Portfolio of Properties in Eugene, Oregon

Listing Broker Principal Broker

Table of Contents

Summary…………………………………………………………………………………………………………1

Portfolio Overview.………………………………………………………………………………………….2

Portfolio Financials…….…………………………………………………………………………………….3

Properties.……………………………………………………………………………………………………….5

Community Highlights…………………………………………………………………………………….19

Additional Information/Appendix…………………………………………………………………..24

Disclaimer………………………………………………………………………………………………………25

Summary Thank you for taking the time to explore this portfolio. We hope you find all the information you are seeking inside this package. However, we are always available should you want any clarification or to ask any questions. Property addresses and financials are being withheld for the time being but can be accessed with the execution of a non-disclosure agreement. In this document, you will find we have provided you an overview of the portfolio followed by key financial data. After you have dived into the financials, you will read about each property and some of the things that make it great. After you make it through the properties, you will read about our wonderful area of Eugene Oregon. We believe this offering is unique in many ways and the portfolio offers a diversified stream of revenues while the properties are also located in great rental areas in our community. The investor who owns these properties is disciplined when making purchases, so these were given much deliberation. You will find a blend of typical houses or single-family residences, duplexes and multifamily properties. Some of these properties are also commercially zoned but have been used as residences. The properties zoned commercially offer flexibility in their use. They have been used as residences but that does not always have to be the case. One can opt to redevelop the property and create a more suitable or desired commercial property and pursue commercial opportunities. Other properties are on adjacent tax lots that also allow for redevelopment opportunities. Two of the properties are on adjacent lots AND located inside one of the Opportunity Zones of Eugene. The Opportunity Zones were introduced by President Trump when he signed into law the Tax Cuts and Jobs Act of 2017. The zones offer tax advantages aimed at capital gains if invested in according to the Act.

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The properties in this portfolio have been carefully selected over time by a disciplined investor and are clustered in areas that are consistently

buzzing with renters and centrally located to local attractions. They generate steady cash flow due to superior management and low vacancy rates.

The properties are in prime areas in Eugene, Oregon with one property located in a residential section of Springfield, Oregon. The properties make

fantastic rentals in a college town and all the properties are close to the University of Oregon and other prominent amenities located in Eugene.

Below is a map that displays a portion of the Eugene/Springfield area. The markers on the map highlight the properties and/or important locations in

the community. All the properties offer easy access to the University of Oregon and other major attractions.

Price $5.8 Million

Cash FlowCurrent = $368,273

Pro Forma = $392,760

# of Properties 14

# of Units 29

StyleMix of houses, duplexes,

and multi-family properties

Cap RateCurrent = 4.66%

Pro Forma = 5.01%

Portfolio Highlights

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Red Marker = Portfolio Property

Green Marker = University of Oregon

Purple Marker = Matthew Knight Arena

Blue Marker = Autzen Stadium

Yellow Marker = South Eugene High School

Legend

Price $5,800,000 Property Address: Undisclosed

Price per Unit $200,000 Zoning: Residential, Multifamily, Commercial

Useage: Rentals

No. of Properties: 14

No. of Units: 29

Scheduled Gross Income: $368,273 100.0% $392,760 100.0%

Less Vacancy Loss: $18,414 5.0% $19,638 5.0%

Effective Gross Income: $349,859 95.0% $373,122 95.0%

Less Property Taxes: $35,324 9.6% $35,324 9.0%

Less Management: $25,779 7.0% $27,493 7.0%

Less Operating Expenses: $18,414 5.0% $19,638 5.0%

Net Operating Income: $270,343 73.4% $290,667 74.0%

Current GRM: 15.75 Pro Forma GRM: 14.77

Current Cap Rate: 4.66% Pro Forma Cap Rate: 5.01%

Pricing Summary Property Description

Value Indicators

Current Pro Forma

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As mentioned before, this portfolio generates a steady, consistent, and diversified stream of rents. The properties experience low

vacancy rates and have excellent management in place.

