| EXCLUSIVE OFFERING a Berkshire Hathaway and Leucadia ... · Berkadia Real Estate Advisors LLC and...

15560 Westminster Way NorthShoreline, WA 98133

For Real-Time Property Information go to:PotalaPlace.BerkadiaREA.com

DAVID SORENSENAssociate [email protected]

BEN [email protected]

KENNY DUDUNAKISSenior Managing [email protected]

| EXCLUSIVE OFFERING a Berkshire Hathaway and Leucadia National company

324 Units | Built: 2017 | Un riced Offering

JEFF STUART | Managing Director | 206.801.3069 | [email protected]

FINANCING




INVESTMENT ADVISORS

324-Unit Mixed-Use Development Site

Less Than Three Miles from a Planned Light Rail Station

Easy Access to Retail and Mass Transportation

Submarket Vacancy Rate of 2%

10 Miles to Downtown Seattle

Seattle Rents Projected to Increase 7.2% in 2016

For Real-Time Property InformationScan QR Code or go to:PotalaPlace.BerkadiaREA.com

PROPERTY HIGHLIGHTS

Original CompletionPlanned for July 2017

Market Positioning 14

The Market 23

The Opportunity 5

The Asset 7

Financial Analysis 12

TABLE OF CONTENTS

IMAGES PROVIDED BY CARON ARCHITECTURE

Seattle - 2015 #1: City in U.S. to find a job – Wallet Hub 2015 #1: Fastest-growing big city in the U.S. – U.S. Census Bureau #1: Highest job growth for small businesses in the U.S. - Paychex #1: Nation’s most sustainable city – STAR communities #2: Best city for recent college graduates - nerdwallet.com #3: Highest median salary in the country – Forbes #4: Richest city in the U.S. – USA Today #5: Fastest growing city in the U.S. – Forbes #5: Best U.S. cities for tech startups – Entreprenuer.com

Urban Oasis Located in the Sought after NorthSeattle Neighborhood of Shoreline

Seattle is one fastest developing submarkets on the West Coast.Remarkably designed.Walk Score of 78 – “Very Walkable” Westside location.Surrounded by local amenities and less than one mile from I-5 and three miles from the future light rail stop.

Designed for Growing Millennial PopulationMillennials are moving to Seattle in droves and looking for apartments that fit their needs and tastes.Expansive community areas and well-designed floor plans, with clean modern finishes will be highly sought after by residents.

A Rapidly Growing Neighborhood in the Heart ofSeattle’s Growth Plans

Future Northgate and 130th light rail stops within three miles of the development site, 15 minute commute to Downtown Seattle.The close proximity to I-5, SR-99 and the future light rail station provides premier access to employment drivers throughout the region.

One of the Tightest Markets in the NationShoreline is currently experiencing 2.0% market vacancy per Dupre + ScottThe five year market vacancy is 2.69%Market rents in the North Seattle submarket have increased 32.8% since 2011

Well Positioned between King and SnohomishCounties Economic Growth

Leading technology, medical, marketing, and financial jobs nearby.Major employment hubs Seattle, Lynnwood, Bothell, and Everett all less than 20 miles from the development site.

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THE OPPORTUNITY

5PotalaPlace.BerkadiaREA.com

In City building permit review

Administrative design review was conditionally approved

Caron anticipates to submit round of correction in August

Project is vested in without mitigation fee, saving Buyer approximately $1.5

million

Buyer needs to finalize land swap with the City and negotiate off-site

improvements

Anticipate project could be shovel ready in Fall 2016

Potala Place ShorelineDevelopment Opportunity

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The podium development site is located in the North Seattle submarket of Shoreline, with a population of almost 230,000

residents, while the greater Seattle MSA is home to over 3.5 million people. The convenient access to Interstate 5 and State Route

99 will create an easy commute to thousands of jobs across the Puget Sound Region. Multiple top 50 Fortune 500 companies,

strong rent-growth, low unemployment rates, and limited land in the greater Seattle area have helped make it one of the premier

investment locations in the country.

Shoreline currently displays an extremely low vacancy rate of 2.0%, while over the past five years, market rents have increased

32.8%. The development site is situated ten miles north of the Seattle central business district and is surrounded by strong job

growth, retail, and schools. The nearly two-acre development site could feature a potential unit mix including 55 studios, 65 open

one-bedrooms, 140 standard one-bedrooms, and 64 two-bedroom units. This unit mix would range from 500 - 1,040 square

feet, providing options for a wide variety of tenants.

