWEDISH MEDICALSince their their beginnings in 1910, Swedish has been the region'sstandard-bearer for the highest-quality health care at the best value.Swedish is the largest nonprofit health care provider in the greater Seattlearea with five hospital campuses: First Hill, Cherry Hill, Ballard, Edmondsand Issaquah. They have ambulatory care centers in Redmond and MillCreek, and a network of more than 100 primary care and specialtyclinics throughout the greater Puget Sound area including the clinic atGateway Place. Swedish Edmonds Hospital is the 12th largest employerin Snohomish County with 1,850 employees.

Swedish is affiliated with Providence Health & Services, a Catholic, not-for-profit organization founded by the Sisters of Providence in 1856.With more than 76,000 employees, Providence operates 34 hospitalsand 475 physician clinics across five states. Based in Renton, Wash.,Providence Health & Services also provides strategic and managementservices to integrated health-care systems in Alaska, California,Montana, Oregon and Washington. For more information, visitwww.providence.org.

Swedish Medical acquired the Ballard Clinic which was the originaltenant in this location. With that acquisition and continued services bySwedish, this location has over 14 years of established medical care andwill likely continue for years to come.



TENANTSSHIRAZ, DBA AXIS PHARMACYFor more than a decade Axis Pharmacy has been a trusted communitypharmacy for Long-Term Care, Specialty Pharmaceutical Compoundingand full-service retail products. Axis utilizes specialized packaging knownas “bubble packs” which can assist caregivers in the physician directeddistribution of medications. With multiple options to choose fromincluding our most popular DisPill, singles, weekly, monthly and strippackaging. www.axispharmacynw.com.

Axis Pharmacy interior photos



Axis Pharmacy interior photos

SHIRAZ, DBA AXIS PHARMACY

AREA OVERVIEW

Gateway Place



LOCATION HIGHLIGHTSREGIONThe Puget Sound Region is shored up by a diversity of industries andemployers. Manufacturing is still a major contributor to the economicengine. Washington State exports more than any other state. Exportationof airplanes, software and agricultural/lumber products are the primaryproducts and total over $28 billion in state-originated exports. The Portsof Seattle and Tacoma combine to make the Region the second largestUS harbor for container traffic. The Region’s MSA has an estimated 3million people living in King, Pierce and Snohomish Counties.

COUNTYSnohomish County is home to over 18,500 businesses, ranging fromsmall family farms specializing in organic foods, to the world’s largestadvanced manufacturing facility producing state-of art aerospaceequipment. The fifty largest employers account for over 100,000 jobs, orabout 40% of the County’s total employment.

MOUNTLAKE TERRACEA Sound Location - Mountlake Terrace is a small city with big connections.Nestled in the Seattle metropolitan region, the city is a transportation hubwith access to three transit lines. Interstate 5 runs right through the heartof our city giving access to downtown Seattle in 20 minutes or SeaTacInternational Airport in 35 minutes. With so many local amenities andeasy access to those in the surrounding area, Mountlake Terracecontinues to increase in value and attraction in the Puget Sound region.Mountlake Terrace offers urban center access with suburban centervalues.

MOUNTLAKE TERRACE 2016 MAJOR EMPLOYERS

Employer Product/ServiceNumber of Employees

Premera Blue Cross Health Insurance 2,600

Edmonds School District Education 275

City of Mountlake Terrace Government 261

Umpqua Bank Banking 165

Note: This information is from City of Mountlake Terrace website: www.cityofmlt.com

GATEWAY TODThis new transit oriented development is under construction just north ofGateway Place and will bring 600 multifamily units and 100,000 SF ofcommercial space.



LOCATION HIGHLIGHTSMONTLAKE TERRACE TRANSIT CENTERThe Mountlake Terrace Transit Center opened in 2009. It connects local,commuter, and regional busses serving about 40,000 passengers a day.With capacity for over 1,000 cars, the Transit Center features a five-levelparking garage with 900 spaces, glass elevator, covered bus shelters,bike lockers and racks, ample lighting and closed circuit cameras.