Two units have recently been converted to Airbnb rentals. Another 4-bedroom unit is currently furnished and is being leased by the

room. Previous tenants had paid $1,800/month to occupy the entire unit and is currently being advertised for rent as of 11/09/2018.

Two of the properties located in the Whiteaker neighborhood are within the newly defined Opportunity Zone and offer their own tax

advantages and savings. The two properties are located on adjacent lots and offer redevelopment opportunities.

Address Property Type Zoning Units Bed/Bath Additional Details Lease Type Utilities Current Rent Pro Forma

Undisclosed Duplex C2 2 2+1, 2+1 Leased Water $1,667 $1,675

Undisclosed Multifamily R2 3 2+1, 1+1, Studio SFR and Duplex Leased Water $2,440 $2,440

Undisclosed Duplex C2 2 2+1, 2+1 Leased Water $1,645 $1,670

Undisclosed Multifamily R3 6

2+1, 1+1, 1+1,

1+1, 1+1, 1+1,

Studio

Leased Water $4,535 $4,610

Undisclosed Duplex C2 2 2+1, 2+1 Opportunity Zone Leased Water $1,635 $1,635

Undisclosed Multifamily C2 3 2+1, 1+1, 1+1 Opportunity Zone Leased Water $2,047 $2,375

Undisclosed SFR R1 1 4+1.5 Leased Tenant $1,695 $1,695

Undisclosed SFR C2 1 2+1 Leased Tenant $1,195 $1,195

Undisclosed SFR R1 1 3+2 Leased Tenant $1,440 $1,450

Undisclosed SFR GO 1 4+1 AirBnB Rental AirBnB Utilities (Now) $2,250 $2,500

Undisclosed Multifamily C2 44+1, 4+1, 2+1,

1+1

One unit is an AirBnB Rental. One

4-bed unit is going to be rented by

the room & furnished

2 leased, 1 AirBnB,

1 advertised

Water for building,

utilities for AirBnB$6,100 $7,325

Undisclosed SFR R1 1 2+1 Leased Tenant $1,440 $1,440

Undisclosed SFR R1 1 3+1 Leased Tenant $1,275 $1,395

Undisclosed SFR R1 1 3+2 Leased Tenant $1,325 $1,325

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Scheduled Rental Income (Monthly) $30,689 $32,730

Scheduled Rental Income (Annually) $368,273 $392,760

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The property is commercially zoned duplex with 2-bedroom, 1 bath units that rent for $925 and $750 each month. This property

(like many in this portfolio) is in the Whiteaker neighborhood, which is home to many of Eugene’s breweries. The Whiteaker area

offers ample nightlife, great restaurants, and a vibrant lifestyle, making it one of the hottest areas in Eugene. The property also sits

directly adjacent to another in the portfolio with no setback restrictions and has a maximum building height of 120 feet.

Property 1

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Property 2

This property is a duplex that consists of two 2-bedroom, 1 bath units that rents for $895 and $775 per month. It’s another

property in the Whiteaker and on the same street as the two other properties in this portfolio. Close to the vibrant nightlife,

restaurants, and breweries in the Whiteaker neighborhood.

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Property 3

This is a multifamily property consisting of one house which has 2 bedrooms and 1 bathroom, and a duplex consisting of a 1

bedroom, 1 bath unit and a studio unit. The rents per month are $960, $775, and $705, respectively. The property is in the

Whiteaker neighborhood and is on the same street as two others in this portfolio.

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Property 4

This property is 6-unit apartment complex and sits on the edge of downtown and the Whiteaker. The complex has one two-bedroom

unit, four 1-bedroom units, and one studio unit. The individual unit rents are $805, $795, $775, $760, $750, and $750 per month. The

property is also tucked behind the Beergarden, which is a unique beer/restaurant like place that really captures the Eugene and

Whiteaker lifestyle. There is a full menu of beers and ciders and a secluded and covered eating area outside where 6 of Eugene’s

best food carts operate. The establishment also has live music throughout the year.

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Property 5

The property is a duplex consisting of two 2-bedroom, 1 bath units that rent for $885 and $750. This property is in the Opportunity

Zone of Eugene and a property on the adjacent lot is also included in this portfolio sale, which gives it redevelopment and tax

savings opportunities.