The project will include two mid-rise residential towers above a single concrete podium. An internal podium level landscaped

courtyard creates an outdoor space for the residents allowing fresh air and privacy. Other amenities include a clubhouse, fitness

center, BBQ area, dog walk, and bicycle repair / parking. Sustainable design strategies are employed and considered throughout

the building from material selection to construction waste.

PROPERTY DESCRIPTION

Units: 324

Year Built: 2017

Parking: 297

Total SF: 231,385

Average Unit SF: 714±

Site Acreage: 1.87±

Parcel Number(s): 1826049453,

1826049081,

1826049454,

1826049452

Type of Buildings: Two Mid-Rise

Market Rent: $1,696

Rent / SF: $2.37

PROPERTY SUMMARY

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PARCEL AERIAL

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Major Employers WithinMinutes from Potala Place Shoreline

Potala Place Shoreline is conveniently located near the intersection of Westminster Way North and North 155th Street,

approximately ten miles from downtown Seattle. The property is situated within the city of Shoreline's Aurora Square

Community Renewal Area. Interstate 5 is less than two miles from Potala Place Shoreline, providing easy access to

shopping, dining, and employment centers throughout the Seattle metro area.

Neighborhood shopping conveniences include: Central Market Shoreline and WinCo Foods.

Major shopping centers include:

Aurora Square, a 38,030 square foot shopping center, is located next door to the property. Marshalls, Sears, Pier 1

Imports, and Central Market Shoreline are some of the notable tenants.

Northgate Mall, located less than four miles from the property, is a one million-square-foot retail destination with

over 130 stores. Anchors include: JC Penney, Macy's and Nordstrom.

Alderwood Mall, located less than eight miles from the property, with over 1.3 million square feet is anchored by

Macy's, Nordstrom, Sears, and JC Penny.

Other nearby are shopping centers include: University Village (H&M, Anthropologie, J. Crew, and Starbucks), Pacific

Place (Barnes & Noble, Barneys New York, and Tiffany & Co.), and Westlake Center (Macy's and Nordstrom).

LOCATION DESCRIPTION

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POINTS OF INTEREST AERIAL

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15560 WESTMINSTER WAY NORTH

SHORELINE, WA 98133

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Unit Mix & Rent Schedule Unit Total Market Monthly Annual Units Type SF SF Rent Mkt. Rent Mkt. Rent Rent/SF 55 Studio 500 27,500 $1,305 $71,775 $861,300 $2.61 65 Open 1 Bed 605 39,325 $1,515 $98,475 $1,181,700 $2.50 140 1 Bed/1 Bath 700 98,000 $1,705 $238,700 $2,864,400 $2.44 64 2 Bed/2 Bath 1,040 66,560 $2,195 $140,480 $1,685,760 $2.11 324 714 231,385 $1,696 $549,430 $6,593,160 $2.37

BerkadiaIncome Pro FormaScheduled Market Rent $6,593,160 Less: Vacancy 5.00% ($329,658) Less: Non-Rev/Bad Debt/Adjust 0.25% ($16,483)Net Rental Income $6,247,019

Plus: Commercial Income $37,995 Less: Commercial Vacancy ($3,800) Plus: Parking Income $248,805 Plus: RUBS Income $291,600 Plus: Other Income $194,400Total Operating Income (EGI) $7,016,020

Expenses Per Unit Administrative $201 $65,000 Advertising & Promotion $176 $57,000 Payroll $1,326 $429,500 Repairs & Maintenance/Turnover $401 $130,000 Management Fee 2.50% $541 $175,400 Utilities $1,201 $389,000 Contracted Services $309 $100,000 Real Estate Taxes $2,984 $966,654 Insurance $201 $65,000 Replacement Reserve $200 $16,000Total Expenses $2,393,554

Per Unit: $7,388 Per SF: $10.34

Net Operating Income $4,622,465

IMPORTANT INFORMATION & DISCLAIMER: The information contained herein is assumed to be correct and market-supported. Output produced from this model should not be considered an appraisal. Projections are forecasts and are not to be considered fact. The information contained in this file is privileged and confidential; it is intended only for use by Berkadia® and their clients. This file may not be reproduced physically or in electronic format without the expressed written consent of Berkadia. CAUTION: Security codes have been included into this file and unauthorized use may render this file useless. Berkadia® employees, affiliates, and contractors are instructed to hard-code this model for reproduction and distribution. Not responsible for errors and omissions.

