For more information contact: Kyle Sterling+1 425 586 5608ksterling@nai-psp.com

Offering Memorandum116 A Street SE, Auburn, WA

The information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied, as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to

be material, including, but not limited to, statements of income and expenses. CONSULT YOUR ATTORNEY, ACCOUNTANT OR OTHER PROFESSIONAL ADVISOR. 2017/Offering Memorandum/116 A Street

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Table

of Contents

1 Property Overview

2 Financial Overview

3 Sale Comps

4 Lease CompsTHIS BROKERS PRICE OPINION IS NOT AN APPRAISAL AS DEFINED IN CHAPTER 18.140 RCW AND HAS BEEN PREPARED BY A REAL ESTATE LICENSEE, LICENSED UNDER CHAPTER 18.85 RCW WHO IS NOT ALSO STATE CERTIFIED OR STATE LICENSED AS A REAL ESTATE APPRAISER UNDER 18.140 RCW.

The information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied, as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to

be material, including, but not limited to, statements of income and expenses. CONSULT YOUR ATTORNEY, ACCOUNTANT OR OTHER PROFESSIONAL ADVISOR. 2017/Offering Memorandum/116 A Street

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01 Property Overview

ADDRESS 116 A Street SE, Auburn, WA

ASSESSOR PARCEL NUMBER 733140-0345 & 733140-0315

BUILDING SIZE 5,280 SF

LOT SIZE 14,100 SF

YEAR BUILT 1953

ZONING DUC

Property Overview

The information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied, as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to

be material, including, but not limited to, statements of income and expenses. CONSULT YOUR ATTORNEY, ACCOUNTANT OR OTHER PROFESSIONAL ADVISOR. 2017/Offering Memorandum/116 A Street

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01 Property OverviewProperty Overview Cont.

Highlights

• Irreplaceable Downtown Location• Adjacent to Safeway Supermarket• Ample Parking

116 A Street Southeast is ideally located in the heart of downtown Auburn, just south of Main Street and north of 2nd Street SE. The property is shadow anchored by a five acre Safeway supermarket, the busiest grocery store in the city, which sits directly adjacent to the subject property. Just one parcel to the north of a subject property sits a Chase Bank location. MultiCare Hospital and Auburn City Hall are located one block northwest of the subject property.

116 A Street Southeast is zoned DUC, or Downtown Urban Center. All property in the Downtown Revitalization Catalyst Area is zoned DUC. Since 2010, the City of Auburn has been investing millions of federal and state funds to make the downtown area more attractive for private sector business. The city has improved infrastructure, upgraded utilities, installed new street paving, and constructed new downtown plazas.

The massive revitalization project has paid dividends, as over 800 residential units have been developed or are in the process of being developed in the immediate area. Directly across the street from 116 A Street Southeast sits Merrill Gardens Auburn, a 129-unit senior housing facility, which just opened in February of 2017 and is already 98% occupied. Just north of the subject property sits the Trek Apartments, a 126-unit apartment facility that opened in July of 2015 and is 95% occupied. As a result, the subject property has seen a surge in foot and vehicle traffic along A Street Southeast.

116 A Street Southeast consists of a 5,280 square foot flex commercial building situated on 14,100 square feet of land. The building is currently occupied by Gosanko Chocolate, a family owned and operated company that’s become a premiere chocolate manufacturer in the region.

Gosanko Chocolate will be vacating the property, making this an ideal opportunity for an owner-user buyer, who can take advantage of historically low rates associated with SBA financing.

The subject property is benefitted by a sizable parking lot, which contains 14 striped parking spaces. The parking lot is wide enough for delivery trucks and other large vehicles to operate.

116 A Street Southeast is located in a dense demographic location, with an immediate population upward of 100,000 people within a three mile radius. In addition, the property benefits from excellent visibility and traffic counts.