The Mountlake Terrace Transit Center connects via covered pedestrianbridge over the freeway to Sound Transit's Freeway Station located in themedian of Interstate 5.

FREEWAY STATIONThe Sound Transit Freeway Station, located in the Interstate 5 median at236th Street SW, opened for service on Sunday, March 20, 2011.

The facility serves as a connection with the third floor of the MountlakeTerrace Transit Center garage with a covered, concrete pedestrian bridgethat crosses the northbound lanes of I-5. The station features includedirect-access bus bays for northbound and southbound routes; fullyaccessible, weather-protected passenger platforms; attractive benches;and art-enhanced glass walls to minimize freeway noise.

Sound Transit’s Express buses serve Seattle seven days a week. Thestation's unique design allows swift transit access from the freeway to thefacility, enabling transit agencies to run more frequent morning andafternoon peak, and midday and evening, service. Some CommunityTransit routes use the facility, and other Community Transit routes willcontinue to use the agency's adjacent transit center, which housespassenger drop-off areas, bicycle racks and lockers.

LYNNWOOD LINK LIGHT RAIL PROJECTIn November, 2015, the Sound Transit Board of Directors approved theLynnwood Link Extension to bring light rail service to Mountlake Terrace in2023.

Schedule Overview

Early 2016 Final design begins

Mid 2016 Station design public meeting start

Mid 2016-2017 Additional property acquisition confirmed, property owners notifies

2018 Construction begins

Late 2023 Opens for serviceNote: This information is from City of Mountlake Terrace website: www.cityofmlt.com



59th Ave W

60th Ave W

59th Place W

Future TOD Site

Studio 6



REGIONAL RETAIL LOCATIONS

Gateway Place



DEMOGRAPHICS3-Mile Radius 15-Minute Drive Time

POPULATION

2016 Estimated Population 134,892 469,129

2021 Projected Population 143,937 505,825

Growth 2016-2021 1.02% 1.34%

Daytime Worker Population 56,076 199,482

INCOME

2016 Est. Average Household Income $88,126 $90,331

2021 Proj. Average Household Income $96,920 $98,884

2016 Per Capita Income $35,998 $37,474

2016 Median Age 41.40 39.00

HOUSING

Average Value of Owner Occupied Units $401,972 $431,675

1 Unit Detached 34,538 108,967

White Collar 46,024 164,300

Blue Collar 11,149 36,977

Services 12,821 42,138

EDUCATION

2016 Estimated Population over 25 97,099 335,833

Bachelor’s Degree and Higher (%) 26.9% 28.9%

Associates Degree and Some College (%) 33.4% 32.2%

High School Diploma (%) 14.8% 14.4%

FINANCIAL OVERVIEW


G A T E W A Y P L A C ERENT ROLL

Square % of Lease Term Rental Rates

Suite Tenant Name Feet Proper ty Begin End Begin Monthly PSF Annually PSF

A2 Shiraz Specialty Pharmacy 9,170 28.13% Apr-2016 Sep-2026 Current $9,533 $1.04 $114,396 $12.48Apr-2018 $9,774 $1.07 $117,284 $12.79Apr-2019 $10,018 $1.09 $120,219 $13.11Apr-2020 $10,263 $1.12 $123,153 $13.43Apr-2021 $10,523 $1.15 $126,271 $13.77Apr-2022 $10,782 $1.18 $129,389 $14.11Apr-2023 $11,057 $1.21 $132,690 $14.47Apr-2024 $11,333 $1.24 $135,991 $14.83Apr-2025 $11,615 $1.27 $139,384 $15.20Apr-2026 $11,906 $1.30 $142,869 $15.58

A4 Gene Juarez Academy 16,082 49.33% Jun-2012 Dec-2027 Current $28,050 $1.74 $336,596 $20.93Jan-2019 $30,569 $1.90 $366,830 $22.81Jan-2022 $33,317 $2.07 $399,799 $24.86Jan-2025 $36,319 $2.26 $435,822 $27.10