© 2016 Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Berkadia® and Berkadia Commercial Mortgage® are trademarks of Berkadia Commercial Mortgage LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. In California, Berkadia Real Estate Advisors Inc. conducts business under CA Real Estate Broker Lic. #01931050, Berkadia Commercial Mortgage LLC under CA Finance Lender & Broker Lic. #998-0701, Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116. For state licensing details for the above entities, visit: www.berkadia.com/legal/licensing.aspx

All Rights Reserved. DRAFT REPORT: Privileged & Confidential, For Discussion Purposes Only.

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FINANCIAL ANALYSIS

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INCOME ASSUMPTIONS

Scheduled Market Rent: Pro Forma Scheduled Market Rent is based on analysis of trends in the North Seattle / Shoreline rental markets, the rents received at comparable properties, and data from apartment research firm Dupre + Scott.

Shorelineo Assets 2010 and newer in Shoreline have received, on average, $1.82 per square

foot and $1,422 in total monthly rents.

o Market rents increased 12.80% over the past 24 months.

Vacancy: Pro Forma Vacancy is underwritten at 5.00% of Gross Potential Rent, per industry standard. The overall Vacancy for the Shoreline market is roughly 2.0%, per data from apartment research firm Dupre + Scott.

Concessions: Pro Forma Concessions are underwritten at 0% of GPR to reflect the operations at the property post-stabilization. The vast majority of comparable properties in the Shoreline / North Seattle market have not recently offered Concessions nor are they currently offering Concessions.

Non-Revenue / Bad Debt / Adjustments: Pro Forma Non-Revenue / Bad Debt / Adjustments are underwritten at 0.25% of GPR.

Commercial Income: Pro Forma Commercial Income and CAM is underwritten at $15 per square foot per year and assumes that there will be 2,533 square feet of retail space. This model assumes 10% Vacancy although the actual Vacancy is likely to be lower in this location. Also, 6 of the 297 parking spaces will be dedicated to the retail tenants.

Parking Income: Pro Forma Parking Income is underwritten at $808 per unit or $67 per month and this number is based upon Berkadia research. This model assumes the 291 residential spaces will be rented at $75 per month at a utilization rate of 95%.

RUBS Income: Pro Forma RUBS is underwritten at $900 per unit or $75 per month and this number is based upon Berkadia research.

Other Income: Pro Forma Other Income is underwritten at $600 ($50 / month) per unit. Notable items are likely to include storage revenue, month-to-month premiums and pet rent.

EXPENSE ASSUMPTIONS

Expense: Pro Forma Expenses are based on Berkadia research and data from apartment research firm Dupre + Scott.

Property Taxes: Pro Forma Property Taxes are underwritten at $2,952 per unit. This is based on an estimated post-stabilization assessed value of 85% of $90,720,000 ($280,000 per unit) and the current millage rate of 11.70.

Replacement Reserves: The Pro Forma Replacement Reserve is underwritten at $200 to reflect the vintage and quality of the property.

IMPORTANT INFORMATION & DISCLAIMER: The information contained herein is assumed to be correct and market-supported. Output produced from this model should not be considered an appraisal. Projections are forecasts and are not to be considered fact. The information contained in this file is privileged and confidential; it is intended only for use by Berkadia® and their clients. This file may not be reproduced physically or in electronic format without the expressed written consent of Berkadia. CAUTION: Security codes have been included into this file and unauthorized use may render this file useless. Berkadia® employees, affiliates, and contractors are instructed to hard-code this model for reproduction and distribution. Not responsible for errors and omissions. © 2016 Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Berkadia® and Berkadia Commercial Mortgage® are trademarks of Berkadia Commercial Mortgage LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. In California, Berkadia Real Estate Advisors Inc. conducts business under CA Real Estate Broker Lic. #01931050, Berkadia Commercial Mortgage LLC under CA Finance Lender & Broker Lic. #998-0701, Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116. For state licensing details for the above entities, visit: www.berkadia.com/legal/licensing.aspxAll Rights Reserved. DRAFT REPORT: Privileged & Confidential, For Discussion Purposes Only.