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Property 6

This property is a multifamily property consisting of one 2-bedroom, 1 bath unit and two 1-bedroom, 1 bath units. The units rent

for $900, $750, and $725, respectively. This property is in the Opportunity Zone of Eugene and a property on the adjacent lot is also

included in this portfolio sale, which gives it redevelopment and tax savings opportunities.

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Property 7

This property is a fully renovated 4-bedroom, 1.5 bath house that rents for $1,695/month. It is also centrally located in the

Whiteaker in the neighborhood. It is within walking distance to the restaurants, breweries, and bus lines for those who choose to

take public transportation.

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Property 8

This property is a fully renovated 2-bedroom 1 bath house that rents for $1,195/month. This house is in the western side of Downtown and just south of the Whiteaker neighborhood. This is another great location but a little more outside of the vibrant life of the Whiteaker. Still an easy walk or bike ride to many amenities.

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Property 9

This property is a 3-bedroom, 2 bath house that rents for $1,450/month. The house is in the northern end of the Whiteaker area,

just outside of the neighborhood. However, it still within walking distance or a short bike ride to the neighborhood. The property is

also within walking distance to multiple parks, two of which access the Willamette River.

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Property 10

This property is a 4-bedroom, 1 bath house located near the University of Oregon and the south end of downtown. The property

was recently converted to an Airbnb rental which has been steadily rented. The property previously renting for $2,250 and

experienced a low vacancy rate. However, it offers a higher upside at $125/night on Airbnb which is under market pricing.

Airbnb Link: https://www.airbnb.com/rooms/28688669?s=51

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Property 11

This property is a 4-unit multifamily property consisting of two 4-bedroom 1 bath units, one 2-bedroom 1 bath unit, and one 1-bedroom

1 bath unit. One of the 4-bed units is unoccupied and being advertised for $1,595/month. The other 4-bedroom unit is furnished and

rented through Airbnb where it is experiencing great success. The other units are rented for $895 and $995. This property sits just blocks

from the University of Oregon. It is also within walking distance of many restaurants and breweries and the college nightlife scene.

Airbnb Link: https://www.airbnb.com/rooms/26488328?s=51

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Property 12

This property is a 2-bedroom, 1 bath unit that rents for $1,440/month. An easy walk gets you to the amenities of South Eugene

such as grocery markets, restaurants or local pubs. An easy bike ride gets you to the University of Oregon’s campus or to downtown

Eugene. This property sits in the heart of South Eugene and its vibe and culture. A little quieter and less busy but a beautiful and

friendly area to live. It also resides in the South Eugene school district which is one of Oregon’s top high schools.

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Property 13

This property is a 3-bedroom, 1 bath house in South Eugene that rents for $1,395/month. It offers an easy walk to the places such

as grocery markets, restaurants or local pubs. An easy bike ride gets you to the University of Oregon’s campus or to downtown

Eugene. A little quieter and less busy but a beautiful and friendly area to live. It also resides in the South Eugene school district

which is one of Oregon’s top high schools.

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This property is a 3-bedroom, 2 bath house located in Springfield, Oregon that rents for $1,325/month. It is within walking

distance of Autzen Stadium, but also provides a quiet neighborhood. The property is close to parks, dog parks, and running

trails that extend to Eugene and travel by Autzen. The house is also within walking distance to the public schools in the area.

Property 14

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The Eugene/Springfield Area In terms of rentals, the Eugene/Springfield area represents a great opportunity for many investors. The area is home to the University of Oregon and Lane Community College, which provide a constant flow of possible tenants. Many students come to our beautiful city to pursue their education, and these people need places to live. In addition to the large student population, the Eugene/Springfield area has a median income of just under $48,000 while Eugene has a median sales price of $305,000 and Springfield has a median sales price of $250,000 for single family dwellings. The high property prices and relatively lower wages do not present the ideal situation for people to purchase properties. Instead, many people rent, which is evidenced by the declining homeownership rate in the Eugene/Springfield area. The homeownership rate has gone down by nearly -6% since 2010. Our largest employers being public and government institutions along with local hospitals offer stability but not the glamour of high wages. Aside from the local economy, our community draws in people from all over even if they are not here for the long-term. The Pacific Northwest offers a seemingly unlimited number of beautiful rivers, lakes, and mountains to explore while enjoying one of the many delicious microbrews found in Eugene.