A6 Gene Juarez Academy (Off ice) 1,304 4.00% Jan-2013 Dec-2027 Current $2,274 $1.74 $27,293 $20.93Jan-2019 $2,479 $1.90 $29,744 $22.81Jan-2022 $2,701 $2.07 $32,417 $24.86Jan-2025 $2,945 $2.26 $35,338 $27.10

B Swedish Medical Group 6,042 18.53% Feb-2013 Apr-2018 Current $10,221 $1.69 $122,653 $20.30May-2017 $10,503 $1.74 $126,036 $20.86

B Swedish Medical Group 6,042 18.53% May-2018 Apr-2023 FUTURE $10,793 $1.79 $129,513 $21.44RENEW May-2019 $11,092 $1.84 $133,105 $22.03

May-2020 $11,394 $1.89 $136,730 $22.63May-2021 $11,711 $1.94 $140,537 $23.26May-2022 $12,034 $1.99 $144,404 $23.90

Notes:Assumes tenant renews at continued terms with no leasing costs.

TOTALS / AVERAGES 32,598 $50,078 $1.54 $600,938 $18.43

OCCUPIED SqFt 32,598 100.0%VACANT SqFt 0 0.0%

TOTAL SqFt 32,598 100.0%

WEIGHTED-AVERAGE LEASE TERM REMAINING: 8.60 YearsWEIGHTED-AVERAGE LEASE TERM LAPSED: 3.61 YearsWEIGHTED-AVERAGE LEASE TERM FROM INCEPTION: 12.21 Years



Fiscal Year Ending - March 31 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Physical Occupancy 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Overall Economic Occupancy [1] 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 99.80% 100.00% 100.00% 99.82% 100.00%

Weighted Average Market Rent $18.24 $18.79 $19.36 $19.94 $20.53 $21.15 $21.79 $22.44 $23.11 $23.81 $24.52

Weighted Average In P lace Rent [2] $18.53 $18.97 $19.93 $20.13 $20.61 $21.65 $21.80 $22.35 $23.44 $23.60 $23.98

Total Operating Expenses PSF Per Year $5.95 $6.13 $6.32 $6.50 $6.69 $6.90 $7.09 $7.30 $7.53 $7.74 $7.96

[3]FY 2018

REVENUES $/SF/YRScheduled Base Rent

Gross Potential Rent $18.53 $604,039 $618,540 $649,550 $656,220 $671,978 $705,735 $712,486 $728,541 $764,160 $771,074 $781,550Absorption & Turnover Vacancy 0.00 0 0 0 0 0 0 0 0 0 0 0Base Rent Abatements 0.00 0 0 0 0 0 0 (1,849) 0 0 (1,795) 0

Total Scheduled Base Rent 18.53 604,039 618,540 649,550 656,220 671,978 705,735 710,637 728,541 764,160 769,279 781,550

Expense Reimbursements 5.92 192,917 198,443 204,002 207,306 213,383 220,256 226,304 232,960 240,435 247,009 254,061

TOTAL GROSS REVENUE 24.45 796,956 816,983 853,552 863,526 885,361 925,991 936,941 961,501 1,004,595 1,016,288 1,035,611General Vacancy Loss 0.00 0 0 0 0 0 0 0 0 0 0 0

EFFECTIVE GROSS REVENUE 24.45 796,956 816,983 853,552 863,526 885,361 925,991 936,941 961,501 1,004,595 1,016,288 1,035,611

OPERATING EXPENSESCommon Area Expenses (0.76) (24,616) (25,353) (26,115) (26,897) (27,705) (28,537) (29,392) (30,274) (31,182) (32,117) (33,081)Association CAM Expense (0.30) (9,853) (10,149) (10,453) (10,767) (11,090) (11,423) (11,765) (12,118) (12,482) (12,856) (13,242)Repairs & Maintenance (0.47) (15,461) (15,924) (16,402) (16,895) (17,402) (17,924) (18,461) (19,015) (19,586) (20,173) (20,778)Utilities (1.17) (38,293) (39,442) (40,625) (41,844) (43,099) (44,393) (45,724) (47,097) (48,510) (49,963) (51,463)Management Fee (0.86) (27,893) (28,594) (29,874) (30,223) (30,988) (32,410) (32,793) (33,653) (35,161) (35,570) (36,246)Insurance (0.33) (10,636) (10,955) (11,284) (11,622) (11,971) (12,330) (12,700) (13,081) (13,473) (13,877) (14,294)Real Estate Taxes (1.94) (63,195) (65,091) (67,044) (69,055) (71,127) (73,261) (75,459) (77,722) (80,054) (82,456) (84,929)HVAC Maintenance (NR) (0.12) (4,062) (4,184) (4,310) (4,439) (4,572) (4,709) (4,851) (4,996) (5,146) (5,300) (5,459)