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NOTES TO PRO FORMA


COMPARABLE SALE PROPERTIES

714Avg SF:Unpriced OfferingPrice:

324Units:

Potala Place Shoreline15560 Westminster Way NorthShoreline, WA 98133

– Subject

4.40%Cap Rate:03/16Closed:

870Avg SF:$282.77Price / SF:

$246,084Price / Unit:$94,250,000Sold For:

2014Built:383Units:

Tivalli15707 Ash WayLynnwood, WA 98087




2014Built:111Units:

Vue3261 SW Avalon WaySeattle, WA 98126




2014Built:203Units:

Six Oaks18333 Bothell Way NEBothell, WA 98011




2014Built:112Units:

Square One1020 NE 63rd StreetSeattle, WA 98106

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COMPARABLE SALE PROPERTIES - GRAPHS

350

306,250

262,500

218,750

175

131,250

87,500

43,750

0

Tiva

lli |

$24

6,08

4

Squa

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$29

9,10

7

Six

Oak

s |

$310

,345

Vue

| $

347,

297

600.00

525.00

450.00

375.00

300.00

225.00

150.00

75.00

0.00

Tiva

lli |

$28

2.77

Six

Oak

s |

$410

.11

Vue

| $

472.

98

Squa

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$57

7.60

A erage300,708

A erage435.87

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COMPARABLE SALE PROPERTIES - GRAPHS

6.00

5.25

4.50

3.75

3.00

2.25

1.50

0.75

0.00

Squa

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4.0

0

Tiva

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4.4

0

Vue

| 4

.70

Six

Oak

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4.80

A erage4.48

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Subject: Potala Place Shoreline15560 Westminster Way NorthShoreline, WA 98133

Square One1020 NE 63rd StreetSeattle, WA 98106

4.

Six Oaks18333 Bothell Way NEBothell, WA 98011

3.

Vue3261 SW Avalon WaySeattle, WA 98126

2.

Tivalli15707 Ash WayLynnwood, WA 98087

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COMPARABLE RENTAL PROPERTIES

$2.37Avg Rent / SF:$1,696Avg Rent:

714Avg SF:324Units:

Potala Place Shoreline 15560 Westminster Way North Shoreline, WA 98133

– Subject

95%Occupancy:$2.38Avg Rent / SF:

$1,650Avg Rent:692Avg SF:

2009Built:163Units:

507 Northgate507 NE Northgate Way Seattle, WA 98125



2013Built:319Units:

Array14027 Lake City Way NE Seattle, WA 98125



2013Built:273Units:

Leilani on Greenwood10215 Greenwood Avenue North Seattle, WA 98133

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COMPARABLE RENTAL PROPERTIES



2001Built:238Units:

Solara12736 Lake City Way NE Seattle, WA 98125

$2.17Avg Rent / SF:$1,773Avg Rent:

819Avg SF:2009Built:387Units:

Thornton Place301 NE 103rd Street Seattle, WA 98125



2008Built:289Units:

Echo Lake1150 North 192nd Street Shoreline, WA 98133



2012Built:149Units:

The Artiste20221 Aurora Avenue North Shoreline, WA 98133

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COMPARABLE RENTAL PROPERTIES - GRAPHS

2,400

2,100

1,800

1,500

1,200

900

600

300

0

Echo

Lak

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$1,6

48

The

Art

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| $

1,80

0

Sola

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$1,

841

Arr

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$1,

993

Thor

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$2,

138

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$2,1

95

507

Nor

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$2,

345

Leila

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$2,3

70

A erage1,946

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Subject: Potala Place Shoreline15560 Westminster Way NorthShoreline, WA 98133

The Artiste20221 Aurora Avenue NorthShoreline, WA 98133

7.

Echo Lake1150 North 192nd StreetShoreline, WA 98133

6.

Thornton Place301 NE 103rd StreetSeattle, WA 98125

5.

Solara12736 Lake City Way NESeattle, WA 98125

4.

Leilani on Greenwood10215 Greenwood Avenue NorthSeattle, WA 98133

3.

Array14027 Lake City Way NESeattle, WA 98125

2.