116 A Street Southeast is being offered for sale at $1,050,000.

• Excellent Visibility and Frontage• High Traffic Counts

The information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied, as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to

be material, including, but not limited to, statements of income and expenses. CONSULT YOUR ATTORNEY, ACCOUNTANT OR OTHER PROFESSIONAL ADVISOR. 2017/Offering Memorandum/116 A Street

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01 Property OverviewRetail Map Close-in

City HallA Street SE

E Main Street

2nd Street SE

S Division Street

Auburn W

ay S

The information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied, as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to

be material, including, but not limited to, statements of income and expenses. CONSULT YOUR ATTORNEY, ACCOUNTANT OR OTHER PROFESSIONAL ADVISOR. 2017/Offering Memorandum/116 A Street

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01 Property Overview

Bellevue | Seattle | Tacoma

The information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied, as to its accuracy. Prospective Buyer or Tenant should conduct an independentinvestigation and verification of all matters deemed to be material, including, but not limited to, statements of income and expenses. CONSULT YOUR ATTORNEY, ACCOUNTANT OR OTHER PROFESSIONAL ADVISOR.

1

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Housholds & Income 1 Mile 3 Miles 5 Miles

TOTAL HOUSEHOLDS 3,819 26,915 63,916# OF PERSONS PER HH 2.3 2.5 2.7AVERAGE HH INCOME $46,961 $58,437 $68,765AVERAGE HOUSE VALUE $275,836 $287,539 $320,652

Population 1 Mile 3 Miles 5 Miles

TOTAL POPULATION 8,923 68,425 169,405MEDIAN AGE 37.9 35.0 35.3MEDIAN AGE (MALE) 37.4 34.0 34.8MEDIAN AGE (FEMALE) 38.7 36.6 36.0

* Demographic data derived from 2010 US Census

0

Demographics MapDemogaphics Map

The information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied, as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to

be material, including, but not limited to, statements of income and expenses. CONSULT YOUR ATTORNEY, ACCOUNTANT OR OTHER PROFESSIONAL ADVISOR. 2017/Offering Memorandum/116 A Street

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02 Financials

2 Financial Information

Operating Data

Scheduled Lease Income: $79,200

NNN Charges: $20,796

Effective Gross Income: $99,996

Vacancy (5%): $4,999.80

Expenses: $20,796

Net Operating Income: $74,200

Loan Payment: $0

Pre-Tax Cash Flow (0%): $74,200

Principal Reduction: $0

Total Return Before Taxes (0%): $74,200

Expenses

Taxes (1.00%): $10,500

Insurance $2,112

Utilities $2,640

Repairs & Maintenance $3,168

Management $2,376

26.26%

Total Expenses: $20,796

Expenses Per SF $3.94

Tenant SF % Lease Start Lease Exp. Options Base Rent Rent/SFProforma

Rent Proforma/SF

VACANT 5,280 100 $- $- $6,600 $1.25

5,280 100 $- $6,600

Tenant Information

The information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied, as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to

be material, including, but not limited to, statements of income and expenses. CONSULT YOUR ATTORNEY, ACCOUNTANT OR OTHER PROFESSIONAL ADVISOR. 2017/Offering Memorandum/116 A Street

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02 FinancialsFinancial Information Overview

The information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied, as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to

be material, including, but not limited to, statements of income and expenses. CONSULT YOUR ATTORNEY, ACCOUNTANT OR OTHER PROFESSIONAL ADVISOR. 2017/Offering Memorandum/116 A Street

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02 Financials

List Price $1,050,000

ProForma CAP 7.07%

Price per SF - Bldg(5,280 SF)

$199

Price per SF - Land(14,100 SF)

$ 74

Financial Information Pricing Information

Pricing Information

A Street SE

The information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied, as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to

be material, including, but not limited to, statements of income and expenses. CONSULT YOUR ATTORNEY, ACCOUNTANT OR OTHER PROFESSIONAL ADVISOR. 2017/Offering Memorandum/116 A Street

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02 FinancialsFinancial Information SBA Financing