TOTAL OPERATING EXPENSES (5.95) (194,009) (199,692) (206,107) (211,742) (217,954) (224,987) (231,145) (237,956) (245,594) (252,312) (259,492)

NET OPERATING INCOME 18.50 602,947 617,291 647,445 651,784 667,407 701,004 705,796 723,545 759,001 763,976 776,119

CAPITAL COSTSTenant Improvements 0.00 0 0 0 0 0 0 (41,483) 0 0 (68,797) (120,331)Leasing Commissions 0.00 0 0 0 0 0 0 (24,186) 0 0 (23,480) (77,024)Capital Reserves (0.20) (6,568) (6,766) (6,969) (7,178) (7,393) (7,615) (7,843) (8,078) (8,321) (8,570) (8,828)

TOTAL CAPITAL COSTS (0.20) (6,568) (6,766) (6,969) (7,178) (7,393) (7,615) (73,512) (8,078) (8,321) (100,847) (206,183)

OPERATING CASH FLOW $18.29 $596,379 $610,525 $640,476 $644,606 $660,014 $693,389 $632,284 $715,467 $750,680 $663,129 $569,936

ACQUISITION & RESIDUAL SALEAcquisition Cost ($9,276,000) 0 0 0 0 0 0 0 0 0 0 All CashNet Residual Value [4] 0 0 0 0 0 0 0 0 0 0 10,311,295 IRR

CASH FLOW BEFORE DEBT ($9,276,000) $596,379 $610,525 $640,476 $644,606 $660,014 $693,389 $632,284 $715,467 $750,680 $10,974,424 7.82%

MARKET LOAN [5]Loan Funding / Payoff 6,029,400 0 0 0 0 0 0 0 0 0 (4,419,291)Loan Fees (90,441) 0 0 0 0 0 0 0 0 0 0 LeveragedAnnual Debt Service 0 (412,496) (412,496) (412,496) (412,496) (412,496) (412,496) (412,496) (412,496) (412,496) (412,496) IRR

CASH FLOW AFTER DEBT ($3,337,041) $183,883 $198,029 $227,980 $232,110 $247,518 $280,893 $219,788 $302,971 $338,184 $6,142,637 11.57%

NOI Return 6.50% 6.65% 6.98% 7.03% 7.19% 7.56% 7.61% 7.80% 8.18% 8.24%

UNLEVERAGED Cash Return 6.43% 6.58% 6.90% 6.95% 7.12% 7.48% 6.82% 7.71% 8.09% 7.15%

LEVERAGED Cash Return 5.51% 5.93% 6.83% 6.96% 7.42% 8.42% 6.59% 9.08% 10.13% 7.51%

Debt Service Coverage Ratio (NOI) 1.46x 1.50x 1.57x 1.58x 1.62x 1.70x 1.71x 1.75x 1.84x 1.85xDebt Service Coverage Ratio (CF) 1.45x 1.48x 1.55x 1.56x 1.60x 1.68x 1.53x 1.73x 1.82x 1.61x

Rolling - All Cash IRR N/M 2.92% 4.51% 5.69% 6.84% 7.02% 7.28% 7.77% 7.80% 7.82%Rolling - Leveraged IRR N/M N/M 3.16% 6.64% 9.69% 10.12% 10.67% 11.65% 11.61% 11.57%

[1] This figure takes into account vacancy/credit loss, absorption vacancy, turnover vacancy, and base rent abatements.[2] This figure does not include any amount related to expense reimbursements. Only Scheduled Base Rent and Fixed/CPI Increases are included in this calculation, which is based on the weighted-average physical occupancy during each fiscal year.[3] Based on 32,598 square feet.[4] Net Residual Value is calculated by dividing Year 11 NOI by the Residual Cap Rate of 7.00% and applying a 7.00% Cost of Sale.[5] Market Debt based on 65% Loan-to-Value, 4.75% Interest Rate, 25-Year Amortization, and 1.50% Loan Fee.