507 Northgate507 NE Northgate WaySeattle, WA 98125

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COMPARABLE RENTAL PROPERTIES MAP

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Primarily a residential enclave, the city of Shoreline is located in northwest King County along the banks of the Puget Sound, approximately ten miles north of Downtown Seattle. Shoreline is renowned for its beauty, abundance of parks, excellence school system, and its convenient location a short drive north of numerous employment hubs in Seattle, Bellevue, and Redmond. With over 56,000 residents, the multi-faceted full-service city of Shoreline is an important part of the dynamic Seattle-Tacoma-Bellevue Metropolitan Statistical Area (MSA), the most-populated metro area in Washington and the 15th-largest MSA in the United States.

Shoreline Ranked Among

the “Top 100 Best

Places to Live”

(MONEY MAGAZINE)

Shoreline was Named One

of the “Top 15 Must Live

Neighborhoods in the

Seattle Region”

(SEATTLE MET MAGAZINE)

Washington Ranked No. 8

“Best States for Business”

(FORBES)

The Puget Sound Region Will

Grow by an Additional 1.7

Million People, Increasing

to Five Million by 2040.

(PUGET SOUND REGIONAL COUNCIL)

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SHORELINE, WASHINGTON


With little available land left for development, Shoreline’s population has grown at a modest pace. From 1990 to 2016, the population of Shoreline increased 8.3%, growing to an estimated 56,438 residents.

The city’s population is projected to reach 59,230 people by 2021, equating to a 1.0% average annual increase.

According to the Puget Sound Regional Council (PSRC), by 2040, the Seattle metro area is projected to be home to nearly five million residents.

As of March 2016, the monthly average unemployment rate in Shoreline was 4.8%. Annual unemployment is expected to fall to 4.4% by year-end 2016.

Over the year ended in March 2016, the Seattle metro area noted employment growth of 3.3%, equating to the addition of more than 51,700 non-farm jobs.

According to Moody’s, Greater Seattle will see job growth advance 2.4% by the end of 2016, followed by a 1.9% gain in 2017. These increases would result in the net addition of over 83,800 jobs over the two year period.

Thanks to the proliferation of well-paying high-tech jobs throughout the Puget Sound region, the city of Shoreline has witnessed healthy increases in personal income.

From 2000 to 2016, the median household income in the city of Shoreline rose from $51,658 to an estimated $66,375, equating to an increase of nearly 30%.

The city’s median household income is projected to surpass $71,200 by 2021, up 7.3% from 2016.

9.1%

4.4%

(120,000)

(80,000)

(40,000)

-

40,000

80,000

0%

4%

8%

12%

CITY UNEMPLOYMENT RATE MSA JOBS LOST / ADDED*PROJECTED

ANNUAL UNEMPLOYMENT RATESSHORELINE, WA

POPULATION TRENDSHORELINE, WA

MEDIAN HOUSEHOLD INCOMESHORELINE, WA

POPULATION UNEMPLOYMENT INCOME

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Shoreline is part of the Bothell / Woodinville apartment submarket. The average vacancy rate in the Bothell submarket was 4.6% at the close of the first quarter 2016, a modest 20 basis points higher than the rate one year prior.

Vacancy is projected to tick up slightly amid a rash of new apartments being delivered through the reminder of the year, but with no new deliveries scheduled past 2016, vacancy is projected to trend back down in 2017.

Amid robust job creation in the technology sector and low average vacancy, average rent in the Bothell submarket increased a healthy 8.3% year-over-year to $1,611 in the first quarter of 2016.

Average rent is projected to continue to increase, rising to $1,640 by year-end 2016.

AVERAGE APARTMENT RENTBOTHELL / WOODINVILLE SUBMARKET

AVERAGE APARTMENT VACANCY RATEBOTHELL / WOODINVILLE SUBMARKET

VACANCY RENT

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Shoreline’s employment base and convenient access to other major employment hubs have generated consistent demand for apartments in the area.

Major industry clusters in Shoreline include: the educational and health services industry, business and professional services industry, wholesale trade, and finance and insurance industry. Shoreline is primarily a white collar city with nearly three quarters of residents working in white collar professions.

The Boeing Company 81,900

Microsoft Corporation 56,000

University of Washington 30,200

Amazon.com 24,700

Providence Health & Services 19,500

Wal-Mart Stores Inc. 19,300

Fred Meyer Stores 15,400

King County Government 13,400

Starbucks 10,500

Nordstrom Inc. 9,300

Seattle EDC, 2015

University of Washington 55,767

Bellevue College 18,919

Pierce College 16,916

Edmonds Community College 11,711

Green River Community College 10,584

Everett Community College 10,148

Highline Community College 9,693

Seattle Central Community College 9,436

Olympic College 8,062

Tacoma Community College 8,010

Puget Sound Business Journal, 2015 Book of Lists

SEATTLE MSA

LARGEST EMPLOYERS

SEATTLE MSA

LARGEST COLLEGES & UNIVERSITIESWith an enrollment of more than 9,280 students, the Shoreline School District, employs over 1,000 faculty and staff. Known for its academic excellence, the school district features 15 schools, serving the communities of Shoreline and Lake Forest Park.