Price: $1,050,000

SF: 5,280

Down Payment $157,500

Loan Amount $892,500

Debt Service $4,961

Building Expenses Per Month $1,733

Total Expenses Per Month $6,694

Total Expenses Per SF $1.27

The information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied, as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to

be material, including, but not limited to, statements of income and expenses. CONSULT YOUR ATTORNEY, ACCOUNTANT OR OTHER PROFESSIONAL ADVISOR. 2017/Offering Memorandum/116 A Street

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03 Sale Comps

3 Sale Comparables

The information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied, as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to

be material, including, but not limited to, statements of income and expenses. CONSULT YOUR ATTORNEY, ACCOUNTANT OR OTHER PROFESSIONAL ADVISOR. 2017/Offering Memorandum/116 A Street

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03 Sale Comps

18 Auburn Way S, Auburn, WA

SQUARE FEET 3,760

LAND AREA SQUARE FEET

5,227

SALE PRICE $795,000

PRICE PER SQUARE FOOT

$211.44

PRICE PER LAND SQUARE FOOT

$152.09

SALE DATE 9/30/2015

YEAR BUILT 1948

ACTUAL CAP RATE -

CROSS STREET Main Street

1- Sold

The information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied, as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to

be material, including, but not limited to, statements of income and expenses. CONSULT YOUR ATTORNEY, ACCOUNTANT OR OTHER PROFESSIONAL ADVISOR. 2017/Offering Memorandum/116 A Street

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03 Sale Comps

Commercial Lot21 S Division Street, Auburn, WA

SQUARE FEET -

LAND AREA SQUARE FEET

14,375

SALE PRICE $990,000

PRICE PER SQUARE FOOT

-

PRICE PER LAND SQUARE FOOT

$68.87

SALE DATE 4/10/2015

YEAR BUILT -

ACTUAL CAP RATE -

CROSS STREET 1st Street

2- Sold

The information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied, as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to

be material, including, but not limited to, statements of income and expenses. CONSULT YOUR ATTORNEY, ACCOUNTANT OR OTHER PROFESSIONAL ADVISOR. 2017/Offering Memorandum/116 A Street

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03 Sale CompsSale Comparable Map

The information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied, as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to

be material, including, but not limited to, statements of income and expenses. CONSULT YOUR ATTORNEY, ACCOUNTANT OR OTHER PROFESSIONAL ADVISOR. 2017/Offering Memorandum/116 A Street

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04 Lease Comps

4Lease Comparables

The information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied, as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to

be material, including, but not limited to, statements of income and expenses. CONSULT YOUR ATTORNEY, ACCOUNTANT OR OTHER PROFESSIONAL ADVISOR. 2017/Offering Memorandum/116 A Street

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04 Lease Comps

1 2 3 4 5 6 7

PROPERTY ADDRESS

230-240 Auburn Way SAuburn, WA

Patricia Builiding205 S Division StreetAuburn, WA

Past Time/Truitt Site102 W Main StreetAuburn, WA

Rottles234-238 E Main StreetAuburn, WA

Max House101 E Main StreetAuburn, WA

Auburn Retail Center413-447 E Main StreetAuburn, WA

Morchin Property510 A Street NEAuburn, WA

TOTAL BLDG SIZE

(SF)12,000 11,888 21,015 16,000 16,888 20,000 1,020

AVAILABLE (SF)

1,500 1,000 1,800 13,000 2,000 8,000 1,020

RENT PSF $0.833 $1.00 $1.25 $1.00 $1.29 $1.33 $1.16

LEASE TYPE

NNN Modified Gross NNN NNN Modified Gross NNN NNN

ASSET CLASS

Office Retail, Office Office Retail Retail Retail, Office Office

Lease Comparable

The information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied, as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to

be material, including, but not limited to, statements of income and expenses. CONSULT YOUR ATTORNEY, ACCOUNTANT OR OTHER PROFESSIONAL ADVISOR. 2017/Offering Memorandum/116 A Street

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04 Lease CompsLease Comparable Map