CASH FLOW PROJECTIONS



FINANCIAL INFOPROPOSED LOAN SUMMARY

Loan Amount Up to 65% LTV

Amortization 25 Years

Term 10 Years

Interest Rate Range 4.75%

Source Bank or Life Co

CONTACT INFORMATIONDavid StinebaughSenior Vice PresidentCBRE Capital Markets1420 5th Avenue, Floor 17Seattle, WA 98101

+1 206 [email protected]

59th Ave W

Studio 6

SALES COMPSProperty Bldg. Size

Land SizeDate Sold

AgeQuality/

ConditionPrice/

Price Per SFCap Rate Comments

1.Sawyer Village27203 216th Avenue SEMaple Valley, WA 98038

29,315 SF(1.23 Acres)

12/15/20157 years

Very Good$11,850,000

$404.236.5%

Medical office & retail buildings.100% occupied. Valley Medical and several shop tenants of sole proprietor caliber.

2. Center Plaza2016 – 2104 S. 320th Street Federal Way, WA 98003

74,032SF(7.74 Acres)

7/17/201536 years

Good$14,270,000

$184.006.58%

Strip retail center comprised of 7 buildings, all perpendicular to arterial across from secondary mall. 90% occupied at time of sale. Buyer was 1031.

3.Totem Hill12305 120th Avenue NEKirkland, WA 98034

26,081 SF(6.29 Acres)

4/22/2015 Good$8,300,000

$318.245.75%

Located south of Fred Meyer, secondary location. Small shop tenants only.

4.Stanwood Retail26905 92nd Avenue NWStanwood, WA 98292

28,400 SF(0.63 Acres)

10/7/20161 year

Excellent$8,300,000$40292.25

6.29%New 2-tenant retail center with Grocery Outlet & Petco. Secondary market. Building sits perpendicular to arterial.

5.Snoqualmie Mixed Use37624 Snoqualmie Parkway SESnoqualmie, WA 98065

31,532 SF(2.10 Acres)

10/9/20159 years

Excellent$9,900,000

$313.976.50%

Swedish Medical Center occupied 16,932 SF office building. Two retail buildings were 15% vacant. Snoqualmie is very affluent secondary market.



SOUTH PUGET SOUND

Property

1.Sawyer Village

2. Center Plaza

5.Snoqualmie Mixed Use



NORTH PUGET SOUND

Property

3. Totem Hill

4.Stanwood Retail

Gateway Place6007 244TH STREET SW, MOUNTLAKE TERRACE, WA 98043

FOR SALE

Offering MemorandumCapital Markets | Investment Properties

© 2017 CBRE, Inc. The information contained in this document has been obtained from sourcesbelieved reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it andmakes no guarantee, warranty or representation about it. It is your responsibility to independentlyconfirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used arefor example only and do not represent the current or future performance of the property. The value ofthis transaction to you depends on tax and other factors which should be evaluated by your tax,financial and legal advisors. You and your advisors should conduct a careful, independentinvestigation of the property to determine to your satisfaction the suitability of the property for yourneeds. Photos herein are the property of their respective owners and use of these images without theexpress written consent of the owner is prohibited. CBRE and the CBRE logo are service marks ofCBRE, Inc. and/or its affiliated or related companies in the United States and other countries. Allother marks displayed on this document are the property of their respective owners.

CONTACT US

Constance WildeVice President+1 206 292 [email protected]

Documents

FOR SALE Three Tenant NNN Leased Building · Bellevue Reporter, 2015's "Best Salon, Lash Extensions & Place to Buy Beauty Products," by 425 Magazine, 2015's "Best Salon for Cuts,"