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Whiteaker District This hidden gem has been a work in progress for a while. Once a beat down area of Eugene, now it’s a thriving and exuberant place to be during the day and at night. This area offers some of the best restaurants Eugene has to offer. From Tacovore to Meiji’s to one of the many food carts located at the Beer Garden, this area has it all. Once you have filled up your stomach, enjoy a cold beer at one of the local microbreweries. This area is constantly on the radar of many local investors who are consistently finding ways to improve the vibrant lifestyle this area offers. Additionally, the City of Eugene has determined certain areas within the neighborhood and close to it to be in the Opportunity Zone which offers tax savings and redevelopment opportunities. Additionally, the City of Eugene has given tax abatements in the past to encourage developers to invest in this area. Downtown Eugene Heading a South of the Whiteaker area, you will find what locals would refer to as “downtown”. This area is a blend of restaurants, businesses, and nightlife. Voodoo donuts and Sizzle Pie are two restaurants you can’t pass up if you are wandering around downtown. If you are tired of walking, stop into the Broadway Metro to catch a movie. The Broadway Metro is an old-style movie theater that values intimacy instead of vast numbers of movie-goers. Eugene’s budding tech scene is on full display in this area and the city of Eugene is in the middle of upgrading its fiber optic network in the downtown area, which will boost commerce and communications. The network, known as EUGNet, will connect over 120 buildings in the area, which is critical to expanding Downtown Eugene’s budding technology sector. The network will deliver speeds of up to one gigabit. The expansion will encourage business and economic growth to the area.

South Eugene Heading more South, you reach “South Eugene” which is a little calmer and more relaxed. Many avid runners and bicyclist enjoy this area due to the running and biking trails. This area is a little removed from the downtown scene but offers some great eateries and local grocery stores and restaurants. South Eugene High School is in this area and was named one of the best high schools in Oregon. Many people move to South Eugene specifically to be inside this school district.

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University of Oregon/Track Town USA The university is the heart and soul of this community. The University of Oregon offers a world class education with state-of-the-art equipment and facilities. Over 23,000 students enroll at the university every year, roughly half of those students are not from Oregon, which means those students have to be housed somewhere. The Eugene area does not have a professional team, aside from a minor league baseball team. However, we do have the Oregon Ducks! You will find many people, young and old, wearing green and yellow in this city. We have some pretty good sports teams who put on the Duck uniform. The football team is routinely in contention for Pac 12 championships and in the national championship conversation more often than not. The Ducks basketball team made it to the Final 4 in 2016. The university’s cross country and track programs have won multiple team championships, multiple individual championships, and have sent many athletes to the Olympics where some have also brought home gold medals. Years ago, Eugene was dubbed “Track Town USA” and it is easy to see why. The sports programs are great for building excitement and buzz. The school leverages the publicity to bring more excitement and people to Eugene. It is certainly helpful that Nike founder, Phil Knight, ran at Oregon and is Oregon’s biggest booster. The school has been fortunate to have been on the receiving end of multimillion-dollar donations which have only improved the sports and educational facilities in Eugene.