Additionally, Shoreline Community College offers more than one hundred excellent academic, professional / technical and workforce training programs to meet the lifelong learning needs of its residents.

With a combined total enrollment of nearly 55,800 at its Seattle, Bothell, and Tacoma campuses as of fall 2015, the University of Washington (UW) is ranked among the top 50 institutions in the country by U.S. News & World Report.

EDUCATION

ECONOMY / EMPLOYMENT

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Web retailer Amazon.com is building its new headquarters in South Lake Union. Upon completion, the company will occupy a total of three million square feet of space at its new headquarters. Although Amazon has not confirmed an employee count, the project is designed to house 10,000 employees. Once completed, the addition office space will bring Amazons total foot print across the Seattle metro to more than 8 million square feet.

AMAZON HEADQUARTERS

Vertical construction work is well underway on the 44-story, 760,000 square foot hotel and office tower, located at 811 Fifth Ave. in downtown Seattle. The 660-foot, $400 million, angular glass and steel mixed-use building will feature approximately 530,000 square feet of class “A” office space and a 184-room luxury hotel on floors two through 15. The tower will be the fifth-tallest building in downtown Seattle when completed in April 2017.

THE MARK

The proposed “S” project, located on a seven acre site south of downtown Seattle, is aiming to turn the plot of land into an urban campus. The proposed plans include seven buildings, with 1.2 million square feet of office space and street-level retail. The development cost is estimated to top $750 million, and bring 5,000 to 6,000 workers to the area.

“S” PROJECT

DEVELOPMENT / CONSTRUCTION

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Shoreline residents enjoy convenient access to key transportation routes that link to Greater Seattle and beyond, by way of Interstate 5 which bisects the city.

Shoreline is located within 25 miles of the Seattle-Tacoma International Airport (SEA), commonly referred to as “Sea-Tac”. The airport served more than 42.3 million passengers in 2015, a 12% increase over the year prior, making it an integral transportation hub for the region and the 13th-busiest airport in the United States.

Shoreline is served by Metro Transit, Community Transit, and Sound Transit. Metro Transit provides service in King County and Community Transit provides service to Snohomish County. Sound Transit provides regional bus service to Seattle, Mountlake Terrace, Lynnwood, and Everett via I-5.

The Port of Tacoma facilitates international trade for local businesses and serves as a major economic hub for the region, especially with countries in the Pacific Rim.

TRANSPORTATION

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TOTAL POPULATION

TOTAL HOUSEHOLDS

MEDIAN INCOME

AVERAGE INCOME

2010 55,879

2016* 56,438

2021* 59,230

Growth Rate (2016 – 2021) 4.9%

2010 21,486

2016* 22,819

2021* 23,985

Growth Rate (2016 – 2021) 5.1%

2010 $60,589

2016* $66,375

2021* $71,239

Growth Rate (2016 – 2021) 7.3%

2010 $54,160

2016* $84,131

2021* $89,374

Growth Rate (2016 – 2021) 6.2%

MEDIAN AGE

MEDIAN HOME PRICE

RENT VS. OWN

2010 43.0

2016* 43.4

2021* 43.9

March - 2015 $379,680

March - 2016 $427,900

Growth Rate Y-o-Y 12.7%

Average Mortgage Payment* $2,198

Average Rent $1,611

Difference $587

* 30-yr fixed; 20% down; 4.15% interest rate; 1.25% property taxes

Sources: Berkadia; Tetrad; U.S. Census Bureau; U.S. Bureau of Labor Statistics; Forbes; Moody’s; Wikipedia; Axiometrics; City of Shoreline; King County;; The Economic Development Council of Seattle and King County; Seattle Times; ECONorthwest; State of Washington; Shoreline Public Schools; Northwest MLS; Puget Sound Business Journal; Puget Sound Regional Council; Washington Realtor Association.

