PowerPoint Presentation · 20 Avg. 4.56% 0.0 0.6 1.2 1.8 2.4 3.0 3.6 4.2 4.8 5.4 6.0 3257 SE Hawthorne Blvd J&H Market Building Zoom+ Care Building Ezra Building 3621-3623 SE Hawthorne

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Marcus & Millichap has been chosen to exclusively market for sale the Tarboush Bistro Building located inSoutheast Portland’s Sunnyside neighborhood. The building is wood construction and consists of approximately5,000 square feet of gross leasable area situated on a 0.10-acre parcel of land. The property is zoned CentralEmployment (CM2), which allows for a variety of uses including retail, office and residential. The property iscurrently lease to Tarboush Bistro, an office tenant and a two-bedroom apartment. There is off-street parkingand outdoor patio space. The tenants each have the right to use one parking space as per the lease.

The office space is currently vacant. The space was previously leased out to a group that sourced debt forinternational students. Market rent for the office suite is $26.00 NNN per square foot.

The apartment is currently leased. Market rent for the two-bedroom apartment is $1,800 per month.

Tarboush Bistro’s current rent is more than 50% below market, however in 2020 they have one 5-year option torenew with 3% annual increases. If Tarboush does not renew or after their option expires, then an investor canbring their lease to market rate. Once the building is fully stabilized, an investor could expect a cap rate ofapproximately 8.00%

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Assumed COE: 4/1/2020

Current GLA BldgLease Dates

Annual

Rent Per Lease

Current

Total Rent

Current

Total Rent

Current

Annual Expense

Proforma

Rent Per

Proforma

Total Rent

Proforma

Total Rent

Proforma

Annual Expense

Renewal Options

and Option Year

Tenant Name Use (SF) Share Comm. Exp. Sq. Ft. Type Per Month Per Year Reimbursements Sq. Ft. Per Month Per Year Reimbursements Rental Information

Tarboush Lebanese Bistro Retail 3,000 60% 6/1/10 5/30/20 $12.48 NNN $3,121 $37,447 $15,770 $28 NNN $4,800 $57,600 $15,770 5 Year Option @ 3% Inc.

2 BR / 1 BA Apartment Apt. 1,100 22% MTM MTM $1.27 Gross $1,400 $16,800 $0……. $1.64 MG $1,800 $21,600 $600 None

Vacant Office Office 900 18% N/A N/A $0.00 N/A $0 $0 $0……. $26 NNN $1,950 $23,400 $6,732 None

Total: 5,000 100% $13.15 $5,478 $65,731 $16,673 $25.80 $10,750 $129,000 $24,462

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Notes to Operating Statement

[1] Tarboush currently reimburses Landlord for 60% of all operating expenses. See Note #5.

[2] Proforma uses a 5% vacancy factor.

[3] Garbage for apartment and common area electricity.

[4] Repairs & maintenance expense reflects two-year average.

[5] Tarboush reimburses Landlord for 100% of Security Protection expense.

[6] Actual insurance expense incurred by Landlord.

[7] Management fee assumed to be equal to 4% of Effective Gross Income (market rate).

Income Current Per SF Proforma Per SF Notes

Scheduled Base Rental Income $77,647 $15.53 129,000 25.80

Expense Reimbursement Income [1]

CAM $7,345 $1.47 9,297 1.86

Insurance $2,429 $0.49 2,502 0.50

Real Estate Taxes $8,220 $1.64 8,114 1.62

Management Fees $2,185 $0.44 4,549 0.91

Total Reimbursement Income $20,179 $4.04 $24,462 80.8% $4.89

Potential Gross Revenue $97,826 $19.57 153,462 30.69

General Vacancy ($27,809) -28.43% ($5.57) (7,673) 5.0% (1.53) [2]

Effective Gross Revenue $70,017 $14.00 $145,789 $29.16

Operating Expenses Current Per SF Proforma Per SF Notes

Common Area Maintenance (CAM)

Utilities $2,301 $0.46 $2,301 $0.46 [3]

Landscape Maintenance $774 $0.15 $774 $0.15

Repairs & Maintenance $4,965 $0.99 $4,965 $0.99 [4]