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Autzen Stadium, Matthew Knight Arena, Hayward Field Autzen stadium can hold roughly 65,000 people but is as loud as stadiums that hold nearly twice as many people. Saturdays during the football season, the stadium is packed inside and outside with people from all over Oregon who come to cheer on the Oregon Football team. It truly is a unique experience to spend a Saturday tailgating and watching an Oregon football game. Even people who move into Eugene from other areas quickly begin to bleed green and yellow. The design and construction of Matthew Knight Arena involved Phil Knight and appropriately named after his late son, Matthew. While Mac Court was a historic basketball court with years of history, it was also becoming unsafe. Enter Phil Knight who saw an opportunity to build a world class arena for the City of Eugene and University of Oregon. The men’s and women’s basketball teams play their home games at this arena which seats 12,000 fans. Additionally, there are multiple shows, concerts, and other events held at Matthew Knight arena. Hayward field had to be one of the most historic venues in Eugene. Many international runners spoke very highly about running on this track and the atmosphere was like nothing else. The track was so world-renown that multiple NCAA championships, World Championships, and Olympic Trials were held at this venue. In fact, Hayward field has hosted the most NCAA Outdoor Track and Field Championships (15) and the most US Olympic Trials (6). Twenty world records have also been set on this historic venue. Unfortunately, much like Mac Court, this old track experienced the end of its life. The university is currently building a state-of-the-art track that will be able to hold even more fans and will continue the magic of Track Town USA.

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Downtown Springfield Another booming area is the downtown Springfield region, which sits just east of I5 off Franklin Blvd. Technically it turns into Main street once you cross I5. Nonetheless, the City of Springfield has made it a priority to incentivize and revitalize this area. Over the past few years, it has done just that. Many business and multifamily properties have either been remodeled or newly built. Now this area is buzzing with excitement at the end of each day and even more so on the weekends.

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*data per each city’s comprehensive annual financial report

*data per the FRED of the US Federal Reserve’s economic research department

*data per Regional Multiple Listing Service (RMLS)

Appendix 1 – Eugene/Springfield Statistics

Most Recent 2010 Growth

Population (2016) 228,474 209,049 9.29%

Median Income (2016) $47,777 $40,545 17.84%

Average Wages (2018) $25.40 $19.10 32.98%

Unemployment (2018) 4.40% 10.20% -56.86%

Homeownership (2016) 59.98% 63.59% -5.68%

Eugene/Springfield Statistics

Eugene Springfield

Median Sales Price (YTD 2018) $305,000 $250,000

Median Rent (Oct. 2018) $1,495 $1,395

Housing Statistics

Rank Employer # of Employees

1 PeaceHealth 9,158

2 University of Oregon 5,549

3 Eugene School District 2553

4 U.S. Government 1750

5 McKenzie-Willamette Hospital 1684

6 Lane Community College 1650

7 Springfield School District 1610

8 State of Oregon 1594

9 Lane County 1567

10 City of Eugene 1417

Top Employers • Homeownership is trending in a negative direction

• Median income does not support current median sales prices, making it more likely for people to rent

• Population and migration are trending upward

• Top employers are public service organizations, which provide long-term stability but not high wages

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Disclaimer

This confidential Offering memorandum has been prepared by Grand Realty for use by a limited number of parties whose sole purpose is to evaluate

the possible purchase of the subject property. This Memorandum has been prepared to provide summary, unverified information to prospective

purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a

thorough due diligence investigation.

The information contained in the Memorandum has been obtained from sources we believe to be reliable. While we do not doubt its accuracy, we

have not verified it and make no guarantee, warranty, or representation about it. It is your responsibility to independently 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 taxes and other factors which should be evaluated by your tax, financial

and legal advisors. You and your advisors should conduct a careful, independent investigation of the property for your needs. All potential buyers

must take appropriate measures to verify all the information set forth herein. Both Grand Realty and the Owner disclaim any responsibility for

inaccuracies and expect prospective purchasers to exercise independent due diligence in verifying all such information. The contained information is

subject to change at any time and without notice. The recipient of the Memorandum shall not look to the Owner or Grand Realty for the accuracy of

completeness of the Memorandum.

A prospective purchaser must make its own independent investigations, projections, and conclusions regarding the acquisition of the property

without reliance on this Memorandum or any other confidential information, written or verbal, from the Broker or the Seller. The Owner expressly

reserves the right, at its sole discretion, to reject any offer to purchase the property or to terminate any negotiations with any party, at any time, with

or without written notice. Only a fully-executed Real Estate Purchase Agreement, approved by Seller, shall bind the property. Each prospective

purchaser and /or broker proceeds at its own risk.

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