DEMOGRAPHICS

* Projected

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Caron is a full-service architecture firm that provides simple, elegant designs for a wide variety of national and international clients. Since 2002, our experience in design and land-use planning allows us to offer streamlined project delivery resulting in unique and marketable design solutions. From up-front marketing feasibility studies all the way through design and construction administration, we strive to be our clients’ greatest advocate and prove that we are trusted project partners. Simply put, our employees are our greatest asset. We value diversity and rely on the strength of our passionate, talented staff and their diverse cultural backgrounds, to bring a fresh perspective to each of our projects. This breadth of experience, combined with our transparent and collaborative approach, ensures our clients receive the best possible service and design solutions. At Caron, our commitment to clients is never to just meet expectations but to exceed them. Services Pre-Development / Master Planning Architecture Interior Design Space Planning

Sectors Mixed-Use / Multifamily Education Student Housing Residential Retail Office Hotel & Resort

Synergy Construction, Inc. was founded on the basic principle of “Quality with Integrity,” which remains the daily focus. Founded in 1990, Synergy has built thousands of housing units and countless commercial structures throughout Washington and Oregon.

Synergy has built an industry-leading reputation by successfully taking on the most technically complex projects and the tightest urban project sites. Synergy’s expert management staff is experienced with all types of construction, from high-rise to low-rise, medical, as well as industrial. Known for quality workmanship, strong management and team communication, the Synergy team makes the construction process a pleasant and consistent experience for all — on time and on budget.

Again, the whole corporate foundation is built on integrity. That core value ensures that every member of the team is working for the benefit of the project and the client. This is the result of treating people fairly and doing what is right, always. Utilizing the best modern industry practices and unique team centered processes, Synergy consistently delivers maximum value to their clients.

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JEFF STUARTManaging [email protected]




DISCLAIMER & CONFIDENTIALITY AGREEMENT

The material contained in this document is confidential, furnished solely for the purpose of considering investment in the property described therein and is

not to be copied and/or used for any purpose or made available to any other person without the express written consent of Berkadia Real Estate Advisors.

In accepting this, the recipient agrees to keep all material contained herein confidential.

This information package has been prepared to provide summary information to prospective purchasers and to establish a preliminary level of interest in

the property described herein. It does not, however, purport to present all material information regarding the subject property, and it is not a substitute for

a thorough due diligence investigation. In particular, Berkadia Real Estate Advisors and seller have not made any investigation of the actual property, the

tenants, the operating history, financial reports, leases, square footage, age or any other aspect of the property, including but not limited to any potential

environmental problems that may exist and make no warranty or representation whatsoever concerning these issues. The information contained in this

information package has been obtained from sources we believe to be reliable; however, Berkadia Real Estate Advisors and Seller have not conducted any

investigation regarding these matters and make no warranty or representation whatsoever regarding the accuracy or completeness of the information

provided. Any pro formas, projections, opinions, assumptions or estimates used are for example only and do not necessarily represent the current or future

performance of the property.

Berkadia Real Estate Advisors and Seller strongly recommend that prospective purchasers conduct an in-depth investigation of every physical and financial

aspect of the property to determine if the property meets their needs and expectations. We also recommend that prospective purchasers consult with their

tax, financial and legal advisors on any matter that may affect their decision to purchase the property and the subsequent consequences of ownership.

All parties are advised that in any property the presence of certain kinds of molds, funguses, or other organisms may adversely affect the property and the

health of some individuals. Berkadia Real Estate Advisors recommends, if prospective buyers have questions or concerns regarding this issue, that

prospective buyers conduct further inspections by a qualified professional.

The Seller retains the right to withdraw, modify or cancel this offer to sell at any time and without any notice or obligation. Any sale is subject to the sole

and unrestricted approval of Seller, and Seller shall be under no obligation to any party until such time as Seller and any other necessary parties have

executed a contract of sale containing terms and conditions acceptable to Seller and such obligations of Seller shall only be those in such contract of sale.

For more information on these and other Berkadia Real Estate Advisors exclusive listings, please call or visit our website at www.BerkadiaREA.com

Berkadia Real Estate Advisors is the nation's largest real estate firm focused exclusively on the sale of multifamily properties. All information contained herein is from sources deemed to be reliable; however, it is notguaranteed. Printed in the USA. All rights reserved.

Copyright 2016 © by Berkadia Real Estate Advisors, Inc.

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