Security Protection $1,074 $0.21 $1,074 $0.21 [5]

Insurance $3,114 $0.62 $3,114 $0.62 [6]

Real Estate Taxes $10,538 $2.11 $10,538 $2.11

Management Fee $2,801 4.0% $0.56 $5,780 4.0% $1.16 [7]

Total Expenses $25,567 $5.11 $28,546 $5.71

Net Operating Income $44,451 $8.89 $115,951 $23.19

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Summary Operating Data

Price $1,450,000

Down Payment $900,000 60% Income Current Proforma

Number of Suites 4 Scheduled Base Rental

Income$77,647 $129,000

Price Per SqFt $290.00 Total Reimbursement Income $20,179 $23,102

Gross Leasable Area (GLA) 5,000 SF Other Income $0 $0

Lot Size 0.10 Acres Potential Gross Revenue $97,826 $152,102

Year Built/Renovated 1891 General Vacancy ($27,809) ($7,605)

Occupancy 82.00% Effective Gross Revenue $70,017 $144,497

Less: Operating Expenses ($25,567) ($28,546)

Net Operating Income $44,450 $115,951

Returns Current Proforma

CAP Rate 3.07% 8.00%

Operating Expenses Current Proforma

CAM $9,114 $9,114

Insurance $3,114 $3,114

Real Estate Taxes $10,538 $10,538

Management Fee $2,801 $5.780

Total Expenses $25,567 $28,546

Expenses/SF $5.11 $5.71

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Restaurant

Office

Apartment

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TARBOUSH BISTRO BUILDING

(SUBJECT)

J&H Market Building

Zoom Care + Building

Ezra Building

3621-3623 SE Hawthorne Blvd

Cleaners Drapery Building

SALES COMPARABLES

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5

20

Avg. 4.56%

0.0

0.6

1.2

1.8

2.4

3.0

3.6

4.2

4.8

5.4

6.0

3257 SE

Hawthorne

Blvd

J&H Market

Building

Zoom+ Care

Building

Ezra

Building

3621-3623

SE

Hawthorne

Blvd

Cleaners

Drapery

Building

Average Cap Rate

Avg. $479.59

$0.00

$70.00

$140.00

$210.00

$280.00

$350.00

$420.00

$490.00

$560.00

$630.00

$700.00

3257 SE

Hawthorne

Blvd

J&H Market

Building

Zoom+ Care

Building

Ezra

Building

3621-3623

SE

Hawthorne

Blvd

Cleaners

Drapery

Building

Average Price Per Square Foot

SALES COMPARABLES SALES COMPS AVG

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PROPERTY NAME

MARKETING TEAM

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Tenants Lease Type

Subject Property: Tarboush Bistro NNN

Asking Price: $1,500,000 Institute for Global MG

Price/SF: $300 2 Bdr / 1 Bath Apt MG

CAP Rate: 3.69%

Proforma CAP: 7.70%

Year Built: 1891

Zoning: CM2

TARBOUSH BISTRO BUILDING3257 SE Hawthorne Blvd, Portland, OR 97214

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Tenants Lease Type

Close of Escrow: 8/24/2016 Zoom+ Care NNN

List Price: $1,670,000 Wildish Botanicals NNN

Price/SF: $418

CAP Rate: 4.50%

Proforma CAP: 6.78%

Year Built: 1946

Zoning: CM2

J&H MARKET BUILDING3953 SE Hawthorne Blvd, Portland, OR 97214

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ZOOM+ CARE BUILDING3321 SE Hawthorne Blvd, Portland, OR 97214

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NOTES

The Buyer was in a 1031 Exchange. He was local, and he paid all

cash. 21 day Close. ***URM Building***

NOTES

The Buyer was an investor from California. The in place rents

were below market.

Tenants Lease Type

Close of Escrow: 10/24/2018 Bike Shop MG

List Price: $1,250,000 Vacant Suite N/A

Price/SF: $439 Spruce Salon MG

CAP Rate: 3.09%

Proforma CAP: 6.30%

Year Built: 1911

Zoning: CM2

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PROPERTY NAME

MARKETING TEAM

rentpropertyaddress1

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Tenants Lease Type

Close of Escrow: 11/2/2018 Brow Experts MG

List Price: $975,000 I Am That MG

Price/SF: $492

CAP Rate: 5.19%

Year Built: 1956

Zoning: CM2

3621-3623 SE HAWTHORNE BLVDPortland, OR, 97214

NOTES

The Buyer was a local investor in a 1031 Exchange. He sold an

apartment building in Southwest Portland to purchase this

property.

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Tenants Lease Type

Close of Escrow: 8/31/2018 Suzette NNN

List Price: $2,150,000 Circa 33 NNN

Price/SF: $620

CAP Rate: 4.98%

Year Built: 1923

Zoning: CM2

CLEANERS DRAPERY BUILDING3342 SE Belmont St, Portland, OR, 97214

NOTES

The Buyer was in a 1031 Exchange. He was from California. He

sold a Chase Bank in Texas to fund this purchase.

rentpropertyaddress1

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Tenants Lease Type

Close of Escrow: 3/16/2018 Brow Experts MG

List Price: $3,000,000 I Am That MG

Price/SF: $425

CAP Rate: 5.02%

Year Built: 1923

Zoning: CM2

EZRA BUILDING3500-3518 SE Hawthorne Blvd, Portland, OR, 97214

NOTES

The Buyer was in a 1031 Exchange. He was from California, and

he paid all cash. ***URM Building***

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TARBOUSH BISTRO BUILDING

(SUBJECT)

El Cubo de Cuba

Fujin Building

Frances Building

3621-3623 SE Hawthorne Blvd

J&H Market Building

LEASE COMPARABLES

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LEASE COMPARABLES

AVERAGE RENT PER SQUARE FOOT

Avg. $34

$0

$4

$9

$13

$17

$22

$26

$30

$34

$39

$43

3257 SE

Hawthorne

Blvd

El Cubo

de Cuba

Fujin

Buliding

Frances

Building

3621 SE

Hawthorne

Blvd

J&H Market

Building

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PROPERTY NAME

MARKETING TEAM

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TARBOUSH BISTRO BUILDING3257 SE Hawthorne Blvd, Portland, OR 97214

OCCUPANCY: 100% | YEAR BUILT: 1942 | ZONING: CM2

Total GLA Signed Rent/SF

5,500 SF $42.00 NNN

MAJOR TENANTS

El Cubo de Cuba

Mud Bay

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El Cubo de CubaPortland, OR, 97214



15,504 SF $33.50 NNN

MAJOR TENANTS

Rice Junkies

Fried Egg I’m In Love

Chez Machin

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FUJIN BUILDING 3541-3545 SE Hawthorne Blvd, Portland, OR, 97214

Total GLA Average Rent/SF

5,000 SF $11.07 NNN


MAJOR TENANTS

Tarboush Bistro

IPSL: Institute for Global Learning

2 Bdr / 1 Bath Apt

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PROPERTY NAME

MARKETING TEAM

.

rentpropertyaddress1 rentpropertyaddress1


Total GLA Available SF Signed Rent/SF

14,915 SF 3,756 SF $32.70 NNN

MAJOR TENANTS

Echo Theater

Harlow Cuisine

Portland Cider Co.

Rachel's Ginger Beer

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FRANCES BUILDING3632 SE Hawthorne Blvd, Portland, OR, 97214



1,980 SF $29.54 NNN

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3621-3623 SE HAWTHORNE BLVDPortland, OR, 97214


Total GLA Available SF Signed Rent/SF

2,825 SF 1200 SF $32.25 NNN

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J&H MARKET BUILDING3953 SE Hawthorne Blvd, Portland, OR, 97214

MAJOR TENANTS

Brow Experts

I Am That

MAJOR TENANTS

Bike Shop

Hair Salon

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Documents

PowerPoint Presentation · 20 Avg. 4.56% 0.0 0.6 1.2 1.8 2.4 3.0 3.6 4.2 4.8 5.4 6.0 3257 SE Hawthorne Blvd J&H Market Building Zoom+ Care Building Ezra Building 3621-3623 SE Hawthorne